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Human�Resource�ManagementDMGT208

HUMAN RESOURCE MANAGEMENT

Copyright © 2012 Madhurima Lall & Sakina Qasim ZaidiAll rights reserved

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forLovely Professional University

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SYLLABUS

Human Resource Management

Objectives:To provide a framework for understanding the HR policies and their impact on employees.To cover the entire range of HR functions and the strategic role of HRM in business.

Sr. No. Description

1. Human Resource Management: Evolution, Functions, HRM Policies & Principles, System Approach to Human Resource Management; HR Relationship with other Departments; e-HRM, Human capital Management, Environment of HRM–Internal & external forces affecting the HR function. Global HRM

2. Strategic Human Resource Management: HRM & its Role in Creating Competitive Advantage; Creating Strategic HRM System.

3. Job Analysis, Job Enrichment and Job Enlargement: Methods for Collecting Job Analysis Information, Human Resource Planning–Process, Affecting Factors & its Link with Strategic Planning Human Resource Information System.

4. Recruitment & Selection Process: Planning and Forecasting, Effective Recruiting, Internal and External Sources of Candidates, Recruiting a Diverse Workforce, Employee Testing and Selection Induction and Placement: The Challenges

5. Training and Development: T&D Process, Methods of Employee Training, Methods of Executive Development, Evaluating the Training Effort.

6. Performance Management: Components of Performance Management, Performance Appraisal Methods, Potential Appraisal, Performance Counselling, Common Rating Errors, Creating the Total Performance Management Process.

7. HRD: Need and Scope, HRD Climate, HRD Practices in Indian Organizations, Quality of Work Life, Employee Empowerment, Career Planning, Knowledge Management, Mentoring & Reverse Mentoring.

8. Compensation Management: Establishing Pay Plans and Rates, Job Evaluation, Pricing Managerial and Professional Jobs, Competency-based Pay, Variable Pay Plans, Fringe Benefits.

9. Industrial Relations: Industrial Relations & Trade Unions, Dispute Resolution & Grievance Management, Discipline & Disciplinary Action, Employee Empowerment.

10. Health & Safety Management: Management Role in Safety, Causes and Preventions of Accident. Workplace Health Hazards: Problems and Remedies

CONTENTS

Unit 1: An Introduction to Human Resource Management 1

Unit 2: Strategic Human Resource Management 35

Unit 3: Job Analysis, Job Enrichment and Job Enlargement 46

Unit 4: Recruitment and Selection Process 73

Unit 5: Induction and Placement 91

Unit 6: Training and Development 101

Unit 7: Performance Management 123

Unit 8: Compensation Management 141

Unit 9: HRD 166

Unit 10: Industrial Relations and Trade Unions 197

Unit 11: Employee Grievance and Discipline 215

Unit 12: Health & Safety Management 225

Unit 13: Workplace Health Hazards 240

Unit 14: Global HRM 248

Unit 1: An Introduction to Human Resource Management

Notes

LOVELY PROFESSIONAL UNIVERSITY 1


CONTENTS

Objectives

Introduction

1.1 MeaningandDefinitions

1.2 Evolution

1.3 HRM Functions

1.4 HRM Policies and Principles

1.4.1 Reasons for Adopting Personnel Policies

1.4.2 BenefitsofPolicyFormulation

1.4.3 FactorsConsideredforPolicyDevelopment

1.4.4 Distributing New Policies

1.4.5 Principles of HRM

1.4.6 Characteristics of Principles

1.5 Role of a Personnel Manager

1.6 SystemApproachtoHumanResourceManagement

1.7 HRRelationshipwithotherDepartments

1.8 E-HRM

1.8.1 Objectives of E-HRM

1.8.2 TypesofE-HRM

1.8.3 Scope of E-HRM

1.8.4 E-HRM:AdvantagesandLimitations

1.9 HumanCapitalManagement

1.9.1 DynamicsofHRArchitecture

1.10 EnvironmentofHRM

1.11 Internal and External Forces affecting the HR Function

1.11.1 External Forces

1.11.2 Internal Forces

1.12 Summary

1.13 Keywords

1.14 Review Questions

1.15 Further Readings


Notes

2 LOVELY PROFESSIONAL UNIVERSITY

Objectives

Afterstudyingthisunit,youwillbeableto:

DefinethetermHRMzz

Discusstheevolution,functions,HRMpolicies&principleszz

Statetherelevanceofsystemapproachtohumanresourcemanagementzz

Explaintheconceptofe-HRMandhumancapitalmanagementzz

AnalyzeenvironmentofHRMzz

Introduction

HRMisconcernedwithmanagingthepeopleresourcesofanorganization. In fact,managinghuman resources is themost crucial and challenging task thatmanagement has to perform,crucialbecauseitisthekeytosustainabilityinthepresentcompetitiveworldandchallengingbecauseno two individualsaresame–theyhavedifferentsetofneeds,ambitions,aspirations,mentalmake-up,backgrounds.Canyourecallmoredifferences?Nowimaginethetaskofthehumanresourcemanagerwhohastosatisfynotonlythedifferentsetofneedsofitspeoplebutalsomeettheoverallorganizationalobjective.

Theimportantresourcesthathavetobemanagedbytheorganizationinclude:human,finance,operationsandinformation.Outofthese,humanresourcemanagementistheonlyresourcethatislivingpartoftheorganization.Itisthislivingpartwhichvibratespositiveenergyandleadstotheplanning,organizing,controlling,coordinatinganddirectingoftherestoftheresourceswithintheorganization.Itisthesub-systemwhichwillultimatelyleadtotheoverallgrowthoftheorganization.Thus,humanresourceisacrucialsub-systemintheprocessofmanagement.

1.1 Meaning and Definitions

HumanResourceManagementisaprocessofbringingpeopleandorganizationtogethersothatthegoalsofeacharemet.Itisthatpartofthemanagementprocesswhichisconcernedwiththemanagementofhumanresource inanorganization. It tries tosecure thebest frompeoplebywinning their whole hearted co-operation.

Itmaybedefinedastheartofprocessing,developingandmaintainingcompetentworkforcetoachievethegoalsofanorganizationinaneffectiveandefficientmanner.

It isconcernedwiththemosteffectiveuseofpeopletoachieveorganizationalandindividualgoals.

HumanResourceManagementistheprocessofmanagingthevibratinghumanresourceinanorganization,sothattheemployeeandemployerwillbeabletoachievetheirrespectiveobjectives.Infact,humanresourcemanagementisthemostimportantassetforanorganization.Thequalityofhumanresourcewilldetermineitsfate.

AccordingtoMLCuming,“HumanResourceManagementisconcernedwithobtainingthebestpossiblestaffforanorganizationandhavinggotthemlookingafterthem,sothattheywanttostayandgivetheirbesttotheirjobs.”

Dale Yoder definesHumanResourceManagement as that part of the phase ofmanagementdealing effectivelywith control and use ofmanpower as distinguished fromother source ofpower.

AccordingtoFELBrech,HumanResourceManagementisthatpartofmanagementprogresswhichisprimarilyconcernedwiththehumanconstituentsofanorganization.


Notes


Edisondefines,HumanResourceManagementasthescienceofhumanengineering.

According to LeonC.Megginson, the term human resource can be thought of as, “the totalknowledge,skill,creativeabilities,talentsandaptitudesofanorganization’sworkforce,aswellasthevalues,attitudesandbeliefsoftheindividualsinvolved.”

1.2 Evolution

Evolution of the concept of HRM is briefed hereunder:

Concept What is it all about? The commodity concept Labour was regarded as a commodity to be bought and

sold. Wages were based on demand and supply. Governments did very little to protect the interest of the workers.

The factor of production concept Labour was treated as any other factor of production viz money, material, land etc. workers were treated like machine tools.

The Goodwill concept

Welfare measures like safety, first aid, lunch room, rest room were introduced, assuming that they would have a positive impact on worker’s productivity.

The Paternalistic concept/ Paternalism

During this era, the philosophy was: management must assume a fatherly and protective attitude towards employees.

The Humanitarian concept

To improve productivity, social, psychological, physical needs of the workers must be met. As Elton Mayo stated, money is not the only motivating factor.

The Human Resource concept

Employees are the most valuable assets of an organization became the philosophy of organization.

The Emerging concept

Employees should be accepted as partners of a company. The focus should be on human resource development to gain competitive advantage became the philosophy of management.

Table 1.1: Evolution of the Concept of HRM

The historical evolution of HR can be drawn into six stages:

Stage I: Pre-Industrial Era (1400-1700 AD)

Stage II:IndustrialRevolutionandFactorySystem(1700-1900AD)

Stage III: ScientificManagement,WelfareWorkandIndustrialPsychology(1900-1935AD)

Stage IV: GoldenAgeofIndustrialRelationsandPersonnelManagementMaintenanceFunction(1935-1970)

Stage V: Control of Labour Tradition (1970-1990)

Stage VI: Professional Tradition (1990- till date)

Early Phase

ThoughitissaidthatHumanResourceManagementisadisciplineofrecentgrowth,ithashaditsorigindatingbackto1800BC.

1. For example, the minimum wage rate and incentive wage plans are included in theBabylonianCodeofHammurabiaround1800BC.

2. TheChinese,asearlyas1650BC,hadoriginatedtheprincipleofdivisionoflabourandtheyunderstoodlabourturnoverevenin400BC.


Notes


3. Kautilya in India (in his bookArthasastra)made reference to various concepts like jobanalysis,selectionprocedures,executivedevelopment,incentivesystemandperformanceappraisal.

Stage I: Pre-Industrial Era (1400-1700 AD)

Beginningaround1400ADandcontinuinguntil1700AD.ThisperiodismarkedbyanabsenceofanyformalHumanResourceManagementfunctionwithintheorganization.Severaldramaticchanges occurred during this first stage that represent seeds from which modern HumanResourceManagementlatergrew.

First, there was cessation of feudalism, release of labour from land and beginning of freeemploymentrelationshiponwhichmodernlabourmarketsarebased.

Second,therewasashiftfromsubsistenceagriculturetoacommercialmixedeconomy,theriseofurbaneconomy,adiffusioneconomiccontrolanddistributionofwealthandincome.

Third, therewas a spectacular growth of towns and villages alongwith amiddle class thatincludedskilledcraftsmenandmerchantswhoweretheforerunnersoffactoryowners.

Stage II: Industrial Revolution and Factory System (1700-1900 AD)

The Industrial relations began in 18thcenturyintheUK,in19thcenturyintheUSAandinthesecond half of 20thcenturyinIndia.Itwasmadepossiblebythereplacementofhumaneffortand skill by the work of machines. One of the contributions of industrial relations was thedevelopmentofthe‘factory’system.Factoriesgreatlyexpandedproductionandcreatedanewclassofworkersandmanagers.Itbroughtaboutdivisionofwork.Itnecessitatedsupervisinglargenumberofworkers.Withtheadventoffactorysystem,personnelpracticesbecameautocratic,based on Commodity concept of Labour.Labourwaspurchasedattermsdesignedtomaximizetheemployer’sprofit.Consequently,therewasatotalneglectof“HumanFactor”;thefocuswasuponmaterials,marketandproduction.

Stage III: Scientific Management, Welfare Work and Industrial Psychology (1900-1935 AD)

ScientificManagementandWelfareWork represent twoseparateandconcurrentmovementsthat began in the 19thcenturyandalongwithcontributionfromIndustrialPsychology,mergedaroundthetimeofWorldWarItoformthefieldofHumanResourceManagement.

Scientificmanagementrepresentsanefforttodealwithlabourandmanagementinefficienciesthroughreorganisationofproductionmethodsandrationalizationofwork.

Welfareworkisdefinedasanythingdoneforcomfortandimprovement,intellectualorsocialfortheemployeesoverandabovewagespaid,whichisnotthenecessityofindustry,notrequiredbylaw.Itrepresentseffortstodealwithlabourproblemsbyimprovingworkers’conditions.

Industrialpsychologyrepresentedtheapplicationofpsychologicalprinciplestowardsincreasingtheefficiencyofindustrialworkers.

MajorDevelopmentsduringthisStage:

1881-1891: FactoriesActof1881and1891waspassedshowingconcernfortheworker’swelfare.Theseactswerelimitedtoworkinghoursofwomenandchildren.

1919: AllIndiaTradeUnionCongress(AITUC)wasformed.


Notes


InternationalLabourOrganisationwasestablishedasanautonomousorganof theLeagueofNationsin1919.IthasitsheadquartersatInternationalLabourOfficeinGeneva,Switzerland.Themainobjectivesofsocialjusticeinclude:

(a) ItadoptedanInternationalLabourConventionandrecommendedtoprotecttheworker’sclaimsintheeventoftheinsolvencyoftheiremployer.

(b) Itelaboratedresolutionsontheroleofenterprises inemploymentgrowth,employmentpolicyasacomponentofoveralldevelopmentandtherightsofmigrantworkers.

Stage IV: Golden Age of Industrial Relation and Personnel Management Maintenance Function (1935-1970)

After theWorldWar I, therewas great depression. Following the depression, therewas anincreasedneedforthepracticeofHumanResourceManagementasaresultofagrowthinunionsand collective bargaining.At this time, therewas a shift in emphasis towards the IndustrialRelationFunctionofHumanResourceManagement.

During theperiod from1945 to 1970, theprimary focusof the employment relationshipwasonindustrialrelationsandthishumanresourcemanagementfunctionroseinprominence.Thepro-unionlegislationwasfollowedbyWorldWarII,whichcreatedanextraordinarydemandforlabour,resultedinunprecedentedunionprestigeandfuelledaphenomenalgrowthinunionmembership.

Theindustrialrelationsideofhumanresourcemanagementexperienceditsgoldenagebetween1948and1958.Thegeneral focusofhumanresourcemanagementwasonindustrialrelationsbecause the primary need of many organizations was to operate in collective bargainingframeworkoflabourrelations.

Major changes during the Period:

1. ThefirststepwastheenactmentofIndustrialDisputesAct,1947,whichnotonlyprovidesfortheestablishmentofpermanentmachineryforthesettlementofindustrialdisputebutalsomakestheseawardsbindingandlegallyenforceable.

2. AnotherdevelopmentwassettingupofIndianLabourConference—atripartitebodytolook into industrial relationproblems in India. Itwas constitutedwith the objective ofestablishingco-operativebetweengovernment,employersandtradeunions.

3. Anotherimportantfeaturewaschangeinattitudeofgovernmenttowardslabourandtheirproblems.Many labour lawswereenactedtoprotect the interestsof industrialworkersduring1947to1956.Theselawscovermanyissuesconcerninglaboursuchasseniority,wagerates,paidholidays,disciplinarymatters,socialsecurityetc.

Stage V: Control of Labour Tradition (1970-1990)

Theinstitutionofthetradeunion,whichisaproductofcapitalistindustrialization,emergedinBritainandotherdevelopedcountriesintheWestinthe19thcentury,basicallytoprotectagainsttheinjusticeandexploitationmetedouttoworkersbytheownersofCapitalduringthecourseof industrialization.Labourmovementinmanycountriesstarteditsownpoliticalpartiesandengaged in struggle at both thepolitical and economic fronts.Gradually, over the years, thelabourclassgotintegratedintothelargersocietywiththeacceptanceoftheirdemandsbytheemployers,firstforcollectivebargainingandthenforworker’sparticipationinmanagement.Thisledtotheirrisetoprominenceandpowerinindustryandsocietyinthe20thcentury.Buttradeunionswitnessedsignificantlossofmembershipduringthe1980sand1990s.Variousreasonsforthelossofcontroloflabourtraditioncouldbeanalyzedasfollows:


Notes


1. Trade union developed not under the leadership ofworkers but under the leadershipofoutsidersthatissocialworkersandnationalistleaders.Itwasledbypoliticalleaders.Moreover,thepoliticalleadershipwasinternallydividedonideologicallines.

2. Governments increasingly took upon themselves the wage-welfare functions of tradeunions forwhich it passed aplethoraof labour legislations,protecting jobs ofworkersandalsoprovidingforvariouswelfaremeasures.This,however,furtherweakenedtradeunionsandimpededthegrowthofthesystemofcollectivebargainingintheindustry.Infact,eventhoughIndiahasprobablythelargestnumberoflabourlawsintheworld,itdoesnot have a central law that provides for the recognition of trade unions.

3. Therehasbeen significant change in the social compositionof the labour force.Anewgenerationofworkershasemerged in their industriessince themid50sorso,whoarelargely from upper castes andwho are also young, educated and urban in origin. Tothem,atradeunionconstitutesnotamovement,butanagencywhichhastoprovidethemservicesinreturnfortheirsubscriptionandpoliticalsupport.Theyleaveaunionwhenitisunabletoprovidethembenefitsandjointhosewhopromisetogivethemthesebenefits.Consequently, inter-union rivalry is high and the recognized unions particularly facedifficultyinretainingthesupportofworkersonacontinuingbasis.

4. In fact, rising unemployment and underemployment and increasing price have hit theworkingclasshard.Suchasituationnotonlymakestheworkersprimarilyinterestedinquestionsofjobsecurity,payandothermaterialrewardsthatistostriveforconsumption,whichisconspicuousbyitsnature.This,inturn,makesthemmoreindividualistic.

5. ThemajorityofIndianorganizationsaresmallandmedium-sizedandconsequentsizeoftradeunionsintheseenterpriseshastobesmall.Thepoliticalfragmentationoftheunionmovementalsocontributestoitssmallsize.Thissmallsizeofunionsalsoaccountsfortheirpoorfinancialstrength.

6. Thenatureoflinkagebetweenunionsatdifferentlevelsandpoliticalpartiesvariesagreatdealfromcomplete‘ownership’ofunionsbyparticulartoallowingofdifferentdegreesofautonomytounionsbypartieslikecongressparty.

However,despitevariousweaknesses,unionsinIndiaoftenenjoyedconsiderablepoweratboththenationalandbargaininglevels,especiallytilltheearly1970sorso,becauseoftheirlinkagewithpoliticalpartiesandthesupporttheygotfromthegovernmentsinpower.

Stage VI: Professional Tradition (1990-till Date)

With the passage of time, personnel management has becomemature and professionalized.Professionalmanagement is thatmanagementwheredecision-making restswithprofessionalmanagers,where therehasbeenadivorcebetween capital and control andwhereownersofbusiness are functionless owners.

Specialized formal education:Itrequiresadvanced,specializedformaleducationandtraining.Besides,theyshouldalsohavespecializedinsomedisciplineofmanagement(likeproduction,finance,marketing,personneletc.)

Atthisstage,personnelmanagementbecameaprofessionalfieldofmanagement.

Academic Qualification of Personnel Manager: An occupation in order to be called as a profession shouldpossessadvancedspecializedformaleducationandtraining.

1. Qualificationvariesfromorganizationtoorganizationandfromonestatetoanotherstateofacountry.Ithasundergoneseveralchangesfromtimetotime.Thelistofqualificationincludes Post Graduate degree or diploma in Social Science, Sociology, Social Work,PersonnelManagementandIndustrialRelation,LabourWelfare,LabourLaws,MBAwithspecializationinHumanResourceManagementandIndustrialRelations.


Notes


2. There is no specific educational qualification prescribed for the post of PersonnelManagement in India. Technicalmanagerswithout any experience or qualification arepostedasPersonnelManagersinpublicsectororganizationslikeIndianrailways,BHEL,SAIL.TherehasbeenincreasedimportancetoacquireknowledgeordegreeforthepostofHumanResourcemanager.

Following are the characteristics of professional institution:

1. Professional bodies: A profession is organized as a body with its own experts. Theprofessionals have developed a number of administrative societies, associations andinstitutions,which have a largemembership of thosewho have qualified in personnelaffairs. TheNational Institute ofPersonnelManagement, the IndianLabourEconomicsSociety, All India Management Association, International Personnel ManagementAssociationandAmericanSocietyofPersonnelAdministrationaresomeofsuchbodies.

2. Membersoftheprofessionmustmaintainatalltimesanattitudetowardstheirworkandsociety,be interested, incontinuedacquisitionofskillsandknowledge,haveasenseoftrusteeship,individualinitiativeandarighttoexpertandreceivedfinancialrecognition.

3. Code of Ethics: VariousprofessionslikeMedicine,Accountancyhaveethicalcodes.Butthepersonnel profession does not have such ethical codes.

Itcannot,therefore,beconcluded,fromtheaboveanalysis,thatpersonnelmanagementinIndiacompletelypossessesthecharacteristicstobecalledasaprofession.Thesituationmaychangeintheyearsahead,whereorganizationrequirementsforprofessionallyqualifiedpeoplemightincrease.

Task Arrangeyourselfinsmallgroupsoffourorfivestudentsandcompareandcontrastthedifferencesamongtheorganizationsyouinvestigated.Canyouisolateanyfactorsthatappeartoinfluencehowanorganizationperceivesthevalueofitsemployees?

1.3 HRM Functions

Thefunctionofhumanresourcemanagementistoplan,develop,andadministerpoliciesandprogrammesdesignedtomakeexpeditioususeofanorganization’shumanresources.Itisthatpartofmanagementwhich is concernedwith thepeopleatworkandwith their relationshipwithinanenterprise.Abriefdescriptionofusualhumanresourcefunctionsisgivenbelow:

Human Resource Planning

In the human resource planning function, the number and type of employees needed toaccomplishorganizationalgoalsaredetermined.Researchisanimportantpartofthisfunctionbecauseplanningrequiresthecollectionandanalysisofinformationinordertoforecasthumanresources supplies and to predict future human resources needs. The basic human resourceplanningstrategyisstaffingandemployeedevelopment.

Job Analysis

Jobanalysisistheprocessofdescribingthenatureofajobandspecifyingthehumanrequirements,suchasskills,andexperienceneededtoperformit.Theendproductofthejobanalysisprocessisthejobdescription.Ajobdescriptionspellsoutworkdutiesandactivitiesofemployees.Jobdescriptions are avital sourceof information to employees,managers, andpersonnelpeoplebecausejobcontenthasagreatinfluenceonpersonnelprogrammesandpractices.


Notes


Staffing

Staffingemphasisestherecruitmentandselectionofthehumanresourcesforanorganization.Humanresourcesplanningandrecruitingprecedetheactualselectionofpeopleforpositionsinanorganization.Recruitingisthepersonnelfunctionthatattractsqualifiedapplicantstofilljob vacancies. In the selection function, themost qualified applicants are selected for hiringfromamongthoseattractedtotheorganizationbytherecruitingfunction.Onselection,humanresource functionaries are involved in developing and administering methods that enablemanagerstodecidewhichapplicantstoselectandwhichtorejectforthegivenjobs.

Orientation

Orientationisthefirststeptowardhelpinganewemployeeadjusthimselftothenewjobandtheemployer.Itisamethodtoacquaintnewemployeeswithparticularaspectsoftheirnewjob,includingpayandbenefitprogrammes,workinghours,andcompanyrulesandexpectations.

Training and Development

Thetraininganddevelopmentfunctiongivesemployeestheskillsandknowledgetoperformtheir jobs effectively. In addition to providing training for new or inexperienced employees,organizations often provide training programmes for experienced employeeswhose jobs areundergoingchange.Largeorganizationsoftenhavedevelopmentprogrammeswhichprepareemployeesforhigherlevelresponsibilitieswithintheorganization.Traininganddevelopmentprogrammesprovideusefulmeansofassuringthatemployeesarecapableofperformingtheirjobs at acceptable levels.

Performance Appraisal

Thisfunctionmonitorsemployeeperformancetoensurethatitisatacceptablelevels.Humanresourceprofessionalsareusually responsible fordevelopingandadministeringperformanceappraisalsystems,althoughtheactualappraisalofemployeeperformanceistheresponsibilityofsupervisorsandmanagers.Besidesprovidingabasisforpay,promotion,anddisciplinaryaction,performanceappraisal informationisessentialforemployeedevelopmentsinceknowledgeofresults(feedback)isnecessarytomotivateandguideperformanceimprovements.

Career Planning

Careerplanninghasdevelopedpartlyasaresultofthedesireofmanyemployeestogrowintheirjobs and to advance in their career. Career planning activities include assessing an individual employee’spotentialforgrowthandadvancementintheorganization.

Compensation

Humanresourcepersonnelprovidea rationalmethod fordetermininghowmuchemployeesshouldbepaidforperformingcertainjobs.Payisobviouslyrelatedtothemaintenanceofhumanresources.Sincecompensationisamajorcosttomanyorganizations,itisamajorconsiderationinhumanresourceplanning.Compensationaffectsstaffinginthatpeoplearegenerallyattractedtoorganizationsofferingahigherlevelofpayinexchangefortheworkperformed.Itisrelatedtoemployeedevelopmentinthatitprovidesanimportantincentiveinmotivatingemployeestohigherlevelsofjobperformanceandtohigherpayingjobsintheorganization.


Notes


Benefits

Benefits are another form of compensation to employees other than direct pay for workperformed.As such, thehuman resource functionof administering employeebenefits sharesmany characteristics of the compensation function.Benefits includeboth the legally requireditemsandthoseofferedatemployer’sdiscretion.Thecostofbenefitshasrisentosuchapointthattheyhavebecomeamajorconsideration inhumanresourcesplanning.However,benefitsareprimarilyrelatedtothemaintenancearea,sincetheyprovideformanybasicemployeeneeds.

Labour Relations

Theterm“labourrelations”referstointeractionwithemployeeswhoarerepresentedbyatradeunion.Unionsareorganizationofemployeeswhojointogethertoobtainmorevoiceindecisionsaffectingwages,benefits,workingconditions,andotheraspectsof employment.With regardtolabourrelations,thepersonnelresponsibilityprimarilyinvolvesnegotiatingwiththeunionsregardingwages,serviceconditions,andresolvingdisputesandgrievances.

Record-keeping

Theoldestandmostbasicpersonnelfunctionisemployeerecord-keeping.Thisfunctioninvolvesrecording,maintaining,andretrievingemployee-relatedinformationforavarietyofpurposes.Records which must be maintained include application forms, health and medical records,employment history (jobs held, promotions, transfers, lay-offs), seniority lists, earnings andhoursofwork,absences,turnover,tardiness,andotheremployeedata.Completeandup-to-dateemployeerecordsareessentialformostpersonnelfunctions.Morethaneveremployeestodayhaveagreatinterestintheirpersonnelrecords.Theywanttoknowwhatisinthem,whycertainstatementshavebeenmade,andwhyrecordsmayormaynothavebeenupdated.Personnelrecords provide the following:

Astoreofup-to-dateandaccurateinformationaboutthecompany’semployees.zz

Aguidetotheactiontobetakenregardinganemployee,particularlybycomparinghimzz

withotheremployees.

Aguidewhenrecruitinganewemployee,e.g.byshowingtheratesofpayreceivedbyzz

comparableemployees.

Ahistoricalrecordofpreviousactiontakenregardingemployees.zz

Therawmaterialforstatisticswhichcheckandguidepersonnelpolicies.zz

Themeanstocomplywithcertainstatutoryrequirements.zz

Personnel Research

Allpersonnelpeopleengageinsomeformofresearchactivities.Inagoodresearchapproach,theobjectistogetfactsandinformationaboutpersonnelspecificsinordertodevelopandmaintainaprogrammethatworks.Itisimpossibletorunapersonnelprogrammewithoutsomepre-planningandpost-reviewing.Forthatmatter,anysurveyis,inasense,research.Thereisawidescopeforresearchintheareasofrecruitment,employeeturnover,terminations,training,andsoon.Throughawell-designed attitude survey, employee opinions can be gathered onwages, promotions,welfareservices,workingconditions,jobsecurity,leadership,industrialrelations,andthelike.Inspiteofitsimportance,however,inmostcompanies,researchisthemostneglectedareabecausepersonnel people are too busyputting out fires.Research is not done to put out fires but topreventthem.Researchisnotthesoleresponsibilityofanyoneparticulargroupordepartmentinanorganization.Theinitialresponsibility is thatofthehumanresourcedepartment,which


Notes


howevershouldbeassistedbylinesupervisorsandexecutivesatalllevelsofmanagement.Theassistancethatcanberenderedbytradeunionsandotherorganizationsshouldnotbeignored,butshouldbeproperlymadeuseof.Apartfromtheabove,theHRfunctioninvolvesmanagingchange,technology,innovation,anddiversity.Itisnolongerconfinedtothecultureorethosofanysingleorganization;itskeynoteisacross-fertilizationofideasfromdifferentorganizations.Periodic social audits of HR functions are considered essential. HR professionals have an all-encompassingfunction.Theyarerequiredtohavea thoroughknowledgeof theorganizationanditsintricaciesandcomplexities.TheultimategoalofeveryHRpersonshouldbetodevelopalinkagebetweentheemployeeandtheorganizationbecausetheemployee’scommitmenttotheorganizationiscrucial.ThefirstandforemostfunctionofHRfunctionaryistoimpartcontinuouseducationtoemployeesaboutthechangesandchallengesfacingthecountryingeneral,andtheirorganizationinparticular.Theemployeesshouldknowabouttheirbalancesheet,salesprogress,diversificationplans,restructuringplans,sharppricemovements,turnoverandallsuchdetails.TheHRprofessionalsshouldimparteducationtoallemployeesthroughsmallbooklets,videofilms,andlectures.Theprimaryresponsibilitiesofahumanresourcemanagerare:

Todevelopathoroughknowledgeofcorporateculture,plansandpolicies.zz

To act as an internal change agent and consultant.zz

To initiate change and act as an expert and facilitator.zz

Toactivelyinvolvehimselfincompany’sstrategyformulation.zz

TokeepcommunicationlinesopenbetweentheHRDfunctionandindividualsandgroupszz

both within and outside the organisation.

ToidentifyandevolveHRDstrategiesinconsonancewithoverallbusinessstrategy.zz

Tofacilitatethedevelopmentofvariousorganizationalteamsandtheirworkingrelationshipzz

withotherteamsandindividuals.

Totryandrelatepeopleandworksothattheorganisationobjectivesareachievedeffectivelyzz

andefficiently.

Todiagnoseproblemsandtodetermineappropriatesolutionparticularly in thehumanzz

resources areas.

Toprovideco-ordinationandsupportservicesforthedeliveryofHRDprogrammesandzz

services.

ToevaluatetheimpactofanHRDinterventionortoconductresearchsoasto identify,zz

develop or test how HRD in general has improved individual or organizationalperformance.

ThefollowingaretheninenewfunctionsofHRpractitionerassuggestedbyPatMcLegan:

1. Tobringtheissuesandtrendsconcerninganorganization’sexternalandinternalpeopleto theattentionof strategicdecision-makers, and to recommend long-termstrategies tosupportorganizationalexcellenceandendurance.

2. TodesignandprepareHRsystemsandactionsforimplementationsothattheycanproducemaximumimpactonorganizationalperformanceanddevelopment.

3. Tofacilitatethedevelopmentandimplementationofstrategiesfortransformingone’sownorganizationbypursuingvaluesandvisions.

4. Tocreatethesmoothestflowofproductsandservicestocustomers;toensurethebestandmostflexibleuseof resources and competencies; and to create commitment among thepeoplewhohelpustomeetcustomers’needswhetherthosepeopleworkdirectlyfortheorganizationornot.


Notes


5. Toidentifylearningneedsandthendesignanddevelopstructuredlearningprogrammesandmaterialstohelpacceleratelearningforindividualsandgroups.

6. To help individuals and groups work in new situations and to expand and changetheirviewssothatpeople inpowermovefromauthoritariantoparticipativemodelsofleadership.

7. Tohelppeopleassesstheircompetencies,values,andgoalssothattheycanidentify,plan,andimplementdevelopmentactions.

8. Toassistindividualstoaddvalueintheworkplaceandtofocusontheinterventionsandinterpersonalskillsforhelpingpeoplechangeandsustainchange.

9. ToassessHRDpracticesandprogrammesandtheirimpactandtocommunicateresultssothattheorganizationanditspeopleacceleratetheirchangeanddevelopment.

TherearefourfunctionswhichHRplay,accordingtoDaveUlrich.Thefirst,strategicpartnerfunction-turningstrategyintoresultsbybuildingorganizationsthatcreatevalue;thesecond,achangeagentfunction-makingchangehappenand,inparticular,helpithappenfast;thethird,anemployee champion function-managing the talentor the intellectual capitalwithinafirm;and the fourth, an administrative function-trying to get things to happen better, faster andcheaper.Humanresourcemanagementhasreceivedtremendousattention inrecentyears. Itsfunctioninorganizationshasalsoundergoneasubstantialchangeandmanyorganizationshavegraduallyorientedthemselvesfromthetraditionalpersonnelmanagementtoahumanresourcemanagementapproach,althoughmanyseeitasthe“oldwineinanewbottle.”ThebasicapproachofHRMistoperceivetheorganizationinitstotality.Itsemphasisisnotonlyonproductionandproductivitybutalsoonthequalityoflife.Itseekstoachievethefullestdevelopmentofhumanresourcesandthefullestpossiblesocio-economicdevelopment.

Tosumup,HRMfunctionscanbeassimilatedasfollows:

Pervasive force function: zz HRM is pervasive in nature. It is present in all enterprises. It permeatesalllevelsofmanagementinanorganization.Allmanagers,infact,arehumanresourcemanagers.AtInfosys,forexample,everymanagerisexpectedtopayattentiontothedevelopmentandsatisfactionofsubordinates.

Action oriented function: zz HRMfocusesattentiononaction,ratherthanonrecordkeeping,written procedures or rules. The problems of employees at work are solved throughemployee-friendlypolicies aimedat eliminating tension-points, resolving controversies,securingcooperation—withaclearintenttomoveclosertotheheartsofpeople.

Individually oriented function: zz Ittriestohelpemployeesdeveloptheirpotentialfully.Itencouragesthemtogivetheirbesttotheorganization.Employeesarenottreatedassecondclasscitizensbutasvaluedmembersofanindispensableteam.Everyattemptismadetomakethemfeelimportant.

People oriented function: zz HRMisallaboutpeopleatwork,bothasindividualsandgroups.It tries to put people on assigned jobs in order to produce excellent results. The resultant gains are used to reward people andmotivate them toward further improvements inproductivity. Ultimately, employees should receive satisfaction equal to that of thecompany.

Future oriented function: zz Effective HRM prepares people for current as well as future challenges, especiallyworking in an environment characterized by dramatic change. Itis firmly believed that employees, not the buildings andmachinery, give a company acompetitiveadvantage.

Development oriented function: zz HRMintendstodevelopthefullpotentialofemployees.Therewardstructureistunedtotheneedsofemployees.Trainingisofferedtosharpenand


Notes


improvetheirskills.Employeesarerotatedonvariousjobssothattheygainexperienceandexposure.Everyattemptismadetousetheirtalentsfullyintheserviceoforganizationalgoals.

Integrating mechanism function: zz HRMtriestobuildandmaintaincordialrelationsbetweenpeopleworkingatvariouslevelsintheorganization.Inshort,ittriestointegratehumanassetsinthebestpossiblemannerintheserviceofanorganization.

Comprehensive function: zz HRM is, to some extent, concerned with any organizationaldecision which has an impact on the workforce or the potential workforce. The term‘workforce’ signifies peopleworking at various levels, includingworkers, supervisors,middle and topmanagers. It is concernedwithmanagingpeople atwork. It covers alltypesofpersonnel.Personnelworkmaytakedifferentshapesandformsateachlevelintheorganizationalhierarchybutthebasicobjectiveofachievingorganizationaleffectivenessthrough effective and efficient utilization of human resources, remains the same. “It isbasicallyamethodofdevelopingpotentialitiesofemployeessothattheygetmaximumsatisfactionoutoftheirworkandgivetheirbesteffortstotheorganization”.(PigorsandMyers)

Auxiliary service function: zz HRdepartmentsexisttoassistandadvisethelineoroperatingmanagerstodotheirpersonnelworkmoreeffectively.HRmanagerisaspecialistadvisor.It is a staff function.

Inter-disciplinary function: zz HRMisamulti-disciplinaryactivity,utilizingknowledgeandinputsdrawnfrompsychology,sociology,anthropology,economics,etc.Tounravelthemysterysurroundingthehumanbrain,managers,needtounderstandandappreciatethecontributionsofallsuch‘soft’disciplines.

Continuous function: zz AccordingtoTerry,HRMisnotaoneshotdeal.Itcannotbepracticedonlyonehoureachdayoronedayaweek.Itrequiresaconstantalertnessandawarenessofhumanrelationsandtheirimportanceineverydayoperations.

1.4 HRM Policies and Principles

Apolicyisapredeterminedcourseofactionestablishedasaguidetowardsacceptedobjectivesandstrategiesoftheorganization.

Did u know? Why Develop a Policy?

Policymanualsaredevelopedtohelpstaffandmanagementteamsruntheorganization.Inbestusesituations,policiesplayastrategicroleinanorganization.Theyaredevelopedinlightofthemissionandobjectivesofthecompanyandtheybecomethemediabywhichmanagement’s plans, rules, intents, and how to run its HR processes, HR policies aredocumentedandcommunicatedtoallstaff.Carefullydraftedandstandardizedpoliciesandproceduressave thecompanycountlesshoursofmanagement time.Theconsistentuse and interpretation of suchpolicies, in an evenhanded and fairmanner, reduce themanagement’sconcernabout legal issuesbecoming legalproblems.Theyshouldbe thefirstthingsgiventoanewemployee(eitherinhardcopyofanelectronicversion).

Manypeoplethinkoforganizationpoliciesinanegativelight:asameanstocontrolemployeebehaviour. However, there is a more positive side to policies. They can actually empoweremployees. It is true that many policies seem restrictive in nature andmany need to be topromotegoodinternalcontrol.However,policiesalsoprovidestaffwithadegreeoffreedomwithindefinedboundaries.Withgoodpoliciesinplace,thestaffisabletoexecutetheirduties;theyarefreetoactwithinthelimitssetbypolicy;withoutconstantmanagerialoversight.Inthatway,policiesempoweremployeestodotherightthing.


Notes


1.4.1 Reasons for Adopting Personnel Policies

Withtheemergingtrendsandnewconceptsindoingbusiness,thereareampleopportunitiesfortheemployeestofindemploymentandlookforgreenerpastures.Therefore,organizationsneedtogearupandframecertainpolicieswhichleadtobetterandefficientinattractingandretainingitsemployees.Thereasonsfortheformulationofpoliciescanbeunderstoodasfollows:

1. Uniformity throughout the organization: Policies provide a framework where allemployeesaretreatedequally.Inequalitiesintermsofgender,race,religion,caste,agearenotconsideredinmanagementofhumanresources.AndsinceHRpoliciesaredocumentedandknowntoall,therecanbenodiscrimination.Undersuchpolicies,allemployeesaretreatedequally.Thus,favouritism,nepotism,discriminationshavenoplace.

2. Standard of performance: HRpoliciesserveasayardstick tomeasure theperformance.Standardsarelaidout,clarityofgoalsandtheexpectedperformanceiscommunicatedtoalltheemployeesthroughpolicies.Theyactlikeguidelinesforstandardperformance.Anydiversionfromtheexpectedperformanceismeasuredandcorrectiveactionsaretaken.

3. Resolve conflicts: Sincetheyactasuniversallaw,anytypeofinter-personnelconflictsareresolved on the basis of universal application.

Examples: 1. Place the right person in the right place.

2. Traineveryoneforthejobtobedone.

3. Makeanorganizationacoordinatedteam.

4. Supplyrighttoolsandcondition.

5. Lookaheadandplanforbetterthings.

1.4.2 Benefits of Policy Formulation

1. HRpoliciesareasetofwrittenguidelinesforhumanresourcedecisions.Hencetheyactas reference tool for takingHRrelateddecisions. In fact, theprocessofdevelopingHRpoliciesisitselfbeneficial.Theprocessthatthecompany’smanagementteamundergoeswhencomparingthepolicyalternatives,understandingtheirimportance,andevaluatingyourcompany’scurrentpracticeswillhelpyoutodevelopyourcompany’sguidelinesandproceduresthatwillmakeyourorganizationabetterrunentity.

2. A policy manual is a means of communication with employees; it is first a way tocommunicatetoemployeesthemanagementrulesandguidelinesoftheorganizationaredocumentedandhenceactasreferencetools.

3. Inaddition,policieshelptoorganizeandannouncemanagement’splansforgrowth,andthey communicate the company’s investment in its employees by explaining employeebenefitsandworkplaceissues.

4. As a company’s policies are developed, they become a framework for consistency andfairness. Policies define management’s standards for making decisions on variouspersonnelandorganizationalissues.Clearlydefinedproceduresandstandards,spawnedfrompoliciesthatarewellthoughtout,expressthecompany’sintenttomakeconsistentand evenhanded decisions.

5. Itistruethatpolicycanhelpanorganizationrunatitsmostefficientandeffectivelevel.Thatalonemaybringvaluethroughcostsavingsandadditionalrevenue.However,ifdonecorrectly,policiescanbringmorevaluebyaccuratelyreflectingthecompany’sphilosophyofbusinessandemployeerelationsastheydemonstrateyourcreativityinsolvingpolicy


Notes


issues,thecompetitivepositionofthecompanyinprovidingavarietyofemployeebenefits,andrespectandappreciationforhumanresourcemanagement.Thistypeofmessagecangoalongwaytowardspromotingemployeesatisfactionandorganizationgrowth.

6. Thereisalsoalegalaspectofpolicies.Theyareameanstoprotectthelegalinterestsofacompany.The company’spoliciesandprocedures inmanyways,define the rightsandobligationsoftheemployeeandthecompany.Thepolicymanualisanexpressionoftherulesgoverning theemployment relationship.Today,more thanever,a companymustprotectitsrightswithinthatrelationshipbyadoptingpoliciesthatarefairtobothsides,clearlystated,andlegallypermissible.

7. With regards to the legal aspects of policy creation, there is one important caution. Ifyourcompany’semployeesarerepresentedbyalabourunion,anycollectivebargainingagreement(CBA)betweenyouandtheunionwill,ineffect,serveasapolicymanualwithrespecttoemployeeissuescoveredbytheCBA.Inthiscase,employermayutilizeapolicymanualthatcoversnon-unionemployees.

Did u know?Policiesareframedinthefollowingcategories:

Employment Policies: Thesearethepoliciesthatguidehiringpractices,orientationofnewemployees,compliancewithemploymentlaws,andconfidentiality.

Employment Status and Records: These are the policies that define such issues asemployment classifications, access topersonnelfiles andguidanceonhowbackgroundchecksandperformancereviewsaretobeperformed.

Employee Benefits: Thesearepolicies thatexplainemployeebenefits suchas insurance,vacations,holidays,leave,andemployeereimbursements.

Payroll: Thesearepolicies thatarerelatedtosalaryandwageadministrationincludingdeductions,payadvances,andtimekeeping.

Workplace Guidelines: These policies are quite varied and their purpose range fromdefining certain work arrangements such as flex time and telecommuting to offeringguidelinesontheuseofcompanyassetsandrecordretention.

Employee Conduct: These policies are guidelines that control employer behaviour andconductonthejob.Themainstayofthissectionisacodeofconductbutalsoimportantarethepoliciesregardingsubstanceabuse,smoking,harassment,andworkplaceviolence.

E-Policies: Thesepoliciesguidestaffintheuseoftheorganization’sinformationtechnology.Policiesdefiningacceptableandprohibitedactivitiesanduseofe-mailandthe Internetmakeupamajorityofthesepolicies.

Theonlyeffectiveway fora company toprotect itself isbydevelopingclearlywritten,comprehensive e-policies that explicitly regulate the use of software, e-mail, and theInternet.

1.4.3 Factors Considered for Policy Development

1. Organization Culture: Organization’s culture is an important determinant to theformulationofHRpolicies.Organizationalattitudestowardspoliciesspanthespectrum.Ononeendofthescalearethecompaniesthathaveapolicyforeverything.BankingisalotlikethatU.S.banksarestill(despitebankingderegulationeffortsduringthe1980s)highlyregulatedentitiesandpoliciesareneededtocontrolallaspectsofoperations.Attheotherendofthespectrumarethecompaniesthathaveonlyafewpolicies(onlythose


Notes


requiredbythelawsthatarerelevanttothatcompany).Mostcompaniesfallsomewhereinbetweenthesetwoextremes.Themanagerwritinganypolicyneedstounderstandwhereonthespectrumthecompanyfallsandhowthepolicycanbemadetofittheorganization’sculturetoenhancecompliance.

2. Support from Employees: Enhancing compliance to policies also begins with staffparticipation. One lesson learnt by the vast number of organizations that have gonethroughprocessreengineeringisthatnewpoliciesaremorereadilyadoptedandfollowedbythestaffwhenthestaffhashadsomesignificantroleintheirdevelopment.Presentthesesectionsasdraftsandsolicitfeedbackandthenincorporaterevisionsintothesectionsandyouwillmaximizethechanceofcompliancetoyourpolicy.Employeesandmanagersatalllevelswillbemostlikelytosupportapolicythatmakessense,iseasytofollow,andminimizesinterferencewithgettingthejobdone.Thebestwaytogetsuchapolicyistohaveallaffectedpartiesinvolvedinthedevelopmentprocess.Notallowingparticipationatthepolicycreationstageisafrequentdownfallofimplementationandcompliance.

Supportcanalsobeenhancedifthepolicy’simpactonthecompanyisclearlyexplained;theimpactthatwillbemostmeaningfultomanagersisthefinanciallossthatcanresultfromfailingtoimplementthepolicy.Theidealsituationiswhenmanagementandstaffcanseehowaparticularpolicyhelpspromotetheachievementoforganizationalobjectivesandmission.

3. The Role of Procedures and Forms:Manypeopleconfuseprocedurewithpolicy.Apolicyisapre-determinedcourseofactionestablishedasaguidetowardsacceptedobjectivesandstrategiesoftheorganization.Itisatamuchhigherlevelthanaprocedure.Proceduresaremethods–theyarewaysofcarryingoutapolicy.Formsmaybepartofaprocedure;inotherwords,tocarryoutaprocedure,itmaybenecessarytocompleteoneormoreforms.Forexample,yourorganizationmayhaveapolicythateveryemployeewhoisterminatedorwhodecidestoleavetheorganizationparticipatesinanexitinterview.Procedurescanbedevelopedonhowthatinterviewshouldbeconducted,whileaformorchecklistcanhelpassureanddocument thataparticularexit interviewwascarriedoutaccording topolicies and procedures.

The connection of policy-to-procedure-to-form raises another important point: policydevelopment needs to be coordinated with procedures and forms management. Newpolicies or revisions to oldpoliciesmay spawnnewprocedures.Newproceduresmayrequirerevisionofoldformsorthecreationofnewones.

4. Clarity, Conciseness, and Coherence:HRpoliciesshouldfollowthe3cprinciple:clarity,conciseness,andcoherence.Clarityisextremelyimportant.

Clearwritingisunderstandableandeasytoread.Ifyourwritinghasclarity,yourreaderwillimmediatelygraspyourmeaning;heorshewillnothavetostopandfigureoutmeaning.HRpoliciesshouldbeclearanddirect.Careshouldbetakentoremovetheunnecessarywords.Delete redundancies, needlessphrases, overblownphrases, and clichés. ForHRpolicytobeclearandforsubsequentprocedurestobeexact,eachandeverypolicythatyouwriteshouldcontainaccurateandcompleteinformationexpressedconcisely.Coherenceisaboutgoodlogic,linkingsentences,anddiscerniblethreadsofthought.Coherentwritingwill leadthereaderthroughyourpolicymanual. It letsyougiveaguidedtourofyourpolicymodel.

5. Training:Trainingemployeesintheareaofpolicyisveryimportant.Makingthepolicymanual available to staff is a starting point but it is not enough. To help staff to fullyunderstand policies, they may need to see and hear a presentation — an interactiveexperiencethatgoesbeyondthedocument,e-mail.


Notes


1.4.4 Distributing New Policies

Whenapolicyorpolicymanualhasbeenapproved,itistimetodistributethedocument.Itcanbesenteitherasaprinteddocumentorviaelectronicdistribution(e-mailorwebsite).

Printed Manual

Theprintedmanualmustbemadeavailabletoallemployeesoftheorganizationforitsfullvaluetoberealized.Manyorganizationsprovidestaffwithapolicymanualinabinderofsometype.Onecommontypeofbinder is the loose-leaf.The loose-leaf,alsoknownasthestandardringbindermakes iteasy to insertnewpoliciesandreplaceones thathavebeenrevised.Usually,adistributionmemoorlettershouldaccompanynewpolicies(oranewmanual).Theletterormemo(orinthecaseofelectronicdistributionane-mailmessage)shouldcontainasummaryofwhatisbeingdistributed(i.e.revisedpolicy,newpolicy,newtableofcontents,ornewmanual).

Anotherwayofintroducinganewpolicyorpolicymanualisthroughabulletinornewsletter.Abulletinisanofficialcommunicationmediumoftheorganizationusedtocommunicateitemsofgeneralinterest.Bulletinscanbepostedonbulletinboardsorcanbemailedtoeachemployee.Anorganizationalnewslettercanalsoannounceandsummarizeanewpolicyorpolicymanual.

Electronic Distribution of Policies

Policies canalsobedistributedelectronically. Sincee-mail is soprevalent inorganizations, itmakessensethatmostelectronicdistributionsofpoliciesbeginwithane-mailmessage.Herearesomeexamples:

1. Ane-mailtoallemployeesannouncinganewpolicy.

2. Ane-mailwithalinktoawebsiteannouncinganewpolicyoronlinepolicymanual.

3. Nocostforpaper,printing,orphysical(mailorinter-officemail)distribution.

4. Shorterpublishingcycle.Youcanputamanualuponthewebmuchfasterthandistributingaprintedmanualtoallstaff.

5. Searchandhypertextcapabilities.

1.4.5 Principles of HRM

Thewordprinciplemeans,thefundamentaltruthorlawasbasisofreasoningoractions.Humanresourcemanagementisaveryextensiveareaofoperation,thereshouldbecertainprinciplesorlawsthroughwhichtheycanbegoverned.Theseprinciplesarelaiddownwithanobjectivethatitprovesasaguideforalltypesoforganizations.

1.4.6 Characteristics of Principles

Thecharacteristicsoftheseprinciplesshouldbethattheyareuniversallyapplicableandareeasytobefollowedinanytypeoforganization.TheHRprinciplesare:

1. Afundamentaloruniversaltruth.

2. Generallyapplicabletooriginations.

3. It guides managers in formulating policies, programs and procedures. For example,principlesoffairremuneration,principlesofscientificselectionofworkers.

4. Itisapplicableatalllevelsoftheorganization.

5. Itisdynamicinnatureandleadstoemployeemotivationandsatisfaction.


Notes


1.5 Role of a Personnel Manager

Theroleofpersonnelmanageriseverexpandingandisstrengthenedbygreaterconcernshownbythemanagementinsolvinghumanrelationsproblembyspecialistssuchasbehaviouralscientist,industrialengineers,socialpsychologists,legaladvisorsetc.Theidealpersonnelmanagerisnota“decision-maker”butacounsellor,andanadvisortohelpmanagementmakebetterdecisions.

1. AdvisoryRole

2. Counselor Role

3. Mediator Role

4. Representative Role

5. Clerical Role

6. Legal Role

7. WelfareRole

8. ProblemSolver

9. DecisionMakerRole

10. Executive Role

Dr C BMamoria, in his book “Personnel Management”, has identified the following roles ofpersonnelmanager:

Personnel Role

1. Advisory–advisingmanagementoneffectiveuseofhumanresources.

2. Manpowerplanning–recruitment,selectionetc.

3. Traininganddevelopmentoflinemen.

4. Measurementandassessmentofindividualandgroupbehaviour.

Welfare Role

1. Researchinpersonnelandorganizationalproblems.

2. Managingservices–canteens,grainshops,transport,co-operatives,crèchesetc.

3. Groupdynamics–groupcounseling,motivation,leadership,communication,etc.

Administrative Role

1. Time-keeping

2. SalaryandWageadministration–incentives

3. Maintenance of records

4. Humanengineering–Man-Machinerelationship

Fire-fighting Role

1. Grievance handling

2. Settlementofdisputes


Notes


3. Handlingdisciplinaryactions

4. Collective bargaining

5. Joint consultation

Self Assessment

Multiple Choice Questions:

1. Theratioofanorganisation’soutputtoitsinputs.

(a) Efficiency (b) Performance

(c) Productivity (d) Objectivity

2. The process of bringing people and organisations together so that the goals of each are met.

(a) Careerplanning (b) Employeewelfare

(c) Humanresourcemanagement (d) Training

3. Productivitycanbedefinedastherationofoutputto........................

(a) Organization (b) Capital

(c) Input (d) Labour

4. Theprocessoffindingandattractingcapableapplicantsforemployment.

(a) Selection (b) Recruitment

(c) Management (d) HRM

5. WhichofthefollowingisnotatypeofHRpolicy?

(a) Appealed (b) Specific

(c) Implied (d) Revealed

6. WhichofthefollowingisnotacharacteristicofHRMfunctions?

(a) Continuousfunction (b) Integratingmechanism

(c) Comprehensivefunction (d) Pastilluminating

1.6 System Approach to Human Resource Management

Asystemisasetofinterrelatedbutseparateelementsorpartsworkingtowardacommongoal.Auniversity, forexample, ismadeupofstudents, teachers,administrativeandlaboratorystaffwhorelatetooneanotherinanorderlymanner.Whatonegroupdoeshasseriousimplicationsforothers.So,theyhavetobecommunicatingwitheachotherinordertoachievetheoverallgoalofimpartingeducation.Theenterpriseoperations,similarly,mustbeviewedintermsofinteractingandinterdependentelements.Theenterprisesprocureandtransforminputssuchasphysical,financialandhumanresourcesintooutputssuchasproducts,servicesandsatisfactionsofferedtopeopleatlarge.Tocarryoutitsoperations,eachenterprisehascertaindepartmentsknownassubsystemssuchasproductionsubsystem,financesubsystem,marketingsubsystem,HRsubsystem,etc.Eachsubsystemconsistsofanumberofothersubsystems.Forexample,theHRsubsystemmayhavepartssuchasprocurement,training,compensation,appraisal,rewards,etc.


Notes


1.7 HR Relationship with other Departments

HRisaservicedepartmentitneedstoprovideitsservicestoalldepartmentsforfollowing:

Recruitmentzz

PerformanceAppraisalzz

Traininganddevelopmentzz

CompensationDesign–foralldepartmentszz

EmployeeFeedback–withsurveytechniquezz

Communicationszz

Motivational Eventszz

HRdepartmentservicesforother.Theyrecruitworkersforotherdepartments,andthantraining.HRwillhavetohaveagoodrelationshipwithall thedepartments inanorganization.FirstlypeopleofvariousdepartmentsarerecruitedbyHRandhence it startswithfindingoutwhatthedepartmentisallabout,howitfunctions,whatarethekindofresourcesneededetc.TheninCoreHRoperationsaswell,HRneedstoconnectwiththeotherdepartmentsforpayroll,leaves,confirmation,rewardsandrecognitionetc.

HRisonewhichbuildsandbindswiththeotherdepartmentsandcontinuouslyworkswiththemtoachievethecompany’sgoalsandobjectives.

It is rightlysaid that thesuccessandfailureofanorganization isdirectlyproportional to therelationshipsharedamongtheemployees.Theemployeesmustshareacordialrelationotherwisetheywouldalwaysendupfightingwitheachother.Nothingispossiblewithouttrust.Youneedtotrustpeopletoexpectthebestoutofthem.Trustonlycomeswhenyouarecomfortablewiththe other person. An individual can’t always take decisions alone. Employees together candiscussthingsamongthemselves,comeoutwithinnovativeideasandaccomplishthetasksatamuchfasterrate.

Ahumanresourceprofessionalplaysakeyroleinbindingtheemployeestogether.He/shemustundertake certain activitieswhichhelp in strengthening thebond among the employees andbringthemcloser.

TheindividualtakingcareoftheHRactivitiesplaysakeyroleininvolvingalltheemployeesinto somethingproductivewhichwouldgive themanopportunity to knoweachotherwell.Individualsare soengrossed in theirdaily routinework that theyhardlyget time to interactwith eachother.Manyof themdon’t evenknow the fullnamesof theperson sittingnext totheirworkstations.Thehumanresourcedepartmentmustensurethatseveralgroupactivitiesarebeingorganizedattheworkplacetobringallemployeesonacommonplatform.

Research says that if the employees are satisfiedwith their job responsibilities, they tend toremainhappyandavoidconflictswitheachother. Individualsdevelopa feelingof trustandloyaltytowardstheirorganizationanddon’twastetheirtimeandenergyinunproductivetasks.

There aremany responsibilities that non-HRdepartment need to joint it.However, inmanyorganizations,non-HRdepartmentdonotsupportHRdepartmentaswellasHRdepartment.

Therefore,HRinteractswithalldepartments.Theobjective is toensurethathumancapital isacquired,developedandretained-thisiswiththeobjectivethatorganizationisabletoachieveitsobjectivesandpeopletoachievetheiraspirationsandambitions.


Notes


ThescopeofHRMisverywide.Infact,noorganisationalactivityiscompletelyremovedfromhumans.(Evenautomaticprocessesandequipmentaredesignedandimplementedbysomeone!)Capableandmotivatedpeoplecanhaveaprofoundimpactoneverythinganorganisationdoes.Researchinbehaviouralsciences,newtrendsinmanagingknowledgeworkersandadvancesinthefieldoftraininghaveexpandedthescopeofHRfunctioninrecentyears.TheIndianInstituteofPersonnelManagementhasspecifiedthescopeofHRMthus:

Personnel aspect:zz This is concerned with manpower planning, recruitment, selection,placement, transfer, promotion, training and development, lay off and retrenchment,remuneration,incentives,productivity,etc.

Welfare aspect:zz Itdealswithworkingconditionsandamenitiessuchascanteens,crèches,restandlunchrooms,housing,transport,medicalassistance,education,healthandsafety,recreationfacilities,etc.

Industrial relations aspect:zz Thiscoversunion-management relations, jointconsultation,collectivebargaining,grievanceanddisciplinaryprocedures,settlementofdisputes,etc.

1.8 E-HRM

E-HRMis,inessence,thedevolutionofHRfunctionstomanagementandemployees.Theyaccessthesefunctionstypicallyviaintranetorotherweb-technologychannels.Itisaweb-basedsolutionthattakesadvantageofthelatestwebapplicationtechnologytodeliveranonlinerealtimeHRMsolution. It iscomprehensivebuteasytouse, feature-richyetflexibleenoughapproachtailedtomeetspecificneedsofanorganization.Thus,E-HRMisafullyintegrated,organization-widenetworkofHR-relateddata,information,services,databases,toolsandtransactions.

E-HRM has the potential to change all traditional human resource management functions.Employeesdonothavetobeinthesamegeographicareastoworktogether.Useoftheinternetletscompaniessearchfortalentwithoutgeographiclimitations.Recruitingcanincludeonlinejobpostings,applications,andcandidatescreeningfromthecompany’swebsiteorthewebsitesofcompaniesthatspecializeinonlinerecruiting,suchasmonster.comorhotjobs.com.Employeesfrom different geographical locations can all receive the same training over the company’sintranet. It also can increase the speedwithwhich employees canbringaproduct tomarketbyfacilitatingcommunicationsbetweenemployeesonvirtual teamsusinginternetdiscussionforums, video and audio-conferencing, and global-scheduling. Line managers—through theuse of E-HRM can carry out performance appraisals, evaluate employee costs, generate HRreportsregardingturnoverandabsenteeism,processtrainingrequestsandoverseecompetencemanagement.AgrowingnumberoforganizationsarecurrentlyusingE-HRMinordertoreducecostsandofferimprovedHRservicesatafasterpace.

1.8.1 Objectives of E-HRM

E-HRM is designed to achieve the following objectives:

Toofferanadequate,comprehensiveandon-goinginformationsystemaboutpeopleandzz

jobsatareasonablecost;

Toprovidesupportforfutureplanningandalsoforpolicyformulations;zz

Tofacilitatemonitoringofhumanresourcesdemandandsupplyimbalances;zz

Toautomateemployeerelatedinformation;zz

To enable faster response to employee related services and fasterzz HR related decisions and;


Notes


Toofferdatasecurityandpersonalprivacy.Datasecurityisatechnicalproblemthatcanzz

bedealtwithinseveralways,includingpasswordsandelaboratecodes.Intheinformationagepersonalprivacyisbothanethicalandmoralissue.(Linda2008)

1.8.2 Types of E-HRM

E-HRM,it isworthmentioninghere,isnotthesameasHRIS(HumanResourceManagementSystem)whichreferstoICTsystemsusedwithinHRdepartments.NorisitthesameasV-HRMorVirtualHRM–which isdefinedbyLepakandSnellas“...anetwork-basedstructurebuiltonpartnerships and typicallymediatedby information technologies tohelp theorganizationacquire, develop, anddeploy intellectual capital.” There are three tiers of E-HRM.These aredescribedrespectivelyasOperational,RelationalandTransformational.

1. OperationalE-HRMisconcernedwithadministrative functions -payrollandemployeepersonaldataforexample.

2. RelationalE-HRMisconcernedwithsupportingbusinessprocessesbymeansoftraining,recruitment,performancemanagementandsoforth.

3. Transformational E-HRM is concernedwith strategic HR activities such as knowledgemanagement, strategic re-orientation. An organisation may choose to pursue E-HRMpoliciesfromanynumberofthesetierstoachievetheirHRgoals.

1.8.3 Scope of E-HRM

According toMichael Armstrong [2003] “The e-HR provides the information required to manage HR processes.” Thesemaybecoreemployeedatabaseandpayroll systemsbutcanbeextendedto include such systems as recruitment, e-learning, performance management and reward.The systemmay beweb-based, enabling access to be remote or online and at any time. Theinformationprovidedbythee-HR process can becommunicatedacrossorganisations.Ifpostsstaticdata suchas informationonHR policiesandcommunicationsabout employer facilitiessuch as learning opportunities and flexiblebenefits.Itcanincludelinksthatenablemanagersandotheremployeesto interfacedirectlywithHR applicationsandmakechangesorenquiries.TheoutcomesofE-HRMcouldbemultifarious:

Adecisivesteptowardsapaperlessoffice;zz

Higherspeedofretrievalandprocessingofdata;zz

Increased access to zz HR dataandeaseinclassifyingandreclassifyingdata;

Collectionofinformationasthebasisforimprovingthestrategicorientationofzz HRM;

Moreconsistentandhigheraccuracyofinformation/reportgenerated;zz

Fastresponsetoanswerqueries;zz

Ahigherinternalprofileforzz HR leadingtobetterworkculture;

Establishingofstreamlined,standardizedandsystematicprocedures;zz

Moretransparencyinthesystem;zz

Costsavingsachievablethroughprocessimprovementsandduetoreductioninduplicationzz

ofefforts;

Significantreductionofadministrativeburden;zz

Adaptabilitytoanyclientandfacilitatingmanagement;zz


Notes


Integralsupportforthemanagementofhumanresourcesandallotherbasicandsupportzz

processeswithinthecompany;

Amoredynamicworkflowinthebusinessprocess,productivityandemployeesatisfaction.zz

Thedevelopmentofe-HR systemsisgrowing– inrecenttimes–allowingtheHR function to becomemorestrategic.Thiscanmosteasilybeobservedbythefactthattodayemployeestendtoaskforadviceratherthanadministrativeassistance.Thisisthereverseofthesituationinthelate90s.Furthermore,thenatureofHR departmentshaschangedbecauseofthedevelopmentofe-HR.Afewyearsagobusinessestendedtohavemore,butlessqualifiedHR staffwhereastodaythesituationhaschangedcompletely (Linda).AccordingtoHunNamChung[2003]“today’strendisadoptingmeasurement-basedmanagementwithemphasisonorganisationalobjectivesandperformancemetrics,e-HR solutions that provide such features along with best practices should be able to deliver results. Once this HRinfrastructureisputinplace,youmayembracevirtualworkplaceinitiativetosupporttheincreasinglydynamicandmobileworkforce”.

1.8.4 E-HRM: Advantages and Limitations

ImprovedservicequalityanddeliveryofefficientserviceatanamazingspeedaretheprincipalbenefitsofE-HRM.EmployeesgetadirectaccesstorecordsandtheyarenolongerdependentonHRdepartmentfortakinginformeddecisions.

EverythingisstandardizedandisplacedontheWebforeveryoneelsetofollowandgetbenefited.Quick access to relevant information helps employees to take informed decisions withoutanyone’s help or assistanceHR can focus attention on critical aspects and deliver improvedservicetoemployeesatafasterpace.Issuesofgreatimportancesuchasappraisals,payincreases,bonusentitlementscannowbehandledwithgreatereaseandcomfort.Recordsrelatingtoleaves,benefits, accidents, discipline reports etc. can be generated and controversies overmundanematterscouldbeputtorestquickly.Theprocessingtimeisalsocutdowndrastically.

ImportantHRfunctionssuchasrecruitment,selection,traininganddevelopmentcouldbecarriedoutusingweb-basedtechnologies–leadingtosignificantsavingsincost,timeandeffort.Trainingopportunitiescanbeexploitedbyeligiblecandidatesquickly.Approvalsforimportantactivities–fromvariousdepartmentalanddivisionalheads–couldbeobtainedelectronically.ThisreducestheworkloadoftheHRdepartmentsquitesignificantly.Forexample,throughuseofe-leave,theemployeegetstheapprovalquickly,thedepartmentalheadgetsalertedintimeandthedatagetsupdatedintherecordssimultaneouslywithoutanyhindrancesofanykindanywhere!

TheHR department is able to cut down costs by automating everything. It is able to focusattention:managingworkforcewithrightportfolioofskillsandknowledge;andmanagerewardprogrammes to attract, motivate and retain skilled workers. There is no need to print anddisseminateinformationtoemployeesfromtimetotime.

The organisation can grow to a gigantic size, operate from multiple locations, select andtrainpeople fromanywhereandhandlebundlesofemployeedatabyhavingonevirtualHRdepartment!Itcanreactfairlyquicklytoacontinuallychangingbusinessstructure.Itcanalsoobtainhumancapitalinformationfromanywhereintheworld.

According to WatsonWyatt [2006] E-HR liberates human resources from its administrativeshackles and provides the foundation for a collegial, flexible work place where employeeshave easy access to communication tools. The use of internet and web technology has alsoliberated management to re-assume its abdicated role of day-to-day people managementwithout the endless wait for HR toeventuallyprocess requests for information,and/orswiftpeoplemanagementdecisions.Hopefullythiswillleadtothe“extinction” oftheoldtypeofHRpractitionerwhopubliclyproclaimstheneedtooutsourceHR administrationbecauseitistoocomplexandarduoustohandlein-house.


Notes


E-HRM,ofcourse,isnotalwaysonthecreditsideoftheledger.TheinvestmentinE-HRMcouldturnouttobequiteexpensive.Workingwithcomputersandthelatesttechnologiesmayprovetobeuncomfortableforthosewhoarenotfullygeareduptothechallenge.Qualityinformationthatisinsyncwithclient’srequirementsisafunctionofhowadequatelythepeoplehandlingthehardwareandsoftwarearetrainedandequipped.Anygapsinthisregardmaycomeinthewayofreapingthebenefitsofthesystem.

Task TheStateBankofIndiahadbeenconcentratingmoreonsocialbanking,aspartofitssocialobligations.Withtheadventofmodernbankingsystem,andcompetitionfromprivate/foreignbanking,SBIhasbeencompelledtocomputeriseitssystemsandintroducemodernbankingfacilities.Thisresultedinidentificationofexcessmanpower.Therefore,SBIdownsized itsworkforce throughVoluntaryRetirementScheme.NowSBI is facedwith two challenges: (a) tomotivate existing employees to shoulder the total bankingwork;(b)ademandforsecondboutofVRS.

IfyouareinchargeofHRDepartment,howwouldyouformulateanewsystemofHRpolicieswhichwillmeettheaboveidentifiedtwinobjectives.Discussyourdraftproposalswithyourclassmates.

1.9 Human Capital Management

Likeotherorganisationalassets,employeeskillscanbeclassifiedascoreorperipheralassets.Coreassetsarevitaltothecompetitiveadvantageofanorganisationandoftenrequirecontinualinternaldevelopment.AccordingtoBettis,outsourcingthesekindofskillsmightjeopardisethecompetitiveadvantageofthefirmbyerodingitsstockofcoreskills.

Snell&Deannotethatanemployee’spotentialcontributionincreasesdramaticallywhenfirmsimplement advancedmanufacturing technologies. They refer to this impact on the value ofhumancapitalasthetransformationfromsweatlabourtoknowledgeworkers.Employeescanaddvalueiftheyhelpfirmsofferlowercostsorprovideincreasedbenefitstocustomers.

Thevalueanduniquenessofhumancapitalwillfunctionasstrategicdeterminantsofalternativeemploymentmodes.Whenthesedimensionsarejuxtaposed,anarchitectureoffourquadrantsisderivedthatsimultaneouslylinkthestrategiccharacteristicsofhumancapital,employmentmodes,employmentrelationships,andHRconfigurations.Box1.1providesasummaryofHRarchitecture.


Notes


Quadrant 4

alliance

partnership

commitment

Employment Mode:

Employment Relationship

HR configuration:

Quadrant 1

internal development:

organisation focused

collaborative

Employment mode:

Employment relationship

HR configuration:

Quadrant 3

: contracting

transactional

: compliance

Employment mode

Employment relationship:

HR configuration

Quardant 2

acquistion

symbiotic

market based

Employment mode:

Employment relationship:

HR configuration:

Box 1.1: Summary of HR Architecture

Source: TheHumanResourceArchitectureTowardsaTheoryofHumanCapitalAllocationandDevelopment,DavidLepak,ScottASnell,Academy of Management Review, 1999 (i).

1. Quadrant 1: Developing Human Capital: Inthetopright-handcornerofthematrix(Q1)wefindhumancapitalthatisbothvaluableandunique.Firmsaremorelikelytoemploypeople internally when their skills are firm specific. In addition to uniqueness, skillswithinthisquadrantarevaluablethatistheirstrategicbenefitexceedsthemanagerialcostassociatedwiththeirdevelopmentanddeployment.

2. Quadrant 2: Acquiring Human Capital: Human capital in Q2 is valuable, yet widelyavailable throughout the labourmarket.Because theseskillsarevaluable,organisationshaveanincentivetointernaliseemployment.Selectingskilledemployeesdirectlyfromthemarketmayalsoallowfirmstorealisesignificantsavingsindevelopmentalexpenditureswhilegaininginstantaccesstoawidevarietyofcapabilitiesthatmaygivepositivereturnsoninvestment.

!Caution A symbiotic relationship restson thenotion thatboth the employeesand theorganisationarelikelytocontinuetherelationshipaslongasbothcontinuetobenefit.

IncontrasttoQ1,thesetypeofemployeesareperhapslesscommittedtotheorganisationandmorefocusedontheircareer.Becausetheseemployeesareoftentrainedinaparticularoccupationorprofession,theycaneffectively‘sell’theirtalentstoavarietyoforganisations,wherever they can contribute and receive the highest returns on their human capitalinvestment.

3. Quadrant 3: Contracting Human Capital: Q3relatestohumancapitalthatisgenericandoflimitedstrategicvalue.Leonard-Barton3describesthisas‘publicknowledge’skillsthatcanbepurchasedeasilyontheopenlabourmarketandthereforecanbetreatedessentiallyasacommodity.LikeQ2,thelimiteduniquenessoftheseskillsprovideadisincentiveforfirmstoinvestsignificantresourcestowardemployeedevelopment.

Organisationsareabletocontractworkwithout jeopardisingtheircompetitiveposition.Temporaryemployees,leasingarrangements,andotherformsofcontractworkoftenfallwithinthiscategory.Whenemployeeshavelimitedassociationwithafirmandhaveexplicitperformance expectations, their psychological contractmay be termed transactional, inthatitfocusesonshort-termeconomicexchanges.


Notes


4. Quadrant 4: Creating Human Capital Alliances: Q4containshumancapitalthatisuniquein some way but not directly instrumental in creating customer value. For example,an attorneyhasunique skills that requireyearsofdevelopment to cultivate.Yet, smallfirmsmaynotbeabletojustifytheexpensesoffulltimeinternalemployment.Ifoutrightinternalisation is prohibitive from an opportunistic viewpoint, some form of an alliancebetweenthepartiesmayprovideahybridemploymentmodethatblendsinternalisationandexternalisationandcanovercometheseproblems.

Forsynergisticbenefitstoberealised,HRsystemsthatencourageandrewardcooperation,collaborationandinformationsharingarenecessary.Afirminvestinginthedevelopmentofapartner’sskillsimpliesthatitmightjustifytheexpensesofinternalemployment.

1.9.1 Dynamics of HR Architecture

ThetaskofstrategicHRMismadeevenmoredifficultwhenweconsiderthataligningtheHRarchitecturetoafirm’sstrategicposturemaynotproveviableinsituationswherecompetitionisdynamicandevolvesoveraperiodoftime.Asthefirm’senvironmentchangesandthenatureofcompetitionincreasesorshiftsbarriers,imitationfacesgreaterthreatsasthefirms’sexistingstockofknowledgeandskillsmaybecomeobsolete.Dynamiccompetitionmayreducethehalf-lifeofemployeeknowledge:half-lifebeingtherateatwhichitsrelevancedecaysoveragivenperiodoftimeincomparisontoprevailingstandards.

To make the deployment and value of human capital more firm-specific, managers maytry to enhance thedegreeofuniquenessofhumancapitalby customizingof adjusting skills.ManagementmaystrivetomakehumancapitalmorevaluableandshiftemployeesfromQ3andQ4 to Q1 and Q2.

Adoptinganarchitecturalperspectivemayhelpunderstandwhichformsofhumancapitalhavethepotentialtobeasourceofcompetitiveadvantagetodayandinthefuture,aswellasthosethatdonot.Ifthatpotentialisidentified,developedanddeployedstrategically,theabilitytomanagetheHRarchitectureitselfmayactuallybecomeacorecapabilitythatotherfirmsfinddifficulttoreplicate.

1.10 Environment of HRM

In thepresentvolatileenvironment inwhichchange is theonlyconstant factor, survivalandsustenancehavebecomecriticalissues.Iforganizationshavetosurviveandgrow,theyneedtoadaptthemselvestothesechanges.Humanresourcesaretheheartoftheresponsesystem.

Technologicaladvancesarebeingintroducedtoorganizationsatanever-increasingpace.Workersexperiencedramaticchangesintheirjobdutiesasaresultofthesechanges.

Trends in Labour Market in India

1. Inequality in wages has reduced: Computers and mechanization have reduced wagedispersionbecausetheyhavebecomeasubstituteforskillsincertainindustriesandhavesucceededinnarrowingthegulfbetweenskilledandtheunskilledworkers.

Wagedispersalincreaseanddecreasewilldependon:

(a) Ifmachines in an industryare extremely easy tooperate and replace themanualskillsofcertainworkers,unskilledworkerscanlearnhowtooperatethesemachinesandthewagedividemightdisappear.

(b) Ontheotherhand,ifmachinesrequirealotofskilltooperate,thenmechanizationresults in an increase in the difference in productivity between the skilled andunskilledworkers.


Notes


Hence,computerizationandmechanization,coupledwithtrainingofunskilledworkerstooperatethesemachineshavereducedthedisparityinwages.

2. Working hours: Mechanizationmeansmoreworkcanbedoneinlesstime.Thisimpliesthereisastrongpossibilityofreducingworkhours.Thisdoesnothappenbecauseoftworeasons:

(a) Employersmayreducethenumbersofemployeesandmaketheexistingonesworkharder.

(b) Theymayexpandanddiversifytheiroperationssothattheworkforcewouldhavetoworkharder.

Did u know? Computerization and mechanization have increased product and servicevariety.

Thus,thedemandforcertainemployeeshasgoneupinsteadofdeclining.As a result, there is a tendency for the number of work hours to increase.

3. Characteristics of work itself:Anothermajorchangeisthe‘working from home’. European and foreign companies have Indians working for them through the Internet in India.Sucharrangementalso facilitatespart-timeworkto theadvantageof theemployerandemployee.ThisisextremelysuitableforIndianwomenwhoaremuchbettereducatedthantwo decades ago.

4. Reduction in the accidents and injuries:Mechanizationinitsadvancedstagescorrespondstoautomationandreducesthecontactbetweenthemanandmachine.From2001to2011,theinjuryratesinfactoriesdeclinedfrom21.98to3.37.Thisimpliesthattheinjuryratein2011 is around one-sixth of that in 2001.

5. Labour turnover:Twomeasuresof labour turnover areused: accessionand separation.‘Accession’isdefinedasthetotalnumberofworkersaddedtotheemploymentoftheunitduringtheperiod,whetherneworre-employedortransferredfromotherestablishmentsorunitsunder thesamemanagement. ‘Separation’ impliesseveranceofemploymentattheinstanceofworkersoremployers.It includesterminationofserviceduetodeathorretirement

Self Assessment

Statewhetherthefollowingstatementsaretrueorfalse:

7. Competentemployeeswillremaincompetentforever.

8. Economicresources,bydefinition,arescarce.

9. Gettingandkeepinggoodpeopleiscriticaltothesuccessofeveryorganisation.

10. People are a source of competitive advantage when they improve the efficiency oreffectivenessofthecompany.

11. HumanResourceManagementisnotanendinitself.

12. Theterm‘workforce’meanspeopleworkingatlowerlevelsonly.

13. HumanResourceisanopensystemwithinanorganisationbutorganisationsthemselvesare closed.

14. HRMpoliciesareanamalgamationofideas,concepts,principlesandpracticesdrawnfromanumberoffields.


Notes


1.11 Internal and External Forces affecting the HR Function

1.11.1 External Forces

Externalenvironmentaffectsorganisations—bothdirectlyandindirectly.Theorganisationshavenocontroloverthevariablesinsuchanenvironment.Accordingly,organisationscannotchangetheenvironmentbutmustchangethemselvestoalignwiththeenvironment.

Externalforcesforchangearisefromthegeneralenvironmentaswellasfromtaskenvironment.Thegeneralenvironmentwhichaffectsorganisationsindirectlyconsistsofeconomicspolitical,legal,socioculturalandtechnologicalforcesandtheseforceskeeptheorganisationsalertsothattheybecomeawareofanychangesinthedirectionandmomentumoftheseforces.

Taskrelatedenvironmenthasadirectinfluenceonthehealthoforganisationsanditconsistsofcustomers,competitors,suppliers,labour,stockholdersandsoon.Allthesefactorscaninduceachangeintheorganisationaldirection.Accordingly,organizationscannotrestonstatusquoandmustremaindynamicandbeabletochangequicklytoadjusttothechangedenvironment.

Technological Forces

Technology refers to how organization transforms its inputs into outputs. Technologicalenvironment consists of those Forces related to knowledge applied and the materials andmachineusedintheproductionofthegoodsandservicesthathaveimpactonthebusinessofanorganization.

Organizationusesat leastonetechnology;forexample,MarutiUdyogLimitedusesassemblylineprocess;industrialrobotsdosuchtasksaswelding,spraypainting,precisioncuttingetc.

IBMhasbuiltaplantinAustinTexaswhichproduceslaptopcomputerwithoutsingleworker;ATMhasreplacedthousandhumantellersinbanks.

Lowerandmiddlelevelpositionsaretheworsthit.Newtechnologiesgenerallycompelpeopletolearnanewsetofskillsaltogetherandalsolearntoworktogether.

SomeimportantForcesandinfluencesoperatinginthetechnologicalenvironmentare:

1. Source of technology: like company source, external source and foreign source, cost oftechnologyacquisition,collaborationinandtransferoftechnology.

2. Technological development: stagedevelopmentchangeandrateofchangeoftechnologyandresearchanddevelopment.

3. Impactoftechnologyonhumanbeings,themanmachinesystemandtheenvironmentaleffectoftechnology.

4. Communicationandinfrastructure,technologyinmanagement.

For technologicalupgradation,TQMisan importantcatalystusedinthepresent times.Total quality management hasbeenusedbyBPL,Wipro,CarrierAircon,MarutiUdyogLtd.,Thermax,Bata,Philips,Toyotaandsoon.TQMisanorganizationalcultureofcontinuousimprovementofskills,teamwork,processesproductandservicequalityandcustomersatisfaction.

Economic Forces

Economic Environment:Fiscalpolicy,themonetarypolicy,industrialpolicy,thephysicallimitoroutput,thepriceandincomeequation,natureoftheeconomicsystem,thepaceofeconomicdevelopment. The following indicators are used to assess the economic environment of acountry:


Notes


1. Economicstageexistingatagiventimeinacountry.

2. Theeconomicstructureadaptedsuchascapitalist,socialistormixedeconomy.

3. Economicpoliciessuchas5YearPlan,annualbudgetetc.

4. Aneconomicpolicysuchasindustrial,monetaryandfiscalpolices.

5. Economicindicatelikenationalincome,distributionofincome,rateofgrowthofGNPpercapital income,disposablepersonal income, rateof saving, investment,valueof importandexport,balanceofpaymentsetc.

6. InfrastructureForcessuchasfinancialinstitutions,banks,modeoftransport,communicationfacilities,energysourceetc.

E.g.theliberalizationofIndianeconomyhadamixedeffectonIndianindustry.

Political Forces

It consistsofForces related togovernmentpolicies and labour lawsof a country,whichwilldirectlyinfluencethepersonnelpoliciesoftheorganization.Itismandatoryforanorganizationtofollowallthepoliciesandproceduresthathavebeenformulatedbygovernmentforprotectingtheinterestoftheemployees.

Social Forces

Thefactorconsistsofhumanrelationshipandthedevelopment.SomeoftheimportantForcesandinfluencesarebuyingandconsumptionhabitofpeople,oftheirlanguage,beliefandvalues,customs and tradition, tastes and preferences, education etc. Following social Forces havesignificantinfluenceonpersonnelfunctions:

1. Demographiccharacterizationssuchaspopulation,itsdensityanddistributionetc.

2. Socialconcernssuchastheroleofbusinessinsociety.

3. Socialattitudesandvaluessuchastheexpectediconsofthesocietyfrombusiness.

4. Familystructureandchangesinthem.

5. Roleofwomeninsociety.

6. Educational level.

7. Awareness.

Local and Government Issues

OneofthemostimportantForcesthataffectsHRMistheknowledgeoflegislationframedbythegovernmentatthestateandcentrallevel.Variouslegislationsinclude:

ProtectiveandEmploymentLegislation

1. FactoriesAct,1948

2. PaymentofWagesAct,1936

3. MinimumWagesAct,1948

4. EqualRemunerationAct,

5. PaymentofBonusAct,1965

6. ApprenticeAct,1961


Notes


7. EmploymentExchange(CompulsoryNotificationofVacancies)Act

Someoftheseareconcernedwiththehealthandsafetyoftheworkersattheirworkplace;othersprotecttheworkersbyensuringthattheygetpaidfortheworkdoneattheendofthemonth.

