-
HRM Environment
- Internal Environment
- External Environment
-
HRM
-
A
- concept
-
characteristics
- Human focus
- Management Function
- pervasive function
- Continuous commitment
- Dynamic
- System
- Mutually-Oriented
-
objectives
-
Goal achievement
- Personal goals
- HRM goals
- Organizational goals
- societal goals
- Goal harmony
- Structure maintenance
- Productivity improvement
- Efficiency promotion
- change management
- Quality of Work life
-
functions
- Acquisition
- Development
- Utilization
- Maintenance
-
B
-
HRM System
-
Input
- Human Energy and competencies
- Org Plan
- HR Plan
- HR Inventory
- Job Analysis
- Labour market
-
Processing
- Acquision
- Development
- Utilization
- Maintenance
-
Outputs
- Org Related
- Goal achievement
- quality of worklife
- productivity
- profits
- readiness for change
- Employee Related
- commitment
- competence
- congruence
- cost-effectiveness
- HRM System.jpg
-
Personnel Mgmt and HRM
-
Dimension
- Personnel Management
- HR Management
-
Focus
- People as input in the production process
- People as strategic resource in the org system
-
Scope
- Concren of Personnel Dept
- Concer of all levels of managers
-
Function
- Routine function
- Strategic function
-
Job Design
- Job design based on division of labour
- Job design based on team work
-
Interest
- Organization's interest uppermost
- harmony in interests of orgs and individuals
-
Orientation
- discipline, direction and control oriented
- systems oriented with climate for growth,
- performance and involvement
-
Communication
- restricted communication
- open communication
-
Labour Mgmt
- piecemeal approach to labour mgmt
- collective bargaining
- Integrated approach to mgmt of HR
- Individualised performance contracts
-
Means
- emphasis on rules, regulations,
- procedures, practices
- Emphasis on human enery and competencies
-
Ends
- employee satisfaction
- achieving goals
-
Outcome
- a) satisfied personnel
- b) Increased production
- a) committed HRs
- b) Increased productivity
- c) Readiness to change
- d) Increased Profits
- e) Quality of work life
-
C. HR Outcomes
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Quality of Work life(QWL)
-
A
- Autonomy
- Recognition
- belonging
- intrinsic rewards-job-oriented
- extrinsic rewards-money oriented
-
B. Factors
- equity in compensation
- safe and healthy work environment
- development of human capacities
- social relevance
- social responsibility
- total life space
-
Productivity
- a) Technology
- b) Innovation
- c) Learning
- d) Motivation
- e) Performance-reward linkage
-
Readiness to change
-
A) Main reasons for resistance to change are:
- a) fear of unknown
- b) security
- c) misunderstanding
- d) Habit
- e) poor communication
- f) lack okf involvement
- g) vested interests
- h) social factors
-
B) HRM brings readiness for change by:
- i) education and communication to employees about change
- ii) participation and involvement of employees in planning and implementation of change
- iii) negotiation and agreement with employees about change
- iv) Facilitation and support to employees through training and education
- v) giving roles to key employees in designing and implementing change
- vi) overcoming resistance to change
-
D. Challenges of HRM
- Globalization
- Complexity
- Technological change
- Less Attached Employees
- New HRM Concerns
- Management of Change
- Learning Organizations
-
Components
-
Acquisition
-
Human Resource Planning
-
A.
- Concept
- Characteristics
- Goal directed
- checks shortage and surplus of HR
- Future oriented
- quantitative and qualitative
- systems-oriented
- forecasts needs
- identifies supplies
- outcome- right man at the right place at teh right time
- time horizon
- part of corporate plan
- part of acquisition function
- Importance of HRP:
- Risk and uncertainty reduction
- Environmental adaptatin
- Improved labour relatins
- Acquisition, development, utilization and control of HRs
- Change management
- Improved efficiency and effectiveness
-
B.
- Concept of Human Resource Strategy
- Characteristics
- a) Long-term horizon
- b) Objectives-oriented
- c) Value Addition
- d) Environment Adaptation
- Relationship between HR Planning and strategic planning
- Strategic planning
- a road-map that provides direction and scope
- a systematic process to analyze the opportunities and threats in teh environment and assess organizations internal strngths and weaknesses, and identify opportunities of competitive advantage
- encourages managers to look for new opportunities in the long run
- Strategic plan is a corporate level plan which :
- a) defines org's mission, objectives and strategies-provides long-term road-map.
