Recruitment

Recruitment
Recruitment Philosophy of Recruitment Right man on right job at the right time.

 What is Recruitment?Recruitment? Recruitment is the process of searching for prospective employees and stimulating them to apply for the job so that the organization can select the most appropriate people to fill in job needs  It differs from Selection. Recruitment is a positive process - building a roster of potentially qualified applicants, selection is a ³negative´ process of rejecting/ screening / eliminating to search the most suitable one.

 Recruitment policypolicy     Corporate goals ± short/long term Identification of recruitment needs Preferred sources of recruitment Criteria for recruitment Financial implications of recruitment

 Recruitment has two main aimsaims Projection of positive image organization the
organization  Attracting & retaining them

 Recruitment is the first contract that the organization makes with potential/ prospective employeesemployees- A critical function  Recruitment is directly related with a number of activitiesactivities- HR Planning, Employment Planning, Selection, Orientation, Placement, etc.

Human Resource Plans

.
Recruiting goals & Priorities

Number & type of vacancies

Recruiting Philosophy ‡Internal or external sources? ‡Fill vacancies or hire for careers? ‡Commitment to diversity? ‡Marketing orientation to candidates? ‡Ethics in recruiting

‡Attract large numbers of applicants ‡Attract applicants willing to accept offers ‡Fill vacancies quickly ‡Fill vacancies at minimal cost ‡Hire people who perform well ‡Hire people who will stay with the organization ‡Generate positive public relations ³Spillover´

Recruiting choices and behaviors ‡Plans ‡Timing ‡Methods ‡Sources

 Factors Influencing Recruitment

 External  Principles of supply & demand  Labour- market / unemployment Labour Political/ Legal Considerations  Company¶s image  Internal  Recruiting Policy (Internal source)  Local Citizens (MNCs) / Expatriates  Size of the Company  Cost  Growth of the Organization     Less costly + Better knowledge of candidates Enhances employees morale/ commitment Stagnation -

 Internal Recruitment

 No fresh blood  No cross ± fertilization

 External Recruitment

 (+)  Benefits of new skills, new talents and new experience to organizations  Compliance with reservation policy become easy.  Scope for resentment, jealousies and heartburn are avoided.  (-)  It is costly  Chances of creeping in false positive and false negative errors.  Adjustment of new employees to the organizational culture takes longer time.

 Recruitment Process
             

HR Planning Job vacancies (Number, Types etc.) Recruitment Planning Strategy development From where?  How ?  When? Target/ Applicants Population Searching ActivitiesActivitiesSelling, Message, Media Application ± pool (Application Blank) Screening Potential Hires To selection Final Checks Induction

 Methods of Recruitment

 Direct ± Method ± Campus Recruitment  Indirect Method ± Advertisement  Third Party Method- employment agencies- public + private Methodagencies-

 Sources of Recruitment
        


     

  

Newspaper advertising Search firms Employment agencies Employee referrals Networking College recruiting Internal posting Internet Unsolicited Self application- stray application applicationThrough references ± managers, union leaders, professional EmploymentEmployment- exchange Job/Head Hunters Institute/CollegeInstitute/College- Campus Interviews Advertisement Wants ads- Identifies the job, benefits, org. ads Blind Ads- No identification of Org.- To apply in Box AdsOrg. AIDA  A- Attract attention  I- Create interest in the job/org.  D- Create desire to apply  A- action- to apply actionWalkWalk- Ins, Write- ins & Talk- Ins WriteTalkRadio/ T V / Cinema/ Posters/ Cassettes/ Videos, etc. CompetitionsCompetitions- Poaching/ Raiding

Why Recruit on the Internet? Opinion of HR Managers & Headhunters

           

Access to more candidates Improved ability to target specific audience Cost of placing the job postings Speed Absence of middleman Convenience Distribution of postings Quality of candidates Less paperwork Resume management Quality of service Not presently using the Internet

Recruitment in Multinational Organization

 Ethnocentric, where all key positions are filled by

nationals of the parent company. (A typical strategy employed in the earlier stages of a venture)  Polycentric, where host country nationals fill all key positions in the subsidiary.  Geocentric, where the µbest¶ people are recruited regardless of nationality e.g. a national of a country in which neither the parent nor subsidiary is based could also be considered.  Regiocentric, where decisions will be made on a regional basis (the new subsidiary will be based in one country within this region), with due regard to the key factor for success of the product/ service. For example, if local knowledge is paramount, host country nationals will be recruited, if knowledge of established product is the key factor, parent country nationals are likely to be targeted.

Requirement
 Country
 The culture of the country in which the subsidiary is based, in particular its perceived µ toughness¶.  Host government requirements regarding the employment of µforeigners¶ and immigration requirements.

 Individual
     Language competence General international awareness Personal µfit¶ with cultural requirements above Requirements for training Degree of technical competence to do the job

 Organizational considerations
 Considerable costs of international relocation of the individual and her/his family.  High levels of expatriate failure rates discovered to be between 25-40% 25 Opportunities for individuals to develop career paths without international experience.

Selection Processes Selection is a weeding out process- arriving at most suitable processcandidate by process of rejection- essentially a negative rejectionprocess. Selection follows the recruitment of a pool of job applicants. The selection process involves assessing the applicants to decide who will be hired. Selection is the process by which an enterprise chooses from a list of applicants the person or persons who best meet/s the selection criteria for the position available, considering current environmental conditions.

Typical order in which selection devices are used

 Application blank  Screening interview  Tests  More interviews  Reference checks  Conditional offer  Physical examination  Hire

Reject some candidates Reject some candidates Reject some candidates Reject some candidates Reject some candidates Offers rejected by some candidates

 Comprehensive application blank  Stage I ± Screening of Application forms/ Curriculum
Vitae (C.V) ± preliminary application blank ± comprehensive application blank  Stage II- Tests II (a) Preliminary Test  (b) Performance/Simulation tests / written/ screening
 Work Sampling- replica of a job Sampling-

 Assessment- Centers- Line ± Managers, Qualified Assessment- Centers-

Psychologists, Exercises that stimulate real problemsproblemsInterviews, In basket problems solving exercises, G. D. etc.

 b) Psychological Tests ± Supplement not substitute  Intelligence Tests- quick learning, alert, reasoning etc. Tests-

 Aptitude test ± a. clerical , mechanical,  b. Interest test - individual¶s activity ± preference ± career choosing  Personality Tests  Emotional Tests etc.  Situation Tests- performance + personality- for managerial position- problem Testspersonalitypositionsolving

 C) Physical Test  Stage III - Selection & Interviews  Types ::         Preliminary Interviews Final Interviews In depth- interview depthStress Interview Unstructured Interview Structured Interview Group interview Panel interview In Trays

 Interview content
          

Personal qualities Physical health, personality etc. Academic achievements Experience Interpersonal competence (getting along with others) Career orientation (Aspiration, goals Snap judgment Decision on negative impression Pressure to favour Halo effect Strategic faults

 Interview Problem

 Requirements
     Preparation Reception Soliciting information Core interview Freezing discussion

 What we look when finally dealing the selection of a

candidate  A passion for winning  A clear ability to deal  Strong analytical skill  The ability to think innovative  Positive orientation towards work  The ability to work collaboration with others  A drive for continuous self development & a genuine interact in the development of others  Decisiveness & assertiveness Stage IV Checking the reference Checking the antecedents Medical ± check up

   

Placement & Orientation
 Placement means posting on the job  Probation ± (a) job fit (b) job mismatch (c ) skill
deficiency

 Orientation is the personnel activity which

introduces new employees to the enterprise and to their tasks, superiors, and work groups.  Welcome  Introduction  Integration
    

Removing fear Creating good impression Providing information Socialization Adjustment

(c ) relieves anxiety ± makes him feel at home - Rapport with the environment - Lasting impression

 Induction programmes
The HR department may initiate the following steps while organizing the induction programme:
 Welcome to the organization  Explain about the company / History Philosophy  Show the location/department where the new recruit will work/ products/ services  Give the company¶s manual to the new recruit

 Provide details about various work groups and the extent of unionism within the company  Give details about pay, benefits, holidays, leave, etc. Emphasis on the importance of attendance or punctuality  Explain about future training opportunities and career prospect.  Clarify doubts, by encouraging the employee to come out with questions  Take the employee on a guided tour of buildings, facilities, etc. Hand him over to his supervisor.  Safely meaning