Trade Unions

Tradeunions are very important to labour, industrialist society and country. Every group isbenefitedby thepresenceof thisgroup.Tradeunions can influence thepersonnelpoliciesoftheorganization.Theyhaveakeyroleinbargainingforemploymentrelatedbenefitsthatcanimprovetheworkingconditionsofworkersononehandandeffectiveutilizationofworkforceonthe other. Trade unions have gained strength after the Industrial Revolution.

Workforce Diversity

Workforcediversitymeansthattheorganizationsarebecomingmoreandmoreheterogeneousin nature. With the coming up of multinationals, the organizations are a complex web ofindividualshavingdifferencesinculture,age,gender,race,education,ethicsandmoralvalues.Thesedifferencesarenotonlypresentintheworkculturebutalsointheiradaptabilityinmeetingglobalchanges.Thediversifiedcompositionencouragescreativityandbettersolutionstocomplexbusinessdecisionsbutposesproblemsinunderstandinghumanbehavioureffectively.

1.11.2 Internal Forces

Internal forces for change could be reactive which would constitute a response to outside forces or these could be proactivewhich brings in change induced bymanagement in anticipationof different and beneficial internal environment which could result because of this internalchange.

Shifts in sociocultural values in theworkforcemay require changes in the corporate cultureandstructure.Workersarebecomingmoreeducated, less conservativeandmorewomenarejoiningtheworkforce.Corporationswhichwerepreviouslystrictlydominatedbymenwithastrictcodeofdress,membershiporconductmustmakethenecessarychangestoaccommodatethesedemographicshifts.Forexample,provisionsfordaycarecentresforthechildrenofyoungworkingmotherswasunheardofonlyagenerationago.

Thechangesinducedbytheinternalforcesasapreparationtoeffectivelymeettheanticipatedandpotentialorganisationalenvironmentalchangesisknownas“plannedchange”.Thischangeisdeliberatelydesignedandadaptedtomeettheexpectedfuturethreatsandopportunities,sothattherearefewersurprisesandtheorganisationscanremaincompetitiveintheenvironmentaldynamics.

ThemostimportantinternalForcesthatinfluencepersonnelpoliciesareasfollows:

1. Business Ethics and Value system: Thevaluesystemofthefoundersofanyorganizationhasanimportantbearingonthechoiceofthebusiness,themissionandobjectiveoftheorganization,businesspoliciesandpractices.Itisanimportantacknowledgedfactthattheextenttowhichallintheorganizationsharethevaluesystemisanimportantfactor,whichcontributesmoretowardssuccess.

2. Mission: Themissionandobjectivesguidethegrowthandsuccessofthecompany,priorities,direction of development, business philosophy, and business policy. The IOCnurturesthemissionofbecomingatransnational energy major anddiversifyingitsproductsandservicesbyenteringintorelatedareas,bothupstreamanddownstream, includingE&P,LNG,Petrochemical,Power,FuelManagementandconsultancyservices.ThevisionofDr.Reddy’sLaboratoriesistobecomeadiscovery–ledglobalpharmaceuticalcompany.The


Notes


visionofTCSistobeamongthegloballytop10by2010.Thesevisionsgoalongwayininfluencingthepersonnelpolicies.

3. Organizational culture and structure: The organizational structure, the composition oftheBoardofDirectors,extentofprofessionalizationofmanagementareimportantForcesinfluencingpersonnelpoliciesdecision.

4. Internal power relationship: TherelationshipbetweenthemembersofBoardofDirectorsandamongtheotherstaffisalsoacrucialfactorforthesmoothrunningoftheorganizationandalsobecomingagrowth-orientedfirm,andwillinfluencethepersonnelpolicies.

5. Human resources: The characteristics of human resources like skill, quality, morale,commitment, attitude etc., contribute to the strength andweakness of an organization.Theinvolvementandinitiativeofpeopleatdifferentlevelsmayvaryfromorganizationtoorganization.Theorganizationalcultureandoverallenvironmentistotallytheoutcomeoftheseandhenceeventhetypeofhumanresourcewillinfluencethepersonnelpolicies.

Self Assessment

Fillintheblanks:

15. Externalenvironmentaffectsorganizations—both……………and……………

16. Organizationscannotchangethe……………butmustchangethemselvestoalignwiththeenvironment.

17. Tradeunionshavegainedstrengthafterthe……………Revolution.

18. Themissionandobjectivesguidethe……………and……………ofthecompany.

19. The changes induced by the internal forces as a preparation to effectively meet theanticipatedandpotentialorganizationalenvironmentalchangesisknownas……………

20. ……………meansthattheorganizationsarebecomingmoreandmoreheterogeneousinnature.

Case Study Welcome Corporation

Stop ‘n’ shop was started in 1967 in Calcutta as a big departmental store. Whenbusinessfellinafewyears,thecompanyrespondedwithaplantoconvertthestoresintoa“Hot Shoppe,”whichwouldservefastfoodandchoicestsweets.Thatplanwas

sosuccessfulthattheyexpandedtootherlocations.SoontherewereHotShoppesalloverthecountry.In1987,thefirmagainrespondedtoitsenvironmentbyenteringtheairlinecatering business with an Indian Airlines contract. Success there led to further expansion ofcateringservices.Notuntil1987didHotShoppedevelopplans to link its success inrestaurantsandcateringtohotels.In1999,HotShoppewasratedthetopmajorhotelchainfor business travellers.

BKGhosh,thecurrentchairmanofHotShoppe,isthesonofthefounder.Heisaperfectionistwhen it comes to cleanliness and attractiveness. Hot Shoppe employees must followacarefullydefined,54-stepprocedure inmakingupa room,doingeachstep inpropersequence. BKGhosh also believes in keeping in touchwith operations and personnel.Hetravelsfarandwideeachyeartovisitallpartsofhisfirmaswellashiscompetitors’businesses.

Contd…


Notes


HotShoppeenjoysover` 100 crore in sales and isorganised into threeprimaryareas:Lodging,contractservicesandrestaurants.Lodgingaccountsforabout40percentofsalesbutabouthalfofprofits.Thefirm’slodgingoperationincludesnearly5,000guestroomsinover16hotelsandresortslocatedthroughoutIndia.Thoseunitsareorganizedbylocationandbythetypeofmarketserved.Itservestheeconomyorlowerendofthemarket;themiddleofthemarket;thehighendofthemarket.

Thecontractservicespartofthefirmconsistsofseveralgroups.OneistheBusinessFoodandServicesgroup,providingemployeecafeterias,executivediningroomsandconferencecentres. Another is the airline catering service group. The Host International group provides airport and non airport services and shops. The Health Care Services group serves about 50healthcareaccountsinhospitals,retirementcentres,andnursinghomes.TheMahatmaEducation Services group serves nearly 60 college and secondary education clients instudentandfacultydiningfacilities,stadiums,andsportsarenas.

TheWelcomeCorporation,asamajoraspectofitscontrolfunction,monitorsitsenvironmentclosely.Welcomeisconsideredtobeoneofthemosteffectiveorganisationsinthecountryin what is known as competitive intelligence—the art of spying on competitors. Forinstance,beforelaunchingitshotelchain,Welcomesentateamofsixemployeesaroundthecountryforsixmonths.Theteamstayedineveryinexpensivehotelchaininexistence,gatheringinformationaboutsuchthingsasqualityofroomserviceprovided,thebrandsof soaps and towelsusedand the constructionand soundproofingofwalls.Using thatinformation,Welcomewasabletobecomethenumberoneintheeconomymarketinitsfirstyearofoperation.

TheWelcomefamilyowns21percentofthestockofthefirmandseemsdestinedtocontrolthecompanyforsometime.SureshistheCEO;hismotherisavicepresidentanddirector;andhisbrotheristhevicechairman.Inaddition,hissonsandson-inlawholdmanagerialpositionsinthefirm,havingworkedtheirwayupfromlowerjobsthathelpedthemlearnthebusiness.Thishomegrownapproach to staffing inmanagement enables thefirm torespond quickly to opportunities but also candiscourage non-familymembers in theirquestfortopspotsinthefirm.

Question

Ifyouaretheheadofthecompany(CEO);whatissueswouldyouliketoworkwith?Howdoyouanalysethesituationabouteachoftheseissues?Howdoyouarriveatadecision?

1.12 Summary

Peoplehavealwaysbeencentraltoorganizationsbuttheirstrategicimportanceisincreasingzz

intoday’sknowledge-basedindustries.

Whenproperlymotivated,evenordinarypeoplecandeliverextraordinaryresults.zz

HRMisresponsibleforthepeopledimensionoftheorganization.zz

It is a pervasive force, action-oriented, individually-oriented, development-oriented,zz

future-focused,andintegrativeinnatureandisacomprehensivefunction.

HRMmainly covers threebroadareas:personnel aspect,welfare aspect, and industrialzz

relations aspect.

HRMaimsatachievingorganizationalgoalsmeettheexpectationsofemployees;developzz

theknowledge,skillsandabilitiesofemployees,improvethequalityofworkinglifeandmanagehumanresourcesinanethicalandsociallyresponsiblemanner.


Notes


From an organizational standpoint, goodHRpractices help in attracting and retainingzz

talent,trainpeopleforchallengingroles,developtheirskillsandcompetencies,increaseproductivityandprofitsandenhancestandardofliving.

ThefieldofHRMevolvedbothinIndiaandelsewhere,overanumberofyearstoitspresentzz

levelofsophisticationanduseofproactivemethods.

The effective use of people is the critical factor in the successful accomplishment ofzz

corporate goals.

To this end HR managers need to understand the needs, aspirations of employeeszz

proactively,facethechallengesheadonandresolveissuesamicablyintheyearsahead.

1.13 Keywords

E-Policies: Policies defining acceptable and prohibited activities and use of e-mail and theInternetmakeupamajorityofthesepolicies.

Employee Benefits:Thesearepoliciesthatexplainemployeebenefitssuchasinsurance,vacations,holidays,leave,andemployeereimbursements.

Employee Conduct:Thesepoliciesareguidelinesthatcontrolemployerbehaviourandconducton the job.

Employment Policies: These are the policies that guide hiring practices, orientation of newemployees,compliancewithemploymentlaws,andconfidentiality.

Employment Status and Records:Thesearethepoliciesthatdefinesuchissuesasemploymentclassifications,accesstopersonnelfilesandguidanceonhowbackgroundchecksandperformancereviewsaretobeperformed.

HRM: A process of bringing people and organisations together so that the goals of each one is met,effectivelyandefficiently.

HR Policies:HRpoliciesareasetofwrittenguidelinesforhumanresourcedecisions.

Management: Theprocessof efficiently achieving theobjectivesof theorganisationwith andthrough people.

Payroll: These are policies that are related to salary and wage administration includingdeductions,payadvances,andtimekeeping.

Policy:Apolicy isapredeterminedcourseofactionestablishedasaguide towardsacceptedobjectivesandstrategiesoftheorganization.

Policy Manual:Apolicymanualisameansofcommunicationwithemployees;itisfirstawayto communicate to employees themanagement rules and guidelines of the organization aredocumentedandhenceactasreferencetools.

System: Twoormorepartsworkingtogetherasanorganisedwholewithclearboundaries.

Workforce Diversity:Workforcediversitymeansthattheorganizationsarebecomingmoreandmoreheterogeneousinnature.

Workplace Guidelines:Thesepoliciesarequitevariedand theirpurposerange fromdefiningcertainworkarrangementssuchasflextimeandtelecommutingtoofferingguidelinesontheuseofcompanyassetsandrecordretention.


Notes



1. DefineHRMandoutlineitsfeaturesclearly.

2. What are the criteria that determine whether an organization’s HRM practices areeffective?

3. “PersonnelManager’spositioninthecompanydoesnotdeterminehisvoiceinthepolicy-makingonpersonnelmatters”.Discuss.

4. GiveexamplesofhowHRconceptsandtechniquescanbeofusetoallmanagers.

5. WhyisitcorrecttosaythatallmanagersareinvolvedintheHRMfunction?

6. InwhatwayscaneffectiveHRcontributetoprofits?

7. “ThechallengeandtheroleofHRDepartmentbeingwhatitis,itisstrangethatitsstatusisnotrecognisedandrespected”comment.

8. WhyhastheHRMfunctionincreasedinstatureandinfluenceinmanyorganisations?

9. Whatdoyoumeanbythe“SystemsapproachtoHRM”?WhataretheimportantsubsystemsofHRM?

10. Critically examine the evolution and present state of human resource management inIndia.

Answers: Self Assessment

1. (c) 2. (c)

3. (c) 4. (b)

5. (d) 6. (d)

7. False 8. True

9. True 10. True

11. False 12. False

13. False 14. True

15. directly,indirectly 16. environment

17. Industrial 18. growth,success

19. plannedchange 20. Workforcediversity


Books Aswathapa,K.(2008)5thed,Human Resource Management, Tata McGraw Hill.

DipakKumarBhattacharyya, Human Resource Management,ExcelBooks.

French,W.L. (1990),Human Resource Manangement, 4th ed., HoughtonMiffin,Boston.


Notes


H.J. Bernardin, Human Resource Management,TataMcGrawHill,NewDelhi,2004.

Ivancevich,JM(2008),Human Resource Management, Tata McGraw Hill.

Madhurima Lall and Sakina Qasim Zaidi,Human Resource Management, ExcelBooks.

PLRao,Comprehensive HRM,ExcelBooks.

Rao P.S (2008), Essentials of Human Resource Management and Industrial Relations, Text cases and Games,HimalayaPublication.

Online links http://www.slideshare.net/sreenath.s/evolution-of-hrm

www.articlesbase.com/training-articles/evolution-of-human-resource-management-1294285.html

http://www.oppapers.com/subjects/different-kinds-of-approaches-to-hrm-page1.html

http://www.managementparadise.com/forums/human-resources-management-h-r/1133-environment-hrm.html

Unit 2: Strategic Human Resource Management

Notes



CONTENTS

Objectives

Introduction

2.1 StrategicHumanResourceManagement

2.2 HRManditsRoleinCreatingCompetitiveAdvantage

2.3 CreatingStrategicHRMSystem

2.4 Summary

2.5 Keywords



Objectives


Definethetermstrategichumanresourcemanagementzz

Explaintherelevanceofcompetitiveadvantagezz

DiscusstheHRM&itsroleincreatingcompetitiveadvantagezz

ExplaintheconceptofcreatingstrategicHRMsystemzz

Introduction

Today,HR’sroleisshiftingfromprotectorandscreenertostrategicpartnerandchangeagent.Themetamorphosisof“personnel”into“humanresourcemanagement”reflectsthat.Intoday’sflattened,downsized,andhigh-performingorganizations, trainedandcommittedemployees–notmachines–arethefirm’scompetitivekey.ThemodernHRMconsidersitsemployeesasitsmostimportantresourceanditsrolehasshiftedfrompolicemantoadeveloperwhotakescareof theoveralldevelopmentof itsemployees in termsof skill, careergraphandpsychologicalsatisfaction.

2.1 Strategic Human Resource Management

Ifafirm’scompetitivenessdependsonitsemployees,thenthebusinessfunctionresponsibleforacquiring,training,appraisingandcompensatingthoseemployeeshastoplayabiggerroleinthefirm’ssuccess.Thenotionofemployeesascompetitiveadvantagehasthereforeledtonewfieldofstudyknownasstrategic human resource management,“thelinkingofHRMwithstrategicgoalsandobjectivesinordertoimprovebusinessperformanceanddeveloporganizationalculturesthatfosterinnovationandflexibility.”Ideally,HRandtopmanagementtogethercraftthecompany’sbusinessstrategy.ThatstrategythenprovidestheframeworkthatguidesthedesignofspecificHRactivitiessuchasrecruitingandtraining.Thisshouldproduceemployeecompetenciesandbehavioursthatinturnshouldhelpthebusinessimplementitsbusinessstrategyandrealizeitsgoals.HRstrategiesarethecoursesofactionHRusestohelpthecompanyachieveitsstrategicaims.


Notes


SHRMisbuiltaroundthreeimportantpropositions(M.Armstrong34-45)

Thehuman resourcesof afirmareamajor sourceof competitiveadvantage; in away,zz

peoplecanmakeorbreakanorganization.

Successfulorganizationalperformancedependsonaclosefitbetweenbusinessandhumanzz

resourcestrategy(verticalfit).

IndividualHRstrategicshouldcoherebybeinglinkedtoeachothertooffermutualsupportzz

(horizontalfit).

Self Assessment


1. Competitivepressureshaveverylittleimpactonthestrategiesofmanycompanies.

2. Untilrecently,organisationshaveneverbeenconcernedwiththepersonnelproblemsoftheiremployees.

3. Technologyandglobalizationare theonly forcesdriving change inorganisations thesedays.

4. Human capital can be managed the way organisations manage jobs, products andtechnologies.

5. Productivityatnational,organizationalandindividuallevelsiscriticaltoorganizationalsuccess.

6. Peopleareasourceofcompetitiveadvantagewhentheirskills,knowledgeandabilitiesareeasilyavailabletocompetitors.

7. SHRMisthepatternofplannedhumanresourcedevelopmentsandactivitiesintendedtounable an organisation to achieve its goals.

8. HRcannothelpafirmcarryout restructuringanddownsizing effortswithout rubbingemployeesonthewrongside.

9. Globalization,deregulationandtechnologicalinnovationhaveinrecenttimescreatedtheneedforrather,fasterandmorecompetitiveorganizations.

2.2 HRM and its Role in Creating Competitive Advantage

Acompany’shumanresourcesareitsmostfundamentalsourceofcompetitiveadvantage.Whentheygetinspiredandworktotheirfullpotential,peoplecanbringalottothetable.Theycanbringsmilestocustomersthroughunmatchedserviceandwinningwaysofdoingthings.Theycancombinethescarceorganizationalinputsinsuchawonderfulmanner;theendresultcouldbestunninglysuperiorandvastlydifferentfromtheoneofferedbyarivalfirm.Theexpertise,knowledgeandexperiencethatcapableemployeesofanorganisationpossesscouldoftenspellthedifferencebetweensuccessandfailureinthecorporateworld.Competitiveadvantageistheabilityofafirmtowinconsistentlyoverthelong-terminacompetitivesituation.Competitiveadvantageoccurs ifcustomersperceivethat theyreceivevaluefromtheir transactionwithanorganisation.Itoccurswhenthefirmdoessomethingthatotherscannotdoordoesitbetterthanothers.Forexample,Dellhasacompetitiveedgeover its rivals,arisingoutof itsexceptionalabilitytocreateadirectsellinge-commercechannelthatishighlyresponsivetocustomers.

Humanresourceprofessionalshave,moreorless,agreednowthatthekeytoafirm’ssuccessdependsonasetofcorecompetencies—intheformofemployeeskills,knowledge,experienceandtheabilitytousethesetotheadvantageofthefirmwhenrequired—thatseparatethefirm


Notes


fromitsrivalsanddelivervaluetocustomers.Mostoften,acorecompetence(mayalsobeviewedasacompetitivelysuperiorresourcestrength)isknowledgebased,residinginpeopleandinacompany’sintellectualcapitalandnotinitsassetsorthebalancesheet(Thompsonetal2006).

Example: Federal Express has core competencies in package routing, deliver andemployeerelations.

Did u know?Thequalityof3M’sR&Ddepartmentistheprincipalsourceof3M’ssustainedgrowth.

Generallyspeaking,corecompetenciestendtobelimitedinnumberbuttheydefinitelyofferasolidbasisfortechnologyinnovation,productdevelopmentandservicedelivery.Itmustalsoberememberedherethatitisnotenoughforanorganisationtopossessvaluableresourcesthatoffercompetencies;thoseresourceshavetobemanagedinawaythatgivestheorganisationanedgeovercompetition.Organizationscanachieveasustainedcompetitiveadvantagethroughpeopleiftheymeetthefollowingconditions:

Superiority:zz Thisrequiressingle-mindedfocus on customer needs and expectations. To achieve this,theorganisationneedstotuneitspoliciesinlinewithchangingcustomer’srequirementsanddeliversuperiorservice.Forexample,FederalExpresswasoneofthefirstcompaniesto introducepackage tracking capability. It created a system for tracking apackage allalongitspath.Obviously,itwasbetterthanUPSatfindingwhereacustomer’spackagewas.HRcanbringthatplusvaluetothefirmbyhiringthebesttalentthatactuallymatcheswith organisational culture. Organisations will have to invest heavily in their humanresources in order to be competitiveduring the twenty-first century.Human resourcesbecomeasourceofstrengthwhentheyfindwaystoreducecosts,offersomethinguniquetocustomersandtherebyimprovetheefficiencyoreffectivenessofacompany.

Inimitability:zz Superiorityalonedoesnotguarantee competitiveadvantage.Togain theedge,thefirmmusterectbarriersthatareinsurmountable.Thatis,itmustofferaproductorservicethatisnoteasytoimitateorcopy.Anorganisationshouldalwaystrytobeuniqueinitsindustryalongdimensionsthatarewidelyvaluedbycustomers.Forexample,Disney’stheme parks are often quoted as having a competitive advantage in friendly, smilingemployees.Now,isiteasyforotherfirmstoreplicatethis?Iftheanswerisyes,Disney’ssuperioradvantagewillsoondisappear.Buthoweasy is it tofindandkeepemployeeswhocan smile forhoursonendevenwhilebeingaskedwhere thenearest restroom isfortheten-thousandthtimethatday?Theharderitisforotherfirmswiththemeparkstohire, develop and keep friendly employees, the longerDisney’s competitive advantagewillpersist.Throughemployeefriendlypoliciesandpractices,HRcaninstillconfidenceinpeopleandinspirethemtogivetheirbesttotheorganisation.BothSouthwestAirlinesandStarbucksareknownforcreatinguniqueculturesthatgetthemostfromemployeesandaredifficulttoimitate.

Durability:zz Forovertwodecades,someanalystsnowargue,theDisneybrandwaslargelyneglected—especiallyafterthedeathofWaltDisney.Itnonethelessenduredinthemindsof childrenand theirparents.Again,what is theglue thatholdsemployees together inHDFCtobeabletoofferhomeloanproductstoindividualsforovertwodecades—withsurprisingly lowattrition rateswhencompared to rivals’—anddeliver superior returnstoshareholdersatthesametime?IBMandGEhave,overtheyears,perfectedtheartofblendingthediverseskillsetsofpeopleanddeployingthemonchallengingassignmentsatamoment’snotice.

Non-substitutability:zz Competitiveadvantagedemandsalowpossibilityofsubstitution.Substitution is concernedwithwhether or not the customer’s need that you fulfill canbemet by alternativeways. It is not possible to sustain a competitive advantage over


Notes


extendedperiodsoftime.AftertheemergenceofInternet,studentshavealmostforgottenEncyclopediaBritannica(andits30boundvolumesasreadysourcesofinformation).Thebestwaytomaintainleadershipistocontinuallyseeknewformsofadvantagethroughconstantexperimentation,innovativeeffortsandinvestmentsinlatesttechnology.Inordertoenjoythecompetitiveadvantage,thefirmshouldbeacost-leader,deliveringvalueformoney.

Appropriability:zz Thisisafunnywayofaskingwhetheryouactuallyendupmakingprofitsthatareabovetheaverageforacomparablesetoffirms.Inotherwords,youmayhaveasmallershareofthemarket,butyouareabletorideoverthemarket,enjoyingsupernormalreturns,enjoyingusuallyacostadvantage.

To deliver superior value and offer unmatched service, every firm requires the services ofa committed and competentworkforce. There is increasing research evidence indicating thatemployeesaremostproductiveif(i)theyareloyaltothecompany,informedaboutitsmission,strategicandcurrentlevelsofsuccess,(ii)involvedinteamswhichcollectivelydecidehowthingsaretobedoneand(iii)aretrustedtotaketherightdecisionsratherthanbecontrolledateverystagebymanagersabovethem(Thompson).

!Caution Agoodteamofcompetentandcommittedemployeeswilldeliverthegoalsiftheyareinvolvedinallimportantactivitiesandareencouragedtodevelopgoalsthattheyaresupposed to achieve.

In recentyears, anew lineof thinkinghasemerged to support thisview–knownasStrategicHumanResourcesManagement(SHRM).

Self Assessment

Fillintheblanks:

10. Itis……………topayemployeestoolittlethantopaytoomuch.

11. Lifetimeemploymentwill……………themanager’spowertoexactcompliancethroughthethreatoftermination.

12. Many organisations have restructured in the past few years in order to become……………

13. A well designed strategy can…………… if sufficient attention is not paid to the HRdimension.

14. Competencyistheabilitytoperform……………wellandincreasethestockoftargetedresources.

15. Todeliversuperiorvalueandofferunmatchedservice,everyfirmrequirestheservicesofacommittedandcompetent……………

Case Study Janata Bank

Janata Bank, established in 1979, is a financial services company headquartered inMumbai.Massivechangesbegantotakeplaceinthebusinessenvironmentofbankingwithderegulationandrelaxationofceilingsoninterest.Moneymarketsbegantodrain

offfundsthatordinarilywentintobanks’deposits,forcingthemtorelyonmoreexpensiveContd…


Notes


sourcesoffunds.Further,themoneycentrebanksbegantocompeteinthesamemiddlemarketsasregionalbanks.JanataBank,whichwasasmallregionalbank,respondedbychangingitsstrategyfromaproductorientedonetoonedirectedtowardmarkets.Withaproductorientation,productsaredevelopedandthenmarketsaresoughtinwhichtoselltheproduct.Asaresultofthesechanges,JanataBanktransformeditselfintoadiversifiedfinancialservicescompanywith139branchesandfullyintegratedbankingservicesandstocktradingpresenceontheInternet.

Because of major changes in Janata Bank’s strategy, there was a recognition that neworganisationalstructureswouldbeneededtoaccommodatethechanges.Theorganisationwasdecentralised,hierarchicallevelswereremoved,strategicbusinessunitswereformedand new senior vice-presidencies created within a matrix structure. The bank thenconductedastudyofthetypeofemployeesthatwouldbeneededwiththenewstrategy’sskillandorganisationalrequirements.Majorchangeswereundertakenasaresultoftheaudit. For example, theperformance appraisal systemwas revised.The revised systememphasised goal setting, linked individual goal accomplishment and rewardswith theattainmentofthebank’sobjectivesandplacedgreateremphasisinperformanceappraisalonmarketingandsales.Further,humanresourceplanningwasmorefullyintegratedwiththestrategicplanningprocessthroughsynchronisationofitsscanningprocesseswiththebank’soverallenvironmentalscanningprocess.

Questions

1. Based on the descriptions of the experience of Janata Bank,what is the unifyingthemeoftheroleplayedbyhumanresourcemanagement?

2. WhatweretheenvironmentalinfluencesstimulatingtheactionsdescribedforJanataBank?

3. WhatmanagerialtrendsareindicatedintheexperienceofJanataBank?

2.3 Creating Strategic HRM System

Strategic HRM begins with an assumption that the company has a mission of obtaining anappropriaterateofreturnforshareholders,whilecomplyingwiththeinterestofthecompany’sotherstakeholdersincludingemployees.

A thorough understanding of the investment perspective is critical for HR executives andmanagerswhowishtoplayastrategicroleintheirorganisation.Justasfinancialoutlaysforplantandequipmentareevaluatedfromaninvestmentperspective,expenditureonHRactivities,suchastraininganddevelopment,alsoshouldbeevaluatedintermsofreturnoninvestment.

Additionallytheinvestmentperspectiveprovidesavaluablegeneralmanagerialframe-workforevaluatingprogrammes,policiesandactivitiesintermsoftheirabilitytoenhanceandpreservetheorganisation’sinvestmentinitshumanresources.Aninformedawarenessofenvironmentaltrendsanddevelopments is requiredbeforemanagers canexamine intelligently thepotentialopportunitiesofHRmanagementandthebroadereconomicenvironmentwhichhavechangeddramatically. In addition to these changes, the legal environment ofHR continues to evolveandexpand.Insomerespects,thelegalenvironmentitselfhasbecomeasourceofuncertainty.AlthoughinthepastHRstrategistsmanynothaveincorporatedthelegalenvironmentintheirconceptual framework, further expansion of the law into areas of employer and employeerelationshipshavemadethe legalenvironmentacriticalcomponentofstrategicanalysis.Theframework’s investment perspective drives the formulation of strategies for dealing withopportunitiesand threats in theenvironment.HRandHRmanagement canplaymajor rolesin the organisation’s overall strategyparticularlywhenHRare viewed asproviding amajorcompetitiveadvantage.


Notes


Company Mission

1.An investment Perspectiveof Human Resource Management

2. Environmental Scanning:Human Resource Environment

3.Environment Scanning :Human Resource Legal Environment

4. Strategy Formulation

5. Human Resource Planning

6. Strategy implementaion: WorkforceUtilization and Employment Practices

7. Strategy implementaions:Reward and Development Systems

8. Performance impact of Human Resource Practice

9. Human Resource Evaluation

Source trategic HRM, : Charles R Greer, S Pearson (2001) P.138

Figure 2.1: Process of Strategic HRM

Source: CharlesRGreer,Strategic HRM, Pearson (2001) P.138

Notes SomeauthorshavedefinedstrategicHRmanagementastheeffectiveapplicationof the organisation’s overall strategies. Such definitions have only an implementationperspective,whileotherauthorsalsoseestrategicHRmanagementasbeing integratedwith strategy formulation. HR strategies are narrower in focus than the domain ofstrategicHRmanagement.HRstrategiesdefinethemannerinwhichtheorganisation’spractices,programmes,policiesandactivitieswillbealignedtoobtainconsistencywiththeorganisation’soverallstrategies.Suchstrategiesplayanimplementationroleandarevaluablemeansofobtainingdirection,consistencyandcoherenceinHRefforts.TheroleofindividualhumanresourceactivitiesmaybebetterunderstoodthroughtheapplicationofaconceptualtypologydevelopedbyAlanSpeaker,seniorVPatSynergyHRTechnologies.

Thetypologycategorizeshumanresourceactivitiesina2×2matrixaccordingtotwodimensions(1)Theextenttowhichsuchactivitiesarerelationaltotransactionand(2)whethertheyhavehighor low strategic value.

1. Atoneendofthetransactionalandrelationshipcontinuumaretransactionalactivitiesthataremostlyadministrativeand impersonal.Theperformanceof theseactivitiesdoesnotrequireahighlevelofinterpersonalskill,andmanyoftheseactivitiescanbecomputerised.Attheotherendofthecontinuumareactivitiesthatrequirehighlevelsofinterpersonalskills,politicalawareness,andsensitivity.

2. For the strategic-valuedimension, at one endof the continuumare activities thathavedirectbusinessimpactonthefirm’sabilitytoimplementitscompetitivestrategies.Atthe


Notes


otherendofthecontinuumareactivitiesthathaveamoreindirectorlessstrategicimpact.ThemodelispresentedinFigure2.2.

zzStaff Planningzz

zz

zz

Compilance Benefits PlanningRetirement Planning

zz

zz

zz

zz

zz

zz

zz

zz

Performance EnhancementConsultingEmployee RelationsLabour NegotiationsExecutive CompensationEmployee DevelopmentManagement DevelopmentRecruitment interviewing

SrategicValue ofActivity

Important Executives

Payroll

Retirement AdministrationEmployee Records Relocation AdministrationRecruitment Info.Processing

zz

zz

zz

zz

zz

zz

Benefits Administration zz

zzzzzzzzz

zz

zzzzzzzz

Recruitment Information Processing

Employees AssistanceProgrammes

Important to Employees

Transactional Type of

HR Activity Relationship

High

Low

Figure 2.2: Model of SHRM

Task Assumethepositionofaconsultanthiredtoassesstheapproachtowardshumanresourcesmanagementtakenbyaclientorganization.Whatfactorsmightyouevaluatewhetheranorganizationusesatraditionalorstrategicapproachtomanagingitshumanresources?

Case Study Strategic Human Resource Management at JCP

Theoriginof JCPcanbe tracedback toTheGoldenRule (TGR), adrygoodsandclothing store, in Kemmerer, Wyoming, set up in 1902 by James Cash Penney(Penney).

OnOctober27,2004,JCPannouncedthatUllmanwouldsucceedQuestromaschairmanandCEOofJCPonDecember1,2004.

UllmanwaschosenaheadofCastagnaduetowhatQuestromdescribedashis“superiorrecordof success in retailing” and the leadership that hehaddemonstrated atMacy’s,LVMHMoetHennessy Louis Vuitton, and the DFS Group (Duty Free Shoppers). ThemanagementatJCPexpectedUllmantotakeJCPtothenextlevel.

Contd…


Notes


However, analysts felt that the challengebeforeUllmanwas immense.NewbloodhadtobeinfusedinJCPwithouttheexistingemployeesbeingalienated.TheorganizationalcultureatPenneyhadnotchangedmuchsincethetimeofitsfounderPenney.

ThoughUllmanhadrichexperienceintheindustry,hedesistedfromintroducingsweepingchanges at JCP based on what he thought was right.

Forthefirstfewmonths,hepatientlylistenedtotheemployees.Healsolookedoutsidefor ideas.

Hetalkedwithpeoplewhohadledturnaroundsinothercompaniesandevensentateamto InternationalBusinessMachinesCorp (IBM).A fewmonthsafterUllmanunveileda‘LongTermPlan’withthefocusontakingJCPtotheindustryleadershiplevel.OneofthestrategiestoachievethisobjectivewastomakeJCPagreatplacetoworkin.

Ullmanexplained,“Theassociatesarethefirstcustomerswesell.Ifitdoesn’tringtruetothem,it’simpossibletocommunicateandinspirethecustomer.”

Ullmanwantedtobuildacustomer-focusedcultureatJCP.Butintryingtodoso,hemetwith significant challenges. JCPwasa companywitha long traditionofmore than100years.

Ithadrunintotroubleinthelate1990sandearly2000s,butundertheableleadershipofchairmanandCEOAllenQuestrom(Questrom)andCOO,VanessaCastagna(Castagna),itwitnessedadramaticturnaroundbytheendof2004.

WhenUllman joinedthecompany,he foundthat theorganizationalcultureat JCPwasveryformalandrigid,insomewaysverysimilartowhatithadbeeninitsinitialdays.Employeesaddressedtheirmanagers formally,andnotby theirfirstnames.Theywereexpectedtodressformallyandtodesistfromdecoratingtheircubicles.Abandof“officepolice”reporting to theHumanResource (HR)departmentensured that theemployeescompliedwiththerigidrules.

Moreover,duetotherecentturnaround,themoodoftheemployeeswasnot“forward-thinking”astheywerepleasedthatamajordisasterhadbeenaverted.Ullmanrealizedthatthismoodandtherigidculturewerenotconducivetoattainingtheambitiousplansetbythecompany.Thoughthecompanybelievedincoachingitsemployeesatalllevelsinthehierarchysincethe1970s,itwasstillnotconsideredtobeagreatplacetoworkforbytheemployeesandpotentialemployees.

He felt that the rigid culture at JCPwas intimidating new recruits, resulting in a highturnover,andactingasahindranceinattractingtalent.Soinconjunctionwiththenewlyappointed HR chief Michael Theilmann (Theilmann), Ullman started an initiative toredefinethecultureatJCP.

“Thebusiness isn’t just about storemanagers anymore - it’smore complicated than itusedtobe,andIneedtomotivateemployeesfromtheentryleveltotheofficers.IfIhadachoicetohonorthepastandlose,ormoveforwardandwin,Ipickwinning,”saidUllman.Varioussymbolicchangesweremadein2005.

Symbolic changes apart, JCP also kick-started a process to groom leaders and provideongoingtrainingtoalltheemployees.ThemanagementfeltthattoprojectJCPasagreatplacetoworkin,theemployeeshadtofeelthattheycouldbuildacareerinthecompany.

The efforts to change the culture at JCP started bearing fruits within two years. Thevariousinitiativesseemedtobehavingapositiveimpactontheemployeesandtheirjobsatisfaction.

Contd…


Notes


UllmanwascreditedwithhavingbroughtaboutarevolutionarychangeinJCP’sculture.Experts said the culture of an organizationwas top-driven and the topmanagement’scommitmentwasvitalinsuchculturechangeinitiatives.

Questions

1. Afteranalyzingthecase,howdoyouthinkwasthefocusofcompaniesthatwantedtotransformtheirculturechanged?

2. How would you rate Ulman as the leader for the strategic human resourcedevelopmentpolicyandwhy?

Source: www.idgyth.com

2.4 Summary

Theroleofhumanresourcemanagementinorganisationshasbeenevolvingdramaticallyzz

inrecenttimes.

HRisincreasinglyreceivingattentionasacriticalstrategicpartner,assumingstunninglyzz

different,farreachingtransformationalrolesandresponsibilities.

StrategicHRMisthelinkingofHRMwithkeygoalsandobjectiveswithaviewtoimprovezz

business performance and develop organisational cultures that foster innovation andflexibility.

HRcanbeasourceofcompetitiveadvantage,whenthetalentsofpeopleworkinginthezz

companyarevaluable,rare,difficulttoimitateandwellorganisedtodeliverefficientandeffective results.

Peoplehavealwaysbeencentraltoorganisationsbuttheirstrategicimportanceisincreasingzz

intoday’sknowledge-basedindustries.

Whenproperlymotivated,evenordinarypeoplecandeliverextraordinaryresults.zz

Thebenefitarisingfromcompetitiveadvantagebasedoneffectivepersonnelmanagementzz

issuchanadvantagethatcannotbeemulatedbyothers.

The HRM of an organisation is an important non-imitable resource if it is practicedzz

effectivelyandefficiently.

2.5 Keywords

Competency:Abilitytoperformexceptionallywellandincreasethestockoftargetedresourceswithinthefirm

Competitive Advantage: Itallowsafirmtogainanedgeoverrivalswhencompeting.Itcomesfromafirm’sabilitytoperformactivitiesmoredistinctivelyandmoreeffectivelythanrivals.

Core Competencies:Corecompetenciestendtobelimitedinnumberbuttheydefinitelyofferasolidbasisfortechnologyinnovation,productdevelopmentandservicedelivery.

Effectiveness:Theextenttowhichgoalshavebeenmet

Efficiency:Thedegreetowhichoperationsarecarriedoutinaneconomicalway

Horizontal Fit: IndividualHR strategic should cohere by being linked to each other to offermutualsupport.

Management Development: Traininganddevelopmentprogrammesdesignedtoprovidenewmanagersandexistingmanagerswiththeresourcesneededtobecomemoreeffective intheirroles.


Notes


Strategic Human Resources Management: ThelinkingofHRMwithstrategicgoalsandobjectivesin order to improve business performance and develop organisational cultures that fosterinnovationandflexibility.

Superiority:Thisrequiressingle-mindedfocusoncustomerneedsandexpectations.

Vertical Fit:Successfulorganizationalperformancedependsonaclosefitbetweenbusinessandhumanresourcestrategy.


1. DefinethetermSHRM.

2. Whatismeantbycompetitiveadvantage?

3. ExplaintheHRM’sroleincreatingcompetitiveadvantage.

4. WhatismeantbyInimitability?

5. ExplaintheAppropriability.

6. Why is it important for a company to make its human resources into a competitiveadvantage?HowcanHRprofessionalscontributetodoingso?

7. DescribethecharacteristicsofthenewroleoftheHRexecutive–thatofstrategicpartner’withtopmanagement.

8. DescribeHR’sroleasastrategicpartnerinformulatingandinexecutivestrategy.

9. Why is a competitive advantage based onheavy investment in human resourcesmoresustainablethaninvestmentinothertypesofassets?

10. To be a strategic business contributor, HR managers must enhance organisationalperformance,expandhumancapital,andbecost-effective.DiscusshowHRprofessionalsmustbalancethecompetingdemandsmadeonthem.


1. False 2. False

3. False 4. False

5. False 6. False

7. False 8. False

9. True 10. not better

11. reduce 12. morecompetitive.

13. fail 14. exceptionally

15. workforce


Books Aswathapa,K.(2008)5thed.Human Resource Management, Tata McGraw Hill.

DipakKumarBhattacharyya, Human Resource Management,ExcelBooks.


Notes



H.J. Bernardin, Human Resource Management,TataMcGrawhill,NewDelhi,2004.


Madhurima Lall and Sakina Qasim Zaidi,Human Resource Management, ExcelBooks.


RaoP.S.(2008),Essentials of Human Resource Management and Industrial Relations, Text cases and Games, HimalayaPublication.

Online links http://www.iimahd.ernet.in/publications/data/2004-06-04manjari.pdf

http://www.shrmindia.org/strategic-hrm

http://www.palgrave.com/business/brattonandgold/docs/bgcha02.pdf

http://www.citehr.com/1524-strategic-hrm.html


Notes


Unit 3: Job Analysis, Job Enrichment and Job Enlargement

CONTENTS

Objectives

Introduction

3.1 JobAnalysis

3.1.1 TraditionalViews

3.1.2 ModernViews

3.1.3 UsesofJobAnalysis

3.1.4 ProcessofJobAnalysis

3.1.5 Job Description

3.1.6 JobSpecification

3.2 MethodsforCollectingJobAnalysisInformation

3.3 JobEnrichment

3.4 JobEnlargement

3.5 HumanResourcePlanningProcess

3.5.1 Steps in HR Planning

3.5.2 Detailed Steps in HR Planning Process

3.6 AffectingFactorsanditsLinkwithStrategicPlanning

3.7 HumanResourceInformationSystem

3.8 Summary

3.9 Keywords



Objectives


Definethetermsjobanalysis,jobenrichmentandjobenlargement.zz

Discussthemethodsforcollectingjobanalysisinformationzz

Statetherelevanceofhumanresourceplanningprocesszz

Understandtheaffectingfactorsanditslinkwithstrategicplanningzz

Explainthehumanresourceinformationsystemzz

Introduction

JobAnalysis is the process of studying and collecting information relating to the operationsandresponsibilityofaspecificjob.Theimmediateproductsofthisanalysisarejobdescriptionandjobspecifications.Jobanalysisisasystematicapproachtodefiningthejobrole,description,


Notes


requirements,responsibilities,evaluation,etc.Ithelpsinfindingoutrequiredlevelofeducation,skills,knowledge,training,etc.forthejobposition.Italsodepictsthejobworthi.e.,measurableeffectivenessofthejobandcontributionofjobtotheorganization.Thus,iteffectivelycontributestosettingupthecompensationpackageforthejobposition.Jobanalysisisaprocesstoidentifyanddetermineindetailtheparticularjobdutiesandrequirementsandtherelativeimportanceofthesedutiesforagivenjob.Itisaprocesswherejudgmentsaremadeaboutdatacollectedona job.

3.1 Job Analysis

Jobanalysisisanessentialandpervasivehumanresourcetechniqueandthestartingpointforotherhumanresourceactivities.Simplystated,jobanalysisisaformalanddetailedexaminationof jobs.It isasystematicinvestigationofthetasks,dutiesandresponsibilitiesnecessarytodoajob.Ajobconsistsofagroupoftasksthatmustbeperformedforanorganizationtoachieveitsgoals.Ataskisanidentifiableworkactivitycarriedoutforaspecificpurpose,forexample,typingaletter.Adutyisalargerworksegmentconsistingofseveraltasks(whicharerelatedbysomesequenceofevents)thatareperformedbyanindividual,forexample,pickup,sortoutanddeliverincomingmail.Jobresponsibilitiesareobligationstoperformcertaintasksandduties.

Jobanalysisisanimportanthumanresourceactivitybecauseitidentifieswhatpeopledointheirjobsandwhattheyrequireinordertodothejobsatisfactorily.Theinformationaboutajobisusuallycollectedthroughastructuredquestionnaire.

There are two views regarding the job analysis: Traditional andModern. Let’s discuss thembriefly.

3.1.1 Traditional Views

Jobanalysisistheprocessofobtaininginformationaboutjobszz

Itisanimportanthumanresourceactivityforavarietyofreasons.zz

Jobsareimportanttoindividuals.zz

Theyhelpdeterminestandardsofliving,placesofresidence,statusandevenone’ssensezz

of self-worth.

Jobsareimportanttoorganizationsbecausetheyarethemeansofachievingorganizationalzz

objectives.

Traditionally,jobsaredefinedinarigidway—alongprescribedlines.zz

Thejobincumbentsareexpectedtocarryoutworkbystrictlyadheringtoasetofrulesandzz

regulations.

Thejobisdesignedtobeimmutableandunchangingirrespectiveofthevariousincumbentszz

whocarryoutworkatdifferentpointsoftime.

Inthetraditionalview,thus,thereisastraightforwardassumptionthatjobsexistandtheyzz

needtobescrupulouslylookedaftertoobtainresults.

3.1.2 Modern Views

AccordingtoTomPeters(ThrivingonChaos,London,Pan1989)theentireconceptofjobzz

issomewhatobsolete.

In a fast changing environment, “jobs are nothing but rigid solutions to an elasticzz

problem”.


Notes


Anorganizationisnotastructureofunchangingjobs.zz

Itis,infact,madeupofconstantlychangingactivitiesandprojects.zz

Inreality,jobsarenotstatic.zz

Technologicaladvancesandcompetitivepressuresmayoftenforceanorganizationtoputzz

moreemphasisoncharacteristicsofsuccessfulperformanceratherthanonstandard jobduties,tasksetc.

Thesamejob,moreover,mightbehandleddifferentlyatdifferenttimesoftheyear.zz

Thejobiswhattheincumbentmakesofit.zz

Jobtitlesalsoneedtobedesignedcarefully.zz

Inthemodernworld,thefewerthejobtitles,thebetter.zz

Becauseofcertaininherentpremiumvalue,theycarrylotofmeaning.zz

Ifeveryonehasthesametitlewithnostatuswallsandrankdivisions,thentherewillbezz

fewerterritorialfightsbetweenjobholders.

Jobs,tobeuseful,oughttomoveinsyncwithchangingtimes.zz

Theyareexpectedtobeflexibleandadaptable.zz

Themodern Job extinction view, therefore, argues that jobs no longer exist inmodernzz

organizationsduetothedynamicnatureofworkinrapidlychangingbusinessenvironments(Fisher et al).

3.1.3 Uses of Job Analysis

Goodhumanresourcemanagementdemandsofboth theemployeeandtheemployeraclearunderstandingofthedutiesandresponsibilitiestobeperformedonajob.Jobanalysishelpsinthisunderstandingbydrawingattentiontoaunitofworkandits linkagewithotherunitsofwork.Morespecifically,theusesofjobanalysismaybesummarizedthus:

1. Human resource planning: Jobanalysishelpsinforecastinghumanresourcerequirementsintermsofknowledgeandskills.Byshowinglateralandverticalrelationshipsbetweenjobs, it facilitates the formulationof a systematicpromotionand transferpolicy. It alsohelpsindeterminingqualityofhumanresourcesneededinanorganization.

2. Recruitment: Jobanalysisisusedtofindouthowandwhentohirepeopleforfuturejobopenings.Anunderstandingoftheskillsneededandthepositionsthatarevacantinfuturehel3psmanagers toplanandhirepeople inasystematicway.Forexample,acompanymight be traditionally hiringMBA students for equity research. A recent job analysisshowedthat thepositionscouldbefilledbygraduateswithananalyticalbentofmind.Now,thiswouldhelpthecompanyhireequityanalystsfromagreaternumberofavailablegraduatesevenbyofferingaslightlylowersalary.

3. Selection: Withoutaproperunderstandingofwhatistobedoneonajob,itisnotpossibletoselecttherightperson.IfaSuperBazaarmanagerhasnotclearlyidentifiedwhataclerkistodo,itisdifficulttoascertainifthepersonselectedistopositionstoresitems,runacashregister,orkeeptheaccountbooks.

4. Placement and orientation: Afterselectingpeople,wehavetoplacethemonjobsbestsuitedtotheirinterests,activitiesandaptitude.Ifwearenotsureaboutwhatneedstobedoneonajob,itisnotpossibletoidentifytherightpersonsuitedforthejob.Similarly,effectivejoborientation cannot be achieved without a proper understanding of the needs of each job. To teachanewemployeehowtohandleajob,wehavetoclearlydefinethejob.


Notes


5. Training: Ifthereisanyconfusionaboutwhatthejobisandwhatissupposedtobedone,propertrainingeffortscannotbeinitiated.Whetherornotacurrentorpotentialjobholderrequiresadditionaltrainingcanbedeterminedonlyafterthespecificneedsofthejobshavebeenidentifiedthroughajobanalysis.

6. Counseling: Managers can properly counsel employees about their careers when theyunderstandthedifferentjobsintheorganisation.Likewise,employeescanbetterappreciatetheir careeroptionswhen theyunderstand the specificneedsofvariousother jobs. Jobanalysiscanpointoutareasthatanemployeemightneedtodeveloptofurtheracareer.

7. Employee safety: Athoroughjobanalysisrevealsunsafeconditionsassociatedwithajob.Bystudyinghowthevariousoperationsaretakenupinajob,managerscanfindunsafepractices.Thishelpsinrectifyingthingseasily.

8. Performance appraisal: Bycomparingwhatanemployeeissupposedtobedoing(basedonjobanalysis)towhattheindividualhasactuallydone,theworthofthatpersoncanbeassessed.Ultimately,everyorganisationhastopayafairremunerationtopeoplebasedontheirperformance.Toachievethis,itisnecessarytocomparewhatindividualsshoulddo(asperperformancestandards)withwhattheyhaveactuallydone(asperjobanalysis).

9. Job design and redesign: Oncethejobsareunderstoodproperly,itiseasytolocateweakspotsandundertakeremedialsteps.Wecaneliminateunnecessarymovements,simplifycertainstepsandimprovetheexistingonesthroughcontinuousmonitoring.Inshort,wecanredesignjobstomatchthementalmake-upofemployees.

10. Job evaluation: Jobanalysishelpsinfindingtherelativeworthofajob,basedoncriteriasuchasdegreeofdifficulty,typeofworkdone,skillsandknowledgeneeded,etc.This,inturn,assistsindesigningproperwagepolicies,withinternalpayequitybetweenjobs.

3.1.4 Process of Job Analysis

Themajorstepsinvolvedinjobanalysisareasfollows:

1. Organizational analysis: Firstofall,anoverallpictureofvariousjobsintheorganizationhastobeobtained.Thisisrequiredtofindthelinkagesbetweenjobsandorganizationalobjectives,interrelationshipsbetweenjobsandcontributionofvariousjobstotheefficiencyand effectiveness of the organization. The required background information for thispurposeisobtainedthroughorganizationchartsandworkflowcharts.

2. Selection of representative positions to be analyzed: It isnotpossibletoanalyzeall thejobs.Arepresentativesampleofjobstobeanalyzedisdecidedkeepingthecostandtimeconstraintsinmind.

3. Collection of job analysis data: This step involves the collection of data on the characteristics ofthejob,therequiredbehaviourandpersonalqualificationsneededtocarryoutthejobeffectively.Severaltechniquesareavailableforcollectingsuchdata.Careshouldbetakentouseonlyreliableandacceptabletechniquesinagivensituation.

4. Preparation of job description: Thisstepinvolvesdescribingthecontentsofthejobintermsoffunctions,duties,responsibilities,operations,etc.Thejobholderisrequiredtodischargethedutiesandresponsibilitiesandperformtheoperationslistedinjobdescription.

5. Preparation of job specification: This step involves conversion of the job description statements into a job specification. Job specifications is awritten statement of personalattributesintermsoftraits,skills,training,experienceneededtocarryoutthejob.

Jobrequirementskeepchangingwithtime.Technologicaladvancesmaydemandanewapproachtohandle joboperations.Unionagreementsmaygiveagreater say inhandlingcertainotherresponsibilities.Theemployees’attitudemightchange.Inthepast,jobsweredesigned,takingthe


Notes


viewthattheywouldnotchange.Therewasnoattempttolinkchangingjobrequirementswithchangingattitudesofemployeestowardwork.Itisonlyinlate70’smanyorganizationsrealizedtheimportanceofcarryingoutfrequentjobanalysesandtunethejobsin-linewiththementalmake-upofpeoplewhohandlethem–forachievinggreaterefficiencyandhigherproductivity.

Jobanalysisbasicallyincludethestudyofjobdescriptionandjobspecification.

3.1.5 Job Description

AJobDescription(JD)isawrittenstatementofwhatthejobholderdoes,howitisdone,underwhatconditionsitisdoneandwhyitisdone.Itdescribeswhatthejobisallabout,throwinglightonjobcontent,environmentandconditionsofemployment.Itisdescriptiveinnatureanddefinesthepurposeandscopeofajob.Themainpurposeofwritingajobdescriptionistodifferentiatethejobfromotherjobsandstateitsouterlimits.

Contents

Ajobdescriptionusuallycoversthefollowinginformation:

Job title: zz Tellsaboutthejobtitle,codenumber,andthedepartmentwhereit isdone.Agoodtitlewillcloselyapproximatethenatureoftheworkcontentandwilldistinguishthejobfromothers.

Job summary: zz A brief write-up about what the job is all about.

Job activities: zz Adescriptionofthetasksdone,facilitiesused,extentofsupervisoryhelp,etc.

Working conditions: zz Thephysical environmentof job in termsofheat, light,noiseandotherhazards.

Social environment: zz Sizeofworkgroupandinterpersonalinteractionsrequiredtodothejob.

Title Compensationmanager

1. Code HR/3500

2.Department HumanResourceDepartment

3.Summary Responsibleforthedesignandadministrationofemployeecompensationprogrammes.

4. Duties (a) Conductjobanalysis.

(b) Prepare job descriptions for current and projected positions.

(c) EvaluatejobdescriptionsandactasChairmanofJobevaluationCommittee.

(d) Insurethatcompany’scompensationratesareintunewiththecompany’sphilosophy.

(e) Relatesalarytotheperformanceofeachemployee.Conductperiodicsalarysurveys.

(f) Developandadministerperformanceappraisalprogramme.

(g) Developandoverseebonusandotheremployeebenefitplans.

DevelopanintegratedHRinformationsystem.Workingconditions:

Normal.Eighthoursperday.Fivedaysaweek.

Report to Director,HumanResourceDepartment.

Table 3.1: Specimen of Job Description


Notes


Problems with Job Descriptions

JobDescriptionservesasavaluableguideforboththeemployeesandtheemployer.Employeesknowwhattheyaresupposedtodowell inadvance.Employers,ontheotherhand,cantakecollectivestepswhenthedutiescoveredbythejobdescriptionarenotperformedasrequired.Inactualpractice,severalproblemscropupconsciouslyorunconsciouslywhileformulatingjobdescriptions.

It isnot easy to reduceall theessential componentsof a job in the formofa clearandzz

precisedocument.

Jobdescriptionsaresometimesnotupdatedasjobdutieschange.zz

Theycanlimitthescopeofactivitiesofthejobholder,reducingorganizationalflexibility.zz

Writing Clear and Specific Job Descriptions

According toErnestDale, the followingguidelines shouldbekept inmindwhilewriting jobdescriptions:

TheJDshouldindicatethenatureandscopeofthejob,includingallimportantrelationships.zz

Itshouldbebrief,factualandprecise;useactiveverbssuchascollectmail,sortout‘mail’,zz

‘distribute’mail,etc.Avoidstatementsofopinion.Giveaclearpictureofthejob;explainall the duties and responsibilities of the job in greater detail.

Morespecificwordsbechosentoshow(i)thekindofwork,(ii)thedegreeofcomplexity,zz

(iii) thedegreeofskillrequired,(iv)theextenttowhichproblemsarestandardisedand (v)thedegreeandtypeofaccountability.

Theextentofsupervisionavailableshouldalsobeclearlystated.zz

The reporting relationshipsmust also be clearly indicated (e.g.,who reports towhom,zz

frequency,etc.).

Mode of Writing

ThejobanalysthastowritetheJDafterproperconsultationswiththeworkerandthesupervisor.Thepreliminarydraftaboutthejobmustbediscussedinthepresenceofboththeworkerandthesupervisortouncovergaps,deficiencies,etc.Thefollowingmethodissuggestedbyanexpertinthis connection:

Firstly,get thequestionnaireabout the jobfilled inby the immediate supervisorof thezz

employee.

Secondly,thejobanalystmustobservetheactualworkdonebytheemployeeandcompletezz

thejobdescriptionform.

Thirdly, every effortmust bemade to involve the employee and the supervisorwhilezz

finalisingtheJD.

Finally,keeptheJDup-to-datebykeepingtrackofchangingconditionsandincorporatingzz

the relevant ones as and when needed.

3.1.6 Job Specification

Jobspecificationsummarizesthehumancharacteristicsneededforsatisfactoryjobcompletion.Ittriestodescribethekeyqualificationssomeoneneedstoperformthejobsuccessfully.Itspellsout the importantattributesof aperson in termsof education, experience,Skills,Knowledge


Notes


andAbilities(SKAs)toperformaparticularjob.Thejobspecificationisalogicaloutgrowthofajobdescription.Foreachjobdescription,itisdesirabletohaveajobspecification.Thishelpstheorganisationtodeterminewhatkindofpersonsareneededtotakeupspecificjobs.Thepersonalattributesthataredescribedthroughajobspecificationmaybeclassifiedintothreecategories:

Essential attributes: zz Skills,KnowledgeandAbilities(SKAs)apersonmustpossess.

Desirable attributes: zz Qualificationsapersonoughttopossess.

Contra-indicators: zz Attributesthatwillbecomeahandicaptosuccessfuljobperformance.

Ajobspecificationcanbedevelopedbytalkingwiththecurrentjobholdersabouttheattributesrequiredtodothe jobsatisfactorily.Opinionsofsupervisorscouldalsobeusedasadditionalinputs.Checkingthejobneedsofotherorganizationswithsimilarjobswillalsohelpindevelopingjobspecifications.

Jobspecification isuseful in theselectionprocessbecause itoffersaclearsetofqualificationsforanindividualtobehiredforaspecificjob.Likewise,awell-writtenjobspecificationoffersaclearpicturetonewrecruitsofwhattheywillbedoingintheorganization.Aspecimenjobspecificationisgivenbelow:

1. Education MBAwithspecializationinHRM/MAinsocialwork/PGDiplomainHRM/MAinindustrialpsychology.

AdegreeordiplomainLabourLawsisdesirable.

2. Experience Atleast3years’experienceinasimilarpositioninalargemanufacturingcompany.

3.Skill,Knowledge,Abilities Knowledgeofcompensationpracticesincompetingindustries,ofjobanalysisprocedures,ofcompensationsurveytechniques,ofperformanceappraisalsystems.

Skillinwritingjobdescriptions,inconductingjobanalysisinterviews,inmakinggrouppresentations,inperformingstatisticalcomputations.

Abilitytoconductmeetings,toplanandprioritisework.

4.WorkOrientationFactors Thepositionmayrequireupto15percenttravel.

5. Age Preferablybelow30years.

Table 3.2: Job Specification of Composition Manager

Preparinga jobspecification isnotalwayseasy.Regarding thehumanresourcerequirementsofajob,thereisscopefordisagreement.Foraclericaljob,onebankmaydemandhighschooleducation, another bank may demand the services of graduates or even post graduates.Differencesmayalsocropupwhenstatinganattributeasa‘desirable’or‘essential’qualification.ToavoidfurtherconfusionasrightlypointedoutbyMathisandJackson,while“writinganyjobspecification,itisimportanttolistonlythoseSKAsessentialforjobperformance.”

3.2 Methods for Collecting Job Analysis Information

Theskillsandabilitiesnecessaryforsuccessfulperformanceandtheresponsibilitiesinherentinthejobcanbeobtainedthroughsuchmethodsorapproaches:

1. Personal observation: Directobservationisespeciallyusefulinjobsthatconsistprimarilyof observablephysical ability, like the jobs ofdraftsman,mechanic, spinner orweaver.Atrainedobserverobservesaworker,recordingwhattheworkerdoes,howtheworkisdone,andhowlongittakes.Therearetwotypesofobservation:

(a) Continuousobservationinvolvesobservingajoboveragivenperiodoftime.


Notes


(b) Sampling involves observing several incumbents over random, relatively shortperiods of time. Observation is a simple and frequently used method of jobanalysis.

2. Questionnaires: Properlydraftedquestionnairesaresentouttojob-holdersforcompletionand are returned to supervisors. The information received is often unorganized andincoherent.Theideainissuingquestionnaireistoelicitthenecessaryinformationfromjobholderssothatanyerrormayfirstbediscussedwiththeemployeeandafterduecorrections,maybesubmittedtothejobanalyst.Therearetwotypesofquestionnaires:Thestructuredquestionnaireusesastandardizedlistofworkactivities,calledataskinventory,thatjobincumbentsorsupervisorsmayidentifyasrelatedtothejob.Inaddition,therespondentmay also identify additional information such as howmuch time is spent on the task,the amount of supervision required, and/or the expertise required. The open-endedquestionnaireasksthejobincumbenttodescribetheworkinhisorherownwords.

3. Maintenance of log records: Theemployeemaintainsadailyrecordsofdutiesheperforms,markingthetimeatwhicheachtaskisstartedandfinished.Itisatime-consumingprocessand moreover it does not give desirable information on supervisor relationship, theequipmentusedandworkingconditions.

4. Personal interviews: May be held by the analysts with the employee and answer torelevantquestionsmayberecorded.Themethodistime-consumingandcostly.Atrainedjobanalystinterviewsajobincumbent,usuallyutilizingastandardizedformat.Sometimesmorethanoneworkerareinterviewed,andtheresultsareaggregated.Anothervariationisthegroupinterview,whereseveralincumbentsareinterviewed.

5. Critical incident:Behaviorallybasedcriticalincidentsareusedtodescribework,andajobanalystdeterminesthedegreeofeachbehaviorthatispresentorabsentinthejob.

6. Diary: The job incumbent records activities and tasks in a log or diary as they areperformed.

7. Checklist: Aworker or supervisor checks items on a standardized task inventory thatapplytothejob.Checklistsmaybecustom-madeorpurchasedfromanoutsidevendor.

8. Technical conference: Several experts (often called “subjectmatter experts”) on the jobcollaboratetoprovideinformationabouttheworkperformed.Ajobanalystfacilitatestheprocess and prepares the job description based on the consensus of the technical experts.

!Caution Incertainapplications,twoormoremethodsmaybecombined.Anexampleistheobservation-interview.

3.3 Job Enrichment

Job enrichment is away tomotivate employees by giving them increased responsibility andvariety in their jobs. Many employers traditionally believed that money was the only truemotivating factor for employees and that if youwanted togetmoreworkoutof employees,offeringthemmoremoneywastheonlywaytodoit.Whilethatmaybetrueforasmallgroupofpeople,themajorityofworkerstodayliketoworkandtobeappreciatedfortheworktheydo.Jobenrichment—allowingtheemployeestohavemorecontrolinplanningtheirworkanddecidinghowtheworkshouldbeaccomplished—isonewaytotapintothenaturaldesiremostemployeeshavetodoagoodjob,tobeappreciatedfortheircontributionstothecompany,andtofeelmoreapartofthecompanyteam.

Thepurpose of job enrichment is to improve the quality of an employee’s job and thereforemotivatetheemployeetoaccomplishmore.However,inorderforjobenrichmenttowork,the


Notes


employeehastodesireandacceptnewwaysofaccomplishingtasks.Someemployeeslacktheskills andknowledge required toperformenriched jobs,while others are quite happydoingroutinejobsbecausetheyfeelthecurrentworksituationisrelativelystress-free.Itislikelythatthesetypesofemployeeswouldnotlikejob-enrichmentactivitiesandwouldnotacceptthenewwayofdoing things.Therefore,asking foremployee inputandkeepingcommunication linesopenisessentialtothesuccessofjob-enrichmentprograms.

Jobenrichmenthas itsroots inFrederickHerzberg’s two-factor theory,accordingtowhichtwoseparatedimensionscontributetoanemployee’sbehavioratwork.Thefirstdimension,knownas hygiene factors, involves the presence or absence of job dissatisfactions, such as wages,workingenvironment,rulesandregulations,andsupervisors.Whenthesefactorsarepoor,workisdissatisfyingandemployeesarenotmotivated.However,havingpositivehygienefactorsdoesnotcauseemployeestobemotivated;itsimplykeepsthemfrombeingdissatisfied.TheseconddimensionofHerzberg’stheoryreferstomotivators,whicharefactorsthatsatisfyhigher-levelneedssuchasrecognitionfordoingagoodjob,achievement,andtheopportunityforgrowthandresponsibility.Thesemotivatorsarewhatactuallyincreasejobsatisfactionandperformance.Jobenrichmentbecomesanimportantstrategyatthispointbecauseenrichingemployees’jobscanhelpmeetsomeoftheirmotivationalneeds.Therearebasicallyfiveareasthatarebelievedtoaffectanindividualemployee’smotivationandjobperformance:skillvariety,taskidentity,tasksignificance,autonomy,andfeedback.Jobenrichmentseekstofindpositivewaystoaddresseachoftheseareasandthereforeimproveemployeemotivationandpersonalsatisfaction.

Skill varietyinvolvesthenumberofdifferenttypesofskillsthatareusedtodoajob.Thisareais importantbecauseusingonlyoneskill todothesametaskrepeatedlycanbequiteboring,typicallycausingtheemployee’sproductivitytodecreaseafteraperiodoftime.However,usingavarietyofskillsinajobwilltendtokeeptheemployeemoreinterestedinthejobandmoremotivated.

Onewaybusinessesarefocusingonthisareaisthroughjob rotation,thatis,movingemployeesfrom job to jobwithin the company, thereby allowing employees a variety of tasks in theirworkandhelpingpreventboredom.Whilethisprocesscanbecostlytothecompanybecauseemployeesmustbetrainedinseveraldifferentareas,thecosttendstobebalancedbytheincreaseinmoraleandproductivity.Jobrotationalsogiveseachemployeetheopportunitytoseehowthedifferentjobsofacompanyfittogetherandgivesthecompanymoreflexibilityincoveringtaskswhenworkersareabsent.However,whilejobrotationisagoodwaytoenrichemployees’jobs,itcanalsohinderperformance:Havingtoknowseveraldifferentjobsinordertorotate,canpreventemployeesfrombecomingproficientatanyofthejobs.Therefore,theadvantagesanddisadvantagesofjobrotationasanenrichmentstrategyhavetobecarefullyweighed.

Task identityisamatterofrealizingavisibleoutcomefromperformingatask.Beingabletoseetheendresultoftheworktheydoisanimportantmotivatorforemployees.Onewaytomaketaskidentitycleareristhroughjob enlargement,whichmeansaddingmoretasksandresponsibilitiestoanexistingjob.Forexample,insteadofbuildingjustonecomponentpartofahumidifier,ateamofemployeesbuildstheentireproductfromstarttofinish.Whenusingjobenlargementasanenrichmentstrategy,itisimportantthatenlargingthejobgivestheemployeemoreresponsibilityandmorevariety,notjustmorework.

Task significanceinvolveshowimportantthetaskistoothersinthecompany,whichisimportantinshowingemployeeshowtheworktheydofitsinwiththatdoneintherestoftheorganization.Ifemployeescanseehowtheirworkaffectsothers,itwillbeamotivatortodothebestjobtheycan.

Manycompaniestakenewemployeesonatourofthecompanyandprovidetrainingsessionsonhoweachpartofthecompanyworkstogetherwiththeotherparts.Inordertoacceptandhandleresponsibility,itisimportantthatemployeesknowhowthevariousareasofthecompanyworktogether;withoutthisknowledge,itisverydifficultforthemtohandledecision-making


Notes


responsibilities.Puttingemployeesfromdifferentareasofthecompanyintoplanningteamscanalsohelpthemseethesignificanceofthetaskstheyperform.

Autonomy involves the degree of freedom, independence, and decision-making ability theemployee has in completing assigned tasks. Most people like to be given responsibility; itdemonstratestrustandhelpsmotivateemployeestoliveuptothattrust.Responsibilitycanalsohelpspeedupworkprocessesbyenablingtheemployeetomakedecisionswithouthavingtowaitformanagementapproval.Autonomyisaveryimportantpartofjobenrichmentbecauseitgivestheemployeepowerandafeelingofimportance.

Atypeofjobenrichmentthatrestructuresworktobestmatchtheemployeetothejobisjob redesign. Jobredesigncanfocusoncombiningexistingjobs,formingworkgroups,and/orallowingclosercontactbetweenemployeesandindividualsuppliersorcustomers.Theideabehindjobredesignis tomatch employeeswith a job they like and are best qualified to perform. Self-managedteamsarea typeof jobdesignwherebyemployeesaregrouped into teamsandgivencertainguidelinestofollowaswellasgoalstoaccomplish—andthenleftalonetoaccomplishthosegoals. Self-managedteamsdemonstratethecompany’sfaithintheemployeesandgiveemployeesafeelingofpowerandprideintheworktheyaccomplish.

Feedbackdescribeshowmuchandwhattypeofinformationaboutjobperformanceisreceivedbytheemployee.Itisoneofthemostimportantareasformotivation.Withoutfeedback,employeeshavenowayofknowingwhethertheyaredoingthingscorrectlyorincorrectly.Positivefeedbackhelps tomotivate employeesby recognizing the efforts theyhaveput into theirwork.Whilemonetaryrewardsfordoingagoodjobcanbeastrongincentive,sometimessaying“youdidareallygoodjobonthatproject”canmeanjustasmuch.Correctivefeedbackisalsoimportantbecauseitletsemployeesknowwhatareasneedimprovement.

Therearemanydifferent typesof job-enrichmentactivitiesandprogramsthatcompaniescanimplementtoencourageworkerparticipationandenhancemotivation.Theteamatmosphereisonewaytoenrichjobs.Groupingemployeesintoteamsandallowingtheteamthefreedomtoplan,makedecisions,andaccomplishtheirgoalsgivesemployeesafeelingofimportanceandresponsibility.Itcanalsohelpemployeescomeupwithcreativeideasonwaystoimproveworkactivitiesbygivingthemtheopportunitytoworkcloselywithothers.Askingforandencouragingemployeestogiveinputoncompanystrategiesandplansisanotherwaytoenrichjobs.Oftentimesemployeeshavethebestinputbecausetheyaretheonesactuallyperformingtheactivityonadailybasis.Holdingcompanyawardceremoniescanalsohelptoenrichjobsandmotivateemployeesbyrecognizingindividualemployeesfortheircontributionstothecompany.

Althoughnotmuchisheardofitnowadays,thejobenrichmentmovementofthe1960s,whichwaslargelydesignedandinspiredbytheresearchandwritingsofFrederickHerzberg,hashadaconsiderableinfluenceonthejobdesign.

Did u know?Theaimofjobenrichmentistomaximizetheinterestandchallengeofworkbyprovidingemployeeswithjobshavingthefollowingcharacteristics:

1. Theyarecompletepieceofworkinthesensethattheworkerscanidentifyaseriesoftasksoractivitiesthatendinarecognizableanddefinableproductorservice.

2. Theyprovideemployeeswithasmuchvariety,decision-makingresponsibilityandcontrolaspossibleincarryingoutthework.

3. Theyprovidedirect andquick feedback through thework itselfonhowwell theemployeesaredoingtheirjobs.

Itseekstoimprovebothtaskefficiencyandhumansatisfactionbygivingmorechallengingandresponsibleworkandopportunityforindividualadvancementandgrowth.Anenrichedjobwill


Notes


havemoreresponsibilityandautonomy(verticalenrichment),morevarietyoftasks(horizontalenrichment)andmoregrowthopportunities.

Onthepositiveside,itleadstoincreasedmotivation,performance,satisfaction,jobinvolvementandreducedabsenteeism.

Secondly,itmeetscertainpsychologicalneedsofthejobholders.

Techniquesofjobenrichment:

1. Increasingtheresponsibilityoftheactivity.

2. Providingwiderscope,moresequenceandincreasedpaceofthework.

3. Providingthefreedomofworkbyminimizingcontrolswhentheemployeesareclearlyaccountableforattainingdefinedgoals.

4. Givinganaturalunitofworkeithertoanemployeeorgroupofemployees.

5. Allowingtheemployeestosettheirownstandardsortargets.

6. Introducingnew,difficult,creativetaskstotheemployees.

7. Encouragingemployeeparticipationinplanning,innovationsandcreations.

Notes Stepsinjobenrichment:

1. Selecting those jobs which permit close relation between motivation and jobperformance.

2. Introducingonapilotschemebasis.

3. Startingwiththeassumptionthatthesejobscanbechanged.

4. Brainstormingalistofchangesthatmayenrichthejobs.

5. Concentrating on motivational factors such as achievement, responsibility, self-control.

6. Tryingtochangethecontentof the jobratherthanchangingtheemployeesfromtheir jobs.

7. Providingadequatetraining,guidance,encouragementandthehelp.

8. Introducing with care as job enrichment programmes may be resisted byemployees.

9. Preparing the specific programmes for each project and ensure the controlinformationtomonitortheperformance.

3.4 Job Enlargement

Jobenlargementisa jobdesigntechniquewhereinthereisanincreaseinthenumberoftasksassociatedwithacertainjob.Inotherwords,itmeansincreasingthescopeofone’sdutiesandresponsibilities.The increase in scope isquantitative innatureandnotqualitativeandat thesame level. Jobenlargement is ahorizontal restructuringmethod that aimsat increase in theworkforceflexibilityandatthesametimereducingmonotonythatmaycreepupoveraperiodoftime.Itisalsoknownashorizontalloadinginthattheresponsibilitiesincreaseatthesamelevelandnotvertically.


Notes


Benefits of Job Enlargement

1. Reduced Monotony: Howsoeverinterestingthejobmayappearinthebeginning,soonerorlaterpeoplecomplainofboredomandmonotony.Jobenlargementifplannedcarefullycanhelpreduceboredomandmakeitmoresatisfyingandfulfillingfortheemployees.

2. Increased Work Flexibility: There is an addition to the number of tasks an individualperforms.Thereisthusanincreasedscopeofcarryingouttasksthatareversatileandyetverysimilarincertainaspects.

3. No Skills Training Required: Sincetheindividualhasalreadybeenperformingthetaskinthepast,thereisnogreatrequirementforimpartingofnewskills.Howeverpeopleandtimemanagementinterventionsmayberequired.Thejobthusgetsmoremotivationalfortheoneperformingit.

Difference between Job Enrichment and Job Enlargement

1. Thedifferencebetweenjobenrichmentandjobenlargementisessentiallyofquantityandquality.Whereas job enlargement means increasing the scope of job quantitatively byaddingupmoretasks,jobenrichmentmeansimprovementinthequalityofjobsuchthatemployeesaremoresatisfiedandfulfilled.

2. Jobenrichmentdependsuponjobenlargementforsuccessandthereverseinnottrue.

3. Job enrichment means a vertical expansion in duties and responsibilities and span ofcontrolwhereasinjobenlargementtheexpansionishorizontalinnature.

4. Sinceenrichmentgivesemployeegreaterinsightsinmanagerialfunctioningandabetterworkprofile,itislookeduponasanindicatorofgrowthanddevelopment.Thesameisnot true in case of job enlargementwhich is seen as an employer tactic to increase theworkload.

5. Job enrichment has been found to have greater impact in terms of motivation whencomparedtojobenlargement.

6. Through job enrichment an employee finds satisfaction and contentment in his joband through job enlargement employee feels more responsible andworthwhile in theorganization.

7. Jobenrichmententailsthefunctionsofplanningandorganizingandenlargementinvolvesexecutionofthesame.Bothcomplementeachother,inthatjobenrichmentempowersandenlargementexecutes.

Itinvolvesexpandingthenumberoftaskordutiesassignedtoagivenjob.Itisoppositeofworksimplification.Addingmoretasksordutiestoajobdoesnotmeanthatnewskillsandabilitiesareneededtoperform.Enlargedjobrequireslongertrainingperiodbecausetherearemoretasksto be learned.

Thereishorizontalexpansion.Itis“addingzerotozero”.Theemployeesgenerallyresistit.Itissaidtocontributetoemployeemotivation,howevernovalidclaimshavebeenmadesofar.Jobenlargementprogrammeswouldbesuccessfulonlyifworkersaremoresatisfiedwithjobswhichhave a longer scope.


Notes


Self Assessment

Multiple Choice Questions

1. Whichofthefollowingisnotofferedinajobanalysis?

(a) workerattributes

(b) performanceappraisals

(c) workingconditions

(d) jobspecifications

(e) job description

2. Theadvantageofemployingvariousmethodsofjobanalysisis:

(a) cost

(b) complexity

(c) accuracy

(d) time

(e) participationbyjobincumbentsandmanagers

3. Jobdescriptionsshouldbereviewedby:

(a) supervisors

(b) jobincumbents

(c) humanresourcedepartment

(d) none of the above

(e) all of the above

4. Ajobanalysisquestionnaireshouldincludeallbutthefollowing:

(a) job evaluation

(b) performancestandards

(c) job duties

(d) job status

(e) workingconditions

5. Thebasisforhumanresourceplanningis:

(a) theeconomictrends

(b) demandforemployees

(c) strategicplansofthefirm

(d) budgets

(e) supplyofemployees


Notes


6. Workforcefactorsthatinfluencedemandinclude:

(a) expansionmoves

(b) terminations

(c) strategic plans

(d) sales projections

(e) organisational design

7. Thefirstfactorindecidingthesupplyoflabouris:

(a) developingstaffingtables

(b) issuingadvertisements

(c) preparingreplacementcharts

(d) analysinglabourmarkets

(e) auditingpresentemployees

8. Techniquesofestimatingdemandforhumanresources:

(a) mereapproximations

(b) arerarelydone

(c) involve HR audits

(d) canbeveryaccurate

(e) employskillsinventories

3.5 Human Resource Planning Process

Humanresourceormanpowerplanning is,“theprocessbywhichamanagementdetermineshowanorganizationshouldmovefromitscurrentmanpowerpositiontoitsdesiredmanpowerposition.Throughplanning,amanagementstrivestohavetherightnumberandtherightkindsofpeopleattherightplaces,attherighttimetodothings,whichresultsinboththeorganizationandindividualreceivingthemaximumlong-rangebenefits.”

AccordingtoWickstrom,humanresourceplanningconsistsofthefollowingactivities:

1. Forecastingfuturemanpowerrequirements,eitherintermsofmathematicalprojectionsoftrendsintheeconomicenvironmentanddevelopmentinindustry,baseduponthespecificfutureplansofacompany;

2. Makinganinventoryofthepresentmanpowerresourcesandassessingtheextenttowhichtheseresourcesareemployedoptimally;

3. Anticipatingmanpowerproblemsofprojectingpresentresourcesintofutureandcomparingthemwithforecastofrequirementstodeterminetheiradequacy,bothquantitativelyandqualitatively.

Theprocess of human resourceplanning is oneof themost crucial, complex and continuingmanagerial function.Thisprocesshasgained importance in Indiawith the increase insizeofthe enterprises, complex manufacturing process, and adoption of professional managementtechniques.Itisamulti-stepprocess.


Notes


3.5.1 Steps in HR Planning

Forecasting

HRplanningrequires thatwegatherdataon theorganizationalgoalsobjectives.Oneshouldunderstandwheretheorganizationwantstogoandhowitwantstogettothatpoint.Theneedsoftheemployeesarederivedfromthecorporateobjectivesoftheorganization.Theystemfromshorterandmedium-termobjectivesandtheirconversionintoactionbudgets.

Inventory

Afterknowingwhathumanresourcesarerequiredintheorganization,thenextstepistotakestockofthecurrentemployeesintheorganization.TheHRinventoryshouldnotonlyrelatetodataconcerningnumbers,ages,andlocations,butalsoananalysisofindividualsandskills.Skillsinventoryprovidesvalidinformationonprofessionalandtechnicalskillsandotherqualificationsprovided in thefirm. It revealswhat skills are immediately availablewhen compared to theforecastedHRrequirements.

Audit

WedonotliveinastaticworldandourHRresourcescantransformdramatically.HRinventorycalls forcollectionofdata, theHRaudit requires systematicexaminationandanalysisof thisdata.Theauditlooksatwhathadoccurredinthepastandatpresentintermsoflabourturnover,ageandsexgroupings,trainingcostsandabsence.Basedonthisinformation,onecanthenbeabletopredictwhatwillhappentoHRinthefuture,intheorganization.

HR Resource Plan

Here,welookatcareerplanningandHRplans.Peoplearethegreatestassetsinanyorganization.Theorganizationisatlibertytodevelopitsstaffatfullpaceinthewayideallysuitedtotheirindividual capacities.Themain reason is that theorganization’sobjectives shouldbealignedasnearaspossible,ormatched,inordertogiveoptimumscopeforthedevelopingpotentialofitsemployees.Therefore,careerplanningmayalsobereferredtoasHRplanningorsuccessionplanning.

Actioning of Plan

Therearethreefundamentalsnecessaryforthisfirststep:

1. Knowwhereyouaregoing.

2. Theremustbeacceptanceandbackingfromtopmanagementfortheplanning.

3. Theremustbeknowledgeoftheavailableresources(i.e.)financial,physicalandhuman(managementandtechnical).

Onceinaction,theHRplansbecomecorporateplans.Havingbeenmadeandconcurredwithtopmanagement,theplansbecomeapartofthecompany’slong-rangeplan.FailuretoachievetheHRplansduetocost,orlackofknowledge,maybeaseriousconstraintonthelong-rangeplan.


Notes


3.5.2 Detailed Steps in HR Planning Process

TheprocessofHRPusuallyfollowedinalargeorganization,consistsofthefollowingsteps:

Forecasting the Demand for Human Resources: zz Mostfirmsestimatehowmanyemployeestheyrequireinfuture.Thedemandforhumantalentatvariouslevelsisprimarilyduetothe following factors:

External challenges: z� Thesechallengesarisefromthreeimportantsources:

Economicdevelopments:Liberalization,openingupofbankingsector,capitalz�

market reforms, theon-line trading systemshave createdhugedemand forfinanceprofessionalsduring1990-1995 in India.The late90ssawtheriseofmanufacturing, FMCG, Pharmaceuticals, Auto-components, Healthcareand Chemical Industries in a steady manner. Consequently, the demandfor Engineering and Management graduates, Scientists and Healthcareprofessionalshaspickedupinrecenttimes.

Political,legal,socialandtechnicalchanges:Thedemandforcertaincategoriesz�

ofemployeesandskills is also influencedbychanges inpolitical, legal andsocialstructureinaneconomy.Likewise,firmsemployinglatest technologyin construction, power, automobiles, software, etc., have greatly enhancedthe worth of technicians and engineers during the last couple of years.Technology, however, is a double-edgedweapon and hence, its impact onHRplansisdifficulttopredict.Forexample,computerisationprogrammeinBanks, Railways, Post and TelegraphDepartmentsmay reduce demand inone department (book keeping, for example)while increasing it in another(suchascomputeroperations).Hightechnologywithallitsattendantbenefitsmay compel organizations to go lean and downsize workforce suddenly.Employmentplanningundersuchsituationsbecomescomplicated.

