Hrm Full Notes (1).docx

Human Resource Development  Definition: Human Resource Management (HRM) is the term used to describe formal systems devised for the management of people within an organization. The responsibilities of a human resource manager fall into three major areas: staffing, employee compensation and benefits, and defining/designing work.

 Evolution: Period before industrial revolution – The society was primarily an agriculture economy with limited production. Communication channel were limited. Period of industrial revolution (1750 to 1850) –Modernization and increased means of communication gave way to industrial setup. A department was set up to look into workers’ wages, welfare and other related issues. This led to emergence of personnel management. Post Industrial revolution – The term Human Resource Management saw a major evolution after 1850.

Role and Functions of HRM  Recruitment The process of finding and hiring the best-qualified candidate (from within or outside of an organization) for a job opening, in a timely and cost effective manner. The recruitment process includes analysing the requirements of a job, attracting employees to that job, screening and selecting applicants, hiring, and integrating the new employee to the organization. Sources of Recruitment

 Selection The process of interviewing and evaluating candidates for a specific job and selecting an individual for employment based on certain criteria. Employee selection can range from a very simple process to a very complicated process depending on the firm hiring and the position. Selection Process

Types of Selection Test- Exhibit -1       

Aptitude test Mental ability/mental intelligence test Mechanical aptitude test Psycho motor test Intelligence test Personality test Performance test

 Human Resource Development(HRD) It refers to the training and development programs provided by the organisation to increase the performance of an employee by improving their knowledge and skill set.

 Employee Training and Development It helps the employee in addressing the following issues 1. Addressing Weaknesses 2. Improved Employee Performance 3. Consistency 4. Employee Satisfaction

 Training Need Analysis(TNA) Training needs analysis is the process of identifying the training and development needs of employees and volunteers in an organization. It considers the strategic objectives of the organization as well as the individual’s career goals to determine training needs.

Types of TNA- Exhibit -2       

Organizational Analysis. Person Analysis. Work analysis / Task Analysis. Performance Analysis. Content Analysis. Training Suitability Analysis. Cost-Benefit Analysis.

Types of training methods – Exhibit-3       

On the job Training Off The job training Apprenticeship Training Vestibule Training or Training Centre Training Training Via Internship Beginners 1st Level Training Training Institute

The steps involved in TNA can be illustrated by the following figure

Some of the methods which can be used to carry out a TNA are: • Interviews with employees • Surveys • Appraisal to understand present skill levels • Focus group discussions

Kirkpatrick Model of Training Evaluation The Kirkpatrick Four-Level Training Evaluation Model helps trainers to measure the effectiveness of their training in an objective way. Four Levels include 1.Reaction 2.Learning 3.Behaviour 4.Results

 Performance Appraisal Performance Appraisal is the systematic evaluation of the performance of employees and to understand the abilities of a person for further growth and development.

Methods of Performance Appraisal-EXHIBIT-4

 Compensation Compensation refers to exchange but in monetary terms. It is Feedback given to employees for their work. It is the monetary value the organisation gives to the employee in return of their services.

 Benefits Employees today are not willing to work for cash alone, they need extra. This extra given to the employees is also known as fringe benefits. Employee Benefits are non-financial form of compensation offered in addition to cash salary to enrich workers lives.

Components of Compensation and Benefits- Exhibit-5

 Human Resource Planning Process by which management determines how an organization should movie from its current manpower to the desired man power position

 Challenges of HRM

Job Description A document that describes the general tasks or other related tasks and responsibilities. Job Analysis A process to identify and determine the details of a particular job and collect the data Methods of job analysis- Exhibit-6     

Observation Method Interview method Questionnaire Method Dairy Method Technical conference method

Job Design It is the next step of job analysis. It aims at outlining and organising the tasks, duties and responsibilities. Job Specification Focusing on specific area of expertise and division of work based upon the expertise. Job Rotation Job rotation is the systematic movement of employees from one job to another within the organization to achieve various human resources objectives such as orienting new employees, training employees, enhancing career development and preventing job boredom or burnout. Job Enlargement Job enlargement means increasing the scope of a job through extending the range of its job duties and responsibilities generally within the same level and periphery. Job enlargement involves combining various activities at the same level in the organization and adding them to the existing job. Job enrichment Job enrichment is a management concept that involves redesigning jobs so that they are more challenging to the employee and have less repetitive work. Job evaluation A job evaluation is a systematic way of determining the value/worth of a job in relation to other jobs in an organization. It tries to make a systematic

comparison between jobs to assess their relative worth for the purpose of establishing a rational pay structure. Job Hopping It is a pattern of changing companies every year or two as a result of something like company closure. Job Secondment a period of time when an employee is sent to work somewhere else temporarily, either to increase the number of workers there, to replace a worker, or to exchange experiences and skills Job Monotony Monotony is defined as boring sameness or a lack of variety and interest. When you do the exact same boring tasks at your job every single day, this is an example of monotony. Job Excellence It involves trying to put quality into everything you do, and this attitude tends to separate the achievers, who make rapid strides in their career from others. Job Satisfaction a feeling of fulfilment or enjoyment that a person derives from their job. Job Evaluation A job evaluation is a systematic way of determining the value/worth of a job in relation to other jobs in an organization. Job shadowing: Job shadowing is the name given to the opportunity for you to observe or “shadow” someone doing their job.

