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MBM 101
HUMAN RESOURCE MANAGEMENT
CONTENTS
PAGE NO.
ACKNOWLEDGEMENT
ii
PREFACE
iii
UNIT 1
INTRODUCTION
LESSON 1
LESSON 2
LESSON 3
UNIT 2
HR PROCESSES
LESSON 4
LESSON 5
LESSON 6
UNIT 3
LESSON 7
LESSON 8
LESSON 9
HRD AN OVERVIEW
TRAINING AND DEVELOPMENT
CAREER MANAGEMENT AND RETENTION STRATEGIES
UNIT 4
LESSON 10
LESSON 11
LESSON 12
UNIT 5
LESSON 13
LESSON 14
LESSON 15
TQM
ETHICS IN HR
CHALLENGES
UNIT 1: INTRODUCTION
LESSON 1 STRATEGIC ROLE OF HRM
LESSON 2 HR PLANNING
LESSON 3 JOB DESIGN AND JOB EVALUATION
STRUCTURE
1.0
OBJECTIVES
1.1
INTRODUCTION
1.2
1.3
1.4
1.5
1.6
1.7
CASE STUDY
1.8
TERMINAL QUESTIONS
1.0. OBJECTIVES
In this lesson you will be able to understand
1.1. INTRODUCTION
The word strategy, deriving from the Greek noun strategus, meaning
commander in chief, was first used in the English language in 1656. The
development and usage of the word suggests that it is composed of stratos
(army) and agein (to lead). In a management context, the word strategy has now
replaced the more traditional term long-term planning to denote a specific
pattern of decisions and actions
Strategic management appears as a cycle in which several activities follow and
feed upon one another. The strategic management process is typically
undertaken by the upper echelon of the organization in order to accomplish long
term performance goals. Strategic management is considered to be a continuous
activity that requires a constant adjustment major forces that impact its survival
and growth .It is concerned with proactive response by organizations in terms of
its Business, Market, Finance, HR plans to keep itself ahead of competition.
With the advent of new economy industries like IT and the mushrooming of the
service sector, organizations all over the world realized that human resources
must be viewed as a source of competitive advantage as opposed to treating it
much the same way in access to technology or capital is concerned. What this
means is that the practice of HRM is being viewed as something that promotes
the business objectives of the firms and not merely another factor in the way the
firm is managed.
programs in the long run and often globally. Therefore the primary goal of
strategic human resources is to increase employee productivity by focusing on
business obstacles that occur outside of human resources. The primary actions
of a strategic human resource manager are to identify key HR areas where
strategies can be implemented in the long run to improve the overall employee
motivation and productivity. Communication between HR and top management of
the company is vital as without active participation no cooperation is possible.
The key features of Strategic HR are
Employee regarded as long term Asset: People are seen as long term assets
and retained with better working conditions and proper culture of recognition
and growth
Hence an organizations HR policies and practices must fit with its business
strategy so as to constantly meet the challenges of its competitive business
environment.
Source: A Strategic Human Resource Management System for the 21st Century. Naval Personnel Task Force, September 2000
First, the planning process is more agile; changes in plans are much more
frequent and are often driven by events rather than made on a predetermined
time schedule.
Third, the planning process is no longer exclusively top-down; input into the
process comes from many different organizational levels and segments. This
creates more employee ownership of the plan and capitalises on the fact that
often the most valuable business intelligence can come from employees who
are at the bottom of the organizational hierarchy.
Lastly, the strategic planning process less reactive and more driven by line
leadership.
Cross-cultural issues
SHRM also reflects some of the main contemporary challenges faced by Human
Resource Management: Aligning HR with core business strategy, demographic
trends on employment and the labor market, integrating soft skills in HRD and
finally Knowledge Management.
