HRM Complete Notes

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INTRODUCTION

INTRODUCTION INTRODUCTION

Human Resources are one of the most vital assets of an Human Resources are one of the most vital assets of an organization. It is the people who

organization. It is the people who make other resources moving;make other resources moving; they perform various activities in different financial areas like they perform various activities in different financial areas like production, marketing, finance etc. The significance of human production, marketing, finance etc. The significance of human resources in a modern organization can be

resources in a modern organization can be seen €€in the contextseen €€in the context of activation of non

of activation of non human resources means for developinghuman resources means for developing competition advantages and source of creative energy. HRM competition advantages and source of creative energy. HRM handle all physical and financial resources in

handle all physical and financial resources in an organization.an organization. The quality of human resource is a

The quality of human resource is a critical factor in thecritical factor in the success of any organization, and more so

success of any organization, and more so in service organizationin service organization like banking and insurance. In super co

like banking and insurance. In super competitive world, the thingmpetitive world, the thing that is most unique to

that is most unique to every financial institution is the capabilityevery financial institution is the capability of its people .It

of its people .It is the organization’s employees-its humanis the organization’s employees-its human resources-that give a bank or insurance firm its

resources-that give a bank or insurance firm its competitive edge.competitive edge.

WHAT IS HUMAN RESOURCE MANAGEMENT?

Wendell French

Wendell French describes human resource management as describes human resource management as “the“the philosophy, policies, procedures, and practices related to the philosophy, policies, procedures, and practices related to the management of people within the organization.”

management of people within the organization.” In the words of

In the words of RobbinsRobbins “Human resource management is“Human resource management is concerned with the “people” dimensions in management. It is concerned with the “people” dimensions in management. It is aa process consisting of the acquisition, development, motivation, process consisting of the acquisition, development, motivation, and maintenance of human resources.”

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Human resources management is about managing people. It is a Human resources management is about managing people. It is a process of binding of

process of binding of people and organizations together so thatpeople and organizations together so that the objectives of each are achieved.

the objectives of each are achieved.

Human resource management is based on

Human resource management is based on four

four

fundamental principles:

1.

1. Human Human resouresources rces are tare the mhe most imost importaportant assnt assets aets ann

organization has and their effective management is the organization has and their effective management is the key to its success.

key to its success. 2.

2. OrganiOrganizatiozational succenal success is most likess is most likely to be achly to be achieved iieved iff the

the personnel policies personnel policies and procedand procedures are ures are closely linkedclosely linked to corporate objectives and strategic plans.

to corporate objectives and strategic plans. 3.

3. OrganiOrganizatiozational culturnal culture, values and climae, values and climate signifte significanticantlyly influence managerial behavior and exert a major influence influence managerial behavior and exert a major influence on the achievement of excellence. Hence, continuous

on the achievement of excellence. Hence, continuous effort starting from the top is required for the

effort starting from the top is required for the management and acceptance of the culture.

management and acceptance of the culture. 4.

4. Human rHuman resouresource manace managemengement is concet is concerned wrned withith

integration –getting all members of the organization integration –getting all members of the organization involved and working together with a sense of

involved and working together with a sense of commoncommon purpose.

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Human resources management is about managing people. It is a Human resources management is about managing people. It is a process of binding of

process of binding of people and organizations together so thatpeople and organizations together so that the objectives of each are achieved.

the objectives of each are achieved.

Human resource management is based on

Human resource management is based on four

four

fundamental principles:

1.

1. Human Human resouresources rces are tare the mhe most imost importaportant assnt assets aets ann

organization has and their effective management is the organization has and their effective management is the key to its success.

key to its success. 2.

2. OrganiOrganizatiozational succenal success is most likess is most likely to be achly to be achieved iieved iff the

the personnel policies personnel policies and procedand procedures are ures are closely linkedclosely linked to corporate objectives and strategic plans.

to corporate objectives and strategic plans. 3.

3. OrganiOrganizatiozational culturnal culture, values and climae, values and climate signifte significanticantlyly influence managerial behavior and exert a major influence influence managerial behavior and exert a major influence on the achievement of excellence. Hence, continuous

on the achievement of excellence. Hence, continuous effort starting from the top is required for the

effort starting from the top is required for the management and acceptance of the culture.

management and acceptance of the culture. 4.

4. Human rHuman resouresource manace managemengement is concet is concerned wrned withith

integration –getting all members of the organization integration –getting all members of the organization involved and working together with a sense of

involved and working together with a sense of commoncommon purpose.

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IMPORTANCE OF HUMAN RESOURCE

MANAGEMENT

Human resources are the most precious possessions of any Human resources are the most precious possessions of any organization. It is, therefore, necessary to take utmost care for organization. It is, therefore, necessary to take utmost care for their survival and growth. Human resource management is the their survival and growth. Human resource management is the management of this most important resource. Liberalization and management of this most important resource. Liberalization and globalization has increased the importance of human resource globalization has increased the importance of human resource management by manifold.

management by manifold.

Effective human resource management is vital for its impact is Effective human resource management is vital for its impact is felt from the individual level to

felt from the individual level to the national level. Thethe national level. The

significance of human resource management is at four levels: significance of human resource management is at four levels:

1.

1. OrganizationOrganizational al significance:significance: Human resource managementHuman resource management plays

plays an an important important role role in in helping helping the the organization organization attainattain its goals. It helps in

its goals. It helps in this direction through effective humanthis direction through effective human resource planning, recruitment and selection of

resource planning, recruitment and selection of talentedtalented employees, training and development of employees,

employees, training and development of employees,

developing sound performance appraisal and compensation developing sound performance appraisal and compensation systems, career planning and so on.

systems, career planning and so on. 2.

2. ProfessionaProfessional l significance:significance: Effective management of humanEffective management of human resource contributes towards the personal growth and

resource contributes towards the personal growth and development of every employee. It helps to improve development of every employee. It helps to improve thethe quality of work life by providing a

quality of work life by providing a healthy workinghealthy working environment.

environment. 3.

