HUMAN RESOURCE - himpub.comHUMAN RESOURCE MANAGEMENT (As per Revised Syllabus of Six Semester BBI,...

HUMAN RESOURCEMANAGEMENT

(As per Revised Syllabus of Six Semester BBI, Mumbai University, w.e.f. 2018-19)

Prof. Rajiv S. MishraM.Com., MBA (Finance), M.Phil., UGC NET

Assistant Professor at N.E.S. Ratnam College of Arts,Science and Commerce for BBI and M.Com.,

Bhandup (W), Mumbai - 400 078.Visiting Faculty at Nitin Godiwala College, Vikas College,

Menon College, N.G. Acharya College, and SMU.Ex. Visiting Faculty at K.J. Somaiya College of Arts, Science and Commerce,

R. Jhunjhunwala College, Vivekanand College and VPMfor BBI, BMS, BAF, BFM, M.Com. and MBA.

Dr. Rakhi BhattacharyaM.Com; PGDBM(HRM); SET; Ph.D. in Commerce,

Assistant Professor and Co-ordinator (M.Com. E.Com.),Thakur College of Science and Commerce,

Kandivali (east)

Dr. Shraddha Mayuresh BhomeM.Com., M.Phil. (Gold Medalist),

Professional MBA, Ph.D. in Commerce,Pursuing D.Litt. in Commerce.

Assistant Professor and Coordinator(Accounting and Finance),

Satish Pradhan Dnyansadhana College,Thane.

ISO 9001:2015 CERTIFIED

First Edition : 2012Second Edition : 2014Third Revised Edition : 2015Reprint : 2017Fourth Revised Edition : 2019(As per revised syllabus)

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PREFACE

It is a matter of great pleasure to present revised edition of the book on HumanResource Management to the students and teachers of BBI, University of Mumbai. Thisbook is written on lines of syllabus instituted by the University. The book presents thesubject matter in a simple and convincing language.

I owe a great many thanks to a great many people who helped and supported meduring the writing of this book which includes Principal, Co-coordinator and Studentsof K.M. College, DAV, Ratnam College, K.J. Somaiya, Vivekananda Education Society,Vikas College, R.J. College of the B.Com., BBI, BMS, BAF and BFM section.

My deepest thanks to Mr. Manoj Sharma of the Nitin Godiwala College who wasthe strength to me always.

I would also thank all of them who have being a part of this book and helped meknowingly or unknowingly. I also extend my heartfelt thanks to my family S.N. Mishra– Father, Sunita S. Mishra – Mother, Sanjiv S. Mishra – Brother, Rupa R. Mishra –Wife, Yash R. Mishra – Son and well-wishers would have been a distant reality.

Special Thanks/Acknowledgements

(1) Prof. Mrs. Rina Saha Principal – N.E.S. Ratnam College

(2) Prof. Ajay Bhamre Principal – RADAV College(3) Prof. Probol Gupta Vice-principal – RADAV College(4) Prof. R.K. Patra Sr. Vice-principal – Vikas College(5) Prof. Vinayak Mulay Vice-principal – RADAV College(6) Dr. Kinnary Thakkar Reader Commerce – Mumbai University(7) Prof. Riya Rupani BMS & BBI Co-ordinator – N.E.S. Ratnam College(8) Prof. Sandip Gupta BMS Co-ordinator – K.J. Somaiya College(9) Prof. Jyotsna Shilpi BMS Co-ordinator – Vikas College

(10) Prof. Selvi BMS Co-ordinator – R. Jhunjhunwala College(11) Prof. Mukesh Kanojia BMS Co-ordinator – R.D. National College(12) Prof. Bhavdas C.M. Sr. Lecturer – V.E.S. College(13) Prof. Nitin Agarwal Lecturer – Gurukul College(14) Prof. Kursheed Shaikh Lecturer – Narayan Guru College(15) Prof. Jia Makhija Lecturer – N.E.S. Ratnam College(16) Prof. Kedar Pandey Lecturer – Nitin Godiwala College

Authors

SYLLABUS

Modules at a Glance

Sl. No. Modules No. of Lectures

1 Framework of Human Resource Management 15

2 HR Procurement 103 HR Planning and Recruitment 10

4 Training and Development 155 Compensation 10

Total 60

Sl. No. Modules/Units

1. Framework of Human Resource Management

Introduction to HRM, Nature of HRM, Scope of HRM, Functions and Objectives ofHRM, HRM Policies and Practices, Role and Functions of HR Manager (in Bankingand Insurance Sector).HRM and Strategies – Strategic Function of HRM, Understanding and Implementing

Global Competitiveness and HR, Strategic HR, Linkages of Organizational and HR

Strategies.

2 HR Procurement

Job Analysis and Design-Job Analysis, Introduction, Importance, Purpose, Benefits,Job Evaluation, Competency-based Job Analysis.Job Design- Introduction, Characteristics, Factors Affecting Job Design, JobSatisfaction.

