The Most Important Questions

Antim Prahar

MBA/BBA

By
Dr. Anand Vyas
1 HRM vs. HRD
Human Resource Management (HRM):
HRM is primarily concerned with the administrative and strategic aspects of
managing employees within an organization. It focuses on tasks such as
recruitment, compensation, employee relations, performance
management, legal compliance, and personnel administration.

Human Resource Development (HRD):

HRD is focused on the long-term development and improvement of
employees' skills, knowledge, and capabilities. It involves training and
development, career planning, continuous learning, talent management,
succession planning, and contributing to the organization's culture and
innovation.
BASIS FOR
HRM HRD
COMPARISON

Human Resource Management Human Resource Development means a

refers to the application of principles continuous development function that intends
Meaning
of management to manage the to improve the performance of people working
people working in the organization. in the organization.

What is it? Management function. Subset of Human Resource Management.

Function Reactive Proactive

To improve the performance of the To develop the skills, knowledge and
Objective
employees. competency of employees.
Process Routine Ongoing
Dependency Independent It is a subsystem.
Concerned
People only Development of the entire organization.
with
2 SHRM: Introduction, Characteristics and
Scope of SHRM
• Introduction to Strategic Human Resource Management (SHRM):
Strategic Human Resource Management (SHRM) is a comprehensive
and integrated approach to managing human resources within an
organization. It involves aligning HR practices and policies with the
overall strategic goals and objectives of the organization. SHRM
recognizes that human capital is a valuable and strategic asset that
can significantly contribute to an organization's success and
competitive advantage.
Characteristics of Strategic Human Resource Management:
• Alignment with Business Strategy: SHRM involves ensuring that HR strategies and
practices are closely aligned with the broader business strategy of the organization. HR
decisions are made with a clear understanding of how they impact the achievement of
organizational goals.
• Long-Term Perspective: SHRM takes a long-term view of human capital development. It
focuses on nurturing and developing employees over time to create a sustainable
competitive advantage.
• Proactive Approach: SHRM emphasizes a proactive approach to HR management,
anticipating future challenges and opportunities rather than reacting to immediate
needs.
• Customization: SHRM recognizes that there is no one-size-fits-all approach. HR strategies
are customized to suit the specific needs and context of the organization.
• Emphasis on People: While traditional HRM may focus on administrative tasks, SHRM
places a significant emphasis on treating employees as valuable assets and sources of
competitive advantage.
• Integration with Organizational Culture: SHRM ensures that HR practices are consistent
with and contribute to the organization's culture, values, and mission.
Scope of Strategic Human Resource Management
1. Talent Acquisition and Retention: SHRM involves developing strategies to
attract and retain the right talent, ensuring a workforce that aligns with the
organization's needs.
2. Training and Development: SHRM focuses on identifying skill gaps and
providing targeted training and development programs to enhance employee
capabilities.
3. Performance Management: SHRM includes designing performance appraisal
systems that link individual and team performance to organizational objectives.
4. Succession Planning: SHRM involves identifying and developing future leaders
within the organization to ensure a smooth transition of key positions.
5. Employee Engagement and Motivation: SHRM aims to create a positive work
environment that fosters employee engagement, motivation, and commitment.
6. Change Management: SHRM assists in managing organizational change by
involving employees and ensuring that HR practices support the transition.
7. Diversity and Inclusion: SHRM addresses diversity and inclusion issues,
recognizing the value of a diverse workforce in driving innovation and
adaptability.
3 Roles of HR in merger and acquisitions
 Due Diligence and Analysis:
HR plays a critical role in conducting due diligence on the target company's
workforce. This involves assessing the target company's HR practices,
employment contracts, compensation structures, benefits plans, potential
liabilities (such as legal or compliance issues), and cultural fit. The findings help
the acquiring company understand potential risks and make informed
decisions.
 Integration Planning and Strategy:
HR contributes to developing a comprehensive integration plan that outlines how
the two organizations will merge their HR functions, policies, and practices.
This includes addressing cultural differences, aligning compensation and
benefits, defining new organizational structures, and establishing a
communication strategy.
 Communication and Change Management:
HR plays a pivotal role in communicating the M&A process to both the acquiring
and target company employees. This involves managing employee
expectations, addressing concerns, and ensuring transparency throughout the
transition. Change management strategies are developed to facilitate a smooth
cultural integration and minimize disruption.
Talent Retention and Transition:
HR focuses on retaining key talent during and after the M&A process.
Special attention is given to critical roles and high-performing
employees to ensure a seamless transition. This may involve offering
retention bonuses, career development opportunities, or
personalized transition plans.
Legal and Regulatory Compliance:
HR ensures compliance with employment laws, labor regulations, and
other legal requirements during the M&A process. This includes
handling issues related to employee contracts, labor unions, benefits,
and other HR-related legal matters.
Benefits and Compensation Alignment:
HR works to align compensation and benefits packages across the
merged organizations. This involves evaluating and harmonizing salary
structures, bonus programs, retirement plans, and other benefits to
create equitable and competitive offerings.
Integration of HR Systems and Processes:
HR oversees the integration of HR software, systems, and processes. This
