Detailed course on HRM

HRM Concept of Human Resource Management

NTA UGC NET/JRF 2021
Industrial Relations and Labour welfare/HRM
CODE 55
Paper 2

Presented by
Lakshmi Kushwaha
Follow me : Unacademy.com/@lakshmikushwaha12-6214
Rate, Review, Feedback, Share

Concept of Human Resource Management Human Resource Management

1. Michael J. Jucius has defined human resources as “a whole consisting of inter-
related, inter-dependent and interacting physiological, psychological, sociological
and ethical components”
2. Leon C. Megginson “From the national point of view human resources are knowledge,
skills, creative abilities, talents, and attitudes obtained in the population
3. Management is a process of planning, decision making, organizing, leading,
motivation and controlling the human resources, financial, physical, and information
resources of an organization to reach its goals efficiently and effectively.
1. HRM is a process of making the efficient and effective use of human
resources so that the set goals are achieved.
2. Human Resource Management is the process of recruiting, selecting,
inducting employees, providing orientation, imparting training and
development, appraising the performance of employees, deciding
compensation and providing benefits, motivating employees,
maintaining proper relations with employees and their trade unions,
ensuring employees safety, welfare and healthy measures in
compliance with labour laws

Flippo
•Personnel management, or say, human resource
management 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
social objectives are accomplished.
Decenzo and Robbins
• HRM is concerned with the people dimension in
management. Since every organisation is made up of
people, acquiring their services, developing their skills,
motivating them to higher levels of performance and
ensuring that they continue to maintain their
commitment to the organisation are essential to
achieving organisational objectives. This is true,
regardless of the type of organisation-government,
business, education, health, recreation, or social action”.
The National Institute of Personnel
Management (NIPM) of India
• That part of management which is concerned with
people at work and with their relationship within an
enterprise.
• Its aim is to bring together and develop into an effective
organisation of the men and women who make up an
enterprise and having regard for the well-being of the
individuals and of working groups, to enable them to
make their best contribution to its success
Objectives of HRM
1. The primary objective of HRM is to ensure the availability of right people for right jobs
so as the organisational goals are achieved effectively.
2. To help the organisation to attain its goals effectively and efficiently by providing
competent and motivated employees.
3. To utilize the available human resources effectively.
4. To reconcile individual/group goals with organisational goals
 HRM Objectives Supporting Function
a) Legal Compliance
1. Societal Objectives

Objectives of HRM
b) Benefits
c) Union- Management Relations
a) HR Planning
5. To increase to the fullest the employee’s job satisfaction and self- b) Employee Relations
actualisation. c) Selection
6. To develop and maintain the quality of work life (QWL) which makes 2. Organizational Objectives d) Training & Development
employment in the organisation a desirable personal and social situation. e) Appraisal
f) Placement
7. To help maintain ethical policies and behaviour inside and outside the
d) Assessment
organisation.
a) Appraisal
8. To establish and maintain cordial relations between employees and 3. Functional Objectives b) Placement
management c) Assessment
a) T& D
4. Personal Objectives b) Appraisal, Placement
c) Compensation, Assesment

Control HRM Functions

Acquisition
Human Resource Audit
Human Resource Planning,
Human Resource Accounting Managerial Functions Operative Functions
Recruitment, selection,
Human Resource Information Sysytem
Placement
Planning Procurement

Scope
Development
Of HRM Organizing

Compensation
Maintenance Development Directing
Remuneration, Motivation, Training, Career Development,
Integration
Health & Safety, social Security, Organizational Development,
Controlling
Industrial relations, Performance Appraisal Internal Mobility
Maintenance

Managerial Function: Planning
1. Planning is a predetermined course of actions.
2. It is a process of determining the organisational goals and formulation
of policies and programmes for achieving them.
3. Planning is future oriented concerned with clearly charting out the
desired direction of business activities in future.
4. It is the process by which management determines how an
organisation should move from its current Human resource position to
desired position.
Leon C. Megginson
•an integrated approach to performing the planning
aspects of the personnel function
• in order to have a sufficient supply of adequately
developed and motivated people to perform the
duties and tasks required
•to meet organisational objectives and satisfy the
individual needs and goals of organisational
members.”
E.W. Vetter
• A process by which an organisation should move from
its current manpower position to its desired
manpower position.
• Through planning, management strives to have the
right number and right kind of people at the right
places at the right time,
• doing things which result in both the organisation and
the individual receiving maximum long-run benefit.”
Dale S. Beach
•Human resource planning is the process of
determining and ensuring that the organisation
will have an adequate number of qualified
persons,
• available at the proper times, performing jobs
which meet the needs of the enterprise and which
provide satisfaction for the individuals involved”.
Bruce P. Coleman
• Human resource planning is the process determining manpower Need & Importance of Human resource Planning
requirements and the means for meeting those requirements in I. Assessing Future Personnel Needs
order to carry out the integrated plan of the organisation. II. Foundation for Other HRM Functions

G. Stainer III. Coping with Change

• “Manpower planning is a strategy for the acquisition, utilisation,
improvement and preservation of an organization’s human
resources.
• It is aimed at coordinating the requirements for and the
availability of different types of employees.”
IV. Investment Perspective
V. Expansion and Diversification Plans
VI. Employee Turnover
VII. Conformity with Government Guidelines
VIII. International Expansion Strategies
IX. Having Highly Talented Manpower Inventory

Factors affecting HR Planning HR Planning - Prerequisites

External Factors
• Government Policies
• Level of economic development
• Business Environment
• Technology
• International Factors
• Outsourcing
i.There should be a proper linkage between HR plan and organizational plan.
Internal Factors
ii. Top management support is essential.
• Company policies and strategies iii. Proper balance should be kept between the qualitative and quantitative approaches to
• HR Policies HRP.
• Job Analysis iv. Involvement of operating managers is necessary.
• Time Horizons v. Proper alignment between short-term HR plans and long-term HR plans should be
• Type and quality of information there.
• Trade unions vi. HR plan should have in-built flexibility in order to adopt environmental uncertainties.
• Production Operations Policy vii. Time period of HR plan should be appropriate to needs and circumstances of the
organization.
 1. Determining 2.Analyzing Current 3.Forecasting
objectives of HR Manpower Demand and Supply

Human resource Planning Process Planning Inventory of Human Resources

1. The Human Resource Planning is a process of forecasting the

organization’s demand for and supply of manpower needs in the near
future.
6.Training and 5.Employment 4.Analyzing the
2. Human resource planning is a process through which the right Development Plan/Action Plan Manpower Gaps
candidate for the right job is ensured.

7.Appraisal of
Manpower Planning

Forecasting Demand and

2.Analyzing Current Manpower Supply of HR
1. Determining Objectives
Inventory
• The objective for which the • analyze the current manpower HR Needs/Demand
HR Supply Forecasting
manpower planning is to be done supply in the organization through Forecasting
should be defined precisely, the stored information about the
• The objectives can vary across the employees in terms of their 1. Managerial 2. Ratio-Trend
experience, proficiency, skills, etc. 1. Existing HR
several departments in the /Expert Judgement Analysis
organization required to perform a particular job.
• future vacancies can be estimated,
3. Regression 4. Work study
so as to plan for the manpower from Analysis Analysis
2. Internal Sources
both the internal (within the current
employees) and the external (hiring
candidates from outside) sources. 5. Delphi
6. Flow models 3.External Sources
Techniques
 1.Managerial Judgement 2. Ratio Trend Analysis
Demand • managers sit together, • This is the quickest
Forecasting Factors discuses and arrive at a forecasting technique
figure which would be the • involves studying past
future demand for labour ratios, say, between the
• Bottom UP approach number of workers and
Internal Factors sales in an organization
External Factors • Top- Down Approach
Budget constraints
Competition • Participative Approach : • forecasting future rations,
Production level
Economic climate combination of both making some allowance for
Organisation structure
Laws & regulations
Employee separation
changes in the organization
Technology, social change
New products and services
or its methods.

3. Regression Analysis 4.Work-study techniques

• similar to ration-trend analysis more • can be used when it is possible to apply

Statically
• Help to evaluate the required mix of
employee categories
• allows you to examine the relationship
between two or more variables of
interest.
work measurement to calculate the
length of operations and amount of
labour required.
• Production Budget: volume of saleable
product or volume output of individual
dept
• The budgets of productive hours are
then compiled using standard hours for
direct labour
• Total planned hours= std hrs per unit *
planned volume of produced
• Total number of employee= total
planned hrs/no. hrs by individual

HR Demand Forecast
5. Delphi Technique
• Named after the ancient Greek Oracle at the city of Delphi technique is a method
of forecasting personnel needs
• solicits estimates of personnel needs from a group of experts, usually mangers.
• HRP experts act as intermediaries, summaries the various responses and report
the findings back to the experts.
• The experts are surveyed again after they receive this feedback.
• Summaries and surveys are repeated until the experts opinions begin to agree.
• The agreement reached is the forecast of the personnel needs
6. Flow Models
• The simplest one is called the Markov model.
• Determine the time that should be covered. Shorter lengths of time
are generally more accurate than longer ones
• Establish categories, also called states, to which employees can be
assigned. These categories must not overlap and must take into
account every possible category to which an individual can be
assigned
• Estimate probability of transitions from one state to another based
on pasty trends. Demand is a function of replacing those who make
a transition.

HR Supply forecasting
1. Succession Analysis(using internal sources)
Supply forecasting means to make an estimation of supply of human resources taking
into consideration the analysis of current human resources inventory and future
availability.

1. Existing Inventory 2. Internal Sources 3. External Sources

• Head Count • transfers, promotions, • Unemployment rate

• Job Family retired employees & • Contract
Inventory(job related recall of laid-off • Agency
to same category) employees
• Availability of labour
• Age Inventory • Termination, turnover force
• Inventory of skill,
experience, values
and capabilities
 2. A transition or Markov Matrix Steps of Human resource Planning
1. Transition probability matrix is developed to determine the probabilities 4. Analyzing the Manpower Gaps
of job incumbents remaining in their jobs for the forecasting period.
• After forecasting the demand and
2. The technique is named after Russian mathematician Andrei supply, the manpower gaps can be
Andreyevich Markov. easily evaluated
3. Markov matrix, can be used to model the internal flow of human • Deficit: demand is more than the
resources supply of human resources, new
candidates need to be hired
4. These matrices simply show as probabilities the average rate of historical • Surplus: Demand is less than supply,
movement from one job to another. employees have to be removed either
in the form of termination, retirement,
layoff, transfer, etc
5.Employment Plan/Action Plan
• the action plan is to be formulated
according to
• Deficit: recruitment, training,
interdepartmental transfer plans
• Surplus: voluntary retirement schemes,
redeployment, transfer, layoff, could be
followed.

6. Training and Development
• The training is not only for the
new joinees but also for the
existing employees who are
required to update their skills
from time to time.
• training programmes are
conducted to equip the new
employees as well as the old ones
7. Appraisal of Manpower
Planning
• the effectiveness of the
manpower planning process is to
be evaluated
• the human resource plan is
compared with its actual
implementation to ensure the
availability of a number of
employees for several jobs.
• At this stage, the firm has to
decide the success of the plan
and control the deficiencies, if
any
Introduction
JOB
• A group of homogeneous tasks related by similarity of functions.
When performed by an employee in an exchange for pay, a job consists of duties,
responsibilities, and tasks (performance elements) that are
• (1) defined and specific, and
•(2) can be accomplished, quantified, measured, and rated.
• From a wider perspective, a job is synonymous with a role and includes the
physical and social aspects of a work environment.
• Often, individuals identify themselves with their job or role (foreman, supervisor,
engineer, etc.) and derive motivation from its uniqueness or usefulness.

Introduction – Job Analysis
1. Job analysis is the process of studying and collecting information relating to
the operations and responsibilities of a specific job.
2. Job analysis defines the jobs within the organization and the behaviors
necessary to perform these jobs.
3. Job Analysis is a systematic exploration, study and recording the
responsibilities, duties, skills, accountabilities, work environment and ability
requirements of a specific job.
Definition
Mihael J. Jucius
• The process of studying the operations, duties and
operational aspects of jobs in order to derive specifications
or as they are called by some job descriptions.”
Dale Yoder(1983)
• A process in which jobs are studied to determine what tasks
and responsibilities they include their relationships to other
jobs, the conditions under which work is performed, and the
personnel capabilities required for satisfactory performance

Job analysis provides the following information

about a job Objectives of Job Analysis
i. Nature of jobs required in a concern; 1. Work Simplification
ii. Nature of organizational structure;
2. Setting Up of Standards
iii. Type of people required to fit that structure;
iv. The relationship of a job with other jobs in a concern 3. Support to Personnel Activities
v. Kind of qualifications required for a particular job;
4. Organizational structure and design
vi. Provision of physical condition to support the activities of a concern;
vii. Materials, equipments and methods used in performing the job 5. Human resource planning

Work Simplification
• Job analysis provides
the information related
to job and this data can
be used to make
process or job simple.
• Work simplification
means dividing the job
into small parts i.e.
different operations in
a product line or
process which can
improve the
production or job
performance
Process of Job Analysis
Develop a Job Description and Job Specification
Setting Up of Standards
• Standard means
minimum acceptable
qualities or results or
performance or
rewards regarding a
particular job.
• Job analysis provides
the information about
the job and standard of
each can be
established using this
information
Identify Purpose of Job Analysis
Selection of Analyst
Selection of Method
Train the Analyst
Preparation of Job Analysis
Collection of Data
Review and Verify
Support to Personnel
Activities Organizational structure and
• Job analysis provides
support to various
personnel activities like • By clarifying job
recruitment, selection,
training and
development, wage
administration,
performance appraisal,
etc
design
requirements and
interrelationships among
jobs, responsibilities at all
levels can be specified,
promoting efficiency and
minimizing overlap or
duplication
1.Identify Purpose of Job
Analysis
• First of all we should
identify the purpose of
job analysis.
• Otherwise we will not
be able to collect all the
pertinent information
concerning job analysis
and job analysis
methods.
Human resource planning
• Job analysis is the
foundation of forecasting
the needs for human
resources as well as for plans
for such activities as training,
transfer, or promotion.
• Job analysis information is
incorporated into a human
resource information
2.Selection of Analyst 3.Selection of Method
• The analysts will be • We will select
taken from professional representative
human resource, line positions to analyze
managers, incumbents because it may not be
or consultants. necessary to analyze all
jobs and there may be
too many similar jobs to
analyze.
• Then identify the
appropriate method
which is the best one in
order to analyze a
particular job
 5.Preparation of Job Develop a Job Description and Job
7.Review and Verify
4.Train the Analyst 6.Collection of Data Specification
Analysis
• Analysts must verify the collected • Develop a job description and job
• If we use internal • It includes • Job analysts will data to confirm that the specification from the job analysis
analyst then we communicate the collect data information is factually correct and information.
have to give them project in the relating to job complete • A job description is a written
appropriate organization and activities, statement that describes the
training so that preparing the employee activities and responsibilities of the
they can use the documentation behaviours, job, working conditions, safety and
selected methods working hazards.
of job analysis in conditions, human • A job specification summarizes the
an efficient and traits and abilities personal qualities, traits, skills, and
effective way to perform the job, background required for getting
the job done
etc

Job Analysis – Methods/Data Collection
1.Direct Observation
Method
2.Work Method Analysis
3. Critical Incident
Job Analysis Method
Technique
4. Interview Method
5. Questionnaire Method
Direct Observation Method
• to observe and record
behaviour / events /
activities / tasks / duties
when the worker or group
engaged in doing the job
• can be effective only when
the job analyst is skilled
enough to know what is to
be observed, how to analyze,
and what is being observe
Work Method Analysis
• used to describe manual and
repetitive production jobs,
such as factory or assembly-
line jobs.
• Work methods analysis
includes time and motion
study and micro-motion
analysis
 Critical Incident Technique
• method of job analysis used to
identify work behaviours that
classify in good and poor
performance
• jobholders are asked to
describe critical incidents
concerning the job and the
incidents so collected are
analyzed and classified
according to the job areas they
describe.
Position Analysis Questionnaire (PAQ
Model)
• Developed by Mc Cormick, Jeanneret,
and Mecham (1972)
• is a structured instrument getting the
questionnaires filled by job incumbents
and their superiors.
• measure job characteristics and relate
them to human characteristics
• It consists of 195 job elements that
describe generic human work
behaviours.
Interview Method
• a useful tool of job analysis to
ask questions to both
incumbents and supervisors in
either an individual or a group
setting. Interview includes
structured interviews,
unstructured interview, and
open-ended question
Functional Job Analysis (FJA Model)
• developed by the Employment and
Training Administration of the United
States Department of Labour.
• It is used to develop task-related
statements
• It includes 7 scales (numbers) that
measure-
• 3 worker-function scales- measure
percentage of time spent with: data,
people, things;
• 1 worker-instruction scale;
• 3 scales that measure reasoning,
mathematics, and language.
6 Techniques of Questionnaire Method
Position Analysis Questionnaire (PAQ Model)
Questionnaire Method
Functional Job Analysis (FJA Model)
Work Profiling System (WPS Model)
MOSAIC Model
Common Metric Questionnaire (CMQ Model)
Fleishman Job Analysis System (FJAS Model)
Work Profiling System (WPS
MOSAIC Model
Model)
• WPS model is a • questionnaire technique of
questionnaire technique of job analysis used to collect
job analysis, is a computer- information from incumbents
administered system for job and supervisors.
analysis, • It contains 151 job tasks
• Developed by Saville & Holds rated in terms of importance
worth, Ltd for effective job performance
and 22 competencies rated in
terms of importance, and
needed proficiency at entry.
 Common Metric Questionnaire
(CMQ Model)
• developed by Harvey
• a “worker-oriented” job analysis
instrument designed to have
applicability to a broad range of
exempt and nonexempt jobs.
• It includes 41 general questions
of background section, 62
questions of contacts with
people, 80 items of decision
making, 53 items of physical and
mechanical activities, 47 items of
work setting.
Fleishman Job Analysis System
(FJAS Model)
• technique of job analysis that Job Analysis
describes jobs from the point of
view of the necessary capacities.
• It includes 52 cognitive, physical,
psycho-motor, and sensory JA produces four kinds of
documentation and procedures that
ability; are crucial to personnel activities
• each of the categories consists of
two parts – an operational and
differential definition and a Job Personnel
grading scale. Job description Job evaluation
specification assessment

Job specification
Job description
1. Job description is a job profile which describes the contents, environment,
and condition of jobs.
Job specification detail the Knowledge, skills, and abilities relevant

2. It is prepared on the basis of data collected through job analysis. to a job, including the education, experience, specialized training,
3. It provides information relating to the activities and duties to be personal traits and manual dexterity required. The job
performed in a job.
specification is important for a number of reasons.
4. Job description differentiates one job from another by introducing unique
characteristics of each job.
 BASIS JOB DESCRIPTION
Meaning Job description is the written
document in which all the
information regarding a particular
job including role, responsibilities
and duties is summarized in a
systematic manner.
Origin Originates from Job Analysis
Elements Consist of job title, job location,
role, responsibilities, duties, salary,
incentives and allowances
Objective Describes the job profile
What is it? What the company is offering to
the candidate.
Application by Human Resource Used to give the sufficient and
Manager relevant information of the job
JOB SPECIFICATION
Job specification is the set of
specific qualities, knowledge and
experience, a person must possess
to perform a particular job.
Based on Job Description
Involves personal attributes, skills,
knowledge, educational
qualification and experience
Specifies the eligibility criteria
What the company is demanding
from the candidate.
Used to match the right attributes
with the job so described
Topics Covered
1. Introduction
2. Definition
3. Staffing vs. Hiring vs. Recruiting vs. Talent Acquisition (TA)
4. Recruitment Process
5. E-Recruitment
6. Sources of Recruitment
7. Alternative to Recruitment
8. Modern Techniques of recruitment
9. Selection
10. Process of selection

Introduction- Recruitment Definition

1. Recruitment is the end-to-end process of effectively and efficiently sourcing, screening,
selecting, and appointing the best-suited candidate to the right role. Edwin B. Flippo
2. This entails not only filling in vacancies but also predicting talent requirements and • “It is a process of searching for prospective employees and
proactively managing talent.
stimulating and encouraging them to apply for jobs in an
3. Recruitment is a positive process of searching for prospective employees and stimulating organisation.”
them to apply for the jobs in the organisation.
4. Recruitment is concerned with reaching out, attracting, and ensuring a supply of qualified Kempner
personnel and making out selection of requisite manpower both in their quantitative and
qualitative aspect. • Recruitment forms the first stage in the process which
5. It is the development and maintenance of adequate man- power resources. This is the continues with selection and ceases with the placement of the
first stage of the process of selection and is completed with placement. candidates.”
Dale Yoder Staffing vs. Hiring vs. Recruiting vs. Talent
• Recruitment is the process to “discover the sources of manpower to Acquisition (TA)
meet the requirements of the staffing schedule and to employ
effective measures for attracting that manpower in adequate numbers Staffing Hiring Recruiting
Talent Acquisition
(TA)
to facilitate effective selection of an efficient working force.
• A form of focused, • Filling a vacancy • A medium-term • The strategic, long-
Dale S. Beach (usually) short-term
hiring to fulfill a
from a ready pool
of job seekers.
focused, linear, and
reactive approach
term, and proactive
process of finding,
specific • This method is to find the best fit acquiring,
• ‘Recruitment is the development and maintenance of adequate requirement. It is tactical with a focus for an existing job assessing, and
manpower resources. operational in on short- to from a large pool of hiring candidates to
nature with a short- medium-term suitable candidates fill roles that are
• It involves the creation of a pool of available labor upon whom the term focus. goals. required to meet
organization can draw when it needs additional employees.’ present and future
organizational
• The recruitment process leads to a collection of candidates for any goals.
vacancies an organization might have.