INTERNAL MOBILITY
contains following internal processes like (i) placement (ii) promotion, (iii) demotion (iv) transfer (v) separation  Placement : Placing the new employee to suitable jobsjobstrying him on different jobs, job enlargement, job enrichment, pooled job, independent job, etc.  Promotion : Promotion is the upward assignment/ movement of an individual in an organisation¶s hierarchyhierarchy- more responsibility, enhanced status & increased income. Promotion is different than upgradation of a post. In upgradation only increase in wages takes place.  Why promotion?
     Recognition of a job well done. Retain/Reward an employee Org./ Individual effectiveness JobJob- satisfaction Loyalty

 It is internal movement within the organisation. It

 PROMOTION POLICY
    Ratio of Internal promotion to External recruitment Finalizing promotional channel / LOP Relationship of any disciplinary action to promotion Determining the criteria for promotion- Elibility Periodicity, Appraisal, promotionInterview etc. Seniority Merit Merit vs. Seniority Seniority- cumSeniority- cum-merit Time Scale Promotion (based on seniority) Merit Promotion (based on merit) Merit-cumMerit-cum-Seniority (Striking a balance between merit & Seniority) Adhoc promotions or Expediency promotions Need based

 Criteria for PromotionPromotion        

 Types of Promotions

 Advantages
   

Satisfaction & Prestige Recognition & Incentive to better employees Reduces turnover Motivates people

 Disadvantages

 In breeding/ stagnation  Peter¶s Principle ³Level of Incompetence´Incompetence´-

Demotion
 Why Demotion?
 Adverse business conditions  After accepting promotion an employee request to revert to his old job due to various reasons  A mismatch between promotee¶s ability/ interest and the demand of the new job  Demotion punishment

 Demotion policy
     Clear, reasonable & transparent rules for demotion Well communicated Fair, firm & Consistent Periodical Review Transfer: Transfer: Transfer is lateral movement. It is change in job assignmentassignmentMay involve promotion or demotion or administrative requirement or job requirement ± no reduction in salary, no change in status ± May be reward, May be punishment.  There are two types of transfers (1) Personal transfer or request (2) Company¶s driven transfer

Transfer
 Personal Transfer : Individual driven transfers are those occasioned by the characteristics and desires of the employee, and are primarily in his/her interest. The reasons for this could be many.  To correct erroneous placement  To relieve the monotony of a job, acquire better working conditions, and join
friends.  To provide an outlet from blind alley jobs  To avoid interpersonal conflicts  To escape an unpleasant work situation

       

To reduce commuting distance To pursue educational opportunities, self activism To accommodate a dual career problem In the interest of age/health, education of children, housing difficulties, and to joint immobile dependents. A search to creating opportunities To avail of training elsewhere, to facilitate later advancement or promotion Better opportunities for advancement Company¶s Driven Transfers A company may initiate transfers for the following reasons:  Need for temporary adjustment for leave and absence etc.  Fluctuation in work requirement  Better utility of employee  Versatility transfer or job rotation  Shift transfer  Remedial transfer to correct faulty placement  On compassionate ground  Panel transfer- punishment/reward transfer-

 Employees generally resist Co. driven transfer  Suspect victimization by management  Unwilling to move to unknown place  Painful to leave social groups, friends & relatives  Develops interests in work, place etc. and dislikes leaving them  Develop ³Craft consciousness´ and leaving becomes painful  Transfer policy  Transfer is a costly affair. There are number of transfer benefits ±
advanced pay, disturbance allowance, packing- allowance, transport packingallowance, tranist leave etc.  It is risky, also full of IR potential .  Policy should answer the following:
 Transparency- circumstances in which transfer is made Transparency Basis on which transfer is made  Principle followed in transfer- seniority, juniority, skill attitude required on transferthe job  Details about future job to which transfer is made  Assurance about perks and benefits

 Separation : Separation occurs
because of variety of reasons.
 Legal separation of Redundancy separation  Lay off  Retrenchment  Golden handshake  Outplacement  Natural wastage  Death  Retirement  Prolonged sickness  Voluntary separation  Resignation, due to domestic problems, job
hopping

Performance Management

by Prof. B.D. Singh IMT

 Mind boggling changes, technological revolution, fierce

competition. competition. Perform or Perish ,survival of the fittest -survival instinct -And like the story of the two men on a safari, in order to survive you will have to die trying. While trying. walking through the jungle, they came upon a hungry tiger, when one of them started putting on his running shoes. ³How shoes. is this going to help? We can¶t outrun the tiger.´ asked the tiger. other. other. The first man replied: ´I don¶t have to outrun the tiger, I replied: only have to outrun you.´ you.

 Organizations redefining their strategies-- performance strategies--

appraisal to performance management to performance culture in which every member of the organization knows the goals & consistently make efforts to achieves high performance



Behaviorism in performance
 Performance=skill + will  Or
Individual performance = Ability x Motivation x Organizational Support + or ± Chance Factors?  Iccha (desire, motivation), Gyan, (knowledge) (Know how), Kriya, (action, to achievement).  Work is sublime²to do nothing is to be nothing²karma sublime² nothing² is dharma² dharma of each person to contribute to the dharma² larger society in excess of what she consumes out of its resources. We can work to destroy ourselves, or to improve our lot. -Understand the intrinsic meaning of work can guide us to better ways of controlling and directing this powerhouse of human energy.

 ³Work- as ± life´ ³Work Economic : Gainful, productive work performed to meet      

the economic needs of a person or her family. Cultural : Functions, such as the rituals of birth, marriage and death, death, performed as moral duty in the course of one¶s various life- passages. lifePsychosocial : Interpersonal and interfamilial interactions in one¶s role as member of a social unit. Physical : All movements from birth to death that the human body engages in. Peter Drucker and three stonecutter . Will to work, to achieve, to contribute, to seek recognition Help enhance self- esteem of the worker. self-

What is performance±Behavior+ Outcome ± performance± achievement, accomplishment at work ±being, (µChance¶, µfavors the prepared mind¶) ± doing (µIdeas are funny little things. They won¶t work unless you do.) relating (role network ± vertical, horizontal or otherwise.) input² input²throughput ±output (exceeds the value of output?)± output?)±feedback  Output or result dimension;  Input dimension;  Time dimensions;  Focus dimension;  Quality dimension; and  Cost dimension.

 Performance means both behavior & result,

behavior emanates the performance  performance management is creating culture in which organizational & individual learning are a continuous process ± integration of learning & work
 Normal vs excellent performance - Better than the bestbest- outstanding/ extraordinary performance-- Bench performance-Marking,record breaking,  Excellence is not a skill but an attitude/culture  The Geeta ± Yogah, Karam su kaushalam

 The road to excellence is always under
construction. It is necessary to always surpass oneself and this is a lifelong occupation.  You got to be the first or the best or different.  When better is possible, good is not good enough. Target for the day: 1% improvement.

 Excellence is not a destination- it is an endless destination-

road± road± excellence seeker do not follow the laid down path, they break new paths & leave their trail behind-they accept the challenge so that behindthey may feel the exhilaration  Churchil- ³excellence seekers never, never quit, Churchilthey walk on with optimism as their hope helps them visualize the invisible, touch the intangible & materialize the impossible´  Excellence is not through chance /freak  Luck is what happens when preparation meets opportunity PMS encourages individuals to anticipate opportunity & prepare to grab it.

³Chance favors the prepared mind´ ±Fortune favors the brave  Bench marking± up gradation to match with the best marking±  Fighting fit with six sigma
 Jack Welch¶s directive that his GE managers could wriggle out of Six Sigma training at the cost of losing their promotion only goes to show how important it is to enforce this practice from the top. top.  The people involved in Six Sigma execution are  Master black belts who are well versed in the rules of the game,  Black belts (technically oriented individuals involved in the process
of organizational change and development)  Green belts (employees who lead six sigma project teams). teams).

Six Sigma Fundas
create more efficient processes or refine existing processes  Under the prescribed specifications, there cannot be more than 3, 4 defects (defined as anything that doesn¶t add value to the end customer), per million opportunities.  You can apply it to anything, from making a movie to manufacturing truck tyres  It needs the unstinted support of organizational leaders, and emphasizes teamwork and lifelong evolution of practices and processes.

 Strong customer-oriented approach that relies on data to customer-

 Excellence happens through unleashing human
potential which is infinite- culture of excellence infinite Peter And Waterman ±In search of Excellence (1982) ± 1982)  care for customer,  craze for creativity  concern for people  By investing in HR, your company will grow and succeed. succeed. ³the ability to learn faster than your competitor may be the only sustainable competitive advantage´

Performance Management?

