HUMAN RESOURCE MANAGEMENT (HRM)

PERSONNEL MANAGEMENT

Traditionally the term personnel management was used to refer to the set of activities concerning the workforce which included staffing, payroll, contractual obligations and other administrative tasks. In this respect, personnel management encompasses the range of activities that are to do with managing the workforce rather than resources. Personnel Management is more administrative in nature and the Personnel Managers main job is to ensure that the needs of the workforce as they pertain to their immediate concerns are taken care of. Further, personnel managers typically played the role of mediators between the management and the employees and hence there was always the feeling that personnel management was not in tune with the objectives of the management.

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a)

According to Michael J. Jucius, Personnel Management is the field of management which has to do with planning, organizing, directing and controlling the functions of procuring, developing, maintaining and utilizing a labor force such thatObjectives for which the company is established are attained economically and effectively, Objectives of all levels of personnel are served to the highest possible degree,

b)

c)

Objectives of society are duly considered and served.

PM V/S HRM

INTRODUCTION TO HRM

What is Human Resource? According to Leon Megginson, the term human resources can be defined as , the total knowledge, skills, creative abilities, talents and aptitudes of an organization's workforce, as well as the values, attitudes and beliefs of the individuals involved. What is HRM? According to P Subba Rao, HRM is managing the functions of employing, developing and compensating human resources resulting in creating and developing human relations and utilization of human resources with a view to contribute proportionately to the organizational, individual and social goals.

ANALYZING THE HRM CONTEXT

THE PEST MODEL:

An interesting way to describe the external environment. It is a good tool to examine the general HRM context. It captures the four important elements that shape and influence broad HR decisions which are as follows: Political Economic Social/Cultural Technological

SCOPE OF HRM
CONTROL Human Resource Audit Human Resource Accounting Human Resource Information System

MAINTENANCE Remuneration Motivation Safety Social Security Industrial Relations Performance Appraisal

HRM

ACQUISITION Human Resource Planning Recruitment Selection Placement

DEVELOPMENT Training Career Development Organization Development Internal Mobility

OBJECTIVES OF HRM
To create and utilize an able and motivated workforce, to accomplish the basic organizational goals. To establish and maintain sound organizational structure and desirable working relationships among all the members of the organization. To create facilities and opportunities for individual or group development so as to match it with the growth of the organization. To maintain high employee morale by sustaining and improving various conditions and facilities. To strengthen and appreciate the human assets continuously by providing appropriate training.

CONTD
To identify and satisfy individual and group needs by providing adequate wages, incentives, benefits and social security. To provide an opportunity for expression and voice in management. To provide fair, acceptable and efficient leadership. To provide facilities and conditions of work and creation of favorable atmosphere for maintaining stability of employment.

FUNCTIONS OF HRM
The definition of HRM is based on what Managers do which is common to all organizations. Functions of HRM can be broadly classified into two categories:

Managerial Functions Operative Functions

IMPORTANCE OF HRM

The Evolving Business Paradigm:

One of the factors behind organizations giving a lot of attention to their people is the nature of the firms in the current business environment. The changed business landscape has come about as a result of a paradigm shift in the way businesses and firms view their employees as more than just resources and instead adopt a people first approach.

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Strategic Management and HRM:

There is a need to align organizational goals with that of the HR strategy to ensure that there is alignment of the people policies with that of the management objectives. This means that the HR department can no longer be viewed as an appendage of the firm but instead is a vital organ in ensuring organizational success.

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Importance of HRM for Organizational Success:

The practice of HRM needs to be integrated with the overall strategy to ensure effective use of people and provide better returns to the organizations in terms of ROI (Return on Investment) for every rupee or dollar spent on them. The idea here is to adopt a holistic perspective towards HRM that ensures that there are no piecemeal strategies and the HRM policy enmeshes itself fully with those of the organizational goals.

MANPOWER PLANNING (MPP)/ HUMAN RESOURCE PLANNING (HRP)

What is MP/ HRP? According to Leon C. Megginson, human resource planning is an integrated approach to performing the planning aspects of the personnel function in order to have a sufficient supply of adequately developed and motivated people to perform the duties and tasks required to meet organizational objectives and satisfy the individual needs and goals of organizational members.

NEED FOR HUMAN RESOURCE PLANNING (HRP)

Every organization has to plan for human resource due to:

The shortage of certain categories of employees and/or variety of skills despite the problems of unemployment. The rapid changes in technology, marketing, management, etc., and the consequent need for new skills and new categories of employees. The change in organization design and structure affecting manpower demand. The labor laws affecting the demand for and supply of labor. The involvement of lead time in manning the job with most suitable candidate.

OBJECTIVES OF HUMAN RESOURCE PLANNING (HRP)

To recruit and retain the human resource of required quantity and quality; To foresee the employee turnover and make the arrangements for minimizing turnover and filling up of consequent vacancies; To meet the needs of the programmes of expansion, diversification, etc.; To assess the surplus or shortage of human resources and take measures accordingly; To minimize imbalances caused due to non-availability of human resources of right kind, right number in right time and right place; To estimate the cost of human resources; and To make the best use of its human resources.

BENEFITS OF HUMAN RESOURCE PLANNING (HRP)

It checks the corporate plan of the organization. HRP offsets uncertainties. It helps to anticipate the cost of salary enhancement, better benefits, etc. To foresee the need for redundancy and plan to check it. To plan for physical facilities, working conditions and the volume of benefits like canteen, conveyance, quarters, etc. It helps to take steps to improve human resource contributions in the form of increased productivity, sales, turnover, etc.

JOB ANALYSIS

What is Job Analysis? The US Department of labor defined job analysis as the process of determining, by observation and study, and reporting pertinent information relating to the nature of a specific job. It is the determination of the tasks which comprise the job of the skills, knowledge, abilities and responsibilities required of the worker of a successful performance and which differentiate one job from all others.

NEED FOR JOB ANALYSIS

Management should determine the kind of employee required for a job and the number of people to be employed. The organization should also find out the right man for the right job in right time. The knowledge of the job is essential to perform these functions.

PROCESS OF JOB ANALYSIS

Collection of Background Information:

Background information consists of organization charts, and existing job descriptions.

Selection of Representative Position to be Analyzed:

It would be too difficult and time consuming to analyze all the jobs. So, the job analyst has to select some of the representative positions in order to analyze them.