1.Talent Need Assesment/Know what you Need

5.Interview 1. Ensuring you have an in-depth understanding of the role you are hiring for
4.Screening will make the rest of the recruitment process easier and faster.
3.Talent 2. It also ensures candidates have a clear purpose and planned goals for the
Sourcing position when they join, removing any ambiguity on where they fit within
wider business objectives.
2.Preparin
g JD & JS 3. Why is a new employee needed?
4. What duties and responsibilities will the successful candidate have?
1.Talent
5. What skills or abilities are required to succeed in the role?
Need
Assessm 6. Where does this role fit within the wider business structure?
ent
2. Prepare the job description and person
specification
1. They will be one of the first things jobseekers read when they find your job
vacancy. Attracting the right applicants during the recruitment process is
largely about getting these two documents right
3. Talent Sourcing
Talent sourcing involves advertising your job vacancy across job portals and all possible
avenues that can connect you to the target talent pool and eventually to the right talent.
When it comes to sourcing talent, you can rely on a host of talent pools, including:
1. Employee referrals

2. include key responsibilities in the job description to give a good idea for what 2. Online job portals
the role involves, as well as giving a feel for who they’d be working with and 3. Social media portals
what success looks like.
4. Internal job postings
3. Person specifications help you characterise the type of skills and mindsets
that will flourish in the role. 5. Offline ads in newspapers and magazines
6. Campus recruitment drives
7. Website career pages

4. Candidate Screening/Review Your

Applications
1. The screening means to shortlist the applications of the candidates for
further selection process
2. the screening is considered as the starting point of selection but is integral
to the recruitment process.
3. The purpose of recruitment here is to remove those applications at an
early stage which clearly seems to be unqualified for the job.
5. Conducting Interview
1. Shortlisted candidates are usually put through a short first-level interview
with the HR or the hiring manager either online or over the phone. This
offers more insights into the person behind the CV while also humanizing
the organization for the candidate
2. the finalists – the top one or two candidates who have passed all the
preceding stages of screening. The final interview is usually with the
immediate reporting manager or line manager, the HR manager in charge,
and depending on the band or level that the employee will be entering,
the VP, MD, or CEO of the organization.
 E- Recruitment
1. The E-Recruitment, also called as Online Recruitment, is the process of hiring the
potential candidates for the vacant job positions, using the electronic resources,
particularly the internet.
2. E-Recruitment includes the entire process of finding the prospective candidates,
assessing, interviewing and hiring them, as per the job requirement. Through this,
the recruitment is done more effectively and efficiently.
3. job vacancies are advertised on the world wide web (www), where the
applicants attach their CV or resume, to get recognized by the potential recruiters
or the employers.
4. The E-Recruitment software and systems are available, through which the entire
recruitment process becomes automated.

Previous
Employee Referrals Former Employees
Applicants Present Employees
Internal Sources • To fill up the • The recruiter can • the organisation • Some
immediate exercise hires the organisations
Internal sources of recruitment refer to seeking the employees from within openings, calling promotion (to a candidates provide for an
up or emailing higher position) referred by the option of re-
the organisation to fill up the vacant position. the candidates or transfer (inter- existing joining to its ex-
who have department or employees employees. They
Many companies consider internal recruitment as a great option since it is previously inter-branch assuming that even consider the
applied to the transfer) of the such candidates retired
cost-effective, and they tend to hire employees who have a better know how organisation is current are more employees who
the cheapest and employees trustworthy and are willing to give
the organisation and its policies quickest source of instead of reliable. their full time or
recruitment. recruiting the part-time services
new employees. to the
organisation.
 External Sources
1. External sources of recruitment signify the hiring of those employees
who have never been associated with the organisation before.

2. The organisation needs to include new and fresh talent to become

successful and to survive in the competition. Large organisations mostly
depend on external sources of recruitment.

Campus Employment Outsourcing

Advertisements E-Recruitment
Recruitment: Exchange Walk-ins and Write-ins: Contractors
Consultancies
• : The organisation • The organisation • The organisation • The organisation
advertises the job collaborates with uses the web-based gets itself registered • Some private • The organisations • The organisation hires
openings in the the educational software as a with the consultancies are without any effort, get a contractor who
newspaper, media, institutes and source of employment professionally working random applications provides casual
company’s bulletin, colleges to hire recruitment exchange, i.e. a
social networking their students for involving electronic government-
to recruit employees when the job seekers workers temporarily,
sites (Facebook, the available job screening of affiliated agency on behalf of the submit their CV. Either especially for a
LinkedIn, Twitter), vacancies, by candidates, online who have a organisation. The by visiting the particular project, and
job portals, etc. conducting the skill test, online database of many organisation hires organisation, posting such workers have no
recruitment process profile checks and prospective such consultants on a the letter with CV or existence in the
in the respective interviews on candidates. These commission basis to mailing the CV on the company’s records.
college campus. video-conferencing. candidates register
with such acquire the desired company’s mail id.
employment human resource
exchanges in search
of better job
opportunities.
 Acquisition and Mergers: Professional Associations

• At the time of the company’s • Professional associations

merger or acquisition of
another company; it has to
lay off some of its employees
as well as recruit new
talents. The company
structure changes drastically.
facilitates the organisation to
fill in the vacant position by
advertising it in their journal
or magazines. It also offers
job opportunities to the
highly educated, skilled or
experienced resources who
are experts in their fields and
hold a membership with
such associations

Alternatives to Recruitment
Outsourcing Employee Overtime
Temporary
Employees
Employee Leasing Recent trends/Modern Methods in recruitment
• When the • During the peak • The organisation at • The leasing 1. Networking Events
organization time, when the times, hire companies lease out
develops a vacant production temporary the services of their
2. Body Shopping
position, it increases gradually, employees through personnel to the 3. ESOP’s
outsources the the organisation employment organisation. They
hiring process to a demands overtime agencies to cope up are responsible for 4. Social Media
third party which is from the employees with the workload maintaining the
specialised in in return for in peak times. Such employees’ payroll, 5. Employer Review Sites
recruitment additional wages. employees can be and in return, they
services. any technicians, get fees from the 6. Mobile Recruitment and Video Interviewing
professionals or organisation.
executives and are 7. Passive candidates
experienced 8. Benefit from the gig economy/Freelancing
personnel available
at lower wages
 Networking Events Body Shopping
• HR events, job fairs, • recruitment for
open houses, seminars, professional
and conferences organizations and
• HR professionals with training institutes that
relevant and sustained are creating a talent pool
relationships can easily for future employment.
acquire candidates and • A body shop (more
interns from different formally known as an IT
disciplines at these services provider or
events consultancy) recruits
and retains a staff and
contracts those
employees out to other
companies.
ESOP’s
Social Media
• Companies are now also • The possibilities of social
attracting potential media are endless and
candidates by offering now go far beyond the ‘big
company ownership in four’ (Facebook, Twitter,
stocks to employees Instagram and LinkedIn).
through an employee Recruiters are starting to
stock ownership think outside the social
program. box and try places like
Tinder, SnapChat and
Bumble to find new talent.
Employer Review Sites
• Glassdoor must be a part
of every company’s
recruitment strategy.
• modern-day job seekers
research the company’s
culture, perks, pay, pros
and cons. So make the
most of employer review
sites and if you find any
flaws, now is the time to
optimize your methods of
recruitment.
• Ex. Great Place to work,
Indeed, Vault, the
jobcrowd
Mobile Recruitment and
Video Interviewing
• A mobile-responsive
recruitment process
ensure that you are easily
accessible for busy job-
seekers and don’t miss out
on talented candidates
who are always on-the-go.
• Video interviewing is a
relatively new recruitment
method that makes it
much easier for recruiters
to screen candidates while
ensuring a convenient and
positive candidate
experience.

Passive candidates Benefit from the gig economy

• The arrival of (professional) • working with freelancers gives Selection

social networks , helped
recruiters can reach out to
anyone – passive candidates
included
• They can engage with these
candidates and build a
relationship. Even if the passive
candidate isn’t interested right
now, a connection has been
made via social media
you the chance to see how
good they are and how well The Selection is the process of choosing the most suitable candidate for the vacant
they work with the rest of the position in the organization.
team.
In other words, selection means weeding out unsuitable applicants and selecting
• If you like what you see, you
know who to hire next time those individuals with prerequisite qualifications and capabilities to fill the jobs in the
you’re looking for a full time organization.
employee
The Selection is a process of picking the right candidate with prerequisite qualifications
• Ex. Peopleperhour, freelancer,
upwork, fiverr, and capabilities to fill the jobs in the organization.
 1.Preliminary
Screening
2.Selection Test
3.Employment
Interview Process of Selection
1.Preliminary Screening 2.Selection Test 3.Employment Interview

• initial screening of applicants • Individuals differ with respect • To find out the suitability of
to remove individuals who to physical characteristics, the candidate.
4.Reference and obviously do not meet the capacity, level of mental • To seek out more information
6.Medical 5.Selection position requirements. ability, their likes and dislikes about the candidate.
Background and also with respect to
Examination Decision • few straight forward • To give the candidate an
Checking questions are asked. personality traits. accurate picture of the job
• Purpose of Screening is to • Individual Test with details of terms and
decrease the number of • Aptitude Test conditions and some idea of
applicants being considered • Personality Test organisational policies.
for selection. • Interest Test • Panel Interview
7.Job Offer or • Situational Test • Phone interview
8.Contract of • Group Interview
Appointment • Honesty Test
Employment • Lunch Interview
Letter
• Behaviour Interview

4.Reference and 7. Job Offer or Appointment

Background Checking
5.Selection Decision 6.Medical Examination 8. Contract of Employment
Letter
• prospective employer • who clear the • It serves to ascertain the
normally makes an employment tests, applicant's physical
• formally appointed by issuing him • the candidate has to give his
investigation on the interview, reference capabilities to meet the an appointment letter. The date acceptance within the time
references supplied by checks, is prepared and job requirements. by which the candidate must join period given in the appointment
the applicant then the selected • It serves to protect the the orgainsation is mentioned in letter.
• He undertakes a candidates are listed in organisation against the the letter. The broad terms and • have to submit his certificates of
thourough search into the order of their merit. unwarranted claim under conditions of employment, qualifications and experience for
candidate's family • the views of the workers' compensation nature of job, pay scale, etc. are
background, past concerned department laws or against law suits verification by the personnel
employment, education, head are also considered. for damages. also an integral part of the department
personal reputation, • It helps to prevent apointment letter. • Both the employer and the
police recorrd, etc. communicable diseases employee will also sign a contract
from entering the of employment which contains
organisation
important terms and condition

ESSENTIALS OF SELECTION PROCEDURE
1. Someone should have the authority to select. The authority comes from
the employment requisition, as developed by an analysis of the work-load
and work-force
2. There must be some standard of personnel with which a prospective
employee may be compared thus a comprehensive job description and
job specification should be available beforehand
3. There must be a sufficient number of applicants from whom the required
number of employees may be selected
Principle of Placement
1. Man should be placed on the job according to the requirements of the job. Job
first; man Next should be the principle of placement.
2. The job should be offered to the man according to his qualifications. The placement
should neither be higher nor lower than the qualifications.
3. The employee should be made conversant with the working conditions prevailing in
the industry and all things relating to the job.
4. He should also be made aware of the penalties if he commits a wrong
Placement
The last step in the procurement of the employees is placing the selected
candidates on the right jobs and introducing them to the organisation.
Pigors and Myers
• Placement may be defined as the determination of the job to
which a selected candidate is to be assigned, and his assignment
to the job.”
• It is matching of what the supervisor has reason to think he can
do, with the job requirements (job demands); it is matching of
what he imposes (in strain, working conditions) and what he
offers in the form of payroll, with other promotional possibilities
etc
Principle of Placement
4. While introducing the job to the new employee, an effort should be made to develop a
sense of loyalty and cooperation in him so that he may realise his responsibilities better
towards the job and the organisation
5. The placement should be ready before the joining date of the newly selected person.
6. The placement in the initial period may be temporary as changes are likely after the
completion of training. The employee may be later transferred to the job where he can
do justice
 Induction Edwin B.Flippo
1. Induction means introduction of a new employee to the job and the organization.
2. It is the process of receiving and welcoming an employee when he first joins a company
•“Induction is concerned with introducing or
and giving him the basic information he needs to settle down quickly and happily and start orienting a new employee to the
work.
organisation.
3. It is a welcoming process to make him feel at home and generate in him a feeling of
belongingness to the organization. In the process of induction the new comer is explained
his duties and responsibilities, company rules, policies and regulations so as to make him
•It is the welcoming process to make the new
familiar to the organization. employee feel at home and generate in him a
4. It is the first step in a proper communication policy which seeks to build a two-way channel feeling of belongingness to the organisation
of information between the management and employee

Induction
Objectives of Induction
1. Introduction of the Company of the New Comers
Informal
2. To Remove Hesitation and Shyness of New Comers Formal
unplanned induction programme
planned programme
3. To Acquaint the New Comer about Rules and Regulation simply an introduction
carried out by the large size
4. To Remove Fear and to Develop Confidence organisation carried out by the medium and
small-scale units
5. To Develop Honesty, Loyalty and a Sense of Belonging
6. To Gain Image, Behaviour, Response and Attitude
Supervisory System Buddy or sponsor system
7. To Develop and Maintain Healthy Relations
immediate job supervisor conducts the induction immediate supervisor assigns the
8. To Rehabilitate into the Changed Surroundings and programme for the new entrant responsibility of induction of the new
introduces to the colleagues, and takes him entrant to an old employee
9. To Minimize the Reality Shock. round the sections/divisions which are related to old employee acts as friend, philosopher
his job. and guide to the new comer
 Contents of Induction Programme Contents of Induction Programme
1. Company’s history, mission, vision and philosophy. 10. Grievance procedures.
2. Products and services of the company. 11. Safety measures.
3. Company’s organisation structure. 12. Benefits and services for employees.
4. Location of departments and employee services. 13. Training, promotions and transfer facility.
5. Employees activities like clubs, credit society. 14. Career advancement schemes.
6. Personnel policies and procedures.
15. Counselling facility.
7. Standing orders.
8. Rules and Regulations.
9. Terms and conditions of services

Process of Induction Phases of Induction Programme

2.Induction with
Immediate Superior
• duly placed on the job • company policies, plans,
and gives basic
instruction. • introduce him with his
immediate superior or
with his colleagues
• duties, responsibilities
authorities, work
procedure and practices
1.Welcoming the
New Employees
1.General Induction
• conducted by the HR
department
• expose the new entrant to
the organisation by
targets objectives, goals, explaining him the mission,
products services, future objectives, history and
prospects, working philosophy of the
organisation
environment, future
facilities, salary structure
• about his service conditions,
promotional opportunities, pay and perks, promotion
transfer facilities etc
procedure, personnel
policies and grievance
3.To Impart Detail
handling mechanism
Instructions
• inculcates pride for the
employee to work in the
organisation
2.Specific Induction 3.Follow-up Induction
• given by the new employee’s • main objective of the follow-
supervisor. up induction is to verify
• focus is on the overall whether the new employee
exposition of the new is getting himself adjusted
with the work and
employee to his job
organisation or not.
• the employee is introduced
to the job, shown place of • given by the employee’s
supervisor or a qualified
work and around the
specialist on industrial
premises, introduced to his
co-workers and briefed psychology.
about the procedures and
methods, custom and
routines, rules and
regulations regarding his
job.
 Detailed Course on HRM
HRM – Job Evaluation Topics Covered
NTA UGC NET/JRF 2021 1. Introduction
Industrial Relations and Labour welfare/HRM 2. Definitions
CODE 55
3. Principle of Job Evaluation
Paper 2
4. Objectives
Presented by 5. Methods of Job Evaluation
Lakshmi Kushwaha 6. Importance
Follow me : Unacademy.com/@lakshmikushwaha12-6214
Rate, Review, Feedback, Share

Introduction
1. Job evaluation is a systematic and orderly process of determining the
worth of a job in relation to other jobs. The objective of this process is to
determine the correct rate of pay.
2. Job evaluation is the process of analyzing and assessing various jobs
systematically to ascertain their relative worth in an organization.
3. Job evaluation is the rating of jobs in an organisation. This is the process of
establishing the value or worth of jobs in a job hierarchy. It attempts to
compare the relative intrinsic value or worth of jobs within an
organisation. Thus, job evaluation is a comparative process.
Definitions
International Labour Office (ILO)
• Job evaluation is an attempt to determine and
compare the demands which the normal
performance of a particular job makes on normal
workers, without taking into account the individual
abilities or performance of the workers concerned”.
 Edwin B. Flippo
Principles of Job Evaluation
• "Job evaluation is a systematic and orderly process of determining the worth of a Rate the Job and Not Man
job in relation to other jobs.
Elements of Job should be Definite
Dale Yoder,
• "Job evaluation is a practice which seeks to provide a degree of objectivity in Uniformity in Understanding
measuring the comparative value of jobs within an organisation and among similar
organisations." Explained to the Employees
Principles of Job Evaluations
Bureau of Labour Statistics, Participation of the Foremen
• "Job evaluation is the evaluation or rating of job to determine their position in job
hierarchy. The evaluation may be achievement through asssignment of points or Co-operation from Employees
the use of some other systematic rating method for essential job requirements
such as skill, experience and responsibility." Talk only in Point Values

