HRM Notes
HRM Notes
Development and Strategic Human Resource Management, Changing Role of HR. Human Resource Management: Nature Human Resource Management is a process of bringing people and organizations together so that the goals of each are met. The various features of HRM include: It is pervasive in nature as it is present in all enterprises. Its focus is on results rather than on rules. It tries to help employees develop their potential fully. It encourages employees to give their best to the organization. It is all about people at work, both as individuals and groups. It tries to put people on assigned jobs in order to produce good results. It helps an organization meet its goals in the future by providing for competent and well-motivated employees. It tries to build and maintain cordial relations between people working at various levels in the organization. It is a multidisciplinary activity, utilizing knowledge and inputs drawn from psychology, economics, etc. The scope of HRM refers to all the activities that come under the banner of HRM. The activities are as follows Human resources planning: - Human resource planning is 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 HRM is job analysis. Job analysis gives a detailed explanation about each and every job in the company. Based on this job analysis the company prepares advertisements. Recruitment and selection: - Based on information collected from job analysis the company prepares advertisements and publishes them in the news papers. 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 areas of HRM. Orientation and induction: - Once the employees have been selected an induction or orientation program is conducted. The employees are informed about the background of the company. They are told 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 i.e. the HR 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 HR 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 HR 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. Industrial relations: - Another important area of HRM 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.
Human Resource Management: Functions In order to achieve the above objectives, Human Resource Management undertakes the following activities: 1. Human resource or manpower planning. 2. Recruitment, selection and placement of personnel. 3. Training and development of employees. 4. Appraisal of performance of employees. 5. Taking corrective steps such as transfer from one job to another. 6. Remuneration of employees. 7. Social security and welfare of employees. 8. Setting general and specific management policy for organizational relationship. 9. Collective bargaining, contract negotiation and grievance handling. 10. Staffing the organization. 11. Aiding in the self-development of employees at all levels. 12. Developing and maintaining motivation for workers by providing incentives. 13. Reviewing and auditing manpower management in the organization 14. Potential Appraisal. Feedback Counseling. 15. Role Analysis for job occupants. 16. Job Rotation. 17. Quality Circle, Organization development and Quality of Working Life. Models of HRM The Fombrun, Tichy and Devanna model: Being the first model this emphasis just four functions and their interrelatedness. The four functions are selection, appraisal, development and rewards. These four constituent components of HRM and are expected to contribute to organizational effectiveness. The fombrun model is incomplete as it focuses on only four functions of HRM and ignores all environmental and contingency factors that impact HR functions. Nevertheless, the model deserves appreciation for being the first and has set stage for other theories of emerged. It is also a simple model that serves as a framework for explaining the nature and significance of the key HR activities. The Harvard model: It claims to be comprehensive in as much as it seeks to comprise six critical components of HRM. The dimensions included in the model are stake holders interests, situational factors, HRM policy choices, HR outcomes, long term consequences and a feedback loop through which the outputs flow into the organization and the take holders. The Situational factors influence managements choice of HR strategy. The contingent factors included in the model include workforce characteristics, management philosophy, labour market, task, technology and laws and social values. HRM policy choices emphasize the managements decisions and actions in terms of HRM can be fully appreciated only if it is recognized that they result from an interaction between constraints and choices. Organizational commitment, employee competence, congruence and cost effectiveness constitute HRM outcomes. The assumption here is that employees have talents which are rarely exploited for organizational growth and that they are willing to grow with the organizations contributes to societal well-being. The Long term consequences include societal well-being, organizational effectiveness, and individual welfare. This is obvious linkage among the three.
The Feedback loop is the sixth component of the Harward model. As the stated above, situational factors influence HRM policy and choices, and are influenced by long term consequences. Similarly, stake holders interests influence HRM policy choices, and inturn, are impacted by long term outcomes. The Guest Nodel: Developed by David guest 1997 and claims to be much superior to other models. This model claims the HR manager has specific strategies to begin with which the demand certain practices and when executed will result in outcomes. The outcomes include behavioral, Performance related and financial rewards. It has 6 components: HR strategies, HR practices, HR outcomes, Behavioral outcomes, performance results and financial consequences. Looking inversely financial results depend on employee performance, which in turn is the result of action oriented employee behaviors. Behaviorally outcomes are the result of employee commitment, quality and flexibility, which in turn are impacted by HR practices. The Warwick Model: was developed by 2 researchers, Hendry and Pettigrew of university of Warwick. Like other models, the Warwick proposition centers around five elements. Outer context, Inner context, Business strategy content, HRM context, HRM content. The Warwick model takes cognizance of business strategy and HR practices, the external and internal context in which these activities take place, and the process by which such changes takes place, including interactions between changes in both context and content. It maps the connection between the external and environmental factors and explores how HRM adapts to changes in the context.
Human Resources Development Human Resources Development (HRD) as a theory is a framework for the expansion of human capital within an organization through the development of both the organization and the individual to achieve performance improvement. Human Resource Development is the integrated use of training, organization, and career development efforts to improve individual, group and organizational effectiveness. HRD develops the key competencies that enable individuals in organizations to perform current and future jobs through planned learning activities. Groups within organizations use HRD to initiate and manage change. Also, HRD ensures a match between individual and organizational needs. Process, Practice and Relation to Other Fields Notably, HRD is not only a field of study but also a profession. HRD practitioners and academia focus on HRD as a process. HRD as a process occurs within organizations and encapsulates: 1) Training and Development (TD), that is, the development of human expertise for the purpose of improving performance, and 2) Organization Development (OD), that is, empowering the organization to take advantage of its human resource capital. TD alone can leave an organization unable to tap into the increase in human, knowledge or talent capital. OD alone can result in an oppressed, under-realized workforce. HRD practicitioners find the interstices of win/win solutions that develop the employee and the organization in a mutually beneficial manner. HRD does not occur without the organization, so the practice of HRD within an organization is inhibited or promoted upon the platform of the organization's mission, vision and values. Other typical HRD practices include: Executive and supervisory/management development, new employee orientation, professional skills training, technical/job training, customer service training, sales and marketing training, and health and safety training.HRD positions in businesses, health care, non-profit, and other field include: HRD manager, vice president of organizational effectiveness, training manager or director,
management development specialist, blended learning designer, training needs analyst, chief learning officer, and individual career development advisor. Strategic Human Resource Management Strategic human resource management is designed to help companies best meet the needs of their employees while promoting company goals. Human resource management deals with any aspects of a business that affects employees, such as hiring and firing, pay, benefits, training, and administration. Human resources may also provide work incentives, safety procedure information, and sick or vacation days. Strategic human resource management is the proactive management of people. It requires thinking ahead, and planning ways for a company to better meet the needs of its employees, and for the employees to better meet the needs of the company. This can affect the way things are done at a business site, improving everything from hiring practices and employee training programs to assessment techniques and discipline. Companies who work hard to meet the needs of their employees can cultivate a work atmosphere conducive to productivity. Human resource management is the best way to achieve this. Being able to plan for the needs of employees by thinking ahead can help to improve the rate of skilled employees who chose to remain working for a company. Improving the employee retention rate can reduce the money companies spend on finding and training new employees. The Stage in the Process of Strategic Management: Mission statement- Business definition and future plan for success. Environmental analysis- OT analysis and preparing to meet environmental pressures. Organizational self-assessment- SW analysis and chalking road map for attaining goals. Establishing goals and objectives- Laying concrete figures that will help in benchmarking the performance. These benchmarks will lead to the development of strategy that will decide how the company intends to meets its environmental challenges with given environmental and resource constraints in the time to come. Benefits of a Strategic Approach to HR: * Facilitates development of high-quality workforce through focus on types of people and skills needed. * Facilitates cost-effective utilization of labor, particularly in service industries where labor is generally greatest cost. * Facilitates planning and assessment of environmental uncertainty, and adaptation of organization to external forces. * Successful SHRM efforts begin with identification of strategic needs. * Employee participation is critical to linking strategy and HR practices. * Strategic HR depends on systematic and analytical mindset. * Corporate HR departments can have impact on organization's efforts to launch strategic initiatives. Changing Role of HR Strategic management process involves four important stages: Environmental Scanning: Environment needs to be scanned in order to determine trends and projections of factors that will affect fortunes of the organization. Scanning must focus on task environment. Not those elements outside the task environment are ignored, but they received less attention. Scanning helps identify threats and opportunities prevailing in environment. HR professionals play key roles in scanning the environment. They are in an advantages position to give inputs about the rivals their direction, their strategies, their strengths and their weaknesses. HR executives are the repositories of resumes sent by the employees of rival firms in same industry. Such documents are of great help in
knowing the skills of staff in the competing organizations, reasons for their exit, compensation levels, and other similar details. Strategy Formulation: 3 levels: Corporate level strategy: This is formulated by top management of an organization made up of more than one line of business. In formulating corporate level strategies the company should decide where it wants to be in 10 or 15 years. In at least 8 areas market standing, innovation, productivity, physical and financial resources, profitability, managerial performance and development, worker performance and attitudes and social responsibility. Business level strategy: while the major question at corporate level is in what industries or businesses should we be operating? A business unit is an organizational subsystem that has a market, a set of competitors and a goal distinct from those of the other subsystems in group. A single company that operates within one industry is also considered a business unit. For instance an independent company that builds and sells swimming pools is considered a business unit. In such organization, the corporate level strategy and the business unit strategy are the same. Functional level strategies: Each business unit will consist of several departments, such as manufacturing, sales, finance and HRD. Functional level strategies identify the basic courses of action that each of the departments must pursue in order to help the business unit to attain its goals. In formatting the functional level strategies managers should be aware of that the different functions are interrelated. A change in department will invariably affect the way other departments operate. Hence, the strategy of one functional area cannot be viewed in isolation. Rather, the extent to which all functional strategies are integrated determines the effectiveness of the units business strategy. Strategy Implementation: Strategies formulated need to implemented. Implementations of strategies is often more difficult than their formulation. Implementation of strategies is often more difficult than their formulation. Implementing strategies requires such action as altering sales territories, adding new departments, closing facilities, hiring new employees, changing an organizations pricing strategies , changing advertising strategies, transferring managers among divisions, and buildings a better computer information system. Strategy formulation concepts and tools do not differ vastly for small, large or non-profit organizations. Strategy evaluation: Strategy evaluation helps determine the extent to which the companys strategies are successful in attaining its objectives. Basic activities are, Establishing performance targets, standards and tolerance limits for the objectives, strategies and implementation plans. Measuring the performance in relation to the targets at a given time. If outcomes are outside the limits, inform managers to take action. Analyze deviations from acceptable tolerance limits. Executive modifications where necessary and are feasible.
