CP 205: Human Resource Management

End Semester Question

Q.1. (a) Distinguish between Human Resource and Human Capital. Explain in brief
the constituents of human capital. [2018]
Ans: The terminology of human resources management (HRM) and human capital
management (HCM) are often used interchangeably to describe HR technology
solutions. However, are they the same? Although both HRM and HCM are dealing with
individuals within organisations, there are differences between them in terms of historical
evolution perspective.

What is HRM and HCM?

When you see the term of resource and capital, you will clearly see differences. According
to Google dictionary, resource is a stock or supply of money, materials, staff, and other
assets that can be drawn on by a person or organization in order to function effectively.
Thus, you can conclude that human resource refers to individuals within organization who
manage company’s resource such as employees. According to Investopedia, they are the
key in helping business deal with a fast-changing environment and greater demand for
quality employees. Additionally, human resources management deals with payroll, tax and
tax optimisation, working hour regulations, compensation, recruitment contracts,
supervising training attendance sheet, and employment laws.
On the other hand, capital has different meaning from resource. Google
dictionary defines capital as wealth in form of money or other assets owned by a person or
organisation contributed for a particular purpose such as starting a company or
investment. Management Study Guide (MSG) refers capital as produced good or service
which enables an individual/organisation to deliver high quality output. Capital, according
to MSG, acts as catalyst to increase productivity in organizations. Thus, capital must be
grown. For example, business cannot run well unless employee is being acknowledged
more to ensure business productivity and performance. Additionally, Xavier
Bariller mentioned that human capital in an organisation has different layers and
perspective to solve different problems. Purpose of human capital management is to align
and optimise individuals with business goals and needs to achieve superior performance.
Hence, you can conclude that human capital management refers to managing employees to
improve quality of life inside and outside organisation.

The Constituents of Human Capital

The constituents of human capital Human capital consists of intellectual, social and
organizational capital.
1. Intellectual capital :
The concept of human capital is associated with the overarching concept of intellectual
capital, which is defi ned as the stocks and fl ows of knowledge available to an
organization. These can be regarded as the intangible resources associated with people
which, together with tangible resources (money and physical assets), comprise the market
or total value of a business. Bontis (1998) defi nes intangible resources as the factors other
than fi nancial and physical assets that contribute to the value-generating processes of a fi
rm and are under its control.
2. Social capital :
Social capital is another element of intellectual capital. It consists of the knowledge derived
from networks of relationships within and outside the organization. The concept of social
capital has been defi ned by Putnam (1996) as ‘the features of social life – networks, norms
and trust – that enable participants to act together more effectively to pursue shared
objectives’. It is important to take into account social capital considerations, that is the
ways in which knowledge is developed through interaction between people. Bontis et al
(1999) point out that it is fl ows as well as stocks that matter. Intellectual capital develops
and changes over time and a signifi cant part is played in these processes by people acting
together.
3. Organizational capital :
Organizational capital is the institutionalized knowledge possessed by an organization that
is stored in databases, manuals, etc (Youndt, 2000). It is often called ‘structural capital’
(Edvinson and Malone, 1997), but the term ‘organizational capital’ is preferred by Youndt
because, he argues, it conveys more clearly that this is the knowledge that the organization
actually owns.

(b) Explain in brief the key competency areas of a human resource professional.
[2018]
Ans: Essential HR Manager Skills and Competencies
Human resource management responsibilities require an overlapping set of skills and
competencies. If you’re looking for an edge in today’s competitive job market,
understanding  and developing these skills is the key to success. Let’s count down six core
competencies for HR professionals.

The role of the HR professional is constantly evolving, but without core competencies and
skills, HR managers could dramatically hurt your business.
There are several key skills and competencies for HR professionals to be aware of today.
For any business to be successful, it’s essential that HR managers understand and master
any HR core competencies they need to properly perform their job functions.
In fact, according to Evren Esen, the survey program manager at SHRM, “We can actually
see the profession changing. Some core areas remain the same, but others, based on how
the raters assess and perceive HR, are new.”
 Skills and Competencies of HR Professionals
Let’s take a look at some key HR skills and competencies your human resource managers
should possess to be able to effectively perform their job functions and ensure the success
of your business.
  Communication Skills
It should be no surprise that an effective HR professional needs to possess excellent
communication skills. Having proper communication skills is one of the biggest key
competencies of HR professionals because their job mainly consists of facilitating
discussion between employees and employers. Without proper communication skills, HR
professionals would not be able to effectively relay information between the two parties,
causing the business to suffer. Having effective communication skills is such an important
human resources competency that, Dave Ulrich, a professor of business administration at
the University of Michigan, states, “You’ve got to be good at all of them, but, no question, is
key.”

