UNIT – 3

HUMAN RESOURCE MANGEMENT

Behind the production of every product or service there is an human mind, effort and man hours
(working hours). No product or service can be produced without help of human being. Human being is
the fundamental resource for making or constructing anything. Today many experts claim that machines
and technology are replacing human resource and minimising their role or effort. However, indeed,
machines and technology are built by the humans; they need to be operated or at least monitored by
humans. Maybe because of this reason, companies have continuously been searching for talented, skilled
and qualified professionals to further develop latest machines and technology, which again have to be
controlled or Monitored by humans to bring out products.

It is undisputed fact that humans are being replaced by artificial intelligence which means robots. But all
jobs cannot be handed over to Robots, to say in other words robots have its own limitations and all roles
cannot be handled by robots.Though British theoretical physicist Stephen Hawking,Cambridge
professor expressed about destruction of middle-class jobs due to raise of artificial intelligence,he still
felt that natural intelligence or need for application of human mind is inevitable in certain roles.

Meaning:

Human Resource Management: Human resource management is the process of managing the human
resources of an organization in tune with the vision of the top management.

Human Resource Management is the process of recruitment and selecting employee, providing
orientation and induction, training and development , assessment of employee (performance of
appraisal), providing compensation and benefits, motivating, maintaining proper relations with
employees and with trade unions, maintaining employees safety, welfare and healthy measures in
compliance with labor laws of the land.

Why name 'Human Resource Management'?

Human: refers to the skilled workforce in the organisation.

Resource: refers to limited availability or scarceness.
Management: refers how to optimize and make best use of such limited and a scarce resource so as to
meet the ordination goals and objectives.

Altogether, human resource management is the process of proper and maximise utilisation of available
limited skilled workforce. The core purpose of the human resource management is to make efficient use
of existing human resource in the organisation. The Best example at present situation is, construction
industry has been facing serious shortage of skilled workforce. It is expected to triple in the next decade
from the present 30 per cent, will negatively impact the overall productivity of the sector, warn industry
experts.

Every organisations' desire is to have skilled and competent people to make their organisation more
effective than their competitors. humans are very important assets for the organisation rather than land
and buildings, without employees ( humans ) no activity in the organisation can be done. Machines are
meant to to produce more goods with good quality but they should get operated by the human only.
Definitions:

Many great scholars had defined human resource management in different ways and with different
words, but the core meaning of the human resource management deals with how to manage people or
employees in the organisation.

Edwin Flippo defines- HRM as ―planning, organizing, directing, controlling of procurement,

development, compensation, integration , maintenance and separation of human resources to the end that
individual, organizational and social objectives are achieved.‖

The National Institute of Personal Management (NIPM) of India has defined human resources –
personal management as ―that part of management which is concerned with people at work and with
their relationship within an enterprise. Its aim is to bring together and develop into an effective
organization of the men and women who make up enterprise and having regard for the well – being of
the individuals and of working groups, to enable them to make their best contribution to its success‖.

Human Resource Management

For any organisation to function effectively, it must have resource of men (Human Resource), money,
materials and machinery. The resources by themselves cannot fulfill the objectives of an organisation,
they need to be collected, co-ordinated and utilised through human resources. And, the effective
management of human resources is also vital. Hence, Human Resource Management (HRM) has
emerged as a major function in organisations.Human Resource Management is the organizational
function that deals with issues related to people such as compensation, hiring, performance management,
organization development, safety, wellness, benefits, employee motivation, communication,
administration, and training.

The administrative discipline of hiring and developing employees so that they become more valuable to
the organization.

Human Resource management includes:

1. conducting job analyses,

2. planning personnel needs, and recruitment,
3. selecting the right people for the job,
4. orienting and training,
5. determining and managing wages and salaries,
6. providing benefits and incentives,
7. appraising performance,
8. resolving disputes,
9. communicating with all employees at all levels. Formerly called personnel management.
10. Maintaining awareness of and compliance with local, state and federal labor laws.
11. These are also called as functions of human resource management for the purpose of effect
you utilization of human resource.
Objectives of HRM

Societal objective.To be socially responsible to the needs and challenges of society while minimizing
the negative impact of such demands upon the organization. The failure of organizations to use their
resources for society's benefit may result in restrictions. For example, societies may pass laws that limit
human resource decisions.

Organizational objective. To recognize that HRM exists to contribute to organizational effectiveness.

HRM is not an end in itself; it is only a means to assist the organization with its primary objectives.
Simply stated, the department exists to serve the rest of the organization.
Functional objective.To maintain the department's contribution at a level appropriate to the
organisation's needs. Resources are wasted when HRM is more or less sophisticated than the
organisation demands. A department's level of service must be appropriate for the organisation it serves.

Personal objective. To assist employees in achieving their personal goals, at least insofar as these goals
enhance the individual's contribution to the organisation. Personal objectives of employees must be met
if workers are to be maintained, retained and motivated. Otherwise, employee performance and
satisfaction may decline, and employees may leave the organisation.

Nature of Human Resource Management

Human Resource Management involves management functions like planning, organizing, directing and
controlling

 It involves procurement, development, maintenance of human resource

 It helps to achieve individual, organizational and social objectives
 Human Resource Management is a multidisciplinary subject. It includes the study
of management, psychology, communication, economics and sociology.
 It involves team spirit and team work.
 It is a continuous process.

