Human Resources Management (HRM)

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Human Resources Management (HRM):

Human Resources Management (HRM)


HRM People are different: unique personalities; different emotional responses to diff stimuli; diff attitudes, values, motives, mode of thought Diff behaviour to reactions to promises, praise or criticism; behaviour neither consistent or readily predictable A human being him / herself determines what he / she contributes. Hence individuals, not orgns create excellence. Peter Drucker: “Man, of all the resources available to man, can grow and develop”. Some aspects where humans are different: Motivation; Sociability; Morality; Development

Features of HRM:

Features of HRM Pervasive force: Present in all enterprises Permeates all level of mgnt in orgns Action oriented: Focuses on action rather than record keeping, written procedures Individually oriented: Helps individuals develop their potential fully Encourages individuals to give off their best People oriented: All about people at work; as individuals and groups Puts people on assigned jobs to produce good results

Features of HRM:

Features of HRM Development oriented: Aims to develop potential of individuals Integrating mechanism: Tries to build and maintain cordial relations between people within, between groups and across all levels Auxiliary service: Assist and advice operational groups / line functions on how to manage people effectively Inter-disciplinary function: - A multi disciplinary activity, utilizing knowledge and inputs drawn from psychology, sociology, anthropology, economics, etc.

Scope of HRM:

Scope of HRM Personnel aspects: Manpower planning; Recruitment, selection, placement, induction; Transfer; Promotion; Training & development; Layoff & retrenchment; Remuneration; Incentives; Productivity; etc. Welfare aspect: Working conditions & amenities like canteen, rest rooms, crèches; Housing; Transport; Medical assistance; Education; Health & safety; Recreation facilities; etc. Industrial relations aspect: Union management relations; joint consultations; Collective bargaining; Grievance and disciplinary procedures; settlement of disputes; etc.

HRM: Main activities:

HRM: Main activities Getting in People: Planning for people Analysing the assignment Understanding roles Understanding jobs Understanding role-job fit Recruitment, selection & placement Retaining people: Induction Training & development Performance management Rewards management

HRM: Main activities:

HRM: Main activities Letting people go: Retrenchment Outplacement Sacking Resignation HR research: Employee surveys HR audit Research on all above activities Industrial Relations: Equal opportunity Employee health Handling grievances & labour relations

Fundamental Roles: Line manager & HR function:

Fundamental Roles: Line manager & HR function Line manager’s role: Placing right people on the job Inducting people into the department Training people in functional areas Recommending and assisting for training in other areas Improving productivity of personnel Gaining creative cooperation and developing smooth working relationships Implementing & interpreting company’s policies and procedures Controlling personnel costs Developing abilities in each personnel Appraising performance and providing constructive feedback Creating and maintaining department morale Protecting employees health and physical condition Assisting employees in their career planning

Fundamental Roles::

Fundamental Roles: HR function roles: Assist in HR plans for the entire orgn; integrate unit plans Assist top management in incorporating HR issues at corporate levels Assist line managers in sourcing for human resources Assist in inducting personnel in the orgn Organize for training & development: - compile trg needs; prepare trg calendar; administer trg implementation; assist line function in implementing learning; database of trg undergone Performance management: - work on appropriate perf evaluation systems & procedures; administer systems; prepare trg needs data; data for promotions, transfers, etc.

Fundamental Roles::

Fundamental Roles: HR function roles (contd.): Rewards management: - Salary surveys; Job evaluation; Prepare systems for rewards; Administer reward systems; Coordination with finance for reward disbursement; Working on salary & incentive design and administration Administration: - Welfare schemes design and admin; Travel policies and implementation; canteen; etc. Industrial relations: - Guide on labour issues; collective bargaining; terminating services; etc. HR research: - Internal HR climate survey; Designing new methods of appraisals, orgn structure design and modification; new remuneration systems; HR audit

HR process outputs::

HR process outputs: Human resources planning; Recruitment, selection, induction: Competent employees adopted to organization culture Training & development; Career development: Competent employees with up-to-date skills and knowledge Motivation, Appraisal; Rewards & punishment: Competent employees who desire to exert high effort Benefits, safety, satisfactory union relations: Competent employees who are committed to the organization and satisfied with their jobs Changing conditions requires on-going research and concern for the future

HRM functions::

HRM functions: Managerial Functions: Planning; Organizing; Directing; Controlling Operative functions: Employment: Job Analysis; Understanding roles Human resources planning Recruitment, Selection & Placement; Induction & Orientation Human resources Development: Performance Appraisal Training & development Career planning & development Organizational development

HRM functions::

HRM functions: Compensation: Job evaluation Wage & salary administration Incentives; Bonus; Fringe benefits Social security measures Human relations: Effectiveness of HRM: Organizational health Human resources accounting Human resources audit Human resources research

Human Value:

Human Value

Human Value:

Human Value “Our people are our most important assets” Problem: people do not fit the strict financial definition of an asset: Cannot be transacted at will Contribution is individual and volatile Cannot be valued according to traditional financial processes Intangible assets: knowledge; competence; enthusiasm Part of the intellectual capital Jack Welch: 3 key measures in business, starting from the most important: Employee satisfaction Customer satisfaction Cash flow

Human Value:

Human Value People manage the tangible asset and also maintain and grow the intangible ones Need a balance: People as cost & as assets We lack a commonly accepted framework for assessing the value & contribution of people When one leaves and another joins, there is an impact on human ‘stock’. Need to focus on long term in getting people Mergers & acquisitions Need to know how to obtain relevant and reliable data on intangible assets within the orgn

Human Value:

Human Value Need to measure the driver of performance as much as the outcome themselves: Acquiring new personnel Rebalancing the workforce Maximizing performance & productivity Developing individuals & groups Resource allocation & options for outsourcing Investing in people and organizational development Setting up partnership and alliances Difficult to measure human behaviour; number of assumptions need to be made. People loan their human capital to us and we provide an environment in which they can contribute value to the stakeholders

Human Value:

Human Value People as assets + People motivation & commitment = People committed to added value People as asset: is the cost of a person more that the value they provide to the orgn? Motivation & commitment: the person’s contribution is strongly influenced by their working environment When costs need to be reduced, mgnt should seek out those that are not value creators The way we provide value to people conditions their motivation, commitment and loyalty and hence their contribution and value to other stakeholders

Human Value:

Human Value Orgns can provide value to employees: Salaries, benefits, bonuses Equity in the firm Challenges and interesting work Equipment and resources not otherwise available Being associated with an orgn of repute Status and self-esteem Recognition: managers, peers, publically Opportunities for personal growth and career development Interesting colleagues to work with A satisfying and stimulating environment Social events Opportunities for travel

Personnel Philosophy, Policies:

Personnel Philosophy, Policies

Personnel philosophy:

Personnel philosophy May or may not be in written form Should be for treating employees with dignity and securing willing cooperation Management’s attitude to employee is one major area which relates to personnel philosophy of the company Employees need to be regarded as partners in production or as a precious asset with constructive potentials Personnel policies relate to the personnel philosophy accepted by the management

Personnel Policy:

Personnel Policy A policy is a plan of action; a statement of intention committing the mgnt to a general course of action. Personnel policies relate to: Hiring of manpower Terms & conditions of employment Compensation payment Hours of work Training & development Promotions, transfers, etc. Facilities (housing, travel, uniforms, etc.) Concessions given to employees, etc.

Personnel Policy:

Personnel Policy Personnel policies are the principles and rules of conduct which formulate, redefine, break into details and decide a no of actions that govern the relationship with employees in the attainment of orgn objectives They are the statements of intention indicating what the orgn proposes to do and suggests the values & view points which dominate the orgn actions They act as guidelines which indicate the intentions of the orgn in recruitment, selection, compensation, etc. – serve as a road map in regard to decision making on personnel matters & problems

Personnel Policy:

Personnel Policy Personnel policies framed by the mgnt should be always in writing: Written policies ensure uniformity of application, minimizes favouritism and discrimination among the personnel and ensures continuity of action They make a commitment on the part of the orgn There is no ‘personal interpretation’ of orgn intents Benefits of Personnel Policy manual: Clear explanation of existing policies Useful tool in supervisory training Document of company’s faith on fair personnel policies Readymade guide to personnel policies & procedures Avoids indecision on personnel matters Acts as a communication device

Personnel Policy Manual:

Personnel Policy Manual Objectives of the manual Orgn philosophy How to use the manual Authority of the manual Privileges & resp of supervision & dept heads Existing policies, practices & procedures on personnel matters Employee relations policies Hiring policies Job fundamentals & Job training policy Hours of work Pay policies & procedures, rewards & monetary incentives Promotions, transfers & layoffs Employee benefits & services

Personnel Policy Manual:

Personnel Policy Manual Attendance, punctuality & absenteeism Employee health and safety rules Security benefits and rules Company and plant rules Cost control Grievance & complaint procedure Internal communication Termination of employment Labour relations & employee participation Personnel forms Performance appraisal Discipline, disciplinary action and grievance addressal

Strategic HRM:

Strategic HRM An effective HR manager understands the business needs of the organization. The HR manager is a Mentor / Coach / Counselor for line managers in the area of Human Resources issues

Changing environment of HRM:

Changing environment of HRM Globalization: More competition; need to be world class; More productivity; Quality consciousness; more competent personnel Technological trends: Internet based organization Video conferencing Trends in nature of work: Automated plants Teamwork – self-managed teams Self-oriented jobs Outsourcing Internet based ordering Knowledge based workers

Changing role of HRM:

Changing role of HRM HRM role more strategic: Strategic HRM part of strategic planning Match internal strengths with external opportunities Where are we now in business, we want to be and how should we get there? Formulating & executing HR policies & practices that produce employee competencies & behaviours the company needs to achieve strategic aims HR partners top mgnt to design and execute company strategies Creating high performance work systems: Focus on productivity, performance Call centers – co emp can interact with HR personnel regardless of location Outsource activities to external agencies Personality teats; training, safety issues Self managed teams; decentralized decision making Pay for performance; transformational leadership

Strategic HRM:

