Human Resource

Management

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By keeping in mind the outline for Human resource Management MBA III of university of
Azad Kashmir, I put my knowledge and research into work to compile these
comprehensive notes. These will prove a good source of knowledge and preparation
of exam.

Please support & appreciate my effort by not trying to reproduce my work without any
prior permission.

Prof. Ms Ambreen
Bilal MBA Finance, MSC
Econamice, B.Ed,
University of AJK

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 CONTENTS

Part I Introduction to HRMS

1.1 Introduction and meaning 06

1.2 Basic of HRM 08

1.3 Objective of HRM 12

1.4 Environmental factor in HRM 13

1.5 Function / activities 17

1.6 HRM departments/ Area 19

Part II Acquiring HR (Staffing)

2.1 EEO and discrimination 13

2.2 Strategic HR planning (SHRP) 24

2.3 Job analysis 28

2.4 Job design 36

2.5 Recruitment 46

2.6 Selection 54

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 CONTENTS

Part III Training and development of HR

3.1 Orientation 65

3.2 Training 67

3.3 Training methods 69

3.4 Training and learning 73

3.5 Placement 76

3.6 Separations 77

3.7 Development 78

3.8 Career planning and development ------------------------------------------- 81

Part IV Rewarding and motivating HR

4.1 Performance Appraisal 91

4.2 Reward and Compensation 98

Part V Labor management relations and collective bargaining

5.1 Labor management relations and collective bargaining --------- 107

5.2 Discipline & Governance handling ------------------------------------------ 109

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 Outline 01

Introduction to HRM

1.1 Introduction and meaning & Definition of HRM

1.2 The basics of management

 Planning
 Organizing
 Leading
 Controlling

1.3 Objectives of HRM

 Organizational objectives
 Functional objectives
 Social objectives
 Personal objectives

1.4 Environmental factors in HRM

 External factors
 Internal factors

1.5 Functions / Activities of HRM

 Employment
 Transfer, Promotion, Layoff
 Training and development
 Compensation administration

 Health and safety

 Discipline and discharge etc.

1.5 HRM departments / areas

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 1.1-INTRODUCTION AND MEANING

Human resource refers to the people in an organization.

Introduction to HRM:
Human Resource Management (HRM) is the strategic approach to managing people within
an organization to maximize their performance and ensure alignment with the organization's
objectives. It is a vital function that focuses on acquiring, developing, motivating, and retaining
talent, thereby contributing to the overall success and sustainability of the organization.

Why HR or people are important to an organization?

 People are the common element in the organization.

 They create the strategies and innovations for which organizations are noted.
 People make an organization efficient.
 People help in increasing productivity of an organization.

In short we can say “assets make things possible, people make things

happen”. Now let‟s see what is human resource managed.

Definition:

According to business directory

„Human resource management is a management of people to achieve individual

behavior and performance that will enhance an organization‟s effectiveness‟.

„A set of interrelated functions and process whose goal is to attract, socialize, motivate,
maintain and retain an organization‟s employee‟.

„HRM can be defined as a field of management which relates to planning, organizing,

directing and controlling the functions of procurement, development, maintenance
and utilization of labor force with a view to attaining organizational goals economically
and effectively‟.

Explanation

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 These definitions give an idea that is an area within management that deals
primarily with activities that directly affect how employees are brought into the
organization and how they are treated once they are employed. These activities
include recruiting, selecting, training, evaluating and compensating employees as well
as other activities such as managing labor relations working conditions and other
employment related issues.

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HUMAN RESOURCE MANAGEMENT CHART OF UNILEVER 01

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 1.2-BASICS OF HUMAN RESOURCE MANAGEMENT

Management

A universal concept that is needed in every organization whether it is a business

organization or a non-business organization such as hospital, school, etc., is known
as Management. An organization‟s success depends on the successful functioning of its
management and is always required whenever human and non-human resources of an
organization work together for the accomplishment of any objective.

Traditional Definitions of Management

“Management consists of getting things done through others. A manager is one who
accomplishes objectives by directing efforts of others.” – C.S. George

“Management is the art of getting things done through others.” – Follett

Modern Definitions of Management

“Management is the creation of an internal environment where individuals working in a

group can perform effectively and efficiently for the achievement of organisational goals.” –
Koontz and Donnell

“Management is defined as the process of planning, organising, actuating, and controlling

of an organisation‟s operations in order to achieve coordination of the human and material
resources essential in the effective and efficient attainment of objectives.”– Trewelly and
Newport

“Management is the process of working with and through others to effectively achieve
organisational objectives by efficiently using limited resources in the changing environment.”–
Kreitner

The basics of management

Management typically requires the condition of several vital components that

will call function. The main /basic function of management is...

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 Planning

HRM STAFFING

Controlling  Strategic HRM Organizing

Planning
 Recruiting
 Selection

Leading

1.Planning

A management functions focusing on setting organizational goals establishing

strategy and developing plans to coordinate activities.

Planning is future-oriented and determines an organization‟s direction. It is a rational and

systematic way of making decisions today that will affect the future of the company. It is a
kind of organized foresight as well as corrective hindsight. It involves predicting of the future as
well as attempting to control the events. It involves the ability to foresee the effects of current
actions in the long run in the future.

 Key aspects of planning:

o Establishing objectives.
o Forecasting future conditions and trends.
o Developing detailed action plans.

Peter Drucker has defined planning as follows:

“Planning is the continuous process of making present entrepreneurial decisions systematically

and with best possible knowledge of their futurity, organizing systematically the efforts needed
to carry out these decisions and measuring the results of these decisions against the
expectations through organized and systematic feedback”.

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2.Organizing

A management function that deals with determining what job are to be

done, by whom, where decisions are to be made, and how to group
employees.
Organizing requires a formal structure of authority and the direction and flow of such
authority through which work subdivisions are defined, arranged and coordinated so that
each part relates to the other part in a united and coherent manner so as to attain the
prescribed objectives.

According to Henry Fayol, “To organize a business is to provide it with everything useful or its
functioning i.e. raw material, tools, capital and personnel‟s”.

Thus the function of organizing involves the determination of activities that need to be done in
order to reach the company goals, assigning these activities to the proper personnel, and
delegating the necessary authority to carry out these activities in a coordinated and cohesive
manner.
It follows, therefore, that the function of organizing is concerned with:
1. Identifying the tasks that must be performed and grouping them whenever necessary
2. Assigning these tasks to the personnel while defining their authority and responsibility.
3. Delegating this authority to these employees
4. Establishing a relationship between authority and responsibility
5. Coordinating these activities

3.Leading

Function that includes motivating employees, directing others, selecting the

most effective communication channels and resolving conflicts. The leading function is
concerned with leadership, communication, motivation, and supervision so that the
employees perform their activities in the most efficient manner possible, in order to
achieve the desired goals.
The leadership element involves issuing of instructions and guiding the
subordinates about procedures and methods.

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 The communication must be open both ways so that the information can be
passed on to the subordinates and the feedback received from them.
Motivation is very important since highly motivated people show excellent
performance with less direction from superiors.
Supervising subordinates would lead to continuous progress reports as well as
assure the superiors that the directions are being properly carried out.

4.Controlling

Monitoring activities to ensure they are being accomplished as planned and

correcting any significant deviation.
The function of control consists of those activities that are undertaken to ensure
that the events do not deviate from the pre-arranged plans. The activities consist of
establishing standards for work performance, measuring performance and comparing it
to these set standards and taking corrective actions as and when needed, to correct
any deviations.
According to Koontz & O‟Donnell, “Controlling is the measurement & correction
of performance activities of subordinates in order to make sure that the enterprise
objectives and plans desired to obtain them as being accomplished”.
The controlling function involves:
a. Establishment of standard performance.
b. Measurement of actual performance.
c. Measuring actual performance with the pre-determined standard and finding
out the deviations.
d. Taking corrective action.

Management roles

In the late 1960s a graduate student at MIT, Henry Mintzberg , undertook a

careful study of five executives to determine what these managers did on their jobs. On
the biases of his observation of these managers, Mintzberg concluded that managers
perform 10 different, highly interrelated roles or set of behaviors attributes to their jobs.

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Management roles

ROLE DESCRIPTION

Interpersonal

Figurehead Symbolic head required to perform a number of routine duties of a

legal or social nature.

Leader Responsible for the motivation and direction of employees

Liaison Maintains a network of outside contacts who provide favors

and information.

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 Informational

Monitor Receives wide verity of information, serves as nerve centre of

internal and external information of the organization.

Disseminator Transmits information received from outsiders or from

other employees to member of organization

spokesperson Transmits information to outsiders on org. plans, polices, action

and results serves as expert on organizations industry

Decisional

Entrepreneur Searches organization and its environment for opportunities

and initiates projects to bring about change.

Disturbance handler Responsible for corrective action when organization faces

important, unexpected disturbances

Resources allocator Make or approves significant organizational decision.

Negotiator Responsible for representing the organization at major negotiation.

Management skills

Still another way of considering what managers do is to look at skills or

competencies they need to achieve their goals.

Robert Katz has identified three essential management skills, technical skills, human skills.

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Technical skills

Technical skills encompass the ability to apply specialized knowledge or

expertise. When you think of the skills held by professionals such as civil engineers or oral
surgeons, you typically focus on their technical skills, through extensive formal
education, they have learned the special knowledge and practices of their field.

Human skills

The ability to work with, understand and motivate other people both individually
and in groups describes human skills. Many people are technically proficient but
personally incompetent. They might be poor listeners, unable to understand these
needs of others, or have difficulty managing conflicts. Because managers get thing
done through other people, they must have good human skills to communicate,
motivate and delegate.

Conceptual skills

Managers must have the mental ability to analyze and diagnose complex
situations. These takes require conceptual skills. Decision making for instances require
managers to identify problems, develop alternative solution to correct those problems,
evaluate those alternatives and select the best one.

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 1.3-OBJECTIVES OF HUMAN RESOURCES MANAGEMENT OR

RELATIONSHIP OF HR ACTIVITIES / FUNCTION TO HR OBJECTIVES

HR OBJECTIVES

ORGANIZATIONAL 2-FUNCTIONAL 3-SOCIAL PERSONAL

OBJECTIVES OBJECTIVES OBJECTIVES OBJECTIVES

Supporting activities / 1. Appraisal 1. Legal 1. Training and

function 2. Placement compliance development
3. Assessment 2. Benefits 2. Appraisal
Human resource planning
3. Union- 3. Placement

Employee relation management 4. Compensation

relations 5. assessment
3-Selection

4-Training and development

5-Appraisal

6-Placement

Objectives

Objectives are benchmarks against which actions are evaluated.

Overall objectives of HRM

Overall objectives of HRM are to improve the productive contribution of people

to the organization in ways that are strategically, ethically and socially responsible.

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There are four objectives of HRM:

1. Organizational objectives

Line and staff department. The HRM department exist to help managers achieve
the objectives of organization.HR management is not an end in itself, it is only a means
of assisting managers with their HR issues

2. Functional objectives

To maintain the department contribution a level appropriate to the

organization‟s needs. Resources are wasted when HR management is more or less
sophisticated then the organization demands. Realizing that the HR department had
grown too large.

3. Social objectives

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

while minimizing the negative impact of such demands on the organization.

4. Personal objectives

To assist employees in achieving their personal goals, at least insofar those goals
enhance the individual‟s contribution to the organization. The personal objectives of
employees must be met if workers are to be maintained, retained and motivated
otherwise they may leave.

1.4-ENVIORNMENTAL FACTOR IN HUMAN RESOURCE MANAGEMENT

The factors of HRM can be

 External environment
 Internal environment

EXTERNAL ENVIORNMENT

These external factors are,

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1- Workforce diversity

Managers are confronted daily increasing diversity of workforce, within this

diversity of national origins, there is an even wider diversity of cultures, religions ,
languages, educational attainment, skills , values, ages, races, genders and other
differentiating variable.
HR department value individual diversity because it brings a rich source of
innovative prospective to the company.

