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CHAPTER 1

UNDERSTANDING HUMAN RESOURCE MANAGEMENT

What is Human Resource Management and why it is important– The Management process involves the following functions: planning, organizing, staffing, leading, and controlling. The “people” or personnel aspects of management jobs involve conducting job analysis; planning labor needs and recruiting job candidates; selecting job candidates; orienting and training new employees; managing wages and salaries; providing incentives and benefits; appraising performance; communicating; training and developing managers; building employee commitment; being knowledgeable about equal opportunity, affirmative action, and employee health and safety; and handling grievances and labor relations.

A. Why Is HR Management Important to All Managers? Managers don’t want to make

mistakes while managing, such as hiring the wrong person, having their company taken to court because of discriminatory actions, or committing unfair labor practices.

B. Line and Staff Aspects of HRM – Although most firms have a human resource

department with its own manager, all managers tend to get involved in activities like recruiting, interviewing, selecting, and training.

C. Line Managers’ HR Duties – Most line managers are responsible for line functions,

coordinative functions, and some staff functions. D. Human Resource Manager’s Duties – Human Resource Managers also have line,

coordinative, and staff functions. However, they exert line authority only within the HR department. They have implied authority with line managers due to the fact that they have the ear of top management on many important issues contributing to organizational health.

E. New Approaches to Organizing HR – Employers are experimenting with offering

human resource services in new ways. For example, some employers organize their HR services around the following four groups: transactional, corporate, embedded, and centers of expertise.

F. Cooperative Line and Staff HR Management: An Example – In recruiting and hiring,

it’s generally the line manager’s responsibility to specify the qualifications employees need to fill specific positions. Then the HR staff takes over. They develop sources of qualified applicants and conduct initial screening interviews. They administer appropriate tests, then refer the best applicants to the supervisor (line manager), who interviews and selects the ones he/she wants.

Moving from Line Manager to HR Manager: Line managers may make career stopovers in staff HR manager positions

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Evolution of HRM In 1909, Fredrick Taylor published "The Principles of Scientific Management." In this, he proposed that by optimizing and simplifying jobs, productivity would increase. He also advanced the idea that workers and managers needed to cooperate with one another. This was very different from the way work was typically done in businesses beforehand. A factory manager at that time had very little contact with the workers, and he left them on their own to produce the necessary product. There was no standardization, and a worker's main motivation was often continued employment, so there was no incentive to work as quickly or as efficiently as possible. Taylor believed that all workers were motivated by money, so he promoted the idea of "a fair day's pay for a fair day's work." In other words, if a worker didn't achieve enough in a day, he didn't deserve to be paid as much as another worker who was highly productive.

In 1922, Elton Mayo’s team conducted experiments referred to as the Hawthorne experiments or Hawthorne studies as they took place at The Hawthorne Works of the Western Electric Company in Chicago. Over the course of five years, Mayo’s team altered the female worker’s working conditions and monitored how the change in working conditions affected the workers morale and productivity. The changes in working conditions included changes in working hours, rest brakes, lighting, humidity, and temperature. The changes were explained to the workers prior to implementation. After analysing the results from the Hawthorne experiments Mayo concluded that workers were motivated by more than self-interest, social aspect at work, peers, team working, and recognizing good work. The traditional view of how to motivate employees is that you offer monetary rewards (pay increases, bonuses etc) for work completion. However the Hawthorne experiments may suggest that motivation is more complicated than that. Advocates of the "Hawthorne Effect" will state that the Hawthorne experiment results show that motivation can be improved through improving working relationships and social interaction

Personnel Vs Human Resource Management

1. Personnel management is a traditional approach of managing people in the organization. Human resource management is a modern approach of managing people and their strengths in the organization.

2. Personnel management focuses on personnel administration, employee welfare and

labor relation. Human resource management focuses on acquisition, development, motivation and maintenance of human resources in the organization.

3. Personnel management assumes people as a input for achieving desired output.

Human resource management assumes people as an important and valuable resource for achieving desired output.

4. Under personnel management, personnel function is undertaken for employee's

satisfaction. Under human resource management, administrative function is undertaken for goal achievement.

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5. Under personnel management, job design is done on the basis of division of labor. Under human resource management, job design function is done on the basis of group work/team work.

6. Under personnel management, employees are provided with less training and

development opportunities. Under human resource management, employees are provided with more training and development opportunities.

7. In personnel management, decisions are made by the top management as per the rules

and regulation of the organization. In human resource management, decisions are made collectively after considering employee's participation, authority, decentralization, competitive environment etc.

8. Personnel management focuses on increased production and satisfied employees.

Human resource management focuses on effectiveness, culture, productivity and employee's participation.

9. Personnel management is concerned with personnel manager. Human resource

management is concerned with all level of managers from top to bottom.

10. Personnel management is a routine function. Human resource management is a strategic function.

HRM Models

The Harvard Model

The Harvard model claims to be comprehensive in as much as it seeks to comprise six critical components of HRM. The dimensions included in the model are: stakeholders, interests, situational factors, HRM policy choices, HR outcomes, long-term consequences and a feedback loop through. The outputs flow directly into the organization and the stakeholders

The Guest Model Yet another human resource management model was developed by David Guest in 1997 and claims to be much superior to other models. The details will justify the claim. This model claims that the HR manager has specific strategies to begin with, which demand certain practices and when executed, will result in outcomes. These outcomes include behavioral, performance related and financial rewards. The model emphasizes the logical sequence of six components: HR strategy, HR practices, HR outcomes, behavioral outcomes, performance results and financial consequences. Looking inversely, financial results depend on employee performance, which in turn is the result of action oriented employee behaviors. Behavioral outcomes are the result of employee commitment, quality and flexibility, which, in turn are impacted by HR practices. HR practices need to be in tune with HR strategies which are invariably aligned with organizational strategies. The claim of the Guest model that it is superior to others is partly justified in the sense that it clearly maps out the field of HRM and delineates the inputs and outcomes. But

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the dynamics of people management are so complex that no model (including the Guest model) can capture them comprehensively.

Dave Ulrich Model Dave Ulrich has long championed the role of the strategic Business Partner, linking it to a business imperative for a more pro-active approach from HR with less reliance on operational expertise. Ulrich’s thinking (1997) was that HR needed to transform itself with a focus on adding value through four key roles, each of which needed to work as a “Business Partner” with a specific outcome or deliverable in focus. Ulrich describes the four roles as follows: Strategic Partners – with a focus on strategy execution and meeting customer

needs through aligning HR priorities; Administrative Experts – ensuring efficiency in the infrastructure; supporting

the business and improving organisational efficiency by re-engineering the HR function and other work processes;

Employee Champion – paying attention to increasing employee commitment and capability through listening and responding to their needs; and

Change Agents – deliver operational transformation and culture change.” Importance of Human Resource Management An organisation cannot build a good team of working professionals without good Human Resources. The key functions of the Human Resources Management (HRM) team include recruiting people, training them, performance appraisals, motivating employees as well as workplace communication, workplace safety, and much more. The beneficial effects of these functions are discussed here: Recruitment This is one of the major responsibilities of the human resource team. The HR managers come up with plans and strategies for hiring the right kind of people. They design the criteria which is best suited for a specific job description. Their other tasks related to recruitment include formulating the obligations of an employee and the scope of tasks assigned to him or her. Based on these two factors, the contract of an employee with the company is prepared. Training When needed, HR also provide training to the employees according to the requirements of the organisation. Thus, the staff members get the opportunity to sharpen their existing skills or develop specialised skills which in turn, will help them to take up some new roles. Performance Appraisals HRM encourages the people working in an organisation, to work according to their potential and gives them suggestions that can help them to bring about improvement in it. The team communicates with the staff individually from time to time and provides all the necessary information regarding their performances and also defines their respective roles. This is beneficial as it enables them to form an outline of their anticipated goals in much clearer terms and thereby, helps them execute the goals with best possible efforts. Performance appraisals, when taken on a regular basis, motivate the employees.

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Maintaining Work Atmosphere This is a vital aspect of HRM because the performance of an individual in an organisation is largely driven by the work atmosphere or work culture that prevails at the workplace. A good working condition is one of the benefits that the employees can expect from an efficient human resource team. A safe, clean and healthy environment can bring out the best in an employee. A friendly atmosphere gives the staff members job satisfaction as well. Managing Disputes In an organisation, there are several issues on which disputes may arise between the employees and the employers. You can say conflicts are almost inevitable. In such a scenario, it is the human resource department which acts as a consultant and mediator to sort out those issues in an effective manner. They first hear the grievances of the employees. Then they come up with suitable solutions to sort them out. In other words, they take timely action and prevent things from going out of hands. Developing Public Relations The responsibility of establishing good public relations lies with the HRM to a great extent. They organise business meetings, seminars and various official gatherings on behalf of the company in order to build up relationships with other business sectors. Sometimes, the HR department plays an active role in preparing the business and marketing plans for the organisation too. Any organisation, without a proper setup for HRM is bound to suffer from serious problems while managing its regular activities. For this reason, today, companies must put a lot of effort and energy into setting up a strong and effective HRM.

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CHAPTER 2

HUMAN RESOURCE PLANNING Meaning of Human Resource Planning: Human resource is the most important asset of an organisation. Human resources planning is the important managerial function. It ensures the right type of people, in the right number, at the right time and place, who are trained and motivated to do the right kind of work at the right time, there is generally a shortage of suitable persons. The enterprise will estimate its manpower requirements and then find out the sources from which the needs will be met. If required manpower is not available then the work will suffer. Developing countries are suffering from the shortage of trained managers. Job opportunities are available in these countries but properly trained personnel are not available. In order to cope human resource requirements, an enterprise will have to plan in advance its needs and the sources. The terms human resource planning and manpower planning are generally used interchangeably. Human resource planning is not a substitute for manpower planning. Rather the latter is a part of the former i.e., manpower planning is integrated with human resource planning. Definition Human Resource Planning: According to E.W. Vetter, human resource planning is “the process by which a management determines how an organisation should make from its current manpower position to its desired manpower position. Through planning a management strives to have the right number and the right kind of people at the right places, at the right time to do things which result in both the organisation and the individual receiving the maximum long range benefit.” Dale S. Beach has defined it as “a process of determining and assuring that the organisation will have an adequate number of qualified persons available at the proper times, performing jobs which meet the needs of the enterprise and which provide satisfaction for the individuals involved.” In the words of Leon C. Megginson, human resource planning is “an integration approach to performing the planning aspects of the personnel function in order to have a sufficient supply of adequately developed and motivated people to perform the duties and tasks required to meet organisational objectives and satisfy the individual’s needs and goals of organisational members.” On the analysis of above definitions, human resource planning may be viewed as foreseeing the human resource requirements of an organisation and the future supply of human resources and making necessary adjustments between these two and organisation plans, and foreseeing the possibility of developing the supply of human resources in order to match it with requirements by introducing necessary changes in the functions of human resource management. Here, human resource means skill, knowledge, values, ability, commitment, motivation etc., in addition to the number of employees. Though accomplishment of organisational objectives

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and goals is the primary concern of the human resource planning, concern for the aspirations of the people and their well-being has equal importance in it. In fact, the human resources planning must result in humanisation of work environment.

