Job Analysis
Job Analysis
Job analysis:
The process of studying and collecting informations relating to the operations and
responsibilities of a specific job. The immediate product of this analysis are job description and
job specification.
It analyze the content & characteristics of the job and requirements/ qualifications needed to
perform those jobs.
Job description:
Job description is an organized, factual statement of the duties and responsibilities of a specific
job.
It should tell what is to be done, how it is done, and why. It is a standard of function. It defines
the authorized content of the job. It contains : job title, location, job summary, duties, machine,
tools and equipments, materials used, supervision given or received, working conditions, hazards
etc.
Job specification
A statement of the minimum acceptable human qualities necessary to perform a job properly. It is
a standard of personnel and designates the qualities required for acceptable performance.
A statement of human qualifications necessary to do the job. Usually contains such items:
education, experience, training, judgement, initiative, physical effort, physical skills,
communication skills, emotional characteristics, sensory demands such as sight, smell, hearing
and many others depends upon the nature of job.
iii)
iv)
v)
All jobs are categorized under above 5 job dimensions. Information is collected through using a
position questionnaire.
1. Person or behaviour- focused technique.
2.
Physical abilities analysis (PAA) analyse the physical abilities/ strengths required by
job holders to perform the jobs.
3.
The critical incident technique (CIT)- critical job incidents that represents effective or
ineffective performance. This techniques identifies the crical incidents that occured durung last 6
to 12 months. Desirable or undesirable.
4.
Guidelines-oriented job analysis (GOZA)- GOZA techniques analses job after completion
of following steps:
i)
Listing the job domains of the incumbents
ii)
List the important or critical duties typically requiring person to perform in a job
iii)
Determine how frequently these critical duties are required to be performed & their
importance
iv)
Determine requisite skills/ knowledge
v)
Determine physical characteristics
vi)
Describe other characteristics
JOB ANALYSIS PROCESS
Six steps in doing job analysis- According to Dessler
1.
Decide how you will use the information- it helps to determine the types of data and
methods to collect.
2.
Review relevant background information- such as organization chart, process chart & job
description
3.
Select representative positions- because there may be too many similar jobs to analyse.
Eg. It is usually unnecessary to analyse the jobs of 200 assembly workers when a sample of 10
jobs will do
4.
Actually analyse the job- by collecting data on job activities, required employee behavior,
working conditions and human traits and abilities needed to perform the job. Use one ore more
methods and techniques of Job Analysis.
5.
Verify the job analysis information- with job holder & immediate supervisor to confirm
that informations is factually correct & complete.
6.
Develop a job description and job specification-
Unit: 4 (Four)
RECRUITMENT
Recruitment is the process of searching for and obtaining applications so as to build a pool of job
seekers from whom the right people for the right jobs may be selected.
The purpose of recruitment is to build a pool of applicants.
Recruitment represents the first contact an organization makes with potential employees.
It is through recruitment that many individuals will come to know a company and eventually
decide whether they wish to work for it.
1)
a.
b.
c.
d.
e.
f.
It is an ongoing process because employee leave the firm in search of greener pastures-some
retire and some die in the saddle.
More importantly, an enterprise grows, diversifies, takes over other units-all necessitating
hiring of new employees.
In fact, the recruitment function stops only when the company ceases to exist.
Theoretically, recruitment process is said to end with the receipt of application.
FACTORS AFFECTING RECRUITMENT
External factors
Supply and demand- If the demand for a particular skill is high relative to the supply, an
extraordinary recruiting efforts may be needed. The situation of demand and supply of specific
skills affects recruitment.
Unemployment rate- If unemployment rate is high, recruitment process becomes simpler
because large number of people can be attracted with minimum effort.
Labor market- Availability of manpower in a local area, specially for non-managerial,
supervisory and middle- management positions and in the country level for executive and
professional positions has effect on recruitment.
Political-legal- Reservations of jobs for scheduled castes, scheduled tribes, minorities and
other ethnic and backward classes, child labor act have effect on recruitment.
Sons of soil- Preferences to local or people of their respective state in matters of employment.
Image- It is the perception of the job-seekers about the company that matters in attracting
qualified prospective employees.