- b) analyzes strengths, weaknesses, opportunities and threats of the orgs (SWOT analysis)
- c) analyzes org's resource capabilities
- d) matches resources with opportunities of competitive advantages.
- HR Plan
- a process of predetermining HR needs and choosing actions to satisfy those needs to help achieve org objectives
- strong relationship with Strategic planning - an integral part of the corporate plan.
- Relationship
- a) Follower relationship
- HR plan is based on overall objectives and strategies of the org
- HR plan is tailored to fit the needs of corporate strategic plan.
- b) Partner relatinship
- ** HR Plan is a partner in the formulation of the corporate strategic plan
- ** has a strategic relationship in the development of the corporate strategic plan
- ** HRM gets everybody in the org involved in implementing the strategic plan
- Partner relationship aims to:
- i) link HR activities with the strategic plan of the org
- ii) ensure that HRM issues are properly considered while formulating the strategic plan
- iii) ensure effective utilization of HR
- iv) achieve a match between org objectives and HRM objectives
- v) identify human resource competencies neede to achieve org objectives
- vi) develop action plan for HRM
-
C. Approaches to HR Planning
- 1) Top down approach(Quantitative approach)
- 2) Bottom up approach (Qualitative approach)
- 3) Mixed Approach
-
D.
- HR Planning Process
- HRP Process.jpg
- 1. Assessing Current Human Resources
- 2. Forecasting HR demand
- 3. Forecasting HR Supply
- 4. Matching demand and supply forecasts
- 5. Preparation of Action plans
- Figure
- HR Informatin System
- Concept
- A database device for systematically tracking HR info
- designed to collect, analyze, store, retrieve and disseminate info about jobs & employees
- - Jobs currently being done : job requirements
- People doing those jobs : people requirements
- a computer-based system developed from employee and pay-roll records
- Contents of HRIS
- a) Personal data
- - name
- - address
- - date of birth
- - marital status
- - children
- - next of kin
- b) Skills data
- • Educational qualifications
- • Training recieved
- •language spoken
- • capabilities
- • special skills
- c) Position data
- • current position
- • duties and responsibilities
- • occupational history
- • various jobs held in other orgs
- • work location
- d) Compensation data
- • current salary
- • salary history
- • bonus
- • overtime payments
- • deductions from salary
- • tax info
- • award received
- e) Performance data
- • current and past performance appraisal data
- Uses of HRIS
- a) HR Inventory development
- b) Human resource forecast
- c) HR development
- d) Job analysis
- HR Inventory
- Concept
- • skills inventory of HR currently employed in teh org
- • based on HRIS
- • source of info for developing HR inventory are the forms completed by employees
- Info included in the inventory:
- a) name of the employee/age/sex/marital status
- b) education qualification of the employee
- c) Training undertaken by the employee
- d) current position held by the employee
- e) performance ratings of the employee
- f) prior employment experience of the employee
- g) salary level of the employee
- h) language spoken by the employee
- i) capabilities of the employee in terms of future potential
- j) specialized skills of the employee
- k) job and location preferences
- Analysis of HRIS data provides the following info to facilitate the development of HR Inventory:
- a) no. of current employees by departments, service, skills, level, age, etc
- b) no. of current employees joining and leaving, including reasons for leaving
- c) staff turnover rates, including its trend
- d) sickness and absenteeism rates
- e) salary bill, including overtime payments
- Benefits of HR Inventory
- a) enables managers to assess what skills are currently available in the org
- b) useful for planning the selection, training, promotion and transfer of employees
- c) serves as a decision making tool - helps to make person-job fit
- d) serves as a guide for considering opportunities for diversification and expansion of operation
- e) provides crucial info for identifying HR related threats to the org
- f) supports decision making, coordination and control relating to human resources
- Succession Planning
- A. Concept
- Succession planning is the process of forecasting future demand of managerial human resources. It involves
- a) anticipating managerial staffing needs in future for key positions
- b) identifying managers with potential for higher responsibilities
- c) Making plans for the development of identified managers to meet those needs. potential successors are identified and developed.