Collection of Job Analysis Data:

This step involves actually analyzing a job by collecting data on features of the job, required employee behavior and human requirements.

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Developing a Job Description:

This step involves describing the contents of the job in terms of functions, duties, responsibilities, operations, etc.

Developing a Job Specification:

This step involves conversion of the Job description statements into a job specification. Job specification describes the personal qualities, traits, skills knowledge and background necessary for getting the job done.

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Developing Employee Specification:

This step involves conversion of specifications of human qualities under job specification into an employee specification. Employee specification describes physical and educational qualifications, experience, etc which specify that the candidate with these qualities possesses the minimum human qualities listed in the job specification.

JOB DESCRIPTION

What is Job Description? Job Description is an important document which is descriptive in nature and contains a statement of job analysis. It tells us what should be done, why it should be done and where it should be performed.

CONTENT OF JOB DESCRIPTION

Service / Function Title Role description

Project Management Management Trainee

Will be responsible for the successful execution and implementation of Research projects. This would involve working closely with Researchers / Clients in the US / UK - understanding Research Design, planning, co-ordinating and executing the project along with other team members. This profile requires the person to understand the clients requirements and then facilitate the same by undertaking project planning, scheduling, translation of the survey requirements to the programmers and ensuring timely and high quality data collection / analysis. Mumbai US / UK time zone Maybe required to travel to US / UK for training / orientation / review Rs. 400,000 p.a. Rs.450,000 p.a. January 2012, would undergo appropriate training thereafter

Location, Working hours, Travel requirements Salary Date of joining

RECRUITMENT

What is Recruitment? Recruitment is defined as, a process to discover the sources of manpower to meet the requirements of the staffing schedule and to employ effective measures for attracting that manpower in adequate numbers to facilitate effective selection of an efficient workforce.

OBJECTIVES OF RECRUITMENT
To attract people with multi-dimensional skills and experiences that suit the present and future organizational strategies; To induct outsiders with a new perspective to lead the company; To infuse fresh blood at all levels of the organization; To search for talent globally and not just within the company; and To anticipate and find people for positions that do not exist yet.

SOURCES OF RECRUITMENT
SOURCES OF RECRUITMENT

INTERNAL SOURCES

EXTERNAL SOURCES

Present Permanent Employees Present Contract Employees Retired Employees Dependents of present/ retired/ deceased Employees Employee Referrals

Campus Consultants Public Employment Exchange Data Banks Job portals Head Hunting Trade Unions Mergers and Acquisitions Body Shopping

QUESTIONS TO BE ADDRESSED WHILE HIRING PEOPLE:

Has the vacancy been agreed by a responsible manager? Is there an up-to-date job description for the vacancy? What are the conditions of employment for the vacancy (salary, hours of work, fringe benefits, perquisites, holidays, etc.)? Has an employee specifications/candidates profile (in terms of physique, intelligence, aptitude, qualifications experience, etc.) been prepared? Has a notice of the vacancy been circulated internally?

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Has a job advertisement been agreed? Have details of the vacancy been forwarded to relevant agencies? Do all potential candidates (internal or external) know where to apply and in what form? What are arrangements for drawing up a shortlist of candidates? What about the interviewing dates and arrangements for selection of candidates? Have the short listed candidates or waitlisted candidates been informed sufficiently in advance and asked to furnish detailed references? Have unsuitable candidates or waitlisted candidates be informed of their position in a polite way thanking them for their interest and attendance?

SELECTION

What is Selection? Selection is the intention to choose the best qualified and suitable job candidate for each unfilled job. The objective of the selection decision is to choose the individual who can most successfully perform the job from the pool of qualified candidates.

FACTORS AFFECTING SELECTION DECISIONS

The goal of selection is to sort out or eliminate those judged unqualified to meet the job and organizational requirements, whereas the goal of recruitment is to create a large pool of persons available and willing to work. Thus, it is said that recruitment tends to be positive while selection tends to be somewhat negative. The following factors affect the selection decision of candidates:

Profile matching Organizational and social environment Successive Hurdles Multiple correlation

STEPS IN SCIENTIFIC SELECTION PROCESS

Job Analysis Recruitment Application Form Written Examination Preliminary Interview Business Games Tests Final Interview Medical Examination Reference Checks Line Managers Decision Employment

MOTIVATION

What is Motivation? Motivation represents an unsatisfied need which creates a state of tension or disequilibrium, causing the individual to move in a goal directed pattern towards restoring a state of equilibrium by satisfying the need. Motivation is a process that starts with a physiological or psychological deficiency or need that activates behavior or a drive that is aimed at a goal or incentive.

MOTIVATIONAL STRATEGIES

Empowering Employees:
Empowerment occurs when individuals in an organization are given autonomy, authority, trust, and encouragement to accomplish a task. In an attempt to empower and to change some of the old bureaucratic ideas, managers are promoting corporate intrapreneurships. Intrapreneurship encourages employees to pursue new ideas and gives them the authority to promote those ideas.

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Providing an effective Reward System:

People receive rewards in one of the following two ways:
Extrinsic rewards are externally administered. They are valued outcomes given to someone by another person, typically a supervisor or higher level manager. Common workplace examples are pay bonuses, promotions, time off, special assignments, office fixtures, awards, verbal praise, and so on. Intrinsic rewards are self-administered. Think of the natural high a person may experience after completing a job. That person feels good because she has a feeling of competency, personal development, and self-control over her work.

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An effective reward system has four elements:

Rewards need to satisfy the basic needs of all employees. Rewards need to be included in the system and be comparable to ones offered by a competitive organization in the same area. Rewards need to be available to people in the same positions and be distributed fairly and equitably. The overall reward system needs to be multifaceted. Because all people are different, managers must provide a range of rewardspay, time off, recognition, or promotion. In addition, managers should provide several different ways to earn these rewards.

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Redesigning jobs:
The concept of job redesign, requires a knowledge of and concern for the human qualities people bring with them to the organization, applies motivational theories to the structure of work for improving productivity and satisfaction. Job Enlargement: Often referred to as horizontal job loading, job enlargement increases the variety of tasks a job includes. Although it doesn't increase the quality or the challenge of those tasks, job enlargement may reduce some of the monotony, and as an employee's boredom decreases, his or her work quality generally increases.

