HRM Syllabus

Unit 1

 Human Resource Management:

o Concept
o The process of acquiring, training, appraising and compensating employees
and of attending to their labor relations, safety, health and fairness concerns.

Functions; (Helps in maintaining competitive advantage)

o HR Planning: It assesses the human resources needs of the organization so as

to provide a competent and stable work force. The planning involves
evaluating the skills of employees and external labor market, of current and
expected job openings of plans for reducing or expanding or reducing the
workforce throughout the organization etc.
o Recruitment: It involves recruiting the best employees. Brand’s image and
reputation matters a lot to pull in most qualified and suitable employees for the
organization.
o Performance Management: It is done to ensure that workers remain
productive. It includes sound leadership, clear goal setting and welcoming
feedback. Also includes 360 degrees feedback of employees from peers,
manager, directors etc to provide a wholesome feedback for their
performance.
o Rewards and Recognitions: Best Employee of the month is one of the
measures to make them feel belonged in an organization. They are able to
commit themselves fully towards the organization.
o Fair Compensation: Compensation refers to the wages and salaries given to
the employees. It should be fair for men and women and for the employees
working at same level in the organization. Inequality should be strictly
prohibited.
o Collective Bargaining: It leads to a labor contract with the employer where
both employees and the employer negotiate on terms such as wages, working
hours, benefits, insurance schemes etc.
o Career Planning: Employees need career growth and a good opportunity to
learn in their life. As such, HR managers should guide them towards their
career path.
o Information sharing: HR Managers should convey information to employees
for every decision that affects them. For example: hiring or layoff of workers,
mergers or acquisitions, safety procedures etc.
o Performance appraisal and review: Annual employee review is necessary to
know whether employees are facing any problem in the organization in
relation to their skills. As such, more training can be given to weak employees.
 It tells whether the existing recruitment, selection and incentive scheme
worked effectively or not.
o Employee benefits and services: It focuses on providing non-monetary
incentives like paid vacation, accident and insurance schemes, recreation,
housing and medical facilities etc. These exist regardless of the performance
of the employees.
o

HRD-definition,

o continuous process of development of employee competencies, motivation,

dynamism and effectiveness in a systematic and planned manner.

Goals

1. Provides efficient utilization of people’s skills and abilities: HRM aims at utilizing
peoples skills and abilities in order to achieves goals of the organization as well as
people. It ensures that the manpower of the people is efficiently utilized in the
organization.
2. Communicating HR policies to all concerned: It aims at communicating policies to
all the people in the firm so that everyone knows what their goals and objectives are.
Good communication ensures healthy relationship with the employees as well. With
clarity in operations, it aims at maximizing employee’s productivity.
3. Increased Job Satisfaction: HRM aims at increasing job satisfaction for employees
so that they remain committed to achieving the goals of the organization.
4. Providing trained and motivated employees: HRM ensures that well-trained and
motivated employees are provided to the firm which is in fact a firm’s valuable asset.
Training modules are developed for employees to upskill them continuously to keep
them up to date with latest technologies. This also motivates the employees by
providing them an incentive for growth in their career.
5. Providing quality of work life to employees: Employees demand good work culture
in the organization. HR policies are developed to create an environment which is
conducive to the safety, recognition, health, belongingness, development of
employees. Rewards and benefits like promotion, hike in salary etc works well.
Ensuring that employees contributions are being noticed and recognized in the
organization.

o challenges; (Same as how environment of HRM is changing)

o The changing environment of HRM

 globalization,
 It refers to the extension of company’s sales, operations,
manufacturing etc to new markets abroad.
 Invites more competition and more need to be world class. Hence,
managers need top class employees who are efficient and effective in
managing operations of the firm.
 They locate their operations in those countries where the labor is cheap
for obtaining greater efficiencies.
 However, managing the people aspect is difficult for HR managers
when they try to expand around the globe. The HR policies of that
nation matters a lot. Moreover, whether the people are welcoming for
the company or not matters.
 Indian IT companies made a good amount of profit when they sent
their employees to US for temporary basis but such employees are
believed to displace Americans from their US jobs. Hence, stricter
H1B visa policies are being implemented in US which can be backlash
for the HRM of IT companies.

 cultural environment,
 MNCs are hiring nationals from the country where they are operating
to get a ready supply of workforce who are well versed with the
country’s culture, customs and tradition. As such, MNCs are able to
note the differences that might exist between their cultures.
 Managers must be trained to be flexible in their practices of work
schedules, customs etc as employees will be coming from different
backgrounds. They must learn to recognize and celebrate such
differences.
 Such training will be helpful in making them change the way they
think about people.

 technological advances,
 Using social media tools like FB, Insta and LinkedIn to recruit new
employees instead of recruiting them through employment agencies
 Using mobile apps to know employee location and to provide digital
photos at the facility clock-in location to identify workers
 Using gamification procedures to make recruitment and training fun
and productive.
 Cloud computing to monitor employee goal attainment and provide
real time evaluative feedback
 Data analytics where using statistical tools HR managers can know
the ideal traits of their employees, when are they likely to leave the job
etc.

 workforce diversity,
 Concerned with the similarities and differences of demographic
characteristics such as age, gender, ethnicity, sexual orientation etc
among the employees of the organization
 2 dimensions:
 Primary: core elements of a population which can’t be
changed: age, gender, sexual orientation. The more the number
 of primary differences, the more the lack of trust and respect
amongst the employees.
 Secondary: can be changed or at least modified. Additional
layer of complexity to the way we see ourselves and others.
 Advantages:
 Cater to different customers belonging to diverse backgrounds
 Build’s firm’s reputation
 Able to incorporate best strategies of a nation into their own
company
 Will do better in retaining the best employees in the company
due to workforce diversity
 Will solve the conflicts coming from opposing viewpoints into
more complete and innovative solutions.
 Disadvantages:
 Mistrust
 Lack of communication
 Discrimination
 Resistance to change
 Management of Diversity
 Commitment of top employees
 Diversity training programs
 Diversity monitoring mechanisms
 Creation of support group
 Change of employment policies
 Reasons for growing interest in diversity
 Mergers and acquisitions
 Growth of service economy
 Legal requirements
 Globalization of markets
 Consequences for ignoring diversity
 Lower employee motivation and productivity
 Employee absenteeism high
 Higher attrition rate
 Discriminatory practices can further lead to bad reputation of
the firm

