SVCE TIRUPATI

COURSE MATERIAL

SUBJECT MANAGEMENT SCIENCE (15A52601)

UNIT 3

COURSE B.TECH

DEPARTMENT CSE

SEMESTER 4-1

Mrs E Supriya
PREPARED BY
Assistant Professor
(Faculty Name/s)

Version V-5

PREPARED / REVISED DATE 19-12-2020

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TABLE OF CONTENTS – UNIT 1

S. NO CONTENTS PAGE NO.
1 COURSE OBJECTIVES 1
2 PREREQUISITES 1
3 SYLLABUS 1
4 COURSE OUTCOMES 1
5 CO - PO/PSO MAPPING 1
6 LESSON PLAN 2
7 ACTIVITY BASED LEARNING 2
8 LECTURE NOTES 2
3.1 INTRODUCTION 2
3.2 FUNCTIONS OF HUMAN RESOURCE MANAGEMENT 3
3.3 HUMAN RESOURCES PLANNING 5
3.4 RECRUITMENT 7
3.5 SELECTION 8
3.6 EMPLOYEE TRAINING 9
3.7 PERFORMANCE APPRAISAL 11
3.8 WAGE AND SALARY ADMINISTRATION 14
3.9 GRIEVANCE HANDLING 16
9 PRACTICE QUIZ 17
10 ASSIGNMENTS 18
11 PART A QUESTIONS & ANSWERS (2 MARKS QUESTIONS) 19
12 PART B QUESTIONS 20
13 SUPPORTIVE ONLINE CERTIFICATION COURSES 21
14 REAL TIME APPLICATIONS 22
15 CONTENTS BEYOND THE SYLLABUS 22
16 PRESCRIBED TEXT BOOKS & REFERENCE BOOKS 23
17 MINI PROJECT SUGGESTION 23

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1. Course Objectives
The objectives of this course is to
1. To understand the differences Between Management and Administration.
2. To Know about Leadership qualities & Motivational & Organizing Techniques.
3. To Introduce about HR Management techniques.
4. To Know about Project Management Techniques.
5. To Inculcate SWOT Analysis Techniques

2. Prerequisites
Students should have knowledge on
1. Understand Corporate Selection Process,
2. Pay Scales Patterns

3. Syllabus
UNIT III
Human Resource Management (HRM): Significant and Basic functions of HRM -
Human Resource planning(HRP), Job evaluation, Recruitment and Selection,
Placement and Induction -Wage and Salary administration. Employee Training and
development -Methods - Performance Appraisal -Employee Grievances -techniques
of handling Grievances.

4. Course outcomes
1. Apply the knowledge of Recruitment & Selection during the campus drives.
2. Identify pay Structures & Pay Scales, Training Methods used by MNCs.
3. Illustrate Performance appraisal methods.
4. Evaluate Selection Methods & Techniques by MNCs.
5. Explain the principles of Job Evaluation, Wage Fixation methods.

5. Co-PO / PSO Mapping

Machine
PO1 PO2 PO3 PO4 PO5 PO6 PO7 PO8 PO9 P10 PO11 PO12 PSO1 PSO2
Tools
CO1 3 3 2 2

CO2 3 3 2 2

CO3 3 3 2 2

CO4 3 3 2 2

CO5 3 3 2 2

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6. Lesson Plan

Lecture No. Weeks Topics to be covered References

1 HRM: Meaning & Functions T1

2 Human Resource Planning (HRP) T1, R1

1
3 Job evaluation T1, R1

4 Job evaluation Techniques T1, R1

5 Recruitment: Meaning& Sources T1, R2

6 Selection process T1, R1

2
7 Placement and Induction T1, R1

8 Wage and Salary administration T1, R1

9 Employee Training and development T1, R1

3
10 Performance Appraisal T1, R1

11 Employee Grievances: Meaning, Causes & Handling process T1, R1

12 Discussion of Objective type and Topics beyond the syllabus T1, R1

7. Activity Based Learning

1. G Case- studies
2. Role-Play on Employee Grievance Handling
8. Lecture Notes
3.1 INTRODUCTION
Before we define HRM, it seems pertinent to first define the term ‘human resources’.
In common parlance, human resources means the people. However, different
management experts have defined human resources differently. For example,
Michael J. Jucius has defined human resources as “a whole consisting of inter-
related, inter-dependent and interacting physiological, psychological,
sociological and ethical components”.

