Human Resource Management 9781642875935, 9789350245606

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Uu.man Resource Management

Dr. P. Subba Rao . Founding Professor of Business Administration, School of Business The Vniveristy of Papua New Guinea Papua New Guinea

Australia & Dean (On-Lien) Faculty of Commerce and Management Sri Krishnadevaraya University Anantapur - 515 003 (A.P.)

India

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Himalaya Publishing House No part of this book shall be reproduced, reprinted or translated for any purpose whatsoever without prior permission of the Publisher in writing.

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Revised Edition: 2009

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CHAPTER

1

1 - 32

HUMAN RESOURCE MANAGEMENT: FUNCTIONS AND ROLE Human Resource Management - Meaning of HRM - Functions of HRM - Importance of HRM - Process of HRM - Systems and Techniques: Factors, HR System, HR Subsystems - Objectives of HRM - Role of Human Resource Manager - Duties and Responsibilities of Human Resource Manager - Typical Organisation Set up of Human Resource Department - Evolution and Development of HRM - Questions for Discussion.

CHAPTER

2

HUMAN RESOURCE PLANNING, RECRUITMENT, SELECTION AND PLACEMENT

33 - 68

Meaning and Objectives of Human Resource Planning Importance, Benefits of Human Resource Planning - Process of Human Resource Planning - Recruitment: Meaning, Methods - Selection: Meaning, Methods, Uses of Tests in Selection - Placement: Meaning, Problems involved, How to make Effective? - Questions for Discussion.

CHAPTER 3

TRAINING AND INDUCTION

69 - 88

Induction: Meaning, Objectives and Purpose of Induction - Training: Meaning, Need for training, Benefits of Training, Identification of training needs, Methods of Training.

CHAPTER 4

PERFORMANCE ApPRAISAL AND COMPENSATION

89 - 136

Meaning of Performance Appraisal - Objectives of Performance Appraisal - Methods of Performance Appraisal - Limitations of . Performance Appraisal Compensation: Meaning - Objectives Principles of Wage Fixation, Job Evaluation, Incentives, Bonus and Social Security measures - Questions for Discussion.

CHAPTERS

PROMOTION AND TRANSFER

137 - 148

Promotions - Meaning - Purposes - Bases(Merit, Seniority, MeritCum-Seniority) - Benefits - Problems - Transfer - Meaning Reasons - Types - Denotions - Meaning - Reasons - Right sizing of workforce: Need for Right sizing - Factors and Consequences.

CHAPTER 6

WORK ENVIRONMENT, MORALE, GRIEVANCES AND RECORDS

149 - 182

Work Environment - Meaning of Work Environment, Fatigue: Implications of Fatigue, Causes and Symptoms of Fatigue - Monotony and Boredom: Factors contributing to Monotony and Boredom Industrial Accidents - Employee Safety - Morale - Grievance and Grievance Handling - Personnel Records and Personnel Audits. Questions for Discussion.

CHAPTER 7

HUMAN RESOURCE DEVELOPMENT

183 - 207

HRD, Knowledge Management, Globalisation, HRD - Meaning of HRD - Role of Training in HRD, Knowledge Management/Knowledge Resources - Impact of Globalisation on Human Resource Management - Problems in relation to Transnationals and Multinationals - Social Capital. SKILL DEVELOPMENT

• • • •

209 - 215

Scheduling hiring procedure to hire (a) Computer Operator (b) Supervisor (c) Manager - HR. Designing a training programme to train (a) sales person (b) MacAine opeator (c) Accountant Preparing job description and job specification for any two jobs. Conducting exit interviews for hypothetical VR employees.

1

Human Resource Management: Functions and Role

Human Resource Management - Meaning of HRM - Functions of HRM - Importance of HRM - Process of HRM - Systems and Techniques - Objectives of HRM - Role of Human Resource Manager - Duties and Responsibilities of Human Resource Manager - Typical Organisation Set up of Human Resource Department - Evolution and Development of HRM - Questions for Discussion.

INTRODUCTION Information technology (IT) - a wonderful creation of man-brought significant shifts in our day to day life. Indian software professionals made significant strides in the information technology industry of USA. Employees of Rourkela Steel Plant turned the loss-making unit into a profit making company. Similarly, employees of TISCO, acquired core competencies for their company which was affected by dumping of steel from China. Most of the public sector companies like Hindustan Machine Tools Ltd. (HMT), and Hindustan Cl.lbles Ltd., (HeL) became sick. Thus, the people make or mar an organisation. How to induce the people to make an organisation but not to mar it? Every company or organisation is deeply interested in having an answer to this question. The answer to this question centred around the following areas: • Getting the people who can make an organisation. • Enabling those people to acquire required capabilities to make a successful organisation. • Motivating them to contribute their resources continuously for running the organisation successfully. We need to know an important concept i.e., human resources. People with required skills to make an organisation are generally referred to as human resources.

MEANING OF HUMAN RESOURCES According to Leon C. Megginson, the term human resources can be thought of as "the total knowledge, skills, creative abilities, talents and aptitudes of an orgollisation 's workforce, as well as the value, attitudes and beliefs of the individuals involved." The term human resources can also be explained in the sense that it is a resource like any natural resource. It does mean that the management can get and use the skill, knowledge, ability etc. through the development of skills, tapping and utilising them again and again by developing a positive attitude among employees. The aspect of 'attitude' among the human resources aspects gained significance alongwith globalisation (see Box 1.1).

2

The . process of Iiberalisation, globalisation and the consequent competition made the business organisations to realise that the persons with positiue attitude haue self commitment and motiuation and are loyal to the organisation. They see the positiue aspects and serues the customer. Organisations hauing employees with posi-

Human Resources Management

, tiue attitude haue become market leaders. Hence, it is suggested that: • Hauing the right attitude eleuates your attitude. •

Try to maintain a positiue outlook and striue to adopt an attitude of gratitude.

•

Right attitude improues your aptitude.

Managing of these human resources deals with the above areas and also provides an answer to the question referred above. Now, we shall discuss the meaning of human resources management and other areas:

MEANING AND DEFINITION OF HRM In simple sense, human resources management means employing people, developing their resources, utilising, maintaining and compensating their services in tune with the job and organisational requirements with a view to contribute to the goals of the organisation, individual and the society. Michael J, Jucius defined Personnel Management as "the field of management which has to do with planning, organising, directing and controlling the functions of procuring, developing, maintaining and utilising a labour force, such that the (a) Objectives for which the company is established are attained economically and effectively, (b) Objectives of all levels of personnel are served to the highest possible degree, and (c) Objectives of society are duly considered and served," Human Resources Management (HRM) can be defined as managing (planning, organising, directing and controlling) the functions of employing, developing and compensating human resources resulting in the creation and development of human relations with a view to contribute proportionately (due to them) to the organisational, individual and social goals.

Features of Human Resources Management Features of human resources management include: Human resources management is concerned with employees both as individuals and as a group in attaining goals. It is also concerned with behaviour, emotional and sodal aspects of personnel. It is concerned with the development of human resources, i.e. knowledge, capability, skills, potentialities and attaining and achieving employee goals, including job satisfaction. Human resources management covers all levels (low, m'iddle, and top) and categories (unskilled, skilled, technical, professional, clerical and managerial) of employees. It covers both organised and unorganised employees.

Human Resources Management: Fuctlons and Role

3

It applies to the employees in all types of organisations in the world (industry, trade, service, commerce, economic, social, religious, political and government departments). Thus, it is common in all types of organisations. Human resources management is a continuous and never ending process. It aims at attaining the goals of organisation, individual and society in an integrated approach. Organisation goals may include survival, growth and development in addition to profitability, productivity, innovation, excellence etc. Individual employee-goals consist of job satisfaction, job security, high salary, attractive fringe benefits, challenging work, pride, status, recognition, opportunity for development etc. Goals of the society include equal employment opportunity, protecting the disadvantaged sections and physically handicapped (See Box 1.2), minimisation of inequalities in the distribution of income by minimising wage differentials, developing the society in general by organising developmental activities etc.

More than 50 organisations, including HP-Campaq, United Breweries, BPL, Planetasia, MindTree, Aztec Software and TMG, as well as senior executives on their own strength, are coming to the aid of the handicapped. NGOs will also be partners in this new entity, called Bridge-IT, one of the first of its kind to pool in resources to make life a little better for the physically disabled. Says l/antus Technologies CEO Binod Singh, who isspear-headingthe initiative: "Having spent over 20. years in the industry, I have

come across a number of people who at some point in their corporate careers had the desire to do something for the not-so-fortunate. Most of us never know what, where and how to do it. " The reach is bound to be enormous, if everything goes right. According to Dr. Annapoorna Ravichandran, director, Mobility India: "This is a good platform - we can reach out to the world because companies may have us on their websites too. Companies like IBM do have a preference for the disabled, we did not know about such things till now."

(Source: Sunday Times of India, June 9, 2002, Bangalore, p.3.)

Human resources management is a responsibility of all line managers and a function of staff managers in an organisation. It is concerned mostly with managing human resources at work. Human resources management is the central sub-system of an organisation and it permeates all types of functional management, viz., production management, marketing management and financial management. - Human resources management aims at securing unreserved co-operation from all employees in order to attain predetermined goals. Further, the analysis shows that most of the definitions are oriented towards the functions and objectives of human resources management. As such, the detailed discussion about the ful)ctions and objectives of HRM will help us to understand the term HRM more clearly and objectively.

4

Human Resources Management

Having discussed the meaning of HRM, now we shall discuss the similar terms of HRM. Similar Terms: Various terms are used to denote human resources management. These terms are: labour management, labour administration, personnel management, personnel administration, human capital management, human asset management, employment administration, employee-employer relations, union management relations, industrial relations and the like. Under the labour management concept, the employees are treated just like a commodity which can be purchased, used and thrown. Therefore, it deals with employment, wages and firing. The concept of industrial relations deals with relations among employees, trade unions, employers and the government. Therefore, it covers trade unions, disputes, grievances, discipline, collective bargaining and participative management. The latestterm in this direction is Human Resources Development (HRD). Some view that HRM and HRD are one and the same. Infact, some organisations changed their personnel management department as Human Resources Management Department while other organisations changed them as Human Resources Development Department. But HRD is the developmental aspect of HRM·. Thus, HRD is a part of HRM. HRD deals with the training, management development, career planning and development and organisation development. The most prominent and the closest one to the term human resources management is personnel management.

Differences Between Personnel Management and Human Resources Management Personnel Management is different from Human Resources Management. Personnel means persons employed. Hence, personnel management views the man as economic man who works for money or salary. Human resources management treats the people as human beings having economic, social and psychological needs. Thus, HRM is broader in scope compared to personnel management (See Box 1.3). John Storey differentiated personnel management from human resources management. Exhibit 1.1 presents the differences between these two.

IMPORTANCE OF HUMAN RESOURCES MANAGEMENT Human resources plays a crucial role in the development process of modern economics. Arthur Lewis observed, "there are great differences in deuelopment between countries which seem to haue roughly equal resources, so it is necessary to enquire into the difference in human behauiour." It is often felt that though the exploitation of natural resources, availability of physical and financial resources and international aid play prominent roles in the growth of modern economies, none of these factors is more significant than efficient and committed manpower. It is infact said that all development comes from the human mind.

Human Resources in the Nation's Well-being A nation with abundance of physical resources will not benefit itself unless human resources make use of them. Infact, human resources with right attitude are solely responsible for making use of national resources and for the transformation of traditional economies into the modern industrial and knowledge economies (See Box 1.4).

Human Resources Management: Fuctlons and Role

Mr.Bhat, Personnel Manager of IVS Group approached the Managing Director and appraised him of. the absence of Mr.Perumal, Driver for the past 30 days and requested him to approve the show-cause notice to be served to Mr.Perumal as per the Labour Rules in force . The Managing Director said to Mr.Bhat: when Mr.Perumal, has been absent for the total month, your duty is in Mr.Perumal's house but not in the company. Go immediately to Mr.Perumal's house and report to me before 5 p.m. today.

5

The M.D. immediately contacted the hospital and informed them that the company will pay Rs.one lakh tomorrow and asked them to conduct the surgery on Mr.Perumal's wife tomorrow itself. The M.D . ordered Mr.Bhat to arrange to issue a cheque for Rs.one lakh and also pay Rs.lO,OOO to Mr.Perumal to meet incidental expenses as grant. Mr.Perumal was surprised at the decision of the M.D. and emotionally touched his feet. The M.D. told Mr.Bhat, problems of our employees are our problems, treat them as human beings.

Mr.Bhat went to Mr.Perumal's house and found that Mr.Perumal has been in distress as he has been trying to mobilise Rs.one lakh to get the treatment to his sick wife in a reputed hospital in Chennai. Mr.Bhat alongwith Mr.Perumal met the M.D. of the company at 3.00 p.m. and appraised him of the reason for his distress and absenteeism for a month.

This news spread in the entire company within no time and the employees felt highly secured. The productivity level in the company doubled in the following month itself.

In the words of Thyagarajan, Managing Director, Glaxo, "organisations that have world class ambitions will need to have right attitude

workers." As Adi B. Godrej, Chief Executive Officer, Godrej puts it, "all corporate strengths are dependent on right attitude people. "

Mr.Bhat then understood that his company follows human resources policy, but not personnel policy and therefore, he should be a HR Manager.

Man vis-a-vis Machine Most of the problems in organisational sections are human and social rather than physical, technical or economic. No industry can be rendered efficient so long as the basic fact remains unrecognised that it is prinCipally human. It is not a mass of machines and technical processes but a body of men. Personnel Management and General Management Management of an organisation in modern economies is not only complex and sophisticated but it is also vital influencing the economic growth of a country. One of the fundamental tasks of management is to manage human resources in the service of the economic objectives of the enterprise. Successful management depends not solely, but Significantly upon the ability to predict and control human behaviour.

6

Human Resources Management Exhibit 1.1 DIFFERENCES BETWEEN PERSONNEL MANAGEMENT AND HRM

Dimension Beliefs and Assumptions Contract Rules Guide to Management action Behaviour referrent Managerial task vis-a-vis labour Nature of relations Conflict Strategic Aspects Key relations Initiatives Corporate plan Speed of decision Line Management Management role Key managers Communication Standardization Prized management skills Key Levers Selection Pay Conditions Labour management Thrust of relations with stewards

PM

HRM

Careful delineation of written contracts. Importance of devising

Aim to be 'beyond contract' 'can do' outlook, impatience with 'rule' 'Business-need'

Clear rules/mutuality procedures. Norms/customs and practise Monitoring

Values/Mission Nurturing

Pluralist Institutionalized

Unitarist De-emphasised

Labour management Piecemeal Marginal to Slow

Customer Integrated Central to Fast

Transactional PersonneVIR Specialists Indirect High(Eg.Parity an issue) Negotiation

Transformational leadership GeneraI/business/line managers Direct Low(Eg. 'parity' not seen as relevant)

Separate, marginal test Job evaluation (fixed grades) Separately negotiated Collective bargaining contracts Regulated through facilities and training

Integrated, key task Performance-related Harmonization Towards individual contracts

Facilitation

Job categories and grades

Many

Marginalized (with exception of some bargaining for change models) Few

Communicatibn Job design Conflict handling Training and development

Restricted flow Division of labour Reach temporary truces Controlled access to courses

Increased flow Teamwork Manage climate and culture Learning companies

Foci of attention for interventions

Personnel procedures

Wide ranging cultural structural and personnel strategies

(Source: John Storey, "Managing Human Resources", Beacon Books, New Delhi, 1997, p.3S.)

Human Resources Management: Fuctlons and Role

7

Human Resources System is a Central Sub-system Human resources system in an organisation is not only a unique sub-system but a principal and central sub-system and it operates upon and controls all other sub-systems (See Fig. 1.4) "Personnel management is a major pervasive sub-system of all organisations." The importance of human resources management is discussed by Yodder, Heneman and others from three standpoints, viz., "social, professional and individual enterprise." Social Significance: Proper management of personnel enhances their dignity by satisfying their social needs. This is done by: (i) maintaining a balance between the jobs available and the jobseekers according to the qualifications and needs; (ii) providing suitable and most productive employment, which might bring them psychological satisfaction; (iii) making maximum utilization of the resources in an effective manner and paying the employee a reasonable compensation in proportion to the contribution made by him; (iu) eliminating waste or improper use of human resources, through conservation of their normal energy and health and (u) by helping people make their own decisions that are in their interests. Professional Significance: By providing a healthy working environment, it promotes team work in the employees. This is done by (i) maintaining the dignity of the employee as a 'human-being'; (ii) providing maximum opportunities for personal development; (iii) providing healthy relationship between different work groups so that work is effectively performed; (iu) improving the employees' working skill and capacity; (u) correcting the errors of wrong postings and proper reallocation work. Significance for Individual Enterprise: It can help the organisation in accomplishing its goals by: (i) creating right attitude among the employees through effective motivation; (See Box 1.4) (ii) utilising effectively the available human resources and (iii) securing willing co-operation of the employees for achieving goals of the enterprise and fulfilling their own social and other psychological needs of recognition, love, affection, belongingness, esteem and self-actualisation.

OBJECTIVES OF HUMAN RESOURCES MANAGEMENT Objectives are pre-determined goals to which individual or group activity in an organisation is directed. Objectives of personnel management are influenced by social objectives, organisational objectives, functional objectives and individual objectives (See Fig. 1.1). Institutions are instituted to attain certain specific objectives. The objectives of the economic institutions are mostly to earn profits, and that of educational institutions are mostly to impart education and/or conduct research so on and so forth . However, the fundamental objective of any organisation is survival. Organisations are not just satisfied with this goal. Further, the goal of most of the organisations is growth and/or profits. The objectives of HRM may be as follows: (i) to create and utilise an able and motivated workforce, to accomplish the basic organisational goals. (ii) to establish and maintain sound organisational structure and desirable working relationships

among all the members of the organisation. (iii) to secure the integration of individual and groups within the organisation by co-ordination of

the individual and group goals with those of the organisation. (ju) to create facilities and opportunities for individual or group development so as to match it with

the growth of the organisation. (u) to attain an effective utilisation of human resources in the achievement of organisational

goals.

Human Resources Management

8

Objectives of HRM

Social Objectives -.LOrganisational Objectives -.LFunctional Orjectives -.LIndividual Objectives

(vi) to identify and satisfy individual and group needs by providing adequate and equitable wages, incentives, employee benefits and social security and measures for challenging work, prestige, recognition, security, status etc.

HRM objec~ives at Wipro • To respect the individual, as people are the greatest asset. • To govern individual and company relationships with the highest standard of conduct and integrity. • To be close to the customer through employees. • To achieve and maintain leadership in people management..

HRM Policies, Procedures and Programmes After the establishment of objectives of HRM, human resources policies are to be formulated (See Fig.1.2). Policies are general statements that guide thinking and action in decision-making.

HRM Programming

HRM Objectives -.LHRM Policie~ -.LHRM Procedures -.LHRM Programmes

Definition of HRM Policy A policy is a plan of action. Brewster and Richbell defined HRM policies as, "a set of proposals and actions that act as a reference point for managers in their dealings with employees". "Personnel policies constitute guides to action. They furnish the general standards or bases on which decisions are reached. Their genesis lies in an organisation's values, philosophy, concepts and principles". Personnel policies guide the course of action intended to accomplish personnel objectives. Box 1.5 provides an example of HRM policy.

One of the personnel objectives of Indian Railways is to provide equal employment opportunities to the people of minority sections.

Personnel policy of Indian Railways relating to the above objectives is to /ill 15 per cent and 7.5 per cent of the vacancies from those candidates belonging to Scheduled Castes and Scheduled Tribes respectively.