Avoid too many Occupational Wages

Rate the Job and Elements of Job Uniformity in Explained to the

Participation of the Co-operation from Talk only in Point Avoid too many
Not Man should be Definite Understanding Employees
Foremen Employees Values Occupational Wages
• Job evaluation • Each job, as • Success in job • Any job • The foremen • The co-operation • The purpose of • Too many
deals with the job stated already, rating is evaluation plan if should participate from the discussion with the occupational wages
and not with the should be divided absolutely implemented in the rating of the employees is foremen and (or rate ranges for
employee holding into small dependent on should be clearly job in their own another condition employees is to given labour
the position. elements. These uniformity of explained to the departments. precedent for the secure their grades) should not
• Each job has elements should understanding foremen and success of any job confidence and to be established. It
certain definite be fixed, definite with regard to employees. Clear- evaluation plan. achieve this, avoid would be unwise to
and fixed and easily the definition of cut explanations • The broad features discussions of adopt an
explainable. the elements and and illustrations can be discussed money value. Talk occupational wage
elements. only point values for each in terms of
Besides, these consistency in the of the plan shall with the employees
• These elements but the basic and degree of each point values.
should be rated elements should selection of the avoid element.
be very few in degrees of those misunderstanding secrets should not
on the basis of be disclosed to Discussion on
what job itself number. This will elements. and frustration. them. money values will
requires. avoid any lead to juggling.
overlapping.
 Methods of Job Evaluation
Objectives of Job Evaluation
1. Ranking Method
1. Provide a standard procedure for determining the relative worth of each job in a plant. Qualitative or Non
2. Determine equitable wage differentials between different jobs in the organisation. quantitative
Method/Non-
3. Eliminate wage inequalities. Analytical
2.Job Grading (Or Job
4. Ensure that like wages are paid to all qualified employees for like work. Classifications Method)
Methods of Job
5. Form a basis for fixing incentives and different bonus plans. Evaluation
6. Serve as a useful reference for setting individual grievances regarding wage rates. 1. Point Method
7. Provide information for work organisation, employees’ selection, placement, training and
numerous other similar problems. Quantitative
Method/Analytical
8. Provide a benchmark for making career planning for the employees in the organisation.
2. Factors Comparison Method

Qualitative or Non Quantitative Method Steps Involved in Ranking Method

1.Ranking Method
• Rank means ‘to arrange
according to classes’.
• all jobs in an organisation are
arranged according to their
worth or importance.
• For this purpose, a
committee comprising of
certain executives is formed.
• committee does keep in
mind certain factors e.g. type
of work, responsibilities
involved, working conditions
and supervision required. No
weight or points are
specified for these factors.
Advantages
• (a) It is very simple to
understand.
• (b) It is economical (requiring
less amount than other
methods).
• (c) It can be installed without
any delay as it requires lesser
time.
Disadvantages
1.Preparation of Job Description
• (a) There is no pre- ranking can take place without job description, it is
determined yardstick. better if a job description is prepared beforehand. 2.Selection of Rates and Key Jobs
• (b) It fails to tell the Different persons may give different rankings if job
differences between evaluation is entrusted to more than one person.
different jobs as various
factors effecting jobs are not
separately considered.
• (c) Wages already being paid Ranking Method
on the jobs will affect the job
evaluation.
• (d) The arbitrary ranking of
4.Job classification
jobs may be resented by the
A job classification is prepared on the basis of 3.Rating of other jobs
employees.
ranking. Generally 8 to 12 classifications are For establishing the position of the job in the ranks,
considered sufficient. The wages paid for all jobs in it is compared with the key jobs.
one class will be same.
 Example : Ranking Method
The Ranking of Teachers in a University is as Follows:
I. Professor
II. Associate Professor/Reader
III. Assistant Professor
IV. Lecturer
V. Research Scholars.
2. Job Grading (Or Job Classifications Method)
Job Grading
• method is an improvement
over ranking method in the
sense that predetermined
yardstick is available
• yardstick is provided in the
form of job classes or grades.
• The committee goes through
the job description of each job
and assigns it a particular
grade.
• There are different rates of
wages for different grades of
jobs.
• The jobs may be graded as
skilled, unskilled, routine,
administrative, etc.
Advantages
• i) It is very simple to operate.
• (ii) It is inexpensive.
• (iii) It requires less time.
• (iv) It is suitable to small scale
concerns.
Steps Involved in Job Grading
Disadvantages
(iii) Selection of key
• (i) It is difficult to write ii) Preparation of grade jobs. Few jobs are
precisely grade descriptions.
(i) Preparation of job
descriptions or job selected from different
descriptions
• (ii) This method requires classes departments for this
multiple systems for different purpose.
types of jobs. For example,
there may be too much
difference between an office
and factory job description.
• (iii) Since only judgment is
used for all jobs, it may prove
to be incorrect. (v) All jobs are classified by the pre-
• (iv) It is unsuitable for large determined grades. All jobs within (iv) Assigning a grade to
scale enterprises. one grade are treated alike in the key jobs
matter of salary.
 Point Method/Point score
Method
• a detailed analysis of job’s
worth is made for determining
the fair wages.
• (i) All factors influencing
various jobs should be
considered beforehand.
• (ii) The job description is
prepared for the job if it is not
available.
• (iii) All factors are evaluated in
terms of points.
• (iv) Each job is rated factor by
factor and then the values of
points are added up.
• (v) All jobs with same (more or
less) points are classified into
one grade. Thereafter, wages
for each job are fixed on the
basis of total points.
Advantages Disadvantage
• i) Objective: • 1. Expensive
• It is an objective method and • 2. Factors Difficult To Select:
wages differentials are • Selection of factors is a difficult
numerically explained. task. It is difficult to develop
• (ii) Accuracy: as definitions are points for sub-factors.
written and there is no • 3. Clerical Work:
difficulty in understanding the • It involves considerable clerical
various terms. work and is time consuming
• (iii) Utility: Small scale concerns cannot
• Scales once developed can be afford to install this system.
used for a long time.
• (iv) Easy Evaluation: in terms
of money and money values
are assigned to total points.
• (v) No Bias or Prejudice:
• (vi) No Resistance:
• employees or their unions as
this method is free from
manipulations.

Steps Involved In Point Method

1. Types of jobs to be covered 2.Selection of factors
Different jobs involve different skills. There should Skill, education, experience, initiative
be separate evaluation programme for executive ,Responsibility, Mental and physical efforts.,
and clerical jobs as both require different factor Working conditions

Point Method
3.Construction of Factor-Scales or Allocation of
4.Evaluation of Jobs
Points
The last step is to evaluate the jobs by assigning
Each factor is given certain points and each point
points to various factors as laid down in the job
carries some value in terms of money
specifications
Total points for a job are determined and then
The total points of a job indicate wages
these points are allocated to various factors.
 Factor Comparison Method

• Thomas E. Hitten was the first to originate factor comparison method Steps given by Edwin B Flippo
of job evaluation (a) Select job factors
• This method determines the relative ranks of the jobs to be evaluated
(b) Select key jobs
in relation to monetary scale.
• It is often used for evaluating white collar, professional and (c) Determine correct rates of key jobs
managerial positions. (d) Rank job factors under each key job
• This method is different from point method only is respect of (e) Allocate the correct rate of each key job among the job factors
yardstick provided for evaluating jobs.
(f) Evaluate all other jobs in terms of these factors (use it as
• Under this method, only few jobs, called ‘Key Jobs’ are evaluated at yardstick)
the first instance
(g) Design, adjust and operate the wage structure

Advantages Disadvantages

• 1. Unlike point system, there is no • 1. It is a complicated method and is

problem of translating points into not easily explainable to employees.
monetary values. • 2. Its installation is expensive and
• 2. Wages for any unlike jobs can be small scale concerns cannot afford it.
calculated. This system requires the services of
• 3. This method gives reliable results experts.
which are acceptable to the trade • 3. It requires leadership by a
unions. competent manager.
• 4. Since few factors are selected,
there is no overlapping of factors.
• 5. The method may be applied to
combination of manual and
supervisory positions.
 Importance Of Job Evaluation Incentives - Topics Covered
(1) It is a technique by which a rational and consistent wage structure is 1. Introduction
involved
2. Definition
(2) It eliminates inequalities in grades
3. Incentive Schemes
(3) It also eliminates personal prejudices
4. Advantages
(4) It maintains harmonious employer-employee relation
(5) Wage controversies are solved by justifying wage-rates 5. Disadvantages
(6) Important job-factors are used in evaluation
(7) A job-evaluation technique provides the basis for comparison of each job
(8) It lowers cost of recruitment and selection

LAKSHMI KUSHWAHA TELEGRAM: NET/JRF HRM LEARNER

Definition
Introduction - Incentives Milton L. Rock
1. Anything that can attract an employee’s attention and motivate them to work • Variable rewards granted according to variations in the achievement of specific
can be called as incentive. results’.

2. An incentive aims at improving the overall performance of an organization. K. N. Subramaniam

3. Incentives can be classified as direct and indirect compensation.
4. They can be prepared as individual plans, group plans and organizational
plans.
5. Incentives are monetary benefits paid to workmen in recognition of their
outstanding performance. They are defined as “variable reward granted
according to variations in the achievement of specific results”.
LAKSHMI KUSHWAHA TELEGRAM: NET/JRF HRM LEARNER
• ‘Incentive is system of payment emphasizing the point of motivation, that is, the
imparting of incentives to workers for higher production and productivity’.
The National Commission of Labour
• ‘Wage incentives are extra financial motivation.
• They are designed to stimulate human effort by rewarding the person, over and
above the time rated remuneration, for improvements in the present and targeted
results’.
LAKSHMI KUSHWAHA TELEGRAM: NET/JRF HRM LEARNER
 Incentive Schemes
(given by ILO)

Incentive Schemes Earnings vary in the same

Earning Vary less Earning Vary
Earnings vary at different
Proportionately than Proportionately more than
proportion as output levels of output
output output
1. The Incentive Schemes are the programs designed to encourage and
Taylor’s
High piece rate
motivate workmen for higher efficiency and greater output. Straight Piece work Halsey Plan
system
Differential PIECE
Rate
Merrick
2. According to International Labor Organization (ILO), the incentives Standard Hour
Rowan Plan
High Standard
Differential Piece
System Hour system
Rate
are “payment by results” but however it is correct to call it as
Barth Variable
Gantt Task System
Sharing Plan
the “incentive system of payment” since it lays more emphasize on
Emerson’s
motivation, i.e., incentives are imparted to the workers for their Bedaux Plan
Efficiency Plan

outstanding performances.
LAKSHMI KUSHWAHA TELEGRAM: NET/JRF HRM LEARNER LAKSHMI KUSHWAHA TELEGRAM: NET/JRF HRM LEARNER

1. A scheme in which the worker’s earning vary in the same
proportion as output
The income of the worker varies proportionately with his level of output. This means, any
gains and losses incurred as a result of worker’s output shall be accrued to him/her.
Straight Piece-Work System
• A system in which the worker is paid according to the number of units produced
at a fixed rate per unit during a defined period of time is called a straight piece-
work system.
• the rate per unit of output is fixed,
• the earnings of the worker are computed by multiplying his total output by the
rate per unit.
• the earnings of a worker depend directly on his performance (measured in units)
Standard Hour System
• The standard time in terms of hours is set for the completion of a job.
The rate per hour is then determined.
• Also called as 100 percent gains-sharing
• The worker is paid for a standard time irrespective of whether the job
is completed in the standard time or less
• This means that the worker is paid the same wages even if the time
spent is more than the standard hours unless he/she is guaranteed
the time wages.
• Organizations where the task or a job is longer, non repetitive and
requires specialized skills for its completion.

LAKSHMI KUSHWAHA TELEGRAM: NET/JRF HRM LEARNER LAKSHMI KUSHWAHA TELEGRAM: NET/JRF HRM LEARNER
 2. A scheme in which the worker’s earning vary
Halsey Plan

less proportionately than output:
1. The employees will earn less in proportion to his level of output.
2. The common feature of these method is that time is used as a measure of
output and bonus is given for the time saved ( a difference between the
time set for the completion of a job and the time actually taken).
3. These incentive schemes are also called as gain-sharing schemes since both
the employee and the employer share the gains resulting from the time
saved.
4. These methods are typically used in the cases where the standards of the
worker’s output cannot be set or measured accurately.
• The standard time for the completion of a job is fixed and the rate per hour is
then determined.
• If the time taken by a worker is more than the standard time, then he shall be
paid according to the time rate, i.e. time taken multiplied by the rate per hour.
• The time wages are guaranteed even if the output of a worker is below the
standard
• In case, the worker completes the works in less than the standard time, then
he/she will be paid according to the actual time, i.e. time-rate plus the bonus
calculated at a specified percentage of the saved time.
• The bonus percentage varies from 30-70 percent.
• The usual bonus share paid to the worker is 50% of the time saved multiplied
by the rate per hour (time-rate)

LAKSHMI KUSHWAHA TELEGRAM: NET/JRF HRM LEARNER LAKSHMI KUSHWAHA TELEGRAM: NET/JRF HRM LEARNER

Barth Variable Sharing Plan Bedaux Plan

Rowan Plan • scheme in which the time-rate is not • The standard time for the completion of a
guaranteed and the earnings of the worker job is fixed and the rate per hour is defined.
• The standard time for the completion of a job and the rate per hour is fixed. are ascertained by taking the square root of • Each minute of the standard time is called
• If the time taken by the worker is more than the standard time, then he is paid the standard hour multiplied by the as point or B, such as in one hour there are
according to the time rate, i.e. time taken multiplied by the rate per hour. number of hours actually taken for the 60 Bs.
completion of the job and then multiplying • If the worker completes the job in more than
• the worker completes the work in less than the standard time; then he is entitled to it by the worker’s rate per hour. standard hours, then he is paid according to
a bonus along with the time wages. • does not guarantee the time-rate. the time-rate, i.e. time taken is multiplied by
• A bonus is the percentage of worker’s time rate. • This means a worker is not paid for the the hourly rate.
• The bonus/premium is calculated on the percentage of wages earned for working hours worked more than the standard hours. • the work is completed in hours less than the
on a job and is not calculated for the time-saved, as in the case of Halsey Plan. • Earning=square root(std hrs * Actual Hrs standard time; then the worker is entitled
taken) * Per unit Hour to the bonus in addition to the hourly rate.
• This percentage is equivalent to the proportion of the time saved to the standard • A bonus is equal to the 75% of the
time. earned/saved points (in excess of 60 per
• Bonus = Time Saved/ Standard Time hour) multiplied by one-sixth of the hourly
rate.

LAKSHMI KUSHWAHA TELEGRAM: NET/JRF HRM LEARNER LAKSHMI KUSHWAHA TELEGRAM: NET/JRF HRM LEARNER
3. A scheme in which worker’s earning vary proportionately more
than output
High Piece Rate System
• High Piece Rate System is an incentive scheme
similar to the straight piece-work system, in which
the worker’s earnings are in proportion to his
level of output, but however, the increment in
earnings for each additional unit of output
above the standard is much greater.
• a worker starts earning more once the standards
are reached.
• Such as one percent increase in the output
above standard, may increase the worker’s
earnings by 4/3 times as compared to the one
percent increase in the worker’s earnings under
the straight piece-work system.
LAKSHMI KUSHWAHA TELEGRAM: NET/JRF HRM LEARNER
4. A Schemes in which the worker’s earnings
High Standard Hour System vary differently at different levels of output:
• High Standard Hour System, the earnings of the
worker vary in the same proportion to the level of 1. This group includes several types incentive schemes which explain that
output, as in the case of the standard hour
system, but the increment in the earnings for how the worker’s earnings vary from minimum to maximum levels
each additional unit of output above standard is
significant. with respect to their different levels of output.
• worker’s earnings start increasing once the
standard has been reached.
• Here the standard time in terms of hours to
2. the incentive programs desirable to be employed in a labor-intensive
complete the job is fixed and the rate per hour is
then determined. industry, where the workers are more than the automated plants.
• For every one percent increase in the level of
output above standard, there might be a 4/3
times increase in the worker’s earnings as
compared to the one percent increase in the
earnings under the standard hour syste
LAKSHMI KUSHWAHA TELEGRAM: NET/JRF HRM LEARNER

Taylor’s Differential Piece-Rate System Merrick Differential Piece-Rate System

• F.W. Taylor, who believed that the workers should be paid on the basis of their degree of
efficiencies
• with the help of Time and Motion Study, the standard time for the completion of a job is fixed on
the basis of which the performance of the workers is evaluated
• the worker who exceeds the standard output within the stipulated time must be paid a high rate
for high production.
• On the other hand, the worker is paid a low rate if he fails to reach the level of output within the
standard time.
• , there are two piece-rates, one who reach the standard output or exceeds it, is paid 120 percent of
the piece rate.
• While the one who fails to reach the standard level of output, is paid 80 percent of the piece-rate.
• The minimum wages of the worker are not guaranteed.
• Taylor’s differential piece rate system works on the principle that the inefficient worker must be
paid at a low piece-rate for low production such that he is left with no other option but to leave the
organization.
• The Merrick Differential Piece-Rate System is a modification of Taylor’s
differential piece-rate system in which three piece-rates are used to
distinguish between the beginners, the average workers, and the superior
workers, against two piece-rates in Taylor’s system.
• The worker is paid the straight price rate up to 83% of the standard output,
10 % above the normal rate for producing between 83% – 100% and 20%
above the normal rate for producing more than 100% of the standard
output.
• Here also, the minimum wages of the worker are not guaranteed.
• Merrick differential piece-rate system the workers are not penalized for
producing below the standard output up to 83%.

LAKSHMI KUSHWAHA TELEGRAM: NET/JRF HRM LEARNER LAKSHMI KUSHWAHA TELEGRAM: NET/JRF HRM LEARNER
 Gantt Task System
• Gantt Task System, the standard time is fixed for the completion of a task based on
a careful time and motion study.
• The worker’s actual performance is compared against the standard time to
determine his efficiency and make the payments accordingly.
• The Gantt task system guarantees the worker’s time-rate for the level of output
below the standard.
• Thus, if the worker takes more than the standard time to complete the task, then his
efficiency is below 100%, and he is paid only the time wages.
• If the worker completes the task within the standard time, then his efficiency is 100%
and in addition to the time wages, he is also paid a bonus of 20% on the wages
earned.
• If the worker takes less than the standard time to complete a task, then his efficiency
is more than 100%, and the wages are paid at high-piece rates.
Emerson Plan
• Emerson Plan, the standard time for the completion of a task is fixed
against which the actual performance of the workers is measured.
• The worker’s efficiency can be determined by dividing the time taken
by the standard time.
• the worker is paid only the time rate for the efficiency up to 67%.
• At 100% efficiency, the worker is paid time wages, plus a bonus of
20% on the wages earned.
• The worker is paid one percent additional bonus for each additional
one percent efficiency added after the standard.

