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Human Resource Management

Q.1 Trace the phases of evolution of human resource management.

The historical background to the management techniques of human resources are invogue since ancient times. Its only in the past 100 odd years that the techniques and

study of human behaviour at work has become formal and structured with certain basicpractices established as core and a host of other practices left to each organization to

design and implement as per their individual business driven practices. As per Fisher,Schonfeldt and Shaw, in their book titled Human Resources Management, they have

characterised the history of HRM as having evolved through four broad phases, the Craftsystem, the scientific system, the human relations approach and the prevalent

organizational science-human resources approach.

The Craft system refers to early trends noticed in Egypt and Babylon, where skills based

training was provided to people to ensure a steady flow of craftsmen required to buildhuge monuments. By the 13

thcentury, subsequently the trend was noticed in Europe and

later craft guilds evolved to ensure not only the skill acquisition but regulate theconditions of employment, level of skill and improved production techniques. Most

relevant in the domestic industry where generations of skilled workers trained andbecame experts in a particular skill.

The Scientific Management approach was a key part of the industrial revolution typicalof the nineteenth and early twentieth century. It was instilled in the principles of massproduction and organization of work simple work skills and supervisory/managerial

skills. This rapidly emerged as the assembly line approach to managing workflow, whichlater Fredrick Taylor (1856-1915) pioneered based on the philosophy that employees

wanted to be used efficiently and money being the primary motivator. Over a period oftime this was proved wrong as employee dissent grew and union issues surfaced. It was

during this phase that employee welfare as a key HR practice emerged which redressedemployee issues like recreational facilities, medical program and employee grievance

systems.

The Human Relations approach was an outcome of the famous studies undertaken byUS social scientist Elton Mayo and Fritz Roethlisberger at the Western ElectricsHawthorne plant in Chicago.

The Hawthorne Studies: As described in virtually every book written about management,

the human relations or behavioral school of management began in 1927 with a group ofstudies conducted at the Hawthorne plant of Western Electric, an AT&T subsidiary.

Curiously, these studies were prompted by an experiment carried out by the companys

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engineers between 1924 and 1932. Following the scientific management tradition, theseengineers were applying research methods to answer job-related problems.

Two groups were studied to determine the effects of different levels of illumination on

worker performance. One group received increased illumination, while the other did not.

A preliminary finding was that, when illumination was increased, the level ofperformance also increased. Surprisingly to the engineers, productivity also increasedwhen the level of illumination was decreased almost to moonlight levels. One

interpretation made of these results was that the employees involved in the experimentenjoyed being the centre of attention; they reacted positively because management cared

about them. The reason for the increase in the production was not the physical but thepsychological impact of the employees attitude towards the job and towards the

company. Such a phenomenon taking place in any research setting is now called theHawthorne effect.

As a result of these preliminary investigations, a team of researchers headed by Elton

Mayo and F.J. Roethlisberger from Harvard conducted a lengthy series of experimentsextending over a six year period. The conclusions they reached served as the bedrock of

later developments in the human relations approach to management. Among their keyfindings were the following:

Economic incentives are less potent than generally believed ininfluencing employees to achieve high levels of output.

Leadership practices and work-group pressures profoundly influence employee

satisfaction and performance.

Any factor influencing employee behaviour is embedded in a socialsystem. For instance, to understand the impact of pay on performance, you also have to

understand the climate that exists in the work group and the leadership style of thesuperior.

Leadership Style and Practices: As a consequence of the Hawthorne Studies, workerattitudes, morale, and group influences became a concern of researchers. A notable

development of the nature occurred shortly after World War II at the University ofMichigan. A group of social scientists formed an organization, later to be called the

Institute for Social Research, to study those principles of leadership that were associatedwith highest productivity.

Finally the Organizational Sciences approach to human resources management has

brought the focus to the scientific process within organizations that can impact employeeexperience, and less on just the individual. Todays organizations focus on building theirprocesses and policies and compete to emerge as preferred employers (best employer).

It is not uncommon for competing organizations to woo the employees through

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advertising more and better employee-friendly initiatives like work-from-home jobs,careers for married couples, global work assignments and internal job postings and world

class workplace infrastructures from in-campus cricket grounds to gymnasiums foremployee wellbeing. This is the HR that we now see around us.

Q.2 Explain the various techniques and methods used in selecting

employees.

There is no shortcut to fair and accurate evaluation of a candidate. As mentioned earlier,the hiring procedures are therefore, generally long and multiple. Organizations are

constantly evaluating the selections tools they use to hire and keep innovating to ensurethey hire quality candidates.

The following are popular methods commonly used:

1 Initial or preliminary interview

2 Application blank or blanks.

3 Check of references.

4 Skill / Psychological tests.

5 Employment interview

6 Approval by the manager.

7 Medical examinations.

8 Induction or orientation.

1. Preliminary Interview: The more non-selective the recruitment program, the more

likely it is that a preliminary interview will be required. This initial interview is usuallyquite short and has as its object the elimination of the obviously unqualified. In manyinstances it is a over-telephone / short face-to-face interview conducted at a desk. The

facts and impressions collected are of the type generally obtained in an initial interview.Many firms do not bother to initiate any paperwork at this early stage. If the applicant

appears to have some chance of qualifying for existing job openings, he or she is giventhe application blank to complete.

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2 Application Blank: An application blank is a traditional, widely accepted template forgetting information from a prospective applicant. This enables the recruiter to qualify the

candidate to the next level in the selection process and is used extensively subsequently

during the selection process. The blank aids in the interview by indicating areas ofinterest and discussion. It is a good means of quickly collecting verifiable basic historicaldata from the candidate. It also is a excellent document to share with the manager and

with the interviewers and is a useful device for storing information for, later reference.These templates generally carry information on biographical data, educational attainment,

work experience, salary, personal items, and other items such as names and addresses ofprevious employers, references etc.

