10 hrm notes
TRANSCRIPT
Human Resource Management III Semester BBM
CHAPTER - 1
Human Resource Management
Meaning of HRM
HRM means employing people developing their resources, utilizing, maintaining &
emphasizing their services in tune with the job & any requirements with a view to
contribute to the goals of the organization, individual & the society
Managing (P,O,D,C) the function of employing, developing & emphasizing human
resources resulting in the creation & development of human relation with a view to
contribute proportionately (due to then) to the organization, individual & social goals.
Importance of HRM
1) Human Resources in the Nation Well being
2) Man vis-a-rise machine
3) Personal Management & General management
4) Human Resources System is a Central sub-system
(i) Social Significance
(ii) Professional Significance
(iii) Significance of Individual Enterprises
Objectives of HRM
(i) To create & utilize on able & motivated work force.
(ii) To establish & maintain sound organization structure & desirable working
relationship among all the members of the organization.
(iii) To secure the integration of individual & group within the organization.
(iv) To create facilities & opportunities for individual group development.
(v) To attain on effective utilization of HR in the achievement of organization goals.
Brindavan College – Department of Commerce & Management Mr. Syed Kazim
Human Resource Management III Semester BBM
(vi) To identify and satisfy individual and group needs by providing adequate and
equitable wages, incentives, employee benefits and social security & measures for
challenging work prestige, recognition, security, status, etc
Functions of HRM
Managerial Functions
1. Planning
2. Organizing
3. Directing
4. Controlling
Operative Functions
1) Employment
(i) Job Analysis
(ii) HRP
(iii) Recruitment
(iv) Selection
(v) Placement
(vi) Induction & Orientation.
2) HRD
(i) PA
(ii) Training
(iii) Management Development
(iv) Career Planning & Development
(v) Internal Mobility
(vi) Transfer
(vii) Promotional
(viii) Promotion
(ix) Change & Management Development.
Brindavan College – Department of Commerce & Management Mr. Syed Kazim
Human Resource Management III Semester BBM
3). Compensation
(i) Job Evolution
(ii) Wager & Salary Administrator
(iii) Incentives
(iv) Bonus
(v) Fringe Benefits
4) Human Relation
(i) Motivation & Job satisfaction
(ii) Morale
(iii) Communication
(iv) Leadership
(v) Work Environment, Industrial Accidents, Safety & Health
Industrial Relations
(i) Indian Labour Market
(ii) Industrial Relations
(iii) Trade Unionism
(iv) Collective Bargaining
(v) Industrial Conflicts
(vi) Worker’s Participation in Management & Quality circles
Recent Traders in HRM
(i) Quality of work life & Employment.
(ii) Total Quality HRM
(iii) HR According Audit & Research
(iv) Recent Technique in HRM.
Brindavan College – Department of Commerce & Management Mr. Syed Kazim
Human Resource Management III Semester BBM
Process of HRM
(i) Objectives & Organization of HRM
(ii) Strategic HRM
(iii) Employment, HRD, Compensation, Human Relations & Recent Trade in HRM
System & Techniques to study HRM
(Sub – Systems of HR)
(i) Recruitment
(ii) Development
(iii) Compensation
(iv) Social Security Measures
(v) Strategic Issues
(vi) Industrial Relations
Techniques of HRM
(i) Job Design – Engineering Approach, Human Approach, Job Characteristics Approach, Job
Rotation, Job Enlargement & Job Enrichment
(ii) Recruitment – Promotions, Transfers, Present Employment, Scouting, Advertisement, Walk-
in, Consult – in, Head Hunting, Body Shopping, Business Alliances, Tele Recruitments.
(iii). Selections – Application works, Test, Interviews,
(iv) HRD – PA, Training, Management Development, Career Development.
(v). PA – Graphic Rating, Seals, Ranking, Paired Comparisons, Forced Distribution, Check List,
assessments Interest.
(vi). T & D – Vestibule Training, Role Play, Objective, Programmed Instruction, Job Rotation,
Coaching, Job Instruction.
(vii). Compensation – Job evaluation, Salaries in Comparable Organization. Ability to Pay,
Productivity, Cost of Living.
Role of a HR Manager
Brindavan College – Department of Commerce & Management Mr. Syed Kazim
Human Resource Management III Semester BBM
(i). The Conscience Role (Reminds the Management of Moral & Obligation)
(ii). The Counselor (Married, Health, Child Education, Marriage, Rental)
(iii). The Mediation (Peace Maker)
(iv). The Spokesman
(v). The Problem Solver
(vi). The Change Agent (Introducer Change)
As a Specialist
(i) As a Source of Help
(ii) As a Change Agent
(iii) As a Controller
Duties & Responsibilities of HR Manager
(i). Preparing, Modifying & Up Dating Job Analysis
(ii). Advising the Line Manager Regarding the Latest Developments.
(iii). Helping the Line Manager in Planning for HR
(iv). Advising the Line Manager regarding the impact of multi skilling, down rising & de-layering of
HRP
(v). Searching for prospective employer at various sources.
(vi). Identifying employment agencies and entrusting recruitment function to them, if it is
economical and desirable
(vii). Conducting various selections tests & Interviews.