HR manager

The Human Resource Manager is a mid-level position responsible for overseeing human resources
activities and policies according to executive level direction. They supervise human resources staff as
well as control compensation and benefits, employee relations, staffing, training, safety, labor
relations, and employment records.
Key responsibilities of Human Resource Manager.

Human Resource Manager is one of the most important key to open a lock hanging on the door of
success in an organisation. If an Human Resource Manager is efficient enough to handle and to take out
best from his team members any oragnisation and can achieve more from his target goals. Human
Resource manager plays an very important role in hierarchy, and also in between the higher
management and low level employees. Stated below are major responsibilities of Human Resource
Manager:-

Scope of Human Resource Management

The scope of Human Resource Management refers to all the activities that come under the banner of
Human Resource Management. These activities are as follows.
 Human resources planning :- Human resource planning or Human Resource Planning refers to
a process by which the company to identify the number of jobs vacant, whether the company
has excess staff or shortage of staff and to deal with this excess or shortage.

 Job analysis design :- Another important area of Human Resource Management is job analysis.
Job analysis gives a detailed explanation about each and every job in the company.

 Recruitment and selection :- Based on information collected from job analysis the company
prepares advertisements and publishes them in the newspapers. This is recruitment. A number of
applications are received after the advertisement is published, interviews are conducted and the
right employee is selected thus recruitment and selection are yet another important area of
Human Resource Management.

 Orientation and induction :- Once the employees have been selected

an induction or orientation program is conducted. This is another important area of Human
Resource Management. The employees are informed about the background of the company,
explain about the organizational culture and values and work ethics and introduce to the other
employees.

 Training and development :- Every employee goes under training program which helps him to
put up a better performance on the job. Training program is also conducted for existing staff
that have a lot of experience. This is called refresher training. Training and development is one
area where the company spends a huge amount.

 Performance appraisal :- Once the employee has put in around 1 year of service, performance
appraisal is conducted that is the Human Resource department checks the performance of the
employee. Based on these appraisal future promotions, incentives, increments in salary are
decided.
  Compensation planning and remuneration :- There are various rules
regarding compensation and other benefits. It is the job of the Human Resource department to
look into remuneration and compensation planning.

 Motivation, welfare, health and safety :- Motivation becomes important to sustain the number
of employees in the company. It is the job of the Human Resource department to look into the
different methods of motivation. Apart from this certain health and safety regulations have to be
followed for the benefits of the employees. This is also handled by the HR department.

 Industrial relations :- Another important area of Human Resource Management is maintaining

co-ordinal relations with the union members. This will help the organization to
prevent strikes lockouts and ensure smooth working in the company.

Personnel Management:
Personnel Management - Personnel Management is basically an administrative record-keeping function,
at the operational level. Personnel Management attempts to maintain fair terms and conditions of
employment, while at the same time, efficiently managing personnel activities for individual
departments etc. It is assumed that the outcomes from providing justice and achieving efficiency in the
management of personnel activities will result ultimately in achieving organizational success.

Defines personnel management as the planning, organizing, and controlling of the procurement,
development, compensation, integration and maintenance of people for the purpose of contributing to
the organizational goals.

Personal management versus Human resource management:

HRM has a long history of growing from a simple welfare and maintenance function to that of a board
level activity of the companies. In recent years, the focus on people management from human
capital/intellectual capital perspective is also shaping firmly. However, the hard fact is that this growth
can be generally witnessed in management literature and rarely in practice. Peripheral observation of
people management in organization can mislead the observers since, hardly there could be any
organization that is yet to rename its old fashioned title of industrial relations/ personnel /welfare/
administration department into HRM department. But, in practice, these organizations continue to
handle the people management activities the way they had been handling earlier. The reasons for this
could be many and varied. Among them, the potential reason is lack of clear understanding about the
differences between personnel/IR and HRM
BASIS FOR
COMPARIS PERSONNEL MANAGEMENT HUMAN RESOURCE MANAGEMENT
ON

Meaning The aspect of management that is The branch of management that focuses on the
concerned with the work force and most effective use of the manpower of an entity, to
their relationship with the entity is achieve the organizational goals is known as
known as Personnel Management. Human Resource Management.

Approach Traditional Modern

Treatment of Machines or Tools Asset

manpower

Type of Routine function Strategic function

function

Basis of Pay Job Evaluation Performance Evaluation

Management Transactional Transformational

Role

Communicati Indirect Direct

on

Labor Collective Bargaining Contracts Individual Contracts

Management

Initiatives Piecemeal Integrated

Management Procedure Business needs

Actions

Decision Slow Fast

Making

Job Design Division of Labor Groups/Teams

BASIS FOR
COMPARIS PERSONNEL MANAGEMENT HUMAN RESOURCE MANAGEMENT
ON

Focus Primarily on mundane activities like Treat manpower of the organization as valued
employee hiring, remunerating, assets, to be valued, used and preserved.
training, and harmony.

1. Personnel management function is often viewed as a function of the specialized staff.

Human resource management function is the responsibility of all the line managers in the organization.
2. Personnel management goal is employee orientation

Human resource management goal is organization orientation

3. Personnel management managerial function

Human resource management operative function

4.Personnel management cooperative level manager

concern Human resource management top level manager
concern.