Competition:Companiesoperatinginfieldswherealargenumberofplayersz�

arebentuponcuttingeachother’sthroat(withaviewtoenhancetheirmarketshares)oftenreduce theirworkforce.Competition isbeneficial tocustomersbutsuicidalforcompaniesoperatingonthinmargins.Suchcompanieshaveto necessarily go ‘lean’ by reducing their workforce. On the other hand,companiesthataredoingwellandprogressingsmoothlywillalwayslookforpeoplewithcriticalskills.

Organizational decisions: z� The organization’s strategic plan, sales and productionforecastsandnewventuresmustallbetakenintoaccountinemploymentplanning.IfBritanniaIndustriesLtdexpectshigherdemandforbiscuitsandbread,thelong-termHRplanmusttakethisintoconsideration.Likewise,ifittriestoventureintootherlucrativefieldssuchasmilkbasedproductsandconfectioneryitems,thedemandforpeoplepossessingrequisiteskillsinthoseareasinthenextcoupleofyearsshouldbelookedintocarefully.

Workforce factors: z� Demand is modified by retirements, terminations, resignations,deathsandleavesofabsence.Pastexperience,however,makestherateofoccurrenceoftheseactionsbyemployeesfairlypredictable.

Forecasting techniques: z� Themanpower forecasting techniquescommonlyemployedbymodernorganizationsaregivenbelow:

Judgemental Methods: The services of experts are pressed into service inz�

ordertoforecastthedemandforlabour.Expertslookintoquantitativedata,use their judgementandexperiencewhilearrivingat appropriatenumbers.Whenconfrontedwithinsufficientdataanduncertainenvironments,smaller


Notes


organizationshavenochoicebutdependonforecastsbyexperiencedpeople.Thesimplestway—knownas thebottomupforecastingmethod—toarriveat themagicalfigure is toseekopinionandguidance fromtheunit,branchordivisiontoprepareanestimate.Thesumofallsuchestimatespreparedatvariouslevelsindifferentdivisionsorbranchesisthedemandforecastforthewholeorganisation.Inthetopdownforecastingmethod,theexercisewouldcommencewithtopmanagers.Theyoftenmeettodiscusshowtrends,businessplans,theeconomyandotherfactorswouldimpacttheorganisationinquestion.The best and the worst possible scenarios are looked into—in addition tootherenvironmentalfactors—beforeanestimateismade.Mostorganizationsprefer to use the Delphi technique for this purpose. The Delphi techniqueisaforecastingaidbasedonaconsensusofapanelofexperts—whodonotmeetfacetofacebutexchangenotesthroughanonymousquestionnaires.Theexpertsrefinetheiropinions,phasebyphase,untiltheyreachaconsensus.

Trend analysis:HRneeds can be estimated by examining past trends. Pastz�

ratesofchangecanbeprojectedintothefutureoremploymentgrowthcanbeestimatedbyitsrelationshipwithaparticularindex.

MathematicalModels:Severalmathematicalmodels,withtheaidofcomputersz�

are also used to forecast HR needs, e.g., regression, optimization models,budgetandplanninganalysis.

ComputerModels:Computerized forecasts couldbepreparedby includingz�

importantvariablessuchasdirect labourhoursneededtoproduceoneunitof product and three possible sales outcomes—maximum, minimum andprobablefortheproductinquestion.Atypicalforecastintermsofassemblyline workers and additional secretarial staff required could be generatedeasily.Inaretailingunitforexample,basedonestimatedstoretrafficandsalesforecasts,staffingrequirementscouldbepredictedwiththehelpofcomputersinanobjectiveway.Ofcourse,suchforecastswouldbeusefulonlywhenotherqualitativefactorsarealsotakenintoaccount.

To proceed systematically, human resource professionals generally followthreesteps.Let’sexaminethesestepsasappliedinrespectof,sayacommercialbank.

Workforce analysis: The average loss of manpower due to leave,z�

retirement,death,transfer,discharge,etc.,duringthelast5yearsmaybetakenintoaccount.Therateofabsenteeismandlabourturnovershouldalsobetakenintoaccount.Thenatureofcompetitionsayfromforeignbanks,othernon-bankingfinancialinstitutionsmayalsobeconsideredheretofindoutactualrequirementsinayear.

Whilesomeoftheinterchangesandexternalsupplycouldbepredicted(growth opportunities, promotions, transfers, retirements, etc.) othersarenotsoeasytopredict.Pastexperienceandhistoricaldatamayhelpbankmanagersinthisregard.

Workloadanalysis:Theneedformanpowerisalsodeterminedonthez�

basisofwork-loadanalysis,whereinthecompanytriestocalculatethenumberofpersonsrequiredforvariousjobswithreferencetoaplannedoutput–aftergivingweightagetofactorssuchasabsenteeism,idletime,etc.Thefollowingexamplewouldthrowlightonthis:

While determining manpower requirements through work loadanalysis, commercial banks may have to take the following factors


Notes


intoconsideration: (i) thenumberof transactions tobehandledbyanemployee; (ii) the amount of deposits and advances per employee;(iii) special requirements in respect of managing extension counters,currencychests,mobilebranches,etc.;(iv)futureexpansionplansofthebankconcerned.Managerial judgement–astudyof thepast trends–mayserveasausefulguideinthisregard.Statisticalandeconometricmodelsmayalsobepressedintoservice,sometimes,dependingontherequirement(s).

Job analysis: Job analysis helps in finding out the abilities or skillsz�

required todo the jobs efficiently.Adetailed studyof jobs isusuallymade to identify the qualifications and experience required for them.Jobanalysisincludestwothings:Jobdescriptionandjobspecification.Jobdescriptionisafactualstatementofthedutiesandresponsibilitiesofaspecificjob.Itgivesanindicationofwhatistobedone,howitistobedoneandwhyitistobedone.Jobspecificationprovidesinformationon the human attributes in terms of education, skills, aptitudes andexperiencenecessarytoperformajobeffectively.

Preparing Manpower Inventory (Supply Forecasting): zz The basic purpose of preparing manpowerinventoryistofindoutthesizeandqualityofpersonnelavailablewithintheorganisationtomanvariouspositions.Everyorganisationwillhavetwomajorsourcesofsupplyofmanpower:internalandexternal.

Internal labour supply: z� Aprofileofemployeesintermsofage,sex,education,training,experience,joblevel,pastperformanceandfuturepotentialshouldbekeptreadyforusewheneverrequired.Requirements intermsofgrowth/diversification, internalmovementofemployees(transfer,promotions,retirement,etc.)mustalsobeassessedinadvance.Thepossibilitiesofabsenteeismandturnovershouldbekept inmindwhilepreparingtheworkforceanalysis.Throughreplacementchartsorsuccessionplans,theorganizationcanevenfindouttheapproximatedate(s)bywhichimportantpositionsmayfallvacant.Frequentmanpowerauditsmaybecarriedouttofindouttheavailabletalentintermsofskills;performanceandpotential.

Forecasting Techniques: z� Some of the important forecasting techniques may besummarizedthus:

Staffingtable:Itshowsthenumberofemployeesineachjob.Ittriestoclassifyz�

employeesonthebasisofage,sex,position,category,experience,qualifications,skills, etc. A study of the table indicates whether current employees areproperlyutilizedornot.

Markovanalysis:Thistechniqueuseshistoricalratesofpromotions,transferz�

andturnover toestimate futureavailability in theworkforce.Basedonpastprobabilities,onecanestimatethenumberofemployeeswhowillbeinvariouspositions with the organisation in future.

Skillsinventory:Askillsinventoryisanassessmentoftheknowledge,skills,z�

abilities,experienceandcareeraspirationsofeachofthecurrentemployees.Thisrecordshouldbeupdatedatleastevery2yearsandshouldincludechangessuchasnewskills,additionalqualifications,changedjobdutiesetc.Ofcourse,confidentiality is an important issue in setting up such an inventory.Onceestablished,sucharecordhelpsanorganisationtoquicklymatchforthcomingjobopeningswithemployeebackgrounds.

Replacementchart: It shows theprofileof jobholdersdepartment-wiseandz�

offersasnapshotofwhowillreplacewhomifthereisajobopening.


Notes


External labour supply: z� Whentheorganisationgrowsrapidly,diversifiesintonewerareasofoperations(merchantbanking,capitalmarketoperations,mutualfunds,etc.inthecaseofabank)orwhenitisnotabletofindthepeopleinternallytofillthevacancies,ithastolookintooutsidesources.Totheextentanorganizationisabletoanticipateitsoutsiderecruitmentneedsandlooksintothepossiblesourcesofsupplykeepingthemarkettrendsinmind,itsprobleminfindingtherightpersonnelwithappropriateskillsattherequiredtimewouldbecomeeasier.

ImportantBarometersofLabourSupplyare:

Netmigrationintoandoutoftheareaz�

Educationlevelsofworkforcez�

Demographicchangesinpopulationz�

Technologicaldevelopmentsandshiftsz�

PopulationMobilityz�

Demandforspecificskillsz�

National,regionalunemploymentratesz�

Actionsofcompetingemployersz�

Governmentpolicies,regulations,pressuresz�

EconomicForecastsforthenextfewyearsz�

The attractiveness of an areaz�

Theattractivenessofanindustryinaparticularplacez�

Organizations,nowadays,donotgenerallytrackthequalificationsofthousandsofemployeesmanually.Detailsofemployeesintermsofknowledge,skills,experience,abilitiesetc.,arecomputerized,usingvariouspackagedsoftwaresystems.Therearemorethan300computerizedhumanresourceinformationsystemsavailablenow.

Determining Manpower Gaps: zz The existing number of personnel and their skills (fromhumanresourceinventory)arecomparedwiththeforecastedmanpowerneeds(demandforecasting) to determine the quantitative and qualitative gaps in the workforce. Areconciliationofdemandand supply forecastswillgiveus thenumberofpeople toberecruitedormaderedundantasthecasemaybe.ThisformsthebasisforpreparingtheHR plan.

Formulating HR Plans: zz Organizationsoperateinachangingenvironment.Consequently,Human resource requirementsalso change continually.Changes inproductmix,unionagreements,andcompetitiveactionsaresomeof the important things thatneedspecialattention.ThehumanresourcerequirementsidentifiedalongtheprocedureoutlinedintheaboveboxneedtobetranslatedintoaconcreteHRplan,backedupbydetailedpolicies,programmes and strategies (for recruitment, selection, training, promotion, retirement,replacement,etc.).

Recruitment plan: z� Will indicatethenumberandtypeofpeoplerequiredandwhentheyareneeded;specialplanstorecruitrightpeopleandhowtheyaretobedealtwithviatherecruitmentprogramme.

Redeployment plan: z� Will indicate the programmes for transferring or retrainingexistingemployeesfornewjobs.


Notes


Redundancy plan: z� Will indicatewho is redundant,when andwhere; theplans forretraining,where this ispossible; andplans forgoldenhandshake, retrenchment,lay-off,etc.

Training plan: z� Will indicate the number of trainees or apprentices required andthe programme for recruiting or training them; existing staff requiring trainingor retraining; new courses to be developed or changes to be effected in existingcourses.

Productivity plan: z� Will indicate reasons for employee productivity or reducingemployee costs throughwork simplification studies,mechanization, productivitybargaining;incentivesandprofitsharingschemes,jobredesign,etc.

Retention plan: z� Willindicatereasonsforemployeeturnoverandshowstrategiestoavoidwastagethroughcompensationpolicies;changes inworkrequirementsandimprovementinworkingconditions.

Control points: z� The entire manpower plan be subjected to close monitoring fromtime to time.Control points be set up to find out deficiencies, periodic updatingofmanpower inventory, in the lightof changingcircumstances,beundertaken toremovedeficienciesanddevelopfutureplans.

Self Assessment


9. Supervisorsshouldnotbeinvolvedinjobanalysis.

10. Feedbackishighlydiscouraging.

11. Jobdescriptionsarelittlemorethanalistoftasks.

12. Jobsarethemeansofaccomplishingorganisationalobjectives.

13. Jobanalysisisaninformalexaminationofjobs.

14. Jobanalysishelpsinforecastinghumanresourcerequirements.

15. Humanresourceforecastscanbeveryaccurate.

16. Small scale units benefit less than large scale undertakings from human resourceplanning.

17. Thebasisforhumanresourceplanningisthesupplyofemployees.

18. Theroleofdemographicsinestimatingemployeesupplyiseasytopredict.

19. Thefirststepindeterminingsupplyisplacingadvertisementsinnewspapers.

20. Strategicplansbecomeoperationalthroughbudgets.

21. Onlyrelevantlabourmarketsshouldbeanalysedtoestimatesupply.

22. Plannershavelittleflexibilityindealingwithshorttermshortagesofemployees.

3.6 Affecting Factors and its Link with Strategic Planning

Following are the factors affecting HRP:

Typeandstrategyoforganizationzz

Timehorizonszz


Notes


TypeandQualityofforecastingInformationzz

Nature of job Outsourcing zz

Environmentaluncertaintieszz

Organisationalgrowthcyclezz

Existing Manpower Inventory:zz Utilizationof theexistingmanpower is thefirstbasisofmanpowerplanning and is the startingpoint of all planningprocesses. To analyse theexistingmanpower,onemust study thepositionof totalmanpowerbydividing it intogroupsonthebasisoffunction,occupation,levelofskillsorqualification.

Wastage:zz Forgoodplanning,appropriateadjustmentintheexistingstockofmanpowershouldbemadeforthepossiblewastageofmanpowercausedbyanyforeseeablechangesintheorganization.

Future Manpower Requirements:zz After evaluating the existing stock of manpowerand analyzing the various factors ofwastage caused by any foreseeable change in theorganization, one may very easily assess the future requirements of manpower in anindustry.

SHRMrealizesthatpeoplecanmakeorbreakanorganisationbecausealldecisionsmaderegardingfinance,marketingoperationsortechnologiesaremadebyanorganisation’speople.SoitaccordshighestprioritytomanagingpeopleandtriestointegrateallHRprogrammesandpolicieswiththeoverallcorporatestrategy.Itcompelspeopleatall levelstofocusmoreonstrategicissuesratherthanoperationalissues.Moreimportantly,itbelievesthatthereisnobestwaytomanagepeopleinanygivenorganisation.Thereappearstobeno“bestpractices”magicbullet,excepttoorganizeafirm’sHRpracticestofititsstrategyandtosupportthefirm’soperatingandstrategicinitiatives.(BeckerandGerhart)Evenwithinagivenindustry,HRpracticescanvaryextensively,fromoneorganisationtoanother.Armedwithsuchaflexibleapproach,

SHRM tries to develop a consistent, aligned collection of practices, programmes andzz

policiestofacilitatetheachievementoftheorganisation’sstrategicobjectives.

StrategicHRshiftsattention,asagainstthetraditionalHR’sfocusonemployeerelations,zz

topartnershipswithinternalandexternalgroups.Thefocusonmanagingpeopleismoresystemic with an understanding of themyriad factors that impact employees and theorganisationandhowtomanagemultiplerelationshipstoensuresatisfactionatalllevelsoftheorganisation,

StrategicHRistransformationalinnature,inthatithelpsthepeopleandtheorganisationzz

toadapt,learnandactquickly.“Itwillmakesurethatchangeinitiativesthatarefocusedoncreatinghighperformanceteams,reducingcycletimeforinnovation,orimplementingnewtechnologyaredefined,developedanddeliveredinatimelyway”(ULRICH,1998).

StrategicHRisproactiveandconsidersvarioustimeframesinaflexiblemanner.Likewisezz

itpermitsemployeestoprocessworkandcarryoutjobresponsibilitiesinafree-flowingway.Ratherthanbeingenvelopedbytightcontrolsandexcessiveregulations,operationsarecontrolledbywhateverisnecessarytosucceed,andcontrolsystemsaremodifiedasneededtomeetchangingconditions.

Jobdesignisorganic,specializationisreplacedbycrosstrainingandindependenttasksarezz

replacedbyteams,encouragingautonomyatvariouslevels.

Aboveall,strategicHRbelievesthattheorganisation’skeyassetsareitspeople.Itrealizesthatanorganisationcanhavecompetitiveedgeoveritsrivalsifitisabletoattractandretainknowledgeworkerswhocanoptimallyutilizeandmanagetheorganisation’scriticalresources.Inthefinalanalysispeoplearetheorganisation’sonlysustainablecompetitiveadvantage.


Notes


StrategicHRoffersthreecriticaloutcomes:increasedperformanceenhancedcustomerandemployeesatisfactionandincreasedshareholdervalue.Theseoutcomesareaccomplishedthrougheffectivemanagementofstaffing,retentionandturnoverprocesses,selectionofemployeesthatfitwithboththeorganisationalstrategyandculture,cost-effectiveutilisationofemployeesthroughinvestmentinidentifiedhumancapitalwiththepotentialforhigherreturn;integratedHRprogrammesandpoliciesthatclearlyfollowfromcorporatestrategy;facilitationofchangeandadaptationthroughaflexible,moredynamicorganisation;andtighterfocusoncustomerneeds,emergingmarketsandquality.

Task Volkswagen,theautomobilemajorfromGermany,planstosetupanautomobileunitatVisakhapatnam.Theselectionof thisportcity isbasedonthefollowingfactors.Therearealargenumberofengineeringcollegesandpolytechnicsinandaroundthiscity.Thereisa75-yearolduniversitywithgoodresearchfacilities.Beingaportcity,importofplantandmachineryfromGermanyiseasyandabovealltheStateGovernmenthasgivenattractiveconcessionstoVolkswagentosetupitsplanthere.

YouareselectedasHRhead.HowdoyouplantherequirementsofhumanresourcesforVolkswagenindetail.Discussthisplanintheclassforfinetuning.

3.7 Human Resource Information System

It is a systematic procedure for collecting, storing, maintaining, retrieving, validating, dataneededbytheorganizationaboutitsHumanResource.ItisapartoflargerMIS.

HumanResourceManagementSystems(HRMS),HumanResourceInformationSystems(HRIS),Humanresourcetechnology,alsocalledHRmodules,isanintersectionbetweenhumanresourcemanagementandinformationtechnology.ItmergesHRMasadisciplineandinparticular itsbasicHRactivitiesandprocesseswithinformationtechnologyfield,whereastheplanningandprogrammingofdataprocessingsystemsevolvedintostandardizedroutinesandpackagesofEnterpriseResourcePlanning(ERP)software.Onthewhole,theseERPsystemshavetheiroriginonsoftwarethatintegratesinformationfromdifferentapplicationsintooneuniversaldatabase.

Most HRIS contain:

1. Personalhistory–name,dateofbirth,sex.

2. Workhistory–salary,firstdayworked,employmentstatus,positionsintheorganization,appraisal data.

3. Traininganddevelopmentprogrammesundergone.

4. Careerplansincludingmobilityandtransfer.

5. Skillsinventory–skills,education,competencies.

Ajuwon (2002) argues that HR should be proactive in the process and highlights three different perspectives for action:

The process perspective: It isgettingthefundamentalbuildingblocks(peopleprocesses)rightandensuringtheirrelevanceatalltimes.ThedetailedknowledgeoftheHRprocessesisneededfor commitment for improvement and efficiency.HR professionals need to understand theirobjectivesandrelationshipwithbusinessstrategy.

The event perspective:Thefocusisonprovidingaframeworkforknowledgemanagement.Inotherwords,capturingtheexperienceandinformationandmakingitavailabletoindividual.


Notes


The cultural perspective: Acknowledging that HR has a pivotal role in the changing theorganizationalclimate.

Advantages of HRIS

1. HRIScanreducetheamountofpaperworkandmanualrecordkeeping.

2. Itretrievesinformationquicklyandaccurately.

3. ItallowsquickanalysisofHRissues.

Self Assessment

Fillintheblanks:

23. Job....................isaformalanddetailedexaminationofjobs.

24. Jobresponsibilitiesare....................toperformcertaintasksandduties.

25. Withoutaproper....................ofwhatistobedoneonajob,itisnotpossibletoselecttheright person.

26. Managerscanproperly....................employeesabouttheircareerswhentheyunderstandthe different jobs in the organisation.

27. Arepresentative....................ofjobstobeanalysedisdecidedkeepingthecostandtimeconstraintsinmind.

28. Job....................isajobdesignstrategythatincreasestaskelementsonahorizontallevel.

29. HumanResourcePlanningseekstoplacetheright................intherightjobsattherighttime.

30. HumanResourcePlanning(HRP)isa................lookingfunction.

31. HRplanningisessentialtodeterminethefuture................needsinanorganization.

32. Organisationsoperateina................environment.

33. Whentheorganisationgrowsrapidly,................intonewerareasofoperations.

34. ................ is modified by retirements, terminations, resignations, deaths and leaves ofabsence.

Case Study The Transport Manager

Suresh Goyal had become general manager of Delhi’s Indraprastha TransportCorporation(ITC)onlytenyearsaftergraduationfromcollege.Hehadrisenfromanalyst to assistantmanagerat theVindhyaTransportCompanyat Indorebefore

comingtoDelhiasgeneralmanager.Hewasproudofhisaccomplishments-andofearning`250,000ayearatonlythirty-twoyearsofage.AfteronlyninemonthsonthejobinDelhi,he had been interviewed and had received an offer for the position of executive director attheMahanagarTransitAuthority,Bombay.Thesalarywouldbe`480,000ayear.Theresponsibilitieswouldbeconsiderablylarger.Withlittlehesitation,heinformedtheITCboardthathewouldbeleavingDelhiforBombay.

Contd…


Notes


The ITCboardwasshockedas theChairmanreadSuresh’s letterof resignation. Itwaslessthanayearagothattheyhadendedafour-monthsearchculminatinginthehiringofSuresh.Theideaofagainlookingforageneralmanagerwasadepressingthought.Therearevery fewcompetent transportmanagers in thecountry. ITCfoundand interviewedthreequalifiedcandidateslastyear.Theproblemisagrowingdemandfortransitmanagersandaverysmallsupply.

Sureshcan’tbeblamedformovingon.Hehastolookoutforhiscareerand,rightnow,there’saseller’smarket.Morethan70percentofthosemanagersrunningmajortransportcompanieswillretirewithinsevenyears.Thisisanindustrydominatedbyexecutivesintheirlatefiftiesorearlysixties.Ayoungpersonwithtalentandambition,likeSuresh,canliterallychoosethejobhewants.

Between1980and1990,masstransitsystemsdecayedwhilethecentralgovernmentpouredthousandsofcroresof rupees into the interstatehighwaynetwork.Passengersdeclinedduringthoseyears.Youngpeoplewerenotattractedtothisbusiness.Theindustrylostawholegeneration.Nowitisagrowthperiod.Theresultisadrasticshortageofmanagerialtalent that is underfifty years of age. The ITC chairmanposes the issue: “We’vegot aproblemhere inDelhi.HowdowereplaceSuresh?Howdoweensure thatwe’llhavecontinuityofleadershipinthegeneralmanager’sjob?Thegoodmanagersmovefromcitytocityformoremoneyandbetterpositionsinlargersystems.”

Questions

1. Whatmakessomejobsscarce?

2. HowmightHRMfunctionsreduceturnoverinthegeneralmanager’sjob?

3. Preparealistofsuggestionsthattheboardmightconsidertoprepareitselfagainstanother surprise resignation.

3.8 Summary

JobAnalysisistheprocessofstudyingandcollectinginformationrelatingtotheoperationszz

andresponsibilityofaspecificjob.

Theimmediateproductsofthisanalysisarejobdescriptionandjobspecifications.zz

Jobanalysisisasystematicapproachtodefiningthejobrole,description,requirements,zz

responsibilities,evaluation,etc.

Ithelpsinfindingoutrequiredlevelofeducation,skills,knowledge,training,etc.forthezz

job position.

Theaimofjobenrichmentistomaximizetheinterestandchallengeofworkbyprovidingzz

employeeswithjobshavingtheessentialcharacteristics.

Directobservationisespeciallyusefulinjobsthatconsistprimarilyofobservablephysicalzz

ability,likethejobsofdraftsman,mechanic,spinnerorweaver.

Properlydraftedquestionnairesaresentouttojob-holdersforcompletionandarereturnedzz

to supervisors.

Aworkerorsupervisorchecksitemsonastandardizedtaskinventorythatapplytothezz

job.

Human resource or manpower planning is “the process by which a managementzz

determineshowanorganizationshouldmovefromitscurrentmanpowerpositiontoitsdesiredmanpowerposition.


Notes


Theneedsoftheemployeesarederivedfromthecorporateobjectivesoftheorganization.zz

Oneoftheimportantaspectsofdemandforecastingisforecastingofthequalityofhumanzz

resource (skill, knowledge, values, capabilities etc.), in addition to quantity of humanresources.

SHRMrealizesthatpeoplecanmakeorbreakanorganisationbecausealldecisionsmadezz

regardingfinance,marketing operations or technologies aremadeby an organisation’speople.

HumanResourceManagementSystems(HRMS),HumanResourceInformationSystemszz

(HRIS),Humanresourcetechnology,alsocalledHRmodules,isanintersectionbetweenhumanresourcemanagementandinformationtechnology.

HRmodule is an intersection between human resource management and informationzz

technology. ItmergesHRMasadisciplineand inparticular itsbasicHRactivitiesandprocesseswithinformationtechnologyfield,whereastheplanningandprogrammingofdataprocessingsystemsevolved intostandardizedroutinesandpackagesofEnterpriseResource Planning (ERP) software.

Onthewhole,theseERPsystemshavetheiroriginonsoftwarethatintegratesinformationzz

fromdifferentapplicationsintooneuniversaldatabase.

3.9 Keywords

Checklist: Aworkerorsupervisorchecksitemsonastandardizedtaskinventorythatapplytothejob.Checklistsmaybecustom-madeorpurchasedfromanoutsidevendor.

Econometric Models: It is built up by analysing the past statistical data and by bringing therelationship among variables. These variables include those factors which affect manpowerrequirementdirectlyandindirectlylikeinvestment,production,sales,activities/workloadetc.

Forecasting: Identifying expected future conditions based on information form the past andpresent.

Human Resource Informations System:AcomputerizedsystemthathelpsintheprocessingofHRMinformation.

Human Resource Planning: Theprocessofgettingtherightnumberofqualifiedpeopleintotherightjobattherighttime,sothatanorganisationcanmeetitsobjectives.

Job: Agroupofpositionssimilarintheirsignificantdutiessuchastechnicalassistants,computerprogrammers,etc.

Job Analysis: Itisthesystematicstudyofjobrequirementsandthosefactorsthatinfluencetheperformanceofthosejobrequirements.

Job Enlargement : ItInvolvesExpandingTheNumberofTaskorDutiesAssignedtoagivenJob.ItIsOppositeofWorkSimplification.

Managerial Judgement: Underthismethod,themanagersorsupervisorswhoarewell-acquaintedwiththeworkload,efficiencyandabilityofemployees,thinkabouttheirfutureworkload,futurecapabilitiesofemployeesanddecideonthenumberandtypeofHRtoberequired.

Open-ended Questionnaire: Theopen-endedquestionnaireasksthe job incumbenttodescribetheworkinhisorherownwords.

Ratio Analysis: Thisisthequickestforecastingtechnique.Thetechniqueinvolvesstudyingpastratios,saybetweenthenumberofworkersandsalesintheorganisationandforecastingfutureratios,makingsomeallowanceforchangesintheorganizationoritsmethods.


Notes


Work-study Techniques: Itisusedwhenitispossibletoapplyworkmeasurementtocalculatethelengthofoperationsandtheamountoflabourrequired.


1. Explainthetermjobanalysis.

2. Differentiatebetweenjobenlargementandjobenrichment.

3. Discussthemethodofcollectingjobanalysisinformations.

4. Describe HRP process.

5. ExplainvariousaffectingfactorstoHRPanddiscussitslinkwithstrategicplanning.

6. WritenoteonHRIS.

7. Whatdoyouunderstandbyhumanresourceplanning?

8. Howwouldyoudraw-upaHRplanforanorganisation?

9. Howdoyoudrawupanactionplantothehumanresourceplanforanewlyinstitutedindustry?

10. How is it possible for one employee to have both a position and job, and yet nooccupation?


1. (b) 2. (c)

3. (e) 4. (a)

5. (c) 6. (b)

7. (e) 8. (a)

9. True 10. False

11. False 12. True

13. False 14. True

15. False 16. True

17. False 18. True

19. False 20. True

21. True 22. True

23. analysis 24. Obligations

25. understanding 26. counsel

27. sample 28. enlargement

29. employees 30. forward

31. manpower 32. changing

33. diversifies 34. Demand


Notes




DipakKumarBhattacharyya,Human Resource Management,ExcelBooks.


H.J. Bernardin, Human Resource Management, Tata McGraw Hill, New Delhi,2004.


Madhurima Lall and Sakina Qasim Zaidi,Human Resource Management, Excel Books.


RaoP.S.(2008),Essentials of Human Resource Management and Industrial Relations, Text Cases and Games,HimalayaPublication.

Online links http://en.wikipedia.org/wiki/Job_analysis

www.managementstudyguide.com/job-analysis.htm

http://en.wikipedia.org/wiki/Job_enrichment

http://www.psyasia.com/supportsuite/index.php?_m=knowledgebase&_a=viewarticle&kbarticleid=192#axzz1d0v6tua3

http://en.wikipedia.org/wiki/Job_enlargement

http://www.oppapers.com/essays/Job-Enlargement-Job-Rotation-Job-Enrichment/84361

Unit 4: Recruitment and Selection Process

Notes



CONTENTS

Objectives

Introduction

4.1 ConceptualdetailofRecruitmentandSelection

4.2 Planning and Forecasting

4.3 Effective Recruiting

4.4 Internal and External Sources of Candidates

4.4.1 Internal Sources

4.4.2 External Sources

4.5 RecruitingaDiverseWorkforce

4.6 EmployeeTestingandSelection

4.6.1 Standards for Selection Tests

4.6.2 TypesofInterviews

4.7 Summary

4.8 Keywords



Objectives


Definetherecruitmentandselectionzz

Discuss the planning and forecastingzz

State the relevance of effective recruitingzz

Explain the concept of internal and external sources of candidateszz

Understandrecruitingadiverseworkforce,employeetestingandselectionzz

Introduction

Recruitmentisdefinedas,“processtodiscoverthesourceofmanpowertomeettherequirementofstaffingscheduledandtoemployeffectivemeasuresforattractingthatmanpowerinadequatenumbertofacilitateeffectiveselectionofanefficientworkforce.”

Selection isaprocessofdifferentiatingbetweenapplicants inorder to identify (&hire) thosewithagreaterlikelihoodofsuccessinajob.Itinvolvesstepsleadingtoemploymentofpersonswhopossesstheabilityandqualificationstoperformthe jobswhichhavefallenvacantintheorganization.Itisbasicallyamatchingprocess,thatisfinding“FIT”betweenpersonandjob.

EdwinBFlippodefinedrecruitmentas,”theprocessofsearchingforprospectiveemployeeandstimulatingthemtoapplyforjobsintheorganization.”


Notes


4.1 Conceptual detail of Recruitment and Selection

Therearefoursub-systemsofrecruitment:

1. Findingoutanddevelopingthesourcehererequirednumberandkindofemployeesare/will be available.

2. Developingsuitabletechniquestoattractthedesirablecandidate.

3. Employingthetechniquetoattracttheemployees.

4. Stimulatingasmanycandidateaspossibleandaskingthemtoapplyforjobsirrespectiveof number of candidate required in order to increase the selection ratio (i.e number ofapplicationperonejobvacancy)duetoloweryieldratio.

Letusobservethefactorsaffectingrecruitment.

Internal Factors External Factors

1. Company’spaypackage Socio-economicfactors

2. QualityofWorkLife Supplyanddemandfactors

3. Organisational culture Employmentrate

4. Careerplanning&growth Labourmarketcondition

5. Company’ssize Political,Legal&Govt.factors

6. Company’sproducts/services InformationSystem

7. Company’sgrowthrate

8. Role of trade union

9. Costofrecruitment

10. Company’sname&fame

Table 4.1: Factors Affecting Recruitment

Did u know?Selectionprocessleadstocreationofacontractualrelationbetweenemployerandtheemployee.

Differences between Recruitment and Selection

1. Recruitmentmeanssearchingforsourcesoflabourandstimulatingpeopletoapplyforjob,whereasselectionmeansselectionofrightkindofpeopleforvariousjobs.

2. Recruitmentisapositiveprocesswhereasselectionisanegativeprocess.

3. It creates a large pool of applicants whereas selection leads to screening of unsuitable candidate.

4. Recruitment is a simple process, it involves contracting the various sources of labourwhereasselectionisacomplexandatimeconsumingprocess.Thecandidatehavetoclearanumberofhurdlesbeforetheyareselectedforajob.


Notes


Self Assessment


1. Thebestwayofrecruitingisalways:

(a) walk-ins

(b) advertisements

(c) searchfirms

(d) variable

(e) referrals

2. Themostcommonconstraintsonrecruitingincludeallbut:

(a) imageofafirm

(b) budgetarysupport

(c) interviewing

(d) organisational policies

(e) governmentpolicies

3. Theprimarysourceofinformationforrecruitingis:

(a) managerialinterviews

(b) testing

(c) recruitersthemselves

(d) interviews with applicants

(e) jobanalysis

4. A good source of hiring technical staff would be:

(a) privatesearchfirm

(b) vocational school

(c) employmentexchange

(d) professional association

(e) rivalfirms

5. Anegativeaspectofpromotionfromwithinis:

(a) lowermorale

(b) employeeturnover

(c) career prospects

(d) idea stagnation

(e) employeedissatisfaction

6. Themostreliableandvalidtestsaregenerally:

(a) polygraphtests

(b) attitude tests


Notes


(c) intelligence tests

(d) personalitytests

(e) performancetests

4.2 Planning and Forecasting

HR Planning

TheobjectivesofHRPlanningatmicrolevelaretoensurethattheorganization:

(a) Obtainsandretainsthequantityandqualityofhumanresourcesitneedsattherighttimeandplace;and

(b) Makesoptimalutilisationoftheseresources.

HRPlanningconstitutesanintegralpartofcorporateplanandservestheorganizationalpurposesinmorewaysthanone.Forexample,ithelpsorganisationsto(i)capitalizeonthestrengthsofitshumanresources(ii)determinerecruitmentlevels(iii)anticipateredundancies(iv)determineoptimumtraininglevels(v)serveasabasisformanagementdevelopmentprogrammes(vi)costofmanpowerinnewprojects(vii)assistproductivitybargaining(viii)assessfuturerequirements(ix)studythecostofoverheadsandvalueofservicefunctionsand(x)decidewhethercertainactivities need to be subcontracted.

Forecasting

Humanresourceforecastsareattemptstopredictanorganisation’sfuturedemandforemployees.Forecastingtechniquesrangefromtheinformaltothesophisticated.Eventhemostsophisticatedmethodsarenotperfectlyaccurate;instead,theyarebestviewedasapproximations.EachoftheforecastingmethodsshowninTable4.2isexplainedhereunder.

Expert Trend Other

Informalandinstantdecisionszz Extrapolationzz Budgetandplanninganalysiszz

Formalexpertsurveyzz Indexationzz New-ventureanalysiszz

Nominalgrouptechniquezz Statisticalanalysiszz Computermodelszz

Delphitechniquezz

Table 4.2: Forecasting Techniques

(a) Expert Forecasts: Expert forecasts are based on the judgements of those who areknowledgeable of future human resource needs. In larger organisations, the simplestmethod is to survey linemanagers,who are the ultimate experts about future staffingneedsoftheirdepartments.

Delphi technique solicits estimates from a group of experts, usually managers. HRdepartmentplannersactasanintermediary,summarizethevariousresponsesandreportthefindingsbacktotheexperts.Theexpertsaresurveyedagainaftertheygetthisfeedback.Summariesandsurveysarerepeateduntiltheexperts’opinionsbegintoagreeonfuturedevelopments.

(b) Trend Projection Forecasts: Perhapsthequickestforecastingtechniqueistoprojectpasttrends.Thetwosimplestmethodsareextrapolationandindexation.Extrapolationinvolvesextendingpastratesofchangeintothefuture.Forexample,ifanaverageof20production


Notes


workerswerehiredeachmonthforthepasttwoyears,extrapolatingthattrendintothefuturemeans240productionworkerswillbeaddedduringtheupcomingyear.

Indexationisamethodofestimatingfutureemploymentneedsbymatchingemploymentgrowthwith some index. A common example is the ratio of production employees tosales.Forexample,plannersmaydiscoverthatforeachmillion-rupeeincreaseinsales,theproductiondepartmentrequiresfivenewassemblers.

These methods are very inaccurate for long-range human resource projections. Moresophisticatedstatisticalanalysesmakeallowancesforchangesintheunderlyingcausesofdemand.

(c) Other Forecasting Methods: Thereareseveralotherwaysbywhichplannerscanestimatethefuturedemandforhumanresources.Oneapproachisthroughbudgetandplanninganalysis.Whennewventures complicate employmentplanning,planners canusenew-venture analysis. New-venture analysis requires planners to estimate human resourceneedsbycomparisonwithfirmsthatalreadyperformsimilaroperations.

Computer Modeling:Themostsophisticatedforecastingapproachesinvolvecomputers.Computermodelsareaseriesofmathematicalformulaethatsimultaneouslyuseextrapolation,indexation,surveyresultsandestimatesofwork-forcechangestocomputefuturehumanresourceneeds.

4.3 Effective Recruiting

Effectiverecruitingisthatwhichhasanidealandefficientrecruitingpolicy.Letusunderstandwhatisrecruitingpolicymean?

Recruitment Policy

Itisderivedfromthecompany’spersonnelpolicyofthesameorganisation.

Followingfactorsshouldbeconsideredinformulatingrecruitmentpolicy:

1. Governmentpolicies

2. Personnelpoliciesofothercompetingorganisation

3. Organisation’spersonnelpolicies

4. Recruitmentsources

5. Recruitmentneeds

6. Recruitmentcosts

7. Selectioncriteria&preferences.

8. Itshouldhighlightthenecessityofestablishingjobanalysis.

Prerequisites of a Good Recruitment Policy

1. Itshouldbeinconformitywithitsgeneralpersonnelpolicies.

2. Itshouldbeflexibleenoughtomeetthechangingneedsofanorganization.

3. Itshouldbesodesignedas toensureemploymentopportunities for itsemployeesonalong-termbasissothatthegoalsoftheorganizationshouldbeachievable;anditshoulddevelopthepotentialitiesofemployees.

4. Itshouldmatchthequalitiesofemployeeswiththerequirementsoftheworkforwhichtheyareemployed.


Notes


Self Assessment


7. Therecruitingprocessbeginswithhumanresourceplanningandconcludeswithevaluationof recruiting efforts.

8. Recruitmentisamerevacancy-fillingfunction.

9. Employmentexchangesareimportantsourcesofclericalandmanagerialpersonnel.

10. If a job opening to be filled is very attractive, most prospective candidates may turnindifferentanddonotevenapply.

11. Inpractice,recruitmentmethodsseemtovaryaccordingtojoblevelandskill.

12. Thebasicpurposeofrecruitingistodevelopagroupofpotentiallyqualifiedpeople.

13. Governmentpoliticsoftencomeinthewayofrecruitingpeople.

14. Modernemployeeslookforasatisfyingcareerinplaceof‘justajob’.

15. A search firm is a government agency that maintains a computerised list of qualifiedapplicants.

16. Hiringcostscouldgoupsubstantiallywhenafirmhirescandidatesfromwithin.

17. Reliabilityistheaccuracyofatestinpredictingperformance.

18. Interviewsareoneofthemostreliableselectiondevices.

19. Testingisusedmostfrequentlyforlowerlevelemployees.

20. Themostreliabletypeofinterviewisstructured.

21. Questionsthatelicityesornoanswersprovidetheinterviewerwithmoreclarity.

22. Ultimately,selectiondecisionsarebasedonjobperformanceissues.

4.4 Internal and External Sources of Candidates

Firstconsiderationshouldbegivetotheinternalcandidates,wheretherearenosuitablecandidatesavailablewithin theorganization, thenexternal sourcesof recruitment shouldbe considered.Sourceof recruitment tellsus, “Where are suitable candidates available in requirednumber?Techniquestellus-“Howtheycanbeinformedabouttheavailabilityofjobandorganization”.

Sourcesofrecruitmentinclude:

4.4.1 Internal Sources

Theseincludepersonnelalreadyonthepayrollofanorganization,thatis,itspresentworkingforce. Whenever any vacancy occurs, somebody from within the organization is upgraded,transferred,promotedorsometimesdemoted.

1. Present Permanent Employees: Organisation consider the candidate from this sourcetohigherlevelduetofirstlyavailabilityofmostsuitablecandidatefor jobsrelativelyorequallytotheexternalsources,secondly,tomeetthetradeuniondemands,thirdlytothepolicyoforganisationtomotivatethepresentemployees.

2. Present Temporary or Causal Employees: Organisationusethissourcetofillpositionoflower level.


Notes


3. Retrenched or Retired employees:DependentofDeceased,Disabled,retiredandPresentEmployee.

Merit

1. Itimprovesthemoraleofemployees,fortheyareassuredofthefactthattheywouldbepreferred over outsiders when vacancies occur.

2. Theemployer is inabetterposition toevaluate thosepresentlyemployed thanoutsidecandidates.

3. Itpromotes loyaltyamong theemployees, for itgives thema senseof job securityandopportunitiesforadvancement.

4. Theyaretriedpeopleandcanbereliedupon.

5. Itislesscostlythangoingoutsidetorecruit.

Demerits

1. Itoftenleadstoinbreedinganddiscouragesnewbloodfromenteringanorganization.

2. Therearepossibilitiesthatinternalsourcesmay“dryup”,anditmaybedifficulttofindtherequisitepersonnelfromwithinanorganization.

3. Aspromotion isbasedonseniority, thedanger is thatreallycapablehandsmaynotbechosen.

4.4.2 External Sources

Externalsourcesincludessourceoutsidetheorganization.

Theyusuallyinclude:

1. Newentrantstothelabourforcei.e.youngmostlyinexperiencedpotentialemployees–thecollege students.

2. Theunemployed–withawiderangeofskillsandabilities.

3. Retiredexperiencedpersonssuchasmechanics,machinists,welders,accountants.

4. Others not in the labour force, such as married women and persons from minoritygroups.

Other sources include:

1. CampusRecruitment

2. PrivateEmploymentAgencies/Consultant

3. PublicEmploymentExchanges

4. Professional Associations

5. DataBanks

6. Casual Applicants

7. SimilarOrganisations

8. TradeUnions


Notes


Task Prepare the advertising copy for recruitment of executive trainees for a foreignbankwithmulti-locationestablishments.

4.5 Recruiting a Diverse Workforce

Businesses have started to recognize diversity in the workplace as a business strategy thatmaximizesproductivity,creativityand loyaltyofemployeeswhilemeeting theneedsof theirclientsorcustomers.Ifacompanyisonlyasgoodastheiremployees,thenitstandstoreasonthatagreatdealofenergyshouldbedevotedtohiringthemosttalentedindividuals.Bybranchingouttoadiverseworkforce,employershaveaccesstoagreaterpoolofcandidatestherebyimprovingtheoddsofhiringthebestperson.Inacompetitivemarketplace,anorganizationthatputspeoplefirst–regardlessoftheirrace,religion,gender,age,sexualpreference,orphysicaldisabilityhasanadvantageovertheotherplayers.

The attitudes and expectations of diverse employees–whether defined by ethnicity, age orgender–clearlyreflecttheirexperiencesandaspirations.Knowingwhatcompelspeopletojoin,stayor leaveanorganizationprovides thebasis fordevelopingmoreeffective recruitingandretentionstrategies.The resultingstrongand inclusiveworkingenvironmentswillultimatelyleadtoincreasedcompanymorale,higherproductivityandareductioninturnoverrates.

Workforce Diversity is the diverse workforce working in an organisation having differentlanguage,culture,valuesystemandattitude.

Minoritiesareanincreasinglylargeandimportantpartoftheworkforceasthenation’spopulationbecomesmoreethnicallyand raciallydiverse.Buildingadiverseworkforce is a strategy thatmakesgoodbusinesssense.

Tobeasuccessfulbusinessintoday’scultureyouneedtocreateanenvironmentof inclusionwherepeoplefeelvaluedandintegratedintoacompany’smission,visionandbusinessstrategyatall levels.Whenemployees’ skillsandknowledgeare recognized,appreciatedandutilizedtheyaremoreengagedincontributingtoanorganizations’success.Theyaremorewillingtogothe‘extramile’andshareideasandinnovation.Thevisibleandinvisibledimensionsofdiversitythattheybringareusedasresourcesforsuccessandgrowth.Inordertocreateaninclusiveworkenvironmentyouneedadiverseworkforce.

Diversityisnotjusta“goodidea”,today.Itisabusinessimperativeifyouwanttostaycompetitive,innovativeandsecurealargermarketshare.Executivesleadersareaskingthequestion“Howdowerecruit,engage,andretainthatdiverseworkforce.”Inordertoanswerthatquestion,weneedtoidentifycommondiversitymistakes.

!Caution Intoday’scompetitivemarketoneneedtobecreative.Onehastogowherethecandidatesareandhavealongenoughlead-timetogetagoodselectionofcandidates.

Recruitmentandretentionofvaluableemployeesisnowrecognizedasoneofthemostimportantissue.Bycreatinganenvironmentwhereallemployeesfeel included,representedandvaluedhelpstoproducegreateremployeecommitmentandmotivation.Italsomeansfewerresourcesspentontrainingandturnover.Byrecognizingemployee’suniquenessandappreciatingtheirvariedperspectiveshelpsensureaninclusiveworkenvironmentwhereawarenessof,andrespectfor,differentculturesispromoted.


Notes


Notes Common Mistakes in Diversity Recruitment

Organizationsmaketwocommonmistakesthatcausethemtofallbehindtheircompetitionandevenlosemarketshare.

1. Company photo diversity: Theorganizationonlyconsidersthevisibledimensionsofdiversityprimarilyrace,andgender.Thecompanyphotolooksgoodbuteveryonethinksthesame.Differencesthatincludesexualorientation,geographicbackground,thinkingandcommunicationstyle,work function,abilityanddisability, religion,andwork style are not valued and are even discouraged. This is a very narrowdefinitionofdiversityandoffers littleornovaluetotheorganizationintermsofnewideas,creativityandinnovation.

2. Diversity by Numbers: Againdiversityisdefinedbywhatyoucansee.Demographicsreflect theoutsidecommunitybut it isonlyat the lower levels. (Production,andunskilledlabor).Thereis littleornodiversityasyoumoveupintomanagement.Whenquestionedaboutdiversityintheirorganization,theypointtoallthenumbers.Every year they have good “numbers”, but the people are constantly changing.Employees leaveandget jobswherethere isavalueofdiversityatall levelsandtheyareencouragedtomoveupintheranks.

Steps to Recruit Diverse Workforce

There are several steps that organizations can and should take to promote a diverse workenvironment:

1. Creating a diversity policy: Policy should set formal goals and strategiespertaining tocreating an equal opportunity environment.Once policy is in place it should bemadepublicbothinternallyandexternally.

2. Writing job descriptions: Your jobdescriptionshouldclearlybewritten forall typesofapplicantsandshouldinnowaydiscriminate.

3. Publicizing job openings:Lookbeyondobviousrecruitmentmethodsandvenuesforgoodpeople.Therearemanysitesonlinethathelpfacilitateequalopportunityemployment.

4. Awareness towards current legislation: Staying current on the latest discriminationlegislation will help to avoid potential litigation.

Itrequireseducation,sensitivityandawarenessofhowindividualsfromdifferentcultureshandlecommunication,businessetiquette,andrelatetomanagement.Promotingworkforcediversityrequires HR recruitment of competent and qualified employees and the accommodation ofindividualneedswithinthecontextoftheworkteamandtheorganization.

Benefits

1. Irrespectiveofchallengesfaced,diversitymaycreatethebenefitsfaroutweighthecosts.

2. Diversityallowsforflexibilitywithinanorganization.

3. Strengtheningtheabilitytorespondtochangingenvironmentsanddemandswhicharecriticaltoensuringthatanorganizationstayscompetitiveintheglobaleconomy.


Notes


New Approach to Recruitment: E-recruitment

TheWebisacosteffectivewaytopublicizeopenings inafirm.“Itgeneratesmoreresponsesquickerand fora longer timeat less cost, than justaboutanyothermethod” (Dessler).Mostprospective job seekers go online to look for jobs anywhere in any part of the country. Thecompany could place information regarding openings on its ownwebsite or place an ad onother sites likeMonster.com,Naukri.com; timesjobs,comor jobstreet.com.Manyprofessionalorganisations—liketheSocietyforHRM,theAmericanSocietyforTrainingandDevelopment—have employment sections in theirwebsites offering help to prospective job seekers. Privateemployment agencies specializing in specific sectors such as IT, Retail, Insurance have alsocroppedupofferingsector-specificopeningsforcandidates.Resumescannersarebeingusedtofilteronlineapplicationssentthroughthecompany’sownwebsitethesedays.Bypredefiningthe requirements, the scanner can filter out those resumes, which do not meet the criteria.ManycompanieshaveOnlineSkillAssessmentSolutionspositionedtosavetimeinscreeningapplicationsfromITprofessionalsandshortlistingthosewhomeettherequirementsofthejobsthatrequirespecializedskills.

ApplicantTrackingSystems(ATS)havealsobeenusedextensivelybyemployersallover theworldnowtoattract,gather,screen,compileandmanagethousandsofapplicationsforwardedbyjobseekers.AwellknownATSisrecruitsoff.comwhichcollectsapplicationsfromjobseekers,evaluatesandrankstheapplicantsandfinallymatchesthequalifiedwithspecificjobopenings—like any other placement agency.Many online recruitment companies are using testing andassessmentontheinternettotargetsocalledpassiveapplicants,whohaveputtheirCVsandresumesonline,butarenotactivelylookingforajob.Themarkettodayisfloodedwithsolutionsfore-recruitmentmakingindifficulttodecideandchoosethebestsuitableoption.Theemployersarebasicallylookingforsolutionproviderswhooffer:

1. Onlinetestdeliverywithminimalmanualefforts.

2. HighqualityassessmentcontentforvariousITtechnologies.

3. Timesimulatedtestingenvironment.

4. Comprehensiveorganizationwidereports.

5. Deliverquestionsindifferentordertoeachcandidatebycreatingrandomizedtests.

6. Option toconducton-premise tests in thecontrolledenvironmentandoff-premise testsovertheInternetforremotelylocatedcandidates.

Assomeonerightlypointedout“Recruitment isnothiring thebestamongthoseknockingatyourdoor;ratherit’saquesttoenrolltherightcandidateinyourhumancapital,transcendingallbarrierswiththehelpoflatesttechnology.”

Self Assessment

Fillintheblanks:

23. ................istheprocessofpickingindividualswhohaverelevantqualificationstofilljobsin an organisation.

24. Testsareusefulselectiondevisesinthatthey..............qualificationsandtalentsthatcan’tbe detected otherwise.

25. .............. test records fluctuations in respiration, blood pressure and perspiration on amovingrollofgraphpaper.


Notes


26. Onevariationofthe................interviewisknownasthesituationalinterview.

27. Inthe..............interview,therecruiterusesapredeterminedsetofquestionsthatareclearlyjob related.

28. Theinterviewisagood..............toolinthehandsofthepersonwhoknowshowtouseit.

4.6 Employee Testing and Selection

EmploymentTestareusedtogetinformationaboutthecandidate,whicharenotavailablefromapplicationblankorinterview.Theyhelpinmatchingthecharacteristicsofindividualswiththevacantjobsoastoemployrighttypeofpersonnel.

Followingtypesoftestsareused:

1. Intelligence tests

2. Achievementstests

3. Aptitude tests

4. Personalitytests

5. Assessmentcentre

6. Graphologytests

7. Polygraphtests

8. Integritytests

Intelligence tests:Itisamentalabilitytest.Theymeasurelearningability,abilitytounderstandinstructionsandmake judgment.Theymeasureseveralabilitiessuchasmemory,vocabulary,verbalfluency,numericalability,perception.Such testsareused incompetitiveexaminationsatentrylevelmanagementpositionsinBanking,InsuranceandotherFinancialServicesectors.TheyincludetestslikeStanford-Binet,Binet-Simon,etc.

Achievement tests:These testsaredesigned tomeasurewhat theapplicantcandoon the jobcurrently. For example, typing test shows typingproficiency, a short hand testmeasures thepersons ability to take dictation. They are also known as work sampling tests, wherein jobapplicant’sabilitytodosmallportionofthejobistested.Theyinvolve.

1. Motor-involvingphysicalmanipulationofthings

2. Verbal

Aptitude tests: Thesemeasureanindividual’spotentialtolearncertainskills-clerical,mechanical,mathematical.Thesetestsindicatewhetheranindividualhasabilitytolearnagivenjobquicklyandefficiently.

Personality tests: Thesemeasureanindividual’spersonalityfactorsandrelationshipbetweenpersonality factorsandactual jobcriteria.Thepersonalityaspectswhichareevaluatedareasfollows: motivation, emotional balance, self-confidence, interpersonal behaviour. Some ofthe tests are: Minnesota Multiphase Personality Inventory (MMPI), California PsychologicalInventory,ManifestAnxietyScale.

Itincludessuchstatements:

IamaspecialagentofGod True False

Iamfascinatedbyfire True False

Ibelieve,Iambeingfollowed True False

Iday-dreamverylittle True False


Notes


TherearethreetypesofPIPTests(ProjectiveInterestPreference)

1. Projective Test:Theyexpectcandidatetointerpretproblemsorsituationbasedontheirownmotives, attitudes and values. Thematic Appreciation Test is one of such a kind,where a picture is shown to the candidate.

2. Interest Tests: Peoplearemostlikelytobesuccessfulinjobstheylike.Comparetheinterestofcandidatewiththeinterestofsuccessfulpeopleinaspecificjob.

3. Preference Tests:Thesetestshowshowpeopledifferintheirpreferencesforachievement,meaningfulness,discretionetcintheirjobs.

Assessment centre:Itisanextendedworksample.Itusesgroupsandindividualexercise.Abatchofapplicantsisassessedbyteamof6to8trainedassessors.

Techniques:

1. Inbaskets–isanaccumulationofreports,memosandletters.

2. GroupDiscussions–tojudgeinterpersonalskills,acceptancebythegroup,leadershipandindividualinfluence.

3. Businessgames

4. Individual Presentation.

5. Structured Interview.

Graphology tests:Analysisoflines,loops,hooks,strokes,curvesinaperson’shandwritingtoassesstheperson’spersonalityandemotionalmakeup.

Polygraph tests:Alsoknownasliedictiontest,recordsphysicalchangesinbodysuchrespiration,bloodpressureandperspirationonamovingrollofpaperwhileansweringseriesofquestions.Suitableforgovernmentagenciesforfillingsecurity,police,fireandhealthpositions.

Issues:Isitpossibletoprovethattheresponsesrecordedbythepolygraphoccuronlybecausealiehasbeentold?Whataboutthosesituationsinwhichpersonlieswithoutguilt(pathologicalliar) or lies believing the response to be true.

Integrity tests:Tomeasureemployee’shonestytopredictthosewhoaremorelikelytostealfromanemployer.Suchquestionsaregenerallyasked:

Doyoucarryofficestationerybacktoyourhomeforoccasionaluse?zz

Doyoumarkattendanceforyourcolleaguesalso?zz

Haveyouevertoldalie?zz

4.6.1 Standards for Selection Tests

1. Reliability: Testscoresshouldnotvarywidelyunderrepeatedconditions.

(a) Test-retest reliability: techniques giving same results when repeated on the sameperson.

(b) Inner-rater reliability:givingsameresults,whenusedby2ormoredifferentrates.

(c) Intra rater reliability: techniquewhichgivesthesameresults,whenrepeatedlyusedbythesameratertoratethesamebehaviourorattitudesatdifferenttimes.


Notes


2. Validity: is the extent to which an instrument measures what it intends to measure.Exampletypingspeed.

(a) Content validity: is the degree to which the content of the test represent the actual worksituation.Example,Typingtesthashighcontentvalidityfortypist.

(b) Construct validity: is the degree towhich specific trait is related to successful jobperformance.Example-Honestywouldbeimportantforbankcashier.

3. Qualifiedpeople

4. Preparation

5. Suitability

4.6.2 Types of Interviews

Severaltypesofinterviewsarecommonlyuseddependingonthenatureandimportanceofthepositiontobefilledwithinanorganisation.

1. The non-directive interview: Inanon-directiveinterviewtherecruiterasksquestionsastheycometomind.Thereisnospecificformattobefollowed.Thequestionscantakeanydirection.Theinterviewerasksbroad,open-endedquestionssuchas‘tellmemoreaboutwhatyoudidonyourlastjob’–andallowstheapplicanttotalkfreelywithaminimumofinterruption.Difficultieswithanon-directiveinterviewincludekeepingitjobrelatedandobtainingcomparabledataonvariousapplicants.

2. The directive or structured interview: In the directive interview, the recruiter uses apredeterminedsetofquestionsthatareclearlyjobrelated.Sinceeveryapplicantisaskedthesamebasicquestions,comparisonamongapplicantscanbemademoreeasily.Structuredquestionsimprovethereliabilityoftheinterviewprocess,eliminatebiasesanderrorsandmayevenenhancetheabilityofacompanytowithstandlegalchallenge.Onthenegativeside,thewholeprocessissomewhatmechanical,restrictsthefreedomofinterviewersandmayevenconveydisinteresttoapplicantswhoareusedtomoreflexibleinterviews.Also,designingastructuredinterviewmaytakeagoodamountoftimeandenergy.

3. The situational interview: One variation of the structured interview is known as thesituational interview. In this approach, the applicant is confrontedwith a hypotheticalincidentandaskedhowheorshewouldrespondtoit.Theapplicant’sresponseisthenevaluatedrelativetopre-establishedbenchmarkstandards.

4. The behavioural interview: Thebehavioural interviewfocusesonactualwork incidents(asagainsthypotheticalsituationsinthesituationalinterview)intheapplicant’spast.Theapplicantissupposedtorevealwhatheorshedidinagivensituation,forexample,howhedisciplinedanemployeewhowassmokinginsidethefactorypremises.

5. Stress interview: Instressinterview,theinterviewerattemptstofindhowapplicantswouldrespondtoaggressive,embarrassing,rudeandinsultingquestions.Thewholeexerciseismeanttoseewhethertheapplicantcancopewithhighlystress-producing,anxiousanddemandingsituationswhileatwork,inacalmandcomposedmanner.Suchanapproachmay backfire also, because the typical applicant is already somewhat anxious in anyinterview.So,theapplicantthatthefirmwantstohiremighteventurndownthejobofferundersuchtryingconditions.

6. Panel interview: In a typical panel interview, the applicant meets with three to fiveinterviewerswhotaketurnsaskingquestions.Aftertheinterview,theinterviewerspooltheirobservationstoarriveataconsensusaboutthesuitabilityoftheapplicant.Thepanelmemberscanasknewandincisivequestionsbasedontheirexpertiseandexperienceandelicitdeeperandmoremeaningful responses fromcandidates.Suchan interviewcould


Notes


alsolimittheimpactofthepersonalbiasesofanyindividualinterviewer.Onthenegativeside,asanapplicant,apanelinterviewmaymakeyoufeelmorestressedthanusual.

Self Assessment


29. Themostreliabletypeofinterviewis:

(a) behavioural

(b) stress

(c) structured

(d) situational

(e) panel

Case Study Ethics in Head Hunting

Sunrise steel works (SSW) is a rerolling mill situated near Jamshedpur which bymeltingironconvertsitintoblooms,rodsandwires.Sincetheconstructionindustryin the country is booming, there is gooddemand for usable steel products. SSW,

withitsrerollingtechnique,ItisabletocompetewellwithmajorsteelplantslikeSAILandTISCO.

SSWhasdecided toexpand theplantat Jamshedpurandacquirednecessaryplantandequipment. Itwas looking foranexperiencedmetallurgicalengineerwithblast furnaceexperienceinmajorsteelplantstoheaditsoperations.

SSWhasrequisitionedtheservicesofaHeadHunterFirm(HHF)tofocusonVizagSteelPlanttopoachacoupleofitsexperiencedmetallurgicalengineers.SSWgaveanindicationthatitwouldpayaminimumoffiftypercentmorethanwhatthecandidatewaspresentlydrawing,whichcouldgouptoonehundredpercentfordeservingcandidate.NormallyIndiansarehome-sickandwouldliketohaveajobnearertotheirhomesoratleastinthesamestatetheycomefrom.Cashinginonthisattitude,SSWwantedcandidatesbelongingtoBiharorWestBengalwhocouldgetattractedtoajobnearerhome.HHFdemandedthatSSWshouldpayonemonth’ssalaryasservicechargesifacandidateisselectedandjoinedservice.Ifnocandidatejoined,thenSSWshouldmeetHHF’sadministrativeexpensesonactual cost.

HHF started its hunting and finally located six engineers of Vizag Steel Plant whoapproximatedSSW’srequirement.HHFsentbriefresumesofthesesixcandidatestoSSWwhoseCMDshortlistedthree‘targets’andaskedHHFtofocusonthem.HHFcontactedthose three candidates over phone and stated that an attractive job as Head of operations waswaiting and if they are interested they should come for preliminary briefing at adesignatedlocalstar-hotel.Eachcandidatemettheheadhunterseparatelyandobtainedfullbriefingaboutthejobdescriptionandorganisationprofile.Onecandidate,afterstudyingtheprofileof theCompany,didnot show interest.Another candidate,Mukharjee,wasinterestedonly if the jobwas offered at its 24-Paraganaplant.After verifyingwith theprincipals,thecandidatewaspromisedpostinginWestBengalafteroneyear’sserviceatJamshedpurplant.Butthisdidnotsatisfythecandidateandhe,too,droppedout.

Contd…


Notes


Thethirdcandidate,MKDubey,wasinterestedandstartedbargainingforbetterterms.Aftertworoundsofdiscussions,theheadhunterarrangedameetingbetweentheDeputyManagingDirectorofSSWandDubeyatastarhotelinVizag.Afterprotractednegotiations,ahighsalarywasfixed.Perkslikefurnishedhousing,companycarandmedicalfacilitieswereoffered.Interest-freevehicleloanwaspromisedforpurchaseofacarafteroneyearofservice.Thejobwasona3-yearcontractwhichcouldbeextended.DubeywassatisfiedwiththetermsbutsaidthathewouldliketovisitJamshedpurplantandthathewouldrequirethreemonth’stimetogivenoticetohispresentemployer.SSWarrangedreturnrailtickettovisittheplantandofferedtoreimbursethreemonth’snoticepayifthecandidatedecidedtojoinserviceearlyatJamshedpur.

Dubeyvisitedtheplantbutwassilentforoverafortnight.SSWwaseagertoknowwhenDubeywould join service.Dubey finally broke the news; hewas not interested in theoffer,whichwasconveyedtoSSW.Thereasonsforturningdownthelucrativeofferweresurprising.Dubeyreasonedthat(a)thoughhewasfromBihar,thelawandordersituationwasnotgoodinthestateandhehadapeacefullifeatVizag(b)theSSWfactorywaslocatedsome35kmfromJamshedpur(c)therewasnohousingfacilityatplantsite(d)abovealltherewasnosuretyof jobsecurity(e)hewashappyatVizagSteelPlantwherehewasprovidedwithaccommodation,schoolwasverynear,goodplaygrounds,recreationcentre,goodmedicalfacilities,therewasnoparochialismorfavouritismintheorganisationandmerithadapremium.Costoflivingwascomparativelycheap.OnthewholethequalityoflifewasgoodatVizagSteel.Thiswouldamplyoffsetthelucrativesalaryincrease.

Questions

1. WasitethicalforSSWtopoachanotherorganisationthroughheadhuntersjusttogetitsrequiredhumanresource?

2. WastheapprehensionofjobinsecurityofDubeyright?WhatstepsshouldSSWtaketoattractdesiredcandidates?

3. IfDubeygoesalongwithSSW’sinflatedsalaryfiguresandheishired,whatpossibleproblemscouldheface?

4.7 Summary

Recruitmentisthezz processoffindingandattractingcapableapplicantsforemployment.

Selection iszz theprocessofmatching thequalificationsof applicantswith jobneedsandchoosingthemostsuitableon.

Themostsophisticatedforecastingapproachesinvolvecomputers.zz

Computer models are a series of mathematical formulae that simultaneously usezz

extrapolation,indexation,surveyresultsandestimatesofwork-forcechangestocomputefuturehumanresourceneeds.

Employmenttestsareusedtogetinformationaboutthecandidate,whicharenotavailablezz

fromapplicationblankorinterview.Theyhelpinmatchingthecharacteristicsofindividualswiththevacantjobsoastoemployrighttypeofpersonnel.

Followingtypesoftestsareused:zz

Intelligence testsz�

Achievementstestsz�

Aptitude testsz�

Personalitytestsz�


Notes


Assessmentcentrez�

Graphologytestsz�

Polygraphtestsz�

Integritytestsz�

Assessmentcentreisanextendedworksample.Itusesgroupsandindividualexercise.Azz

batchofapplicantsisassessedbyteamof6to8trainedassessors.

Validityistheextenttowhichaninstrumentmeasureswhatitintendstomeasure.Examplezz

typingspeed.

4.8 Keywords

Achievement Tests: These are designed to measure what the applicant can do on the jobcurrently.

Aptitude Test: Aptitude test measures an individual’s potential to learn certain skills-clerical,mechanical,mathematical.Thesetestsindicatewhetheranindividualhasabilitytolearnagivenjobquicklyandefficiently.

Human Resource Forecasts:Humanresourceforecastsareattemptstopredictanorganisation’sfuturedemandforemployees.

Intelligence Test:Itisamentalabilityteststhatmeasurelearningability,abilitytounderstandinstructionsandmakejudgment.

Interest Tests: Peoplearemostlikelytobesuccessfulinjobstheylike.Comparetheinterestofcandidatewiththeinterestofsuccessfulpeopleinaspecificjob.

Personality Test: Personalitytestsmeasureanindividual’spersonalityfactorsandrelationshipbetweenpersonalityfactorsandactualjobcriteria.

Preference Tests: These test shows how people differ in their preferences for achievement,meaningfulness,discretionetcintheirjobs.

Projective Test:Theyexpect candidate to interpretproblemsor situationbasedon theirownmotives,attitudesandvalues.ThematicAppreciationTestisoneofsuchakind,whereapictureis shown to the candidate.

Recruitment: Theprocessoffindingandattractingcapableapplicantsforemployment.

Selection: Theprocessofmatchingthequalificationsofapplicantswithjobneedsandchoosingthemostsuitable.


1. Examinevarioussourcesofrecruitment.

2. Howcananorganizationevaluatetheworthofthesesources?

3. Forrecruitingdiverseworkforce,whatcriteriadoyousuggesttoadopt?

4. Whatisitsroleandimportanceinselectingmanagementtraineesinalargepublicsectorundertaking?

5. What background information should a recruiter know before beginning to recruit jobseekers?


Notes


6. Givethreeexamplesofhoworganisationalpoliciesaffecttherecruitmentprocess.Explainhowtheseinfluencearecruiter’sactions.

7. Examinetheexternalsourcesofrecruitment.

8. Examinevariousinternalsourcesofrecruitment.

9. Whatspecificconstraintsmaypreventamanagerfromhiringthebestcandidate?

10. Whatrecruitingsourcegetsthemostacceptablecandidates?

11. Why would a company pay a private employment agency to recruit candidates for apositionwhenapublicemploymentexchangeprovidesitsservicesforfree?

12. Whatarethemostpopularrecruitingsourcesforunskilledjobsandalsoformanagerialjobs?


1. (d) 2. (c)

3. (e) 4. (b)

5. (d) 6. (e)

7. True 8. False

9. False 10. False

11. True 12. True

13. True 14. True

15. False 16. False

17. False 18. True

19. True 20. True

21. False 22. True

23. Selection 24. uncover

25. Polygraph 26. structured

27. directive 28. selection

29. structured








Notes





Online links http://nptel.iitm.ac.in/courses/IIT-MADRAS/Management_Science_I/slides/4_2s.pdf

h t tp ://www.co lga t e . co . i n/app/Co lga t e/ IN/Corp/Caree r s/RecruitmentProcess.cvsp

http://en.wikipedia.org/wiki/Human_resources

http://www.peoservicescompany.com/peo/recruitment-selection-services.html

Unit 5: Induction and Placement

Notes



CONTENTS

Objectives

Introduction

5.1 Induction

5.1.1 Objectives

5.1.2 InductionProgramme:Steps

5.2 Placement

5.3 The Challenges

5.4 Summary

5.5 Keywords



Objectives


Definetheterminductionzz

Explainthemeaningofplacementzz

Explainthechallengestowardsinductionandplacementzz

Introduction

Inductionororientationmaybedefinedasaprocessofguidingandcounsellingtheemployeetofamiliarisehimorherwiththeorganisationandthejobsituation.Thisexertsamarkedinfluenceon the job tenure and effectiveness. The induction process accomplishes several objectivesincludingformationofafavourableimpressionoftheorganisation,attitudedevelopment,thefeelingofbelonging, facilitationof learningand teamworkwithother employees. It reducesemployee grievances, frustration and turnover as also helps in the attainment of numeroustraining objectives.

Asregardsthecontentsoftheinductionprogramme,itembracesawiderangeofitemsusuallyembodiedintheemployeehandbookormanual.Thecontentsoftheinductionprogrammeshouldbedeterminedintheformofchecklistspecifyingthetopicstobecovered.Attemptsshouldbemadetofollow-upandassesstheprogrammebyinterviewingthenewemployeesasameasuretocorrectthegapsintheknowledgeandattitudeoftheemployees.

Thus,inductionisalineresponsibilitysupportedwithstaffadviceandguidance.TheSupervisor,foremanormanagershouldbetrainedintheinductionprocess,andcarehastobetakenthatheor shedoes not entirely delegate this crucial responsibility to fellowworkers. ThePersonnelDepartmentshouldbemaderesponsiblefortrainingthemanagers,supervisors,orforemeninthisrespect,andevaluatingtheprogrammeperiodically.Severalinductionmethodscanbeuseddependingupontheneedsoftheorganisation.Itmay,howeverbenotedthatspecificmethodsareeffectiveforspecificcategoryofemployeeswhichshouldbedeterminedthroughintensive


Notes


researchprogrammes. Severalmethodsof training canbe effectively employed for inductingnewemployees.

5.1 Induction

Onceanemployeeisselectedandplacedonanappropriatejob,theprocessoffamiliarizinghimwiththejobandtheorganizationisknownasinduction.Inductionistheprocessofreceivingandwelcominganemployeewhenhefirstjoinsthecompanyandgivinghimbasicinformationheneedstosettledownquicklyandhappilyandstarswork.

Did u know?Theinductionprogrammeclarifiesthetermsandconditionsofemployment,communicates specific job requirements to the employees and provides confidence inthe company aswell as in their own ability to accomplish thework assigned to themeffectively.

Orientationorinductionisthetaskofintroducingthenewemployeestotheorganisationanditspolicies,proceduresandrules.

Atypicalformalorientationprogrammemaylastadayorlessinmostorganisations.Duringthistime,thenewemployeeisprovidedwithinformationaboutthecompany,itshistory,itscurrentposition,thebenefitsforwhichheiseligible,leaverules,restperiods,etc.Alsocoveredarethemoreroutinethingsanewcomermustlearn,suchasthelocationoftherestrooms,breakrooms,parkingspaces,cafeteria,etc.Insomeorganisations,allthisisdoneinformallybyattachingnewemployeestotheirseniors,whoprovideguidanceontheabovematters.

!Caution Lectures,handbooks,films,groups,seminarsarealsoprovidedtonewemployeessothattheycansettledownquicklyandresumethework.

5.1.1 Objectives

Induction serves the following purposes:

a. Removes fears:Anewcomer steps into anorganizationas a stranger.He isnew to thepeople,workplaceandworkenvironment.Heisnotverysureaboutwhatheissupposedtodo. Inductionhelpsanewemployeeovercomesuch fearsandperformbetteron thejob.

Itassistshiminknowingmoreabout:

Thejob,itscontent,policies,rulesandregulations.z�

Thepeoplewithwhomheissupposedtointeract.z�

Thetermsandconditionsofemployment.z�

b. Creates a good impression:Anotherpurposeofinductionistomakethenewcomerfeelathomeanddevelopasenseofprideintheorganisation.Inductionhelpshimto:

Adjustandadapttonewdemandsofthejob.z�

Get along with people.z�

Get off to a good start.z�

Throughinduction,anewrecruitisabletoseemoreclearlyastowhatheissupposedtodo,howgoodthecolleaguesare,howimportantisthejob,etc.Hecanposequestionsand


Notes


seekclarificationsonissuesrelatingtohis job.Inductionisapositivestep, inthesense, itleavesagoodimpressionaboutthecompanyandthepeopleworkingthereinthemindsofnewrecruits.Theybegintotakeprideintheirworkandaremorecommittedtotheirjobs.

c. Acts as a valuable source of information:Inductionservesasavaluablesourceofinformationtonewrecruits.Itclassifiesmanythingsthroughemployeemanuals/handbook.Informaldiscussionswithcolleaguesmayalsoclearthefogsurroundingcertainissues.Thebasicpurposeofinductionistocommunicatespecificjobrequirementstotheemployee,puthimateaseandmakehimfeelconfidentabouthisabilities.

Notes Employee Outsourcing

Employee outsourcing refers to the shifting from traditional employee-employerrelationship.Itinvolvestransferringemployerresponsibilitytostaffingagencyorplacementagency.Outsourcinghumanresourcefunctionsallowsfocusingonbusinessdevelopmentand provides administrative relief from many employment responsibilities such aspayrollpreparation,incometaxreporting,employeebenefitsandworkerscompensation.Itmaintainsa three-wayrelationshipbetweenorganisation,employeesandtheoutsideplacementorstaffingagency.Theemploymentagencyworksasaco-employer.Thistypeofrelationshipbetweenorganisationandemploymentagency,helpsingivingafullrangeofservicesandtotransferorsharemanyemployerliabilitiesandresponsibilities.

Pros and Cons of Employee Outsourcing

Althoughoutsourcingofemployeeshavemanyadvantagesbutbesidesthatithassomeproblemsalso.Herearetheprosandconsofoutsourcinghumanresources:

Pros

1. HR outsourcing enables businesses to concentrate on their core competencies,ultimatelyresultinginbetterproductivityandresultsforthecompany.

2. WithHRoutsourcing,clientcompaniescanutilizetheirresourcesmoreeffectively,asthehumanresourcesdepartmentistakencareof.Itresultsinstreamlinedbusinessprocesses.

3. Employee outsourcing enables employees of client companies to enjoy benefitstypically offered in larger companies, these being outsourced from the staffingagency or employee leasing organization. The comprehensive benefits packageofferedbysuchstaffingagenciesincreasesthebuyingpowerofcompaniesinthejobmarketandfacilitatesgreaterretainingofemployees.

4. Thestaffingorplacementoremploymentagencyconsistsofexpertsinthebusinessandlegalfields,whocanpositivelyinfluencetheclientcompanyandhelpitmakebetter decisions.

Cons

1. Oneofthemostsignificantconcernswithoutsourcingemployeesisthechanceofmisplacedloyalty.Employeesoutsourcedmightnotputinthesimilarkindofeffortashiredstaffordisplaysuchaninterestinthecompany.

2. Thismayleadstothequestionofcontrol.Itmaybedifficulttocontrolemployeesincertaincasesofoutsourcingagreementswheretheemployeeishiredoncontractanddoesn’tneedtoreporttoanyonewithintheorganization.

3. Clients must watch out for hidden costs or unexpected changes in the servicesoffered,andotheraspectsthatdifferfromthecontracttheysigned.


Notes


Self Assessment


1. Orientationhasalong-termbenefittotheorganisation.

2. Mostorganisationsputnewrecruitsonprobationforagivenperiodoftime.

3. Goodorientationprogrammesstillrequirefollowup.

4. Oneofthemostsignificantconcernswithoutsourcingemployeesisthechanceofmisplacedloyalty.

5. Employee outsourcing refers to the shifting from traditional employee-employerrelationship.

5.1.2 Induction Programme: Steps

The HR department may initiate the following steps while organising the inductionprogramme:

Welcometotheorganisation.zz

Explainaboutthecompany.zz

Showthelocation/departmentwherethenewrecruitwillwork.zz

Givethecompany’smanualtothenewrecruit.zz

Provide details about various work groups and the extent of unionism within thezz

company.

Give details about pay, benefits, holidays, leave, etc. emphasise the importance ofzz

attendanceorpunctuality.

Explain about future training opportunities and career prospects.zz

Clarifydoubts,byencouragingtheemployeetocomeoutwithquestions.zz

Take the employee on a guided tour of buildings, facilities, etc.Hand him over to hiszz

supervisor.

(a) Content:Thetopicscoveredinemployeeinductionprogrammemaybestatedthus

1. Organisational issuesHistoryofcompanyzz Overview of production processzz

Namesandtitlesofkeyexecutiveszz Companypoliciesandruleszz

Employees’titleanddepartmentzz Disciplinaryprocedureszz

Layoutofphysicalfacilitieszz Employees’handbookzz

Probationaryperiodzz Safetystepszz

Products/servicesofferedzz

2. EmployeebenefitsPayscales,paydayszz Training avenues zz

Vacations,holidayszz Counselling zz

Rest pauseszz Insurance,medical,recreation,retirementzz

benefits3. Introductions

To supervisorszz To trainerszz

Toco-workerszz Toemployeecounsellorzz

4. Job dutiesJob locationzz Overview of jobszz

Jobtaskszz Job objectiveszz

Jobsafetyneedszz Relationship with other jobszz

Table 5.1: Contents of Employee Induction Programme


Notes


(b) Socialization: Socialisation is a process through which a new recruit begins to understand andacceptthevalues,normsandbeliefsheldbyothersintheorganisation.HRdepartmentrepresentativeshelpnewrecruitsto“internalisethewaythingsaredoneintheorganization”.Orientationhelpsthenewcomerstointeractfreelywithemployeesworkingatvariouslevelsandlearnbehavioursthatareacceptable.Throughsuchformalandinformalinteractionanddiscussion, newcomersbegin tounderstandhow thedepartment/company is run,whoholdspowerandwhodoesnot,whoispoliticallyactivewithinthedepartment,howtobehaveinthecompany,whatisexpectedofthem,etc.Inshort,ifthenewrecruitswishtosurviveandprosperintheirnewworkhome,theymustsooncometo‘knowtheropes’.Orientationprogrammesareeffectivesocialisationtoolsbecausetheyhelptheemployeestolearnaboutthejobandperformthingsinadesiredway.

(c) Follow up: Despite the best efforts of supervisors, certain dark areasmay still remainin theorientationprogramme.Newhiresmaynothaveunderstoodcertain things.Thesupervisors,whilecoveringalargeground,mayhaveignoredcertainimportantmatters.

Thebasicpurposeofsuchfollowuporientationistoofferguidancetoemployeesonvariousgeneralaswellasjobrelatedmatters–withoutleavinganythingtochance.Toimproveorientation,thecompanyshouldmakeaconsciousefforttoobtainfeedbackfromeveryoneinvolvedintheprogramme.Thereareseveralwaystogetthiskindoffeedbacki.e.throughroundtablediscussionswithnewhiresaftertheirfirstyearonthejob,throughin-depthinterviewswithrandomlyselectedemployeesandsuperiorsandthroughquestionnaires.

Task Prepareandgiveashortpresentationtitled,“Howtoorientnewemployees?”

5.2 Placement

Afteracandidatehasbeenselected,heshouldbeplacedonasuitablejob.Placementistheactualpostingofanemployeetoaspecificjob.

Placementisaprocessofassigningaspecificjobtoeachoftheselectedcandidates.Itinvolvesassigningaspecificrankandresponsibilitytoanindividual.Itimpliesmatchingtherequirementsofajobwiththequalificationsofthecandidate.

Itinvolvesassigningaspecificrankandresponsibilitytoanemployee.Theplacementdecisionsaretakenbythelinemanageraftermatchingtherequirementsofajobwiththequalificationsof a candidate.Mostorganisationsputnew recruitsonprobation for agivenperiodof time,afterwhichtheirservicesareconfirmed.Duringthisperiod,theperformanceoftheprobationeris closelymonitored. If the new recruit fails to adjust himself to the job and turns out poorperformance, the organisationmay consider his name for placement elsewhere. Such secondplacementiscalled‘differentialplacement’.Usuallytheemployees’supervisor,inconsultationwith thehigher levelsof linemanagement, takesdecisionsregarding the futureplacementofeachemployee.

Placementistheassignmentorreassignmentofanemployeetoanewordifferentjob.Itincludesthe initialassignmentofnewemployeesand thepromotion, transfer,ordemotionofpresentemployees.Similartonewcomers,presentemployeesmustbeinternallyrecruited,selectedandorientedbeforetheycanbeplacedindifferentpositions.

Placement is an important human resource activity. If neglected, it may create employeeadjustmentproblems leading to absenteeism, turnover, accidents,poorperformance, etc.Theemployeewill also suffer seriously.Hemayquit theorganisation in frustration, complainingbitterlyabouteverything.Properplacementis,therefore,importanttoboththeemployeeandthe organisation.


Notes


Self Assessment

Fillintheblanks:

6. Apositioncanbefilledbydirectrecruitmentbythecompanyorby..............theemployeefromastaffingagency.

7. Transfersandpromotionsareintendedtomaketheemployee..............andgrowoveraperiodoftime.

8. Outsourcinghumanresourcefunctionsallowsfocusingonbusiness..............andprovides................relieffrommanyemploymentresponsibilities.

9. Employeesoutsourcedmightnotputinthesimilarkindofeffortas..............staff.

10. ..............istheactualpostingofanemployeetoaspecificjob.

11. Newrecruitsmustbe....................properlysothattheybecomeproductivecontributors.

12. Through..............,anewrecruitisabletoseemoreclearlyastowhatheissupposedtodo.

13. Orientation is the task of introducing the new employees to the organisation and its..............

14. ..............or..............maybedefinedasaprocessofguidingandcounsellingtheemployeetofamiliarisehimorherwiththeorganisationandthejobsituation.

15. Ifplacementisneglected,itmaycreateemployeeadjustmentproblemsleadingto..............,turnover,accidents,poorperformance,etc.

Did u know? What are the significances of placement?

Thesignificancesofplacementareasfollows:

1. Itimprovesemployeemorale.

2. Ithelpsinreducingemployeeturnover.

3. Ithelpsinreducingabsenteeism.

4. It helps in reducing accident rates.

5. Itavoidsmisfitbetweenthecandidateandthejob.

6. It helps the candidate to work as per the predetermined objectives of theorganization.

Placement,itshouldtheremembered,shouldbemadewithaslittledisruptiontotheemployeeandorganisationaspossible.Tothisend,newrecruitsmustbeorientedproperlysothattheybecomeproductivecontributors.Thereshouldbeaconsciousanddeterminedeffort toadaptthenewrecruittotheorganization’sculture(therules,jargon,customsandothertraditionsthatclarifyacceptableandunacceptablebehaviourinanorganization)byconveyingtotheemployeehowthingsaredoneandwhatmatters.Whennewemployeesknowwhatisexpectedofthem,theyhavebetterorganizationalperformanceandlessfrustrationanduncertainty.


