bhagyesh machhindra dongare

7/29/2019 BHAGYESH MACHHINDRA DONGARE

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BHAGYESH MACHHINDRA DONGARE.

TYBMS .

DIV- A .

ROLL NO-36.

SUB- HUMAN RESOURCES MANAGEMENT IN INSURANCE SECTOR.GUIDE- ARTI SHARMA.VIVA COLLEGE.

EXECUTIVE SUMMARY

"If you want 10 days of happiness, grow grain. If you want 10 years of

happiness, grow a

tree. If you want 100 years of happiness, grow people."

OBJECTIVE OF THE STUDY

The phenomenal expansion of insurance sector: The major insurance

companies in our

country have expanded their branches phenomally in the last few decades. Also,

many new

insurance companies are being established all over the country.

The objective of the study is therefore, to examine the insurance companies,

their functioning

and asses their viability.

IMPORTANCE OF THE STUDY

The need to make profits: Profits are essential for the survival and growth of

every

commercial organization.Increasing emphasis on profitability: The profitability aspect of the insurance

companies has

gotten a lot of attention in the recent years.

Employee satisfaction: Along with the increasing emphasis on profitability,employee

satisfaction has also been generating considerable interest.

This study has thus been undertaken to examine the importance human resource

management in

insurance companies.HYPOTHESIS STAEMENT

Investments in HRM practices can help a firm perform better.

INTRODUCTION

Competitive advantage of a company can be generated from human resources

(HR) and

company performance is influenced by a set of effective HRM practices. In this

study, weintended to assess the HR practices in insurance companies

Every organization is composed of people and utilizing their services,developing their skills,


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motivating them to enhance their levels of performance and ensuring that they

remain committed

to the organization are essential for the accomplishment of organizational

objectives. This is true

for all types of organizations - government, business, education, health,recreation or socialaction. Organizations that can do this will be both effective as well as efficient.

Inefficient or

ineffective organizations face the danger of stagnating or going out of business.

The emphasis on proper and effective human resource management has

increased in the recenttimes. It has come to be identified as an important factor in the successful

management of an

organization. With the growing importance of knowledge workers to

organizations and the rising

expectations of employees, it is essential to have a good human resource

management system in

place.

Human Resource Management(HRM) consists essentially of four functions

acquiring,

developing, motivating and retaining human resources. The acquisition function

starts with

planning for the number and categories of employees required, and end with

staffing. Thedevelopment function has three dimensionsemployee training, management

development, and

career development.

The motivation function includes identifying the individual motivational needsof employees and

finding ways to motivate them. The retention function is concerned with

providing a work

environment conducive to the employees and nurturing them to make them feel

committed andattached to the organization.

Human resources are the most valuable and unique assets of an organization.

The successful

management of an organization's human resources is an exciting, dynamic and

challenging task,

especially at a time when the world has become a global village and economies

are in a state offlux. The scarcity of talented resources and the growing expectations of the

modern day worker


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have further increased the complexity of the human resource function. Even

though specific

human resource functions/activities are the responsibility of the human resource

department, the

actual management of human resources is the responsibility of all the managersin anorganization.

It is therefore necessary for all managers to understand and give due importance

to the different

human resource policies and activities in the organization.

Human Resource Management outlines the importance of HRM and its differentfunctions in an

organization.

It examines the various HR processes that are concerned with attracting,

managing, motivating

and developing employees for the benefit of the organization.

The insurance sector employers are indulging into aggressive recruitments.

With around 15

million new policies being sold every year, the insurance sector is picking up

fast in India. Due

to its robust growth there is a need of skilled professionals in the sector. The

employers are

looking forward to hire freshers at junior levels as they are quite flexible and

ready to work aspart time employees as well. Apart from hiring actuaries and underwriters, the

industry is

focusing on hiring agents. These agents represent the front end of the customer

chain and areresponsible for bringing in new business.

INSURANCE SECTOR: AN INTROSUCTION

Insurance is a form of risk management primarily used to hedge against the

risk of a contingent

loss.Insurance is defined as the equitable transfer of the risk of a loss, from one

entity to another, in

exchange for a premium, and can be thought of as a guaranteed and known

small loss to prevent

a large, possibly devastating loss.

An insurer is a company selling the insurance; an insured orpolicyholder is

the person orentity buying the insurance.

The insurance rate is a factor used to determine the amount to be charged for acertain amount


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of insurance coverage, called the premium.

The six principles of insurance are:

1. IndemnityInsurance is a contract of indemnity where the insurance

company

indemnifies the insured against certain risks for a consideration known aspremium.2. Insurable interestmeans the loss of which will directly affect the insured.

3. Utmost good faithmeans that the insured and the insurance company will

not willfully

hide anything from each other.

4. Mitigationmeans the insured will not behave irresponsibly and will takedue care so

that the risk of loss or the loss is minimized.

5. Subrogationmeans the insurance company acquires legal rights to act on

behalf of the

insured i.e. the insurance company steps into the shoes of the insured.

6. Causa Proxima or Proximate Causemeans the proximate cause of loss to

ascertain

whether the loss is covered under the policy.

HISTORY OF INSURANCE SECTOR IN INDIAThe history of Insurance in India started with life insurance in 1818 when it was

conceived as a means to provide for English Widows. Interestingly in those

days a higher

premium was charged for Indian lives than the non-Indian lives as Indian liveswere considered

more risky for the coverage.

The Bombay Mutual Life Insurance Society started its business in 1870. It was

the firstcompany to charge same premium for both Indian and non-Indian lives. The

Oriental Assurance

Company was established in 1880. The General Insurance Business in India, on

the other hand,

can trace its roots to the Triton (Tital) Insurance Company Limited, the firstgeneral insurance

company established in the year 1850 in Calcutta by the British. Till the end of

nineteenth

century insurance business was almost entirely in the hands of overseas

companies.

Insurance regulation formally began in India with the passing of the Life

InsuranceCompanies Act of 1912 and the provident fund Act of 1912. Several frauds

during 1920's and1930's sullied insurance business in India.


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By 1938 there were 176 insurance companies. The first comprehensive

legislation was

introduced with the Insurance Act of 1938 that provided strict State Control

over insurance

business. The insurance business grew at a faster pace after independence.Indian companiesstrengthened their hold on this business but despite the growth that was

witnessed, insurance

remained an urban phenomenon.

INSURANCE JOB DESCRIPTION

The insurance job description which is generally assigned to people working inthe insurance

industry is given below:

To handle all the affairs of the customer related to the policies or the

services offered by the insurance company and to resolve any conflicts

arising if any.

To work for insurance company or several insurance companies and finding

clients in

order to create awareness about the insurance policies that the insurance

company has to

offer.

The job responsibility may include finding out if the claim made by the client

for

insurance cover warrantees insurance or not. To investigate whether all the premiums were paid on time and whether the

claim made

falls in the particular insurance policy.

To meet potential customers and sell them the insurance policies being offeredby the

insurance company.

Competencies required for job in insuranceAny Insurance job seeker must possess the following set of skills:

Public Speaking: A good insurance professional should have strongcommunication as

well as public speaking skills.

Computer knowledge: Basic knowledge of computers including Microsoft

Word,

WordPerfect, Outlook, Excel, PowerPoint, Tally etc would prove to be an asset.

People skills: An Insurance professional should be able to communicate as

well asinteract with other working professional including colleagues as well as clients

of thecompany.


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Organisational skills: As an insurance job includes organizing work it is

necessary to

have good skills in this department.

HUMAN RESOURCE MANAGEMENT: AN INTRODUCTION

Human resource management (HRM) isplanning personnel needs; recruiting,selecting,training, and developing capable employees; placing them in productive work

environments; and

rewarding their performance.