3 Check of References: The use of references is common in most selection procedures.

It involves minimum of effort and time/money. The objective is to obtain evaluation ofprior employers and professional colleagues, who have known the candidate in aprofessional capacity. Checks on references are made by mail or telephone, and

occasionally in person, and by using a reference form.

4 Skill & Psychological Tests: The next step in the procedures outlined above is that oftesting. The use of tests is common and most popular in the lower levels in an

organization. It serves as a excellent qualifying criteria and in jobs that are dependent ona skill or a specific competency it is very useful. The objectivity of the test results make it

especially popular and a fair assessment of the individual.

Most organizations do not use psychological tests. However, there is a direct relationship

between the size and firm and the use of such tests in hiring. Most of the largercompanies that can afford to have a more detailed and accurate selection procedure do

utilize some form of employment testing. It is the smaller company that frequently doesnot bother with tests, but places greater reliance upon the interview.

5 Interviewing: Interviewing is probably the most widely used single method of

selection. A substantial amount of subjectivity, and therefore, unreliability, is to beexpected from interviewing when used as a tool of evaluation.

The interview consists of interaction between interviewer and applicant. If handledproperly, it can be a powerful technique in achieving accurate information and getting

access to material otherwise unavailable. Organizations aware of the challenges of usinginterviews have come up with a variety of ways to overcome the subjectivity. The use of

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multiple rounds of interview (even up to 8-10 rounds) and use of panel interviews aresome common work-around.

Four kinds of interviews for selection have been identified. These are:

1.Preliminary interview:

These interviews are preliminary screening of applicants todecide whether a more detailed interview will be worthwhile. The applicant is given jobdetails during the interview to afford him freedom to decide whether the job will suit him.

This method saves the companys time and money.

2.Stress interview: Stress interviews are deliberate attempts to create pressure to observe

how an applicant performs under stress. Methods used to induce stress range fromfrequent interruptions and criticism of an applicants opinion, to keeping silent for an

extended period of time. The most important advantage of the stress interview is that

helps to demonstrate important personality characteristics which would be difficult toobserve in tension-free situations. However, stress-inducing must be done carefully bytrained and skilled interviewers.

3.Depth interview: Depth interviews cover the complete life history of the applicant andinclude such areas as the candidates work experience, academic qualifications, health

interest, and hobbies. It is an excellent method for executive selection, performed byqualified human resources.

4.Patterned interview: Patterned interviews are a combination of direct and indirect

questioning of the applicant. The interviewer has certain clues and guidelines to areaswhich should be probed deeply and the interview also encourages the candidate to

express the relevant information freely.

After the patterned interview is complete, the interviewer should evaluate the candidate

on the basis of practical experience. According to R.N. McCurry and others, certainfactors lead to accurate predictions of the candidates suitability for a particular position.

The factors are: (1) basic character traits, (2) motivation, and (3) emotional maturity. One

advantage of a patterned interview is that systematic and chronological information isobtained, and hence this yields to statistical analysis.

6. Approval by the Manager: Following the outlined procedure, we should now be ofthe opinion that a candidate who has successfully completed all steps so far should be

hired. In executing the recruitment unit screening functions, the emphasis tends to bemore on formal qualifications and general suitability. When the manager takes over, the

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emphasis tends to switch toward more specifically job oriented worker characteristicssuch as training and relevant past experience.

7. Medical Examination

: The medical examination is an employment step found inmost businesses. It can vary from a very comprehensive examination and matching of an

applicants physical capabilities to job requirements to a simple check of general physical

appearance and well-being. In the selection procedure the physical examination has atleast three basic objectives. First, it serves to ascertain the applicants physical

capabilities.

The second objective of the examination is to protect the company against unwarranted

claims under workers compensation laws, or against lawsuits for damages. And the finalobjective is to prevent communicable diseases from entering the organization.

8 Induction: Induction is concerned with introducing or orienting a new employee to the

organization. Organizations could have induction programs of duration of1-3 days and even up to 1/3/6 months. Common objectives of an Induction program can

be listed as covering:

1. Overview of the organization, its history, its heros and important stories in the life of

the firm so far like mergers, acquisitions, JVs, expansion in new countries etc

2. Organization Vision / Mission and Objectives statement, its structure, hierarchy of the

top and the senior management, structure of the teams/divisions, focus on the division theemployee/s is/are joining

3. Overview of the HR policies and processes and introduction to the Facilities team, ITteam and other relevant teams per the location of joining.

4. Handover to the manager and induction at a team level on specificities related to thejob and its responsibilities.

Organizations also build processes by which the new employee provides feedback on the

on boarding experience and use this information to improve the Induction process. In as

much as various firms report that over half of their voluntary resignations occur withinthe first 6 months, proper orientation can do much to reduce this problem and itsaccompanying costs.

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Q.3 A company is being set up by a group of 3 professionals. The

business objective is to sell mobile phones of a Chinese company which

has come up with an inexpensive range of handset ranging from Rs.1200

to Rs.7000. They need to submit a human resource plan to their

investors. Explain the process of Human Resource Planning system for

this company, which covers all important steps needed for HRP.

Human resource or manpower planning is 'the process by which a management

determines how an organization should move from its current manpower position to its

desired manpower position. Through planning, a management strives to have the right

number and the right kind of people at the right places, at the right time, to do things

which result in both the organization and the individual receiving the maximum long-

range benefit".

Human Resource planning is the predetermination of the future course of actioin chosenfrom a number of alternatives.

HR planning is the processes including forecasting, developing and controlling by whicha firm course that it has the right number of people and right kind of people at the right

places at the right time doing work for which they are economically most useful.The characteristic of according to this company is that (HRP): They are:

1. Human resource plan most incorporate the human resource needs in the light oforganisational goals.

2. H.R. plan must be directed towards well defined objectives3. H.R.P must ensure that it has the right number of people and the the right kind of

people at the right time, doing work for which they are economically most useful.

4. H.R.P should have the way for an effective motivational process.5. A human resource plan should take into account the principle of periodical

reconsideration of new development and extending the plan to cover the chargesduring the given long period.