 corporate downsizing,
 Reducing the size of the organization to cut costs and remove
unprofitable operations to achieve operational efficiency.
 Jobs are redesigned to merge duplicate operations and remove
redundant tasks
 When it becomes necessary?
 Change in man-machine ratio due to technological advances
 Overstaffing due to faulty HR policies
 Outsourcing of business activities and operations
 Redesigning of jobs may render some people surplus
 Alternative to dealing with overstaffing and separation?
 Transfer and reassignment of surplus employees
  VRS : organization and employee enter into a an agreement
where the employee voluntarily retires on payment of agreed
compensation by the employer.
 Freezing employment after attrition

 changing skill requirement,

 Today, economy is essentially driven by service, as manufacturing jobs
have been replaced by efficient machines or sent overseas, to be done
by low-cost labor. To correct this functional illiteracy, the business
organizations and government agencies together have to make plans
for providing remedial education

 HRM support for improvement programs,

 HR managers need to provide employees with necessary training and
development programs and modules to ignite a spirit of career
development, growth and curate a good learning experience for them.
 Acting as a guide and providing employees with flexible learning
opportunities through both in-house and remote learning helps us a lot.

 Work life balance.

 Proper prioritizing between work on one hand and life on other.
 Lack of clarity of boundaries between the two creates stress, anxiety,
depression, obesity etc amongst the employees further leading to
reduced productivity, increased absenteeism and higher attrition rate.
 HR solutions:
 On the job training
 Survey of employees work/life issues
 Set priorities for all work
 Train line managers to see signs of overwork
 Seminars on work/life balance
 Flexible work requirements
 Flextime
 Job sharing
 Sponsoring employees’ family oriented activities
 Allow for time off from work
 Paid maternal/paternal leave
 Benefits
 Productivity
 Morale
 Retention rate
 Health
 Good employer-employee relationship
Unit 2

Human Resource Planning:

 It is a process by which an organization should move from its current manpower

position to its desired manpower position.
 Through planning, the management strives to have the right number and right kind of
people at the right places at the right time, doing things which result in organization
and individual receiving maximum long run benefit.
 Objectives:
o To recruit and retain human resources required in quantity and quality
o To foresee the employee turnover and make arrangements for minimizing the
turnover and filling up consequent vacancies
o To meet the needs of programmed expansion and diversification
o To foresee the impact of technology on work, existing employees and future
human resource requirements
o To improve the standards, skill, knowledge, ability and discipline
o To assess the surplus and shortage of human resource and take measures
accordingly
o To maintain congenial industrial relations by maintaining optimum level and
structure of human resource
o To minimize the imbalance due to non-availability of human resource
o To make the best use of human resource and estimate the cost of human
resource

o Process,
o Determination of objectives of HR Planning
 To provide right number and right kind of people at the right place and
at the right time to maximum long run benefit for both individual and
organisation
o Preparation of Skill Inventories
 Assess the current skills of existing workforce on the organisation
  Complex for supervisory and managerial level employees. Right kind
of people aren’t available at such short notice.
 Assess their skills, strengths and weakness.
 Assess what type of skills are required to learn in future
o Demand forecasting
 Factors affecting:
 Employment trends: HR managers at top levels should see the
number of employees on payroll during the last 5 years to see
how employees group. Helps in knowing whether a particular
group is stable or unstable and if it has expanded or contracted.
 Replacement needs: The need of replacement arises on death,
resignation, transfer or termination of employee. Examination
can be done for specific groups like skilled, unskilled,
supervisory etc. Complex for managerial positions as
management development cycle take a long time. So, should be
done sufficiently in advance.
 Productivity changes: Gain in productivity adds to growth
potential of organisation and a possible increase in wages. It
also reduces the requirement of human resources.
 Absenteeism: Prevailing rate should be considered. Formula:
Absenteeism = Mandays Lost/ Mandays worked + Mandays
lost. Unduly high rate should be taken care of.
 Growth and expansion: If the expansion plan is accurate, so
will be the HR planning and need assessments for new or
existing categories of jobs.
o Supply forecasting
 2 sources of supply - Internal and External
 Internal is preferred where employees working currently in the
organization are transferred or promoted to fill the jobs as and when
they fall vacant.
 Requires assessing current skills of employees to see their suitability
for the job.
 Need to conduct 2 things in advance:
 HR audit: Systematic HR audit would lead to preparation of
skill inventories. It would give a thorough idea of capabilities
and potential of persons working in the organization. It would
also point out the types of skills that need to be acquired or
developed for future.
 Replacement charts: meant for listing each key position and
indicating time when it is likely to be vacated. They also list the
most likely candidates working in the organization suitable to
fill vacancies and also the time when they would be ready for
promotion. In short, a replacement chart presents clearly who
will replace whom in case of vacancy.
o Gap Analysis
 Compare demand and supply and see if there is surplus or deficit of
workforce. Deficit requires personnel to be recruited from outside.
Surplus requires the redundant to be redeployed or given VRS.
  Similarly, gaps may occur in terms of knowledge, skills and aptitudes.
Employees found to be deficient can be trained whereas employees
with higher skills may be given more enriched jobs.
o Redeployment and Retrenchment programs
 Redeployment:
 Transfer of personnel from the departments with surplus to the
ones with shortage of workforce.
 Employment in sister concerns.
 Launching of ad hoc projects to accommodate surplus staff
 Provide training to surplus personnel and offer them out-
placement services.
 Retrenchment:
 VRS/ golden handshake: organization and employee enter
into an agreement where the employee voluntarily retires on
payment of agreed compensation by the employer. followed by
government PSUs a lot.
 Compulsory retirement/ Iron handshake: management
identifies surplus employees and discharges them from the
service. Management does not provide any cash or non-cash
benefits to the employees other than normal retirement benefits
at the time of discharging or firing.
 Job freeze: Hiring freeze or ban on employment can be done to
prevent overstaffing
 Lay offs: Temporary layoff is due to the slackness in business,
machinery breakdown, power failure, etc. Workers are called
back as soon as work resumes to the normal position.
Permanent layoff is due to liquidation of the company.
o Chalking out Employment Plan:
 To determine how the organization can obtain the quality and quantity
of human resources required to meet the objectives as reflected by the
personnel forecast.
 Long-term employment program must be chalked out to meet the
forecast deficits of human resource in the coming years.
o Training and Development program:
 The operative employees must be given appropriate training so that
they may learn the required skills.
 Appropriate development programs should also be designed for the
present and the would be executives so that the required talents could
be developed.

