Page 7:

Human Resource Planning

(HRP)
HRP aligns the goals of employees with
the goals of the organization.
Career development can be achieved
through counseling, promotion, and
training.
HRP takes into consideration the long-
range plans of the organization.
HR requirements are made known to
members of the organization.
Forecasting is done to determine HR
supply.
Organizational development is assisted
by HRP.
Motivation of personnel is ensured
through HRP.
Comparison is made between HR
requirements and HR supply.
If there are no differences, no action is
needed.
If there are differences, action needs to
be taken to address HR surplus or
shortage.
HRP process involves reviewing
organizational objectives and
determining the required workforce.

HR Requirements Forecast
HRD manager forecasts human
resource requirements in terms of
quantity and quality.
Qualified and competent personnel
improve organizational performance.
HRD manager also forecasts the
availability of manpower.
Manpower may be available within the
company or may need to be hired from
the labor market.

Motivating the Manpower

Motivating personnel is an important
aspect of human resource planning.
Monetary and non-monetary incentives
are provided to motivate employees.

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Job Analysis
Job analysis is the foundation of many
human resource management programs.
It clarifies job requirements and
interrelationships among jobs.
Job analysis is important for
organizational structure and design,
human resource planning, recruitment
and selection, placement, performance
appraisal, and training.
Job analysis consists of job description
and job specification.
Job description provides details of the
job in terms of duties and
responsibilities.
Job specification gives details relating
to the candidate who is supposed to do
the job.

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Performance Appraisal
Performance appraisal serves the
purpose of evaluating performance and
developing employees.
It provides performance feedback to
employees.
It helps in human resource planning,
management-labor relations, and
effective communication.
Performance appraisal reports can be
used as documentary evidence.
It facilitates career development,
training, and motivation of employees.
Performance appraisal has limitations
such as halo effect, spillover effect,
central tendency, leniency, and cost
factor.

Page 10: Training

Methods for Human
Resource
Development
Conferences:
Large gathering representing
various sections or divisions of the
organisation.
Experts present views on certain
topics or latest developments.
Business Games:
Executives trained through
analyzing problems and making
trial-and-error decisions.
Develops communication skills,
problem-solving skills, and
decision-making skills.
Readings and References:
Planned reading of relevant and
current management literature.
Self-development program aided
by training department and
internet resources.
Classroom Methods:
Lectures, discussions, role
playing, and case studies.
Seminars and Workshops:
Trainees present papers on work-
related developments.
Experts review and provide
insights on the presented topics.
Interaction and insights from
trainer and other trainees.
Simulation:
Imitation of reality to train in an
environment that reflects actual
workplace conditions.
Useful or necessary when actual
practice could result in serious
errors or injuries.

Page 11: Performance

Appraisal Issues
Problem of Strictness:
Some raters give low scores to all
ratees regardless of performance.
Halo Effect:
Appraisal based on one positive
factor, neglecting other work-
related factors.
Spillover Effect:
Present performance appraisal
influenced by past performance.
Personal Bias:
Appraiser's personal feelings
about a ratee affect objectivity.
Central Tendency:
Some raters follow central
tendency approach, giving
average scores to all ratees.
Paper Work:
Complaints about performance
appraisal reports being pointless
paperwork.
Cost Factor:
Performance appraisal is an
expensive activity.
Problem of Appropriate Technique:
Different evaluation techniques
available, some easier and more
economical than others.
Problem of Leniency:
Some raters give high scores to
everyone, regardless of
performance.
Fear of Confrontations:
Supervisors give above-average
ratings to avoid confrontations.
Impact on Superior-Subordinate
Relations:
Appraisal may affect relations, as
subordinates view the superior as
a judge rather than a coach.
Latest Behaviour Effect:
Rating influenced by most recent
behavior, ignoring overall behavior
during the appraisal period.

Page 12:
Methods of Performance
Appraisal
Simple ranking method
Alternation ranking method
Paired comparison method
Graphic Rating Scale
Check List
Confidential Reports
Narrative Essay
Critical Incident Method
Ranking Method
BARS
HRA
360° Appraisal
Assessment Center
Role Analysis

Traditional Methods
Check List
Confidential Reports

Modern Methods
Critical Incident Method
Role Analysis
Assessment Center
360° Appraisal
BARS
HRA

Page 13:
Retention Strategy
Importance of retaining high performers
Selective retention strategy

Advantages of 360 Degree

Appraisal
Avoids bias
Balanced performance appraisal
Comprehensive performance appraisal

Measures for Employee

Retention
Matching jobs with individuals
Employee Relationship Management
(ERM)
Personnel decisions

Employee Retention
Meaning of employee retention
Importance of retaining high-achievers
Higher turnover rates among high
achievers and low performers

Page 14:
Performance Appraisal
Techniques
Psychological tests
Games
Oral presentations
Superior appraisal
Subordinate appraisal
Self-assessment
Peer appraisal
Top management appraisal
Client appraisal
Other parties appraisal

Management by Objectives
(MBO)
Process of MBO in 360° appraisal

Behaviourally Anchored
Rating Scale (BARS)
Human Resource Accounting
(HRA)
Cost and contribution of human
resources to the organization

360 Degree Appraisal

Feedback from various stakeholders

Page 15:
Delegation of authority motivates
subordinates to perform tasks with
dedication and commitment
Subordinates feel trusted and
devoted when authority is
delegated to them
Maslow's Theory of Motivation
Abraham Maslow identified five
sets of human needs
Needs are arranged in a hierarchy
of importance
Working Conditions
Provision for better working
conditions motivates employees
Examples include good lighting,
ventilation, sanitation, etc.
Job Security
Guarantee of job security or lack
of fear of dismissal motivates
employees
Job Enrichment
Providing more challenging tasks
and responsibilities motivates
employees
Workers Participation
Inviting employees to be part of
decision-making processes can
motivate them
Other Factors
Providing training, proper job
placement, promotions and
transfers, performance evaluation
and feedback, flexible working
hours, welfare facilities, etc. can
also motivate employees