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Job Rotation: This practice assigns people to different jobs or tasks to different people on a temporary basis. The idea is to add variety and to expose people to the dependence that one job has on other jobs. Job rotation can encourage higher levels of contributions and renew interest and enthusiasm. The organization benefits from a cross-trained workforce. Job Enrichment: Also called vertical job loading, this application includes not only an increased variety of tasks, but also provides an employee with more responsibility and authority. If the skills required to do the job are skills that match the jobholder's abilities, job enrichment may improve morale and performance.

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Creating Flexibility:
Today's employees value personal time. Because of family needs, a traditional nine-to-five workday may not work for many people. Therefore, flextime, which permits employees to set and control their own work hours, is one way that organizations are accommodating their employees' needs. Some of the options organizations are trying are as follows: Compressed Workweek: It is a form of flextime that allows a full-time job to be completed in less than the standard 40-hour, five-day workweek. Its most common form is the 4/40 schedule, which gives employees three days off each week.

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Job Sharing: It occurs when one full-time job is split between two or more persons. Job sharing often involves each person working one-half day, but it can also be done on weekly or monthly sharing arrangements. When jobs can be split and shared, organizations can benefit by employing talented people who would otherwise be unable to work full-time. Telecommuting or Flexiplace: It is a work arrangement that allows at least a portion of scheduled work hours to be completed outside of the office, with work-at-home as one of the options. Telecommuting frees the jobholder from needing to work fixed hours, wearing special work attire, enduring the normal constraints of commuting, and having direct contact with supervisors.

CONTD
Self Motivation:

Stay Active Hang Around with Motivated People Have a Goal Let Others Know Your Goal Get a Role Model Realize that we All have Bumps in the Road Read Motivational Quotes Take Bite Sized Pieces Do the Hardest Thing First Make it Fun

INCENTIVES SCHEMES

What is Incentives Schemes? According to Hummel and Nickerson, It refers to all the plans that provide extra pay for extra performance in addition to regular wages for a job. Incentives do not create but only aim to increase the national momentum towards productivity. Wage incentives are extra financial motivation.

OBJECTIVES OF INCENTIVE SCHEMES

To improve the profit of a firm through a reduction in the unit costs of labor and materials or both; To avoid or minimize additional capital investment for the expansion of production capacity; To increase a workers earnings without dragging the firm into a higher wage rate structure regardless of productivity and To use wage incentives as a useful tool for securing a better utilization of manpower, better production scheduling and performance control, and a more effective human resource policy.

EMPOWERMENT

What is Empowerment?
According to Newstrom and Davis, Empowerment is any process that provides greater autonomy through the sharing of relevant information and provision of control over factors affecting job performance. Employee empowerment means making him/her able to run the show by himself/ herself. The underlying logic behind empowerment is that by involving workers in those decisions that affect them and by increasing their autonomy and control over their work lives, employees will become more motivated, more committed to the organization, more productive and more satisfied with their jobs.

CONDITIONS NECESSARY FOR EMPOWERMENT

Participation Innovation

Information
Accountability

APPROACHES TO EMPOWERMENT

Helping employees achieve job mastery; Allowing more control;

Providing successful role models;

Using social reinforcement and persuasion; Giving emotional support.

FORMS OF EMPOWERMENT

Quality Circles (QCs): It is a work group of employees who meet regularly to discuss their quality problems, investigate causes, recommend solutions and take corrective actions. QC is formed to achieve the following objectives: Improvement in quality of product manufactured. Improvement in methods of production. Development of employees participating in QC. Promoting morale of employees. Respect humanity and create a happy work place.

FEATURES OF QC

Voluntary groups Small size

Regular meeting
Independent agenda Quality focused

PROBLEMS OF QCS

Negative Attitude Lack of Ability

Lack of Management Commitment

Non-implementation of Suggestions

CONTD
Empowered Teams: These teams are also referred to as self-directed or self managing teams. These are the groups that are given a large degree of decision-making autonomy and expected to control their own behavior and results. Characteristics of the empowered teams: They plan, set goals, supervise progress and improve the same; These teams prepare their own budgets and maintain coordination with other departments of organization. They are free to acquire any training which they feel necessary.

CONTD

They prepare their work schedules and then monitor the same. These teams take sole responsibility for achieving quality in their products and services, whatsoever be the case. These teams are also given right to share with management in decision-making process.

QUALITY OF WORK LIFE (QWL)

What is QWL?
QWL refers to the favorableness or unfavorableness of a total job environment for people. Factors that contribute to quality of work life are as follows: Job involvement Job Satisfaction Sense of Competence Job Performance and Productivity In general, there are two directions to improve QWL. One direction concerns the alleviation or removal of negative aspects of work and working conditions and the other direction concerns the modification of aspects of work and working conditions.

MORALE

What is Morale? Morale is defined as an overall state of groups emotional health, arousal and enthusiasm. The following important components determine the morale of a work group: A feeling of togetherness. Need for a clear goal or objective to be achieved. Expectation of success towards the attainment of the goal. Feeling of respect for each member within the group irrespective of the task assigned to him. Supportive and Stimulative leadership.

TRAINING & DEVELOPMENT

What is Training? Dale S Beach defined training as, The organized procedure by which people learn knowledge and/or skill for a definite purpose. Training improves, changes, moulds the employees knowledge, skill, behavior, aptitude and attitude towards the requirements of the job and organization.

NEED OF TRAINING
Training is needed to serve the following purposes:
Newly recruited employees require training so as to perform their tasks effectively. Instruction, guidance, coaching helps them to handle jobs competently, without any wastage. Existing employees require refresher training so as to keep abreast of the latest development in job operations. In the face of rapid technological changes, this is an absolute necessity. Training is necessary when a person moves from one job to another. After training the employee can change jobs quickly, improve his performance levels and achieve career goals comfortably. Training is necessary to make employees mobile and versatile. They can be placed on various jobs depending on organizational needs.

CONTD
Training is needed to bridge a gap between what the employee has and what the job demands. Training is needed to make employees more productive and useful in long-run. Training is needed for employees to gain acceptance from peers. Training is necessary to prepare existing employees for higher-level jobs.