Strategic HRM Superior mgrs shape dept policies & practices so they make sense, in terms of (or align with) company strategic aims Strategic management: match company’s capabilities with demands of the environment It is: decide what business you’re in now and which ones you want to be in, formulate a strategy for getting there and execute your plan Some company strategies: Diversification Vertical integration Consolidation Geographical exmansion

Slide 31:

Competitive advantage: factors that allow an orgn to differentiate its products & services: Southwest Airways – low cost airlines – employment policies: motivated and flexible force Larger airlines like Delta – restrictive union rules, work rules & salary structures Today – technology rarely sets an orgn apart: Toyota better because of culture; HR policies Strategic HRM: formulating & executing HR policies & practices that produce needed employee competencies & behaviour Southwest Airways: 15 mts turnaround strategy Dell: low cost leader; Intranet web application – manager perform their own HR tasks

Slide 32:

HR managers must need an in-depth understanding of the value creation proposition of the firm Basics of strategic planning Basic business functions Strategic execution imp part of HR role Another role is strategic formulation Supporting top management Retention, recruitment, training SWOT analysis HRM identifies scorecard measures to measure the extent to which new policies & practices are actually producing the reqd employee competencies and skills, thus supporting mgnt’s strategic goals

HR Scorecard:

HR Scorecard


Scorecard Mgnt judges HR functions based on whether it creates value to the company – contributing in a measurable way to achieving company’s strategic goals: Scorecard shows the metrics the firm uses to measure HR activities & HR behaviours resulting from the activities & the strategically relevant orgn outcomes of these behaviours. Highlights casual link between HR activities; emergent behaviours & resulting firmwide strategic outcomes & performance To evolve the HR scorecard, need to know: The company’s strategy Casual links between HR activities, employee behaviour; orgn outcomes and orgn perf. Mgr needs metrics to measure the activities and results involved

HR Scorecard – 10 steps:

HR Scorecard – 10 steps Define the business strategy: Outline the cos value chain: - What are the co’s required activities - Value chain: identifies the primary activities that create value for customers and the related support activities - Each activity is part of the process of designing, producing, marketing, and delivering the co’s product or services Outline a Strategy map: - A diagram that summarizes the chain of major inter-related activities that contribute to the orgn’s success - South west airways: activities to deliver low-cost, convenient service Identify strategically reqd orgn outcomes: - Dell: quick competent & courteous tech service by phone - South West Airways: Cheapest airways; on time

10 steps:

10 steps Identify the reqd work force competencies & behaviour: - To deliver the strategically relevant orgn outcomes Identify the reqd HR systems policies & Activities: - Dell: Support in trg & providing relevant checklist to deliver tech service - S W Airways: Multi tasking, motivation; performance attitudes Create HR Score card: - Make a visual or computerized score card - Link in a casual way the selected HR activities & emergent employee behaviour and the resulting firm-wide strategic outcome & performance - The points to work on include: - The basic strategic themes - Strategic HR activities matrix - Strategically relevant emergent employees capabilities & behaviours - Strategically relevant customer & orgn outcome metrics - Strategic performance metrics

10 steps:

10 steps Choose HR scorecard measures: Use a mixture of financial and non-financial measures: short & long term goals; external & internal goals. Sample performance measures: - Employee attitude survey measures - Employee turnover - Level of cross-cultural teamwork - Level of organizational learning - Employee productivity, etc. Summarize the scorecard measure in a digital dashboard SW Airways: turnaround times; attracting & keeping customers; on-time flgts Monitor, predict & evaluate:

Human Resources Information System (HRIS):

Human Resources Information System (HRIS) Need to incorporate all the forms in the processes HRIS: Interrelated components working together to collect, process, store and disseminate information to support decision making, coordination, control, analysis and visualization of an organization’s HRM activities Help shift HR’s attention from transaction processing to strategic HR Remove the time spent in processing transactions



Analyzing & Designing Jobs:

Analyzing & Designing Jobs Jobs determine standard of living, places of residence, status and even one’s sense of worth Jobs help orgns accomplish their objectives Jobs are not static; subject to change The job is what the incumbent makes of it Job Analysis: A formal and detailed examination of jobs – tell the things that people do in human work Involves the identification of the required tasks, the knowledge and skills necessary for performing them and the conditions under which they must be performed

Job Analysis:

Job Analysis Job analysis provides the foll info: Job identification: title, etc. Important characteristics: location, supervision, hazards, etc. What the typical worker does: simplicity, routine, resp. Job duties Material and equip used on the jobHow a job is done Reqd personnel attributes Job relationship Mental skills reqd Education, experience reqd

Job Analysis – used in::

Job Analysis – used in: HR Planning Recruitment & Selection Placement & Orientation Training Career counseling Employee safety Performance & Potential appraisal Job design & re-design

Job Analysis::

Job Analysis: Process of Job Analysis results in two sets of data: Job Description: Statement about the job containing items such as – job title, location, job summary, duties, machines, tools & eqpt used, supervision given or received, etc. Job Specification: A statement of human qualifications necessary to do the job. Usually contains such items as – education, experience, training, judgment, initiative, responsibilities, communication skills, etc.

Job Design:

Job Design Job design integrates work content, the rewards and the qualifications required for each job in a way that meets the needs of employees and the orgn It involves the foll steps: The specification of individual tasks The specification of the methods of performing each task The combination of tasks into specific jobs to be assigned to individuals While designing the job, requirements of the orgn and the individual needs of the job holder must be considered Can affect productivity and costs For an employee, motivation and job satisfaction are affected by the match between job factors and personal needs

Work / Job simplification:

Work / Job simplification A job is divided into parts and distributed among individuals Work simplification is introduced when the job designers feel that the jobs are not specialized enough Over-simplification can result in boredom, errors, resignations Job Rotation: Systematic movement of employees from one job to another The employees are given an opportunity to perform different jobs, which enriches their skills, experience and ability to perform different jobs

Job Enlargement::

Job Enlargement: Expanding the scope of the job by aggregating two or more jobs into a single one Involves expanding the no of duties assigned to a given job Brings out some sense of wholeness in the job Reduces monotony & boredom by providing a more complete or whole job to perform Helps increase interest in work efficiency Involves assigning more tasks of similar nature Called horizontal loading – is more appropriate in case of manual, technical and clerical work

Job Enrichment::

Job Enrichment: Based on the assumption that jobs should be more interesting and challenging: Will provide psychological satisfaction to employees Will mean making a job more interesting, satisfying, responsible, higher in status and more rewarding Possible by widening the scope of the job and adding a sense of achievement, increasing responsibility and provide opportunities for advancement and growth Involves a vertical loading of the job so that job holder himself controls the planning and execution of the job

Job Enrichment::

Job Enrichment: Characteristics of Job enrichment: Variety Task identity Task significance Autonomy Feedback

Autonomous, self-directed teams::

Autonomous, self-directed teams: An intact group of employees who are resp for a ‘whole’ work process or segment that delivers a product / service to an internal / external customer The team members work together and improve their operations They have a clear sense of purpose and are effective in taking decisions and ensure the quality of work assigned to the team With empowered teams managers lost in terms of status, authority and power

Job Evaluation:

Job Evaluation Determining the relative worth of a job in an orgn by comparing it with the other jobs within the orgn and with the job market outside Jobs evaluated on the basis of their content and placed in the order of their importance A wage / salary hierarchy is based on such job evaluation – employees given diff wages as per the relative imp of the jobs they perform The jobs are ranked, not the job holders Job analysis should precede job evaluation




Role A system of mutual obligations Role: a position in a social system defined by functions one performs in response to the expectations of the ‘significant’ members of a social system. Role taking: receiving expectations and responding to them Role making: use expectations from own role and develop role behaviour influenced by these expectations Concept of a job – prescriptive

Some Role issues:

Some Role issues Mutuality vs Exclusiveness Creativity vs Conformity Confrontation vs Avoidance Exploration vs Expectation of readymade solutions

Role Stress:

Role Stress Self-role distance: conflict between self-concept and expectations from the role Intra role conflict: conflict between two different roles in a job Role stagnation: need to outgrow earlier long term role Inter role distance: occupying more than one role Role ambiguity: not clear on expectations Role expectations conflict: conflicting expectations from diff role senders Role overload: too many expectations in too little time Role erosion: functions like to perform performed by others Resource inadequacy Personal inadequacy

Manpower Planning:

Manpower Planning

Human Resources Planning (HRP):

Human Resources Planning (HRP) A process of forecasting an orgn’s future demand for and supply of the right type of people in the right number It is a sub-system in the total orgn planning system Facilitates the realization of the co’s objectives by providing the right type and right no of personnel Specifically, HRP is a process by which an orgn ensures that it has the right no and kind of people, at the right place, at the right time, capable of effectively completing and efficiently completing those tasks that will help the orgn achieve irts overall objectives Translates the orgn’s objectives and plans into the no of workers needed to meet those objectives Without HRP, estimation of employee needs is merely guesswork

Importance of HRP:

Importance of HRP Future personnel needs: Planning is significant in that it helps determine future personnel needs Surplus/deficiency in staff is the result of the absence / or defective planning Orgns today are resorting to VRS Also there is an absence of succession planning in senior personnel Coping with change: HRP enables coping with change in today’s competitive, tech environment Generate changes in job content, skill demands, and no & type of persons Shortages in some areas and surplus in others may be observed Creating highly talented personnel: Talented individuals, job hop; could create problems Planning succession of critical positions in the orgn vital

Slide 58:

International strategies: Ability to fill key jobs with foreign nationals & the re-assignment of employees from within or across national borders is a major challenge affecting international business Enables effective process in meeting staff needs from foreign countries and the attended cultural, language & developmental considerations Growing competition for foreign executives may lead to expensive and strategically disruptive turnover among key decision makers Foundation for HR functions: - Provides essential info for designing and implementing HR functions, such as recruitment, selection, personnel movement and training & development

Slide 59:

Increasing investments in HR: Human assets as opposed to physical assets can increase in value An employee who gradually develops his/her skills & abilities becomes a valuable person With investment in training & development, orgn needs to use its resources effectively throughout their careers The Re value of a trained, motivated, productive force is difficult to determine Other benefits: Upper mgnt has better view of HR dimensions of business decisions Personnel costs; mgnt can anticipate imbalances earlier More time provided to locate talent Better planning of assignments to develop managers Major and successful demands on local labour markets can be made

The Planning process:

The Planning process HRP essentially involves forecasting personnel needs, assessing personnel supply and matching demand – supply factors through personnel related programmes The planning process is influences by overall orgn objectives and the environment of business The process components: Organizational objectives and policies HR needs / HR supply forecasts HR programming HRP implementation Control & evaluation programme Surplus: restricted hiring; reduced hours; VRS, layoffs, etc. Shortage: Recruitment & selection

HRP system: main elements:

HRP system: main elements Senior Management: Define orgn objectives Approves plans Amends plans through feedback HR planning unit: Produces HR plans Basic requirement: Definition of time span Scope and details of plan Comprehensive & accurate info Demand forecast: Assessment of reqm to meet objectives based on: Manager’s estimate, statistics, work study

HRP system::

HRP system: Supply forecast: Assessment of current resources and probable losses, taking account of influential internal and external factors HR plan: Matching of demand and supply forecasting Identify key areas Produce contingency plans Assess current utilization of employees

Forecasting techniques (demand)::

Forecasting techniques (demand): Managerial judgment: Mgrs pool knowledge based on experience and various info; arrive at figure In “bottoms up” approach line mgrs submit dept proposals In “top down” approach, top mgrs prepare forecast reviewed by dept mgrs Approach subjective but cost effective Ratio – trend analysis: Involves studying past ratios like between no of workers and sale and extrapolating into the future Work study technique: Use Method study to understand how work is carried out; Work measurement to measure time taken to perform work – arrive at no of persons reqd to perform job Technique useful for jobs done for the first time

Forecasting techniques (demand)::

Forecasting techniques (demand): Delphi technique: Solicit estimate of personnel needs from a group of experts HRP experts summarize this feedback and give it back to the experts for a rethink The process repeated till the experts opinions begin to agree Mathematical models: Markov models Venture analysis

Supply forecasts::

Supply forecasts: Determine whether it is possible to procure the reqd no of personnel and the source of such procurement Supply forecasting measures the no of people likely to be available from within & outside the orgn after making allowance for absenteeism, internal movements & promotions, wastage The supply analysis covers: Existing human resources Internal sources of supply External sources of supply Present employees: HR audits Current inventories

HR plan implementation:

HR plan implementation A series of action programs initiated: Recruitment, selection, placement, Induction Training, development, retraining, redeployment Retention plan, succession plan After vacancies known, identify sources & search for suitable candidates Train and develop in functional & behavioural areas New skills to existing staff when tech changes Retention plans to help reduce avoidable separation of emp Need to keep good managers regardless of downsizing: takes years of grooming to get them

Requisites for successful HRP:

Requisites for successful HRP HRP recognized as an integral part of corporate planning Backing of top mgnt essential HRP resp central to coordinate and consolidate between depts & levels Personnel records up to date, and readily available Time horizon long enough to permit remedial action Planning techniques should be suited to data available and degree of accuracy reqd Plans should be prepared by the skill levels rather than aggregates Data collection, analysis, techniques of planning and the plans themselves need to be constantly revised and improved in the light of experience



Sources of Recruitment:

Sources of Recruitment Internal: Retrenched employees; Retired; Dependents of deceased; Up-gradation Transfer; Promotion of existing employees External: Employees in other organization Job aspirants with employment exchanges Students of educational institutions Candidates referrals Search firms; contractors Head hunters Candidate responding to adverts Unsolicited applications, walk-ins

Methods of Recruitment:

Methods of Recruitment Internal methods: Promotions & transfers Job postings Employee referrals Direct methods: Campus recruitment Indirect methods: Advertisements in newspapers; TV; radio Third party methods: Pvt employment search firms Employee exchanges Gate hiring & contractors Unsolicited applicants / walk-ins Internet recruitment

Alternatives to recruitment:

Alternatives to recruitment Overtime Subcontracting Temporary employees Employee leasing Outsourcing

Recruitment policies & Procedure:

Recruitment policies & Procedure

Selection & Placement:

Selection & Placement


Selection Process of picking individuals who have relevant qualifications to fill jobs in an orgn Choose individuals who can most successfully perform the job, from the pool of qualified candidates Selection is usually a series of hurdles & tests; each one must be carefully cleared before the applicant proceeds to the next Steps: Reception: making a favourable impression among the candidates Screening interviews: Asking details for suitability; screening biodatas to remove clutter, reduce time Application blank: Brief history sheet of the applicant’s background; could be standardized to save time and ensure all data is informed


Selection Steps (contd.) Selection tests: A standardized objective measure of a person’s behaviour, performance or attitude: - Intelligence tests: Mental ability tests; learning, taking instructions, etc. - Aptitude teats: Potential to learn certain skills: programming, Typing, etc. - Personality tests: Measure basic aspects like motivation, intorversion, emotional balance, inter-personal behaviour, self-confidence - Achievement tests: What can do in the current assignment - Simulation tests: Duplicate many activities employees face in workplace - Assessment centers: Group & individual exercises to test , simulate the type of work which the candidate is expected to do: --In-basket; leaderless GD’s; business games; presentation; interviews - Graphology - Polygraph (lie-detector tests; Integrity tests


Selection: Steps (contd.) Interviews: Oral examination of candidates for employment Interviewer tries to obtain & synthesize information about the abilities of the interviewee & the requirements of the job Gives opportunity to the interviewer to: - Size up the interviewee’s agreeableness - Ask questions that are not covered in the tests - Obtain as much pertinent info as possible - Assess subjective aspect of the candidate – facial expression, nervousness - Make judgments on the interviewee’s enthusiasm & intelligence - Give facts to the candidate regarding the company, policies, programme, etc. and promote goodwill towards the company Medical Examination Reference checks

Types of interviews:

Types of interviews The non-directive: Ask questions as they come in the mind Directive / structured: a predetermined set of questions that are clearly job related Situational: Hypothetical incident – how would the interviee respond Behavioural: Focus on actual work incidents Stress: Find how applicant would respond to aggressive, embarrassing, rude & insulting questions Panel interview

Some interview mistakes:

Some interview mistakes Favour applicants who share own attitudes Find difficult to establish rapport Not asking right questions Resorting to snap judgments Forgetting interview contents soon after the event Show leniency to candidate May have own bias Halo / Horn effect Candidate order error Being influenced more by unfavourable than favourable information Under pressure to hire candidates at short notice Being influenced by other factors, not job related


Placement Posting of employee into a specific job Line managers take the decision – match job and qualification of the candidate If improperly placed, jobs will suffer

Induction / Orientation:

Induction / Orientation


Induction Introducing the new incumbent into the orgn. / section / dept Induction serves the foll purposes: Remove fear: - Know more about the jobs, processes, rules, etc. - Know the people you will be working with - Terms & conditions of employment Create a good impression: - Feel at home - Adjust and adapt to the new demands at the job - Get along with people - Get off to a good start A valuable source of information - Role, do’s & don’t’s; systems & procedures; policies

Internal Mobility:

Internal Mobility Transfer: Change in job assignment, may involve promotion / demotion; or no change in status Promotion: Upward movement; higher resp pay, status Basis could be performance or tenure Need a policy on promotion

Employee separation:

Employee separation Resignation: Decides to quit voluntarily Retirement: Compulsory – superannuation; Voluntary Death Layoff: Temp removal from the payroll - Employer – employee relationship merely suspended for the period - To trim extra fat and make orgn lean and mean Retrenchment: Permanent termination; economic reason Outplacement: Training & assist get other job Suspension: Prohibiting emp from attending work; a kind of punishment; subsistence allowance given Discharge & termination: Punitive measure for misconduct

Organizational Culture:

Organizational Culture


Culture How we do things around here Something holistic, historically determined, socially constructed, soft and difficult to change Country Culture (Greet Hofstede): Power distance Individualism vs Collectivism Masculine vs Feminine Uncertainty avoidance Long term vs short term orientation

Corporate Culture:

Corporate Culture The moral, social and behavioural norms of an orgn based on the beliefs, attitudes & priorities of its members 6 independents dimensions of practices: Process oriented vs result oriented Job oriented vs employee oriented Professional vs parochial Open systems vs closed systems Tightly controlled vs loosely controlled Pragmatic vs normative The position of the orgn on these dimensions is determined in part by the business or industry the orgn is in Managing intl business means handling both corporate and country culture

HP culture:

HP culture Creates a conscious corporate culture: “The HP way” HP’s corporate culture is based on: Respect for others A sense of communities Plain hard work

GE culture under Jack Welch:

GE culture under Jack Welch Redesigning the role of leader in the new economy: creating followers through communicating a vision and establishing open, caring relations with every employee Creating an open collaborative workplace where everyone’s opinion is welcome Empowering senior executives to run far-flung businesses in an entrepreneurial fashion Liberating the work force, making everybody a participant through improving vertical communication & employee empowerment

Herb Kelleher: Southwest Airways:

Herb Kelleher: Southwest Airways “It starts with hiring. We are zealous about hiring. We are looking for a particular type of person regardless of which job category it is. We are looking for attitudes that are positive and for people who can lend themselves to causes. We want folks who have a good sense of humour and people who are interested in performing as a team and take joy in team results instead of individual accomplishments. If you start with the type of person you want to hire, presumably you can build a workforce that is prepared for the culture you desire.

