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HUMAN RESOURCE MANAGEMNTUNIT 1
Versatile Business School, Egmore, Chennai - 600 008
SYLLABUS
UNIT I
Introduction- Meaning- scope- objective- functions- policies & roles
and importance of Human Resource Management- Interaction with
other functional areas-HRM &HRD a comparative analysis- Human
Resource Management practices in India.
Versatile Business School, Egmore, Chennai - 600 008
DEFINITION
According to Edwin Flippo,
"Personnel Management is the
planning, organising, directing and
controlling of the procurement,
development, compensation,
integration and maintenance of
people for the purpose of contributing
to organizational, individual and
social goals".
Versatile Business School, Egmore, Chennai - 600 008
SCOPE OF HUMAN RESOURCE
MANAGEMENT
HRM in Personnel Management
HRM in Employee Welfare
HRM in Industrial Relations
SCOPE OF HRM
Versatile Business School, Egmore, Chennai - 600 008
HRM IN PERSONNEL MANAGEMENT
Manpower planning
Hiring (recruitment and selection)
Training and development
Induction and orientation
Transfer
Promotion
Compensation
Layoff and retrenchment
Versatile Business School, Egmore, Chennai - 600 008
HRM IN PERSONNEL MANAGEMENT
Employee productivity
Performance appraisal
Developing new skills
Disbursement of wages
Incentives, allowances
Traveling policies and
procedures
Other related courses of actions.
Versatile Business School, Egmore, Chennai - 600 008
HRM IN EMPLOYEE WELFARE
Working conditions and
amenities at workplace
Safety services, health
services, welfare funds, social
security and medical services
Safety officers
Eliminating workplace
hazards,
Support by top management,
Job safety,
Versatile Business School, Egmore, Chennai - 600 008
HRM IN EMPLOYEE WELFARE
Safeguarding machinery,
Cleanliness, proper
ventilation and lighting,
Sanitation,
Medical care,
Sickness benefits,
employment injury benefits,
Maternity benefits,
Unemployment benefits and
family benefits
Versatile Business School, Egmore, Chennai - 600 008
HRM IN INDUSTRIAL RELATIONS
Addressing grievances
and settling disputes
Maintain peace and
harmony in the
organization
Maintaining work
relations
Versatile Business School, Egmore, Chennai - 600 008
FEATURES OF HRM
As part of Management Discipline: Draws heavily from
management concept, principles, and techniques
As a Process: Planning, organizing, directing and controlling
As a continuous process: Requires a constant alertness and
awareness of human resources
Directed towards Achievement of Objectives: Concerned with
people in the organization both present and potential
Universal Existence: Relevant to all functional areas of
business
Versatile Business School, Egmore, Chennai - 600 008
OBJECTIVES OF HRM
OBJECTIVES
SOCIETAL
ORGANIZATIONAL
FUNCTIONAL
PERSONAL
Versatile Business School, Egmore, Chennai - 600 008
FUNCTIONS OF HRM
FUNCTIONS OF HRM
PROCUREMENT OF MANPOWER
T&D
COMPENSATION AND REWARD
INTEGRATION OF INTERESTS
MAINTENANCE OF MANPOWER
WELFARE FACILITIES
MISCELLANEOUS
FUNCTIONS
Versatile Business School, Egmore, Chennai - 600 008
MANAGERIAL FUNCTIONS OF HRM
Versatile Business School, Egmore, Chennai - 600 008
OPERATIONAL FUNCTIONS OF HRM
Versatile Business School, Egmore, Chennai - 600 008
ROLE OF HRM
Advisory Role Personnel Policies
Personnel Procedures
Service role
Audit role
Consultancy role
Facilitator role
Versatile Business School, Egmore, Chennai - 600 008
HUMAN RESOURCE POLICY
Policy is predetermined course of action established to guide
the performance of work towards accepted objectives.
In Organizational context “Policy is a statement or general
understanding which provides guidelines to member of the
organization for making decision in respect to any course of action.
Business Policy defines the scope or spheres within which decisions
can be taken.
Versatile Business School, Egmore, Chennai - 600 008
CHARACTERISTICS OF SOUND HR POLICIES
Relationship to organizational objectives
Planned formulation
Fair amount of clarity
Consistency
Balanced
Written
Communication
Versatile Business School, Egmore, Chennai - 600 008
CHARACTERISTICS OF SOUND HR POLICIES
Specific
Clear
Reliable/Uniform
Appropriate
Simple
Comprehensive
Flexible
Stable
Versatile Business School, Egmore, Chennai - 600 008
OBJECTIVES OF HR POLICY
To enable the organization to have adequate, competent and
trained personnel at all level.
To provide such conditions of employment that enable the
personnel to develop a sincere sense of unity with the
organization and to carry out their duties in the most willing
and effective manner.
Versatile Business School, Egmore, Chennai - 600 008
OBJECTIVES OF HR POLICY
To develop conditions for mutual trust and cooperation between
those who manage and who are managed at all levels.
To establish condition for developing personnel and utilization of
their full potential for their own and the organization.
To provide and create a sense of responsibilities, fundamental rights
of the employees and their dignity to those who directly deal with
human resources.
Versatile Business School, Egmore, Chennai - 600 008
TYPES OF POLICIES
ORIGINATED POLICIES
IMPOSED POLICY
APPEALED POLICY
SPECIFIC POLICY
Versatile Business School, Egmore, Chennai - 600 008
TYPES OF POLICIES
Originated policies: Made by top Management.
Appealed policies: Made on request to certain situation, or
if certain aspects are missing in the main policy.
Imposed policies: Imposed by Govt & authorities.
Specific Policy: Related to specific issues like Recruitment,
Transfer, Promotion etc.,
Versatile Business School, Egmore, Chennai - 600 008
ROLES AND RESPONSIBILITIES OF HR MANAGER
Humanitarian Role: Reminding moral and ethical obligations
to employees
Counselor: Consultations to employees about marital, health,
mental, physical and career problems.
Mediator: Playing the role of a peacemaker during disputes,
conflicts between individuals and groups and management.
Spokesman: To represent of the company because he has
better overall picture of his company’s operations.
Versatile Business School, Egmore, Chennai - 600 008
ROLES AND RESPONSIBILITIES OF HR MANAGER
Problem Solver: Solving problems of overall human
resource management and long-term organizational
planning.
Change Agent: Introducing and implementing
institutional changes and installing organizational
development programs
Management of Manpower Resources: Broadly
concerned with leadership both in the group and
individual relationships and labor-management relations.
Versatile Business School, Egmore, Chennai - 600 008
HUMAN RESOURCE DEVELOPMENT(HRD)
Human resource development (HRD) is a system of
developing in a continuous and planned way the
competencies of individual employees, groups, team and
the total organization to achieve objectives
Definition :
“HRD is a process of organizing and enhancing the
physical, mental and emotional capacities of individuals
for productive work”
Versatile Business School, Egmore, Chennai - 600 008
FEATURES OF HRD
Focus on Human resource
Development at four level
Continuous and planned
process
Versatile Business School, Egmore, Chennai - 600 008
PROCESS OF HRD
Existential process
Coping process
Empathic process
Building process
Collaborative process
Growth
process
Operates at the
individual level
Operates at the
Level of role
of an individual
operates at the
interactive level of
2 or more individuals
operates at
the group level
operates at the
Inter groups level
growth process
operates at the
system(i.e) department
Versatile Business School, Egmore, Chennai - 600 008
HRM VS. HRM
HRM deals with all aspects of
the human resources function
HRM is concerned with
recruitment, rewards among
others
HRM functions are mostly
formal
HRD is a sub section of HRM
HRD only deals with the
development part
HRD functions can be informal
like mentorships
HUMAN RESOURCE
MANAGEMENT
HUMAN RESOURCE DEVELOPMENT
Versatile Business School, Egmore, Chennai - 600 008
CHALLENGES OF HRM IN INDIAN ECONOMY
Globalization
Changing Demographics of Workforce
Changed employee expectations
New Industrial Relations
Renewed People Focus
Managing the Managers
Contribution to the success of organizations
Weaker Society interests
Corporate Reorganization
Versatile Business School, Egmore, Chennai - 600 008
STRATEGIC HUMAN RESOURCE
MANAGEMENT
Strategy:
A method or plan chosen to bring about a desired future, such
as achievement of a goal or solution to a problem.