3.2 FUNCTIONS OF HUMAN RESOURCE MANAGEMENT(HRM)

3.2.1 Definitions of HRM:
In simple words, HRM is a process of making the efficient and effective use of
human resources so that the set goals are achieved. Let us also consider some
important definitions of HRM.
According to Flippo “Personnel management, or say, human resource
management is the planning, organizing, directing and controlling of the
procurement, development, compensation, integration, maintenance, and
separation of human resources to the end that individual, organizational and
social objectives are accomplished”.
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Objectives of HRM:
The primary objective of HRM is to ensure the availability of right
people for right jobs so as the organizational goals are achieved effectively. This
primary objective can further be divided into the following sub-objectives:
1. To help the organization to attain its goals effectively and efficiently by providing
competent and motivated employees.
2. To utilize the available human resources effectively.
3. To increase to the fullest the employee’s job satisfaction and self-actualization.
4. To develop and maintain the quality of work life (QWL) which makes employment
in the organization a desirable personal and social situation.
5. To maintain ethical policies and behavior inside and outside the organization.
6. To establish and maintain cordial relations between employees and
management.
7. To reconcile individual/group goals with organizational goals.

3.2.2 Functions of HRM:

Managerial Functions of Human Resource Management is as follows:

1. Human Resource Planning - In this function of HRM, the number and type of
employees needed to accomplish organizational goals is determined. Research
is an important part of this function. Research means information collected and
analyzed to identify current and future human resource needs and to forecast
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changing values, attitude, and behavior of employees and their impact on
organization.
2. Organizing - In an organization tasks are allocated among its members,
relationships are identified, and activities are integrated towards a common
objective. Relationships are established among the employees so that they can
collectively contribute to the attainment of organizational goals.
3. Directing - Activating employees at different level and making them contribute
maximum to the organization is possible through proper direction and
motivation. Taping the maximum potentialities of the employees is possible
through motivation and command.
4. Controlling - After planning, organizing, and directing, the actual performance of
employees is checked, verified, and compared with the plans. If the actual
performance is found deviated from the plan, control measures are required to
be taken.

The Operative Functions of Human Resource Management are as follows:

1. Recruitment and Selection - Recruitment of candidates is the function preceding
the selection, which brings the pool of prospective candidates for the
organization so that the management can select the right candidate from this
pool.
2. Job Analysis and Design - Job analysis is the process of describing the nature of a
job and specifying the human requirements like qualification, skills, and work
experience to perform that job. Job design aims at outlining and organizing
tasks, duties, and responsibilities into a single unit of work for the achievement of
certain objectives.
3. Performance Appraisal - Human resource professionals are required to perform this
function to ensure that the performance of employee is at acceptable level.
4. Training and Development - This function of human resource management helps
the employees to acquire skills and knowledge to perform their jobs effectively.
Training an development programs are organized for both new and existing
employees. Employees are prepared for higher level responsibilities through
training and development.
5. Wage and Salary Administration – Wage and Salary Administration determines
what is to be paid for different type of jobs. It decides employees
compensation which includes -wage administration, salary administration,
incentives, bonuses, fringe benefits, and etc.
6. Employee Welfare - This function refers to various services, benefits, and facilities
that are provided to employees for their well being.
7. Maintenance - Human resource is considered as asset for the organization.
Employee turnover is not considered good for the organization. Human
resource management always try to keep their best performing employees with
the organization.

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8. Labor Relations - This function refers to the interaction of organization with
employees who are represented by a trade union. Employees come together
and form a union to obtain more voice in decisions affecting wage, benefits,
working condition, etc.
9. Personnel Research - Personnel researches are done by human resource
management to gather employees' opinions on wages and salaries,
promotions, working conditions, welfare activities, leadership, etc,. Such
researches helps in understanding employees satisfaction, employees turnover,
employee termination, etc,.
10. Personnel Record - This function involves recording, maintaining, and retrieving
employee related information like - application forms, employment history,
working hours, earnings, employee absents and presents, employee turnover
and other data related to employees.