Corporate culture & Mergers:

Corporate culture & Mergers Certain cultural issues during post merger phase: Disintegration of organization value system Low employee morale Benefits of synergy require time Rationalization & relocation of people may require time Flight of talented personnel Different culture Rigidity to learn things for blue collared worker Sentimental attachment Anxiety for pink slip Differences in HR style Broken faith in mgnt due to veil of secrecy in merger Stalemate in managerial positions Reduced employee enthusiasm

Making mergers effective:

Making mergers effective Ascertain differences in basic culture and differences Pre-assess the cost implications to integrate manpower of merging orgns Plan for VRS for people rendered surplus Make provisions for increased HR cost for training a re-deployment, relocation, VRS benefits Accommodate employees of merging orgn in new environment Develop an integrated culture with inputs from two orgns Focus on training and learning process Develop a new orgn chart and make it transparent Align the compensation package, if required, even by redesigning

Organizational Diagnostics:

Organizational Diagnostics These are useful diagnostics for gauging the morae of a company’s workforce , testing the impact of new policies and procedures, monitoring long term trends in the workforce and determining where interventions are needed Attitudes towards work: Job satisfaction Role clarity Role conflict Autonomy Participation in decision making Job involvement

Slide 93:

Organizational commitment: Job security Loyalty Trust in management Identification Alienation Helplessness Organizational climate: Fairness Safety & support Communication Tolerance of risk Continuous learning

Human Resources Development:

Human Resources Development


HRD A systematic approach to proactively deal with issues related to individuals and teams in orgns and as a movement to develop orgn capability, to manage change and challenge. HRD efforts, as reflected in concepts and orgn practices, are based on certain values: Openness Confrontation Trust Authenticity Pro-activity Autonomy Collaboration

The Concept:

The Concept People: important resource, can enhance capability People are investment, not costs HRS different from Personnel function: not routine; proactive; emphasizes dev of people; Organic – connected with all other systems in organ; all managers share resp for HRS.

Development as underlying concept:

Development as underlying concept The agents of development include: the employee The boss The HR dept The orgn Effectiveness of managing HR will depend on the emphasis on development Personnel versus HRM function

Development dimensions of Personnel:

Development dimensions of Personnel Analyzing the role: Task Analysis Key Performance areas Critical Attributes Job Evaluation Matching the Role and the Person: Selection / Recruitment / Placement Potential Appraisal Promotion Career Planning / Succession Planning

Development dimensions of Personnel:

Development dimensions of Personnel Developing the person in the role: - Performance Appraisal Feedback and Counselling Mentoring Career Development Training Developing the role for the person: Job Rotation Job Enrichment Job design / job redesign Role effectiveness & Efficacy

Development dimensions of Personnel:

Development dimensions of Personnel Developing Equitability: Management of salary and amenities Management of incentives and reward Standardizing and administering procedures Developing Self-renewing capabilities: Organizational development HRM research Organizational learning Developing culture and climate Coping with collective power

Role of developing Competence:

Role of developing Competence Technical Competence: Technical skills, abilities Managerial Competence: Managerial skills and abilities Process Competence: Dealing with various issues as they happen; problems of commitment, cooperation, conflicts, etc. Helping Competence: Aware of strengths, weaknesses, feedback on perf, counselling Coping Competence: - Dealing with frustration, stress, burnout, etc.

The Concept of HRD:

The Concept of HRD HRD in the ogranisational context is a process by which the employees of an organization are helped in, in a continuous planned way, to: Acquire or sharpen capabilities required to perform various functions associated with their present or expected future roles. Develop their general capabilities as individuals and discover and exploit their own and/or organizational development purposes Develop an orgn culture in which the supervisor-subordinate relationships, teamwork, and collaboration among subunits are strong and contribute to the professional well-being, motivation and pride of the employee.

HRD as a process:

HRD as a process HRD is a process, not merely a set of mechanisms or techniques The mechanisms and techniques such as PA, Counselling, T&D, OD, etc. are used to initiate, facilitate, and promote this process in a continuous way. Because the process has no limits, the mechanisms may need to be examined periodically to see whether they are promoting or hindering the process. Orgns can facilitate this process of development by planning for it, by allocating orgn resources for it, and by exemplifying an HRD philosophy that values human beings and promotes their development.

Goals of the HRD system: to develop::

Goals of the HRD system: to develop: The capabilities of each employee as an individual The capabilities of each individual in relation to his/her present and expected future role The dyadic relationship between each employee and supervisor The team spirit and functioning in every orgn unit Collaboration between different units in the orgn, and The orgns overall health and self-renewing capabilities, which, in turn, increases the enabling capabilities of individuals, dyads, teams and inter-teams and the entire orgn.

HRD process mechanisms / sub-systems:

HRD process mechanisms / sub-systems Performance Appraisal Potential Appraisal and Development Feedback and Performance Coaching Career Planning Training Organizational Development Rewards Employee welfare and Quality of Work life Human Resource Information & Research

HRD Beliefs::

HRD Beliefs: Human Resources are the most important assets in the organization Unlike other resources, HR can be developed to an unlimited value A healthy climate, characterized by the values of openness, proactivity, trust, mutuality, and collaboration, is essential for HRD Employees feel committed to their work and the orgn if the orgn perpetuates a feeling of “belonging” HRD can be planned and monitored in ways that are beneficial both to the individual and the orgn

HRD Beliefs (contd)::

HRD Beliefs (contd): Commitment comes from orgn providing basic needs and higher needs through appropriate mgnt styles & systems Employees commitment increased with opportunity to discover and use one’s capabilities & potential at work Every mgrs resp to ensure development and utilization of individual capability; model behaviour; create a healthy and motivating work climate The higher the mgnt level the more attention to be paid to the HRD function to ensure effectiveness The maintenance of a healthy working climate and development of its human resources are the resp. of every orgn.

The Individual:

The Individual Key unit in an org. Development of individuals: three different aspects: Self-Management: - develop competencies to manage own work - learn to set realistic goals -- SMART - analyse performance results on factors responsible for success/failures. Competence building: - for performing the job better; new skills Advancement: - identifying and developing on potential

The Role:

The Role Role is not synonymous with job, status or position in orgn Role is the position a person occupies as defined by expectations from significant persons, who have face-to-face relationship with the role occupant Three main aspects of role development: - optimum stress: enough challenges to stretch - linkages: among roles and of different organizational roles with challenging goals - Autonomy: scope for taking initiative, solving problems and doing creative work

The Dyad:

The Dyad The dyadic groups (employee and supervisor) basic building blocks in an orgn structure Focus will involving developing the foll three aspects: Trust: efforts to be made to develop such relationships Mutuality: free exchange of help between employee and supervisor; support to each other Communication: Listening; proper feedback to each other; supervisor coaching mentoring and counselling the employee

The Teams:

The Teams Primarily two aspects are important as focus of HRD: Cohesion:Producing synergy; utilize individual competencies - Building teams: Tuckman Resource Utilization: Maximize utilization of resources available with teams. - Team roles


Interteams Develop cooperation among various groups Helps develop corporate identity Need to link team goals with orgn goals

The Organization:

The Organization Need to observe the following three aspects: - Growth: as per customer and orgn needs; providing quality service and maintaining leadership position - Impact: on outside environment and stakeholders - Self-renewal: observe working from time to time and update itself; analyse present and potential problems and take steps to meet challenges.

The HRD Matrix:

The HRD Matrix Scope of HRD is to develop these six human units. They form one of the axis. The second axis is made up of the HRD systems and their activities. HRD activities should be concerned with developing systems to make individuals (and the roles), and the organization (and the teams) more effective. The systems primarily concerned with individual employees (and their roles) relate to their appraisal, their advancement and training. The systems concerned with dev of the orgn (and its teams) would relate to mgnt of work, culture ad orgn renewal.


Systems Appraisal: - Performance - Potential - Performance Coaching / Counseling Career: - Charting career paths for individual employees - Succession plans - Mentoring Training: - Identifying training needs - Planning & delivering training - Evaluating training


Systems: Work: - Task analysis - Quality of Working life - Productivity - Role stress Cultural: - Developing a strong corporate identity - Development of important values - Developing healthy traditions - Developing consistent management practices Self-renewal: - Organizational development

Organizational Development:

Organizational Development


OD Organizations are never completely static Continuous interaction with external forces Changing consumer tastes / attitudes; new technology; legislation An effective orgn needs to develop self-renewing properties: A capability to continuously reexamine itself, and taking both reactive and proactive actions in relation to its environment (internal & external) Need to reexamine existing structures, systems & procedures from time to time, even when the orgns are successful and have no apparent problems necessitating such an examination Orgns can develop internal mechanisms in this regard: establish a function of OD and research. The function can be an independent one or be part of the HRM


OD Research is the most appropriate mechanism for systematising collection of information and data, analysing these scientifically, and learning from them for improvement According to Udai Pareek: OD is a planned effort Initiated by process specialists To help an orgn develop diagnostic skills; coping capabilities; linkage strategies in the form of temporary and semipermanent systems and a culture of mutuality

OD is an effort::

OD is an effort: Planned Organization wide Managed from the top To increase orgn effectiveness & health Through planned interventions in the orgn’s processes using behavioural science knowledge

OD defined:

OD defined A systematic, integrated and planned effort Solve problems that adversely affect operational efficiency at all levels Based on scientific awareness of human behaviour and orgn dynamics An orgn wide effort Directed towards more participative management Integration of individual goals with orgn goals Create an internal environment of openness, trust, mutual confidence and collaboration Help orgn members interact more effectively Enable orgn to cope effectively with external environment

Components of OD process:

Components of OD process An OD expert needs to be invited as the orgn cannot handle the situation. The expert needs to think and plan Needs to apply knowledge and skills of applied behavioural science An internal change agent has to be appointed to carry on the process An emphasis of OD is on planning change on the basis of data; data are continuously collected about several aspects of the orgn and its problems You not only diagnose problems but also develop skills in the orgn to diagnose the problems as part of regular functioning

OD process:

OD process The main thrust of OD is on problem solving abilities of the orgn The orgn is helped to confront and cope with the problems encountered OD lays emphasis on building linkages between the individual goals and orgn goals amongst the individuals who work in the various roles, and among various groups which function in the orgn Problems in orgn can only be resolved through collaborative efforts; thus such efforts need to be made You do this, amongst several ways, by setting up temporary systems, like task forces, and by creating structural changes which may ensure continuing collaboration in the orgn

OD processes:

OD processes OD is based on certain values which are important for the development of orgns as open and proactive systems. OD makes effort to develop OCTAPACE: 8 diff values: Openness Confrontation Trust Authenticity Proaction Autonomy Collaboration Experimentation

Conditions for OD success:

Conditions for OD success Commitment at the top Strong link pins: They are the roles which connect various levels and various parts of the orgn Change can flow through these key roles which can become the main media of communication Willingness and resources in the dept: A dept in the orgn is willing to experiment and has resources which can be used to stabilize change through OD Ensure at least one dept in the orgn stabilizes & continues with the change

Conditions for OD success::

Conditions for OD success: Involvement of an external consultant: Brings in expertise from elsewhere Can take risks and confront organization Strong internal resources: To continue with the work To ensure orgn does not revert back to the existing paradigm Coordinators need to develop like internal OD facilitators

Performance Management:

Performance Management

Performance Management (PM) :

Performance Management (PM) An integrated process that: Sets objectives Appraises employees Translates objectives into individual key result areas (KRA’s) Determines pay, and Helps orgn achieve business goals Involves thinking through various facets of performance, identifying critical dimensions of perf, planning, reviewing, and developing and enhancing perf and related competencies


PM An ongoing communication process that involves both the manager and employee in: Identifying and describing essential job functions and relating them to the mission and goals of the orgn Developing realistic and appropriate perf standards Giving and receiving feedback about the performance Writing and communicating constructive performance appraisals Planning education and development opportunities to sustain, improve, or build on employee work performance

Performance Objectives:

Performance Objectives Need to establish clear performance objectives for the individual, the dept and for the orgn as a whole SMART: Specific, Measurable, Achievable, Relevant and Timed – provides opportunity to scientifically measure the perf targets, trace the possible loopholes in setting the targets and effectively map future strategies, aligning people with the orgn Need to identify appropriate performance indicators: Cost: money spent to manufacture goods or provide service Input: The resources employed for the above Output: Goods / services provided to customers in terms of task accomplishment Outcome: The actual impact and value of the services delivery

Developing perf standards:

Developing perf standards An approach could be top-down or bottom-up collaborative Could benchmark standards with competing and other orgns Need to get the employees stretch to obtain value. Some guidelines: Perf stds should be related to the employee’s assigned work and job reqms Reporting systems should be adequate to measure and therefore should have more quantitative data Quantifiable measures may not apply to all functions. Describe in clear and specific terms the characteristics of perf quality that are verifiable and would meet or exceed expectations Accomplishment of orgn objectives to be included such as: cost control, improved efficiency, productivity, project completion, process redesign, customer service

Checklist for perf standards:

Checklist for perf standards Are the standards realistic? Are the standards specific? Are the standards based on measurable data, observation or verifiable information? Are the standards consistent with orgn goals? Are the standards challenging? Are the standards clear and understandable? Are the standards dynamic?

Perf Management System (PMS):

Perf Management System (PMS) A set of techniques and procedures for improving organizational performance. The main features include: Focus on objective setting Develops systems for ongoing review of objectives Develops personal improvement plans PMS aligns with training & development Ensures formal appraisal with feedback Helps in pay review Develops competence based orgn capability * PMS involves thinking through various facets of performance, identifying critical dimensions, planning reviewing, developing and enhancing performance and related competencies

Performance Appraisal (PA):

Performance Appraisal (PA) PA means analysis, review, or evaluation of performance or behaviour analysis of an employee A formal process to evaluate the performance of the employee in terms of achieving orgn objectives. Three fundamental processes: Confidential review system Self-assessment and review system 360 degree appraisal system


PA All appraisals are of judgment and not always fair Needs consistent approach, clear standards & measures, bias free ratings Main characteristics of PA: A systematic process: Set work standards Assess employee actual perf relative to these standards Offer feedback to eliminate deficiencies & improve perf in due course of time Find out how well employee doing on the job; establish plan for improvement Appraisal carried out periodically Not a past oriented but future directed activity Not limited to “calling the fouls”. Focus on employee development

360 degree appraisal:

360 degree appraisal Requires performance feedback from all important stakeholders Effective in reporting performance; also ensures total employee involvement and employee empowerment The implementation should be gradual; bosses are not normally used to being evaluated by subordinates and will resisit its implementation Helps average out the biases Enables feedback from many stakeholders resulting in all round feedback of the employees performance Confidentiality on the person making the feedback is essential to elicit candid feedback The emperor’s new clothes

360 degrees:

360 degrees The 360 degree feedback, multisource assessment, taps the collective wisdom of those who work most closely with the employee. The collective intelligence on critical competencies or specific behaviours and skills gives the employee a clear understanding of personal strengths and areas ripe for development Employee view this as credible, fair, accurate & motivating Single source assessment reinforce employee accountability and service the single source: the boss There is perceived bias in its implementation

Annual appraisals & reviews:

Annual appraisals & reviews An opportunity to compare overall perf results with objectives & expectations established in the perf plan. Activities include: Review annual perf result compared with expectations Identify accomplishments and areas needing improvement Review the results of development activities Discuss significant factors affecting job performance Assign objective, specific and overall perf ratings Summarize the review on a performance & development form

Perf & Dev Planning:

Perf & Dev Planning The purpose is to: Make performance expectations explicit Tie individual perf to orgn & dept business plans Identify measurement or evaluation criteria for perf Identify gaps in knowledge, skills reqd to achieve expectations Describe specific development activities Foster communication between manager & employee Review business plans; decide what needs to be done; how each employee fit the plans Choose dev activities to enhance capabilities & competence Develop SMART goals Agree perf plans & discuss with each employee

Planning meetings: Manager’s responsibility:

Planning meetings: Manager’s responsibility Develop objectives for the individual Schedule perf & dev planning discussions Assist in determining priorities Review each employee draft perf plan Assist in determining dev areas & activities Maintain real-time file of employee objectives Monitor methods to ensure progress Enable process to incorporate changing scenarios

Planning meetings: Employee’s responsibilities:

Planning meetings: Employee’s responsibilities Familiarize with dept goals & objectives Develop SMART goals with clear perf stds & completion deadlines Prepare supporting data for each objective Decide what resources and coordination will be needed List questions & potential problems for discussion with manager Assess current skill level reqms to meet perf plan objectives; consider competencies needed to be developed Discuss draft plan with manager Renegotiate objectives for major changes

Appraisal – Discussion process:

Appraisal – Discussion process Control the environment State the purpose of your discussion Ask for the employee’s opinion Present your assessment Build on the employee’s strength Ask for the employee’s reaction to your assessment Set specific goals Close the discussion

Interim coaching:

Interim coaching Need to give ongoing perf feedback Based on agreed plans Both positive & negative Could be formal or informal When to provide coaching: When strengths & accomplishments are recognized When performance needs improvement When growth and development are necessary When projects & priorities change The process should be continuous

Suggested feedback:

Suggested feedback Should be descriptive, not evaluative; evaluative  defensive Should be specific then general Should be directed to behaviour that can be addressed Should be well timed Should be checked to ensure clear communication Should be owned by the giver Should be based on observed behaviour Should be balanced: positive & negative; limit negatives to be manageable

Constructive praising:

Constructive praising Praising allows you to: Acknowledge positive behaviour Keep good performance on track Reinforce good performance Help people feel good about themselves Help people feel good about their job performances Motivate people to continue doing a good job Praises which are specific, timely and genuine have the greatest impact. - Vague praises could send mixed signals and seem manipulative

Praising (cont.):

Praising (cont.) Learners should be praised when their performance is approximately right Seasoned employees when they are exactly right Do not say “Yes, but …..” Do not assign more work when praising To deliver constructive praises: Tell employees what was done right Tell how you felt about the behaviour Pause to allow praising to be felt Encourage employees to do more of the same Reaffirm that you value the employee & his/her performance

Constructive criticism:

Constructive criticism Need to occasionally point errors and reprimand when perf slips Need to communicate what expectations has not been met; its impact and expectations for future perf; for corrective action When reprimanding, need to: - Make the facts surrounding the reprimand clear State what the reprimanded employee must do and why Reaffirm your belief in the reprimanded employee

Ineffective reprimands:

Ineffective reprimands Attacking personally rather than focusing on behaviour Reprimanding new learner when goal clarification or more direction is needed Saving up a list of problems & dumping them together Basing feedback on inference rather than on observed behaviour Reprimanding on something that occurred long ago Delivering the same reprimand over and over again Feelings or reactions: Defensive; Resentful; Inadequate; Angry; Focused on feelings rather than on correcting behaviour; Frustration; Upset; Decreased trust & comm; Getting even; Demotivated

Management Assessment:

Management Assessment

Need to assess management:

Need to assess management Most center around difficulties in precisely defining the job of a manager Identifying the differences in requirement at various levels in the hierarchy Some require admin work with heavy load of paperwork; others require coordination between people and still others negotiating with external personnel No one job description deals effectively with complexity of azll sets of reqm Managerial jobs difficult to analyze because of the long term cycle of activities Also a manager’s job is seldom repeated in the same way

Need to assess management:

Need to assess management Judgment of competence to perform in future mgnt position usually based on one of five sources of info: Evaluation of job success and potential by current supervisors Results from traditional paper-and-pencil tests Clinical evaluations by psychologists and related professionals Background interviews, and Observations in job simulations in an assessment center Each of this approaches have strength that can be utilized in a coordinated program for the prediction of management potential There are also weaknesses like in equating perf effectiveness in a lower job with that of a higher level – need assumptions - Such assumptions lead to “The Peter’s Principle” being made effective

Assessment Center (AS):

Assessment Center (AS) An assessment center is a procedure (not a location) that uses multiple assessment techniques to evaluate employees for a variety of manpower purposes and decisions Most frequently approach applied for individuals being considered for selection, promotion, placement or special training and development in management Assessment centers have their greatest value when the participant is aspiring to a job significantly different from the position held The simulation of job reqm for the new positions provides an opportunity to evaluate skills that is not available from observation of performance on the current job


AS Individuals usually assessed in a group Group assessment affords opportunity to observe peer interactions and aids in efficiency of observation Staff members of the assesses to assessors (typically 2:1) is imp to the assessment center process because it allows close contact and observation of participant and makes multiple evaluation possible Assessment techniques employed include: management games; leaderless group discussions; role-playing exercises; simulation techniques; interviews & tests; etc. Task of observing complex social behaviour, integrating the info and making predictions are difficult.