3 HR Planning and Recruitment

Definition, Objectives, Need and Importance of HR Planning, Preparing ManpowerInventory, Promotions and Transfers.

Recruitment – Strategic Approach to Recruitment, Recruitment Source: Internaland External and Selection Procedure.

4 Training and Development

Employee Training and Development – Nature and Process of Training, TrainingMethods – On-the-job and Off-the-job.Management Development Program and Performance Appraisal – Definition,

Methods, Advantages and Limitations of Appraisal.

5 Compensation

Meaning, Need and Importance, Current Trends in Compensation, Team-basedIncentives, Pension Schemes with Reference to Banking and Insurance, FringeBenefits, Perquisites, Allowances and other Non-monetary Benefits.

Voluntary Retirement Scheme – Concept, Types, Needs, Effects with Referenceto Banking and Insurance.

Participative ManagementMeaning, Levels, Types, Employee Welfare, Comparative Study of WorkingConditions in Banks, Financial Institutions and Insurance Companies.

PAPER PATTERN

Maximum Marks: 75Questions to be Set: 05

Duration: 2½ HoursAll questions are compulsory carrying 15 Marks each.

Question No. Particulars Marks

Q. 1 Objective Questions 15 Marks(A) Sub-questions to be asked (10) and to be answered (any 08)(B) Sub-questions to be asked (10) and to be answered (any 07)(*Multiple Choice/True or False/Match the Columns/Fill in the Blanks)

Q. 2 Full Length Question 15 MarksOR

Q. 2 Full Length Question 15 Marks

Q. 3 Full Length Question 15 MarksOR

Q. 3 Full Length Question 15 MarksQ. 4 Full Length Question 15 Marks

ORQ. 4 Full Length Question 15 MarksQ. 5 (A) Theory Questions 08 Marks

(B) Theory Questions 07 MarksORShort Notes 15 MarksTo be asked (05)To be answered (03)

Note: Theory questions of 15 Marks may be divided into two sub-questions of 7/8 and 5/10 Marks.

CONTENTS

Unit 11. Human Resource Management 1 – 20

Unit 22. Job Analysis, Job Design and Job Evaluation 21 – 37

Unit 33. Human Resource Planning 38 – 43

4. Transfers and Promotions 44 – 53

5. Recruitment and Selection 54 – 65

Unit 46. Training and Development 66 – 79

7. Performance Appraisal 80 – 94

Unit 5

8. Compensation Management 95 – 112

9. Participative Management 113 – 119

Questions 120 – 123

Case Studies 124 – 141

HUMAN RESOURCEMANAGEMENT

CHAPTER

1

1. INTRODUCTION TO HUMAN RESOURCE MANAGEMENT

Information Technology (IT) — A wonderful creation of man brought shifts in our day-to-daylife. Indian software professionals made significant strides in the information technology industry ofUSA.

The answer to this question centered around the following areas:

Getting the people who can make an organization.

Enabling those people to acquired capabilities to make a successful organization.

Motivating those people to contribute their resourses continuosly for running the organizationsuccessfully.

2. MEANING AND DEFINITION OF HRM

The total knowledge, skill, creative abilities, talents and aptitudes of an organization’s workforce,as well as the value, attitudes and beliefs of the individuals involved.

Definition of HRMThe field of management which has to do with planning, organizing, directing and controlling the

functions of procuring, developing, maintaining and utilizing a labour force so that the organizational,social and individual goals are met.

Unit I: Framework of Human Resource Management

2 HUMAN RESOURCE MANAGEMENT

3. SCOPE OF HUMAN RESOURCE MANAGEMENT

The scope of HRM is very wide:

1. Personnel Aspect: This is concerned with manpower planning, recruitment, selection,placement, transfer, promotion, training and development, layoff and retrenchment,remuneration, incentives, productivity, etc.

2. Welfare Aspect: It deals with working conditions and amenities such as canteens, creches,rest and lunch rooms, housing, transport, medical assistance, education, health and safety,recreation facilities, etc.

3. Industrial Relations Aspect: This covers union-management relations, joint consultation,collective bargaining, grievance and disciplinary procedures, settlement of disputes, etc.

4. Motivation: This deals with influencing employee to attain the desirable organization goaland leads to organization growth and development.

5. Communication: HRM involves upward, downward and horizontal communication whichleads to conduct of organizational activities in a very smooth manner.

4. HUMAN RESOURCE MANAGEMENT: OBJECTIVES

To help the organization reach its goals.

To ensure effective utilization and maximum development of human resources.

To ensure respect for human beings.

To identify and satisfy the needs of individuals.

To ensure reconciliation of individual goals with those of the organization.

To achieve and maintain high morale among employees.

To provide the organization with well-trained and well-motivated employees.

