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Chapter: 1 Human resource Management 1.1 INTRODUCTION An organization is made up of four resources, namely men, material, money and machinery. Of these, the first one id living one, i.e. human resource and other three are non-living i.e.non human. It is the human/people that make use of non human resources. Hence, people are the most significant resources in an organization. It is man who makes all the difference in organizations Organization may be a manufacturing firm, a business concern, an insurance company, a governmental agency, social organizations, hospital, a university and even families. It may be small or large, simple or complex. An Organization is a human grouping in which work is done for the accomplishment of some specific goals, or missions. 1.2 MEANING & DEFINITION OF HRM: 1.2.1 Human Resource Management means: “The management of human resources is viewed as a system in which participants seeks to attain both individuals of group goals”. If an analysis is made of this definition it will be seen that personnel management involves procedures and practices through which human resources are managed (i.e. organized and directed) towards the attainment of the individual, social and organizational goals. By controlling and effectively using manpower resources, management tries to produce goods and services for the society. 1.2.2 Definitions: 1.2.2a Human Resource Management involves all management decisions and practices that directly affect or influence the people, or human resources, who work for the Organization. An organization’s employees enable an Organization to achieve its goals, and the management of these human resources is critical to an organization’s success. 1.2.2b According to Process Systems View Human Resource Management means: “ Human Resource Management is the systematic planning, development, and control of a network of inter related process affecting and involving all members of an Organization”. Key Terms used in this definition: Process: Process is an identifiable flow of interrelated events moving towards some goal, consequence and end. An example of the human resource management is the staffing process, a flow of events that results in the continuous filling of positions within the Organization. These events include such activities as recruiting applicants, making hiring decisions, and managing career transitions such as transfers and promotions.  Flow: Flow implies movement through time and in the direction of a result;  Inter-related: implies interaction within the process and between events;  Goal and Consequence (Purpose): suggest a human objective;  Events: are activities, happenings or change;  End: implies some conclusion or consequence that may not necessarily be sought or planned by man. System: System is a particular set of procedures or devices designed to control a process in a predictable way. For e.g. Staffing System of an Organization. As a process it includes:

 Human Resource Planning;  Job and Work Design;  Staffing;  Training and Development;  Performance Appraisal and Review;  Compensation and Reward;  Employee protection and representation;  Organization Improvement. 1.2.2c “Human Resource Management is the planning, organizing, directing and controlling of the procurement, development, compensation, integration, maintenance and separation of human resources to the end that individual, organizational and societal objectives are accomplished". Edward Flippo 1.2.2 General Definition: “Personnel Management is the recruitment, selection, development, utilization of and accommodation to human resources by organizations. The human resources of an organization consists of all individuals regardless of their role, who are engaged in any of the organizations activities”. 1.7 Functions of Human Resource Management According to different authors HRM functions can be divided in to different categories. Some of the categories are as follows: 1. General and Specific functions; 2. Personnel administration and Industrial relations functions. 3. Managerial and Operative functions 1.7.1 General and Specific functions: General Functions:  To conduct personnel research;  To assist in the programmes of personnel administration;  To develop appraisal plans;  To launch education and training programmes;  To develop a competent work force;  To establish and administer varied personnel services delegated to personnel department. Specific Functions:  Employment;  Safety;  Wage and salary;  Benefit Schemes;  Community relations and  Advice and counseling the employees. 1.7.2 Personnel Administration and Industrial Relations Functions: Personnel Administration:

These functions relate to the function of managing people from the lower to the upper level of the Organization and embraces policy determination as well as implementation of policies by the personnel at the lower levels; Industrial Relations Functions: These functions relate to interactions between the management and the representatives of the unions. Such functions involve all activities of employer employee relationship, such as Organization of the union members, negotiations of contracts, collective bargaining, grievance handling, disciplinary actions, arbitration etc- the purpose of all these being to prevent conflict between two parties. 1.7.3 Managerial and Operative Functions; Managerial Functions: Management is Personnel administration. It is the development of the people and not the direction of the things. Managing people is the heart and essence of being a manager. Thus, a Human Resource Manager is a manager and as such he performs the basic functions of management. Inputs
Human and Economic Resources interacting with environmental changes

Planning Determinatio n of short to long range plans to accomplish

Organizing Development of the Orgn. Structure according to predetermine

Directing
Stimulation and motivation of Organization personnel according to predetermined plans

Controlling
Assurance that directed action is taking place according to predetermined plans.