(viii). Conducting Induction Programs
(ix). Helping the LM in identifying the Training needs.
(x). Organizing the Training & Management Development benefits.
(xi). Fixing & Advertising the salaries of employee benefits.
(xii). Introducing various techniques of motivation.
(xiii). Preparing the employees in quality improvement programmer
(xiv). Maintaining close Relationship with Individual employee.
(xv). Conducting Collective & Individual bargaining
Brindavan College – Department of Commerce & Management Mr. Syed Kazim
Human Resource Management III Semester BBM
(xvi). Administering employee benefit programmers
(xvii). Encouraging the employee to form into teams & develop
(xviii). Assisting the LM in promotion, transfer, demotion
(xix). Conducting surveys & research studies.
(xx). Advising, Assisting, Contributing in all level of strategic.
(xxi). Maintaining & Enhancing sound Human relations.
Typical Organizational set-up of HR Department
Brindavan College – Department of Commerce & Management Mr. Syed Kazim
Managing Director
Chief Manager HR
Chief Manager Maketing
Chief Manager Finance
Chief Manager Production
Manager HRD
Manager Employment
Manager IR
Manager Production
Assistant Manager Training
Assistant Manager PA
Assistant Manager Career Planning &
Development
Assistant Manager Management Development
Human Resource Management III Semester BBM
CHAPTER - 2
Human Resource Planning, Recruitment, Selection & Placement
Meaning and Objective of HRD
Deciding the number and type of HR required for each job, unit and the total company for a particular future date in order to carry out organization activities.
Objectives
1. To recruit and retain the HR2. To foresee the employee turnover and make arrangements for minimum turnover.3. To meet the needs of the expansion and diversification.4. To improve the standards, skills, knowledge, ability, discipline, etc…5. To foresee the impact of technology on work, existing employer and further HR
requirement.6. To assess the surplus on shortage of HR and take necessary action.7. To maintain congenial IR by maintaining optimum level and structure of HR.8. To minimize imbalance caused due to non-availability of HR.9. To make the best use of its HR.10. To eliminate the cost of HR.
Importance
1. HRD evaluates and even modifies the organization strategic plan.2. It provides a clear picture of HR supply for various sources.
Brindavan College – Department of Commerce & Management Mr. Syed Kazim
Human Resource Management III Semester BBM
3. It enables the organization to recruit the prospective employees from the most evitable source.
4. It helps the organization to implement its strategies effectively without risk and uncertainties.
5. Due to globalization and IT demand ever changing skills on the part of HR.6. HR plays an important role in projecting these events and preventing uncertainties
in having right size of HR.7. HR predicts these changes and makes necessary adjustments in meeting HR
requirement of an organization.
Benefits of HRD
1. It checks the corporate plans of the organization.2. It offsets uncertainty and change.3. It provides scope for advancement and development of employees through T and D.4. It helps to anticipate the cost of salary enhancement, better benefits, etc…5. It helps to anticipate the cost of salary, benefits and all the cost of HR.6. To foresee the changes in values, aptitude and attitude of HR.7. To foresee the need for redundancy and plan to check it. 8. To plan for physical facilities, working conditions and the volume of bring benefits.9. It gives an idea of the type of test to be used and interview in selection.10. It focuses the development of various sources HR to meet the organization needs.11. It helps to take steps to improve HR contributions in the form of increased productivity,
sales, turnovers, etc…12. It facilitates the control of all the function, operations, contribution and cost of HR.
Meaning of Recruitment
A process to discover the sources of man power to meet the requirements of the staffing schedule and to employ effective measures for attracting that man power in adequate numbers to facilitate effective selection of an efficient workforce.
Meaning of Selection
Brindavan College – Department of Commerce & Management Mr. Syed Kazim
Human Resource Management III Semester BBM
It is the system of functions and devices adopted in a given company to ascertain whether the candidate’s specifications are matched with the job specification and requirement or not.
Meaning of Placement
The determining of the job to which an accepted candidate is to be assigned and his assignment to that job. It is a matching of what the supervisor has reason to think he can do with the job demand (job requirements), it is a matching of what he imposed and what he offered in the form of pay-roll, companionship with others, promotional possibilities, etc…
Methods of Recruitment
I - Traditional methods of Recruitment
1. Internal Methods
i) Present permanent employees
ii) Present temporary on casual employees
iii) On retired employees
iv) Dependents of diseases, disabled, retired and present employees
2. External Methods
i) Campus recruitment
ii) Private employment agencies\consultants
iii) Public employment exchange (government setup)
iv) Professional organization (Maintain database)
v) Data bank (Employment exchange)
vi) Casual applicants (General)
Brindavan College – Department of Commerce & Management Mr. Syed Kazim
Human Resource Management III Semester BBM
vii) Similar organization
viii) Trade unions (Common to the T.V leaders)
II - Modern methods of Recruitments
1. Employee referrals
2. Walk-Ins
3. Consult-Ins
4. Head identity (top people)
5. Body Shopping (Professional organization develops a pool of HR)
6. Mergers and acquisitions
7. E-Recruitment
Selection Methods
The selection is a single act but is essentially a series of methods or stages by which different types of information can be secured through various selection techniques.
