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1. What is an Organization and what is Management
2. Understanding Personnel Management & HRM functions
3. Comparison between Personnel Management and HRM
4. Manpower Planning and Job Analysis
5. Recruitment and Induction
6. Performance Appraisal
7. Training and Development
8. Compensation and Reward Management
9. Career Planning and Succession Planning
10. Work Motivation
11. Human Resources Information System (HRIS)
12. Quality of Work Life
13. Organizational Development
14. Management of Organizational Change
15. HRM Strategies for long-term growth
16. Productivity and HRM
 :ooks to be Read for Human Resource Management

1. Human Resource Management- P.Subba Rao

2. Personnel Management- C. :.Mammoria
3. Human Resource Management-Dessler (Prentice Hall)
4. Personnel/ Human Resource Management-DeCenzo & Robbins(PHI)
5. Human Resource Management- D.K. :hattacharya(Excel)
6. Human Resources Management- VSP Rao (Excel)
7. Managing Human Resource-Gomez(PHI)
8. Personnel Management-Edwin Flippo
9. Human Resource Management- :ohlander & Snell
10. Organizational Development- French & :ell (For O.D.only)
11. Managing Human Resources- Monappa
 ÷


 


  
1.WHAT IS AN ORGANIZATION?
(a) What are its features?

(b) Which is its core function?

(c ) How does this core function perform its activities?
(d) What is the essence of the core function?
(e) What resources does the core function utilize?
(f) Which resource is the most important?
(g) Does the Organization have a context? What is it?
  

Main task of Management is getting things done through and with people
Main job of Management is Economic Performance:
The sub-functions of Management are:
1. Managing the :usiness
2. Managing Managers
3. Managing Worker and Work
4. Managing Time

Definition of Management:
³Management is the process of designing and maintaining an
environment in which individuals, working together in groups,
efficiently accomplish selected aims.´
  

The various dimensions of Management include:

‡ Managers carry out the functions of Planning, Organizing, Staffing,

Leading, and Controlling.
‡ Management applies to any form of organization
‡ It applies to managers at all organizational levels
‡ The aim of all managers is the same: to create a surplus
‡ Managing is concerned with productivity; this implies effectiveness
and efficiency.
 MANAGEMENT FUNCTIONS
a  function determine an organization¶s objectives
and establish the appropriate strategies for achieving those
objectives

a  function creates a structure of task and authority

relationships that serves this purpose

a  function requires three elements

(a) Established standards of performance
(b) Information that indicates deviations between actual and
the established standards
(c )Action to correct performance that does not meet the
standards
 MANAGEMENT FUNCTIONS
‡ ± function is the management of the human resource
including recruiting, appraising, training and developing,
motivating and separating.

a  function is the process that integrates the functions as

planning, organizing, and controlling
 a
a





a  determines =
 results the organization will

achieve
a  specifies = the results will be achieved
a  determines =   the results are achieved
a Through planning,organizing and controlling, managers
   
 ÷


 


  

2. A LOOK AT THE PERSONNEL MANAGEMENT

FUNCTION
(a) The definition as described by IPM
(b) The definition as described by Edwin Flippo
3. ANALYSIS OF THE PM FUNCTION
4. UNDERSTANDING HUMAN RESOURCES
FUNCTION
 ÷




Definition of PM- Institute of Personnel Management (IPM) 1963

³Personnel Management is the responsibility of all those who

manage people, as well as being a description of the work of
those who are employed as specialists.It is that part of
management which is concerned with people at work and with
their relationships within an enterprise. Personnel Management
aims to achieve both efficiency and justice, neither of which can
be achieved without the other. It seeks to bring together and
develop into an effective organization the men and women who
make up an enterprise enabling each one to make his best
contribution to its success as an individual and as a member of a
working group. It seeks to provide fair terms and conditions of
employment, and satisfying work for those employed.´
  
Edwin Flippo
µPersonnel management is the planning, organizing, directing, and
controlling of the procurement, development,compensation, integration,
maintenance, and separation of the human resources to the end that
individual, organizational, and societal objectives are accomplished.¶

Planning Procurement Individual
Organizing Development Organizational
Directing Compensation Societal
Controlling Integration
Maintenance
Separation
 Ò    

1. RECRUITMENT MAN
- textile and jute mills required unskilled in large numbers
- recruitment on daily basis- badli workers
- systematic records
2. LA:OUR MAN
- tough person for dealing with unskilled workmen
- also their union leaders
3. INDUSTRIAL RELATIONS MAN
- dealing with union representatives
- manipulating them
- ensuring the organization needs are met
 Ò    