3. Social significance:Social significance: Human resource management is ofHuman resource management is of great importance to the society. Sound management of great importance to the society. Sound management of human resources helps in satisfying the social and

human resources helps in satisfying the social and psychological needs of employees

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Through suitable employment. It avoids wastage of human Through suitable employment. It avoids wastage of human resources and helps in the conservation of

resources and helps in the conservation of physical andphysical and mental health.

mental health. 4

4. National . National significance:significance: The true wealth of nation is not The true wealth of nation is not itsits natural

natural resources resources but but its its people. people. Human Human resources resources andand their management play a vital role in

their management play a vital role in the development of athe development of a nation. The development of a country depends on

nation. The development of a country depends on the skills,the skills, attitudes and values of its human resources. Effective

attitudes and values of its human resources. Effective management of human resources helps to speed up the management of human resources helps to speed up the process of economic growth, which in turn leads

process of economic growth, which in turn leads to higherto higher standards of living and fuller employment.

standards of living and fuller employment.

OBJECTIVES OF HUMAN RESOURCE

MANAGEMENT

Every organization has some objectives. In order to

Every organization has some objectives. In order to attainattain organizational objectives, it is necessary to integrate the

organizational objectives, it is necessary to integrate the

interests of the employees with that of the employer. Hence the interests of the employees with that of the employer. Hence the objectives of human resource management are derived from the objectives of human resource management are derived from the basic objectives of the organization.

basic objectives of the organization.



 Integration of goals: HRM seeks to integrate all theIntegration of goals: HRM seeks to integrate all the

individuals and groups within the organization by reconciling individuals and groups within the organization by reconciling individual/group goals with those of the organization.

individual/group goals with those of the organization.



 Cost containment: In today’s competitive businessCost containment: In today’s competitive business

environment, keeping expenses down or cost containment, is environment, keeping expenses down or cost containment, is a critical HRM goal.

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 Goals through able employees: HRM seeks to help the organization attain its goals by providing it with competent and dedicated employees.

 Optimization of human resources: By employing the knowledge and skills of employees efficiently and

effectively, HRM seeks to optimally utilize the human resources of the organization.

 Growth and development of employees: HRM seeks to ensure the growth and development of the employees by providing opportunities for training and advancement.

 Self-actualization: HRM aims to increase employee’s job satisfaction and set them on the path of self-actualization by providing them with opportunities to utilize their

potential to the fullest.

 Satisfy needs: By providing adequate compensation, HRM seeks to ensure that the basic needs of the employees are satisfied and they are able to live a dignified life.

 Motivation: An important goal of HRM is to motivate the human resources through adequate monetary and

non-monetary incentives so as to stimulate better performance, which in turn will enable the organization to accomplish its objectives. It also helps to retain talented employees and reduce employee’s turnover.

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*SCOPE OF HUMAN RESOURCE MANAGEMENT

The scope of human resource management is very vast. It is

connected with all major activities in the working life of a worker. HRM is connected with every other department, as human

resources are the requirement of all departments in the organization.

HRM covers the following areas:

 Human resource planning

 Job analysis and design

 Recruitment and selection and induction

 Training and development

 Performance appraisal

 Transfers and promotion

*HUMAN RESOURCE MANAGEMENT

FUNCTIONS

Human resource management involves a large number of functions. This number varies according to the size and needs of the organization. The functions of HRM affect the organization internally. However the external environment affects HRM

functions. The major functions of human resource management are:

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♦ Human resource planning: Human resource planning is

the process of assessing the organization’s human

resources needs in the light of organizational goals and changing conditions and making plans to ensure that a competent, motivated work force is employed.

Human resource planning is very important in these modern times where everything is fluid and changes are occurring at great speed.

♦ Organizational and job designing: An important

activity of HRM is developing an organization which caters for all the activities required, groups, them together in a way which encourages integration,

cooperation, and provides for effective communication and design making.

Job design is concerned with deciding on the content and accountabilities of jobs in order to motivate employees and maximize job satisfaction.

♦ Staffing: staffing or acquisition of human resource is

another activity of human resource management. Staffing activities determine the composition of an organization’s human resources.

• Staffing activities include: attracting qualified people

to the organization, selecting from among candidates, reassigning employees through transfer, promotion or demotion and ultimately managing the employee

separation through resignation, discharge or retirement.

♦ Training and development: This activity of HRM

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and groups within the organization. These activities aim to help employees learn new skills or refine

existing skills.

Human resource managers must decide which skills or knowledge areas need development and which methods are most effective for helping employees acquire skills and knowledge.

 Performance appraisal and review: Performance appraisal and review is an ongoing evaluation of

individual and group contributions to the organization and the communications of those evaluations to the persons involved.

This HRM functions is carried out for a number of purposes:

To provide feedback about performance, to determine the need for training, to make decisions about promotions, pay increases and so on.

 Compensation and reward: Organization compensates employees through wages and salaries, bonuses and benefits, such as health insurance, vacation time, and pension programs. The presence or absence of rewards and recognition is important to employee morale and performance.

Compensation decisions include determining: ensuring fair and equitable pay differences among employees,

designing a pay packages relative to that of its competitors, forms of compensation and so on.

 Health and safety management: This function of HRM includes activities and events that serve to protect organization members from illness and

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physical dangers in the workplace and to assist them with their physical and emotional health.

For many organizations, protecting the health and safety of human resources is a prime social

responsibility. This HRM functions serves to preserve the human resources of the organization.

 Employee participation: This is a relatively new function of HRM. Employee participation focuses on giving employees a voice, sharing information with them and consulting them on matters of mutual interest.

Employee participation is an important step in establishing industrial democracy.

* Definition of Personal Management : * Difference between PM & HRM

PM HRM

1. Personnel means persons employed. Personnel management is the management of people employed

1.HRM is the management of employees skills , Knowledge, abilities, talents, aptitudes, creative abilities.

2. Employee in personnel

management is mostly treated as an economic man as his services are exchanged for wage/ salary

1. Employee in human resource management is treated not only as economic man but also as social & psychological man. Thus, the complete man is

viewed under this approach.

