human resource management
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IntroductionHuman resources create organisations and help them to survive and prosper.
They essentially enable organisations to retain people.
Through their : philosophies,policies,procedures and practices.
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Lessons objectivesObjectives of HR.Importance and changing role of HR.Origin and growth of HR in India.Reasons for slow growth of HR in India.Evolving role of HR-Man.HR AUDIT
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Definitions of HRMFlippo states HR as:
Planning ,organising,directing and controlling of the procurement,development,compensationintegration,maintenance of human resource to the end that individual,organisational and societal objectives are accomplished
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Objectives of HRMTo improve the service rendered by the enterprise through building better employee morale.
To establish in the minds of everybody.
To create and utilise an able and motivated workforce.
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contdTo recognise and satisfy individual and group needs.
To employ the skills and knowledge of employees efficiently and effectively.
To strengthen and appreciate the human assets.
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ContdTo maintain morale and sound human relations.
To enhance job satisfaction and self actualisation.
To develop QWL.
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Scope of HRMNature of human resource management.Employee selection.Employee remunerationEmployee motivationEmployee health and safety.Industrial relations.Employee education.
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Importance of HRMCorporate
Proffesional
Social
National
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CorporateGood HR practices help in attracting and retaining good people.Develop right skills and attitude.Securing cooperation of employees through motivation.Effectively utilising human resources.
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ProfessionalImprove QWL.
Opportunity for development.
Allocating work properly and scientifically.
Maintaining healthy relation between individual and groups.
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SocialEmployment opportunities multiply.
Scarce talentys are put to best use.
Organisation which treat human resource as assets have excellent results.
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ContdBalance between job and job seekers.
Provides suitable employment that gives social and psychological satisfaction to people.
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NationalEffective human resource practices at national level bring great economic growth.
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Changing role of HRMRecognise talent and nurture .
Shifting from a protector to planner.
Help in changing from traditional to modern.
Selection process more appropriate and benefit package more individualistic.
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Functions of personnel management
Operative Functions
Managerial functions.
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Operative functionsProcuring
Developing and compensating
Utilising
Maintaining an efficient work force.
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Managerial functionsPlanning
Organising
Coordination
Directing
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Contd
Motivating
Controlling.
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Personnel management policiesAcquisition of personnel
Training and development
Appraisal and compensation of human resource.
Human resources Mobility.
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ContdWorking conditions and work schedules
Industrial relations.
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Role of Personnel ManagerDepartmental administration.
Recruitment,selection,Job analysis,job description and performance appraisal.
Training and induction
Wage and salary.
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ContdBenefits and services-insurance,medical facilities,retirement benefits.
Collective bargaining
Personnel research.
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Difference between big and smallClue
Structure
Hire
Fire,wage and salary
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Staff role of HR-DeptPolicy formulation.
Advising
Assistance and service
Monitoring and control.
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Origin and growth of HR-India1930-Royal commission formation.
Appointment of labour officers.
Second world war.-welfare officers.
1947-Industrial disputes act-Industrial relation officers
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Contd1948-Factories act-welfare officers.
1959-Employment exchange act.
1961- Apprentice act.
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Slow growth of HRLate arrival of factory system
Low status of industrial worker.
Professionalisation of HRM
Late awareness of social responsibility and Government attitude.
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Factors impeding GrowthAbundance of cheap labour.Weak labour movementAuthoritarian culture.Technological backwardnessInstability in employment.Unhealthy growth of trade unionsMigratory characteristics of Indian labour.
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Evolving role of HR Man in IndiaOrigin of Human Resource Management in India.
The Police Man
The welfare Man.
The Law Man.
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ContdThe Liaison Man
The HR Man
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HRM ModelTraining and Development
Organisation Development
Organisation /Job Design
Planning
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ContdPlanning
Selection and staffing.
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Training and DevelopmentTraining improves
Changes and moulds the employees
Skill,Behaviour,Aptitude and attitude towards the requirement of the job.
Training bridges the gap between job and employees specification.
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ContdManagement development is a systematic process of growth and development by which their abilities to manage.
It is a planned effort to improve current current or future managerial performance.
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Organisation DevelopmentOrganisation development is the modern approach to management of change and human resource development.
OD is a complex educational strategy
It is used to increase organisational effectiveness and wealth .
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ContdThrough planned intervention.
Concentrates on norms,values,attitudes,relationship and organisational climate.
Aims at improving the organisational effectiveness and job satisfaction of employees.
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Organisation/Job designOrganisational design deals with structural aspects of organisation
Aims at analysing roles and relationships
Develops relationship between exercise of authority and exchange.
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ContdMichael Armstrong defines job design as job in term of its duties and responsibilities.
Understanding the job design to motivate the individual and the organisation.
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PlanningHRP is defined as the process of assessing the HR needs in the light of organisational goals.
Efficient use of human,capital and technology.
Estimation of future requirements.
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Selection and staffingSearching for prospective employees and stimulating them to apply.
Selecting the right people at right time.
Selection process involves judging on variety of dimensions.
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ContdSelection includesApplication formInitial interviewsReference checksPhysical examinationFinal interview.
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Sub factors of staffingRecruitment of getting applications.
Selection of the best.
Transfer and promotion.
Training people who are qualified.
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Importance of proper staffingHelps in discovering talented employees.Ensures greater production.Avoids sudden distruption of enterpriseProvides information to management for internal succession.
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Personnel research and information systemResearch means systematic and goal oriented investigation.
Managers make decision and solve problems
Research can lead to better HRM practices.
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Compensation/BenefitsWages and salaries (the payment received for performing work) are a major component of compensation
Reward process is to motivate the employees.
Benefits such as ESI,leave travel concession,non financial rewards such as security,recognition and privileges.
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Employee AssistanceProviding personal problem solving
Counselling to individual employees.
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Union /Labour RelationsEstablishment of good albour relations.
Building constructive attitude.
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Environmental Influence on HRMTechnological Innovation
Economic factors.
Employees organisation.
Labour markets.
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ContdChanging Demand of employers.
Legal factors- Management of Human resource as per legislation enacted.