HR planning is a highly important and useful activity without clear cut planning, an

estimation of the organsations human resource needs is reduced to more success work.1. Planning defines future manpower needs and this becomes the basis or recreating

and developing personal

2. Employees can be trained, motivated and developed in advance and this helps inmeeting future needs for high quality employee

3. change in technology has attached more importance to knowledge and skillsresulting in surplus manpower in some areas and shortage in other areas. HR

planning helps in creating balance in such a situation.

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4. Jobs are becoming more and more knowledge oriented. This has resulted in achanged profile of H.R because of increased emphasis on knowledge, recruitment

costs have also increased.

Human Resource Planning is not only done by organizations and corporate bodies. It is aprevalent practice at different levels:

i) At the countrys national level, it is generally done by the Government and coversitems like population projections, programme for economic development, basic and

advanced educational infrastructure and opportunities, occupational distribution acrossurban and rural areas, industrial and geographical mobility of employable people.

ii) At the state level, it may be done by the state government and would includemanpower planning for the needs of the agricultural, industrial and service sector.

iii)A

t the specific industry level, it would include manpower needs forecast for specificindustries, such as engineering, heavy industries, consumer goods industries, publicutility industries, etc.

iv) At the level of the individual organization/ unit, it would relate to the planning of

manpower needs for each department and for various types of personnel.

Human Resource Planning System

The steps in the HRP process is a systematic set of activities carried out in achronological manner. Each step needs to be evaluated and debated with all possibleinformation gathered from the external as well as internal environment.

A. Purpose of Human Resource Planning: Human Resource Planning fulfils individual aswell as organizational goals. What it essentially amounts to is striking a balance

between the future human resources needs and the future enterprise needs. And this isdone with the clear objective of maximizing the future return on investment in human

resources. And this objective may be laid down for a short-term (i.e. for one year).

B.Estimating/Forecasting the future Manpower Requirements: the first step in the

process is to arrive at the desired organizational structure at a given point in time.Mapping this structure with the existing structure helps in identifying the gap in resourcesrequirement. The number and type of employees needed have to be determined. In

addition to the structure there are a number of external factors that affect thisdetermination. They include business forecasts, competitor strategy, expansion plans,

product/skills mix changes, profit/revenue growth projections, in addition to managementphilosophy and government policies. This step also includes an analysis of the external

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labour/talent environment, its demographics, demand/supply of the required talent, andcost considerations.

Forecastingprovides the basic premises on which manpower planning is done.

Forecasting is necessary for various reasons, such as:

a) The challenges of the general economic business cycles have an influence on the short-range and long-run plans of all organizations. These are inflation, wages, prices, costs

and raw material supplies.

b) An expansion / growth initiative might need the business to use additional machinery

and personnel, and a re-allocation of facilities, all of which call for adequate advanceplanning of human resources.

c) Changes in management philosophies and top management leadership styles.

d) The use of new technology (such as the introduction of automatic controls, or themechanization of materials handling functions) requiring a change in the skills ofworkers, as well as a change in the number of employees needed.

e) Very often, changes in the quantity or quality of products or services require a changein the organization structure. Plans have to be made for this purpose as well.

C. Auditing Human Resources: Once the future human resource needs are estimated, the

next step is to determine the present supply of manpower resources. This is done throughwhat is called "Skills Inventory". A skills inventory contains data about each employees

skills, abilities, work preferences and other items of information which indicate his worth

to the company. Skills inventory are also referred to as competency dictionaries. Thisinformation is usually retained as part of the performance management system with theHR department. This step in the HRP system helps identify the existing profile of the

manpower and its efficiency. It helps highlight where the organization is vs. where itought to be. The step concludes with identifying clear gaps in the skills / manpower mix

required to meet the upcoming business objectives.

D.Job Analysis: After having decided how many persons would be needed, it isnecessary to prepare a job analysis. The recorded details of training, skills, qualification,

abilities, experience and responsibilities, etc. as needed for a job are studied. Job analysisincludes the preparation of job descriptions and job specifications.

E.Developing a Human Resource Plan: This step refers to the development andimplementation of the human resource plan, which consists in finding out the sources of

labour supply with a view to making an effective use of these sources. Some importantconsiderations at this point are:

F: Specific roles/disciplines being hired for, of them which roles are pivotal for the

business

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y Competencies and capabilities neededy Manager vs. employee hiring

y Hire internally vs. External sourcingy Planning for new skills through training existing staff vs. hiring new teams

y In case of surpluses, planning for redeployment / reduction in workforce as

requiredy Succession planning for key positions in the company

Q.4 Explain Thayer and McGhee Assessment of training requirement

model.

Assessment of Training Requirement: Given the investment that organizations make

in training it is critical for organizations to ensure that the money is rightly spent.Training needs consider both the organizations demands and that of the individuals.

Diversification of product lines, new technology, and hence a new kind of job, or a shiftin organizational culture or ways of conducting business are common organizational

needs that cover most employees in the company. On the other hand demands that pertainto individuals growth and development, including induction training for new hires, or

training necessitated by job rotation due to an organizations internal mobility policies areexamples of individual need based training.

The model we shall examine here is the Thayer and McGhee model. It is based on thefollowing three factors:

1. Organization analysis

2. Task analysis

3. Individual analysis

1O

rganization Analysis: Total Organization Analysis is a systematic effort tounderstand exactly where training effort needs to be emphasized in an organization. It

involves a detailed analysis of the organization structure, objectives, human resourcesand future business plans, and an understanding of its culture.

The first step in organization analysis is establishing a clear understanding of both short-run and long-run business and people goals. Long-term objectives are the broad

directions in which the organizations would move over a long duration. These long-term

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objectives are then broken down into specific strategies and short-term goals for each ofthe units/departments. In an organization, the cumulative effect of all these would

ultimately lead to the long-term goal. Short-term goals are constantly in need ofadaptation to the changing environment, both external and internal.