From HR strategic perspective, evaluation may demand answers to following questions: Does HR provide an annual report on its ROI? Is HR rated by firms customers? Is there an ROI process to evaluate HR initiatives connected to business strategy? Are line managers made responsible for peoples issue?
Obviously, evaluation is a sensitive issue. Too much emphasis on evaluating strategies may be expensive and counterproductive. No manager wants to evaluate too closely. Little or no evaluation can create even worse problems.
Module II: Meeting Human Resource Requirements Job Analysis, Job Description, Strategic Human Resource Planning, Recruitment, Selection Process, Methods Interview, Tests, Placement and Induction. Job analysis One of the main purposes of conducting job analysis is to prepare job description and job specification which in turn helps to hire the right quality of workforce into the organization. The general purpose of job analysis is to document the requirements of a job and the work performed. Job and task analysis is performed as a basis for later improvements, including: definition of a job domain; describing a job; developing performance appraisals, selection systems, promotion criteria, training needs assessment, and compensation plans. In the fields of Human Resources (HR) job analysis is often used to gather information for use in personnel selection, training, classification, and/or compensation. When a job analysis is conducted for the purpose of valuing the job this is called "job evaluation." Job analysis aims to answer questions such as: 1. why does the job exist? 2. What physical and mental activities does the worker undertake? 3. When is the job to be performed? 4. Where is the job to be performed? 5. How does the worker do the job? 6. What qualifications are needed to perform the job? 7. What are the working conditions (such as levels of temperature, noise, offensive fumes, light) 8. What machinery or equipment is used in the job? 9. What constitutes successful performance? There are several ways to conduct a job analysis, including: interviews with incumbents and supervisors, questionnaires (structured, open-ended, or both), observation, critical incident investigations, and gathering background information such as duty statements or classification specifications. In job analysis conducted by HR professionals, it is common to use more than one of these methods. Job Description A job description is a list that a person might use for general tasks, or functions, and responsibilities of a position. It may often include to whom the position reports, specifications such as the qualifications or skills needed by the person in the job, or a salary range. Job descriptions are usually narrative but some may instead comprise a simple list of competencies; for instance, strategic human resource planning methodologies may be used to develop a competency architecture for an organization, from which job descriptions are built as a shortlist of competencies. A job description is usually developed by conducting a job analysis, which includes examining the tasks and sequences of tasks necessary to perform the job. The analysis considers the areas of knowledge and skills needed for the job. A job usually includes several roles. The job description might be broadened to form a person specification or may be known as Terms of Reference. A job description may include relationships with other people in the organization: Supervisory level, managerial requirements, and relationships with other colleagues. A
job description need not be limited to explaining the current situation, or work that is currently expected; it may also set out goals for what might be achieved in future. Limitations: Job descriptions may not be suitable for some senior managers as they should have the freedom to take the initiative and find fruitful new directions; Job descriptions may be too inflexible in a rapidly-changing organization, for instance in an area subject to rapid technological change; Other changes in job content may lead to the job description being out of date; The process that an organization uses to create job descriptions may not be optimal.
Strategic Human Resource Planning Human resources planning is a process that identifies current and future human resources needs for an organization to achieve its goals. Human resources planning should serve as a link between human resources management and the overall strategic plan of an organization. Aging worker populations in most western countries and growing demands for qualified workers in developing economies have underscored the importance of effective Human Resources Planning. Implementation Stages The following implementation stages are suggested for mid to large organizations implementing competencies in support of Strategic Human Resources Planning. Stage 1 Short - Term HR Planning Establish a Competency Architecture and Competency Dictionary that will support Strategic Human Resource Planning. For each group to be profiled, define the roles and career streams to help identify current and future human resources needs. Determine how competencies will be integrated with the existing HR Planning process and systems (e.g., Human Resource Information Management systems; other computer-based tools, for example forecasting models). Stage 2 Build or revamp HR Planning tools, templates and processes to incorporate elements as determined in Stage 1. Train managers and / or facilitate corporate HR Planning process. Continuously monitor and improve processes, tools and systems to support HR Planning
Process Implementation Stages The following implementation stages are suggested for mid to large organizations. Stage 1
Stage 2
Identify the infrastructure and system requirements to support full implementation (e.g., Human Resources Information Management System; other on-line software tools needed to support various CBM applications). Develop the competency profiles. Implement the competency profiles in a staged-way to demonstrate benefits and create buy-in (e.g., as soon as profiles for a group are developed, implement quickly within a low-risk high-benefit planned application for the group). Communicate success stories as competency profiles are implemented. Good for organization.
Develop, revise / update competency profiles to meet changing demands. Monitor and evaluate applications to ensure that they are meeting organizational needs, and adjust programs / plans, as needed, to meet evolving needs. Recruitment
Recruitment refers to the process of attracting, screening, and selecting a qualified person for a job. All companies in any industry can benefit from contingency or retain professional recruiters or outsourcing the process to recruitment agencies. The recruitment industry has four basic types of firms. 1). Employment agencies deal with clerical, trades, temporary and temporary to hire employment opportunities. 2). Recruitment websites and job search engines used to gather as many candidates as possible by advertising a position over a wide geographic area. Although thought to be a cost effective alternative, a human resource department or department manager will spend time outside their normal duties reading and screening resumes. A professional recruiter has the ability to read and screen resumes, talk to potential candidates and deliver a selective group in a timely manner. 3). "headhunters" for executive and professional positions. These firms are either contingency or retained. Although advertising is used to keep a flow of candidates these firms rely on networking as their main source of candidates. 4). Niche agencies specialize in a particular industrial area of staffing. The stages in recruitment include sourcing candidates by networking, advertising or other methods. Utilizing professional interviewing techniques to understand the candidates skills but motivations to make a move, screening potential candidates using testing (skills or personality) is also a popular part of the process. The process is meant to not only evaluate the candidate but also evaluate how the candidate will fit into the organization. The recruiter will meet with the hiring manager to obtain specific position and type information before beginning the process. After the recruiter understands the type of person the company needs, they begin the process of informing their network of the opportunity. Recruiters play an important role by preparing the candidate and company for the interview, providing feedback to both parties and handling salary/benefits negotiations. Agency types The recruitment industry is based on the goal of providing a candidate to a client for a price. On one end of the spectrum there are agencies that are paid only if they deliver a candidate that successfully stays with the client beyond the agreed probationary period. On the other end of the spectrum there are agencies that are paid a retainer to focus on a client's needs and achieve milestones in the search for the right candidate, and then again are paid a percentage of the candidate's salary when a candidate is placed and stays with the organization beyond the probationary period. Today's (March 2011) recruitment industry is fairly competitive, therefore agencies have sought out ways to differentiate themselves and add value by focusing on some area of the recruitment life cycle. Here are five types of typical agencies.
Traditional agency Also known as employment agencies, recruitment agencies have historically had a physical location. A candidate visits a local branch for a short interview and an assessment before being taken onto the agencys books. Recruitment consultants then work to match their pool of candidates to their clients' open positions. Suitable candidates are short-listed and put forward for an interview with potential employers on a contract or direct basis. Compensation to agencies takes several forms, the most popular are: A contingency fee paid by the company when an agency introduced candidate accepts a job with the client company. Typical fees range from 15% to 25% based on the candidates first-year base salary (fees as low as 12.5% can be found online). This type of recruitment usually has a rebate guarantee should the candidate fail to perform or leave within a set period of time (often up to a 3 month period and as much as a 100% rebate). An advance payment that serves as a retainer, also paid by the company, non-refundable paid in full depending on outcome and success (e.g. 40% up front, 30% in 90 days and the remainder once a search is completed). This form of compensation is generally reserved for high level executive search/headhunters Hourly Compensation for temporary workers and projects. A pre-negotiated hourly fee, in which the agency is paid and pays the applicant as a consultant for services as a third party. Many contracts allow a consultant to transition to a full-time status upon completion of a certain number of hours with or without a conversion fee. Headhunters A "headhunter" is an industry term for a third-party recruiter who seeks out candidates often when normal recruitment efforts have failed. Headhunters are generally considered more aggressive than in-house recruiters or may have pre-existing industry experience and contacts. They may use advanced sales techniques. They may also purchase expensive lists of names and job titles but more often will generate their own lists. They may arrange a meeting or a formal interview between their client and the candidate and will usually prepare the candidate for the interview, help negotiate the salary and conduct closure to the search. They are frequently members in good standing of industry trade groups and associations. Headhunters will often attend trade shows and other meetings nationally or even internationally that may be attended by potential candidates and hiring managers. Headhunters are typically small operations that make high margins on candidate placements (sometimes more than 30% of the candidates annual compensation). Due to their higher costs, headhunters are usually employed to fill senior management and executive level roles. Headhunters are also used to recruit very specialized individuals; for example, in some fields, such as emerging scientific research areas, there may only be a handful of top-level professionals who are active in the field. In this case, since there are so few qualified candidates, it makes more sense to directly recruit them one-by-one, rather than advertise internationally for candidates. While in-house recruiters tend to attract candidates for specific jobs, headhunters will attract both candidates and actively seek them out as well. To do so, they may network, cultivate relationships with various companies, maintain large databases, purchase company directories or candidate lists and cold call prospective recruits. Headhunters are increasingly using social media to find and research candidates. This approach is often called social recruiting. Niche recruiters 'Specialized recruiters' exist to seek staff with a very narrow specialty. Because of their focus, these firms can very often produce superior results due to their ability to channel all of their resources into networking for a very specific skill set. This specialization in staffing allows them to offer more jobs for their specific demographic which in turn attracts more specialized candidates from that specific demographic over time building large proprietary databases. These niche firms tend to be more focused on building ongoing relationships with their candidates as is very common the same candidates are placed many times throughout their careers. Niche firms also develop knowledge on specific employment trends within their industry of focus (e.g. The energy industry) and are able to identify demographic shifts such as aging and its impact on the industry.
