A Case Study on Training and Development

 

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BRIEF SUMMARY OF PROJECT

 

CHAPTER-1

INTRODUCTION

HDFC Standard Life is one of India’s leading private life insurance companies, which offers a range of individual and group insurance solutions. It is a joint venture between Housing

Development Finance(HDFC), India’s leading housing finance institution and Standard Life plc, a leading provider of financial services in the United Kingdom.   HDFC Standard Life’s product portfolio comprises solutions, which meet various customer needs such as Protection, Pension, Savings, Investment, and Health. Customers have the added advantage of customizing their Plans, by adding optional benefits called riders, at a nominal price. The company currently has 25 retail and 4 group products in its portfolio, along with five optional rider benefits catering to the savings, investment, protection and retirement needs of customers. HDFC Standard Life continues to have one of the widest reaches among new insurance companies through a network of 595 offices serving over 720 cities and towns across the country. The company has also increased its depth in existing markets with a strong base of more than 207,000 Financial Consultants.

 

1.1  HDFC Limited

         HDFC Limited has set benchmarks for the Indian housing finance industry. Recognition for the service to the sector has come from several national and international entities including the World Bank that has lauded HDFC as a model housing finance company for the developing countries.    HDFC has undertaken a lot of consultancies abroad assisting different countries including Egypt, Maldives, and Bangladesh in the setting up of housing finance companies. Customer Service and satisfaction has been the main stay of the organization. HDFC Limited has assisted more than 3.3 million families own a home, since its inception in 1977 across 2400 cities and towns through its network of over 250 offices. It has international offices in Dubai, London and Singapore with service associates in Saudi Arabia, Qatar, Kuwait and Oman to assist NRIs and PIOs to own a home back in India. 

 

1.2  Business Objectives          

  The primary objective of HDFC is to enhance residential housing stock  in the country through

 

the provision of housing finance in a systematic and professional manner, and to promote home

 

ownership. Another objective is to increase the flow of resources to the housing sector by

 

integrating the housing finance sector with the overall domestic financial markets. 

 

 

1.3 Organizational Goals

 

HDFC's main goals are to

 

a) Develop close relationships with individual households,

b) Maintain its position as the premier housing finance

       institution in the country,

c) Transform ideas into viable and creative solutions,

d) Provide consistently high returns to shareholders, and

e) To grow through diversification by leveraging off the existing client base.

 

1.4 Standard Life Group

    The Standard Life Group has been looking after the financial needs of customers for over 180 years. It currently has a customer base of around 7 million people who rely on the company for their insurance, pension, investment, banking and health-care needs. Its investment manager currently administers £125 billion in assets. It is a leading pensions provider in the UK, and rated by Standard & Poor as ‘strong’ with a rating of A+  and as ‘good’ with a rating of A1 by Standard Life was awarded the ‘Best Pension Provider’ in 2004, 2005 and 2006 at the Money Marketing Awards, and it was voted a 5 star life and pension provider at the Financial Adviser Service Awards for the last 10 years running. The ‘5 Star’ accolade has also been awarded to Standard Life Investments for the last 10 years, and to Standard Life Bank since its inception in 1998. Standard Life Bank was awarded the ‘Best Flexible Mortgage Lender’ at the Mortgage Magazine Awards in 2006.