Human Resources Management: Fuctlons and Role

9

What is HRM Procedure? Policies are general instructions whereas procedures are specific applications. A procedure is a well thought out course of action. It prescribes the specific manner in which a piece of work is to be done. Procedures are called 'action guidelines.' They are generally derived from policies. Where policies define a broad field, procedures show a sequence of activities within that area. The emphasis is on chronological, step-by-step sequence of required actions. For instance, a student is required to complete several itemized steps in order to register himself to complete several itemized steps for courses in a university. The basic purpose of a procedure is to spell out clearly the way one is to go about doing something. For instance the policy, referred to earlier, might be translated into action through the following procedure. Box 1.6 provides an example of HRM procedures. .

All zonal railways will fill 15 per cent and 7.5 per cent of their vacancies in Group C and Group D categories from the candidates belonging to Scheduled Castes and Scheduled Tribes respectively. If suitable candidates are not available from these communities, the vacancies such as loco driver, signalling staff, station master will be filled by candidates belonging to other communities. In case of vacancies in other jobs, they should be filled only by the candidates belonging to scheduled castes and scheduled tribes in future. However, NorthEast Frontier Railway can fill even these vacancies by the candidates belonging to other communities, if the candidates from scheduled communities are not available. In case of jobs in Groups A and B, candidates belonging to sched-

uled castes and scheduled tribes will be given preference if they are equally qualified and meritorious than those of other communities. Another example of policy and procedure is as follows: Further, personnel rules and programmes help in translating procedures into concrete action. Personnel rule spells out specific required action or non-action allowing no discretion . For example: Paying bonus of 8.33 per cent of the salary (consisting of pay plus dearness allowance) on March 31, 1998 to all the confirmed employees who had completed minimum one year of continuous service as on March

31 , 1998.

Personnel programmes are complex sets of goals, policies, procedures, rules, steps to be taken, resources to be employed and other elements necessary to carry out a given course of action. It can be said that rules and programmes are aids to policy.

Sources of Content for Formulating HRM Policies Policies are formulated on the basis of material collected from different sources like: • past experience of the organisation; • existing practices and experiences in other organisations of the same nature or in the same geographical area or in the entire nation; • attitudes, philosophies of the management at various levels, employees, trade unions, etc.; • the knowledge and experience gained by all line managers and personnel managers in handling personnel issues; • organisational policies etc. Personnel policies to be effective should be evaluated and controlled continuously.

10

Human Resources Management

FUNCTIONS OF HRM The functions of HRM can be broadly classified into two categories, viz., (i) Managerial functions and (ii) Operative functions .

I. Managerial Functions Managerial functions of personnel management involve planning, organising, directing and controlling. All these functions influence the operative functions (Fig. 1.3) . Figure . . .

Functions of HRM

I

Functions of

HRM Managerial Functions

Operative Functions

I

I

Planning Organising I - Directing -- Controlling II-

-

Employment Human Resources Development - Compensation - Human Relations -Industrial Relations - Recent Trends in HRM

(i) Planning: It is a pre-determined course of action. Planning pertains to formulating strategies of personnel programmes and changes in advance that will contribute to the organisational goals. In other words, it involves planning of human resources, requirements, recruitment, selection, training etc. It also involves forecasting of personnel needs, changing values, attitudes and behaviour of employees and their impact on the organisation. (ii) Organising: An organisation is a means to an end. It is essential to carry out the determined course of action. In the words of J.e. Massie, an organisation is a "structure and a process by which a co-operative group of human beings allocates its task among its members, identifies relationships and integrates its activities towards a common objective." Complex relationships exist between the specialised departments and the general departments as many top managers are seeking the advice of the personnel man?ger. Thus, an organisation establishes relationships among the employees so that they can collectively contribute to the attainment of company goals. (iii) Directing: The next logical function after completing planning and organising is the execution of the plan. The basic function of personnel management at any level is motivating, commanding, leading and activating people. The willing and effective co-operation of employees for the attainment of organisational goals is possible through proper direction. Tapping the maximum potentialities of the people is possible through motivation and command. Co-ordination deals with the task of blending efforts in order to ensure successful attainment of an objective. The personnel manager has to co-ordinate various managers at different levels as far as personnel functions are concerned. (iv) Controlling: After planning, organising and directing various activities of personnel management, the performance is to be verified in order to know that the personnel functions are performed in conformity with the plans and directions of an organisation. Controlling also involves checking, verifying and comparing of the actuals with the plans, identification of deviations if any and correcting of identified deviations. Thus, action and operation are adjusted to pre-determined plans and

Human Resources Management: Fuctlons and Role

11

standards through control. Auditing training programmes, analysing labour turnover records, directing morale surveys, conducting separate interviews are some of the means for controlling the personnel management function and making it effective.

II. Operative Functions The operative functions of human resources management are related to specific activities of personnel management viz., employment, development, compensation and relations. All these functions are interacted with managerial functions. Further, these functions are to be performed in conjunction with management functions as shown in Figure 1.4.

I Figure

.,.

HRM as a Central Sub-System

1. Employment: It is the first operative function of Human Resources Management (HRM). Employment is concerned with securing and employing the people possessing the required kind and level of human resources necessary to achieve the organisational objectives. It covers functions such as job analysis, human resources planning, recruitment, selection, placement, induction and internal mobility. (i) Job Analysis: It is the process of study and collection of information relating to the operations and responsibilities of a specific job. It includes: • Collection of data, information, facts and ideas relating to various aspects of jobs including men, machines and materials. • Preparation of job description, job specifications, job requirements and employee specifications which will help in identifying the nature, levels and quantum of human resources. • Providing the guides, plans and basis for job design and for all operative functions of HRM. (ii) Human Resources Planning: It is a process for determination and assuring that the organisation will have an adequate number of qualified persons, available at proper times, performing jobs which would meet the needs of the organisation and which would provide satisfaction for j he individuals involved. It Involves: • Estimation of present and future requirements and supply of human resources based on objectives and long range plans of the organisation. • Calculation of net human resources requirements based on present inventory of human resources • Taking sto!ps jr) mould, change and develop the strength of existing employees in the organisation so as to meet the future human resources requirements.

12

Human Resources Management

• Preparation of action programmes to get the rest of human resources from outside the organisation and to develop the human resources in terms of existing employees. (iii) Recruitment: It is the process of searching for prospective employees and stimulating them to apply for jobs in an organisation. It deals with: • Identification of existing sources of applicants and developing them. • Creation/identification of new sources of applicants. • Stimulating the candidates to apply for jobs in the organisation. • Striking a balance between internal and external sources. (iv) Selection: It is the process of ascertaining the qualifications, experiences, skills, knowledge etc.,

of an applicant with a view to appraising his/her suitability to a job. This function includes: • Framing and developing application blanks. • Creating and developing valid and reliable testing techniques. • Formulating interviewing techniques. • Checking of references. • Setting up a medical examination policy and procedure. • Line manager's decision. • Sending letters of appointment and rejection. • Employing the selected candidafes who report for duty. (v) Placement: It is the process of assigning the selected candidate with the most suitable job in terms of job requirements. It is matching of employee specifications with job requirements. This function includes: • Counselling the functional managers regarding placement. • Conducting follow-up study, appraising employee performance in order to determine employee adjustment with the job. • Correcting misplacements, if any. (vi) Induction and Orientation: Induction and orientation are the techniques by which a new employee is rehabilitated in the changed surrounding and introduced to the practices, policies, purposes and people etc., of the organisation. • Acquaint the employee with the company philosophy, objectives, policies, career planning and development, opportunities, product, market share, social and community standing, company history, culture etc. • Introduce the employee to the people with whom he has to work such as peers, supervisors and subordinates. • Mould the employee attitude by orienting him to the new working and social environment. 2. Human Resources Development: It is the process of improving, mOUlding and changing the skills, knowledge, creative ability, aptitude, attitude, values, commitment etc. based on present and future job and organisational requirements. This function includes: (i) Performance Appraisal: It is the systematic evaluation of individuals with respect to their performance on the job and their potential for development. It includes: • • • •

Developing policies, procedures and techniques. Helping the functional managers. Reviewing of reports and consolidation of reports. Evaluating the effectiveness of various programmes.

Human Resources Management: Fuctlons and Role

13

(ij) Training: It is the process of imparting to the employees technical and operating skills and knowledge. It includes: • Identification of training needs of the individuals and the company. • Developing suitable training programmes. • Helping and advising line management in the conduct of training programmes. • Imparting of requisite job skills and knowledge to employees. • Evaluating the effectiveness of training programmes. (iii) Management Development: It is the process of designing and conducting suitable executive development programmes so as to develop the managerial and human relations skill of employees. It includes: • Identification of the areas in which management development is needed. • Conducting development programmes. • Motivating the executives. • Designing special development programmes for promotions. • Using the services of specialists, and/or utilising of the institutional executive development programmes. • Evaluating the effectiveness of executive development programmes. (iv) Career Planning and Development: It is the planning of one's career and implementation of career plans by means of education, training, job search and acquisition of work experiences. It includes internal and external mobility. (v) Internal Mobility: It includes vertical and horizontal movement of an employee within an organisation. It consists of transfer, promotion and demotion. (vi) Transfer: It is the process of placing employees in the same level jobs where they can be utilised more effectively in consistence with their potentialities and needs of the employees and the organisation. It also deals with: • Developing transfer poliCies and procedures. • Guiding employees and line management on transfers. • Evaluating the execution of transfer policies and procedures. (vii) Promotion: It deals with upward reassignment given to an employee in the organisation to occupy higher position which commands better status and/or pay keeping in view the human resources of the employees and the job requirements. • This function covers the formulating of equitable, fair and consistent promotion policies and procedures. • Advising line management and empl9yees on matters relating to promotions. • Evaluating the execution of promotion policies and procedures. (viii) Demotion: It deals with downward reassignment toan employee in the organisation. • Develop equitable, fair and consistent demotion policies and procedures. • Advising line managers on matters relating to demotions. • Oversee the implementations of demotion policies and procedures. (ix) Retention Management Employers prefer to retain more talented employees while they retrench less talented employees. Employers modify existing human resource strategies and craft new strategies in order to pay more salaries, provide more benefits and create high quality of work life to retain the best employees.

14

Human Resources Management

(x) Change and Organisation Development: Change implies the creation ofimbalances in the existent pattern or situation. Organisation development is a planned process designed to improve organisational effectiveness and health through modifications in individual and group behaviour, culture and systems of the organisation using knowledge and technology of applied behavioural sciences. 3. Compensation: It is the process of providing adequate, equitable and fair remuneration to the employees. It includes job evaluation, wage and salary administration, incentives, bonus, fringe benefits, social security measures etc. (i) Job Evaluation: It is the process of determining relative worth of jobs. • Select suitable job evaluation techniques. • Classify jobs into various categories. • Determining relative value of jobs in various categories. (ii) Wage and Salary Administration: This is the process of developing and operating a suitable wage and salary programme. It covers: • • • •

Conducting wage and salary survey. Determining wage and salary rates based on various factors. Administering wage and salary programmes. Evaluating its effectiveness. (iii) Incentives: It is the process offormulating, administering and reviewing the schemes of financial incentives in addition to regular payment of wages and salary. It includes: • Formulating incentive payment schemes. • Helping functional managers on the operation. • Review them periodically to evaluate effectiveness. (iv) Bonus: It includes payment of statutory bonus according to the Payment ofBonus Act, 1965 and its latest amendments: (v) Fringe Benefits: These are the various benefits at the fringe of the wage. Management provides these benefits to motivate the employees and to meet their life's contingencies. These benefits include: • Disablement benefit. • Housing facilities. • Educational facilities to employees and children. • • • •

Canteen facilities. Recreational facilities. Conveyance facilities. Credit facilities.

• Legal clinics. • Medical, maternity and welfare facilities. • Company stores. (vi) Social Security Measures: Managements provide social security to their employees in addition to the fringe benefits. These measures include: • Workmen's compensation to those workers (or their dependents) who involve in accidents. • Maternity benefits to women employees.

Human Resources Management: Fuctlons and Role

15

• Sickness benefits and medical benefits. • Disablement benefits/allowance. • Dependentbenefits. • Retirement benefits like provident fund, pension, gratuity etc. 4. Human Relations: Practicing various human resources policies and programmes like employment, development and compensation and interaction among employees create a sense of relationship between the individual wor~er and management, among workers and trade unions and the management. It is the process of interaction among human beings. Human relations is an area of management in integrating people into work situations in a way that motivates them to work together productively, cooperatively and with economic, psychological and social satisfaction. It includes: • Understanding and applying the models of perception, personality, learning, intra and inter personal relations, intra and inter group relations. • Motivating the employees. • Boosting employee morale. • Developing the communication skills. • Developing the leadership skills. • RedreSSing employee grievances properly and in ti~e by means of a well formulated grievance procedure. • Handling disciplinary cases by means of an established disciplinary procedure. • Counselling the employees in solving their personal, family and work problems and releasing their stress, strain and tensions. • Providing a comfortable work environment by reducing fatigue, monotony, boredom and industrial accidents. • Improving quality of work life of employees through participation and other means. 5. Industrial Relations: Industrial relations refers to the study of relations among employees, employer, government and trade unions. Industrial relations include: • Indian labour market • Trade unionism • Collective bargaining • Industrial conflicts • Workers' participation in management and • Quality circles. 6. Recent Trends in HRM: Human Resources Management has been advancing at a fast rate. The recent trends in HRM include: • Quality of worklife • Total quality in human resources • HR accounting, audit and research and • Recent techniques of HRM.

16

Human Resources Management

NATURE OF HUMAN RESOURCES People in any organisation manifest themselves, not only through individual sections but also throuqh group interactions. When individuals come to their workplace, they come with not only technical s!,ills, knowledge etc., but also with their personal feelings, perception, desires, motives, attitude, values etc. Therefore, employee managemeht in an organisation does mean management of not only technical skills but also other factors of the human resources. (See Box 1.7) .

The CEO of MICO says: Employees of our company are highly skilled, talented and knowledgeable. But the ualue system of most of them is such that they do not speak until we repeatedly request them to offer their ideas. Their motiue is only to offer a suggestion

when it is sought. When I ask them, "Why don't you speak freely, as you speak with your family members?", they reply that suggestion offered in the company without sought is just like paying the money without buying.

Complex Dynamism A close observation of employees reveals that they are complex beings, Le. (i) economic, (ii) physiological, (iii) psychological, (iu) sociological and (u) ethical beings. The proportions or intensities of these dimensions of the human factor in employment may differ from one situation to another but the fact remains that these are the basic things of the human factor in organisations. Undoubtedly, the physical and mental attributes of human resources are highly pertinent to organisational performance and productivity .

A Social System Human resources management is relatively new and developed as a part of management (concerned with the management of human resources). In its simple terms, personnel management is the task of dealing with human relationships, moulding and developing the human behaviour and attitude towards the job and organisational requirements. The personnel manager involves himself in administering a social system. In this process, the manager has to see that the economic satisfaction for a reasonable livelihood, the social satisfaction of working together as members of a group and individual job satisfaction of a worker are attained.

A Challenging Task The personnel manager plays a Crucial role in understanding the changing needs of the organisation and society. Further, he faces some challenging tasks in attaining the employee, organisational and societal objectives with the available resources. In addition to it, the technological developments increasing educational standards etc. further complicate the role of the personnel manager. Hence, the modem personnel manager should equip himself with good knowledge of disciplines, viz. Economics, Commerce, Management, Sociology, Psychology, Engineering, Technology and Law.

ROLE OF. HUMAN RESOURCES MANAGEMENT Human ResourceS Management plays the moSicrucial role in the management of an organisation. Human resources play crUcial role in the conversion process of inputs into outputs. PrOduct design, quality maintenance, rendering services etc. depend upon the efficiency of human resources. Similarly, human

Human Resources Management: Fuctlons and Role

17

resources plays critical role in marketing the products and services. Human resource also plays significant role in managing finances and managing information systems. Role of HR at TCS is presented in Fig. 1.5.

PROCESS OF HRM

I Figure

••• Performance discussions and performance management for all at a centre

Role of HR at Tes

-----------r-Recruitment

The Centre Manager

Allocations to projects (Domestic! Overseas)

Training (TechnicaV Behavioural)

\ Career development! monitoring (Source: Geeta Gwalani, "Journey to Excellence", Human Capital, Vol. 4, No.4, September 2000, p.2S)

Human Resource Management is viewed as a process of sequence of operations and activities. HRM process starts with the objectives of an organisation. HRM objectives are drawn from the organisational objectives. Similarly HRM strategies are drawn from the organisational strategies. HRM objectives and strategies, thus, form the basis for HRM process in an organisation. The first operative function or activity in the HRM process is the employment. Employment process consists various sub-processes like job design and analysis, human resource planning, recruitment, selection, placement and induction. Employment process is linked to the next process i.e., human resource development. Human resource development aspect consists of various sub processes like performance appraisal, training and development, career planning and development, promotion, transfer and demotion, absenteeism and labour turnover, organisational change and development. This aspect ofHRM process is followed by compensation which consists of job evaluation, wage and salary administration and social security and welfare benefits. Thus these three aspects of HRM process enable the employee to acquire necessary skills and contribute his human resources to achieve organisational objectives for which his/her contributions are compensated. This process, further requir~s creation and maintenance of human relation in order to enlarge and enrich employee contribution towards organisation goals. Human relations are created and maintained by motivating, enriching job satisfaction, improving morale, communicating effectively, leading the employees and by creating and maintaining healthy work environment, reducing industrial accidents and enhancing safety and health. Implementation of these aspects of HRM process results in creation of industrial relations. Industrial relation refer to the relations among employees, employer, government and trade unions. The sub processes of industrial relations include labour market, concept of industrial relations, trade unions, collective bargaining, workers' participation in management and quality circles. These sub processes

18

Human Resources Management

enable the employees al.y employer to modify HRM policies and strategies for their mutual benefit and to enhance their contribution to the organisational goals. Figure 1.6 presents the process of HRM.

Process of HRM

IObjectives and Organisation of HRM I .....v IStrategic HRM I ~ IEmployment I • Job Design and Analysis • Human Resources Planning • Recruitment, Selection, Placement and Induction Human Resourc~s Development

I

• Performance Appraisal • Training and Development • Career Planning and Development • Promotion, Transfer and Demotion • Absenteeism and Labour Turnover • Management of Change, Development and Culture Compensation Management I

I

• Job Evaluation • Wage and Salary Administration • Social Security and Welfare Human Relationst • Motivation and Job Satisfaction • Morale • Communication • Leadership • Work Environment, Industrial Accidents, Safety and Health Iindustrial Relations • Indian Labour Market • Industrial Relations • Trade Unionism • Collective Bargaining • Industrial Conflicts • Workers' Participation in Management and Quality Circles Recent Trends in HRM I • Quality of Worklife and Empowerment • Total Quality HRM • HR Accounting, Audit and Research • Recent Techniques in HRM

I

I

I

19

Human Resources Management: Fuctfons and Role

SYSTEMS AND TECHNIQUES A system is a set of comprehensive, interrelated and unified objectives and elements that interact with each other. These elements receive inputs from the external environment, process these inputs and produces the output for the external environment (See Fig. 1. 7). External

The System

r - - - - - - - -

Inputs I

I

I

~

-Syste7n- - - - - - - - -

r-----' I Transform I L

_____

~

---''---.~

Output

..

I

Environment

~--~--------------~---~

L _______ J - - - '- -

Feedback' - - -

J __ - - __ - - J

Thus, systems consist of external environmental factors like social factors, technical factors, economic factors, political factors and natural factors, inputs, transformation, output and feedback. Business organisations are regarded as open and adaptive systems which are influenced by environmental factors and also influence and shape the environment. The factors underlying business organisation as a system include: • Business organisation as a single entity composed of an interrelated subunits like production, marketing, human resources and finance. • Organisation is closely related to its environment. In other words, environment influences the organisation and the organisation also influences the environment. • System is 'input-process-output' mechanism. Organisation receives raw material from the environment, convert the raw material into products and supplies these products to the environment. ... , Information flows freely in the organisation. In addition, information flows from the external environment to the organisation system and from the organisation system to the external environment. • System integrates all its internal and external stakeholders like supplyings of inputs, employees, shareholders, customers, government, creditors, bankers, market intermediaries like wholesalers, retailers, and franchisees. • Each system consists of several subsystems. Infact each of the stakeholders form a subsystem. Thus, organisational system consists of several subsystems (See Fig. 1.8), which are closely interlinked and interrelated. These substems interact with each other closely. In fact, each subsystem is a system by itself. For example, human resource itself is a system.