Legislations enacted in India
Factories Act, Trade Unions act,Workmens compensation act ,The payment of wages act,The minimum wages act,Payment of gratuity act,The maternity benefit act.
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Human Resource in the CountryChange in structure of employment and their different backgrounds.
Changes that have taken place in the structure of work force.
Increased level of formal education.
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HR AuditHR records provide information regarding the utilisation of human resources.
Critical evaluation of man power programme is required to identify the areas where improvement required.
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ContdAudit is an important aspect of management control.It is evaluation of policies,programmes and procedures in the area of HR management.
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Objective of HR AuditReview the whole system of management.
To evaluate the extent to which line managers have implemented the policies and practices
To review HR system in comparison to other organisations.
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Contd.To locate gaps and lapses.
To evaluate various HR policies.
To evaluate HR staff.
To seek answers to what ? Why? Why not?
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Need of HR auditTo increase size of organisation.
To change the philosophy of management towards HR.
To increase the strength and influence of trade unions.
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Contd.To change HR management philosophy,personnel policies and practices.
To increase dependence on the HR system.
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Indicators of HR auditProcurement
Qualitative indicator
Personnel inventory,replacement tables,organisation planning,job description,specification,source evaluation,exit interviews,induction.
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ProcurementQuantitative
Turnover rates,selection rates,retrenchment,dismissal,lay-offs,recruitment ratios.
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UtilisationIdentificatin of merits
Quantitative
Capacity utilisation,idle time,statistics,extra-time statistics,backlogs,turnover per employee,profit per rupee.
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Training and developmentTraining programmes,supervisory and management development programmes,systematic promotions,career planning.
Time taken in training,apprentice ratios,scrap losses,productivity increases.
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CompensationJob evaluation programme,wage and salary surveys,complaint from employees about wage and salaries.
Wage and salary differentials,bonus,ctc.
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Integration and maintainanceHouse organ,employees hand book,employees voluntary participation in optional service programmes.Quantitative
Measured morale,measured communication,absenteeism and turnover rates.
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Labour relationsLabour management committes,contract interpretations,no strike clause.
Work stoppages,grievances and their settlement,arbitrations,costs.
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Significance of HR AuditEmployees participation in organisational activities is essential for the success of the organisation.Provides the required feed back.CTCGovernments intervention can be restricted.
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Benefits of HR AuditIdentifies the contribution of HR department.Improves proffesional imageEncourages greater responsibility and professionalism amongst members of HR department.Classifies the HR departments duties.Stimulates equality
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Contd..Identifies critical personnel problems
Timely compliance with legal requirements.
Reduces Human resource cost.
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HR Audit Areas and levelsPlanningStaffing and development.OrganisingMotivation and CommitmentAdministration.Research and innovation.
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PlanningLevel-1Personnel shortage,supplies,layoff
Level 2Time bound,Cost benefit,budget
Level-3Present and future plans.
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Staffing and DevelopmentLevel-1Recruitment cost,training cost
Level-2 Inhouse and outhouse training programmes.
Level-3 Non Discrimination.
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OrganisingLevel-1 :Feedback,reader interest,extent of formal organisation.
Level-2 :Job definition for individuals,departments,task forces,house organs etc
Level-3 : Reduces resistance to change,effective 3 way communication.
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Motivation and commitmentLevel -1 : Productivity,performance norms,comparitive cost.
Level-2 :Job enlargement,morale survey,exit interviews
Level-3 :High personnel identification,whole sale satisfaction.
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Administration styleLevel-1 : Suggestion,promotion,union management
Level-2 Consultative supervision,collective bargaining,union management committes.
Level-3 :Style adopted.
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Research and innovationLevel-1 : Changes ,experiments research reports,publication.
R&D approach in all areas
Level-3 Test all old new theories.
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Scope of HR auditForecasting
Recruitment, selection ,careers,promotions ,training
Areas of leadership,welfare,PA.
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HR Audit ProcessIdentify indices,indicators,statistical ratios
Variation in time frame.
Variations of different department.
Draw trend lines and submit report.
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Audit resultsClose look at the policies,manuals,procedures
Trends in manpower utilisation.
HR depends on HR audit for improving his own performance.
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Audit Report Table of contents.Preface.Executive summaryArea wise data,department wise,individual wise then analysedSummary of analysisAppendixBibliography.The audit report needs to be signed by all members.
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Unit-2 HR PlanningHR Planning is the predetermination of the future course of action chosen from a number of alternative course of action for procuring,developing,managing,motivating,compensating,career planning,sucession planning and seperating the human element of enterprise.
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Definition of HRPHRP is the process which includes forecasting,developing and controlling by which a firm ensures that it has right kind of people at the right place in the right time for doing work which is economically most useful. By Geisler.
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General characteristics of HRPHRP must incorporate the human resource needs in the light of organisational goals.HRP must be directed towards well defined objectives.Right number of people in right placeShould pave way for effective motivational process
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ContdPeriodical review and changes.
Adequate flexibility should be maintained in HRP.
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Objectives of HRPPlan adequate number of people to achieve organisational objectives.
HR planner should have timing and scheduling of HR planning.
Aid in framing training and development.
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Importance of HR planningPlanning acts as a base for recruitment.
Employees can be trained and developed in advance.
A balance of Human resource can be created.
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ContdTo keep the cost of recruitment in check.
To bring a resorvoir of talent
Appropriate man power budget can be created.
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ContdAllows top management to participate actively in HR functions.
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Process of HRPAnalysing organisational plans and objectives.
Analysing factors of manpower requirement.Demand forecastingSupply forecasting.
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Contd.Developing employement plans
Job descriptionJob specification.
Developing Human resource plans.
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Strategies for HRPCollect ,maintain and interpret relevant information regarding HR.Peridically report manpower objectives,requirements and exisisting employment and allied features.Techniques to understand the requirement of manpower.
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ContdMeasures of manpower utilisation as components of forecasting.
Suitable techniques for allocation of work.
Develop and employ methods of economic assesment of HR.
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CONTD.Should evaluate the procurement,promotion and retention of the effective HR.
Should analyse the dynamic process of recruitment,promotion andloss to the organisation and controll them for maximum utilisation of individual and group.
