NOTES ON HUMAN RESOURCE MANAGEMENT BY SURABHI>| INDEX i | SLNO TOPICS PAGE NOS | | | 1 Introduction to HRM i i 2 Induction & Orientation ~| we 3 Joining & Exit Formalities 4 \__HiBPoliey 5 eae Appraisal 6 Rewpre& Recognition 7 Anton Employee Turnover a 8 Employee Retention | 9 _Empovee Engagement a) 10 \__ Mativation C 1 Digprftional Culture & Discipline O| 2D Ting & Development CO 2B A eee Management S| 14 ob Analysis | 1S Gruwance badly | Ie HR challenges | 1% Mey [emisHUMAN RESOURCE MANAGEMENT What is HR Management? The leadership & management of people within an organization using systems, methods, processes & procedures that enable employees to optimize their performance & in turn their contribution to the organization & its goals. Functions of HRM Human resource management involves blending the traditional administrative functions along with the changing concepts of employee welfare in the organization. The retention of employees is dependent on how they are perceived & treated in the organization based on their performance, skills & abilities. The extent of activities carried out by the HR is dependent on the size & scope of the organization, the nature of operations & the attitude of management towards the employees. HRM Functions are classified into two categories: Managerial Functio Planning:-Plan & research about wage trends, labor market conditions, union demands & other personnel benefits. Forecasting manpower needs etc. Organizing: - Organizing manpower & material resources by creating authorities & responsibilities for the achievement of organizational goals & objectives. Staffing:-Recruitment & Selection Directing: - issuance of orders & instructions, providing guidance & motivation of employees to follow the path laid - down. Controlling: - Regulating personnel activities & policies according to plans. Observations & comparisons of deviations Operational Function: Procurement: - Planning, Recruitment, & Selection, Induction & Placement Development: - Training & Development, Career Planning & Counseling Compensation: - Wage & Salary, Determination & Administration Integration: - Integration of human resources with organization. Maintenance: - Sustaining & improving working conditions, retentions, employee communication. Separation: - Managing separations caused by resignations, terminations, layoffs, death, medical sickness etc.What is HR Generalist? ‘A Human Resources Generalist is a really key person within the human resources function of an organization. Principally, the HR Generalist is responsible for the day-to-day management of HR operations, which means that they manage the administration of the policies, procedures and program of the organization. The following are the main functions of a HR generalist: Induction & Orientation Joining Formalities --- Offer Letter Exit Formal Relieving Letter Retention Policy Enhancement Performance Management Performance Appraisal Rewards & Recognition Training & Development Employee Engagement Grievance Handling Motivation Organizational Culture & Discipline Job Analysis HR Challenges Attrition & Employee Turnover Compensation ManagementInduction & Orientation Induction: - Induction is a process which takes place to welcome the newcomers to the organization to make them ready for their job. Orientation: - A process which involves assimilation of new joinee in the organization to rehabilitate him/her at the new workplace & provided with basic information about the company. Objectives of Induction: 1. To reduce the organization. 2. To familiarize the new employees with the job, people, work-place, work environment and the organization. 3. To facilitate outsider ~ insider transition in an integrated manner. i 4, To reduce exploitation by the unscrupulous co-workers. 5. To reduce the cultural shock faced in the new organization. ial anxiety all new entrants feel when they join a new job in a new Steps in Induction Program Welcome to the Organization | Explain about the company Show the location, department where the new recruit will work | Give the company’s manual to the new recruit Provide details about various work groups | Give the details about pay, benefits, holidays, leaves etc. Emphasize the importance of attendance & punctuality Explain about the future training opportunities & career prospects Clarify doubts, by encouraging the employees come out with the questions. AACARRCAES AN Types of Induction: Formal & Informal Induction Individual & Collective Induction Serial & Disjunctive Indu vv v Informal induction:-Informal induction employees are directly put on the job. It promotes innovative ideas. Choice depends on management's goal. Formal Induction: Formal induction has a structured program. Formal program helps a new hire in acquiring a known set of standards.Individual Induction: Individual Induction preserves individual differences. Individual Induction is expensive & time consuming. Smaller firms go for the individual induction. Collective Induction: Collective Induction is likely to develop homogeneous views. Collective Induction is less time consuming. Large firms go for the collective inducti Serial Induction: An experienced employee inducts a new hire in case of serial Induction. Maintains traditions and customs. Disjunctive Induction: New hire do not have predecessors to guide them. Produces more inventive employees. Problems of Orientation/Induction 1. Busy or Untrained supervisor 2. Too much information 3. Overloaded with paperwork 4, Given menial tasks 5. Employee thrown into action soon 6. Wrong perceptions of employees How to make induction program effective Feed forward of the