Thus, human resource management refers to a set of programmes, functions and

activities designed and carried out to maximize both, employee as well asorganizational

effectiveness. It is concerned with the people dimensions in the management.

Since every

organization is made up of people, acquiring their services developing their

skills motivating

them to higher levels of performance and ensuring that they continue to

maintain their

commitment to the organization are essential to achieving organizational

objectives. This is true,

regardless of the type of organization -government, business, education, health,

recreation or

social actions.

Human resource is one of the natural resources of any country's economy. It isthe

wealth of the country. In the context of banking, human resource is of greater

importance. The

deployment of human resource through proper and efficient selection, trainingand development,

is called Human Resource Management.

The success of any organization largely depends on efficient human resource

management, apart

from operations, marketing and sales, the HR department manages all theefficient people

working in operations and marketing divisions in any organization.

Thus, HRM refers to a set of programmes, functions and activities designed and

carried

out in order to maximize both employees as well as organizational

effectiveness.

Human resource management is based on four fundamental principles:1. Human resources are the most important assets important assets an

organization has and theireffective management is the key to its success.


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2. Organizational success is most likely to be achieved if the personnel policies

and procedures

are closely linked to corporate and strategic plans.

3. Organizational culture, values and climate significantly influence managerial

behavior andexert a major influence on the achievement of excellence. Hence, continuouseffort is needed

starting from the management in order to make the organisational culture

acceptable.

4. Human resource management is concerned with integrating all members of

the organizationinvolved and working together with a sense of common purpose.

An organization is driven by human capital and the quality and effectiveness of

the organization

is determined by the quality of the people that are employed. The resources of

men money

material and machine are collected and coordinated through people. Without

people organization

can not exist.

Success for most organizations depends on finding the employees with the skills

to successfully

perform the tasks required to attain the companys strategic goals.

Management decisions and processes for dealing with employees are critical to

ensure that theorganization gets and keeps the right staff.

HRM may be defined as a set of policies practices and programs designed to

maximize both

personal and organizational goals and the process of binding people andorganizations together

so that the objectives of the each are achieved.

Some definitions of HRM are as follows

HRM is the management function that is concerned with getting, training,

motivating andkeeping competent employees.

HRM is a most advanced approach in the field of resource mgmt. talks about

optimal utilization

of human capital. The approach is integrative and supportive.

HRM does talk about the cultivation of a skillful environment in which people

or employee

associate are able to extract their highest potential.HRM deals with the day to day operations of the human resources department.

This curriculum


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would include business law, compensation, employee relations, benefits, and

medical etc.

Human Resource Management ("HRM") is a way of management that links

people-related

activities to the strategy of a business or organization. HRM is often referred toas "strategicHRM". It has several goals:

To meet the needs of the business and management (rather than just serve the

interests of

employees);

To link human resource strategies / policies to the business goals andobjectives;

To find ways for human resources to "add value" to a business;

To help a business gain the commitment of employees to its values, goals and

objectives

OBJECTIVES OF HRM1. SOCIETAL- To be ethically and socially responsible to the needs and

challenges of the

society.

2. ORGANIZATIONAL-To bring organizational effectiveness and serve other

departments.

3. FUNCTIONAL- To do the optimal utilization of the resources and respond

to the need of

the organization.4. PERSONAL-To assist employees in achieving their personal goals to

motivate and retain

them thereby, enhancing the individuals contribution to the organization.

DEFINITION OF HRDHRD DEALS WITH DEVLOPMENT & UPGRADATION OF HUMAN

CAPITAL

(EXSISTING MAN POWERS UPGRADATION IN AN

ORGANISATION).IT IS A LONG

TERM PROCESS.HRD can be defined as A Set of systematic and planned activities designed

by an

organization, to provide its members with the necessary skills to meet

current and future

job demands. It is a part of HRM.

Thus, Human Resource Development deals with the training and the

developmental aspect ofemployees.

HRM IN INSURANCE


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Under present market forces and strict competition, the insurance companies are

forced to be

competitive. Contemporary companies must seek ways to become more

efficient, productive,

flexible and innovative, under constant pressure to improve results.The traditional ways of gaining competitive advantage have to be supplementedwith

organizational capability i. e. the firms ability to manage people.

Organizational capability relates to hiring and retaining competent employees

and developing

competencies through effective human resource management practices.Indeed, developing a talented workforce is essential to sustainable competitive

advantage.

High performance work practices provide a number of important sources of

enhanced

organizational performance. HR systems have important, practical impacts on

the survival and

financial performance of firms, and on the productivity and quality of work life

of the people in

them.

Objectives and Importance of the StudyLiberalization in the Indian insurance sector has opened the sector to private

competition.

The insurance industry forms an integral part of the global financial market,with insurance

companies being significant institutional investors.

In recent decades, the insurance sector, like other financial services, has grown

in economicimportance.

A number of foreign insurance companies have set up representative offices in

India and have

also tied up with various asset management companies.

All these developments have forced the insurance companies to be competitive.What makes a firm best is not just technology, bright ideas, masterly strategy or

the use of tools,

but also the fact that the best firms are better organized to meet the needs of

their people, to

attract better people who are more motivated to do a superior job.

In this manner the management of human resources becomes very crucial.

Thus, this study on HRM practices in insurance companies was taken up.

FUNCTIONS OF HRM IN INSURANCE

HRM consist of several interrelated functions. These functions are common toall organization.


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1.) Human Resource PlanningGeorge Bernard Shaw said: to be in hell is to drift; to be in heaven is to steer.

Human resource planning has traditionally been used by organizations to

ensure that the right

person is in the right job at the right time.Human resource planning can be defined as the process by which managementdetermines how

the organization should move from its current manpower position to its desired

position.

Through planning, management strives to have the right number and the right

kinds of people, atthe right places, at the right time, doing things which result in both the

organization and the

individual receiving maximum long-run benefits.

Factors Underlying Increased Interest in Human Resource PlanningUndoubtedly, there are many factors that account for the increased attention

directed to human

resource planning, but environmental forces-globalization, new technologies,

economic

conditions, and a changing work force seem particularly potent.

These create complexity and uncertainty for organizations. Uncertainty can

interfere with

efficient operations, so organizations typically attempt to reduce its impact;

formal planning isone common tactic used by organizations to buffer themselves from

environmental uncertainty.

The Process of Human Resource Management Planning

The human resource planning process, demands the HR manager to firstunderstand the business

requirement. Only if he comprehends the nature and scope of the business, will

he be able to

employ those who will deliver the required performance.

When it comes to engaging the manpower, the manager should have a keen eyefor spotting the

talent. It ensures that the workforce is competent enough the meet the targets.

Additionally, the existing 'talent pool' in the workplace should be taken into

consideration, so

that people with complimentary skills can be employed.

The functions of the HR manager are varied; he has to assess the currently

employed workforceand their shortcomings. Identifying these shortcomings goes a long way in

choosing an efficientworkforce.


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Human resource planning process, thus, can be considered as one of the

strategic steps for

building the strong foundation of an efficient workforce in an organization

STEPS IN HUMAN RESOURCE MANAGEMENT PLANNING

1. Determining the numbers to be employed at a new locationIf organisations overdo the size of their workforce it will carry surplus orunderutilised staff.

Alternatively, if the opposite misjudgment is made, staff may be overstretched,

making it hard or

impossible to meet production or service deadlines at the quality level expected.

So the questionswe ask are:

How can output be improved your through understanding the interrelation

between

productivity, work organisation and technological development? What does this

mean for

staff numbers?

