UNIT 1

HUMAN RESOURCE MANAGEMENT

Human: refers to the skilled workforce in an organization.
Resource: refers to limited availability or scarce.
Management: refers how to optimize and make best use of such limited or scarce resource
so as to meet the organization goals and objectives.
Therefore, human resource management is meant for proper utilization of available skilled
workforce and also to make efficient use of existing human resource in the organization. The
best example in present situation is, construction industry has been facing serious shortage
of skilled workforce. It is expected to triple in the next decade from the present 30 per cent,
will negatively impact the overall productivity of the sector, warn industry experts.
Today many experts claim that machines and technology are replacing human resource and
minimizing their role or effort. However, machines and technology are built by the humans
only and they need to be operated or at least monitored by humans and this is the reason
why companies are always in hunt for talented, skilled and qualified professionals for
continuous development of the organization.
Therefore humans are crucial assets for any organisation, although today many tasks have
been handing over to the artificial intelligence but they lack judgement skills which cannot be
matched with human mind.

DEFINITION
According to Flippo, HRM is “planning, organizing, directing and controlling of the
procurement, development, compensation, integration, maintenance, and separation
of human resources to the end that individual, organizational and societal objectives
are accomplished”.

Robbins and Decenzo define ” HRM is a process of acquiring, retaining, developing,

terminating and properly using the human resources in an organization”.

Definition by Graham

” The purpose of HRM is to ensure that the employees of an organization are used in
such a way that the employer obtains the greatest possible benefit from their abilities
and the employees obtain both material and psychological rewards from their work”

FUNCTIONS OF HRM

1. Recruitment and Selection: HRM is responsible for attracting, screening, and

selecting qualified candidates for job openings in an organization. For example, a
company hiring a software engineer can use HRM functions to collect resumes,
perform background checks, interview candidates, and make a job offer.

2. Training and Development: HRM provides training and development programs to

enhance the skills and knowledge of employees. For example, a retail company might
create videos or organize seminars to improve the customer service skills of their sales
staff.

3. Performance Appraisal: HRM evaluates employee performance against established

goals and standards. For instance, a senior manager might assess the productivity of
a particular employee using performance metrics to determine whether an employee
has met or exceeded performance expectations.

4. Employee Relations: HRM manages employee grievances, concerns, and conflicts

to promote a positive work environment. For example, HRM can arrange employee
recreation or resolve interpersonal conflicts among staff to ensure a peaceful team
atmosphere.

5. Compensation and Benefits: HRM manages employee salary, benefits, and rewards
programs. For instance, a company might introduce in-house perks along with
competitive pay packages to retain top talents.

6. Legal Compliance: For ensuring the company follows legal requirements, HRM
manages organizational compliance with employment laws and regulations.
Employers must comply with the Americans with the Disabilities Act (ADA), the Family
and Medical Leave Act (FLMA), and various other rules and regulations that could
impact their workers.

7. HR Analytics: HRM executives use analytics platforms to assess employee data to

predict turnover rates, identify skills gaps, and develop a workforce planning strategy
by analyzing performances, training, and compensation, saving an enterprise many
dollars. Analyzing performance metrics for employee retention, future hiring, and
employee engagement can be a useful tool.

DIFFERENCE BETWEEN STRATEGIC HRM AND TRADITIONAL HRM

Strategic HRM and Traditional HRM are two commonly used approaches to managing
human resources. The main differences between them are as follows:

1. Focus: Traditional HRM focuses on administrative tasks such as payroll and

benefits management, while Strategic HRM is aimed at aligning HR with the overall
business strategy to achieve organizational objectives.
2. Scope: Traditional HRM has a narrow focus and mainly focuses on staffing,
employee relations, and compliance. In contrast, Strategic HRM has a more expansive
scope and includes broader aspects such as workforce planning, talent management,
and data analytics.

3. Timeframe: Traditional HRM has a short-term focus, whereas Strategic HRM has a
long-term perspective.

4. Employee relations: Traditional HRM tends to view employees as resources to be

managed, whereas Strategic HRM emphasizes employees as valuable assets that
require investment and development.

5. Organizational culture: Traditional HRM tends to maintain the status quo of an

organization’s culture and norms. In contrast, Strategic HRM is focused on shaping
the organizational culture that aligns with its strategies.

6. Relationship with top management: Traditional HRM is reactive, while Strategic

HRM is proactive in aligning HRM with the organization's overall strategies. Strategic
HRM is more closely aligned with the organization's top management and works
closely with them on business strategies.

7. Performance measurement: Traditional HRM is generally evaluated based on set

performance metrics such as compliance, employee satisfaction, and retention rates.
On the other hand, Strategic HRM is measured based on both non-financial and
financial metrics, including employee productivity, workforce engagement, and ROI.

In summary, Traditional HRM is focused on administrative tasks and is reactive, while

Strategic HRM is more proactive in aligning HR with the organization's overall
business objectives. Strategic HRM adopts a broader approach, has a long-term
perspective, and considers the organization's culture, talent management, and data
analytics, all of which are aimed at achieving the company's mission, vision, and long-
term goals.

COMMODITY COCEPT

The commodity concept in HRM refers to the idea that employees are seen as a
means of production, a commodity that can be bought and sold in the labor market.
This view sees employees as replaceable parts that can be hired, fired, or transferred
to other departments or units at will. This concept assumes that workers are motivated
only by economic incentives and are interchangeable.

This approach to HRM is criticized for being too mechanistic, leading to employee
discontent and turnover, and not considering the emotional needs of employees. The
commodity concept in HRM is widely viewed as outdated and non-productive.
Today, HR departments are increasingly focused on developing and implementing
policies that recognize employees as valuable stakeholders with specific skill sets,
personalities, and aspirations that contribute to the overall success of the organization.
HR departments have begun to create programs and initiatives that foster a positive
work culture and support employee engagement, satisfaction and retention. This
approach recognizes the unique value of each employee beyond their short-term
economic contributions, which can lead to long-term business success.

GOODWILL CONCEPT

The goodwill concept in HRM refers to the positive brand image that an organization
creates towards its employees by valuing them as valuable assets. Goodwill in HRM
is built through several efforts such as creating a positive work environment, investing
in human capital, and promoting diversity and inclusion. The goodwill concept is based
on the premise that employees are an essential part of the organization and are more
than just workers. They are human beings with emotions and personal aspirations,
which need to be respected and fulfilled.

Goodwill in HRM is important because it enhances employee motivation, productivity,

and loyalty. When employees feel valued, respected, and recognized, they tend to be
more engaged with their jobs and the organization. In return, the organization benefits
from their increased commitment and performance, which leads to better financial
outcomes.

HRM efforts to create goodwill include offering competitive compensation and benefits
packages, providing training and development opportunities, offering flexible work
arrangements, showing appreciation and recognition to employees, and fostering a
supportive work culture. When employees feel that their contribution is valued and
they are an integral part of the organization, they tend to stay loyal to the organization
and recommend it to other talented professionals. This generates a positive image for
the organization and enhances its reputation of being a great place to work. Overall,
the goodwill concept in HRM is essential in creating a symbiotic relationship between
the organization and its employees.

EVOLUTION OF HRM

The evolution of the concept of Human Resource Management is presented below

Period before industrial revolution – The society was primarily an agriculture economy with
limited production. Number of specialized crafts was limited and was usually carried out
within a village or community with apprentices assisting the master craftsmen.
Communication channel were limited.

Period of industrial revolution (1750 to 1850) – Industrial revolution marked the conversion
of economy from agriculture based to industry based. Modernization and increased means
if communication gave way to industrial setup. A department was set up to look into
workers wages, welfare and other related issues. This led to emergence of personnel
management with the major task as

– Worker’s wages and salaries

– Worker’s record maintenance

– Worker’s housing facilities and health care

An important event in industrial revolution was growth of Labour Union (1790) – The works
working in the industries or factories were subjected to long working hours and very less
wages. With growing unrest , workers across the world started protest and this led to the
establishment of Labour unions. To deal with labour issues at one end and management at
the other Personnel Management department had to be capable of politics and diplomacy ,
thus the industrial relation department emerged.

Post Industrial revolution – The term Human resource Management saw a major evolution
after 1850. Various studies were released and many experiments were conducted during
this period which gave HRM altogether a new meaning and importance.

A brief overview of major theories release during this period is presented below

● Frederick W. Taylor gave principles of scientific management (1857 o 1911) led to the
evolution of scientific human resource management approach which was involved in

– Worker’s training

– Maintaining wage uniformity

– Focus on attaining better productivity.

● Hawthorne studies, conducted by Elton Mayo & Fritz Roethlisberger (1927 to 1940). –
Observations and findings of Hawthrone experiment shifted the focus of Human
resource from increasing worker’s productivity to increasing worker’s efficiency through
greater work satisfaction.
● Douglas McGregor Theory X and Theory Y (1960) and Abraham Maslow’s Hierarchy of
needs ( 1954) – These studies and observations led to the transition from the
administrative and passive Personnel Management approach to a more dynamic Human
Resource Management approach which considered workers as a valuable resource.
As a result of these principles and studies , Human resource management became
increasingly line management function , linked to core business operations. Some of the
major activities of HR department are listed as-

1. Recruitment and selection of skilled workforce.

2. Motivation and employee benefits
3. Training and development of workforce
4. Performance related salaries and appraisals.
Strategic Human Resource Management Approach
With increase in technology and knowledge base industries and as a result of global
competition , Human Resource Management is assuming more critical role today . Its major
accomplishment is aligning individual goals and objectives with corporate goals and
objectives. Strategic HRM focuses on actions that differentiate the organization from its
competitors and aims to make long term impact on the success of organization.

TRENDS SHAPING HRM

Human Resource responsibilities have become broader and more strategic over time in
response to a number of trends. The role of HR has evolved from primarily being
responsible for hiring, firing, payroll, and benefits administration to a more strategic role in
employee selection, training, and promotion, and an advisory role to the organization in
areas of labor relations and legal compliance.
The after-effects of the pandemic have left a paradigm shift everywhere.
To be on top, the HR industry has to bring a working model into practice that maximizes
productivity and increases flexibility and efficiency simultaneously.
HR is changing its structure almost every day in accordance with the changes in technology.
With the right measures and approaches from enterprise leaders, it ought to have a positive
impact on the daily operations, and subsequently the employees too.
1. A hybrid structure

The personnel groups relocated when work-from-home became a routine, leaving all the
teams and companies to disband from one particular geographical location to anywhere in
the nation.

Where some organizations are encouraging their employees to start in-office jobs again,
many are content with a hybrid culture and are continuing to play by that.

Which route your organization takes can make a whole lot of difference between keeping or
losing the workforce — around 40% of the workforce shared that they’d consider quitting if
their organization puts a halt on hybrid culture.

Hybrid work culture is also a natural first step today for a business to expand in foreign
markets too. The hybrid culture automatically opens the door for new opportunities for
growth and earnings. Over the past few years, expanding through foreign markets has
become easier and more affordable due to the rise in hybrid culture.

2. Global expansion on the rise

Shifting your work into the global market – remote working is an initial step. With changing
times and technology the trends in HRM have taken a turn too, and the inauguration of a
business in foreign lands is becoming a cakewalk. Furthermore, governments uplifting strict
policies in this post-pandemic era – support the businesses too.

3. Employee experience takes precedence

Employees today don’t just want a good paycheck but a quality culture and healthy work
environment as well. As a part of trends in HRM, a good remuneration retains an employee,
and a qualified environment and experience assist in the choice too.
HR leaders should bring about methods to encourage positive workforce health, making the
employees more flexible to changes and disruptions.
Organizations today are offering products, services, and methods to enhance not their own
but other firms employee experiences as well. Employee management, time & attendance
management, employee self service portals, leave management, etc., are all a part of the
trends in HRM culture today.
4. Analytics gaining the front seats

With no physical human contact, tracking and measuring the work and employees became
strenuous, especially when the workforce is spread throughout the globe. Analytic is said to
play an impacting role in offering information for decision-making.