Outputs
Goods and services needed by the organization customers

Feedback of significant deviations from planned performance (Managerial Functions) Fig: 2 Operative Functions:These functions are concerned with the activities specifically dealing with procuring, developing, compensating and maintaining an efficient work force. These functions are also known as service functions.  Procurement Function;  Development function;  Compensating function;  Integrating function;  Maintenance function. Managerial Functions:  Planning: Is a predetermined course of action. Planning is a hard job, for it involves the ability to think, to predict, to analyze and to control the actions of its personnel and to cope with a complex, dynamic fluid environment. They bridge the gap from

where we are to where we want to go. The two important features of planning are research and forecasting. The task of forecasting personnel needs in relation to changes in production or seasonal variations and the leveling out of differences in the production extremely important, both for employees and for management. Therefore, planning and decision making has to be undertaken much in advance of an action so that unforeseen or anticipated problems and events may be properly handled. This as also stressed by the saying: “ Good managers make things happen”.  Organizing: An Organization is a means to an end. It is essential to carry out the determined course of action. Complex relationships exist between the specialized departments and the general departments as many top managers are seeking the advice of personnel manager. Thus, Organization establishes relationship among the employees so that they can collectively contribute to the attainment of company goals.  Directing: Direction is an important managerial function in building sound industrial relations besides securing employee contributions. Co-ordination deals with the task of blending efforts in order to ensure successful attainment of an objective. The personnel manager has to coordinate various managers at different levels as far as personnel functions are concerned. Personnel management function should also be coordinated with other functions of management like management of money, machine, and material.  Controlling: Controlling involves checking, verifying and comparing of the actualize with the standards, identification of deviations if any and correcting of identified deviations. Thus, action and operation are adjusted to predetermined plans and standards through control. Fig. 3: Functions of Personnel Office/ Personnel Management. Operative Functions: The operative functions of human Resource Management are related to specific activities of personnel management e.g. employment, development, compensation & Relations. All these functions are interacted by managerial functions.  Employment: Employment is concerned with securing and employing the people possessing required kind and level of human resources necessary to achieve the organizational objectives. It covers the functions such as job analysis, human resource planning, recruitment, selection, placement, induction and internal mobility.

Functions of Personnel Office Managerial Functions Operative Functions

Planning Organizing

Directing

Controlling

Employment HRD Compensation

Human Relations, Placement.

H R P; Performance- Job Evaluation; Motivation; Recruitment; Appraisal; Wage & Salary Morale; Selection; Training; Quality- Circles. Orgn.Change & Dev. Induction; Mgmt. Dev. Fringe Benefits. Career Planning
 Human Resource Development: It is the process of improving, molding and changing the skills, knowledge, creative ability, aptitude, attitude, values, commitment etc. based on present and future job and organizational requirements. This function includes Performance Appraisal, Training, Management Development, Career Planning and Development, Internal Mobility (Promotion, Demotion), Organizational Development.  Compensation: It is the process of providing adequate, equitable and fair remuneration to the employees. It includes job evaluation, wage and salary administration, incentives, bonus, fringe benefits, social security measures etc.  Human Relations: Practicing various human resource policies and programmes Loire employment, development and compensation and interaction among employees create a sense of relationship between the individual worker and management, among workers and trade unions and management. It is the process of interaction among human beings. Human relations are an area of management in integrating people in to work situation in a way that motivates them to work together productively, cooperatively and with economic, psychological and social satisfaction. HRM is very important to us for the following reasons: 1. Development and Growth of the organisation:HRM paves way for development and growth in the organisation. But how? Can you come out with some answers? By improving the individual capabilities, acquiring necessary cooperation and developing teamwork HRM makes sure that the organization develops and grows well. Goals of the organization are met by HRM by effective motivation and excellent utilization of employees. 2. Creation of healthy culture in the Organization:

HRM creates and maintains excellent culture in the organization and it makes people develop and grow. 3. Maintenance of Human Resources: The development, care of Human Resources is done by the HRM. 4. The concept of Human beings is a very crucial and vital factor of production; HRM is gaining more and more importance day by day. It also has important implication in societal development also. IT IS THE HEART AND SOUL OF MODERN MANAGEMENT. 1.INTERNATIONAL HRM Global Human Resource Management is a process concerned broadly with recruiting of persons, training them and putting them to the most productive usage. It is also concerned with maintaining of congenial international industrial relations. It is the essential prerequisite for the success of the international firm owning to its complexities. Broadly defined, international human resource management (IHRM) is the process of procuring, allocating, and effectively utilizing human resources in a multinational corporation. If the MNC is simply exporting its products, with only a few small offices in foreign locations, then the task of the international HR manager is relatively simple. However, in global firms human resource managers must achieve two somewhat conflicting strategic objectives. First, they must integrate human resource policies and practices across a number of subsidiaries in different countries so that overall corporate objectives can be achieved. At the same time, the approach to HRM must be sufficiently flexible to allow for significant differences in the type of HR policies and practices that are most effective in different business and cultural settings. 1.1 Characteristics of International HR – • International Human Resource Management (GHRM) -- the planning, selection, training, employment, and evaluation of employees for global operations.

• •

GHR managers serve in an advisory or support role to line managers by providing guidelines, searching, training, and evaluating employees. How a firm recruits, trains, and places skilled personnel in its worldwide value chains sets it apart from competition. firm’s operations worldwide. The combined knowledge, skills, and experiences of employees are distinctive and provide myriad advantages to the

1.2 Regulatory Policies of International HR: • Four major tasks of HRM – – – – 1.2.1 Staffing policy. Management training and development. Performance appraisal. Compensation policy.

STAFFING POLICY: a. Selecting individuals with requisite skills to do a particular job. b. Tool for developing and promoting corporate culture. c. Types of Staffing Policy • • • Ethnocentric Polycentric Geocentric

1) Ethnocentric Policy: • • Key management positions filled by parent-country nationals. Best suited to international businesses.