includes merging payroll systems, HR databases, time and attendance
tracking, and other technology platforms to streamline HR operations.
Cultural Integration:
HR helps manage the cultural integration between the two organizations.
This involves identifying shared values, creating a unified company culture,
and addressing potential conflicts to foster a collaborative environment.
Employee Training and Development:
HR develops training programs to address skill gaps and ensure that
employees from both organizations are equipped to work effectively in the
new environment. This may include cross-training, leadership
development, and skill enhancement initiatives.
Post-Merger Evaluation and Adjustment:
HR continues to monitor the success of the integration and makes necessary
adjustments based on employee feedback and performance metrics.
Ongoing assessment helps ensure that the M&A objectives are being met
and that any issues are addressed promptly.
4 Job Design, Description and Specification
/ Human Resource Planning Factors and methods
• Job Design: Job design refers to the process of structuring and
organizing the various components of a job to improve efficiency,
productivity, employee satisfaction, and overall organizational
performance. It involves determining the tasks, responsibilities, and
interactions required for a specific job role. Effective job design takes
into consideration the skills and capabilities of employees, as well as
the overall goals and objectives of the organization.
• Job design can impact various aspects of work, including task variety,
autonomy, skill utilization, and the level of challenge. It aims to create
jobs that are meaningful, motivating, and contribute to both
individual and organizational success.
• Job Description: A job description is a formal written document that outlines the
essential tasks, responsibilities, duties, and requirements of a specific job role
within an organization. It provides a clear and detailed overview of what the job
entails and serves as a reference for employees, managers, and HR personnel. A
well-written job description typically includes:
• Job Title: The title of the job role.
• Job Summary: A brief overview of the job's purpose and key responsibilities.
• Duties and Responsibilities: Detailed description of tasks, duties, and
responsibilities associated with the job.
• Qualifications: Required education, experience, skills, and competencies.
• Reporting Structure: To whom the role reports and who reports to the role.
• Work Environment: Information about the physical and social aspects of the
work environment.
• Salary and Benefits: If applicable, information about compensation and benefits
associated with the job.
Job Specification: Job specification is a component of the job description that
outlines the specific qualifications, skills, knowledge, and attributes that an
individual must possess to perform the job successfully. It provides a detailed
profile of the ideal candidate for the position. Job specification includes
information such as:
• Educational Background: Required degrees, certifications, or qualifications.
• Experience: Relevant work experience, including years and type of experience.
• Skills and Competencies: Specific skills, technical knowledge, and personal
attributes needed for the job.
• Physical Requirements: Any physical abilities or limitations required for the job.
• Cognitive Abilities: Mental and cognitive skills needed, such as problem-solving
or analytical thinking.
• Communication Skills: Level of proficiency in written and verbal communication.
• Other Requirements: Any additional qualifications or characteristics that are
relevant to the job role.
Human Resource Planning Factors and method
• Human Resource Planning (HRP) involves identifying and addressing the current
and future human resource needs of an organization to achieve its strategic goals.
Various factors influence the process of human resource planning. Here are some
key factors to consider:
1. Organizational Strategy and Goals: The overall strategic direction and
objectives of the organization drive human resource planning. HRP aligns HR
practices with the business strategy to ensure the right workforce is in place to
achieve organizational goals.
2. Workforce Demand and Supply: Analyzing the current and future workforce
requirements against the available talent pool is crucial. HRP anticipates labor
shortages or surpluses and develops strategies to address them.
3. Economic Conditions: Economic factors, such as GDP growth, inflation, and
labor market conditions, influence an organization's hiring and retention
strategies. Economic fluctuations can impact talent availability and
compensation trends.
4. Technological Advances: The adoption of new technologies can change skill
requirements and workforce composition. HRP assesses the impact of
technology on job roles and identifies skill gaps that need to be addressed.
5. Demographic Trends: Factors like aging workforce, generational shifts, and
diversity influence HRP. Organizations need to adapt their practices to attract
and retain employees from different age groups and backgrounds.
6. Labor Market Trends: HRP considers trends in the labor market, including
availability of skilled workers, competition for talent, and industry-specific
demands.
7. Globalization and International Expansion: Organizations expanding globally
need to plan for staffing needs across different regions, considering cultural
differences, regulatory requirements, and talent availability.
8. Regulatory and Legal Compliance: Laws and regulations related to labor,
employment, and workplace practices impact HRP. Organizations must ensure
compliance with laws affecting recruitment, hiring, compensation, and
employee rights.
Methods
1. Forecasting Demand and Supply: This method involves estimating
the future demand for employees based on factors such as business
growth, expansion, and market trends. At the same time, it assesses
the current and future supply of employees within the organization.
By comparing demand and supply, organizations can identify
potential gaps and develop strategies to address them.
2. Trend Analysis: Trend analysis involves analyzing historical data
related to workforce size, turnover rates, recruitment patterns, and
other relevant factors. This helps in identifying patterns and trends
that can inform future HR needs.
