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Human Resource Management Full Notes

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Human Resource Management Full Notes

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Human Resource Management Full Notes

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

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