2- Technological factors

Technology is rapidly changing in many areas such as robotic technological

advance being introduced to organization at ever increasing pace. These changing
technologies reshape the whole organizational structure.

3- Economic factors

HRM department may face following economic factors,

 Global competition
 Labor costs are increasingly important
 Labor markets are international
 Increased demand for certain skills and knowledge

 Less demand for unskilled labor

 Stage of business cycle

4- Government factors

How successfully a firm manages its HR depends largely on its ability to deal
effectively with government regulations. Operating within the legal framework requires
keeping track of the external legal environment and developing internal system to
ensure compliance.

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5- Global competition

One of the most dramatic challenges facing firms is how to compete against
foreign firms, both domestically and abroad.

6- Brain drain

The loss of high talent key personnel to competitors or start- up ventures. High-
tech firms are practically affected to these problems.

INTERNAL FACTORS

Following are internal factors of HRM

1- Unions

The HR environment, unions represent on actual challenges to organized companies.

HR has to keep satisfied the labor unions while protecting interest of the organization.

 Demands of unions

 Wages and benefits

 Negotiating with unions
 Ours and working conditions

2- Information system

HR Should develop an effective information system so that information can be

available at right time to all audience. The information requirements of a full service
department are only hinted at by question such as

 What are the duties and responsibilities of every job in the organization?

 What are the skills possessed by the every employee?

 How do internal constraints affect the organization?
 What are the current trends in competition of employees?

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3- Organization culture

HR has to protect and project the culture of an organization. Organizational

culture is the product of all the organizations features, its people, its success, its failures.
Organizational culture reflects the past and shapes the future.

4- Organization conflicts

Resolving and managing conflict arising in an organization is a challenge for HR.

5- Organization restructuring

Restructuring an organization for betterment is also an important role of HR and also it is a

difficult job as
External factors
well.

i
Frame work and
challenges

ii
Objectives Preparation
and selection
v  Social
Employee’s relation  Organizational
and assessment  Functional
 Personal iii
Development
and evaluation

iv
Compensation and
protection

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HRM MODEL

Internal factors
 1.5-FUNCTIONS / ACTIVITIES OF HRM

Generally, HRM department people performs following functions

1- Employment

This Function includes recruitment, selection and induction into the organization.
The first decision by management is to add someone in organization that is
identification need of a person, skill necessary to do the job and then selecting right
candidate.

2- Transfer, Promotion, Layoff

When employees are moved from one department to another either because of
the needs of the business or because of individual request, the personnel records may
be studied to ascertained that they possess the requisite skills.

Layoffs typically are processed by the personnel department to insure that the paper
order of preference is followed.

When a vacancy occurs in a position, it may be filled by promoting a competent employee.

3- Training and development

Employees can get trained by two ways.

 On-job training and coaching by line supervisor.

 In-service classroom courses and it is supervised by personnel unit.

In organizational development activity the personnel specialist serves in a consulting

role to an operating department. He plans programs in corporation with managers of
operating departments, diagnoses people problems, conducts workshops and provides
feedback to the operating managers.

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4- Compensation administration

Periodic wage and salary surveys of the labor market are conducted by
personnel department and then pays are raised accordingly.

5- Health and safety

An organizational health program should consist of activities identification and

control of agents within the working environment that can cause occupational
diseases. Some agents are gases, dusts, nose, heat, radiation etc.

Other element of health program is pre-employment medical examinations,

periodic examination and first aid facility at work place.

For providing safety to the employees the safety director must prepare safety
displays distribute safety leaflets, and develop safety instruction material.

6- Discipline and discharge

Discipline and discharge has two principal meanings.

1. It means „‟training that molds or correct‟‟ This means the achieving and
maintaining of orderly employee behavior because the people understand and
believe in the established codes of conduct.

The second meaning is „‟punishment of wrongdoers.

2. The personnel department is responsible for formulating the rules and range of
penalties for each offence.

Discharge is severe penalty and should be used only when a very clear case can be shown.

7- Labor relation

The personnel department tasks involved in labor relations is contract

negotiation, contract interpretation and administration and grievance handling.

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8- Benefits and services

Under this category personnel department has to deal with these matters like
pensions group, life insurance, sickness, leave pay plans, supplemental unemployment
compensation, loan funds, credit unions, social programs recreational programs and
college tuition refund plans.

9- Organizational planning

The personnel office gathers data, does research, prepares plans and gives
advice to the president for organizational planning.

Now what is organizational planning? Organizational planning requires the

development of a concept of company as a structure or system. The organizational
planning staff must prepare organizations charts and positions guides.

10- Organization development

The major personnel activity is organization development. Organization

development is a general approach for improving the effectiveness of an organization
that utilize a verity of applied behavioral science methodologies. The objectives of
organizational development are to increase the level of trust and supportiveness
among people in the organization, enhance interpersonal skills make communication
more open and direct, directly confront problems and to tap the knowledge of all who
can contribute to problem solutions.

11- HR planning

HR planning is the process by which a firm insures that it has right member of
qualified persons available at the proper times, performing jobs that are useful to the
organization and which provide satisfaction for the individuals involved.
The elements of human resource planning are

 Goals and planning of organization

 Current human resource situation.

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  Human resource forecasting.
 Designing programs to implement the plans.
 Audit and adjustment.

12- Equal employment opportunity

The chief personnel executive should follow the rules of equal employment
opportunity and should not made employment opportunity discrimination on the bases
of age, sex, religion, race, nation etc.

13- Personal and behavioral research

Important areas for investigation in this field are employee‟s attitudes and
motivation, predicting success in management and organizational relationship,
improving productivity increase quality of working life.

14- Personnel information system

Today many organization uses mathematical analysis, computers, database to

HR planning, skill inventory, employee benefits analysis and productivity studies.

1.6-HRM DEPARTMENT / AREAS

We can divide HRM department into sub departments

President

V/P of HRM

Employment Appraisal & Training & Employee Employee’s

compensation development safety relation

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 1- Employment

These area of HR deals with recruitments, selection, posting and

placement while keeping certain principals in minds „equal employment
opportunity‟ for all.

The employment function of HR is the foundation of talent management in any

organization. It focuses on attracting, sourcing, and hiring the best candidates for various
roles. Key activities include:

 Recruitment: Identifying organizational staffing needs and finding suitable

candidates through job postings, career fairs, employee referrals, and external
recruitment agencies.
 Selection: Screening applications, conducting interviews, and administering tests to
assess candidates‟ skills, experience, and cultural fit.
 Posting and Placement: Ensuring the right person is placed in the right job to
maximize efficiency and productivity.
 Compliance: Adhering to labor laws and HR policies, including the principle of
Equal Employment Opportunity (EEO), this ensures that hiring decisions are free from
discrimination based on race, gender, religion, or disability. This area ensures that
an organization is staffed with capable individuals while fostering diversity and
inclusion.

2- Appraisal and compensation

This department determines pay, pay increase, polices, etc. and

also evaluate employees performance against set standards.

This HR function deals with the financial and motivational aspects of employee
management. It includes:

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  Pay Structure: Designing salary packages that are competitive and equitable,
considering job roles, industry standards, and employee qualifications.
 Pay Increases and Incentives: Implementing policies for merit-based salary
adjustments, bonuses, and other monetary rewards to recognize outstanding
performance.
 Performance Appraisal: Measuring employees' work against established standards
through tools like key performance indicators (KPIs), 360-degree feedback, and
regular performance reviews.
 Benefits and Perks: Managing non-monetary compensation, such as health
insurance, retirement plans, vacation days, and other perks, to enhance job
satisfaction and retention.
This area ensures employees feel fairly compensated and motivated to contribute
their best to organizational goals.

3- Training and development

This department is responsible skills development of employees.

This area emphasizes enhancing the knowledge, skills, and abilities (KSAs) of employees to
align with organizational needs and future goals. Key responsibilities include:

 On boarding Training: Introducing new employees to company policies, culture,

and workflows to ensure a smooth transition into the organization.
 Skill Development Programs: Offering technical and soft skills training to improve job
performance and career growth.
 Leadership Development: Preparing employees for leadership roles through
mentorship, workshops, and succession planning.
 Continuous Learning: Encouraging a learning culture by providing access to
resources such as e-learning platforms, seminars, and certifications.
Investing in training and development helps organizations remain competitive and
employees feel empowered.
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 4- Employees safety

Take care of employee‟s health hazards during working, insurance, etc.

Employee safety is a critical area focused on maintaining a secure work environment and
promoting employee well-being. Key aspects include:

 Workplace Health and Safety Policies: Creating and enforcing safety guidelines to
prevent accidents and injuries on the job.
 Risk Assessments: Identifying potential hazards in the workplace and implementing
measures to mitigate them.
 Employee Health Programs: Offering resources such as mental health support,
wellness initiatives, and medical insurance.
 Compliance with Safety Regulations: Adhering to occupational health and safety
standards (e.g., OSHA guidelines).
Ensuring employee safety fosters trust and demonstrates the organization‟s
commitment to its workforce.

5- Employment relation

This includes activities like employees counseling, employee‟s negotiation etc.

Employment relations are essential for maintaining a positive, collaborative, and

compliant workplace. This area encompasses:

 Employee Counseling: Addressing personal or work-related concerns through

structured support systems to improve employee morale and well-being.
 Conflict Resolution: Mediating disputes between employees or between
employees and management to maintain harmony.

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 Negotiations: Facilitating discussions around wages, work hours, and benefits, often
in the context of labor unions or collective bargaining agreements.
 Grievance Handling: Establishing formal mechanisms for employees to raise
concerns and ensuring fair resolutions.
 Engagement and Communication: Promoting open dialogue, transparency, and
inclusion to build trust and loyalty.
Strong employment relations ensure alignment between organizational goals and
employee satisfaction, leading to higher productivity and retention.

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 OUTLINE 02

Acquiring HR (Staffing)

2.1 Equal Employment Opportunity (EEO) and Discrimination

2.2 Strategic HR planning (SHRP)

 Meaning and purpose

 HR information system
 The linkage to strategic HR planning

 Steps is HRP
 Assessing currant HR
 The demand for labor
 The implementation of future supply
 Estimated changes in external supply
 Demand and supply of HR
 Implementation of HRP

2.3 Job analysis and design

2.4 Job design

 Job content
 Job design
 Job design Approaches and motivation

2.5 Recruitment

2.6 Selection

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 2.1-EEO AND DISCRIMINATION

Meaning

EEO stands for equal employment opportunity (EEO).

„EEO laws require managers and human resource departments to provide

applicants an equal opportunity for employment without regard to race, region, sex,
disability, pregnancy, national region or age‟

These EEO laws have an impact on every HR activity including:

1. Planning
2. Recruiting
3. Selection
4. Placement
5. Training
6. Compensation
7. Employee Relation

As discussed earlier EEO laws compliance is one of HR challenges, that organizations

has to face.

An overview of EEO laws

Types Source Objectives & jurisdiction

Federal act Passed by To ensure EEO with employees at

congress/assembly/and govt. level and associated firms at
enforced by executive federal level
branch
State & local laws Enacted by To ensure EEO at state / province level
local/provincial
legislatives.

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 Executive orders Decreed by the president To ensure EEO at organization level

Source of variations of EEO

The main source of violation of EEO is „‟discrimination‟‟ on the basis of a person‟s sex,
race, or color.

What is discrimination?

It means dealing/ training people with some profile, differently there are two
types of discrimination.

Favorable discrimination

Discrimination on the basis of their effort, performance or another work-related

criterion remains both permissible and divisible.

Adverse/ Disparate discrimination

When the member of a protected class receives unequal treatment because their
membership in that class.

2.2 Strategic HR planning (SHRP)

Meaning and purpose

To ensure that appropriate personnel one available to meet requirements set

during the strategic planning process, human resource managers engage in
employment planning. The purpose of this planning efforts is to determine what HRM
requirements exists for current future supplies and demands workers.