Social recruiting Social recruiting is the use of social media for recruiting Employee referral An employee referral program is a system where existing employees recommend prospective candidates for the job offered, and if the suggested candidate is hired, the employee who referred receives a cash bonus. In some cases the Organization provides the Employee referral bonus only if the referred employee stays with the organization for stipulated time duration (most cases 3 - 6 months). Referral bonus depends on the grade of the referred employee, higher the grade higher the bonus however the method is not used for senior level hiring. In-house recruitment Under pressure to reduce costs, both large- and medium-sized employers tend to undertake their own in-house recruitment, using their human resources department, front-line hiring managers and recruitment personnel who handle targeted functions and populations. In addition to coordinating with the agencies mentioned above, in-house recruiters may advertise job vacancies on their own websites, coordinate internal employee referrals, work with external associations, trade groups and/or focus on campus graduate recruitment. Some large employers choose to outsource all or some of their recruitment process (recruitment process outsourcing) however a much more common approach is for employers to introduce referral schemes where employees are encouraged to source new staff from within their own network. Executive research firms and passive candidate sourcing firms These firms are the new hybrid firms in the recruitment world able to combine the research aspects (discovering passive candidates) of recruiting and combine them with the ability to make hires for their clients. These firms provide competitive passive candidate intelligence to support companies' recruiting efforts. Normally they will generate varying degrees of candidate information from those people currently engaged in the position a company is looking to fill. These firms usually charge a daily rate or fixed fee. Executive research can help companies uncover names that cannot be found through traditional recruitment methods and will allow human resource managers and internal recruiters more time to deal with face to face interviews. Selection process: Job analysis The proper start to a recruitment effort is to perform a job analysis, to document the actual or intended requirement of the job to be performed. This information is captured in a job description and provides the recruitment effort with the boundaries and objectives of the search. Oftentimes a company will have job descriptions that represent a historical collection of tasks performed in the past. These job descriptions need to be reviewed or updated prior to a recruitment effort to reflect present day requirements. Starting recruitment with an accurate job analysis and job description ensures the recruitment effort starts off on a proper track for success. Sourcing Sourcing involves 1) advertising, a common part of the recruiting process, often encompassing multiple media, such as the Internet, general newspapers, job ad newspapers, professional publications, window advertisements, job centers, and campus graduate recruitment programs; and 2) recruitment research, which is the proactive identification of passive candidates who are happy in their current positions and are not actively looking to move companies. This initial research for so-called passive candidates, also called name generation, results in a contact information of potential candidates who can then be contacted discreetly to be screened and approached on behalf of an executive search firm or corporate client.
Screening and selection Suitability for a job is typically assessed by looking for skills, e.g. communication, typing, and computer skills. Qualifications may be shown through rsums, job applications, interviews, educational or professional experience, the testimony of references, or in-house testing, such as for software knowledge, typing skills, numeracy, and literacy, through psychological tests or employment testing. Other resume screening criteria may include length of service, job titles and length of time at a job. In some countries, employers are legally mandated to provide equal opportunity in hiring. Business management software is used by many recruitment agencies to automate the testing process. Many recruiters and agencies are using an applicant tracking system to perform many of the filtering tasks, along with software tools for psychometric testing. Lateral hiring "Lateral hiring" refers to a form of recruiting; the term is used with two different, almost opposite meanings. In one meaning, the hiring organization targets employees of another, similar organization, possibly luring them with a better salary and the promise of better career opportunities. An example is the recruiting of a partner of a law firm by another law firm. The new lateral hire then has specific applicable expertise and can make a running start in the new job. In some professional branches such lateral hiring was traditionally frowned upon, but the practice has become increasingly more common. An employee's contract may have a non-compete clause preventing such lateral hiring. On boarding "Onboarding" is a term which describes the process of helping new employees become productive members of an organization. A well-planned introduction helps new employees become fully operational quickly and is often integrated with a new company and environment. Onboarding is included in the recruitment process for retention purposes. Many companies have onboarding campaigns in hopes to retain top talent that is new to the company; campaigns may last anywhere from 1 week to 6 months. Internet recruitment and websites Such sites have two main features: job boards and a rsum/curriculum vitae (CV) database. Job boards allow member companies to post job vacancies. Alternatively, candidates can upload a rsum to be included in searches by member companies. Fees are charged for job postings and access to search resumes. Since the late 1990s, the recruitment website has evolved to encompass end-to-end recruitment. Websites capture candidate details and then pool them in client accessed candidate management interfaces (also online). Key players in this sector provide erecruitment software and services to organizations of all sizes and within numerous industry sectors, who want to eenable entirely or partly their recruitment process in order to improve business performance. The online software provided by those who specialize in online recruitment helps organizations attract, test, recruit, employ and retain quality staff with a minimal amount of administration. Online recruitment websites can be very helpful to find candidates that are very actively looking for work and post their resumes online, but they will not attract the "passive" candidates who might respond favorably to an opportunity that is presented to them through other means. Also, some candidates who are actively looking to change jobs are hesitant to put their resumes on the job boards, for fear that their companies, co-workers, customers or others might see their resumes. Job search engines The emergence of meta-search engines allows job-seekers to search across multiple websites. Some of these new search engines index and list the advertisements of traditional job boards. These sites tend to aim for providing a "one-stop shop" for job-seekers. However, there are many other job search engines which index solely from
employers' websites, choosing to bypass traditional job boards entirely. These vertical search engines allow jobseekers to find new positions that may not be advertised on traditional job boards, and online recruitment websites. Interviews: A job interview is a process in which a potential employee is evaluated by an employer for prospective employment in their company, organization, or firm. During this process, the employer hopes to determine whether or not the applicant is suitable for the role. Process model One way to think about the interview process is as three separate, albeit related, phases: (1) the pre interview phase which occurs before the interviewer and candidate meet, (2) the interview phase where the interview is conducted, and (3) the post interview phase where the interviewer forms judgments of candidate qualifications and makes final decisions Pre interview phase: The pre interview phase encompasses the information available to the interviewer beforehand (e.g., resumes, test scores, social networking site information) and the perceptions interviewers form about applicants from this information prior to the actual face-to-face interaction between the two individuals. In this phase, interviewers are likely to already have ideas about the characteristics that would make a person ideal or qualified for the position. Interviewers also have information about the applicant usually in the form of a resume, test scores, or prior contacts with the applicant. Interviewers then often integrate information that they have on an applicant with their ideas about the ideal employee to form a preinterview evaluation of the candidate. Interview phase: The interview phase entails the actual conduct of the interview, the interaction between the interviewer and the applicant. Initial interviewer impressions about the applicant before the interview may influence the amount of time an interviewer spends in the interview with the applicant, the interviewers behavior and questioning of the applicant, and the interviewers post interview evaluations. Pre interview impressions also can affect what the interviewer notices about the interviewee, recalls from the interview, and how an interviewer interprets what the applicant says and does in the interview. As interviews are typically conducted face-to-face, over the phone, or through video conferencing, they are a social interaction between at least two individuals. Thus, the behavior of the interviewer during the interview likely leaks information to the interviewee. That is, you can sometimes tell during the interview whether the interviewer thinks positively or negatively about you. Knowing this information can actually affect how the applicant behaves, resulting in a self-fulfilling prophecy effect Post interview phase: After the interview is conducted, the interviewer must form an evaluation of the interviewees qualifications for the position. The interviewer most likely takes into consideration all the information, even from the pre interview phase, and integrates it to form a post interview evaluation of the applicant. In the final stage of the interview process, the interviewer uses his/her evaluation of the candidate (i.e., in the form of interview ratings or judgment) to make a final decision. Sometimes other selection tools (e.g., work samples, cognitive ability tests, personality tests) are used in combination with the interview to make final hiring decisions; however, interviews remain the most commonly used selection device in North America. For interviewees: Although the description of the interview process above focuses on the perspective of the interviewer, job applicants also gather information on the job and/or organization and form impressions prior to the interview. The interview is a two-way exchange and applicants are also making decisions about whether the company is a good fit for them. Essentially, the process model illustrates that the interview is not an isolated interaction, but rather a complex process that begins with two parties forming judgments and gathering information, and ends with a final interviewer decision.
Tests
Placement and Induction Placement: Placement is a process of assigning a specific job to each of the selected candidates. It involves assigning a specific rank and responsibility to an individual. It implies matching the requirements of a job with the qualifications of the candidate. The significances of placement are as follows: It improves employee morale. It helps in reducing employee turnover. It helps in reducing absenteeism. It helps in reducing accident rates. It avoids misfit between the candidate and the job. It helps the candidate to work as per the predetermined objectives of the organization.
Induction
Once an employee is selected and placed on an appropriate job, the process of familiarizing him with the job and the organization is known as induction. Induction is the process of receiving and welcoming an employee when he first joins the company and giving him basic information he needs to settle down quickly and happily and stars work. Induction is designed to achieve following objectives: To help the new comer to overcome his shyness and overcome his shyness nervousness in meeting new people in a new environment. To give new comer necessary information such as location of a caf, rest period etc. To build new employee confidence in the organization. It helps in reducing labor turnover and absenteeism. It reduces confusion and develops healthy relations in the organization. To ensure that the new comer do not form false impression and negative attitude towards the organization. To develop among the new comer a sense of belonging and loyalty to the organization.
Module III: Training & Developing of Employees Training and Development, Understanding of Performance Management Systems, Potential Appraisal, Career Development TRAINING AND DEVELOPMENT is a subsystem of an organization. It ensures that randomness is reduced and learning or behavioral change takes place in structured format. TRADITIONAL AND MODERN APPROACH OF TRAINING AND DEVLOPMENT Traditional Approach Most of the organizations before never used to believe in training. They were holding the traditional view that managers are born and not made. There were also some views that training is a very costly affair and not worth. Organizations used to believe more in executive pinching. But now the scenario seems to be changing. The modern approach of training and development is that Indian Organizations have realized the importance of corporate training. Training is now considered as more of retention tool than a cost. The training system in Indian Industry has been changed to create a smarter workforce and yield the best results TRAINING AND DEVELOPMENT OBJECTIVES The principal objective of training and development division is to make sure the availability of a skilled and willing workforce to an organization. In addition to that, there are four other objectives: Individual, Organizational, Functional, and Societal. Individual Objectives help employees in achieving their personal goals, which in turn, enhances the individual contribution to an organization. Organizational Objectives assist the organization with its primary objective by bringing individual effectiveness. Functional Objectives maintain the departments contribution at a level suitable to the organizations needs. Societal Objectives ensure that an organization is ethically and socially responsible to the needs and challenges of the society. Training and development encompasses three main activities: training, education, and development.