4. LEGAL MAN

- Plethora of labour legislations

- dealing with Industrial Disputes in the various courts
- liaisoning with legal advisors and court authorities
5. WELFARE MAN
- Section-49 man
- various responsibilities laid down
-fulfilling them and satisfying the various authorities
  
  

 

Rec.-M Labour-M IR-M Legal-M Wlf.-M Admn.-M

 ÷ Ò 
÷
   ± 
1920-30 Welfare management Clerical Welfare Administrator,
Paternalistic policies Policeman

1940-60 Expanding the role to Administr Appraiser

Labour Welfare, I. R., & ative Advisor Mediator
Personnel Admn Legal Advisor
1970-80 Efficiency, effectiveness Develop Change agent,
dimensions added mental Integrator
Emphasis on human Trainer,
values, aspirations dignity, Educator
usefulness
1990s Incremental productivity, Proactive, Developer, Counselor
gains through human growth- Coach,Mentor,Problem
assets oriented Solver
2000 Centrality of Role Strategic Partner in Top Mgt.
onwards
  

!"#$

³ Personnel Management is workforce- centered, directed mainly at

organization¶s employees; finding and teaming them, arranging for them
to be paid, explaining management¶s expectations, justifying
management¶s actions, satisfying employees work-related needs, dealing
with their problems and seeking to modify management action that could
produce unwelcome employee response. Although indisputably a
management function, personnel management is never totally identified
with management interests, as it becomes ineffective when not able to
understand and articulate the aspirations and views of the workforce.´
  

!"#$

³ Human Resources Management is resource-centered, directed

mainly at management needs for human resources( not
necessarily employees) to be provided and deployed. Demand
rather than supply is the focus of the activity. There is greater
emphasis on planning, monitoring and control, rather than
mediation. Problem- solving is undertaken with other members
of management on human resources issues rather than directly
with employees or their representatives. It is totally identified
with management interests, being a general management activity,
and relatively distant from the workforce as a whole.´
  
Objectives of HRM-
1. To Help The Organization Reach Its Goals

2. To Employ The Skills And Abilities Of The Workplace Efficiently

3. To Provide The Organization With Well-trained And Motivated

Employees

4. To Increase To The Fullest The Employee¶s Job Satisfaction And

Self-actualization

5. To Develop And Maintain A Quality Of Work Life

6. To Communicate HR Policies To All Employees

7. To Help Maintain Ethical Policies And :ehavior

 K% &

K'|(

Manpower Planning Recognition Medical
Recruitment Negotiation Crèche
Induction Agreements Safety & Accident Prevn.
Probation Settlements Working Conditions
Confirmation Industrial Disputes Transport
Transfer Discipline Recreation
Promotion Strikes & Lockouts Housing
Increments Productivity
Timekeeping
Payroll
Records & Stats.
Separation
 Human Resources Planning
Definitions:
1. ³HR planning is the process-including forecasting, developing and
controlling- by which a firm ensures that it has the right number of people
and the right kind of people at the right places at the right time doing work
for which they are economically most useful .³(Geisler)
2. ³The HR planning process consists of forecasting and strategic planning,
and program implementation and evaluation.
Aspects include the following:
(a) The future plans, growth areas, additions/deletions of
business/product/service lines
(b) The change in technology, work methods, location of plants, relocation of
people
(c) The productivity mix that is being planned
(d) The change in company systems, practices, including work culture( the
phenomenon of delayerring and empowering people
(e) The proposed changes e, g, from functional to matrix structure
(f) A proper and full job profile to match the job task requirements
(g) An inventory based on HRIS to clearly indicate the existing capabilities
 Human Resources Planning
K%&) 
Corporate Mission-Strategy-Structure

Planning Horizon-HRI System- Inventory Profile

Changes Needs Deployment

Need for Defining HRP

:asis for Planning-Demand-Supply

Environment( Ext. Int.)