Personnel Management and Industrial Relations:

The word personnel management is popular with different names, such as staff management,
labour management, manpower management, industrial relations and modern times as human resources
management. Industrial relations refer to the relation between the employees and management.

Features in Personnel Management:

1. Personnel management is concerned with managing people at all level in the organization

2. It is concerned with employees both as individuals and as a group

3. It is a method of helping the employees to identify and develop their potential.
4. It is a method of channelising this potential for the attainment of organizational goals.

It is required in very organization, in the form of the services of the personnel manager.
Characteristics of personnel management:

Maximum individual development: This principle stresses on the development of every person working
in an organization. Workers are able to fulfill the objectives of an organization with the minimum cost.
Hence, the employees in the organization should be properly developed. By this, employees will be able
to develop themselves to the maximum extent of their capabilities. Their ability, productivity and
efficiency can be used for achieving the objectives of the organization.

Scientific selection: For the proper co-ordination between work and workers, it is necessary to select the
right person for the right job. Workers should be selected after a careful weighing of the requirements of
the jobs on the other hand, and assessment and evaluation of the abilities and attitudes of man on the
other.

High morale: It is necessary to have high morale among the workers in an organization. For this
purpose, ideal wage policy should be offered in the organization. Workers should be motivated by
monetary and non-monetary incentives.

Dignity of labour: Human resource management specially act, so that the workers feel proud of their
work or labour. Sometimes, like ‗work is worship‘ notion should be developed in workers. This
principle requires treating every job and every jobholder with dignity and respect.

Team spirit: Team spirit must be developed in the workers. They should work collectively and they
should feel collective responsibility for the attainment of the objectives of the organization. For
this purpose, workers must have the sense of cooperation, unity and mutual trust.

Effective communication: There must be effective channel of communication between the management
and the workers. The orders of higher authorities should reach the workers, while worker‘s request and
grievances should reach the higher authorities in a proper way. If communication system is not effective,
then there will arise complex problem like mistrust, hatred and ill-will, and this in turn affects the
production of the organization.

Fair remuneration: Labour should be given fair and proper compensation for the work they rendered.
They should also be given fair incentives or rewards to recognize good performance. This develops
industrial peace.

Effective utilization of human resources: The skills and abilities of human resources should be
effectively utilized. Proper training facilities should be provided to workers. Human resource
management is an art to get the work done by the people, to get the desired result. For this employees
should be given humanly treatment in the organization.
Participation: This principle emphasizes the idea of labour participation in the management of the
enterprise. Workers participation in management aims at increasing productivity of labour by improving
co-operation between employer and employees.

Contribution to national prosperity: This principle stresses to provide a higher purpose of work to all
employees and to contribute to national prosperity. For this purpose, human resource management
should develop the sense of participation in labour to make them realize that their efforts alone can
contribute to the prosperity of the organization and of the country

Human Resource Development

Human Resource Development is the part of human resource management that specifically deals
with training and development of the employees in the organization.
Human resource development includes training a person after he or she is first hired, providing
opportunities to learn new skills, distributing resources that are beneficial for the employee's tasks, and
any other developmental activities.

INTRODUCTION
Development of human resources is essential for any organisation that would like to be dynamic and
growth-oriented. Unlike other resources, human resources have rather unlimited potential capabilities.
The potential can be used only by creating a climate that can continuously identify, bring to surface,
nurture and use the capabilities of people. Human Resrouce Development (HRD) system aims at
creating such a climate. A number of HRD techniques have been developed in recent years to perform
the above task based on certain principles. This unit provides an understanding of the concept of HRD
system, related mechanisms and the changing boundaries of HRD.

HRD concept was first introduced by Leonard Nadler in 1969 in a conference in US. ―He defined HRD
as those learning experience which are organized, for a specific time, and designed to bring about the
possibility of behavioral change‖.

Human Resource Development (HRD) is the framework for helping employees develop their personal
and organizational skills, knowledge, and abilities. Human Resource Development includes such
opportunities as employee training, employee career development, performance management and
development, coaching, mentoring, succession planning, key employee identification, tuition assistance,
and organization development.

The focus of all aspects of Human Resource Development is on developing the most superior workforce
so that the organization and individual employees can accomplish their work goals in service to
customers.

Human Resource Development can be formal such as in classroom training, a college course, or an
organizational planned change effort. Or, Human Resource Development can be informal as in
employee coaching by a manager. Healthy organizations believe in Human Resource Development and
cover all of these bases.

Definitions of HRD

HRD (Human Resources Development) has been defined by various scholars in various ways. Some of
the important definitions of HRD (Human Resources Development) are as follows:

 According to Leonard Nadler, "Human resource development is a series of organised

activities, conducted within a specialised time and designed to produce behavioural changes."

 In the words of Prof. T.V. Rao, "HRD is a process by which the employees of an organisation
are helped in a continuous and planned way to (i) acquire or sharpen capabilities required to
 perform various functions associated with their present or expected future roles; (ii) develop their
journal capabilities as individual and discover and exploit their own inner potential for their own
and /or organisational development purposes; (iii) develop an organisational culture in which
superior-subordinate relationship, team work and collaboration among sub-units are strong and
contribute to the professional well being, motivation and pride of employees." .

 According to M.M. Khan, "Human resource development is the across of increasing

knowledge, capabilities and positive work attitudes of all people working at all levels in a
business undertaking."