 Advantages: – – – Overcomes lack of qualified managers in host nation. Unified culture. Helps transfer core competencies.

 Disadvantages: – – Produces resentment in host country. Can lead to cultural myopia.

2) Polycentric Policy: • • • Host-country nationals manage subsidiaries. Parent companies nationals hold key headquarter positions. Best suited to multi-domestic businesses.

 Advantages: – – – Alleviates cultural myopia. Inexpensive to implement. Helps transfer core competencies.

 Disadvantages: – – Limits opportunity to gain experience of host country nationals outside their own country. Can create gap between home and host country operations.

3) Geocentric Policy: • • Seek best people, regardless of nationality. Best suited to global and trans-national businesses.

 Advantages: – – – Enables the firm to make best use of its human resources. Equips executives to work in a number of cultures. Helps build strong unifying culture and informal management network.

 Disadvantages: – – – National immigration policies may limit implementation. Expensive to implement due to training and relocation. Compensation structure can be a problem.

The aim of the Human Resources Strategy is to support staff. This it will do by developing and promoting good HR practice for the recruitment and development of high quality staff, by effectively managing their performance and by providing appropriate rewards and flexible opportunities that allow individuals to manage their own development. Core Functions of International Human resources are: A. Recruitment B. Selection Process C. Expatriates D. Performance Appraisal E. Training and Development F. Compensation

Sources

of

Recruitment

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MODERN TECHNIQUES AND SOURCES OF RECRUITMENT FOR GLOBAL COMPANIES 1) Walk-In -: The busy global organizations and the rapid changing companies do not find time to perform various functions of recruitment. Therefore they advise the candidates to attend for an interview directly and without a prior application on a specified date, time and at a specified place. 2) Consult-In -: The busy and dynamic global companies encourage the potential job seekers to approach them personally and consult them regarding the jobs. The international companies select the suitable candidates from among such candidates though the selection process.

3) Head-Hunting -: The global companies request the professional organizations to search for the best candidates particularly for the senior executive positions. The professional organizations search for the most suitable candidates and advice the global company regarding the filling up of the positions. 4) Body-Shopping -: Professional organizations and the hi-tech training institutes develop the pool of human resources for possible employment. The prospective employers contact these organizations to recruit the candidates. The body shoppers appoint people for their organization and provide the required/specific employees to various organizations on request. In fact, body shoppers collect fee/commission from the organizations and pay the salary/benefits to the employees. 5) Business Alliance -: It is like acquisitions, mergers, and takeovers help in getting human resources. In addition, the companies do also have alliances in sharing their human resources on ad-hoc basis. 6) Tele-Recruitment -: The technological revolutions in telecommunication helped the organizations to use internet as source of recruitment. Organizations advertise the job vacancies though the World Wide Web internet. The job seekers send their application though e-mails or internet websites. STEPS IN THE SELECTION PROCESS Step 1: Preliminary Selection Preliminary selection of applicants is often done by setting minimum standards for the job, and communicating these standards to the employees, and agencies who help them recruit. The fact that some potential applicants may not apply because of their inability to meet the minimum requirements serves as an initial screening device. Then, when reviewing resumes and application forms, firms are further able to screen out unacceptable job candidates. At this point, firms can also assign priorities to the resumes so that the most promising candidates may be seen first. Step 2: Employment Tests

One way to ensure that selection decisions are based on objective data, is to use employment tests. Employment tests provide firms with objective data for purposes of comparing applicants. Examples of such tests include; paper and pencil test, manual dexterity and strength tests, and simulation exercises. Employment Tests: Validation To be useful, employment test must be valid. Validity requires that the test scores relate to actual job performance. Hence, the use of tests is not necessarily a simple process. Whereas a firm may be inclined to use an "off-the-shelf" product, such a test may bear little resemblance to the job-related tasks a successful applicant might be required to do. Before using a test, firms should ensure that they are, in fact, valid. Tests must be validated on those jobs to which tests are being applied and, tests must be validated for all groups to which tests are being applied. Employment Tests: Reliability Not only must employment test be valid, they must also be reliable. That is, employment tests should yield consistent results. An employment test should give a similar score each time the person takes the test (tests that rely on luck are not reliable). Very often, paper and pencil tests are used to test knowledge. A firm could use a paper and pencil knowledge test to ascertain an applicant's knowledge of computer programming skills or to test whether or not an applicant understands government regulations governing an industry. Generally, knowledge tests have good reliability, but their validity must be tested before they are used. A keyboarding test, testing an applicant's keyboarding speed and accuracy, is an example of a manual dexterity or performance test. Performance tests measure the applicant's ability to perform some part of the job for which applicants are to be hired. Often, there is an assumption of validity insofar as the test includes a representative sample of the work the applicant may be required to do. Firms must be cautious not to use tests that might discriminate against any minority group.

