Semester-VI Human

Resource Management(HRM)

Module No. Module Title No. of

lectures
1 Introduction to Human Resource Management (HRM) 11

2 Procurement and Development Functions: Human Resource 12

Planning (HRP) and HRD: Training and Development

3 Performance Appraisal and Compensation Management 12

4 Human Relations, Talent Management and Employee 10

Engagement
Total 451
Course Objectives:
-to make learners acquainted with…
• The concept, features, significance & scope of Human Resource
Management
• The concept of human resource planning and practices such
recruitment, selection, placement & induction
• The concept & importance of human resource training &
development, its techniques
• Performance appraisal and compensation management
• Career planning and succession planning
• The concept of human relations, talent management and
employee engagement

2
Books for Reading & References

• Books for Reading:

1. Human Resource Management: Text and Cases (18th ed.)/ Gupta C. B.
New Delhi: Sultan Chand & Sons, 2017
2. Human Resource Management: Text & Cases/ Pande Sharon & Basak
Swapnalekha. New Delhi, Pearson, 2012
• For References:
1. Human Resource Management (10th ed.)/Dessler Gary, New Delhi:
Prentice Hall of India (Pearson), 2005
2. Human Resource Management: Text and Cases (7th ed.)/ Aswathappa K.
New Delhi: Tata McGraw-Hill Publishing, 2014

3
Module-1: Contents

1.1 HRM: Meaning-Features-Significance-Scope/Functions

1.2 Strategic HRM: Concept and Comparison with Traditional HRM
1.3 Human Resource Information System (HRIS): Meaning & Importance
1.4 Recent Trends in HRM:
i) Human Resource Audit: Meaning and Benefits
ii) Emotional Quotient (EQ/EI): Meaning and Importance
iii) Spiritual Quotient (SQ): Meaning and Factors Influencing SQ
iv) Mentoring: Meaning and Benefits
v) Challenges in HRM: HR Diversity, Attrition & Downsizing, Ethical Issues such as
Sexual Harassment & Discrimination

4
Module-1: Chapter Objectives

• To make learners acquainted with…

❖The concept of HRM, its nature importance and scope
❖The nature of strategic HRM and its comparison with the
traditional HRM
❖Human Resource Information System (HRIS): its concept &
importance
❖Recent trends in HRM such as human resource audits, EQ &
SQ, mentoring and HR challenges

5
1.1 Human Resource Management(HRM):
Concept/meaning

• “People who need people are the luckiest people in the

world”- Barbra Streisand
• ‘Organisations are not mere bricks, machines or
inventories, they are made-up of people and functions
through people’
• ‘It is people- not the buildings, equipment or brand names-
that makes a company’ -Decenzo & Robbins

6
HRM- Definition

• Edwin Flippo- “HRM is the planning, organising, directing

and controlling of the procurement, development,
compensation, integration, maintenance and separation of
human resources to the end that individual, organisational
and societal objectives are accomplished”

7
Edwin Flippo-the author of Personnel Management

8
Features of HRM (Nature of HRM)

1. A branch of general management: an application of

management functions and principles to HR
2. People-oriented concept: concerned with individuals and
groups
3. Comprehensive: covers all people at all the levels
4. Pervasive: applies to various fields such as, business,
government, defence, education, hospitality, etc.
5. Continuous: a never-ending process

9
Contd.

6. Challenging tasks: deals with human beings and their

sentiments
7. Art as well as Science: an organised body of knowledge
applied to solve HR related problems
8) Recent origin: comparatively a young discipline, came in
light during 1970s
9) Inter-disciplinary: draws ideas and knowledge from
varied areas such as anthropology, sociology,
psychology, etc

10
Significance (Importance) of HRM

1)Attracts the best talents: ensures the availability of best HR

2)Establishes cordial relationship between management and
staff
3)Leads to best utilisation of manpower
4)Brings the best out of them: helps in their career
advancement
5)Provides job satisfaction and motivation: raises their
morale

11
Contd.

6) Integration of individual goals to group goals

7) Helps them to enhance their quality of life: monetary
incentives
8) Enhances their dignity: creates a climate of trust,
transparency and cooperation
9) Helps in maintaining ethical practices and behaviour
inside and outside
10) Helps to manage the Change: by bringing changes in
their attitudes and mindsets

12
Scope or Functions of HRM

13
Scope or Functions of HRM (areas or activities
covered under HRM)

❑Job analysis and Human Resource Planning

❑Recruitment, selection and placement
❑Induction (Orientation)
• Transfer, promotion and separation
• Training and development
• Performance appraisal
• Career planning, development and succession planning

14
Contd.

• Salary administration/compensation management:

incentives, etc.
• Motivation and job satisfaction
• Grievances redressal and conflict management
• Collective bargaining and participative management
• Maintenance and safety of employees
• Social security and welfare measures
• Personnel records and HR audit

15
1.2 Strategic HRM

• “Formulating and executing HR systems including HR policies

and activities that produce the employee competencies and
behaviours the company needs to achieve its strategic aims”-
Gary Dessler
• It refers to ‘alignment of HR function with the other
functional areas such as marketing, finance, operations and
logistics so as to enhance corporate performance and achieve
its objectives smoothly and effectively’

16
Comparison between Traditional HRM (Personnel Management)
and Strategic HRM
Traditional HRM
Old personnel management
concept
Focuses on administrative tasks
Aims to manage HR functions well
Strategic HRM
New HRM concept: of recent origin
Focuses on both strategic and
executional tasks
Aims to involve HR into
formulation and implementation of
HR tasks to enhance productivity
and competitive advantage
17
Comparison (Contd.)

Traditional HRM Strategic HRM

Has short term vision and goals Has long term vision and
perspective
Seen as one of the departments of Considered as the Core of the
business only overall business functions

Rarely got a place in the Board of Now often finds a place in the
Directors Board of Directors
Emphasis is on reactive actions Emphasis is on proactive strategies

18
1.3 Human Resource Information System(HRIS):
Meaning and Benefits

• HRIS refers to ‘the system of gathering, classifying,

processing, recording and disseminating information
needed by the organisation about its human resources and
their efficient utilisation’
• It is an element of MIS (Management Information System)
that uses computer technology for better speed, accuracy,
quick reference and efficient storage

19
Benefits (Importance) of HRIS

❖Availability of accurate and timely information of HR

❖Helps in HRP: finds out deficits or surplus
❖Useful in designing training programmes: based on the
skills and knowledge of the HR
❖Helps in developing performance standards of
performance appraisal: develops linkages between
performance rewards and the job training

20
Contd.

❖Effective Career Planning and Counselling

❖Computerised HRIS saves time & costs: more accuracy
❖Meets statutory and legal requirements
❖Overall improvement of HRM

21
1.4 Recent Trends in HRM

i) Human Resource Audit: Meaning and Benefits

ii) Emotional Quotient (EQ/EI): Meaning and Importance
iii) Spiritual Quotient (SQ): Meaning and Factors Influencing
SQ
iv) Mentoring: Meaning and Benefits
v) Challenges in HRM: HR Diversity, Attrition & Downsizing,
Ethical Issues such as Sexual Harassment & Discrimination

22
Human Resource Audit: Meaning
and Benefits

❑It is a tool of managerial control

❑According to Dale Yoder, “HR audit refers to an
examination and evaluation of policies, procedures and
practices to determine the effectiveness of HRM”
❑‘A periodic review to measure the effectiveness of HRM’

23
Contd.

❑HR audit is not mandatory like financial audit, yet

organizations these days, are opting for regular HR audits
• HR auditor can be internal or external
• Generally, HR consulting firms render the services as HR
auditors

24
Scope of HR Audit:
it covers…

• HR documentation, records, & HRIS

• Job descriptions
• HR policies
• Legal compliance
• Recruitment and selection
• Training and development

25
Contd.

• Compensation and employee benefit system

• Career management
• Employee relations
• Performance measurement and evaluation process
• Employee termination, etc.

26
Benefits of HR Audit

❑HR Feedback: Provides feedback about the HR

performance
• HR Improvement: Helps in identifying the need for
improvement and enhancement of the HR function or
human capital
• Effectiveness of HR Policies: It enables to know about the
effectiveness of personnel policies and programmes

27
Contd.

• Statutory Compliance: It guides the organization in

maintaining compliance with ever-changing rules and
regulations
• Gap Analysis: Helps in analyzing the gap between ‘what is
the current HR function’ and ‘what should be the best
possible HR function’ in the organization
• Streamlines HR Processes: It is useful in streamlining the
HR processes and practices with the best processes and
practices of the industry

28
Emotional Quotient/Intelligence(EQ/EI): Meaning and
Importance

• What is an emotion? What are the common emotions?