Training: This activity is both focused upon, and evaluated against, the job that an individual currently holds. Education: This activity focuses upon the jobs that an individual may potentially hold in the future, and is evaluated against those jobs. Development: This activity focuses upon the activities that the organization employing the individual, or that the individual is part of, may partake in the future, and is almost impossible to evaluate. Benefits of Employee training How training helps the organization? Improves job knowledge and skills at all levels of the organization. Improves morale of the workspace Helps people identify with organizational goals Helps create a better corporate image. Improves relationship between boss and subordinate Learns from the trainee. Helps prepare guidelines for work. Provides information for future needs in all areas of organization Organization gets more effective decision making and problem solving skills Aids in increasing productivity and/or quality of work. Creates an appropriate climate for growth, communication Helps employees adjust to change
Benefits to the individuals Helps the individual in making better decisions and effective problem solving Aids in encouraging and achieving self development and self confidence Helps a person handle stress, tension, frustration and conflict Provides information for improving leadership, knowledge, communication skills and attitudes. Increase job satisfaction and recognition Satisfies personal needs of trainer and trainee Helps in eliminating fear in attempting new tasks.
Absence of training Loss of business Constraints on business development Poor quality applicants Increased overtime working Higher rates of pay, overtime premiums and supplements Higher recruitment costs Need for job redesign and revision of job specifications Higher training costs Training process STEP 1: ESTABLISHING A NEEDS ANALYSIS.
This step identifies activities to justify an investment for training. The techniques necessary for the data collection are surveys, observations, interviews, and customer comment cards. Several examples of an analysis outlining specific training needs are customer dissatisfaction, low morale, low productivity, and high turnover. The objective in establishing a needs analysis is to find out the answers to the following questions: Why is training needed? What type of training is needed? When is the training needed? Where is the training needed? Who needs the training? And "Who" will conduct the training? How will the training be performed?
By determining training needs, an organization can decide what specific knowledge, skills, and attitudes are needed to improve the employees performance in accordance with the companys standards. STEP 2: DEVELOPING TRAINING PROGRAMS AND MANUALS. This step establishes the development of current job descriptions and standards and procedures. Job descriptions should be clear and concise and may serve as a major training tool for the identification of guidelines. Once the job description is completed, a complete list of standards and procedures should be established from each responsibility outlined in the job description. This will standardize the necessary guidelines for any future training. STEP 3: DELIVER THE TRAINING PROGRAM. This step is responsible for the instruction and delivery of the training program. Once you have designated your trainers, the training technique must be decided. One-on-one training, on-the-job training, group training, seminars, and workshops are the most popular methods. Before presenting a training session, make sure you have a thorough understanding of the following characteristics of an effective trainer. The trainer should have: A desire to teach the subject being taught. A working knowledge of the subject being taught. An ability to motivate participants to want to learn. A good sense of humor. A dynamic appearance and good posture. A strong passion for their topic. A strong compassion towards their participants. Appropriate audio/visual equipment to enhance the training session.
For a training program to be successful, the trainer should be conscious of several essential elements, including a controlled environment, good planning and the use of various training methods, good communication skills, and trainee participation. STEP 4: EVALUATE THE TRAINING PROGRAM. This step will determine how effective and profitable your training program has been. Methods for evaluation are pre-and post- surveys of customer comments cards, the establishment of a cost/benefit analysis outlining your expenses and returns, and an increase in customer satisfaction and profits. The reason for an evaluation system is simple. The evaluations of training programs are without a doubt the most important step in the training process. It is this step that will indicate the effectiveness of both the training as well as the trainer. Methods
There are various methods of training, which can be divided in to cognitive and behavioral methods. Trainers need to understand the pros and cons of each method, also its impact on trainees keeping their background and skills in mind before giving training. Cognitive methods are more of giving theoretical training to the trainees. The various methods under Cognitive approach provide the rules for how to do something, written or verbal information, demonstrate relationships among concepts, etc. These methods are associated with changes in knowledge and attitude by stimulating learning. The various methods that come under Cognitive approach are: LECTURES DEMONSTRATIONS DISCUSSIONS
Behavioral methods are more of giving practical training to the trainees. The various methods under Behavioral approach allow the trainee to behavior in a real fashion. These methods are best used for skill development. The various methods that come under Behavioral approach are: GAMES AND SIMULATIONS BEHAVIOR-MODELING BUSINESS GAMES CASE STUDIES Performance management According to Armstrong and Baron (1998), Performance Management is both a strategic and an integrated approach to delivering successful results in organizations by improving the performance and developing the capabilities of teams and individuals. The term performance management gained its popularity in early 1980s when total quality management programs received utmost importance for achievement of superior standards and quality performance. Tools such as job design, leadership development, training and reward system received an equal impetus along with the traditional performance appraisal process in the new comprehensive and a much wider framework. Performance management is an ongoing communication process which is carried between the supervisors and the employees throughout the year. The process is very much cyclical and continuous in nature. A performance management system includes the following actions. Developing clear job descriptions and employee performance plans which includes the key result areas (KRA') and performance indicators. Selection of right set of people by implementing an appropriate selection process. Negotiating requirements and performance standards for measuring the outcome and overall productivity against the predefined benchmarks. Providing continuous coaching and feedback during the period of delivery of performance. Identifying the training and development needs by measuring the outcomes achieved against the set standards and implementing effective development programs for improvement. Holding quarterly performance development discussions and evaluating employee performance on the basis of performance plans. Designing effective compensation and reward systems for recognizing those employees who excel in their jobs by achieving the set standards in accordance with the performance plans or rather exceed the performance benchmarks. Providing promotional/career development support and guidance to the employees.
Performing exit interviews for understanding the cause of employee discontentment and thereafter exit from an organization.
A performance management process sets the platform for rewarding excellence by aligning individual employee accomplishments with the organizations mission and objectives and making the employee and the organization understand the importance of a specific job in realizing outcomes. By establishing clear performance expectations which includes results, actions and behaviors, it helps the employees in understanding what exactly is expected out of their jobs and setting of standards help in eliminating those jobs which are of no use any longer. Through regular feedback and coaching, it provides an advantage of diagnosing the problems at an early stage and taking corrective actions. To conclude, performance management can be regarded as a proactive system of managing employee performance for driving the individuals and the organizations towards desired performance and results. Its about striking a harmonious alignment between individual and organizational objectives for accomplishment of excellence in performance.
Potential Appraisal The potential appraisal refers to the appraisal i.e. identification of the hidden talents and skills of a person. The person might or might not be aware of them. Potential appraisal is a future oriented appraisal whose main objective is to identify and evaluate the potential of the employees to assume higher positions and responsibilities in the organizational hierarchy. Many organizations consider and use potential appraisal as a part of the performance appraisal processes. Potential appraisal can serve the following purposes: To advise employees about their overall career development and future prospects Help the organization to chalk out succession plans Motivate the employees to further develop their skills and competencies. To identify the training needs.
Superior appraisals MBO (Management By Objectives) Psychological and psychometric tests Management games like role playing Leadership exercises etc.
Potential appraisal helps to identify what can happen in future so that it can be guided and directed towards the achievement of individual and organizational growth and goals. Therefore, potential should be included as a part of the Performance appraisal in organizations. Performance appraisals The broad objectives of performance appraisal are: o o o o o o o Uses: Determining appropriate salary increases and bonuses for workers based on performance measure. Determining promotions or transfers depending on the demonstration of employee strengths and weaknesses. Determining training needs and evaluation techniques by identifying areas of weaknesses. Promoting effective communication within organizations through the interchange of dialogue between supervisors and subordinates. Motivating employees by showing them where they stand, and establishing a data bank on appraisal for rendering assistance in personnel decisions. To help the employee to overcome his weaknesses and improve his strengths so as to enable him to achieve the desired performance. To generate adequate feedback and guidance from the immediate superior to an employee working under him. To contribute to the growth and development of an employee through helping him in realistic goal setting. To provide inputs to system of rewards (comprising salary increments, transfers, promotions, demotions or terminations) and salary administration. To help in creating a desirable culture and tradition in the organization. To help the organization to identify employees for the purpose of motivating, training and developing them. To generate significant, relevant, free, and valid information about employees.
PLANNING THE APPRAISAL A meaningful performance appraisal is a two-way process that benefits both the employee and the manager. For employees, appraisal is the time to find out how the manager thinks they are performing in the job. For a manager, a formal appraisal interview is a good time to find out how employees think they are performing on the job. The planning appraisal strategy has to be done: Before the appraisal o o o o Establish key task areas and performance goals. Set performance goals for each key task area. Get the facts. Schedule each appraisal interview well in advance.
During the appraisal 1 Encourage two-way communication. 2. Discuss and agree on performance goals for the future. 3. Think about how you can help the employee to achieve more at work. 4. Record notes of the interview. 5. End the interview on an upbeat note.
After the appraisal o o Prepare a formal record of the interview. Monitor performance.
COMPONENTS OF PERFORMANCE APPRAISAL The components that should be used in a performance appraisal system flow directly from the specific objectives of appraisal. The following components are being used in a number of Indian organisations. o o o o o o o o o o Key Performance Areas (KPAs) / Key Result Areas (KRAs) Tasks/targets/objectives; attributes/qualities/traits Self appraisal Performance analysis Performance ratings Performance review, discussion or counseling Identification of training / development needs Ratings / assessment by appraiser Assessment / review by reviewing authority Potential appraisal.