3. Ratio Analysis: Ratio analysis involves calculating various HR ratios,
such as employee-to-manager ratio or sales-per-employee ratio, to
understand the optimal workforce size needed to support specific
business metrics.
4. Managerial Judgment: This method involves seeking input from
managers and department heads to gather insights into future workforce
needs. Managers use their expertise and knowledge of their
departments to estimate staffing requirements.
5. Workforce Modeling: Workforce modeling uses mathematical models
and statistical techniques to project future HR needs based on different
scenarios and assumptions. It can help organizations plan for different
contingencies.
6. Skills Inventory: A skills inventory assesses the skills, qualifications, and
competencies of existing employees. This information can be used to
identify skill gaps and determine the need for training, development, or
recruitment.
7. Succession Planning: Succession planning focuses on identifying and
developing potential successors for key positions within the organization.
This method ensures a pipeline of talent ready to take on critical roles in
the future.
5 IHRM principles
• International Human Resource Management (IHRM) involves the management of human
resources in a global context, considering the complexities and challenges that arise
when organizations operate across different countries and cultures. Here are some key
principles of IHRM:
• Global Perspective: IHRM recognizes that the organization operates within a global
environment, and HR practices must be aligned with the broader international strategy
and objectives.
• Cultural Sensitivity: Understanding and respecting cultural differences is crucial. IHRM
takes into account various cultural norms, values, and practices when designing HR
policies and managing employees from diverse backgrounds.
• Local Adaptation: IHRM balances the need for consistent global practices with the
necessity to adapt HR policies and practices to local laws, customs, and regulations.
• Cross-Border Collaboration: IHRM emphasizes collaboration and communication across
borders, ensuring that teams in different locations work effectively together toward
common goals.
• Talent Management: IHRM focuses on identifying, attracting, and retaining talent
globally. This involves strategies for expatriate assignments, repatriation, and leveraging
local talent pools.
• International Staffing: IHRM addresses staffing needs through various approaches,
including expatriation (sending employees to work in foreign locations), inpatriation
(bringing foreign employees to the home country), and local hiring.
• Global Compensation and Benefits: IHRM develops compensation and benefits packages
that consider global market conditions, local cost of living, and ensure equity across
diverse locations.
• Language and Communication: IHRM recognizes the importance of effective cross-
cultural communication and may provide language training to employees to facilitate
collaboration.
• Legal and Regulatory Compliance: IHRM ensures compliance with complex international
labor laws, employment regulations, and tax requirements in different countries.
• Diversity and Inclusion: IHRM promotes diversity and inclusion practices that foster a
multicultural and inclusive workplace, leveraging diverse perspectives for innovation and
growth.
• Training and Development: IHRM provides training and development opportunities that
equip employees with the skills needed to work effectively in global contexts.
• Ethics and Social Responsibility: IHRM addresses ethical considerations and social
responsibility on a global scale, adhering to ethical standards and considering the impact
of HR decisions on local communities.
• Cross-Cultural Leadership: IHRM develops leaders who can navigate and lead teams
across diverse cultural settings, adapting leadership styles as needed.
6 Method of Recruitment
• Recruitment methods are the various approaches and strategies organizations
use to attract and select potential candidates for job openings. The choice of
recruitment methods depends on factors such as the job role, industry,
organization's size, budget, and the desired pool of candidates. Here are some
common methods of recruitment:
• Internal Recruitment: Filling job vacancies from within the organization. This can
include promotions, lateral moves, and transfers.
• External Recruitment: Seeking candidates from outside the organization.
• a. Online Job Boards: Posting job openings on popular job websites like LinkedIn,
Indeed, Glassdoor, and industry-specific platforms.
• b. Company Website: Advertising job opportunities on the organization's official
website's career or job openings section.
• c. Social Media: Utilizing social media platforms like LinkedIn, Facebook, Twitter,
and Instagram to announce job openings and engage with potential candidates.
• d. Print Advertisements: Placing job ads in newspapers, magazines,
and industry publications.
• e. Job Fairs: Participating in or hosting job fairs or career expos to
interact with potential candidates face-to-face.
• f. Professional Associations: Collaborating with industry-specific
professional associations to access a targeted talent pool.
• g. Campus Recruitment: Visiting colleges and universities to recruit
fresh graduates and entry-level talent.
• h. Recruitment Agencies: Partnering with external recruitment
agencies or headhunters to source and screen candidates.
• Employee Referrals: Encouraging current employees to refer qualified
candidates from their network for job openings.
• Networking: Building relationships with potential candidates through
industry events, conferences, and online platforms.
• Direct Contact: Proactively reaching out to potential candidates via
email, social media, or phone.
• Internship Programs: Hiring interns who have demonstrated potential
and skills for full-time roles within the organization.
• Recruitment Drives: Organizing recruitment drives or open house
events to attract a larger number of potential candidates.
• Job Postings in Industry-specific Locations: Placing job ads or
postings in places where the target audience is likely to visit, such as
industry forums, trade publications, or specific online communities.
7 Nature and importance and Types of Training
• Nature of Training:
Training is a systematic process of acquiring knowledge, skills, competencies,