Techniques to HRP

Managerial Judgment Managers use their judgment to anticipate manpower needs. The most widely used method due to ease & “confidence” of managers. May involve a ‘bottom-up’ or a ‘top-down’ approach.Generallymanagers look at the following to plan out their manpower needs 1. Business plans, 2. Growth estimates 3. Anticipated Sales & Production numbers 4. Budgets

Ratio-Trend Analysis

Historical Trends /Ratios between headcount with some variable e.g. sales numbers, production figures, number of customers and headcount of other employees etc are studied and used to anticipate future people demand. E.g. If sales force of 10 people generate 1 crore sales per annum, one will need 4 more people if anticipating sales of 1.4 crore.

Delphi Technique Named after the ancient Greek oracle at the city of Delphi.Helps to capture knowledge of diverse experts while avoiding disadvantages of traditional group meetings. The administrator engages with 5-20 suitable experts & poll them for their forecasts with reasons. The administrator feeds back the consolidated data from all participants with their reasons (anonymous) and asks them to provide him their revised forecasts. The process is repeated until there is little change in forecasts between various participants.

Regression Analysis

A firm first draws a diagram depicting the relationship between sales and workforce size. It then calculates regression line – a line that cuts right through the center of the points on the diagram. By observing the regression line, one can find out number of employees required at each volume of sales.

Succession Planning

Sales (X)

Employee Size (Y)

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A succession plan, simply put, is a component of good HR planning and management. Succession planning acknowledges that staff will not be with an organization indefinitely and it provides a plan and process for addressing the changes that will occur when they leave. Most succession planning focuses on the most senior manager - the executive director, however, all key positions should be included in the plan. Key positions can be defined as those positions that are crucial for the operations of your organization and, because of skill, seniority and/or experience, will be hard to replace. Whenever size and resources permit, a succession plan should involve nurturing and developing employees from within an organization. Employees who are perceived to have the skills, knowledge, qualities, experience and the desire can be groomed to move up to fill specific, key positions. Organizations should:

Assess their current and future needs based on either their strategic plan, goals and objectives, or priority programs and projects

Match these to the capabilities of the existing workforce Develop a plan to manage the gaps that will arise when individuals in key

positions leave or are promoted

The plan will generally include a combination of training and developing existing staff, and external recruitment. An effective Human Resource Planning is the key to effective Recruitment and Selection for the company.

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CHAPTER 3

JOB ANALYSIS & JOB DESIGN The Basics of Job Analysis Job analysis – The procedure for determining the duties and skill requirements of a job and the kind of person who should be hired for the job by collecting the following types of information: work activities; human behaviors; machines, tools, equipment, and work aids; performance standards; job context; and human requirements. Job description – A list of a job’s duties, responsibilities, reporting relationships, working conditions, and supervisory responsibilities. Job specification – A list of a job’s “human requirements”: the requisite education, skills, knowledge, and so on.

A. Uses of Job Analysis Information

1. Recruitment and Selection – Job descriptions and job specifications are formed from the information gathered from a job analysis, which help management decide what sort of people to recruit and hire.

2. Compensation – The estimated value and the appropriate compensation for each job is determined from the information gathered from a job analysis.

3. Training – Based on the job analysis, the job description should show the job’s required activities and skills.

4. Performance Appraisal – Managers use job analysis to determine a job’s specific activities and performance standards.

5. Discovering Unassigned Duties – Job analysis can help reveal unassigned duties.

B. Steps in Job Analysis

1. Decide how the information will be used because that will determine what data will be collected and how it should be collected.

2. Review relevant background information, such as organization charts, process charts, and job descriptions.

3. Select representative positions to analyze because there may be too many similar jobs to analyze, and it may not be necessary to analyze them all.

4. Analyze the job by collecting data on job activities, required employee behaviors, working conditions, and human traits and abilities needed to perform the job.

5. Verify the job analysis information with job incumbents and supervisors to confirm that it is factually correct and complete.

Methods for Collecting Job Analysis Information An HR specialist (an HR specialist, job analyst, or consultant), an employee, and the employee’s supervisor usually work together in conducting the job analysis. In most manufacturing companies’ data is also collected through the workers working in the shop floor. Job analysis data is usually collected from employees and supervisors familiar with the job (subject matter experts) using interviews and questionnaires. The data is then averaged, taking into account the departmental context of the employees, to determine how much time a typical employee spends on each of several specific tasks. It is important to make sure that

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surveys and questions are clear and understandable, and that respondents are observed and questioned early in the process to allow time for adjustments, if needed. A. The Interview

The three types of interviews managers use to collect job analysis data are: individual (to get the employee’s perspective on the job’s duties and responsibilities, group (when large numbers of employees perform the same job), and supervisor (to get his/her perspective on the job’s duties and responsibilities).

1. Typical Questions – “What is the job being performed?” “In what activities do

you participate?” “What are the health and safety conditions?” 2. Structured Interviews – You can also use a structured or checklist format to guide the

interview. 3. Pros & Cons – of using an interview are that it is: simple, quick, and more

comprehensive because the interviewer can unearth activities that may never appear in written form. The main problem is distortion, which may arise from the jobholder’s need to impress the perceptions of others.

Questionnaires Structured or unstructured questionnaires may be used to obtain job analysis information. Questionnaires can be a quick, efficient way of gathering information from a large number of employees. But, developing and testing a questionnaire can be expensive and time consuming.

Observation Direct observations are useful when jobs consist of mainly observable physical activity as opposed to mental activity. Reactivity can be a problem with direct observations, which is where the worker changes what he/she normally does because he/she is being watched. Managers often use direct observation and interviewing together.

Participant Diary/Logs The employee records every activity he/she engages in, in a diary or log along with the amount of time to perform each activity to produce a complete picture of the job. Pocket dictating machines can help remind the worker to enter data at specific times, and eliminates the challenge of trying to remember at a later time what was done. Develop a job description and job specification from the information. Increasingly, these steps are being streamlined through the use of collaboration software. Though preparing job description and job specification are not legal requirements yet play a vital role in getting the desired outcome. These data sets help in determining the necessity, worth and scope of a specific job. Job Description Job description includes basic job-related data that is useful to advertise a specific job and attract a pool of talent. It includes information such as job title, job location, reporting to and of employees, job summary, nature and objectives of a job, tasks and duties to be performed, working conditions, machines, tools and equipment to be used by a prospective worker and hazards involved in it.

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Purpose of Job Description The main purpose of job description is to collect job-related data in order to advertise for

a particular job. It helps in attracting, targeting, recruiting and selecting the right candidate for the right job.

It is done to determine what needs to be delivered in a particular job. It clarifies what employees are supposed to do if selected for that particular job opening.

It gives recruiting staff a clear view what kind of candidate is required by a particular department or division to perform a specific task or job.

It also clarifies who will report to whom.

Job Specification Also known as employee specifications, a job specification is a written statement of educational qualifications, specific qualities, level of experience, physical, emotional, technical and communication skills required to perform a job, responsibilities involved in a job and other unusual sensory demands. It also includes general health, mental health, intelligence, aptitude, memory, judgment, leadership skills, emotional ability, adaptability, flexibility, values and ethics, manners and creativity, etc. Purpose of Job Specification Described on the basis of job description, job specification helps candidates to analyze

whether they are eligible to apply for a particular job vacancy or not. It helps recruiting team of an organization understand what level of qualifications,

qualities and set of characteristics should be present in a candidate to make him or her eligible for the job opening.

Job Specification gives detailed information about any job including job responsibilities, desired technical and physical skills, conversational ability and much more.

It helps in selecting the most appropriate candidate for a particular job.

Job description and job specification are two integral parts of job analysis. They define a job fully and guide both employer and employee on how to go about the whole process of recruitment and selection. Both data sets are extremely relevant for creating a right fit between job and talent, evaluate performance and analyze training needs and measuring the worth of a particular job. Job Design Job design is the process of Work arrangement (or rearrangement) aimed at reducing or overcoming job dissatisfaction and employee alienation arising from repetitive and mechanistic tasks. Through job design, organizations try to raise productivity levels by offering non-monetary rewards such as greater satisfaction from a sense of personal achievement in meeting the increased challenge and responsibility of one's work. Job enlargement, job enrichment, and job rotation, are the various techniques used in a job design exercise. Job Enlargement Horizontal loading of job- expands the scope generally by combining more than one job so more variety and wholeness. E.g. A driver is given additional tasks of computer data entry at office between schedules (waiting)

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Job Enrichment It is the Vertical loading of job. The employee is responsible for the next step processes as well. More responsibility within own function to set their own pace, deciding their own methods, increasing their autonomy. E.g. A stores person directly making his own dispatch plans Job Rotation The Employee is rotated from one job to another job to add variety. It breaks monotony of performing highly specialized job by placing persons on different skills &abilities. It also helps them acquire new skills. E.g.: Let's say you are a junior executive at a multinational consulting firm on the fast track. Your mentor and supervisor have just informed you that you have been approved for the company's advance executive training program. You will spend the next two years rotating from your home office to the headquarters in New York, to the company's office in London, then onto Dubai, and finally onto Hong Kong before returning to your home office. Your job responsibilities will change a bit at each office, but you will basically still serve as a financial analyst. Upon your return, you will receive an important promotion so long as the rotations are successful.