Types of Tests During Selection Process-Exhibit-1 Aptitude test: Aptitude tests are test which assess the potential and ability of a candidate. It enables to find out whether the candidate is suitable for the job. The job may be managerial technical or clerical. Mental ability/mental intelligence test: This test is used to measure the overall intelligence and intellectual ability of the candidate to deal with problems. It judges the decision making abilities. Mechanical aptitude test: -

This test deals with the ability of the candidate to do mechanical work. It is used to judge and measure the specialized knowledge and problem solving ability. It is used for technical and maintenance staff. Psycho motor test: This test judges the motor skills the hand and eye co-ordination and evaluates the ability to do jobs lie packing, quality testing, quality inspection etc. Intelligence test: This test measures the numerical skills and reasoning abilities of the candidates. Such abilities become important in decision making. The test consists of logical reasoning ability, data interpretation, comprehension skills and basic language skills. Personality test: In this test the emotional ability or the emotional quotient is tested. This test judges the ability to work in a group, inter personal skills, ability to understand and handle conflicts and judge motivation levels. This test is becoming very popular now days. Performance test: This test judges and evaluates the acquired knowledge and experience of the knowledge and experience of the individual and his speed and accuracy in performing a job. It is used to test performance of typist, data entry operators etc.

Types of Training Need Analysis-Exhibit -2 Organizational Analysis. An analysis of the business needs or other reasons the training is desired. An analysis of the organization's strategies, goals, and objectives  Who decides that he training be conducted  why a training program is seen as the recommended solution to a business problem  what the history of the organization has been with regard to employee training and other management interventions. Person Analysis. Analysis dealing with potential participants and instructors involved in the process.  who will receive the training?  their level of existing knowledge on the subject  their necessity of training  what is their learning style?  who will conduct the training?  Do the employees have required skills?

Work analysis / Task Analysis. Analysis of the tasks being performed. Also known as a task analysis or job analysis. This helps ensure that the training which is developed will include relevant links to the content of the job. Performance Analysis. Are the employees performing up to the established standard? If performance is below expectations, can training help to improve this performance? Is there a Performance Gap? Content Analysis. Analysis of documents, laws, procedures used on the job. It is important that the content of the training does not conflict or contradict job requirements. Training Suitability Analysis. Analysis of whether training is the desired solution. It is important to determine if training will be effective in its usage. Cost-Benefit Analysis. Analysis of the return on investment (ROI) of training.

Types of Training Methods-Exhibit-3 On the job Training Employee training at the place of work while he or she is doing the actual job. Usually a professional trainer (or sometimes an experienced employee) serves as the course instructor using hands-on training often supported by formal classroom training. Off The job training Employee training at a site away from the actual work environment. It often utilizes lectures, case studies, role playing, simulation, etc Apprenticeship Training An apprenticeship is a system of training a new generation of practitioners of a trade or profession with on-the-job training and often some accompanying study (classroom work and reading). Vestibule Training or Training Centre Training In a typical vestibule training situation used by a manufacturing business, less than ten trainees would be supervised by one skilled trainer, and the training provided simulates on the job training without compromising production speed or quality. Training Via Internship: Internship practically is like working but not for full term purpose and salary basically is low and they are called stipend. Beginners 1st Level Training:

Such training is given to the individuals who don’t have the advanced level knowledge about the work. Training Institute: The training institutes are actually built to give vocational training and etc. so that they can shape up the ones personality.

Methods of Performance Appraisal-EXHIBIT-4 Ranking Method: employee is compared with all others for the purpose of placing order of worth. The employees are ranked from the highest to the lowest or from the best to the worst. Paired Comparison: In this method, each employee is compared with other employees on one- on one basis, usually based on one trait only. The ratter is provided with a bunch of slips each coining pair of names, the ratter puts a tick mark against the employee whom he insiders the better of the two. The number of times this employee is compared as better with others determines his or her final ranking. Grading Method: In this method, there can be three or more categories established for employees: outstanding, satisfactory and unsatisfactory and graded accordingly. Forced-Choice Method: It contains a series of groups of statements, and ratter rates how effectively a statement describes each individual being evaluated which contains 2 positive statements and 2 negative statements. Each statement carries a score or weight, which the ratter is not aware of. Check-List Method: A series of statements, i.e., questions with their answers in ‘yes’ or ‘no’ are prepared by the HR department. Critical Incidents Method: In this method, the ratter focuses his or her attention on those key or critical behaviours that make the difference between performing a job in effective or ineffective manner. Graphic Rating Scale Method:

It is also known as linear rating scale. In this method, the printed appraisal form is used to appraise each employee. Essay Method: In this method, the ratter writes a narrative description on an employee’s strengths, weaknesses, past performance, potential and suggestions for improvement. Field Review Method: The review process is usually conducted by the personnel officer in the HR department when the ratter is suspected to be biased. Confidential Report: It is the traditional way of appraising employees mainly in the Government Departments. Evaluation is made by the immediate boss or supervisor for giving effect to promotion and transfer. Management by Objectives (MBO): MBO requires the manager to set goals with each employee and then periodically discuss his or her progress toward these goals. Behaviourally Anchored Rating Scales (BARS): BARS are descriptions of various degrees of behaviour with regard to a specific performance dimension. Assessment Centres: An assessment centre is a central location where managers come together to participate in well-designed simulated exercises. They are assessed by senior managers supplemented by the psychologists and the HR specialists for 2-3 days 360 – Degree Appraisal: Under 360 – degree appraisal, performance information such as employee’s skills, abilities and behaviours, is collected “all around” an employee, i.e., from his/her supervisors, subordinates, peers and even customers and clients. Cost Accounting Method: This method evaluates an employee’s performance from the monetary benefits the employee yields to his/her organisation. This is ascertained by establishing a relationship between the costs involved in retaining the employee, and the benefits an organisation derives from Him/her.

Components of Compensation and Benefits-Exhibit-5 Basic salary is the amount paid to employees before any reductions or increases due to overtime or bonus, allowances (internet usage for those who work from home or communication allowance) If the appointment of an employee is made on a pay scale, the basic salary may increase every year. Else, it remains fixed. Perquisite a benefit which one enjoys or is entitled to on account of one's job or position. Taxable Allowances are those allowances on which tax is charged. Some of them areTaxable Allowances: 1. Dearness Allowance: Dearness Allowance (DA) is an allowance paid to employees as a cost of living adjustment allowance paid to the employees to cope with inflation. DA paid to employees is fully taxable with salary. The IT Act mandates that tax liability for DA along with salary must be declared in the filed return. 2. Entertainment Allowance: Employees are allowed the lowest of the declared amount --one-fifth of basic salary, actual amount received as allowance or Rs. 5,000. This is an allowance provided to employees to reimburse the expenses incurred on the hospitality of customers. However, Government employees can claim exemption in the manner provided in section 16 (ii). All other employees have to pay tax on it. 3. Overtime Allowance: Employers may provide an overtime allowance to employees working over and above the regular work hours. This is called overtime and any allowance received for this is fully taxable. 4. City Compensatory Allowance: City Compensatory Allowance is paid to employees in an urban centre which may be highly expensive and to cope with the inflated living costs in the cities. This allowance is fully taxable. 5. Interim Allowance: When an employer gives any Interim Allowance in lieu of final allowance, this becomes fully taxable. 6. Project Allowance: When an employer provides an allowance to employees to meet project expenses, this is also fully taxable. 7. Tiffin/Meals Allowance: Sometimes employers may provide Tiffin/Meals Allowance to the employees. This is fully taxable. 8. Cash Allowance: When the employer provides a cash allowance like marriage allowance, bereavement allowance or holiday allowance, it becomes fully taxable. 9. Non-Practicing Allowance: When physicians are attached to Clinical Centres of the various Laboratories/Institutes, any non-practicing allowance paid to them become fully taxable.

10.Warden Allowance: When an employer pays an allowance to an employee working as a Warden I.e. Keeper in an educational Institute, the allowance received is fully taxable. 11.Servant Allowance: When an employer pays an employee to engage services of a servant, such an allowance is taxable. Reimbursement is a sum paid to cover money that has been spent or lost. Incentives are a payment or concession to stimulate greater output or investment.

Methods of job analysis- Exhibit-6 Observation Method: Observation is the method in which analyst or information collector watches keenly to the activities of employees or movements of machinery and equipment. Interview method: Interview is the face to face interaction between employees and job analyst to get the job analysis information. Analysts talk with employees and supervisors or ask them questions regarding job in their presence at work place Questionnaire Method: analyst prepares a set of questions to collect information. Such set of questions is sent to the employees. Employees return questionnaire form after filling up at their ease. Dairy Method: Employees are expected to make entry of all the incidents, accidents, major activities, coordination from different jobs in a diary. Analysts later study the diary of each employee and summarize the required information. Technical conference method: Under technical conference method, specialists in job analysis, experienced employees, technicians and extensive knowledge of the jobs are requested to attend the seminar or conference. From the discussion, all relevant information is recorded. Such information is more realistic and factual.