LAKSHMI KUSHWAHA TELEGRAM: NET/JRF HRM LEARNER LAKSHMI KUSHWAHA TELEGRAM: NET/JRF HRM LEARNER

Detailed Course on HRM

Performance Management Topics Covered
NTA UGC NET/JRF 2021 1. Difference between Performance management & Performance Appraisal
Industrial Relations and Labour welfare/HRM 2. Performance Management
CODE 55
3. Performance Management Cycle
Paper 2
4. Performance Appraisal
Presented by 5. Process of Performance Appraisal
Lakshmi Kushwaha
Follow me : Unacademy.com/@lakshmikushwaha12-6214
Rate, Review, Feedback, Share
 Performance Appraisal Performance Management

Performance Management
• a rational assessment of the performance of • alludes to the management of performance of
an individual, based on pre-determined the manpower working in an organization.
standards. • Performance Management is the management
1. Performance management (PM) is a process of ensuring that set of activities and outputs • Performance Appraisal, means the analysis of of human resources in an organization.
meets an organization's goals in an effective and efficient manner. an employee's performance and their caliber • Performance Management is a process.
for future growth and development. • Flexible
2. Performance management's goal is to create an environment where people can perform to the • is a system
best of their abilities to produce the highest-quality work most efficiently and effectively. • performance management is a strategic tool.
• Inflexible • managers are held responsible to conduct
3. Performance management is the process of continuous feedback and communication between • is an operational tool to improve the efficiency • Holistic Approach
managers and their employees to ensure the achievement of the strategic objectives of the of employees.
• ongoing process.
organization. • conducted by a human resource department
• Qualitative Aspects
• individualistic approach
4. Performance management is commonly misconstrued with performance appraisal, which is a • It is a Prospective(forward looking process)
• Annually or twice in year
process of evaluating the performance of the workforce and includes feedback/review on an
employee job performance. • Quantitative aspects
• Corrections are made retrospectively(looking
on back situation , performance)

Planning Monitoring Developing

Planning • setting employees' goals • managers are required to • This phase includes using
and communicating monitor the employees’ the data obtained during
these goals with them. performance on the goal. the monitoring phase to
• these goals should be • This is where continuous improve the performance
disclosed in the job performance of employees
Rewarding Monitoring description to attract management comes into • It may require suggesting
Performance quality candidates, they the picture. refresher courses,
Management Cycle should be communicated • With the right providing an assignment
once again when the performance that helps them improve
candidate becomes a management software, their knowledge and
new hire. you can track your team’s performance on the job,
performance in real-time or altering the course of
and modify and correct employee development
Rating Developing course whenever to enhance performance
required. or sustain excellence.
 Rating
• Each employee’s performance
must be rated periodically and
then at the time of the
performance appraisal.
• Ratings are essential to identify
the state of employee
performance and implement
changes accordingly.
• Both peers and managers can
provide these ratings for 360-
degree feedback.
Rewarding
• Recognizing and rewarding good
performance is essential to the
performance management
process, as well as an important
part of employee engagement.
• You can do this with a simple
thank you, social recognition, or a
full-scale employee rewards
program that regularly recognizes
and rewards excellent
performance in the organization
Key features of effective performance
management software
1. Customization: It should be customizable to suit your organization’s
industry and performance management strategy.
2. Transparency: It should be able to eliminate the confusion that both
managers and their teams experience in the process of performance
management.
3. Objectivity: It should be able to offer objective metrics on which
managers can base their performance evaluation.
4. Frequency: It should allow for real-time, instant feedback and periodic
employee ratings.

Performance Appraisal Objectives of Performance Appraisal

1. Performance Appraisal is the systematic evaluation of the performance of
employees and to understand the abilities of a person for further growth
and development.
2. Performance appraisal is a systematic, periodic and so far as humanly
possible, the impartial rating of an employee’s excellence in matters
pertaining to his present job and to his potentialities for a better job.
3. It is also known as performance rating, performance evaluation, employee
assessment, performance review, merit rating, etc.
1. To maintain records in order to determine compensation packages, wage structure,
salaries raises, etc.
2. To identify the strengths and weaknesses of employees to place right men on right
job.
3. To maintain and assess the potential present in a person for further growth and
development.
4. To provide a feedback to employees regarding their performance and related status.
5. To provide a feedback to employees regarding their performance and related status.
6. It serves as a basis for influencing working habits of the employees.
7. To review and retain the promotional and other training programmes.
Process of Performance Appraisal
1. Establish Performance Standards
Process of Performance Appraisal
1. Establish Performance
Standards
2. Communicate Performance Expectations to Employees • The managers must
determine what outputs,
accomplishments and skills
will be evaluated.
3. Measure Actual Performance
• These standards should have
evolved out of job analysis
and job descriptions.
4. Compare Actual Performance with Standards • be clear and objective to be
understood and measured.
• not be expressed in an
articulated or vague manner
5. Discuss the Appraisal with the Employee such as “a good job” or “a
full day’s work” as these
vague phrases tells nothing.
6. Initiate Corrective Action
2. Communicate Performance
Expectations to Employees
• the performance standards
are established, this need to
be communicated to the
respective employees so
that they come to know
what is expected of them.
• the standards may be
modified or revised in the
light of feedback obtained
from the employees. It is
important to note that
communication is a two-way
street.
3. Measure Actual
Performance
• the actual performance of
the employee is measured
on the basis of information
available from various
sources such as personal
observation, statistical
reports, oral reports, and
written reports.
• the evaluator’s feelings
should not influence the
performance measurement
of the employee
• based on facts and findings.

4. Compare Actual 5. Discuss the Appraisal with

7 Evaluation Criteria for Designing an Appraisal
6. Initiate Corrective Action
Performance with Standards the Employee

• the actual performance is
compared with the
predetermined standards.
• such a comparison may
reveal the deviation between
standard performance and
actual performance and will
enable the evaluator to
proceed to the fifth step in
the process, i.e., the
discussion of the appraisal
with the concerned
employees.
• communicate to and discuss
with the employees the
results of the appraisal.
• A discussion on appraisal
enables employees to know
their strengths and
weaknesses.
• impact may be positive or
negative depending upon
how the appraisal is
presented and discussed with
the employees.
Programme
• The areas needing
improvement are identified
and then, the measures to
correct or improve the 1. Quality
performance are identified
and initiated. 2. Quantity
• The corrective action can be
of two types. 3. Timeliness
• Putting out Fires: One is
immediate and deals 4. Cost effectiveness
predominantly with
symptoms.
5. Need for supervision
• The other is basic and 6. Interpersonal ImpactS
delves into causes of
deviations and seeks to 7. Community service
adjust the difference
permanently
Methods of Rating Scales

Performance Traditional Confidential Report

Ranking Method
Appraisal Paired Comparison Method
Traditional Methods of Performance Appraisal
Methods
Grading System
Checklist Method
Forced Choice Method 1. Rating Scales 8. Essay Method
Essay Method
Performance Tests and Observation 2. Confidential Report 9. Performance Tests and Observation
Forced Distribution Method
Field Review Method.
3. Ranking Method 10. Forced Distribution Method
Assessment Centres 4. Paired Comparison Method 11. Field Review Method.

Modern Human Resource Accounting

Psychological Appraisals
5. Grading System
6. Checklist Method
Methods Management by Objectives (MBO)
360 Degree Feedback
7. Forced Choice Method

Psychological Appraisals

1. Rating Scales Method

Rating Method

• This is one of the most widely used performance evaluation technique.

• The evaluator is asked to rate employees on the basis of job related characteristics and
knowledge of job.
• These can broadly be grouped as employee characteristics and employee contribution.
• Employee characteristics : leadership qualities, initiative, industriousness attitude, cooperation,
interest, creativity, loyalty, decision making ability, analytical ability, dependability etc.
• Employee contribution : responsibility, quality of work, achievement of targets, versatility,
relations with fellow employees and superiors etc. The performance is evaluated on the basis of
these traits on a continuous scale
• an employee is numerically rated from 1 to 10 on various job performance criterions like
attendance, attitude, performance, output, sincerity, dependability, initiative, etc.
• The employee may be rated by his/her superiors, colleagues or even customers, depending
upon the nature of job
 Types of Rating Scale
Ordinal Scale
• An ordinal scale is a scale the depicts the
answer options in an ordered manner.
• The difference between the two answer
option may not be calculable but the
answer options will always be in a certain
innate order.
• Parameters such as attitude or feedback
can be presented using an ordinal scale.
• Ex. Ok, Happy, Unhappy, Veryhappy
Interval Scale
Likert Scale
1. The scale is named after its inventor, psychologist Rensis Likert(1932)
• An interval scale is a scale where not only
is the order of the answer variables 2. A Likert scale is a question which is a five-point or seven-point scale.
established but the magnitude of
difference between each answer variable is 3. The choices range from Strongly Agree to Strongly Disagree so the survey
also calculable. maker can get a holistic view of people’s opinions.
• Absolute or true zero value is not present 4. All Likert scales also include a mid-point e.g neither agree nor disagree, for
in an interval scale. those who are neutral on the subject matter.
• Temperature in Celsius or Fahrenheit is
the most popular example of an interval 5. A Likert scale is the result of the survey.
scale.
• Net Promoter Score, Likert Scale, Bipolar
Matrix Table are some of the most
effective types of interval scale.

Key factors assessed in Confidential Report

2. Confidential Report writing
1. Confidential report is the method of evaluating employee’s performance and taking 1. Character and conduct of an employee
necessary actions without giving any feedbacks to the employees. 2. Absenteeism of an employee
2. Confidential report should only be viewed by authorized personnel. Therefore, it is not 3. Knowledge of an employee
send openly but in sealed envelope. 4. His nature and quality of work
3. Such method of performance appraisal is conducted yearly. 5. Punctuality of employee
4. Confidential report usually highlights the strengths and weaknesses of the employees 6. Unauthorised absenteeism or leave without permission
5. Used only in government organizations and not in other forms of organization as it does 7. Behaviour of an employee with colleagues, superiors and with public
not provide any feedback to the employees. Employees are deprived of information such
as how is he evaluated. 8. Ability of supervision and controlling
9. His/her integrity and honesty
6. Employees have to directly face the consequence (either positive or negative) of the
appraisal. 10. If any complaints against employee
 3. Ranking Method
1. Ranking is one of the simplest methods of performance appraisal.
2. Under this method, employees are ranked from the best to the worst according to their
performance level, the manager compares an employee to other similar employees,
rather than to a standard measurement.
3. The best performing employees are ranked #1 and the least performing one is ranked the
last. Based on these rankings, the companies may take any actions, from promotion to
termination.
4. Although ranking method of performance appraisal is considered to be an easier approach,
it becomes problematic and full of issues when conducted in a large scale.
5. Also, this method of performance appraisal is criticized because it is unsystematic and
results are often drawn on the basis of snap judgment.
5. Grading System
1. Under this technique of performance evaluation certain categories of
worth are determined in advance and they are carefully defined.
2. These selected and well defined categories include grade ‘A’ for
outstanding, ‘B’ for very good, ‘C’ for average, ‘D’ for poor etc.
3. These grades are based on certain selected features of employees such as
knowledge, judgment, analytical ability, leadership qualities, self
expression etc.
4. The actual performance of employees is compared with the above grades
and employees are allotted grades that speak for their performance.
4. Paired Comparison Method
1. Under this method, the pairs of employees of same job post or level are formed,
following which they are evaluated on the basis of performance of each other.
2. Subjects like skills, experience, team player, behavior, etc. are evaluated by the raters and
picks the best performing employee.
3. The raters are provided with a bunch of slips, each containing a pair of names of
employees.
4. The employee whom raters consider to be the best is given a tick mark and the process is
repeated for all pairs.
5. At the end, the employee who succeeds to get the most tick is considered to be the best
while the employee getting least ticks is comparatively considered poor.
6. it becomes very difficult for companies with large number of employees to form pairs
6. Checklist Method
1. Checklist method is another of the easiest methods of appraising employee’s performance.
2. Under this method, a checklist is prepared by the HR manager and is forwarded to the rater.
3. The checklist may include list of questions (depicting behavior and job performance of
employee) and the rater has to answer them in just ‘YES’ or ‘NO’ form.
4. The rater analyzes the question and the employee, and based on his views, he answers them.
5. Such questions also carry some scores (equal or different), depending upon the nature or
importance, which is totaled at the end of the procedure by the HR manager.
6. This method is helpful not only in evaluating employee’s job performance but also in
evaluating degree of uniformity of the rater by giving him two similar questions in different
manner
 7. Force Choice Method(J.P Guilford)
1. Under this approach, the HR manager, at first, prepares a set of positive as well as negative
statements.
2. The statements are then forwarded to the rater, following which the rater indicates which of
the given statements suits the employee.
3. Once the rater finishes evaluating all employees, the report is sent to the HR manager for
final assessment.
4. Both positive as well as negative, carries certain score set by the HR manager, which is not
even revealed to the rater.
5. It makes the process more objective.
6. The scores are at last summed up and conclusion is withdrawn. The employees with high
scores are ranked at the top while least scoring employees are ranked at the bottom.

Force Choice Method 8. Essay Methods

1. The detailed description of the employee performance is written by the rater.
Advantages Disadvantages 2. The performance of an employee, his relations with other Co-workers, requirements of
training and development programs, strengths and weaknesses of the employee, etc. are
some of the points that are included in the essay.
• is the absence of • the statements may 3. The efficiency of this traditional method of performance appraisal depends on the writing
personal bias in rating not be properly skills of the rater.
framed-they may not 4. Essay method helps in collecting a lot of information about the employees as the evaluators
be precisely descriptive are not confined to appraise the employees in rigidly defined criteria.
of the ratee’s traits. 5. The process is unrestricted and flexible, permitting the employers to emphasize on any issues
or traits that they feel relevant.
6. The reports being descriptive in nature, it is difficult to compare and contrast them or
withdraw any conclusion.
 9. Performance Tests and Observations
1. The test either written or oral is conducted to test the knowledge and the
skills of employees.
2. Sometimes the employee is asked to demonstrate his skills in the given
situation and then he is evaluated on that basis.
3. The test may be of the paper-and-pencil variety or an actual demonstration
of skills. The test must be reliable and validated to be useful
10. Force Distribution Method(Tiffin, 1990s)
1. Employers or raters are found to have tendency to rate their employees near average
or above average performing categories.
2. In around late 90s, Tiffen introduced a new method of performance appraisal call
forced distribution, in an attempt to eliminate the flaws of the raters.
3. Under this method, raters are forced to divide his employees evenly into certain
categories which vary from organization to organization. The categories can be poor,
average, good and excellent or percentile based like 10% poor, 40% fairly good, 40%
good and 10% excellent.
4. This method of performance appraisal is based on the assumption that employee’s job
performance conforms to the normal distribution curve i.e. a bell shaped curve.Hence,
the rater is compelled to put employees on each point on the scale.

Force Distribution Methods

Advantages Disadvantages

• The forced distribution • The major weakness of the

method seeks to overcome
the problem of errors in
rating is leniency by
compelling the rater to
distribute the ratees on all
points on the rating scale.
forced distribution method
lies in the assumption that
employee performance
levels always conform to a
normal (or some other)
distribution.
 11. Field Review Method 11. Field Review Method
1. This is an appraisal by someone outside the assessee’s own department,
usually someone from the corporate office or the HR. department. Advantages Disadvantages
2. The outsider reviews employee records and holds interviews with the • evaluate employees’ • The rater is not familiar with
ratee and his or her superior. performance is helpful in employees, making it
3. The method is primarily used for making promotional decisions at the completely eliminating issues impossible for him to observe
managerial level. that arise due to rater’s their actual behavior.
biasedness • The rater might feel aggrieved
4. Field reviews are also useful when comparable information is needed
from employees in different units or locations. in cases when employees try
to clarify any matter.

12. Critical Incident Methods 12. Critical Incident Methods

1. The critical behavior of each employee that make a difference in the Advantages Disadvantages
effective or non-effective performance is recorded by the supervisor and • the evaluation is based on actual • Negative incidents are generally
is taken into consideration while evaluating his performance. job behaviour. more noticeable than positive
• reduces the recency bias, if raters ones.
2. Giving job-related feedback to the ratee is also easy. record incidents throughout the • The recording of incidents is a
rating period. chore to the supervisor and may
3. this approach can increase the chances that the subordinates will improve be put off and easily forgotten.
• The feedback may be too much at
because they learn more precisely what is expected of them.
one time and thus appear as a
punishment to the ratee.
 13. Behaviorally Anchored Rating Scales
1. The descriptive statements about employees’ behavior, both effective
and ineffective are put on the scale points,
2. The rater is asked to indicate which behavioral point describes the
employee behavior the best.
Features of BARS
1.Areas of performance to be evaluated are identified and defined by the people who will use
the scales.
2. The scales are anchored by descriptions of actual job behaviour that, supervisors agree,

3. Behaviourally anchored scales sometimes called behavioural expectation
scales
4. They are said to be behaviourally anchored in that the scales represent a
range of descriptive statements of behaviour varying from the least to the
most effective.
represent specific levels of performance. The result is a set of rating scales in which both
dimensions and anchors are precisely defined.
3. All dimensions of performance to be evaluated are based on observable behaviours and are
relevant to the job being evaluated since BARS are tailor-made for the job.
4. Since the raters who will actually use the scales are actively involved in the development
process, they are more likely to be committed to the final product.

Modern Methods of Performance Appraisal

Assessment Centre

Human resources Accounting

Psychological Appraisal
Modern Method of
Performance Appraisal
Management by Objective

360 degree feedback

720 degree feedback

 1. Assessment Centre 1. Assessment Centre
1. The introduction of the concept of assessment centres as a method of performance method
is traced back in 1930s in the Germany used to appraise its army officers. Advantages Disadvantages
2. The concept gradually spread to the US and the UK in 1940s and to the Britain in 1960s.
• The assessment centres provide • The technique is relatively costly
3. The assessment center is the central location where the managers come and perform the job
exercises.
include more accurate evaluation, and time consuming, causes
minimum biasedness, right suffocation to the solid
4. Here the assessee is requested to participate in in-basket exercises, role playing, discussions, selection and promotion of performers, discourages to the
computer simulations, etc.
executives, and so on. poor performers (rejected),
5. Where they are evaluated in term of their persuasive ability, communication skills, breeds unhealthy competition
confidence, sensitivity to the feelings of others, mental alertness, administrative ability, etc. among the assessees, and bears
6. This entire exercise is done under the trainer who observes the employee behavior and then adverse effects on those not
discusses it with the rater who finally evaluates the employee’s performance. selected for assessment.

An MBO programme consists of four main steps: Goal setting, Performance

Standard, comparison, and Periodic review

2. Management by Objectives(MBO)
Goal Setting Performance Setting Comparison Periodic Review
1. Peter F. Drucker propounded a new concept, namely, management by .
objectives (MBO) way back in 1954 • The superior and • the standards are • enables the • corrective
subordinate set for the evaluator to find measure is
2. The concept of MBO as was conceived by Drucker, can be described as a jointly establish employees as per out the reasons initiated when
“process whereby the superior and subordinate managers of an these goals. the previously variation between actual
organization jointly identify its common goals, define each individual’s • The goals refer to arranged time the actual and performance
major areas of responsibility in terms of results expected of him and use the desired period. standard deviates from the
these measures as guides for operating the unit and assessing the outcome to be • When the performance of standered
achieved by each employees start the employees established in the
contribution of each its members”. first step-goal-
individual performing their • Such a
3. MBO is not only a method of performance evaluation. It is viewed by the employee. jobs, they come comparison helps setting stage.
Practicing managers and pedagogues as a philosophy of managerial practice to know what is to devise training
be done, what has needs for
because it is a method by which managers and subordinates plan, organise, been done, and increasing
communicate, control and debate. what remains to employees’
be done performance
 Advantages Disadvantages/ Limitations

• i. It ensures effective management.
• ii. MBO focuses on ‘results’ rather than
merely planning activities.
• iii. It makes managers to think how the
objectives can be achieved and what
resources are required.
• iv. It ensures the standard of control system.
• v. It brings out organisational lapses like
overlapping of authority, delegational faults
and ineffective communication, etc., for
necessary rectification
• vi. It promotes individual’s commitment for
better performance.
• vii. It ensures objectivity and reduce the
element of pure judgement.
3. Psychological Appraisals
• (i) Setting Un-measurable Objectives
• (ii) Time-consuming
• (iii) Lack of Trust
1. This is one of the most frequently used modern methods of performance
appraisal, wherein the psychologist assesses the employee’s potential for
the future performance rather than the past one.
2. Under this method, the psychologist conducts the in-depth interviews,
psychological tests, discussions with the supervisors and the reviews of
other evaluations.
3. This assessment is done to determine the intellectual, emotional,
motivational and other related characteristics of an employee that is
necessary to predict his potential for the future performance.