IDENTIFICATION OF TRAINING NEEDS

Data Sources used in Training Needs Assessment Organizational

analysis Task analysis Job description

Person analysis

Organizational goals and objectives Personnel inventories Skills inventories Organizational climate analysis Efficiency indexes

Performance data or appraisals Interviews Tests Questionnaires

Job specifications Performance standards Performing the job

CONTD
Organizational analysis Task analysis Person analysis Customer/employee attitude surveys Training Rating scales Diaries, Devised situations, Assessment centers

Changes in systems Reviewing literature or subsystems on the job Management requests Exit interviews Customer survey/satisfaction data Asking questions about the job Training committees Analysis of operating problems

CONTD
Training needs can be identified through the following types of analysis.

(A) Organizational analysis:

The important elements that are closely examined in this connection are: Analysis of objectives Resource utilization analysis

Environmental scanning
Organizational climate analysis

CONTD
B) Task or Role analysis: This is a detailed examination of a job, its components, its various operations and conditions under which it has to be performed.

The focus here is on roles played by an individual and the training needed to perform such roles.
The whole exercise is meant to find out how various tasks have to be performed and what kind of skills, knowledge, attitudes are needed to meet the job needs.

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C) Person analysis: Here the focus is on a individual in a given job. There are three issues to be resolved through manpower analysis: Try to find out whether performance is satisfactory and training is required. Whether employee is capable of being trained and the specific areas in which training is needed. We need to state whether poor performers on the job need to be replaced by those who can do the job.

OBJECTIVES OF TRAINING

Objective
Innovative
Anticipating problems before they occur Team building sessions with the departments

Problem solving
Training clerks to reduce complaints Training supervisors in communications to reduce grievances

Regular
Orientation Recurring training of interviewers Refresher courses on safety procedures

BENEFITS OF TRAINING

Leads to improved profitability. Improve the job knowledge and skills at all levels of the organization. Improve the morale of the workforce. Helps employees adjust to change. Creates an appropriate climate for growth and communication. Organization gets more effective decision-making and problem solving. Helps prepare guidelines for work. Prepare employees to take up different roles in the organization. Improves the skills of employees so that they can perform their job more efficiently. Aids in increasing productivity and quality of work.

STAGES IN TRAINING

Needs Assessment

Program Design

Implementation

Organizational Analysis Departmental Analysis Job Analysis Employee Analysis

Instructional Objectives Learning Principles Teaching Principles Training Principles Content Design

On-the-job Methods Off-the-job Methods Characteristics of the Instructor Conduct the Program

Evaluation

Reactions Learning Job Behavior Ultimate Value

TRAINING METHODS
1. Job Instruction Training (JIT): Four steps followed in JIT are:

The trainee receives an overview of the job, its purpose and its desired outcomes, with a clear focus on the relevance of training. The trainer demonstrates the job in order to give the employee a model to copy. The trainer shows a right way to handle the job. Next, the employee is permitted to copy the trainers way. Demonstrations by trainer and practice by the trainee are repeated until the trainee masters the right way to handle the job. Finally, the employee does the job independently without supervision.

JIT
Merits
Trainee

Demerits
The

learns fast through practice and observation.

trainee should be as good as the trainer. If the trainer is not good, transference of knowledge and skills will be poor.
While

It

is economical as it does not require any special settings. Also, mistakes can be corrected immediately.
The

learning, trainee may damage equipment, waste materials, cause accidents frequently.
Experienced

trainee gains confidence quickly as he does the work himself in actual setting with help from supervisor.
It

workers cannot use the machinery while it is being used for training.

is most suitable for unskilled and semi-skilled jobs where the job operations are simple; easy to explain and demonstrate within a short span of time.

CONTD
2. Coaching:

Coaching is a kind of daily training and feedback given to employees by immediate supervisors. It involves a continuous process of learning by doing. It may be defined as an informal, unplanned training and development activity provided by supervisors and peers. In coaching supervisor explains things and answers questions; throws light on why things are done the way they are; offers a model for trainees to copy; conducts lot of decision making meetings with trainees; procedures are agreed upon and the trainee is given authority to make divisions and even commit mistakes.

COACHING
When to use coaching usefully? Coaching could be put to good use when:

An employee demonstrates a new competency An employee expresses interest in a different job within an organization An employee seeks feedback An employee needs help with a new skill following a formal training programme. An employee is expressing low morale, violating company policies or practices or having performance problems.

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3. Mentoring:

Mentoring is a relationship in which a senior manager in an organization assumes the responsibility for grooming a junior person. A mentor is a teacher, spouse, counselor, developer of skills and intellect, host, guide, exemplar, and most importantly, supporter and facilitator in the realization of the vision the young person has about the kind of life he wants as an adult. The main objective of mentoring is to help an employee attain psychological maturity and effectiveness and get integrated with the organization.

CONTD
Mentoring functions
Good mentors.
Listen

Good mentees
Listen Act

and understand Challenge and stimulate Coach Build self-confidence Provide wise counsel Teach by example Act as role model Share experiences Offer encouragement

Successful mentoring

on advise Show commitment to learn Check ego at the door Ask for feedback Are open minded Are willing to change Are proactive

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4. Off-the-job Methods: Off-the-job training methods are as follows:

Vestibule training Role playing Lecture method Conference/discussion approach Programmed instruction

TRAINING V/S DEVELOPMENT

Learning Dimension Meant for Training Operatives Development Executives

Focus
Scope

Current job
Individual employee

Current and future jobs

Work group or organization

Goal
Initiated by Content Time-frame

Fix current skill deficit

Management Specific job related information Immediate

Prepare for future work demands

The individual General knowledge Long term

MANAGEMENT DEVELOPMENT

What is Management Development? Management Development is a systematic process of growth and development by which managers develop their abilities to manage. It is concerned with improving performance of the managers by giving them opportunities for growth and development.

OBJECTIVE OF MANAGEMENT DEVELOPMENT

To improve the performance of the managers. To identify the people with the required potential and prepare them for senior positions. To increase the morale of the members of the management group. To improve thought process and analytical ability. To broaden the outlook of the executive regarding his role position and responsibilities. To stimulate creative thinking.

MANAGEMENT DEVELOPMENT
Essential Components of a Management Development Programme:
A) Analysis of organizational development needs:
The comparison of already existing talents with those that are required to meet the projected needs will help the top management to take a policy decision as to whether it wishes to fill those positions from within the organization or from outside resources. B) Appraisal of present management talents:

In order to make the above suggested comparison, a qualitative assessment of the existing executive talents should be made and an estimate of their potential for development should be added to that.
Only then can it be compared with the projected required talent.