• Emotions are the intense feelings for something or
someone
• Most common emotions include love, affection, bliss, joy,
happiness, delight, cheerfulness, sadness, fear, surprise,
anger, disgust, guilt, shame, etc.

29
EQ /EI: Meaning

• Concerned with an individual’s emotional and social skills

• It is a person’s ability to deal with his and others’ emotions
• An ability to be self aware, detect others’ emotions and
manage them well
• Those who manage them well are called as ‘Emotionally
Intelligent or Literate’

30
Daniel Goleman (‘Emotional Intelligence’- a book in
1995)

31
Dimensions of EI/EQ as given by Daniel Goleman

1) Self-awareness: EI people have high awareness of their

emotions
2) Self Management: they can regulate their emotions
better- their ups and downs
3) Self Motivation: motivated to face the setbacks/failures,
can channelise their emotions better to pursue their
goals

32
Contd.

4) Empathy: can understand others’ emotions better, can

easily emphathise with the others’ emotions (good
quality for mothers, doctors, nurses, teachers, social
workers, true friends, etc.)
5) Social Skills: can handle others’ emotions better for the
benefit of the organisations, they can establish better
interactions and networks with others

33
Importance or Benefits of EQ /EI

1. Getting along-with people well and manage their

emotions
2. Establish better communications and cordial relations
3. Understand the needs of the clients better and get more
business
4. More respect from colleagues: feel more valued, and
wanted- they are in great demand

34
Contd.

5. Create more conducive environment: helps in employee

retention
6. Useful to handle crisis: can predict people’s behaviour
and are more likely to get promotions faster- get more
responsible positions
7. Can help in solving employees’ problems: such as thefts,
crimes, violent behaviour, stress, depression, suicides,
etc.

35
Spiritual Quotient or Intelligence (SQ/SI) Meaning and
factors influencing it

• Danah Zohar coined the term "spiritual intelligence" and

introduced the idea in 1997 in her book ‘ReWiring the Corporate
Brain’
• Spirituality means the knowledge of oneself as spirit or soul and
the understanding of one’s highest spiritual qualities such as
love, peace, purity, honesty, integrity, bliss, ethical values, etc.

36
SQ: Meaning

• SQ is ‘an ability of a person to see something for the larger

good of others or society, bringing good health, happiness
and fortunes to himself and to the society at large’
• Cindy Wigglesworth defines Spiritual Intelligence as "the
ability to act with wisdom and compassion, while
maintaining inner and outer peace, regardless of the
circumstances"

37
Contd.

• IQ: What I think, EQ: What I feel,

• SQ: What I am and what I do for myself and for others
• IQ: helps to understand and analyse the tasks
• EQ: helps to understand emotions and provide motivation
• SQ: to understand ‘why the tasks to be performed’, for me
or for the benefit of others

38
Factors influencing the SQ /SI

➢Nature of an Individual: awareness of own strengths and

weaknesses, perception about values, ethics, doing good to
others
➢Education: an ability to understand and react to others’
problems
➢Inborn (hereditary) qualities: influence of family values
and traditions, person’s background/upbringing

39
Contd.

➢Environmental factors: organisational and socio-cultural

factors, Influence of friends, relatives, near and dear ones
➢Motivation and support system: training, mentoring and
counselling
➢Meditation and Yoga practices:
➢Reflection and Detached observation:

40
Mentoring: Meaning

• Who is a Mentor? What is mentoring?

• Mentor is ‘a wise and trusted adviser and helper’
• Mentoring is ‘a process of guiding, helping and providing an
emotional support to the mentees’
• A Mentor is normally a senior person, who acts as a friend,
philosopher and guide to others over a period of time

41
Benefits (Importance) of Mentoring

1)Helps to understand employees and their problems better

2)Useful in providing necessary help/advice/counselling
3)Helps in moulding mentees’ personality
4)Provides emotional support: reduces problems & improves
relations

42
Contd.

5) Raises mentees’ self-confidence: improves their

capabilities
6) Increases their commitment and loyalty: reduces
employee turnover- increases employee retention

43
Challenges in HRM: HR or
Workforce Diversity

❑It means ‘employees from different parts, with varied

cultures, ethics, beliefs, nationalities, cultural background,
religions, educational background, age-groups, gender,
attitudes and behaviour, etc.’
❑Can be an asset or a liability?
❑How to handle it?

44
HR Diversity: Challenges

❑Sensitive leadership: that understands and shows empathy

towards employees
❑Formation of small, informal groups and committees
❑Organise cultural programmes: making people to participate
❑Sensitivity training to develop batter understanding
❑Fair policies and treatment
❑Fast grievance handling procedures
❑Same canteen with diverse food menus

45
Attrition (gradual decrease)

• Employees leaving on their own but are not replaced by

the management
• Results into over-burdening of others: lowers their morale
• Impacts their health and efficiency
• May create labour problems: affecting normal operations
• Affects sales, profitability and corporate image

46
Attrition: Challenges/how to handle it

1)Communication and counselling

2)Skill development programmes: training and career growth
3)Motivation: promotion and empowerment
4)Work-life balance: between personal and professional life
5)Fair HR policies and practices: transparency in your
dealings and addressing employees’ concerns

47
Downsizing: meaning

• ‘an act of reducing the size to remain fit & healthy’

• A part of ‘restructuring process of consciously reducing the
number of business activities, closing down of certain
business, departments and eliminating certain jobs’

48
Reasons of Downsizing

• May be due to recession: low demand, leading to closure

• Technological breakthroughs: redundancy of jobs results
into surplus staff
• Competition: due to cut throat competition, cost reduction
step
• Mergers and acquisitions
• Outsourcing contracts

49
Downsizing: how to handle/challenges

❑Adopting measure such as demotion, transfers, retraining,

etc.
❑Communication: making them understand and accept the
realities
❑Attractive VRS packages
❑Assistance to laid off staff to get jobs elsewhere:
counselling

50
Ethical Issues in HRM i) Sexual
Harassment ii) Discrimination

❑Sexual Harassment:
❑According to The Sexual Harassment of Women at
Workplace (Prevention, Prohibition and Redressal) Act,
2013-
❖Physical contacts and advances
❖Demand or request for sexual favour
❖Making sexual remarks orally, comments on looks, dress,
showing of pornography, sharing of dirty jokes, etc.

51
Sexual Harassment Challenges before HR
Managers

▪ Clear written policies: warning of stern actions

▪ Fast procedure to deal with such cases: fair & speedy
investigation
▪ Setting up of separate cell: WDC, counselling
▪ Organising seminars: for women employees’ education,
and for awareness of their rights

52
Discrimination at Workplace

❑‘treating people differently due to their skin colour, gender,

religion, looks, etc.’
Effects:
▪ Demoralising employees: impacts their emotional balance
▪ Raises the cases of depression, suicide, etc.
▪ Affects work performance
▪ Non co-operative attitude from them and even from others
▪ Increase in labour problems

53
Discrimination at Workplace: Challenges

❑How to handle?
1.Clear-cut policies: with warning and actions
2.Creating free and fair environment
3.Equal opportunities and treatment
4.Counselling

54
Module-II Procurement and
Development Functions
2.1 Human Resource Planning (HRP): Meaning & Steps
2.2 Job Analysis: Concept – Components- Benefits
2.3 Job Design: Meaning- Factors influencing Job Design-
Techniques
2.4 Recruitment: Meaning & Sources of Recruitment
2.5 Selection: i) Concept and Steps in Selection Process ii)
Employee Tests & Interviews: Meaning & Types
2.6 Placement and Induction: i) Concept of Placement ii)
Meaning and Importance of Induction
2.7 HRD: Meaning and Scope
2.8 Employee Training: Meaning and Importance
2.9 Management Development: Meaning and Methods (On-
the-Job & Off-the-Job)

1
Chapter Objectives
 To make learners acquainted with…
➢ The concepts of HRP, job analysis and job
design: steps and techniques
➢ Meaning & sources of recruitment,
selection and its procedure, placement
and induction
➢ The concepts of HRD and employee
training, their importance
➢ Management development, its meaning
and methods