- It is done for middle and top level managers
- Concerned positions are likely to be vacant in the future due to:
- º Retirement
- º Resignation
- º Promotion
- º Transfer
- º Death
- Takes a long term view of the managerial HR needs of the Org
- Builds and 'employee bank'
- A separate management inventory is generated from HR Inventory for Succession Planning purposes. It includes additional info about the following :
- º Current Performance
- º Long term growth potential
- º Promotability
- º Developmental needs (Skills deficiencies)
- The Management Succession plan is prepared by matching individual manager's inventory with the list of positions likely to be vacant.
- Subtopic 1
- If managerial shortages are spotted for vacancies in the mgmt succession plan, candidates are developed through :
- º Training and management development
- º special assignments
- º job rotation
- º understudy
- º other means
- B. Benefits
- a) Continuity
- b) Career planning
- c) Development
- d) Talent Management
- HR Planning in Nepalese Orgs
-
Job Design and Analysis
-
Job Design
- Concept
- Task
- job
- position
- occupation
- Benefits of Job design
- Organizational design
- Need balancing
- Human resource acquisition
- motivation
- Person-job fit
- harmonious labour relations
- better quality of work life
- Methods of job design
- Scientific Management Method
- Herzberg's Method
- Job Characteristics Method
- Open Socio-Technical Method
- Work Team Method
-
Job Analysis
- Concept
- Components
- Job description
- i) Title of the job, level of the job : this identifies the job.
- ii) Location of the job : Department, physical location.
- iii) Relationships : responsible to and responsible for.
- iv) Job summary : describes general nature of the job.
- v) Duties and responsibilities : What the employee does.
- vi) Authority : right to make decisions and give orders to subordinates.
- vii) Accountabilities : Answerability for standards of performance.
- viii) Organizational interactions : Both inside and outside the organizations.
- Job specification
- i) Education and Training : years of schooling, type of training
- ii) Experience : previous job experience in terms of years and nature of organization.
- iii) Physical Health : Good health, emotional stability.
- iv) Skills : Communication, computer, driving, report writing, etc.
- v) Abilities :
- Physical: strength and dexterity, sitting/standing/walking
- Mental: Judgement and initiative, getting along with others, decision making, etc.
- vi) Maturity: capacity to assume increased responsibilities.
- Job Performance standards
- job evaluation
- Purposes:
- • It gives information for developing a compensation package.
- • It is important for compensation management.
- • It serves as the basis for fixing a fair and equitable salary and wage structure.
- Purposes of job analysis
- 1. develop job description, job specifications and job performance standards
- 2. Conduct job evaluation
- 3. prepare human resource plan
- 4. Identify training and development needs
- 5. Develop performance appraisal system
- 6. Job design and redesign
- Collecting Job Analysis Information (Process)
- a) understand purpose of job analysis
- b) Select positions to be analyzed
- c) Identify information needed
- i. work activities
- ii. worker-oriented activities
- iii. machines and materials used
- iv. job performance standards
- v. job context
- vi. personal attributes
- d) Identify sources of information
- i) employees
- ii) supervisors
- iii) independent experts
- iv) job review committee
- v) nonhuman sources
- e) choose methods for collecting information
- i. observation method
- ii. interview method
- iii. questionnaire method
- iv. diary method
- v. technical conference method
- f) Collect needed information and check for accuracy
- Job Analysis techniques
- Job focused techniques
- a) Functional Job Analysis Technique
- i) worker functions
- ii) Worker fields
- iii) Worker products
- iv) Worker traits
- b) Methods Analysis
- • Balancing movements of two hands
- • Opposite and symmetrical directions of hands
- • Reduction of muscular efforts
- • Doing productive work without idle time
- • Location and position of tools and materials for grasping
- • Illumination, height, space arrangements at work
- c) The Hay Plan
- • Objectives of the job
- • Dimensions of the job
- • Nature and scope of managerial position
- • Accountability
- • Supporting staff needs
- • Technical, managerial and human relationships required
- • Nature of problem solving required
- • Nature of control and supervisory requirements
- Person/behaviour focused techniques
- a) Position Analysis Questionnaire (PAQ)
- i) Information unit : where and how the worker gets information to do the job.