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The linkage to strategic human resource management

Mission Determine what business the organization will

Objectives & Goals Setting goals and objectives

Strategy Determine how goals and objectives will be attained

Structure Determining what jobs need to be done and to

People Matching skills, knowledge, and abilities to

Assessing current human resources

Assessing current human resource management brings by developing a profile

of organization‟s current employees. This internal analysis includes information about the
workers and skills they currently possess.

One tool for assessing current human resource is maintaining „‟ human inventory chart‟‟

Human resource information system(HRIS)

A computerized system that assist in the processing of HRM information. The HRIS
is design to quickly fulfill the human resource management information needs of the
organization. The HRIS is database system that keeps important information about
employees in a control and accessible location.

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Determining the demand for labor

Once assessment of the organization‟s current human resources situation has

been made and the future direction of the organization has been considered its time to
develop a projection of future human resource needs

Future human resource needs projection can be done

 By keeping an analysis of past trends.

 By knowing organizational plans to expand.
 By having a look at project, which organization is going to undertake.

The implementation of future supply/ predicting future supply

Estimating changes in internal supply requires HRM to look at those factors that
can either increase it employee base.

Factors that can increase employee base,

 New hires
 Contingent
 Transfer-in
 Individuals returning from level

Factors which can decrease employee’s base

 Retirement
 Dismissals
 Transfer-out of the unit

 Layoffs
 Voluntary quits
 Sabbaticals
 Prolonged illnesses
 Deaths.

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Estimated changes in external supply

Factors discussed in previous topic are internal factors that affect supply of labor.
Mow lets see the external factors that affects the external supply.

 Recent graduates from school , colleges and universities

 Entrants to the workforce from resources other then school may include people
seeking part time jobs.
 Students seeking work to pay for their education
 Employees returning from military services
 Jobs seeks who have been recently laid off
 Migrations into the country
 Migrations out of the country

Demand and supply of HR

The objectives of employment planning are to bring together the forecasts of

future demands for workers and the supply for human resources, both current and
future.

The result of the effort is to pinpoint shortages both on member and in kind to highlight
areas where overstaffing may exists.

Implementation of HR

As define earlier HRP is a process of determining and organizations HR

needs.
OUT COMES

HRP can be implemented as follows

Demand for
labor

Demand
Define Establish Asses current Recruitment
Compare exceeds
organization corporate HR
mission goals and demand and
objectives HRMS job supply of HR Supply
analysis exceeds decruitment

Supply of
HR
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 Job analysis and design

2.3 Job

analysis Definition

1- “Provide information about jobs correctly being done and the knowledge, skills
and abilities that individuals need to perform the job adequately‟‟

2- „‟ Job analysis is the systematic process of collecting and making judgments about
all important information related to job. Job analysis is the procedure through which
u determine the duties and nature of the jobs and the kinds of people who should
be hired for them. Utilize the information it provides to write job descriptions and job
specifications that are utilized in recruitment and selection, completion,
performance appraisal and training‟‟

3- „‟Job analysis is the process of determining by observation and study and

reporting pertinent about a specific job‟‟

Explanation

It include the identification of the tasks performed, the machines and equipment
utilized, the materials product or services involved , the training, skills, knowledge, and
personal traits required of the writer.

Basic terminology

Let‟s define the term used during discussion of the job analysis

1- Job

A group of tasks that must be performed if an organization is to achieve its goals.

2- Position

The tasks and responsibilities performed by one person, there is opposition for
every individual in an organization.

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3- Tasks

A distinct, identified able work activity composed of motion.

4- Duty

A larger work segmented composed of several tasks that are performed by an individual

5- Responsibility

An obligation to perform certain tasks and duties.

Job analysis process

The job analysis process has the following steps

1. Identify how the information will be used because that will determine what idea will be
connected and how it will be collected. Interviewing and position analysis questionnaire
and some examples of the data collection techniques.
2. Review relevant background information such as organization chart, process chart, and
job descriptions.
3. Select representative positions to analyze because there may be too many similar jobs to
analyze and it may not be necessary to analyze them all.
4. Analyze the job by collecting data on the activities, required employee behaviors, working
conditions and human traits and abilities needed to perform the job.
5. Review and verify the job analysis information with job incumbents to confirm that is
factually correct and complete.
6. Develop a job description and job specification from the job analysis information

32
Structure

Understand the purpose of

the job analysis

Job description and job Understand the roles of

specification develop. jobs in the organization

Review and verify job Identify and analyze the

analysis information position

Determine how to collect

job analysis information

Job analysis procedures following three important documents

 Job description
 Job specification
 Job evaluation

1- Job description

A job description is a written statement of what the job holder actually does how he
or she does it , and under what conditions the job is performed. There is no standard
format for writing job descriptions but most descriptions include sections an;

3. Job identification
4. Job summary
5. Relationship, responsibilities and duties

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 6. Authority of incumbents
7. Standards of performance
8. Working conditions
9. Job specification

2- Job specification

A job specification is a document containing the maximum acceptable

qualifications that a person should possess in order to perform a particular job. Items
typically included in the job specification are educational requirements, experience,
personality traits, and physical abilities.

3- Job evaluation

In job evaluation process the worth of job is identified based upon job
comparability and according to worth , importance of job and relative value
compensation is designed and selected. It suggest about the relevant importance of a
particular job in organization.

34
 Job analysis

Job description Job specification Job evaluation

A statement containing A statement of human A statement that specifies

items such as… qualification necessary to the relative values of each
do the job. Usual conditions job in the organization
 Job title such as
 Location  Compensation
 Machines, tools,  Education  Administration
equipment, material  Experience  Demand match in
& forms used  Training terms of skills,
 knowledge and
Supervision given or  Judgment
retired working abilities
 Initiative
conditions  Provide valuable
 Physical effort information
 hazards
 Physical skills
 Responsibilities
 Communication
skills

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Job analysis – uses

Job analysis can be put in to following uses

1- Staffing

All areas of staffing would be hazards if the recruiter did not know the
qualifications needed to perform.

2- Training and development

If the specification suggests that the job requires a particular knowledge, skill or
ability and the person filling the position does not possess all the qualification required,
training or development is probably in order.

3- Compensation and benefits

The relative value of a particular job to the company must be known before a
dollar value can be placed on it. From an internal prospective the more significant its
duties, the more the job is worth.

4- Safety and health

Information derived from job analysis is also valuable in identifying safety and
health considerations.

5- Employees and labor relation

Regardless of whether the firm is unionized, information obtained through job

analysis can often lead to more objective human resource decisions

6- Legal consideration

Having properly accomplished a job analysis is particularly for supporting the

legality of employment practices.

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7- Discovering un-assigned duties

Job analysis can help reveal un-assigned duties

Job analysis-Methods

Job analysis traditionally has been connected in a number of different ways. Also
firms differ in their needs and in the resources they have for collecting job analysis
information.

Method of collecting job

analysis Introduction

1- In HR specialist can (an HR specialist, job analyst, or consultant) a worker and

the workers supervisor usually work together in conducting the job analysis.

2- Job analysis data is usually collected from several employees from different
departments, using interviews and questionnaires. The data is then averaged, training
into account the departmental context of the employees to determine how much time
atypical employee spends on each of several specific tasks.

1- The interview

1- The three types of interviews managers use to collect job analysis data are

 Individual (to get the employees perspective on the jobs duties and responsibilities
 Group (when large numbers of employees perform the same job.)
 Supervisor (to get his / her perspective on the jobs duties and responsibilities.)

1- the pros of using interview are that it is simple, quick, and more
comprehensive because the interviewer activities they may never appear in written
form.

2- The following questions are some examples of the typical questions

 What is the job being performed

 In what activity do you participate etc.

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 3- The following are interview guidelines

 Job analysts and supervisor should identify the workers who know the job
best and would be objective.
 Follow a structured guide or checklist
 Review and verify the data

2- Questionnaire

This method is used to evaluate jobs in minimum time. In this technique a

detailed questionnaire is prepared and then distribute among employees who fill it and
return questionnaire to their supervisor.

Structured or unstructured questionnaires may be used to obtain job analysis

information. Questionnaires can be a large number of employees can be a quick,
efficient ways of gathering information from a large number of employees, but
developing and testing questionnaire can be expensive and time consuming.

3- Observation

1- Direct observations are useful when jibs consist of mainly observable physical
activity as opposed to mental activity.

2- Managers often use direct observation and interviewing together. Although

observation is most commonly used method of gathering information but it is not
possible to use the observation method alone.

4- Participant dairy/ legs

1- The employees record every activity he/she engage sin in a dairy or log along
with the amount of time to perform each activity to produce a complete picture of the
job.

2- Employees may toy to exaggerate some activities and underplay others.

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5- Checklists

The check list method can be used in large organizations that have a large
number of people assigned to the same or similar jobs. The staff groups prepares check
lists for various jobs. When check list is prepared it is sent to all employees are required
to check all listed tasks that perform and to indicate by check mark amount spent on
each task. This technique is costly and in practical in small organizations.

6- Combination of any two

Using combination of any two methods to organize job is best technique and
have better result.

39
 2.4 Job design

Meaning

Job design integrates work content (task function relationships) the rewards
(extrinsic and intrinsic) and the qualification required (skills , knowledge , abilities ) for
each job in a way that meets the needs of employees and the organizations.

Work contents Qualifications

 Tasks Job design  Skills

 Functions  Knowledge
 relationships  abilities

Rewards

 Intrinsic
 extrinsic

Work contents / job contents

Job is the collection of tasks and task is a duty or activity performed by a

person Job contents means the activities one has to do at his job.

Job contents are determined by,

 The specification of individual tasks.

 The specification of methods of performing each tasks
 The combination of tasks into specific jobs to be assigned to the individuals

Methods of job design

Each job four method required

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1) Work simplification

From work simplification we means „‟ to make the work more simple by splitting /
dividing it into small fragments‟‟ or make the work so simple so everyone can easily
understand it or develop a simple system keeping in view the polices and economy.

2- Job relation

Relation of job means movement of employee from one job to another job
periodically. In this rotation actual job does not change but employees are changed or
employees are rotated from one job to another job. Job relation is very important in
every organization because if one employee perform the same job whole day. Then he
became fed up from that vary job so in order to interest of the employees it is necessary
to change the work of one employee during his working hours. E.g. we take a most
simple example of sweeper hid duty is to clean all the office and furniture so in order to
keep the interest of sweeper it is necessary to make change during his working hour I.e.
he should be ordered for putting the files from one desk to another. It necessary
because it is natural perception that human beings like changes.

3- Job enlargement

Job enlargement means adding more or different tasks to the job or simple tasks
are added to the job that was simple in nature. In simple words we can say that job
enlargement means „‟ adding simple tasks to a specialized job „‟ this process is called „‟
horizontal job enlargement‟‟

4- Job enrichment

Job enrichment means deleting to employees certain function to supervision like to plan
, organize , lead , and control the work of his subordinates e.g. in university we take
example of one professor whose duty is to only deliver the lecture so in order to
increase efficiency and motivation if he is appointed as incharge of an „‟ academic of
the department „‟ so he will work with more interest. This is often called „‟ vertical job
loading‟‟ or „‟vertical job enrichment‟‟.

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Factor effecting job design

The factors that play a vital role in job design are……

1- Technology

The type of equipment or tools as well as particular work layout and methods,
used in producing goods or services tends to act as constraint. Technology may make
job more difficult or expensive, but not impossible

2- Economic factors

Although job design may be desirable, its cost must constantly be kept in mind
and weighed up against real benefits likely to be obtained.

3- Laws and Government regulation

Law relating to labor, environment or safety which is being violated needs to be

constantly watched.

4- Union pressure

Job design can be affected by the polices and strategies of the union. If not
taken into confidence, the union may perceive job design efforts as attempts by
management to squeeze out of at employee without wage increases or even as threat
to its position and power.

5- Employment potential

It would be purposeless to undertake and elaborate exercise, if the abilities and

motivation level of the workers haven‟t reached to the new standards sought to be
introduced

6- Management philosophy

Along with a organizational goals and strategies, management is in fact the real
key. Top management is committed to the concept of job design.