 Critical Thinking
Another major key competency your HR managers should possess is critical thinking skills.
HR professionals spend a lot of their time balancing complex situations and without being
able to think critically, your HR managers would not be able to properly create an
environment where all employees feel comfortable and are motivated to improve the
business. In fact, according to Bloomberg, critical thinking is in the “sweet spot” of rare
skills that companies want most but are less common to find.
 Organizational Skills
While there are many key competencies of HR professionals to master today, possessing
superior organizational skills is a must. Since being an HR manager is a huge juggling act,
it’s important to be organized to stay ahead of any HR issues that may arise. A great way to
help your HR professionals become more organized is to have them perform the same
actions, in the same way, each day to help them build a routine. When all HR materials and
practices are organized, your company will run much more smoothly.
 Leadership
One of the biggest HR core competencies your HR professionals need to possess is
leadership. HR managers are responsible for ensuring that the entire workforce is properly
taken care of and resolving many issues the business may face. HR managers are not only
responsible for the entire workforce but their department too so without the ability to
effectively lead, your entire organization will suffer. Part of being an effective HR leader is
to be flexible. For your business to be successful, your HR professionals have to be open-
minded and willing to accept change and listen to opposing perspectives. When your HR
managers are flexible in their position, your business and employees will be more flexible
as well.
If you’re an HR professional yourself, and you’re concerned whether you’re meeting
these key HR skills and competencies, Ulrich suggests, “Review the competencies with your
business leaders and ask them if you’re doing them. Next, pose the same questions to your
HR team. Then, ask yourself whether you really know the business or if you’re glossing on
the surface.” He then suggests setting your priorities and getting to work on mastering
these HR core competencies.
Possessing key competencies of HR professionals is so important because, according to
Human Resources Management Policies and Practices in the United States, “70 percent of
responding organizations said HR has a place on the board of directors, and 66 percent
reported having a written HR management strategy.” For HR professionals to reach their
full potential at any organization, it’s essential that they learn and master all HR skills and
competencies.

Now that we know some of the major human resources competencies your HR
professionals should possess, let’s take a look at how you can ensure that you always hire
the best talent for your business with a proper skills and competencies model.
A proper competency model is essential for your HR managers to be able to hire employees
that will not only help the business stay successful but decrease turnover rates as well.
Since competencies are sets of skills, knowledge, abilities, and attributes that enable people
to successfully perform their jobs, a proper competency model is essential to achieve
higher ROI of employees hired and lower turnover. There are many steps in developing a
competency model for your HR managers to ensure that they’re hiring competent
employees to work for your company.
Your competency model development should begin with a desire to support your
associates throughout their entire employee lifecycle including selection, performance,
management, training, and succession planning. HR competencies like pre-hire selection
assessments, performance management criteria, succession planning programs, and
training and development curriculums are essential to ensure that you’re not only hiring
the best employees, to begin with but that those employees continue to do well in their
positions and help your company grow and stay successful. 

Q.2. Define Human Resource Planning. What are the aims of Human Resource
Planning? As a Human Resource Manager, What are the activities would you
undertake for an efficient Human Resource Planning for your organization? [2018]
Ans: Human resource planning (HRP) is the continuous process of systematic planning
ahead to achieve optimum use of an organization's most valuable asset—quality
employees. Human resources planning ensures the best fit between employees and jobs
while avoiding manpower shortages or surpluses.
 There are four key steps of the HRP process. They include analyzing present labor
supply, forecasting labor demand, balancing projected labor demand with supply, and
supporting organizational goals.
HRP helps companies is an important investment for any business as it allows companies
to remain both productive and profitable.
Human resource is the most important asset of an organisation. Human resources planning
are 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.

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.”

Objectives of Human Resource Planning (HRP)

1. To recruit and maintain the HR of requisite quantity and quality.

2. To predict the employee turnover and make the arrangements for minimizing
turnover and filing up of consequent vacancies.
3. To meet the requirements of the programmes of expansion, diversification etc.
4. To anticipate the impact of technology on work, existing employees and future
human resource requirements.
5. To progress the knowledge, skill, standards, ability and discipline etc.
6. To appraise the surplus or shortage of human resources and take actions
accordingly.
7. To maintain pleasant industrial relations by maintaining optimum level and
structure of human resource.

Benefits of Human Resource Planning

1. The human resource planning helps in forecasting the future needs of the manpower
and not only this, but it also helps in anticipating the vacancies arising in the near future.
2. It is cost effective, i.e. the enterprise can anticipate the shortage and surplus of
manpower and can control the imbalance, that may become unmanageable or expensive.
3. Better planning for the employee development. Through human resource planning,
the skills of the existing employees can be improved by giving them timely training and
development opportunities.
4. Training programs become more effective since the manpower gaps, arising out of
shortage or surplus, can be determined through the manpower planning and the training
can be imparted accordingly.
5. It helps to make the strategic decisions related to the hiring and training of the
manpower, in the case of shortage and layoff, termination or replacement of the
manpower, in a case of surplus.
6. Through Human Resource planning, the idle arising out of vacancy can be reduced
and thus the overall performance of the business remains unaffected.
Thus, through human resource planning the firms can effectively manage the manpower
requirements (both current and future) and also helps in reducing the lead time spent on
searching the prospective candidate for the vacant position.
Activities Involved In The Process Of Human Resource Planning
The various activities involved in the process of human resource planning are now
discussed one by one.

1. Analysing organisational plans and objectives:

The process of human resource Planning begins with analysing the overall plans and
objectives of organisation. The reason being the human resource plans stem from business
plans. Analysis of business plans into sub-sectional and functional plans such as
technology, production, finance, marketing, expansion diversification provides for
assessing the human resource requirements for each activity in each section and
department.
Similarly the analysis of organisational objectives also provides for human resources
required by an organisation. For example, if the objective of the organisation is rapid
growth and expansion it would require more human resources for its all functional areas.
Thus, it is evident the human resource planning needs to be made in accordance to the
overall organisational plans and objectives.

2. Analysing objectives of Human Resource Planning:

The main purpose of human resource planning is matching employees’ abilities to
enterprise requirements, with an emphasis on future instead of present arrangements.
According to Sikula, “the ultimate mission or purpose of human resource planning is to
relate future human resources to future enterprise need so as to maximise the future
return on investment in human resources”. For this, managers need to specify the
objectives of human resource planning with regard to the utilization of human resources in
the organisation.