What techniques can be used to establish workforce requirements?

Have more flexible work arrangements been considered?

How are the staffs you need to be acquired?

The principles can be applied to any exercise to define workforce requirements,

whether it be a

business start-up, a relocation, or the opening of new factory or office.

2. Retaining your highly skilled staffIssues about retention may not have been to the fore in recent years, but all it

needs is for

organisations to lose key staff to realise that an understanding of the pattern of

resignation isneeded. Thus organisations should:

monitor the extent of resignation

discover the reasons for it

establish what it is costing the organisation

compare loss rates with other similar organisations.Without this understanding, management may be unaware of how many good

quality staff is

being lost. This will cost the organisation directly through the bill for

separation, recruitment and

induction, but also through a loss of long-term capability.

Having understood the nature and extent of resignation steps can be taken to

rectify the situation.These may be relatively cheap and simple solutions once the reasons for the

departure of


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employees have been identified. But it will depend on whether the problem is

peculiar to your

own organisation, and whether it is concentrated in particular groups (e.g. by

age, gender, grade

or skill).3. Managing an effective downsizing programmeThis is an all too common issue for managers. How is the workforce to be cut

painlessly, while at

the same time protecting the long-term interests of the organisation? A question

made all the

harder by the time pressures management is under, both because of businessnecessities and

employee anxieties. HRP helps by considering:

the sort of workforce envisaged at the end of the exercise

the pros and cons of the different routes to get there

how the nature and extent of wastage will change during the run-down

the utility of retraining, redeployment and transfers

what the appropriate recruitment levels might be.

Such an analysis can be presented to senior managers so that the cost benefit of

various methods

of reduction can be assessed, and the time taken to meet targets established.

If instead the CEO announces on day one that there will be no compulsory

redundancies and

voluntary severance is open to all staff, the danger is that an unbalancedworkforce will result,

reflecting the take-up of the severance offer. It is often difficult and expensive

to replace lost

quality and experience.

4. Where will the next generation of managers come from?

Many senior managers are troubled by this issue. They have seen traditional

career paths

disappear. They have had to bring in senior staff from elsewhere. But they

recognise that whilethis may have dealt with a short-term skills shortage, it has not solved the longer

term question of

managerial supply: what sort, how many, and where will they come from? To

address these

questions you need to understand:

the present career system (including patterns of promotion and movement, of

recruitmentand wastage)

the characteristics of those who currently occupy senior positions the organisations future supply of talent.


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This then can be compared with future requirements, in number and type. These

will of course be

affected by internal structural changes and external business or political

changes. Comparing

your current supply to this revised demand will show surpluses and shortageswhich will allowyou to take corrective action such as:

recruiting to meet a shortage of those with senior management potential

allowing faster promotion to fill immediate gaps

developing cross functional transfers for high fliers

hiring on fixed-term contracts to meet short-term skills/experience deficits reducing staff numbers to remove blockages or forthcoming surpluses.

How can HRP be applied?The report details the sort of approach companies might wish to take. Most

organisations are

likely to want HRP systems:

which are responsive to change

where assumptions can easily be modified

that recognise organisational fluidity around skills

that allow flexibility in supply to be included

that are simple to understand and use

which are not too time demanding.

To operate such systems organisations need:

appropriate demand models good monitoring and corrective action processes

comprehensive data about current employees and the external labour market

an understanding how resourcing works in the organisation.

If HRP techniques are ignored, decisions will still be taken, but without the

benefit of

understanding their implications. Graduate recruitment numbers will be set in

ignorance of

demand, or management succession problems will develop unnoticed.2.) ORGANISINGOrganizing resources can mean a variety of things. First, the manager is in

charge of organizing

human resources. For example, a manager will need to be sure the appropriate

employees are

hired. In addition, it is the managers responsibility to ensure the employees

have the skillsnecessary for the workplace. Organizing these employees, according to when

they are neededand how they are utilized, is a critical part of the managers position.


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Organizing Occurs ContinuouslyOrganizing is a daily, weekly and yearly task for most managers. In todays

fast-paced business

world, things change quickly and variations occur. Managers must remember

that theorganizational component is fluid and forever-changing. Flexible managers areable to change

courses when necessary and still meet the clients needs.

Change is inevitable. For firms that experience change frequently, the

organizing function is

even more crucial. Organizational changes such as adding new positions oreliminating certain

processes can change the organizational level and structure of the business.

Importance of OrganizationPeople who are organized generally accomplish much more than disorganized

individuals. The

same is true of organized departments or businesses. Those managers who can

master the

organization function will enjoy a much smoother tenure in the management

position.

3.) JOB ANALYSIS:Job Analysis is a process to identify and determine in detail the particular job

duties and

requirements and the relative importance of these duties for a given job. JobAnalysis is a

process where judgments are made about data collected on a job.

The Job; not the person: An important concept of Job Analysis is that the

analysis is conductedof the Job, not the person. While Job Analysis data may be collected from

incumbents through

interviews or questionnaires, the product of the analysis is a description or

specifications of the

job, not a description of the person.Determining Training NeedsJob Analysis can be used in training/"needs assessment" to identify or develop:

training content

assessment tests to measure effectiveness of training

equipment to be used in delivering the training

methods of training (i.e., small group, computer-based, video, classroom...)

CompensationJob Analysis can be used in compensation to identify or determine:

skill levels compensable job factors


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work environment (e.g., hazards; attention; physical effort)

responsibilities (e.g., fiscal; supervisory)

required level of education (indirectly related to salary level)

Selection Procedures

Job Analysis can be used in selection procedures to identify or develop: job duties that should be included in advertisements of vacant positions; appropriate salary level for the position to help determine what salary should

be offered

to a candidate;

minimum requirements (education and/or experience) for screening applicants;

interview questions; selection tests/instruments (e.g., written tests; oral tests; job simulations);

applicant appraisal/evaluation forms;

orientation materials for applicants/new hires

Performance ReviewJob Analysis can be used in performance review to identify or develop:

goals and objectives

performance standards

evaluation criteria

length of probationary periods

duties to be evaluated

Methods

There are several ways to conduct a job analysis, including: interviews with

incumbents andsupervisors, questionnaires (structured, open-ended, or both), observation,

critical incident

investigations, and gathering background information such as duty statements or

classificationspecifications. In job analysis conducted by HR professionals, it is common to

use more than one

of these methods.

4.) JOB DESIGN:

Job design refers to the way that a set of tasks, or an entire job, is organized. Jobdesign helps to

determine: what tasks are done, how the tasks are done, how many tasks are

done, and in what

order the tasks are done.

It takes into account all factors which affect the work, and organizes the content

and tasks so that

the whole job is less likely to be a risk to the employee. Job design involvesadministrative areas

such as: job rotation, job enlargement, work breaks, and working hours.


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A well designed job will encourage a variety of 'good' body positions, have

reasonable strength

requirements, require a reasonable amount of mental activity, and helps foster

feelings of

achievement and self-esteem.FACTORS AFFECTING JOB DESIGNJob design is affected by organizational, environmental and behavioral factors.

A properly

designed job will make it more productive and satisfying .If a job fails on this

count, it must be

redesigned based on the feedback. The various factors affecting job design arethe following

Organizational factorsOrganizational factors include characteristics of task, work flow, ergonomics

and work practices.

Characteristics of Task: Job design requires the assembly of a number of tasks

into a job or a

group of jobs. An individual may carry out one main task which consists of a

number of interrelated

elements or functions. On the other hand , task functions may be spilt between a

team,

working closely together or strung along an assembly line. In more complex

jobs, individuals

may carry out a variety of connected tasks, each with a number of functions, orthese tasks may

be allocated to a group of workers or divided between them.