CONTD
C) Inventory of management manpower:

This is prepared to have a complete set of information about each executive in each position.
Such information when analyzed, discloses the strengths as well as weaknesses or deficiencies of managers in certain functions relating to the future needs of the organizations. (D) Planning of individual development programmes: Guided by the results of the performance appraisal that indicates the strengths and weaknesses of each of the executives, this activity of planning of individual development programme can be performed.

CONTD
E) Establishment of development programmes It identifies developmental needs and requirements and establishes specific development programmes, like leadership courses, management games, sensitivity training etc.

F) Evaluation of results
Opinion surveys, tests, interviews, observation of trainee reactions, rating of the various components of training, etc., could be used to evaluate executive development programmes.

METHODS OF DEVELOPING MANAGERS

Decision making skills (a) In-basket (b) Business game (c) Case study (a) Role play Interpersonal Skills (b) Sensitivity training (c) Behavior Modeling (a) On-the-job Experiences Job knowledge (b) Coaching (c) Understudy Organizational knowledge (a) Job rotation (b) Multiple management (a) Special courses General knowledge (b) Special meetings (c) Specific readings Specific individual needs (a) Special projects (b) Committee assignments

CAREER PLANNING
Career planning is the process by which one selects career goals and the path to these goals. The major focus of career planning is on assisting the employees achieve a better match between personal goals and the opportunities that are realistically available in the organization. Career planning efforts need to pin-point and highlight those areas that offer psychological success instead of vertical growth. Career planning is not an event or end in itself, but a continuous process of developing human resources for achieving optimum results. Individual and organizational careers are not separate and distinct, therefore, organization should help the employees in career planning.

OBJECTIVES OF CAREER PLANNING

Attract and retain talent by offering careers, not jobs. Use human resources effectively and achieve greater productivity. Reduce employee turnover. Improve employee morale and motivation.

Meet the immediate and future human resource needs of the organization on a timely basis.

CAREER ANCHORS
Schein identified eight career anchors as follows:
(A) Managerial competence: People having this drive seek managerial positions that offer opportunities that offer for higher responsibility, decision making, power, etc. (B) Technical competence: People who have a strong technical or functional career anchor seem to make career choices based on the technical or functional content of the work, such as engineering or accounting. (C) Security: If your career anchor is security, then you are willing to do what is needed to maintain job security a decent income and a stable future in the form of a good retirement package.

CONTD
(D) Creativity: These people are driven by an overwhelming desire to do something that is entirely of their own making. For them, starting a new venture, working in a research lab, piloting a novel venture in a desert may be exciting alternatives, their idea of a creative vocation. (E) Autonomy: These people seek a career that offers freedom of action and independence. (F) Dedication to a cause: If this is your anchor, you focus on a cause that you believe is important. (G) Pure challenge: If this is your career anchor, you meet and overcome difficult barrier or obstacles. You basically seek novelty and variety in your work. (H) Life-style: If this is your career anchor, you seek to integrate personal, career and family goals. You choose job that enable you to fit all parts of your life together.

PROCESS OF CAREER PLANNING

(A)Identifying individual needs and aspirations: Most individuals do not have a clear cut idea about their career aspirations, anchors and goals. The HR professional must , therefore, help an employee by providing as much information as possible showing what kind of work would suit the employee most, taking his skills, experience and aptitude into account.

The basic purpose of such an exercise is to help an employee form a clear view about what he should do to build his career within the company.

CONTD
(B)Analyzing career opportunities: Career paths show career progression possibilities clearly. They indicate various positions that one could hold over a period of time. Career paths change over time, in tune with employees needs and organizational requirements.

While outlining a career path, the claims of experienced persons lacking professional degrees and that of young recruits with excellent degrees but without experience need to be balanced properly.

CONTD
(C) Aligning needs and opportunities:

After employees have identified their needs and have realized the existence of career opportunities the remaining problem is one of alignment.
This is a two step process: 1. Identify the potential of employees 2. Undertake career development programme Through performance appraisal, the potential of employees can be assessed to some extent. After identifying the potential of the employees using certain developmental techniques, understudy programmes can be undertaken to update employee knowledge and skills.

CONTD
(D) Action plans and periodic review:

The matching process would uncover gaps.

These need to be bridged through individual career development efforts and organization supported efforts from time to time. This will help employee know in which direction he is moving, what are likely to take place, what kind of skills are needed to face new and emerging organizational challenges. For organization also it is necessary to find out how employees are doing, what are their goals and aspirations, whether the career paths are in tune with individual needs and serve the overall corporate objectives, etc.

SUCCESSION PLANNING

What is Succession Planning?

Succession planning is the process of ensuring a suitable supply of successors for current and future senior or key jobs arising from business strategy, so that the careers of individuals can be planned and managed to optimize the organizations needs and the individuals aspirations.

The purpose of succession planning is to identify and develop people to replace current job holders in key positions. Succession planning encourages hiring from within and creates a healthy environment where employees have careers and not merely jobs.

CONTD
It helps identifying HR shortages and skill shortages before opening occurs. Preparing a schedule for succession is critical to the success of a company.

Complete dependence on succession from within or from outside is not desirable.

Internal candidates require a pat on the back when they do well. External candidates are needed for injecting fresh blood into the company.

SUCCESSION PLANNING CYCLE

Short Term

Succession Planning Model - RMX Business

Vision

Strategic Business Plan Long Term

Organizational Structure / Job Descriptions

Identify Key Positions

Potential Identification 5 Yrs Look Out Look Within 3 Yrs Identify Talent Succession Planning Components Existing Desired
Duration

Generic Core

Competencies

Employee History
Interest Past Performance Promotion Record Other Factors

Measurement
PMS Assessment 360 Feedback

Development
Job Rotation / Mentoring / Training / Special Projects Cross Functional Exposure

Successor 1
RMX Support Services
09.04.07

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Career Planning Vs Succession Planning
The terms career planning and succession planning are not synonymous, but they are similar. Succession planning is generally needs for key positions at higher levels, while career planning, by its very nature, includes a succession planning. The career paths for executives are identified. How people can grow vertically is also indicated. In case of a vacancy arising at any level, the career plan is well supported by a succession chart. Both are thus complimentary and interdependent.