2. Internal factors:
Recruitment policy- Recruiting internally or externally, recruitment of local citizens, policy of
temporary and part time workers.
b.
Human resource planning- A company cannot attract prospective employees in sufficient
numbers and with required skills overnight. It takes time. Effective HRP greatly facilitates the
recruiting efforts.
c.
Size of the firm- Bigger the size less problematic.
d.
Cost- Cost incurred in recruitment process, must operate within budgets, multiple job
openings simultaneously may minimize cost.
e.
Growth & expansion- An organization going on growth and expansion will have more
recruiting on hand than the one which finds its fortune declining.
RECRUITMENT METHODS
1.
Internal methods:
v Job posting, employee referral, human resource inventory search
q Internal sources
a)
Present employees- Promotion, transfers, job rotation
b)
Employee referrals- finders fees, Microsoft, Wipro, Infosys, Texas instrument
c)
Formers employees- Retired employees may be willing to come back on part time basis, may
recommend someone, people who have left the company for some reasons or other are willing to
come back and work
d)
Previous applicants- Although not truly an internal source, can be contacted quickly to fill an
unexpected opening.
a.
2.
a)
b)
c)
d)
e)
f)
g)
h)
i)
External methods/sources:
Advertisement
Professional or trade associationsEmployment exchangeUniversity/collegesWalk-ins, write-ins and talk-insConsultantsContractorsCompetitorsE-recruiting-
ALTERNATIVES TO RECRUITMENT
Organizations search for alternatives to recruitment because of the cost of recruiting. The
alternatives to recruitments are:
a)
Overtimeb)
Employee leasing- Staff outsourcing, paying charges to a leasing company or consulting firm
that handles payroll, employee benefits and routine HR functions for the client company.
c)
Temporary employment
Unit- 5 (Five)
SELECTION
Selection is the process of choosing among people who apply for work with an
organization. Selection process is a series of steps used to decide which recruits should be hired.
Steps in selection:Application form evaluation-> selection tests-> selection interview-> reference checks->
physical examination-> hiring decision
Selection methods
Qualification and experience method, work proficiency method, written test method, interview
method, written test and interview method, comprehensive selection method.
Selection Tests
a. Intelligence tests
Tests of general intellectual abilities. They measures not a single trait but rather a range of
abilities such as- reasoning, vocabulary, verbal fluency, numerical abilities, memory etc.
b. Aptitude tests
It measures whether an individual has the capacity or latent ability to learn a given job if given
adequate training. A capacity to learn in the future. To select person who will show a higher
degree of success after the training period. Specific capacities or aptitudes are- mechanical,
clerical, linguistic, musical, academic etc.
c.
Achievement tests
Concerned with what one has accomplished. When applicants claim to know something, an
achievement test is given to measure how well they know it. Trade tests such as- electricians,
typing, dictation, computer operator, machinists etc. It helps to shows the demonstrable
relationship and job performance.
d. Personality tests
It measures personality attributes of candidate such as emotional stability, confirmity,
agreeableness, extroversion, smartness etc.
e.
Interest tests/Vocational tests
Most organization realize that a person who is interested in a job or tasks will do much better
than who is uninterested. In this test applicants is asked whether s/he likes, dislikes the particular
occupation, activities, peoples. Interest in specific profession and occupation is tested. Measures
candidates preference in different types of job.
f.
Situation tests
It evaluates the candidates behavior in a particular situation or in a situation which is similar to
some aspects of the job to be done in the future.
g. Test batteries
This test helps to fit candidate with wide array of jobs. This test covers abilities such as- verbal,
numerical, intelligence, finger and manual dexterity etc.
Selection Interview
An interview is a procedure designed to obtain information from a person through oral responses
to oral inquiries.
A selection procedure designed to predict future job performance on the basis of applicants oral
responses to oral inquiries.
Managers uses several types of interviews, such as: selection, appraisal and exit interviews
Types of selection interviews - Gary Dessler
1.
Stuctured or Directive interview: An interview following a set sequence of questions.
The questions and acceptable responses are specified in advance and the responses are rated for
appropriateness of content.
2.
Unstructured or Nondirective interview: An unstructured conversational- style
interview in which the interviewer pursues points of interest as they come up in response to
questions. Generally no set format to follow. Interview for the same job may or may not get the
similar questions. A few questions may be specified in advance.