Versatile Business School, Egmore, Chennai - 600 008
STRATEGIC MANAGEMENT
Strategic Management:
“A Process of formulating, implementing and evaluating business
strategies to achieve organizational objectives is called Strategic
Management”
Definition of Strategic Management:
“Strategic Management is that set of managerial decisions and
actions that determine the long-term performance of a corporation.
It includes environmental scanning, strategy formulation, strategy
implementation and evaluation and control.
Versatile Business School, Egmore, Chennai - 600 008
STEPS IN STRATEGIC MANAGEMENT
Evaluation & Control
Strategy Implementation
Strategy Formulation
Environmental Scanning
Versatile Business School, Egmore, Chennai - 600 008
IMPORTANCE & BENEFITS OF STRATEGIC
MANAGEMENT
Allows identification, prioritization and exploration of
opportunities.
Provides an objective view of management problems.
Represents framework for improved co-ordination and control
Minimizes the effects of adverse conditions and changes
Allows more effective allocation of time and resources
Versatile Business School, Egmore, Chennai - 600 008
IMPORTANCE & BENEFITS OF STRATEGIC
MANAGEMENT
Allows fewer resources and lesser time devoted to correcting
ad hoc decisions
Creates framework for internal communication
Helps to integrate the individual behaviors
Provides basis for the clarification of responsibilities
Encourages forward thinking
Encourages favorable attitude towards change.
Versatile Business School, Egmore, Chennai - 600 008
ROLE OF HRM IN STRATEGIC
MANAGEMENT
Role in Strategy Formulation
Role in Strategy Implementation
Versatile Business School, Egmore, Chennai - 600 008
STRATEGIC CHOICES
Change Management
Values
Maximize productivity
and efficiency
Activities directed to
competence building
Versatile Business School, Egmore, Chennai - 600 008
UNIT I ASSIGNMENT
Assignment:
HRM-Interaction with other functional areas
Part-I
Presentation (Individual)
Short written report
Part-II
Role Play (Team work)
Documentary
Versatile Business School, Egmore, Chennai - 600 008
HUMAN RESOURCE MANAGEMENT
UNIT II
Versatile Business School, Egmore, Chennai - 600 008
SYLLABUS
UNIT II
Human Resource Planning- Definition objectives-
process and importance Job analysis-Description-
specification & job evaluation.
Versatile Business School, Egmore, Chennai - 600 008
HUMAN RESOURCE PLANNING
Human Resource planning is process of striking the balance
between human resource required and acquired in an organization
HRP is a process by which an organization determines how it
should acquire the manpower needed to achieve the organizational
goals
HRP help the organization have the right number and kind of
people at the right place and right times achieve the organizational
goals
Versatile Business School, Egmore, Chennai - 600 008
DEFINITION
“HRP includes estimation of how many qualified people are necessary to
carry out the assigned activities, how many people will be available, and
what, if anything, must be done to ensure personnel supply equals personnel
demand at the appropriate point in the future”
“HRP is a Process, by which an organization ensures that it has the right
number and kind of people at the right place, at the right time, capable of
effectively and efficiently completing those tasks that will help the
organization achieve its overall objectives”
Versatile Business School, Egmore, Chennai - 600 008
NEED & IMPORTANCE OF HRP
Forecast future personnel needs
Cope with change
Creating highly talented personnel
Protection of weaker sections
International strategies
Increasing investments in HR
Resistance to change & move
Versatile Business School, Egmore, Chennai - 600 008
Environment
Organizational objectives and policies
HR supply forecastHR needs forecast
HR Implementation
Control and Evaluation of
Programme
HR Programming
Surplus
Restricted Hiring
Reduced Hours
VRS, Lay off
Shortage
Recruitment and selection
PROCESS OF HRP
Versatile Business School, Egmore, Chennai - 600 008
HR DEMAND FORECASTING TECHNIQUES
Managerial Judgement
Ratio-trend Analysis
Work study techniques
Delphi techniques
Flow models
Others
Versatile Business School, Egmore, Chennai - 600 008
HR SUPPLY FORECASTING TECHNIQUES
Existing Human
Resource
Internal Sources of Supply
External sources of supply
Versatile Business School, Egmore, Chennai - 600 008
JOB ANALYSIS
JOB:
“Job is a ‘group of tasks to be performed everyday.”
JOB ANALYSIS
Definition 1: (Process of Collecting Information)
“Job Analysis is a process of studying and collecting information relating to operations
and responsibilities of a specific job.”
Definition 2: (Systematic Exploration of Activities)
“Job Analysis is a systematic exploration of activities within a job. It is a basic technical
procedure that is used to define duties and responsibilities and accountabilities of the
job.”
There are two aspects of job Analysis
Job description
Job specification
Versatile Business School, Egmore, Chennai - 600 008
JOB ANALYSIS Job description is prepared on the basis of data collected through job
analysis
It is a description of the activities and duties to be performed in a job
The relationship of the job with other jobs
The equipment and tools involved
Nature of supervision
Working condition
Thus job description differentiates one job from other
Versatile Business School, Egmore, Chennai - 600 008
JOB SPECIFICATION
PURPOSE OF JOB DESCRIPTION
Grading and classification of jobs
Placement and orientation of new employee
Promotion and transfer
Outlining for career path
Developing work standards
Counseling of employee
Versatile Business School, Egmore, Chennai - 600 008
JOB SPECIFICATION
Job specification focuses on the person
Minimum level of qualification
Skills physical and other abilities
Experience
Judgment and attributes
Job specification specifies the physical, psychological, personal,
social and behavioral characteristics of the job holder
Versatile Business School, Egmore, Chennai - 600 008
JOB SPECIFICATION
Purpose of job description
Personnel planning
Performance appraisal
Hiring
Training and development
Job evaluation and compensation
Health and safety
Employee discipline
Career planning
Versatile Business School, Egmore, Chennai - 600 008
A statement containing items such as
Job title
Location
Job summary
Duties
Machine, tools and equipment
Materials and forms used
Supervision given /received
Working condition
A statement containing items such as
Education
Experience
Training
Judgment
Imitative
Physical effort
Physical skills
Responsibilities
Communication skills
Emotional character tics
Sensory demand
JOB DESCRIPTION JOB SPECIFICATION
Versatile Business School, Egmore, Chennai - 600 008
UNIT-IIICAREER PLANNING AND DEVELOPMENT
Versatile Business School, Egmore, Chennai - 600 008
CAREER PLANNING AND DEVELOPMENT
What is a Career ?
A Career can be defined as all jobs held by a person during his working life
Career is represented as an organized, well timed and a positive move taken by an individual across time
and space in his life time
There are factor’s shaping Career
Education
Experience
Performance
Parents
Caste link
Some occasional luck
What is Career Planning ?
Career planning can be defined as a systematic process by which one decided his/her career goals and the
path to reach these goals
Versatile Business School, Egmore, Chennai - 600 008
Objectives of Career Planning
Build commitment in the individual
Develop long-range perspective
Reduce personal turnover expenses
Lessen employee obsolescence
Ensure organizational effectiveness
Allow individual to achieve personal and work related goals.
Importance of Career Planning
Career planning is important because it helps the individual to explore, choose
and strive to derive satisfaction with his own career objectives
Versatile Business School, Egmore, Chennai - 600 008
KEY TERMS IN CAREER PLANNING
Key Terms in Career Planning
Career Goals
Career Path
Career Anchor
Career Progression
Mentoring
Career Planning
Career Development
Career Management
Versatile Business School, Egmore, Chennai - 600 008
CAREER STAGES
Exploratory stages
Establishment stages
Mid career stage
Late career stage
Decline stage
Versatile Business School, Egmore, Chennai - 600 008
CAREER PLANNING PROCESS
Action plan and periodic
review
Identifying match and mismatches
between aspiration and opportunities
Analyzing career
opportunities
Analyzing employee needs and aspiration
Versatile Business School, Egmore, Chennai - 600 008
CAREER DEVELOPMENT
Career Development
Career Need Assessment
Career Opportunities
Need Opportunity alignment
Performance appraisal
Career counseling
Job rotation
Versatile Business School, Egmore, Chennai - 600 008
CAREER MANAGEMENT
Career Management
Balance between Individual career planning and organizational
career planning
Individual Career Planning
Assess needs
Analyze career opportunities
Set career goals
Develop action plans
Versatile Business School, Egmore, Chennai - 600 008
Organizational Career
Planning
Assess human resource
requirement
Career paths for each persons
Integrate career goals and
organizational needs
Initiate career development
efforts
Career development
How individual can reach the top
How organization can help
Self assessment tools
Individual counseling
Information services
Assessment program
Development program
Program for special groups
Versatile Business School, Egmore, Chennai - 600 008
HUMAN RESOURCE
MANAGEMENT
UNIT 4
Versatile Business School, Egmore, Chennai - 600 008
PERFORMANCE APPRAISAL
Definition: “It is a systematic evaluation of an individual
with respect to performance on the job and individual’s
potential for development.”