Employee management is an integral part of an organization. What work to assign to which

employee, tracking their progress, ensuring completion of OKRs, and rewarding the
employees accordingly is very important to make the functions of a firm a success.

5. A surge in monitoring the employees

With the growing number of hybrid workers, managers are often unable to scrutinize every
single employee and their work. The lack of personal interaction led to a surge in employee
monitoring techniques that gave birth to yet another set of trends in HRM.

Keeping track of work and performance, attendance, and leaves, are just a portion of
employee monitoring practices.

6. Automation of everyday tasks

To give precedence to high-value and productive workings, HR leaders can leverage AI-
powered solutions to automate their daily tasks that were carried out manually. Practices
such as screening, sourcing talents, on boarding, keeping check of attendance, etc., and a lot
more now can be carried out by the systems in this tech-driven world.
Proper workflows are set to streamline all the automation and to avoid any errors. All these
trends in HRM are changing the face of a workplace and skyrocketing the growth of every
organization leveraging these methods.

7. Augmenting the hiring processes

Yet another perk that can be considered as a part of trends in HRM are chat-bots. With their
assistance, employers can now manage to select quality candidates for relevant positions
out of the ample talent pools available.

Functions such as resume screening choose explicit candidate profiles, subsequently ensuing
in higher work performance and enhanced productivity. Solutions such as an Applicant
Tracking Software are one of the latest trends in HRM today. An ATS streamlines the entire
hiring process from job posting to on-boarding and much more. Integration with job boards
is yet another trends in HRM that posts jobs on multiple websites with a single click.

STRATEGIC HUMAN RESOURCE MANAGEMENT

● Strategic human resource management is a proactive approach that aligns human

resource functions with the strategic goals and objectives of an organization.It
involves developing and implementing HR strategies and policies that enable
organisation to recruit,select,train,develop,and retain employees in ways that
support their overall business strategy.
● SHRM takes a long term perspective that focuses on building a skilled and motivated
workforce that can consistently contribute to the organization's success.It considers
the external environment ,including market conditions and industry trends along
with the internal factors such as the organisational culture,values and goals.
● SHRM involves a process of aligning HR functions with the strategic objectives of the
company.This includes developing workforce plans,talent acquisition strategies,
employee development programs, compensation and benefit plans, employees
engagement initiatives and performance management practices.
● Effective SHRM can help organisation to attract and retain top talent,which can lead
to increased productivity,greater innovation,and higher levels of customer
satisfaction.it also helps to ensure that HR policies and practices are in line with legal
and regulatory requirements,while also promoting diversity,equity and inclusion
within the workplace.

HARVARD BUSINESS MODEL OF HRM

1. The harvard framework is a model designed by the Harvard business school and is
the most influential model of HRM.It is based on the work of Paauwe and Richardson(1997).
2. The model is associated as soft HRM ,as its primary focus is based on outcomes for
people,their well being and organisation commitment.

3. The model views employees as stakeholders in the business who have their own
interest.They will only commit to an organization if they want to.It focuses on gaining
employee commitment and co-operation.

The model is subsequently divided into five different sections and includes feedback loops
to show that every element of the model affects or interplays with other elements.
The five critical elements of the Harvard HRM model include:

1. Stakeholder Interest

The model proposes that multiple stakeholders’ values, input and perspectives must be
considered before creating any policies. These stakeholders include management, employee
groups, government, the community and even unions.

2. Situational Factors

Before making policy choices, both internal and external factors should be considered as
they all influence how humans operate. The model suggests looking at the following
situational factors: workforce characteristics, business strategy and conditions,
management philosophy, labour market, unions, tasks, technology, law and societal values.

3. HRM Policies and Policy Choices

The diagram below shows the way HRM policy areas interconnect:

HR policies require both work systems and reward systems to function. In other words: HR
policy determines the approach management will take to work, rewards, how HR functions
and how employees are influenced.

Employees work effectively when these elements find balance.

4. HR Outcomes

One of the most interesting and possibly best-known aspects of the Harvard HRM
Framework is the list of HR outcomes (the 4Cs): Commitment, Congruence, Competence
and Cost-effectiveness.
 Here’s an example of how the 4Cs work:

1. If you find the right balance of HR policies, employees commit to organizational

goals (and overall organizational development).

2.When employees are well-suited to management styles and collaborate effectively, you
achieve congruence.
3.A competent organization can attract, retain and develop employee competencies.
4.Can you maintain costs while helping employees stay motivated and satisfied with their jobs?
If the answer is yes, you will have cost-effectiveness.

5. Long-Term Consequences

In essence, if you use the Harvard HRM model to prepare and execute HRM strategy, the
belief is that there will be far-reaching, long-term consequences. The model argues that if
an HRM strategy meets employees’ needs, this will help the organization compete with the
external market while benefiting society and the community.

GUEST MODEL OF HRM

● The guest model can be defined as the combination of soft and hard HRM approaches
for achieving company’s goals using strategic policies.
● In a hard approach, the HR professionals use business strategy with the human
resources techniques strictly. If we talk about the soft approach, it purely concerns the
workers to make sure they stay encouraged to fulfill the company’s goals. This approach
is usually applied when the managers have solid trust in the employees.
● The guest model is used for enjoying the benefits of both these approaches in a
completely strategic manner. It targets the individual employees instead of a complete
workforce that ensures companies can create flexibility in their business. This model
was developed by David Guest in 1987 with a motive to resemble hard and soft
approaches.
David Guest’s (1989, 1997) model of HRM has 6 dimensions of analysis:
>> HRM strategy
>> HRM practices
>> HRM outcomes
>> Behaviour outcomes
>> Performance outcomes
>> Financial outcomes
▪ HRM Strategy
It includes the overall strategy used by HRM for achieving the goals of the company. HRM
strategy is a very critical prospect in Guest Model created by David Guest.

▪ HRM Practices
If we talk about practices in HRM, there are lots of things that need to be addressed. It
includes hiring, training, appraisal, relation, and many more.

▪ HR Outcomes
The third most important perspective of the guest model is HR outcomes that can’t be
compromised at all. It basically consists of commitment, flexibility, and quality that make
sure every goal of the company gets fulfilled.

▪ Behavioral Outcomes
The behavioral outcomes mean the different sequences of actions performed by the
employees of the company for completing a task. It greatly affects the overall growth of the
organization.

▪ Performance Outcomes
The performance outcomes drive the performance of the company so that the goals can be
achieved adequately. It is helpful in contributing to the overall growth of the company.

▪ Financial Outcomes
The final perspective of the Guest model is the financial outcomes of the guest model. It let
the HR department know how about the profit and revenue that the company generates.

What are the important components of the guest model in HRM?

There are four major components proposed by the guest model proposed by David Guest.
Its main motive is to underpin the effectiveness of the company.The 4 components are:

▪ Strategic Integration
Strategic integration is one of the toughest parts of the guest model as all the human
resources must be treated precisely. The reason behind that is they are the main pillars for
fulfilling business goals. That’s why you will always see how important role played by
strategy for the success of the company.

▪ Flexibility
According to the guest model, there is a huge relation of flexibility with the company and its
employees’ ability to adapt to the working environment. It is strongly concerned with the
behavioral abilities of organization. Having enough flexibility will ensure the worker behave
perfectly well for the company.

▪ High Commitment
The guest model puts a strong emphasis on the high commitment in a company. It is
required to have behavioral commitments using a solid identification with the organization.
Having employees with the right sort of commitment makes sure the company reaches its
goals adequately.
 ▪ Quality
The guest model’s fourth important prospect is quality based on the assumption for top-
notch goods and services. It means the company should have quality people. There is no
way that a company can think about compromising the quality of its business.

ULRICH’S MODEL

● The David Ulrich HR model is used by big, customer-focused companies around

the world to improve efficiency and efficacy in their HR departments.

● Ulrich's model helps to organize roles and responsibilities across HR

departments, defining who is responsible and accountable for the key tasks that
contribute to the smooth running of any business.

What is The David Ulrich HR model?

The Ulrich model of HR is a model that helps to organize roles and responsibilities
across HR departments. This HR model was first introduced by David Ulrich in 1995
as a way of organizing HR functions.
Meant particularly for large corporations with big and unwieldy teams, the model is
designed to streamline ways of working and ensure every team member is clear on
their roles and responsibilities, and what they're accountable for.
Ulrich splits HR into four key sections:
1. Strategic Partner. The Strategic Partner is there to help manage the development
and growth of the workforce. They look to the customer to see what they could make
better, and they review the systems and processes that might help to deliver what the
customer wants and needs more efficiently.
2. Administrative Expert. The Administrative Expert has more of an internally focused
role. They manage costs, people, and the overall delivery of the day-to-day 'business as
usual' output.
3. Change Agent. The Change Agent looks into the company's overall culture and thinks
about how it can be better, both from a personal and professional perspective. They'll
connect with line managers to lead and facilitate change to make the organization a better
place for everyone.

4. Employee Champion. The Employee Champion aids employees to speak up and

ensures they feel heard and respected at work. They support the delivery of processes and
practicalities that ensure safeguarding, and they can also help to make sure the company's
people are happier and healthier, which is of huge overall benefit to the organization.

● This sets up the framework for a high-functioning HR department and clearly defines
which roles should be focused on people and processes. Within those roles, it states
whether each individual should be looking at operational or strategic planning.
● The core goals attached to the model are to:
1. Create a high-functioning and unified team structure
2. Define every role in the department
3. Ensure the company is performing to its best and operating competitively
4. Measure performance to consistently do better
● The model was particularly revolutionary at the time as it put talent sourcing and
future-thinking firmly on the radar, and showed them to be as significant as the more
traditional HR roles of employee assistance and administrative tasks.

Is the David Ulrich HR model still relevant?

● When Ulrich's HR model came out, HR departments were not generally as efficient and
forward-thinking as they are now and there was certainly a need for a foundation on
which to base and build a team on.
● These days, HR teams in big businesses tend to run like well-oiled machines; delivering
both the everyday output that ensures people feel supported and well looked after,
while also proactively looking to the future by sourcing talent, working on strategies,
and helping to stay one step ahead of the competition.
● A lot may have changed in terms of landscape, but the Ulrich model still has a great deal
of importance and relevance for modern businesses. Especially those with HR
departments that recognize it as a useful foundation, and can build on it in a way that
works for the particular needs of their business.

AMO FRAMEWORK
● The AMO model is an HR model that explains the relationship between HR practices and
performance by analysing HR approaches that improve ability, motivation and
opportunity.
● It highlights the three separate work system elements that form employee
characteristics and affect organisational progress. HR professionals can use an
individual's ability, motivation and opportunity to measure their performance.
● An organisation that considers an employee's ability, motivation and opportunity can
more readily achieve its goals, as it helps to improve the functioning of its staff.
Organisational leaders can use this model to influence employees' performances.
● A company that prioritises all three elements can enjoy more success than an
organisation that only prioritises one or two.
● If employees perform optimally, the organisation can achieve its goals. Institutions can
optimize the three elements to enhance employees' performance and achieve their
objectives.
● HR professionals can use an individual's ability (A), motivation (M) and opportunity (O)
to measure their performance (P). We can represent this information with the following
equation:
P = AMO

1.Ability
Organisation can use selective recruitment and employment to ensure they hire candidates
with specific abilities. HR departments can review existing information, develop internal
policies and scrutinize candidates to ensure they choose qualified ones. HR can also
organise training for an employee. For example, if an employee's job involves new
technology, the organisation can sponsor classes or seminars to help them learn and
understand the new technology.
2.Motivation
Organizations can use compensation, work-life balance, performance-based pay and
performance evaluations to motivate employees to perform better. They may also motivate
their staff by expressing empathy, avoiding arguments, addressing discrepancies, listening
reflectively, supporting efficacy and managing resistance. For example, an organisation can
arrange meetings, provide suggestion boxes and review its HR operations to implement
these HR applications.
3.Opportunity
An organisation's culture can promote high-performing work practices. It can encourage
teamwork, autonomy, communication, participation, information sharing and engagement
during decision-making. Employees can leverage these opportunities, optimizing their
performance and the organization's success.