Brindavan College – Department of Commerce & Management Mr. Syed Kazim
Job analysis
HR Plan
Recruitment
1. Development bases of Selection
2. Application\Resume\CV\Biodata
3. Written examination
4. Preliminary Interview
5. Business Games
6. Test
7. Final interview
8. Medical examination
9. Reference check
10. Hire manager decision
11. Job offer
12. Employment
Human Resource Management III Semester BBM
Uses of tests in selection
Tests help the managers in evaluating the candidate’s suitability to the job. Tests measure the nature and degree of candidate’s psychological potential. Tests help in judging the ability of a candidate in a given job situation. Tests helps in ranking the candidates applied for a job. Tests are valuable in determining subsequent success on the job. Tests results are more valuable in determining candidate’s awareness. Tests are helpful in picking a most likely successful group from a large group. Tests are useful when other selection devices fail in providing valuable
information. Tests examine the candidate’s intelligence, mechanical aptitude, clerical
aptitude, job knowledge, interest in the job, individual and group decision-making and personality.
Troubles involved in Placements
Employee expectation Job expectation/description
Brindavan College – Department of Commerce & Management Mr. Syed Kazim
Assess the fit between the job and the
candidate
Human Resource Management III Semester BBM
Change in technology Change in organization structure Social and psychological factors
CHAPTER - 3
Training & Induction
Meaning of Training
Training is the organized procedure by which people learn knowledge & skill for a definite
purpose
Meaning of Induction
Induction is the process of welcoming on employee when he first joins a company & giving him
the basic info he needs to settle down quickly & happily & start work
Objective & Purpose of Introduction
1 Putting the new employee at the ease
2 Creating interest in his job & the company
Brindavan College – Department of Commerce & Management Mr. Syed Kazim
Human Resource Management III Semester BBM
3 Providing basic info about working arrangements
4 Indicating the STD of performance
5 Informing him about training facilities
6 Creating the feeling of social security
7 Minimizing the reality stock
Benefits of Training
How Training Benefits the Organization
1) leads to improved profitability and/or more positive attitudes towards profits
2) Improves the job knowledge and skills at all levels of the organization
3) Improves the morale of the work force
4) Helps people identify with organizational goals
5) Helps create a better corporate image
6) Fosters authenticity, openness and trust
7) Improves the relationship between boss and subordinate
8) Aids in organizational development
9) Learns from the trainee
10) Helps prepare guidelines for work
11) Aids in understanding and carrying out organizational policies
12) Provides information for needs in all areas of the organization
13) Organization gets more effective in decision-making and problem solving
14) Aids in development for promotion form within
15) Aids in developing leadership skill, motivation, loyalty, better, attitudes, and other aspects
that successful workers and managers usually display
16) Aids in increasing productivity and/or quality of work
17) Helps keep costs down in many areas, e.g. production, personnel, administration etc.
18) Develops a sense of responsibility to the organization for being competent and knowledge
19) Improves labor – management relations
20) Reduces outside consulting costs by utilizing competent internal consulting
Brindavan College – Department of Commerce & Management Mr. Syed Kazim
Human Resource Management III Semester BBM
21) Stimulates preventive management as opposed to putting out fires
22) Eliminates sub-optimal behavior (such as hiding tools)
23) Creates an appropriate climate for growth and communication
24) Aids in improving organizational communication
25) Helps employees adjust to change
26) Aids in handling conflict, thereby helping to prevent stress and tension
Benefits to the Individual which in turn ultimately should benefit the organization
1) Helps the individual in making better decisions and effective problem solving
2) Through training and development, motivational, variables, of recognition , achievement,
growth, responsibility, and advancement are internalized and operationalised
3) Aids in encouraging and achieving self-development and self confidence
4) Helps a person handle stress, tension, frustration and conflict
5) Provides information leadership knowledge , communication skills and attitudes
6) Increase job satisfaction and recognition
7) Moves a person towards personal goals while improving interactive skills
8) Satisfies personal needs of the trainer (and trainee)
9) Provides the trainee an avenue for growth and say in his/her own future
10) Develop a sense of growth in learning
11) Helps a person develop speaking and listening skills; also writing skills when exercise are
required
12) Helps eliminate fear in attempting new tasks
Benefits in personnel and human relation, Intra and Inter-group Relation and policy
Implementation
1) Improves communication between groups and individuals
2) Aids in orientation for new employees and those taking new jobs through transfer or
promotion
3) Provides information on equal opportunity and affirmative policies
4) Provides information other governmental laws and administrative polices
Brindavan College – Department of Commerce & Management Mr. Syed Kazim
Human Resource Management III Semester BBM
5) Improve morale
6) Makes organization polices , rules and regulations viable
7) Improves inter-personal skills
8) Builds cohesiveness in groups
9) Provides polices a good climate for learning, growth and co-ordination
10) Makes the organization a better pace to work and live
Need for training