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LESSON 2 HR PLANNING
STRUCTURE
2.0
OBJECTIVES
2.1
INTRODUCTION
2.2
2.3
2.4
2.5
2.6
2.7
CASE STUDY
2.8
2.9
TERMINAL QUESTIONS
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2.0. OBJECTIVES
In this lesson you will be able to understand
The concept of Human Resource Planning and its aims and its relationship
with business strategy
The factors that affect the manpower planning forecasts in current era of
competitiveness
2.1. INTRODUCTION
Whenever an organization is in the process of determining its human resource
needs, it is engaged in a process we call Human Resource Planning. Human
resource planning is one of the most important elements in a successful human
resource management program, because it is a process by which an
organization ensures that it has the right number and kinds of people, at the right
place, at the right time, capable of effectively and efficiently completing those
tasks that will help the organization achieve its overall strategic objectives.
Employment planning, then, ultimately translates the organization's overall goals
into the number and types of workers needed to meet those goals. Without clearcut planning, and a direct linkage to the organization's strategic direction,
estimations of an organization's human resource needs are reduced to mere
guesswork.
This means that employment planning cannot exist in isolation. It must be linked
to the organization's overall strategy. Just a few decades ago, outside of possibly
the firm's top executives, few employees in a typical firm really knew about the
company's long-range objectives. The strategic efforts were often no more than
an educated guess in determining the organization's direction. But things are
different today. Aggressive domestic and global competition, for instance, have
made strategic planning virtually mandatory.
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To project the number of people required with appropriate skills expertise and
competencies for future requirements.
Shortages and surpluses can be identified so that quick action can be taken
wherever required.
All the recruitment and selection programs are based on manpower planning.
It also helps to reduce the labour cost as excess staff can be identified and
thereby overstaffing can be avoided.
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These strategies and programs are monitored and evaluated on a regular basis
to ensure that they are moving the organizations in the desired direction,
including closing employee competency gaps, and corrections are made as
needed.
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How many staff will be required to achieve the strategic goals of the
organization?
What jobs will need to be filled?
What skill sets will people need?
When forecasting demands for HR, it is also important to assess the challenges
in meeting the staffing need based on the external environment.
2.4.3. GAP ANALYSIS
The next step is to determine the gap between where your organization wants to
be in the future and where it is now. The gap analysis includes identifying the
number of staff and the skills and abilities required in the future in comparison to
the current situation. One should also look at all your organization's HR
management practices to identify practices that could be improved or new
practices needed to support the organization's capacity to move forward.
Questions to be answered include:
Restructuring strategies
Training and development strategies
Recruitment strategies
Outsourcing strategies
Collaboration strategies
Restructuring strategies:
This strategy includes reducing staff either by termination or attrition, regrouping
tasks to create well designed jobs, reorganizing work units to be more efficient.
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They support compensation plans that reward managers for managing everlarger staffs.
They validate and institutionalize present planning processes and the usual
ways of doing things.
Environmental uncertainties
Time Horizon
Outsourcing
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2.10. REFERENCES
READING
AND
SUGGESTED
FURTHER
http://hrcouncil.ca/hr-toolkit/planning-strategic.cfm
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http://www.egyankosh.ac.in/bitstream/123456789/35834/1/MTM2-03.pdf
http://www.managementstudyguide.com/manpower-planning.htm
http://www.scribd.com/doc/37629972/38/Manpower-Forecasting-Techniques
2.11. GLOSSARY
Succession Planning: Succession planning is a process for identifying and
developing internal people with the potential to fill key business leadership
positions in the company. Succession planning increases the availability of
experienced and capable employees that are prepared to assume these roles as
they become available. Taken narrowly, "replacement planning" for key roles is
the heart of succession planning.
Career Development: Career development involves managing your career
either within or between organizations. It also includes learning new skills, and
making improvements to help you in your career. Career development is an
ongoing, lifelong process to help you learn and achieve more in your career.
Attrition: Attrition is the rate at which organizations and/or company's hiring and
fire employees to either represent their firm or leave their firms. It it also referred
to the employee turnover rate.
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OBJECTIVES
3.1
INTRODUCTION
3.2
JOB ANALYSIS
3.2.1 MEANING OF JOB ANALYSIS
3.2.2 IMPORTANCE OF JOB ANALYSIS
3.2.3 PURPOSE OF JOB ANALYSIS
3.3
JOB DESIGN
3.3.1 MEANING AND IMPORTANCE OF JOB DESIGN
3.3.2 BENEFITS OF JOB DESIGN
3.3.3 FACTORS AFFECTING JOB DESIGN
3.4
3.5
JOB EVALUATION
3.6
INTERNET EXERCISES
3.8
TERMINAL QUESTIONS
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3.0. OBJECTIVES
In this lesson you will be able to understand
The meaning of job design and its importance for the management as well as
the employee/worker.