 PfM is another way of envisioning the totality of a manager¶s

function. It views the managerial function holistically  Performance management is the process of creating a work environment of setting in which people are enabled to the best of their abilities.  In a traditional system, performance tends to be evaluated and looked at only in the short run and for immediate results. Organisations need to understand that for sustained performance, it has to nurture a creative, motivated and committed workforce, and for that employee¶s performance has to be planned, analysed, developed and appraised continuously rather than being constricted to annual reviews and evaluations.

 P M S is concerned with creating a culture in which individual

learning & development are continuous process  It provide means for integration or learning and work so that every one learns form success & challenges inherent in day to day activities

 The desire to enhance performance is

making ever greater demands on the knowledge & skill of the work force & on people, who carry a much greater responsibility for their own performance. performance.  It is a holistic, systematic & continues management function.  It is about performance & not just apprising. apprising. Performance & result important but people equally important. important.  High performing people are critical for high performing organization

 Performance Appraisal systems
             Focus is on performance appraisal and generation of ratings Emphasis is on relative evaluation of individuals. Annual exercise-normally though periodic evaluations are made. exerciseEmphasis is on ratings and evaluation. Rewards and recognition of good performance is an important component. Designed and monitored by the HR Department. Ownership is mostly with the HR department. KPAs & KRAs are used for bringing in objectivity. Developmental needs are identified at the end of the year on the basis of the appraisal of competency gaps. There are review mechanisms to ensure objectivity in ratings It is a system with deadlines, meetings, input and output and a format. Format driven with emphasis on the process. Linked to promotions, rewards, training and development interventions and placements.

 Performance Management systems

 Focus is on performance management.  Emphasis is on performance improvements of individuals, teams and the organization.  Continuous process with quarterly performance review discussions.  Emphasis is on performance planning, analysis, review, development and improvements.  Performance rewarding may or may not be an integral part.  Designed by HR and Line departments but monitored by the respective departments themselves.  Ownership is with line managers, HR facilitates its implementation KPAs or KRAs are used as planning mechanisms.  Developmental needs are identified in the basis of the competency requirements for the coming year.  There are review mechanisms essentially to bring performance improvements  It is a system with deadlines, meetings, input, output and a format.  Process driven with emphasis on the format as an aid.  Linked to performance improvements and through them to other HR decisions as and when necessary.

 What is New?
 Move away from appraisals.  Move away from numbers to qualitative assessment  Continuous innovation. Process is more important than formats  Emphasize learning and development, empowerment and growth and problem. Solving more than assessment.  Use multi ratter assessment as a supplements  Synergies with other systems  Encourage employees to own their own performance management.  Follow up actions must be taken and taken on time. It may be training or job rotation or removing blocks or any other things.

  

PMS is change in managerial style of doing work. work. It is creating & nurturing performing culture. culture. The performance culture has to be built into the management & the enterprise. enterprise. Great workplaces with high performance cultures tend to foster growth and feed an individual¶s need for learning and development. Several successful companies development. have shown that high performance culture is the sine qua non for attaining sustainable competitive advantage. advantage.

Frame work of Performance Management.
Conduct Future Mapping Create Transformational Vision, Mission and Core Values Craft business strategy linked to Vision


-

Annual corporate objective Annual corporate strategy-& the other details cascade down --use of balance strategy--use score card in Moser Baer Performance planning Task analysis and/or activity analysis; Key performance areas (KPAs); Key result areas (KRAs); Task & target identifications; Activity plans/action plans; and Goal-setting exercises. Goal-

If the following questions can be answered positively after the exercise, one could say that KPAs have been well identified: 1. Do the KPAs and targets emphasize/ indicate what the manager (appraise) is expected to do by himself (rather than what his department, subordinates etc, are expected to do)? 2. Together, do they cover a large part of his job and include all significant contributions expected from his role? 3. Do they indicate the priority areas of work for the appraise during the year?

4. If all KPAs are well done, can the appraise be labeled as a good performer? 5. Are the targets set challenging and stretch the capabilities of the appraise moderately rather than being routine? 6. Are they comprehensive? 7. Do they specify the standards of performance expected from the appraise? 8. Do they take into consideration realistically the conditions under which the appraise is expected to function during the year? 9. Do they satisfy both the appraise and appraiser? 10. Has adequate time been spent on the process of identifying KPAs and gaining role clarity?

2.Goals ² directions- if you do not know where you are directionsgoing, any road will be OK± OK±  Goal setting is a process intended to increase efficiency & effectiveness by specifying the desired outcomes towards which individuals, teams & organisation should work  Goals includes deadline, budget, and other standards of behaviour and performance  Goals are quantifiable , consistent, precise, challenging, measurable, achievable, shared, time related, team work oriented.  SMART
     S ± Simple M ± Measurable A ± Agreed R ± Realistic T ± Time related

3. Performance agreement -- performance agreements set the direction & form the basis of measurement, feedback, assessment in the performance management system - Defines work to be done - The attributes required (skill +knowledge + attitude)attitude)- competencies required - Identified measures use to monitor review and access - Corporate core values required

4.

Performance Measures ± ³If you can not measure you cannot improve´ ± What is not measured is not worth doing± doing± Simple Measurements (Production, Quality, Cost, Delivery, Safety etc .± profitability gets measured onon-return on investment -return on sale -return on total capital -return on book quality -net income by total assets Performance measures provide evidence of whether or not the intended result has been achieved & extend to which the job ± holder has produced the result. result. Performance measure becomes the basis of generating feedback information. information.

 Bench marking ± ³ if you know your self & your
enemy well, you can win thousands of wars´  ³Benchmarking is a tool to help you improve your
business process. Any business process can be benchmarked´
 ³Benchmarking is the process of identifying, understanding, and adapting outstanding practices from organisations anywhere in the world to help your organisations improve its performance´  ³Benchmarking is a highly respected practice in the business world. It is an activity that looks outward operations against those goals´

-performance appraisal for individual & teamteam- each organisation have its ownownMoser bear has one -balance score card for organization team and individual  Financial performance  Customers satisfaction  Internal business processes  Employees learning and growth

The Balanced Scorecard Provides a Framework to
0

Translate a Strategy into Operational Terms Vision & corporate Strategy
Financial ‡Objective 1 To succeed financially, how should we appear to our shareholders? ‡Measures ‡Targets ‡Initiatives

0

2

To achieve our vision, how should we appear to our customer?

Customer ‡Objectives ‡Measures ‡Targets ‡Initiatives Internal Business Process ‡Objectives ‡Measures ‡Targets ‡Initiatives

3 To satisfy our shareholders and customers, what business processes must we excel at?

The weights assigned to different performance measures in the balanced scorecard as used by 60 large companies surveyed by Towers Perrin New York, is shown below:below:-

Innovation/ learning results 5%

Developmental result 9%
Internal business results 12% Financial results 55% Customer focus 19%

5.

 

Competency± Competency± Competency Mapping, Competency Profiling, Competency Matching and Job Matching- at two levels behavioral & Matchingtechnical. technical. Competence is skill based attributesattributesmeasures what, what people can do.? do. Competency is behavior based attributes, applies on performance, measures, how, how they do it ± Behavior or set of behaviors' that describe excellent performance in particular work context± Applied knowledge and skill± context± skill± Behavioral application of knowledge that produce results

Competency Model
performance

Informance & understanding needed to fulfill responsibilities
knowledge

skill
aptitude

Acquired ability or experience needed to fulfill responsibilities Natural ability that prepares a person to fulfill responsibilities Way of thinking or Behavior needed to fulfill responsibilities

attitude attitude

 Competency caused flow chart
Input
Personnel attributes & skills

Action

Outcome

Behavior

Job performance

Why Strategies Fail

8%
17%

35%

40%

75% fail because of people- lack of competency and reluctance reluctance to change.
µPeople don¶t resist change, they resist change without being

changed¶

 In a study conducted by Mc Kensey in 340 organizations

worldwide on ³Why Strategy Fails´, only 17 percent of ³Why Fails´, strategic failures were due to bad strategy and 8 percent due to other reasons such as µSeptember 11, War natural calamity, etc. the remaining 75 percent were due to lack of competency of the people who implemented the strategy; precisely 40 percent due to lack of knowledge and skills and the other 35 percent due to lack of right attitude, i.e. willingness to change, managing feeling and emotions, etc.  People who excel at their jobs demonstrate behavior that distinguish them from their peers. Directing these behaviors are ³Competencies´ which we define as underlying personal characteristics that differentiate outstanding performance from average performance in a given job, role, organization or culture.