TYPES OF PERFORMANCE APPRAISAL There are two types of performance appraisal systems which are normally used in organizations: (i) close ended appraisal system and, (ii) open ended appraisal system. In the close ended appraisal system, commonly used in government organizations and public enterprises, a confidential report is submitted on the performance of the employee. Only where an adverse assessment is made against an individual, the concerned individual is informed about the same. The main shortcoming of this system is that an individual is not informed about his/her inherent strengths and weaknesses and, therefore, is not given an opportunity to respond to the assessment made on him/her. The employees are, therefore, in a constant dilemma as to how their performance is viewed by the management. In the open ended appraisal system, unlike in the close ended system, the performance of the individual is discussed with him, and he is ranked in a five or ten point rating scale. The company uses this tool primarily for rewarding a good performer or for other considerations like promotions. The main weakness of this system is that all the employees are ranked in a particular scale, and whereas the good performers are rewarded, there is no concerted effort to motivate the average performers in performing better. Another weakness of the grading system is that the appraisal may turn out to be more subjective in nature due to insufficient data maintained on the individual. This system also leads to unnecessary comparisons made on different individuals performing similar jobs.
Performance appraisal can be a closed affair, where the appraisees do not get any chance to know or see how they have been evaluated; or it can be completely open, where the appraisees have the opportunity of discussing with their superiors during the evaluation exercise. Career Development Career development involves managing your career either within or between organizations. It also includes learning new skills, and making improvements to help you in your career. Career development is an ongoing, lifelong process to help you learn and achieve more in your career. Why is it important Career development is a term used for the methods an individual uses to advance in a job or career. A career-development path or plan is no longer the structured, fairly sequential, 20- to 30-year road map that prevailed in earlier generations.
Setting Goals Designing your own Development Staying competitive Have high levels of satisfaction due to striving for and achieving personal goals Make job and education choices that help them achieve their goals Are less stressed, and therefore have less physical and emotional ill-health Are open to new opportunities
Objectives Fostering Better Communication in Organization: The main objective of designing a career development system is to foster better communication within the organization as a whole. Assisting with Career Decisions: A career development system provides employees as well as managers with helpful assistance with career decisions. They get an opportunity to assess their skills and competencies and know their goals and future aspirations. Better Use of Employee Skills: A career development system helps organization make better use of employee skills. Since managers know their skills and competencies and therefore, can put them at a job where they will be able to produce maximum output. Setting Realistic Goals: Setting realistic goals and expectations is another main objective of a career development system. It helps both employees and organization to understand what is feasible for them and how they can achieve their goals. Creating a Pool of Talented Employees: Creating a pool of talented employees is the main objective of organizations. After all, they need to meet their staffing needs in present and future and a career development system helps them fulfill their requirements. Enhancing the Career Satisfaction: Organizations especially design career development systems for enhancing the career satisfaction of their employees. Since they have to retain their valuable assets and prepare them for top notch positions in future, they need to understand their career requirements and expectations from their organization.
Feedback: Giving feedback on every step is also required within an organization to measure the success rate of a specific policy implemented and initiatives taken by the organization. Process:
Self-Assessment: Discover your desires and passions. You may know exactly what you want to do. Career Skill Assessment: This sounds similar to the self-assessment, but rather than focusing on your personality and interests, career skill assessments focus on your core job strengths and weaknesses. Setting Your Career Objective: Now that you understand your personality, interests, skills and strengths, it's time to make a decision! You may want to explore different career options to discover your best choice. Career Development Plan: The nuts and bolts of planning your career development process. Set goals and timelines based on your career objective. Look at an example career development plan, or use the career development plan template to help you work through this step Implement Career Development Plan: It's action time! If your plan involves a career change. Get the Most Out of your Career: To get the most out of your new career, planning strategies and learning skills will help you get to the next level. We've also created a free e-course to help you with this step of the process. Roles Employers role: Employers role should be active. The manager should encourage, facilitate and reward an employee in his or her career advancement. Possible Employer Initiatives are: Job postings Performance appraisal for career planning Counselling by manager Pre retirement programmes Succession planning Formal mentoring
Employees role:
In todays organisations employees are responsible for initiating and maintaining their own careers. It is up to the each individual to identify his or her own knowledge, skills, abilities, interests and values and seek out the information about career options in order to set goals and develop career plans. Career Development tips Flash forward to the future: What will the quality if your life be if you do not improve the results of your efforts? What will it be if those results are outstanding? As Henry Ford once observed, Whether you think you can or think you cant, youre right. Invest in professional development: New habits always require new skills. Identify the skills you need to improve to progress in your career. Develop these skills by attending seminars and workshops, enrolling in evening and/or weekend courses (e.g. at a community college), and reading books to expand and deepen your expertise. Find a mentor: Changing habits almost always requires help. Just as losers will help you lose even more, winners will help you increase the nature and extent of your success. Find one or two persons you request and trust. Explain what you are trying to accomplish and how you plan to do it. Ask for frank advice, the most difficult to obtain but the most valuable to have. Module IV: Managing Compensation Job evaluation, Methods of Job Evaluation, Strategic Compensation, Equity Theory, Components of Pay Structure, Designing and Administration of Wage and Salary Structure, Job Evaluation Job evaluation is a systematic way of determining the value/worth of a job in relation to other jobs in an organization. It tries to make a systematic comparison between jobs to assess their relative worth for the purpose of establishing a rational pay structure. Job evaluation needs to be differentiated from job analysis. Job analysis is a systematic way of gathering information about a job. Every job evaluation method requires at least some basic job analysis in order to provide factual information about the jobs concerned. Thus, job evaluation begins with job analysis and ends at that point where the worth of a job is ascertained for achieving pay equity between jobs. Job Evaluation Methods There are three basic methods of job evaluation: (1) ranking, (2) classification, (3) factor comparison. While many variations of these methods exist in practice, the three basic approaches are described here. Ranking Method Perhaps the simplest method of job evaluation is the ranking method. According to this method, jobs are arranged from highest to lowest, in order of their value or merit to the organization. Jobs can also be arranged according to the relative difficulty in performing them. The jobs are examined as a whole rather than on the basis of important factors in the job; the job at the top of the list has the highest value and obviously the job at the bottom of the list will have the lowest value. Jobs are usually ranked in each department and then the department rankings are combined to develop an organizational ranking. The following table is a hypothetical illustration of ranking of jobs. The variation in payment of salaries depends on the variation of the nature of the job performed by the employees. The ranking method is simple to understand and practice and it is best suited for a small organization. Its simplicity however works to its disadvantage in big organizations because rankings are difficult to develop in a large, complex organization.
Classification Method According to this method, a predetermined number of job groups or job classes are established and jobs are assigned to these classifications. This method places groups of jobs into job classes or job grades. Separate classes may include office, clerical, managerial, personnel, etc. Following is a brief description of such a classification in an office. a. Class I - Executives: Further classification under this category may be Office Manager, Deputy Office manager, Office superintendent, Departmental supervisor, etc. b. Class II - Skilled workers: Under this category may come the Purchasing assistant, Cashier, Receipts clerk, etc. c. Class III - Semiskilled workers: Under this category may come Steno typists, Machine-operators, Switchboard operator etc. d. Class IV - Semiskilled workers: This category comprises Daftaris, File clerks, Office boys, etc. The job classification method is less subjective when compared to the earlier ranking method. The system is very easy to understand and acceptable to almost all employees without hesitation. One strong point in favour of the method is that it takes into account all the factors that a job comprises. This system can be effectively used for a variety of jobs. The weaknesses of the job classification method are: Even when the requirements of different jobs differ, they may be combined into a single category, depending on the status a job carries. It is difficult to write all-inclusive descriptions of a grade. The method oversimplifies sharp differences between different jobs and different grades. When individual job descriptions and grade descriptions do not match well, the evaluators have the tendency to classify the job using their subjective judgments. Factor Comparison Method A more systematic and scientific method of job evaluation is the factor comparison method. Though it is the most complex method of all, it is consistent and appreciable. Under this method, instead of ranking complete jobs, each job is ranked according to a series of factors. These factors include mental effort, physical effort, skill needed, responsibility, supervisory responsibility, working conditions and other such factors (for instance, know-how, problem solving abilities, accountability, etc.). Pay will be assigned in this method by comparing the weights of the factors required for each job, i.e., the present wages paid for key jobs may be divided among the factors weighted by importance (the most important factor, for instance, mental effort, receives the highest weight). In other words, wages are assigned to the job in comparison to its ranking on each job factor. The steps involved in factor comparison method may be briefly stated thus: Select key jobs (say 15 to 20), representing wage/salary levels across the organization. The selected jobs must represent as many departments as possible. Find the factors in terms of which the jobs are evaluated (such as skill, mental effort, responsibility, physical effort, working conditions, etc.). Rank the selected jobs under each factor (by each and every member of the job evaluation committee) independently.
