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Chapter 1 Introduction to human resourcemanagement

Definition (concept for 2 marks) - Edwin Flippo defies HRM asplanning,organizing, directing, controlling of procurement,development, compensation,integration , maintenance and separation of humanresources to the end thatindividual, organizational and social objectives areachieved.

Features of HRM or characteristics or nature (3 or 4

marks)

1. HRM involves management functions like planning,organizing, directingand controlling

2. It involves procurement, development, maintenance ofhuman resource

3. It helps to achieve individual, organizational and socialobjectives

4. HRM is a mighty disciplinary subject. It includes the studyof managementpsychology communication, economics and sociology.

5. It involves team spirit and team work.

Evolution of HRM(for 10 or 5 marks)

The evolution of HRM can be traced back to Kautilya ArthaShastra where herecommends that government must take active interest inpublic and privateenterprise. He says that government must provide a proper

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procedure for regulatingemployee and employee relationIn the medieval times there were examples of kings likeAllaudin Khilji who

regulated the market and charged fixed prices and providedfixed salaries to theirpeople. This was done to fight inflation and provide a decentstandard of livingDuring the pre independence period of 1920 the trade unionemerged. Manyauthors who have given the history of HRM say that HRMstarted because of tradeunion and the First World War.

The Royal commission in 1931 recommended the

appointment of a labourwelfare officer to look into the grievances of workers. Thefactory act of 1942made it compulsory to appoint a labour welfare officer if thefactory had 500 ormore than 500 workers.

The international institute of personnel management andnational institute oflabour management were set up to look into problems faced

by workers to providesolutions to them. The Second World War created awarenessregarding workersrights and 1940s to 1960s saw the introduction of newtechnology to helpworkers.

The 1960s extended the scope of human resource beyondwelfare. Now itwas a combination of welfare, industrial relation,administration together it wascalled personnel management.With the second 5 year plan, heavy industries started andprofessionalmanagement became important. In the 70s the focus wason efficiency of labourwile in the 80s the focus was on new technology, making it

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necessary for newrules and regulations. In the 90s the emphasis was onhuman values anddevelopment of people and with liberalization and changing

type of workingpeople became more and more important there by leadingto HRM which is anadvancement of personnel management.

Scope of HRM/functions of HRMThe scope of HRM refers to all the activities that come underthe banner of HRM.

These activities are as follows

1. Human resources planning :-Human resource planning or HRP refers to a process bywhich thecompany to identify the number of jobs vacant, whether thecompany hasexcess staff or shortage of staff and to deal with this excessor shortage.

2. Job analysis design :-

Another important area of HRM is job analysis. Job analysisgives adetailed explanation about each and every job in thecompany. Based on this

job analysis the company prepares advertisements.3. Recruitment and selection :-Based on information collected from job analysis thecompanyprepares advertisements and publishes them in the newspapers. This isrecruitment. A number of applications are received after theadvertisement ispublished, interviews are conducted and the right employeeis selected thusrecruitment and selection are yet another important area ofHRM.

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4. Orientation and induction :-Once the employees have been selected an induction ororientation

program is conducted. This is another important area ofHRM. Theemployees are informed about the background of thecompany, explainabout the organizational culture and values and work ethicsand introduce tothe other employees.

5. Training and development:-Every employee goes under training program which helps

him to putup a better performance on the job. Training program is alsoconducted forexisting staff that have a lot of experience. This is calledrefresher training.

Training and development is one area were the companyspends a hugeamount.

6. Performance appraisal :-Once the employee has put in around 1 year of service,performanceappraisal is conducted that is the HR department checks theperformance ofthe employee. Based on these appraisal future promotions,incentives,increments in salary are decided.

7. Compensation planning and remuneration :-There are various rules regarding compensation and otherbenefits. Itis the job of the HR department to look into remunerationand compensationplanning.

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8. Motivation, welfare, health and safety :-Motivation becomes important to sustain the number ofemployees inthe company. It is the job of the HR department to look into

the differentmethods of motivation. Apart from this certain health andsafety regulationshave to be followed for the benefits of the employees. This isalso handledby the HR department.

9. Industrial relations :-Another important area of HRM is maintaining co-ordinalrelations

with the union members. This will help the organization toprevent strikeslockouts and ensure smooth working in the company.