o Forecasting demand & supply,

o Uses of HRP
o Assess future supply and demand forecasts
o Strategic Planning incorporate
o Identifies required skills to be imparted through preparation of skill inventory
o Explains well in advance who will replace whom in case a vacancy turns up
through replacement charts
o Cut costs: reduces overstaffing
 o Factors affecting demand and supply of HR
o Supply Factors:
 Population density within reach of the company
 Current and future competition of labor from other employers
 Local unemployment levels
 Output from local educational system
 Attractiveness of the area as a place to live
 Pattern of immigration and emigration with the area
 Work culture of organization
 Infrastructural facilities like housing, shopping and transportation
facilities where workplace is located.

o Skill inventories,

o Succession planning;
o Assess management needs based on strategic planning factors
o For example:
 Expansion: additional HR of existing categories
 Diversification: additional HR of different categories
 Downsizing: VRS and retrenchment
 Mergers and acquisitions: Reduction in HR of managerial positions

o Human Resource Information System (HRIS);

o System designed to supply information for effective management of human
resources in the organization.
o A computerized HRIS is designed to monitor, control and influence the
movement of people in the organization from the time they join it till the time
they leave it.
o Types of Information it contains:
 Job Analysis and Design: since individuals are employed for various
jobs, HRIS contains info for every job before and after job analysis and
redesign
 Recruitment: Advertisement module, each applicant’s profile, data,
appointment and placement
 Training: training course materials, appraisal for training programs
 Payroll: wages, incentives, fringe benefits, allowances
 Maintenance: health, safety and welfare of employees

 Job analysis –

 identification of all the tasks to be performed within a job, assessing the required
skills and knowledge necessary to perform the tasks and the conditions under which
they must be performed.

o Uses,
o Recruitment and selection
  A comprehensive job analysis provides sufficient information in
respect of jobs that will most likely to be filled up in future. Selection
of a person for a job necessitates the deep and clear understanding of
the kind of work to be performed and the qualifications, knowledge,
talent and potentials required to do it.
 Job analysis provides all required information facilitating smooth
conduct of recruitment and selection.
o Compensation
 The information collected under job analysis can be used for
determining wages and salaries of the incumbents. Salaries are to be
fixed on the principle “equal pay for equal work”. It is also to be noted
while fixing salaries that the jobs of comparable worth receive same
pay.
o Training
 From job requirements, manager comes to know about the deficiencies
in the jobholders. He then decides to provide training to the
incumbents.
o Performance appraisal
 When managers conduct annual employee appraisals, they take JD as a
base where they compare their performance to what was expected from
them. If any subpar performance is observed, the managers try to find
employee weaknesses and give them training. More skilled employees
are further given more enriched jobs.
o Discovery of unassigned duties
 Since each job is described thoroughly and is appointed to a person,
the HR manager comes to know of the jobs which are unassigned and
needs to be appointed to somebody. Accordingly, JD is drafted and
recruitment and selection process starts.

o Contents of Job description

o A job description is a written statement of what the jobholder does, how the
job is done, under what conditions, the essential functions, how the work is to
be completed, what the purpose of the work is, and how it relates to the
organizational mission.
o Contents:
 Job identification: job title, part time/full time, department location of
the job, whom will the person report to, the date the description was
last revised and salary/pay grade.
 Job Summary: outline of the job responsibilities and how it relates to
other positions and the organizational mission.
 Responsibilities and duties:
 Essential functions with a detailed list of tasks, duties, and
responsibilities an employee absolutely must be able to perform
to successfully fill a position. An accurate list is important to
avoid hiring decisions that may seem inconsistent, unfair, or
discriminatory. The activities are core to performing the job
and cannot be modified. If specific skills or abilities are
necessary, they must be included.
 Authority of the incumbent: If the position is responsible for
supervising others, those responsibilities will be listed here.
  Performance Standards and working conditions:
 It lists the standards the company expects the employee to
achieve for job description’s main duties and responsibilities.
 The job may also list down working conditions like noise level,
hazardous conditions or heat.
 Job Specification: It states the minimal acceptable qualification and
other traits that an incumbent must possess to perform the job
successfully. Based on the information acquired through job analysis,
the job specifications identify the knowledge, skills, education,
experience, certification, and abilities needed to do the job effectively.

o Contents of Job specifications

o Educational qualification: It gives an insight into how qualified a certain
individual is. It covers their basic school education, graduation, master’s
degree, other certifications etc
o Technical skills: The higher the position in a company, the more niche the
skills become and more is the knowledge required to perform the job.
o Experience: It includes work experience which can be from a specific
industry, position, duration or in a particular domain. An experienced
employee will be preferable in comparison to the fresh candidate.
o Personality traits: The way in which a person behaves in a particular
situation handles complex problems, generic behavior etc are all covered in
the characteristics of a job description. It also covers the EQ of a person.

 Recruitment:

 Process of searching prospective employees, stimulating them to apply for the jobs in
the organization.

o internal sources
o Transfer: It means shifting an employee from one job to another having
similar status and responsibilities. Transfers are done to fill vacancies with
employees from overstaffed departments. It is the horizontal shift of an
employee.
o Promotion: It is the transfer of an employee to a job that carries higher pay,
status, responsibilities, benefits and greater potential. It is the vertical shift of
an employee.