- ii) Mental processes : reasoning, planning and decision making involved in a job
- iii) Work output : physical activities as well as tools or devices used
- iv) Relationships : interpersonal relationships required by the job
- v) Other job characteristics: work schedules, work responsibilities, etc
- b) Critical Incident Technique
-
Recruitment, Selection and Socialization
-
Recruitment
- Process:
- Locating sources
- Internal Sources
- Sources
- ∙ Promotion from within
- ∙ Transfer
- ∙ Rehires
- ∙ job rotation
- Advantages of Internal Recruitment
- 1. Better selection
- 2. Morale building
- 3. Adaptability
- 4. Human resource development
- 5. Cost-effective
- 6. Commitment
- Disadvantages
- 1. Limited choice
- 2. In-breeding
- 3. Favouritism
- 4. Limited opportunities
- 5. Seniority-based
- External
- Sources
- 1. Employment exchange
- 2. Private employment agencies
- 3. Educational institutions
- 4. Professional associations
- 5. Trade unions
- 6. Unsolicited applicatins
- ∙ Walk-ins
- ∙ write ins
- ∙ electronic
- Advantages of external recruiting
- 1. Qualitative human resources
- 2. Organizational rejuvenation
- 3. Environmental adaptation
- 4. Balanced human resource mix
- 5. Fairness in recruitment
- Disadvantages of external recruiting
- 1. High cost
- 2. Poor employee morale
- 3. Adaptability problems
- 4. Wrong selection
- Attracting qualified candidates to apply
- Methods of recruitment
- Internal methods:
- 1. Job posting
- a) Bulletin boards
- b) In-house newsletters/newspapers
- c) circulars
- d) electronic mail
- 2. Employee referral
- 3. Human resource inventory search
- a) Personal : Name, age, sex, marital status
- b) Educational qualifications/professional qualifications
- c) Training undertaken/special skills
- d) Employment experience/ current position held/seniority
- e) Performance ratings
- f) Salary level/benefit plans
- g) Language spoken
- h) Capabilities
- i) Job and location preferences
- External methods
- 1. Advertising
- A. Media:
- i) print
- ii) visual
- iii) audio-visual
- B. Adv types:
- i) Want ads
- ii) blind box ads
- 2. Educational institution placement
- 3. Employee referrals
- 4. Internal search
- 5. Contact
-
Selection
- Selection process
- selection process.jpg
- 1) Application form evaluation
- 2) Preliminary interview
- 3) Selection tests
- 4) Selection interview
- 5) Reference checks
- 6) Physical examination
- 7) Hiring decision
- Selection tests
- Types
- Ability tests
- Aptitude tests
- GMAT
- Special aptitude tests
- i) Mechanical aptitude tests
- ii) psychomotor aptitude tests
- iii) Artistic aptitude test
- achievement test
- i) job knowledge test
- ii) work sample test
- intelligence test
- IQ.jpg
- personality tests
- interest test
- attitudes test
- projective test
- situation tests
- honesty tests
- Reliability and validity of selection process
- 1) Reliability (consistency
- 2) Validity (Accuracy)
- a) content validity
- b) predictive validity
- c) Concurrent validity
- d) Construct validity
- Interviews
- Interview process
- a) Preparation
- b) conduct
- c) termination
- d) evaluation (review)
- Methods of interviews
- a) one-on-one interview
- b) panel interview
- c) group interview
- Types of interviews
- 1. Unstructured interview (non-directive approach)
- 2. Semi-structured interview (mixed approach)
- 3. Structured interview (directive approach)
- a) Behavioral interview
- b) Situational interview
- Limitations of interview
- 1. Snap judgement
- 2. Contrast effect
- 3. Halo effect
- 4. Non-verbal signals
- 5. Personal biases
- 6. Pressures
- 7. Negative factors
- 8. Lack of knowledge
-
Socialization
- Process of socialization
- 1. Prearrival stage
- • Education and training
- • Prior job experiences
- • Recruitment process
- • Selection process
- 2. Encounter stage
- 3. Metamorphosis stage
- Subtopic 4
-
Differences between recruitment and selection
- 1) Recruitment takes place before selection and selectin takes place after the recruitment
- 2) Recruitment prepares a large pool of probable candidates and selection chooses the right candidate from that pool.
- 3) Recruitment locates potential candidates and selection matches candidates with the job.
- 4) Recruitment brings employer and employees together and selection brings them face to face through selection tests and interviews.