AHUMAN RESOURCE MANAGEMENTARE IVH SH R AV SOU ORE IN D C, H IM CSOURAV SHIVHARE {CHIMC, INDORE}
Why Human Factor is More Important?• • • • • • • Japan had emerged as wonder Nation of last century 5 ‘M’ Assets Akio Morita - Employees are the most valuable part of Co. Organisations exist for the people HR is most complex and unpredictable in its behavior This is the only resource which appreciates in its value with the passage of time. Human resources are unique in character and are heterogeneous
SOURAV SHIVHARE {CHIMC, INDORE}
HRM vis-à-vis CultureThe culture of an organisation is made up of traditions, values, habits and patterns of relationships at work • Corporate Mission/philosophy and strategic plan gives birth to culture • • HR Planning defines culture Recruitment and selection process locate the barriers of the culture • Training & Development helps in instilling the cultureSOURAV SHIVHARE {CHIMC, INDORE}
HRM vis-à-vis Culture ….• • • Goal Setting and appraisals make the culture effective Reward Management reinforces the culture Succession Planning helps in maintaining the culture Global Focus … Integrate HR functions with Industrial Relations to achieve excellence & develop organisational citizenship
SOURAV SHIVHARE {CHIMC, INDORE}
Concept of HRM and DefiningAccording to NIPM – HRM is that part of Management which is concerned with – people at work and their relationships within Organisation. It seeks to bring together people, enabling each to make his own best contribution to success both as an individual and as a member of a working group.SOURAV SHIVHARE {CHIMC, INDORE}
Defining HRMHRM is – Planning, Organising, Directing & Controlling ofProcurement, Development, Compensation, Integration, Maintenance & Separation Of Human Resources with the aim that Individual, Organisational & Social Objectives are accomplished (Flippo)
SOURAV SHIVHARE {CHIMC, INDORE}
Objectives and scope of HRM• To provide well trained & well motivated employees • To utilise skills & knowledge of employees effectively and efficiently • To enhance job satisfaction of employees • To maintain high morale and better human relations • To provide opportunities for training and advancement • To develop and maintain a quality of work life • To establish and maintain productive self-respecting working relationships • To satisfy individual needs & group goalsSOURAV SHIVHARE {CHIMC, INDORE}
Features of HRM• Comprehensive Function • People-Oriented • Action Oriented • Individual Oriented • Development Oriented • Pervasive Function • Continuous FunctionSOURAV SHIVHARE {CHIMC, INDORE}
Cont..• Interdisciplinary • Nervous system. • Young discipline • Future-oriented • Challenging Function • Science as well an Art • Staff function
SOURAV SHIVHARE {CHIMC, INDORE}
HRM as Major SystemAdministrative Sub System Development Sub System Preventive Sub System
SOURAV SHIVHARE {CHIMC, INDORE}
HRM as Major System….
Administrative Sub-System1. Recruitment 2. Induction 3. Placement 4. Working Conditions 5. Wages & Salary AdministrationSOURAV SHIVHARE {CHIMC, INDORE}
HRM as Major System….
Developmental Sub-System 1. Manpower Planning 2. Performance Appraisal 3. Staff Welfare 4. Training & Development 5. Career Planning 6. Organisational DevelopmentSOURAV SHIVHARE {CHIMC, INDORE}
HRM as Major System….
Preventive Sub-System1. Grievance Redressal 2. Discipline 3. Industrial Relations
SOURAV SHIVHARE {CHIMC, INDORE}
EVOLOUTION OF HRM:( Indian Context)
Beginning of 20th Century - Jobbers 1931 - Labour Welfare Officer After Independence – Personnel Manger Shifted concern for welfare to higher efficiency 1970 - HRM 1980 - New Technologies HRM Challenges & HRD 1990 - Human Values & Productivity Human Capital SOURAV SHIVHARE {CHIMC, INDORE}
Personnel to HRMPERSONNEL • Part of HRM • Coping Role – Reactive • Maintenance & Administrative Function • Routine
HRM • Larger System • Proactive
• Plus Developmental Function • Strategic
SOURAV SHIVHARE {CHIMC, INDORE}
Personnel to HRM…PERSONNELHRM
• Inverted Orientation • Employees treated as Nuts & Bolts which can be replaced
• Integrated • Treated as part of the system: Mutual Respect, Trust, Goals, Rewards Responsibilities • Procedures designed to reduce human wastages
• Procedures designed to achieve maximum efficiency
SOURAV SHIVHARE {CHIMC, INDORE}
HRM – ASTD MODEL1. 2. 3. 4. 5. 6. 7. 8. 9. H.R. Planning Personnel Research & Information System Selection & Staffing Training & Development Compensation/Benefits Organisation & Development Organisation/Job Design Employee Assistance Union/Labour SHIVHARE {CHIMC, INDORE} SOURAV Relations
HRM – ASTD MODEL …..
HR AREAS : OUTPUT
• • •
QWL (Quality of Work Life) Productivity Readiness for ChangeSOURAV SHIVHARE {CHIMC, INDORE}
Functions of HRM• I. Managerial Functions: • a. Planning • b. Organizing • C. Directing • d. Controlling.• II. Operative Functions: • a. Procurement • b. Development • c. Compensation • d. Integration • e. Maintenance • f. Separation
SOURAV SHIVHARE {CHIMC, INDORE}
Roles & Responsibilities of HRM1. As a Specialist Facilitator Should be considered as a source of help As an Information Source Record Keeper & Researcher As a Change Agent Policy Announcements As a Controller Partner in Top Management As a Liaison Man Cross functional effectiveness As a House Keeper As a Fire-Fighter Shock Absorber Trouble Shooter
2. 3. 4. 5. 6. 7.
SOURAV SHIVHARE {CHIMC, INDORE}
Strategic Role of HR1. Recruiting experienced, talented persons well in advance from campus & market both 2. Improved planning of assignments 3. Improved analysis & control of HR related costs 4. Stability & Mobility of workforce employed 5. Organisational Effectiveness 6. Untapped Potential of HR
SOURAV SHIVHARE {CHIMC, INDORE}
Organisation Structure of HR Dept.. Chief Manager, HREmploy HRD ment CompenIR sation Employee Comm welfare on Securi ty Centr al Esta.
M
O O
Plannin OrientatiJob Advisor Welfare g on Evalua Recruit Train ment ing Salary Labour Counse Law ling
O
Placem Apprais Fringe ent al benef.
Comm.Dev HR elopment Audit
SOURAV SHIVHARE {CHIMC, INDORE}
HR Deptt. In Line OrganisationHuman Resource Manager
Employment Training Officer Officer
Wage & Salary Officer
Welfare Officer
Clerk
Clerk
Clerk
Clerk
Unity of Command:: Every Employee is accountable to one superior SOURAV SHIVHARE {CHIMC, INDORE}
HR Deptt. In Functional OrganisationHuman Resource Manager
Employment Training Officer Officer
Wage & Salary Officer
Welfare Officer
Clerk
Clerk
Clerk
Clerk
Every employee reports to several functional heads. Expert Advice is available; SOURAV SHIVHARE {CHIMC, INDORE} Line of Authority not clear. Co-ordination & control hampered.
HR Deptt. In Line & Staff OrganisationHuman Resource Manager
Employment Training Officer Officer -------
Wage & Salary Officer
Welfare Officer
Clerk
Clerk
Clerk
Clerk
Line Relationship ____________ SOURAV SHIVHARE {CHIMC, INDORE} Staff Relationship --------------------
HR Deptt. (Divisional Structure)Human Resource Manager
Human Resource Officer (Northern Division)
Human Resource Officer (Southern Division)
Human Resource Officer (Eastern Division)
Human Resource Officer (Western Division)
• Performance of divisions can be compared SOURAV SHIVHARE {CHIMC, INDORE} •
Matrix Structure
General Manager Production Project A Manager Project B ManagerSOURAV SHIVHARE {CHIMC, INDORE}
Finance
Human Resource
Recruitment• What is Recruitment? • What is Procurement? • The Difference Between Recruitment and Selection and Placement. • Why Recruitment is more important for an organization?
• How not to recruit employees in the organization? • General Factors affecting Recruitment: SOURAV SHIVHARE {CHIMC, INDORE}
RECRUITMENT• It is the process of attracting the potential employees of the organisation. • It is a positive process • The purpose is to have right kind of people, who meet the criteria laid down in job specification.SOURAV SHIVHARE {CHIMC, INDORE}
OBJECTIVES OF Recruitment• To meet the most ideal source of recruitment • Should be cost effective • Fair & Accurate information to potential employees • Should conform to changing needs of the organisation.SOURAV SHIVHARE {CHIMC, INDORE}
Factors affecting Recruitment• Size of the Orgn. • Employment conditions around • Working Conditions • Salary & Perks offered • Stage of the Orgn.SOURAV SHIVHARE {CHIMC, INDORE}
The sources of Recruitment• INTERNAL SOURCES• EXTERNAL SOURCES• 1. Press Advertisements • 2. Educational Institutions • 3.Placement Agencies • 4.Employment Exchanges • 5.Labour Contractors • 6.Unsolicited Applicants • 7.Recommendations • 8.Recruitment at Factory gateSOURAV SHIVHARE {CHIMC, INDORE}
• 1. Transfers • 2. Promotions
• 9. Online
Techniques of Recruitment1. Direct: Employee Contacts, Manned Exhibits, Waiting Lists, Scouting (Traveling recruiters) 2. Indirect: Advertisement in Newspapers, journals, radio, television: When recruiters want to reach large target group 3. Third Party: Various recruitment agencies, employment exchanges, trade unions, labour contractors. 4 Internet: 25% of Net users search for jobs on InternetSOURAV SHIVHARE {CHIMC, INDORE}
Recruitment Process• Steps in Recruitment Process:• 1. Requisitions for recruitment from other department • 2. Locating and Developing the sources of Required number and type of employees • 3. Identifying the prospective employees with required characteristics • 4. Communicating the information about the organization, the job and the terms of conditions of service. • 5. Encourage the identified candidates to apply for jobs In the organization. • 6. Evaluating the effectiveness of recruitment process.
SOURAV SHIVHARE {CHIMC, INDORE}
What is Selection?• • • • • Selection is the process of choosing the most suitable persons out of all the applicants. Selection is a process of matching the qualifications of applicants with the job requirements. It is the process of weeding out unsuitable candidates and finally identify the most suitable candidate. The purpose of Selection is to pick up the right person for every job. Selection is negative process as it rejects a large number of unsuitable applicants from the pool.SOURAV SHIVHARE {CHIMC, INDORE}
Selection Process…• 1. Initial Screening • 2. Application Blank • 3. Selection Test • 4. Employment Interview • 5.Medical Examination • 6.Reference Checks • 7. Final ApprovalSOURAV SHIVHARE {CHIMC, INDORE}
Application Blank1. Identifying Information 2. Personal Information 3. Physical Characteristics 4. Family Background 5. Education: Academic, Technical, Professional 6. Experience 7. References 8. Miscellaneous – Extra Curricular, hobbies, membership of professional bodies etc.SOURAV SHIVHARE {CHIMC, INDORE}
Methods of Selection• (a) Tests: • 1. Aptitude Tests: – Mental or Intelligence test – Mechanical test • 2. Achievement Tests: - Job Knowledge test - Work sample test
• 3. Personality Tests:
– Objective test – Projective test – Situation test• 4. Interest Tests:• Continued…
SOURAV SHIVHARE {CHIMC, INDORE}
Methods of Selection (continued)(b) Interviews 1. Informal Interview 2. Formal Interview 3. Structured Interview 4. Non-Directed or Unstructured Interview 5. Depth Interview 6. Group Interview 7. Stress InterviewSOURAV 8. Panel or Board SHIVHARE {CHIMC, INDORE} Interview