Definition 2: “It is formal, structured system of
measuring, evaluating job related behaviors and
outcomes to discover reasons of performance and how to
perform effectively in future so that employee,
organization and society all benefits.”
Versatile Business School, Egmore, Chennai - 600 008
MEANING
Performance Appraisals is the assessment of individual’s performance
in a systematic way.
It is a developmental tool used for all round development of the
employee and the organization.
The performance is measured against such factors as job knowledge,
quality and quantity of output, initiative, leadership abilities,
supervision, dependability, co-operation, judgment, versatility and
health.
Assessment should be confined to past as well as potential performance
also
Versatile Business School, Egmore, Chennai - 600 008
PURPOSE OF PERFORMANCE
APPRAISAL
To identify employees for salary increase, promotion,
transfer and lay-off or termination of services
To determine training and development needs of the
employee
To motivate employee by providing feedback on their
performance level
To establish a basis for research and reference for
personnel decision in future.
Versatile Business School, Egmore, Chennai - 600 008
Performance Appraisal can been classified into two categories
Purpose of
Performance
Appraisal
Evaluative
1. Compensation Decision
2. Staffing Decision
3. Evaluate Selection System
Development
1. Performance Feedback
2. Training and Development
3. Feedback for Improvement
Versatile Business School, Egmore, Chennai - 600 008
DIFFERENCE BETWEEN JOB EVALUATION
AND PERFORMANCE APPRAISAL
It rates a job
It rates the job keeping in view the
responsibility, qualification,
experience, working condition
Its purpose is to determine wage
levels for different jobs
It is rated before an employee is
appointed to hold it
Conducting job evaluation is not
compulsory
It is done by a committee consisting
of internal and external experts
It rates a job holder
It rates a job holder on the basis of his or
her performance
It is done for the purpose to give effects
to promotion, transfer, assess training
needs, offer rewards, awards,
punishment
It is evaluated only after the employee
has been hired and placed on a job
It is compulsory to conduct it on regular
basis
It is done by employees themselves,
peer, supervisor or combination
Job Evaluation Performance Appraisal
Versatile Business School, Egmore, Chennai - 600 008
APPROACHES TO PERFORMANCE
APPRAISAL
Casual Approach
It is unsystematic and often random appraisal, which mostly
concentrated on quantitative and qualitative measurement
Traditional Approach
This approach is used to evaluate
Employee characteristics
Employee contribution
All employee are appraised in the same manner using the same approach.
It is a highly systematic appraisal
Versatile Business School, Egmore, Chennai - 600 008
APPROACHES TO PERFORMANCE
APPRAISAL
Mutual Goal Setting Approach
This is also called behavioral approach
It is a improvement over the traditional approach
It is popularly known as “Management by Objectives”
Versatile Business School, Egmore, Chennai - 600 008
PROCESS OF PERFORMANCE
APPRAISAL
Establish performance standard
Communicate performance expectation to employee
Measures actual performance
Compare actual performance with standard
Discuss the appraisal with the employee
Initiate corrective actions
Versatile Business School, Egmore, Chennai - 600 008
METHODS OF PERFORMANCE APPRAISAL
Traditional method/past orientation
Ranking method
Paired comparison
Grading
Forced distribution method
Forced choice method
Checklist method
Critical incident methods
Graphic scale method
Essay method
Field review method
Confidential method
Modern methods/future orientation
Management by Objectives
Behaviorally anchored rating scales
Assessment centers
360-degree appraisal
Cost accounting method
Versatile Business School, Egmore, Chennai - 600 008
ESSENTIALS OF GOOD
PERFORMANCE APPRAISAL
Standardized Performance Appraisal System
Uniformity of appraisals
Defined performance standards
Trained Raters
Use of relevant rating tools or methods
Should be based on job analysis
Use of objectively verifiable data
Avoid rating problems like halo effect, central tendency, leniency, severity etc.
Consistent Documentations maintained
No opportunity for discrimination based on cast, creed, race, religion, regionVersatile Business School, Egmore, Chennai - 600 008
POTENTIAL APPRAISAL
What is potential
It is the abilities present but not utilized
Evaluating what a person can perform or do is called potential appraisal or
evaluation
Potential represents latent capacities and qualities in a person which manifests
while performing the job
Objectives of potential appraisal
o Promote an employee to higher levels of jobs involving higher order or
responsibilities which the employee can effectively discharge without being over-
burdened and stretched
o Assist the organization to allocate jobs among employee as per their capabilities so
that organizational responsibilities are discharged effectively
Versatile Business School, Egmore, Chennai - 600 008
HOW TO EVALUATE POTENTIAL
APPRAISAL
Classification of potential appraisal
Low potential – low performance (planned separation)
High potential – low performance (Problem child)
Low potential – high performance (solid citizen)
High potential – high performance ( stars)
Problem child stars
Planned separation Solid citizen
Versatile Business School, Egmore, Chennai - 600 008
JOB COMPENSATION – WAGES AND
SALARY ADMINISTRATION
Workers render their services for wages and salary also called
compensation
In other words workers exchange their work for compensation
The term compensation comprises of cash payment, which in
addition to wages and salary includes pension, bonus and
shared profit
There are other aspects of compensation the employee looks
for such promotion, words of praise, job satisfaction, job
content, creativity and so on
Versatile Business School, Egmore, Chennai - 600 008
OBJECTIVE OF WAGES AND SALARY
Organizational objective
Enable an organization to have the quantity and
quality of staff it requires
Retain the employees in the organization
Motivate employees for good performance for further
improvement in performance
Maintain equity and fairness in compensation for
similar job
Versatile Business School, Egmore, Chennai - 600 008
Individual objective
Ensure a fair compensation
Provides compensation according to employee’s worth
Avoiding the chances of preference from creeping in when
wages rates are assigned
Enhance employee morale and motivation
Collective objective
Matching with market rates
Increase in compensation reflecting increase in the
prosperity of the company
Compensation systems free from management discretion
Versatile Business School, Egmore, Chennai - 600 008
PRINCIPLES OF WAGES AND SALARY
ADMINISTRATION
The main principles that govern wages and salary fixation are three
External Equity
Internal Equity
Individual worth
External Equity: This principle acknowledges that factors/variables external
to organization influence level of compensation in an organization.
These variables are such as demand and supply of labour, the market rate
If these variables are not kept into consideration while fixing wages and
salary levels these may be insufficient to attract and retain employee in the
organization
Versatile Business School, Egmore, Chennai - 600 008
PRINCIPLES OF WAGES AND SALARY
ADMINISTRATION
Internal equity: Organization have various jobs which are relative in
value term.
The value of various jobs in an organization are comparative
Thus the compensation system should ensure that more difficult jobs
should be paid more
Individual worth: according to this principle, an individual should be
paid as per his/her performance
It has to be rewarded according to his contribution to organization
This principle ensure that each individual’s pay is fair in comparison
others doing the same jobs i.e. “equal pay for equal work”
Versatile Business School, Egmore, Chennai - 600 008
COMPONENTS OF WAGES AND SALARY
ADMINISTRATION
Determination of wages and salary
The starting point of wages and salary administration is the
determination of wages and salary levels
The wages of employee in the organized sector in India is
determined by a variety of factors
Wages Enactments (both central and state)
Prevalent wages rates
Influence of trade union
Corporate philosophy on wages
Versatile Business School, Egmore, Chennai - 600 008
COMPONENTS OF WAGES AND SALARY
ADMINISTRATION
Wages and salary structure
Jobs offered by an organization vary in terms of their values
Job value is ascertained by job evaluation
Once all jobs are assigned values, then these are placed in a
grade, or say, a rate per job.