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CHAPTER 4

RECRUITMENT

The process of finding and hiring the best-qualified candidate for a job opening, in a timely and costeffective manner is known as Recruitment. The recruitment process includes analyzing the requirements of a job, attracting employees to that job, screening and selecting applicants, hiring, and integrating the new employee to the organization. Recruiting is a more complex activity than most managers think it is. Recruitment efforts should make sense in terms of the company’s strategic plans. Some recruiting methods are superior to others, depending on who you are recruiting for and what your resources are. The success you have with your recruiting actually depends on non-recruitment HR issues and policies, including pay levels. Recruitment is a positive process of searching for prospective employees and stimulating them to apply for the jobs in the organisation. When more persons apply for jobs then there will be a scope for recruiting better persons. The job-seekers too, on the other hand, are in search of organisations offering them employment. Recruitment is a linkage activity bringing together those with jobs and those seeking jobs. In simple words, the term recruitment refers to discovering the source from where potential employees may be selected. The scientific recruitment process leads to higher productivity, better wages, high morale, reduction in labour turnover and enhanced reputation. It stimulates people to apply for jobs; hence it is a positive process. Recruitment is concerned with reaching out, attracting, and ensuring a supply of qualified personnel and making out selection of requisite manpower both in their quantitative and qualitative aspect. It is the development and maintenance of adequate man- power resources. This is the first stage of the process of selection and is completed with placement. Process of Recruitment: Recruitment Process Passes through the Following Stages: (i) Searching out the sources from where required persons will be available for recruitment. If young managers are to be recruited then institutions imparting instructions in business administration will be the best source. (ii) Developing the techniques to attract the suitable candidates. The goodwill and reputation of an organisation in the market may be one method. The publicity about the company being a professional employer may also assist in stimulating candidates to apply. (iii) Using of good techniques to attract prospective candidates. There may be offers of attractive salaries, proper facilities for development, etc. (iv) The next stage in this process is to stimulate as many candidates as possible to apply for jobs. In order to select a best person, there is a need to attract more candidates.

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Factors Affecting Recruitment There are a number of factors that affect recruitment. These are broadly classified into two categories: 1. Internal Factors: The internal factors also called endogenous factors are the factors within the organisation that affect recruiting personnel in the organisation. Some of these are mentioned here. a. Size of the Organisation: The size of an organisation affects the recruitment process. Experience suggests that larger organisations find recruitment less problematic than organisations with smaller in size. b. Recruiting Policy: The recruiting policy of the organisation i.e., recruiting from internal sources (from own employees) and from external sources (from outside the organisation) also affects recruitment process. Generally, recruiting through internal sourcing is preferred, because own employees know the organisation and they can well fit into the organisation’s culture. c. Image of Organisation: Image of organisation is another internal factor having its influence on the recruitment process of the organisation. Good image of the organisation earned by a number of overt and covert actions by management helps attract potential and competent candidates. Managerial actions like good public relations, rendering public services like building roads, public parks, hospitals and schools help earn image or goodwill for the organisation. That is why blue chip companies attract large number of applications. 2. External Factors: Like internal factors, there are some factors external to organisation which has their influence on recruitment process. Some of these are given below: a. Demographic Factors: As demographic factors are intimately related to human beings, i.e., employees, these have profound influence on recruitment process. Demographic factors include sex, age, literacy, economic status etc. b. Labour Market: Labour market conditions i.e., supply and demand of labour is of particular importance in affecting recruitment process. For example, if the demand for a specific skill is high relative to its supply, recruiting employees will involve more efforts. On the contrary, if supply is more than demand for a particular skill, recruitment will be relatively easier. In this context, the observation made by 11th Prime Minister of India Atal Bihari Vajpayee in regard to labour market in India is worth citing: “The most striking feature in the Indian Labour market is the apparent abundance of labour – yet the ‘right type’ of labour is not too easy to find”.

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c. Unemployment Situation: The rate unemployment is yet another external factor having its influence on the recruitment process. When the unemployment rate in a given area is high, the recruitment process tends to be simpler. The reason is not difficult to seek. The number of applicants is expectedly very high which makes easier to attract the best qualified applicants. The reverse is also true. With a low rate of unemployment, recruiting process tends to become difficult. d. Labour Laws: There are several labour laws and regulations passed by the Central and State Governments that govern different types of employment. These cover working conditions, compensation, retirement benefits, and safety and health of employees in industrial undertakings. Child Labour (Prohibition and Regulation) Act, 1986, for example, prohibits employment of children in certain employments. Similarly, several other acts such as Employment Exchange (Compulsory Notification of Vacancies) Act, 1959, the Apprentices Act, 1961; die Factory Act, 1948 and the Mines Act, 1952 deal with recruitment. e. Legal Considerations: Another external factor is legal considerations with regard to employment. Reservation of jobs for the scheduled castes, scheduled tribes, and other backward classes (OBCs) is the popular example of such legal consideration. The Supreme Court of India has given its verdict in favour of 50 per cent of jobs and seats. This is so in case of admissions in the educational institutions also. Sources of Recruitment Every organisation has the option of choosing the candidates for its recruitment processes from two kinds of sources: internal and external sources. The sources within the organisation itself (like transfer of employees from one department to other, promotions) to fill a position are known as the internal sources of recruitment. Recruitment candidates from all the other sources (like outsourcing agencies etc.) are known as the external sources of recruitment. A. Internal Sources: 1. Present Employees: Promotions and transfers from among the present employees can be a good source of recruitment. Promotion implies upgrading of an employee to a higher position carrying higher status, pay and responsibilities. Promotion from among the present employees is advantageous because the employees promoted are well acquainted with the organisational culture, they get motivated, and it is cheaper also. Promotion from among present employees also reduces the requirement for job training. However, the disadvantage lies in limiting the choice to a few people and denying hiring of outsiders who may be better qualified and skilled. Furthermore, promotion from among present employees also results in inbreeding which creates frustration among those not promoted. Transfer refers to shifting an employee from one job to another without any change in the position/post, status and responsibilities. The need for transfer is felt to provide employees a broader and varied base which is considered necessary for promotions. Job rotation, involves transfer of employees from one job to another on the lateral basis.

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2. Former Employees: Former employees are another source of applicants for vacancies to be filled up in the organisation. Retired or retrenched employees may be interested to come back to the company to work on a part-time basis. Similarly, some former employees who left the organisation for any reason may again be interested to come back to work. This source has the advantage of hiring people whose performance is already known to the organisation. 3. Employee Referrals: This is yet another internal source of recruitment. The existing employees refer their family members, friends and relatives to the company as potential candidates for the vacancies to be filled up in the organisation. This source serves as one of the most effective methods of recruiting people in the organisation because employees refer to those potential candidates who meet the company requirements known to them from their own experience. The referred individuals are expected to be similar in type in terms of race and sex, for example, to those who are already working in the organisation. 4. Previous Applicants: This is considered as internal source in the sense that applications from the potential candidates are already lying with the organisation. Sometimes, the organisations contact through mail or messenger these applicants to fill up the vacancies particularly for unskilled or semi- skilled jobs. Evaluation of Internal Source: Let us try to evaluate the internal source of recruitment. Obviously, it can be done in terms of its advantages and disadvantages. The same are spelled out as follows: Advantages: The advantages of the internal source of recruitment include the following: 1. Familiarity with own employees: The organisation has more knowledge and familiarity with the strengths and weaknesses of its own employees than of strange and unknown outsiders. 2. Better use of the talent: The policy of internal recruitment also provides an opportunity to the organisation to make a better use of the talents internally available and to develop them further and further. 3. Economical Recruitment: In case of internal recruitment, the organisation does not need to spend much money, time and effort to locate and attract the potential candidates. Thus, internal recruitment proves to be economical, or say, inexpensive. 4. Improves Morale: This method makes employees sure that they would be preferred over the outsiders as and when vacancies will be filled up in their organisation. 5. A Motivator: The promotion through internal recruitment serves as a source of motivation for employees to improve their career and income. The employees feel that organisation is a place where they

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can build up their life-long career. Besides, internal recruitment also serves as a means of attracting and retaining competent employees in the organisation. Disadvantages: The main drawbacks associated with internal recruitment are as follows: 1. Limited Choice: Internal recruitment limits its choice to the talent available within the organisation. Thus, it denies the tapping of talent available in the vast labour market outside the organisation. Moreover, internal recruitment serves as a means for “inbreeding”, which is never j healthy for the future of the organisation. 2. Discourages Competition: In this system, the internal candidates are protected from competition by not giving opportunity to otherwise competent candidates from outside the organisation. This, in turn, develops a tendency among the employees to take promotion without showing extra performance. 3. Stagnation of Skills: With the feeling that internal candidates will surely get promoted, their skill in the long run may become stagnant or obsolete. If so, the productivity and efficiency of the organisation, in turn, decreases. 4. Creates Conflicts: Conflicts and controversies surface among the internal candidates, whether or not they deserve promotion. B. External Sources: External sources of recruitment lie outside the organisation. These outnumber internal sources. The main ones are listed as follows: 1. Employment Exchanges: The National Commission on Labour (1969) observed in its report that in the pre-Independence era, the main source of labour was rural areas surrounding the industries. Immediately after Independence, National Employment Service was established to bring employers and job seekers together. In response to it, the compulsory Notification of Vacancies Act of 1959 (commonly called Employment Exchange Act) was instituted which became operative in 1960. Under Section 4 of the Act, it is obligatory for all industrial establishments having 25 workers or more, to notify the nearest employment exchange of vacancies (with certain exceptions) in them, before they are filled. The main functions of these employment exchanges with their branches in most cities are registration of job seekers and their placement in the notified vacancies. It is obligatory for the employer to inform the outcome of selection within 15 days to the employment exchange. Employment exchanges are particularly useful in recruiting blue-collar, white-collar and technical workers. A study conducted by Gopalji on 31 organisations throughout the country also revealed that recruitment through employment exchanges was most preferred for clerical personnel i.e., white-collar jobs.