Induction/Orientation • Definition: “Orientation or induction is the process of receiving and welcoming an employee when he first joins a company and giving in the basic information he needs to settle down quickly and happily and start work”.SOURAV SHIVHARE {CHIMC, INDORE}
Objectives of an Orientation/Induction program• To help the new comer to overcome his shyness • To build new employee’s confidence • To develop the new entrants a sense of belonging and loyalty • To foster a close and cordial relationship… • To prevent false impression and negative attitude of the new employees • To give the new comers necessary information like canteen, locker room. Rest periods and leave rules etc…SOURAV SHIVHARE {CHIMC, INDORE}
Advantages of an Orientation/Induction program• It helps to build two way communication • It facilitates informal relations and team work • Induction is helpful in supplying information about the organisation, job, and welfare of employees • Proper Induction will reduce employees grievances, absenteeism and labour turnover • Induction helps to develop good public relations and improve the overall morale of employees • An Induction programme proves that the company is taking a sincere interest in getting him off to a good startSOURAV SHIVHARE {CHIMC, INDORE}
Contents of an Induction programme:
• • • • • • ••
Brief history and operations of the company. Products and services of the company. The company’s organization structure. Location of departments and employee facilities. Policies and procedures of the company. Rules, regulations and daily work routines. Grievance procedures.SOURAV SHIVHARE {CHIMC, INDORE}
Contents of an Induction programme:……….
• • • • • • •
Safety measures Standing orders and disciplinary procedures Terms and conditions of service including wages, working hours, over time, holidays etc. Suggestion schemes Benefits and services for employees. Opportunities for training Career Path, Promotion,{CHIMC, INDORE} etc. Transfer SOURAV SHIVHARE
Induction Program:3 STEPS: 1. General Orientation 2. Specific Orientation 3. Follow up Orientation
SOURAV SHIVHARE {CHIMC, INDORE}
PlacementIt is the process of assigning a specific job to each of selected candidates Personality – job fit Proper placement helps to : • Improve Morale • Reduce turnover • Reduce Absenteeism • Job Satisfaction • Psychological adjustmentSOURAV SHIVHARE {CHIMC, INDORE}
SocialisationIt is the process of adaptation. It is the process by which new employees learn and inculcate norms and values of an organisation Induction is the part of Socialisation Induction is confined to new recruits, whereas Socialisation also covers cases of Transfers and Promotion
SOURAV SHIVHARE {CHIMC, INDORE}
Human Resource PoliciesEssentials of sound HR Policy : 1. In writing 2. Clarity 3. Contributing to Organisational Objectives 4. Stable & Long Lasting 5. Flexible 6. Interest of all 7. Just, fair & equitable 8. Sense of Security 9. Delegation of Authority 10. Teamwork & Loyalty 11. Prompt Decision MakingSOURAV SHIVHARE {CHIMC, INDORE}
Human Resource PoliciesTYPES: Source 1. Originated 2.Appealed Scope 1. General 1. Written 2. Specific Form 2. ImpliedSOURAV SHIVHARE {CHIMC, INDORE}
3.Imposed
Human Resource PoliciesFORMULATION : 1. Need Identification 2. Collecting Information 3. Examining 4. Approval 5. Communicating 6. EvaluatingSOURAV SHIVHARE {CHIMC, INDORE}
PROMOTION
• Advancement to higher post • Upward Movement in hierarchy • More responsibilities • Higher Status • Better Salary • DRY promotionSOURAV SHIVHARE {CHIMC, INDORE}
PROMOTION POLICY
• Every Organisation should have well established Promotion Policy. • In writing and communicated to all • Uniform in all the Departments. Ratio of Internal promotion & external promotion should be the same • Due weightage to seniority, merit & future potential.SOURAV SHIVHARE {CHIMC, INDORE}
PROMOTION POLICY
• Fixation of Responsibility Centre to take decisions on promotions. • Provision for appeal and review • Counseling to rejected candidates • Fair; impartial • ConsistentSOURAV SHIVHARE {CHIMC, INDORE}
BASES OF PROMOTION• Seniority • Merit • Merit-cum-seniority
SOURAV SHIVHARE {CHIMC, INDORE}
TransferA transfer refers to a horizontal or lateral movement of an employee from one job to another in the same organization without any significant changes in status and pay. It has been defined as “ lateral shift causing movement of individuals from one position to another usually without involving any marked change in duties, responsibilities, skills needed or compensation”
SOURAV SHIVHARE {CHIMC, INDORE}
Need and purpose of Transfers • 1. To meet organizational needs • 2. To satisfy employee Needs • 3. To better utilize Employees • 4. To make the Employee More versatile • 5. To adjust the work force • 6. To Punish Employees
SOURAV SHIVHARE {CHIMC, INDORE}
Types of Transfers
• 1. Production Transfer• 2. Versatility Transfer • 4. Remedial Transfer • 5. Shift Transfer
SOURAV SHIVHARE {CHIMC, INDORE}
• Demotion implies the assignment of an employee to a job of lower rank with lower pay. It refers to downward movement of an employee in the organizational hierarchy with lower status and lower salary. • It is downgrading process and a serious type of Punishment, hence it should be used tactfully and only when it is absolutely necessary.SOURAV SHIVHARE {CHIMC, INDORE}
Demotion
Need for Demotion: Why and When
• 1. Adverse Business Conditions • 2. Incompetence • 3. Technological Change • 4. Disciplinary Measure.SOURAV SHIVHARE {CHIMC, INDORE}
HUMAN RESOURCE PLANNINGASSIGNMENT: What do you understand by HR Planning? Discuss the various steps involved in effective HR Planning.
SOURAV SHIVHARE {CHIMC, INDORE}
HUMAN RESOURCE PLANNING• Definition: It is the process by which management determines how an organisation should move from its current manpower position to its desired manpower position. Through it, management strives to have the right number and the right kind of people at the right places, at the right time, doing things which result in both the organisation, and the individual receiving, maximum longrange benefit” 2. HRP is concerned with the flow of people into, through & out of an organisation.SOURAV SHIVHARE {CHIMC, INDORE}
1. Comprehensive Definition:
Objectives of HRP• To ensure optimum use of existing HR • To forecast future requirements for HR • To provide control measures • To link HRP with Organisational Planning
• To estimate cost of HR and Housing needs of Employees • To meet the needs of Expansion and Diversification programmes • To assess shortage and surplus of HR
• To determine levels of Recruitment and SOURAV SHIVHARE {CHIMC, INDORE} Training
Need and Importance of HRP• To carry on its work and to achieve its objectives • HRP identifies gaps • There is need to replace employees • HRP facilitates expansion and growth • HRP helpful in effective utilization of HR and Technology
• HRP is useful in anticipating Cost of HR which facilitates budgeting easier • HRP facilitates Career and succession planning • HRP helps in planning for physical facilities like canteen staff quarters etc
SOURAV SHIVHARE {CHIMC, INDORE}
Why HRP gained so much focus in recent times…• Employment situation • Lead time • Technological Changes • Organizational Changes • Demographic Changes
• Hiring costs • Increased Mobility • Shortage of Skills • Legislative Controls • Pressure Groups
SOURAV SHIVHARE {CHIMC, INDORE}
• Systems Concepts
Process of HRP• 1. Analyzing Organizational Plans • 2. Forecasting Demand for HR • 3. Forecasting supply of HR • 4. Estimating Manpower Gaps • 5. Action Planning • 6. Monitoring and ControlSOURAV SHIVHARE {CHIMC, INDORE}
Process of HRPI. Collect Information: (A) From External Environment: 1. 2. 3. 4. 5. 6. 1. 2. 3. 4. Economy – General & Specific Technology Competition Labour Market Demographic & Social Trends Govt. Regulations Strategy Business Plans Current HR RateSOURAV SHIVHARE {CHIMC, INDORE} of Turnover & Mobility
(B) From Inside the Organization:
II.
Process of HRP …..(A) Short & Long Run
Forecast Demand for Human Resources:
(B) Aggregate or Individual Positions III. Forecast Supply of Human Resources: (A) Internal Supply (B) External Supply IV. Plan & Conduct Needed Programs (A) (B) (C) (D) V. Increase or Reduce Work Force Size Change Skill Mix – Composition Develop Managerial Succession Plan Develop Career Plans
Feedback on Planning Process Was the Forecast accurate? Did the programs meet the needs?SOURAV SHIVHARE {CHIMC, INDORE}
Job Design• It is the process of deciding contents of a task in terms of duties & responsibilities • Methods/techniques to be used in carrying out task Job Design integrates – Work Content Rewards Qualifications required • Employee Needs Organisation Needs
SOURAV SHIVHARE {CHIMC, INDORE}
Job Design …..Job Characterstics : 1. Skill Variety 2. Task Identity 3. Task Significance 4. Autonomy 5. FeedbackSOURAV SHIVHARE {CHIMC, INDORE}
Job Design ……Techniques Of Job DesignJob Rotation Job Enlargement Job Enrichment
SOURAV SHIVHARE {CHIMC, INDORE}
1. Job RotationShifting from one job to another. Level does not change Benefits: Individual • Broadens the knowledge & skills. • Variety of work • Improves self image Negative: Not much impact on employee enthusiasm and efficiency
SOURAV SHIVHARE {CHIMC, INDORE}
2.. Job Enlargement:
• Expanding the Number of Tasks or Duties • Horizontal expansion • One set of task is added to another • It is resisted by employees
SOURAV SHIVHARE {CHIMC, INDORE}
3. Job Enrichment• Vertical expansion • More decision taking • Empowerment Positive: Increased motivation Job satisfaction Reduced absenteeism Self esteem, Intrinsic reward Negative: If there is no urge of employee to take more responsibility • • • If employee is lazy; desired outcome will not be there Increased cost of implementation It is intrinsic reward, but must be supported by extrinsic rewardSOURAV SHIVHARE {CHIMC, INDORE}
• 1.What are the challenges of HR Executives in the present day business scenario?• 2. State essential qualities of Successful HR Manager? • 3. Draw an organizational chart of an MNC known to you and state whether HR function line or Staff function.
Assignments
SOURAV SHIVHARE {CHIMC, INDORE}
Further Readings• 1. Human Resource Management – Dr. C.B. Gupta – Sultan Chand & Sons Pub. • 2. Human Resource Management – S.S. Khanka – S. Chand Pub. • Personnel Management & Industrial Relations – P.C. Tripathi Himalaya Pub.SOURAV SHIVHARE {CHIMC, INDORE}
• Job analysis is a formal and detailed study of jobs • It refers to a scientific and systematic analysis of a job in order to obtain all pertinent facts about the job • It is essentially a process of collecting and analyzing all pertinent data relating to a job
Job Analysis
SOURAV SHIVHARE {CHIMC, INDORE}
Objectives of Job Analysis• • • • • • • • Job design Work Standards Recruitment Selection Training Performance appraisal Job evaluation SafetySOURAV SHIVHARE {CHIMC, INDORE}