AS Assessors report behavioural observations and dimension ratings for each exercise and then make independent ratings of overall dimensions of performance. The assessors then reach consensus on dimension ratings and finally make predictions of management success. Participating in the exercises may be a learning experience for the participants and may provide personal insights into managerial competence. Feedback of results in the form of oral and written reports to participants and immediate supervisors may clarify developmental needs


Competency The starting point of the assessment center project is to get a clear and accurate specification of what the center is measuring The center primarily measures competency Need to get the list of competency right or the people will be looked at against the wrong requirements leading to incessant problems in the design, development and operation of the center Boyatzis: Competency: “ An underlying characteristic of a person” – it could be a motive, trait, skill, aspect of one’s self-image or social role, or a body of knowledge which he or she uses. Behavioural dimensions that affect job performances


Competency Behaviour and traits are two sides of the same coin. (e.g. trait of self-confidence can be said to be behind whether the person behaves in a self-confident manner) Aspects like creativity and sensitivity are only summaries of behaviour – people behave creatively and so we know they have creativity. Defining competency as a behavioural dimension encompasses traits, motives and dispositions, if it is recognized that these qualities are only convenient inferences from people’s behaviour

Specifying the competencies:

Specifying the competencies For need of an assessment center: The primary objective is to design, within an integrated management development system, processes for assessing people’s levels of competence and developing their competence. The competences should reflect present realities and the future rather than what might have been truly historical Distinguish between competencies that differentiate between performance levels and threshold competencies, which are essential to adequate perf but do not give rise to high perf Important to focus on the level of generality appropriate: e.g. communication skills include writing and face to face skills

Specifying the competencies:

Specifying the competencies Need competencies measurements that can be assessed. Hypothetical psychological variables are inappropriate; e.g. self-monitoring – cannot be understood properly The no of competency dimensions must be kept within bounds. Too many and the accuracy of assessment may suffer The system of competencies and other types of variables should be easy to understand The competency dimension title must be backed up with the behaviours that make up the dimension (e.g. incisiveness = gets a clear overview of an issue; grasps info accurately, relates pieces of info, etc.) Devise orgn specific competencies

Training & Development:

Training & Development


Training Planned process by which knowledge, expertise and / or skills are transferred by an expert to others who need that knowledge, expertise and skills. The basic purpose is to bring about some change in the way the individual’s currently functioning so that his/her performance / results improve Help individuals meet their growth needs and keep the organization viable Improve employability of individuals Target training in areas where good results will benefit the organization High payoffs areas will be where new technology, policies & procedures have created changes


Training Focus training on few key concepts; don’t over train or give too much details Involve supervisors in helping to plan and carry out training All training must be evaluated by the trainees, trainer and the supervisor Back on job, supervisors must monitor progress, facilitate implementation of learning Ensure good value for training

Why Train? --- Issues:

Why Train? --- Issues To survive, the manager needs to increase efficiency and reduce costs Organizations are only as good as their employees Training is not a quick fix; it has to be budgeted like R&D Training must be planned to meet corporate goals and objectives Each of us have to be trained many times in our career or we will be replaced Training should be a development process rather than a series of unplanned events Workers need to be rotated through challenging assignments. Get them involved in their training

Training, is quite simply, one of the highest leverage activities a manager can perform. Most managers seem to feel that training employees is a job that should be left to others, perhaps to training specialists. I on the other hand strongly believe that the manager should do it himself.:

Training, is quite simply, one of the highest leverage activities a manager can perform. Most managers seem to feel that training employees is a job that should be left to others, perhaps to training specialists. I on the other hand strongly believe that the manager should do it himself. Andrew Grove (Intel Corp.)

The Training Triangle:

The Training Triangle Individual Line Manager Training Specialist Individual: Responsibility Active involvement Own interest Line Managers: Responsibility Local Knowledge ( functional training) Training Specialist: Definition of training needs Effective solutions Effective training delivery

Identifying Training Needs:

Identifying Training Needs Identify Business needs Identify mandatory training Identify Divisional / Department needs Job Analysis Work profiling Identify individual needs Appraisal Counselling Requests Testing Selection of individuals Appropriate training provision

Identifying Training Needs & Analysis:

Identifying Training Needs & Analysis Without an effective training identification, we cannot be sure that the learning opportunities we are providing are: - needed by the organization - needed by the individual - on the scale required - in the areas where some ‘problems’ exist Also, is the programme developed appropriate and relevant Often, it is found that identification brings out that the solutions are not necessarily those of training and development * many are concerned with modification, commitment and practive of the people who should be carrying out the work for which they have received training. Failure here is the commission of training, not the omission.

Training Needs Identification & Analysis:

Training Needs Identification & Analysis Training needs identification detects and specifies the trg & dev needs of individuals within the orgn and the orgn as a whole Training needs analysis follows from the training needs identification and determines the most effective and appropriate ways in which the needs might be met Effective training and development in an orgn depends on the need for the improvement of human performance being identified by the provision of appropriate development opportunities

Training needs identification and analysis:

Training needs identification and analysis Confirms or otherwise the stated problem Identifies a problem of training or commission Ensures effective direction to training Saves money by ensuring appropriate and effective action Identifies the size of the problem Identifies the type of the solution Provides the training objectives

Training can also result from::

Training can also result from: A senior manager decides that a particular subject could be good for the employees A trainer who has learned a new subject may feel it is good for the organization Because there is some issue in a department a senior manager assumes it is a training problem A new work is introduced and some personnel have to be trained New procedures requires updation of skills Employees request for training for their self-development

Training Objectives:

Training Objectives What is to be the focus of the proposed training. The specific ways in which people should change, develop, or behave Predetermined / Emergent aims: Who should determine the learning objectives? (the facilitator, learner, both) To what extent can learning aims be determined prior to the training experience? What is the possibility of additional aims emerging during the training event? To what extent might the facilitators impose, consciously or otherwise, some aims because of their own values and by setting norms? To what extent are training aims conceptual (cognitive) or emotional (usually personal)? Will affect the nature of design materials needed, and the type of facilitation required.

Training Objectives:

Training Objectives Are the training objectives remedial or developmental? The extent should be considered and the implication of the focus How long is the group learning intended to have an effect (days, months, years)? What reinforcement will be available to participants to aid in the transition and refreezing processes? The extent to which the activity will be a joint learning experiment, in which the facilitator has a special responsibility The extent to which the facilitator allows participants to experience the activity without heavily processing it “What is expected to change because of this module?” Three broad categories: Cognitive; Psychomotor; Affective

Training Styles:

Training Styles One classification: Listeners; Directors; Interpreters; Coaches Listeners: Tend to create affective learning environments in which learners encouraged to express their personal needs openly The training focus is on the here and now, and the listeners characteristically are highly aware of individual group members Listeners tend to read nonverbal behaviour well, show a great deal of empathy, and assure that all group members are heard Listeners are comfortable with all types of expression, easily expose their own emotions and expect learners to be self-directed and autonomous In training situations, traners with the listening style appear relaxed and unhurried and “go with the flow”, not appearing to worry about the training

Training Styles:

Training Styles Directors: Create learning environment in which participation of the learner is limited. Training focus is on the how and why. The directors take charge and become final judge of what is learned The training process is well planned; delivered and evaluated Interpreters: Tend to create learning envms in which learners are reqd to memorize and master terms, rules and concepts The training focus in on the there and then; interpreters provide info based on objective data Interpreters tend to integrate theory and events by making connections between past and present events Use case study, theories & readings to present well-constructed interpretation and encourage independent thought. Separate self from trainees; share ideas, not feelings; intellectual content

Training Styles:

Training Styles Coaches: Tend to create behavioural learning environments in which trainees are encouraged to participate actively, learn and evaluate their own progress The training focus is on the what and how Coaches characteristically encourage trainees to actively experiment with practical application. Coaches tend to draw on the strengths of the group and utilize trainees as resources They are clearly in charge and make use of activities, problems, and projects based on real life Trainers who prefer a coaching style help trainees to verbalize what they already know and act as facilitators to make the learning experience more comfortable and meaningful.

Training Process: Planning:

Training Process: Planning Job Analysis: - What does the worker do? - Why? - How? - How well? Trainee Analysis: - Who / Where are they? - Special characterisitics - Level of knowledge / skills / experiences? Training needs assessment: - List weaknesses and ways of overcoming them

Training Process: Planning:

Training Process: Planning Job Analysis: - What does the worker do? - Why? - How? - How well? Trainee Analysis: - Who / Where are they? - Special characterisitics - Level of knowledge / skills / experiences? Training needs assessment: - List weaknesses and ways of overcoming them

Training Process: Planning:

Training Process: Planning Determine training objectives: - What has to be done? - Under what conditions? - Up to what standards? - How will it be evaluated?