-
Development
-
Training and Development
-
Learning
- process of learning.jpg
- Process of learning
- a) Stimulus – brings the desire to react/desire to learn
- b) Response – org respond to stimulus
- c) Motivation – motivate the employee
- d) Reward – better results - reward
-
Human resource development
- Essential features of HRD
- a) Human focus
- b) Learning experience
- c) Time-bound
- d) Competence
- e) Performance
- f) Mechanisms
- g) Culture
- Importance of HRD (Needs of HR Training and development
- 1. Improve competencies
- 2. Enhance effectiveness
- 3. Foster team-work
- 4. Facilitate career development
- 5. Increase job satisfaction
- 6. Improve decision making
- 7. Manage change and conflicts
- 8. Succession planning
- 9. Environmental adaptation
- Training
- Objectives or Benefits of training
- 1) Competency development (knowledge, skills, ability, behavior)
- 2) Productivity improvement (output/performance)
- 3) Change management
- 4) Better communication and healthy attitude
- 5) Improved labour relations
- 6) Minimizes supervisory burden
- 7) Career development
- Determining training needs
- Inportance
- 1) Develop training objective
- 2) Identify training responding problems
- 3) Develop training programs
- 4) evaluate training
- Levels of training need determination
- 1. Organizational level
- 2. Task level
- 3. Individual level
- Methods of determining training needs
- 1) Management Audit Method
- a) Environmental Assessment
- b) Objectives, strategies and structure
- 2) Task Analysis method
- task analysis process.jpg
- 3) Performance analysis method
- a) Organizational Performance analysis
- i) Goal achievement
- ii) Production performance
- iii) Quality control
- iv) Sales performance
- v) Costs
- vi) Absenteeism and labour turnover rates and trends
- vii) Accident rates and their frequency
- viii) Grievance reports and their reasons
- b) Employee performance analysis
- i) Employee performance appraisal reviews
- ii) Career planning discussions
- iii) Exit interviews
- iv) Performance tests
- 4) Supervisory recommendations method
- a) Realities of work situation
- b) Performance standard for the job
- c) Present knowledge and skills of the employees
- d) Desired knowledge and skills to perform the job
- 5) Training needs survey method
- a) Individual survey
- i) questinnaire
- ii) Interview
- b) Group Survey
- i) focus group discussion
- ii) brainstorming
- c) Competency survey
- i) Delphi technique
- ii) Conference
- Subtopic 3
- Training methods
- 1. On-the-job training methods
- a) Apprenticeship training method
- b) Internship training method
- c) Job Instruction training method
- i) Training preparation
- ii) Presentation
- iii) Practice
- iv) Follow-up
- 2. Off-the-job training methods
- a) Lecture/conference method
- b) simulation exercises
- i) Computer modelling
- ii) Vestibule training
- iii) Virtual reality
- c) Programmed instruction method
- d) Experiential exercises method
- - experiential exercises
- - role plays
- Evaluating training effectiveness
- Process of training effectiveness
- 1. setting standards
- 2. measuring actual outcomes
- 3. finding deviations
- 4. corrective actions
- Criteria for evaluating training effectiveness
- 1. Reaction criteria
- 2. Learning criteria
- 3. Behavior criteria
- 4. Results criteria
- Methods for evaluating training effectiveness
- 1. Observation method
- 2. Test-retest method
- 3. Pre-post performance method
- 4. Experimental-control group method
- 5. Trainee surveys
- 6. Cost effective analysis
- Management Development
- Objectives of MD
- 1. Increase managerial capabilities
- 2. Enhance managerial potential
- 3. Foster team-work
- 4. Facilitate environmental adaptation
- 5. Improve managerial decision-making
- 6. Facilitate management succession plan
- 7. Improve managerial job satisfaction
- Methods/techniques of MD