o external sources,
o Direct Recruitment: Many unskilled persons often contact the employment
section of various enterprises to ascertain if they could be employed. Many
firms follow the practice of recruitment at factory gate to fill casual vacancies.
This method is very useful for recruiting unskilled workers for a temporary
period.
o Casual callers: In case of reputed organisations, many qualified people apply
for employment on their own initiative. Such people are known as unsolicited
applicants or casual callers. They serve as a good source of manpower. A
 proper file may be kept of such applications and the candidates may be called
whenever the need arises.
o Advertising: Popular practice with the large companies particularly when the
vacancy is for a higher post or when there are a large number of vacancies.
This helps in approaching the candidates spread over different parts of the
country. Only the candidates who think themselves to be suitable may apply
only.
o Employment Exchanges: There is a network of employment exchanges in the
country run by the Government which has also made it compulsory for the
employers to fill some vacancies through the employment exchange.
o Placement Agencies/Management Consultants: Professional bodies have
come into existence which provide their services to the enterprises for
recruitment and selection of employees. They mostly provide services for
recruiting and selecting top level employees.
o Campus Recruitment: Colleges have become a popular source of recruitment
for technical,

 professional and managerial jobs. Many big organizations maintain a close liaison
with the universities, vocational and management institutes to recruit qualified
personnel for various jobs.

o Recommendation: These are the applicants introduced by present employees

or their relatives and friends. Such applicants are likely to be good employees
because their background is sufficiently known.

o Merits and Demerits of Internal and External Selection

o Merits of Internal Sources:

 Higher motivation among employees to improve their performance.
 Economical as compared to external sources of recruitment.
 No need of induction training.
 Reliable source as the firm already knows the employees.
 Ensures better utilization of manpower by balancing staff shortage and
surplus.
o Demerits of Internal Sources:
 Scope for fresh talent is reduced.
 Employees may become lethargic if they are sure of time bound
promotions.
 Not suitable for a new enterprise
 May lead to unhealthy competition among employees
 Frequent transfers reduces overall productivity among employees.
o Merits of External Sources:
 Attract qualified and trained personnel
 Wider choice as firm as large number of applicants to choose from
 Fresh talent is brought to firm
 Competitive spirit amongst existing employees to show better
performance than new personnel.
o Demerits of External Sources:
  Dissatisfaction among the existing staff. They may feel their chances
of promotion may get reduced.
 Lengthy process
 Costly process

 Selection

#Recruitment Vs Selection

o Process,

o Preliminary Screening: It helps the managers eliminate unfit job seekers

based on the information provided in the application forms.
o Selection Tests: Employment test is a mechanism used to measure certain
characteristics of the candidates like aptitudes, intelligence, personality etc.
Tests are:
 Intelligence Test: ability to learn, ability to make judgements and
decisions. IQ tests measuring vocabulary, verbal fluency and numerical
ability.
 Aptitude Test: ability to learn new skills. Score of a person’s future
success.
 Cognitive Test: mental and intellectual aptitudes
 Motor test: measures manual dexterity, hand-eye coordination
  Personality Test: provides clues about person’s emotions, reactions,
maturity. Difficult to design and implement. Using projective
techniques, self-reported tests.
 Proficiency test: measure skills already acquired by the individual.
 Interest Test: identify patterns of interests in which individual shows
special involvement.
o Employment interview: a formal in depth conversation conducted to see the
applicant’s suitability for the job.
o Reference and Background Checks: Many employers requests names,
addresses, and telephone numbers of the references for the purpose of
verifying information and gain additional information about the applicant.
Previous employers, teachers and university professors can act as references.
o Selection decision: The final decision is to be made whether to hire the
candidate or not. The decision of concerned manager is considered final
because he/she will be the ones to look after the performance of the employee
o Medical Examination: The candidate is requested to undergo a medical
fitness test. He/she is given the job offer once he/she is declared fit.
o Job Offer: The selected candidate is given a letter of appointment. A date is
given on the letter by which the appointee must report on duty. He/she should
be given reasonable time for reporting.
o Employment contract: A contract containing details like job title, duties, pay
rates, grievance procedures etc has to be signed by both the employer and the
employee.

o Tests in selection,

o concept of reliability and

o Reliability of a selection process sees if the chosen method provides consistent

results or not. It is used to reduce the error of measurement as much as
possible. Tested using test-retest approach
o Test-retest reliability is a measure of reliability obtained by administering the
same test twice over a period of time to a group of individuals. The scores
from Time 1 and Time 2 can then be correlated in order to evaluate the test for
stability over time.

o validity in selection;
 Orientation:

o Concept
o Orientation is a process of helping a new employee to adapt to their
organisation and work responsibilities.
o Socialisation—frequently called “on boarding”—refers to the process of
helping employees to adapt to a new job and new organisational culture.
o Purpose:
 Make new employees feel welcome, at home and a part of the team
 Give them basic information they need to function properly. For
example: location of photocopier machine, canteen, washroom etc
 Help them understand organisation in a broad sense. telling them about
values, culture, present, past strategy of the firm
 Start socialising person into the firm’s culture and the way of doing
things.

o process
o Pre arrival stage:
 It explicitly recognises that each individual has come to the firm with a
set of organisational values, attitudes and expectations.
 Once the candidate is selected, the manager can not sit back until the
day he/she arrives on the first day of the job
 They need to maintain contact with them to make them feel welcome
and keep their interest in the organisation
 Ways to make contact with them include sending small welcome gifts
or backpacks with company logo on it, inviting them for lunch, giving
a tour of new employer’s facilities along with other hires, establishing
contact with a mentor that can answer questions and teach new
employees about the company culture.
o Encounter stage:
  Here the employees encounter a possible dichotomy between their
organizational expectations and the reality
 If expectations wee more or less accurate, the encounter merely
reaffirms the perceptions generated earlier.
 However, if there is a big difference between the expectation and
reality, employees must be socialised in order to detach them from
their previous assumptions and make them comfortable with the firm’s
pivotal standards.
 Realistic job previews and education about firm’s vision and mission
can reduce this.
o Metamorphosis stage:
 It is a stage where new employees must work out inconsistencies
discovered in the encounter stage.
 This stage is complete when:
 employees are accepting firm’s standards and norms
 taking part with coworkers and teams
 know how they will evaluated during appraisals

o Problems

 Contents of Orientation

1. Brief history of the organisation.

2. Organisational mission, vision, objectives and philosophies.
3. Policies and procedures of the organisation.
4. Rules and regulation of the organisation.
5. Organisational structure and authority relationship.
6. Terms and conditions of job including remuneration, working hours, holidays, promotional
avenues, etc.
7. Welfare measures like subsidised canteen, transport, health and recreation facilities, etc.
8. Safety measures.
Guidelines for Effective Induction