3.3 HUMAN RESOURCES PLANNING

Human resource is the most important asset of an organization. Human
resources planning are the important managerial function. It ensures the right
type of people, in the right number, at the right time and place, who are
trained and motivated to do the right kind of work at the right time. The
enterprise will estimate its manpower requirements and then find out the
sources from which the needs will be met. If required manpower is not available
then the work will suffer. Developing countries are suffering from the shortage of
trained managers. Job opportunities are available in these countries but
properly trained personnel are not available. These countries try to import
trained skill from other countries. In order to cope human resource requirements,
an enterprise will have to plan in advance its needs and the sources. The terms
human resource planning and manpower planning are generally used
interchangeably.
3.3.1 Features of Human Resource Planning:
1. Well Defined Objectives: Enterprise’s objectives and goals in its strategic
planning and operating planning may form the objectives of human resource
planning. Human resource needs are planned on the basis of company’s goals.
Besides, human resource planning has its own objectives like developing human
resources, updating technical expertise, career planning of individual
executives and people, ensuring better commitment of people and so on.
2. Determining Human Resource needs: Human resource plan must incorporate
the human resource needs of the enterprise. The thinking will have to be done
in advance so that the persons are available at a time when they are required.
For this purpose, an enterprise will have to undertake recruiting, selecting and
training process also.
3. Keeping Manpower Inventory: It includes the inventory of present manpower
in the organization. The executive should know the persons who will be
available to him for undertaking higher responsibilities in the near future.
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4. Adjusting Demand and Supply: Manpower needs have to be planned well in
advance as suitable persons are available in future. If sufficient persons will not
be available in future then efforts should be .made to start recruitment process
well in advance. The demand and supply of personnel should be planned in
advance.
5. Creating Proper Work Environment: Besides estimating and employing
personnel, human resource planning also ensures that working conditions are
created. Employees should like to work in the organization and they should get
proper job satisfaction.

3.3.2 JOB ANALYSIS

Job Analysis is a primary tool to collect job-related data. The process results in
collecting and recording two data sets including job description and job
specification. Any job vacancy cannot be filled until and unless HR manager
has these two sets of data. It is necessary to define them accurately in order to
fit the right person at the right place and at the right time. This helps both
employer and employee understand what exactly needs to be delivered and
how.

Job Description
Job description includes basic job-related data that is useful to advertise a specific
job and attract a pool of talent. It includes information such as job title, job
location, reporting to and of employees, job summary, nature and objectives of
a job, tasks and duties to be performed, working conditions.
Job Specification
Also known as employee specifications, a job specification is a written statement of
educational qualifications, specific qualities, level of experience, physical,
emotional, technical and communication skills required to perform a job,
responsibilities involved in a job and other unusual sensory demands.

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3.4 Recruitment
3.4.1 Definition of Recruitment: Finding and Attracting Applications
“Recruitment is the Process of finding and attracting capable applicants for
employment. The Process begins when new recruits are sought and ends when
their applications are submitted. The result is a pool of application from which
new employees are selected.”
3.4.2 Meaning of recruitment:
Recruitment is understood as the process of searching for and obtaining applicants
for jobs, from among them the right people can be selected. Though theoretically
recruitment process is said to end with the receipt of applications, in practice the
activity extends to the screening of applications so as to eliminate those who are not
qualified for the job.
3.4.3 Sources of Recruitment:

Internal Sources of Recruitment

Internal sources of recruitment refer to seeking the employees from within the
organization to fill up the vacant position.
Internal recruitment can be done through the following means:
(a) Previous Applicants: To fill up the immediate openings, calling up or emailing the
candidates who have previously applied to the organization is the cheapest
and quickest source of recruitment.
(b) Present Employees: The recruiter can exercise promotion (to a higher position) or
transfer (inter-department or inter-branch transfer) of the current employees
instead of recruiting the new employees.
(c) Employee Referrals: Sometimes, the organization hires the candidates referred by
the existing employees assuming that such candidates are more trustworthy and
reliable.
(d) Former Employees: Some organizations provide for an option of re-joining to its ex-
employees. They even consider the retired employees who are willing to give
their full time or part-time services to the organization.
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External Sources of Recruitment:
External sources of recruitment signify the hiring of those employees who have never
been associated with the organization before.
Following are the various external sources through which theorganization acquire
new resources:
(a)Advertisements: The organization advertises the job openings in the newspaper,
media, company’s bulletin, social networking sites (Facebook, LinkedIn, Twitter),
job portals, etc.
(b) Campus Recruitment: The organization collaborates with the educational
institutes and colleges to hire their students for the available job vacancies, by
conducting the recruitment process in the respective college campus.
(c)E-Recruitment: The organization uses the web-based software as a source of
recruitment involving electronic screening of candidates, online skill test, online
profile checks and interviews on video-conferencing.
(d) Employment Exchange: The organization gets itself registered with the
employment exchange, i.e. a government-affiliated agency who have a
database of many prospective candidates. These candidates register with such
employment exchanges in search of better job opportunities.
(e)Outsourcing Consultancies: Some private consultancies are professionally working
to recruit employees on behalf of the organization. The organization hires such
consultants on a commission basis to acquire the desired human resource.
(f) Walk-ins and Write-ins: The organizations without any effort, get random
applications when the job seekers submit their CV. Either by visiting the
organization, posting the letter with CV or mailing the CV on the company’s
mail id.
(g) Contractors: The organization hires a contractor who provides casual workers
temporarily, especially for a particular project, and such workers have no
existence in the company’s records.