 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15.

List of managerial competencies Planning ability Organizing ability Co-ordination CoSupervision Leadership & dynamism Initiative Resourcefulness (oral & written) Creativity & Imaginativeness Development of subordinates Contribution to team spirit Analytical abilities Delegation Public relations Sociability Self-confidence Self-

16. Decision16. Decision-making 17. 17. Cooperativeness 18. 18. Flexibility 19. Problem19. Problem-solving 20. 20. Risk ±taking 21. 21. Ability to motivate subordinates 22. 22. Conflict management 23. 23. Communication skills 24. 24. Perseverance 25. 25. Hard work 26. 26. Integrity 27. 27. Drive 28. 28. Empathy 29. 29. Assertiveness 30. 30. Originality 31. 31. Data management

  1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 

Threshold competency ± minimum, essential for every manager but that does not distinguish Differentiating competency ± superior from average performers Personal drive (achievement motivation) Analytical power Strategic thinking Creative thinking (ability to innovate) Divisiveness Commercial judgment Decision making Team management & leadership Interpersonal relationships Ability to communicate Ability to adopt & cope with changes & pressure Impact on result Creativity & innovativeness± Creativity is more than just inspiration. It is innovativeness± inspiration. perspiration and hard work too« many of us believe that creativity is a gift too« given to only chosen few. Nothing can be further from the truth. All of us are few. truth. creative in our own little way. Creativity is a route to self-fulfillment and way. selfsatisfaction. satisfaction.

Competency for high achiever

COMPETENCY MAPPING ±A TOOL FOR OPTIMIZING THE HUMAN CAPITAL

 The term ³Human Capital´ describes the economic value of the     
organization's knowledge, skill, and capabilities. capabilities. Human Capital is intangible and hence cannot be managed the way organizations manage jobs, products, technology etc. etc. ³Can a round peg fit a square hole? So can¶t a wrong employee in a right organization´ The organization will have to find a correct person who will fulfill its expectations or will have to chisel and shape up the existing employee to fit its expectations. expectations. ³Know the dimensions of the square hole And buy a square peg Or chisel the round peg to fit.´ fit. ³Successful Companies of the 21st Century will be those who do the best job of capturing storing and leveraging what their employees know´

 Thomas Stewart in his book ³Intellectual Capital: The

New Wealth of Organisation´ says that Intellectual Capital is the intellectual material, knowledge information, intellectual property, and experiences that can be used to create wealth.  The term µintellectual Capital¶ represents the awareness that information is a factor of production, as economists would describe it, in the same category with land, labour, capital and energy. In the early mid 1990s there was an increasing awareness in the business community that knowledge was an important organizational resource that needed to be nurtured, sustained, and, it possible, accounted

Monitoring & Mentoring performance---performance---monitoring employees performance & mentoring their development is the heart & soul of performance management. management. Performance management aims at sustained effort for ± a. performance improvement b. enhancement of managers competencies c. organisational learning - differentiating leadership with leader A leader is one who knows the way, who shows the way, who goes the way -situational leadership (Directing, Coaching, Supporting, Delegating) - Introducing movers of human behaviors ± coaching & mentoring ± continuous search for drivers of performance & movers of human behavior ± creating achievers - enriching performance through diversity- creating building trust- encouraging change diversitytrustmeasuring results -Mid term review. review. How can managers get extra ordinary performance from ordinary people - by effectively & systematically managing performance ± three basics principles of high performance-create trust, encourage performancechange, measure the performance, -----(reinforce and reward) -----(reinforce

5.

Some Monitoring Practices
 Manager meets employees regularly, on the spot, during      
work process, facilitate change . Praises good performance Sharing feeling than passing remarks Demonstrating & demanding integrity in behavior & Some monitoring intent Exacibility & availability to the employees Correcting faults then condemning Nurturing effective working through continuous improvement.

Counseling/coaching/mentoring behaviors

Pygmalion effect

6.
7.

Performance Appraisal ANNUAL Stock taking /Performance Review Discussion and feedback- Performance review- letting employee know where he standsfeedbackreviewstandsprocess of analysis of achievement and deficiency- providing opportunity deficiencyfor in-depth exploration for introspection with the mentor - reinforcement inin case of deficiency, (T & D, counseling, coaching, mentoring etc.), etc. appropriate reward in case of target fulfillment

Objectives ±
1. 2. 3. 4. 5. 6. Helping him to realize his potential as a manager or a leader etc. etc. Helping him to understand himself ±his strengths and his weakness. weakness. Providing him an opportunity to acquire more insight into his behaviour and analyze the dynamics of such behaviour. behaviour. Helping him to have better understanding of the environment. environment. Increasing his personal and inter-personal effectiveness by giving him interfeedback about his behaviour and assisting him in analysing his interinterpersonal competence. competence. Encouraging him to set goals for further improvement. improvement.

7.

Encouraging him to set goals for further improvement. improvement. 8. Creating an empathic atmosphere to share and discuss his tensions, conflicts, concerns and problems. problems. 9. Helping him to develop various action plans for further improvement. improvement. 10. Helping him to review in a non-threatening way his progress in nonachieving various objectives. objectives.

Condition for performance review discussion  General climate of openness and mutuality  General helpful and empathic attitude of management  Sense of uninhibited participation by the subordinates in the
    Methods of review
performance review process Dialogic relationship in goal setting and performance review Focus on work-oriented behavior workFocus on work-related problems and difficulties workAvoidance of discussion on rewards and punishment

-tell & sell, tell & listen, problem solving

7. Feedback- Feedback is transmitting information from Feedbackone part of system to another part to do corrective action or initiate new action. Self feedback is highly action. desirable feature of PMS but there is always need for managers, colloquies, inter and external customers to provide feedbacks based on their observation (360 feedback). feedback). Feedback is considered positive because it is developmental ± build feedback in to the job on the actual event describe do not judge refer specific behavior be positive suggest correction

1. 2. 3. 4. 5. 6.

8. Conditions for effective feedback  Descriptive and not evaluative  Focused on the behaviour of the person and not on the person himself  Data based and specific and not impressionistic  Reinforces positive new behaviour  Suggestive and not prescriptive  Continuous  Mostly personal, giving data from one¶s own experience  Need-based and solicited Need Intended to help  Focused on modifiable behaviour  Satisfies needs of both the feedback given and one who receives feedback  Checked and verified  Well timed  Contributes to mutuality and building up relationship

Unhelpful and helpful response of the appraisal 1. Unhelpful  Not encouraging creative acts  Passive listening  Lack of verbal response  Critical
 Criticizing  Pointing inconsistencies  Repeated mention of weaknesses  Belittling  Reprimanding Directive  Prescribing  Ordering  Threatening  Giving no options  Pointing out only one acceptable way  Quoting rules and regulations

2. Helpful Appraisal Empathic Leveling  Rapport building  Identifying feelings Supportive  Recognizing  Communicating  Availability  Committing support Trusting Exploring  Questions  Reflecting  Sharing  Probing Closing  Summarizing  Concluding  Contracting for follow-up and help follow-

 Performance Reward, Development &
Recognition The outcome of performance appraisal should be linked to: 1. Performance linked pay. 2. Development opportunities. 3. Challenging assignments in various task forces in the company.

8. Counseling and Coaching & mentoring ±

directing people to do has always produce inferior results compare to inspiring people to do an excel. While excel. counseling helps people to come out of helplessness, coaching & mentoring inspires people to an excel Counseling is helping people to help themselves to achieve what they want totocomplete acceptance, empathy, listening, sensitivity, impartiality, helping to explore his own confusion, working out improvement plan along with him. him.