THE CONCEPT OF HUMAN RESOURCE DEVELOPMENT

Human resource development in the organisation context is a process by which the employees of an
organisation are helped, in a continuous and planned way to:

1. Acquire or sharpen capabilities required to perform various functions associated with their
present or expected future roles;
2. Develop their general capabilities as individuals and discover and exploit their own
inner potentials for their own and/or organisational development purposes; and
3. Develop an organisational culture in which supervisor-subordinate relationships, teamwork and
collaboration among sub-units are strong and contribute to the professional well being,
motivation and pride of employees.

This definition of HRD is limited to the organisational context. In the context of a state or nation it
would differ.

HRD is a process, not merely a set of mechanisms and techniques. The mechanisms and techniques such
as performance appraisal, counselling, training, and organization development interventions are used to
initiate, facilitate, and promote this process in a continuous way. Because the process has no limit, the
mechanisms may need to be examined periodically to see whether they are promoting or hindering the
process. Organisations can facilitate this process of development by planning for it, by allocating
organisational resources for the purpose, and by exemplifying an HRD philosophy that values human
beings and promotes their development.

Difference between HRD and HRM

Both are very important concepts of management specifically related with human resources of
organisation. Human resource management and human resource development can be differentiated on
the following grounds:

 The human resource management is mainly maintenance oriented whereas human resource
development is development oriented.

 rganisation structure in case of human resources management is independent whereas

human resource development creates a structure, which is inter-dependent and inter-related.

 Human resource management mainly aims to improve the efficiency of the employees
whereas aims at the development of the employees as well as organisation as a whole.

 Responsibility of human resource development is given to the personnel/human resource

management department and specifically to personnel manager whereas responsibility of HRD
is given to all managers at various levels of the organisation.
  HRM motivates the employees by giving them monetary incentives or rewards whereas
human resource development stresses on motivating people by satisfying higher-order needs.

THE NEED FOR HRD

HRD is needed by any organisation that wants to be dynamic and growth-oriented or to succeed in a
fast-changing environment. Organisations can become dynamic and grow only through the efforts
and competencies of their human resources. Personnel policies can keep the morale and motivation
of employees high, but these efforts are not enough to make the organisation dynamic and take it in
new directions. Employee capabilities must continuously be acquired, sharpened, and used. For this
purpose, an ―enabling‖ organisational culture is essential. When employees use their initiative, take
risks, experiment, innovate, and make things happen, the organisation may be said to have an
―enabling‖ culture.

Even an organisation that has reached its limit of growth, needs to adapt to the changing
environment. No organisation is immune to the need for processes that help to acquire and increase
its capabilities for stability and renewal.

HRD FUNCTIONS

The core of the concept of HRS is that of development of human beings, or HRD. The concept of
development should cover not only the individual but also other units in the organisation. In addition to
developing the individual, attention needs to be given to the development of stronger dyads, i.e., two-
person groups of the employee and his boss. Such dyads are the basic units of working in the
organisation. Besides several groups like committees, task groups, etc. also require attention.
Development of such groups should be from the point of view of increasing collaboration amongst
people working in the organisation, thus making for an effective decision-making. Finally, the entire
department and the entire organisation also should be covered by development. Their development
would involve developing a climate conducive for their effectiveness, developing self-renewing
mechanisms in the organisations so that they are able to adjust and pro-act, and developing relevant
processes which contribute to their effectiveness.

Hence, the goals of the HRD systems are to develop:

1. The capabilities of each employee as an individual.

2. The capabilities of each individual in relation to his or her present role.
3. The capabilities of each employee in relation to his or her expected future role(s).
4. The dyadic relationship between each employee and his or her supervisor.
5. The team spirit and functioning in every organisational unit (department, group, etc.).
6. Collaboration among different units of the organisation.
7. The organisation‘s overall health and self-renewing capabilities which, in turn, increase
the enabling capabilities of individuals, dyads, teams, and the entire organisation.

Features of Human Resource development

The essential features of human resource development can be listed as follows:

 Human resource development is a process in which employees of the organisations are

recognized as its human resource. It believes that human resource is most valuable asset of the
organisation.
  It stresses on development of human resources of the organisation. It helps the employees of
the organisation to develop their general capabilities in relation to their present jobs and
expected future role.

 It emphasise on the development and best utilization of the capabilities of individuals in the
interest of the employees and organisation.

 It helps is establishing/developing better inter-personal relations. It stresses on developing

relationship based on help, trust and confidence.

 It promotes team spirit among employees.

 It tries to develop competencies at the organisation level. It stresses on providing healthy climate
for development in the organisation.

 HRD is a system. It has several sub-systems. All these sub-systems are inter-related and
interwoven. It stresses on collaboration among all the sub-systems.

 It aims to develop an organisational culture in which there is good senior-subordinate relations,

motivation, quality and sense of belonging.

 It tries to develop competence at individual, inter-personal, group and organisational level to

meet organisational goal.

 It is an inter-disciplinary concept. It is based on the concepts, ideas and principles of

sociology, psychology, economics etc.

 It form on employee welfare and quality of work life. It tries to examine/identify employee
needs and meeting them to the best possible extent.

 It is a continuous and systematic learning process. Development is a life long process,

which never ends.