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Job analysis

The first function of personnel management is the employment / selection

function i.e. to select the qualified workers in adequate number. It is concerned with
recruitment the right people in the right place at the right time.

This function involves two steps………..

1. Determine of what kind or quality of personnel needed and

2. Determine of number of personnel required

The first duty of personnel department is to find out accurate information about
knowledge, skill, experience etc. that an individual should possess to perform a
particular job. It requires job analysis.

So we can say that job analysis is the process of collecting all facts relating to the
nature of specific job through scientific observation and study.

Definition 01

Job analysis is simple procedure with the help of which a personnel manager collects
data for job or collect information which is related to the job.

Definition 02

The process of obtaining information about the job in the organization.

Definition 03

Job analysis is the process of determination and reporting important information

regarding a specific job.

Definition 04

Knowledge about jobs ad their requirements are collected through the process of job analysis.

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Approaches to job design

There are three important approaches to job design……….

1. Engineering approach
2. Human approach
3. The job characteristics approach

1- Engineering

approach

Introduction

The most important single element in the engineering approaches , proposed

by FW Taylor and others , was the task idea.

Definition

The work of every workman is fully planned out by the management at least one
day in advance and each man receives in most cases complete written instruction,
describing in detail the task which he is to accomplish.

Principles of engineering approach

The principle offered by scientific management to job design can be summarized thus……..

1. Work should be scientifically studied. Taylor advocated fragmentation and

reutilization of work to reap the advantages of specialization
2. Worked should be arranged so that workers can be efficient
3. Employees selected for work should be matched to the demands of the job.
4. Employees should be trained to perform the job.
5. Monetary compensation should be used to reward successful performance of the job.

These principles to job design seem to be quite rational and appealing

because they point towards increased organizational performance.
Specialization and reutilization over a period of time result in job incumbents
becoming experts rather

44
 quickly, leading the high levels of output. Despite the assumed gains in
efficiency, behavioral scientists have found that some job incumbents dislike
specialized and routine job.

Problems with engineering approach

After listening to several complaints from employees about their highly specialized jobs,
Walker and Guest indicated the problems with job specialization thus…………

1- Repetition

Employees performed few tasks repeatedly. This quickly led the employees to
become vary board with the job. There was no challenge to the employees to learn
anything new or to improve the job.

2- Mechanical pacing

Assembly line workers were made to maintain a certain regular peace of work.
They could not take a break when they needed to , or simply divert their attention to
some other aspect of the job or another individual.

3- No end product

Employees found that they were not turning out any identifiable end product,
consequently, they had little pride and enthusiasm in their work.

4- Little social interaction

Employees complained that because the assembly line demanded constant,

there was very little opportunity to interact on a causal biases with other employees
and share their work experiences, benefits and sentiments.

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5- No out put

Employees also complained that they had little chance to choose the methods
by which they performed their jobs, the tool which they used , or the work procedures.
This of course , created little interest in the job because there was nothing which they
could improve or change.

Human relation approach.

The human relation approach recognized the need to design job in an

interesting manner. In the past two decades much work has been directed to
changing job so that job incumbents can satisfy their needs for growth, recognition and
responsibility.

Including Herzberg’s Approach research popularized the notion of enhancing

needs satisfaction through what is called job enrichment. One widely publicized
approach to job enrichment uses what is called job characteristics model and this has
been explained separately in the ensuing section.

According to Herzberg there are two types of factors

1. Motivators like achievements, recognition, work itself, responsibility,

advancement and growth and
2. Hygiene factors (which merely maintain the employee on the job and in the
organization) like working conditions, organizational policies, interpersonal
relations, pay and job security.

According to Herzberg the employee is dissatisfied with the job if maintenances

factors to the required degree are not introduced into the job. But the employee may
be satisfied even if the required maintenances factors are provided. Herzberg feels that
employees will be satisfied with his job and he will be more productive if motivators are
introduced into the job contents. As such, he asserts that the job designer has to
introduce hygiene factors adequately to reduce psychological needs of the
employees in designing jobs.

46
The job characteristics approach

The job characteristics theory of Hackman and Oldham states that employees
will work hard when they are rewarded for the work they do and when the work gives
them satisfaction. Hence they suggest that motivation, satisfaction and performance
should be integrated in the job design.

According to this approach any job can be described in terms of five core job
dimensions which are defined as follows………..

1- Task identity

The degree to which the job allows workers to complete whole tasks from start to
finish, rather than disjointed portions of the job.

2- Skill Variety

The degree to which the job requires that workers use a variety of different
activities, talents and skills in order to successfully complete the job requirement.

3- Task significance

The degree to which the job significantly impacts the lives of others both within
and outside the work place.

4- Autonomy

The degree to which the job allows workers freedom in planning and scheduling
and the methods used to complete the job.

5- Feedback

The degree to which the job itself provides workers with clear, direct and
understandable knowledge of their performance.

47
 All of the job dimensions impact workers psychologically. The first three
dimensions affect whether or not workers view their job meaningful. Autonomy
determines the extent of responsibility workers feel. Feedback allows for feelings of
satisfaction for a job well done by providing knowledge of results.

Motivating potential = Skill variety + task identity + task significance X autonomy X feed back Score

Jobs that are high on motivating potential must be high at least in one of the three
factors that lead to meaningful work and must be high in both autonomy and
feedback and vice versa. These three critical psychological states lead to the outcome
such as

 High internal work

motivation
 High growth satisfaction
 High quality work
performance
 High general job satisfaction
 High work effectiveness
Figure 13.1
 Low absenteeism and
turnover

Core job Critical Core job

dimension psychological dimension
states

Skill
Meaning
variety
dentity fullness
of work High external
Task significance
i work motivation
Task High quality work
nomy Responsibility for performance
Auto outcomes of the work High satisfaction
with work

back Knowledge of the actual High work

Feed
results of the work effectiveness
48
Employee’s
growth needs
strength
Low absenteeism
and turnover

49
 (Figure 13.1). The model says that internal rewards are obtained by an individual
when he learns that he personally has performed well on a task that he cares about.

Job characteristics model

Ironically the main feature of the job characteristics design method- its intrinsic
psychological motivation – may be its biggest drawback. Supervisors attempting to
apply these principles may discover that many employees these psychological sates
are unimportant. In fact research to date indicates that some employees respond
exceedingly well to jobs redesigned according to job characteristics dimensions, where
as for others, it has no discernible impact.

50
 2.5 Recruitment

Meaning

„‟Recruitment identify sources of potential employees, informing people of job

opening and attracting applicant‟s who have the requisite qualifications to perform the
jobs‟‟

Recruitment is the process of finding and attracting capable applicants for

employment. The process begins when new recruits are sought and ends when their
applications are submitted.

The process of seeking sources of job candidates.

Relationship between job analysis, recruitment and selection

The follow overview of the recruitment process shows link between recruitment,
job analysis and selection.

Human

Resource
Job
Planning
Job Analysis

Information
Affirmative
Opening Job Methods Satisfaction
Action pool of
Recruitment Of recruits
Plan recruitment
Identified
Managers

Specific Comments

requests of

Managers

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Factors affecting recruitment

It is said that the more applications received the better the recruiter‟s chances of
finding an individual best suited to the job requirements. But there are some factors that
can limit recruiting outcomes. Some of these factors are here under.

1- Organizational image

We need noted that positive candidate may not be interested in pursuing job
opportunities in the particular organization. The image of the organization, therefore
can be a potential constraint, a poor image may limit its attraction to applicants.

2- Job attractiveness

If the position to be filled is an unattractive job, recruiting a large and qualified

pool of applicants will be difficult. Moreover, jobs viewed as boring, hazardous, anxiety
creating, low paying or lacking in promotion potential seldom attract a qualified pool
of applicants.

3- Internal organizational polices

Internal organization polices, such as „‟ promote from within wherever possible‟‟

may give priority to individuals inside the organization. Such polices, when followed,
typically ensure that all positions, other than the lowest-level entry position, will be filled
from within the rank although this looks good once one is hired, it may reduce the
number of applications.

4- Government influence

The government influence in the recruiting process should not be overlooked. An

airline that wants to hire only attractive females for flight attendant positions will find
itself breaking the low if comparably qualified male candidates are rejected on the
biases of gender- or female candidates are rejected on the basis of age.

52
5- Recruiting costs

The last constraint, but certainly not lowest in priority, canters recruiting costs.
Recruiting efforts are expensive- costing as much as $10500 per position being filled.
Sometime budget restrictions put a time limit on searches, accordingly when an
organization, like minimizing its recruiting travel budget by first interviewing employees
using conference calls or through video conferencing.

Methods of recruitment

Following are two main sources of recruitment along with methods used therein

1. The internal search

2. The external search

1- The internal search

Many large organizations attempt to develop their own low-level employees for
higher positions, these promotions can occur through an internal search of current
employees who have bid for the current job been identified through one of the
following two main methods.

a) Employee referrals and recommendations

A recommendation from a current employee regarding a job applicant.

Employee referrals are an excellent means of locating potential employees for hard-to-
fill positions.

2- Internal job postings

By announcing job within organization by HR department through e-mails putting

on by issuing circulars etc...

Advantages of internal search

1. Provides greater motivation for good performance

2. Provides greater opportunities for present employees
3. Provides better opportunity to assess abilities

53
 4. Improves morale and organizational loyalty
5. Enable employees to perform the new job with little lost time.
6. It is good for public relation
7. It encourages good individuals who are ambitious.
8. It is less costly then going outside to recruit

Disadvantages of external search

1. Creates a narrowing thinking and stale ideas

2. Creates pressures to complete
3. Creates homogeneous workforce
4. Chances to miss well outside talent require strong management development
programs specially to train for technology.

External recruitment methods

Recruitment methods are the specific means through which potential

employees are attracted to the firm

a) Advertising

A way of communicating employment needs within the firm to public through

media such as radio, newspaper, television, industry publications, and the internet.

Sometimes organizations can perform the recruitment function through blind

advertisements in blind advertisement no identification about the company is provided
to applicants. Companies can use blind advertisement for many reasons e.g.

 Company wants to keep the recruitment in low profile so that lesser number of
applicants should apply in order to discourage the irrelevant people
 Due to bad reputation or image of the organization
 Advertisement in made just for the purpose of test marketing for example just to
have knowledge about the supply of applicants in labor market etc.

54
b) Employment agencies

An organization that helps firms recruits employees and, at the same time, aids
individuals in their attempt to locate job. There are two types of employment agencies
I,e.

1. Public employment
2. Private employment

c) Recruiters

The most common use of recruiters is with technical and vocational schools,
community college, colleges, and universities.

d) Special Events

It is a recruiting method that involves an effort on the part of a single employer or

group of employers to attract a large number of applicants for interview.

e) Internships

A special form of recruiting that involves placing student in a temporary job.

There is no obligation on the part of the company to permanently hire the student and
no obligation on the part of the student to accept a permanent position with the firm.
Hiring college student to work as student interns is typically viewed as training activity
rather then as a recruiting activity. However, organizations that sponsor internship
programs have found that such programs represent an excellent means of recruiting
outstanding employees.

f) Executive search firms

Executive search firms sometimes called HEAD HUNTERS are specialized from of
private employment agencies that place top level executives and experienced
professionals. There the organizations that seek the most- qualified executive‟s available
for a specific position and do generally retained by the company need a specific type
of individual.

55
g) Professional associates

Associations in many business professions such as finance, marketing,

informational technology, and human resources provide recruitment and placement
services for their members. Professional associations and trade organizations provide a
valuable service in bringing together professional and professional job opening. Most
professional organizations have newsletters, annual meetings and trade publications
that adverse job opening. The annual meetings of these organizations are good
occasion for professionals to learn about available job openings and for employers to
interview potential applicants.

h) Unsolicited walk-in Applicants

If an organization has the reputation of being a good place to work, it may be

able to attract good prospective employees without extensive recruitment efforts.

i) Open houses

Firms pair potential hires and managers in a warm, casual environment that
encourages on-the-spot job offers

j) Event recruiting

Attend the events that the people you are seeking go to.

k) Virtual job fairs

Individuals meet recruiters face to face in interviews conducted over special

computers that have lenses that transmit head-and shoulder image of both parties

l) Cyber recruiting

Organizations can also use websites and internet sources to recruit people
application submission test and interview and other recruitment and selection activities
can be performed online.

