essentials of hrm - nora bhatia
TRANSCRIPT
1
Essentials of HRM
- Mrs Nora Bhatia
2
THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
3
What is HRM
bull Human resource management managing the functions of employing developing and compensating human resources resulting in the creation and development of human relations with a view to contribute proportionately to individual organizational and societal goals
4
OBJECTIVES OF HRM
bull Societal objective
To be socially responsible to the needs and challenges of society
bull Organisational objective
To recognize that HRM exists to contribute to organisational effectiveness and efficiency
bull Functional objective
To maintain the departments contribution at a level appropriate to the organisations needs
bull Personal objective
To assist employees in achieving their personal goals at least in so far as these goals enhances the individuals contribution to the organisation
5
HRM FUNCTIONS
bull Human Resource Planningbull Recruitment and Selectionbull Performance and Career Managementbull Training and Developmentbull Compensationbull Retention Attrition and Downsizing
6
HRM CHALLENGES
bull Organizational Commitment and Empowerment (power sharing at the bottom of the pyramid)
bull Organizational Learning (teams ndash learning from failure)
bull Ethical Facetsbull Workplace Diversity
7
JOB ANALYSIS AND JOB DESIGN
8
Job Analysis
bull A job analysis is the process used to collect information about the duties responsibilities necessary skills outcomes and work environment of a particular job
bull It is a procedure through which you determine the duties of the positions and the characteristics of the people to hire for them The activity of job analysis gives us two results ndash job description and job specification
9
TYPES OF INFORMATION FOR JOB ANALYSIS
bull Work activities Information on the activities requires to complete the work such as cleaning selling and recruiting
bull Human behaviours The specialist collects information about human behaviours like sensing communicating deciding and writing
bull Machines tools equipment and work aids This category includes information regarding tools used materials processed and services rendered
bull Performance standards The information on the job performance standards in terms of quantity and quality of minimum standards acceptable
bull Job context Included here is information about job conditions work schedule and organizational and social context
bull Human requirements This includes information regarding the jobrsquos human requirements such as knowledge or skills (education training experience)
10
METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
bull Personal Observation (average conditions specific job needs not job behaviors ndash preferred for manual jobs not mental aspects)
bull Critical Incidents (behaviorally focused descriptions ndash lengthy ndash dissimilar behaviors)
bull Interview (lengthy distort information)bull Questionnaire Method (economical motivating employees
to complete the questionnaire)
11
Statement of human qualification necessary to do the job includes
1048698 Education
1048698 Experience
1048698 Training
1048698 Communication skills
1048698 Emotional characteristics
1048698 Physical effort
JOB SPECIFICATION
12
USE OF JOB ANALYSIS
bull Human resource planningbull Recruitmentbull Selectionbull Training bull Counseling bull Employee safety bull Performance appraisal bull Job evaluation
13
bull It integrates the work context (tasks functions and relationships) the rewards (extrinsic and intrinsic) and the qualifications required (skills knowledge abilities) for each job in a way that meets the needs of employees and the organizations
bull Job Enlargement bull Job Enrichment bull Job Rotation
JOB DESIGN
14
Job Characteristics
Skill Variety The extent to which the work requires several different activities for successful completion
Task Identity
The extent to which the job includes a ldquowholerdquo identifiable unit of work that is carried out from start to finish and that results in a visible outcome
Task Significance The impact the job has on other people
Autonomy The extent of individual freedom and discretion in the work and its scheduling
Feedback The amount of information received about how well or how poorly one has performed
15
HUMAN RESOURCE PLANNING
16
OBJECTIVES OF HRP
1 to prevent overstaffing and understaffing
2 to ensure employee availability
3 to ensure that the organization is responsive to the environment
4 to provide direction to all HR activities and
5 to build line and staff partnership
17
bull Environmental scanning
bull Forecasting and analyzing demand for human resources
bull Forecasting and analyzing supply of human resources
bull Developing action plans to match human resource demand and supplyndash HR Supply = HR demandndash HR Supply lt HR demand (deficitshortage)ndash HR Supply gt HR demand (surplus)
PROCESS OF HRP
18
bull Qualitative Methods
ndash Estimation (Centralized ndash HR Decentralized ndash Line Mgrs
ndash Expert Opinions
(a) Delphi techniques
(b) Group brainstorming
(c) Nominal group technique
(d) Averaging
ndash Sales force estimate
TECHNIQUES OF HR DEMAND FORECASTING
19
bull Quantitative Methods
bull Trend analysis and projection
bull Simulation models (probabilities of future events to estimate future employment levels)
bull Workload analysis (Both the number of employees and the kind of employees required to achieve organizational goals are identified)
bull Markov analysis
TECHNIQUES OF HR DEMAND FORECASTING
20
ATTRACTING THE TALENT RECRUITMENT
SELECTION AND OUTSOURCING
21
Internal Sources of Recruitment
1 Transfers
2 Promotions
3 Upgrading and demotion
4 Retired and retrenched employees
5 Deceased employees and disabled employees
SOURCES OF RECRUITMENT
22
External Sources of Recruitment
bull Press advertisements bull Educational institutesbull Placement agencies bull Employment exchanges bull Labour contractorsbull Unsolicited applicants bull Employee referralsrecommendations
SOURCES OF RECRUITMENT
23
THE SELECTION PROCESS
1 Pre screening
2 Initial interview
3 Reference and other checks
4 Application forms or lsquoblanksrsquo
5 Selection testing
6 Comprehensive interview
7 Job offer
8 Medical examination
24
Interviews
I Unstructured Interview
II Situational Interview
III Behavior Description Interviews
IV Comprehensive Structured Interviews
V Structured Behavioral Interview
25
PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
1048698 Unclear role of interviewer
1048698 Unprepared interviewer
1048698 Halo effect
1048698 Snap judgement
1048698 Personal biases
1048698 Ineffective communication
1048698 Contrast effect
1048698 Reflection effect
1048698 Satisfying onersquos own needs
26
bull INDUCTION
bull OUTSOURCING
27
COMPETENCY MAPPING AND ASSESSMENT CENTRES
28
Competencies
competencies are typically defined as a combination of knowledge skills abilities and other individual characteristics that can be reliably measured and that can be shown to differentiate performance
29
VARIOUS COMPETENCY MODELS
1048698Job Competencies Assessment Model interviews and
observations of outstanding and average performers
1048698Modified Job Competence Assessment Model a written account
of critical incidents (to reduce costs)
1048698Generic Model Overlay Method off-the-shelf
1048698Customized Generic Model Method tentative list of
competencies that are identified internally
1048698Flexible Job Competency Model Method under different conditions in the future
1048698Systems Method behaviors that may be important in the
future
30
HISTORY OF ASSESSMENT CENTRES
bull 1942
bull exceptional smartness
bull War Office Selection Boards
31
MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
Types of Psychological Tests
1048698 IQAchievement tests
1048698 Situational tests Situations are given and an individualrsquos behaviorresponse is observed
1048698 Psychometric tests
1048698 Personality Questionnaire
1048698 Interest Questionnaire
1048698 Values Questionnaire
32
MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
bull The Leaderless Group Discussion (LGD)bull In-basket Exercisebull Group Exercisesbull Behavioral Event Interviews
33
Difference between Assessment Centre and Development Center
34
PERFORMANCE PLANNING AND REVIEW
35
GOALS OF PERFORMANCE APPRAISAL
1048698 Each objective should be SMART ndash specific measurable agreed realistic and time-limited
1048698 Each objective must be in an area over which the employee has control
1048698 Give each objective a deadline
1048698 A clear target allows you to measure whether the employee is making the progress you expect
1048698 Provide information to assist in the HR decisions like promotions transfers etc
36
PROCESS OF PERFORMANCE APPRAISAL
bull Establishing Performance Standards
bull Communicating the Standards
37
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
bull Broadly all methods of appraisals can be divided into two different categories
bull 1048698 Past Oriented Methodsbull 1048698 Future Oriented Methods
38
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Past Oriented Methods
1 Rating Scales Rating scales consists of several numerical scales representing job related performance criterions such as dependability initiative output attendance attitude etc Each scales ranges from excellent to poor The total numerical scores are computed and final conclusions are derived
Advantages Adaptability easy to use low cost every type of job can be
evaluated large number of employees covered no formal training required
Disadvantages Raterrsquos biases
2 Checklist Under this method checklist of statements of traits of employee in the
form of Yes or No based questions is prepared Here the rater only does the
reporting or checking and HR department does the actual evaluation
Advantages Economy ease of administration limited training required
standardization
Disadvantages Raters biases use of improper weighs by HR does not allow rater
to give relative ratings
39
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
3 Forced Choice Method The series of statements arranged in the blocks of two or more are given and the rater indicates which statement is true or false The rater is forced to make a choice HR department does actual assessment
Advantages Absence of personal biases because of forced choice
Disadvantages Statements may be wrongly framed
4 Forced Distribution Method Here employees are clustered around a high point on a rating scale Rater is compelled to distribute the employees on all points on the scale It is assumed that the performance is conformed to normal distribution
Advantages Eliminates biasness
Disadvantages Assumption of normal distribution unrealistic errors of central
tendency
40
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
5 Critical Incidents Method The approach is focused on certain critical behaviors
of employee that makes all the difference in the performance Supervisors as and
when they occur record such incidents
Advantages Evaluations are based on actual job behaviors ratings are supported
by descriptions feedback is easy reduces recency biases chances of subordinate
improvement are high
Disadvantages Negative incidents can be prioritized forgetting incidents overly
close supervision feedback may be too much and may appear to be punishment
6 Behaviorally Anchored Rating Scales Statements of effective and ineffective
behaviors determine the points They are said to be behaviorally anchored The
rater is supposed to say which behavior describes the employee performance
Advantages Helps overcome rating errors
Disadvantages Suffers from distortions inherent in most rating techniques
41
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
7 Field Review Method This is an appraisal done by someone outside employeesrsquo own department usually from corporate or HR department
Advantages Useful for managerial level promotions when comparable
information is needed
Disadvantages Outsider is generally not familiar with employees work
environment Observation of actual behaviors not possible
8 Performance Tests amp Observations This is based on the test of knowledge or skills The tests may be written or an actual presentation of skills Tests must be reliable and validated to be useful
Advantages Tests may be apt to measure potential more than actual performance
Disadvantages Tests may suffer if costs of test development or administration are high
42
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Future Oriented Methods
1 Management by Objectives It means management by objectives and the
performance is rated against the achievement of objectives stated by the
management MBO process
(a) Establish goals and desired outcomes for each subordinate
(b) Setting performance standards
(c) Comparison of actual goals with goals attained by the employee
(d) Establish new goals and new strategies for goals not achieved in previous
year
43
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Future Oriented Methods
2 Psychological Appraisals
These appraisals are more directed to assess employeersquos potential for future performance rather than the past one It is done in the form of in-depth interviews psychological tests and discussion with supervisors and review of other evaluations
It is more focused on employees emotional intellectual and motivational and other personal characteristics affecting his performance This approach is slow and costly and may be useful for bright young members who may have considerable potential However quality of these appraisals largely depend upon the skills of psychologists who perform the evaluation
44
1 Leniency amp Severity
2 Central Tendency
3 Halo Effect
4 Primacy amp Recency Effect
5 Spillover Effects
6 Status Effect
Problems of RatingRating Biases
45
PERFORMANCE COACHING
The performance coaching process involves five strategies
1 Creating a partnership role To make employees realize that both employees and manger are responsible for performance and build trust amongst them
2 Commitment Inspiring employees to be committed to the goals
3 Competency development Awareness towards developing skills and
competencies required to reach to organizational goals
4 Perseverance Developing lsquonever say diersquo attitude among organizational members
5 Shaping the environment Creating conditions for employee development
46
THE COACHING DISCUSSION
Kinlawrsquos Approach
Kinlaw suggests a three-stage approach to the coaching discussion as follows
1048698 Confronting or presenting
1048698 Using reactions to develop information
1048698 Resolving or resolution
47
THE COACHING DISCUSSION
bull Fourniesrsquo Approach
bull Step 1 Get the employeersquos agreement that a problem existsbull Step 2 Mutually discuss alternative solutions to the problembull Step 3 Mutually agree on actions to be taken to solve the problembull Step 4 Follow-up to measure resultsbull Step 5 Recognize any achievement when it occurs
48
MENTORING
bull Mentorship is a process where an experienced person provides help guidance support to nurture and develop a less experienced person referred to as a proteacutegeacute apprentice mentee or (person) It improves the self esteem of mentee and increases hisher chance for success
49
MENTORING - Kinds
1048698 New-hire mentorship
1048698 High-potential mentorship
1048698 Mentorship in Education
50
POTENTIAL APPRAISAL CAREER AND SUCCESSION
PLANNING
51
POTENTIAL APPRAISAL
Purpose of Potential Appraisal
Potential appraisal serves the following purposes
1048698 To advise employees about their overall career development and future prospects
1048698 Help the organisation to chalk out succession plans
1048698 Motivate the employees to further develop their skills and competencies
1048698 To identify the training needs
52
POTENTIAL APPRAISAL
Techniques of Potential Appraisal
1048698 Self-appraisals
1048698 Peer appraisals
1048698 Superior appraisals
1048698 MBO
1048698 Psychological and psychometric tests
1048698 Management games like role playing
1048698 Leadership exercises etc
53
CAREER PLANNING
Steps in Career Planning Process
Step One Self Assessment
Step Two Goal Setting
Step Three AcademicCareer Options
Step Four Plan of Action
Step Five Catch Hold of Opportunities
54
bull Succession Planning refers to the process of developing the second line for taking up a higher role in the organization
SUCCESSION PLANNING
55
HR MEASUREMENT AND AUDIT
bull Audit helps the organization have a clear understanding of the lacunae and better align the HR processes with Business goals
bull The audit itself is a diagnostic tool not a prescriptive instrument It helps in identifying what is missing or needs to improve It is most useful when an organization is ready to act on the findings and to evolve its HR function to play a greater strategic role
56
WHY CONDUCT AN HR AUDIT
1048698 It helps promote more professionalism and professional management
1048698 HR audit helps an organization to be aware of its present practices policies
and their adherence
1048698 Benchmarking to improve HR practices
1048698 The organization can benchmark its processes with best-in-class organizations
1048698 HR audit suggest improvement measures keeping the organizational strategic goals and vision in mind
57
THE HR AUDIT PROCESS
InterviewsQuestionnaires
The audit team interviews the following
1048698 Top Management (CEO Unit Heads)
1048698 Line Managers (eg Managers in production quality purchase and marketing)
1048698 HRD Staff
1048698 Workmen and others
Observation and Recording
Follow-up and Corrections done
58
HUMAN RESOURCE ACCOUNTING
bull The American Accounting Associationrsquos Committee on Human Resource Accounting (1973) has defined Human Resource Accounting as ldquothe process of identifying and measuring data about human resources and communicating this information to interested partiesrdquo
bull It is the measurement and reporting of the cost and value of people in organizational Resources
59
METHODS OF HUMAN RESOURCE ACCOUNTING
Methods of Valuing and Accounting of Human Resources
The methods to value and account for human resources can be classified into the following categories
1 Methods based on costs (which include costs incurred by the company to recruit hire train and develop human resources)
2 Methods based on economic value of human resources and the capitalisation of companyrsquos earnings
60
HUMAN RESOURCE ACCOUNTING
Methods based on Cost
Historical Cost Method
Under this method the cost of acquisition ie selection hiring training costs of employees are capitalised and written off over the expected useful life of the employees In case the personnel leave the company before the anticipated period of service then the unamortised portion of costs remaining in the companyrsquos books is written off against the profit and loss account in that year If the period of service exceeds the anticipated time then amortisation of costs is rescheduled
Replacement Cost Method
Under this method the human resources are valued at their replacement cost ie The monetary implications of replacing existing personnel
Standard Cost Method
Under this method standard costs of recruiting hiring training and developing per grade of employees are determined annually The total standard cost for all personnel of the company is the value of human resources
61
HUMAN RESOURCE ACCOUNTING
bull HR Accounting based on Value
bull Economic Value Method
bull Under this method the net present value of incremental cash flows attributed to human resources is taken as the asset value
62
HUMAN RESOURCE INFORMATION SYSTEMS(HRIS)
bull An information system may be automated or manual and involves collectingprocessing transmitting and disseminating data that represents user information
63
HRIS ndash APPLICATION AND UTILITIES
Personnel administration It will encompass information about each employee
such as name address personal details etc
1048698 Salary administration Generate personnel cost reports conduct lsquowhat if
analysisrsquo provide compensation history
1048698 Leave and absence recording Essentially being able to provide comprehensive
method of tracking absences late coming reports on excess leave availed leave
lapsed
1048698 Skill inventory Recording of acquired skills and monitor the skill database at the
employee and organisational level
1048698 Performance appraisal The system should record individual employee
performance appraisal data such as appraisal ratings due date of appraisal
training needs identified during the appraisal process
1048698 Recruitment Record recruitment cost lead time to fill a vacant position
recruitment methods applicant and resume management
1048698 Career planning HRIS System can provide succession plan reports identifying
employees earmarked for future position
64
HRIS ndash DISADVANTAGES
May be expensive ndash financing the technology
1048698 Thorough understanding of what constitutes quality information for the user
1048698 Computer cannot substitute human beings
HUMAN RESOURCE DEVELOPMENT SYSTEM
66
HRD
HRD play a very crucial role in organization Henery Ford once said ldquotake out my building take out my machines take out all capital but leave my men with me and I will become Henry Ford againrdquo HRD is considered as key to higher productivity better relations and greater profitability for any organization
According to Daftur
ldquoHRD is a system and process concerned with an organized series of learning activities within specified time limits designed to produce behavioral changes in the learner in such a way that it acquires desired level of competence for present or future rolerdquo
67
HRDORGANIZATION ALIGNMENT MODEL
TRAINING AND DEVELOPMENT
69
NEED FOR TRAINING AND DEVELOPMENT
bull Technological advances bull Organizational complexity bull Organizational tenure bull Human relations movement
70
THE TRAINING PROCESS
71
Needs Assessment
72
bull Lecturesbull Audio Visualsbull On-the-job Training (OJT)bull Programmed Instructionbull Computer Assisted Instruction (CAI)bull Simulation
Methods and Techniques of Training
73
Training Methods for Management Development
1048698 Seminars and Conferences
1048698 Case Study
1048698 Role Playing
1048698 Management Games
1048698 Sensitivity Training
74
bull Implementation of the Training Program
bull Evaluation of Training Program
75
Kirkpatrick Model for Evaluating Effectiveness of Training Programs
1 Reactions
2 Learning
3 Behaviors
Results or Return on Investment (ROI)
76
SPECIAL TOPICS IN TRAINING ANDDEVELOPMENT
bull Cross-cultural Training
bull Orientation Training
bull Team-training and Cross-training
bull Diversity Training
COMPENSATION AND REWARDS
78
COMPENSATION OVERVIEW
Compensation is the process of directly and indirectly rewarding employees on a current or deferred basis for their performance of assigned tasks It consists of
1048698 Direct Financial Compensation Wages salaries bonuses commissions
1048698 Indirect Financial Compensation All financial rewards not included in direct compensation (benefits)
1048698 Non-financial Compensation Satisfaction received from the job or from the psychological andor physical environment of the job
JOB EVALUATION TECHNIQUE
The general step-wise procedure for job evaluation is as under
1 Select the group of jobs
2 Study the job (job analysis)
3 Prepare job description ndash approval
4 Device an evaluation plan ndash common characteristicstraits
5 Establish a committee of raters and rateevaluate
6 Group or classify the jobs
7 Convert job grades to money value along with Wage survey
8 Obtain approval from Union and Management
9 Establish a suitable grievance procedure
COMPONENTS OF COMPENSATION SYSTEM
1 Basic WagesSalaries
2 Dearness Allowance
3 Bonus
4 Commissions
5 Mixed Plans
6 Piece Rate Wages
7 Sign on Bonuses
8 Profit Sharing Payments
9 Fringe Benefits
COMPENSATION EQUITY
1048698 External Equity Employees are paid comparably to those who perform similar jobs in other industries
1048698 Internal Equity Employees are paid according to relative value of their jobs within an organisation
1048698 Employee Equity Individuals performing similar jobs for the same firm are rewarded according to factors unique to the employee such as performance level or seniority
1048698 Team Equity More productive teams receive greater rewards than less productive groups
INTERNATIONAL COMPENSATION
Elements of Expatriate Compensation
Basic Pay Amount of money that an expatriate receives from home country Used for
Bonus calculation
Benefits
1048698 One third of compensation
1048698 Extra vacation special leaves air fares for their families for an annual visit home
emergency leaves
1048698 Housing
1048698 Utilities ndash air conditioner bottled water electricity telephone call expenses
1048698 Car ndash car expenses chauffeur hired vehicle
Helping hands servants gardeners security
1048698 Club subscription
1048698 Educational benefits
Allowances
1048698 COLA ndash cost of living between home country and foreign country inflation
1048698 Relocation allowances
1048698 Hardship allowances
1048698 Separation allowances
1048698 Clothing allowances ndash very cold climates
1048698 Home leave allowances
1048698 Spouse assistance allowances
REWARDS SYSTEM
Reward System as Followed by Organisations
1 Incentive and Rewards
2 Competency Related Pay
3 Skill Based Pay
4 Team Based Rewards
5 Profit Sharing
7 Employee Ownership
8 Statutory and Voluntary Benefits
FORMS OF RECOGNITION
Examples of Formal Recognition
1 Milestone Service Anniversary Awards (5101520 25 years of service)
2 Ideas Improvement amp Performance Awards
3 Service Awards
a) Teamworkleadership
b) Customer Service
c) Citizenship
d) Innovation
e) Attendance
4 Awards would include
a) PlaquesDesk trophies
b) Certificates
c) GiftsCertificates
d) Picture in the webpage
FORMS OF RECOGNITION
Examples of Informal Recognition
1 Team Building Retreats
2 Acknowledgement of DeptDivision goals achieved
3 Project Completion meals
4 Birthday cakes and cards
5 Picnics
6 Staff Appreciation Day
7 Holiday Parties
8 Dress-up Days
9 Corporate Merchandise
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-
2
THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
3
What is HRM
bull Human resource management managing the functions of employing developing and compensating human resources resulting in the creation and development of human relations with a view to contribute proportionately to individual organizational and societal goals
4
OBJECTIVES OF HRM
bull Societal objective
To be socially responsible to the needs and challenges of society
bull Organisational objective
To recognize that HRM exists to contribute to organisational effectiveness and efficiency
bull Functional objective
To maintain the departments contribution at a level appropriate to the organisations needs
bull Personal objective
To assist employees in achieving their personal goals at least in so far as these goals enhances the individuals contribution to the organisation
5
HRM FUNCTIONS
bull Human Resource Planningbull Recruitment and Selectionbull Performance and Career Managementbull Training and Developmentbull Compensationbull Retention Attrition and Downsizing
6
HRM CHALLENGES
bull Organizational Commitment and Empowerment (power sharing at the bottom of the pyramid)
bull Organizational Learning (teams ndash learning from failure)
bull Ethical Facetsbull Workplace Diversity
7
JOB ANALYSIS AND JOB DESIGN
8
Job Analysis
bull A job analysis is the process used to collect information about the duties responsibilities necessary skills outcomes and work environment of a particular job
bull It is a procedure through which you determine the duties of the positions and the characteristics of the people to hire for them The activity of job analysis gives us two results ndash job description and job specification
9
TYPES OF INFORMATION FOR JOB ANALYSIS
bull Work activities Information on the activities requires to complete the work such as cleaning selling and recruiting
bull Human behaviours The specialist collects information about human behaviours like sensing communicating deciding and writing
bull Machines tools equipment and work aids This category includes information regarding tools used materials processed and services rendered
bull Performance standards The information on the job performance standards in terms of quantity and quality of minimum standards acceptable
bull Job context Included here is information about job conditions work schedule and organizational and social context
bull Human requirements This includes information regarding the jobrsquos human requirements such as knowledge or skills (education training experience)
10
METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
bull Personal Observation (average conditions specific job needs not job behaviors ndash preferred for manual jobs not mental aspects)
bull Critical Incidents (behaviorally focused descriptions ndash lengthy ndash dissimilar behaviors)
bull Interview (lengthy distort information)bull Questionnaire Method (economical motivating employees
to complete the questionnaire)
11
Statement of human qualification necessary to do the job includes
1048698 Education
1048698 Experience
1048698 Training
1048698 Communication skills
1048698 Emotional characteristics
1048698 Physical effort
JOB SPECIFICATION
12
USE OF JOB ANALYSIS
bull Human resource planningbull Recruitmentbull Selectionbull Training bull Counseling bull Employee safety bull Performance appraisal bull Job evaluation
13
bull It integrates the work context (tasks functions and relationships) the rewards (extrinsic and intrinsic) and the qualifications required (skills knowledge abilities) for each job in a way that meets the needs of employees and the organizations
bull Job Enlargement bull Job Enrichment bull Job Rotation
JOB DESIGN
14
Job Characteristics
Skill Variety The extent to which the work requires several different activities for successful completion
Task Identity
The extent to which the job includes a ldquowholerdquo identifiable unit of work that is carried out from start to finish and that results in a visible outcome
Task Significance The impact the job has on other people
Autonomy The extent of individual freedom and discretion in the work and its scheduling
Feedback The amount of information received about how well or how poorly one has performed
15
HUMAN RESOURCE PLANNING
16
OBJECTIVES OF HRP
1 to prevent overstaffing and understaffing
2 to ensure employee availability
3 to ensure that the organization is responsive to the environment
4 to provide direction to all HR activities and
5 to build line and staff partnership
17
bull Environmental scanning
bull Forecasting and analyzing demand for human resources
bull Forecasting and analyzing supply of human resources
bull Developing action plans to match human resource demand and supplyndash HR Supply = HR demandndash HR Supply lt HR demand (deficitshortage)ndash HR Supply gt HR demand (surplus)
PROCESS OF HRP
18
bull Qualitative Methods
ndash Estimation (Centralized ndash HR Decentralized ndash Line Mgrs
ndash Expert Opinions
(a) Delphi techniques
(b) Group brainstorming
(c) Nominal group technique
(d) Averaging
ndash Sales force estimate
TECHNIQUES OF HR DEMAND FORECASTING
19
bull Quantitative Methods
bull Trend analysis and projection
bull Simulation models (probabilities of future events to estimate future employment levels)
bull Workload analysis (Both the number of employees and the kind of employees required to achieve organizational goals are identified)
bull Markov analysis
TECHNIQUES OF HR DEMAND FORECASTING
20
ATTRACTING THE TALENT RECRUITMENT
SELECTION AND OUTSOURCING
21
Internal Sources of Recruitment
1 Transfers
2 Promotions
3 Upgrading and demotion
4 Retired and retrenched employees
5 Deceased employees and disabled employees
SOURCES OF RECRUITMENT
22
External Sources of Recruitment
bull Press advertisements bull Educational institutesbull Placement agencies bull Employment exchanges bull Labour contractorsbull Unsolicited applicants bull Employee referralsrecommendations
SOURCES OF RECRUITMENT
23
THE SELECTION PROCESS
1 Pre screening
2 Initial interview
3 Reference and other checks
4 Application forms or lsquoblanksrsquo
5 Selection testing
6 Comprehensive interview
7 Job offer
8 Medical examination
24
Interviews
I Unstructured Interview
II Situational Interview
III Behavior Description Interviews
IV Comprehensive Structured Interviews
V Structured Behavioral Interview
25
PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
1048698 Unclear role of interviewer
1048698 Unprepared interviewer
1048698 Halo effect
1048698 Snap judgement
1048698 Personal biases
1048698 Ineffective communication
1048698 Contrast effect
1048698 Reflection effect
1048698 Satisfying onersquos own needs
26
bull INDUCTION
bull OUTSOURCING
27
COMPETENCY MAPPING AND ASSESSMENT CENTRES
28
Competencies
competencies are typically defined as a combination of knowledge skills abilities and other individual characteristics that can be reliably measured and that can be shown to differentiate performance
29
VARIOUS COMPETENCY MODELS
1048698Job Competencies Assessment Model interviews and
observations of outstanding and average performers
1048698Modified Job Competence Assessment Model a written account
of critical incidents (to reduce costs)
1048698Generic Model Overlay Method off-the-shelf
1048698Customized Generic Model Method tentative list of
competencies that are identified internally
1048698Flexible Job Competency Model Method under different conditions in the future
1048698Systems Method behaviors that may be important in the
future
30
HISTORY OF ASSESSMENT CENTRES
bull 1942
bull exceptional smartness
bull War Office Selection Boards
31
MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
Types of Psychological Tests
1048698 IQAchievement tests
1048698 Situational tests Situations are given and an individualrsquos behaviorresponse is observed
1048698 Psychometric tests
1048698 Personality Questionnaire
1048698 Interest Questionnaire
1048698 Values Questionnaire
32
MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
bull The Leaderless Group Discussion (LGD)bull In-basket Exercisebull Group Exercisesbull Behavioral Event Interviews
33
Difference between Assessment Centre and Development Center
34
PERFORMANCE PLANNING AND REVIEW
35
GOALS OF PERFORMANCE APPRAISAL
1048698 Each objective should be SMART ndash specific measurable agreed realistic and time-limited
1048698 Each objective must be in an area over which the employee has control
1048698 Give each objective a deadline
1048698 A clear target allows you to measure whether the employee is making the progress you expect
1048698 Provide information to assist in the HR decisions like promotions transfers etc
36
PROCESS OF PERFORMANCE APPRAISAL
bull Establishing Performance Standards
bull Communicating the Standards
37
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
bull Broadly all methods of appraisals can be divided into two different categories
bull 1048698 Past Oriented Methodsbull 1048698 Future Oriented Methods
38
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Past Oriented Methods
1 Rating Scales Rating scales consists of several numerical scales representing job related performance criterions such as dependability initiative output attendance attitude etc Each scales ranges from excellent to poor The total numerical scores are computed and final conclusions are derived
Advantages Adaptability easy to use low cost every type of job can be
evaluated large number of employees covered no formal training required
Disadvantages Raterrsquos biases
2 Checklist Under this method checklist of statements of traits of employee in the
form of Yes or No based questions is prepared Here the rater only does the
reporting or checking and HR department does the actual evaluation
Advantages Economy ease of administration limited training required
standardization
Disadvantages Raters biases use of improper weighs by HR does not allow rater
to give relative ratings
39
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
3 Forced Choice Method The series of statements arranged in the blocks of two or more are given and the rater indicates which statement is true or false The rater is forced to make a choice HR department does actual assessment
Advantages Absence of personal biases because of forced choice
Disadvantages Statements may be wrongly framed
4 Forced Distribution Method Here employees are clustered around a high point on a rating scale Rater is compelled to distribute the employees on all points on the scale It is assumed that the performance is conformed to normal distribution
Advantages Eliminates biasness
Disadvantages Assumption of normal distribution unrealistic errors of central
tendency
40
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
5 Critical Incidents Method The approach is focused on certain critical behaviors
of employee that makes all the difference in the performance Supervisors as and
when they occur record such incidents
Advantages Evaluations are based on actual job behaviors ratings are supported
by descriptions feedback is easy reduces recency biases chances of subordinate
improvement are high
Disadvantages Negative incidents can be prioritized forgetting incidents overly
close supervision feedback may be too much and may appear to be punishment
6 Behaviorally Anchored Rating Scales Statements of effective and ineffective
behaviors determine the points They are said to be behaviorally anchored The
rater is supposed to say which behavior describes the employee performance
Advantages Helps overcome rating errors
Disadvantages Suffers from distortions inherent in most rating techniques
41
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
7 Field Review Method This is an appraisal done by someone outside employeesrsquo own department usually from corporate or HR department
Advantages Useful for managerial level promotions when comparable
information is needed
Disadvantages Outsider is generally not familiar with employees work
environment Observation of actual behaviors not possible
8 Performance Tests amp Observations This is based on the test of knowledge or skills The tests may be written or an actual presentation of skills Tests must be reliable and validated to be useful
Advantages Tests may be apt to measure potential more than actual performance
Disadvantages Tests may suffer if costs of test development or administration are high
42
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Future Oriented Methods
1 Management by Objectives It means management by objectives and the
performance is rated against the achievement of objectives stated by the
management MBO process
(a) Establish goals and desired outcomes for each subordinate
(b) Setting performance standards
(c) Comparison of actual goals with goals attained by the employee
(d) Establish new goals and new strategies for goals not achieved in previous
year
43
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Future Oriented Methods
2 Psychological Appraisals
These appraisals are more directed to assess employeersquos potential for future performance rather than the past one It is done in the form of in-depth interviews psychological tests and discussion with supervisors and review of other evaluations
It is more focused on employees emotional intellectual and motivational and other personal characteristics affecting his performance This approach is slow and costly and may be useful for bright young members who may have considerable potential However quality of these appraisals largely depend upon the skills of psychologists who perform the evaluation
44
1 Leniency amp Severity
2 Central Tendency
3 Halo Effect
4 Primacy amp Recency Effect
5 Spillover Effects
6 Status Effect
Problems of RatingRating Biases
45
PERFORMANCE COACHING
The performance coaching process involves five strategies
1 Creating a partnership role To make employees realize that both employees and manger are responsible for performance and build trust amongst them
2 Commitment Inspiring employees to be committed to the goals
3 Competency development Awareness towards developing skills and
competencies required to reach to organizational goals
4 Perseverance Developing lsquonever say diersquo attitude among organizational members
5 Shaping the environment Creating conditions for employee development
46
THE COACHING DISCUSSION
Kinlawrsquos Approach
Kinlaw suggests a three-stage approach to the coaching discussion as follows
1048698 Confronting or presenting
1048698 Using reactions to develop information
1048698 Resolving or resolution
47
THE COACHING DISCUSSION
bull Fourniesrsquo Approach
bull Step 1 Get the employeersquos agreement that a problem existsbull Step 2 Mutually discuss alternative solutions to the problembull Step 3 Mutually agree on actions to be taken to solve the problembull Step 4 Follow-up to measure resultsbull Step 5 Recognize any achievement when it occurs
48
MENTORING
bull Mentorship is a process where an experienced person provides help guidance support to nurture and develop a less experienced person referred to as a proteacutegeacute apprentice mentee or (person) It improves the self esteem of mentee and increases hisher chance for success
49
MENTORING - Kinds
1048698 New-hire mentorship
1048698 High-potential mentorship
1048698 Mentorship in Education
50
POTENTIAL APPRAISAL CAREER AND SUCCESSION
PLANNING
51
POTENTIAL APPRAISAL
Purpose of Potential Appraisal
Potential appraisal serves the following purposes
1048698 To advise employees about their overall career development and future prospects
1048698 Help the organisation to chalk out succession plans
1048698 Motivate the employees to further develop their skills and competencies
1048698 To identify the training needs
52
POTENTIAL APPRAISAL
Techniques of Potential Appraisal
1048698 Self-appraisals
1048698 Peer appraisals
1048698 Superior appraisals
1048698 MBO
1048698 Psychological and psychometric tests
1048698 Management games like role playing
1048698 Leadership exercises etc
53
CAREER PLANNING
Steps in Career Planning Process
Step One Self Assessment
Step Two Goal Setting
Step Three AcademicCareer Options
Step Four Plan of Action
Step Five Catch Hold of Opportunities
54
bull Succession Planning refers to the process of developing the second line for taking up a higher role in the organization
SUCCESSION PLANNING
55
HR MEASUREMENT AND AUDIT
bull Audit helps the organization have a clear understanding of the lacunae and better align the HR processes with Business goals
bull The audit itself is a diagnostic tool not a prescriptive instrument It helps in identifying what is missing or needs to improve It is most useful when an organization is ready to act on the findings and to evolve its HR function to play a greater strategic role
56
WHY CONDUCT AN HR AUDIT
1048698 It helps promote more professionalism and professional management
1048698 HR audit helps an organization to be aware of its present practices policies
and their adherence
1048698 Benchmarking to improve HR practices
1048698 The organization can benchmark its processes with best-in-class organizations
1048698 HR audit suggest improvement measures keeping the organizational strategic goals and vision in mind
57
THE HR AUDIT PROCESS
InterviewsQuestionnaires
The audit team interviews the following
1048698 Top Management (CEO Unit Heads)
1048698 Line Managers (eg Managers in production quality purchase and marketing)
1048698 HRD Staff
1048698 Workmen and others
Observation and Recording
Follow-up and Corrections done
58
HUMAN RESOURCE ACCOUNTING
bull The American Accounting Associationrsquos Committee on Human Resource Accounting (1973) has defined Human Resource Accounting as ldquothe process of identifying and measuring data about human resources and communicating this information to interested partiesrdquo
bull It is the measurement and reporting of the cost and value of people in organizational Resources
59
METHODS OF HUMAN RESOURCE ACCOUNTING
Methods of Valuing and Accounting of Human Resources
The methods to value and account for human resources can be classified into the following categories
1 Methods based on costs (which include costs incurred by the company to recruit hire train and develop human resources)
2 Methods based on economic value of human resources and the capitalisation of companyrsquos earnings
60
HUMAN RESOURCE ACCOUNTING
Methods based on Cost
Historical Cost Method
Under this method the cost of acquisition ie selection hiring training costs of employees are capitalised and written off over the expected useful life of the employees In case the personnel leave the company before the anticipated period of service then the unamortised portion of costs remaining in the companyrsquos books is written off against the profit and loss account in that year If the period of service exceeds the anticipated time then amortisation of costs is rescheduled
Replacement Cost Method
Under this method the human resources are valued at their replacement cost ie The monetary implications of replacing existing personnel
Standard Cost Method
Under this method standard costs of recruiting hiring training and developing per grade of employees are determined annually The total standard cost for all personnel of the company is the value of human resources
61
HUMAN RESOURCE ACCOUNTING
bull HR Accounting based on Value
bull Economic Value Method
bull Under this method the net present value of incremental cash flows attributed to human resources is taken as the asset value
62
HUMAN RESOURCE INFORMATION SYSTEMS(HRIS)
bull An information system may be automated or manual and involves collectingprocessing transmitting and disseminating data that represents user information
63
HRIS ndash APPLICATION AND UTILITIES
Personnel administration It will encompass information about each employee
such as name address personal details etc
1048698 Salary administration Generate personnel cost reports conduct lsquowhat if
analysisrsquo provide compensation history
1048698 Leave and absence recording Essentially being able to provide comprehensive
method of tracking absences late coming reports on excess leave availed leave
lapsed
1048698 Skill inventory Recording of acquired skills and monitor the skill database at the
employee and organisational level
1048698 Performance appraisal The system should record individual employee
performance appraisal data such as appraisal ratings due date of appraisal
training needs identified during the appraisal process
1048698 Recruitment Record recruitment cost lead time to fill a vacant position
recruitment methods applicant and resume management
1048698 Career planning HRIS System can provide succession plan reports identifying
employees earmarked for future position
64
HRIS ndash DISADVANTAGES
May be expensive ndash financing the technology
1048698 Thorough understanding of what constitutes quality information for the user
1048698 Computer cannot substitute human beings
HUMAN RESOURCE DEVELOPMENT SYSTEM
66
HRD
HRD play a very crucial role in organization Henery Ford once said ldquotake out my building take out my machines take out all capital but leave my men with me and I will become Henry Ford againrdquo HRD is considered as key to higher productivity better relations and greater profitability for any organization
According to Daftur
ldquoHRD is a system and process concerned with an organized series of learning activities within specified time limits designed to produce behavioral changes in the learner in such a way that it acquires desired level of competence for present or future rolerdquo
67
HRDORGANIZATION ALIGNMENT MODEL
TRAINING AND DEVELOPMENT
69
NEED FOR TRAINING AND DEVELOPMENT
bull Technological advances bull Organizational complexity bull Organizational tenure bull Human relations movement
70
THE TRAINING PROCESS
71
Needs Assessment
72
bull Lecturesbull Audio Visualsbull On-the-job Training (OJT)bull Programmed Instructionbull Computer Assisted Instruction (CAI)bull Simulation
Methods and Techniques of Training
73
Training Methods for Management Development
1048698 Seminars and Conferences
1048698 Case Study
1048698 Role Playing
1048698 Management Games
1048698 Sensitivity Training
74
bull Implementation of the Training Program
bull Evaluation of Training Program
75
Kirkpatrick Model for Evaluating Effectiveness of Training Programs
1 Reactions
2 Learning
3 Behaviors
Results or Return on Investment (ROI)
76
SPECIAL TOPICS IN TRAINING ANDDEVELOPMENT
bull Cross-cultural Training
bull Orientation Training
bull Team-training and Cross-training
bull Diversity Training
COMPENSATION AND REWARDS
78
COMPENSATION OVERVIEW
Compensation is the process of directly and indirectly rewarding employees on a current or deferred basis for their performance of assigned tasks It consists of
1048698 Direct Financial Compensation Wages salaries bonuses commissions
1048698 Indirect Financial Compensation All financial rewards not included in direct compensation (benefits)
1048698 Non-financial Compensation Satisfaction received from the job or from the psychological andor physical environment of the job
JOB EVALUATION TECHNIQUE
The general step-wise procedure for job evaluation is as under
1 Select the group of jobs
2 Study the job (job analysis)
3 Prepare job description ndash approval
4 Device an evaluation plan ndash common characteristicstraits
5 Establish a committee of raters and rateevaluate
6 Group or classify the jobs
7 Convert job grades to money value along with Wage survey
8 Obtain approval from Union and Management
9 Establish a suitable grievance procedure
COMPONENTS OF COMPENSATION SYSTEM
1 Basic WagesSalaries
2 Dearness Allowance
3 Bonus
4 Commissions
5 Mixed Plans
6 Piece Rate Wages
7 Sign on Bonuses
8 Profit Sharing Payments
9 Fringe Benefits
COMPENSATION EQUITY
1048698 External Equity Employees are paid comparably to those who perform similar jobs in other industries
1048698 Internal Equity Employees are paid according to relative value of their jobs within an organisation
1048698 Employee Equity Individuals performing similar jobs for the same firm are rewarded according to factors unique to the employee such as performance level or seniority
1048698 Team Equity More productive teams receive greater rewards than less productive groups
INTERNATIONAL COMPENSATION
Elements of Expatriate Compensation
Basic Pay Amount of money that an expatriate receives from home country Used for
Bonus calculation
Benefits
1048698 One third of compensation
1048698 Extra vacation special leaves air fares for their families for an annual visit home
emergency leaves
1048698 Housing
1048698 Utilities ndash air conditioner bottled water electricity telephone call expenses
1048698 Car ndash car expenses chauffeur hired vehicle
Helping hands servants gardeners security
1048698 Club subscription
1048698 Educational benefits
Allowances
1048698 COLA ndash cost of living between home country and foreign country inflation
1048698 Relocation allowances
1048698 Hardship allowances
1048698 Separation allowances
1048698 Clothing allowances ndash very cold climates
1048698 Home leave allowances
1048698 Spouse assistance allowances
REWARDS SYSTEM
Reward System as Followed by Organisations
1 Incentive and Rewards
2 Competency Related Pay
3 Skill Based Pay
4 Team Based Rewards
5 Profit Sharing
7 Employee Ownership
8 Statutory and Voluntary Benefits
FORMS OF RECOGNITION
Examples of Formal Recognition
1 Milestone Service Anniversary Awards (5101520 25 years of service)
2 Ideas Improvement amp Performance Awards
3 Service Awards
a) Teamworkleadership
b) Customer Service
c) Citizenship
d) Innovation
e) Attendance
4 Awards would include
a) PlaquesDesk trophies
b) Certificates
c) GiftsCertificates
d) Picture in the webpage
FORMS OF RECOGNITION
Examples of Informal Recognition
1 Team Building Retreats
2 Acknowledgement of DeptDivision goals achieved
3 Project Completion meals
4 Birthday cakes and cards
5 Picnics
6 Staff Appreciation Day
7 Holiday Parties
8 Dress-up Days
9 Corporate Merchandise
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-
3
What is HRM
bull Human resource management managing the functions of employing developing and compensating human resources resulting in the creation and development of human relations with a view to contribute proportionately to individual organizational and societal goals
4
OBJECTIVES OF HRM
bull Societal objective
To be socially responsible to the needs and challenges of society
bull Organisational objective
To recognize that HRM exists to contribute to organisational effectiveness and efficiency
bull Functional objective
To maintain the departments contribution at a level appropriate to the organisations needs
bull Personal objective
To assist employees in achieving their personal goals at least in so far as these goals enhances the individuals contribution to the organisation
5
HRM FUNCTIONS
bull Human Resource Planningbull Recruitment and Selectionbull Performance and Career Managementbull Training and Developmentbull Compensationbull Retention Attrition and Downsizing
6
HRM CHALLENGES
bull Organizational Commitment and Empowerment (power sharing at the bottom of the pyramid)
bull Organizational Learning (teams ndash learning from failure)
bull Ethical Facetsbull Workplace Diversity
7
JOB ANALYSIS AND JOB DESIGN
8
Job Analysis
bull A job analysis is the process used to collect information about the duties responsibilities necessary skills outcomes and work environment of a particular job
bull It is a procedure through which you determine the duties of the positions and the characteristics of the people to hire for them The activity of job analysis gives us two results ndash job description and job specification
9
TYPES OF INFORMATION FOR JOB ANALYSIS
bull Work activities Information on the activities requires to complete the work such as cleaning selling and recruiting
bull Human behaviours The specialist collects information about human behaviours like sensing communicating deciding and writing
bull Machines tools equipment and work aids This category includes information regarding tools used materials processed and services rendered
bull Performance standards The information on the job performance standards in terms of quantity and quality of minimum standards acceptable
bull Job context Included here is information about job conditions work schedule and organizational and social context
bull Human requirements This includes information regarding the jobrsquos human requirements such as knowledge or skills (education training experience)
10
METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
bull Personal Observation (average conditions specific job needs not job behaviors ndash preferred for manual jobs not mental aspects)
bull Critical Incidents (behaviorally focused descriptions ndash lengthy ndash dissimilar behaviors)
bull Interview (lengthy distort information)bull Questionnaire Method (economical motivating employees
to complete the questionnaire)
11
Statement of human qualification necessary to do the job includes
1048698 Education
1048698 Experience
1048698 Training
1048698 Communication skills
1048698 Emotional characteristics
1048698 Physical effort
JOB SPECIFICATION
12
USE OF JOB ANALYSIS
bull Human resource planningbull Recruitmentbull Selectionbull Training bull Counseling bull Employee safety bull Performance appraisal bull Job evaluation
13
bull It integrates the work context (tasks functions and relationships) the rewards (extrinsic and intrinsic) and the qualifications required (skills knowledge abilities) for each job in a way that meets the needs of employees and the organizations
bull Job Enlargement bull Job Enrichment bull Job Rotation
JOB DESIGN
14
Job Characteristics
Skill Variety The extent to which the work requires several different activities for successful completion
Task Identity
The extent to which the job includes a ldquowholerdquo identifiable unit of work that is carried out from start to finish and that results in a visible outcome