2
Module-II Procurement and
Development Functions
2.1 Human Resource Planning (HRP)
❑ Meaning and Steps
❑ What is HRP?
❑ Bruce Coleman defines HRP as “the
process of determining manpower
requirements and the means for meeting
those requirements in order to carry out
the integrated plan of the organisation”

3
HRP involves
 Forecasting HR needs (based on current
HR Inventory and future needs)and
 Arranging HR in…
✓ Right numbers (Quantity),
✓ Right kind (Quality),
✓ Right place, and
✓ Right time
❑ So that the organisational tasks can be
performed most efficiently and effectively

4
Steps in HRP
1) Analysing organisational activities:
present and future
2) Estimating HR requirements: exact needs
3) Forecasting the supply of HR:HR inventory
4) Determining the HR gaps: deficits or
surplus
5) Preparing the action plan: to meet the
gaps
6) Monitoring and Control: Review of HRP
and its policy

5
2.2 Job Analysis (JA)
Concept, Components and Benefits

 Simply stated, JA is a process of collecting

job-related information
 Edwin Flippo: “Job Analysis is the process
of studying and collecting information
relating to the operations and
responsibilities of a specific job”
 An immediate outcome of JA is…
1. Job Description, and
2. Job Specification

6
Components of Job Analysis:
1) Job Description 2) Job Specification
 Job Description (JD), according to Edwin
Flippo is “an organised, factual statement of
the duties and responsibilities of a specific job”
 It includes information about:
➢ Job title
➢ Job location and job summary
➢ Duties to be performed
➢ Working conditions and hazards
➢ Kinds of machines, tools, materials,
➢ Kind of supervision, etc
7
Job Specification (JS)
 Flippo- “a statement of the minimum
acceptable human qualities necessary to
perform a job properly”
 JS includes information about:
➢ Educational and professional
qualifications
➢ Human qualities, skills and aptitude
required to perform a job
➢ Experience and training
➢ Responsibilities of the job performer

8
Benefits (Importance) of Job Analysis
1. Helps in HRP: decides the number and
types of HR needed
2. Useful in Recruitment & Selection:
searching & selecting the best
3. Useful in designing Training Programmes:
depends on job & skills
4. Helps in job evaluation: finding out the
relative worth of each job

9
Contd.
5. Useful in Compensation: fixing pay-scales
depending on jobs, skills and experience
6. Helps in Performance Appraisal: to fix the
performance standards
7. Useful in designing Health & Safety
Programmes: based on unhealthy
environment, hazards, etc
8. Helps in compiling information about HR

10
2.3 Job Design (JD) Meaning, Factors
influencing and its Techniques
 What is a job?
 A Job is a ‘set of tasks (a number of
tasks/activities) assigned to a person and
performed by him’
 Some jobs have few tasks, needing limited
skills or talent to perform, e.g. typist,
maid servant, etc
 Some jobs involve more and very
complicated tasks that need more skills or
talents to perform, e.g. production
manager, finance manager, etc
11
Job Design: Meaning
 JD is ‘a deliberate and systematic attempt
to structure the technical and social
aspects of a job so as to improve
efficiency and satisfaction at work’
 JD attempts to create a match between
job requirements and human attributes

12
Factors influencing Job Design
A. Organisational Factors: i) Characteristics
of Tasks ii) Work Flow iii) Ergonomics iv)
Work Practices
B. Environmental Factors: i) Availability and
Abilities of Employees ii) Social and
Cultural Issues
C. Behavioural Factors/ Human Needs: i)
Autonomy ii) Use of Abilities iii) Variety
iv) Feedback

13
Factors influencing Job Design
A) Organisational Factors:
i. Characteristics of Tasks: Each job has a
number of tasks & each task has a
number of inter-related activities, e.g. job
of a cook/maid servant
ii. Work Flow: flow/sequence is organised
on the basis of the nature of a product,
e.g. body or doors in a car, walls and
windows in a house

14
Contd.
iii. Ergonomics: is the scientific study of
people and their working conditions,
especially done in order to improve
effectiveness
❑ It helps in designing a job to fit the
physical characteristics and abilities of
people
❑ E.g. height of machines, kitchen
platforms, switches, washrooms, etc.

15
Contd.
iv. Work Practices: established ways of doing
a job
❑ It depends upon the Traditions or the
Collective wishes or agreements between
the management and the employees’
union, etc.

16
B) Environmental Factors
i. Employees’ Abilities and Availability: use
of automation and robotics technology
when employees are in short supply
ii. Social and Cultural Issues: job design also
depends upon the literacy levels,
knowledge and awareness of employees,
hours of work, rest periods, vacations and
holidays, religious and cultural beliefs,
etc.

17
C) Behavioural Factors or Human
Needs
i. Autonomy: the amount of freedom given to
employees. Autonomy increases their self-esteem,
sense of recognition, responsibilities, etc
ii. Use of Abilities: allowing employees to use their
varied abilities to come out with something new
ideas/work
iii. Variety: variety brings interest, repetition brings
boredom. Ensure more variety in the tasks
iv. Feedback: meaningful feedback helps in
correcting their mistakes and improving their
performance & satisfaction

18
Techniques of Job Design
1) Job Rotation
2) Job Enlargement
3) Job Enrichment
4) Self-managing Teams/Groups

19
Techniques of Job Design
1) Job Rotation: shifting an employee from
one job to another. It brings different
tasks, different sets of skills, retains
interest and kills monotony and boredom
2) Job Enlargement: expanding the job
horizontally by increasing the number of
tasks, by adding more varieties, e.g.
Accountant –given a charge of cash

20
Contd.
3) Job Enrichment: vertical increase in the
number of tasks. Adding more tasks of higher
posts to make jobs more interesting and
challenging. It raises employees’ confidence
and motivation and they can be considered for
promotion, more responsible job, etc.
4) Self-managing Teams/Groups: forming a team
and giving a greater degree of freedom in
planning, decision making, execution and
controlling their own tasks and managing
their own behaviour

21
2.4 Recruitment
meaning & sources
 What is Recruitment?
 Edwin Flippo: “a process of searching for
prospective employees and stimulating
them to apply for jobs in the organisation”
 Recruitment is a positive process

22
Sources of Recruitment:
A) Internal Sources
1. Transfer: horizontal shifting of employees
2. Promotion: vertical up-ward shifting of
employees
3. Deputation: a kind of transfer, temporary
in nature
4. Calling back former employees
5. Calling back retired employees
6. Internal notice: asking existing employees
to recommend their friends, relatives, etc

23
B) External Sources
1) Advertisements
2) Placement Agencies: private agencies
3) Employment Exchange Bureaus: run by
governments
4) Campus placements: through colleges &
universities

24
Contd.
5) Labour Contractors
6) At Factory Gates
7) Unsolicited Applicants/Casual Callers:
they keep searching on their own,
applying without an advertisement

25
2.5 Selection
❑ Concept and Steps in selection
process
❑ Employee Tests and Interviews:
meaning & types

26
Selection
 ‘A process of choosing the most suitable
candidates out of all the applicants’
 A process of matching a person with the
job requirements
 A negative process
 A process of rejecting or weeding out the
unsuitable candidates by following a
particular procedure

27
Steps in the Selection Process
1. Preliminary Interviews
2. Applications: inviting or getting them
filled in from the candidates
3. Conducting a test: ‘a Test is an objective
way of testing performance, behaviour of
candidates’. There are different types test
4. Group Discussion

28
Contd.
5. Personal Interview: A process of giving
and getting information. It is a two-way
process
6. Medical or Health Check-up
7. Reference Checking
8. Final Selection
9. Placement: an act of placing someone on a
given position

29
Employee Tests and Interview:
Meaning and Types

 Tests: ‘a Test is an objective way of

testing performance, behaviour of
candidates’
 A standardised and unbiased method/way
 No scope for any partiality or favouritism

30
Types of Test
1. Achievement /Proficiency Test: tests the
knowledge or skills
2. Intelligence Test: tests memory, reasoning,
word fluency, speed
3. Personality Test: tests patience, self-
confidence, ambitions, etc
4. Interest Test: to know the interest areas, likes
and dislikes, etc
5. Aptitude (natural/acquired talent): tests the
hidden potential or ability to learn anything
new. Includes IQ, mechanical tests

31
Interview: meaning and types
 An interview is a conversation where
questions are asked and answers are
given
 In common parlance, the word
"interview" refers to a one-on-one
conversation between an interviewer and
an interviewee
 A process of giving and getting
information: a two-way process

32
Contd.
 Interview helps to know more about the
candidates like his personalities, breadth
of interests, family background,
mannerism, ways of reacting to questions,
communication, understanding level,
confidence, etc.