Benefits of Human Resource Development

Human resource development now a days is considered as the key to higher productivity, better relations
and greater profitability for any organisation. Appropriate HRD provides unlimited benefits to the
concerned organisation. Some of the important benefits are being given here:

 HRD (Human Resource Development) makes people more competent. HRD develops new
skill, knowledge and attitude of the people in the concern organisations.

 With appropriate HRD programme, people become more committed to their jobs. People are
assessed on the basis of their performance by having a acceptable performance appraisal
system.

 An environment of trust and respect can be created with the help of human resource
development.

 Acceptability toward change can be created with the help of HRD. Employees found
themselves better equipped with problem-solving capabilities.

 It improves the all round growth of the employees. HRD also improves team spirit in the
organisation. They become more open in their behaviour. Thus, new values can be generated.
  It also helps to create the efficiency culture In the organisation. It leads to greater organisational
effectiveness. Resources are properly utilised and goals are achieved in a better way.

 It improves the participation of worker in the organisation. This improve the role of worker and
workers feel a sense of pride and achievement while performing their jobs.

 It also helps to collect useful and objective data on employees programmes and policies which
further facilitate better human resource planning.

 Hence, it can be concluded that HRD provides a lot of benefits in every organisation. So, the
importance of concept of HRD should be recognised and given a place of eminence, to face
the present and future challenges in the organisation.

Functions of human resource Management:

Managerial Function Operative Functions

Planning Procurement of personnel

Organizing Development of personnel

Staffing Compensation of personnel

Motivating Employees benefits schemes

Controlling Maintaining good industrial relations

Record keeping

Personnel planning and evaluation

Personnel research and audit

Managerial Function:

Planning: It is concerned with manpower planning

1. To forecast future vacancies

2. To anticipate retirements promotions and transfer

3. Preparing job analysis, job description and job specifications

4. Analyzing resources of potential employees

Organizing: It is concerned with organizing manpower

1. To analysis organization structure

2. Recommending organizational changes

3. To analyze applications and determine suitability of candidates

4. Interviewing conducting test

 5. Investigating references

6. Arranging medical examination

Staffing: Staffing comprises these are functions induction, transfer/promotion, Manpower

development and training.

Induction: To ensure new recruits are provided with appropriate training,

1. Orienting new employees into their jobs

2. Reviewing their performances

3. Ascertaining training requirements

Transfer/Promotion: To utilize employees enhanced capabilities

1. Continuously analyzing job description

2. Evaluating employee qualification/performance

3. Determining further training requirement

Manpower development: To provide individual employees development

1. Developing performance standards

2. Appraising performance

3. Planning individual development program Training: It

includes the followings

1. Conducting training program

2. Evaluating training results

Motivating: Motivating comprises these are the functions payment recreation, communication, health
and safety.

Payment: To set pay scales for different job positions and considering pay scales in other organization

1. Analyzing jobs as per job description

2. Evaluating such jobs

3. Develop scales

Recreation: To provide facilities for enjoyment

1. Conducting social activities

2. Sports and games

3. Recreational activities

Communication: To provide needed exchange of information throughout the organization.

1. Developing channels and media of information system

2. Introducing suggestion scheme

3. Conducting opinion surveys

Health and safety: Prevent diseases and provide security measures

1. Providing medical facilities

2. Providing safety measures

Controlling: Controlling comprises these are the functions performances appraisal, security,
employees‘ attitude and coordination.

Performance appraisal: To appraise performance as per their duties and responsibilities

1. Developing performance evaluating system

2. Conducting performance evaluating interviews

3. Analyzing evaluation results

Security: To provide precautionary measure to prevent theft, fire etc.

1. To develop and implement security measures

2. To provide watchman

3. To organize fire fighting training

Employee attitude and coordination: To improve employees attitude and coordination of work.

1. Analyzing personal problems arrange consulting

 2. Implement improved practices

Operative Functions:

Procurement of personnel: It deal with determination of man power requirement, their recruitment,
selection, placement and orientation Development of personnel: After personnel have been obtained,
they must to some degree be developed before going to work. Development has to do with the increase
of skill, through training that is necessary for proper job performance.

Compensation of personnel: Compensation means, determination of adequate and equitable

remuneration of personnel for their contribution to organization objectives.

Record keeping: In this system personnel manager collets and maintain information which is concerned
with the staff of the organization

Personnel planning and evaluation: Under this system different types of activities are evaluated such as
evaluation of performances personnel policy of an organization and its practices, personnel audit, moral
survey and performance appraisal etc.

Personnel research and audit: This function is concerned with the research in motivational techniques
and auditing.

Job Analysis: Job analysis can be defined as the process of identifying the tasks comprising a particular
job to assess whether they could be organized in a productive manner. This will identify the main
features of the job, the major tasks undertaken, the results to be achieved, and how one job is related to
the other jobs in the organizational hierarchy. The product of job analysis is job description.

Job Description: Job description is an accurate and concise description of

(a) the overall purposes of the job (b) the principal duties of the person doing this job. The job
description emphasizes the job requirements. Clear job description constitutes the basis for advertising
the vacancy positions and for drawing up job specifications. Once individuals are selected to the posts,
job description allows them to know exactly what their roles are and what is expected of them.
Job Specification

Job specification identifies the requirements on the part of the person to perform the given job. It
provides the interviewer an understanding of the job and helps him to assess the qualities necessary for
its performance to an acceptable standard, at the time of interview. This helps him to compare the
performance of candidates objectively and to eliminate unsuitable candidates.