For an organization analysis, there are three essential requirements:

(1) an adequatenumber of employees available to ensure fulfilment of the business operation; (2) thatemployee performance is up to the required standard; and (3) that the working

environment in their units/departments is conducive to fulfilment of tasks.

In order to ensure the first two requirements a human resource inventory needs to bemade. Data regarding positions, qualifications, vacancies, replacements and training time

required for replacements have to be worked out. Job standards must also be worked out.

Various efficiency and productivity indexes, or ratios such a productivity ratios, cost per

unit etc, can be worked out to determine not only efficiency but also adequacy, in terms

of under-manning or over-manning, of the workforce.

An important dimension of organizational need-based analysis, is the diagnosis of the

state of the organization "climate" or culture. While rules, procedures, systems andmethods all contribute to the making of the environment, much of it is also determined by

the attitude that the "people" have in the organization-for instance, the attitude that topmanagement has towards its subordinate staff and the attitudes that members have

towards work, Managers and company procedures. These attitudes are learnt, they resultfrom the persons experience both within and outside the organization, and training

inputs could be used to effect changes of attitude and consequently of the organizationalclimate.

In analyzing the organization climate, both direct and indirect methods could be used.

Direct methods are observation, use of questionnaires, and interviews. Reliance orindirect methods would not give a clear understanding of the attitudes and predispositions

of employees. In fact, factors such as low absenteeism and low turnover are not bythemselves indicators of positive or negative attitudes, and high or low morale. It would

be better to make a careful analysis and study each indicator in a particular situation inconjunction with more direct methods like attitude surveys. Analysis and interpretation of

the data may give clear clues not only to attitudinal training needs but possibly also to killtraining needs.

2. Task Analysis: This activity entails a detailed examination of each job, itscomponents, its various operations and the conditions under which it has to be performed.

The focus here is on the "task" itself and the training required to perform it, rather than onthe individual. Analysis of the job and its various components will indicate the skills and

training required to perform the job at the required standard.

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Standard of Performance: Every job has an expected standard of performance (SOP).Unless such standards are attained, not only will inter-related jobs suffer, but

organizational viability will be affected, and so will the expectations that have been set

for that particular job itself. If the standards set for the performance of a job are known,then it is possible to know whether the job is being performed at the desired level ofoutput or not. Knowledge of the "task" will help in understanding what skills, knowledge

and attitudes an employee should have.

Methods: If an employee is asked to perform a job, the exact components of the job andthe standard of performance must be known. Task analysis entails not merely a simple

listing of the various job components, but also of the various sub-tasks. Conventionalmethods of job analysis are usually suitable for task analysis. They are:

1. Literature review regarding the job.

2. Job performance.

3. Job observation,

4. Data Collection regarding job interviews.

For blue-collar employees, more precise industrial-engineering techniques, like time and

motion studies, could be used, and for white-collar employees, work samplingobservation, interviews, and job performance data analysis could be employed. The focus

in task analysis approach to identifying training needs is with the clear objective of

enhancing the performance standard of a given task. This information is then utilised toestablish the training programme for the employee. It helps identify the skill required,either in terms of education or training, to perform the job, knowledge, and finally

attitudinal pre-dispositions such as the attitudes, towards safety, or interpersonalcompetence that will ensure that the job is performed optimally.

3 Individual Analysis: Individual analysis is the third component in identifying trainingneeds. The focus of individual analysis is on the individual employee, his abilities, and

the inputs required for job performance, or individual growth and development in terms

of career planning.

The common source for this needs analysis usually forms parts of the performance

assessment process. Clues to training needs can also come from an analysis of anindividuals or a groups typical behaviour. The primary sources of such information are:

(1) Observation at place or work, examination of job schedules, quantum of spoilage,

wastage, and clues about interpersonal relations of the employees; (2) interviews with

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superiors and employees; (3) comparative studies of good vs. poor employees, to identifydifferences, skills and training gaps; (4) personnel records; (5) production reports; and (6)

review of literature regarding the job and machines used. Job-knowledge tests, worksampling and diagnostic psychological tests also provide information about employees.

Q.5 Write short notes on:

Succession Planning

Career Planning

Succession planning:

It enables the organization to identify talented employees and provide education

to develop them for future higher level and broader responsibilities. Succession planning

helps to "build bench strength." Succession planning helps to decide where people belong

on the bus.

Succession planning is a process whereby an organization ensures that employees are

recruited and developed to fill each key role within the company. Through your

succession planning process, the organization recruit superior employees, develop their

knowledge, skills, and abilities, and prepare them for advancement or promotion into

ever more challenging roles.

Through the succession planning process, the organization also retain superior employees

because they appreciate the time, attention, and development that you are investing in

them. To effectively do succession planning in the organization, the organization must

identify its long term goals. It must hire superior staff.

The organization need to identify and understand the developmental needs of its

employees. They must ensure that all key employees understand their career paths and

the roles they are being developed to fill. They need to focus resources on key employee

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retention. The organization need to be aware of employment trends in their area to know

the roles

Career Planning:

Career planning is a deliberate attempt by an individual to become more aware of their

skills, interests, values, opportunities and constraints. It requires an individual thinking to

identify career-related goals and establishing plans towards achieving those goals. Often

it is a self-driven process, which every professional spends some time to dwell on and

discuss it with peers or superiors and frame it. It is also viewed from time to time that the

individual looks for possible new career options. Having a career plan builds a

commitment towards achieving it and is viewed as an excellent personal goal-setting

exercise for self motivation.

Career management is considered to be an organizational process that involves preparing,

implementing and monitoring career plans undertaken by an individual alone or within

the organizations career systems. Organizations establish policies that provide for

multiple career path options that an employee can choose from and pursue. This is

supported with a lot of training and development activities that are agreed to with the

manager and planned carefully and executed.