33
Interview: types
1) Structured (directed/patterned): a list of
questions with answers are decided in
advance. It is like a ‘Quiz Contest’
2) Unstructured: An unstructured interview
or non-directive interview is an interview
in which questions are not prearranged-
contains general type of questions

34
Contd.
3) Depth Interview:
 Depth interview is a loosely structured
interview. It allows freedom to both -the
interviewer and the interviewee -to
explore additional points and change
direction, if necessary
4) Stress Interview:
❑ It tests the behaviour during stressful
situations- may involve interruptions,
comments, criticisms, arguments &
counter arguments
35
Contd.
5) Panel: more than one interviewer on the panel
6) Group: A group interview is a screening
process where you interview multiple
candidates at the same time
❑ The point of a group interview is to see how
candidates choose to stand out from each
other,
❑ How well candidates function in a group of
people they do not know and
❑ Whether they show the teamwork attributes
that you need in your organisation

36
Contd.
7) Exit Interview:
 It is conducted with an employee when he
or she leaves the company
 Helps to know why employees are leaving,
what they liked about their jobs and what
areas of the company need improvement

37
2.6 Placement and Induction
 Placement: an act or action of placing
someone or something somewhere
 ‘the act of placing someone in a particular job
or organization’: fitting a person to a position-
proper match
 Proper placement: a must for employee
retention- to retain their interest and get the
best out of him
 An employee enjoys his work, his productivity
and quality of work become better

38
Induction: Meaning & Importance
 To induct means to admit (someone)
formally to a post or organization
 Synonyms: admit to, allow into, introduce
to, initiate into, install in, instate in, swear
into, etc.
 ‘a formal welcoming of a newly joining
employee to the organisation and making
him/her comfortable’

39
Induction
 “the process of receiving and welcoming
an employee when he first joins a
company and giving him the basic
information he needs to settle down
quickly & happily and start work”
-Michael Armstrong
 It may be of few hours, a day, few days, a
week, etc. depending upon the need, size
of the organisation, etc.

40
Importance of Induction
1. Makes the newly joining employees feel
comfortable: taken care of
2. Smooth integration of new employees:
sense of belongingness
3. Builds two-way communication: leads to
better relations
4. Facilitates informal relations and team-
spirit

41
Contd.
5. Provides information to new employees
about the organisation, its history, values
and ethics, products, plants, facilities,
departments and their heads &
colleagues, rules and regulations, safety
measures, disciplinary procedures, etc
6. Reduces their anxieties, stress levels,
absenteeism, grievances, etc

42
2.7 Human Resource Development
(HRD) Meaning and Scope
 What is Development? And why
 HRD is ‘an organised learning process
which involves a series of learning
activities designed to acquire a desired
level of competence among the
employees’

43
Scope of HRD
1) Training & development
2) Performance & potential appraisal
3) Career planning & development
4) Organisation development
5) Employee welfare & betterment
6) Motivation: rewards & incentives
7) Quality of work-life
8) HR information system: performance
records

44
2.8 Employee Training:
Meaning and Importance
 What is Training?
 Flippo- “an act of increasing the
knowledge and skills of an employee for
doing a particular job”
 Michael Jucious- “any process by which
the aptitudes, skills and abilities of
employees to perform specific jobs are
increased”
 Training is more job or occupation specific
in nature unlike development

45
Importance (Benefits) of Training
1. Improves skills and knowledge
2. Better quality: easy acceptance by customers,
higher sales
3. Optimum use of resources: minimises wastes
4. Higher productivity: cost reduction, higher
profits
5. Needs less supervision: less supervision costs
6. Low accident rates: reduces costs and saves
resources

46
Contd.
7. Motivation: morale booster, improves
employee commitment
8. Employee growth: adds value, higher
confidence, promotions, etc.
9. Employees become more adaptable to
changes: higher innovative skills
10.Faster development: business expansion
11.Enhances corporate image

47
2.9 Management (Executive)
Development: Meaning and Methods
❖ Flippo: “Management Development(MD/ED) is
the process by which managers and
executives acquire not only skills and
competency in their present jobs but also
capabilities for future managerial tasks of
increasing difficulty and scope”
❑ More systematic and continuous
❑ More in-depth: more comprehensive than
training
❑ Not just for any specific or current jobs but
preparing for more complicated, future jobs

48
Methods of Training & Development

A. On-the-Job Training Methods

B. Off-the-Job Training Methods

49
On-the-Job Methods
1) Coaching: learning by doing- on the job
and learn from seniors
2) Understudy: work under seniors whom
they are likely to replace
3) Rotation: shifts the position and learns
different types of skills
4) Planned progression: learn the tasks of
seniors along-with their regular tasks-
prepares for promotion

50
Contd.
5) Articleship/Internship: learning for a
specific period
6) Apprenticeship: combines both theory &
practice. Long duration of 6-36 months
under The Apprenticeship Act
7) Junior Board (Multiple Management):
Employees are made members of junior
boards, discusses all the issues and give
suggestions to Senior Board of mgt

51
Off-the-Job Methods
1) Lectures and Conferences: attending and
learning new ideas and things
2) Case Study/Committees: analysis of cases
and provide solutions
3) Group Discussions: forming groups, learns
through discussions
4) Vestibule: undergoes training for few days
before doing main work
5) Simulation: train under an artificial
situation, e.g. pilot training

52
Contd.
6) Role Playing: understand others’ roles
and learning different skills
7) Management Games: working under
pressure, develops quick thinking,
organising and leadership skills.
Wilderness/Outdoor-based training like
mountain climbing, river rafting, etc
8) Sensitivity Training(T-Group): go out for
few days. Helps develop an inter-personal
and empathy skills

53
Thank you

54
Module-III

Dr Kavita Kalkoti
Performance Appraisal and Compensation
Management
3.1 Performance Appraisal: Concept- Benefits-Limitations-
Methods (Traditional & Modern Methods)
3.2 Career Planning & Development: Meaning and Benefits
3.3 Succession Planning: Concept & Importance
3.4 Transfer and Promotion: i) Meaning and Objectives of
Transfer
ii) Meaning and Benefits of Promotion -Seniority & Merit as
the basis of promotion- Meaning and comparison between
Seniority and Merit Bases
3.5 Concept of Compensation Management- i) Factors
influencing Wages & Salaries ii) Time and Piece Wage
Payment Systems- Merits & Limitations iii) Essentials of a
Sound Wage & Salary Payment System
Performance Appraisal & Compensation
Management

Dale Beach-

“Performance Appraisal is the systematic

evaluation of the individual with regard to his/her
performance on the job and his/her potential for
development”
Benefits (Importance/Objectives)
1) Feedback to the employee’s about their
performance
2) Useful for pay hike, promotion, transfer, demotion.
3) Judges the effectiveness of selection & placement
policies.
4) Decides training needs- arranging for training
programmes
Benefits (Importance/Objectives)
5) Spots talent and useful in grooming
them for future role
6) Facilitates HRP, career and succession
planning
7) Helps in motivating staff- raises their
morale
8) Creates a spirit of competition-
encourages them to excel
Limitations

1. Halo effect - one positive trait may

influence the rater
2. Horn effect- unduly influenced by a
single negative trait
3. Central tendency- following a middle
(safe) path, giving an average rating to
every one
4. Personal bias- subjective opinion-
positive/negative
5. Influence of recent behaviour
Limitations
6. Incompetency of Raters- not qualified and
competent enough
7. Lack of reliable or error-free standards- to
evaluate people
8. Resistance from employees and their unions
9. Resistance from the raters
10.Time consuming- paperwork and records
keeping
11.Delays in feedback and actions/rewards
Methods of Performance Appraisal

A) Traditional Methods:
1. Confidential Report: an immediate boss
prepares it about an employee, mentioning
his job related strengths, weaknesses, etc
2. Essay Evaluation Method: more detailed
report about the overall impression,
personality and performance of
subordinates
Traditional Methods

3. Field Review Method:

conducted by an HR Expert by interviewing the
supervisors to know and evaluate the
performance of their subordinates- may be
given a questionnaire to get their opinions
4. Critical Incident Method:
Based on the attitude and behaviour of
employees during the crisis like labour strike,
fire, accidents, etc
Traditional Methods