20

Human Resources Management

HUMAN RESOURCE MANAGEMENT (HRM) SYSTEM Human Resource Management (HRM) as a system receives inputs from the organisation's vision, mission and strategies, employee skills and talents. HRM system processes the organisation's strategies and goals into innovative ideas, performances etc. and produces the output in the form of organisation's performance in terms of production, profit, customer service, market share, expansion, diversification and growth (See Fig. 1.9).

Figure . . . Business Organisation

External

Envir~nment/Market

HRM System

I I'" -

-

-

-

-

-

-

-

-

-

-

-

-

-

Organisation' - - - - - - - - ,

I

I

~

• Transformation

I

~

Output

• Vision

• Creative Ideas

• Performance

• Strategies

• Knowledge

• Market share

• Goals

• HR Policies

• Customer service

• Skills

• HR Practices

• Talents

• Motivation

• Profit • Expansion

• Knowledge

• Leadership

• Diversification

• Technology

• Communication

• Value addition

• Policies

+

L _ _ _ _ _ _ _ _ _ _ _

.!i\

• Strategy Implementation I

Feedback ____________ J

Human Resif)urces Management: Fuctlons and Role

21

HR:OPEN AND DYNAMIC SYSTEM Human resource system is also a open and dynamic system as it interacts not only with organisational policies, but also with the external environmental factors like cultural factors, educational facilities in the country, economic conditions and living standards of the people, government policies with regard to reservations, wage and salaries, welfare measures, political influence through trade unions and international trade policies affecting business process outsourcing and thereby employment. In fact, unlike other systems, HR interacts very closely with all other subsystems. HR is a more vibrant system as it deals with more knowledgeable living beings. HR Subsystems Each system is composed of several closely interrelated components, which are called subsystems. Similarly to other systems human resource system is also composed of various subsystems. These subsystems include employment, development, compensation, human relations and industrial relations (See Fig. 1.10). Figure

.,e,.

HR Subsystem

Each HR subsystem is again viewed as a system, which in tum consists of subsystems. Employment system consists of subsystems like job design, job analysis, HR planning, recruitment, selection, placement and induction. Development system consists of subsystems like performance appraisal, training, development, career planning, promotion, transfer, demotion, change and organisation development. The subsystems of compensation include job evaluation, wages and salaries, fringe benefits and welfare measures. Human Relations System consists of motivation, morale, communication, leadership and work environment. Industrial relations system consists of labour market, trade unions, collective bargaining, industrial conflicts, participative management and quality circles.

Human Resources Management

22

TECHNIQUES OF HRM A number of techniques are used in the process of HRM in order to achieve HRM strategies. These techniques are presented as hereunder and are discussed in detail in respective chapters.

HRM Function

Techniques

Job Design

• • •

Recruitment

• •

Selection Human Resource Development

• •

Performance Appraisal

•

Training and Development

•

Compensation

•

Engineering Approach Human Approach Job Characteristics Approach Job Rotation, Job Enlargement, Job Enrichment Promotions, transfers, present employees, scouting, Advertising, Walk-ins, Consult-in, Head-hunting, Body shopping, Business alliances, Tele-recruitment Application blank, tests, interviews Performance appraisal, training, management development, career development Graphic rating scales, ranking, paired comparison, forceddistribution, check-list, assessment centres Vestibule training, role-play, lecture, programmed instruction, job rotation, coaching, job instruction Job evaluation, salaries in comparable organisations, ability to pay, productivity, cost of living.

Line and Staff Relationships and HRM The relationship between two managers due to delegation of authority and responsibility or issuing or receiving instructions / orders is called 'line relationship'. The relationship between two managers due to offering suggestions, advice, providing information is called 'Staff relationship'. (i) Human Resources Management is a Line Responsibility: It is widely felt that "human resources management is a line manager's responsibility but a staff function." The responsibility of line managers is to attain effective goals of their respective departments by the proper management of materials, machine, money and men. Thus, management of four Ms which includes management of personnel in their respective departments is the responsibility of the line management. Since management is getting things done through and by the people, responsibility of the management of these people rests with line managers. Attaining overall organisational goals is the responsibility of the general manager through proper management of personnel and with the help of different heads of the departments. In turn, management of personnel in different departments is the responsibility of heads concerned. In the same way, first level superiors are also responsible for managing the men of their respective sections in achieving their goals. Thus, personnel management is a responsibility of all line managers. It is in this sense that every manager is a personnel manager (See Box 1.8). (Ii) Line Needs Assistance in Managing Men: In most of the organisations, Board of Directors delegate operative/technical responsibilities to managing directors and through them to the general managers. Different functional managers are delegated with the technical responsibility by the general manager. Since all these line managers have to concentrate on discharging technical/operative responsibility, they may not find time to discharge their responsibilities managing human resources. For

23

Human Resources Management: Fuctlons and Role

The CEO of Infosys says that their machines are human beings. Computers and software are tools in their hands, their finances are their employees and their employees are their human resources. In essence, all the resources

of his company are human resources. In addition, he says that all employees manage their human resources and others' human resources. Thus, all the managers are human resources managers as managing their team members is their responsibility.

example, the production manager has to concentrate on production activities and thus he may not find time to perform the various functions of personnel management relating to employees of his own department. In such a situation, the line managers require help or advice relating to personnel management of their respective departments. (iii) Human Resources Management is a Staff Function: Since the top management believes that organisational ability depends on the sound management of human resources, it provides specialised assistance to line managers through personnel managers,. Thus, personnel managers are created for the purpose of providing assistance, advice, information etc. to line managers in order to relieve them from the burden of management of personnel and to allow them to concentrate on their technical operations. Personnel managers perform the various functions of personnel management viz. employment, training, development, wage and salary administration, motivation, grievance redressal, workers' participation in management, collective bargaining etc. Thus, personnel managers perform certain staff functions relating to management of personnel like advising, assisting, guiding, suggesting, counselling and providing information to line managers. So personnel management is a staff function. However, responsibility for the management of personnel still rests with line managers. Thus, personnel management is a line management responsibility but a staff function (See Box 1.9).

Human Resources Manager, Sat yam Computers, proudly says, he performs more critical functions of: • Resources Match • Resources Allocation • Employee Development

• Employee Retention Though all the software managers manage their team members, the HR Managers perform .more critical and specialist functions ofHRM.

ROLE OF HUMAN RESOURCES MANAGER

•

Human Resources Manager plays a vital role in the modem organisation. He plays various strategic roles at different levels in the organisation. The roles of the HR Manager include roles of conscience, of a counsellor, a mediator, a company spokesman, a problem solver and a change agent. (i) Conscience Role: The conscience role is that of a humanitarian who reminds the management of its morals and obligations to its employees.

The

24

Human Resources Management

(ii) The Counsellor: Employees who are dissatisfied with the present job approach the personnel manager for counselling. In addition, employees facing various problems like marital, health, children education/marriage, mental, physical and career also approach the personnel managers. The Personnel Manager counsels and consults the etnployees and offers suggestions to solve lovercome the problems of the employees. (iii) The Mediator: As a mediator, the personnel manager plays the role of a peace-maker. He settles the disputes between employees and the management. He acts as a liaison and communication link between both of them. (iv) The Spokesman: He is a frequent spokesman for or representative of the company. (v) The Problem-solver: He acts as a problem solver with respect to the issues that involve human resources management and overall long range organisational planning. (vi) The Change Agent: He acts as a change agent and introduces changes in various existing programmes. He also performs various other roles like welfare role, clerical role and fire-fighting role as indicated in Fig 1.11.

IK'Figur'ei '• • •The Role of the Personnel Manager

The Role of the Personnel Manager Personnel Role

+

Welfare Role

~

~

Clerical Role

~

Fire-Fighting legal Role

+

(a) Advisory(a) Research in advising personnel and Management on organisational effective use of problems. human resources.

(a) Time keeping

(a) Grievance handling

(b) Manpower planningReauitrnent, Selection etc.

(b) Managing services canteens, grain shops, transport co-operatives cereals etc.

(b) Salary and wage Administration, Incentives

(b) Settlement of disputes.

(c) Training and development of linemen.

(c) Group dynamicsGroup counselling, Motivation, leadership, communication etc.

(c) Maintenance of records.

(c) Handling disciplinary actions.

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

(d) Human Engineer- (d) Collective bargaining. ing- Man Machine relationship. (e) Joint consultations.

As a Specialist The personnel department has staff relationship with other departments/managers in the total organisation. The personnel department is responsible for advising management from the Managing Director to the lowest line supervisor in all areas relating to personnel management and industrial relations.

Human Resources Management: Fuctfons and Role

25

Personnel department also performs various functions of employment, training and development. It represents the management in many of the relationships that affect the organisation as a whole. It is also responsible for representing various workers' problems to the management. Personnel department generally acts in an advisory capacity; it provides information, offers suggestions and is not responsible for the end results. The personnel manager must exercise control very tactfully in order to win the confidence and co-operation of all line managers. He has to persuade line managers to work with staff specialists and not against them. The authority of the personnel manager should derive from concrete personnel policies and programmes and from the advantages and result of accepted specialised knowledge. (I) As a Source of Help: In certain situations (when line managers lack skill or knowledge in dealing with employee problems), experienced personnel managers assume line responsibility for personnel matters. But it may be resented by the very managers who ought to seek staff assistance in meeting their personnel responsibilities. They should earn the reputation and confidence of line managers of being a source of help rather than a source of threat to line managers. Staff assistance is likely to be effective when it is wanted rather than imposed. (Ii) As a Change Agent: Personnel Manager should work as an enabler and change agent regarding personnel areas and he should be familiar with different disciplines like management, technology, sociology, psychology and organisational behaviour as organisational adaptability, viability and development are dependent on human resources development. So, the personnel manager should work as a consultant of an organisational development by providing necessary information and infrastructure to the line managers. Thus, the role of personnel managers is more concerned with providing information and offering advice to the decision-makers rather than making decisions. (iii) As a Controller: Nevertheless, it is still true that effective personnel executives advise on policies, help managers in implementing their programmes and provide services, exercise monitoring and control functions sparingly.

QUALIFICATIONS AND QUALITIES OF HUMAN RESOURCE MANAGER The functions of personnel management vary from organisation to organisation both in nature and degree. So, the qualifications required of a personnel manager differ from organisation to organisation depending on its nature, size, location etc. However, the qualifications and qualities which will be applicable in general can be summarised as follows: 1. Personal Attributes: The personnel manager, as in case of any other manager, must have initiative, resourcefulness, depth of perception, maturity in judgement and analytical ability. Freedom from bias would enable the personnel manager to take an objective view both, of the management and workers. He must thus have intellectual integrity. Moreover, the personnel manager should be thorough with labour laws. An understanding of human behaviour is essential to the personnel manager. He must be familiar with human needs, wants, hopes and desires, values, aspirations etc. without which adequate motivation is impossible. The Personnel Manager should also possess other personal attributes like: (i) Intelligence: This includes skills to communicate, articulate, moderate, understand etc., command over language, mental ability and tact in dealing with people intelligently, including the ability to draft agreements, policies etc.

26

Human Resources Management

(ii) Educational Skills: Personnel Managershould possess learning and teaching skills as he has to learn and teach employees about organisational growth, need for and mode of development ofindividuals etc. (iii) Discriminating Skills: He should have the ability to discriminate between right and wrong, between just and unjust, merit and demerit. (iv) Executing Skills: He is expected to execute the management's decisions regarding personnel issues with speed, accuracy and objectivity. He should also be able to streamline the office, set standards of performance, co-ordinate, control etc. Further, the personnel manager is expected to have leadership qualities: deep faith in human values, empathy with human problems, foreseeing future needs of employees, organisation, government, trade unions, society etc. (v) Experience and Training: Previous experience is undoubtedly an advantage provided the experience was in an appropriate environment and in the same area. Training in psychological aspects, labour legislations and more specifically in personnel management and general management is an additional benefit. Experience in an enterprise in some other executive capacity can also help towards an appreciation of the general management problems and a practical approach in meeting personnel problems. (vi) Professional Attitudes: Finally, professional attitude is more necessary particularly in the Indian context. The personnel managers' job, as in the case of other managers, is getting professionalised. He should have patience and understanding, ability to listen before offering advice. As mentioned earlier, he should have the knowledge of various disciplines like technology, engineering management, sociology, psychology, philosophy, human physiology, economics, commerce and law. He must be able to couple his social justice with a warm personal interest in people which must be secured by an uncommon degree of common sense. (vii) Qualifications: Qualifications prescribed for the post of Personnel Manager vary from industry to industry and from State to State. These qualifications have been undergoing several changes from time to time. However, the qualifications prescribed by various organisations include MBA with Human Resources Management Specialisation, M.H.R.M, M.A.(IR&PM), M.P.M and P.G.D.P.M.

DUTIES AND RESPONSIBILITIES OF HUMAN RESOURCE MANAGER Human Resource Manager is responsible for efficient management and utilisation of human resources in the process of achieving organisational objectives, group goals and goals of individual employees. In this process human resource manager offers suggestions and advise to all other managers in the organisation, in addition to providing all necessary arrangements. Duties and responsibilities of human resource manager include: • Preparing, modifying and up-dating job analysis including job description and job specifications as desired by various line managers. • AdviSing the line managers regarding the latest developments in job analysis like role analysis, broad jobs, dejobbing and the like. • Helping the line managers in planning for human resources and finalising the human resource plans submitted by various line managers.

Human Resources Management: Fuctlons and Role

27

• Advising the line managers regarding the impact of multiskilling, down-sizing and de-layering on human resource planning. • Searching for the prospective employees at various sources and motivating them to apply for jobs in the company. • Identifying employment agencies and entrusting recruitment function to them, if it is economical and desirable. • Conducting various selection tests and interviews and helping the line managers in selecting the right candidates for various jobs. • Conducting the induction programmes to the new employees and placing the employees in right jobs. • Helping the line managers in identifying the training needs of employees from time to time. • Organising the training and management development programmes in collaboration with line managers and external organisatinns. • Fixing and administering the salaries and employee benefits in consultation with line managers. • IntrodUcing various techniques to motivate the employees and also guiding the line managers in this aspect. • Preparing the employees in quality improvement programmes. • Maintaining close and sound relations with individual employees, employee groups, trade unions, Government and the like. • Conducting collective and individual bargaining meetings to solve employee problems and prevent industrial disputes. • Administering employee benefit programmes. • Encouraging the employees to form into teams and develop team culture. • Assisting the line managers in organising for promotions, transfers and demotions. • Conducting surreys and research studies regarding job satisfaction, morale, salary and benefits levels, productivity, employee contributions, employee regularity and advising the management based on with research findings. • Advising, assisting and contributing in formulation and implementation of corporate level and other level strategies. • Maintaining and enhancing sound human relations.

TYPICAL ORGANISATION SET UP OF HUMAN RESOURCE DEPARTMENT Human resource department maintains staff relations with other departments and it has line line relations within itself. Human resource departments in various organisations have different units as shown in Figure 1.12. These departments include employment unit, human resource development unit, salaries and welfare unit, and industrial relations units. The human resource department is normally headed by Chief Human Resource Manager who is assisted by Employment Manager, Human Resource Development Manager, Salaries and Welfare Manager and Industrial Relations Manager.

28

Human Resources Management

t.

Figure • •

Organisation Structure of Human Resource Department

Managing Director

.I l Chief Manager Marketing

Chief Manager Human Resources

Chief Manager Production

Chief Manager Finance

Manager Salaries & Walfare

Manager Industrial Relations

I Manager Employment

Manager Human Resources Development

"

I Assistant Manager Performance Appraisal

Assistant Manager Training

Assistant Manager Management Development

Assistant Manager Career Planning & Development

Employment Manager is assisted by Assistant Managers incharge ofjob design and analysis, human resource planning, recruitment and selection. Human Resource Development Manager is assisted by Assistant Managers incharge of Performance Appraisal, Training, Management Development, Career Planning and Development. Salaries and Welfare Manager is assisted by Assistant Managers in charge of Managerial Compensation, employee salaries, canteen, hoUSing, conveyance and the like. Manager Industrial Relations is assisted by Assistant Managers incharge of Union Relations, collective bargaining, grievance handling and workers' education. All these managers work as a team and help in managing human resou(ces of an organisation, most efficiently.

EVOLUTION AND DEVELOPMENT OF HRM The history of development of personnel management in India is comparatively of recent origin. But Kautilya had dealt with some of the important aspects of human resources management in his "Arthasastra," written in 400 B.C. Government in those days adopted the techniques of H.R.M. as suggested by Kautilya. In its modern sense, it has developed only since independence. Though the importance of labour officers was recognised as early as 1929, the appointment of officers to solve labour and welfare problems gained momentum only after the enactment of the Factories Act of 1948. Section 49 of the Act required the appointment of Welfare Officers in companies employing more than 500 workers. At the beginning, Government was concerned only with limited aspects of labour welfare. The earliest labour legislation in India dealt with certain aspects of Indian labourers (Regulation of Recruitment, Forwarding and Employment) sent to various British colonies in 1830. Important phases of evolution of HRM are presented in Exhibit 1.2.

29

Human Resources Management: Fuctfons and Role Exhfbftl.2 EVOLUTION OF HRM IN INDIA Period

Development Status

1920s1930s

Beginning

Pragmatism of capitalists

Statutory, welfare paternalism

Clerical

1940s 1960s

Struggling for recognition

Technical, legalistic

Introduction of Techniques

Administrative

1970s -

Achieving

Professional,

Regulatory, conforming, imposition of

Managerial

1980s

Sophistication Promising

Legalistic, impersonal

Standards on other functions

Philosophical

Human values, productivity through people

1990s

Outlook

Emphasis

Status

Executive

(Sources: C.S. Venkataratnam and B.K. Srivastava, Personnel Management and Human Resources, Tata Mc-Graw Hill, New Delhi, 1991, p. 5.)

The important aspects of development of human resources management in India are shown in the Exhibit 1.3. Exhfbftl.3

DEVELOPMENT OF HRM IN INDIA

Year 1860

Nature o/Development

Employers' and Workmens' (Disputes) Act was passed. This Act was penal in character, laying down criminal penalties for breach of contract. 1881 to 1891 Factories Acts of 1881 and 1891 were passed showing concern for workers' welfare. These Acts were limited to working hours of women and children. 1863 to 1901 The Assam Labour Acts passed between 1863-1901 were concerned with migration of labour. 1890 First Labour Organisation, Le., Bombay Mill Hands' Association was established. 1901 The Mines Act, concerned with the :.afe working conditions in the Mines was passed in 1901. 1905 The Printers' Union was established in Kolkata. 1907 The Postal Union was established in MumbaL 1907 Fact Labour Commission submitted its report to the Government of India. 1911 Factories Act, 1911 was passed consequently upon the Report of Factory Labour Commission, 1907.

