Mission Vision

Mission tells how you are going to
achieve your goals / vision. It
defines your primary objective.
Ignites process
Mission talks about present
What do we do? ;
A mission represents a stmt.
Mission tells your long term goal
i.e. what you want to achieve or
where you want to see yourself in
future.
Helps in creating strategy
Vision talks about future
What our are hopes and dreams?
It represents a snapshot

Strategy : Overall plan to reach a goal.

Values : Major force that shapes one’s behavior.
Important and lasting beliefs or ideal.
It lays foundation of

Setting goals
MBO is a systematic and organized approach that allows management to
focus on achievable goals and to attain the best possible results from
available resources. MBO aims to increase organizational performance
by aligning the subordinate objectives throughout the organization with
the overall goals that management has set.
MBO involves setting:
1) Organizational goals.
2) Departmental goals.
3) Discuss departmental goals.
4) Set individual goals.
5) Give feedbacks.

Goals and objectives are written down for each level of the organization,
and individuals are given specific aims and targets.

S for Specific: There are several key factors which should be present in
the objectives that are set in order for them to be effective. They should
be specific. In other words, they should describe specifically the result
that is desired. Instead of "better customer service score," the objective
should be "improve the customer service score by 12 points using the
customer service survey."

M for Measurable: The second example is much more specific and also
addresses the second factor—measurable. In order to be able to use the
objectives as a part of a review process it should be very clear whether
the person met the objective or not.

A for Achievable: The next important factor to setting objectives is that

they be achievable. For instance, an objective which states "100 percent
customer satisfaction" isn't realistically achievable. It's not possible to
expect that everyone must be 100 percent satisfied with their service. A
goal of "12 percent improvement in customer satisfaction" is better—
but may still not be achievable if it's assigned to the database developer.
They aren't likely to have enough influence over the customer
interaction process to improve satisfaction by 12 percent.

R for Realistic: Realistic objectives are objectives that recognize factors

which cannot be controlled. Said another way, realistic goals are
potentially challenging but not so challenging that the chance of success
is small. They can be accomplished with the tools that the person has at
their disposal.

T for Time-based: The final factor for a good objective is that it is

time-based. In other words, it's not simply, "improve customer service
by 12 percent," it's "improve customer service by 12 percent within the
next 12 months." This is the final anchor in making the objective real
and tangible. This final factor is often implied in MBO setting. The
implied date is the date of the next review, when the employee will be
held accountable for the commitments that they've made through their
objectives.

 Business Strategy

A) Corporate strategy :

 Concentration is on single business.

 Diversification is done by adding new product line.
 Done by top level management.
 Vertical integration – expand by producing own raw material /
selling product directly.

B) Competitive Strategy

Cost leadership : A firm sets out to become the low cost producer in its
industry. A low cost producer must find and exploit all sources of cost
advantage. if a firm can achieve and sustain overall cost leadership, then
it will be an above average performer in its industry, provided it can
command prices at or near the industry average.
Differentiation : A firm seeks to be unique in its industry along some
dimensions that are widely valued by buyers. It selects one or more
attributes that many buyers in an industry perceive as important

C) Functional Strategy
It deals with how each dept. contributes to overall business strategy and
provide competitive edge.?
Objectives can be:
a) Profitability: producing net profit in business.
b) Market share : growing & holding market share
c) Product quality: Producing high quality products.

Strategic HRM: Strategic human resource management includes typical

human resource components such as hiring, discipline, and payroll, and
also involves working with employees in a collaborative manner to
boost retention, improve the quality of the work experience, and
maximize the mutual benefit of employment for both the employee and
the employer.
It involves:

 Recruitment
 Training & Development
 Compensations – Increments / Promotions
 Employee retention
Job Analysis: Organizations have jobs that need to be staffed. Helps to
identify duties of these positions and characterizes of people to hire for
them . It leads to
 Job specification
 Job Description

Job Analysis involves:

1. Collecting and recording job information.

2. Checking the job information for accuracy.
3. Writing job description based on information collected to
determine the skills, knowledge, abilities and activities required.
4. Updating and upgrading this information.

 Steps Involved In Job Analysis Process :

1. Information Collection: Information is obtained through different

methods such as interview, observation, questionnaire, critical
incidents etc. It is associated with preparation of plans and
programs and assignment of responsibilities to the concerned
person.

2. Review Background Information : previously collected

information is reviewed to design organizational charts, current
position descriptions and specifications, procedures, manuals and
process charts. These help in detailed assessment of job.
3. Selection Of Representative Position To Be Analyzed: Analyzing
all jobs at a time is complex and costly affair. So, only a
representative sample of jobs is selected for the purpose of detailed
analysis. Under it, the job analyst investigates to determine which
organization managers or employees require job analysis. He
should also determine for what purpose the job must be analyzed.

4. Analysis Of Job By Collecting Data: Under this step of job

analysis process, a job analyst obtains the data and information
related to the selected jobs. The information is collected on the job
activities, required employee behaviors, working conditions,
human traits and qualities, abilities of performing the job and other
various dimension of the job. Data can be collected either through
questionnaire, observation or interviews.

5. Develop Job Description: A job description schedule is developed

through the information collected in the above step. This is the
written statement which describes the prominent characteristics of
job along with duties, location and degree of risk involved in each
job.