and attitudes to improve an individual's performance in a specific job role.
The nature of training is characterized by the following key aspects:
1. Structured Process: Training involves a planned and organized process
that includes identifying training needs, designing training programs,
delivering content, and evaluating outcomes.
2. Skill Enhancement: The primary focus of training is to enhance the skills
and capabilities of individuals, enabling them to perform their job tasks
more effectively.
3. Learning and Development: Training emphasizes learning and
development by providing opportunities for individuals to acquire new
knowledge, learn best practices, and improve their performance.
4. Performance Improvement: The ultimate goal of training is to improve
job performance, leading to increased productivity, efficiency, and
quality of work.
8. Customization: Training programs are often tailored to the specific
needs of individuals or groups, considering their roles,
responsibilities, and skill gaps.
9. Continuous Process: Training is not a one-time event; it's an
ongoing process that adapts to changing job requirements,
technology, and organizational goals.
10. Involvement of Trainers: Trainers, whether internal or external, play
a crucial role in delivering training content, facilitating learning, and
providing guidance.
11. Evaluation and Feedback: Training effectiveness is assessed
through evaluation methods, such as tests, assessments, and
feedback mechanisms, to ensure that learning objectives are met.
• Importance of Training:
1. Training holds significant importance for both individuals and
organizations, contributing to improved performance and overall
success:
2. Enhanced Productivity: Well-trained employees are more
competent and efficient in their roles, leading to increased
productivity and output.
3. Skill Development: Training provides employees with the skills and
knowledge required to perform their job tasks effectively and
efficiently.
4. Adaptation to Change: Training helps employees adapt to
technological advancements, changes in processes, and evolving
job requirements.
5. Employee Satisfaction: Offering training opportunities demonstrates an
organization's investment in employees' growth and development,
leading to higher job satisfaction and motivation.
6. Retention and Engagement: Employees who receive training are more
likely to feel valued and engaged, contributing to higher retention rates.
7. Innovation and Creativity: Training can stimulate creativity and
innovation by exposing employees to new ideas, approaches, and
perspectives.
8. Reduced Errors and Accidents: Proper training can lead to a decrease in
errors, accidents, and workplace incidents, promoting a safer work
environment.
9. Career Advancement: Training prepares employees for advancement
opportunities within the organization, fostering career growth and
progression.
• Types of Training:
• There are various types of training methods designed to address
different learning needs and objectives:
• On-the-Job Training: Learning while performing job tasks, often
through shadowing, coaching, mentoring, or job rotation.
• Off-the-Job Training: Conducted outside the work environment and
includes workshops, seminars, conferences, and e-learning.
• Classroom Training: Instructor-led training in a classroom setting,
allowing for direct interaction and discussion.
• E-Learning: Online training delivered through digital platforms,
allowing learners to access content at their own pace.
• Simulations: Immersive training experiences that replicate real-world
scenarios, often used for skill-building in complex or hazardous
situations.
• Hands-On Training: Practical training involving hands-on experience
with tools, equipment, or technology.
• Role-Playing: Participants simulate specific scenarios to practice
interpersonal skills, customer interactions, or conflict resolution.
• Case Studies: Analyzing real or fictional cases to apply theoretical
knowledge to practical situations.
• Job Aids: Providing resources like manuals, guides, or checklists to aid
in performing tasks.
• Cross-Training: Learning tasks or roles beyond one's primary
responsibilities to increase versatility.
• Feedback and Coaching: Regular feedback and coaching sessions to
enhance performance and address developmental areas.
• Team-Based Training: Collaborative training involving group activities
and discussions to foster teamwork and communication skills.
8 HRM Scope, importance and Function
Scope of Human Resource Management (HRM):
1. Human Resource Management (HRM) encompasses a wide range of
activities and responsibilities related to managing the organization's
workforce. The scope of HRM includes:
2. Recruitment and Selection: Attracting, sourcing, and selecting the
right candidates for various job positions within the organization.
3. Training and Development: Identifying skill gaps, designing training
programs, and providing learning opportunities to enhance
employee competencies.
4. Performance Management: Setting performance standards,
conducting performance appraisals, and managing employee
development plans.
5. Compensation and Benefits: Designing and administering compensation
structures, benefits packages, and incentives to attract and retain employees.
6. Employee Relations: Handling employee grievances, conflicts, and creating a
positive work environment to foster good relations.
7. Workforce Planning: Assessing current and future staffing needs, forecasting
labor supply and demand, and developing strategies to meet organizational
goals.
8. Health and Safety: Ensuring a safe and healthy work environment by
implementing safety regulations and wellness programs.
9. Legal Compliance: Ensuring adherence to labor laws, regulations, and
employment standards to avoid legal issues.
10. Diversity and Inclusion: Promoting diversity, equity, and inclusion in the
workplace to harness the benefits of a diverse workforce.
11. Organizational Development: Initiating programs and interventions to improve
organizational effectiveness, culture, and performance.
12. Employee Engagement: Creating strategies to enhance employee motivation,
job satisfaction, and commitment to the organization.
13. Talent Management: Identifying high-potential employees, grooming future
leaders, and implementing succession planning.
Importance of Human Resource Management:

1. HRM plays a pivotal role in organizations for various reasons:

2. Strategic Alignment: HRM aligns workforce strategies with
organizational goals, contributing to overall business success.
3. Talent Acquisition and Retention: Effective HRM practices attract
and retain skilled employees, reducing turnover costs.
4. Employee Development: HRM ensures continuous learning and
development, improving employee performance and growth.
5. Performance Improvement: By setting performance standards and
offering feedback, HRM enhances overall employee effectiveness.
6. Conflict Resolution: HRM resolves conflicts and disputes,
maintaining a harmonious work environment.
7. Legal Compliance: HRM ensures adherence to labor laws,
preventing legal risks and liabilities.
8. Culture and Morale: HRM fosters a positive workplace culture and
high employee morale.
9. Innovation and Adaptation: HRM helps organizations adapt to
changing market trends and technological advancements.
10. Leadership Development: HRM identifies and nurtures future
leaders, ensuring organizational continuity.
• Functions of Human Resource Management:
HRM encompasses several core functions:
1. Staffing: Attracting and hiring qualified candidates through
recruitment and selection processes.
2. Training and Development: Enhancing skills and knowledge
through training programs and career development initiatives.
3. Compensation and Benefits: Designing competitive salary
structures and comprehensive benefits packages.
4. Performance Management: Evaluating employee performance,
setting goals, and providing feedback.
5. Employee Relations: Handling employee grievances, managing
conflicts, and ensuring a positive work environment.
6. Health and Safety: Ensuring workplace safety and wellness to
protect employees' physical and mental well-being.
7. Legal Compliance: Ensuring compliance with labor laws,
regulations, and ethical standards.
8. Organizational Development: Implementing interventions to
improve overall organizational effectiveness.
9. Employee Engagement: Creating strategies to enhance job
satisfaction, motivation, and commitment.
10. Talent Management: Identifying and nurturing high-potential
employees for future leadership roles.
11. HR Analytics: Utilizing data and metrics to make informed HR
decisions and strategies.
12. Diversity and Inclusion: Promoting diversity and creating an
inclusive work environment.
9 Job Evaluation: Meaning and Methods of Job Evaluation