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Advantage of HRPImprovement of labour productivity.
Recruitment of qulified HR
Adjusting with rapid technological changes
Reducing labour turnover.
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Contd.Control over recruitment and training costs .
Mobility of labour.
Facilitating expansion Programmes.
To treat manpower as corparate assets.
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Limitations of HRPInaccuracy
Uncertainties
Lack of support.
Number Game.
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ContdEmployees resistance.
Lack of purpose
Time and expense
Inefficient information system.
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Guidelines for making HRP effectiveObjectives
Top management support.
Appropriate time horizon
Man power inventory.
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ContdHRIS.
Adequate organisation and coordination.
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Responsibility for HRPAssist ,counsel and pressurise the operating management to plan and establish objectives.Collect and summarise data.
Monitor and measure performance .To provide research necessary.
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Job AnalysisThe immediate out come of job analysis is job description.
It is a statement explaining the contents and essential needs of job and a summary of the duty to be performed.
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contdJob description gives a precise picture of features features of each job in terms of task contents and occupational requirements.
Job description describes jobs not the job holder.
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Contd.It defines the scope of job activities,major responsibilities,positioning of the job in the organisation.
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Advantages/Important functionIndicate very clearly the nature and content of the job to the applicant.Rewards and punishments can be legitimised.Job description serves as an important basis for wage and salaryEasy to identify the training needs of the employee
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Limitation of Job DescriptionJob tends to be dynamic,not static and a job description can quickly go out of date.The superior and subordinates should agree with the job description.Job description must be as accurate as possible but this is a very difficult job.
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Job specificationJob specification is minimum qualities necessary to perform a job satifactorily.
Making job description as its base,it lays down the base of abilities and qualities.
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Job SpecificationPhysical characteristics:Height,weight,vision,voice
Psychological characteristics:Analytical ability,mental concentration and alertness,mechanical aptitude etc
Personal Characteristics:emotional stability,good and pleasing manners.
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ContdResponsibilities: Responsibility for the safety of others, responsibility for generating confidence and trust,etc
Demographic characteristics : Age,gender, education,experience etc.
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RecruitmentIt is process of searching for prospective employees and stimulating and encouraging them to apply for jobs in an organisation.
Source of recruitment:Internal External
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Internal sourcesPromoting people internally.
Transfer
Notified vacancy.
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Merits of internal sources of recruitmentAbsorbing people already acquainted with the company culture.
Maintains internal motivation very high.
Reduces labour turn over.
Less costly.
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DemeritsLimits the choice of employees.
Can be biased as role of seniors can play an important role.
It creates frustration among the unselected employees.
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External SourcesAdvertisements
Employment exchanges
Campus recruitment.
Unsolicited applicants.
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ContdLabour contractors
Employee referrals.
Field trips.
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Merits of external source of RecruitmentFresh talent and skill come into organisation.
New employees may try to change old habits.
Highly qualified and experienced employees
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ContdRecruitment happening from a large market,the best selection can be made.
External sources provide the requisite type of personnel having the required skill and standard.
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Demerits of external sourcesReduce the morale of existing employees.Denial of carrier advancement for existing employees.Proper evaluation not be possible because of time constraints.External recruitment may require training.
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Recruitment PolicyA policy is standing plan policies are directives
A policy assits in decision making.
A frame work to implement and function.
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Essentials of policy formulation.Should be definite ,positive and clear
Should be translatable into practice.
It should be flexible at the same time should have great transperency.
Should take care of all anticipated conditions.
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Contd..Take care of sound judgement.
Should confirm economic principles,statutes and regulations.
General statement of the established rules.
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Recruitment policy involvesTo find and employ the best qualified persons for each job.
To retain the best talent by offering life-time carriers
To facilitate personal growth on the job.
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Good recruitment policyCover organisational objectives
Identification of recruitment needs.
Ensure long term employment opportunities.
Preffered source of recruitment.
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SelectionSelection,either internal or external,is a deliberate effort of organisations to select a fixed number of personnel from a number of applicants .
The primary aim of employee selection is to choose those persons who are most likely to perfom their jobs with maximum effectiveness.
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Definition of SelectionThe hiring process is of one or many go-no-go gauges.
Candidates are screened by the employer and the shortlisted applicants go on to the next hurdle while the unqualified once are eliminated.
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Steps in selection procedureApplication blank
Initial interview of the candidate
Employment test. Aptitude test Interest test Intelligence test.
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ContdPerformance or achievement test.
Personality test.
Interviews
Checking References
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ContdPhysical or medical examination.
Final Interview and induction.
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PlacementAfter selecting a candidate he should be placed on a suitable job.
Most organisation put new recruits on probation for a given period of time.
The probation period may be extended if the employees do not perform.
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Employees placement processCollect details about the employees.
Construct the employees profile.
Match between sub group profile and individual profile.
Compare sub group profile to job family profile.
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Contd.Assign the individuals to job family.
Assign the individuals to specific job and future counseling and assessment.
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ContdDefinition according to Pigors and Meyers have defined placement as determination of the job to which an accepted candidate is to be assigned and his assignment to that job.
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Problems of placementEmployees expectation from the job.Expectation form the employers are more than the employees ability or skills.Technological changes might result in mismatch between the job and the employees.Change in the organisational structure may result in changes in the job.
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Induction ProgrammeAccording to R.P.Billimoria induction is a technique by which anew employee is rehabilitated into changed surroundings and introduced to the practices,policies and purpose of the organisation.
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Need for orientationAnxiety of new employees.
Employee joins and finds job not according to expectation.
Proper induction helps to gel new employees with old employees.
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Steps in induction programWelcoming the new recruit.
Providing knowledge about comp
Providing with companies manual.
Location to work
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ContdExplain department.
Providing information about various groups.
Details about pay,wage and salary.
Disscusing career prospects.
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Types of induction prgrmGeneral induction
Specific orientation
Follow up Induction.
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Chpt-3 TrainingTraining is a process of learning a sequence of programmed behaviour.
It is application of knowledge.
It gives people an awareness of the rules and procedures to guide their behaviour and attempts to improve their performance on the current job.