To increase to the fullest the employee’s job satisfaction and self-actualization.

To develop and maintain a quality of work life.

To be ethically and socially responsive to the needs of society.

To develop overall personality of each employee in its multidimensional aspect.

To enhance employee’s capabilities to perform the present job.

To equip the employees with precision and clarity in transaction of business.

To inculcate the sense of team spirit, teamwork and inter-team collaboration.

5. ROLE OF HUMAN RESOURCE MANAGEMENT IN INSURANCE

Services sectors like banks and insurance are entirely dependent on the knowledge, expertise,skills, attitudes and quality of human resources for growth and success. Hence, effective managementof human resources is extremely crucical in banks and insurance companies.

HUMAN RESOURCE MANAGEMENT 3

Human resource management in banking and insurance concentrates on building employeecapabilities. Employee capabilities serve as the trigger and create growth opportunities for the organization.As employee capabilities is the key link to success in banks and insurance companies, the HR departmentbecomes a “strategic capabilities unit”. Some key functions of the HR department in banks and insurancecompanies are:

1. The use of the individual, team and organization learning for serving the customers in abetter way.

2. Ensuring that employee’s knowledge and skills are kept up-to-date.3. Aligning the HR development and learning strategies with the overall strategies of the bank.4. Devising strategies to motivate the employees by means of a suitable compensation structure.

6. ROLE OF HRD PROFESSIONALS IN TRAINING

This is the era of cut-throat competition and with this changing scenario of business, the role ofHR professionals in training has been widened. HR role now is:

1. Active involvement in employee education2. Rewards for improvement in performance3. Rewards to be associated with self-esteem and self-worth4. Providing pre-employment market-oriented skill development education and post- employment

support for advanced education and training.

7. DIFFERENCE BETWEEN PERSONNEL MANAGEMENT AND HUMAN RESOURCE MANAGEMENT

Personnel Management Human Resources Management

1. Management of people employed.

2. Employees are treated as economic man andservices are exchanged for salary, wages.

3. Employees are treated as cost centre.4. Employees are mostly used for organizational

benefit.5. Personnel Management is treated as auxiliary

function.6. Actions are based on procedures.

7. Management tasks are monitoring.8. Decision is slow.

9. Communication is indirect.10. Pay is based on job evaluation.11. Management role is transactional.

12. Job categories are many.

1. Management of employees’ skill, aptitude,creativity etc.

2. Employees are treated as economic man andservices are exchanged for salary, wages.

3. Employees are treated as profit centres.4. Employees are utilized for multiple

benefits.5. HRM is treated as strategic function.

6. Action is based on business needs.

7. Tasks are nurturing.8. Facilitates speedy decisions.9. Communication is direct.

10. Pay is based on performance evaluation.11. Role is transformational leadership.

12. Job categories and grades are few.


8. FEATURES OF HUMAN RESOURCE MANAGEMENT

Goal Achievement: HRM is concerned with employees both as individuals and as a groupin attaining goal concerned with behavioral, emotional and social aspects of personnel.

Development of Human Resource: It is concerned with the development of humanresources, i.e., knowledge, capability, skills, potentialities and attaining and achieving employeegoals, including job satisfaction.

Universal Application: It applies to the employee in all types of organization in the world(industry, trade, service, commerce, economic, social, religious, political and governmentdeparment). Thus, it is common in all types of organizations.

Continuation Process: HRM is a continuous and neverending process. Integrated Approach: It aims at attaining goals of organization, individual and society in an

integrated approach. Overall Development: Organizational goals may be several, growth and development in

addition to the profitability, productivity, innovation, excellence, etc.

9. FUNCTIONS OF HUMAN RESOURCE MANAGEMENT

The functions of HRM can be broadly classified into two categories, viz.

I. Managerial Functions1. Planning: It is a predetermined course of action. Planning pertains to formulating

strategies of personnel programmes and changes in advance that will contribute to theorganizational goal.

2. Organizing: An organization is a means to an end. It is essential to carry out the determinedcourse of action. In the words of J.C. Massie, an organization is a “structure and aprocess by which a cooperative group of human being allocates its among its members,and relationships and activities towards a common objective.”

3. Directing: The next logical function after completing and organizing is the execution ofthe plan. The basic function of personnel management at any level is motivating,commanding, leading and activating people.

4. Controlling: After planning, organizing and directing various activities of personnelmanagement, the performance is to be verified in order to know that the personnelfunctions are performed in conformity with the plan of an organization.

II. Operative Functions

The operative functions of human resource management are related to specific activities ofpersonnel management. viz.:

1. Employment: It is the first operative function of HRM. It is concerned with securingand employment the people possessing the required kind and level of human resourcesnecessary to the achieve the organizational objective it covers such as job analysis,human resource planning, recruitment, placement and internal mobility.