These grades are arranged in an hierarchical order starting
with lower to higher jobs
Thus wages/salary structure consists of the various salary
grades and their different level of single jobs or groups of
jobs
Versatile Business School, Egmore, Chennai - 600 008
FACTORS AFFECTING THE FORMULATION OF
SALARY AND WAGES
FACTORS
Cost of living
Prevailing wage rates
Govt.Legislations
Ability to pay
Labour unions
Attraction and
retention of employee
Productivity
Versatile Business School, Egmore, Chennai - 600 008
METHODS OF WAGE PAYMENT
Minimum wages
Living wage
Fair wage
Payment by time
Payment by result
Straight piece work
Differential piece work system
Balance method
Versatile Business School, Egmore, Chennai - 600 008
INCENTIVES AND BENEFITS
Incentives is anything that attract a worker and stimulates him to work
The incentives can be financial and non-financial
The incentives play an important role under different conditions
Financial incentives are considered to be more valued under the work
condition where wages are at low level
Non-financial incentives are more preferable where wages level are high
and the rate of tax is progressive
Financial incentives as also known as wage incentives
This wage incentives are extra financial motivation, they are designed to
stimulate human efforts by rewarding the person
Versatile Business School, Egmore, Chennai - 600 008
MAIN FEATURES OF INCENTIVES
Incentives are based on a standard of performance for the job
Incentives are measurable in monetary terms
Incentives are meant to motivate workers for better and more
performance
Incentives have direct linking to performance
Incentives vary from person to person and from time to time
for the same person
Versatile Business School, Egmore, Chennai - 600 008
ASSUMPTIONS OF INCENTIVES SCHEME
The belief that money is a strong motivator
That the relationship between effort and reward can be
systematically established
The relationship so based leaves no doubts in the mind of
the concerned employee
The feedback to the employee is immediate and direct
Versatile Business School, Egmore, Chennai - 600 008
TYPES OF INCENTIVES
Individual incentives
Taylor’s differential piece rate plan
Halsey premium plan
Rowan premium plan
Emerson efficiency plan
Gantt task and bonus plan
Versatile Business School, Egmore, Chennai - 600 008
TYPES OF INCENTIVES
Group incentives
Profit-sharing
Current
Deferred
Combination
Co-partnership
Scanlon plan
Versatile Business School, Egmore, Chennai - 600 008
BENEFITS
What is benefit?
The term benefits has been in vogue in Indian industry since
long
This is called by various names such as fringe benefits, wage
supplements, supplementary compensation, non-wage
benefits, indirect benefits, hidden benefits
In simple words benefits means membership based non-
financial rewards given to employees
Versatile Business School, Egmore, Chennai - 600 008
TYPES OF BENEFITS Statutory benefits
The factories act 1948
The mines act 1952
The plantation labor act 1951
The motor transport worker act 1961
Employee’s state insurance act 1948
Workmen compensation act 1923
Voluntary benefits
Legally required payment
Old age pension, disability pension, unemployment insurance, worker’s compensation
Contingent and deferred benefits
Pension plan, group life insurance, maternity leaves
Payment for time not worked
Vacation, holidays and voting pay allowance
Paid rest periods
Waste-up time and lunch period
Festival bonus
Versatile Business School, Egmore, Chennai - 600 008
ADVANTAGES OF INCENTIVE BASED
COMPENSATIONS
Incentives are important for inducement and motivation of workers for
higher efficiency and greater output.
Employee earnings go up
Enhanced standard of livings of employees
Reduction in total unit cost of production,
Productivity increases.
Production capacity is also likely to increase
Reduced supervision
Versatile Business School, Egmore, Chennai - 600 008
DISADVANTAGES OF INCENTIVE BASED
COMPENSATION
Tendency of quality of products deteriorated due to increased output
and low cost
Employees may oppose introduction of new machines
Workers demand for minimum wage limit may go up due to high
incentive earnings
Sometimes employees may disregard security regulations due to
payment by results approach adopted for higher incentive figures
Overworking may affect employee health
Employee relations with peers are hit.
Versatile Business School, Egmore, Chennai - 600 008
MAKING INCENTIVES AND BENEFITS
MORE EFFECTIVE
Both incentives and benefits should be treated as an
instrument in human resource management
The benefits should be aligned with the basic requirement of
the workers
Benefits should also be comparable with benefits provided by
other organization both at the national and international levels
The package should be flexible one as per the requirement
Employees should be involved in the process of devising
incentives and benefit packages
Versatile Business School, Egmore, Chennai - 600 008
PROMOTION
Promotion is vertical movement of an employee within the
organization
Promotion refers to the upward movement of an employee
from one job to another higher one, with increase in salary,
status and responsibilities
Promotion may be temporary or permanent depending upon
the needs of the organization
Promotion provides an inducement and motivation to the
employee and also remove feelings of stagnation and
frustration
Versatile Business School, Egmore, Chennai - 600 008
TYPES OF PROMOTION
HORIZONTAL PROMOTION
• When an employee
is shifted in the
same category, it is
called horizontal
promotion
VERTICAL PROMOTION
• When an employee
is promoted from a
lower category to
higher category
involving in
increase in salary,
status, authority
and responsibilities
DRY PROMOTION
• When promotion is
made without
increase in salary it
is called ‘dry
promotion’
Versatile Business School, Egmore, Chennai - 600 008
PURPOSE
To recognize an employees skill and knowledge and utilize it to
improve the organization effectiveness
To reward and motivate employees to higher productivity
To develop competitive sprit and inculcate the zeal in the
employee to acquire skill knowledge
To promote employee satisfaction and boost their morale
Versatile Business School, Egmore, Chennai - 600 008
PURPOSE
To build loyalty among the employee towards organization
To promote good human relations
To increase sense of belongingness
To retain skilled and talented people
To attract trained, competent and hard working people
To impress the other employee that opportunities are available to
them too if they also perform well
Versatile Business School, Egmore, Chennai - 600 008
POLICY FOR PROMOTION
It must provide equal opportunities for promotion across the job,
departments and regions
It must be applied uniformly to all employee irrespective of their
background
The basis of promotion must be clearly specified and made known to
the employee
It must be correlated with career planning. Both quick and delayed
promotions must be avoided as these ultimately adversely affect the
organizational effectiveness
The policy must be good blending of promotion made from both
inside and outside organization
Versatile Business School, Egmore, Chennai - 600 008
BASIS OF PROMOTION
Seniority i.e. length of services
Merit i.e. performance
Educational and technical qualification
Potential for better performance
Career and succession plan
Vacancies based on organizational chart
Motivational strategies like job enlargement
Training
Versatile Business School, Egmore, Chennai - 600 008
TRANSFER
A transfer refers to lateral movement of employee within the same
grade, from one job to another
Transfer differ from promotion in the sense that the latter involves a
change a job involving increase in salary, authority, status and
responsibility, while all these remain unchanged/stagnant in the case
of former. Also transfer are frequent and regular whereas promotions
are infrequent, if not irregular
The company may transfer the employee to the place where he can
prove more useful and effective
Transfer are used as an instrument for victimizing the employees by
management
Versatile Business School, Egmore, Chennai - 600 008
TYPES OF TRANSFER Production transfer: Such transfer are made when labour requirement
in one division branch is declining. The surplus employee from such
division are transferred to those division branches where there is
shortage of employee
Remedial transfer: Such transfer are affected to correct the wrong
selection and placement of employee. A wrongly placed employee is
transferred to more suitable job
Replacement transfer: Replacement transfer are similar to production
transfer in their inherent i.e. to avoid layoffs. Replacement transfer
are affected when labour requirement are declining
Versatile Business School, Egmore, Chennai - 600 008
TYPES OF TRANSFER Versatility transfer: These transfer are also known as ‘job rotation’.
In such transfer employee are made to move from one job to another
to gain varied and broader experience of work.
Shift transfer: These transfer are affected in the organizations where
work progresses for 24 hours or in shifts. Employee are transferred
from one shift to another usually on the basis of mutual
understanding and convenience.
Penalty transfer: Management may use transfer as an instrument to
penalize employee involved in undesirable activities in the
organization. Employee transfer from one’s place of convenience to
a distant and remote area is considered as a penalty to the employee.
Versatile Business School, Egmore, Chennai - 600 008
PURPOSE
To meet the organizational needs
To satisfy employee needs
To better utilize employee
To make employee more flexible
To adjust the workforce
To provide relief
To punish employee
Versatile Business School, Egmore, Chennai - 600 008
POLICY
Specify the circumstance under which transfer will be made
Specify the basis for transfer
Decide the authority which would handle transfer
Intimate the fact of transfer to the person concerned well in
advance
Specify the jobs to which transfer will be made and duties
and salary on assumption of new jobs should also be clarified
Clarify whether transfer is permanent or temporary
Versatile Business School, Egmore, Chennai - 600 008
DEMOTION
Demotion is just the opposite of promotion
It is the downward movement of an employee in the organizational
hierarchy with lower rank/status and pay.