Advantages Disadvantages

4. Human Asset Accounting Method • a) It reveals strengths and

weaknesses of the employees.
• (a) Response from peers (colleagues)
and subordinates may be biased.
1. This method represents activities mostly concerned with money estimates • (b) The gap between self-assessment • (b) Performance in terms of attaining
the value of internal human organisation and its external customers’ and the views of one’s colleagues is goals is ignored.
goodwill. reduced. • (c) Feedback may cause frustration
• (c) When peer group assessment is and resentment among the
2. This is ascertained by establishing a relationship between the costs
included in performance appraisal, employees.
involved in retaining the employee, and the benefits an organisation
derives from Him/her. teamwork thrives. • (d) 360° appraisal is a complex and
• (d) Inflexible managers are forced to time consuming appraisal technique.
3. Day-to-day value of a firm’s human organisation can be estimated by initiate self-change.
developing procedures, knowing the periodic measurements of ‘Key • (e) It helps improve overall quality of
Casual’ and ‘ ‘Intervening enterprise’ variables. the staff because each member is
helping the others to improve.
 Performance Appraisal Biases
6. 720 Degree Appraisal 1.First Impression (primacy effect)
1. This is an another feedback method, wherein the assessment is done 2.Halo Effect
not only by the stakeholders within the company but also from the
groups outside the organization. 3.Horn Effect
2. These external groups who assesses the employee’s performance are 4.Excessive Stiffness or Lenience
customers, investors, suppliers and other financial institutions. Performance Appraisal Biases
3. It is one of the most crucial modern methods of performance appraisal 5.Central Tendency
because this is the only group that determines the success of the
6. Personal Biases
organization as a whole.
7.Spillover Effect
8.Recency Effect

3.Horn Effect 4.Excessive Stiffness or Lenience

1.First Impression (primacy effect)
• Raters form an overall impression
about the ratee on the basis of
some particular characteristics of
the ratee identified by them.
• The identified qualities and
features may not provide
adequate base for appraisal.
2.Halo Effect
• The individual’s performance is
completely appraised on the basis
of a perceived positive quality,
feature or trait.
• In other words this is the tendency
to rate a man uniformly high or
low in other traits if he is extra-
ordinarily high or low in one
particular trait.
• If a worker has few absences, his
supervisor might give him a high
rating in all other areas of work
• Depending upon the raters own
• The individual’s performance is standards, values and physical and
completely appraised on the basis of a mental makeup at the time of appraisal,
ratees may be rated very strictly or
negative quality or feature perceived. leniently.
• Some of the managers are likely to take
• This results in an overall lower rating the line of least resistance and rate people
high, whereas others, by nature, believe in
than may be warranted. “He is not the tyranny of exact assessment,
formally dressed up in the office. He considering more particularly the
drawbacks of the individual and thus
may be casual at work too! making the assessment excessively severe.
• The leniency error can render a system
ineffective. If everyone is to be rated high,
the system has not done anything to
differentiate among the employees.
 5.Central Tendency 6.Personal Biases 7.Spillover Effect 8.Recency Effect

• Appraisers rate all • The way a supervisor • The present • Rating is influenced
employees as average
performers.
feels about each of
the individuals
working under him -
performance is
evaluated much on
the basis of past
by the most recent
behaviour ignoring
the commonly
HRM – HR Models – Part I
• That is, it is an
attitude to rate whether he likes or performance. “ demonstrated NTA UGC NET/JRF 2021
people as neither dislikes them - as a • The person who was behaviours during the Industrial Relations and Labour welfare/HRM
high nor low and tremendous effect on a good performer in entire appraisal
follow the middle the rating of their distant past is assured period. CODE 55
path performances. to be okay at present Paper 2
• . For example, a • Personal Bias can also”
professor, with a view stem from various
to play it safe, might sources as a result of Presented by
give a class grade information obtained
from colleagues, Lakshmi Kushwaha
near the equal to B,
regardless of the considerations of Follow me : Unacademy.com/@lakshmikushwaha12-6214
differences in faith and thinking, Rate, Review, Feedback, Share
individual social and family
performances. background and so Telegram Group: NET/JRF HRM Learner
on.

HRM Models Fombrun’s human resource cycle model

(1984)/Matching Model
Fombrun’s human resource cycle
model (1984)
1. The Michigan model by Fombrun (1984) explains strategic HRM that focused on
The Harvard framework for human management, professional groups, and the new labor force.
resource management (1992)
2. Matching model was developed by Fombrun, Tichy, and Devanna' in Michigan
school.
HRM Models Guest’s model of HRM 3. Matching model ensures way to achieve the organizational objectives is the
applying of above five major functions of HRM very effectively.
4. The main motive of the model was to align the formal structure of the
Best HRM practices model organization, their new strategies, and policies with the human resource system.
5. They saw the employees of the firm as a strategic resource to have a competitive
advantage
Storey’s hard and soft HRM
practices (1989)
 Fombrun’s human resource cycle model
(1984)/Matching Model
The model interlinks remuneration, assessment, development, and selection
implying that there must be a horizontal alignment.
The Harvard framework for human resource
management (1992)
1. Boxall and Beer from Harvard proposed the Harvard Framework of Human Resource
Management in 1992 (Beer, Boselie, & Brewster, 2015).
2. They believed in the combination of systems as bureaucrats, markets and clan approach. This
can remove the limitations of a single model and hence increase efficiency, innovativeness,
and reliability towards the organization’s strategies (O’Riordan, 2017).
3. This model includes the global development of businesses, the power of different
stakeholders like government, labor union, management, and link corporates with human
resource strategies (Poole, 2015).
4. They started with the proposition that: ‘Human resource management (HRM) involves all
management decisions and actions that affect the nature of the relationship between the
organization and employees – its human resources’

The Harvard framework for human resource

management (1992)
1. In the globalized world, where economies are fluctuating, technologies are
advancing, and customer demands are changing, organizations are forced to
adopt the Harvard model on a practical basis.
2. This model comprises of several situational factors, interests of the
stakeholders, a long-term approach and feedback process.
3. Their main objective is to resolve the problem of historical personnel
management of traditional and routine functions (Campbell, 2003). Harvard
model uses modern techniques and strategic functions
 Guest Model of HRM Guest Model of HRM
1. This model was developed by David Guest in 1997. 1. The Guest’s model is based on 4 key components:
2. It explains how HRM is different from personnel management (Morrow, 2. Strategic Integration: should have the capacity or ability of maintaining a proper balance its
2000). business and HRM strategies and is related to the hard aspect of HRM.

3. It works on the assumption that the human resource manager begins with
certain strategies, which will result in outcomes.
4. The model integrates HRM practices leading to superior individual and
organizational performance (Mbongaya, 2006).
5. The model is prescriptive in the sense that it is based on the assumption
that HRM is distinctively different from traditional personnel management
(rooted in strategic management, etc.)
3. Flexibility: Once gains the ability of adjusting to the changes of the business environment
and work behavior, it automatically will acquire the flexibility element which comprises of
both soft and hard HRM
4. High Commitment: it relates to the employee commitment and identification towards
Harrods which eventually will show their commitment in going an extra mile whenever
required.
5. Quality: it states that if employees are managed by adopting qualitative measures, it will
influence their productivity and will a positive impact on the services provided to customers.
(Guest, 2010)

Guest Model of HRM

David Guest's (1989, 1997) model of HRM has 6 dimensions of analysis:
1. HRM strategy
2. HRM practices
3. HRM outcomes
4. Behaviour outcomes
5. Performance outcomes
6. Financial outcomes
Guest has acknowledged that the concept of commitment is 'messy' and that the relationship
between commitment and high performance is (or, perhaps, was - given the age of this material)
difficult to establish. It also employs a 'flow' approach, seeing strategy underpinning practice,
leading to a variety of desired outcomes.
 Best HRM practices model/The Universalistic Best HRM practices model/The Universalistic
Model Model
1. The best practice model is one that can be applied universally (Johnson, Various Practices are
2000). For the best fit, human resource policies must be aligned with 1. Employment security,
business strategy and objectives.
2. Selective hiring,
2. This can be done by checking regularly on the needs of the organization as
3. High compensation based on performance,
well as employees. The best practice leads to superior business employees.
4. Self-managed teams,
3. These processes help the organization to have a comparative advantage.
5. Training to have skilled workers,
4. There are various practices that are universal in nature and adopting them
leads to the superior performance of the organization. 6. Equality among workers,
7. Sharing essential information with the employees of the firm.

Best HRM practices model/The Universalistic Storey’s hard and soft HRM practices (1989)
Model The model was developed by John Storey in 1989 (Truss, Gratton, Hope‐Hailey,
McGovern, & Stiles, 1997).
1. There needs to be an interaction between the organization and the Hard Form Soft Form
environment so that the policies are executed in favor of the organization.
• Focuses on the resource side of human • Soft HRM that focuses on the human
2. One strategy if fitted in one organization does not necessarily mean that resources. side.
it will fit in another. • It focuses on notions of tight strategic • This lays importance on communication
3. This can be due to different external environment, availability of control. among employees and motivation
• It emphasizes the role of management in among them to lead the organization.
resources, technology, management style, and working practice.
cutting the cost by keeping only the • They consider employees as a valuable
4. Hence it is best to think of good practices rather than the best practices. required number of workers in the asset and a source of competitive
organization. advantage because of their
• Its main elements are close integration commitment, reliability, skills, and
of human resource policies, systems, and efficiency.
activities with business strategy. • This form takes the employees to
determine strategic objectives
 Storey’s hard and soft HRM practices (1989)
1. Fombrun’s model uses a hard form of HRM while the Harvard model uses soft form.
2. “HRM rhetoric is generally soft and reality predominantly hard” (Gill, 2009).
3. Thus, this model can be used to illustrate the gap between rhetoric and reality in
workforce management.
4. The disadvantage of hard HRM is that people get tired of control. The control may lead to
productive efficiency for some time but in the long run, the strategy will collapse.
5. In soft HRM the cost of training, enhancing skills, increased wages, number of staff for
support increases. Due to collaborative decisions, decision making is delayed.
6. Sometimes, the middle managers in such a framework are discouraged as they may not
find their value appreciated.
The Warwick Model
1. The Warwick HRM Model was constructed by the researchers Chris Hendry and
Andrew M. Pettigrew at the University of Warwick in the early 1990s.
2. Developed from the Harvard Model, this HRM framework represents an analytical
approach to HRM.
3. The strength of the model is that it identifies and classifies important environmental
influences on HRM.
4. It maps the connection between the external and environmental factors and explores
how human resource management adapts to changes in the context.
5. those organizations achieving an alignment between the external and internal contexts
will achieve performance and growth.

The Warwick Model

Similarly to the Harvard Model, the Warwick framework focuses on five different
elements:
1. The outer context (which includes political, technical, and competitive factors,
among others);
2. The inner context (concerning the structure, leadership, culture, task-
technology);
3. Business strategy content (representing company objectives, product market,
and general strategy);
4. HRM context (including role, definition, organisation, HR outputs);
5. HRM content (HR flow, reward systems, employee relations, work systems, and
other aspects).
 The 5 P’s Model The 5 P’s Model
1. Mildred Golden Pryor, Chris White, and Leslie Toombs developed the 5Ps model as a tool The 5P’s Model defines;
for small business owners to monitor long-term organizational survival and success. 1. Purpose as the organisation’s vision, mission, and primary objectives;
2. They deemed it necessary to develop a simple tool for smaller businesses for strategic 2. Principles are defined as operational protocols set to lead to achieving a
direction and for the strategy execution. They called this element of their framework purpose;
3. (1) purpose. 3. Processes include organisation architecture, systems, and methods of
4. The other four elements of the 5Ps are operation;
4. People are the vital HR resource performing tasks in line with the appointed
5. (2) principles, (3) processes, (4) people, and (5) performance principles and processes;
6. According to the 5P’s HRM Model, organisational performance directly depends on the 5. Performance, ultimately, is a result that can be measured by the appropriate
performance of people engaged in processes and guided by organisation purposes and standards.
principles.

The 5 P’s Model

In the 5Ps model

which in turn is Structure then

which lead to
purpose drives defined by drives the
improved
structure principles and behaviors of
performance
processes people,

Through feedback loops all three levels reconnect individually with purpose and guide
the improvement processes in an organization.
 HRM – HR Models – Part II
NTA UGC NET/JRF 2021
Industrial Relations and Labour welfare/HRM
CODE 55
Paper 2
Presented by
Lakshmi Kushwaha
Follow me : Unacademy.com/@lakshmikushwaha12-6214
Rate, Review, Feedback, Share
The Standard Causal Model of HRM
1. The best-known HR model is the Standard Causal Model of HRM.
2. The model is derived from many similar models published throughout the 90’s and early
2000’s.
3. The model shows a causal chain that starts with the business strategy and ends, through
the HR processes, with (improved) financial performance.
4. The model thus shows how HR activities that are aligned with organizational strategy lead to
business performance.
5. According to this model, HR will only be effective if its strategy is aligned with business
strategy (in line with the best-fit theory). HR strategy is thus derived from the overall
strategy.
The 8-box model by Paul Boselie
1. A different HR model that’s often used to model what we do in HR, is the 8-box model by
Paul Boselie
2. The 8-box model shows different external and internal factors that influence the
effectiveness of what we do in HR.
3. First of all, you see the external general market context, the external population market
context, the external general institutional context, and the external population institutional
context. These are external forces that influence how we do HR.
4. For example, if there is a shortage of certain skills in the market, this influences how we do
our sourcing, recruiting, and hiring, compared to when there’s an abundance of qualified
workers. The institutional context also changes: legislation impacts the way we work in HR
(e.g. the day-to-day impact of HR) while trade unions and work councils limit what we can
do.
 The core process in the middle starts with the configuration. The company’s history, culture and the technology
used are all factors that influence how we communicate in HR, what we want to achieve, and how effective we
are in our HR policies. All these factors influence our HR strategy.
The HR strategy consists of six parts:
1. Intended HR practices:
The intention we have with our recruitment, training, and other practices matters but this model shows it’s
only a starting point.
2. Actual HR practices:
We can have great intentions but the execution of HR practices is a cooperation between HR and the
manager. When the manager decides to do things differently, the intention can be nice but the actual
practices can be very different.
3. Perceived HR practices:
This is how the employee perceives what’s going on in the organization. HR and the manager can do their
absolute best but if their activities are perceived in a different way than they were intended and actually
done, the perception will not mirror the actual HR practices.
4. HR outcomes:
The perceived HR practices (hopefully) lead to certain HR outcomes. These are similar to the ones in the
Standard Causal Model of HR, described above.
5. HR outcomes lead to critical HR goals (i.e. cost-effectiveness, flexibility, legitimacy, and so on), which in turn
leads to ultimate business goals (i.e. profit, market share, market capitalization – all related to the viability
of the organization, and other factors that help to build a competitive advantage).

The HR value chain

The HR value chain is one of the best-known models in HR. It is based on the work of Paauwe
and Richardson (1997) and creates a nuance on the models above in regards to how HR
operates.
According to the HR value chain, everything we do (and measure) in HR can be divided into two
categories: HRM activities and HRM outcomes.
HRM activities are day-to-day activities, including recruitment, compensation, training, and
succession planning. These activities are often measured using HR metrics. These are so-called
efficiency metrics. The cheaper we hire and the faster we train, the better.
HRM outcomes are the goals we try to achieve with the HRM activities. We recruit, we train,
and we compensate to achieve certain goals/ outcomes. These outcomes include employee
satisfaction, motivation, retention, and presence.
 Detailed course on HRM
Compensation Management Introduction
NTA UGC NET/JRF 2021 1. Compensation is referred to as money and other benefits received by an employee for
Industrial Relations and Labour welfare/HRM providing services to his employer.
CODE 55 2. Compensation refers to all forms of financial returns: tangible services and benefits
Paper 2 employees receive as part an employment relationship, which may be associated with
employee’s service to the employer like provident fund, gratuity, insurance scheme
and any other payment which the employee receives or benefits he enjoys in lieu of
Presented by such payment.
Lakshmi Kushwaha
3. Compensation can be in the form of cash or kind.
Follow me : Unacademy.com/@lakshmikushwaha12-6214
Rate, Review, Feedback, Share 4. Compensation may be defined as money received in the performance of works, plus the
many kinds of benefits and services that organizations provide their employees.
Telegram Group: NET/JRF HRM Learner

LAKSHMI KUSHWAHA TELEGRAM : NET/JRF HRM LEARNER LAKSHMI KUSHWAHA TELEGRAM : NET/JRF HRM LEARNER

Dale Yoder Beach : wage and salary administration

• Compensation is paying people for work”
Keith Davis
• Compensation is what employees receive in exchange for their contribution to the
organization
Edwin B. Flippo
• “The function compensation is defining as adequate and equitable remuneration of
personnel for their contributions to the organizational objectives”.
Cascio
• Compensation includes direct cash payments, indirect payments in the form of employee
benefits and incentives to motivate employees to strive for higher levels of productivity
LAKSHMI KUSHWAHA TELEGRAM : NET/JRF HRM LEARNER
• “Wage and salary’ administration refers to the establishment
and implementation of sound policies and practices of
employee compensation.
• It includes such areas as job valuation, surveys of wages and
salaries, analysis of relevant organizational problems,
development, and maintenance of wage structure,
establishing rules for administering wages, wage payments,
incentives, profit sharing, wage changes and adjustments,
supplementary payments, control of compensation costs and
other related items.”
LAKSHMI KUSHWAHA TELEGRAM : NET/JRF HRM LEARNER
 Different Types of Compensation(Schuler)
Non-monetary Compensation
• It includes any benefit that an
employee receives from an
employer or a job that does not
involve tangible value.
• Examples are career
development and advancement
opportunities, opportunities for
recognition, as well as work
environment and conditions.
Direct Compensation
• Direct Compensation comprises
of the salary that is paid to the
employees along with the other
health benefits.
• Money, employee’s base wage
which can be an annual salary or
hourly wage and any
performance-based pay that an
employee receives
• These include the basic salary,
house rent allowances, medical
benefits, city allowances,
conveyance, provident funds,
etc. It also includes bonuses,
payments for holidays, etc.
Indirect Compensation
• Indirect compensation can be
thought of as the nonmonetary
benefits an employee gets from
the organization
• It includes everything from
legally required public
protection programs such as
Social Security to health
insurance, retirement
programs, paid leave, childcare
or moving expenses.
• life, accident, health insurance,
the employer’s contribution to
retirement, pay for a vacation
Compensation Management
1. Compensation management, also known as wage and salary administration,
remuneration management, or reward management, is concerned with
designing and implementing total compensation package.
2. Compensation or reward management is concerned with the formulation
and implementation of strategies and policies which are to reward people
fairly, equitably and consistently in accordance with their value to the
organizations and to help the organization to achieve its strategic goals.
3. It deals with the design, implementation and maintenance of reward systems
which aim to meet the needs of both the organization and its shareholders.

LAKSHMI KUSHWAHA TELEGRAM : NET/JRF HRM LEARNER LAKSHMI KUSHWAHA TELEGRAM : NET/JRF HRM LEARNER

Pre-requisites for Effective Compensation

Objectives of Compensation Management Management
1. To attract competent and qualified persons towards organization by offering fair wage and incentive.
1.Adequate Minimum governmental, union, and managerial pay
2. To retain present employees by paying competitive remuneration.
level positions must be met by the compensation
3. To establish fair and equitable remuneration so as to avoid pay disparities. system.
4. To improve production, productivity and profitability of the organization.
5. To minimize un-necessary expenditure and to control cost through a device of internal check and
establishment of standard. 2.Equitable Care should be taken so that each employee is paid
6. To improve and maintain good human relation between employer and employee through a process of fairly, in line with his/her abilities, efforts, education,
payment of bonus, profit sharing and other fringes benefits. training, experiences, competencies, and so on.
7. To enhance the name and fame of the company through a proper system of wage payment.
8. To ensure prompt and regular payment of wage and salary to all the employees.