LINE AND STAFF ASPECTS OF HRM

HR managers probably involve in different activities of a business like recruiting,
interviewing, selecting, training, promotion, staff compensation, etc. These all activities
comes under the umbrella of line and staff aspects of HRM.

1. Authority

Authority is the right to make decisions,to direct the work of others,and to give orders.
Authority refers to the rights inherent in a managerial position to give orders and expect the
orders to be obeyed.Authority was a major tenet of the early management writers.the glue
that held the organisation together.it was to be delegated downward to lower level
managers.

Each management position has specific inherent rights that incumbents acquire from the
position’s rank or title.Authority is related to one’s position and ignores personal
characteristics.When a position of authority is vacated,the authority remains with the
position.The early management writers distinguished between two forms of authority.
a)Line authority
b)Staff authority
c)Functional authority

a. Line Authority:Line authority entitles a manager to direct the work of an employee. It is

the employer-employee authorityrelationship that extends from top to bottom. A line
manager directs the work of employees and makescertain decisions without consulting
anyone. Sometimes the term line is used to differentiate line managersfrom staff managers.
Line emphasizes managers whose organizational function contributes directly to
theachievement of organizational objectives.

b. Staff Managers and Staff Authority:Staff managers have staff authority. A manager's
function is classified as line or staff based on theorganization's objectives. As organizations
get larger and more complex, line managers find that they do nothave the time, expertise,
or resources to get their jobs done effectively. They create staff authority functionsto
support, assist, advice, and generally to reduce some of the informational burden they have.

c. Functional control:The authority exerted by a personnel manager as a coordinator of

personnel activities. Here the manageracts as "the right arm of the top executive.

II. Line versus Staff Authority:

1. Line Versus Staff Authority - Authority is the right to make decisions, to directthe work
of others, and to give orders. Line managers are authorized to direct the work of
subordinates.Staff managers are authorized to assist and advise line managers in
accomplishing their basic goals. HRmanagers are generally staff managers.
2. Line Managers' HRM Responsibilities -:Most line managers are responsible for line
functions,cordinative functions and some staff functions.

III.Cooperative line and staff hr management:

In recruiting and hiring, it's generally the line manager's responsibility to specify the
qualificationsemployees need to fill specific positions. Then the HR staff takes over. They
develop sources of qualifiedapplicants and conduct initial screening interviews. They
administer the appropriate test. Then they referthe best applicants to the supervisor (line
manager), who interviews and selects the ones he/she wants.
IV. Line Manager
Authorized to direct the work of subordinates--they're always someone's boss. In addition,
line managersare in charge of accomplishing the organization's basic goals.
● Line Managers' Human Resource Management Responsibilities
1.Placement
2.Orientation
3.Training
4.Improving job performance
5.Gaining creative cooperation
6.Interpreting policies and procedures
7.Controlling labor costs
8.Developing employee abilities
9.Creating and maintaining departmental morale
10. Protecting employees' health and
Physical condition.

V. Staff Manager
Authorized to assist and advise line managers in accomplishing these basic goals. HR
managers aregenerally staff managers.

● Responsibilities Of Staff Managers

Staff managers assist and advise line managers in accomplishing these basic goals. They do,
however, needto work in partnership with each other to be successful. Some examples of
the HR responsibilities of staff managers include assistance in hiring, training, evaluating,
rewarding, counseling, promoting, and firing ofemployees, and the administering of various
benefits programs.
VI. Human Resource Manager:An individual who normally acts in an advisory or staff
capacity, working with other managers to help themdeal with human resource matters. One
general trend is that HR personnel are servicing an increasing number of of employees. The
human resource manager is primarily responsible for coordinating the management of
human resources to help the organization achieve its goals. There is a shared responsibility
between line managers and human resource professionals.The recognition of HR as a
legitimate unit has made it highly strategic in nature and more critical to achieving
corporate objectives.to succeed Hr executives must understand the complex organizational
design and be able to determine the capabilities of the company's workforce, both today
and in the future. HR involvement in strategy is necessary to ensure that human resources
support the firm's mission. The future appears bright for
For Hr managers willing to forge a strategic partnership with business unit.
VII. Distinguish among human resource executives, generalists, and specialists.

a. HR Executives
Executives are top-level managers, who report directly to the corporation's chief executive
officer or thehead of a major division.

b. HR Generalists:
Generalists are people who perform tasks in a wide variety of human resource-related
areas. The generalistis involved in several, or all, of the human resource management
functions.

c.HR Specialist:
Specialist may be a human resource executive, manager, or non-manager who typically is
concerned withonly one of the functional areas of human resource management

UNIT 2
JOB ANALYSIS

Job analysis refers to a systematic process of collecting all information about a specific job,
including skill requirements, roles, responsibilities and processes in order to create a valid
job description. Job analysis also gives an overview of the physical, emotional & related
human qualities required to execute the job successfully.

Job analysis is an important step in ensuring that the right candidate is selected. Job analysis
helps the employer in recruitment and selection, performance management, choosing
compensation and benefits, etc. It helps the employees to have a clear picture of what is
actually required of them.

Where to place the employees in order to best utilize their skills and talent? How to
determine the need of new employees in the organization? How to eliminate unneeded
jobs? How to set realistic performance measurement standards? How to identify the jobs
and prepare a plan to fill them?
Well, all this can be effectively done by a proper and thorough job analysis.

In the words of Edwin B. Flippo, "Job analysis is the process of studying and collecting
information relating to the operations and responsibilities of a specific job"
According to Blum, "A job analysis is an accurate study of the various components of a job.
It is concerned not only with an analysis of the duties and conditions of work, but also with
the individual qualifications of the worker."

The intention behind job analysis is to answer questions such as:

● what is the need of the job to exist?

● What physical and mental activities does the worker undertake?

● When is the job to be performed?

● Where is the job to be performed?

● How does the job performed by an employee?

● What qualities and qualifications are required to perform the job?

Why is a job analysis important?

Manpower Planning
Job analysis is a qualitative aspect of manpower needs, as it determines job requirements in
terms of skills, qualities and other human characteristics. This facilitates the division of labor
into different occupations.

Recruitment, Selection and Placement

In order to hire a good person for the job, it is very important to know the requirements of
the job and the qualities of the person who will be doing the job. Information on these two
elements comes from the job description or job description and helps management to tailor
the job requirements as closely as possible to the attitudes, skills, interests of employees,
etc.

Training and Development:

Job analysis determines standard levels for job performance. Helps manage learning
development programs.

Job Evaluation
Job analysis provides the basis for job evaluation. The purpose of a job appraisal is to
determine the relative value of the job which in turn helps determine job compensation.

Performance Appraisal
Job analysis data provides a clear standard of performance for each job. Employee
performance can be objectively evaluated against the job performance standard.

Job Designing
Industrial engineers may use the job analysis information in designing the job by making the
comprehensive study of the job elements.

Safety and Health

Management can take corrective actions to ensure the safety of workers and reduce the risk
of various hazards to eliminate harmful conditions.

Promotions
The job analysis is mainly based on the effective policies. Effective policies may be
formulated in regard to promotions and transfers.

Employment Guidance
Job description, which is basically carried out on the basis of Job analysis, helps the aspirates
in ascertaining the job, for which they have the necessary ability and skills.

Labour Relations
Job analysis serves as the basis for resolving disputes that may arise due to quality of
performance expected of workers.

JOB ANALYSIS PROCESS

1. Setting objectives:
Probably the most important consideration is to identify the objectives of the job analysis.
Maybe it is just to update job descriptions. Or, it may include as an outcome revising the
compensation programs in the organization. Another objective could be to redesign the jobs
in a department or division of the organization. Also, it could be to change the structure in
parts of the organization to align it better with business strategies. Whatever the purpose
identified, it is vital to obtain top management support. The backing of senior managers is
needed as issues arise regarding changes in jobs or the organizational structure. Support
from even the highest levels of management helps when managerial and employee
anxieties and resistance arise.

2.. Preparing and Introducing the Job Analysis

Preparation begins by identifying the jobs under review. For example, are the jobs to be
analyzed hourly jobs, clerical jobs, all jobs in one division, or all jobs in the entire
organization? In this phase, those who will be involved in conducting the job analysis and
the methods to be used are identified.
Also specified is how current incumbents and managers will participate in the process and
how many employees’ jobs will be considered. Another task in the identification phase is to
review existing documentation. Existing job descriptions, organization charts, previous job
analysis information, and other industry-related resources all may be useful to review.
Having details from this review may save time and effort later in the process. A crucial step
is to communicate and explain the process to managers, affected employees, and other
concerned people, such as union stewards. Explanations should address the natural
concerns and anxieties people have when someone puts their jobs under close scrutiny.
Items to be covered often include the purpose of the job analysis, the steps involved, the
time schedule, how managers and employees will participate, who is doing the analysis, and
whom to contact as questions arise. When employees are represented by a union, it is
essential that union representatives be included in reviewing the job descriptions and
specifications to lessen the possibility of future conflicts.

3. Conducting the Job Analysis

With the preparation completed, the job analysis can be conducted. The methods selected
will determine the time line for the project. Sufficient time should be allotted for obtaining
the information from employees and managers. If questionnaires are used, it is often
helpful to have employees return them to supervisors or managers for review before giving
them back to those conducting the job analysis. The questionnaire should be accompanied
by a letter explaining the process and instructions for completing and returning the job
analysis questionnaires. Once data from job analysis has been compiled, it should be sorted
by job, the job family, and organizational unit. This step allows for comparison of data from
similar jobs throughout the organization. The data also should be reviewed for
completeness, and follow-up may be needed in the form of additional interviews or
questions to be answered by managers and employees.
4. Developing Job Descriptions and Job Specifications
At this stage the job analysts will prepare draft job descriptions and job specifications. Later
in this chapter is a section discussing details on how to write job descriptions and job
specifications. Our purpose here is to emphasize that the drafts should be relatively
complete and identify areas where additional clarifications are needed. Generally,
organizations have found that having managers and employees write job descriptions is not
recommended for several reasons. First, there is no consistency in format and details, both
of which are important given the legal consequences of job descriptions. Second, managers
and employees vary in their writing skills. Also, they may write the job descriptions and job
specifications to reflect what they do and what their personal qualifications are, not what
the job requires.
5. Maintaining and Updating Job Descriptions and Job Specifications
Once job descriptions and specifications have been completed and reviewed by all
appropriate individuals, a system must be developed for keeping them current. Otherwise,
the entire process, beginning with job analysis, may have to be repeated in several years.
Because organizations are dynamic and evolving entities, rarely do all jobs stay the same for
years. Someone in the HR department usually has responsibility for ensuring that job
descriptions and specifications stay current. Employees performing the jobs and their
managers play a crucial role because, as those closest to the jobs, they know when changes
occur. One effective way to ensure that appropriate reviews occur is to use job descriptions
and job specifications in other HR activities.
For example, each time a vacancy occurs, the job description and specifications should be
reviewed and revised as appropriate before recruiting and selection efforts begin. Similarly,
in some organizations, managers review the job description during each performance
appraisal interview. This review enables the job holder and the supervisor to discuss
whether the job description still describes the actual job adequately or whether it needs to
be revised. In addition, a comprehensive and systematic review may be done during HR
planning efforts. For many organizations, a complete review is made once every three years,
or as technology shifts occur, and more frequently when major organizational changes are
made.