3. Employee is viewed as commodity or tool or equipment which can be purchased & used

2. Employee is treated as a resource

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centre & therefore

management controls the cost of labor

profit centre & therefore invests capital for human resource training &

development

5. Employees are used mostly for organizational benefit

4. Employees are used for the multiple mutual benefit of the organization , employees and their family members

6. Personnel function is treated as only an auxiliary

5. Human resource management is a strategic management function.

* Challenges before HR Manager

1. Work life balance- As HR personnel has a dual responsibility he has to get the work done by the employees to attain the goal of the organization & at the same time he has to handle the grievances of employees , employees should not be overloaded with task & goals 2. Employee Expectations – With the changes in the workforce

demographics , globalization , liberalization change in the attitude of employees has been observed their expectations have changed they ask for empowerment & expect fair treatment by the

management.

3. Ethical HR Practices- HR managers role in building an ethical

climate is significant because they are the one who actually frame the culture of the organization they should follow ethical practices from recruitment to appraisal till the full & final settlement. It has been observed that they themselves at times carry on with

unethical practices like taking discounts from consultancies, caterers transport operators etc.

4. Talent Retention – One of the most challenging problem for HR Managers is to retain the talents because of intense competition from global companies domestic companies are in trouble because most of the Indian Companies at present are not offering the perks & benefits what an MNC’s offer, so they find it difficult to retain the talent

5. Managing different work force - For HR manager this is very

important that they keep the environment of the organization free of conflicts & when there are thousands of people working together many conflicts crops up so policy of the Companies should be

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secular & should not show any biasness all this things has to be considered and implemented by the HR manager

Role of HR Manager –notes in class

Characteristics of the workforce –notes in class Personnel Philosophy – notes in class

Personnel Manual-notes in class

HR as a supporting system – Most of the organization doesn’t consider HR to be a part of decision making team they are just considered to be a supporting pillar whereas in reality they are the one who actually represent the entire organization & if their views are not included in the policies of the Company it may

affect the climate of the organization.

STRUCTURE OF HUMAN RESOURCES

DEPARTMENT

A human recourse department is becoming an integral part of every organization.

The following diagram illustrates the common structure of the human resources department:

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HUMAN RESOURCE PLANNING

Human Resource Planning is based on the belief that people are an organization’s most important strategic resource. It

attempts to address

The human resource needs of an organization both in quantitative and qualitative terms. Human Resource planning is also concerned with how people are employed and develops in order to improve organizational effectiveness.

DEFINITION

PRESIDENT/DIRECTOR (Human Resources)

Manager Manager Manager Manager Manager

Recruitm ent & Selection Training & Developme nt Compensati on & Benefits Employe e Welfare Employe e Relation s

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Wendell French defines human resource planning as “the process of assessing the organization’s human resources needs in the light of organizational goals and changing conditions and making plans to ensure that a competent, stable work force is employed.”

OBJECTIVES OF HUMAN RESOURCES

PLANNING

The specific objectives of human resources planning may vary as per the specific needs of the organization. However, most human resource plans have the following objectives:

• Optimal utilization of human resources: The main

objective of human resource planning is to maintain and improve the organization’s ability to achieve its goal by developing strategies that will result in optimum

contribution of human resources.

• Meeting personnel requirements: Human resource planning

is not concerned with merely forecasting future manpower requirements of the organization but also with developing appropriate recruitment and selection strategies to meet these requirements. Human resource planning seeks to

recruit and select employees in a manner that will maximize return on the investment in human resources.

• Placement of personnel: It is not sufficient the right

personnel; but it is important to place them on the right job. Human resources planning strive to place the right man on the right job.

• Prevent disruption of work: The costs of work disruption

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very high. Human resource planning aims to ensure the timely availability of the right number and kind of people for the smooth running of the organization.

• Control costs: An important objective of human resource

planning is to reduce or control labor costs by maintaining a proper balance between demand for and supply of human resources. Human resource planning seeks to cut and save costs on human resources.

• Training and management development: Human resource

planning aims at developing a well-trained and flexibility workforce. This increases the organization’s ability to an uncertain and changing environment.

*Process of Human Resource Planning It consist of the following steps

1. Analysing organizational plans

2. Demand forecasting: forecasting the overall human resource requirements in accordance with the organizational plans

3. Supply forecasting : obtaining the data & information about the

present inventory of human resources and forecast the future changes in the human resource inventory

4. Estimating the net human resource requirements

5. In case of future surplus , plan for redeployment , retrenchment & lay off

6. In case of future deficit, forecast the future supply of human resources from all sources with reference to plans of other Companies.

7. Plan for recruitment, development & internal mobility if future supply is more than or equal to net human resource requirements.

8. Plan to modify or adjust the organizational plan if future supply will be inadequate with reference to future requirements-( ref diagram)

TRANSFERS

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Reshuffle of human resources is essential for the smooth and efficient management of the organization. It also serves the broader interests of the organization. Hence such reshuffles popularly known as job transfers hence become very common in modern business organizations.

Job transfers carried out on a routine basis in organization. They are designed to prepare managers to take on the additional responsibilities by providing them with experience in different areas of the firm. Most of the job transfers are considered to be lateral promotions; that is the manager is placed in a position that carries similar authority and responsibility but in a different part of the firm.

DEFINITION

Yorder and associates have defined job transfer as “a lateral shift causing movement of individuals from one position to another usually without involving any marked change in duties, responsibilities, skills needed or compensation.”

Transfers may be initiated either by the company or the employee. A company may initiate transfer to place employees in positions where they are likely to be more effective. Similarly, employees may initiate transfer to locations where they are likely to get greater satisfaction.

TRANSFER POLICY

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Every organization should have a just and impartial policy concerning the transfers of employees. It is important that every employee knows the policy. A transfer policy serves as a guide – post for managers in affecting transfer policy.

A good transfer policy should satisfy the following conditions:

• It should states the types of transfers (departmental or

interdepartmental) and the circumstances under which transfers will be made.

• The persons who have the authority to order transfers.

Usually the person in charge of that department handles transfers in each department. The HR department usually, has a big say in transfers.

• The effect of transfer on pay and seniority should be

clearly mentioned.

• The facilities (leave, special, allowance for shifting place)

available to transferred employee should be clearly stated.