LAKSHMI KUSHWAHA TELEGRAM : NET/JRF HRM LEARNER LAKSHMI KUSHWAHA TELEGRAM : NET/JRF HRM LEARNER
3.Balanced Pay, benefits, and other rewards must provide a
reasonable compensation package
4.Secure Employees security needs must be adequately covered
by the compensation package
5.Cost-Effective Pay must be neither excessive nor inadequate,
considering what the enterprise can afford to pay
6.Incentive The compensation package should be such that it
Providing
generates motivation for effective and productive work.
7.Acceptable to All employees understand the pay system well and feel it
all Employees
is reasonable for the enterprise and the individual.
LAKSHMI KUSHWAHA TELEGRAM : NET/JRF HRM LEARNER LAKSHMI KUSHWAHA TELEGRAM : NET/JRF HRM LEARNER

Components of
Compensation Management

1.Wage or Salary 2. Allowances 3. Incentives

4. Fringe benefits
and perquisites
Components of Compensation: Wages
Fringe Benefits Perquisite
Wage Salary
Dearness Allowance Medical Care s Wage
Health & Group
Minimum Wage
Insurance • The term wage refers to the remuneration paid to the
House Rent
Fair Wage Allowance
Canteen workers appointed on hourly, daily or weekly basis in
uniform
return for the service rendered.
Living Wage City Compensatory
Allowance • It varies according to physical and mental requirement
of the job. Wage may be minimum wage, fair wage and
Transport
Allowance/Conveyan
living wage
ce Allowance

LAKSHMI KUSHWAHA TELEGRAM : NET/JRF HRM LEARNER LAKSHMI KUSHWAHA TELEGRAM : NET/JRF HRM LEARNER
 i. Minimum Wage ii. Fair Wage iii. Living Wage

• It is that wage which is sufficient • According to committee on fair • It is the wage that provides some

Components of Compensation: Salary

to meet the basic need of a
worker and his family.
• This minimum wage has to be
paid to the worker irrespective of
the capacity of the industry to
pay.
• The Committee on fair wage has
defined minimum wage as – “the
wage must provide not only for
the bare sustenance of life, but
for the preservation of the
efficiency of the workers.
• For this purpose, minimum wage
must provide some measures of
education, medical requirements
and amenities”.
wage “fair wage is the wage
which is above the minimum
wage but, below the living wage”.
• It is fixed between the minimum
wage and capacity to pay by the
industry.
• According to Fair Wage
• The lower limit of the fair wage is
the minimum wage; the upper
limit is set by the capacity of the
industry to pay.
of the comforts of life. It provides
certain amenities considered
necessary for the well-being of
the worker.
Committee “the living wage
Salary
should enable the male earner to
provide for himself and his family • The term salary refers to remuneration paid to the employees appointed
not merely the bare essentials of on monthly or annual basis in return for the service rendered. Thus it refers
food, clothing and shelter but
also a measure of frugal (using to monthly rate of pay irrespective of number of hours put in by employees.
only as much money or food as is
necessary) comfort including
education for children, protection
Take Home Salary
against ill health, requirements of
essential social needs and • It is the net amount of salary received by an employee after making all the
measure of insurance against the deductions towards the payment of income tax, LIC premium and
more important mis-fortunes
including old age contribution to P.F. etc.

LAKSHMI KUSHWAHA TELEGRAM : NET/JRF HRM LEARNER LAKSHMI KUSHWAHA TELEGRAM : NET/JRF HRM LEARNER

Components of Compensation: Dearness Components of Compensation: Dearness

Allowance
1. Under section 3 of the Minimum Wages Act, DA is described as cost of living
allowance. It is given to protect the real wages of workers during inflation.
In India it has become integral part of the wage system.
2. Along with DA other allowances like City Compensatory Allowance (CCA),
House Rent Allowance (HRA), Medical Allowance (MA), Education Allowance
(EA), Conveyance Allowance etc., also form the part of compensation
package.
Allowance
The Gregory Committee appointed by the Government of India thus suggested
the following principles for the payment of clearness allowances in India (in
1944):
a. The payment of DA should be limited to an income level of Rs. 200 pm.
b. The amount of DA should be fixed in terms of rupees and not in percentage of
basic pay.

3. However, inclusion of all these allowances in the compensation depends on c. The payment of additional DA should be considered on the basis of the CPI.
nature and type of job, contents of job, place of job, terms and condition of d. There should be a single DA in the same region.
appointment, capacity of employer etc.
e. The system of payment should be designed based on the extent of
neutralization of the rising cost of living.

LAKSHMI KUSHWAHA TELEGRAM : NET/JRF HRM LEARNER LAKSHMI KUSHWAHA TELEGRAM : NET/JRF HRM LEARNER

House Rent Allowance
• Companies who do not
provide living
accommodation to their
employees pay house
rent allowance (HRA) to
employees.
• This allowance is
calculated as a
percentage of salary.
Transport
City Compensatory
Allowance/Conveyance
Allowance
Allowance
• This allowance is paid • Some companies pay Components of Compensation: Incentives
basically to employees transport allowance (TA) 1. Incentive is a reward paid in addition to wages whether monetary or not
in metros and other big that accommodates that motivates or compensates an employee for performance above the
cities where cost of travel from the standard.
living is comparatively employee’s house to the
more. office. 2. Payment of incentive depends on productivity, sales and Profit of the
organization.
• City compensatory • A fixed amount is paid
allowance (CCA) is every month to cover a 3. Incentive compensation is performance-related remuneration paid with a
normally a fixed amount part of traveling view to encourage employees to work hard and do better.
per month, like 30 per expenses 4. Both individual incentives and group incentives are applicable in most
cent of basic pay in case cases. Bonus, gain-sharing, commissions on sales are some examples of
of government incentive compensation.
employees.

LAKSHMI KUSHWAHA TELEGRAM : NET/JRF HRM LEARNER LAKSHMI KUSHWAHA TELEGRAM : NET/JRF HRM LEARNER

Annual Bonus Other Forms of Bonus

Bonus is also regarded as an incentive for regular attendance, an encouragement for good
work, an award for excellence, and as an ex-gratia payment, depending upon the goodwill
Bonus related to performance are generally termed as:
of the employer.
i. Productivity bonus: extra payment for increasing the productivity
(a) Customary Bonus (b) Profit based Bonus

• his is a commitment of the organization
defined in their policy, such as ex-gratia
payment, attendance bonus, productivity
bonus, etc., which cannot be claimed as a
right but depends on the company’s policy
and plans.
• Customary bonus does not require
calculation of profit or availability of surplus.
It is a payment based on long usage.
• This award refers to the payment of the share ii. Performance bonus: award for increasing the efficiency or proving
of profit or extra earning achieved through
the efforts of the employees, and the oneself different from others
employee has a right to share in the increased
profits that are made in a particular period.
iii. Excellence bonus etc.: a reward for doing something special or
innovative.

LAKSHMI KUSHWAHA TELEGRAM : NET/JRF HRM LEARNER LAKSHMI KUSHWAHA TELEGRAM : NET/JRF HRM LEARNER
 Fringe Benefits and Perquisties
Fringe Benefits Perquisites (Perks) Functions of Compensation Management
• It is a general term used to describe • Perquisites also called perks are 1) The Equity Function
any of a variety of non-wage or the special benefits made available
supplemental benefits that only to the top executives of an (2) The Welfare Function
employees receive in addition to organisation.
their regular wages. • These may include company car, (3) The Motivation Function
• These include such employee furnished house, stock option
benefits as provident fund, scheme, club membership, paid (4) The Retention Function.
gratuity, medical care, holidays etc.
hospitalization, accident relief, paid
holidays, health and group
insurance, pension etc.

LAKSHMI KUSHWAHA TELEGRAM : NET/JRF HRM LEARNER

(1) The Equity Function (2) The Welfare Function (3) The Motivation Function (4) The Retention Function
• It is the first and foremost • This function is to take care of • The motivational function is • Today, human resources are
important function of their psychological and social to encourage an employee being considered as a
compensation which ensures need satisfaction. to take further challenges, valuable asset to the
that the employees are fairly • The employees worry about perform better and develop organization and because of
paid and that their worth is the family, and the liability oneself for superior retaining and developing
appropriately compared. should be reduced and their positions. the knowledge bank, the
• This function ensures that self-esteem needs should be retention of employees has
more difficult jobs are paid met to allow them to work • This function, therefore,
takes care of career plans become an important
more and that they are fairly without tension or unwanted
and training and function of compensation
compensated in comparison stresses.
to similar jobs in the market development activities. management.
Theories of Compensation
1. Subsistence Theory
Traditional Theories : 1. Subsistence Theory
Traditional Theories 2.Wage Fund Theory 1. Wages in the long term would be equal to what is required for subsistence of
workers- food, clothing, and shelter.
3. Residual Claimant
Theory 2. This is also known as the Iron Law of Wages.
Theories of
Compensation 3. David Ricardo, who propounded this theory, believed that if wages were
1. Reinforcement theory
more than what was required for mere subsistence, it would be temporary
because prosperity of the workers would soon increase the population and,
2. Expectancy Theory hence, the labour supply.
Contemporary Theories
4. This would depress wages and bring them down to the level of subsistence.
3. Equity Theory
5. Similarly, wages below the subsistence level would starve certain workers;
others would not marry. This will reduce the supply of workers and raise
4.Agency Theory
wages.

2. Wages Fund Theory 3. Residual Claimant Theory

1. J.S. Mill, who propounded this theory, has maintained that a certain fixed
proportion of the capital of a country is set apart for payment to labourers 1. Residual claimant theory, propounded by Francis Walker, states that
as wages. wages are the remainder of total industrial revenue after deduction of
2. He called this proportion as wages fund.
amount of rent, interest, and profit.
3. Thus, according to him, wages at any moment are determined by the
amount of money in the wages fund and the total number of labourers in 2. Thus, wages are determined after rent, interest, and profit.
the country.
4. If the fund remains constant and the supply of labour increases, wages
would fall, and vice versa. It is implied that if wages are forced up, capital
will leave the country.

Contemporary Theories : 1. Reinforcement Theory
1. Reinforcement theory, based on Skinner’s behaviour modification model,
suggests that people’s behaviour that has positive consequences is
repeated while the behaviour that has negative consequences is not
repeated.
2. Reinforcement is anything that strengthens or encourages someone’s
behavioural response in a given situation.
2. Expectancy Theory
1. Vroom, who has proposed expectancy theory, states that people will be motivated to do things to
achieve some goals on the expectation that their certain actions will help them to achieve the goals.
2. This theory is built around the concepts of valence, instrumentality, and expectancy.
3. Valence means the strength of an individual’s preference to a particular outcome.
4. For example, higher remuneration (in terms of performance-based pay or skill-based pay) is an
outcome which is valuable to an employee.

3. In the case of employee remuneration, reinforcement is the amount of
remuneration (including financial incentives) is the reinforcement.
4. Therefore, amount of remuneration should be such that motivates the
employees to engage in productive behaviour.
5. Instrumentality is the first-level outcome in obtaining a derived second-level outcome
6. For example, assume that the employee desires higher remuneration and feels that acquiring superior
skills is a very strong factor in achieving higher remuneration..
7. Expectancy is the probability that a particular action will lead to a particular first-level outcome. For
example, the employee may find out the probability of acquiring superior skills.

2. Equity Theory 3. Agency Theory

According to this theory, there should be equity or the uniformity in the pay structure of an
employee’s remuneration
Internal Equity
• The employee perceives the
fairness in different pay for
different jobs based on the
nature of work involved, i.e. he
must feel that pay differentials
among the jobs are fair.
External Equity
• The employee should feel the
fairness in what they are being
paid is in line with what other
players in the same industry
are paying to their employees
for the same kind of job.
This theory states that both the employer and the employee are the
stakeholders of the company, and the remuneration paid to the
Individual Equity employee is the agency cost.
• The employee perceives the The employee will try to get an increased agency cost whereas the
pay differentials among the employer will try to minimize it.
individuals who are performing
the same kind of a job and
within the same organization. Hence, the remuneration should be decided in such a way that the
Usually, an individual with interest of both the parties can be aligned.
more experience gets high
remuneration as compared to
the fresher irrespective of the
nature of a job.

Contingent Factors in Compensation Plan
Internal Factors
• 1. Organizational strategy
and attitude
• 2. Organizational culture
• 3. Nature and worth of job
• 4. Capacity to pay
• 5. Nature of human resource
1.Organization’s Strategy
• Organization’s overall strategy, though not a
step of compensation management, is the
starting point in the total human resource
management process including
compensation management
• Companies operating in different types of
market/product having varying level of
maturity, adopt different strategies and
matching compensation strategy and blend
of different compensation methods.
External Factors
• 1. Nature of HR market
• 2. Cost of living
• 3. Employee union
• 4. Legal framework
• 5. Socio-economic factors
In viewing the compensation from strategic
point of view, the companies do the
following:
• i) They recognize remuneration as a pivotal
control and incentive mechanism that can
be used flexibly by the management to
attain business objectives.
• (ii) They make the pay system an integral
part of strategy formulation.
• (iii) They integrate pay considerations into
strategic decision-making processes such as
those that involve planning and control.
• (iv) They view the company’s performance
as the ultimate criterion of the success of
the strategic pay decisions and operational
remuneration programmes.
Process for Compensation Management
5. Design and Implementation of compensation Plan
2. Compensation Policy
• Compensation policy is
derived from organizational
strategy and its policy on
overall human resource
management.
• organization should clearly
specify its compensation
policy, which must include
the basis for determining
base compensation,
incentives and benefits, and
various types of perquisites
to various levels of
employees.
1. Organizations Strategy
2. Compensation Policy
3. Job analysis and Evaluation
4. Analysis of Contingent Factors
6. Evaluation and Review
3. Job Analysis and
Evaluation
• Job analysis also provides
base for job evaluation
which determines the
relative worth of various
jobs in the organization.
• The relative worth of
various jobs determines the
compensation package
attached with each job.
4. Analysis of Contingent
Factors
• Compensation plan is
always formulated in the
light of various factors, both
external and internal,
• External Factor: conditions
of human resource market,
cost of living, and level of
economic development,
social factors, pressure of
trade unions, and various
labour laws
• Internal Factor:
organization’s ability to pay
and employees’ related
factors such as work
performance, seniority,
skills, etc
 5.Design and Implementation of
Compensation Plan
• the organization may be able to design
its compensation plan incorporating
base compensation with provision of
wage/salary increase over the period of
time, various incentive plans, benefits
and perquisites.
• Sometimes, these are determined by
external party, for example, pay
commissions for Government employees
as well as for public sector enterprises
• Implementation of compensation plan
requires its communication to
employees and putting this into practice.
6. Evaluation and Review
• A compensation plan is not a rigid and
fixed one but is dynamic since it is
affected by a variety of factors which are
dynamic.
• Therefore, compensation management
should have a provision for evaluating
and reviewing the compensation plan.
Compensation Management : Basic Factors
(a) The Organizations Ability to Pay
• Payment of wages depends upon the affordability of an
organization. Companies that have good sales and, therefore, high
profits tend to pay higher those which running at a loss or earning
low profits because of higher cost of production or low sales.
• All employers, irrespective of their profits or losses, must pay not
less than their competitors and need to pay more if they wish to
attract and retain workers.

b) Supply and Demand of Labour (d) The Cost of Living

• The labour market conditions or supply and demand forces operate at the national,
regional and local levels determine organizational wage structure and level.
• If the demand for certain skills is high and supply is low, the result is a rise in the price
to be paid to these skills.
• The other alternative is to pay higher wages if the labour supply is scarce; and lower
wages when it is excessive.
• The cost of living pay criterion is usually regarded as an automatic minimum equity pay criterion.
• This criterion calls for pay adjustments based on increase or decrease in an acceptable cost of
living index.
(e) Labour Union
• Labour union also helps in paying better wages to the workers.
• Higher wages have to be paid by the firm to its workers under the pressure of the trade unions.

(c) Prevailing Market Rate (f) The Living Wage

• This is known as the ‘comparable wage’ or ‘going wage rate’, and is the widely used
criterion.
• An organization’s compensation policy generally tends to conform to the wage rate
payable by tine industry and the community.
• It implies that wages paid should be adequate to enable an employee to maintain himself and
his family at a reasonable level of existence.
• However, employers do not generally favour using the concept of a living wage as a guide to
wage determination because they prefer to base the wages of an employee on his contribution
rather than on his need.
(g) Government Challenges or Problems of Compensation
• Government has also fixed the rules for protecting the interest of Management
the employees.
1. Strategic Objectives.
• The organizations are liable to pay as per the Government 2. Prevailing Wage Rates.
instructions.
3. Union Power.
• Wages cannot be fixed below the level prescribed by the 4. Government Constraints.
Government.
5. Comparable Worth and Equal Pay.

(h) Productivity of Workers 6. Compensation Strategies and Adjustments.

7. International Compensation Challenges.
• To get the best results from the employees and to increase the 8. Productivity and costs.
productivity, compensation has to be linked with productivity

Career Planning Topics Covered

NTA UGC NET/JRF 2021 1. Introduction
Industrial Relations and Labour welfare/HRM
2. Key terms related to Career Planning
CODE 55
Paper 2 3. Objectives of Career Planning
4. Career Anchors
Presented by
5. Process of Career Planning
Lakshmi Kushwaha
Follow me : Unacademy.com/@lakshmikushwaha12-6214 6. Stages of Career Planning
Rate, Review, Feedback, Share
Telegram Group : NET/JRF HRM Learner
 Key terms related to career Planning
Introduction Career Goal The future positions one strives to reach in his career

Career
Career Path The sequential and progressive path or line through which, one moves
• Career is defined as a person’s course or progress through life. toward his/ her career goal
• A career may be defined as ‘ a sequence of jobs that constitute
what a person does for a living. Career These are the basic drives acquired by an individual during the
socialisation process which urge him to take up a career of a certain
Flippo Anchors type.

• A career is a sequence of separate but related work activities that Career Making progress in one’s career through a series of right moves in the
provide continuity, order, and meaning in a person’s life”. This is the Progression form of promotions.
objective view of a person’s career.

Mentoring A process wherein a senior employee serves in an informal way as a

teacher, guide, friend, philosopher and confidante to the new employee in
the organisation.
Definition
Career This is the process by which an employee selects career goals and the path
Schermerborn, Hunt, and Osborn
Planning to these goals.
• Career planning is a process of systematically matching career
Career The personal improvements one undertakes to achieve a personal career goals and individual capabilities with opportunities for their
Development plan.
fulfillment’.
Career This is the process of designing and implementing goals, plans and strat- General definition
Management egies to enable the organisation to satisfy employee needs while allowing
individuals to achieve their career goals.
• Career Planning is the process of setting up career objectives
Career It is the responsibility of an employee to keep himself updated about the and determining appropriate developmental programs to
Awareness latest development happening in the specific area of his work. This is
possible through taking membership from the related bodies, subscribing to further ones progress in an organization.
relevant magazines, attending seminars and conferences.
 Objectives of Career Planning
1. To identify positive characteristics of the employees.
2. To develop awareness about each employee’s uniqueness.
3. To respect feelings of other employees.
4. To attract talented employees to the organization.
5. To train employees towards team-building skills.
6. To create healthy ways of dealing with conflicts, emotions, and stress.
Features of Career Planning
1. It is an ongoing process.
2. It helps individuals develop skills required to fulfill different career roles.
3. It strengthens work-related activities in the organization.
4. It defines life, career, abilities, and interests of the employees.
5. It can also give professional directions, as they relate to career goals.

Career Anchors 5 Career Anchors

1. Longitudinal researches conducted by the psychologists have indicated that
1. Managerial Competence 2. Technical-functional competence
during the socialisation process, certain attitudinal syndromes are formed
early in life. • People having such anchors are • People having a strong technical –
2. These syndromes are composed of a combination of needs, values, and characterised by an overriding functional career anchor seem to
talents and serve to anchor the person to one or a few related type of interest in managerial positions make career choices based on
careers throughout his life. that offer opportunities for higher their technical or functional
3. Knowledge of these anchors helps in planning career development.
responsibility, decision making and knowledge of the work, such as
control and influence. engineering and accounting.
4. 5 Career Anchors : Managerial Competence, technical- functional • They like to become
Competence, Security, Creativity, Autonomy - Independence experts/specialists rather than
become general managers.