No organization can get a candidate who exactly matches with the job & the
organization requests. Hence , sharing is important to develop the employee &make
him suitable for the job
Training towards value addition of the company through HRD
Job &organization requirements are not static , they are changed for time to time in
view of technology advancement &change in the awareness of total quality &
productivity Mgt (TQPM)
The Objective of TQPM can be achieved only through training which develops human
skills & efficiency
Organizational efficiency, productivity , progress & development to a greater
depend on training
If the required training is not provided, it leads to performance failure of the employees
Organizational Objective like viability stability & growth can also be achieved through
training
Training is important as it constitutes a significant part of Mgt control
Training enhances 4Cs, competence, commitment, creativity &constitutes for the
organization
Identification of training needs
Training need one identified on the basis of organization analysis &job analysis manpower
analysis. Training programme, training methods & some content are to be planned on the
Brindavan College – Department of Commerce & Management Mr. Syed Kazim
Human Resource Management III Semester BBM
basis of training needs. Training needs are those aspects necessary to perform the job in an
organization in which employee in lacking attitude on aptitude, knowledge &skills
Training needs= IOB& ORG request – employee specification
Assessment Method
1) Organizational Requirements/weaker
2) Department Requirements/weaker
3) Job specification &employee specification
4) Identifying specific problem
5) Anticipating future problem
6) Management requests
7) Observation
8) Intension
9) Group Conferences
10) Questionnaire surveys
11) Test or Examination
12) Check lists
13) Performance Appraisal
Methods of training
On the job
1) Job rotation(rotated from job to job)
2) Coaching(placed under a supervision)
3) Job instruction(training through step by step)
4) Committee assignment(GP of trainee to solve the problem)
Off the job
1) Vestibule training(actual work condition)
Brindavan College – Department of Commerce & Management Mr. Syed Kazim
Human Resource Management III Semester BBM
2) Role playing(action doing &Practice)
3) Lecture method
4) Conference on discussion
5) Progressed instruction (info presented in a sequence)
Chapter - 4
Performance Appraisal &compensation
Meaning of PA
PA is a method of indicating the behavior of employees in the work spot normally including
both the quantitative &qualitative aspect of job performance.
Brindavan College – Department of Commerce & Management Mr. Syed Kazim
Human Resource Management III Semester BBM
Objectives of PA
(i) To create & maintain a satisfactory level of performance.
(ii) To contribute to the employee growth & development through training, self & mgt
development programmes.
(iii) To help the superiors to have a proper understanding about their subordinates.
(iv) To guide the job changes with the help to continuous ranking.
(v) To facilitate fair & equitable compensation based on performance.
(vi) To facilitate for testing & validating selection tests, interview techniques through
comparing their scores with PA ranks.
(vii) To provide information of making decisions regarding lay-off, retrenchment.
(viii) To ensure organizations effectiveness through correcting the employee for standard
&improved performance &suggesting the change in employee behaviour.
Methods of PA
I. Traditional Methods
1) Graphic rating scales.
2) Ranking method.
3) Paired comparison method.
4) Forced distribution method.
Brindavan College – Department of Commerce & Management Mr. Syed Kazim
Human Resource Management III Semester BBM
5) Checklist method-
Simple checklist
Weighted checklist
Critical incident method
6) Essay or Free Form Appraisal.
7) Group Appraisal.
8) Confidential Reports.
II. Modern Methods
1) Behaviourally Anchored Rating Scales.
2) Assessment Centre.
3) Human Resources Accounting.
4) Management by Objectives.
5) Psychological Appraisals. (Employee potential)
Limitations of PA
1) Rating Biases
Halo effect
The error of the central tendency(rating around mid point)
The Leniency & Strictness
Personal Prejudice
The Recency Effect (based on recent action)
ii) Failure of the superiors in conducting PA.
iii) Most part of the appraisal is based on subjectivity.
Brindavan College – Department of Commerce & Management Mr. Syed Kazim
Human Resource Management III Semester BBM
iv) Less reliability & validity of the PA techniques.
v) Negative ratings affect interpersonal relationship.
vi) Influence of external & uncontrollable factors.
vii) Feedback & post appraisal interview.
viii) Mgt emphasizes on punishment rather than development.
ix) Some ratings based on given work.
x) Relationship b/w appraisal rates & performance after promotion not significant.
xi) Some superiors complete appraisal rate in few minutes.
xii) Absence of inter-rater reliability.
xiii) The situation was unpleasant in the feedback interview.
xiv) Superiors lack that tact of offering suggestions.
xv) Superiors were after confused due to many objectives of PA.
Principles and techniques of fixation
1) Remuneration in comparable industries.(prevailing rates)
2) Firm’s ability to pay.
3) Cost of living.
4) Productivity.
5) Union Pressure & strategies.
6) Govt. Legislation.
7) Job evaluation.
Brindavan College – Department of Commerce & Management Mr. Syed Kazim
Human Resource Management III Semester BBM
Job Evaluation Types
Non- Quantitative
1) Ranking method
a) Simple rating
b) Rating the key jobs
c) Oaried comparison
d) Single factor ranking method
2) Job classification & grading method
Quantitative
1) Point rating method
2) Factor comparison method
Compensation
Meaning of Compensation
Compensation is the remuneration paid by the mgt to an employee for his contribution
to the organization.