A variety of career development activities and tools exists for use in organizations. HR

managers should be familiar with these components because the managers often serve as

internal consultants responsible for designing the career development systems. Some of

the activities described are individual career planning tools and others are commonly

used for organizational career management. In general the most effective career

development programs will use both types of activities.

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Q.6 Discuss Individual evaluation methods used for performance

appraisal.

When it has been decided who will evaluate, when, and on what basis, the technique to

be used will be selected. A number of approaches will be described here. There are

several ways to classify these tools. The three categories used here will be; individual

evaluation methods; multiple person evaluation methods; and other methods.

Individual Evaluation Methods :There are five ways to evaluate an employee

individually. In these systems, employees are evaluated one at a time without directlycomparing them with other employees.

Graphic rating scale: The most widely used performance evaluation technique is a

graphic rating scale. In this technique, the evaluator is presented with a graph and asked

to rate employees on each of the characteristics listed. The number of characteristics rated

varies from a few to several dozen. A factor analysis of the result indicates that only two

traits were being rated: quality of performance and ability to do the present job.

The rating can be in a series of boxes, or they can be on a continuous scale (0-9) or so. In

the latter case, the evaluator places a check above descriptive words ranging from none to

maximum. Typically, these ratings are then assigned points. For example, outstanding

may be assigned a score of 4 and unsatisfactory a score of 0. Total scores are then

computed. In some plans, greater weights may be assigned to more important traits.

Evaluators are often asked to explain each rating with a sentence of two.

Forced choice: The forces-choice method of evaluation was developed because other

methods used at the time led to a preponderance of higher ratings, which made promotion

decisions difficult. In forced-choice, the evaluator must choose from a set of descriptive

statements about the employee. The two-, three-, or four-statements items are grouped in

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a way that the evaluator cannot easily judge which statements apply to the most effective

employee.

Typically, personnel specialist prepare the items for the form, and supervisors or

the other personnel specialist rate the items for applicability; that is, they determine

which statement describe effective and ineffective behaviour. The supervisor then

evaluates the employee. The Personnel Department adds up the number of statements in

each category (for example, effective behaviour ), and they are summed into

effectiveness index. Forced choice can be used by supervisors, peers subordinates, or a

combination of these in evaluating employees.

Essay evaluation: In essay technique of evaluation, the evaluator is asked to describe

the strong and weak aspects of the employees behavior. In some enterprises, the essay

technique is the only one used; in other, the essay is combined with other form, such as

graphic rating scale. In this case, the essay summarizes the scale, elaborates on some of

the ratings, or discusses added dimensions not on the scale. In both of these approaches

the essay can be open ended, but in most cases there are guidelines on the topics to be

covered, the purpose of the essay, and so on. The essay method can be used by evaluators

who are superiors, peers or subordinates of the employees to be evaluated.

Management by objectives: Another individual evaluation method in use today is

Management by Objectives (MBO). In this system the supervisor and employee to be

evaluated jointly set objectives in advance for the employee to try to achieve during a

specified period. The method encourages, if not required, them to phrase these objectives

primarily in quantitative terms. The evaluation consists of joint review of the degree of

achievement of the objectives. This approach combines the superior and self

evaluation.

Critical incident technique:I this technique, personnel specialist and operating

managers prepare lists of statements of very effective and very in effective behavior for

an employee. These are critical incidents. The personnel specialists combine these

statements into categories, which vary with the job. Once the categories are developed

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and statements of effective and ineffective behavior are provided, the evaluator prepares

a log for each employee. During the evaluation period, the evaluator records examples

of critical (outstandingly good or bad) behaviours in each of the categories, and the log is

used to evaluate the employee at the end of the period. It is also very useful for the

evaluation interview, since the evaluator can be specific in making positive and negative

comments, and it avoids recency bias. The critically incident technique is more likely

to be used by superiors than in peer or subordinate.

Checklist and weighted checklist: Another type of individual evaluation method is the

checklist. In its simplest form, the checklist is a set of objectives or descriptive

statements. If the Rater believes that the employee possesses a trait listed, the Rater

checks the items; if not, the Rater leaves it blank. A rating score from the checklist

equals the number of checks.

A more recent variation is the weighted checklist. Supervisors or personnel specialist

familiar with the job to be evaluated prepare a large list of descriptive statements about

effective and ineffective behaviour on jobs, similar to the critical incident process. Judges

who have observed behavior on the job sort the statements into piles describing behavior

that is scaled from excellent to poor (usually on a 7-11 scale). When there is reasonable

agreement in an item (for example, when the standard deviation is small), it is included in

the weighted checklist. The weight is the average of the Raters to the checklists use.

The supervisor or other Raters receive the checklist without the scores, and they check

the items that apply, as with an un- weighted checklist. The employees evaluation is the

sum of the scores (weights) on the items checked. Checklist and weighted checklist can

be used by evaluators who are superior, peers, or subordinates, by a combination.

Behaviourally anchored rating system: Another technique which essentially is based

on the critical incident approach is the behaviourally anchored rating scale (BARS). This

technique is also called the behavioural expectation scale (BES). This is a new, relatively

infrequently used technique.

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Supervisors give descriptions of actually good and bad performance, and personnel

specialists group these into categories (five to ten typical). As with weighted checklist,

the items are evaluated by supervisors (often other than those who submitted the items).

A procedure similar to that for weighted checklist is used to verify the evaluations

(outstandingly good, for example) with the smallest standard deviation, hopefully around

1.5 on a 7- point scale. These items are then used to construct the BARS.

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Human Resource Management

Q.1 Explain Wage Administration policy. What are the ways by which

wages and salaries are managed in India?

Principles of Wage Determination

As the major production cost, wages affect profits, business investment, competitiveness,

and are a cost push inflationary factor.

The following principles have always been the bases of the wage determination process.1. Preserving real income:This is the argument used by employees and Unions viewing

wages as an income. Following this principle usually results in wages being indexed to

inflation. Underlying aspects that have also impacted on real wage preservation

arguments have been a "basic" minimum wage, and comparative wage justice.