While developing specific objectives of human resource planning certain questions

need to be addressed like:
1. Whether the vacancies, as and when these arise, will be filled in by promotion, transfer
or from external sources?
2. What will be the selection procedure?
3. How will provisions be made for training and development of employees?
4. How to restructure job positions, i.e., how to abolish the old or boring jobs and replace
these by the challenging ones?
5. How to downsize the organisation in the light of changing business and industrial
environment?

3. Forecasting Demand for Human Resources:

The demand for human resources in an organisation is subject to vary from time to time,
depending upon both external and internal factors External factors include competition,
economic and political climate, technological changes, government policy, etc.
Among the internal factors include growth and expansion, design and structural changes,
management philosophy, change in leadership style, employees resignation retirement,
termination, death, etc. Therefore, while forecasting future demand for human resources in
the organisation, these factors need to be taken into consideration.

Forecasting demand for human resources is good for several reasons because it can
help:
(i) Quantify the number of jobs required at a given time for producing a given number of
goods or offering a given amount of services,
(ii) Ascertain a staff-mix needed at different points of time in the future and
iii) Ensure adequate availability of people with varying qualifications and skills as and
when required in the organisation.
How to forecast requirement for human resources in the future? There are various
techniques varying from simple to sophisticated ones employed in human resource
forecasting.

These include:
1. Management Judgment
2. Work-Study Method
3. Ratio-Trend Analysis
4. Delphi Technique
5. Flow Models
6. Mathematical Models.
These are described one by one:
a. Management Judgment:
This technique is very simple and time-saving. Under this technique, either a “bottom-up’
or a ‘top-down’ approach is employed for forecasting future human resource requirement
of an organisation. In case of bottom-up approach, lime managers prepare departmental
requirements for human resource and submit it to the top managers for their review and
consideration.
In the ‘top-down’ approach, the top managers prepare the departmental forecasts which
are reviewed with the departmental heads or managers. However, neither of these
approaches is accurate. Forecasts based on these approaches suffer from subjectivity. This
technique is suitable only for small firms or in those organisations where sufficient data-
base is not readily available.

b. Work-Study Method:
This method can be used when it is possible to measure work and set standards and where
job methods do not change frequently. In this method as used by Fredrick Winslow Taylor
in his ‘Scientific Management’ time and motion study are used to ascertain standard time
for doing a standard work. Based on this, the number of workers required to do standard
work is worked out. The following example illustrates this method.

Supposing, the span of control is ten, then, there will be requirement for five (50/10)
supervisors also to supervise the work of 50 workers as forecast just above.

c. Ratio- Trend Analysis:

This is one of the quickest forecasting techniques. Under this method, forecasting for
future human resource requirements is made on the basis of time series data. In other
words, this technique involves studying past ratios (e.g., total output/ number volume/
number of sales persons, direct workers is made for indirect workers) and, based on these
forecasting is made for future ratios.
While calculating future retios, allowances can be made for expected changes in
organisation, methods and jobs. The demand for human resources is calculated on the
basis of established ratios between two variables. Go through the following illustration. It
will help you understand how Ratio-Trend Analysis is used for forecasting human
resources requirement of an organisation.
In case, there is change in the employees’ mental and physical health in 2000-2001, the
above estimates need to be revised accordingly in order to estimate appropriate
requirement for human resources in 2000-2001.

d. Delphi Technique:
Delphi technique is named after the ancient Greek oracle at the city of Delphi This is one of
the judgmental methods of forecasting human resource needs. It is a more complex and
time-consuming technique which does not allow group members to meet face-to-face.
Therefore, it does not require the physical presence of the group members.

The following steps characterize the Delphi technique:

1. The members are asked to provide their estimates of human resource requirements
through a series of carefully designed questionnaires.
2. Each member anonymously and independently completes the first questionnaire.
3. Results of the first questionnaire are compiled at a central location, transcribed, and
copied.
4. Each member receives the copy of the result.
5. After viewing the results, members are again asked to review their estimates. The initial
results typically trigger ne w estimates or cause changes in the original position.
6. Steps 4 and 5 are repeated as often as necessary until a consensus is reached.
The Delphi technique insulates group members from the undue influence of others. Also,
since it does not require the physical presence of group members, even a global company
could use this technique with members/managers stationed in different countries.
As the technique is extremely time consuming, it is frequently not appropriate when a
speedy decision is necessary Further, the technique might not develop the rich pool of
alternatives that interacting or nominal groups do. The ideas that might arise from the heat
of face-to-face interaction might never come up.

e. Flow Models:
Among the flow models, the simplest one is called the Markov model.
This model involves the following:
(i) Determination of time period that will be covered under forecast.
(ii) Establishment of employee’s categories also called states. There should not be
overlapping among the various categories.
(iii) Enumeration of annual flows among various categories ox states for several time
periods.
(iv) Estimation of probability of flows or movements from one category to another based
on past trends in this regard.
However, the Markovian model suffers from disadvantages like heavy reliance on past
data, which may not be accurate in abnormal situations like periods of turbulant change,
and individual accuracy in forecast is sacrificed at the cost of group accuracy
f. Mathematical Models:
Mathematical models express relationship between independent variables (e.g.,
production, sales, etc.) and dependent variable (e.g., number of workers required). The
following is one'” such widely used mathematical model for forecasting employees need:
Where, En = (Laggn + G) 1/% / Y
En is the estimated number of workers required in n number of years. Lagg refers to the
overall value (in rupee terms) of current business operations. G denotes the overall growth
in business activity over n years at current value terms i.e. in rupees.
Y implies average improvement in productivity estimated during n number of years.
Y is level of business activity per worker. Following above formula, estimates for
manpower requirements in future are made. Due allowance can also be made for expected
changes in business strategy in future.