1. Supervisors should be given adequate training to conduct induction training for the
new employees. It should be taken up as a special duty.
2. It should be a gradual process. New employees should not be overloaded with too
much information.
3. Human connection is important. First if all, new employees should be introduced to
the people with whom he/she will be working with. A tea party can also be arranged
for this purpose.
4. The new employee should be informed about the rules and regulation specific to
organization, his job requirements ad work situation.
5. Orientation should be thoroughly planned and the person conducting it should give
due attention to the specific problems faced by the new employees.
Unit 3

Training:

o Concept,
o Training is the act of increasing the knowledge and the skills of an employee
for doing a particular job.

o Training Process,
o Need Assessment Stage: The aim of the assessment stage is to understand
whether or not training is required. If the answer is yes; the next step is
determining competency or skills gaps and the appropriate training
intervention required. The training intervention is essentially decided in terms
of attitude, knowledge and skill (ASK), the combination of which is called as
competency.
o Program Design Stage: This stage involves the development of content and
the training material. Right from designing the appropriate environment to
deciding the various tools, everything is taken care of in the development
stage. Games, A/V’s, Case Studies, Class room intervention are various means
that may be decided upon apart from the content delivered. For example, in
behavioural training emotional intelligence, teamwork, listening are examples
of competencies that are required to perform superior work. The same may be
transferred into the trainees through any of the above means depending upon
various factors like demographics, job nature etc which are taken care of in the
first stage.
o Implementation Stage: The most important stage and perhaps the least talked
upon from the training process is the delivery. Once the development stage is
over it is time to conduct the training. Factors like time and venue of delivery
are already decided in the earlier stages. There are various factors that
determine the process of delivery like the participant demographics, the
training intervention, the individual style of the trainer etc. This brings in a lot
of diversity to the training programs.
o Evaluation Stage: It is aimed at analysing whether or not the training has
been effective in achieving the objective (bridging the competency gap,
changing the attitude, developing new skills etc). The evaluation is made on
the basis of participant reaction to the training, their learning and the change in
behaviour. This feedback is then reused in the first step ‘training needs
analysis’ for making future training more effective.

o Methods of training;
o On the Job Methods: applied to the workplace while employees are actually
working
 Apprenticeship Program: These are designed to acquire higher level
of skill. People seeking to enter skilled jobs like plumber, electrician.
 These apprentices are trainees who spend a prescribed amount of time
with the experienced guide or trainer.
 Coaching: The superior acts as a coach to the trainee. He sets upon
mutually agreed goals, suggests how to achieve these goals,
periodically reviews the trainees progress and suggest changes required
in behavior and performance.
 Internship Training: It’s a joint program of training in which
educational institutes and business firms cooperate. Students carry on
their regular studies for the prescribed period. At the same time, they
work in some factory or office to acquire practical knowledge and
skills.
 Job Rotation: Here, the trainee is shifted from one department to
another, from one job to another. He gains broader understanding of
various functions and how firm functions as a whole.
o Off the job Methods: Used away from the workplace
 Class room Lectures/Conferences: Lectures are used to convey
formal information like rules and procedures. Audio visuals can make
these more interesting.
 Case Study: Taken from actual experiences of the firm, cases attempt
to represent the real life problems managers have faced. Trainees study
the cases to determine problems, analyse causes, develop alternative
solutions, see what can be the best solution and implement it.
 Vestibule Training: Actual work requirements are created in a
classroom and employees use the same materials, files and equipments.
It is done when employees have to handle sophisticated machinery.
 Programmed Instruction: Information is broken down into units and
these units are arranged in a proper way to form a logical and
sequential learning package i.e. from simple to complex. The trainee
goes through these units by answering questions or filling the blanks.
 Role Playing: Trainee act out parts in a realistic management
situation. To develop trainee’s leadership and delegation skills.

o Management Assessment Centers

o A management assessment center is a series of tests, interviews, simulations,
and exercises designed to predict how well a management candidate will
perform in a specific role.
o Tests measure planning, interpersonal skills, communication, job knowledge,
leadership, situational judgement, intelligence etc.
o They can be conducted at an outside facility, or in in-house centers or virtually
through video calls.

 Management development:

o Concept &
o Management development is a systematic process of growth and development
by which employees develop their abilities to manage.

o Methods;
 o On the Job:
 Coaching
 Job Rotation
 Understudy: An ‘understudy’ is a person who is under training to
assume, at a future time, the duties and responsibilities of the position
currently held by his superior. In this way, it is ensured that a fully
trained person is available to replace a manager during his long
absence or illness, or on his retirement, transfer or promotion.
 An understudy may be picked up by a manager from amongst a
large number of subordinates, or several individuals. Such an
understudy is generally assigned a project which is closely
related to the work in his section. He is deputed to attend
executive meetings as a representative of his superior, at which
he makes a presentation and proposals.
 Multiple Management: It is a technique whereby juniors are assigned
to Board or Committees, by the chief executive. They are asked to
participate in deliberations of these Board and Committees. In these
sessions, real- life actual problems are discussed, different views are
debated and decisions are taken. The juniors get an opportunity to
share in managerial decision-making, to learn by watching others and
to delve into specific organisational problems.
o Off the job:
 Case Study
 Role Playing
 Conferences/Lectures
 In-basket Method: Each team of the trainees is given a file of
correspondence bearing on a functional area of management. Each
individual studies the file and makes his own recommendations on the
situation. If further information is required by him, it is supplied by the
members of the team later. The observations of each individual
member are compared and conclusions on different functional areas
are reached; and these are put down in the form of a report.
 Business games: Business games are classroom simulation exercises
in which teams of individuals compete against one another or against
an environment in order to achieve a given objective. These games are
designed to be representative of real-life conditions. Most business
games are expressed in the form of a mathematical model controlled
and manipulated by an electric computer; while others can be played
manually.
 Sensitivity Training: Group experience designed to provide
maximum possible opportunity for the individuals to expose their
behaviour, give and receive feedback, experiment with new behaviour
and develop awareness of self and of others.