possible problems and solutions Awarm and friendly welcome will reduce the possible problems Involvement of Top Management Determination of Information Need of the new employees Planning the presentation of informat ‘A phased induction program would place the new employee at ease vvVVVVJoining & Exit Formalities This is completed by an employee when he joins the company and this is done during the orientation/induction day.HR takes the responsibilities of his /her joining in the company and also takes the responsibilities to keep the track of the information of the employee. The following are as follows. Employee track record Employee Managing Company audit requirements Criminal records Statutory compliance vvvVV There are two types of joining formalities documentation ‘Sub sion by the employee Y Education certificate: Degree certificate or mark-sheet Y Work experience certificate: Relieving letter / last drawn salary slips/ No due certificate/ Appraisal letter/ TDS certificate DOB (Date of birth): Birth certificate or 10th mark-sheet Photo ID Proof: Voter card or PAN card Address Proof S488 Receiving from the HR Y Appointment letter v Manual ¥ Bank account opening form Y ID card & Access cardExit Formalities Employee exit management or Off-boarding describes the consciously designed separation process when an employee leaves the company, for which he has previously worked within the scope of a work or service contract. eet See Steps in Exit Process nation letter to the manager & to the HR Acknowledging the resignation letter Meeting with the employee & HR Pending projects to complete Handover process/ projects Notice period Exit interview Relieving formalities Full &HR Poilicy Policies are the ground rules that keep people and processes in order. A set of proposals & action that act as a reference point for managers in their dealing with their employees. < KKK KKK KS Need for HR Policy To have formal statement on corporate thinking which will serve as a guideline for action To establish consistency in the application of the policies over a period. To accord consistent treatment to all the employees -to avoid favoritism and discrimination. To assure certainty of action and promote stability in an organization, To serve as standard for evaluating performance. To provide just and fair treatment. Policies build employee enthusiasm and loyalty HR Policies Includes Employees newsletters and house journals ~ communication media and suggestion system Health and hospitalization Vacation with pay Sickness death and maternity benefits Company stores, social security Collective bargaining , discipline Encasements , PR, Labor Relations Prohibited activities Performance AppraisalPerformance Appraisal Performance appraisal is a method of evaluating the behavior and performance of employees in the workplace. This includes appraisal of both qualitative and quantitative aspects of job performance. Features of Performance Appraisal 1, Systematic process of evaluation of an employee. 2. Analysis of the strengths and weaknesses of an employee. 3. To find out how well an employee is performing the job. 4. Appraisal is done periodically. 5. Itis based on a definite plan. 6. Performance appraisal is different from job evaluation. 7. Performance appraisal is a continuous process that is accepted by every organization.Need of Performance Appraisal There are certain requirements expected from the employees for which performance appraisal are conducted. 1. Providing information about the performance ranks on which decision regarding salary fixation, promotion, etc. are taken. 2. Review of the performance of the subordinates. 3. Providing information that helps to counsel the subordinates. 4, Getting information to diagnose deficiency in employees regarding skills, knowledge, etc. 5. To prevent grievance and in disciplinary activities. Steps in Performance Appraisal + Step 1: Define the Problem + Step 2: Preliminary Inspection and Plan the Work + Step 3: Data Collection and Analysis + Step 4: Apply the Cost Approach + Step 5: Apply the Direct Comparison Approach + Step 6: Apply the Income Approach + Step 7: Reconciliation and Final Estimate + Step 8: Write the Appraisal ReportMethods of Performance Appraisal 1. Trait Method: 1. Graphic rating scales 2. Ranking method 3. Parried comparison method 4, Forced distribution method 5. Checklist method 6. Essay method or free-form appraisal 7. Confidential reports 2. Behavior Method: 1. Behavior checklist method 2. Critical incident method 3, Behavior anchored rating scales (BARS) 4, Assessment centre 5. Psychological appraisal 103. Modern Method: ‘The modem methods are based on accomplishments of an employee in order to have evaluation, The accomplishments include sales turnover, the number of customers served, as well as the relationship with the customers and dealers. 1, 360-degree appraisal: Any person having through knowledge about the job contents can appraise an employee. According to this method all parties related to an organization will be rating an employee. Thus, performance appraisal by supervisors,” peers, subordinates, customer employees themselves (self appraisal), other users of service, and consultants is known as 360-degree appraisal. 360- degree appraisal is a systematic assessment of an employee regarding his present job, organi- zational expectations and his potentialities for a better job. 2. Supervisor appraisal: While appraising the performance, supervisors include superiors of employee from the same department, departmental head or managers. Usually, immediate superiors appraise the performance, which in turn is reviewed by the departmental head or manager. 