3. Security 4. Creativity
• People driven by such • Such people are
career anchors like to characterized by an
ensure security of career overriding interest to do
through compliance with something new that
organisation’s could be identified as
prescriptions. theirs.
• Such people start a new
venture, work in research
lab and pilot some
business venture.
• They choose a career less
for making money than
identifying them by
creating something new.
Process of Career Planning
1.Analysing
2. Analyzing 3. Matching
Employee’s
Career Needs and
Needs and
Aspirations
Opportunity Opportunities
Methods of identifying Career Anchors
5. Autonomy-
Independence
• People having such 1.Communication of 3.Career planning Assessment
2. Career Counselling
career anchors seek a Career Information workshop programmes
career that provides
• Provides career • Arrange counselling • Workshops are held • A number of tests
freedom of action and related information for employees to to disseminate are conducted to
independence. and disseminates help them assess career planning help employees
• Freelance writers and information about their personal information in know what they
consultants belong to this career interest, aptitude order to enable the should do to build
category. opportunities and and capabilities, employees know their skills and what
career path and interpret their what kind of work personal abilities fit
• Gives information self-assessment would suit them in with their career
about resources • Employees are path
available to provided with
employees such as reading materials
scholarship and other media
assistance, training, aimed at career
etc. planning.
1. Analysing Employee’s Needs
and Aspirations
2. Analysing Career Opportunity
• Organisation must provide • Once career needs and
resource and support to help aspirations are known,
employees identify career path organizations have to provide
and plan accordingly career path for each position.
• Organizations should first • It indicates various positions a
4. Action Plan
6. Review of analyse employee’s anchors i.e., job holder can hold over a
and Periodic
Career Plans.
Review urge to lose a particular career period of time.
and aspirations. • Career path changes overtime in
• This assessment should be tune with employee’s needs and
based on personnel inventory organizational requirements.
 3. Matching Needs and Opportunities 4.. Action Plan
• Refers to highlighting and aligning the gaps between the employees’ needs • Refers to designing the actions
and the opportunities provided by the organization. plans and reviewing periodic
• The alignment of needs and opportunities consists of two steps, namely performance for the career
identifying the potential of employees and aligning employee needs with development of an individual.
organizational opportunities. • The formulation of action plans
helps the employees in
• The potential of employees can be accessed through performance appraisal, determining the direction of their
which reveals the need for further training for some employees career paths, the changes
• After identifying the potential of employees, certain development required in their careers and the
techniques, such as special assignments, planned position rotation, skills needed to face new and
supervisory coaching, job enrichment, and understudy programs, can be emerging organizational
undertaken to upgrade their knowledge and skill challenges.
Stages of Career Planning i. Exploration Stage
• This stage starts after completion of
1.Exploration formal or professional education
from a college or university and
involves the transition period from
2.Establishment academics to work life.
3.Mid Career • this stage covers the mid-twenties
of an individual’s life.
4.Late • The candidate explores relevant
Career opportunities for a job either with
the help of his/her institutions help
or those from a job consultant.
5.Decline Career
5.Review of Career Plans
• it is necessary to review the
whole career plan and its
implementation.
• It is also necessary from an
organizational standpoint to find
out how employees are doing,
what are their goals and
aspirations, and whether the
career paths are in tune with
individual needs and serve the
overall corporate objectives.
ii. Establishment Stage
• This stage begins when one
individual gets his/her first job.
• The establishment stage is more of a
preparation or learning stage,
where an individual accumulates
experiences and learnings from
his/her employer, colleagues,
customers etc.
• Although this stage might be
characterized by committing
mistakes; yet it forms an integral
part of the learning process of the
candidate
 iii. Mid Career iv. Late Career v. Decline Stage

• This is the stage which • Late career can be • In this the individual Components of Individual Career Planning
spans from the early or described as a maturity prepares himself/herself
mid-30s to the 50s of an stage of one’s career, for retirement
individual’s age. where an individual is
• This stage may be characterized for attaining
characterized either by a relatively good position
steady and improved and status in the 2.Career 4.Create an
performance or may exhibit organization where he/she • Learn more about
Exploration • Select one
Action Plan
declining performance. is being employed. your interests, occupation,
• List of occupations • Short term and
• In case the organization or • The individual at this stage values, personality, • identify
long term, career
aptitudes, skill sets, • Research requirements for
the peer or support groups takes up the role of an industries, job goals,
options entering
provide counsel, help or elder statesperson. shadowing, jop • training required,
additional training and temping, 3.Career • identify potential
1.Self Assessment internship, employers, create
development-the Identification
volunteering resume, job
performance may also
interviews
increase leading the
candidate back on his/her
career track.

Advantages of Career Planning:-

For Organizations
For Individuals

• 1. helps the individual to have the knowledge of
various career opportunities, his priorities etc.
• 2. This knowledge helps him select the career that
is suitable to his life styles, preferences, family
environment, scope for self-development etc..
• 4. Internal promotions, upgradation and transfers
motivate the employees, boost up their morale
and also result in increased job satisfaction.
• 5. Increased job satisfaction enhances employee
commitment and creates a sense of
belongingness and loyalty to the organization.
• 6. Employee will await his turn of promotion
rather than changing to another organization.
This will lower employee turnover.
• 7. It improves employee’s performance on the job
by taping their potential abilities and further
employee turnover.
• 8. It satisfies employee esteem needs.
Career Development
• i. Efficient career planning and development
ensures the availability of human resources with
required skill, knowledge and talent.
• ii. The efficient policies and practices improve the 1. Career development refers to a set of programmes designed to match an individual’s
organization’s ability to attract and retain highly
skilled and talent employees.
needs, abilities, and career goals with current and future opportunities in the
• iii. The proper career planning ensures that the
organization.
women and people belong to backward 2. Since career development focuses on future opportunities, it has essentially a long-
communities get opportunities for growth and
development.
term orientation.
• iv. The career plan continuously tries to satisfy the 3. Career Development is essential for the implementation of career planning. It is the
employee expectations and as such minimizes process through which the action plans are implemented. Developmental activities
employee frustration.
include all of the off-the-job and on-the-job training techniques.
4. A formal approach taken by an organization to help its people acquire the skills and
experiences needed to perform current and future jobs is termed as career
development.
 Schuler Career Development – Role of HRM: As Elaborated by Snell
• "It is an activity to identify the individual needs, abilities and goals and the and Bohlander(2007)
organization’s job demands and job rewards and then through well designed A. The Employee’s Role B. The Organization’s/Manager’s Role
programmes of career development matching abilities with demands and rewards". • Managers' Role
• Employer’s Role • 1. Managers should encourage employees to
Mansfield • 1. Employees must identify their knowledge,
skills, abilities, interests and values.
take responsibility of their own career.
• 2. offer assistance in the form of feedback on
• "Career development is a process in which personnel experience, concept and • 2. They must seek out information about career individual, performance.
publicly observable aspect of career interact to precipitate each successive stage of options to set career goals and develop career • 3. make available information about the
plans. organization, the job and career opportunities
occupational statuses". in the organization.
• 4. The organization is responsible for supplying
Middlemist, Hill and Greer information about its mission, policies and
plans for providing support for employee self-
• , "Career development is a process of planning the series of possible jobs one may assessment, training and development.
hold in an organization over time and development strategies designed to provide • 5. One of the important supports comes in the
necessary job skills as the opportunities arise". form of mentoring. Receiving advice and
counsel

Methods of communication information

related to career to employees For compiling and communicating career-related information
to employees, organisations basically use below methods
5.Employee
1. Job Posting
2. Skills Inventory
3. Career Ladders 4.Career Resource 1.Job Posting System 2.Skills Inventory
Assessment
System and Career Paths Centre
Programmes
• Job posting systems are used by • Skills inventories (containing employees’
companies to inform employees about work histories, qualifications,
vacancies in the organisation through accomplishments, career objectives, geo-
1. Assessment 2. Psychological notice boards, newsletters and other graphical preferences, possible
Centres Tests company publications. retirement dates, etc.) are created to help
organisations learn the characteristics of
their workforces so that they can use the
skills of their employees, whenever
3. Promotability 4. Succession required.
Forecasts Planning
• Skills inventories also reveal shortage of
critical skills among employees, which is
helpful in tracing training needs.
 3.Career Ladders and Career Paths
• Career paths and ladders throw light
on career progression and future job
• The career centre is a sort of library in
opportunities in the organisation.
• They indicate a career plan complete
with the goal, intermediate steps and
time-tables for realising the goal.
• Usually career paths for fast-track
employees are laid down in most
organisations outlining a series of
career moves that these employees
need to initiate in order to reach
higher level positions.
3. Promotability Forecasts
• This is a process of
identifying employees with
high career potential and
giving them necessary
training and thereby groom
them for higher positions.
4.Career Resource Centre
the organisation established to
distribute career development
materials such as reference books,
career manuals, brochures,
newsletters and learning guides and
self-study tapes.
4. Succession Planning
• This is a report card showing
which individuals are ready
to move into higher
positions in the company.
• The HR department keeps
records of all potential
candidates who could move
into senior positions,
whenever required.
5. Employee Assessment Programmes
1. Assessment Centres 2. Psychological Tests
• A number of performance simulation tests and • Diagnostic tests are used to help candidates
exercises (tests, interviews, in-baskets, determine their vocational interests,
business games) are used to rate a candidate’s personality types, work attitudes and other
potential in assessment centre method. personal characteristics that may uncover
• The performance on these exercises is their career needs and preferences
evaluated by a panel of raters and the
candidates are given feedback on their
strengths and weaknesses.
• This feedback helps participants to assess
where they stand and what is to be done to
scale the corporate ladder in future.
Succession Planning
1. Succession planning is a strategy for passing on leadership roles—often
the ownership of a company—to an employee or group of employees.
2. Also known as "replacement planning," it ensures that businesses
continue to run smoothly after a company's most important people
move on to new opportunities, retire, or pass away.
3. Succession planning can also provide a liquidity event enabling the
transfer of ownership in a going concern to rising employees.
4. Succession planning is a focused process for keeping talent in the pipeline.
It is generally a 12- to 36-month process of preparation, not pre-selection.
 1.Identifying Key Business Areas and Positions 1.Identifying Key Business Areas and
Positions
• First and foremost, the key business
2.Ascertaining Competencies for Key areas and areas are identified, i.e. the areas
positions which are significant with respect to
the operational activities and
3.Find out the interested and potential strategic objectives.
candidates and assess them as per the • After that, those positions are
competencies identified which if vacant can cause
difficulty in achieving business
objectives.
4.Develop and Implement Succession Strategies
5.Evaluate Effectiveness
2.Ascertaining Competencies for Key
areas and positions
• Next, you need to determine the
required competencies for key
business areas and position, in order
to create the selection criteria,
establish performance standards and
fill the difference between what the
viable successors know and what
they need to know, through
the training and development process
• .It determines the knowledge, skills,
ability and experience required to
achieve business goals.

3.Find out the interested and

potential candidates and assess
them as per the competencies
• After competency is analysed,
the next step is to identify
• Strategies for learning, training,
among various employees
working in the organization,
who are interested as well as
they have the capability to fill
key business areas and
positions.
• The Human Resource Manager
discusses future career plans
and interests with the
candidates and identifies the
potential successors who are
ready to replace the old ones
and can be trained and
developed for future
contingencies
4.Develop and Implement
5.Evaluate Effectiveness
Succession Strategies
development, knowledge
• The last step to the succession
planning process is to evaluate Topics Covered
transfer, experience sharing is the succession planning and
developed and implemented for management, to ensure that all 1. TQM 7. Kaizen
potential successors the key business areas and
positions are covered under the 2. Key Elements of TQM 8. 6 Sigma
succession planning.
• Further, it also ensures that in 3. PDCA Cycle of TQM 9. Just in Time
case of any sudden vacancies in
future, key positions can be 4. 6 C’S of TQM 10. ISO
filled as soon as possible and
the successors perform 5. Principles of TQM
effectively when they hold the
position. 6. Demings 14 Principle
of TQM
39.

Total Quality Management - Introduction

1. W. Edwards Deming, Armand V. Feigenbaum and Joseph M. Juran jointly
developed the concept of TQM
2. Total quality management (TQM) is the continual process of detecting and
reducing or eliminating errors in manufacturing, streamlining supply chain
management, improving the customer experience, and ensuring that
employees are up to speed with training.
3. Total Quality Management is defined as a customer-oriented process and
aims for continuous improvement of business operations.
4. It ensures that all allied works (particularly work of employees) are toward
the common goals of improving product quality or service quality, as well as
enhancing the production process or process of rendering of services.

Key Elements of TQM PDCA(Plan, Do, Check, Act) Cycle of TQM

1.Commitment from the management 2.Employee Empowerment
Plan (drive, direct) Training
Do (deploy, support, and participate) Excellence team
Check (review) Measurement and recognition
Act (recognize, communicate, revise) Suggestion scheme Doing Phase Acting Phase
• Employee come up • Comparision
with problems, analysis of before
challenges faced • Develop solutions and after data • Document result
Key Elements of TQM • Do research and • Strategies • Measure results • Prepare
find solutions formation themselves to
address problems
4.Customer Focus 3.Continuous Improvement
Planning Phase Checking Phase
Partnership with Suppliers Systematic measurement
Service relationship with internal customers Excellence teams
Customer-driven standards Cross-functional process management
Never compromise quality Attain, maintain, improve standards
 6 C’s of TQM Principles of TQM
1.Customer-focused
Commitment
2.Total employee involvement

Control Culture 3.Process-centered

4.Integrated system
TQM Principles of TQM
5. Strategic and systematic
Continuous approach
Customer
Improvemen
Focus 6. Continual improvement
t

Cooperation 7. Fact-based decision making

8. Communications

2.Total employee
1.Customer-focused
involvement
• customer ultimately • All employees • A fundamental part
determines the level participate in working
of quality toward common
goals.
• No matter what an • The steps required to
organization does to • Total employee
foster commitment can
quality employees, only be obtained
integrating quality after fear has been
into the design driven from the
process, or upgrading workplace
computers or • Self-managed
software—the work teams are one
customer determines
form of
whether the efforts empowerment.
were worthwhile. • High-performance
work systems
5. Strategic and
6.Continual 7.Fact-based
3.Process-centered Integrated system systematic 8.Communications
improvement decision making
approach
• all processes • includes the • Continual • TQM requires • times of
of TQM is a focus on aggregate into the formulation of a improvement that an organizational
process thinking business processes
required for defining
strategic plan drives an organization change, effective
and implementing that integrates organization to continually communications
carry out the process
are defined, and strategy. Everyone quality as a core be both collect and plays a large part
performance must understand the component. analytical and analyze data in in maintaining
measures are vision, mission, and creative in order to improve morale and in
continuously guiding principles as finding ways to decision making motivating
monitored in order to well as the quality become more accuracy, achieve employees at all
detect unexpected policies, objectives,
and critical processes competitive and consensus, and levels.
variation.
of the organization. more effective at allow prediction • Communications
Business meeting stakehol based on past involve
performance must be der expectations. history. strategies,
monitored and method, and
communicated
continuously.
timeliness.
 Deming’s 14 Points of TQM Kaizen
1. “Kaizen” refers to a Japanese word which means “improvement” or
“change for the better”.
2. Kaizen is defined as a continuous effort by each and every employee
(from the CEO to field staff) to ensure improvement of all processes and
systems of a particular organization
3. Kaizen means “continuous improvement of processes and functions of
an organization through change”
4. Kaizen works on the following basic principle.
“Change is for good”.

5 S of Kaizen SHITSUKE
(Self SEIRI(Sort)
“Five S” of Kaizen is a systematic approach which leads to foolproof systems, standard Discipline)
policies, rules and regulations to give rise to a healthy work culture at the organization
1.SEIRI 2.SEITION 3.SEISO 4.SEIKETSU 5.SHITSUKE
• SEIRI stands for • Seition means • The word • SEIKETSU refers • Self discipline is
Sort Out to Organize. “SEISO” means to essential.
• Label the items • Every item shine the Standardization. • Follow work
as “Necessary”, should have its workplace. • have certain procedures SEIKETSU
”Critical”, ”Most own space and • De-clutter standard rules SEITION
Important”, must be kept at your and set policies (Standardizati
(Organize)
“Not needed its place only. workstation. to ensure on)
now”, “Useless • Necessary superior quality.
and so on. documents
• Throw what all should be kept
is useless. Keep in proper
aside what all is folders and SEISO(Shine)
not needed at files.
the moment
 Methodologies of 6 Sigma
6 Sigma(Bill Smith working in Motorola, 1986) DMAIC

• for improving existing

DMADV

• to create new processes and

5 Whys

• This is a method that uses

1. Six Sigma drew inspiration from the quality improvement methodologies of business processes. new products or services. questions (typically five) to get
preceding decades, including quality control, TQM, and Zero Defects. • Define the problem and the • Define the project goals to the root cause of a
project goals • Measure critical components problem.
2. It focuses on improving the quality of process outputs by identifying and • Measure in detail the various of the process and the product • The method is simple: simply
removing the causes of defects while minimizing the variability in aspects of the current process capabilities state the final problem and
manufacturing and business processes • Analyze data to, among other • Analyze the data and develop then ask the question “why,”
things, find the root defects in various designs for the breaking down the issue to its
3. Like TQM, the Six Sigma philosophy asserts that achieving sustained quality a process process, eventually picking the root cause.
improvement requires commitment from the entire organization, particularly • Improve the process best one
top-level management. • Control how the process is • Design and test details of the
done in the future process
4. This increase in performance and decrease in process variation helps lead to • Verify the design by running
defect reduction and improvement in profits, employee morale, and quality simulations and a pilot
of products or services. program, and then handing
over the process to the client
 Just in Time(JIT)
1. The Just-in-Time (JIT) method is a production strategy for improving
business return on investment by reducing in-process inventory and
associated carrying costs.
2. JIT focuses on continuous improvement to maximize an organization’s
return on investment, quality, and efficiency.
3. The JIT inventory system focuses on having “the right material, at the
right time, at the right place, and in the exact amount” and defines
inventory as a cost factor.
4. JIT programs often include a focus on Total Quality Control
ISO
1. It is the “International organization for standardization” a body which gives the
certification of quality to the products and also to various type of companies. It is based in
Geneva, Switzerland.
2. Every establishment in the world whether it is a company, an industry or other firms should
have to take the certification of quality assurance from the ISO.
3. This ISO certification also works as an assurance to the customer that the product is
genuine and safe to consume.
4. ISO 9000 is a series, or family, of quality management standards, while ISO 9001 is a
standard within the family.
5. The ISO 9000 family of standards also contains an individual standard named ISO 9000.
This standard lays out the fundamentals and vocabulary for quality management systems
(QMS)