2. Labor productivity:A valid economic theory connects wages to labor productivity.

Conflict arises over the measurement of productivity. Rewarding labor with a wage

increase when technology, and/or capital investment, increases labor efficiency may not

be justified.

3. The capacity of business to afford wage increases:This emphasizes wages as a cost

of production, and the threat of wage increases to squeeze profits. This "capacity"

argument is that followed by business owners.

4. The capacity of the Economy to absorb wage increases:This "capacity" argument

views the macro impact of wage increases on inflation, competitiveness, and other

aspects of internal and external balance; as well as the affect on business profits and

investment from 3. This is the main argument of the Federal Government recognising the

macro policy potential of an Incomes Policy to address external and internal balance

goals to supplement demand management policies, and the effects on income

distribution.

The Methods of Wage Determination

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Generally wage determination can be through a centralized, regulated, institutionalized

system, or a decentralized system. Collective bargaining is when workers with similar

employment conditions and skills unite, usually through a union, to present their wage

demands to their employer(s). Enterprise bargaining is when workers at the same plant

bargain with the employer. An award is an agreement that sets out both wages and

working conditions. Our reliance on a centralized system, often based on indexation, has

dominated wage determination over the last century.

Q.2 Texas is a medium size, plastic manufacturing company. In this

Company, workers have developed grievances against management. For

past 2 years, in spite of making Profit, Company is not paying bonus to

the workers. It is expected that, if the grievances are not dealt, it might

lead to severe consequences. Imagine this situation and explain the

grievance handling procedure, list each steps of the procedure. Suggest

few measures to avoid grievances.

In the solution of a problem, the greater burdens rest on management. The clearestopportunity for settlement is found at the first stage, before the grievance has left the

jurisdiction of the supervisor.

The following directions help in handling grievances properly.

i). Receive and define the nature of the dissatisfaction:The manner and the attitude

with which the supervisor receives the compliant of grievance are important. The

supervisor should assume that employee is fair in presenting the compliant or grievance.

Statements should not be prejudged on the basis of past experience with this or other

employees. The supervisors who are task oriented, as contrasted with people oriented,

tended to experience a significantly greater number of complaints being filed in their

units.

ii). Get the facts: In gathering facts, one quickly becomes are of the importance of

keeping proper records such as performance ratings, attendance records and suggestions.

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The supervisor is wise to keep records on each particular grievance. The supervisor

posses and exercise some skill in interview conference, and discussion.

iii). Analyze and Divide: With the problem defined and the facts in hand, the manager

must now analyze and evaluate them, and then come to some decision. There is usually

more than one possible solution. The manager must also be aware that the decision may

constitute a precedent within the department as well as the company.

iv). Apply the Answer:through the solution decided upon by the supervisor is adverse to

the employees, some answer is better than none. Employees dislike supervisors who will

take no stand, good or bad. In the event of an appeal beyond this stage of procedure, the

manager must have the decision and the reasons for his decisions should be properly

recorded.

v). Follow up:The objective of the grievance handling procedure is to resolve a

disagreement between an employee and organization. Discussion and conference are

important to this process. The purpose is to determine whether the clash of interest has

been resolved. If the follow up reveals that the case has been handled unsatisfactorily or

that the wrong grievance has been processed, then redefinition of the problem, further

fact finding, analysis, solution and follow up are required.

The few measures to avoid grievances

Build good morale, maintains code of discipline. It Brings uniformity in handling

grievances. It develops faith of employees.

Reduces personality conflicts. It acts as a pressure valve.

Provides judicial protection to the employees. Provides avenues to present the problems.

Strengthen good corporate relationship. It detects the flaws in working conditions and

helps to take corrective measures.

Q.3 Define competency. How competency is linked to Human resource

system

Meaning of competency

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A competency is an underlying characteristic of a person/organization which enables to

deliver performance in a given job, role or a situation1. Thus the performance of an

organization or an individual will depend on the relevant competencies they possess and

higher the level of competencies, superior will be the performance. Competencies allow

focus process-How things are done? not simply on outcomes.

Classification of competencies

Competencies can be broadly classified into three categories namely organizational

competencies, job related competencies and personal competencies.

Organizational competencies are unique factors that make an organization competitive.

According to C.K.Prahlad and Hamel who wrote the famous book

Competing in the future, organizational competencies- a) Provide potential access to a

wide variety of markets b) Make a significant contribution to perceived customer benefits

of the end product c) Are difficult for competitors to imitate. Organizations need to focus

their efforts in the area of their competencies and strengthen them and outsource the other

activities. This is very important as these competencies are fundamental to the success of

the organization. Some of the examples for organizational competencies include Sony-

miniaturization, Phillips-optical media, Honda-engines, and Intel-microchip.

Job related competencies are those competencies which are required for performing a

specific job. These are the competencies someone must demonstrate to be effective in his

job/role, task or duty. Thus these competencies are job or role specific and vary from job

to job. A competency model can be used to develop specific job related competencies and

come out with a competency dictionary. These competencies are organization specific as

roles and responsibilities may vary from organization to organization even though the job

title may be the same. Job related competencies may become the criteria for most of the

HR functions like selection, Training and development, performance appraisal,

compensation etc.

Personal competencies are aspects of an individual they include the abilities of

individuals to perform the activities within an occupation or function to the standard

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expected in employment. It includes the various behavioral competencies apart from the

knowledge and skill level of an individual. These competencies include.

Personal competencies like developing oneself, taking initiative, delivering results,

showing commitment, and adaptability.

b. Interpersonal competencies like influencing, relationship building, advising, team

orientation, service orientation, cultural awareness, communication, and openness.

c. Information oriented competencies like strategic thinking, business understanding,

conceptualizing, innovation, processing, analyzing and comprehending.

d. People management competencies like leadership, directing, building teams,

facilitating performance, motivating, guiding people, and transferring knowledge.

How competency is linked to Human resource system?