3.
Situational interview: A series of job related questions that focus on how the candidate
would behave in a given situation. Asks interviewees to describe how they would react to a
hypothetical situation today or tomorrow.
4.
Behavioral interview: A series of job related questions that focuses on how the
candidate reacted to actual situations in the past. Asks interviewees to describe how they reacted
to actual situations in the past.
5.
Job related interview: A series of job related questions that focuses on relevant past job
related behaviors. Asks job related questions to draw conclusions about what the applicants on
the job performance will be based on his or her answers to questions about past experiences.
6.
Stress interview: An interview in which the applicant is made uncomfortable by a series
of often rude questions. This technique helps identify hypersensitive applicants and those with
low or high stress tolerance.
7.
semi-structured interview: major questions to be asked are planned in advance and are
same for all candidates but other questions vary from candidate to candidate. Interviewer are
provided some flexibility.
Puzzle questions: Recruiter for technical, finance, and other types of job like to use them to see
how candidates think under pressure. E.g. An interviewer at Microsoft asked a tech service
applicant this: Mike & Todd have $ 21 between them. Mike has $ 20 more than Todd. How
much money has Mike and how much money has Todd?
Administering interview:
Types of validity
Content validity- such a test can approximate the work to be done on the job.e.g. Typing
test
ii)
Construct validity- is the degree to which a particular trait is related to successful
performance on the job. Measurement of psychological quality of applicants such as intelligence
(abstract in nature). Usually conducted by industrial psychologist by observig various behavior of
the applicant and measuring how these behavior or traits relate to the job.
iii)
Criterion related validity- the degree to which a particular selection device accurately
predicts the important elements of work behavior. Relationship between the test scores and job
performance.
i)
Predictive validity can be used as screening device where as concurrent validity acts on current
employees.
Unit- 7 (Seven)
TRAINING AND DEVELOPMENT
Training refers to the imparting of specific skill, abilities and knowledge to employee
( development of those employees who do not supervise activities of others, operative level)
System and practices get outdated due to new discoveries in technology, including technical,
managerial and behavioral aspects. In this context training enhances the knowledge, skills and
attitudes of employees to increase efficiency and effectiveness on the prsent job as well as
expected future job.
The objective of training is to achieve a change in the behavior of those trained. It is expected
that employees apply their newly acquired knowledge & skill on the job in such a way as to aid
in the achievement of organizational goal.
Need of training
Training directly contributes to the development of human resources. It is the most widely used
HRD mechanism in the world for the development of human resources. It plays a great role in
determining the efficiency and effectiveness of the organization.
-
Improved performance
Fill manpower needs
Prevent obsolescence
Aid in solving operational problems
Attitude formation
Improve health and safety
Benefit to employees themselves
Collection and analysis of task related information- performance standards for each task are setdetails are found about how tasks are done- training needs are identified for effective task
performance. Job description, job specification, job performance standard
3. Performance analysis method
i.
Organizational performance method- specifies desired performance standard. Overall
performance such as- goal achievement, production performance, quality control, sales
performance,cost, absenteeism, labour turnover,accident rates etc. It determines the overall training
needs.
ii.
Employee performance analysis- identifies actual performance on the current job.
Performance deficiencies and problem faced by the employees are identified to determine
training needs through- employees performance appraisal reviews, career planning discussion,
exit interview, performance test etc.
4. Supervisory recommendation method
In this method supervisor identify gap in knowledge and skills and recommend needed training
for the employees.
5. Training need survey methodIn this method direct questioning is used to gather opinion about training needs
through individual survey (each employee), group survey (group of present employees, former
employees and supervisors). The result of survey becomes training needs. Competency surveyexperts are asked to give opinion on desired competencies to perform the job effectively. This
desired competencies determines training needs.
TRAINING PROCESS
1.
Organizational objectives and strategies- what business are we in? At what level of
quality do we wish to provide this product or service? Where do we want to be in the future?
2.
Assessment of training needsJob requirement employee capability = training needs
3. Establishment of training goals- clear behavioral standard of expected results are necessary so that
training programme can be effectively designed and results can be evaluated. It should be
SMART.