Coaching is to assist others to make changes in their work lives or to adjust to changes with view to improving the performanceperformance-not teaching, not instructing, not training it is on the job to help people develop their skills and level of competence, making people aware of their deficiency and encouraging them to improveimprove- coaching is a process were by one people helps another to unlock their natural ability to perform learn an achieveachieveto increase awareness of the factor which deterring performance,

to increase their scene of self responsibility and ownership of their performance, to self coaching to identifying & remove internal barriers of achievement A mentor is experienced and trusted advisor ± combine four roles- coach, rolesteacher, sponsor (adding new challenges), devils advocate (unusual way of looking at things)things)role model

Conclusion
 As Sherman Roberts of Harvard university
puts it: ³The best way to run an it: organization is also the best way to treat people´  In the words of Edward Gibbons, an English historian, ³The winds and waves are always on the side of the ablest navigator. navigator.´

COMPENSATION & REWARD

 C/R possibly the most critical & strategic area of HRM  Employers perspective , Employees perspective,

Concept of compensation,

 An organization exists to accomplish specific goals &
objectives hence, hires employees. The individuals employees. hired by the organization have their own needs. One is needs. for money, which enables them to purchase a wide variety of goods & services available in the marketplace. marketplace. Hence there is a basis for an exchange: the employee offers specific behaviors desired by the organization to meet its goals and objectives in return for money, goods, & / or services. services.  Sale of hands ± brains ± soul??

 Compensation emphasizes on fair- day¶s pay for fair-

fair day¶s work. work.  Purely extrinsic ± A quid pro quo contract All forms of financial returns and tangible services and benefits employees receive as part of employment relationshiprelationship Cash- compensation ±Base Pay, D. A. Short Term CashIncentives, Long Term Incentives (Equity Incentives)  Benefits ± Income Protection, Allowance, work/Lifework/LifeProtecting ones  Bonuses (attendance, performance based etc)  Shifts, Supplements. Supplements.  Danger money/ Dirt money  Immediate focus  Trade ± off between pay & efforts  Monetary contract

CONCEPT OF REWARD

 Composite of all organizational mechanisms,

and strategies used to finally acknowledge Employees¶ behavior & performance. It includes all forms of compensation, specially nonnonmonetary, awards & recognition, training opportunities, promotions, assignments, working conditions etc.
 Located more in behavioral science  It part of broader strategies of enhancing loyalty, motivation & satisfaction  Encompasses career opportunities, job- securities, joblearning opportunities, achievement, recognition

 Economic incentives are becoming rights rather than rewards´. So we must acknowledge that insufficient monetary rewards for performance can not be rewards for performance can not be compensated by good human relations.  If talent is an organization¶s most important asset, maximizing that talent is its most critical challenge. The challenge lies in issues relating to developing the skills to motivate people to perform at their best, making work meaningful and rewarding, fostering commitment & innovation, retaining top performers & improving their job performance today & giving them the edge they need to become the leader of tomorrow.  More prospective in focus  To unleash latent potentials  To create sustained commitment  Psychological contract  ³Personal recognition can be more motivational than money´ asserts Bob Nelson, author of 1001 Ways to Reward Employees (Workman Publishing, 1994). ³You can obtain from your employees any type of performance or behaviour you desire simply by making use of positive reinforcement.

ADVANTAGES OF C & R SYSTEM ± A MANAGEMENT PERSPECTIVE

           

Attracting & retaining good performer Improving Individual & Corporate Performance Improving Motivation Clarifying job- role & duties jobImproving communication Reinforcing management control Identifying developmental opportunities Importance that job deserves (Status, Skill, Responsibility) Encouraging loyalty to the Organization Controlling cost Complying Govt.¶s Policies/ Laws Maintaining Co.¶s Image

ORGANISATION¶S COMPENSATION POLICY

 Business Strategy ±
 To attract, retain, motivate the Right man  What org. can afford  What talent will be required to meet org. strategic goals

 The economy- macro level factors like global economy-

trends, national wage policies- minimum, fair & policiesliving wages, legal provisions
 Employer employee are having different perspective of compensation.  Compensation & reward different concepts  Macro National level compensation policy  Industry ( micro level compensation policy)

PAY POLICY 1. Motivational strategies Internal Consistency ± Adams equity theory of motivation  Job evaluation ± to find the worth of the job 2. External Parity  Labour Market/Ongoing rates  Capacity to pay ± 3. Organization strategy

 Wage structure  Wage/job family
       

Managerial Technical/supervisory Administrative/clerical (staff) ManualManual- Highly skilled, skilled, semi skilled, unskilled Basic pay Base pay (fixed pay+ variable pay) Dearness allowance Other allowances & Incentives like bonus etc.

 Components of wage structures

Incentive Scheme  Schemes where the workers¶ earnings vary in the same proportion as output  Schemes where earnings vary less proportionately than output  Schemes where earnings vary proportionately more than output  Schemes where earnings differ at different levels of output.

 This points to designing appropriate reward programmes

linked to performance. performance. Total reward systemsystem Total Reward System has both monitory and nonnonmonitory components, comprising incentives such as basebase- pay, variable pay, benefits, an exciting and challenging work environment the opportunity to work with excellent colleagues and leaders and industrial growth opportunity- the concept has been derived from opportunityHerzberg¶s theory of motivation- Hygiene factors + motivationmotivators
 Direct financial- Base-pay, variable ±pay, incentives, stock financial- Baseoptions, Bonus, Merit increases, Spot-rewards, deferredSpotdeferredpayment etc. etc.  Indirect-financial- Benefits, Perquisites, non-cash-recognition, Indirect-financialnon-cashsabbaticals, Q.W .L-/Clubs, Co¶s paid holidays, children schooling, home-office, career-counseling etc. homecareeretc.

Profit is the most important criteria  Scheme may use cash, or share  Gain sharing  Share office scheme  Employees share ownership plan  Higher software system offers a platinum stock option ± no real share transfer, employers receives a cash payment equivalent to the rise in value of national stock  Incentive «««Non cash awards «««Non  Skill based pay allows employees to program through a range of grade  Broadband pay

Compensation system

Indirect compensation

Direct compensation

Protection programs Pay for time not worked Services & Perquisites ‡Medical insurance ‡Vacations ‡Recreational facilities ‡Care ‡Life insurance ‡Holidays ‡Financial planning ‡Disability income ‡Sick leave ‡Low ±cost or free meals ‡Pension social security ‡Jury duty

Base pay

Merit pay

Salary

Incentive pay ‡Bonus ‡Commission ‡Piece rate ‡Profit sharing ‡Stock option ‡Shift differential

Wage

Deferred Pay ‡Savings plan ‡Stock purchase ‡Annuity

Legal aspect of Compensation
     Minimum wages act Payment of wages act Equal remuneration act Payment of bonus act Income tax act

 Principle of compensation
Equitable compensation systems
     Internal equity ± through job evaluation methods External parity ± market survey methods Job pricing Pay ranges Broad banding

Wage structure
Wage Differential  Fair Wages Committee  The degree of skill  The strain of work  The experience involved  The training required  The responsibilities undertaken  The mental & physical requirements  The disagreeableness of the task  The hazard attendant on the work, and  The fatigue involved. Wage component  Basic/ DA + variable pay + fringe benefits

Standard Pay Package
 Government Department
     Basic DA : 100% to 50% neutralization of dearness HRA : different for different category of cities Delhi 30% of basic CCA : According to city (A class, B Class, C class Conveyance : Different for different slabs of pay

 Public sector undertakings
       Basic : Rs 4/- per point of price indices 4/DA : According to city (A class, B Class, C class Conveyance : Different for different slabs of pay HRA: 30%, 20 % & 15% of A, B, C category of citied Tiffin Allowance : Rs 30 /- per day /Education Allowance : Rs. 125/- per child, subject to maximum of two 125/Electricity Water Allowance; Rs. 150/150/-

 General
           

Annual Bonus or ex-gratia exLTC/ LLTC Medical ± self, wife, children, parents, unmarried sister, widow sister Leave Encashment Basic (fixed + variable ) HRA 35 % of basic 45% Education & Hotel Allowance CCA Servant Wages Cost of living Allowance Special pay Annual  Bonus  Executive commission  Medical  LTC

 Private sector

 Note  Statutory Elements:

 PF (12%- 12%) (12% Pension- as per scheme (legal scheme or developed by company) Pension Statutory Bonus

VARIABLE PAY SCHEME/ PAYMENT BY RESULT

Work Wages for Fair Day¶s work, for More Workwage incentive  Linking pay to performance  Variable pay

 What is performance related pay?
 ³Financially measurable reward to an individual which is linked directly to individual team, or co¶s performance.´  PRP links pay progression to performance and/or comp rating  Merit Pay individual incentive bonuses individual discretionary bonuses, team / to prefer bonuses, skilled based payment etc.  Merit pay ± basic salary increase by «.. Performance alone (i) incremental system (ii) percentage increase  Individual bonuses ± Senior executives, sales managers production managers - reward for performance subject to assessment after the event.  Team /group bonus- designed for group performance bonus CO wide scheme ± separate, identifiable reward to all or some, depending on co¶s performance