 Performance Management System:

o concept,
 Performance management is a process that unites the goal setting, performance
appraisal and development into a single common system whose aim is to ensure that
employees’ performance is supporting the strategic aim of the organisation.

o uses of performance appraisal,

o Employers decide pay, promotion and retention decisions on the basis of

employee appraisals.
o To ensure employees’ performance is supporting the strategic aim of the
organisation
o To let managers develop a plan for correcting any deficiencies and reinforce
subordinate’s strengths.
o To review employee’s career plan by shedding a light on his strengths and
weaknesses.
o To see if there is any training needs so that remedial action can be taken
accordingly.

o performance appraisal methods,

 Traditional Methods
 Graphic Rating Scale: It is also known as linear rating scale. In this
method, the printed appraisal form is used to appraise each employee.
The form lists traits (such as quality and reliability) and a range of job
performance characteristics (from unsatisfactory to outstanding) for
each trait. The rating is done on the basis of 5 point scale on the
continuum. The rater rates each appraisee by checking the score that
best describes his or her performance for each trait. All assigned values
for the traits are then totaled.
 Alternation ranking method: employee is compared with all others
for the purpose of placing order of worth. The employees are ranked
from the highest to the lowest or from the best to the worst.
 Paired Comparison method: In this method, each employee is
compared with other employees on one- on one basis, usually based on
one trait only. The rater is provided with a bunch of slips each coining
pair of names, the rater puts a tick mark against the employee whom he
considers the better of the two. The number of times this employee is
compared as better with others determines his or her final ranking.
 Forced Distribution method: It is done to eliminate the central
tendency of rating most of the employees at a higher end of the scale.
Here, employees are ranked against one another rather than
performance standards. The method assumes that employees’
performance level confirms to a normal distribution. It tends to
eliminate or reduce bias.
 Critical Incident method: The rater focuses his or her attention on
those key or critical behaviors that make the difference between
performing a job in a noteworthy manner (effectively or ineffectively).
A list of noteworthy (good or bad) on-the-job behavior of specific
 incidents is prepared. A group of experts then assigns weightage or
score to these incidents, depending upon their degree of desirability to
perform a job. Finally a check-list indicating incidents that describe
workers as “good” or “bad” is constructed. Then, the check-list is
given to the rater for evaluating the workers.

 Modern Methods
 Behaviorally anchored rating scale: Critical incidents of effective
and ineffective performance on the job are written. Jobholders cluster
the incidents into 5 or 10 performance dimensions. To verify the
grouping, another team also reallocate original critical incidents to the
cluster they think it fits best. Retain a critical incident if most of the
second team assigns it to the same cluster as did the first. The second
group rates the behavior described by the incident as to how effectively
or ineffectively it represents performance on that dimension. Finally
choose about 6 or 7 of incidents as dimension’s behavioral anchors.

 Example:

 https://www.omnesgroup.com/behaviourally-anchored-scale/

 360 degrees feedback: Ratings are collected from all persons around
an employee, including the boss, supervisors, subordinates, peers and
internal and external customers.

o factors that distort appraisal;

o Unclear Standards: An appraisal that is too open to interpretation. Can result

in unfair appraisals.
 How to solve: use descriptive phrases to describe the traits against
which employee is being reviewed to clearly defined the performance
level standards
o Halo effect: Problem occurs when a supervisor’s rating for an employee on
one trait biases the rating of that person on other traits.
 How to solve: Using BARS Method
o Central Tendency: A tendency to rate all employees the same way, such as
rating them all average.
 How to solve: Ranking employees instead of graphic rating scale
method
o Strictness/Leniency: When supervisor has tendency to rate all employees
either high or low.
 How to solve: Recommend supervisors to avoid giving high or low
scores to all
o Recency: letting what employees has recently done blind you to what his/her
performance has been all year long.
 How to solve: Critical Incident method
 Career planning:

o Concept
o deliberate process through which a person become aware of personal skills,
interests, knowledge, motivation and establishes action plan to attain specific
goals.
o Importance
i. IT CAN HELP YOU CHOOSE A CAREER:

 The process of career planning involves identifying your strengths and

researching fields that you can excel in.
 Once you know your strengths, you can look for suitable opportunities
in the field of your choice.

 ii. CAREER PLANNING CAN ENSURE JOB SAFETY:

 One of the benefits of career planning is that it allows you to choose

wisely and enter a field with ample employment potential.

 iii. IT CAN ENSURE FINANCIAL STABILITY:

 When you plan your career well, you also take into account future
uncertainties, potential job losses, or any other unforeseen scenarios
that could impact your earning potential.
 Career planning can also help you mitigate the financial risks and
uncertainties to the extent possible.

 iv. IT CAN HELP YOU ATTAIN PEACE OF MIND:

 One of the lesser-known benefits of career planning is that it provides

peace of mind, especially in stressful situations. Unemployment
invariably leads to stress, uncertainty, and feelings of low self-worth.

o Career planning process

o Self Assessment: How can you know which career path is going to be most
satisfying, if you don't even know what you're all about? You can't. That's
during the self assessment process you'll use tools designed to help you learn
more about your interests, values, personality, aptitudes, skill sets,
developmental needs, and preferred work environments, so you can make an
informed career decision. By the end of the self assessment process you'll have
identified various occupations that are good fit for you.
o Career Exploration: You'll want to narrow this list down to about ten
occupations. Go through the list and eliminate those careers that you know
you're not interested in. For example, even though you'd make a great police
officer, and the career is a good match with your values, interests, and skill set,
you know you don't want to work in a job that requires you to carry and shoot
 a gun. Also, research industries that you'd like to work in. You can conduct
informational interviews with industry professionals, do internships etc.
o Career Identification: You select just one occupation, among the many
you've considered. During this step, you'll identify the occupation that you're
most interested in, as well as few alternatives to fall back on if your first
choice doesn't pan out. Now that you know which occupation you're going to
pursue, you'll want to prepare to enter your chosen field. Identify all the
requirements (e.g. education, costs, etc.) for entering your chosen career field.
o Create an action plan: The action plan is designed to help you reach your
goals. You should identify your short-term and long- term goals, identify
education and training requirements for your career, develop a job search
strategy, identify potential employers, create a resume, compose cover letters,
and prepare for job interviews.