Task Significance The impact the job has on other people
Autonomy The extent of individual freedom and discretion in the work and its scheduling
Feedback The amount of information received about how well or how poorly one has performed
15
HUMAN RESOURCE PLANNING
16
OBJECTIVES OF HRP
1 to prevent overstaffing and understaffing
2 to ensure employee availability
3 to ensure that the organization is responsive to the environment
4 to provide direction to all HR activities and
5 to build line and staff partnership
17
bull Environmental scanning
bull Forecasting and analyzing demand for human resources
bull Forecasting and analyzing supply of human resources
bull Developing action plans to match human resource demand and supplyndash HR Supply = HR demandndash HR Supply lt HR demand (deficitshortage)ndash HR Supply gt HR demand (surplus)
PROCESS OF HRP
18
bull Qualitative Methods
ndash Estimation (Centralized ndash HR Decentralized ndash Line Mgrs
ndash Expert Opinions
(a) Delphi techniques
(b) Group brainstorming
(c) Nominal group technique
(d) Averaging
ndash Sales force estimate
TECHNIQUES OF HR DEMAND FORECASTING
19
bull Quantitative Methods
bull Trend analysis and projection
bull Simulation models (probabilities of future events to estimate future employment levels)
bull Workload analysis (Both the number of employees and the kind of employees required to achieve organizational goals are identified)
bull Markov analysis
TECHNIQUES OF HR DEMAND FORECASTING
20
ATTRACTING THE TALENT RECRUITMENT
SELECTION AND OUTSOURCING
21
Internal Sources of Recruitment
1 Transfers
2 Promotions
3 Upgrading and demotion
4 Retired and retrenched employees
5 Deceased employees and disabled employees
SOURCES OF RECRUITMENT
22
External Sources of Recruitment
bull Press advertisements bull Educational institutesbull Placement agencies bull Employment exchanges bull Labour contractorsbull Unsolicited applicants bull Employee referralsrecommendations
SOURCES OF RECRUITMENT
23
THE SELECTION PROCESS
1 Pre screening
2 Initial interview
3 Reference and other checks
4 Application forms or lsquoblanksrsquo
5 Selection testing
6 Comprehensive interview
7 Job offer
8 Medical examination
24
Interviews
I Unstructured Interview
II Situational Interview
III Behavior Description Interviews
IV Comprehensive Structured Interviews
V Structured Behavioral Interview
25
PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
1048698 Unclear role of interviewer
1048698 Unprepared interviewer
1048698 Halo effect
1048698 Snap judgement
1048698 Personal biases
1048698 Ineffective communication
1048698 Contrast effect
1048698 Reflection effect
1048698 Satisfying onersquos own needs
26
bull INDUCTION
bull OUTSOURCING
27
COMPETENCY MAPPING AND ASSESSMENT CENTRES
28
Competencies
competencies are typically defined as a combination of knowledge skills abilities and other individual characteristics that can be reliably measured and that can be shown to differentiate performance
29
VARIOUS COMPETENCY MODELS
1048698Job Competencies Assessment Model interviews and
observations of outstanding and average performers
1048698Modified Job Competence Assessment Model a written account
of critical incidents (to reduce costs)
1048698Generic Model Overlay Method off-the-shelf
1048698Customized Generic Model Method tentative list of
competencies that are identified internally
1048698Flexible Job Competency Model Method under different conditions in the future
1048698Systems Method behaviors that may be important in the
future
30
HISTORY OF ASSESSMENT CENTRES
bull 1942
bull exceptional smartness
bull War Office Selection Boards
31
MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
Types of Psychological Tests
1048698 IQAchievement tests
1048698 Situational tests Situations are given and an individualrsquos behaviorresponse is observed
1048698 Psychometric tests
1048698 Personality Questionnaire
1048698 Interest Questionnaire
1048698 Values Questionnaire
32
MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
bull The Leaderless Group Discussion (LGD)bull In-basket Exercisebull Group Exercisesbull Behavioral Event Interviews
33
Difference between Assessment Centre and Development Center
34
PERFORMANCE PLANNING AND REVIEW
35
GOALS OF PERFORMANCE APPRAISAL
1048698 Each objective should be SMART ndash specific measurable agreed realistic and time-limited
1048698 Each objective must be in an area over which the employee has control
1048698 Give each objective a deadline
1048698 A clear target allows you to measure whether the employee is making the progress you expect
1048698 Provide information to assist in the HR decisions like promotions transfers etc
36
PROCESS OF PERFORMANCE APPRAISAL
bull Establishing Performance Standards
bull Communicating the Standards
37
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
bull Broadly all methods of appraisals can be divided into two different categories
bull 1048698 Past Oriented Methodsbull 1048698 Future Oriented Methods
38
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Past Oriented Methods
1 Rating Scales Rating scales consists of several numerical scales representing job related performance criterions such as dependability initiative output attendance attitude etc Each scales ranges from excellent to poor The total numerical scores are computed and final conclusions are derived
Advantages Adaptability easy to use low cost every type of job can be
evaluated large number of employees covered no formal training required
Disadvantages Raterrsquos biases
2 Checklist Under this method checklist of statements of traits of employee in the
form of Yes or No based questions is prepared Here the rater only does the
reporting or checking and HR department does the actual evaluation
Advantages Economy ease of administration limited training required
standardization
Disadvantages Raters biases use of improper weighs by HR does not allow rater
to give relative ratings
39
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
3 Forced Choice Method The series of statements arranged in the blocks of two or more are given and the rater indicates which statement is true or false The rater is forced to make a choice HR department does actual assessment
Advantages Absence of personal biases because of forced choice
Disadvantages Statements may be wrongly framed
4 Forced Distribution Method Here employees are clustered around a high point on a rating scale Rater is compelled to distribute the employees on all points on the scale It is assumed that the performance is conformed to normal distribution
Advantages Eliminates biasness
Disadvantages Assumption of normal distribution unrealistic errors of central
tendency
40
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
5 Critical Incidents Method The approach is focused on certain critical behaviors
of employee that makes all the difference in the performance Supervisors as and
when they occur record such incidents
Advantages Evaluations are based on actual job behaviors ratings are supported
by descriptions feedback is easy reduces recency biases chances of subordinate
improvement are high
Disadvantages Negative incidents can be prioritized forgetting incidents overly
close supervision feedback may be too much and may appear to be punishment
6 Behaviorally Anchored Rating Scales Statements of effective and ineffective
behaviors determine the points They are said to be behaviorally anchored The
rater is supposed to say which behavior describes the employee performance
Advantages Helps overcome rating errors
Disadvantages Suffers from distortions inherent in most rating techniques
41
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
7 Field Review Method This is an appraisal done by someone outside employeesrsquo own department usually from corporate or HR department
Advantages Useful for managerial level promotions when comparable
information is needed
Disadvantages Outsider is generally not familiar with employees work
environment Observation of actual behaviors not possible
8 Performance Tests amp Observations This is based on the test of knowledge or skills The tests may be written or an actual presentation of skills Tests must be reliable and validated to be useful
Advantages Tests may be apt to measure potential more than actual performance
Disadvantages Tests may suffer if costs of test development or administration are high
42
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Future Oriented Methods
1 Management by Objectives It means management by objectives and the
performance is rated against the achievement of objectives stated by the
management MBO process
(a) Establish goals and desired outcomes for each subordinate
(b) Setting performance standards
(c) Comparison of actual goals with goals attained by the employee
(d) Establish new goals and new strategies for goals not achieved in previous
year
43
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Future Oriented Methods
2 Psychological Appraisals
These appraisals are more directed to assess employeersquos potential for future performance rather than the past one It is done in the form of in-depth interviews psychological tests and discussion with supervisors and review of other evaluations
It is more focused on employees emotional intellectual and motivational and other personal characteristics affecting his performance This approach is slow and costly and may be useful for bright young members who may have considerable potential However quality of these appraisals largely depend upon the skills of psychologists who perform the evaluation
44
1 Leniency amp Severity
2 Central Tendency
3 Halo Effect
4 Primacy amp Recency Effect
5 Spillover Effects
6 Status Effect
Problems of RatingRating Biases
45
PERFORMANCE COACHING
The performance coaching process involves five strategies
1 Creating a partnership role To make employees realize that both employees and manger are responsible for performance and build trust amongst them
2 Commitment Inspiring employees to be committed to the goals
3 Competency development Awareness towards developing skills and
competencies required to reach to organizational goals
4 Perseverance Developing lsquonever say diersquo attitude among organizational members
5 Shaping the environment Creating conditions for employee development
46
THE COACHING DISCUSSION
Kinlawrsquos Approach
Kinlaw suggests a three-stage approach to the coaching discussion as follows
1048698 Confronting or presenting
1048698 Using reactions to develop information
1048698 Resolving or resolution
47
THE COACHING DISCUSSION
bull Fourniesrsquo Approach
bull Step 1 Get the employeersquos agreement that a problem existsbull Step 2 Mutually discuss alternative solutions to the problembull Step 3 Mutually agree on actions to be taken to solve the problembull Step 4 Follow-up to measure resultsbull Step 5 Recognize any achievement when it occurs
48
MENTORING
bull Mentorship is a process where an experienced person provides help guidance support to nurture and develop a less experienced person referred to as a proteacutegeacute apprentice mentee or (person) It improves the self esteem of mentee and increases hisher chance for success
49
MENTORING - Kinds
1048698 New-hire mentorship
1048698 High-potential mentorship
1048698 Mentorship in Education
50
POTENTIAL APPRAISAL CAREER AND SUCCESSION
PLANNING
51
POTENTIAL APPRAISAL
Purpose of Potential Appraisal
Potential appraisal serves the following purposes
1048698 To advise employees about their overall career development and future prospects
1048698 Help the organisation to chalk out succession plans
1048698 Motivate the employees to further develop their skills and competencies
1048698 To identify the training needs
52
POTENTIAL APPRAISAL
Techniques of Potential Appraisal
1048698 Self-appraisals
1048698 Peer appraisals
1048698 Superior appraisals
1048698 MBO
1048698 Psychological and psychometric tests
1048698 Management games like role playing
1048698 Leadership exercises etc
53
CAREER PLANNING
Steps in Career Planning Process
Step One Self Assessment
Step Two Goal Setting
Step Three AcademicCareer Options
Step Four Plan of Action
Step Five Catch Hold of Opportunities
54
bull Succession Planning refers to the process of developing the second line for taking up a higher role in the organization
SUCCESSION PLANNING
55
HR MEASUREMENT AND AUDIT
bull Audit helps the organization have a clear understanding of the lacunae and better align the HR processes with Business goals
bull The audit itself is a diagnostic tool not a prescriptive instrument It helps in identifying what is missing or needs to improve It is most useful when an organization is ready to act on the findings and to evolve its HR function to play a greater strategic role
56
WHY CONDUCT AN HR AUDIT
1048698 It helps promote more professionalism and professional management
1048698 HR audit helps an organization to be aware of its present practices policies
and their adherence
1048698 Benchmarking to improve HR practices
1048698 The organization can benchmark its processes with best-in-class organizations
1048698 HR audit suggest improvement measures keeping the organizational strategic goals and vision in mind
57
THE HR AUDIT PROCESS
InterviewsQuestionnaires
The audit team interviews the following
1048698 Top Management (CEO Unit Heads)
1048698 Line Managers (eg Managers in production quality purchase and marketing)
1048698 HRD Staff
1048698 Workmen and others
Observation and Recording
Follow-up and Corrections done
58
HUMAN RESOURCE ACCOUNTING
bull The American Accounting Associationrsquos Committee on Human Resource Accounting (1973) has defined Human Resource Accounting as ldquothe process of identifying and measuring data about human resources and communicating this information to interested partiesrdquo
bull It is the measurement and reporting of the cost and value of people in organizational Resources
59
METHODS OF HUMAN RESOURCE ACCOUNTING
Methods of Valuing and Accounting of Human Resources
The methods to value and account for human resources can be classified into the following categories
1 Methods based on costs (which include costs incurred by the company to recruit hire train and develop human resources)
2 Methods based on economic value of human resources and the capitalisation of companyrsquos earnings
60
HUMAN RESOURCE ACCOUNTING
Methods based on Cost
Historical Cost Method
Under this method the cost of acquisition ie selection hiring training costs of employees are capitalised and written off over the expected useful life of the employees In case the personnel leave the company before the anticipated period of service then the unamortised portion of costs remaining in the companyrsquos books is written off against the profit and loss account in that year If the period of service exceeds the anticipated time then amortisation of costs is rescheduled
Replacement Cost Method
Under this method the human resources are valued at their replacement cost ie The monetary implications of replacing existing personnel
Standard Cost Method
Under this method standard costs of recruiting hiring training and developing per grade of employees are determined annually The total standard cost for all personnel of the company is the value of human resources
61
HUMAN RESOURCE ACCOUNTING
bull HR Accounting based on Value
bull Economic Value Method
bull Under this method the net present value of incremental cash flows attributed to human resources is taken as the asset value
62
HUMAN RESOURCE INFORMATION SYSTEMS(HRIS)
bull An information system may be automated or manual and involves collectingprocessing transmitting and disseminating data that represents user information
63
HRIS ndash APPLICATION AND UTILITIES
Personnel administration It will encompass information about each employee
such as name address personal details etc
1048698 Salary administration Generate personnel cost reports conduct lsquowhat if
analysisrsquo provide compensation history
1048698 Leave and absence recording Essentially being able to provide comprehensive
method of tracking absences late coming reports on excess leave availed leave
lapsed
1048698 Skill inventory Recording of acquired skills and monitor the skill database at the
employee and organisational level
1048698 Performance appraisal The system should record individual employee
performance appraisal data such as appraisal ratings due date of appraisal
training needs identified during the appraisal process
1048698 Recruitment Record recruitment cost lead time to fill a vacant position
recruitment methods applicant and resume management
1048698 Career planning HRIS System can provide succession plan reports identifying
employees earmarked for future position
64
HRIS ndash DISADVANTAGES
May be expensive ndash financing the technology
1048698 Thorough understanding of what constitutes quality information for the user
1048698 Computer cannot substitute human beings
HUMAN RESOURCE DEVELOPMENT SYSTEM
66
HRD
HRD play a very crucial role in organization Henery Ford once said ldquotake out my building take out my machines take out all capital but leave my men with me and I will become Henry Ford againrdquo HRD is considered as key to higher productivity better relations and greater profitability for any organization
According to Daftur
ldquoHRD is a system and process concerned with an organized series of learning activities within specified time limits designed to produce behavioral changes in the learner in such a way that it acquires desired level of competence for present or future rolerdquo
67
HRDORGANIZATION ALIGNMENT MODEL
TRAINING AND DEVELOPMENT
69
NEED FOR TRAINING AND DEVELOPMENT
bull Technological advances bull Organizational complexity bull Organizational tenure bull Human relations movement
70
THE TRAINING PROCESS
71
Needs Assessment
72
bull Lecturesbull Audio Visualsbull On-the-job Training (OJT)bull Programmed Instructionbull Computer Assisted Instruction (CAI)bull Simulation
Methods and Techniques of Training
73
Training Methods for Management Development
1048698 Seminars and Conferences
1048698 Case Study
1048698 Role Playing
1048698 Management Games
1048698 Sensitivity Training
74
bull Implementation of the Training Program
bull Evaluation of Training Program
75
Kirkpatrick Model for Evaluating Effectiveness of Training Programs
1 Reactions
2 Learning
3 Behaviors
Results or Return on Investment (ROI)
76
SPECIAL TOPICS IN TRAINING ANDDEVELOPMENT
bull Cross-cultural Training
bull Orientation Training
bull Team-training and Cross-training
bull Diversity Training
COMPENSATION AND REWARDS
78
COMPENSATION OVERVIEW
Compensation is the process of directly and indirectly rewarding employees on a current or deferred basis for their performance of assigned tasks It consists of
1048698 Direct Financial Compensation Wages salaries bonuses commissions
1048698 Indirect Financial Compensation All financial rewards not included in direct compensation (benefits)
1048698 Non-financial Compensation Satisfaction received from the job or from the psychological andor physical environment of the job
JOB EVALUATION TECHNIQUE
The general step-wise procedure for job evaluation is as under
1 Select the group of jobs
2 Study the job (job analysis)
3 Prepare job description ndash approval
4 Device an evaluation plan ndash common characteristicstraits
5 Establish a committee of raters and rateevaluate
6 Group or classify the jobs
7 Convert job grades to money value along with Wage survey
8 Obtain approval from Union and Management
9 Establish a suitable grievance procedure
COMPONENTS OF COMPENSATION SYSTEM
1 Basic WagesSalaries
2 Dearness Allowance
3 Bonus
4 Commissions
5 Mixed Plans
6 Piece Rate Wages
7 Sign on Bonuses
8 Profit Sharing Payments
9 Fringe Benefits
COMPENSATION EQUITY
1048698 External Equity Employees are paid comparably to those who perform similar jobs in other industries
1048698 Internal Equity Employees are paid according to relative value of their jobs within an organisation
1048698 Employee Equity Individuals performing similar jobs for the same firm are rewarded according to factors unique to the employee such as performance level or seniority
1048698 Team Equity More productive teams receive greater rewards than less productive groups
INTERNATIONAL COMPENSATION
Elements of Expatriate Compensation
Basic Pay Amount of money that an expatriate receives from home country Used for
Bonus calculation
Benefits
1048698 One third of compensation
1048698 Extra vacation special leaves air fares for their families for an annual visit home
emergency leaves
1048698 Housing
1048698 Utilities ndash air conditioner bottled water electricity telephone call expenses
1048698 Car ndash car expenses chauffeur hired vehicle
Helping hands servants gardeners security
1048698 Club subscription
1048698 Educational benefits
Allowances
1048698 COLA ndash cost of living between home country and foreign country inflation
1048698 Relocation allowances
1048698 Hardship allowances
1048698 Separation allowances
1048698 Clothing allowances ndash very cold climates
1048698 Home leave allowances
1048698 Spouse assistance allowances
REWARDS SYSTEM
Reward System as Followed by Organisations
1 Incentive and Rewards
2 Competency Related Pay
3 Skill Based Pay
4 Team Based Rewards
5 Profit Sharing
7 Employee Ownership
8 Statutory and Voluntary Benefits
FORMS OF RECOGNITION
Examples of Formal Recognition
1 Milestone Service Anniversary Awards (5101520 25 years of service)
2 Ideas Improvement amp Performance Awards
3 Service Awards
a) Teamworkleadership
b) Customer Service
c) Citizenship
d) Innovation
e) Attendance
4 Awards would include
a) PlaquesDesk trophies
b) Certificates
c) GiftsCertificates
d) Picture in the webpage
FORMS OF RECOGNITION
Examples of Informal Recognition
1 Team Building Retreats
2 Acknowledgement of DeptDivision goals achieved
3 Project Completion meals
4 Birthday cakes and cards
5 Picnics
6 Staff Appreciation Day
7 Holiday Parties
8 Dress-up Days
9 Corporate Merchandise
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-
4
OBJECTIVES OF HRM
bull Societal objective
To be socially responsible to the needs and challenges of society
bull Organisational objective
To recognize that HRM exists to contribute to organisational effectiveness and efficiency
bull Functional objective
To maintain the departments contribution at a level appropriate to the organisations needs
bull Personal objective
To assist employees in achieving their personal goals at least in so far as these goals enhances the individuals contribution to the organisation
5
HRM FUNCTIONS
bull Human Resource Planningbull Recruitment and Selectionbull Performance and Career Managementbull Training and Developmentbull Compensationbull Retention Attrition and Downsizing
6
HRM CHALLENGES
bull Organizational Commitment and Empowerment (power sharing at the bottom of the pyramid)
bull Organizational Learning (teams ndash learning from failure)
bull Ethical Facetsbull Workplace Diversity
7
JOB ANALYSIS AND JOB DESIGN
8
Job Analysis
bull A job analysis is the process used to collect information about the duties responsibilities necessary skills outcomes and work environment of a particular job
bull It is a procedure through which you determine the duties of the positions and the characteristics of the people to hire for them The activity of job analysis gives us two results ndash job description and job specification
9
TYPES OF INFORMATION FOR JOB ANALYSIS
bull Work activities Information on the activities requires to complete the work such as cleaning selling and recruiting
bull Human behaviours The specialist collects information about human behaviours like sensing communicating deciding and writing
bull Machines tools equipment and work aids This category includes information regarding tools used materials processed and services rendered
bull Performance standards The information on the job performance standards in terms of quantity and quality of minimum standards acceptable
bull Job context Included here is information about job conditions work schedule and organizational and social context
bull Human requirements This includes information regarding the jobrsquos human requirements such as knowledge or skills (education training experience)
10
METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
bull Personal Observation (average conditions specific job needs not job behaviors ndash preferred for manual jobs not mental aspects)
bull Critical Incidents (behaviorally focused descriptions ndash lengthy ndash dissimilar behaviors)
bull Interview (lengthy distort information)bull Questionnaire Method (economical motivating employees
to complete the questionnaire)
11
Statement of human qualification necessary to do the job includes
1048698 Education
1048698 Experience
1048698 Training
1048698 Communication skills
1048698 Emotional characteristics
1048698 Physical effort
JOB SPECIFICATION
12
USE OF JOB ANALYSIS
bull Human resource planningbull Recruitmentbull Selectionbull Training bull Counseling bull Employee safety bull Performance appraisal bull Job evaluation
13
bull It integrates the work context (tasks functions and relationships) the rewards (extrinsic and intrinsic) and the qualifications required (skills knowledge abilities) for each job in a way that meets the needs of employees and the organizations
bull Job Enlargement bull Job Enrichment bull Job Rotation
JOB DESIGN
14
Job Characteristics
Skill Variety The extent to which the work requires several different activities for successful completion
Task Identity
The extent to which the job includes a ldquowholerdquo identifiable unit of work that is carried out from start to finish and that results in a visible outcome
Task Significance The impact the job has on other people
Autonomy The extent of individual freedom and discretion in the work and its scheduling
Feedback The amount of information received about how well or how poorly one has performed
15
HUMAN RESOURCE PLANNING
16
OBJECTIVES OF HRP
1 to prevent overstaffing and understaffing
2 to ensure employee availability
3 to ensure that the organization is responsive to the environment
4 to provide direction to all HR activities and
5 to build line and staff partnership
17
bull Environmental scanning
bull Forecasting and analyzing demand for human resources
bull Forecasting and analyzing supply of human resources
bull Developing action plans to match human resource demand and supplyndash HR Supply = HR demandndash HR Supply lt HR demand (deficitshortage)ndash HR Supply gt HR demand (surplus)
PROCESS OF HRP
18
bull Qualitative Methods
ndash Estimation (Centralized ndash HR Decentralized ndash Line Mgrs
ndash Expert Opinions
(a) Delphi techniques
(b) Group brainstorming
(c) Nominal group technique
(d) Averaging
ndash Sales force estimate
TECHNIQUES OF HR DEMAND FORECASTING
19
bull Quantitative Methods
bull Trend analysis and projection
bull Simulation models (probabilities of future events to estimate future employment levels)
bull Workload analysis (Both the number of employees and the kind of employees required to achieve organizational goals are identified)
bull Markov analysis
TECHNIQUES OF HR DEMAND FORECASTING
20
ATTRACTING THE TALENT RECRUITMENT
SELECTION AND OUTSOURCING
21
Internal Sources of Recruitment
1 Transfers
2 Promotions
3 Upgrading and demotion
4 Retired and retrenched employees
5 Deceased employees and disabled employees
SOURCES OF RECRUITMENT
22
External Sources of Recruitment
bull Press advertisements bull Educational institutesbull Placement agencies bull Employment exchanges bull Labour contractorsbull Unsolicited applicants bull Employee referralsrecommendations
SOURCES OF RECRUITMENT
23
THE SELECTION PROCESS
1 Pre screening
2 Initial interview
3 Reference and other checks
4 Application forms or lsquoblanksrsquo
5 Selection testing
6 Comprehensive interview
7 Job offer
8 Medical examination
24
Interviews
I Unstructured Interview
II Situational Interview
III Behavior Description Interviews
IV Comprehensive Structured Interviews
V Structured Behavioral Interview
25
PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
1048698 Unclear role of interviewer
1048698 Unprepared interviewer
1048698 Halo effect
1048698 Snap judgement
1048698 Personal biases
1048698 Ineffective communication
1048698 Contrast effect
1048698 Reflection effect
1048698 Satisfying onersquos own needs
26
bull INDUCTION
bull OUTSOURCING
27
COMPETENCY MAPPING AND ASSESSMENT CENTRES
28
Competencies
competencies are typically defined as a combination of knowledge skills abilities and other individual characteristics that can be reliably measured and that can be shown to differentiate performance
29
VARIOUS COMPETENCY MODELS
1048698Job Competencies Assessment Model interviews and
observations of outstanding and average performers
1048698Modified Job Competence Assessment Model a written account
of critical incidents (to reduce costs)
1048698Generic Model Overlay Method off-the-shelf
1048698Customized Generic Model Method tentative list of
competencies that are identified internally
1048698Flexible Job Competency Model Method under different conditions in the future
1048698Systems Method behaviors that may be important in the
future
30
HISTORY OF ASSESSMENT CENTRES
bull 1942
bull exceptional smartness
bull War Office Selection Boards
31
MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
Types of Psychological Tests
1048698 IQAchievement tests
1048698 Situational tests Situations are given and an individualrsquos behaviorresponse is observed
1048698 Psychometric tests
1048698 Personality Questionnaire
1048698 Interest Questionnaire
1048698 Values Questionnaire
32
MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
bull The Leaderless Group Discussion (LGD)bull In-basket Exercisebull Group Exercisesbull Behavioral Event Interviews
33
Difference between Assessment Centre and Development Center
34
PERFORMANCE PLANNING AND REVIEW
35
GOALS OF PERFORMANCE APPRAISAL
1048698 Each objective should be SMART ndash specific measurable agreed realistic and time-limited
1048698 Each objective must be in an area over which the employee has control
1048698 Give each objective a deadline
1048698 A clear target allows you to measure whether the employee is making the progress you expect
1048698 Provide information to assist in the HR decisions like promotions transfers etc
36
PROCESS OF PERFORMANCE APPRAISAL
bull Establishing Performance Standards
bull Communicating the Standards
37
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
bull Broadly all methods of appraisals can be divided into two different categories
bull 1048698 Past Oriented Methodsbull 1048698 Future Oriented Methods
38
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Past Oriented Methods
1 Rating Scales Rating scales consists of several numerical scales representing job related performance criterions such as dependability initiative output attendance attitude etc Each scales ranges from excellent to poor The total numerical scores are computed and final conclusions are derived
Advantages Adaptability easy to use low cost every type of job can be
evaluated large number of employees covered no formal training required
Disadvantages Raterrsquos biases
2 Checklist Under this method checklist of statements of traits of employee in the
form of Yes or No based questions is prepared Here the rater only does the
reporting or checking and HR department does the actual evaluation
Advantages Economy ease of administration limited training required
standardization
Disadvantages Raters biases use of improper weighs by HR does not allow rater
to give relative ratings
39
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
3 Forced Choice Method The series of statements arranged in the blocks of two or more are given and the rater indicates which statement is true or false The rater is forced to make a choice HR department does actual assessment
Advantages Absence of personal biases because of forced choice
Disadvantages Statements may be wrongly framed
4 Forced Distribution Method Here employees are clustered around a high point on a rating scale Rater is compelled to distribute the employees on all points on the scale It is assumed that the performance is conformed to normal distribution
Advantages Eliminates biasness
Disadvantages Assumption of normal distribution unrealistic errors of central
tendency
40
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
5 Critical Incidents Method The approach is focused on certain critical behaviors
of employee that makes all the difference in the performance Supervisors as and
when they occur record such incidents
Advantages Evaluations are based on actual job behaviors ratings are supported
by descriptions feedback is easy reduces recency biases chances of subordinate
improvement are high
Disadvantages Negative incidents can be prioritized forgetting incidents overly
close supervision feedback may be too much and may appear to be punishment
6 Behaviorally Anchored Rating Scales Statements of effective and ineffective
behaviors determine the points They are said to be behaviorally anchored The
rater is supposed to say which behavior describes the employee performance
Advantages Helps overcome rating errors
Disadvantages Suffers from distortions inherent in most rating techniques
41
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
7 Field Review Method This is an appraisal done by someone outside employeesrsquo own department usually from corporate or HR department
Advantages Useful for managerial level promotions when comparable
information is needed
Disadvantages Outsider is generally not familiar with employees work
environment Observation of actual behaviors not possible
8 Performance Tests amp Observations This is based on the test of knowledge or skills The tests may be written or an actual presentation of skills Tests must be reliable and validated to be useful
Advantages Tests may be apt to measure potential more than actual performance
Disadvantages Tests may suffer if costs of test development or administration are high
42
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Future Oriented Methods
1 Management by Objectives It means management by objectives and the
performance is rated against the achievement of objectives stated by the
management MBO process
(a) Establish goals and desired outcomes for each subordinate
(b) Setting performance standards
(c) Comparison of actual goals with goals attained by the employee
(d) Establish new goals and new strategies for goals not achieved in previous
year
43
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Future Oriented Methods
2 Psychological Appraisals
These appraisals are more directed to assess employeersquos potential for future performance rather than the past one It is done in the form of in-depth interviews psychological tests and discussion with supervisors and review of other evaluations
It is more focused on employees emotional intellectual and motivational and other personal characteristics affecting his performance This approach is slow and costly and may be useful for bright young members who may have considerable potential However quality of these appraisals largely depend upon the skills of psychologists who perform the evaluation
44
1 Leniency amp Severity
2 Central Tendency
3 Halo Effect
4 Primacy amp Recency Effect
5 Spillover Effects
6 Status Effect
Problems of RatingRating Biases
45
PERFORMANCE COACHING
The performance coaching process involves five strategies
1 Creating a partnership role To make employees realize that both employees and manger are responsible for performance and build trust amongst them
2 Commitment Inspiring employees to be committed to the goals
3 Competency development Awareness towards developing skills and
competencies required to reach to organizational goals
4 Perseverance Developing lsquonever say diersquo attitude among organizational members
5 Shaping the environment Creating conditions for employee development
46
THE COACHING DISCUSSION
Kinlawrsquos Approach
Kinlaw suggests a three-stage approach to the coaching discussion as follows
1048698 Confronting or presenting
1048698 Using reactions to develop information
1048698 Resolving or resolution
47
THE COACHING DISCUSSION
bull Fourniesrsquo Approach
bull Step 1 Get the employeersquos agreement that a problem existsbull Step 2 Mutually discuss alternative solutions to the problembull Step 3 Mutually agree on actions to be taken to solve the problembull Step 4 Follow-up to measure resultsbull Step 5 Recognize any achievement when it occurs
48
MENTORING
bull Mentorship is a process where an experienced person provides help guidance support to nurture and develop a less experienced person referred to as a proteacutegeacute apprentice mentee or (person) It improves the self esteem of mentee and increases hisher chance for success
49
MENTORING - Kinds
1048698 New-hire mentorship
1048698 High-potential mentorship
1048698 Mentorship in Education
50
POTENTIAL APPRAISAL CAREER AND SUCCESSION
PLANNING
51
POTENTIAL APPRAISAL
Purpose of Potential Appraisal
Potential appraisal serves the following purposes
1048698 To advise employees about their overall career development and future prospects
1048698 Help the organisation to chalk out succession plans
1048698 Motivate the employees to further develop their skills and competencies
1048698 To identify the training needs
52
POTENTIAL APPRAISAL
Techniques of Potential Appraisal
1048698 Self-appraisals
1048698 Peer appraisals
1048698 Superior appraisals
1048698 MBO
1048698 Psychological and psychometric tests
1048698 Management games like role playing
1048698 Leadership exercises etc
53
CAREER PLANNING
Steps in Career Planning Process
Step One Self Assessment
Step Two Goal Setting
Step Three AcademicCareer Options
Step Four Plan of Action
Step Five Catch Hold of Opportunities
54
bull Succession Planning refers to the process of developing the second line for taking up a higher role in the organization
SUCCESSION PLANNING
55
HR MEASUREMENT AND AUDIT
bull Audit helps the organization have a clear understanding of the lacunae and better align the HR processes with Business goals
bull The audit itself is a diagnostic tool not a prescriptive instrument It helps in identifying what is missing or needs to improve It is most useful when an organization is ready to act on the findings and to evolve its HR function to play a greater strategic role
56
WHY CONDUCT AN HR AUDIT
1048698 It helps promote more professionalism and professional management
1048698 HR audit helps an organization to be aware of its present practices policies
and their adherence
1048698 Benchmarking to improve HR practices
1048698 The organization can benchmark its processes with best-in-class organizations
1048698 HR audit suggest improvement measures keeping the organizational strategic goals and vision in mind
57
THE HR AUDIT PROCESS
InterviewsQuestionnaires
The audit team interviews the following
1048698 Top Management (CEO Unit Heads)
1048698 Line Managers (eg Managers in production quality purchase and marketing)
1048698 HRD Staff
1048698 Workmen and others
Observation and Recording
Follow-up and Corrections done
58
HUMAN RESOURCE ACCOUNTING
bull The American Accounting Associationrsquos Committee on Human Resource Accounting (1973) has defined Human Resource Accounting as ldquothe process of identifying and measuring data about human resources and communicating this information to interested partiesrdquo
bull It is the measurement and reporting of the cost and value of people in organizational Resources
59
METHODS OF HUMAN RESOURCE ACCOUNTING
Methods of Valuing and Accounting of Human Resources
The methods to value and account for human resources can be classified into the following categories
1 Methods based on costs (which include costs incurred by the company to recruit hire train and develop human resources)
2 Methods based on economic value of human resources and the capitalisation of companyrsquos earnings
60
HUMAN RESOURCE ACCOUNTING
Methods based on Cost
Historical Cost Method
Under this method the cost of acquisition ie selection hiring training costs of employees are capitalised and written off over the expected useful life of the employees In case the personnel leave the company before the anticipated period of service then the unamortised portion of costs remaining in the companyrsquos books is written off against the profit and loss account in that year If the period of service exceeds the anticipated time then amortisation of costs is rescheduled
Replacement Cost Method
Under this method the human resources are valued at their replacement cost ie The monetary implications of replacing existing personnel
Standard Cost Method
Under this method standard costs of recruiting hiring training and developing per grade of employees are determined annually The total standard cost for all personnel of the company is the value of human resources
61
HUMAN RESOURCE ACCOUNTING
bull HR Accounting based on Value
bull Economic Value Method
bull Under this method the net present value of incremental cash flows attributed to human resources is taken as the asset value
62
HUMAN RESOURCE INFORMATION SYSTEMS(HRIS)
bull An information system may be automated or manual and involves collectingprocessing transmitting and disseminating data that represents user information
63
HRIS ndash APPLICATION AND UTILITIES
Personnel administration It will encompass information about each employee
such as name address personal details etc
1048698 Salary administration Generate personnel cost reports conduct lsquowhat if
analysisrsquo provide compensation history
1048698 Leave and absence recording Essentially being able to provide comprehensive
method of tracking absences late coming reports on excess leave availed leave
lapsed
1048698 Skill inventory Recording of acquired skills and monitor the skill database at the
employee and organisational level
1048698 Performance appraisal The system should record individual employee
performance appraisal data such as appraisal ratings due date of appraisal
training needs identified during the appraisal process
1048698 Recruitment Record recruitment cost lead time to fill a vacant position
recruitment methods applicant and resume management
1048698 Career planning HRIS System can provide succession plan reports identifying
employees earmarked for future position
64
HRIS ndash DISADVANTAGES
May be expensive ndash financing the technology
1048698 Thorough understanding of what constitutes quality information for the user
1048698 Computer cannot substitute human beings
HUMAN RESOURCE DEVELOPMENT SYSTEM
66
HRD
HRD play a very crucial role in organization Henery Ford once said ldquotake out my building take out my machines take out all capital but leave my men with me and I will become Henry Ford againrdquo HRD is considered as key to higher productivity better relations and greater profitability for any organization
According to Daftur
ldquoHRD is a system and process concerned with an organized series of learning activities within specified time limits designed to produce behavioral changes in the learner in such a way that it acquires desired level of competence for present or future rolerdquo
67
HRDORGANIZATION ALIGNMENT MODEL
TRAINING AND DEVELOPMENT
69
NEED FOR TRAINING AND DEVELOPMENT
bull Technological advances bull Organizational complexity bull Organizational tenure bull Human relations movement
70
THE TRAINING PROCESS
71
Needs Assessment
72
bull Lecturesbull Audio Visualsbull On-the-job Training (OJT)bull Programmed Instructionbull Computer Assisted Instruction (CAI)bull Simulation
Methods and Techniques of Training
73
Training Methods for Management Development
1048698 Seminars and Conferences
1048698 Case Study
1048698 Role Playing
1048698 Management Games
1048698 Sensitivity Training
74
bull Implementation of the Training Program
bull Evaluation of Training Program
75
Kirkpatrick Model for Evaluating Effectiveness of Training Programs
1 Reactions
2 Learning
3 Behaviors
Results or Return on Investment (ROI)
76
SPECIAL TOPICS IN TRAINING ANDDEVELOPMENT
bull Cross-cultural Training
bull Orientation Training
bull Team-training and Cross-training
bull Diversity Training
COMPENSATION AND REWARDS
78
COMPENSATION OVERVIEW
Compensation is the process of directly and indirectly rewarding employees on a current or deferred basis for their performance of assigned tasks It consists of
1048698 Direct Financial Compensation Wages salaries bonuses commissions
1048698 Indirect Financial Compensation All financial rewards not included in direct compensation (benefits)
1048698 Non-financial Compensation Satisfaction received from the job or from the psychological andor physical environment of the job
JOB EVALUATION TECHNIQUE
The general step-wise procedure for job evaluation is as under
1 Select the group of jobs
2 Study the job (job analysis)
3 Prepare job description ndash approval
4 Device an evaluation plan ndash common characteristicstraits
5 Establish a committee of raters and rateevaluate
6 Group or classify the jobs
7 Convert job grades to money value along with Wage survey
8 Obtain approval from Union and Management
9 Establish a suitable grievance procedure
COMPONENTS OF COMPENSATION SYSTEM
1 Basic WagesSalaries
2 Dearness Allowance
3 Bonus
4 Commissions
5 Mixed Plans
6 Piece Rate Wages
7 Sign on Bonuses
8 Profit Sharing Payments
9 Fringe Benefits
COMPENSATION EQUITY
1048698 External Equity Employees are paid comparably to those who perform similar jobs in other industries
1048698 Internal Equity Employees are paid according to relative value of their jobs within an organisation
1048698 Employee Equity Individuals performing similar jobs for the same firm are rewarded according to factors unique to the employee such as performance level or seniority
1048698 Team Equity More productive teams receive greater rewards than less productive groups
INTERNATIONAL COMPENSATION
Elements of Expatriate Compensation
Basic Pay Amount of money that an expatriate receives from home country Used for
Bonus calculation
Benefits
1048698 One third of compensation
1048698 Extra vacation special leaves air fares for their families for an annual visit home
emergency leaves
1048698 Housing
1048698 Utilities ndash air conditioner bottled water electricity telephone call expenses
1048698 Car ndash car expenses chauffeur hired vehicle
Helping hands servants gardeners security
1048698 Club subscription
1048698 Educational benefits
Allowances
1048698 COLA ndash cost of living between home country and foreign country inflation
1048698 Relocation allowances
1048698 Hardship allowances
1048698 Separation allowances
1048698 Clothing allowances ndash very cold climates
1048698 Home leave allowances
1048698 Spouse assistance allowances
REWARDS SYSTEM
Reward System as Followed by Organisations
1 Incentive and Rewards
2 Competency Related Pay
3 Skill Based Pay
4 Team Based Rewards
5 Profit Sharing
7 Employee Ownership
8 Statutory and Voluntary Benefits
FORMS OF RECOGNITION
Examples of Formal Recognition
1 Milestone Service Anniversary Awards (5101520 25 years of service)
2 Ideas Improvement amp Performance Awards
3 Service Awards
a) Teamworkleadership
b) Customer Service
c) Citizenship
d) Innovation
e) Attendance
4 Awards would include
a) PlaquesDesk trophies
b) Certificates
c) GiftsCertificates
d) Picture in the webpage
FORMS OF RECOGNITION
Examples of Informal Recognition
1 Team Building Retreats
2 Acknowledgement of DeptDivision goals achieved
3 Project Completion meals
4 Birthday cakes and cards
5 Picnics
6 Staff Appreciation Day
7 Holiday Parties
8 Dress-up Days
9 Corporate Merchandise
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-
5
HRM FUNCTIONS
bull Human Resource Planningbull Recruitment and Selectionbull Performance and Career Managementbull Training and Developmentbull Compensationbull Retention Attrition and Downsizing
6
HRM CHALLENGES
bull Organizational Commitment and Empowerment (power sharing at the bottom of the pyramid)
bull Organizational Learning (teams ndash learning from failure)
bull Ethical Facetsbull Workplace Diversity
7
JOB ANALYSIS AND JOB DESIGN
8
Job Analysis
bull A job analysis is the process used to collect information about the duties responsibilities necessary skills outcomes and work environment of a particular job
bull It is a procedure through which you determine the duties of the positions and the characteristics of the people to hire for them The activity of job analysis gives us two results ndash job description and job specification
9
TYPES OF INFORMATION FOR JOB ANALYSIS
bull Work activities Information on the activities requires to complete the work such as cleaning selling and recruiting
bull Human behaviours The specialist collects information about human behaviours like sensing communicating deciding and writing
bull Machines tools equipment and work aids This category includes information regarding tools used materials processed and services rendered
bull Performance standards The information on the job performance standards in terms of quantity and quality of minimum standards acceptable
bull Job context Included here is information about job conditions work schedule and organizational and social context
bull Human requirements This includes information regarding the jobrsquos human requirements such as knowledge or skills (education training experience)
10
METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
bull Personal Observation (average conditions specific job needs not job behaviors ndash preferred for manual jobs not mental aspects)
bull Critical Incidents (behaviorally focused descriptions ndash lengthy ndash dissimilar behaviors)
bull Interview (lengthy distort information)bull Questionnaire Method (economical motivating employees
to complete the questionnaire)
11
Statement of human qualification necessary to do the job includes
1048698 Education
1048698 Experience
1048698 Training
1048698 Communication skills
1048698 Emotional characteristics
1048698 Physical effort
JOB SPECIFICATION
12
USE OF JOB ANALYSIS
bull Human resource planningbull Recruitmentbull Selectionbull Training bull Counseling bull Employee safety bull Performance appraisal bull Job evaluation
13
bull It integrates the work context (tasks functions and relationships) the rewards (extrinsic and intrinsic) and the qualifications required (skills knowledge abilities) for each job in a way that meets the needs of employees and the organizations
bull Job Enlargement bull Job Enrichment bull Job Rotation
JOB DESIGN
14
Job Characteristics
Skill Variety The extent to which the work requires several different activities for successful completion
Task Identity
The extent to which the job includes a ldquowholerdquo identifiable unit of work that is carried out from start to finish and that results in a visible outcome
Task Significance The impact the job has on other people
Autonomy The extent of individual freedom and discretion in the work and its scheduling
Feedback The amount of information received about how well or how poorly one has performed
15
HUMAN RESOURCE PLANNING
16
OBJECTIVES OF HRP
1 to prevent overstaffing and understaffing
2 to ensure employee availability
3 to ensure that the organization is responsive to the environment
4 to provide direction to all HR activities and
5 to build line and staff partnership
17
bull Environmental scanning
bull Forecasting and analyzing demand for human resources
bull Forecasting and analyzing supply of human resources
bull Developing action plans to match human resource demand and supplyndash HR Supply = HR demandndash HR Supply lt HR demand (deficitshortage)ndash HR Supply gt HR demand (surplus)
PROCESS OF HRP
18
bull Qualitative Methods
ndash Estimation (Centralized ndash HR Decentralized ndash Line Mgrs
ndash Expert Opinions
(a) Delphi techniques
(b) Group brainstorming
(c) Nominal group technique
(d) Averaging
ndash Sales force estimate
TECHNIQUES OF HR DEMAND FORECASTING
19
bull Quantitative Methods
bull Trend analysis and projection
bull Simulation models (probabilities of future events to estimate future employment levels)
bull Workload analysis (Both the number of employees and the kind of employees required to achieve organizational goals are identified)
bull Markov analysis
TECHNIQUES OF HR DEMAND FORECASTING
20
ATTRACTING THE TALENT RECRUITMENT
SELECTION AND OUTSOURCING
21
Internal Sources of Recruitment
1 Transfers
2 Promotions
3 Upgrading and demotion
4 Retired and retrenched employees
5 Deceased employees and disabled employees
SOURCES OF RECRUITMENT
22
External Sources of Recruitment
bull Press advertisements bull Educational institutesbull Placement agencies bull Employment exchanges bull Labour contractorsbull Unsolicited applicants bull Employee referralsrecommendations
SOURCES OF RECRUITMENT
23
THE SELECTION PROCESS
1 Pre screening
2 Initial interview
3 Reference and other checks
4 Application forms or lsquoblanksrsquo
5 Selection testing
6 Comprehensive interview
7 Job offer
8 Medical examination
24
Interviews
I Unstructured Interview
II Situational Interview
III Behavior Description Interviews
IV Comprehensive Structured Interviews
V Structured Behavioral Interview
25
PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
1048698 Unclear role of interviewer
1048698 Unprepared interviewer
1048698 Halo effect
1048698 Snap judgement
1048698 Personal biases
1048698 Ineffective communication
1048698 Contrast effect
1048698 Reflection effect
1048698 Satisfying onersquos own needs
26
bull INDUCTION
bull OUTSOURCING
27
COMPETENCY MAPPING AND ASSESSMENT CENTRES
28
Competencies
competencies are typically defined as a combination of knowledge skills abilities and other individual characteristics that can be reliably measured and that can be shown to differentiate performance
29
VARIOUS COMPETENCY MODELS
1048698Job Competencies Assessment Model interviews and
observations of outstanding and average performers
1048698Modified Job Competence Assessment Model a written account
of critical incidents (to reduce costs)
1048698Generic Model Overlay Method off-the-shelf
1048698Customized Generic Model Method tentative list of
competencies that are identified internally
1048698Flexible Job Competency Model Method under different conditions in the future
1048698Systems Method behaviors that may be important in the
future
30
HISTORY OF ASSESSMENT CENTRES
bull 1942
bull exceptional smartness
bull War Office Selection Boards
31
MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
Types of Psychological Tests
1048698 IQAchievement tests
1048698 Situational tests Situations are given and an individualrsquos behaviorresponse is observed
1048698 Psychometric tests
1048698 Personality Questionnaire
1048698 Interest Questionnaire
1048698 Values Questionnaire
32
MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
bull The Leaderless Group Discussion (LGD)bull In-basket Exercisebull Group Exercisesbull Behavioral Event Interviews
33
Difference between Assessment Centre and Development Center
34
PERFORMANCE PLANNING AND REVIEW
35
GOALS OF PERFORMANCE APPRAISAL
1048698 Each objective should be SMART ndash specific measurable agreed realistic and time-limited
1048698 Each objective must be in an area over which the employee has control
1048698 Give each objective a deadline
1048698 A clear target allows you to measure whether the employee is making the progress you expect
1048698 Provide information to assist in the HR decisions like promotions transfers etc
36
PROCESS OF PERFORMANCE APPRAISAL
bull Establishing Performance Standards
bull Communicating the Standards
37
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
bull Broadly all methods of appraisals can be divided into two different categories
bull 1048698 Past Oriented Methodsbull 1048698 Future Oriented Methods
38
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Past Oriented Methods