6. Develop Job Specification: Last step of job analysis process under

which a detailed specification statement is prepared showing
minimum requirement of each job. A job specification summarizes
the personal qualities, traits, skills, knowledge, and background
required to perform specific task. It also involves the physical and
psychological attributes of the incumbent.
Uses of Job Analysis info :

 Recruitment & selection

 Compensation
 Training
 Performance Appraisals
 Discovering an unassigned duty

 Job Description involves :

 Job identification;
 Job summary;
 Relationships;
 Responsibilities and duties;
 Authority;
 Working conditions;
 Standards of performance;

 Job Specification involves :

 Experience;
 Qualifications;
 Skills/Competencies
  Methods of training

Cognitive methods :
Cognitive methods are more of giving theoretical training to the trainees.
The various methods under Cognitive approach provide the rules for
how to do something, written or verbal information, demonstrate
relationships among concepts, etc. These methods are associated with
changes in knowledge and attitude by stimulating learning.

 Training by Lectures
 Training by Demonstrations
 Training by Discussions
 Computer Based Training (CBT)
 Training by Intellegent Tutorial System(ITS)
 Training by Programmed Instruction (PI)
 Training by Virtual Reality

Behavioral methods
Giving practical training to the trainees. These methods are best used for
skill development.

 GAMES AND SIMULATIONS

 BEHAVIOR-MODELING
 BUSINESS GAMES
 CASE STUDIES
 EQUIPMENT STIMULATORS
 IN-BASKET TECHNIQUE
 ROLE PLAYS
 Management Development Method:
The more future oriented method and more concerned with
education of the employees.

On The Job Training :

 COACHING
 MENTORING
 JOB ROTATION
 JOB INSTRUCTION TECHNIQUE (JIT)

Off The Job training:

 SENSITIVITY TRAINING
 TRANSACTIONAL ANALYSIS
 STRAIGHT LECTURES/ LECTURES
 SIMULATION EXERCISES
 Evaluating Training
1. Reaction: Measuring the degree to which participants find
the training favorable, engaging and relevant to their jobs.
Helps you understand how well the training was received by
your audience. It also helps you improve the training for
future trainees, including identifying important areas or
topics that are missing from the training.

2. Learning: Measure what your trainees have learned. How

much has their knowledge increased as a result of the
training?

3. Behavior: valuate how far your trainees have changed their

behavior, based on the training they received. Specifically,
this looks at how trainees apply the information.

4. Results: You analyze the final results of your training. This

includes outcomes that you or your organization have
determined to be good for business, good for the employees,
or good for the bottom line.
Factors affecting Compensation

External Internal

Labour Market Business Strategy

Cost of living Job evaluation &

Society
The employee

Economy

Kind of business

Geographic Location
1) Labor Market: The demand for and supply of labor also influences the
employee compensation. The low wage is given, in case; the demand is less
than the supply of labor. On the other hand, high pay is fixed, in case; the
demand is more than the supply of labor.

2) Cost of Living: The cost of living index also influences the employee
compensation, in a way, that with the increase or fall in the general price level
and the consumer price index, the wage or salary is to be varied accordingly.

3) Productivity: The compensation increases with the increase in the production.

Thus, to earn more, the workers need to work on their efficiencies that can be
improved by way of factors which are beyond their control. The introduction
of new technology, new methods, better management techniques are some of
the factors that may result in the better employee performance, thereby
resulting in the enhanced productivity

4) Geographic Location:
Levels of employment / unemployment do not affect all regions of the nation
equally. Certain areas where the cost of living is high have historically paid higher
wages

INTERNAL:
1) Business Strategy: The organization’s strategy also influences the employee
compensation. In case the company wants the skilled workers, so as to
outshine the competitor, will offer more pay as compared to the others.
Whereas, if the company wants to go smooth and is managing with the
available workers, will give relatively less pay or equivalent to what others
are paying.
 2) Job Evaluation and Performance Appraisal: The job evaluation helps to have
a satisfactory differential pays for the different jobs. The performance
Appraisal helps an employee to earn extra on the basis of his performance.

3) Employee: The employee or a worker himself influences the compensation

in one of the following ways.

Performance: The better performance fetches more pay to the employee, and thus
with the increased compensation, they get motivated and perform their job more
efficiently.

Experience: As the employee devote his years in the organization, expects to get an
increased pay for his experience.

Potential: The potential is worthless if it gets unnoticed. Therefore, companies do

pay extra to the employees having better potential as compared to others.

 Elements of compensation

Fixed Reimbursement Variable pay Contribution

Basic Conveyance Incentives PF

DA LTA ESI

HRA Medical Gratuity

Statuory
CCA Telephone
bonus

Special Books & Medical

Allowance Periodicals Insurance

Accidental
Insurance
 Basic salary is the amount paid to an employee before any extras are added or
taken off, such as reductions because of salary sacrifice schemes (investments,
dues, etc.) or an increase due to overtime or a bonus. Allowances, such as internet
for home-based workers or contributions to phone usage, would also be added to
the basic sala

Base salary is a fixed amount of money paid to an employee by an employer in

return for work performed. Base salary does not include benefits, bonuses or any
other potential compensation from an employer. Base salary is paid, most
frequently, in a bi-weekly paycheck to an exempt or professional employee.

Variable Pay:

Incentives –
1. Individual Incentives include
 merit pay plans (annual increase, based on performance)
 Piecework plans (pay based on number of units produced
typically in a specified time period.)
 Time-savings bonuses and commissions.

2. Group / Team Incentives: Incentives can be offered to groups,

rather than individuals, when employees' tasks are interdependent and
require cooperation.

3. Plant-wide Incentives: Direct employee efforts toward

organizational goals (such as cost reduction)

Long term Incentives

 ESOP