The concept of job design and how it is used to create job descriptions, job
specifications and job evaluations.
The functions of Job Design and the techniques of Job design Managers use
to improve productivity.
The meaning and definition of the term Job Evaluation and its methods.
3.1. INTRODUCTION
Job Analysis is a systematic exploration, study and recording the responsibilities,
duties, skills, accountabilities, work environment and ability requirements of a
specific job. It also involves determining the relative importance of the duties,
responsibilities and physical and emotional skills for a given job. All these factors
identify what a job demands and what an employee must possess to perform a
job productively.
Job design follows job analysis i.e. it is the next step after job analysis. It aims at
outlining and organizing tasks, duties and responsibilities into a single unit of
work for the achievement of certain objectives. It also outlines the methods and
relationships that are essential for the success of a certain job. In simpler terms it
refers to the what, how much, how many and the order of the tasks for a job/s.
Job design essentially involves integrating job responsibilities or content and
certain qualifications that are required to perform the same. It outlines the job
responsibilities very clearly and also helps in attracting the right candidates to the
right job. Further it also makes the job look interesting and specialized.
Job evaluation as evident from the word itself aims at evaluating the job and not
the person. It is a process of evaluating and determining the value of the job for
an organization. The evaluation is always in relative and not absolute terms. The
idea is evaluate a certain job against other jobs in the organization so that a fair
compensation system against various bands or levels can be established.
Organizations use various ways to evaluate jobs for arriving upon a
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compensation scheme. They vary with the size of the organization and the kind
of industry they operate in. Job ranking, pair comparison and benchmarking are
the various ways of evaluation.
Lets study these concepts in more detail.
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Training and Development: Job Analysis can be used to assess the training
and development needs of employees. The difference between the expected
and actual output determines the level of training that need to be imparted to
employees. It also helps in deciding the training content, tools and
equipments to be used to conduct training and methods of training.
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The above mentioned are factors that if not taken care of result into building
stress within the employees.
3.3.2. BENEFITS OF JOB DESIGN
The following are the benefits of a good job design:
1. Employee Input: A good job design enables a good job feedback. Employees
have the option to vary tasks as per their personal and social needs, habits
and circumstances in the workplace.
2. Employee Training: Training is an integral part of job design. Contrary to the
philosophy of leave them alone job design lays due emphasis on training
people so that are well aware of what their job demands and how it is to be
done.
3. Work / Rest Schedules: Job design offers good work and rest schedule by
clearly defining the number of hours an individual has to spend in his/her job.
4. Adjustments: A good job designs allows for adjustments for physically
demanding jobs by minimizing the energy spent doing the job and by aligning
the manpower requirements for the same.
Job design is a continuous and ever evolving process that is aimed at helping
employees make adjustments with the changes in the workplace. The end goal is
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Though preparing job description and job specification are not legal requirements
yet play a vital role in getting the desired outcome. These data sets help in
determining the necessity, worth and scope of a specific job.
1.4.1 JOB DESCRIPTION
Job description includes basic job-related data that is useful to advertise a
specific job and attract a pool of talent. It includes information such as job title,
job location, reporting to and of employees, job summary, nature and objectives
of a job, tasks and duties to be performed, working conditions, machines, tools
and equipments to be used by a prospective worker and hazards involved in it.
Purpose of Job Description
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Job Specification gives detailed information about any job including job
responsibilities, desired technical and physical skills, conversational ability
and much more.