1 Rating Scales Rating scales consists of several numerical scales representing job related performance criterions such as dependability initiative output attendance attitude etc Each scales ranges from excellent to poor The total numerical scores are computed and final conclusions are derived
Advantages Adaptability easy to use low cost every type of job can be
evaluated large number of employees covered no formal training required
Disadvantages Raterrsquos biases
2 Checklist Under this method checklist of statements of traits of employee in the
form of Yes or No based questions is prepared Here the rater only does the
reporting or checking and HR department does the actual evaluation
Advantages Economy ease of administration limited training required
standardization
Disadvantages Raters biases use of improper weighs by HR does not allow rater
to give relative ratings
39
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
3 Forced Choice Method The series of statements arranged in the blocks of two or more are given and the rater indicates which statement is true or false The rater is forced to make a choice HR department does actual assessment
Advantages Absence of personal biases because of forced choice
Disadvantages Statements may be wrongly framed
4 Forced Distribution Method Here employees are clustered around a high point on a rating scale Rater is compelled to distribute the employees on all points on the scale It is assumed that the performance is conformed to normal distribution
Advantages Eliminates biasness
Disadvantages Assumption of normal distribution unrealistic errors of central
tendency
40
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
5 Critical Incidents Method The approach is focused on certain critical behaviors
of employee that makes all the difference in the performance Supervisors as and
when they occur record such incidents
Advantages Evaluations are based on actual job behaviors ratings are supported
by descriptions feedback is easy reduces recency biases chances of subordinate
improvement are high
Disadvantages Negative incidents can be prioritized forgetting incidents overly
close supervision feedback may be too much and may appear to be punishment
6 Behaviorally Anchored Rating Scales Statements of effective and ineffective
behaviors determine the points They are said to be behaviorally anchored The
rater is supposed to say which behavior describes the employee performance
Advantages Helps overcome rating errors
Disadvantages Suffers from distortions inherent in most rating techniques
41
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
7 Field Review Method This is an appraisal done by someone outside employeesrsquo own department usually from corporate or HR department
Advantages Useful for managerial level promotions when comparable
information is needed
Disadvantages Outsider is generally not familiar with employees work
environment Observation of actual behaviors not possible
8 Performance Tests amp Observations This is based on the test of knowledge or skills The tests may be written or an actual presentation of skills Tests must be reliable and validated to be useful
Advantages Tests may be apt to measure potential more than actual performance
Disadvantages Tests may suffer if costs of test development or administration are high
42
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Future Oriented Methods
1 Management by Objectives It means management by objectives and the
performance is rated against the achievement of objectives stated by the
management MBO process
(a) Establish goals and desired outcomes for each subordinate
(b) Setting performance standards
(c) Comparison of actual goals with goals attained by the employee
(d) Establish new goals and new strategies for goals not achieved in previous
year
43
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Future Oriented Methods
2 Psychological Appraisals
These appraisals are more directed to assess employeersquos potential for future performance rather than the past one It is done in the form of in-depth interviews psychological tests and discussion with supervisors and review of other evaluations
It is more focused on employees emotional intellectual and motivational and other personal characteristics affecting his performance This approach is slow and costly and may be useful for bright young members who may have considerable potential However quality of these appraisals largely depend upon the skills of psychologists who perform the evaluation
44
1 Leniency amp Severity
2 Central Tendency
3 Halo Effect
4 Primacy amp Recency Effect
5 Spillover Effects
6 Status Effect
Problems of RatingRating Biases
45
PERFORMANCE COACHING
The performance coaching process involves five strategies
1 Creating a partnership role To make employees realize that both employees and manger are responsible for performance and build trust amongst them
2 Commitment Inspiring employees to be committed to the goals
3 Competency development Awareness towards developing skills and
competencies required to reach to organizational goals
4 Perseverance Developing lsquonever say diersquo attitude among organizational members
5 Shaping the environment Creating conditions for employee development
46
THE COACHING DISCUSSION
Kinlawrsquos Approach
Kinlaw suggests a three-stage approach to the coaching discussion as follows
1048698 Confronting or presenting
1048698 Using reactions to develop information
1048698 Resolving or resolution
47
THE COACHING DISCUSSION
bull Fourniesrsquo Approach
bull Step 1 Get the employeersquos agreement that a problem existsbull Step 2 Mutually discuss alternative solutions to the problembull Step 3 Mutually agree on actions to be taken to solve the problembull Step 4 Follow-up to measure resultsbull Step 5 Recognize any achievement when it occurs
48
MENTORING
bull Mentorship is a process where an experienced person provides help guidance support to nurture and develop a less experienced person referred to as a proteacutegeacute apprentice mentee or (person) It improves the self esteem of mentee and increases hisher chance for success
49
MENTORING - Kinds
1048698 New-hire mentorship
1048698 High-potential mentorship
1048698 Mentorship in Education
50
POTENTIAL APPRAISAL CAREER AND SUCCESSION
PLANNING
51
POTENTIAL APPRAISAL
Purpose of Potential Appraisal
Potential appraisal serves the following purposes
1048698 To advise employees about their overall career development and future prospects
1048698 Help the organisation to chalk out succession plans
1048698 Motivate the employees to further develop their skills and competencies
1048698 To identify the training needs
52
POTENTIAL APPRAISAL
Techniques of Potential Appraisal
1048698 Self-appraisals
1048698 Peer appraisals
1048698 Superior appraisals
1048698 MBO
1048698 Psychological and psychometric tests
1048698 Management games like role playing
1048698 Leadership exercises etc
53
CAREER PLANNING
Steps in Career Planning Process
Step One Self Assessment
Step Two Goal Setting
Step Three AcademicCareer Options
Step Four Plan of Action
Step Five Catch Hold of Opportunities
54
bull Succession Planning refers to the process of developing the second line for taking up a higher role in the organization
SUCCESSION PLANNING
55
HR MEASUREMENT AND AUDIT
bull Audit helps the organization have a clear understanding of the lacunae and better align the HR processes with Business goals
bull The audit itself is a diagnostic tool not a prescriptive instrument It helps in identifying what is missing or needs to improve It is most useful when an organization is ready to act on the findings and to evolve its HR function to play a greater strategic role
56
WHY CONDUCT AN HR AUDIT
1048698 It helps promote more professionalism and professional management
1048698 HR audit helps an organization to be aware of its present practices policies
and their adherence
1048698 Benchmarking to improve HR practices
1048698 The organization can benchmark its processes with best-in-class organizations
1048698 HR audit suggest improvement measures keeping the organizational strategic goals and vision in mind
57
THE HR AUDIT PROCESS
InterviewsQuestionnaires
The audit team interviews the following
1048698 Top Management (CEO Unit Heads)
1048698 Line Managers (eg Managers in production quality purchase and marketing)
1048698 HRD Staff
1048698 Workmen and others
Observation and Recording
Follow-up and Corrections done
58
HUMAN RESOURCE ACCOUNTING
bull The American Accounting Associationrsquos Committee on Human Resource Accounting (1973) has defined Human Resource Accounting as ldquothe process of identifying and measuring data about human resources and communicating this information to interested partiesrdquo
bull It is the measurement and reporting of the cost and value of people in organizational Resources
59
METHODS OF HUMAN RESOURCE ACCOUNTING
Methods of Valuing and Accounting of Human Resources
The methods to value and account for human resources can be classified into the following categories
1 Methods based on costs (which include costs incurred by the company to recruit hire train and develop human resources)
2 Methods based on economic value of human resources and the capitalisation of companyrsquos earnings
60
HUMAN RESOURCE ACCOUNTING
Methods based on Cost
Historical Cost Method
Under this method the cost of acquisition ie selection hiring training costs of employees are capitalised and written off over the expected useful life of the employees In case the personnel leave the company before the anticipated period of service then the unamortised portion of costs remaining in the companyrsquos books is written off against the profit and loss account in that year If the period of service exceeds the anticipated time then amortisation of costs is rescheduled
Replacement Cost Method
Under this method the human resources are valued at their replacement cost ie The monetary implications of replacing existing personnel
Standard Cost Method
Under this method standard costs of recruiting hiring training and developing per grade of employees are determined annually The total standard cost for all personnel of the company is the value of human resources
61
HUMAN RESOURCE ACCOUNTING
bull HR Accounting based on Value
bull Economic Value Method
bull Under this method the net present value of incremental cash flows attributed to human resources is taken as the asset value
62
HUMAN RESOURCE INFORMATION SYSTEMS(HRIS)
bull An information system may be automated or manual and involves collectingprocessing transmitting and disseminating data that represents user information
63
HRIS ndash APPLICATION AND UTILITIES
Personnel administration It will encompass information about each employee
such as name address personal details etc
1048698 Salary administration Generate personnel cost reports conduct lsquowhat if
analysisrsquo provide compensation history
1048698 Leave and absence recording Essentially being able to provide comprehensive
method of tracking absences late coming reports on excess leave availed leave
lapsed
1048698 Skill inventory Recording of acquired skills and monitor the skill database at the
employee and organisational level
1048698 Performance appraisal The system should record individual employee
performance appraisal data such as appraisal ratings due date of appraisal
training needs identified during the appraisal process
1048698 Recruitment Record recruitment cost lead time to fill a vacant position
recruitment methods applicant and resume management
1048698 Career planning HRIS System can provide succession plan reports identifying
employees earmarked for future position
64
HRIS ndash DISADVANTAGES
May be expensive ndash financing the technology
1048698 Thorough understanding of what constitutes quality information for the user
1048698 Computer cannot substitute human beings
HUMAN RESOURCE DEVELOPMENT SYSTEM
66
HRD
HRD play a very crucial role in organization Henery Ford once said ldquotake out my building take out my machines take out all capital but leave my men with me and I will become Henry Ford againrdquo HRD is considered as key to higher productivity better relations and greater profitability for any organization
According to Daftur
ldquoHRD is a system and process concerned with an organized series of learning activities within specified time limits designed to produce behavioral changes in the learner in such a way that it acquires desired level of competence for present or future rolerdquo
67
HRDORGANIZATION ALIGNMENT MODEL
TRAINING AND DEVELOPMENT
69
NEED FOR TRAINING AND DEVELOPMENT
bull Technological advances bull Organizational complexity bull Organizational tenure bull Human relations movement
70
THE TRAINING PROCESS
71
Needs Assessment
72
bull Lecturesbull Audio Visualsbull On-the-job Training (OJT)bull Programmed Instructionbull Computer Assisted Instruction (CAI)bull Simulation
Methods and Techniques of Training
73
Training Methods for Management Development
1048698 Seminars and Conferences
1048698 Case Study
1048698 Role Playing
1048698 Management Games
1048698 Sensitivity Training
74
bull Implementation of the Training Program
bull Evaluation of Training Program
75
Kirkpatrick Model for Evaluating Effectiveness of Training Programs
1 Reactions
2 Learning
3 Behaviors
Results or Return on Investment (ROI)
76
SPECIAL TOPICS IN TRAINING ANDDEVELOPMENT
bull Cross-cultural Training
bull Orientation Training
bull Team-training and Cross-training
bull Diversity Training
COMPENSATION AND REWARDS
78
COMPENSATION OVERVIEW
Compensation is the process of directly and indirectly rewarding employees on a current or deferred basis for their performance of assigned tasks It consists of
1048698 Direct Financial Compensation Wages salaries bonuses commissions
1048698 Indirect Financial Compensation All financial rewards not included in direct compensation (benefits)
1048698 Non-financial Compensation Satisfaction received from the job or from the psychological andor physical environment of the job
JOB EVALUATION TECHNIQUE
The general step-wise procedure for job evaluation is as under
1 Select the group of jobs
2 Study the job (job analysis)
3 Prepare job description ndash approval
4 Device an evaluation plan ndash common characteristicstraits
5 Establish a committee of raters and rateevaluate
6 Group or classify the jobs
7 Convert job grades to money value along with Wage survey
8 Obtain approval from Union and Management
9 Establish a suitable grievance procedure
COMPONENTS OF COMPENSATION SYSTEM
1 Basic WagesSalaries
2 Dearness Allowance
3 Bonus
4 Commissions
5 Mixed Plans
6 Piece Rate Wages
7 Sign on Bonuses
8 Profit Sharing Payments
9 Fringe Benefits
COMPENSATION EQUITY
1048698 External Equity Employees are paid comparably to those who perform similar jobs in other industries
1048698 Internal Equity Employees are paid according to relative value of their jobs within an organisation
1048698 Employee Equity Individuals performing similar jobs for the same firm are rewarded according to factors unique to the employee such as performance level or seniority
1048698 Team Equity More productive teams receive greater rewards than less productive groups
INTERNATIONAL COMPENSATION
Elements of Expatriate Compensation
Basic Pay Amount of money that an expatriate receives from home country Used for
Bonus calculation
Benefits
1048698 One third of compensation
1048698 Extra vacation special leaves air fares for their families for an annual visit home
emergency leaves
1048698 Housing
1048698 Utilities ndash air conditioner bottled water electricity telephone call expenses
1048698 Car ndash car expenses chauffeur hired vehicle
Helping hands servants gardeners security
1048698 Club subscription
1048698 Educational benefits
Allowances
1048698 COLA ndash cost of living between home country and foreign country inflation
1048698 Relocation allowances
1048698 Hardship allowances
1048698 Separation allowances
1048698 Clothing allowances ndash very cold climates
1048698 Home leave allowances
1048698 Spouse assistance allowances
REWARDS SYSTEM
Reward System as Followed by Organisations
1 Incentive and Rewards
2 Competency Related Pay
3 Skill Based Pay
4 Team Based Rewards
5 Profit Sharing
7 Employee Ownership
8 Statutory and Voluntary Benefits
FORMS OF RECOGNITION
Examples of Formal Recognition
1 Milestone Service Anniversary Awards (5101520 25 years of service)
2 Ideas Improvement amp Performance Awards
3 Service Awards
a) Teamworkleadership
b) Customer Service
c) Citizenship
d) Innovation
e) Attendance
4 Awards would include
a) PlaquesDesk trophies
b) Certificates
c) GiftsCertificates
d) Picture in the webpage
FORMS OF RECOGNITION
Examples of Informal Recognition
1 Team Building Retreats
2 Acknowledgement of DeptDivision goals achieved
3 Project Completion meals
4 Birthday cakes and cards
5 Picnics
6 Staff Appreciation Day
7 Holiday Parties
8 Dress-up Days
9 Corporate Merchandise
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-
6
HRM CHALLENGES
bull Organizational Commitment and Empowerment (power sharing at the bottom of the pyramid)
bull Organizational Learning (teams ndash learning from failure)
bull Ethical Facetsbull Workplace Diversity
7
JOB ANALYSIS AND JOB DESIGN
8
Job Analysis
bull A job analysis is the process used to collect information about the duties responsibilities necessary skills outcomes and work environment of a particular job
bull It is a procedure through which you determine the duties of the positions and the characteristics of the people to hire for them The activity of job analysis gives us two results ndash job description and job specification
9
TYPES OF INFORMATION FOR JOB ANALYSIS
bull Work activities Information on the activities requires to complete the work such as cleaning selling and recruiting
bull Human behaviours The specialist collects information about human behaviours like sensing communicating deciding and writing
bull Machines tools equipment and work aids This category includes information regarding tools used materials processed and services rendered
bull Performance standards The information on the job performance standards in terms of quantity and quality of minimum standards acceptable
bull Job context Included here is information about job conditions work schedule and organizational and social context
bull Human requirements This includes information regarding the jobrsquos human requirements such as knowledge or skills (education training experience)
10
METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
bull Personal Observation (average conditions specific job needs not job behaviors ndash preferred for manual jobs not mental aspects)
bull Critical Incidents (behaviorally focused descriptions ndash lengthy ndash dissimilar behaviors)
bull Interview (lengthy distort information)bull Questionnaire Method (economical motivating employees
to complete the questionnaire)
11
Statement of human qualification necessary to do the job includes
1048698 Education
1048698 Experience
1048698 Training
1048698 Communication skills
1048698 Emotional characteristics
1048698 Physical effort
JOB SPECIFICATION
12
USE OF JOB ANALYSIS
bull Human resource planningbull Recruitmentbull Selectionbull Training bull Counseling bull Employee safety bull Performance appraisal bull Job evaluation
13
bull It integrates the work context (tasks functions and relationships) the rewards (extrinsic and intrinsic) and the qualifications required (skills knowledge abilities) for each job in a way that meets the needs of employees and the organizations
bull Job Enlargement bull Job Enrichment bull Job Rotation
JOB DESIGN
14
Job Characteristics
Skill Variety The extent to which the work requires several different activities for successful completion
Task Identity
The extent to which the job includes a ldquowholerdquo identifiable unit of work that is carried out from start to finish and that results in a visible outcome
Task Significance The impact the job has on other people
Autonomy The extent of individual freedom and discretion in the work and its scheduling
Feedback The amount of information received about how well or how poorly one has performed
15
HUMAN RESOURCE PLANNING
16
OBJECTIVES OF HRP
1 to prevent overstaffing and understaffing
2 to ensure employee availability
3 to ensure that the organization is responsive to the environment
4 to provide direction to all HR activities and
5 to build line and staff partnership
17
bull Environmental scanning
bull Forecasting and analyzing demand for human resources
bull Forecasting and analyzing supply of human resources
bull Developing action plans to match human resource demand and supplyndash HR Supply = HR demandndash HR Supply lt HR demand (deficitshortage)ndash HR Supply gt HR demand (surplus)
PROCESS OF HRP
18
bull Qualitative Methods
ndash Estimation (Centralized ndash HR Decentralized ndash Line Mgrs
ndash Expert Opinions
(a) Delphi techniques
(b) Group brainstorming
(c) Nominal group technique
(d) Averaging
ndash Sales force estimate
TECHNIQUES OF HR DEMAND FORECASTING
19
bull Quantitative Methods
bull Trend analysis and projection
bull Simulation models (probabilities of future events to estimate future employment levels)
bull Workload analysis (Both the number of employees and the kind of employees required to achieve organizational goals are identified)
bull Markov analysis
TECHNIQUES OF HR DEMAND FORECASTING
20
ATTRACTING THE TALENT RECRUITMENT
SELECTION AND OUTSOURCING
21
Internal Sources of Recruitment
1 Transfers
2 Promotions
3 Upgrading and demotion
4 Retired and retrenched employees
5 Deceased employees and disabled employees
SOURCES OF RECRUITMENT
22
External Sources of Recruitment
bull Press advertisements bull Educational institutesbull Placement agencies bull Employment exchanges bull Labour contractorsbull Unsolicited applicants bull Employee referralsrecommendations
SOURCES OF RECRUITMENT
23
THE SELECTION PROCESS
1 Pre screening
2 Initial interview
3 Reference and other checks
4 Application forms or lsquoblanksrsquo
5 Selection testing
6 Comprehensive interview
7 Job offer
8 Medical examination
24
Interviews
I Unstructured Interview
II Situational Interview
III Behavior Description Interviews
IV Comprehensive Structured Interviews
V Structured Behavioral Interview
25
PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
1048698 Unclear role of interviewer
1048698 Unprepared interviewer
1048698 Halo effect
1048698 Snap judgement
1048698 Personal biases
1048698 Ineffective communication
1048698 Contrast effect
1048698 Reflection effect
1048698 Satisfying onersquos own needs
26
bull INDUCTION
bull OUTSOURCING
27
COMPETENCY MAPPING AND ASSESSMENT CENTRES
28
Competencies
competencies are typically defined as a combination of knowledge skills abilities and other individual characteristics that can be reliably measured and that can be shown to differentiate performance
29
VARIOUS COMPETENCY MODELS
1048698Job Competencies Assessment Model interviews and
observations of outstanding and average performers
1048698Modified Job Competence Assessment Model a written account
of critical incidents (to reduce costs)
1048698Generic Model Overlay Method off-the-shelf
1048698Customized Generic Model Method tentative list of
competencies that are identified internally
1048698Flexible Job Competency Model Method under different conditions in the future
1048698Systems Method behaviors that may be important in the
future
30
HISTORY OF ASSESSMENT CENTRES
bull 1942
bull exceptional smartness
bull War Office Selection Boards
31
MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
Types of Psychological Tests
1048698 IQAchievement tests
1048698 Situational tests Situations are given and an individualrsquos behaviorresponse is observed
1048698 Psychometric tests
1048698 Personality Questionnaire
1048698 Interest Questionnaire
1048698 Values Questionnaire
32
MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
bull The Leaderless Group Discussion (LGD)bull In-basket Exercisebull Group Exercisesbull Behavioral Event Interviews
33
Difference between Assessment Centre and Development Center
34
PERFORMANCE PLANNING AND REVIEW
35
GOALS OF PERFORMANCE APPRAISAL
1048698 Each objective should be SMART ndash specific measurable agreed realistic and time-limited
1048698 Each objective must be in an area over which the employee has control
1048698 Give each objective a deadline
1048698 A clear target allows you to measure whether the employee is making the progress you expect
1048698 Provide information to assist in the HR decisions like promotions transfers etc
36
PROCESS OF PERFORMANCE APPRAISAL
bull Establishing Performance Standards
bull Communicating the Standards
37
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
bull Broadly all methods of appraisals can be divided into two different categories
bull 1048698 Past Oriented Methodsbull 1048698 Future Oriented Methods
38
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Past Oriented Methods
1 Rating Scales Rating scales consists of several numerical scales representing job related performance criterions such as dependability initiative output attendance attitude etc Each scales ranges from excellent to poor The total numerical scores are computed and final conclusions are derived
Advantages Adaptability easy to use low cost every type of job can be
evaluated large number of employees covered no formal training required
Disadvantages Raterrsquos biases
2 Checklist Under this method checklist of statements of traits of employee in the
form of Yes or No based questions is prepared Here the rater only does the
reporting or checking and HR department does the actual evaluation
Advantages Economy ease of administration limited training required
standardization
Disadvantages Raters biases use of improper weighs by HR does not allow rater
to give relative ratings
39
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
3 Forced Choice Method The series of statements arranged in the blocks of two or more are given and the rater indicates which statement is true or false The rater is forced to make a choice HR department does actual assessment
Advantages Absence of personal biases because of forced choice
Disadvantages Statements may be wrongly framed
4 Forced Distribution Method Here employees are clustered around a high point on a rating scale Rater is compelled to distribute the employees on all points on the scale It is assumed that the performance is conformed to normal distribution
Advantages Eliminates biasness
Disadvantages Assumption of normal distribution unrealistic errors of central
tendency
40
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
5 Critical Incidents Method The approach is focused on certain critical behaviors
of employee that makes all the difference in the performance Supervisors as and
when they occur record such incidents
Advantages Evaluations are based on actual job behaviors ratings are supported
by descriptions feedback is easy reduces recency biases chances of subordinate
improvement are high
Disadvantages Negative incidents can be prioritized forgetting incidents overly
close supervision feedback may be too much and may appear to be punishment
6 Behaviorally Anchored Rating Scales Statements of effective and ineffective
behaviors determine the points They are said to be behaviorally anchored The
rater is supposed to say which behavior describes the employee performance
Advantages Helps overcome rating errors
Disadvantages Suffers from distortions inherent in most rating techniques
41
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
7 Field Review Method This is an appraisal done by someone outside employeesrsquo own department usually from corporate or HR department
Advantages Useful for managerial level promotions when comparable
information is needed
Disadvantages Outsider is generally not familiar with employees work
environment Observation of actual behaviors not possible
8 Performance Tests amp Observations This is based on the test of knowledge or skills The tests may be written or an actual presentation of skills Tests must be reliable and validated to be useful
Advantages Tests may be apt to measure potential more than actual performance
Disadvantages Tests may suffer if costs of test development or administration are high
42
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Future Oriented Methods
1 Management by Objectives It means management by objectives and the
performance is rated against the achievement of objectives stated by the
management MBO process
(a) Establish goals and desired outcomes for each subordinate
(b) Setting performance standards
(c) Comparison of actual goals with goals attained by the employee
(d) Establish new goals and new strategies for goals not achieved in previous
year
43
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Future Oriented Methods
2 Psychological Appraisals
These appraisals are more directed to assess employeersquos potential for future performance rather than the past one It is done in the form of in-depth interviews psychological tests and discussion with supervisors and review of other evaluations
It is more focused on employees emotional intellectual and motivational and other personal characteristics affecting his performance This approach is slow and costly and may be useful for bright young members who may have considerable potential However quality of these appraisals largely depend upon the skills of psychologists who perform the evaluation
44
1 Leniency amp Severity
2 Central Tendency
3 Halo Effect
4 Primacy amp Recency Effect
5 Spillover Effects
6 Status Effect
Problems of RatingRating Biases
45
PERFORMANCE COACHING
The performance coaching process involves five strategies
1 Creating a partnership role To make employees realize that both employees and manger are responsible for performance and build trust amongst them
2 Commitment Inspiring employees to be committed to the goals
3 Competency development Awareness towards developing skills and
competencies required to reach to organizational goals
4 Perseverance Developing lsquonever say diersquo attitude among organizational members
5 Shaping the environment Creating conditions for employee development
46
THE COACHING DISCUSSION
Kinlawrsquos Approach
Kinlaw suggests a three-stage approach to the coaching discussion as follows
1048698 Confronting or presenting
1048698 Using reactions to develop information
1048698 Resolving or resolution
47
THE COACHING DISCUSSION
bull Fourniesrsquo Approach
bull Step 1 Get the employeersquos agreement that a problem existsbull Step 2 Mutually discuss alternative solutions to the problembull Step 3 Mutually agree on actions to be taken to solve the problembull Step 4 Follow-up to measure resultsbull Step 5 Recognize any achievement when it occurs
48
MENTORING
bull Mentorship is a process where an experienced person provides help guidance support to nurture and develop a less experienced person referred to as a proteacutegeacute apprentice mentee or (person) It improves the self esteem of mentee and increases hisher chance for success
49
MENTORING - Kinds
1048698 New-hire mentorship
1048698 High-potential mentorship
1048698 Mentorship in Education
50
POTENTIAL APPRAISAL CAREER AND SUCCESSION
PLANNING
51
POTENTIAL APPRAISAL
Purpose of Potential Appraisal
Potential appraisal serves the following purposes
1048698 To advise employees about their overall career development and future prospects
1048698 Help the organisation to chalk out succession plans
1048698 Motivate the employees to further develop their skills and competencies
1048698 To identify the training needs
52
POTENTIAL APPRAISAL
Techniques of Potential Appraisal
1048698 Self-appraisals
1048698 Peer appraisals
1048698 Superior appraisals
1048698 MBO
1048698 Psychological and psychometric tests
1048698 Management games like role playing
1048698 Leadership exercises etc
53
CAREER PLANNING
Steps in Career Planning Process
Step One Self Assessment
Step Two Goal Setting
Step Three AcademicCareer Options
Step Four Plan of Action
Step Five Catch Hold of Opportunities
54
bull Succession Planning refers to the process of developing the second line for taking up a higher role in the organization
SUCCESSION PLANNING
55
HR MEASUREMENT AND AUDIT
bull Audit helps the organization have a clear understanding of the lacunae and better align the HR processes with Business goals
bull The audit itself is a diagnostic tool not a prescriptive instrument It helps in identifying what is missing or needs to improve It is most useful when an organization is ready to act on the findings and to evolve its HR function to play a greater strategic role
56
WHY CONDUCT AN HR AUDIT
1048698 It helps promote more professionalism and professional management
1048698 HR audit helps an organization to be aware of its present practices policies
and their adherence
1048698 Benchmarking to improve HR practices
1048698 The organization can benchmark its processes with best-in-class organizations
1048698 HR audit suggest improvement measures keeping the organizational strategic goals and vision in mind
57
THE HR AUDIT PROCESS
InterviewsQuestionnaires
The audit team interviews the following
1048698 Top Management (CEO Unit Heads)
1048698 Line Managers (eg Managers in production quality purchase and marketing)
1048698 HRD Staff
1048698 Workmen and others
Observation and Recording
Follow-up and Corrections done
58
HUMAN RESOURCE ACCOUNTING
bull The American Accounting Associationrsquos Committee on Human Resource Accounting (1973) has defined Human Resource Accounting as ldquothe process of identifying and measuring data about human resources and communicating this information to interested partiesrdquo
bull It is the measurement and reporting of the cost and value of people in organizational Resources
59
METHODS OF HUMAN RESOURCE ACCOUNTING
Methods of Valuing and Accounting of Human Resources
The methods to value and account for human resources can be classified into the following categories
1 Methods based on costs (which include costs incurred by the company to recruit hire train and develop human resources)
2 Methods based on economic value of human resources and the capitalisation of companyrsquos earnings
60
HUMAN RESOURCE ACCOUNTING
Methods based on Cost
Historical Cost Method
Under this method the cost of acquisition ie selection hiring training costs of employees are capitalised and written off over the expected useful life of the employees In case the personnel leave the company before the anticipated period of service then the unamortised portion of costs remaining in the companyrsquos books is written off against the profit and loss account in that year If the period of service exceeds the anticipated time then amortisation of costs is rescheduled
Replacement Cost Method
Under this method the human resources are valued at their replacement cost ie The monetary implications of replacing existing personnel
Standard Cost Method
Under this method standard costs of recruiting hiring training and developing per grade of employees are determined annually The total standard cost for all personnel of the company is the value of human resources
61
HUMAN RESOURCE ACCOUNTING
bull HR Accounting based on Value
bull Economic Value Method
bull Under this method the net present value of incremental cash flows attributed to human resources is taken as the asset value
62
HUMAN RESOURCE INFORMATION SYSTEMS(HRIS)
bull An information system may be automated or manual and involves collectingprocessing transmitting and disseminating data that represents user information
63
HRIS ndash APPLICATION AND UTILITIES
Personnel administration It will encompass information about each employee
such as name address personal details etc
1048698 Salary administration Generate personnel cost reports conduct lsquowhat if
analysisrsquo provide compensation history
1048698 Leave and absence recording Essentially being able to provide comprehensive
method of tracking absences late coming reports on excess leave availed leave
lapsed
1048698 Skill inventory Recording of acquired skills and monitor the skill database at the
employee and organisational level
1048698 Performance appraisal The system should record individual employee
performance appraisal data such as appraisal ratings due date of appraisal
training needs identified during the appraisal process
1048698 Recruitment Record recruitment cost lead time to fill a vacant position
recruitment methods applicant and resume management
1048698 Career planning HRIS System can provide succession plan reports identifying
employees earmarked for future position
64
HRIS ndash DISADVANTAGES
May be expensive ndash financing the technology
1048698 Thorough understanding of what constitutes quality information for the user
1048698 Computer cannot substitute human beings
HUMAN RESOURCE DEVELOPMENT SYSTEM
66
HRD
HRD play a very crucial role in organization Henery Ford once said ldquotake out my building take out my machines take out all capital but leave my men with me and I will become Henry Ford againrdquo HRD is considered as key to higher productivity better relations and greater profitability for any organization
According to Daftur
ldquoHRD is a system and process concerned with an organized series of learning activities within specified time limits designed to produce behavioral changes in the learner in such a way that it acquires desired level of competence for present or future rolerdquo
67
HRDORGANIZATION ALIGNMENT MODEL
TRAINING AND DEVELOPMENT
69
NEED FOR TRAINING AND DEVELOPMENT
bull Technological advances bull Organizational complexity bull Organizational tenure bull Human relations movement
70
THE TRAINING PROCESS
71
Needs Assessment
72
bull Lecturesbull Audio Visualsbull On-the-job Training (OJT)bull Programmed Instructionbull Computer Assisted Instruction (CAI)bull Simulation
Methods and Techniques of Training
73
Training Methods for Management Development
1048698 Seminars and Conferences
1048698 Case Study
1048698 Role Playing
1048698 Management Games
1048698 Sensitivity Training
74
bull Implementation of the Training Program
bull Evaluation of Training Program
75
Kirkpatrick Model for Evaluating Effectiveness of Training Programs
1 Reactions
2 Learning
3 Behaviors
Results or Return on Investment (ROI)
76
SPECIAL TOPICS IN TRAINING ANDDEVELOPMENT
bull Cross-cultural Training
bull Orientation Training
bull Team-training and Cross-training
bull Diversity Training
COMPENSATION AND REWARDS
78
COMPENSATION OVERVIEW
Compensation is the process of directly and indirectly rewarding employees on a current or deferred basis for their performance of assigned tasks It consists of
1048698 Direct Financial Compensation Wages salaries bonuses commissions
1048698 Indirect Financial Compensation All financial rewards not included in direct compensation (benefits)
1048698 Non-financial Compensation Satisfaction received from the job or from the psychological andor physical environment of the job
JOB EVALUATION TECHNIQUE
The general step-wise procedure for job evaluation is as under
1 Select the group of jobs
2 Study the job (job analysis)
3 Prepare job description ndash approval
4 Device an evaluation plan ndash common characteristicstraits
5 Establish a committee of raters and rateevaluate
6 Group or classify the jobs
7 Convert job grades to money value along with Wage survey
8 Obtain approval from Union and Management
9 Establish a suitable grievance procedure
COMPONENTS OF COMPENSATION SYSTEM
1 Basic WagesSalaries
2 Dearness Allowance
3 Bonus
4 Commissions
5 Mixed Plans
6 Piece Rate Wages
7 Sign on Bonuses
8 Profit Sharing Payments
9 Fringe Benefits
COMPENSATION EQUITY
1048698 External Equity Employees are paid comparably to those who perform similar jobs in other industries
1048698 Internal Equity Employees are paid according to relative value of their jobs within an organisation
1048698 Employee Equity Individuals performing similar jobs for the same firm are rewarded according to factors unique to the employee such as performance level or seniority
1048698 Team Equity More productive teams receive greater rewards than less productive groups
INTERNATIONAL COMPENSATION
Elements of Expatriate Compensation
Basic Pay Amount of money that an expatriate receives from home country Used for
Bonus calculation
Benefits
1048698 One third of compensation
1048698 Extra vacation special leaves air fares for their families for an annual visit home
emergency leaves
1048698 Housing
1048698 Utilities ndash air conditioner bottled water electricity telephone call expenses
1048698 Car ndash car expenses chauffeur hired vehicle
Helping hands servants gardeners security
1048698 Club subscription
1048698 Educational benefits
Allowances
1048698 COLA ndash cost of living between home country and foreign country inflation
1048698 Relocation allowances
1048698 Hardship allowances
1048698 Separation allowances
1048698 Clothing allowances ndash very cold climates
1048698 Home leave allowances
1048698 Spouse assistance allowances
REWARDS SYSTEM
Reward System as Followed by Organisations
1 Incentive and Rewards
2 Competency Related Pay
3 Skill Based Pay
4 Team Based Rewards
5 Profit Sharing
7 Employee Ownership
8 Statutory and Voluntary Benefits
FORMS OF RECOGNITION
Examples of Formal Recognition
1 Milestone Service Anniversary Awards (5101520 25 years of service)
2 Ideas Improvement amp Performance Awards
3 Service Awards
a) Teamworkleadership
b) Customer Service
c) Citizenship
d) Innovation
e) Attendance
4 Awards would include
a) PlaquesDesk trophies
b) Certificates
c) GiftsCertificates
d) Picture in the webpage
FORMS OF RECOGNITION
Examples of Informal Recognition
1 Team Building Retreats
2 Acknowledgement of DeptDivision goals achieved
3 Project Completion meals
4 Birthday cakes and cards
5 Picnics
6 Staff Appreciation Day
7 Holiday Parties
8 Dress-up Days
9 Corporate Merchandise
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-
7
JOB ANALYSIS AND JOB DESIGN
8
Job Analysis
bull A job analysis is the process used to collect information about the duties responsibilities necessary skills outcomes and work environment of a particular job
bull It is a procedure through which you determine the duties of the positions and the characteristics of the people to hire for them The activity of job analysis gives us two results ndash job description and job specification
9
TYPES OF INFORMATION FOR JOB ANALYSIS
bull Work activities Information on the activities requires to complete the work such as cleaning selling and recruiting
bull Human behaviours The specialist collects information about human behaviours like sensing communicating deciding and writing
bull Machines tools equipment and work aids This category includes information regarding tools used materials processed and services rendered
bull Performance standards The information on the job performance standards in terms of quantity and quality of minimum standards acceptable
bull Job context Included here is information about job conditions work schedule and organizational and social context
bull Human requirements This includes information regarding the jobrsquos human requirements such as knowledge or skills (education training experience)
10
METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
bull Personal Observation (average conditions specific job needs not job behaviors ndash preferred for manual jobs not mental aspects)
bull Critical Incidents (behaviorally focused descriptions ndash lengthy ndash dissimilar behaviors)
bull Interview (lengthy distort information)bull Questionnaire Method (economical motivating employees
to complete the questionnaire)
11
Statement of human qualification necessary to do the job includes
1048698 Education
1048698 Experience
1048698 Training
1048698 Communication skills
1048698 Emotional characteristics
1048698 Physical effort
JOB SPECIFICATION
12
USE OF JOB ANALYSIS
bull Human resource planningbull Recruitmentbull Selectionbull Training bull Counseling bull Employee safety bull Performance appraisal bull Job evaluation
13
bull It integrates the work context (tasks functions and relationships) the rewards (extrinsic and intrinsic) and the qualifications required (skills knowledge abilities) for each job in a way that meets the needs of employees and the organizations
bull Job Enlargement bull Job Enrichment bull Job Rotation
JOB DESIGN
14
Job Characteristics
Skill Variety The extent to which the work requires several different activities for successful completion
Task Identity
The extent to which the job includes a ldquowholerdquo identifiable unit of work that is carried out from start to finish and that results in a visible outcome
Task Significance The impact the job has on other people
Autonomy The extent of individual freedom and discretion in the work and its scheduling
Feedback The amount of information received about how well or how poorly one has performed
15
HUMAN RESOURCE PLANNING
16
OBJECTIVES OF HRP
1 to prevent overstaffing and understaffing
2 to ensure employee availability
3 to ensure that the organization is responsive to the environment
4 to provide direction to all HR activities and
5 to build line and staff partnership
17
bull Environmental scanning
bull Forecasting and analyzing demand for human resources
bull Forecasting and analyzing supply of human resources
bull Developing action plans to match human resource demand and supplyndash HR Supply = HR demandndash HR Supply lt HR demand (deficitshortage)ndash HR Supply gt HR demand (surplus)
PROCESS OF HRP
18
bull Qualitative Methods
ndash Estimation (Centralized ndash HR Decentralized ndash Line Mgrs
ndash Expert Opinions
(a) Delphi techniques
(b) Group brainstorming
(c) Nominal group technique
(d) Averaging
ndash Sales force estimate
TECHNIQUES OF HR DEMAND FORECASTING
19
bull Quantitative Methods
bull Trend analysis and projection
bull Simulation models (probabilities of future events to estimate future employment levels)
bull Workload analysis (Both the number of employees and the kind of employees required to achieve organizational goals are identified)
bull Markov analysis
TECHNIQUES OF HR DEMAND FORECASTING
20
ATTRACTING THE TALENT RECRUITMENT
SELECTION AND OUTSOURCING
21
Internal Sources of Recruitment
1 Transfers
2 Promotions
3 Upgrading and demotion
4 Retired and retrenched employees
5 Deceased employees and disabled employees
SOURCES OF RECRUITMENT
22
External Sources of Recruitment
bull Press advertisements bull Educational institutesbull Placement agencies bull Employment exchanges bull Labour contractorsbull Unsolicited applicants bull Employee referralsrecommendations
SOURCES OF RECRUITMENT
23
THE SELECTION PROCESS
1 Pre screening
2 Initial interview
3 Reference and other checks
4 Application forms or lsquoblanksrsquo
5 Selection testing
6 Comprehensive interview
7 Job offer
8 Medical examination
24
Interviews
I Unstructured Interview
II Situational Interview
III Behavior Description Interviews
IV Comprehensive Structured Interviews
V Structured Behavioral Interview
25
PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
1048698 Unclear role of interviewer
1048698 Unprepared interviewer
1048698 Halo effect
1048698 Snap judgement
1048698 Personal biases
1048698 Ineffective communication
1048698 Contrast effect
1048698 Reflection effect
1048698 Satisfying onersquos own needs
26
bull INDUCTION
bull OUTSOURCING
27
COMPETENCY MAPPING AND ASSESSMENT CENTRES
28
Competencies
competencies are typically defined as a combination of knowledge skills abilities and other individual characteristics that can be reliably measured and that can be shown to differentiate performance
29
VARIOUS COMPETENCY MODELS
1048698Job Competencies Assessment Model interviews and
observations of outstanding and average performers
1048698Modified Job Competence Assessment Model a written account
of critical incidents (to reduce costs)
1048698Generic Model Overlay Method off-the-shelf
1048698Customized Generic Model Method tentative list of
competencies that are identified internally
1048698Flexible Job Competency Model Method under different conditions in the future
1048698Systems Method behaviors that may be important in the
future
30
HISTORY OF ASSESSMENT CENTRES
bull 1942
bull exceptional smartness
bull War Office Selection Boards
31
MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
Types of Psychological Tests
1048698 IQAchievement tests
1048698 Situational tests Situations are given and an individualrsquos behaviorresponse is observed
1048698 Psychometric tests
1048698 Personality Questionnaire
1048698 Interest Questionnaire
1048698 Values Questionnaire
32
MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
bull The Leaderless Group Discussion (LGD)bull In-basket Exercisebull Group Exercisesbull Behavioral Event Interviews
33
Difference between Assessment Centre and Development Center
34
PERFORMANCE PLANNING AND REVIEW
35
GOALS OF PERFORMANCE APPRAISAL
1048698 Each objective should be SMART ndash specific measurable agreed realistic and time-limited
1048698 Each objective must be in an area over which the employee has control
1048698 Give each objective a deadline
1048698 A clear target allows you to measure whether the employee is making the progress you expect
1048698 Provide information to assist in the HR decisions like promotions transfers etc
36
PROCESS OF PERFORMANCE APPRAISAL
bull Establishing Performance Standards
bull Communicating the Standards
37
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
bull Broadly all methods of appraisals can be divided into two different categories
bull 1048698 Past Oriented Methodsbull 1048698 Future Oriented Methods
38
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Past Oriented Methods
1 Rating Scales Rating scales consists of several numerical scales representing job related performance criterions such as dependability initiative output attendance attitude etc Each scales ranges from excellent to poor The total numerical scores are computed and final conclusions are derived
Advantages Adaptability easy to use low cost every type of job can be
evaluated large number of employees covered no formal training required
Disadvantages Raterrsquos biases
2 Checklist Under this method checklist of statements of traits of employee in the
form of Yes or No based questions is prepared Here the rater only does the
reporting or checking and HR department does the actual evaluation
Advantages Economy ease of administration limited training required
standardization
Disadvantages Raters biases use of improper weighs by HR does not allow rater
to give relative ratings
39
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
3 Forced Choice Method The series of statements arranged in the blocks of two or more are given and the rater indicates which statement is true or false The rater is forced to make a choice HR department does actual assessment
Advantages Absence of personal biases because of forced choice
Disadvantages Statements may be wrongly framed
4 Forced Distribution Method Here employees are clustered around a high point on a rating scale Rater is compelled to distribute the employees on all points on the scale It is assumed that the performance is conformed to normal distribution
Advantages Eliminates biasness
Disadvantages Assumption of normal distribution unrealistic errors of central
tendency
40
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
5 Critical Incidents Method The approach is focused on certain critical behaviors
of employee that makes all the difference in the performance Supervisors as and
when they occur record such incidents
Advantages Evaluations are based on actual job behaviors ratings are supported
by descriptions feedback is easy reduces recency biases chances of subordinate
improvement are high
Disadvantages Negative incidents can be prioritized forgetting incidents overly
close supervision feedback may be too much and may appear to be punishment
6 Behaviorally Anchored Rating Scales Statements of effective and ineffective
behaviors determine the points They are said to be behaviorally anchored The
rater is supposed to say which behavior describes the employee performance
Advantages Helps overcome rating errors
Disadvantages Suffers from distortions inherent in most rating techniques
41
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
7 Field Review Method This is an appraisal done by someone outside employeesrsquo own department usually from corporate or HR department
Advantages Useful for managerial level promotions when comparable
information is needed
Disadvantages Outsider is generally not familiar with employees work
environment Observation of actual behaviors not possible
8 Performance Tests amp Observations This is based on the test of knowledge or skills The tests may be written or an actual presentation of skills Tests must be reliable and validated to be useful
Advantages Tests may be apt to measure potential more than actual performance
Disadvantages Tests may suffer if costs of test development or administration are high
42
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Future Oriented Methods
1 Management by Objectives It means management by objectives and the
performance is rated against the achievement of objectives stated by the
management MBO process
(a) Establish goals and desired outcomes for each subordinate
(b) Setting performance standards
(c) Comparison of actual goals with goals attained by the employee
(d) Establish new goals and new strategies for goals not achieved in previous
year
43
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Future Oriented Methods
2 Psychological Appraisals
These appraisals are more directed to assess employeersquos potential for future performance rather than the past one It is done in the form of in-depth interviews psychological tests and discussion with supervisors and review of other evaluations
It is more focused on employees emotional intellectual and motivational and other personal characteristics affecting his performance This approach is slow and costly and may be useful for bright young members who may have considerable potential However quality of these appraisals largely depend upon the skills of psychologists who perform the evaluation
44
1 Leniency amp Severity
2 Central Tendency
3 Halo Effect
4 Primacy amp Recency Effect
5 Spillover Effects
6 Status Effect
Problems of RatingRating Biases
45
PERFORMANCE COACHING
The performance coaching process involves five strategies
1 Creating a partnership role To make employees realize that both employees and manger are responsible for performance and build trust amongst them
2 Commitment Inspiring employees to be committed to the goals
3 Competency development Awareness towards developing skills and
competencies required to reach to organizational goals
4 Perseverance Developing lsquonever say diersquo attitude among organizational members
5 Shaping the environment Creating conditions for employee development
46
THE COACHING DISCUSSION
Kinlawrsquos Approach
Kinlaw suggests a three-stage approach to the coaching discussion as follows
1048698 Confronting or presenting
1048698 Using reactions to develop information
1048698 Resolving or resolution
47
THE COACHING DISCUSSION
bull Fourniesrsquo Approach
bull Step 1 Get the employeersquos agreement that a problem existsbull Step 2 Mutually discuss alternative solutions to the problembull Step 3 Mutually agree on actions to be taken to solve the problembull Step 4 Follow-up to measure resultsbull Step 5 Recognize any achievement when it occurs
48
MENTORING
bull Mentorship is a process where an experienced person provides help guidance support to nurture and develop a less experienced person referred to as a proteacutegeacute apprentice mentee or (person) It improves the self esteem of mentee and increases hisher chance for success
49
MENTORING - Kinds
1048698 New-hire mentorship
1048698 High-potential mentorship
1048698 Mentorship in Education
50
POTENTIAL APPRAISAL CAREER AND SUCCESSION
PLANNING
51
POTENTIAL APPRAISAL
Purpose of Potential Appraisal
Potential appraisal serves the following purposes