SUCCESSION MANAGEMENT
Succession management, is used to examine existing managerial talent in light of future competencies, business needs and challenges. The basic purpose is to ensure that the right talent is available when needed and appropriate development experiences are provided for higher-level employees. It focuses on creating and stocking pools of candidates with high leadership potential. Succession plans do not go beyond identifying potentials successors. Succession management assures that key people are not just identified but also nurtured and developed into future leadership roles.

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Succession management includes following activities: (A) Identifying the shortage of leadership skills and defining the requirements:
With a view to identify the impending shortage of leadership skills, organizations have to estimate manpower requirements. This has to be followed by a clear-cut workload analysis to define the executive competencies required at various levels. Managerial judgement and a careful study of the past trends may serve as a useful guide in this regard.

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(B) Identifying potential successors for critical positions:
The next step is to find people with requisite talent to move into senior leadership roles. Since it is not possible to fast-track everyone, it is always better to define the critical success factors of important jobs initially and evaluate the high-potential successors against those benchmarks. The thumb rule is that ten percent of all managerial positions are critical.

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(C) Coach and groom the stars:
After identifying potential successor, the organization must devise ways to fast track their development. Enriching developmental activities must be thrown open to them. The identified high-fliers should be continually challenged and developed with demanding jobs intended to stretch their leadership competencies and enrich their experiences. Conscious efforts must be made to make fast trackers know how they are in the organization's future plans.

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In order to retain talent, the organization should:
Create a compelling vision to capture the heart of the employee. Talk to employee and find what they like best in their company and job. Experts say people are fascinated by career opportunities, learning experiences and challenging jobs. Offer these to people and create an employee-friendly environment. Get employees connected to the firm. Let them feel that their opinions matter a lot.

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Realize that emancipation is in. Empower people in every conceivable way. The management should encourage the attitude. Do not shoot people who err; but shoot those who do not take risks. Encourage employees to explore their interests, engage their curiosity and rotate them on various positions; train them continually and allow them to grow. Keep abreast of what the competitor is offering. Give enough to people so that they love their job.

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Continuous feed back forms must also be provided to them, so that they can compare their progress against peers in training sessions. Mentors and executive coaches could be designated to nurture, support and guide the efforts of such bright candidates.

(D)Secure top managements commitment and support:

The above development-oriented action plan would be fruitless if it does not enjoy consistent support and continued blessings from top management. Executive assessment, training, development and retention programmes, after all, demand lot of support from upstairs.

PERFORMANCE APPRAISAL

What is Performance Appraisal?

Performance Appraisal is a method of evaluating the behavior of employees, including both the quantitative and qualitative aspects of job performance. It is a systematic and objective way of evaluating both workrelated and potential of employees. Performance evaluation or Appraisal is the process of deciding how employees do their jobs. Performance refers to the degree of accomplishment of the tasks that make up an individuals job. Performance is always measured in terms of results.

OBJECTIVES OF PERFORMANCE APPRAISAL

Performance appraisal could be taken either for evaluating the performance of employees or for developing them. Developing healthy superior subordinate relationship, and offering appropriate counseling / coaching to the employee with a view to develop his potential in future. Appraisal of employees serves several useful purposes 1. Compensation decision 2. Promotion decisions 3. Training and development programmes 4. Feedback 5. Personal development

PERFORMANCE APPRAISAL PROCESS

Performance appraisal is planned, developed and implemented through a series of steps.
1. Establish performance standards: Appraisal systems require performance standards, which serve as benchmarks against which performance is measured. Performance standards must be clear to both appraiser and appraisee. Performance standards must be developed after a thorough analysis of the job.

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2. Communicate the standards: The appraiser should prepare JDs, help appraisee set his goals and targets, analyze results objectively, offer coaching and guidance to the appraisee whenever required and reward good results. The appraisee should be very clear about what he is doing and why he is doing it. For this purpose, performance standards must be communicated to appraises and their reactions should be noted down.

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3. Measure actual performance: This requires the use of dependable performance measures, the ratings used to evaluate performance. Performance measures to be helpful must be easy to use, reliable, and report on the critical behaviours that determine performance. Performance measures may be objective or subjective Common sources of information which are generally used by managers regarding how to measure actual performance are: 1. Personal observation 2. Statistical reports 3. Oral reports 4. Written report

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4. Compare actual performance with standards and discuss the appraisals: The assessment of another persons contribution and ability is not an easy task. It has serious emotional overtones as it effects the selfesteem of the appraisee. Any appraisal based on subjective criteria is likely to be questioned by the appraisee and leave him quite dejected and unhappy when the appraisal comes out to be negative.

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5. Taking corrective action, if necessary: Corrective action is of two types: one puts fire immediately, while other destroys the root of the problem permanently. Immediate actions sets things right and get things back on track whereas the basic corrective action gets to the source of deviations and seeks to adjust the difference permanently. Basic corrective steps seek to find out how and why performance deviates.

METHODS OF PERFORMANCE APPRAISAL

Performance Appraisal Methods
Other methods
12. 13. 14. 15. Group Appraisal HRA Assessment centre Field review

Individual evaluation methods

1. 2. 3. 4. 5. 6. Confidential report Essay evaluation Critical incidents Checklists Graphic rating scale Behaviorally anchored rating scales 7. Forced choice method 8. MBO

Multiple-person Evaluation methods

9. Ranking 10. Paired comparison 11. Forced distribution

INDIVIDUAL EVALUATION METHODS

1.Confidential report: It is mostly used in government organizations. It is descriptive report prepared, generally at the end of every year, by the employees immediate superior. The report highlights the strengths and weaknesses of the subordinate. Since the report is generally not made public and hence no feedback is available.

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2. Essay evaluation: Under this method, the rater is asked to express the strong as well as weak points of the employees behavior. This technique is normally used with a combination of the graphic rating scale.

While preparing an essay on the employee, the rater considers the following factors: 1. Job knowledge and potential of the employee. 2. Employees understanding of the companys programmes, policies, objectives etc. 3. The employee's relation with co-workers and superiors. 4. The employees general planning, organizing and controlling ability.