5. Group Appraisal: an evaluation by a group of

superiors who know their subordinates well
6. The Check-list Method: contains a number of
statements that describe the person, e.g.
a. He/She reports on time
b. He follows the instructions
c. Ready to work overtime, etc
Traditional Methods

7. Forced-choice Method: grouping

two or more statements and asking
the rater/superior to say which
combination describes an
employee/person better.
Traditional Methods

8. Ranking Method: giving a rank to employees from

1 to 10 on the basis of their overall
performance/impression indicating 1 as the best
and 10 is the poorest
9. Paired Comparison Method: each employee is
compared with every other employee in a pair of
two, e.g. A & B, A & C, B & C and so on…
N (N-1)/2
When N=4
4(4-1)/2 = 6
Traditional Methods
10. Graphic Rating Scale Method :
Modern Methods
1) MBO (Management by Objectives)
MBO- (introduced in 1954, by Peter Drucker) is an
appraisal of employees based on their results or
achievements of objectives/performance
In this method, the superior and the subordinates
of an organisation together identify its common
goals; firstly the organizational goals are defined
based on which individual goals are defined by the
employees. The performance of the employees is
then reviewed on the basis of achievements of
individual goals.
2) Assessment Centres
Employees are taken away from the work-place to some
places, known as Assessment Centre. They are assigned
group activities and they are observed to understand their
abilities of planning, organising, decision-making, problem-
solving skills, etc. Different techniques such as business
games, role play and in-basket exercises are used.
3) BARS (Behaviourally Anchored Rating Scales)
• Developed by Smith & Kendall, BARS combines the
Graphic Rating Scales with Critical Incident
Method.
• BARS describes various degrees of employee
behaviour relating to specific performance
dimensions.
• The Rater observes and records the actual
behaviour and compares against the expected or
desired behaviour.
BARS
4) Psychological Appraisal Method
• Conducted by qualified psychologists to determine the
emotional, intellectual, motivational and other
concerned characteristics of an employee which are
mandatory to predict his/her potential.
• Helps to find out:
a)Intellectual characteristics such as highly intelligent,
average, poor, etc
b)Emotional aspects such as highly sensitive, moderate,
less, zero
c)Motivational aspects such as high ambitions,
moderate, no ambitions, etc
5) Human Resource Accounting Method (HRA)
• Organizations, which consider their human
capital as valuable assets, use this method to
find out the relative worth of their employees in
terms of money.
• This method assesses the cost of employees
and their contribution to the company, ideally,
the contribution part should be greater than
the cost incurred on them.
• The difference shows the net contribution or
performance of the employees to the
organisation
6) 360 Degree Appraisal
• It is a method wherein the details of an employee’s
performance are collected from other stakeholders
which include the peers, superiors, colleagues and
self
• It is used to make the appraisal process more
objective, participative, and transparent
• It is called a 360 Degree Appraisal because it
involves the persons above him, alongside him,
below him as well as a self-appraisal to evaluate an
employee’s performance
7) 720 Degree Appraisal
• It is the assessment, not only done by the
stakeholders within the organization, but also by
the groups outside the organizations including the
customers, suppliers, investors, etc.
• This is one of the methods which is used to
determine the success of the organization as whole
Career Planning & Development
Career means
‘an occupation undertaken for a significant period of
a person's life and with opportunities for progress’

Synonyms:
profession, occupation, vocation, employment, job,
etc
Career Planning

Career Planning is

‘the process by which a person selects his/her career

goals and the path to achieve these goals’

It involves designing an organisational system of

career movement and growth opportunities for
employees from the employment stage to the
retirement stage
Career Development
Career Development refers to

‘the movements made by an individual to achieve

his/her career plan’
It consists of a number of activities undertaken by
the individual employees and the organisation to
meet career aspirations and job requirements
Benefits
1. Attracts and retains the best talents
2. Offers careers suitable to their abilities &
willingness
3. Ensures better use of HR- makes them
more productive
4. Reduces labour absenteeism and labour
turnover
5. Motivation- boosts their morale
6. Prepares them for more challenging jobs-
helps them grow
Benefits
7. Encourages them to make use of their full
potentials- helps in succession planning
8. Leads to higher excellence & organisational
development
9. Makes recruitment, selection and placement
more systematic
10. Helps in designing suitable training programmes
that help employees in achieving their career
goals
Succession Planning
Succession planning is a process of identifying and
developing new leaders who can
Replace old leaders/employees when they leave,
retire, die, get transferred or promoted.
A succession plan involves identification of vacancies
that are likely to occur at higher levels and locating
the probable successors
The successor can be from within or outside the
organisation
Importance of Succession Planning

1. Helps to groom the successors systematically

2. Protects the company from any future shock or
disturbance
3. Facilitates the continuity in the organisation
4. Crates a talent pool
5. Acts as a motivator and morale booster
6. Helps in employee retention- reduces attrition
7. Ensures employee commitment and loyalty
Transfer and Promotion

A horizontal or lateral shifting of an employee

“a lateral shift causing movement of

individuals from one position to another
usually without involving any marked change
in duties, responsibilities, skills needed or
compensation” – Dale Yoder and others
Transfer
• Transfer may be initiated by the employer or an
employee
• May be within the same departments or across
departments
• May be in the same locations or at different
locations
• May be temporary or permanent
Objectives of Transfer
1) To meet organisational needs- due to changes in
technology, volume of production, org structure,
etc
2) To adjust the surplus workforce
3) To better utilise employees- employer feels that
they can be better utilised elsewhere
4) To make employees more versatile- widen their
knowledge- it is a kind of training for them
Objectives of Transfer
5) To satisfy employee needs or demands-
may be due to personal, health or social
issues
6) To provide relief- from boredom or
monotony
7) To avoid inter-personal conflicts
8) To punish the arrogant employees
Promotion- Meaning & Benefits
A vertical upward movement of an
employee
‘the upward movement of an
employee to the job or position
that involves greater authority &
responsibilities, higher status and
better pay package with better
working conditions’
Benefits of Promotion
1. Recognition of employee’s performance, commitment
2. Motivates them- morale booster- job satisfaction
3. Retains talented and meritorious employees
4. Makes other employees to compete and excel
5. Fulfils their career development needs & aspirations
6. Better utilises the skills and knowledge of employees
7. Attracts competent talents from outside
8. Enhances corporate image- as a better employer
Bases of Promotion: Seniority vs. Merit
Seniority implies a length of service of an employee
in the same organisation
Merit implies the knowledge, skills and performance
of an employee
Both have their own advantages and limitations
Many organisations combine both the methods
 Seniority vs. Merit Bases of Promotion

Seniority - as the basis Merit- as the basis

1) Simple and easy method- simple 1) Comparatively difficult- no fixed
criteria- length is counted criteria

2) Favoured by employees and 2) Opposed by them

their unions

3) No chances of bias/favouritism 3) Scope for bias/favouritism

4) Retains loyal employees 4) Loyal employees may leave
5) Higher satisfaction to seniors 5) Discourages talented and
meritorious employees- may leave
 Seniority vs. Merit Bases of Promotion
Seniority – as the basis
6) Employees may become lazy- no
motivation to learn more and
improve
7) Organisational efficiency suffers
8) No attraction for young and bright
employees
9) Organization‘s image suffers as a
good and progressive employer
10) Found in government jobs and
PSUs
Merit – as the basis
6) Constant improvement and
competition among talented people
7) Improves organisational efficiency
8) Attracts talented candidates
9) Better image of the organisation in
employment market
10) Most common in private sector
Compensation Management

“If you pick the right people and give them

the opportunity to spread their wings - and
put compensation and rewards as a carrier
behind it - you almost don’t have to
manage them”

-Jack Welch
 Compensation

Compensation is defined as
‘the total amount of the monetary and non-
monetary pay provided to an employee by an
employer in return for work performed as
required’
Essentially, it's a combination of the value of
your pay, vacation, bonuses, health insurance,
and any other perk you may receive, such as
free lunches, free events, and parking
Compensation Management

‘the practice of the organization that involves

giving monetary as well as non-monetary
rewards to the employees, in order to
compensate for the time they allocate to their
job’

It is responsible for ensuring that salary and

bonuses remain competitive and benefit
programs change with the needs of the
workforce
 Factors influencing Wages & Salaries
1. Demand & Supply of Employees (Labour)
2. Ability of the Employer
3. Might of the Trade Unions
4. Cost of living
5. Government’s Laws- minimum wage
regulations
6. Prevailing Wage and Salary Rates
7. Nature and Place of Job- skills, qualifications,
risks, etc
8. Productivity - labour productivity
Time and Piece Wage Payment Systems
Time Wage Payment System is
‘the system in which the wages are paid on the basis of
time spent on the job irrespective of the volume of work
done’
It may be daily, weekly, monthly, etc
Most common method, followed in offices, government
departments, etc
Merits of Time Wage Payment System