1048698 To advise employees about their overall career development and future prospects
1048698 Help the organisation to chalk out succession plans
1048698 Motivate the employees to further develop their skills and competencies
1048698 To identify the training needs
52
POTENTIAL APPRAISAL
Techniques of Potential Appraisal
1048698 Self-appraisals
1048698 Peer appraisals
1048698 Superior appraisals
1048698 MBO
1048698 Psychological and psychometric tests
1048698 Management games like role playing
1048698 Leadership exercises etc
53
CAREER PLANNING
Steps in Career Planning Process
Step One Self Assessment
Step Two Goal Setting
Step Three AcademicCareer Options
Step Four Plan of Action
Step Five Catch Hold of Opportunities
54
bull Succession Planning refers to the process of developing the second line for taking up a higher role in the organization
SUCCESSION PLANNING
55
HR MEASUREMENT AND AUDIT
bull Audit helps the organization have a clear understanding of the lacunae and better align the HR processes with Business goals
bull The audit itself is a diagnostic tool not a prescriptive instrument It helps in identifying what is missing or needs to improve It is most useful when an organization is ready to act on the findings and to evolve its HR function to play a greater strategic role
56
WHY CONDUCT AN HR AUDIT
1048698 It helps promote more professionalism and professional management
1048698 HR audit helps an organization to be aware of its present practices policies
and their adherence
1048698 Benchmarking to improve HR practices
1048698 The organization can benchmark its processes with best-in-class organizations
1048698 HR audit suggest improvement measures keeping the organizational strategic goals and vision in mind
57
THE HR AUDIT PROCESS
InterviewsQuestionnaires
The audit team interviews the following
1048698 Top Management (CEO Unit Heads)
1048698 Line Managers (eg Managers in production quality purchase and marketing)
1048698 HRD Staff
1048698 Workmen and others
Observation and Recording
Follow-up and Corrections done
58
HUMAN RESOURCE ACCOUNTING
bull The American Accounting Associationrsquos Committee on Human Resource Accounting (1973) has defined Human Resource Accounting as ldquothe process of identifying and measuring data about human resources and communicating this information to interested partiesrdquo
bull It is the measurement and reporting of the cost and value of people in organizational Resources
59
METHODS OF HUMAN RESOURCE ACCOUNTING
Methods of Valuing and Accounting of Human Resources
The methods to value and account for human resources can be classified into the following categories
1 Methods based on costs (which include costs incurred by the company to recruit hire train and develop human resources)
2 Methods based on economic value of human resources and the capitalisation of companyrsquos earnings
60
HUMAN RESOURCE ACCOUNTING
Methods based on Cost
Historical Cost Method
Under this method the cost of acquisition ie selection hiring training costs of employees are capitalised and written off over the expected useful life of the employees In case the personnel leave the company before the anticipated period of service then the unamortised portion of costs remaining in the companyrsquos books is written off against the profit and loss account in that year If the period of service exceeds the anticipated time then amortisation of costs is rescheduled
Replacement Cost Method
Under this method the human resources are valued at their replacement cost ie The monetary implications of replacing existing personnel
Standard Cost Method
Under this method standard costs of recruiting hiring training and developing per grade of employees are determined annually The total standard cost for all personnel of the company is the value of human resources
61
HUMAN RESOURCE ACCOUNTING
bull HR Accounting based on Value
bull Economic Value Method
bull Under this method the net present value of incremental cash flows attributed to human resources is taken as the asset value
62
HUMAN RESOURCE INFORMATION SYSTEMS(HRIS)
bull An information system may be automated or manual and involves collectingprocessing transmitting and disseminating data that represents user information
63
HRIS ndash APPLICATION AND UTILITIES
Personnel administration It will encompass information about each employee
such as name address personal details etc
1048698 Salary administration Generate personnel cost reports conduct lsquowhat if
analysisrsquo provide compensation history
1048698 Leave and absence recording Essentially being able to provide comprehensive
method of tracking absences late coming reports on excess leave availed leave
lapsed
1048698 Skill inventory Recording of acquired skills and monitor the skill database at the
employee and organisational level
1048698 Performance appraisal The system should record individual employee
performance appraisal data such as appraisal ratings due date of appraisal
training needs identified during the appraisal process
1048698 Recruitment Record recruitment cost lead time to fill a vacant position
recruitment methods applicant and resume management
1048698 Career planning HRIS System can provide succession plan reports identifying
employees earmarked for future position
64
HRIS ndash DISADVANTAGES
May be expensive ndash financing the technology
1048698 Thorough understanding of what constitutes quality information for the user
1048698 Computer cannot substitute human beings
HUMAN RESOURCE DEVELOPMENT SYSTEM
66
HRD
HRD play a very crucial role in organization Henery Ford once said ldquotake out my building take out my machines take out all capital but leave my men with me and I will become Henry Ford againrdquo HRD is considered as key to higher productivity better relations and greater profitability for any organization
According to Daftur
ldquoHRD is a system and process concerned with an organized series of learning activities within specified time limits designed to produce behavioral changes in the learner in such a way that it acquires desired level of competence for present or future rolerdquo
67
HRDORGANIZATION ALIGNMENT MODEL
TRAINING AND DEVELOPMENT
69
NEED FOR TRAINING AND DEVELOPMENT
bull Technological advances bull Organizational complexity bull Organizational tenure bull Human relations movement
70
THE TRAINING PROCESS
71
Needs Assessment
72
bull Lecturesbull Audio Visualsbull On-the-job Training (OJT)bull Programmed Instructionbull Computer Assisted Instruction (CAI)bull Simulation
Methods and Techniques of Training
73
Training Methods for Management Development
1048698 Seminars and Conferences
1048698 Case Study
1048698 Role Playing
1048698 Management Games
1048698 Sensitivity Training
74
bull Implementation of the Training Program
bull Evaluation of Training Program
75
Kirkpatrick Model for Evaluating Effectiveness of Training Programs
1 Reactions
2 Learning
3 Behaviors
Results or Return on Investment (ROI)
76
SPECIAL TOPICS IN TRAINING ANDDEVELOPMENT
bull Cross-cultural Training
bull Orientation Training
bull Team-training and Cross-training
bull Diversity Training
COMPENSATION AND REWARDS
78
COMPENSATION OVERVIEW
Compensation is the process of directly and indirectly rewarding employees on a current or deferred basis for their performance of assigned tasks It consists of
1048698 Direct Financial Compensation Wages salaries bonuses commissions
1048698 Indirect Financial Compensation All financial rewards not included in direct compensation (benefits)
1048698 Non-financial Compensation Satisfaction received from the job or from the psychological andor physical environment of the job
JOB EVALUATION TECHNIQUE
The general step-wise procedure for job evaluation is as under
1 Select the group of jobs
2 Study the job (job analysis)
3 Prepare job description ndash approval
4 Device an evaluation plan ndash common characteristicstraits
5 Establish a committee of raters and rateevaluate
6 Group or classify the jobs
7 Convert job grades to money value along with Wage survey
8 Obtain approval from Union and Management
9 Establish a suitable grievance procedure
COMPONENTS OF COMPENSATION SYSTEM
1 Basic WagesSalaries
2 Dearness Allowance
3 Bonus
4 Commissions
5 Mixed Plans
6 Piece Rate Wages
7 Sign on Bonuses
8 Profit Sharing Payments
9 Fringe Benefits
COMPENSATION EQUITY
1048698 External Equity Employees are paid comparably to those who perform similar jobs in other industries
1048698 Internal Equity Employees are paid according to relative value of their jobs within an organisation
1048698 Employee Equity Individuals performing similar jobs for the same firm are rewarded according to factors unique to the employee such as performance level or seniority
1048698 Team Equity More productive teams receive greater rewards than less productive groups
INTERNATIONAL COMPENSATION
Elements of Expatriate Compensation
Basic Pay Amount of money that an expatriate receives from home country Used for
Bonus calculation
Benefits
1048698 One third of compensation
1048698 Extra vacation special leaves air fares for their families for an annual visit home
emergency leaves
1048698 Housing
1048698 Utilities ndash air conditioner bottled water electricity telephone call expenses
1048698 Car ndash car expenses chauffeur hired vehicle
Helping hands servants gardeners security
1048698 Club subscription
1048698 Educational benefits
Allowances
1048698 COLA ndash cost of living between home country and foreign country inflation
1048698 Relocation allowances
1048698 Hardship allowances
1048698 Separation allowances
1048698 Clothing allowances ndash very cold climates
1048698 Home leave allowances
1048698 Spouse assistance allowances
REWARDS SYSTEM
Reward System as Followed by Organisations
1 Incentive and Rewards
2 Competency Related Pay
3 Skill Based Pay
4 Team Based Rewards
5 Profit Sharing
7 Employee Ownership
8 Statutory and Voluntary Benefits
FORMS OF RECOGNITION
Examples of Formal Recognition
1 Milestone Service Anniversary Awards (5101520 25 years of service)
2 Ideas Improvement amp Performance Awards
3 Service Awards
a) Teamworkleadership
b) Customer Service
c) Citizenship
d) Innovation
e) Attendance
4 Awards would include
a) PlaquesDesk trophies
b) Certificates
c) GiftsCertificates
d) Picture in the webpage
FORMS OF RECOGNITION
Examples of Informal Recognition
1 Team Building Retreats
2 Acknowledgement of DeptDivision goals achieved
3 Project Completion meals
4 Birthday cakes and cards
5 Picnics
6 Staff Appreciation Day
7 Holiday Parties
8 Dress-up Days
9 Corporate Merchandise
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-
8
Job Analysis
bull A job analysis is the process used to collect information about the duties responsibilities necessary skills outcomes and work environment of a particular job
bull It is a procedure through which you determine the duties of the positions and the characteristics of the people to hire for them The activity of job analysis gives us two results ndash job description and job specification
9
TYPES OF INFORMATION FOR JOB ANALYSIS
bull Work activities Information on the activities requires to complete the work such as cleaning selling and recruiting
bull Human behaviours The specialist collects information about human behaviours like sensing communicating deciding and writing
bull Machines tools equipment and work aids This category includes information regarding tools used materials processed and services rendered
bull Performance standards The information on the job performance standards in terms of quantity and quality of minimum standards acceptable
bull Job context Included here is information about job conditions work schedule and organizational and social context
bull Human requirements This includes information regarding the jobrsquos human requirements such as knowledge or skills (education training experience)
10
METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
bull Personal Observation (average conditions specific job needs not job behaviors ndash preferred for manual jobs not mental aspects)
bull Critical Incidents (behaviorally focused descriptions ndash lengthy ndash dissimilar behaviors)
bull Interview (lengthy distort information)bull Questionnaire Method (economical motivating employees
to complete the questionnaire)
11
Statement of human qualification necessary to do the job includes
1048698 Education
1048698 Experience
1048698 Training
1048698 Communication skills
1048698 Emotional characteristics
1048698 Physical effort
JOB SPECIFICATION
12
USE OF JOB ANALYSIS
bull Human resource planningbull Recruitmentbull Selectionbull Training bull Counseling bull Employee safety bull Performance appraisal bull Job evaluation
13
bull It integrates the work context (tasks functions and relationships) the rewards (extrinsic and intrinsic) and the qualifications required (skills knowledge abilities) for each job in a way that meets the needs of employees and the organizations
bull Job Enlargement bull Job Enrichment bull Job Rotation
JOB DESIGN
14
Job Characteristics
Skill Variety The extent to which the work requires several different activities for successful completion
Task Identity
The extent to which the job includes a ldquowholerdquo identifiable unit of work that is carried out from start to finish and that results in a visible outcome
Task Significance The impact the job has on other people
Autonomy The extent of individual freedom and discretion in the work and its scheduling
Feedback The amount of information received about how well or how poorly one has performed
15
HUMAN RESOURCE PLANNING
16
OBJECTIVES OF HRP
1 to prevent overstaffing and understaffing
2 to ensure employee availability
3 to ensure that the organization is responsive to the environment
4 to provide direction to all HR activities and
5 to build line and staff partnership
17
bull Environmental scanning
bull Forecasting and analyzing demand for human resources
bull Forecasting and analyzing supply of human resources
bull Developing action plans to match human resource demand and supplyndash HR Supply = HR demandndash HR Supply lt HR demand (deficitshortage)ndash HR Supply gt HR demand (surplus)
PROCESS OF HRP
18
bull Qualitative Methods
ndash Estimation (Centralized ndash HR Decentralized ndash Line Mgrs
ndash Expert Opinions
(a) Delphi techniques
(b) Group brainstorming
(c) Nominal group technique
(d) Averaging
ndash Sales force estimate
TECHNIQUES OF HR DEMAND FORECASTING
19
bull Quantitative Methods
bull Trend analysis and projection
bull Simulation models (probabilities of future events to estimate future employment levels)
bull Workload analysis (Both the number of employees and the kind of employees required to achieve organizational goals are identified)
bull Markov analysis
TECHNIQUES OF HR DEMAND FORECASTING
20
ATTRACTING THE TALENT RECRUITMENT
SELECTION AND OUTSOURCING
21
Internal Sources of Recruitment
1 Transfers
2 Promotions
3 Upgrading and demotion
4 Retired and retrenched employees
5 Deceased employees and disabled employees
SOURCES OF RECRUITMENT
22
External Sources of Recruitment
bull Press advertisements bull Educational institutesbull Placement agencies bull Employment exchanges bull Labour contractorsbull Unsolicited applicants bull Employee referralsrecommendations
SOURCES OF RECRUITMENT
23
THE SELECTION PROCESS
1 Pre screening
2 Initial interview
3 Reference and other checks
4 Application forms or lsquoblanksrsquo
5 Selection testing
6 Comprehensive interview
7 Job offer
8 Medical examination
24
Interviews
I Unstructured Interview
II Situational Interview
III Behavior Description Interviews
IV Comprehensive Structured Interviews
V Structured Behavioral Interview
25
PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
1048698 Unclear role of interviewer
1048698 Unprepared interviewer
1048698 Halo effect
1048698 Snap judgement
1048698 Personal biases
1048698 Ineffective communication
1048698 Contrast effect
1048698 Reflection effect
1048698 Satisfying onersquos own needs
26
bull INDUCTION
bull OUTSOURCING
27
COMPETENCY MAPPING AND ASSESSMENT CENTRES
28
Competencies
competencies are typically defined as a combination of knowledge skills abilities and other individual characteristics that can be reliably measured and that can be shown to differentiate performance
29
VARIOUS COMPETENCY MODELS
1048698Job Competencies Assessment Model interviews and
observations of outstanding and average performers
1048698Modified Job Competence Assessment Model a written account
of critical incidents (to reduce costs)
1048698Generic Model Overlay Method off-the-shelf
1048698Customized Generic Model Method tentative list of
competencies that are identified internally
1048698Flexible Job Competency Model Method under different conditions in the future
1048698Systems Method behaviors that may be important in the
future
30
HISTORY OF ASSESSMENT CENTRES
bull 1942
bull exceptional smartness
bull War Office Selection Boards
31
MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
Types of Psychological Tests
1048698 IQAchievement tests
1048698 Situational tests Situations are given and an individualrsquos behaviorresponse is observed
1048698 Psychometric tests
1048698 Personality Questionnaire
1048698 Interest Questionnaire
1048698 Values Questionnaire
32
MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
bull The Leaderless Group Discussion (LGD)bull In-basket Exercisebull Group Exercisesbull Behavioral Event Interviews
33
Difference between Assessment Centre and Development Center
34
PERFORMANCE PLANNING AND REVIEW
35
GOALS OF PERFORMANCE APPRAISAL
1048698 Each objective should be SMART ndash specific measurable agreed realistic and time-limited
1048698 Each objective must be in an area over which the employee has control
1048698 Give each objective a deadline
1048698 A clear target allows you to measure whether the employee is making the progress you expect
1048698 Provide information to assist in the HR decisions like promotions transfers etc
36
PROCESS OF PERFORMANCE APPRAISAL
bull Establishing Performance Standards
bull Communicating the Standards
37
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
bull Broadly all methods of appraisals can be divided into two different categories
bull 1048698 Past Oriented Methodsbull 1048698 Future Oriented Methods
38
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Past Oriented Methods
1 Rating Scales Rating scales consists of several numerical scales representing job related performance criterions such as dependability initiative output attendance attitude etc Each scales ranges from excellent to poor The total numerical scores are computed and final conclusions are derived
Advantages Adaptability easy to use low cost every type of job can be
evaluated large number of employees covered no formal training required
Disadvantages Raterrsquos biases
2 Checklist Under this method checklist of statements of traits of employee in the
form of Yes or No based questions is prepared Here the rater only does the
reporting or checking and HR department does the actual evaluation
Advantages Economy ease of administration limited training required
standardization
Disadvantages Raters biases use of improper weighs by HR does not allow rater
to give relative ratings
39
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
3 Forced Choice Method The series of statements arranged in the blocks of two or more are given and the rater indicates which statement is true or false The rater is forced to make a choice HR department does actual assessment
Advantages Absence of personal biases because of forced choice
Disadvantages Statements may be wrongly framed
4 Forced Distribution Method Here employees are clustered around a high point on a rating scale Rater is compelled to distribute the employees on all points on the scale It is assumed that the performance is conformed to normal distribution
Advantages Eliminates biasness
Disadvantages Assumption of normal distribution unrealistic errors of central
tendency
40
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
5 Critical Incidents Method The approach is focused on certain critical behaviors
of employee that makes all the difference in the performance Supervisors as and
when they occur record such incidents
Advantages Evaluations are based on actual job behaviors ratings are supported
by descriptions feedback is easy reduces recency biases chances of subordinate
improvement are high
Disadvantages Negative incidents can be prioritized forgetting incidents overly
close supervision feedback may be too much and may appear to be punishment
6 Behaviorally Anchored Rating Scales Statements of effective and ineffective
behaviors determine the points They are said to be behaviorally anchored The
rater is supposed to say which behavior describes the employee performance
Advantages Helps overcome rating errors
Disadvantages Suffers from distortions inherent in most rating techniques
41
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
7 Field Review Method This is an appraisal done by someone outside employeesrsquo own department usually from corporate or HR department
Advantages Useful for managerial level promotions when comparable
information is needed
Disadvantages Outsider is generally not familiar with employees work
environment Observation of actual behaviors not possible
8 Performance Tests amp Observations This is based on the test of knowledge or skills The tests may be written or an actual presentation of skills Tests must be reliable and validated to be useful
Advantages Tests may be apt to measure potential more than actual performance
Disadvantages Tests may suffer if costs of test development or administration are high
42
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Future Oriented Methods
1 Management by Objectives It means management by objectives and the
performance is rated against the achievement of objectives stated by the
management MBO process
(a) Establish goals and desired outcomes for each subordinate
(b) Setting performance standards
(c) Comparison of actual goals with goals attained by the employee
(d) Establish new goals and new strategies for goals not achieved in previous
year
43
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Future Oriented Methods
2 Psychological Appraisals
These appraisals are more directed to assess employeersquos potential for future performance rather than the past one It is done in the form of in-depth interviews psychological tests and discussion with supervisors and review of other evaluations
It is more focused on employees emotional intellectual and motivational and other personal characteristics affecting his performance This approach is slow and costly and may be useful for bright young members who may have considerable potential However quality of these appraisals largely depend upon the skills of psychologists who perform the evaluation
44
1 Leniency amp Severity
2 Central Tendency
3 Halo Effect
4 Primacy amp Recency Effect
5 Spillover Effects
6 Status Effect
Problems of RatingRating Biases
45
PERFORMANCE COACHING
The performance coaching process involves five strategies
1 Creating a partnership role To make employees realize that both employees and manger are responsible for performance and build trust amongst them
2 Commitment Inspiring employees to be committed to the goals
3 Competency development Awareness towards developing skills and
competencies required to reach to organizational goals
4 Perseverance Developing lsquonever say diersquo attitude among organizational members
5 Shaping the environment Creating conditions for employee development
46
THE COACHING DISCUSSION
Kinlawrsquos Approach
Kinlaw suggests a three-stage approach to the coaching discussion as follows
1048698 Confronting or presenting
1048698 Using reactions to develop information
1048698 Resolving or resolution
47
THE COACHING DISCUSSION
bull Fourniesrsquo Approach
bull Step 1 Get the employeersquos agreement that a problem existsbull Step 2 Mutually discuss alternative solutions to the problembull Step 3 Mutually agree on actions to be taken to solve the problembull Step 4 Follow-up to measure resultsbull Step 5 Recognize any achievement when it occurs
48
MENTORING
bull Mentorship is a process where an experienced person provides help guidance support to nurture and develop a less experienced person referred to as a proteacutegeacute apprentice mentee or (person) It improves the self esteem of mentee and increases hisher chance for success
49
MENTORING - Kinds
1048698 New-hire mentorship
1048698 High-potential mentorship
1048698 Mentorship in Education
50
POTENTIAL APPRAISAL CAREER AND SUCCESSION
PLANNING
51
POTENTIAL APPRAISAL
Purpose of Potential Appraisal
Potential appraisal serves the following purposes
1048698 To advise employees about their overall career development and future prospects
1048698 Help the organisation to chalk out succession plans
1048698 Motivate the employees to further develop their skills and competencies
1048698 To identify the training needs
52
POTENTIAL APPRAISAL
Techniques of Potential Appraisal
1048698 Self-appraisals
1048698 Peer appraisals
1048698 Superior appraisals
1048698 MBO
1048698 Psychological and psychometric tests
1048698 Management games like role playing
1048698 Leadership exercises etc
53
CAREER PLANNING
Steps in Career Planning Process
Step One Self Assessment
Step Two Goal Setting
Step Three AcademicCareer Options
Step Four Plan of Action
Step Five Catch Hold of Opportunities
54
bull Succession Planning refers to the process of developing the second line for taking up a higher role in the organization
SUCCESSION PLANNING
55
HR MEASUREMENT AND AUDIT
bull Audit helps the organization have a clear understanding of the lacunae and better align the HR processes with Business goals
bull The audit itself is a diagnostic tool not a prescriptive instrument It helps in identifying what is missing or needs to improve It is most useful when an organization is ready to act on the findings and to evolve its HR function to play a greater strategic role
56
WHY CONDUCT AN HR AUDIT
1048698 It helps promote more professionalism and professional management
1048698 HR audit helps an organization to be aware of its present practices policies
and their adherence
1048698 Benchmarking to improve HR practices
1048698 The organization can benchmark its processes with best-in-class organizations
1048698 HR audit suggest improvement measures keeping the organizational strategic goals and vision in mind
57
THE HR AUDIT PROCESS
InterviewsQuestionnaires
The audit team interviews the following
1048698 Top Management (CEO Unit Heads)
1048698 Line Managers (eg Managers in production quality purchase and marketing)
1048698 HRD Staff
1048698 Workmen and others
Observation and Recording
Follow-up and Corrections done
58
HUMAN RESOURCE ACCOUNTING
bull The American Accounting Associationrsquos Committee on Human Resource Accounting (1973) has defined Human Resource Accounting as ldquothe process of identifying and measuring data about human resources and communicating this information to interested partiesrdquo
bull It is the measurement and reporting of the cost and value of people in organizational Resources
59
METHODS OF HUMAN RESOURCE ACCOUNTING
Methods of Valuing and Accounting of Human Resources
The methods to value and account for human resources can be classified into the following categories
1 Methods based on costs (which include costs incurred by the company to recruit hire train and develop human resources)
2 Methods based on economic value of human resources and the capitalisation of companyrsquos earnings
60
HUMAN RESOURCE ACCOUNTING
Methods based on Cost
Historical Cost Method
Under this method the cost of acquisition ie selection hiring training costs of employees are capitalised and written off over the expected useful life of the employees In case the personnel leave the company before the anticipated period of service then the unamortised portion of costs remaining in the companyrsquos books is written off against the profit and loss account in that year If the period of service exceeds the anticipated time then amortisation of costs is rescheduled
Replacement Cost Method
Under this method the human resources are valued at their replacement cost ie The monetary implications of replacing existing personnel
Standard Cost Method
Under this method standard costs of recruiting hiring training and developing per grade of employees are determined annually The total standard cost for all personnel of the company is the value of human resources
61
HUMAN RESOURCE ACCOUNTING
bull HR Accounting based on Value
bull Economic Value Method
bull Under this method the net present value of incremental cash flows attributed to human resources is taken as the asset value
62
HUMAN RESOURCE INFORMATION SYSTEMS(HRIS)
bull An information system may be automated or manual and involves collectingprocessing transmitting and disseminating data that represents user information
63
HRIS ndash APPLICATION AND UTILITIES
Personnel administration It will encompass information about each employee
such as name address personal details etc
1048698 Salary administration Generate personnel cost reports conduct lsquowhat if
analysisrsquo provide compensation history
1048698 Leave and absence recording Essentially being able to provide comprehensive
method of tracking absences late coming reports on excess leave availed leave
lapsed
1048698 Skill inventory Recording of acquired skills and monitor the skill database at the
employee and organisational level
1048698 Performance appraisal The system should record individual employee
performance appraisal data such as appraisal ratings due date of appraisal
training needs identified during the appraisal process
1048698 Recruitment Record recruitment cost lead time to fill a vacant position
recruitment methods applicant and resume management
1048698 Career planning HRIS System can provide succession plan reports identifying
employees earmarked for future position
64
HRIS ndash DISADVANTAGES
May be expensive ndash financing the technology
1048698 Thorough understanding of what constitutes quality information for the user
1048698 Computer cannot substitute human beings
HUMAN RESOURCE DEVELOPMENT SYSTEM
66
HRD
HRD play a very crucial role in organization Henery Ford once said ldquotake out my building take out my machines take out all capital but leave my men with me and I will become Henry Ford againrdquo HRD is considered as key to higher productivity better relations and greater profitability for any organization
According to Daftur
ldquoHRD is a system and process concerned with an organized series of learning activities within specified time limits designed to produce behavioral changes in the learner in such a way that it acquires desired level of competence for present or future rolerdquo
67
HRDORGANIZATION ALIGNMENT MODEL
TRAINING AND DEVELOPMENT
69
NEED FOR TRAINING AND DEVELOPMENT
bull Technological advances bull Organizational complexity bull Organizational tenure bull Human relations movement
70
THE TRAINING PROCESS
71
Needs Assessment
72
bull Lecturesbull Audio Visualsbull On-the-job Training (OJT)bull Programmed Instructionbull Computer Assisted Instruction (CAI)bull Simulation
Methods and Techniques of Training
73
Training Methods for Management Development
1048698 Seminars and Conferences
1048698 Case Study
1048698 Role Playing
1048698 Management Games
1048698 Sensitivity Training
74
bull Implementation of the Training Program
bull Evaluation of Training Program
75
Kirkpatrick Model for Evaluating Effectiveness of Training Programs
1 Reactions
2 Learning
3 Behaviors
Results or Return on Investment (ROI)
76
SPECIAL TOPICS IN TRAINING ANDDEVELOPMENT
bull Cross-cultural Training
bull Orientation Training
bull Team-training and Cross-training
bull Diversity Training
COMPENSATION AND REWARDS
78
COMPENSATION OVERVIEW
Compensation is the process of directly and indirectly rewarding employees on a current or deferred basis for their performance of assigned tasks It consists of
1048698 Direct Financial Compensation Wages salaries bonuses commissions
1048698 Indirect Financial Compensation All financial rewards not included in direct compensation (benefits)
1048698 Non-financial Compensation Satisfaction received from the job or from the psychological andor physical environment of the job
JOB EVALUATION TECHNIQUE
The general step-wise procedure for job evaluation is as under
1 Select the group of jobs
2 Study the job (job analysis)
3 Prepare job description ndash approval
4 Device an evaluation plan ndash common characteristicstraits
5 Establish a committee of raters and rateevaluate
6 Group or classify the jobs
7 Convert job grades to money value along with Wage survey
8 Obtain approval from Union and Management
9 Establish a suitable grievance procedure
COMPONENTS OF COMPENSATION SYSTEM
1 Basic WagesSalaries
2 Dearness Allowance
3 Bonus
4 Commissions
5 Mixed Plans
6 Piece Rate Wages
7 Sign on Bonuses
8 Profit Sharing Payments
9 Fringe Benefits
COMPENSATION EQUITY
1048698 External Equity Employees are paid comparably to those who perform similar jobs in other industries
1048698 Internal Equity Employees are paid according to relative value of their jobs within an organisation
1048698 Employee Equity Individuals performing similar jobs for the same firm are rewarded according to factors unique to the employee such as performance level or seniority
1048698 Team Equity More productive teams receive greater rewards than less productive groups
INTERNATIONAL COMPENSATION
Elements of Expatriate Compensation
Basic Pay Amount of money that an expatriate receives from home country Used for
Bonus calculation
Benefits
1048698 One third of compensation
1048698 Extra vacation special leaves air fares for their families for an annual visit home
emergency leaves
1048698 Housing
1048698 Utilities ndash air conditioner bottled water electricity telephone call expenses
1048698 Car ndash car expenses chauffeur hired vehicle
Helping hands servants gardeners security
1048698 Club subscription
1048698 Educational benefits
Allowances
1048698 COLA ndash cost of living between home country and foreign country inflation
1048698 Relocation allowances
1048698 Hardship allowances
1048698 Separation allowances
1048698 Clothing allowances ndash very cold climates
1048698 Home leave allowances
1048698 Spouse assistance allowances
REWARDS SYSTEM
Reward System as Followed by Organisations
1 Incentive and Rewards
2 Competency Related Pay
3 Skill Based Pay
4 Team Based Rewards
5 Profit Sharing
7 Employee Ownership
8 Statutory and Voluntary Benefits
FORMS OF RECOGNITION
Examples of Formal Recognition
1 Milestone Service Anniversary Awards (5101520 25 years of service)
2 Ideas Improvement amp Performance Awards
3 Service Awards
a) Teamworkleadership
b) Customer Service
c) Citizenship
d) Innovation
e) Attendance
4 Awards would include
a) PlaquesDesk trophies
b) Certificates
c) GiftsCertificates
d) Picture in the webpage
FORMS OF RECOGNITION
Examples of Informal Recognition
1 Team Building Retreats
2 Acknowledgement of DeptDivision goals achieved
3 Project Completion meals
4 Birthday cakes and cards
5 Picnics
6 Staff Appreciation Day
7 Holiday Parties
8 Dress-up Days
9 Corporate Merchandise
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-
9
TYPES OF INFORMATION FOR JOB ANALYSIS
bull Work activities Information on the activities requires to complete the work such as cleaning selling and recruiting
bull Human behaviours The specialist collects information about human behaviours like sensing communicating deciding and writing
bull Machines tools equipment and work aids This category includes information regarding tools used materials processed and services rendered
bull Performance standards The information on the job performance standards in terms of quantity and quality of minimum standards acceptable
bull Job context Included here is information about job conditions work schedule and organizational and social context
bull Human requirements This includes information regarding the jobrsquos human requirements such as knowledge or skills (education training experience)
10
METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
bull Personal Observation (average conditions specific job needs not job behaviors ndash preferred for manual jobs not mental aspects)
bull Critical Incidents (behaviorally focused descriptions ndash lengthy ndash dissimilar behaviors)
bull Interview (lengthy distort information)bull Questionnaire Method (economical motivating employees
to complete the questionnaire)
11
Statement of human qualification necessary to do the job includes
1048698 Education
1048698 Experience
1048698 Training
1048698 Communication skills
1048698 Emotional characteristics
1048698 Physical effort
JOB SPECIFICATION
12
USE OF JOB ANALYSIS
bull Human resource planningbull Recruitmentbull Selectionbull Training bull Counseling bull Employee safety bull Performance appraisal bull Job evaluation
13
bull It integrates the work context (tasks functions and relationships) the rewards (extrinsic and intrinsic) and the qualifications required (skills knowledge abilities) for each job in a way that meets the needs of employees and the organizations
bull Job Enlargement bull Job Enrichment bull Job Rotation
JOB DESIGN
14
Job Characteristics
Skill Variety The extent to which the work requires several different activities for successful completion
Task Identity
The extent to which the job includes a ldquowholerdquo identifiable unit of work that is carried out from start to finish and that results in a visible outcome
Task Significance The impact the job has on other people
Autonomy The extent of individual freedom and discretion in the work and its scheduling
Feedback The amount of information received about how well or how poorly one has performed
15
HUMAN RESOURCE PLANNING
16
OBJECTIVES OF HRP
1 to prevent overstaffing and understaffing
2 to ensure employee availability
3 to ensure that the organization is responsive to the environment
4 to provide direction to all HR activities and
5 to build line and staff partnership
17
bull Environmental scanning
bull Forecasting and analyzing demand for human resources
bull Forecasting and analyzing supply of human resources
bull Developing action plans to match human resource demand and supplyndash HR Supply = HR demandndash HR Supply lt HR demand (deficitshortage)ndash HR Supply gt HR demand (surplus)
PROCESS OF HRP
18
bull Qualitative Methods
ndash Estimation (Centralized ndash HR Decentralized ndash Line Mgrs
ndash Expert Opinions
(a) Delphi techniques
(b) Group brainstorming
(c) Nominal group technique
(d) Averaging
ndash Sales force estimate
TECHNIQUES OF HR DEMAND FORECASTING
19
bull Quantitative Methods
bull Trend analysis and projection
bull Simulation models (probabilities of future events to estimate future employment levels)
bull Workload analysis (Both the number of employees and the kind of employees required to achieve organizational goals are identified)
bull Markov analysis
TECHNIQUES OF HR DEMAND FORECASTING
20
ATTRACTING THE TALENT RECRUITMENT
SELECTION AND OUTSOURCING
21
Internal Sources of Recruitment
1 Transfers
2 Promotions
3 Upgrading and demotion
4 Retired and retrenched employees
5 Deceased employees and disabled employees
SOURCES OF RECRUITMENT
22
External Sources of Recruitment
bull Press advertisements bull Educational institutesbull Placement agencies bull Employment exchanges bull Labour contractorsbull Unsolicited applicants bull Employee referralsrecommendations
SOURCES OF RECRUITMENT
23
THE SELECTION PROCESS
1 Pre screening
2 Initial interview
3 Reference and other checks
4 Application forms or lsquoblanksrsquo
5 Selection testing
6 Comprehensive interview
7 Job offer
8 Medical examination
24
Interviews
I Unstructured Interview
II Situational Interview
III Behavior Description Interviews
IV Comprehensive Structured Interviews
V Structured Behavioral Interview
25
PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
1048698 Unclear role of interviewer
1048698 Unprepared interviewer
1048698 Halo effect
1048698 Snap judgement
1048698 Personal biases
1048698 Ineffective communication
1048698 Contrast effect
1048698 Reflection effect
1048698 Satisfying onersquos own needs
26
bull INDUCTION
bull OUTSOURCING
27
COMPETENCY MAPPING AND ASSESSMENT CENTRES
28
Competencies
competencies are typically defined as a combination of knowledge skills abilities and other individual characteristics that can be reliably measured and that can be shown to differentiate performance
29
VARIOUS COMPETENCY MODELS
1048698Job Competencies Assessment Model interviews and
observations of outstanding and average performers
1048698Modified Job Competence Assessment Model a written account
of critical incidents (to reduce costs)
1048698Generic Model Overlay Method off-the-shelf
1048698Customized Generic Model Method tentative list of
competencies that are identified internally
1048698Flexible Job Competency Model Method under different conditions in the future
1048698Systems Method behaviors that may be important in the
future
30
HISTORY OF ASSESSMENT CENTRES
bull 1942
bull exceptional smartness
bull War Office Selection Boards
31
MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
Types of Psychological Tests
1048698 IQAchievement tests
1048698 Situational tests Situations are given and an individualrsquos behaviorresponse is observed
1048698 Psychometric tests
1048698 Personality Questionnaire
1048698 Interest Questionnaire
1048698 Values Questionnaire
32
MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
bull The Leaderless Group Discussion (LGD)bull In-basket Exercisebull Group Exercisesbull Behavioral Event Interviews
33
Difference between Assessment Centre and Development Center
34
PERFORMANCE PLANNING AND REVIEW
35
GOALS OF PERFORMANCE APPRAISAL
1048698 Each objective should be SMART ndash specific measurable agreed realistic and time-limited
1048698 Each objective must be in an area over which the employee has control
1048698 Give each objective a deadline
1048698 A clear target allows you to measure whether the employee is making the progress you expect
1048698 Provide information to assist in the HR decisions like promotions transfers etc
36
PROCESS OF PERFORMANCE APPRAISAL
bull Establishing Performance Standards
bull Communicating the Standards
37
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
bull Broadly all methods of appraisals can be divided into two different categories
bull 1048698 Past Oriented Methodsbull 1048698 Future Oriented Methods
38
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Past Oriented Methods
1 Rating Scales Rating scales consists of several numerical scales representing job related performance criterions such as dependability initiative output attendance attitude etc Each scales ranges from excellent to poor The total numerical scores are computed and final conclusions are derived
Advantages Adaptability easy to use low cost every type of job can be
evaluated large number of employees covered no formal training required
Disadvantages Raterrsquos biases
2 Checklist Under this method checklist of statements of traits of employee in the
form of Yes or No based questions is prepared Here the rater only does the
reporting or checking and HR department does the actual evaluation
Advantages Economy ease of administration limited training required
standardization
Disadvantages Raters biases use of improper weighs by HR does not allow rater
to give relative ratings
39
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
3 Forced Choice Method The series of statements arranged in the blocks of two or more are given and the rater indicates which statement is true or false The rater is forced to make a choice HR department does actual assessment
Advantages Absence of personal biases because of forced choice
Disadvantages Statements may be wrongly framed
4 Forced Distribution Method Here employees are clustered around a high point on a rating scale Rater is compelled to distribute the employees on all points on the scale It is assumed that the performance is conformed to normal distribution
Advantages Eliminates biasness
Disadvantages Assumption of normal distribution unrealistic errors of central
tendency
40
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
5 Critical Incidents Method The approach is focused on certain critical behaviors
of employee that makes all the difference in the performance Supervisors as and
when they occur record such incidents
Advantages Evaluations are based on actual job behaviors ratings are supported
by descriptions feedback is easy reduces recency biases chances of subordinate
improvement are high
Disadvantages Negative incidents can be prioritized forgetting incidents overly
close supervision feedback may be too much and may appear to be punishment
6 Behaviorally Anchored Rating Scales Statements of effective and ineffective
behaviors determine the points They are said to be behaviorally anchored The
rater is supposed to say which behavior describes the employee performance
Advantages Helps overcome rating errors
Disadvantages Suffers from distortions inherent in most rating techniques
41
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
7 Field Review Method This is an appraisal done by someone outside employeesrsquo own department usually from corporate or HR department
Advantages Useful for managerial level promotions when comparable
information is needed
Disadvantages Outsider is generally not familiar with employees work
environment Observation of actual behaviors not possible
8 Performance Tests amp Observations This is based on the test of knowledge or skills The tests may be written or an actual presentation of skills Tests must be reliable and validated to be useful
Advantages Tests may be apt to measure potential more than actual performance
Disadvantages Tests may suffer if costs of test development or administration are high
42
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Future Oriented Methods
1 Management by Objectives It means management by objectives and the
performance is rated against the achievement of objectives stated by the
management MBO process
(a) Establish goals and desired outcomes for each subordinate
(b) Setting performance standards
(c) Comparison of actual goals with goals attained by the employee
(d) Establish new goals and new strategies for goals not achieved in previous
year
43
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Future Oriented Methods
2 Psychological Appraisals
These appraisals are more directed to assess employeersquos potential for future performance rather than the past one It is done in the form of in-depth interviews psychological tests and discussion with supervisors and review of other evaluations
It is more focused on employees emotional intellectual and motivational and other personal characteristics affecting his performance This approach is slow and costly and may be useful for bright young members who may have considerable potential However quality of these appraisals largely depend upon the skills of psychologists who perform the evaluation
44
1 Leniency amp Severity
2 Central Tendency
3 Halo Effect
4 Primacy amp Recency Effect
5 Spillover Effects
6 Status Effect
Problems of RatingRating Biases
45
PERFORMANCE COACHING
The performance coaching process involves five strategies
1 Creating a partnership role To make employees realize that both employees and manger are responsible for performance and build trust amongst them
2 Commitment Inspiring employees to be committed to the goals
3 Competency development Awareness towards developing skills and
competencies required to reach to organizational goals
4 Perseverance Developing lsquonever say diersquo attitude among organizational members
5 Shaping the environment Creating conditions for employee development
46
THE COACHING DISCUSSION
Kinlawrsquos Approach
Kinlaw suggests a three-stage approach to the coaching discussion as follows
1048698 Confronting or presenting
1048698 Using reactions to develop information
1048698 Resolving or resolution
47
THE COACHING DISCUSSION
bull Fourniesrsquo Approach
bull Step 1 Get the employeersquos agreement that a problem existsbull Step 2 Mutually discuss alternative solutions to the problembull Step 3 Mutually agree on actions to be taken to solve the problembull Step 4 Follow-up to measure resultsbull Step 5 Recognize any achievement when it occurs
48
MENTORING
bull Mentorship is a process where an experienced person provides help guidance support to nurture and develop a less experienced person referred to as a proteacutegeacute apprentice mentee or (person) It improves the self esteem of mentee and increases hisher chance for success
49
MENTORING - Kinds
1048698 New-hire mentorship
1048698 High-potential mentorship
1048698 Mentorship in Education
50
POTENTIAL APPRAISAL CAREER AND SUCCESSION
PLANNING
51
POTENTIAL APPRAISAL
Purpose of Potential Appraisal
Potential appraisal serves the following purposes
1048698 To advise employees about their overall career development and future prospects
1048698 Help the organisation to chalk out succession plans
1048698 Motivate the employees to further develop their skills and competencies
1048698 To identify the training needs
52
POTENTIAL APPRAISAL
Techniques of Potential Appraisal
1048698 Self-appraisals
1048698 Peer appraisals
1048698 Superior appraisals
1048698 MBO
1048698 Psychological and psychometric tests
1048698 Management games like role playing
1048698 Leadership exercises etc
53
CAREER PLANNING
Steps in Career Planning Process
Step One Self Assessment
Step Two Goal Setting
Step Three AcademicCareer Options
Step Four Plan of Action
Step Five Catch Hold of Opportunities
54
bull Succession Planning refers to the process of developing the second line for taking up a higher role in the organization
SUCCESSION PLANNING
55
HR MEASUREMENT AND AUDIT
bull Audit helps the organization have a clear understanding of the lacunae and better align the HR processes with Business goals
bull The audit itself is a diagnostic tool not a prescriptive instrument It helps in identifying what is missing or needs to improve It is most useful when an organization is ready to act on the findings and to evolve its HR function to play a greater strategic role
56
WHY CONDUCT AN HR AUDIT
1048698 It helps promote more professionalism and professional management
1048698 HR audit helps an organization to be aware of its present practices policies
and their adherence
1048698 Benchmarking to improve HR practices
1048698 The organization can benchmark its processes with best-in-class organizations
1048698 HR audit suggest improvement measures keeping the organizational strategic goals and vision in mind
57
THE HR AUDIT PROCESS
InterviewsQuestionnaires
The audit team interviews the following
1048698 Top Management (CEO Unit Heads)
1048698 Line Managers (eg Managers in production quality purchase and marketing)
1048698 HRD Staff
1048698 Workmen and others
Observation and Recording
Follow-up and Corrections done
58
HUMAN RESOURCE ACCOUNTING
bull The American Accounting Associationrsquos Committee on Human Resource Accounting (1973) has defined Human Resource Accounting as ldquothe process of identifying and measuring data about human resources and communicating this information to interested partiesrdquo
bull It is the measurement and reporting of the cost and value of people in organizational Resources
59
METHODS OF HUMAN RESOURCE ACCOUNTING
Methods of Valuing and Accounting of Human Resources
The methods to value and account for human resources can be classified into the following categories
1 Methods based on costs (which include costs incurred by the company to recruit hire train and develop human resources)
2 Methods based on economic value of human resources and the capitalisation of companyrsquos earnings
60
HUMAN RESOURCE ACCOUNTING
Methods based on Cost
Historical Cost Method
Under this method the cost of acquisition ie selection hiring training costs of employees are capitalised and written off over the expected useful life of the employees In case the personnel leave the company before the anticipated period of service then the unamortised portion of costs remaining in the companyrsquos books is written off against the profit and loss account in that year If the period of service exceeds the anticipated time then amortisation of costs is rescheduled
Replacement Cost Method
Under this method the human resources are valued at their replacement cost ie The monetary implications of replacing existing personnel
Standard Cost Method
Under this method standard costs of recruiting hiring training and developing per grade of employees are determined annually The total standard cost for all personnel of the company is the value of human resources
61
HUMAN RESOURCE ACCOUNTING
bull HR Accounting based on Value
bull Economic Value Method
bull Under this method the net present value of incremental cash flows attributed to human resources is taken as the asset value
62
HUMAN RESOURCE INFORMATION SYSTEMS(HRIS)
bull An information system may be automated or manual and involves collectingprocessing transmitting and disseminating data that represents user information
63
HRIS ndash APPLICATION AND UTILITIES
Personnel administration It will encompass information about each employee
such as name address personal details etc
1048698 Salary administration Generate personnel cost reports conduct lsquowhat if
analysisrsquo provide compensation history
1048698 Leave and absence recording Essentially being able to provide comprehensive
method of tracking absences late coming reports on excess leave availed leave
lapsed
1048698 Skill inventory Recording of acquired skills and monitor the skill database at the
employee and organisational level
1048698 Performance appraisal The system should record individual employee
performance appraisal data such as appraisal ratings due date of appraisal
training needs identified during the appraisal process
1048698 Recruitment Record recruitment cost lead time to fill a vacant position
recruitment methods applicant and resume management
1048698 Career planning HRIS System can provide succession plan reports identifying
employees earmarked for future position
64
HRIS ndash DISADVANTAGES
May be expensive ndash financing the technology
1048698 Thorough understanding of what constitutes quality information for the user
1048698 Computer cannot substitute human beings
HUMAN RESOURCE DEVELOPMENT SYSTEM
66
HRD
HRD play a very crucial role in organization Henery Ford once said ldquotake out my building take out my machines take out all capital but leave my men with me and I will become Henry Ford againrdquo HRD is considered as key to higher productivity better relations and greater profitability for any organization
According to Daftur
ldquoHRD is a system and process concerned with an organized series of learning activities within specified time limits designed to produce behavioral changes in the learner in such a way that it acquires desired level of competence for present or future rolerdquo
67
HRDORGANIZATION ALIGNMENT MODEL
TRAINING AND DEVELOPMENT
69
NEED FOR TRAINING AND DEVELOPMENT
bull Technological advances bull Organizational complexity bull Organizational tenure bull Human relations movement
70
THE TRAINING PROCESS
71
Needs Assessment
72
bull Lecturesbull Audio Visualsbull On-the-job Training (OJT)bull Programmed Instructionbull Computer Assisted Instruction (CAI)bull Simulation
Methods and Techniques of Training
73
Training Methods for Management Development
1048698 Seminars and Conferences
1048698 Case Study
1048698 Role Playing
1048698 Management Games
1048698 Sensitivity Training
74
bull Implementation of the Training Program
bull Evaluation of Training Program
75
Kirkpatrick Model for Evaluating Effectiveness of Training Programs
1 Reactions
2 Learning
3 Behaviors
Results or Return on Investment (ROI)
76
SPECIAL TOPICS IN TRAINING ANDDEVELOPMENT
bull Cross-cultural Training