An in-basket exercise, in which administrative activities are simulated and an applicant's abilities to deal with these activities is evaluated, is one example of a simulation exercise. Step 3: Selection Interview Selecting the best candidate for the job is the #1 priority of the selection process. The employment interview is conducted to learn more about the suitability of people under consideration for a particular job and is one further obstacle for the applicant to overcome. The interview is one further means of reducing the number of people who might be eligible for the job. The selection interview proceeds in a series of stages. Initially, the interviewer needs to be prepared. Part of this preparation includes deciding where to hold the interviews and which type of interview to conduct. Preparation also includes carefully reading through and making notes on the applicants' application forms and resumes. At this stage, interviewers should make frequent reference to the job (job description) to compare the applicant's background with the job's requirements. The preparatory stage also includes developing a series of job-related questions. During the interview, the interviewer should have an outline of questions, on which to take notes. During the interview process itself, initially, the interviewer(s) should ensure the creation of rapport between interviewer(s) and the interviewee. Next, the two parties can engage in the exchange of information. Once the interview has been terminated, the interviewer(s) must set aside some time to evaluate the notes they have taken during the process. Step 4: Verification of References Personal References
• •

Usually provided by friends or family. Objectivity and candor are questionable.

Employment References

• • •

Differ from personal references. Discuss the applicant's work history. Questionable usefulness
o

former employers are unlikely to be candid

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Useful primarily as confirmation of prior employment. Frequently omitted entirely from the selection process.

Employment References: the Telephone Inquiry
• • • • •

Fast. Cheap. Voice inflections or hesitations to blunt questions may be very informative. Less than 22% seek negative information. Approx. 48% used to verify application information.

Step 5: Medical Evaluation
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Generally a health checklist
o o

health information accident information

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Occasionally the checklist is supplemented by a physical examination Rationale:
o

employer may be entitled to lower health or life insurance rates for company-paid insurance may be required by provincial or local health officials may be used to determine whether the applicant can handle physical or mental stress

o o

•

Caution:
o

a congenital health condition may be considered a disability failure to hire an applicant due to a disability may be seen as discrimination against a qualified applicant

Step 6: Supervisory Interview Since the immediate supervisor is ultimately responsible for new workers, he or she should have input into the hiring decision. The supervisor is better able to evaluate the applicant's technical capabilities and is in a better position to answer the interviewee's job-related questions. Further, the supervisor's personal commitment to the success of the new employee is higher if the supervisor has played a role in the hiring decision. Step 7: Realistic Job Preview The realistic job preview involves showing the applicant(s) the job site in order to acquaint them with the work setting, commonly used equipment, and prospective coworkers. The realistic job preview is intended to prevent initial job dissatisfaction with a job by presenting a realistic view of the job. Research shows that job turnover is lower when realistic job previews are used. Step 8: Hiring Decision The actual hiring of an applicant constitutes the end of the selection process. At this stage, successful (as well as unsuccessful) applicants must be notified of the firm's decision. Since money and effort has been spent on all applicants, the HR department may wish to consider even the unsuccessful applicants for other openings in the organization. The applications of unsuccessful applicants are often kept on file and the applications of successful applicants will be retained in the employees' personnel files. No matter what the form of the job offer, the principle is generally the same: do not make promises or statements that you cannot or do not intend to keep. Such statements can lead to expensive litigation if it is later decided to terminate the employee. When a job offer is made, it should include the following information:
• •

Position offered. Location of the job.

•

Salary (although sometimes salary must be negotiated before the applicant will accept). Benefits. Starting date. Any papers or information that should be brought on the first day of work. A date (or time) by which the applicant must respond to your job offer, so you can move on to the next candidate if your first choice doesn't accept. Benefits. Starting date. Any papers or information that should be brought on the first day of work. A date (or time) by which the applicant must respond to your job offer, so you can move on to the next candidate if your first choice doesn't accept. The interviewing process. Did employment tests support or help the hiring decision? If not, maybe the firm will have not the kinds of test it administering. Further the evaluation process should help the firm decide if the time and cost involved in the testing is worth it.

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EXPATRIATES Global companies, after selecting the candidates place them on the jobs in various countries, including the home country of the employee. But, the employees of the global companies are also placed in foreign countries. Even those employees who are placed initially in their home countries are sometimes transferred to various foreign countries. Thus the employees of global companies mostly work and live in foreign countries and their family members also live in foreign countries. 1.2.2 TRAINING AND DEVELOPMENT: Training is an act of increasing the knowledge and skill of an employee for doing a particular job. Importance of Training and Development - It leads to

• • • • •

Improved job knowledge and skills at all levels of the organization Improved morale of the human resource Improved profitability and more positive attitudes towards profit-orientation Improved relation between boss and subordinated Improved understanding of culture of various countries

Need for Training and Development for Global Jobs • • • • • To match employee specifications with the job requirement and organizational needs To achieve organizational viability and the transformation process To meet the challenges of technological advancement To understand the organizational complexity To make the employee and his family members familiar with the language, customs, traditions etc of the foreign country 1.2.3 PERFORMANCE APPRAISAL: It is a method of evaluating employee behavior relating to expected work and behavior. Appraising the employee performance on foreign jobs is a highly complicated task as expectations of global company are multifarious. Objectives - The objectives of performance appraisal are to create and maintain a satisfactory level of performance, to contribute to the employee growth and development through training and to guide the job changes with the help of continuous ranking. Appraisers - The appraisers may be any person who has a thorough knowledge about the job content, content to appraised, standards of content and the one who observes the employee while performing a job. Typical Appraisers are: • • Supervisors Peers