4. Forecasting Supply of Human Resources:

Having forecast human resource demand, the next task involved in human resource
planning is to forecast human resource supply Forecast of human resource supply gives
the quantity and quality of people available from internal and external sources of
manpower supply, after making due allowances for absenteeism, transfers promotions,
changes in work hours, and other conditions of works”.
Forecasting of human resources begins with the current human resource inventory, also
called human resource audit. Human resource audit is separately discussed, in detail, later
in chanter 29. In brief, human resource inventory contains information about present
human resources in the organisation.
It reveals what is available in the stock of manpower and what can be expected in future.
Thus, it can indicate whether the supply of human resources is less than its demand or
more than its demand. Whatever be the situation, the same will be made good accordingly.

5. Matching Demand and Supply:

Once demand for and supply of human resources of an organisation is forecast, the two
need to be reconciled. Such reconciliation will reveal either shortage or surplus of human
resources in future.
Accordingly, action plans will be prepared to meet the situation, i.e., to strike a balance
between the two. In the case of shortage of human resources, this will be met through
recruitment, transfer, promotion, training and development, retention, etc.
On the contrary, in case of surplus human resources, it can be made good through schemes
like redeployment, retrenchment; voluntary retirement scheme (VRS) through golden
handshake etc. will be recommended and implemented. Yes, downsizing should be done in
consultation with the employees union. This will help avoid employees’ resistance for
change in job.

6. Monitoring and Control:

The sixth and final step involved in human resource planning is monitoring and control.
Once the action plans are implemented, these need to be reviewed, regulated and
monitored against the set standards.
Monitoring of action plans and programmes help reveal deficiencies, if any Corrective
measures help remove deficiency and, thus, control the implementation of action plans in
the right direction. In case of changes in business environment, the action plans formulated
earlier need to be modified in the light of changing needs of organisation in the changed
environment.

Q.3. Write a note on the Causes of absence of employee for hi/her job. [2018]
Ans: Absenteeism refers to the habitual non-presence of an employee at his or her job.
Habitual non-presence extends beyond what is deemed to be within an acceptable realm of
days away from the office for legitimate causes such as scheduled vacations, occasional
illness, and family emergencies.
Possible causes of over-absenteeism include job dissatisfaction, ongoing personal
issues, and chronic medical problems. Regardless of the root cause, a worker who exhibits
a long-term pattern of being absent may tarnish his reputation, which may consequently
threaten his long-term employability. However, some forms of absence from work are
legally protected and cannot be grounds for termination.
Below are some detailed explanations of the top reasons absenteeism may occur:

 Burnout. Overworked employees with high-stake roles sometimes call in sick due to

high stress and lack of appreciation for their contributions.
 Harassment. Employees who are habitually picked on—either by senior
management personnel or fellow staffers are apt to ditch work, in order to escape
the relentless unpleasantness.
 Childcare and eldercare. Employees might have to miss extensive days of work if
they are charged with watching loved ones when regular hired caregivers or
babysitters become sick and are temporarily unable to fulfill their obligations.
 Mental illness. Depression is the main cause of American absenteeism, according to
statistics from the National Institute of Mental Health. This condition often leads
individuals to abuse drugs and booze, which in turn causes further missed days of
work.
 Disengagement. Employees who feel dispassionate about their jobs are likely to
blow off work, simply due to the lack of motivation.
 Injuries or illnesses. Illness, injuries, and doctor's appointments are the main
reported reasons employees don't come into work. The number of absentee cases
dramatically rises during flu season.
Example of Absenteeism
For example, Angela is dissatisfied with her working environment and job responsibilities.
She regularly calls in sick to work for days at a time, often missing five days each month,
even though she does not have any actual chronic health problems.

Tips to Reduce Absenteeism in the Workplace

After understanding the causes for absenteeism, you should then work to reduce it. Some
actionable tips for this are:

i. Create a clear attendance policy and set expectations

Your attendance policy should explain how to report absences, the procedures in place
surrounding absences, and your policy for recording absences. It should also contain
information about how you will follow up on repeated absences and the repercussions for
excessive absenteeism.

You should discuss the policy with all members of staff and ask them to sign it to show
their understanding.

The policy will act as a resource to your employees about your expectations. Aim to be
consistent and follow the attendance policy in all possible situations.

ii. Provide support

If an employee is absent due to personal issues, like bereavement or mental health

problems, you should provide support both when they are absent and on their return to
work. Support will likely make them feel happier to return to work earlier and prevent
repeated absenteeism.

You could also consider offering your employees time off in lieu and/or flexible working
time. This will ensure people feel like they get a good work-life balance and that you value
their needs.

iii. Reduce workplace stress

You should always try to rectify factors at work that may cause stress for your employees.
For example, if a piece of equipment is broken and employees are stressing, you should
aim to fix it as soon as possible.
You should also implement programmes that encourage employee health and wellbeing.
This should have your employees’ physical and mental health at the forefront and will
prove to your workforce that you value both their work and their health.

iv. Provide feedback

You should provide your employees with frequent and  effective feedback, especially
when they’ve done something well. If you never provide feedback, your workforce may feel
that you don’t appreciate their hard efforts and you therefore won’t notice when they’re
not at work.

v. Reward good attendance

You need to plan this one carefully, as there may be genuine reasons why somebody is
absent, such as long-term sickness. However, you should aim to provide a reward for
employees who display good attendance throughout the year. This will encourage all to
attend and show employees who are always at work that you value them.

Q.4. Distinguish between Recruitment and Selection. What are the advantages and
disadvantages of E-recruitment? [2018]
Ans:

BASIS FOR
RECRUITMENT SELECTION
COMPARISON

Meaning Recruitment is an activity of Selection refers to the

searching candidates and process of selecting the best
encouraging them apply for candidates and offering
it. them job.