Notes


Notes Outplacement

Employersalsoshouldmakeoutplacementservicesavailabletoemployees.Outplacementservices tend to stimulate laid-off workers to pursue retraining opportunities and torelocate. Likewise, they provide opportunities for building social support. Althoughthe effectiveness of outplacement services varies by employee level and needs, theirroleinprovidingabaseofoperationsforcontactingemployersappearstobeuniformlyvaluable.Additionally,employees’perceptionsoffairtreatmentareprobablyenhancedbyoutplacementservices.Althoughresearchevidencehasnotdefinitelyestablishedthatoutplacementprogrammes are effective inhelpingworkers become re-employed, suchprogrammesmayhaveanadditionalmajorbenefitoffacilitatingemployees’psychologicaladjustmenttothelossoftheirjobsandinhelpingregaintheirself-confidence.

5.3 The Challenges

Thesupervisorsmustconduct the inductionprogrammethroughthechecklist.Tostrengthenformalorientationefforts,abuddysystemmayalsobeintroduced.Here,anexperiencedemployeetakestheworkerroundtheorganisation,introducesthenewcomertootherworkersandanswersthenewcomer’squestionsinafriendly,informaltone.InanycasetheHRdepartmentandthesupervisortakingchargeoftheorientationefforts,shouldseethatthenewcomerisnot:

Overburdenedwithtoomanyforms.zz

Overwhelmedwithtoomuchtoabsorbinashorttime.zz

Askedtodojobsthatarecomplexandhazardousandwithahighchanceoffailure.zz

Pushedintothejobwithasketchyorientation.zz

Case Study Welcome to Bharat Bank

TheBharatBankisoneofthelargestbanksinSouthIndia.Ithasfifty-fivebranches,withover2,000employees.Thebank’sheadquartersareinMangalore.

BharatBankregularlyhiresseveraldozenfreshcollegegraduateseachyeartoparticipateinthebank’smanagementtrainingprogramme.It is theobjectiveofthisprogrammetopreparefuturelendingofficersandbranchmanagers.Inthesummerof2001,RanjitRaiwaspromotedfromhispositionasacompensationanalysttoassistantHRManager.Themajor responsibilityofhisnew jobwouldbe todirect thebank’smanagement trainingprogramme.

Ranjit obtained all the information he could get on the training programme. It madefascinating reading. The programme had been in effect for sixteen years. Over thatperiod,221individualshadbeenrecruitedfortheprogramme,alldirectlyoutofcollege.Approximately10percentoftheseenteredwithamaster’sdegree,therestwithbachelor’sdegreesinbusinessadministration.Ofthe221recruits,47werestillworkingforBharatBank.Theaveragelengthoftimerecruitsstayedwiththebankwaslessthantwoyears.More surprising was the fact that 34 of these 47 individuals had been hired within the past threeyears.Asummaryofhisfindingsareshownbelow:

Contd…


Notes


Year Number of Trainees Hired Still Currently Employed

2000 28 22

1999 24 9

1998 23 3

1997 18 2

1996 15 4

1995 15 1

1990-94 61 2

1985–89 37 4

Ranjitwasinterestedinhowmuchofthisturnoverwasattributabletovoluntaryresignationsandhowmanyduetobankfirings.Alookthroughthepersonalrecordsindicatedfewerthan15percentofthosewholeftwereterminatedbecausethebankwasunhappywiththeir performance. Ranjit thought that the bank’s selection procedure was effective inidentifyingpeoplewhowouldmakegoodemployees.

Themanagementtrainingprogrammetookthirty-monthstocomplete.Alltraineeswentthroughtheprogrammewhichgaveexposuretosixmainareaswithinthebank.Itwasestimated that those recruitswho successfully completed the training programme andsoughttobebranchmanagers,shouldachievetheirgoalwithinfouryearsafterfinishingthethirty-monthprogramme.Infact,everytraineehiredpriorto1995waseitheralendingofficer,abranchmanager,oraseniorofficeratthebank’sheadquarters.

Questions

1. Whatfactorsmaybecausingthelowretentionrate?

2. Whyweresuchalargepercentageleavingthebank?

3. WhatevidencedoesRanjitprovidetosupporthiscontentionthatthebank’sselectionprocessisworkingeffectively?Doyouagreewithhisposition?

4. Howwouldyoudescribethebank’ssocialisationprogramme?

5. Whatchangesmightyouconsidertoincreasetheretentionrate?

5.4 Summary

Orientationorinductionisthetaskofintroducingthenewemployeestotheorganizationzz

anditspolicies,proceduresandrules.

Inductionisimportantasitservesthepurposeofremovingfears,creatingagoodimpressionzz

andactsasavaluablesourceofinformation.

Placement is theactualpostingofanemployee toaspecific job. It involvesassigningazz

specificrankandresponsibilitytoanemployee.

Placement is a process of assigning a specific job to each of the selected candidates. Itzz

involvesassigningaspecificrankandresponsibilitytoanindividual.Itimpliesmatchingtherequirementsofajobwiththequalificationsofthecandidate.

Placementisanimportanthumanresourceactivity.zz

Properplacementis,therefore,importanttoboththeemployeeandtheorganization.zz

Employersalsoshouldmakeoutplacementservicesavailabletoemployees.zz

Outplacementservicestendtostimulatelaid-offworkerstopursueretrainingopportunitieszz

andtorelocate.Likewise,theyprovideopportunitiesforbuildingsocialsupport.


Notes


Althoughtheeffectivenessofoutplacementservicesvariesbyemployeelevelandneeds,zz

their role in providing a base of operations for contacting employers appears to beuniformlyvaluable.

5.5 Keywords

Content:Thetopicscoveredinemployeeinductionprogrammearecalledcontents.

Follow-up: It is the process of taking feedback and providing guidance during inductionprogramme.

Induction: Introduction of a person to the job and the organisation.

Induction Programme: The induction programme clarifies the terms and conditions ofemployment,communicatesspecificjobrequirementstotheemployeesandprovidesconfidencein the company as well as in their own ability to accomplish the work assigned to themeffectively.

Outplacement: Outplacement services tend to stimulate laid-offworkers topursue retrainingopportunities and to relocate.

Placement: Actual posting of an employee to a specific job – with rank and responsibilitiesattached to it.

Socialisation: The process through which the new recruit begins to understand and accept the values,normsandbeliefsheldbyothersintheorganization.


1. Examinetheterms‘placement’and‘induction’.Analysetheirobjectives.

2. What benefits do you think can socialisation offer for the (a) new employee (b)organisation?

3. Orientationisrequiredwhentheselectionpolicyisdefective.Whenemployeesareselectedproperly,theydonotneedtobeoriented.Doyouagreeordisagree?Why/Whynot?

4. Whatdoyouthinktobethecomponentofanemployeeinductionprogramme?Whyisitimportantinanorganisation?

5. Whatspecificpointsmustoneconsiderwhileplacinganewrecruit?

6. Whataccordingtoyoushouldbethemostimportantstepsinaninductionprogramme?

7. Evaluatetheemployeebenefitsaccruingfrominduction.

8. Whatisthesignificanceofproperplacementandinduction?

9. Whatdoesanoutplacementmean?

10. Discussthechallengestowardsplacement.


1. False 2. True

3. True 4. True

5. True 6. outsourcing

7. versatile 8. development,administrative


Notes


9. hired 10. Placement

11. oriented 12. induction

13. policies 14. Induction,orientation

15. absenteeism










Online links http://wiki.answers.com/Q/What_is_induction_and_Placement

http://www.slideshare.net/dasaritapaswi/placement-induction

http://bmmanhum1109.blogspot.com/2008/08/placement-and-induction-in-hrm.html

http://www.scribd.com/doc/19304519/Recruitment-Selection-Induction-and-Placement

Unit 6: Training and Development

Notes



CONTENTS

Objectives

Introduction

6.1 Definitions

6.1.1 Characteristics of Training

6.2 TrainingandDevelopment(T&D)Process

6.3 MethodsofEmployeeTraining

6.3.1 On the Job Training Methods

6.3.2 Off the Job Training Methods

6.3.3 DesigningtheTrainingProgramme

6.4 ExecutiveDevelopment

6.4.1 MethodsofExecutiveDevelopment

6.5 Evaluating the Training Effort

6.6 Summary

6.7 Keywords



Objectives


Definethetermtrainingzz

Discusstheconceptofdevelopmentzz

StatetherelevanceofT&Dprocesszz

Explainthemethodsofemployeetrainingzz

Realizeandevaluatetrainingeffortszz

Introduction

Training improves, changes, and moulds the employee’s knowledge, skill, behaviour andaptitudeandattitudetowardstherequirementofthejobandtheorganization.Afteranemployeeisselected,placedandintroducedinanorganization,he/shemustbeprovidedwithtrainingfacilitiesinordertoadjusthim/hertothejob.

6.1 Definitions

AccordingtoFlippo,trainingistheactofincreasingtheknowledgeandskillsofanemployeefordoing a particular job.


Notes


Trainingmaybedefinedasaplannedprogrammedesignedtoimproveperformanceandbringaboutmeasurable changes in knowledge, skills, attitude and social behaviour of employees.Training is concernedwith imparting anddeveloping specific skills for aparticularpurpose.Trainingistheprocessoflearningasequenceofprogrammedbehaviour.Thebehaviourbeingprogrammed,isrelevanttoaspecificphenomena,thatisajob.TrainingistheprocessofincreasingtheskillsofanemployeefordoingaparticularJob.

Did u know?Development refersbroadly to thenatureanddirectionofchange inducedin employees, particularly managerial personnel, through the process of training andeducation.

6.1.1 Characteristics of Training

1. Increasesknowledgeandskillsfordoingthejob.

2. Bridgesthegapbetweenjobsneedsandemployeeskills,knowledgeandbehaviour.

3. Job-orientedprocess,vocationalinnature.

4. Short-termactivitydesignedessentiallyforoperatives.

Notes Difference between Training and Development

Trainingoftenhasbeenreferredtoasteachingspecificskillsandbehaviour.Itisusuallyreservedforpeoplewhohavetobebroughtuptoperforminglevelinsomespecificskills.Theskillsarealmostalwaysbehaviouralasdistinctfromconceptualorintellectual.

Development is considered to bemore general than training and it is aimed towardsmanagement people. Usually the intent of development is to provide knowledge andunderstandingthatwillenablepeopletocarryoutnon-technicalorganisationalfunctionsmoreeffectively,suchasproblem-solving,decision-makingandrelatingtopeople.

Trainingisashort-termprocessutilizingasystematicandorganizedprocedurebywhichnon-managerialpersonnellearntechnicalknowledgeandskillsforadefinitepurpose.

Development is a long-term educational process utilizing a systematic and organizedprocedurebywhichmanagerialpersonnel learn conceptual and theoretical knowledgefor general purposes.

Thus,trainingismeantforoperativesanddevelopmentismeantformanagers.Trainingtriestoimproveaspecificskillrelatingtoajob,whereasdevelopmentaimsatimprovingthetotalpersonalityofanindividual.Trainingisaoneshot-dealwhereasdevelopmentis an ongoing, continuous process. Training is a result of outsidemotivation,whereasdevelopmentismostlyaresultofinternalmotivation.Trainingseekstomeetthecurrentrequirement of the job, whereas development seeks to meet the future needs of theindividualandjob.Thustrainingisareactiveprocess,whereasdevelopmentisaproactiveprocess.

Example: Training & Development at TISCO

1. TISCOtakesuptraininganddevelopmentactivitiesinanintegratedwaywhichincludealllevelsofemployees.IthasitsowntrainingcentrenamedTISCOManagementDevelopment


Notes


Centre,besidesthis,itspersonnelaretrainedatTataManagementTrainingCentreatPuneandoutsidespecializedinstitutionlikeAdministrativeStaffCollegeofIndiaandIIM.

2. Trainingneedsofvariousemployeesareassessedonthebasisofmanpowerplanninganddeliberationsbetweenthetrainingmanagerandconcernedlinemanagers.Discussionsarealsoheldbetweenthetrainingmanagerandemployeesforassessingtrainingneeds.

Keepinginviewthelargenumberofitsemployees&theirtrainingneeds,TISCOorganizesthefollowingtypesoftrainingprogramme:

1. 4-tiermanagementdevelopmentcourses

2. Functional and cross-functional courses

3. Orientation courses

4. Need-basedseminars

5. Lecturemeetings

6. Eveningprogrammes

Thesecoursesaremeant for functionalandcross-functionalcourses.Thesecoursesaremeantfor managers and supervisor. Besides these, there are various courses on technical aspectslikemaintenance,production techniques, controls, systemsanalysis etc.,whicharemeant fortechnical people.

Training and Development at SICCL

SaharaIndiahasalwaysgivenaspecialemphasisontraininganddevelopmentofemployees.Toupgradetheskillsofemployees,ithasperformedmanytrainingprogrammesfromtimetotime.Saharabelievesthatorganizationandindividualshoulddevelopandprogresssimultaneouslyfortheirsurvivalandattainmentofmutualgoals.So,everymodernmanagementhastodevelopthe organization through human resource development and employee training is the mostimportantsubsystemofhumanresourcemanagement.SICCLhasalwaysconsidered trainingasaspecializedfunctionandasoneofthefundamentaloperativefunctionsforhumanresourcemanagement.

Significance of Training and Development at SICCL

1. Trainingincreasesproductivitybothintermsofquantityandquality.

2. Trainingensuresgreatersafetyandreducesemployeeaccidents.

3. Systematictraining,relievessupervisor,consumesmuchlessofatime.

4. Itincreasesorganizationalflexibilityandstability.

5. Goodtrainingheightenstheemployeemorale.

6. Providesinformationforfutureneedsinallareasoforganization.

7. Theorganizationbecomesmoreeffectiveindecision-makingandproblem-solving.

8. Developsasenseofresponsibilitytotheorganizationforbeingcompetent.

9. Aidsinorganizationaldevelopment.

10. Aidsinencouragingandachievingself-developmentandself-confidenceofemployees.


Notes


11. Createsabettercorporateimage.

12. Improvesthemoraleoftheworkforce.

Did u know? Areas of Training

TheAreasofTraining inwhich training is offeredmaybe classified into the followingcategories:

1. Knowledge:Herethetraineelearnsaboutasetofrulesandregulationsaboutthejob,thestaffandtheproductsorservicesofferedbythecompany.Theaimistomakethenewemployeefullyawareofwhatgoesoninsideandoutsidethecompany.

2. Technical Skills: The employee is taught a specific skill (e.g., operating amachine,handling computer etc.) so thathe canacquire that skill and contributemeaningfully.

3. Social Skills: Theemployeeismadetolearnabouthimselfandothers,andtodeveloparightmentalattitudetowardsthejob,colleaguesandthecompany.Theprincipalfocusisonteachingtheemployeehowtobeateammemberandgetahead.

4. Techniques: Thisinvolvestheapplicationofknowledgeandskilltovariouson-the-job situations. In addition to improving the skills and knowledge of employees,training aims at moulding employee attitudes: When administered properly, atrainingprogrammewillgoalongwayinobtainingemployeeloyalty,supportandcommitmenttocompanyactivities.

6.2 Training and Development (T&D) Process

Training Process

Identifying Training Needs

Preparing Training Programmes

Preparing the Learners

Implementing Training Programme

Performance Try-Out

Follow-Up Activities

Figure 6.1: A Systematic Approach to Training

Trainingismosteffectivewhenitisplanned,implementedandevaluatedinasystematicway.Unplanned,uncoordinatedandhaphazardtrainingeffortsgreatlyreducethelearningthatcanbe expected.


Notes


Assessment Implementation Evaluation Determine training needs

Select training methods Compare training outcomes against criteria

Identify training objectives Conduct training

Table 6.1: Systematic Training

1. Identifying training needs: Trainingneedsareidentifiedbyfollowingtypesofanalysis:

(i) Organizational analysis: Itinvolvesastudyoftheentireorganizationintermsofitsobjectives,itsresources,theutilizationoftheseresources,inordertoachievestatedobjectivesanditsinteractionpatternwithenvironment.

(ii) Task or role analysis: Thefocushereisontherolesplayedbyanindividualandthetraining needed to perform such roles. Questionnaires, interview reports, testsandobservationaregenerallyusedtocollect jobrelatedinformationfromtimetotime.Aftercollectingtheinformation,anappropriatetrainingprogrammemaybedesigned.

(iii) Manpower analysis: Therearethreeissuestoberesolvedthroughmanpoweranalysis.First,we try tofindwhetherperformance is satisfactoryand training is required.Second,whethertheemployeeiscapableofbeingtrainedandthespecificarea inwhichthetrainingisneeded.Finally,weneedtostateweatherpoorperformance.Onthejobneedtobereplacedbythosewhocandothejob.

2. Preparing Training Programmes:

(i) Typeofemployeestobetrained,newcomersoroldemployees

(ii) Typeoftrainingmaterialthatmayberequired

(iii) Durationoftrainingprogramme

(iv) On-the-job training or off-the-job training

(v) Methodsthatmaybeusedforprovidingtraining

(vi) Resource personnel who will provide training.

3. Preparing the Learners:

(i) Putting the learner at ease

(ii) Explainingtheimportanceofthejobanditsrelationshiptoworkflow

(iii) Explaining the needs and objectives of the training in relationship to their jobs

(iv) Creatinginterestamongthelearnersabouttraining

(v) Placingthelearnertoasclosetotheirworkingplaceaspossibleinthecaseofon-the-job training.

4. Implementing Training Programme: Training can improve individual and teamperformance,producingresults that impact thebottomline.Thepotential forsuccess isenhancedby followinga logicalprocess.Employersofall typeswill reapbenefits fromimplementinganeffectivetrainingprogram.

Effectivenessofthetrainingprogramischecked

(i) Written/oraltests

(ii) Observation


Notes


(iii) Findingoutindividual/groupsreactiontotrainingwhiletrainingisgoingon

(iv) Interviews

(v) Questionnaires

(vi) Opinionoftopmanagementonaftertrainingperformance

(vii) Resultscomparisonintermsofproductivity,qualityofwork.

5. Performance Try out: Traineeaskedtoperformthejobseveraltimesslowlywhileexplainingeach step

(i) Mistakesarecorrected

(ii) Gradualbuildingupofspeedandskills

(iii) Onceasatisfactorylevelisachievedtraineeisputonhisownbutnotabandoned.

6. Follow up activities:

(i) Putting trainee on his own

(ii) Checkingfrequentlytoseeifhehasfollowedinstructions

(iii) Taperingoffexcesssupervisionandclosefollow-upuntiltraineeisqualifiedtoworkundernormalsupervision.

6.3 Methods of Employee Training

6.3.1 On the Job Training Methods

Job Instruction Training (JIT)

1. Job Instruction Training or training through step by step: It is usedprimarily to teachworkershowtodotheircurrentjobs.Atrainer,supervisororco-workeractsasthecoach.VariousstepsofJITareasfollows:

Preparing: z� Overview,purposeanddesiredoutcomesofajob

Presentation: z� Trainerdemonstratesthejob

Performance try out: z� Traineeperformsandpracticesinfrontoftrainerfollowup

ItwasdevelopedduringSecondWorldWar.Itisafourstepprocessinvolvingpreparation,presentation,performanceandfollowup.Itisusedtoteachworkershowtodotheircurrentjob.Thetrainerorsupervisorworkasacoach.Thefourstepsare:

(i) Thetraineereceivesanoverviewofthejob,itspurposeanditsdesiredoutcome.

(ii) Thetrainerdemonstratesthejobtotheemployees.

(iii) Employeeispermittedtocopythetrainer’sway.

(iv) Demonstrationbythetrainerandpracticebythetraineearerepeateduntilthetraineemasterstherightwaytohandlethejob.

(v) Finally,theemployeedoesthejobindependentlywithoutsupervision.


Notes


Merits Demerits 1. Trainee learns fast through practice

and observation. 2. It is economical. 3. Trainee gains confidence quickly as

he does the work himself in actual setting with the help from supervisor.

4. It is the most suitable for unskilled and semi skilled jobs where the job operations are simple and easy.

1. The trainee should be as good as a trainer.

2. The trainee while learning may damage equipment waste material and cost accidents.

3. Experienced workers cannot use machinery while it has been used for trainee.

Table 6.2: Merits and Demerits of JIT

2. Coaching and Mentoring: Coaching is a one-on-one relationship between trainees and supervisors which offer workers continued guidance and feedback on how well theyarehandlingtheirtasks.Mentoringisaparticularformofcoachingusedbyexperiencedexecutivestogroomjunioremployees.

Coaching is a training and/or developmental approach inwhich the learner follows alearning process atwork, usuallywith the involvement of themanager or supervisor,butusingrealworkprojects.This learningatworkisdifferentfromtraditionaltrainingmethods.Itisachievedbytheuseofactualwork,asopposedtothemoreartificialnatureof training course activities.

Projectmanagementisanapproachthatfollowsonnaturallyfromcoachingandusuallyrelatestothedevelopmentofexperiencedpeoplewhoneedtohavetheirskillincertainfunctionsisachieved.Theyneedtoincreasethenumberandrangeoftheirskills;orwell-experiencedpersonsmightneedtobeextendedortestedbyperformingtaskswithwhichtheyhavehadnopreciousexperiencebutwillneediftheyaretoprogressintheircareers.

Whereas coaching is usually applied to operative and similar tasks mentoring is anapproachthathasapplicationinhigher-leveland/ormorecomplexsituations.Thereareanumberofdifferentwaysinwhichmentoringisapplied,butusuallyoneexperiencedpersonwillact,potentoveranextendedperiod,asthementor,supporter,advisor,eventarranger,etc.tothelearner.

Merits Demerits 1. There is an excellent opportunity to

learn quickly through continuous interaction.

2. Constant guidance helps the trainee to be on track, using facilities to good advantage.

1. It may create feelings of jealousy among other workers who are not able to show equally good performance.

2. It mentors form overly strong bonds with trainees, unwarranted favouritism may result. This can have a demoralizing effect on other workers, affecting their work performance in a negative way.

Table 6.3: Merits and Demerits of Coaching and Mentoring

3. Job Rotation Training: Jobrotationtraininginvolvesthemovementoftraineefromonejobtoanother.Thishelpshimtohaveageneralunderstandingofhowtheorganisationfunctions. The purpose of job rotation is to provide trainees with a larger organisational perspective and a greater understanding of different functional areas as well as a better senseoftheirowncareerobjectivesandinterests.Apartfromrelievingboredom,jobrotationallowstraineestobuildrapportwithawiderangeofindividualswithintheorganisation,facilitating future cooperation among departments. The cross-trained personnel offer agreatamountofflexibilityfororganisationswhentransfers,promotionsorreplacementsbecomeinevitable.


Notes


Jobrotationmayposeseveralproblems,especiallywhenthetraineesarerolledonvariousjobsatfrequentintervals.Insuchacase,traineesdonotusuallystaylongenoughinanysinglephaseoftheoperationtodevelopahighdegreeofexpertise.Forslowlearners,thereis little roomto integrate resourcesproperly.Traineescanbecomeconfusedwhen theyareexposedtorotatingmanagers,withcontrastingstylesofoperation.Today’smanager’scommandsmaybereplacedbyanotherset fromanothermanager!Further, jobrotationcan be quite expensive.A substantial amount ofmanagerial time is lostwhen traineeschangepositions,becausetheymustbeacquaintedwithdifferentpeopleandtechniquesineachdepartment.Developmentcostscangoupandproductivityisreducedbymovingatraineeintoanewpositionwhenhisefficiencylevelsbegintoimproveatthepriorjob.Inexperienced traineesmay fail tohandlenewtasks inanefficientway. Intelligentandaggressivetrainees,ontheofferhand,mayfindthesystemtobethoroughlyboringastheycontinuetoperformmoreorlesssimilarjobswithoutanystretch,pullandchallenge.Togetthebestresultsoutofthesystem,itshouldbetailoredtotheneeds,interestsandcapabilitiesof the individual trainee,andnotbea standardsequence thatall traineesundergo. JobRotationallowsthemangertooperateindiverserolesandunderstandthedifferentissuesthatcropup.Ifsomeoneisaspiringtobeacorporateleader,thenheorshemusthavethistypeoftraining.Arecentstudyindicatedthatthesinglemostsignificantfactorthatleadstoleader’sachievementwasthevarietyofexperiencesindifferentdepartments,businessunits,cities,andcountries.

4. Apprenticeship Training: Itisthemostoldestandcommonlyusedmethodespeciallywhenproficiencyinajobistheresultofarelativelylongperiodof2yearsto3yearsforpersonsofsuperiorabilityandfrom4to5yearsforotherse.g.draughtsman,amachinist,apainter,atoolmaker,apatterndesigner,mechanic,carpenter,weavers,fitters,etc.

Themeritsofthesemethodsare:

(i) Askilledworkforceismaintained.

(ii) Immediatereturnscanbeexpectedfromtraining.

(iii) Theworkmanshipisgood.

(iv) The hiring cost is lower because of low turnover and reduced production cost.

(v) Theloyaltyofemployeesisincreasedandopportunitiesforgrowtharefrequent.

5. Committee Assignments: Traineesareaskedtosolveanactualorganizationalproblem.Themethodhelpstodevelopteamspiritandworkunitedlytowardscommongoals.

Inthismethod,traineesareaskedtosolveanactualorganisationalproblem.Thetraineeshave toworktogetherandoffersolutionto theproblem.Assigningtalentedemployeestoimportantcommitteescangivetheseemployeesabroadeningexperienceandcanhelpthemtounderstandthepersonalities,issuesandprocessesgoverningtheorganisation.Ithelps themtodevelop teamspiritandworkunitedly towardcommongoals.However,managers should very well understand that committee assignments could becomenotorioustimewastingactivities.

The above on-the-jobmethods are cost effective.Workers actually producewhile theylearn.Sinceimmediatefeedbackisavailable,theymotivatetraineestoobserveandlearntherightwayofdoingthings.Veryfewproblemsariseinthecaseoftransferoftrainingbecausetheemployeeslearnintheactualworkenvironmentwheretheskillsthatarelearntare actually used.On-the-jobmethodsmay cause disruptions in production schedules.Experiencedworkerscannotusethefacilitiesthatareusedintraining.Poorlearnersmaydamagemachineryandequipment.Finally,ifthetrainerdoesnotpossessteachingskills,thereisverylittlebenefittothetrainee.


Notes


6.3.2 Off the Job Training Methods

1. VestibuleTraining

2. Roleplaying

3. Lecturemethod

4. Conference/discussionapproach

5. ProgrammedInstruction

6. VirtualOrganisationsandE-Learning

7. BehaviourallyExperiencedTraining

1. Vestibule Training: Itisaclassroomtraining,whichisoftenimpartedwiththehelpoftheequipment,andmachines,whichareidenticalwiththoseinuseintheplaceofwork.Thetechniqueenablesthetraineetoconcentrateonlearningthenewskillratherthanperforminganactualjob.Itisaveryefficientmethodoftrainingsemi-skilledpersonnel,particularlywhenmanyemployeeshavetobetrainedforthesamekindofwork.Trainingisgenerallygiveninformoflectures,conferences,casestudies,role-playinganddiscussions.

2. Role playing: Itisdefinedasamethodofhumaninteractionthatinvolvesrealisticbehaviourinimaginarysituations.Thismethodoftraininginvolvesaction,doingandpractice.Theparticipantsplaytheroleofcertaincharacters,suchastheproductionmanager,mechanicalengineer, superintendents, maintenance engineers, quality control inspectors, foreman,workersandthelike.Thismethodismostlyusedfordevelopinginterpersonalinteractionsand relations.

3. Lecture method: Thelectureisatraditionalanddirectmethodofinstruction.Theinstructororganizesthematerialandgivesittoagroupoftraineesintheformofatalk.Tobeeffective,thelecturemustmotivateandcreateinterestamongthetrainees.Anadvantageoflecturemethodisthatitisdirectandcanbeusedforalargegroupoftrainees.Thus,costsandtimeinvolvedarereduced.Themajorlimitationofthelecturemethodisthatitdoesnotprovidefortransferoftrainingeffectively.

4. Conference/discussion approach: In this method, the trainer delivers a lecture andinvolves the trainee inadiscussionso thathisdoubtsabout the jobgetclarified.Whenbigorganizationsusethismethod,thetrainerusesaudio-visualaidssuchasblackboards,mock-ups and slides; in some cases the lectures are videotaped or audio taped. Eventhe trainee’s presentation can be taped for self-confrontation and self-assessment. Theconference is, thus, a group-centered approach where there is a clarification of ideas,communicationofproceduresandstandardstothetrainees.Thoseindividualswhohaveageneraleducationalbackgroundandwhateverspecificskillsarerequired–suchastyping,shorthand,officeequipmentoperation,filing,indexing,recording,etc.–maybeprovidedwithspecificinstructionstohandletheirrespectivejobs.

5. Programmed instruction: Thismethodhasbecomepopular inrecentyears.Thesubject-mattertobelearnedispresentedinaseriesofcarefullyplannedsequentialunits.Theseunits arearranged fromsimple tomore complex levelsof instruction.The traineegoesthrough theseunits by answeringquestions orfilling the blanks. Thismethod is, thus,expensiveandtime-consuming.

6. Virtual Organisations and E-Learning: Thevirtualorganisationisatemporarynetworkofcompaniesthatcometogetherquicklytoexploitfastchangingopportunities.Partnersinavirtualorganisationgenerallysharecosts,skillsandaccess to internationalmarkets.Eachpartner contributes to the virtual organisationwhat it is best at—its core capabilities. Inmanyhightechindustries,virtualorganisationsrelyheavilyoninternalcomputernetworks


Notes


oreven the Internet toprovide instantaneouscommunicationsandaccess topeoplewhomaybeinmanydifferentlocations,perhapsevenaroundtheworld.Speed,agilityandfastresponsearethegreatestbenefitsofgoingvirtual.Tocrossfertilizeideasandtogainfromanexperiencedpartnersspecializinginacorearea,virtualclassroomshavegainedcurrencyinrecenttimes.Avirtualclassroomemploysspecialcollaborationsoftwaretoenablemultipleremotelearners,usingtheirPCsorlaptopstoparticipateinliveaudioandvisualdiscussions,communicateviawrittentextandlearnviacontentsuchaspowerpointpresentations.OtherE-learningmethods include trainingdeliveredbyCD-ROM, intranet or internet, satellitebroadcasts and digital collaboration between partners willing to learn from each other.Informationprovidedmayvary froma singleneeded factorprocedure, to amoduleonanarrowtopic, toabroader trainingcourse, toa fulluniversitydegree.Manye-learningresourcesareentirelyself-paced,permittingemployeestoinitiateandpursuetrainingwhentheyrequireitandwhentheyreallyfindtime.Inothercases,e-learningcourseshavesetstart and end dates and interactivitywith an instructor and sometimes classmates. In asynchronouse-learningprogrammes,asmentionedabove,allparticipantsmust logontodiscussiongroupsorattendbroadcastsinavirtualclassroomatthesametime.

E-learningallowstraineestoimprovetheirskillsandknowledgeattheirowncomfortablepace. The trainee participates actively and is able to upgrade skills in a time-boundmanner.Ofcourse,e-trainingrequirestopmanagementsupport,uninterruptedinternetaccess, investments in establishing learning portals and is not suitable for impartingbehaviouralskillstotrainees.Technologybarrierslikebandwidthwillrestrictandhamperthe effectiveness of e-learning. Learning effectiveness might never match the level ofclassroomforalongtime.

7. Behaviourally Experienced Training: Sometrainingprogrammesfocusonemotionalandbehaviorallearning.Hereemployeescanlearnaboutbehaviourbyroleplayinginwhichtheroleplayersattempttoacttheirpartinrespectofacase,astheywouldbehaveinareal-lifesituation.Businessgames,cases,incidents,groupdiscussionsandshortassignmentsarealsousedinbehaviorally-experiencedlearningmethods.Sensitivitytrainingorlaboratorytrainingisanexampleofamethodusedforemotionallearning.Thefocusofexperientialmethodsisonachieving,throughgroupprocesses,abetterunderstandingofoneselfandothers. These are discussed elaborately in the section covering ExecutiveDevelopmentProgrammes.

Merits Demerits 1. Training is given in separate room,

distraction is minimized. 2. A training instructor, who knows how to

teach, can be effectively utilized. 3. The correct method can be taught

without interrupting production.

1. The splitting of responsibilities leads to organizational problems.

2. An additional investment in equipment is necessary.

3. This method is of limited value for the jobs which utilize equipment which can be duplicated.

Table 6.4: Merits and Demerits of Vestibule Training

6.3.3 Designing the Training Programme

Birth of a Training Programme

1. Initiativebyatrainingagency

2. Initiativebyorganization

3. Initiativebygroupoforganization


Notes


Identifying and Analysing Training Needs

1. UnderstandingTrainingNeeds

2. IdentifyingTrainingNeeds

3. AnalysingTrainingNeeds

Setting out the Programme Objective

1. Understandingtheobjectives

2. Needforsettingprogrammeobjectives

3. Establishingprogrammeobjectives–considerationandguidelines

Steps in Preparing an Action Plan for the Programme

1. Identifyprogrammecontents

2. Breakupprogrammecontentsintomodules

3. Categorizeprogrammecontentintoinformation,knowledge,skillsandattitudes

4. Organizeandsequenceprogrammecontents

5. Determinelearningoutcomeforeachsub-topicsormodules

6. Decideontrainingmethodsandtechniques

7. Allocatetime

8. Decideonsupportmaterials,facilitiesandequipment

9. Determineassignmentsformembersofthetrainingteam

10. Delegateresponsibilitiesformanagementandadministrationofprogramme

11. Establishmechanismformonitoringandevaluation.

Key Considerations in Designing a Training Programme

1. Organization’sobjectiveandwork

2. Training groups

3. Maintainmomentumoftheprogramme

4. Buildingflexibilityintheprogramme

5. Effectivemonitoringoftheprogramme

6. Trainingteam

7. Managementandadministrationoftheprogramme.

6.4 Executive Development

Executive development is the processinwhichexecutivesacquirenotonlyskillsandcompetenceintheirpresentjobsbutalsocapabilitiesforfuturemanagerialtasksofincreasingdifficultyandscope.

Managersaretheindispensableresources,thepricelessassetsofanorganisation.Theygeneratecreativeideas,translatethemintoconcreteactionplansandproduceresults.Whentheysucceed,


Notes


theyareable tokeepeveryone ingoodhumour– includingshareholders,employeesandthegeneral public.

!Caution Managers are hailed as ‘invincible corporate heroes’ and even treated as prizedpossessions of a country. When they fail, they destroy the scarce corporate resourcesandmakeeveryonecry.Theoutcomesofmanagerialactions,thus,aregoingtobedeep,profound and decisive.

Togetaheadintheraceespeciallyinacomplex,dynamicandever-changingworld,managersneedtodeveloptheircapabilitiesthatgobeyondthoserequiredbythecurrentjob.

Executiveormanagementdevelopmentisaplanned,systematicandcontinuousprocessoflearningandgrowthbywhichmanagersdeveloptheirconceptualandanalyticalabilitiestomanage.

It is the resultofnotonlyparticipation in formalcoursesof instructionbutalsoofactual jobexperience. It isprimarilyconcernedwith improving theperformanceofmanagersbygivingthemstimulatingopportunitiesforgrowthanddevelopment.

Executive Development has become indispensable to modern organisations in view of thefollowing reasons:

Foranybusiness,ExecutiveDevelopmentisaninvaluableinvestmentinthelongrun.Itzz

helpsmanagerstoacquireKnowledge,SkillsandAbilities(KSAs)requiredtograpplewithcomplexchangesinenvironment,technologyandprocessesquitesuccessfully.Theycanhaveabettergripovermarket forcesandgetaheadofothers in therace inaconfidentmanner.

Developmentaleffortshelpexecutivestorealisetheirowncareergoalsandaspirationsinzz

aplannedway.

Executivescanshowsuperiorperformanceonthejob.Byhandlingvariedjobsofincreasingzz

difficultyandscope,theybecomemoreuseful,versatileandproductive.Therichexperiencethattheygainoveraperiodoftimewouldhelpthemstepintotheshoesoftheirsuperiorseasily.

ExecutiveDevelopmentprogrammeshelpmanagers tobroader theiroutlook, look intozz

various problems dispassionately, examine the consequences carefully, appreciate howotherswould react to aparticular solution anddischarge their responsibilities taking aholistic view of the entire organisation.

The special courses, projects, committee assignments, job rotation and other exerciseszz

helpmanagers to have a feel of how to discharge their dutieswithout rubbingpeople(subordinates,peers,superiors,competitors,customers,etc.)thewrongway.

The following are the important steps in the organisation of a management developmentprogramme:

a. Analysis of organisational development needs:Afterdeciding to launchamanagementdevelopment programme, a close and critical examination of the present and futuredevelopmentneedsoftheorganisationhastobemade.Weshouldknowhowmanyandwhattypeofmanagersarerequiredtomeetthepresentandfuturerequirements.

A comparison of the already existing talents with those that are required tomeet theprojectedneedswillhelpthetopmanagementtotakeapolicydecisionastowhetheritwishestofillthosepositionsfromwithintheorganisationorfromoutsidesources.

b. Appraisal of present management talents:Inordertomaketheabovesuggestedcomparison,aqualitativeassessmentoftheexistingexecutivetalentsshouldbemadeandanestimate


Notes


oftheirpotentialfordevelopmentshouldbeaddedtothat.Onlythencanitbecomparedwiththeprojectedrequiredtalents.

c. Inventory of management manpower:Thisispreparedtohaveacompletesetofinformationabouteachexecutiveineachposition.Foreachmemberoftheexecutiveteam,acardisprepared listing suchdata asname, age, lengthof service, education,workexperience,healthrecord,psychologicaltestresultsandperformanceappraisaldata,etc.Theselectionofindividualsforamanagementdevelopmentprogrammeismadeonthebasisofthekindofbackgroundtheypossess.

Suchinformation,whenanalysed,disclosesthestrengthsaswellasweaknessesordeficienciesofmanagersincertainfunctionsrelatingtothefutureneedsoftheorganisations.

d. Planning of individual development programmes:Guidedbytheresultsoftheperformanceappraisalthatindicatesthestrengthsandweaknessesofeachoftheexecutives,thisactivityofplanningofindividualdevelopmentprogrammecanbeperformed.

e. Establishment of development programmes:ItisthedutyoftheHRdepartmenttoestablishthedevelopmentalopportunities.TheHRdepartmenthastoidentifytheexistinglevelofskills,knowledge,etc.,ofvariousexecutivesandcomparethemwiththeirrespectivejobrequirements.Thus, it identifiesdevelopmentalneedsandrequirementsandestablishesspecificdevelopmentprogrammes,likeleadershipcourses,managementgames,sensitivitytraining,etc.

f. Evaluation of results:Executivedevelopmentprogrammesconsumealotoftime,moneyandeffort.Itis,therefore,essentialtofindoutwhethertheprogrammeshavebeenontrackornot.Programmeevaluationwillcovertheareaswherechangesneedtobeundertakensothattheparticipantswouldfindthesametoberelevantandusefulforenrichingtheirknowledge and experience in future. Opinion surveys, tests, interviews, observationof traineereactions, ratingof thevariouscomponentsof training,etc., couldbeusedtoevaluateexecutivedevelopmentprogrammes.

Self Assessment


1. Training objectives should be expressed in:

(a) employeebehaviours

(b) managementdesires

(c) needsassessment

(d) subjectivejudgement

(e) employeereactions

2. Training evaluation criteria include all but not:

(a) reactions

(b) learning

(c) behaviour

(d) relevance

(e) results


Notes


3. Technologicalobsolescenceofengineerscanbeeasilypreventedby:

(a) behaviourmodelling

(b) lectures

(c) coaching

(d) laboratorytraining

(e) on-the-job training

4. Development

(a) isshortterminnature

(b) focusesontheemployee’scurrentjob

(c) isaluxurymostorganisationsavoid

(d) aimsatimprovingthetotalpersonalityofamanager

(e) isaninformalactivity

5. Theadvantagesofthelecturemethodinclude:

(a) economy

(b) feedback

(c) participation

(d) transference

(e) all of the above

6. ProgrammedInstructionislowon:

(a) feedback

(b) relevance

(c) participation

(d) transference

(e) repetition

7. Roleplayingisoftenusedto:

(a) modelbehaviour

(b) change results

(c) learnskills

(d) change attitudes

(e) offerfeedback

8. BusinessGames

(a) improvefire-fightingskills

(b) promotecooperationamongparticipants

(c) compresstime

(d) areeasytodevelop

(e) encouragecreativity


Notes


6.4.1 Methods of Executive Development

Technique Suitability

Job Rotation Todevelopdiversifiedskillsandbroadentheoutlookofanexecutive

Understudy Toaidsuccessionplanningbydevelopingtheskillsofjuniorsaccordingtoa pre-set plan

Multiple Management

Toassistmanagersinexpandingtheiroutlookandknowledgeinvariousfunctional areas

CaseStudy Todevelopanalytical,reasoningandproblem-solvingskills

RolePlaying Totranslatetheoreticalknowledgeintoactionplansandtopromotegoodhumanrelationsskillsamongtrainees

Behaviour Modelling Toteachinter-personnelandcognitiveskills

In-basket Topromotesituationaljudgementandsocialsensitivity

BusinessGames To develop smart thinking, quick reactions, initiative, organising andleadershipskills

SensitivityTraining Topromoteselfawarenessanditsimpactonothers

Conference To improve and expandknowledge, attitudes anddevelop interpersonalskills

Lecture To impartconceptualknowledge toa largeaudiencewithinashortspanoftime.

Table 6.5: Methods of Executive Development

Task Visithttp://www.coachu.com/.Thisisanorganisationthatspecialisesintrainingcoachesasmanagers.YoualsocanlookatInternationalCoachingFederationathttp://www.coachfederation.com/. Based on what you have found, answer the followingquestions.

1. Wouldyouliketobeledbya“coach”astheseorganisationsdefineit?Whatwouldbesomeadvantagesanddisadvantagesofviewingleadersthisway?

2. Basedonyourleadershipstyle,wouldyoumakeagoodcoach?Givereasons.

3. Discussasituationinwhichacoachingapproachtoleadershipwouldbeparticularlyeffective.Whatwouldbeasituationwhereacoachingapproachwouldseemtobeineffective?


Notes


Self Assessment


9. A little training is a dangerous thing.

10. Themethodsandprocessesoftrainingshouldnotberelateddirectlytotheneeds

11. Well-trainedemployeesneedlessguidanceandcontrol.

12. Learningisatransformationthatoccurswithinashortperiodoftime.

13. Developmentisalong-termeducationalprocess.

14. Trainedemployeesarealiabilitytoanorganisation.

15. Transferofexecutivesfromonelocationtoanotheriscalledjobrotation.

16. Training objectives should be set in terms of changes needed in behaviour andperformance.

17. Developmentisshortterminnature.

18. Roleplayingisoftenusedtolearnskills.

19. BehaviourModellingoffersreinforcementtothetrainee.

20. On-the-jobtrainingshouldberelativelyunstructured.

21. Developmentfocusesmoreontheemployee’spersonalgrowth.

22. Jobrotationcanbeeitherhorizontalorvertical.

6.5 Evaluating the Training Effort

The process of training evaluation has been defined as, “any attempt to obtain informationon the effects of trainingperformance and to assess the value of training in the light of thatinformation.”

Design of Evaluation Process

Evaluation process should not be treated as a separate process but should be carried out simultaneouslywiththetrainingprogramme.Thedesignshoulddependonnumberoffactorsincluding the type of training and development programme. The guiding principle behindtheevaluationprocessmustbe that it shouldnotonlymeet theobjectivesof the trainingbutsubsequentlytheyshouldbeimplementedinaneffectivemanner.


Notes


Training need analysis

Pre-course testing or assessment of knowledge,

skill, attitudes

Interim validation

End of programme validation and reaction

review

Line-manager post-course debriefing

Long-term follow-up evaluation

Learner action planning

Assessment and report on achievement of objectives

Design for evaluation process

Line-manager pre-course briefing

End of programme testing

Medium-term follow-up evaluation

Figure 6.2: The Evaluation Cycle

Methods of Evaluation

1. Questionnaire:Comprehensivequestionnairescouldbeusedtoobtainopinions,reactions,views of trainees.

2. Start-of-course assessment: Either replacingpre-programmeassessmentsor confirmingtheseinmoretraining-specificforms.

3. Tests: Standard tests could be used to find outwhether trainees have learnt anythingduringandafterthetrainingprogramme.Pre-testingorpre-knowledgemeasuresofthelearners’existingskillsandknowledge.

4. Interviews:Interviewscouldbeconductedtofindouttheusefulnessoftrainingofferedtooperatives.

5. Daily or interim evaluation approaches:Whichbeconsideredifthelearningprogrammelastsmorethanadayorso,butwillbenecessaryifitlastsforaweekormore.

6. Studies: Comprehensive studies could be carried out to eliciting the opinions andjudgementsoftrainers,superiors,peers,groupsaboutthetraining.


Notes


7. Human Resource Factors: It is evaluated on the basis of employee satisfaction, whichis further examined on the basis of absenteeism, turnover ratio, accidents, grievances,discharge,dismissalsetc.

8. Cost Benefits Analysis:Thecostoftraining(costofhiringtrainers,toolstolearn,trainingcenters,wastageetc.)couldbecomparedwithitsvalue(intermsofreducedlearningtime,improvedlearning,superiorperformance)inordertoevaluateatrainingprogramme.

9. End of programme evaluation: Reaction,arrangementformediumorlongterm-evaluation,eitherbycorrespondenceorvisiting.

10. Feedback:Aftertheevaluation,thesituationshouldbeexaminedtoidentifytheprobablecauseforgapsinperformance.Thetrainingevaluatorshouldfollowitupsincerelysoastoensureeffectiveimplementationofthefeedbackreportateverystage.

Self Assessment

Fillintheblanks:

23. Thebasicpurposeofexecutive................programmesistoimprovemanagerialperformancebyimpartingknowledge,changingattitudesorincreasingskills.

24. Managementdevelopment isa .............., ................and ................processof learningandgrowth.

25. Amanagercanachieveresultsonlywhenheisabletoput..............ontherighttrack.

26. Simulationsthatrepresentactualbusinesssituationsareknownas.................

27. Byhandlingvariedjobsofincreasingdifficultyandscope,executivesbecomemoreuseful,................ and ...................

28. An................isapersonwhoisintrainingtoassumeatafuturetime,thefullresponsibilityof the position.

Case Study Sydenham Samsung Automotives

SydenhamSamsungAutomotives is a joint-venture company setupwith technicalcollaboration from Samsung, South Korea. SSA manufactures aluminium alloywheelrimsforautomobiles.Sincethereisagreatdemandforthisproductfromthe

automobilemanufacturersofdevelopedcountries,includingKoreaandJapan,thejoint-ventureSSAhad setup itsmanufacturingunit in theExportPromotionZone (EPZ)atVisakhapatnamPortcity.EPZextendsmanyattractivetermsfortheexportersintheZone,includingexemptionfromtheapplicabilityoflabourlawstotheunitswithinEPZ.

SSA selected brilliant engineers from premier engineering institutes and sent them forhands-ontrainingtoKoreaforsixmonths.Ontheirreturn,theseengineerssystematicallytrainedon-the-shopfloorworkforce inallaspectsofproductmanufacturing.Asthe jobswere of a technical nature, SSA recruited boys from Industrial Training Institutes andPolytechnic Institutes indifferentcrafts.Thisyoungworkforce,whoseaverageagewas26 years,were dynamic and enthusiastically performed the jobs andweremeeting theproductiontargets.SSAhasalsotakencareoftheneedsoftheworkforceandprovidedsubsidisedcanteen,busesto takeworkersfromtowntoworkplaceandback,andotherwelfaremeasures.

Contd…


Notes


Thiscongenialenvironmentcontinuedforthreeyearsbutlatertheworkers,attheinstanceofoutsideleadership,startedatradeunion.SSAwasupsetwiththesedevelopmentsand,tosomeextent,wasfirmindealingwiththeunionisedworkers,Thematterprecipitatedleading to a 16-day strike. However, at the intervention of the Conciliation Officer, asettlement was reached between the parties which gave higher wages and benefits totheworkersandSSAcouldeliminatesomerestrictivepracticesthathadsurfacedoflate.Normalcywasrestored.

SSAhasdecidedtoeducatetheworkersaboutthevirtuesofdisciplinedworkperformance.Accordingly,itapproachedaprofessionaltrainertotakeuptheassignment.

Questions

1. Ifyouwerethetrainer,howwouldyoudesignthetrainingprogramme?

2. Whatobjectiveswouldyoukeepinmindinconductingsuchatrainingprogramme?

3. Can employee involvement and work commitment be achieved through such atrainingprogramme?Giveyourreasons.

6.6 Summary

Atrainingneedisthegapbetweentheknowledge,skillsandattitudesalreadypossessedzz

bythetrainee.

Iftrainingistoberelevantandcost-effective,itmustmeettheneedsoftheorganisationinzz

termsofitstargetpopulation.

Therearethreemajorareasinwhichstaffdonotmeetthejobrequirements:zz

whenstaffperformanceintheirpresentpositiondoesnotmatchuptotherequiredz�

standards,

whentherequirementofthejobchangesduetothechangingcircumstances,andz�

whenthepresentjobceasestoexistorthejobholderchangesjobs,thereforecreatingz�

new gap in the new job.

There are various methods by which the trainer imparts knowledge and changeszz

attitudes.

Training programmes for sub-staff cadres need to be participant-oriented with morezz

practicalmethodologiesand theprogrammeshouldbe in theregional languages in thecase of substaff.

In the case of officers, experience-sharing could be the main plank with more activezz

participant-orientedinputslikemanagementgames.

Alltrainingprogrammeshavecertaincorefeatures,butwilldifferinemphasisdependingzz

onthepositionofthetraineeinthehierarchy,thenumberoftraineesandsoon.

Muchoftheinformationneededtoplananeffectivetrainingprogrammewillcomefromzz

jobanalysis.Learningbydoingisbest.

Sowhereverpossiblemaketheprogrammeactiveandjob-related,keeptraineesoccupiedzz

bylearningatleastonethingeveryday.

Thetrainerwillneedtopreparethoroughly:thewrittenworknecessaryforpresentingthezz

session,thematerialandequipmenttobeusedduringdemonstrationandpracticeincludingvisualaids,andanyinstructionalmaterialtobackupthesession,suchashandouts.


Notes


Managementdevelopmentistheprocessinwhichexecutivesacquirenotonlyskillsandzz

competencies in their present jobs but also capabilities for future managerial tasks ofincreasingdifficultyandscope.

Managementdevelopment,incontrasttoemployeetraining,ismorefuture-orientedandzz

concerned with education.

6.7 Keywords

Behaviour modelling:Anapproachthatdemonstratesdesiredbehaviourandgivestraineesthechancetopracticeandrole-playthosebehavioursandreceivefeedback.

Case Study:Casestudiesareproblem-solvingactivities,which test theanalytical skillsof thelearner with the supervision and guidance of the trainer.

Demonstrations:Itisapracticalmethod,wheretheemployeegetstheopportunitytoseeandactualusetheequipmentsneededandcarriedoutinnormalworking.

Discussions:Itisaverycommonandeconomicaltechnique.Theyinvolvethelearners,whodonotremainapassivelearner.

Employee Development: Akindoffutureorientedtraining,focusingontheindividualgrowthoftheemployee.

Executive Development:Theprocessinwhichexecutivesacquirenotonlyskillsandcompetenceintheirpresentjobsbutalsocapabilitiesforfuturemanagerialtasksofincreasingdifficultyandscope.

Management Development:Managementdevelopmentistheprocessinwhichexecutivesacquirenotonlyskillsandcompetenciesintheirpresentjobsbutalsocapabilitiesforfuturemanagerialtasksofincreasingdifficultyandscope.

Role Plays:Itisthemostwidelyusedgrouptrainingmethod.Thelearnersareprovidedwiththeopportunitytopracticeinthesimulatedsituationtheconditionsandsituationswhicharesimilarto the real life.

Training: Alearningprocessdesignedtoachievearelativelypermanentchangeinanindividualthatwillimprovetheabilitytoperformonthejob.

Trainer Presentations: In their basic form, they are ‘tell’ events, traditionally described as‘lectures’.Thetrainerissupposedtospeaktothepassiveaudience,whoisexpectedtonotethelectureanddocumentthem.

Understudy: A development method whereby potential managers are given the chance totemporarilyrelieveanexperiencedmanagerofpartofhisjobandactashissubstituteduringtheperiod,givinghimvitalinsightsintotheoveralljobthatwouldmakehimtheautomaticchoicein the succession process.


1. Howdoyouidentifythetrainingneedsofanorganisation?

2. Whatprecautionsshouldonetakeforconductingatrainingprogramme?

3. Howshouldatrainerplanforatrainingprogramme?

4. Whatarethevariousmethodsavailablefortraining?

5. Whyisevaluationofatrainingprogrammenecessary,andhowisitdone?

6. Whatdoyoumeanbyexecutivedevelopment?


Notes


7. Discussthemethodsofexecutivedevelopment.

8. HumanResourceDevelopmentisnothingbutlookingatthedevelopmentofmanpowerofanorganisationinthelightofitsrequirements.Doyouragree?Givereasonsforyourviews.

9. Statetheimportanceofexecutivedevelopment,keepingtheIndianconditionsinmind.

10. Explaintheprincipalexecutivetrainingmethodsandsuggestasuitabletrainingpackageformiddlelevelexecutivesinalargeorganisation.

11. Discussthemeritsanddemeritsofcasestudyasamethodofexecutivedevelopment.

12. Differentiate between training and development. Why is executive developmentnecessary?

13. Explainthemeritsanddemeritsofcasestudyasamethodofdevelopingexecutives?

14. Describetheprosandconsoffivemanagementdevelopmentmethods.


1. (d) 2. (a)

3. (b) 4. (d)

5. (a) 6. (b)

7. (d) 8. (c)

9. True 10. False

11. True 12. False

13. True 14. False

15. False 16. True

17. False 18. False

19. True 20. False

21. True 22. True

23. development 24. planned,systematic,continuous

25. individuals 26. businessgames

27. versatile,productive 28. understudy








Notes





Online links http://en.wikipedia.org/wiki/Training_and_development

h t tp ://www.co lga t e . co . i n/app/Co lga t e/ IN/Corp/Caree r s/TrainingDevelopment.cvsp

http://www.businessballs.com/traindev.htm

http://managementhelp.org/training/

Unit 7: Performance Management

Notes



CONTENTS

Objectives

Introduction

7.1 PerformanceAppraisal

7.1.1 Objectives of PA

7.2 PerformanceManagement

7.3 ComponentsofPerformanceManagement

7.3.1 Planning

7.3.2 Monitoring

7.3.3 Developing

7.3.4 Rating

7.3.5 Rewarding

7.4 PerformanceAppraisalMethods

7.4.1 Past-oriented Scale

7.4.2 Future-oriented Appraisal

7.5 Potential Appraisal

7.6 PerformanceCounseling

7.6.1 Characteristics of Counseling

7.6.2 Counselling Functions

7.6.3 TypesofCounselling

7.7 CommonRatingErrors/Problems

7.8 CreatingtheTotalPerformanceManagementProcess

7.9 Summary

7.10 Keywords



Objectives


Definethetermperformancemanagementandpotentialappraisalzz

Discussthecomponentsofperformancemanagement,zz

Statetheperformanceappraisalmethodszz

Explaintheconceptofperformancecounselingzz

Understandthecommonratingerrorszz


Notes


Introduction

Since organizations exist to achieve goals, the degree of success that individual employeeshave inreachingtheir individualgoalshelps indeterminingorganizationaleffectiveness.Theassessmentofhowsuccessfulemployeeshavebeenatmeetingtheirindividualgoals,therefore,becomesacriticalpartofHRM.Thisleadstothetopicofperformanceappraisal.

Therearebasicallythreepurposestowhichperformanceappraisalcanbeput.First, it can be usedasabasisforrewardallocations.Decisionsastowhogetssalaryincreases,promotions,andotherrewardsaredeterminedbytheirperformanceevaluation.Second,theseappraisalscanbeusedforidentifyingareaswheredevelopmenteffortsareneeded.Finally,performanceappraisalcanbeusedasacriterionagainstwhichselectiondevicesanddevelopmentprogrammersarevalidated.Theremustbesomestandardofsatisfactoryperformance.Thedevelopmentofavalid,reliableandbias-freeperformanceappraisalsystemcanestablishsuchstandards.

Did u know?Theperformancemanagementsystemsofsuccessfulorganizationsisdesignedto enable employees to contribute at optimum levels through a continual process thatincludesamongothers,goalsetting,measurement,feedbackandrewards.

7.1 Performance Appraisal

PerformanceAppraisalisthesystematicevaluationoftheindividualwithrespecttohisorherperformanceonthejobandhisorherpotentialfordevelopment.

Major comprehensive definition: Performance Appraisal is a formal structured system ofmeasuringandevaluatinganemployee’sjobrelatedbehaviorsandoutcomestodiscoverhow&whytheemployeeispresentlyperformingonthejobandhowtheemployeecanperformmoreeffectivelyinthefuturesothattheemployee,organizationandsocietyallbenefit.

7.1.1 Objectives of PA

1. Compensation Decision: Itcanserveasabasisforpayraises.Thisapproachtocompensationisattheheartoftheideathatraisesshouldbegivenformeritratherthanforseniority.

2. Promotion Decision:Itcanserveasaguideforjobchangeorpromotion.

3. Training and Development Programme: PAcaninformemployeesabouttheirprogressandtellthemwhatskillstheyneedtodeveloptobecomeeligibleforpayraisesorpromotionsor both.

4. Feedback:Itcantellanemployeewhathecandotoimprovehispresentperformanceandgouptheorganizationalladder.

5. Personal development: It can help reveal the causes of good and poor employeeperformance.

Self Assessment


1. Thebasisforperformancestandardsis:

(a) Managers

(b) HR plans

(c) Employees


Notes


(d) Compensationplans

(e) Jobanalysis.

2. Performanceappraisalsserveasbuildingblocksof:

(a) Recruiting

(b) Career planning

(c) Manpower planning

(d) Selecting

(e) Jobanalysis.

7.2 Performance Management

Performancemanagementisthesystematicprocessbywhichanagencyinvolvesitsemployees,as individuals and members of a group, in improving organizational effectiveness in theaccomplishmentofagencymissionandgoals.

Employeeperformancemanagementincludes:

1. Planningworkandsettingexpectations,

2. Continuallymonitoringperformance,

3. Developingthecapacitytoperform,

4. Periodicallyratingperformanceinasummaryfashion,and

5. Rewardinggoodperformance.

7.3 Components of Performance Management

7.3.1 Planning

Inaneffectiveorganization,workisplannedoutinadvance.Planningmeanssettingperformanceexpectations and goals for groups and individuals to channel their efforts toward achieving organizationalobjectives.Gettingemployees involved in theplanningprocesswillhelp themunderstandthegoalsoftheorganization,whatneedstobedone,whyitneedstobedone,andhow well it should be done.

The regulatory requirements for planning employees’ performance include establishing theelements and standards of their performance appraisal plans. Performance elements andstandardsshouldbemeasurable,understandable,verifiable,equitable,andachievable.Throughcritical elements, employees are held accountable as individuals for work assignments orresponsibilities.Employeeperformanceplansshouldbeflexiblesothattheycanbeadjustedforchangingprogramobjectivesandworkrequirements.Whenusedeffectively,theseplanscanbebeneficialworkingdocumentsthatarediscussedoften,andnotmerelypaperworkthatisfiledinadrawerandseenonlywhenratingsofrecordarerequired.

7.3.2 Monitoring

In an effectiveorganization, assignments andprojects aremonitored continually.Monitoringwellmeansconsistentlymeasuringperformanceandprovidingongoingfeedbacktoemployeesandworkgroupsontheirprogresstowardreachingtheirgoals.


Notes


Regulatoryrequirementsformonitoringperformanceincludeconductingprogressreviewswithemployeeswheretheirperformanceiscomparedagainsttheirelementsandstandards.Ongoingmonitoringprovidestheopportunitytocheckhowwellemployeesaremeetingpredeterminedstandards and tomake changes to unrealistic or problematic standards. And bymonitoringcontinually,unacceptableperformancecanbeidentifiedatanytimeduringtheappraisalperiodandassistanceprovidedtoaddresssuchperformanceratherthanwaituntiltheendoftheperiodwhensummaryratinglevelsareassigned.

!Caution MBO requires the management to set specific, measurable goals with eachemployeeandthenperiodicallydiscussthelatter’sprogresstowardsthesegoals.

7.3.3 Developing

In an effective organization, employee developmental needs are evaluated and addressed.Developing in this instance means increasing the capacity to perform through training,giving assignments that introduce new skills or higher levels of responsibility, improvingwork processes, or other methods. Providing employees with training and developmentalopportunities encourages goodperformance, strengthens job-related skills and competencies,andhelpsemployeeskeepupwithchangesintheworkplace,suchastheintroductionofnewtechnology.

Carrying out the processes of performance management provides an excellent opportunityto identify developmental needs. During planning and monitoring of work, deficiencies inperformancebecomeevidentandcanbeaddressed.Areasforimprovinggoodperformancealsostandout,andactioncanbetakentohelpsuccessfulemployeesimproveevenfurther.

7.3.4 Rating

Fromtimetotime,organizationsfinditusefultosummarizeemployeeperformance.Thiscanbehelpfulforlookingatandcomparingperformanceovertimeoramongvariousemployees.Organizationsneedtoknowwhotheirbestperformersare.

Within the context of formal performance appraisal requirements, rating means evaluatingemployeeorgroupperformanceagainsttheelementsandstandardsinanemployee’sperformanceplanandassigningasummaryratingofrecord.Theratingofrecordisassignedaccordingtoprocedures included in theorganization’s appraisalprogram. It is basedonworkperformedduring an entire appraisal period. The rating of record has a bearing on various other personnel actions,suchasgrantingwithin-gradepayincreasesanddeterminingadditionalretentionservicecredit in a reduction in force.

Althoughgroupperformancemayhaveanimpactonanemployee’ssummaryrating,aratingofrecordisassignedonlytoanindividual,nottoagroup.

7.3.5 Rewarding

Inaneffectiveorganization,rewardsareusedwell.Rewardingmeansrecognizingemployees,individually and as members of groups, for their performance and acknowledging theircontributions to the agency’s mission. A basic principle of effective management is that allbehavioriscontrolledbyitsconsequences.Thoseconsequencescanandshouldbebothformalandinformalandbothpositiveandnegative.

Good performance is recognized without waiting for nominations for formal awards to besolicited.Recognitionisanongoing,naturalpartofday-to-dayexperience.Alotoftheactionsthatrewardgoodperformance—likesaying“Thankyou”—don’trequireaspecificregulatory


Notes


authority.Nonetheless, awards regulationsprovideabroad rangeof forms thatmore formalrewardscantake,suchascash,timeoff,andmanynonmonetaryitems.Theregulationsalsocoveravarietyofcontributionsthatcanberewarded,fromsuggestionstogroupaccomplishments.

Notes Effective Performance Management

Goals are set andwork isplanned routinely.Progress toward thosegoals ismeasuredand employeesget feedback.High standards are set, but care is also taken todeveloptheskillsneededtoreachthem.Formalandinformalrewardsareusedtorecognizethebehaviorandresultsthataccomplishthemission.Allfivecomponentprocessesworkingtogetherandsupportingeachotherachievenatural,effectiveperformancemanagement.Ineffectiveorganizations,managersandemployeeshavebeenpracticinggoodperformancemanagementnaturallyalltheirlives,executingeachkeycomponentprocesswell.

7.4 Performance Appraisal Methods

Thevariousperformanceappraisalmethodsarediscussedhereontwostandards:

1. Past-oriented Scale

2. Future-oriented Scale

Let us explain each of the above in detail.

7.4.1 Past-oriented Scale

1. Rating scale: The typical rating scale system consists of several numerical scales, eachrepresentingajob-relatedperformancecriterionsuchasdependability,initiative,output,attendance,attitude,cooperationetc.,eachscalerangesfromexcellenttopoor.Thenumberofpointsattachedtothescalemaybelinkedtosalaryincrease,wherebysomanypointsequalariseofsomepercentage.

Nearlyalltypeofjobcanbeevaluatedandlargenumberofemployeescanbeevaluatedin a very short time. Disadvantage includes the rater’s biases to influence evaluation.Furthermore,numericalscoringgivesanillusionofprecisionthatisreallyunfounded.

2. Checklists:Under thismethod, a checklist of statements on statements on the traits oftheemployeeandhisorherjobispreparedintwocolumnsi.e. ‘YES’columnand‘NO’column.Allthattherateristodoistotickthe‘YES’iftheanswerispositiveandtick‘NO’iftheansweris‘NO’.TheHRdept.givespointforevery“YES’whenpointsareallottedthetechniquebecomesaweightedchecklist.

The advantages are economy, ease of administration, limited training of rater &standardization.ThedisadvantageincludesimproperweightsbytheHRdepartment.

3. Forced choice method:Theraterisgivenaseriesofstatementabouttheemployeethesearearrangedintheblocksoftwoormore,andtheraterindicateswhichstatementismostorleastdescriptiveoftheemployee.Forexample

(a) Learnsfast---------------------------------------workshard.

(b) Absentoften------------------------------------othersusuallytardy.

TheHRdepartmentdoesactualassessment.Theadvantageistheabsenceofpersonalbiasinrating.Disadvantageisthatthestatementmaynotbeproperlyframed.


Notes


4. Critical Incident method:Itfocusesoncertaincriticalbehavioursofanemployeethatmakeallthedifferencebetweeneffectiveandnon-effectiveperformanceofajob.Suchincidentsarerecordedbythesuperiorsasandwhentheyoccur.

One of the advantages of this is that the evaluation is based on actual job-behaviour. It also increasesthechancethatthesubordinatewillimprovebecausetheylearnmorepreciselywhat is expected of them. As an disadvantage, negative incidents are generally morenoticeable than positive ones.

5. Behaviorally anchored rating scales: In this the scale represent a range of descriptive statementsofbehaviourvaryingfromtheleasttothemosteffective.Aratermustindicatewhich behaviour on each scale best describes an employee’s performance. BARS thefollowing feature:

(a) Areasofperformancetobeevaluatedareidentifiedanddefinedbythepeoplewhowill use the scales.

(b) Thescalesareanchoredbydescriptionofactualjobbehaviorthatsupervisorsagree,representspecificlevelofperformance.

(c) AlldimensionsofperformancetobeevaluatedarebasedonobservablebehavioursandarerelevanttothejobbeingevaluatedsinceBARSaretailoredmade.

(d) Sincetheraterswhowillactuallyusethescaleareactivelyinvolvedinthedevelopmentprocess,theyaremorelikelytobecommittedtothefinalproduct.

Unfortunatelythisalsosuffersfromdistortionsinherentinmostratingtechniques.

6. Field review method:This isanappraisalbysomeoneoutside theassessee’sowndept.,usuallysomeonefromcorporateofficeorHRdept..Twodisadvantageofthisare:

(a) Anoutsiderisnotfamiliarwithconditionsinanemployee’sworkenvironment.

(b) Hedoesnothaveanopportunity toobserveemployeebehaviourofperformanceoveraperiodoftime.

7. Performance test:Withalimitednumberofjobs,employeeassessmentmaybebaseduponatestofknowledgeandskills.Thetestmaybepaper&penciloranactualdemonstrationofskillsthetestmustbereliable&validatedtobeuseful.Practicallyitmaysufferifthecostsoftestdevelopmentoradministrationarehigh.

8. Annual confidential report:ACRismostlyusedingovernmentdepttsexampleITI,militaryorganizations,etc.,ithas14itemsnamely-attendance,self-expression,abilitytoworkwithothers, leadership, initiative, technical ability, ability to reason,name, to a few.Twelveofthesearefilledonafour-pointgradescale(excellent,good,fair,poor).Justificationisrequiredforoutstandingorpoorrating.Overallratingonafive-pointscalewasseparatelygiven(Outstanding,Verygood,Good,Average,Poor).Recommendationforperformancewas also given.

Thissystemishighlysecretandconfidential.Ratingsareeasilymanipulatedbecausetheevaluationwaslinkedtopromotion.

9. Cost accounting approach:Thismethodevaluatesperformancefromthemonetaryreturnstheemployeeyieldstohisorherorganization.Performanceoftheemployeeisevaluatedbasedontheestablishedrelationshipbetweenthecostandthebenefit.

10. Comparative evaluation approach:Theseareacollectionofdifferentmethodsthatcompareoneworker’sperformancewith thatofhis/herco-workers.Theyareuseful indecidingmerit-payincreases,promotionsandorganizationalrewards.Theusualcomparativeformsarerankingmethodandthepairedcomparisonmethod.


Notes


7.4.2 Future-oriented Appraisal

Management by Objective

ItwasPeterFDruckergave theconceptofMBOwayback in1954whenhis ‘ThePracticeofManagement’wasfirstpublished.Therearefoursteps:

Insomeorganizations,superiorandsubordinatesworktogethertoestablishgoals.Thesezz

goalscanthenbyusedtoevaluateemployeeperformance.

Itinvolvessettingtheperformancestandardforthesubordinatesinapreviouslyarrangedzz

timeperiod.Assubordinatesperform,theyknowfairlywellwhatthereistodo,whathasbeendone,andwhatremainstobedone.

Theactuallevelofgoalattainmentiscomparedwiththegoalsagreedupon.Thisstephelpszz

determinepossibletrainingneeds.

It involvesestablishingnewgoalsandpossibly,newstrategies forgoalsnotpreviouslyzz

attained. The process is repeated.

Thedisadvantageisthatitisnotapplicabletoalljobsinallorganizations.Jobswithlittleornoflexibility,suchasassembly-linework,arenotcompatiblewithMBO.

Psychological Appraisal

The appraisal normally consists of in-depth interviews, psychological tests, discussionswithsupervisorsandareviewofotherevaluations.Thepsychologistthenwritesaboutemployee’sintellectual, emotional,motivational andother- related characteristics that suggest individualpotentialandmaypredictfutureperformance.Sincethequalityoftheappraisaldependslargelyontheskillsofthepsychologists,someemployeesobjecttothistypeofevaluation,especiallyifcross-cultural differences exists.

Assessment Centers

ThismethodofappraisingwasfirstappliedinGermanArmyin1930.Infactitisasystemororganization,whereassessmentofseveralindividualsisdonebyvariousexpertsusingvarioustechniques. These techniques include in-basket, role-playing, case studies, and simulationexercise,transactionalanalysis.

In this individualarebrought together tospend twoor threedaysworkingonan individualorgroupassignment similar to theones theywouldbehandlingwhenpromoted.Observersranktheperformanceofeachandeveryparticipantinorderofmerit.Allassessesgetanequalopportunitytoshowtheirtalentsandcapabilitiesandsecurepromotionbasedonmerit.

360-degree Feedback

Wheremultipleratersareinvolvedinevaluatingperformance,thetechniqueiscalled360-degreeappraisal.The360-degreetechniqueisunderstoodassystematiccollectionofperformancedataonanindividualorgroup,derivedfromanumberofstakeholdersincludeimmediatesupervisors,teammembers,customers,peers,andself.

Forone’sdevelopment,multi-sourcefeedbackishighlyuseful.Itenablesanemployeetocomparehisorherperceptionsaboutselfwithperceptionsofothers.Thetechniqueisparticularlyhelpfulinassessingsoftskillspossessedbyemployees.Bydesign,the360-degreeappraisaliseffectiveinidentifyingandmeasuringinterpersonalskills,customersatisfaction,andteam-buildingskills.


Notes


Ithasnumberofdrawbacks.Receiving feedback fromonperformance frommultiplesourcescanbe intimidating. It isessential that theorganizationcreateanon-threateningenvironmentby emphasizing the positive impact of the technique on an employee’s performance anddevelopment..Ittakesalongtimeonselectingtherater,designingquestionnairesandanalyzingthe data.

7.5 Potential Appraisal

Inmost Indianorganisations,peopleearnpromotionson thebasisof theirpastperformance.Thepastperformanceisconsideredagoodindicatoroffuturejobsuccess.Thiscouldbetrue,ifthejobtobeperformedbythepromoteeissimilar.However,inactualpractice,therolesthatapersonplayedinthepastmaynotbethesameastheone(s)heisexpectedtoplayifheisassignedadifferentjobafterhistransferorpromotiontoanewposition.Pastperformance,therefore,maynotbeagoodindicatorofthesuitabilityforahigherrole.

To overcome this inadequacy, organisations must think of a new system called potentialappraisal.Potentialtypicallyrepresentslatentqualities(suchasabilitytoforeseeopportunitiesandtheirimpactoncurrentdecisions,abilitytoidentifyresourcegaps,abilitytoperformtasksinatoughsetting,abilitytofunctionindiversesettingswithconfidence,abilitytoseethebigpictureclearly;displayingahighdegreeofpersonalandintellectual integrityatall timesetc)exhibitedbyanindividualwhileperformingvarioustasks/jobs(Pattanayak2008137-140).Theobjectiveofpotentialappraisalistoidentifythepotentialofagivenemployeetooccupyhigherpositionsintheorganisationalhierarchyandundertakehigherresponsibilities(Pareek,p.141).

Potentialappraisalsarerequiredto:

Informemployeesabouttheirfutureprospects;zz

Helptheorganisationchalkoutasuitablesuccessionplan;zz

Updatetrainingeffortsfromtimetotime;zz

Adviseemployeesaboutwhattheymustdotoimprovetheircareerprospects.zz

Steps to be followed while Introducing a Good Potential Appraisal System

The following are some of the steps required to be followed while introducing a potentialappraisalsystem:

Role Descriptions: zz Organisationalrolesandfunctionsmustbedefinedclearly.Tothisend,jobdescriptionsmustbepreparedforeachjob.

Qualities needed to perform the roles: zz Basedonjobdescriptions,therolestobeplayedbypeoplemustbeprepared(i.e.,technical,managerialjobsandbehaviouraldimensions).

Rating mechanisms: zz Besides listing the functions and qualities, the potential appraisalsystemmustlistmechanismsofjudgingthequalitiesofemployeessuchas:

(i) Rating by others: The potential of a candidate could be rated by the immediatesupervisorwhoisacquaintedwiththecandidate’sworkinthepast,especiallyhistechnical capabilities.

(ii) Tests:Managerialandbehaviouraldimensionscanbemeasuredthroughabatteryofpsychologicaltests.

(iii) Games: Simulation games and exercises (assessment centre, business games, in-basket,roleplay,etc.)couldbeusedtouncoverthepotentialofacandidate.


Notes


(iv) Records:Performancerecordsandratingsofacandidateonhispreviousjobscouldbeexaminedcarefullyonvariousdimensionssuchasinitiative,creativity,risktakingability,etc.,whichmightplayakeyroleindischarginghisdutiesinanewjob.

Organising the system: zz Aftercoveringtheabovepreliminaries,theHRmanagermustsetupasystemthatwillallowtheintroductionoftheschemesmoothlyincorporatinganswerstosomecomplexquestionssuchas:

(i) Howmuchweightagetoaccordtomeritinplaceofseniorityinpromotions?

(ii) Howmuchweightagetoaccordtoeachoftheperformancedimensions–technical,managerial,behaviouralqualities?

(iii) Whatarethemechanismsofassessingtheindividualondifferentindicatorsofhispotential,andwithwhatdegreeofreliability?

Feedback: zz Thesystemmustprovideanopportunityforeveryemployeetoknowtheresultsofhisassessment.“Heshouldbehelpedtounderstandthequalitiesactuallyrequiredforperformingtheroleforwhichhethinkshehasthepotential,themechanismsusedbytheorganisationstoappraisehispotentialandtheresultsofsuchanappraisal”.

Self Assessment


3. Subjectivemeasuresinperformanceappraisalaremostdesirable.

4. Performanceappraisalscanreducebias.

5. Assessmentcentretechniqueiscostlyandtime-consuming.

6. AkeyaspectofperformancemanagementisPerformancemeasurement.

7. Employeesshouldnotbeinvolvedinperformanceplanning.

8. Jobdescriptionsmustbepreparedforeachgroupofjobs.

9. Managerial and behavioural dimensions cannot be measured due to their beingpsychologicalentities.

10. Therater’simmediatesupervisormustapprovetheratingsgivenbytherater.

11. Performance elements and standards shouldbemeasurable,understandable, verifiable,equitable,andachievable.

12. Inaneffectiveorganization,assignmentsandprojectsaremonitoredcontinuously.

7.6 Performance Counseling

Counsellingisthediscussionofaproblemwithanemployee,withthegeneralobjectiveofhelpingtheworkercopewithit.Thepurposeistohelpemployeeseitherresolveorcopewiththesituationsothattheycanbecomemoreeffectivepersons.Thebasictheorysupportingcounsellingisthatstressandpersonalproblemsarelikelytoaffectbothperformanceandanemployee’sgenerallifeadjustment;therefore,itisinthebestinterestsofallthoseconcerned(employer,employeeandcommunity)tohelptheemployeereturntofulleffectiveness.Mostcounselleesarehealthypeoplewhoare experiencing stress andneedhelp to return to emotionalwellness.Emotionsareanormalpartoflife,buttheycangetoutofcontrolandcauseworkerstodothingsthatareharmful to theirownbest interestsandtothoseof thefirm.Sometimesemployeesmayleavetheorganisationbecauseofatriflingconflictthatseemslargetothem,ortheymayunderminemoraleintheirdepartments.Managerswanttheirworkerstomaintainareasonableemotional


Notes


balanceandchanneltheiremotionsalongconstructivelinessothateveryonewillworktogethereffectively.Counsellingisausefultooltohelpaccomplishthisgoal.CounsellingprogrammesusuallyareadministeredbytheHRdepartment,whichusesvariouscombinationsofin-houseand external counselling services.

7.6.1 Characteristics of Counseling

CounsellinghasanumberofcharacteristicsthatmakeitausefulactivityintheHRdepartment.counselingrequirestwopeople;acounselorandacounselee.Itistheirexchangeofideasthatcreatesacounselingrelationship,andsocounselingisanactofcommunication.Counsellingcanimproveorganizationalperformancebecausetheemployeebecomesmorecooperative,worrieslessaboutpersonalproblems,ormakesprogress inotherways.Because itdealswithpeopleproblems,counselingalsohelpsorganisationstobemorehumanandconsiderate.Counsellingusuallyisperformedbybothprofessionallytrainedcounselorsandnonprofessionals.

Counsellingisstrictlyaconfidentialrelationship,andrecordsofitshouldberestrictedtopersonsdirectly involved in solving the counselingproblem.Thesepractices arenecessary toprotectemployeeprivacy.

Requirestwopeople,acounsellorandacounselee.zz

Isanactofcommunication.zz

Helpsemployeescope.zz

Reducesemployeeproblemsandemotionalupsets.zz

Improvesorganisationalperformance.zz

Helpsorganisationperformance.zz

Performedbybothprofessionalsandnon-professionals.zz

Involvesbothjobandpersonalproblems.zz

Isconfidentialandprivate.zz

7.6.2 Counselling Functions

Counsellingfunctionsaretheactivitiesperformedbycounselling,suchas:

Advice: zz Counsellorsoftengiveadvicetocounselleesinordertoguidethemtowarddesiredcourses of action.

Reassurance: zz The counselling experience often provides employees with reassurance,whichisconfidencethattheyarefollowingasuitablecourseofactionandhavethecouragetocarryitout.

Communication: zz Counselling is a communication experience. It initiates upwardcommunicationtomanagementandalsogivesthecounselloranopportunitytointerpretmanagementproblemsandgiveworkinsightstoemployees.

Release of emotional tension:zz Peopletendtogetemotionalrelieffromtheirtensionswhentheyhaveanopportunitytodiscusstheirproblemswithsomeoneelse.

Clarified thinking: zz Seriousdiscussionofproblemswithsomeoneelsehelpsapersonthinkmoreclearlybyneutralizingextraneousdistractions.

Reorientation: zz Reorientation involves a change in an employee’s basic self through achange ingoalsandvalues.Professional counsellingbypsychologistsandpsychiatristsoftenhelpsemployeesreorienttheirvalues.Forexample,abetterself-imagehelpsapersontobemoreeffective.


Notes


7.6.3 Types of Counselling

Whenwelookuponcounsellingintermsoftheamountofdirectionthatacounsellorgivesacounsellee,weseethatitisacontinuumfromfulldirection(directivecounselling)tonodirection(non-directivecounselling).Betweenthetwoextremesisparticipativecounselling.

Directive Counselling:Directivecounsellingistheprocessoflisteningtoanemployee’sproblems,decidingwiththeemployeewhatshouldbedone,andthentellingandmotivatingtheemployeetodoit.Directivecounsellingmostlyaccomplishesthecounsellingfunctionofadvicebutitalsomay reassure, communicate, give emotional release, and (to aminor extent) clarify thinking.Reorientationisseldomachievedindirectivecounselling.

Non-directive Counselling:Nondirective,orclient-centered,counsellingisattheoppositeendofthecontinuum.Itistheprocessofskillfullylisteningandencouragingacounselleetoexplainbothersome problems, understand them, and determine appropriate solutions. It focuses onthecounselleeratherthanonthecounselloras judgeandadviser;henceit is ‘client-centered.’Theunique advantage of non-directive counselling is its ability to encourage the employee’sreorientation. Itemphasizeschanging theperson, insteadofdealingonlywith the immediateproblemintheusualmannerofdirectivecounselling.

Participative Counselling:Non-directivecounsellingbyemployersislimitedbecauseitrequiresprofessional counsellorsand is costly.Directivecounsellingoften isnotacceptedbymodern,independent employees. Thismeans that the types of counsellingusedbymany supervisorsandHRdepartmentemployeesliessomewherebetweenthetwoextremesofdirectiveandnon-directive counselling. Thismiddle ground is called participative (or cooperative) counsellingbecause the counsellor and counsellee participate in discussing a problem and developing apossible solution. Participative counselling is amutual counsellor-employee relationship thatestablishesacooperativeexchangeofideastohelpsolveanemployee’sproblems.Itisneitherwhollycounsellee-centrednorwhollydirectivecounselling.Rather,thecounsellorandcounselleeusemutualdiscussiontoapplytheirdifferentknowledge,perspectives,andvaluestoproblems.Participative counselling integrates the ideas of both participants in the counselling relationship. It is, therefore,abalancedcompromise thatcombinesmanyadvantagesofbothdirectiveandnon-directivecounsellingwhileavoidingmostoftheirdisadvantages.Italsoisbestfittedtotheskillsofmostcompanypeoplewhocounselemployees.