Human Resources Management

30 Year 1915 1918 1919 1920

1922

1923 1924 1926

1928 1929

1934 1935

1936 1937 1938 1939 1940

1942

1943 1946 1947

Nature ojDeve[opment Calico Mills in Ahmedabad provided welfare facilities by appointing a doctor and a nurse. Massive industrial unrest prevailed following the end of World War I. The All India Trade Unions Congress (AITUC) was formed. Mahatma Gandhi inaugurated the Union ofThrostie Department workers. This Union later became the Ahmedabad Textile Labour Association. An All India Industrial Welfare Conference was conducted by Social Service League in Bombay. Representatives of the Government and employers attended the meeting. Subjects discussed were workers' education, sanitation, child welfare, trade unionism, housing etc. Strikes were organised when employers tried to reduce wages as a measure to reduce cost of living. Workmen's Compensation Act was passed. Strikes were organised in Cotton Mills in Bombay against the management's decision to withhold the annual bonus due to trade depression. Indian Trade Unions Act was passed with a provision of voluntary registration of the Unions basing on certain requirements and giving certain legal protection to officers and members of the Unions. Strikes were organised for nearly 5 months in Jamshedpur as a consequence of retrenchment of workers. Labour Officers were appointed at the main oil installations in Bombay and Calcutta to take complete charge of all matters of labour like recruitment, promotion, discipline, retirement etc. The Bombay Trade Disputes Conciliation Act was passed. Bombay Mill Owners' Association reported to the Government that Government Labour Officer together with the Association Labour Officer was successful in improving industrial relations. The Payment of Wages Act (regulating the deductions from wages) was passed. Provincial Labour Legislations were passed in Bombay. For example, Bombay Industrial Disputes Act, Maternity Benefits Act in Bengal etc. Bombay Mill Owners' Association published a booklet called "Recommendations of Labour Matters". Industrial Code under Bombay Industrial Disputes Act was constituted to settle the dispute under the standing procedure. Government of India convened Labour Ministers' Conference which continued ever since with the representatives of employers and employees. Tata School of Social Work started in 1940 is providing training in social welfare. Tripartiate Labour Conference representing Government, employees and labour became a regular feature of labour policy (Indian Labour Conference). Tripartite Labour Conference recommended the setting up of a machinery to enquire into wages and earnings, employment, housing and social conditions. Report was submitted by Indian Labour Conference. Industrial Disputes Act was passed. Functions of Labour Officer were elaborated covering the recruitment and selection of unskilled labourers.

Human Resources Management: Fuctlons and Role Year

31

Nature of Development

Factories Act was enacted. The Employment Exchange (Compulsory Notification of Vacancies) Act was passed. The Maternity Benefit Act and the Apprentice Act were passed. An ordinance for regulating payment of bonus was issued in May 1965 and was later replaced by the Payment of Bonus Act, 1965 in September of that year. National Commission on Labour submitted its report. 1969 The Contract Labour (Regulation and Abolition) Act was passed. 1970 Payment of Gratuity Act was passed. 1972 1972 to 1976 ILC did not meet during this period. 1980 Bonus was announced under Productivity Unked Bonus Scheme to the employees working in departmentally run Public Sector Undertakings like Indian Railways, Posts and Telegraphs. 1985 Ministry of Human Resources Development was set up in the Union Cabinet - Many organisations have started changing their personnel department as Departments of HRM and created HRD Departments. 1987 Emphasis has been shifted to various modern techniques of HRM. 1995 Emphasis has been shifted to human resources development (HRD). 1998 Emphasis on HRD, cultural diversity, teamwork and participative management has been continuing. Further, the emerging areas are total quality in management in HRM, empowering the employees and developing empowered teams and integrating HRM with strategic management as the top management realised that HRM is the core of competencies of the 21st century corporations. 2000 Emphasis is shifted towards empowerment of employees. 2001 Emphasis is on 'smart sizing of the organisations'. 2002 More emphasis is laid on the positive attitude of the candidate rather than skill and knowledge, shift from intelligence quotient to emotional quotient. 1948 1959 1961 1965

RECENT DEVELOPMENTS IN HRM Recent developments in the area of human resources management include: • Treating the employees as economic, social, psychological and spiritual men and women. • Shift in the concept from Labour Management to Personnel Management and Personnel Management to Human Resources Management. • Significance is shifted from skilled employees to knowledgeable employees. • The most important aspects of human resources is also shifted from skill and expertise to positive attitude. • Organisation design is shifted from hierarchical structure to flat and flexible structure. • Significance of the function of controlling is getting decelerating as the application 'feed forward' has been increasing as the companies started performing perfectly at the first time itself. • Significance of the functional areas of management is now centred around 'Human Resources' .

32

Human Resources Management

Questions for Discussion 1. The personnel manager is being paid by the management. Is he therefore a representative of the management or personnel. Discuss in detail. 2. Describe in brief the nature and scope for personnel function in an organisation. What are the indicators of its working in an organisation? 3. Differentiate the ~erms personnel from human resources. What is Human Resources Management? Analyse the more comprehensive definition of Human Resources Management. 4. "Objectives of the personnel management always contradict the objectives of the personnel." Elucidiate the statement. 5. What is personnel policy? Describe the important personnel policies that affect the job of a personnel manager. 6. How does personnel function change as the firm grows in size? Briefly describe each stage of development. 7. Identify and discuss the managerial and operative functions of personnel management. 8. "Personnel Manager's position in the company does not determine his voice in policy-making on personnel matters." Discuss. 9. Describe some of the problems that have often been characteristic of human resources departments in the past. 10. What changes in society and within organisations have been instrumental in reshaping the personnel role? 11. "Personnel management is a basic management pertaining to all levels and types of management." Discuss. 12. "The objective of personnel management in an organisation is to attain maximum individual development, desirable working relationship between employers and employees and effective inclusion of human resources as contrasted with physical resources." Elucidate. 13. "Personnel administration is a line responsibility but a staff function." Discuss. 14. What is line and staff. Explain the sources of conflict between line and staff. 15. Explain the qualities and qualifications necessary for a personnel manager. 16. Compare critically the organisation charts of personnel departments of two or three companies with model charts discussed in ,he book.

17. Explain the process, systems and techniques of HRM. 18. Discuss the duties and responsibilities of human resource manager.

2

Human Resources Planning, Recruitment, Selection and Placement

Meaning and Objectives of Human Resource Planning - Importance, Benefits of Human Resource Planning - Process of Human Resource Planning - Recruitment: Meaning, Methods - Selection: Meaning, Methods, Uses of Tests in Selection - Placement: Meaning, Problems involved, How to make Effective? - Questions for Discussion.

MEANING AND OBJECTIVES OF HUMAN RESOURCES PLANNING In simple terms, human resource planning means deciding the number and type of the human resources required for each job, unit and the total company for a particular future date in order to carryout organisational activities. E.W. Vetter viewed human resources planning as "a process by which an organisation should move from its current manpower position to its desired manpower position. Though planning management strives to have the right number and right kind of people at the right place at the right time, doing things which result in both the organisation and the individual receiving maximum long-run benefit." According to Leon C. Megginson, human resources planning is "an integrated approach to performing the planning aspects of the personnel function in order to have a sufficient supply of adequately developed and motivated people to perform the duties and tasks required to meet organisational objectives and satisfy the individual needs and goals of organisational members." Human resources planning may be viewed as foreseeing the human resources requirements of an organisation and the future supply of human resources and (i) making necessary adjustments between these two and organisational plans and (ii) foreseeing the possibility of developing the supply of human resources in order to match it with requirements by introdUcing necessary changes in the functions of human resources management. In this definition, human resources means skill, knowledge, values, ability, commitment, motivation etc. in addition to the number of employees.

Objectives of Human Resources Planning The important objectives of manpower planning in an organisation are: (i) to recruit and retain the human resources of required quantity and quality; (ii) to foresee the employee turnover and make the arrangerr.ents for minimising turnover and filling up of consequent vacancies; (iii) to meet the needs of the programmes of expansion, diversification etc.; (iv) to foresee the impact of technology on work, existing employees and future human resource requirements; (v) to improve the standards, skill, knowledge, ability, discipline etc.; (vi) to assess the surplus or shortage of human resourCeS and take measures accordingly; (vii) to maintain congenial industrial relations by maintaining optimum level and structure of human resources; (viii) to minimise imbalances caused due to non-availability of human

34

Human Resources Management

resources of the right kind, right number in right time and right place; (ix) to make the best use of its human resources and (x) to estimate the cost of human resources.

IMPORTANCE OF HUMAN RESOl)RCE PLANNING Planning for human resource is more important than planning for any other resource as demand for the latter depends upon the size and structure of the former whether it is in a country or in an industry. Further, management of human resource hardly begins from human resource planning. In fact, it is the basis for most of the other functions. Human resource plan evaluates and even modifies organisation's strategic plan. It provides the clear picture of human resource supply from various sources and enables the organisation to recruit the prospective employees from the most suitable source. Thus, it helps the organisation to implement its strategies effectively without risks and uncertainties. The rapid changes in technology, marketing, production, business processes and management practices due to globalisation and information technology demand ever changing skills on the part of human resources. This process creates gulf without human resource plan. In addition, the changing business processes and consequent strategic alliances result in changes in organisation structure affecting manpower demand. Human resource plan plays an important role in projecting these events and preventing uncertainties in having right size of human resource. The demographic changes like the changing profile of work force, in terms of age, sex, education etc. and changes in government policies in respect of reservations, child labour, working conditions etc., affect the demand for and supply of human resource. Similarly changes in labour laws, pressure from trade unions and political parties influence the demand for and supply of human resources. Human resource plan predicts these changes and make necessary adjustments in meeting human resource requirements of an organisation. Thus, human resource plan plays an important role in having right human resources in right time in the process of achieving organisational strategies and objectives.

BENEFITS OF HUMAN RESOURCES PLANNING Human Resources Planning (HRP) anticipates not only the required kind and number of employees but also determines the action plan for all the functions of personnel management. The major benefits of human resources planning are: • It checks the corporate plan of the organisation. • It offsets uncertainty and change. But the HRP offsets uncertainties and changes to the maximum extent possible and enables the organisation to have right men at the right time and in the right place. • It provides scope for advancement and development of employees through training, development etc. • It helps to anticipate the cost of salary enhancement, better benefits etc. • It helps to anticipate the cost of salary, benefits and all the cost of human resources, facilitating the formulation of budgets in an organisation. • To foresee the need for redundancy and plan to check it or to provide alternative employment in consultation with trade unions, other organisations and the government through remodelling organisational, industrial and economic plans.

Human Resources Planning, Recruitment, Selection and Placement

35

• To foresee the changes in values, aptitude and attitude of human resources and to change the techniques of interpersonal management etc. • To plan for physical facilities, working conditions and the volume of fringe benefits like canteen, schools, hospitals, conveyance, child care centres, quarters, company stores etc. • It gives an idea of the type of tests to be used and interview techniques in selection based on the level of skills, qualifications, intelligence, values etc. of future human resources. • It causes the development of various sources of human resources to meet the organisational needs. • It helps to take steps to improve human resources contributions in the form of increased productivity, sales, turnover etc. • It facilitates the control of all the functions, operations, contribution and cost of human resources.

PROCESS OF HUMAN RESOURCES PLANNING Process of Human Resources Planning consists of the following steps: • Analysing the corporate and unit level strategies. • Demand Forecasting: Forecasting the overall human resources requirements in accordance with the organisational plans. • Supply Forecasting: Obtaining the data and information about the present inventory of human resources and forecast the future changes in the human resources inventory. • Estimating the net human resources requirements. • In case of future surplus, plan for redeployment, retrenchment and lay-off. • In case of future deficit, forecast the future supply of human resources from all sources with reference to plans of other companies. • Plan for recruitment, development and internal mobility if future supply is more than or equal to net human resources requirements. • Plan to modify or adjust the organisational plan if future supply will be inadequate with reference to future net requirements. The eight steps of human resources planning are depicted in Fig. 2.1 in the order mentioned above. But the same order need not be followed in the actual planning process as the steps are interdependent and sometimes, the first step and the last step may be processed simultaneously. Further, the planner sometimes may not explicitly process some steps. However, it is helpful to the planner to plan for human resources effectively without any complications if he/she has an idea about all steps of HRP. These steps are discussed in detail as given below.

Analysing the Corporate and Unit Level Strategies As indicated earlier, HRP should start with analysing corporate level and unit level strategies. These strategies include expansion, diversification, mergers, acquisitions, reduction in operations, low cost and differentiation. Strategic implementation requires the production implementation, technological implementation, marketing implementation and human resources implementation. Human resources implementation essentially requires possessing the required number and kind of employees. This in turn requires human resources plan.

Adjust or Modify the Strategies

(1)

Human Resource Planning Model

Analysing Corporate Level and Unit Level Strategies

Il Control and Review ~ Mechanisms (3)

(2)

Demand Forecast Resource Requirements Skillwise Knowledgewise etc.

!

Supply Forecast Present Inventory of Human Resources + Additions Losses (Skillwise Knowledgwise etc.)

Minus

(4)

Net Human Resources Requirements for Future (Skill, Knowledge, Values, etc.)

f----t

(5)

(7)

Surplus of Future Available Human Resources within the Organisation Plan for (6)

+

Redeployment

Rod:" Hours

I

Work Sharing

+

(9)

Forecast the Future Supply of Human Resource in all Sources if Supply is Inadequate

Shortage of Future Available Human Resource within the Organisation

J

Plan for (8)

Retrenchment' Redundancy

Lay-off

(10)

t

I I

Leave of Absence without pay

VRS

+

Out-Sourcing

+

Attrition

Golden Hand Shake

+

Employment

"

CRS/Iron Hand Shake

+

Training

+

Development

•

Internal Mobility

37

Human Resources Planning, Recruitment, Selection and Placement

Demand Forecasting of the Overall Human Resource Requirements The existingjob design and analysis may thoroughly be reviewed keeping in view the future capabilities, knowledge and skills of present employees. Further, the jobs should be redesigned and reanalysed keeping in view the organisational and unit-wise plans and programmes, future work quantum, future activity or task analysis, future skills, values, knowledge and capabilities of present employees and prospective employees. The jobs generally should be designed and analysed reflecting the future human resources and based on future organisational plans. Job analysis and forecasts about the future components of human resources facilitate demand forecasting. One of the important aspects of demand forecasting is the forecasting of the quality of human resources (skill, knowledge values, capabilities etc.) in addition to quantity of human resources. Important forecasting methods are: (i) Managerial Judgement: Under this method, managers decide the number of employees required for future operations based on their past experience.

(ii) Statistical Techniques Include: ratio-trend analysis and econometric models. Under ratio trend analysis, ratios are calculated for the past data and these ratios are used for the estimation of the future human resources requirements. For example:

• • • • •

Present level of production (1-1-2008): Presentnumberofforemen (1-1-2008): Ratio is 2000 + 4 Estimated production as on (1-1-2010): Foreman required as on 1-1-2010:

2000 units 4 500 5000 units 5000 + 500= 10

Econometric models for HRP are built up by analysing the past statistical data and by bringing the relationship among variables. (iii) Work Study Techniques: Under this method, total production and activities in terms of clear units are estimated in a year. Then man-hours required to produce each unit is calculated. Later, the required number of employees is calculated. For example:

• • • •

•

Planned operations during2010 Standard manhours needed to perform each unit in 2010 Planned manhours needed per year in 2010 Work ability per employee in manhours in the year 2010

=

1,60,000 units

= =

0.25 40,000

=

2,000

Number of employees required in2010

=

40,000 20000 ,

= 20

Supply Forecasting The first step of forecasting the future supply of human resources is to obtain the data and information about the present human resources inventory.

Existirtg Inventory: The data relating to present human resources inventory in terms of human resources components, number, designation-wise and department-wise should be obtained. Principal dimensions of human resources inventory are: (i) Head counts regarding total, department-Wise, sex-wise, designation-wise, skill-wise, pay roll-wise etc.

38

Human Resources Management (ii) Job Family Inventory: It includes number and category of employees of each job family, i.e. all

jobs related to the same category like clerks, cashiers, typists, stenos etc., each sub-job family, i.e. all jobs having common job characteristics (skill, qualification, similar operations) like production engineer (mechanical) and maintenance engineer (mechanical) and broad job families like general administration, production etc. (iii) Age Inventory: It includes age-wise number and category of employees. It indicates age-wise imbalance in present inventory which can be correlated in future selections and promotions. Existing inventory at a future date is calculated as follows: Existing Inventory Present at a future date Inventory Potential Potential Jfuture supply of == as on losses + additions . 'human resources) to-day

Estimating the Net Human Resources Requirements Net human resources requirements in terms of number and components are to be determined in relation to the overall human resources requirements (demand forecast) for a future date and supply forecast for that date. The difference between overall human requirements and future supply of human resources is to be found out. This difference is the net human resource requirements.

Action Plan for Redeployment, Redundancy/Retrenchment If future surplus is estimated, the organisation has to plan for redeployment, redundancy etc. If surplus is estimated in some jobs/departments, employees can be redeployed in other jobs/departments where the deficit of employees is estimated. The organisation should also plan for training or reorientation before redeployment of employees. Redeployment takes place in the form of transfers. If the deficit is not estimated in any job/department and surplus is estimated for the entire organisation, the organisation, in consultation with the trade unions, has to plan for redundancy or retrenchment.

Redeployment Programmes The receployment programmes are as follows: • Outplacement: Outplacement programmes also intended to provide career guidance for displaced employees. This programme covers retraining the prospective displaced employees who can be redeployed elsewhere in the organisation, helping in resume writing, interview techniques, job searching etc. (See Box 2.1). • Employment in the Sister Organisations: The surplus employees are offered employment ;n

sister organisations either at the similar level or at the lower level under the same management. This programme is undertaken when the jobs are vacant in the sister organisations. • Employment in other Companies: Under this programme, the HR manager contacts other similar companies for possible hiring of the surplus employees. If the vacancies are available in other companies, the HR manager helps the surplus employees in getting employment (See Box 2.2).

Redundancy / Retrenchment Programmes The redundancy/retrenchment programmes include: • Reduced Work Hours: Under this technique, each worker works less hours and receives less pay, so that the jobs are saved.

Human Resources Planning, Recruitment, Selection and Placement

39

Household International Inc., has introduced The system involves comprehensive career an employee-placement programme to . counselling with concerned employees, reduction in interview skills, guidelines on resumecounter the problem of staff reductions. writing and job hunting skills, to help them in A committee comprising of HR directors from all group companies, gather for monthly their search for a new position, both internally meetings to match up job openings with the and externally. people whose positions are due to be elimi- The success rate of the programme has been very high. This programme has made the comnated. The emphasis is on employee potenpany a stronger organisation. tial, not previous experience. (Source: 'Benchmarking HR', Human Capital, Vo1.3, No.6, p.18).

Washington,D .C. based Harman International-a leading manufacturer of high-quality audio and video products employs 8,000 people worldwide. Instead of downSizing, Harman created a job bank of projects that assemble workers who could be temporarily redeployed to work on until demand for their labour picked up again in their original

jobs. Workers are assigned to temporary positions while retaining their original wages. HR is a visible player throughout the redeployment process. HR identifies temporary projects and works with live managers to · understand required skills sets. HR also manages training programmes to prepare workers for new assignments.

(Source: Benchmarking HR, "Human Capital, Vo1.3, No.6, p .17).

• Work Sharing: Some organisations offer employees the opportunity to share jobs or two employees work half time each. This technique solves the problem of retrenchment in the short run. • Layoffs: Layoffs can be temporary or permanent. Temporary layoffs are due to the slackness in business, machinery breakage, 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. Proper human resources planning and leveling the workforce at proper level can help to reduce this effect. • Leave of Absence without Pay: This technique helps the company to cut the labour cost and the employee to pursue his self interest. This technique also helps the company to plan for eliminating the unnecessary job in a phased manner. This concept serves as a productive method to help employees prepare for future changes. Syndicate Bank introduced this technique to reduce the problem of excess staff. • Voluntary RetirementlEarly Retirement: Another issue is early retirement. Government of India introduced Voluntary Retirement Scheme (VRS) under the caption 'Golden Handshake' in order to solve the problem of overstaffing in the public sector. Managements provide cash reward to those employees who opt for VRS in addition to normal retirement benefits. Hence this is also called golden handshakeThis technique solves the problem of excessive supply of future inventory over the demand for human resources.