Approach Positive Negative

Objective Inviting more and more Picking up the most suitable

candidates to apply for the candidate and rejecting the
vacant post. rest.

Key Factor Advertising the job Appointment of the

candidate

Sequence First Second

Process Vacancies are notified by the The firm makes applicant

 BASIS FOR
RECRUITMENT SELECTION
COMPARISON

firm through various sources pass through various levels

and application form is made like submitting form,
available to the candidate. written test, interview,
medical test and so on.

Contractual As recruitment only implies Selection involves the

Relation the communication of creation of contractual
vacancies, no contractual relation between the
relation is established. employer and employee.

Method Economical Expensive

Advantages of E-Recruitment!
1. It’s Cost Effective
When you post a job ad on Facebook, you can pay for as much or as little exposure as you
want, as well as target it to a very specific audience. Indeed, if you manage your campaign
effectively, you can save plenty of precious cash, while attracting applicants who are
the perfect fit for your vacancy.

2. It’s Immediate
Most job posts – and replies – appear in real time. This can help you either increase your
efforts to attract more candidates, a different set of candidates (early- instead of mid-
career professionals, for example) or even stop candidates from applying if you’ve already
found the right person for the job.

3. You Can Reach a Bigger Audience

The internet is a global phenomenon, with more and more users gaining access every day,
while in most developed countries, internet usage is extremely high. Therefore, you are
gaining exposure to a huge potential pool of applicants.

If you are looking for younger recruits in particular, than e-recruitment is probably the
single most effective and efficient strategy possible; in the US, for instance, 98% of the 18–
29 age group are active internet users.

4. It’s Easy
Almost anyone can post a job advertisement online, because the majority of established job
boards make the process clear, easy to understand and user-friendly.

 
Conversely, the process is very simple for the applicant, too, making it quick and painless
for interested parties to apply on the spot, as opposed to mailing CVs and written
applications through the post.

5. You Can Make Your Job Ad More Dynamic

Posting a job online or via social media platforms gives you a chance to be more creative
with your ad; for instance, you could create and attach a short video showing off the
benefits of working for your company.

Other Advantages are:

a. Lower costs to the organization. Also, posting jobs online is cheaper than advertising in
the newspapers.

b. No intermediaries.

c. Reduction in the time for recruitment (over 65 percent of the hiring time).

d. Facilitates the recruitment of right type of people with the required skills.

e. Improved efficiency of recruitment process.

f. Gives a 24 X 7 access to an online collection of resumes.

g. Online recruitment helps the organisations to weed out the unqualified candidates in an
automated way.

h. Recruitment websites also provide valuable data and information regarding the
compensation offered by the competitors etc. which helps the HR managers to take various
HR decisions like promotions, salary trends in industry etc.

The Disadvantages of Online Recruitment

For all its perks, there are downsides to online recruitment that you should also think
about. Consider some of the following.

1. Costs Can Spiral

Depending on the online platform you use, you may have to pay a subscription fee or other
costs to post your vacancy. Some sites might even require a membership fee or charge for
extra services like application tracking or analytics to manage your advert.
 
Also, if you are not getting the kind of response you’re looking for, the costs of leaving the
ad to run can accumulate.
2. It Can Be Difficult to Measure Effectiveness
Not all online recruitment services offer an in-depth analysis of your posting; therefore, it
can be hard to figure out what is and isn’t working and how to optimise your ad.
 
Of course, this is a common problem in offline recruitment, too, but it’s worth
remembering that just because you’ve posted an ad online, it doesn’t mean that you will
always have access to reams of metrics and supporting data.

3. It’s Informal
For some roles, companies perceive that online job postings – particularly on social media
– can give off the wrong image of their company. This is particularly true for executive-
level roles, particularly at firms (or in industries) that have a strong corporate or
professional culture.
 
It’s not uncommon, for instance, for high-calibre firms to advertise C-level roles in
reputable print publications such as The Economist or the Financial Times.

Other Disadvantages are:

a. Screening and checking the skill mapping and authenticity of millions of resumes is a
problem and time consuming exercise for organizations.
b. There is low Internet penetration, no access and lack of awareness of internet in many
locations across India.
c. Organizations cannot depend solely on the online recruitment methods.
d. In India, the employers and the employees still prefer a face-to-face interaction rather
than sending e-mails.

Q.5. What is Performance Management? How would you deal with underperformers
in your organization? Explain. [2018]
Ans: Performance management is the process of continuous feedback and communication
between managers and their employees to ensure the achievement of the strategic
objectives of the organization.
The definition of performance management has evolved since it first appeared as a
concept. What was once an annual process is now transitioning to continuous performance
management. The goal is to ensure that employees are performing efficiently throughout
the year, and in the process, address any issues that may arise along the way that affect
employee performance.
Performance management differs from talent management in that the latter is a set
of initiatives taken to engage employees to retain them. Performance management, on the
other hand, is an initiative that guides employees towards establishing and achieving their
goals in alignment with the organization's immediate and overarching goals.
Performance management is the process or system by which an organization measures
and improves performance within its workforce. An organization may use performance
management to monitor performance on an organizational level, a departmental or team
level, and an individual level, although the term most commonly refers to individual
performance. Common elements of a performance management system include:

- Performance reviews - Manager one-on-ones - Peer feedback - Performance

improvement plans - Goal-setting and tracking - Rewards and recognition programs

Within a typical performance management system, managers are responsible for tracking
and developing performance with their own team members and then reporting to the
higher leadership team. In the past, the performance management process often consisted
of a round of annual performance reviews for each employee. However, as research reveals
the effectiveness of frequent feedback more and more, many companies have dropped the
annual review model and adopted a system of regular manager check-ins and informal
feedback sessions. This type of performance management can help employees understand
and align with company goals and objectives regularly, making small adjustments over
time instead of trying for one larger course correction at the end of every year.