bull Orientation Training
bull Team-training and Cross-training
bull Diversity Training
COMPENSATION AND REWARDS
78
COMPENSATION OVERVIEW
Compensation is the process of directly and indirectly rewarding employees on a current or deferred basis for their performance of assigned tasks It consists of
1048698 Direct Financial Compensation Wages salaries bonuses commissions
1048698 Indirect Financial Compensation All financial rewards not included in direct compensation (benefits)
1048698 Non-financial Compensation Satisfaction received from the job or from the psychological andor physical environment of the job
JOB EVALUATION TECHNIQUE
The general step-wise procedure for job evaluation is as under
1 Select the group of jobs
2 Study the job (job analysis)
3 Prepare job description ndash approval
4 Device an evaluation plan ndash common characteristicstraits
5 Establish a committee of raters and rateevaluate
6 Group or classify the jobs
7 Convert job grades to money value along with Wage survey
8 Obtain approval from Union and Management
9 Establish a suitable grievance procedure
COMPONENTS OF COMPENSATION SYSTEM
1 Basic WagesSalaries
2 Dearness Allowance
3 Bonus
4 Commissions
5 Mixed Plans
6 Piece Rate Wages
7 Sign on Bonuses
8 Profit Sharing Payments
9 Fringe Benefits
COMPENSATION EQUITY
1048698 External Equity Employees are paid comparably to those who perform similar jobs in other industries
1048698 Internal Equity Employees are paid according to relative value of their jobs within an organisation
1048698 Employee Equity Individuals performing similar jobs for the same firm are rewarded according to factors unique to the employee such as performance level or seniority
1048698 Team Equity More productive teams receive greater rewards than less productive groups
INTERNATIONAL COMPENSATION
Elements of Expatriate Compensation
Basic Pay Amount of money that an expatriate receives from home country Used for
Bonus calculation
Benefits
1048698 One third of compensation
1048698 Extra vacation special leaves air fares for their families for an annual visit home
emergency leaves
1048698 Housing
1048698 Utilities ndash air conditioner bottled water electricity telephone call expenses
1048698 Car ndash car expenses chauffeur hired vehicle
Helping hands servants gardeners security
1048698 Club subscription
1048698 Educational benefits
Allowances
1048698 COLA ndash cost of living between home country and foreign country inflation
1048698 Relocation allowances
1048698 Hardship allowances
1048698 Separation allowances
1048698 Clothing allowances ndash very cold climates
1048698 Home leave allowances
1048698 Spouse assistance allowances
REWARDS SYSTEM
Reward System as Followed by Organisations
1 Incentive and Rewards
2 Competency Related Pay
3 Skill Based Pay
4 Team Based Rewards
5 Profit Sharing
7 Employee Ownership
8 Statutory and Voluntary Benefits
FORMS OF RECOGNITION
Examples of Formal Recognition
1 Milestone Service Anniversary Awards (5101520 25 years of service)
2 Ideas Improvement amp Performance Awards
3 Service Awards
a) Teamworkleadership
b) Customer Service
c) Citizenship
d) Innovation
e) Attendance
4 Awards would include
a) PlaquesDesk trophies
b) Certificates
c) GiftsCertificates
d) Picture in the webpage
FORMS OF RECOGNITION
Examples of Informal Recognition
1 Team Building Retreats
2 Acknowledgement of DeptDivision goals achieved
3 Project Completion meals
4 Birthday cakes and cards
5 Picnics
6 Staff Appreciation Day
7 Holiday Parties
8 Dress-up Days
9 Corporate Merchandise
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-
10
METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
bull Personal Observation (average conditions specific job needs not job behaviors ndash preferred for manual jobs not mental aspects)
bull Critical Incidents (behaviorally focused descriptions ndash lengthy ndash dissimilar behaviors)
bull Interview (lengthy distort information)bull Questionnaire Method (economical motivating employees
to complete the questionnaire)
11
Statement of human qualification necessary to do the job includes
1048698 Education
1048698 Experience
1048698 Training
1048698 Communication skills
1048698 Emotional characteristics
1048698 Physical effort
JOB SPECIFICATION
12
USE OF JOB ANALYSIS
bull Human resource planningbull Recruitmentbull Selectionbull Training bull Counseling bull Employee safety bull Performance appraisal bull Job evaluation
13
bull It integrates the work context (tasks functions and relationships) the rewards (extrinsic and intrinsic) and the qualifications required (skills knowledge abilities) for each job in a way that meets the needs of employees and the organizations
bull Job Enlargement bull Job Enrichment bull Job Rotation
JOB DESIGN
14
Job Characteristics
Skill Variety The extent to which the work requires several different activities for successful completion
Task Identity
The extent to which the job includes a ldquowholerdquo identifiable unit of work that is carried out from start to finish and that results in a visible outcome
Task Significance The impact the job has on other people
Autonomy The extent of individual freedom and discretion in the work and its scheduling
Feedback The amount of information received about how well or how poorly one has performed
15
HUMAN RESOURCE PLANNING
16
OBJECTIVES OF HRP
1 to prevent overstaffing and understaffing
2 to ensure employee availability
3 to ensure that the organization is responsive to the environment
4 to provide direction to all HR activities and
5 to build line and staff partnership
17
bull Environmental scanning
bull Forecasting and analyzing demand for human resources
bull Forecasting and analyzing supply of human resources
bull Developing action plans to match human resource demand and supplyndash HR Supply = HR demandndash HR Supply lt HR demand (deficitshortage)ndash HR Supply gt HR demand (surplus)
PROCESS OF HRP
18
bull Qualitative Methods
ndash Estimation (Centralized ndash HR Decentralized ndash Line Mgrs
ndash Expert Opinions
(a) Delphi techniques
(b) Group brainstorming
(c) Nominal group technique
(d) Averaging
ndash Sales force estimate
TECHNIQUES OF HR DEMAND FORECASTING
19
bull Quantitative Methods
bull Trend analysis and projection
bull Simulation models (probabilities of future events to estimate future employment levels)
bull Workload analysis (Both the number of employees and the kind of employees required to achieve organizational goals are identified)
bull Markov analysis
TECHNIQUES OF HR DEMAND FORECASTING
20
ATTRACTING THE TALENT RECRUITMENT
SELECTION AND OUTSOURCING
21
Internal Sources of Recruitment
1 Transfers
2 Promotions
3 Upgrading and demotion
4 Retired and retrenched employees
5 Deceased employees and disabled employees
SOURCES OF RECRUITMENT
22
External Sources of Recruitment
bull Press advertisements bull Educational institutesbull Placement agencies bull Employment exchanges bull Labour contractorsbull Unsolicited applicants bull Employee referralsrecommendations
SOURCES OF RECRUITMENT
23
THE SELECTION PROCESS
1 Pre screening
2 Initial interview
3 Reference and other checks
4 Application forms or lsquoblanksrsquo
5 Selection testing
6 Comprehensive interview
7 Job offer
8 Medical examination
24
Interviews
I Unstructured Interview
II Situational Interview
III Behavior Description Interviews
IV Comprehensive Structured Interviews
V Structured Behavioral Interview
25
PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
1048698 Unclear role of interviewer
1048698 Unprepared interviewer
1048698 Halo effect
1048698 Snap judgement
1048698 Personal biases
1048698 Ineffective communication
1048698 Contrast effect
1048698 Reflection effect
1048698 Satisfying onersquos own needs
26
bull INDUCTION
bull OUTSOURCING
27
COMPETENCY MAPPING AND ASSESSMENT CENTRES
28
Competencies
competencies are typically defined as a combination of knowledge skills abilities and other individual characteristics that can be reliably measured and that can be shown to differentiate performance
29
VARIOUS COMPETENCY MODELS
1048698Job Competencies Assessment Model interviews and
observations of outstanding and average performers
1048698Modified Job Competence Assessment Model a written account
of critical incidents (to reduce costs)
1048698Generic Model Overlay Method off-the-shelf
1048698Customized Generic Model Method tentative list of
competencies that are identified internally
1048698Flexible Job Competency Model Method under different conditions in the future
1048698Systems Method behaviors that may be important in the
future
30
HISTORY OF ASSESSMENT CENTRES
bull 1942
bull exceptional smartness
bull War Office Selection Boards
31
MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
Types of Psychological Tests
1048698 IQAchievement tests
1048698 Situational tests Situations are given and an individualrsquos behaviorresponse is observed
1048698 Psychometric tests
1048698 Personality Questionnaire
1048698 Interest Questionnaire
1048698 Values Questionnaire
32
MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
bull The Leaderless Group Discussion (LGD)bull In-basket Exercisebull Group Exercisesbull Behavioral Event Interviews
33
Difference between Assessment Centre and Development Center
34
PERFORMANCE PLANNING AND REVIEW
35
GOALS OF PERFORMANCE APPRAISAL
1048698 Each objective should be SMART ndash specific measurable agreed realistic and time-limited
1048698 Each objective must be in an area over which the employee has control
1048698 Give each objective a deadline
1048698 A clear target allows you to measure whether the employee is making the progress you expect
1048698 Provide information to assist in the HR decisions like promotions transfers etc
36
PROCESS OF PERFORMANCE APPRAISAL
bull Establishing Performance Standards
bull Communicating the Standards
37
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
bull Broadly all methods of appraisals can be divided into two different categories
bull 1048698 Past Oriented Methodsbull 1048698 Future Oriented Methods
38
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Past Oriented Methods
1 Rating Scales Rating scales consists of several numerical scales representing job related performance criterions such as dependability initiative output attendance attitude etc Each scales ranges from excellent to poor The total numerical scores are computed and final conclusions are derived
Advantages Adaptability easy to use low cost every type of job can be
evaluated large number of employees covered no formal training required
Disadvantages Raterrsquos biases
2 Checklist Under this method checklist of statements of traits of employee in the
form of Yes or No based questions is prepared Here the rater only does the
reporting or checking and HR department does the actual evaluation
Advantages Economy ease of administration limited training required
standardization
Disadvantages Raters biases use of improper weighs by HR does not allow rater
to give relative ratings
39
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
3 Forced Choice Method The series of statements arranged in the blocks of two or more are given and the rater indicates which statement is true or false The rater is forced to make a choice HR department does actual assessment
Advantages Absence of personal biases because of forced choice
Disadvantages Statements may be wrongly framed
4 Forced Distribution Method Here employees are clustered around a high point on a rating scale Rater is compelled to distribute the employees on all points on the scale It is assumed that the performance is conformed to normal distribution
Advantages Eliminates biasness
Disadvantages Assumption of normal distribution unrealistic errors of central
tendency
40
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
5 Critical Incidents Method The approach is focused on certain critical behaviors
of employee that makes all the difference in the performance Supervisors as and
when they occur record such incidents
Advantages Evaluations are based on actual job behaviors ratings are supported
by descriptions feedback is easy reduces recency biases chances of subordinate
improvement are high
Disadvantages Negative incidents can be prioritized forgetting incidents overly
close supervision feedback may be too much and may appear to be punishment
6 Behaviorally Anchored Rating Scales Statements of effective and ineffective
behaviors determine the points They are said to be behaviorally anchored The
rater is supposed to say which behavior describes the employee performance
Advantages Helps overcome rating errors
Disadvantages Suffers from distortions inherent in most rating techniques
41
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
7 Field Review Method This is an appraisal done by someone outside employeesrsquo own department usually from corporate or HR department
Advantages Useful for managerial level promotions when comparable
information is needed
Disadvantages Outsider is generally not familiar with employees work
environment Observation of actual behaviors not possible
8 Performance Tests amp Observations This is based on the test of knowledge or skills The tests may be written or an actual presentation of skills Tests must be reliable and validated to be useful
Advantages Tests may be apt to measure potential more than actual performance
Disadvantages Tests may suffer if costs of test development or administration are high
42
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Future Oriented Methods
1 Management by Objectives It means management by objectives and the
performance is rated against the achievement of objectives stated by the
management MBO process
(a) Establish goals and desired outcomes for each subordinate
(b) Setting performance standards
(c) Comparison of actual goals with goals attained by the employee
(d) Establish new goals and new strategies for goals not achieved in previous
year
43
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Future Oriented Methods
2 Psychological Appraisals
These appraisals are more directed to assess employeersquos potential for future performance rather than the past one It is done in the form of in-depth interviews psychological tests and discussion with supervisors and review of other evaluations
It is more focused on employees emotional intellectual and motivational and other personal characteristics affecting his performance This approach is slow and costly and may be useful for bright young members who may have considerable potential However quality of these appraisals largely depend upon the skills of psychologists who perform the evaluation
44
1 Leniency amp Severity
2 Central Tendency
3 Halo Effect
4 Primacy amp Recency Effect
5 Spillover Effects
6 Status Effect
Problems of RatingRating Biases
45
PERFORMANCE COACHING
The performance coaching process involves five strategies
1 Creating a partnership role To make employees realize that both employees and manger are responsible for performance and build trust amongst them
2 Commitment Inspiring employees to be committed to the goals
3 Competency development Awareness towards developing skills and
competencies required to reach to organizational goals
4 Perseverance Developing lsquonever say diersquo attitude among organizational members
5 Shaping the environment Creating conditions for employee development
46
THE COACHING DISCUSSION
Kinlawrsquos Approach
Kinlaw suggests a three-stage approach to the coaching discussion as follows
1048698 Confronting or presenting
1048698 Using reactions to develop information
1048698 Resolving or resolution
47
THE COACHING DISCUSSION
bull Fourniesrsquo Approach
bull Step 1 Get the employeersquos agreement that a problem existsbull Step 2 Mutually discuss alternative solutions to the problembull Step 3 Mutually agree on actions to be taken to solve the problembull Step 4 Follow-up to measure resultsbull Step 5 Recognize any achievement when it occurs
48
MENTORING
bull Mentorship is a process where an experienced person provides help guidance support to nurture and develop a less experienced person referred to as a proteacutegeacute apprentice mentee or (person) It improves the self esteem of mentee and increases hisher chance for success
49
MENTORING - Kinds
1048698 New-hire mentorship
1048698 High-potential mentorship
1048698 Mentorship in Education
50
POTENTIAL APPRAISAL CAREER AND SUCCESSION
PLANNING
51
POTENTIAL APPRAISAL
Purpose of Potential Appraisal
Potential appraisal serves the following purposes
1048698 To advise employees about their overall career development and future prospects
1048698 Help the organisation to chalk out succession plans
1048698 Motivate the employees to further develop their skills and competencies
1048698 To identify the training needs
52
POTENTIAL APPRAISAL
Techniques of Potential Appraisal
1048698 Self-appraisals
1048698 Peer appraisals
1048698 Superior appraisals
1048698 MBO
1048698 Psychological and psychometric tests
1048698 Management games like role playing
1048698 Leadership exercises etc
53
CAREER PLANNING
Steps in Career Planning Process
Step One Self Assessment
Step Two Goal Setting
Step Three AcademicCareer Options
Step Four Plan of Action
Step Five Catch Hold of Opportunities
54
bull Succession Planning refers to the process of developing the second line for taking up a higher role in the organization
SUCCESSION PLANNING
55
HR MEASUREMENT AND AUDIT
bull Audit helps the organization have a clear understanding of the lacunae and better align the HR processes with Business goals
bull The audit itself is a diagnostic tool not a prescriptive instrument It helps in identifying what is missing or needs to improve It is most useful when an organization is ready to act on the findings and to evolve its HR function to play a greater strategic role
56
WHY CONDUCT AN HR AUDIT
1048698 It helps promote more professionalism and professional management
1048698 HR audit helps an organization to be aware of its present practices policies
and their adherence
1048698 Benchmarking to improve HR practices
1048698 The organization can benchmark its processes with best-in-class organizations
1048698 HR audit suggest improvement measures keeping the organizational strategic goals and vision in mind
57
THE HR AUDIT PROCESS
InterviewsQuestionnaires
The audit team interviews the following
1048698 Top Management (CEO Unit Heads)
1048698 Line Managers (eg Managers in production quality purchase and marketing)
1048698 HRD Staff
1048698 Workmen and others
Observation and Recording
Follow-up and Corrections done
58
HUMAN RESOURCE ACCOUNTING
bull The American Accounting Associationrsquos Committee on Human Resource Accounting (1973) has defined Human Resource Accounting as ldquothe process of identifying and measuring data about human resources and communicating this information to interested partiesrdquo
bull It is the measurement and reporting of the cost and value of people in organizational Resources
59
METHODS OF HUMAN RESOURCE ACCOUNTING
Methods of Valuing and Accounting of Human Resources
The methods to value and account for human resources can be classified into the following categories
1 Methods based on costs (which include costs incurred by the company to recruit hire train and develop human resources)
2 Methods based on economic value of human resources and the capitalisation of companyrsquos earnings
60
HUMAN RESOURCE ACCOUNTING
Methods based on Cost
Historical Cost Method
Under this method the cost of acquisition ie selection hiring training costs of employees are capitalised and written off over the expected useful life of the employees In case the personnel leave the company before the anticipated period of service then the unamortised portion of costs remaining in the companyrsquos books is written off against the profit and loss account in that year If the period of service exceeds the anticipated time then amortisation of costs is rescheduled
Replacement Cost Method
Under this method the human resources are valued at their replacement cost ie The monetary implications of replacing existing personnel
Standard Cost Method
Under this method standard costs of recruiting hiring training and developing per grade of employees are determined annually The total standard cost for all personnel of the company is the value of human resources
61
HUMAN RESOURCE ACCOUNTING
bull HR Accounting based on Value
bull Economic Value Method
bull Under this method the net present value of incremental cash flows attributed to human resources is taken as the asset value
62
HUMAN RESOURCE INFORMATION SYSTEMS(HRIS)
bull An information system may be automated or manual and involves collectingprocessing transmitting and disseminating data that represents user information
63
HRIS ndash APPLICATION AND UTILITIES
Personnel administration It will encompass information about each employee
such as name address personal details etc
1048698 Salary administration Generate personnel cost reports conduct lsquowhat if
analysisrsquo provide compensation history
1048698 Leave and absence recording Essentially being able to provide comprehensive
method of tracking absences late coming reports on excess leave availed leave
lapsed
1048698 Skill inventory Recording of acquired skills and monitor the skill database at the
employee and organisational level
1048698 Performance appraisal The system should record individual employee
performance appraisal data such as appraisal ratings due date of appraisal
training needs identified during the appraisal process
1048698 Recruitment Record recruitment cost lead time to fill a vacant position
recruitment methods applicant and resume management
1048698 Career planning HRIS System can provide succession plan reports identifying
employees earmarked for future position
64
HRIS ndash DISADVANTAGES
May be expensive ndash financing the technology
1048698 Thorough understanding of what constitutes quality information for the user
1048698 Computer cannot substitute human beings
HUMAN RESOURCE DEVELOPMENT SYSTEM
66
HRD
HRD play a very crucial role in organization Henery Ford once said ldquotake out my building take out my machines take out all capital but leave my men with me and I will become Henry Ford againrdquo HRD is considered as key to higher productivity better relations and greater profitability for any organization
According to Daftur
ldquoHRD is a system and process concerned with an organized series of learning activities within specified time limits designed to produce behavioral changes in the learner in such a way that it acquires desired level of competence for present or future rolerdquo
67
HRDORGANIZATION ALIGNMENT MODEL
TRAINING AND DEVELOPMENT
69
NEED FOR TRAINING AND DEVELOPMENT
bull Technological advances bull Organizational complexity bull Organizational tenure bull Human relations movement
70
THE TRAINING PROCESS
71
Needs Assessment
72
bull Lecturesbull Audio Visualsbull On-the-job Training (OJT)bull Programmed Instructionbull Computer Assisted Instruction (CAI)bull Simulation
Methods and Techniques of Training
73
Training Methods for Management Development
1048698 Seminars and Conferences
1048698 Case Study
1048698 Role Playing
1048698 Management Games
1048698 Sensitivity Training
74
bull Implementation of the Training Program
bull Evaluation of Training Program
75
Kirkpatrick Model for Evaluating Effectiveness of Training Programs
1 Reactions
2 Learning
3 Behaviors
Results or Return on Investment (ROI)
76
SPECIAL TOPICS IN TRAINING ANDDEVELOPMENT
bull Cross-cultural Training
bull Orientation Training
bull Team-training and Cross-training
bull Diversity Training
COMPENSATION AND REWARDS
78
COMPENSATION OVERVIEW
Compensation is the process of directly and indirectly rewarding employees on a current or deferred basis for their performance of assigned tasks It consists of
1048698 Direct Financial Compensation Wages salaries bonuses commissions
1048698 Indirect Financial Compensation All financial rewards not included in direct compensation (benefits)
1048698 Non-financial Compensation Satisfaction received from the job or from the psychological andor physical environment of the job
JOB EVALUATION TECHNIQUE
The general step-wise procedure for job evaluation is as under
1 Select the group of jobs
2 Study the job (job analysis)
3 Prepare job description ndash approval
4 Device an evaluation plan ndash common characteristicstraits
5 Establish a committee of raters and rateevaluate
6 Group or classify the jobs
7 Convert job grades to money value along with Wage survey
8 Obtain approval from Union and Management
9 Establish a suitable grievance procedure
COMPONENTS OF COMPENSATION SYSTEM
1 Basic WagesSalaries
2 Dearness Allowance
3 Bonus
4 Commissions
5 Mixed Plans
6 Piece Rate Wages
7 Sign on Bonuses
8 Profit Sharing Payments
9 Fringe Benefits
COMPENSATION EQUITY
1048698 External Equity Employees are paid comparably to those who perform similar jobs in other industries
1048698 Internal Equity Employees are paid according to relative value of their jobs within an organisation
1048698 Employee Equity Individuals performing similar jobs for the same firm are rewarded according to factors unique to the employee such as performance level or seniority
1048698 Team Equity More productive teams receive greater rewards than less productive groups
INTERNATIONAL COMPENSATION
Elements of Expatriate Compensation
Basic Pay Amount of money that an expatriate receives from home country Used for
Bonus calculation
Benefits
1048698 One third of compensation
1048698 Extra vacation special leaves air fares for their families for an annual visit home
emergency leaves
1048698 Housing
1048698 Utilities ndash air conditioner bottled water electricity telephone call expenses
1048698 Car ndash car expenses chauffeur hired vehicle
Helping hands servants gardeners security
1048698 Club subscription
1048698 Educational benefits
Allowances
1048698 COLA ndash cost of living between home country and foreign country inflation
1048698 Relocation allowances
1048698 Hardship allowances
1048698 Separation allowances
1048698 Clothing allowances ndash very cold climates
1048698 Home leave allowances
1048698 Spouse assistance allowances
REWARDS SYSTEM
Reward System as Followed by Organisations
1 Incentive and Rewards
2 Competency Related Pay
3 Skill Based Pay
4 Team Based Rewards
5 Profit Sharing
7 Employee Ownership
8 Statutory and Voluntary Benefits
FORMS OF RECOGNITION
Examples of Formal Recognition
1 Milestone Service Anniversary Awards (5101520 25 years of service)
2 Ideas Improvement amp Performance Awards
3 Service Awards
a) Teamworkleadership
b) Customer Service
c) Citizenship
d) Innovation
e) Attendance
4 Awards would include
a) PlaquesDesk trophies
b) Certificates
c) GiftsCertificates
d) Picture in the webpage
FORMS OF RECOGNITION
Examples of Informal Recognition
1 Team Building Retreats
2 Acknowledgement of DeptDivision goals achieved
3 Project Completion meals
4 Birthday cakes and cards
5 Picnics
6 Staff Appreciation Day
7 Holiday Parties
8 Dress-up Days
9 Corporate Merchandise
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-
11
Statement of human qualification necessary to do the job includes
1048698 Education
1048698 Experience
1048698 Training
1048698 Communication skills
1048698 Emotional characteristics
1048698 Physical effort
JOB SPECIFICATION
12
USE OF JOB ANALYSIS
bull Human resource planningbull Recruitmentbull Selectionbull Training bull Counseling bull Employee safety bull Performance appraisal bull Job evaluation
13
bull It integrates the work context (tasks functions and relationships) the rewards (extrinsic and intrinsic) and the qualifications required (skills knowledge abilities) for each job in a way that meets the needs of employees and the organizations
bull Job Enlargement bull Job Enrichment bull Job Rotation
JOB DESIGN
14
Job Characteristics
Skill Variety The extent to which the work requires several different activities for successful completion
Task Identity
The extent to which the job includes a ldquowholerdquo identifiable unit of work that is carried out from start to finish and that results in a visible outcome
Task Significance The impact the job has on other people
Autonomy The extent of individual freedom and discretion in the work and its scheduling
Feedback The amount of information received about how well or how poorly one has performed
15
HUMAN RESOURCE PLANNING
16
OBJECTIVES OF HRP
1 to prevent overstaffing and understaffing
2 to ensure employee availability
3 to ensure that the organization is responsive to the environment
4 to provide direction to all HR activities and
5 to build line and staff partnership
17
bull Environmental scanning
bull Forecasting and analyzing demand for human resources
bull Forecasting and analyzing supply of human resources
bull Developing action plans to match human resource demand and supplyndash HR Supply = HR demandndash HR Supply lt HR demand (deficitshortage)ndash HR Supply gt HR demand (surplus)
PROCESS OF HRP
18
bull Qualitative Methods
ndash Estimation (Centralized ndash HR Decentralized ndash Line Mgrs
ndash Expert Opinions
(a) Delphi techniques
(b) Group brainstorming
(c) Nominal group technique
(d) Averaging
ndash Sales force estimate
TECHNIQUES OF HR DEMAND FORECASTING
19
bull Quantitative Methods
bull Trend analysis and projection
bull Simulation models (probabilities of future events to estimate future employment levels)
bull Workload analysis (Both the number of employees and the kind of employees required to achieve organizational goals are identified)
bull Markov analysis
TECHNIQUES OF HR DEMAND FORECASTING
20
ATTRACTING THE TALENT RECRUITMENT
SELECTION AND OUTSOURCING
21
Internal Sources of Recruitment
1 Transfers
2 Promotions
3 Upgrading and demotion
4 Retired and retrenched employees
5 Deceased employees and disabled employees
SOURCES OF RECRUITMENT
22
External Sources of Recruitment
bull Press advertisements bull Educational institutesbull Placement agencies bull Employment exchanges bull Labour contractorsbull Unsolicited applicants bull Employee referralsrecommendations
SOURCES OF RECRUITMENT
23
THE SELECTION PROCESS
1 Pre screening
2 Initial interview
3 Reference and other checks
4 Application forms or lsquoblanksrsquo
5 Selection testing
6 Comprehensive interview
7 Job offer
8 Medical examination
24
Interviews
I Unstructured Interview
II Situational Interview
III Behavior Description Interviews
IV Comprehensive Structured Interviews
V Structured Behavioral Interview
25
PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
1048698 Unclear role of interviewer
1048698 Unprepared interviewer
1048698 Halo effect
1048698 Snap judgement
1048698 Personal biases
1048698 Ineffective communication
1048698 Contrast effect
1048698 Reflection effect
1048698 Satisfying onersquos own needs
26
bull INDUCTION
bull OUTSOURCING
27
COMPETENCY MAPPING AND ASSESSMENT CENTRES
28
Competencies
competencies are typically defined as a combination of knowledge skills abilities and other individual characteristics that can be reliably measured and that can be shown to differentiate performance
29
VARIOUS COMPETENCY MODELS
1048698Job Competencies Assessment Model interviews and
observations of outstanding and average performers
1048698Modified Job Competence Assessment Model a written account
of critical incidents (to reduce costs)
1048698Generic Model Overlay Method off-the-shelf
1048698Customized Generic Model Method tentative list of
competencies that are identified internally
1048698Flexible Job Competency Model Method under different conditions in the future
1048698Systems Method behaviors that may be important in the
future
30
HISTORY OF ASSESSMENT CENTRES
bull 1942
bull exceptional smartness
bull War Office Selection Boards
31
MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
Types of Psychological Tests
1048698 IQAchievement tests
1048698 Situational tests Situations are given and an individualrsquos behaviorresponse is observed
1048698 Psychometric tests
1048698 Personality Questionnaire
1048698 Interest Questionnaire
1048698 Values Questionnaire
32
MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
bull The Leaderless Group Discussion (LGD)bull In-basket Exercisebull Group Exercisesbull Behavioral Event Interviews
33
Difference between Assessment Centre and Development Center
34
PERFORMANCE PLANNING AND REVIEW
35
GOALS OF PERFORMANCE APPRAISAL
1048698 Each objective should be SMART ndash specific measurable agreed realistic and time-limited
1048698 Each objective must be in an area over which the employee has control
1048698 Give each objective a deadline
1048698 A clear target allows you to measure whether the employee is making the progress you expect
1048698 Provide information to assist in the HR decisions like promotions transfers etc
36
PROCESS OF PERFORMANCE APPRAISAL
bull Establishing Performance Standards
bull Communicating the Standards
37
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
bull Broadly all methods of appraisals can be divided into two different categories
bull 1048698 Past Oriented Methodsbull 1048698 Future Oriented Methods
38
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Past Oriented Methods
1 Rating Scales Rating scales consists of several numerical scales representing job related performance criterions such as dependability initiative output attendance attitude etc Each scales ranges from excellent to poor The total numerical scores are computed and final conclusions are derived
Advantages Adaptability easy to use low cost every type of job can be
evaluated large number of employees covered no formal training required
Disadvantages Raterrsquos biases
2 Checklist Under this method checklist of statements of traits of employee in the
form of Yes or No based questions is prepared Here the rater only does the
reporting or checking and HR department does the actual evaluation
Advantages Economy ease of administration limited training required
standardization
Disadvantages Raters biases use of improper weighs by HR does not allow rater
to give relative ratings
39
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
3 Forced Choice Method The series of statements arranged in the blocks of two or more are given and the rater indicates which statement is true or false The rater is forced to make a choice HR department does actual assessment
Advantages Absence of personal biases because of forced choice
Disadvantages Statements may be wrongly framed
4 Forced Distribution Method Here employees are clustered around a high point on a rating scale Rater is compelled to distribute the employees on all points on the scale It is assumed that the performance is conformed to normal distribution
Advantages Eliminates biasness
Disadvantages Assumption of normal distribution unrealistic errors of central
tendency
40
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
5 Critical Incidents Method The approach is focused on certain critical behaviors
of employee that makes all the difference in the performance Supervisors as and
when they occur record such incidents
Advantages Evaluations are based on actual job behaviors ratings are supported
by descriptions feedback is easy reduces recency biases chances of subordinate
improvement are high
Disadvantages Negative incidents can be prioritized forgetting incidents overly
close supervision feedback may be too much and may appear to be punishment
6 Behaviorally Anchored Rating Scales Statements of effective and ineffective
behaviors determine the points They are said to be behaviorally anchored The
rater is supposed to say which behavior describes the employee performance
Advantages Helps overcome rating errors
Disadvantages Suffers from distortions inherent in most rating techniques
41
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
7 Field Review Method This is an appraisal done by someone outside employeesrsquo own department usually from corporate or HR department
Advantages Useful for managerial level promotions when comparable
information is needed
Disadvantages Outsider is generally not familiar with employees work
environment Observation of actual behaviors not possible
8 Performance Tests amp Observations This is based on the test of knowledge or skills The tests may be written or an actual presentation of skills Tests must be reliable and validated to be useful
Advantages Tests may be apt to measure potential more than actual performance
Disadvantages Tests may suffer if costs of test development or administration are high
42
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Future Oriented Methods
1 Management by Objectives It means management by objectives and the
performance is rated against the achievement of objectives stated by the
management MBO process
(a) Establish goals and desired outcomes for each subordinate
(b) Setting performance standards
(c) Comparison of actual goals with goals attained by the employee
(d) Establish new goals and new strategies for goals not achieved in previous
year
43
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Future Oriented Methods
2 Psychological Appraisals
These appraisals are more directed to assess employeersquos potential for future performance rather than the past one It is done in the form of in-depth interviews psychological tests and discussion with supervisors and review of other evaluations
It is more focused on employees emotional intellectual and motivational and other personal characteristics affecting his performance This approach is slow and costly and may be useful for bright young members who may have considerable potential However quality of these appraisals largely depend upon the skills of psychologists who perform the evaluation
44
1 Leniency amp Severity
2 Central Tendency
3 Halo Effect
4 Primacy amp Recency Effect
5 Spillover Effects
6 Status Effect
Problems of RatingRating Biases
45
PERFORMANCE COACHING
The performance coaching process involves five strategies
1 Creating a partnership role To make employees realize that both employees and manger are responsible for performance and build trust amongst them
2 Commitment Inspiring employees to be committed to the goals
3 Competency development Awareness towards developing skills and
competencies required to reach to organizational goals
4 Perseverance Developing lsquonever say diersquo attitude among organizational members
5 Shaping the environment Creating conditions for employee development
46
THE COACHING DISCUSSION
Kinlawrsquos Approach
Kinlaw suggests a three-stage approach to the coaching discussion as follows
1048698 Confronting or presenting
1048698 Using reactions to develop information
1048698 Resolving or resolution
47
THE COACHING DISCUSSION
bull Fourniesrsquo Approach
bull Step 1 Get the employeersquos agreement that a problem existsbull Step 2 Mutually discuss alternative solutions to the problembull Step 3 Mutually agree on actions to be taken to solve the problembull Step 4 Follow-up to measure resultsbull Step 5 Recognize any achievement when it occurs
48
MENTORING
bull Mentorship is a process where an experienced person provides help guidance support to nurture and develop a less experienced person referred to as a proteacutegeacute apprentice mentee or (person) It improves the self esteem of mentee and increases hisher chance for success
49
MENTORING - Kinds
1048698 New-hire mentorship
1048698 High-potential mentorship
1048698 Mentorship in Education
50
POTENTIAL APPRAISAL CAREER AND SUCCESSION
PLANNING
51
POTENTIAL APPRAISAL
Purpose of Potential Appraisal
Potential appraisal serves the following purposes
1048698 To advise employees about their overall career development and future prospects
1048698 Help the organisation to chalk out succession plans
1048698 Motivate the employees to further develop their skills and competencies
1048698 To identify the training needs
52
POTENTIAL APPRAISAL
Techniques of Potential Appraisal
1048698 Self-appraisals
1048698 Peer appraisals
1048698 Superior appraisals
1048698 MBO
1048698 Psychological and psychometric tests
1048698 Management games like role playing
1048698 Leadership exercises etc
53
CAREER PLANNING
Steps in Career Planning Process
Step One Self Assessment
Step Two Goal Setting
Step Three AcademicCareer Options
Step Four Plan of Action
Step Five Catch Hold of Opportunities
54
bull Succession Planning refers to the process of developing the second line for taking up a higher role in the organization
SUCCESSION PLANNING
55
HR MEASUREMENT AND AUDIT
bull Audit helps the organization have a clear understanding of the lacunae and better align the HR processes with Business goals
bull The audit itself is a diagnostic tool not a prescriptive instrument It helps in identifying what is missing or needs to improve It is most useful when an organization is ready to act on the findings and to evolve its HR function to play a greater strategic role
56
WHY CONDUCT AN HR AUDIT
1048698 It helps promote more professionalism and professional management
1048698 HR audit helps an organization to be aware of its present practices policies
and their adherence
1048698 Benchmarking to improve HR practices
1048698 The organization can benchmark its processes with best-in-class organizations
1048698 HR audit suggest improvement measures keeping the organizational strategic goals and vision in mind
57
THE HR AUDIT PROCESS
InterviewsQuestionnaires
The audit team interviews the following
1048698 Top Management (CEO Unit Heads)
1048698 Line Managers (eg Managers in production quality purchase and marketing)
1048698 HRD Staff
1048698 Workmen and others
Observation and Recording
Follow-up and Corrections done
58
HUMAN RESOURCE ACCOUNTING
bull The American Accounting Associationrsquos Committee on Human Resource Accounting (1973) has defined Human Resource Accounting as ldquothe process of identifying and measuring data about human resources and communicating this information to interested partiesrdquo
bull It is the measurement and reporting of the cost and value of people in organizational Resources
59
METHODS OF HUMAN RESOURCE ACCOUNTING
Methods of Valuing and Accounting of Human Resources
The methods to value and account for human resources can be classified into the following categories
1 Methods based on costs (which include costs incurred by the company to recruit hire train and develop human resources)
2 Methods based on economic value of human resources and the capitalisation of companyrsquos earnings
60
HUMAN RESOURCE ACCOUNTING
Methods based on Cost
Historical Cost Method
Under this method the cost of acquisition ie selection hiring training costs of employees are capitalised and written off over the expected useful life of the employees In case the personnel leave the company before the anticipated period of service then the unamortised portion of costs remaining in the companyrsquos books is written off against the profit and loss account in that year If the period of service exceeds the anticipated time then amortisation of costs is rescheduled
Replacement Cost Method
Under this method the human resources are valued at their replacement cost ie The monetary implications of replacing existing personnel
Standard Cost Method
Under this method standard costs of recruiting hiring training and developing per grade of employees are determined annually The total standard cost for all personnel of the company is the value of human resources
61
HUMAN RESOURCE ACCOUNTING
bull HR Accounting based on Value
bull Economic Value Method
bull Under this method the net present value of incremental cash flows attributed to human resources is taken as the asset value
62
HUMAN RESOURCE INFORMATION SYSTEMS(HRIS)
bull An information system may be automated or manual and involves collectingprocessing transmitting and disseminating data that represents user information
63
HRIS ndash APPLICATION AND UTILITIES
Personnel administration It will encompass information about each employee
such as name address personal details etc
1048698 Salary administration Generate personnel cost reports conduct lsquowhat if
analysisrsquo provide compensation history
1048698 Leave and absence recording Essentially being able to provide comprehensive
method of tracking absences late coming reports on excess leave availed leave
lapsed
1048698 Skill inventory Recording of acquired skills and monitor the skill database at the
employee and organisational level
1048698 Performance appraisal The system should record individual employee
performance appraisal data such as appraisal ratings due date of appraisal
training needs identified during the appraisal process
1048698 Recruitment Record recruitment cost lead time to fill a vacant position
recruitment methods applicant and resume management
1048698 Career planning HRIS System can provide succession plan reports identifying
employees earmarked for future position
64
HRIS ndash DISADVANTAGES
May be expensive ndash financing the technology
1048698 Thorough understanding of what constitutes quality information for the user
1048698 Computer cannot substitute human beings
HUMAN RESOURCE DEVELOPMENT SYSTEM
66
HRD
HRD play a very crucial role in organization Henery Ford once said ldquotake out my building take out my machines take out all capital but leave my men with me and I will become Henry Ford againrdquo HRD is considered as key to higher productivity better relations and greater profitability for any organization
According to Daftur
ldquoHRD is a system and process concerned with an organized series of learning activities within specified time limits designed to produce behavioral changes in the learner in such a way that it acquires desired level of competence for present or future rolerdquo
67
HRDORGANIZATION ALIGNMENT MODEL
TRAINING AND DEVELOPMENT
69
NEED FOR TRAINING AND DEVELOPMENT
bull Technological advances bull Organizational complexity bull Organizational tenure bull Human relations movement
70
THE TRAINING PROCESS
71
Needs Assessment
72
bull Lecturesbull Audio Visualsbull On-the-job Training (OJT)bull Programmed Instructionbull Computer Assisted Instruction (CAI)bull Simulation
Methods and Techniques of Training
73
Training Methods for Management Development
1048698 Seminars and Conferences
1048698 Case Study
1048698 Role Playing
1048698 Management Games
1048698 Sensitivity Training
74
bull Implementation of the Training Program
bull Evaluation of Training Program
75
Kirkpatrick Model for Evaluating Effectiveness of Training Programs
1 Reactions
2 Learning
3 Behaviors
Results or Return on Investment (ROI)
76
SPECIAL TOPICS IN TRAINING ANDDEVELOPMENT
bull Cross-cultural Training
bull Orientation Training
bull Team-training and Cross-training
bull Diversity Training
COMPENSATION AND REWARDS
78
COMPENSATION OVERVIEW
Compensation is the process of directly and indirectly rewarding employees on a current or deferred basis for their performance of assigned tasks It consists of
1048698 Direct Financial Compensation Wages salaries bonuses commissions
1048698 Indirect Financial Compensation All financial rewards not included in direct compensation (benefits)
1048698 Non-financial Compensation Satisfaction received from the job or from the psychological andor physical environment of the job
JOB EVALUATION TECHNIQUE
The general step-wise procedure for job evaluation is as under
1 Select the group of jobs
2 Study the job (job analysis)
3 Prepare job description ndash approval
4 Device an evaluation plan ndash common characteristicstraits
5 Establish a committee of raters and rateevaluate
6 Group or classify the jobs
7 Convert job grades to money value along with Wage survey
8 Obtain approval from Union and Management
9 Establish a suitable grievance procedure
COMPONENTS OF COMPENSATION SYSTEM
1 Basic WagesSalaries
2 Dearness Allowance
3 Bonus
4 Commissions
5 Mixed Plans
6 Piece Rate Wages
7 Sign on Bonuses
8 Profit Sharing Payments
9 Fringe Benefits
COMPENSATION EQUITY
1048698 External Equity Employees are paid comparably to those who perform similar jobs in other industries
1048698 Internal Equity Employees are paid according to relative value of their jobs within an organisation
1048698 Employee Equity Individuals performing similar jobs for the same firm are rewarded according to factors unique to the employee such as performance level or seniority
1048698 Team Equity More productive teams receive greater rewards than less productive groups
INTERNATIONAL COMPENSATION
Elements of Expatriate Compensation
Basic Pay Amount of money that an expatriate receives from home country Used for
Bonus calculation
Benefits
1048698 One third of compensation
1048698 Extra vacation special leaves air fares for their families for an annual visit home
emergency leaves
1048698 Housing
1048698 Utilities ndash air conditioner bottled water electricity telephone call expenses
1048698 Car ndash car expenses chauffeur hired vehicle
Helping hands servants gardeners security
1048698 Club subscription
1048698 Educational benefits
Allowances
1048698 COLA ndash cost of living between home country and foreign country inflation
1048698 Relocation allowances
1048698 Hardship allowances
1048698 Separation allowances
1048698 Clothing allowances ndash very cold climates
1048698 Home leave allowances
1048698 Spouse assistance allowances
REWARDS SYSTEM
Reward System as Followed by Organisations
1 Incentive and Rewards
2 Competency Related Pay
3 Skill Based Pay
4 Team Based Rewards
5 Profit Sharing
7 Employee Ownership
8 Statutory and Voluntary Benefits
FORMS OF RECOGNITION
Examples of Formal Recognition
1 Milestone Service Anniversary Awards (5101520 25 years of service)
2 Ideas Improvement amp Performance Awards
3 Service Awards
a) Teamworkleadership
b) Customer Service
c) Citizenship
d) Innovation
e) Attendance
4 Awards would include
a) PlaquesDesk trophies
b) Certificates
c) GiftsCertificates
d) Picture in the webpage
FORMS OF RECOGNITION
Examples of Informal Recognition
1 Team Building Retreats
2 Acknowledgement of DeptDivision goals achieved
3 Project Completion meals
4 Birthday cakes and cards
5 Picnics
6 Staff Appreciation Day
7 Holiday Parties
8 Dress-up Days
9 Corporate Merchandise
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-
12
USE OF JOB ANALYSIS
bull Human resource planningbull Recruitmentbull Selectionbull Training bull Counseling bull Employee safety bull Performance appraisal bull Job evaluation
13
bull It integrates the work context (tasks functions and relationships) the rewards (extrinsic and intrinsic) and the qualifications required (skills knowledge abilities) for each job in a way that meets the needs of employees and the organizations
bull Job Enlargement bull Job Enrichment bull Job Rotation
JOB DESIGN
14
Job Characteristics
Skill Variety The extent to which the work requires several different activities for successful completion
Task Identity
The extent to which the job includes a ldquowholerdquo identifiable unit of work that is carried out from start to finish and that results in a visible outcome
Task Significance The impact the job has on other people
Autonomy The extent of individual freedom and discretion in the work and its scheduling
Feedback The amount of information received about how well or how poorly one has performed
15
HUMAN RESOURCE PLANNING
16
OBJECTIVES OF HRP
1 to prevent overstaffing and understaffing
2 to ensure employee availability
3 to ensure that the organization is responsive to the environment
4 to provide direction to all HR activities and
5 to build line and staff partnership
17
bull Environmental scanning
bull Forecasting and analyzing demand for human resources
bull Forecasting and analyzing supply of human resources
bull Developing action plans to match human resource demand and supplyndash HR Supply = HR demandndash HR Supply lt HR demand (deficitshortage)ndash HR Supply gt HR demand (surplus)
PROCESS OF HRP
18
bull Qualitative Methods
ndash Estimation (Centralized ndash HR Decentralized ndash Line Mgrs
ndash Expert Opinions
(a) Delphi techniques
(b) Group brainstorming
(c) Nominal group technique
(d) Averaging
ndash Sales force estimate
TECHNIQUES OF HR DEMAND FORECASTING
19
bull Quantitative Methods
bull Trend analysis and projection
bull Simulation models (probabilities of future events to estimate future employment levels)
bull Workload analysis (Both the number of employees and the kind of employees required to achieve organizational goals are identified)
bull Markov analysis
TECHNIQUES OF HR DEMAND FORECASTING
20
ATTRACTING THE TALENT RECRUITMENT
SELECTION AND OUTSOURCING
21
Internal Sources of Recruitment
1 Transfers
2 Promotions
3 Upgrading and demotion
4 Retired and retrenched employees
5 Deceased employees and disabled employees
SOURCES OF RECRUITMENT
22
External Sources of Recruitment
bull Press advertisements bull Educational institutesbull Placement agencies bull Employment exchanges bull Labour contractorsbull Unsolicited applicants bull Employee referralsrecommendations
SOURCES OF RECRUITMENT
23
THE SELECTION PROCESS
1 Pre screening
2 Initial interview
3 Reference and other checks
4 Application forms or lsquoblanksrsquo
5 Selection testing
6 Comprehensive interview
7 Job offer
8 Medical examination
24
Interviews
I Unstructured Interview
II Situational Interview
III Behavior Description Interviews
IV Comprehensive Structured Interviews
V Structured Behavioral Interview
25
PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
1048698 Unclear role of interviewer
1048698 Unprepared interviewer
1048698 Halo effect
1048698 Snap judgement
1048698 Personal biases
1048698 Ineffective communication
1048698 Contrast effect
1048698 Reflection effect
1048698 Satisfying onersquos own needs
26
bull INDUCTION
bull OUTSOURCING
27
COMPETENCY MAPPING AND ASSESSMENT CENTRES
28
Competencies
competencies are typically defined as a combination of knowledge skills abilities and other individual characteristics that can be reliably measured and that can be shown to differentiate performance
29
VARIOUS COMPETENCY MODELS
1048698Job Competencies Assessment Model interviews and
observations of outstanding and average performers
1048698Modified Job Competence Assessment Model a written account
of critical incidents (to reduce costs)
1048698Generic Model Overlay Method off-the-shelf
1048698Customized Generic Model Method tentative list of
competencies that are identified internally
1048698Flexible Job Competency Model Method under different conditions in the future
1048698Systems Method behaviors that may be important in the
future
30
HISTORY OF ASSESSMENT CENTRES
bull 1942
bull exceptional smartness
bull War Office Selection Boards
31
MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
Types of Psychological Tests
1048698 IQAchievement tests
1048698 Situational tests Situations are given and an individualrsquos behaviorresponse is observed
1048698 Psychometric tests
1048698 Personality Questionnaire
1048698 Interest Questionnaire
1048698 Values Questionnaire
32
MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
bull The Leaderless Group Discussion (LGD)bull In-basket Exercisebull Group Exercisesbull Behavioral Event Interviews
33
Difference between Assessment Centre and Development Center
34
PERFORMANCE PLANNING AND REVIEW
35
GOALS OF PERFORMANCE APPRAISAL
1048698 Each objective should be SMART ndash specific measurable agreed realistic and time-limited
1048698 Each objective must be in an area over which the employee has control
1048698 Give each objective a deadline
1048698 A clear target allows you to measure whether the employee is making the progress you expect
1048698 Provide information to assist in the HR decisions like promotions transfers etc
36
PROCESS OF PERFORMANCE APPRAISAL
bull Establishing Performance Standards
bull Communicating the Standards
37
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
bull Broadly all methods of appraisals can be divided into two different categories
bull 1048698 Past Oriented Methodsbull 1048698 Future Oriented Methods
38
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Past Oriented Methods