3.5 SELECTION:
3.5.1Meaning: Employee Selection is the process of putting right men on right job. It is
a procedure of matching organizational requirements with the skills and
qualifications of people.
Effective selection can be done only when there is effective matching. By selecting
best candidate for the required job, the organization will get quality
performance of employees. Moreover, organization will face less of
absenteeism and employee turnover problems. By selecting right candidate for
the required job, organization will also save time and money. Proper screening
of candidates takes place during selection procedure. All the potential
candidates who apply for the given job are tested.
3.5.2. Selection Process:
The Employee selection Process takes place in following order-

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(a) Preliminary Interviews- It is used to eliminate those candidates who
do not meet the minimum eligibility criteria laid down by the
organization. The skills, academic and family background,
competencies and interests of the candidate are examined during
preliminary interview. Preliminary interviews are less formalized and
planned than the final interviews. The candidates are given a brief up
about the company and the job profile; Preliminary interviews are
also called screening interviews.
(b) Application blanks- The candidates who clear the preliminary
interview are required to fill application blank. It contains data record
of the candidates such as details about age, qualifications, reason
for leaving previous job, experience, etc.
(c) Written Tests- Various written tests conducted during selection
procedure are aptitude test, intelligence test, reasoning test,
personality test, etc. These tests are used to objectively assess the
potential candidate. They should not be biased.
(d) Employment Interviews- It is a one to one interaction between the
interviewer and the potential candidate. It is used to find whether the
candidate is best suited for the required job or not. But such interviews
consume time and money both.
(e) Medical examination- Medical tests are conducted to ensure
physical fitness of the potential employee. It will decrease chances of
employee absenteeism.
(f) Appointment Letter- A reference check is made about the
candidate selected and then finally he is appointed by giving a
formal appointment letter.
3.6. Training Methods
3.6.1. Meaning of Training: According to Edwin B. Flippo, “Training is the act of
increasing the knowledge and skill of an employee for doing a particular job.” It
is a short-term process utilizing a systematic and organized procedure by which
non-managerial personnel learn technical knowledge and skills for a definite
purpose.

3.6.2. Training Methods:

A large variety of methods of training are used in business. Even within one
organization different methods are used for training different people. All the
methods are divided into two classifications:
3.6.2.1 On-the-job Training Methods: Under these methods new or inexperienced
employees learn through observing peers or managers performing the job and
trying to imitate their behavior. These methods do not cost much and are less
disruptive as employees are always on the job, training is given on the same
machines and experience would be on already approved standards, and

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above all the trainee is learning while earning. Some of the commonly used
methods are:
1. Coaching
2. Mentoring
3. Job Rotation
4. Job Instruction Technique
5. Apprenticeship
6. Understudy
1. Coaching: Coaching is a one-to-one training. It helps in quickly identifying the
weak areas and tries to focus on them. It also offers the benefit of transferring
theory learning to practice. The biggest problem is that it perpetrates the
existing practices and styles. In India most of the scooter mechanics are trained
only through this method.
2. Mentoring: The focus in this training is on the development of attitude. It is used for
managerial employees. Mentoring is always done by a senior inside person. It is
also one-to- one interaction, like coaching.
3. Job Rotation: It is the process of training employees by rotating them through a
series of related jobs. Rotation not only makes a person well acquainted with
different jobs, but it also alleviates boredom and allows to develop rapport with
a number of people. Rotation must be logical.
4. Job Instructional Technique: It is a Step by step (structured) on the job training
method in which a suitable trainer (a) prepares a trainee with an overview of
the job, its purpose, and the results desired, (b) demonstrates the task, (c) allows
the trainee to show the demonstration on his or her own, and (d) follows up to
provide feedback and help. The trainees are presented the learning material in
written.
5. Apprenticeship: Apprenticeship is a system of training a new generation of
practitioners. This method of training is in vogue in those trades, crafts and
technical fields in which a long period is required for gaining proficiency. The
trainees serve as apprentices to experts for long periods. They have to work in
direct association with and also under the direct supervision of their masters. The
object of such training is to make the trainees all-round craftsmen. It is an
expensive method of training. Also, there is no guarantee that the trained
worker will continue to work in the same organization after securing training. The
apprentices are paid remuneration according the apprenticeship agreements.
6. Understudy: In this method, a superior gives training to a subordinate as his
understudy like an assistant to a manager or director (in a film). The subordinate
learns through experience and observation by participating in handling day to
day problems. Basic purpose is to prepare subordinate for assuming the full
responsibilities and duties.
3.6.2.2 Off-the-Job Training Methods: Off-the-job training methods are conducted in
separate from the job environment, study material is supplied, there is full