Manpower Planning: It is the scientific process of evolving the right quantity of right men to be
required in future at right time on the right job.

Definition: Manpower planning may be defined as a rational method of assessing the requirements of
human resources at different levels in the organization. It ends with proposals for recruitment, retention,
or even dismissal, where necessary.
Objectives of Manpower Planning:
1. Making correct estimate of manpower requirement

2. Managing the manpower according to the need of enterprises

3. Helps in recruitment and selection

4. Maintaining production level

5. Making employees development programme effecting

6. Establishing industrial peace

7. Reduction in labour costs

8. Minimization of labour costs.

Recruitment: Applications are invited at this stage for further scrutiny and short listing. Before
advertising for the position, it common to check up of the position could be filled in internally.

Selection: The process of identifying the most suitable persons for the organization is called selection.
Selection is also called a negative function because at a stage the applications are screened and short-
listed based on the selection criteria. The main purpose of selection is to choose the right person for the
right job. The job analysis, job description, and job specifications are carried out before the position is
advertised. These provide adequate insight about nature of the job, its description, and its specifications
and further focus on what type of person is to be selected for a given position. These simplify
the process of selection.

Selection process involves the following stages:

9. Initial screening/Short listing

10. Comprehensive application/bio data screening

11. Aptitude or written rests

12. Group discussion

13. Personal interviews

14. Group discussion

15. Personal interviews

16. Medical examination

17. Employment offer letter

Training and development

Training: Training is short-term process of utilizing systematic and organized procedure by which
the staff acquires specific technical knowledge and functional skills for a definite purpose. The focus
of training is the job or task.

Training Needs:

- High turnover among the new recruits

- Increase in wastage of materials

- Increase in the number of rejected units of production

- Increase in the number of customer complaints

- Increase in the accident rate

- Reduced productivity levels

- Increase in machine breakdowns

Methods of Training: There are two methods of training

A. On-the job training

B. Off-the job training

A) On-the job training: It is designed to make the employees immediately productive. It is learning
by physically doing the work. The focus here is to provide specific skills in a real situation. These
methods include:

1) Job instruction training: This is a method used for such jobs which can be performed with relatively
low skill. Here, the trainees systematically acquire skills by following routine instructions in key
processes from a qualified instructor.
2) Experiential learning: This is a modern approach to the learning process. This method is more .
used for training the senior executives. It is a technique, which empowers the manager-trainee with
the freedom of choice to act upon and the capacity to initiate, rather than simply respond, to
circumstances.

3) Demonstration: Here, the work procedures are demonstrated to the trainees. Each of the trainees is
asked to carry out the work, on a sample basis, based on his/her observation and understanding of
the demonstration.
4) Apprentice training: Those who are selected to work in the shop floor are trained as apprentices in
the factory for a brief period ranging from three months to one year, depending upon the complexity
of the training. Those who show good progress in this training are likely to be absorbed in the same
organization. Those who complete apprentice training are likely to get good jobs outside also.
B) Off-the-job training methods: provide a relatively broad idea relating to a given job or task.
These are meant for developing an understanding of general principles, providing background
knowledge, or generating an awareness of comparative ideas and practice. These methods include:

1) Lectures/talks and class room instructions: These techniques are designed to communicate specific
interpersonal, technical, or problem-solving skills. Here, the trainer can maintain a tight control over
learning. However, this method restricts the trainee's freedom to develop his/her own approaches to
learning.

2) Conferences: Conferences refer to get-together of the experts from different areas of a given
topic. These experts present their views based on their work experience and research results. When
employees participate in such events they get a feel of the real world. They may also get motivated to
perform better.

3) Seminars: Seminars are held periodically by the professional organisations for the benefit of all
the practicing managers by taking into consideration the recent advances in a specialized area.
Participation in such seminars enables the executives to get exposed to the recent developments in the
area of their interest.
4) Team discussions: This technique develops team spirit among the executives from different
departments. It also enables them to understand and appreciate each other's problems. It reinforces a
feeling of unity among those who work towards common goals.

5) Case study: This is a predominant technique followed even in premier management institutes. This
technique helps to provide an understanding of what has gone wrong in a particular case, such as
Delhi Cloth Mills (DCM). Similarly, what are the factors responsible for the success of organizations
such as Reliance or Hindustan Lever. Case study technique is a very good method of learning the
principles and concepts. However, this method has one weakness. The circumstances you are likely to
face in your life may be very different from the cases you have analyzed earlier! Case studies help to
enhance the analytical & decision making skills.

5) Role-playing: The participants are assigned roles and are asked to react to one another, as they
would do in their managerial jobs. These roles are eventually exchanged. In other words, each
participant will get a turn to play all the roles. For instance, the role-playing in a grievance-handling
situation involves two players: In the first step, the worker presents his grievance to the personnel
manager. In the second step, the worker plays the role of the personnel manager while the
personnel manager plays the role of the worker. Role-playing allows participants to understand
problems of each other. It enhances the interpersonal-handling skills.
6) Programmed instruction: It is a system of instruction within which pre-established subject matter is
broken into small, discrete steps and carefully organized into logical sequence in which, it can be
learned by the trainee. Each step is built upon the previous one. The programmed instruction
techniques can be in the form of programmed tests and manuals, or video displays. For instance,
withdrawal of money through automatic teller machines (ATMs) involves responding to programmed
instructions; working on a personal computer or internet involves responding to a series of programmed
instructions.