1 Rating Scales Rating scales consists of several numerical scales representing job related performance criterions such as dependability initiative output attendance attitude etc Each scales ranges from excellent to poor The total numerical scores are computed and final conclusions are derived
Advantages Adaptability easy to use low cost every type of job can be
evaluated large number of employees covered no formal training required
Disadvantages Raterrsquos biases
2 Checklist Under this method checklist of statements of traits of employee in the
form of Yes or No based questions is prepared Here the rater only does the
reporting or checking and HR department does the actual evaluation
Advantages Economy ease of administration limited training required
standardization
Disadvantages Raters biases use of improper weighs by HR does not allow rater
to give relative ratings
39
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
3 Forced Choice Method The series of statements arranged in the blocks of two or more are given and the rater indicates which statement is true or false The rater is forced to make a choice HR department does actual assessment
Advantages Absence of personal biases because of forced choice
Disadvantages Statements may be wrongly framed
4 Forced Distribution Method Here employees are clustered around a high point on a rating scale Rater is compelled to distribute the employees on all points on the scale It is assumed that the performance is conformed to normal distribution
Advantages Eliminates biasness
Disadvantages Assumption of normal distribution unrealistic errors of central
tendency
40
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
5 Critical Incidents Method The approach is focused on certain critical behaviors
of employee that makes all the difference in the performance Supervisors as and
when they occur record such incidents
Advantages Evaluations are based on actual job behaviors ratings are supported
by descriptions feedback is easy reduces recency biases chances of subordinate
improvement are high
Disadvantages Negative incidents can be prioritized forgetting incidents overly
close supervision feedback may be too much and may appear to be punishment
6 Behaviorally Anchored Rating Scales Statements of effective and ineffective
behaviors determine the points They are said to be behaviorally anchored The
rater is supposed to say which behavior describes the employee performance
Advantages Helps overcome rating errors
Disadvantages Suffers from distortions inherent in most rating techniques
41
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
7 Field Review Method This is an appraisal done by someone outside employeesrsquo own department usually from corporate or HR department
Advantages Useful for managerial level promotions when comparable
information is needed
Disadvantages Outsider is generally not familiar with employees work
environment Observation of actual behaviors not possible
8 Performance Tests amp Observations This is based on the test of knowledge or skills The tests may be written or an actual presentation of skills Tests must be reliable and validated to be useful
Advantages Tests may be apt to measure potential more than actual performance
Disadvantages Tests may suffer if costs of test development or administration are high
42
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Future Oriented Methods
1 Management by Objectives It means management by objectives and the
performance is rated against the achievement of objectives stated by the
management MBO process
(a) Establish goals and desired outcomes for each subordinate
(b) Setting performance standards
(c) Comparison of actual goals with goals attained by the employee
(d) Establish new goals and new strategies for goals not achieved in previous
year
43
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Future Oriented Methods
2 Psychological Appraisals
These appraisals are more directed to assess employeersquos potential for future performance rather than the past one It is done in the form of in-depth interviews psychological tests and discussion with supervisors and review of other evaluations
It is more focused on employees emotional intellectual and motivational and other personal characteristics affecting his performance This approach is slow and costly and may be useful for bright young members who may have considerable potential However quality of these appraisals largely depend upon the skills of psychologists who perform the evaluation
44
1 Leniency amp Severity
2 Central Tendency
3 Halo Effect
4 Primacy amp Recency Effect
5 Spillover Effects
6 Status Effect
Problems of RatingRating Biases
45
PERFORMANCE COACHING
The performance coaching process involves five strategies
1 Creating a partnership role To make employees realize that both employees and manger are responsible for performance and build trust amongst them
2 Commitment Inspiring employees to be committed to the goals
3 Competency development Awareness towards developing skills and
competencies required to reach to organizational goals
4 Perseverance Developing lsquonever say diersquo attitude among organizational members
5 Shaping the environment Creating conditions for employee development
46
THE COACHING DISCUSSION
Kinlawrsquos Approach
Kinlaw suggests a three-stage approach to the coaching discussion as follows
1048698 Confronting or presenting
1048698 Using reactions to develop information
1048698 Resolving or resolution
47
THE COACHING DISCUSSION
bull Fourniesrsquo Approach
bull Step 1 Get the employeersquos agreement that a problem existsbull Step 2 Mutually discuss alternative solutions to the problembull Step 3 Mutually agree on actions to be taken to solve the problembull Step 4 Follow-up to measure resultsbull Step 5 Recognize any achievement when it occurs
48
MENTORING
bull Mentorship is a process where an experienced person provides help guidance support to nurture and develop a less experienced person referred to as a proteacutegeacute apprentice mentee or (person) It improves the self esteem of mentee and increases hisher chance for success
49
MENTORING - Kinds
1048698 New-hire mentorship
1048698 High-potential mentorship
1048698 Mentorship in Education
50
POTENTIAL APPRAISAL CAREER AND SUCCESSION
PLANNING
51
POTENTIAL APPRAISAL
Purpose of Potential Appraisal
Potential appraisal serves the following purposes
1048698 To advise employees about their overall career development and future prospects
1048698 Help the organisation to chalk out succession plans
1048698 Motivate the employees to further develop their skills and competencies
1048698 To identify the training needs
52
POTENTIAL APPRAISAL
Techniques of Potential Appraisal
1048698 Self-appraisals
1048698 Peer appraisals
1048698 Superior appraisals
1048698 MBO
1048698 Psychological and psychometric tests
1048698 Management games like role playing
1048698 Leadership exercises etc
53
CAREER PLANNING
Steps in Career Planning Process
Step One Self Assessment
Step Two Goal Setting
Step Three AcademicCareer Options
Step Four Plan of Action
Step Five Catch Hold of Opportunities
54
bull Succession Planning refers to the process of developing the second line for taking up a higher role in the organization
SUCCESSION PLANNING
55
HR MEASUREMENT AND AUDIT
bull Audit helps the organization have a clear understanding of the lacunae and better align the HR processes with Business goals
bull The audit itself is a diagnostic tool not a prescriptive instrument It helps in identifying what is missing or needs to improve It is most useful when an organization is ready to act on the findings and to evolve its HR function to play a greater strategic role
56
WHY CONDUCT AN HR AUDIT
1048698 It helps promote more professionalism and professional management
1048698 HR audit helps an organization to be aware of its present practices policies
and their adherence
1048698 Benchmarking to improve HR practices
1048698 The organization can benchmark its processes with best-in-class organizations
1048698 HR audit suggest improvement measures keeping the organizational strategic goals and vision in mind
57
THE HR AUDIT PROCESS
InterviewsQuestionnaires
The audit team interviews the following
1048698 Top Management (CEO Unit Heads)
1048698 Line Managers (eg Managers in production quality purchase and marketing)
1048698 HRD Staff
1048698 Workmen and others
Observation and Recording
Follow-up and Corrections done
58
HUMAN RESOURCE ACCOUNTING
bull The American Accounting Associationrsquos Committee on Human Resource Accounting (1973) has defined Human Resource Accounting as ldquothe process of identifying and measuring data about human resources and communicating this information to interested partiesrdquo
bull It is the measurement and reporting of the cost and value of people in organizational Resources
59
METHODS OF HUMAN RESOURCE ACCOUNTING
Methods of Valuing and Accounting of Human Resources
The methods to value and account for human resources can be classified into the following categories
1 Methods based on costs (which include costs incurred by the company to recruit hire train and develop human resources)
2 Methods based on economic value of human resources and the capitalisation of companyrsquos earnings
60
HUMAN RESOURCE ACCOUNTING
Methods based on Cost
Historical Cost Method
Under this method the cost of acquisition ie selection hiring training costs of employees are capitalised and written off over the expected useful life of the employees In case the personnel leave the company before the anticipated period of service then the unamortised portion of costs remaining in the companyrsquos books is written off against the profit and loss account in that year If the period of service exceeds the anticipated time then amortisation of costs is rescheduled
Replacement Cost Method
Under this method the human resources are valued at their replacement cost ie The monetary implications of replacing existing personnel
Standard Cost Method
Under this method standard costs of recruiting hiring training and developing per grade of employees are determined annually The total standard cost for all personnel of the company is the value of human resources
61
HUMAN RESOURCE ACCOUNTING
bull HR Accounting based on Value
bull Economic Value Method
bull Under this method the net present value of incremental cash flows attributed to human resources is taken as the asset value
62
HUMAN RESOURCE INFORMATION SYSTEMS(HRIS)
bull An information system may be automated or manual and involves collectingprocessing transmitting and disseminating data that represents user information
63
HRIS ndash APPLICATION AND UTILITIES
Personnel administration It will encompass information about each employee
such as name address personal details etc
1048698 Salary administration Generate personnel cost reports conduct lsquowhat if
analysisrsquo provide compensation history
1048698 Leave and absence recording Essentially being able to provide comprehensive
method of tracking absences late coming reports on excess leave availed leave
lapsed
1048698 Skill inventory Recording of acquired skills and monitor the skill database at the
employee and organisational level
1048698 Performance appraisal The system should record individual employee
performance appraisal data such as appraisal ratings due date of appraisal
training needs identified during the appraisal process
1048698 Recruitment Record recruitment cost lead time to fill a vacant position
recruitment methods applicant and resume management
1048698 Career planning HRIS System can provide succession plan reports identifying
employees earmarked for future position
64
HRIS ndash DISADVANTAGES
May be expensive ndash financing the technology
1048698 Thorough understanding of what constitutes quality information for the user
1048698 Computer cannot substitute human beings
HUMAN RESOURCE DEVELOPMENT SYSTEM
66
HRD
HRD play a very crucial role in organization Henery Ford once said ldquotake out my building take out my machines take out all capital but leave my men with me and I will become Henry Ford againrdquo HRD is considered as key to higher productivity better relations and greater profitability for any organization
According to Daftur
ldquoHRD is a system and process concerned with an organized series of learning activities within specified time limits designed to produce behavioral changes in the learner in such a way that it acquires desired level of competence for present or future rolerdquo
67
HRDORGANIZATION ALIGNMENT MODEL
TRAINING AND DEVELOPMENT
69
NEED FOR TRAINING AND DEVELOPMENT
bull Technological advances bull Organizational complexity bull Organizational tenure bull Human relations movement
70
THE TRAINING PROCESS
71
Needs Assessment
72
bull Lecturesbull Audio Visualsbull On-the-job Training (OJT)bull Programmed Instructionbull Computer Assisted Instruction (CAI)bull Simulation
Methods and Techniques of Training
73
Training Methods for Management Development
1048698 Seminars and Conferences
1048698 Case Study
1048698 Role Playing
1048698 Management Games
1048698 Sensitivity Training
74
bull Implementation of the Training Program
bull Evaluation of Training Program
75
Kirkpatrick Model for Evaluating Effectiveness of Training Programs
1 Reactions
2 Learning
3 Behaviors
Results or Return on Investment (ROI)
76
SPECIAL TOPICS IN TRAINING ANDDEVELOPMENT
bull Cross-cultural Training
bull Orientation Training
bull Team-training and Cross-training
bull Diversity Training
COMPENSATION AND REWARDS
78
COMPENSATION OVERVIEW
Compensation is the process of directly and indirectly rewarding employees on a current or deferred basis for their performance of assigned tasks It consists of
1048698 Direct Financial Compensation Wages salaries bonuses commissions
1048698 Indirect Financial Compensation All financial rewards not included in direct compensation (benefits)
1048698 Non-financial Compensation Satisfaction received from the job or from the psychological andor physical environment of the job
JOB EVALUATION TECHNIQUE
The general step-wise procedure for job evaluation is as under
1 Select the group of jobs
2 Study the job (job analysis)
3 Prepare job description ndash approval
4 Device an evaluation plan ndash common characteristicstraits
5 Establish a committee of raters and rateevaluate
6 Group or classify the jobs
7 Convert job grades to money value along with Wage survey
8 Obtain approval from Union and Management
9 Establish a suitable grievance procedure
COMPONENTS OF COMPENSATION SYSTEM
1 Basic WagesSalaries
2 Dearness Allowance
3 Bonus
4 Commissions
5 Mixed Plans
6 Piece Rate Wages
7 Sign on Bonuses
8 Profit Sharing Payments
9 Fringe Benefits
COMPENSATION EQUITY
1048698 External Equity Employees are paid comparably to those who perform similar jobs in other industries
1048698 Internal Equity Employees are paid according to relative value of their jobs within an organisation
1048698 Employee Equity Individuals performing similar jobs for the same firm are rewarded according to factors unique to the employee such as performance level or seniority
1048698 Team Equity More productive teams receive greater rewards than less productive groups
INTERNATIONAL COMPENSATION
Elements of Expatriate Compensation
Basic Pay Amount of money that an expatriate receives from home country Used for
Bonus calculation
Benefits
1048698 One third of compensation
1048698 Extra vacation special leaves air fares for their families for an annual visit home
emergency leaves
1048698 Housing
1048698 Utilities ndash air conditioner bottled water electricity telephone call expenses
1048698 Car ndash car expenses chauffeur hired vehicle
Helping hands servants gardeners security
1048698 Club subscription
1048698 Educational benefits
Allowances
1048698 COLA ndash cost of living between home country and foreign country inflation
1048698 Relocation allowances
1048698 Hardship allowances
1048698 Separation allowances
1048698 Clothing allowances ndash very cold climates
1048698 Home leave allowances
1048698 Spouse assistance allowances
REWARDS SYSTEM
Reward System as Followed by Organisations
1 Incentive and Rewards
2 Competency Related Pay
3 Skill Based Pay
4 Team Based Rewards
5 Profit Sharing
7 Employee Ownership
8 Statutory and Voluntary Benefits
FORMS OF RECOGNITION
Examples of Formal Recognition
1 Milestone Service Anniversary Awards (5101520 25 years of service)
2 Ideas Improvement amp Performance Awards
3 Service Awards
a) Teamworkleadership
b) Customer Service
c) Citizenship
d) Innovation
e) Attendance
4 Awards would include
a) PlaquesDesk trophies
b) Certificates
c) GiftsCertificates
d) Picture in the webpage
FORMS OF RECOGNITION
Examples of Informal Recognition
1 Team Building Retreats
2 Acknowledgement of DeptDivision goals achieved
3 Project Completion meals
4 Birthday cakes and cards
5 Picnics
6 Staff Appreciation Day
7 Holiday Parties
8 Dress-up Days
9 Corporate Merchandise
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-
13
bull It integrates the work context (tasks functions and relationships) the rewards (extrinsic and intrinsic) and the qualifications required (skills knowledge abilities) for each job in a way that meets the needs of employees and the organizations
bull Job Enlargement bull Job Enrichment bull Job Rotation
JOB DESIGN
14
Job Characteristics
Skill Variety The extent to which the work requires several different activities for successful completion
Task Identity
The extent to which the job includes a ldquowholerdquo identifiable unit of work that is carried out from start to finish and that results in a visible outcome
Task Significance The impact the job has on other people
Autonomy The extent of individual freedom and discretion in the work and its scheduling
Feedback The amount of information received about how well or how poorly one has performed
15
HUMAN RESOURCE PLANNING
16
OBJECTIVES OF HRP
1 to prevent overstaffing and understaffing
2 to ensure employee availability
3 to ensure that the organization is responsive to the environment
4 to provide direction to all HR activities and
5 to build line and staff partnership
17
bull Environmental scanning
bull Forecasting and analyzing demand for human resources
bull Forecasting and analyzing supply of human resources
bull Developing action plans to match human resource demand and supplyndash HR Supply = HR demandndash HR Supply lt HR demand (deficitshortage)ndash HR Supply gt HR demand (surplus)
PROCESS OF HRP
18
bull Qualitative Methods
ndash Estimation (Centralized ndash HR Decentralized ndash Line Mgrs
ndash Expert Opinions
(a) Delphi techniques
(b) Group brainstorming
(c) Nominal group technique
(d) Averaging
ndash Sales force estimate
TECHNIQUES OF HR DEMAND FORECASTING
19
bull Quantitative Methods
bull Trend analysis and projection
bull Simulation models (probabilities of future events to estimate future employment levels)
bull Workload analysis (Both the number of employees and the kind of employees required to achieve organizational goals are identified)
bull Markov analysis
TECHNIQUES OF HR DEMAND FORECASTING
20
ATTRACTING THE TALENT RECRUITMENT
SELECTION AND OUTSOURCING
21
Internal Sources of Recruitment
1 Transfers
2 Promotions
3 Upgrading and demotion
4 Retired and retrenched employees
5 Deceased employees and disabled employees
SOURCES OF RECRUITMENT
22
External Sources of Recruitment
bull Press advertisements bull Educational institutesbull Placement agencies bull Employment exchanges bull Labour contractorsbull Unsolicited applicants bull Employee referralsrecommendations
SOURCES OF RECRUITMENT
23
THE SELECTION PROCESS
1 Pre screening
2 Initial interview
3 Reference and other checks
4 Application forms or lsquoblanksrsquo
5 Selection testing
6 Comprehensive interview
7 Job offer
8 Medical examination
24
Interviews
I Unstructured Interview
II Situational Interview
III Behavior Description Interviews
IV Comprehensive Structured Interviews
V Structured Behavioral Interview
25
PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
1048698 Unclear role of interviewer
1048698 Unprepared interviewer
1048698 Halo effect
1048698 Snap judgement
1048698 Personal biases
1048698 Ineffective communication
1048698 Contrast effect
1048698 Reflection effect
1048698 Satisfying onersquos own needs
26
bull INDUCTION
bull OUTSOURCING
27
COMPETENCY MAPPING AND ASSESSMENT CENTRES
28
Competencies
competencies are typically defined as a combination of knowledge skills abilities and other individual characteristics that can be reliably measured and that can be shown to differentiate performance
29
VARIOUS COMPETENCY MODELS
1048698Job Competencies Assessment Model interviews and
observations of outstanding and average performers
1048698Modified Job Competence Assessment Model a written account
of critical incidents (to reduce costs)
1048698Generic Model Overlay Method off-the-shelf
1048698Customized Generic Model Method tentative list of
competencies that are identified internally
1048698Flexible Job Competency Model Method under different conditions in the future
1048698Systems Method behaviors that may be important in the
future
30
HISTORY OF ASSESSMENT CENTRES
bull 1942
bull exceptional smartness
bull War Office Selection Boards
31
MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
Types of Psychological Tests
1048698 IQAchievement tests
1048698 Situational tests Situations are given and an individualrsquos behaviorresponse is observed
1048698 Psychometric tests
1048698 Personality Questionnaire
1048698 Interest Questionnaire
1048698 Values Questionnaire
32
MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
bull The Leaderless Group Discussion (LGD)bull In-basket Exercisebull Group Exercisesbull Behavioral Event Interviews
33
Difference between Assessment Centre and Development Center
34
PERFORMANCE PLANNING AND REVIEW
35
GOALS OF PERFORMANCE APPRAISAL
1048698 Each objective should be SMART ndash specific measurable agreed realistic and time-limited
1048698 Each objective must be in an area over which the employee has control
1048698 Give each objective a deadline
1048698 A clear target allows you to measure whether the employee is making the progress you expect
1048698 Provide information to assist in the HR decisions like promotions transfers etc
36
PROCESS OF PERFORMANCE APPRAISAL
bull Establishing Performance Standards
bull Communicating the Standards
37
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
bull Broadly all methods of appraisals can be divided into two different categories
bull 1048698 Past Oriented Methodsbull 1048698 Future Oriented Methods
38
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Past Oriented Methods
1 Rating Scales Rating scales consists of several numerical scales representing job related performance criterions such as dependability initiative output attendance attitude etc Each scales ranges from excellent to poor The total numerical scores are computed and final conclusions are derived
Advantages Adaptability easy to use low cost every type of job can be
evaluated large number of employees covered no formal training required
Disadvantages Raterrsquos biases
2 Checklist Under this method checklist of statements of traits of employee in the
form of Yes or No based questions is prepared Here the rater only does the
reporting or checking and HR department does the actual evaluation
Advantages Economy ease of administration limited training required
standardization
Disadvantages Raters biases use of improper weighs by HR does not allow rater
to give relative ratings
39
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
3 Forced Choice Method The series of statements arranged in the blocks of two or more are given and the rater indicates which statement is true or false The rater is forced to make a choice HR department does actual assessment
Advantages Absence of personal biases because of forced choice
Disadvantages Statements may be wrongly framed
4 Forced Distribution Method Here employees are clustered around a high point on a rating scale Rater is compelled to distribute the employees on all points on the scale It is assumed that the performance is conformed to normal distribution
Advantages Eliminates biasness
Disadvantages Assumption of normal distribution unrealistic errors of central
tendency
40
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
5 Critical Incidents Method The approach is focused on certain critical behaviors
of employee that makes all the difference in the performance Supervisors as and
when they occur record such incidents
Advantages Evaluations are based on actual job behaviors ratings are supported
by descriptions feedback is easy reduces recency biases chances of subordinate
improvement are high
Disadvantages Negative incidents can be prioritized forgetting incidents overly
close supervision feedback may be too much and may appear to be punishment
6 Behaviorally Anchored Rating Scales Statements of effective and ineffective
behaviors determine the points They are said to be behaviorally anchored The
rater is supposed to say which behavior describes the employee performance
Advantages Helps overcome rating errors
Disadvantages Suffers from distortions inherent in most rating techniques
41
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
7 Field Review Method This is an appraisal done by someone outside employeesrsquo own department usually from corporate or HR department
Advantages Useful for managerial level promotions when comparable
information is needed
Disadvantages Outsider is generally not familiar with employees work
environment Observation of actual behaviors not possible
8 Performance Tests amp Observations This is based on the test of knowledge or skills The tests may be written or an actual presentation of skills Tests must be reliable and validated to be useful
Advantages Tests may be apt to measure potential more than actual performance
Disadvantages Tests may suffer if costs of test development or administration are high
42
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Future Oriented Methods
1 Management by Objectives It means management by objectives and the
performance is rated against the achievement of objectives stated by the
management MBO process
(a) Establish goals and desired outcomes for each subordinate
(b) Setting performance standards
(c) Comparison of actual goals with goals attained by the employee
(d) Establish new goals and new strategies for goals not achieved in previous
year
43
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Future Oriented Methods
2 Psychological Appraisals
These appraisals are more directed to assess employeersquos potential for future performance rather than the past one It is done in the form of in-depth interviews psychological tests and discussion with supervisors and review of other evaluations
It is more focused on employees emotional intellectual and motivational and other personal characteristics affecting his performance This approach is slow and costly and may be useful for bright young members who may have considerable potential However quality of these appraisals largely depend upon the skills of psychologists who perform the evaluation
44
1 Leniency amp Severity
2 Central Tendency
3 Halo Effect
4 Primacy amp Recency Effect
5 Spillover Effects
6 Status Effect
Problems of RatingRating Biases
45
PERFORMANCE COACHING
The performance coaching process involves five strategies
1 Creating a partnership role To make employees realize that both employees and manger are responsible for performance and build trust amongst them
2 Commitment Inspiring employees to be committed to the goals
3 Competency development Awareness towards developing skills and
competencies required to reach to organizational goals
4 Perseverance Developing lsquonever say diersquo attitude among organizational members
5 Shaping the environment Creating conditions for employee development
46
THE COACHING DISCUSSION
Kinlawrsquos Approach
Kinlaw suggests a three-stage approach to the coaching discussion as follows
1048698 Confronting or presenting
1048698 Using reactions to develop information
1048698 Resolving or resolution
47
THE COACHING DISCUSSION
bull Fourniesrsquo Approach
bull Step 1 Get the employeersquos agreement that a problem existsbull Step 2 Mutually discuss alternative solutions to the problembull Step 3 Mutually agree on actions to be taken to solve the problembull Step 4 Follow-up to measure resultsbull Step 5 Recognize any achievement when it occurs
48
MENTORING
bull Mentorship is a process where an experienced person provides help guidance support to nurture and develop a less experienced person referred to as a proteacutegeacute apprentice mentee or (person) It improves the self esteem of mentee and increases hisher chance for success
49
MENTORING - Kinds
1048698 New-hire mentorship
1048698 High-potential mentorship
1048698 Mentorship in Education
50
POTENTIAL APPRAISAL CAREER AND SUCCESSION
PLANNING
51
POTENTIAL APPRAISAL
Purpose of Potential Appraisal
Potential appraisal serves the following purposes
1048698 To advise employees about their overall career development and future prospects
1048698 Help the organisation to chalk out succession plans
1048698 Motivate the employees to further develop their skills and competencies
1048698 To identify the training needs
52
POTENTIAL APPRAISAL
Techniques of Potential Appraisal
1048698 Self-appraisals
1048698 Peer appraisals
1048698 Superior appraisals
1048698 MBO
1048698 Psychological and psychometric tests
1048698 Management games like role playing
1048698 Leadership exercises etc
53
CAREER PLANNING
Steps in Career Planning Process
Step One Self Assessment
Step Two Goal Setting
Step Three AcademicCareer Options
Step Four Plan of Action
Step Five Catch Hold of Opportunities
54
bull Succession Planning refers to the process of developing the second line for taking up a higher role in the organization
SUCCESSION PLANNING
55
HR MEASUREMENT AND AUDIT
bull Audit helps the organization have a clear understanding of the lacunae and better align the HR processes with Business goals
bull The audit itself is a diagnostic tool not a prescriptive instrument It helps in identifying what is missing or needs to improve It is most useful when an organization is ready to act on the findings and to evolve its HR function to play a greater strategic role
56
WHY CONDUCT AN HR AUDIT
1048698 It helps promote more professionalism and professional management
1048698 HR audit helps an organization to be aware of its present practices policies
and their adherence
1048698 Benchmarking to improve HR practices
1048698 The organization can benchmark its processes with best-in-class organizations
1048698 HR audit suggest improvement measures keeping the organizational strategic goals and vision in mind
57
THE HR AUDIT PROCESS
InterviewsQuestionnaires
The audit team interviews the following
1048698 Top Management (CEO Unit Heads)
1048698 Line Managers (eg Managers in production quality purchase and marketing)
1048698 HRD Staff
1048698 Workmen and others
Observation and Recording
Follow-up and Corrections done
58
HUMAN RESOURCE ACCOUNTING
bull The American Accounting Associationrsquos Committee on Human Resource Accounting (1973) has defined Human Resource Accounting as ldquothe process of identifying and measuring data about human resources and communicating this information to interested partiesrdquo
bull It is the measurement and reporting of the cost and value of people in organizational Resources
59
METHODS OF HUMAN RESOURCE ACCOUNTING
Methods of Valuing and Accounting of Human Resources
The methods to value and account for human resources can be classified into the following categories
1 Methods based on costs (which include costs incurred by the company to recruit hire train and develop human resources)
2 Methods based on economic value of human resources and the capitalisation of companyrsquos earnings
60
HUMAN RESOURCE ACCOUNTING
Methods based on Cost
Historical Cost Method
Under this method the cost of acquisition ie selection hiring training costs of employees are capitalised and written off over the expected useful life of the employees In case the personnel leave the company before the anticipated period of service then the unamortised portion of costs remaining in the companyrsquos books is written off against the profit and loss account in that year If the period of service exceeds the anticipated time then amortisation of costs is rescheduled
Replacement Cost Method
Under this method the human resources are valued at their replacement cost ie The monetary implications of replacing existing personnel
Standard Cost Method
Under this method standard costs of recruiting hiring training and developing per grade of employees are determined annually The total standard cost for all personnel of the company is the value of human resources
61
HUMAN RESOURCE ACCOUNTING
bull HR Accounting based on Value
bull Economic Value Method
bull Under this method the net present value of incremental cash flows attributed to human resources is taken as the asset value
62
HUMAN RESOURCE INFORMATION SYSTEMS(HRIS)
bull An information system may be automated or manual and involves collectingprocessing transmitting and disseminating data that represents user information
63
HRIS ndash APPLICATION AND UTILITIES
Personnel administration It will encompass information about each employee
such as name address personal details etc
1048698 Salary administration Generate personnel cost reports conduct lsquowhat if
analysisrsquo provide compensation history
1048698 Leave and absence recording Essentially being able to provide comprehensive
method of tracking absences late coming reports on excess leave availed leave
lapsed
1048698 Skill inventory Recording of acquired skills and monitor the skill database at the
employee and organisational level
1048698 Performance appraisal The system should record individual employee
performance appraisal data such as appraisal ratings due date of appraisal
training needs identified during the appraisal process
1048698 Recruitment Record recruitment cost lead time to fill a vacant position
recruitment methods applicant and resume management
1048698 Career planning HRIS System can provide succession plan reports identifying
employees earmarked for future position
64
HRIS ndash DISADVANTAGES
May be expensive ndash financing the technology
1048698 Thorough understanding of what constitutes quality information for the user
1048698 Computer cannot substitute human beings
HUMAN RESOURCE DEVELOPMENT SYSTEM
66
HRD
HRD play a very crucial role in organization Henery Ford once said ldquotake out my building take out my machines take out all capital but leave my men with me and I will become Henry Ford againrdquo HRD is considered as key to higher productivity better relations and greater profitability for any organization
According to Daftur
ldquoHRD is a system and process concerned with an organized series of learning activities within specified time limits designed to produce behavioral changes in the learner in such a way that it acquires desired level of competence for present or future rolerdquo
67
HRDORGANIZATION ALIGNMENT MODEL
TRAINING AND DEVELOPMENT
69
NEED FOR TRAINING AND DEVELOPMENT
bull Technological advances bull Organizational complexity bull Organizational tenure bull Human relations movement
70
THE TRAINING PROCESS
71
Needs Assessment
72
bull Lecturesbull Audio Visualsbull On-the-job Training (OJT)bull Programmed Instructionbull Computer Assisted Instruction (CAI)bull Simulation
Methods and Techniques of Training
73
Training Methods for Management Development
1048698 Seminars and Conferences
1048698 Case Study
1048698 Role Playing
1048698 Management Games
1048698 Sensitivity Training
74
bull Implementation of the Training Program
bull Evaluation of Training Program
75
Kirkpatrick Model for Evaluating Effectiveness of Training Programs
1 Reactions
2 Learning
3 Behaviors
Results or Return on Investment (ROI)
76
SPECIAL TOPICS IN TRAINING ANDDEVELOPMENT
bull Cross-cultural Training
bull Orientation Training
bull Team-training and Cross-training
bull Diversity Training
COMPENSATION AND REWARDS
78
COMPENSATION OVERVIEW
Compensation is the process of directly and indirectly rewarding employees on a current or deferred basis for their performance of assigned tasks It consists of
1048698 Direct Financial Compensation Wages salaries bonuses commissions
1048698 Indirect Financial Compensation All financial rewards not included in direct compensation (benefits)
1048698 Non-financial Compensation Satisfaction received from the job or from the psychological andor physical environment of the job
JOB EVALUATION TECHNIQUE
The general step-wise procedure for job evaluation is as under
1 Select the group of jobs
2 Study the job (job analysis)
3 Prepare job description ndash approval
4 Device an evaluation plan ndash common characteristicstraits
5 Establish a committee of raters and rateevaluate
6 Group or classify the jobs
7 Convert job grades to money value along with Wage survey
8 Obtain approval from Union and Management
9 Establish a suitable grievance procedure
COMPONENTS OF COMPENSATION SYSTEM
1 Basic WagesSalaries
2 Dearness Allowance
3 Bonus
4 Commissions
5 Mixed Plans
6 Piece Rate Wages
7 Sign on Bonuses
8 Profit Sharing Payments
9 Fringe Benefits
COMPENSATION EQUITY
1048698 External Equity Employees are paid comparably to those who perform similar jobs in other industries
1048698 Internal Equity Employees are paid according to relative value of their jobs within an organisation
1048698 Employee Equity Individuals performing similar jobs for the same firm are rewarded according to factors unique to the employee such as performance level or seniority
1048698 Team Equity More productive teams receive greater rewards than less productive groups
INTERNATIONAL COMPENSATION
Elements of Expatriate Compensation
Basic Pay Amount of money that an expatriate receives from home country Used for
Bonus calculation
Benefits
1048698 One third of compensation
1048698 Extra vacation special leaves air fares for their families for an annual visit home
emergency leaves
1048698 Housing
1048698 Utilities ndash air conditioner bottled water electricity telephone call expenses
1048698 Car ndash car expenses chauffeur hired vehicle
Helping hands servants gardeners security
1048698 Club subscription
1048698 Educational benefits
Allowances
1048698 COLA ndash cost of living between home country and foreign country inflation
1048698 Relocation allowances
1048698 Hardship allowances
1048698 Separation allowances
1048698 Clothing allowances ndash very cold climates
1048698 Home leave allowances
1048698 Spouse assistance allowances
REWARDS SYSTEM
Reward System as Followed by Organisations
1 Incentive and Rewards
2 Competency Related Pay
3 Skill Based Pay
4 Team Based Rewards
5 Profit Sharing
7 Employee Ownership
8 Statutory and Voluntary Benefits
FORMS OF RECOGNITION
Examples of Formal Recognition
1 Milestone Service Anniversary Awards (5101520 25 years of service)
2 Ideas Improvement amp Performance Awards
3 Service Awards
a) Teamworkleadership
b) Customer Service
c) Citizenship
d) Innovation
e) Attendance
4 Awards would include
a) PlaquesDesk trophies
b) Certificates
c) GiftsCertificates
d) Picture in the webpage
FORMS OF RECOGNITION
Examples of Informal Recognition
1 Team Building Retreats
2 Acknowledgement of DeptDivision goals achieved
3 Project Completion meals
4 Birthday cakes and cards
5 Picnics
6 Staff Appreciation Day
7 Holiday Parties
8 Dress-up Days
9 Corporate Merchandise
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-
14
Job Characteristics
Skill Variety The extent to which the work requires several different activities for successful completion
Task Identity
The extent to which the job includes a ldquowholerdquo identifiable unit of work that is carried out from start to finish and that results in a visible outcome
Task Significance The impact the job has on other people
Autonomy The extent of individual freedom and discretion in the work and its scheduling
Feedback The amount of information received about how well or how poorly one has performed
15
HUMAN RESOURCE PLANNING
16
OBJECTIVES OF HRP
1 to prevent overstaffing and understaffing
2 to ensure employee availability
3 to ensure that the organization is responsive to the environment
4 to provide direction to all HR activities and
5 to build line and staff partnership
17
bull Environmental scanning
bull Forecasting and analyzing demand for human resources
bull Forecasting and analyzing supply of human resources
bull Developing action plans to match human resource demand and supplyndash HR Supply = HR demandndash HR Supply lt HR demand (deficitshortage)ndash HR Supply gt HR demand (surplus)
PROCESS OF HRP
18
bull Qualitative Methods
ndash Estimation (Centralized ndash HR Decentralized ndash Line Mgrs
ndash Expert Opinions
(a) Delphi techniques
(b) Group brainstorming
(c) Nominal group technique
(d) Averaging
ndash Sales force estimate
TECHNIQUES OF HR DEMAND FORECASTING
19
bull Quantitative Methods
bull Trend analysis and projection
bull Simulation models (probabilities of future events to estimate future employment levels)
bull Workload analysis (Both the number of employees and the kind of employees required to achieve organizational goals are identified)
bull Markov analysis
TECHNIQUES OF HR DEMAND FORECASTING
20
ATTRACTING THE TALENT RECRUITMENT
SELECTION AND OUTSOURCING
21
Internal Sources of Recruitment
1 Transfers
2 Promotions
3 Upgrading and demotion
4 Retired and retrenched employees
5 Deceased employees and disabled employees
SOURCES OF RECRUITMENT
22
External Sources of Recruitment
bull Press advertisements bull Educational institutesbull Placement agencies bull Employment exchanges bull Labour contractorsbull Unsolicited applicants bull Employee referralsrecommendations
SOURCES OF RECRUITMENT
23
THE SELECTION PROCESS
1 Pre screening
2 Initial interview
3 Reference and other checks
4 Application forms or lsquoblanksrsquo
5 Selection testing
6 Comprehensive interview
7 Job offer
8 Medical examination
24
Interviews
I Unstructured Interview
II Situational Interview
III Behavior Description Interviews
IV Comprehensive Structured Interviews
V Structured Behavioral Interview
25
PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
1048698 Unclear role of interviewer
1048698 Unprepared interviewer
1048698 Halo effect
1048698 Snap judgement
1048698 Personal biases
1048698 Ineffective communication
1048698 Contrast effect
1048698 Reflection effect
1048698 Satisfying onersquos own needs
26
bull INDUCTION
bull OUTSOURCING
27
COMPETENCY MAPPING AND ASSESSMENT CENTRES
28
Competencies
competencies are typically defined as a combination of knowledge skills abilities and other individual characteristics that can be reliably measured and that can be shown to differentiate performance
29
VARIOUS COMPETENCY MODELS
1048698Job Competencies Assessment Model interviews and
observations of outstanding and average performers
1048698Modified Job Competence Assessment Model a written account
of critical incidents (to reduce costs)
1048698Generic Model Overlay Method off-the-shelf
1048698Customized Generic Model Method tentative list of
competencies that are identified internally
1048698Flexible Job Competency Model Method under different conditions in the future
1048698Systems Method behaviors that may be important in the
future
30
HISTORY OF ASSESSMENT CENTRES
bull 1942
bull exceptional smartness
bull War Office Selection Boards
31
MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
Types of Psychological Tests
1048698 IQAchievement tests
1048698 Situational tests Situations are given and an individualrsquos behaviorresponse is observed
1048698 Psychometric tests
1048698 Personality Questionnaire
1048698 Interest Questionnaire
1048698 Values Questionnaire
32
MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
bull The Leaderless Group Discussion (LGD)bull In-basket Exercisebull Group Exercisesbull Behavioral Event Interviews
33
Difference between Assessment Centre and Development Center
34
PERFORMANCE PLANNING AND REVIEW
35
GOALS OF PERFORMANCE APPRAISAL
1048698 Each objective should be SMART ndash specific measurable agreed realistic and time-limited
1048698 Each objective must be in an area over which the employee has control
1048698 Give each objective a deadline
1048698 A clear target allows you to measure whether the employee is making the progress you expect
1048698 Provide information to assist in the HR decisions like promotions transfers etc
36
PROCESS OF PERFORMANCE APPRAISAL
bull Establishing Performance Standards
bull Communicating the Standards
37
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
bull Broadly all methods of appraisals can be divided into two different categories
bull 1048698 Past Oriented Methodsbull 1048698 Future Oriented Methods
38
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Past Oriented Methods
1 Rating Scales Rating scales consists of several numerical scales representing job related performance criterions such as dependability initiative output attendance attitude etc Each scales ranges from excellent to poor The total numerical scores are computed and final conclusions are derived
Advantages Adaptability easy to use low cost every type of job can be
evaluated large number of employees covered no formal training required
Disadvantages Raterrsquos biases
2 Checklist Under this method checklist of statements of traits of employee in the
form of Yes or No based questions is prepared Here the rater only does the
reporting or checking and HR department does the actual evaluation
Advantages Economy ease of administration limited training required
standardization
Disadvantages Raters biases use of improper weighs by HR does not allow rater
to give relative ratings
39
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
3 Forced Choice Method The series of statements arranged in the blocks of two or more are given and the rater indicates which statement is true or false The rater is forced to make a choice HR department does actual assessment
Advantages Absence of personal biases because of forced choice
Disadvantages Statements may be wrongly framed
4 Forced Distribution Method Here employees are clustered around a high point on a rating scale Rater is compelled to distribute the employees on all points on the scale It is assumed that the performance is conformed to normal distribution
Advantages Eliminates biasness
Disadvantages Assumption of normal distribution unrealistic errors of central
tendency
40
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
5 Critical Incidents Method The approach is focused on certain critical behaviors
of employee that makes all the difference in the performance Supervisors as and
when they occur record such incidents
Advantages Evaluations are based on actual job behaviors ratings are supported
by descriptions feedback is easy reduces recency biases chances of subordinate
improvement are high
Disadvantages Negative incidents can be prioritized forgetting incidents overly
close supervision feedback may be too much and may appear to be punishment
6 Behaviorally Anchored Rating Scales Statements of effective and ineffective
behaviors determine the points They are said to be behaviorally anchored The
rater is supposed to say which behavior describes the employee performance
Advantages Helps overcome rating errors
Disadvantages Suffers from distortions inherent in most rating techniques
41
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
7 Field Review Method This is an appraisal done by someone outside employeesrsquo own department usually from corporate or HR department
Advantages Useful for managerial level promotions when comparable
information is needed
Disadvantages Outsider is generally not familiar with employees work
environment Observation of actual behaviors not possible
8 Performance Tests amp Observations This is based on the test of knowledge or skills The tests may be written or an actual presentation of skills Tests must be reliable and validated to be useful
Advantages Tests may be apt to measure potential more than actual performance
Disadvantages Tests may suffer if costs of test development or administration are high
42
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Future Oriented Methods
1 Management by Objectives It means management by objectives and the
performance is rated against the achievement of objectives stated by the
management MBO process
(a) Establish goals and desired outcomes for each subordinate
(b) Setting performance standards
(c) Comparison of actual goals with goals attained by the employee
(d) Establish new goals and new strategies for goals not achieved in previous
year
43
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Future Oriented Methods
2 Psychological Appraisals
These appraisals are more directed to assess employeersquos potential for future performance rather than the past one It is done in the form of in-depth interviews psychological tests and discussion with supervisors and review of other evaluations
It is more focused on employees emotional intellectual and motivational and other personal characteristics affecting his performance This approach is slow and costly and may be useful for bright young members who may have considerable potential However quality of these appraisals largely depend upon the skills of psychologists who perform the evaluation
44
1 Leniency amp Severity
2 Central Tendency
3 Halo Effect
4 Primacy amp Recency Effect
5 Spillover Effects
6 Status Effect
Problems of RatingRating Biases
45
PERFORMANCE COACHING
The performance coaching process involves five strategies
1 Creating a partnership role To make employees realize that both employees and manger are responsible for performance and build trust amongst them
2 Commitment Inspiring employees to be committed to the goals
3 Competency development Awareness towards developing skills and
competencies required to reach to organizational goals
4 Perseverance Developing lsquonever say diersquo attitude among organizational members
5 Shaping the environment Creating conditions for employee development
46
THE COACHING DISCUSSION
Kinlawrsquos Approach
Kinlaw suggests a three-stage approach to the coaching discussion as follows
1048698 Confronting or presenting
1048698 Using reactions to develop information
1048698 Resolving or resolution
47
THE COACHING DISCUSSION
bull Fourniesrsquo Approach
bull Step 1 Get the employeersquos agreement that a problem existsbull Step 2 Mutually discuss alternative solutions to the problembull Step 3 Mutually agree on actions to be taken to solve the problembull Step 4 Follow-up to measure resultsbull Step 5 Recognize any achievement when it occurs
48
MENTORING
bull Mentorship is a process where an experienced person provides help guidance support to nurture and develop a less experienced person referred to as a proteacutegeacute apprentice mentee or (person) It improves the self esteem of mentee and increases hisher chance for success
49
MENTORING - Kinds
1048698 New-hire mentorship
1048698 High-potential mentorship
1048698 Mentorship in Education
50
POTENTIAL APPRAISAL CAREER AND SUCCESSION
PLANNING
51
POTENTIAL APPRAISAL
Purpose of Potential Appraisal
Potential appraisal serves the following purposes
1048698 To advise employees about their overall career development and future prospects
1048698 Help the organisation to chalk out succession plans
1048698 Motivate the employees to further develop their skills and competencies
1048698 To identify the training needs
52
POTENTIAL APPRAISAL
Techniques of Potential Appraisal
1048698 Self-appraisals
1048698 Peer appraisals
1048698 Superior appraisals
1048698 MBO
1048698 Psychological and psychometric tests
1048698 Management games like role playing
1048698 Leadership exercises etc
53
CAREER PLANNING
Steps in Career Planning Process
Step One Self Assessment
Step Two Goal Setting
Step Three AcademicCareer Options
Step Four Plan of Action
Step Five Catch Hold of Opportunities
54
bull Succession Planning refers to the process of developing the second line for taking up a higher role in the organization
SUCCESSION PLANNING
55
HR MEASUREMENT AND AUDIT
bull Audit helps the organization have a clear understanding of the lacunae and better align the HR processes with Business goals
bull The audit itself is a diagnostic tool not a prescriptive instrument It helps in identifying what is missing or needs to improve It is most useful when an organization is ready to act on the findings and to evolve its HR function to play a greater strategic role
56
WHY CONDUCT AN HR AUDIT
1048698 It helps promote more professionalism and professional management
1048698 HR audit helps an organization to be aware of its present practices policies
and their adherence
1048698 Benchmarking to improve HR practices
1048698 The organization can benchmark its processes with best-in-class organizations
1048698 HR audit suggest improvement measures keeping the organizational strategic goals and vision in mind
57
THE HR AUDIT PROCESS
InterviewsQuestionnaires
The audit team interviews the following
1048698 Top Management (CEO Unit Heads)
1048698 Line Managers (eg Managers in production quality purchase and marketing)
1048698 HRD Staff
1048698 Workmen and others
Observation and Recording
Follow-up and Corrections done
58
HUMAN RESOURCE ACCOUNTING
bull The American Accounting Associationrsquos Committee on Human Resource Accounting (1973) has defined Human Resource Accounting as ldquothe process of identifying and measuring data about human resources and communicating this information to interested partiesrdquo
bull It is the measurement and reporting of the cost and value of people in organizational Resources
59
METHODS OF HUMAN RESOURCE ACCOUNTING
Methods of Valuing and Accounting of Human Resources
The methods to value and account for human resources can be classified into the following categories
1 Methods based on costs (which include costs incurred by the company to recruit hire train and develop human resources)
2 Methods based on economic value of human resources and the capitalisation of companyrsquos earnings
60
HUMAN RESOURCE ACCOUNTING
Methods based on Cost
Historical Cost Method
Under this method the cost of acquisition ie selection hiring training costs of employees are capitalised and written off over the expected useful life of the employees In case the personnel leave the company before the anticipated period of service then the unamortised portion of costs remaining in the companyrsquos books is written off against the profit and loss account in that year If the period of service exceeds the anticipated time then amortisation of costs is rescheduled
Replacement Cost Method
Under this method the human resources are valued at their replacement cost ie The monetary implications of replacing existing personnel
Standard Cost Method
Under this method standard costs of recruiting hiring training and developing per grade of employees are determined annually The total standard cost for all personnel of the company is the value of human resources
61
HUMAN RESOURCE ACCOUNTING
bull HR Accounting based on Value
bull Economic Value Method
bull Under this method the net present value of incremental cash flows attributed to human resources is taken as the asset value
62
HUMAN RESOURCE INFORMATION SYSTEMS(HRIS)
bull An information system may be automated or manual and involves collectingprocessing transmitting and disseminating data that represents user information
63
HRIS ndash APPLICATION AND UTILITIES
Personnel administration It will encompass information about each employee
such as name address personal details etc
1048698 Salary administration Generate personnel cost reports conduct lsquowhat if
analysisrsquo provide compensation history
1048698 Leave and absence recording Essentially being able to provide comprehensive
method of tracking absences late coming reports on excess leave availed leave
lapsed
1048698 Skill inventory Recording of acquired skills and monitor the skill database at the