Challenges before the HR manager/before modernpersonnel management

Personnel management which is know as human resourcemanagement has adapted

itself to the changing work environment, however thesechanges are still takingplace and will continue in the future therefore the challengesbefore the HRmanager are

1. Retention of the employees :-One of the most important challenge the HR manager facesisretention of labour force. Many companies have a very highrate of labourturnover therefore HR manager are required to take someaction to reducethe turnover

2. Multicultural work force :-

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With the number of multi cultural companies are increasingoperationsin different nations. The work force consists of people fromdifferent

cultures. Dealing with each of the needs which are differentthe challengebefore the HR manager is integration of multicultural labourwork force.

3. Women in the work force :-The number of women who have joined the work force hasdrasticallyincreased over a few years. Women employees face totallydifferent

problems. They also have responsibility towards the family.Theorganization needs to consider this aspect also. Thechallenge before the HRmanager lies in creating gender sensitivity and in providing agood workingenvironment to the women employees.

4. Handicapped employees :-

This section of the population normally faces a lot ofproblems on the

job, very few organization have jobs and facilities speciallydesigned forhandicapped workers. Therefore the challenge before the HRmanager lies increating atmosphere suitable for such employees andencouraging them towork better.

5. Retrenchment for employees :-In many places companies have reduced the work force duetochanging economic situations, labourers or workers who aredisplaced facesever problems. It also leads to a negative atmosphere and

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attitude amongthe employees. There is fear and increasing resentmentagainst themanagement. The challenge before the HR manager lies in

implementing theretrenchment policy without hurting the sentiments of theworkers, withoutantagonizing the labour union and by creating positiveattitude in theexisting employees.

6. Change in demand of government :-Most of the time government rules keep changing. While alot of

freedom is given to companies some strict rules andregulations have alsobeen passed. The government has also undertaken thedisinvestment incertain companies due to which there is fear among theemployees regardingtheir job. The challenge before the HR manager lies inconvincingemployees that their interest will not be sacrificed.

7. Initiating the process of change :-Changing the method of working, changing the attitude ofpeople andchanging the perception and values of organization havebecome necessarytoday. Although the company may want to change it isactually very difficultto make the workers accept the change. The challengebefore the HRmanager is to make people accept change.

Significance/importance/need of HRM (5/10mks)

HRM becomes significant for business organization due tothe following reasons.

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1. Objective :-HRM helps a company to achieve its objective from time totime by

creating a positive attitude among workers. Reducingwastage and makingmaximum use of resources etc.

2. Facilitates professional growth :-Due to proper HR policies employees are trained well andthis makesthem ready for future promotions. Their talent can beutilized not only in thecompany in which they are currently working but also in

other companieswhich the employees may join in the future.

3. Better relations between union and management :-Healthy HRM practices can help the organization to maintaincoordinalrelationship with the unions. Union members start realizingthat thecompany is also interested in the workers and will not go

against themtherefore chances of going on strike are greatly reduced.

4. Helps an individual to work in a team/group :-Effective HR practices teach individuals team work andadjustment.

The individuals are now very comfortable while working inteam thus teamwork improves.

5. Identifies person for the future :-Since employees are constantly trained, they are ready tomeet the jobrequirements. The company is also able to identify potentialemployees whocan be promoted in the future for the top level jobs. Thus

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one of theadvantages of HRM is preparing people for the future.

6. Allocating the jobs to the right person :-

If proper recruitment and selection methods are followed,thecompany will be able to select the right people for the right

job. When thishappens the number of people leaving the job will reduce asthe will besatisfied with their job leading to decrease in labourturnover.

7. Improves the economy :-

Effective HR practices lead to higher profits and betterperformanceby companies due to this the company achieves a chance toenter into newbusiness and start new ventured thus industrial developmentincreases andthe economy improves.

Chapter 2 Job analysis, job design, job evolution

Define job analysis (2 mks concept)A job is defined as a collection of duties and responsibilitieswhich are giventogether to an individual employee. Job analysis is theprocess of studying andcollecting information relating to operations andresponsibilities of a specific job.It can be explained with the help of the following diagram

1.Job analysisJob description Job

specificationJob title/ name of the job Qualification

Working hours QualitiesDuties and responsibilities

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ExperienceWorking conditions Family

backgroundSalary and incentives Training

Machines to be handled on the job Interpersonalskills

As mentioned in the above table job analysis is divided into 2parts

a)Job descriptionwhere the details regarding the job are given.

b)Job specification

where we explain the qualities required by people applyingfor the job.