Information

Production

HRMTechnology

MarketingFinance Materials

(i) Job analysis(ii) Human resource planning(iii) Recruitment(iv) Selection(v) Placement(vi) Induction and orientation

2. Human Resource Development: It is the process of improving, moulding and changingthe skill, knowledge, creative ability, attitude, values, commitment, etc., based on presentand future job and organizational requirements.(i) Performance appraisal(ii) Training(iii) Management development(iv) Career planning and development(v) Internal mobility(vi) Transfer(vii) Promotion(viii) Demotion(ix) Change and organizational development

3. Compensation: It is the process of providing adequate, equitable and fair remunerationto the employes. It includes job evaluation, wage and salary administration and bonussecurity measures, etc.(i) Job evaluation(ii) Wage and salary administration(iii) Incentive(iv) Bonus(v) Fringe benefits(vi) Social security measures

4. Human Relations: Practicing various human resource policies and the programes likeemployment development and compensation and the interaction among employes createa sense of relation between the individual worker and the management.


5. Industrial Relations: Its refers to the study of relations among employees, employers,government and trade unions. Industrial relations include. Indian labour market Trade unionism Collective bargaining Industrial conflicts Workers participation in management and Quality circles

6. Recent Trends in HRM: HRM has been advancing at fast rate. The recent trends inHRM include: Quality of work life Total quality in human resources HR accounting audit and research Recent techniques of HRM

10. NATURE OF HUMAN RESOURCE MANAGEMENT

People in any organization manifest themselves not only through individual selections interactionwhen individual come to their workplace but also through group interaction.

I. Complex dynamism

Physiological Psychological Sociological Ethical beings

II. A social system

III. A challenging task

11. DEFINITION OF HRM POLICY

A policy is a plan of action. Brewster and Richbell defined HRM policies as “a set of proposal andaction that act as a point for management of their dealings with employees.” personnel policies. Policiescontribute guides to action. They furnish the general standards.

HRM Policies Need for Policies

Minimiz favouritism

Sets standards for performances

Creates loyalty/enthusiasm


Promotes stability

Basic needs of organization and employees are taken into account

Resolves conflicts

Characteristics of HRM Policies Related to objectives

Easy to understand

Precise

Stable as well as flexible

Based on facts

Appropriate number

Just, fair and equitable

Reasonable review

Advantages of HRM Policies Facilitates delegation

Increases independence in decision making

Better control without friction and conflict

Serves as standard for efficiency

Creates confidence

Speedy decisions

Acts as a coordinating device

Coverage of HRM Policies(a) Social responsibility

(b) Employment policies

(c) Promotion policies

(d) Development policies

(e) Relations policies

Role of Human Resources ManagementHuman resource management plays the most crucial role in the management of an organization.

Human resources play a crucial role in the conversion process of inputs into outputs, product designand quality maintenance. The role of HR at TCS is presented as follows:


Line and Staff Responsibility Role of Personnel Manager and HR ManagerThe relationship which managers in an organization deal with one another are broadly classified

into two categories, viz. Line and staff relationship are often in used way that are loose and unclear.

I. Line relationship

The relationship existing between two managers due to delegation of authority andresponsibility and giving or receiving instructions or orders are called line relationship.

II. Staff relationship

The staff concept is probably as old as organization itself. It is virtually impossible by busyline management to perform all their functions and concentrate on all activities includingmanagement of the people in their respective departments.

The line and staff relationship of HRM:

(i) Human resource management is a line responsibility.

(ii) Line needs assistance in managing men.

(iii) Human resource management is a staff function.

Allocation to projects(domestic/overseas)

Performance discussions andperformance

Recruitment Training technical/behavioral

Career development/monitoring

The Centre Manager


Qualification and Qualities of HR Managers1. Personal attributes

2. Educational skills

3. Discriminating skills

4. Executing skills

Evaluation and Development of HRMThe history of development of HR management in India is comparatively of recent origin. But

Kautilya had dealt with some of the important aspects of human resource management in his Arthashastra400 BC government in those days adopted only since independence.

Role of Personnel Manager

Personnel Role(a) Advisory

(b) Manpower Planning

(c) Training and Development

(d) Measurement and assessment of individual and group behavior.

The line and staff relationship in an organization:

Officers

DeputyManager

Deputy ManagerR&D

Deputy ManagerProduction

DeputyManager

ManagerHRMManager R&D

ManagerProduction

ManagerFinance

Managing Director

OfficersOfficersOfficers

AssistantsWorkforce

General Manager

AssistantsAssistants


Skills Needed by ManagersNot everyone can be a manager. Certain skills, or abilities to translate knowledge into action that

results in desired performance, are required to help other employees become more productive. Theseskills fall under the following categories:

(i) Technical: This skill requires the ability to use a special proficiency or expertise to performparticular tasks. Accountants, engineers, market researchers, and computer scientists, asexamples, possess technical skills. Managers acquire these skills initially through formaleducation and then further develop them through training and job experience. Technicalskills are most important at lower levels of management.