Definition: ‘demotion is the assignment of an individual to a job of
lower rank and pay usually involving lower level of difficulty and
responsibility”
Demotion affects the status, pride, career and income of the
employee
It is often preliminary to dismissal
It is used as a corrective measure in case of serious breaches of duty
on the part of an employee
Versatile Business School, Egmore, Chennai - 600 008
Causes
Demotion may be caused by several factors which may be beyond an
employee’s control
Incompetence
Adverse business conditions
Disciplinary measures
Versatile Business School, Egmore, Chennai - 600 008
Policy
A clear and reasonable list of rules should be framed, violation of
which would subject and employee to demotion
This information should be clearly communicated to employee
There should be a competent investigation of any alleged violation
Once violation are proved, there should be a consistent and equitable
application of the penalty, preferably by the immediate supervisor
There should be provision for review
Versatile Business School, Egmore, Chennai - 600 008
SEPARATION
Separation is a situation when the services agreement of an employee with
organization come to an end and employee leaves the organization
Employee may be separated, or say may move out of organization for a variety
of reasons like retirement, resignation, suspension, discharge, dismissal and
layoff
Various forms of employee separation
Retirement: Termination of an employee on reaching the age of superannuation
Compulsory retirement
Voluntary retirement
Resignation: Termination of services by an employee by serving notice is called
resignation on the employer
Versatile Business School, Egmore, Chennai - 600 008
SEPARATION
Lay off: Lay off implies denial of employment for reasons beyond the control of
employer
Lay off may be a temporary
Retrenchment: Retrenchment means permanent termination of an employee’s services for
economic reasons
Retrenchment occurs on account of surplus staff, poor demand for product,
general economic slow down etc
Dismissal: Dismissal is termination of services of an employee as a corrective measures
This may occur either on account of unsatisfactory performance or misconduct
Before a employee is dismissed, he must be served advance notice to explain his
position
The reason for dismissal must be clearly made known to the employee
Versatile Business School, Egmore, Chennai - 600 008
ABSENTEEISM AND LABOUR TURNOVER
Meaning: Employee’s presence at work place during the scheduled time is
highly essential for the smooth running of the production process in
particular and the organization in general.
Despite the significance of their presence employees sometime fail to report
at the work place during the scheduled time which is known as absenteeism
Definition: “ The failure of a worker to report for work when he is
scheduled to work”
According to Webster's “Absenteeism is the practice or habit of being and
‘absence’ and an absentee is one who habitually stays away”
Versatile Business School, Egmore, Chennai - 600 008
TYPES OF ABSENTEEISM
Authorized absenteeism: If an employee absent himself from work by
taking permission from his superior and applying for leave, such
absenteeism is called authorized absenteeism
Unauthorized absenteeism: If an employee absent himself from work
without informing or taking permission and without applying for leave, such
absenteeism is called unauthorized absenteeism
Versatile Business School, Egmore, Chennai - 600 008
TYPES OF ABSENTEEISM
Willful absenteeism: If an employee absent himself from duty
knowingly, such absenteeism is called willful absenteeism
Absenteeism caused by circumstance beyond one’s control: If an
employee absent himself from duty owing to the circumstances
beyond his control like involvement in accidents or sudden sickness,
such absenteeism is called absenteeism caused by circumstance
beyond one’s control
Versatile Business School, Egmore, Chennai - 600 008
FEATURES OF ABSENTEEISM
The rate of absenteeism is the lowest on pay day, it increases considerably
on the day following the payment of wages and bonus.
Absenteeism is generally high among the workers below 25 years of age
and those above 40 years of age.
The rate of absenteeism varies from department within an organization.
Generally it is high in the production department.
Absenteeism in traditional industries is seasonal in character.
Versatile Business School, Egmore, Chennai - 600 008
CAUSES OF ABSENTEEISM
In adaptation with the working condition
Social and religious ceremonies
Unsatisfactory housing
Industrial weakness
Unhealthy working condition
Poor welfare facilities
Alcoholism
Indebtedness
In adaptation with the job demand
unsound leave facilities
Low level of wages
Versatile Business School, Egmore, Chennai - 600 008
CATEGORIES OF ABSENTEEISM
Entrepreneurs: This class of absenteeism consider that their jobs are very small for
their total interest and personal goal. They engage themselves in other social and
economic activities to fulfill their goals
The status seekers: This type of absenteeism enjoys or perceives a higher ascribed
social status and is keen on maintaining it
The Epicureans: This class of absentees does not like to take up the jobs which
demand initiative, responsibility, discipline and discomfort. They wish to have
money, power, status but are willing to work for their achievement
Family oriented: This type of absentees is often with the family activities
The sick and old: This category of absentees is mostly unhealthy, with a weak
constitution or old people
Versatile Business School, Egmore, Chennai - 600 008
MEASURES TO MINIMIZE ABSENTEEISM
Selecting the employee by testing them thoroughly regarding their aspirations,
value systems, responsibility and sensitiveness
Adopting a humanistic approach in dealing with the personal problems of
employee
Following a proactive approach in identifying and redressing employee
grievances
Providing hygienic working condition
Providing welfare measures and fringe benefits, balancing the needs for the
employee and the ability of the organization
Providing high wages and allowances based on the organization financial
positions
Improving the communication network, particularly the upward communication
Versatile Business School, Egmore, Chennai - 600 008
MEASURES TO MINIMIZE ABSENTEEISM
Providing leave facility based on the needs of the employees and
organizational requirements
Providing safety and health measures
Providing coordinal human relations and industrial relation
Educating the workers
Counseling the worker about their career, income and expenditure, habits
and culture
Versatile Business School, Egmore, Chennai - 600 008
MEASURES TO MINIMIZE ABSENTEEISM
Free-flow of information, exchanging of ideas, problem etc. between
subordinates and superior
Granting leave and financial assistance liberally in case of sickness
of employee and his family members
Offering attendance bonus and inducements
Providing extensive, training, encouragement, special allowances in
cash for technological advancement
Versatile Business School, Egmore, Chennai - 600 008
LABOUR TURNOVER
Employees who are not satisfied with their career in the present
organization may seek suitable employment in other organizations.
Similarly, organization may also prefers candidates from external
source, if the internal candidates are not found suitable
Meaning: external mobility means shifting of employees into and
out of an organization. It is defined as the rate of change in the
employee of an organization during a definite period.
It measures the extent to which old employees leaves and new
employees enter into an organization
Versatile Business School, Egmore, Chennai - 600 008
TYPES OF LABOUR TURNOVER
EXTERNAL
MOBILITY
Accession Separation
Versatile Business School, Egmore, Chennai - 600 008
TYPES OF LABOUR TURNOVER
Accessions: Accession are additions of new candidates to the
existing employee.
It includes employment of new candidates, re-employment of
former employees, employees called back to work after lay
off etc
Separation: separation means termination of employment. They are
also called employee turnover. They include
Voluntary quitting or resignation by employees when they are
dissatisfied with the present job and organization
Versatile Business School, Egmore, Chennai - 600 008
QUALITY OF WORK LIFE
Quality of work life deals with various aspects of work environment,
which facilitates the human resource development efficiently
Quality of work life helps for development of human resource
Quality of work life includes and motivates the employees to learn
further for present and future roles
Meaning: It refers to the favorableness or unfavourableness of a job
environment for people
Definition: “the degree to which members of a work organization are
able to satisfy important personnel needs through their experience in
the organization
Versatile Business School, Egmore, Chennai - 600 008
MEASURING OF QUALITY OF WORK LIFE
Adequate and fair compensation
Safe and healthy working condition
Opportunity to use and develop human capacities
Opportunity for career growth
Social integration in the work force
Constitutionalism in the work organization
Work and quality of life
Social relevance of work
Versatile Business School, Egmore, Chennai - 600 008
SPECIFIC ISSUES IN QUALITY OF WORK
LIFE
Unions claim that they are responsible for improvement in various facilities to
workers whereas management takes credit for improved salaries, benefits and
facilities
Manager has identified specific issues in quality of work life besides normal
wages, salaries, fringe benefits etc and take lead in providing them so as to
maintain higher order quality of work life
There are some issues in QWL
Pay and stability of employment
Occupational stress
Organizational health program me
Alternative work schedules
Participative management and control of workVersatile Business School, Egmore, Chennai - 600 008
SPECIFIC ISSUES IN QUALITY OF WORK LIFE
Recognition
Congenial worker-supervisor relations
Grievance procedure
Adequacy of resources
Seniority and merit in promotions
Employment on permanent basis
Versatile Business School, Egmore, Chennai - 600 008
SPECIFIC ISSUES IN QUALITY OF WORK
LIFE
QWL and fringe benefits: HR managers has to build and maintain
QWL providing a wide range of fringe benefits
Fringe benefits and social security benefits result in
improvement in productivity, reduction in absenteeism,
turnover, sick, leave, alienation
QWL and productivity: The general perception is that improvement
in QWL cost must to the organization
The rate of increase in productivity is higher than the cost of
QWL
Increase in QWL results in increase in productivity
Versatile Business School, Egmore, Chennai - 600 008
SPECIFIC ISSUES IN QUALITY OF WORK
LIFE
HR activity Effects on Quality of Work life
Job Analysis Analyze the job in such a way
that human needs like
freedom, challenging work,
autonomy can be satisfied
Selection Selecting the right man and
placing him in the right position.