Benefits of Job Analysis • 7. Career Path 1. Human Resource Planning planning• 8. Job Design • 9. Job Evaluation • 10 Labour Relation • 11. Employee Counselling • 12. Health and SafetySOURAV SHIVHARE {CHIMC, INDORE}
• 2. Recruitment and Selection • 4. Placement and Orientation • 5. Training and Development • 6. Performance Appraisal
The process of Job Analysis• 1. Organisational Analysis• 5. Understand Job Design
• 2. Organising Job • 6. Collection of Analysis Programme Data • 3. Deciding the uses • 7. Developing a Job of Job Analysis Description Information • 8. Preparing a Job • 4. Selecting Representative Jobs Specification for analysis SHIVHARE {CHIMC, INDORE} SOURAV
Techniques of Job Analysis• 1. Job Performance • 2. Personal Observation • 3. Interview • 4. Questionnaire • 5. Critical Incidents • 6. Log Records
SOURAV SHIVHARE {CHIMC, INDORE}
Contents of Job DescriptionIt is an organised, factual statement of the duties & responsibilities of a specific Job. It tells what is to be done, how it is done & why • • • • • • • Job Identification Job Summary Job Duties Supervision Relationship with other jobs Machine, Tools & Equipments Working ConditionsSOURAV SHIVHARE {CHIMC, INDORE}
Contents of Job SpecificationIt is a statement of minimum acceptable human qualities necessary to perform a job. It is an important tool in the selection process & evaluation. • • • • • Educational Requirement Experience Specific knowledge/Skill Requirement Personality Requirement ResponsibilitySOURAV SHIVHARE {CHIMC, INDORE}
Difference between Job Description and Job Specification• Job Description is a functional description of what the job entails. And define the purpose and scope of a job. It is a written record it contains title, location, duties, responsibilities, working conditions, hazards and relationship with other jobs.
• Job specification is a statement of the minimum acceptable human qualities required for the proper performance of a job. • It includes physical, mental, social, psychological and behavioral characteristics of a person
SOURAV SHIVHARE {CHIMC, INDORE}
ASSIGNMENTDesign an attractive advertisement clipping for the position, you want to achieve in life (Both Job Description, Job Specification)SOURAV SHIVHARE {CHIMC, INDORE}
• According to BIM, Job evaluation is “the process of analysis and assessment of jobs to ascertain reliably their relative worth using the assessment as the basis for a balanced wage structure” • Job evaluation begins with job analysis and ends up with the classification of jobs according to their worth. A job cannot be evaluated unless and until it is analyzed.SOURAV SHIVHARE {CHIMC, INDORE}
Job Evaluation
Objectives of Job evaluation• 1.To Determine equitable wage differentials between different jobs in the organization
• 2. To eliminate wage inequities • 3.To develop a consistent wage policy • 4. To provide a framework for periodic review and revision of wages • 5.To provide a basis for wage negotiations • 6. To enable management to gauge and control the payroll costs • 7. To minimize wage descriptions on the basis of age, sex, caste, region, religion , creed etc
SOURAV SHIVHARE {CHIMC, INDORE}
Methods of Job Evaluation• Job Evaluation can be classified in to two categories • 1. Non-quantitative methods: – a. Ranking or Job Comparison – b. Grading or Job Classification • 2. Quantitative methods: – a. Point Rating – B. Factor Comparison
SOURAV SHIVHARE {CHIMC, INDORE}
Job Evaluation
CONCLUDING POINTS: 1. Job Evaluation is a systematic method that gives accurate & equitable results. 2. Regional & Environmental Factors should be taken into consideration. 3. J.E. is the largest area, where differences arise. 4. Need of acceptance and understanding on the part of Managers & Union Members/employees 5. Constant check of job descriptions and review is required. 6. Grievance Committee should be set up to deal with Job Evaluation & Wage Structure SOURAV SHIVHARE {CHIMC, INDORE} grievances.
Employer Investment on People• A country can develop only when its human resources are developed through health, nutrition, education, training and research. At the Organisational level, employee training and executive development are main areas of human resource development. • The subtle differences between Training, Development and EducationSOURAV SHIVHARE {CHIMC, INDORE}
Why Training is needed?• To familiarize the employee with the company’s culture • To increase the employee’s quantity and quality of output • To enable the employee to do new jobs and prevent his old skills become obsolete • To prepare the employee for promotion to higher jobs • To reduce supervision, wastage and accidents • To build second line workers
SOURAV SHIVHARE {CHIMC, INDORE}
Importance of Training• 1. Higher productivity • 2. Better quality of work • 3. Less learning period • 4. Cost Reduction • 5. Reduced supervision • 6. Low accident rate • 7. High morale • 8. Personal GrowthSOURAV SHIVHARE {CHIMC, INDORE}
Benefits of Training• 1. Self Confidence • 2. Higher Earnings • 3. Safety • 4. Adaptability • 5. Promotion • 6. New SkillsSOURAV SHIVHARE {CHIMC, INDORE}
Determining Training NeedsGap between Existing & Required Competencies 1. Organisational Analysis a) Analysis of Objectives b) Resource Utilization c) Organisation Climate Analysis 2. Environment Scanning 3. Individual Need Analysis 4. Views from Top Management
SOURAV SHIVHARE {CHIMC, INDORE}
Management Development Prog.• One Position to another vertically • Induction at the time of promotion/probation • Developing Managers for handling problems due to increased business, size & complexity of organisation, increased responsibility, decision taking, risk taking • To understand problems of Ecology (Pollution) Ergonomics (Working Environment) Anthropology • HR Problems, Managing IR Problems • Broaden the outlookSOURAV SHIVHARE {CHIMC, INDORE}
TYPES OF TRAINING1. Orientation Training 2. Job Training 3. Safety Training 4. Promotional Training 5. Refresher Training 6. Remedial TrainingSOURAV SHIVHARE {CHIMC, INDORE}
Training & Mgmt. Dev. Program• TRAINING• 1. 2. Mgmt. Dev. Program Top & Middle Management Level Long Term Process Conceptual & Functional Knowledge Future Needs – Proactive Continuous Process Overall perspective Attitudinal Total PersonalitySOURAV SHIVHARE {CHIMC, INDORE}
1 Operating Level
2. Short Term Process 3. Technical Knowledge 4. 5. 6. Existing Job – Reactive One Shot Affair Specific job related
3. 4. 5. 6.
Methods of Training• 1. 2. 3. ON-THE-JOB OJT Demonstration & Examples Apprenticeship 4. 5. 6. • 1. 2. 3. OFF-THE-JOB Lectures Conference Seminar or Team Discussion Case Discussion Role Playing Vestibule Training
SOURAV SHIVHARE {CHIMC, INDORE}
Management Development Programs• ON-THE-JOB• 1. 2. 3. 4. 5. 6. 7. 8. 9. OFF-THE-JOB Case Method Group discussion Management Games In-Basket Exercise Sensitivity Training Transaction Analysis Lectures Simulation Conference
1. Coaching 2. Understudy 3. Project Assignment 4. Junior Board of Management
10. Seminar or Team Discussion
SOURAV SHIVHARE {CHIMC, INDORE}
Designing a Training ProgrammeCommitment of Top Management to employee training. Training Policy: • Company’s intention • To guide the design & implementation • To identify the critical areas • To provide appropriate opportunitiesSOURAV SHIVHARE {CHIMC, INDORE}
Designing a Training ProgrammeA sound Trg. Policy needs to address: • • • • • • • The results expected to be achieved The responsibility for trg. Function The priorities for Trg The type of Training required The time and place of training The payment to trainees The outside agencies to be associatedSOURAV SHIVHARE {CHIMC, INDORE}