Methods- Judgement-Ratios

Organization Process- Approvals

Redeployment/Retraining/VRS
 HUMAN RESOURCE PLANNING
JO: ANALYSIS consists of three parts
Job Description
Job Specification
Job Classification
Job Evaluation

JO: DESCRIPTION- is an organized, factual statement of

the duties and responsibilities of a specific job. It should
tell what is to be done , how it is done and why.
JO: SPECIFICATION- is a statement of the minimum
acceptable qualities necessary to perform a job properly.
JO: CLASSIFICATION- grouping of jobs on some specific
basis such as kind of work or pay.
JO: EVALUATION- is a systematic and orderly process of
determining the worth of a job in relation to other jobs.
HUMAN RESOURCE PLANNING
The first point of HRP is to determine the s% and s%of
personnel to be recruited etc.
There is a need to have a Personnel Requisition Form duly authorized
without which no hiring/placement should be done.
Terminology used is detailed below:
- a group of tasks assigned to an individual
*-group of positions that are similar as to the kind and level of work
-is a group of jobs that are similar as to kind of work and
are found throughout the industry or throughout the country. An
occupation is a category of work found in many firms.
n. b. One can have a Position, Job and an Occupation simultaneously
*+K K ±|±- is the process of studying and collecting information
relating to the operations and responsibilities of a specific job.
n.b. Job Analysis is not to be confused with Motion Study which is the
process of finding out the easiest, most effective, and most
economical way of doing it.
 Human Resources Planning
&,-
1. Requisition for which category e.g.Workmen/ Service Staff
Staff/ Officers
2. Location of the Job/ Vacancy
3. Nature of the Vacancy-Permanent/ Temporary(months)
4. Number of Vacancies
5. Whether within sanctioned plan or not
6. Reason for Vacancy-Workload/Replacement
7. How is the vacancy sought to be filled-Transfer/Internal
promotions/Outside Recruitment
8. Job Description
9. Job Specification
10. Originated/ Recommended/ Scrutinized/ Sanctioned
11. Copies to all concerned
 Human Resource Planning
&*:
1. Job Title
2. Reporting To
3. Reporting to Job Holder
4. Overall Responsibilities
5. Main Tasks/ Accountabilities
6. Factor Analysis-situational, goals and activities
7. Resources Controlled
(a) Total no. of staff- levels , categories etc (b) Annual :udget
(c) Floor Space (d )Value of Assets (e) Turnover
(f) Throughput
8. Decisions
9. Complexity- units, functions, tasks
10. Contacts
11. Relation to other jobs- internal and external
12. Physical Environment
 Human Resources Planning
&*±
1. Job Title
2. Job Objective
3. Main Duties
4. Reporting To ND those reporting to Job Holder
5. Qualifications (a) Educational (b) Professional
6. Experience (a) Number of years (b) Nature of Experience
7. Knowledge-specialized, general, industry etc.
8. Skills required e.g. communication, computer etc.
9. Other qualities e.g. leadership etc.
10. Age Range
11. Personality
12. Relationships- Superiors,Subordinates, Peers, others
13. Aptitudes or Qualities
14. Attitudes
15. Circumstances or :ackground
 Human Resources Planning
ROLE ANALYSIS
Job Analysis should be extended to include Role Analysis. The concept
of role is broader than that of job. A role would consist of the pattern
of expected behaviour, interactions, and sentiments for an individual
holding an assigned job.
e. g. a supervisor or boundary-spanning jobs like personnel manager or
credit officer etc.
Such roles require superior verbal skills, sensitivity to the values of the
external personnel, and an aptitude for remembering details.
Job descriptions in two companies may look the same but the role
requirements could be substantially different e.g. Engineering Dept.
Supervisor-
(a) Democratic set-up-helping ,supporting, persuading talking freely and
cheerfully, and empathetic understanding
(b) Authoritarian- aggressiveness in relation to others, insistence upon
adherence to prescribed patterns, impatience with faulty
performance, and supportive relationships with superiors rather than
with subordinates.
 HUMAN RESOURCES PLANNING
For an understanding of the Human Resources Planning System it is
necessary to know the sub-systems which form a part of Human
Resources Management.
The sub-systems are as under:
1. Manpower Planning
2. Selection
3. Induction and Placement
4. Performance Appraisal
5. Training and Development, and Career Planning
6. Compensation
7. Work and Involvement, and Quality of Work Life (QWL)
|
(a) HR strategies, systems and structure
(b) Cross-functional teams, open communication system and data access
(c) Employee competency and development needs e.g customer orientn.
(d) Employee orientation towards organizational survival vis-à-vis
competition
 PROCESS OF JO: ANALYSIS

±
Job Analyst *
Employee Tasks
Supervisor * Duties
Tasks Responsibilities
Performance Standards &
Knowledge Required Recruitment
Skills Required Selection
Experience Needed Training & Devpt.
Job Context Performance Appraisal
Duties Compensation Mgt.
Equipment Used
 