employee and organisational level
1048698 Performance appraisal The system should record individual employee
performance appraisal data such as appraisal ratings due date of appraisal
training needs identified during the appraisal process
1048698 Recruitment Record recruitment cost lead time to fill a vacant position
recruitment methods applicant and resume management
1048698 Career planning HRIS System can provide succession plan reports identifying
employees earmarked for future position
64
HRIS ndash DISADVANTAGES
May be expensive ndash financing the technology
1048698 Thorough understanding of what constitutes quality information for the user
1048698 Computer cannot substitute human beings
HUMAN RESOURCE DEVELOPMENT SYSTEM
66
HRD
HRD play a very crucial role in organization Henery Ford once said ldquotake out my building take out my machines take out all capital but leave my men with me and I will become Henry Ford againrdquo HRD is considered as key to higher productivity better relations and greater profitability for any organization
According to Daftur
ldquoHRD is a system and process concerned with an organized series of learning activities within specified time limits designed to produce behavioral changes in the learner in such a way that it acquires desired level of competence for present or future rolerdquo
67
HRDORGANIZATION ALIGNMENT MODEL
TRAINING AND DEVELOPMENT
69
NEED FOR TRAINING AND DEVELOPMENT
bull Technological advances bull Organizational complexity bull Organizational tenure bull Human relations movement
70
THE TRAINING PROCESS
71
Needs Assessment
72
bull Lecturesbull Audio Visualsbull On-the-job Training (OJT)bull Programmed Instructionbull Computer Assisted Instruction (CAI)bull Simulation
Methods and Techniques of Training
73
Training Methods for Management Development
1048698 Seminars and Conferences
1048698 Case Study
1048698 Role Playing
1048698 Management Games
1048698 Sensitivity Training
74
bull Implementation of the Training Program
bull Evaluation of Training Program
75
Kirkpatrick Model for Evaluating Effectiveness of Training Programs
1 Reactions
2 Learning
3 Behaviors
Results or Return on Investment (ROI)
76
SPECIAL TOPICS IN TRAINING ANDDEVELOPMENT
bull Cross-cultural Training
bull Orientation Training
bull Team-training and Cross-training
bull Diversity Training
COMPENSATION AND REWARDS
78
COMPENSATION OVERVIEW
Compensation is the process of directly and indirectly rewarding employees on a current or deferred basis for their performance of assigned tasks It consists of
1048698 Direct Financial Compensation Wages salaries bonuses commissions
1048698 Indirect Financial Compensation All financial rewards not included in direct compensation (benefits)
1048698 Non-financial Compensation Satisfaction received from the job or from the psychological andor physical environment of the job
JOB EVALUATION TECHNIQUE
The general step-wise procedure for job evaluation is as under
1 Select the group of jobs
2 Study the job (job analysis)
3 Prepare job description ndash approval
4 Device an evaluation plan ndash common characteristicstraits
5 Establish a committee of raters and rateevaluate
6 Group or classify the jobs
7 Convert job grades to money value along with Wage survey
8 Obtain approval from Union and Management
9 Establish a suitable grievance procedure
COMPONENTS OF COMPENSATION SYSTEM
1 Basic WagesSalaries
2 Dearness Allowance
3 Bonus
4 Commissions
5 Mixed Plans
6 Piece Rate Wages
7 Sign on Bonuses
8 Profit Sharing Payments
9 Fringe Benefits
COMPENSATION EQUITY
1048698 External Equity Employees are paid comparably to those who perform similar jobs in other industries
1048698 Internal Equity Employees are paid according to relative value of their jobs within an organisation
1048698 Employee Equity Individuals performing similar jobs for the same firm are rewarded according to factors unique to the employee such as performance level or seniority
1048698 Team Equity More productive teams receive greater rewards than less productive groups
INTERNATIONAL COMPENSATION
Elements of Expatriate Compensation
Basic Pay Amount of money that an expatriate receives from home country Used for
Bonus calculation
Benefits
1048698 One third of compensation
1048698 Extra vacation special leaves air fares for their families for an annual visit home
emergency leaves
1048698 Housing
1048698 Utilities ndash air conditioner bottled water electricity telephone call expenses
1048698 Car ndash car expenses chauffeur hired vehicle
Helping hands servants gardeners security
1048698 Club subscription
1048698 Educational benefits
Allowances
1048698 COLA ndash cost of living between home country and foreign country inflation
1048698 Relocation allowances
1048698 Hardship allowances
1048698 Separation allowances
1048698 Clothing allowances ndash very cold climates
1048698 Home leave allowances
1048698 Spouse assistance allowances
REWARDS SYSTEM
Reward System as Followed by Organisations
1 Incentive and Rewards
2 Competency Related Pay
3 Skill Based Pay
4 Team Based Rewards
5 Profit Sharing
7 Employee Ownership
8 Statutory and Voluntary Benefits
FORMS OF RECOGNITION
Examples of Formal Recognition
1 Milestone Service Anniversary Awards (5101520 25 years of service)
2 Ideas Improvement amp Performance Awards
3 Service Awards
a) Teamworkleadership
b) Customer Service
c) Citizenship
d) Innovation
e) Attendance
4 Awards would include
a) PlaquesDesk trophies
b) Certificates
c) GiftsCertificates
d) Picture in the webpage
FORMS OF RECOGNITION
Examples of Informal Recognition
1 Team Building Retreats
2 Acknowledgement of DeptDivision goals achieved
3 Project Completion meals
4 Birthday cakes and cards
5 Picnics
6 Staff Appreciation Day
7 Holiday Parties
8 Dress-up Days
9 Corporate Merchandise
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-
15
HUMAN RESOURCE PLANNING
16
OBJECTIVES OF HRP
1 to prevent overstaffing and understaffing
2 to ensure employee availability
3 to ensure that the organization is responsive to the environment
4 to provide direction to all HR activities and
5 to build line and staff partnership
17
bull Environmental scanning
bull Forecasting and analyzing demand for human resources
bull Forecasting and analyzing supply of human resources
bull Developing action plans to match human resource demand and supplyndash HR Supply = HR demandndash HR Supply lt HR demand (deficitshortage)ndash HR Supply gt HR demand (surplus)
PROCESS OF HRP
18
bull Qualitative Methods
ndash Estimation (Centralized ndash HR Decentralized ndash Line Mgrs
ndash Expert Opinions
(a) Delphi techniques
(b) Group brainstorming
(c) Nominal group technique
(d) Averaging
ndash Sales force estimate
TECHNIQUES OF HR DEMAND FORECASTING
19
bull Quantitative Methods
bull Trend analysis and projection
bull Simulation models (probabilities of future events to estimate future employment levels)
bull Workload analysis (Both the number of employees and the kind of employees required to achieve organizational goals are identified)
bull Markov analysis
TECHNIQUES OF HR DEMAND FORECASTING
20
ATTRACTING THE TALENT RECRUITMENT
SELECTION AND OUTSOURCING
21
Internal Sources of Recruitment
1 Transfers
2 Promotions
3 Upgrading and demotion
4 Retired and retrenched employees
5 Deceased employees and disabled employees
SOURCES OF RECRUITMENT
22
External Sources of Recruitment
bull Press advertisements bull Educational institutesbull Placement agencies bull Employment exchanges bull Labour contractorsbull Unsolicited applicants bull Employee referralsrecommendations
SOURCES OF RECRUITMENT
23
THE SELECTION PROCESS
1 Pre screening
2 Initial interview
3 Reference and other checks
4 Application forms or lsquoblanksrsquo
5 Selection testing
6 Comprehensive interview
7 Job offer
8 Medical examination
24
Interviews
I Unstructured Interview
II Situational Interview
III Behavior Description Interviews
IV Comprehensive Structured Interviews
V Structured Behavioral Interview
25
PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
1048698 Unclear role of interviewer
1048698 Unprepared interviewer
1048698 Halo effect
1048698 Snap judgement
1048698 Personal biases
1048698 Ineffective communication
1048698 Contrast effect
1048698 Reflection effect
1048698 Satisfying onersquos own needs
26
bull INDUCTION
bull OUTSOURCING
27
COMPETENCY MAPPING AND ASSESSMENT CENTRES
28
Competencies
competencies are typically defined as a combination of knowledge skills abilities and other individual characteristics that can be reliably measured and that can be shown to differentiate performance
29
VARIOUS COMPETENCY MODELS
1048698Job Competencies Assessment Model interviews and
observations of outstanding and average performers
1048698Modified Job Competence Assessment Model a written account
of critical incidents (to reduce costs)
1048698Generic Model Overlay Method off-the-shelf
1048698Customized Generic Model Method tentative list of
competencies that are identified internally
1048698Flexible Job Competency Model Method under different conditions in the future
1048698Systems Method behaviors that may be important in the
future
30
HISTORY OF ASSESSMENT CENTRES
bull 1942
bull exceptional smartness
bull War Office Selection Boards
31
MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
Types of Psychological Tests
1048698 IQAchievement tests
1048698 Situational tests Situations are given and an individualrsquos behaviorresponse is observed
1048698 Psychometric tests
1048698 Personality Questionnaire
1048698 Interest Questionnaire
1048698 Values Questionnaire
32
MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
bull The Leaderless Group Discussion (LGD)bull In-basket Exercisebull Group Exercisesbull Behavioral Event Interviews
33
Difference between Assessment Centre and Development Center
34
PERFORMANCE PLANNING AND REVIEW
35
GOALS OF PERFORMANCE APPRAISAL
1048698 Each objective should be SMART ndash specific measurable agreed realistic and time-limited
1048698 Each objective must be in an area over which the employee has control
1048698 Give each objective a deadline
1048698 A clear target allows you to measure whether the employee is making the progress you expect
1048698 Provide information to assist in the HR decisions like promotions transfers etc
36
PROCESS OF PERFORMANCE APPRAISAL
bull Establishing Performance Standards
bull Communicating the Standards
37
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
bull Broadly all methods of appraisals can be divided into two different categories
bull 1048698 Past Oriented Methodsbull 1048698 Future Oriented Methods
38
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Past Oriented Methods
1 Rating Scales Rating scales consists of several numerical scales representing job related performance criterions such as dependability initiative output attendance attitude etc Each scales ranges from excellent to poor The total numerical scores are computed and final conclusions are derived
Advantages Adaptability easy to use low cost every type of job can be
evaluated large number of employees covered no formal training required
Disadvantages Raterrsquos biases
2 Checklist Under this method checklist of statements of traits of employee in the
form of Yes or No based questions is prepared Here the rater only does the
reporting or checking and HR department does the actual evaluation
Advantages Economy ease of administration limited training required
standardization
Disadvantages Raters biases use of improper weighs by HR does not allow rater
to give relative ratings
39
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
3 Forced Choice Method The series of statements arranged in the blocks of two or more are given and the rater indicates which statement is true or false The rater is forced to make a choice HR department does actual assessment
Advantages Absence of personal biases because of forced choice
Disadvantages Statements may be wrongly framed
4 Forced Distribution Method Here employees are clustered around a high point on a rating scale Rater is compelled to distribute the employees on all points on the scale It is assumed that the performance is conformed to normal distribution
Advantages Eliminates biasness
Disadvantages Assumption of normal distribution unrealistic errors of central
tendency
40
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
5 Critical Incidents Method The approach is focused on certain critical behaviors
of employee that makes all the difference in the performance Supervisors as and
when they occur record such incidents
Advantages Evaluations are based on actual job behaviors ratings are supported
by descriptions feedback is easy reduces recency biases chances of subordinate
improvement are high
Disadvantages Negative incidents can be prioritized forgetting incidents overly
close supervision feedback may be too much and may appear to be punishment
6 Behaviorally Anchored Rating Scales Statements of effective and ineffective
behaviors determine the points They are said to be behaviorally anchored The
rater is supposed to say which behavior describes the employee performance
Advantages Helps overcome rating errors
Disadvantages Suffers from distortions inherent in most rating techniques
41
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
7 Field Review Method This is an appraisal done by someone outside employeesrsquo own department usually from corporate or HR department
Advantages Useful for managerial level promotions when comparable
information is needed
Disadvantages Outsider is generally not familiar with employees work
environment Observation of actual behaviors not possible
8 Performance Tests amp Observations This is based on the test of knowledge or skills The tests may be written or an actual presentation of skills Tests must be reliable and validated to be useful
Advantages Tests may be apt to measure potential more than actual performance
Disadvantages Tests may suffer if costs of test development or administration are high
42
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Future Oriented Methods
1 Management by Objectives It means management by objectives and the
performance is rated against the achievement of objectives stated by the
management MBO process
(a) Establish goals and desired outcomes for each subordinate
(b) Setting performance standards
(c) Comparison of actual goals with goals attained by the employee
(d) Establish new goals and new strategies for goals not achieved in previous
year
43
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Future Oriented Methods
2 Psychological Appraisals
These appraisals are more directed to assess employeersquos potential for future performance rather than the past one It is done in the form of in-depth interviews psychological tests and discussion with supervisors and review of other evaluations
It is more focused on employees emotional intellectual and motivational and other personal characteristics affecting his performance This approach is slow and costly and may be useful for bright young members who may have considerable potential However quality of these appraisals largely depend upon the skills of psychologists who perform the evaluation
44
1 Leniency amp Severity
2 Central Tendency
3 Halo Effect
4 Primacy amp Recency Effect
5 Spillover Effects
6 Status Effect
Problems of RatingRating Biases
45
PERFORMANCE COACHING
The performance coaching process involves five strategies
1 Creating a partnership role To make employees realize that both employees and manger are responsible for performance and build trust amongst them
2 Commitment Inspiring employees to be committed to the goals
3 Competency development Awareness towards developing skills and
competencies required to reach to organizational goals
4 Perseverance Developing lsquonever say diersquo attitude among organizational members
5 Shaping the environment Creating conditions for employee development
46
THE COACHING DISCUSSION
Kinlawrsquos Approach
Kinlaw suggests a three-stage approach to the coaching discussion as follows
1048698 Confronting or presenting
1048698 Using reactions to develop information
1048698 Resolving or resolution
47
THE COACHING DISCUSSION
bull Fourniesrsquo Approach
bull Step 1 Get the employeersquos agreement that a problem existsbull Step 2 Mutually discuss alternative solutions to the problembull Step 3 Mutually agree on actions to be taken to solve the problembull Step 4 Follow-up to measure resultsbull Step 5 Recognize any achievement when it occurs
48
MENTORING
bull Mentorship is a process where an experienced person provides help guidance support to nurture and develop a less experienced person referred to as a proteacutegeacute apprentice mentee or (person) It improves the self esteem of mentee and increases hisher chance for success
49
MENTORING - Kinds
1048698 New-hire mentorship
1048698 High-potential mentorship
1048698 Mentorship in Education
50
POTENTIAL APPRAISAL CAREER AND SUCCESSION
PLANNING
51
POTENTIAL APPRAISAL
Purpose of Potential Appraisal
Potential appraisal serves the following purposes
1048698 To advise employees about their overall career development and future prospects
1048698 Help the organisation to chalk out succession plans
1048698 Motivate the employees to further develop their skills and competencies
1048698 To identify the training needs
52
POTENTIAL APPRAISAL
Techniques of Potential Appraisal
1048698 Self-appraisals
1048698 Peer appraisals
1048698 Superior appraisals
1048698 MBO
1048698 Psychological and psychometric tests
1048698 Management games like role playing
1048698 Leadership exercises etc
53
CAREER PLANNING
Steps in Career Planning Process
Step One Self Assessment
Step Two Goal Setting
Step Three AcademicCareer Options
Step Four Plan of Action
Step Five Catch Hold of Opportunities
54
bull Succession Planning refers to the process of developing the second line for taking up a higher role in the organization
SUCCESSION PLANNING
55
HR MEASUREMENT AND AUDIT
bull Audit helps the organization have a clear understanding of the lacunae and better align the HR processes with Business goals
bull The audit itself is a diagnostic tool not a prescriptive instrument It helps in identifying what is missing or needs to improve It is most useful when an organization is ready to act on the findings and to evolve its HR function to play a greater strategic role
56
WHY CONDUCT AN HR AUDIT
1048698 It helps promote more professionalism and professional management
1048698 HR audit helps an organization to be aware of its present practices policies
and their adherence
1048698 Benchmarking to improve HR practices
1048698 The organization can benchmark its processes with best-in-class organizations
1048698 HR audit suggest improvement measures keeping the organizational strategic goals and vision in mind
57
THE HR AUDIT PROCESS
InterviewsQuestionnaires
The audit team interviews the following
1048698 Top Management (CEO Unit Heads)
1048698 Line Managers (eg Managers in production quality purchase and marketing)
1048698 HRD Staff
1048698 Workmen and others
Observation and Recording
Follow-up and Corrections done
58
HUMAN RESOURCE ACCOUNTING
bull The American Accounting Associationrsquos Committee on Human Resource Accounting (1973) has defined Human Resource Accounting as ldquothe process of identifying and measuring data about human resources and communicating this information to interested partiesrdquo
bull It is the measurement and reporting of the cost and value of people in organizational Resources
59
METHODS OF HUMAN RESOURCE ACCOUNTING
Methods of Valuing and Accounting of Human Resources
The methods to value and account for human resources can be classified into the following categories
1 Methods based on costs (which include costs incurred by the company to recruit hire train and develop human resources)
2 Methods based on economic value of human resources and the capitalisation of companyrsquos earnings
60
HUMAN RESOURCE ACCOUNTING
Methods based on Cost
Historical Cost Method
Under this method the cost of acquisition ie selection hiring training costs of employees are capitalised and written off over the expected useful life of the employees In case the personnel leave the company before the anticipated period of service then the unamortised portion of costs remaining in the companyrsquos books is written off against the profit and loss account in that year If the period of service exceeds the anticipated time then amortisation of costs is rescheduled
Replacement Cost Method
Under this method the human resources are valued at their replacement cost ie The monetary implications of replacing existing personnel
Standard Cost Method
Under this method standard costs of recruiting hiring training and developing per grade of employees are determined annually The total standard cost for all personnel of the company is the value of human resources
61
HUMAN RESOURCE ACCOUNTING
bull HR Accounting based on Value
bull Economic Value Method
bull Under this method the net present value of incremental cash flows attributed to human resources is taken as the asset value
62
HUMAN RESOURCE INFORMATION SYSTEMS(HRIS)
bull An information system may be automated or manual and involves collectingprocessing transmitting and disseminating data that represents user information
63
HRIS ndash APPLICATION AND UTILITIES
Personnel administration It will encompass information about each employee
such as name address personal details etc
1048698 Salary administration Generate personnel cost reports conduct lsquowhat if
analysisrsquo provide compensation history
1048698 Leave and absence recording Essentially being able to provide comprehensive
method of tracking absences late coming reports on excess leave availed leave
lapsed
1048698 Skill inventory Recording of acquired skills and monitor the skill database at the
employee and organisational level
1048698 Performance appraisal The system should record individual employee
performance appraisal data such as appraisal ratings due date of appraisal
training needs identified during the appraisal process
1048698 Recruitment Record recruitment cost lead time to fill a vacant position
recruitment methods applicant and resume management
1048698 Career planning HRIS System can provide succession plan reports identifying
employees earmarked for future position
64
HRIS ndash DISADVANTAGES
May be expensive ndash financing the technology
1048698 Thorough understanding of what constitutes quality information for the user
1048698 Computer cannot substitute human beings
HUMAN RESOURCE DEVELOPMENT SYSTEM
66
HRD
HRD play a very crucial role in organization Henery Ford once said ldquotake out my building take out my machines take out all capital but leave my men with me and I will become Henry Ford againrdquo HRD is considered as key to higher productivity better relations and greater profitability for any organization
According to Daftur
ldquoHRD is a system and process concerned with an organized series of learning activities within specified time limits designed to produce behavioral changes in the learner in such a way that it acquires desired level of competence for present or future rolerdquo
67
HRDORGANIZATION ALIGNMENT MODEL
TRAINING AND DEVELOPMENT
69
NEED FOR TRAINING AND DEVELOPMENT
bull Technological advances bull Organizational complexity bull Organizational tenure bull Human relations movement
70
THE TRAINING PROCESS
71
Needs Assessment
72
bull Lecturesbull Audio Visualsbull On-the-job Training (OJT)bull Programmed Instructionbull Computer Assisted Instruction (CAI)bull Simulation
Methods and Techniques of Training
73
Training Methods for Management Development
1048698 Seminars and Conferences
1048698 Case Study
1048698 Role Playing
1048698 Management Games
1048698 Sensitivity Training
74
bull Implementation of the Training Program
bull Evaluation of Training Program
75
Kirkpatrick Model for Evaluating Effectiveness of Training Programs
1 Reactions
2 Learning
3 Behaviors
Results or Return on Investment (ROI)
76
SPECIAL TOPICS IN TRAINING ANDDEVELOPMENT
bull Cross-cultural Training
bull Orientation Training
bull Team-training and Cross-training
bull Diversity Training
COMPENSATION AND REWARDS
78
COMPENSATION OVERVIEW
Compensation is the process of directly and indirectly rewarding employees on a current or deferred basis for their performance of assigned tasks It consists of
1048698 Direct Financial Compensation Wages salaries bonuses commissions
1048698 Indirect Financial Compensation All financial rewards not included in direct compensation (benefits)
1048698 Non-financial Compensation Satisfaction received from the job or from the psychological andor physical environment of the job
JOB EVALUATION TECHNIQUE
The general step-wise procedure for job evaluation is as under
1 Select the group of jobs
2 Study the job (job analysis)
3 Prepare job description ndash approval
4 Device an evaluation plan ndash common characteristicstraits
5 Establish a committee of raters and rateevaluate
6 Group or classify the jobs
7 Convert job grades to money value along with Wage survey
8 Obtain approval from Union and Management
9 Establish a suitable grievance procedure
COMPONENTS OF COMPENSATION SYSTEM
1 Basic WagesSalaries
2 Dearness Allowance
3 Bonus
4 Commissions
5 Mixed Plans
6 Piece Rate Wages
7 Sign on Bonuses
8 Profit Sharing Payments
9 Fringe Benefits
COMPENSATION EQUITY
1048698 External Equity Employees are paid comparably to those who perform similar jobs in other industries
1048698 Internal Equity Employees are paid according to relative value of their jobs within an organisation
1048698 Employee Equity Individuals performing similar jobs for the same firm are rewarded according to factors unique to the employee such as performance level or seniority
1048698 Team Equity More productive teams receive greater rewards than less productive groups
INTERNATIONAL COMPENSATION
Elements of Expatriate Compensation
Basic Pay Amount of money that an expatriate receives from home country Used for
Bonus calculation
Benefits
1048698 One third of compensation
1048698 Extra vacation special leaves air fares for their families for an annual visit home
emergency leaves
1048698 Housing
1048698 Utilities ndash air conditioner bottled water electricity telephone call expenses
1048698 Car ndash car expenses chauffeur hired vehicle
Helping hands servants gardeners security
1048698 Club subscription
1048698 Educational benefits
Allowances
1048698 COLA ndash cost of living between home country and foreign country inflation
1048698 Relocation allowances
1048698 Hardship allowances
1048698 Separation allowances
1048698 Clothing allowances ndash very cold climates
1048698 Home leave allowances
1048698 Spouse assistance allowances
REWARDS SYSTEM
Reward System as Followed by Organisations
1 Incentive and Rewards
2 Competency Related Pay
3 Skill Based Pay
4 Team Based Rewards
5 Profit Sharing
7 Employee Ownership
8 Statutory and Voluntary Benefits
FORMS OF RECOGNITION
Examples of Formal Recognition
1 Milestone Service Anniversary Awards (5101520 25 years of service)
2 Ideas Improvement amp Performance Awards
3 Service Awards
a) Teamworkleadership
b) Customer Service
c) Citizenship
d) Innovation
e) Attendance
4 Awards would include
a) PlaquesDesk trophies
b) Certificates
c) GiftsCertificates
d) Picture in the webpage
FORMS OF RECOGNITION
Examples of Informal Recognition
1 Team Building Retreats
2 Acknowledgement of DeptDivision goals achieved
3 Project Completion meals
4 Birthday cakes and cards
5 Picnics
6 Staff Appreciation Day
7 Holiday Parties
8 Dress-up Days
9 Corporate Merchandise
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-
16
OBJECTIVES OF HRP
1 to prevent overstaffing and understaffing
2 to ensure employee availability
3 to ensure that the organization is responsive to the environment
4 to provide direction to all HR activities and
5 to build line and staff partnership
17
bull Environmental scanning
bull Forecasting and analyzing demand for human resources
bull Forecasting and analyzing supply of human resources
bull Developing action plans to match human resource demand and supplyndash HR Supply = HR demandndash HR Supply lt HR demand (deficitshortage)ndash HR Supply gt HR demand (surplus)
PROCESS OF HRP
18
bull Qualitative Methods
ndash Estimation (Centralized ndash HR Decentralized ndash Line Mgrs
ndash Expert Opinions
(a) Delphi techniques
(b) Group brainstorming
(c) Nominal group technique
(d) Averaging
ndash Sales force estimate
TECHNIQUES OF HR DEMAND FORECASTING
19
bull Quantitative Methods
bull Trend analysis and projection
bull Simulation models (probabilities of future events to estimate future employment levels)
bull Workload analysis (Both the number of employees and the kind of employees required to achieve organizational goals are identified)
bull Markov analysis
TECHNIQUES OF HR DEMAND FORECASTING
20
ATTRACTING THE TALENT RECRUITMENT
SELECTION AND OUTSOURCING
21
Internal Sources of Recruitment
1 Transfers
2 Promotions
3 Upgrading and demotion
4 Retired and retrenched employees
5 Deceased employees and disabled employees
SOURCES OF RECRUITMENT
22
External Sources of Recruitment
bull Press advertisements bull Educational institutesbull Placement agencies bull Employment exchanges bull Labour contractorsbull Unsolicited applicants bull Employee referralsrecommendations
SOURCES OF RECRUITMENT
23
THE SELECTION PROCESS
1 Pre screening
2 Initial interview
3 Reference and other checks
4 Application forms or lsquoblanksrsquo
5 Selection testing
6 Comprehensive interview
7 Job offer
8 Medical examination
24
Interviews
I Unstructured Interview
II Situational Interview
III Behavior Description Interviews
IV Comprehensive Structured Interviews
V Structured Behavioral Interview
25
PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
1048698 Unclear role of interviewer
1048698 Unprepared interviewer
1048698 Halo effect
1048698 Snap judgement
1048698 Personal biases
1048698 Ineffective communication
1048698 Contrast effect
1048698 Reflection effect
1048698 Satisfying onersquos own needs
26
bull INDUCTION
bull OUTSOURCING
27
COMPETENCY MAPPING AND ASSESSMENT CENTRES
28
Competencies
competencies are typically defined as a combination of knowledge skills abilities and other individual characteristics that can be reliably measured and that can be shown to differentiate performance
29
VARIOUS COMPETENCY MODELS
1048698Job Competencies Assessment Model interviews and
observations of outstanding and average performers
1048698Modified Job Competence Assessment Model a written account
of critical incidents (to reduce costs)
1048698Generic Model Overlay Method off-the-shelf
1048698Customized Generic Model Method tentative list of
competencies that are identified internally
1048698Flexible Job Competency Model Method under different conditions in the future
1048698Systems Method behaviors that may be important in the
future
30
HISTORY OF ASSESSMENT CENTRES
bull 1942
bull exceptional smartness
bull War Office Selection Boards
31
MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
Types of Psychological Tests
1048698 IQAchievement tests
1048698 Situational tests Situations are given and an individualrsquos behaviorresponse is observed
1048698 Psychometric tests
1048698 Personality Questionnaire
1048698 Interest Questionnaire
1048698 Values Questionnaire
32
MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
bull The Leaderless Group Discussion (LGD)bull In-basket Exercisebull Group Exercisesbull Behavioral Event Interviews
33
Difference between Assessment Centre and Development Center
34
PERFORMANCE PLANNING AND REVIEW
35
GOALS OF PERFORMANCE APPRAISAL
1048698 Each objective should be SMART ndash specific measurable agreed realistic and time-limited
1048698 Each objective must be in an area over which the employee has control
1048698 Give each objective a deadline
1048698 A clear target allows you to measure whether the employee is making the progress you expect
1048698 Provide information to assist in the HR decisions like promotions transfers etc
36
PROCESS OF PERFORMANCE APPRAISAL
bull Establishing Performance Standards
bull Communicating the Standards
37
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
bull Broadly all methods of appraisals can be divided into two different categories
bull 1048698 Past Oriented Methodsbull 1048698 Future Oriented Methods
38
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Past Oriented Methods
1 Rating Scales Rating scales consists of several numerical scales representing job related performance criterions such as dependability initiative output attendance attitude etc Each scales ranges from excellent to poor The total numerical scores are computed and final conclusions are derived
Advantages Adaptability easy to use low cost every type of job can be
evaluated large number of employees covered no formal training required
Disadvantages Raterrsquos biases
2 Checklist Under this method checklist of statements of traits of employee in the
form of Yes or No based questions is prepared Here the rater only does the
reporting or checking and HR department does the actual evaluation
Advantages Economy ease of administration limited training required
standardization
Disadvantages Raters biases use of improper weighs by HR does not allow rater
to give relative ratings
39
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
3 Forced Choice Method The series of statements arranged in the blocks of two or more are given and the rater indicates which statement is true or false The rater is forced to make a choice HR department does actual assessment
Advantages Absence of personal biases because of forced choice
Disadvantages Statements may be wrongly framed
4 Forced Distribution Method Here employees are clustered around a high point on a rating scale Rater is compelled to distribute the employees on all points on the scale It is assumed that the performance is conformed to normal distribution
Advantages Eliminates biasness
Disadvantages Assumption of normal distribution unrealistic errors of central
tendency
40
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
5 Critical Incidents Method The approach is focused on certain critical behaviors
of employee that makes all the difference in the performance Supervisors as and
when they occur record such incidents
Advantages Evaluations are based on actual job behaviors ratings are supported
by descriptions feedback is easy reduces recency biases chances of subordinate
improvement are high
Disadvantages Negative incidents can be prioritized forgetting incidents overly
close supervision feedback may be too much and may appear to be punishment
6 Behaviorally Anchored Rating Scales Statements of effective and ineffective
behaviors determine the points They are said to be behaviorally anchored The
rater is supposed to say which behavior describes the employee performance
Advantages Helps overcome rating errors
Disadvantages Suffers from distortions inherent in most rating techniques
41
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
7 Field Review Method This is an appraisal done by someone outside employeesrsquo own department usually from corporate or HR department
Advantages Useful for managerial level promotions when comparable
information is needed
Disadvantages Outsider is generally not familiar with employees work
environment Observation of actual behaviors not possible
8 Performance Tests amp Observations This is based on the test of knowledge or skills The tests may be written or an actual presentation of skills Tests must be reliable and validated to be useful
Advantages Tests may be apt to measure potential more than actual performance
Disadvantages Tests may suffer if costs of test development or administration are high
42
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Future Oriented Methods
1 Management by Objectives It means management by objectives and the
performance is rated against the achievement of objectives stated by the
management MBO process
(a) Establish goals and desired outcomes for each subordinate
(b) Setting performance standards
(c) Comparison of actual goals with goals attained by the employee
(d) Establish new goals and new strategies for goals not achieved in previous
year
43
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Future Oriented Methods
2 Psychological Appraisals
These appraisals are more directed to assess employeersquos potential for future performance rather than the past one It is done in the form of in-depth interviews psychological tests and discussion with supervisors and review of other evaluations
It is more focused on employees emotional intellectual and motivational and other personal characteristics affecting his performance This approach is slow and costly and may be useful for bright young members who may have considerable potential However quality of these appraisals largely depend upon the skills of psychologists who perform the evaluation
44
1 Leniency amp Severity
2 Central Tendency
3 Halo Effect
4 Primacy amp Recency Effect
5 Spillover Effects
6 Status Effect
Problems of RatingRating Biases
45
PERFORMANCE COACHING
The performance coaching process involves five strategies
1 Creating a partnership role To make employees realize that both employees and manger are responsible for performance and build trust amongst them
2 Commitment Inspiring employees to be committed to the goals
3 Competency development Awareness towards developing skills and
competencies required to reach to organizational goals
4 Perseverance Developing lsquonever say diersquo attitude among organizational members
5 Shaping the environment Creating conditions for employee development
46
THE COACHING DISCUSSION
Kinlawrsquos Approach
Kinlaw suggests a three-stage approach to the coaching discussion as follows
1048698 Confronting or presenting
1048698 Using reactions to develop information
1048698 Resolving or resolution
47
THE COACHING DISCUSSION
bull Fourniesrsquo Approach
bull Step 1 Get the employeersquos agreement that a problem existsbull Step 2 Mutually discuss alternative solutions to the problembull Step 3 Mutually agree on actions to be taken to solve the problembull Step 4 Follow-up to measure resultsbull Step 5 Recognize any achievement when it occurs
48
MENTORING
bull Mentorship is a process where an experienced person provides help guidance support to nurture and develop a less experienced person referred to as a proteacutegeacute apprentice mentee or (person) It improves the self esteem of mentee and increases hisher chance for success
49
MENTORING - Kinds
1048698 New-hire mentorship
1048698 High-potential mentorship
1048698 Mentorship in Education
50
POTENTIAL APPRAISAL CAREER AND SUCCESSION
PLANNING
51
POTENTIAL APPRAISAL
Purpose of Potential Appraisal
Potential appraisal serves the following purposes
1048698 To advise employees about their overall career development and future prospects
1048698 Help the organisation to chalk out succession plans
1048698 Motivate the employees to further develop their skills and competencies
1048698 To identify the training needs
52
POTENTIAL APPRAISAL
Techniques of Potential Appraisal
1048698 Self-appraisals
1048698 Peer appraisals
1048698 Superior appraisals
1048698 MBO
1048698 Psychological and psychometric tests
1048698 Management games like role playing
1048698 Leadership exercises etc
53
CAREER PLANNING
Steps in Career Planning Process
Step One Self Assessment
Step Two Goal Setting
Step Three AcademicCareer Options
Step Four Plan of Action
Step Five Catch Hold of Opportunities
54
bull Succession Planning refers to the process of developing the second line for taking up a higher role in the organization
SUCCESSION PLANNING
55
HR MEASUREMENT AND AUDIT
bull Audit helps the organization have a clear understanding of the lacunae and better align the HR processes with Business goals
bull The audit itself is a diagnostic tool not a prescriptive instrument It helps in identifying what is missing or needs to improve It is most useful when an organization is ready to act on the findings and to evolve its HR function to play a greater strategic role
56
WHY CONDUCT AN HR AUDIT
1048698 It helps promote more professionalism and professional management
1048698 HR audit helps an organization to be aware of its present practices policies
and their adherence
1048698 Benchmarking to improve HR practices
1048698 The organization can benchmark its processes with best-in-class organizations
1048698 HR audit suggest improvement measures keeping the organizational strategic goals and vision in mind
57
THE HR AUDIT PROCESS
InterviewsQuestionnaires
The audit team interviews the following
1048698 Top Management (CEO Unit Heads)
1048698 Line Managers (eg Managers in production quality purchase and marketing)
1048698 HRD Staff
1048698 Workmen and others
Observation and Recording
Follow-up and Corrections done
58
HUMAN RESOURCE ACCOUNTING
bull The American Accounting Associationrsquos Committee on Human Resource Accounting (1973) has defined Human Resource Accounting as ldquothe process of identifying and measuring data about human resources and communicating this information to interested partiesrdquo
bull It is the measurement and reporting of the cost and value of people in organizational Resources
59
METHODS OF HUMAN RESOURCE ACCOUNTING
Methods of Valuing and Accounting of Human Resources
The methods to value and account for human resources can be classified into the following categories
1 Methods based on costs (which include costs incurred by the company to recruit hire train and develop human resources)
2 Methods based on economic value of human resources and the capitalisation of companyrsquos earnings
60
HUMAN RESOURCE ACCOUNTING
Methods based on Cost
Historical Cost Method
Under this method the cost of acquisition ie selection hiring training costs of employees are capitalised and written off over the expected useful life of the employees In case the personnel leave the company before the anticipated period of service then the unamortised portion of costs remaining in the companyrsquos books is written off against the profit and loss account in that year If the period of service exceeds the anticipated time then amortisation of costs is rescheduled
Replacement Cost Method
Under this method the human resources are valued at their replacement cost ie The monetary implications of replacing existing personnel
Standard Cost Method
Under this method standard costs of recruiting hiring training and developing per grade of employees are determined annually The total standard cost for all personnel of the company is the value of human resources
61
HUMAN RESOURCE ACCOUNTING
bull HR Accounting based on Value
bull Economic Value Method
bull Under this method the net present value of incremental cash flows attributed to human resources is taken as the asset value
62
HUMAN RESOURCE INFORMATION SYSTEMS(HRIS)
bull An information system may be automated or manual and involves collectingprocessing transmitting and disseminating data that represents user information
63
HRIS ndash APPLICATION AND UTILITIES
Personnel administration It will encompass information about each employee
such as name address personal details etc
1048698 Salary administration Generate personnel cost reports conduct lsquowhat if
analysisrsquo provide compensation history
1048698 Leave and absence recording Essentially being able to provide comprehensive
method of tracking absences late coming reports on excess leave availed leave
lapsed
1048698 Skill inventory Recording of acquired skills and monitor the skill database at the
employee and organisational level
1048698 Performance appraisal The system should record individual employee
performance appraisal data such as appraisal ratings due date of appraisal
training needs identified during the appraisal process
1048698 Recruitment Record recruitment cost lead time to fill a vacant position
recruitment methods applicant and resume management
1048698 Career planning HRIS System can provide succession plan reports identifying
employees earmarked for future position
64
HRIS ndash DISADVANTAGES
May be expensive ndash financing the technology
1048698 Thorough understanding of what constitutes quality information for the user
1048698 Computer cannot substitute human beings
HUMAN RESOURCE DEVELOPMENT SYSTEM
66
HRD
HRD play a very crucial role in organization Henery Ford once said ldquotake out my building take out my machines take out all capital but leave my men with me and I will become Henry Ford againrdquo HRD is considered as key to higher productivity better relations and greater profitability for any organization
According to Daftur
ldquoHRD is a system and process concerned with an organized series of learning activities within specified time limits designed to produce behavioral changes in the learner in such a way that it acquires desired level of competence for present or future rolerdquo
67
HRDORGANIZATION ALIGNMENT MODEL
TRAINING AND DEVELOPMENT
69
NEED FOR TRAINING AND DEVELOPMENT
bull Technological advances bull Organizational complexity bull Organizational tenure bull Human relations movement
70
THE TRAINING PROCESS
71
Needs Assessment
72
bull Lecturesbull Audio Visualsbull On-the-job Training (OJT)bull Programmed Instructionbull Computer Assisted Instruction (CAI)bull Simulation
Methods and Techniques of Training
73
Training Methods for Management Development
1048698 Seminars and Conferences
1048698 Case Study
1048698 Role Playing
1048698 Management Games
1048698 Sensitivity Training
74
bull Implementation of the Training Program
bull Evaluation of Training Program
75
Kirkpatrick Model for Evaluating Effectiveness of Training Programs
1 Reactions
2 Learning
3 Behaviors
Results or Return on Investment (ROI)
76
SPECIAL TOPICS IN TRAINING ANDDEVELOPMENT
bull Cross-cultural Training
bull Orientation Training
bull Team-training and Cross-training
bull Diversity Training
COMPENSATION AND REWARDS
78
COMPENSATION OVERVIEW
Compensation is the process of directly and indirectly rewarding employees on a current or deferred basis for their performance of assigned tasks It consists of
1048698 Direct Financial Compensation Wages salaries bonuses commissions
1048698 Indirect Financial Compensation All financial rewards not included in direct compensation (benefits)
1048698 Non-financial Compensation Satisfaction received from the job or from the psychological andor physical environment of the job
JOB EVALUATION TECHNIQUE
The general step-wise procedure for job evaluation is as under
1 Select the group of jobs
2 Study the job (job analysis)
3 Prepare job description ndash approval
4 Device an evaluation plan ndash common characteristicstraits
5 Establish a committee of raters and rateevaluate
6 Group or classify the jobs
7 Convert job grades to money value along with Wage survey
8 Obtain approval from Union and Management
9 Establish a suitable grievance procedure
COMPONENTS OF COMPENSATION SYSTEM
1 Basic WagesSalaries
2 Dearness Allowance
3 Bonus
4 Commissions
5 Mixed Plans
6 Piece Rate Wages
7 Sign on Bonuses
8 Profit Sharing Payments
9 Fringe Benefits
COMPENSATION EQUITY
1048698 External Equity Employees are paid comparably to those who perform similar jobs in other industries
1048698 Internal Equity Employees are paid according to relative value of their jobs within an organisation
1048698 Employee Equity Individuals performing similar jobs for the same firm are rewarded according to factors unique to the employee such as performance level or seniority
1048698 Team Equity More productive teams receive greater rewards than less productive groups
INTERNATIONAL COMPENSATION
Elements of Expatriate Compensation
Basic Pay Amount of money that an expatriate receives from home country Used for
Bonus calculation
Benefits
1048698 One third of compensation
1048698 Extra vacation special leaves air fares for their families for an annual visit home
emergency leaves
1048698 Housing
1048698 Utilities ndash air conditioner bottled water electricity telephone call expenses
1048698 Car ndash car expenses chauffeur hired vehicle
Helping hands servants gardeners security
1048698 Club subscription
1048698 Educational benefits
Allowances
1048698 COLA ndash cost of living between home country and foreign country inflation
1048698 Relocation allowances
1048698 Hardship allowances
1048698 Separation allowances
1048698 Clothing allowances ndash very cold climates
1048698 Home leave allowances
1048698 Spouse assistance allowances
REWARDS SYSTEM
Reward System as Followed by Organisations
1 Incentive and Rewards
2 Competency Related Pay
3 Skill Based Pay
4 Team Based Rewards
5 Profit Sharing
7 Employee Ownership
8 Statutory and Voluntary Benefits
FORMS OF RECOGNITION
Examples of Formal Recognition
1 Milestone Service Anniversary Awards (5101520 25 years of service)
2 Ideas Improvement amp Performance Awards
3 Service Awards
a) Teamworkleadership
b) Customer Service
c) Citizenship
d) Innovation
e) Attendance
4 Awards would include
a) PlaquesDesk trophies
b) Certificates
c) GiftsCertificates
d) Picture in the webpage
FORMS OF RECOGNITION
Examples of Informal Recognition
1 Team Building Retreats
2 Acknowledgement of DeptDivision goals achieved
3 Project Completion meals
4 Birthday cakes and cards
5 Picnics
6 Staff Appreciation Day
7 Holiday Parties
8 Dress-up Days
9 Corporate Merchandise
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-
17
bull Environmental scanning
bull Forecasting and analyzing demand for human resources
bull Forecasting and analyzing supply of human resources
bull Developing action plans to match human resource demand and supplyndash HR Supply = HR demandndash HR Supply lt HR demand (deficitshortage)ndash HR Supply gt HR demand (surplus)
PROCESS OF HRP
18
bull Qualitative Methods
ndash Estimation (Centralized ndash HR Decentralized ndash Line Mgrs
ndash Expert Opinions
(a) Delphi techniques
(b) Group brainstorming
(c) Nominal group technique
(d) Averaging
ndash Sales force estimate
TECHNIQUES OF HR DEMAND FORECASTING
19
bull Quantitative Methods
bull Trend analysis and projection
bull Simulation models (probabilities of future events to estimate future employment levels)
bull Workload analysis (Both the number of employees and the kind of employees required to achieve organizational goals are identified)
bull Markov analysis
TECHNIQUES OF HR DEMAND FORECASTING
20
ATTRACTING THE TALENT RECRUITMENT
SELECTION AND OUTSOURCING
21
Internal Sources of Recruitment
1 Transfers
2 Promotions
3 Upgrading and demotion
4 Retired and retrenched employees
5 Deceased employees and disabled employees
SOURCES OF RECRUITMENT
22
External Sources of Recruitment
bull Press advertisements bull Educational institutesbull Placement agencies bull Employment exchanges bull Labour contractorsbull Unsolicited applicants bull Employee referralsrecommendations
SOURCES OF RECRUITMENT
23
THE SELECTION PROCESS
1 Pre screening
2 Initial interview
3 Reference and other checks
4 Application forms or lsquoblanksrsquo
5 Selection testing
6 Comprehensive interview
7 Job offer
8 Medical examination
24
Interviews
I Unstructured Interview
II Situational Interview
III Behavior Description Interviews
IV Comprehensive Structured Interviews
V Structured Behavioral Interview
25
PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
1048698 Unclear role of interviewer
1048698 Unprepared interviewer
1048698 Halo effect
1048698 Snap judgement
1048698 Personal biases
1048698 Ineffective communication
1048698 Contrast effect
1048698 Reflection effect
1048698 Satisfying onersquos own needs
26
bull INDUCTION
bull OUTSOURCING
27
COMPETENCY MAPPING AND ASSESSMENT CENTRES
28
Competencies
competencies are typically defined as a combination of knowledge skills abilities and other individual characteristics that can be reliably measured and that can be shown to differentiate performance
29
VARIOUS COMPETENCY MODELS
1048698Job Competencies Assessment Model interviews and
observations of outstanding and average performers
1048698Modified Job Competence Assessment Model a written account
of critical incidents (to reduce costs)
1048698Generic Model Overlay Method off-the-shelf
1048698Customized Generic Model Method tentative list of
competencies that are identified internally
1048698Flexible Job Competency Model Method under different conditions in the future
1048698Systems Method behaviors that may be important in the
future
30
HISTORY OF ASSESSMENT CENTRES
bull 1942
bull exceptional smartness
bull War Office Selection Boards
31
MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
Types of Psychological Tests
1048698 IQAchievement tests
1048698 Situational tests Situations are given and an individualrsquos behaviorresponse is observed
1048698 Psychometric tests
1048698 Personality Questionnaire
1048698 Interest Questionnaire
1048698 Values Questionnaire
32
MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
bull The Leaderless Group Discussion (LGD)bull In-basket Exercisebull Group Exercisesbull Behavioral Event Interviews
33
Difference between Assessment Centre and Development Center
34
PERFORMANCE PLANNING AND REVIEW
35
GOALS OF PERFORMANCE APPRAISAL
1048698 Each objective should be SMART ndash specific measurable agreed realistic and time-limited
1048698 Each objective must be in an area over which the employee has control
1048698 Give each objective a deadline
1048698 A clear target allows you to measure whether the employee is making the progress you expect
1048698 Provide information to assist in the HR decisions like promotions transfers etc
36
PROCESS OF PERFORMANCE APPRAISAL
bull Establishing Performance Standards
bull Communicating the Standards
37
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
bull Broadly all methods of appraisals can be divided into two different categories
bull 1048698 Past Oriented Methodsbull 1048698 Future Oriented Methods
38
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Past Oriented Methods
1 Rating Scales Rating scales consists of several numerical scales representing job related performance criterions such as dependability initiative output attendance attitude etc Each scales ranges from excellent to poor The total numerical scores are computed and final conclusions are derived
Advantages Adaptability easy to use low cost every type of job can be
evaluated large number of employees covered no formal training required
Disadvantages Raterrsquos biases
2 Checklist Under this method checklist of statements of traits of employee in the
form of Yes or No based questions is prepared Here the rater only does the
reporting or checking and HR department does the actual evaluation
Advantages Economy ease of administration limited training required
standardization
Disadvantages Raters biases use of improper weighs by HR does not allow rater
to give relative ratings
39
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
3 Forced Choice Method The series of statements arranged in the blocks of two or more are given and the rater indicates which statement is true or false The rater is forced to make a choice HR department does actual assessment
Advantages Absence of personal biases because of forced choice
Disadvantages Statements may be wrongly framed
4 Forced Distribution Method Here employees are clustered around a high point on a rating scale Rater is compelled to distribute the employees on all points on the scale It is assumed that the performance is conformed to normal distribution
Advantages Eliminates biasness
Disadvantages Assumption of normal distribution unrealistic errors of central
tendency
40
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
5 Critical Incidents Method The approach is focused on certain critical behaviors
of employee that makes all the difference in the performance Supervisors as and
when they occur record such incidents
Advantages Evaluations are based on actual job behaviors ratings are supported
by descriptions feedback is easy reduces recency biases chances of subordinate
improvement are high
Disadvantages Negative incidents can be prioritized forgetting incidents overly