Compensation includes wages/salaries, incentive payment, bonus & social security or
welfare benefits or fringe benefits.
Objectives of compensation
1) To acquire qualified competent personnel
Brindavan College – Department of Commerce & Management Mr. Syed Kazim
Human Resource Management III Semester BBM
2) To retain the present employees
3) To secure internal & external equity
4) To ensure desired behavior
5) To keep labour & administrative costs
6) To protect in public as progressive employers(wage legislation)
7) To pay according to the content &difficulty
8) To facilitate pay roll(budgeting & salary control)
9) To simplify collective bargaining procedures & negotiations
10) To promote organization feasibility
Chapter - 5Brindavan College – Department of Commerce & Management Mr. Syed Kazim
Human Resource Management III Semester BBM
Promotion & Transfer
Meaning
Promotion is advancement of an employee to a better job-better in term of greater
responsibility more prestige or status, greater skills & promotion increased rate to pay or salary.
Bases of Promotion
Org adopt different bases of promotion upon their nature, size, mgt, etc. generally they
may combine two or more basis of promotion.
The well established bases of promotion are shortly & merit.
The other basis of promotion which is well practiced in all type of org under different
shades in favoritism.
Org should have the idea of effectiveness of each basis in promoting the right man to
the job.
Types of Promotion
As discussed earlier, promotion is of three types viz. Vertical promotion, upgradation and
Dry promotion.
i. Vertical Promotion: Under this type of promotion, employee is moved to the next
higher level, in the organization hierarchy with greater responsibility, authority, pay and
status.
ii. Upgradation: Under this type of promotion, the job is upgraded in the organizational
hierarchy. Consequently, the employee gets more salary, higher authority and
responsibility. For example, the job of medical officer in railway which was in Group C is
upgraded as Group B position.
Brindavan College – Department of Commerce & Management Mr. Syed Kazim
Human Resource Management III Semester BBM
iii. Dry Promotion: Under the promotion, the employee is moved to the next higher level in
the organizational hierarchy with greater responsibility, authority and status without
any increase in salary.
Purpose of Promotion
Organizations promote the employees with a view to achieve the following purpose:
i. To utilize the employee’s skill, knowledge at the appropriate level in the
organizational hierarchy resulting in organizational effectiveness and employee
satisfaction.
ii. To develop competitive spirit and inculcate the zeal in the employees to acquire the
skill, knowledge etc. required by higher level jobs.
iii. To develop competent internal source of employees ready to take up jobs at higher
level in the changing environment.
iv. To promote employee’s self development and make them await their turn of
promotions. It reduces labour turnover.
v. To promote a feeling of content with existing conditions of the company and a sense
of belongingness.
vi. To promote interest in training, development programmes and in team
development areas.
vii. To build loyalty and to boost morale.
viii. To reward committed and loyal employees,
ix. To get rid of the problem created by the leaders of workers’ union by promoting
them to the officers’ levels where they are less effective in creating problems.
Having discussed the purpose of promotion, now we study the bases of promotion.
Brindavan College – Department of Commerce & Management Mr. Syed Kazim
Human Resource Management III Semester BBM
Bases of Promotion
Organization adopts different bases of promotion depending upon their nature, size,
management etc. Generally, they may combine two or more basis of promotion. The well-
established bases of promotion are seniority and merit. The other basis of promotion which is
well practiced in all types of organizations under different shades of promotion which is well
practiced in all types of organization under different shades is favoritism.’ Organizations should
have the idea of effectiveness of each basis in promoting the right man to job.
Meaning of Transfer
A lateral shift causing moment of individuals from one position to another usually without
involving any market change in duties, responsibilities, skills needed or compensation.
Reason of Transfer
1. To meet the organization requirement.
2. To satisfy the employees need.
3. To utilize employees skills, knowledge-etc.
4. To improve employees background by placing him in different jobs of various department.
5. To correct inter-personal conflict
6. To adjust the workforce of one section / plant in other section / plant during day off.
7. To give relief to the employees who are overburdened or doing complicated or risky work
for a long period.
8. To punish the employees who isolate the disciplinary rules.
9. To help the employees whose working home or place of work is inconvenient to them.
10. To minimize fraud, links, etc.
Brindavan College – Department of Commerce & Management Mr. Syed Kazim
Human Resource Management III Semester BBM
Types of Transfer
1. Production Transfer
2. Replaced Transfer
3. Rotation Transfer
4. Shift Transfer
5. Remedial Transfer
6. Penal Transfer
Right Sizing of Workforce
Right size of the workforce refer to employing & maintaining exact number of employer with
required skill, abilities & knowledge to perform the existing number of jobs in a organization.
Clear & systematic job analyses – job specification & job description provide the basis for
arriving at an exact number of employees required.