4. Designing training programme- every training programme must address certain vital issuesi) who are the participants or trainees
ii) who are the trainers
iii) what methods and techniques are to be used for training
iv) what should be the level of training
v) what learning principles are needed
vi) where is the programme conducted
(vi) how far the program has been useful must be judged to get feedback.
5. Implementation of training programme- once the training programme has been designed, it needs
to be implemented. Programme implementation involves:
i) deciding the location and organizing training and other facilities
ii) scheduling the training programmes
iii) conducting the programme
Off-the-job training
LecturesSeminars- small group meeting conducted according to an organizational plan. Generally
trainees sit facing one another around a conference table where instructor introduce the topics
and invites views from the participants on problem areas related to the topics. Participants are
expected to make some views and ask questions. Learn not only from the instructor but also from
each other.
Role playing- trainees are assigned parts to play infront of the class. The role players are
provided either with written or oral descriptions of a situation and the role they are to play. It
provides an opprtunity for trainees to actually put in to practise the knowledge they have
observed from text book, lectures and discussions.
Simulation- a techniques that duplicates as nearly as possible the actual conditions encountered
on the job. It is abstraction of real working conditions in the lab or class room. Trainees are
placed in such an artificial environment which looks alike the real working place & condition.
Case study- from the written description of the actual business situation the trainees determine
problems, analyze causes, develop alternative solutions and select the best alternatives as
accurately as possible and implement it as manager faces and tackles. Provides opportunity to
expose their analytical and judgemental abilities.
Evaluating training programme
The main objective of evaluating the training programme is:
6.
1.
a.
b.
c.
d.
2.
a.
Improved understanding of how & why trainees act toward others and how their action affect
others.
Insight in to why others act the way they do
Improved listening skill
Insight in to how group operates
Increased tolerance & understanding of others
Experimentation with new ways of acting toward people & feedback about how these new ways
affect people
Group experience designed to provide maximum possible opportunity for the individuals to
expose their behavior, give & receive feedback, experiment with new behavior & develop
awareness of self & of others.- Chris Argyris
1.
Transactional analysis
Used to improve interpersonal relations. In TA trainess are taught to analyze their interactions
with others in terms of ego state being expressed. Basic assumptions of TA is that every
individual personality holds three ego states: the parent, child and adult. The parent state is an
ego state of authority & superiority. They are usually dominant, scolding and authoritative and
they use frequently such words as should, ought and mustnt. The child contains all the
influence that are natural to an infant, that is why they are emotional and acts according to the
feeling of moment. So in this ego state person may be obedient or manipulative, charming at one
moment and repulsive the next. The adult stage is objective and rational. The adults deals with
hear & know reality, listens with an open mind, state opinions, and actively engaged in
probability estimating & rational decision making. It has been suggested that one who generally
is low in parent, high in adult and high in child is likely to be most effective in dealing with
others.
3. Lecture/seminar course
4. Simulation exercise etc.
Unit- 8 (Eight)
CAREER PLANING AND DEVELOPMENT
A career is a sequence of positions occupied by a person during the course of a lifetime.Decenzo & Robbins
Career is a sequence of separate but related work activities that provides continuity, order and
meaning in a persons life.- Edwin Flippo
A career is all the jobs that are held during ones working life.
A career path is the sequential pattern of jobs that form a career.
Career goals are the future positions one strives a part of career.
Career planning is the process by which one selects career goals and the path to these goals.
The main purpose of career planning is to integrate individuals and organizational growth needs.
It helps to develop individuals and groups, provides opportunities and challenges and
strengthens work cultures.
To increase managerial competence
To attract competent person and retain them in the organization
CAREER DEVELOPMENT
Career development consists of personal improvements undertaken by the individual
employee, training, development and educational programs provided by the organization and
various institutes.
The career development is the process of guiding the placement, movement, and growth of
employees through assessment, planned training activities and planned job assignment.
The most important aspect of career development is that every employee must accept their
responsibility for development.
Various career development actions prove useful if an employee is committed to career
development.
The career development actions are:
Job performance- Employee must prove that their performance on the job is to the level of
standards established, if they wants career development.