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Purpose of trainingIs to achieve change.Enable to perform better
This is achieved through bringing in positive change.
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ContdKnowledge-Helps trainees to know facts,policies,procedures and rules pertaining to job.
Skills- helps him to increse the technical and manual efficiency.
Attitude-Moulds his behaviour towards his co-workers.
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Importance of trainingEquips the management to face the changing pressure.Results in the increase of quantity and quality of output.Leads to job satisfaction and high morale.Need lesser supervision.Trained personnels can meet the competition of rival organisation.
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ContdEmployees can increase their earning capacity.Moulds employees attitude and helps them achieve better.Economic use of material and equipmentsReduces absenteesim and labour turnover.
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Benefits of organisationHigher productivityBetter organisation climateLess supervision.Man power obsolescence.Economic operations.Prevents industrial accidents.Improves quality
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ContdGreater loyality.
Fulfills organisations personnel needs.
Standardisation of procedures.
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Benefits to employeesPersonnel growthDevelopment of new skills.High earning capacityAdjust with technologyIncreased safetyConfidence
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Types of training programmesInduction or orienting training
Job training
Promotional training
Refresher training
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Contd.Apprenticeship training
Internship training
Vestibule training
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Steps in training ProgrammeDiscovering or identifying training needs.
Preparing the instruction or getting ready for the job
Preparing the trainee
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Contd.Presenting the operation
Try out the trainees performance
Follow up or rewards and feedback.
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Identifying the training needsOrganisational analysis.
Operational analysis
Man Analysis :Reviews the knowledge,attitudes and skills a person must acquire
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Preparing the instructorInstructor is the key figure in the entire programme.He must know both the job tught and how to teach.Job must be divided into logical parts.Must have a lesson plan.
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Preparing the traineePutting the learner at ease.Stating the importance and ingredients of the job and its relationship to work flow.Explaining why he is being taught.Creating interest and encouraging questions .Explaining the why of the whole job and relating it to some job the workeralready knows.
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ContdPlacing the learner as close to his normal position as possible.
Familiarising him with equipment ,materials,tools and trade terms.
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Presenting the operationsExplain the course for the job.Do the job step by step according to the procedure.Explain each step that he is performing.Have the trainee explain the entire job.
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Try out the trainees performanceThe trainee is asked to go through the job several times slowly.
Mistakes are corrected .
Repetitive practice.
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Follow upTesting the effectiveness of training.
Feed back on training effectiveness.
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Selection of training methodNature of problem area: operational problem or human resource problem.
Level of trainees in the organisation hierarchy
Methods ability to hold and arouse the interest of trainees during the training period.
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ContdAvailability of competent trainers.
Availability of finance.
Availability of time.
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Executive or management developmentAccording to Harold Koontz, Developing a manager is a progressive process in the same sense that educating a person is .Neither education or development should be thought of as something that can ever be complicated.
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Need and importance of executive developmentShortage of trained managers.
Performance of company depends upon the quality of managers.
Obsolescence of managerial skills
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Objectives of executive development Steady source of competent people.Prevents managerial obsolescene.Prepares the employees for higher assignments.Develop a second line of competent managers.Promote high morale and good organisational climate.
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Methods of executive developmentOn the job methods
Off the job methods.
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On the job methodsCoaching
Job rotation
Special projects.
Committee assignments.
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Off the job methodsRole playing
Case study method.
Conference training
Management games.
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ContdSensitivity training/t-group training
In basket exercise
Syndicate method
Multi management and special course.
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Career PlanningIt is a series of work related experiences but a sequence of attitudes and behaviours associated with work related activities over the span of a persons life.
Career thus represents an organised ,well timed and positive move taken by aperson across time and space.
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Aims and Objectives of career planningAims at matching individual potential for promotion and individual aspiration.
Organisation has right people with right skill at right time.
Opens growth opportunities for employees of organisation.
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Principle objectivesTo secure right person at right time for the right job.To provide adequate career avenuesTo strengthen the retention programme of the organisation.To make a contended team of employees.
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Needs for career planningTo attract competent persons and retain them in the organisation.To provide suitable promotional opportunitiesMap out careersEnsure better utilisation of managerial reservesTo reduce employee dissatisfaction
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Contd.To correct employee placement
To improve employee morale and motivation
To achieve higher productivity.
To provide guidance and encourage employees.
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Benefits of career planningCareer planning helps employees enhance their job.
Helps in overall effectiveness of the organisation.
Employees is assured of qualified and comitted employees.
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Benefits of a career development systyemManagersIncreased skill in careersGreater retention of valued employeesBetter communication between managers and employees.More realistic staff developmentPrductiver performance appraisal decision and enhanced reputation.
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ContdEmployees
Helpful assistance with career decisionsEnrichment of present job,better communicationMore realistic goal planningBetter feedbackCurrent informationGreater personal responsibility for career
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OrganisationBetter use of managing employees skills.Dissemination of information.Better communication in organisation.Greater retention of valued employees.Expanded public imageIncreased effectiveness of personnel system and greater clarification of goals.
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Process of career PlanningIdentfication of individual needs and aspiration.
Analysing Career opportunities.
Identifying congruence and incongruence
Action plans and periodic review.
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Performance AppraisalPerformance appraisal includes all formal procedures used to evaluate personalities and contributions and potentials of group members in a working organisation.
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Objectives of PASFeed backCompensation decisionsPersonal developmentTraining and development Programme.Promotion DecisionImproves Supervision.
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Uses of PASValuable information for personnel decision.Provide feedback about level of achievement.Suggesting changesAnalyse training and developmentUsed for selection for higher positionsBase for HRP and positive environment.
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Performace appraisal systemEstablish job analysis.Establih standards of performanceCommunicating standards of performace for subordinates.Measuring actual performance.Comparing actual with standard.Initiating corrective action.
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Purpose of performace appraisalAdministrative
Employee Development
Programme assessment
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Need of performance appraisalCreating satisfactory level of performanceFixation of salary,allowancesEvaluate the effectiveness of training and developmentAssessing the strengths and weakness of HR and giving feed back
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Process of performance appraisalJob analysis,job description and job specification.