Designing a Training Programme1. Responsibility for Training: To be shared amongst Deptts. (a) Top Management (b) HRD © The Line Supervisor (d) The employees 2. Selecting & Motivating the Target Group: 3. Preparing the TrainersSOURAV SHIVHARE {CHIMC, INDORE}
Designing a Training Programme4. Developing Training Package Content Appropriate Method Time Period Budget Detailed Syllabus Support Material; Aids 5. Presentation Trainer tells about why part, Procedure Repetition by trainee 6. Performance Tryout 7 Follow up SOURAV SHIVHARE {CHIMC, INDORE}
• 1. Identifying Training Needs- Present Performance – Desired Performance (Accepted Level of Performance) • 2. Setting Training Objectives and Policy • 3.Designing Training Programme • 4. Conducting the Training • 5. Follow up and EvaluationSOURAV SHIVHARE {CHIMC, INDORE}
Steps in Training Programme
Evaluation of Training• Evaluation Criteria: According to Hamblin (i) Reactions (ii) Learning (iii) Behavior (iv) Results • Methods of Evaluation: 1) Opinion & Judgments of trainers, superiors & Peers 2) Evaluation Form by Trainees 3) Questionnaire 4) Oral & Written Tests 5) Structured Interviews with traineesSOURAV SHIVHARE {CHIMC, INDORE}
Evaluation of Training• • • • • 6. Comparing Trainees Performance – Before & After Training 7. Studying profiles and career development charts of trainees 8. Measuring levels of productivity, wastage, costs, absenteeism and employee turnover after training 9. Trainees comments and reactions during the training period 10. Cost benefitSOURAV SHIVHAREthe training programme. analysis of {CHIMC, INDORE}
Evaluation of Training1. Pre-Training/Post-Training Questionnaire 2. Feedback from participants and their suggestions 3. Feedback from Supervisors after 6 months 4. Feedback from Participants after 6 months 5. Third Party Evaluation 6. Corporate Overall productivity/Organisational EffectivenessSOURAV SHIVHARE {CHIMC, INDORE}
Principles of Training1. Clear Objectives 2. Training Policy 3. Motivation 4. Reinforcement 5. Organised Material 6. Learning Periods 7. Preparing the Instructors 8. Feedback 9. Practice 10. Appropriate Techniques SOURAV SHIVHARE {CHIMC, INDORE}
• 1. State essential qualities of Successful RecruitmentAdvertisement. And also state how will you spell out Job specification and job description briefly in the AD itself. 2. How will you carry out training need analysis for a medium sized organization? 3. If you are HR Executive of an MNC, How will you retain employees in your organization?SOURAV SHIVHARE {CHIMC, INDORE}
Assignments
Separations• Separation of an employee takes place when his service agreement with the organisation come to an end. It may occur due to resignation, death, dismissal and layoff. Following are various forms of separations. • • • • • Retirement Resignation Retrenchment Dismissal Lay offSOURAV SHIVHARE {CHIMC, INDORE}
Turnover• Internal Mobility: When one person shifts from one place to another in the same organisation • Labour Turnover: When a person moves from one Organisation to another • Migration: When a person or a group of people leave one region & settle in another region.
SOURAV SHIVHARE {CHIMC, INDORE}
Reasons for Labour Turnover• Voluntary Retirement • Deaths • Retirement • Disability, Dismissal or Resignation • Lay-off & Retrenchment • Friction with superior staff • Dissatisfaction with working conditions • Low Remuneration • Lack of Promotional Avenues • Expansion with modernisation • Housing, commutation problem etc. SOURAV SHIVHARE {CHIMC, INDORE} • Seasonal Nature of Industries
Higher Rate of Turnover : Consequences Turnover is very high, where HR Policies are not properly planned. 1. Loss in production & quality of product 2. Low Morale of employees 3. Increased cost of recruitment, selection & training 4. Reduces commitment of workers 5. Bad Image of the OrganisationSOURAV SHIVHARE {CHIMC, INDORE}
Separation …. Contd.Retirement Compulsory Premature Voluntary
SOURAV SHIVHARE {CHIMC, INDORE}
Voluntary Retirement• • • • • When VRS can take place ? Golden Handshake Time saving method of trimming excess staff Response to VRS is mixed Good Responses: Hindustan Ciba Geigy, Glaxo India, Siemens TISCO – earmarked 100 crores; Staff cut: 68,000 to 55,000 • • • Total Failure in HLL BHEL – Lukewarm Response Banks:
SOURAV SHIVHARE {CHIMC, INDORE}
VRS in SAIL• Most Successful • It shed 18000 workers • STEPS: Minimum Age Limit Line Managers to identify VRS candidates Attractive compensation plan Secured co-operation from UnionSOURAV SHIVHARE {CHIMC, INDORE}
Lay - Off• • • • 1. 2. 3. Means temporary separation of an employee from the pay-roll of organisation. Lay off may be for a definite period or indefinite period also. The relationship between employer and employee does not come to an end but is merely suspended during the period of lay-off. REASONS for Lay-off: Sect.2(kkk) of Ind. Dispute Act,47: Shortage of coal, power or raw materials Accumulation of stock Break-down of machinery or any other reason
SOURAV SHIVHARE {CHIMC, INDORE}
Lay – Off ….• According to Section 25 (c) – A laid-off worker is entitled to compensation equal to 50% of Basic + DA during laid-off period. Following conditions need to be satisfied : 1. 2. 3. 4. He should not be a Badli or Casual Worker (Daily Wages) His name must be on pay-roll Must have completed > I year of continuous service He is required to present at least once in a day.
(No compensation during strike or slow-down)
SOURAV SHIVHARE {CHIMC, INDORE}
RetrenchmentPermanent termination of an employee for economic reasons. An employee should be retrenched without humiliation and ill feeling Conditions: (Ind. Dispute Act 1947) • • • • One Month notice in writing indicating reasons for retrenchment The worker employed last must be terminated first Provision for preference in future employment to retrenched worker. If workers are > 100, three months notice is required.SOURAV SHIVHARE {CHIMC, INDORE}
Discharge (or Dismissal)It is terminating the services of an employee by way of punishment for misconduct or unsatisfactory performance.
Reasons for Discharge:1. 2. 3. 4. • • • • Excessive Absenteeism False statement of qualification at the time of employment Theft of Co.’s property Serious Misconduct : It includes – Willful violation of rules and regulations Indiscipline Insubordination Dishonesty
SOURAV SHIVHARE {CHIMC, INDORE}
Discharge (or Dismissal)….• • • • • Discharge is a drastic step..It should be resorted with great care. It should be supported by a just and sufficient cause Should be resorted as a last step Employee must be given a chance to explain his conduct Principle of Natural Justice should be followed i.e. punishment should not be out or proportion to the offence.SOURAV SHIVHARE {CHIMC, INDORE}
• Objectives of WASA:
Wage and Salary Administration (WASA)
• 1. To establish a fair and equitable remuneration • 2. To attract competent personnel • 3. To retain the present employees • 4. To improve productivity • 5. To control Costs • 6. To improve union management relations • 7. To improve the public image of the companySOURAV SHIVHARE {CHIMC, INDORE}
Essentials of sound wage and Salary structure • 1. Internal Equity
• 2.External Competitiveness • 3. Built in incentive • 4. Link with productivity • 5. Maintain Real Wages • 6. IncrementsSOURAV SHIVHARE {CHIMC, INDORE}