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concentration on learning rather than performing, and there is freedom of
expression. Important methods include:
1. Lectures and Conferences
2. Vestibule Training
3. Simulation Exercises
4. Sensitivity Training
1. Lectures and Conferences: Lectures and conferences are the traditional and
direct method of instruction. Every training programme starts with lecture and
conference. It’s a verbal presentation for a large audience. However, the
lectures have to be motivating and creating interest among trainees. The
speaker must have considerable depth in the subject.
2. Vestibule Training: Vestibule Training is a term for near-the-job training, as it offers
access to something new (learning). In vestibule training, the workers are
trained in a prototype environment on specific jobs in a special part of the
plant. An attempt is made to create working condition similar to the actual
workshop conditions. After training workers in such condition, the trained
workers may be put on similar jobs in the actual workshop. This enables the
workers to secure training in the best methods to work and to get rid of initial
nervousness.
3. Simulation Exercises: Simulation is any artificial environment exactly similar to the
actual situation. There are four basic simulation techniques used for imparting
training: management games, case study, role playing, and in-basket training.
(a) Management Games: Properly designed games help to ingrain thinking habits,
analytical, logical and reasoning capabilities, importance of team work, time
management, to make decisions, communication and leadership capabilities.
Use of management games can encourage novel, innovative mechanisms for
coping with stress. Management games orient a candidate with practical
applicability of the subject. These games help to appreciate management
concepts in a practical way.
(b) Case Study: Case studies are complex examples which give an insight into the
context of a problem as well as illustrating the main point. Case Studies are
trainee centered activities based on topics that demonstrate theoretical
concepts in an applied setting.
(c) Role Playing: Role playing is defined as pretending to be someone else or
pretending to be in a specific situation that you are not actually in at the time.
The acting out or performance of a particular role, either consciously (as a
technique in psychotherapy or training) or unconsciously, in accordance with
the perceived expectations of society as regards a person's behavior in a
particular context.
(d) In-basket training: In-basket exercise, also known as in-tray training, consists of a
set of business papers which may include e-mail SMSs, reports, memos, and
other items. Now the trainer is asked to prioritize the decisions to be made
immediately and the ones that can be delayed.
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4. Sensitivity Training: Sensitivity training is also known as laboratory or T-group
training. This training is about making people understand about themselves and
others reasonably, which is done by developing in them social sensitivity and
behavioral flexibility. It is ability of an individual to sense what others feel and
think from their own point of view. It reveals information about his or her own
personal qualities, concerns, emotional issues, and things that he or she has in
common with other members of the group. It is the ability to behave suitably in
light of understanding.
3.7 PERFORMANCE APPRAISAL
3.7.1 Performance Appraisal: “It is a systematic evaluation of an individual with
respect to performance on the job and individual’s potential for development.”
3.7.2 Meaning of Performance Appraisal: Performance Appraisals is the assessment
of individual’s performance in a systematic way. It is a developmental tool used
for all round development of the employee and the organization. The
performance is measured against such factors as job knowledge, quality and
quantity of output, initiative, leadership abilities, supervision, dependability, co-
operation, judgment, versatility and health. Assessment should be confined to
past as well as potential performance also. The second definition is more
focused on behaviors as a part of assessment because behaviors do affect job
results.
3.7.3 Use of Performance Appraisals
1. Promotions
2. Confirmations
3. Training and Development
4. Compensation reviews
5. Competency building
6. Improve communication
7. Evaluation of HR Programs
8. Feedback & Grievances
3.7.4 Objectives of Performance Appraisal:
To maintain records in order to determine compensation packages, wage
structure, salaries raises, etc.
• To identify the strengths and weaknesses of employees to place right men
on right job.
• To maintain and assess the potential present in a person for further growth
and development.
• To provide a feedback to employees regarding their performance and
related status.
• It serves as a basis for influencing working habits of the employees.
• To review and retain the promotional and other training programmes.
3.7.5 Methods of Performance Appraisal:

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Ranking Method: It is the oldest and simplest formal systematic method of

performance appraisal in which employee is compared with all others for the
purpose of placing order of worth. The employees are ranked from the highest
to the lowest or from the best to the worst.
Paired Comparison:
In this method, each employee is compared with other employees on one- on one
basis, usually based on one trait only. The rater is provided with a bunch of slips
each coining pair of names, the rater puts a tick mark against the employee
whom he insiders the better of the two.
Forced Distribution Method:
This method was evolved by Tiffen to eliminate the central tendency of rating most
of the employees at a higher end of the scale. The method assumes that
employees’ performance level confirms to a normal statistical distribution i.e.,
10,20,40,20 and 10 per cent.
Check-List Method:
The basic purpose of utilizing check-list method is to ease the evaluation burden
upon the rater. In this method, a series of statements, i.e., questions with their
answers in ‘yes’ or ‘no’ are prepared by the HR department.
Critical Incidents Method:
In this method, the rater focuses his or her attention on those key or critical behaviors
that make the difference between performing a job in a noteworthy manner
(effectively or ineffectively).
Graphic Rating Scale Method:
The graphic rating scale is one of the most popular and simplest
techniques for appraising performance. It is also known as linear rating scale. In
this method, the printed appraisal form is used to appraise each employee.
The form lists traits (such as quality and reliability) and a range of job
performance characteristics (from unsatisfactory to outstanding) for each trait.
The rating is done on the basis of points on the continuum. The common
practice is to follow five points scale.