.

Work Flow: The flow of work in an organization is strongly influenced by thenature of the

product or service. The product or service usually suggests the sequence and

balance between

jobs, if the work is to be done efficiently .After the sequence of jobs is

determined, the balancebetween the jobs is established.

Ergonomics: Ergonomics is concerned with designing and shaping jobs to fit

the physical

abilities and characteristics of individuals so that ,they perform the jobs

effectively .

Work Practices: Work practices are set ways of performing work .These

methods may arisefrom tradition or the collective wishes of employees.

Environmental factors


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Environmental factors affect the job design. These factors that have a bearing

on job design are

employees abilities and availability and social and culture expectations.

Employee Abilities and Availability: Efficiency consideration must be balanced

against theabilities and availability of the people to do the work.Social and Cultural Expectations: During the earlier days, securing a job was

the primary

consideration. The worker was prepared to work on any job and under any

working conditions.

Now, it is not the same. Literacy, knowledge and awareness of workers haveimproved

considerably .So also, their expectations from the job, Hence, jobs be designed

to meet the

expectations of workers.

Behavioral Factors:

Behavioral factors include feedback, autonomy, use of abilities and variety.

5.) JOB EVALUATION:

Job evaluation is the process of systematically determining a relative internal

value of a job in

an organization. In all cases the idea is to evaluate the job, not the person doing

it. Job evaluation

is the process of determining the worth of one job in relation to that of the other

jobs in acompany so that a fair and equitable wage and salary system can be established.

Job Evaluation MethodsThere are three basic methods ofjob evaluation: (1) ranking, (2) classification,

(3) factorcomparison.

Ranking MethodPerhaps the simplest method of job evaluation is the ranking method. According

to this method,

jobs are arranged from highest to lowest, in order of their value or merit to theorganization. Jobs

also can be arranged according to the relative difficulty in performing them. The

jobs are

examined as a whole rather than on the basis of important factors in the job; and

the job at the

top of the list has the highest value and obviously the job at the bottom of the

list will have thelowest value.

Classification Method


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According to this method, a predetermined number of job groups or job classes

are established

and jobs are assigned to these classifications. This method places groups of jobs

into job classes

or job grades. Separate classes may include office, clerical, managerial,personnel, etc.The job classification method is less subjective when compared to the earlier

ranking method.

The system is very easy to understand and acceptable to almost all employees

without hesitation.

One strong point in favor of the method is that it takes into account all thefactors that a job

comprises. This system can be effectively used for a variety of jobs.

The weaknesses of the job classification method are:

Even when the requirements of different jobs differ, they may be combined

into a single

category, depending on the status a job carries.

It is difficult to write all-inclusive descriptions of a grade.

The method oversimplifies sharp differences between different jobs and

different grades.

When individual job descriptions and grade descriptions do not match well,

the

evaluators have the tendency to classify the job using their subjective

judgments.Factor Comparison MethodA more systematic and scientific method of job evaluation is the factor

comparison method.

Under this method, instead of ranking complete jobs, each job is rankedaccording to a series of

factors. These factors include mental effort, physical effort, skill needed,

supervisory

responsibility, working conditions and other relevant factors. Pay will be

assigned in this methodby comparing the weights of the factors required for each job, i.e., the present

wages paid for key

jobs may be divided among the factors weighed by importance (the most

important factor, for

instance, mental effort, receives the highest weight). In other words, wages are

assigned to the

job in comparison to its ranking on each job factor.

Point method

This method is widely used currently. Here, jobs are expressed in terms of keyfactors. Points are


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assigned to each factor after prioritizing each factor in the order of importance.

The points are

summed up to determine the wage rate for the job. Jobs with similar point totals

are placed in

similar pay grades.6.) RECRUITMENTRecruitment is defined as, a process to discover the sources of manpower to

meet the

requirements of the staffing schedule and to employ effective measures for

attracting that

manpower in adequate numbers to facilitate effective selection of an efficientworkforce.

PURPOSE: Determine the present and future requirements of the organization in

conjunction with its

personnel-planning and job-analysis activities.

Increase the pool of job candidates at minimum cost.

Help increase the success rate of the selection process by reducing the number

of visibly,

under qualified or overqualified job applicants.

Help reduce the probability that job applicants, once recruited and selected,

will leave the

organization only after a short period of time.

Begin identifying and preparing potential job applicants who will beappropriate candidates.

Induct outsiders with a new perspective to lead the company.

Infuse fresh blood at all levels of the organization.

Develop an organizational culture that attracts competent people to thecompany.

Search for talent globally and not just within the company.

SOURCES OF RECRUITMENT:The sources of recruitment may be broadly divided into two categories:

1) INTERNAL SOURDES 2) EXTERNAL SOURCES.Both have their own merits and demerits.

INTERNAL SOURCES:Persons who are already working in an organization constitute the internal

sources.

Retrenched employees, retired employees, dependents of deceased employees

may also

constitute the internal sources. Whenever any vacancy arises, someone fromwithin the

organization is upgraded, transferred, promoted or even demoted.EXTERNAL SOURCES:


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External sources lie outside an organization. Here the organization can

have the services of:

(a) Employees working in other organizations;

(b) Jobs aspirants registered with employment exchanges;

(c) Students from reputed educational institutions;(d) Candidates referred by unions, friends, relatives and existing employees;(e) Candidates forwarded by search firms and contractors;

(f) Candidates responding to the advertisements, issued by the organization.

7.) SELECTION:Selection is the process of picking individuals who have

relevant qualifications to fill jobs in an organisation.The basic purpose is to choose the individual who can

most successfully perform the job from the pool of qualified candidates.

The size of the labour market, the image of the company, the place of posting,

the nature of

job, the compensation package and a host of other factors influence the manner

of aspirants

are likely to respond to the recruiting efforts of the company. Through the

process of

recruitment the company tries to locate prospective employees and encourages

them to apply

for vacancies at various levels. Recruiting, thus, provides a pool of applicants

for selection.

PURPOSE:The purpose of selection is to pick up the most suitable candidate who would

meet the

requirements of the job in an organisation best, to find out which job applicant

will be successful,if hired. To meet this goal, the company obtains and assesses information about

the applicants in

terms of age, qualifications, skills, experience, etc. the needs of the job are

matched with the

profile of candidates.THE PROCESS:Selection is usually a series of hurdles or steps. Each one must be successfully

cleared before the

applicant proceeds to the next one. The time and emphasis place on each step

will definitely vary

from one organisation to another and indeed, from job to job within the same

organisation.

Types of interviews:

Several types of interviews are commonly used depending on the nature andimportance of the


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position to be filled within an organization.

In a non directive interview the recruiter asks questions as they come to mind.

There is no

specific format to be followed.

In a patterned interview, the employer follows a pre-determined sequence ofquestions. Herethe interviewee is given a special form containing questions regarding his

technical competence,

personality traits, attitudes, motivation, etc.

In a structured or situational interview, there are fixed job related questions

that are presentedto each applicant.

In a panel interview several interviewers question and seek answers from

one applicant.

The panel members can ask new and incisive questions based on their expertise

and experience

and elicit deeper and more meaningful expertise from candidates.

Interviews can also be designed to create a difficult environment where the

applicants

confidence level and the ability to stand erect in difficult situations are put to

test. These are

referred to as the stress interview.

This is basically an interview in which the applicant is made uncomfortable by a

series of, often,rude, annoying or embarrassing questions.