7) Simulation exercises: These include interactive exercises in which trainees practice their skills
on working models or in mock situations based on real-life situations.

8) Group decision-making: Group decision-making refers to the process of making decisions based on
the opinions expressed by all the concerned — may be subordinates, peers, or outside consultants. The
manager thus ensures that more people are involved in taking decisions. Each member of the group will
accept the responsibility for the decisions made as he is a party to it. This method facilitates to generate
more alternative solutions to a given problem because more people are involved in the thinking
exercise. This facilitates coordination among the groups also.
Development: Development is an activity aimed at career growth rather than immediate
performance. Employee development is the process, which helps him or her to understand and
interpret knowledge rather than teaching a specific set of functional skills. Development,
therefore, focuses more on employee's personal growth in the near future.

Placement: After training, the employee is placed in his/her position under the charge of a
manager. The new recruit is allowed to exercise full authority and is held responsible for the
results.

a) Promotion: Promotion refers to the advancement of an employee to a job with a higher

authority and responsibility. It may also carry a better compensation package. Promotion can
also be viewed as a means of filling up vacancies in the organization occurring from time to
time.

b) Demotion: Where an employee is not in a position to perform a given job, he may be

demoted or transferred to a position with a lower authority and salary. In other words, demotion
is a punishment.

c) Transfer: It is a lateral shift that moves an individual employee from one position to another.
It may be in the same department, or to a different department or location. This does not involve
any changes in the duties, responsibilities, or skills needed. The salary benefits also may remain
the same.

d) Separation: Separation refers to termination of employment. In other words, the employee

is separated from his job. In case of misconduct or misbehavior, where the employee is not in a
position to improve his performance despite notice, his/her employment is terminated. This is
also called dismissal.

e) Absenteeism: Absenteeism refers to the practice of an employee who does not report to work
for any particular reason. Absenteeism affects the productivity adversely. It becomes difficult for
the departments to cope up with the work pressures, if any particular employee is absent. As a
measure of control, the employees are not allowed to be absent without prior permission from
the management.

Wages and Salary Administration: Wages and salary administration is the process of fixing
wages/salary for different jobs in the organization through job evaluation, negotiations with the
unions, and so on.
Grievance Handling: A complaint from employees, when ignored, takes the form of a
grievance. Grievance is a complaint genuine or otherwise, about any issue relating to the job
such as about supervisor, wages, working conditions and so on. It is necessary to create an in-
build mechanism to redress the grievances, at the earliest, at the departmental level. If the
individual grievances are ignored, they may take the form of industrial disputes.

Performance Appraisal: Performance appraisal is the process of measuring and evaluating the
performance or accomplishments, including behaviour, of an employee on the job front for a
given period. The purpose is to assess the worth and value of a person to the organization. It is
also meant for assessing his/her potential for future development in an objective manner.

Why appraise the performance:

1. To assess the employee's present level of performance

2. To identify the strengths or weaknesses of individual employee

3. To provide feedback to the employee so that he can improve his/her performance

4. To provide an objective basis for rewarding the employees for their performance

5. To motivate those employees who perform

6. To check and punish those employees who fail to perform

7. To identify the gaps in performance, and thus, assess training and development needs

8. To identify the employee's potential to perform

9. To provide a database for evolving succession strategies

10. To provide a basis for many other decisions such as fixation of incentives or
increment, regularization or confirmation of the services of the employee, promotion,
transfer or demotion.

Steps in performance Appraisal:

1. Create set up performance standards

2. Mutually set identifiable and measurable

3. Measure present level of performance

4. Compare and appraise present level of performance with standard

5. Discuss the appraisal with employee

6. Identify and initiate the corrective action

Job Evaluation: An attempt to determine and compare the demands which the normal
performance of particular job makes on normal workers without taking account of the individual
abilities or performance of workers concerned. It rates the job not the rank.

Objectives:

1. To establish correct wage correct wage differentials for all jobs with in the factory

2. To bring new jobs into their proper relatively with jobs previously established

3. To help clarify lines of authority, responsibility and promotion

4. To accomplish the foregoing by means of the facts and principles, which can be readily
explained to and accepted by all concerned

5. To establish a general wage level for a given factory which will have parity with those
of neighboring factories

Advantages:

1. It is simple, inexpensive and expeditions

2. It is easily understood and easily administered

3. It helps setting better rates than the arbitrary rates based purely an judgment
and experience

4. Same unions prefer it, because it leases more room for bargaining.

Disadvantages:

1. Job may be ranked on the basis of incomplete inform action and without the benefits
of well defined standards

2. The rank position of different jobs is likely to be influenced by the prevailing wage ranks

3. No one committee number is likely to be familiar with all the jobs

 Method of Job Evaluation: It is broadly be classified as

1) Qualitative Method

2) Quantitative Method

1) Qualitative Method: It can broadly be classified as ranking or classifying the job from lowest
to highest.
A) Ranking technique: In this method, the jobs in the organization are arranged in either in the
ascending or descending order and numbered serially. The basis of such arrangement could be
the job description in terms of duties, responsibilities, qualifications needed, relative difficulty
involved in don the job, or value to the company.