• The transfer policy should state the conditions under which

personal requests of the employees for transfer will be entertained.

• All transfer decisions should be communicated to the

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TYPES OF TRANSFERS

Employee transfer may be classified in to three types based on its purpose:

 Transfers that are affected for the training and development of the employees.

 Transfers made for adjustment of varying volumes within the organization.

 Transfers designed to correct the problem of poor employee placement.

The common types of transfers are:

 Production transfers: When there is excess manpower in one department or branch in the organization, they are transferred to other departments or branches in order to lay off. The main purpose of such transfer is to prevent lays offs and stabilize employment.

 Replacement transfers: these types of transfers are applied for the protection of senior or long serving

employees. Such transfers are made when the operations of the organization are declining and hence a long-standing

employee replaces a junior or new employee.

 Versality transfer: Versality transfers are affected to give the employee a chance to learn various skills involved in different jobs. The purpose of such transfers is to develop and all round employee with varied experience. He is

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Shift Transfers: Shift transfers are routine in industries where work is in process for 24 hrs or in three shifts. Such

transfers are usually effected on rotation basis but they are also effected for personal reasons of an employee such as marriage, child - care, age parents etc.

 Remedial Transfers: Remedial Transfers are affected to correct the wrong placement of the employee or shift an inefficient employee who ids not carrying out his job

satisfactorily. The wrongly placed employee is placed in a more suitable job. Such transfers protect the interest of the employees.

 Penal Transfers: The management may transfer an

employee from one position to another as punishment for undesirable acts performed by him. In such transfers, the employee is shifted to less important position in the

organization.

PROMOTIONS

Promotion refers to advancement of an employee to a higher post carrying greater responsibilities, higher status and better salary. Promotion puts an employee or executive on a career path, which goes upward.

On being promoted, promoter’s duties and responsibilities increase, and the higher ones goes in an organization the greater is the effect of the employee’s decision on the working of the organization.

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Promotion is upward movement of an employee in the organization’s hierarchy, to another job commanding greater

authority, higher status and better working conditions. Generally, when an employee is assigned a higher-level job with more pay and powers, he is said to be promoted.

DEFINITIONS

According to Scott and Clothier, a promotion “is a transfer of an employee to a job which pays more money or one that carries

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some preferred status.”

CHAIRMAN AND MANAGING DIRECTOR EXECUTIVE DIRECTOR

SCALE VII: GENERAL MANAGER SCALE VI: DEPUTY GENERAL MANAGER SCALE V: ASSISTANT GENERAL MANAGER

SCALE IV: DIVISIONAL MANAGER

SCALE II: MANAGER

SPECIAL ASSISTANT CLERK

SCALE I: OFFICER

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BASES OF PROMOTION

Organizations adopt a variety of criteria for promoting employee. Promotion can be made on the basis of seniority or merit or a

combination of both

PROMOTION BASED ON SENIORITY

Seniority implies relative length of service in the

organization. Seniority is described as “The principle that an

employee’s relative length of service is an organization is a factor in determining his employment rights and job opportunities in the organization.”

Promotional systems that are based on seniority place a premium on length of service and job experience. I.e. those employees who joined the organization first should be the first choice for promotions. Seniority suggests that employees should be given preference in various aspects of employment based on the length of their service.

The use of seniority as the basis of promotion is based on the assumption that the longer a person does a job, the more he learn from it. This experience gives him greater knowledge of the organization and jobs related to his own, hence he is more

suitable for promotion.

PROMOTION BASED ON MERIT

This system of promotion takes in to account the

knowledge, skills and performance of an employee it stresses on the ability of the employee in deciding promotion. Under this system the best performing employee is promoted.

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PROMOTION BASED ON SENIORITY-CUM-MERIT

As both seniority and merit-based systems of promotion have plus and minus points, may organization use a promotional system based on a combination of seniority and merit.

Before using this system, it is essential that the management clearly state the following details:

1. The minimum length of service to be eligible for promotion. 2. The relative weight age assigned to merit and seniority.

3. The minimum performance and qualifications essential to be eligible for promotion.

PROMOTIONAL POLICIES

Every organization should develop a sound policy regarding promotion of its employees. The promotion policy should formally state the organization’s broad objectives. Employees are likely to be frustrated and restless in the absence of sound promotion policy.

The main characteristics of a good promotion policy are as follows:

 Policy statement: The sound promotion policy has a policy statement. It is statement of the ratio of internal

promotions to external recruitment at each level, the method and procedure of selection, and qualifications desired.

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The policy statement must clearly state whether vacancies are to be filled up primarily from within the organization or by recruitment from outside.

 Basis of promotion: The basis of promotion must be clearly specified. The weight age to seniority and merit must be clearly stated. Ideally, an organization should try to strike a balance between seniority, merit and future potential of the employee.

 Promotion charts: A promotion charts conveys to the

employees the avenues of advancement available to them. In a promotion chart each position is linked to several other positions can be made.

 Communication of policy: The organization should communicate its promotion policy in writing to the

employees and the unions. If the organization is secretive about its promotion policies, employees will become

suspicious of the management’s intentions.

 Career planning: The promotion policy should be in line with employee career planning. This will avoid sudden spurt

promotion followed by drought (long periods when there are no opportunities for promotion.)

 Detailed records: A sound promotion policy ensures that detailed records of employee service and performance are maintained.

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 Employee training: The organization must prepare the employees for promotion through suitable training on the job or in professional institutions or through job rotation

and conferences.

 Consistency: The organization must be consistent in its

promotion policies. It should be applied uniformly regardless of the person concerned.

Diagram

Demand & Supply forecasting techniques Factors affecting HRP-notes in class HRIS-notes in class

VRS-notes in class

Outsourcing-notes in class

Pinkslip/retrenchment /downsizing/separation-notes in class Contracting & subcontracting- notes in class

B. JOB ANALYSIS

The success of any organization depends on the ‘right man on the right job.’ Matching the man to the job and the job to the man is the key to the efficient running of an organization. The purpose of job analysis is to provide a detailed information and description about the job.

Job analysis provides information about why job the job is done, the way it is done, the equipment or machinery used, the skill or training or education needed to perform the job, the

wages paid, the working conditions and any other special or unique characteristics of the job.