56
Advantages of external recruitment

1. Provide new ideas and new insights.

2. Provides greater diversity and help achieve EEO goals by making affirmative action easy
3. Provide opportunities to handle rapid growth if the organization
4. Opportunities to get people with up-to-date knowledge education and training

Disadvantages of external recruiting

1. It is more expensive and time consuming

2. Destroy incentives of present employees to strive for promotion
3. More chances to commit hiring mistakes due to difficult applicants assessment
that will lead to wastage of resources

E) Alternatives to recruitment

When an organization decides to add personnel to its staff it makes a significant

financial investment. Recruitment and selection costs are high, especially for
professionals, technical and managerial employees. Therefore before an organization
decides to recruit new employees, it ought to consider the feasibility of other
alternatives.

i) Outsourcing

Outsourcing is the process of transferring responsibility for an area of services and

its objectives to an external services provider instead of internal employee.

ii) Contingent workers

It is also known as part timers, temporaries, and independent contractors,

comprise the faster- growing segment of our economy

57
iii) Employee leasing

Using this approach a firm terminates some or most of its employees. A leasing
company then hires them, usually at the same salary, and leases them back to the
former employer, who becomes the Clint.

iv) Overtime

Perhaps the most commonly used method of meeting short-term fluctuations in

work volume is through the use of overtime.

58
 2.6 Selection

Selection

Selection is the process of choosing from a group of applicant those individuals

best suited for a particular position. Most managers recognize that employee selection
is one of their most difficult and most important business decisions. This process involves
making judgment-not about the applicant, but about fit between the applicant and
the job by considering knowledge, skills and abilities and other characteristics required
to perform the job selection procedures are not carried out through standard pattern
and steps in this. Process can vary from organization to organization some steps
performed and considered important by one organization can be skipped by other
organization.

Selection criteria

Mostly the selection of applicant depends upon the following factors or criterions

1. Education
2. Competencies
3. Experience
4. Skills and abilities
5. Personal characteristics

Validation of selection criteria

We will emphasize these elements as they relate to employment test, but

they are relevant to any validation of selection criteria

1- Relaibility

A selection device‟s consistency of measurement.

2- Validity

The proven relationship of a selection device to relevant criterion

59
3- Content validity

The degree to which test content, as a sample, represents a;; situations that
could have been include, such as a typing test for clerk typist.

4- Construct validity

The degree to which a particular trait relates to successful job performance, as in IQ

test.

5- Criterion- related validity

The degree to which a particular selection device accurately predicts the

important elements of work behavior, as in the relationship between a test score and
job performance.

6- Predictive validity

Validating tastes by using prospective applicants as the study group.

7- Concurrent validity

Validating tests by using current employees as the study group

8- Cut score

A scoring point below which applicants are rejected.

Selection process

The selection process typically begins with the preliminary interview; next,
candidates complete the application for employment. They progress through a series of
selection tests, the employment interview and reference and background checks. The
successful applicants receive a company physical examination and are employed if
the results are satisfactory. Several external and internal factors impact the selection
process, and the manager must take them into account in making selection decisions.
Typically selection process consists of the following

60
steps but it is not necessary that all organization go through all these steps as per
requirement of the organization some steps can be skipped while performing the
selection process.

1. Initial screening
2. Application blank Final selection decision
3. Pre-employment testing
 General intelligence tests
Medical exam / drug tests
 Attitude tests
 Personality and interest test Conditional job offer
 Achievement test
 Honesty test
Background checks

4. Interview
Interviews
 Structured interview

 Unstructured interview Pre-employment testing

 Mixed interview

5. Background checks Application blank

6. Conditional job offer

Initial screening
7. Medical exam / drug tests

8. Final selection decision

1- Initial screening

The selection process often begins with an initial screening of applicants to

remove individuals who obviously do not meet the position requirements. At this stage,
a few straightforward questions are asked. An applicant may obviously ne unqualified
to fill the advertised position, but well qualified to work in other open positions. The
purpose of screening so to decrease the number of applicants being considered for
selection

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Sources utilize in the screening effort

Personal resume presented with the job applications is considered as source of

information that can be sued for initial screening process. It mainly includes information
in the following areas.

 Employment and education history

 Evaluation of character
 Evaluation of job performance

Screening interviews

Screening interviews are used to,

 To verify information provided on resume or application blank

 They are usually vary short ( approximately 30 minutes or so)

Advantages of successful screening

If the screening efforts are successful those information do not meet minimum,
required qualifications will not move to the next stage in the selection process.
Companies utilizing expensive selection procedures put more efforts= in screening to
reduce costs.

2- Application blanks / review of applications

Application blank is a formal blank record of an individual‟s application for

employment. The next step in the selection process may involve having the prospective
employee complete an application for employment. The specific type of information
may vary from firm to firm and even by job type within an organization. However, the
application forms must reflect not only the firm‟s informational needs but also EEO
requirements. Application forms are good way to quickly collect verifiable and fairly
accurate historical data from the candidate

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3- Types of employment tests

Individuals differ in characteristics related to job performance. These differences

which are measurable, relate to cognitive abilities, psychomotor abilities, job
knowledge, work samples, vocational interests, and personality. Various tests measure
these differences.

a) Cognitive aptitude tests

It measures an individuals ability to learn, as well as to perform a job-related

abilities may be classified as verbal, numerical, perpetual speed, spatial, and
reasoning.

b) Psychomotor abilities

This type of test is use to measure strength, coordination, and dexterity. It is

feasible to measure many abilities that are involved in many routine production job and
some office jobs.

c) Job knowledge tests

This sort of test is designed to measure a candidate‟s knowledge of the duties of

the position for which he or she is applying.

d) Work-sample tests (Simulations)

It identifies the task or set of tasks that are representative to of the job. The
evidences concerning these tests, to date, is that they produce high predictive validity,
reduce impact, and are more acceptable to applicants.

e) Vocational interest’s tests

It indicates the occupation in which a person is most interested and is most likely
to receive satisfaction.

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f) Personality tests

It is a selection tools, personality tests have not been as useful as other types of
tests. They are often characterized by low reliability and low validity. Because some
personality tests emphasize subjective interpretation, the services of a qualified
psychologist are required.

g) Drug and Alcohol testing

Basic purpose of drug testing programs contends that it is necessary to ensure

workplace safety, security and productivity

h) Genetic teasing

As genetic research progress, confirmed link between specific gene mutations

and diseases are emerging. Genetic testing can now determine whether a person
carries the gene mutation for certain diseases including hart disease, colon cancer,
and hunting‟s disease.

i) Honest test

For many years, another means used to verify background information has been
the polygraph, or lie detector test. One purpose of the polygraph was to confirm or
refute the information contained in the application blank. Special test have been
constructed to measure the orientation of the individual toward the issue of the honesty
and personal integrity. Honesty test is the most frequently used psychological tests in
industry. These tests contain questions regarding such situations as whether a person
who has taken company merchandize should be trusted in another job that involves
handling company money. An individual‟s response to the test statements indicates the
individual‟s attitudes toward the theft, embezzlement, and dishonest practices.
Extensive research has shown that some of these instruments not only produce reliable
information that validly predicts dishonest behavior, but that they also are free from
biases of age, sex, and race. These honesty tests represent a valuable tool for choosing
employees who will occupy positions that involve handling company money.

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j) Interest testing

The interest is being increasingly used to test various skills required by applicants.

4- Job interview

Interview is a goal oriented conversation in which the interviewer and applicant

exchange information. The employment interview is especially significant because the
applicants who reach this stage are considered to be the most promising candidates

Types of interview

Interview may be classified in two types by the degree to which they are structured.

A) The unstructured interview (Nondirective) interview

Unstructured interview is an interview where probing, open-ended questions are

asked. This type of interview is comprehensive, and the interviewer is encourages the
applicant to do much of the talking.

B) The structured (Directed or patterned) interview

An interview consisting of a series of job related questions that are asked consistently
of each applicant for a particular job is known as structured interview. A structured
interview typically contains four types of questions.

 Situational questions

Pose a hypothetical job situation to determine what the applicant would do in that situation.

 Job knowledge question

Probe the applicant‟s job-related knowledge

 Job- sample simulation questions

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Involve situations in which an applicant may be actually required to perform a sample
task from the job

 Worker requirements questions

Seek to determine the applicant‟s willingness to conform to the requirements of the job.

c) Behavior description interviewing

A structured interview that uses questions designed to probe the candidate‟s

past behavior in specific situations. It avoids making judgments about applicants
personalities and avoids hypothetical and self-evaluative questions. Benchmark
answers derived from behaviors of successful employees are prepared for use in rating
applicant responses. Questions asked in behavior description interview are legally safe
because they are job related.

5- Methods of interviewing

Interview may be conducted in several ways.

A) One-on-one interview

In a typical employment interview, the applicant meets one-on-one with an

interviewer. As the interview may be a highly emotional occasion for the applicant,
meeting alone with the interviewer is often less threatening.

B) Group interview

Several applicants interact in the presence of one or more company representatives

C) Board interview

One candidate is interviewed by several representative of the firm

D) Stress interview

Intentionally creates anxiety to determine how an applicant will react to stress on the job.

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6- Realistic interview

RJP conveys job information to the applicant in an unbiased manner, including

both positive and negative factors.

7- How to avoid common interviewing mistakes

a) Snap judgment

This is where the interviewer jumps to conclusion about the candidate during the
first few minutes of the interview. Using a structured interview is one way to help avoid
this, as well as properly training the interviewers

b) Negative emphasis

When an interviewer has received information about the candidate, through

references or other sources, he or she will almost always view the candidate negatively.
The best way to avoid this is to keep references or other information from interviewer. if
possible, have different people do the reference checks and the interviews and not
share the information until afterwards.

c) Poor knowledge of the job.

When interviewer does not have a good understanding of the job requirements,
they do not make good selections of candidates. All interviewers should clearly
understand the jobs and know what is needed for success in those jobs.

d) Pressure to hire

Anytime an interviewer is told that he or she must hire a certain number of

people within a short time frame, poor selection decisions may be made. This type of
pressure should be avoided whenever possible.

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e) Candidate order

(Contrast) error. When an adequate candidate is preceded by either an

outstanding, or a poor candidate, by contrast he or she looks either less satisfactory or
much better. This can be countered through interviewer training, allowing time
between interviews and structured rating forms.

f) Influence of non-verbal behavior

Candidate who exhibit stronger non-verbal behavior such as eye contact and
energy level are perceived as stronger by the interviewers. This can be minimized
through interviewer training and structured interviews.

Guideline for conducting interview

 Plan the interview

 Establish rapport
 Ask questions

 Close the interview

 Review the interview

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 Part III

Training and development of human resource

3.1 Orientation

 Definition
 Objectives
 Essential
 Outcomes

3.2 Training

 Introduction
 Training
 Importance of training

3.3 Training methods

 On-the- job
 Vestibule
 classroom

3.4 Training and learning

 Definition

 What is learning?
 Theories of learning

4.5 Evaluating training and development effectiveness

4.6 placements

4.7 development

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 3.1 Orientation

Introduction

Activities that introduce new employees to the organization and their work unit.

Definition

„‟ Orientation is the guided adjustment of employee to the organization and work

environment‟‟

Who is responsible for orientation?

Two people are responsible for orientation.

 New employees supervisor

 The people in HRM

Why orientation?

Orientation is important because it helps an employee to understand „‟

organization culture‟‟

Organization culture

The system of sharing meaning with in organization that determines how employees act

An employee who has been properly socialized to the organization‟s culture knows
what acceptable behavior is and what is not.