1. Simple & Easy method- to understand and

implement
2. Regular & fixed income to employees- no fear of cut
3. Beneficial to new & inexperienced employees
4. No detailed records- less administrative costs
5. Quality of work- no speed-up the work at the cost of
quality
6. Support of employees’ union- no discrimination
among workers
7. Most suitable method for qualitative kind of work
 Limitations of Time Wage Payment System
1)No incentive to most efficient employees- no extra
income
2)Demoralising impact on such employees
3)Makes employees casual and complacent
4)Less work and low productivity
5)More need for supervisors- adds costs
6)It may become an expensive system in such situations
7)No sound basis to find the merit of employees- may
compel employers to follow the seniority as the basis of
promotion which may result into high attrition- efficient
ones may leave
Piece Wage Payment System
Remuneration is based on the volume of work
Payment based on the output or results
Common in cloth making, diamond-cutting
and polishing, etc activities
Merits of Piece Wage Payment System

1.Higher income to fast and efficient employees-

incentive to work
2.Higher production and productivity- no laziness, no
complacency
3.Fair method- those who work hard can earn more
4.Economical to employers
5.No more supervision- reduces supervision costs
6.Merit can be the basis of promotion- those who
perform well can be considered for promotion
Limitations of Piece Wage Payment System
1)Poor quality- due to unnecessary speed- more wastages
2)May result into accidents and injuries- at the cost of
health
3)Jealousy- discrimination among efficient and inefficient
4)Not favoured by employees’ union- weakens their unity
5)Higher administrative costs- keeping of detailed records
6)Difficult to implement when the nature of work is
qualitative- difficult to find out the volume
7)Needs strict quality control- as employees stress more
on quantity and less on quality
Essentials of a Sound Payment System
1. System should be fair to both- employer and
employees
Should be communicated to employees- proper
understanding, Proper negotiations and
acceptance- should be in writing
1. Should be consistent with the Co’s financial planning
& earnings
2. Should be flexible- scope for changes depending the
changing times, situations, circumstances, etc-
should be revised
3. Should not be too difficult to calculate- low
administrative costs
 Module-IV

Dr Kavita Kalkoti
Human Relations,
Talent Management and
Employee Engagement
4.1 Human Relations: Meaning and Significance
4.2 High Potential Employees: Concept and Characteristics-
Development and Retention of High Potential Employees
4.3 Talent Management: Concept and Objectives-Talent
Management Framework
4.4 Employee Engagement: Meaning and Importance-Drivers
and Measurement of Employee Engagement
4.5 Employee Morale: Meaning & factors influencing
4.6 Grievance Handling: Meaning and causes- Grievance
Handling Procedure

2
Chapter Objectives
To make learners acquainted with…

➢The concept and significance of human relations

➢Meaning, development and retention of high potential employees
➢Concept & objectives of talent management and its framework
➢Meaning, importance and drivers of employee engagement-
measurement of employee engagement
➢The concept of employee morale and the factors influencing it
➢Meaning & causes of grievances and the procedure of handling
grievances

3
• https://www.youtube.com/watch?v=py4P8b4t3DI

4
 Human Relations: Meaning & Significance
Simply stated, human relations ‘refer to the interaction of
people in all walks of life- in schools & colleges, homes,
business offices, governments, etc.’

‘Human relations is an area of management practice of fitting

or integrating people into work situations so as to motivate
them to work together harmoniously’

A handout photograph from the German

government shows a group of leaders at
the Group of Seven summit, including
German Chancellor Angela Merkel and
President Trump, in Canada on June 9,
2018. 5
 Significance of
Human Relations

•Improves understanding and relations

•Reduces labour problems: less conflicts
•Helps to understand their attitudes and
behaviour: their influence on the work and
on others
•Useful to reconcile their(employees)
interests/expectations with that of the
employer
6
 Significance of human relations

•Develops better sensitivity in employees

towards others
•Better use of HR: raises productivity
•Higher job satisfaction: higher employee
retention
•Better work environment: team spirit
•Enhances corporate image

7
High Potential Employees (HiPos)
i. Concept and Characteristics
ii. Development and Retention of High Potential
Employees

8
What is meant by ‘Potential’?

• Potential indicates whether someone will be able to succeed in a

bigger role in the future

• It is a person’s ability to grow and to handle responsibilities of

greater scale and scope

• By “greater scale” we mean a job in the same area but with, say, a
larger budget or staff; by “greater scope” we mean a job involving
activities of substantially more breadth and complexity

9
High Potential Employees
concept and characteristics
• High potential employees, aka(also known as) HiPos ‘are that
illustrious(eminent) group of individuals who are the rising
stars in your organization’

• ‘A HiPo Employee is an individual with the ability, aspiration

and engagement to rise to and succeed in more senior,
critical positions’

10
 High Potential Employees
concept
• Simply stated, HiPo Employees are ‘the people who
possess the distinctive skill-sets and motivation
necessary to take their organization to the next level’

• High-potential employees aspire to assume more

responsibilities and are thoroughly engaged with the
work they do

• According to the Harvard Business Review, roughly

5% of any organization’s employees are high-
potential

11
12
High Potential(HiPo) Employees:
Concept

13
Characteristics of HiPo Employees
• Drive(ambition) to excel: desire to go beyond the status
quo(current situation) and excel
• Quest for learning: passion to learn new and more to go beyond
their peers, they develop conceptual ability and see the things in
broader context than their peers
• They listen to feedback: Because they always try to do better,
they love getting feedback- both good and bad and constantly try
to improve
• Positive: They don’t bring negativity to work

14
Characteristics of HiPo Employees

• Extremely talented: they produce consistently great work and

are capable to lead your organization in future
• Assume leadership roles: They possess innate(inborn)
leadership skills and are always looking to put them into
practice and develop them further
• Eager to take additional responsibilities: ready to handle tasks
that they’re not directly responsible for

15
Characteristics of HiPo Employees

• They take initiative: They don’t wait for you to tell them what to
do. They have enterprising spirit and always search for new and
productive ideas & ways of doing
• They don’t buckle under pressure: They remain cool and calm
even when the going gets tough
• Ambitious: They are very vocal about where they see themselves
in the future and what career goals they hope to accomplish

16
Characteristics of HiPo Employees

• They help their co-workers HiPo employees understand that

the success of the organization depends on the efforts of
everyone who works there. They are ready to take some
work-load of their co-workers and lighten their loads
• They recognize and appreciate their co-workers’ hard work

17
Characteristics of HiPo Employees

• They work well in group settings: They understand the

importance of collaboration and working in a group. Because
of supportive nature, they have friends everywhere and can
get along well with everyone
• They are trusted by their peers: HIPOs easily earn the trust
and respect of their peers

18
Characteristics of HiPo Employees

• High level of emotional intelligence: they can easily

understand others and empathise with them
• They live and breathe company’s ethos & culture: They
reinforce the culture with everything they do, which
encourages their peers to do the same. As a result, the office
becomes a more enjoyable place to work and collectively,
they become more productive

19
Development of HiPo Employees
HiPos know their potential and will move to another
organization if they are not recognized, motivated and
challenged
How can organizations identify and cultivate employees with
the potential to be star performers?