Exposure- They should expose their skills, knowledge, qualifications, achievements,
performance etc. to those who take the decision about the career progress.
Resignation- Employee may resign the present job, if they find career opportunities elsewhere
are better than those of the present organization.
Change the job- Employees who put organizational loyalty above career loyalty may change
the job in the same organization if they find that career opportunities in other jobs in the same
organization are better than those of present job.
Career guidance- Counseling provides, information, advice and encouragement to switch over
to other career or organization, where career opportunities are better.
So, there are two types of mobility in career development actions- internal and external
mobility.
Why Career development program?
1.
Growth opportunities
2.
3.
4.
5.
6.
Sabbaticals
For more see: HRM- Decenzo and
Robbins
Individual career development is a three-step self-assessment process:
Identification and organization- Identify and organize your skills, interests, work-related
needs, and values.
Conversion into general fields and a specific goals- Convert these inventories into general
career fields and specific job goals.
Testing against realities- Test these possibilities against the realities of the organization or the
job market.
Unit- 9 (Nine)
PERFORMANCE EVALUATION
Once the employee has been selected, trained & motivated the next step of MGMT is to find out
how effective it has been at hiring and placing. The tools used to ascertain whether an employee
has shown her/his best performance on a given job is called performance evaluation. It is the
assessment of an individuals performance in a systematic way against such factors as job
knowledge, quality & quantity of output, initiative, leadership abilities, dependability,
cooperation, judgement etc. The assessment is not only concerned with past performance, it is
also concerned with potentials of the employees for future performance.
Pupose of performance evaluation
The overall objectives of PE is to improve the efficiency of an employee by attempting to
mobilize the best possible efforts from individuals employed in it. Such evaluation achieves four
objectives includiing the salary reviews; the development & training of individuals; planning job
ratation and assistance promotion.- Cummings
PE plans are designed to meet three needs, one of the organization & the other two of the
individuals.
i) They provide systematic judgements to back up salary increases, transfers, demotions or
terminations.
ii) They are means of telling a subordinate how they are doing and suggesting needed changes in
their behavior, attitudes, skills or job knowledge. They let them know where they stands with the
boss.
iii) They are used as a base for coaching and conselling the individual by the superior.
3.
Forced choice- developed form of checklist, where two or more statement is provided to
raters and raters has to identify which statement is most descriptive of the individuals being
evaluated. The actual assessment is done by HR department. The main advantage of this method
is that it reduces biasness because rater doesnt know the right answer.
4.
Critical incident- this approach focuses on certain critical behavior of an employee that
makes all the differences between effective and non effective performance on the job.
Supervisor directly observes & records examples of behavior under the categories that indicate
effective or ineffective performance frequently through out the year. This procedure can provide
a sound basis for feedback to the individual so it is useful for devlopmental purpose. The danger
is taht it may give the employees the impression that everything they do will be recorded which
may harass them.
5.
Graphic rating scale- this system consists of several numerical scales each representing a
job related performance criteria such as- dependability, initiative, output, attendence, attitude,
cooperation etc. Each scale ranges from excellent to poor. The rater checks the appropriate
performance level on each criteria and computes the employees total numerical score.
6.
Behaviourally anchored rating scales (BARS)
Management by objective
MBO is a process that converts organizational objectives in to individual objectives.
Steps of MBO
- Goal setting- generally supervisor & subordinates work together to establish goals.
Action planning- means are determined to achieve ends.This step includes identifying the
activities necessary to accomplish the objectives, establishing the relationship between these
activities, estimating time requirement and determining the resources required to complete each
task.
Self control- subordinate themselves systematically monitor, measure and review their own
performance.
Periodic review- the actual level of goal attainment is compared with the goals agreed upon.
The evaluator explores reasons for goal that were not met and for the goals that were exceeded.
Necessary corrective actions are taken. These reviews should take place at least two to three
times a year.
Central tendency- reluctance to make extreme ratings in either direction; the inability to
distinguish between and among ratees; a form of range restriction. Central tendency error prone
rater rates all employees as average.
Inappropriate substitutes for performance- in many jobs it is difficult to get consensus on what
is a good job, and it is even more difficult to get agreement on what criteria will determine
performance. As a result appraisal is frequently made by using substitutes for performance;
criteria that, it is hoped, closely approximate performance and act in its place.