o career life stages,

o Exploration: Ends in mid 20s where one makes transition from school to
work. Do internships, ask industry experts to find out what career options
interests you.
o Establishment: Here, one begins to search for work and finds a first job.
Involves 2 problems: finding your niche and making a mark. You make
mistakes and get to learn a lot.
o Mid-career: people’s performance may excel, plateau or deteriorate.
o Late career: here people are no longer learning about their jobs and neither
are expected to outdo their performance from previous years.
o Decline: final stage and marked by retirement

o career anchors,
 o Technical/functional competency: You would not give up is the opportunity
to apply your technical skills in that area and to continue to develop those
skills to an every higher level. You derive your sense of identity from the
exercise of your skills and are most happy when your work permits you to be
challenged in those areas.
o Managerial competency: You want to be responsible and accountable for
total results and you identify your own work with the success of the
organisation for which you work.
o Security/Stability: You main concern is to achieve a sense of having
succeeded so that you can relax. A concern for financial security (such as
pension and retirement plans) or employment security. Such stability may
involve trading your loyalty and willingness to do whatever the employer
wants from you for some promise of job tenure. You are less concerned with
the content of your work and the rank you achieve in the organisation.
o Creativity: The opportunity to create an organisation or enterprise of your
own, built on your own abilities and your willingness to take risks and to
overcome obstacles.
o Autonomy: The opportunity to define your own work in your own way. If you
are in an organisation, you want to remain in jobs that allow you flexibility
regarding when and how to work. If you cannot stand organisational rules and
restrictions to any degree, you seek occupations in which you will have the
freedom you seek, such as teaching or consulting. You turn down
opportunities for promotion or advancement in order to retain autonomy.

 Compensation:

o Steps in determining compensation, (Establishing pay rates)

 Step 1: Compensation surveys

 Step 2: Job Evaluation : Point Methods

 Step 3: Wage Curve

 Step 4: Wage Structure

o job evaluation Methods,




o components of pay structure (Base and supplementary as variables) (TN

Pg 130)
 o Base compensation: basic pay, salary, allowances paid in cash to employees
irrespective of their performance.
 Basic Pay: depends on pay scale for the job
 Dearness Allowance: compensate against inflation
 House rent allowance: paid to party met the expenditure on housing
accommodation
 city compensatory allowance: compensate for high cost of living in
cities
 transport allowance: transport expenditure to and from work
 others allowances: food, entertainment
o Supplementary: fringe benefits, over and above salary/wages
 pay for time not worked: unemployment insurance, paternity/maternity
leave, sick leave, vacation and holidays
 employee services: recreation, entertainment, free lunches, free
education to their children
 protection against hazards: work hazards, maintenance benefits
 retirement benefits: social security and pension plan
 Legal payment: insurance benefits as passed by govt laws

o factors influencing compensation levels, (Employee Compensation pdf)

o Geographic Differences
o Labor Supply
o Competition
o Cost of Living
o Collective Bargaining
o Communicating with Employees
o Wage Laws

o Trends in Compensation;

 Incentives:

o Importance
o Increases productivity: Employees stay motivated to do their job to the best
of their ability. By offering something they can achieve if they hit a certain
target or achieve something, they have something to work towards
o Decreased Employee Turnover: Giving incentives to your employees not
only motivates them to do their work, but it can also motivate them to stay
longer at the business. Having these perks might be the reason they choose to
stay at your company, instead of looking elsewhere.
o Happy Employees: Not only are incentives great for your company they are
also great for your employee’s happiness and wellbeing. Allowing them to
blow off steam or win prizes is a great way to ensure they are happy working
for the company.
o Help attract new talent: To attract top candidates, you need to stand out from
the competition and offering unique incentive schemes could do just that. It
could be the reason a candidate chooses your company over another one.
o Team culture: If you are offering incentive trips or things that multiple
people will be able to win or attend, then it can help with team bonding and
strengthen the relationships between your employees.

o types;
o Financial Incentives:

1. Pay and allowances. Regular increments in salary every year and grant of
allowance act as good motivators.
2. Profits sharing. Under profits sharing schemes generally the companies fix a
percentage of profits, and if the profits exceed that percentage then the surplus
profits is distributed among the employees. It encourages the employees to
work efficiently to increase the profits of the company so that they can get
share in the profits.
3. Co-partnership/stock option. Many companies offer share in management to
its employees as an incentive to get efficient working form the employees. The
co-partnership is offered by issue of shares on exceeding a fixed target.
4. Bonus. Bonus is a onetime extra reward offered to the employee for sharing
high performance.
5. Commission. Commission is the common incentive offered to employees
working under sales department. Generally the sales personal get the basic
salary and also with this efforts put in by them. More orders mean more
commission.
6. Suggestion system. Under suggestion system the employees are given reward
if the organization gains with the suggestion offered by the employee. For
example, if an employee suggests a cost saving technique of then extra
payment is given to employee for giving that suggestion.
7. Productivity linked with wage incentives. These are wage rate plans which
offer higher wages for more productivity. Under differential piece wage
system efficient workers are paid higher wages as compared to inefficient
workers. To get higher wages workers perform efficiently.
8. Retirement benefits. Some organizations offer retirement benefits such as
pension, provident fund, gratuity etc. to motivate people. These incentives are
suitable for employees who have security and safety need.
9. Perks/fringe benefits/ perquisites. If refers to special benefits such as
medical facility, free education for children, housing facility etc. these benefits
are over and above salary. These extra benefits are related with the
performance of the employees.

o Non financial incentives:

1. Status. Status refers to rank, authority, responsibility, recognition and prestige

related to job. By offering higher status or rank in the organization managers
can motivate employees having esteem and self- actualization need active in
them.
2. Organizational climate. It refers to relations between superior/ subordinates.
Employees are always motivated in the healthy organizational climate.
3. Career advancement. Managers must provide promotional opportunities to
employees. so that employees improve their skill and efficiency with the hope
that they will be promoted to high level.
4. Job enrichment/ assignment of challenging job. Employees get bored by
performing routine job. They enjoy doing jobs which offer them variety and
opportunity to show their skill. By offering challenging jobs, autonomy to
perform job, interesting jobs, employees get satisfied and they are motivated.
5. Employee’s recognition. Whenever the good efforts or the positive attitudes
are shown by the subordinates then it must be recognized by the superior in
public or in presence of other employees. Examples of employee’s recognition
are congratulating employee for good performance, displaying the
achievement of employee, giving certificate of achievement, distributing
mementos, gifts etc.
6. Job security. Job security means giving permanent or confirmation letter. Job
security ensures safety and security need.
7. Employee’s participation. It means involving employee in decision making
especially when decisions are related to workers. Employees follow the
decision more sincerely when these are taken in consultation with them.
8. Autonomy/ employee empowerment. It means giving more freedom to
subordinates. This empowerment develops confidence in employees. They use
positive skill to prove that they are performing to the best when freedom is
given to them.