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2.3 DEFINITION

Wendell French defines job analysis as “the systematic

investigation of job content, the physical circumstances in which the job is carried out, and the qualifications needed to carry out job responsibilities.”

Methods of collecting job data Merits & Demerits of Job Analysis

2.4 JOB DISCRIPTION AND JOB

SPECIFICATION

Job description and job specification are the two major outcomes of the job analysis process.

JOB DISCRIPTION

Job description is sometimes called as position description. Job description is a recorded statement of the activities of the jobholder. It describes what is done on the job, how it is done

and why it is done. Job description attempts to accurately

portray job content, environment and conditions of employment. It describes every aspect of the job. It is extremely useful in differentiating one job from another. The job description

document usually contains the following information:

 Job identification: Information regarding the job title, code number of the job, department or division where the job is located and so on is provided over here.

 Job summary: It describes the activities or tasks performed on the job.

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 Job duties and responsibilities: This is the heart of the job description. It describes the duties performed and the

frequency of each duty. Responsibilities such as supervision, custody of money, supervision and training of staff are

described in this part.

 Working conditions: This includes the physical environment of the job, risks in the workplace and possibilities of their occurrence and so on.

 Machines, tools and equipment: The name and types of the major machines and tools used on the job are described

here.

 Social environment: This part describes the size of the work group, interpersonal interactions required to perform the job.

 Supervision: It states the extent of supervision given or received, the number of people supervised along with their designation.

 Relation to other jobs: In this part the jobs immediately below and above are mentioned. This provides an idea of the relationship between different aspects of the work.

Job description acts as an important resource for: 1. Describing the job to potential candidates

2. Guiding new employees in what they are specifically expected to do and

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3. Comparing the employee’s actual activities with the ones stated in the job description.

Job description is an important document that helps to identify the job and gives a clear idea of what the job is. A good job

description provides a detailed and clear picture of the whole job. JOB SPECIFICATION

Job specification is also referred to as man specification or employee specification. Job specification is a statement of the minimum qualities required in a candidate for successful

performance of the job. It describes the personal

characteristics that an individual must process in order to perform the job effectively.

Based on the information acquired through job analysis, job specification identifies the knowledge, skills, and abilities needed to do the job effectively. Although the specific items mentioned in the job specification may vary, they usually include following specifications:

1. Qualifications and experience

2. Physical characteristics (height, weight, physique, eyesight, motor coordination)

3. Psychological characteristics (intelligence, analytical ability, concentration, memory, judgment, interests)

4. Social characteristics (emotional intelligence, interpersonal skills, leadership, cooperativeness)

5. Other characteristics (age, sex, family background)

Job specification tells what kind of person is required for a given job. It is an important tool in the recruitment and selection process as it helps the selectors to determine whether a

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the job. Job specification tells what kind

the job. Job specification tells what kind of a person to recruitof a person to recruit and for what qualities that person should be

and for what qualities that person should be tested.tested.

JOB EVALUATION

It is the vital that

It is the vital that organizations pay their employees fairorganizations pay their employees fair and competitive salaries in order to

and competitive salaries in order to attract and retain theirattract and retain their talented and competent employees. If the salary is poor

talented and competent employees. If the salary is poor then thethen the employee will leave the organization for another that will

employee will leave the organization for another that will paypay more. However paying more than what an employee deserves will more. However paying more than what an employee deserves will prove costly and counterproductive.

prove costly and counterproductive.

Job evaluation means to determine the relative worth of Job evaluation means to determine the relative worth of jobs in an organization. It is the pr

jobs in an organization. It is the process of determining the vocess of determining the valuealue of a job in order to fix some salary or wages. Job evaluation is of a job in order to fix some salary or wages. Job evaluation is done on the basis

done on the basis of information obtained through job analysis.of information obtained through job analysis.

DEFINITION

Wendell French

Wendell French defines job evaluation as “a process ofdefines job evaluation as “a process of

determining the relative worth of the various jobs within the determining the relative worth of the various jobs within the organization, so that different wages may be paid to

organization, so that different wages may be paid to jobs ofjobs of different worth.”

different worth.”

OBJECTIVES OF JOB EVALUATION

There are several objectives of job evaluation:

•

• To develop a consistent wage policy.To develop a consistent wage policy. •

• To determine the rate of pay for each job To determine the rate of pay for each job which is fair andwhich is fair and

equitable in relation to other jobs in

equitable in relation to other jobs in the organization orthe organization or industry?

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•

• To ensure that like wages are paid to To ensure that like wages are paid to all qualified employeesall qualified employees

for like work. for like work.

•

• To eliminate inconsistencies and inequalities in wages.To eliminate inconsistencies and inequalities in wages. •

• To establish a rational basis for fixing incentives andTo establish a rational basis for fixing incentives and

different bonus plans. different bonus plans.

•

• To develop a framework for periodic review and revision To develop a framework for periodic review and revision ofof

wage rates. wage rates.

•

• To provide a basis for wage negotiations with trade unions.To provide a basis for wage negotiations with trade unions. •

• To maximize if not eliminate wage discrimination To maximize if not eliminate wage discrimination on theon the

basis of age, sex, caste, religion etc. basis of age, sex, caste, religion etc.

* Process of Job Evaluation: * Process of Job Evaluation:

The basic pr

The basic procedure of joocedure of job evaluation is b evaluation is to compare the cto compare the content of jobsontent of jobs in relation to one another ,

in relation to one another , in terms of their skills or in terms of their skills or responsibresponsibility orility or some other requirement. When comparable factors are

some other requirement. When comparable factors are available jobsavailable jobs can be evaluated more systematically. Each job is compared with all can be evaluated more systematically. Each job is compared with all the others using the same factors ,

the others using the same factors , sub-factorsub-factors, and number of s, and number of degrees.

degrees.