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This method is advantageous in at least one sense, i.e., the essay provides a good deal of information about the employee and also reveals more about the evaluator. The essay evaluation method has following limitations It is highly subjective. Some evaluators may be poor in writing essays on employee performance. The time of evaluator is costly.

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3. Critical incident technique: Under this method, the manager prepares lists of statements of every effective and ineffective behavior of an employee. These critical incidents or events represent the outstanding or poor behavior of employees on the job. At the end of the rating period, these recorded critical incidents are used in the evaluation of the workers performance.

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This method suffers, however, from the following limitations: Negative incidents may be more noticeable than positive incidents. The supervisors have a tendency to unload a series of complaints about incidents during an annual performance review session. It results in very close supervision which may not be liked by the employee. The recording of incidents may be a chore for the manager concerned, who may be too busy or forget to do it. Most frequently, the critical incidents method is applied to evaluate the performance of superiors.

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4. Checklists and weighted checklists: A checklist represents, a set of objectives or descriptive statements about the employee and his behavior. If the rater believes strongly that the employee possesses a particular listed trait, he checks the item; otherwise, he leaves the item blank.

A more recent variation of the checklist method is the weighted more heavily than others.
Under this, the value of each question may be weighted equally or certain questions may be weighted more heavily than others. The limitations of this method are: The rater may be biased This method is expensive and time consuming

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5. Graphic rating scale:

Under this method, a printed form, is used to evaluate the performance of the employee.
From the graphic scales, excerpts can be obtained about the performance standards of employees. It is easy to understand, easy to use and permits a statistical tabulation of scores of employees. This method may however, suffer from a long standing disadvantage.

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6. Behaviorally anchored rating scales: This method represents the latest innovation in performance appraisal. It is a combination of the rating scale and critical incident techniques of employee. The critical incidents serve as anchor statements on a scale and the rating form usually contains six to eight specifically defined performance dimensions. Developing BARS

Collect critical incidents Identify performance dimensions Reclassification of incidents Assigning scale values to the incidents Producing the final instrument

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Organizational Skills:
A good constructional order of material slides smoothly from one topic to another; design of course optimizes interest; students can easily follow organizational strategy; course outline followed. Follows a course syllabus; presents Follows a course syllabus; presents 10 lectures in a logical order; ties each lectures in a logical order; ties each lecture into the previous. lecture into the previous. 9 8
7
This instructor can be expected to announce at the end of each lecture the material that will be covered during the next class period.

6
Prepares a course syllabus but only follows it occasionally; presents lectures in no particular order, although does tie them together. 5 4 3 2 Makes no use of a course syllabus; lectures on topics randomly with no logical order. 1
This instructor could be expected to be sidetracked at least once a week in lecture and not cover the intended material This instructor could be expected to lecture a good deal of the time about subjects other than the subject he is supposed to lecture on

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7. Forced choice method: The primary purpose of this method is to correct the tendency of a rater to give consistently high or low ratings to all employees The overall objectivity is increased by using this method in evaluation of employees performance. This is a expensive method. Managers may feel frustrated rating the employees in the dark.

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8. Management by objectives (MBO): MBO requires the management to set specific, measurable goals with each employee and then periodically discuss the latter's progress towards these goals. This technique emphasizes anticipatively set goals

MBO focuses attention on what must be accomplished rather than how it is to be accomplished.
It is, thus, a kind of goal setting and appraisal programme involving six steps: Set the organization's goals Set departmental goals Discuss departmental goals Define expected results Performance reviews Provide feedback

MULTIPLE EVALUATION TECHNIQUES

9. Ranking method: Under this method, the ranking of an employee in a work group is done against that of another employee. The evaluator is asked to rate employees from highest to lowest on some overall criterion. It is easier to rank the best and the worst employees, but very difficult to rank average employees. Limitations: The whole man is compared with another whole man in this method. This method speaks only of the position where an employee stands in his group. When large number of employees are working, ranking of individual becomes a vexing issue. There is no systematic method for ranking individuals in the organization.

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10. Paired comparison method: Each worker is compared with all other employees in the group; for every trait, the worker is compared with all other employees. For several individual traits, paired comparisons are made, tabulated and then rank is assigned to each worker. This method is not applicable when group is large.

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11. Forced distribution method: Under this system, the rater is asked to appraise the employee according to a predetermined distribution scale. The raters bias is sought to be eliminated here. Normally, two criteria used here for rating are the job performance and promotability. The problem of making use of different raters with different scales is avoided. This method is appreciated for eliminating rater bias. However, this method may result in low morale, low productivity and high absenteeism.

OTHER METHODS
12. Group appraisal: In this method, an employee is appraised by a group of appraisers. This group consists of the immediate supervisors of the employee. This group uses any one of multiple techniques discussed earlier. This method eliminates personal bias to a large extent, as performance is evaluated by multiple raters.

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13. Human resource accounting: This is a sophisticated way to measure the effectiveness of personnel management activities and the use of people as an organizational resources It tries to place a value on organizational human resources as an asset and not as an expense. Employee performance is evaluated in terms of costs and contributions of employees.

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14. Assessment centre: This is not a technique of performance appraisal by itself. It is a system, where assessment of several individuals is done by various experts using various techniques. Individuals from various departments are brought together to spend two or three days working on individual or group assignments similar to ones they will be handling when promoted. Observers rank performance of each participant in order of merit.

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15. Field review method: In this method, a trained, skilled representative of the HR department goes into a field and assists line supervisors with their ratings of their respective subordinates. The HR specialist requests from the immediate supervisor specific information about the employees performance. The ratings are done on standardized forms.

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360 Degree Feedback System: A 360 degree feedback, system collects performance information from multiple parties, including ones subordinates peers, supervisor and customers. Although originally developed as a fact finding and self correction technique, the 360 degree feedback is also currently used to design promotion and reward. A major advantage of this system is that the feedback comes from multiple sources

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Merits

Demerits

Evaluates methods applied to achieve targets.

Ignores performance in terms of reaching goals

Reveals strengths and weaknesses in management styles.

Forces inflexible managers to initiate self-change.

Colleagues responses tend to be biased.

Assesses deny the truth of negative feedback. The system can be used to humiliate people . Linking findings to rewards can prove to be unfair.

Creates an atmosphere of teamwork. Unearths truths about organizational cultural and ambience.