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Field Review Method:
When there is a reason to suspect rater’s biasedness or his or
her rating appears to be quite higher than others, these are neutralized with the
help of a review process. The review process is usually conducted by the
personnel officer in the HR department.
Confidential Report:
It is the traditional way of appraising employees mainly in the Government
Departments. Evaluation is made by the immediate boss or supervisor for giving
effect to promotion and transfer. Usually a structured format is devised to
collect information on employee’s strength weakness, intelligence, attitude,
character, attendance, discipline, etc. report.
Modern Methods:
Management by Objectives (MBO):
Most of the traditional methods of performance appraisal are subject to the
antagonistic judgments of the raters. It was to overcome this problem; Peter F.
Drucker propounded a new concept, namely, management by objectives
(MBO) way back in 1954 in his book. The practice of management. The
concept of MBO as was conceived by Drucker, can be described as a “process
whereby the superior and subordinate managers of an organization jointly
identify its common goals, define each individual’s major areas of responsibility
in terms of results expected of him and use these measures as guides for
operating the unit and assessing the contribution of each its members”.
HR Accounting Method:
This method evaluates an employee’s performance from the monetary benefits the
employee yields to his/her organization. This is ascertained by establishing a
relationship between the costs involved in retaining the employee, and the
benefits an organization derives from Him/her.
3.8. WAGE AND SALARY ADMINISTRATION
The main objective of wage and salary administration is to establish and maintain an
equitable wage and salary system. This is so because only a properly developed
compensation system enables an employer to attract, obtain, retain and
motivate people of required caliber and qualification in his/her organization.
3.8.1. Principles of wage and salary administration:
The main principles that govern wage and salary fixation are three:
1. External Equity
2. Internal Equity

1. External Equity:
This principle acknowledges that factors/variables external to organization influence
levels of compensation in an organization. These variables are such as demand
and supply of labor, the market rate, etc. If these variables are not kept into
consideration while fixing wage and salary levels, these may be insufficient to
attract and retain employees in the organization. The principles of external
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equity ensure that jobs are fairly compensated in comparison to similar jobs in
the labor market.
2. Internal Equity:
Organizations have various jobs which are relative in value term. In other words, the
values of various jobs in an organization are comparative. Within your own
Department, pay levels of the teachers (Professor, Reader, and Lecturer) are
different as per the perceived or real differences between the values of jobs
they perform.
This relative worth of jobs is ascertained by job evaluation. Thus, an ideal
compensation system should establish and maintain appropriate differentials
based on relative values of jobs. In other words, the compensation system
should ensure that more difficult jobs should be paid more.
3.8.3. The main factors influencing wage or salary levels are:
1. Job Needs – Different types of jobs require different levels of both physical and
mental skills. Some require high skills so pay is high on the other hand simple,
routine jobs where skill requirement is low are paid low.
2. Ability to pay – Ability to pay depends upon the profit earning capacity of the
organization MNCs pay relatively higher salaries due to their higher paying
capacity.
3. Cost of living – Due to inflation, the real wages decline affecting the purchasing
power of workers. Therefore, dearness allowance is given according to change
in consumer price index.
4. Prevailing wage rates – Prevailing wage rates in competing firms with in an industry
are taken into account while fixing wages & company that does not pay
comparable wages may find it difficult to attract and retain talent.
5. Union – Highly unionized sectors generally have higher wages because well-
organized unions can exert pressure on management and obtain all sorts of
benefits and concession to workers.
6. Productivity – In many organizations, pay is linked to productivity or performance
of workers.
7. Demand and supply of labor – The demand for and the supply of certain skills
determine prevailing wage rates. E.g. – High demand for IT Professionals ensure
higher pay for them.
8. State Regulations – Wage policy and laws of the government exercise a significant
influence on wage levels. Government has enacted laws to protect the
interests of the working class. No organization can violate laws relating to
minimum wages, payment of bonus, dearness allowance and other allowance
etc.
3.9 EMPLOYEE GRIEVANCE HANDLING PROCEDURE
Grievance may be any genuine or imaginary feeling of dissatisfaction or injustice
which an employee experiences about his job and its nature, about the
management policies and procedures. It must be expressed by the employee
and brought to the notice of the management and the organization.
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Grievances take the form of collective disputes when they are not resolved.
Also they will then lower the morale and efficiency of the employees.
Unattended grievances result in frustration, dissatisfaction, low productivity, lack
of interest in work, absenteeism, etc. In short, grievance arises when employees’
expectations are not fulfilled from the organization as a result of which a feeling
of discontentment and dissatisfaction arises.
3.9.2. Causes for Grievance:
(1) Improper working conditions such as strict production standards
(2) unsafe workplace, bad relation with managers, etc.
(3) Irrational management policies such as overtime, transfers, demotions.
(4) In-appropriate Salary structure.
(5) Violation of organizational rules and practice.
3.9.3. The managers should adopt the following approach to manage grievance
effectively-
(a) Quick action- As soon as the grievance arises, it should be identified and
resolved. Training must be given to the managers to effectively and timely
manage a grievance. This will lower the detrimental effects of grievance on the
employees and their performance.
(b) Acknowledging grievance- The manager must acknowledge the grievance put
forward by the employee as manifestation of true and real feelings of the
employees. Acknowledgement by the manager implies that the manager is
eager to look into the complaint impartially and without any bias. This will
create a conducive work environment with instances of grievance reduced.
( c) Gathering facts- The managers should gather appropriate and sufficient facts
explaining the grievance’s nature. A record of such facts must be maintained so that
these can be used in later stage of grievance redressal.
(d) Examining the causes of grievance- The actual cause of grievance should be
identified. Accordingly remedial actions should be taken to prevent repetition
of the grievance.
(e) Decisioning- After identifying the causes of grievance, alternative course of
actions should be thought of to manage the grievance. The effect of each
course of action on the existing and future management policies and
procedure should be analyzed and accordingly decision should be taken by
the manager.
(f) Execution and review- The manager should execute the decision quickly, ignoring
the fact, that it may or may not hurt the employees concerned. After
implementing the decision, a follow-up must be there to ensure that the
grievance has been resolved completely and adequately.