Suggestions for improved performance appraisal: i) behaviorally based measures ii) combine
relative and absolute standard iii) ongoing feedback iv) multiple raters v) selective rating, trained
appraisers, peer evaluations, post appraisal interview, rewards to accurate appraisers.
Who should do the appraising?
1.
The immidiate supervisor
2.
Peer appraisals
3.
Rating committees
4.
Self ratings
5.
Appraised by subordinates
6.
360 degree feedback- ratings are collected all around an employees, from supervisors,
subordinates, peers and internal & external customers- a complete survey on individuals
Unit- 10 (Ten)
COMPENSATION ADMINISTRATION
Compensation refers to all forms of financial returns, tangible service, and benefits employees
receive as part of an employee relationship.
-Milkovich
Designing pay structure that will attract, retain and motivate the competent employees and which
is perceived as fair by the employees, by considering the paying capacity of the organization is
compensation management.
Purpose:
Establish fair & equitable pay system
Attract & retain competent human resources
Improve motivation & morale of employees
Improve image of the organization as a fair pay employer
Comply with legal framework related to compensation
Compensation administration
Steps :
1.
Job analysis- process of describing the duties of a job, authority relationship, skills
required, conditions of work and additinal relevant informations.
2.
Jobevaluation- systematically determining the value of each job in relation to all jobs
within the organization. JE seeks to rank all the jobs in the organization & place them in a
hierarchy that will reflect the relative worth of each job.
3.
Wage & salary survey- published surveys, consultant & agencies, advertisement, informal
communication.
4.
Compensation structure- ranking, market rates for similar job, creation of job grades
Difference between job evaluation & performance evaluation
q Job evaluation
i)
The job is rated keeping in view such factors as responsibilities, experience,
qualifications, skills, working conditions etc required for performance of the job.
ii)
Job is rated before employee is appointed
iii)
Purpose is to establish satisfactory wage differentials
iv)
Not compulsory
v)
JE comittee & experts does JE
q Performance evaluation
i)
Employee is rated on the basis of performance.
ii)
Performance evaluation takes place after the employees has been hired & placed on the
job.
iii)
Purpose is to reward, award, punish, assess training need
iv)
Compulsory & done regularly
v)
Performance evaluation is done by peers, employee themselves, supervisors, group of
people or combination of these.
Methods of job evaluation
Ranking method- worth of each job is assessed on the basis of its importance & content than
compared with each other & rank of each job is determined.
2. Grading method- at first,the number of grade is decided; second, factors corresponding to these
grades are developed; third, basic information about job are collected through job analysis;
fourth, after analyzing these informations jobs are matched with the grades. The degree of skill,
responsibility and other job characteristics are taken in to consideration while forming the job
grade.
3. Factor compariion methodi)
Selection of key factors
ii)
Key factors may be- mental requirements, skills, physical efforts, job conditions etc.
iii)
These factors are assumed to be constant for all jobs.
iv)
All the jobs are compared one- by- one with the key factors
v)
The worth of the job is obtained by adding together all the point value.
vi)
It uses pay rate for each compensable factors.
vii)
Methods of job evaluation
4. Point method- evaluates the compensable factors. Uses points instead of pay rates according to
the level/ degree of compensable factors.
1.
i)
Compensable factors are determined- responsibilities, skills, efforts, job conditions etc.
Each factor is further subdivided in to sub factors.
ii)
Determine the level of factors- several levels are created for each factor.
iii)
Allocate points to sub factors and levels
iv)
Apply the point system matrix.
Unit- 11 (Eleven)
INDIECT FINANCIAL COMPENSATION
Benefits are membership based rewards offered to all employees regardless of performance.
It should not be expected to motivate employees.
Absence of adequate benefit can contribute to employee dissatisfaction and increased
absenteeism and turnover.
Benefits: Something for everybody
Types of benefits
1.
Legally required benefits: certain benefits must be supplied by the organizations for its
employees, regardless of whether it wants to or not. Such as social securities,unemployment
compensation, workers compensation, disability
2. Voluntary benefits: rest period, holidays-dashain, tihar, vaccations-paid leave, sick leave, leave
of absence- 14 days, pension & gratuity progarmmes, insurance, study leaves etc.