Participativecounsellingstartsbyusing the listening techniquesofnondirectivecounselling;butastheinterviewprogresses,participativecounsellorsmayplayamoreactiverolethananondirectivecounsellordoes.Theymayofferbitsofinformationandinsight.Theymaydiscussthesituationfromtheirbroaderknowledgeoftheorganisation,thusgivingtheemployeeadifferentviewoftheproblem.Ingeneral,participativecounsellorsapplythefourcounsellingfunctionsofreassurance,communication,emotionalreleaseandclarifiedthinking.

Performance Counselling

1. Analyseyouremployee’sperformance:

(a) Formulatepositivebehaviourchanges

(b) Identifyspecificbehaviourchanges

(c) Identifyareasofbetterperformance

2. Askyouremployeetomeetyou

3. (a) Begin the Interview

(b) Getyouremployeetotalk.Listenskillfully

4. Find out how things are going


Notes


5. Askemployee‘TheQuestion’;

“WhatcanI(boss)dotomakeyourjoblessfrustratingandmoresatisfying?”

6. (a) Getemployeetodoself-analysis

(b) Getyourmessageacross.

Task “Some of the so-called modern industries still follow traditional techniques ofperformanceappraisal”.Doyouagree?Ifyes,defendyourargumentwithreasoning.

7.7 Common Rating Errors/Problems

Theproblemwithsubjectivemeasuresistheopportunityforbias.Biasistheinaccuratedistortionofameasurement.Itisusuallycausedbyraterswhofailtoremainemotionallyunattachedwhiletheyevaluateemployeeperformance.Themostcommonraterbiasesinclude:

The halo effectzz

Personal prejudicezz

Theerrorofcentraltendencyzz

Therecencyeffectzz

Theleniencyandstrictnessbiaseszz

Past-oriented approaches have the advantage of dealing with performance that has alreadyoccurredand,tosomedegree,canbemeasured.Theobviousdisadvantageisthatpastperformancecannotbechanged.Butbyevaluatingpastperformance,employeescangetfeedbackabouttheirefforts.Thisfeedbackmayleadtorenewedeffortsatimprovedperformance.Themostwidelyusedappraisaltechniquethathaveapast-orientationinclude:

Rating scaleszz

Comparativeevaluationmethodszz

Checklistszz

Behaviourallyanchoredratingscaleszz

Forcedchoicemethodzz

Fieldreviewmethodzz

Criticalincidentmethodzz

Performancetestsandobservationszz

Theproblemsinherentinperformanceappraisalmaybelistedthus(Teel;GioiaandSims)

1. Judgement errors: Peoplecommitmistakeswhileevaluatingpeopleandtheirperformance.Biases and judgement errors of various kindsmay spoil the show. Bias here refers todistortionofameasurement.Theseareofvarioustypes:

(a) First impressions (primacy effect): Theappraiser’sfirstimpressionofacandidatemaycolourhisevaluationofallsubsequentbehaviour.Inthecaseofnegativeprimacyeffect,theemployeemayseemtodonothingright;inthecaseofapositiveprimacyeffect,theemployeecandonowrong(Harris,p.192).


Notes


(b) Halo: The Halo error occurs when one aspect of the subordinate’s performanceaffectstherater’sevaluationofotherperformancedimensions.Ifaworkerhasfewabsences,his supervisormightgive theworkerahigh rating inallotherareasofwork.Similarly,anemployeemightberatedhighonperformancesimplybecausehehasagooddresssenseandcomestoofficepunctually!

(c) Horn effect: Therater’sbiasisintheotherdirection,whereonenegativequalityoftheemployeeisbeingratedharshly.Forexample,therateerarelysmiles,sohecannotgetalongwithpeople!

(d) Leniency: Dependingonrater’sownmentalmake-upatthetimeofappraisal,ratersmaybe ratedvery strictlyorvery leniently.Appraisersgenerallyfindevaluatingothersdifficult,especiallywherenegativeratingshavetobegiven.Aprofessormighthesitatetofailacandidatewhenallotherstudentshaveclearedtheexamination.Theleniencyerrorcanrenderanappraisalsystemineffective.Ifeveryoneistoberatedhigh,thesystemhasnotdoneanythingtodifferentiateamongemployees.

(e) Central tendency: Analternativetotheleniencyeffectisthecentraltendency,whichoccurswhenappraisers rateall employeesasaverageperformers.Forexample,aprofessor,withaviewtoplayitsafe,mightgiveaclassgradesnearlyequaltoB,regardlessofthedifferencesinindividualperformance.

(f) Stereotyping: Stereotypingisamentalpicturethatanindividualholdsaboutapersonbecauseofthatperson’ssex,age,religion,caste,etc.Bygeneralisingbehaviouronthebasisofsuchblurredimages,theratergrosslyoverestimatesorunderestimatesaperson’sperformance.For example, employees fromrural areasmightbe ratedpoorly by raters having a sophisticated urban background, if they view ruralbackgroundnegatively.

(g) Recency effect: In this case, the ratergivesgreaterweightage to recentoccurrencesthan earlier performance. For example, an excellent performance thatmay be sixor seven months old is conveniently forgotten while giving a poor rating to anemployee’sperformancewhich isnot sogood in recentweeks.Alternatively, theappraisalprocessmaysufferduetoa‘spillovereffect’whichtakesplacewhenpastperformanceinfluencespresentratings.

2. Poor appraisal forms: Theappraisalprocessmight alsobe influencedby the followingfactorsrelatingtotheformsthatareusedbyraters:

Theratingscalemaybequitevagueandunclear.z�

Theratingformmayignoreimportantaspectsofjobperformance.z�

Theratingformmaycontainadditional,irrelevantperformancedimensions.z�

Theformsmaybetoolongandcomplex.z�

3. Lack of rater preparedness: The raters may not be adequately trained to carry outperformancemanagementactivities.Thisbecomesaseriouslimitationwhenthetechnicalcompetence of a ratee is going to be evaluated by a rater who has limited functionalspecializationinthatarea.Theratersmaynothavesufficienttimetocarryoutappraisalssystematicallyandconductthoroughfeedbacksessions.Sometimestheratersmaynotbecompetenttodotheevaluationsowingtoapoorself-imageandlackofself-confidence.Theymayalsoget confusedwhen theobjectivesof appraisal are somewhatvagueandunclear.

4. Ineffective organizational policies and practices: If the sincere appraisal effort put in byarater isnotsuitablyrewarded, themotivationtodothe jobthoroughlyfinishesoff.Sometimes,lowratingsgivenbyratersareviewednegativelybymanagement–asasignof


Notes


failureonthepartofraterorasanindicationofemployeediscontent.So,mostemployeesreceive satisfactory ratings, despite poor performance. Normally, the rater’s immediatesupervisormustapprovetheratings.However,inactualpractice,thisdoesnothappen.Asaresult,therater‘goesoffthehook’andcausesconsiderabledamagetotheratingprocess.

7.8 Creating the Total Performance Management Process

TotalPerformanceManagementSystemisdesignedtocaptureandassessallemployeeeffortsand align them with desired organizational results. It includes work performed on specialassignmentsandprojectsaswellasleadershipbehaviourstopromoteinnovation.

It includes four stages:

Stage 1: Performance Planning:Weworkwithyou to incorporate theorganization’sstrategicgoalsintoaperformancemanagementprogramforemployees.

Stage 2 : Performance Development:Thisstageensuresthatemployeesandtheirmanageragreeontheoverallgoalsforthepositionandidentifythetoolsnecessarytohelptheemployeemeettheirperformanceobjectives.

Stage 3 : Performance Coaching:Wehelpfacilitateaprocess toprovideon-goingfeedbacktoemployeesthatincorporatesfunctionaljobperformanceaswellasworkperformanceonprojectssothatallperformancemeasuresareevaluatedanddevelopmentgapsareproperlyidentifiedand addressed.

Stage 4 : Performance Review:WewillcustomizeaTotalPerformanceReviewTooltomeetyourorganizationsspecificrequirements.

Self Assessment


13. GraphicRatingScale,PairedComparisonMethod,andForcedDistributionMethodareallexamplesof:

(a) measuresontheHRScorecard

(b) techniquesforappraisalperformance

(c) performancemanagementsystems

(d) managementbyobjectives

14. Theproblemthatoccurswhenasupervisor’sratingofasubordinateononetraitbiasestherating on that person on other traits is called:

(a) the halo effect

(b) centraltendency

(c) leniencyorstrictnessproblems

(d) bias

15. An appraisal method that aims at combining the benefits of narrative and quantifiedratingsbyanchoringaquantifiedscalewithspecificnarrativeexamplesofgoodandpoorperformanceiscalled:

(a) managementbyobjectives

(b) behavioral anchored rating scale


Notes


(c) criticalincidentmethod

(d) alternationrankingmethod

16. Theprocessthatconsolidatesgoalsetting,performanceappraisal,anddevelopmentintoasingle,commonsystemiscalled:

(a) performanceappraisal

(b) the hr scorecard

(c) performancemanagement

(d) managementbyobjectives

Case Study 360-Degree Feedback in Otis Elevators Co.

Otis Elevator Company had concerns that its old paper-based performanceappraisalsystemwastooslowandcumbersome.Therewerealsoconcernsaboutwhethertheraterscouldbeassuredoftheconfidentialitytotheirratings.Because

of theseproblems, the companywantedabetter system forappraisinganddevelopingtheperformanceof its engineeringmanagers. Specially, the companywas interested inenhancing thesemanagers’projectmanagementandproject team leadership skills.Theengineeringmanagersneededsubstantial improvementintheirskills,andthecompanywantedaperformanceappraisalsystemthatwouldprovidefeedbackfromthemanagers’subordinates,peersandcustomersaswellastheirdirectsuperiors.

Giventheseconcerns,itisnotsurprisingthatOtisElevatordecidedtodevelopa360-degreefeedback system. The innovative aspect of the company’s approach to the 360-degreesystemisthatthecompanydecidedtobasethesystemontheInternetanditsownIntranet.Aindependentcontractor,E-Group,developedthesystemandhandlesthecollationandanalysisofthefeedbackinformation.

E-group chose a 75-item survey called LEAPS, which measures seven dimensions ofleadership, for the 360-degree instrument. The instrumentwas loaded on awebsite sothatall raterscanpullupthe informationandcomplete theappraisal inapproximately20 minutes. After completing the appraisal, they simply submit the results via e-mailtoE-Grouptoprocess.Becausethesystemisencrypted,thecompanyisabletoprovidegreater confidentiality andanonymity for the raters thanwith thepreviouspaper-and-pencil system. Inaddition to theLEAPS items, the company includeda fairly large setof other items to assessmanagers’ technical competency and their contributions to thebusiness.E-Groupwasable toprovideappraisalprofiles for themanagerswithin threedaysafterthelastoftheevaluatorse-mailedtheirinputforthemanager.Inaddition,theprofileofactualratingsforeachmanagerfromE-GroupalsoincludesanidealleadershipprofiledevelopedbyOtisexecutives.Bycomparinghisactualratingswiththeidealprofile,managerscanidentifyareasforfuturedevelopment.OtisElevatorchosetousethesystemonlyfordevelopmentalpurposes,althoughrecentlyitbegantoconsiderotherpurposesforthesystem.

Questions

1. Howwas the360-degreeappraisalbetter than the traditional appraisal system inOtisElevators?

2. WhatproblemsdoyouthinkOtisElevatorexperiencedoncethe360-degreesystemwassuccessfullyimplementedontheInternet?

Contd…


Notes


3 In past, many human resource professionals have been almost obsessed withformsorformatsusedinperformanceappraisalsystem.Howistheapplicationof 360-degree performance appraisal systems different from the old obsessionwithformsorformats?

7.9 Summary

Performancemanagementsystemisaprocessforsettinggoalsandmonitoringprogresszz

toward achieving those goals.

Itisjustlikeothersystemwhereachievedresultsarecontinuallymeasuredandcomparedzz

with the desired goals or outputs.

Monitoringmeansconsistentlymeasuringperformanceandprovidingregularfeedbacktozz

employeesandworkgroupsontheirprogresstowardreachingtheirgoals.

Performanceappraisedsystemsaredesignedtoimproveperformance,theybroadlycoverzz

threeareas:defineperformance,facilitateperformanceandencourageperformance.

Theobjectiveofpotentialappraisalistoidentifythepotentialofagivenemployeetooccupyzz

higherpositionsintheorganizationalhierarchyandundertakehigherresponsibilities.

Assessmentcenterisatypeofappraisalmethod.zz

Theproblemwithsubjectivemeasuresistheopportunityforbias.Biasistheinaccuratezz

distortionofameasurement.

Itisusuallycausedbyraterswhofailtoremainemotionallyunattachedwhiletheyevaluatezz

employeeperformance.

Themostcommonraterbiasesincludezz

The halo effect z�

Personal prejudicez�

Theerrorofcentraltendencyz�

Therecencyeffectz�

Theleniencyandstrictnessbiasesz�

7.10 Keywords

360-degree Feedback: Wheremultipleratersareinvolvedinevaluatingperformance,thetechniqueis called 360-degree appraisal.

Assessment Centre: Itisanappraisaltechniquethatreliesonmultipletypesofevaluationandmultipleraters.

Checklist: Performanceappraisaltoolthatusesalotofstatementsorwordsthatarecheckedbyraters.

Counseling: Counseling is the discussion of a problem with an employee, with the generalobjectiveofhelpingtheworkercopewithit.

Directive Counseling:Directivecounsellingistheprocessoflisteningtoanemployee’sproblems,decidingwiththeemployeewhatshouldbedone,andthentellingandmotivatingtheemployeeto do it.

Monitoring:Itmeansconsistentlymeasuringperformanceandprovidingregularfeedback.


Notes


Non-directive Counseling: Non-directive,orclient-centered,counsellingisattheoppositeendofthecontinuum.Itistheprocessofskillfullylisteningandencouragingacounselleetoexplainbothersomeproblems,understandthem,anddetermineappropriatesolutions.

Participative Counseling:Participativecounselingisamutualcounselor-employeerelationshipthatestablishesacooperativeexchangeofideastohelpsolveanemployee’sproblems.Itisneitherwhollycounsellee-centrednorwhollydirectivecounseling.

Performance Appraisal: A systematic and objective way of evaluating both work relatedbehaviourandpotentialofemployees.

Performance Management System: It is a process for setting goals andmonitoring progresstoward achieving those goals.

Rating Scale: Amethodwhichrequirestheratertoprovideasubjectiveperformanceevaluationalongascalefromlowtohigh.


1. “Performance appraisal is not merely for appraisal but is for accomplishment andimprovementofperformance”.Discuss.

2. Discusstheappropriatenessofperformancemanagementsysteminpresenttime.

3. BeinganHRmanagerhowwouldyoudevelopaperformanceplan?

4. Whatisperformancemonitoring?Explainwithexample.

5. Suggestastepwiseprocessfortheperformancemanagementsystem.

6. Whatarethebenefitsofassessmentcenterstotheorganizationstoday?

7. Whatisthedifferencebetweenpotentialappraisalandperformanceappraisal?Whichonedoyouthinkisbetterandwhy?

8. Whathomeworkdoyousuggestforacorporatecounselor?

9. Whoseresponsibilityitshouldbetochalkouttheperformanceplanfortheemployeeswithbiggestpotential?

10. Doyouthinkthatcontinuousperformancemonitoringincreasestheemployeeproductivityorviceversa?Givereasonstosupportyouanswer.

11. Thinkofatimewhensomeonegaveyoucounsellinginaninappropriatemanner.Givenwhatyoureadinthisunit,howcouldyouhavereactedtoimprovetheusefulnessofthefeedback?


1. (c) 2. (b)

3. True 4. False

5. True 6. True

7. False 8. False

9. False 10. True

11. True 12. True

13. (b) 14. (a)

15. (b) 16. (c)


Notes











Online links http://www.successfactors.com/info/en/performance-management/?source=Google_ppc

www.business-marketing.com

en.wikipedia.org/wiki/Performance_management

http://managementhelp.org/performancemanagement/index.htm

http://www.opm.gov/perform/overview.asp

Unit 8: Compensation Management

Notes



CONTENTS

Objectives

Introduction

8.1 ObjectivesandNatureofCompensationManagement

8.1.1 ObjectivesofCompensationManagement

8.1.2 NatureofCompensation

8.2 EstablishingPayPlansandRates

8.2.1 EquityandPayRates

8.2.2 Job Evaluation

8.2.3 WageandSalarySurveys

8.2.4 GroupSimilarJobsintoPayGrades

8.2.5 PriceeachPayGrade–WageCurves

8.2.6 FineTunePayRatesandDetermineWageStructure

8.3 Job Evaluation

8.4 Pricing Managerial and Professional Jobs

8.4.1 CharacteristicsofaDesirableWagePlan

8.4.2 UniversalFactors

8.5 Competency-basedPay

8.5.1 CompetencyMapping

8.5.2 MethodofCompetency-basedPay

8.5.3 BenefitsandLimitations

8.6 VariablePayPlans

8.7 FringeBenefits

8.7.1 Coverage

8.7.2 NeedforExtendingFringeBenefits

8.7.3 NeedforFringeBenefit

8.7.4 ObjectivesofFringeBenefits

8.7.5 BenefitsofFringeBenefitstoEmployees

8.7.6 TypesofFringeBenefits

8.8 Summary

8.9 Keywords




Notes


Objectives


Definethetermcompensationzz

Discusstheestablishingpayplansandrateszz

Statetherelevanceofjobevaluation,pricingmanagerialandprofessionaljobszz

Explaintheconceptofcompetency-basedpayandvariablepayplanszz

Realizetheimportanceoffringebenefitszz

Introduction

Compensationiswhatemployeesreceiveinexchangefortheirwork.Themanagementofthiskey activity helps the organisation obtain,maintain and retain a productivework force. Theoutcomesofpaydissatisfactionmaydetractfromtheorganisation’sproductivityandsuggestadeclineinthequalityofworklife.Poorlycompensatedjobscanleadtoabsenteeismandotherforms of employeewithdrawal. High compensation costs reduce the firm’s competitiveness.Thisbalancebetweenpaysatisfactionandorganizationalcompetitivenessunderliesmostofthehumanresourcedepartment’scompensationefforts.

8.1 Objectives and Nature of Compensation Management

8.1.1 Objectives of Compensation Management

Acquirequalifiedpersonnel.zz

Retainpresentemployees.zz

Ensureequity.zz

Reward desired behaviour. zz

Control costs. zz

Complywithlegalregulations.zz

Administerefficiently.zz

Compensation objectives are guidelines. But the better the objectives are followed, themoreeffective thewage and salary administrationwill be.Tomeet theseobjectives, compensationspecialistsevaluateeveryjob,conductwageandsalarysurveys,andpriceeachjob.

8.1.2 Nature of Compensation

Compensationofferedbyanorganisationcancomebothdirectlythroughbasepayandvariablepayandindirectlythroughbenefits.

Base pay:zz Itisthebasiccompensationanemployeegets,usuallyasawageorsalary

Variable pay:zz Itisthecompensationthatislinkeddirectlytoperformanceaccomplishments(bonuses,incentives,stockoptions)

Benefits:zz Theseareindirectrewardsgiventoanemployeeorgroupofemployeesasapartoforganizationalmembership(healthinsurance,vacationpay,retirementpension,etc.)


Notes


Did u know?WageBoard isoneof the important institutionssetupby theGovernmentofIndiaforfixationandrevisionofwages.Separatewageboardsaresetupforseparateindustries.WageBoardsarenotgovernedbyanylegislationbutareappointedonanadhocbasisbytheGovernment.

8.2 Establishing Pay Plans and Rates

Themostimportantobjectiveofanypaysystemisfairnessorequity.Theterm‘equity’hasthreedimensions:

1. Internal equity:Thisensuresthatmoredifficultjobsarepaidmore.

2. External equity:Thisensuresthatjobsarefairlycompensatedincomparisontosimilarjobsinthelabourmarket.

3. Individual equity:Itensuresequalpayforequalwork,i.e.,eachindividual’spayisfairincomparisontoothersdoingthesame/similarjobs.

Inaddition,thereareotherobjectivesalso.Theultimategoalofcompensationadministration(theprocessofmanagingacompany’scompensationprogramme)istorewarddesiredbehavioursandencouragepeopletodowellintheirjobs.Someoftheimportantobjectivesthataresoughttobeachievedthrougheffectivecompensationmanagementarelistedbelow:

1. Attract talent:Compensationneeds tobehighenough toattract talentedpeople.Sincemanyfirmscompetetohiretheservicesofcompetentpeople,thesalariesofferedmustbehighenoughtomotivatethemtoapply.

2. Retain talent:Ifcompensationlevelsfallbelowtheexpectationsofemployeesorarenotcompetitive,employeesmayquitinfrustration.

3. Ensure equity:Payshouldequaltheworthofa job.Similar jobsshouldgetsimilarpay.Likewise,morequalifiedpeopleshouldgetbetterwages.

4. New and desired behaviour: Pay should reward loyalty, commitment, experience, riskstaking,initiativeandotherdesiredbehaviours.Wherethecompanyfailstorewardsuchbehaviours,employeesmaygoinsearchofgreenerpasturesoutside.

5. Control costs:Thecostofhiringpeopleshouldnotbetoohigh.Effectivecompensationmanagementensuresthatworkersareneitheroverpaidnorunderpaid.

6. Comply with legal rules:Compensationprogrammesmustinvariablysatisfygovernmentalrulesregardingminimumwages,bonus,allowances,benefits,etc.

7. Ease of operation:Thecompensationmanagementsystemshouldbeeasytounderstandand operate. Then only will it promote understanding regarding pay-related mattersbetweenemployees,unionsandmanagers.

8.2.1 Equity and Pay Rates

The need for equity is themost important factor in determining pay rates. This is achievedthrough the following steps:

Find the worth of each job through job evaluation.zz

Conductasalarysurveytofindwhatotheremployersarepayingforcomparablejobs.zz

GroupsimilarjobsintoPaygrades.zz


Notes


Priceeachpaygradebyusingwagecurves.zz

Finetunepayrates.zz

8.2.2 Job Evaluation

Jobanalysisoffersvaluableinformationfordevelopingacompensationsystemintermsofwhatdutiesandresponsibilitiesneedtobeundertaken.Theworthofa jobtotheorganisationisasascertainedthroughjobevaluation.Sincethewholeprocessislargelysubjective,acommitteeisappointedtocollectinformationandcomeupwithahierarchyofjobsaccordingtotheirvalue.Theevaluationisdonethroughtheuseofmarketpricingorthroughtheuseofranking,pointorfactorcomparisonmethods.

8.2.3 Wage and Salary Surveys

While jobevaluationensuresinternalequity,wageandsalarysurveysensureexternalequity.Awageandsalarysurveyprovidesinformationastowhatotherorganisationsthatcompeteforemployeesarepaying.Thesurveycouldcoverallthejobswithinanorganisation(obviouslycostlyandhenceavoided)orlimitedtobenchmarkjobs, jobsthatareusedtoanchorthecompany’spayscaleandaroundwhichotherjobsareslottedbasedontheirrelativeworthtothefirm.Thebenchmarkjobshavethefollowingbasiccharacteristics:

Manyworkersinothercompanieshavethesejobs.zz

Theywillnotbechangingintheimmediatefutureintermsoftasks,responsibilities,etc.zz

Theyrepresentthefullrangeintermsofsalarysuchthatsomeareamongthelowestpaidzz

inthegroupofjobs,othersareinthemiddlerangeandsomeareatthehighendofthepayscale.

Formalandinformalsurveys(throughtelephone,forexample)couldbeundertakentocollectdataonbenefitslikeinsurance,medicalleave,vacationpay,etc.,andsoofferabasisonwhichtotakedecisionsregardingemployeebenefits.

!Caution Published sources also provide valuable information regarding industry-wisetrendsinsalarystructuresinandaroundthecountry.

The published sources in India include:

ReportspublishedbytheMinistryofLabour.zz

Paycommissionreports.zz

ReportsofWageBondsappointedbyGovernment.zz

Reportsofemployeesandemployers’organisations.zz

Tradejournalsofspecificindustrygroups,etc.zz

Oneofthemajorproblemswiththesesourcesisthecomparabilityofjobsinthesurveytojobsintheorganisation.Toovercomethelimitationsofpublishedsurveys,conductyourownsurveysofimportantjobs.Thefollowingsurveymethodsaregenerallyusedtocollectrelevantwage-relatedinformation:

Key job matching:zz Under this method, similar key jobs are identified between theorganisationsandtherelevantwageparticularsaboutthosecomparablejobsarecollected.

Key class matching: zz Similar classes of jobs are identified and the necessarydata aboutthose classes are collected.


Notes


Occupational method:zz Certainbasicoccupationalgroupslikeclerks,officersmanagersareidentifiedandthenthenecessarydataiscollected.

Job evaluation method:zz Allthepartiesparticipatinginthesurveymethod,usethesamemethodandsamemechanismforevaluatingsimilarjobs.

Broad classification method:zz Underthismethod,broadgroupsofrelativelyhomogeneousjobs,i.e.,byindustry,byprofessionorbygeographicalareaaregroupedandtherelevantinformationaboutthesejobsiscollected.

8.2.4 Group Similar Jobs into Pay Grades

Inthisstep,similar jobs(intermsoftheirrankingornumberpointsasascertainedbythe jobevaluation committee) are grouped into grades for pay purposes. The organisation can nowfocuson,say10to12paygrades,insteadofhundredsofpayrates.Apaygradeconsistsofjobsofapproximatelyequaldifficultyor importanceasdeterminedby jobevaluation. If thepointmethodisused, thepaygradeconsistsof jobsfallingwithinarangeofpoints.Tentosixteengradesperjobcluster(factoryjobs,clericaljobs)iscommon.

8.2.5 Price each Pay Grade – Wage Curves

Inthenextstep,payratesareassignedtopaygradesthroughawagecurve.Thewagecurveshowsgraphicallythepayratescurrentlypaidforjobsineachpaygraderelativetothepointsorrankingsgiventoeachjoborgrade.

A completedwage curve tellsmanagement the average relationship between the pay gradepointsandwagerates.Itwillshowwhichpayisoutofthetrendline.Ifajob’spayrateisveryhigh–wherethecurrentratespaidbythecompanyfallwellaboveorbelowthewageline–thosewageratesareidentifiedas‘redcircle’rates.Thisonlymeansthatpayisfrozenorbelowaverageincreases are granted until the structure is adjusted upward to place the circled rate within a normalrange.

8.2.6 Fine Tune Pay Rates and Determine Wage Structure

Heretheemployeesfixapayrangeforeachgrade(OfficerGradeI,IIandIII,forexample,inBankingindustry).Thewagestructureofacompanyisnothingbutapayscaleshowingrangesofpaywithineachgrade.

8.3 Job Evaluation

Jobevaluationconsiderstheresponsibilities,skills,effortsandtheworkconditionsofthejob.Thepurposeofjobevaluationistodecidewhichjobsshouldbepaidmorethanothers.Itdeterminestherelativeworthofjobsbyselectingajobevaluationmethod.Themostcommononesarejobranking,jobgrading,factorcomparisonandthepointsystem.

(i) Job Ranking. Each job is ranked subjectively according to its relative importance incomparisonwithother jobs.Theserankingsdonotdifferentiate therelative importancebetweenjobs.Payscalesbasedonthesebroadrankingsensurethatmoreimportantjobsare paid more. But since the rankings lack precision, the resulting pay levels may beinaccurate.

(ii) Job Grading. Job grading, or job classification,works byhaving each job assigned to agrade.Onceagain,moreimportantjobsarepaidmore.

(iii) Points Rating. Under this system, points are awarded for factors such as experience,training,mental alertness required,physical effortnecessary etc.which are common to


Notes


mostjobs.Accordingtotherelativeimportanceofthefactors,weightageisgiventothosepoints. Thereafter all the points are totalled up to arrive at the rating value of the job.

(iv) Factor Comparison. Thismethodrequires tocomparecritical jobcomponents.Theyarethosefactorswhicharecommontoallthejobssuchasresponsibility,skill,mentaleffort,physicaleffortandworkingconditions.3Thismethodinvolvesthefollowingfivesteps.

(a) Determinecriticalfactors,

(b) Determinekeyjobs(benchmarkjobs),

(c) Allotpresentwageforkeyjobs,

(d) Placekeyjobsonafactorcomparison,

(e) Evaluate other jobs.

8.4 Pricing Managerial and Professional Jobs

Oneoftheimportantchallengesinbusinesstodayisattractingandretainingqualityemployees.Itistruethatchallengingwork,goodworkingconditions,fairwagesandsalarieshelpingettingprospectivecandidatesintoanorganization.Apartfromthis,anemployer’sbenefitprogrammeis an important ‘magnet’ that helps an organization to attract and retain talent. Of course,companies cannotgobeyondapointwhiledesigninganattractive compensationpackage. Itcanatbestbeinsyncwithcompetitionandindustrypractices.Incentivesandbenefitscostalotandconstituteamajorportionofthecost(inmostcasesover40percentofthetotalpayrollcosttoemployers).Inactualpractice,keepingtrackofthelegalrequirementsandgoingbeyondthebook andmeetingmulti-myriad employee expectations couldprove tobe really challenging.Themotivationalvalueofafullbenefitsprogrammeisalwaysopentoquestion,ifitisnotbeingdesignedandadministeredproperly.Theincentivesandbenefitsprogramme—especiallyinthe21stcentury--isnotanactofmercifulgivingorwhimsicalactionsandmostemployees‘expect’thepackagetobeunique,attractiveandmotivating.

8.4.1 Characteristics of a Desirable Wage Plan

Simple: The systemofwagepayment shouldbe simple and easily intelligible to theworker.Aboveall,itmustbeperceivedbyemployeesasequitable.

Beneficial:Theallocationofgainsshouldbejudiciouslymadeamonglabourandmanagementonsomeequitablebasis.

Equitable:Eachworkershouldbepaidfairly,inlinewithhiseffort,abilitiesandtraining.

Guaranteed minimum wage: The system should guarantee a minimum wage (to meet barenecessitiesandcomfortsof life) toeveryworker.Payshouldbeenough tohelpanemployeecover his basic needs.

Balanced: Pay, benefits and other rewards should offer a reasonable total compensationpackage.

Incentive-oriented:Thewagesystemshouldbesuchthattheworkersmayfeelencouragedtoproducemoreandearnmorewages.

Quality output:The systemmustencourage theworkernotonly to increase thequantumofoutputbutalsoimprovethequalityofoutput.

Certainty:Wagesshouldbepaidincashonaconvenientdate,timeandplaceduringworkinghours.Thesystemshouldnothaveanyelementofuncertainty.

Cost-effective:Payshouldnotbeexcessive,consideringwhatanorganisationcanaffordtopay


Notes


Flexible:Thesystemshouldbeflexibletoallownecessarychanges,whichmayarisefromtimetotime(SeeArmstrong;Hills)

8.4.2 Universal Factors

The various factors used to value jobs for managerial and professional status relate to the“universalfactors”.

Knowledge

Formal Education/Training

1. Basic skills, supplemented by specialized or technical knowledge; equivalent to 3-12monthsofvocational/specializedtraining.

2. Extensivetechnical/specializedknowledge;equivalenttoanAssociatesdegreeor2-3yearsofvocational/specializedtraining.

3. Broad educational background including advanced verbal, writing and math skills;equivalenttoatwotothree-yeardegreeinaspecializedtechnicalfield.

4. Extensiveknowledgeinatechnicalorprofessionalfield,equivalenttoacollegedegree.

5. Advancedlevelofknowledgeinatechnicalorprofessionalfield,equivalenttoanadvanceddegree(MA/MLS/MS/MBA/CPA/Law).

6. Doctorate degree

Work Experience

Thismayextendfromperiodtoperiodacquiringdifferentranks/grades/score.

Mental Demands

Thisfactormeasurestheextenttowhichoriginalandindependentthinkingandresourcefulnessarerequired in the job.This factor includes the ingenuity involved innegotiating/counselingwithothersaswellasthecreativityrequiredtooriginateanddevelopneworimprovedmethods,procedures,programs,plansandproducts.Whenratingthejob,matchitfirsttooneofthesevenlevels;ifthedescriptionmatchesthejob,usethemiddlenumberforthelevel-ifthejobrequiressomewhatmorethanthedescription,usethelargernumber-ifitrequiressomewhatless,usethesmallernumber.

1. Required to develop improvedmethods and procedures and to use resourcefulness inapplyingknowledge.

2. Originatesneworimprovedmethodsandprocedures,OR,requiresindependentthinkingtoimprovetheoperationsofowndepartment/office.

3. Originates ordevelops improvedprocedures,products or ideaswhenmethods arenotfullydefined,OR,refinesideasofacomplexnature,OR,requiresindependentthinkingtoaccomplishmajorchangestooperationsofowndepartment/office.

4. Originates or developsmoderately complexmethods, procedures, products or ideas innewandundefinedareas,OR,appliesindependentthinkingtodirectamajoroperationofadepartment/office.

5. Originates or develops complex methods, procedures, products or ideas in new andundefinedareas,OR,appliesindependentthinkingtodirectadepartment.


Notes


6. Originates or develops very complex ideas/concepts in new andundefined areas,OR,applies independent thinking to direct a division that has significant impact on entireorganization.

Operating Responsibility

Thisfactormeasurestheextenttowhichthejobincumbentisresponsibleforthemanagementofoperations;consider:thedifficultyandcomplexityofanalyticalability,judgmentandtimelinessinmakingdecisions/takingactionsonpolicies,operatingproblemsandoperatingdecisions.

Complexity and Difficulty of Operating Decisions

1. Operatingdecisionsmadeby interpretingspecificguidelinesorpractices;mayassist informulatingrecommendationsondifficult/importantdecisions.

2. Operatingdecisionsandactionsaredifficultand/ornotfullyprescribed;regularlydevelopssolutionstoproblemsusingestablishedprinciples.

3. Operatingdecisionsandactionsareguidedbyestablishedobjectives,withoutprescribedguidelines and require resolution of complex problems using factual information/managementprinciples;decisionsimpactseveralrelatedfunctions/workareas/offices.

4. Operating decisions are complex and impact the operations of diverse functions/departments; analyses are relatively original and considerable latitude is exercised inreaching decisions.

5. Operatingdecisionsarefinalandimpacttheentireorganizationintheshort-term;regularlymakesrecommendationsonlong-term,strategicissuesfacingtheorganization.

Impact of Operating Decisions on the Organization

Thisfactormeasurestheextenttowhichthejobincumbentisresponsibleforthemanagementofoperations.Considertheextenttowhichtheaccuracy,timelinessandadequacyofsuchdecisionsimpactoperations.

1. Moderatecosts/impactonownworkarea.

2. Considerablecosts/impactonownworkarea.

3. Majorimpacttoefficiency/effectivenessoroperationsofasignificantoffice.

4. Impactofoperatingdecisionsoutsideofimmediateworkarea.

5. Majorimpactontheperformanceofadepartment.

6. Majorimpactontheperformanceofadivisionthataccountsforasignificantportionoforganizationalperformance.

Administrative Responsibility

Thenexttwofactorsmeasuretheextenttowhichthejobincumbentisresponsiblefortheworkofothers,intheformofdirectsupervisionorasfunctionaldirection/technicaladvice,whetheritbeininstructionalsupport,institutionalsupport,oradministrativesupport.Thesefactorsconsider:(a)thedifficultyandcomplexityoftheincumbent’sresponsibilitiesfortheworkofothers,and(b)thesizeofaffected,aswellasthevarietyofcomplexityofworkperformedbythosedirected.


Notes


Difficulty and Complexity of Responsibilities for Work of Others

1. Nosignificantresponsibilityfordirectingothers.

2. Supervision is routineandactivitiesofsubordinatesarecoveredbyestablishedpolicy/procedurewithlimiteddiversityintypesofactivitiesperformed,OR,occasionalfunctionalguidanceisprovidedinonespecializeddiscipline,toasmallworkgroup.

3. Supervisioninvolvesworkthatistechnicalanddiverseinnature;subordinatesmayworkonmultipleshiftsand inmultiple locationsand/orrequirecloseattention tohowtheirworkisintegrated,OR,regularfunctionalguidanceisprovidedinacomplexdisciplinetoadiverseworkgroup.

4. Supervision may involve complex multi-shift or multi-location coordination and is ofaworkunit performingvery complex technicalwork involving significantdiversity orstaffingandmanagingallpersonnelinvolvingfewlevelsofreportingandlimiteddiversity,OR,regularfunctionalguidanceisprovidedinacomplexdisciplinetoallofadepartment

5. Responsibleforstaffingandmanagingpersonnelinvolvingmultiplelevelsofsupervisionandvery technical anddiversework;OR, functional guidance inmost facets of a verycomplexdisciplineisprovidedtoasignificantportionoftheorganization

6. Responsibleforstaffingandmanagingallpersonnelofahighlytechnicalandcomplexsectioninvolvingseverallevelsofsupervisionandverydiverseactivities;OR,functionalguidanceinmostfacetsofaverycomplexdisciplineisprovidedtotheentireorganization.

Scope of Responsibility for Direct Supervision

Thissub-factorappliesonlytosubordinatepersonnelwhoreporttothejobbeingrated.

1. No staff supervision.

2. Coordination or direction of function of others. (If points awarded for supervision of studentsand/oremployees,nopointsawardedforcoordination.)

3. Supervisionofgroupof1-5employees.

4. Supervisionof6-14employees

5. Supervisionof15+employees.

6. Supervisionof;25-50%ormoreofinstitute

7. Supervisionof50%ormoreofthetotalemploymentoftheinstitute.

8. Entire institute.

9. Supervisionof1-5studentemployees.

10. Supervisionof6-14studentemployees

11. Supervisionof15+studentemployees.

Work Environment

Thenexttwofactorsmeasuretheextenttowhichthejobisperformedinanenvironmentthatincludesadverse conditionsand/orhazards.The two factors consider: (1) the frequencyandnatureofadverseconditions towhich theemployee isexposedandwhichcannotreasonablybeavoidedwhenperformingthejob,and(2)thefrequencyandnatureofhazardstowhichtheemployeeisexposedandwhichcannotreasonablybeavoidedwhenperformingthejob.


Notes


Adverse Working Conditions

1. Occasionalexposuretomoderatelyunpleasantconditions,includingoccasionaltravel.

2. Frequent exposure tomoderatelyunpleasant conditionsor occasional exposure toveryDisagreeableconditions.Frequenttravel.

Hazardous Working Condition

1. Occasionalexposuretominorinjury.

2. Frequentexposuretominorinjuryoroccasionalexposuretomajorinjury.

Mostemployeesthesedaysexpectthewageplantobeinsyncwithemployeeskills,knowledgeandexperience.Iftheyworkharderandproducemore,theyshouldgetafairshareofthecake.So even an organization is armed with an ideal payment plan—containing all the essentialfeatures just listed above–that’s not enough because employees wish to be paid based ontheircontributions.Highperformanceshouldberecognisedandrewardedappropriatelyandtherefore, it isnotsurprisingtofindmostcompaniesgettingaheadwithpayforperformancesystems—inrecenttimes.

Notes Pay for Performance

Knowledge-based organisations these days follow a performance-based payment planofferingawardstoemployeesforcostsavingsuggestions,bonusesforperfectattendanceormerit pay based on supervisory appraisals. The objective of performance pay is todevelop a productive efficient and effective organisation which enhances employees’motivationandeffectiveness.Performancepayisbasedonemployeesperformanceonthejob. It is believed that this approach attracts and retains better talents.

A growing number of companies in recent times have established compensationprogrammed for employees that offer additional compensation based on individual,group and organisational performance. The logic behind thismove is understandable.Organisationswant every individual to think of performance in the sameway as theorganisation.Youhavetocompete,getahead,deliverresultsandfightforthewiningslotalmostonadailybasis.Insuchascenario,theemployer-employeerelationshipassumesa mercenary dimension, bulldozing poor performers at every stage. The organisationbecomes cold and transactional rather thenwarm and relationship oriented. It affectsworkforcecamaraderie,andundoubtedlykillsthemoraleofalargemajorityofemployeeswholagbehindintherace.Thesingle-mindedfocusonperformanceofcourse,helpstheorganisationinweedingoutthedeadwoodandremainhighlycompetitive.

However,Mostorganizations,however,stillpaytheiremployeesbasedonthenumberofhoursofworkperweekcoupledwithcertainbenefitsforservingthecompanyloyallyfora particular period.

8.5 Competency-based Pay

Competenciesaretheknowledge-skillsandtheattitudeneededbyanyindividualemployeetocarryouttheirjobeffectively.Thesecanbeincorporatedintoapaysystemtorewardindividualswho positively contribute to the overall values and objectives of an organization. This iscompetency basedpay: rewarding thewaypeoplework, not just recognizingwhat they candeliver.


Notes


Competencypayisafancytermgiventotheideaofpayingforthepersonratherthanthejob.Infact,veryfewcompensationplanspayforonlyonething.

Competenciesareoneoftheinputstotheorganization’soperation;thehumaninput.Individualsbring their competencies to work and use them in accomplishing the tasks required by theorganization.Assuch,competenciesareindirectmeasuresofindividualaccomplishment.Itispositedthatiftheindividualsthatmakeuptheorganizationhavetheappropriatecompetenciesandarerewardedappropriately,thentheorganizationwillhavethebestchanceofachievingitsgoals.Usingthemasthebasisforrewardmakestheassumptionthattheuseoftheindividual’scompetencieswillresultinthetypeandlevelofaccomplishmentdesired.

Definition of Competencies

Definingcompetenciesisproblematic.Therearenoclearcutdefinitions.Somehumancharacteristicsdefinitelyfallwithinmostdefinitions,butfromthereawidevarietyofhumancharacteristicsmaybeincluded.Thesefirsttwocompetenciesareagreeduponbyalmosteveryone:

Knowledge: zz Thisistheaccumulatedinformationthattheindividualhasattainedthrougheducation and experience.

Skill: zz This is theapplicationofknowledge toparticularsituations.Theseare the things[tasks]theindividualcando.

Together these might be called the individual’s ability: these two factors are the essential characteristicsofindividualsthatarerequiredtodothejob(asinthemotivationmodelthatstatesthatperformanceisafunctionofabilityxeffort).Knowledgeandskillrequirementsarethebasisoftheselectionprocessandcanbefoundinthejobspecificationsectionofjobdescriptions.

A second level of competencies is that ofbehaviors. In this regard competencies look verymuchlikeBehaviorally-AnchoredRatingScales [BARS]used inperformanceappraisal.Thesecompetenciesrepresenttheapplicationofskillsandknowledgeinworkrelatedsituations,muchlikebehavior-basedquestionsinterviewerswouldaskofapplicants.

A third level of competencies aremore controversial, those ofpersonal characteristics. This opens up competencies to a wide variety of factors such as motives, general disposition,attitudes,valuesandself-image.Thepremisebehindusingthesekindsoffactorsisthatthroughobservationandresearch,theorganizationcanelicitthecriticalfactorsthatdistinguishsuperiorperformance. Then the characteristics that distinguish superior performance from averageperformancecanbeusedasrewards.Theultimategoalbeingthatthetotalproductivityoftheorganizationbeincreased.Whattheorganizationisseekingtodiscoverwiththesefactorsiswhatcauses the individuals toapply theireffort: thisanswers thepartof ‘effort’ in themotivationmodel.However,thesefactorsmayvarybyareaswithintheorganizationandovertimeastheorganizationgrowsandchanges.

Usingthisthirdlevelofcompetenciesrunsintothreeproblems:

1. Thetimeandefforttodevelopcompetenciesthatreflecttheorganization’scharactertakesbothtimeandeffort.Further,thefactorsmaychangeovertime.

2. Measuringthesefactorsinareliableandvalidmannermaybedifficult.Evenknowledge,skillandbehaviorsaredifficulttomeasureastheemploymentprocessshows,andthesepersonalcharacteristicsareevenmoresusceptibletoerror.

3. Relatedtopoint2above,theuseofthesefactorscanrunintolegalproblemswiththeCivilRightsAct.Theuseofpersonalitytestswhosevalidityorganizationshavetroubleproving,hasledmostorganizationstostopusingthesekindsoftestsintheselectionprocess.

Competency-based Pay plan isa rewardplan thatpays for theemployee’s range,depth,andtypesofskillsandknowledge,ratherthanforthejobtitlethatheorsheholds.Employeesgetpaid


Notes


forwhattheybringtothejob(includingtheirpersonalitytraits,attitudes,motivesetc)andwhattheyarecapableofdoing–ifnot immediately–in future.According toBrownandArmstrong, ‘Competency-based pay can be defined as paying for the development and application of essential skills, behaviours and actions which support high levels of individual, team and organisational performance.

Statedprecisely,acompetencyisanunderlyingcharacteristicofapersonororganisationwhichenablestodeliverperformanceinagivenjob,roleorasituation.Competenciescanbebroadlyclassifiedintothreecategories,namely,organisationalcompetencies, jobrelatedcompetenciesandpersonalcompetencies.

Organisational competencies zz are unique factors (outstanding customer service,excellent product development capabilities, superb innovation processes, flexibility inmanufacturingprocessesetc)thatmakeanorganisationcompetitive;someoftheexamplesfor organizational competencies include Sony-miniaturization, Phillips-optical media,Honda-engines,andIntel-microchip.

Job related competencies zz arethosethatarerequiredtocarryoutanassignedoperationinaneffectiveway.Thesearespecifictoajobandvaryfromjobtojob.

Personal competencies zz arebasicallybehaviouralcompetencies—inadditiontojobrelatedskills and knowledge—such as taking risk and initiative, delivering results, showingcommitmentandadaptabilitywhenrequired.

Notes Competencies required for carrying out a job effectively

Competencies as defined by the experts are those demonstrable characteristics of theperson,includingknowledge,skills,andbehaviors,thatexcellentperformersexhibitmoreconsistentlyandmoreeffectivelythanaverageperformers.HoytW.Doyel,consultantatEffectiveCompensation,Incorporated(ECI),providessomesamplecompetencieswhichinclude:

skillsets(operatingequipment)zz

knowledgesets(understandingstatistics)zz

insightfulsellingabilityzz

abilitytobedirect,yetsensitivezz

abilitytokeepthelargerobjective/goalactivezz

abilitytostaycalmunderpressurezz

abilitytobeaneffectivementorzz

creativesolutionstodifficultchallengeszz

effective negotiating abilities zz

consistentlydemonstratesselflessteamspiritzz

Did u know? How to introduce competency based pay plan?

Thefollowingfactorsneedtobefullyintegratedwithinanorganisationbeforecompetencypayplancanbeintroduced:anemployeeappraisalprocessmustalreadyexist;managersmustalreadyhavebeentrainedtoassesscompetencies;staffshouldbemadeawareofthecompetenciesrequiredandhowtodemonstratethemwhenitcomestotheirappraisals;


Notes


allemployeesmustgivetheirfullcommitment;thesystemmustbefairsothatallemployeesare included.

8.5.1 Competency Mapping

Competencymapping is a process to assess and determine one’s strengths as an individualworkerorapartofanorganization.Itusuallycomprisestwoareas:

1. emotionalintelligence/emotionalquotient(EQ),and

2. strengthsoftheindividualinareaslike

teamstructure,z�

leadership,andz�

decision-making.z�

Large organizations frequently employ some form of competency mapping to understandhowtomosteffectivelyemploythecompetenciesofstrengthsofworkers.Theymayalsousecompetencymappingtoanalyzethecombinationofstrengthsindifferentworkerstoproducethemosteffectiveteamsandthehighestqualitywork.

Steps involved in Competency Mapping Process

Thesteps involved incompetencymappingwithanendresultof jobevaluation include thefollowing:

1. Conductajobanalysisbyaskingincumbentstocompleteapositioninformationquestionnaire.Thiscanbeprovidedforincumbentstocomplete,oryoucanconductone-on-oneinterviewsusingthepositioninformationquestionnaireasaguide.Theprimarygoalistogatherfromincumbentswhattheyfeelarethekeybehaviorsnecessarytoperformtheirrespectivejobs.

2. Supportingtheresultsofthejobanalysisdevelopacompetencybasedjobdescription.AsampleofacompetencybasedjobdescriptiongeneratedfromthePIQmaybeanalyzed.Thiscanbedevelopedaftercarefullyanalyzingtheinputfromtherepresentedgroupofincumbentsandconvertingittostandardcompetencies.

3. Withacompetencybased jobdescription,beginmapping thecompetencies throughouthumanresourcesprocesses.

4. Thecompetenciesoftherespectivejobdescriptionbecomeyourfactorsforassessmentontheperformanceevaluation.

5. Usingcompetencieswillhelpguideyoutoperformmoreobjectiveevaluationsbasedondisplayedornotdisplayedbehaviors.

6. Takingthecompetencymappingonestepfurther,youcanusetheresultsofyourevaluationtoidentifyinwhatcompetenciesindividualsneedadditionaldevelopmentortraining.

Thiswillhelpyoufocusyourtrainingneedsonthegoalsofthepositionandcompanyandhelpyouremployeesdeveloptowardtheultimatesuccessoftheorganization.

8.5.2 Method of Competency-based Pay

Followingarethesubsequentstages:

1. Introducing competency based pay: Severalfactorsneedtobefullyintegratedwithinanorganisationbeforecompetencybasedpaycanbeintroduced:

anemployeeappraisalprocessmustalreadyexistz�


Notes


managersmustalreadyhavebeentrainedtoassesscompetenciesz�

staffshouldbemadeawareofthecompetenciesrequiredandhowtodemonstratez�

themwhenitcomestotheirappraisals

allemployeesmustgivetheirfullcommitmentz�

thesystemmustbefairsothatallemployeesareincludedz�

2. Determining the right competencies: Mostcompetencybasedpaysystemsaredeterminedbyperformance indicators.Typically, thecompetenciesneededtodriveprogressionarequantifiedbyseniormanagersthroughemployeeinterviews,surveysandjobanalysis.Thefollowingcompetenciesarerelevanthere:

core competencies that apply to any job within the organisation and reflect thez�

organization’scorevalues

thetechnicalskillsandexpertisethatarenecessarytocarryoutthejobz�

competenciesrelatingtoaspecificjobcategorye.g.‘leadership’forseniormanagersz�

competencies that define the contribution an employee makes to their rolez�

including:

communicationz�

teamworkandmotivationz�

coachingz�

knowledgeandexperiencez�

servicedeliveryz�

liaisonandnetworkingz�

investigationanalysisz�

initiativeandproblemsolvingz�

planning and organising resourcesz�

decisionmakingprocessandoutcomesz�

3. Understanding competency framework: Acompetencyframeworkdefinesthebehaviourneeded by an employee to achieve effective job performance. The framework shouldenableemployeestobeclearaboutwhatisexpectedofthemintermsoftheirbehaviourandspecificjobrole.

Designing the competency framework: Authorities need to consider the following when devisingacompetencyframework:

encourage co-operation, ownership and commitment of employees by involvingz�

themthroughouttheprocess

ensuretheframeworkisrelevanttobothindividualandorganizationalperformancez�

includeaplannedanalysisofrelevantjobstocombinetheimminentchangeswhichz�

willaffectthewaysemployeeswork

ensure that thenecessarydatagathered isasobjectiveaspossibleand isput intoz�

practice with discipline

ensurethattherelationshipbetweencompetenciesandjobperformanceisnottakenz�

for granted

makesurethatthelanguageusedwithintheframeworkrelatestoitsusersandisz�

easytocomprehend.Itshouldalsobetriedandtestedbeforeitisimplemented


Notes


4. Assessing the competencies: Competenciesareassessedthrougharegularappraisalprocesstofacilitatepayprogressionwithinagrade.Thebestapproachisprobablytodescribeeachjobintermsofthecompetenciesneededtodoit.Thesecanbetakenfromasetofcommonor‘core’competencies.Morecomplexindividualcompetencieswillneedtobeaddedformorecomplexseniorroles.

5. Designing the pay structure: Therearetwoestablishedmethodsofcompetencybasedpaystructures:broadbandingandjobfamilies.

(a) Competencies within broad banded pay structures

Thebandboundariesaredefinedusingjobevaluationandmarketrates.The �employees’positioninthebandisreflectiveoftheircompetencywithintheirrole.Employees’expectationscanbeproblematicin‘open’broadbands.

In some systems employers use market rate and job evaluation factors to �splitthebandsintozones.Anemployee’spositionwithinthebandzonewilldependupontheirtechnicalcompetencies.

Advantages:

Employeescandeveloptheircareershorizontallyonthebasisoftheirexperienceandcompetence.Payprogressionandcareerdevelopmentcanbeachievedwithouttheneedforindividualpromotion.

Disadvantages:

Itcanbedifficulttomanagetheexpectationsofemployees,particularlynewrecruits,whomaybeunderthedelusionthattheycanautomaticallymovetoamuchhighersalarysimplybydoingtheirjobsatisfactorily.Infact,theyactuallyneedtodeveloptheircompetencies.Inmanagingtheprocess,effectivecommunicationbetweenlinemanagersandstaffneedstobeputintoplace.

(b) Competencies within a job family structure

Different pay structures can be established for different job families underoccupationalorfunctionalgroupings.Asworkactivitiesandbasicskillsarecommonwithinthesegroupsitispossibletosetoutthedifferentlevelsofresponsibility,skillandcompetence.

Advantages:

Careerprogressionbasedon increases inskillorcompetencecanbeplannedandindividuals have the clarity to perceive how far they can developwithin the jobfamily

Disadvantages:

Ininstanceswherethesejobfamiliesaresegregatedbygenderitcouldappearthatpaydifferentialsaregenderratherthancontentbiased.Inordertoavoidequalpayclaimsmanagersmustexplaintoemployeesandtheirrepresentativeshowthepaysystemisstructuredandworktoencourageabettergendermixacrossjobs.

8.5.3 Benefits and Limitations

Competencybasedpay encourages employees togive their best; to liveup to theirpotentialanddeliver far superior results inorder to stayaheadof competitionandearn rewards.Thetangible,measurablebenefitsofexcellentperformancecompelthemtoremainrelevantandstayfocusedonwhat they canachieve. It is apeople-focusedplan that separates theoutstandingemployees from the ordinary ones, separates the meritorious ones from the mediocre stuff.


Notes


Asemployeesbegin toequip themselveswithmoreorganizationally-relevantskills—throughconstanttraininganddevelopmentalinitiativesundertakenbytheorganisation—theybecomemore valuable to an organisation. Of course the system is not without critics. Identifyingcompetencies,theirproficiencylevels,andassessingemployeecompetenciesfromtimetotimewoulddemandconsiderableamountofmanagerial attention, timeandcommitment.Manyatime,anorganisationmightbeforcedtopayemployeesforknowledgeandskillstheypossessbutnotputintopractice!Thelinkagebetweencompetencylearningandpayincreasesneedtobehighlightedconstantly.Italldependsonhowemployeesultimatelyevaluatetheeffort-rewardrelationship. If competency development is viewed as something not related to increases inpay,employeesmaynotbeenthusiasticabout learningnewcompetencies. It is therefore,notsurprising tofind that in recent times, competency-basedpayhasbecome the focusofmuchheateddebate in corporate aswell as academic circles.While its advocates assert it achievespreciselymeasurablebenefits, itsopponentsarguethat it tendsto leadtounfair, invalid,anddiscriminatory outcomes. Among companies that have implemented competency-based pay,thereisevidencethatthefailurerateisrelativelyhigh.(DarellJ.Ciraetal“Competencybasedpay”,CompensationandBenefitsReview,Vol30,1998)

8.6 Variable Pay Plans

VariablePayreferstocashincentivesandyear-endbonusesgrantedtohighperformersbasedontheirextraordinarycontributionstotheorganisationrelatingtoaspecificperiod.Companieslike Boeing, Timex, and Westinghouse (most retailers in India including Shoppers’ Stop,PantaloonRetail,andcompanieslikePhilipsIndiausethisplan)havebeenusingvariablepayplanswhereinemployeesgetasinglelump-sumincreaseatthetimeoftheirreview—anincreasethat is not added to their base salary. Since the linkbetweenpay andperformance is direct,employeesworkforgettingafairshareof thecake.Sincethebasepayofemployeesremainsunaffected, theorganisation cankeep labour costsunder control (if basepay increases,otherbenefitslikeinsurance,retirementbenefitscalculatedonthebasepayalsoneedtoberaised).Aportionofemployees’compensationisalwaysatriskwithvariablepayplansbecausewhentheperformancesuffers,therewardswouldgetreducedaccordingly.

Self Assessment


1. Externalequityisdeterminedthroughjobanalysis.

2. Anexampleofindirectcompensationis‘pensions’.

3. Paylevelsaredeterminedbycombiningjobevaluationresultswithsurveywagerates.

4. Jobswithsimilarvaluearecombinedintopayranges.

5. The predominant approach to employee compensation in India is still the skill-basedsystem.

6. Paysecrecydoesnotgivefreedomtomangersincompensationmanagement.

7. Fringebenefits,nowadays,arethemostinsignificantcomponentsofcompensation.

8. Subjectiveevaluationsareaproblemwithmeritpaysystems.

9. Themain objectives of compensation administration are to design a cost-effective paystructurethatwillattract,motivateandretainalltheemployees.

10. Compensation is what employees receive in exchange for their contribution to theorganisation.


Notes


11. Basepayisthebasiccompensationanemployeegets,usuallyasawageorsalary.

12. Strategic pay plans refers to the policies and decisions on why organisations givecompensationtoitsemployees.

13. Compensationneedstobehighenoughtoattracttalentedpeople.

8.7 Fringe Benefits

Theterm,fringebenefits,referstovariousextrabenefitsprovidedtotheemployees,inadditionto thecompensationpaid in the formofwageor salary.Thesebenefits canbedefinedasanywagecostnotdirectlyconnectedwiththeemployees’productiveeffort,performance,serviceorsacrifice.Itisalsodefinedasthosebenefitswhichareprovidedbyanemployertoorforthebenefitofanemployeeandwhicharenotintheformofwages,salariesandtime-relatedpayments.

Differenttermsareusedtodenotefringebenefits.Theyincludesocialsecuritymeasures,socialcharges,welfaremeasures,supplements,workers’benefitsetc.

ILOdefined fringe benefits as, “Wages are often augmented by special cash benefits, by theprovisionofmedicalandotherservicesorbypaymentsinkind,thatformpartofthewagesforexpenditureonthegoodsandservices.Inaddition,workerscommonlyreceivesuchbenefitsasholidaywithpaylowcostmeals,lowrenthousingetc.Suchadditionstothewagesproperaresometimesreferredtoasfringebenefitseventhoughtheymayconstituteasignificantpartoftheworker’stotalincome.”

We can thus conclude that fringebenefits includebothmonetary andnon-monetarybenefitsgiventotheemployeesduringandpost-employmentperiodoftheemployee.

8.7.1 Coverage

Theterm‘fringebenefits’coversstatutorybonus,socialsecuritymeasures,retirementbenefitslike provident fund, gratuity, pension, workmen’s compensation, housing,medical, canteen, co-operativecredit,consumerstores,educationalfacilities,recreationalfacilities,financialadviceandsoon.Thus,fringebenefitscoveranumberofemployeeservicesandfacilitiesprovidedbyanemployertohisemployeesandinsomecasestotheirfamilymembersalso.Thewelfareofemployeeandhisfamilymembersisaneffectiveadvertisingandalsoamethodofbuyingthegratitudeandloyaltyofemployees.But,whilesomeemployersprovidetheseservicesoverandabovethelegalrequirementstomakeeffectiveuseoftheirworkforce,somerestrictthemselvestothosebenefitswhicharelegallyrequired.

8.7.2 Need for Extending Fringe Benefits

DuringtheWorldWarII,certainnon-monetarybenefitswereextendedtoemployeesasmeansofneutralizingtheeffectofinflationaryconditions.Thesebenefitswhichincludehousing,health,education,recreation,credit,canteenetc.havebeenincreasedfromtimetotime,asaresultofthedemandsandpressuresfromtradeunions.Ithasbeenrecognizedthatthesebenefitshelpemployees inmeeting some of their life’s contingencies and tomeet the social obligation ofemployers.

Themainfeaturesoffringebenefitsare:

1. Theyaresupplementaryformsofcompensation.

2. Theyarepaidtoallemployeesbasedonthemembershipintheorganisation.

3. They are indirect compensation because they are usually extended as a condition ofemploymentandarenotdirectlyrelatedtoperformance.


Notes


4. Theyhelpraisethelivingconditionsofemployees.

5. Theyarestatutoryorvoluntary.Providentfundisastatutorybenefit,whereastransportationisavoluntarybenefit.

8.7.3 Need for Fringe Benefits

1. To Satisfy Employee Demands: Workersdemand moreandvarietyoffringebenefitsratherthanpayhikebecauseofreductionintaxburdenonthepartofemployees.

2. To Satisfy Trade Union Demands: Ifonetradeunionsucceedsingettingonebenefit,theotherunionpersuadesmanagementtoprovidethenewfringebenefit.Thus,competitionamongthetradeunionresultsinmorevariedbenefits.

3. To Improve Human Relations:Fringebenefitssatisfy theworker’seconomic,socialandpsychologicalneeds.Mostofthefringebenefitssatisfyandremoveeconomicproblemsoftheworkers.Somesocialsecuritybenefitsprovidepost-retirementrelief totheworkers,thus satisfying his psychological needs. There are others like, credit facilities, canteen,recreationalfacilities,customerstoreswhichprovidesocialbenefits.

4. To Improve Organizational Commitment: Itimprovesmoraleandmotivatestheemployeestogivethebesttotheorganisation.Itincreasesorganizationalcommitmentandloyaltytotheorganizationinthelongrun.

5. To Provide Social Security: The employer has to provide various benefits like safetymeasures,compensationincaseofinvolvementofworkersinaccidents,medicalfacilitiesetc.withaviewtoprovidesecuritytohisemployeesagainstvariouscontingencies.

8.7.4 Objectives of Fringe Benefits

1. Tocreateandimprovesoundindustrialrelations.

2. Tomotivateemployeesbyidentifyingandsatisfyingtheirunsatisfiedneeds.

3. Toprovidesecuritytotheemployeesagainstsocialriskslikeoldagebenefitsandmaternitybenefits.

4. To protect the health of the employee and to provide safety to the employees againstaccidents.

5. Topromoteemployees’welfare.

6. Tocreatesenseofbelongingnessamongemployees.

7. Tomeettherequirementofvariouslegislationrelatingtofringebenefits.

8.7.5 Benefits of Fringe Benefits to Employees

1. Risingpricesandcostoflivinghavebroughtaboutincessantdemandforprovisionofextrabenefittotheemployees.

2. Employerstoohavefoundthatfringebenefitspresentattractiveareasofnegotiationwhenlargewageandsalaryincreasesarenotfeasible.

3. As organizations have developed or elaborated fringe benefits programmes for theiremployees,greaterpressurehasbeenplaceduponcompetingorganizationstomatchthesebenefitsinordertoattractandkeepemployees.

4. Recognitionthatfringebenefitsarenon-taxablerewardshasbeenmajorstimulustotheirexpansion.


Notes


5. Rapidindustrialization,increasinglyheavyurbanizationandthegrowthofacapitalisticeconomy have made it difficult for most employees to protect themselves against theadverse impact of these developments. Since itwasworkerswhowere responsible forproduction,itwasheldthatemployersshouldacceptresponsibilityformeetingsomeoftheneedsof theiremployees.Asaresult,somebenefitsandservicesprogrammeswereadoptedbyemployers.

6. Thegrowingvolumeoflabourlegislation,particularlysocialsecuritylegislation,madeitimperativeforemployerstoshareequallywiththeiremployeesthecostofoldage,survivoranddisabilitybenefits.

7. The growth and strength of trade unions have substantially influenced the growth ofcompanybenefitsandservices.

8. Labourscarcityandcompetitionforqualifiedpersonnelhasledtotheinitiation,evolutionandimplementationofanumberofcompensationplans.

9. Themanagementhasincreasinglyrealizeditsresponsibilitytowardsitsemployeesandhascometotheconclusionthatthebenefitsofincreaseinproductivityresultingfromincreasingindustrializationshouldgo,atleastpartly,totheemployeeswhoareresponsibleforit,sothattheymaybeprotectedagainsttheinsecurityarisingfromunemployment,sickness,injuryandoldage.Companybenefits-and-servicesprogrammesareamongsomeofthemechanismswhichmanagersusetosupplythissecurity.

Task Somecompanieshaveapolicyofselectivelymatchingexternalofferstopreventemployees from leaving the company.What are the pros and cons of such a policy?Examine.

8.7.6 Types of Fringe Benefits

ThefringebenefitsofferedbyvariousorganisationsinIndiamaybebroadlyclassifiedintofivecategories. These are discussed below:

Payment for Time not Worked

Thiscategoryincludes:(a)hoursofwork,(b)paidholidays,(c)shiftpremium,(d)holidaypayand (e) paid vacation.

1. Hours of work: Section51oftheFactoriesAct,1948,specifiesthatnoadultworkershallberequiredtoworkinafactoryformorethan48hoursinanyweek.Section54oftheActrestrictstheworkinghoursto9onanyday.Insomeorganisations,thenumbersofworkinghoursarelessthanthelegalrequirements.

2. Paid holidays: AccordingtotheFactoriesAct,1948,anadultworkershallhaveweeklypaidholidays,preferablySunday.Someorganisationsallowtheworkerstohavetwodays’holidaysinaweek.

3. Shift premium: Companiesoperatingsecondandthirdshifts,payapremiumtotheworkerswhoarerequiredtoworkduringtheoddhour’sshift.

4. Holiday pay: Generallyorganisationsofferdoublethenormalrateofthesalarytothoseworkers,whoworkduringholidays.


Notes


5. Paid vacation: Workers in manufacturing, mining and plantations who worked for 240daysduringacalendaryearareeligibleforpaidvacationat therateofonedayforevery20daysworkedincaseofadultworkersandattherateofonedayforevery15daysworkedincaseofchildworkers.

Employee Security

Physicalandjobsecuritytotheemployeeshouldalsobeprovidedwithaviewtoensuresecuritytotheemployeeandhisfamilymembers.ThePaymentofWagesAct,1936,theMinimumWagesAct,1948,thePaymentBonusAct,1965,provideincomesecuritytotheemployees.

1. Retrenchment compensation: TheIndustrialDisputesAct,1947,providesforthepaymentofcompensation incaseof layoffandretrenchment.Thecompensation is tobepaidattherateof15dayswageforeverycompletedyearofservicewithamaximumof45dayswage inayear.Workers are eligible for compensationeven in caseof closingdownofundertakings.

2. Lay off compensation: Incaseoflayoff,employeesareentitledtoacompensationattherateequalto50%ofthetotalofthebasicwageanddearnessallowancefortheperiodoftheirlayoffexceptforweeklyholidays.Layoffcompensationcannormallybepaidupto45daysinayear.

Safety and Health

InIndia,theFactoriesAct,1948stipulatedcertainrequirementsregardingworkingconditionswithaviewtoprovidesafeworkingenvironment.Theseprovisionsrelatetocleanliness,disposalofwaste and effluents, ventilation and temperature, dust and fume, artificial humidification,over-crowding,lighting,drinkingwater,latrine,urinalsandspittoons.

Workmen’s compensation: Workmen’s Compensation Act, 1923 is intended to meet thecontingencyofinvalidityanddeathofaworkerduetoanemploymentinjuryoranoccupationaldiseasespecifiedunder theActat thesole responsibilityof theemployer.TheActcovers theemployeeswhosewagesarelessthan`500permonth.Dependantsoftheemployeeareeligibleforcompensationincaseofdeathoftheemployee.

Health benefits: Today,variousmedicalserviceslikehospital,clinicalanddispensaryfacilitiesareprovidedbyorganisationsnotonlytoemployeesbutalsototheirfamilymembers.

EmployeesStateInsuranceAct,1948,isapplicabletoallfactories,establishmentsrunningwithpowerandemploying20ormoreworkers.Employeesintheseconcernsandwhosewagesdonotexceed ` 1,000permonthareeligibleforbenefitsundertheAct.BenefitsunderthisActinclude:

1. Sickness benefit: Insured employees are entitled to get cash benefit for amaximum of 56daysinayearunderthisbenefit.

2. Maternity benefit: Insuredwomenemployeesareentitledtomaternityleavefor12weeks(sixweeksbeforethedeliveryandsixweeksafterthedelivery)inadditiontocashbenefitof75paiseperdayortwiceofsicknessbenefit,whicheverishigher.

3. Disablement benefit: Insured employees,who aredisabled temporarily orpermanently(partialortotal)duetoemploymentinjuryand/oroccupationaldiseasesareentitledtogetthecashbenefitunderthishead.

4. Dependant’s benefit: Ifaninsuredpersondiesasaresultofanemploymentinjurysustainedasanemployee,hisdependantswhoareentitledtocompensationundertheAct,shallbeentitledtoperiodicalpaymentsreferredtoasdependant’sbenefit.


Notes


5. Medical benefit:Thisbenefit shallbeprovided toan insuredemployeeor toamemberofhisfamilywherethebenefitisextendedtohisfamily.Thisbenefitisprovidedinthefollowingforms:

(a) out-patient treatment, or attendance in a hospital, dispensary, clinic or otherinstitutions;

(b) byvisitstothehomeoftheinsuredperson;or

(c) treatmentasin-patientinahospitalorotherinstitution.

Welfare and Recreational Facilities

Welfareandrecreationalbenefitsinclude:(a)canteens,(b)consumersocieties,(c)creditsocieties,(d)housing,(e)legalaid,(f)employeecounseling,(g)welfareorganisations,(h)holidayshomes,(i)educationalfacilities,(j)transportation,(k)partiesandpicnicsand(l)miscellaneous.

1. Canteens: Section46oftheFactoriesAct,1948,imposesastatutoryobligationtoemployerstoprovidecanteensinfactoriesemployingmorethan250workers.Foodstuffsaresuppliedatsubsidizedpricesinthesecanteens.

2. Consumer stores: Mostof the largeorganisations located far from the townssetup theconsumer stores in the employees’ colonies and supply all the necessary goods at fairprices.

3. Credit societies: Some organisations encourage employees to form cooperative creditsocietieswithaview to fosteringself-help rather thandependinguponmoney lenders,whereassomeorganisationsprovideloanstoemployeesdirectly.

4. Housing:Mostof theorganisationsbuiltquartersnearer to factoryandprovidedcheapanddecenthousingfacilitiestotheiremployees,whilstafeworganisationsprovideand/orarrangeforhousingloanstoemployeeandencouragethemtoconstructhouses.

5. Legal aid: Organisationsalsoprovideassistanceoraidregardinglegalmatterstoemployeesasandwhennecessarythroughcompanylawyerorotherlawyers.

6. Employee counselling: Organisationsprovidecounsellingservicetotheemployeeregardingtheirpersonalproblemsthroughprofessionalcounsellors.Employeecounsellingreducesabsenteeism,turnover,tardiness,etc.

7. Welfare organisations, welfare officers: Toprovidealltypesofwelfarefacilitiesatoncentreandappointwelfareofficerstoprovidethewelfarebenefitcontinuouslyandeffectivelytoallemployeefairly.

8. Holiday homes: As a measure of staff, a few large organisations established holidayhome at a number of hill stations, health resort and other centreswith low charges ofaccommodation,soastoencourageemployeestousethisfacilitiesforrest.

9. Educational facilities:Educational facilities includereimbursementof fee,settingupofschools, colleges, hostel. Further, the organisations provide rooms and libraries for thebenefitofemployees.

10. Transportation: Companiesprovideconveyance facilities to their residence to theplaceofworkasmostoftheindustriesarelocatedoutsidetownandallemployeesmaynotgetquarterfacility.

11. Parties and picnics: Companiesprovidethesefacilitieswithaviewtoinculcatingasenseofassociation,belongingness,opennessandfreedomamongemployees.


Notes


Old Age and Retirement Benefits

1. Provident fund:ProvidentFundSchemeoftheactprovidesformonetaryassistancetotheemployeesand/ortheirdependantsduringpostretirementlife.Employeesinallfactoriesunder Factories Act, 1948, are covered by the Act. Both the employee and employercontribute to the fund.Theemployeesonattaining15yearsofmembershipareeligiblefor100%ofthecontributionswithinterest.Generally,theorganisationspaytheProvidentFund amountwith interest to the employee on retirement or to the dependants of theemployee,incaseofdeath.

2. Pension:Employee’sFamilyPensionScheme,1971,providesforaFamilyPensiontothefamilyofdeceasedemployeeasperthefollowingrates:

Pay for month Rate Rs 800 or more

12% of the basic subject to a maximum of Rs 150 as monthly pension.

More than Rs 200 but less than Rs 800 15% of the basic subject to a maximum of Rs 96 and a minimum of Rs 60 as monthly pension.

Rs 200 or less 30% of the basic subject to a minimum of Rs 60 as monthly pension.

Table 8.1: Pension Rates

Thisschemealsoprovidesforthepaymentofalumpsumamountof`4,000toanemployeeonhisretirementasretirementbenefitandalumpsumamountof`2,000intheeventofdeathofanemployeeaslifeinsurancebenefits.

1. Deposit linked insurance: Under this scheme, if amemberof theEmployeesProvidentFunddieswhileinservice,hisdependentswillbepaidanadditionalamountequaltotheaveragebalanceduringthelastthreeyearsinhisaccount.(Theamountshouldnotbelessthan `1,000atanypointoftime).

2. Gratuity:Itispayabletoalltheemployeeswhorenderaminimumcontinuousserviceoffiveyearswiththepresentemployer.Itispayabletoanemployeeonhissuperannuatingoronhisretirementoronhisdeathordisablementduetoaccidentordisease.Thegratuitypayabletoanemployeeshallbeattherateof15dayswageforeverycompletedyearofserviceonpartthereofinexcessofsixmonths.Here,thewagemeanstheaverageofthebasicpaylastdrawnbytheemployee.Themaximumamountofgratuitypayabletoanemployeeshallnotexceed20months’wage.

3. Medical benefit: Someofthelargeorganisationsprovidemedicalbenefitstotheirretiredemployeesandtheirfamilymembers.Thisbenefitcreatesfeelingofpermanentattachmentwiththeorganisationtotheemployeesevenwhiletheyarenotinservice.

Fringebenefitsareoneof themeans toensure,maintainand increase thematerialwelfareofemployees.

Self Assessment

Fillintheblanks:

14. The term,………………, refers to various extra benefits provided to the employees, inadditiontothecompensationpaidintheformofwageorsalary.

15. ………………ispayabletoalltheemployeeswhorenderaminimumcontinuousserviceoffiveyearswiththepresentemployer.


Notes


16. Labour scarcity and competition for qualified personnel has led to the ………………,………………and………………ofanumberofcompensationplans.

17. Fringebenefitsareoneofthemeanstoensure,maintainandincreasethe………………ofemployees.

Case Study Shrunken Pay Cheque

ItwaspaydayandSushmawaslookingforwardtoreceivinghercheque.Shewouldfinally have enough money to buy that colour television set she was saving for.However,shewasunpleasantlysurprisedwhensheopenedtheenvelope.Theamount

ofthechequewaslessthanusual.Sushmaknewthatshehadbeenreceivingmorethantheamountspecifiedforherclassificationinthecontract,butthishigherratehadbeengrantedtoherbecauseofsomespecializedworkshehadpreviouslydone.AnoticeattachedtoherpayslipadvisedSushmathatshewouldreceivethecontractualratefromnowon.

SushmainformedherUnionSecretaryofthenotice,andheadvisedhertofileagrievanceimmediately. “Why am I being demoted?” Sushma asked theHRManager during thegrievancemeeting thenextday.“You’renotbeingdemoted,” theHRManagerreplied.“The companyhas always retained solediscretion tograntmerit increases and to takethemaway.”

Thedisputewas brought before conciliationby theUnion.Both theCompany and theUnion foundsupport for their arguments inaprovision that states that “theCompanyshallcontinuetoexerciseitsrighttopayanyemployeewagesorotherremunerationinexcessoftheminimumamountshereinspecified.”

Questions

1. CanSushmaclaimhigherwagesonherclassifiedsalary?

2. Isthemanagementrightinabruptlystoppinghigherrateofpay?Givereasons.

3. Istherearealindustrialdisputeinthepresentcase?

8.8 Summary

Compensationiswhatemployeesreceiveinexchangefortheirwork.zz

Theoutcomesofpaydissatisfactionmaydetractfromtheorganisation’sproductivityandzz

suggestadeclineinthequalityofworklife.

Poorly compensated jobs can lead to absenteeism and other forms of employeezz

withdrawal.

Highcompensationcostsreducethefirm’scompetitiveness.zz

Thebalancebetweenpaysatisfactionandorganizationalcompetitivenessunderliesmostzz

ofthehumanresourcedepartment’scompensationefforts.

Compensationadministration intendstodevelopthe lowest-costpaystructure thatwillzz

notonlyattract,inspireandmotivatecapableemployeesbutalsobeperceivedasfairbytheseemployees.

ThebenefitsandservicesofferedbyvariousorganisationsinIndiamaybebroadlyputintozz

fivecompartments.


Notes


Paymentfortimenotworked,employeesecurity,safetyandhealth,welfareandrecreationzz

facilitiesandoldageandretirementbenefits.

Organisationsfacemanychallengeswhiledecidingonremunerationofaemployeezz

8.9 Keywords

Benefit:Anindirectrewardgiventoanemployeeorgroupofemployeesasapartoforganisationalmembership.

Compensation: It refers to thefinancial andnon-financial rewards to the employees for theirservicesrenderedtothecompany.

Deposit Linked Insurance: Underthisscheme, ifamemberof theEmployeesProvidentFunddieswhile in service,hisdependentswillbepaidanadditionalamountequal to theaveragebalanceduringthelastthreeyearsinhisaccount.

Earnings:Totalamountofremunerationreceivedbyanemployeeduringagivenperiod.

Fringe Benefits: The term, fringe benefits, refers to various extra benefits provided to theemployees,inadditiontothecompensationpaidintheformofwageorsalary.

Gratuity:Itispayabletoalltheemployeeswhorenderaminimumcontinuousserviceoffiveyearswiththepresentemployer.

Pay Equity:Anemployee’sperceptionthatcompensationreceivedisequaltothevalueofworkperformed.

Pay Grades:Groupsofjobswithinaparticularclassthatarepaidthesamerate.

Salaries:Remunerationpaidtotheclericalandmanagementpersonalemployedonamonthlyoryearlybasis.Howeverthedistinctionbetweenwagesandsalariesneednotbeobservedinactualusage.Bothmaymeanremunerationpaidtoanemployeeforservicesrendered.

Variable Pay:Tyingpaytosomemeasureofindividual,groupororganisationalperformance.


1. If we pay predominantly for jobs rather than people, how can we reward the trulyexceptionalperformingemployee?

2. ‘If the employees believe that subjectivity and favouritism shape the pay system inan organisation, then it does not matter that the system was properly designed andimplemented’.Discuss.

3. Sinceemployeesmaydifferintermsoftheirjobperformance,woulditnotbemorefeasibletodeterminethewagerateforeachemployeeonthebasisofhisorherrelativeworthtotheorganisation.Analysethestatement.

4. Dosmallcompaniesneedtodevelopapayplan?WhyorWhynot?

5. One expert argues that external equity should always be the primary concern incompensation,notingthatitattractsthebestemployeesandpreventsthetopperformersfromleaving.Doyouagree?Why/Whynot?

6. What three general types of benefitsdo you thinkmostmedium-sized and largefirmsprovidevoluntarily?

7. What is meant when it is said that many employees view benefits and services asentitlements?Howcanemployersmakeemployeesrealisethatbenefitsandservicesmustbeearned?


Notes


8. Whatbenefitsandservicesaremostimportanttotoday’sincreasinglydiverseworkforce?Why?

9. Whatdoyou thinkattract employeesmore–highbasicpayand lowvariablesorhighvariablesandlowbasicandwhy?

10. Whichisabettermode–payopennessorsecrecyandwhy?

11. Whydotheorganizationsneedtoworkonemployeebenefitprogrammes?


1. False 2. True

3. True 4. True

5. False 6. False

7. False 8. False

9. False 10. True

11. True 12. False

13. True 14. Fringebenefits

15. Gratuity 16. initiation,evolution,implementation

17. materialwelfare










Online links http://www.citehr.com/68382-what-definition-compensation-management.html

http://www.successfactors.com/compensation-management/

http://managementcite.com/COMPENSATION-MANAGEMENT-Thread

h t tp ://www. icmr india .org/courseware/In t ro%20to%20Hrm/Compensation%20Management%20Chap12.htm


Notes


Unit 9: HRD

CONTENTS

Objectives

Introduction

9.1 Need and Scope

9.1.1 HRD at Macro and Micro Level

9.2 HRDClimate

9.2.1 ComponentsofHRDClimate

9.2.2 ImportanceofHRDClimate

9.3 HRDPracticesinIndianOrganizations

9.3.1 HRD and the LPG Era

9.4 QualityofWorkLife

9.4.1 TheHRDepartment’sRole

9.4.2 QWLOverview

9.4.3 QWLthroughEmployeeInvolvement

9.4.4 ApproachestoQWLandEI

9.5 EmployeeEmpowerment

9.6 Career Planning

9.6.1 Career Counselling

9.6.2 EmployeeSelf-assessment

9.6.3 EnvironmentalAssessment

9.6.4 Career Counselling Process

9.6.5 CareerDevelopment

9.6.6 HRSupportedCareerDevelopment

9.6.7 Feedback

9.6.8 BenefitsofCareerPlanningandDevelopment

9.6.9 CareerProblems

9.7 KnowledgeManagement

9.7.1 KnowledgeManagement:ACross-disciplinaryDomain

9.7.2 DifficultiesinKnowledgeManagement

9.7.3 TypesofKnowledgeManagement

9.8 Mentoring and Reverse Mentoring

9.8.1 Reverse Mentoring

9.9 Summary

9.10 Keywords



Unit 9: HRD

Notes


Objectives


DefinethetermHRDzz

Discuss the need and scope of HRDzz

DescribetheHRDclimatezz

UnderstandtheHRDpracticesinindianorganizationszz

Explaintheconceptsofqualityofworklife,employeeempowermentandcareerplanningzz

Realizetherelevanceofknowledgemanagement,mentoring&reversementoringzz

Introduction

HumanResourceDevelopment(HRD)isapositiveconceptinhumanresourcemanagement.Itisbasedonthebeliefthataninvestmentinhumanbeingsisnecessaryandwillinvariablybringinsubstantialbenefitstotheorganisationinthelongrun.Itaimsatoveralldevelopmentofhumanresourcesinordertocontributetothewellbeingoftheemployees,organisationandthesocietyat large.

HRDisrootedinthebeliefthathumanbeingshavethepotentialtodobetter.It,therefore,placesapremiumonthedignityandtremendouslatentenergyofpeople.Wherebalancesheetsshowpeopleonthedebitside,HRDseekstoshowthemasassetsonthecreditside.