Assign money value to each level of each factor (example: consider problem solving is one of the factor, what level of problem solving is required {basic, intermediate or advance}) and determine the wage rates for each key job. The wage rate for a job is apportioned along the identified factors. All other jobs are compared with the list of key jobs and wage rates are determined. An example of how the factor comparison method works is given below: After the wage rate for a job is distributed along the identified and ranked factors, all other jobs in the department are compared in terms of each factor. Suppose the job of a 'painter' is found to be similar electrician in skill (15), fitter in mental effort (10), welder in physical effort (12) cleaner in responsibility! (6) and labourer in working conditions (4). The wage rate for this job would be (15+10+12+6+4) is 47. Point Method This method is widely used currently. Here, jobs are expressed in terms of key factors. Points are assigned to each factor after prioritising each factor in order of importance. The points are summed up to determine the wage rate for the job. Jobs with similar point totals are placed in similar pay grades. The procedure involved may be explained thus: a. Select key jobs. Identify the factors common to all the identified jobs such as skill, effort, responsibility, etc. b. Divide each major factor into a number of sub factors. Each sub factor is defined and expressed clearly in the order of importance, preferably along a scale. The most frequent factors employed in point systems are (i) Skill (key factor); Education and training required, Breadth/depth of experience required, Social skills required, Problem-solving skills, Degree of discretion/use of judgement, Creative thinking (ii) Responsibility/Accountability: Breadth of responsibility, Specialised responsibility, Complexity of the work, Degree of freedom to act, Number and nature of subordinate staff, Extent of accountability for equipment/plant, Extent of accountability for product/materials; (iii) Effort: Mental demands of a job, Physical demands of a job, Degree of potential stress c. Find the maximum number of points assigned to each job (after adding up the point values of all sub-factors of such a job). This would help in finding the relative worth ol a job. For instance, the maximum points assigned to an officer's job in a bank come to 540. The manager's job, after adding up key factors + sub factors points, may be getting a point value of say 650 from the job evaluation committee. This job is now priced at a higher level. d. Once the worth of a job in terms of total points is expressed, the points are converted into money values keeping in view the hourly/daily wage rates. A wage survey is usually undertaken to collect wage rates of certain key jobs in the organization. Merits and Demerits The point method is a superior and widely used method of evaluating jobs. It forces raters to look into all key factors and sub-factors of a job. Point values are assigned to all factors in a systematic way, eliminating bias at every stage. It is reliable because raters using similar criteria would get more or less similar answers. The methodology underlying the approach contributes to a minimum of rating error (Robbins p. 361). It accounts for differences in wage rates for various jobs on the strength of job factors. Jobs may change over time, but the rating scales established under the point method remain unaffected. On the negative side, the point method is complex. Preparing a manual for various jobs, fixing values for key and sub-factors, establishing wage rates for different grades, etc., is a time consuming process, According to Decenzo and Robbins, "the key criteria must be carefully
and clearly identified, degrees of factors have to be agreed upon in terms that mean the same to all rates, the weight of each criterion has to be established and point values must be assigned to degrees". This may be too taxing, especially while evaluating managerial jobs where the nature of work (varied, complex, novel) is such that it cannot be expressed in quantifiable numbers. Limitations of Job Evaluation o o o o o Job evaluation is not exactly scientific. 'The modus operand of most of the techniques is difficult to understand, even for the supervisors. The factors taken by the programme are not exhaustive. There may be wide fluctuations in compensable factors in view of changes in technology, values and aspirations of employers, etc. Employees, trade union leaders, management and the programme operators may assign different weightage to different factors, thus creating grounds for dispute
Techniques for Designing Jobs Basically, there are four techniques used in the design of jobs. These include Job simplification, Job enlargement, Job enrichment and Job rotation. a. Job Simplification Job simplification is a design method whereby jobs are divided into smaller components and subsequently assigned to workers as whole jobs. Simplification of work requires that jobs be broken down into their smallest units and then analyzed. Each resulting sub-unit typically consists of relatively few operations. On the negative side, job simplification results in workers experiencing boredom, frustration, alienation, lack of motivation and low job satisfaction. This, in turn, leads to lower productivity and increased cost. b. Job Enlargement Job enlargement expands a job horizontally. It increases job scope; that is, it increases the number of different operations required in a job and the frequency with which the job cycle is repeated. By increasing the number of tasks an individual performs, job enlargement increases the job scope, or job diversity. Instead of only sorting the incoming mail by department, for instance, a mail sorter's job could be enlarged to include physically delivering the mail to the various departments or running outgoing letters through the postage meter. Efforts at job enlargement have met with less than enthusiastic results. As one employee who experienced such a redesign on his job remarked, "Before I had one lousy job. Now, through enlargement, I have three!" So while job enlargement attacks the lack of diversity in over specialised jobs, it has done little to provide challenge or meaningfulness to a worker's activities. c. Job Rotation Job rotation refers to the movement of an employee from one job to another. Jobs themselves are not actually changed, only the employees are rotated among various jobs. An employee who works on a routine job moves to work on another job for some hours/days/months and returns back to the first job. This measure relieves the employee from the boredom and monotony, improves the employee's skills regarding various jobs and prepares worker's self-image and provides personal growth. However, frequent job rotations are not advisable in view of their negative impact on the organisation and the employee. d. Job Enrichment
Job enrichment, as currently practiced in industry, is a direct outgrowth of Herzberg's Two Factor Theory of motivation. It is, therefore, based on the assumption that in order to motivate personnel, the job itself must provide opportunities for achievement recognition, responsibility, advancement and growth. The basic idea is to restore to jobs the elements of interest that were taken away under intensive specialization. Job enrichment tries to embellish the job with factors that Herzberg characterized as motivators: achievement, recognition, increased responsibilities, opportunities for growth, advancement and increased competence. Strategic Compensation Strategic compensation is the type of compensation scheme implemented to improve the motivation of your people to perform better. It must also have the potential of strengthening your image as a good employer. A good reward scheme has the potential of motivating employees if implemented with care. But it can demotivate if poorly handled. There is nothing more immediate in affecting the behavior of employees than a salary scheme that is not designed well or badly implemented even if the scheme is good. Benchmark your salary scheme so that it is at par with salaries paid in the open market for similar types of jobs. Doing this will minimize the possibility of good employees leaving your organization for a more lucrative job elsewhere. Paying too low a salary may save you money but will not attract quality people. On the other hand, it may compel good employees to leave. Paying competitive salaries is in accordance with sound employee recruitment, employee engagement and employee retention practices. You are making it a truly strategic compensation. Salary Banding Salary banding is part of strategic compensation system. Jobs with similar responsibilities and workload are grouped together under a specific category. The salary grades under each category can vary in number depending on your strategy. This can cut across departments and group of companies. It is necessary to carry out this exercise in order to achieve pay parity and pay equity, both vertically and horizontally. Salary bands follow the existing organizational structure. This is not good for employee development. Your employees, especially the good ones, have nothing to look forward to. They are well aware that if they move up the organizational ladder, their earnings will also improve. There will come the time when they consider that enough is enough. If your organization fails to utilize strategic compensation to manage employee productivity, it may have overlooked the importance of strategic compensation as an effective employee motivational tool. Making Your Compensation System More Strategic In order to ensure that your strategic compensation is truly strategic in nature, see to it that it can motivate every employee. It is important to know the differences between the different heads of payment that you make to your employees. Your people need to know what payments they may or will not get under certain conditions or when certain conditions do not exist. With effective and regular communication with your employees there are less chances of misconception and misunderstanding. Avoid situations under which your people assume things that cause you problems. Compensation is always a sensitive issue. It can become more complicated if you have a unionized workforce. This requires caution and careful planning otherwise you may find that your compensation system will lose its effectiveness in influencing people's behaviors.
Equity theory Equity theory is a theory that attempts to explain relational satisfaction in terms of perceptions of fair/unfair distributions of resources within interpersonal relationships. Considered one of the justice theories, equity theory was first developed in 1963 by John Stacey Adams, a workplace and behavioral psychologist, who asserted that employees seek to maintain equity between the inputs that they bring to a job and the outcomes that they receive from it against the perceived inputs and outcomes of others (Adams, 1965). The belief is that people value fair treatment which causes them to be motivated to keep the fairness maintained within the relationships of their coworkers and the organization. The structure of equity in the workplace is based on the ratio of inputs to outcomes. Inputs are the contributions made by the employee for the organization. Definition of equity An individual will consider that he is treated fairly if he perceives the ratio of his inputs to his outcomes to be equivalent to those around him. Thus, all else being equal, it would be acceptable for a more senior colleague to receive higher compensation, since the value of his experience (and input) is higher. The way people base their experience with satisfaction for their job is to make comparisons with themselves to people they work with. If an employee notices that another person is getting more recognition and rewards for their contributions, even when both have done the same amount and quality of work, it would persuade the employee to be dissatisfied. This dissatisfaction would result in the employee feeling underappreciated and perhaps worthless. This is in direct contrast with the idea of equity theory, the idea is to have the rewards (outcomes) be directly related with the quality and quantity of the employees contributions (inputs). If both employees were perhaps rewarded the same, it would help the workforce realize that the organization is fair, observant, and appreciative. This can be illustrated by the following equation:
Inputs: Inputs are defined as each participants contributions to the relational exchange and are viewed as entitling him/her to rewards or costs. The inputs that a participant contributes to a relationship can be either assets entitling him/her to rewards or liabilities - entitling him/her to costs. The entitlement to rewards or costs ascribed to each input vary depending on the relational setting. In industrial settings, assets such as capital and manual labor are seen as "relevant inputs" inputs that legitimately entitle the contributor to rewards. In social settings, assets such as physical beauty and kindness are generally seen as assets entitling the possessor to social rewards. Individual traits such as boorishness and cruelty are seen as liabilities entitling the possessor to costs (Walster, Traupmann & Walster, 1978). Inputs typically include any of the following Time, Effort, Loyalty, Hard Work, Commitment, Ability, Adaptability, Flexibility, Tolerance, Determination, Enthusiasm, Personal sacrifice, Trust in superiors, Support from co-workers and colleagues, Skill Outcomes: Outputs are defined as the positive and negative consequences that an individual perceives a participant has incurred as a consequence of his/her relationship with another. When the ratio of inputs to outcomes is close, than the employee should have much satisfaction with their job. Outputs can be both tangible and intangible (Walster, Traupmann & Walster, 1978). Typical outcomes include any of the following: Job security, Salary, Employee benefit, Expenses, Recognition, Reputation, Responsibility, Sense of achievement, Praise, Thanks, Stimuli
Criticisms and related theories: Criticism has been directed toward both the assumptions and practical application of equity theory. Scholars have questioned the simplicity of the model, arguing that a number of demographic and psychological variables affect people's perceptions of fairness and interactions with others. Furthermore, much of the research supporting the basic propositions of equity theory has been conducted in laboratory settings, and thus has questionable applicability to real-world situations (Huseman, Hatfield & Miles, 1987). Critics have also argued that people might perceive equity/inequity not only in terms of the specific inputs and outcomes of a relationship, but also in terms of the overarching system that determines those inputs and outputs. Components of Pay Structure Pay structures, also known as salary structures, set out the different levels of pay for jobs, or groups of jobs, by reference to: their relative internal value, as established by job evaluation external relativities, via market rate surveys where appropriate, negotiated rates for the job
What are the main characteristics of Pay Structures? indicate rates of pay for different jobs provide scope for pay progression via performance, competence, contribution, skill or service Contain pay ranges for jobs grouped into grades, individual jobs or job families.