- 1. On-the-job MD methods
- a) Coaching
- b) Understudy
- c) Job rotation
- i) Planned rotation
- ii) Situational rotation
- iii) Line and staff rotation
- d) Planned work assignment
- e) internship
- 2. Off-the-job MD methods
- a) Lecture/seminar/education
- b) Simulation exercises
- i) case study
- ii) incident method
- iii) role play
- iv) management games
- c) Behavior modeling
- i) model study
- ii) role play
- iii) reinforcement
- iv) skill transfer
- d) Sensitivity training
- e) Transactional analysis
- · The parent : Ego state of authority, superiority, controlling
- · The adult : Ego state of objectivity and rationality
- · The child : ego state of impulses and emotion
-
Utilization
-
Motivation
-
Concept
- 1. Psychological concept
- 2. Complex and unpredictable
- 3. Concerned with individual
- 4. Continuous process
- 5. Pervasive
- 6. Goal-oriented
-
Types
- 1) Extrinsic motivation (Financial or physical motivation)
- 2) Intrinsic Motivation (Mental or psychological motivation)
- a) Job enrichment
- b) Participation
- c) Management-by-objectives
-
Importance of Motivation
- 1. Understand employee behavior
- 2. Productivity improvement
- 3. Quality improvement
- 4. Employee retention
- 5. Creativity promotion
- 6. Employee factors
-
Process of motivation
- process of motivation.jpg
- 1. Unsatisfied needs and motives
- 2. Tension
- 3. Action
- 4. Accomplishment of goal
- 5. Feedback
-
Motivation Theories
- Need-based
- 1. Maslow's need heirarchy
- 1. Physiological needs
- 2. Safety needs
- 3. Social needs
- 4. Esteem needs (Ego needs)
- 5. Self-actualization needs
- Lower-level needs : most pressing needs
- Higher-level needs: least pressing needs
- 2. Herzberg's Theory
- Motivation factors
- 1. Achievement
- 2. Recognition
- 3. Advancement
- 4. The work itself
- 5. Personal growth
- 6. responsibility
- Hygiene Factors
- 1. Company policy and administration
- 2. Supervision
- 3. Interpersonal relations
- 4. Salary
- 5. Job security
- 6. Personal life
- 7. Work conditions
- 8. status
- 3. McClelland's Theory: Achievement Theory
- 1. Need for Achievement(n-Ach)
- • Desire to assume personal responsibility to perform difficult tasks and solve difficult problems
- • Desire to set difficult goals and take calculated risks
- • Desire to perform efficiently and get performance feedback
- 2. Need for Power (n-Pow)
- • Desire to influence and direct others
- • Desire to exercise control over others
- • Desire for maintaining leader-follower relations
- 3. Need for Affiliation (n-Aff)
- • Desire to be accepted and liked by others
- • Desire to conform to wishes of others
- • Desire to value the feelings of others
- 4. ERG Theory
- a) Need for Existence
- b) Need for Relatedness
- c) Need for Growth
- Process-based
- 1. Equity Theory (J. Stacy Adams)
- The referents:
- • Self-inside
- • Self-outside
- • Other-inside
- • Other-outside
- Equity theory of motivation
- Topic
- Examples of job inputs and outcomes
- Inequity can be reduced by
- 1. Changing inputs
- 2. Changing outcomes
- 3. Changing perceptions of inputs and outcomes
- 4. Changing the inputs or outcomes of comparision person
- 5. Changing the comparision person (referent)
- 6. Leaving the field
- 2. Expectancy Theory (Vroom's Theory)
- Three relationships
- a) Effort – performance relationship (E→P) : Expectancy
- b) Performance-Reward relationship (P→O) : Instrumentality
- c) Reward-Personal Goal Relationship (V) : Valence
- Link between effort, performance and valence
- Expectancy Theory of motivation: High level of work motivation requires-
- a) Expectancy that effort will lead to effective performance
- b) Instrumentality theat effective performance will lead to positive outcomes.
- c) Positive value anticipation of the outcomes. The outcomes should be attractive to the individuals.
- d) The outcomes satisfy an individual's personal goals.