HRDisaprocessbywhichtheemployeesofanorganizationarehelpedinacontinuousandplannedwayto:

(1) Acquireorsharpencapabilitiesrequiredtoperformvariousfunctionsassociatedwiththeirpresentorexpectedfutureroles;

(2) Develop their general capabilities as individuals and discover and exploit their own inner potentialfortheirownand/ororganizationaldevelopmentpurposes;

(3) Developanorganizationalcultureinwhichsuperior-subordinaterelationships,teamworkandcollaborationamongsubunitsarestrongandcontributetotheprofessionalwellbeing,motivationandprideofemployees.

In short,HRD aims at helping people to acquire competencies required to perform all theirfunctionseffectivelyandmaketheirorganizationdowell.

9.1 Need and Scope

People are the real assets of an organization. If treatedwell, they can take organizations tocommandingheights. Twoplus two couldbe four or even ten.Organizations are, generally,drivenbyasetofpre-determinedgoals.Theyemployphysical,financialandhumanresourcesinordertoachievethegoals.Thesegoalshavenomeaningunlesspeopleunderstandtheunderlyingphilosophy, translate them into concrete action plans andput their heartwhile realizing thetargets.Organizations,thus,dependonpeoplefortheirsurvivalandgrowth.Inasimilarway,peopleneedorganizations.Thevastmajorityofpeopleworktosupportthemselvesandtheirfamilies.Butpeoplework formany reasonsother thaneconomic security.For example, theymayalsoworktokeepbusyandfeeluseful,tocreateandachievesomething.Theywanttogainrecognitionandachievestatusortotestandstretchtheircapabilities.Tomeetthesemultifariousneeds, people and organizations join hands. Unfortunately, this union seldom approachesperfection.Organizationsfaceseveralproblemsinmeetingtheirgoals,andlikewise,employees


Notes


reportsomeproblemsintheirattemptstobeproductiveandefficient intheir jobsandtofeelsatisfiedintheirworklives.Thechallengeofhumanresourcemanagementistominimisetheseobstaclesandproblemsandimprovethecontributionsmadebypeopletoorganizations.

HRD,basically,aimsatdeveloping:

thecapabilitiesofeachemployeeasanindividual;zz

thecapabilitiesofeachindividualinrelationtohisorherpresentrole;zz

thecapabilitiesofeachemployeeinrelationtohisorherexpectedfuturerole(s);zz

thedyadicrelationshipbetweeneachemployeeandhisorheremployer;zz

theteamspiritandfunctioningineveryorganizationalunit;zz

collaborationamongdifferentunitsoftheorganization;zz

theorganization’soverallhealthandself-renewingcapabilities,which,inturn,increasethezz

enablingcapabilitiesofindividuals,dyads,teamsandtheentireorganization.

9.1.1 HRD at Macro and Micro Level

HRDasstatedearlierismainlyconcernedwithdevelopingthecompetenciesofpeople.Whenwecallitasapeople-orientedconceptthenseveralquestionscometomindlikeshouldthepeoplebedevelopedinthelargerandnationalcontextorinthesmallerinstitutionalcontext?Isitdifferentat themacro level andmicro level?As things stand now,HRD applies to both institutional(micro)aswellasnational(macro)issues.Themainobjective,however,istodevelopthenewercapabilities inpeoplesoas toenable themto tacklebothpresentandfuturechallengeswhilerealizingorganisationalgoals.However,itisusefulbothatmacroandmicrolevels.

Macro Level: At themacro levelHRD is concernedwith the development of people for thenation’swellbeing.Ittakeshealth,capabilities,skills,attitudesofpeoplewhicharemoreusefultothedevelopmentofthenationasawhole.Whilecalculatingthenationalincomeandeconomicgrowth, theprospectiveHRDconceptexamines the individuals’potentialities, theirattitudes,aspirations, skills, knowledge, etc., and establishes a concrete base for economic planning.However,HRD’scontributionatmacrolevelhasnotgainedpopularityasyet.

Micro Level:HRDhasconcernforgrassrootdevelopmentintheorganisations.Smallwonder,then,thatHRDwaswellreceivedbycompanies’managementsastheyrealiseditsimportanceand foresaw its future contribution for the individual and organisational development.Generally, HRD at micro level talks of the organisations’ manpower planning, selection,training,performanceappraisal,development,potentialappraisal,compensation,organizationaldevelopment,etc.HRD’sinvolvementinalltheseareasismainlywithanobjectivetodevelopcertainnewcapabilitiesinpeopleconcernedtoequipthemtomeetthepresentjobchallengesandtoacceptfuturejobrequirements.

Thetraditionalpersonnelfunctionisaserviceorientedactivity,respondingtotheneedsoftheorganizationasandwhentheyarise.Ontheotherhand,HRDisaproductivefunctionwhichdoesnotmerelyrespondtoorganizationalrequirementsbutanticipatesthemandpreparesthepeopleandtheorganizationtofacefuturechallengeswithconfidence.

HRDiswiderinscopeasittriestodevelopthewholeorganizationinsteadoffocusingattentionon people alone. Instead of concentrating onmaintenance factors (wages, incentives, day-to-dayplans, operatingprocedures, etc.) it tries to focus onmotivating factors (job enrichment,developingpotentialitiesofpeople,creatingautonomousworkgroups,fosteringinnovationandcreativity,developingtrustetc.).Personnelfunction,traditionally,isviewedastheprimaryjobofpersonneldepartment.HRD,however,istheresponsibilityofallmanagersintheorganization.

Unit 9: HRD

Notes


The personnel function views higher morale and improved job satisfaction as the causesof improved performance. HRD, on the other land, regards “job challenges, creativity andopportunitiesfordevelopmentasthemainmotivatingforces.

Notes HRD Matrix

The HRD Matrix shows the interrelationships between HRD instruments, processes,outcomesandorganisationaleffectiveness.

1. HRD instruments:Theseincludeperformanceappraisal,counselling,roleanalysis,potentialdevelopment,training,communicationpolicies,jobrotations,rewards,jobenrichmentprogrammes,etc.Theseinstrumentsmayvarydependingonthesizeoftheorganisation,theinternalenvironment,thesupportandcommitmentofthetopmanagement,thecompetitivepolicies,etc.

2. HRD processes: TheHRDinstrumentsleadtothegenerationofHRDofprocesseslikeroleclarity,performanceplanning,developmentclimate,risk-taking,dynamisminemployees.SuchHRDprocessesshouldresultinmorecompetent,satisfiedandcommittedpeoplethatwouldmaketheorganisationgrowbycontributingtheirbestto it.

3. HRD outcomes:HRDinstrumentsandprocessesmakepeoplemorecommittedandsatisfied,wheretheytendtogivetheirbesttotheorganisationenthusiastically.

4. Organizational effectiveness: Dimensions: Such HRD outcomes influence theorganisationaleffectiveness,whichinturn,dependsonanumberofvariableslikeenvironment,technology,competitors,etc.

9.2 HRD Climate

“Organizationalclimate isasetofcharacteristicsofanorganizationwhicharereferred in thedescriptionsemployeesmakeofthepolicies,practicesandconditionswhichexistintheworkingenvironment”.

After analyzing Human Resource and Development we can simply stated that, HRD is theprocessofhelpingpeopletoacquirecompetencies.

Anorganizationbecamedynamicandgrowthorientediftheirpeoplearedynamicandpro-active.Throughproperselectionofpeopleandbynurturingtheirdynamismandothercompetenciesanorganizationcanmaketheirpeopledynamicandpro-active.Tosurviveit isveryessentialforanorganizationtoadoptthechangeintheenvironmentandalsocontinuouslypreparetheiremployeestomeetthechallenges;thiswillhaveapositiveImpactontheorganization.

Did u know? Meaning of HR+D+Climate

HRmeansemployeesinorganization,whoworktoincreasetheprofitfororganization.

DisforDevelopment,itisacquisitionofcapabilitiesthatareneededtodothepresentjob,or the future expected job.

Now,climateisanoverallfeelingthatisconveyedbythephysicallayout,thewayemployeesinteractandthewaymembersoftheorganizationconductthemselveswithoutsiders.


Notes


9.2.1 Components of HRD Climate

Theorganizationalclimateconsistsof:-

1. Organizational Structure:Anorganization’sstructureisactuallya ‘snapshot’ofaworkprocess,frozenintimesothatitcanbeviewed.Thestructureenablesthepeople’senergytobefocusedtowardsprocessachievementandgoalachievement.Employeemusthaveacleardefinitionofnotonlytheworkstructurebutalsotheroleusedtoorganizethework.Ifthestructureandtheroleisnotclear,peoplewillnotknowwhattheworkprocessis,whoisresponsibleforwhat,whomtogoforhelpanddecision,andwhocanAssistinsolvingproblemsthatmayarise.

2. Organizational Culture: Organizational culture is the pattern of beliefs, knowledge,attitudes,andcustomsthatexistswithinanorganisation.Organizationalculturemayresultinpartfromseniormanagementbeliefsorfromthebeliefsofemployees.Organizationalculturecanbesupportiveorunsupportive,positiveornegative. It canaffect theabilityorwillingnessofemployeestoadaptorperformwellwithintheorganisation.Themosteffectivework culture is one that supports the organizationsHR strategies by aligningbehaviors,processesandmethodswiththedesiredresults.Itisnotjustachievingresultsbutthemethodsthroughwhichtheyareachievedthatarecriticaltolong-termsuccess.

BeforeanyHRstrategyisdesignedtheremustbeaclearunderstandingoftheorganisation,itscurrentvalues,itsstructure,itspeopleaswellasitsgoalsandvisionforthefuture.

3. HRD Processes: TheHRsystemofanorganisationshouldbecomprehensiveenoughtotakecareofemployeesfromthetimetheyjointillthetimetheyleaveHR.Theirdemandsmustnotbeignored,butafeelingofbelongingnessbecreated.Processshouldbeveryclearand impartial, so that employee’s faith inorganization.Fromrecruitment to retirementwholeprocessshouldbeaccordingtoemployeesexpectationandabilityofemployer.

9.2.2 Importance of HRD Climate

1. It givesHRprofessionals time to anticipate opportunities inHRarea and time toplanoptional responses to these opportunities.

2. ClimatefactorsofHRareprimeinfluencingelementsofchangeinHRstrategy.

3. IthelpsHRprofessionalstodevelopanearlywarningsystemtopreventthreatsemergingoutfromHRscenario,ortodevelopstrategies,whichcanturnathreat.

4. Itenablestheentryofthelatestnational/internationalHRdevelopments.

5. Itformsabasisofaligningtheorganizationstrengthstothechangesintheenvironment.

Self Assessment


1. Thevastmajorityofpeopleworktosupportthemselvesandtheirfamilies.

2. Humanresourcesaretheleastimportantassetsinanorganisation.

3. HRDisamulti-disciplinaryconcept.

4. Evaluationisauniversalpartoftrainingprogrammes.

5. Competentandmotivatedemployeesareessentialfororganisationalsurvivalgrowthandexcellence.

Unit 9: HRD

Notes


6. Viewedbroadly,thedistinctionbetweentrainingforapresent jobanddevelopmentforfuture ones is blurred.

7. Peoplerarelyfudgecredentials.

8. Good job candidates can usually be hired fairly quickly because they are so obviouslygood.

9. International experience is an automatic ticket to career development in mostorganisations.

10. Trainingprogrammesshouldnotbedesignedasquickfixesfororganisationalproblems.

9.3 HRD Practices in Indian Organizations

TheissueofHRMpracticesinlargebusinessorganizationswasexploredtodeterminewhetherorganizationswerepractisingtraditionalormodernphilosophyofmanagement.Thefindingspertaining to private sector organizations reflected that Indian organizationswere practisingtraditional philosophy of management. The traditional philosophy of management dependsprimarilyuponeconomicmotivation.

Notes Employees are the New Corporate Heroes

Peoplearecentraltoanorganisation.Toachievecorporategoals,theyhavetoputtheirheartintoeverythingandworkwithzeal,enthusiasm,dedicationandcommitment.Withoutpositiveandcreativecontributionsfrompeople,organizationalgoalsmayremainpiousdreams,existingonlyonpaper.Theknowledge,skills,experiencepossessedbyemployeesandtheirwhole-heartedsupporttoorganizationalwork,inmostcases,wouldspellthedifferencebetweensuccessandfailure.Theorganization’stalentpoolisitsmostvaluablecorporate resource and is theprimary sourceof competitive advantage.Thequalityofhumancapital(i.e.,collectiveknowledge,skills,abilitiesandattitudesoftotalworkforcewithinanorganisation)anditseffectivemanagement(byplacingtherightmanontherightjob)wouldgoa longwayinenhancingproductivityandreducingcosts. Inknowledgebased industries,humanresourcescouldmakeorbreakacompany.Most importantly,the knowledge, skills and attitudes of workforce cannot be duplicated or imitated bycompetitors.Theyremainwithpeopleand,therefore,becomeasourceofrarecompetitivestrengthwhen the organisation offers the right kind of environment and atmosphere.Inorganizationswhere fairness,equity, justiceandautonomyarefiercelyguardedandpeoplearetreatedwithrespect,loveandaffection—workbecomesfunandpeoplecomeoutwithoutstandingresults,surpassingallmathematicalcalculations.Oneplusonecouldbetwo,twentyoreventwohundred!Oneman’sdream—itcouldbeRatanTata,AnandMahindraorK.M.Birla–becomesalifeanddeathstruggleformany.TheresultcouldbeanIndica,aNanooraScorpio–theresultofoutstandingcontributionsfromordinarypeopletryingtoconvertapassion/dreamintoaconcretereality.Togaintheedge,however,theorganisationneedstoinvestinitshumanresources—throughtraininganddevelopmentprogrammesandcreatinggrowthopportunitieswithinthecompanyfromtimetotime.Thecompetencygapsofemployeesneedtobeidentifiedandbridgedthroughappropriatetraininganddevelopmentprogrammes.HRpolicies andprogrammesmustbe in syncwith the business plans of the organisation and with each other.


Notes


9.3.1 HRD and the LPG Era

The LPG (liberalization, privatisation, and globalization) era changed the rules of the gamecompletely in India (Sadri;T.V.Rao, 2007;R.K.Gupta 2006)Companiesdonot compete anymorewith their local counterparts in termsofproducts, prices, quality, service etc. They arecompelledtooperateinawellintegratedglobalmarketplacewhereproductpricesaregovernedbyfactorswhicharebeyondthecontrolofanyoneplayer.Everycompanyisforcedtoembracelatesttechnology,hirethebesttalent,offerthebestqualityproductsandservicesateconomicalpricesanddoeverythingpossibletoretainbothcustomersandemployees.Bestqualitydeliveredto customer—atanamazing speed,preferably aheadof competition—tanaffordableprice isthe new corporate mantra for survival. You have to be the best always in terms of price,quality, service, speedetcandwincustomersbymovingcloser to theirhearts.Toeconomisefurther,outsourcingcouldbeoneway.Toimprovecommunicationandservicequality,aflatorganisationstructurecouldbeembraced.Newproductdevelopmentsand innovationsmustpropel the company to greater heights every year. Employeesmust be exposed to the latesttechnologies and, to this end; raining and developmental efforts must be put in place. HRpolicies,practicesandmechanismsmustmoveinsyncwithcorporategoalsandstrategy.Thewholeeffortmustleadto:(i)buildingcriticalorganisationalcapabilities(ii)enhancingemployeesatisfaction, and (iii) keeping the customers happy by delivering value formoney (excellentproductsataffordableprices—always)HRprofessionalshavetorecognisethesechallengesanddo everythingpossible toput internalmechanisms inplace so that the rhetoric—in the formofcorporateethics,values,andprinciples—isactuallygettingtranslatedintoconcreteactions.TheconceptofHRDScorecard,itmeasurestheeffectivenessandefficiencyoftheHRfunctioninproducingthoseemployeebehavioursthatareimportantforafirminachievingitsstrategicobjectivesintroducedinIndiabyT.V.Rao,wouldbehighlyusefulinmeetingthisadmirably.TheHRDscorecard indicates the level ofHRDmaturityof anorganisation and it shows theabilityofHRDsystemsandprocessesinanorganisationtocontributetoorganisations’strategy.Themodelisbasedontheassumptionthatcompetentandmotivatedemployeesarebestsuitedtodeliverhighqualityproductsandofferbest services to customersataffordablepricesandtherebykeeptheorganisation’sflagflyinghighinthemarketplace.TheHRDscorecardmeasuresthematuritylevelofanorganisationalongfourdimensionsonatenpointscale(10representsthehighestmaturitylevel,5representsamoderatematurityleveland1representstheleastlevelofmaturity).Trainedassessorsgenerallycarryouttheexercise.Therearefourbasicbuildingblocksaroundwhichthescoreisactuallycomputed:

HRD Systems maturity score:zz Through appropriate HRD mechanisms, employeecompetenciesandcommitmentcanbemeasuredsuchas:HRplanningandrecruitment,performancemanagement systems; potential appraisal systems; feedback and coachingmechanisms;training,careerdevelopment,andjobrotation;ODinterventions,HRIS,etc.

HRD Competence score:zz Here the competencies of top management, line managers,supervisors, union leaders, and blue/white collar employees are measured to seewhethertheinternalsystemsandprocessesactuallycontributetoemployeesatisfaction,competency building and customer satisfaction or not. Each group is assessed on thefollowingdimensions:thelevelofHRDskillstheypossess,attitudesandsupporttothelearningenvironment,attitudeandsupporttoHRDfunctionsandsystems.

The HRD Culture:zz QuestionnairesmeasuringHRDculturehavebeendevelopedandusedtomeasureemployeevalues,stylesetcandprocessescreatedbytheHRDtoolsbymostorganisationsnow-a-days.

Business Linkage Score:zz HowfartheHRDsystems,competenciesandculturehavebeenalignedwithoverallcorporategoalsisbeingmeasuredthroughthis.Thebusinesslinkagegoalsinclude:businessexcellence,operationalexcellence,customersatisfaction,employeemotivationandcommitment,qualityorientation,technologyadoption,costconsciousnessandcosteffectiveness,etc.

Unit 9: HRD

Notes


The top managers of the public sector and their public documents show belief in modernphilosophy of management; however, the survey results project a blurred picture of thephilosophyofmanagement.Ithasalsobeenobservedthatmanagersoftenfindthemselves“livingindualworld: therealworldandtheworldofofficiallysanctioned ideology.Thus, they talkabout‘empowerment’buthabituallyhoardpowerortheyproclaimthattheyare‘reengineering’theirorganizationswhentheyarereallyjustfiringafewofthelacklustreworkers.”Managerialbeliefscanbebetterunderstoodbyhavingaknowledgeofculturaltraditions.Theyfelttheneedtoconsiderbotheconomicandculturaltraditionsastheywerebroadlytakenasdeterminantsofmanagerialphilosophies,values,andtheconceptofman.

Lookingback,theoriginsofthemodernIndianorganizationcanbetracedtotheBritishrule.TheBritishwerethefirsttointroducetheWesterntypeofadministrationinIndia.

Hence, emotional aloofness combined with high control of subordinates characterized theBritishstyleofIndianmanagement.ThiswasthemodelthatIndianmanagersinheritedfromtheBritish.Organizationswouldhavetodesignmanagerialphilosophywhichissensitivetohumanexistence.Themanagerialphilosophy in theorganizationhasan impacton theorganizationsof the future.HR concepts that get packaged alongwithmodernmanagerial philosophy arelikelytorevolutionizetheworkplace.Thebottomlineisthatpeoplewanttobecaredforandrespected.

On their part, organizations want commitment and integrity. A successful combination ofcommittedpeopleandabenevolentorganizationwouldbebeneficial in the longrun.This ispossibleonlyiforganizationsadoptHRpracticeswithmodernmanagerialphilosophy.

Case Study HRD Scheme: A Bone of Contention

Innovative Technologies Limited (ITL) is a medium sized engineering companysituated at Hyderabad, manufacturing telecom equipment. Its customers wereprimarily government departments (Railways, Post and Telegraph, Department of

Telecommunications etc.) and private telecom operators in the country. The companymaderapidprogress in recent years, thanks to the rising income levels, internetboomand growth in infrastructure sector all over India. To encourage a culture of innovation andcreativity,whichisessentialforthecompany’sownsurvivalinahighlycompetitivefield, the companyhas all alongbeen encouraging its employeesnumberingover 1000mainlyengineeringgraduates,toupgradetheirknowledgeandskillsintheirownfieldsof specialization. It had always encouraged employees to go forworkshops, seminars,conferencesandevenvolunteeredtopaythetuitionfeeofemployeesiftheyareabletosecureadmissioninprestigiousInformationTechnologyandTelecommunicationSchoolsinIndiaandabroad.Withaviewtopromotemanagerialtalent internally, thecompanywantedbothengineering(600innumber)andnon-engineeringprofessions(390innumber)togoforMBA,PGDBAcoursesaswell,offeredbyreputedbusinessschools.

Sinceadmissionprocedures inmost reputedbusinessand technologyschoolsarequitetough consistingof entrance test, groupdiscussionand interview, thefieldnaturally iswideopenonlyforthecompetentandbrightpeople.Thecompany’sengineeringgraduatesinvariablygotthroughthesetestsandwerealwaysutilisingamajorportionofthefundsearmarkedbythecompanyforthispurpose.Thenon-engineeringpeople,somehow,couldnotruntheraceandgetbenefitedbythecompany’sscheme.Maybetheylackedthewill,or thequantitativeandanalytical skillsneeded toget through thecompetitiveentranceexaminations.Buttheywerereluctanttoadmitthisandinsteadtargetedtheengineeringprofessionals for their own poor show. They, in fact, requestedmanagement to revise

Contd…


Notes


(a) the guidelines, suggesting a quota system (3 from engineering and 2 from non-engineeringcategoryeveryyear,ifselectedinanybusinessschool)forselectinginternalcandidatesforeducationalbenefits.Theyevenwantedmanagementtoextendtheschemetoallemployeessecuringadmission(b)toanyprofessionalcourseonthebasisofseniority.

Meanwhile Mr Raj Pal (31) a brilliant computer professional working in the TelecomSoftwaredivisionforthepast4yearshasbeenselectedbyIIM(A)fortheirPGDBAcourse.Heisthefourthcandidatewhosecuredadmissioninbusinessschoolsin1999.Fromthenon-engineeringstream,twopersonsgotselectedbutinlesser–knownbusinessschools.

Raj Pal’s selectionnews came after the companyhasfinalised thenames of employeeswhoaregoingtobesponsoredundertheHRDschemein1999.Inadditiontopressuresfromnon-engineeringcandidateswhosenameshaveyettobefinalised,thecompanyisfacing lotof criticism from theSoftwareDivisionalsowhere seniorsareof theopinionthattheyoungprofessionalswhogetsponsoredwilleithernotreturntothecompanyorwillbegivenpreferenceaheadofseniorsincaseofinternalpromotions.Infuture,they,therefore,wantthecompanytosecureanundertakingfromsponsoredcandidatestoservethe company in the same category for at least three years before becoming eligible forpromotion.Ifthesponsoredonesdecidetoleavethecompany,theyhavetopaybackthemoneywith12%p.a.interest.

The company is not very surewhether the quota system be introduced or the presentschemeofpickingupcandidatesonthebasisofmeritshouldbeallowedtocontinue.Thegrowingpopularityoftheschemehasinfactledthemanagementtothinkaboutcertainguidelinesforitsimplementationwithoutanyoperationalproblemsinfuture.

Questions

1. Whatisthemainprobleminthecase?

2. Should the quota system be introduced while selecting people under the HRDscheme?

3. ShouldITLinsistonexecutionofa3-yearbondbytheemployeeswhoavailbenefitsundertheHRDscheme?

4. Should ITL enlarge the scope of the scheme to includeunder-graduate andnon-engineering graduate employees for taking admission in management diploma/degreecoursesofferedbyvariousnationalinstitutions?

9.4 Quality of Work Life

QualityofWorkLife (QWL)effortsaresystematicattemptsbyorganizations togiveworkersagreater opportunity to affect their jobs and their contributions to theorganization’s overalleffectiveness.Toooftenemployershavesoughtaworker’slabourbuthavenottappedhisideas.Sinceemployees’ideasoftenwerenotused,workersfeltlittleresponsibilityforthesuccessorfailureofmanagement’sunilateraldecisions.Teamworkseldomexisted.Whenitdid,itrarelybridgedthegapbetweenworkersandmanagement.Productivitysuffered.Atthesametime,anentiregenerationofworkersbeganenteringfactoriesandofficeswithdifferentworkattitudesandexpectations.ThiscombinationofeconomicnecessityandachangingworkforcehasledagrowingnumberoforganizationstoembraceQWLefforts.

More andmore employers are installingQWLefforts as away togainproductivity throughimproved employee motivation and satisfaction, reduced employee stress, improvedcommunications,andreducedresistancetochange.AproperlyexecutedQWLeffortcanalsoresultinmanyofthebenefitsassociatedwithorganizationaldevelopment.

Unit 9: HRD

Notes


9.4.1 The HR Department’s Role

TheroleoftheHRdepartmentinQWLeffortsvarieswidely;theHRdepartmentisresponsiblefor initiatinganddirectingthefirm’sQWLandproductivityefforts.Perhaps themostcrucialrole that the HR department plays is winning the support of key managers. Managementsupport—particularlytopmanagementsupport—appearstobeanalmostuniversalprerequisiteforsuccessfulQWLprogrammes.

9.4.2 QWL Overview

RichardEWalton explains quality ofwork life (QWL) in terms of eight broad conditions ofemploymentthatconstitutedesirableQWL.Theseconditions/criteriainclude:

1. Adequateandfaircompensation

2. Safeandhealthyworkingconditions

3. Opportunitytouseanddevelophumancapital.

4. Opportunityforcareergrowth

5. Socialintegrationintheworkforce

6. Constitutionalismintheworkorganisation

7. Work-lifebalance

8. Socialrelevanceofwork.

9.4.3 QWL through Employee Involvement

Oneof themost commonmethodsused to createQWL is employee involvement. EmployeeInvolvement(EI)consistsofavarietyofsystematicmethodsthatenableemployeestoparticipatein the decisions that affect them and their relationship with the organization. Through EI,employeesfeelasenseofresponsibility,evenownership,ofdecisionsinwhichtheyparticipated.Tobesuccessful,however,EImustbemorethanjustsomesystematicapproach;itmustbecomepartoftheorganization’sculturebybeingpartofmanagement’sphilosophyofmanagement.

9.4.4 Approaches to QWL and EI

Thereareavarietyofapproachestoemployeeinvolvement.Attitudesurveyfeedback,suggestionsystems,HRcommunicationssystems,profitsharingandgainsharingaresomeofthem.Eventheperformance evaluation interviews are a formof involvement. Eachof these approaches,however,isatraditionalfunctionoftheHRdepartment.Inthelastdecade,proactivedepartments,alongwithprogressivebusinessandunionleaders,increasinglyhavesoughtnewapproachestoqualityofworklifethroughemployeeinvolvement.

Some of the more commonly used approaches to attain QWL through EI are discussedhereunder:

1. Quality Circles: Qualitycirclesaresmallgroupsofemployeeswhomeetregularlywiththeircommonleadertoidentifyandsolvework-relatedproblems.

Japanfoundthattobuysufficientfoodstuffsandrawmaterialsithadtoexport.But,inthe1950sandevenintheearly1960s,“MadeinJapan”meantpoorqualitytomanybuyers.Governmentandbusinessleadersrealisedthattoimportrawgoods,toaddvalue,andtoexportrequiredproductionofqualityproductsthattheworldwouldbuy.TheconceptofqualitycontrolcircleswasborninJapanesefactorieswiththeassistanceofsuchUSexperts


Notes


asDrsDemingandJuran,intheearly1960s.ThiseffortbeganasaqualityimprovementprogrammebuthassincebecomepartoftheroutineproceduresofmanyJapanesemanagersandakeypartoftheQWLeffortinmanyJapanesefirms.

Unique Characteristics: Whatevertheyarecalled,QualityCircles(QC)areuniqueamongthemanyQWLefforts.First,membershipinthecircleisvoluntaryforboththeleader(thesupervisor)andthemembers(workers).Second,thecreationofqualitycirclesisusuallyprecededbyin-housetraining.Thentheemployeesareusuallygivenonedayofintensivetrainingprimarilyinthesameproblem-solvingtechniques.Third,thegroupispermittedtoselecttheproblemsitwantstotackle.

QC Process: After the training is completed, employees and their supervisor beginmeeting—usuallyonceaweekforanhour.Firstthesupervisorreviewsthegroundrules.Circlesareintendedtotackleproblemsinthatgroup’sareaofresponsibility.Thegroupusesbrainstormingtocreatealistofproblemsworthsolving.Then,throughdiscussion,oneofthemisselectedforfurtherstudyandresearch.Dataarecollectedabouttheproblemanalyzedtoseeifthereisapatternfromwhichcausesandeffectsmaybeidentified.Onceacausehasbeenfoundfortheproblem,thegroupdevelopsasolution.

Oncean idea ispresented, theburden ison themanagement togive thecirclea timelyauthorisation to implement the solution or an explanation as to why the suggestionis rejected. Circles usually disband when supervisors act autocratically rather thanparticipativelyorwhenupperlevelsofmanagementrepeatedlyandarbitrarilyrejectcirclerecommendations.

Facilitators and Circle Coordination: Mostorganizationswithmultiplecirclesfindthatacoordinatororafacilitatorisneeded.ThispersonmaybealinemanageroraHRspecialist.Facilitatorsneedgoodinterpersonalskills,particularlytheabilitytocommunicateandtrain.ThefirstfacilitatorusuallyreceivesfivedaysofspecialisedtrainingthroughtheQualityCirclesForumofIndia.Thesetrainingprogrammesfocusonteachingthefacilitatoraboutquality circles andhow to administer aQCeffort. Sessionson teachingand consultingskillsaretypical,too.Likewise,thefacilitatoralsoreceivesconsiderabletrainingingroupdynamicsand in theability tocoachsupervisors.Hereports to thesteeringcommittee,whichincludesthetopmanagerandstaff.

2. Socio-technical Systems: Anotherapproach toQWLefforts is theuseofsocio-technicalsystems.Socio-technicalsystemsareinterventionsintotheworksituationthatrestructurethework, theworkgroupsand the relationshipbetweenworkers and the technologiestheyusetodotheirjobs.Morethanjustenlargingorenrichingajob,theseapproachesmayresultinmoreradicalchangesintheworkenvironment.

Thisrearrangementofthesocialandtechnicalrelationshipsonthe joboffersworkersanopportunity forgreaterQWL.Ergonomics is the studyof thebio-technical relationshipsbetweenthephysicalattributesofworkersandthephysicaldemandsofthejob.Theobjectiveis to reduce thephysical andmental strain in order to increaseproductivity andQWL.Throughergonomicsandsocio-technicalapproaches towork, it ispossible tomodifyingassemblylinesandincreaseaworker’sjobcycletominimizeboredomanddissatisfaction.

3. Autonomous Work Groups: Amorecommonapproach toemployee involvement is theuseofautonomousworkgroups.Theseareteamsofworkers,withoutaformalcompany-appointedleader,whodecideamongthemselvesonmostdecisionstraditionallyhandledby supervisors. These groups ofworkers typically decide dailywork assignments, theuseofjobrotation,newemployeeorientation,trainingandproductionschedules.Theseinnovations do indicate a demand by some employers and employees formore novelsolutions to the trade-offs between efficiency and behavioural elements of job design.Improving the quality of work life may mean completely redesigning factories andworkplacestosatisfyefficiency,environmentalandbehaviouralrequirementsofjobs.

Unit 9: HRD

Notes


QWLismorelikelytoimproveasworkersdemandjobswithmorebehaviouralelements.These demands will probably emerge from an increasingly educated work force thatexpectsmore challenges andmore autonomy in its jobs—such asworker participationindecisions traditionally reserved formanagement.HRdepartmentswillplay an evenmoreimportantroleinorganisationsassocialexpectationsincreasethepressureformoreautonomy. Job rotation, enlargement, enrichment and other job-design changeswill becoming.ThetrainingofpresentworkerswilllikelyreceiveadditionalattentionfromHRdepartments,too.

4. Suggestion Systems: Suggestionssystemsareaformalmethodforgenerating,evaluatingand implementing employee ideas. If even one of these three elements ismissing, thesuggestion plan fails. All three are crucial.

Figure9.1showsthekeystepsinasuccessfulsuggestionsystem.Itbeginswiththeemployee’sideaandadiscussionwiththesupervisor.Oncethesuggestionsformiscompleted, thesupervisor reviews and signs the form, indicating awareness of the suggestion but notnecessarily approval. The suggestion system committee receives the idea and sends anacknowledgmenttotheemployeethroughcompanymail.Theideaisthenevaluatedandthedecisioniscommunicatedtotheemployee.Ifitisagoodidea,implementationfollowswiththeemployeereceivingrecognitionandusuallysomeaward.

Employeeidea

Discussion with

supervisor

Completion of form

Supervisoryreview and

sign off

Submissionto suggestion

office

Receipt and acknowl-

edgment

Recognitionand award

for employee

Savings toemployer

Communicationto emloyee

and supervisorDecision Evaluation

Figure 9.1: Steps for a Successful Suggestion System

Barriers to QWL and EI

As with many HR department programmes, barriers to implementation can undermine thesuccessofanyqualityofworklifeeffort.Thesebarriersarecommonlyerectedbyemployees,management,orunions.Toovercomethesebarriers,theHRdepartmentusuallymustexplaintheneed for change, asworkersandunionsare sometimes suspiciousbecause theymay feelthatanyprogrammetothemanagement’sadvantageisnot likelytobenefitthem.FeelingsofsuspicionarelikelytobemuchloweramongemployeeswithhighQWL,especiallyifjobsecurityis also available.

Evenwhenproductivity,quality,orQWLisdeclining,manymanagersarereluctanttoadoptnewapproaches thatmaybequite foreign to theirmore traditionalmethodsofmanagement.And in this regard, union leaders aremuch likemanagers, they too are reluctant to giveup“proven”rolesandapproachestoproblemsolving.Althoughthereisnoonecertainwaytogainthesupportofeachgroup,mostsuccessfulattemptsatimplementingqualityofworkliferequirebroadparticipation.6Through the involvement of keymanagersunionofficials, and affectedemployees,HRspecialistsaremorelikelytoovercomebarrierstonewprogrammes.


Notes


Successful QWL and productivity efforts have some common elements. One of the mostimportantistopmanagementcommitment.AnotherkeypointforsuccessfulQWLeffortsisalong-termperspective.OftenHRdepartmentlackstheresourcesortheorganizationalclouttodirectthecompanytowardsalargescaleQWLeffort.However,whentopmanagementdecidestoundertakesuchajourneytheHRdepartmentisoftencalledupontoprovideitspeopleexpertisealongwithitsstaffing,trainingandcommunicationabilities.

9.5 Employee Empowerment

Mostmanagersandsupervisorshaveexperiencedanauthoritarianapproachtomanagementfromtheirmanagers.Thisexperiencecanformtheimpressionthat,sincethisishowyourmanagerdidit,itistheonlywaytomanage.However,itisn’t,anditisn’tusuallythebestway,either.Puttingtheemphasisoncontrolandissuingordersandinstructionsworksinsomesituations,butitcansmotherthehumanpotentialofthepeopleworkingforyou.

Having to empowerpeoplemight sound as if you are going to lose your grip. Trust peopleand they almost invariably perform well for themselves, for you and for the organisation.Empowermentwillnothappenonitsown.It issomethingyouwillneedtoleadyourpeoplethrough.

Toempowerpeopleyouneedtolookatyourown,andtheirattitudes.Ifyoubelievethatpeoplearebasicallyunambitious,thenempowermentmaynotbeforyou.Ifyoubelievethatpeoplearealwayscapableofmorethantheydoatpresent,thenyoucanempowerthem.Empowermentisaboutvaluingpeopleandunderstandingthecontributiontheycanmake.

!Caution Be Clear about what EmpowermentMeans to you: If you are going to eitherintroduceorimplementempowerment,youneedtobeabsolutelyclearinyourownmindwhatitis,whatitwillmeanforyouandwhatyouwanttoachievewithit.

9.6 Career Planning

Individual career planning assumed greater significance with the unparalleled growth andspreadofknowledge,phenomenalincreaseineducationalandtrainingfacilitiesandwidespreadincrease in jobopportunities.Similarlyorganisationalcareerplanningalsogainedimportancewiththechangeintechnology,humanneeds,valuesandaspirations,increaseinorganisationalsize,complexityandnumberofopeningsatdifferentlevels.

Acareerisallthejobsthatareheldduringone’sworkinglife.EdwinB.Flippodefinedacareerasasequenceofseparatebutrelatedworkactivitiesthatprovidecontinuity,orderandmeaninginaperson’s life.DouglasTHalldefineda careeras“an individuallyperceived sequenceofattitudesandbehavioursassociatedwithworkrelatedexperiencesandactivitiesoverthespanoftheperson’slife”.

Career goals are the future positions one strives to reach as part of a career. Career planning is the processbywhichoneselectscareergoalsandthepathtothesegoals.Careerdevelopmentisthosepersonalimprovementsoneundertakestoachieveapersonalcareerplan.Careermanagementistheprocessofdesigningandimplementinggoals,plansandstrategiestoenabletheorganisationtosatisfyemployeeneedswhileallowingindividualstoachievetheircareergoals.

9.6.1 Career Counselling

Tohelpemployeesestablishcareergoalsandfindappropriatecareerpaths,someHRdepartmentsoffer career counselling. The career counsellor may simply be someone who listens to the

Unit 9: HRD

Notes


employee’sinterestsandprovidesspecificjob-relatedinformation.Orthecounsellormayhelpemployeesuncover their interestsbyadministeringand interpretingaptitudeandskills tests.Buttobetrulysuccessful,careercounsellorsmustgetemployeestoassessthemselvesandtheirenvironment.

9.6.2 Employee Self-assessment

Careercounsellorsrealisethatacareerisonlyapartofone’slife.Itmaybealargepartorevenacentralpart,butitisonlyapartofone’slifeplan.Ideally,acareerplanshouldbeanintegralpart of one’s life plan. Besides a life plan, self-assessment includes self-inventory. If a careercounsellorcangetemployeestocompleteadetailedandhonestself-evaluation,ithelpstofocustheirthinkingaboutthemselves.Thenemployeescanmatchtheirinterestsandabilitiesontheself-inventorywiththecareerinformationavailabletothemfromtheHRdepartment.Likewise,theycanmatchtheiraptitudesandcareerpathswiththeirpersonallifeplan.

9.6.3 Environmental Assessment

Acareerplanthatmatchesemployeeinterestswithlikelycareerpathsactuallymaydoadisservicetotheemployeeifenvironmentalfactorsareoverlooked.Areturntothechoicesfacedbyclerk-typistsatthenewspaperprovidesanexample.

Forthejobfamilyofclerk-typistTeletypeoperatorandLinotypeoperatormayappeartobeareasonablepathsinceclerk-typistspossessthebasictypingskillsneededforallthreejobs.ButtechnologicalchangesinthenewspaperindustrymayreducetheneedforLinotypeoperatorsinthefuture.PhotographicandcomputerdevelopmentsarequicklyreplacingtheuseofLinotypemachinesinnewspaperprinting.IfcareercounsellorsintheHRdepartmentdonotpointoutthisdevelopment,clerk-typistsmayfindtheircareersstalledinthejobofteletypeoperator.

Regardlessof thematchbetweenone’s skills and theorganisation’s careerpaths, counsellorsneedtoinformemployeesoflikelychangesthatwillaffecttheiroccupationalchoices.

9.6.4 Career Counselling Process

One of the problems often encountered by career counsellors is employee reaction to thecounsellingprocess.Counsellingaboutcareersisaverysensitiveissue.Employeesmayseeonlypartsofsomejobsthatpaymuchbetterandthinkthattheyarequalified.Whenthecounsellortries to explain the need for additional skills that are not apparent, employeesmay feel thattheyarenotbeing treated fairly.Orwhen the counsellor suggestsnecessary steps tobecomequalifiedforajob,theemployeemayresistadditionaltrainingorschooling,Finally,themerepresenceofcareercounsellorsmaybeatrap.Employeesmightthinkthatsomeoneelseistakingresponsibilityfortheircareerplanninganddevelopment.

9.6.5 Career Development

Theimplementationofcareerplansrequirescareerdevelopment,whichdevelopmentcomprisesthoseHR improvements that oneundertakes to achieve a career plan. These actionsmay besponsoredbytheHRdepartment,ortheymaybeactivitiesthatemployeesundertakeindependentofthedepartment.

Individual Career Development

Careerdevelopmentbeginswiththeindividual.Eachpersonmustaccepthisresponsibilityforcareerdevelopmentorelsehiscareerprogressmaysuffer.Once thispersonalcommitment ismade,severalcareerdevelopmentactionsmayproveuseful.Theseactionsinvolve:


Notes


Jobperformancezz

Mentors and sponsorszz

Exposurezz

Keysubordinateszz

Organisationalloyaltyzz

Growth opportunitieszz

Organisational Loyalty

Inmany organisations, people put career loyalty above organisational loyalty. Low levels oforganisational loyaltyarecommonamongrecentcollegegraduatesandprofessionals.Career-longdedicationtothesameorganisationcomplementstheHRdepartment’sobjectiveofreducingemployeeturnover.

Growth Opportunities

When employees expand their abilities, they complement the organisation’s objectives. Forexample,enrollinginatrainingprogramme,pursuinganadditionaldegree,orseekinganewworkassignmentcancontributetoemployeegrowth.ThesegrowthopportunitiesaidboththeHRdepartment’sobjectiveofdeveloping internal replacementsand the individual’spersonalcareer plan.

Self Assessment


11. Careerprogresslargelydependson:

(a) international exposure

(b) performance

(c) experience

(d) mentoring

(e) qualifications

12. Careerplanningistheresponsibilityof:

(a) government

(b) theHRdepartment

(c) the sponsor

(d) theemployer

(e) career counsellors

13. Informationforcareerplanninginacompany:

(a) is available through the HRIS

(b) canbehadformlinemanages

(c) canbeobtainedfromstaffassistants

Unit 9: HRD

Notes


(d) is often not available

(e) isbestobtainedfromfortune-tellers.

14. Anexampleofacareerdevelopmentabilitywouldbe

(a) scalingamountain

(b) planning a vacation

(c) workinghard

(d) discussion with the boss

(e) getting another degree

9.6.6 HR Supported Career Development

Careerdevelopment shouldnot rely solelyon individual efforts because such efforts arenotalways in the organisation’s best interest. For example, employeesmaymove on to anotheremployer. Or employees may simply be unaware of opportunities within the company tofurther their careersorof theorganisation’s staffingneeds.HRdepartmentsdomore tohelpemployee careers than just conduct career information seminars during off-hours; they seekmanygoalsthroughtheircareerplanningactivitiesinadditiontohelpingemployees.Akeygoalistodevelopaninternalpooloftalent.Careerplanningcanhelptrainersidentifytrainingneedsamongemployees.Improvementsinperformance,loyaltytothecompany,andmotivationalsomaybeoutcomesofcareerplanning.Simplyput,careerplanningcanmakegoodbusinesssense;itcanenhanceprofits,productivity,andemployees’qualityofworklife.

Management Support

Efforts by the HR department to encourage career development have little impact unlesssupportedbymanagers.Commitmentbytopmanagementiscrucial.Without,it,middle-levelmanagersmayshowmuchlesssupportoftheirsubordinates’careerplanningconcerns.

9.6.7 Feedback

Withoutfeedbackabouttheircareerdevelopmentefforts,itisdifficultforemployeestosustaintheyearsofpreparationsometimesneededtoattaincareergoals.HRdepartmentscanprovidethisfeedbackinseveralways.Onewayistogiveemployeesfeedbackaboutjobplacementdecisions.Anemployeewhopursuescareerdevelopmentactivitiesandispassedoverforpromotionmayconcludethatcareerdevelopmentisnotworththeeffort.Unsuccessfulcandidatesforinternaljobopeningsshouldbetoldwhytheydidnotgetthecareeropportunitytheysought.

Another type of feedback concerns job performance, which is, perhaps, the most importantfeedbackthatanemployeegets.Asstated,careersuccessrestslargelyuponjobperformance.Togiveemployeesfeedbackabout their jobperformance,manyHRdepartmentsdevelopformalperformanceevaluationprocedures.Theresultingfeedbackallowstheemployeetoadjusthisperformanceandcareerplans.

Self Assessment


15. Careerdevelopmentfocusesbasicallyontheshortrangecareereffectivenessandsuccessof organisation personnel.

16. Allemployeeshavesimilarcareergoals.


Notes


17. Goodperformanceisalwaysrecognisedbymanagers.

18. Employeesonlyhavethemselvestoblameforstalledcareers.

19. Careerplanninghelpsthemanagementofadiverseworkforce.

20. CareerDevelopmentaimsattrackingcareersponsors.

9.6.8 Benefits of Career Planning and Development

Theprocessofcareerplanninghelps the individual toaccess theknowledgeofvariouszz

careeropportunities,hispriorities.

Thisknowledgehelpshimselectthecareerwhichissuitabletohislifestyle,preferences,zz

familyenvironment,scopeforself-development.

Ithelpstheorganisationidentifyinternalemployeeswhocanbepromoted.zz

Internalpromotions,upgradationandtransfersmotivatetheemployee,boosttheirmoralezz

and also result in increased job satisfaction.

Increasedjobsatisfactionenhancesemployeecommitmentandcreatesasenseofbelongingzz

andloyaltytotheorganisation.

Employeewill awaithis turnofpromotion rather thanchange toanotherorganisation.zz

Thislowersemployeeturnover.

Itprovidesopportunitytoemployeestoperformonthejobbytappingtheirpotentialandzz

furthersemployeegrowth.

Itsatisfiesemployeesesteemneeds.zz

9.6.9 Career Problems

Despiteplanningthecareer,employeesfacecertaincareerproblems.Theyare:

Dual career families: zz Withtheincreaseincareerorientationamongwomen,thenumberoffemaleemployeesisontheincrease.Withthis,dualcareerfamilieshavealsoincreased.Consequently, one of those family members might face the problem of transfer. Thishasbecomeacomplicatedproblemtoorganisations.Thusotheremployeesmaybeatadisadvantage.

Low ceiling careers: zz Somecareersdonothavescopeformuchadvancement.Employeescannotgetpromotionsdespitetheircareerplansanddevelopmentinsuchjobs.

Declining career opportunities: zz Career opportunities for certain categories reach a declining stageduetotheinfluenceoftechnologicaloreconomicfactors.Solutionforsuchaproblemis career shift. For example, career opportunities for statisticians have declined due tocomputerisation.

Solutions to Career Problems

Employeescanminimisetheproblemby(a)improvingthedisseminationofcareerinformationin order to help the early process of career choice; (b) improvingmechanisms for people todiscovertheirowntalents,needsandmotives(c)improvingmechanismforcareerswitchingand(d)introducingnecessaryeducationalfacilities.

Theorganisationcanalsominimise theproblemsby (a) improvinghumanresourceplanningand forecasting systems (b) improving dissemination of career option information (c) career

Unit 9: HRD

Notes


counselling (d) developing effective internal and external assessment centres (e) supportingeducationalandtrainingprogrammesand(f)introducingmoreflexiblerewardandpromotionalsystems.

Self Assessment

Fillintheblanks:

21. Careerisa..............ofpositionsheldbyapersonduringthecourseofalifetime.

22. Careerplanninganddevelopmentisaconsciousprocessthroughwhichapersonbecomesaware of personal .................

23. Careerdevelopmentisa..............process.

24. The .............. chart is avisual representationofwhowill replacewhom if there is a jobopening.

25. A................planisaplanforidentifyingwhoiscurrentlyinpostandwhoisavailableandqualifiedtotakeover.

9.7 Knowledge Management

KnowledgeManagement(KM)isanewlyemerging,interdisciplinarybusinessmodelthathasknowledgewithintheframeworkofanorganizationasitsfocus.Itisrootedinmanydisciplinesincluding business economic, psychology, and information management. It is the ultimatecompetitiveadvantagefortoday’sfirm.KnowledgeManagementinvolvespeople,technology,andprocessinoverlappingparts.Theseareashavedevelopedperspectivesontheworkingsofindividual and systematic knowledge.KnowledgeManagement embraces theseperspectives,butoperatesfromthebasicpremiseofthe“Sticky”natureofknowledge.

People (Workforce)

Technology (IT Infrastructure)

Organizational Process

Figure 9.2: Human Organizational and Technological Factors of Knowledge Management

KnowledgeManagementistheprocessofcapturingandmakinguseofafirm’scollectiveexpertiseanywhereinthebusiness–onpaper,indocuments,indatabase(calledexplicitknowledge)orinpeople’sheads(calledtacitknowledge).Itisthefuelorrawmaterialforinnovation–theonlycompetitiveadvantagethatcansustainacompanyinanunpredictablebusinessenvironment.Itisnotintendedtofavourexpertsystemsoftheearlyprocesses.Thegoalistopresentabalancedview


Notes


ofhowcomputertechnologycaptures,distributes,andsharesknowledgeintheorganizationbylinkinghumanexpertiseanddocumentationinanintegratedKnowledgeManagementsystem.

Intangible Asset Tangible Asset

38%

38%

62%

62% 85%

15%

1984 1992 2005

Figure 9.3 : Tangible to Intangible Assets

Whydoweneedknowledgemanagementnow?

1. Workisinformation-based

2. Competitiveadvantage

3. Life long learning

4. Innovation

5. PLC is decreasing

6. Diversification

9.7.1 Knowledge Management: A Cross-disciplinary Domain

KnowledgeManagementdrawsfromawiderangeofdisciplinesandtechnologies.

Cognitive Science

Insightsfromhowwelearnandknowwillcertainlyimprovetoolsandtechniquesforgatheringandtransferringknowledge.

Expert system, Artificial Intelligence (AI) and Knowledge Based Management (KBM) andKnowledgeBaseManagementSystems(KBMS).

ArtificialIntelligence(AI)andrelatedtechnologieshaveacquiredanundeservedreputationofhavingfailedtomeettheirownandthemarketplace’shighexpectations.Infact,thesetechnologiescontinuetobeappliedwidely,andthelessonspractitionershavelearnedaredirectlyapplicabletoknowledgemanagement.

Computer – Supported Collaborative Work (Groupware)

InEurope,knowledgemanagementisalmostsynonymouswithgroupwareandthereforewithLotusNotes.SharingandcollaborationareclearlyvitaltoorganizationalKnowledgemanagementwithorwithoutsupportingtechnology.

Library & Information Science

Wetakeitforgrantedthatcardcatalogsinlibrarieswillhelpusfindtherightbookwhenweneedit.Thebodyofresearchandpractice inclassificationandknowledgeorganizationthatmakeslibrariesworkwillbeevenmorevitalasweareinundatedbyinformationinbusiness.ToolsforThesaurusconstructionandcontrolledvocabulariesarealreadyhelpingusmanageknowledge.

Unit 9: HRD

Notes


Technical Writing

Also under-appreciated, even sneered at us a professional activity, technical writing (oftenreferredtobyitspractitionersastechnicalcommunication)formsabodyoftheoryandpracticethatisdirectlyrelevanttoeffectiverepresentationandtransferofknowledge.

Document Management

Originallyconcernedprimarilywithmanagingtheaccessibilityofimages,documentmanagementhasmovedontomakingcontentaccessibleandreusableatthecomponentlevel.Earlyrecognitionof the need to associate “metainformation”with each document object prefigures documentmanagementtechnology’sgrowingroleinknowledgemanagementactivities.

Decision Support System

AccordingtoDanielJ.Power,“ResearchersworkingonDecisionSupportSystemshavebroughttogetherinsightsfromthefieldsofcognitivesciences,managementsciences,computersciences,operationsresearch,andsystemsengineeringinordertoproducebothcomputerizedartifactsforhelpingknowledgeworkers in theirperformanceofcognitive tasks,andto integratesuchartifactswithinthedecision-makingprocessesofmodernorganizations.”

Semantic Networks

Semantic networks are formed from ideas and typed relationships among them, sort of“hypertext”withoutthecontent,“butwithfarmoresystematicstructureaccordingtomeaning.Oftenappliedinsucharcanetasksastextualanalysis,semanticnetsarenowinuseinmainstreamprofessionalapplications,includingmedicine,torepresentdomainknowledgeinanexplicitwaythat can be shared.

Relational and Object Database

Althoughrelationaldatabasearecurrentlyusedprimarilyastoolsformanaging“structures“dataandobject-orienteddatabaseare consideredmoreappropriate for “unstructured” contentwehaveonlybeguntoapplythemodelsonwhichtheyarefoundedtorepresentingandmanagingknowledgeresources.

Simulation

Knowledge Management expert Karl-Erik Sveiby suggests “simulation” as a componenttechnologyofknowledgemanagement,referringto“computersimulations,manualsimulationsaswellasroleplaysandmicroarenasfortestingoutskills”.

Organizational Science

Thescienceofmanagingorganizationalincreasinglydealswiththeneededtomanageknowledgeoften explicitly. It is not a surprise that theAmericanManagementAssociation’sAPQC hassponsoredmajorknowledgemanagementevents.

KnowledgeManagementdefinitionyetagreeonbyresearchersandpractitioners.Itincludes:

1. Knowledgegeneratedfromoutsidesources

2. Organizationvalues,practicesandethics

3. Transferringandsharingknowledge


Notes


KnowledgeManagementisa:

1. Systematicleveragingofinformationandexpertise

2. InUSKnowledgeManagementprocessuseIT

3. InEurope–managingintellectualcapital

4. InJapandevelopmentofknowledgeworkers.

Knowledge Management is understanding gained through experience of “Know-how” i.e.accumulationoffacts,proceduresandrules.

KnowledgeManagement:isatoolforproblemsolvingcross-disciplinarydomainstrategiclevers.

There are several levers that organizations commonly use to solve problems and to exploitknowledge.Themainonesareknowledgeinpeople,productsandprocess.

Knowledge Management: Cross-disciplinarydomainstrategiclevers.Themainonesare:

1. Customerknowledge

2. People–employees

3. Smartproduct

4. Business process engineering

5. Organizationalmemory

6. Knowledge relations

7. Knowledge assets

Customer Knowledge

In virtually every survey, customer knowledge tops the list of an organization’s most vitalknowledge;customerscanprovidevaluable insight intotheuseofproduct/servicesandcanhelp supplier clarity about unmet needs.Many organizations do not integrate their varioussources of customer knowledge. Facultymembers do not systematically realize participant’sunmetfeedbackthatisofimmediaterelevancetothesatisfactionoftheparticipants.Incontrast,Motorola University records all the classroom lecturers knowledge channels by talking tocustomer’s customers, the ultimate end-users of their training programmes. It uses videoethnographytounderstandhowtheirlecturersareusedandcanberedesignedtoimprovetheeffectivenessofknowledgework.Asaresult,ithascreatedawardwinningofficemodulesthatalthoughpremiumpricedquickly recoups their investment throughmuchhigherknowledgeworkerproductivity.

Knowledge in People

Knowledgeinpeople’smindisoftenmorevaluablethanencapsulatedindatabase.Theskillsandexperienceofemployeesneedtobecontinuallytapped.“LearningOrganizations”programmesareonewayofnurturingandapplyingunderutilizedtalent.AtInstituteofPublicEnterprise,Hyderabad,facultyreachingretirementsharetheirexperienceswithcolleaguesanddepositsomeoftheirknowledgebeforetheyleave,throughinvolvingjuniorfacultyinorganizingseminars,workshops and trainingprogrammes and contributions to knowledgebases.Other academicinstitutionsinHyderabaduselearningnetworkandknowledgesharefairs,asabetterwaytodiffusepersonalknowledgethroughoutanorganization.

Unit 9: HRD

Notes


Knowledge in Products

“Intelligent” or “Smart” products can command premium prices and be more beneficial tousersasis informationthatsurroundsproducts.Oneexampleistheintelligent”oildrillsthatbendandweavetheirwaytoextractmoreoilthaneverfromthepocketsofoilinundergroundformations.

Knowledge in Process

Business processes in many companies hinder customer service. They often represent anidealizedwayofdoingbusinessatahistoricpointintime.BritishAirlines,whenitre-engineereditsbusinessprocessesforunderwritinginsurancerisk,capturedtheknowledgeofitsbestexpertsand embedded it as hints andhelp files in the computerworkflowprogramme. In addition,contactdetailsofexpertsallowuserstoaccesstheirlatestthinking.

Organizational Memory

This levelhelps theprocessof identifying“knowledgewhatweknow”becauseof computerdatabase on intranets and common form of organizationalmemory, butmany suffer lack oforganizationoreaseofnavigation.

Knowledge in Relationships

Frequentlyoverlookedisthedepthofpersonalknowledgerelationships.Twopeoplewhohaveworkedtogetherforalongtimeinstinctivelyknowtheanother’sapproachandwhatneedstobeexpressedandwhatcanbetakenforgranted.Withthegrowingneedforcollaborationwithcustomers,suppliersandmanyotherbusinesspartners,companiesneedtocapturesomeofthisknowledgeandprovideforumswheretheserelationshipscanbestrengthened.

Knowledge Assets

The growing discrepancy between market and book value in many knowledge –intensivecompaniesmeans that traditional financial accountingmethods are failing to capture detailsof these assets.Many companies are institutingmore formal systems to capture informationabouttheirintangibleassetsorintellectualcapital.Commonlydividedintohumanassets(skills,knowledgeandexperience),organizationalcapital (system,process,anddatabases),customerassets(number,qualityanddepthorrelationship)andintellectualproperty(parents,copyright,trademark,etc.)RelianceIndustries’intellectualassetmanagementprogrammeinitiallyfocusedonpatents.Itcreatedaninventoryofthemandanalyzedhowwelltheywereexploited.In1996,itexhibiteditsintellectualcapitalonthestockexchangeandattractedhugeinvestmentduringthecapitalmarketrecession.RelianceIndustriesLimited(RIL)isattheforefrontofreportingitsintellectualcapitalmeasurespublicly.

Thesearenottheonlywaysthatcompaniesaresolvingproblemsthroughknowledgebutgiveanideaofhoweffortcanbefocusedtogoodeffect.Theleaversarenotmutuallyexclusive,inpractice;manyknowledgeprogrammesconcentrateonjusttwoorthree.

9.7.2 Difficulties in Knowledge Management

Knowledge awareness benefits entire organizations, with today’s emphasis on suitablecompetitive advantage, added value, and improved productivity, a firm’s managementneeds tocreate, innovate,monitor,andprotects itsknowledge inventory.Morespecifically,aknowledgemanagementenvironmentmeansafocusongeneratingnewknowledge,transferring


Notes


existingknowledge;embeddingknowledgeinproducts,servicesandprocesses;developinganenvironmentforfacilitatingknowledgegrowth;andaccessingvaluableknowledgefrominsideandoutsidethefirm.Whenthishappens,itisbeyondsurvival.Infact,itisbeyondintranetsanddatabases—thetechnologythatsupportsknowledgemanagement.

Knowledge management creates competitive advantage, provided: HR professional should beable toattractandretaintacitknowledge.20%oforganizationalknowledgepersonnelcanoperate80%oforganizationday-to-daybusinesstocreatelearningorganization.

Some sources claim that 20 percent of organization knowledgeable personnel can operate 80percentof theorganization’sday-to-daybusiness.Thehumanresourcesmanagercanplayanimportantrole in identifyingtheknowledgecoreof theorganization,recommendingwaystopreservethiscriticalcore,andbuildingarobust,longrangeplantoensuretop-qualityoperation.Withoutsuchpreparation,corporatetalentcouldpotentiallyerodethroughabraindrainthatspellsdisasterforanybusiness.Atthesametime,professional’sexpertise,especiallywhenthatexpertisedirectlycontributestothefirm’sproductivity.Suchmatchesexplainthestabilityandgrowthofmanysuccessful“learning”companies.

Severalideasshouldbeconsideredforhowacompanyshouldperforminordertocreateandmaintainsustainablecompetitiveadvantage.First,thereshouldbemoreemphasisontapping,sharing,andpreservingtacitknowledgeandthetotalknowledgebaseofthecompanyandexistsinternallyinthebusinessaswellaswithinthefirm’sexternalconnections.Second,companiesshould focus on innovation and the processes that convert innovation to new products and services.Knowledgesharingandanemphasisonthetotalknowledgebasepromoteinnovation.

Finally, it is important to consider a renewed focus on organizational learning systems andsystematicthinkingthroughouttheorganization.Thisisarealisticexpectation,becauseknowledgeiscloselyrelatedtolearning,whichistheoutcomeofregularandcontinuousinteractivelearning.Systems thinking mean understanding how the various parts of the company work. Thisincludeslearningbehaviouralpatternsinthesystemandthecultureorsystemenvironmentinwhichemployeesandadministratorsoperate.Inotherwords,systematicthinkingisexpectedtosupportinnovationandcontinuousimprovementprocessessocialcompetence,andinteractions,aswellasthetotalknowledgebase.

Whatgoodisknowledgeifitcannotbeshared?Ifknowledgeispowersharing,itwillmultiplypoweracrossthebusiness.Unfortunately,sharingknowledgeisanunnaturalthing.Oneperson’sknowledgeisanaddedvaluetothatperson’scarrierpath.Knowledgemanagementisdesignedtosolvetheproblemofunrecycledknowledge.Systemshavebeendevelopedtogather,organize,refineanddistributeknowledgethroughoutthebusiness.Virtually,allsuchsystemsshouldhavesix key attributes; learning capacity, improvingwithuse, knowingwhat youwant, two-waycommunicationbetween the systemandyou, recallingpast actions todevelop aprofile, anduniqueconfigurationtoyourindividualspecificationsinrealtime.

In the final analysis, communication and connection make knowledge sharing an ongoingactivity.Technologycanonlydosomuchtocreatea formalsystem.Successwithknowledgemanagementexistswhenthecultureisreadytocommunicateandconnect.Theendresultisa“community”builtaroundknowledgeandbasedonvision.

9.7.3 Types of Knowledge Management

Knowledgemanagementhasbeencategorisedintothree:

1. Explicit

2. Implicit

3. Tacit Knowledge

Unit 9: HRD

Notes


Distinguishing between Data, Information and Knowledge

Allknowledgepossessedbyemployeescannotbecaptured.Knowledgethathasbeentapped,recordedanddocumentedisknownastacitknowledgeandknowledgethatcanbecapturedasexplicit.

1. Data:Symbolsorfactsoutofcontext,andthusnotdirectlynorimmediatelymeaning.

2. Information:Dataplacedwithinsomeinterpretivecontext,andthusacquiringmeaningand value.

3. Knowledge: Meaningfully, structured accumulation of information, information that isrelevant,actionable,andbasedatleastpartiallyonexperience.

Distinguishing between Explicit and Tacit Knowledge

1. Explicit knowledge:Canbeformallyarticulatedorencoded;canbemoreeasilytransferredorshared;isabstractandremovedfromdirectexperience.

2. Tacit knowledge: Knowledge-in-practice; developed fromdirect experience and action;highlypragmaticandsituationspecific;sub-consciouslyunderstoodandapplied;difficulttoarticulate;usuallysharedthroughhighlyinteractiveconversationandsharedexperience.

Application of Tacit Knowledge in Innovation

1. Problem solving:Experts,asoppositetonovices,cansolveaproblemmorereadilyastheyhaveinmindapatternbornofexperience,whichtheycanoverlayonaparticularproblemandusetoquicklydetectasolution.

2. Problem finding: Linking a general sense of intellectual or existential unease to radicalinnovation: creativeproblem framingallows the rejectionof the“obvious”answer toaprobleminfavourofaskingawhollydifferentquestion.Intuitivediscoveryisoftennotsimplyananswertothespecificproblembutaninsightintoitsrealnature.

Task ‘HRDisnothingbutlookingatthedevelopmentofmanpowerofanorganisationinthelightofitsrequirements.’Comment.

9.8 Mentoring and Reverse Mentoring

Mentorwas historicallywhat Chanakyawas to ChandraguptaMaurya, andmythologically,what Krishnawas to Arjuna. Although this one-on-one training tool is used only sparinglyincorporate India,amongthecompanies thatdodeploy it isSmithKlineBeechamConsumerHealthcare(SmithKlineBeecham).

Mentoringhasgrownoutofformallearningtechniqueslikebehaviourmodelling.Inthecorporatecontext,itistheprocesswherebyaseniormanageractsasfriend,philosopher,andguidetoanew-to-theranksentrant,easinghimthroughtheritesofpassagefromeducationalinstructionstoorganisationallife.Fromjob-contenttopersonalcounseling,fromdrawingupadress-codetoteachingtable-mannersintheexecutivelunchroom,fromexplainingtheobduracyofabosstoanalysingtheintransigenceofasubordinate,there’snoactofelucidationandhand-holdingthatamentordoesnotperformforhisprotégé’(mentee).Inshort,whileorganisationaltrainingtakescareof theknowledge-baseand theskills-setof theyoungmanager,mentoringcomplements


Notes


it with personal instruction in the intricacies of operating in that corporation, conducted bysomeonewho’sbeenthere,donethat.

Mentoringplaysavitalroleinsmootheningthecreasesarisingfromculturaldiversity,whichbringstogetheragroupofpeoplewithvaryingexpectations,beliefs,andmethods,byofferingindividualsapaththroughwhatappearstobeabewilderingarrayofsystemsandprocesses.

Those, infact,aretheprimarygoalswithwhichSmithKlineBeechamhasbeendeployingthetoolsince1996,usingspecially-selectedandtrainedseniormanagerstoprovideguidanceandadvicetohelpdevelopitstrainees’careers.Mentoringcreatesanenablingsystemwhichhelpsthenewhires toabsorb the culturequickly, and forge tieswithcustomers,both internalandexternal.Italsocreatessynergieswithcorevaluesofcustomers,integrity,performance,peopleandinnovation,andthepolicyofgrowingitsowntimber.TheprocessatSmithKlineBeechamkicksoffwiththeallotments,madeonthesamedayonwhichtraineesareindoctrinatedinthecompany’sphilosophy,vision,andculture.Overthenextfivedays,asthetraineesaregivenaquickrundownonthedifferentaspectsofthecompany’soperations,theresultsofapersonalitytestthattheyhavetakenarestudiedbythementorstounderstandtheirwards.Soonafter,arole-clarityworkshopattendedbyCEOexplainsthescenarioforthementors.

Althoughservingasamentorisamatterofchoice,managersknowthatbeingofferedtheroleisanachievementontheircareergraphs.Andwhilethequalityoftheirmentoringisn’tlinkeddirectlytoperformanceevaluation,thefeedbackfromthementeesarefiledforreference.Whileeach trainee has only onementor, amentor sometimes has two trainees.Over the next ninemonths, as newmanagers go through their formal training being rotated through differentdepartments,regularinteractionbetweenmentorandmenteegetsunderway.Thatclosenessisbuiltthroughspecificactiontoo.

SmithKlineBeecham’smentoringaddressesthevarietyofeducationalbackgroundsandsocialsettingsthatfreshmanagerscarryintotheorganisation.Thecompanytooknochances,usingsimulations of real-life situations, drawing on managers’ personal experiences and detailedrole-playtoidentifyjustwhatwerelikelytobethebiggestconcernsfornewmanagersand,byextension,forthementors.Mentorshavetoprovidesolutionsandadvicebydrawingontheirownexperience,theirunderstandingoftheprotégé’spersonality,theirgraspoverthecompany’scultureandresources,andtheirwillingnesstoinnovate.

Equallyvital is the role thatmentoringplays in facilitating theprocessofmutualadjustmentbetweenanewmanagerandtheorganisation.Mentorsclarifyallissues,especiallyculturalandethicalones,andinstillgreaterconfidenceinmentees.Theyarethenbetterequippedtotakeonorganisationalresponsibilities.Thus,mentorsactasashortcutbetweentheindividualandtheorganisation,translatingthelatter’simpersonalformintoexplanationsthatnewmanagerscanfathom.Asproofofthesuccessofitsmentoringprogramme,SmithKlineBeechamcitesretentionrates; the fact that, ever since SB began this process, it has not lost any of themanagementtrainees.

BeforeyouputmentoringonyourlistofHRtools,takeareality-check,though.Itsdownsidesaredefinitive;mentoringonlygivesaleg-uptopeoplewithdeficiencies.Itisafactthathighly-motivated,top-performingpeopleoftenfinditalagratherthanaboostersinceitcanretardtheirfunctional learning by constantly seeking personal interaction.Worst of all,mentoring-gone-badcancreateaddcostrelationshipsthatthreatenbothindividualefficiencyandorganisationalobjectives.

Ironically, a second set of problems may arise from any communication and culture gapsbetweenamenteeandamentorfromdifferentgenerations.Animportantpieceoffeedbackisthattheseniorityofthementors,sometimes,actsasaninhibitingfactor.SmithKlineBeecham’ssolutionwastoaddbuddies:colleaguesslightlyseniortothementees,butcloseenoughtotheminageandsenioritytounderstandtheirproblems,andhelpthemcommunicatebetterwiththeir

Unit 9: HRD

Notes


mentors.Since1997,amentee’sbuddy—who,ideally,shareshissocial,educationalandculturalbackground—hasbeenactingasabridgewiththementorwherevernecessary.

Despite its drawbacks and deficiencies, mentoring helps fresh managers understand theirorganisation, and their roles in it, better. Many employees quickly learn that a mentor cannominate the employee for career development activities, such as a training programme.For transfersorpromotions, thementorbecomesa sponsor.Oftenanemployee sponsors theimmediatesupervisor.

Thereareanumberofspecificbenefitsthatmentorscanprovidetothosetheyassist,includingthe following:

1. Identifytheskills,interestsandaspirationsthepersonhas.

2. Provide instructions in specific skills and knowledge critical to successful jobperformance.

3. Helpinunderstandingtheunwrittenrulesoftheorganisationandhowtoavoidgaffes—sayingordoingthewrongthing.

4. Answerquestionsandprovideimportantinsights.

5. Offeremotionalsupport.

6. Serveasarolemodel.

7. MentorwashistoricallywhatChanakyawastoChandraguptaMaurya,andmythologically,whatKrishnawastoArjuna.Althoughthisone-on-onetrainingtoolisusedonlysparinglyincorporateIndia,amongthecompaniesthatdodeployitisSmithKlineBeechamConsumerHealthcare(SmithKlineBeecham).

9.8.1 Reverse Mentoring

Theconceptofaseniorpersonlearningnew&latestconceptsfromafairlyyoung&juniorpersonis termed as ReverseMentoring.While traditionalmentoring focuses on passing knowledgefromprofessionaltoup-and-comingstars,ReverseMentoringfeedsexpertiseupthecorporateworld.Thus,underReverseMentoring,“ayoungerorlessexperiencedExecutivehelpsamoreseniormanagergaininsightintoareas,suchascomputersandchangingITtechnology,changingmindsets&expectationsoftheyoungergeneration,newbusinessconcepts,thinkingoutoftheboxetc.”

Thereversementoringsessionsareextra-ordinarilyvaluable.Theyhavemadeusabetterleaderandmoreintouchwithtoday’sworkplace”.

Benefits

1. It Improvesdecisionmakingas itbringsa lotofassociated inputs in termsof feelingofemployees,newdevelopmentaroundtheindustry,bestpracticesetc.andcreatemoretightlyknitrelationshipwithjuniors.SoitservesasanelementofDecisionSupportSystem.

2. It helps senior executives learn new areas as computers, technology, culture and otherhighlyfocusedtechnicalareas.

3. Itisapartofnaturalevolutionoflearningasbusinessinthedigitalagerequiresmorethana pulse and a briefcase.

4. It helps senior employees to learn new skills and competencies that boost their jobperformanceandmotivatethemtoworkbetter.


Notes


Principles of Reverse Mentoring

SettingupasuccessfulReverseMentoringprogramrequiresagreatdealofeffortandplanning.Withoutasolidfoundation,itislikelytoencountermorethanafewbumpsandparticipantsarelikelytoreceiveplentyofmentalbruises.Astherelationshipinvolvedisaverydelicateone.

Steps of Reverse Mentoring Program

1. Developingastructuredprogram:Either,assignmentoringpairsor,letparticipantsfindmentors/menteestheyfeeltheywillbecomfortablewith.What’simportantistodevelopasetofgoals,objectivesandgroundrules.

2. Maketheprogramapriority:Participantsmustunderstandthe importanceofareversementoringprogram and block timewhichmentors&menteeswould spendwith eachothersothatseniorsdonotmissthosesessionsduetotheirbusyschedule.

3. Mentorsmusthavepatienceandtemperamenttoworkwithseniorexecutivesastheseniorsmaybereluctanttoopenupwithsomeonesojunior.

4. Mentormust learnwhat’s important andhow to showpatienceand thementeehas tocheckhisorher egoat thedoor,otherwise thewhole reversementoringprogrammayfall.

5. Reversementoringcanrequirecorrection.Bysurveyingparticipantsit’spossibletoidentifystrengthsandweaknessesandmaketheadjustmentnecessarytoachievesuccess.

Essentials for Successful Reverse Mentoring

Both, thementorand thementee,musthavecertainqualitiesandattributes.Both thepartieshavetheirshareofresponsibilitieswhichwhenfulfilledcanmakeareversementoringprogramsuccessful. Following are themust have qualities for amentor and his partner in a ReverseMentoringProgram:

Characteristics of Good Mentors

ListenandUnderstandzz

ChallengeandStimulatelearningzz

Teachbyexamplezz

Introduce to new technologies zz

Patient zz

Restricted advice zz

Characteristics of Good Mentees

Listen zz

Act on advice zz

Showcommitmentzz

Askforfeedbackzz

Open-mindedzz

Willingtochangezz

Actpro-activelyBydevelopingthesequalitiesthesuccessofthereversementoringprogramzz

can be ensured.

Unit 9: HRD

Notes


Limitations of Reverse Mentoring

“Theideaofreversementoringisgood,butshouldbeusedJudiciously”

1. Seniorexecutivesmaynotliketakingadvicefromexecutiveswhoarejuniorstothem.

2. Itisnotpresentformally,therefore,littleReverseMentoringisfoundinorganizations.

3. ReverseMentoringprogramsmaywitheriftheylackclearandadequategoals.

Ifnothandledproperlyitcanruintheworkatmosphereanddisciplineintheorganization.

Case Study Empowerment in Action

Talkingabouttakingactionremindsmeofaspecificexamplethatexemplifieswhathappenswhen a teammember has been empowered. I had been on a gruelingspeaking tourwhen, after an arduously long flight, I checked into theMeridien

hotel,NewDelhiat2:00a.m.Becauseitwaslate,IgavethecarkeystoabellmansothatIcouldgetcheckedinandgotobed.ThefollowingmorningIhadanearlyengagementwithaclient.AfterbreakfastIgavemyclaimchecktoanattendant.Afterwaitingforaboutfiveminutes,Hari,thebellman,camebackandtoldmethatmycarwouldnotstart.“Itappears,”heexplained,“thatsomeoneleftthelightsonovernight.”GiventhatIhadanappointmentwithaveryimportantclient,Istartedgettingabitnervous.“Nottoworry,Dr.Rakesh.”(ThoseMeridienhotelfolkshavefiguredouthowimportantournamesaretous—Ijustwonderwhymostotherservicecompanieshavenotcaughton)“I’lljustdriveyoutoyourappointmentinourvanandgetyouthereinplentyoftime.”Onthewayover,hetoldmethathewouldcontactthecarrentalcompanyandmakesurethattheycorrecttheproblemorprovidemewithanothercar.(Mindyou,hecameupwiththat,Ididn’taskforit.)“Also,hecontinued,“whattimewouldyoulikemetopickyouup?”IassuredhimthatIwouldbeabletogetarideback,butthatIwouldbeextremelygratefulifhecouldmakesurethatthecarwouldbefixed,sinceIwouldhavelittlechancetodoitmyself.Attheendofafullanddemandingday,Ireturnedtothehotel.IcouldhardlybelieveitwhenIfoundoutthatHarihadindeedtakencareofeverything.Andtothink,allIhadgivenhimwasthenameofthecarrentalcompany!Plus,hewasincrediblycheerfulandcomposedatalltimes.Afront-lineemployeetakingindependent,autonomousactiontodorightbythecustomerregardlessofeffort,inconvenience,orcost.That’swhatIcallempowermentinaction!

Questions

1. WhatpromptedthebellmantotakecareofeveryproblemofDrRakesh?

2. Whatfactorscontributedtotheextraordinaryperformanceofthebellman?

3. WhatbenefitdidthehotelMeridienderivefromHari’saction?

9.9 Summary

Human resource management is the art of procuring, developing and maintainingzz

competentworkforcetoachievethegoalsofanorganisationinaneffectiveandefficientway.

HumanResourceDevelopmentaimsathelpingpeopletoacquirecompetenciesrequiredzz

toperformalltheirfunctionseffectivelyandmaketheorganisationdowell.


Notes


HRDimprovesthecapabilitiesofpeople;promotesteamspiritamongemployees.zz

HRDhelpsanorganisationachieveitsgoalsefficiently.zz

HRDhasgained importance inrecent times,ascompanieshaverealised thebenefitsofzz

treatingtheiremployeesasvaluableassets.

ThereisanincreasingrealisationinbusinesscirclesthatHRD(notaHighlyRedundantzz

Departmentplease)wouldhelppeopleacquireknowledge,skills,andhighercapabilities.

HRDisneededbyorganisationstodaytosurviveandflourishinacompetitiveworld.zz

9.10 Keywords

Autonomous Work Groups:Theseareteamsofworkers,withoutaformalcompany-appointedleader,whodecideamongthemselvesonmostdecisionstraditionallyhandledbysupervisors.

Development: Represents activities that prepare an employee for future challenges andresponsibilities.

HRD: Aplannedwayofdevelopingindividualemployees,groupsandthetotalorganisationtoachieveorganizationalgoals,inanatmosphereofmutualtrustandcooperation.

Human Resources:Thesumofknowledge,skills,attitudes,commitment,valuesandthelikeofthe people of an organisation.

Human Resource Management: A process of bringing people and organisations together so that thegoalsofeacharemet.

Personnel Management:Dealswithpeopleatworkandtheirrelationshipswitheachother.

Proactive Approach: Initiating action in anticipation of future challenges.

Productivity:Theratioofanorganisation’soutputtoitsinputs.

Quality Circles:Qualitycirclesaresmallgroupsofemployeeswhomeetregularlywith theircommonleadertoidentifyandsolvework-relatedproblems.

Quality of Work Life:QWLeffortsareeffortsbyorganisationsgiveworkersagreateropportunitytoaffectthewaytheydotheirjobsandthecontributionstheymaketotheorganisation’soveralleffectiveness.

Socio-technical Systems:Socio-technicalsystemsareinterventionsintotheworksituationthatrestructurethework,theworkgroupsandtherelationshipbetweenworkersandthetechnologiestheyusetodotheirjobs.

Suggestions Systems:Suggestionssystemsareaformalmethodforgenerating,evaluatingandimplementingemployeeideas.Ifevenoneofthesethreeelementsismissing,thesuggestionplanfails. All three are crucial.


1. WhatisHRDneededinmodernorganisations?

2. AnalysetheimportanceofHRDbothatthemicroandmacrolevels.

3. ‘’Man,ofalltheresourcesavailabletoman,cangrowanddevelop”(Drucker).Comment.

4. HRDisneededatnationalaswellasorganisationallevel.Examine.

5. DiscussHRDpracticesinIndianorganisationwithproperexamples.

Unit 9: HRD

Notes


6. What is the need for Human resource development in organizations operating in anenvironmentasthatofIndia?

7. NewpeoplemanagementisarelativelynewconceptinHRM.Examineitssignificance&utility.

8. WhatisthemacrolevelscopeofHRD?

9. WhenwouldyouuseanHRDmatrix?

10. Whatarethedifferenttypesofknowledgemanagementknowntoyou?

11. Differentiatebetweensocio-technicalsystemandsuggestionsystem.

12. Whatisreversementoring?Discussitslimitations.


1. True 2. False

3. True 4. False

5. True 6. True

7. False 8. False

9. False 10. True

11. (b) 12. (d)

13. (a) 14. (e)

15. False 16. False

17. False 18. False

19. True 20. False

21. sequence 22. career-related

23. lifelong 24. replacement

25. succession











Notes


Online links http://en.wikipedia.org/wiki/Human_resource_development

http://www2.aau.org/wghe/gender/toolkit/Toolkit-module3.pdfwww2.aau.org/wghe/gender/toolkit/Toolkit-module3.pdf

http://humanresources.about.com/od/glossaryh/f/hr_development.htm

Unit 10: Industrial Relations and Trade Unions

Notes



CONTENTS

Objectives

Introduction

10.1 Industrial Relations

10.1.1 Theories of Industrial Relations

10.1.2 Objective of Industrial Relations

10.1.3 Scope and Aspects of Industrial Relations

10.2 TradeUnions

10.2.1 NatureandCharacteristicsofTradeUnion

10.2.2 Objectives,FunctionandRoleofTradeUnions

10.2.3 AdvantagesandImportanceofTradeUnions

10.2.4 WeaknessesofTradeUnions

10.2.5 CausesofSlowProgressofTradeUnionsinIndia

10.2.6 WeaknessesoftheTradeUnionMovementinIndia

10.3 IndustrialConflict/Dispute

10.4 Dispute Resolution

10.4.1 PreventiveMachinery

10.4.2 SettlementMachineryforResolvingDisputes

10.5 Summary

10.6 Keywords



Objectives


DefinethetermIndustrialrelationszz

Discuss the need of trade unionszz

State the causes of disputeszz

Explain the concept of dispute resolutionzz

Introduction

Theterm,industrialrelations,referstoindustryandrelations.“Industry”means“anyorganizationinwhichanindividualisengaged”and“relations”mean“therelationsthatexistintheindustrybetweentheemployerandhisworkmen.”


Notes


The term, industrial relations, explains the relationship between employees and management, which stem directly or indirectly from union employer relationship”

– V. Agnihotri

AccordingtotheILO,“Industrialrelationsdealwitheithertherelationshipbetweenthestateandemployer”organizationsortherelationsbetweentheoccupationalorganizationsthemselves.”

10.1 Industrial Relations

The problem of industrial or labourmanagement did not arisewhen business organizationsweresmall,buttheydevelopedonlywhenelaborateorganizationalstructurecameintobeingduringthelatenineteenthcenturyfollowedbythetechnologyofmassproductionintheearlytwentiethcentury.Labourmanagementbecamean important subjectof thestudyonlywhenlargeaggregationsofpeoplecametoworktogetherunderoneroofinanorganization.

Evolutionofindustrialsystemhaspassedthroughthefollowingstages:

1. Primitive Stage: Necessities of lifewere simple, few andmostly provided by hunting,fishingetc.Productionwas justsufficientforconsumptionandtherefore, therewerenosavings,noaccumulationofwealthandnoexchangeofproducts.Authoritywasexercisedby elderly people – family (senior patriarch ormatriarch)with generally having goodexperience,senioritystatusandmostlytheeldestinthefamily.