40

Human Resources Management

• Attrition: Attrition is the process whereby as incumbents leave their jobs for various reasons, those jobs will be kept vacant or unfilled. Attrition, hiring freezes or ban on employment can be implemented organization-wise, department-wise orjob-wise. Indian Railways, other Public Sector units and Universities have been following this technique to reduce the problem of overstaffing. • Compulsory Retirement/lron Handshake: Under this programme, the HR manager, with the help of the line manager, identifies surplus employees and discharges them from the service. Managements do not provide any cash or non-cash benefits to the employees other than normal retirement benefits at the time of discharging or firing. As such, it is called iron hand shake. • Creation of Ad-hoc Projects: Some companies create ad-hoc projects in order to provide employment to the surplus staff for a short span of time (See Box 2.3).

Forecast Future Supply from All the Sources If deficit is estimated in any department and in the entire organisation, management has to forecast the future supply of human resources from various sources like internal sources, comparable organisations, educational and training institutes, employment exchanges, labour market etc.

Action Plan for Outsourcing, Recruitment etc. If the fr.recast relating to future supply of manpower from internal sources of the organisation shows favourable trends, the management may prefer internal candidates and plan for their promotion, transfer, training and development. If suitable candidates are not available from internal sources, and the forecasts relating to future supply from external sources indicate the availability of required human resources, then plan for outsourcing, recruitment and selection. The promotion plan includes establishing of the ratio of internal promotion to external recruits, basis for promotion, promotional channel, reservations in promotions etc. The transfer plan includes channel, company rules regarding organisation initiated transfers and employee initiated transfers.

Outsourcing Plan: Many professional organisations have been performing the outsourcing function. These organisations employ human resources of different categories and supply them or lease them to various companies. These companies can avail the services as and when they need and pay the commission to the outsourcing organisation. This system is more or less like getting a machine for use on a lease basis. Outsourcing is more prominent in the information technology industry. The advantages of outsourcing include: • The companies need not plan for human resources. • The companies can get human resources immediately. • The companies need not manage these resources as such they are free from industrial relations problems. • The companies can dispense with this category of employees immediately after the work is over. Recruitment and Selection Plan: Recruitment and selection plan covers the number and type of employees required, when they are required for the job, time necessary for recruitment and selection process, recruitment sources, recruitment techniques to be used, selection procedure to be adopted and selection techniques to be used to subsequently recruiting the required candidates. It also covers the time factor for induction, preliminary training and placement.

Human Resources Planning, Recruitment, Selection and Placement

41

Training and Development Plan The training and development plan covers areas to be developed, training techniques, training . programmes, training time, availability of trainers, in plant training or institute training, new courses to be developed or changes in the existing courses, cost benefit analysis of training, development of the employees and matching of their improved skills with future job requirements etc.

Productivity Plan The productivity plan includes maximisation of productivity or minimisation of labour cost per unit of output through technological changes, improving/streamlining methods, procedures and systems, productivity bargaining, training, financial incentives, developing various schemes, motivation, commitment, organisation development programmes, job enrichment/enlargement, participation etc. It also includes improving of productivity efficiency.

Retention Plan Though there is the problem of unemployment, organisations experience shortage of some categories of employees and some organisations experience shortage of some other categories of employees due to employee mobility. Hence, the organisations have to plan for retention of the existing employees.

Modify the Organisational Plan Strategy If future supply of human resources from all the external sources is estimated to be inadequate or less than the requirements (share of the particular firm in labour market), the manpower planner has to suggest to the management to alter or modify the organisational plan. (See Box 2.3).

Organisational plan of Indian Railways indicates that computerisation should be completed in all the stations and offices by 1991 and the estimations of future supply of human resources show that the supply of computer professionals would be less than the human resources requirements from all the

sources even by 1991. The railways modified their organisational plan by extending the period of computerisation by some more time when the supply of human resources available to the railways will be equal or greater than the requirements of human resources.

In view of the shortage of certain categories of employees, the organisation has to take care not only of recruitment but also the retention of existing employees.

PROBLEMS IN HUMAN RESOURCES PLANNING Though HRP is beneficial to the organisation, employees and trade unions, some problems crop up in the process of HRP. Important among them are: (I) Resistance by Employers and Employees: Many employers resist HRP as they think that it increases the cost of manpower as trade unions demand for employees based on the plan, more facilities and benefits including training and development. Further, employers feel that HRP is not necessary as candidates are/will be available as and when required in India due to the growing unemployment situation.

42

Human Resources Management

Employers' versions may be true with unskilled and clerical staff but it is not true in the case of all other categories as there is shortage for certain categories of human resources. Trade unions and employees also resist HRP as they view that it increases the workload of employees and prepares programmes for securing human resources mostly from outside. The other reason for their resistance is that HRP aims at controlling the employees through productivity maximisation etc. (ii) Uncertainties: Uncertainties are quite prominent in human resources practices in India due to absenteeism, seasonal employment, labour turnover etc. Further, the uncertainties in the industrial scene like technological change and marketing conditions also cause imperfections in human resources planning. The uncertainties make HRP less reliable. (iii) Inadequacies of Information System: Information system regarding human resources has not yet fully developed in Indian industries due to low status given to personnel department and less importance attached to HRP. Further, the reliable data and information about the economy, other industries, labour market, trends in human resources etc. are not available.

RECENT IMPLICATIONS Most of the organisations, before the 1990s employed human resources without human resources planning. This was more acute in the public sector whose objective was creation of employment opportunities. The absence of human resources planning before 1990s led to the following implications in Indian companies. (i) Overstaffing: Most of the organisations are found to be overstaffed compared to their

counterparts in other countries. Oi) VRSIGolden-handshake: The absence of human resources planning led to overstaffing. Consequently, most of the organisations announced VRS/Golden-handshake programmes in order to reduce the consequences of overstaffing. (iii) Delayering and Downsizing: Most of the organisations delayered their organisations and announced down sizing programmes to rectify the consequences of overstaffing. Now, we shall discuss the recent trends in HRP.

RECENT TRENDS IN HRP • • • •

Outsourcing: Most of the organisations started to plan for outsourcing human resources rather than HRP in order to:

reduce the cost of human resources avoid the difficulties in human resources management and reduce the negative implications of overstaffing. Many organisations outsourced the canteen, housekeeping, sales, book-keeping, accounts receivables and employee welfare operations. • Contingency clause in HRP: Most of the software companies have been implementing time bound projects. Similarly, fast delivery has been the vital strategy of many manufacturing companies. Hence, most of these companies plan for contingency human resources in order to e.lsure that no project is delayed due to human factor (See Box.2.4) .

Human Resources Planning, Recruitment, Selection and Placement

Mr.Syam Sunder, the HR manager of Software Solutions Integrated Limited, expressed that 90% of the total human resources of many software companies are recruited to meet the contingency situations. In fact, the employee turnover rate in software industry is as high as

43

80%. All the projects of the software industry are strictly time-bound. As such, these companies employ the staff much more than required. The HR manager of those companies, when their employee turnover is very high, should include the contingency clause in their HRP.

Conclusion Human resources planning is a vital sub-activity of the employment function in an organisation. Infact, employment process begins with human resources planning, but it never ends with this function. It pervades through a number of activities after the process of human resources planning. Those activities include searching for prospective human resources, attracting them to the work and/or organisation, finding out their suitability to the job and organisational requirements and finally taking steps to absorb those human resources as potential organs of the company. Now, we shall discuss the next logical function of HRM i.e. Recruitment and Selection.

RECRUITMENT Once HIe required number and the kind of human resources are determined, the management has to find the places where required human resources are/will be available and also work out strategies for attracting them towards the organisation before selecting suitable candidates for jobs. This process is generally known as recruitment. Some people use the term 'recruitment' for emplQyment. These two are not one and the same. Recruitment is only one of the steps in the entire employment process. Some others use the term recruitment for selection. These two terms are different. Technically speaking the function of recruitment precedes the selection function and it includes only finding, developing the sources of prospective employees and attracting them to apply for jobs in an organisation, whereas the selection is the process of finding out the most suitable candidate to the job out of the candidates attracted (i.e., recruited). Formal definition of recruitment would give clear cut idea about the function of recruitment. Now, we shall study recruitment in the following lives.

Meaning of Recruitment Recruitment is defined as "a process to discover the sources of manpower to meet the requirements of the staffing schedule 'and to employ effective measures for attracting that manpower in adequate numbers to facilitate effective selection of an efficient workforce." Edwin B. Rippo defined recruitment as "the process of searching for prospective employees and stimulating thzm to apply for jobs in the organisation." These definitions can be analysed by discussing the processes of recruitment through systems approach.

Objectives of Recruitment The objectives of recruitment are: (i) to attract people with multi-dimensional skills and experiences that suit the present and future organisational strategies,

44

Human Resources Management (ii) to induct outsiders with a new perspective to lead the company,

(iii) to infuse fresh blood at all levels of the organisation, (iv) to develop an organisational culture that attracts competent people to the company, (v) to search or head hunt/head pouch people whose skills fit the company's values, (vi) to devise methodologies for assessing psychological traits, (vii) to seek out non-conventional development grounds oftalent,

(viii) to search for talent globally and not just within the company, (ix) to design entry pay that competes on quality but not on quantum,

(x) to anticipate and find people for positions that do not exist yet.

Recruitment Process Having discussed the meaning and objectives of recruitment, now we shall discuss the recruitment process.

Centralised Vs. Decentralised Recruitment Recruitment practices vary from one organisation to another. Some organisations like commercial banks resort to centralised recruitment while some organisations like the Indian Railways (for Group III and Group IV positions) resort to decentralised recruitment practices. Personnel department at the central office performs all the functions of recruitment (discussed earlier) in case of centralised recruitment and personnel departments at unit leveVzonai level perform all the functions (discussed earlier) of recruitment concerning to the jobs of the respective unit or zone.

METHODS OF RECRUITMENT After understanding the company strategies and recruitment policy, the HR manager has to search for the candidates who can contribute for the achievement of the company's strategies. He has to search for the candidates in various sources viz. traditional sources of recruitment and modem sources of recruitment. Now, we shall discuss these sources.

Traditional Methods of Recruitment The methods of recruitment are broadly divided into internal methods and external methods. Internal methods are the sources within organisational pursuits. External methods are sources outside organisationd pursuits (See Fig. 2.2). Internal Methods: Internal sources include: (i) Present permanent employees, (ii) Present temporary/casual employees, (iii) Retrenched or retired employees and (iv) Dependents of deceased, disabled, retired and present employees. (i) Present Permanent Employees: Organisations consider the candidates from this source for higher level jobs due to: availability of most suitable candidates for jobs relatively or equally to the external source, to meet the trade union demands and due to the policy of the organisation to motivate the present employees. (ii) Present Temporary or Casual Employees: Organisations find this source to fill the vacancies relatively at the lower level owing to the availability of suitable candidates or trade union pressures or in order to motivate them on the present job.

45

Human Resources Planning, Recruitment, Selection and Placement

Methods of Recruitment

I

Methods of Recruitment

I

Traditional Sources

I

I

I

Internal -

-

-

-

Present Permanent Employees Present Temporary/ Casual Employees Retrenched! Retired Employees Dependents of Deceased Disabled, Retired and Permanent Employees

Modem Sources

I--

I-

I-

Internal

I

~Ployee

Campus Recruitment Private Employment Agencies/ Consultants Public Employment Exchanges

I-

Professional Associations

I-

Data Banks Casual Applicatants

I--

I

External

I--

Similar organisations! competitors

~

TrC!de Unions

Referrals

I

I

External -

Walk-in Consult in

-

Head Hunting

-

Body Shopping

-

Mergers & Acquisitions

-

Tele Recrcuitment Outsourcing

~

(iii) Retrenched or Retired Employees: Generally, a particular organisation retrenches the employees

due to lack of work. The organisation takes the candidates for employment from the retrenched employees due to obligation, trade union pressure and the like. Sometimes, the organisations prefer to re-employ their retired employees as a token of their loyalty to the organisation or to postpone some interpersonal conflicts for promotion etc. (iv) Dependents o/Deceased, Disabled, Retired and Present Employees: Some organisations function with a view to developing the commitment and loyalty of not only the employee but also his family members and to build up image and provide employment to the dependent(s) of deceased, disabled and present employees. Such organisations find this source as an effective source of recruitment.

Why do Organisations Prefer Internal Methods? Organisations prefer this source to external source to some extent for the following reasons: (i) Internal recruitment can be used as a technique of motivation. (ii) Morale of the employees can be improved. (iii) Suitability of the internal candidates can be judged better than the external candidates as "known devils are better than unknown angels." (iv) Loyalty, commitment, a sense of belongingness, and security of the present employees can be enhanced.

46

Human Resources Management (v) Employees' psychological needs can be met by providing an opportunity for advancement. (vi) Employees' economic needs for promotion, higher income can be satisfied.

(vii) Cost of selection can be minimised. (viii) Cost of training, induction, orientation, period of adaptability to the organisation can be reduced.

(ix) Trade unions can be satisfied. (x) Social responsibility towards employees may be discharged. (xi) Stability of employment can be ensured (See Box 2.5).

The HR manager suggested the CEO of Bajaj Auto to recruit the people from Engineering Colleges and Management Institutes to meet its HR needs for its expanded capacity. The CEO, in tum, argued for promoting the

existing employees to meet the HR needs of the expanded capacity and go for external sources for the vacancies caused due to promotion. The strategy suggested by CEO was implemented in 1982. The productivity of the company in general increased by 100% in 1983.

But organisations do not excessively rely on internal source as too much consumption of even sugar tastes bitter. The excessive dependence on this source results in in-breeding, discourages flow of new blood into the organisation, the organisation would become dull and back number without innovations, new ideas, excellence and expertise. Hence, organisations depend on internal source to the extent of motivating and then depend on external sources. External Methods: External sources are those sources which are outside the organisational pursuits. Organisations search for the required candidates from these sources for the following reasons: (i) The suitable candidates with skill, knowledge, talent etc. are generally available. (ii) Candidates can be selected without any pre-conceived notion or reservations. (iii) Cost of employees can be minimised because employees selected from this source are generally placed in the minimum pay scale. (iv) Expertise, excellence and experience in other organisations can be easily brought into the organisation. (v) Human resources mix can be balanced with different background, experience, skills etc. (vi) Latest knowledge, skill, innovative or creative talent can also be flowed into the organisation. (vii) Existing sources will also broaden their personality. (viii) Long-run benefit to the organisation in the sense that qualitative human resources can be brought. External Sources Include: (i) Campus Recruitment, (ii) Private Employment Agencies/Consultants, (iii) Public Employment Exchanges, (iv) Professional Associations, (v) Data Banks, (vi) Casual Applicants, (vii) Similar Organisations and (viii) Trade Unions. (I) Campus Recruitment: Different types of organisations like industries, business firms, service organisations, social or religious organisations can get inexperienced candidates of different types from various educational institutions like colleges and universities imparting education in Science, Commerce, Arts, _Engineering and Technology, Agriculture, Medicine, Management Studies etc., and

Human Resources Planning, Recruitment, Selection and Placement

47

trained candidates in different disciplines like vocational, engineering, medicine from the training institutes like Vocational Training Institutes of State Governments in various trades, National Industrial Training Institutes for Engineers etc. (Ii) Private Employment Agencies/Consultants: Public employment agencies or consultants like ABC Consultants in India perform recruitment functions on behalf of a client company by charging fees. Line managers are relieved from recruitment functions so that they can concentrate on their operational activities and recruitment functions are entrusted to a private agency or consultants. But due to limitacions of high cost, ineffectiveness in performance, confidential nature of this function, managements sometimes do not depend on this source. However, these agencies function effectively in the recruitment of executives. Hence, they are also called executive search agencies. Most of the organisations depend on this source for highly specialised positions and executive positions. (iii) Public Employment Exchanges: The Government set-up Public Employment Exchanges in the country to provide information about vacancies to the candidates and to help the organisations in finding out suitable candidates. The Employment Exchange (CompulsorY Notification or Vacancies) Act, 1959 makes it obligatory for public sector and private sector enterprises in India to fill certain types of vacancies through public employment exchanges. These industries have to depend on public employment exchanges for the specified vacancies. (iv) Professional Organisations: Professional organisations or associations maintain complete bio-data of their members and provide the same to various organisations on requisition. They also act as an exchange between their members and recruiting firms in exchanging information, clarifying doubts etc. Organisations find this source more useful to recruit the experienced and professional employees like executives, managers, engineers. (v) Data Banks: The management can collect the bio-data of the candidates from different sources like Employment Exchange, Educational Training Institutes, candidates etc. and feed them in the computer. It will become another source and the company can get the particulars as and when it needs to recruit. (vi) Casual Applicants: Depending upon the image of the organisation, its prompt response, participation of the organisation in the local activities, level of unemployment, candidates apply casually for jobs through mail or hand over the applications in the Personnel Department. This would be a suitable source for temporary and lower level jobs. (vii) Similar Organisations: Generally, experienced candidates are available in organisations producing similar products or are engaged in similar business. The management can get potentially suitable candidates from this source. This would be the most effective source for executive positions and for newly established organisations or diversified or expanded organisations. (viii) Trade Unions: Generally, unemployed or underemployed persons or employees seeking change in employment put a word to the trade union leaders with a view to getting suitable employment due to latter's intimacy with the management. As such, the trade union leaders are aware of the availability of candidates. In view of this fact and in order to satisfy the trade union leaders, the management enquires trade unions for suitable candidates. Management decides about the sources depending upon the type of candidates needed, time lapse period etc. It has to select the recruitment technique(s) after deciding upon the source.

Modern Methods of Recruitment A number of modern recruitment sources are being used by the corporate sector in addition to traditional sources. These sources, are divided into internal and external. Internal source include employee referrals.

48

Human Resources Management

Employee Referrals: Present employees are well aware of the qualifications, attitudes, experience and emotions of their friends and relatives. They are also aware of the job requirements and organisational culture of their company. As such, they can make preliminary judgement regarding the match between the job and their friends or relatives. Hence, the HR managers of the company depend on the present employees for reference of the candidates for various jobs. This sources reduces the cost and time required for recruitment. Further this source enhances the effectiveness of recruitment. The other category of modern sources is external sources.

Modem external methods include: Walk in and consult in, head-hunting, body-shopping, mergers and acquisitions, tele-recruitment and outsourcing. (i) Walk·In: The busy organisations and the rapid changing companies do not find time to perform various functions of recruitment. Therefore, they advise the potential candidates to attend for an interview directly and without a prior application on a specified date, time and at a specified place. The suitable candidates from among the interviewees will be selected for appointment after screening the candidates through tests and interviews. (Ii) Consult·In: The busy and dynamic companies encourage the potential job seekers to approach them personally and consult them regarding the jobs. The companies select the suitable candidates frum among such candidates through the selection process.

(iii) Head.hunting: The companies request the professional organisations to search for the best candidates particularly for the senior executive positions. The professional organisations search for the most suitable candidates and advise the company regarding the filling up of the positions. Head-hunters are also called 'search consultants'.

(Iv) Body Shopping: Professional organisations and the hi-tech training institutes develop the pool of human resources for the possible employment. The prospective employers contact these organisations to recruit the candidates. Otherwise, the organisations themselves approach the prospective employers to place their human resources. These professional and training institutions are called 'body shoppers' and these activities are known as body shopping. The body shopping is used mostly for computer professionals. Body shopping is also known as employee leasing activity. The leasing firms employ the people and lease them for the use by various needy companies for payment of a commission (See Box 2.6). (v) Mergers & Acquisitions: Business alliances like acquisitions, mergers, and take-overs help in getting human resources. In addition, the companies do also have alliances in sharing their human resources on ad-hoc basis. It does mean that the company with surplus human resources offers the services of their employees to other needy organisations. (vi) E·Recruitment: The technological revolution in telecommunications helped the organisations to use internet as a source of recruitment. Organisations advertise the job vacancies through the world wide web (www). The job seekers send their applications through e-mail using the Internet. Alternatively, job seekers place their CVs in the world wide web/internet, which can be drawn by the prospective employers depending upon their requirements.

Human Resources Planning, Recruitment, Selection and Placement

On a Friday afternoon last year, Walter Klein, President of Klein Meat Company, passed out pink slips to each of his fifteen employees. He saved the last one for himself. The following Monday, the staff of the Forth Worth, Tex., meat company returned to work as usual. But over the weekend, they had become employees of Omnistaff Inc., a Dallas leasing firm, and Klein Meat Company was leasing their services from Omnistaff.