METHODS OF JOB ANALYSIS

● Work sampling
As a type of observation, work sampling does not require attention to each detailed action
throughout an entire work cycle. Instead, a manager can determine the content and pace of
a typical workday through statistical sampling of certain actions rather than through
continuous observation and timing of all actions. Work sampling is particularly useful for
routine and repetitive jobs.
● Employee dairy/ log
Another method requires that employees “observe” their own performances by keeping a
diary/log of their job duties, noting how frequently they are performed and the time
required for each duty. Although this approach sometimes generates useful information, it
may be burdensome for employees to compile an accurate log. Also, employees sometimes
perceive this approach as creating needless documentation that detracts from the
performance of their work. Interviewing The interview method of gathering information
requires that a manager or HR specialist visit each job site and talk with the employees
performing each job. A standardized interview form is used most often to record the
information. Frequently, both the employee and the employee’s supervisor must be
interviewed to obtain a complete understanding of the job.
Some typical interview questions include:

1. What is the job being performed?

2. What are the major duties of your job position? What exactly do you do?

3. What physical locations do you work in?

4. What are the education, experience, skill, and [where applicable] certification
andlicensing requirements?

5. In what activities do you participate?

6. What are the job’s responsibilities and duties?

7. What are the basic accountabilities or performance standards that typify your work?

8. What are your responsibilities? What are the environmental and working conditions
involved?

9. What are the job’s physical demands? The emotional and mental demands?

10. What are the health and safety conditions?

11. Are you exposed to any hazards or unusual working conditions?

The interview method can be quite time consuming, especially if the interviewer talks with
two or three employees doing each job. Professional and managerial jobs often are more
complicated to analyze and usually require longer interviews. For these reasons, combining
the interview with one of the other methods is suggested.
Questionnaires
The questionnaire is a widely used method of gathering data on jobs. A survey instrument is
developed and given to employees and managers to complete. The typical job questionnaire
often covers the areas shown below. The major advantage of the questionnaire method is
that information on a large number of jobs can be collected inexpensively in a relatively
short period of time. However, the questionnaire method assumes that employees can
accurately analyze and communicate information about their jobs. Employees may vary in
their perceptions of the jobs, and even in their literacy. For these reasons, the questionnaire
method is usually combined with interviews and observations to clarify and verify the
questionnaire information.
One type of questionnaire sometimes used is a checklist. Differing from the open-ended
questionnaire, the checklist offers a simplified way for employees to give information. An
obvious difficulty with the checklist is constructing it, which can be a complicated and
detailed process.
Job Analysis Questionnaire

1.Materials and equipment used

2.Financial/budgeting input

3.External and internal contacts

4.Knowledge, skills, and abilities used

5.Working conditions

6.Special duties performed less frequently

7.Duties and percentage of time spent on each

8.Work coordination and supervisory responsibilities

9.Physical activities and characteristics

10.Decisions made and discretion exercised

11.Records and reports prepared

12. Training needed

● Critical incident technique.

The critical incident technique involves observation and recording of examples of
particularly effective or ineffective behaviors. Behaviors are judged to be "effective" or
"ineffective" in terms of results produced by the behavior.
The following information should be recorded for each "critical incident" of behavior: (1)
what led up to the incident and the situation in which it occurred; (2) exactly what the
employee did that was particularly effective or ineffective; (3) the perceived consequences
or results of the behavior; and (4) a judgment as to the degree of control an employee had
over the results his or her behavior produced (to what degree should the employee be held
responsible for what resulted?).
The critical incident method differs from direct observation and work methods analysis in
that observations of behavior are not recorded as the behavior occurs, but only after the
behavior has been judged to be either particularly effective or ineffective in terms of results
produced.
This means that a person using the critical incident method must describe a behavior in
retrospect, or after the fact, rather than as the activity unfolds. Accurate recording of past
observations is more difficult than recording the behaviors as they occur.

● Functional job analysis (FJA)

This method is a comprehensive approach to job analysis. FJA considers:

1. goals of the organization,

2. what workers do to achieve those goals in their jobs,
3. level and orientation of what workers do,
4. performance standards, and
5. training content.

A functional definition of what is done in a job can be generated by examining the three
components of data, people, and things. The levels of these components are used to
identify and compare important elements of jobs given in the Dictionary of Occupational
Titles (DOT), a standardized data source provided by the federal government.
Specialized Job Analysis Methods Several job analysis methods are built on the
questionnaire approach. Some of these methods are described next.

● Position analysis questionnaire (PAQ)

The Position Analysis Questionnaire (PAQ) developed by McCormick, Jeanneret, and
Mecham (1972) is a structured job analysis instrument to measure job characteristics and
relate them to human characteristics.

a. The PAQ is a specialized questionnaire method incorporating checklists. Each job is

analyzed on 27 dimensions composed of 187 “elements.” The PAQ comprises six
divisions, with each division containing numerous job elements. The divisions include:
Information input: Where and how does the worker get information to do the job?

b. Mental process: What levels of reasoning are necessary on the job?

c. Work output: What physical activities are performed?

d. Relationships with others: What relationships are required to perform the job?
e. Job context: What working conditions and social contexts are involved?

f. Other: What else is relevant to the job?

The PAQ focuses on “worker-oriented” elements that describe behaviors necessary to do
the job, rather than on “job-oriented” elements that describe the technical aspects of the
work. Although its complexity may deter many potential users, the PAQ is easily quantified
and can be used to conduct validity studies on selection tests. It is also useful in helping to
ensure internal pay fairness because it considers the varying demands of different jobs.

● Managerial Job analysis

Because managerial jobs are different in character from jobs with clearly observable
routines and procedures, some specialized methods have evolved for their analysis. One of
the most well known and widely used methods was developed at Control Data Corporation
and is labeled the Management Position Description Questionnaire (MPDQ). Composed of a
listing of over 200 statements, the MPDQ examines a variety of managerial dimensions,
including decision making and supervising.
● Computerized Job Analysis
As computer technology has expanded, researchers have developed computerized job
analysis systems. They all have several common characteristics, including the way they are
administered. First, analysts compose task statements that relate to all jobs. They are then
distributed as questionnaires that list the task statements. Next, employee responses on
computer-scannable documents are fed into computer-based scoring and reporting services
capable of recording, analyzing, and reporting thousands of pieces of information about any
job.
An important feature of computerized job analysis sources is the specificity of data that can
be gathered. All of this specific data is compiled into a job analysis database.
A computerized job analysis system often can reduce the time and effort involved in writing
job descriptions. These systems have banks of job duty statements that relate to each of the
task and scope statements of the questionnaires.
As is evident, the melding of computer technology with job analysis methodology allows
firms to develop more accurate and comprehensive job descriptions, linked to
compensation programs, and performance appraisal systems. These processes can also
provide better data for legal defensibility than was once available.
● Combination Methods
There are indeed a number of different ways to obtain and analyze information about a job.
No specific job analysis method has received the stamp of approval from the various courts
in all situations. Therefore, in dealing with issues that may end up in court, care must be
taken by HR specialists and those doing the job analysis to document all of the steps taken.
Each of the methods has strengths and weaknesses, and a combination of methods
generally is preferred over one method alone.
 JOB DESCRIPTION

Job description refers to a written informative documentation that states the duties, tasks,
responsibilities and qualifications of a job, based on the findings of a job analysis. Job
description is used either in the recruitment process to inform the applicants of the job
profile and requirements or in the performance management process to evaluate the
employee’s performance.
A job description is a brief introduction to everything that a job entails. It is a window into:

● What the role expects of the applicant,

● Where the applicant is to work out of (job location),and
● How exactly they would fit into the organization offering the job if they were to join them.

What is a job description example?

Here is a small example, keeping an accounting position in consideration:

Job Title:

Accounting Assistant

Key Responsibilities:

● Keep records of internal and external payments.

● Prepare budget sheets.
● Keep record of taxes and deductions.

Brief about the job:

We are looking for an accountant who would manage all financial payoffs, take record of all
payments, and manage bank deposits along with various budgets.

Requirements:

● 2 years of work experience as an accountant.

● Computer skills with professional level expertise in MS Excel and Google Sheets.
● Accounting experience with general ledger keeping.
● Analytical and problem-solving skills.
● Experience using FreshBooks and QuickBooks.

JOB SPECIFICATIONS
Job specification can help hiring managers decide which qualities and requirements are
most important in a candidate. When reading these job specifications, a candidate can
decide whether they have the right experience, education and characteristics to apply for a
specific job.
A job specification is the list of recommended qualities for a person to qualify for and
succeed in a position. While the job description includes the title position, responsibilities
and summary, the specification identifies the skills, traits, education and experience a
candidate might need to qualify for that job.

● Elements of a job specification

Although the job specification might vary from position to position, there are a few common
elements you can expect to see in many of them, including:

1. Required experience
This job specification is where an employer might include the required experience in an
exact role or relevant experience in similar roles. Entry-level positions, for example, might
specify they don't require any experience, but a director job might want seven years of
experience in managerial roles.

2. Required education
A job specification can indicate the level of education required to qualify. Education
requirements may include general accomplishments like a high school diploma, associate or
bachelor's degree, several years completed towards a degree or one in a specific area of
study. You might include this to ensure the employee has the proper context and knowledge
to perform their job duties successfully.
3. Required certification or credentials
In addition to education, some positions require certification or licensure. This might align
with responsibilities in the job description because a company might have you get certain
credentials before you perform some tasks. For example, a mechanic job description might
list working on heavy machinery or trucks as a responsibility, or it could require a candidate
to have a certification to provide the services in the job specification. Credential
requirements also could vary based on location to account for local laws. For example,
substitute teachers could require state-level certification to qualify for a job even if they
earned a bachelor's degree and a state certification elsewhere.

4. Required skills
Hiring managers, employees and human resources professionals may work together to
establish the skills they want candidates to have. Skills can be what people might need to
complete their job tasks, and they can center on how the candidate may fit on a team or
reflect a company's culture. Skills included in a job specification can also vary based on job
level. For example, entry-level jobs might have fewer required skills because hiring
managers may expect new employees can develop them while working.

5. Personality traits
While skills can be technical or job-specific relating to how a person does their job,
personality traits are qualities that reflect a candidate's character. For example,
professionalism is a trait that describes a person who understands workplace etiquette and
is helpful and respectful to their coworkers. You might need this trait for a job in a formal
office setting. Matching every trait might not be a requirement, but they can explain what
characteristics may make it easier to perform well.

6. Demands
Jobs might specify if there are physical demands. For example, if a warehouse job
description says you will carry packages from one location to another, the job specification
might want you to be able to lift boxes up to 50 pounds. In this case, the specification
identifies how much weight the candidate might need to carry to ensure they can fulfill the
requirement. Similarly, an office job might require long hours at a computer, and the
specification can identify this to ensure the candidate's vision allows them to perform their
duties.

● Job specification examples

Depending on the job and industry, hiring managers might write different variations of job
descriptions. Some could include what the requirement or qualification is, as well as
modifiers like time or level of expertise. Here are some examples of job specifications for
each element:

Required experience
Here are some examples that show variations in experience specifications:

a) Sales associate: Must have a minimum of two years of experience with field selling and
one year of inside sales.

b) Senior director: The ideal candidate will have 10 or more years of senior management
and proven success managing teams in global locations.

c) Restaurant server: No experience required, but we will provide training on the job.

Required education
Here are a few examples of education requirements for different jobs:

A)Entry-level publishing job: Bachelor's degree in English, writing or related field required.

B)Mid-level manager: The ideal candidate must have a bachelor's degree in business
administration, management or related degree. Master's degree highly preferred.

C)Dental hygienist: Associate degree in science required with additional training hours.

Required certification or credentials

Some jobs that may include certifications in their job specification include:

A)Junior accountant: Bachelor's degree in accounting or related field along with the state's
public accounting certification.
B)Medical technician: Candidate must possess CPR certification and be MT certified in your
state.

Required Skills
Here are some examples of how to list skills in a job specification:

A)Administrative assistant: Must possess strong attention to detail, ability to multitask and
learn new email technology. Document and spreadsheet skills a plus.

B)Senior manager: The ideal candidate should be able to manage a team of five or more
individuals, be highly collaborative and be familiar with customer relationship management
technology.

C)Store clerk: Customer service skills, ability to operate a cash register.

Personality Traits
Here are some examples of how to include desired personality traits:

A)Restaurant chef: Ability to remain calm under stress and solve problems independently.