(ii) Human: This skill demonstrates the ability to work well in cooperation with others. Humanskills emerge in the workplace as a spirit of trust, enthusiasm, and genuine involvement ininterpersonal relationships. A manager with good human skills has a high degree of self-awareness and a capacity to understand or empathize with the feelings of others. Somemanagers are naturally born with great human skills, while others improve their skills throughclasses or experience. No matter how human skills are acquired, they’re critical for allmanagers because of the highly interpersonal nature of managerial work.

(iii) Conceptual: This skill calls for the ability to think analytically. Analytical skills enable managersto break down problems into smaller parts, to see the relations among the parts, and torecognize the implications of any one problem for others. As managers assume ever-higherresponsibilities in organizations, they must deal with more ambiguous problems that havelong-term consequences. Again, managers may acquire these skills initially through formaleducation and then further develop them by training and job experience. The higher themanagement level, the more important conceptual skills become.

Although all three categories contain skills essential for managers, their relative importance tendsto vary by level of managerial responsibility.

Business and management educators are increasingly interested in helping people acquire technical,human, and conceptual skills, and develop specific competencies, or specialized skills, that contributeto high performance in a management job. Following are some of the skills and personal characteristicsof a manager.

Leadership — ability to influence others to perform tasks

Self-objectivity — ability to evaluate yourself realistically

Analytic thinking — ability to interpret and explain patterns in information

Behavioral flexibility — ability to modify personal behavior to react objectively rather thansubjectively to accomplish organizational goals

Oral communication — ability to express ideas clearly in words

Written communication — ability to express ideas clearly in writing

Personal impact — ability to create a good impression and instill confidence

Resistance to stress — ability to perform under stressful conditions

Tolerance for uncertainty — ability to perform in ambiguous situations


Functions of HRDThe process of HRD consists of four basic functions:

1. Acquisition of human resources

Process of identifying and employing people possessing required level of skills

Job Analysis

HRP

Recruitment

Selection

2. Development of human resources

Process of improving, moulding and changing the skills, knowledge and ability of anemployee

Employee Training

Management Development

Career Development

3. Motivation of human resources

Process of integrating people into a work situation in a way that it encourages them toperform/deliver to the best of their ability

Understanding needs

Designing motivators

Monitoring

4. Maintenance of human resources

Process of providing employees the working conditions that help maintain their motivationand commitment to the organization

Satisfaction Levels

Retention

New Challenges in Human Resource ManagementThe role of the Human Resource Manager is evolving with the change in competitive market

environment and the realization that Human Resource Management must play a more strategic role inthe success of an organization. Organizations that do not put their emphasis on attracting and retainingtalents may find themselves in dire consequences, as their competitors may be outplaying them in thestrategic employment of their human resources.

With the increase in competition, locally or globally, organizations must become more adaptable,resilient, agile, and customer-focused to succeed. And within this change in environment, the HRprofessional has to evolve to become a strategic partner, an employee sponsor or advocate, and a


change mentor within the organization. In order to succeed, HR must be a business-driven functionwith a thorough understanding of the organization’s big picture and be able to influence key decisionsand policies. In general, the focus of today’s HR manager is on strategic personnel retention and talentsdevelopment. HR professionals will be coaches, counselors, mentors, and succession planners to helpmotivate organization’s members and their loyalty. The HR manager will also promote and fight forvalues, ethics, beliefs, and spirituality within their organizations, especially in the management of workplacediversity.

This paper will highlight on how a HR manager can meet the challenges of workplace diversity,how to motivate employees through gain-sharing and executive information system through properplanning, organizing, leading and controlling their human resources.

Workplace DiversityAccording to Thomas (1992), dimensions of workplace diversity include, but are not limited to:

age, ethnicity, ancestry, gender, physical abilities/qualities, race, sexual orientation, educationalbackground, geographic location, income, marital status, military experience, religious beliefs, parentalstatus, and work experience.

The Challenges of Workplace DiversityThe future success of any organization relies on the ability to manage a diverse body of talent that

can bring innovative ideas, perspectives and views to their work. The challenges and problems facedby workplace diversity can be turned into a strategic organizational asset if an organization is able tocapitalize on this melting pot of diverse talents. With the mixture of talents of diverse cultural backgrounds,genders, ages and lifestyles, an organization can respond to business opportunities more rapidly andcreatively, especially in the global arena (Cox, 1993), which must be one of the important organizationalgoals to be attained. More importantly, if the organizational environment does not support diversitybroadly, one risks losing talent to competitors.