Following steps should be install to take up a job evaluation Following steps should be install to take up a job evaluation programme.

programme.

i)Analyze and prepare Job Description :

i)Analyze and prepare Job Description : This requires the preparation of This requires the preparation of a job description and also an analysis of job requirements for

a job description and also an analysis of job requirements for successful performance.

successful performance.

ii) Select and prepare a Job

ii) Select and prepare a Job Evaluation Plan : This means that a Evaluation Plan : This means that a jobjob must be broken down into its component parts, i.e it

must be broken down into its component parts, i.e it should involve theshould involve the selection of factors, elements needed for the performance of all jobs selection of factors, elements needed for the performance of all jobs for which money is

for which money is paid, determining their value and paid, determining their value and preparing writtenpreparing written instructions for evaluation.

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iii) Classify Jobs: This requires grouping or arranging jobs in a correct iii) Classify Jobs: This requires grouping or arranging jobs in a correct sequence in terms of value to the firm,

sequence in terms of value to the firm, and relating them to the moneyand relating them to the money terms in order to ascertain their relative value.

terms in order to ascertain their relative value.

iV) Install the

iV) Install the ProgProgrammeramme: : This involvThis involves es explaexplaininining g it it to to emploemployeesyees putting it to

putting it to operation.operation. V) Mainta

V) Maintain the Prograin the Programme: mme: Jobs canJobs cannot continot continue withonue without updatiut updatingng new jobs and job changes in obedience to changing conditions and new jobs and job changes in obedience to changing conditions and situations.

situations.

Methods of Job Evaluation : Notes in class Methods of Job Evaluation : Notes in class

RECRUITMENT

The acquisition of human resources for the organization The acquisition of human resources for the organization takes place through the process of recruitment and selection. takes place through the process of recruitment and selection. After the human resource needs of the organization are

After the human resource needs of the organization are

identified through human resource planning, the next step is that identified through human resource planning, the next step is that of recruitment and selection. One of the most

of recruitment and selection. One of the most difficult tasks ofdifficult tasks of the human resource manager is that of recruiting and selecting the human resource manager is that of recruiting and selecting the right kind of people for the

the right kind of people for the organization.organization.

Recruitment is the first step towards procuring qualified Recruitment is the first step towards procuring qualified manpower for the organization. The process of acquiring human manpower for the organization. The process of acquiring human resources begins with recruitment, continues with selection and resources begins with recruitment, continues with selection and ceases with placement.

ceases with placement.

DEFINITION

DeCenzo and Robbins

DeCenzo and Robbins describes recruitment as “the process ofdescribes recruitment as “the process of discovering potential candidates for actual or anticipated

discovering potential candidates for actual or anticipated organizational vacancies.”

organizational vacancies.” It is a linking

It is a linking activity aimed at bringing together those withactivity aimed at bringing together those with jobs to fill and those seeking jobs.

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A number of factors such as

A number of factors such as the size of the organization,the size of the organization, the employment conditions in the community, reputation of the the employment conditions in the community, reputation of the organization, working conditions and salary and benefits offered organization, working conditions and salary and benefits offered by the organization

by the organization affect the recruitment process.affect the recruitment process.

Ideally the recruitment process should ensure that for Ideally the recruitment process should ensure that for every position available in the

every position available in the organization, there are sufficientorganization, there are sufficient numbers of qualified applicants. In very large

numbers of qualified applicants. In very large organization,organization, recruitment is a complex and continuing process

recruitment is a complex and continuing process that demandsthat demands extensive planning and effort.

extensive planning and effort.

SOURCES OF RECRUITMENT

The various sources of recruitment may be broadly The various sources of recruitment may be broadly

classified in two broad categories: Internal and external sources. classified in two broad categories: Internal and external sources. Some organizations draw their human resources internally i.e. Some organizations draw their human resources internally i.e. from within the organization while others draw externally i.e. from within the organization while others draw externally i.e. from outside the organization.

from outside the organization.

INTERNAL SOURCES OF RECRUITMENT INTERNAL SOURCES OF RECRUITMENT

The internal sources of recruitment focus on finding The internal sources of recruitment focus on finding qualified applicants within the

qualified applicants within the organization. The organizationorganization. The organization itself is the best source of applicants for positions above the itself is the best source of applicants for positions above the entry level. The internal sources of recruitment may be of entry level. The internal sources of recruitment may be of thethe following type:

following type:

 Promotion: promoting qualified and Promotion: promoting qualified and experienced employeesexperienced employees may fill vacancies in the organization. Promotion refers to may fill vacancies in the organization. Promotion refers to shifting an employee to a higher position

shifting an employee to a higher position carrying highercarrying higher status, responsibilities and pay. Promotion may be

status, responsibilities and pay. Promotion may be based onbased on performance or seniority depending upon

performance or seniority depending upon the organization’sthe organization’s promotional policies.

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 Transfers: Another common way of filling up vacancies is through internal transfers. An existing employee who is experienced and capable is transferred from one

department in the organization to another. In transfers, the shifting of the employee occurs without any major change in his status and responsibilities.

 Job posting (internal advertisement): A popular method of finding applicants is through job postings or internal

advertisements. Job posting involves announcing job opening to all current employees through notices on the bulletin

boards or through the company newsletters. Some

organizations have developed computerized job posting systems so that employees can obtain information on their on their computer screens.

Job posting carry information about the nature of the position and qualifications needed, and any employees who is interested in the job may apply for the same. Job

announcements ensure that employees are aware of opportunities to move up in the organization.

 Recall or retired and ex-employees: When an organization is not able to find a suitable candidate for a vacancy, former employees of the organization who have retired or had quit the organization may be recalled.

 Employee referrals: Another way to find applicants within the organization is through employee referrals. Informal communications among managers may lead to the discovery of a good candidate for the job. Employee referrals may be for candidates within the organization as well as outside the

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organization. Some organizations even offer rewards to employee whose referrals get selected in the organization.

 Skills Inventories: Many firms have developed computerized skills inventories of their employees information on every employee’s skills, educational background, work history, and other important factors is stored in the organization’s

database. The skill is used to identify employees with the attributes needed for a particular job.

A new development in this area is the Human Resource Information System (HRIS). It is a computerized system that assists in the processing of HRM information. It provides skill inventory information.

The HRIS is designed to quickly fulfill the personnel information needs to the organization. It permits the

organization to track most information about an employee and about jobs and retrieve that when it is needed. HRIS is

extremely useful for storing employment, training and compensation information on each employee.