Page 16:
Needs are not the only determinant of
behavior
Other motivating factors include
experiences, expectations, and
perceptions
Oversimplification of needs in Maslow's
theory
Maslow has provided an
oversimplification of human needs
Herzberg's Two Factor Theory
Developed by Frederick Herzberg
and associates
Job Dissatisfaction Factors
Factors that can cause job
dissatisfaction
Motivational Factors
Factors that can motivate
employees
Hygiene Factors
Factors that, when satisfied,
eliminate dissatisfaction and work
restriction
Motivators
Factors that need to be satisfied
to motivate employees
Challenging Tasks
Assigning challenging tasks can
motivate employees, especially at
the management level
Appreciation and Recognition
Employees expect appreciation
and recognition for their
achievements and contributions
Responsibility
Making employees responsible for
their activities can motivate them
Salaries and Wages
Providing adequate salaries and
wages reduces job dissatisfaction
Career Development
Providing career advancement
opportunities motivates
employees, especially at the
managerial level
Working Conditions
Providing good working conditions
reduces job dissatisfaction
Motivators are job-centered and related
to job content

Page 17:
Need Hierarchy Theory
Managers can study human behavior in
different situations and times
Motivate employees with
monetary and non-monetary
incentives
Physiological needs analysis helps
frame proper wage policies
Provide adequate compensation
to employees
Security needs analysis helps make
subordinates permanent
Give job security and adopt health
and safety measures
Social needs analysis helps form quality
circles and participative systems
Invite suggestions from
subordinates
Esteem needs refer to ego needs and
desire for respect and good opinion
Fulfill through better status,
appreciation from superiors, etc.
Self-actualization needs are at the
highest level of the hierarchy
Few people have these needs,
they drive individuals to
accomplish something special
Examples include challenging
jobs, highest level of promotion,
leadership roles
Ego needs facilitate promotion, better
status, and designations
Self-fulfillment needs enable providing
challenging jobs to dynamic employees

Salient Features of Need

Hierarchy Theory
Wide range of needs
Human needs are multiple and
inter-related
Structure of needs
Arranged into a hierarchy with
lower and higher level needs
Lower level needs must be satisfied
before higher level needs emerge
A satisfied need is not a motivator, it is
the unsatisfied need that motivates

Page 18:
McGregor's X & Y Theory
Theory X: Traditional approach of
managing people
Assumes people are not creative,
dull, and lack rational thinking
Theory Y: Professional approach of
management
Assumes people are creative and
can come up with innovative ideas
Theory X assumptions: people are not
creative, irresponsible, lazy, and love to
hate work
Theory Y assumptions: people are
creative, responsible, active, and prefer
challenging tasks
Herzberg's Two-factor Theory
limitations:
Limited methodology, reliability
questioned, no overall measure of
satisfaction
Ignores situational variables,
assumed relationship between
satisfaction and productivity
No absolute distinction between
the two major factors
Herzberg's theory appreciated for
increased understanding of motivation
in organizations
Job enrichment technique is Herzberg's
contribution, focuses on job content as
a source of motivation
Specific action recommendations for
managers to improve motivational levels
Theory highlights the role of job content
and offers insights into
followers/leaders preferences

Page 19:
Marketing and Human
Resource Management
Human Relations
People prefer to be independent and
want freedom in their work.
They would like to lead and guide
others (Theory Y).
Theory X places emphasis on
centralization of authority.
People are orthodox in nature and
do not want to accept new ideas
(Theory X).
Theory Y places emphasis on
decentralization of authority.
People are ready to accept new
ideas and prefer to change with
the changing situations (Theory Y).
Managers who accept Theory X
assumptions usually direct, control, and
closely supervise people.
Managers who accept Theory Y
assumptions are supportive and easy-
going.
People do not take advantage of
opportunities that come in their way
(Theory X).
People are ambitious and willing to grab
opportunities (Theory Y).
Managers can follow both Theory X and
Theory Y depending on the situation.
Theory X assumes that lower-level
needs like job security dominate
individuals.
Theory Y assumes that higher-level
needs like esteem needs dominate
individuals.
Theory X assumes that people lack self-
motivation and require to be controlled
and closely supervised.
Theory Y assumes that people are self-
directed and prefer self-control.
There is confusion over the use of the
term 'morale'.
Some consider morale and job
satisfaction as the same, while others
make a distinction between the two
terms.
Theory X assumes that people are
selfish and work for their personal
interest only.
Theory Y assumes that people are
selfless and work in the interest of their
organization.
Theory X puts emphasis on autocratic
leadership style.
Theory Y puts emphasis on situational
leadership style.

Page 20:
Marketing and Human
Resource Management
Current Issues in HRM
Analysis is done to find solutions to the
problem.
EQ (Emotional Quotient) involves self-
confidence, risk-taking ability,
resilience, and the ability to handle
tough situations.
Collaborating strategy is used to resolve
conflicts and aims at maximizing the
positive outcome of the conflict.
Some firms utilize EQ to help their
employees determine and measure their
emotional responses to various
situations.
The team members take suitable
actions to overcome the disagreement
or conflicts.
Daniel Goleman's model on Emotional
Intelligence focuses on EI as a wide
array of competencies and skills that
drive leadership performance.
Goleman's model outlines four main
elements: self-awareness, self-
management, social awareness, and
relationship management.
Team building results in teamwork,
improves organizational effectiveness,
motivates employees, develops morale