Mr. Klein, whose business had been in his family for forty-four years, opted to lease his employees because he could no longer afford a decent benefits package. There was no retirement plan, and even medical coverage was getting out of reach. "As costs went up, it became more difficult to negotiate a good health plan," he said.

49

Employee leasing firms also shoulder their clients' paperwork burdens. They prepare the payroll, file payroll deductions, keep tabs on vacation days, file quarterly and annual payroll tc:xes, prepare federal and state unemployment filings, handle workers' compensation audits, take cake of income tax paperwork and administer the pension plans. Leasing firms apparently are filling a real vacuum. According to Mr. Borgelt, Omnistaffalone services about 100 companies and bills more than $100 million annually. The largest of these companies has a staff of 200, but the average client only employs seven workers. MrBorgelt estimates that there are about two dozen employee leasing firms across the country, and that together they employ about 50,000 people. That is up from 3,000 people just five years ago. "There is a grounds well of demand," Mr. Borgelt said.

(Source: Adaptation of, "For Rent:An Entire Workforce," by Beth Ellyn Rosenthal, The New York Times, December 16,1984).

Advantages of e-recruitment include: (i) Low cost of recruitment per candidate. (ii) Reduction in time for recruitment. (iii) Increase in the selection ratio i.e. recruiting more candidates. (iv) HR professionals can concentrate on strategic issues. (v) Increased rate of collaboration among the recruiting agencies and (vi) Increased effectiveness and efficiency of recruitment. (vii) Outsourcing: Some organisations recently started developing human resource pool by employing the candidates for themselves. These organisations do not utilise the human resources, instead they supply HRs to various companies based on their needs on temporary or ad-hoc basis. Various companies, rather than employing HRs, draw HRs from these organisations on commission basis. This arrangement is called out-sourcing.

STIMULATE THE CANDIDATES TO APPLY FOR A JOB Human Resources manager, after identifying the prospective employees by searching in various sources, has to stimulate them to apply for jobs in the company. He stimulates them through recruitment techniques.

50

Human Resources Management

Recruitment Techniques Recruitment techniques are the means or media by which management contacts prospective employees or provides necessary information or exchanges ideas in order to stimulate them to apply for jobs. Management uses different types of techniques to stimulate internal and external candidates. These techniques are classified as traditional techniques and modern techniques . Traditional techniques include: (i) Promotions (ii) Transfers and (iii) Advertising (I) Promotions: Most of the internal candidates would be stimulated to take up higher responsibilities and express their willingness to be engaged in the higher level jobs if the management gives them the assurance that they will be promoted to the next higher level. (Ii) Transfers: Employees will be stimulated to work in the new sections or places if the management wishes to transfer them to the places of their choice. (iii) Advertising: Advertising is a widely accepted technique of recruitment, though it mostly provides one way communication. It provides the candidates in different sources, the information about the job and company and stimulates them to apply for jobs. It includes advertising through different media like newspapers, magazines of all kinds, radio, television etc. The technique of advertising should aim at: (i) attracting attention of the prospective candidates; (ii) creating and maintaining interest and (iii) stimulating action by the candidates. Management in order to achieve these objectives of advertising has to: (i) Analyse job requirements; (ii) Decide who does what; (iii) Write the copy; (iu) Design the advertisement; (u) Plan and select the media and (ui) Evaluate response. Modem Techniques: Modern recruitment techniques to stimulate prospective employees to apply for jobs in the company include: (i) Scouting (ii) Salary and Perks and (iii) ESOPs (I) Scouting: Scouting means sending the representation of the organisations to various sources of recruitment with a view to persuading or stimulating the candidates to apply for jobs. The representatives provide information about the company and exchange information and ideas and clarify the doubts of the candidates. (Ii) Salary and Perks: Companies stimulate the prospective candidates by offering higher level salary, more perks, quick promotions etc. (iii) ESOPs: Companies recently started stimulating the employees by offering stock ownership to the employees through their Employees Stock Ownership Programmes (ESOPs) . (See Box 5.9).

Human Resources Planning, Recruitment, Selection and Placement

51

Applicants' Pool The Human Resources manager develops a pool of applicants by searching the candidates from different sources and stimulating/motivating them to apply for jobs. This pool of applicants helps the manager to select the candidates suitable for the future and/or changing jobs. Therefore, the next logical function is selection of right candidates for the jobs.

Factors A,fecting Recruitment Both internal and external factors affect recruitment. The external factors include supply of and demand for human resources, employment opportunities and lor unemployment rate, labour market conditions, political, legal requirement and government policies, social factors, information systems etc. The internal factors include the company's pay package including salary, fringe benefits and incentives, quality of worklife, organisational culture, career planning and growth opportunities, size of the company, company's product/services, geographical spread of the company's operations viz. local, national or global, company's growth rate, role of trade unions and cost of recruitment. Fig. 5.5 presents the factors affecting the recruitment.

SELECTION Recruitment function helps the organisation to develop a pool of prospective human resources. It is difficult for the HR manager to employ the suitable people out of the pool. Infact, many organisations face critical problems in choosing the people. Selection techniques and methods reduce the complexities in choosing the right candidates for the job. Now, we shall discuss the selection of right candidates in the following lines.

Meaning of Selection After identifying the sources of human resources, searching for prospective employees and stimulating them to apply for jobs in an organisation, the management has to perform the function of selecting the right employees at the right time. The obvious guiding policy in selection is the intention to choose the best qualified and suitable job candidate for each unfilled job. The objective of the selection decision is to choose the individual who can most successfully perform the job from the pool of qualified candidates. The selection procedure is the system of functions and devices adopted in a given company to ascertain whether the candidates' specifications are matched with the job specifications and requirements or not. The selection procedure cannot be effective until and unless: (i) Requirements of the job to be filled have been clearly specified (Job analysis etc.). (ii) Employee specifications (physical, mental, social, behavioural etc.) have been clearly specified. (iii) Candidates for screening have been attracted. Thus, the development of job analyses, human resources planning and recruitment are necessary prerequisites to the selection process. A breakdown in any of these processes can make even the best selection system ineffective.

Essentials of Selection Procedure The selection process can be successful if the following requirements are satisfied: (i) Someone should have the authority to select. This authority comes from the employment requisition, as developed by an analysis of the work-load and work-force.

52

Human Resources Management (ii) There must be some standard of personnel with which a prospective employee may be compared,

i.e. a comprehensive job description and job specification should be available beforehand. (iii) There must be a sufficient number of applicants from whom the required number of employees may be selected. Significance of Selection Process: Selection of personnel to man the organisation is a crucial, complex and continuing function. The ability of an organisation to attain its goals effectively and to develop in a dynamic environment largely depends upon the effectiveness of its selection programme. If right personnel are selected, the remaining functions of personnel management become easier, the employee contribution and commitment will be at optimum level and employee-employer relations will be congenial. In an opposite situation where the right person is not selected, the remaining functions of personnel management, employee-employer relations will not be effective. If the right person is selected, he is a valuable asset to the organisation and if faulty selection is made, the employee will become a liability to the organisation.

Role of Selection in Organisational Efficiency Employee selection plays a vital role in achieving organisational efficiency due to the following reasons: (i) Organisational efficiency is mostly determined by the productivity. Productivity in its turn is

mostly influenced by the employees' contribution. (ii) Organisational efficiency is influenced by production of high quality products, rendering superior service to the customer. Human resources is the most vital resource in producing quality products and rendering the best service to the customers. (iii) Globalisation and international competitiveness led to the customisation in production and distribution. Customisation can be possible only with the commitment and multi-skills of human resources. (iv)Human resources is the knowledge, machine, technology, marketing, finance etc. in the software industry.

Organisation for Selection Before designing a selection procedure, the manner in which tasks and responsibilities for accepting or rejecting candidates should be shared by line and staff executives must be laid down. The personnel department should eliminate all unsuccessful candidates, so that the time of the line executives need not be spent on such people. Secondly, candidates who can meet job requirements should be made available promptly. Line executive is ultimately vested with the authority either to accept or to reject a candidate. However, the personnel officer has a duty to see that the right type of personnel are selected and placement is done wisely. If he is not satisfied in this regard, he should give his views to the superior and should avoid involving himself in argument with the departmental head on the methods of selection.

SELECTION METHODS Selection procedure employs several methods of collecting information about the candidate's qualifications, experience, physical and mental ability, nature and behaviour, knowledge, aptitude and the like for judging whether a given applicant is suitable or not for the job. Therefore, the selection procedure is not a single act but is essentially a series of methods or stages by which different types of information can be secured through various selection techniques. At each step, facts may come to light

Human Resources Planning, Recruitment, Selection and'Placement

53

which are useful for comparison with the job requirement and employee specifications.

Steps in Scientific Selection Process (i) Job Analysis. (ii) Recruitment. (iii) Application Form. (iv) Written Examination. (v) Preliminary Interview. (vi) Business Games. (vii) Tests. (viii) Final Interview. (ix) Medical Examination. (x) Reference Checks. (xi) Line Manager's Decision. (xii) Job offer (xiii) Employment. (Fig. 2.3)

I Figure

•••

Scientific Selection Process

I Development Bases for Selection

rl

I

---1

Application I Resume ICVI Bio-data

IHumanPlan Resources I

---{

Written Examination

---{

Preliminary Interview

---1

Business Games

I

Job Analysis

Recruitment

j

I

I

~ Assess the Fit between the Job and the Candidate

I

H H H -i rl

H y ~JOB

I I

Tests Final Interview Medical Examination I

Reference Checks

I I

I I I

Line Manager's Decision

I

Job Offer

r-

Employment

I

ANALYSIS

Need for Job Analysis Procurement is the first operative function of personnel management, which can be sub-divided into various sub-functions like human resources planning, recruitment and selection. Management should

54

Human Resources Management

determine the kind of personnel required for a job and the number of persons to be employed. The organisation should also find out the right man for the right job in the right time. The knowledge of the job is essential to perform these functions. In addition, establishment of the scientific standard in advance is essential to compare the applicants with the job and to select the suitable personnel. This standard stipulates the minimum acceptable qualifications, skills and qualities required for adequate job performance. Stipulating the standard requires the knowledge regarding job design, study of the job duties and responsibilities, requirements of the job, human abilities and qualities etc. Job analysis is needed to know all these functions and to perform various functions of HRM. Job Terminology: Description of technical terminology is highly necessary in order to facilitate the study of ajob analysis. So, it is desirable to define the terms related to job analysis like task, position, job, occupation, job analysis, job description, job specification and job classification. Task: A task is an action or related group of action designed to produce a definite outcome or result. Position: A position is a group of similar tasks and responsibilities assigned to one individual. The term is used in this narrow technical sense to facilitate more precise discussion of the job analysis technique. Job: A job is "a group of positions that are similar as to the kind and level of work." In some instances, only one position may be involved, simply because no other similar position exists. For example, in the small firm, the position of personnel manager also constitutes a job since there is only one personnel manager position in the organisation. Further, there may be six employees, "all of whom are classified under the same title, yet each may perform slightly different work." For example, there may be five or six cashiers in a large commercial bank branch who may do different work. Occupation: An occupation "is a group of jobs that are similar as to the kind of work and are found throughout an industry or the entire country." An occupation is a category of work found in many firms. Job Analysis: The U.S. Department of Labour defined job analysis as "the process of determining, by observation and study and reporting pertinent information relating to the nature of a specific job. It is the determination of the tasks which comprise the job and of the skills, knowledge, abilities and responsibilities required of the worker of a successful performance and which differentiate one job from' all others." The aspects of job analysis include: job description and job specification as shown in Fig.2.4. Job Analysis

Job Analysis

I

Job Description

I

I

Job Specification

Job -Description: A job description is "an organised, factual statement of the duties and responsibilities of a specific job." In brief, it should tell what is to be done, how it is done and why? It is a standard of function, in that it defines the appropriate and authorised content of a job.

Human Resources Planning, Recruitment, Selection and Placement

55

Job Specification: Ajob specification is "a statement of the minimum acceptable human qualities necessary to perform a job properly." In contrast to the job description, it is a standard of personnel and deSignates the qualities required for acceptable performance. Job Classification: A job classification is "a grouping of jobs on some specified basis such as the kind of work or pay." For example, a clerk, a teacher, an engineer, a chemist etc.

JOB DESCRIPTION Job de~.::ription is an important document which is basically descriptive in nature and contains a statement of job analysis. It serves to identify a job for consideration by other job analysts. It tells us what should be done, why it should be done, and where it should be performed.

Characteristics of Good Job Description Earnest Dale developed the following hints for writing the job description. (i) The job description should indicate the scope and nature of the work including all important relationships. (ii) The job description should be clear regarding the work of the position, duties etc. (iii) More specific words should be selected to show (a) the kind of work, (b) the degree of complexity, (c) the degree of skill required, (d) the extent to which problems are standardised, (e) the extent of worker's responsibility for each phase of the work and (/) the degree and type of accountability. Action words such as analyse, gather, plan, confirm, deliver, maintain, supervise and recommend should be used. (iu) Supervisory responsibility should be shown to the incumbents. Brief and accurate statements should be used in order to accomplish the purpose. (u) Utility of the description in meeting the basic requirements should be checked from the extent of understanding the job by reading the job description by a new employee.

The Content of Job Description The job description normally contains the information on the following lines: • • • • • • • • • • •

Job title Organisational location of the job Supervision given and received Materials, tools, machinery and equipment worked with Designation of the immediate superiors and subordinates Salary levels: Pay, D.A., other allowances, bonus, incentive wage, method of payment, hours of work, shift and break Complete list of duties to be performed separated according to daily, weekly, monthly and casual, estimated time to be spent on each duty Definition of unusual terms Conditions of work: location, time, speed of work, accuracy, health-hazards and accident hazards Training and developmental facilities and Promotional chances and channels

56

Human Resources Management

Major Steps of Job Description Job analyst has to write the job description after. consulting the worker and the supervisor. After writing the preliminary draft, the job analyst has to get further comments and criticism from the worker and supervisor before preparing the final draft. The follqwing modes may be used in writing job description. (i) Get the questionnaire filled in by the immediate supervisor of the employee. (ii) Job analyst has to complete the job description form by observing the actual work being done by the employee and (iii) All the information pertaining to the job should be secured from the worker. The job analyst has to finalise the job description and write the final draft by using anyone or a combination of two or more of the above methods. The job description should be reviewed and updated after the final draft is prepared.

JOB SPECIFICATION It is a written statement of qualifications, traits, physical and mental characteristics that an individual must possess to perform the job duties and discharge responsibilities effectively.

Job Specification Information The first step in the programme of job specification is to prepare a list of all the jobs in the company and where they are located. The second step is to secure and write up the information about each of the jobs in a company. Usually, this information includes: (i) physical specifications, (ii) mental specifications, (iii) emotional and social specifications and (iv) behavioural specifications. (i) Physical Specifications: Physical specifications include the physical qualifications or physical capacities which vary from job to job. Physical qualifications or capacities include physical features like height, weight, chest, vision, hearing, ability to lift weight, ability to carry weight, health, age, capacity to use or operate machines, tools, equipment etc. (Ii) Mental Specifications: Mental specifications include ability to perform, arithmetical calculations to interpret data, information blueprints, to read electrical circuits, ability to plan, reading abilities, scientific abilities, judgement, ability to concentrate, ability to handle variable factors, general intelligence, memory etc. (iii) Emotional and Social Specifications: Emotional and social specifications are more important for the post of managers, supervisors, foremen etc. These include emotional stability, flexibility, social adaptability in human relationships, personal appearance including dress, posture, poise, features and voice required by the job. (iv) Behavioural Specifications: Behavioural specifications play an important role in selecting the candidates for higher level jobs in the organisational hierarchy. This specification seeks to describe the acts of managers rather than the traits that cause the acts. These specifications include judgements, research, creativity, teaching ability, maturity (capable of accepting responsibility) trial of conciliation, self-reliance (self-starter sticks to own decisions), dominance (giving orders in a personal way) etc. Job specification model is depicted in Figure 2.5.

Human Resources Planning, Recruitment, Selection and Placement

Job Specification Form

Job Grade Job Title Age Sex

Educational Qualifications

Training received Experience

PhYSical specification Social specification Extra-curricular activities

57

Middle Management Credit Manager Between 35 and 45 years Preferably male B.E. (Industrial Engineering) or B.5c., Ag., with post-graduate diploma or degree in Bank Management. Completion of CAllB is an additional qualification. Should undergo training on the job/off the job for a period of one year. Experience as credit/field officer in a commercial bank for about five years. Normal height (above 5' - 5") Member of social organisations Should have participated in sports/games at the district or inter-university level.

Development of Bases for Selection: The company has to select the appropriate candidates from the applicants' pool. The company develops or borrows the appropriate bases/techniques for screening the candidates in order to select the appropriate candidates for the jobs. Application Form: Application Form is also known as application blank. The technique of application blank is traditional and widely accepted for securing information from the prospective candidates. It can also be used as a device to screen the candidates at the preliminary level. Many companies formulate their own style of application forms depending upon the requirement of information based on the size of the company, nature of business activities, type and level of the job etc. Information is generally required on the following items in the application forms: (i) Personal background information (ii) Educational attainments (iii) Work experiences (iu) Salary (u) Personal details and (ui) References. Exhibit 2.1 presents a model resume. (i) Personnel Background Information: It includes name, present and permanent addresses, sex, date of birth, marital status, health, height and weight, nationality, number of dependents, annual income of applicant's parents etc. This information can be used by the management to know the suitability of the candidate regarding his socio-economic background, neighbourhood, family status and background, sociological outlook, impact of these factors on employee behaviour etc. (ii) Educational Attainments: These include list of schools, colleges, institutions attended, period of study, major subjects, class, percentage of marks, rank secured, extra-curricular activities, positions and membership held during the educational career, hobbies, and interests, study either through regular course, or correspondence course or through private study etc. This is the major area of information gathered by the organisation through application forms.

58

Human Resources Management

Exhibit 2.1 A MODEL RESUME / CURRICULUM VITAE (CV) Confidential Resume Ie.v. of

Career Objective

Education Age Experience 5/92 to 4/94

5/94 to 6/97 Special Skills School Activities References

Mr. Ravi Prakash 21, Main Road, Jayanagar Bangalore - 560 009 Phone + 80 - 763 20964 (Residence) Fax: + 80 - 76321935 E-mail: [email protected] Challenging opportunity to combine multi-disciplinary skills of Human Resources Management and strategic management in a dynamic global environment. Bangalore University MBA, (HRM), April,2oo2. 25 years Sales Executive, Consumer goods. Primary functions include meeting customers ever changing needs through selling products needed by double income group (DIG) customers. Production Assistant, soft drinks primary functions include assisting the production design executive. Salary Rs. 10,000 + perks. Fluent in English, Hindi, Marathi and Telugu. Computer Literature, Excellent in Human Relations and Public Relations. Co-ordinator, School students' cancord Fun.. ished on Request.

(iii) Work Experience: It covers experience in all previous jobs with greater particulars about the nature and quantum of work handled, period of experience in each job, reasons for leaving the past employers, duties and responsibilities involved, name ofthe immediate supervisor, salary drawn etc. This information enables the organisation to know the stability of the employee, his aptitude for the nature of work, nature of relationship he maintained with the past employers etc. (iv) Salary: Salary drawn in the present employment and salary and benefits expected. (v) Personal Items: Association membership, personal likes and dislikes, hobbies etc. (vi) References: Organisations ask candidates to send the names and addresses of persons who can be contacted for reference purposes.

Written Examination The organisations have to conduct written examination for the qualified candidates after they are screened on the basis of the application blanks so as to measure the candidate's ability in arithmetical calculations, to know the candidates' attitude towards the job, to measure the candidates' aptitude, reasoning, knowledge in various disciplines, general knowledge and English language.