Interviews *±
Observations Skill Requirements
Records Physical Demands
DOT Knowledge requirements
Abilities Needed
 :ASES FOR JO: DESIGN

For the job, including tasks,
duties,and responsibilities
to be performed

|  '

including human
Concerns centering on THE JO: capabilities
efficient production and limitations
processes and work
method improvements
+ 
Reflected in the different
talents,abilities, and skills of
employees
 HUMAN RESOURCES PLANNING
FORECASTING HR REQUIREMENTS ( K%)
(p

  
)
1. Managerial Estimates
2. Sales Projections
3. Simulations
4. Vacancy Analysis

FORECASTING HR AVAILA:ILITY (±%K%)

( 
  
 )
1. Succession or Replacement Charts
2. Skills Inventories (use of HRIS)
3. Labor Market Analysis
4. Markov Analysis (Transition Matrix)
5. Personnel Ratios
 HUMAN RESOURCES PLANNING
VACANCY ANALYSIS
(Historic Departures)
Level Empl. Turn.% Expected Expected to
Vacancies remain
TOP MGT . 100 20% 20 80

MID MGT. 200 24% 48 152

LOW.MGT. 600 22% 132 468

SKILLED W 600 16% 96 504

ASSY WKRS 2000 12% 240 1760

TOTALS 3500 536 2964

Average turnover percentage= 536/ 3500= .1531

± ±

  
   ±







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# ±


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  ±

 HUMAN RESOURCES PLANNING
PERSONNEL RATIOS
Past experience has developed these ratios for recruiting a Cost
Accountant.

For every 12 applications received only 1 looks promising enough to

invite for an interview
Of every 5 persons interviewed, only 1 is actually offered a position in
the organization
Of every 3 job offers made,only 2 accept the position
Of every 10 new workers who begin the training program,only 9
successfully complete the program

THUS 100 APPLICATIONS MUST :E RECEIVED, so that

8.33 JO: INTERVIEWS CAN :E HELD, so that
1.67 JO: OFFERS CAN :E MADE, so that
1.11 PEOPLE MUST :E TRAINED, so that WE GET
ONE NEW COST ACCOUNTANT
 HUMAN RESOURCES PLANNING
(HRIS)
PERSONAL DATA
Age, Gender, Dependents, Marital status, etc.
EDUCATION & SKILLS
Degrees earned, Licenses, Certifications
Languages spoken, Special skills
Ability/ knowledge to operate specific machines/equipment/software
JO: HISTORY
Job titles held, Location in Company, Time in each position, etc
Performance appraisals, Promotions received, Training & Develpt.
MEM:ERSHIPS & ACHIEVEMENTS
Professional Associations, Recognition and Notable accomplishmnts
PREFERENCES & INTERESTS
Career goals, Types of positions sought
Geographic preferences
CAPACITY FOR GROWTH
Potential for advancement, upward mobility & growth in the Co.



 
 aa
1. |
‡ History of company
‡ Names and titles of key executives
‡ Employee¶s title and department
‡ Layout of physical facilities
‡ Probationary period
‡ Products/services offered
‡ Overview of production process
‡ Company policies and rules
‡ Disciplinary procedures
‡ Employee¶s handbook
‡ Safety steps



 
 aa
2. %+
‡ Pay scales, pay days
‡ Vacations, holidays
‡ Rest pauses
‡ Training avenues
‡ Counseling
‡ Insurance, medical, recreation, retirement benefits
3. |
‡ To supervisors
‡ To co-workers
‡ To trainers
‡ To employee counselor



 
 aa
4' *
‡ Job location
‡ Job tasks
‡ Job safety needs
‡ Overview of jobs
‡ Job objectives
‡ Relationship with other jobs
 ÷  !
÷
PERFORMANCE APPRAISAL SYSTEM
³ I have six honest serving men,
They taught me all I knew,
Their names are What and Why and When
How and Where and Who.´ Rudyard Kipling
ASPECTS OF PERFORMANCE APPRAISAL
WHAT: It is an assessment about how the employee is performing on the
job. Is it as per expectations, below expectations or above expectations.
WHY is it necessary to have an appraisal systems? Two objectives are
there- what are these ?
WHEN are appraisals to be done? Once a year? Twice a year ? Or once
in two years?
Is there a process involved in appraisals? WHO is to be involved and
why must they be involved?
WHERE is it to be done? In the open or behind closed doors?
HOW- Methods of Performance Appraisal
  