Steps in interview process:Interview is an art. It demands a positive frame of mind on part of the

interviewers. Interviewersmust be treated properly so as to leave a good impression about the company in

their minds. HR

experts have identified certain steps to be followed while conducting interviews:

Establishing the objective of the interview

Receiving the candidates application and resume Keeping tests score ready, along with interview assessment forms

Selecting the interview method to be followed

Choosing the panel of experts who would interview the candidates

Identifying proper room for environment

8.) PLACEMENT:It means assigning suitable jobs to selected candidates so as to match employees

qualificationwith job requirement

Placement is a process of assigning a specific job to each of the selectedcandidates. It involves


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assigning a specific rank and responsibility to an individual. It implies matching

the requirements

of a job with the qualifications of the candidate.

The significances of placement are as follows: -

1) It improves employee morale.2) It helps in reducing employee turnover.3) It helps in reducing absenteeism.

4) It helps in reducing accident rates.

5) It avoids misfit between the candidate and the job.

6) It helps the candidate to work as per the predetermined objectives of the

organization.

9.) INDUCTION:It involves familiarizing the new employees with company, the work

environment and existing

employees so that the new people feel at home. Once an employee is selected

and placed on an

appropriate job, the process of familiarizing him with the job and the

organization is known as

induction.

Induction is the process of receiving and welcoming an employee when he first

joins the

company and giving him basic information he needs to settle down quickly and

happily and stars

work.Induction is designed to achieve following objectives: -1) To give new comer necessary information.

2) To build new employee confidence in the organization.

3) It helps in reducing labor turnover and absenteeism.4) It reduces confusion and develops healthy relations in the organization.

5) To ensure that the new comer do not form false impression and negative

attitude towards the

organization.

6) To develop among the new comer a sense of belonging and loyalty to theorganization.

7) To help the new comer to overcome his shyness and overcome his shyness

nervousness in

meeting new people in a new environment.

The advantages of formal induction are: -1) Induction helps to build up a two-way channel of communication between

management andworkers.

2) Proper induction facilitates informal relation and team work amongemployee.


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3) Effective induction helps to integrate the new employee into the organization

and to develop a

sense of belonging.

4) Induction helps to develop good relation.

5) A formal induction programme proves that the company is taking interest ingetting him off togood start.

6) Proper induction reduces employee grievances, absenteeism and labor

turnover.

7) Induction is helpful in supplying information concerning the organization,

the job andemployee welfare facilities.

A formal induction programme should provide following information:1) Brief history and operations of the company.

2) The companys organization structure.

3) Policies and procedure of the company.

4) Products and services of the company.

5) Location of department and employee facilities.

6) Safety measures.

7) Grievances procedures.

8) Benefits and services of employee.

9) Standing orders and disciplinary procedures.

10) Opportunities for training, promotions, transfer etc.

11) Suggestion schemes.12) Rules and regulations

10.) PERFORMANCE APPRAISAL:It refers to employers systematic evaluation of employees with respect to their

performance onthe job and their potential for development

Performance appraisal means evaluating an employees current or past

Performance to certain

performance standards.

Appraisal involves:(i) Setting work standards (ii) Assessing the employees actual performance

relative to these

standards (iii) Providing feedback to the employees with the aim of motivating

that person to

eliminate deficiencies or to continue to perform above par.

Managers usually conduct the appraisal using a predetermined and formal

method.Various methods of appraisal include:-

a) Graphic rating scale method.b) Alternate ranking method


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c) Paired comparison method

d) Forced distribution method

e) Critical incident method

f) Narrative forms

g) Behaviorally anchored rating scalesh) Management by objective (MBO)i) 360 degree feedback.

Graphic rating scale method:- The graphic rating scale method is the simplest

and most

popular technique for appraising performance. A graphic rating scale lists traits

(such as qualityand reliability) and a range of performance values (from unsatisfactory to

outstanding) for each

trait. Subordinates are rated by circling of checking the score that best describes

his or her

performance for each trait. Then the total of assigned value is calculated.

Alternate ranking method: - This method involves ranking employees from

best to worst on a

particular trait, choosing highest, then lowest until all are ranked.

Since it is easier to distinguish between the worst and best employees and

alternate ranking is

quite popular. First, list all subordinates to be rated. Then indicate the employee

who is the

highest on the characteristic being measured and also the one who is lowest.The process

continues till all the employees are ranked on similar fashion.

Paired comparison method: - Paired comparison method helps make the

ranting method moreprecise. For every trait (quality of work, quality etc), Pairs are made and every

subordinate is

compared with every other subordinate.

Forced distribution method: - Forced distribution method is similar to grading

on a curve.With this method, manager place predetermined percentage or rates in to

performance categories.

For example you may decide to distribute employees as follows:

15% high performance

20% High average performance

30% average performance

20% low average performance15% low performance

Forced distribution means tow things for employee: Not everyone can get anA; and ones performance is always rated relative to ones peers. One


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practical, one practical, if low-tech, way to do this is to write each

employees name on a separate index card. Then for each trait managers place

the

employees card in the appropriate performance category.

Critical Incident Method: - Critical incident method involves keeping a recordof uncommonlygood or undesirable examples of an employees work related behavior and

reviewing it with the

employee at predetermined time.

Narrative Forms: - The final written appraisal is often in narrative form. A

persons supervisoris asked (i) to rate the employees performance for each performance factor or

skill (ii) to write

down examples and (iii) an important plan. This aids the employee to

understand where his or

her performance was good or bad and how to improve that performance.

Behaviorally Anchored Rating Scales is an appraisal method that aims at

combining the

benefits of narrative critical incidents and quantified ratings by anchoring a

quantified scale with

specific narrative example of good and poor performance.

11.) TRANING:

It is the process by which employees learn knowledge skills and attitudes to

furtherorganizational and personal goals.

In general, education is 'mind preparation' and is carried out remote from the

actual work area,

training is the systematic development of the attitude, knowledge, skill patternrequired by a

person to perform a given task or job adequately and development is 'the growth

of the

individual in terms of ability, understanding and awareness'.

Within an organization all three are necessary in order to: Develop workers to undertake higher-grade tasks;

Provide the conventional training of new and young workers (e.g. as

apprentices, clerks,

etc.);

Raise efficiency and standards of performance;

Meet legislative requirements (e.g. health and safety);

Inform people (induction training, pre-retirement courses, etc.);Training and development managers and specialists create, procure, and

conduct training and


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development programs for employees. Increasingly, executives recognize that

training offers a

way of developing skills, enhancing productivity and quality of work, and

building worker

loyalty.Enhancing employee skills can increase individual and organizational

performance and help to

achieve business results. Increasingly, executives realize that developing the

skills and

knowledge of its workforce is a business imperative that can give them a

competitive edge inrecruiting and retaining high quality employees and can lead to business growth.

Other factors involved in determining whether training is needed include the

complexity of the

work environment, the rapid pace of organizational and technological change,

and the growing

number of jobs in fields that constantly generate new knowledge and, thus,

require new skills. In

addition, advances in learning theory have provided insights into how people

learn and how

training can be organized most effectively.

Training managers oversee development of training programs, contracts, and

budgets. They may

perform needs assessments of the types of training needed, determine the bestmeans of

delivering training, and create the content. They may provide employee training

in a classroom,

computer laboratory, or onsite production facility, or through a training film,Web video-ondemand,

or self-paced or self-guided instructional guides. For computer-assisted or

recorded

training, trainers ensure that cameras, microphones, and other necessary

technology platformsare functioning properly and that individual computers or other learning devices

are configured

for training purposes. They also have the responsibility for the entire learning

process, and its

environment, to ensure that the course meets its objectives and is measured and

evaluated to

understand how learning impacts performance.Training specialistsplan, organize, and direct a wide range of training activities.