Right Sizing of Workforce
Right size of work force refers to employing and maintaining exact number of employees
with required skills, abilities and knowledge to perform the existing number of jobs in an
organization. Clear and systematic job analysis, job specification and job description provide the
basis for arriving at an exact number of employees required. In addition, the level of
technology, phase of information technology general levels of ability, skills, intelligence and
knowledge of the people and financial ability of the company in employing multi-skilled people
determine the number of people required to perform existing jobs. Multi-skilled and efficient
people help in reducing the number of jobs. For example, a candidate with Chartered Brindavan College – Department of Commerce & Management Mr. Syed Kazim
Human Resource Management III Semester BBM
Accountancy and company secretary qualifications can perform the jobs of an accountant and
company secretary.
Most of the public sector companies employed the people more than the exactly required
number due to political pressures, nepotism and favoritism. Consequently they suffer from the
problem of overstaffing. Overstaffing results in high labor cost, high cost of production in
addition to organizational politics. Employees without optimum work load resort to
organizational politics and/dysfunctional activities. This ultimately affected the profitability of
the public sector companies. As such the public sector companies retrenched the employers by
downsizing the human resources. Thus experience influences the companies to plan for and
practice the tight size of employees.
Need for Right Sizing
Right sizing is needed for the companies as it helps in many ways. The need for right
sizing includes:
To have exact number of employees as per the job analysis, job description and job
specification exercise of the company.
To minimize the cost of human resources and thereby to contain the cost of production
by eliminating unnecessary costs.
To minimize organizational politics.
To reduce the dysfunctional activities of the employees.
To maximize productivity by enhancing employee performance.
To develop the employees in latest skills and abilities.
To avoid industrial relations issues and problems.
To avoid formation of trade unions and its consequence.
To reduce maintenance activities of various employees facilities and benefits like
housing, canteen, transportation, medical and recreational.
Brindavan College – Department of Commerce & Management Mr. Syed Kazim
Human Resource Management III Semester BBM
To maintain sound human relation s with the exactly required number of employees.
To create a sense of belongingness with the employees by maintaining close and
personal relations.
To improve employee collaborations & involvement in management.
Chapter – 6
Work Environment
Meaning
The organization has to create conducive environment at the work place to make him
committed to the company. Work environment includes various internal and external
factors which exist at the work place. These factors influence the employee mind and
body.
Fatigue
The term fatigue is defined as decrease in the capacity or efficiency or ability of a person
to carry out the work because of previous work.
Fatigue is also defined as “the general state of an employee resulting from continuous
work both physical and mental”.
Implications of fatigue
1. It is generally psychological in nature. When the employee works continuously without
rest human energy is consumed. Consequently, lactic acid is accumulated in the blood
resulting into break-down of tissues.
2. Fatigue has psychological, emotional and behavioral aspects.
3. Fatigue reduces the capacity of a person to carry out the work leading to fall in efficiency
and production.
Causes of Fatigue
Brindavan College – Department of Commerce & Management Mr. Syed Kazim
Human Resource Management III Semester BBM
1. Long hours of work without adequate rest.
2. Inconvenient lay-out of plant, equipment, machines and other ancillary facilities.
3. Inconvenient lay-out of furniture and computers.
4. Lack of adequate space between one worker and another worker.
5. Poor lighting, ventilation and heavy noise.
6. Allotment of the work to the employee in which he is disinterested.
7. Absence of strong physique of the employee.
8. Absence of the studies of ergonomics in lay-out.
9. Heavy demands of work on employee by his superiors.
10. Placing the work in isolation without taking the social needs of the employee into
consideration.
11. Autocratic leadership style of the leaders.
12. Either under motivation or excessive motivation.
13. Poor or less quality of raw materials.
14. Traditional technology, poor machinery and tools.
15. Bureaucratic organizational structure and excessive controls.
Symptoms of fatigue
Fatigue is tiredness. It reduces efficiency and output for a given level of input. Fatigue results in
psychological changes. They are:
1. Fatigue reduces glycogen or sugar in the blood and consequently lactic acid is
accumulated in the blood.
2. Nerve and muscle cells functions are changed.
3. Changes in the nerve fibre to conduct itself normally.
4. Changes in the brain.
5. Normal fatigue is simple tiredness. It can be overcome by rest.
6. Cumulative fatigue is caused due to overwork and overstrains.
Monotony
Brindavan College – Department of Commerce & Management Mr. Syed Kazim
Human Resource Management III Semester BBM
Monotony is a state of mind caused by performing repetitive tasks. It implies no
emotional dislike. Job enlargement mostly causes monotony. Job enlargement
overloads the job horizontally.
It is a state of mind or an attitude of a worker towards his job.
Boredom
Boredom is tinged with emotional distaste and is accompanied by a corresponding
attitudinal outlook.
Thus, boredom is heavily affected by factor like personality, attitude, aptitude or
interest patterns rather than doing repetitive task.
Factors contributing to Monotony and Boredom
1. Long working hours exhaust the employee’s physical and psychological strength and
resources and thus result in monotony and boredom.
2. Continuous working hours without rest pauses exhaust the employee’s stamina and
contribute to monotony and boredom.
3. Unnecessary and routine motions kill the employee’s initiatives and creativity and thus
contribute to monotony and boredom.
4. Employee physical weakness and lack of strong will power cause monotony and
boredom.
5. Absence of conducive work environment like poor lighting, inadequate ventilation,
heavy noise and absence of ergonomics based furniture and space.