This is especially true for multinational companies (MNCs) who have operations on a global scaleand employ people of different countries, ethical and cultural backgrounds. Thus, a HR manager needsto be mindful and may employ a ‘Think Global, Act Local’ approach in most circumstances. Thechallenge of workplace diversity is also prevalent amongst Singapore’s Small and Medium Enterprises(SMEs). With a population of only four million people and the nation’s strive towards high technologyand knowledge-based economy, foreign talents are lured to share their expertise in these areas. Thus,many local HR managers have to undergo cultural-based Human Resource Management training tofurther their abilities to motivate a group of professional that are highly qualified but culturally diverse.Furthermore, the HR professional must assure the local professionals that these foreign talents are nota threat to their career advancement. In many ways, the effectiveness of workplace diversity managementis dependent on the skilful balancing act of the HR manager.

One of the main reasons for ineffective workplace diversity management is the predisposition topigeonhole employees, placing them in a different silo based on their diversity profile. In the real world,diversity cannot be easily categorized and those organizations that respond to human complexity byleveraging the talents of a broad workforce will be the most effective in growing their businesses andtheir customer base.


The Management of Workplace DiversityIn order to effectively manage workplace diversity, a HR Manager needs to change from an

ethnocentric view (“our way is the best way”) to a culturally relative perspective (“let’s take the best ofa variety of ways”). This shift in philosophy has to be ingrained in the managerial framework of the HRManager in his/her planning, organizing, leading and controlling of organizational resources. There areseveral best practices that a HR Manager can adopt in ensuring effective management of workplacediversity in order to attain organizational goals. They are:

Planning a Mentoring ProgramOne of the best ways to handle workplace diversity issues is through initiating a Diversity Mentoring

Program. This could entail involving different departmental managers in a mentoring program to coachand provide feedback to employees who are different from them. In order for the program to runsuccessfully, it is wise to provide practical training for these managers or seek help from consultantsand experts in this field. Usually, such a program will encourage organization’s members to air theiropinions and learn how to resolve conflicts due to their diversity. More importantly, the purpose of aDiversity Mentoring Program seeks to encourage members to move beyond their own cultural frameof reference to recognize and take full advantage of the productivity potential inherent in a diversepopulation.

Organizing Talents StrategicallyMany companies are now realizing the advantages of a diverse workplace. As more and more

companies are going global in their market expansions either physically or virtually (for example, E-commerce-related companies), there is a necessity to employ diverse talents to understand the variousniches of the market. For example, when China was opening up its markets and exporting their productsglobally in the late 1980s, the Chinese companies (such as China’s electronic giants such as Haier)were seeking the marketing expertise of Singaporeans. This is because Singapore’s marketing talentswere able to understand the local China markets relatively well (almost 75% of Singaporeans are ofChinese descent) and as well as being attuned to the markets in the West due to Singapore’s openeconomic policies and English language abilities.

With this trend in place, a HR Manager must be able to organize the pool of diverse talentsstrategically for the organization. He/she must consider how a diverse workforce can enable the companyto attain new markets and other organizational goals in order to harness the full potential of workplacediversity.

An organization that sees the existence of a diverse workforce as an organizational asset ratherthan a liability would indirectly help the organization to positively take in its stride some of the lesspositive aspects of workforce diversity.

Leading the TalkA HR Manager needs to advocate a diverse workforce by making diversity evident at all

organizational levels. Otherwise, some employees will quickly conclude that there is no future for themin the company. As a HR Manager, it is pertinent to show respect for diversity issues and promote clearand positive responses to them. He/she must also show a high level of commitment and be able toresolve issues of workplace diversity in an ethical and responsible manner.


Control and Measure ResultsA HR Manager must conduct regular organizational assessments on issues like pay, benefits,

work environment, management and promotional opportunities to assess the progress over the longterm. There is also a need to develop appropriate measuring tools to measure the impact of diversityinitiatives at the organization through organization-wide feedback surveys and other methods. Withoutproper control and evaluation, some of these diversity initiatives may just fizzle out, without resolvingany real problems that may surface due to workplace diversity.

Motivational ApproachesWorkplace motivation can be defined as the influence that makes us do things to achieve

organizational goals. This is a result of our individual needs being satisfied (or met) so that we aremotivated to complete organizational tasks effectively. As these needs vary from person to person, anorganization must be able to utilize different motivational tools to encourage their employees to put inthe required effort and increase productivity for the company.

Why do we need motivated employees? The answer is survival. In our changing workplace andcompetitive market environments, motivated employees and their contributions are the necessarycurrency for an organization’s survival and success. Motivational factors in an organizational contextinclude working environment, job characteristics, appropriate organizational reward system and so on.

The development of an appropriate organizational reward system is probably one of the strongestmotivational factors. This can influence both job satisfaction and employee motivation. The rewardsystem affects job satisfaction by making the employee more comfortable and contented as a result ofthe rewards received. The reward system influences motivation primarily through the perceived valueof the rewards and their contingency on performance.