o Benefits-

 Types,
 Retirement: (Pg 421-422 dessler)
 Social Security
 Pension Plan
 Personal services benefits (Pg 423 - 424)
 Employee Assistance programs
 Work life benefits
 Insurance (Pg 418 - 421)
 Worker’s compensation
 hospitalisation, health and disability insurance
 group life insurance
 Pay for time not worked (Pg 411 - 416)
 Unemployment insurance
 Vacation and holidays
 Sick leave
 Paternity and Maternity leave
 Flexible Benefits (Pg 426 - 428)
 Cafeteria Approach
 Flexible Work schedules

 Brief introduction to

 social security,
  health,

 retirement &

 other benefits.

Unit 4

 Industrial Relations:
 o Introduction to Industrial Relations;

o Trade unions role,

 

Types of Trade Unions

 Craft Unions: Represent Workers with particular skills (same craft, specialised skill or same
occupation) like Plumbers or Weavers.
 General Unions: Include workers with a range of skills and from a range of industries. This
type is open to all members irrespective of their craft and industry within a particular city or
region.
 Industrial Unions: Seek to represent all the workers in a particular industry. This type of
union encourages workers solidarity and makes negotiations easy because a single
agreement covers all workers of a particular industry.
 White Collar Unions: Represent particular professions of White Collar workers i.e. those who
work in office or in a professional environment. More aware employees, prepare reasonable
demands, negotiate well.
 Reformist union: they oppose capitalism, adopt radical ways like strikes, bandhs, boycotts.

o Types,

o functions,


 o problems;

 Industrial disputes-
 o concept,

o causes &




o machinery for settlement of disputes;

o Preventive Machinery:
 Worker’s participation in management
 Collective Bargaining
 Grievance procedure
 Code of Discipline: follow discrplinary procedures
 Standing Orders: provide do’s and don’t’s
  Tripartite bodies: representatives of workers and employers come together
to settle the dispute
o Settlement Machinery:
 Conciliation: Conciliation is a process by which representatives of workers
and employers are brought together before a third person or a group of
persons with a view to persuade them to come to a mutually satisfying
agreement. The objective of this method is to settle disputes quickly and
prevent prolonged work stoppages if they have already occurred.
 Court of enquiry: In case the conciliation proceedings fail to resolve a
dispute, a Court of Enquiry is constituted by the government to investigate
the dispute and submit the report within six months. It is merely a fact
finding body and its findings are not binding on the parties to the dispute.
 Voluntary Arbitration: When conciliation proceedings fail to settle the
dispute, the conciliation officer may persuade the conflicting parties to
voluntarily refer the dispute to a third party known as Arbitrator, appointed
by the parties themselves. The arbitrator listens to the viewpoints of both
parties and delivers an award or judgment on the dispute. He, however, does
not enjoy judicial powers. The arbitrator submits his judgment on the
dispute to the government. Thereafter, the government publishes the award
within 30 days of its submission. The award becomes enforceable after 30
days of its publication. The arbitration award is binding on all the parties to
the agreement.
 Compulsory Adjudication: The Industrial Disputes Act, 1947, provides a
three-tier adjudication machinery – namely Labor Courts, Industrial
Tribunals and National Tribunals – for the settlement of industrial disputes.
 Labor court: The labor court deals with disputes relating to
withdrawal of any statutory concession or privilege, Illegality or
otherwise of a strike or lockout etc.
 Industrial Tribunal: An industrial tribunal can adjudicate on the
following matters:

 (a) Wages including the period and mode of payment;

 (b) Compensatory and other allowances;

 (c) Hours of work and rest periods;

 (d) Leave with wages and holidays;

 (e) Bonus, profit-sharing, provident fund and gratuity etc.

National Tribunal: To deal with disputes of national importance or issues which are likely to affect
the industrial establishments in more than one state.

 Employee Grievances

o concept,
Causes

Grievance redressal procedure

 Discipline-

o Concept

Aspects of discipline
Disciplinary Procedure
 Collective bargaining-

o concept,
o Negotiations about working conditions and terms of employment between the
management and the workers

o types,


Process

o problems, (same as problems of trade unions)

o Multiple Unions: No union enjoys the support of the majority of workers in the
plant. Moreover, rivalry among the trade unions does not allow to create the proper
atmosphere for collective bargaining.
o Non recognition: There is a lack of definite procedure to determine which union is to
be recognized to serve as a bargaining agent on behalf of the workers.
o Excessive dependence on adjudication: A large number of organizations and trade
unions like to use the devices of compulsory adjudication for the settlement of their
industrial disputes.
o Little government support: The government has shown little interest in collective
bargaining because:
i. It does not have confidence in the bargaining strength of our trade unions,
ii. It has fear of stickers and lockouts,
iii. It has fear of the communists gaining in strength.
 o Interference by political leaders: More often, industrial disputes are sought to be
settled by inviting the political leaders to mediate and help the parties agree. The
inhibits the growth of collective bargaining.

o essentials of effective collective bargaining.

PYP
Performance Management Vs Performance Appraisal

1. Growth Vs Rectification: PM focusses on spending time on growth of employees for future.

PA focusses on evaluating past mistakes of employees.

2. Occasional Vs Continuous: PA takes places no more than twice in a year. PM is a continuous

process that can take place in day to day conversations between managers and employees.

3. Quantitative Vs Holistic Approach: PA uses quantitative techniques. PM uses quanti and

quali.

4. HR Vs Managers: PA taken by HR department. PM taken by managers and supervisors.

 5. Operational Vs Strategic Tool: PA is an operational tool for increasing employee efficiency.
PM is a strategic tool.

How to ensure training program has been effective?