6. Improper factory layout and office layout also contribute to monotony and boredom.
7. Individual based supervision and control make the employee to experience alienation
and lead to monotony and boredom.
8. Narrow job description, absence of freedom and too much division of labour contribute
to monotony and boredom.
Brindavan College – Department of Commerce & Management Mr. Syed Kazim
Human Resource Management III Semester BBM
9. Allocation of job to the employee ignoring employee’s aptitude, interest and strengths
lead to monotony and boredom.
10. Forcing the employee to do the same work continuously without making use of his/her
skills and talents contribute to it.
Industrial accidents
An occurrence which interrupts or interferes with the orderly program of work
in an industrial establishment.
According to Factories Act of 1948, it is “an occurrence in an industrial
establishment causing bodily injury to a person which makes him unfit to resume duties
in the next 48 hours.
Causes for industrial accidents
1. Unsafe conditions. (Work-related causes)
a) The job itself.
b) Work schedules.
c) Psychological climate of the work place.
2. Unsafe acts.
3. Other causes.
a) Slippery floor.
b) Night shift.
c) Heat and humidity
d) Dust and fume.
Employee safety
Brindavan College – Department of Commerce & Management Mr. Syed Kazim
Human Resource Management III Semester BBM
The procedure to be adopted naturally depends upon the size of a company, the
number of plant it operates, the nature of the industry, the production technology and
the attitude of the top management.
Safety committee
1. Appraisal of Employee attitude to safety programs (Knowledge of the attitude)
2. Safety engineering (Procedure to reduce hazards)
3. Safety education and Training.
Morale
A mental condition or attitude of individual and group, which determines their
willingness to cooperate.
Importance of Morale
1. High level morale contributes to sound superior-subordinate relations.
2. High morale leads to employee satisfaction.
3. High level morale and employee satisfaction reduce grievances.
4. High morale leads to employee commitment to industrial peace by avoiding the
occurrence of industrial disputes.
5. Morale helps employee to build teams easily to maximize their contribution.
6. Implementation of enterprise resource planning and business process reengineering can
be possible with the employees of high morale.
Grievance and Grievance handling
Any dissatisfaction or feeling of injustice in connection with one’s employment situation
that is brought to the notice of management.
The causes of grievances
Brindavan College – Department of Commerce & Management Mr. Syed Kazim
Human Resource Management III Semester BBM
1. Demands for individual image adjustment.
2. Complaints about the incentive system.
3. Complaints about the job classification.
4. Complaints against a particular foreman.
5. Complaints concerning disciplinary measure and procedure.
6. Objection to the general method of supervision.
7. Loose calculations and interpretations of seniority rules.
8. Promotions.
9. Disciplinary discharge or lay-off.
10. Transfer for another department or another shift.
11. Inadequacy of safety and health services.
12. Non-availability of materials in time.
13. Violation of contracts relating to collective bargaining.
14. Improper job assignment.
15. Undesirable or unsatisfactory conditions of work.
16. Victimization.
17. Fines.
Prerequisites of a grievance procedure
1. Conformity with prevailing legislation.
2. Clarity.
3. Simplicity.
4. Promptness.
5. Training.
6. Follow-up.
Personnel records
Records refer to the information documents utilized by an organization to carry out its
functions.
Brindavan College – Department of Commerce & Management Mr. Syed Kazim
Human Resource Management III Semester BBM
A record is a piece of writing or a chart which provides ready information and which
preserves evidence for future reference or use.
Personnel records and reports record and provide the info relating to various aspects of
human resource of an organization.
Importance of records
1. To supply info required by the management for developing and modifying personnel
policies.
2. To identify training needs and design training programs.
Brindavan College – Department of Commerce & Management Mr. Syed Kazim
Voluntary arbitration
Committee of union & mgmt representatives
Manager
Grievance committee
Departmental
representative
Head of the
department
Department
representative
Supervisor
Foreman
Grievant employee
Conveys verbally
I stage Answer to be given within 48 hours
II stage Decision within 3 days
IV stage Communicate the Decision within 7 days
V stage Appeal to Mgmt for revision
VI stage within 7 days
N.S.
N.S.
N.S.
N.S.
N.S.
N.S.
Note: N.S.- not satisfied
Model: Grievance procedure
Human Resource Management III Semester BBM
3. To use them for successions planning by having a record of manpower skill inventory.
4. To know the validity of employment tests and interviews.
5. To take personnel decisions such as transfer, promotion, layoff, suspension, dismissal
etc.
6. To compensate the employee for their services to the organization.
7. To maintain on up-to-date on leaves, training, promotions, transfers, lay-off, dismissals,
retirements, strikes, lockouts etc.
Essentials of a good record
1. The objectives for which it is maintained should be clearly and adequately stated.
2. It should be consistent with the requirements for which it is maintained and should be
easily available.
3. Its upkeep and maintenance should not be costly. It should be kept under lock and key
to ensure that it is not mislaid or pilfered, or tampered with.
4. It should be periodically reviewed and brought up-to-date.
5. It should be maintained in such a manner that the information it contains is easily
accessible.