Types of Variable Pay Plans

Individual ‡Piece rate ‡Sales commissions ‡Bonuses ‡Special recognitions ‡(trips, merchandise) ‡Safety awards ‡Attendance bonuses

Group/ Team ‡ Gain sharing ‡Quality improvement ‡Cost reduction

Organization- wide ‡Profit sharing ‡Employee stock options ‡Executive stock options ‡Deferred compensation

Factors for successful Variable Pay Plans
Linked to Organizational objectives Results in Desired behaviors Variable Pay Clear Understandable Plan details
Performance Results Linked To payouts

Sufficient Financial Resources Available

Consistent With organization Culture Clearly Separated From base pay

Clearly communicated

Measurable performance

Current Updated plans

Broad Classification of Fringe BenefitsBenefits-Different Perspective
 Broad Classification of Fringe Benefits- different Benefitsperspective  Legally required ± (a) Old-age, disability, health insurance Old(b) Unemployment compensation, (c) State Sickness benefits  Retirement Benefits
 Pension  Profit Sharing  Stock Bonus

    

Life Insurance Medical Paid rest period Payment for time not worked Miscellaneous + trends

             

Discounts on goods/services Employees¶ Education Employees meals Child care Elder care Early retirement windows ± golden offerings Consulting Services EAP Personal Services ± Picnic, Club Job related services help employees to prefer their jobs better Subsidized transport Food service Education Family friendly benefits

Some popular forms of nonnonmonetary rewards
Treats KnickKnickKnacks Awards Environm Social ent Acknowledge ment
‡ Renovatio n ‡ Music ‡ Flexible hours ‡ E-mail ‡ Informal recognition ‡ Recognition at office getgettogether ‡ Friendly greetings ‡ Solicitation of advice/suggesti on ‡ Membership of clubs ‡ Company facilities for personal

Tokens

On-the ± Onjob Rewards
‡ More responsibilit y ‡ Job rotation ‡ Special assignment s ‡ Training ‡ Representin g the company at public fora

‡Free

‡Decorati ve lunche ‡Co. s ‡Festiv Watches ‡Tiepins al bashe ‡Brooche s s ‡Coffe ‡Diaries e ‡Calenda breaks rs ‡Picnic ‡ Wallets s ‡ T-Shirts ‡Dinne r with the

‡ Trophies ‡ Plaques ‡ Certificates ‡ Scrolls ‡ Letters of appreciation

‡ Movie tickets ‡ Vacation trips ‡ Coupon s redeem able at stores ‡ Early timetime-offs ‡ Anniver

Executive Compensation

Perquisites

Supplemental Benefits

Long- Term Incentives

Annual Bonuses

Executive Salaries

Common Executive Perks

Transportation ‡ Company car or car allowance ‡First class air travel ‡Company airplane usage

Financial/Legal ‡Financial planning ‡Tax planning/ tax preparation ‡No or low interest loans ‡Legal counseling

Memberships ‡ Country club ‡Health club ‡Luncheon club

Arguments in the Executive Pay debate
Criticisms  Boards of Directors give sizable rewards to both high & low performing executives  Executives should not get rewards & bonuses for laying off much of the workforce  Total compensation packages, especially with the ³golden parachutes´ for failure, are out of line.  Many people contribute to a company¶s success, not just the CEO. Others are paid only a fraction of CEO¶s salaries  Executive compensation frequently is not linked to company performance. CounterCounter- Arguments  The market for executives is tight. Bidding wars & concern over retention drive compensation packages.  Executives are paid for making difficult decisions to benefit companies  Sports & entertainment stars earn as much or more for playing games or acting.  CEOs earn their money with endless hours, great pressures, and skill sets that few others possess.  Measuring executive performance is difficult, and stock prices alone are insufficient.

Latest Indian Scenario
 Average Wage Hike May Be 15.2% In 2008, Real Estate & 
Infrastructure To Get Highest Pay hike in India moved up from 14.4% in 2006 to 15.1% in 2007. And despite global concerns of an economic slowdown in the US, 2008 is expected to be better with a 15.2% average pay hike in India. For real estate and infrastructure sector, average pay hike was 25.2% in 2007 and expected to remain at a similar level this year. The average salary increase rate in India is expected to slow down to 9-10% by 2012. 9The top five attrition prone sectors were insurance (35.2%), ITeS (28.9%), hospitality (27.1%), retail (24.7%) and telecom (23.6%). The sectors that recorded the least attrition include automotive, energy, chemicals, electronics and FMCG.

  

Tax Planning
minimize the incidence of tax to both the employer and the employee.  All constituent parts of employees remuneration are deductible as business expense to the extent possible.  Remuneration received by the employees should qualify for concessional rate of taxation so that their post tax income is maximized.  Tax planning and tax avoidance are two distinct legal concepts.

 The basic purpose of tax planning exercise is to

Emerging Trends
 Charles Handy- ³The new org equation for Handysuccess is that profit & productivity are best created by half of the workforce, paid twice as well and producing three times as such.´ This can be achieved through performance linked incentive and reward system.  Such a system works on a very simple promisepromise- ³If you measure it, people will do it. If you measure it & pay for it, people will do it in spades. If what you measure matches corporate goals and strategies, the co. will be successful.´

TRAINING &DEVELOPMENT FOR PERFORMANCE IMPROVEMENT Philosophy of T & D
³Amantro««««««««««««««´ Rigved

Today¶s organizations must emphasize the characteristics of quality and continuous improvement, flexibility and adaptability in order to survive and be effective. A life long process

 The training function, now popularly called human resource

development (HRD), coordinates the provision of training and development experience in organisations  Training & Development refers to imparting of specific skills, attitude and knowledge to an employee for improved performance  It is any attempt to improve current or future employee performance by increasing an employee¶s ability to perform though learning, usually by changing the employee¶s attitude or increasing his or her skills and knowledge.  The need for training and development is determined by the employee¶s performance deficiency, computed as follows:follows:-

 Training & development need= standard performance
±Actual performance  Education, training, development  Why training?  Newly recruited employees require training  Existing employees require training for higher level job  Existing employees requires training  Training is required for attitudinal & behavioral changes.

T & D Process
    
Training need identification Training need assessment Training need judgment Budgeting and controlling the cost Selection of learning process & training methodology  Planning, designing & conducting the process  Evaluation of programme, the trainee & the feed back records

Systems Model of Training
PHASE 3 Implementation ‡On ± the- job methods ‡Off- the ± job methods ‡Management development

PHASE 4 Evaluation ‡Reactions ‡Learning ‡Behavior (transfer) ‡Results

PHASE 2 Design PHASE 1 Needs Assessment ‡Organisation analysis ‡Task analysis ‡Person analysis ‡Instructional objectives ‡Trainee readiness ‡Learning Principles

Note U.S. Organizations spend more than $50 Billion annually on training. Much of that investment is wasted Because it is not done in a systematic way

The HRD budget normally covers the following:
1. Cost of Staffing 2. Cost of planning 3. Cost of TNI & TNA 4. Cost of appraisal 5. Cost of recruitment or selection 6. Cost of testing progress 7. Cost of trials 8. Cost of running programme 9. Cost of valediction 10. Cost of training materials & training aids. 11. Cost of revising and re-testing re12. Cost of publishing or awarding 13. Cost of updating competence 14. Cost of feedback system

An instructional Systems Design Model
DESIGN & DEVELOP ASSESS NEEDS Assess training needs ‡Organizational analysis ‡Job & task analysis ‡Person analysis Develop training objectives Design & develop training, applying knowledge of learning principles ‡Select training methods ‡Develop detailed content ‡Develop training materials ‡Pilot test training program ‡Train trainer . DELIVER Deliver Training EVALUATE Evaluate training: Were objectives met? ‡Reaction ‡Learning ‡Behavior ‡Results

Methods & Sources of Information for Needs Assessment
Methods of Gathering Data for Needs Assessment Sources of Information  Existing records (e.g., output, quality, waste, downtime, complaints, accidents reports, requests for training, exit interviews, performance appraisals, equipment operation manuals, procedures manuals, job descriptions, hiring criteria, personnel files, competency models & profiles)  Incumbents  Superiors  Subordinates  Subject matter experts  Clients