2. Agrarian Economy Stage: There arose a class of propertied individuals and a class of propertylessworkers.Theemployee-employerrelationshipwasthatofthemaster-servant/slavetype.Theslavehadtoliveundertheabsoluteauthorityofhismastertilldeath.Thegovernment did notwield any power in determining employer-employee relationship.Politicalorganizationsthatdevelopedfromallianceandconquestssupportedtheauthorityof the owners.

3. Serfdom Stage: Serfdomdevelopedunder the feudal society (comprisingprinces, lordsand land owing class). Their position was not better than that of slaves. Their duties and obligationsweredefinedlargelyintermsofthequantitiesofproducetheyhadtogivetotheirmasters.

4. Handicraft Stage: The handicraft stage developed because of the growth of towns and cities,increaseintradeandcommerceanddeclineinthepowerofthefeudallords.Thecraftsmen owned the factors of production,workedwith their own tools andwith thehelp of themember of their family and performedmanual tasks. The cottageworkersof themaster craftsmendevelopedanew institution, the craftsguilds.These regulatedtheeconomicandemploymentconditionsofthemember,qualityofmaterialssetpricesanddeterminedwages.Theyalsoprovidedbenefits,suchasincaseofdeath,disability,unemployment,totheirmembers.

5. Cottage or Putting-out Stage:Withthedevelopmentofeconomicsystem,steampower,someindividualsbecameemployeesinthenewindustrialunitswhichwerebroughtasaresultofbothtechnologicalchangesandtheexpansionofmarketsandtrade.Othermaster-craftsmenortravellingtradersundertooktobuyrawmaterialsandsupplytheseaswellasfinancetothecraftsmenwhoworkedintheirhomesandworkshops.

6. Factory or Industrial Capitalism Stage:Insteadof‘framingout’,productiontonumeroussmall,cottageworkers,thecapitalisttraderhimselfsetupafactoryandofferedemploymentto thosewhowerewilling towork for him.With the inventionof andmanufacture ofpower drivenmachinery in late eighteenth and nineteenth century. In course of time,humanlabourwasreplacedbymachines.ThisgaverisetotheIndustrialRevolution.


Notes


Underthissystem-

(a) Womenandchildlabourwereemployed.

(b) Livingandworkingconditionsweredeplorable.

(c) Housingaccommodationswereinadequate.

(d) Relationshipbetweenworkersandemployerswasimpersonal.

(e) Workerswerebroughtunderoneroofandstrictdisciplinewasmaintainedbytheemployers.

(f) Since the workers did not have means of production, they were economicallydependentontheemployersformeansoflivelihood.

(g) Thesupplyanddemandoflabourdeterminedthewages.

(h) Thehumanelement in theproductiondisappearedbecause theemployerhadnopersonaltiewiththeworkers.

(i) Maximizationofprofitwasthesolefactorwhichdominatedthefactorysystem.

(j) Inter-personal relations were eroded to a considerable extent.

Did u know?Harmoniousindustrialrelationsbetweenlabourandmanagementareessentialtoachieve industrialpeaceandhigherproductivity.Whentherelationshipbetweentheparties is not cordial, discontentment develops and conflicts erupt abruptly. It is notalwayseasytoputoutthefireswiththeexistingdispute-settlement-machinery,createdbythegovernment.Hencebothlabourandmanagementmustappreciatetheimportanceofopenness,trustandcollaborationintheirday-to-daydealings.

10.1.1 Theories of Industrial Relations

There are varied theories of industrial relations providing an integrated view of the activities in field.Thesetheoriescanhelpinanalyzingindustrialrelationstoevolvearelevantframeworkfor Indian context. In general, Jerome Joseph classifies theories of industrial relations in twocategories:“politicalandapolitical.”

Political vs Apolitical Theories

The political theories of industrial relations are concerned with:

1. Macrosocialquestionssuchasthepolitical-economicpurposeofsociety.

2. Issues such as the class characteristics of the state, conflict between the classes, theexploitativeelementofeconomicandindustrialstructuresandsystems,privatevsstateownership,theroleandvoiceoftheworkingclassesandtheneedforchangeofpoliticalpower.

3. Theprotectionandpromotionoftherightsandinterestsoftheworkingclassesandtheirorganisationsusingvariedmeasuresavailabletotheworkingclasses.

The‘apolitical’theoriesofindustrialrelationsareconcernedwith:

1. Microorganizational questions at the strategic, functional andoperational levels of thefirmortheindustry.

2. Proceduralissuessuchasevolvinglawsandrulestoregulateworkingclassorganisationsandactionatstrategic,functionalandoperationallevelsofthefirmsortheindustry.


Notes


3. Substantive issues suchas competitiveadvantage,market-orientation,productivityandtechnologicaldynamismtakeprecedenceoverconcernsrelatedtocollectiveorganisationandactionorlargerpoliticaleconomicpurposes.

Specifically,thetheoriesofindustrialrelationsinclude:

1. TheMarxiantheoriesofLenin,Trotsky,Michels,MarxandEnglesandHyman

2. ThePluralistApproachrepresentedbyFlanders,CleggandFox

3. WebersSocialActionTheory

4. MillerandForm’smodel

5. Dunlop’smodel

Dunlop’s Model

Dunlop,aHarvardProfessorexplains industrial relationsasa system involvingworkersandtheirorganization,managersandtheirorganizationandgovernmentalagenciesconcernedwiththeworkenvironment,workplaceandworkcommunity.Everyindustrialrelationsystemcreatesacomplexsetofrulessuchasagreement,statutes,orders,decrees,regulation,award,policies,practicesandcustoms.

Theactors inindustrialrelationssystemconfrontanenvironmentalcontext.Theenvironmentinvolvesthreeinterrelatedcontextsincludingtechnology,themarketorbudgetaryconstraintsand the power relations and statute of the actions.

Dunlopcomparesseveral rules from industrial relationssystem incoalmining in8countriesincludingtheUS,GreatBritain,France,Germany,Italy,Australia,NewZealandandPoland.Healsocomparestherulesformedbybuildingsectorsin9countries.

Hepointsoutthatsomerulesaredirectlyconcernedwithtechnologicalandmarketcontextsofthesystem,whileothersarerelatedmoreuniquelytopowerstatusoftheactorsinthesocietyingeneral.Forexample,thereprevailseveralsimilarrulesinbuildingandcoalminingthroughouttheworlddespitedivergenteconomicandpoliticalsystem.

Thecommonalityofrulesisbecauseofthecommonfeaturesofthetechnologicalandbudgetarycontexts.Itshouldberecognizedthatinsomecases,thecommonelementsofrulescanbeattributedtothemigrationofworkers,managersandengineeringenterprises.Forexample,thedistributionofconcessionarycoalintermsofthesizeofthefamilyincountriessuchasFranceandGermanyandequallyamongAmericansandBritishhouseholdsindicatesnationalindustrialrelationsinaruleprimarilyorientedtowardsacommontechnologicalandmarketcontexts.Similarly,thestatusoftheactorstendstoinfluencetheformsandthefunctionsofthespecifichierarchies.

ItrepresentstheIndianindustrialsystemasasubsystemofindustrialorindustrializingsociety.Societyisinfluencedbyseveralexternalfactorsincludinginternationalrelations,globalconflicts,dominantsocio-politicalperspectiveaboardandoperationsofinternationalorganization,suchasILO.Itattemptstodevelopacommonnationalideology.Theeconomic,socio-politicalandtechnologicalfactorsinfluencetheinterrelationshipofgovernment,businessandlabour.Theirinteractionsgiverisetotheformulationofrulesofbehaviourincludinglabourlaws,voluntarycodes and collective bargaining.

!Caution “Bargaining zone” istheareaboundedbythelimitswithinwhichtheunionandemployeesarewillingtoconcede.


Notes


Notes Some Basic Facts about IR

Theserelations,however,donotconstituteasimplerelationshipbutareasetfunctionalinter-dependence involving historical, economic, social psychological, demographic,technological, occupational, political, legal and other variables- needing an inter –disciplinaryapproachfortheirstudy.

Industrialrelationsdonotfunctioninavacuumbutaremulti-dimensionalinnature,andareconditionedwithfoursetsofdeterminants,namely;

1. Institutional factors: Under institutional factors are included such itemsas statepolicy, labour laws, voluntary codes, collective agreement, labour unions andemployers’organizations,socialinstitutions.

2. Economic factor: Under economic factors are included economic organization(socialist, capitalist, communist, individual,ownership, companyownership, andgovernmentownership),inflationarysituation,recessionandexpandingeconomy.Inthesesituations,labour-managementrelationshipvariessubstantially.

3. Technological factors: Technologicalfactorsincludethetechniquesofproductions,modernization, rationalization, capital structure, etc. There is a conflict betweenlabourandcapitalintensiveindustries.Effortshavebeenmadebytheorganizationstoadopttechnicalchanges,whilesomeorganizationsarestillcarryingonwiththelessproductiveprimitivetechnologies.InIndia,wehaveamixedeconomywhichnotonlystressesonco-existenceofthepublicsectorsandtheprivatesector,butalsospecifiesmutuallysupportiverolesforboth.

4. Socio-political factors: Socio-politicalfactorsincludetherelativestatus,pullsandnearnesstothecentersofpoweroflabourandemployer.Thesefactorsexertmarkedimpactonlabour-managementrelations.

In India, we come across the changing roles of three factors that is, management,government and trade unions. Tripartismhas grown substantially in the country. Thegovernmentcontinuestoplayaninterventionistrole.

Sometimes external factors such as international relations, global conflicts, dominantssocio-political ideologies, and the operations of international bodies (such as the ILO)influenceindustrialrelationsincountry.

10.1.2 Objectives of Industrial Relations

1. Improvingtheeconomicconditionofworksinexistingstateofindustrialmanagementandpoliticalgovernment.

2. Controlbythestateoverindustriestoregulateproductionandindustrialrelation.

3. Socializationornationalizationofindustriesbymakingthestateitselfanemployer.

4. Vestingtheproprietorshipofindustriesintheworkers.

Self Assessment


1. Collective bargaining is a one-shot deal.


Notes


2. Collective bargaining has notmademuch headway in India when compared to otherindustrialised nations.

3. Collective bargaining is a tripartite process.

4. TheTradeUnionsActcameintoexistenceinIndiain1906.

5. Friendlyattitudesthatunionsandmanagementholdtowardeachothercanleadtosevereconflictsandresultinpoororganisationalperformance.

6. Aunionisaninformalassociationofworkersformedtoprotecttheinterestsofitsmembersthrough collective action.

7. Generallyspeaking,thelargertheunionmovement,thegreateritspower.

8. Labouralwayswantsamajorshareofproductivitygains.

9. A strike undertaken to show sympathy with workers in other industries is called a“sectional”strike.

10. Strong trade unions help prevent industrial disputes.

11. Lock-outmeansclosingdowntheplaceofbusinessbutnotthebusinessitself.

12. Thereisnoemployer-employeerelationshipwhenpaymentismadeonapieceratebasis.

10.1.3 Scope and Aspects of Industrial Relations

In itswider sense, industrial relations include the relationship between an employee and anemployeeinthecourseoftheruiningofanindustryandmayprojectitselfintospherewhichmay transgress into theareaofquality control.Theassociationofvariouspersons,workmensupervisorystaff,managementandemployercreatesanindustrialrelationship.Inotherwords,industrial life creates a series of social relationship,which regulate the relation andworkingtogetherofnotonlyworkmenandmanagement,butalsoofthecommunityandtheindustry.

1. Labour relations: relation between union and management also know as labour asmanagementrelation.

2. Employeremployeerelationi.e.relationsbetweenmanagementandemployees.

3. Group relation:relationbetweenvariousgroupsofworkmen.

4. Communityorpublicrelationsi.e.relationsbetweenindustryandsociety.

Thelasttwoaregenerallynotconsideredforstudyunderindustrialrelationsbutaspartofthelargerdiscipline–sociology.

Themainaspectsofindustrialrelationsare:

1. Promotionanddevelopmentofhealthylabormanagementrelation

2. Maintenance of industrial peace and avoidance of industrial strife and

3. DevelopmentsofIndustrialdemocracy.

Development of Healthy Labour-management Relations

1. The existence of strong, well-organized, democratic and responsible trade unions andassociation of employers. These associations also tend to create vantage grounds fornegotiationsconsultationsanddiscussiononamutualbasiswhichultimatelyleadtogoodlabour-managementrelations;

2. Spirit to collectivebargainingandwillingness to take recourse tovoluntaryarbitration.Collective bargaining recognizes equality of status between apposing and conflicting


Notes


groupsandpreparestheground,inanatmosphereoftrustandgoodwill,fordiscussions,consultationandnegotiationonmatterofcommoninteresttobothindustryandlabour;

3. Welfarework–whetherstatutoryornon-statutory–providebythestatetradeunionsandemployers to createmaintain and improve labourmanagement relations try to achievepeaceintheindustry.

10.2 Trade Unions

Tradeunionsareallorganizationsofemployees, including thoseof salariedandprofessionalworkers aswell as those ofmanualwage earnerswhich are known to include among theirfunctions that of negotiatingwith their employeeswith the object of regulating condition ofemployment”.

—British Ministry of Labour

Trade union is a continuous and long duration workers organization which is meant forattainmentofspecificobjectivetoprotecttheinterestofitsmembersandfortheimprovementoflabour relations.

—Dale Yoder

Atradeunionistheworkers—organizationswhichisestablishedbytherecollectiveactivitiestothewelfareofthemembersinsocialeconomicandpotentialinterestsandtokeepthemsecuredandforimprovementinit”

—Edwin B. Flippo

10.2.1 Nature and Characteristics of Trade Union

1. Thetradeunionisacontinuinglong-termassociationofworkers.Theyarenottemporaryor casual association.

2. Tradeunionmaybeanassociationeitheroftheemployeesorofindependentworkers.

3. Theunionisessentially“acooperativelabourmarketingassociation”.Itisanassociationofworkerswhoareengagedinsecuringeconomicbenefit(sometimessocial,politicalandculturalbenefitsinterestfortheirmembers).

10.2.2 Objectives, Function and Role of Trade Unions

1. Toimproveworkingandlivingconditions.

2. To offer responsive cooperation in improving levels of production and productivity,disciplineandhighstandardofquality.

3. Tosecureforworkersfairwages.

4. Toenlargeopportunitiesforpromotionandtraining.

5. Topromoteidentityofinterestsoftheworkerswiththeirindustry.

6. Tocooperateinandfacilitatetechnologicaladvancebybroadeningtheunderstandingofworkersonitsunderlyingissues.

7. Topromoteindividualandcollectivewelfare.

8. To provide for educational cultural and recreational facilities.

9. Tosafeguardsecurityoftenureandimproveconditionofservice.

10. Installingintheirmembersasenseofresponsibilitytowardsindustryandcommunity.


Notes


11. Theunionsarealsoexpectedtofulfillcertainsocialresponsibilitylikepromotionofnationalintegration.

12. Generallyinfluencingthesocio-economicpolicesofcommunitythroughactiveparticipationintheirformulationatvariouslevels.

10.2.3 Advantages and Importance of Trade Unions

Tradeunionsareveryimportanttolabour,theindustrialistsocietyandcountry.Everygroupisbenefitedbythepresenceofthosegroups.Benefitstodifferentgroupsareasfollows:

Advantages to Labour:Labouracquiresmainlyfollowingbenefitsfromtradeunions:

1. Reducingthetendencyoflabourexploitation.

2. Itleadstounityinlabourforce.

3. Openthedoorofoveralldevelopmentoflabour.

4. Labourgettheopportunitytoparticipateinmanagement.

5. Increaseinefficiencyduetoimprovementinworkingconditions.

6. Labourgetseconomicandentertainmentfacilities.

Advantages to Employer and Industrialists: Industrialists derive following advantages fromtrade unions:

1. Unioncanhelpinavoidingconflictbycollectivetalksandcollectivebargaining.

2. Unionhelpstopacifyconflictatthetimeofindustrialconflict.

3. Union promotes the feeling of unity cooperation and fraternity which lead to theco-operationatthetimeoftheirwork.

4. Unionsprovideeducationtrainingandentertainmentfacilitiestolabourwhichgivestheindustryatrainedconsciousandeffectiveworkforce.

Advantages to Society and Country: Labour unions are the representatives of labour who put theproblemofideas,feelingandwelfareoflabourbeforethecountry.Inthisway,societyandthecountryunderstandthemanpowerofthecountry,whichmakespossibleforthegovernmenttomakelabourpoliceslabourlawswhichareincoherencewiththeconservationandprosperityofmanpower in the country. In short,we can say that unions promote productivity, labourco-operationetc.tomakeapracticalgroundfortheideaofapermanentandconsciouslabourforcefortheoveralldevelopmentofthecountry.

10.2.4 Weaknesses of Trade Unions

1. Manytradeunionsaresmallandhaveasmallnumberofmembers.Theyaretherefore,notinapositiontoengagetheservicesofexportstoadviseandguidethemandhelpthemtofacethechallengeofemployers.

2. Politicalleadershaveacquiredcontrolovertradeunionactivities.Asaresult,tradeunionsarenotasstrongastheyshouldbe.

3. Trade unions now have become the centre of political activity rather than workerswelfare.

4. Smallunionshaveweakfinancialpositionbargainingpositionand theyarenotable tomaketheirinfluencefelt.

5. Thegovernmentencouragementofweakanddependenttradeunions.


Notes


6. Tradeunionswhichhavegrownveryslowlyhavenotdevelopedasvoluntaryorganizationsbecause of:

(a) Moralidealismaboutgoalsandoptimismaboutachievingthem.

(b) Thegovernmentencouragementofweakanddependenttradeunions.

(c) Theunrealisticlabourpolicesofthegovernment.

7. Thepoliticalinvolvementoftradeunionleadersandunionrivalrieshaveweakenedthetradeunionmovement.

8. Tradeunionactivityisgenerallyconcentratedinmetropolitancentreswherelargescaleindustryislocated.

Task Examine the human relations approach to Industrial relations with respect toserviceindustry.

10.2.5 Causes of Slow Progress of Trade Unions in India

TheNationalCommissiononLabourhas recommended the followingpoints to improve thefunctioningoftradeunionsi.e.,strengtheningthebargainingpoweroftheunions.ThefollowingreasonswereidentifiedfortheslowprogressoftradeunionsinIndia:

1. Rivalries: Asfaraspossible,thecentralorganizationshouldsettleintra-unionrivalriestoeliminatetheproblemsarisingfrommultipleunionsthecommissionhasrecommendedoneuniononeindustry.

2. Political Influences:Toeliminatepoliticsandoutsider,thecommissionfeltthatinternalleadershipmust be builtwithin theunion leadership shouldbepromoted fromwithintherankandfileandgivenamoreresponsibleroleinitiativeshouldcomefromworkersthemselvesthroughthelaunchingofaprogramforworkerseducation.

3. Registration: The commission recommended that registration should be cancelled ifmembership fallsbelowtheminimumlimitor theunions fail to submit the return inaproperway.

4. Financial crunch: To improve the financial condition of the union, the commissionrecommendedthatthemembershipfeesshouldberaisedto`1permonth.

10.2.6 Weaknesses of the Trade Union Movement in India

InIndia,thefirstunionwasestablishedinBombay(calledtheBombayMillsHandsassociations)in1890.Tradeunionswerebornofthenecessityoftheworkerstoprotectanddefendthemselvesfrom encroachment injustice and wrong. At present, there are more than 43,000 registeredworkersunionand10 central labourorganizations in India.The functionsand rolesof tradeunionshavebeenchangingsteadilyespeciallyafterindependence.Totalmembershipincentralunions ismore than 60 lakh today.The functionsof tradeunion involvenot onlyprotectingand improvingwagesandconditionsof labourbut theyconcern themselveswithallmattersbywhichtheworkersarelikelytobeaffected.Inspiteofitssocialandlegalimportancetradeunionismhassufferedforaconsiderableperiodandisstillsufferingtoacertainextentfromanumberofproblems,whichinclude:

1. Manyunionshaveconcentratedinmetropolitancentreswherelargescaleindustriesarelocated.


Notes


2. Loose and amorphous nature of trade union organizations, casteism, regionalism andlinguism,whichhavedangerouslydividedtheworkersintovariousheterogeneousgroups,resultinginintra-unionrivalriesandhostileattitudetowardsemployers.

3. Undertheinfluenceofhistoricalandinstitutionalfactorsanddevelopmentsinthesocio-economicandpoliticalfieldtrade,unionshavebecomehighlypolitical innature. Ithassignificantlyweakenedthetradeunionmovementitself.

4. Smallmembershipandunsuccessfulstrikeshaverenderedtradeunionsunproductiveandredundant.

5. Theattitudeofemployerisnotpositivetowardstradeunion.Forseveraldecadesemployerhavebeen intimidatingandvictimizing labour leaders,promoting rivalunions,bribingunionofficialsandhaveexploitedthemintakingadvantageofcommunalfactors.

10.3 Industrial Conflict/Dispute

Industrialconflictisarathergeneralconcept.Whenitacquiresspecificdimensions,itbecomesan industrial dispute. The various terms, such as “industrial dispute” “labour dispute” or“tradedispute”areusedindifferentcountriestoidentifythedifferencebetweenemployersandworkers.

AccordingtotheindustrialdisputeAct,1947,Section2(k):“industrialdisputemeansanydisputeordifferencebetweenworkmenwhichisconnectedwiththeemploymentornon-employmentortermofemploymentorwiththeconditionsoflabourofanyperson.”

Foradisputetobecomeanindustrialdispute,itshouldsatisfythefollowingessentials:

1. Theremustbeadisputeoradifference

(a) betweenemployers

(b) betweenemployerandworkmen

(c) betweenworkmenandworkmen

2. Itisconnectedwiththeemploymentornon-employmentorthetermsofemploymentorwiththeconditionsoflabourofanyoritmustpertaintoanyindustrialmatter.

3. Aworkmandoesnotdrawwagesexceeding` 1,600permonth.

4. Therelationshipbetweentheemployerandtheworkmenmustbeinexistenceandshouldbetheresultofacontractandtheworkmenactuallyemployed.

5. Thereshouldbeanindustry,employerandworkmen.Theremustbea“collectivewill”of substantialorappreciablenumberofworkmen takingup thecauseof theaggrievedworkmen. Itmustbefirst raisedwith themanagement rejectedby it, i.e., theemployermustbeinpositiontoredressthegrievance.

However,everyfirmwouldwanttoavoidanytypesofconflictsaslongaspossible.Forasmoothandharmoniousfunctioningofabusiness,itisnecessarythatitdoesnotcounteranydispute.Butthereisnoplacewherethereisnomisunderstandingsormismatchingofdifferentpeople’sopinion.Whenthereispluralityofpeoplepresentthenarisestheproblemofconflicts.Thereforeit is important that managers and other concerned authorities concentrate on reducing thepossibilitiesofarisingdisputesforthis.Thereareanumberofwaysbywhichdisputescanbeprevented.Butmanyatimes,despitetakingallpossiblepreventivemeasures,disputesariseandthenitisrequiredthatpropersettlementmeasuresarepresentthroughwhichthedisputescanbehandled.Belowisbriefstudyaboutthepreventiveandsettlementmeasuresusuallytakenbydifferentfirmsinhandlingdisputes.


Notes


10.4 Dispute Resolution

10.4.1 Preventive Machinery

Followingarethemeasuresusedinpreventingdisputesinanyindustry:

Tripartite and Bipartite Bodies

TheneedforconsultationonlabourmattersonthepatternssetbytheI.L.O.wasrecommendedby theWhitley Commission in 1931. It envisaged a statutory organizationwhich should besufficiently large to ensure adequate representation of the various interests involved; but itshouldnotbe too large toprevent themembers frommaking individualcontributions to thediscussions.Therepresentativeofemployers,oflabourandofgovernmentshouldmeetregularlyin conference. The commission also recommended that labour members should elected byregisteredtradeunionsandemployers’representativesshouldbeelectedbytheirassociations.ButtherecommendationwasnotimplementedandnothingcouldhappenuntiltheoutbreakofSecondWorldWar,whichnecessitatedtheneedofindustrialpeace.

IntheFourthLabourConferenceheldinAugust1942,setuppermanenttripartitecollaborationmachineryandconstitutedapreliminarylabourconference(laternamedastheIndianlabourconference-ILC)andthestandingLabourAdvisoryCommittee(latertheword‘Advisory’wasdropped).ThepatternofrepresentationwasgovernedbytheobtainingintheILC.Itensured:

1. Equality of representation between the government and the non-governmentrepresentatives;

2. Paritybetweenemployersandworkers;

3. Nomination of representatives of organized employers and labourers was left to theconcernedorganizations;and

4. Representationofcertaininterests,wherenecessary,onanadhocbasisthroughnominationbythegovernment.Thedelegatesarefreetobringoneofficialandonenon-officialadvisorwiththem.

Indian Labour Conference (ILC)

ThefunctionoftheILCisto“advisetheGovernmentofIndiaonanymatterreferredtoitforadvice, taking into account suggestion made by the provincial government, the states andrepresentativesoftheorganizationofworkersandemployers.”TherepresentativesoftheworkersandemployerswerenominatedtothesebodiesbytheCentralGovernmentinconsultationwiththeallIndiaorganizationsofworkersandemployers.

Therulesandprocedures,whichcharacterizetheIndiantripartiteconsultativemachinery,arelargelyintunewiththerecommendationsofILOCommitteeonconsultationandcooperation.Inthisconnection,thefollowingguidelineshavebeensuggested:

1. Useofflexibleprocedures;

2. Calling a meeting only when necessary with adequate notice of the meeting and theagenda;

3. Referenceofcertainitemstoworkingparties,ifnecessary;

4. Dispensingwithvotingprocedureinarrivingatconclusionstofacilitateconsultation;

5. Maintaining records of discussion in detail and circulating the conclusion reached to all participants;


Notes


6. Documentationofreference;and

7. Provisionof aneffective secretariat anda small representative steeringgrant in caseofmoreformalconsultativemachinery.

Standing Labour Committee

SLC’smainfunctionisto“considerandexaminesuchquestionsasmaybereferredtoitbythePlenaryConferenceor theCentralGovernment,and to renderadvice taking intoaccount thesuggestionsmadebyvariousgovernments,workersandemployers.”

The agenda for ILC/SLC meetings was settled by the Labour Ministry after taking intoconsiderationthesuggestionssentbyittothememberorganizations.Thesetwobodiesworkedwithminimumproceduralrulestofacilitatefreeandfullerdiscussionsamongthemembers.TheILCmeetsonceayearwhereastheSLCmeetsasandwhennecessary.

Committee on Conventions

Thisisathree-mantripartitecommitteesetupin1954.Theobjectswere:

1. ToexaminetheILOconventionsandrecommendationswhichhavenotsofarbeenratifiedbyIndia;and

2. TomakesuggestionswithregardtoaphasedandspeedyimplementationofILOstandards.

Industrial Committees

These committees provide a forum for the discussion of proposals for legislations and othermatters connectedwith labour policy and administration before they are finally brought upbeforethelegislature,sothatthepassageofthelegislationmaybefacilitated.

Works Committees

These committees have been regarded as the most effective social institution of industrialdemocracyandasastatutorybody,establishedwithintheindustrialunitswithrepresentativesof themanagement andworkmen, forpreventing and settling industrialdisputes at theunitlevel.Theworkscommitteecanbeformedbyanyenterprise,employing100ormoreworkers.

Joint Management Council

Thesecommunitiesgivelabouragreatersenseofparticipationandinfuseaspiritofco-operationbetween the twopartieswithout encroachinguponotherpeople’s sphereof influence, rightsprerogatives.Thesecommunitiesalsoaimatmakingthewilloftheemployeeseffectiveinthemanagement, insure the operationof theprivate-owned concern in conformitywithnationalinterests and provide for a popular agency for supervising themanagement of nationalizedundertakings.

10.4.2 Settlement Machinery for Resolving Disputes

Varioustypesofsettlementmachineryinvolvedareasfollows:

Conciliation

Conciliationmaybedescribedasthepracticebywhichtheservicesofaneutralthirdpartyareusedindisputeasameanofthehelpingthedisputepartiestoreducetheextentoftheirdifference


Notes


andtoarriveatanamicablesettlementoragreedsolution.Itisaprocessofrationalandorderlydiscussion of difference between the parties to dispute under the guidance of conciliator.

Itisaprocessbywhichrepresentativesofworkersandemployersarebroughttogetherbeforeathirdpersonorgroupofpersonwithaviewtopersuadingthemtoarriveatanagreementbymutualdiscussionbetweenthem.

Types of Conciliation

Conciliationsareoftwotypeswhichareasfollows:

1. Voluntary Conciliation: In voluntary conciliation, the disputes are referred to theconciliationofficerortheboardofconciliationbybothpartiesoftheirownfreewill;theytohavetheirdisputesettledbyanoutsider;buttheyarefreetoacceptornottoacceptthedecision.

2. Compulsory Conciliation: In compulsory conciliation, the disputes are referred to theboardofconciliationunderit,theprocedureismadecompulsorybyprovisionrequiringtheparties’attendanceatconciliationproceedingorempoweringtheconciliationauthorityto compel their attendance at such proceeding, aswell as by prohibition of strike andlockoutwithoutpriorresorttoconciliation.

Arbitration

Arbitrationisameansofsecuringanawardonaconflictissuebyreferencetoathirdparty.Itisaprocessinwhichadisputeissubmittedtoanimpartialoutsiderwhomakesadecisionwhichisusuallybindingonboththeparties.Itisaprocesswherethereisahearingandadeterminationofacausebetweenpartiesincontroversybyapersonorpersonschosenbythem,orappointedunder a statutory provision. The parties submit their disputes/issues and are bound by theawardofanarbitratorinrelationtothematterwhichisindisputebetweenthem.

Types of Arbitration

Arbitrationmaybe‘voluntary’ or ‘compulsory’.

Voluntaryarbitrationimpliesthatthetwocontendingparties,unabletocomposetheirdifferencesby themselves orwith the help of themediator or conciliator, agree to submit the conflict/disputetoanimpartialauthority,whosedecisiontheyarereadytoaccept.Inotherwords,undervoluntaryarbitration,thepartiestothedisputecananddotheyrefervoluntarilyanydisputetoarbitrationbeforeitisreferredforadjudication.Thistypeofreferenceisknownasa‘voluntaryreference’,forthepartiesthemselvesvolunteertocometoasettlementthroughanarbitrationmachinery.

Theessentialelementsinvoluntaryarbitrationare:

1. Thevoluntarysubmissionofdisputetoanarbitrator;

2. Thesubsequentattendanceofwitnessesandinvestigation;

3. The enforcement of an award may not be necessary and binding because there is nocompulsion. But, generally, the acceptance of arbitration implies the acceptance of itsaward-befavorableorunfavorable;and

4. Voluntaryarbitrationmaybespeciallyneededfordisputesarisingundertheagreements.

Compulsory arbitration, on the other hand, is one where the parties are required to acceptarbitrationwithoutanywillingnessontheirpart.Whenoneofthepartiestoanindustrialdisputefeelsaggrievedbyanactoftheother,itmayapplytotheappropriategovernmenttoreferthe


Notes


dispute to adjudicationmachinery. Such reference of a dispute is known as ‘compulsory’ or‘involuntary’reference;becausereferencesinsuchcircumstancesdonotdependonthesweetwillofboththecontendingpartiesoranypartytothedispute.

Compulsoryarbitrationleavesnoscopeforstrikesandlockouts;itdeprivesboththepartiesoftheirveryimportantandfundamentalrights.

Advantages of Arbitration

Followingaretheargumentsforarbitration:

1. Sinceitisestablishedbythepartiesthemselves,arbitrationhastheparticularadvantagesof bringing the dispute settlement procedure down to the level of the parties to thedispute.Workersandmanagementtendtohavegreaterfaithandconfidenceinsettlementmachinerywhichisineffectoftheirown.

2. Sincearbitrationisestablishedbyagreement,itismoreflexiblethanotherproceduresandcanbeadjustedtotheviews,desiresandexperienceofthepartiesandtothecircumstancesobtainingintheundertakingorindustry.

Evils of Arbitration

Followingaretheargumentsagainstarbitration:

1. Itdeprivesof its right togoona strike, for there isoftenaprovision in theagreementthatthetradeunionsandworkerswillrefrainfromastrikeduringthecontinuanceoftheagreements.

2. Judgment isoftenarbitraryand ill-advisedas thearbitratorsarenotwell-versed in theeconomicandtechnicalaspectsofindustry.

Adjudication

Theultimatelegalremedyforthesettlementofanunresolvedindustrialdisputeisitsreferencetoadjudicationbythegovernment.Adjudicationinvolvesinterventioninthedisputebyathirdpartyappointedbythegovernmentforthepurposeofdecidingthenatureoffinalsettlement.

Ongettingareportofthefailureofconciliation,thegovernmenthastodecidewhetheritwouldbe appropriate to refer the dispute to adjudication. The rationale behind this is that developing countriescanill-affordtosufferlossofproductionflowingfromlong-drawnstrikesandlockouts.Further,thetrade-unionmovementisyetnotstrongandmatureenoughtoadoptandrelyonlyoncollectivebargainingortheprotectionoftheinterestoftheworkers.Therefore,theneedofinterventionbythegovernmentisfelt.

Types of Adjudication

Whenthegovernmentgetsareportof thefailureofconciliationproceedings, ithastodecidewhether it would be appropriate to refer the dispute to arbitration. The reference of dispute to adjudicationisatthediscretionofthegovernment.

Whenbothparties,attheirownaccord,agreetoreferthedisputetoadjudication,itisobligatoryonthepartofthegovernmenttomakeareference.Whenareferencetoadjudicationismadebytheparties,itiscalledVoluntary Adjudication.

On the other hand,when reference ismade to adjudication by the governmentwithout theconsentofeitherorboththepartiestothedispute,itisknownasCompulsory Adjudication.


Notes


Self Assessment

Fillintheblanks:

13. …………………maybedescribedasthepracticebywhichtheservicesofaneutralthirdpartyareusedindisputeasameanofthehelpingthedisputepartiestoreducetheextentoftheirdifferenceandtoarriveatanamicablesettlementoragreedsolution.

14. …………………isameansofsecuringanawardonaconflictissuebyreferencetoathirdparty.Itisaprocessinwhichadisputeissubmittedtoanimpartialoutsiderwhomakesadecisionwhichisusuallybindingonboththeparties.

15. ………………… involves intervention in thedispute by a thirdparty appointed by thegovernmentforthepurposeofdecidingthenatureoffinalsettlement.

Case Study Delayed Flight

TheoperativemanpowerpershiftatacertainAviationStationFuel(ASF)locationisonesupervisor,onespecialcrewman,onecrewmanandonerefuellingoperator.Normallythespecialcrewmanattendstotherepairsandmaintenanceofthehydrant

and also drives Refueler (Tanker). The RefuellingOperator also drives the Refueler asrequired.Thedutiesofthecrewmanarebasicallyashelperstodosuchworkastoliftthehosepipes,hookthemupintotheaircraft,rewindthemtotheTankerandsuchincidentalwork. Crewman is the lowest job, progressively promotable to special crewman afteracquisitionofnecessaryskills,andthentorefuellingoperator.

Dependingonthetrafficattheairport,theshifttimingsatthisparticularASFlocationhavebeenfixedfrom8.00a.m.to4.00p.m.(Ashift)and2.00p.m.to10.00p.m.(Bshift).

OnagivendayatthisparticularASFlocation,Mr.KapoorwastheSupervisorintheAshiftandMr.SukumarwastheSupervisorintheBshift.SpecialcrewmanSingh,refuellingoperatorDhirandcrewmanBajajwerescheduledfor theBshift.WhileSinghandDhircametoworkcrewmanBajajdidnotturnupatthestartofthesecondshift.

RefuellingoperatorDhirinformedSupervisorSukumarat2.00p.m.thatBajajhadsentamessagethathewouldbecominglatebyanhourorsoashehadtoattendtosomeurgentpersonalwork.DhirhasalsoadvisedPatel,thecrewmanoftheAshift,togohomeaftercompletionofhisnormalshiftasBajajwouldbecomingtowork.

WhenBajajdidnotturnupevenat4.00p.m.theshiftsupervisorSukumarrequestedtheoutgoingcrewmanoftheAshiftPateltocontinueintheBshiftonO.T.Mr.SukumaralsoreportedthemattertoMr.KapoortheotherSupervisorwhohaddecidedtostaybackintheBshiftalsoinviewoftheairtrafficintheeveninghours.

Mr.Bajajreportedfordutyat4.45p.m.almost3hourslate.ThereforeMr.Sukumardidnotallowhimtoresumedutyandaskedhimtogohome.Atabout5.15p.m.theIndianAirlinesBoeing:waskeptreadyforrefuelling.HavingnoticedthatPatelhasgonehomewithoutcontinuinginB-shift,SupervisorSukumarrequestedSinghthespecialcrewmantodrivetheTanker.ButMr.Singhexcusedhimselfonthepretextthathewasbusywiththerepairingofthehydrantthoughnoworkwasassignedtohimforthatpurposeatthattime.Mr.SukumarthenrequestedDhirtheRefuellingOperationtodrivethevehicle.ButDhirinsistedthathewoulddrivetheTankeronlywiththehelpofacrewman.SukumarvolunteeredtohelpactasacrewmansothattheaircraftcouldberefuelledwithoutfurtherdelaybutDhirrefused.

Contd…


Notes


Sincetheaircraftwasalreadydelayedbyover2hourstillthen,SupervisorKapoorrushedtoanotherOilCompanyofficenearbytorefuelthestrandedaircraft.Bythetimetheaircraftleft,itwasalready8.00p.m.andat8.30p.m.anotheraircraftwaspositionedforrefuelling.Becauseofthisnightmarishexperience,boththesupervisors,KapoorandSukumar,haddecidedtorefueltheaircraftallbythemselves—whichtheydid.

Questions

1. HasSukumar(BshiftSupervisor)takencorrectstepinnotallowingBajajtoreportforduty?

2. WasSinghjustifiedinrefusingtherequestofSukumartodrivethetanker?

3. WasSukumar’sinstructiontoDhirtodrivethevehicle,areasonableorder?

4. Whoisatfaultinthisepisode?

5. Howcouldsuchasituationhavebeenavoided?

6. WhatwastheroleofKapoorinthisincident?

7. WhatarethelessonstobedrawnfromsuchIRsituations?

8. HasPatelcommittedmisconduct?

9. Whoshouldbepunishedandwhy?Doyouthinkpunishmentisthebestaction?

10. Isthereanydefectintheworkingofthesystem?

10.5 Summary

Industrialrelationsorlabourrelationsaretheoutcomeoftheemploymentrelationshipinzz

anindustrialunit. Itunderscorestheimportanceofcompromiseandaccommodationinplaceofconflictandcontroversyinresolvingdisputesbetweenlabourandmanagement.

Thebasicobjectiveofindustrialrelationsistomaintainsoundrelationsbetweenemployerszz

andemployees.

Collectivebargainingistheprocessbywhichrepresentativesofmanagementandworkerszz

negotiateoverwages,hoursandothertermsandconditionsofemployment.

Theobjectiveofcollectivebargainingistoagreeuponanacceptablecontract,voluntarilyzz

throughnegotiations.Traditionally,collectivebargainingbetweenlabourandmanagementhasbeenadversarial.Presently,negotiationsarecarriedoutinnon-adversarialway,inanatmosphereofmutualtrustandfaith.

Therearefivedifferentapproachestostudyindustrialrelations,namely,thepsychologicalzz

approach,thesociologicalapproach,thehumanrelationsapproach,Giri’sapproachandthe Gandhian approach.

Atradeunionisaformalassociationofworkers,actingcollectively,whoseektoprotectzz

andpromotetheirmutualintereststhroughcollectiveaction.

Themainobjectiveofanytradeunionistoprotectandpromotetheinterestsofitsmembers.zz

Unionsperformcertainsocial,politicalandfraternalfunctionsaswell.

Industrialconflictsconstitutemilitantandorganisedprotestsagainstexistingtermsandzz

conditionsofemployment.Theyoccurinseveralformssuchasstrikes,lock-outs,gheraos,picketing,boycottetc.

Industrial disputes arise due to several causes relating to recognition, retrenchment,zz

employmentconditions,indiscipline,wagesandallowances,bonus,ill-treatmentetc.


Notes


10.6 Keywords

Closure: In case of closure the employer not only shuts down the place of business but alsosuspends all the transactions of his business.

Collective Bargaining: Aprocedurebywhichthetermsandconditionsofemploymentofworkersaregovernedbyagreementsbetweentheirbargainingagentsandemployers.

Employers’ Association: Itisaformalgroupofemployerssetuptodefend,representandadviseaffiliatedemployers.

Industrial Conflict: Organisedprotestagainstprevailingindustrialconditionsraisedbyagrouporaclassofworkers.

Industrial Dispute: Anydisputeordifferencebetweenemployersandemployers,orbetweenemployers and workmen or between workmen and workmen which is connected with theemploymentornon-employmentorthetermsofemploymentorwiththeconditionsoflabourofanyperson.

Industrial Relations: It generally refers to the collective relations between employers andemployeesasagroup.

Lock-out:Closingdownofanundertakingorthesuspensionofworkortherefusalofanemployertocontinuetoemployanynumberofpersonsemployedbyhim.

Negotiation: Aninterpersonalprocessusedbytwoormorepartieswherebybothorallmodifytheirdemandstoreachanagreement.

Strike: Acollectivestoppageofworkbyagroupofworkers.

Trade Union: Avoluntaryorganisationofworkersformedtopromoteandprotecttheirinterestsbycollectiveaction(V.V.Giri).


1. Whatmeasureswouldyousuggesttoimprovelabourrelationsinafirm?

2. Doyouthinktherightoftheworkerstostrikeisafundamentalright–asguaranteedintheConstitutionofIndia?WhyandWhynot?

3. Examinethecurrentstateoflabour-managementrelationsinIndia.Whatmeasureswouldyousuggesttomakethesemorecooperative?

4. Inthefaceoftechnological,competitive,politicalandsocialchanges,doyouvisualiseaconstructiverolefortradeunionsintheyearsahead?

5. Isunioninfluenceonthedecline?Ifyes,illustrateyourargumentswithexamplesfromthecorporate world.

6. Oncebargainingbegins,anemployerisobligedtonegotiateingoodfaithwiththeunion’srepresentativesover conditionsof employment.Doyou think this isbeingobserved inactualpracticeinIndia?Whyandwhynot?

7. Whyiscollectivebargainingconsideredasthebestwayofdeterminingemployer-employeerelations?

8. What is your opinion about the lock outs inmanufacturing firms? Are they the rightmannertoshowone’sangstandgetthedemand/sfulfilled?

9. WhatarethevarioustypesofStrikes?Whichonedoyoudiscountandwhy?

10. AsanHRmanger,doyouapproveofthepoliticalfunctionsofTradeUnions?Why/whynot?


Notes



1. False 2. True

3. False 4. False

5. False 6. False

7. True 8. False

9. False 10. True

11. True 12. False

13. Conciliation 14. Arbitration

15. Adjudication










Online links en.wikipedia.org/wiki/Industrial_relations

http://www.citehr.com/596-industrial-relation-india.html

http://www.ilo.org/public/english/dialogue/actemp/downloads/publications/srseleme.pdf

http://www.xlri.ac.in/scripts/pmoverview.php

Unit 11: Employee Grievance and Discipline

Notes



CONTENTS

Objectives

Introduction

11.1 Characteristics of Grievances

11.2 Nature and Causes of Grievances

11.3 Pre-requisitesofGrievanceProcedure

11.4 GrievanceManagement

11.5 Model Grievance Procedure

11.6 Discipline

11.7 DisciplinaryAction/Procedure

11.8 TypesofPunishments

11.9 EmployeeEmpowerment

11.10 Summary

11.11 Keywords



Objectives


Definethetermgrievancemanagementzz

Discussthediscipline&disciplinaryactionzz

Statetherelevanceofemployeeempowermentzz

Introduction

Agrievanceisasignofemployee’sdiscontentwithjobanditsnature.Itiscausedbythedifferencebetweenemployeeexpectationandmanagementpractice.

Beachdefines,“anydissatisfactionorfeelingofinjusticeinconnectionwithone’semploymentsituationthatisbroughttothemanagement.”

Juciusdefines,“anydiscontentordissatisfaction,whetherexposedornot,whethervalidornot,arisingoutofanythingconnectedwiththecompanywhichanemployeethinks,believesorevenfeelstobeunfair,unjustorinequitable.”

11.1 Characteristics of Grievances

1. Factual: Whentheemployeejoinstheorganisation,heexpectstheorganisationtofulfillhisneeds,aspiration,expectation.Whenthesearenotfulfilledtheemployeeisdissatisfiedwiththejob.Suchdissatisfactioniscalledfactualgrievance.Thesegrievancesreflectthedrawbackintheimplementationoftheorganisationpolicies.


Notes


2. Imaginary: When the job contract is not clear-cut and does not indicate the normsdefiningthelimitwithinwhichtheemployeeexpectstheorganisationtofulfilhisneedsoraspirations,theemployeedevelopssuchneedswhichtheorganisationisnotobligedtomeet.Herethegrievanceisnotonlybasedonfacts,wrongperceptionoftheemployee,butalsoonwronginformation.

3. Disguised:Psychologicalneedsoftheemployeessuchasneedforrecognition,affection,power,achievementetc.arenormallyunattendedandignored.Forinstance,theemployeecomplaining about the working conditions in the office may in turn be seeking somerecognitionandappreciationfromhisorhercolleagues.Hence,itshouldalsobeconsideredsincetheydohavefar-reachingconsequencesincasetheyareunattendedandignored.

11.2 Nature and Causes of Grievances

If aproblem is related toandendorsedbyallormajorityof employeesor if the tradeunionsubmitsaproblemasageneralclaim,itfallsoutsidethescopeofgrievanceprocedureandfallsunderthepurviewofcollectivebargaining.Thus,anissueiswiderinscopeorgeneralinnature,itwillbeoutsidethegrievancemachinery.Forexample,ifmajorityofemployeesorthetradeunioninanorganisationdemandwagerevision,suchissuesfalloutsidethescopeofgrievanceprocedureandfallsunderthepurviewofcollectivebargaining.Incontrast,ifworkersofdifferentdepartments submit to themanagement that theirwage isnot inaccordancewith theawardgivenbyWageBoardandiftheyaskthemanagementtocorrectthewageinequity,theyfallinthescopeofgrievancemachinery.

TheNationalCommissiononLabourstatesthat“complaintsaffectingoneormoreindividualworkersinrespectoftheirwagepayments,overtime,leave,transfer,promotion,seniority,workassignment anddischargewould constitutegrievance.Other causesmaybe interpretationofareaslikeplacement,transfer,promotion,workingconditions,paymentsofwages,allowances,overtimepay,medicalbenefits,housingfacilities,increments,grantingloans,conditionofwork,leave,seniority,safetymeasures,fines,conditionsofwork,suspension,breakinservice.

11.3 Pre-requisites of Grievance Procedure

1. Conformity with prevailing legislation:While designing the grievance procedure, dueconsiderationmustbegiventotheexistingstatutoryprovision.

2. Clarity: Anaggrievedemployeemustbeinformedaboutthepersontowhomapresentationcanbemade.Similarly,theredressingauthorityshouldbeveryclearaboutwhatisexpectedofhim,whatmeasuresbetaken,thelimitwithinwhichheshouldresorttoanaction.

3. Simplicity: Theproceduremustbesimpleandeveryemployeemustunderstanddifferentstagesoftheprocedure,theformstobefilled,witnessrequiredetc.

4. Promptness: Since justice delayed is justice denied, the procedure should aim at rapiddisposal of the grievance.

5. Follow up: Thedepartmentshouldperiodicallyreviewtheprocedureandintroducetheessentialstructuralchangesmakingitmoreeffective.

Notes The Open Door Policy

Thedevelopmentofsensitivefeelerswithintheorganisationfortappingisthesourceofdissatisfaction. The upward channels of communication should be free from blocks ofhindrance.Inmanyorganizations,anendeavourismadeforsuppressingthegrievance

Contd…


Notes


andtheindividualispreventedfrom‘speakingout’.Toovercomethebarriersofupwardcommunication,someexpertshavesuggestedthe‘Opendoorpolicy’whichrequireseffortandwillingnessfromtheindividual’ssuperior.Thereshouldbeageneralinvitationtoallemployees,towalk-inatanytimeandspeakovertheirgrievances.Thispolicyisworkableonlyinsmallorganisations.Inlargeorganisations,thetopmanagementhasneithertimetolookaftertheinnumerablegrievancesnorfamiliaritywiththeirworksituation.

11.4 Grievance Management

At present, there are three legislations dealingwith grievance of employees working in theorganization:

1. TheIndustrialEmployment(StandingOrders)Acts,1946,requiresthateveryorganisationemploying100ormoreworkersshouldframestandingorders.Theycontainaprovisionforredressalofgrievanceofworkersagainstunfairtreatmentbyemployerorhisagents.

2. TheFactoriesAct,1948providesfortheappointmentofawelfareOfficerineveryfactoryemploying500ormoreworkers.TheWelfareOfficerslookaftercomplaintsandgrievanceofworkers.Theyalsolookafterproperimplementationoflabourlegislation.

3. TheIndustrialDisputesAct,1947amendedin1965looksafterissuesrelatedtodischarge,dismissalorretrenchment.

11.5 Model Grievance Procedure

InIndia,thereisaModelGrievanceProcedure,whichwasadoptedbyIndianLabourConferenceinits16thsessionheldin1958.Atpresent,IndianindustriesareadoptingtheModelGrievanceProcedureorprocedureformulatedbythemselveswithmodifications. Inotherwords,ModelGrievanceProcedureisvoluntaryintheIndianIndustries.

DEPARTMENTAL REPRESENTATIVE

DEPARTMENTAL REPRESENTATIVE

VOLUNTARY ARBITRATION

COMMITTEE OF UNION & MGMT. REPRESENTATIVE

MANAGER

GRIEVANCE COMMITTEE

HEAD OF THE DEPARTMENT

SUPERVISOR

FOREMAN

GRIEVANT EMPLOYEE

Figure 11.1: Model Grievance Procedure


Notes


11.6 Discipline

Meaning and Definitions

Disciplinereferstoaconditionorattitudeprevailingamongtheemployeeswithrespecttorulesandregulationofanorganization,orderlinesstheoppositeofconfusion.

Disciplineisdefinedas–Aforcethatpromptsindividualorgroupstoobservetherules,regulationandprocedureswhicharedeemedtobenecessaryfortheeffectivefunctioningofanorganization.

Did u know? The Red Hot Stove Rule

McGregorcoinedtheterm“red-hotstoverules”,whichdrawsananalogybetweentouchinga hot stove and undergoing discipline.

Thedisciplinaryprocedureshouldstartimmediatelyafteracommissionisnoticed.Itshouldgiveaclearcutwarningregardingtheextentorpunishmentsforanoffence.Thesamepunishmentsshould be consistently given for the same type of offence irrespective of status differentpunishmentsshouldbeimposedi.e.,itshouldbeimpersonal.

Task “Youcan’tdisciplineemployeestodaythewayyoucouldagenerationago”.Doyouagreeordisagree?Discuss.

11.7 Disciplinary Action/Procedure

1. Issuing a letter of charge to the employee calling upon him for explanation:When themanagement of the establishments comes to the conclusion that an act of misconductcommitteebyanemployeewarrantsdisciplinaryaction,theconcernedemployeeissuesachargesheet.Thechargesheetshouldindicatethechargesofindisciplineormisconductclearlyandprecisely.

2. Consideration of the explanation:Whenthedelinquentemployeeadmitsinanunqualifiedmannerabouthismisconduct,thereisnoneedforconductinganyenquiryfurther.

3. Show cause notice:Intheshowcausenotice,theemployerprovidesanotherchancetotheemployeetoexplainhisconductandrebutthechargesmadeagainsthim.

4. Holding of full-fledged enquiry:Theenquiryshouldbeinconformitywiththeprincipleofnaturaljusticethatis,thedelinquentemployeemustbegivenareasonableopportunityofbeginheard.Hemayalsosuggestthenatureofdisciplinaryactiontobetaken.

5. Considering the enquiry proceedings and findings and making final order punishment: Whenthemisconductofanemployeeisproved,themanagermaytakedisciplinaryactionagainsthim.Incasetheemployeefeelstheenquiryisnotproperandactionunjustified,hemustbegivenachancetomakeanappeal.

6. Follow Up: After taking disciplinary action, there should be proper follow up. Thedisciplinaryactionshouldnotmaketheemployeereporthismistake.

11.8 Types of Punishments

1. Oral Warning: Wheneveranemployeecommits intromissions,hemaybegivenanoralreprimandbythesuperiorconcerned.


Notes


2. Written Warning:Writtenwarnings are also referred to as “pink slips’which indicatethatcertainrightwouldbewithdrawnincasetheemployeecontinueshiscommotionormisconduct.

3. Loss of Privileges and Fines: Ifthecontractofemploymentsprovidesforimpositionforfinebytheemployeronthedelinquentemployee,theemployermayresorttothem.

4. Punitive Suspension: Underpunitive suspension, the employer prohibits the employeefromperformingthetaskassignedtohimandthewagesarewithdrawnduringtheperiodof such prohibition.

5. Withholding of Increments: Under this method, the employer withhold the annualincrementsofthedelinquentemployeeinagradedscale.

6. Demotion:Underthistypeofpunishment,anemployeeisreducedtoalowergradefromthegradeenjoyedbyhisearlier.Normally,thismethodisresortedtowhenanemployeeispromotedbymistakeandheisnotabletoperformthejob.

7. Termination/Discharge and Dismissal:When theconductofanemployee isdeemed tobe incompatiblewith the faithfuldischargeofhisdutiesandundesirableoragainst theinterestsoftheemployertocontinuehiminemployment,dismissalwillbejustified.Thisisanextremekindofpunishment.Butincaseofdischarge,anemployerterminatestheemploymentofdelinquentemployeeeitherbygivingagreedadvancenoticeorbypayingmoney in lieuof suchnotice. Inotherwords, indischarge, the reciprocalpromisesandobligations are stated to be discharged.

!Caution Terminationoftheserviceofanemployeemaynotbeonaccountofhismisconduct,butmaybeforcertainotherreasonsthatdonotcastasluronhim.Thisisreferredtoasdischargesimpliciter.

Self Assessment


1. Cooperation is essential in avoiding grievances.

2. Managementoftentriestostallgrievances.

3. Managementshouldalwaysshowsincereconcernfortheproblemsofemployees.

4. Theopendoorpolicyisanoldstandbyforsolvingemployeecomplaints.

5. Punishmentshouldbetheintentofdisciplinaryaction.

6. Dismissalisthemostaccepteddisciplinarystepthatmanagementcantakeagainstadefiantemployee.

7. When employees fail to conform to organisational rules and regulations, the finaldisciplinaryactioninmanycasesisdischarge.

8. Grievances impactnotonly theemployeesandmanagersbutalso theorganisationasawhole.

9. Discipline is the act of offering rewards for wrong behaviours.

10. Misconduct in the observance of established rules and procedures.

11. Managementhastotreatallcasesofindisciplineinafairandequitablemanner.

12. Nomanshouldbeheldguiltywithoutgettinganopportunitytoexplainhispointofview.


Notes


13. Lockoutisthepermanentclosureofaunit.

14. Administeringdisciplinecanbeviewedasanalogoustotouchingahotstove.

15. Penalties should be connected with a given violation, not with the personality of theviolator.

11.9 Employee Empowerment

StephenRCovey,5theauthorof“The Seven Habits of Highly Effective People” writesin“Principle-Centered Leadership”— “Management must empower its people in the deepest sense andremovethebarriersandobstaclesithascreatedthatcrushanddefeattheinherentcommitment,creativity andquality service thatpeople areotherwiseprepared tooffer.To receive joyandprideinone’sworkistherightofall.Anditismanagementpracticesthatpreventit.Toachievetotalquality,managersmustbecomeleaders,drawingfromtheirpeopletheirgreatestcapacitytocontributeideas,creativity,innovativethinking,attentiontodetailandanalysisofprocessandproducttotheworkplace.Inotherwords,managementmustbecomeempoweringleaders”.

Theway you define empowerment depends on a number of factors. If you are following acompanypolicyofempowermentinitiativethenitislikelythatmanyoftheparameterswillbesketchedout.Youmayinheritadefinition.Ifyouarestartingfromscratchthenyouarefreetodevelopyourowndefinition.However,whateverboatyouarein,itisimportanttogetaworkingdefinitionclearinyourmind.

The whole focus of empowerment is that it should improve the service you offer to yourcustomersthroughtheincreasedperformanceofyourteam—bothindividuallyandasawhole.Itisimportantheretobeclearthatempowermentisnotthesameasdelegation.Delegationmeansthatyoudecidewhatpeopleshouldtakeon.Empowermentmeanstheytakeresponsibilityfordecisionsandtheirwork.Empowermentisnottellingpeopletobuytheteabagsfromthelocalcorner shop.

Thenextstepistomakealistofsomeofthebigissuesthatempowermentislikelytohighlightsothatyouwillbepreparedforthem.Thisisimportantbecauseempowermentisdynamicanddoes lead to change.

More Personal Preparation: Theissueyouneedtobeclearaboutisyourownattitudetowardsyourownpower.Empowermentmaymeangivingupsomeofthethingsyoulikeandexchangingyourpresentjobforaslightlydifferentone.Youneedtobecomfortablewiththeimplicationsofthis.Theempoweredmanagermaynolongerbeakindofbenigndictator.Youmayneedtoswapthisroleandinsteadbecomemoreofanempowerer/facilitator,helpingyourstafftoachieve.

Be Clear About Your Starting Point: Akeythingistogetaclearideainyourmindofwhereyourorganizationorteamisatthemoment.It’sverydifficulttostartempoweringpeopleunlessyouknowwhereyouarecomingfrom.Therearedifferentwaysoflookingatorganizations,butthekeyphrasehereis‘organizationalculture’.Putsimply,anorganizationalculturemeans‘thewaywedothingsaroundhere’.Ifyourorganizationisveryhierarchicalandresistanttochange,youarelikelytohaveamuchtougherjobofempoweringthanifyourorganizationisalreadyopen,communicatesfreely,andallowspeopletoexpressthemselvesandfulfiltheirpotential.

Self Assessment

Fillintheblanks:

16. Whentheemployeejoinstheorganisation,heexpectstheorganisationtofulfillhisneeds,aspiration,expectation.Whenthesearenotfulfilledtheemployeeisdissatisfiedwiththejob.Suchdissatisfactioniscalled………………grievance.


Notes


17. Whenthejobcontractisnotclear-cutanddoesnotindicatethenormsdefiningthelimitwithinwhichtheemployeeexpectstheorganisationtofulfilhisneedsoraspirations,thegrievanceisnotonlybasedonfacts,wrongperceptionoftheemployee,butalsoonwronginformation.Thisiscalled………………grievance

18. ………………meansthatyoudecidewhatpeopleshouldtakeon.

19. ………………meanstheytakeresponsibilityfordecisionsandtheirwork.

20. Under………………suspension,theemployerprohibitstheemployeefromperformingthetaskassignedtohimandthewagesarewithdrawnduringtheperiodofsuchprohibition.

Task Visit thewebsitehttp/www.employer-employee.com/comm101.htmWhereyouwillfindcurrentarticlesaboutvariouscommunication topics.Reada fewof themandsee whether you can develop some insights into the topics discussed in the unit andspecificallythesequestions:

1. Howisadvancedinformationtechnologyaffectinginterpersonalcommunicationinorganisation?

2. Supposeyouareemployedinanentry-levelmanagementpositioninalargeBank.Whatspecificconsiderationswouldyouidentifyforsendingane-mailversustalkinginpersontosomeoneelseintheBank?

3. Fromyourreading,whatadvicewouldyougivetothetrainingdepartmenttohelpimprovecommunicationeffectivenessofthosebeingtrainedfortheassignmentoverseas?

Case Study Positive Discipline

Ramdeo,aworkmanintheFireandSafetyDepartmentofamanufacturingunitofafactoryisaddictedtoalcohol.Hehasbeenwarnedmanytimesforcomingondutyinaninebriatedstate.Hehasbeenservedcharge-sheetandawardedpunishment.

Stilltherewasnoimprovementinhischronicabsenteeism.Heisalsodeeplyindebtandhardlytakesacoupleofhundredrupeesashistakehomesalary.Insteadofresortingtoprogressivepunishment, themanagement,with thehelpof a socialworker, counselledhimandalsomadehousevisitsandcontactedhisfamilymembers.Finally,hewassenttoahospitalwhichspecialisedinde-addiction.Histhreemonthsoftreatmentinthehospitalwasconsideredasspecialleavewithwageswhichwerepaidtothefamilymembers.Thecompanyboretheentirehospitalexpenses.Afterdischargefromhospital,Ramdeoresumedhiswork.Therearenomorecomplaintsabouthim.Hisperformanceissatisfactory.Duringherregularvisits,thesocialworkerreceivedsatisfactoryreportsaboutRamdeofromhisfamilymembers.Infacttheyweregratefultothecompanyforsavingtheirfamilyfromcertain destitution.

Questions

1. In these fast-paced times, is it possible for anymanagement to stretch that far toreformaperson?

2. Isitobligatoryonthepartofthemanagementtotakecareofaworkmanbeyondhisworkinghours?

3. Whatdidthemanagementachievebythisaction?


Notes


11.10 Summary

Agrievancereferstoanyformofdiscontentofdissatisfaction,arisingoutofemployment,zz

regarding certain organisational issues.

Agrievancemanybefactual,imaginaryordisguised.zz

If grievances are not identified and redressed properly, theymay adversely affect thezz

workers,managersandtheorganisation.

Grievancesmaybeuncoveredthroughobservation,gripeboxes,anopendoorpolicy,exitzz

interviewsandopinionsurveys.

‘Discipline’referstoaprocedurethatcorrectsorpunishesasubordinatebecausearuleorzz

procedure has been violated.

Thecommoncausesofindisciplineareabsenceofeffectiveleadership,unfairmanagementzz

practices,communicationbarriers,divideandrulepolicies,victimisationetc.

Mostorganisationstodayusetwoimportantconcepts inmetingoutdisciplinaryaction:zz

progressive discipline and positive discipline.

Inaprogressivedisciplinesystem,theemployeeisgivenamplewarningofperformancezz

orotherwork-relatedproblems.Failuretochangehisorherbehaviourisaccompaniedbyincreasinglyharsherdisciplinaryaction.

Because of legal concerns, managers must understand discipline and know how tozz

administeritequitably.

General guidelines in administering discipline include making disciplinary actionszz

corrective,makingdisciplinaryactionsprogressive,andfollowingthehot-stoverule–beimmediate,provideamplewarning,beconsistent,andbeimpersonal.

Empowermentimpliesgrantingemployeespowertoinitiatechange,therebyencouragingzz

themtotakechargeofwhattheydo.

Empowermentallowsemployees to take the initiative, tryoutnewideas,useresourceszz

freely,andworktowardpredeterminedgoalsindependently.

11.11 Keywords

Demotion:Underthistypeofpunishment,anemployeeisreducedtoalowergradefromthegradeenjoyedbyhisearlier.

Discipline:Inarestrictedsense,itistheactofimposingpenaltiesforwrongbehaviour;broadlyspeaking,itisorderliness,conformancetoestablishedrulesandcodesofconduct.

Dismissal:TerminationfromemploymentforanyofthemisconductsmentionedintheIndustrialEmployment(Standingorders)Act,1946.

Empowerment: Allowingemployeesmorecontroloverwhattheydoonthejob.

Grievance:Anydiscontentordissatisfaction,whetherexpressedornot,whethervalidornot,arisingoutofanythingconnectedwiththecompanywhichemployeethinks,believesorevenfeels to be unfair.

Misconduct:Violationofestablishedrulesandnormsofbehaviour(bothformalandinformal).

Red-hot Stove Rule:Thetheorythatdisciplineshouldbeimmediate,consistent,andimpersonal,and should include a warning.


Notes


Standing Orders:ServicerulesandotheragreedtermsofemploymentcertifiedbyanauthorityaspertheprovisionsoftheIndustrialEmployment(Standingorders)Act,1946.

Suspension or Layoff: A situation in which the employees are temporarily taken off work,beingtoldthereisnoworkforthembutthatmanagementintendstorecallthemwhenworkisavailable.(Applicableonlytolay-off;insuspension,theemployeeisnotallowedtoworkuntildepartmentalenquiry leadstofurthercourseofaction,spanningarangeofpossibilities fromreinstatementtodismissal.)

Termination Interview:Theinterviewinwhichanemployeeisinformedofthefactthatheorshehasbeendismissed.


1. Definetheterm‘grievance’.

2. Howwouldyoutrytouncovergrievances?

3. Whatismeantbydiscipline?Whyitisneeded?

4. Bring out the differences between positive and negative discipline.

5. DiscussthemodelgrievanceprocedurethatisapplicableinIndia.Whataretheessentialpre-requisitesofagrievanceprocedure?

6. Outlinethevariousformsofindisciplineandexaminethefactorsleadingtodiscipline.

7. ExplainwhatyoumeanbythePrinciplesofNaturalJustice.Describehowtheprocessofdomesticenquiryfulfilsthoseprinciples.

8. Writenoteson:(a)Suspension(b)Dismissal

9. DiscusstheimportanceofRedhotstoverule.

10. Whyhasthepositiveapproachtodisciplinebeenusefulinreducingemployeelawsuits?

11. Explainwhydocumentationissoimportantinthedisciplinaryprocess.Whatconstitutescorrectdocumentation?


1. True 2. False

3. True 4. True

5. False 6. False

7. True 8. True

9. False 10. False

11. True 12. True

13. False 14. True

15. True 16. Factual

17. Imaginary 18. Delegation

19. Empowerment 20. punitive


Notes











Online links http://www.cipd.co.uk/hr-topics/discipline-grievances.aspx

http://www.kevinmorrell.org.uk/Discipline%20and%20Grievance.pdf

www.businessdictionary.com/definition/grievance.html

http://www.answers.com/topic/grievance

http://www.legal-explanations.com/definitions/grievance.htm

Unit 12: Health & Safety Management

Notes



CONTENTS

Objectives

Introduction

12.1 Health

12.1.1 Legal Provisions Regarding Health

12.1.2 MeasurestoPromoteEmployeeHealth

12.1.3 EmployeeAssistanceProgrammes

12.2 EmployeeSafety

12.3 ManagementRoleinSafety

12.3.1 Role of Supervisors

12.3.2 EffectiveSafetyManagement

12.4 Causes of Accidents

12.5 Preventions of Accidents

12.5.1 Predict the Accident-prone

12.5.2 Preventive Measures

12.6 Summary

12.7 Keywords



Objectives


Definethetermsafetyzz

Discussthemanagement’sroleinsafetyzz

State the causes of accidentszz

Explainthepreventionmethodsofaccidentzz

Introduction

Ensuringasafeandhealthyworkenvironmentistheprimaryresponsibilityofeveryemployer.It shows their sensitivity to employeeneedsand rights.Accidentprevention is anadditionalbonus.Costs associatedwith sick leave, disability payments, replacement of employeeswhoareinjuredorkilledcouldbeavoided.Respectingthelawsofthelandandgoingastepforwardproactivelywouldgiveahealthyimageinthemarketplace.Througheffectivesafetyandhealthprogrammes,thephysicalandemotionalwellbeingofemployeesmaybepreservedandevenenhanced.However,inactualpractice,thereareseriousviolationsonthisfront.Thesafetylawsareviolatedgleefullyandprovisionsgoverningemployeehealthareignoredconveniently—withactivesupportandhelpfromlawenforcingauthorities.Notsurprisingly,thehealthandsafetyrecordinIndiaisverypoor.


Notes


Example: TheUnionCarbideaccidentinBhopal,killedover4,000peoplein1984(andmore than 25000 till date and another 1,20,000 suffering from hazards of various kinds) isconsideredbymostexpertstobetheresultofequipmentdesignflawswhichcouldhavebeenavoided.Union labourministry’s records place companies inMaharashtra,Andhra Pradesh,MadhyaPradesh,RajasthanandGujaratasthemostdangerousplacestowork,withthousandsoffatalandnon-fatalaccidentsreportingalmosteveryyear.

Did u know? The biggest offenders are generally from jute mills, cotton industry, leadbatterymanufactures,chemicalunits,textilemills,matchandfireworksindustryespeciallyinSivakasi,automotiveindustry,sugarcrushingunits,mining,heavyconstruction,flourmills,etc.

12.1 Health

Healthisastateofwellbeing.Itnotonlyincludesphysicalwellbeing,butalsoemotionalandmentalwellbeing

Almostalllargeorganisationsprovideamedicalunittoservicetheneedsofemployees.Theseunitsareavailabletodealwithillnessesorinjuriestoworkersonthejob.Additionally,theyoftenprovidephysicalexaminations fornewemployees;and theyworkcloselywith thosedirectlyresponsibleforsafetyintheorganisation,toadviseonpotentialwork-relatedhazards.

Thelargertheorganisation,thegreatertheprobabilitythatsuchfacilitieswillbeneeded.Thegreaterthejob-relatedhazards,thegreatertheneedforfacilities.Inadditiontotheprovisionofphysicalhealthprogrammes,increasingattentionisbeingdirectedtopsychologicalproblems.Twoofthemostwidespreadarealcoholismanddrugabuse.

Alcoholism

Alcoholism is one of the nation’s largest health problems.Alcoholics,when employed causereduction in employee productivity, increased absenteeism, more on-the-job accidents, andhigherhealthcarecosts.Alcoholicsaredistributedinproportiontoemploymentgroupsintheworkforce.Professional,managerial,andwhite-collaremployeesareaboutaslikelyasthoseinblue-collarandoperativejobstobealcoholics.Sotheproblemofalcoholismhasramificationsforall levels in the organisation.

Alcoholism follows growth stages. In the early development stage, symptoms are almostnon-existent. Corrective efforts of a preventive nature can be used at this point. In the second ordisruptivestage,symptomsbecomevisible,andearlydetectioncanpreventalcoholismfromdevelopingfurther.Thethirdstageisfullydevelopedalcoholism.Here,intensivetreatmentwillberequiredtocureaddiction.

Alcoholismisanillness,andemployeeswiththeproblemshouldbetreatedastheywouldbeforanyotherillness.Managementneedstoeducatesupervisorypersonneltodetecttheearlysignsofthediseaseandtrainthemtocounselemployees.Employeesalreadyinthesecondorthirdstagemayneedtobereferredtoarehabilitationprogramme.Theorganisationhasanobligationtobesupportiveofemployeesaslongastheyarecooperativeintryingtobeatalcoholism.Ifanemployeefailstoco-operate,thedisciplinaryprocessshouldbefollowed.Thisincludestheuseof suspensions or discharge.


Notes


Notes Drug Abuse

Alcoholismanddrugabusehavesomeimportantdifferences.First,alcoholcanbelegallyobtainedwhiledrugsarefrequentlyillegal.Drugabuse,therefore,maymeaninvolvementwith law enforcement agencies. Second, society ismore tolerant of alcohol abuse thandrugabuse.Alcoholismisaproblemthatismostwidespreadamongemployeesintheirfortiesandfifties,whiledrugabuseismostprevalentamongemployeesunderthirtyyearsofage.Finally,drugabuseismorelikelytobeaccompaniedbytheftthanisalcoholism,becauseusersneedtoraisemoneytobuydrugs.

Employers shouldpursuedrugabuseproblems in the samewayas theywould tacklealcoholism,withsomemodifications.First, careful selectioncan increase the likelihoodthatdrugabuserscanbedetectedandscreenedout.Second,detectionamongemployeeswillrequirecloserscrutinybecauseindividualsaremorelikelytohidetheirdrughabit.Supervisorsshouldbeparticularlyknowledgeableofdrugparaphernaliasothattheycanbeonthelookoutforit.Lastly,organisationsmaywanttoestablishmoreseveredisciplinefor thedrugabuser.Thiscanbe justifiedonillegalityofmanypopularlyabuseddrugssuchasmarijuana,heroin,andcocaine.

12.1.1 Legal Provisions Regarding Health

Indiahashadlegislationonoccupationalhealthandsafetyforover50years.IndiawasunderBritishruleinthe19thandtheearly20thcentury,hencetheprincipalhealthandsafetylawsarebasedontheBritishFactoriesAct.TheFactoriesAct,1948isamendedfromtimetotime,andespeciallyaftertheBhopalGasdisaster,whichcouldhavebeenprevented.Thisdemandedashiftfromdealingwithdisaster(ordisease)topreventitsoccurrence.TheFactories(Amendment)Actcame into forceon1December1987.TheFactoriesAct,1948, laysemphasison the followingpreventivemeasures(Sec.11to20)(Kumar,LabourLaws)

1. Cleanliness (11): Every factory shall bekept clean and free fromeffluvia.Dirtmust beremoved daily. Benches, staircases, passages and the floor of the workroom must becleaneddailysothatthereisnoaccumulationofdirt.Workroomfloorsmustbewashedatleastonceaweek,withsomedisinfectingfluid.Walls,partitions,ceilings,doors,windows,etc.,bepainted,varnishedperiodically.

2. Wastes (12):Theremustbeeffectivearrangementsforthedisposaland/ortreatmentofwasteandeffluents.

3. Ventilation and temperature (13):Everyworkroominthefactorymusthavepropernaturalventilation,permittingcirculationof freshair.Theroomtemperatureshouldbekeptata level comfortable toworkers. Thewalls and roofs should be of suchmaterial andofsuchdesignsoastokeepthetemperaturelow.Hightemperaturemaybecontrolledbywhitewashing,sprayingandinsulatingthefactorypremisesbyscreeningoutsidewalls,windows and roofs.

4. Dust and fumes (14): Effective arrangements must be made to prevent or reduce theinhalationandaccumulationofdustandfumes.Exhaustappliancesshouldbeemployedneartheplaceoforiginofdustandfumes.

5. Artificial humidification (15): Incotton textileandcigarettemanufacturingunitswhereartificialhumidificationisused,StateGovernmentrulesshouldbefollowed.Waterusedforartificialhumidificationmustbeproperlypurified.


Notes


6. Overcrowding (16):Noroomin the factoryshouldbeovercrowded.Thereshouldbeatleast14.2cubicmetersofspaceforeveryworkman.

7. Lighting (17):Thefactorymusthavesufficientandsuitablelightingarrangements–bothnaturalandartificialglazedwindowsandskylightsusedto light theworkroomshouldbekeptclean.Provisionsshouldbemadeforthepreventionofglareandtheformationofshadowsintheworkspot.

8. Drinking water (18): The factorymust providewholesome drinkingwater at suitable,convenient points. All such points are marked ‘drinking water’ clearly in a languageunderstoodbymajorityofworkers.Everysuchpointshouldbeaway(notwithin6metersrange)fromurinals,latrine,spittoons,opendrains,etc.Wherethefactoryemploysmorethan250employees,suitablearrangementsmustbemadetoprovidecooldrinkingwaterduringthehotsummermonths.

9. Latrines and urinals (19):Thelatrinesandurinalsare(a)maintainedseparatelyformaleand femaleworkers, (b)having sufficient enclosed space, (c) conveniently situatedandaccessible to allworkmen, (d) adequately lighted andventilated, (e) cleanly kept at alltimes,(f)maintainedproperlybyemployingsweepersforthispurpose.

10. Spittoons (20):Asufficientnumberofspittoonsshouldbeprovidedatconvenientplacesineveryfactoryandtheseshouldbemaintainedinacleanandhygieniccondition.

12.1.2 Measures to Promote Employee Health

Healthpromotionat theworkplacemaybebroadlydefinedasanyeffort topreventdiseaseorprematuredeaththroughbehaviouralandorganisationalchange.Healthpromotionfocusesonpreventionratherthantreatmentorcure.Thereforethehealthprogrammeatthecompanyisplannedaround improvementandpreventionof controllable risk factors suchas smoking,obesity,highlevelofcholesterol,stress,hypertensionandlowlevelofphysicalfitness,whichareresponsibleformostmajordiseases.Promotinghealthconsciousnessisnotaneasytask.Itrequirescontinuouseducation,systematiccampaignandgenuinesupportfromtopmanagement.Beforethe companystartsplanning for theprogramme, itmust investigate theneedsand resourcesofboththeemployeesandtheorganisation.Theplanningprogramme,basically,involvesfivesteps:settinggoals,developingtheplan,allocationofresources,implementationandevaluationoftheplan.Thecorehealthpromotionactivitiesmaycoversuchareasas:

(i) Healthyliving

(ii) Eatingwisely

(iii) ExerciseandPhysicalfitness

(iv) Smokingcessation

(v) Stressmanagement

(vi) Protectingoneselffromworkplacehazards.

!Caution The initial effort and investment required to institute such health promotionprogrammesmayprove to be quite heavy but the long run rewards are quite fruitful:improvements in employees health result in better work attitudes, higher morale, jobsatisfaction,reducedabsenteeismandturnover.

Companies,ofcourse,haverealizedtheimportanceofinvestinginwellnessprogrammesinrecenttimes.FastfoodchainssuchasMcDonald’sandArby’sgotoanylengthtoeliminatesmokingintheirrestaurants.CompaniessuchasUnionPacificCorporationgototheextentofrejecting


Notes


employmentapplicationsfromsmokers.Weyco,amedicalbenefitsadministrator,decidedthatitwouldbeano-smokingemployer.ThepresidentofthecompanyHowardWeyersisnowinhis70syetworksoutregularlyandcansquat-press340pounds!Weyerssaidthatbecauseemployeelifestylechoicesaffectthebottomline,hiscompanywillnotemploypeoplewhosmoke,evenontheirowntime.TheGovernmentofIndia,takingnoteofthehealhazardsarisingoutofsmoking,hasbannedsmoking inpublicplaces.Smoke-freeworkplacesarerapidlybecomingthenormeveninIndia.Alreadythereexistsaprohibitionagainstsmokinginauditoriums,gymnasiums,restrooms,cafeterias,breakrooms,elevators,hallwaysandothercommonareasinmostoffices.Smokinghasbecomeanintercontinentalnuisanceandhencemostcountries—bannedinCanada,Cuba,USA,Indonesia,Ireland,Italy,Australia,EuropeanUniontonameafewwhichhaveputabanonsmoking inone formor theother—have imposedrestrictionsonsmoking inpublicplaces. (Mejia)

Company sponsored wellness programmes have gained popularity in recent times. MostcompaniesintheIT,Electronics,Telecommunications,FMCGsectorshavecometorealizethatwellness programmes are nothing but inexpensive insurance covers for their employees andhencedonothesitatespendinglavishlyonprofessionalhealthscreeningandmultimilliondollarfitnessfacilitiesintheircampuses.

12.1.3 Employee Assistance Programmes

Onemethodthatcompaniesareusingasabroad-basedresponsetohealthissuesistheemployeeassistance programme (EAP) which offers counselling and other help to employees havingemotional,physicalorotherpersonalproblems.Insuchaprogramme,thecompanyestablishesa liaisonwith a social service counselling agency. Employeeswho have problemsmay thencontacttheagencyeithervoluntarilyorbyemployerreferral–seekingemotionalsupportandevenphysicalhelp.Thecounsellingexpensesareoftenpaidbytheemployereitherfullyoruptoprescribedlimit.EAPsgenerallycoverthefollowingareas(seeHopkins;Wirt;Isaac)

Personnel Crises and Workplace Violence:Themostprevalentproblemsamongemployeesarepersonalcrisesinvolvingmaterial,family,financialorlegalmatters.Unabletobeartheemotionalstresscausedbysuchunresolvedissues,mostemployeesmayturnviolent,beatupcolleagues(or even supervisors) and destroy company property. Careful pre-employment screening,proper conflict resolution programmes, anonymous reporting by colleagues spotting suchviolentbehaviours,increasedsecurityprovisionsincludinganemergencyalarmwouldhelpinmanagingworkplaceviolenceinabetterway.Asupervisorisinthebestpositiontohandlesuchchargedcircumstancesthroughsympatheticlistening.Inmostcases,hecanextendthebesthelpbybeingunderstandingandsupportiveandbyhelpingtheviolentemployeefindthetypeofassistance he or she needs.

Whenconfrontedbyanangry,potentiallyexplosiveemployee,thesupervisorwoulddowelltotakenoteofthefollowingsuggestionsadvancedbyoneexpert:(i)makeeyecontact,(ii)stopwhatyouaredoingandgivefullattention,(iii)speakinacalmvoiceandcreatearelaxedenvironment,(iv)beopenandhonest,(v)letthepersonhavehisorherway,(vi)findoutwhatthepersonisupsetabout,seekingspecificexamples,(vii)becarefultodefinetheproblem,(viii)exploreallsidesoftheissue,(ix)listensympathetically,patientlyshowinglotofsupportandunderstandingallthetime.

12.2 Employee Safety

SafetyreferstotheactofprotectingthephysicalwellbeingofanemployeeItmeansprotectingemployeesfrominjuriescausedbyworkrelatedaccidents.

LegalProvisionsRegardingSafety(Sec.24to40)


Notes


TheFactoriesAct,1948,putsemphasisonthefollowingsafetyprovisions:

1. Fencing of machinery (21):Ineveryfactorythedangerouspartsofanymachinesshallbesecurelyfenced.

2. Work on or near machinery in motion (22):Forexaminingandlubricatingmachineswhileinmotion,speciallytrainedworkerswearingtightclothesbesent.Suchaworkershouldnotbeallowedtohandlebeltsofmachinesinmotionwithoutproperprecautions.Womenandyoungchildrenshouldbeprohibitedfromhandlingsuchdangerousmachines.

3. Employment of young persons (23):Noyoungpersonbeallowedtoworkondangerousmachines unless he is fully instructed about possible dangers and precautions to befollowed.Sufficienttrainingbeprovidedinadvanceandheshouldbeallowedtooperatesuchmachinesundertheguidanceofanexperiencedsupervisor.

4. Striking gear and devices for cutting off power (24):Ineveryfactorysuitablestrikinggearhastobeusedtomovedrivingbelts.Stepsshouldbetakentoensurepreventionofthebeltfromcreepingbackontothefastpulleys.Drivingbelts,whennotinuse,shallnotbeallowedtorestorrideonashaftinmotion.Suitabledevicesforcuttingoffpowerinanemergency shallbemaintained in every room.Whenadevicewhich can inadvertentlyshiftfrom‘off’to‘on’positionisprovidedinafactorytocutoffpower,arrangementsshallbemadetolockitinasafepositionwithaviewtopreventtheaccidentalstartingofthetransmissionmachineryoranyothermachinestowhichthedeviceisfitted.