The four steps may be for competency linked to Human resource system:

1. Developing a Competency model

2. Competency Mapping

3. Linking Competencies to Compensating factors

4. Designing compensation on the basis of actual competencies

Developing a competency model

The basic need for a competency based compensation management is a competency

model. A competency model is one which identifies the various competencies required

for performing a job and describing these competencies in the form of indicators, which

can be quantified. Each competency can be quantified on a scale on the basis of its

relative importance with respect to each job. This serves as a reference for all

competency management activities in the organization. Competency model is

organization specific as each organization may have its own way of defining and

quantifying competencies and competencies may be unique for each organization.

We have been working with few organizations on issues related to competency

management and this paper is based on the experience in developing the competency

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model and its applications. We adopted following procedure to develop standard

competencies.

1. We started with job/role analysis to identify the competencies require to perform the

job. Job descriptions and job specifications can throw a light on competency

requirements for satisfactory performance of the duties and responsibilities, which are

listed in them. If these are not available then job analysis is to be carried out. This gives

us the preliminary list of job specific competencies.

2. Job holders and immediate superiors may have better understanding of the jobs and

thus they can easily identify the critical competencies. Thus we gathered further

information with discussions and brainstorming sessions involving them. This helped us

in refining the list of preliminary competencies developed in the first step.

.

Competency Mapping

Once the dictionary is ready, then the actual mapping process needs to be carried out. To

do the mapping, the following steps were followed by us in mapping out competencies:

1. A structured questionnaire was designed for the employee and his immediate superior.

The same questionnaire is administered to both for getting the rating.

2. The employee whose competency is to be mapped is asked to rate his/her own

competency level in the questionnaire.

3. The immediate superiors ratings of the employee are also collected in the same way.

4. A weighted average of the ratings is computed to get the final score. 70% weight was

given to the superiors rating and 30% to the employees self rating.

Linking the Competencies to Compensation Factors

The next step in the competency based compensation model is to link the compensation

to competency mapping ratings of the employee. This is done so by computing the

Compensation Factor which is defined as the weighted average of the competency

ratings an employee has obtained. This compensation factor can then be used to design

compensation strategies according to the organizations compensation policy. It can also

be used to fine tune the policy and adjust for internal and external equities which are

explored in the sections given below. Further computations and adjustments might be

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required to the compensation factor depending on situations, which will be explained as

and when those situations are taken up for discussion.

Computing the Compensation Factor F:

Let us assume that for a given level of employees m competencies have been

identified.

Let xp, where p = 1 to m represent the average criticality ratings of each of the

competencies identified. Let the matrix C, of the order 1 X m, represent the row vector of

criticality ratings of competencies.

Let yij, where i = 1 to m and j = 1 to n, m is the number of competencies and

n is the number of employees, represent the competence rating exhibited by jth

employee on ith competence. Let the matrix R, of the order m X n, represent the vector of

employee ratings on each competency where m is the number of competencies and n

is the number of employees. Since competencies vary across organizational units like

departments or hierarchical levels, the number n typically represents the number of

employees in a given unit.

Let Cp where p = 1 to m represent the sum of the criticality ratings.

Let the matrix F of the order 1 X n represent the row vector of each employees

compensation factor.

Then we can say that

F 1 X n = (1/Cp )* C 1 X m * R m X n --------------------- (1)

The above equation actually gives out the compensation factors, which are the weighted

average of the employees ratings. The row vector F can now be used to design the

compensation packages of the employees of the unit and/or the hierarchical level. The

next section uses this model to demonstrate how various compensation packages can be

designed using the compensation factor vector.

Designing Compensation Packages:

The compensation models vary across organizations. Two typical cases are very frequent.

First is the case where the organization makes changes to the Basic salary component

of the employee. Next is the case where the organization does not change the basic

frequently, but has an Incentive component to reward performances of employees

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which are highly satisfactory. Below we explore both the cases sufficiently and provide

illustrations with the help of live data wherever necessary. It must be noted that while the

competency mapping data is live, several assumptions and adjustments have been made

to the compensation data, to keep the Non-Disclosure Agreement sacred.

Q.4 Think of a situation in which an employee is to be dismissed from the

organization, what will be the fair steps of dismissal followed by the

organization?

According to Article 311 of the Indian Constitution, which says that no person shall

be dismissed or removed from service until he has been given a reasonable

opportunity to show cause as to why the proposed action should not be taken

against him?"

The Model Standing Orders, too, lay down that, "before an employee is dismissed,

he should be given an opportunity to explain the circumstances against him."

The following steps are followed for dismissal of an employee:

a) Charge Sheet is Framed and Issued:

The first step in the procedure is to frame a written charge sheet which is based

upon a written complaint against the employee in question, and which contains

details of the offence with which he is charged and the allegation of misconduct

made against him, and indicating the time limit within which a reply to the charge

sheet should be submitted to the authorities.

The employee is called upon to show because why a disciplinary action should not

be taken against him.

The contents and implications of the charge sheet may be explained to him in his

own language and in the presence of some reputable witness, before a copy of it is

handed over to him. If he refuses to accept it, it should be sent to his residential

address "registered post with acknowledgement due". If the employee refuses to

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take delivery of the registered letter, or when it has been returned undelivered, it

should be published in a local paper to ensure its wide publicity.

b) Receipt of Explanation:

The employee may submit his explanation within the prescribed period of time, or he

may ask for an extension of time for its submission. In the latter case, the request

should be considered in good faith in accordance with the rules of natural justice.

c) Issue of Notice of Enquiry:

If the explanation is received from the employee is found to be unsatisfactory, a

notice of enquiry, mentioning the time, date and place, has to be given to him in

which the name of the person or officer who would conduct the enquiry would also

be mentioned. The employee is required to be present at the appointed time and

place, together with his witness, if he has any.

d) The Holding of Enquiry:

On the appointed day and at the appointed place and time, the enquiry is held by the

Enquiry Officer in the presence of the employee. The contents of the charge sheet

and an explanation of the procedure to be followed at the enquiry are communicated

to the worker. If he pleads his innocence, the enquiry proceeds; but if he pleads

guilty, unconditionally and in writing, the enquiry is dropped.

e) The Findings:

Once the enquiry is over, the Enquiry Officer has to give his findings, which shouldinvariably contain the procedure which was followed, the partys statements, the

documents produced and examined, the charges made and the explanations given

and the evidence produced. The officer should then record his own findings on each

of the charges and the grounds on which he has come to a particular conclusion. He

should specifically mention which charges have been proved and which have not

been proved. He then submits his findings to the authorities empowered to take a

disciplinary action against the employee. He, however, is not required to make any

recommendations.

a) On receiving the report, the executive authorized to take a decision thereon

passes an order of punishment.

b) Communication of the order:

A copy of the orders is then handed over to the employee.