Use the following tips to handle an underperforming employee.

1. Timing is everything. Try not to reprimand an employee in the heat of the moment,
when you’re more likely to say something you’ll later regret. Once you’ve given
yourself time to cool off, schedule a one-on-one meeting with the employee. Be ready
to have a two-way conversation that allows for your employee to explain his or her
side of the situation.

2. Focus on facts. Getting negative feedback is never easy, and the employee is likely to
take it personally. To help prevent that from happening, focus on the facts, giving
clear examples of times when the employee failed to meet the expectations of the job.
Explain how these behaviors affect not just the rest of the team but the employee’s
own future at the company - including promotional opportunities, recognition,
bonuses and job security.

3. Get to the root of the problem. Never assume you know why an employee is
performing poorly. Instead, take time to try to understand the underlying issue.
Perhaps the employee is overwhelmed by his or her workload. Or maybe the
employee doesn’t feel challenged enough. Perhaps your employee is simply unclear
on his or her role and the expectations around it. Then again, the issue could also be
personal. Only once you know what the real issue will you be able to find a solution
and move forward.
 4. Work on a solution together. Don’t simply say, “Here’s how we’re going to fix this,”
and dictate a solution. Work with your employee to come up with a solution
together. Giving your employee a chance to take ownership of the situation is
empowering and provides extra motivation to improve. As you work on a solution,
outline clear objectives and necessary actions to meet those objectives. See if the
employee needs extra training or resources that would help him or her perform
better.

5. Follow up. Once you’ve formulated a plan, create a schedule to follow up regularly

(every couple of weeks) and assess the employee’s progress and address any
challenges that have come up.

6. Recognize and reward improvement. If the employee is improving, let them know
their hard work is not going unnoticed, whether it’s by giving a gift card to the
employee’s favorite coffee shop or a handwritten note to say “job well done.”
A personal and sincere gift that shows you see and appreciate your employee’s
hard work will go a long way to motivate him or her to keep improving.

Unfortunately, not every underperforming employee is motivated to improve. If

you’ve exhausted every effort to “save” your employee, it may be time to let the employee
go. Holding onto an underachieving employees could have a toxic effect on the rest of the
business.

In Summary
Setting aside all of these techniques for managing poor performance, if there’s one thing
you should remember about how to manage poor performing employees, it’s that it should
not be the big deal that we so often make of it.
If you address inappropriate behaviour when it first appears, you will start viewing it not
as a burden but as an opportunity to coach, develop and grow.

Dealing with underperformer Employees:

1. Discuss their work-life balance.
Employees who consistently meet metrics don't suddenly forget how to do their jobs. Even
if they're unhappy in their role, there's no benefit for an agent to intentionally
underperform. The poorer the service, the more frustrated the customer gets. Rather than
having a quick, painless call, they'll have to spend time diffusing an angry customer.
With this in mind, Larry focuses his conversations around external influences. He gives
them the option to talk about their personal lives and see if there's anything outside of
work that could be affecting performance. If so, then they can take the appropriate
measures to work around the employee's personal issues.

2. Provide the customer's perception of their performance.

Sometimes agents don't understand how their work affects the customer experience. When
you task employees with different daily metrics, agents may prioritize some benchmarks
over others. They may not think it's a big deal, but meeting every metric is crucial to
providing a consistent customer experience.
In these instances, you can motivate employees by explaining metrics from the customer's
perception. For example, Larry will walk through the situation as if he were the customer.
This helps him highlight specific points where daily metrics play a key role in the
customer's experience. That way, agents know exactly why you've chosen these criteria to
evaluate.

3. Use personal anecdotes.

When reps are lacking inspiration, a good story can often kickstart their workflow. Larry
endorses this practice as he believes it helps reps understand their value to the company.
By relating their actions to another service experience, you can isolate similar
characteristics that lead to a negative outcome. Through these comparisons, reps will have
a better understanding of what they need to change in order to improve their performance.

4. Tell a story using their daily metrics.

One of the most useful tools a service desk can provide is reporting analytics. By
analyzing your rep's daily metrics, you can see exactly where they're underperforming.
Then, you can supply tips on enhancing performance in this portion of their job.
When reviewing a rep's performance, Larry recommends telling a storying with their daily
metrics. Metrics are often connected to each other and when reps fail to meet one, it's often
related to their performance with another. By looking at the numbers collectively, you'll
obtain a more complete picture of the agent's workflow which makes it easier to find areas
to tweak their behavior and improve the customer experience.

5. Set time-based goals.

If an agent is really struggling to meet their metrics, then it may make sense to implement
a time-based goal. Give the rep a benchmark to achieve within a given period, then
consistently check back in to monitor their progress.
One tip that Larry recommends is narrowing the goal down to one or two key metrics. That
way, the rep can focus on one task and have a better chance of completing it. If you
overload them with goals, the rep will get overwhelmed and there won't be any
improvement.

Q.6. Explain the concept of “Total Reward.” What are the significances of Total
Reward? [2018]
Ans: "Total reward is compensation benefits and careers, encompassing training and
development. Some people join companies because of the career opportunities and some
leave because of the lack of them. Employers should look at balancing compensation
benefits with career movement and development."