The most important types of pay structure, or salary structure, are: Graded structures a sequence of overlapping job grades into which jobs of broadly equivalent size are allocated. Each grade has a range, the maximum of which is usually 20 to 50% above the minimum. Broadband similar to conventional graded structures, but with far fewer and far wider bands. The maximum of the band can be 100% or more above the minimum. Job Family Structures Each job family has a different graded structure. Jobs are allocated to a job family based on activities carried out; skills and competencies e.g. Information Technology is a perfect example of a job family for which there is usually a separate grade structure. DEVELOPING A WAGE STRUCTURE Wage structures result from pricing job structures. Job structures, in turn, result from the application of formal or informal job evaluation to an organization's jobs. In order to price a job structure, it is necessary to use dollar amounts from either current pay rates or the market data collected from wage surveys. A wage structure, then, is a combination of the job structure, the labor market, and the organization's decisions regarding the wage level. For example, the manner in which job relationships were determined may influence job pricing. If a formal job evaluation plan was employed, the type of plan has an effect. The extent of union involvement in a formal job evaluation program may also influence job pricing. If an informal job evaluation was used to determine the job structure, the pricing process may be influenced by whether the informally derived job structure makes use of pay grades or separate jobs. Both unions and management tend to favor simplification of pay structures, however, and this agreement reduces the variation in pricing procedures.
The present wage and salary rates in an organization will clearly influence any changes made in its current wage structure. The current rates represent a series of decisions about all aspects of the program, including past market
rates, organizational differentials, and customary differences that have survived. Most often, however, the job structure is priced out through the use of market rates. This means the employment of wage surveys. (See Chapter 8 and ERIDLC Course 73: Analyzing Salary Surveys.) Wage survey results are often employed as an important and at times the only consideration in pricing job structures as will be examined toward the end of this chapter. This exclusive use is most often limited by the fact that surveys usually secure data on a limited number of key jobs that vary in importance and cost significance from one organization to another. A second limitation is that evaluated rates may easily be above market rates for certain jobs. Hence, market rates while a very important factor in pricing jobs are not the only consideration. As will be seen, however, if market rates are higher than evaluated rates, market rates are usually followed. The cost consequences of jobs often influence job pricing just as much as market rates do. In most organizations, there is a fairly well defined group of jobs that represents an important segment of the total labor costs of the company. It is important to note that although some organizations are more restricted by labor cost considerations than others, prices assigned this group of jobs may greatly affect an organization's competitive position. Rates assigned these jobs during job-structure pricing largely determine the wage level of the firm, and wage structure relationships are built around this cost center Module V: Employee Relations Overview of Industrial Relations, Industrial disputes, Collective Bargaining, Workers Participation and Management, Grievance handling What is Employee Relations? Every individual shares a certain relationship with his colleagues at the workplace. The relationship is either warm, so-so or bad. The relationship can be between anyone in the organization - between co workers, between an employee and his superior, between two members in the management and so on. It is important that the employees share a healthy relationship with each other to deliver their best performances. Industrial relations is a multidisciplinary field that studies the employment relationship. Industrial relations is increasingly being called employment relations because of the importance of non-industrial employment relationships. Many outsiders also equate industrial relations to labour relations. Industrial relations studies examine various employment situations, not just ones with a unionized workforce. Industrial relations has three faces: science building, problem solving, and ethical. In the science building phase, industrial relations is part of the social sciences, and it seeks to understand the employment relationship and its institutions through high-quality, rigorous research. In this vein, industrial relations scholarship intersects with scholarship in labor economics, industrial sociology, labor and social history, human resource management, political science, law, and other areas. In the problem solving phase, industrial relations seeks to design policies and institutions to help the employment relationship work better. In the ethical phase, industrial relations contains strong normative principles about workers and the employment relationship, especially the rejection of treating labor as a commodity in favor of seeing workers as human beings in democratic communities entitled to human rights. The term human relation refers to the whole field of relationship that exists because of the necessary collaboration of men and women in the employment process of modern industry. It is that part of management which is concerned with the management of enterprise - whether machine operator, skilled worker, or manager. It deals with either the relationship between the state and employers and workers organization and the relation between the occupational organizations themselves
Objectives:
To safeguard the interest of labor and management by securing the highest level of mutual understanding and good-will among all those sections in the industry which participate in the process of production. To avoid industrial conflict or strife and develop harmonious relations, which are an essential factor in the productivity of workers and the industrial progress of a country. To rise productivity to a higher level in an era of full employment by lessening the tendency to high turnover and frequency absenteeism. To establish and nurse the growth of an Industrial Democracy based on labor partnership in the sharing of profits and of managerial decisions, so that ban individuals personality may grow its full stature for the benefit of the industry and of the country as well. To eliminate, as far as is possible and practicable, strikes, lockouts and gheraos by providing reasonable wages, improved living and working conditions, said fringe benefits. To establish government control of such plants and units as are running at a loss or in which productions has to be regulated in the public interest. Improvements in the economic conditions of workers in the existing state of industrial managements and political government. Control exercised by the state over industrial undertaking with a view to regulating production and promoting harmonious industrial relations. Socializations or rationalization of industries by making the state itself a major employer Vesting of a proprietary interest of the workers in the industries in which they are employed.
The main aspect of Industrial Relations are: Labor Relations, i.e. relations between union and management Employer-employees relations, i.e. relations between management and employees. Group relations, i.e. relations between various groups of workmen. Community or Public relations, i.e. relations between industry and society. Promotions and development of healthy labor-managements relations. Maintenance of industrial peace and avoidance of industrial strife Development of true industrial Democracy. Industrial Dispute An industrial dispute may be defined as a conflict or difference of opinion between management and workers on the terms of employment. It is a disagreement between an employer and employees' representative; usually a trade union, over pay and other working conditions and can result in industrial actions. When an industrial dispute occurs, both the parties, that is the management and the workmen, try to pressurize each other. The management may resort to lockouts while the workers may resort to strikes, picketing or gheraos. From the point of view of the employer, an industrial dispute resulting in stoppage of work means a stoppage of production. This results in increase in the average cost of production since fixed expenses continue to be incurred. It also leads to a fall in sales and the rate of turnover, leading to a fall in profits. The employer may also be liable to compensate his customers with whom he may have contracted for regular supply. Apart from the immediate economic effects, loss of prestige and credit, alienation of the labor force, and other non-economic, psychological and social consequences may also arise. Loss due to destruction of property, personal injury and physical intimidation or inconvenience also arises. Reasons for disputes
Personnel and retrenchment: The personnel and retrenchment have also been an important factor which accounted for disputes. During the year 2002, disputes caused by personnel were 14.1% while those caused by retrenchment and layoffs were 2.2% and 0.4% respectively. In 2003, a similar trend could be seen, wherein 11.2% of the disputes were caused by personnel, while 2.4% and 0.6% of disputes were caused by retrenchment and layoffs. In year 2005, only 9.6% of the disputes were caused by personnel, and only 0.4% were caused by retrenchment. Indiscipline and violence: From the given table, it is evident that the number of disputes caused by indiscipline has shown an increasing trend. In 2002, 29.9% of disputes were caused because of indiscipline, which rose up to 36.9% in 2003. Similarly in 2004 and 2005, 40.4% and 41.6% of disputes were caused due to indiscipline respectively. During the year 2003, indiscipline accounted for the highest percentage (36.9%) of the total time-loss of all disputes, followed by cause-groups wage and allowance and personnel with 20.4% and11.2% respectively. A similar trend was observed in 2004 where indiscipline accounted for 40.4% of disputes. Bonus: Bonus has always been an important factor in industrial disputes. 6.7% of the disputes were because of bonus in 2002 and 2003 as compared to 3.5% and 3.6% in 2004 and 2005 respectively. Leave and working hours: Leaves and working hours have not been so important causes of industrial disputes. During 2002, 0.5% of the disputes were because of leave and hours of work while this percentage increased to 1% in 2003. During 2004, only 0.4% of the disputes were because of leaves and working hours. Miscellaneous: The miscellaneous factors include Inter/Intra Union Rivalry Charter of Demands Work Load Standing orders/rules/service conditions/safety measures Non-implementation of agreements and awards etc. Collective Bargaining Collective bargaining is a process of negotiations between employers and a group of employees aimed at reaching agreements that regulate working conditions. The interests of the employees are commonly presented by representatives of a trade union to which the employees belong. The collective agreements reached by these negotiations usually set out wage scales, working hours, training, health and safety, overtime, grievance mechanisms and rights to participate in workplace or company affairs. The union may negotiate with a single employer or may negotiate with a group of businesses, depending on the country, to reach an industry wide agreement. A collective agreement functions as a labor contract between an employer and one or more unions. Collective bargaining consists of the process of negotiation between representatives of a union and employers in respect of the terms and conditions of employment of employees, such as wages, hours of work, working conditions and grievance-procedures, and about the rights and responsibilities of trade unions. The collective bargaining process comprises of five core steps: Prepare: This phase involves composition of a negotiation team. The negotiation team should consist of representatives of both the parties with adequate knowledge and skills for negotiation. In this phase both the employers representatives and the union examine their own situation in order to develop the issues that they believe will be most important. The first thing to be done is to determine whether there is actually any reason to negotiate at all. A correct understanding of the main issues to be covered and intimate knowledge of operations, working conditions, production norms and other relevant conditions is required.
Discuss: Here, the parties decide the ground rules that will guide the negotiations. A process well begun is half done and this is no less true in case of collective bargaining. An environment of mutual trust and understanding is also created so that the collective bargaining agreement would be reached. Propose: This phase involves the initial opening statements and the possible options that exist to resolve them. In a word, this phase could be described as brainstorming. The exchange of messages takes place and opinion of both the parties is sought. Bargain: negotiations are easy if a problem solving attitude is adopted. This stage comprises the time when what ifs and supposals are set forth and the drafting of agreements take place. Settlement: Once the parties are through with the bargaining process, a consensual agreement is reached upon wherein both the parties agree to a common decision regarding the problem or the issue. This stage is described as consisting of effective joint implementation of the agreement through shared visions, strategic planning and negotiated change. Workers Participation and Management http://www.scribd.com/doc/13280949/Workers-Participation-in-Management Introduction: Three groups of managerial decisions affect the workers of any industrial establishment and hence the workers must have a say in it. Economic decisions methods of manufacturing, automation, shutdown, lay-offs, mergers. Personnel decisions recruitment and selection, promotions, demotions, transfers, grievance settlement, work distribution. Social decisions hours of work, welfare measures, questions affecting work rules and conduct of individual workers safety, health, sanitation and noise control.