3. Peer appraisal: Peer appraisal is experimental with military personnel so far. Peer Appraisal is a method of evaluating the employee performance by his co-employees rather than by his manager as they have sufficient opportunity to review the performance on a daily basis. 4, Subordinates appraisal: This is a novel method in which subordinates may be asked to evaluate the superiors. This rating is quite useful in identifying competent superiors. 15. Self-appraisal If individuals understand the objectives, they are expected to achieve the standards by which they are to be evaluated, they are to a great extent in the best position to appraise their own performance. Since employees are interested in the self-development, they appraise systematically and may become highly motivated also. 6. Customer and other related parties: Employee performance a service organization relating to their behaviour, promptness, speed in doing the job, and accuracy can be judged by customers and suppliers (related parties to an organization). 7. Consultants: Consultants are trained raters who are appointed when employees/employers do not trust self- appraisal, or peer appraisal, or subordinate appraisal. Consultants observe the employees at work for a long period before rating. Purpose of Performance Appraisal The sole purpose of a performance management system is to assess and ensure that the employee is carrying out their duties which they are employed to do in an effective and ‘satisfactory manner, which is contributing to the overall business objectives. 2Reward & Recognition Recogni activities. is defined as the public acknowledgement of superior performance of specific Reward: - is defined as benefits, such as increased salary, bonuses & promotion which are conferred for generally superior performance with respect to goals. Purpose of R&R ¥ To recognize individual & team efforts ¥ Tore-enforce positive behaviors ¥ Tocreatea better working environment Y Tohavea system that recognizes as many people as possible. Difference between Reward & Recognition Y Rewards are tangible. Recognition is intangible. Y Rewards will always be transactional. Recognition should always be relational. Y Rewards are simply consumed. Recognition is mostly experienced. Y Rewards are transferable. Recognition is non-transferable. Y_ Rewards are certainly conditional. Recognition happens to be unconditional. Y Rewards are expected. Recognition is a surprise. Y_ Rewards are economical. Recognition is emotional. Y Rewards are outcome driven. Recognition is focused on behaviors. Y Rewards are fixed. Recognition is flowing. v Rewards are impersonal. Recognition is personal. OBJECTIVES «To analyse Reward and recognition programs, its goals and objectives. ‘* Approaches to successful reward and recognition program design. * Techniques to measuring employee satisfaction with reward and recognition programs. ‘* Approaches to determining program success and performance. FE« Technologies that enhance the administration and communication of reward and | recognition programs. * To know the employee's personal intention regarding rewards and recognition. To know the criteria to qualify the reward, | | Impact of Recognition Program | Procedures of Reward & Recognition | To Senior Management To Employees To Manager's of Program | Increase productivity Satisfy recognition needs | _ Efficient administration - | Improves attitudes Creates positive recognition | _ Employee excitement & | experience relations ~| Build loyalty & Provides a wide selection of | __ Involves all employees | commitments attractive, personalized | - | awards | | Generate positive feedbacks | Build belongingness & | Develops a partnership with | | loyalty the workforce. | _| Empower workforce Assure efficiency | | | + Target Your Audience - + Decide an appropriate name for the program * Build a Budget * Develop Criteria + Determination of appropriate reward + Communication of Program to employee + Present the Awards | + Evaluate the Program > TARGET YOUR AUDIENCE: - When managers and supervisors think about appreciation, they may repeatedly suppose that one plan fits all. Although each | organization has tactical goals to achieve, each work component within the organization has distinct groups of employees who generally require different motivational plan. First, you require deciding which part of your work unit or agency that needs to be motivated by achieving goals within the work environment. > DECIDE AN APPROPRIATE NAME FOR THE PROGRAM: - Choose a declaration i regarding the purpose of the program that can b e clearly understood by employees. Decide an appropriate name for the program; it should be compatible with the work 4v unit and/or agency culture. BUILD A BUDGET: - Budget includes, the costs of the promotional resources, the potential number of recipients, the costs of the awards, the presentation type (formal /informal; location), the number of citizens expected to attend the reward presentation, the expenses of foodstuff, facilities, streamer, equipment, etc. DEVELOP CRITERIA: - These are the standard, frequently written, that participants need to meet to succeed in the program. Be precise about the timeframe for which the target must be completed. Create a measurement system that is understood by employees, viewed as fair, and quantifiable. Consider how often progress is reported (daily, weekly, monthly, quarterly). Send reports on a regular basis to keep interest levels high. DETERMINATION OF APPROPRIATE REWARD: - Choosing awards is one of the most important steps in the success of plan. If