The process may include the following steps:

1. Identifying the HiPos
2. Selecting the HiPos
3. Communicate with HiPos
4. Develop the HiPos thoughtfully

20
1. Identifying the HiPos

• HiPos are the star performers, they shine above other

performers
➢Identifying them formally requires that managers recognize
how their behaviors, skills, and attributes differ from others
➢Besides current job performance, HiPos can also be assessed
on the basis of their leadership competencies, job
performance over a period of time, and high-potential criteria

21
2. Selecting the HiPos
• Selection begins either with nomination by the employee’s
immediate supervisor or through the annual appraisal
process
• Employees can also nominate themselves. However, this
practice carries risks as people overestimate their potential
• Use of annual appraisal reports
• Moreover, it can be supplemented by supervisors’
recommendations and other inputs

22
3. Communicate with HiPos

• Don’t ‘hide’ high-potential classifications

• Inform high potentials about their selection, it helps in enhancing
their retention and improving productivity
• It may not be liked by others who are not included, they may be
disappointed and some may even leave the company
• However, if proper care is taken in selecting, it is always better to
be transparent rather than following secrecy

23
4. Develop the HiPos thoughtfully

i) Their development should go beyond formal education

programs and include self-directed learning and other types
of training
ii) A combination of targeted mentoring, coaching, education,
and job experiences achieve considerable impact

24
 4. Develop the HiPos thoughtfully
iii) In addition to performing their regular jobs and stretched
assignments, selected HiPos can be asked to attend a few
months’ training program designed and taught by business-
school faculty, featuring case- studies and contents
❖When the programme ends, they can be given a few
months’ other/foreign assignment, to do a job closely
related to their job at home

25
4. Develop the HiPos thoughtfully

• Make sure you don’t overload people. There is a fine line

between a challenging assignment and an overloading one
iv) Job rotation: a large number of firms use ‘job rotation’ as
the primary strategy to develop high potentials
❖It may include handling a very different set of activities
across divisions, functions, or industries

26
Retention of the HiPos:
through Rewards & Incentives

• Supportive management: The management should be

supportive, communicative, and rewarding
• Recognition: proper of recognition of the HiPos is important;
this can take the form of positive reinforcement, which
allows employees to have a sense of job satisfaction, and can
be good for their self-esteem

27
Retention of the HiPos
• Rewards: HiPos need to be paid tangible rewards to retain them
➢Rewards can be in the form of higher compensation, more
opportunities for career development or special perks
➢Financial incentives are good but should not be excessive
(reference to Maslow’s theory)
➢Compensation is only one part of any reward strategy and
therefore must be properly balanced with the other motivators
like the need for achievement and recognition

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Retention of the HiPos

• Challenging work: HiPos should be given new challenges that

can keep them engaged so they do not become complacent
➢Tough tasks or assignments which allow for possible future
recognition and visibility might constitute such challenges
• Timely promotion: HiPos to be promoted, as the prospect of
career advancement motivates them to strive for a better,
more efficient performance

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4.3 Talent Management (TM)

• Concept and definition

• Objectives of talent management
• Talent management framework

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Talent Management
“Our assets(human capital) walk out of the door each
evening, we have to make sure that they come back the next
morning”

-Narayan Murthy, founder and former chairman of Infosys Ltd.

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Talent Management

•‘Any organisation which does not allow or help

its people to be their best is going to be
doomed’ (certain to fail, die, or be destroyed)
•Employees might not go on strike in such a
situation, but they have the option to leave the
organisation
•Herein lies the importance of ‘Talent
Management’

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Talent Management: concept and definition
Talent is ‘a natural ability to be good at something, especially
without being taught’
E.g. His artistic talents were wasted in his boring job

Synonyms of Talent are:

• Aptitude
• Flair
• Gift (ability) e.g. a gifted player

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Talent Management
• Talent management is ‘an organization's commitment to
recruit, hire, retain, and develop the most talented and
superior employees available in the job market’

• TM is ‘the conscious and deliberate attempt to attract,

engage, develop and retain people with the aptitude and
ability to meet current and future organisational need’

35
 Objectives of Talent Management

1. Talent Attraction
2. Talent Engagement
3. Talent Development (TD)
4. Talent Retention

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Objectives of Talent Management:

1. Talent Attraction

To attract the best talents, one needs to offer…

✓Scope for career advancement
✓learning & development opportunities
✓attractive pay package
✓honest and ethical employer or org.
✓employer branding, etc.

37
Job-seekers look for information about the organisations,
according to a Glassdoor Study of over 1000 respondents

• 76% of job seekers want to know why the company is an attractive

place to work
• 70% of candidates wish to know about the details of
compensation package
• 60% of job seekers want to see an overview of the company's
mission, vision, and values
• 55% of them want basic company details like office locations,
number of employees, and revenue
• 62% of them want details on the benefits package

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2. Talent Engagement

Factors that keep the talent engaged

include…

✓the work that is liked by an

employee which gives him
satisfaction
✓Work environment
✓Leadership that enable people learn
and grow
✓Nurturing: care and fairness in
dealing
✓Rewards & recognition
✓Communication

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 3. Talent Development (TD)
• TD means ‘building the
knowledge, skills and abilities of
others and helping them develop
and achieve their potential so
that the organizations they work
for can succeed and grow.’ To
develop talents, one should do…
• Provide conducive environment
to learn
• Performance evaluation/reviews
• Job rotation, internal transfers &
promotion, career
and succession planning
• Mentoring and counselling
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3. Talent Development (TD)
• Being a role model and sharing what you know
• Reinforcing the belief that what employees do is important
• Emphasising the value of learning
• Acting as coaches
• Using work problems as real-world training opportunities

41
4. Talent Retention:
(things that can be done to retain the talents include…)

✓Selecting employees with matching culture and values

✓On-going education and clear paths to advancement
✓Attractive pay packets: ESOP, etc.
✓Scope for promotions & career growth
✓Job enrichment
✓Openness and transparency
✓Flexi-working hours
✓Work-life balance

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44
Talent Management Framework
includes…
1. Business Environment
2. Business Strategy
3. Talent Strategy
4. Talent Culture
5. Differentiated Capability

6. HR Systems and Processes that includes…

a)Managing demand for talent
b)Performance management
c)Leadership development

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1. Business Environment

Study the environment:

• Macro factors: impact of PESTLE (political, economic, social,
technological, legal or regulatory and geographical/natural)
• SWOT(SWOC) Analysis: it gives an idea as to what kind of
business you are in, what kind of products you produce,
whom do you serve, what kind of services or relationship
your customers expect from you etc.

46
1. Business Environment

• Study of SWOT analysis and trends in external environment

helps to understand their implications on HR Strategy such
as how to hire HR, where to hire from, what kind of HR with
social and cultural background are available
• Fit of HR to your requirements, social, cultural and
behavioural parameters to consider while recruiting, etc.

47
2. Business Strategy
• Develop business strategy based on the study of business
environment
• Helps to decide the emphasis to be given to quality of
products, innovation, branding, distribution, on-time
delivery, relationship with customers, etc.
• Decision on the above aspect helps to frame an appropriate
business strategy

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3. Talent Strategy

• Design an appropriate talent strategy that would help to

achieve your business strategy and its goals
• Find out the talent possessed by your existing HR if any and
decide the kind of talents you would require to meet your
strategic goals
• This would help you to frame your recruitment & selection,
development and compensation policies

49
Talent strategy contains the following three
directives…
A. Cultivate the Super-keeper: this involves identification,
selection, development and retention of super-keepers who
are the small number of HiPos
• They serve as super achievers and provide inspiration to
others

• They contribute greatly in the success of the organisation

50
Talent strategy contains the following three
directives…
B. Retain Key Positions Backups: this directive involves an
identification and development of high quality replacements
for a small number of key positions for current and future
success of the org.
• Identify the gaps and try to fill the gaps with those who have
shown excellent performance and can act as the role models
for other employees

51
Talent strategy contains the following three
directives…
C. Appropriately allocate training & development, education,
rewards, etc.
The organisation needs to make heavy investments in the
above two directives (A & B)
Talent strategy should clearly mention about the caring and
nurturing of above two category-employees and what should
be done by the organisation for that

52
4. Talent Culture

• It is a culture developed by the company that includes

values, beliefs, behaviours and environment required to
attract, engage and retain the committed and
competent/talented employees
• Companies should create enabling cultural environment and
their top executives must be the first to adapt and follow
• Must get reflected in companies’ practices and processes

53
5. Differentiated Capability or Competency
Management

• Companies need to understand & identify different

capabilities/competencies in employees to sustain the
existing performance and achieve better future performance
• Companies must encourage people with such capabilities,
support people with new ideas and innovative practices
• Their recruitment, selection and retention policies must be
designed and managed accordingly

54
6. HR Systems and Processes

Designing the enabling HR systems and processes that

cultivates the talent management
This may include…
a)Managing demand for talent
b)Performance management
c)Leadership development

55
a) Managing demand for talent

• It includes procuring talented employees and developing

their skills and potential
• May also involve outsourcing the required talents: taking
talented people on contract or consultancy basis rather than
insisting on having the permanent staff
➢The recent survey shows that nearly 30% of world’s best
talented staff work on contract
➢E.g. many top ranked management institutes have visiting
faculties