PURPOSES OF APPRAISAL
1. Assessing Performance
2. Increment
3. Promotion
4. Transfer
5. Training
6. Development
7. Termination
  
Types of Appraisal Systems
1. Traits appraisal
2. Targets and Traits appraisal
3. M:O
4. 360 Degree appraisal system
 
a
   a
Other Methods of Performance Appraisal:
1. Ranking
2. Person-to person comparison
3. Grading
4. Graphic scales
5. Checklists
6. Forced choice description
7. :ES-expectation scales
:OS- observation scales
8. Essay
 
a
   
TRAINING OF THE RATER:
1. The halo error
2. The central tendency
3. Constant errors
(a) too harsh
(b) too easy or lenient
4. Miscellaneous errors
(a) similar-to me.
(b) contrast
(c )position
(d) biases of sex, race, religion, and nationality
 



a

TRAINING TERMINOLOGY
µTraining´- is a process of learning a sequence of
programmed behaviour. It attempts to improve
performance on the current job or prepare for an intended
job

µDevelopment¶ ± it is related to training and covers not only

activities which covers improvement in job performance
but also brings about growth of the personality; helps
individuals in the progress towards maturity and self-
actualization of the person¶s potential capacities so that
they become not only better employees but also better men
and women.Training a person for a bigger job is
Development which would include not only specific skills
and knowledge but also personality and mental attitudes
 



a

Training Terminology
µEducation¶ ± is the understanding and intervention of knowledge. It
develops a rational and logical mind that can determine relationships
among pertinent variables and their character, and understanding of
basic principles and develop the capacities of analysis, synthesis and
objectivity, Usually, education is outside the purview of organizations
except of educational institutions.

K

Term Short-term Long-term
Personnel Non-managers Managers
Process Technical & Philosophical &
Mechanical Theoretical
 



a

The Training Process involves:
1. Identification of performance opportunities and analysis of what
caused those opportunities to exist
2. Identification of alternative solutions to the opportunity and
selection of the most beneficial solution
3. Design and implementation of the solution
4. Evaluation of the results
Training provides employees with the knowledge and skills to
perform more effectively, preparing them to meet the inevitable
changes that occur in their jobs
Training is an ³opportunity´ for learning
Learning means a relatively permanent change in cognition
(i.e.understanding and thinking) that results from experience and
that directly affects behaviour.
Learning happens because of many factors including design and
implementation of training, the motivation and learning style of the
trainees, and the learning climate in the organization
 



a

Learning Objectives
±

+
‡Compilation
‡Automaticity

LEARNING

.)
‡Declarative Knowledge
K
‡Procedural Knowledge
‡Strategic Knowledge ‡Affect/Feelings
  !"





Who? Non-managerial Managerial
What? Technical & Theoretical
Mechanical Conceptual ideas
Why? Specific job General Knowledge
related purpose
When? Short-term Long-term
 



a

Purpose of Training:
1. To increase Productivity
2. To improve Quality
3. To improve Organizational Climate
4. To improve Health and Safety
5. Obsolescence Prevention
6. Personal Growth
Responsibility for Training
1. Top Management- frames training policy
2. Personnel Dept - plans, establishes and evaluates programmes
3. Supervisors - implement and apply development procedure
4. Employees - who provide feedback, revision and suggestions
  !"
K
1. People remember only 10% of what they read
2. 20% of what they hear
3. 30% of what they see
4. 50% of what they see and hear
5. 70% of what they say
6. 90% of what they say as they perform the
task
N.:. In other words, people learn best and more by doing than by
µhearing¶.
  !"
Training Methods and Techniques

Classification of Training Methods

On the job Demon. & Apprenticeship Other Training

examples Methods

Vestibule Simulation Classroom

Methods

Lectures Conference Associations Audiovisual

Case Study
Role-Playing
Programmed
Instruction
 



a


  -
1.
 /
 

Apprenticeship
In-Plant Training
Craftsmanship Training
2. ±±
Role Playing
:usiness Game
In-:asket Training
3. %

Sensitivity Training-T-Group and L-Group
Transactional Analysis
 



a


  0'1
2' ±
Incidents, Case Method/Case Studies
v' |

Practicing Specific Skills
Reading and Writing Assignments
Postal Tuition
Programmed Instruction
3'   
Syndicate Method
Seminars , Conferences, Colloquium, Symposium
7. The Lecture Method
 CAREER PLANNING
( :alancing Individual and Organizational Needs)
" 
±
Current competencies Employee turnover
Future competencies Absenteeism
Market changes Talent pool
Mergers, etc. Outsourcing
Joint ventures Productivity
CAREER MANAGEMENT