Objectives of orientation

The objectives of orientation are multifaceted.

1. Create favorable attitude of new employee towards company, its polices

and its personnel.
2. It creates a feeling of belonging and acceptance.
3. It can minimize rules violations discharge, grievances and misunderstandings.

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How it is responsible for orientation

After an employee is hired both the personnel department and the

supervisor are responsible for orientation.

The role of supervisor is to introduce new employee with old ones and with work
environment. He should tell him / her about nature of duties and introduce with him and
co-workers.

The personnel department of orientation program and its execution.

Essential contents of orientation program.

An orientation program should consist of following information and actions.

1. Company history, polices, practices

2. Company products
3. Company plants and faculties
4. Organizational structure
5. Employee responsibilities to company
6. Pay treatment
7. Rules of conduct
8. Tour of department
9. Work schedule
10. Collective bargaining agreement
11. Benefits plans- like insurance
12. Safety programs
13. Training opportunities
14. Promotion policy
15. Introduction to fellow employees
16. Establishment of feeling of belonging, acceptance
17. Employee appraisal system
18. Work assignment.

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Out comes or orientation programs

A successful orientation program in...

1. Removal of anxiousity of new employee

2. Removal of their hesitation
3. Making new employees to discuss problems with their supervisor
4. Making new employee friendly, by giving them sense of belonging.

3.2 Training

Introduction

To operate organizations, large or small requires staffing with competent

personnel. A person will be competent if he or she is well trained. Now let‟s see what is
training.

Definition of Training

„‟Training is the organized procedure by which people lean knowledge and or skills for a
definite purpose‟‟

The objective of training is to achieve a change in the behavior of those trained.

Training is different from education. Education is broader in scope. Its purpose is to

develop the individual. Commonly education is considered to be formal education is a
school, college or university whereas training is vocationally oriented end occurs in a
work organization.

Importance of training

Training is vital and necessary activity in all organizations. It plays a large part in
determining the effectiveness and efficiency of the organization. Lets see benefits of
training for an organization

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1- Reduce training time to reach acceptable performance

By having qualified instructors and carefully controlled learning situation,

management can be able to shortened learning periods of new employees.

2- Improve performance on present job

Training applies not only to new employees but experienced people as well as
the performance of present employees can be improved by giving them training.

3- =Attitude formation

A common objective of company training programs is to molding of employee

attitudes to achieve support for company activities and to obtain better corporation
and greater loyalty.

4- Aid in solving operational problems

Operational problems in an organization can be reduce turnover, absenteeism,

accidents, grievance rates, low morale etc. by training in of the both supervisors and
hourly paid employees can help in solving these operational problems.

5- Fill manpower needs

If an organization found difficult to recruit skilled people, then to solve this

problems in long run, it should give training to its existing employees in order to make
them more skilled. 6- Benefits to employees themselves

Training is not only beneficial for organization but also for employees themselves.
Because training increase their knowledge and skill which in turn increase the market
value of employees.

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 3.3 Training methods

Training methods

There are many methods of training which method will be used it depends on
such factors , cost, time available, number of persons to be trained, depth of
knowledge required, background of the trainees and many other factors.

Methods of training

1) On the job 2) Vestibule 3) Classroom

1- On the job

On the job training means training employees while performing their jobs. It is
normally done by the supervisor

It is the duty of supervisor to construct an on- the- job training programs. He can trained
people through himself or through an other experienced employees. The instructor of
the training should be well aware of that job related knowledge and skills. The ads and
technologies that can be used by an instructor during on the job training are
procedure charts, pictures, manuals, sample problems, demonstrations, oral and written
explanations and tape recordings.

Benefits of this method

1. Give practical experience of actual work conditions

2. Useful for unskilled and semiskilled people
3. Less costly
4. Useful in giving training of technical nature thing.

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Drawbacks

1. You can give training to only few employee at a time

2. Untrained employee can damage costly machinery

2- Vestibule training

Vestibule training is the term used to destitute training in a class room for
semiskilled production and clinical jobs.

This method is appropriate when a large number of employees must be trained at the
same time for the same kind of work. When this method is used the management
should be well qualified. In this method emphasis tends to be upon learning rather then
production. In this method the learning condition should be controlled carefully.

3- Class room method

Class room instruction is useful to learn philosophy, concepts, attributes, theories

and problem solving abilities.

There are many classroom instruction techniques. These are…

a) Lecture

Lecture is a formal organized talk by the instructor a group of students. The

lecturer is presumed to possess a considerable depth of knowledge of the subject at
hand.

The main benefit of this technique is that it can be used for very large groups and thus
the cost per trainee is low.

Limitation of this method

 Lecturers are passive

 It ignores principle of learning by doing
 It is one way communication

 There is no feed back from audience

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  It may be above or below the audience level of training

These lectures must be used with other techniques in order to gain fruity results.

b) Conference

A conference is small group meeting, conducted according to an organized

plan in which the leader seeks to develop knowledge and understanding by obtaining
a considerable amount of oral participation from the trainees or students

It overcomes the limitations of lecture such as

1. Lectures are optimistic because they play active role

2. It provides feed back
3. It seeks contribution from students

There are three basic kinds of conferences

1. The directed conference

2. The consultative conference
3. The problem solving conference

c) Case study

In this method a problem is assigned to students by instructor. The student study

this problem and give suggestion to solve problem on the basis of their theatrical
knowledge. Infect it is practical implementation of theoretical knowledge.

The case study method of instruction provides for learning by doing. This method is
useful for developing analytical thinking and problem-solving ability.

d) Role playing

In the role playing two or more trainees are assigned parts to play before the rest
of the class. There is no lines to memorize and no rehearsals. The role players are
provided with either written or oral descriptions of a situation and the role they are to
play.

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This technique is widely used in „‟‟human relation‟‟‟ and „‟‟leadership‟‟‟ techniques.
It gives opportunity to a trainee to perform just like as he is actually facing a particular
situation

This technique should be used with other techniques.

e) Programmed instruction

Programmed instruction is also called teaching machine. The key features of this
method are..

1. Students learn at their own pace

2. Instructions are not a key part of learning
3. The material to be learned is broken down into small units or stages.
4. Each step logically builds upon those that have preceded it
5. The student is given immediate knowledge of result for each answer given.
6. There is active participation by the learner at each step in the program

f) Computer- assisted instruction

Instruction through computerized presentation by the use of studies. In this

method it is easy for learner to gain knowledge.

It is costly method but it helps the conveying knowledge easily.

g) Learner controlled instruction

Learner controlled instruction (LCI) is a relatively new method of training in which

the trainees are given considerable choice in determining for themselves the pace at
which they learn, the sequencing of the learning steps, the methods used in the
process, and the evaluation of their own learning. A large variety of learning methods
are media are made available to the trainees. These can include books, films, etc.

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h) Simulation and games

A simulator is any kind of equipment that duplicates as nearly as possible the

actual condition encountered on the job. Like aircraft pilots training is done in flight
simulators

Games especially business games is very popular source of learning. In business games
player feed his or her decision data and see results of his or her decision.

3.4 Training and learning

Definition of learning / meaning

„‟Any relatively permanent change in behavior that occurs as a result of experience‟‟‟

What is learning?

Our organization has several components that deserve clarification.

1. First learning involves change. Change may be good or bad from an

organizational point of view
2. Second the must be relatively permanent
3. Third our definition is concerned with behavior, learning takes place when
there is a change in action
4. Finally experience is necessary for learning, experience may be acquired
directly through observation or practice, or it may be acquired indirectly as
through reading.

Learning / experience curve

Experience and learning goes parrell. The more we have experience the more
we have learning. Experience may be acquired through practice or through
observation and reading. When experience brings in permanent change in behavior
then we say learning has taken place
.

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Experienc
Learning
e And

Learning
Experience

O
Time

Theories of learning

Three theories have been offered to explain the process by which we acquire
pattern of behavior.

1. Classical conditioning
2. Operant conditioning
3. Social learning

1- Classical conditioning

A type of conditioning in which a individual responds to some stimulus that would

not ordinarily produced such as response.

2- Operant conditioning

A type of conditioning in which desired voluntary behavior leads to a reward or

prevents a punishment.

3- Social learning

„‟‟Individual can also learn by observing what happens to other people and just being
told about some thing, as well as by direct experience‟‟‟

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Example

We learned comes from watching modules – parents, teachers, peers, television,

performers, and bosses. We can learn through observation and direct experience has
been called social learning theory.

2.5 Evaluation of training efforts

If management invests in training programs for employees, it understandably

expects to see some tangible benefits derived there from.

When training director approaches top management can ask about the effectiveness
of training in organization operation.

We can measure the training benefits or we can evaluate training effort using
following approaches.

First approach

One approach is to pass on questionnaire to the trainees at the completion

of the program to obtain their opinions as to its worth.

Second approach

Second approach is to measure the knowledge / skill before training and again
measure after training, then compare the results.

Third approach

A better way of measuring the worth of training is to use various indexes of

work performance and compare these indexes before training and after training.

Fourth approach

This approach most refined method for evaluating training. This approach
measure performance before and after training for both a control group and
experimental group.

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This procedure can be accomplished by selecting two groups of employees that are
approximately equal in education, experience skills etc. subject one group to the
training program and give no training to the other (control) group and compare results
or after training use some measures of comparison with before training.

3.5 Placement

Definition

Placement is the assignment or reassignment of an employee to new job.

Types of placement

There are three types of placement

1- Promotion

Assumption occurs when an employee is moved from a job to another position

that is higher in pay, responsibility and / or organizational level. Generally, it is given as a
recognition of a person‟s past performance and future promise.

a) Merit-based promotion

Merit-based promotions occur when an employee is promotes because of

superior performance in the current job.

b) Seniority-based promotion

In this case senior employee gets the promotion „‟senior‟‟ in this case means
the employee who has the largest length of service with the employer.

2- Transfers

Transfer occurs when an employee is moved from one job to another position
that is relatively equal in pay, responsibility, and / or organizational level.

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3- Demotions

Demotions occur when an employee is moved from one job to another position
that is lower in pay, responsibility, and / or organizational level.

3.6 Separations

Definition

A separation is a decision that the individual and organization should part. It may be
initiated by the employer or the employee. Additionally it may be motivated by
disciplinary, economic, business or personal reasons.

Forms of
separation

There are four forms of separation

1- Temporary leaves of absence

Employees sometimes need to leave their jobs temporarily. The reasons may
include medical, family, educational , recreational and other motives

2- Attrition

Attrition is the normal separation of people from an organization as a result of

resignation, retirement or death. It is initiated by the individual worker not by the
company.

3- Lay offs

Layoffs entail the separation of employees from the organization for economic or
business reasons. It occurs because of restructuring such as downsizing or mergers ands
acquisitions.‟ Golden shake hand‟‟ is example of layoffs.

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4- Termination

Termination is a board term that an employees permanent separation from the

organization for any reason. Usually this term implies that the person was forced as a
form of discipline.

3.7 Development

Employee development

Employee development is more future oriented and more concerned with

employee education. By education we mean that employee development activities
attempt to instill sound reasoning process I.e. to enhance once ability to understand
and interpret knowledge.

 Employee development helps employee to „‟ think and understand‟‟

 Employee development is predominantly an education process rather then a

training process.

Management development

Management development is that part of employee development in which

potential management personnel gets training in specific skills related to managing I.e.
loaning, organizing, leading, controlling and decision making

Management development methods

There are three main methods

1. Lecture, courses and seminars

2. Simulations
3. Outdoor training

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1- Lecture, courses and seminars

It is a traditional method of management development which revolves around

formal lecture courses and seminars. These help individuals acquire knowledge and
develop their conceptual and analytical abilities.

2- out door training

The primary focus of such training is to teach trainees the importance of working
together of jelling as a team. The purpose of such training is to see how employees
react to the difficulties that nature presents to them.

 Do they face these dangers alone?

 Do they „‟ freak‟‟?
 Are they controlled and successful in achieving their goals?