Trainers consult


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with training managers and employee supervisors to develop performance

improvement

measures, conduct orientation sessions, and arrange on-the-job training for new

employees. They

help employees maintain and improve their job skills and prepare for jobsrequiring greater skill.They work with supervisors to improve their interpersonal skills and to deal

effectively with

employees. They may set up individualized training plans to strengthen

employees existing

skills or teach new ones. Training specialists also may set up leadership orexecutive

development programs for employees who aspire to move up in the

organization. These

programs are designed to develop or groom leaders to replace those leaving

the organization

and as part of a corporate succession plan.

Trainers also lead programs to assist employees with job transitions as a result

of mergers or

consolidation, as well as retraining programs to develop new skills that may

result from

technological changes in the work place.

In government-supported job-training programs, training specialists serve as

case managers andprovide basic job skills to prepare participants to function in the labor force.

They assess the

training needs of clients and guide them through the most appropriate training.

After training,clients may either be referred to employer relations representatives or receive

job placement

assistance.

It is the process of developing managerial talent through programs.

12.) DEVELOPMENT:It covers not only those activities, which improve job performance, but also

those which bring

about growth of the personality; help individuals in the progress towards

maturity and

actualization of their potential capacities so that they become not only good

employees but better

men and woman. In organisational terms, it is intended to equip persons to earnpromotion and

hold greater responsibility. Training a person for higher and bigger job isdevelopment. And this


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may well include not only imparting specific skills and knowledge but also

inculcating certain

personality and mental attitudes.

There is more emphasis on choosing management development methods that

are moreorganizationally relevant and effective that they have been in the past. Varioustechniques of

management development include:-

(a) Management on-the-job training.

(b) Off the job training.

Managerial on-the-job training methods include job-rotation,coaching/understudy approach

and action learning.

Job rotation means moving management trainees from department to

broaden their understanding of all part of the business and to test their

abilities.

A manager may spend several months in each department. The person may just

bean observer in

each department but more commonly gets fully involved in its operations.

Coaching/understudy approach: Here the person workers directly with the

senior manager or

with the person he or she is to replace; the latter is responsible for the executive

of certain

responsibilities, giving the trainee a chance to learn the job.Action learning programmers give managers and others released time to work

full time on

projects, analysis and solving problems in departments other than their own

trainees meetperiodically in four or five person project groups to discuss their findings.

Several trainees may

work together as a project group or compare notes and discuss each others

projects.

Off the job training and development techniquesThe off the job development techniques for managers include case study

method; management

games; role playing etc.

Case Study method: - Case study method presents a trainee with a written

description of an

organisational problem. The person then analyzes the case, diagnoses the

problem and presentshis or her findings and solutions in discussion with other trainees.

Management Games: - With management games trainees are dividend in togive or six persons


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group, each of which competes with the others in a stimulated marketplace.

Management games

can be good development tools. People learn best by getting involved, and the

games can be

useful for gaining such involvement. They help trainee develop their problemsolving skills, aswell as to focus attention on planning rather than just putting out fires. The

group also usually

elects their own officers and organize themselves; they can thus develop

leadership skills and

faster cooperation and team work.

Roll Playing: - The aim of role playing is to create a realistic situation and then

have the trainees

assume the role of specific persons in that situation. When combined with the

general instruction

and other roles for the exercise, role playing can trigger spirited discussions

among the role

player trainees. The aim is to develop trainees skills in areas like leadership and

delegation.

13.) COMPENSATION: -It refers to fair and equitable remuneration to employees for their contribution to

the attainment

of organizational objectives.

Compensation is all forms of financial returns and tangible services and benefitsemployees

receive as part of an employment relationship. An effective set of choices about

compensation

systems plays a major role in determining firm performance. It is paid in formof wages, salaries,

and employee benefits such as paid vacations, insurance, maternity leave, free

travel facility,

retirement benefits etc. monetary payments are a direct form of compensating

employees & havea great impact in motivating employees. The system of compensation should be

designed in such

a way that it achieves following objectives:

(1) Capable employees are attracted towards organisation.

(2) Employees are motivated for better performance.

(3) Employees do not leave employer frequently.

It consists of:

a) Wages and salary administration

Base compensation includes monetary benefits to employees in form of wagesor salaries. The


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term wage is used to denote remuneration to workers doing manual or

physical work.

Thus wages are given to compensate the unskilled workers for their services

rendered to

organization Wages may be based on hourly, daily, weekly or even monthlybasisThe term salary means compensation to office employees, foremen, managers

& professional

& technical staff.

It is based on weekly, monthly &yearly basis. Thus time period for which

salaries are paid isgenerally higher than in case of wage payments.

Wages may be based on number of units produced (i.e. piece wage system) or

time spent on job.

But salary is always based on time spent on job.

Factors determining pay rates:1) Demand and supply: - Wage rates of workers depends upon demand and

supply force in

labour market. If the labour is in short supply, the workers will offer the

services only if they are

paid well. On the other hand, if the supply is more then workers available might

get ready work

at cheaper rates.

2) Bargaining Power: - Where labour unions are strong enough to force thehand of employers,

the wages will be determined at a higher level in comparison to other units

where unions are

weak.

3) Cost of living: - Wages of workers also depends upon the cost of living of

the worker so as to

ensure him a decent living wage. Cost of living varies under deflationary and

inflationary

pressures. Where labour unions are strong and employer do not show enoughawareness, here

wage are adjusted according to cost of living index numbers.

4) Condition of product market: - Degree of competitions prevailing in the

market for the

product of the industry will also influence the wage level. For e.g. if there is

perfect competition

in the market the wage level may be at par with the value of net additions madeby the workers to

the total output, but may not reach this level in case of imperfect competition inthe market.


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5) Comparative Wages: - Wages paid by the other firms for the same work

also influence the

wage levels. Wage rates must also be in consistent with the wages paid by the

other firms in the

same industry so as to increases the job satisfaction among the workers.6) Ability to Pay:- Wage rates are influenced by the paying ability of industryor firms to its

workers. Those firms which are earning huge profits may afford to pay high

wages and can

provide more facilities to its workers in comparison to the firms earning

comparatively lowprofits.

(7) Productivity of labour: - Higher productivity will automatically fetch more

profit to the

firm, where in turn workers will be paid high wages in comparison to other

firms with low

productivity.

(8) Job Requirements: - If a job requires higher skill, greater responsibility and

risk, the worker

placed on that job will naturally get higher wages in comparison to other jobs

which do not

require the same degree of skill, responsibility or risk.

(9) Govt. Policy: - Since the bargaining power of the workers is not enough to

ensure fair wagesin all industries, the Govt. has to interfere in regulating wage rate to guarantee

minimum wage

rates in order to cover the essentials of a decent living.

(10) Goodwill of the company: - A few employers want to establishthemselves as good

employer in the society and fix higher wages for their workers. It attracts

qualified employees.

In addition there are other important factors which affect the individual

differences in wage rates.These are:

1). Workers Capacity and Age

2). Educational qualification.

3). Work experience.

4). Promotion possibilities.

5). Stability of employment

6). Demand for product.7). Profits earned by the organisation.

8). Hazards involved in work etc.


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b) Employee benefits also called benefits in kind; also called fringe benefits,

perquisites, or

perks are various non-wage compensations provided to employees in addition

to their

normal wages or salaries.Some of these benefits are: housing (employer-provided or employer-paid),group insurance

(health, dental, life etc.), disability income protection, retirement benefits,

daycare, tuition

reimbursement, sick leave, vacation (paid and non-paid), social security, profit

sharing, fundingof education, and other specialized benefits. The purpose of the benefits is to

increase the

economic security of employees.