• Job evaluation is a systematic process used by organizations to

determine the relative value or worth of different jobs within the
organization. It involves assessing various job factors, such as skills,
responsibilities, complexity, and working conditions, to establish a fair
and equitable pay structure. The primary goal of job evaluation is to
create a rational and internally consistent compensation system that
reflects the relative importance of different jobs and ensures that
employees are compensated fairly based on the nature of their work.
• Methods of Job Evaluation:
1. There are several methods of job evaluation, each with its own approach
and criteria. The choice of method depends on the organization's size,
structure, industry, and objectives. Here are some common methods of
job evaluation:
2. Ranking Method: This method involves ranking jobs from highest to
lowest based on their perceived value to the organization. A committee
or group of evaluators compares jobs and arranges them in a hierarchical
order. While it's a simple method, it may not be suitable for organizations
with a large number of jobs.
3. Job Classification Method: In this method, jobs are classified into
predefined categories or grades based on their characteristics and
responsibilities. Each grade has a predetermined pay range. Jobs within
the same category are assumed to have similar levels of value.
4. Point-Factor Method: This is a more detailed and systematic method
that assigns points to various job factors, such as skill level, responsibility,
physical effort, and working conditions. The sum of points determines
the job's overall value, which is then used to determine its compensation
level.
5. Factor Comparison Method: This method combines elements of the ranking
and point-factor methods. Jobs are evaluated based on key factors, and a
monetary value is assigned to each factor. Jobs are then ranked based on the
total point value, and a job's monetary value is determined by comparing it to
other jobs.
6. Market Pricing Method: This method involves benchmarking jobs against
market data, specifically analyzing how similar jobs are compensated in
external labor markets. Market surveys provide information about prevailing
wage rates for different jobs, helping organizations set competitive pay levels.
7. Hay System: The Hay System uses three factors—knowledge, skill, and
responsibility—to evaluate jobs. Each factor is further divided into subfactors,
and points are assigned based on the level of each subfactor. The points are
then used to determine a job's overall value.
8. Factor Comparison System: Similar to the factor comparison method, this
approach assigns monetary values to job factors based on a comparison of
different jobs. However, this method explicitly uses market pay rates to
establish the value of each factor.
9. Analytical Hierarchy Process (AHP): AHP is a mathematical model that
evaluates jobs based on multiple criteria, allowing for complex comparisons
and weighting of different factors. It provides a structured approach to job
evaluation.
 10 Performance Appraisal: Meaning and Types of Appraisal