Development techniques

There are three main employee development techniques

1. Job rotation
2. Assist to position
3. Committee assignment

1- Job rotation

Moving employees horizontally or vertically to expand their skills, knowledge, or

abilities. Job rotation is also a tool to remove bore don attacked with a job and
broaden an individuals exposure to company‟s operations.

2- Assessment to positions

Employees with demonstrated potential sometimes work under a seasoned and

successful manager often in different areas of the organization working as staff
assessments these individuals perform many duties under the watchful eye of a
supportive coach. In doing

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so, these employees‟ experiences a wide verity of management activities and are
groomed for assuming the duties of the next higher level.

3- Committee assignment

Committee assignments can allow the employee to share in decision making, to

learn by watching others and to investigate specific organization problems. Temporary
committees often act as a taskforce to alternative solutions and recommend a
solution. These temporary assignments can be both interesting and rewarding to the
employee‟s growth.

Organizational development vs. organizational

change Organizational development (O.D)

„‟ The part of HRM that address system wide change in the organization‟‟ in

other words „‟OD facilities long-term organization-wide

change‟‟

Its focus is to constructively change attitudes and values among organizational

members so that they can more rapidly adapt to and be affective in achieving the
new directions of the organization.

Organization change

Organization change means change in business strategic

direction Change usually affects four areas

1. The organization‟s system

2. Its technologies
3. Its processes
4. Its people

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Organizational development vs. organizational change

Organizational change constructively change business‟s strategic direction and

organization development is used as instrument to bring about the change how this
happen

The effects of change become organizational culture issues. Accordingly, OD efforts

help ensure that all organization members support the new culture and assist in bringing
the new culture to fruition

3.8 Career planning and development

Meaning and

importance Career

definition

A career is a lifelong sequence of jobs integrated with the attitudes and motives
of the person as he or she engages in these work roles

Career planning

Career planning is a subset of career development. „‟it is the personal process of

planning. This include evaluating one‟s abilities and interests examining career
opportunities setting career goals and planning appropriate developmental activities.‟‟

Career

development

Definition

From employment prospective/ individual

„‟ career development is the planning of one‟s career and the implementation of

career plans by means of education, training, jobs search and acquisition and
work experience‟‟

From organizational prospective

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 „‟career development is the process of guiding the placement, movement and
growth of employees through assessment, planned training activities and planned job
assignment‟‟

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Importance of career planning and development

Career planning and development process is important because

 It helps in meeting individuals career aspiration

 It helps in meeting organizations objectives and goals.

 It provides opportunity for companion of ones abilities with job requirements.
 It helps in putting right people at right job.
 Helps in employee growth and development.

The value of effective career development

Effective career development has value for both

 Value for Organizations

 Value for Individuals

1- Value for organization

Effective career development is valuable for organization because,

1- Needed talent will be available

Career development efforts are consistent with and a natural extension of

strategic and employment planning. Changing staff requirement.

2) The organization ability to attract and retain talented employee

Outstanding employees will always be scare and competition to secure their

services considerable.

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3- Minorities and women have comparable opportunities for growth and development

EEO legislation and affirmative- action programs have demanded that minority
groups and women receive opportunities for growth and development that will
prepare them for greater responsibilities within the organization

4- Reduced employee frustration

Although the workforce educational level has risen so too have occupational
aspiration. However as periods of economic stage nations increase organizations efforts
to reduce costs they also reduce opportunities.

5- Organizational good will

If employees think their employing organizations care about their long term well-
being, they tend to response in kind by projecting positive images of the organization.

6- Enhance cultural diversity

The workforce in next decade will continue to reflect a more varies combination
of race, nationality, gender and value in the organization

2- Value for the individuals

Career development is valuable for an individual employee because it adds to

his / her value by enhancing its skills, knowledge and capacity.

Career development stages

Many authors have attempted to map out the ideal stages of a successful
career and in this section we loosely use the five stages outlined by Greenhouse and
Callahan (1994).
Few careers follow such an idealized pattern, and even historically such a pattern did
not apply for all employees. However, the stage approach offers a useful framework for
understanding

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Career choices

The best career choice offers the best match between what you want and what
you need. A good career match then let us develop a positive self-concept and to do
word that we think is
important. Let‟s look at some of the exiting
research that can help us to discover which careers may provide the best match for
our skills.

1. Holland vocational Preferences:

One of the most widely used approaches to guide career choices is the
Holland Vocational Preferences model. This theory consists of three major components.

First: Holland found that people have varying occupational preferenc3es; we don not
all like to do the same things.

Second: his research demonstrates that if you do a job you think is important,
you will be a more productive employee.

Third: you will have more in common with people who have similar interest
patterns and less in common with those who don‟t.

This model identifies six vocational themes.

1. Realistic
2. Investigative
3. Artistic
4. Social
5. Enterprising
6. Convential

An individual‟s occupational personality is expressed as some combination of high

and low scores on these six themes. High scores indicates that you enjoy those kinds of
activities

2. The Schein Anchors:

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 Edgar Schein has identified following personal value clusters/anchors.

1. Technical-functional competence
2. Managerial competence
3. Security-stability
4. Creativity and
5. Autonomy-independence

Most people have two or three value clusters that are important to them. If an
organization satisfies two out of three that is considered a stable match.

Jung and the Mayers-Briggs Typologies:

It is more widely used method and also called MBIT (Myers-briggs type Indicator). The
MBIT uses four dimensions of personality to identify 16 different personality types based
on responses to an approximately 100-item questionnaire.

Four dimensions are;

1. Extroversion vs. Introversion (EI)

2. Sensing vs. Intuitive (SN)
3. Thinking vs. feeling (TF)
4. Judging vs. Perceiving (JP)

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Let‟s develop 16 personality types from above four dimensions in following chart.

Sensing type (S) Intuitive type (N)

Thinking (T) Feeling (F) Feeling (F) Thinking (T)

Judging

ISTJ ISFJ INFJ INTJ

(J)
Introverts (I)

Perceivin Perceivin

ISTP ISFP INFP INTP

g (P)

ESTP ESFP ENFP ENTP

g (P)
Extraverts (E)

Judging

ESTJ ESFJ ENFJ ENTJ

(J)

Career planning and pathing:

Career Planning is the process by which one selects career goals and the path
to those goals. Career planning is important and essential to HR department and
individuals because;

1. It aligns strategy and internal staffing requirements

2. It develops promotable employees
3. It facilitates international placement
4. It assists with work fore diversity
5. It lowers turnover
6. It taps employee potential
7. It reduces hoarding
8. It satisfies employee needs
9. It assists affirmative action plans.

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Career Path

A career path is the sequence pattern of jobs that forms one‟s career.

Career path >Linotype operator

>Teletype operator

>Word processor Job ladder

operator

> Clerk-Typist

Suggestions for more effective organizational career development

Organizational career development can be effective by;

1. Management support
2. Feedback

1. Management support:

The HR department‟s efforts to encourage career development have little

impact unless they are supported by managers. Commitment by top management is
crucial. Without it middle-level managers may show much less support of their
subordinate‟s careers.

2. Feedback:

Providing feedback about their career development to employees is important, especially;

 To assure bypassed employees that they are still valued and will be
considered for future promotions if they are qualified
 To explain why they are not selected

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  To indicate what specific career development actions they should undertake.

Suggestions for improving an individual’s career development

If we identify a career as the property of the individual, then clearly the responsibility
for managing this rests on the individual, who should identify career goals, adopt
strategies to support them and devise plans to achieve the goal.

The list below describes the type of strategies, identified from a review of the literature
by Gould and Penley (1984), and they relate to career improvement/promotion within
the organization.

• Creating opportunities.

This involves building the appropriate skills and experiences that are needed for a
career in the organization. Developing those skills that are seen as critical to the
individual‟s supervisor and department are most useful, as is exercising leadership in an
area where none exists at present.

• Extended work involvement.

This necessitates working long hours, both at the workplace and at home, and
may also involve a preoccupation with work issues at all times.

• Self-nomination/self-presentation.

Individuals who pursue this strategy will communicate the desire for increased
responsibility to their managers. They will also make known their successes, and build an
image of themselves as someone who achieves things.

• Seeking career guidance.

This involves seeking out a more experienced person, either within the
organization or without, and looking for guidance or sponsorship. The use of mentor
relationships would come into this category.

94
• Networking.

Networking involves developing contacts both inside and outside the

organization to gain information and support.

• Interpersonal attraction.

This strategy builds the relationship with one‟s immediate manager on the basis
that he or she will have an impact on career progression. One form of this is „opinion
conformity‟; that is, sharing the key opinions of the individual‟s manager, perhaps with
minor deviations. Another is expressed as „other enhancement‟, which may involve
sharing personal information with one‟s manager and becoming interested in similar
pursuits.

95
 Part IV

Rewarding and motivating HR

Q4.1 Performance appraisal

 Meaning and importance

 Performance appraisal process
 Performance appraisal methods
 Obstacles and distribution
 Creating more effective performance

Reward and compensation

 Reward and compensation

 Job evaluation
 Compensation administration
 Executive compensation
 benefits

96
 4.1 Performance Appraisal

Meaning and purpose:

Meaning:

Performance appraisal is by which organizations evaluate individual job

performance. When it is done correctly, employee, their supervisors, the HR department
and ultimately the organization benefits.

Purpose:

Why do a performance appraisal? Performance appraisal primarily meant for “to

tell employees now they had done over a period of time and to let them know what
pay raise they would receive”. Then other uses for performance appraisal are;

 Performance improvement
 Compensation adjustments
 Placement decisions
 Training and development needs
 Feedback to human resources

The performance appraisal process

1. Establish performance standards with employees

2. Mutually set measurable goals

3. Measure actual performance

4. Compare actual performance with standards

5. Discus the appraisal with the employee

6. If necessary, initiate corrective action

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1. Establish performance standards with employee

The appraisal process begins with establishment of performance standards in

accordance with the organization‟s strategic goals. These performance standards
should be clear and objective enough to be understood and measured.

2. Mutually set measurable goals

Once performance standard are established, it is necessary to communicate

these expectations to employees and then come up with measurable goals after
consultation with employees.

3. Measure actual performance

The third step is performance measurement. In it we determine what actual

performance is, we need information about it. We should be concerned with how we
measure and what we measure.

4. Compare actual performance with standards

The fourth step in the appraisal process is the comparison of actual performance
with standards. This step notes deviations between standard performance and actual
performance, so that we can proceed to the fifth step.

5. Discuss the appraisal with the employee

It is important step and effects employee motivation. It is easy to tell employee

good news as compare to bad news. That is why appraisal must be done carefully.

6. If Necessary, Initiate corrective actions

The final step in the appraisal is the identification of corrective action where necessary.

Performance appraisal methods

There are three approaches for performance appraisal

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1. Evaluating absolute standards

The first approach is absolute standards i-e measuring an employee‟s performance

against established standards. Following are appraisal methods which use evaluating
absolute standards approach.

I. Critical incident appraisal

II. The checklist
III. The adjective rating scale
IV. Force choice
V. Behaviorally anchored rating scales

I. Critical incident appraisal

A performance evolution that focuses on key behaviors that differentiate

between doing a job effectively or ineffectively.

II. Checklist appraisal

A performance evolution in which a rater checks off applicable employee attributes.

III. Adjective rating scale

A performance appraisal method that lists traits and a range of performance for each.

Example;

Traits Performance

Quality of work unsatisfactory satisfactory superior

IV. Forced choice appraisal

A performance evolution in which the rater must choose between two

specific statements about an employee‟s work behavior.

99
V. Behaviorally anchored rating scale

A performance appraisal technique that generates critical incidents and

develops behavioral dimensions of performance. The evaluator appraises behaviors
rather that traits.

2. Relative standards

It‟s a second approach and it says “evaluation an employee‟s performance by

comparing the employee with other employees.

Following three methods comes under this approach.