Perquisites:The term perks is often used colloquially to refer to those benefits of a more

discretionary nature.

Often, perks are given to employees who are doing notably well and/or have

seniority.

Common perks are take-home vehicles, hotel stays, free refreshments, leisure

activities on work

time (golf, etc.), stationery, allowances for lunch, andwhen multiple choices

existfirst

choice of such things as job assignments and vacation scheduling. They mayalso be given first

chance at job promotions when vacancies exist.

14.) MOTIVATION:

It is the force which instigates an employee to work in a proper direction.To retain good staff and to encourage them to give of their best while at work

requires attention

to the financial and psychological and even physiological rewards offered by

the organization as

a continuous exercise.Basic financial rewards and conditions of service (e.g. working hours per week)

are determined

externally (by national bargaining or government minimum wage legislation) in

many

occupations but as much as 50 per cent of the gross pay of manual workers is

often the result of

local negotiations and details (e.g. which particular hours shall be worked) ofconditions of

service are often more important than the basics. Hence there is scope forfinancial and other


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motivations to be used at local levels.

The motivation function is one of the most important, yet probably the least

understood,

aspects of the HRM process. Why? Because human behavior is complex and

difficult tounderstand. Trying to figure out what motivates various employees has long

been a concern

of behavioral scientists. However, research has given some important insights

into employee

motivation.

First of all, one must begin to think of motivation as a multifaceted process -one that has

individual, managerial, and organizational implications. Motivation is not just

what the

employee exhibits, but also a compilation of environmental issues surrounding

the job. It has

been proposed that one's performance in an organization is a function of two

factors: ability

and willingness to do the job. Thus, from a performance perspective, employees

need to have

the appropriate skills and abilities to adequately do the job. This should have

been

accomplished in the first two phases of HRM, by correctly defining the

requirements of thejob, matching applicants to those requirements, and training the new employee

on how to do

the job.

But there is also another concern, which is the job design itself. If jobs arepoorly designed,

poorly laid out, or improperly described, employees will perform below their

capability.

Consequently, HRM must look at the job. Has the latest technology being

provided in orderto permit maximum efficiency? Is the office setting appropriate (properly lit and

adequately

ventilated, for example) for the job?

Are the necessary tools readily available for the employee use? For example,

If an employee

prints on a laser printer throughout the day, and the printer is networked to a

station twofloors up, that employee is going to be less productive that one who has a

printer on his desk.


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While not trying to belittle the problem with such an example, the point should

be clear.

Office automation and Industrial engineering techniques must be incorporated

into the job

design. Without such planning, the best intention of managers to motivateemployees may belost or significantly reduced.

Once the measures have been taken to ensure that jobs have been properly

designed, the next

step in the motivation process is to understand the implications of motivational

theories.Some motivational theories are well known by practicing managers, but recent

motivation

research has given us new and more valid theories for understanding what

motivates people

at work. Performance standards for each employee must also be set. While no

easy task,

managers must be sure that the performance evaluation system is designed to

provide

feedback to employees regarding their past performance, while simultaneously,

addressing

any performance weakness the employee may have.

15.) JOB SATISFACTION:

It is the amount of satisfaction and contentment derived from ones job, its payand environment.

Job satisfaction describes how content an individual is with his or her job. The

happier people

are within their job, the more satisfied they are said to be. Job satisfaction is notthe same as

motivation, although it is clearly linked. Job design aims to enhance job

satisfaction and

performance.

Methods include job rotation, job enlargement and job enrichment. Otherinfluences on

satisfaction include the management style and culture, employee involvement,

empowerment and

autonomous work groups. Job satisfaction is a very important attribute which is

frequently

measured by organizations. The most common way of measurement is the use

of rating scaleswhere employees report their reactions to their jobs. Questions relate to rate of

pay, work


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responsibilities, variety of tasks, promotional opportunities the work itself and

co-workers. Some

questioners ask yes or no questions while others ask to rate satisfaction on 1-5

scale (where 1

represents "not at all satisfied" and 5 represents "extremely satisfied").In todays world, it is naive to assume that people workprimarily to achieve

professional

fulfillment and job satisfaction. As a matter of fact, they seem to work because

what they get on

the job enables them to achieve whatever they want to achieve off the job.

Todays typical professional may no longer have an undivided loyalty andcommitment towards

his job. Therefore, it is incorrect to believe that an employees work life is spent

entirely in the

pursuit of job satisfaction. Perhaps, he or she is not actively seeking job

satisfaction as much as

aspiring towards other important needs and considerations like own career

progression, standard

of living and personal fulfillment. The job is a means to achieving the desired

ends.

One of the typical propositions held by most people connected with HR is that

job satisfaction is

positively associated with job performance. Does a satisfied employee always

producemore? It may be wrong to presume and take for granted a fictitious linkage

between job

satisfaction and employee productivity in all cases.

In some cases, one may be shocked to find that while the so-calledsatisfaction was increasing,

the productivity of the individual was declining. The reason behind this is the

mistaken concept

that a satisfied employee will devote his dedicated attention to his work.

A satisfied or happy employee may begin to develop an approach of self-complacency, and

an overall sense of well-being, and consequently, his temperament may become

one of ignorant

submission and passivity rather than one of positive action and active

involvement. As a result, it

is not too uncommon to see that the productivity of the employee does not

always closely followhis upward satisfaction curve.

16.) GRIEVANCE REDRESSAL:


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Various problems and conflict which are amongst the employees should be

properly and

cordially handled. A grievance is a sign of an employee's discontentment with

his job or his

relationship with his colleagues. Grievances generally arise out of the day-to-day workingrelations in an organization. An employee or a trade union protests against an

act or policy of the

management that they consider as violating employee's rights.

One of the effective ways of minimizing and eliminating the source of an

employee's grievanceis by having an open door policy'.

An open door policy facilitates upward communication in the organization

where employees

can walk into a superiors cabin at any time and express their grievances.

17.) CONFLICT MANAGEMENT:It refers to effective and efficient management of conflict arising in the

organization. How is the

idea of conflict management related to Human Resource Management? The

answer to this

question is much simpler than one may think. In a broad sense, the Human

Resource Department

of all business organizations has one primary task: to deal with the people in the

organization.More specifically however, it is HR's job to ensure that productivity, efficiency,

safety, fairness,

and smooth practices are executed both inside and outside of the organization.

With that said successful conflict management techniques are essential to ensurethat both the

broad and specific duties of a Human Resource Department are carried out.

Since all people are different, each individual has different experiences and

possess unique

perspectives. Consequently, different perspectives potentially lead to biases ordifferences in

opinion and these discrepancies are what essentially cause conflict. Some

conflicts are

insignificant compared to others but nonetheless, managing even the smallest

conflicts is no easy

task. However, several successful conflict management techniques can be

utilized at all levels ofan organization in order to ensure that efficiency, safety, fairness, and smooth,

ethical businesspractices are executed.


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One common misconception about conflict in general is that all conflict is bad.

However, this is

not the case in the business setting. Although, if individuals are physically

injuring one another

and putting their safety and the safety of others at risk via this particularconflict, then it is safe tosay that "physical" conflict and altercations are undesirable. The bottom line

from a business

perspective is that "healthy" conflict is desirable in any organization. "Healthy"

conflict merely

shows that people are not holding back their ideas and beliefs. Furthermore, themore ideas and

perspectives that are brought to the table, the more opportunity managers have

to make good,

well informed decisions that look at various issues from all angles. An

important concept for

managers to remember when faced with conflict is that conflict is neither good

nor bad; it is

merely a difference in opinion.