Establishing standards of performance.
Communicating performance standards to employees
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Contd.Measuring actual performance
Objective performanceQuality of productionDegree of training neededAccidents in a given periodAbsenteesimLength of service
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Subjective performance measuresRatings by supervisorsKnowledge about overall goals.Contribution to socio cultural values of the environment.
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CntdCorrecting actual performance with standards.
Initiating corrective course of action.
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Essentials of a good appraisal systemReliability
Job relatedness
Standardisation
Practical viability
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Contd.Training to appaisers
Open communication
Employee Access to results
Clear objectives
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Contd.Post appraisal interview
Periodic review
Non Vindictive in nature
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Methods of training of PASTraditional
Non-traditional.
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Traditional MethodUnstructured methodStraight ranking methodPaired comparisonMan to man comparison methodGrading methodGraphic ratingForced choiceCheck list method
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ContdWeigh check methodFree essay methodCritical incidents methodField review methodConfidential reports.
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Modern methodsBARS-Behavioural anchored rating scale method
Result oriented methodMBOAssessment methodHuman resource accounting360 degree appraisalPsychological appraisal
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Post appraisal AnalysisReliability and validity
Confidence and trust
Immediate superior as appraiser.
Swift and economical
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Contd.Open Communication
Post appraisal interview
Job Relatedness
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Problems of performance appraisalRating biasesLeniency and strictness errorHalo errorCentral tendency errorPersonal PrejudiceConsequence of appraisalRecency effect
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ContdOpportunity Bias
Group cohesiveness
Knowledge of predictor bias
Similarity error
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Ways for Improving performance appraisalChoosing the appraisal methodMultiple ratersTraining AppraisersOngoing feedbackSelective ratingPeer evaluationPost appraisal interviewsRewards to accurate appraisers.
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Job CompensationJob evaluation is an effort to determine the relative value of every job in a plant to dtermine what fair basic wage for such a job should be.
A process of determining the relative worth of the various jobs within the organisation,so differential wages may be paid to jobs of different worth.
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Objectives of job evaluationPayment of high wages and salaries to persons who hold jobs and positions not requiring skill,effort and responsibility.Paying beginners less than they are entitledGiving raise to people whose performance does not justifyDeciding rates of pay on the basis of seniority rather than the abilityPayment of varied wages and salaryPayment of wages and salaries on the basis of race,sex,religion .
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Principles of job evaluation programmesRate the job and not the man.Elements selected for rating should be easily explainable.Elements should be clearly defined and properly selectedInvolving the employees for job evaluation.
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Advantages of job evaluationA logical method for ranking jobs.
A new job the method often facilitates fitting them to existing wage structure.
Helps in removing grievances
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ContdUniformity in wage structure.
Information can be used for transfer,promotion procedure.
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Limitations of job evaluationRapid technological advancement
Creates doubts and fears.
Job evaluation takes a long time to install.
Leads to grievances.
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Contd.Job evaluation is a highly subjective process
Traditional job evaluation method is not suitable to evaluate relative worth of managers.
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Methods of job evaluationNon-analytical or non-quantitative system
Ranking system
Job classification or grading system
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Ranking systemIn this the job raters rank one job against another
They do not assign any points or values
It is done from lowest to the highest.
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MeritsSimple,quick and inexpensive.
Suitable for small organisations who can not employ consultants.
System is simple and easy to understand.Inexpensive.
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DemeritsIt is a crude process where specific job requirements are not analysed separately.
There is absence of any yard stick.
It just produces a job order but does not indicate how much one job differs from the other.
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Job cassification/grading systemA number of pre-determined grades or classification are established.
It begins with an overall comparison of all jobs.
Ageneral specification is prepared indicating the nature of workand responsibility.
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Contd.Each grade is assigned a salary range with maximum and minimum limits
The jobs are then fitted into these predetermined classes.
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Merits of job classificationBest suited for small organisations,it is easy,inexpensive to administer.
Employs think of jobs in cluster or group.
Job grading is considered to be an improvement over ranking.
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Contd.Job grading makes pay determination problems administratively easier to handle.
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Demerits of grading systemDifficult to write comprehensive and unambiguous class description.
Rater can be easily influenced by title,personality and existing pay rate of jobs.
Lack of substantiating data.
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Contd.Personal evaluation determine into which class the job should be placed.
Unsuitable for large organisations as it is a very rigid system
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Analytical or quantitative systemIn case of quantitative system various factors of a job are considered and points are alloted according to their relative worth.
There two types of system,point rating system and factor comparison method.
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Point rating systemThis system is based on allocation of points to each factor of the job and the sub factors.
The overall point scored decides the worth or value of a job.
First introduced by western electrical company
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Merits of rating systemPredetermined factors act as guidelines for rating.
Method forces raters to consider individual factors rather than job as whole.
Gives numericals as base for job differentiation.
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Contd.Prejudice and human judgement are minimised.
Assignment of points determine the worth of the job and also gives a comparison of how much one job is worth than the other.
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Demerits of point rating systemVery difficult to give a fair evaluation of the relative worth of each job in the organisation.
The listing may omit some elements that are important in certain jobs.
Workers find it difficult to fully comprehend the point rating system
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Contd..Time consuming
There is considerable working.
System is inflexible at the same point systems canot generally be sued for production and office jobs.
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Factor comparison systemThis was developed by Eugine J Benge at the Philadelphia Rapid transit company in 1926
Determined the relative importance of factors and their significance.
E.g,factor skills,mental skills,responsibility which is then converted to money.
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Merits Systematic,quantified and detailed.
Can be used to evaluate unlike jobs such as clerical,supervisory.
Job by job comparison.
Fairly easy system to explain to employees.
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DemeritsVery expensive and complicated
Difficult to operate.
Money rates ,tends to influence rater.
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Essentials for success of job evaluationManagements objective must be clear.
All relevant internal and external factors must be considered.
Should have approval by top management.
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ContdMust be accepted by trade unions.
There must be a centralised coordination
Conduct of wage surveys to provide proper information.
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ContdPredetermination of factors
Important factors of job content.