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2. Consultants: In addition to the government agencies, there are a number of private consultants who register candidates for employment and furnish a list of suitable candidates from their data bank as and when sought by the prospective employers. ABC Consultants, Datamatics, Ferguson Associates, S B Billimoria, etc. are the popular private employment agencies in our country. Generally, these agencies select personnel for supervisory and higher levels. The main function of these agencies is to invite applications and short list the suitable candidates for the organisation. Of course, the final decision on selection is taken by the representatives of the organisation. At best, the representatives of the employment agencies may also sit on the panel for final selection of the candidates. The employer organisations derive several advantages through this source. For example, this method proves cheaper than the one organisations recruiting themselves. The time saved in this method can be better utilized elsewhere by the organisation. As the organisational identity remains unknown to the job seekers, it, thus, avoids receiving letters and attempts to influence. However, there is always a risk of loosing out in screening process done by the agencies, some applicants whom the representatives of the organisation would have liked to meet and select. 3. Advertisement: Advertisement is perhaps the most widely used method for generating many applications. This is because its reach is very high. This method of recruitment can be used for jobs like clerical, technical and managerial. The higher the position in the organisation, the more specialized the skills or the shorter the supply of that resource in the labour market, the more widely dispersed the advertisements is likely to be. For example, the search for a top executive might include advertisements in a national daily like ‘The Hindu’. Some employers / companies advertise their posts by giving a post box number or the name of some recruiting agency This is done to particularly keep own identity secret to avoid unnecessary correspondence with the applicants. However, the disadvantage of this blind ad, i.e., post box number is that the potential job seekers are hesitant to apply without knowing the image of the organisation, on the one hand, and the bad image/reputation that blind ads have received because of organisations that place such advertisements without positions lying vacant just to know the supply of labour/workers in the labour market, on the other. While preparing advertisement, lot of care has to be taken to make it clear and to the point. It must ensure that some self-selection among applicants takes place and only qualified applicants respond to the advertisement. For this, advertisement copy should be prepared by using a four-point guide called AIDA. The letters in the acronym denote that advertisement should attract Attention, gain Interest, arouse a Desire and result in Action. However, not many organisations mention complete details about job positions in their advertisements. What happens is that ambiguously worded and broad-based advertisements may generate a lot of irrelevant applications which would, by necessity, increase the cost of processing them. Here, the findings of a study of 496 recruitment advertisements published in The Hindu during 1981 seem worth mentioning. It was found that 33.6% of public sector

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advertisements and 20.7% of private sector advertisements provided necessary information about job possibilities, tasks and reporting relationships. As far as compensation was concerned, more of the public sector organisations provided information about pay packets rather than the private sector organisations (71.2% as against 29.4%). Another interesting feature showed that all public sector organisations provided information on minimum qualifications while only 18.3% of private sector organisations offered this information. Finally, only 5.6% of the public and 1.1% of the private organisations provided information on selection process. 4. Professional Associations: Very often, recruitment for certain professional and technical positions is made through professional associations also called ‘ headhunters’. Institute of Engineers, Indian Medical Association, All Indian Management Association, etc., provide placement services for their members. For this, the professional associations prepare either list of job seekers or publish or sponsor journals or magazines containing advertisements for their members. The professional associations are particularly useful for attracting highly skilled and professional personnel. However, in India, this is not a very common practice and those few that provide such kind of service have not been able to generating a large number of applications. 5. Campus Recruitment: This is another source of recruitment. Though campus recruitment is a common phenomenon particularly in the American organisations, it has made its mark rather recently Of late, some organisations such as HLL, HCL. L &T, Citi Bank, ANZ Grindlays, Motorola, Reliance etc., in India have started visiting educational and training institutes/campuses for recruitment purposes. Examples of such campuses are the Indian Institutes of Management, Indian Institutes of Technology and the University Departments of Business Management. For this purpose, many institutes have regular placement cells/offices to serve as liaison between the employers and the students. Tezpur Central University has, for example, one Deputy Director (Training and Placement) for the purposes of campus recruitment and placement. The method of campus recruitment offers certain advantages to the employer organisations. First, the most of the candidates are available at one place; Second, the interviews are arranged at short notice; third, the teaching faculty is also met; and Fourth, it gives them opportunity to sell the organisation to a large student body who would be graduating subsequently. However, the disadvantages of this type of recruitment are that organisations have to limit their selection to only “entry” positions and they interview the candidates who have similar education and experience, if at all. Evaluation of External Sources: Like internal sources of recruitment, external sources are mixed of advantages and disadvan-tages.

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The following are the main advantages: 1. Open Process: Being a more open process, it is likely to attract large number of applicants/ applications. This, in turn, widens its options of selection. 2. Availability of Talented Candidates: With large pool of applicants, it becomes possible for the organisation to have talented candidates from outside. Thus, it introduces new blood in the organisation. 3. Opportunity to select the best candidates: With large pool of applicants, the selection process becomes more competitive. This increases prospects for selecting the best candidates. 4. Provides healthy competition: As the external members are supposed to be more trained and efficient. With such a background, they work with positive attitude and greater vigour. This helps create healthy competition and conducive work environment in the organisation. However, the external sources of recruitment suffer from certain disadvantages too: These are: 1. Expensive and Time Consuming: This method of recruitment is both expensive and time consuming. There is no guarantee that organisation wall get good and suitable candidates. 2. Unfamiliarity with the Organisation: As candidates come from outside the organisation, they are not familiar with the tasks, job nature and the internal scenario of the organisation. 3. Discourages the Existing Employees: Existing employees are not sure to get promotion. This discourages them to work hard. This, in turn, boils down to decreasing productivity of the organisation. Now the question arises is: Where from can an organisation recruit potential job seekers? Table 6.1 offers some guidance. The source that is used should reflect the local labour market, the type or level of position, and the size of the organisation. Recruitment Budget The recruitment process starts with the recruitment budget. The recruitment and staffing is not a cheap activity, and it consumes a large proportion of the global HR Budget. The recruitment budget has to be properly planned as the Finance guys love to stretch and cut it. The recruitment budget has to be prepared in a high detail, and it cannot be prepared quickly. It needs many meetings to reach the consensus about the recruitment initiatives to be run during the following year.

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The Recruiting Yield Pyramid

Some employers use a recruiting yield pyramid to calculate the number of applicants they must generate to hire the required number of new employees. The company knows it needs 75 new entry-level accountants next year. From experience, the firm also knows the ratio of offers made to actual new hires is 2 to 1; about half the people to whom it makes offers accept them. Similarly, the firm knows that the ratio of candidates interviewed to offers made is 3 to 2, while the ratio of candidates invited for interviews to candidates actually interviewed is about 4 to 3. Finally, the firm knows that of six leads that come in from all its recruiting efforts, only one applicant typically gets an interview call 6-to-1 ratio. Given these ratios, the firm knows it must generate 1,800 leads to be able to invite 300 viable candidates to its offices for interview. The firm will then get to interview about 225 of those invited, and from these it will make 150 offers. Of those 150 offers, about 75 will accept.

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CHAPTER 5

SELECTION Selection: Meaning Of Selection: Selection is the process of picking up individuals (out of the pool of job applicants) with requisite qualifications and competence to fill jobs in the organization. A formal definition of Selection is as under Definition of Selection: Process of differentiating “Selection is the process of differentiating between applicants in order to identify and hire those with a greater likelihood of success in a job.” Difference between Recruitment and Selection: Recruitment Selection 1. Recruitment refers to the process of identifying and encouraging prospective employees to apply for jobs. 2. Recruitment is said to be positive in its approach as it seeks to attract as many candidates as possible.

1. Selection is concerned with picking up the right candidates from a pool of applicants. 2. Selection on the other hand is negative in its application in as much as it seeks to eliminate as many unqualified applicants as possible in order to identify the right candidates.

Process / Steps in Selection 1. Preliminary Interview: The purpose of preliminary interviews is basically to eliminate unqualified applications based on information supplied in application forms. The basic objective is to reject misfits. On the other hands preliminary interviews is often called a courtesy interview and is a good public relations exercise. 2. Selection Tests: Jobseekers who past the preliminary interviews are called for tests. There are various types of tests conducted depending upon the jobs and the company. These tests can be Aptitude Tests, Personality Tests, and Ability Tests and are conducted to judge how well an individual can perform tasks related to the job. Besides this there are some other tests also like Interest Tests (activity preferences), Graphology Test (Handwriting), Medical Tests, Psychometric Tests etc. 3. Employment Interview: The next step in selection is employment interview. Here interview is a formal and in-depth conversation between applicant’s acceptability. It is considered to be an excellent selection device. Interviews can be One-to-One, Panel

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Interview, or Sequential Interviews. Besides there can be Structured and Unstructured interviews, Behavioral Interviews, Stress Interviews. 4. Reference & Background Checks: Reference checks and background checks are conducted to verify the information provided by the candidates. Reference checks can be through formal letters, telephone conversations. However it is merely a formality and selections decisions are seldom affected by it. 5. Selection Decision: After obtaining all the information, the most critical step is the selection decision is to be made. The final decision has to be made out of applicants who have passed preliminary interviews, tests, final interviews and reference checks. The views of line managers are considered generally because it is the line manager who is responsible for the performance of the new employee. 6. Physical Examination: After the selection decision is made, the candidate is required to undergo a physical fitness test. A job offer is often contingent upon the candidate passing the physical examination. 7. Job Offer: The next step in selection process is job offer to those applicants who have crossed all the previous hurdles. It is made by way of letter of appointment. 8. Final Selection Interviews and its Types Interview is a discussion between the interviewer and the interviewee for the selection of a candidate for a specific role in the organization. Best practices for effective interview

Interview preparation Interview content Interviewee’s expectations

Unstructured interviews: They do not follow a pre-decided order. Structured interviews: They follow a pre-decided order. Exploratory interviews are discussions and investigations of possibilities of

employment. Directive interviews use preset questions and follow a fixed pattern Stress interviews: They make the candidate feel stressed to assess their capability to

handle uncomfortable situations. Telephonic interview: An interview which is conducted over phone is known as a

telephonic interview. Video conferencing: Interviews are those interviews which use videophone and video-

conferencing facilities. Personal interview: The candidate meets one-on-one with an interviewer. Panel interviews: It involves two or more interviewers, interviewing the candidates. Situational interview: Candidates are given typical situations faced on the job and they

are assessed on how they would handle the situations. Behavioural interviews: Theyuse the past behaviour to predict the future behaviour of

the candidate

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CHAPTER 6

INDUCTION AND ORIENTATION

Employee Induction and Orientation, the words are often used synonymously though they are different in meaning and application. Induction refers to the process of introducing a new comer to his employer/ company and work environment. An induction session, conducted on day one for a new joiner, usually through PowerPoint presentation and videos sessions lasts a few hours or day. Orientation on the other hand, is a well-designed program which aims at reorganizing a new employee and making him accustomed to his department, job role and work culture. An orientation session may vary from 1 day to several days, depending on organizational and departmental requirement. INDUCTION –An introduction with who you are going to work for Includes

Company overview. Mission, Vision, Values History , objectives and clients Business verticals , management team and hierarchy Policies and dress code Business conduct guidelines Joining and Statutory Forms

ORIENTATION – Aligning with job role & responsibilities and work culture. Includes multiple learning methods

Presentation and videos Information sessions and online learning Workplace tour and Formal meetings with teams and departments. Information of procedures and processes Information of work assignment/ job, clients Introduction to team members and key contacts. Information about employment terms and conditions.

The process of employee induction and orientation differs from company to company and country to country but the aim of any induction & orientation program is to facilitate smooth transition of an employee into his new workplace and making that first positive impression that helps adding a committed and motivated employee. Organizational Socialization Organizational socialization is defined as a learning and adjustment process that enables an individual to assume an organizational role that fits both organizational and individual needs. It is a dynamic process that occurs when an individual assumes a new or changing role within an organization.Organization Socialization is also known as “On Boarding”. Research has demonstrated that these socialization techniques lead to positive outcomes for new employees such as higher job satisfaction, better job performance, greater organizational commitment, and reduction in occupational stress and intent to quit. These outcomes are particularly important to an organization looking to retain a competitive advantage in an increasingly mobile and globalized workforce.