This satisfies his needs for reward,
interesting work etc
Job Enrichment Satisfied higher order needs like
pride, ego etc
Job Evaluation Equitable wages
Versatile Business School, Egmore, Chennai - 600 008
QUALITY CIRCLE
Meaning: It is small group of employees in the same work area or doing
similar type of work who voluntarily meets regularly for about an hour
every week to identify, analyze and resolve work related problems not
only to improve quality, productivity and the total performance of the
organization
A task force is a group of most skilled employees selected and appointed
by the management, engaged in various functions with an orientation to
problem solving
The quality circles are voluntary associations of workers of the same
work place
Quality circle involves people in solving problem and tap their brain
power effectively
Versatile Business School, Egmore, Chennai - 600 008
OBJECTIVES OF QUALITY CIRCLE
To develop, enhance and utilize human resource effectively
To improve quality of product/service, productivity and reduce cost of
production per unit of output
To satisfy the worker’s psychological needs for self-urge, participation,
recognition etc. with view to motivating them
To improve various supervisory skills like leadership, problem solving, inter
personal and conflict resolution
To utilize individual imaginative, creative and innovation skills through
participation, creating and developing work interest, including problem solving
techniques
Achievement of these objectives effectively requires the use of certain
techniques
Versatile Business School, Egmore, Chennai - 600 008
FEATURES OF QUALITY CIRCLE Voluntary groups : QC is a voluntary group of employees generally
coming from the same work area. There is no presence from any
where on employee QC
Small size : The size of the QC is generally small consisting of six to
eight members
Regular meeting: QC meeting are held once a week for about an
hour or regular basis
Independent agenda: Each QC has its own agenda with its won
terms of reference
Quality focused : As per the very nature and intent of QC, it focus
exclusively on quality issues
Versatile Business School, Egmore, Chennai - 600 008
ORGANIZATIONAL STRUCTURE OF QUALITY
CIRCLES
Non-members: These are the persons who have to help in implementing the
recommendation made by the quality circle members
Members: The members are the heart of the program me, and proper use of their
untapped brain power is the key to its success
Leader/deputy leader: The quality circle leader is elected by the circle members
Facilitator: facilitator is an important link between the quality circle leader and
the steering committee
Steering committee: It is an apex body at the highest level of the plant which
would be responsible for formulating objectives and for supplying the resources
for the quality circle activities
Top management
Co-ordinating AgencyVersatile Business School, Egmore, Chennai - 600 008
BENEFITS OF QUALITY CIRCLE
Satisfaction of self esteem and esteem from others
Improved job satisfaction
Self-development in terms of skills, knowledge, sensitivity
Satisfaction of social and psychological needs
Problems of quality circle
Fitting them effectively in the existing cultural environment
in the industry, rewarding, awarding and motivating the
quality circle members and facilitators
Negative attitude
Lack of ability
Lack of management commitment
Non implementation of suggestion
Versatile Business School, Egmore, Chennai - 600 008
HUMAN RESOURCE
MANAGEMENTUNIT V
Versatile Business School, Egmore, Chennai - 600 008
SYLLABUS
Job Satisfaction and Morale
Employee Health and Safety
Counseling for Effective HRD
Human Relations
Employee Grievance and discipline
Employee participation and Empowerment
Collective Bargaining
HR Audit
Versatile Business School, Egmore, Chennai - 600 008
JOB SATISFACTION
Job satisfaction refers to a person’s feeling of satisfaction on the job, which
acts as a motivation to work
It is not self-satisfaction, happiness or self-contentment but satisfaction on
the job
Definition: “pleasurable emotional state resulting from the appraisal of
one’s job as achieving or facilitating the achievement of one’s job values”
Versatile Business School, Egmore, Chennai - 600 008
FACTORS AFFECTING JOB SATISFACTION
Personal factors: They include worker’s sex, education, age, marital status
and their personal characteristics, family background, socio-economic
background and the like
Factors inherent in the job: These factors have recently been studied and
found to be important in the selection of employee
These include the work itself, condition, influence of internal and
external environment on the job which are uncontrolled by the
management
Factors inherent in the organization: These include the nature of
supervision, job security, kind of work group, wage rate, promotional
opportunities, transfer policy, duration of work and sense of responsibilities
Versatile Business School, Egmore, Chennai - 600 008
HUMAN RELATIONS
Practicing various human resource policies and program like employment,
development & compensation and interaction
Employees create a sense of relationship between the individual worker and
management, among workers and trade union and the management
It is the process of interaction among human beings
Human relation is an area of management in integrating people into work
situation in a way that motivates them to work together productively, co-
operatively and with economic, psychological and social satisfaction
Versatile Business School, Egmore, Chennai - 600 008
Human relations includes of the following
Understanding and applying the model of perception, personality,
learning, intra and inter-personal relations, intra-inter-groups relation
Motivating the employees
Boosting employee morale
Developing the communication skills
Developing the leadership skills
Versatile Business School, Egmore, Chennai - 600 008
…CONTD..
Redressing employee grievance properly and in time by means of a well
formulated grievance procedure
Handling disciplinary cases by means of an established disciplinary
procedures
Counseling the employees in solving their personal, family and work
problems and releasing their stress , strain and tension
Providing a comfortable work environment by reducing weakness,
repetitiveness , boredom and industrial accidents
Improving quality of work life of employee through participation and
other means
Versatile Business School, Egmore, Chennai - 600 008
MORALE
Definition: “ a mental condition or attitude of individuals and
group, which determines their willingness to co-operate”
Good morale is evidenced by employee enthusiasm, voluntary
conformance with regulation and orders and willingness to co-
operate with others in the accomplishment of an organization’s
objectives
Poor morale is evidenced by coldness, insubordination, a feeling of
discouragement and dislike of the job, company and associates
Versatile Business School, Egmore, Chennai - 600 008
IMPORTANCE OF MORALE
High level morale contributes to sound superior –subordinate relation
High morale leads to employee satisfaction. The satisfied employee
stays with the organization continuously
It reduces employee turnover and absenteeism
High level morale and employee satisfaction reduces employee
grievance. Further satisfied employees follow the company rules and
regulation
It reduces employee indiscipline
High morale leads to employee commitment to industrial peace by
avoiding the occurrence of industrial disputes
Morale helps the employees to build teams easily to maximize their
contribution Versatile Business School, Egmore, Chennai - 600 008
FACTORS AFFECTING MORALE
The level of satisfaction with job standards
The level of consideration the supervisor shows to his
subordinates
The work load and the work pressure level
The treatment of individuals by the management
Versatile Business School, Egmore, Chennai - 600 008
FACTORS AFFECTING MORALE
The level of worker’s pride in the company and its activities
The level of workers satisfaction with salaries
Worker’s reaction to the formal communication network in
organization
Fundamental job satisfaction level of the workers
Worker’s satisfaction with eh progress and opportunities for
further progression
The worker attitude towards fellow workers
Versatile Business School, Egmore, Chennai - 600 008
MEASUREMENT OF MORALE
Employees are naturally unwilling to express their true attitude towards work
and the management. So it is difficult to measure the morale of the employee
exactly. The following are some popular methods of morale measurement
Observation
Attitude survey
Company records
Observation: A keen observation of employee behaviour, talk, and signal should
help the manager to identify any change in the level of morale
Attitude survey: attitude survey are conducted mainly in two ways.