the reward selected does not motivate or inspire employees to achieve the affirmed goal, the agenda may have less contribution and not achieve the level of success expected. By intriguing into deliberation input from the supervisors, employees, and/or the besieged spectators, you should be able to decide the rewards that do or do not have connotation. Diversity is significant because beneficiary have varying tastes and interests. There are a broad variety of awards that include financial awards, n on-financial awards, and recognition leave. COMMUNICATION OF PROGRAM TO EMPLOYEE: - Program communication is necessary from the start up and should be continuing. By connecting employees and supervisors in n the growth of the program, firm can be on the right way. Mystery is a huge way to attract the interest of employees. Throughout the plan, offer status updates via mail, E - mail or Intranet to the employees. PRESENT THE AWARDS: - It should be make sure that presentation matches the significance of the appreciation. One may prefer to use formal or informal means of appreciation. However, as a manager, a person needs to believe the additional financial impact of a formal presentation. Presentation should worthy of the reason that it is for recognizing the employee. EVALUATE THE PROGRAM: - It's important to measure the success of recognition program by considering both tangible and insubstantial results. Ask for comment from upper management, and supervisors and employees (participants and non ~ participants). Share out an employee appraisal survey prior to and during the program initiative also may be valuable. Also, appraisal income rates and attendance/delayed records should provide some indication of success of your agenda as well. Consider demeanor a survey of your customers that may indicate the success of your agenda, Official surveys or casual customer criticism can provide the basis for your evaluation. 15TYPES OF REWARDS Extrinsic rewards: concrete rewards that employee receive. a) Bonuses: Usually annually, Bonuses motivates the employee to put in all endeavours and efforts during the year to achieve more than a satisfactory appraisal that increases the chance of earning several salaries as lump sum. The scheme of bonuses varies within organizations; some organizations ensure fixed bonuses which eliminate the element of asymmetric information, conversely, other organizations deal with bonuses in terms of performance which is subjective and may develop some sort of bias which may discourage employees and create setback. Therefore, managers must be extra cautious and unbiased. b) Salary raise: Is achieved after hard work and effort of employees, attaining and acquiring new skills or academic certificates and as appreciation for employees duty (yearly increments) in an organization. This type of reward is beneficial for the reason that it motivates employees in developing their skills and competence which is also an investment for the organization due to increased productivity and performance. This type of reward offers long-term satisfaction to employees. Nevertheless, managers must also be fair and equal with employees serving the organization and eliminate the possibility of adverse selection where some employees can be treated superior or inferior to others. ©) Gifts: Are considered short-term. Mainly presented as a token of appreciation for an achievement or obtaining an organizations desired goal. Any employee would appreciate a tangible matter that boosts their self-esteem for the reason of recognition and appreciation from the management. This type of reward basically provides a clear vision of the employee's correct path and motivates employee into stabilizing or increasing their efforts to achieve higher returns and attainments. Monetary gifts, such as Gift cards are also more likely to be used for luxury purchases and can build an emotional bond with the organization. 4d) Promotion: Quite similar to the former type of reward, Promotions tend to effect the long-term satisfaction of employees. This can be done by elevating the employee to a higher stage and offering a title with increased accountability and responsibility due to employee efforts, behaviour and period serving a specific organization. This type of reward is vital for the main reason of redundancy and routine. The employee is motivated in this type of reward to contribute all his efforts in order to gain managements trust and acquire their delegation and responsibility. The issue revolved around promotion is adverse selection and managers must be fair and reasonable in promoting their employees e) Other kinds of tangible rewards 16VV VVVVVY 2. Intrinsic rewards: tend to give personal satisfaction to individual” i. Information / feedback: Also a significant type of reward that successful and effective managers never neglect. This type of rewards offers guidance to ‘employees whether positive (remain on track) or negative (guidance to the correct path). This also creates a bond and adds value to the relationship of managers and employees. ii. Recognition: Is recognizing an employee's performance by verbal appreciation. This type of reward may take the presence of being formal for example meeting or informal such as a "pat on the back" to boost employees self-esteem and happiness which will result in additional contributing efforts. Trust/empowerment: in any society or organization, trust is a vital aspect between living individuals in order to add value to any relationship. This form of reliance is essential in order to complete tasks successfully. Also, takes place in empowerment