18.) PARTICIPATIVE MANAGEMENT:

Participation of employees: Employees should be given a chance to participate

in the working

of the firm. Their suggestion should be taken into consideration.

Worker participation in management is an effective tool for prevention ofindustrial disputes.

The level of workers participation can vary from organization to organization.

The basic

objective of worker participation is to provide an opportunity to the workers toparticipate in the

organizational decision-making.

By virtue of their participation, employees are bound to abide by all the

decisions taken. This

also helps in boosting the employee morale and enhancing their commitment tothe organization.

Some of the common forms of worker participation in management in India are

works

committees, joint management councils, joint councils, plant councils, shop

councils etc.

Worker participation in India has achieved only partial success due to factors

like lack of propereducation among workers, lack of understanding between the management and

the workers and


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multi-unionism. A good organizational environment built on mutual trust and

confidence

between the management and the workers would help in effective and

successful worker

participation in management.19.) HEALTH, SAFETY and WELFARE

HEALTH:The well- being of the employee in an organization is affected by accidents and

ill healthboth

physical and mental.

PHYSICAL HEALTH: Ill health of employees results in reduced productivity.Healthy

employees are more productive, more safety conscious, and are more regular to

work. This

realization has made many management to provide health services to their

employees like firstaid,

complete medical care, etc. Many progressive organizations have well equipped

dispensaries

with full-time and part-time doctors.

MENTAL HEALTH: In recent years, mental health of employees, particularly

that of

executives, has engaged the attention of management. Mental breakdowns are

common in

modern days because of stress and tension. This results in reduced productivityand lower profits

for the organization. A mental health service is rendered in following ways:

1. Psychiatric counseling

2. Co operation and consultation with outside psychiatrics3. Education of company personnel in importance of mental health

4. Development and maintenance of effective human resource programme.

SAFETY:Safety refers to absence of accidents. It is protection of workers from the

dangers of accidents.NEED FOR SAFETY MEASURES

COST SAVING: Two types of cost are incurred by the management when an

accident occurs.

These are direct costs in form of compensation payable and medical expenses

incurred in treating

the patients.

INCREASED PRODUCTIVITY: Safety promotes productivity. Employees ina safe

environment can devote time to improving quality and quantity of output.


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MORAL and LEGAL: Safety is important on humane grounds too. There are

legal provisions

relating to safety measures which have to be undertaken by the management.

WELFARE:

Welfare includes anything that is done for the comfort and improvement ofemployees and is

provided over and above the wages. Welfare helps in keeping the morale and

motivation of the

employees high so as to retain the employees for longer duration. The welfare

measures need not

be in monetary terms only but in any kind/forms. Employee welfare includesmonitoring of

working conditions, creation of industrial harmony through infrastructure for

health, industrial

relations and insurance against disease, accident and unemployment for the

workers and their

families.

Labor welfare entails all those activities of employer which are directed towards

providing the

employees with certain facilities and services in addition to wages or salaries.

Labor welfare has the following objectives:

1. To provide better life and health to the worker

2. To make the workers happy and satisfied

3. To relieve workers from industrial fatigue and to improve intellectual,cultural and

material conditions of living of the workers.

The basic features of labor welfare measures are as follows:

1. Labor welfare includes various facilities, services and amenities provided toworkers for

improving their health, efficiency, economic betterment and social status.

2. Welfare measures are in addition to regular wages and other economic

benefits available

to workers due to legal provisions and collective bargaining3. Labor welfare schemes are flexible and ever-changing. New welfare

measures are added

to the existing ones from time to time.

4. Welfare measures may be introduced by the employers, government,

employees or by

any social or charitable agency.

5. The purpose of labor welfare is to bring about the development of the wholepersonality

of the workers to make a better workforce.PERSONNEL POLICIES


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NEED AND IMPORTANCE OF PERSONNEL POLICIES IN

INSURANCE SECTOR

The very objective of insurance is to place the insured in the same financial

position as he was

just before the loss.It can be said that the system of insurance can be explained as social andfinancial assistance to

business enterprises, financial stability to commerce and industry and basis of

credit.

The word personnel in the context of any organization imply the persons

connected with theworking of that organization or establishment or in other words the person at

work. This denotes

the staff or employees of an organization.

The term policy refers to any guidance to action. Hence policy making are

supplementary and

complementary to each other.

Personnel policy is the guideline which assists in proper working of the org. and

enables it to

achieve its various objectives.

Policies are broad guidelines as to how the objectives of a business are to be

achieved. Policies

provide the guidelines which we should keep in view while achieving the ends.

A policy is apredetermined and accepted course of thought and action to serve as a guide

towards certain

accepted objectives. In other words, we can say that policies are related to the

organizationsoverall purpose and its objectives in the various areas with which its operations

are concerned.

Personnel policies lay down the decision making criteria in line with the overall

purpose of the

organization in the area of human resource management. Personnel policies aredeveloped by the

top management to assist the managers at various levels to deal with the people

at work.

The Aims and Objectives of personnel policies should be/ are:(1) To provide such conditions of employment and procedures as will enable all

the employees

to develop a sincere sense of unity with the enterprise and to carry out theirduties in the most

willing and effective manner;


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(2) To provide an adequate, competent and trained personnel for all levels and

types of

management;

(3) To establish the conditions for mutual confidence and avoid confusion and

misunderstandingbetween the management and the workers, by developing suggestion plans, jointmanagement councils, work committees, etc., and by performance appraisal

discussions;

(4) To provide security of employment to workers so that they may not be

distracted by the

uncertainties of the future;(5) To provide an opportunity for growth within the organization to persons

who are willing to

learn and undergo training to improve their future prospects;

(6) To provide for the payment of fair and adequate wages and salary to workers

so that their

healthy co-operation may be ensured for an efficient working of the

undertaking;

(7) To recognized the work and accomplishments of the employees by offering

non- monitory

incentives; and

(8) To create a sense of responsibility, on the part of those in authority for the

claims of

employees as human beings, who should be guaranteed protections of theirfundamental rights

and offered enough scope for developing their potential.

SCOPE OF PERSONNEL POLICIES

Personnel policies must cover all areas of human resource management. Usuallypersonnel

policies are framed with regard to all functions of human resource management

as stated below:

1. Employment Policies

(i) Minimum hiring qualifications.(ii) Preferred sources of recruitment.

(iii) Reliance on various selection devices such as tests, reference checks, and

interviews.

2. Training and development policies(i) Opportunities for training and development.

(ii) Basis for training

(iii) Types of training, viz., on-the-job, off-thejob.(iv) Programmes of executive development.

3. Transfer and promotion policies(i) Rationale for transfer.


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(ii) Periodicity of transfer.

(iii) Length of service and qualifications required for promotion.

(iv) Weightage to seniority and merit in promotion.

4. Compensation Policies

(i) Minimum wages and salaries.(ii) Incentive Plans.(iii) Profit Sharing.

(iv) Non-Monetary Rewards.

5. Integration and Human Relations Policies(i) Handling of Grievances.

(ii) Recognitions of labour unions.(iii) Workers participation in management.

(iv) Discipline.

6. Working conditions and welfare policies(i) Kinds and standards of working conditions.

(ii) Safety programme.

(iii) Types of welfare services.

(iv) Financing of employee services.

IMPORTANCE OF HRM IN INSURANCE SECTORHuman resource is one of the natural resources of any country's economy. It is

the wealth of the

co

bhagyesh machhindra dongare

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