B)Market researcher: The ideal candidate should be aware of customer's attitudes when
requesting feedback and make decisions with little guidance.

C)Customer service associate: Can maintain a high level of professionalism when dealing
with upset customers.

Demands
Here are some ways you can phrase the demands of a job in the specification:

A)Forklift operator: Must be able to handle heavy machinery and work in inclement
conditions.

B)Video editor: The ideal candidate may have to view screens for long periods of time.
Content on the videos can contain many colors and flashes of lights.

C)Sales associate (retail): Must be able to spend many hours standing.

HUMAN RESOURCE PLANNING AND FORECASTING

Human Resource Planning is a process of forecasting and strategizing to meet the

organization’s demand and supply of manpower needs in the present and future. It is a
process to ensure that you have the right people with the right skillset in your team thereby
building a strong workforce capability in your organization.

HR forecasting is the process of predicting how a company's staffing needs change with time
so that it can remain prepared to operate successfully. Organizations use HR forecasting to
decide to hire more people, reduce their staffing or adjust how they divide responsibilities.
Since HR departments handle hiring, onboarding and training, they're best qualified to
execute this project. Companies might do HR forecasting periodically or continuously if their
business model involves frequent turnover or supply and demand changes.

Why is HR forecasting important?

HR forecasting is important because it ensures organizations can operate responsibly,

avoiding costs associated with lost productivity or over-staffing. Businesses large and small
experience personnel changes or external events that dramatically affect their ability to
meet clients' needs, produce enough products or complete certain tasks. HR forecasting
limits the financial and operational consequences of these occurrences and protects
businesses' bottom lines.

Here are some examples of how HR forecasting supports companies' interests:

Demand changes: Companies might adjust their teams' size to meet the demand that
changes seasonally or with consumer trends. For instance, retail stores typically hire more
staff ahead of the holiday season.
Supply changes: If a company depends on a particular material or good to operate, it may
make staffing adjustments as supply changes. For instance, a computer manufacturing plant
may reduce its operations for a few months amid a microchip shortage.

Market changes: Economic and market changes may affect how many employees a
company can have. For instance, a state law increasing the minimum wage might result in
some companies planning to fill fewer positions.

Internal staff changes: When employees retire, earn promotions or receive terminations,
their employers respond accordingly. Since most companies know ahead of time who in
their organization is changing roles or departing, they can forecast necessary replacements.

Resource availability changes: Companies' available resources often change, affecting their
staffing capacities. For instance, a growing company may purchase additional office space
and have more money to spend on the employees to fill it.

Strategies for effective HR forecasting

Here are several strategies your HR department can implement for effective forecasting:

● Delphi method
The Delphi method sources the opinion of multiple experts to analyze a problem. It uses an
intermediary to facilitate idea-sharing without personal biases or unproductive debate. In
companies with substantial HR departments, the Delphi method can be an effective strategy
for balancing competing perspectives on staffing needs. To use this method, the company
you work for can select the HR managers best qualified to predict how external and internal
factors would affect your team. Each one privately submits their ideas about how to prepare
for the future to the intermediary.

Once everyone submits their thoughts, the intermediary shares each opinion while keeping
its contributor anonymous, and the process repeats. Accounting for new insights, each HR
manager adjusts their proposal to be more accurate. The facilitator highlights any major
points of disagreement and the group addresses them until it reaches an actionable
consensus.

● Trend analysis
A trend analysis strategy uses historical data about the company's previous staffing to
predict its future needs. It compares your number of employees at different points in time
against metrics important to the business model. For instance, a car dealership might study
its past to determine what number of salespeople corresponded with the highest average
number of cars sold per employee. While not always exact, identifying such trends helps
businesses only pay for the labor they need while still providing excellent service and selling
inventory.

● Ratio analysis
Ratio analysis functions similarly to trend analysis because it establishes a connection
between key metrics and total staffing. It prioritizes identifying the exact ratio that enables
a business to operate well and then applies it to the future.

For instance, while preparing for a busy summer season, a resort might see how many
servers it had on staff in previous years and compare it to the number of guests it served. If
the ratio was one server for every 25 guests, then the HR department would hire as many
servers as necessary to maintain that ratio going into the next busy period.

● Supply forecasting
Supply forecasting refers to the strategy where businesses analyze their internal and
external access to qualified candidates. Internally, companies assess their teams to
determine who they could promote or laterally transition into open roles. They review
employees' qualifications and performance evaluations and decide how to use them as a
replacement for someone planning to retire or resign.

Externally, HR departments study the present labor market and relevant laws to determine
how these factors would affect hiring. They then revise their estimate of how much hiring
new employees would cost. For example, if research suggests that entry-level marketers are
making significantly more in recent years, the company may decide to hire one less new
marketer than it otherwise planned.

PROCESS OF HUMAN RESOURCE PLANNING

1. Analyze Objectives
The human resources planning process starts with the identification of the objectives of the
different departments in the organization. each department such as management,
marketing, production, finance, sales, etc. can have different objectives and they have
specific expectations related to human resources. The objectives can include recruiting new
employees for the process, reducing the number of employees by automating processes or
improving the knowledge and skill levels of existing employees.

By analyzing the objectives of each department of the organization, the human resources
planning team can identify the changes that will be necessary for the future of the
organization.

2. Inventory current human resources

Once the necessary changes are identified, the Human resources planning team should
create an inventory of the current human resources available in the organization. This
should include the current number of employees available in the organization, their
capacities, capabilities, and performance abilities. This helps the human resources team to
identify the methods of filling the upcoming job requirements and to create estimates for
internal and external recruitments that will be necessary.

3. Forecast the demand and the supply of employees

Based on the objectives of the different departments of the organization and the inventory
of the available resources, the Human resources planning team can forecast the demand of
the employees. Apart from that, based on the availability in the organization and the
employee market, the supply of the employees should be forecasted.

4. Estimate Gaps

Conducting a comparison between the demand and the supply of the employee availability
can help the human resources team to identify the gaps that can arise in the foreseeable
future. The gaps can arise as employment deficits as well as employment surpluses.
Employment deficits indicate the number of employees that need to be recruited and the
employment surpluses indicates the job terminations or transfers between departments.
Apart from that, the gaps can be used as an indication of the training and development
requirements for the employees.

5. Formulate Plan

Once the employment gaps are estimated, the Human resources planning team should
formulate a plan for the recruitment, training, development, termination,
interdepartmental transfers, promotion, or early retirement of employees based on the
requirements of the organization. The employment plan can vary based on the deficit or the
surplus estimated in forecasting the demand and supply stage.

6. Implement Plan
Once the human resources plan is formulated, the human resources department should
implement the plan in the organization. This should be aligned with the goals and objectives
of the organization as well as the goals and objectives of each department of the
organization.

7. Monitor, Control, and feedback

Once the human resources plan is implemented, the plan should be monitored continuously
to ensure the alignment of the plan to the objectives of the departments. The necessary
controls should be put in place and the feedback at each level should be obtained to
measure any defects in the implemented human resources plan. The necessary changes
should be implemented according to the feedback obtained in the ongoing process in order
to make the human resources plan a success.

UNIT 3
EMPLOYESS ORIENTATION-PURPOSE,
PROCESS
In a company’s recruitment process, employee orientation plays a
significant role. This is because the new joiners get to know about
the company with this programme.
In simple words, orientation refers to a well-planned process of
welcoming employees and providing all the necessary information
to them to make the new employees feel at ease in the organization.

▪ It not just makes the new employee feel assured and

comfortable with the new workplace, but also adds a sense of
belongingness to them.
▪ Talking about the duration of an orientation programme, which
varies from a couple of hours to several months. this greatly
rests upon the job requirements and the organization’s policies
and philosophy.
▪ Programmes like this generally give a briefing of the company’s
background and history, culture, mission and vision, work
practices, values and expectations, products and services
offered etc.
▪ Moreover, it must explain HR practices. This will include
explanations concerning pay scales and incentive schemes,
 probation period, training duration, working hours, overtime
rules, safety rules and so forth.
▪ Many organizations take the employees for visiting the office
premises and introduce them to all the departments and
facilities present in the workplace.
Objectives of Employee Orientation
The different objectives behind organizing an employee orientation
programme are to:

1. Formally and procedurally welcome the new hires.

2. Reduce the uneasiness, anxiety and hesitation in the new hires,
that they possess initially.
3. Deliver information and accustom them to the work practices.
4. Asses the new employees in a better way.
5. Teach employees the basics of work and safety measures they
have to take while working.
6. Develop team spirit in the new people
Types of Orientation
There are three main types of orientation:

General-idea Orientation

As the name suggests, this type of orientation covers basic

information regarding the organization. This may include details
relating to policies and practices, rules and regulations with regard
to timing, and attendance. Also, information concerning safety rules,
emergency exits, fire extinguishers and first-aid is given to
employees. Further, compensation-related details like salary,
incentive schemes, facilities etc. are also provided to them.

Job Specific Orientation

This type of orientation mainly focuses on the various aspects of the

job like duties and responsibilities, reporting authority, department-
specific matters, organizational structure, and so forth.

Traditional Orientation

If an organization uses general and frequently used materials to give

orientation to the new joiners it is traditional orientation. In these
cases, orientation is regarded as a ritual or one-off practice by the
firm. It tends to engage the employees on the first day and help
them get rid of their initial nervousness.

Modern Orientation

In the case of modern orientation, the programme is serves as a

beginning of a continuous process to transform an employee into an
asset to the organization. Apart from tackling the first-day concerns
of the new hires it also takes into consideration the training as well
as career needs in a sustained manner. It develops team spirit,
improves productivity and aims to achieve employee satisfaction
and retention.

Process of Development of Orientation Programme

The process of development of an orientation programme includes
six steps, these are:
Determining the firm’s policy and expectations
The first step in the process is to analyse the policies, mission and
vision statements of the enterprise. This is to ascertain the
expectations of the firm from its new hires and the kind of qualities
it wants to inculcate in them. It should also list out the type of data
the various departments need about the new joiners.
Ascertainment of objectives of the programme
There are a number of objectives in mind while organizing an
orientation programme. This may range from the removal of fear
and nervousness to delivering information about the management’s
expectations of the employee behaviour and performance as well. It
can also be making the employees familiar with their supervisor,
colleagues and subordinates or briefing them about their roles and
responsibilities in the firm.
Deciding the types of the orientation programme
Based on the enterprise policies and previous practices, the HR
department may decide the type of orientation programme –
general or job-specific. There are a number of determinants with
must be kept in mind while deciding the type of programme. This
may cover:

▪ Objectives of the programme

▪ Nature of information required
▪ Funding available to support the programme
If the HR department decides to organise several programmes for
different categories of employees. In such cases, they must ensure
the collection of relevant information about different employees
with regard to their positions and departments.

Further, if the department wants to conduct job-specific

programmes, then it should develop separate programmes for both
managerial or non-managerial level and technical and non-technical
personnel.
Selecting the Delivery Mode
At this step, the organization needs to choose among various
delivery modes, the best mode to communicate information to the
participants. For this, the HR department of the enterprise considers
a number of factors. these factors are:L

▪ Total number of participants

▪ Nature of information to be conveyed
▪ Availability of infrastructure
▪ Category of participants
Further, there are three modes or methods of delivery of
information which include:

1. Classroom-based orientation,
2. Multimedia-based orientation and
3. On-the-job-orientation.
For better understanding, the company must provide brochures and
instruction manuals to the participants.
Collecting the feedback of participants
Because these programmes are organized frequently in an
enterprise, it is vital to cross-check the effectiveness of the
programme. But the question arises – How we could check the
effectiveness of the programmes?

Well, the answer is quite simple, the organization can take feedback
from the participants about their views on the programme,
loopholes and suggestions for improvement. This will greatly depend
on the participant’s level of satisfaction. And on the basis of this
satisfaction level, the orientation programmes to be conducted in
future can be modified accordingly.