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CHAPTER 7

TRAINING AND DEVELOPMENT

Training and development is vital part of the human resource development. It is assuming ever important role in wake of the advancement of technology which has resulted in ever increasing competition, rise in customer’s expectation of quality and service and a subsequent need to lower costs. It is also become more important globally in order to prepare workers for new jobs. In the current write up, we will focus more on the emerging need of training and development, its implications upon individuals and the employers. Noted management author Peter Drucker said that the fastest growing industry would be training and development as a result of replacement of industrial workers with knowledge workers. In United States, for example, according to one estimate technology is de-skilling 75 % of the population. This is true for the developing nations and for those who are on the threshold of development. In Japan for example, with increasing number of women joining traditionally male jobs, training is required not only to impart necessary job skills but also for preparing them for the physically demanding jobs. They are trained in everything from sexual harassment policies to the necessary job skills. The Four Important Aspects -

Education: The act or the experience which forms the knowledge base that underpins

any other activities that the individual may engage in at a later stage. The effect of education is on the mind, character as well as physical activity. This is the reason why there are minimum qualification requirements for jobs, and interviewers are also interested in extracurricular activities that the candidate has pursued.

Learning: It is the relatively permanent change in behaviour that occurs as a result of practice or experience. The permanent change in behaviour may be due to acquisition of new or modification of existing knowledge, behaviors, skills, values, or preferences.

Development: Skills and abilities get enhanced through growth of individuals, and this results in education and learning, this may take place either through conscious and unconscious learning. Whereas, development involves coaching , mentoring and other related aspects.

Training: Has a narrower focus than education and learning. It tends to concentrate on skill development. After training, one is clear about what people are to accomplish once it is over.

The Training Process & System `s Approach to Training Design A. Aligning Strategy and Training – Training refers to the methods used to give new or

present employees the skills they need to perform their jobs. Training today plays a key role in the performance management process, which is a key process for employers to ensure employees are working toward organizational goals. Overall, training has a fairly impressive record of influencing organizational effectiveness, scoring higher than appraisal and feedback, and just below goal setting in its effect on productivity.

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B. The Four-Step Training and Development Process – 1) needs analysis; 2) Instructional design; 3) Implementation; and 4) Evaluation. C. Training, Learning, and Motivation

1. Make Learning Meaningful – Material that is meaningful is usually easier for trainees to understand and remember.

2. Make Skills Transfer Easy – Make skills and behaviors easy to transfer from the

training site to the job site. 3. Motivation Principles for Trainers – Provide as much realistic practice as possible;

reinforce correct responses immediately; let trainees pace themselves; create a perceived training need in the trainees’ minds; and schedule effectively.

D. Analyzing Training Needs and Designing the Program – Two main ways to identify training needs are: task analysis (an analysis of the job’s requirements) and performance analysis (an analysis to verify if there is a performance deficiency).

E. Task Analysis: Assessing New Employees’ Training Needs – A task analysis can be use

to determine the training needs of new employees. A task analysis record form can also be used. It contains the following information: task list; when and how often performed; quantity, quality performance standards; conditions under which performed; skills or knowledge required; and where best learned.

F. Performance Analysis: Assessing Current Employees’ Training Needs – There are

several methods that can be used to identify an employee’s training needs, including: supervisor, peer, self, and 360-degree performance reviews; job-related performance data; observation by supervisors or other specialists; interviews with the employee or his/her supervisor; tests of things like job knowledge, skills, and attendance; attitude surveys; individual employee daily diaries; and assessment centers.

G. Competency Models – Many companies develop generic competency models for jobs by

conducting behavioral interviews with top performers to identify those competencies that should be developed in others to ensure job success.

H. Designing the Training Programs – Generally line managers should take the initiative in

training people and discussing it with HR. The steps involved in setting up the training program include setting training objectives, preparing the budget, finalizing the content and determining how the training should be imparted.

Types of Training Programs A. On-the-Job Training (OJT) – means having a person learn a job by actually doing it, and

involves the following: preparing the learner; presenting the operation; doing a tryout; and follow-up.

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B. Apprenticeship Training – is a structured process by which people become skilled workers through a combination of classroom instruction and on-the-job training.

C. Informal Learning – involves learning through day-to-day unplanned interactions between the new worker and his/her colleagues.

D. Job Instruction Training – refers to teaching a new employee the logical sequence of steps in a job step by step.

E. Lectures – quick and simple way to provide knowledge to large groups. F. Programmed Learning – is a step-by-step self-learning method: 1) presenting questions,

facts, or problems to the learner; 2) allowing the person to respond; and 3) providing feedback on the accuracy of the answers.

G. Audiovisual-Based Training – Tools include: films, PowerPoint presentations, video conferencing, audiotapes, and videotapes.

H. Simulated Training – is a method of training to replace or amplify real-world experiences. The purpose of this type of training is to evoke or replicate substantial aspects of a real-world application in a fully interactive fashion.

I. Vestibule Training – is a method in which trainees learn on the actual or simulated equipment they will use on the job, but are trained off the job.

J. Teletraining – where a trainer in a central location teaches groups of employees at remote locations via television hookups.Videoconferencing – allows people in one location to communicate live via a combination of audio and visual equipment with people in different locations – another city or country or with groups in several cities.

K. Electronic Performance Support Systems (EPSS) – are sets of computerized tools and displays that effectively automate and integrate training, documentation, and phone support, thus enabling individuals to provide support that’s faster, cheaper, and more effective than the traditional methods.

L. Computer-Based Training – is where the trainee uses computer-based and/or DVD systems to increase his/her knowledge or skills. CBT programs have real advantages including reducing learning time, cost effectiveness once designed and produced, instructional consistency, mastery of learning, increased retention, and increased trainee motivation.

M. Simulated Learning – is a variety of different activities including but not limited to virtual reality-type games, step-by-step animated guides, role playing and software training.

N. Internet-Based Training – Distance learning methods include traditional paper-and-pencil correspondence courses, as well as teletraining, videoconferencing, and Internet-based classes.

O. Improving Productivity Through HRIS – through special software packages that support Internet training by helping employees identify training needs.

P. The Virtual Classroom – uses special collaboration software to enable multiple remote learners to use their PCs or laptops to participate in live discussions.

Q. Using Internet-Based Learning – Considerations to improve e-based learning include allowing trainees to control the pace. The trend is toward blended learning (both virtual and in-person)

Instant Messaging – Can be used to supplement training. R. Lifelong and Literacy Training Techniques – Companies are responding to functional

illiteracy by testing job candidates’ basic skills, and setting up basic skills and literacy programs.

S. Voice and Accent Training in BPOs in India – To deal with international clients, Indian voice BPOs train their employees in the language, vocabulary, and accent of the host country of the BPO’s client.

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Implementing Management Development Programs Management Development is any attempt to improve managerial performance by imparting knowledge, changing attitudes, or increasing skills. The general management development process consists of (1) assessing the company’s strategic needs, (2) appraising the managers’ current performance, and (3) developing the managers. Succession planning is part of this process, and is the process through which a company plans for and fills senior-level openings.

A. Managerial On-The-Job Training methods include: job rotation; coaching/ understudy approach; and action learning.

1. Job Rotation – moving management trainees from department to department to broaden their understanding of all parts of the business.

2. Coaching/Understudy Approach – where a trainee works directly with a senior manager or with the person he/she is to replace, and the latter is responsible for coaching the trainee.

3. Action Learning – programs give managers and others released time to work full time on projects to analyze and solve problems in departments other than their own.

B. Off-the-Job Management Training and Development Techniques

1. The Case Study Method – presents a trainee with a written description of an organizational problem.

2. Management Games – computerized management games allow for the trainees to be

involved. 3. Outside Seminars – offered by many companies and universities. 4. University-Related Programs provide executive education and continuing education

programs in leadership, supervision, and the like. 5. Role Playing is aimed at creating a realistic situation and then having the trainee

assume the parts (roles) of specific persons in that situation. 6. Behavior Modeling involves showing the trainee the correct way to do something,

letting the trainee practice the correct way, and giving the trainee feedback on his/her performance. Behavior modeling is one of the most widely-used interventions, both for teaching supervisory-type skills and particularly for behavioral computer skills training.

7. Corporate Universities – In-house development centers have been established by

many companies to expose prospective managers to realistic exercises to develop improved management skills.

8. Executive Coaches are being used by firms to improve their top managers’

effectiveness. An executive coach is an outside consultant who questions the executive’s boss, peers, subordinates, and sometimes, family, in order to identify strengths and weaknesses, and to counsel the executive so he or she can capitalize on those strengths and overcome the weaknesses

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IV. Evaluating the Training Effort A. Designing the Study – The evaluation process of choice is controlled experimentation,

which uses both a training group and a control group (one that receives no training) to assess before and after performance to determine the extent to which performance in the training group resulted from the training itself rather than some organization-wide change. In practice, few firms use this method, preferring to simply measure trainees’ reactions, or to measure trainee job performance before and after the training.

B. Training Effects to Measure – Four basic categories of training outcomes can

be measured: 1) reaction; 2) learning; 3) behavior, and 4) results.

Learning Organization A learning organization is one which creates, acquires, interprets, transfers retains knowledge and acts by purposely modifying its behaviour to respond to the new knowledge and insights. They are built on 3 pillars- • Learning processes: Without the proper processes in place, building a learning

organization can only stay a dream. Processes have to be built for experimentation, sharing knowledge, best practices, transferring it and learning from past experience.

• Learning environment: An environment/climate which supports and encourages learning, tolerates errors and offers the psychological safety of admitting mistakes, asking uncomfortable questions or even flooring crazy ideas.

• Leadership that fosters and inspires learning environment: Leadership which does not hesitate to ask questions, show curiosity, admit when things go wrong and acknowledge uncertainty.

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CHAPTER 8

TALENT MANAGEMENT & COMPETENCY MAPPING

Talent Management is a set of integrated organizational HR processes designed to attract, develop, motivate, and retain productive, engaged employees. The goal of talent management is to create a high-performance, sustainable organization that meets its strategic and operational goals and objectives. The word “Talent Management” was coined by David Watkins of Softscape in the year 1998. Talent Management is a holistic approach to optimizing human capital, which enables an organization to drive short/long term results by building

Culture Engagement Capability

Through Talent Acquisition, development and deployment processes that are aligned to business goals. Objectives of Talent Management Talent attraction

Attracting the right people to your business relies on being perceived as an employer of choice – especially at the executive level. The top talent is always in high demand, irrespective of economic conditions. In a tricky climate or difficult operating conditions, the requirement for new hires is to make an immediate difference – whether that is to the bottom line, transformation agenda or business strategy.