Need/importance/purpose/benefits of job analysis

Def: - A job is defined as a collection of duties andresponsibilities which are giventogether to an individual employee. Job analysis is theprocess of studying and

collecting information relating to operations andresponsibilities of a specific job.

The following are the benefits of job analysis.

1. Organizational structure and design :-Job analysis helps the organization to make suitable changesin theorganizational structure, so that it matches the needs andrequirements of theorganization. Duties are either added or deleted from the

job.

2. Recruitment and selection :-Job analysis helps to plan for the future human resource. Ithelps to

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recruit and select the right kind of people. It providesinformation necessaryto select the right person.

3. Performance appraisal and training/development :-Based on the job requirements identified in the job analysis,thecompany decides a training program. Training is given inthose areas whichwill help to improve the performance on the job. Similarlywhen appraisal isconducted we check whether the employee is able to work ina manner inwhich we require him to do the job.

4. Job evaluation :-Job evaluation refers to studying in detail the jobperformance by allindividual. The difficulty levels, skills required and on thatbasis the salary isfixed. Information regarding qualities required, skilled levels,difficultylevels are obtained from job analysis.

5. Promotions and transfer :-When we give a promotion to an employee we need topromote himon the basis of the skill and talent required for the future job.Similarly whenwe transfer an employee to another branch the job must bevery similar towhat he has done before. To take these decisions we collectinformationfrom job analysis.

6. Career path planning :-Many companies have not taken up career planning for theiremployees. This is done to prevent the employee fromleaving the company.

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When we plan the future career of the employee,information will becollected from job analysis. Hence job analysis becomesimportant or

advantageous.

7. Labour relations :-When companies plan to add extra duties or delete certainduties froma job, they require the help of job analysis, when this activityissystematically done using job analysis the number ofproblems with unionmembers reduce and labour relations improve.

8. Health and safety:-Most companies prepare their own health and safety, plansandprograms based on job analysis. From the job analysiscompany identifiesthe risk factor on the job and based on the risk factor safetyequipments areprovided.

9.Acceptance of job offer :-When a person is given an offer/appointment letter theduties to beperformed by him are clearly mentioned in it, thisinformation is collectedfrom job analysis, which is why job analysis becomesimportant.

Methods of job analysis (5/10 marks)Def: - A job is defined as a collection of duties andresponsibilities which are giventogether to an individual employee. Job analysis is theprocess of studying andcollecting information relating to operations andresponsibilities of a specific job.

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There are different methods used by organization to collectinformation andconduct the job analysis.

These methods are

1. Personal observation :-In this method the observer actually observes the concernedworker.He makes a list of all the duties performed by the workerand the qualitiesrequired to perform those duties based on the informationcollected, jobanalysis is prepared.

2. Actual performance of the job :-In this method the observer who is in charge of preparingthe jobanalysis actually does the work himself. This gives him anidea of the skillrequired, the difficulty level of the job, the efforts requiredetc.

3. Interview method :-

In this method an interview of the employee is conducted. Agroup ofexperts conduct the interview. They ask questions about the

job, skilledlevels, and difficulty levels. They question and cross questionand collectinformation and based on this information job analysis isprepared.

4. Critical incident method :-In this method the employee is asked to write one or morecriticalincident that has taken place on the job. The incident willgive an idea aboutthe problem, how it was handled, qualities required anddifficulty levels etc.

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critical incident method gives an idea about the job and itsimportance. (acritical means important and incident means anything whichtakes place in

the job)

5. Questioner method :-In this method a questioner is provided to the employee andthey areasked to answer the questions in it. The questions may bemultiple choicequestions or open ended questions. The questions decidehow exactly the jobanalysis will be done. The method is effective because

people would thinktwice before putting anything in writing.

6. Log records :- (2 marks concept)Companies can ask employees to maintain log records and

jobanalysis can be done on the basis of information collectedfrom the logrecord. A log record is a book in which employees record

/write all theactivities performed by them on the job. The records areextensive as well asexhausted in nature and provide a fair idea about the dutiesandresponsibilities in any job.