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9. Practice Quiz
1. Human Resource Departments are______________
(a) Line departments
(b) Authority department
(c) Service department
(d) Functional department
2. What is human factor?
(a) Micro and macro issues of socioeconomic factor.
(b) Interrelated Physiological, Psychological and Socio-ethical aspects of
human being.
(c) The entire concept of human behavior
3. Job Analysis is a systematic procedure for securing and reporting information
defining a ______________.
(a) Specific job
(b) Specific product
(c) Specific service
4. What are the factors responsible for the growth of HRM?
(a) Development of scientific management
(b) The problem of how the available human resource could effectively
minimize the cost and maximize the production.
(c) Technical factors, awakening amongst workers, attitude of the government,
cultural and social system.

5. Which among the followings describe the skills that are available within the
company?
(a) Human Resource inventory
(b) HRIS
(c) Skills inventory
6. Who has defined personnel management as a field of management which has to do
with planning and controlling various operative functions of procuring, developing,
maintaining and utilizing labor force?
(a) Harold Koontz
(b) Glueck
(c) Michael Jucius
7. Q7. Resources and capabilities that serve as a source of competitive advantage for
a firm over its rivals are called _______________.
(a) Core competency
(b) Core competence
(c) Competitive advantage

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8. Human Resource planning is compulsory for ______________.
(a) Effective employee development programme.
(b) Base for recruitment
(c) Base for selection policy
(d) All of these
9. Which of the following is a method of collection of information for job
analysis?
(a) Questionnaire method
(b) Ratio analysis
(c) Optimization models
10. ___________ provides information on the human attributes in terms of education,
skills, aptitudes, and experience necessary to perform a job effectively.
(a) Job description
(b) Job specification
(c) Job analysis

11. Part A- Question & Answers

S.No Question& Answers BL CO

1 Define HRM:
It is an art of procuring, developing and maintaining the
competent workforce in order to achieve the goals of the 1 1
organization in an effective and efficient manner.

2 What are the objectives of HRM?

• To help the org. To reach its goal.
• To employ the skills and abilities of workforce efficiently.
• To develop and maintain a quality of work life.
• To provide the org. With well trained and well motivated 1 1
employees.
• To be ethically and socially responsive to the needs of the
society.

3 Define What do you mean by compensation?

It is the process of providing equitable and remuneration to the
employees. It includes job evaluation, wage and salary
1 1
administration, incentives, bonus, fringe benefits, social security
measures, etc.