Objectives: An instrument for increasing the efficiency of enterprises and establishing harmonious relations. A device for developing social education for promoting solidarity among workers and for tapping human talents. A means for achieving industrial peace and harmony which leads to higher productivity and increased production. A humanitarian act, elevating the status of a worker in the society. An ideological way of developing self-management and promoting industrial democracy.
Importance: 1) Unique motivational power and a great psychological value. 2) Peace and harmony between workers and management. 3) Workers get to see how their actions would contribute to the overall growth of the company. 4) They tend to view the decisions as `their own and are more enthusiastic in their implementation. Participation makes them more responsible. 5) They become more willing to take initiative and come out with cost-saving suggestions and growth-oriented ideas. Ways of participation
Board level participation Ownership participation Complete control Staff or work councils Joint councils and committees Collective Bargaining Job enlargement and enrichment Suggestion schemes Quality circles Empowered teams TQM (Total Quality Management) Financial participation Grievance handling
A grievance is a sign of employees discontent with job and its nature. The employee has got certain aspirations and expectations which he thinks must be fulfilled by the organization where he is working. When the organization fails to satisfy the employee needs, he develops a feeling of discontent or dissatisfaction. Thus, grievance is caused due to the difference between the employee expectation and management practices. Need for a Grievance Procedure Most grievances seriously disturb the employees. This may affect their morale, productivity and their willingness to cooperate with the organization. If an explosive situation develops, this can be promptly attended to if a grievance handling procedure is already in existence. It is not possible that all the complaints of the employees would be settled by first-time supervisors, for these supervisors may not have had a proper training for the purpose, and they may lack authority. Moreover, there may be personality conflicts and other causes as well. It serves as a check on the arbitrary actions of the management because supervisors know that employees are likely to see to it that their protest does reach the higher management.
The Causes of Grievances Demands for individual wage adjustments, Complaints about the incentive systems Complaints about the job classifications, Complaints against a particular foreman Complaints concerning disciplinary measures and procedures. Objections to the general methods of supervision, Loose calculation and interpretation of seniority rules, and unsatisfactory interpretation of agreements. Promotions Disciplinary discharge or lay-off, Transfer for another department or another shift, Inadequacy of safety and health services / devices Non-availability of material in time Violation of contracts relating to collective bargaining Improper job assignment, and
EFFECTS OF GRIEVANCES 1. On production: Low quality of production, Low quality of production and productivity, Increase in the wastage of material, spoilage/leakage of machinery, Increase in the cost of production per unit. 2. On employees: Increase in the rate of absenteeism and turnover reduces the level of commitment, sincerity and punctuality, Increases the incidence of accidents, and reduces the level of employee morale. 3. On managers: Strains the superior-subordinate relations, Increases the degree of supervision, control and follow up, Increases in disciplinary action cases, Increases in unrest and, thereby, machinery to maintain industrial peace. Objective of a Grievance-Handling Procedure To enable the employees to air his/her grievance To clarify the nature of the grievance To investigate the reasons for dissatisfaction To obtain, where possible, a speedy resolution to the problem To take appropriate actions and ensure that promises are kept. To inform the employee of his or her right to take the grievance to next stage of the procedure, in the event of an unsuccessful resolution.
KEY FEATURES OF A GOOD GRIEVANCE-HANDLING PROCEDURE Fairness: Fairness is needed not only to be just but also to keep the procedure viable, for if employees develop the belief that the procedure is only a sham, then its value will be lost, and the other means sought to deal with the grievances. This also involves following the principles of natural justice, as in the case of a disciplinary procedure. Facilities for Representation: Representation, e.g. by a shop steward, can be of help to the individual employee who lacks the confidence or experience to take on the management single-handedly. However, there is also the risk that the presence of the representative produces a defensive management attitude, affected by a number of other issues on which the manager and shop steward may be at loggerheads. Procedural Steps: Steps should be limited to three. There no value in having more just because there are more levels in management hierarchy. This will only lengthen the time taken to deal with matters and will soon bring the procedure into disrepute. Promptness: Promptness is needed to avoid the bitterness and frustration that can come from delay. When an employee goes into procedure, it is like pulling the communication cord in the train. The action is not taken lightly and it is in anticipation of a swift resolution. Furthermore, the manager whose decision is being questioned will have a difficult time until the matter is settled.
Module VI: Emerging Trends in HRM Overview of Human Resource Information System (HRIS), IHRM Practices, Cross- Cultural and Diversity Management, Work-life integration HRIS
A Human Resource Management System (HRMS) or Human Resource Information System (HRIS), refers to the systems and processes at the intersection between human resource management (HRM) and information technology. It merges HRM as a discipline and in particular its basic HR activities and processes with the information technology field, whereas the programming of data processing systems evolved into standardized routines and packages of enterprise resource planning (ERP) software. On the whole, these ERP systems have their origin on software that integrates information from different applications into one universal database. The linkage of its financial and human resource modules through one database is the most important distinction to the individually and proprietary developed predecessors, which makes this software application both rigid and flexible. Human Resource Management Systems encompass: Payroll, Time and Attendance, Appraisal performance, Benefits Administration, HR management Information system, Recruiting/Learning Management # Training System, Performance Record, Employee Self-Service, Scheduling, Absence Management. IHRM Practices An international business must procure, motivate, retain and effectively utilize services of people both at the corporate office and at the foreign plants. The process of procuring, allocation and effectively utilizing human resources in an international business is called International Human Resources Management. The 3 broad activities if IHRM, namely procurement, allocation, and utilizing cover all the 6 activities of domestic HRM. They are HR planning, employee hiring,, training and development, remuneration, performance management and industrial relations. The 3 national categories involved in IHRM activities are host country where a subsidiary may be located, the home country where the company has its head quarters and other countries that may be the source of labour or finance. Basic steps in IHRM: HRP R&C T&D Performance management Remuneration - Repatriation Employee Relations Multicultural management. Cross- Cultural and Diversity Management It is about culture. Basically human races came with different background. "Cultural background". The way of doing things in one culture may not be the way in other culture. What is good in one culture may be bad in other culture. Some time the activities are all the same in two different cultures, but two different meanings, two different interpretations. When person from one cultural background, meet, interact with, understand and deal with person from other cultural background. That is cross-cultural management. Some people are in favor of the world is converging; all things are going to be same. They are right. Some people are arguing still the world has divergence. They are also right. Dont fight over this issue. We are smart people. learn how to manage both the convergence and divergence. That is the key to success. I will give you examples. In USA, it is performance that counts. Based on that you will be give higher assignments and promotions will be given. In Indian companies, performance is not the main criteria. It is "Organizational compatibility" that counts. That is the employee "fit" in to the organization that counts. India is a High context society. The "fit" in to the organization has to be interpreted in Indian way.
The business has different interpretation. IN USA, doing business means creating organizations wealth. In India doing business means "Individual wealth". On recruitment, In USA it is the process of selection, In India it is the process of rejection. And the difference goes on... Certainly, the differences are innumerable. Increasing an individual's or an organization's cultural intelligence is not an easy task. Diversity management "Diversity Management" is a strategy to promote the perception, acknowledgement and implementation of diversity in organisations and institutions. Human beings differ in age, social and national background, gender, sexual orientation, physical and mental ability as well as religious belief and worldview. (for further differentiations see "Layers of Diversity") Diversity is a source of creativity and innovation that can provide the potential for future development and competitive advantage. Diversity and its potential is essential for the University as it satisfies the mandate of an institution of higher education to offer a broad range of teaching and learning opportunities to students and staff alike.
Ensuring that diversity is made visible and fruitful remains a central concern of diversity management. In doing so, individual and structural representation of perception and appreciation may be reflected upon. This means that social, institutional as well as personal views and expectations are questioned: How do we provide for and/or perceive physically disabled people? How does our society treat homosexual, bisexual and transsexual people? Do women have equal career opportunities at the University of Vienna? Although schemata of perception and assessment make us feel secure by providing a structured view of the world, they may also cause discrimination if they remain rigid. Relying on a negative and rigidly stereotyped view of a person or group of persons may deprive this (group of) person(s) of equal opportunities. It may block their access to resources such as knowledge, money or decisionmaking power. Diversity management aims at reducing discrimination and promoting equal opportunities. Work-life integration Worklife balance is a broad concept including proper prioritizing between "work" (career and ambition) on the one hand and "life" (Health, pleasure, leisure, family and spiritual development) on the other. Related, though broader, terms include "lifestyle balance" and "life balance". Goals & Objectives The objectives of the Work-Life Integration project are: To expand our current conceptual framework of work-life integration for family members who have children and adolescents with emotional disorders, by including variables (such as family structure and caregiver strain) based on new empirical evidence. To learn from family members the ways in which they have worked with HR professionals to assure their ability to participate in employment. To conduct research that answers specific questions about HR professional practice regarding work-life integration, the reduction of stigma in the workplace, and the provision of resources and benefits needed by culturally-diverse families to optimally engage in employment.
To prepare and pilot-test professional development and technical assistance materials for use with human resources and work-life professionals based on the research findings of this project and prior studies of our research team. To provide employers with capacity-building strategies that they can use to promote work-life integration for employees, to design effective policies and benefits packages, and to attract and retain a more diverse work force. To compile resources and provide technical assistance materials for family members and family organizations based on our findings. To disseminate these materials to family members, family organizations, human resources professionals, work-life specialists, and employers.
Explore work-life issues for families caring for children receiving mental health services through a secondary analysis of data from the National Evaluation of the Comprehensive Community Mental Health Services for Children and their Families Program (CCMHS). Explore the perspectives of both human resources professionals and parents on combining work and caring responsibilities and workplace supports when employees have children with emotional and behavioral challenges. Conduct a web-based survey of members of World at Work, a large national professional membership organization for human resource and allied professionals. Design, develop a research-based training intervention for human resource and allied professionals on work-life issues for this group of employees. Conduct a pilot implementation and evaluation. Disseminate project finding to family members, family organizations, and employers.