To be effective, an organizational reward system should be based on sound understanding of themotivation of people at work. In this paper, I will be touching on the one of the more popular methodsof reward systems, gain-sharing.

Gain-sharingGain-sharing programs generally refer to incentive plans that involve employees in a common

effort to improve organizational performance, and are based on the concept that the resulting incrementaleconomic gains are shared among employees and the company.

In most cases, workers voluntarily participate in management to accept responsibility for majorreforms. This type of pay is based on factors directly under a worker’s control (i.e., productivity orcosts). Gains are measured and distributions are made frequently through a predetermined formula.Because this pay is only implemented when gains are achieved, gain-sharing plans do not adverselyaffect company costs.

Managing Gain-sharingIn order for a gain-sharing program that meets the minimum requirements for success to be in

place, a few point in the effective management of a gain-sharing program. They are as follows:


A HR manager must ensure that the people who will be participating in the plan are influencingthe performance measured by the gain-sharing formula in a significant way by changes intheir day-to-day behavior. The main idea of the gainsharing is to motivate members to increaseproductivity through their behavioral changes and working attitudes. If the increase in theperformance measurement was due to external factors, then it would have defeated thepurpose of having a gain-sharing program.

An effective manager must ensure that the gain-sharing targets are challenging but legitimateand attainable. In addition, the targets should be specific and challenging but reasonable andjustifiable given the historical performance, the business strategy and the competitiveenvironment. If the gain-sharing participants perceive the target as an impossibility and arenot motivated at all, the whole program will be a disaster.

A manager must provide useful feedback as a guidance to the gain-sharing participantsconcerning how they need to change their behavior(s) to realize gain-sharing payouts. Thefeedback should be frequent, objective and clearly based on the members’ performance inrelation to the gain-sharing target.

A manager must have an effective mechanism in place to allow gain-sharing participants toinitiate changes in work procedures and methods and/or requesting new or additional resourcessuch as new technology to improve performance and realize gains. Though a manager musthave a tight control of company’s resources, reasonable and justifiable requests for additionalresources and/or changes in work methods from gain-sharing participants should beconsidered.

ConclusionThe role of the HR manager must parallel the needs of the changing organization. Successful

organizations are becoming more adaptable, resilient, quick to change directions, and customer-centered.Within this environment, the HR professional must learn how to manage effectively through planning,organizing, leading and controlling the human resources and be knowledgeable of emerging trends intraining and employee development.

Human resources plays a crucial role in the development process of modern economics. AuthorLewis observed “there are great differences in development between countries which seem to haveroughly equal resources so it is necessary.”

Human resources in the nation’s well-being

Man vis-à-vis machine

Personnel management and general management

HR system is a central sub-system

Social significance

Professional significance

Significance for individual enterprise


For smooth functioning of an organization, the employer has to ensure safety and security of hisemployees. Health and safety form an integral part of work environment. A work environment shouldenhance the well-being of employees and thus should be accident free. The terms health, safety andsecurity are closely related to each other. Health is the general state of well-being. It not only includesphysical well-being, but also emotional and mental well-being. Safety refers to the act of protecting thephysical well-being of an employee. It will include the risk of accidents caused due to machinery, fireor diseases. Security refers to protecting facilities and equipments from unauthorized access andprotecting employees while they are on work.

In organizations, the responsibility of employe’s health and safety falls on the supervisors or HRmanager. An HR manager can help in coordinating safety programs, making employees aware about thehealth and safety policy of the company, conduct formal safety training, etc. The supervisors anddepartmental heads are responsible for maintaining safe working conditions.

Responsibilities of managers:

Monitor health and safety of employees

Coach employees to be safety conscious

Investigate accidents

Communicate about safety policy to employees

Responsibilities of supervisors/departmental heads:

Provide technical training regarding prevention of accidents

Coordinate health and safety programs

Train employees on handling facilities and equipments

Develop safety reporting systems

Maintaining safe working conditions

Legislations Governing Occupational Health and safety in India Factories Act, 1948

Mines Act, 1952

Dock Workers Act (Safety, Health and Welfare), 1986

For HealthVentilation and Temperature Disposal of wastesCleanliness Dust and fumes

Artificial Humidification OvercrowdingLightening Drinking water

Latrines and urinals Spittoons


For SafetyFencing of machinery Work on machinery in motionCashing of new machines Protection of eyes

Hoists and lifts Self-acting machineryExcessive weights Pressure plant

Precautions against dangerous fumes Floors, stairs and means of accessPrecautions in case of fire Explosives of inflammable gasSafety of buildings and machinery Maintenance of buildings

For WelfareWashing facilities Facilities for sittingFirst aid appliances Canteens

Rest rooms and shelters CrèchesFacilities for storing and drying clothing

Note: Explanation of Factories Act, 1948 is not given

Mines Act, 1952 It contains provisions for measures relating to the health, safety and welfare of persons

employed in the coal and oil mines.

