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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. Brindavan College – Department of Commerce & Management Mr. Syed Kazim

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Page 1: 10 HRM Notes

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

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(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

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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

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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

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(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

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(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

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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.

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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

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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

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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

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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

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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

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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

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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

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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

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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)

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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.

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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.

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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.

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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

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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

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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

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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.

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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.

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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.

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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

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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.

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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

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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

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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.

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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

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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

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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.

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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

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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.

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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.

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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.

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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.

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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

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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

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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