Age/tenure Career stage
Family concerns Education & training
Spouse employment Promotion aspirations
Mobility Performance
Outside interests Potential
Current career path
| 
 CAREER PLANNING OF HR MANAGEMENT

VP-HR

Corp.HR
Dir.
Div.HR
Corp.HR Dir.
Manager
Asst. div
HR Dir.
Reg.HR
Plant
Manager
HR mgr
Asst. plt.
HR mgr.
Regl.HR HR
Associate Super.
HR
Associate
ALTERNATIVE CAREER MOVES

PROMOTION

EXIT
TRANSFER

DEMOTION
 CAREER PLANNING
The basis of Career Planning is the Appraisal System which has two
basic objectives viz
(a) Control Mechanism (b) Development Mechanism
Appraisal has its linkages which are depicted in the following diagram
±K

Quality Cost Productivity Measure Measures

And and Measurement of of
Quantity Profit Withdrawals Resistance
As
Performance HR
Acctg.
Absenteeism Separations
& Turnovers

Minimum Maximum Disciplinary Grievances

Performance Performance Actions
Standards Standards
 CAREER PLANNING
(Components of Career Planning)
|
Career Planning Career Planning

Future Needs Self Awareness: Abilities

and interests
Career Ladders Planning Goals, Life & work

Assessment of Individual Planning to Achieve Goals

Potential

Connecting Organizational Alternatives: Internal & Extl.

Needs and Individual Need to Organization

Coordination and Audit of Career ladders: Internal and

Career System & Extl. To Organization
±% 

 CAREER PLANNING

4-  ||%
 ,
The Goal Matching Opportunities & Requirements
Encourage employee ownership Identify future competency levels
Create a supportive context Establish job progressions/careers
paths
Communicate direction of company :alance promotions, transfer,
Establish mutual goal setting and exits etc.
planning Establish dual career paths
|4
| %
Provide workbooks & workshops Measure competencies(appraisals)
Provide career counseling Establish talent inventories
Provide career self-management Establish succession plans
training Use assessment centers
Give development feedback
Provide mentoring
 ÷a  


#
 


#a 
$÷
1. Outsourcing HR activities
2. :PO and Call Centres
3. How to balance Work with Life (QWL)
4. Making HR activities Ethical
5. Managing Diversity
6. Attitude towards Unions
7. Globalization
8. Corporate Re-organizations
9. New Organizational Forms
10.Changing Demographics of the Workforce
11.Changed Employee Expectations
12.Loss of Joy and Pleasure
 ÷a! 
  