• • • •

Subordinates Consultants Customers Users of Services

1.2.4 COMPENSATION: It is the amount of remuneration paid to the employees. Expatriate pay - It is mostly based on the balance sheet approach. Under the balance sheet approach, the compensation package enables the expatriate employees in various countries to maintain the same standard of living. Gratuity - Expatriate employees are paid gratuity at a fixed rate for every year of completion of services in the foreign country Allowances - Expatriate employees are paid various allowances like car allowances, resettlement allowances, housing allowances etc Taxable - Some countries pay tax-free salary. Most of the countries pay taxable salary and gratuity Profit Sharing & ESOP The Multinational corporations in order to motivate the employees for higher performance introduced a scheme of Profit Sharing. The Employee Stock Option allows the employees to purchase the share of the company at a fixed and reduced rate The advantages of stock ownership includes • • • • The plan enables the MNCs to retain efficient employees with them. It encourages the employees to improve performance. This scheme establishes significance of team effort among employees. It increases employee involvement and Participation.

G.FACTORS AFFECTING GLOBAL HRM Managing human resources in different cultures, economies, and legal systems presents some challenges. However, when well done, HR management pays dividends. A sevenyear study in Britain of over 100 foreign companies showed that good HR management, as well as other factors, accounted for more of the variance in profitability and productivity than did technology, or research and development. The most common obstacles to effective HR management are cross-cultural adaptation, different organizational/workforce values, differences in management style, and management turnover. Doing business globally requires that adaptations be made to reflect these factors. It is crucial that such concerns be seen as interrelated by managers and professionals as they do business and establish operations globally. Figure 2.1 depicts the general considerations for HR managers with global responsibilities. Each of those factors will be examined briefly. POLITICA L LEGAL ECONOMIC

CULTURA L Fig.2.1 2.1 Legal and Political Factors The nature and stability of political systems vary from country to country. U.S. firms are accustomed to a relatively stable political system, and the same is true in many of the other developed countries in Europe. Although presidents, prime ministers, premiers, governors, senators, and representatives may change, the legal systems are wellestablished, and global firms can depend on continuity and consistency.

However, in many other nations, the legal and political systems are turbulent. Some governments regularly are overthrown by military coups. Others are ruled by dictators and despots who use their power to require international firms to buy goods and services from host-country firms owned or controlled by the rulers or the rulers’ families. In some parts of the world, one-party rule has led to pervasive corruption, while in others there are so many parties those governments changes constantly. Also, legal systems vary in character and stability, with business contracts sometimes becoming unenforceable because of internal political factors. International firms may have to decide strategically when to comply with certain laws and regulations and when to ignore them because of operational or political reasons. Another issue involves ethics. Because of restrictions imposed on U.S.-based firms through the Foreign Corrupt Practices Act (FCPA), a fine line exists between paying “agent fees,” which is legal, and bribery, which is illegal. HR regulations and laws vary among countries in character and detail. In many Western European countries, laws on labor unions and employment make it difficult to reduce the number of workers because required payments to former employees can be very high. Equal employment legislation exists to varying degrees. In some countries, laws address issues such as employment discrimination and sexual harassment. In others, because of religious or ethical differences, employment discrimination may be an accepted practice. All of these factors reveal that it is crucial for HR professionals to conduct a comprehensive review of the political environment and employment-related laws before beginning operations in a country. The role and nature of labor unions should be a part of that review. 2.2 Economic Factors Economic factors affect the other three factors. Different countries have different economic systems. Some even still operate with a modified version of communism, which has essentially failed. For example, in China communism is the official economic approach. But as the government attempts to move to a more mixed model, it is using unemployment and layoffs to reduce government enterprises bloated with too many workers.

Many lesser-developed nations are receptive to foreign investment in order to create jobs for their growing populations. Global firms often obtain significantly cheaper labor rates in these countries than they do in Western Europe, Japan, and the United States. However, whether firms can realize significant profits in developing nations may be determined by currency fluctuations and restrictions on transfer of earnings. Also, political instability can lead to situations in which the assets of foreign firms are seized. In addition, nations with weak economies may not be able to invest in maintaining and upgrading the necessary elements of their infrastructures, such as roads, electric power, schools, and telecommunications. The absence of good infrastructures may make it more difficult to convince managers from the United States or Japan to take assignments overseas. Economic conditions vary greatly. Cost of living is a major economic consideration for global corporations. In many developed countries, especially in Europe, unemployment has grown, but employment restrictions and wage levels remain high. Consequently, many European firms are transferring jobs to lower-wage countries, as Mercedes-Benz did at its Alabama plant. In addition, both personal and corporate tax rates are quite high. These factors all must be evaluated as part of the process of deciding whether to begin or purchase operations in foreign countries. 2.3. Cultural Factors Cultural forces represent another important concern affecting international HR management. Culture is composed of the societal forces affecting the values, beliefs, and actions of a distinct group of people. Cultural differences certainly exist between nations, but significant cultural differences exist within countries also. One only has to look at the conflicts caused by religion or ethnicity in Central Europe and other parts of the world to see the importance of culture on international organizations. Getting individuals from different ethnic or tribal backgrounds working together may be difficult in some parts of the world. Culture can lead to ethical differences among countries. One widely used way to classify and compare cultures has been developed by Geert Hofstede, a Dutch scholar and researcher. Hofstede conducted research on over 100,000 IBM employees in 53 countries, and he identified five dimensions useful in identifying and comparing culture. A review of each of those dimensions follows.