Josh Bersin of Bersin by Deloitte defines total rewards as “the critical integration of an

organization’s approach to incenting and rewarding its talent.” In other words, it’s the
integrated system through which you reward and incentivize performance.
Another definition is provided by WorldatWork. They say that the total rewards model is
“the dynamic relationship between employers and employees.”  While that’s a very broad
way of explaining total rewards, it does capture the true essence of what total rewards
systems intend to achieve: a healthy and ongoing connection between your company and
its employees.

A total rewards system comprises all the efforts that an employer can use in recruiting,
motivating and keeping employees. According to the Grameen Foundation, a total
rewards system includes five elements: compensation, benefits, professional
development, recognition and work-life balance.
Significance/Importance/Advantages of Total Reward System:
Simply put, the elements of a total rewards program constitute all the things a business
uses to attract employees, including salary, bonuses, incentive pay, benefits and employee
growth opportunities such as professional development and additional training. This
system provides a number of advantages to companies, particularly small businesses in
which business owners and managers must foster positive personal relationships with
employees. The system works in a cyclical manner consisting of four total parts.

1. Employee Retention
Total rewards systems map out ostensible paths for the entire career of an employee based
on a basic template created by a business for its specific program. When a small business
hires an employee on a total rewards program, the business can show that employee the
points at which bonuses, pay raises, increased vacation or paid sick time and increased
benefits occur during the individual's career trajectory. Such a plan provides immediate
incentive for employee retention by giving an employee a series of long-term projections
and goals. This type of transparency also helps foster a healthy working relationship in
small businesses by putting the managers and employees on equal footing when it comes
to knowledge regarding career trajectories.
2. Employee Performance
Total rewards programs provide direct incentive for employee performance. These
programs present ostensible career trajectories, though employees understand that
certain aspects of these trajectories, including bonuses, only occur if employees meet
certain performance standards. These programs also include aspects such as professional
development, training and performance management that allow employees to develop new
and special skills through education and training, thereby increasing an employee's
knowledge of and ability to perform his job. Total reward systems include methods of
employee performance monitoring for employers that allow employees input and create
dialogue, all of which help foster a relationship of mutual input, which potentially leads to
increased levels of professional respect and understanding.
3. Controllable Expenses
The long-term and complete scope of total rewards programs allows a small business to
create relatively accurate estimates of how much money it spends on each employee over
the course of a number of years. When a business creates a total rewards plan, it possesses
the ability to create a matrix of expenditure that fits not only the finances of the program at
its outset but also within the parameters of the projected growth of the company as it
builds. The cyclical nature of the program, which includes the four steps of design,
execution, evaluation, assessment and back to design, allows for adjustments in
expenditure in keeping with changes in company budget. As a company earns more money,
it can filter more money to employees through raising pay, giving employees the
perception of worth and thus encouraging employee longevity and performance.
4. Program Administration
Total rewards programs provide the advantage of centralized administration in all
employee-related concerns, including benefits, pay and training. For business, and
particularly small businesses, such a system of administration provides the advantage of a
complete system through which to control all of these aspects. In other systems of
compensation and rewards, health care administration occurs separately from pay, while
pay bonuses and raises happen on a different schedule than training and development. In
total rewards, all of these things occur on a single time line and can be overseen
simultaneously.
 5. To Help Employees Feel Valued
If employees think their salaries are their only compensation, they may feel underpaid.
Your employees could feel discouraged. Of course, they aren’t actually underpaid. You’re
spending a lot of money on those hidden aspects of compensation, like health benefits.
Communicating total rewards to employees helps them understand the real value of all the
compensation your company provides. When they learn how much health benefits and
other types of compensation are worth, employees may realize they’re paid much more
than they thought they were. Employees who’d previously felt underpaid could realize
they’re receiving competitive compensation and are valued by your company.
6. To Motivate Employees to Succeed
As a business owner, you offer various types of incentive pay to encourage employees to do
their best work. By communicating total rewards, you can raise awareness of the
performance-based pay that’s available to employees. If employees know what bonuses
and commissions they can potentially earn, they can work harder to earn more.
Total rewards statements can also show employees the value of the incentive pay they’ve
earned in the past. Employees may not keep track of the bonuses and commissions they
earn from one paycheque to another. Seeing the total of the incentive pay in one place can
show employees how hard they’ve worked and encourage them to continue doing what
they’re doing.
There are many good reasons to talk about total rewards with your employees. To
get started, use your human resource information system (HRIS) to create customized total
rewards statements for your employees. Discuss the details of the statements with each
employee, and answer any questions they have.

Q.7. Define Job Evaluation. Distinguish between Formal and Informal Job Evaluation.
Explain analytical job evaluation schemes used in the process. [2018]
Ans: Job evaluation is a generic term covering the systematic methods of determining the
relative worth of a job. In other words, Job Evaluation measures the worth of each job in
terms of money. Job evaluation system came into common use during the World War II.

Every business enterprise should establish a wage policy, which could adequately
compensate the workman in relation to the nature of the job handled by him. That is wages
are to be based on the relative role of each job. The relative role of each job should be
assessed on a scientific basis.
In simple words, job evaluation is the rating of jobs in an organisation. This is the
process of establishing the value or worth of jobs in a job hierarchy. It attempts to compare
the relative intrinsic value or worth of jobs within an organisation. Thus, job evaluation is a
comparative process.
Thus, job evaluation is a method, which aims to provide the basis for ascertaining the
relative worth of each job with reference to the amount of skill and effort required, the
extent of training and experience necessary. This involves the assignment of currency
value to each job.
 Job evaluation is the process of analyzing and assessing various jobs systematically
to ascertain their relative worth in an organization.

Job evaluation is 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 skills required.

Definition of Job Evaluation

Definition of Kimbal and Kimbal
Job evaluation represents an effort to determine the relative value of every job in a plan and
to determine what the fair wage for such a job should be.