56
b) Performance Management

• Companies should have the robust (strong and healthy)

performance management system that will identify the true
talents through proper performance appraisal mechanisms
• Develop the culture of nurturing such talents identified:
make use of both financial and non-financial incentives

57
c) Leadership Development

• Talent management goes beyond the performance management

and talks about potential appraisal
• Finding the right potential at an early stage and putting such
employees in higher positions before their expectations
• LEAP (Leadership Excellence through Accelerated Programme) is
one such practice that identifies people’ potential at an early
stage and put them in some kind of leadership positions to
develop them into future leaders

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4.4 Employee Engagement

• Meaning and definition

• Importance/benefits
• Drivers of employee engagement
• Measurement of employee engagement

59
Employee Engagement
meaning and definition

• Employee engagement isn’t about keeping your employees

busy or engaged in their work
• Engagement refers to ‘emotional connection an employee
feels towards his or her work and organization’
• It is an approach to ‘creating a workplace environment
where employees care for what they do’

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 Employee Engagement
meaning and definition
• In other words, the employees “feel engaged"
• Here the term “engaged” has a philosophical approach
rather than a traditional or mechanical one
• And just like Steve Jobs (former chairman, CEO, and co-
founder of Apple Inc.) said, “The only way to do a great job is
to love what you do”

61
Employee Engagement
meaning and definition

• Employee engagement is ‘the extent to which

employees feel passionate about their jobs, are
committed to the organization, and put
discretionary (unrestricted) effort into their work’

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Employee Engagement
meaning and definition
• Employee engagement is ‘the emotional commitment the
employee has to the organization and its goals’
• This emotional commitment means engaged employees
actually care about their work and their company
• They don't work just for salary, or just for the next
promotion, but work on behalf of the organization's goals

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Importance(benefits) of Employee Engagement

1.Higher productivity: due to greater involvement, better

work quality and higher profits
2.More energetic work environment: higher passion and
commitment from employees
3.Higher levels of creativity and innovation
4.Higher employee retention: greater sense of employee
loyalty

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 Importance(benefits) of Employee Engagement

5. Improves recruitment & selection: reduces such costs

6. Better quality of goods and services: higher consumer
satisfaction and loyalty
7. Enhances corporate image: such employees act as the
brand ambassadors
8. Ensures sustained and long-term business growth

67
Drivers of Employee Engagement

• What drives employees to remain engaged and do better?

There can be both…
❖Rational elements, and
❖Emotional elements

68
Drivers of Employee Engagement

Research conducted by
The Conference Board identified 26 common drivers
of engagement amongst 12 leading engagement
research companies:
Eight common drivers of them

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Drivers of Employee Engagement

1.The work and its environment: stimulating job, interesting

and challenging work. A supportive work environment and
culture with enabling facilities, processes, equipments,
work-life balance, etc.
2.Strong leadership: honest and transparent top
management. How well do managers communicate and
‘walk the talk‘ (practice what they preach)

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 Drivers of Employee Engagement

3. Employee development. Training and development

facilities to develop the employee’s skills
4. Career growth opportunities: career opportunities for
growth and opportunities to contribute. Whether their
ideas are accepted and heard by the management?

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 Drivers of Employee Engagement
5. Relationship with one’s manager/senior: Do employees value
relationships with managers, and is there trust and credibility
between them? This creates trust and integrity
6. Alignment between employee performance and company
performance: Do employees understand how their work
contributes to the company’s performance? It should be in
the same direction (unity of objectives or direction- Henri
Fayol’s principle)

72
 Drivers of Employee Engagement

7. Nature of co-workers/team members: How much

influence do they exert on the employee’s level of
engagement. How good and supportive they are
8. Pride about the company: How much self-esteem do the
staff feel the company they work for? Do they feel pride?

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Measurement of Employee Engagement

• How to measure or find out whether employees are

truly engaged or not?
• What are the common yardsticks to measure?

74
Measurement of Employee Engagement:
Some common yardsticks
1. Feedback: Employee engagement survey This is a quick
and effective way to conduct a poll of employees about
their commitment to their work and perception of the
company
2. Hold One-to-One Meetings: managers and the HR
department should conduct individual meetings with
employees on a monthly, quarterly or yearly basis
basically to listen to the employees- give them confidence
to speak- up

75
Measurement of Employee Engagement:
Some common yardsticks
3. Hold small group discussions: meet employees from the
same departments to discuss their team’s successes and
challenges, or assemble a group of employees from across
the company to share their honest feedback
4. Conduct ‘Stay’ Interviews: why they hang on? What
makes them to stay on?
5. Conduct Exit Interviews: it brings an honest feedback
about the company and its pitfalls or downsides

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4.5 Employee Morale:
Meaning and factors influencing morale

• Morale means ‘state of discipline and spirit, attitude, state of

mind, as expressed in action’-Oxford Dictionary
• ‘the amount of confidence felt by a person or group of
people’-Cambridge Dictionary
• Edwin Flippo, “Morale is a mental condition or attitudes of
individuals and groups which determines their willingness to
cooperate”

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Employee Morale-
Importance higher morale results into…

1. Higher performance and productivity

2. Better quality of work/output
3. Higher discipline and commitment
4. Better attention & interest: fewer mistakes & accidents by
employees
5. Low attrition/employee turnover
6. Cordial relations & team spirit
7. Higher growth
8. Better corporate image

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Factors influencing morale

1. Interesting work
2. Good working conditions
3. Quality of leadership and supervision
4. Progressive management policies
5. Adequate motivation: both monetary & non-monetary
factors
6. Interpersonal relations
7. Personal factors

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One can find employees’ morale by asking questions on the
following…

1. Recognition: whether their work gets recognised

2. Happiness: level of happiness
3. Relationship with peers
4. Relationship with managers
5. Personal Growth: scope available
6. Alignment: with company’s culture/values
7. Satisfaction: extent of job satisfaction
8. Wellness:
9. Ambassadorship: mouth publicity

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4.6 Grievance Handling

i. Meaning and causes of grievances

ii. Grievance handling procedure

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Grievance- meaning

• Synonyms: problem, complaint, criticism, protest,

objection, protestation, charge, grumble, (shikayat/takrar,
fariyad in regional languages)
• ‘a feeling of resentment over something believed to be
wrong or unfair’
• ‘an official statement of a complaint over something
believed to be wrong or unfair’

82
Grievance: definition

• Dale Beach, “Grievance is any dissatisfaction or

feeling of injustice in connection with one’s
employment situation that is brought to the notice
of the management”

83
Grievance: main causes/reasons

1. Related to working conditions

2. Related to compensation: salary and wages
3. Related to management’s policy and attitudes
4. Related to welfare policies
5. Related to violation of certain agreements
6. Related to personal reasons: such as too much of ego,
over-ambition, excessive self-esteem, etc.

84
Grievance procedure: steps

85
Grievance procedure: steps

• A grievance procedure is a means of internal dispute

resolution mechanism by which an employee may have his or
her grievances addressed
• Collective bargaining agreements include procedures for filing
& resolving it
• Grievance processes may differ from employer to employer
and under various collective bargaining agreements
• However, most will have certain general processes in
common

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Grievance procedure: steps

1.Grievances are brought to the employee’s immediate

supervisor
❑This may be either an informal process or the beginning of
the formal process
❑Generally, the grievance needs to be submitted in writing
using a grievance form and the submission should be done
within a specified timeframe following the event or incident

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 Grievance procedure: steps
Three possible outcomes may occur at this stage of the
process:
• The supervisor and the union representative may determine
that no valid grievance exists
• The grievance may be resolved
• The grievance may not be resolved to the employee’s
satisfaction, and it will move forward to the next step in the
process

88
Grievance procedure: steps

2.The next step involves the next level of supervisor in the

company’s hierarchy. In most union environments, the
employee will be represented by the union. A failure to
resolve the grievance will lead to the next step where it is
reported to the next level in the hierarchy
3.The third step in the process will lead to a review by a
higher level of company management and potentially a
higher-level union representative

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Grievance procedure: steps

4.If the grievance remains unresolved, ultimately it reaches

the highest levels
5.If the grievance remains unresolved through the highest
levels of management within the company, many procedures
include a provision by which an outside arbitrator may be
called in to resolve the issue
❑Senior leaders from both sides are typically involved in the
arbitration process

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 Grievance procedure: steps

• An effective grievance procedure provides employees with a

mechanism to resolve issues of concern
• The grievance procedure may also help employers correct
issues before they become serious issues or result in
litigation

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