ORGANIZATIONAL CHANGE

The term Organizational Change implies the creation of imbalances in the existent pattern or situation.
Change requires individuals and organizations to make new adjustments. Change could be both proactive and reactive. Changes can be broadly divided into Work Change and Organizational Change. Reasons for Change: Changes in business conditions Changes in Managerial Personnel Deficiency in existing Organizational Patterns Technological and Psychological reasons Government Policy Size of the Organization

RESISTANCE TO CHANGE
Man always fears the unknown, and a change represents the unknown.

Economic Reasons: Fear of Reduction in Employment Fear of Demotion Fear of Workload Personal Reasons: Need for Training Boredom and Monotony No participation in Change Social Reasons: Need for New Social Adjustment Taking Change as Imposed from Outside Other Considerations

TECHNOLOGY AND CHANGE

The impact of technology on human resources is significant, direct and complex. The impact of technology on HRD is through: Jobs becoming intellectual Need for multi-professional managers Change in Organization Structure TQM Business Process Re-engineering

CHANGE AGENTS
Change agents are, People who act as catalysts and assume the responsibility for managing change activities. Change agents foresee the possible changes in technology, product and markets, plan for modifications in the organization and implement the modifications. The activities of change agents include: Changing organizational structure Changing technology Changing the physical setting Changing people

CONDITIONS FAVORING CHANGE

MANAGEMENT Competition owing to Globalization Information Technology Declining Role of Trade Unions Growth in Technology Cases of Closure of Companies Change in Organizational Attitude towards Training and Training Expenditure Train Employees First, then the Trained Employees Invite Change

APPROACHES TO ORGANIZATIONAL CHANGE

Participation of Employees Planning for Change Protecting Employees Interests Group Dynamics Cautions and Slow Introduction Positive Motion Sharing the Benefits of Change Training and Development Career Planning and Development Organization Development

PRINCIPLES OF CHANGE
Management should follow the below mentioned principles of change: Understanding the change itself, its purpose, its benefits and then making them understood to the employees. Estimating the reasons for the possible resistance to change and preparing to allay their fears. Mindful of channels of authority. Preparedness for all the questions and criticism. Listening to the suggestions of employees and incorporating them in the change as far as possible. Creating interest in them, convincing them and preparing them. Keeping in touch with the process of change.

PLANNING AND IMPLEMENTING CHANGE

Change is viewed as the required three steps, viz., unfreezing, changing and re-freezing. Unfreezing means that old ideas and practices need to be cast aside so that the new ones can be learnt. Change is the step in which the new ideas and practices are learnt so that an employee can think and perform in new ways. Refreezing means what has been learnt is integrated into actual performance. Implementation is the institutionalization and internalization of a change after it has been accepted by the organization and a decision has been taken to accept and make it part of the ongoing activity.

MODEL OF IMPLEMENTATION OF CHANGE IN

THE ORGANIZATION
Support -Training -Resources -Commitment -Linkages

Planning
-Processes -Strategies

Monitoring -Implementation Team -Minimum Control -Feedback -Communication

Action

Adaptation -Coping with consequences

Institutionalization

Stabilization

ORGANIZATION DEVELOPMENT (OD)

What is Organization Development? According to Wendell L. French OD is a long term effort led by the top management, to improve an organizations visioning, empowerment, learning, & problem-solving processes, through an ongoing, collaborative management of organization culture-with special emphasis on the culture of the intact work teams & other team configurations-using the consultantfacilitator role & the theory & technology of applied behavioral science, including action research.

OBJECTIVES OF OD

Improve organizational performance as measured by profitability, market share and innovativeness. Make organizations better adaptive to its environment which always keeps on changing. Make the members willing face organizational problems and contribute creative solutions to the organizational problems. Improve internal behavior patterns such as interpersonal relations, intergroup relations, levels of trust and support among the role players. Understand own self and others, openness and meaningful communication and involvement in planning for organization development.

VALUES OF OD MOVEMENT
People are Basically Good Need for Confirmation and Support Accepting Differences among People Expressing Feelings and Emotions Authenticity, Openness and Directness Fostering Cooperation Giving Attention Confronting Conflict

THE OD PROCESS
Initial Diagnosis Data Collection Data Feedback and Confrontation Selection and Design of Interventions Implementation of Intervention Action Planning and Problem Solving Team Building Intergroup Development Evaluation and Follow-up

OD INTERVENTIONS/ TECHNIQUES
How to bring about OD? It is through interventions. Interventions are the set of structural activities in which selected organizational units, be individual or their groups, engaged with a task or a sequence of tasks.

OD interventions aimed at these three targets: Individual- Focused Interventions Organization and Group- Focused Interventions

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Individual- Focused Interventions: Sensitivity Training Skill Training

Job Redesign
Role Negotiation Career Planning Management Development Training

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Organization and Group- Focused Interventions: Survey Feedback Management by Objectives Quality of Work Life Team Building Process Consultation

MODELS OF OD

Lewins Change Model Action Research Model

Contemporary Adaptations of Action Research

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Lewins Change Model: Modification of those forces keeping a systems behavior stable i.e. one striving to maintain the status quo & other pushing for change. The 3 steps are: Unfreezing: Involves reducing the forces maintaining the organization's behavior at its present level. Moving: Shifts the behavior of the organization, department or individual to a new level. It involves intervening in the system to develop new behaviors, values & attitudes.

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Refreezing: Stabilizes the organization at a new state of equilibrium. It is frequently accomplished through the use of supporting mechanism that reinforce the new organizational state such as organizational culture, norms, policies & structures.

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Action Research Model: Process of diagnosing, taking action, rediagnosing & taking new action. It is powerful, seeking the ideas & energies of a large no. of people produces superior result.

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1.
2. 3. 4. 5. 6. 7. 8.

Problem identification Consultation with OD Data gathering & preliminary diagnosis Feedback to key client or group Joint diagnosis of problem Joint action planning Action Data gathering after action

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Contemporary Adaptations of Action Research: It is the modification of action research model. Both parties are co-learners in diagnosing the organization, designing changes & implementing & assessing them.
Choose positive subjects Collect positive stories with broad participation Examine data & develop possibility propositions Develop a vision with broad participation Develop action plans Evaluate

1. 2. 3. 4. 5. 6.

FACTORS INFLUENCING CHOICE OF AN OD

INTERVENTION

Applicability

Feasibility

Acceptability