Discharge of an Employee

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The following conditions must necessarily be satisfied before an employee is

discharged from service by way of punishment for misconduct.

a) The misconduct of the employee is of such a nature as to indicate that his

discharge or dismissal would be an appropriate punishment and that this kind of

punishment has been provided in the Standing Orders.

b) An enquiry must be held by the employer into the misconduct which an employee

has been charged with. This enquiry should be held only after a charge sheet has

been preferred against him, and he has been given due notice of the time, place and

date of enquiry.

c) The officer should be held in such a manner as to ensure that it would be fair and

proper and in conformity with the principles of natural justice. The worker must be

given an adequate opportunity to defend himself and to present witness in support of

his contention or case.

d) The officer holding the enquiry should not be one who may be disqualified on the

ground of bias, personal interest, or on the ground of his having been on eye witness

to the misconduct with which the employee is charged.

e) At the conclusion of the enquiry, the findings, based on recorded evidence, should

be recorded by the enquiry officer.

f) The findings must necessarily be based on recorded evidence and should not be

perverse.g) The order of dismissal or discharge against the employee must be passed in good

faith.

h) The order must be duly communicated to the employee against who it has been

passed.

Q.5 Suggest few measures to improve employee morale.

Measurement of Employee Morale

Signs of low morale are generally not noticed till it is obviously, low or when something goes

amiss. By the time the management recognizes the fact that morale has deteriorated, it is

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faced with one crisis or another. Perceptive managers are, therefore, constantly on the

lookout for clues to any deterioration in the morale of the employees.

Dale Yoder and others pointed out the following as signals of low morale:

1. Employee unrest.

2. High rate of absenteeism.3. Tardiness.

4. High employee turnover.

5. Grievances.

6. Need for discipline

7. Fatigue and monotony.

ImprovingMorale

There are a number of measures which can be used to control the warning signals of low

morale.

The following are the positive measures to be taken to bring job satisfaction to the

employees and reconcile individual interests with the interests of the organization.

1. Creation of whole jobs.

2. Job enrichment.

3. Building responsibility into a job.

4. Modifying the work environment.

5. Flexing working hours.

6. Job sharing.

7. Rotation of jobs.

8. Profit sharing.

Morale can also be improved by adapting several other measures such as employee contest,

special recognition and awards to long service employees, film shows to employees during

their lunch hour, free coffee during rest pauses, and training the supervisors in how to handle

people.

1. Under this method, complete jobs are assigned to the workers. The complexity of a jobshould be increased so that it may appeal to their higher needs.

2. Job enrichment tries to deal with dissatisfaction by increasing job depth. Under this,

individual employees may be given responsibility for setting their own work pace, for

concerning their own errors, and/or for deciding on the best way to perform a particular task.

3. Employees should be encouraged to take risk decision.

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4. This can be achieved by:

i) Developing work groups;

ii) Developing the social contacts of the employees;

iii) The use of music;

iv) Regular rest breaks.5. Flex time permits employees to arrange their work hours to suit their personal needs and

lifestyles.

This is particularly suited to situations with fluctuating workloads. Flex time employees are

responsible for coordinating their functions with other employees and thereby have more

responsibility and autonomy.

6. Two workers divide a fulltime job between themselves splitting not only the hours of work

but also the salary.

7. This reduces employee's boredom which arises out of the monotonous nature of his work.

8. Morale can be improved by effective profit sharing schemes. In addition to its economic

aspects, profit sharing has also psychological aspects relating to friendly move by the

management in providing the workers an opportunity to participate in the profits.

Q.6 Explain Victor Vrooms Expectancy theory of motivation.

Vroom's expectancy theory :It assumes that behavior results from conscious choices

among alternatives whose purpose it is to maximize pleasure and minimize pain.

Together with Edward Lawler and Lyman Porter, Victor Vroom suggested that the

relationship between people's behavior at work and their goals was not as simple as was

first imagined by other scientists. Vroom realized that an employee's performance is

based on individuals factors such as personality, skills, knowledge, experience and

abilities.

The theory suggests that although individuals may have different sets of goals, they can

be motivated if they believe that:

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y There is a positive correlation between efforts and performance,

y Favorable performance will result in a desirable reward,

y The rewardwill satisfy an important need,

y The desire to satisfy the need is strong enough to make the effort worthwhile.

The theory is based upon the following beliefs:

Valence

Valence refers to the emotional orientations people hold with respect to outcomes

[rewards]. The depth of the want of an employee for extrinsic [money, promotion, time-

off, benefits] or intrinsic [satisfaction] rewards). Management must discover what

employees value.

Expectancy

Employees have different expectations and levels of confidence about what they are

capable of doing. Management must discover what resources, training, or supervision

employees need.

Instrumentality

The perception of employees as to whether they will actually get what they desire even if

it has been promised by a manager. Management must ensure that promises of rewards

are fulfilled and that employees are aware of that.

Vroom suggests that an employee's beliefs about Expectancy, Instrumentality, and

Valence interact psychologically to create a motivational force such that the employee

acts in ways that bring pleasure and avoid pain.