- 3. Goal-setting Theory
- Motivation and performance
-
Frustration
- Nature of Frustratin
- a) Drive
- b) Blocking
- c) Barriers
- - Overt: outward or physical barriers
- - Covert: Inward or mental barriers
- d) Defense mechanisms
- i) Aggression
- ii) Withdrawal
- iii) Fixation
- iv) compromise
- Causes of frustration
- a) Intra-individual complexities
- b) Divergent personality (personality clash)
- c) Changing job characteristics that cause stress
- d) Increasing competition for scarce resources
- e) Barrier that block goal attainment : can be overt (outward or physical) or covert (mental or inward)
-
Job Satisfaction
- Model of job satisfaction
- Dimensions
- 1. Emotional response
- 2. Expectancy
- 3. Attitudes
- Factors related to job satisfaction
- 1. Pay
- 2. Job
- 3. Promotion
- 4. Supervision
- • Employee-centred
- • Participative
- • Production-centred
- 5. Work group
- 6. Working conditions
-
Performance Appraisal
-
Process
- 1. Set performance standards
- 2. Communicate performance standards to employees
- 3. Measure actual performance
- a. Personal observation
- b. Internal reports
- c. Special reports
- 4. Find deviations
- 5. Discuss appraisal with employees
- 6. Initiate corrective actions
- a) Correct deviations
- b) Change standards
- c. Training assignment
- The performance appraisal process
-
Uses
- 1. Performance improvement
- 2. Reward management
- 3. Training and development decisions
- 4. Promotion, transfer, separation decisions
- 5. Validation of selection tests
- 6. Supervisory understanding
- 7. Career and succession planning
- 8. Policy formulation
-
Methods
- 1. Job standard-oriented methods
- a) Essay Method
- • Strengths and weaknesses
- • Job performance during the appraisal period
- • Technical effectiveness
- • Leadership ability
- • Promotional potential
- • Training and developmental needs
- • Suggestions for improvement
- b) Checklist method
- i) Simple checklist
- Simple checklist for appraising sales clerks
- ii) Weighted checklist
- c) Forced distribution method(Forced choice method)
- d) Critical incident method
- e) Graphic ratings scales method
- i) Quality and quantity of wok
- ii) Job knowledge
- iii) Attendance, appearance
- iv) Loyalty and dependability
- v) Honesty, integrity
- vi) Attitude, initiative, cooperation, etc
- f) Behaviorally anchored rating scales(BARS)
- i. Identify performance dimension
- ii. Collect critical incidents
- iii. Reclassify incidents
- iv. Assign scale values to incidents
- 2. Comparison oriented
- a. Alternate ranking method
- b. Paired comparirion method
- 3. Objective-oriented :
- i. Management-by-objectives (MBO)
- a) Collaborative goal setting
- b) Action planning
- c) Performance review
- d) Performance evaluation
- ii. 360° Evaluation method
- 360°
-
Reward Management
-
Consists of:
- a) Pay
- b) Benefits
- c) Services
- d) Job-related rewards
-
Goals of RM
- 1) To acquire competent employees
- 2) Retain effective workforce
- 3) Motivate employees
- 4) Cost-effectiveness
- 5) Ensure equity
- a) internal equity
- b) external equity
- c) Individual equity
- 6) Legal compliance
-
Types
- a. Intrinsic
- i. Interesting work
- ii. Respomsibility
- iii. Job freedom
- iv. Growth opportunities
- v. Participation
- vi. Diversity of activities
- b. Extrinsic
- 1. Financial
- i. Performance-based
- • Piecework
- • Commission
- • Incentive plans
- • Bonuses
- • Merit pay plans
- ii. Membership-based
- • Pay
- • Benefits and services
- 2. Non-financial
- A. status-based
- • Preferred office furnishings and furniture
- • Impressive job-title with own business card
- • Own secretary
- • Chauffer-driven car
- B. privilege-based
- • Preferred lunch-hours
- • Reserved parking spaces
- • Working with less supervision
- • Desired work assignments
-
Qualities of effective reward system
- 1. Importance
- 2. Equitable
- Types
- a) internal equity
- b) external equity
- c) Individual equity
- Ways to establish equity
- a. Job evaluation
- b. Wage surveys
- c. Seniority and merit-based
- d. Legal compliance
- e. Collective bargaining
- 3. Visibility : ways to increase visibility
- a) Well-publicized bonuses
- b) Lump sum salary increases
- c) Transparency
- 4. Flexibility
- 5. Competitive
- 6. Cost-effective
-
Compensation Management
-
Determinants of compensation
- A. Internal factors
- 1. Objectives of compensation
- a) Establish fair and equitable pay system
- b) Attract and retain competent human resources
- c) Improve motivation and morale of employees
- d) Control costs by designing the lowest cost pay structure
- e) Improve labour relations through collective bargaining on compensations issues with unions
- f) Improve image of the organization as a "fair play" employer