2.unit:
SELECTIONSelection procedure is concerned with securing relevant information about an applicant. The objective of the selection decision is to choose the individual who can most successfully perform the job from the pool of qualified candidates.

The selection procedure is the system of functions and devices adopted in a given company to ascertain whether the candidate’s specifications are matched with the job specifications and requirements or not. The selection procedure cannot be effective until and unless: 1. Recruitment’s of the job to be filled, have been clearly specified (Job analysis, etc. 2. Employee specifications (physical, mental, social, behavioral, etc.) have been clearly specified; 3. Candidates for screening have been attracted. SELECTION PROCEDURE There is no standard selection process that can be followed by all companies in all the areas. Companies may follow different selection techniques or methods depending upon the size of the company, nature of the business, kind and no. Of persons to be employed, govt. regulations to be followed etc. Application Form

Written Examination

Preliminary Interview

Group Discussion

Tests

Final Interview

Medical Examination Reference Checks

Line Manager’s Decisions  Application Form: Also known as application blank. This technique is widely accepted for securing information from the prospective candidates. It can also be used as a device to screen the candidates at the preliminary stage. Information is generally required on the following items in the application forms: a) Personal background information; b) Educational attainments; c) Work experiences; d) Salary; e) Personal details; f) References.  Written Examination: The organizations have to conduct examination for the qualified candidates after they are screened on the basis of the application blanks so as to measures the candidate’s ability in arithmetical calculations, to know the candidates attitude towards the job, to measure the candidate’s aptitude, reasoning, knowledge in various disciplines, general knowledge and English language.  Preliminary Interview: The Preliminary interview is to solicit necessary in formation from the prospective applicants and to assess the applicant’s suitability to the job. This step is useful as a process of eliminating the undesirable and unsuitable candidates.  Group Discussions: The technique of group discussion is used in order to secure further information regarding the suitability of the candidates for the job. Group discussion is a method where groups of the successful applicants are brought around a conference table and are asked to discuss either a case study or a subject matter.

 Tests: The next stage in the selection process is conducting different tests. The objective of tests is to solicit further information to assess the employee suitability to the job. The important tests are: • Aptitude Test: a) Intelligence test b) Mechanical Test c) Psychomotor Test d) Clerical Test • Achievement Test: a) Job Knowledge Test; b) Work Sample Test. • Situational Test: a) Group Discussion; b) In Basket. • Interest Test: • Personality Test: a) Objective Test; b) Projective Test. • Aptitude Tests: These tests measure whether an individual has the capacity or latent ability to learn a given job if given adequate training. Aptitudes can be divided in to general and mental ability or intelligence or specific aptitudes such as mechanical, clerical, manipulative capacity etc. These are: 1. Intelligence Tests: These tests in general measure intelligence quotient of a candidate. In detail these tests measures capacity for comprehension, reasoning, word fluency, verbal comprehension, numbers, memory and space. 2. Mechanical Tests: These tests measure the capacities of spatial visualization, perceptual speed and knowledge of mechanical matter. 3. Psycho meter Tests: These tests measure abilities like manual dexterity, motor ability and eye hand coordination of candidates. 4. Clerical Aptitude: Measure specific capacities involved in office work, items of this test include spelling, computation, comprehension, copying, word measuring etc. • Achievement Tests: These tests are conducted when applicants claim to know something as these tests are concerned with what one has accomplished. These tests are more useful to measure the value of specific achievement when an Organisation wishes to employ experienced candidates. These are: 1. Job Knowledge Test: Under this test a candidate is tested in the knowledge of a particular job. 2. Work Sample Test: Under this test a portion of the actual work is given to the candidate as a test and the candidate asked to do it. • Situational Test: This test evaluates a candidate in a similar real life situation. In this test the candidate is asked either to cope with the situation or solve critical situation of the job.