Ideal Orientation Programme

An ideal orientation programme has the following features:

▪ Clear-cut objectives
▪ Ascertains the roles of departments and personnel
▪ Determines what information about the new employees is
required?
▪ Uses appropriate mode and channel of delivering information.
▪ Creates a healthy work environment for new hires.
▪ Looks for constant review and feedback to make
improvements.
Problems in Orientation Programme

▪ The essence of this programme is to provide information. So,

the new hires should not be overloaded with lots of
information. This is because they won’t be able to grasp it all
at once.
▪ A very formal and rigid orientation programme will cause
boredom in the participants after a point of time. So, it is
important to make the session more lively and interactive, so
 that they can actively participate, ask questions and feel at
ease rather than keeping silent and listening all the time.
▪ The lack of proper time and training for the facilitators
reduces the effectiveness of the programme. For an
orientation to be successful organization should ensure that
the facilitators have complete knowledge and experience
regarding how to handle the anxiety and nervousness of the
new hires.
▪ A programme that is not well framed and executed may turn
out as a failure. It may also create a bad impression in the mind
of new joiners regarding the efficiency of the enterprise. This
will result in increased employee turnover. One should be
precautious while framing the programme and implementing it.
▪ The grasping power of all the hires is not the same, because
some learn and understand faster than others. While some
may be able to understand things by just listening, others
might need video presentations or demos to understand.
▪ A proper evaluation and follow-up are very crucial to the
success of the orientation programme. If the organization does
not take feedback from the participants, then it may end up
following the same orientation programme year after year
which may at one point of time, prove ineffective.

TRAINING PROCESS- ANALYSING THE TRAINING NEED AND

DESIGNING THE THE TRAINING PROGRAM-

TRAINING NEEds analysis is a systematic process of identifying which

kind of training is required and providing the details related to
training implementation. It is also known as a tool to identify the
new skills, knowledge, and attitudes that employees need to acquire
in order to improve performance.
TRAINing Needs Analysis (TNA) helps organizations to find out the gap
in terms of skills and training in their existing employees to perform the
current and upcoming Jobs efficiently. The Training Manager uses the
Analysis very carefully to design the right Training program to meet the
the skill and training requirements of the employees to enhance
productively and ultimately achieve the goals and objectives set by the
organization.skill and training requirements of the employees to enhance
productively and ultimately achieve the goals and objectives set by the
organization.
What is Training Needs Analysis Definition in HRM
The term training needs analysis is often referred to as learning needs analysis in the
human resource department. The training needs to reflect that there are lots of ways
to perform a job and thus a huge opportunity of learning to work. The analysis is all
about the gap in the skills and knowledge and how the HRM department can help to
bridge the gap.
HRM department always puts focuses on the idea that a constant learning process is
good for employees. It keeps their skills updated and improves their performance.
The training needs analysis implies the analysis of skill improvement required to
perform the current or future job with great excellence.

Role of Training Needs Analysis

Every leader or manager of the organization wants their employee to perform better
and reach their optimum. In order to achieve the set goals and improve the
productivity of the organization, it is important that employees have full capabilities
and competencies to perform their assigned job.
Fundamentally the role of training needs analysis in HRM is to understand the
difference between the current and desired performance of the employee and
provide information about-

o Which employee needs training?

o What kind of training is required?
o How a company can design an effective training program for such employees?
o What will be the impact of this training on the performance of the employee?
o What will be the cost and resource requirement of these training programs?

Requirement of Training Needs Analysis

Training needs analysis is always considered a first step toward helping an employee
to improve their output at work. The requirement of training needs analysis is to
 o Understand the performance improvement needed by the organization
o To relate this performance improvement with required skills, capabilities, and
competencies
o To figure out the exact course work or skill set training program employees need
to attend
o To design the appropriate training program to bridge the gap between the present
productivity of the organization and desired output.
What is Training Needs Analysis Methods and Process?

The method of training needs analysis is selected based on the job type of the
employee and the analysis that has to be carried out to understand the skill gaps.
Here are a few popular training need analysis methods used in the corporate world:

1. Direct observation- In different working situations the training managers observe the working

style of the employees. With the help of this observation, the managers get information about the

performance gaps. The observation includes watching over the technical methodology followed to

perform the job, the functional aspects of the job, and the behavioral aspects of the employee. It

provides both qualitative and quantitative feedback about the current performance of the

employee.

2. Interviews- It is a face-to-face conversation about the way an employee performs the job. It is an

effective way to collect information about output gaps by talking with each employee or a team. It

can be a formal or informal setting of the interview. The interview can be conducted in person or

through virtual means.

3. Focus groups- It is a brainstorming process to understand the skill gaps among the employee.

The employees working in the organization are encouraged to talk and discuss the ways to improve

their work performance. This conversation is closely observed by analyzed by the training manager

to understand the training requirement in the organization.

4. Assessments/surveys- Surveys are an effective and simple way to identify the performance

deficiencies in a particular department. A well-designed questionnaire is circulated among

employees to understand the training needs of the employees. The questionnaire can consist of a

combination of open-ended and closed-ended questions along with some ranking and projective

questions. To improve the credibility of the survey the employees are allowed to submit the

answers anonymously.
 5. Customer Feedback- In most of the service industry performance deficiencies are identified using

customer feedback. The direct feedback from the customer indicates the specific work area which

needs improvement.

6. Others: There are a few other methods of training that need analysis such as consolation with the

persons working in a key position in the organization, by reviewing relevant literature of the work

area, with the use of reports, records, and work samples.

Training Needs Analysis Process

There are different stages of training needs analysis that are used by the organization
based on the job profile of the employees. However, there is a fixed process that is
followed in all types of training needs analysis. Here is 4 steps process of training
needs analysis:

Step 1- Performance Gap Analysis: Here the current and desired operation
results of the employee performance are compared to identify the performance
gaps. These performance gaps can also be termed as the difference between the
required and actual productivity of the organization.
Step 2- Root Cause Analysis: Root cause analysis is a way to determine the basic
issue behind the performance gaps. The issues are classified into 5 categories as
skill, resources, incentives, motivation, and information such as feedback. Using
rood cause analysis it is identified which area is leading to a lack of performance
and which area needs improvement.
Step 3- Needs Analysis: A detailed analysis is carried out to design and
implement the appropriate intervention to resolve the performance issues. Based
on the categories identified in the root cause analysis a specific need for
improvement is addressed in this step. This analysis includes analysis of the
audience of training, job analysis, task analysis, environment analysis, and cost-
benefit analysis.
Step 4- Recommendations: In this step, an appropriate training solution is
proposed. It identifies the right kind of training program that an organization
should run to improve the overall work productivity.
Advantages and disadvantages of training needs analysis
Every process and tool used in human resource management has some positive and
negative points. Here are some benefits and issues related to training that need
analysis-

Advantages of Training Needs Analysis

1. It determines the population which needs the training most in order to perform well in the

organization.

2. It determines what kind of training is required in terms of skills, knowledge, abilities, competency,

and behavior of the employee.

3. It helps the management to direct resources to regions of greatest priority of training.

4. It helps employees and organizations to improve work productivity

5. It helps the company to improve their quality of services and thus helps in customer retention.

Disadvantages of Training Needs Analysis

1. Training need analysis can be a time-consuming process as it includes a lot of assessments and

surveys.

2. Training need analysis can be a costly affair for the company as often tired party is hired to conduct

the training need analysis

3. The low response rate of the employees to the internal surveys can have a negative impact on the

effectiveness of the training need analysis

4. Many times when the long process of training needs analysis is completed the management is no

longer looking to fulfill the same business goals.

5. Employees often hesitate to provide an honest response on self-assessment which can affect the

result of training needs analysis.

UNIT 3 CONT….. WITH RAM SIR PDF

UNIT 5
EMPLOYEE RELATIONS: CONCEPT AND TYPES
OF EMPLOYMENT RELATIONSHIP
What are Employee Relations?
Employee relations can be defined as the relationships between
employees of the company. These relationships can be a manager
to subordinate or peer to peer. It is the job of HR to improve
employee relations within the organization through proactive
policies and conflict resolution.

The best way to improve employee relations at work is to ensure

that employees are considered stakeholders in the success of the
company. If management and HR treat employees merely as the
means to an end, there is a high probability of employees being
disengaged.

What are the Different Types of

Employee Relations?
Vertical Employee Relations
To put it simply, both vertical and horizontal employee relations
are hierarchical in nature. This means that the manager and
employee relationship is vertical.

An employee-manager relationship is unique because there are

certain limitations to such a relationship. Managers must try to be
empathetic, communicative, appreciative and friendly with their
employees. Managers need to understand that they don’t need to
be chase validation from their subordinates but they must be open
to new ideas and change. There is a fine line that needs to be toed
in an ideal boss-employee relationship.

Horizontal Employee Relations

Internal employee relations are the relationships between team
members or employees on the same level within the company.
Great horizontal employee relations examples are the relationships
between those who indulge in casual water cooler talks. These
employees may not be a part of the same team or even the same
vertical but they have strong relationships due to their casual
conversations a few times a day.

Horizontal employee relationships can be mapped by proactive HR

professionals to find out influential employees within the
organization who may not be placed very high in the hierarchy.
What is Employee Relationship
Management?
Employee relationship management is defined as the process to
manage employee relations. This includes the relationship of the
employee with the company, peers, upper management and
immediate manager.

The importance of employee relationship management lies in the

importance of employee relations themselves.

What are the 5 Pillars of Employee

Relations?
Organizational Culture
Organizational culture is a collection of experiences, expectations
and values. Company culture is essentially based on a set of both
written and unwritten rules that have been developed over a period
of time and are now considered normal.

Although this definition makes out organizational cult ure to be

some nebulous rules enshrined in the company handbook, the
reality is quite different. Organizational culture defines the
appropriate behaviour for all employees. It also affects the way
people interact with one another, clients and other externa l
stakeholders.

HR must constantly redefine and reiterate what the organizational

culture of the company is and why it must be followed. It is the
basis of successful employee relations in any company.

Employee Engagement
Employee engagement and employee relations are closely
interconnected. Disengaged employees will not care about building
good relationships with their managers or peers. Therefore all
employee engagement activities must also be run with the end goal
of bettering employee relations.

Conflict Resolution
Conflicts are the results of opposing viewpoints. However,
opposing viewpoints are integral for the development and success
of a company. So where do we draw the line? The involvement of
HR in conflicts should be subject to their invitation fo r mediation.
Often, both parties emerge stronger by resolving conflicts
personally.

Workplace Investigations
Workplace investigations are the big brother of conflict resolution.
In cases where there may be a lot of hearsay involved it makes
sense to interview witnesses who were actually there. Although
these investigations may be considered disruptive and costly they
are important to prevent the deterioration of employee relations in
certain situations.

Disciplinary Actions
Organizations must make sure that expectations are set and
employees know what they’re supposed to do. Employees also need
to be clear about all aspects of the disciplinary policy. The
disciplinary actions must always be commensurate to the mistakes
done.

Benefits of Employee Relationship

Management
Improved Employee Loyalty
According to OfficeVibe, 50% of employees with a best friend at
work felt a strong connection with their company. When employee
relations are strong it leads to better employee retention and
satisfaction.
Improvement in Productivity
According to a study conducted by a team of MIT researchers, idle
chit-chat might actually be valuable to productivity. The
researchers found that even small increases in social cohesiveness
lead to large gains in productivity.
Healthy Debate between Employees and
Managers
No one likes a Yes-person at work. Without healthy debate, there is
no way for innovative ideas to come to the forefront and create
innovative solutions.

Work-life Integration
What is the Role of Employee
Relations in HR?
In larger companies, Employee Relationship Management is a
specific function within HR. Some responsibilities of an Employee
Relationship Manager are:

Policy and Culture Interpretation During

Onboarding
Onboarding is a particularly tricky concept in the current scenario.
Hiring is hard enough. However, for every new hire, the ERM must
ensure that they are able to understand what the expectations are
with regards to both conduct and performance.