        

Search of existing records Individual interviews Group interviews Questionnaires Performance tests Written tests Assessment centers Observation Collection of critical incidents  Job analysis  Task analysis

 Training need analysis
     

Org. analysis Job/Task analysis Man analysis Analysis of equipment Manpower analysis Brain storming

Method of training
 On the job training
     

Orientation training Job instruction training Apprentices¶ training Internship Job rotation / job enlargement / job enrichment Coaching

 Off the job training
 Lectures

       

Films / computerized / packaged / programmed instruction TVs Discussion / conferencing Case & studies Role Playing Simulations /games Sensitivity training In basket / in tray, method

 Different techniques of Training
         Ice Breakers ± games to know each other Leadership Games ± different styles of leadership Skill Games ± analytical skill Communication games ± bias free listening & talking TeamTeam- building games ± collaborative effort Mirroring ± external Monodrama ± insight OutwardOutward- bound Training- stress, courage TrainingCross cultural training ± varied culture

Different Instructional Methods for Employee Training
INSTRUCTIONAL METHODS  Classroom programs ± live  Workbooks/ manual  Videotapes  Public seminars  Computer- based Computer Intranet/organization's internal network  Self- study programs (Non computerized) Self Internet/ WWW  Self assessment instruments  Role plays  Case studies  Games/ simulations (not computer based)  Audio cassettes  Games/ simulations (computer- based) (computer Video conferencing (to group)  Satellite/ broadcast TV  Teleconferencing (audio only)  Outdoor experiential programs  Videoconferencing (individual desktops)  Virtual reality programs

Contribution of Training
     Increased productivity Improved morale Reduced supervision Reduced accidents Increased organizational stability

Evaluation of training Programme:
Questionnaires (feedback forms) Test / Exams Interview Observations Supervisions

Kirkpatrick¶s Four Levels of Training Evaluation
Evaluate Reactions  Did the trainees like the program, the trainers, the facilities?  Did they think the course was useful?  What improvements can they suggest? Evaluate Learning  To what extent do trainees have greater knowledge or skill after the training program than they did before? Evaluate Behavior  Are trainees behaving differently on the job after training?  Are they using skills & knowledge they learned in training? Evaluate Results  Is the organization or unit better because of training? Distribute & analyze questionnaires Administer  Written tests  Performance tests  Graded simulations Collect performance data from  Superior  Peer  Client  Subordinate Measure  Accidents  Quality Costs  Productivity profits  Turnover

 How to make training effective?
 Management commitment  Comprehensive, continuous & systematic approval  Need based training  Link T& D with performance  Review of training policies/ practices  System of evaluation of training effectiveness.

UNDERSTANDING EMPLOYMENT RELATIONS AND ITS EMERGING TRENDS
By: B.D Singh Prof. HRM & Dean MDP & Consultancy IMT, Ghaziabad

 Understanding IR
 IR is most misunderstood & even maligned subject  People have written its obituary  IR is basically a relationship management &

relation will continue till humanity/ industries exists. exists.  Relationship can be co-operative or adversial (conflicting) co In our life personal or organisational, we have relate ourselves to others - relationships gets built  I R is a culture of working together in industry ± a network of relations  Cooperation can not be regulated /bought  Co-operation requires positive Coapproach of manage people ± it requires building, nurturing & developing relationship on continuous basis ± bringing in transparency & fairness in our dealings, communicating , motivating & leading etc. ± inculcating ownership & we ± feeling ± etc. introducing devices for lasting bondage ± building bridges of trust ± developing healthy relationships



Conflict in inevitable. It is generally harmful. Requires immediate resolution. Two( broadly) types of conflict ± 1. Interpersonal ± employer & employee 2. 2. Inter group/ inter organizational  Interpersonal conflict arises out of terms of employment between employer & employees (Workmen) ± Regulated by laws.  Govt. employees,  Industrial workmen ±  Managers in industries  Inter group/ Inter organizational ± individual employee is not able to deal with mighty employer, they form unions / association on the principles of individual dispensability and collective indispensability ± survival instinct fundamental right / ILO convention  Collective disputes/ industrial disputes ± wage settlement, service condition, retrenchment etc.  Instrument like collective bargaining & strike & lockout  Actors in the game of ER act & interact - managing human resource means directing, controlling, motivating & in the process reciprocating to their responses, most of the times bitter ones. ,resulting in conflicts.  All these actions & interactions are regulated by laws/ & judiciary  Industrial employment (standing orders) act, industrial dispute act, trade union act, High Court, Supreme Court judgments.

 ER is a complex subject

 Highly susceptible to forces within and outside the organisation

 Economic, Social, Psychological,Political, Technological and Market: local and global  Network of Relationship ± non leaner/Criss - Crossed  Social relation at workplace

Changes as per the pulls and pushes of the market Started as reaction to exploitation by mighty employers Post independent IR : CRP Post liberalization ER : LPG - Global competition - Global networking - Global mindset - Global standards - Speed and responsiveness - Total quality - Customer concern - Survival and excellence

 Does not have a fixed profile
   

- Change both in context & contents

Changing Business Skylines / Environment and Employee Relations
Post industrial societies- the third wave- (toffler) societieswave Sunrise industries ± IT, ITES, Telecom, Hotel, Health services, Insurance, Pvt. Banking, Pharmaceuticals, Pvt. Retails, etc. more of employment in these sectors etc.
± Employee Based Organizations  Require: Service oriented work force  E-industries (BPOs, KPOs) mushrooming  Knowledge workers

 Shrinking organized sector:  Traditional Manufacturing sector
 Technological upgradation, restructuring, Disinvestment, Mergers & acquisitions retrenchment,

 Entirely different organisation structure: Flatter, leaner-virtual leaner-

organizations  Employers: mostly MNCs, professionally driven, competitive Employers: mindset ± In the new context, heavier responsibilities fall on employers and their organizations. Some need to give greater organizations. attention to empowerment, rather than exploitation of human resources. resources. Building skills and giving the workforce greater say and stake in the enterprise becomes imperative. imperative.  Employees: Diverse in character, white collar, pink collar, female Employees: workers, multi-ethnic/multi-cultural multi-ethnic/multiworkforce, migrant labour, contract labour etc. ± The colour of the collar of the worker in the etc. organized sector is changing. There is a gradual reversal in the ratio changing. of executives to non-executives. Over the years, in most companies, non-executives. executives outnumbered non executives. Technological changes executives. eliminating the 3D jobs ± dirty, dangerous, and drudgerous ± and lower and middle level information gathering and processing tasks warranting different kinds of age, contracting out and outsourcing whereby the permanent employee strength shrinks to accommodate those with core and critical skills, while banishing the rest to the periphery of the organization in casual, contract, and contingent employment. employment.

Changing role of Govt.: Controller Facilitator (GOI has not Govt.: done much under political pulls and pushes) Some states are waking up to the need for wooing investment, foreign and domestic, and creating jobs. In the process they are jobs. resorting to competitive labour policies that are investor friendly . The components of the industrial relations policy of Kerala, the relaxations and exemptions to labour inspections in Rajasthan and Uttar Pradesh, the liberal response of the Tamil Nadu Government to requests from employers for notice of change, lay-off, etc., and the cancellation of layetc. the registration of an unusually large number of unions in West Bengal, have had far reaching implications for industrial relations. relations. Central laws being the same, their interpretation by the judiciary is changing. changing. In 2005 alone, in five different cases, the Supreme Court held that sleeping on duty, using abusive language against superiors. superiors. Strikes have to be not only legal (refer to the strike by government employees in Tamil Nadu,) but also justified. Where trade union action justified. is lacking, non-governmental organizations are rushing to fill the nonvacuum, particularly in matters concerning minimum wages and living conditions in the unorganized sector, and occupational safety, environment, etc. in both the organized and the unorganized sectors. etc. sectors.

The core conventions of ILO and dictates of WTO, IMF and SWB International pressure is mounting to link labour standards with international trade either through sanctions through bibi,tri,tri-, or multi-lateral institutions (governments and multiinternational agencies, such as New Actors on the Horizon The consumers and community have emerged as the new actors on the horizon. Since they horizon. represent the larger aggregations of population and wider societal interests, when their rights are impinged upon by the action or inaction of either employees or employers the court consumer courts to the Supreme Court rule that the interests of workers and managements should take a back seat. seat.