1. Group Discussion: This test is administered through group discussion approach to solve a problem under which candidates are observed in the areas initiating, leading, proposing valuable ideas, conciliating skills, oral communicating skills, co-ordination and concluding skills. 2. In Basket Test: The candidate in this test is supplied with actual letters, telephone and telegraphic message, reports and requirements by various officers of the Organisation, adequate information about the job and Organisation. The candidate is asked to take decisions on various items based on the in basket information regarding requirements in the memoranda. • Interest Tests: These tests are inventories of the likes and dislikes of candidates in relation to work, job, occupations, hobbies and recreational activities. • Personality Tests: These tests prove deeply to discover clues to an individual’s value system, his emotional reactions, and maturity and characteristic mood. 1. Objective Test: most personality tests are objective tests as they are suitable for group testing and can be scored objectively. 2. Projective tests: Candidates are asked to project their own interpretation of certain standard situations basing on ambiguous pictures, figures etc., under these tests  Final Interview: Final Interview is usually followed by testing. This is the most essential step in the process of selection. In this step the interviewer matches the information abstained about the candidate through various means to the job requirements and to the information obtained through his own observation during interview. Types Of Interview: Type Type of questions Usual applications A predetermined checklist if Useful for valid results, Structured questions, usually asked of especially when dealing with all applicants. large number of applicants. Unstructured Few, if any, planned Useful when the interviewer questions. Questions are tries to probe personal made up during the details of the candidate to interview. analyze why they are not right for the job. Mixed A combination of structured A realistic approach that and unstructured questions, yields comparable answers which resembles what, is plus in depth insights. usually done in practice. Behavioral Questions limited to hypothetical situations. Evaluation is based on the solution and approach of the applicant. A series of harsh, rapid-fire questions intended to upset Useful to understand applicant’s reasoning and analytical abilities under modest stress. Useful for stressful jobs, such as handling complaints.

Stress

the applicant.  Medical Examination: Certain jobs require certain physical qualities like clear vision, perfect hearing, unusual stamina, tolerance of hard working conditions, clear tone etc. Medical examination reveals whether or not a candidate possesses these qualities.  Reference Checks: After completion of the final interview and medical examination, the personnel department will engage in checking references. Candidates are required to give the names of reference in their application forms. In case the reference check is from the previous employer, information for the following areas may be obtained. They are: job title, job description, period of employment, pay and allowances, gross emoluments, benefits provided, rate of absence, willingness of the previous employer to employ the candidate again etc.  Final decision by the line manager concerned: The line manager concerned has to make the final decision whether to select or reject the candidate after soliciting the required information through different techniques. A true understanding between the line managers and personnel mangers should be established to take proper decisions.  Employment: Thus, after taking the final decision the Organisation has to intimate the decision to the successful as well as unsuccessful candidates. The Organisation sends the appointment orders to the successful candidates either immediately or after sometime depending upon the time schedule. TRAINING Training is the act of increasing the knowledge and skill of an individual for doing a particular job. In the present scenario training is increasingly viewed as a means of fostering the growth of the individual employee but as an integrated part of organizational growth. Training is a process of learning a sequence of programmed behavior. It is application of knowledge. It gives people an awareness of the rules and procedures to guide their behavior. It attempts to improve their performance on the current job or prepare them for an intended job. Development is a related process. It covers not only those activities, which improve job performance, but also those, which bring about growth of the personality; help individual in the progress towards maturity and actualization of their potential capacities so that they become not only good employees but better man and women. Definition Of Training: “Training is the act of increasing the knowledge and skills of an employee for doing a particular job.” Edwin. B.Flippo

“Training is the organized procedure by which people learn knowledge and \or skill for definite purpose”. Dale S.Beach It is the training that bridges the gap between Job requirements and employees present specifications. Training is a process by which attitudes, skills and abilities of employees to perform specific jobs are increased. Thus, it can be concluded that training is a process that tries to improve skills or add to the existing level of knowledge so that the employee is better equipped to do his present job, or to mould him to be fit for a higher job involving higher responsibilities. In other words, training is a learning experience that seeks a relatively permanent change in an individual that will improve his/her ability to perform his job. Distinction between training and development Training is a short-term process utilizing a systematic and organized procedure by which non-managerial personnel learn technical knowledge and skills for a definite purpose. Development is a long-term educational process utilizing a systematic and organised procedure by which managerial personnel learn conceptual and theoritical knowledge for general purpose. Training refers only to instruction in technical and mechanical operations, while development refers to philosophical and theoretical educational concepts. Training is designed for non-mangers while development is designed for managerial personnel. Training and development differs in four ways:  “What” is learned;  “Who” is learning;  “Why” such learning takes place;  “When” learning occurs. Learning Dimensions Who? What? Why? When? Objectives Of Training Training Non Managerial Personnel Technical and Managerial operations Specific job related Short Term Development Managerial Personnel Theoretical and Conceptual ideas General knowledge Long Term

 The primary purpose of training is to establish a sound relationship between the worker and his job –the optimum man task relationship.  To upgrade skills and prevent obsolescence.  To develop healthy and constructive attitude  To prepare employees for future assignments The Focus Of Training Is On Three Broad Objectives:  To bring about attitudinal change.  To bring about quality to be the very top of agenda.  To savagely cut waste. Importance And Benefits Of Training Training is important to develop the employees and make them suitable for the job. Training constitutes significant part of management control. Benefits of training to following are: Organization Level:  It leads to improve profitability  It improves the job knowledge, skills and morale of the work force  It helps in organizational development and preparation of guidelines for work  It enhances quality of work and appropriate climate for growth  It supports in improving organizational communication Individual Level: It help in encouraging and achieving self development  It provides a sense of growth in learning  It increases job satisfaction and recognition  It helps the individual in effective problem solving A Model Training Program Should Encompass The Following Points:  Management overall responsibility right from planning stage to successful implementation.  The companies approach to the training function, which would include guidance for design and execution as well as dissemination of relevant information to all employees.  Provision for annual or periodic surveys in order to ensure that training are need based and development oriented.