• Performance appraisal, also known as performance evaluation or

performance review, is a systematic process in which an organization
assesses an employee's job performance and provides feedback on their
strengths, weaknesses, and areas for improvement. The primary
purpose of performance appraisal is to evaluate an employee's
contributions, set performance goals, and facilitate career development.
It plays a crucial role in enhancing employee performance, providing
recognition, and aligning individual goals with organizational objectives.
• Modern Methods:
• a. 360-Degree Feedback: Feedback is collected from multiple sources, including
peers, supervisors, subordinates, and self-assessment, to provide a
comprehensive view of an employee's performance.
• b. Behaviorally Anchored Rating Scale (BARS): This method combines elements
of the rating scale and critical incident methods. It uses specific behavioral
examples to anchor performance ratings.
• c. Assessment Centers: Employees participate in simulated work scenarios and
exercises, where assessors evaluate their performance and competencies.
• d. Behavioral Observation Scale (BOS): Observers use a scale to rate an
employee's behavior in various job-related situations.
• e. Narrative Method: Supervisors provide written narratives describing an
employee's strengths, weaknesses, accomplishments, and areas for
improvement.
• f. Continuous Performance Management: An ongoing process of providing
regular feedback, coaching, and goal setting rather than an annual or periodic
review.
• g. Technology-Enabled Performance Tools: Organizations use software and apps
to track and manage employee performance, facilitate feedback, and set goals.
• Types of Performance Appraisal:
• There are several methods of conducting performance appraisals, each with its own
approach and focus. Organizations often choose the method that best fits their culture,
structure, and performance management goals. Here are some common types of
performance appraisal:
• Traditional Methods:
• a. Graphic Rating Scale: Evaluators assess employee performance based on predefined
criteria, using a numerical scale or descriptive phrases to rate performance levels.
• b. Checklist Method: Evaluators use a checklist of specific behaviors, skills, or traits and
indicate whether an employee exhibits each item.
• c. Rating Scale Method: Similar to the graphic rating scale, this method uses a scale (e.g.,
1-5) to rate various performance dimensions.
• d. Forced Ranking: Employees are ranked based on their performance compared to their
peers. A predetermined percentage of employees are assigned to different categories
(e.g., top performers, average, and low performers).
• e. Management by Objectives (MBO): Employees and managers collaborate to set
specific, measurable, achievable, relevant, and time-bound (SMART) goals. Performance
is assessed based on the achievement of these goals.
• f. Critical Incident Method: Evaluators document specific examples of employee
behavior or performance that demonstrate exceptional or problematic performance.
11 Factors affecting Employee Compensation
• Employee compensation is influenced by a wide range of factors that
impact how organizations determine the wages, salaries, benefits, and
other forms of compensation they offer to their employees. These factors
can vary across industries, organizations, and geographic locations. Here
are some key factors that affect employee compensation:
1. Job Role and Responsibilities: The nature of the job, its complexity, level
of responsibility, required skills, and qualifications play a significant role
in determining compensation. Jobs that require specialized skills or
higher levels of expertise often command higher pay.
2. Market Conditions: Compensation is influenced by the supply and
demand of labor in the market. If there is a shortage of skilled workers in
a particular industry, employers may offer higher compensation to
attract and retain talent.
3. Industry and Sector: Different industries and sectors have varying
compensation norms. Industries that require specialized knowledge or
involve higher levels of risk may offer higher compensation to attract
qualified employees.
4. Geographic Location: Compensation can vary significantly based on the
cost of living and economic conditions in different regions or cities.
Employers in high-cost-of-living areas may offer higher compensation to
match employees' needs.
5. Company Size and Resources: The financial health and resources of the
organization influence its ability to offer competitive compensation. Larger
organizations with greater resources may have more flexibility in providing
attractive compensation packages.
6. Performance and Merit: Individual performance, skills, and contributions
are often used to determine salary increases, bonuses, and other
incentives.
7. Seniority and Experience: Employees with more years of experience or
seniority within the organization may receive higher compensation as they
bring valuable expertise and knowledge.
8. Education and Qualifications: HigheQr levels of education, certifications,
and specialized training can lead to increased compensation, especially in
roles that require specific qualifications.
9. Market Benchmarking: Organizations often conduct market research to
compare their compensation practices with industry competitors to ensure
they remain competitive in attracting and retaining talent.
12 Employee Relation and Industrial Relations
• Employee Relations:
• Employee relations refer to the interactions, communication, and relationships
between employees and the organization, including management and leadership.
It encompasses the efforts and strategies aimed at maintaining a positive and
productive work environment, promoting employee satisfaction, and addressing
any issues or conflicts that may arise. Effective employee relations contribute to a
harmonious workplace, higher morale, improved job performance, and
ultimately, organizational success.
• Key aspects of employee relations include:
• Communication: Open and transparent communication between management
and employees fosters understanding, trust, and a sense of involvement in the
organization's goals and decisions.
• Employee Engagement: Creating conditions that encourage employee
involvement, commitment, and enthusiasm for their work and the organization's
mission.
• Conflict Resolution: Addressing workplace conflicts and grievances in a fair and
timely manner to prevent escalation and maintain a positive work environment.
• Employee Well-Being: Supporting employees' physical, mental, and
emotional well-being through wellness programs, work-life balance
initiatives, and health benefits.
• Employee Recognition: Acknowledging and rewarding employees'
contributions and achievements to boost morale and motivation.
• Performance Management: Establishing clear performance expectations,
providing feedback, and fostering continuous improvement.
• Career Development: Offering opportunities for skill development,
training, and advancement to enhance employee growth and job