Points considered:

1. Amount of work involved

2. Supervision needed

3. Extent of responsibility required

4. Difficulties involved in the work

5. Work conditions required

b) Classification Method: This is also called job-grading method. Here, the number of grades
and the salary particulars for each grade are worked out first. The grades are clearly described
in terms of knowledge, skill and so on. Major steps for job evaluation:

1. Deciding the number of grades

2. Writing grade descriptions

3. Identifying/listing of the jobs to be evaluated

4. Preparing job descriptions

2) Quantitative Method: Where point values are assigned to the various demands of a job and
relative value is obtained by summing all such point values.
a) Factor comparison method: Every job requires certain capabilities on the part of the person
who does the job. These capabilities are considered as critical factors, which can be grouped
as follows:

Mean effort Skill

Physical

Responsibility

Working conditions
Step involved in the factor comparison method:

Identify the key jobs

Rank the key job, factor by factor

Apportion the salary among each factor and rank the key jobs Compare
factor ranking of each job with its monetary ranking Develop a monetary
comparison scale

Evaluate non-key jobs based on the monetary comparison scale

b) Point-rating method: There are four widely accepted factors used in the point-rating method,
skill, effort, responsibility and job conditions each of these factors is divided into sub-factors
Skills - 1. Education and training
2. Experience
3. Judgment and initiative
Efforts - 1. Physical
2. Mental
Responsibility towards - 1. Materials or product
2. Equipment or process
3. Safety of others
4. Work of others
Merit Rating: Merit rating is the process of evaluating the relative merit of the person on a
given job. It is an essential task of the personnel manager to distinguish the meritorious
employees from the other. The data collected from this task is used for strategic decisions such
as releasing an increment in pay, promotion, transfer, and transfer on promotion to a critical
assignment or even discharge.

Objectives of Merit Rating:

 To determine salary increments

 To decide who has to be transferred, promoted, or demoted

 To discover the workers needs for retaining and advanced training

 To unfold the exceptional skills among the employees based on their innate potentials

 To guide and monitor the performance of those who are lagging behind.

Method of Merit Rating:

Ranking method: In this method, all the staff of a particular cadre or a department are arranged
either in the ascending or the descending order in order of merit or value to the firm. Though this
is a simple method, it cannot be followed where the employees in the department are many in
number.

Paired comparison method: Here, every employee is compared with all others in a particular
cadre in the department. By comparing each pair of employees, the rater can decide which of the
employees is more valuable to the organization.

Rating scale: Here, the factors dealing with the quantity and quality of work are listed and rated.
A numeric value may be assigned to each factor and the factors could be weighed in the order
of their relative importance. All the variables are measured against a three or five point scale.

Forced distribution method: Here, employees are given a set of alternatives and they have to
choose one, which reflects their understanding of the true nature of the job. Their thinking
is conditioned by the given set of answers.

Narrative or essay method: Here, the candidate is required to narrate in an essay format his/her
strengths, weaknesses, and potential to perform. Here, the candidate is not restricted by any
given set of alternatives. The candidate is free to decide what to furnish or what not to furnish.

Management by objectives (MPO): The short-term objectives standards. This method considers
the actual performance as the basis mutually agreed upon by the management and the employees
are used as performance for evaluation. It is a systematic method of goal setting. In addition, it
provides for reviewing performance based on results rather than personality traits or
characteristics. However, this is not practical at all levels and for all kinds of work in the
organizations.

Capability Maturity Model levels

Capability Maturity Model is a bench-mark for measuring the maturity of an organization‘s
software process. It is a methodology used to develop and refine an organization‘s software
development process. CMM can be used to assess an organization against a scale of five
process maturity levels based on certain Key Process Areas (KPA). It describes the maturity of
the company based upon the project the company is dealing with and the clients. Each level
ranks the organization according to its standardization of processes in the subject area being
assessed.

A maturity model provides:

 A place to start
 The benefit of a community‘s prior experiences
 A common language and a shared vision
 A framework for prioritizing actions
 A way to define what improvement means for your organization

In CMMI models with a staged representation, there are five maturity levels designated by the
numbers 1 through 5 as shown below:

1. Initial
2. Managed
3. Defined
4. Quantitatively Managed
5. Optimizing
 Maturity levels consist of a predefined set of process areas. The maturity levels are measured by
the achievement of the specific and generic goalsthat apply to each predefined set of process
areas. The following sections describe the characteristics of each maturity level in detail.

What happens at different levels of CMM?

Levels Activities Benefits

Level 1  At level 1, process is usually chaotic None. Project is Total Chaos

Initial and ad hoc
 Capability is characterized on the
basis of the individuals and not of the
organization
 Progress not measured
 Products developed are often
schedule and over budget
 Wide variations in schedule, cost,
 functionality and quality targets

Level 2  Requirement Management  Processes become easier to comprehend

Managed  Estimate project parameters like cost,  Managers and team members spend less
schedule, and functionality time in explaining how things are done and
 Measure actual progress more time in executing it
 Develop plans and process  Projects are better estimated, better
 Software project standards are planned and more flexible
defined  Quality is integrated into projects
 Identify and control products,  Costing might be high initially but goes
problem reports changes, etc. down overtime
 Processes may differ between  Ask more paperwork and documentation
projects