Talent engagement

Also known as Employee Engagement.Employee engagement is based on trust, integrity, two way commitment and communication between an organization and its members. It is an approach that increases the chances of business success, contributing to organizational and individual performance, productivity and well-being. It can be measured. It varies from poor to great. It can be nurtured and dramatically increased; it can lose and can be thrown away.

Talent development Talent development is the process of changing an organization, its employees, its

stakeholders, and groups of people within it, using planned and unplanned learning, in order to achieve and maintain a competitive advantage for the organization.

Talent retention

Talent retention refers to the ability of an organization to retain its employees. Employee retention can be represented by a simple statistic (for example, a retention rate of 80% usually indicates that an organization kept 80% of its employees in a given period). However, many consider employee retention as relating to the efforts by which employers

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attempt to retain employees in their workforce. In this sense, retention becomes the strategies rather than the outcome.

Talent Flow Talent Flow is employing people at the right time, in the right numbers, with the right mix of skillswith the right mix of competenciesunder the right terms of employment. Talent Pool A talent pool is a group of individuals that is generally identified as the top talent within an organization. In order to prevent attrition and provide motivation, individuals that have met certain criteria for success are placed in a pool based upon their

Role Job code Position

Talent pools provide flexibility in the selection process for a leadership team. Creating a talent pool rather than choosing one employee with key competencies is more effective and efficient for an organization. Understanding Competency Competencies are generic knowledge, motive, trait, social role or skill of a person linked to superior performance in a job. Competencies are an underlying characteristics of a person which results in effective or/and superior performance on the job.Competencies only include behaviors that demonstrate excellent performance.Therefore they do not include knowledge but “applied knowledge” or behavioral application of knowledge that produces success.Competencies do include skills but only the manifestation of skills. Finally, competencies are not motives but include observable behavior related to motives. Competency Mapping It is the process of identification of the competencies required to perform successfully a given job or a role or a set of tasks at a given point time. It is consists of breaking a given role or job into its constituent tasks or activities and identifying the competencies (technical, managerial, behavioral, conceptual) in order to perform the job successfully. Methods of Competency Mapping

Questionnaires Job Descriptions Appraisal Formats KRAs Behavioral Event Interview Group tasks Assessment Centers Role Plays In Tray Exercises

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Types of Competency A functional competency is the key knowledge and skill needed by a job holder for the effective performance of the job. They are necessary but not sufficient for outstanding performance of a job. A behavioural competency is an underlying, key characteristic needed for outstanding job performance, which leads to and predicts high performance. It describes how the job holder does a particular job. Both functional and behavioural competencies are observable and measurable. Functional requirements are the "technical" needs, the things that are specific to that job or profession. For example, a functional competency for a Retail Manager might be knowledge of inventory distribution systems, while a functional competency for a Restaurant Manager might be knowledge of local food safety and handling regulations. The behavioral requirements may be called the "soft skills" that make a person successful in their role. Behavioral requirements are more universal, and similar behavioral requirements can be found in many different types of jobs. There can also be unique and specific behavioral needs in similar jobs. Let’s look at the Retail Manager and the Restaurant Manager again. A behavioral requirement for both jobs might be organization skills. Both managers handle staff scheduling and maintain sales records. They both have a need for high-level customer service skills and problem-solving abilities. One behavioral distinction is the Restaurant Manager’s greater need for a sense of urgency or immediacy -- food service is usually faster paced than merchandise display.

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CHAPTER 9

COMPENSATION AND BENEFITS Compensation is a tool used by management for a variety of purposes to further the existence of the company. Compensation may be adjusted according the the business needs, goals, and available resources. Compensation may be used to:

recruit and retain qualified employees. increase or maintain morale/satisfaction. reward and encourage peak performance. achieve internal and external equity. reduce turnover and encourage company loyalty. modify (through negotiations) practices of unions.

Recruitment and retention of qualified employees is a common goal shared by many employers. To some extent, the availability and cost of qualified applicants for open positions is determined by market factors beyond the control of the employer. While an employer may set compensation levels for new hires and advertize those salary ranges, it does so in the context of other employers seeking to hire from the same applicant pool. Morale and job satisfaction are affected by compensation. Often there is a balance (equity) that must be reached between the monetary value the employer is willing to pay and the sentiments of worth felt be the employee. In an attempt to save money, employers may opt to freeze salaries or salary levels at the expence of satisfaction and morale. Conversely, an employer wishing to reduce employee turnover may seek to increase salaries and salary levels. Compensation may also be used as a reward for exceptional job performance. Examples of such plans include: bonuses, commissions, stock, profit sharing, gain sharing. Compensation (also known as Total Rewards) can be defined as all of the rewards earned by employees in return for their labour. This includes:

Direct financial compensation consisting of pay received in the form of wages, salaries, bonuses and commissions provided at regular and consistent intervals

Indirect financial compensation including all financial rewards that are not included in direct compensation and understood to form part of the social contract between the employer and employee such as benefits, leaves, retirement plans, education, and employee services

Non-financial compensation referring to topics such as career development and advancement opportunities, opportunities for recognition, as well as work environment and conditions

Objectives of Compensation: 1. The compensation should be paid to each employee on the basis of their abilities and training. 2. Compensation should be in the form of package. 3. It should motivate the employees towards increasing productivity. 4. It should be capable of taking care of employees for safety and security needs also.

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5. It should be flexible and clear. 6. It should not be excessive. 7. Compensation should be decided by the management as per the norms fixed by the legislations in consultation with the union. A number of factors influence the remuneration payable to employees. They can be categorised into (i) external and (ii) internal factors. Internal Factors These factors include the following: Ability to pay This is one of the most significant factor influencing employee compensation. Generally, a firm, which is prosperous and successful, has the ability to pay more than the competitive rate. This way it can attract a superior caliber of personnel. Often the labour unions also demand an increase in compensation on the grounds that the organisation is prosperous and is able to pay more. Employee Numerous employees related factors also influence his or her compensation. These include the following: Performance—It is always rewarded wirh pay increase and as a result it motivates the

workers to do better in future. Experience—This makes a person perfect by providing valuable insights and thus

rewarded also. Today companies are demanding for 10 to 20 years experience candidates especially for the executive positions. The companies presume that experience candidate posses leadership skills which influence the other behavior and performance. Generally experience candidate perform the job without need of training which is time consuming and deals with matter of cost to company. Hence the experience candidates demand more pay than an unexperienced candidate.

Seniority—In today's environment seniority of employee making difference in payment of compensation compared to Jr employees. Naturally senior employees demands for more salary than fresher because of their hold on related job and its functions. Today many companies are demanding senior employees for key positions by offering fat pay and even sometimes retired employees are offered with handsome salary for key positions which deals with multitasking in organisation. Trade unions always prefer this objective criterion for pay rises.

Potential—Firms also pay their employees, especially young ones on the basis of their potential. software companies are very good example for this, IT graduate just who completed his education having potential in the subject can gain a good job with high payment anywhere in the world. Good example, student of Indian Information Technology (IIT) from Delhi had bagged job of payment 7 million (70 lakhs) Indian rupees per year in Twitter Inc famous social networking website

Job requirements Wages are also influenced by the requirements of a job such as physical and mental requirement. Jobs, which demand more skill, responsibility, efforts and are of hazardous in nature, will carry high wage tag with them.

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Job evaluation Job evaluation establishes a consistent and systematic relationship among base compensation rates for all jobs. In other words, it establishes the satisfactory wage differentials. Organisation's strategy The organisation's strategy regarding wages also influences employee compensation. For example, an organisation, which wants rapid growth, will set higher wages than competitors. On the other hand, organisations that want smooth going and just maintain the current earning will pay average or below average. External Factors Labor market Official laws on wage and salary, labor contract, payment time, wage payment delay,

working insurance, and so on. People’s standard of living in the areas where the offices of the company are. People’s living and consuming customary. The average wage rate in the labor market of similar work. Economy The state of economy also influences the wage and salary-fixation. Wage rates will be different in a stable economy than in a depressed economy. In case of depressed economy there may be increase in supply of labour and this results in the fixation of lower wage rates. Inflation Increase in the prices of commodities and decrease in value of the money is called as inflation. The causes of inflation are many which are raising costs, fall in the currency value in international markets, raising taxes by government and stagnation in the development of economy, etc. Example Reliance Industries Ltd had paid nearly13% increase in salaries to its employees compared to last year salaries and HDFC (Housing Development Finance Corporation) Bank had paid nearly 21% increase in salaries to its employees compared to last year salaries. Technological changes Technological changes also influence the fixation of wage levels. Due to the advancements in the technology there may be shortage of skilled manpower in that area. So, the organisation will provide high wages for skilled personnel. For example, information technology (IT) industry in India and abroad is suffering from the shortage of IT experts. Academic Institutions Having good academic qualifications from Reputed and standard educational institution influence the compensation of the potential candidate in their recruitment in companies. Example, Indian Top Business schools like Indian Institute of Management, and IIT (Indian Institute of Technology) graduates demands higher pay packages compared to other normal institutions. Candidates seeking admission into theses institution requires to qualify tests conducted on domain knowledge. Candidates those who admit in these institution are determined, having competence and good domain knowledge which companies require.

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Job Evaluation An assessment of the relative worth of various jobs on the basis of a consistent set of job and personal factors, such as qualifications and skillsrequired. The objective of job evaluation is to determine which jobs should get more pay than others. Several methods such as job ranking, job grading, and factor comparison are employed in job evaluation. Research indicates, however, that each method is nearly as accurate and reliable as the other in ranking and pricing different jobs. Job evaluation forms the basis for wage and salarynegotiations. Techniques of Job Evaluation 1. Job Ranking

Perhaps the easiest method of job evaluation is the job ranking method. This method involves putting all jobs in an organization in rank order of importance based upon their contributions towards the achievement of an organization's goals. The Evaluative Manager may perform the ranking herself after performing a job analysis of each position or bring in subject matter experts more familiar with the jobs. For example, a marketing analyst will receive a higher ranking than a janitor.

2. Job Classification In this method, a series of classes and grades are defined. Each class will describe a group of jobs. Each grade in a class will represent different levels of difficulty and responsibility. The Evaluative Manager will sort the jobs into each class by matching up the job descriptions for each job with the class and grade descriptions and assigning the job to the class that's the best match. Let's look at an example. Let's say that Mrs. Joy wants to develop a class for administrative workers. Within this class she may have three different grades, or levels, based upon the nature of the work and the level of responsibility. She calls them A-1, A-2 and A-3: A-1 performs clerical work under close supervision. The job typically requires a high

school diploma and a general knowledge of office procedures, equipment, etiquette and the ability to follow instructions. There are no supervisory responsibilities.