5. Self acting machines (25):Notraversingpartofaselfactingmachineinanyfactoryandnomaterialcarriedthereonshallbeallowedtorunonitsoutwardorinwardtraversewithinadistanceof18inchesfromanyfixedstructurewhichisnotapartofthemachine,ifapersonis liable to pass through the space over which it operates.

6. Casing of new machinery (26):Allmachinery,drivenbypowerandinstalledafter1-4-1949,mustbeencasedorotherwiseeffectivelyguardedtoeliminatedangertothoseworkinginthefactory.

7. Employment of women, children near cotton openers (27):Nowomanorchildbeemployedinanypartofafactorytopresscottonwhenacottonopenerisworking.Butifthefeed-endofacottonopenerisinaroomwhichisseparatedfromthedelivery-endbypartitionextending to theroofor tosuchheightas the factory inspectormayexpress inwriting,womenand childrenmaybe employed in thatpart of the roomwhere the feed-end iskept.

8. Hoists and lifts (28): In every factory hoists and lifts shall be of a good mechanicalconstruction, soundmaterial andadequate strengthand shallbeproperlyprotectedbyenclosuresfittedwithgates.Onceineverysixmonths,itshallbethoroughlyexaminedbyacompetentperson.Themaximumsafeworkingloadshallbeclearlyindicatedoneveryhoist or lift. A heavier load shall not be allowed to be carried on that hoist or lift.

9. Lifting machines, chains and ropes (29):The liftingmachines, tackles, chainsandropesusedineveryfactoryshouldbeofgoodconstruction,soundmaterialandstrongenoughtocarrythenecessaryloads.

10. Revolving machinery (30): In every roomwhere grinding jobs are performed, a noticeshowingthemaximumworkingspeedofthemachineshallbefixednearit.Safeworkingperipheralspeedofeveryrevolvingvessel,pulley,basket,flywheel,dischastobeobservedandstepsshouldbetakentoseethatthesafeworkingspeedisnotexceeded.

11. Pressure plant (31): If inany factoryoperationsare carriedoutat apressureabove theatmosphericpressure,propermeasuresshallbetakentoseethatthesafeworkingpressureis not exceeded.


Notes


12. Floors, stairs and means of access (32):Alldoors, steps,stairs,passagesandgangwaysshallbeofsoundconstructionandmaintainedinastateofgoodrepair;theyshallbefreefromobstructionslikelytocausepersonstoslipandhandrailsshallbeprovidedwhereverrequired.Asfaraspossible,safemeansofaccesstotheplaceofworkshallbeprovidedandmaintained.

13. Pits, sumps, openings in floors (33):Everypit, tank, sump,fixedvessel,opening in thegroundorinafloorwhichisasourceofdanger,shallbeeitherproperlycoveredorsecurelyfenced.

14. Excessive weights (34):Nopersonshallbeemployedinanyfactorytolift,carryormoveanyloadwhichissoheavyastocausehimapossibleinjury.

15. Protection of eyes (35): Effective screensor suitablegogglesbegiven toworkerswhilescrutinisingamanufacturingprocessinvolvingriskofinjurytoeyes.

16. Dangerous fumes and gases (36):Nopersonshallbeallowedtoenteranychamber,tank,vat,pitorotherconfinedspaceinwhichanygas,fume,vapourordustislikelytobepresenttoadangerousextent.Apersoncanentersuchaplaceonlywhenitisprovidedwithamanholeofadequatesizeorothereffectivemeansofegress.Apersonmaybeallowedtoentersuchaspaceonlywhensuitablestepshavebeentakentoremovedangerousfumes.Incaseofanyemergency,suitablebreathingapparatus,revivingapparatus,beltsandropesbekeptready.Asufficientnumberofpersonsinthefactoryshallbetrainedintheuseofallsuchapparatusandinthemethodofrestoringrespiration.

17. Precautions with regard to portable electrical light (36A):Noportableelectriclightoranyotherelectricapplianceofvoltageexceeding25voltsshallbepermittedforuseinsideanychamber,tank,vat,pit,flueorconfinedplace.Ifanyinflammablegas,fumeordustislikelytobepresentinsuchchamber,tank,vat,pipeflueoranyotherconfinedspace,nolamporlight,otherthantheonewhichisflame-proofshallbepermittedtobeusedinsidethefactory.

18. Explosive or inflammable gas or dust (37): Inthemanufacturingprocessifanydust,gasorfumeislikelytoexplodeonignition,preventivestepsshouldbetakento

encloseplantormachineryusedintheprocessz�

removeorpreventtheaccumulationofsuchdust,gas,fumeorvapourz�

enclose all possible sources of ignition.z�

Stepsshouldalsobe taken to restrict thespreadoreffectsof theexplosion.Whensuchexplosiveitemsneedtobeopened,theflowofgasorvapourshouldbestoppedthrougha stop valve, reduce the atmospheric pressure through all practical steps and put theloosenedorremovedpartsinrespectivelocationsinaproperway.Weldingorsolderingofvesselscontainingexplosivematerialshouldbedone,ifnecessary,onlyafterremovingfumes,vapour,etc.,completely.

19. Precautions in case of fire (38):Allpracticablestepsshouldbetakentopreventtheoutbreakoffireinsidethefactory.Incaseoffire,safeescaperoutesshouldbethere.Theexitroutesshouldbemarkedinanunderstandablelanguage.Clearlyaudiblewarningsignalsshouldbegivenincaseoffire.Equipmentforextinguishingfireshouldalsobeavailable.Workersshouldbefamiliarwiththemeansofescapeincaseoffireandtheyshouldbeadequatelytrained,inadvance,intheproceduretobefollowedinsuchacase.Thechiefsafetyinspectormayalsoprescribecertainotherstepstoensuresafetyofworkers.TheInspectormayissueanordertothemanagerofafactorytofurnishdetailsofdefectivepartsandalsocarryoutsafetydrillsandinformhimoftheresults(39).


Notes


20. Safety of building and machinery (40): Whenaparticularbuildingormachineryposesadangertoworkers,itshallnotbeusedtillitisproperlyrepairedoraltered.TheInspectormayprohibittheuseofabuildingormachineduringtheinterveningperiod.Hemayasktheownertocarryoutspecificrepairsbeforeaparticulardate–inwriting(40A).

21. Safety officers (40 B):Asafetyofficershallbeappointedineveryfactoryemploying1000ormoreworkers.Heshould (i) formulatea safetypolicy tobe followed (ii) investigatecausesof injuriesandcircumstances leadingtoaccidents (iii)organisesafetyeducation,trainingandpublicityatvariouslevelsand(iv)actasatechnician,planner,organiserandstimulatorofsafety.

TheStateGovernmenthasthepowertomakerulestosupplementtheprovisionslistedabove (41).

Task Shouldorganisationsbewillingtoinvestmoremoneyinemployeewellness?WhyorWhyNot?

12.3 Management Role in Safety

Managersmust ensure that the physical working conditions in their organisationsmeet theminimumstandardsofthelaw.Thedirectcostofanaccidenttoanemployershowsitselfintheorganisation’sworker’scompensationpremium.Theseincludewagespaidfortimelostduetoinjury,damagetoequipmentandmaterials,personnelcostsincurredtoinvestigateandreportonaccidents,andlostproductionduetoworkstoppagesandpersonnelchangeover.

12.3.1 Role of Supervisors

Supervisorshaveagreatroletoplayinreducingunsafeconditionsandunsafeacts.Forexample,a supervisor inaball-bearingplantmaydischargehishealthandsafety responsibilities thus:Remindinganemployee towearsafetygoggles, checkingon thecleanlinessof theworkspot,observingemployeestoseeifanyofthemhavealcohol,drugoremotionalproblemsthatmayaffect their work behaviour and suggesting equipment changes (such as screens, railings orothersafetydevices)tosafetyexpertsinthefactory.Hecanreduceunsafeactsbyscreeningoutaccidentpronepersonsbefore theyareselected.Safety training,propagandathroughposters,framingsafetyrules,regularinspectionsmayalsohelpsupervisorsinmakingemployeesmoresafety-conscious.Whereemployeescarryout repetitiveoperations, theyare likely topay lessattentiontotheirtasksortheydevelopbadworkhabitsthatcancauseaccidentsandinjuries.Onewaytodealwithworker’sboredomandmonotonyistoredesignthejob.Studiescouldalsobeundertakentolookintofatiguefactors,lighting,tools,equipmentlayout,etc.,soastoimprovetheworkenvironmentandclimateofemployees.

12.3.2 Effective Safety Management

Effectivesafetymanagementconsiders the typeofsafetyproblems,accidents,employeesandtechnologyintheorganizationalsetting.Theroleofhumanbeings insafetyrelatedproblemsshouldalsobelookedinto.Safetyeffortswillnotbesuccessfulifwetrytoengineermachineswithoutpayingattentiontobehaviouralreactionsofemployees.Acomprehensiveapproachtosafetyincludesthefollowingsteps:

1. Safety policy:Everyfactorymustformulateandimplementasafetypolicy.Theobjectiveofsuchapolicyshouldbetoeliminateorreduceaccidentsandinjuriesintheworkplace.


Notes


2. Top management support:Thesafetypolicymustbesupportedbytopmanagementfirmly.Safetycommitmentshouldbeginwithtopmanagement.Thecommitmentmanifestsitselfin top managements’ being personally involved in safety activities in a routine way;givingsafetymatterstoppriorityincompanymeetingsandproductionscheduling,givingcompanysafetyofficerhighrankandstatusandincludingsafetytraininginnewworkers’training.

3. Safety committee:Topromotesafetyconsciousnessamongemployees,safetycommitteescouldbe constituted,under the chairmanshipofa safetyofficer.Thecommittee shouldconsistof representatives fromworkersandsupervisors fromvariousdepartmentsandlevels.Itmustmeetregularlytoconductsafetyreviewsandmakerecommendationsforchangesnecessarytoavoidfutureaccidents.

4. Safety discipline motivation: Safety rules must be enforced strictly. Violations shouldnotbetolerated.Frequentreinforcementoftheneedforsafebehaviourandfeedbackonpositivesafetypracticeshavebeenfoundtobeextremelyeffectiveinimprovingworkers’safety.Rewardsandcertificatescouldbeofferedtoemployeesforgoodsafetyrecords.Topromoteemployeeinvolvementandmotivation,safetycontestscouldbeheldfollowedbyincentivesforsafeworkbehaviour.

5. Safety engineering: To minimise workplace accidents, proper engineering procedurescouldbe followed.Fencingofmachinery, adequate spacebetweenmachines,partsandequipment, use ofmaterial handling equipment, safetydevices, propermaintenance ofmachines,etc.,areundertakentopreventaccidentsfromoccurring.

6. Safety training and communications: Safety training can also reduce accidents. It isespeciallyusefulincaseofnewrecruits.Traininginsafepractices,procedures,materialhandling, first aid, fire prevention, etc., could be offered to them. Posters, newsletters,displays,slogansandsignscouldalsobeusedtopromotesafetyconsciousnessthroughouttheorganisation.Anotherway tocommunicate safety ideas is throughsafetyfilmsandvideotapes.

7. Accident investigation and research: Whenaccidentstakesplace,theyshouldbethoroughlyinvestigated tofind theactual reason (poor lighting,poorventilation,wetfloor etc.) asearlyaspossible.Suchanearlyprobeisnecessarytoensurethatconditionsunderwhichtheaccidentoccurredhavenotchangedsignificantly.Photographs,videotapescouldbeused to gain better view of the actual scene. In the next step, the injured employee orhissupervisorsshouldbeinterviewedtofindoutwhathappenedandhowtheaccidentoccurred.Inthethirdplace,anaccidentinvestigationreportshouldbepreparedindicatingwhathashappenedandrecommendingstepstopreventsimilaraccidentsfromoccurring.

8. Evaluation of safety effort: Organisationsshouldmonitorandevaluatesafetyeffortsbyconductingsafetyauditsatintervals.Accidentandinjurystatisticsshouldbeperiodicallycomparedwithpreviousaccidentpatterns tofindany importantchanges.Thisanalysisshouldbedesignedtomeasureprogressinsafetymanagement.

9. Governmental support:ToextendsupporttosafetyrelatedactivitiestheGovernmentofIndiaestablishedtheNationalSafetyCouncilin1966.Theprincipaljobofthiscouncilistopromotesafetyconsciousnessat theplant levelandconductsafetyprogrammes.ThenationalSafetyDayiscelebratedeveryyeartosignifythefoundationdayofthecouncil.Nationalsafetyawardsaregiveneveryyeartoindustrialunitsforensuringaccident-freeenvironments.

12.4 Causes of Accidents

Thecauseofanaccidentcanbegenerallyclassifiedaseitherhumanorenvironmental.Humancauses are directly attributable to human error brought about by carelessness, intoxication,


Notes


daydreaming, inability to do the job, or other human deficiency. Environmental causes, incontrast,areattributabletotheworkplaceandincludethetools,equipment,physicalplantandgeneralworkenvironment.Thehumanfactorisresponsibleforthevastmajorityofaccidents.Nomatterhowmucheffortismadetocreateaworkenvironmentthatisaccidentfree,alowaccidentraterecordcanonlybeachievedbyconcentratingonthehumanelement.

Oneofthemainobjectivesofsafetyengineersistoscrutinizetheworkenvironmenttolocatesources of potential accidents. Some people are more prone to accidents than are others. Itwould certainly be to themanagement’s advantage if employee accident-proneness couldbeanticipated.

12.5 Preventions of Accidents

12.5.1 Predict the Accident-prone

Novalid testofaccident-pronenesscurrentlyexists.Nor is thereanysubstantiveevidence toindicate that certainpersonality types consistentlyhavemoreaccidents thanwouldoccurbychance.Factorssuchasvisualskills,age,andlengthofservicewiththeorganizationhavebeenfoundtoberelatedtoincreasedaccident-inducingbehavioursoncertaintypesofjobs.

Someareasofresearchsuggestthatcertainpeoplearemoreaccident-prone.Thepredictorsofaccident-proneness are:

(i) Life-Change Components: From studies it is revealed that patients frequently cited anincrease incertain lifeevents that requiredsome formofadaptiveorcopingbehaviourasprecedingchangesintheirhealthstatus.Eventsofordinarylife—marriage,vacations,changingjobs,troublewithin-law;couldinitiatechangesinanindividual’shealth.

(ii) Biorhythmic Patterns : Theterm‘biorhythm’meansregularlyrepeatedlifecycles.Accordingtothetheoryunderlyingbiorhythmicpatterns,ourlivesaregovernedbythreecycles(a)anemotionalcycle,whichlaststwentyeightdaysandaffectsone’ssensitivity,attitudesandirritability(b)aphysicalcycle,whichlaststwenty-threedaysandaffectsphysicalstrength,endurance, energy, resistance, andphysical confidence and (c) intellectual cycle,whichlaststhirty-threedaysandaffectsmemoryfunctionsandmentalresponses.

(iii) Attention Diagnostic Method (ADM): Anewtechnique,theAttentionDiagnosticMethod(ADM),appearstoofferpotentialasapredictorofaccidents.Itisbasedontheideathataccident-pronepersonssufferfromattentionfailure.

12.5.2 Preventive Measures

Wecanlooktotraditionalmeasuresforpreventingaccidents.Theyareeducation,skilltraining,engineering,protectiondevices,andregulationenforcement.

(i) Education: Toinducepeopleto ‘thinksafety’, it isnecessarytocreatesafetyawareness.Thatistheobjectiveofsafetyeducation.Popularmethodsforcreatingsafetyawarenessinclude exhibiting easily visible signs that proclaim safety slogans; placing articles onaccident prevention in organisation newsletters.

(ii) Skill Training: Whenemployeesundergotraining,safetyissuesandpreventivetechniquesshouldbediscussed.Incorporatingaccidentpreventionmeasuresintothelearningprocess,ratherthanatsomelaterdate,makesthemanaturalpartofthejobactivity.

(iii) Engineering: Itispossibletoutiliseengineeringmethodstopreventaccidentsthroughboththedesignoftheequipmentandthedesignofthejobsthemselves.Engineeringcanalsoconsidertheworker-machineinterplayinthedesignofjobs.Whethertheoperatorstands


Notes


orsits,andhispositionrelativetothecontroldevicesthathemonitors,areexamplesoffactorsthataffecttheamountofstooping,twisting,tension,andsoforth—factorsthatcanand do increase accident rates.

(iv) Protection: Peopleshouldbeprovidedwithprotectiveequipmentwherenecessary.Safetyshoes,gloves,hardhats,safetygaggles,andnoisemufflersaresomeofthemorepopularprotectiveequipment that employeesneed towear.Butprotection isnot limited to theemployees.Protectionofmachinery,too,canpaydividendsbyfeweraccidents.Preventivemaintenanceofmachinerycanavoidfires,explosionsandoilleakages.

(v) Regulation Enforcement: Management must ensure that people do not smoke in ‘Nosmoking’areas,thatpeoplenotoperatingmachinesstaybehinddemarcatedsafetyzone,helmetsarealwayswornintheplantifthatistheruleoftheland.

(vi) Inspection of Work Surroundings: Theonlywaymanagementcanbeassuredthatrulesandregulationsarebeingenforcedistodevelopsometypeoffeedbacksystem.Thiscanbeprovidedbyinspectionoftheworksurroundings.

Self Assessment


1. Itisinimpossibletoeliminateaccidentsjustbyreducingunsafeconditions.

2. Certainjobsareinherentlymoredangerous.

3. Theeffectsofalcoholismontheworkerandtheworkaresevere.

4. Jobstresshaspleasantconsequencesforbothemployerandemployee.

5. Ifyouprimarilyworkindoors,youmaybeexposedtoairbornehealthhazards.

6. The heart of safetymanagement is an organisational commitment to a comprehensivesafetyeffort.

7. Today employers are not obliged to give their employees safe, healthy and secureenvironment.

8. Designingsafetypoliciesandrulesanddiscipliningviolatorsareimportantcomponentsofsafetyefforts.

9. Convincingemployeestokeepsafetystandardscontinuouslyinmindwhileperformingtheirjobsiseasy.

10. Wellness programmes are designed to maintain or improve employee health beforeproblemsarise

11. Safetyinvolvesprotectingthementalwellbeingofpeopleonly.

12. Thebuildingofficerhastheresponsibilityofformulatingasafetypolicytobefollowedbyallworkinginhisbuilding.

13. Noportableelectriclightoranyotherelectricapplianceofvoltageexceeding25voltsshallbepermittedforuseinsideanychamber.

14. Themainpurposeofeffectivehealthprogrammesinanorganisationistopreventwork-related injuries and accidents.

Fillintheblanks:

15. The main purpose of effective safety programmers in an organization is to prevent………………injuriesandaccidents.


Notes


16. Onemethodthatcompaniesareusingasabroad-basedresponsetohealth issues is the………………

17. The cause of an accident can be generally classified as either ……………… or……………….

Case Study Bhopal Gas Tragedy

TheBhopalplantwasoperatedbyUnionCarbideIndiaLtd.(UCIL)withtheparentcompany,UnionCarbide,owning51%ofit.Afterinstallingtheplantandtrainingitsfirststaff,UnionCarbidewithdrewfromthedailyoperationoftheplant.

On December 3, 1984, a runaway reaction had occurred in the storage tank ofmethyliscocyanate (MIC),whichwasused tomanufactureapesticide.Thevalvesof thetankhadburstandacloudofpoisonousgashadescaped.ClimaticconditionskeptthegasfromdissipatingandthewindscarriedittonearbyshantytownsandthepopulouscityofBhopal,wheremanypeopleeitherdiedintheirsleeporwokeanddiedwhilefleeing.Thosewhosurvivedwerenotequippedforthedisaster,andoverthenextfewweeksthousandsmoredied.Before theaccident, theplanthadbeenunderagreatdealofpressure tocutcosts.Becauseofproductionproblems,itwasunabletorunatmorethan50%capacity,andmeetingitsoriginalprofitpredictionshadbecomeimpossible.Thusanumberofshortcutshadbeentakeninsuchmattersascrewtraining,staffingpatternsandmaintenanceschedules.Althoughtheplanthadbeenvirtuallyshutdownforweeksforextensivemaintenanceandcleaning,anumberofimportantsafetyfeaturesremainedinoperable.

Perhapsmostimportantly,thestaffdidnotrealisethedangerofthesituation—theyeventooka teabreakafter the leakhadbeennoticed, thinkingtheyevenwouldhaveplentyof time tofix it.Theoperator in the control roomdidnotnotifyhis superiorwhen thetemperaturebegantoriseinsidethetank,andtheentiresituationwentuntendedforatleast an hour.

AsCEOofUnionCarbide,WarrenAndersonneededtoknowexactlywhathadhappenedinBhopal,India,thatnightforanumberofreasons.Heknewthathewouldhavetoexplainthetragicaccidenttoemployees,togovernmentofficialsinboththeUSandIndia,tothecourts,andtothepeople.Yethecouldnotgetanswerstohisownpreliminaryandpersonalquestions.Whentelephonecontactfailedtoyieldanswers,AndersongotonaplaneandflewtoIndia,wherehewasimmediatelyplacedunderhousearrest—unabletoattendtotheverybusinessthathadbroughthimthere.Hisplantmanagershadalsobeenarrestedandwerenotallowedtotalktoanyone.IndiangovernmentofficialshadclosedtheplanttoUnionCarbidemanagementinordertopreventtamperingwithevidence.

Freedonbail,AndersonwasinformedthatthegovernmentofIndiaexpectedCarbidetopayastronomical compensationdamages, farbeyondCarbide’s$200million insurancecoverage.Ultimately,thisdemandbecamethefirstofferinalong,agonisingnegotiationprocessthat,inlate1989,sawUnionCarbidereachinga$470millionsettlementwiththegovernmentofIndia.Inreturn,India’sSupremeCourtorderedthedismissalofallcivilandcriminalchargesagainstCarbideanditsofficersandgrantedthemfurtherimmunityfromprosecution.Carbide’scasewasheardbyafivejudgebench.

Anumberofvoluntaryorganisations,claimingtorepresentthevictims,petitionedIndia’ssupremeCourt,demandingthatthesettlementbevoidedonthegroundsthatitgrosslyunderestimatedtheactualnumberofpeoplewhowereseverelyinjured.

Contd…


Notes


Meanwhile,themoneysetasideforthesettlementsitsinabankandcannotbeusedtohelptherealvictims,thecitizensofBhopal.

Questions

1. Wasthereahumanerrorincausingtheaccident?

2. Howfarwasmanagementprudentincost-cuttingataplantwhichismanufacturingadeadlyproduct?

3. IsthegovernmentrightinstickingtoasettlementwithUnionCarbide,onbehalfofallvictims?

4. Whoisresponsiblefornotdistributingthesettledamounttothevictims?

12.6 Summary

Health is a general state of physicalmental and emotionalwell-being. Safety involveszz

protectingthephysicalwellbeingofpeople.

The legal provisions governing health cover areas such as cleanliness, waste disposal,zz

proper ventilation and temperature control, preventing accumulationofdust, avoidingovercrowding,providingwholesomedrinkingwater,properlighting,havingarequisitenumberoflatrinesandurinals,etc.

Healthpromotioncoversareassuchashealthyliving,physicalfitness,smokingcessation,zz

stressmanagementetc.

Employee assistance programmes offer counselling, medical help and rehabilitationzz

opportunitiestoalltroubledemployees.

Themainpurposeofeffectivesafetyprogrammesinanorganisationistopreventwork-zz

related injuries and accidents.

Safetymembersinfactoriescoverslippingandfallinghazards,collisionandobstructionzz

hazards,equipmentshazards,firehazards,hazardsfromfallingobjectsetc.

Supervisorsplayagreatroleinreducingunsafeconditionsandunsafeacts.zz

Effectivesafetymanagementincludesestablishingasafetypolicy,ensuringtopmanagementzz

support, creating safety committees, promoting safety discipline, and instituting safetyengineering procedures, offering safety training, investigating reasons for accidentsthoroughly,andevaluatingsafetyeffortsfromtimetotime.

12.7 Keywords

Alcoholism : Alcoholism is one of the nation’s largest health problems. Alcoholics, whenemployed cause reduction in employeeproductivity, increased absenteeism,more on-the-jobaccidents,andhigherhealthcarecosts.

Effective Safety Management :Effectivesafetymanagementconsidersthetypeofsafetyproblems,accidents,employeesandtechnologyintheorganizationalsetting.

Employee Assistance Programmes:Programmesthatprovideprofessionalcounselling,medicalhelpandrehabilitationopportunitiestoalltroubledemployees.

Health Promotion:Healthpromotionat theworkplacemaybebroadlydefinedasanyefforttopreventdiseaseorprematuredeaththroughbehaviouralandorganisationalchange.Healthpromotionfocusesonpreventionratherthantreatmentorcure.


Notes


Health:Ageneralstateofphysical,mentalandemotionalwell-being.

Safety:Protectionofaperson’sphysicalhealth.

Security:Protectionofemployerfacilitiesandequipmentfromunauthorisedaccessandprotectionofemployeeswhileonworkpremisesorworkassignments.

Troubled Employee:Anindividualwhoisconfrontedbyunresolvedpersonalorworkrelatedproblems.

Wellness Programmes:Programmesthatfocusonpreventiontohelpemployeesbuildlifestylesthatwillhelpthemtoachievetheirfullphysicalandmentalpotential.


1. Commentonthepragmatismofthelegalprovisionsregardingemployeehealth,undertheFactoriesAct,1948.

2. Howdoworkingconditionsaffectthehealthofemployees?Whatstepsshouldbetakentoprotectemployeehealth?

3. Identify the causes for accidents in the factory.What steps should be taken to ensureindustrialsafety?

4. Whatdoyouthinkcausesunsafeacts?Whatwillbetheroleofasupervisorinsafety?

5. Suggestatleastfivetechniquesforreducingaccidents.

6. “Accidentsdonotjusthappen,theyarecaused”.Comment.

7. Whatstepsdoyousuggesttobetakenbymanagementtoincreasemotivationforsafety?

8 Discusstheappropriatenessintoday’sworld,ofthemainactsrelatedtothesafetyissuesoftheindustrialworkersinIndia.

10. Whatstepswouldyousuggesttobefollowedwhileformulatingasafetypolicy?

11. ExaminethehighlightsoftheFactoriesAct,1948.

12. Whatdoyouthinkarethecoreareasforthehealthhazardwhenitcomestotheworkplaceenvironment?


1. True 2. True

3. True 4. False

5. True 6. True

7. False 8. True

9. False 10. True

11. False 12. False

13. True 14. False

15. work-related 16. employeeassistanceprogramme

17. human,environmental


Notes











Online links http://www.bis.org.in/forms/ohsms.htm

www.bainessimmons.com

www.agius.com/hew/resource/manage.htm

http://en.wikipedia.org/wiki/Occupational_safety_and_health

www.bainessimmons.com

industrialrelations.naukrihub.com/employee-health.html


Notes


Unit 13: Workplace Health Hazards

CONTENTS

Objectives

Introduction

13.1 WorkplaceEnvironment

13.2 WorkplaceHealthHazards:ProblemsandRemedies

13.3 Indian Scenario

13.4 Summary

13.5 Keywords



Objectives


Definethetermhealthhazardszz

Statetheproblemscreatedbyhealthhazardszz

Understandtheremediestoproblemscreatedbyvariousworkplacehealthhazards.zz

Introduction

Thelargemajorityofworkersworkininhumanworkingconditions.Sadtoreport,theworkforceisabundant, lowskilledandeasilyavailableatshortnotices.Thehighrateofunemploymentcompelsthevastmajorityofunorganizedlabourforcetobepreparedforbigsacrificesoneveryfront. The vulnerable situation is being thoroughly exploited by greedy employers at everystage.

Itdoesn’tmatterwhattheworkplaceenvironment,theproduct,ortheservice,propermaintenanceandgoodhousekeepingroutinesarecriticaltopropersafety,andcontrollinghealthissues.Thesetwoimportantcomponentstoavoidingexcesshealthissuesareextremelycomplimentarytooneanother, andoftenoverlap in several cases.However, somedistinction canbemadewhen itcomestoformingaproperhealthissuespolicy.

Whenitcomestohealthissues,maintenanceisthetermthatreferstotheworkthatisnecessaryforkeepingthebuilding,equipment,andmachineryinworkingorderandsafetouse.Italsoreferstotheupkeepofallofthesanitaryandwelfarefacilities,thecleaning,sanding,andpaintingofallwalls,ceilings,andfixtures.Flooringisalsokeptingoodrepair.

On the other hand, good housekeeping to avoid health issues is regular daily cleanlinessefforts. This includes tidiness, and good order of all of the different items in theworkspaceenvironment.

Maintenanceandhousekeepingarewhollydependentupononeanothertoeffectivelypreventhealthissues.Forexample,atatteredcarpetishardtokeepclean,andtheworkenvironmentishardtokeepdryifthereisaleakyroof.Similarly,bymakingahabitofgoodhousekeeping,maintenancewillbemucheasierandfaster.


Notes


!Caution Gettingworkismoreimportantthanlookatthehazardsattheworkspot—makingamockeryoftheadministrativemechanismsputinplacebythegovernment.

13.1 Workplace Environment

Management’snewchallengeistocreateaworkenvironmentthatattracts,keeps,andmotivatesitsworkforce.Theresponsibilitylieswithmanagersandsupervisorsatalllevelsoftheorganization.Businessesmuststepoutsidetheirtraditionalrolesandcomfortzonestolookatnewwaysofworking.Theyhavetocreateaworkenvironmentwherepeopleenjoywhattheydo,feelliketheyhaveapurpose,haveprideinwhattheydo,andcanreachtheirpotential.

Today’sworkplaceisdifferent,diverse,andconstantlychanging.Thetypicalemployer/employeerelationshipofoldhasbeenturnedupsidedown.Workersarelivinginagrowingeconomyandhavealmostlimitlessjobopportunities.Thiscombinationoffactorshascreatedanenvironmentwherethebusinessneedsitsemployeesmorethantheemployeesneedthebusiness.FiveFactorsThat Affect Employee’s ProductivityManagers and supervisors will need to be comfortablewithworkingwiththewholegamutofworkplacefactorsthatinfluenceemployeemotivation.Attitude,Boss,Health,TechToolsandDownsizingandOutsourcing.

Theunderlyingthreadismanagementhasstartedtorealizeifitsemployeesaredissatisfied,theycaneasilyfindemploymentelsewhere.Sothesmartmanagersandbusinesseshavestartedtocreateapositiveworkenvironmenttobethewinnersoftomorrow’sworkplace.

Businessleadersareurgedtotakemoreaccountofthelinksbetweengoodworkplacedesignandimprovedbusinessperformancewhenplanninganddesigningnewbuildings,andoverhaulingold ones.

13.2 Workplace Health Hazards: Problems and Remedies

Themainpurposeofeffectivesafetyprogrammesinanorganisationistopreventwork–relatedinjuries and accidents.

Did u know?Manydeaths, injuriesandillnessesoccurbecauseofsafetyviolations,poorequipmentdesignorgrossnegligence.

Awellmanagedfactorywillseetoitthattherearenophysicalhazardssuchas(i)slippingandfallinghazards,(ii)collisionandobstructionhazards(iii)equipmenthazards,(iv)firehazards (v)hazardsfromfallingobjects,etc.(Bernklau;Philson)

(i) Slipping, tripping, or falling on the floor hazards: People fall when they slip. Highlypolished surfaces, accumulation of water, soap, or oil, etc., on the floor, torn or loosecoveringscausethefloortobeslippery.

(ii) Obstruction and collision hazards: Whenthefactorylayoutandspacemanagementarepoor, it results in improper placement of furniture and equipment causing collision ofemployeeswithequipmentandmachinery,tables,chairs,etc.Further,overcrowdingandanarrowspaceformovementalsoresultsinaccidentalcollisionbetweenemployees.

(iii) Equipment hazards:Quiteoften,unguardedmovingparts,wiring,switchesandcards,edgesofmetalequipment,etc.,cancauseinjuriestoemployeesworkinginthesesurroundings.Further,wastepaperbaskets,lobbies,plumbingfixturesandsmallsnailcartsalsocauseproblemsforemployees.Alltheseshouldbeguardedagainst.


Notes


(iv) Hazards from falling objects: When file cabinets, lockers and shelves are not properlyplaced,theycouldfallonemployeesandinjurethem.Also,thestockedmaterials,paperstands,whenplacedontheworkingtablesmightfallonemployees.

(v) Fire hazards:Theplaceswherepaperworkisheavyandprecautionarymeasurestakenarenil,thepossibilitiesofaccidentsarehigh.Improperdisposalfacilitiesforsmokers,lackofprovisionofsafetycansforinflammablematerials,non-existenceoffireescapesandexitsarethefactorsthatcontributetofireaccidents.Itisnecessaryforthemanagertoseethatfireprotectionequipmentandfireextinguishersareavailableatalltimesinthefactory

Notes Someoftheotherworkplacehazardsinclude:

Lead

Leadisusedinmanyindustries,includingconstruction,mining,andmanufacturing.Ineachoftheseindustries,workersareatriskofbeingexposedtolead,bybreathingitin,ingestingit,orcomingincontactwithit.Leadisatoxicmetalthatisalsousedinburningfossilfuels.Itcanbecombinedwithothermetalstoproducealloys.Leadandleadalloysareoftenusedtomakebatteries,ammunition,andothermetalproducts.Earlierleadwasalsousedregularlyinpaint,ceramics,caulk,andpipesolderamongotherthings.Becauseof its potential health problems, the amount of lead used in these products today hasreduced to a great extent.

Noise

Occupational hearing loss is the most common work-related injury. Noise is both ahealthandsafetythreattominers.Themainhealtheffectofoverexposuretoloudnoiseispermanenthearinglosscausebydamagetothesensorycellsintheinnerear.Noiseisalsoanindirectsafetyhazardbecauseitcan“mask”importantsoundslikebackupalarmsandspokenwarnings.Thesehazardsarewellknownandbeyondscientificdispute.Still,noiseremainsasignificantprobleminmining.

Overthepastfewdecades,muchhasbeenlearnedabouttheimplementationofhearinglosspreventionprograms.Theeightcomponentsofasuccessfulhearinglosspreventionprogram include: (1) noise exposure monitoring, (2) engineering and administrativecontrols,(3)audiometricevaluation,(4)useofhearingprotectiondevices,(5)educationandmotivation(6)recordkeeping,(7)programevaluation,and8)programaudit.

Indoor Environment Quality

“Indoor Environmental Quality,” simply mean: the quality of the air in an office orother building environments. Workers are often concerned that they have symptomsorhealthconditionsfromexposurestocontaminantsinthebuildingswheretheywork.Onereasonforthisconcernisthattheirsymptomsoftengetbetterwhentheyarenotinthe building.While researchhas shown that some respiratory symptoms and illnessescanbeassociatedwithdampbuildings, it isstillunclearwhatmeasurementsof indoorcontaminantsshowthatworkersareatriskfordisease.Inmostinstanceswhereaworkerandhisorherphysiciansuspectthatthebuildingenvironmentiscausingaspecifichealthcondition,theinformationavailablefrommedicaltestsandtestsoftheenvironmentisnotsufficienttoestablishwhichcontaminantsareresponsible.Despiteuncertaintyaboutwhattomeasureandhowtointerpretwhatismeasured,researchshowsthatbuilding-relatedsymptomsareassociatedwithbuildingcharacteristics,includingdampness,cleanliness,and ventilation etc.

Contd…


Notes


Indoorenvironmentsarehighlycomplexandbuildingoccupantsmaybeexposed toavarietyofcontaminants(intheformofgasesandparticles)fromofficemachines,cleaningproducts, construction activities, carpets and furnishings, perfumes, cigarette smoke,water-damagedbuildingmaterials,microbialgrowth(fungal/moldandbacterial),insects,andoutdoorpollutants.Otherfactorssuchasindoortemperatures,relativehumidity,andventilationlevelscanalsoaffecthowindividualsrespondtotheindoorenvironment.

Understandingthesourcesofindoorenvironmentalcontaminantsandcontrollingthemcanoftenhelppreventorresolvebuilding-relatedworkersymptoms.Practicalguidanceforimprovingandmaintainingtheindoorenvironmentshouldbeknown.

Workerswhohavepersistentorworseningsymptomsshouldseekmedicalevaluationtoestablishadiagnosisandobtainrecommendationsfortreatmentoftheircondition.

Communicable Disease

Diseasessuchascoldsandtheflu,canknockoutsuchlargeportionsofyourworkforcedepends partly on our society’s working culture. “We don’t discourage people fromcomingtoworkwhenthey’reill,”Thereisalmostanencouragementtocomeinandworkbecausewelimitthenumberofsickdays”employeeshave.

Apartfromgivingemployeesmoreflexiblesickleave,smallbusinessescanalsopreparefor epidemics by testingwhether employees have the infrastructure towork remotelyif they are ambulatorybut contagious.This can include ensuring that employeeshaveaccesstoworkfromhome,thoughthiswon’tworkinfieldssuchasmanufacturingwhereemployeesneedtobeonsitetoperformtheirjobsandresponsibilities.

Self Assessment

Fillintheblanks:

1. Awellmanagedfactorywillseetoitthatthereare………………physicalhazards.

2. Thelargemajorityofworkersworkin………………workingconditions.

3. Theworkforceisabundant,lowskilledandeasilyavailableat………………notices.

4. The………………rateofunemploymentcompelsthevastmajorityofunorganizedlabourforcetobepreparedforbigsacrificesoneveryfront.

5. The………………situationisbeingthoroughlyexploitedbygreedyemployersateverystage.

6. Leadisatoxicmetalthatisalsousedin……………….

7. Occupationalhearing………………isthemostcommonwork-relatedinjury.

8. Noiseisalsoan………………safetyhazardbecauseitcan“mask”importantsoundslikebackupalarmsandspokenwarnings.

9. ………………environmentsarehighlycomplexandbuildingoccupantsmaybeexposedtoavarietyofcontaminants.

10. Diseasessuchascoldsandtheflucomesunder………………category.

13.3 Indian Scenario

Apartfrommechanicalfailures,unsafephysicalconditions,employeeignoranceandnegligencetherecouldbeseveralotherreasonsleadingtoindustrialaccidentsinIndia.Thereare,ofcourse,


Notes


innumerablelawsgoverningemployeesafety(suchastheFactoriesAct,theIndianElectricityAct, thePesticidesAct, theBoilerAct, theEnvironmentProtectionActetc.)but theelaborateprovisionscontainedthereinarenotstrictlyenforced.Oftentheinspectors,appointedforthispurposearemadetocover lotofground, leavingvery little timeforastringent inspectionofvariousfactorieswithintheirjurisdiction(eachinspectorcoveringmorethan150factoriesonanaverageinayear).Tocompoundtheproblemsfurther,theinspectorsaremorethanwillingtobendtherulesforaprice.Theyarereadytoapproveanythingandeverythingiftheemployeriswillingtopleasethem.Asaresultwehavelargefactoriesemployinghundredsofworkerswithout fire fighting equipment, and safety devices. The private sector is, not surprisingly,guiltyofnegligenceon thesafety front.Theyaremostlyconcernedaboutcuttingcostsonallfronts–toremaincompetitive–insteadofprotectingthelivesofworkers.Theemploymentofwomenandchild labourondangerousmachines isanothercomplicating factor (especially incrackermanufacturingunitsinandaroundSivakasi).AccordingtoDrSubodhMedhekar,notedindustrial accident investigator, “Indiahas safety standards and regulationsbut they arenotrigorouslyimplemented.Thecompaniesarenotverystrictaboutimplementingthestandards”.HeaddedthatimplementingnewsafetystandardscostsalotofmoneyandIndiancompaniesarenotwillingtoshelloutthatkindofmoney.Ifthestandardsweremadecompulsoryforallcompaniesthentheywouldbemorewillingtosharethecost.“IntheUS, ifonelife is lostorfivepeopleareinjuredinanindustrialaccident-thenitisaverybigdeal.Companiespayhugeinsurance claims and damages. In India life is cheap,” he said. (Industrial Safety aspect notgettinghighpriority

Task DosurveyonIndianscenarioatthepresenttimeregardinghazardsattheworkplace.Gathertheinformationsandpreparereportonit.

Self Assessment


11. Theprivatesectoris,notsurprisingly,guiltyofnegligenceonthesafetyfront.

12. They aremostly concerned about cutting costs on all fronts – to remain competitive –insteadofprotectingthelivesofworkers.

13. Theemploymentofwomenandchildlabourondangerousmachinesisanothercomplicatingfactor.

14. AccordingtoDrSubodhMedhekar,notedindustrialaccidentinvestigator“Indiahassafetystandardsandregulationsandtheyarerigorouslyimplemented”.

15. Allprivatesectorcompaniesareverystrictaboutimplementingthestandards.

Case Study A Question of Safety

MuraliVijay, safetyengineer forSQLManufacturing,waswalking through theplantwhenhespottedasituationthatimmediatelycaughthisattention.Someemployeeshadbackedoutofaroomwhereseveralchemicalswereusedina

criticalmanufacturingprocess.Murali inspectedtheroombutcouldnotdeterminethatanythingwaswrongorevendifferentfromanyotherday.Hewaspuzzledastowhythe

Contd…


Notes


workerswerereluctanttoresumetheirtasks.Asitturnedout,theemployeeswerenotonlyhesitanttoreturntowork,theywereadamantinmaintainingthatconditionsintheroomwereunhealthy.Theroomwasfullofhazardoussubstances,placedalloverinanuntidymanner.Thestoresinchargewentonalongleavetocompletethemarriageofhisonlydaughter.Thepersoninchargecurrentlyisnotabletocopeupwiththechallengeandisnotabletomeetthefrequentdemandsofvariousdepartments,especiallyduringrushhours,andpositionthedangerousstuffinanappropriatemanner.Apartfromcausingirritationandbreathlessnessinthenearbyareas,thepositioningofdangerousmaterialsallaroundhasbecomeatopicofdebateanddiscussionamongworkingclassduringtheirinformalgatherings.Sensinganopportunitytoattackmanagement,oneoftherepresentativesfromaminorityunionhasbeenrakingupthisissueagainandagain—duringthelasttwoorthreedays—puttinganaccusingfingerontheproblemcausingtroubletoworkersinthechemicals department. Murali and the group’s supervisor, Rajiv Gupta, discussed thesituationandwonderedwhethertheyshouldorderthepeopletoresumeworksincethedepartmentwasalreadybehindschedule.

Question

HowshouldMuraliandthegroupsupervisoryrespondtothissituation?

13.4 Summary

Thelargemajorityofworkersworkininhumanworkingconditions.zz

Thehighrateofunemploymentcompelsthevastmajorityofunorganizedlabourforcetozz

bepreparedforbigsacrificesoneveryfront.

The vulnerable situation is being thoroughly exploited by greedy employers at everyzz

stage.

The main purpose of effective safety programmes in an organisation is to preventzz

work-relatedinjuriesandaccidents.

Awellmanagedfactorywillseetoitthattherearenophysicalhazards.zz

Lead and lead alloys are often used to make batteries, ammunition, and other metalzz

products.

Becauseofitspotentialhealthproblems,theamountofleadusedintheseproductstodayzz

has reduced to a great extent.

The legal provisions regarding safety cover areas such as fencing of machinery, notzz

employingyoungpersonsneardangerousmachines,usingsafedevicestocutoffpower,usinggoodhoistsandlifts,givingenoughroomforworkerstomovearoundsafely,qualityflooring,providingventilatorsforpumpingoutfumes,gases;andprecautionstobetakentopreventfireaccidentsetc.

13.5 Keywords

Diversity in the Workplace:Diversityintheworkplacereferstothevarietiesofpeoplefoundinaworkenvironment.Peopleofdifferentraces,genders,religions,politicalpersuasions.

Health:Healthisastateofwellbeing.Itnotonlyincludesphysicalwellbeing,butalsoemotionalandmentalwellbeing.

Housekeeping:Housekeeping is the sort ofmanagement, care, and servicingofproperty andequipmentofanindustrialorcommercialbuildingororganization.


Notes


Indoor Environmental Quality:IndoorEnvironmentalQuality,simplymean:thequalityoftheairinanofficeorotherbuildingenvironments.

Maintenance:Maintenanceistokeepinproperorgoodcondition.

Noise:Thewordnoisemeansanyunwantedsound.

Welfare:Itisfinancialorotherassistancetoanindividualorfamilyfromacity,state,ornationalgovernment.

Workplace Environment:Itreferstothephysicalsurroundingsrequiredforhumanactivityorindustrial processes.


1. Anunhealthyworkenvironmentcanlowerproductivity,contributeto lowmorale,andincreasemedicalandworkers’compensationcosts.Workingindividuallyorinteams,listspecificwaysmanagerscan:

(a) Improveindoorairquality.

(b) Accommodatethedesiresofsmokersandnon-smokers

(c) Maketheworkplacefreefromviolentattacksfromaggressiveemployees(unionised)at the slightest provocation.

2. Definethetermworkplaceenvironment.

3. Whatismeantbyhealthhazards?

4. Howdoeshousekeepingishelpfulinreducinghealthhazards?

5. Whataretheothermethodsofpreventing/reducinghealthhazards?

6. WhatisIndoorenvironmentalquality?Howitcanbeimproved?

7. Whatisemployeewelfaremeans?

8. Whatarethevariousworkplacehealthhazardousproblems?

9. Howdoesnoiseandleadareharmfulhazards?Discuss.

10. Whatdoyouthinkarethecoreareasforthehealthhazardwhenitcomestotheworkplaceenvironment?

11. DiscussthepresentstateofIndianscenarioforworkplacehealthhazards.

12. Discussthefollowingstatementbyasupervisor;“IfeelitismydutytogetinvolvedwithmyemployeesandtheirpersonalproblemstoshowthatItrulycareaboutthem.”


1. no 2. inhuman

3. short 4. high

5. vulnerable 6. burning fossil fuels

7. loss 8. indirect

9. Indoor 10. communicabledisease

11. True 12. True


Notes


13. True 14. False

15. False










Online links http://en.wikipedia.org/wiki/Occupational_safety_and_health

http://www.cdc.gov/niosh/hhe/

http://www.inc.com/guides/2010/05/9-avoidable-workplace-health-safety-hazards.html

http://www.compass-hs.com/articles/identify_workplace_health_hazards.htm

www.pitt.edu/~super7/13011-14001/13471.ppt


Notes


Unit 14: Global HRM

CONTENTS

Objectives

Introduction

14.1 Objectives

14.2 Globalization

14.3 FunctionalTransformationofHR–FromSupportFunctionto Strategic Function

14.4 Global Perspective of HRM

14.5 International HR Challenges

14.5.1 SelectivityinRecruitment

14.5.2 StaffingStrategy

14.5.3 SelectionCriteriaforInternationalAssignments

14.5.4 Cultural Integration

14.5.5 ManagingWorkforceDiversity

14.5.6 EmployeeInformationSharing

14.5.7 TalentManagementStrategies

14.5.8 InternationalCompensationManagement

14.5.9 ApproachestoInternationalCompensation

14.6 WorkLifeBalance

14.7 EmployeeParticipation,EmpowermentandCommitment

14.8 Cross-cultural Training

14.9 LeveragingCulturalDiversity

14.10 KnowledgeLifeCycle

14.11 Summary

14.12 Keywords



Objectives


DefinethetermGlobalHRMzz

Understandthebasicresourceprocesszz

DiscussthemeaningandobjectivesofInternationalHRMzz

StatethesourcesofInternationallabourmarketzz

Explaintheconceptofstaffingpolicieszz

Unit 14: Global HRM

Notes


Introduction

GlobalHRMiscriticaltoorganisationalcompetitivenessandproductivityduetothegrowingdiversity of the world’s workforce and its increasing importance. The need to manage thisdiversitybetterhasbecomeamajorchallengetotheinternationalmanager.Theemergenceofwomenasamajorsourceofhumanresourcesforthecorporatesispartofthatdiversity.Ifaninternationalorganizationistosurviveintoday’scompetitiveenvironment,itmustsuccessfullymanage the increasing complexities of its human resources.Human resourcemanagement isalsogrowinginimportanceasmultinationalcorporationscontinuetorelocatetheiroperationstothosegeographicalareaswheretheycangetthemostfortheirhumanresourcecurrency.

Iflargecorporationsintendtoretaintheirdomesticoperationsandstillbecompetitivewithrespecttocostandquality,theywillhavetoimprovetheirhumanresourcemanagement.Employeesmustbeviewedasvaluableassets—resourcesthatarevitaltothesuccessfulperformanceoftheorganisation.Talentedpeoplemustbeattractedtojointheorganization,developedtoperformathighlevels,andencouragedtoremainwiththeorganizationwithloyaltyandcommitmenttotheorganizationanditsobjectives.

14.1 Objectives

Themajorunderlyingobjectiveofhumanresourceplanningistolaythefoundationfromwhichtheorganizationwillalwayshavetherightpeopleintherightplacestodotheworkrequiredby theorganization.Humanresourceplanning ispartof theoverall strategicplanningof theemployingorganizationandincludessuchfactorsas:(1)environmentalscanning;(2)businessand economic forecasting; (3) developing and maintaining a competitive advantage in themarketplace;(4)determininglong-rangetechnicalneeds.

Job analysis: is the systemic study of job requirements and those factors that influence theperformanceofthosejobrequirements.Typically,ajobanalysisisthefirststepinthestaffingprocessandisdesignedtoidentifywhoistodowhat,where,when,andhow.McCormick(1976)suggeststhatjobanalysisusuallyconcentrateson:

1. Work Activities: toidentifypreciselywhattasksaretobeaccomplished.

2. Performance Standards: to identify the expected output in terms of both quantity andquality.

3. Work Technologies: toidentifyappropriatemachine,tools,andotherjobtechnologies.

4. Job-related Tangible and Intangibles: toidentifytheknowledgetobeapplied,materialstobeprocessed,productstobemade,orperformancestobeperformedinthecourseofthework.

5. Job Context: to identify work conditions, social conditions, compensation, and workschedule.

6. Personal Requirements: to identify required skills, experience, education, training, andotherattributesrequiredforthejob.

Theaboveinformationmaybeobtainedbyobservingincumbentsonthe job,byinterviewingincumbents and/or their superiors, or through the administration of questionnaires. Theinformationcollectedthroughthejobanalysisisused,inturn,tocreateawrittenjobdescriptionandawrittenjobspecification.Thejobdescriptionusuallyisalistingofthejobduties,theworkingconditions,andthetools,materials,andequipmentusedtoperformthejob.Probablythemostimportantportionofthejobdescriptionisthelistingoftheminimumqualificationsneededtofillthejob.Thisunitissometimescalledthejobspecification,whichisalistofthequalificationsthatthepotentialapplicantmusthave.


Notes


14.2 Globalization

Globalizationinitstruesenseisawayofcorporatelifenecessitated,facilitatedandnourishedbythetrans-nationalizationoftheworldeconomyanddevelopedbycorporatestrategies.Globalizationis an attitude ofmindwhich views the entireworld as a singlemarket.Organizations haverealizedthatsurvivalisonlypossibleifthenecessarychangesarebroughtinattherighttime.Thesechangearehowevernotonlyconfinedtothechangesinproductionormarketingstrategiesbutalsoincludemostimportantlythechangeinhumanresourcemanagementpractices.AtFordMotorsCompany, “Managers try tomakedecisionson theglobal basis.Theyplan activities,handlemanufacturing andpurchasing globally. Ford approachesHR the sameway,movingemployeesfromanywheretoanywhereiftheyarethebestonestodothejob.”

It has now been clearly understood by the organization that human resource managementpracticesaremostimportantbecauseanychangeordevelopmentisforthepeopleandbythepeople.Thus, todaywhentheworld isknownasglobalvillage, there isrequirement fornewperspectiveofHRfunctionsbetterknownasglobalHRfunctions.Thisrequiresanappropriatemixofemployeesintermsofknowledge,skillsandculturaladaptabilitytohandletheglobalassignments.TherapidglobalizationhascompelledtoredefineandredesigntheHRpracticeandpoliciestoexploretheHRMimplicationsofglobalization.Beginningwiththelastdecadeofthe20thcentury,globalization,liberalizationandtechnologicaladvanceshavechangedthewaythebusiness is being done across the world and India has been no exception to this. Since HRM is the primemoverofhumanresourcesthroughwhichorganizationshavetoencounterthreatsusedbytheenvironment,itisfacinglotofchallengesinmanagingpeopleeffectively.

14.3 Functional Transformation of HR – From Support Function to Strategic Function

ThefutureofHRischallenging–verymobile,everchanging,moredynamic,actionorientedandinnovative.HR transformationchangesbothbehaviourandoutputs.TransformationrequiresintegratingthevariousHRpracticesandfocusingthemjointlyonvalue-addedagendasuchasintangibles,organizationandindividualcapabilities.

Earlier,HRfunctionintheorganizationwasconsideredtobethestafffunctions.However,theglobalshiftredefinedtherolesandfunctionsofHRandnowcallitasastrategicfunctionwhichensures that:

1. HRmanagementhastobefullyintegratedwiththestrategicneedofthefirm.

2. HR policies establish coherence between the policies and also across the hierarchies.

3. HRpracticesarewell-adjusted,acceptedandfollowedbylinemanagersandemployeesasapartoftheirroutineworks.

14.4 Global Perspective of HRM

Asit iswellobservedthat thesuccessofanyorganization liesuponthe typeofpeople, theirwillingness and their commitment towards the organization. In today’s scenario, whenour business is getting increasingly interlinked across nations, theHR person needs to giveinternationalorientation,whetherheorshedoesemployeerecruitment,traininganddevelopment,performancereview,motivationorindustrialrelations.

Did u know?GlobalHRMistheblendofthreedimensions:

1. HR Activities

Unit 14: Global HRM

Notes


2. TypesofEmployees

3. Countries of Operations

14.5 International HR Challenges

Withthechangingbusinessscenario,agreatneedisfeltthatHRpracticesoftheorganizationsneedtobereshapedandmouldedtogivethebusinessacompetitiveedge.

The major challenge, however, is to be people-centric rather being work-centric. Few HRchallenges,whichhavetakenthefrontseatandaretreatedasmostimportantfortheorganizationsurvival,growthanddevelopmentareasfollows:

14.5.1 Selectivity in Recruitment

Intheglobalperspective,thecompaniescantapfourbasicsourcesforpositions.

Sources of Recruitment

1. Home Country Nationals: Thesemanagersarecalledexpatriates,orexpats,whichreferstothose,wholiveandworkoutsidetheirhomecountries.However,accordingtoaresearchconducted by Beamish and Ink pen over 3,200 Japanese subsidiaries and itwas foundthat the percentage of expats has been exceedingly declining. The reasons were clearas it involvedhugecost tokeepexpatsandalso theeffectivenessof the localmanagersincreased,astheyweremorereliableandeffectiveingivingperformance.

2. Host Country Nationals: Toavoid theproblemofexpatriates,multinationalcompaniesoftenhireemployeesfromthesamenationwheretheybegintheiroperations.Theyarecalledhostcountrynationals.Theseindividualsarefamiliarwiththeculture,theyknowthelanguageandtheyarelessexpensivethanthehomecountry.

3. Third Country Nationals: The TCN individuals are focused because the organizationsbelievethat irrespectiveofanyfactor, theyarehiredontheprincipleof“theindividualwhowerethebestonesforthejob”,shouldbegiventhejobwhetherheisanexpatriate,thirdcountrynationalsorInpatriates.

4. Inpatriates: Inpatriate is an individual from a host country or a third countrywho isassignedtoworkinthehomecountry.

14.5.2 Staffing Strategy

The staffing strategies can be broadly divided into ethnocentric, polycentric and geocentricstrategies:

1. Ethnocentric approach: Underthisapproach,allthekeypositionsarefilledinbytheparentnation employees, later to introduce the single corporate culture throughout the globe.Thecompanyaftersome time,mightconduct the localpeople forbetterunderstandingformanagingmarket dynamics andmanagingpeople.Cieri,Dowling&Taylor (1991).Findingsaysthat50%ofrespondingfirmestimatedthattheaveragecostofexpatriateswasthreetofourtimesthatofanormalsalary.

2. Polycentric Approach: Under this approach, generally host countries nationals areemployed in the subsidingof theMNCs.Becauseof the reasonsof cultural familiarity,beginningcosteffectiveandalsolanguagefamiliarity.

3. Third Country Nationals: TCNsarethosewhoarecitizensofthecountriesotherthanthecountryinwhichtheMNCisheadquarteredortheoneinwhichtheyareasrequiredtoworkby theMNC.TheTCN individualsare focusedbecause theorganizationsbelieve


Notes


thatirrespectiveofanyfactor,“Theindividualswhowerethebestonesforthejob”shouldbegiven the job.Eitherhe is an expatriate, third countryNational or Inpatients.TCNsingeneraldemonstratedaglobalortransnationalimageandbringuniquecross-culturalskillstotherelationship.

4. Geocentric Approach: Thisapproachsubscribestheviewofemployingthebestpeopleinkeypositionsthroughouttheorganizationwithouttheconsiderationofanynationality.

5. Regiocentric Approach: This approach advocates the division of operations of the multinationalcompanyonthebasisofsomegeographicalregionsandallowsthetransferofemployeeswithinaparticularregion.Forexample,manycompanieshavetheregionaldivision like Europe, Africa, Asia Pacific and encourage the transfer of their seniormanagers.

!Caution Companyadopts aparticular strategy at aparticular timeor a combinationofstrategiesdependingontheneedoftheorganization.

Comparativeanalysesisnowbeingpresented:

Staffing Approach

Strategic Appropriateness

Advantages Disadvantages Comparison of Staffing Approaches

Ethnocentric International Overcomes lack of qualified managers in host nation Unified culture Helps transfer core competencies

Produces resentment in host country Can lead to cultural myopia

Polycentric Multidomestic Alleviates cultural myopia Inexpensive to implement

Limits career mobility Isolates headquarters from foreign subsidiaries

Geocentric Global and transnational

Uses human resources efficiently Helps build strong culture and informal management network

National immigration policies may limit implementation Expensive

Table 14.1: Comparative Analyses

Source: McGrawHill/IrvinInternationalBusiness.

Self Assessment

Fillintheblanks:

1. The.......................attitudeassumesthatlocalmanagersinhostcountriesknowbesthowtorun their own operations.

2. .......................isanentrystrategyinwhichafirmmaintainsitsproductionfacilitieswithinitshomecountryandtransfersitsproductsforsaleinforeignmarkets.

3. Theprocessofbringingexpatriateshomeiscalled.........................

4. .......................isthesystematicanalysisofjobrequirements.

Unit 14: Global HRM

Notes


5. Amultinationalcorporation isamorecomplexformthatusuallyhasfullyautonomousunits operating in ..............countries.

6. An..............istheemployeeworkinginaunitorplantwhoisnotacitizenofthecountryinwhichtheunitorplantislocatedbutisacitizenofthecountryinwhichtheorganisationisheadquartered.

7. Firmsoperatingininternationalmarketsface..............conditionsandcompetitions.

8. Businessisbecominga................globalarenaastradebarriersfall.

9. Routineinternaladvertisingallowsacompetitive................jobmarkettofunctionacrossnationalities,gendersandothercategories.

10. ..............maybedefinedastheprocessbywhichtheorganisationchoosefromamongtheapplicants,thosepeoplewhoareperceivedthebestmeetthejobrequirements.

14.5.3 Selection Criteria for International Assignments

With a global business view, the overseas assignments need to be handed tactfully and thisrequirestheeffectiveselectiondecisionofthemanpower.Theinternationalselectioncriteriaisinfluencedbyvariousfactorswhichareasfollows:

1. Ability to adapt: Thisistheindividualabilitytogetwiththepeople,cultureandthetypeofbusinessorganization.Anindividualmustbeabletosolvetheproblemswithindifferentframeworksandfromdifferentperspectives.

2. Combination of right age, experience and education: Anindividualapartfromtheabilitytoadaptneedtohaveanappropriatecombinationofage,relevantexperienceandshouldfulfillthebasiceligibilitycriteriaifplanningtohandletheglobalassignment.Arightmixofage,experienceandeducationwouldfacilitatetheindividualsforbetterhandlingofjobandtakeprogressiveanddevelopmentalefforts.

3. Language training: English is the international language and primarily important forthe internationalbusiness.Mostpeople can converse inEnglishnow.However,duringbusinessinnon-Englishspeakingcountriesmightposeproblems,sotheindividualneedstobefamiliarorcomfortablewiththelanguageofthecountrywherethebusinessoperationwould be executed.

4. Spouse and family liability: Spouseofthedependantsareanotherimportantconsiderationwhenaperson is tobe chosen for anoverseasassignment.Byusing theprocess calledadaptabilityscreening,withwhichitisevaluatedhowwellthefamilyisfittowithstandtheregionsandstressofoverseaslife,thenewlimit,cultureetc.

5. Leadership ability: Anothermajor challenge is in termsof the leadership ability of theindividual. The global leader is the one effective leader both in the home country andequallygoodonoverseasassignment.Arightmixofemotional stability,drives to takeinitiatives,maturityetc.arefewimportantcharacteristicswhichaglobalmanagershouldpossess.

Thus,we conclude that a selection criterion is important, basedon the individual’s ability toadjust.

14.5.4 Cultural Integration

Thetermculturalintegrationmeanstheprocessofoneculturegainingideas,technologiesandproducts of another and so thismeans that this culturewill seem to be integrating into theother.


Notes


Cultural integrationisdifficult todefinebecauseit ismadeupofmanyconcepts.Theideaofamulticulturalsocietyreflectscultural integrationatwork;sotoodoestheideaofthe‘globalvillage’,where,throughtechnologyandtrade,aseeminglyborderlessworldiscreated.

Cultural integrationalsoconcernstheadoptionofamassconsumerculturewhereeverythingfromfashion to sport,music to television,becomes integrated into thenational culture,oftenwithoutchallenge.Whilethismaybeseenbysomeasapositivesteptowardsunifyingtheworld,toothers,culturalintegrationisseenasathreattonationalsovereigntyandculturaldiversity.Geographically,whereapersonlivesintheworldoftendetermineswhatpart,ifany,heorshecanplayinthisglobalizationprocess.

Culturalintegrationisoneofthemajorproblems,whichhascontributedtothepracticeofmergerssuchas,thoseofNissanandRenaultandDaimlerChrysler.Culturesattheworkplacessteadilyareassumingsomeamountofuniformityforcrystallizingofa‘globalworkculture’.

Differentorganizationshavedifferentwaysofdealingwith thisandthemostcommonis thecross-culturaltraining.Indianorganizationsarerelyingonthis.

Forexample,‘withTCS’–thebiggestchallengeistointegrateaglobalworkforceintoasinglecorporateculture.ThecompanyhasstartedrecruitingforeignnationalsespeciallyfromtheU.S,Australia,astheneedforaunifiedtrainingisincreasing.

14.5.5 Managing Workforce Diversity

Withthecomingupofmultinationals,theorganizationsareacomplexwebofindividualshavingdifferenceinculture,age,gender,race,education,ethicsandmoralvalues.Thesedifferencesarenotonlypresentintheworkculturebutalsointheiradaptabilityinmeetingglobalchanges.Thediversifiedcompositionencouragescreativityandbettersolutionstocomplexbusinessdecisionsbutposesproblemsinunderstandinghumanbehavioureffectively.

14.5.6 Employee Information Sharing

Intoday’sperspective,theemployeeshouldbewell-informedabouttheorganizationalpolicies,plansandstrategiesasitgeneratesafeelingoftrustandconfidenceamongemployeesandhelpsthe organization to achieve the competitive advantage. A well-informed workforce is moreparticipativeandpossesseshighdegreeofcommitmentandinvolvement.

However,thistrustisbuiltwhenmanagementhasthecredibility,whichisafactorofintegrity.Better communication and information sharing help building a strong relationship betweenemployerandemployeeandmakeacompanybetterplacetowork.

1. Manyorganizationshavesomeformsofemployernewsletters.Forexample,JWMarriotthasanewsletterpublishedbyhumanresourcedaily,whichisreadouttoalltheassociatesatthecommencementoftheshifts.

2. AtIntel,aprogrammecalled“TheRighttoKnow”programmeprovidesafacilitytotheemployer toanonymouslyaskanybusiness relatedquestionsabout Intel and receiveapromptanswer.

3. Fred Smith, FedEx CEO holds online broadcast and open phone lines to employees’unscreenedquestions.

14.5.7 Talent Management Strategies

Another importantSHRMfunction isbuildingofstrongtalentmanagement team,whichwilladoptthedesignanddevelopmentprogrammesthatresonatewiththecurrentstateofcompany’stechnologicalneeds.Learningisakeycomponentineffectivetalentmanagementasitdevelops

Unit 14: Global HRM

Notes


the senseof careerdevelopment,whichwillhave themost success in retaininga skilledandqualifiedworkforce.

14.5.8 International Compensation Management

Whenafirmdevelopsinternationalcompensationpolicy,ittriestofulfillsomebroadobjective:

1. Equalizepayonaglobalbasis.

2. Should be in line with the structure, business needs and overall strategy of theorganization.

3. Attracting and retaining the best talent.

Majorcomponentsofinternationalcompensationpackage:

1. Basicsalary

2. Foreignservicesinducementpremium

3. Allowances

4. Benefits

5. Long-termincentives

6. Taxesincludesequalizationandtaxprotection.

Figure 14.1: National Difference in CEO Pay for Midsize Companies


14.5.9 Approaches to International Compensation

1. Balance sheet approach: Reynolds(1986),explainedthisapproachasasystemdesignedtoequalizethepurchasingpowerofemployeestomeettheinternationalstandardsandtomaintainsamestandardoflivingacrosscountries.

2. Market Rate approach: Thebasesalaryislinkedtothestructureinthehostcountryandtomeetthehostcountries’compensationstandards.


Notes


Table 14.2: Compensation for Four Positions in 26 Countries


Self Assessment


11. Thehomecountryistheplacewheretheexpatriateisworking.

12. A global corporation operates in various countries but each foreign business unit is operated separately.

13. Businessprinciplesandvaluescanbesuccessfullyappliedanywhereintheworld.

14. Eveninglobaloperations,theHRfunctiontendstobehighlycentralised.

15. Expatriates often lose touch with their organisations.

16. Global activities add a whole new set of often-unforeseen challenges to the HR function.

14.6 Work Life Balance

Worklifebalanceandjoyatworkareimportantvaluepropositionsinthecurrentworkscenario.Theconceptofzippedcareerisrapidlygainingplace,aspeoplewanttobecomerichveryfast.Peoplearebecomingveryconsciousaboutthepersonalspacetheyneedforthemselvesandtheyarelookingforjobsthatgivethemspaceandtimefortheirhobbies,communityworkorsportsetc. To turn theworkforce frommonotony to creativity, globalHRmanagers need to createinnovativeworkpatternsandpracticesthatcanaccommodatetheaspirationsoftheemployees.Surveyshaveshownthatworklifebalanceisamajorissueinaglobaleconomy.Rapidtechnologychanges,workingcouplesetc. surmountssocietalpressures.Manyorganizationshavestartedlookingitasanoption.Thiscanbedoneintwoways.Onewayistoallowtheflexibletimings.Thesecondwayiswhereanemployeedoesnotworkforfixednumberofyearsbuttakesupinterestingassignmentsinhisorherareaofspecialization,asandwhentheyareavailable.

Unit 14: Global HRM

Notes


In practice, most employers give employees only limited freedom regarding the hours theywork. Flexi time, is usuallymore successful with clerical, professional andmanagerial jobs.Thisprovidesmoretimetotheemployeesforfamily.Manyemployees,likeairlinepilots,goforcompressedworkweeks.Somefirmshavefour-dayworkweeks,withfour10-hoursdays.Abouthalfof500employersinonerecentsurveysaidtheynowuse12-hourshiftsformanyoftheiremployees.

Task Identifythekeyissuesandchallengesfacingmultinationalsindevelopingacadreofglobalmanagers.

14.7 Employee Participation, Empowerment and Commitment

Anewwork ethic has emergedwhere the focus is on doing thework that is enjoyable andmeaningfultodo.Thereisnowgreaterdemandforprivacy,autonomyandflexibility.Theneedisgreater transparencyandopennessaround thebusinesspolicies, including those related toemployeesanenvironmentfostering.

Effective teamwork, a culture of innovation and creativity is yet another challenge faced byIndianorganizationstoday.

Neither the Indian education system nor culture fosters and encourages creativity, and so,evidently,Indiahashadveryfewpioneeringconceptsorproductsandservices.

However,organizationsarenowtaking iton themselves toprovideanenvironment that cansowtheseedofinnovationandcreativityintheworklifeofitsemployees.And,inthecontextofglobalizationandmobilityofitsworkforce,whereIndianemployeeshavetoworktogetherincultureswhereinnovationandcreativityareagiven,thisaspectdoesassumeagreatdealofsignificance.

Dr.EdwarddeBono’sSixThinkingHats,’atoolwherebyindividualsandteamslearntoseparatethinkingintosixcategoriesforanalyzingissues,generatingnewideas,andrevolutionizedhowcreativitycanbefosteredincompaniesandIndianorganizationsarerelyingonthisandothersuchcreativitytoolsthatareavailable.

Although Indianorganizationshavea longway togo in thisarea, thismarksabeginningoftakingcreativityseriously.

14.8 Cross-cultural Training

Theglobalreconfigurationofbusinesseshasresultedinchangesintrainingneeds.MultinationalsrequirethedeliveryofHRDtrainingthatiscost-effective,flexibleandculturallyrelevant.Trainingneeds to be delivered in different time zones and in dramatically different cultural contexts.Onlinelearning,ore-learning,seemsanobviouschoicetodeliverthistypeoflearning.However,whileonline learning isefficientandconvenient, itdoesnotsatisfyall trainingneeds. Itmayfailtoadequatelydevelopthesociallearningcommunitiesthatworkteamsneedtoinitiateandsustain effective learning.

Many programmes equip employees with the basics of the host country’s history, politics,businessnorms,educationsystem,anddemographics;theculturalvalues,communication,andhowtofunctioninaforeigncountry.But,dothesecross-culturaltrainingprogrammesadequatelypreparetheemployeestooperateintheforeignenvironment?Theneedtodevelopcross-culturalskillsinexpatriatesisevengreaterwherethegapbetweenculturesisveryimportant(Forster,2000).


Notes


Expatriateemployeesthatareunpreparedtomeetthechallengesinaforeigncountryoftenfailtheirmission and this is costly to anyorganization.Therefore, it is imperative to adequatelytrainexpatriatestoperformwellinoverseesassignments;notonlydoesthisdrawbenefitstothecompany,italsohelpsthemoraleoftheemployees.

Some expatriates succeed in their overseas assignments, others encounter failure. Expatriatefailure results in costly consequence (Bennet et al, 2000).Researchhas identified that havingaccurateexpectations,positivelyaffectscross-culturaladjustment(Caligiuri,etal,2001).Adequatetrainingalsoreducesassignmentfailure(Marquards&Engel,1993).Accordingtoresearch;only30%oftheU.S.multinationalcompaniesprovidedtheiremployeeswithcross-culturaltraining(Bhagat&Prien,1996;Black,1988;Deshpande&Viswesvaran,1992).Onereasonisthatthebodyof knowledge in cross-cultural traininghasnot been able to impact thefieldmainly becauseresearchershavenotagreedyetontheimplementationoftheirfindings(Brewster,1995;Selmer,Torbiörn,&deLeon,1998;Selmer,2001).Litterelletal,(2006)unveiledarichreviewofliteratureoverthepast25yearsonexpatriatepreparation.

14.9 Leveraging Cultural Diversity

Cultural Integration

Nodiscussiononglobalizationandglobalmobilityiscompletewithoutmentioningthechallengesfacedbyorganizationsasa resultofdifferent socialandworkcultures.Whileculturesat theworkplacesteadilyareassumingsomeamountofuniformity,asseen in thecrystallizingofa‘globalwork culture’, thebehaviourpatterns largelygovernedby the socio-economic cultureplayarolethatcannotbeignored.

WeseethatanaverageIndianisfocusedprimarilyonworkaloneandmaynothaveanactiveinterestinanysupportorform.

Discussionswithhisorher fellowcolleagues fromother culturesareprimarilywork-related,andhisorherdispositionwiththecustomerandclient ismoreofbenevolencethananequalstanding.

Differentorganizationshavedifferentwaysofdealingwiththis,themostcommonbeingcross-culturaltraining.Indianorganizationsarerelyingonthis,andalsoinvestingheavilyonthisbycallingonseveralcross-culturaltrainingexpertsandorientingitsemployeesfromtheverybasicstotheextremelysublimeaspectsofculture.

Notes KnowledgeManagement

Changing business complexities, have compelled the organizations to be proactive,targetedand focused.TheHRMprocess adopts an innovationpolicyaimedatdrivingtheorganization.Establishingacultureofinnovationsrequiresthesupportoftherangeof initiatives:

1. Knowledge research centre

2. Knowledgeandtechnologydiffusion

3. Awarenessandpromotionknowledge

Successful knowledge-based management organization and knowledge managementprojects must be multidisciplinary in terms of bringing together technology, culture,economicsandpoliticsinacombinationthatenablesflexibilityindealingwithwhatever

Contd…

Unit 14: Global HRM

Notes


project and objective. The knowledge management cycle in organizations consists ofKnowledgeAssessment,KnowledgeAcquisition,Knowledgedevelopment,KnowledgeSharing,KnowledgeutilizationandKnowledgeretention.

14.10 Knowledge Life Cycle

Knowledgecapitalmaynothavepreciselythesamedefinitionineveryorganization,everydivision,every department, every function or everywork unit. The key to understanding knowledgecapitalunderstandswhatmakesanorganizationcompetitivethatisitscorecompetenceandthecollectiveknowledge,talentandmarketabilityofthepeopleworkingintheorganization.Sothedefinitionofknowledgecapitalvariesbythenatureofthebusinessandthecollectiveknowledge,experienceandcreativityoftheindividualswhomakethebusinessoperate.

Use and leverage knowledge

To act intelligently for success and viability

Deploy knowledge

To improve processes,

products and services

Capture and store knowledge

To reuse and build

upon it, and to leverage it in other ways

Organize and transform knowledge

To make it broadly available and to embed it

Create new knowledge: learn, innovate and

research

Using prior knowledge and imports

Figure 14.2 : The Knowledge Life Cycle

Source: KnowledgeResearchInstitute,quotedinBusinessToday,May,7-21,1999,p.86.

UnderstandingoftheknowledgelifecycleandformulationoftheHRstrategiesbasedontheknowledgemanagementgivestherightsolutionsformanagingtheglobalHRchallenges.Itisdepictedwiththehelpofamodelbelow:

Developing Strategies for Building Knowledge Capital Experiences and Assignments inSuccession Planning: Development experiences are competencies required for success of theorganizationwithastrategy.PeterDrucker(1992)emphasizedthatwayofeducatingpeopleisthisviewthewhole,ofcourse,isthroughworkincross-functionaltaskforces.Therealchallengeliesinthebuildingonexperienceandleverageknowledgequicklyandwidelythroughouttheorganization.

TheroleofHRfunctiongoeswellbeyondvaluerecognition.Forknowledgecapitaltoaddvaluetoorganizations,keypeopleshouldbeidentified,andmadetotransfertheinformationtoothers,use it inHR strategic planning processes and to spark innovation and creativity among theworkforce.


Notes


Culture

and People

Organization Development

Process

Infrastructure

and Facilities

Intellectual

Assets

Knowledge Management Strategy

Business Strategy

Figure 14.3: Developing Strategies for Building Knowledge Capital

Thus,knowledgemanagementoffersanewoutlooktotheHRfunctionstostreamlineandfacethechallengesintheglobalscenario.Proactive,knowledgebasedmanagementorganizationsareakeytosuccess.

Case Study Happy to be Going Home

USfamily,fromthemid-west,waspostedtoMelbourne,Australia.Theexpatriate’srolewastoassisttheAustraliansubsidiaryimproveitsqualitycontrolandsupplierrelationships.Chuckwasplacedinchargeofthepurchasingdepartment.After12

months,hehadsuccessfullyestablishedgoodlinkswith thecompany’skeycomponentsuppliersandwasintheprocessofarrangingjointcompanyqualitytrainingprogrammeswiththesesupplierstoensurethenewly-instigatedjust-in-timeinventoryprocedurewasonasoundfooting.Chuckwasenjoyinghisnewrole.Meanwhile,his10-year-olddaughterwasfindingitdifficulttomakefriendsintheexpensiveprivateschoolthecompanyhadarrangedforhertoattend.HiswifewasalsofindinglifeinAustraliasomewhathardtocopewith. “On the surface, it seems somuch likehome, butAustralians are not at allthesameasusAmericans,andsomepeoplemakedisparagingremarksaboutus.Theyusetermssuchas‘Yanks’.Imissnotbeingabletofindfamiliarthings,suchasbrowniemix,inthesupermarket.”BothwifeanddaughterwereveryhappywhencircumstancesprovideanacceptablereasonforanearlyendtoChuck’sassignment.Hiselderlymothersufferedabadfall,andtherewerenootherfamilymemberstotakecareofher.Thefamilywasrepatriatedafter14monthsintoa3-yearsassignment.Theexpatriatewasreplacedbyanother PCN.

Questions

1. WhenChuckwasenjoyinghisassignment?

2. WhywashisfamilyunhappytostayinAustralia?

Unit 14: Global HRM

Notes


14.11 Summary

When staffing overseas positions, the multinational corporation (MNC) has threezz

majoroptions: (1) anethnocentric staffingapproach, employinghost countrynationals; (2)apolycentricstaffingapproach,employinghomecountrynationals;and(3)ageocentricstaffingapproach,employingthirdcountrynationals.

Hostcountrynationalscomprisethelocalworkforcethatcanbehiredbytheinternationalzz

firm.

Homecountrynationalsarethosefromthecorporation’shomecountry.zz

Thirdcountrynationalsarecitizensfromnationsotherthanthehostcountrynationalsinzz

developed countries.

Themajorunderlyingobjectiveofhumanresourceplanningistolaythefoundationfromzz

whichtheorganizationwillalwayshavetherightpeopleintherightplacestodotheworkrequiredbytheorganization.

Humanresourceforecastingistheprocessbywhichanorganizationestimatesitsfuturezz

humanresourceneeds.

Once an organizationhas estimated its futuredemand and supply of human resource,zz

thenextstepinthestaffingprocessistomatchthetwoforecasttoidentifyareasoffutureoverstaffingandareasoffuturemanpowershortages.

Inordertobecertaintherecruitmentprocessfollowsprescribedguidelines;organizationszz

mayestablishrecruitment;policies.

Recruitmentcanbecategorizedintotwotypes:(1)externalrecruitment;and(2)internalzz

recruitment.

Onetechniqueoftherecruitmentprocessisknownastherealisticjobpreview(RJP),byzz

whicheverycandidateisgivenallthepertinentandrealisticinformationaboutboththejobandorganization.

Idealselectionidentifiesthebestfitbetweenthepersonandthejob.Therearesevenbasiczz

factors in the selection process: (1) application forms; (2) interviewing; (3) assessmentcenters; (4) employment testing; (5) reference checks; (6) physical examinations; and (7) selection validation.

TherearethreebasicsourcestheMNCscantapforoverseaspositions:(1)homeorparentzz

countrynationals(PCNs);(2)hostcountrynationals(HCNs);and(3)thirdcountrynationals(TCNs).

The four approaches to multinational staffing decisions—ethnocentric, polycentric,zz

geocentric, and regiocentric—tend to reflect the managerial philosophy towardsinternationaloperationsheldbytopmanagementatheadquarters.

14.12 Keywords

Ethnocentric Approach: Under this approach, all thekeypositionsarefilled inby theparentnationemployees,latertointroducethesinglecorporateculturethroughouttheglobe.

Expatriates, or Expats: Expatriates,orexpats,whichreferstothose,wholiveandworkoutsidetheirhomecountries.

Geocentric Approach: Thisapproachsubscribestheviewofemployingthebestpeople inkeypositionsthroughouttheorganizationwithouttheconsiderationofanynationality.


Notes


Globalization: Globalization is an attitudeofmindwhichviews the entireworld as a singlemarket.

Host Country Nationals: Toavoid theproblemofexpatriates,multinationalcompaniesoftenhireemployees fromthesamenationwhere theybegin theiroperations.Theyarecalledhostcountrynationals.

Human Resource Forecasting: Theprocessbywhichanorganisationestimatesitsfuturehumanresource needs.

Human Resource Planning: Theprocessofgettingtherightnumberofqualifiedpeopleintotherightjobattherighttime,sothatanorganisationcanmeetitsobjectives.

Inpatriates: Inpatriateisanindividualfromahostcountryorathirdcountrywhoisassignedtoworkinthehomecountry.

Job Analysis: Itisthesystematicstudyofjobrequirementsandthosefactorsthatinfluencetheperformanceofthosejobrequirements.

Polycentric Approach: Underthisapproach,generallyhostcountriesnationalsareemployedinthe subsiding of the MNCs.

Realistic Job Preview: Arecruitmenttechniquebywhicheverycandidateisgivenallthepertinentandrealisticinformationaboutboththejobandorganisation.

Recruitment: Theprocessbywhichanorganisationattractspeopletoapplyfortheirjobopenings.

Regiocentric Approach: Thisapproachadvocatesthedivisionofoperationsofthemultinationalcompanyonthebasisofsomegeographicalregionsandallowsthetransferofemployeeswithina particular region.

Selection: Theprocessbywhichtheorganisationchoosefromamongtheapplicants,thosepeoplewhoareperceivedthebestmeetthejobrequirements.

Third Country Nationals: TCNsarethosewhoarecitizensofthecountriesotherthanthecountryinwhichtheMNCisheadquarteredortheoneinwhichtheyareasrequiredtoworkbytheMNC.


1. DefinethetermGlobalHRM.

2. Explainthemeaningandimpactofglobalization.

3. Discuss the concept of HRP.

4. WhatisthesignificanceofHRforecasting?

5. DiscussSelectionCriteriaforInternationalAssignments.

6. What steps are needed to attract an effectiveworkforce for anMNC?How should anorganisationdevelopaneffectiveworkforce?

7. WhatarethesourcesofanMNCcantapforitsoverseasposition?

8. WhataretheapproachestoMultinationals’staffingdecisions?

9. What are the factors involved in expatriate selection, both in terms of individual andspecificsofsituation?

10. Whatisculturalintegration?

11. Stateandexplaintheconceptofknowledgemanagement.

12. Discussthevariousapproachestointernationalcompensation.

Unit 14: Global HRM

Notes



1. Polycentric 2. Export

3. Repatriation 4. Jobanalysis

5. multiple 6. expatriate

7. different 8. unified

9. internal 10. Selection

11. False 12. True

13. False 14. False

15. True 16. True










Online links http://www.adpstreamline.com/global-hr-human-resource-management

http://www.scribd.com/doc/10521466/Global-Human-Resource-Management-Chapter-18

http://forumonpublicpolicy.com/summer08papers/archivesummer08/palthe.pdf

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