Preliminary Interview The preliminary interview is to solicit necessary information from the prospective applicants and to assess the applicant's suitability to the job. This may be conducted by an assistant in the personnel department. The information thus provided by the candidate may be related to the job or personal specifications regarding education, experience, salary expected, aptitude towards the job, age, physical appearance and other physical requirements etc. Thus, preliminary interview is useful as a process of

Human Resources Planning, Recruitment, Selection and Placement

59

eliminating the undesirable and unsuitable candidates. If a candidate satisfied the job requirements regarding most of the areas, he may be selected for further process. Preliminary interviews are short and known as stand-up interviews or sizing-up of the applicants or screening interviews. However, certain required amount of care is to be taken to ensure that the desirable workers are not eliminated. This interview is also useful to proVide the basic information about the company to the candidate. Business Games: Business games are widely used as a selection technique for selecting management trainees, executive trainees and managerial personnel at junior, middle and top management positions. Business games help to evaluate the applicants in the areas of decision-making, identifying the potentialities, handling the situations, problem-solving skills, human relations skills etc. Participants are placed in a hypothetical work situation and are required to play the role situations in the game. The hypothesis is that the most successfukandidate in the game will be the most successful one on the job. Exhibit 2.2 presents the types of business games and the skills that are evaluated by each game. Exhlbft2.2

BUSINESS GAMES AND THEIR UTILIlY IN THE SELECTION PROCESS

Business Games (i) Case Study (ii) Role Play (iii) In-basket method (iv) Sensitivity (v) Simulations

Utility Analytical, judgemental and decision-making skills. Human relations skills. Situational judgement, social relations, decision-making skills, problem-solving skills. Degree of openness, concern for others, tolerance for individual differences.· Encountering skills.

Group Discussion: The technique of group discussion is used in order to secure further information regarding the suitability 9f the candidate for the job. Group discussion is a method where groups of the successful applicants are brought around a conference table and are asked to discuss either a case study or a subject-matter. The candidates in the group are required to analyse, discuss, find alternative solutions and select the sound solution. A selection panel then observes the candidates in the areas of initiating the discussion, explaining the problem, soliciting unrevealing information based on the given i11formation and using common sense, keenly observing the discussion of others, clarifying controversial issues, influencing others, speaking effectively, concealing and mediating arguments among the participants and summarising or concluding aptly. The selection panel, based on its observation, judges the candidates' skill and ability and ranks them according to their merit. In some cases, the selection panel may also ask the candidates to write the summary of the group discussion in order to know the candidates' writing ability as well. Test Psychological tests playa vital role in employee selection. A psychological test is essentially an objective and standardised measure of sample of behaviour from which inferences about future behaviour and performance of the candidate can be drawn. Objectivity of tests refers to the validity and reliability of the instruments in measuring the ability of the individuals. Objectivity provides equal opportunity to all the job seekers without any discrimination against sex, caste etc. Standardisation of test refers to uniformity of procedure in conducting the tests for

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Human Resources Management

all the candidates. Sample behaviourrefers to the sample of the total behaviour of the prospective employee on the job.

USES OF TESTS IN SELECTION The most vital technique of selection which gained significance is testing. Tests are useful in judging the candidate's suitability to the job. The uses of tests in the selection process include: • Tests help the managers in evaluating the candidate's suitability to the job. • Tests measure the nature and degree of candidate's psychological potentialities, based on psychological factors, essential to perform a given job efficiently. • Tests help in judging the ability of a candidate in a given job situation. • Tests help in ranking the candidates applied for a job. • Tests are valuable in determining subsequent success on the job. • Test results are more valuable in determining candidate's weaknesses. • Tests are helpful in picking a most likely successful group from a larger group. • Tests are useful when other selection devices fail in providing valuable information. • Tests examine the candidate's intelligence, mechanical aptitude, clerical aptitude, job knowledge, interest in the job, individual and group decision-making skills, and personality. Types of Test: Tests are classified into five types (Fig. 2.6). They are:{i} Aptitude tests; (ii) Achievement tests; (iii) Situational tests; (iv) Interest tests; (v) Personality tests and (vi) Multidimensional Testing. (i) Aptitude Tests: (a) Intelligence Test (IQ) (b) Emotional Quotient Ie) Skill Tests (d) Mechanical Aptitude (e) Psychomotor Tests

Types of Psycho· logical Tests

(f) 1----

Clerical Aptitude Tests

(ii) Achievement Test: (a) Job Knowledge Test (b) Work Sample Test

Types of Test -

I-----(iii) Situational Tests: (a) (b)

Group Discussion In Basket

I-----(iv) Interest Test: 1------

(v) Personality Tests: (a) Thematic Apperception Tests (b) Ink Blot Tests

l . . -_ _ _

(vi) Other Tests (a) (b) (a) (a) (a)

Cognitive Ability Tests Wechsler Adult Intelligence Scale Wonderlic Personal Tests Polygraph Tests Honesty Tests

Human Resources Planning, Recruitment, Selection and Placement

61

(i) Aptitude Tests: These tests measure whether an individual has the capacity or latent ability to learn a given job if given adequate training. Aptitudes can be divided into general and mental ability or intelligence and specific aptitudes such as mechanical, clerical, manipulative capacity etc. (a) Intelligence Tests (IQ): These tests in general measure intelligence quotient of a candidate. In detail, these tests measure capacity for comprehension, reasoning, word fluency, verbal comprehension, numbers, memory and space. Otherfactors comprise of digit spans, both forward and backward, information known, comprehension, vocabulary, picture arrangement and object assembly. Though these tests are accepted as useful ones, they are criticised against deprived sections of the community. Further, it is also criticised that these tests may prove to be too dull as a selection device. Intelligence tests include: sample learning, ability, adaptability tests etc. Intelligence Quotient (IQ) The scope of the intelligence test is expressed in terms of Intelligence Quotient (IQ). IQ is calculated by using the following formula: IQ = Mental Age Actual Age

= x 100

Candidates with high level of intelligence quotient can learn the complicated issues easily and fast. Therefore, it would be easy for the company to train such candidates easily for the new jobs and new technology . Emotional Quotient (EQ): Most of the organisations realised that emotional involvement and commitment of the employees determine their contribution to the company rather than their intelligence quotient. As such, emotional quotient (EQ) is used as an important criteria in the employee selection process. EQ is calculated by using the following formula: EQ = Emotional Age x 100 Actual Age

(b) Skill Tests: These tests measure the candidate's ability to do a job perfectly and intelligently. These tests are useful to select the candidates to perform artistic jobs, product design, design of tools, machinery etc. The candidates can be selected for assembly work, testing and inspection also. (c) Mechanical Aptitude Tests: These tests measure the capacities of spatial visualisation, perceptual speed and knowledge of mechanical matter. These tests are useful for selecting apprentices, skilled, mechanical employees, technicians etc. (d) Psychomotor Tests: These tests measure abilities like manual dexterity, motor ability and eyehand coordination of candidates. These tests are useful to select semi-skilled workers and workers for repetitive operations like packing and watch assembly. (e) Clerical Aptitude Tests: Measure specific capacities involved in office work. Items of this test include spelling, computation, comprehension, copying, word measuring etc. (Ii) Achievement Tests: These tests are conducted when applicants claim to know something as these tests are concerned with what one has accomplished. These tests are more useful to measure the value of a specific achievement when an organisation wishes to employ experienced candidates. These tests are classified into: (a) Job knowledge test: and (b) Work sample test. (a) Job Knowledge Test: Under this test, a candidate is tested in the knowledge of a particular job. For example, if a junior lecturer applies for the job of a senior lecturer in commerce, he may be tested

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Human Resources Management

in job knowledge where he is asked questions about Accountancy Principles, Banking, Law, Business Management etc.

(b) Work Sample Test: Under this test, a portion of the actual work is given to the candidate as a test and the candidate is asked to do it. If a candidate applies for a post of lecturer in Management, he may be asked to deliver a lecture on Management Information System as work sample test. Thus, the candidate's achievement in his career is tested regarding his knowledge'aboutthe job and actual work experience. (Ill) Situational Test: This test evaluates a candidate in a similar real life situation. In this test, the candidate is asked either to cope with the situation or solve critical situations of the job.

(a) Group Discussion: This test is administered through the group discussion approach to solve a problem under which candidates are observed in the areas ofinitiating, leading, proposing valuable ideas, conciliating skills, oral communicating skills, co-ordinating and concluding skills. (b) In Basket: Situational test is administered through in basket. The candidate in this test is supplied with actual letters, telephone and telegraphic message, reports and requirements by various officers of the organisation, adequate information about the job and organisation. The candidate is asked to take decisions on various items based on the in basket information regarding requirements in the memoranda. (Iv) Interest Tests: These tests are inventories of the likes and dislikes of candidates in relation to work, job, occupations, hobbies and recreational activities. The purpose of this test is to find out whether a candidate is interested or disinterested in the job for which he is a candidate and to find out in which area of the job range/occupation the candidate is interested. The assumption of this test is that there is a high correlation between the interest of a candidate in ajob and job success. Interest inventories are less faked and they may not fluctuate after the age of 30. (v) Personality Tests: These tests prove deeply to discover clues to an individual's value system, his emotional reactions and maturity and characteristic mood. They are expressed in such traits like selfconfidence, tact, emotional control, optimism, decisiveness, sociability, conformity, objectivity, patience, fear, distrust, initiative,judgement dominance or submission, impulsiveness, sympathy, integrity, stability and self-confidence. (a) Thematic Apperception Test (TAT): Candidates are shown a series of pictures and are asked to write a story based on these pictures. This test measured candidates conceptual, imaginative, projective and interpretative skills. (b) Ink-Blot Test: The Rorschach Inkblot test was first described in 1921 . The candidates are asked to see the ink-blots and make meaningful concepts out of them. The examiner keeps a record of the responses, time taken, emotional expressions and other incidental behaviours. (vi) Other Tests (a) CognitiveAbility Tests: These tests measure mathematical and verbal abilities. Popularly kno\\i'n tests of this category include Graduate Record Examination (GRE) and Scholastic Aptitude Test (SAT). (b) Wechsler Adult Intelligence Scale: This is a comprehensive test including general information, arithmetic, similarities, vocabulary, picture completion, picture arrangement, object assembly and similar items.

(c) Wonderlic Personnel Test: This test includes perceptual, verbal and arithmetic.

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63

(d) Polygraph Tests: The polygraph is an instrumentthatrecords changes in breathing, blood pressure, pulse and skin response associated with sweating of palms and plots these reactions on paper. The candidate is asked a ,series of simple, complicated, related, unrelated and critical questions. This test was used in personnel selection extensively in 1980s, but objections have been raised to the use of this test in personnel selection in 2000s. (e) Honesty Tests: The two types of pre-emplqyment honesty tests are overt integrity tests and 1 personality-based integrity tests. Overt integrity tests make direct questions to assess dishonest behaviour and gather a history of theft and illegal behaviour. Per~onality-based integrity tests assess an individual's predisposition towards deviant and disruptive behaviour.

Interview Final interview is usually followed by testing. This is the most essential step in the process of selection. In this step, the interviewer matches the information obtained about the candidate through various means to the job requirements and to the information obtained through his own observation during the interview. Types of Interviews: The types of interviews are: (i) Informal Interview (ii) Formal Interview (iii) Planned Interview (iv) Patterned Interview (v) Non-directive Interview (vi) Depth Interview (vii) Stress Interview (viii) Group Interview and (ix) Panel Interview (Fig. 2.7). r--

Types of Employment Interviews

(i)

Preliminary Interview

--r Informal interview L

t-- (ii)

'--- (iii)

Unstructured interview

Core Interview - - - - . - Background information interview -

Job and probing interview

-

Stress interview

-

The group discussion interview

-

Formal and structured interview

-

Panel interview and

-

Depth interview

Decision-Making Interview

Preliminary Interview (a) Informal Interview: This is the interview which can be conducted at any place by any person to secure the basic and non-job related information. The interaction between the candidate and the personnel manager when the former meets the latter to enquire about the vacancies or additional particulars in connection with the employment advertisement is an example of informal interview. (b) Unstructured Interview: In this interview, the candidate is given the freedom to tell about himself by revealing his knowledge on various items/areas, his background, expectations, interest etc. Similarly, the interviewer also provides information on various items required by the candidate.

Core Interview: It is normally the interaction between the candidate and the line executive or experts on various areas of job knowledge, skill, talent etc. This interview may take various forms like:

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Human Resources Management

(i) Background Information Interview: This interview is intended to collect the information which is not available in the application blank and to check that information provided in the application blank regarding education, place of domicile, family, health, interests, hobbies, likes, dislikes and extracurricular activities of the applicant. (ii) Job and Probing Interview: This interview aims attesting the candidate's job knowledge about duties, activities, methods of doing the job, criticaVproblematic areas, methods of handling those areas etc. (iii) Stress Interview: This interview aims at testing the candidate's job behaviour and level of withstanding during the period of stress and strain. The Interviewer tests the candidate by putting him under stress and strain by interrupting the applicant from answering, criticising his opinions, asking questions pertaining to unrelated areas, keeping silent for unduly long periods after he has finished speaking etc. Stress during the middle portion of the interview gives effective results. Stress interview must be handled with utmost care and skill. This type of interview is often invalid, as the interviewee's need for a job and his previous experience in such type of interviews may inhibit his actual behaviour under such situations. (iv) Group Discussion Interview: There are two methods of conducting group discussion interviews, viz. group interview method and discussion interview method. All the candidates are brought into one room, i.e. the interview room and are interviewed one by one under group interview. This method helps a busy executive to save valuable time and gives a fair account of the objectivity of the interview to the candidates. Under the discussion interview method, one topic is given for discussion to the candidates who assemble in one room and they are asked to discuss the topic in detail. This type of interview helps the interviewer in appraising certain skills of the candidates like initiative, inter-personal skills, dynamism, presentation, leading, comprehension, collaboration etc. Interviewers are at ease in this category of interview because of its informality and flexibility. But it may fail to cover some Significant portions of the candidates' background and skills. (v) Formal and Structured Interview: In this type of interview, all the formalities, procedures like fixing the value, time, panel of interviewers, opening and closing, intimating the candidates officially etc. are strictly followed in arranging and conducting the interview. The course of the interview is preplan ned and structured, in advance, depending on job requirements. The questions for discussion are structured and experts are allotted different areas and questions to be asked. There will be very little room for the interviewers to deviate from the questions prepared in advance in a sequence. (vi) Panel Interview: A panel of experts interview each candidate, judges his performance individually and prepares consolidated judgement. This type of interview is known as panel interview. Interviews for middle level and senior level managers are normally conducted by the panel of experts. (vii) Depth Interview: In this interview, the candidate would be examined extenSively in core areas of job skills and knowledge. Experts test the candidate's knowledge in depth. Depth interviews are conducted for specialist jobs. Information technology brought significant developments in the selection process of employees. The vital development is on-line interview (See Box.2.8).

DeciSion-Making Interview: After the candidates are examined by the experts including the line managers of the organisation in the core areas of the job, the head of the department! section concerned interviews the candidates once again, mostly through informal discussion. The interviewer examines the interest of the candidate in the job, organisation, reaction/adaptability to the working conditions, career planning, promotional opportunities, work adjustment and allotment etc. The Personnel Manager also interviews the candidates with a view to find out his

Human Resources Planning, Recruitment, Selection and Placement

Most of the employee selection techniques including interviews are now conducted through on-line. These techniques include: on-line applicant searching or on-line application submission, internet based recruiting, outsourcing employment function, sophisticated scanning and searching.

65

Most of the global companies interview the candidate on-line across the globe. A panel of interviewers interview the candidates of any country. This practice reduces the cost of interview to a large extent.

(Source: Adapted from Human Capital, September 1998, p.1S) .

reaction/acceptance regarding salary, allowances, benefits, promotions, opportunities etc. The head of the department and the personnel manager exchange the views and then they jointly inform their decision to the chairman of the interview board, who finally makes the decision about the candidates' performance and their ranks in the interview. Most of the organisations have realised recently that employees' positive attitude matters much rather than employees' skills and knowledge. Employees with positive attitude contribute much to the organisation. Hence, the interviewers look for the candidates with the right attitude while making final decision (See Box.2.9) .

Infotech Limited discovered that employees with right attitude take-up activities willingly on their own. They quire the necessary skills, if they do possess them.

the the acnot

They never say 'no' to other employees, superiors and customers. Hence the interviewers of Infotech Ltd. look for the candidates with right and/or positive attitude, irrespective of their technical skills and knowledge.

Medical Examination Certain jobs require certain physical qualities like clear vision, perfect hearing, unusual stamina, tolerance of hardworking conditions, clear tone etc. Medical examination reveals whether or nota candidate possesses these qualities. Medical Examination can give the following information: (i) Whether the applicant is medically suited for the specific job. (ii) Whether the applicant has health problems or psychological attitudes likely to interfere with work efficiency or future attendance. (iii) Whether the applicant suffers from bad health which should be corrected before he can work satisfactorily (such as need for spectacles). (iv) It reveals the applicant's physical measurements and (v) it is used to check the special senses of the candidates.

Reference Checks After completion of the final interview and medical examination, the personnel department will engage in checking references. Candidates are required to give the names of references in their application forms. These references may be from the individuals who are familiar with the candidate's academic achievement or from the applicant's previous employer, who is well versed with the applicant's job performance, and sometimes from co-workers.

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In case the reference check is from the previous employer, information for the following areas may be obtained. They are: job title, job description, period of employment, pay and allowances, gross emoluments, benefits provided, rate of absence, willingness of the previous employer to employ the candidate again etc. Further, information regarding candidate's regularity at work, character, progress etc. can be obtained. Often a telephone call is much quicker. The method of mail provides detailed information about the candidate's performance, character and behaviour. However, a personal visit is superior to the mail and telephone methods and is used where it is highly essential to get the detailed, actual information which can also be secured by observation. Reference checks are taken as a matter of routine and treated casually or omitted entirely in many organisations. But a good reference check used sincerely will fetch a useful and reliable information to the organisation.

Final Decision by the Line Manager Concerned The Une Manager concerned has to make the final decision whether to select or reject a candidate after soliciting the required information through differenttechniques discussed earlier. The line manager has to take much care in taking the final decision not only because of economic implications and of the decisions but also because of behavioural and social implications. A careless decision of rejecting would impair the morale of the people and they would suspect the selection procedure and the basis of selection of this organisation. A true understanding between line managers and personnel managers should be established to iake proper decisions.

Job Offer Thus, after taking the final decision, the organisation has to intimate this decision to the successful as well as unsuccessful candidates. The organisation offers the job to the successful candidates either immediately or after sometime depending upon its time schedule. The candidate after receiving job offer communicates his acceptance to the offer or requests the company to modify the terms and conditions of employment or rejects the offer.

Employment The company may modify the terms and conditions of employment as requested by the candidate . The company employs those candidates who accept the job offer with or without modification of terms and conditions of employment and place them on the job.

PLACEMENT When once the candidate reports for duty, the 9rganisation has to place him initially in that job for which he is selected. Immediately the candidate will be trained in various related jobs during the period of probation of training or trial. The organisation generally decides the final placement after the initial training is over on the basis of the candidate's aptitude and performance during the training! probation period. Probation period generally ranges between six months and two years. If the performance is not satisfactory, the organisation may extend the probation or ask the candidate to quit the job. If the employee's performance during the probation period is satisfactory, his services will be regularised and he will be placed permanently on a job. Employee placement process is shown in Exhibit

2.3.

Meaning Placement is "the determination of the job to which an accepted candidate is to be assigned and his assignment to that job. It is a matching of what the supervisor has reason to think he can do with the job demands Gob requirements), it is a matching of what he imposes (in strain, working conditions)

Human Resources Planning, Recruitment, Selection and Placement

67

Exhibit 2.3

EMPLOYEE PLACEMENT PROCESS Collect details about the employee

4, Construct the employee's profile

4, Match between sub-group profile and individual's profile

4, Compare sub-group profile to job family profile

4, Match between job family profiles and sub-group profiles

4, Assign the individuals to the job family

4, Assign the individual to specific job after further counseling and assessment. (Source: Wayne F. Cascio and Elios M. Award, Human Resource Management, p. 265) and what he offers in the form of pay roll, companionship with others, promotional possibilities etc. It is not easy to match aU the factors to the new employee who is still unknown to many. So, the new employee is placed as a probationer until the training period is over.