6. It should be easily identified and differentiated from another record.
7. The records of different kinds of information should be kept and maintained in separate
files and dockets for ready reference.
8. Duplication of entries in different records should be avoided.
9. Some particular person should be entrusted with the responsibility of maintaining
records.
10. A procedural manual should be maintained, detailing the procedure to be followed for
maintaining and dealing with records.
Personnel audit
An audit is a review and verifications of completed transactions to see whether they
represent a true state of affair of the business or not.
An audit is an examination and verification of accounts and records.
Brindavan College – Department of Commerce & Management Mr. Syed Kazim
Human Resource Management III Semester BBM
PA refers to an examination and evaluation of policies, procedures and practices to
determine the effectiveness and efficiency of HRM.
Objectives
1. To review the whole system of management program in which a management develops,
allocates and supervises HR in the organization.
2. To seek explanations and info, that is target consumer to question like, why did it
happen? What happened?
3. To evaluate the extent to which line manager have implemented the policies which have
already been initiated.
4. To evaluate the personnel staff and employee.
Need for personnel audit
Though there is no legal obligation to audit the personnel programs and activities, organizations
audit the personnel programs due to the following needs:
1. The number of Employees: Very small units, because of the very small number of
persons they employ, require comparatively little in the way of a formal audit.
2. Organizational structure: Continuing feedback is facilitated if an organization ha a HR
department.
3. Communication and feedback: An effective two-way communications system often
reduces the need for a formal audit.
4. Location and dispension: The need for a formal audit is directly related to the number of
isolated plants.
Brindavan College – Department of Commerce & Management Mr. Syed Kazim
Human Resource Management III Semester BBM
5. Status of an industrial relations manager: If they participate in top management plans,
reports, discussions and decisions, the need for a formal audit may be less frequently
felt.
6. Administrative style: The greater the delegation of authority and decentralization of
power, the greater the value of a regular and formal audit.
Areas of personnel audit
1. Mission statement relating to human resource management.
2. Objectives, goals and strategies of human resource management.
3. Accomplishments of human resource management.
4. Programs of personnel management including the detailed practices and procedures.
5. Personnel management policies.
6. Role of personnel management in TQM.
Brindavan College – Department of Commerce & Management Mr. Syed Kazim
Human Resource Management III Semester BBM
Chapter -7
Human Resource Development
Meaning of HRD
Those learning experience which are organized for a specific time and designed to bring
about the possibility of the behavior change.
Role of training if HRD
o Training helps the organization to impart basic technical skills and knowledge to
employees.
o It upgrades the technical skills and knowledge when there is change if
technology.
o Training imparts and develops the basic skills and this contributes to the basic
of HRM.
o Training is important to develop the employees and make them skillful to the
job.
o The objective of TQM can be achieved by training the employee continuously.
Brindavan College – Department of Commerce & Management Mr. Syed Kazim
Human Resource Management III Semester BBM
o Training is an art and it constitutes a significant part of HRD and management
control.
o Training plays an important in HRD and in achieving organizational strategies,
goals and objectives.
Knowledge management
A systematic , ,deliberate building, and application of knowledge to
maximize an enterprise knowledge related to opportunities and awareness from it’s
knowledge assets.
Hierarchy of knowledge
a) Wisdom
b) Knowledge
c) Information
d) Data
Knowledge resources
Employee Educational affairs also enhance the knowledge The human resource
which collects and process data into knowledge is called knowledge resource.
Computer process data into information, but not into knowledge. There HR with
high capabilities to convert data into knowledge or refer to a knowledge
resource.
HR with this creative and innovative skills and intelligence the data into
and productive knowledge. Freedom and empowerment the employees
to the organization knowledge resources along with training, development and
educational programs.Brindavan College – Department of Commerce & Management Mr. Syed Kazim
Human Resource Management III Semester BBM
Individual resources
Knowledge resources help the organization in the following
1. Enhance organization performance
2. Train and develop other employees
3. Spread and share their knowledge
4. Develop team spirit
5. Develop intellectual capital
6. Enhance cultural change and innovation;
7. The organization process and
Impact of globalization on HRM
Liberalization freeing industry, and trade from the clusters of control,
more economy of the country and its economic institutions and changing the structural
Liberalization of industrial policy includes of industries and removal of restrictions on
foreign investments
of foreign . Regulation act (FERA) and Monopolies and Restrictive Trade
Proactive(MRTP).
The economic reform announced the govt change the direction of the country from
socialistic pattern to market economy.
The trend of market economy results in intense and
Competition, entry of multinational and consolidation of sixty multinationals increase the stake
of multinationals in their Indian partnerships.
The major result of economic reforms is competition and all around competition.
Problems in relation to transnational and multinationals
Brindavan College – Department of Commerce & Management Mr. Syed Kazim
Human Resource Management III Semester BBM
Paying discriminatory salaries;
Higher salary rules;
1. The competent employee
2. Implicit HR
3. Kill trade and TV
4. Weaken collective
5. Organizational management
6. Hire and fire policy
7. Downsizing and
8. Multi-skills
Brindavan College – Department of Commerce & Management Mr. Syed Kazim