Job evaluation issues
Category up to which it would be covered.
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ContdWho would evaluate the job?
How would employees be consulted.
Is the atmosphere proper for launching the programme.
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Uses of job evaluationEffective means of determining internal pay relationship
Used as a tool for implementing companies basic pay.
Foundation for insentives and bonus plans.
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ContdMoves for promotion or demotion can be determined
Realistic foundation for gearing companies pay scale
Assists managers in meeting day to day problems,reduction in employees grieveances.
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Uses of Job evaluationJob evaluation is most effective means of determining internal pay relation for most type of jobs.
Can be used as a tool for making companies basic pay policies.
Forms a reasonable basis for personnel moves
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ContdUseful control over wage and salary.
Forms a realistic foundation.
Assists managers in meeting day to day problems.
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Wage and salary administration.Methods of Wage Payment
Time wage system
Piece wage system
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Time wage systemBased on the amount of time spend on work.
Wages do not depend on the performance of the employees.
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Features of time wageIt is more widely used.It is simple to compute the earnings.Provides guaranteed and secured income.Removing fear of irregular income.It facilitates pay roll function.
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Advantages of time wage systemSense of security of income.
Conducive climate is provided for better labour management.
Disputes minimised.
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Disadvantage of time wage systemTime wage system offers no incentives.No encouragement for better performance.Ambitious workers receive no monetary reward.Demands intensive and strict supervision.
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Piece wage systemThe amount is paid based on the work performed or productivity.
Earning of the employees are directly proportional to productivity.
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Features of Piece wage systemCan offer direct connect between effort and reward.
Ensures productivity.
Wage cost determination is easy.
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Advantages of piece wage systemDirect connect between effort and reward.
Simple and easy to understand
Worker interested in higher efficiency
Cost accounting and control by management is made easy.
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Disadvantages of piece wage systemDanger of overwork
Requires a lot of supervision to maintain quality and standard of work.
It is an ineffective method ,if quality is given preference.
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Incentive wage plans.A system of payment which would maintain both quality and quantity is called Incentive wage plan.
A judicious system which includes both basic wage system and a blend of time and piece wage system.
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Essentials of a sound wage incentive plan.Measurement of the amount of work done
Establishment of standard output on the basis of which the incentive have to be worked
Setting up a suitable rate of incentive.
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Types of incentive plansHalsey PlanRowan planTaylor s differential piece wage planThe Emerson efficiency systemThe Gantt systemThe bedeaux point premium plan
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Halsey Plan Plan originated by F.A.HalseyWas started to bring in efficiency amongst workers.Guaranteed wages according to time basis.Standard time calculated was based on time and motion studies.
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ContdWorkers who perform the job in less than standard time is paid bonus.
Those who take the whole time ,not punished but paid regular time wage system.
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Contd.Earnings are based on the 33% value of time saved.
Standard time set on previous experience.
50% of time saved when the standards are scientifically set.
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Rowan PlanWages ,according to time basis are guaranteed.
A standard time is determined before and a bonus is paid according to time.
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ContdEarnings calculated
Bonus = Time saved * time taken*hourly rateStandard time
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Taylors differential piece wage planThere is no guarantee of wages.The standard of output is fixed per day e.g. 40If the per unit charge is 30 paisa and 25 paisaIf the output reaches 40 units then they get 30 paisa for every unit.If the output is 39 units they get 30 paisa for every unit.
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Emerson efficiency systemIn this the daily wage is gauranteed.
Workers given a particular time to complete.
If they take lesser time then bonus granted .
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Gantt SystemSimilar to Emerson efficiency system
100% Efficiency essential
Foreman also attains bonus if the worker under him attains the required standards.
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Bedeaux point premium planThe chief novelty of this plan is that the value of time saved is divided between workers and foreman
to workers.
to foreman.
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Variable Compensation individual and groupIncentive compensation is also called as payment by result.
A means of sharing financial profit with workers so that there is better out-put.
Incentive system helps to reduce the gap between workers and management.
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Broad categories of incentives3 incentive schemes classified by Dunn and Rachel.
Simple incentive plan
Sharing incentive wage plan
Group incentive plan
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Simple Incentive PlanThe simplest of all wage incentives straight piece rate system.
One of the oldest method.
Straight calculation done on the basis of the price given per unit.E.g-Rs 2 ,if 10 pieces then Rs 20.
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Sharing incentive wage planModification of Taylors wage plans.
The workers get paid on the piece rate system
Those who produce more in a given time is paid more per unit charges.
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Group incentive planApplied where there are more number workers.
There is join achievements and results
Inculcate team spirit and a sense of mutual cooperation among workers.
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Requisites for the success of an incentive planBelieve that money is a strong motivator
Direct effort between effort and reward
Worker is immediately rewarded for effort.
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ContdRelation between management and workers
Should reward employees in direct manner
Plan should be easily calculated
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Contd.Immediate rewards for performance
Must be within the financial budget
Should be gauranted and on reasonable standards.
Reward needs to be valuable to employee.
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ContdPlan must encourage employees to support each otherTaken to consideration health and welfare of the employees.Clearly identifiableGuaranteed base rate.
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Fringe BenefitsFringe benefits are additional benefits and services that are provided to employees in addition to their salary.
They are given to the employees based on their performance.
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ContdAdvantage of fringe benefits are that they are not included under taxable income.Fringe benefits such as health, insurance can be attained at a lower expenditure.Companies usually use these benefits to retain the employees.
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Fringe benefits helpLessen fatigueOppose labour unrestSatisfy employee objectivesPromote recruitmentMinimize turnoverReduce overtime costs.
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Principles of fringe benefitsBenefits and services must be provided to the employees for protection and encourage their well being.
The benefits should fulfill real requirements of employees.
Benefits should and services should be cost effective.
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ContdFringe benefits should be monitored with proper planning.
While determining the fringe benefits the fringe benefits communicated by the union must be considered.
The employees of a company must be well informed.
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Examples of monetary benefitLegally required payments: Old age ,survivors and health insurance, workers compensation, unemployment compensation.