• 1. Demand for and Supply of labour • 2. Ability to pay • 3. Labour Unions • 4. Cost of Living • 5. Prevailing wage rates • 6. Job Requirements • 7. Productivity • 8. State Regulation
General and Individual • Individual Factors General Factors Factors affecting Wages • 1. Employee’s Age and workExperience • 2. Educational Qualification • 3. Promotion possibilities • 4.Hazards involved in the job • 5. Stability of Employment • 6.Demand for the product • 7.Industry’s role in the economy • 8.Potentials of an employee
SOURAV SHIVHARE {CHIMC, INDORE}
Methods of Wage Payment
• 1. Time Wage system • 2. Piece Wage systemSOURAV SHIVHARE {CHIMC, INDORE}
Comparison betn. Time Wage & Piece Wage System Basis of Comparison 1. Basis of Payment
Time Wage System
Piece Wage System
Time spent on job No. of Units produced Minim. Payment toNo Guarantee of every worker Min. Payment Wages not directly Wages directly linked linked Low High LowSOURAV SHIVHARE {CHIMC, INDORE}
2. Nature of Payment 3. Link with Productivity 5. Cost of Maintenance
4. Quality of work High
Comparison betn. Time Wage & Piece Wage System Basis of Comparison
Time Wage System
Piece Wage System Low Trade Unions dislike it
6. Need for close High supervision
7. Attitude of Trade Union
Trade Unions support it
SOURAV SHIVHARE {CHIMC, INDORE}
Balance or Debt MethodThis method is a combination of Time & Piece System. The Worker is guaranteed a Time Rate with an alternative Piece Rate. If the wages calculated at piece wages exceed the time wages, the worker gets CREDIT; On the other hand, if time wages exceed piece wages, the worker is paid time wages and the deficit is carried forward as DEBIT to be reconserved in futureSOURAV SHIVHARE {CHIMC, INDORE}
E.g.: Time Rate – Rs.250 per week Piece Rate – Rs. 2 per unit The wages of a worker, who produces 150, 100, 125 units respectively in 3 weeks will be
Balance or Debt Method
Week calculated Time Piece as follows: Credit wage Wage (Rs.) First 300 (150 250x2)
Debit (Rs.) Nil 50 Nil
Balance (Rs.) 50 Nil Nil
50 Nil
Second 200 (100 250x 2)
Third
250 (125 250x 2)
SOURAV SHIVHARE {CHIMC, INDORE}
Process of Wage Determination • Job Analysis • Job Evaluation
• • • •
Wage Survey Wage Structure Wage Administration Rules Employee AppraisalSOURAV SHIVHARE {CHIMC, INDORE}
• 1.What are the Precautions a manager should have while go for Demotion of an employee?• 2. Determining Wage structure is a cumbersome process and it requires lot more knowledge and thinking- discuss • 3. If you are an owner of the production unit of a retail product which method would you adopt for payment of wages?
Assignments
SOURAV SHIVHARE {CHIMC, INDORE}
Industrial Relations • Industrial Relations are exercises in organizational relations between functional interest groups.• According to ILO, IR comprise relationships between the State on the one hand and the employers’ and organizations on the other and the occupational organizations themselves. • It means Collective relationship between management, employees and government in any industrial or non-industrial organizationSOURAV SHIVHARE {CHIMC, INDORE}
Objectives and Importance of IR• To Develop and maintain harmonious relationship between management and labour • To safeguard the interests of labour • To establish and maintain industrial Democracy • To avoid all form of industrial conflict so as to ensure industrial peace • To raise productivity and reduce high labour turnover • To bring about Government control over such industrial units • To ensure a healthy and balanced social order through recognition of human rights by way of trade unionismSOURAV SHIVHARE {CHIMC, INDORE}
Causes and Effects of poor Industrial Relations• • • • • Economic Causes Organizational Causes Psychological Causes Social Causes Political Causes
• Multiplier Effects • Fall in normal Tempo • Resistance to Change • Frustration and Social cost
SOURAV SHIVHARE {CHIMC, INDORE}
Remedies to Improve Industrial Relations • General Guidelines:• 1. Sound personnel polices • 2.Constructive Attitudes • 3. Collective Bargaining • 4. Participative Management • 5. Responsible Unions • 6. Employee WelfareSOURAV SHIVHARE {CHIMC, INDORE} • 7. Effective Grievance Procedure
Remedies to Improve Industrial Relations• Specific Guidelines:• Both Management and Union should Develop trust and positive attitude towards each other. • All basic policies and procedures Relating to Industrial Relations should be clear to every body in the organization and the Union Leaders • The personnel manager should remove any distrust by convincing the union of the company’s integrity and his own sincerity and Honesty. • Management should encourage right kind of Union Leadership • After the settlement is reached should be properly administered.
SOURAV SHIVHARE {CHIMC, INDORE}
Meaning and Definition of Grievances
• Broadly speaking Grievance means any real or imaginary feeling of dissatisfaction and injustice which an employee has about his employment relationship. • According to Michael J Jucious, “ a grievance is any discontent or dissatisfaction, whether expressed or not, whether valid or not, arising out of anything connected with the company that an employee thinks, believes or even feels, is unfair,unjust or inequitable”SOURAV SHIVHARE {CHIMC, INDORE}
Causes of Grievances• 1. Grievances arising out of Working Conditions • 2. Grievances arising from Management policy • 3. Grievances arising from Alleged violation of certain statutes… • 4. Grievances arising out of Personal MaladjustmentSOURAV SHIVHARE {CHIMC, INDORE}
Working Conditions:1. Poor physical conditions of work place
2. Tight production standards 3. Non availability of proper tools and equipments 4. Unplanned changes in schedules & procedures 5. Poor relationship with supervisor Management Policy : 1. Wage Rates 2. Overtime & Incentive Schemes 3. Transfers, promotions, Demotion 4. Penalties for misconduct 5. Lack of opportunities for career growthSOURAV SHIVHARE {CHIMC, INDORE}
Alleged violation of :1. Co. Rules & Regulations 2. Collective Bargaining Agreement 3. Central or State Laws 4. Responsibilities of Management
Personal Maladjustment : 1. Over-ambition 2. Excessive Self-Esteem
SOURAV SHIVHARE {CHIMC, INDORE}
• 1. Exit Interview
Understanding Employee Grievances• Effects of Grievances• Indiscipline • Low morale and decreased productivity • High Absenteeism and turnover • Loss of faith in management • Increase in accidents • Formation of cliques • Lowering of public image of the organization
• 2. Opinion Surveys • 3. Gripe Boxes • 4. Open Door Policy
SOURAV SHIVHARE {CHIMC, INDORE}
Standard Grievance Procedure (ILC) • Follow only standard procedure ( a voluntary Grievance procedure) in pursuance to the Code of Discipline adopted in the 16th session Indian Labour Conference in 1958. It contains Five successive time bound steps each leading to the next in case the aggrieved employee prefers an appeal.SOURAV SHIVHARE {CHIMC, INDORE}
• Model Grievance Procedure1. Aggrieved employee 2. Employee with Departmental Representative Nominated officer HOD 48 hours 3 days
3. If not satisfied with Grievance Committee Management within 7 the answer days; To employee within 3 days 4. If committee fails to Appeal for revision to 7 days to take Management communicate decision/employee not satisfied 5. If still employee unsatisfied Voluntary Arbitration Within a week
SOURAV SHIVHARE {CHIMC, INDORE}
Essentials of Sound Grievance Procedure• 1. Legal Sanctity • 2. Acceptability • 3. Promptness • 4. Simplicity • 5. Training • 6.Follow-up
SOURAV SHIVHARE {CHIMC, INDORE}
Meaning and Definition of Performance Appraisal• Performance appraisal or performance evaluation is the process of assessing the performance and progress of an employee or of a group of employees on a given job and his potential for future development. • According to Flippo, “ Performance appraisal is the systematic, periodic and an impartial rating of an employee’s excellence in matters pertaining to his present job and his potential for a better job”SOURAV SHIVHARE {CHIMC, INDORE}
Objectives of Performance Appraisal• It promotes a process of introspection • It provides Personnel Inventory/Skill Inventory • It is an aid to promotions • It provides linkages with other systems such as Transfer, Training, Placement, Increments etc. • It provides counseling & motivation to employees
SOURAV SHIVHARE {CHIMC, INDORE}
Scenario of Performance Appraisal in India• Singer Co. • Asian Paints • ABB • Maruti Monthly Review System Thrice a year Group Performance as well as Individual Performance Mid Term Dialogue
• Nationalised Banks - Annual • TCS Dissent is noted & appraisals reconsidered
SOURAV SHIVHARE {CHIMC, INDORE}
• 1. Establishing Performance Standards • 2. Communicating the Standards • 3. Measuring Performance • 4. Comparing actual performance with the Standards • 5. Discussing the Appraisal • 6. Taking Corrective ActionsSOURAV SHIVHARE {CHIMC, INDORE}
The process of Performance Appraisal
Methods of Performance Appraisal• Traditional Methods: • 1. Confidential Report • 2. Free Form or Essay • 3. Straight Ranking • 4. Paired Comparisons • 5. Forced Distribution • 6. Graphic Rating Scales • 7. Checklist MethodSOURAV SHIVHARE {CHIMC, INDORE}
• Modern Methods: • 1. Assessment Centre • 2. Appraisal through MBO.
Essentials of an Effective Appraisal System1. Mutual Trust 2.Clear Objectives 3.Standardization 4.Training 5.Job Relatedness
6.Documentation 7. Feedback and Participation 8. Individual differences 9. Post appraisal Interview 10. Review and AppealSOURAV SHIVHARE {CHIMC, INDORE}
PITFALLS in P.A.System
• Halo Effect • Spill – Over Effect • Central Tendency • Constant Error • Personal Bais • Benchmarking SelfSOURAV SHIVHARE {CHIMC, INDORE}
Making Performance Appraisal Effective• Purpose – Development • Objectivity should anchor in subjectivity • Emphasis should be shifted from appraisal to analysis • Setting Targets (KRAs) Dialogue , Feedback, Feedback Counseling • MBO Technique – Bottom up Approach • Seminar for training appraisers • Multiple Appraisers – Judgmental/subjectivity taken care of • Pitfalls to be SOURAV SHIVHARE {CHIMC, INDORE}
Introduction to Career PlanningIt is matching long term requirements of the • individual and the organisation • It includes training, min. years of service –various positions. It is described as devising an organized system of Career movement and growth opportunities from the point of entry of an individual to the point of retirement It is a management technique of mapping out the entire career of young employees in higher skilled, supervisory and managerial positions
Process of Career Planning….• STEPS: I. Identifying Individual Needs & Aspirations: Most individuals do not have clear idea about these. Human Resource Inventory of Organisation & employee potential are ascertained: It will reveal the age, qualifications, experience & aptitude of present employees. Identify the employees having potential for climbing up. It will reveal 3 categories of employees:
Process of Career Planning….1. Employees fit and willing to take up higher responsibilities 2. Employees having potential and willingness to take up higher responsibilities, but require more training and experience 3. Employees having potential but lack the interest or desire. II. Analysing Career Opportunities: Career paths for each position Career demands in terms of knowledge, skill, experience, aptitude Long Term & Short Term Career goals
Process of Career Planning….At a particular level, there may be direct recruits as well as older persons (Promotees) Age balancing in each group III. Identifying Match & Mismatch IV. Formulating & Implementing Strategies: • Changes in the career system by creating new career paths • Changing employee needs and aspirations by scaling down or creating new aspirations • Seeking new basis of integration through problem solving, negotiations & Compromises • Training & Development of people
Process of Career Planning….V. Reviewing Career Plans: Whether plans are contributing to effective utilisation of HR. Questions may be asked: • Was the employee classification correct? • Job description proper? • Unsuitability of any employee? • Future manpower projects valid? • Team doing well as a whole ? • Training & Development Programmes adequately designed ? Answers to above questions through brainstorming sessions. Surveys
Making Career Plan Success:• What makes a career planning a success ? 1. Top Management Support: It needs strong conviction of Top Management 2. Expansion: Business Enterprise must be expanding 3. Clear Goals: Organization must have clear corporate goals for 5-10-15 years 4. Motivated Staff: For motivated, hard working employees, environment need to be created by organisation. 5. Proper Selection: Selection of right man for right job
Making Career Plan Success:• What makes career planning a success ..... (Contd) 6 Maintenance of Proper Age Balance 7. Avoidance of Career Stress/ Burn outs 8. Fair promotion policy + systematic training 9. Internal publicity – wide publicity: Employees should know – what prospects are available to them 10. Continuity
Limitations of Career Planning • It is not suitable for small organisation. • It is not suitable for flat organisation • It is not an effective technique for shop-floor employees • Political Intervention, Nepotism and favouratism • Family Organisations • Opposition of trade unions for merit promotions • May not be effective due to longer period – say a decade
Some Career Planning Terms: Career: A career is all the jobs that one hold during one’s working life Career Path: Sequential pattern of jobs Career Goals: These are benchmarks along one’s career path Career Planning: It is the process by which one selects career goals and the path of these goals Career Development: The Personal movements an individual makes to achieve his career plan.
Career Paths for various types of jobs: 1) Unskilled Worker -> Semi Skilled -> Skilled -> Highly skilled - > Foreman 2) Junior Clerk -> Senior Clerk-> Assistant -> Section Officer -> HOD 3) Supervisor -> Assistant Manager -> Dy. Manager -> Manager -> Manager -> GM 4) Lecturer -> Senior Lecturer -> Reader -> Professor -> Head/Dean -> Director -> VC
Succession Planning Z : GM0- HR AB-0 C-2
A: DGM - TrgD–1 E- 2
B : DGM - IRF - 0 G - 1
C: DGM : HRH - 1 I- 1
• For Higher Positions; For Critical Positions • Preparing people for higher positions; SecondLine;SOURAV SHIVHARE {CHIMC, INDORE}
Current Trends & Future Implications for HRM• • • Breakdown in IR Statutory Requirement Positionwise: Nair Chief of SAIL CMD of Hindustan Photo Films H.R.Alwa -
Narayan Shetty – Head, Karnataka Telecom Vikas Deshmukh – Head, Tata Elxsi Kalpana Morparia – ED, ICICI Bank C.K. Prahlad N. WaghulSOURAV SHIVHARE {CHIMC, INDORE}
Current Trends & Future Implications for HRM…..Contd..1. Increased Concern for HRM 20 years ago Next 5 years – HR As route to the top 2. Termination as a Threat Burden of proving poor performance Career Development & Planning 3. Creation of a Bimodal Workforce 2 large groups Professors / Business People MBBSSOURAV SHIVHARE {CHIMC, INDORE}
Current Trends & Future Implications for HRM…. (Contd….)4. Management’s move to make their organisation ‘Lean & Thin’ Employees insecured Commitment & Loyalty suffering Forced Retirements 5. Dual Career Couples 6. Benefits & Health 7. Working at Home Close Supervision New Monitoring Techniques Virtual OrganisationsSOURAV SHIVHARE {CHIMC, INDORE}
Current Trends & Future Implications for HRM …(contd..)8.
Ergonomics Matching environment to employee Open Offices/cabins Paperless Offices Micro-films
9. 10.
Decline of Unions Constructive Role Quality Management Principles Customer Focused Organisation Leadership Continual Improvement Systems Approach Factual approach to decision making Mutually beneficial supplier-vendor relationshipSOURAV SHIVHARE {CHIMC, INDORE}
Current Trends & Future Implications for HRM …(contd..)11.
Future ModelsShamrock Organisation Federal Organisation Triple I Organisation
12.
Six Sigma Improvement of Process Improvement of Product & Services Improvement in Investor Relationship Improvement in Designing Improvement in Supplier Relationship Improvement in Training & Relationship
SOURAV SHIVHARE {CHIMC, INDORE}
Current Trends & Future Implications for HRM …(contd..)12. Innovation & CreativityImplementation of ideas 13. Core Competency Theory
14. Knowledge Management
SOURAV SHIVHARE {CHIMC, INDORE}
Current Trends & Future Implications for HRM …(contd..)
Conclusion:No one can predict the future.. The environment is more dynamic than the past. Future with exciting challenges & opportunities. Focus will be on following areas: • • • • • • • HRD to become integral part of business Empowerment of employees Productivity through team-work Flatter/matrix organisational structures People sensitive management styles & practices Diverse work force – their management Efficient use of ITSOURAV SHIVHARE {CHIMC, INDORE}
Current Trends & Future Implications for HRM …(contd..)
Conclusion:• • • • • • • Strengthening Organisational communication Greater focus on man-machine interface Employee involvement Performance oriented growth Feedback & counseling Human Capital management Contract employees/package system.
SOURAV SHIVHARE {CHIMC, INDORE}
Workers’ Participation in Management • According Keith Davis Participation refers to “the mental and emotional involvement of a person in a group situation which encourages him to contribute to group goals and share in the responsibility of achieving them” • It is a process by which authority and responsibility of managing industry are shared with workers • In Yugoslavia it is called self-management • In Germany it is known as Co-determinationSOURAV SHIVHARE {CHIMC, INDORE}
In the words of Mehtras, “ the concept of participation as a principle of democratic administration in an industry implies a share by rank and file in the decisionmaking process of an industrial organization through their representatives at all the appropriate levels of management in the entire range of managerial action”SOURAV SHIVHARE {CHIMC, INDORE}
Objectives of Workers participation in management1. Economic objective 2. Social Objective 3. Objective• 1. Democratic right to influence the managerial decisions • 2. Raise worker’ level of motivation and commitment
• 3.Cross-fertilisation and speedy communication of Psychological ideas • Foster better co-operation between labour and SOURAV SHIVHARE {CHIMC, INDORE} management.
Importance of Workers’ Participation in Management1. Mutual Understanding 2. Higher Productivity 3. Industrial Harmony 4. Industrial Democracy 5. Less Resistance to change 6. Creativity and InnovationSOURAV SHIVHARE {CHIMC, INDORE}
Levels/Degrees of Participation1. Communication 2. Consultation 3. Codetermination 4. Self-Management
SOURAV SHIVHARE {CHIMC, INDORE}
Forms of Workers’ Participation in Management1. Suggestion Scheme 2. Works committees 3. Joint Management Councils 4. Worker Directors 5. Co-PartnershipSOURAV SHIVHARE {CHIMC, INDORE}
Assignments • 1. Why Workers Participation in
management is a desperate failure in India? Suggest some measures for making participation successful.
• 2. Write an essay on 360 degree Performance appraisal system which prevails in the most successful Organizations. • 3. “Performance appraisals are mere paper tigers, if you wish to grab incentive please your boss” – Pass a Critical comment on it.SOURAV SHIVHARE {CHIMC, INDORE}
What Is Strategic Management?• Strategic Management
– The ongoing process companies use to form a vision, analyze their external environment and their internal environment, and select one or more strategies to use to create value for customers and other stakeholders, especially shareholders• Vision
– Contains at least two components—a mission that describes the firm’s DNA and the “picture” of the firm as it hopes to exist in a future time period.
SOURAV SHIVHARE {CHIMC, INDORE}
Parts of Strategic Management• Strategy – An action plan designed to move an organization toward achievement of its vision • Mission – Defines the firm’s core intent and the business or businesses in which it intends to operate
SOURAV SHIVHARE {CHIMC, INDORE}
What Is Strategic Management?• Strategic Management
– The ongoing process companies use to form a vision, analyze their external environment and their internal environment, and select one or more strategies to use to create value for customers and other stakeholders, especially shareholders• Vision
– Contains at least two components—a mission that describes the firm’s DNA and the “picture” of the firm as it hopes to exist in a future time period.
SOURAV SHIVHARE {CHIMC, INDORE}
Parts of Strategic Management• Strategy – An action plan designed to move an organization toward achievement of its vision • Mission – Defines the firm’s core intent and the business or businesses in which it intends to operate
SOURAV SHIVHARE {CHIMC, INDORE}
The Strategic Environment • Internal Environment
– The set of conditions (such as strengths, resources and capabilities, and so forth) inside the firm affecting the choice and use of strategies• External Environment – A set of conditions outside the firm that affect the firm’s performanceSOURAV SHIVHARE {CHIMC, INDORE}
• Strategic management is: • Performance oriented • Ongoing in nature • Dynamic rather than static
Key Characteristics of Strategic Management
• Oriented to the present and the future • Concerned with conditions both outside and inside the firm • Concerned with performing well and satisfying stakeholders
SOURAV SHIVHARE {CHIMC, INDORE}
The Three Parts of the Strategic Management Process1. Strategic leaders form a firm’s vision and mission. 2. Firms analyze their external environment and their internal environment. 3. Firms choose and implement a strategy that to creates unique mix of value for customers and satisfies other stakeholders.
– Strategy implementation—the set of actions firms take to use a strategy after it has been selected.
SOURAV SHIVHARE {CHIMC, INDORE}