SERVICES
Those facilities which is provided by the organization at no cost to the employee or a significant
reduction from what might have to be paid without the organizations support. Such as- company
sponsored events, counselling, cultural activities, credit unions, housing, free tea/coffee,
discount, company picnic, educational assistance etc.
Trends in benefits & services:
Cafeteria style of benefits: the cafeteria approach allows employees to pick and choose those
benefits that are desirable. Core benefits are provided to all employees, remainder of the money
to be spent on benefits left to the decision of each employee.
INCENTIVES
Monetary benefits paid to employees for outstanding performance.
Given in addition to wage & salary
Variable pay linked to performance
Types of incentives
1.
Individual incentives: reward linked with the individual performance. Individual
incentive plans are:
a)
Piece rate- compensation is based on number of units produced. Used for production worker.
b)
Commissions- based on sales performance in terms of value. Used for sales personnel.
c)
Bonus- one-time lumpsum payments for meeting performance goal. Used for managerial &
professional employees.
2. Group incentives- reward linked to the combined performance. Where task are interdependent
and requires team work and the output of individual employee canot be measured such incentive
is provided. Bonus, commission, piece rate.
3.
Organizational incentives- reward linked with the overall performance of the
organization.
a)
Scanlon plan- it is based on the ratio of labor cost to productivity. All employees are entitled
to a share of saving in labor cost through bonus payments (productivity gain sharing).
b)
Suggestion plan- reward for useful ideas for improvement of organizational effectiveness
from the employees.
c)
Employee shares some portion of profit.
Unit-12 (Twelve)
HEALTH AND SAFETY
The life of industrial workers is full of risks and hazards. Every year thousands of workers are
injured in factories and mines. The injuries may be caused as a result of any unsafe activity, or as
a result of some unsafe work conditions or unsafe acts of employees themselves, or defective
plant or shop lay out, inadequate ventilation, unsafe and insufficient lighting arrangements, or
insufficient space for movement inside the plant. One of the important consequences of all this is
increased dangers to human life. Partial disablement, total disablement, death.
Safety means freedom from the occurrence or risk of injury or loss.
Industrial safety or employee safety refers to the protection of workers from the danger of
industrial accidents.
Accident is an unplanned and uncontrolled event in which an action and reaction of an object, a
substance, a person, or a radiation results in personal injury.
Causes of accidents:
Human causes- carelessness, daydreaming, intoxication, inability to do the job, or other human
deficiency etc.
Environmental causes tools, equipment, physical plant & general work environment.
Among both these sources, the human factor is more responsible for the vast majority of
accidents.
Accident prevention measures include:
Education
Skill training
Engineering
Protection
Regulation enforcement as
Health- a state of complete physical, mental and social well being and not merely the absence of
disease or infirmity.- WHO
Industrial health refers to a system of public health and preventive medicine which is applicable
to industrial concerns.
Industrial health is: i) the prevention and maintenance of physical, mental & social well being of
workers in all occupations, ii) prevention among workers of ill health caused by the working
conditions, iii) protection of workers in their employment from risks resulting from factors
adverse to health and iv) placing and maintenance of the worker in an occupational environment
adapted to their physical & psychological equipment.
The basic objective of industrial health is the prevention of disease and injury rather than the
cure of disease.
Unit-13 (Thirteen)
LABOUR RELATIONS
Labor relations are the complex of interrelations among workers, managers and government.
Employees, employers, their respective associations, government and judiciary are the parties
which have stakes in labour relations.
Employees perceives LR as a method to improve their conditions of employment, to voice any
grievances, to exchange views and ideas with management and to share in decision making.
Trade unions look to LR in order to secure improved terms and conditions of employment and
to obtain improved status for the workers in their work.
Employers have economic power in their hands and use it to affect workers destiny. They
understand LR as a means to motivate workers and to sustain their commitment to work.
The role of employers association is relevant in as much as they represent employers in
collective bargaining and develop machinery for avoidance or settlement of disputes.
The government seeks to protect the interest of both employers as well as employees. Constitute
wage boards, labour courts, tribunals, and enacted a series of labour acts and policies.