 Identification of priority area since resources are always scarce and programs must be prioritized according to felt needs. Identification Of Training Needs  Organizational Analysis: - It involves a study of entire organization in terms of analysis of objectives, utilization of resource, environmental scanning and organizational climate analysis.  Task/Role Analysis: - It involves a careful study of jobs within in an organization in a further effort to define specific content of training. It requires systematic collection of data about the job, role or position and what type of behavior, skill, and knowledge the jobholder must have to perform certain specified tasks.  Manpower Analysis: - It is conducted through appropriate observation, supervisory evaluation. This analysis is undertaken to know about the specific areas in which training is needed DESIGNING TRAINING METHODS Training methods are means of attaining desired objectives set for a training programme. In practice, a variety of training methods are employed for achieving these objectives. But an organization cannot use all types of training methods for the reason like cost involved and also their relevance to organizational need hence, organization needs to select a method or mix of methods to meet its training needs the choice of training method would depend on a Varity of factors, such as purpose of training, nature of contents, relevance to the participants, level of trainees, competence of trainers/instructors, cost, etc. Depending on the training result and the process employed to attain these, the various training methods can broadly categorized into four groups as under: On- the job oriented methods 1. Off the job training methods On the job oriented training methods. As the name itself denotes, methods include in this cluster are those whose main objectives are centered around the job, i.e., learning on the job itself by a variety of methods. The main methods, which fall into this category, are discussed here under:  On the job training (OJT). On the job training is probably the most Common approach to training, which can range from relatively unsophisticated “observe and copy” method to highly, structured courses. In this method, the new employee is placed on a job and taught the skills necessary to perform it a trainer or superior teaches the employee. Since trainee learns by observing and handling the job this is also termed as ‘observing, and copying’ or ‘learning by doing.’

 Job instruction training (JIT). In this method, a trainer or supervisor gives instruction to an employee how to perform his job. This method of training is appropriate for acquisition or improvement of motor skills and routine and repetitive operations.  Coaching: this is similar to the JIT .in this method, the superior teaches or guides the new employee about the knowledge and skills of a specifically defined job. The superior points out the mistakes committed by the new employee and then also gives suggestions to improve upon.  Job rotation: in this method, a trainee moves from one job to another and from one department to another. This type of training method is more appropriate for developing multiskilling, operational flexibility, providing satisfaction from routine jobs and broadening the overall perspective of the trainee.  Vestibule training: this is a system in which employees learn their jobs on the equipment they will be using, but the training is conducted away from the actual work floor. This type of training is commonly used for training personnel of clerical and semi-skilled grades. OF THE JOB TRAINING METHOD:  Role-play: this is just like acting out a given role as in stage play. In this method of training, the trainees are required to enact defined roles on the basis of oral or written description of particular situation.  Case method: the case is an actual event or situation on organizational problems, which is a written description for discussion purpose. Trainees are asked to analyses the event or circumstances with an objective to identifies problems, trace out the causes for it and find out the solution to solve the problems.  Management games: the game is devised on the model of business situation. Then, trainees are divide into groups who represent the management of competing companies. They make decisions just like these are made in real life situations. Decisions made by the groups are evaluated and the likely implications of the decisions are fed back to the groups.  In basket exercise: this is also called ‘in tray’ method of training. This is built around the ‘incoming mail’ of manager. The trainees is presented with a pack of papers and files in tray containing administrative problems and are asked to take decision on these within a specified time limit. The decision taken by the trainees are compared with another. The trainees are provided feedback on their decisions.  Lectures: lecture is by far the most commonly used direct method of training. In this method the trainer provides knowledge to the trainees usually from prepared notes. Notes are also given to the trainees. This method is found more appropriate in simulations where some information is required to be shared to a large number of audience and

which does not require more participation from audience. It is a low cost method. The major limitation of this method is that it dose not provide for active involvement of the trainees.  Conferences/seminars: in this method, the trainer delivers a lecture on the particular subject, which is followed by queries and discussions. The conference leader must have the necessary skills to lead the discussion in a meaningful way without losing sight of the topic or theme. This method is used to help employees develop problemsolving skills.  Programmed instructions: this is the recently developed technique based on the principle of positive reinforcement developed by B.F.Skinner. This technique is used to teach nonmotor and behavioral skills. The subject matter to be learned is prepared and condensed into logical sequence from more complex. The trainer monitors trainee’s independent progress through the programme. The trainee gets instant feedback on his learning however; this method is expensive and time consuming also.  Sensitive training: sensitive training is also known by a Varity of names such as t-groups, laboratory training and encounter groups. (The “T” is for training.)The objective of sensitive training is to increase participants’ insights into their behavior and the behavior of others by encouraging an open expression of feelings in the trainer guide T-group. This approach is useful for understanding people’s behavior particularly when they are involved in inter personal relationships. Development of positive thinking, improvement in inter-personal relationships, proper motivation of people and organizational development are some of the important benefits of transactional analysis as a technique of training. Conclusion: To conclude, each method of training has some strengths and weaknesses. Given the purpose of a training programme, the level of participants the competence of trainers, etc., the appropriate method has to be chosen to impart training.