A-2 performs clerical work with no supervision and may be assigned simple special projects. The job typically requires an associate level or vocational degree and requires the same knowledge as an A-1 as well as intermediate knowledge of word processing and spreadsheets.

A-3 may perform the duties of A-1 and A-2 but independent of any supervision. A-3 personnel may also engage in special projects without supervision, provide personal administrative assistance to management level personnel and may have supervisory responsibilities over A-1 and A-2 personnel.

Mrs. Joy may place the executive assistant to the company's president in the A-3 grade, while a mail clerk would be placed in grade A-1. Of course, Mr. Joy may develop classes and grades of other types of job categories such as research, management and marketing. 3. Point Rating: This is the most widely used method of job evaluation. Under this method, jobs are broke down based on various identifiable factors such as skill, effort, training, knowledge, hazards, responsibility, etc. Thereafter, points are allocated to each of these factors. Weights are given to factors depending on their importance to perform the job. Points so allocated to various factors of a job are then summed. Then, the jobs with similar total of

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points are placed in similar pay grades. The sum of points gives an index of the relative significance of the jobs that are rated. The procedure involved in determining job points is as follows: Determine the jobs to be evaluated. Jobs should cover all the major occupational and levels of responsibility to be covered by the method. Decide on the factors to be used in analysing and evaluating the jobs. The number of factors needs to be restricted because too many factors result in an over-complex scheme with overlap and duplication between factors. Define the factors clearly in written. This is necessary to ensure that different job raters interpret a particular factor in the same sense. Determine degrees of each factor and assign point value to each degree. Point values are assigned to different degrees on the basis of arithmetic progression. Finally, money values are assigned to points. For this purpose, points are added to give the total value of a job. Its value is then translated into money terms with a predetermined formula. Employee Benefits& Services Employers can offer a wide variety of benefits to their employees. Benefits are designed to help employees meet basic needs they might not otherwise be able to meet on their own. For instance, the high cost of health insurance is often offset by employer contributions to the employee's premium. Employee services are employee benefits, but they are a more specific form of employee benefit that employers offer to help instill loyalty among their workers. Small business owners must decide which benefits and services to offer employees. With limited resources, some can offset expensive benefits with less expensive employee services Services Employee services can include anything an employer deems necessary to provide as a perk for employees. No real limit exists as to what can be included as an employee service. Some companies provide cafeterias and event catering services for employees. Others have coffee shops. Employee services are more of a convenience than a true benefit. Busy corporate offices, for example, might provide dry cleaning pickup services for employees. Employers in remote locations might offer shuttle services to and from work. The types of services depends upon each employer. Small business owners can use employee services such as on-site childcare to make their positions more attractive to potential employees. Benefits Employee benefits differ from employee services in that benefits tend to be necessities for many people. Basic insurance needs are covered by many employee benefit plans. Insurance options provided by employers can include health insurance, but they can also include life insurance, accidental death and disability insurance, dental insurance and unemployment insurance also. Other types of benefits usually include a retirement plan in the form of a 401(k) or some other qualified tax-deferred plan. Although employee services might be considered a benefit, they are usually optional and not necessarily what job seekers first look for when conducting a job hunt.

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Importance of Employee Benefits and Services Benefits and services for employees play important roles in the culture of a company. For employees, these provisions can create a sense of loyalty to the employer and indicate the employer cares for their well-being. Employee benefits, such as health insurance and retirement plans, also provide employers with tax advantages. Employees also benefit in this manner with tax-deferred retirement plans. A carefully implemented benefits plan that also includes some basic employee services can go far toward creating a positive business culture. Incentives and Profit Sharing Incentives Incentive plans are used to motivate employees to increase production. According to the business resource Business Town, employees given an incentive plan tend to feel more attached to the company's success and may work harder to help achieve it. Incentives can come in many forms. The types of incentives plans are as follows- Employee Stock Options Plans A stock option is an incentive offered to employees that want to invest their money into the company stock by purchasing stock with pre-tax money. According to HR Guide, employees that participate in a stock option incentive plan are able to defer paying income tax on the gains realized by their stock purchases until the stock is sold. The company itself does not get any kind of tax break by offering a stock option incentive, but it does reap the benefits of selling more stock. Profit Sharing According to Business Town, profit sharing is another incentive plan done with pre-tax dollars. The company sets aside a portion of their pre-tax profits and distributes that money to the employees. In most cases, an employee must qualify to receive profit sharing by meeting company performance metrics, and by having a predetermined amount of service in with the company. Some companies offer to place the pre-tax dollars into the employees' company retirement plans, so it can add to future fund growth. Companies may also develop a profit sharing percentage based on the amount of time worked for the company, the position held within the company or a combination of both conditions. Bonus Pay The bonus pay structure is common in professions such as sales, marketing and production. When the employees reach a predetermined goal, the company may create an incentive plan that pays a bonus for going beyond that goal. For example, if a manufacturing plant has a goal of 100 units in a month, the company may offer to pay each employee a bonus for each unit manufactured beyond 100 in that month.

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CHAPTER 10

PERFORMANCE MANAGEMENT SYSTEM

I. Basic Concepts in Performance Management and Appraisal A. Comparing Performance Appraisal and Performance Management –

Performance appraisal is part of a total integrated process of performance management, which consolidates goal setting, performance appraisal, and development into a single, common system, the aim of which is to ensure that the employee's performance is supporting the company's strategic aims.

B. Defining the Employee's Goals and Work Standards – At the heart of performance

management is the idea that employees’ effort should be goal directed, which involves clarifying expectations and quantifying them by setting measurable standards for each objective. Some guidelines for effective goal setting are: 1. assign specific goals; 2. assign measurable goals; 3. assign challenging but doable goals; and 4. encourage participation.

II. Techniques for Appraising Performance

Why Appraise Performance – For several reasons: 1) they play an integral role in the employer's performance management process; 2) the appraisal lets the boss and subordinate develop a plan for correcting any deficiencies, and reinforce those things he does correctly; 3) they serve a useful career planning purpose; and 4) it plays a part in salary decisions.

Realistic Appraisals – It is important that a manager be candid when a subordinate is underperforming.

The Supervisor's Role – Supervisors must be familiar with basic appraisal techniques,

understand and avoid problems that can cripple appraisals, and know how to conduct appraisals fairly. The HR Department serves in a policy-making and advisory role.

Steps in Appraising Performance – 1) define the job; 2) appraise performance; and 3)

provide feedback. III Methods of Performance Appraisal

Graphic Rating Scale Method – is the simplest and most popular performance appraisal technique. A scale is used to list a number of traits and a range of performance for each, then the employee is rated by identifying the score that best describes his/her performance level for each trait. Managers must decide which job performance aspects to measure. Some options include generic dimensions, actual job duties, or behaviorally recognizable competencies.

Alternation Ranking Method– is where employees are ranked from best to worst on a particular trait, choosing highest, then lowest, until all are ranked.

Paired Comparison Method– involves ranking employees by making a chart of all possible pairs of employees for each trait and indicating which the better employee of the pair is.

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Forced Choice Method– is where predetermined percentages of rates are placed in

various performance categories; similar to grading on a curve. Critical Incident Method– is where a supervisor keeps a record of uncommonly

good and/or undesirable examples of an employee’s work-related behavior, and reviews it with the employee at predetermined times.

Narrative Forms– involve rating the employee’s performance for each performance factor, writing down examples and an improvement plan, aiding the employee in understanding where his/her performance was good or bad, and summarizing by focusing on problem solving.

Behaviorally Anchored Rating Scales (BARS)– combines the benefits of narratives, critical incidents, and quantified scales, by anchoring a scale with specific behavioral examples of good or poor performance. The five steps in developing a BARS are: 1) generate critical incidents; 2) develop performance dimensions; 3) reallocate incidents; 4) scale the incidents; and 5) develop final instrument. The advantages of BARS include a more accurate gauge; clearer standards; feedback; independent dimensions; and consistency.

Behavior Observation Scale (BOS) A performance appraisal that measures the frequency of observed behavior

Preferred over BARS for maintaining objectivity, distinguishing good performers from poor performers, providing feedback, and identifying training needs.

Management by Objectives (MBO) – requires the manager to set specific measurable goals with each employee and then periodically discuss his/her progress toward these goals. The process consists of six steps: 1) set the organization's goals; 2) set departmental goals; 3) discuss departmental goals; 4) define expected results; 5) performance reviews; and 6) provide feedback.

IV Dealing with Performance Appraisal Problems It can be difficult to rate performance for several reasons. Much depends on a good rating, including career progress, or being able to obtain a raise. There are also technical problems that can affect the fairness of the process. A. Potential Appraisal Problems – unclear standards; halo effect; central tendency; leniency or strictness; and bias. 1. Unclear Standards – Ambiguous traits and degrees of merit can result in an unfair

appraisal. 2. Halo Effect – the influence of a rater’s general impression on ratings of specific

qualities can be a problem. 3. Central Tendency – where supervisors stick to the middle of the rating scales, thus

rating everyone average. 4. Leniency or Strictness – supervisors have the tendency to rate everyone either high or

low. 5. Bias – the tendency to allow individual differences such as age, race, and sex to affect

the appraisal ratings employees receive, is a problem. 6. Research Insight – Bias can influence the way a person appraises another person. In

one study, for example, the identical employee was rated differently if pregnant.

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B. Five Guidelines for How to Hold Effective Appraisals – Appraisal problems can be more effective by following these five things:

a) know the problem; b) use the right appraisal tool; c) keep a diary; d) get agreement on a plan; e) be fair.

Who Should Do the Appraising?

1. The Immediate Supervisor – is usually in the best position to observe and evaluate the subordinate’s performance, and is responsible for that person’s performance.

2. Peer Appraisals – becoming more popular with firms using self-managing teams. 3. Rating Committees – consist of multiple raters, typically the employee’s

immediate supervisor and three or four other supervisors. 4. Self-Ratings – tend to be higher than supervisor or peer ratings. 5. Appraisal by Subordinates – or upward feedback, is where subordinates

anonymously rate their supervisor’s performance.

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CHAPTER 11

CAREER MANAGEMENT Understanding Careers Career A Career is the individually perceived sequence of attitudes and behaviors associated with work-related experiences and activities over the span of the person's life. External career includes the formal levels of hierarchy (as per the organization structure)

and roles set by the policies of the organization. Internal career involves a subjective sense of where one is going in one's working life. Career Path It is aflexible line of movement through which an employee may move during his stint within an organization.A career path is the sequential pattern of jobs a person moves from one company to another or a progressive move within a company. Career Planning Career planning is an attempt by an employee to become more aware of their skills, values, interests, choices and opportunities. Career management It is considered to be an organizational process that involves preparing, implementing and monitoring career plans, undertaken by an individual alone within the organizations career system.