7. HRD records :-Records of every employee are maintained by HRdepartment. Therecord contain details about educational qualification, nameof the job,number of years of experience, duties handled, any mistakescommitted inthe past and actions taken, number of promotions received,area of work,

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core competency area, etc. based on these records jobanalysis can be done.

2.Job design

Definitions: - (2marks)Job design is the process ofa) Deciding the contents of the job.b) Deciding methods to carry out the job.c) Deciding the relationship which exists in the organization.

Job analysis helps to develop job design and job designmatches the requirementsof the job with the human qualities required to do the job.

Factors affecting job design: - There are various factors

which affect job design inthe company. They can be explained with the help ofdiagram.

Factors affecting job design

Organizational EnvironmentalBehavioral

factors factors

factors

1. Task 1. Employee 1. Feed backcharacteristics availibity and

ability

2. Process or flow 2. Social and 2.Autonomyof work in cultural

organization expectations

3. Ergonomics ______ 3. Variety

4. Work practices

I] Organizational factors :-Organizational factors to refer to factors inside the

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organization which affectjob design they are

a) Task characteristics :-

Task characteristics refer to features of the job that isdepending onthe type of job and the duties involved in it the organizationwill decide, howthe job design must be done. Incase the company is not in aposition toappoint many people; a single job may have many dutiesand vice versa.

b) The process or flow of work in the organization :-

There is a certain order in which jobs are performed in thecompany.Incase the company wishes it could combine similar job andgive it to oneperson this can be done if all the jobs come one after theother in a sequence.

c) Ergonomics (2 marks concept) :-Ergonomics refers to matching the job with physical ability

andcharacteristics of the individual and in providing an officeenvironmentwhich will help the person to complete the jobs faster and ina comfortablemanner.

d) Work practices :-Every organization has different work practices. Although the

job maybe the same the method of doing the job differs fromcompany to company.

This is called work practice and it affects job design.

II] Environmental factors :-Environmental factors which affect job design are as follows

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it that certain amount of autonomy is provided to the workerso that hecarries his job effectively.

c) Variety :-When the same job is repeated again and again it leads toburden andmonotony. This leads to lack of interest and carelessness onthe job.

Therefore, while preparing job design certain amount ofvariety must beprovided to keep the person interested in the job.

Methods of job design

There are various methods in which job design can becarried out. Thesemethods help to analysis the job, to design the contents ofthe and to decide howthe job must be carried out .these methods are as follows :-(5 marks each)I.Job rotationII.Job enlargementIII.Job enrichment

I.Job Rotation :- (def 2 marks concept )Job rotation involves shifting a person from one job toanother, sothat he is able to understand and learn what each jobinvolves. The companytracks his performance on every job and decides whether hecan perform the

job in an ideal manner. Based on this he is finally given aparticular posting.

Job rotation is done to decide the final posting for theemployee e.g. Mr. A isassigned to the marketing department whole he learns allthe jobs to beperformed for marketing at his level in the organization.after this he is shifted

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to the sales department and to the finance department andso on. He is finallyplaced in the department in which he shows the bestperformance

Job rotation gives an idea about the jobs to be performed ateverylevel. Once a person is able to understand this he is in abetter understandingof the working of organization

Advantages of job rotation

1.Avoids monopoly :-Job rotation helps to avoid monopoly of job and enable the

employee to learn new things and therefore enjoy his job

2. Provides an opportunity to broaden ones knowledge :-Due to job rotation the person is able to learn different job intheorganization this broadens his knowledge

3. Avoiding fraudulent practice :-In an organization like bank jobs rotation is undertaken to

prevent employees from doing any kind of fraud i.e. if aperson ishandling a particular job for a very long time he will be ableto findloopholes in th system and use them for his benefit andindulge( participate ) in fraudulent practices job rotation avoids this.

Disadvantages of Job Rotation

1. Frequent interruption :-Job rotation results in frequent interruption of work .A personwho is doing a particular job and get it comfortable suddenlyfindshimself shifted to another job or department .this interruptsthe work in both

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the departments

2. Reduces uniformity in quality :-Quality of work done by a trained worker is different from

that of a new worker .when a new worker I shifted or rotatedin thedepartment, he takes time to learn the new job, makesmistakes in theprocess and affects the quality of the job.

3. Misunderstanding with the union member :-Sometimes job rotation may lead to misunderstanding withmembers of the union. The union might think thatemployees are

being harassed and more work is being taken from them. Inrealitythis is not the case.