(A) Interview method and Questionnaire Method
Versatile Business School, Egmore, Chennai - 600 008
MEASUREMENT OF MORALE
Company records: certain reports from the personal
department provides the information as to labour
turnover, rate of absenteeism, number of worker
grievance
Versatile Business School, Egmore, Chennai - 600 008
Warning signs of low morale
High rate of absenteeism
Lateness
High labour turnover
Strikes and damage
Lack of pride in work
Wastage and spoilage
Maintenance of morale (preventive measures or remedial
measures)
Job enrichment
Modifying the work environment
Flexible working hours
Job rotation
Point individual prosperity in company prosperity
Adaptation of “how shall – we do it” attitude
Versatile Business School, Egmore, Chennai - 600 008
EMPLOYEE HEALTH AND SAFETY
Meaning of health: health implies absence of disease
Definition: according to the (WHO) : “ a state of complete physical, mental
and social well-being and not merely the absence of disease or illness or
infirmity”
There are two types of health: Physical and Mental
Physical Health
Mental Health
Versatile Business School, Egmore, Chennai - 600 008
EMPLOYEE HEALTH AND SAFETY
Three factors for mental health
Mental breakdown
Mental disturbance
Mental illness
Versatile Business School, Egmore, Chennai - 600 008
Importance of Health
Maintain and improve the employee performance both quantitatively
and qualitatively
Reduce employee absenteeism and turnover
Minimize industrial unrest and indiscipline
Improve employee morale and motivation
Occupational Health and Diseases
Occupational health services should be established in or near a place of
employment for the purpose
Protecting the workers against any health danger arising out of work or
condition in which it is carried on
Contributing towards worker’s physical and mental adjustment
Contributing to establishment and maintenance of the highest possible
degree of physical and mental well being of the workers
Versatile Business School, Egmore, Chennai - 600 008
Occupational danger and diseases
Employees in certain industries are exposed to certain occupational danger and
diseases
Occupational danger(hazard)
Chemical hazard
Biological hazard
Environmental hazard
Psychological hazard
Occupational diseases
Occupational diseases are caused by working conditions prevalent in industries
Like occupational danger occupational diseases also develop with worker’s frequent
exposure to unhealthy working conditions
They develop slowly with accumulated effects over an extended period of time
Versatile Business School, Egmore, Chennai - 600 008
Protection against Hazard: Industrial establishment can take two types of
measures to protect worker’s health against occupational danger
Preventive measures
Pre-employment medical examination
Periodic post employment medical examination
Removal of dangers conditions to the extent possible
Emergency treatment in case of accident
Education of workers in health and hygiene
Training in first-aid to workers
Versatile Business School, Egmore, Chennai - 600 008
Curative measures
Adequate and timely medical treatment
Allowing the employee adequate period of recovering and
improving
Adequate compensation
Allowing the needed best medical treatment from outside
hospitals
Versatile Business School, Egmore, Chennai - 600 008
STATUTORY PROVISION CONCERNING
HEALTH
The Factories Act, 1948 insists that the following provisions must be made in
industrial establishment for safeguard employee health
Cleanliness
Disposal of wastes and effluents
Ventilation and temperature
Dust and smoke
Lighting
Overcrowding
Drinking water
Spittoons
First-aid appliance
Versatile Business School, Egmore, Chennai - 600 008
SAFETY
Meaning: safety means freedom from the occurrence or risk of injury or loss
Industrial safety refers to protection against accident occurring in the
industrial establishment
Significance of industrial safety
It saves cost: occurrence of an accident involves two types of cost.
Direct and indirect cost
Direct cost- compensation payable to the dependent of the victim
employee and medical expenses
Indirect cost – loss on account of down-time of operators, slowed down
production rate of other workers, spoiled materials, and damages to
equipment
Versatile Business School, Egmore, Chennai - 600 008
SAFETY
It improves productivity
It develops moral
Safety is a legal requirement
Safety measures/programmes
Reduction in unsafe conditions
Safety committee
Safety education and training
Inspection
Role of governmentVersatile Business School, Egmore, Chennai - 600 008
STATUTORY PROVISION FOR INDUSTRIAL
SAFETY IN INDIA
Fencing of machinery (sec 21 of factories act 1948)
Work on or near machinery in motion (sec 22)
Employment of adolescents on dangerous machine (sec 23)
Striking gear or device for cutting off power (sec 24)
Self-acting machines (sec 25)
Casting of new machinery (sec 26
Hoists and lifts (sec 28)
Lifting machines, tackles, chain and ropes (sec 29)
Revolving machinery (sec 30)
Versatile Business School, Egmore, Chennai - 600 008
GRIEVANCE PROCEDURE
Definition : According to beach “any dissatisfaction or feeling of injustices in connection with
one’s employment situation that is brought to the notice of the management.
Needs for a grievance procedures
Most grievance seriously disturb the employees. This may affect the morale, productivity
and their willingness to cooperate with the organization
It is not possible that all the complaints of the employee would be settled by first-time
supervisor
It serves as a check on the subjective action of the management because supervisor know
that employees are likely to see to it that their protest does reach the higher management
It serves as an outlet for employee grips, discontent and frustration
Versatile Business School, Egmore, Chennai - 600 008
CAUSES OF GRIEVANCE
Demand for individual wage adjustment
Complaints about the incentives system
Complaints about the job classification
Complaints against a particular foreman
Complaints concerning disciplinary measures and procedures
Objections to the general methods of supervision
Loose calculation and interpretation of seniority rules and unsatisfactory
interpretation of agreement
Versatile Business School, Egmore, Chennai - 600 008
CAUSES OF GRIEVANCE
Promotions
Disciplinary discharge or lay-off
Transfer for another department or another shifts
Inadequacy of safety and health services/devices
Non-availability of materials in time
Violation of contracts relating to collective bargaining
Improper job assignment
Versatile Business School, Egmore, Chennai - 600 008
Prerequisites of grievance procedure
Conformity with prevailing legislation
Clarity
Simplicity
Promptness
Training
Follow-up
Versatile Business School, Egmore, Chennai - 600 008
DISCIPLINARY PROCEDURE
Needs for Disciplinary Measures : Rules and regulation are essentials to
maintain peace, prevent anarchy, regulate behavior of people and to hold the
pieces together
Meaning and Definition: Discipline refers to a condition or attitude,
prevailing among the employees, with respect to rules and regulations of an
organization
Discipline in the broadest sense means” orderliness, the opposite of
confusion. It does means a strict and technical observance of rigid rules and
regulation. It simply means working cooperating and behaving in a normal
and orderly way, as any responsible person would expect an employee to do
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Aspects of discipline
Positive aspect
Negative aspect
Positive aspect: employees believe in and support discipline and adhere to the rules,
regulations and desired standards of behaviour
Discipline takes the form of positive support and reinforcement for approved
actions and its aim is to help the individual in moulding his behaviour and
developing him in a corrective and supportive manner. This type of approach is
called positive approach or constructive discipline or self-discipline
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Negative aspect: Employee sometimes do not believe in and support
discipline. As such, they do not adhere to rules, regulations and desired
standard of behaviour
A disciplinary programme forces and constraints the employees to obey
and function in accordance with set rules and regulations through
warning, penalties and other forms of punishment
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OBJECTIVES OF DISCIPLINE
To obtain a willing acceptance of the rules, regulations and procedures of an
organization so that organization goals may be attained
To impart an elements of certainty despites several differences in informal
behaviour patterns and other related changes in an organization
To develop among the employee a spirit of tolerance and a desire to make
adjustments
To give and seek directions and responsibility
To create an atmosphere of respect for the human personality and human
relations
To increase the working efficiency and morale of the employees so that their
productivity is stepped up and the cost of production improved
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Indiscipline: Indiscipline means disorderliness, insubordination and not
following the rules and regulation of an organization
The symptoms of indiscipline are change in the normal behaviour,
absenteeism, lethargy, go-slow at work, increase in numbers ad severity of
grievances, persistent and continuous demand for overtime allowances, lack
of concern for performance
Causes of indiscipline
Non-placement of the right person on the right job which is suitable for his
qualification, experience and training
Undesirable behaviour of senior officials, who may have set a pattern of
behaviour which they expect their subordinates to follow
Faculty evaluation of person and situation by executives leads to favoritism,
which generates undisciplined behaviour
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CAUSES OF INDISCIPLINE
Lack of communication
Leadership which is weak , flexible, incompetent and distrustful of subordinates
Defective supervision
Lack of properly drawn rules and regulation
Intolerably bad working conditions
Absence of enlightened, sympathy and scientific management
Discrimination based on caste, colour, creed, sex, language and place
Undesirable management practices
Improper co-ordination, delegation of authority and fixing of responsibilities
misunderstanding
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Disciplinary procedures
Issuing letters of charge to the employee calling him for
explanation
Consideration of the explanation
Show-cause notice
Holding of a full-fledged enquiry
Considering the enquiry proceeding and findings and making final
order of punishment
Follow up
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DISCIPLINARY PROCEDURES
Types of punishment
Oral warnings
Written warnings
Loss of privilege and fines
Punitive suspensions
Withholding of increments
Demotion
Termination
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The traditional management/ administration believed that lower level employees
do not have managerial skills, managerial knowledge and managerial aptitude
Increase in levels of formal education, increase in the contents in the
educational program me's, entry of high qualified candidates even at the lower
level of the organization made the managements to realize that even the
employees at the lower level can take operational and executive decision, if they
are
Provided with the required additional skills and knowledge through training
and development
Are delegated with the required authority and responsibility
Some of the modern management enabled the employees to take executive and
operational decisions and also implement them by providing training and
development and delegating authority and responsibility
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EMPOWERMENT
Meaning: Empowerment refers to enabling a lower level employees to make all the
decisions required for carrying out his duties or discharge his responsibilities on his
own and implement them.