Models of Career Management The Kaleidoscope Career Model (K.C.M.)

Like a kaleidoscope that produces changing patterns when the tube is rotated and its glass chips fall into new arrangements, employees shift the pattern of their careers by rotating different aspects of their lives to arrange roles and relationships in new ways (Mainiero& Sullivan, 2005). These three parameters (i.e. authenticity, balance, and challenge) of the K.C.M. shifts over the course of an individual’s life span to create different career patterns. These three parameters are: Authenticity This means being true to oneself in the midst of the constant interplay between

personal development, and work and non-work issues. Eg : It Includes paid holidays to pursue community service, focus on health, free

hours for pursue interests like tennis, golf, chess etc. Balance This means making decisions so that the different aspects of one’s life, both work and

non-work, form a coherent whole. Eg : It Includes work from home, part time workers. Challenge Engaging in activities that permit the individual to demonstrate responsibility, control

and autonomy while learning and growing. Eg : It Includes job rotation, international assignments, reward on challenging assignments.

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Donald Super`s Career Stages

1. Growth Stage – lasts roughly from birth to age 14 and is marked by the development of self-concept.

2. Exploration Stage – The period from age 15 to 24 when a person seriously explores various occupational alternatives.

3. Establishment Stage – roughly spans ages 24 to 44 and is the heart of most people’s work lives. It has three substages: a. Trial Substage – is a time during which a person determines if their chosen field is

suitable. b. Stabilization Substage – is characterized by setting firm occupational goals, and

planning to determine the sequence of promotions, job changes, and educational activities necessary to accomplish the goals.

c. Mid-Career Crisis Substage – is reached sometime between the mid-thirties and mid-forties. Here, people make a major reassessment of their progress toward their ambitions.

4. Maintenance Stage – Between the ages of 45 and 65 this stage is directed at maintaining the person’s place in the world of work.

5. Decline Stage – characterized by the prospect of having to accept reduced levels of power and responsibility in preparation for retirement.

Holland`s RIASEC Model

In the modern form, trait and factor theory stresses the interpersonal nature of careers and associated lifestyles as well as the performance requirements of a work position. Holland (1970) identified six categories in which personality types and occupational environments can be classified as explained in the diagram below

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CHAPTER 12

ETHICS, JUSTICE, AND FAIR TREATMENT IN HR MANAGEMENT I. Ethics and Fair Treatment at Work

A. The Meaning of Ethics – Ethics refers to “the principles of conduct governing an individual or a group.” Ethical decisions also involve morality, which are society’s accepted standards of behavior. It would simplify things if it was always clear which decisions were ethical and which were not. Unfortunately, it is not.

B. Ethics and the Law – The law is not the best guide about what is ethical, because

something may be legal but not right, and something may be right but not legal. “Don’t lie, don’t cheat, don’t steal.” We were all raised with essentially the same values. Ethics means making decisions that represent what you stand for, not just what is legal.

C. Employee Rights – Few societies rely solely on managers’ ethics or sense of fairness

to ensure that they do what’s right by their employees. An employee may have the right to sue the employer under a number of different circumstances.

II. What Determines Ethical Behavior at Work?

A. Research Findings – Whether a person acts ethically at work is usually not a consequence of any one thing. Because people bring to their jobs their own ideas of what is morally right and wrong, the individual must shoulder much of the credit (or blame) for the ethical choices he or she makes.

B. The Person – Because people bring to their jobs their own ideas of what is morally

right and wrong, the individual must shoulder much of the credit (or blame) for the ethical choices he or she makes.

C. The Boss – The boss sets the tone, and by his or her actions sends signals about what

is right or wrong. According to one report, for instance, “the level of misconduct at work dropped dramatically when employees said their supervisors exhibited ethical behavior.”

D. Organization’s Culture

1. What is Organizational Culture? – Organizational culture is the characteristic values,

traditions, and behaviors a company’s employees share. A value is a basic belief about what is right or wrong, or about what you should or shouldn’t do. To an outside observer, a company’s culture reveals itself in several ways. You can see it in employees’ patterns of behavior, such as ceremonial events and written and spoken commands. You can also see it in the physical manifestations of a company’s behavior, such as written rules, office layout, organizational structure, and dress codes.

2. The Manager’s Role – When it comes to creating a corporate culture, effective managers

do not leave it to chance. Things that help are: Clarify Expectations, Walk the Talk, and Provide Physical Support.

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E. The Company – People tend to alter their ethical compasses when they join an organization. For example, managers may pressure or even reward employees for bad behavior.

III. How Managers use Personnel Methods to Promote Ethics and Fair

Treatment 1. Selection – Screening out undesirables can actually start before the applicant even

applies, if the HR department creates recruitment materials containing explicit references to the company’s emphasis on integrity and ethics. The selection process also sends signals about what the company’s values and culture really are, in terms of ethical and fair treatment.

2. Ethics Training – Ethics training typically plays a big role in helping employers nurture a culture of ethics and fair play. Such training usually includes showing employees how to recognize ethical dilemmas, how to use ethical frameworks to resolve problems, and how to use HR functions in ethical ways.

3. Performance Appraisal – The firm’s performance appraisal processes provide another opportunity to emphasize its commitment to ethics and fairness. First, the appraisal can actually measure employees’ adherence to high ethical standards.

4. Managing Ethics Compliance – Passage of the Sarbanes-Oxley Act of 2002 made ethics compliance obligatory. The act requires that the CEO and the CFO of publicly traded companies personally attest to the accuracy of their companies’ financial statements.

5. Personnel-Related Methods for Ensuring Fair Treatment – There are concrete reasons managers should treat employees fairly. Arbitrators and the courts will consider the fairness of the employer’s disciplinary procedures when reviewing disciplinary decisions.

IV. Managing Employee Discipline and Privacy A. Basics of a Fair and Just Disciplinary Process – The purpose of discipline is to encourage

employees to behave sensibly at work. In an organization, rules and regulations serve about the same purpose that laws do in society; discipline is called for when one of these rules or regulations is violated. A fair and just discipline process is based on three pillars: clear rules and regulations, a system of progressive penalties, and an appeals process.

B. Formal Disciplinary Appeals Processes – even companies without unions may have a

very formalized appeals process. Some companies establish independent ombudsmen, neutral counselors from outside the normal chain of command to whom employees can turn for confidential advice.

C. Discipline without Punishment – aims to avoid disciplinary problems. It does this by

gaining employees’ acceptance of the rules and by reducing the punitive nature of the discipline itself.

D. Employee Privacy – The four main types of employee privacy violations upheld by

courts are intrusion, publication of private matters, disclosure of medical records, and appropriation of an employee’s name or likeness for commercial purposes. Background checks, monitoring off-duty conduct and lifestyle, drug testing, workplace searches, and monitoring of workplace activities trigger most privacy violations.

E.Employee Monitoring – More than half of employers monitor email activity, three- quarters monitor employee Internet use, and about 40% monitor phone calls.

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V. Managing Dismissals Dismissal is the most drastic disciplinary step the manager can take. Because of this, special care is required to ensure that sufficient cause exists for it. Without a contract, either the employee or the employer could terminate at will the employment relationship. However, EEO and other laws and court rulings increasingly limit management’s right to dismiss employees. Wrongful discharge is a dismissal that violates the law or that fails to comply with contractual arrangements, either stated or implied. Statutory, common law, and public policy exceptions to termination at will exist.

A. Grounds for Dismissal – There are four bases for dismissal. In dismissing an

employee, the employer should take care to ensure that all keys and company property are returned, Internet passwords disabled, and employee accounts inactivated. 1. Unsatisfactory performance – occurs when there is persistent failure to perform

assigned duties or to meet prescribed job standards. 2. Misconduct – is a deliberate and willful violation of the employer’s rules.

Insubordination is a form of misconduct, referring to rebelliousness or disobedience.

3. Lack of qualifications for the job – results from an employee’s inability to do the work assigned even when he or she is diligent.

4. Changed requirements (or elimination) of the job – results from an employee’s inability to do the job after the employer changed the nature of the job.

B. Avoiding Wrongful Discharge Suits – Wrongful discharge occurs when an employee’s dismissal does not comply with the law or with the contractual arrangement. Avoiding wrongful discharge suits requires a two-pronged approach. First, set up employment policies and dispute resolution procedures that make employees feel they are treated fairly. Second, do the preparatory work – paying particular attention to the employee handbook to avoid such suits.

C. Personal Supervisory Liability – Courts sometimes hold managers personally liable

for their supervisory actions. Managers should be fully familiar with applicable federal, state, and local statutes and know how to uphold their requirements.

D. The Termination Interview – Guidelines include: 1) Plan the interview carefully, 2)

Get to the point, 3) Describe the situation, 4) Listen, 5) Review all elements of the severance package, 6) Identify the next step. 1. Outplacement Counseling – is a systematic process by which someone you’ve

terminated is trained and counseled in the techniques of conducting a self-appraisal and securing a new job appropriate to his or her needs and talents.

2. Exit Interview – Many employers conduct exit interviews with employees who are leaving the firm. They aim to elicit information about the job or related matters that might give the employer a better insight into what is right—or wrong—about the company.

E. Lockout, layoff, retrenchment/downsizing and closing in India – These are covered by

the Industrial Disputes Act. When the number of employees involved increases, then the government’s permission has to be taken. The Industrial Disputes Act is often termed as the reason behind the rigidity of Indian labor laws.

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1. The Plant Closing Law in the United States – requires employers of 100 or more employees to give 60 days’ notice before closing a facility or starting a layoff of 50 people or more. It simply gives employees time to seek other work or retraining by giving them advance notice of the shutdown.

2. The Layoff Process – There is a survivor mentality that exists among those who

remain where there have been layoffs. 3. Bumping/Layoff Procedures – Employers who encounter frequent business

slowdowns and layoffs may have procedures that let employees use their seniority to remain on the job.

4. Alternatives to Layoffs – Given the investments they have in recruiting,

screening, and training employees, many employers are hesitant to lay off people at the first sign of business decline. There are several alternatives.

F. Adjusting to Downsizings and Mergers

Firms often use downsizing—reducing, usually dramatically, the number of people the firm employs—to better their financial position. Yet many firms discover operating earnings don’t rise after major cuts. Low morale among those remaining may be part of the problem. Regardless of why you’re downsizing, think through the process, both to avoid unnecessary consequences and to ensure the process is fair. Some guidelines for implementing a reduction in force are provided.