Dependent and long term benefits: Pension plan, group life insurance, group health insurance, sick leave
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ContdPayments for time not worked:Vacations,holidays,voting pay allowances.
Other benefits: Travel allowances, company car
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Types of fringe benefitsMonetaryNon Monetary
Examples of non-monetary:Knick-knacks: Company watches, desk accessories-shirtsTreats: Free lunch, coffee breaks, picnics.
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Important fringe benefitsPayment for time not worked
Insurance benefits
Compensation benefits
Pension plans.
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Monitoring fringe benefitsSetting up benefit objectivesAssessing environmental factorsDetermining competitivenessConveying benefit informationControlling benefit costs and evaluation.
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Setting up benefit objectivesEncouraging external competitiveness
Enhancing cost effectiveness
Fulfilling the needs and preferences of each employee
Adhering to the legal compulsion.
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Assessing Environmental factorsGovernment policies
Regulations
Union and economic factors
Internal factor includes: Financial condition.
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Determining competitivenessCompetitors provision.
Competitors strategies
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Conveying Benefit Information
Booklets
Regular employee meetings
Brochures and slide presentations.
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Controlling benefit costs and evaluationHas the employees earnings enhanced.
Has the earning of the employees been able to attract new employees.
Has the confidence risen.
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Concept of variable compensation planThe variable compensation reffers to the incentive schemes given to workers on the basis of productivity
Individual incentivesGroup incentives.
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Incentive schemesStraight piece work method
Standard hour method
In both methods earnings vary in the same proportion as output.
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Earnings vary less proportionately than outputHalsey plan
Rowan plan
Barth scheme
Bedaux planAll the plans work on time saved.
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Earnings vary proportionately more than the outputHigh Piece rate method
High standard hour method
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Objectives of national wageTo eliminate malpractices.
To set minimum wages for workers.
To rationalize inter occupational,inter-industrial,inter-regional wage differentials in such a way that disparities are reduced in a phased manner.
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ContdTo compensate workers for the raise in the cost of living in such a manner that in the process the ratio of disparity between the highest paid and the lowest paid worker is reduced.
Promote collective bargaining and trade unions.
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ContdFruits of economic development.
Avoid a policy of high wages.
Efficient allocation and utilization of resources.
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Regulations AdoptedPrescribing minimum rates of wages
Compulsory conciliation and arbitration
Wage boards.
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Minimum wagesIn order to prescribe the minimum rate of wages, the min wages act 1948 was passed.
The act empowers the govt to fix minimum rates of wages in respect of certain sweated and unorganized employments.
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Compulsory conciliation and arbitrationWith the object of providing for conciliation and arbitration, the industrial disputes act 1947 was passed.
It provides for the appointment of industrial tribunals for settlement of industrial disputes.
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Wage boardsA wage board is a tripartite body with representatives of management and workers.
It is presided over by a government nominated chairman who can act as an umpire in the event of disagreement among the parties.
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Wage policy in a developing economyA suitable wage policy for a developing economy must ensure economic growth with stability.
If the wage level is high it will hamper the industrial growth.
If the wage level is low it will adversely affect the workers.
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Two main considerations in wage fixationAdjust wages to cost of living need based wages)
To link wages with productivity.
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Need based wagesThe wage should enable the worker to provide for himself and for his family not merely the bare necessities of food, clothing and shelter but also include education for children, protection against ill-health, requirements of essential social needs and a measure of insurance against misfortunes and old age.
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Labour conference 1957The standard working family should consist of three consumptions units.
The minimum requirements of food should be calculated on the basis of net intake of calories as recommended by Dr. Aykroyd
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Contd.The clothing requirements should be taken as 18 yards per head per annum.As for housing the rent corresponding to minimum provided under the government industrial housing scheme.Fuel ,lighting and other miscellaneous constitute 20 percent.
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Minimum wageNational commission on labour describes
Wage which provides a worker with physical subsistence.
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Fair wageThe productivity of labourPrevailing rate of wages.Level of national income and its distributionPlace of industry in the economy.The degree of unionization of labour.
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PromotionPromotion is a term which covers a change and calls for greater responsibilities and usually involves higher pay and better terms and conditions of service and therefore a higher status or rank.
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Types of promotionLimited promotion
Dry promotion
Multiple promotion
Up and out promotion
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Basis of promotionPromotion based on seniority
Promotion based on merit
Temporary promotion
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Promotion policyState formally the organizations broad objective
Ratio of internal promotion Vs external recruitment
Decide the basis of promotion performance appraisal)
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ContdCommunicate promotion policy
Lack of promotion avenues.
Determination of seniority
Relation of disciplinary action to promotion.
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Advantages of promotion policyWorks as an incentive .
Develops employee loyalty.
Increases job satisfaction
Increases work effectiveness.
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ContdAttracts effective employees.
Increases employee interest in training and development.
Promotion makes employees believe that their turn would come.
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DemotionIt is a process where the employees are send to a lower position.
It could be with less authority and responsibility with lesser payment.
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Causes of demotionAs a disciplinary weapon.
Due to personnel reasons such as ill health
Curtailing of activities.
Can not meet standards.
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Conditions for demotionViolation of rules
Proper and detailed investigation
Violations occur
Provision for review and infrequent.
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TransferA change in the assignment without the change in status is called transfer.
Yoder defines it as a lateral shift without change in position .
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Types of transferGeneral transfer Production transferReplacement transferShift transferRemedial transferVersatility transferPunishment or penal transfer.
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ContdRequest or personal transferMutual transfer.
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Transfer policyClarify circumstances under which transfer would be used.
Must locate the authority who initiate transfer
The policy should maintain if transfer can happen within department, within sub units.
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Contd..Describe the type of transfer.
If seniority credit would be maintained and so on..
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Transfer procedureIntra departmental transfer
Inter departmental transfer.
Branch transfer
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SeperationResignation
Discharge
Dismissal
Retrenchment
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ContdLay off
Golden hand shake
Retirement.
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AbsenteeismUnauthorized absence of the workers from the job when work is available.
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Rate of absenteeismRate of absenteeism =(No of total man shifts lost- no of total man shift schedule)* 100
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Causes of absenteesimMaladjustment with factory condition.