Analytical job evaluation schemes used in the process

The methods of job evaluation can broadly be classified as:
1. Non-analytical methods, and
2. Analytical methods.

1. Non-Analytical:
These methods are traditional and simple. They consider all the jobs available, compare
them, and then rank them. In complex organisations, they cannot be used. They can be
used in such cases where the jobs are distinctly different and not similar.
Non-analytical methods of job evaluation are:
i. Ranking method, and
ii. Job classification method.
i. Ranking Method:
Under this method, the jobs in the organisation are arranged either in the ascending or
descending order and numbered serially. The basis of such arrangement could be the job
description in terms of duties, responsibilities, qualifications needed, relative difficulty
involved in doing the job, or value to the company. The job, which carries the highest value
to the company, is paid the most, and vice versa. Similarly, the job that carries critical
duties and responsibilities carries a relatively higher worth.

Evaluation:
Conceptually, this is easy to understand and implement, particularly for a smaller
organisation. However, it fails to indicate the degree of difference between each grade.
Subjectivity cannot be ruled out in the process of ranking. In other words, value is placed
on the people doing those jobs rather than on the job itself. However, this method cannot
be used in larger organisations.

ii. Job Classification Method:

This is also called job-grading method. Here, the number of grades and the salary
particulars for each grade are worked out first. The grades are clearly described in terms of
knowledge, skill, and so on. Then the jobs in the organisation are allocated to these grades
as per the job description and grades identified.

Evaluation:
This is relatively simple to understand and easy to carry out. It is totally based on the
number of grades and salary particulars for each grade worked out first. It may not be
possible to make clear distinctions between jobs. In a complex organisation with a wide
variety of specialist roles, it is very difficult to implement this method.

2. Analytical:
Under these methods, the jobs are broken down into different tasks. Different factors such
as – skill, responsibility, education level, and so on, are assessed for each job. The
comparison of factor by factor, sometimes, allocating points or monetary sums for each
factor is made for meaningful interpretation.
There are two types of analytical methods:
i. Factor comparison method, and
ii. Points rating method.
i. Factor Comparison Method:
Every job requires certain capabilities on the part of the person who does the job.

These capabilities are considered as critical factors, which can be grouped as listed
below:
a. Mental requirements (education, alertness, judgment, initiative, creativity, ingenuity,
versatility)
b. Skill requirements (use of equipment and materials, dexterity, precision)
c. Physical requirements (strength, endurance)
d. Responsibility (for the safety of others; for equipment, materials, processes; cost of
error; extent of supervision exercised)
e. Working conditions (work pressure, accident hazard, and environment).

The factor comparison method consists of six well-defined steps:

(a) Identify the key jobs.
(b) Rank the key job, factor by factor.
(c) Apportion the salary among each factor and rank the key jobs.
(d) Compare factor ranking of each job with its monetary ranking.
(e) Develop a monetary comparison scale.
(f) Evaluate non-key jobs based on the monetary comparison scale.
The principal of a college is paid a higher salary than the lecturer in view of several factors,
one of which is higher responsibility. Considering other factors also, weightage (in terms of
money) is given to each factor and the total weight and the monetary value is taken. This
provides a basis for arranging the jobs in relation to their relative worth.
Evaluation:
It provides a better basis for assessing the relative worth of each job when compared to the
non-analytical methods. The list of factors is not a standard one. It can be changed as per
the specific needs of the organisation. Non-key jobs are evaluated on the basis of monetary
comparison scale.
It is difficult to comprehend, and hence, may be difficult to explain to the employees.
Periodic adjustment of salary rates may lead to the development of inequities in the
organisation’s salary structure. Inequities in salary rates of key jobs will further affect the
non-key jobs in terms of their evaluated worth. The list of requirements is very critical.
Any lapse in identifying any of the factors or its weightage appropriately may affect very
badly the validity of the entire exercise.

ii. Point-Rating Method:

There are four widely accepted factors used in the point-rating method – skill, effort,
responsibility, and job conditions. Each of these factors is divided into sub-factors!
a. Skill:
(i) Education and job knowledge
(ii) Experience and training
(iii) Initiative and ingenuity
b. Efforts:
(i) Physical dexterity (skills) Effort
(ii) Physical effort
(iii) Mental and/or visual effort
c. Responsibility:
(i) Tools and equipment
(ii) Materials or products
(iii) Safety of staff
(iv) Others’ work
d. Job Conditions:
(i) Working conditions
(ii) Unavoidable hazards
(iii) Immediate surroundings.
In the above list, skill is a factor and it has four sub-factors. Like this, each of these factors
is further subdivided into sub-factors. Depending upon the complexity involved, each sub-
factor is assigned a degree and points.
Once a factor is evaluated in accordance with its degree and points, the points
attained for each factor are added up to obtain a score for the job. Based on this score, the
jobs are ranked from the lowest to the highest or the other way.
If two jobs obtain equal score, that indicates that both jobs are equal in every respect, and
hence, should be given equal wages also. The number of jobs may cluster around certain
groups of scores. This can simplify the process of allocating wage grades.
Evaluation:
It is difficult to develop factors, sub-factors, degrees, and points. Working out a point scale
and selecting degrees are not simple jobs. They are complex in nature, and hence, involve a
lot of time and skill. Allocation of points among sub-factors may appear to be arbitrary
than realistic and scientific.
However, this is more rational because factors, sub-factors, degrees, and points are
identified in an objective manner. In other words, it is less subjective. It provides
consistent results. It is standardised to such an extent that it offers no scope for
manipulations. Salary increases do not affect the basic system of grouping. The system is
flexible to cater to the varying requirements of the organisations.