Training Process: Preparation:

Training Process: Preparation Select & organize content: - Study sources of information - Decide on content - Organize content in a logical sequence Select training techniques, methods and aids - Decide on appropriate techniques - Select suitable methods - Decide on training aids required Prepare lesson plans: - Decide how each lesson is being presented - Set out each lesson step by step - Allocate times for each activity

Training Process: Preparation:

Training Process: Preparation Plan evaluation: - Decide on information required - Decide when this should be allocated - Study methods of gathering information - Select methods to be used - Prepare questions which have to be answered

Training Process: Presentation:

Training Process: Presentation Conduct training: - Keep to your lesson plan - Use a variety of methods - Encourage participation - Use demonstrations, models, visual aids Evaluate training: - Conduct planned evaluation - Summarize results - Write evaluation reports Review & Summarize - Sumarize training & review in the light of evaluations - Discuss with other trainers involved - Revise to improve relevance

On the job Training:

On the job Training Oldest forms of training Roots in the apprentice systems of antient cultures Specially suited for training in the crafts and technical skills Help novice move through increasing levels of skills & knowledge Whenever one person conveys to another the skills or knowledge needed to do a task while both are on the job Informal OJT actions are part of orgn life When skills / knowledge being conveyed are complex and critical to the job, require evidence that the employee can do the job --- hence the need for formal OJT On


OJT Without the the key components of sound training programme design – learning and performance objectives, targeted training materials, and evaluation instruments – informal or unstructured OJT cannot be relied on to convey the skills and knowledge to do a job OJT works well when the training objective is linked to developing cognitive and psychomotor skills through repetition and under supervision This includes training conducted in simulators or on a shop floor during equipment downtime

Developing OJT programs:

Developing OJT programs Needs analysis: The need for the training Situation analysis: Assessing the training audience and analysing the resources available to design and implement training Job inventory and task analysis: Involves the skills and knowledge the employees must obtain to perform competently Behavioural objective specification: Writing measurable perf stds and specifying conditions for perf to occur Training material selection, design, and production: Evaluations material selecting, design and production:

Training Methods:

Training Methods Buzz Session: - To involve large group, divide into small groups to discuss a topic - Gives everyone a chance to participate Case study: - Comprehensive oral, written or filmed account of an event or a series of related events - Presents a situational problem for discussion - Helps develop analytical, problem solving skills - Facilitator guides discussion after case is understood - Best case studies build around actual problems

Training Methods:

Training Methods 3. Committee: - Small group selected to act on behalf of a large group/orgn - May be broken down into subcommittees or ‘task forces’ - To plan promote organize a special event - Study problems and come up with reco for solution - Good training ground for future managers Computer-based-training: - Trg using computers for fast calculations - Ideal for distance learning, dispersed workforce - Learner can go at own speed - Reduce time off, acco, travel; trg anytime

Training Methods:

Training Methods Conference: - Large / small group of people with common interests meeting together by common consent - Group discussed narrow technical area - Early programme planning desirable - Helps share info and make contacts Convention: - Assembly of representatives of regional groups of parent orgn - Educational, plan policies, objectives - Provides individual chance to know orgn. And see it in action

Training Methods:

Training Methods Debate: - Formal contest in which participants present opposing views on a controversial topic - To examine a subject in depth and work out arguments ‘for’ and ‘against’ a given point of view - To help participants think & speak concisely - Develop team spirit in participants Demonstration: - To perform an action before an audience to enable viewers to perform the same action - To teach a particular task - What is seen more likely to be believed & remembered - Trying to do something is a good way to learn

Training Methods:

Training Methods Exhibit: - Display of visual information - To reinforce a lecture - Information for conference / convention Forum: - A public assembly where everyone is given a chance to voice views - Could be an orderly discussion after a topic has been introduced by the speaker, panel, file, etc. - Can help gauge public opinion on a controversial topic - Help develop group opinion by testing ideas

Training Methods:

Training Methods Brainstorming: - Unrestrained offering of ideas by all members of a group - As a pre-evaluation discussion to max ideas - To encourage practical minds to think qualitatively - To develop creative thinking Games & Simulations: - Structured activity in which participants observe rules and compete to achieve an objective - Simulation – trg activity to mirror an actual situation - To get trainees involved so they learn by doing - An efficient substitute for reality

Training Methods:

Training Methods Lecture: - A usually carefully prepared, rather formal dissertation by one with claims to be an expert on the theme - To present factual material in a logical sequence - To entertain or arouse an audience - To stimulate thoughts to open a subject for discussion - Audience role passive Panel: - A grp. (3 to 5 persons) knowledgeable, in full view of audience holding an orderly conversation on a topic - To identify & explore a topic, issue or problem - To assist audience to understand a complex issue

Training Methods:

Training Methods Programmed Instructions: - Material presented as a series of small, carefully graduated, sequential steps - Mastering requires the active participation of learner at her own preferred pace - For learning at a distance, correspondence - Self-testing produces immediate feedback 16. Question Time: - An organized session that follows formal speeches or a forum or a panel - Members in audience invited to submit questions

Training Methods:

Training Methods Role-Playing: - A real life situation improvised and acted in front of a group, discussion on implication of performance for situation under consideration - To examine a problem in human relationship - Helps role player assume another role and understand it Seminar: - A group whose members may be called upon to play a formal role under guidance of a recognized authority on the subject - To study ‘in depth’ under a expert - Authority guides discussion and promotes learning

Training Methods:

Training Methods Symposium: - A series of short prepared speeches by up to 5 authorities covering various aspects of a subject – followed by audience involvement - To present new material concisely & logically - To present several differing views on same subject Workshop: - A group ‘in retreat’ from a common workplace to share work related common interests; solve work related problems - To identify, explore and seek solns to work related problems - For in-depth study of a situation

Transfer of Learning:

Transfer of Learning Earlier, HRD did not have to show results of their training efforts --- not so now Research show a poor track record of transfer of learning Factors enabling effective transfer: - Clear performance specifications - Necessary support in the workplace - Clear consequences for performance - Prompt feedback to performers - Right people on the right job - Necessary skills and knowledge Above factors are necessary to support effective performance

Transfer of Training -- Barriers:

Transfer of Training -- Barriers Lack of reinforcement for new behaviours on the job Problems and/or obstacles in the work environment Non-supportive organizational climate Trainee’s perception of new skills as impractical or irrelevant Trainee’s discomfort with change Separation from trainer at work site Poor training design and/or delivery Negative peer pressure

Transfer of Training – Line Mgr support:

Transfer of Training – Line Mgr support For effective transfer of training on the job the following cycle of support is necessary from the trainee’s manager: Manager discusses the deficiency with the trainee Manager gets the trainees buy-in, connects with the trainee’s incorrect behaviour Manager organizes appropriate training intervention through the concerned agency Manager briefs the trainee on what to learn from the programme Manager debriefs the trainee on return from the programme Manager helps the trainee implement the learning on the job

Evaluating Training :

Evaluating Training Consider following factors for effectiveness in evaluating training Determining needs Setting objectives Determining subject contents Selecting participants Determining best schedules Selecting appropriate facilities Selecting appropriate instructors Selecting and preparing audio-visuals Coordinating the program Evaluating the program

Evaluating Training:

Evaluating Training In evaluation consider the following factors: To what extent does the content meet the needs of those attending the program? Is the trainer the one best qualified to teach? Does the trainer use the most effective methods? Are the facilities satisfactory? Is the schedule appropriate for the participants? Are the aids effective in improving communication and maintaining interest? Was the coordination of the program satisfactory? What else can be done to improve the program?

Level 1: Reaction:

Level 1: Reaction Measures how those who participate in the program react to it A measure of customer satisfaction Reaction can make or break a program Need to get a positive reaction – future of program depends on it If reaction not positive, will not be motivated to learn Positive reaction does not guarantee learning Sometimes the form called happiness sheets Tells trainees that the trainer wants to learn and improve Can be used to compare trainers Can provide feedback to improve the program

Level 2: Learning:

Level 2: Learning Learning defined as the extent to which participants change attitudes, increase knowledge, and/or increase skill as a result of attending a program To evaluate learning, the specific objectives must be determined Training programs can teach Knowledge, skills and attitudes Thus measuring learning means determining one or more of the following: - What knowledge was learned? - What skills were developed or improved? - What attitudes were changed? Without learning there is no change in behaviour

Level 3: Behaviour:

Level 3: Behaviour Behaviour can be defined as the extent to which change in behaviour has occurred because the participants attended the program For a change to occur 4 conditions are necessary: - The person must have a desire to change - The person must know what to do and how to do it - The person must work in the right climate - The person must be rewarded for changing The boss can create five diff types of climate: Preventing, Discouraging, Neutral, Encouraging, Requiring Behaviour evaluation will be carried out after some time

Level 4: Results:

Level 4: Results The final results that occurred because the participants attended the program Could include increased production, improved quality, reduced costs, etc. Need to be sure that these results are due to the program The final objective of the program must be stated in these terms Difficult to measure final results in programs such as leadership, communication, motivation, etc. Not an easy task to measure final results

Compensation Management:

Compensation Management


Basics Job satisfaction; esteem; happiness Management’s attitude and concern for them Retention issues Getting talent Importance of work and responsibility levels


Basics Exec compensation consists of three key components: Cash compensation: salary and bonus Perquisites and supplementary benefits: insurance, club membership, etc Long-term incentives: stock options, etc Firm performance is another determinant of executive compensation Compensation is a methodical approach to assigning a monetary value to employees in return for work performed Managers can use compensation as tool to enforce performance of employees at workplace to sustain competitive advantage Remuneration refers to monetary rewards


Basics Employee compensation consists of value and not money A good compensation program aligns with orgn and people It makes a tradeoff between the expectations of employees and orgn HR outcomes result from a good compensation plan Orgns globally try to adopt innovative compensation plans to remain competitive in the market Employees do not want only expensive compensation plans, They also value aspects other than money Aligning compensation plans with business results is not the right option; need to align with work performance

Job Evaluation:

Job Evaluation Systematic process to evaluate worth of job in orgn Manage internal and external consistency in compensation Selection of job dimension and rating The program properly explained to the employees Market factors to be considered Steps: Plan for Job evaluation Job Analysis: job description; specification Selection of job dimension Classification of jobs --- contribution and significance to the orgn Implementation Maintenance

Compensation concepts:

Compensation concepts Compensation is the price for a factor of production – it serves to allocate scarce human resources to productive use Economic concept: comp is governed by the same logic as any other purchase by the firm Psychological: represents the psychological contract between the individual & the orgn Sociological: Pay is a status symbol within orgns & society Political: Involves use of power & influence for pay Equity concept: Distributive justice; returns to be proportionate with contributions

Compensation Decisions:

Compensation Decisions Necessitates a series of decisions. End result is a pay rate for each employee in the orgn Three core decisions: pay level; pay structure; pay system For supporting these, three other decisions: pay form; pay treatment for special groups; pay administration All these decisions influenced by a no of environmental and organizational variables: economic, socio/cultural, legal envms and orgn’s structure and workforce