Job description and job specification are two integral parts of job analysis. They
define a job fully and guide both employer and employee on how to go about the
whole process of recruitment and selection. Both data sets are extremely
relevant for creating a right fit between job and talent, evaluate performance and
analyze training needs and measuring the worth of a particular job.
difficulty in performing them. The jobs are examined as a whole rather than on
the basis of important factors in the job; the job at the top of the list has the
highest value and obviously the job at the bottom of the list will have the lowest
value. Jobs are usually ranked in each department and then the department
rankings are combined to develop an organizational ranking. The following table
is a hypothetical illustration of ranking of jobs. The variation in payment of
salaries depends on the variation of the nature of the job performed by the
employees. The ranking method is simple to understand and practice and it is
best suited for a small organization. Its simplicity however works to its
disadvantage in big organizations because rankings are difficult to develop in a
large, complex organization. Moreover, this kind of ranking is highly subjective in
nature and may offend many employees. Therefore, a more scientific and fruitful
way of job evaluation is called for.
Classification Method
According to this method, a predetermined number of job groups or job classes
are established and jobs are assigned to these classifications. This method
places groups of jobs into job classes or job grades. Separate classes may
include office, clerical, managerial, personnel, etc. Following is a brief description
of such a classification in an office.
a. Class I - Executives: Further classification under this category may be Office
Manager, Deputy office manager, Office superintendent, Departmental
supervisor, etc.
b. Class II - Skilled workers: Under this category may come the Purchasing
assistant, Cashier, Receipts clerk, etc.
c. Class III - Semiskilled workers: Under this category may come Stenotypists,
Machine-operators, Switchboard operator etc.
d. Class IV - Semiskilled workers: This category comprises Daftaris, File clerks,
Office boys, etc.
The job classification method is less subjective when compared to the earlier
ranking method. The system is very easy to understand and acceptable to almost
all employees without hesitation. One strong point in favor of the method is that it
takes into account all the factors that a job comprises. This system can be
effectively used for a variety of jobs. The weaknesses of the job classification
method are:
Even when the requirements of different jobs differ, they may be combined into
a single category, depending on the status a job carries.
It is difficult to write all-inclusive descriptions of a grade.
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a. Select key jobs. Identify the factors common to all the identified jobs such as
skill, effort, responsibility, etc.
b. Divide each major factor into a number of sub factors. Each sub factor is
defined and expressed clearly in the order of importance, preferably along a
scale.
The most frequent factors employed in point systems are (i) Skill (key factor);
Education and training required, Breadth/depth of experience required, Social
skills required, Problem-solving skills, Degree of discretion/use of judgment,
Creative thinking (ii) Responsibility/Accountability: Breadth of responsibility,
Specialized responsibility, Complexity of the work, Degree of freedom to act,
Number and nature of subordinate staff, Extent of accountability for
equipment/plant, Extent of accountability for product/materials; (iii) Effort: Mental
demands of a job, Physical demands of a job, Degree of potential stress
The educational requirements (sub factor) under the skill (key factor) may be
expressed thus in the order of importance.
c. Find the maximum number of points assigned to each job (after adding up the
point values of all sub-factors of such a job).
This would help in finding the relative worth of a job. For instance, the maximum
points assigned to an officer's job in a bank come to 540. The manager's job,
after adding up key factors + sub factors points, may be getting a point value of
say 650 from the job evaluation committee. This job is now priced at a higher
level.
d. Once the worth of a job in terms of total points is expressed, the points are
converted into money values keeping in view the hourly/daily wage rates. A
wage survey is usually undertaken to collect wage rates of certain key jobs in the
organisation.
Limitations of Job Evaluation
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3.8. REFERENCES
READING
AND
SUGGESTED
FURTHER
http://www.managementstudyguide.com/
http://en.wikipedia.org/wiki/Job_evaluation
3.9. GLOSSARY
Job Classification is a scheme of classifying a job according to the current
responsibilities and duties associated with the job. It is different than job design in
that the person assigned to the job is not taken into consideration.
Job Rotation is a management approach where employees are shifted between
two or more assignments or jobs at regular intervals of time in order to expose
them to all verticals of an organization.
Job Enrichment is the process of making a job more interesting, challenging
and satisfying for the employees. It can either be in the form of up gradation of
responsibilities, increase in the range of influence and the challenges.
Job enlargement is a job design technique wherein there is an increase in the
number of tasks associated with a certain job. In other words, it means
increasing the scope of ones duties and responsibilities. The increase in scope is
quantitative in nature and not qualitative and at the same level.
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