EXTERNAL SOURCES OF RECRUITMENT

Organizations turn to external sources of recruitment when the internal sources of fall short. New organizations rely largely on external sources to meet their recruitment needs. However even well established organizations turn to external sources when

candidates with the desired skills, knowledge and qualifications are not available in the organizations in order to introduce new blood in the organization.

There external sources of recruitment are:

o Campus recruitment: Educational and training institution

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good source of recruiting qualified and trained personnel. Many educational institutions have placement departments who forward and names of graduating students to

interested organizations and invite them to conduct campus interview.

o Advertisements: Advertisements in journals, newspapers

and magazines with wide circulation is a very popular source of recruitment. However care should be taken in preparing the advertising so that only qualified applicants respond.

The advantage of this method is that a single

advertisement can reach millions of potential recruits. The cost per persons is very low.

As more and more people surf the inter net, the Internet as a medium of advertising is becoming increasingly popular.

o Employment agencies: Private consulting firms carry out

recruiting functions on behalf of organizations. Firms of such kinds are also referred to as head hunting firms.

These firms carry out all the functions of recruitment and selection and provide organizations with candidates as per their requirements. The employment agencies charge a fee for their services. ABC consultants, personnel search are some of the top employment consultants in India.

o Employee recommendations: A very good external source of

recruitment is a recommendation from a current employee. An employee will rarely recommended someone unless he is certain that the individual will perform adequately. This is because recommendations reflect on the recommender and his reputation is at stake.

o Professional bodies: Professional bodies like the institute

of chartered accounts, Institute of company secretary maintain a record of qualified persons in their specialized

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fields. Organizations can approach such bodies to meet their specific needs.

o Deputation: In deputation the services of an experienced

employee of another organization are borrowed for a fixed period of time. This source of recruitment is usually for senior positions in the organization. The person on

deputation serves the borrower organization for a period of time and then returns to the lender organization.

o Poaching: Poaching involves attracting talented and

competent persons from rival organization by offering better terms and conditions of employment with regard to salary, designations, working conditions, additional perks and benefits. Poaching is considered to be unethical as

employees often carry with them sensitive information that could hurt the interests of their former organization.

o Unsolicited or casual applications: Often organizations

receive unsolicited applications for jobs in the form of telephone calls, letters, and e-mails. Organizations do not throw such application but maintain a record of these applications as they serve as a prospective source of manpower.

E – Recruiting

Perhaps no method has ever had as revolutionary an effect on recruitment practices as the Internet. There are respective company websites devoted in some manner to job posting

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activities. Currently, employees can electronically screen

candidates, soft attributes, direct potential hires to a special website for online skill assessment, conduct background checks over the Internet, interview candidates via videoconferencing, and mange the entire process with web based software.

Companies benefit immensely through cost saving, speed

enhancement and extended worldwide candidate reach which the Internet offers. From the job seekers perspective, the Internet allows for searchers over a boarder array of geographic and

company posting than was possible before.

There are negatives associated with Internet recruiting. For example, broader exposure might result in many unqualified applicants applying for jobs. More resumes need to be

interviewed, more e-mails dealt with and specialized applicant tracking software may be needed to handle the large number of applicants who lack access to Internet.

Problems notwithstanding, both job givers as well as job seekers find Internet as the most effective source of recruiting and its usage in the days to come will be all pervasive.

Merits & Demerits – Notes in class

SELECTION

Selection is the process of choosing the most suitable person /s out of all the applicants. It is the process of choosing the required qualifications and skills to perform the job

successfully. Selection involves screening of candidates.

Screening is a process of reducing the number of applicants to a few by way of rejecting the candidates who are not found eligible as per the qualifications prescribed.

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Selection of employees is a managerial decision. It is the management, which fixes the criteria for selection.

DEFINITION

According to Thomas Stone, “selection is the process of

differentiating between applicants in order to identify and hire those with a greater likelihood of success on the job.”

SELECTION PROCEDURE

Organizations make large investments to get the right kind of people; hence, a sound selection procedure is necessary. The objective of the selection procedure is to determine whether an applicant meets the qualifications for a specific job and to choose the applicant who is the most likely to perform well in that job. Although organizations differ in terms of which selection method to use, most of the follow a fairly standardized set of steps. The various steps involved in the selection procedure are as follows:

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SELECTION PROCEDURE

1. Preliminary interview: This is the first step in the selection procedure. The objective of this interview is to discard

those candidates who are totally unqualified for the job. Only suitable candidates are retained for further screening.

Preliminary interview saves time and efforts of both the organization and the candidate. It avoids unnecessary

waiting for candidates who have no chance of being hired. The organization too benefits, as it does not waste time and money on further processing unsuitable candidates.

The preliminary interview is the first contact of an individual with the organization. Hence it is vital that the

PRELIMINARY INTERVIEW APPLICATION BLANK SELECTION TEST EMPLOYMENT INTERVIEW MEDICAL EXAMINATIONS FINAL SELECTION REFERENCE CHECKS

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staffs who are involved in this step are extremely

courteous, receptive and polite with the rejected candidate. The candidates who seem suitable are given the application blanks to fill.

2. Application blanks: This is a very popular method of getting information from the candidate. The candidates are

supplied a blank specially prepared application form for filling it with information relating to educational

qualifications, age, experience, training, past experience, hobbies, interests etc.

While some organizations have specially prepared

application forms, others ask candidates to prepare on their own.

The application form has several benefits:

• It helps to eliminate those candidates who are lacking in

education and experience.

• It helps in formulation questions for the interview.

• Information obtained through application forms can be used

for future reference.

3. Selection test: The selection or employment test is the next step in the selection procedure. A variety of psychological tests are used to obtain information about various aspects to an individual’s behavior, performance and attitudes. Use of such tests is becoming increasingly

popular.

The different tests help in:

• Identification of differences among individuals.

• Identification of the maximum and minimum

potential of the candidates.

• Identification of skills, abilities, talents,

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4. Employment interview: The interview is a widely used tool of selecting prospective candidates for the organization. It gives the employer and prospective employee an opportunity to meet each other.