Changing nature of work practices Contracting outsourcing in place of self-sourcing selfCasualisation of work places Hiring work facilities Use of electronic gadgets PCs, SMSs, E-Mailing, Internet, Fax, Video Conferencing EChanging work System: TQM, JIT, CAM, CIM

Contd«
       
Changing look of the offices-transparent, smart offices24x 24x7x365 Work culture Paperless or less paper at least Offices software E-Documentation/ office software Intelligent offices Flexibility: Flexibility: Flexi timing, Flexi payment Changing Employment pattern
 Life long employment  Part time, Home working, Tele working, Share working

Contd«
 Changing reward/ compensation system  Variable pay in place of guaranteed pay  Employee¶s ownership: ESOP  Gain sharing/Profit sharing  Cafeteria benefit system  Emphasis on insurance and social security  New crop workers want to share power,
responsibility and gain

Emerging Trends and Issues
roadpressure IR at cross road- unprecedented pressure- Meant for CRP economy  Slow, Ad hoc, Reactive, Passive: Strike, Gherao, Passive: Collective bargaining, Litigation You cannot play the modern game of cricket with old rules/dispensation of gulli-danda gulliForces of inertia (Status Quo) Emerging market requires: requires: Speed, Quick Responsiveness, Customer focus, zero defect, just in time (JIT) No nonsense, trade union taken as nuisance , non unionism individual bargaining

   

 Changing Pattern of C & R Management ± Fixed    
/ Assured Time Wages are replaced by variable / performance ± based wages. Job security to employability. ProPro-labour stance of government is getting reduced. The attitude of judiciary is also changing. New players in the game of employee relations

   

The aggressive approaches of Indian employers in the service sector to trade unionism; unionism; The two extreme styles and strategies ± µbleak house¶ and µhappy house¶. house¶. The declining membership of trade unions, The decline in the number of µskill¶ workers and their replacement by µknowledge¶ workers; and workers; Trade unions should focus on managing the expectations of the successive new generations of workers rather than being content with their role in situations of discontent. Initiatives such as the recently formed Trade Unions Partnership for Environmental Protection (TUPEP) are welcome in the wake of mounting concern about the health, safety, and environment in and around work. TUPEP may, in association with other social partners, address itself to new problems arising out of closure of units due to environmental considerations, etc.



Collective Bargaining shifts include:

in collective bargaining, some of the

1. Centralization to decentralization; 2. Collective to individual contracts; 3. Parity to disparity; 4. Increased wages/incomes and benefits accompanied by erosion of job control; 5. Concession bargaining 6. Assertion of managerial rights than the rights of workers; 7. Skill-up gradation Skill-

Social security the shift from welfare to money fare through the conversion of several of the welfare benefits into cash is, however, a worrisome development. The other trend is a shift in retirement development. benefits from defined benefits to defined contributions. This puts the contributions. real value of retirement benefits at serious risk. risk. Employers directly reaching the work men and negotiating with them Disinvestment / Privatization and VRS are almost accepted facts of Industrial Relations. Relations. Shifting roles of traditional actors Over the years, a number of changes have taken place in the industrial relations scenario. Not scenario. only have the players changed (the inclusion of consumers and community), techniques, technology, and power structures have been re-examined and altered time and again. reagain.

Burning problems at ER front 1. Volatile labour market
2. Attrition rate very high 3. Work life balance disturbed 4. Union free organisations 5. Gender related problems 6. Issues regarding multi cultural & multi ethnic workers 7. Almost law free atmosphere- SEZ 8. Government as facilitator & not as regulator All these activities have become regular features and are increasingly impinging on emerging E.R.s. This trend is going to be accelerated, in future. future. Employee Relation has to address to all the issue

Towards new Management of ER Managerial Beliefs/Practices and Structural Contradictions
1. The company is viewed as the property of the management. Workers have management. no say/stake. say/stake. 2. Mainly the management is interested in the organization, not the union/workers. union/workers. 3. Organizations expect commitment, while viewing people as dependable and disposable . 4. There is conflict of interest and little concern for mutuality in rights and obligations. obligations. 5. Workers can be punished, but not managers for wrong personnel decisions/abuse of authority. authority. 6. Continued emphasis on direction and control 7. In the name of responsible unionism, organizations expect unions to manage (maintain) discipline, but later on grudge that unions have become the de facto management. management. 8. Management responsibility is permanent and that of unions is transient (or quasi permanent). permanent). 9. Third party dominance invited willy-nilly which causes a shift in the locus of willycontrol. control.

Typology of the Effect of old Beliefs and New Values

Old Beliefs
Aims: Capital and labour pursue different aims

New Values
Both can have many things in common, despite some legitimate differences

Mode of Operation: Facing realities, creating space within selfWinWin-lose, hard nosed management decides which self-control is possible, and contracting around agreements which and adjust if necessary take account of differences: boundary and differences: inter dependence management, situational management Outcomes: Procedures, rules, agreement Information: Hold information close to one¶s chest Style of Management: controlling Feelings Generated: Negative Realistic plans, sharing in gains, genuine increases in productivity/competitiveness, trust, harmonization Openness, transparency Mature, situational, and varied, but consistently so Positive, mutual confidence and trust

Current and Suggested Role of HRM

Current Role
1. Strategic Orientation:  Independent goals, not clearly 
linked to that of the organization, leading to activity trap Standardization of HRM policies, etc

Suggested Role
 Strategic linkage with the goals of
the organization  Flexibility. Human resource policies Flexibility. to be tailored to fit the targeted market niche view of rapid changes in environment and growing emphasis on competition

2. Management Philosophy:  Emphasis on direction & control

 Seek to achieve consensus and
commitment of people through peoples¶ participation  People as a resource  Attract and retain motivate people

 Employees as a cost  Hire and fire

 Maintain discipline and seek

 Build positive work ethos and

compliance with organizational needs organization culture for employee motivation  Hierarchical personnel policies and  Emphasis on horizontal personnel practices with a view to harmonize practices employee pay, benefits, and working conditions 3. Performance Management:  Emphasis on feelings and reliance  Develop database for objective on subjective appraisal systems with measurement of facts for analysis an eye on harmony with an eye on the bottom line ± developmental 4. Relationships:  Master and servant relationship  Emphasize reciprocity and mutuality reinforcing the negative, apartheid in relations features of the social system in workplace

5. Change in Approach:  Power centre  Service centre  Fire-fighting role Fire Proactive approach  Building organizational pyramids to  Restructuring the organization to take care of employee aspirations make them flat/horizontal  Employee orientation  People and business orientation (to include care of customers and other constituents)  People training (includes not only  Employee training employees but also vendors, dealers, customers, etc. and retaining etc.

Handling the interface between Human Resource Management and Industrial Relations
The management can establish a good industrial relations interface with HRM in the following ways: Develop sensitivity to human needs and human problems at work and beyond work. Evolve a value system based on trust, transparency, fairness, and equity. Pay attention and practice the core values professed by the organization: walk the talk and talk the walk. In all areas of decision-making - specifically transfer, promotion, and reward systems there is a need for objectivity and concern for balancing the aspirations of the people with that of the organization. Institutionalize openness in subordinate superior relationships. Allow the subordinates to speak hard facts and ventilate their grievances even though they appear to be initially, unpalatable and fictitious assumptions respectively. Deal with employee grievances promptly and explain the logic and rationale of decisions to convince the aggrieved.

People cooperate when they understand. Tell the human resource management department and professionals to operate through the line of departments/professionals Consciously provide exposure and understanding to line managers on human resource management aspects. Let line managers handle the day-to-day human resource management activities and issues/problems. Information sharing and consultation are prerequisites for shared understanding and co-operation. Review HR/IR policies and practices from time to time. Rules and procedures should unleash and facilitate, not block and hinder human potential in the organization.

Case-let
A few decades ago, Rusi Mody was invited by J.R.D. Tata, the then Chairman of Tata Iron and Steel Company, and Abdul Bari, veteran trade union leader in the same company and a renowned politician, to require why the workers in the company, where young Rusi Mody was Personnel Officer, were not joining unions even though workers in all the other firms in similar lines of business in the same neighborhood in Calcutta were forming into trade unions. Rusi Mody replied that the management was doing what the union could have done taking good care of the employees and that if ever the management were to shirk back in its responsibilities to the employees they would need the shoulder of a trade union. In other words, if employees are regarded as people and taken good care of, they would not need a trade union. Do you agree with this viewpoint? Discuss this in today s context.