satisfaction.
• Workplace Culture: Nurturing a positive workplace culture that values
diversity, inclusion, and respect for all employees.
• Labor-Management Cooperation: Building collaborative relationships
between employees and management to address mutual concerns and
improve working conditions.
• Industrial Relations:
• Industrial relations refer to the relationship and interactions between
employees, unions, and management within an organization or across
industries. It encompasses a broader scope than employee relations and
often involves collective bargaining, negotiations, and the establishment of
labor agreements. Industrial relations are particularly relevant in unionized
environments where labor unions represent the interests of employees.
• Key aspects of industrial relations include:
• Collective Bargaining: The process in which representatives from labor
unions and management negotiate terms and conditions of employment,
such as wages, benefits, and working conditions.
• Labor Agreements: Formal contracts that outline the terms of
employment, rights, and responsibilities of both employees and
management. These agreements often result from collective bargaining.
• Labor Unions: Organizations that represent and advocate for the interests
of workers, including negotiating with employers on behalf of employees.
• Workplace Disputes: Resolving conflicts, disputes, and grievances
between labor unions and management, often involving mediation or
arbitration.
• Labor Legislation: Laws and regulations that govern labor relations,
collective bargaining, strikes, and other aspects of employee-
employer interactions.
• Industrial Action: Various forms of industrial action, such as strikes or
work stoppages, that labor unions may use to leverage their
bargaining power.
• Employee Representation: In unionized environments, employee
representatives or shop stewards may act as intermediaries between
employees and management.
13 Needs and legal provision of employee
health & Safety
• Needs for Employee Health:
• Employee health is a fundamental aspect of a productive and successful
workplace. Addressing the needs for employee health is crucial for various
reasons:
• Health is the state of well-being. It not only includes physical well-being,
but also mental and emotional well-being. It is the responsibility of every
employer to provide healthy work environment to his employees. If he is
careful about their health, cost of disability payments, replacement of
employees who are injured or killed could be avoided. Through employee
safety and health programs the company can enhance the emotional and
physical well-being of the employees.
•
• Legal Provisions for Employee Health:
• The Factories Act, 1948, has been promulgated primarily to provide
safety measures and to promote the health and welfare of the
workers employed in factories. The object thus brings this Act, within
the competence of the Central Legislature to enact. State
Governments/Union Territory Administrations have been empowered
under certain provisions of this Act, to make rules, to give effect to
the objects and the scheme of the Act.
• Applicability: This Act applies to factories or industrial establishments
meeting defined criteria in terms of worker count and manufacturing
activities.
• Section 11: Cleanliness: Factories must maintain cleanliness and eliminate
nuisances, with daily removal of dirt and refuse.
• Section 12: Waste Disposal: Factories must treat and dispose of wastes
and effluents from manufacturing processes to render them harmless.
• Section 13: Ventilation and Temperature: Proper ventilation and
temperature maintenance are required to ensure fresh air circulation in
factories.
• Section 14: Dust and Fume Control: Factories involved in manufacturing
must ensure proper exhaustion of dust, fumes, and impurities.
• Section 15: Artificial Humidification: Humidity levels in factories are
artificially regulated as per State Government guidelines.
• Section 16: Overcrowding Prevention: Rooms in factories must not
be overcrowded to protect workers' health.
• Section 18: Drinking Water: Factories must provide clean drinking
water and suitable drinking water points, with additional provisions
for hot weather.
• Section 19: Urinals and Latrines: Adequate urinal accommodation
must be provided, maintained, and separated by gender.
• Section 20: Spittoons: Factories need proper, well-maintained
spittoons at convenient locations to ensure hygiene.
14 Measures and Policies for Employee Safety at
Work/ Ethics at work
• Ensuring employee safety at work is a top priority for organizations. Implementing
comprehensive measures and policies is crucial to create a safe and secure work
environment. Here are key measures and policies to promote employee safety:
1. Safety Training and Education:
• Provide mandatory safety orientation for all new employees.
• Conduct regular safety training sessions on hazard identification, emergency procedures, and
proper equipment use.
2. Personal Protective Equipment (PPE):
• Enforce the use of appropriate PPE such as helmets, goggles, gloves, and masks in hazardous
areas.
• Regularly inspect and maintain PPE to ensure its effectiveness.
3. Workplace Ergonomics:
• Design workstations and equipment ergonomically to prevent musculoskeletal disorders.
• Encourage proper posture and provide ergonomic tools and accessories.
4. Hazard Identification and Reporting:
• Establish a system for employees to report potential hazards and near-miss incidents.
• Conduct regular workplace inspections to identify and address safety risks.
5. Emergency Response Plans:
Develop comprehensive emergency response plans for fire, natural disasters, medical
emergencies, etc.
Conduct drills to ensure employees are familiar with emergency procedures.
6. Fire Safety:
Install and regularly test fire alarms, extinguishers, and sprinkler systems.
Establish fire evacuation routes and conduct fire drills.
7. Safe Equipment Operation:
Provide proper training for operating machinery, tools, and equipment.
Regularly inspect and maintain equipment to prevent malfunctions.
Chemical Safety:
Clearly label hazardous chemicals and provide Material Safety Data Sheets (MSDS).
Train employees on safe handling, storage, and disposal of chemicals.
5. Fall Prevention:
Install guardrails, safety nets, and harnesses for employees working at heights.
Provide proper training and equipment for working on elevated surfaces.
Ethics at work
• Ethics at work encompasses moral principles that guide behaviors,
decisions, and interactions within the workplace. It involves integrity,
respect, fairness, and accountability. Upholding ethical standards
fosters trust, inclusivity, environmental responsibility, and customer
focus. It entails transparency, confidentiality, and rejecting bribery.
Balancing work and personal life, continuous learning, data security,
and adherence to codes of conduct are vital. Promoting ethics creates
a positive culture, enhances stakeholder trust, and contributes to
organizational success and societal well-being.
•