Using HRM tools for achieving Productivity:
1. Attracting the right kind of people
2. Getting them to give of their best
3. Providing them with the right Leadership
4. Creating an Organizational Culture that
encourages Learning
5. Rewarding employees for their Performance
6. Training & Developing and Growth Opportunities
7. Making efforts to Retain employees
 Job Enrichment
Means enhancing a job by adding more meaningful tasks and duties to
make the work more rewarding or satisfying. This was popularized
by Herzberg who highlighted the motivational needs of employees
like self-fulfillment and self-esteem.This is for long-term satisfaction
and performance goals.
Job enrichment, or vertical expansion of jobs, may be accomplished by
increasing the autonomy and responsibility of employees.
Hertzberg described 5 factors for enriching jobs and motivating
employees:
1. Achievement
2. Recognition
3. Growth
4. Responsibility
5. Performance of the whole jobs instead of of only parts of the job
Managers were expected to enrich the jobs in terms of the following:
 Job Enrichment ( contd.)
-increasing the level of difficulty and responsibility of the job
-allowing employees to retain more authority and control over work
outcomes
-providing unit and individual job performance directly to employees
-adding new tasks to the jobs that require training and growth
-assigning individuals specific tasks to enable them to become experts.
The above factors enable
(a) Greater role in the decision-making process
(b) More involved in Planning, Organizing, Directing and Controlling
(c) May be accomplished by formation of teams for self-management
JE is not a solution to problems of pay or benefits dissatisfaction,or
employee security
Moreover its not that all employees are dissatisfied with mechanical
work on the assembly line and its not that all employees seek
responsibility and challenge in their jobs as they like their minds to
wander while they work.
 Employee Empowerment
This involves granting employees power to initiate change, thereby
encouraging them to take charge of what they do.
E encourages employees to become innovators and managers of their
own work, and it involves them in their jobs in ways that give them
more control and autonomous decision-making capabilities.
E involves ³pushing down decision-making responsibility to those
internal and external customers.´
For encouraging E the following conditions are necessary
!' : Employees must be encouraged to take control of
their work tasks. Employees, in turn, must care about improving their
work process and interpersonal work relationships
5' |: The environment must be receptive to people with
innovative ideas and encourage people to explore new paths and to
take reasonable risks at reasonable costs. An empowered
environment is created when curiosity is as highly regarded as is
technical expertise
 Employee Empowerment (contd.)
3.K: Employees must have access to a wide range
of information. Involved individuals decide what kind of information
they need for performing their jobs
4. K%: E does not involve being able to do whatever you
want. Empowered employees should be held accountable for their
behaviour toward others, producing agreed-on results, achieving
credibility,and operating with a positive approach
E thrives where the culture of the organization is open and receptive to
change. Culture is created through the philosphies of senior managers
and their leadership traits and behaviour.
Effective leadership in an empowered organization is highlighted by
managers who are honest, caring, and receptive to new ideas, and who
exhibit dignity and respect for employees as partners in organizational
success.
 INCENTIVE SCHEMES
In the absence of incentive schemes employees tend to only meet the
minimum performance standards.However,when incentives are
linked to output, workers will increasingly apply their knowledge and
skills to their jobs and will be encouraged to work together as a team.
Incentive Plans are grouped under three categories:
1. Individual Incentive Plans
2. Group Incentive Plans
3. Enterprise Incentive Plans
Individual Group Enterprise
1.Piecework Team compensation Profit sharing
2.Standard hour plan Scalon Plan Stock options
3.:onuses Rucker Plan ESOPS
4.Merit pay Improshare
5.Lump-sum merit pay
6.Incentive awards
7.Sales incentives
8.Incentives for professional employees
9.Executive compensation
 Incentive schemes (contd.)
Generally Incentive schemes are linked with organizational objectives
both on an individual or group basis. These could be
(a) Lowering labor costs
(b) Improving customer satisfaction
(c) Expand product markets
(d) Maintain high levels of productivity and quality

Advantages of Incentive Pay Programs:

1. Employee efforts focus on specific performance targets
2. Variable costs linked to achievement of results
3. :oth quality and quantity parameters are to be met
4. Incentives foster teamwork and unit cohesiveness
5. Incentives are a way to distribute success
6. Incentives are a way to reward or attract top performers
Successful incentive programs should be- linked to valued behaviour,fair
to employees,set challenging but achievable productivity/quality
standards with payout formulas simple and understandable
 Incentive schemes( contd.)
Individual Incentive Plans:
A) Piece Work
1. Straight Piecework-for each unit produced
2. Differential Piecework ±if production exceeds the standard output
higher rate is paid for all the output than the rate paid to those who
do not
n.b. is applicable where the work is readily measureable;quality is
less critical;job is fairly standardized and there is a steady flow of
work
:) Standard Hour Plan
Standard Time is the predetermined time for completing a job. If a
job which requires 5 hours is completed in 4 and-a-half hours he
would be paid his wage rate times five hours.
C) :onus
It is a payment made beyond the wage rate and provides employees
with more wages for increased effort.It is more applicable to
executive and managerial employees also to all.
 Incentive schemes(contd.)
Merit Pay:
This is paid to those who have achieved some objective performance
This will serve as a pay motivator especially for top performers while
sending a message to poor-performing employees. A strategic
compensation policy must differentiate between outstanding,good
and average performance. Furthermore,granted on the basis of merit
should be distinguishable from cost-of-living or other general
increases.
Only a percentage of employees will be eligible for merit
awards(7to10%).
Problems with Merit Raises:
1. Money may not be adequate to raise base pays of all employees
2. Problems of defining performance clearly
3. Employees unable to distinguish merit raises to their performance
4. Performance appraisal often at odds appraiser and appraisee
5. Lack of honesty and cooperation
6. Merit pay do not motivate higher levels of management
 Incentive schemes ( contd.)
Incentive Awards and Recognition
Employers should take care to tie awards to performance and deliver
awards in awards a in a timely, sincere and specific way
Employers are now thinking of awards and employee recognition more
strategically with programs closely aligned to their business goals