I. Group order ranking

II. Individual ranking
III. Paired comparison

I. Group order ranking

Group order ranking requires the evaluator to place employees into particular
classification such as “top 20 percent”.

II. Individual ranking

Ranking employees performance from highest to lowest.

III. Paired comparison

Ranking individual‟s performance by counting the times any one individual is

preferred member when compared with all other employees.

3. Outcomes

The third approach to appraisal makes use of achieved performance outcomes.

Employees are evaluated on how well they accomplished a specific set of objectives
determined as critical in the successful completion of their job. This approach is
frequently

100
referred to as goal setting, in many cases more commonly referred to as
management by objective (MBO).

Management By Objective (MBO)

A performance appraisal method that induces mutual objective setting and

evaluation based on the attainment of the specific objectives.

Obstacles and distortions

Following factors distort appraisal.

Inappropriate Leniency
substitute error

Inflationary Distortion
Halo error
pressure

Central Similarity
tendency error

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1. Leniency Error

Performance appraisal distortion caused by evaluating employees against one‟s

own value system. The leniency bias results when raters tend to be easy in evaluating
the performance of employees. Such raters see all employee performance as good
and rate it favorably.

2. Halo error

The halo error occurs when the rater‟s personal opinion of the employee
influences the measurement of performance. For example, if a supervisor likes an
employee, that opinion may distort estimates of the employee‟s performance. This
problem is most sever when raters must evaluate personality traits (instead of
behaviors), their friends, or people they strongly dislike.

3. Similarity error

Evaluating employee based on the way an evaluator perceives himself or

herself. When evaluators rate other people in the same way that the evaluators
perceive themselves, they make a similarity error. For example, the evaluator who
perceives himself or herself as aggressive may evaluate others by looking for
aggressiveness.

4. Central tendency

The tendency of a rater to give average ratings. It is possible that regardless of

who the appraiser evaluates and what traits are used, the pattern of evaluation
remains the same. Sometimes the evaluator‟s ability to appraise objectively and
accurately has been impeded by a failure to use the extreme scale. When this
happens, we call the action central tendency.

5. Inflationary pressure

Inflationary pressure affects the no of employees to be promoted. Inflationary

pressures have always existed but appear to have increased as a problem over the
past three decades. As equality values have grown in importance in our society, as well
as fear of retribution from disgruntled employees who fail to achieve excellent
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appraisals, evaluation has tended to be less

103
rigorous and negative repercussions from the evaluation to be reduced by generally
inflating or upgrading appraisals.

6. Inappropriate substitute

Inappropriate substitute for performance means using alternative

standard of performance due to uncontrollable environmental conditions.

Creating more effective performance management system

Performance appraisal system can be effective by using following suggestions.

SUCCESS
=
Train appraiser
+
Rate selectively
+
Have multiple raters
+
Provide ongoing feedback
+
Combine absolute and relative standards
+
Use behavior-based measures

1. Use behavior based measures

From evidence it is clear that behavior based measures are better than that
are build around traits.

Examples:

One example of trait is loyalty. What is loyalty? How you can measure loyalty? So
traits suffered from weak agreement between raters.

One example of behavior, frequently says ”Good morning to customers”.

104
2. Combine absolute and relative standards

Use together absolute and relative standard to measure performance of

individuals instead of using a single standard.

3. Provide ongoing feedback

Proved feedback to employees continuously instead of once at the end of year,

its better to conduct monthly, quartly and semiannual appraisal.

4. Use multiple rater.

There should be more than one person who are rating an employee‟s
performance. Peer evaluation, upward evaluation and 360-degree appraisals can be
used for this purpose.

5. Rate selectively

Appraisers should rate only in those areas in which they have significant fob
knowledge and not in areas where they are weak.

6. Train appraisers

Use train and qualified appraisers for performance appraisal, otherwise it will be
messed up.

4.2 Reward and Compensation

Compensation and rewards is what employee receives in exchange for their

contribution to the organization. The most obvious rewards/compensation employee
receive from work is pay. However compensation also include promotions, desirable
work assignments and or host of other less obvious pay offs- a smile, peer acceptance,
work freedom, or a kind word of recognition.

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Job evaluation and pay

structure Job evaluation

Job evaluation is the process whereby an organization systematically establishes

its compensation program, in this p process, jobs are compared in order to determine
each hob‟s appropriate worth within the organization.

Job evaluation methods

Three basic methods of job evaluation are;

1. Ordering method

The ordering method requires a committee composed of both management

and employee to arrange jobs in a simple rank order, from highest to lowest. No
attempt is made to break down the jobs by specific weighted criteria. The committee
members merely compare two jobs and judge which one is more important or more
difficult to perform. Then they compare another job with the first two and so on until all
the jobs have be evaluated and ranked.

2. Classification method

“evaluating jobs based on predetermined grades”

Job grades are classification of jobs like shop jobs, clerical jobs, and sales jobs
etc. once classification are established, they are ranked in an overall order of
importance according to the criteria chosen, and each job is placed in its appropriate
classification.

3. Point method

The last method we will present brakes down jobs based on various identifiable
criteria (such as skill, efforts, and responsibility) and allocates points to each of these
criteria.

Example;

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Job class: clerk

Factor 1st degree 2nd degree 3rd degree

Skill

1. education 22 44 66

2. problem solving 14 28 72
Responsibility
1. safety of others 5 10 15
2. word of others 7 14 21
Pay structure

Once the job evaluation is complete the data generated becomes the nucleus
of the organization pay structure. This means establishing pay rates or ranges
compatible with the ranks, classifications, or points arrived at through job evolution. Any
of three job evolution methods discussed earlier provide the necessary input for
developing the organization‟s overall pay structure. Three important concepts related
to par are;

1. Compensation surveys

Used to gather factual data on pay practices among firms and companies
within specific communities.

107
2. Wage curve

After the compensation committee arrives at points totals from job evaluation
and obtains survey data on what comparable organizations are paying for similar jobs,
a wage curve can be fitted to the data

80000

70000

60000
Monthly salary in Rs.
(Obtain from survey)

50000 Wage Curve .

40000 .
30000 .
20000 .
10000 .

100 200 300 400 500

(Points obtain from job evaluation)

108
The wage structure

It is only short step from plotting a wage curve to developing the organization‟s
wage structure job similar in terms of classes, grades or pints are grouped together.

For example in above wage curve, pay grade may cover the range from 0 to 100
points, wage grade 2 from 100 to 200. This is shown below.

80000

70000
Grade 4
Monthly salary in Rs.

60000
Grade 3
50000
Grade 2
40000
Grade 1
30000

20000
10000

100 200 300 400 500

(Points)

109
Compensation administration

Lets see compensation administration phase;

Job Analysis
Phase I
Position Job descriptions Job standards
Identity & study
descriptions
jobs

Job evaluation
Phase II

Internal Job Job Factor Point

ranking grading pricing system
equity
Wage & salary surveys

Employers Professional Self conducted State

Phase III association association surveys unemployment
External office

equity

Pricing jobs
Phase IV

Matching internal Job evaluation match Labor marked

worth rate
and
external worth
Rate of each job

Let‟s explain above diagram.

Job analysis

The process of describing job, duties, authority relationships, skills required,

110
conditions of work, and additional relevant information.

Job evaluation

[Described earlier in detail]

111
Wage and salary surveys

[Discussed earlier as compensation survey]

Pricing jobs

It means determining the rate of each hob, considering job evaluation and salary surveys.

Executive compensation programs

“Executive pay” is a special topic of “Compensation”, but it does require much

attention because it does have several twists. Let‟s see them one by one.

First

The basic salaries of executives are almost 300 times higher than those of
low-level managers.

Second

Executive bonus and stock option plan can dramatically increase total compensation.

Finally

Executives receive perquisites (called perks) or special benefits that other don‟t.

It is well known that executives in the private sector receive considerably higher
compensation than do their counter parts in the public sector.

In short executives “Looting companies”

Employee

benefits Definition

Membership-based, non financial rewards offered to attract and keep employees.

Types of benefits

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1. Legally required benefits

Most employers are required by law to offer these benefits. Example;

 Social security
 Worker‟s compensation
 Family and medical leave
 Unemployment compensation

2. Voluntary benefits

These benefits are up to organization, whether it pays or not. For example;

Health insurance and its different types

3. Retirement benefits

What an employee will get at the time of retirement. For example;

 Commute
 Monthly pension

4. Paid time-off

It means you are being paid, even though you are on leave. For example;

 Vacation and holiday leave

 Disability insurance

5. Survivor benefits

Example;

 Group term life insurance

 Travel insurance

113
 Part 05

Labor management relations and collective bargaining

Union

Q5.1 unionization

 Union
 Collective bargaining
o Objectives and scope
o Players
o Legal framework
o Power

bases Impasses and

resolution Strikes and

lockouts

Q5.2 Discipline and grievance handling

 Discipline
 Meaning
 Causes of disciplinary action
 Disciplinary guidelines
 Disciplinary

process Q5.3

Grievance

 Meaning
 procedure

114
 5.1 Labor management relations and collective bargaining

Union

Introduction

Organization of workers, acting collectively, seeking to protect and promote

their mutual interests through collective bargaining.

Why employees join unions?

The employees join unions because of following reasons

Higher wages and benefits

 Greater job security

 Influence over worker rules

 Compulsory membership
 Upsets with management
 Unionizing employees

Unorganized

Authorization card: A card signed by prospective

union members indicating in having a union
election held at their work site.

Petition to authority for election

Vote taken: Did union receive a majority vote?

115
Certification bargaining unit

116
 Collective

bargaining

Definition

The negotiation, administration, and interpretation of written agreement

between two parties, at least of which represents a group that is acting collectively,
that covers a specific period of time.

Objective

The objective of collective bargaining is to agree on a contract acceptable to

management, union representatives, and the union membership.

Scope of collective bargaining

Collective bargaining generally negotiates on;

 Wages
 Work hours

 Terms and conditions of employment

 Special issues
 Legal framework and process

Legal framework and process

Preparation for

Contract negotiations

No
Agreement

Union ratification No
Yes
Prepare for next
Contract administration
Yes 108
 Q5.2 Discipline & Governance handling

Discipline

Meaning

Discipline is management action that encourages compliance with

organizational standards.

Types of Discipline

There are two types of discipline

1. Preventive

2. Corrective

1. Preventive Discipline

Preventive discipline is action taken to encourage employees fo follow

standards and rules so that violations are prevented.

2. Corrective Discipline

Corrective discipline is an action that follows a rule infraction it seeks to

discourage further infractions and ensure future compliance with standards.

Causes of Disciplinary

Action Disciplinary Action

Disciplinary action is a penalty, such as warning or suspension without pay. These

actions are initiated by an employee‟s immediate supervisor but may require
approval by a higher-level manager r HR department, especially when the worker is
union member

Causes of Disciplinary action

1. Violation of rules and regulations

109
 2. Non compliance of laid down procedures and policies
3. Not following of HR standards or guidelines

Disciplinary Process

Verbal reprimand by supervision

Written reprimand, with a record I personnel file

One-to three-day suspension from work

Suspension for one week or longer

Discharge for cause

1. Use behavior based measures

From evidence it is clear that behavior based measures are better than that
are build around traits.

Examples:

One example of trait is loyalty. What is loyalty? How you can measure loyalty? So
traits suffered from weak agreement between raters.

One example of behavior, frequently says ”Good morning to customers”.

2. Combine absolute and relative standards

Use together absolute and relative standard to measure performance of

110
individuals instead of using a single standard.

111
3. Provide ongoing feedback

Proved feedback to employees continuously instead of once at the end of

year, its better to conduct monthly, quietly and semiannual appraisal.

4. Use multiple rater.

There should be more than one person who are rating an employee‟s
performance. Peer evaluation, upward evaluation and 360-degree appraisals can be
used for this purpose.

5. Rate selectively

Appraisers should rate only in those areas in which they have significant fob
knowledge and not in areas where they are weak.

6. Train appraisers

Use train and qualified appraisers for performance appraisal, otherwise it will
be messed up.

112