Detailed course on HRM

Value Stream Mapping Training & Development
1. Value stream mapping (VSM) is defined as a lean tool that employs NTA UGC NET/JRF 2021
a flowchart documenting every step in the process. Industrial Relations and Labour welfare/HRM
2. Many lean practitioners see VSM as a fundamental tool to identify waste, CODE 55
reduce process cycle times, and implement process improvement. Paper 2
3. VSM is a workplace efficiency tool designed to combine material processing
steps with information flow, along with other important related data. Presented by
4. VSM is an essential lean tool for an organization wanting to plan, implement, Lakshmi Kushwaha
and improve while on its lean journey. Follow me : Unacademy.com/@lakshmikushwaha12-6214
Rate, Review, Feedback, Share
5. VSM helps users create a solid implementation plan that will maximize their
available resources and help ensure that materials and time are used Telegram Group: NET/JRF HRM Learner
efficiently.
LAKSHMI KUSHWAHA TELEGRAM : NET/JRF HRM LEARNER
 Training & Development
Definition : Training
Employee training and development implies a program in which specific knowledge, skills
and abilities are imparted to the employees, with the aim of raising their performance
level, in their existing roles, as well as providing them learning opportunities, to further Dale S. Beach
their growth.
• ‘The organized procedure by which people learn
Training Development knowledge and/or skill for a definite purpose’.
• A process of upgrading an individual’s • It is all about preparing the employee for
knowledge, skills and competencies the current as well as future jobs, by Edwin Flippo
• When an employee joins the organization, providing them with learning
he/she is given job-related training to opportunities to increase their capacities, • Training is the act of increasing the skills of an
ensure satisfactory performance of the to undertake more challenging and
tasks and duties assigned. complex tasks. employee for doing a particular job’.
• It is a short-term learning process • has a long-term view

Objectives of Training Need of Training

(i) To provide job related knowledge to the workers. 1. Higher Productivity
(ii) To impart skills among the workers systematically so that they may learn quickly. 2. Quality Improvement
(iii) To bring about change in the attitudes of the workers towards fellow workers, 3. Reduction of Learning Time
supervisor and the organization.
4. Industrial Safety
(iv) To improve the productivity of the workers and the organization
5. Reduction of Turnover and Absenteeism
(v) To reduce the number of accidents by providing safety training to the workers,
(vi) To make the workers handle materials, machines and equipment efficiently and
6. Technology Update
thus to check wastage of time and resources. 7. Effective Management
(vii) To prepare workers for promotion to higher jobs by imparting them advanced
skills.
 Benefits of Training Process of Training
To Employer/Organisation To Employee

• better utilization of an organization’s • Better Career Opportunities

resources, i.e. men, machine, material • Motivation
and money. • handle any situation or problem and 4.Implementat
• less wastage, with respect to resources deal with the challenges 1.Training 3.Designing 5.Evaluation of
2. Setting ion of the
and time Needs Training the Training
• Safety, reduces the number of Objectives Training
assessment Programme Programme
• improves the performance accidents Programme
• employees learn new and improved • stay up-to-date with the technological
methods of performing an activity, changes.
which helps the organization to survive, • job satisfaction and boosts employees
compete and grow in the market. morale.
• reduction in employee turnover, idle
time and absenteeism.
• develops a positive attitude

1. Training Need Assessment 2.Establish Specific Objectives 3.Designing Training Programme

Determine Training Methods of Determining
Training Need Occur? Kind of training Needs
Needs and Priorities Training Needs • The objectives could be based on • design the training programme in
• gap between the • Individual vis-a-vis • What are the • 1.Observation and the gaps seen in the training line with the set objectives
knowledge, skills group needs organization’s goals? analysis of job programmes conducted earlier and • Who are the trainees?
and attitudes that • Short-term vis-a-vis • 2. What tasks must performance the skill sets developed by the
the job demands long term needs be completed to • 2. Management and • Who are the trainers?
and the knowledge, employees.
• Institutional or achieve these goals? staff conferences • What methods are to be used for
skills and attitudes formal vis-a-vis • 3. What behaviour and • basic objective of training is to the training?
already possessed informal needs are necessary for recommendations bring proper match between man
by a Trainee.
• Needs which can be each job incumbent • 3. Analysis of job • What will be the level of training
• performance of and the job.
met by internal to complete his requirements • the comprehensive action plan is
employees in their resources vis-a-vis assigned tasks? • 4. Consideration of
present position designed that includes the training
those to be met by • 4. What deficiencies, current and
does not match with external resources. if any, do projected changes content, material, learning
the required incumbents have in theories, instructional design, and
• 5. Surveys, reports
standards. the skills, knowledge and inventories the other training requisites.
• job change due to and attitudes? • 6. Interviews
changing
circumstances
 4.Implementation of the Training
Programme
• put it into the action.
• foremost decision that needs to be
made is where the training will be
conducted either in-house or
outside the organization.
• time for the training
• trainer who will be conducting the
training session
• trainees are monitored continuously
throughout the training programme,
to retain the employee’s interest
5.Evaluation of the Training
Programme Kirkpatrick Model: Four Levels of Training
• employees are asked to give their Evaluation
feedback on the training session and The four levels of Kirkpatrick's evaluation model essentially measure:
whether they felt useful or not
1. Reaction of student - what they thought and felt about the training
• organization can determine the
weak spots if any, and can rectify it 2. Learning - the resulting increase in knowledge or capability
in the next session 3. Behaviour - extent of behaviour and capability improvement and
implementation/application
4. Results - the effects on the business or environment resulting from the
trainee's performance

Evaluation type (what is Evaluation description and characteristicsExamples of evaluation
measured)
Reaction Reaction evaluation is how the delegates
tools and methods
'Happy sheets', feedback
felt about the training or learning forms.
experience. Verbal reaction, post-
training surveys or
questionnaires.
Learning Learning evaluation is the measurement of Typically assessments or
the increase in knowledge - before and tests before and after the
after. training.
Interview or observation
can also be used.
Behaviour Behaviour evaluation is the extent Observation and interview
of applied learning back on the job - over time are required to
implementation. assess change, relevance
of change, and
sustainability of change.
Results Results evaluation is the effect on the Measures are already in
business or environment by the trainee. place via normal
management systems and
reporting - the challenge is
to relate to the trainee.
Relevance and
practicability
Quick and very easy to
obtain.
Not expensive to gather
or to analyse.
Relatively simple to set
up; clear-cut for
quantifiable skills.
Less easy for complex
learning.
Measurement of
behaviour change
typically requires
cooperation and skill of
line-managers.
Individually not difficult;
unlike whole
organisation.
Process must attribute
clear accountabilities.
Types of training
Off Job Training
On Job Training 1. Vestibule Training
2. In Basket Training
1.Coaching
2. Understudy 3. Conference & Seminars
3. Mentoring 4. Case Study
4. Job Rotation 5.Programmed Instructions
5. Special Projects 6.Role Playing
7.Management Games
6. Committee Assignments
8. Sensitivity Training
7. Apprenticeships
9. Simulation
 ON JOB Training- Learning by Doing Job Rotation
Special Projects and Task
Forces
Committees Assignments

• an employee is often • the trainee is assigned a • the trainee managers are

Coaching Understudy
• the superior or an • the superior gives
experienced staff gives training to the
instructions to the subordinate as an
workers to perform a understudy or an
job assistant who is likely to
perform a superior’s job
• one-to-one training
designed for the in case of the vacancy
workers arising out of superior’s
retirement, transfer,
promotion or death.
Mentoring shifted to the other project closely related to appointed as members of
related jobs, with the his job a committee.
• training is given to the intention to make him
managerial level people, • The trainees learn by • The committee
well versed with other job performing the special deliberates upon and
wherein the senior or backgrounds. assignment not only work discusses problems of the
the manager gives
• helps him to escape the procedures but enterprise
instructions to the boredom caused by organisational
immediate subordinate • By participating in
performing the same kind relationships too meetings and discussions,
to carry out the day to of work again and again • example, management every member learns
day functioning.
• helps in developing a trainees in accounts may analytical thinking and
• one-to-one training rapport with other people be asked to develop act decision-making skills.
method, manager is in the organization. control system
considered as a mentor.

Apprenticeship Job Instructional Training Off Job Training

• Training is generally given to the
people in crafts, trade and
technical fields that require a
long-term learning before they
actually gain the proficiency in
their respective disciplines.
• training is a blend of classroom
and on-the-job training and is
conducted under the close
supervision.
• a trainer designs a step by step
training program, wherein the
worker is given the instructions
to perform the job as required.
• Firstly, the overview of the job
along with the desired results is
explained to the trainee,
• and then the skills required for
the job is demonstrated by the
trainer.
• Tell, Show, Do
Vestibule Training
• training is specifically given to the
technical staff, office staff and the
employees who learn the operations of
tools and equipment assembled at a
place away from the actual work floor.
• training is conducted to give the real feel
to the trainees, that they would be
experiencing at the actual plant.
In-Basket Exercise
• The in-basket contains a number of
correspondence of which poses a problem.
• The problems are of different kinds and
resemble real life problems.
• The trainees study memos, letters, reports
and other documents in the basket.
• They are required to solve each problem
and to record their decisions within a
specified time period
• learn logical thinking, inter-relationships
between problems and decision-making
skills.
 Conferences and Seminars
• In a conference,
participants are required
to pool their ideas,
viewpoints and
suggestions.
• a conference is divided
into small groups. These
groups discuss thoroughly
the problems of common
interest and report their
recommendations to the
conference
• promote an attitude
responsive to change. It is
ideal for analysing
problems.
Case Studies
• The trainees are given the
situation or a problem in
the form of a case study,
and are required to solve it
as per their learning from
the training program.
Programmed Instruction
• It is a technique of
instruction without the
intervention of a human
instructor
• Manuals, electronic
teaching machines and
computer systems are
used in this method.
• It is a learner centered
method wherein the
subject-matter is
presented to the trainees
in small steps and they are
asked to make frequent
responses.
Role Playing
• It is also called as socio-drama or
psycho-drama,
• two or more trainees spontaneously
act out or play role in an artificially
created situation.
• They are informed of the situation
and the roles they are expected to
play
Management Games
• the trainees are divided into groups
and then they are presented with
the simulated marketplace or the
situations, wherein they are
required to apply their learning and
solve the problems accordingly
• an actual business situation is
presented as a model..
• useful in developing the ability of
taking decisions with incomplete
data and amid conditions of
uncertainty

Sensitivity (T-Group) Training-Kurt Lewin and Ronald Lippitt

Three Steps essential for a sensitivity training
• Sensitivity training is about making people understand about themselves and
others reasonably, which is done by developing in them social sensitivity and
program
behavioral flexibility
• a small(10-12person) group (T-Group) meets in an unstructured situation.
• There is no plan or schedule and no agenda or other inhibitions. The numbers of
the group are allowed to communicate with each other freely so that each can
gain an insight of his behaviour as others see it.
• The trainees are encouraged to probe their feelings and abilities in building
inter-personal relationships.
• The purpose is to build self-awareness, understanding of group processes and
insight into interpersonal relationships.
• become more open and understanding
 Simulation
• the trainee is required to learn
the operations of machines and
equipment, that are reasonably
designed to look similar to those
installed at the actual work floor.
• one of the most common
method of training wherein the
worker learns to operate tools
and machinery that look alike to
those, they would be using in the
actual work environment.
Promotional Training
• This training is given to the
potential employees, who can
be promoted to the senior
position in the organization.
• is given in advance so that
employee gets accustomed to
the new roles and
responsibilities and do not get
nervous at the time of
promotion.
Bain Storming
• The Refresher Training or Retraining is
• problem is put before a group of
trainees and they are encouraged
to offer ideas or suggestions.
• Criticism of any idea is not
allowed so as to reduce inhibiting
forces.
• maximum possible participation
• based on the assumption that the skills
• The purpose is to maximise
innovation and creativity on the
part of executives.
Remedial Training
• This training is given in order to
overcome the shortcomings in
the behavior and performance
of old employees.
• training is given to make them
understand the importance of
change and its necessity in the
operations of business.
• This training is generally given
by the psychological expert
Refresher Training
a training programme designed for the
old or existing employees of an
organization, with a purpose to
acquaint them with the new skills,
methods, and processes required to
improve their performance on the
jobs.
with the existing employees become
obsolete or outdated because of the
advancement in the technology and
due to the human tendency of
forgetting things
New Trends in HRM
Outbound Training
• The Outbound Training is a technique
used to enhance the efficiency of
employees through Experiential
Learning
• taking the group of employees away
from the actual work environment into
the outdoors and are assigned some
challenging task or activity that needs
to be completed by them within a
given time frame.
• outbound training comprises of a
series of exercises and games such as
treasure hunt, trekking, camping, raft
racing, etc.
Changing environment of HRM
and contemporary challenges,
Emerging HRM Concepts.
By-
Lakshmi Kushwaha
 3 Trends in High-Performance Work Systems:
Emerging Trends in Human Resources • 1. Reliance on knowledge workers

Management (HRM)
• 2. Empowerment of employees to make decisions
• 3. Teamwork

Knowledge Workers:
Human Capital • Employees whose contributions to the organization have specialized knowledge of:
-customers
• An organization's employees, described in terms of -processes
their Training, Relationships, Intelligence, Insight Judgement and Experience -profession

• HRM influences the Type & Behaviour of Human Capital which leads to organizational
performance Employee Empowerment:
High performance work system
• giving employees RESPONSIBILITY and AUTHORITY to make decisions regarding all aspects of product development
or customer service
• An organization in which technology, organizational structure, people and processes all Employee Engagement:
work together to give an organization an advantage in the competitive environment.
• full involvement in one's work and commitment to one's job and company.
This is associated with:
HRM must ensure that the organization has the right kinds of people to meet the new -higher productivity
challenges -better customer service
-lower employee turnover

Strategic Business Issues Affecting HRM:

• Total Quality Management Emerging Trends in Human Resources Management (HRM)
Political Economic Social Technological
-Mergers and Acquisitions
• Increased demands for • Increased government • International an internal • Pace of technological
-Reengineering transparency in involvement in migrations innovation is increasing
-International Expansion government and economic growth • Increase • Genomics
organizations • Increasing gap between interconnectivity of
-Downsizing • Increasing dispersal of rich and poor individuals people, organizations
• “Digitization” of
lifestyles and work life
-Outsourcing : The practice of having another company provide services national power • Rapidly increasing and societies • Breakthrough or
• Narrowing of gaps in national debt to GDP • Changing family transformative
• Offshoring : Setting up business enterprise in another country national power between ratios structure technologies
developed and • Growth and increasing • Increasing power of • Social, economic and
developing nations instability of sovereign women
Electronic Human Resource Management (e-HRM): • Increase in the power of wealth funds • Aging population
cultural connectivity

non-state actors • Increase in state • Population growth

• processing and transmission of digitized HR information especially using (businesses, capitalism • Increasing social
organizations such as
computer networking the World Bank)
freedom
• Accelerated pace of life
-has potential to change all traditional HRM functions • Urbanization
TRENDS IN HUMAN RESOURCES MANAGEMENT: Impact of Global Trends:
1. Globalization and its implications Organizations have become more global in markets and operations,
2. Work-force Diversity Organizations will experience higher levels of risk and uncertainty,
3. Changing skill requirements The disruptive nature of globalization will increase the need for organizations to be more
4. Corporate downsizing. flexible and agile,
5. Continuous improvement programs There will be increased political and social pressures for ecological and societal responsibility,
6 Re-engineering work processes for improved productivity Organizations will be facing and challenged by economic and demographic imbalances.
7 Contingent workforce(individuals who are typically hired for shorter periods of time)
8.Mass Customization
9 Decentralized work sites
10 Employee involvement

Environmental/Organizational Challenges Human Resources Management Activities

Aging workforce Recruiting talent to fit strategy • Controlling benefits cost •

Impact of Global Trends:

Multiple generations in the workforce Managing differing expectations and needs • Retooling skill-
Changing attitude toward “work” sets • Succession planning • Phased retirement

The use of technology will increase at a rapid pace, Globalization
• Blurring of organizational lines
Work will be come more complex and interdependent,
Work and thus people will be more mobile and global in orientation leading to increased
workforce migration, Developing and maintaining organization and employee
There is likely to be a growing mismatch between skills needed and talent available, partnership
• Balancing family-work life
There will be an increased need for demographic and cultural sensitivity, • Succeeding in 24/7 economy
More work will be done by diverse work teams often at a distance from one another,
Technology
Declining loyalty between organizations and employees,
The traditional definition of family is undergoing transformation.
Networked organizational arrangements (joint ventures,
strategic alliances) • Managed growth • Organizational
positioning and repositioning
Helping employees embrace diversity
• Crafting and managing an integrative, high performance,
and customer focused culture
• Developing open and accurate communication networks
• Developing and refining flexible work arrangements
• Integration of temporary or contract employees
• Ensuring a supportive (incivility, non-harassment) workplace
• Designing effective work-employee capabilities fit
Training and retraining
• Creating and maintaining collaboration competencies
• Leveraging technology
Strategic partner in the business development processes
• Facilitating and leveraging integration
• Partner in creating “value-added” work systems and
processes
 Strategically Aligning Human Resources Management with Strategic Partner • HR Scorecards ,Talent Management
(Aligning HRM with Business Consultancy ,Business
Changing Environmental and Organizational Contexts Strategy) Effectiveness ,Corporate University

Trends Organizational HRM

Challenges Transformations Outsourcing, HR
Restructuring Expertise Consultancy, Employee
Organizational Reponses Self-Service
• Globalization • Increasing value • Strategic partner to These Challenges
• Emerging businesses • Changing workforce values • Business competency
• New technologies • Improving organizational • Align with strategy
capabilities Transferring HRM
• Intellectual capital • Accountability Responsibilities To line
• Leadership development
• Continuous change • Attracting/retaining talent • Talent management Managers
• Competition • Improving efficiency • Flexibility
Operational Devolution
• Organizational transformations Performance
• Multi-cultural, multigenerational management, Career
diversity development,
Promotions
Compensation

Implications for HR Managers Implications for HR Managers

Recognizing the importance of HR Managers in becoming a •Developing expertise in improving organizational
strategic partner by aligning HR with business strategy performance through social-technical systems
– HR Managers must “know the business they are in” design/redesign:
◦ Can you describe in specific terms what are the key factors for ◦– Are you able to use data and contemporary methods
ensuring success in achieving the success your policy makers and processes for redesigning the way work gets done?
expect?
◦– What specific examples can you point to that
– HR Managers must have business skills and knowledge demonstrates this experience and expertise?
◦ Do you have the skills to develop budgets, create effective
measurement systems, develop strategies for improving
performance outcomes?
 Generations in Today's Workforce
Implications for HR Managers: • 1. Silent (born 1945 and before)
•Being attuned to employees and the critical issues facing them in balancing work/life 2. Baby Boom (born 1946-1964)
challenges
3. Gen-X (1965-1976)
Acquiring the competencies for creating organizational cultures that empower and align with
strategy. 4. Gen-Y/Millennials (1977-1995)
•Managing and leading transformations.
◦ Transforming human resources management requires: New tech influencing HRM
◦ The confidence to stand alone,
◦ The courage to make tough decisions, and • 1. Internet Portal
.The compassion to listen to the needs of others
2. Shared Service Centers
3. Cloud computing: such as app service providers
4. Business Intelligence
5. Data Mining

the traditionalists/Slient baby boomers

Generation X Millenials

• core values: patience, delayed
reward, duty before pleasure,
adherence to rules, honor,
dedication, sacrifice, hard work,
conformity, respect for authority
• personality traits: like consistency
and uniformity, like things on a
grand scale, believe in logic not
magic, tend to be disciplined, are
past oriented and history
absorbed, possesses a
conservative spending style
• core values: optimism, team
orientation, personal gratification,
health and wellness, personal
growth, youth, work is play,
involvement and service
• personality traits: believe in
growth and expansion, like to be
stars of the show, believe in
teamwork, pursue their own
gratification, like to be cool, tend
to soul search, believe they will
always be young, positivity (we
can change things
• core values: diversity, thinking
globally, balance, techno-
literacy, fun, informality, self-
reliance, pragmatism
personality traits: tend to be
self-reliant, seek a sense of
family, like a balanced life, like
informality, posses a casual
approach to authority, skeptical
about life, technologically savvy
• core values: optimism, civic
duty, confidence, achievement,
sociability, morality, street
smarts, diversity
personality traits: tend to be
adaptable and innovative, may
seem impatient and
disengaged, likely will be
efficient, resilient, and tolerant,
tend to be blunt and
expressive, likely will be
committed
Thank You!!!
BE CLAM AND KEEP LEARNING