Sales Incentives
Sales jobs require good deal of enthusiasm and drive in view of the
competitive nature of selling. Incentive plans must provide a source of
cooperation and trust particularly when employees are away from the
office and cannot be supervised closely and who have to exercise a high
degree of self-discipline
Sales people can be measured by the rupee value of their sales as also by
their ability to establish new accounts,promote new products or services
and provide various forms of customer service and assistance.
It may be noted that sales performance is affected by factors beyond their
control like economic and seasonal fluctuations, sales
competition,changes in demand and nature of sales territory etc.
 Incentive Schemes ( contd.)
Types of Sales Incentive Plans
(a) Straight salary plan:Helps to devote more time to providing more
services and building up goodwill with customers without affecting
income. However, the limitation is that there is no motivation to
maximize sales effort
(b) Straight commission plan:Provides maximum incentive and is easy to
compute and understand. It may be a percentage of sales but has the
following limitations
1.Emphasis is on sales volume rather than on profits
2.Customer service after the sale is likely to be neglected
3.Earnings tend to fluctuate between good and bad business periods
4.Salespeople are tempted to grant price concessions
(c ) Combined salary and commission plan: This is widely used and
there is the 70/30 distribution reasons being:has a right mix with
advantages of both the above systems; affords greaer flexibility could
maximize company profits;can develop favourable ration of expenses
to sales and the sales force can be motivated to meet marketing goals.
 Job Satisfaction
Definition: ³ A pleasurable or positive emotional state resulting from the
appraisal of one¶s job experience´
From the above it can be inferred that job satisfaction is the consequence
of employee¶s perception of how well his job provides him those
things which are considered to be important.
Job Satisfaction has three important aspects:
1. It can be said to be an emotional response( cannot be seen) to the job
situation
2. It will be measured in terms of how well the end results match(or
meet) or exceed expectations
3. It is always referred to in terms of several related attitudes
There are various factors which affect Job Satisfaction:
(a) Pay
(b) The Work
(c) Promotions
(d) Supervision
(e) Work Group
(f) Working Conditions
 Job Satisfaction( contd.)
Ways of measuring Job Satisfaction:
01 ±
1. General rating scales
2. Popular rating scales
Minnesota Satisfaction Questionaire
Job Description Index
Porter Need Identification Questionaire
01 |
This method was popularized by Frederick Herzberg and covers
incidents in the job situation which were particularly satisfying and
dissatisfying and related to those positive and negative attitudes.
(c ) |)
This method provides an opportunities for in-depth interaction and
clarification but the interviewer could be prejudiced and the manner
of questioning and recording the information could affect the
result.:esides the method is time-consuming and expensive.
Job Satisfaction ( contd.)
01K

Here the respondents are asked on how they feel like behaving with
respect to certain aspects of their job.
|*±(

There is a big debate on whether job satisfaction has a positive effect on
productivity. :ut employees with satisfied employees are more effective
than those with dissatisfied employees.Just as job satisfaction is a result
of work experience, organizational effectiveness can be improved by
identification of causes for high dissatisfaction.
It must be noted that there is no definite linkage between satisfaction and
productivity. In other words,satisfied workers need not be the highest
producers.
*±K
Research has shown that there is an inverse relationship between job
satisfaction and absenteeism.When Job satisfaction is high, absenteeism.
And when satisfaction is low, absenteeism is high.When an employee
feels is not that important he tends to remain frequently absent.
 Job Satisfaction (contd.)
 *±
-:etter mental health and physical health
-Enthusiasm to learn new job-related tasks
-Fewer on- the- job accidents and grievances
-Likely to engage in pro-social behaviour- tries to help colleagues,
customers and will to be cooperative
Relationship between Job Satisfaction and Productivity, Turnover
and Absenteeism

%
K

No strong A moderate Inverse
Linkage relationship relationship
between exists exists
JS and between JS between
productivity and turnover Absenteeism
and JS
 Assignment in HRM for Management students

This is a group assignment consisting of 5 students

1. A pharmaceutical company which has a good market and its factory
in Mumbai is unable to expand because of Government restrictions.
2. It plans to double its turnover and profits in 3-5 years
3. It has an employee strength of 1000 employees and has selected a
factory site in Goa where a state-of-art plant is being set up.
4. It would need only 500 employees to shift to Goa and would not
require the others
5. The task is to address all the People issues and ensure a smooth
transfer of personnel to Goa and make the factory fully operational.
6. The Top Management would be given an incentive of Rs. 2 crores for
the successful completion of the job
7. The time limit for the completion of the job basically involving the
People issues is 6 months