Definition: according to Newstrom and Davis Empowerment is the process that
provides greater autonomy through the sharing or relevant information and
provision of control over factor affecting job performance”
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APPROACHES TO EMPOWERMENT
Approaches to Empowerment: The real problem is in fact, how to empower
employees. Like other behavioral problems, the researchers have studied the
problem and have suggested five broad approaches to empowerment
Helping employees achieve job mastery
Allowing more control
Providing successful role model
Using social strengthening and persuasion
Giving emotional support
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DIMENSIONS OF EMPOWERMENT
Four dimension of Empowerment
Impact : Perceived to make a difference in terms of accomplishing
purpose of the task
Competence: Skilful trying of a job results in the task to improve
competence
Meaningful: If a task is worthwhile, it provides meaningfulness
Choice: A task provides choice if it allows the employee self-
determination in performing task activities
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Conditions necessary for Empowerment
Participation
Innovation
Information
accountability
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FORMS OF EMPOWERMENT
Quality circle: It is a work of employees who meet regularly to discuss
their quality problem, investigate causes, recommend solution, and take
corrective actions
Empowered teams: Closely related to QC is empowered team also called
‘self – directed team’ or ‘self –managing team’
These are the teams allowed to run the show by themselves
These are the groups that are given a large degree of decision-making
autonomy and are expected to control their own behaviour and results
How to develop empowered teams?
Identification of responsibility
Methods of monitoring and feedback
Specification of member’s responsibilities
Determination of training needs
Work plan for transition
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COLLECTIVE BARGAINING
It is industrial democracy at work
Collective bargaining is not a competitive process but it is essentially a
complementary one.
It is an art and an advanced form of human relation
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IMPORTANCE OF COLLECTIVE
BARGAINING:
Collective bargaining plays a vital role in setting and preventing industrial disputes.
Increases the economic strength of unions and management
Establish uniforms condition of employment with a view to avoiding industrial disputes
and maintaining stable peace in the industry
Secure a prompt and fair redresal of grievance
Avoid interruption in work which follow strikes go-slow tactics and similar coercive
activities
Lay down fair rates of wages and norms of working condition
Achieve an efficient operation of the plan
Promote the stability and prosperity of the industry
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CONDITIONS FOR THE SUCCESS OF
COLLECTIVE BARGAINING
Constructive consultation between the trade union and the management is
possible only when the bargaining power of two parties is relatively equal and is
exercised with responsibility and discrimination
The willing acceptance by the management to recognize representative union for
this purpose
Both the parties must have mutual confidence, good faith and a desire to make
collective bargaining machinery a success
Unions must understand the economic implication of collective bargaining and
realize that union demand must be met from the income and resource of the
organization
The process of bargaining should be free from unfair practices
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CONDITIONS FOR THE SUCCESS OF
COLLECTIVE BARGAINING
Both the parties should represent the rights and responsibilities of each
other
The parties involved in collective bargaining should be prepared to give
away something in order to gain something
Both the parties to collective bargaining should observe and follow the
term and condition of previous agreement that are reached
Collective bargaining being a continuous process, can be effective only
with the successful implementation of previous agreement
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CONDITIONS FOR THE SUCCESS OF
COLLECTIVE BARGAINING
Any lapse on the part of any party concerned show its effect on
the present process
The representatives of both the parties should fully understand
and be clear about the problem and their implications
The workers can make effective use of collective bargaining
process to achieve participation management and good working
conditions
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FUNCTIONS OF COLLECTIVE BARGAINING
Increase the economic strength of employees and management
Establish uniform conditions of employment
Secure a prompt and fair equalization of grievance
Lay down fair rates of wages and other norms of working conditions
Achieve an efficient functioning of the organization
Promote the stability and prosperity of the company
It provides a method of the regulation of the conditions of employment of those
who are directly concerned about them
It provides a solution to the problem of sickness in the industry and ensures old-
age pension benefits and other fringe benefits
It ensure that the management is conducted by rules rather then by random
decisions
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STAGES OF COLLECTIVE BARGAINING
Prenegotiation Phase
The selection of Negotiators
The Strategy of Bargaining
The Tactics of Bargaining
The Contract
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Problems faced during collective bargaining
Problems with unions
Problems from government
Legal problems
Political interference
Attitude of management
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HR AUDIT
An audit is an examination and verification of accounts and records
HR audit refers to an examination and evaluation of polices,
procedures and practices to determine the effectiveness and
efficiency of HRM
The measurement of the effectiveness of the human resource
management’s mission, objectives, strategies, policies, procedures,
programmes and activities
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Objectives of HR audit
To review the whole system of management programmes in which a
management develops, allocates and supervises human resources in an
organization with a view of determining the effectiveness of these programme
To seek explanations and information, that is, to get answer to such questions
as “why did it happen?’ and “ what happened”
To evaluate and extent to which line managers have implemented the policies
which have already been initiated
According to Gray “ the primary purpose of personnel audit is to know how
the various units are functioning and how they have been able to meet the
policies and guidelines which were agreed upon; and to assist the rest of the
organization by identifying the gap between objectives and result for the end
product of an evaluation should be to formulate plans for corrections or
adjustment
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PROCESS OF HR AUDIT
Human Resource
Functions
Managerial
Compliance
Employee
Satisfaction
Corporate
Strategy
Comparison
Outside Authority
Statistical
Compliance
MBO
Human Resource
Research
Evaluation
Report
Scope
Approaches
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COUNSELLING FOR EFFECTIVE HRD
• Employees face a variety of uncertainties, issues and problems both at
the work and the family. In fact these problem are multi faceted
involving economic, social, psychological and religious consideration
• Counselling is one of the efficient intervention to find out work and
family related employee problems that affect the work negatively
• Counselling is the process of helping other persons to find out and act
upon a solution to their problem anxieties, uncertainties and issues
• The person conducting counselling is called counsellor and the person
being counselled is called counsellee or client
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CONCEPT OF COUNSELLING
• Counsellor is mostly concerned with the client rather than the problem
• The counsellor helps the counsellee to identify his own problem and
develop his own solution rather than imposing his solution
• Counselling can assist the employee to resolve difficulties in a
supportive and professional setting
• Counselling is confidential and private
• Counselling can assist the employee to understand the problem, its
impact and to develop strategies to cope with it
• Counselling can result in quicker and less stressful resolution of the
problem with less disruption to the workplace
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• Counselling is provided for work and personal issues
– Stress
– Change
– Conflict
– Career planning
– Communication
– Shock
– Depression
– Relationship issues
– Family problem
– Gambling
– Sorrow and pain
– Anxiety
– Drug and alcohol problem
– Work satisfaction
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• Process of counselling
– Identifying the needs for counselling
– Communicating effectively
– Managing the counselling interview
• Setting up the interview
• Creating the right interview opportunity
• Starting the interview
• Encouraging the people to talk
• Reaching the core problem
• Discovering when to ask and what to ask
• Exploring the feelings
• Solving the underlying problem
• Develop and provide the solution
– Controlling emotions
– Follow-up
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Factors that has an impact in the workplace
Restructuring and organizational change
Conflict
Work related stress
Career transition
Staff morale
What constitute counselling
Telling
Advising
Manipulating
counselling
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Counselling in organization
Career counselling
Performances counselling
Idleness counselling
Corrective counselling
Grievance counselling
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