Comp decisions:

Comp decisions Pay levels: Refers to the average pay for jobs, depts or the enterprise An average pay should be set to secure and keep a productive force Major consideration include: public policy; pay for comparable work in the community or industry (the going rate), and; company response to economic, political and social issues These considerations may be weighed unitarily or together with the unions representing the employees Some of these decisions end with personal interactions (salaries), some are provided on a group basis (e.g. medical insurance) Pay structure: Focuses on the relationships between jobs within the orgns Involve arraying jobs in a hierarchy and setting pay for these jobs relative to their status in the hierarchy; involve internal & external standards

Comp decisions:

Comp decisions Pay system: - Determining pay of individual employees on the same job - How to differentiate among employees Whether to pay for time or for output Pay form: composition of ; money, benefits Pay treatment of special groups: sales people; professionals Pay achievement: seek answers to questions of efficiency, effectiveness, and legality

Managing compensations:

Managing compensations Involves two main issues: controlling costs and leveraging pay Establish an agile compensation & benefits system that tracks costs, helps to ensure pay equity, is understood by employees, and keeps in touch with employee desires Another imp area is ensuring equity: managing employee perception. Some steps to do this: Categorize employees by job: Avoid tendency to define jobs very narrowly Fewer jobs better than more More jobs make system cumbersome and difficult to administer Consider the speed with which jobs change; have an agile, flexible system Create few job levels for each job

Managing compensations:

Managing compensations Compare pay to the labour market: Benchmark against competitors, industry Provide basis with which to establish financial values for jobs - Tell how well we relate to the labour market Provide info for establishing salary ranges Manage internal equity: High potential for morale problems and turnover Pay people within a salary range and pay for performance Need to act properly in case equity needs to be breached Link with job performance: Better performers should get the better salary 5. Communicate how pay works

Variable pay systems:

Variable pay systems Employee compensation that varies with the orgn’s business performance Basic salary is paid regardless of how well the orgn is performing System works well when the orgn’s business perf is equal to or better that the industry average To be optimally successful, the employee must understand how their individual performance can impact their variable paythe most effective systems have established team or business unit perf targets Formal bonus; incentive plans: Award depends on individual, group and orgn wide perf

Variable pay systems:

Variable pay systems Profit sharing plans: funded by the orgns profits based on a specified formula; allocated usually as % of basic salary Lump salary merit awards: financial recognition for an individual’s job in lieu of merit-based salary increases; award must be reearned every year Spot bonuses: Paid immediately after a significant job performance event Gain sharing plan: share productivity gains in accordance to predetermined formula Alternative plan: Skill based; pay-for-knowledge Stock plans: ESOP; offered shares exercised after a specified time; good when the value increases

Compensation Administration:

Compensation Administration Maintaining equity in distribution of wages & salary Maintaining competitiveness in the marketplace Matching employee expectations Reinforcing positive employee behaviour & contribution to the orgn Eliminating any discrepancy in wage admin in the orgn Maintaining good industrial relations and harmony Assists in financial management Legal requirement

Wage Concepts:

Wage Concepts Wage: basis for calculati0on of compensation for employees Minimum Wage : remuneration sufficient to enable an average worker to fulfill obligations Fixed by government and enforced by law for all scheduled employment Revised at least once every five years based on consumer price index Fair Wage : Workers performing work of equal skill, difficulty or unpleasantness must receive equal or fair wages Never lower than the minimum wage Should relate to productivity of labour Living wage : should enable male members of fly to provide for self, fly food, clothing, shelter & education for children

Industrial Relations:

Industrial Relations


IR Traditionally a fire fighting function IR comes into full play only after the crisis erupts Today, unionism, job security, protective legislation, etc. are losing its relevance. Today’s catch words are productivity, competitiveness, downsizing, job-hopping and union free plants. IR is concerned with the relationship between management and workers and role of regulatory mechanisms in resolving any industrial disputes


IR IR: concerned with the systems, rules and procedures used by unions and employers to determine the reward for effort and other conditions of employment, and to regulate the ways in which employers treat their employees. Covers the following: Collective bargaining Role of management, unions and the government Machinery for resolution of industrial disputes Individual grievance and disciplinary policy and practices Labour legislation IR training


IR One objective of IR is to protect worker’s interests and to improve their economic conditions However, where a worker’s behaviour deviates from expected lines, it is the management’s prerogative to take action - Set procedure for handling any act of indiscipline or indiscretion on the part of an employee and if management satisfies the procedures, justified in taking action or even removing the employee from service.

Employee Relations:

Employee Relations Relationship at work critical: Shape the nature and amount of productive effort The degree of cooperation or conflict The amount of satisfaction or dissatisfaction Effective utilization or otherwise of physical and financial resources in an orgn Issue of power, authority & fairness Employee relations procedures designed to try to accommodate different interests & provide a ‘safety valve’ for conflict expressions and resolutions Procedure also designed to allow for apparent or even real participation in the governance of the orgn

Employee Relations:

Employee Relations The range of managerial choices will be influenced by the context: industry sector; size of the establishment; national context, etc. A fundamental issue, often expressed explicitly, sometimes implicitly, is the degree of regulation to which ER is subjected Employers may ‘choose’ to handle potential IR conflict by pre-emption  i.e. by agreeing, upfront, a whole set of rules: Rules can be substantive (e.g. concerning wage rates, holiday entitlement, etc.) and, Procedural (i.e. governing the conduct of relationships itself, such as how grievance & disputes will be handled

Employee Relations:

Employee Relations Key drivers of change in ER in recent years have been the opening up of international markets to greater competition; de-regulations; shifts in political perspectives and agendas; legislative changes; shift in consumer expectations The role of IR specialists or advisors is not to pretend or assume that a perfect enduring harmony can be found, but rather to broker or accommodate between conflicting positions - Negotiation becomes the central skill Given the extensive use of outsourcing and subcontraction --- you could even manage without a workforce.

ER Strategy: InternalFactors:

ER Strategy: InternalFactors Internal & External factors influence IR strategy: The attitude of management to employees and union The attitude of employees to management The attitude of employees to unions The inevitability of differences of opinion between management and unions The extent to which management can or wants to exercise absolute authority to enforce decisions affecting the interests of the employees The present and future strength of the unions The existence of multiple unions Extent of effective agreed procedures for discussing and resolving grievances Effectiveness of managers / supervisors in the orgn

ER Strategy: External Factors:

ER Strategy: External Factors The militancy of unions – nationally or locally The effectiveness of the union and its officials; their control on the union The authority and effectiveness of the employer’s association The extent to which bargaining is carried out at national, local or plant level The employment and pay situation – nationally and locally The legal framework within which IR exists

IR decisions:

IR decisions A proactive IR strategy program must cover the foll decisions: Communications: How best can we convey our philosophy to employees? Relationships: How well can we improve our relationships with employees and unions? Competence: How to improve the competence of managers and supervisors in dealing with employees and unions? Discipline and conflict: How shall we deal with it?

Trade Unions:

Trade Unions A voluntary orgn of workers formed to promote and protect their interests through collective action. The trade Union act defines a trade union as a combination, whether temporary or permanent, formed: Primarily for the purpose of regulating the relation between: - workers / employers; workers / workers; employers / employers - For imposing restrictive conditions on the conduct of any trade or business, and includes any federation of two or more trade unions

Why employees join unions:

Why employees join unions Earlier workers joined union to protect themselves against exploitation by the management; or by force; hire and fire policies; inhuman working conditions; niggardly wage payments and long hours of work Several union leaders in the past were goods who forced workers to join unions With a general increase in literacy and economic status, violence is becoming irrelevent.

Unions strategic choices:

Unions strategic choices Bread & butter versus political objectives: Adversarial versus cooperative role Traditional Issues versus New services: Unions gradually losing ground, due to the changing landscape Relevance of unions in future depends on their ability to cope with structural, economic and social changes Ability to accommodate changes in social attitudes without compromising their collective character

Union Tactics:

Union Tactics Organizing drive: forming a union Strike: A concerted temporary suspension of functions, designed to exert pressure upon others Strike is a double edged sword; destroys not only the mgnt but also the workers Unions also invoke political patronage to beat the management

Resolving Disputes:

Resolving Disputes Disputes manifest in the form of strikes, bandhs and lockouts. Consequences are loss of production, profits markets and even closure of plants. As per the Industrial Disputes Act, 1947, Industrial disputes mean any dispute or difference between employers and workmen, or between workmen and workmen, which is connected with the employment or non-employment or terms of employment or with the conditions of labour of any person Causes of disputes include: wages; union rivalry, political interference, unfair labour practices, multiplicity of labour laws, and others.

Settlement of disputes:

Settlement of disputes Most important of the methods: Collective Bargaining: Representatives of a labour union meet management representatives to determine employee’s wages and benefits, to create or revise work rules, and to resolve disputes or violation of labour contract Code of discipline: defines duties and responsibilities of employers and workers. Formulated by the Ministry of Labour and Employment Grievance procedure: A grievance is an employee’s dissatisfaction or feeling of personal injustice relating to his/her employment relationship

Settlement of disputes:

Settlement of disputes Arbitration: a procedure in which a neutral party studies the bargaining situation, listens to both parties and gathers information, and then make recommendations that are binding on the parties. Conciliation: A process by which representatives of workers and employees are brought together before a third party with a view to persuading them to arrive at an agreement by mutual discussion between them. The third party may be an individual or a group of people. Adjudication: Means a mandatory settlement of an industrial dispute by a labour court or a tribunal. Generally a govt. refers a dispute for adjudication depending on the failure of conciliation proceedings.

Settlement of disputes:

Settlement of disputes Consultative Machinery: Towards end essential to refer to the consultative machinery set by the govt to resolve the conflicts. Main function is to bring the parties together for mutual settlement of differences in a spirit of cooperation and goodwill Could operate at the plant, industry, state and the national level At plant have the works committee; joint management councils Works committee constituted as per the provisions of the Industrial Disputes Act, 1947

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