The judiciary is relevant as it has the authority to settle any dispute and to review any
legislation, particularly when it is against the constitutional provisions.
Industrial dispute
Industrial dispute mainly relate to the strife between employers and employee.
Industrial disputes mean any dispute or differences between employers and employers, or
between employers and workmen, or between workmen and workmen, which is connected with
the employment or non-employment or terms of employment or with the conditions of labour of
any person.- Industrial Dispute Acts, 1947, India
Methods of settlement
1. Collective bargaining- representative of employee and management sit together and negotiate to
settle the dispute. The collective bargaining process consists the following steps: i) organizing &
certification, ii) preparation for negotiation iii) negotiation iv) ratification v) contract
administration.
2. Conciliation- a process by which representative of workers and employers are brought together
infront of third party, conciliator, with a view to persuading them to arrive at an agreement by
mutual discussion between them. The third party may be an individual or group of people.
Conciliator works as facilitator only, does not impose its views or decisions .
3. Mediation-where third party plays more active role and suggests various proposals for settlement
ofdispute but parties involved in the disputes are free to accept or reject such proposals.
4. Arbitration- is a procedure in which a neutral third party studies the bargaining situation, listens
to both the parties and gather information and then makes recommendations that are binding on
the parties.
5. Adjudication- means a mandatory settlement of industrial dispute by a labour court or tribunal.
Preventive measures:
1.
Institution of labor welfare officer & labor welfare work
2.
Works committees
3.
Bipartite & tripartite bodies
4.
Grievance procedures
5.
Workers participation
6.
Code of discipline, rules regulations etc.
7.
Collective bargaining
Discipline
Discipline- adherence to rules, regulations, procedures, and standard of acceptable behavior in an
organizational setting.
Disciplinary problems:
Attendance related- late for work, absenteeism, leaving work without permission, habitual
tardiness, abuse of leave etc.
Job behavior related- insubordination, failure to obey safety rules, defective work, not reporting
accidents, drunk, gambling, fighting on the job, destruction of property etc.
Dishonesty related- theft, information falsification, punching time card of others, concealing
defective work etc.
Outside activities related- unauthorized strike, working for competing firms, outside criminal
activities, embrassing speeches, wage garnishing etc.
Disciplinary action:
i) Oral warning
ii) written warning iii) suspension
iv) Pay cut
v) demotion
vi) dismissal
Grievances
Grievances are employees perception of unfair treatment on the job.
When employees complaint is brought to the notice of management, it becomes a grievance.
Grievance is a written complaint filed by an employee claiming unfair treatment.
Causes of grievances
1.
Interpretation differences
2.
Management practices
3.
Labor union practices
4.
Personality traits
5.
Working conditions
Handling employee grievances
1.
Open door policy- Employees are invited to walk in any time and express their
grievances to higher level management.
2.
Legal compliance- Management takes legalistic view in handling grievances. It follows
the contract with employees and union. Handles the grievances as specified in the contract.
3.
Grievance procedure:
Grievant Supervisor (verbal complaint)
Grievant Department head (written complaint)
Grievant Grievance committee (appeal for review)
Grievant Top management ( appeal for review)
6. Performance evaluation7. Repatriation- this is the problem of returning home after success or failure in the foreign
assignment. If an organization fails to foresee the problems of repatriation, it will bring another
big problem on the part of expatriates as well as the organization itself.
Five factors important in international assignee success & their components:
1.
Job knowledge & motivation- managerial ability, organizational ability, imagination,
creativity, administrative skills, alertness, responsibility, industriousness, initiative & energy,
high motivation, frankness, belief in mission & job, perseverance
2.
Relational skills- respects, courtesy & fact, display of respect, kindness, empathy, nonjudgmental, integrity, confidence
3.
flexibility/ adaptability- resourcefulness, ability to deal with stress, flexibility, emotional
stability, willingness to change, tolerance for ambiguity, adaptability, independence,
dependability, political sensitivity, positive self image
4.
Extra-cultural openness- variety of out side interests, interest in foreign culture,
openness, knowledge of local languages, outgoingness & extroversion, overseas experience
5.
Family situation- adaptability of spouse and family, spouses positive opinion,
willingness of spouse to live abroad, stable marriage