Putting Out Fires

Every time that there is a conflict in the workplace that needs HR
to step in, an Employee Relationship Manager does their part. All
problems ranging from workplace discrimina tion to small tiffs
come knocking on their door.

Arbitration with Unions

The unionization of employees is becoming increasingly common.
Although traditionally unions were limited to blue -collar workers,
white-collar employees are also unionizing.

The labour unions specialist is generally an employee relations

manager who must handle all agreements, mediations and
arbitrations with the union representatives.

Monitoring Performance Issues and Taking

Action
Although this is an uncomfortable conversation to hav e, employee
performance issues need to be monitored to ensure that they don’t
become major roadblocks. An ERM needs to coordinate with
reporting managers and make sure that corrective actions are
proposed.

Methods to Improve Employee

Relations
Encourage Casual Social Interactions
HR can often look down upon casual water cooler conversation
considering it petty gossip however areas like this can help people
from different departments engage with one another
Provide Modes of Communication
Emails are often the only mode of formal internal communications
within organizations. Obviously, with the rise of Slack and MS
Teams, things are slowly changing. But it is the job of an ERM to
make channels of communication where employees can lighten up.

One on One Meetings with Managers

-
Employee relations is the practice of managing the relationship between an
employer and its employees. It encompasses a wide range of activities, from
recruiting and hiring to performance management and employee engagement. The
goal of employee relations is to create a positive and productive work environment
where employees feel valued and respected.

There are many different types of employment relationships, each with its own set of
challenges and opportunities. Some common types of employment relationships
include:

• Full-time employees: Full-time employees are typically paid a salary and have
benefits such as health insurance and paid vacation. They are expected to
work a set number of hours per week and are typically subject to a
performance review process.
• Part-time employees: Part-time employees work fewer hours per week than
full-time employees. They may be paid an hourly wage or a salary. Part-time
employees may not be eligible for benefits such as health insurance and paid
vacation.
• Temporary employees: Temporary employees are hired for a specific period
of time, such as a few weeks or a few months. They are typically paid an
hourly wage and are not eligible for benefits.
• Contract employees: Contract employees are hired to work on a specific
project or task. They are typically paid a set fee for their work and are not
eligible for benefits.

The type of employment relationship that an employer chooses will depend on the
specific needs of the business. For example, a business that needs to staff a
temporary project may choose to hire contract employees. A business that needs to
increase its workforce may choose to hire full-time employees.

Employee relations is an important part of any business. By creating a positive and

productive work environment, employers can attract and retain top talent, improve
employee morale, and boost productivity.
INDUSTRIAL RELATIONS

• Industrialrelations is that field of study which analyses the relationship

among the management and the employees of an organization at the
workplace and also provides a mechanism to settle down the various industrial
disputes. • It is made up of the following two terms: • ‘Industry’ can be viewed
as an economic activity (i.e., manufacturing, producing or processing of goods
or services) which is performed by a group of individuals. • ‘Relations’ here
refers to the connection and communication which pertains between the
employer and the employees within a workplace

Scope of Industrial Relations •

When we talk about industrial relations, it covers a vast arena,
including all kinds of formal relationships existing in an organization.
• The scope of industrial relations can be briefly classified into the
following four dimensions: 1. Employer – Employee Relations 2.
Group Relations 3. Labour Relations 4. Public Relations
1]Employer – Employee Relations
• To maintain sound relations, the employer must treat the
employees fairly and
should value their efforts.
• Also adopting the various human resource strategies like
employee relations
program, performance-based promotions and even making the
productive
employees the stakeholders of the company

2]Group Relations • The interactions and communication between

the workers belonging to different workgroups are studied under
group relations.

3]Labour Relations • In an organization, the relationship shared by

the managers and the workers is termed as labour relations. It
includes their behaviour, thoughts, actions and perception against
each other.

4] Public Relations • It is also termed as community relations. The

interaction and relationship of the organization (i.e., its owner,
management and employees) with the society or external bodies is
termed as public relations. For long-term existence in the business,
every organization needs to maintain cordial public ties.

Objectives of Industrial Relations

• Handling Grievance: Industrial relations aim to maintain cordial
relationship
between the management and the employees by resolving the
disputes and
setting up a mechanism to address the grievances of both the
parties.
• Mental Revolution: It emphasizes on transforming the way of
thinking of both the
management and the workers. The employer must value the
worker’s
contribution towards the organization, and at the same time, the
employees
must respect the authority of the management.
• Employees’ Rights Protection: Under industrial relations, various
acts (like in India
National Labor Relations Act) and associations were formed to
safeguard the
rights and interests of the employees (irrespective of their
membership of the
labour union).
• Contract Interpretation: Industrial relations emphasizes on
providing proper
training to the supervisors and the managers on the labour law
contracts to
clarify any misunderstanding.
• Boosting Morale: The motivated workforce is the most efficient
resource of the
organization. Therefore, industrial relations emphasizes on building
employee’s
confidence and boosting their morale to perform better than
before.
• Collective Bargaining: The worker’s representative and the
management put up
their proposals in front of each other and negotiates over the same.
This is to
reach a mutual decision which is written down in a collective
bargaining
agreement.
• Increasing Productivity: Industrial relations aims at improving the
efficiency and

productivity of the organization by ensuring employees’ longterm

retention and
minimizing the rate of their absenteeism.

Components of Industrial Relations

Approaches Industrial Relations
• Systems Approach
• Unitary Approach
• Pluralist Approach
• Marxist Approach
• Sociological Approach
• Gandhian Approach
• Psychological Approach
• Human Relations Approach
1. Pluralist Approach: The pluralist approach recognizes that conflicts of
interest exist between employers and employees. It emphasizes the
 importance of independent employee representation through trade
unions or employee associations. This approach promotes collective
bargaining, dispute resolution through third-party interventions (e.g.,
arbitrators, mediators), and the establishment of grievance
procedures. It seeks to balance power and ensure a fair distribution
of rights, responsibilities, and rewards.
2. Unitarist Approach: The unitarist approach assumes that
organizations function as unified entities with a shared goal. It
focuses on achieving harmonious relations between employers and
employees by emphasizing mutual cooperation and common
interests. The unitarist approach advocates for open communication,
employee involvement, and a focus on organizational goals. It
downplays the role of trade unions and may view conflicts as signs of
dysfunction rather than inherent in the employment relationship.
3. Radical Approach: The radical approach takes a critical view of the
capitalist system and sees industrial relations as a reflection of
broader power imbalances in society. It emphasizes the inherent
conflict of interest between labor and capital. This approach
advocates for worker empowerment, challenging the existing power
structures, and seeking fundamental changes to the capitalist system.
It may promote collective action, including strikes and protests, to
advance workers' rights and social justice.
4. Human Resource (HR) Approach: The HR approach, also known as the
integrative approach, seeks to align organizational goals with the
interests and aspirations of employees. It emphasizes employee
involvement, empowerment, and the recognition of employees as
valuable assets. The HR approach focuses on creating a positive work
environment, promoting employee development and satisfaction,
and integrating HR practices (such as recruitment, training,
performance management) with overall organizational strategy.
5. Systems Approach: The systems approach views industrial relations as
part of a broader socio-economic system. It recognizes the
interdependencies between organizations, employees, unions,
government, and other stakeholders. This approach emphasizes the
need to consider the external environment, social factors, and the
impact of industrial relations on overall societal well-being. It
recognizes that changes in one element of the system can have ripple
effects throughout the system.
Collective bargaining-

Collective bargaining is the process by which a group of

employees negotiates with their employer on matters
related to their pay, working conditions, benefits, and
other compensation-related factors.

Typically, this negotiation is conducted through a trade

union that represents its members, with union
representatives negotiating on their behalf. The
negotiation may occur at the level of an individual
business or may involve an entire industry, such as when
a retail trade union like USDAW negotiates with major
retailers like Walmart, Target, and Costco to establish
industry-wide agreements regarding minimum wages,
benefits, and working conditions for retail workers.

What Happens in Collective

Bargaining

1. Preparing for Negotiations

This may cover a number of areas that its members are most concerned with. It
may include a survey of members or several focus groups.

Simply put, the trade union and negotiators look to find out the key points by which
they are to negotiate on.
For instance, the lack of local canteen may be an issue, or alternatively, workers
want to get paid extra to work Sundays. Whatever the key issues, the first stage
would be to compile these ready for the negotiation.

2. Propose Key Demands

Once the union members’ key issues have been identified, they are compiled into
an official document known as the “key demands.” These demands may include
“red lines” which the negotiation must start with, such as wages or key benefits to
the employees. If these demands are not met, negotiations may fall apart.

3. Negotiation
The negotiation process may involve sit-down meetings, email exchanges, or phone
calls where details of the deal are discussed. During this stage, both sides may
request the inclusion or exclusion of certain aspects of the deal.

In addition, both parties may take time to gather information and assess the
feasibility of specific demands or proposals. For instance, if the employees demand
a 10% increase in their salary, the employer will have to evaluate whether it is
financially feasible.

The negotiation process may continue in a circular fashion until a mutually

agreeable deal is reached, or negotiations may break down entirely.

. Administration of Agreement
After an agreement is reached, the union will continue to monitor the
implementation of the agreement and hold the employer accountable. This involves
ensuring that the terms of the agreement are being met, such as employees
receiving the agreed-upon minimum salary or the construction of the requested
canteen being completed on time and to a satisfactory standard.

Types of Collective Bargaining

When discussing collective bargaining, it is important to distinguish between the
process and the outcome, which is known as a collective agreement.

There are different types of collective agreements that can result from bargaining,
including single union deals, procedural agreements, substantive agreements, and
partnership agreements. These types refer to the characteristics of the agreement
itself rather than the bargaining process.

1. Distributive Bargaining
Distributive bargaining involves negotiation by which one party gains at the expense
of another, often relating to the redistribution of income through higher wages,
bonuses, or other financial benefits.

Trade unions need to have market power to win negotiations, as employers want to
pay as little as possible. The larger the percentage of employees represented by a
union, the more power the union has.

2. Integrative Bargaining
Integrative bargaining is a process where both sides aim to benefit, creating a ‘win-
win’ situation. Both parties bring together a list of demands and an agreement is
reached that benefits both sides.

This process involves both parties considering the others’ point of view, needs,
wants, fears, and concerns. As a result, both parties gain or lose by the same
amount. For example, a union may advocate for greater staff training, which may
cost the business more initially but result in greater productivity in the long run.

3. Productivity Bargaining
Productivity bargaining involves both parties negotiating around productivity and
pay. So unions may suggest that higher salaries would boost productivity. However,
this is unknown to the business. So target-orientated bonuses may be suggested, or
new ways of improving the process.

Unions may suggest new ways of organising the worker force than may increase
productivity and therefore create value to the firm. In turn, employers would look to
increase employees wages as a result.

4. Composite Bargaining
Composite bargaining refers to a negotiation that focuses on a number of elements
that are not related to pay. They are generally related to employee welfare and job
security. For instance, it covers factors such as working conditions, policies,
recruitment, and disciplinary processes.
The aim is to ensure a mutually beneficial long-term relationship between the
employer and employee. It does this by highlighting issues that employees may
have, which may impact their long-term future at the company.

Or

Collective bargaining is a process in which employees, through their union, negotiate

with their employer over wages, benefits, working conditions, and other terms of
employment. It is a fundamental right protected by the National Labor Relations Act
(NLRA).

In the context of human resources management (HRM), collective bargaining can

play a number of important roles. First, it can help to ensure that employees are
treated fairly and that their interests are represented in the workplace. Second, it can
help to promote a more cooperative and productive work environment. Third, it can
help to resolve disputes between employees and employers in a constructive
manner.

There are a number of different approaches to collective bargaining. In some cases,

the employer and the union may be able to reach an agreement without the need for
a strike or lockout. In other cases, the parties may need to engage in a more
adversarial process, with each side trying to get the best possible deal for its
constituents.

Regardless of the approach taken, collective bargaining is a complex and

challenging process. It requires both parties to be willing to compromise and to work
together in order to reach an agreement that is fair to all involved.