- g) Comply with legal framework related to compensation
- 2. Compensation policies
- 3. Job evaluation
- 4. Employee productivity
- B. External factors
- 1. Legal consideration
- 2. Labour market rates
- 3. Equity considerations
- 4. Cost of living
- 5. Labour union pressures
-
Methods of establishing employee compensation
- 1. Job analysis
- a) Job description
- b) Job specification
- c) Job performance standards
- 2. Job evaluation
- A. Compensable factors considered
- i. Duties and responsibilities of the job
- ii. Skills required for the job
- iii. Efforts needed for the job
- iv. Working conditions of the job
- B. Job evaluation methods
- i. Job ranking method
- ii. Job grading method
- iii. Factor comparison method
- • Compensable factors eg
- - Responsibilities
- - Skills
- - Mental and physical efforts
- - Working condition
- • Steps
- a) Determine the compensable factors
- b) Determine key jobs
- c) Apportion the key job's current pay rate
- d) Prepare factor comparision chart
- iv. Point method
- • Steps:
- a) Determine the compensable factors
- b) Determine levels of factors
- c) Allocate points to subfactors and levels
- d) Develop point system matrix
- 3. Compensation surveys
- Sources of data:
- a) Published surveys
- b) Consultants and agencies
- c) Advertisements and applicants
- d) Informal communication
- 4. Pricing jobs
-
Current trends in compensation
- 1. Competency-based pay
- 2. Broadbanding
- 3. Comparable worth
- 4. Variable pay plans
- 5. Cafeteria approach
-
Incentive plans
- 1. Individual incentive plans
- a) Piecework(Piece-rate)
- i. Straight piecework
- ii. Different piecework
- b) Commission plan
- i. Straight commission
- ii. Salary plus commission
- c) Bonus plan
- i. Spot bonus
- ii. End-of-year bonus
- 2. Group incentive plans
- a) Piecework(Piece-rate)
- b) Commission plan
- c) Bonus plan
- d) Production plan
- 3. Organizational incentive plans
- a) Productivity gainsharing plan (PG)
- b) Profit sharing
- - current distribution
- - diferred distribution
- c) Ownership sharing
- i. Installment purchase
- ii. Stock option
- iii. Gift
- d) Suggestion plan
-
Union influence in compensation programmes
- 1. Collective bargaining
- Pay
- Time-off with pay
- Income security for lay-off
- Cost of living adjustment
- 2. Compensation structure
- 3. Industrial actions
-
Maintenance
-
Employee Discipline
-
Types of disciplinary problems
- 1. Attendance-related
- a) Late for work
- b) Absenteeism
- c) Leaving work without permission
- d) Abuse of leave
- e) Habitual tardiness(बहानाबाजी)
- 2. Job-behaviour-related
- a) In-subordination
- b) Failure to obey safety rules
- c) Defective work
- d) Not reporting accidents
- e) Drunk on the job
- f) Gambling on the job
- g) Fighting on the job
- h) Drug use on the job
- i) Destruction of the property
- j) Carrying firearms (ज्वलनशील वस्तु)
- 3. Dishonesty-related
- a) Theft
- b) Information falsification
- c) Punching time-card of others
- d) Hiding defective work
- e) Subversive activities
- 4. Outside activities-related
- a) Unauthorized strike
- b) Working for competitors
- c) Outside criminal activities
- d) Wage garnishment
- e) Making speeches
-
General guidelines in administering discipline
- 1. Disciplinary actions should be corrective
- 2. Progressive corrections should be made step-by-step
- a) Oral warning
- b) Written warning
- c) Suspension
- d) Pay cut
- e) Demotion
- f) dismissal
- 3. It should follow the "hot stove" rule – in time
- a) The burn is immediate
- b) The person touching the stove has warning
- c) The effect is consistent
- d) The effect is impersonal
- 4. Allow employee to give explanation
-
Disciplinary actions
- a) Oral warning
- b) Written warning
- c) Suspension
- d) Pay cut
- e) Demotion
- f) dismissal
-
Labour Relations and Grievances
-
Purposes of labour relations
- 1) Harmonious relations
- 2) Institutionalized relationships
- 3) Industrial peace
- 4) Open communication
- 5) Change management
- 6) Productivity improvement
- 7) Environmental adaptation
-
Actors of industrial relations system
- Labour relations triangle
- 1. Workers : Unions
- 2. Employers: employers'association
- 3. Society: Government, pressure groups
-
Grievances
- Types
- a) Factual
- b) Imaginary
- c) disguised
- Causes
- 1. interpretation differences
- 2. management practices
- 3. labour union practices
- 4. personality traits
- 5. organizational culture
- 6. working conditions
- Handling employee grievances
- Approaches
- 1) Open-door policy
- 2) Legal compliance
- 3) Following Grievance procedure
- 1) Grievant to Supervisor
- 2) Grievant to Department head
- 3) Grievant to Grievance committee
- 4) Grievant to Chief executive
- 5) Grievant to voluntary arbitration
- Grievance handling procedure