Social and religious function
Stress
Alcoholism and drug abuse.
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Contd.Unsatisfactory housing condition
Sickness
Unhealthy working condition
Rural exodus
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ContdAbsence of sufficient welfare activities
Managerial attitude
Over identification with family affairs
Desire for money status and power.
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Measures to control absenteesim.Notification.
Granting of leave
Programmes should be strengthened
Offering bonus
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Labour turnover
Measurement of labour turnover can be done
AccessionSeparationReplacementFlux method
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AccessionLabour turn over= (No of accession during a period+ Average no of workers during the period) *100
Separation= No of separations during the period Average number of workers during the period* 100
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Causes of labour turn overResignation
Dismissals
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Measures to reduce labour turn overIncrease pay level
Introduce rewards
Career opportunities
Work shop etc.
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QUALITY OF WORK LIFEQuality of work life basically talks about the sociopsychological needs of the employees, requirements of technology ,structure where the employees have a level of satisfaction thus increasing their rate of performance
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Factors for QWLCompensation
Safe working conditions
Personal rights
Balance of family and work
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Effects of QWLJob involvement
Employee satisfaction
Great sense of competencies.
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Scope of QWLFair and reasonable pay
Safer environment
Benefit for employees
Job security, job satisfaction
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Approaches to QwlFlexibility of work schedulesFreedom to form groupsOpportunity for growthParticipation of employeesImplementing suggestion system
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Historical background of QCIt was started in Japan in 1960.
QCs have spread all over the world.
QCs became popular in all the industry.
QC members identify the problem and bring in improved condition.
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Objectives of quality circlesImprovement and development of organization.Develop respect of human relation and induce job satisfaction.Deploy human capabilitiesTo satisfy the workers psychology.To improve quality of product services and reduce cost.
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Advantages of quality circlesGeneration of creative ideas
Improve in productivity
Better team work
Higher motivation
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Limitations of QCFitting of QCs in existing culture.
Top management should take proper care and interest.
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Conditions essential to make QC effectiveTop management support
Education and training of managers.
Timely implementation
Sharing gains in productivity
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ContdFacilities for meetings and discussions
Regular monitoring of working of quality circles.
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MoraleMorale is the degree of enthusiasm and willingness with which individual workers of a group set out to perform.
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Effects of low moraleHigh rate of absenteeismTardinessHigh labour turnover.Strikes and sabotageLack of pride in workWastage and spoilage
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Measures to build high moraleLeadershipSound wage Favorable work environment.Higher order need satisfaction.Other measures
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Factors affecting moraleThe organization.Job enrichmentLeadershipWork environmentNature of workAttitude of co-workers.
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Job satisfactionJob satisfaction : The combination of physiological and environmental circumstances that cause a person to truthfully say I am satisfied with my job.
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Determination of job satisfactionJob contentOccupational level.Pay and promotionWork groupSupervision
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Personal characteristicsAgeGenderEducational levelMaritial statusExperience
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Consequences of job satisfactionAffects the physical health
Lack of job satisfaction creates an unwillingness to work
Job satisfaction reduces employee turnover.
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Social SecuritySocial security is complete protection of every citizen.
According to ILO1952 following are the nine components.
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Components of social securityMedical careSickness benefitUnemployment benefits.Old age benefitEmployment injury benefitFamily benefitMaternity benefitInvalidity benefit & survivor benefit.
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Social security in IndiaSocial Assistance
Social insurance
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Draw backs of social security schemes in IndiaAll needed to be integrated in one act.
Very little contribution is made by the state and the employer.
Social security benefits only industry workers.
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Laws and actsThe employee state insurance act 1948
The employees provident fund act 1952
The workmens compensation act ,1923
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ContdThe maternity benefit Act 1951
The industrial disputes act,1947
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Employees state insurance act 1948ESIS Employee state insurance scheme.
Medical facilities to employees who have salary less than 6,500 Rs.
The treatment should also to be provided to retired and spouse at a cost of Rs.10
-
ContdThe entire functioning is monitored by ESIC-Employees state insurance scheme. It covers
Sickness benefits Medical benefitMaternity benefitDisablement benefit
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ContdDisablement benefit
Dependents benefit.
Funeral benefit
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The employees provident fund act 1952The employees provident fund act was launched in1952
The scheme is applicable to people getting a salary of Rs5000.
According to this employees are supposed to contribute
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Coverage of employees provident fund act 1952Employees pension scheme 1995Death Relief fundGratuity schemeEmployees deposit linked scheme.Group life insurance scheme
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Workmen's compensation act 1923This act provides social security to the employees of a company
The employee has to be compensated if they meet with an accident during course of employment.
Overtime pay, benefits of food, clothing etc
-
ContdMin amt to be paid to an employee for permanent disabled or death is Rs60000 and Rs 50000
Min payment for permanent disablement is 2.28 lac and Rs 2.74 lac.
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Maternity Benefit act 1961Maternity leave
6 weeks before due date
Free medical treatment
Allow the female ladies to feed her baby.
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The Industrial disputes act 194725A TO 25S: Related to employee termination
25C to 25 E :They are not applicable for organization with employees less than 50 employees.
Sec 25 C ;It states that if an employee has worked for a year or more than a year the company needs to give 50% of the employees basic salary.
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Health and safetyPhysical health
Mental health
Noise control
Work stress
-
Industrial accidentCauses of accidents :
Unsafe conditions
Unsafe acts
Other causes
-
Contd.Accident prevention
Occupational disease
-
Provision under factories act 1948A)HealthCleanlinessDisposal of wastesVentilation and temperatureDust and fumeArtificial humidificationOvercrowdingLighting, drinking water,laterines urinals.
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CONTDSafetyFencing of machinery Work on near machinery in motionEmployment of young person on dangerous machine unless.
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Labour welfareEfforts to make life worth living for workmen
-
Need for labour welfareFrom the point of view of workers
Employers point of view
From unions point of view
-
Provision of labour welfareWashing facility
Storing and drying clothes
Sitting arrangement
First aid application
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ContdCanteen
Rest rooms.
Creches