Here are some of the benefits of collective bargaining for HRM:

• Improved employee relations: Collective bargaining can help to improve

employee relations by providing a forum for employees to voice their concerns
and to negotiate for better working conditions.
• Increased productivity: When employees feel that they are being treated fairly
and that their interests are being represented, they are more likely to be
productive.
• Reduced turnover: Employees who are unionized are less likely to leave their
jobs, which can save employers money on recruiting and training costs.
 • Improved morale: Collective bargaining can help to improve morale by giving
employees a sense of ownership in their workplace and a feeling that they are
part of a team.

Here are some of the challenges of collective bargaining for HRM:

• Increased costs: Collective bargaining can lead to increased costs for

employers, as they may need to pay higher wages, benefits, and other
expenses.
• Reduced flexibility: Collective bargaining agreements can limit an employer's
ability to make changes to work rules or procedures.
• Increased conflict: Collective bargaining can lead to conflict between
employees and employers, which can disrupt the workplace and make it
difficult to operate efficiently.

Overall, collective bargaining can be a valuable tool for HRM. However, it is

important to weigh the costs and benefits carefully before deciding whether or not to
engage in collective bargaining.

PSYCHOLOGICAL CONTRACT-
The psychological contract is an unwritten set of expectations that employees have
of their employer and vice versa. It is based on the idea that both parties make
implicit promises to each other, such as the employer promising to provide a safe
and supportive work environment and the employee promising to be loyal and
hardworking.

The psychological contract is important in HR management because it can have a

significant impact on employee motivation, satisfaction, and productivity. When
employees feel that their expectations are being met, they are more likely to be
engaged and productive. However, when employees feel that their expectations are
not being met, they may become disengaged and less productive.

There are a number of things that HR managers can do to manage the psychological
contract effectively. These include:

• Communicating with employees about their expectations: HR managers

should regularly communicate with employees about their expectations and
 how they can meet them. This can be done through one-on-one meetings,
team meetings, or company newsletters.
• Providing opportunities for employees to develop their skills: HR managers
can help employees to develop their skills and knowledge by providing them
with training and development opportunities. This will help employees to feel
more confident in their abilities and more likely to stay with the company.
• Recognizing and rewarding employee contributions: HR managers should
recognize and reward employee contributions, both big and small. This will
help employees to feel valued and appreciated, and it will motivate them to
continue to perform at a high level.

By managing the psychological contract effectively, HR managers can create a

workplace where employees are motivated, satisfied, and productive.

Here are some of the benefits of managing the psychological contract effectively:

• Increased employee motivation: When employees feel that their expectations

are being met, they are more likely to be motivated to do their jobs well.
• Improved employee satisfaction: When employees feel that they are being
treated fairly and that their contributions are valued, they are more likely to be
satisfied with their jobs.
• Increased employee productivity: When employees are motivated and
satisfied, they are more likely to be productive and contribute to the success
of the organization.

Here are some of the challenges of managing the psychological contract effectively:

• Changing employee expectations: Employee expectations are constantly

changing, so it can be difficult for HR managers to keep up.
• Competition from other employers: Other employers may offer employees
better pay, benefits, or opportunities for development, which can make it
difficult for HR managers to keep their employees satisfied.
• Unrealistic employee expectations: Some employees may have unrealistic
expectations about what their employer can and will provide for them. This
can lead to disappointment and frustration on both sides.

Overall, managing the psychological contract is an important part of HR

management. By understanding the psychological contract and taking steps to
manage it effectively, HR managers can create a workplace where employees are
motivated, satisfied, and productive.

ETHICAL BEHAVIOUR AT WORK-

Ethical behavior at work is important for a number of reasons. It can help to create a
more positive and productive work environment, it can improve employee morale,
and it can protect the organization from legal liability.

There are a number of things that HR managers can do to promote ethical behavior
in the workplace. These include:

• Creating a code of ethics: A code of ethics is a document that outlines the

organization's values and expectations for employee behavior. It should be
clear, concise, and easy to understand.
• Training employees on the code of ethics: Employees should be trained on
the code of ethics and how it applies to their work. This training should be
ongoing and should be reinforced through regular communication.
• Encouraging employees to report unethical behavior: Employees should feel
comfortable reporting unethical behavior without fear of retaliation. The
organization should have a system in place for employees to report unethical
behavior anonymously.
• Taking disciplinary action for unethical behavior: When employees violate the
code of ethics, they should be disciplined appropriately. The discipline should
be fair and should be consistent with the severity of the violation.

By taking these steps, HR managers can help to create a workplace where ethical
behavior is the norm.

Here are some of the benefits of ethical behavior at work:

• Increased productivity: When employees feel that they are working in an

ethical environment, they are more likely to be productive.
• Improved employee morale: When employees feel that they are treated with
respect and fairness, they are more likely to be happy at work.
 • Reduced legal liability: When organizations have clear policies and
procedures in place and take steps to prevent unethical behavior, they are
less likely to be sued.

Overall, ethical behavior is important for both employees and organizations. By

promoting ethical behavior in the workplace, HR managers can help to create a more
positive, productive, and safe environment for everyone.

Here are some specific examples of ethical behavior in the workplace:

• Treating all employees with respect, regardless of their position or

background.
• Being honest and transparent in all dealings with employees.
• Avoiding conflicts of interest.
• Reporting any unethical behavior that you see or hear about.

By following these guidelines, you can help to create a more ethical workplace for
everyone.

OR
What is Ethics in HRM
Ethics in HRM is whereby human resource professionals or business managers
help an organization embed and uphold its set values regardless of levels. This is
so that they can be able to build, sustain, and improve employee trust and
relations. For instance, encouraging accountability is one of the elements that
will prevent arising of workplace issues in the first place.

Ethical Issues in Human Resource Management

As mentioned earlier, embracing ethics in HR is crucial for successful business
operations. However, remember that ethical issues are challenging to handle,
and the best way to avoid them is to understand what they are and what to do
to prevent their occurrence. Below are some of the ethical issues to note.

1. Unfair employee benefits and compensation plans

2. Discriminatory practices based on gender, race, disability, age, etc.

3. Biased recruitment practices whereby a human resource manager favors

recommended individuals or those with personal relations.

4. Interfering with employees’ personal lives that they do not intend to disclose.
This can include religious beliefs, political preferences, etc.

Role of Ethics in Human Resource Management

It is important that you understand the role of ethics in human resources to
effectively run a business. Besides encouraging employee collaboration and
accountability, here are the essential functions of ethics in human resource
management.

1. Abide by Employment Law

HR ethics helps you conduct business in line with the employment law due to
fair employment practices. For instance, policies related to minimum wage and
employee overtime pay show that your company compensates employees in
accordance with the law. In addition, policies against discrimination attract
applicants from diverse groups, thus indicating that you engage in
fair employment practices.

2. Protecting Your Employer Brand/Reputation

Conducting business unethically can ruin your reputation since word will spread
everywhere about your misdeeds. These can include sexual harassment,
discrimination, unfair employment policies, etc. As a result, not only will you be
able to lose important clients, but attracting quality talent for various positions
will be a challenge. That being said, build your reputation with the best HR ethics
activities and keep your business ahead of the competition.

3. Promotes Employee Retention

HR ethics and compliance in the organization promote trust among the
employees. As a result, your workers will be loyal and strive to impress you by
putting more effort into work. In addition, they will work in your organization for
more extended periods, thus gaining more experience that contributes to
increased production. More importantly, hiring and recruiting costs will be
reduced.

4. Better Decision Making

Business ethics in human resource management encourages collaboration and
accountability. As a result, employees will be able to be accountable for their
actions, allowing you to easily make the best organizational decisions. What’s
more, workplace conflicts that tend to occur more frequently will also reduce
since no employee will want to be in the spotlight as a troublemaker at all times.

Ethics in Human Resource Management Examples

The role of HR in promoting ethics is to encourage the best code of ethics and
lead by example for smooth business operations. Note that there are different
types of ethics in HRM, and below, we have shared some of the significant ones
to help you effectively manage your business.

• Guide, encourage, and mentor your employees to be on their best workplace behavior.

• Be respectful and always talk to them privately whenever they conduct themselves

unethically.

• Keep communication as honest and transparent as possible to gain your workers’ trust.

• Encourage social responsibility.

• Do not take advantage of your position for any gain whatsoever, whether financial,

personal, or material. Simply put, avoid being biased.

Conclusion

A Code of ethics can help you improve your business performance and attract
quality talent. For this reason, you should include HR ethics activities in your
daily business operations. The best element about ethics in HRM is that you
have a lot to gain rather than lose. These include good reputation, employee
loyalty, and most importantly, you get to save money that could have been used
in multiple recruitments. That being said, take advantage of the different types
of ethics in HRM and see the difference.

EMPLOYEE WELL BEING-

Employee wellbeing is a critical component of a healthy working
environment and organization. Companies that promote wellbeing make
it easier for employees to manage stress levels while also maintaining a
positive and productive environment. Wellbeing can refer to mental and
physical health, as well as more complex things such as satisfaction and
engagement levels. In this article, we’ll explain what employee wellbeing is,
why it matters, and how to create the best employee wellbeing program in
a workplace using a project management solution.

What is employee wellbeing?

Employee wellbeing is defined as the overall mental, physical, emotional,
and economic health of your employees. It’s influenced by various factors
such as their relationships with co-workers, the decisions they make, and
the tools and resources they have access to. Hours, pay, and workplace
safety also have a significant impact on employee wellbeing.

While it will vary from person to person, employee wellbeing should

average out to a level that allows for a productive and healthy workplace.
Outside factors contribute to employee wellbeing too. Stress around
issues such as housing, health, and family all play a role in performance at
work. However, employers can acknowledge they have no control over
what takes place after hours while still taking responsibility for what they
can do for their employees.
Employee well-being refers to the physical, mental, and emotional health of
employees within an organization. It encompasses various factors that contribute to
an employee's overall satisfaction, engagement, and productivity at work.
Recognizing the importance of employee well-being, many organizations have
started prioritizing initiatives and programs aimed at promoting a healthy and
supportive work environment.

Here are some key aspects that contribute to employee well-being:

1. Physical Health: Encouraging a healthy lifestyle by providing access to

wellness programs, gym facilities, healthy food options, and promoting
regular exercise can improve employees' physical well-being. Additionally,
offering flexible work arrangements or remote work options can help
employees balance their personal and professional lives, reducing stress and
burnout.
2. Mental and Emotional Health: Promoting a positive work culture and
addressing mental health issues is vital for employee well-being. Employers
can provide resources such as counseling services, mental health awareness
programs, stress management workshops, and encourage open
communication channels to support employees facing challenges.
3. Work-Life Balance: Striking a balance between work and personal life is crucial
for employee well-being. Organizations can implement policies that promote
flexible work hours, remote work options, and encourage employees to take
regular breaks and vacations to avoid burnout.
4. Recognition and Appreciation: Recognizing and appreciating employees'
contributions and achievements boosts their morale and sense of belonging.
Regular feedback, performance evaluations, rewards, and recognition
programs can help foster a positive work environment and improve overall
well-being.
5. Professional Development: Supporting employees' professional growth and
development not only enhances their skills but also increases their job
satisfaction. Providing opportunities for training, career advancement, and
mentorship programs can contribute to employees' sense of fulfillment and
well-being.
6. Social Connections: Building a strong sense of community and fostering
positive relationships among employees is essential for their well-being.
Encouraging teamwork, organizing team-building activities, and promoting a
supportive work culture where employees feel connected and valued can
enhance their overall happiness and job satisfaction.
7. Work Environment: Creating a safe and comfortable physical work
environment is crucial for employee well-being. This includes factors such as
ergonomic workstations, proper lighting, adequate ventilation, and measures
to ensure the physical safety and security of employees.
Organizations that prioritize employee well-being benefit from higher levels of
employee engagement, satisfaction, and productivity. By investing in initiatives that
support their employees' well-being, employers can create a positive work
environment where individuals thrive both personally and professionally.