when managers delegate tasks to employees. This adds importance to an employee where his decisions and actions are reflected. Types of Recognition Recognition events such as banquets or breakfasts Employee of the month or year recognition An annual report or yearbook which features the accomplishments of employees Department or company recognition boards Informal or spontaneous recognition Additional support or empowering the employee Symbolic recognition Latter of expressions (thanks..) METHODS OF REWARDS & RECOGNITION Basic Pay: - Pay is an essential factor, which is closely related to job satisfaction and ‘motivation. Although pay may not be a reward as this is a static amount, which an employee will be paid every month, it will be considered as a reward if similar work is paid less. Additional Hour's Rewards: - This is similar to that of overtime. However, itis paid to employees if they put in an extra hour of work for working at unsocial hours or for working long hours on top of overtime hours. Commission: - Many organizations pay commission to sales staff based on the sales that they have generated. The commission is based on the number of successful sales and 7the total business revenue that they have made. This is a popular method of incentive. Bonuses: - Bonuses will be paid to employees, who meet their targets and objectives. This is aimed at employees to improve their performance and to work harder. Performance Related Pay:-This is typically paid to employees, who have met or exceeded their targets and objectives. This method of reward can be measured at either team or department level Profits Related Pay: - Profits related pay is associated with if an organization is incurring a profit situation. If the organization is getting more than the expected profits, then employees receive an additional amount of money that has been defined as a variable component of the salary. Payment by Results: - This is very similar to that of profit related pay. This reward is based on the number of sales and total revenue generated by the organization. Piece Rate Reward: - Piece rate reward is directly related to output. The employees get paid on the number of ‘pieces’ that they have produced. These pieces will be closely inspected to make sure that quality standards are being met. Recognition: - Employees will not always be motivated by monetary value alone. They do require recognition to be motivated and to perform well in their work. Job Enrichment: - This is a common type of recognition that is aimed at employees to get motivated. Job enrichment allows more challenging tasks to be included in the day- to-day tasks performed by the employee. Working the same way every day may prove to be monotonous to the employees. Therefore, there will be a lack of interest and the performance drops. Job Rotation: - Unlike job enrichment, job rotation refers to shifting employees between different functions. This will give them more experience and a sense of achievement. Teamwork:-Teamwork is also considered as recognition. Creating teamwork between team members will improve performance at work. Social relationships at work are essential for any organization. Healthy social relationships are considered as recognition to the employees. This improves their morale and performance. Empowerment: - Empowerment refers to when employees are given authority to make certain decisions. This decision making authority is restricted only to the day -to-day tasks. Though, by giving employees authority and power can lead to wrong decisions to be made which will cost the company. So, Empowerment will not relate to day-to-day functioning author 18Y 14. Training: - Many organizations place a greater emphasis on training. This is considered as recognition for employees. Training could vary from on the job training to personal development training. Training workshops such as train the trainer or how to become a manager will give employees a chance to switch job roles and this will increase their motivation levels. Y Awards: - This again is an important type of recognition that is given to employees, who perform better. Organizations have introduced award systems such as best performer of the month, etc., and all these will lead employees to perform better. 19Attrition & Employee Turnover Attrition in business can mean the reduction in staff or employees in a company through normal means, such as retirement and resignation, the loss of customers or clients to old age or to growing out of the company's target demographic. Types of Attrition Attrition is broadly categorized into two definitions: Voluntary and Involuntary. v SSN KKK KAS Involuntary Attrition: Involuntary termination is the employee's departure at the hands of the employer. There are two basic types of involuntary termination, known often as being “fired” and “laid off.” To be fired, as opposed to being laid off, is generally thought of to be the employee's fault, and therefore is considered in most cases to be dishonorable and a sign of failure. Voluntary Attrition: Voluntary attrition is the employee's departure on his own. This happens when an employee resigns from an organization for personal or professional reasons. Voluntary attrition is one of the major pain points for companies in growing economies. Benefits of Attrition Space for entry of new talents Removes bottleneck in the progress of the company Evolution of high performance teams IMPACT ON COMPANIES Loss of productivity High cost of recruitment High cost of training Wastage of precious time on training & selection process Affects the budget of a company Loss in revenue 20