Problems in Placement As stated earlier, placement is a crucial task. Placement needs a clear-cut match between the employees' skills, knowledge, vale systems, aptitude and attitude to the job description and job specification. Though the HR manager takes all possible precautions, some problems in placement crop up. These problems include. (i) Employee Expectations: Employee expectations from the job is the main source for the problems in placement. If the employee expects high salary, independent and challenging work and the job offers low salary,. Dependent and routine work, the employee finds himself misfit to the job. (ii) Job expectations/description : Sometimes the expectations from the employee are more than the employee's abilities or skills. Then the HR manager finds the mismatch between the job and the employee. (iii) Change in Technology : The technological changes bring radical changes in job description and specificatiof"l. These changes result in mismatch between the job and the employee. (iv) Changes in Organisational Structure : The business grand strategies like mergers, acquisitions, downsizing, delayering etc. result in changes in organisational structure and thereby changes in the jobs. These changes result in misfit between the employee and the job. (v) Social and Psychological Factors : The social and psychological factors involved in team work or group formation sometimes result in mismatch.

How to make Placement Effective (i) Job Rotation : The technique of rotating the employee among different jobs in the department/organization emables the employee to satisfy his aptitude for challenging work and finds the match between himself and the job.

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Human Resources Management

(ii) Teamwork: The recent trend of job design is team building. The teamwork allows employees to use their skill, knowledge, abilities etc. and it minimises the problems in placement. (iii) Training and Development: Continuous employee training and management development help the employee to acquire new skills and knowledge, based on the redesigned jobs. This practice solves the placement problems. (iv) Job Enrichment: Job enrichment provides the challenging work and decision-making authority to the employees. It gives the opportunity of utilising the varied skills of the employees and minimises problems in management. (v ) Empowerment: Employee empowerment relating to the job makes the employee to exploit his potentialities and make use of them. This technique reduces the problems in placement. Relocating the Employee: Companies having branches/offices at different place select the candidate and place him at one branch initially and shift him to other branch/office at a later stage based on organisationa/employee requirement. Placing the employee at different places subsequently is called relocating the employee.

Questions for Discussion 1. If human resources planning is so significant, why is it not done more extensively and better? 2. What is the process of manpower planning before a factory is commissioned and for an on-going enterprise? Examine different approaches for manpower control and review? 3. What are the techniques for human resource planning? 4. "Although nothing can be done about the past performance, perhaps even about the present performance can certainly be made excellent as the organisation desires, provided proper care is taken today to plan for the quantity and quality of tomorrow's manpower." Elucidate. 5. What do you understand by human resources planning? How would you draw-up a manpower plan for an organisation? 6. What is manpower planning? What factors do you consider while forecasting manpower needs of an organisction? 7. What are the objectives and benefits of human resources planning? 8. How do you draw up an action plan to the manpower plan for a newly established firm? 9. Suppose human resources planners forecasted that computerisation in Wadia Industries Ltd. indicates that the firm needs 25 per cent newer employees in the next three years, what actions would you suggest the management of Wadia Industries Ltd., being its chief personnel manager? 10. How do you plan for qualitative aspects of human resources relating to values, attitude, ethos etc. of the young managers who will come out from their management institutes during 2005 - 2010? 11. What is recruitment. What is the most important source of recruitment for sons-of-the soil. Which of the sources is more important for recruiting software profeSSionals. 12. Explain the difference between recruitment techniques. 13. Do you prefer centralised recruitment or decentralised recruitment for recruiting chief executive officers. 14. What is recruitment appeal. 15. Do you think that recruitment practices in India differ from those of theoritical concepts. 16. How do you relate corporate mission and objectives with the recruitment objectives. 17. What is recruitment process. 18. What are the modem sources and techniques of recruitment.

3

Training and Induction

Induction: Meaning, Objectives and Purpose of Induction - Training: Meaning, Need for training, Benefits of Training, Identification of training needs, Methods of Training.

INTRODUCTION The next logical function after selection and placement is induction. The human resource department introduces the new employee to various departments and employees in the organisation. Now, we shall study the induction function of human resource management.

INDUCTION: MEANING Introducing the new employee who is designated as a probationer to the job, job location, surroundings, organisation, organisational surroundings and various employees is the final step of employment process. Some of the companies do not lay emphasis on this function as th~y view that this function will be automatically performed by the colleagues of the new employees. This is more so in educational institutions. This process gains more significance as the rate of turnover is high among new employees compared to that among senior employees. This is mainly because of the problem of adjustment and adaptability to the new surroundings and environment. Further, absence of information, lack of knowledge about the new environment, cultural gap, behavioural variations, different levels of technology, variations in the requirements of the job and the organisation also disturb the new employee. Further, induction is essential as the newcomer may feel insecure, shy, nervous and disturbing. This situation leads to instability and turnover. Hence, induction plays a pivotal role in acquainting the new employee to the new environment, company rules and regulations. Generally, the newcomer may expect opportunities for advancement, social status and prestige, responsibility, opportunities to use special aptitudes and educational background, challenges and adventure, opportunity to be creative and original and a lucrative salary. But jobs with low initial challenge, inadequate feedback and inadequate performance appraisal result in reality shock. Induction is necessary to reduce reality shock. "Induction is the process of receiving and welcoming an employee when he first joins a company and giving him the basic information he needs to settle down quickly and happily and start work." Lecture, handbook, film, group seminar are used to impart the information to new employees about the environment of the job and the organisation in order to make the new employee acquaint himself with the following heads: (i) About the company's history, objectives, policies, procedures, rules and regulations, codes etc.; (ii) About the department and (iii) About the superiors, subordinates etc.

Human Resources Management

70

(I) About the Company • History, growth, organisation and management, products, market, customers etc. of the company. • Basic conditions of employment - hours of work, shift, holidays, retirement benefits. • Pay, allowances, deductions. • Sickness rules, information - pay - sick leave. • Leave rules - casual, special, earned - holidays, vacation. • Work rules, work-load, use of materials, equipment, machine. • Disciplinary rules and procedure. • Grievance procedure. • Career path, promotion channel. • Unions, negotiating machinery. • Education, training and development facilities. • Health, safety, medical care arrangements. • Canteen and restaurant facilities. • Social benefits and welfare measures. • Telephone calls and correspondence. • Travelling and subsistence expenses. • Uniforms, clothing. • Valious employees - their designations - position in the organisation. In addition to using various routine measures, the personnel manager personally explains, clears doubts and queries of the new employee about the company. (II) About the Department The departmental head concerned introduces the new employee to the important employees and describes briefly about the department and the job. Then the supervisor concerned introduces the employee to all the employees in the section/unit, describes in detail the job or work, material, machine, equipment with which the worker has to work, process of the production, place of the employee's job and its significance in the process of production, his position in the departmental organisation structure, work distribution, assignment, working hours, shift, quality/standard to be maintained, customers/ users of the product/service etc.

(iii) About the Superiors, Subordinates etc. • • • • •

Introduce Introduce Introduce Introduce Introduce

the new employee to the superior to whom he should report. to other superiors with whom his work is indirectly related. him to his subordinates with whom he has to work. to the subordinates who will report to him. to his colleagues.

OBJECTIVE AND PURPOSE OF INDUCTION While introducing the new employee, the supervisor or manager should aim at: • Putting the new employee at ease. • Creating interest in his job and the company. • Providing basic information about working arrangements.

71

Training and Induction

• Indicating the standards of performance and behaviour expected of him. Making the employee feel that his job, however small, is meaningful, that he is not a cog in the vast wheel. • Informing him about training facilities. • Creating the feeling of social security. • Minimising the reality shock which would be caused due to incompatibility caused between the employee expectations and actually what the company provides/offers regarding pay, benefits, status, working conditions, responsibility, opportunity for growth, innovations, creative ideas etc. Induction Process: The following steps may be identified as the stages of induction process from the earlier discussion (Exhibit 3.1).

Exhibit 3.1

A NEW EMPLOYEE ORIENTATION SCHEDULE New Employee Job Title Department Reporting Date 8.00 AM to 9.00 AM

9.30 to 10.30 AM 10.30 to 11.30 AM 11.30 AM to 12.30 PM 12.30 PM to 3.00 PM

3.00 PM to 5 .00 PM

• • • •

Mr. Niraj Mittal, M.B.A. (Human Resources Management), Bangalore University, 2005. Human Resources - Executive Human Resources Development 1st June 2005. 8.00 AM Report to Ms. Roopa, HRD. Chief Ms. Roopa will: Distribute brochures describing the organisation's history, Products and Philosophy, Review the organisation's overall structure, authority structure within the HRD department. Review HRM Policies and Practices. Mr. Rao will discuss company benefits, New employee is to fill out health, tax and other relevant forms. Tour to main building and auxiliary facilities with Ms. Roopa. Lunch with HR manager and with Ms. Roopa. Mr. Swaraj will: • Provide a detailed tour of the Production. Marketing Departments. • Detailed discussions with Chief Executive-HRM about daily job routine and department policies and rules. Explain job expectations. Introduce Mr. Niraj to his Co-workers. New employee on his own to familiarise himself with his job.

Reporting for duty at a certain place to the head of the department concerned. The head of the department welcomes the new employee. Introduction to the organisational/branch head by the head of the department. Organisational/branch head introduces to important employees and describes about the organisation. • Departmental head introduces to all the employees of the department, describes the department, total work of the department etc. • Supervisor concerned introduces to his co-workers in that section/unit to the work/job, material, machine. • Providing information about the duties, responsibilities, rights, facilities, provisions, welfare measures etc. • Supervisor clarifies the doubts of the new employee about the work. Advantages of Induction: The advantages of induction are: (i) First impression matters a good deal and results in less turnov~r .

Human Resources Management

72

(ii) Newcomer adjusts himself to the work quickly, and it saves the time of the supervisor. (iii) Reduces employee dissatisfaction and grievances and

(iv) De'Jelops a sense of belongingness and commitment.

Induction Problems: Though the management takes all possible precautions, some problems crop up due to the varied ground realities. As is said, "first impression is the good impression.", the HR manager tries his level best to make the induction programme efficient. But sometimes it may fail, if the employee gets wrong impression at the first time. The problems include: (i) Busy and/or untrained supervisors may fail in carrying out the programme. (ii) The new employee may not cope up, if too much information is provided to the employee during the induction programme. (iii) The induction programme fails, if the employee is misplaced. (iv) The gap between the wider orientation by the human resources department and the narrow orientation by the department concerned. (v) Some organisations resort to 'trail by fire' orientation. (vi) The employee may be required to fill too many forms during the orientation/induction programme. How to Make the Induction Programme Effective? Though there are certain common problems in induction, the effect of these problems can be reduced by observing the following guidelines: (i) Feed forward of the possible problems and solutions therefor. (ii) A warm and friendly welcome will reduce the possible problems. (iii) A phased induction programme would place the new employee at ease and learn slowly. (iv) Periodical follow-up and filling the gaps in the information would reduce the problems. (v) Attaching a collegue to the new employee for a month would reduce the new employee's anxiety. (vi) Providing written and documented information through video cassettes and computer floppies would make the induction programme less loaded.

TRAINING · Organisation and individual should develop and progress simultaneously for their survival and attainment of mutual goals. So, every modem management has to develop the organisation through human resources development. Employee training is the most important sub-system of human resources development. Training is a specialised function and is one of the fundamental operative functions for human resources management. Now, we study this chapter in the following lines.

Meaning After an employee is selected, placed and introduced in an organisation he/she must be provided with training facilities in order to adjust him to the job. Training is the act of increasing the knowledge and skill of an employee for doing a particular job. Training is a short-term educational process and utilising a systematic and organised procedure by which employees learn technical knowledge and skills for a definite purpose. Dale S. Beach defines the training as " ... the organised procedure by which people learn knowledge and/or skill for a definite purpose." In other words, training improves, changes and moulds the employee's knowledge, skill, behaviour and aptitude and attitude towards the requirements of the job and the organisation. Training refers to the teaching and learning activities carried on for the primary purpose of helping members of

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Training and Induction

an organisation to acquire and apply the knowledge, skills, abilities and attitudes needed by a particular job and organisation. Thus,training bridges the differences between job requirements and employee's present specifications.

Training and Development Employee training is distinct from management development or executive development. While the former refers to training given to employees in the areas of operations, technical and allied areas, the latter refers to developing an employee in the areas of principles and techniques of management, administration, organisation and allied areas. Table 3.1 presents differences between training and development.

I}Table-" Differences between Training and Development

Area

Training

Development

Content

Technical skills and knowledge

Managerial and behavioural skills and knowledge

Purpose

Specific job-related

Conceptual and general knowledge

Duration

Short-term

Long-term

For whom:

Mostly technical and nonmanagerial personnel

Mostly for managerial personnel

Importance of Training The importance of human resources management to a large extent depends on human resources development and training is its most important technique. As stated earlier, no organisation can get a candidate who exactly matches with the job and the organisational requirements. Hence, training is important to develop the employee and make him suitable to the job. Training works towards value addition to the company through HRD (See Box 3.1)

The top 10 companies in terms of valuemultiples, advocate that they could multiply the value addition due to their concern and recognition of the importance of training in HRD and in value addition. These top 10 companies

include Hindustan Lever, Wipro, HCL Technologies, Infosys Technologies, lTC, Reliance Industries, Zee Telefilms, Reliance Petroleum, Satyam Computer Services and Ranbaxy Laboratories.

Job and organisational requirements are not static, they are changed from time to time in view of technological advancement and change in the awareness of the Total Quality and Productivity Management (TQPM). The objectives of the TQPM can be achieved only through training which develops human skills and efficiency as happened in Escorts and Birla VXL. Trained employees would be a valuable asset to an organisation. Organisational efficiency, productivity, progress and development to a greater extent depend on training. If the required training is not provided, it leads to performance !ailure of the employees (See Box 3.2). Organisational objectives like viability, stability and growth can also be achieved through training. Training is important as it constitutes a significant

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Human Resources Management

Mr.Jaywant Rao, was placed in Vijayawada after a week induction training in Mumbai as a Sales Executive by Cure Care Pharma.

Mr.Jaywant Rao was placed on the job without any in-field training. The consequence is that he could not improve sales even after one year.

(Source: Modified Version from Human Capital, July 2001).

part of management control. Training enhances 4Cs viz. competence, commitment, creativity and contributi'o n for the organisation.

BENEFITS OF TRAINING Benefits of training are presented in Exhibit 3.2.

Exhibit 3.2 BENEFITS OF TRAINING How Training Benefits the Organisation • Leads to improved profitability and/or more positive attitudes toward profits orientation • Improves the job knowledge and skills at all levels of the organisation • Improves the morale of the workforce • Helps people identify with organisational goals • Helps create a better corporate image • Fosters authenticity, openness and trust • Improves the relationship between boss and subordinate • Aids in organisational development • Leams from the trainee • Helps prepare guidelines for work

• Aidltin understanding and carrying out organisational policies • Provides infonnation for future needs in all areas of the organisation • Organisation gets more effective in decision-making and problem solving . • Aids in development for promotion from within • Aids in developing leadership skill, motivation, loyalty, better attitudes and other aspects that successful workers and managers usually display • Aids in increasing productivity and/or quality of work • Helps keep costs down in many areas, e.g. production, personnel, administration etc. • Develops a sense of responsibility to the organisation for being competent and knowledgeable. • Improves labour-management relations • Reduces outside consulting costs by utilising competent inte'1lal consulting

75

Training and Induction • Stimulates preventive management as opposed to putting out fires • Eliminates sub-optimal behaviour (such as hiding tools) • Creates an appropriate climate for growth and communication • Aids in improving organisational communication • Helps employees adjust to change • Aids in handling conflict, thereby helping to prevent stress and tension.

Benefits to the Individual Which in Turn Ultimately Should Benefit the Organisation • Helps the individual in making better decisions and effective problem solving • Through training and development, motivational variables of recognition, achievement, growth, responsibility and advancement are internalised and operationalised .

• Aids in encouraging and achieving self-development and self-confidence • Helps a person handle stress, tension, frustration and conflict • Provides information for improving leadership knowledge, communication skills and attitudes • Increases job satisfaction and recognition • Moves a person towards personal goals while improving interactive skills • Satisfies personal needs of the trainer (and trainee) ,

• Provides the trainee an avenue for growth and a say in his/her own future • Develops a sense of growth in learning • Helps a person develop speaking and listening skills; also writing skills when exercises are required. • Helps eliminate fear in attempting new tasks.

Benefits in Personnel and Human Relations, Intra and Inter-group Relations and Policy Implementation • Improves communication between groups and individuals • Aids in orientation for new employees and those taking new jobs through transfer or promotion • Provides information on equal opportunity and affirmative action • Provides information on other governmental laws and administrative policies • Improves inter-personal skills • Makes organization policies, rules and regulations viable • Improves morale • Builds cohesiveness in groups • Provides a good climate for learning, growth, and co-ordination • Makes the organisation a better place to work and live. (Source: M.J. Tessin, "Once Again, Why Training?, "Training Feb., 1978, p.7.J.

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Human Resources Management

Need for Training Specifically, the need for training arises due to the following reasons: (i) To Match the Employee Specifications with the Job Requirements and Organisational Needs: Management finds deviations between employee's present specifications and the job reql..lirements and organisation 10 years but less than 20 years/>20 years but less than 30 years/Above 30 years. Please encircle the number which is appropriate for you. '5' for agree completely, '4' agree to some extent, '3' for neither agree nor disagree, '2' for disagree and '1' for completely disagree.

Statement

Scale

Job and Organisational Factors: 1. I am satisfied with the duties and responsibilities of my current job 54321 2. I am satisfied with the salary and benefits of my current job 54321 3. I am satisfied with the promotional opportunities in my current job 54321 4. I am satisfied with the relations with my superior 54321 5. I am satisfied with my subordinates 54321 6. I am satisfied with the climate of my present organisation 54321 7. I am satisfied with training and development facilities and efforts of my organisation 54321 8. I am satisfied with employment policies and practices of my organisation 54321 9. I am satisfied with retention policies of my organisation 54321 10. I am satisfied with industrial relations situation of my organisation 5432 1 Other Organisational Factors 11. Salary and benefits in other organisations are based on performance and output ,5 4 3 2 1 12. Salary and benefits levels in other organisations are highly encouraging 54321 13. Career progression in other organisations is highly attractive 5432·1 14. Developmental facilities in other organisations are encouraging 54321 15. Performance and innovation are recognised better in other organisations 54321

Skill Development Opportunities in Business: 16. Business opportunities are highly encouraging to take up own business 17. Monetary returns in business are better than salaries and benefits 18. I can get better recognition in my own business than as an employee 19 I can serve the society better, if I take up my own business 20. I will have full freedom, if I take up my own business Family Reasons: 21. I prefer to quit the job as I am badly in need of large funds for my childreJ1 education 22. I need large funds for 'my children marriage 23. I need large funds to buy house and other fixed property to settle down 24. My children settle-down in their life, so I need not work further more 25. My health does not permit me to continue the job 26. Safety and health factors are not conducive in my present organisation 27. Safety and health in the city where I am residing are not conducive 28. I have to take care of health of my wife 29. I have to take care of health of my other dependents Other Reasons: 30. I plan to spend my remaining life peacefully 31. I plan to spend my remaining life in religious organisations 32. I plan to spend my remaining life in social organisations Please explain your other views: Thank you very much for your time and effort in filling his questionnaire.

With regards, Name of the Student

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54321 54321 54321 54321 54321

54321 54321 54321 54321 54321 54321 54321 54321 54321 54321 54321 54321