It provides the following provisions for health and safety of mine workers:Drinking water ConservancyMedical appliances Working hoursNotice about accidents Notice of certain diseases

Dock Workers (Safety, Health and Welfare) Act, 1986 It contains provisions for the health, safety and welfare of workers working in ports/docks.

It provides the following provisions:Surfaces Fencing of dangerous placesPassages to be kept clear Railings and fencings

Staging construction and maintenance Work on stagingLife-saving appliances IlluminationFire protection Excessive noise

Access between deck and hold StairsFloor loading Construction

Access between deck and vessel Access between shore and ship


Ethical IssuesOf all the organizational issues or problems, ethical issues are the most difficult ones to handle or

deal with. Issues arise in employment, remuneration and benefits, industrial relations and health andsafety.

Diagrammatic Representation of HR Ethical Issues

Cash and Compensation PlansThere are ethical issues pertaining to the salaries, executive perquisites and the annual incentive

plans etc. The HR manager is often under pressure to raise the band of base salaries. There is increasedpressure upon the HR function to pay out more incentives to the top management and the justificationfor the same is put as the need to retain the latter. Further ethical issues crop in HR when long-termcompensation and incentive plans are designed in consultation with the CEO or an external consultant.While deciding upon the payout, there is pressure on favouring the interests of the top management incomparison to that of other employees and stakeholders.

Race, Gender and DisabilityIn many organizations till recently, the employees were differentiated on the basis of their race,

gender, origin and their disability. Not anymore ever since the evolution of laws and a regulatoryframework that has standardized employee behaviors towards each other. In good organizations, theonly differentiating factor is performance! In addition, the power of filing litigation has made putorganizations on the back foot. Managers are trained for aligning behavior and avoiding discriminatorypractices.

Employment IssuesHuman resource practitioners face bigger dilemmas in employee hiring. One dilemma stems from

the pressure of hiring someone who has been recommended by a friend, someone from your family ora top executive.

Employee Responsibility Cash and CompensationPlans

Performance Appraisal

Ethical Issues in HR

Race, Gender andDisability

Safety and Health Employment Issues Restructuring andLayoffs


Yet another dilemma arises when you have already hired someone and he/she is later found tohave presented fake documents. Two cases may arise and both are critical. In the first case, the personhas been trained and the position is critical. In the second case, the person has been highly appreciatedfor his work during his short stint or he/she has a unique blend of skills with the right kind of attitude.Both the situations are sufficiently dilemmatic to leave even a seasoned HR campaigner in a fix.

Privacy IssuesAny person working with any organization is an individual and has a personal side to his existence

which he demands should be respected and not intruded. The employee wants the organization toprotect his/her personal life. This personal life may encompass things like his religious, political andsocial beliefs, etc. However, certain situations may arise that mandate snooping behaviors on the partof the employer. For example, mail scanning is one of the activities used to track the activities of anemployee who is believed to be engaged in activities that are not in the larger benefit of the organization.

Similarly, there are ethical issues in HR that pertain to health and safety, restructuring and layoffsand employee responsibilities. There is still a debate going on whether such activities are ethicallypermitted or not. Layoffs, for example, are no more considered as unethical as they were thought of inthe past.

Qualities of a Good Manager

Leadership SkillsStrong managers tend to have natural or well developed leadership skills. They know how to take

charge without making others feel small. They know how to make critical decisions. And they knowhow to motivate their team members to deliver strong results.

These are some of the basic leadership skills, and they are crucial for someone who wants to doa fine job managing others. Leaders tend to intuitively know when to pick battles and when to regroup.They are usually people of courage, and they display that in many ways.

Competence and TalentStrong managers should be highly competent in the functions they oversee, and they should also

have talent. Those who are good at management need to know how to get the job done. Otherwise,how can they best advise others to accomplish what must get done?

Excellent Relationship SkillsThose who manage well tend to have excellent relationship skills. They are good with people, and

they know how to get along with all kinds of personalities.

These relationship skills are required not only to lead and motivate their subordinates. Stronginterpersonal skills are also critical for handling relationships with those in upper management as wellas outside parties.


OpennessGood managers are open to the ideas of others. They may not always go along with them, but

they are willing to listen and to find out what others think.

They also invite feedback from those who report to them. Instead of being threatened by suchfeedback, a quality manager recognizes that hearing such information is critical for continued success.

Mentoring RoleA good manager looks to mentor those who report to him. He wants others to succeed, and

actually cares about the development of his employees.

Instead of looking out for only himself, this kind of manager looks out for the good of the team aswell as of individuals who comprise it. He mentors others to be successful, and sees this mentoring asa huge responsibility.

These are a few of the traits of a good manager. When you are lucky enough to have one, you willeasily recognize and treasure such traits.

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