4 What do you meant by maintenance function?

Health & Safety 1 1
Employee Welfare

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5 What do you mean by HR policies?

HR policies are systems of codified decisions, established by an
organization, to support administrative personnel functions,
1 1
performance management, employee relations and Human
Resource planning.

6 Define HR planning
HR planning is the process by which an org. Ensured that it has
1 1
right number and right kind of people.

7 What is skill inventory?

Summary of the skills and abilities of non-managerial employees
2 1
used in forecasting supply are known as skill inventories.

8 What do you mean by succession planning?

Identification of likely vacancies for higher level executives and
2 1
locating likely successors to fill up the vacancies.

9 What is job analysis?

A systematic exploration of the activities surrounding and within
2 1
a job is known as job analysis.

10 Define job description.

A written statement of what the jobholder does (duties and
responsibilities), how the job is done, under what conditions and 2 1
why is known as job description.

12. Part B- Questions

S.No Question BL CO
1 Explain the Functions of HRM 1 1
2 Describe selection Procedure in detail 2 1
3 Explain different types of Training methods 2 1
4 Describe various methods of Performance Appraisal. 3 1
5 Derive the procedure of Grievance Handling. 3 1

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13. Supportive Online Certification Courses
1. M Human Resource Managment By Prof. Anurag Malik, conducted by IIT
Kharagpur – 8 weeks
2. ARPIT Course in Management by Prof. Harshavardhan, IIM- Bangalore.

14. Real Time Applications

S.No Application CO
1 Organization, Payroll, Time and attendance, Benefits 1
2 HR management information. 1
3 Recruiting, Training, 1

4 Employee Self-Service Reports 1

5 Organization, Payroll, Time and attendance, Benefits 1

15. Contents Beyond the Syllabus

1. HRIS- Human Resource Information Systems-Human Resource Information System
(HRIS) is a system designed to supply information required for effective
management of HR in an organization. Objectives of HRIS
Some of the common objectives of HRIS in operation in various enterprises are
as follows:
1. To make the desired information available in the right form to the right person
and at the right time.
2. To supply the required information at a reasonable cost.
3. To use the most efficient methods of processing data.
4. To provide necessary security and secrecy for important and / or confidential
Information.
2. What are the skills of HR manager?
The skills of HR manager are as follows:
Behavioral Skill
Negotiation Skills
Planning
Leadership Skill
Interpersonal Skill
Communication Skills
Interview Skill
Stress Management
Condition monitoring of Machine Tools

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3. Explain the role of Audit in Human resource management.
Role of Audit in the human resource management is most
important. There is no legal provision to carry out human resource audit. But
conscious employers voluntarily use it as a tool for evaluation and control of human
resource function.
Evaluation and critical review of human resource function is no less important than
that of accounting and finance function. Therefore, human resource audit is most
essential to check the organizational performance in the management in the
human resource.
4. Briefly explain the nature of career planning?

1. A Process – Career planning is a process of developing human resources rather

than an event.
2. Upward movement – It involve upward movement in the organizational
hierarchy, or special assignments, project work which require abilities to handle
recurring problems, human relations issues and so on.
3. Mutuality of Interest – The individual’s interest is served as his needs and
aspirations are met to a great extent and the organization’s interest is served as
each of its human resources is provided an opportunity to develop and contribute
to the organizational goals and objectives to the optimum of its ability and
confidence.
4. Dynamic – Career planning is dynamic in nature due to an ever changing
environment.

16. Prescribed Text Books & Reference Books

Text Book
1. Human Resource Management- Aswathappa & Himalaya Publications, 15th
Edition
2. Human Resource Management- Stephen Robbins, Mcgrawhill publications, 16th
Edition
References:
1. Human Resource Management: A. Noe, John R. Hollenbeck, Hardcover: 768
pages Publisher: Irwin/McGraw-Hill
2. Human Resource Management (9th Edition) by Gary Dessler, Hardcover: 592
pages, Publisher: Prentice Hall

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17. Mini Project Suggestion
(a) Human Resource Management System
Human Resource Management System software acts as a bridge between HR
department and Development department in software companies. HRMS looks
after overall technical and non technical work details that are carried out in
organizations.
In HRMS management software project various modules are covered where HR
department can update, delete, modify employees details from database and
manage employee payment details, work allocation details, off shore details,
recruitment information, short listed candidates, project allocation, experience,
education details.etc.

(b) Design and implementation of a computerized human resource system

The world today has become computerized, where most manually done task
are now automated for versatility, flexibility, accuracy and efficiency. Most
companies in Nigeria and also abroad has found the use of computer
irresistible in managing many of their fares like payroll, human resource
management, inventory management, contact management and so on.

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