The selection or employment interview serves three purposes:

• It is an opportunity to obtain additional information

about the candidate and determine his suitability for the job.

• It provides information to the candidate about the

organization, the specific job for which he has applied and personnel policies.

• It helps to establish a friendly relationship with the

candidate and motivate suitable candidates to join the organization.

• Although the employment interview is very popular,

doubts have been raised as to its reliability in selection of the right candidate.

5. Medical examination: Applicants who have successfully passed the above steps are now sent foe a medical

examination. Medical examination is for the following reasons:

• It helps to determine whether the candidate is mentally and

physically fit to perform the job.

• It prevents employment of employees suffering from

contagious diseases.

• It saves expenditure that the organization may have to

incur for medical treatment of the candidate.

6. Reference checks: Applicants are frequently asked to provide the names and address of two or three persons who

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know them well. These persons are commonly referred to as referees or references. These persons may be previous

employers, heads of educational institutions or other public figures.

The organization contacts the referees through mail or by telephone to know more about the candidate’s

character, skills, potentialities etc. The feedback and the comments of the referees influence the selection of the candidate. Candidates who are evaluated positively by referees are selected while those who are evaluated negatively are rejected.

7. Final selection: The candidates who have cleared all the above obstacles are recommended by the human

resources department to the concerned department for their final approval.

On the final approval of the concerned department, the appointment letter is issued to the candidate. The appointment letter contains details regarding the pay scale, the post, the rank, other terms and conditions of employment and the date by which the candidate should join the organization. Sometimes a contract is signed between the candidate and a representative of the

organization.

INDUCTION

When a new employee joins the organization, the first few days are ones of great uncertainty. Even the calmest and most competent employee feels a little nervous, anxious and insecure.

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This is because he is unfamiliar with the new surroundings, new coworkers and new job procedures. Hence, most organizations offer some kind of an induction program to help new employees get acquired with the company and make a productive beginning on the job. Induction programs are also commonly referred to as

orientation programs.

DEFINITION

Michael Armstrong defines induction as “the process of receiving and welcoming employees when they first join the company and giving them the basic information they need to settle down quickly and happily and start work.”

Induction is the process of familiarizing of the new employee with the job and the organization. It includes introducing the new employee to his or her work unit. According to Armstrong, induction has five main aims:

1. To put new employee at ease.

2. To create employee interest in the job and the organization.

3. To provide basic information about working conditions. 4. To indicate the standards of performance and

behavior expected from the employee.

5. To tell the employee about training arrangements and how he or she can progress in the company.

3.6 Importance of induction

Induction is extremely important as a new worker often finds himself completely at sea in the workplace. Induction

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assumes even greater importance when the new employee is new to the town / city or in some cases to the country.

 Smooth entry: To make the entry of the new employee in to the organization a smooth one as initially everything is

strange and unfamiliar to him.

 Favorable attitude: To establish a favorable attitude to the company in the mind of the new employee so that he will stay on in the organization.

 Quick adjustment: To obtain effective output from the new employee in the shortest possible time.

 Reduce employee turnover: Research has found that employees are far more likely to resign during their first few months after the joining the organization. Induction reduces the likelihood of employees leaving the organization quickly.

 Increasing commitment: A proper induction makes the feel that the organization is worth working for. This increases employee commitment as he identities himself with the organization, wants to stay with and is prepared to work hard on behalf of the organization.

 Understand organizational norms: Induction programs convey to the new employee what the organization expects from him in terms of behavioral norms and the values that he should uphold.

Induction provides an opportunity to inform people of ‘the way things are done here.’ This reduces any doubts or misconceptions that the new employee may be holding.

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 Develop relationships: Induction helps to foster a close and cordial relationship between the newcomers and the old

employees and their supervisors.

 Other information: Induction serves as an opportunity to provide other necessary information such as the location of cafeteria, toilets, rest periods, leave rules.

ENTRY INTERVIEW FOR EFFECTIVE INDUCTION OF NEW ENTRANT

Objectives

 To ensure introduction of the new entrant to the

institution, its culture, tradition, ethos, and work ethics.

 To have a formal interaction between the head of the branch / office and the new entrant in order to have introduction to the job and colleagues.

 To provide psychological assurance that he will be looked after and cared in the new place.

 Help the employee to shed apprehensions, if any, and feel free in the environment.

 To initiate the socialization process of the employee in the organization on a positive note, so that the process of

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SYSTEM

 The branch manager / section In-charge conducts the entry interview of the entry interview of the new

employee on the first first day immediately on his joining the Branch / office.

 The interview has to be conducted in a friendly

atmosphere and the employee is made to feel at ease.

 Through the interview the manager elicits the

background of the employee – family and profession, his goals in life, his expectations, his capabilities and potential.

 The manager volunteer’s information about the bank’s history, its rich heritage and culture, its mission and goals to make the employee aware of the duties

expected from him. He also gives general information about the Branch / office, the people working there and also the place.

 The manager finds out the needs of the employee at the new place and helps him to settle.

 The manager to introduce the new employee to his colleagues.

 A handbook “step into the family for an enriching partnership” is given to the employee.

TRAINING AND DEVELOPMENT

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A well-trained workforce is the greatest asset of an

organization. After the employee is selected, the next important task for the organization is to see that the employee adjusts as quickly as possible on the job and performs his job efficiently. In order to do so, it is essential that the employee is properly

trained and prepared for the tasks that lie ahead.

An organization cannot function effectively when its employees are not trained well. Lack of training is often the cause of: Poor productivity, Errors and wastages, Unsafe working practices and Dissatisfaction at work.

Training is basically the management of learning. The objective of training and development is to raise the level of performance in one or more aspects. This is achieved either by providing new knowledge and information relevant to a job or by teaching new skills or by imbibing an individual with new attitudes, values, motives and other personality characteristics.

DEFINITION

According to Edwin Flippo, training is “the act of increasing the knowledge and skill of an employee for doing a particular job.”

Training prepares employees to perform their present job even better and more efficiently. It also prepares the employee for higher positions with increased responsibilities.

TRAINING METHODS

A variety of methods have been developed for the training of