Vision and Mission Statements Vision Statements
• McDonald’s To give each customer, every time, an experience that sets new standards in value, service, friendliness, and quality. • NASDAQ To build the world’s first truly global securities market . . . A worldwide market of markets built on a worldwide network of networks . . . linking pools of liquidity and connecting investors from all over the world . . . assuring the best possible price for securities at the lowest possible cost. • Petsmart To be the premier organization in nurturing and enriching the bond between people and animals. • Wachovia Wachovia’s vision is to be the best, most trusted and admired financial services company.SOURAV SHIVHARE {CHIMC, INDORE}
Mission statements contd…• • Mission Statements Bristol-Myers Squibb Our mission is to extend and enhance human life by providing the highest-quality pharmaceuticals and health care products. GlaxoSmithKline GSK’s mission is to improve the quality of human life by enabling people to do more, feel better and live longer. Merck The mission of Merck is to provide society with superior products and services by developing innovations and solutions that improve the quality of life and satisfy customer needs, and to provide employees with meaningful work and advancement opportunities, and investors with a superior rate of return. Wipro The mission is to be a full-service, global outsourcing company.SOURAV SHIVHARE {CHIMC, INDORE}



Presentations by students: MBA II (B) – 27, 28, 29 July 2009• Human Resource Planning: Defining & Objectives • HRP: Steps : Collecting information:
External Environment Internal Environment Forecast Demand for HR Forecast Supply of HR Succession Planning Career PlanningSHIVHARE {CHIMC, INDORE} SOURAV
Presentations by students: MBA II (A) – 30, 31 July & 1 Aug 20091. Human Resource Planning: Defining & Objectives
HRP: Steps : Collecting information: 2. External Environment 3. Internal Environment 4. Forecast Demand for HR 5. Forecast Supply of HR 6. Succession Planning 7. Career Planning SOURAV SHIVHARE {CHIMC, INDORE}