close supervision feedback may be too much and may appear to be punishment
6 Behaviorally Anchored Rating Scales Statements of effective and ineffective
behaviors determine the points They are said to be behaviorally anchored The
rater is supposed to say which behavior describes the employee performance
Advantages Helps overcome rating errors
Disadvantages Suffers from distortions inherent in most rating techniques
41
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
7 Field Review Method This is an appraisal done by someone outside employeesrsquo own department usually from corporate or HR department
Advantages Useful for managerial level promotions when comparable
information is needed
Disadvantages Outsider is generally not familiar with employees work
environment Observation of actual behaviors not possible
8 Performance Tests amp Observations This is based on the test of knowledge or skills The tests may be written or an actual presentation of skills Tests must be reliable and validated to be useful
Advantages Tests may be apt to measure potential more than actual performance
Disadvantages Tests may suffer if costs of test development or administration are high
42
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Future Oriented Methods
1 Management by Objectives It means management by objectives and the
performance is rated against the achievement of objectives stated by the
management MBO process
(a) Establish goals and desired outcomes for each subordinate
(b) Setting performance standards
(c) Comparison of actual goals with goals attained by the employee
(d) Establish new goals and new strategies for goals not achieved in previous
year
43
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Future Oriented Methods
2 Psychological Appraisals
These appraisals are more directed to assess employeersquos potential for future performance rather than the past one It is done in the form of in-depth interviews psychological tests and discussion with supervisors and review of other evaluations
It is more focused on employees emotional intellectual and motivational and other personal characteristics affecting his performance This approach is slow and costly and may be useful for bright young members who may have considerable potential However quality of these appraisals largely depend upon the skills of psychologists who perform the evaluation
44
1 Leniency amp Severity
2 Central Tendency
3 Halo Effect
4 Primacy amp Recency Effect
5 Spillover Effects
6 Status Effect
Problems of RatingRating Biases
45
PERFORMANCE COACHING
The performance coaching process involves five strategies
1 Creating a partnership role To make employees realize that both employees and manger are responsible for performance and build trust amongst them
2 Commitment Inspiring employees to be committed to the goals
3 Competency development Awareness towards developing skills and
competencies required to reach to organizational goals
4 Perseverance Developing lsquonever say diersquo attitude among organizational members
5 Shaping the environment Creating conditions for employee development
46
THE COACHING DISCUSSION
Kinlawrsquos Approach
Kinlaw suggests a three-stage approach to the coaching discussion as follows
1048698 Confronting or presenting
1048698 Using reactions to develop information
1048698 Resolving or resolution
47
THE COACHING DISCUSSION
bull Fourniesrsquo Approach
bull Step 1 Get the employeersquos agreement that a problem existsbull Step 2 Mutually discuss alternative solutions to the problembull Step 3 Mutually agree on actions to be taken to solve the problembull Step 4 Follow-up to measure resultsbull Step 5 Recognize any achievement when it occurs
48
MENTORING
bull Mentorship is a process where an experienced person provides help guidance support to nurture and develop a less experienced person referred to as a proteacutegeacute apprentice mentee or (person) It improves the self esteem of mentee and increases hisher chance for success
49
MENTORING - Kinds
1048698 New-hire mentorship
1048698 High-potential mentorship
1048698 Mentorship in Education
50
POTENTIAL APPRAISAL CAREER AND SUCCESSION
PLANNING
51
POTENTIAL APPRAISAL
Purpose of Potential Appraisal
Potential appraisal serves the following purposes
1048698 To advise employees about their overall career development and future prospects
1048698 Help the organisation to chalk out succession plans
1048698 Motivate the employees to further develop their skills and competencies
1048698 To identify the training needs
52
POTENTIAL APPRAISAL
Techniques of Potential Appraisal
1048698 Self-appraisals
1048698 Peer appraisals
1048698 Superior appraisals
1048698 MBO
1048698 Psychological and psychometric tests
1048698 Management games like role playing
1048698 Leadership exercises etc
53
CAREER PLANNING
Steps in Career Planning Process
Step One Self Assessment
Step Two Goal Setting
Step Three AcademicCareer Options
Step Four Plan of Action
Step Five Catch Hold of Opportunities
54
bull Succession Planning refers to the process of developing the second line for taking up a higher role in the organization
SUCCESSION PLANNING
55
HR MEASUREMENT AND AUDIT
bull Audit helps the organization have a clear understanding of the lacunae and better align the HR processes with Business goals
bull The audit itself is a diagnostic tool not a prescriptive instrument It helps in identifying what is missing or needs to improve It is most useful when an organization is ready to act on the findings and to evolve its HR function to play a greater strategic role
56
WHY CONDUCT AN HR AUDIT
1048698 It helps promote more professionalism and professional management
1048698 HR audit helps an organization to be aware of its present practices policies
and their adherence
1048698 Benchmarking to improve HR practices
1048698 The organization can benchmark its processes with best-in-class organizations
1048698 HR audit suggest improvement measures keeping the organizational strategic goals and vision in mind
57
THE HR AUDIT PROCESS
InterviewsQuestionnaires
The audit team interviews the following
1048698 Top Management (CEO Unit Heads)
1048698 Line Managers (eg Managers in production quality purchase and marketing)
1048698 HRD Staff
1048698 Workmen and others
Observation and Recording
Follow-up and Corrections done
58
HUMAN RESOURCE ACCOUNTING
bull The American Accounting Associationrsquos Committee on Human Resource Accounting (1973) has defined Human Resource Accounting as ldquothe process of identifying and measuring data about human resources and communicating this information to interested partiesrdquo
bull It is the measurement and reporting of the cost and value of people in organizational Resources
59
METHODS OF HUMAN RESOURCE ACCOUNTING
Methods of Valuing and Accounting of Human Resources
The methods to value and account for human resources can be classified into the following categories
1 Methods based on costs (which include costs incurred by the company to recruit hire train and develop human resources)
2 Methods based on economic value of human resources and the capitalisation of companyrsquos earnings
60
HUMAN RESOURCE ACCOUNTING
Methods based on Cost
Historical Cost Method
Under this method the cost of acquisition ie selection hiring training costs of employees are capitalised and written off over the expected useful life of the employees In case the personnel leave the company before the anticipated period of service then the unamortised portion of costs remaining in the companyrsquos books is written off against the profit and loss account in that year If the period of service exceeds the anticipated time then amortisation of costs is rescheduled
Replacement Cost Method
Under this method the human resources are valued at their replacement cost ie The monetary implications of replacing existing personnel
Standard Cost Method
Under this method standard costs of recruiting hiring training and developing per grade of employees are determined annually The total standard cost for all personnel of the company is the value of human resources
61
HUMAN RESOURCE ACCOUNTING
bull HR Accounting based on Value
bull Economic Value Method
bull Under this method the net present value of incremental cash flows attributed to human resources is taken as the asset value
62
HUMAN RESOURCE INFORMATION SYSTEMS(HRIS)
bull An information system may be automated or manual and involves collectingprocessing transmitting and disseminating data that represents user information
63
HRIS ndash APPLICATION AND UTILITIES
Personnel administration It will encompass information about each employee
such as name address personal details etc
1048698 Salary administration Generate personnel cost reports conduct lsquowhat if
analysisrsquo provide compensation history
1048698 Leave and absence recording Essentially being able to provide comprehensive
method of tracking absences late coming reports on excess leave availed leave
lapsed
1048698 Skill inventory Recording of acquired skills and monitor the skill database at the
employee and organisational level
1048698 Performance appraisal The system should record individual employee
performance appraisal data such as appraisal ratings due date of appraisal
training needs identified during the appraisal process
1048698 Recruitment Record recruitment cost lead time to fill a vacant position
recruitment methods applicant and resume management
1048698 Career planning HRIS System can provide succession plan reports identifying
employees earmarked for future position
64
HRIS ndash DISADVANTAGES
May be expensive ndash financing the technology
1048698 Thorough understanding of what constitutes quality information for the user
1048698 Computer cannot substitute human beings
HUMAN RESOURCE DEVELOPMENT SYSTEM
66
HRD
HRD play a very crucial role in organization Henery Ford once said ldquotake out my building take out my machines take out all capital but leave my men with me and I will become Henry Ford againrdquo HRD is considered as key to higher productivity better relations and greater profitability for any organization
According to Daftur
ldquoHRD is a system and process concerned with an organized series of learning activities within specified time limits designed to produce behavioral changes in the learner in such a way that it acquires desired level of competence for present or future rolerdquo
67
HRDORGANIZATION ALIGNMENT MODEL
TRAINING AND DEVELOPMENT
69
NEED FOR TRAINING AND DEVELOPMENT
bull Technological advances bull Organizational complexity bull Organizational tenure bull Human relations movement
70
THE TRAINING PROCESS
71
Needs Assessment
72
bull Lecturesbull Audio Visualsbull On-the-job Training (OJT)bull Programmed Instructionbull Computer Assisted Instruction (CAI)bull Simulation
Methods and Techniques of Training
73
Training Methods for Management Development
1048698 Seminars and Conferences
1048698 Case Study
1048698 Role Playing
1048698 Management Games
1048698 Sensitivity Training
74
bull Implementation of the Training Program
bull Evaluation of Training Program
75
Kirkpatrick Model for Evaluating Effectiveness of Training Programs
1 Reactions
2 Learning
3 Behaviors
Results or Return on Investment (ROI)
76
SPECIAL TOPICS IN TRAINING ANDDEVELOPMENT
bull Cross-cultural Training
bull Orientation Training
bull Team-training and Cross-training
bull Diversity Training
COMPENSATION AND REWARDS
78
COMPENSATION OVERVIEW
Compensation is the process of directly and indirectly rewarding employees on a current or deferred basis for their performance of assigned tasks It consists of
1048698 Direct Financial Compensation Wages salaries bonuses commissions
1048698 Indirect Financial Compensation All financial rewards not included in direct compensation (benefits)
1048698 Non-financial Compensation Satisfaction received from the job or from the psychological andor physical environment of the job
JOB EVALUATION TECHNIQUE
The general step-wise procedure for job evaluation is as under
1 Select the group of jobs
2 Study the job (job analysis)
3 Prepare job description ndash approval
4 Device an evaluation plan ndash common characteristicstraits
5 Establish a committee of raters and rateevaluate
6 Group or classify the jobs
7 Convert job grades to money value along with Wage survey
8 Obtain approval from Union and Management
9 Establish a suitable grievance procedure
COMPONENTS OF COMPENSATION SYSTEM
1 Basic WagesSalaries
2 Dearness Allowance
3 Bonus
4 Commissions
5 Mixed Plans
6 Piece Rate Wages
7 Sign on Bonuses
8 Profit Sharing Payments
9 Fringe Benefits
COMPENSATION EQUITY
1048698 External Equity Employees are paid comparably to those who perform similar jobs in other industries
1048698 Internal Equity Employees are paid according to relative value of their jobs within an organisation
1048698 Employee Equity Individuals performing similar jobs for the same firm are rewarded according to factors unique to the employee such as performance level or seniority
1048698 Team Equity More productive teams receive greater rewards than less productive groups
INTERNATIONAL COMPENSATION
Elements of Expatriate Compensation
Basic Pay Amount of money that an expatriate receives from home country Used for
Bonus calculation
Benefits
1048698 One third of compensation
1048698 Extra vacation special leaves air fares for their families for an annual visit home
emergency leaves
1048698 Housing
1048698 Utilities ndash air conditioner bottled water electricity telephone call expenses
1048698 Car ndash car expenses chauffeur hired vehicle
Helping hands servants gardeners security
1048698 Club subscription
1048698 Educational benefits
Allowances
1048698 COLA ndash cost of living between home country and foreign country inflation
1048698 Relocation allowances
1048698 Hardship allowances
1048698 Separation allowances
1048698 Clothing allowances ndash very cold climates
1048698 Home leave allowances
1048698 Spouse assistance allowances
REWARDS SYSTEM
Reward System as Followed by Organisations
1 Incentive and Rewards
2 Competency Related Pay
3 Skill Based Pay
4 Team Based Rewards
5 Profit Sharing
7 Employee Ownership
8 Statutory and Voluntary Benefits
FORMS OF RECOGNITION
Examples of Formal Recognition
1 Milestone Service Anniversary Awards (5101520 25 years of service)
2 Ideas Improvement amp Performance Awards
3 Service Awards
a) Teamworkleadership
b) Customer Service
c) Citizenship
d) Innovation
e) Attendance
4 Awards would include
a) PlaquesDesk trophies
b) Certificates
c) GiftsCertificates
d) Picture in the webpage
FORMS OF RECOGNITION
Examples of Informal Recognition
1 Team Building Retreats
2 Acknowledgement of DeptDivision goals achieved
3 Project Completion meals
4 Birthday cakes and cards
5 Picnics
6 Staff Appreciation Day
7 Holiday Parties
8 Dress-up Days
9 Corporate Merchandise
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-
18
bull Qualitative Methods
ndash Estimation (Centralized ndash HR Decentralized ndash Line Mgrs
ndash Expert Opinions
(a) Delphi techniques
(b) Group brainstorming
(c) Nominal group technique
(d) Averaging
ndash Sales force estimate
TECHNIQUES OF HR DEMAND FORECASTING
19
bull Quantitative Methods
bull Trend analysis and projection
bull Simulation models (probabilities of future events to estimate future employment levels)
bull Workload analysis (Both the number of employees and the kind of employees required to achieve organizational goals are identified)
bull Markov analysis
TECHNIQUES OF HR DEMAND FORECASTING
20
ATTRACTING THE TALENT RECRUITMENT
SELECTION AND OUTSOURCING
21
Internal Sources of Recruitment
1 Transfers
2 Promotions
3 Upgrading and demotion
4 Retired and retrenched employees
5 Deceased employees and disabled employees
SOURCES OF RECRUITMENT
22
External Sources of Recruitment
bull Press advertisements bull Educational institutesbull Placement agencies bull Employment exchanges bull Labour contractorsbull Unsolicited applicants bull Employee referralsrecommendations
SOURCES OF RECRUITMENT
23
THE SELECTION PROCESS
1 Pre screening
2 Initial interview
3 Reference and other checks
4 Application forms or lsquoblanksrsquo
5 Selection testing
6 Comprehensive interview
7 Job offer
8 Medical examination
24
Interviews
I Unstructured Interview
II Situational Interview
III Behavior Description Interviews
IV Comprehensive Structured Interviews
V Structured Behavioral Interview
25
PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
1048698 Unclear role of interviewer
1048698 Unprepared interviewer
1048698 Halo effect
1048698 Snap judgement
1048698 Personal biases
1048698 Ineffective communication
1048698 Contrast effect
1048698 Reflection effect
1048698 Satisfying onersquos own needs
26
bull INDUCTION
bull OUTSOURCING
27
COMPETENCY MAPPING AND ASSESSMENT CENTRES
28
Competencies
competencies are typically defined as a combination of knowledge skills abilities and other individual characteristics that can be reliably measured and that can be shown to differentiate performance
29
VARIOUS COMPETENCY MODELS
1048698Job Competencies Assessment Model interviews and
observations of outstanding and average performers
1048698Modified Job Competence Assessment Model a written account
of critical incidents (to reduce costs)
1048698Generic Model Overlay Method off-the-shelf
1048698Customized Generic Model Method tentative list of
competencies that are identified internally
1048698Flexible Job Competency Model Method under different conditions in the future
1048698Systems Method behaviors that may be important in the
future
30
HISTORY OF ASSESSMENT CENTRES
bull 1942
bull exceptional smartness
bull War Office Selection Boards
31
MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
Types of Psychological Tests
1048698 IQAchievement tests
1048698 Situational tests Situations are given and an individualrsquos behaviorresponse is observed
1048698 Psychometric tests
1048698 Personality Questionnaire
1048698 Interest Questionnaire
1048698 Values Questionnaire
32
MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
bull The Leaderless Group Discussion (LGD)bull In-basket Exercisebull Group Exercisesbull Behavioral Event Interviews
33
Difference between Assessment Centre and Development Center
34
PERFORMANCE PLANNING AND REVIEW
35
GOALS OF PERFORMANCE APPRAISAL
1048698 Each objective should be SMART ndash specific measurable agreed realistic and time-limited
1048698 Each objective must be in an area over which the employee has control
1048698 Give each objective a deadline
1048698 A clear target allows you to measure whether the employee is making the progress you expect
1048698 Provide information to assist in the HR decisions like promotions transfers etc
36
PROCESS OF PERFORMANCE APPRAISAL
bull Establishing Performance Standards
bull Communicating the Standards
37
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
bull Broadly all methods of appraisals can be divided into two different categories
bull 1048698 Past Oriented Methodsbull 1048698 Future Oriented Methods
38
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Past Oriented Methods
1 Rating Scales Rating scales consists of several numerical scales representing job related performance criterions such as dependability initiative output attendance attitude etc Each scales ranges from excellent to poor The total numerical scores are computed and final conclusions are derived
Advantages Adaptability easy to use low cost every type of job can be
evaluated large number of employees covered no formal training required
Disadvantages Raterrsquos biases
2 Checklist Under this method checklist of statements of traits of employee in the
form of Yes or No based questions is prepared Here the rater only does the
reporting or checking and HR department does the actual evaluation
Advantages Economy ease of administration limited training required
standardization
Disadvantages Raters biases use of improper weighs by HR does not allow rater
to give relative ratings
39
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
3 Forced Choice Method The series of statements arranged in the blocks of two or more are given and the rater indicates which statement is true or false The rater is forced to make a choice HR department does actual assessment
Advantages Absence of personal biases because of forced choice
Disadvantages Statements may be wrongly framed
4 Forced Distribution Method Here employees are clustered around a high point on a rating scale Rater is compelled to distribute the employees on all points on the scale It is assumed that the performance is conformed to normal distribution
Advantages Eliminates biasness
Disadvantages Assumption of normal distribution unrealistic errors of central
tendency
40
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
5 Critical Incidents Method The approach is focused on certain critical behaviors
of employee that makes all the difference in the performance Supervisors as and
when they occur record such incidents
Advantages Evaluations are based on actual job behaviors ratings are supported
by descriptions feedback is easy reduces recency biases chances of subordinate
improvement are high
Disadvantages Negative incidents can be prioritized forgetting incidents overly
close supervision feedback may be too much and may appear to be punishment
6 Behaviorally Anchored Rating Scales Statements of effective and ineffective
behaviors determine the points They are said to be behaviorally anchored The
rater is supposed to say which behavior describes the employee performance
Advantages Helps overcome rating errors
Disadvantages Suffers from distortions inherent in most rating techniques
41
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
7 Field Review Method This is an appraisal done by someone outside employeesrsquo own department usually from corporate or HR department
Advantages Useful for managerial level promotions when comparable
information is needed
Disadvantages Outsider is generally not familiar with employees work
environment Observation of actual behaviors not possible
8 Performance Tests amp Observations This is based on the test of knowledge or skills The tests may be written or an actual presentation of skills Tests must be reliable and validated to be useful
Advantages Tests may be apt to measure potential more than actual performance
Disadvantages Tests may suffer if costs of test development or administration are high
42
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Future Oriented Methods
1 Management by Objectives It means management by objectives and the
performance is rated against the achievement of objectives stated by the
management MBO process
(a) Establish goals and desired outcomes for each subordinate
(b) Setting performance standards
(c) Comparison of actual goals with goals attained by the employee
(d) Establish new goals and new strategies for goals not achieved in previous
year
43
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Future Oriented Methods
2 Psychological Appraisals
These appraisals are more directed to assess employeersquos potential for future performance rather than the past one It is done in the form of in-depth interviews psychological tests and discussion with supervisors and review of other evaluations
It is more focused on employees emotional intellectual and motivational and other personal characteristics affecting his performance This approach is slow and costly and may be useful for bright young members who may have considerable potential However quality of these appraisals largely depend upon the skills of psychologists who perform the evaluation
44
1 Leniency amp Severity
2 Central Tendency
3 Halo Effect
4 Primacy amp Recency Effect
5 Spillover Effects
6 Status Effect
Problems of RatingRating Biases
45
PERFORMANCE COACHING
The performance coaching process involves five strategies
1 Creating a partnership role To make employees realize that both employees and manger are responsible for performance and build trust amongst them
2 Commitment Inspiring employees to be committed to the goals
3 Competency development Awareness towards developing skills and
competencies required to reach to organizational goals
4 Perseverance Developing lsquonever say diersquo attitude among organizational members
5 Shaping the environment Creating conditions for employee development
46
THE COACHING DISCUSSION
Kinlawrsquos Approach
Kinlaw suggests a three-stage approach to the coaching discussion as follows
1048698 Confronting or presenting
1048698 Using reactions to develop information
1048698 Resolving or resolution
47
THE COACHING DISCUSSION
bull Fourniesrsquo Approach
bull Step 1 Get the employeersquos agreement that a problem existsbull Step 2 Mutually discuss alternative solutions to the problembull Step 3 Mutually agree on actions to be taken to solve the problembull Step 4 Follow-up to measure resultsbull Step 5 Recognize any achievement when it occurs
48
MENTORING
bull Mentorship is a process where an experienced person provides help guidance support to nurture and develop a less experienced person referred to as a proteacutegeacute apprentice mentee or (person) It improves the self esteem of mentee and increases hisher chance for success
49
MENTORING - Kinds
1048698 New-hire mentorship
1048698 High-potential mentorship
1048698 Mentorship in Education
50
POTENTIAL APPRAISAL CAREER AND SUCCESSION
PLANNING
51
POTENTIAL APPRAISAL
Purpose of Potential Appraisal
Potential appraisal serves the following purposes
1048698 To advise employees about their overall career development and future prospects
1048698 Help the organisation to chalk out succession plans
1048698 Motivate the employees to further develop their skills and competencies
1048698 To identify the training needs
52
POTENTIAL APPRAISAL
Techniques of Potential Appraisal
1048698 Self-appraisals
1048698 Peer appraisals
1048698 Superior appraisals
1048698 MBO
1048698 Psychological and psychometric tests
1048698 Management games like role playing
1048698 Leadership exercises etc
53
CAREER PLANNING
Steps in Career Planning Process
Step One Self Assessment
Step Two Goal Setting
Step Three AcademicCareer Options
Step Four Plan of Action
Step Five Catch Hold of Opportunities
54
bull Succession Planning refers to the process of developing the second line for taking up a higher role in the organization
SUCCESSION PLANNING
55
HR MEASUREMENT AND AUDIT
bull Audit helps the organization have a clear understanding of the lacunae and better align the HR processes with Business goals
bull The audit itself is a diagnostic tool not a prescriptive instrument It helps in identifying what is missing or needs to improve It is most useful when an organization is ready to act on the findings and to evolve its HR function to play a greater strategic role
56
WHY CONDUCT AN HR AUDIT
1048698 It helps promote more professionalism and professional management
1048698 HR audit helps an organization to be aware of its present practices policies
and their adherence
1048698 Benchmarking to improve HR practices
1048698 The organization can benchmark its processes with best-in-class organizations
1048698 HR audit suggest improvement measures keeping the organizational strategic goals and vision in mind
57
THE HR AUDIT PROCESS
InterviewsQuestionnaires
The audit team interviews the following
1048698 Top Management (CEO Unit Heads)
1048698 Line Managers (eg Managers in production quality purchase and marketing)
1048698 HRD Staff
1048698 Workmen and others
Observation and Recording
Follow-up and Corrections done
58
HUMAN RESOURCE ACCOUNTING
bull The American Accounting Associationrsquos Committee on Human Resource Accounting (1973) has defined Human Resource Accounting as ldquothe process of identifying and measuring data about human resources and communicating this information to interested partiesrdquo
bull It is the measurement and reporting of the cost and value of people in organizational Resources
59
METHODS OF HUMAN RESOURCE ACCOUNTING
Methods of Valuing and Accounting of Human Resources
The methods to value and account for human resources can be classified into the following categories
1 Methods based on costs (which include costs incurred by the company to recruit hire train and develop human resources)
2 Methods based on economic value of human resources and the capitalisation of companyrsquos earnings
60
HUMAN RESOURCE ACCOUNTING
Methods based on Cost
Historical Cost Method
Under this method the cost of acquisition ie selection hiring training costs of employees are capitalised and written off over the expected useful life of the employees In case the personnel leave the company before the anticipated period of service then the unamortised portion of costs remaining in the companyrsquos books is written off against the profit and loss account in that year If the period of service exceeds the anticipated time then amortisation of costs is rescheduled
Replacement Cost Method
Under this method the human resources are valued at their replacement cost ie The monetary implications of replacing existing personnel
Standard Cost Method
Under this method standard costs of recruiting hiring training and developing per grade of employees are determined annually The total standard cost for all personnel of the company is the value of human resources
61
HUMAN RESOURCE ACCOUNTING
bull HR Accounting based on Value
bull Economic Value Method
bull Under this method the net present value of incremental cash flows attributed to human resources is taken as the asset value
62
HUMAN RESOURCE INFORMATION SYSTEMS(HRIS)
bull An information system may be automated or manual and involves collectingprocessing transmitting and disseminating data that represents user information
63
HRIS ndash APPLICATION AND UTILITIES
Personnel administration It will encompass information about each employee
such as name address personal details etc
1048698 Salary administration Generate personnel cost reports conduct lsquowhat if
analysisrsquo provide compensation history
1048698 Leave and absence recording Essentially being able to provide comprehensive
method of tracking absences late coming reports on excess leave availed leave
lapsed
1048698 Skill inventory Recording of acquired skills and monitor the skill database at the
employee and organisational level
1048698 Performance appraisal The system should record individual employee
performance appraisal data such as appraisal ratings due date of appraisal
training needs identified during the appraisal process
1048698 Recruitment Record recruitment cost lead time to fill a vacant position
recruitment methods applicant and resume management
1048698 Career planning HRIS System can provide succession plan reports identifying
employees earmarked for future position
64
HRIS ndash DISADVANTAGES
May be expensive ndash financing the technology
1048698 Thorough understanding of what constitutes quality information for the user
1048698 Computer cannot substitute human beings
HUMAN RESOURCE DEVELOPMENT SYSTEM
66
HRD
HRD play a very crucial role in organization Henery Ford once said ldquotake out my building take out my machines take out all capital but leave my men with me and I will become Henry Ford againrdquo HRD is considered as key to higher productivity better relations and greater profitability for any organization
According to Daftur
ldquoHRD is a system and process concerned with an organized series of learning activities within specified time limits designed to produce behavioral changes in the learner in such a way that it acquires desired level of competence for present or future rolerdquo
67
HRDORGANIZATION ALIGNMENT MODEL
TRAINING AND DEVELOPMENT
69
NEED FOR TRAINING AND DEVELOPMENT
bull Technological advances bull Organizational complexity bull Organizational tenure bull Human relations movement
70
THE TRAINING PROCESS
71
Needs Assessment
72
bull Lecturesbull Audio Visualsbull On-the-job Training (OJT)bull Programmed Instructionbull Computer Assisted Instruction (CAI)bull Simulation
Methods and Techniques of Training
73
Training Methods for Management Development
1048698 Seminars and Conferences
1048698 Case Study
1048698 Role Playing
1048698 Management Games
1048698 Sensitivity Training
74
bull Implementation of the Training Program
bull Evaluation of Training Program
75
Kirkpatrick Model for Evaluating Effectiveness of Training Programs
1 Reactions
2 Learning
3 Behaviors
Results or Return on Investment (ROI)
76
SPECIAL TOPICS IN TRAINING ANDDEVELOPMENT
bull Cross-cultural Training
bull Orientation Training
bull Team-training and Cross-training
bull Diversity Training
COMPENSATION AND REWARDS
78
COMPENSATION OVERVIEW
Compensation is the process of directly and indirectly rewarding employees on a current or deferred basis for their performance of assigned tasks It consists of
1048698 Direct Financial Compensation Wages salaries bonuses commissions
1048698 Indirect Financial Compensation All financial rewards not included in direct compensation (benefits)
1048698 Non-financial Compensation Satisfaction received from the job or from the psychological andor physical environment of the job
JOB EVALUATION TECHNIQUE
The general step-wise procedure for job evaluation is as under
1 Select the group of jobs
2 Study the job (job analysis)
3 Prepare job description ndash approval
4 Device an evaluation plan ndash common characteristicstraits
5 Establish a committee of raters and rateevaluate
6 Group or classify the jobs
7 Convert job grades to money value along with Wage survey
8 Obtain approval from Union and Management
9 Establish a suitable grievance procedure
COMPONENTS OF COMPENSATION SYSTEM
1 Basic WagesSalaries
2 Dearness Allowance
3 Bonus
4 Commissions
5 Mixed Plans
6 Piece Rate Wages
7 Sign on Bonuses
8 Profit Sharing Payments
9 Fringe Benefits
COMPENSATION EQUITY
1048698 External Equity Employees are paid comparably to those who perform similar jobs in other industries
1048698 Internal Equity Employees are paid according to relative value of their jobs within an organisation
1048698 Employee Equity Individuals performing similar jobs for the same firm are rewarded according to factors unique to the employee such as performance level or seniority
1048698 Team Equity More productive teams receive greater rewards than less productive groups
INTERNATIONAL COMPENSATION
Elements of Expatriate Compensation
Basic Pay Amount of money that an expatriate receives from home country Used for
Bonus calculation
Benefits
1048698 One third of compensation
1048698 Extra vacation special leaves air fares for their families for an annual visit home
emergency leaves
1048698 Housing
1048698 Utilities ndash air conditioner bottled water electricity telephone call expenses
1048698 Car ndash car expenses chauffeur hired vehicle
Helping hands servants gardeners security
1048698 Club subscription
1048698 Educational benefits
Allowances
1048698 COLA ndash cost of living between home country and foreign country inflation
1048698 Relocation allowances
1048698 Hardship allowances
1048698 Separation allowances
1048698 Clothing allowances ndash very cold climates
1048698 Home leave allowances
1048698 Spouse assistance allowances
REWARDS SYSTEM
Reward System as Followed by Organisations
1 Incentive and Rewards
2 Competency Related Pay
3 Skill Based Pay
4 Team Based Rewards
5 Profit Sharing
7 Employee Ownership
8 Statutory and Voluntary Benefits
FORMS OF RECOGNITION
Examples of Formal Recognition
1 Milestone Service Anniversary Awards (5101520 25 years of service)
2 Ideas Improvement amp Performance Awards
3 Service Awards
a) Teamworkleadership
b) Customer Service
c) Citizenship
d) Innovation
e) Attendance
4 Awards would include
a) PlaquesDesk trophies
b) Certificates
c) GiftsCertificates
d) Picture in the webpage
FORMS OF RECOGNITION
Examples of Informal Recognition
1 Team Building Retreats
2 Acknowledgement of DeptDivision goals achieved
3 Project Completion meals
4 Birthday cakes and cards
5 Picnics
6 Staff Appreciation Day
7 Holiday Parties
8 Dress-up Days
9 Corporate Merchandise
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-
19
bull Quantitative Methods
bull Trend analysis and projection
bull Simulation models (probabilities of future events to estimate future employment levels)
bull Workload analysis (Both the number of employees and the kind of employees required to achieve organizational goals are identified)
bull Markov analysis
TECHNIQUES OF HR DEMAND FORECASTING
20
ATTRACTING THE TALENT RECRUITMENT
SELECTION AND OUTSOURCING
21
Internal Sources of Recruitment
1 Transfers
2 Promotions
3 Upgrading and demotion
4 Retired and retrenched employees
5 Deceased employees and disabled employees
SOURCES OF RECRUITMENT
22
External Sources of Recruitment
bull Press advertisements bull Educational institutesbull Placement agencies bull Employment exchanges bull Labour contractorsbull Unsolicited applicants bull Employee referralsrecommendations
SOURCES OF RECRUITMENT
23
THE SELECTION PROCESS
1 Pre screening
2 Initial interview
3 Reference and other checks
4 Application forms or lsquoblanksrsquo
5 Selection testing
6 Comprehensive interview
7 Job offer
8 Medical examination
24
Interviews
I Unstructured Interview
II Situational Interview
III Behavior Description Interviews
IV Comprehensive Structured Interviews
V Structured Behavioral Interview
25
PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
1048698 Unclear role of interviewer
1048698 Unprepared interviewer
1048698 Halo effect
1048698 Snap judgement
1048698 Personal biases
1048698 Ineffective communication
1048698 Contrast effect
1048698 Reflection effect
1048698 Satisfying onersquos own needs
26
bull INDUCTION
bull OUTSOURCING
27
COMPETENCY MAPPING AND ASSESSMENT CENTRES
28
Competencies
competencies are typically defined as a combination of knowledge skills abilities and other individual characteristics that can be reliably measured and that can be shown to differentiate performance
29
VARIOUS COMPETENCY MODELS
1048698Job Competencies Assessment Model interviews and
observations of outstanding and average performers
1048698Modified Job Competence Assessment Model a written account
of critical incidents (to reduce costs)
1048698Generic Model Overlay Method off-the-shelf
1048698Customized Generic Model Method tentative list of
competencies that are identified internally
1048698Flexible Job Competency Model Method under different conditions in the future
1048698Systems Method behaviors that may be important in the
future
30
HISTORY OF ASSESSMENT CENTRES
bull 1942
bull exceptional smartness
bull War Office Selection Boards
31
MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
Types of Psychological Tests
1048698 IQAchievement tests
1048698 Situational tests Situations are given and an individualrsquos behaviorresponse is observed
1048698 Psychometric tests
1048698 Personality Questionnaire
1048698 Interest Questionnaire
1048698 Values Questionnaire
32
MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
bull The Leaderless Group Discussion (LGD)bull In-basket Exercisebull Group Exercisesbull Behavioral Event Interviews
33
Difference between Assessment Centre and Development Center
34
PERFORMANCE PLANNING AND REVIEW
35
GOALS OF PERFORMANCE APPRAISAL
1048698 Each objective should be SMART ndash specific measurable agreed realistic and time-limited
1048698 Each objective must be in an area over which the employee has control
1048698 Give each objective a deadline
1048698 A clear target allows you to measure whether the employee is making the progress you expect
1048698 Provide information to assist in the HR decisions like promotions transfers etc
36
PROCESS OF PERFORMANCE APPRAISAL
bull Establishing Performance Standards
bull Communicating the Standards
37
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
bull Broadly all methods of appraisals can be divided into two different categories
bull 1048698 Past Oriented Methodsbull 1048698 Future Oriented Methods
38
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Past Oriented Methods
1 Rating Scales Rating scales consists of several numerical scales representing job related performance criterions such as dependability initiative output attendance attitude etc Each scales ranges from excellent to poor The total numerical scores are computed and final conclusions are derived
Advantages Adaptability easy to use low cost every type of job can be
evaluated large number of employees covered no formal training required
Disadvantages Raterrsquos biases
2 Checklist Under this method checklist of statements of traits of employee in the
form of Yes or No based questions is prepared Here the rater only does the
reporting or checking and HR department does the actual evaluation
Advantages Economy ease of administration limited training required
standardization
Disadvantages Raters biases use of improper weighs by HR does not allow rater
to give relative ratings
39
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
3 Forced Choice Method The series of statements arranged in the blocks of two or more are given and the rater indicates which statement is true or false The rater is forced to make a choice HR department does actual assessment
Advantages Absence of personal biases because of forced choice
Disadvantages Statements may be wrongly framed
4 Forced Distribution Method Here employees are clustered around a high point on a rating scale Rater is compelled to distribute the employees on all points on the scale It is assumed that the performance is conformed to normal distribution
Advantages Eliminates biasness
Disadvantages Assumption of normal distribution unrealistic errors of central
tendency
40
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
5 Critical Incidents Method The approach is focused on certain critical behaviors
of employee that makes all the difference in the performance Supervisors as and
when they occur record such incidents
Advantages Evaluations are based on actual job behaviors ratings are supported
by descriptions feedback is easy reduces recency biases chances of subordinate
improvement are high
Disadvantages Negative incidents can be prioritized forgetting incidents overly
close supervision feedback may be too much and may appear to be punishment
6 Behaviorally Anchored Rating Scales Statements of effective and ineffective
behaviors determine the points They are said to be behaviorally anchored The
rater is supposed to say which behavior describes the employee performance
Advantages Helps overcome rating errors
Disadvantages Suffers from distortions inherent in most rating techniques
41
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
7 Field Review Method This is an appraisal done by someone outside employeesrsquo own department usually from corporate or HR department
Advantages Useful for managerial level promotions when comparable
information is needed
Disadvantages Outsider is generally not familiar with employees work
environment Observation of actual behaviors not possible
8 Performance Tests amp Observations This is based on the test of knowledge or skills The tests may be written or an actual presentation of skills Tests must be reliable and validated to be useful
Advantages Tests may be apt to measure potential more than actual performance
Disadvantages Tests may suffer if costs of test development or administration are high
42
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Future Oriented Methods
1 Management by Objectives It means management by objectives and the
performance is rated against the achievement of objectives stated by the
management MBO process
(a) Establish goals and desired outcomes for each subordinate
(b) Setting performance standards
(c) Comparison of actual goals with goals attained by the employee
(d) Establish new goals and new strategies for goals not achieved in previous
year
43
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Future Oriented Methods
2 Psychological Appraisals
These appraisals are more directed to assess employeersquos potential for future performance rather than the past one It is done in the form of in-depth interviews psychological tests and discussion with supervisors and review of other evaluations
It is more focused on employees emotional intellectual and motivational and other personal characteristics affecting his performance This approach is slow and costly and may be useful for bright young members who may have considerable potential However quality of these appraisals largely depend upon the skills of psychologists who perform the evaluation
44
1 Leniency amp Severity
2 Central Tendency
3 Halo Effect
4 Primacy amp Recency Effect
5 Spillover Effects
6 Status Effect
Problems of RatingRating Biases
45
PERFORMANCE COACHING
The performance coaching process involves five strategies
1 Creating a partnership role To make employees realize that both employees and manger are responsible for performance and build trust amongst them
2 Commitment Inspiring employees to be committed to the goals
3 Competency development Awareness towards developing skills and
competencies required to reach to organizational goals
4 Perseverance Developing lsquonever say diersquo attitude among organizational members
5 Shaping the environment Creating conditions for employee development
46
THE COACHING DISCUSSION
Kinlawrsquos Approach
Kinlaw suggests a three-stage approach to the coaching discussion as follows
1048698 Confronting or presenting
1048698 Using reactions to develop information
1048698 Resolving or resolution
47
THE COACHING DISCUSSION
bull Fourniesrsquo Approach
bull Step 1 Get the employeersquos agreement that a problem existsbull Step 2 Mutually discuss alternative solutions to the problembull Step 3 Mutually agree on actions to be taken to solve the problembull Step 4 Follow-up to measure resultsbull Step 5 Recognize any achievement when it occurs
48
MENTORING
bull Mentorship is a process where an experienced person provides help guidance support to nurture and develop a less experienced person referred to as a proteacutegeacute apprentice mentee or (person) It improves the self esteem of mentee and increases hisher chance for success
49
MENTORING - Kinds
1048698 New-hire mentorship
1048698 High-potential mentorship
1048698 Mentorship in Education
50
POTENTIAL APPRAISAL CAREER AND SUCCESSION
PLANNING
51
POTENTIAL APPRAISAL
Purpose of Potential Appraisal
Potential appraisal serves the following purposes
1048698 To advise employees about their overall career development and future prospects
1048698 Help the organisation to chalk out succession plans
1048698 Motivate the employees to further develop their skills and competencies
1048698 To identify the training needs
52
POTENTIAL APPRAISAL
Techniques of Potential Appraisal
1048698 Self-appraisals
1048698 Peer appraisals
1048698 Superior appraisals
1048698 MBO
1048698 Psychological and psychometric tests
1048698 Management games like role playing
1048698 Leadership exercises etc
53
CAREER PLANNING
Steps in Career Planning Process
Step One Self Assessment
Step Two Goal Setting
Step Three AcademicCareer Options
Step Four Plan of Action
Step Five Catch Hold of Opportunities
54
bull Succession Planning refers to the process of developing the second line for taking up a higher role in the organization
SUCCESSION PLANNING
55
HR MEASUREMENT AND AUDIT
bull Audit helps the organization have a clear understanding of the lacunae and better align the HR processes with Business goals
bull The audit itself is a diagnostic tool not a prescriptive instrument It helps in identifying what is missing or needs to improve It is most useful when an organization is ready to act on the findings and to evolve its HR function to play a greater strategic role
56
WHY CONDUCT AN HR AUDIT
1048698 It helps promote more professionalism and professional management
1048698 HR audit helps an organization to be aware of its present practices policies
and their adherence
1048698 Benchmarking to improve HR practices
1048698 The organization can benchmark its processes with best-in-class organizations
1048698 HR audit suggest improvement measures keeping the organizational strategic goals and vision in mind
57
THE HR AUDIT PROCESS
InterviewsQuestionnaires
The audit team interviews the following
1048698 Top Management (CEO Unit Heads)
1048698 Line Managers (eg Managers in production quality purchase and marketing)
1048698 HRD Staff
1048698 Workmen and others
Observation and Recording
Follow-up and Corrections done
58
HUMAN RESOURCE ACCOUNTING
bull The American Accounting Associationrsquos Committee on Human Resource Accounting (1973) has defined Human Resource Accounting as ldquothe process of identifying and measuring data about human resources and communicating this information to interested partiesrdquo
bull It is the measurement and reporting of the cost and value of people in organizational Resources
59
METHODS OF HUMAN RESOURCE ACCOUNTING
Methods of Valuing and Accounting of Human Resources
The methods to value and account for human resources can be classified into the following categories
1 Methods based on costs (which include costs incurred by the company to recruit hire train and develop human resources)
2 Methods based on economic value of human resources and the capitalisation of companyrsquos earnings
60
HUMAN RESOURCE ACCOUNTING
Methods based on Cost
Historical Cost Method
Under this method the cost of acquisition ie selection hiring training costs of employees are capitalised and written off over the expected useful life of the employees In case the personnel leave the company before the anticipated period of service then the unamortised portion of costs remaining in the companyrsquos books is written off against the profit and loss account in that year If the period of service exceeds the anticipated time then amortisation of costs is rescheduled
Replacement Cost Method
Under this method the human resources are valued at their replacement cost ie The monetary implications of replacing existing personnel
Standard Cost Method
Under this method standard costs of recruiting hiring training and developing per grade of employees are determined annually The total standard cost for all personnel of the company is the value of human resources
61
HUMAN RESOURCE ACCOUNTING
bull HR Accounting based on Value
bull Economic Value Method
bull Under this method the net present value of incremental cash flows attributed to human resources is taken as the asset value
62
HUMAN RESOURCE INFORMATION SYSTEMS(HRIS)
bull An information system may be automated or manual and involves collectingprocessing transmitting and disseminating data that represents user information
63
HRIS ndash APPLICATION AND UTILITIES
Personnel administration It will encompass information about each employee
such as name address personal details etc
1048698 Salary administration Generate personnel cost reports conduct lsquowhat if
analysisrsquo provide compensation history
1048698 Leave and absence recording Essentially being able to provide comprehensive
method of tracking absences late coming reports on excess leave availed leave
lapsed
1048698 Skill inventory Recording of acquired skills and monitor the skill database at the
employee and organisational level
1048698 Performance appraisal The system should record individual employee
performance appraisal data such as appraisal ratings due date of appraisal
training needs identified during the appraisal process
1048698 Recruitment Record recruitment cost lead time to fill a vacant position
recruitment methods applicant and resume management
1048698 Career planning HRIS System can provide succession plan reports identifying
employees earmarked for future position
64
HRIS ndash DISADVANTAGES
May be expensive ndash financing the technology
1048698 Thorough understanding of what constitutes quality information for the user
1048698 Computer cannot substitute human beings
HUMAN RESOURCE DEVELOPMENT SYSTEM
66
HRD
HRD play a very crucial role in organization Henery Ford once said ldquotake out my building take out my machines take out all capital but leave my men with me and I will become Henry Ford againrdquo HRD is considered as key to higher productivity better relations and greater profitability for any organization
According to Daftur
ldquoHRD is a system and process concerned with an organized series of learning activities within specified time limits designed to produce behavioral changes in the learner in such a way that it acquires desired level of competence for present or future rolerdquo
67
HRDORGANIZATION ALIGNMENT MODEL
TRAINING AND DEVELOPMENT
69
NEED FOR TRAINING AND DEVELOPMENT
bull Technological advances bull Organizational complexity bull Organizational tenure bull Human relations movement
70
THE TRAINING PROCESS
71
Needs Assessment
72
bull Lecturesbull Audio Visualsbull On-the-job Training (OJT)bull Programmed Instructionbull Computer Assisted Instruction (CAI)bull Simulation
Methods and Techniques of Training
73
Training Methods for Management Development
1048698 Seminars and Conferences
1048698 Case Study
1048698 Role Playing
1048698 Management Games
1048698 Sensitivity Training
74
bull Implementation of the Training Program
bull Evaluation of Training Program
75
Kirkpatrick Model for Evaluating Effectiveness of Training Programs
1 Reactions
2 Learning
3 Behaviors
Results or Return on Investment (ROI)
76
SPECIAL TOPICS IN TRAINING ANDDEVELOPMENT
bull Cross-cultural Training
bull Orientation Training
bull Team-training and Cross-training
bull Diversity Training
COMPENSATION AND REWARDS
78
COMPENSATION OVERVIEW
Compensation is the process of directly and indirectly rewarding employees on a current or deferred basis for their performance of assigned tasks It consists of
1048698 Direct Financial Compensation Wages salaries bonuses commissions
1048698 Indirect Financial Compensation All financial rewards not included in direct compensation (benefits)
1048698 Non-financial Compensation Satisfaction received from the job or from the psychological andor physical environment of the job
JOB EVALUATION TECHNIQUE
The general step-wise procedure for job evaluation is as under
1 Select the group of jobs
2 Study the job (job analysis)
3 Prepare job description ndash approval
4 Device an evaluation plan ndash common characteristicstraits
5 Establish a committee of raters and rateevaluate
6 Group or classify the jobs
7 Convert job grades to money value along with Wage survey
8 Obtain approval from Union and Management
9 Establish a suitable grievance procedure
COMPONENTS OF COMPENSATION SYSTEM
1 Basic WagesSalaries
2 Dearness Allowance
3 Bonus
4 Commissions
5 Mixed Plans
6 Piece Rate Wages
7 Sign on Bonuses
8 Profit Sharing Payments
9 Fringe Benefits
COMPENSATION EQUITY
1048698 External Equity Employees are paid comparably to those who perform similar jobs in other industries
1048698 Internal Equity Employees are paid according to relative value of their jobs within an organisation
1048698 Employee Equity Individuals performing similar jobs for the same firm are rewarded according to factors unique to the employee such as performance level or seniority
1048698 Team Equity More productive teams receive greater rewards than less productive groups
INTERNATIONAL COMPENSATION
Elements of Expatriate Compensation
Basic Pay Amount of money that an expatriate receives from home country Used for
Bonus calculation
Benefits
1048698 One third of compensation
1048698 Extra vacation special leaves air fares for their families for an annual visit home
emergency leaves
1048698 Housing
1048698 Utilities ndash air conditioner bottled water electricity telephone call expenses
1048698 Car ndash car expenses chauffeur hired vehicle
Helping hands servants gardeners security
1048698 Club subscription
1048698 Educational benefits
Allowances
1048698 COLA ndash cost of living between home country and foreign country inflation
1048698 Relocation allowances
1048698 Hardship allowances
1048698 Separation allowances
1048698 Clothing allowances ndash very cold climates
1048698 Home leave allowances
1048698 Spouse assistance allowances
REWARDS SYSTEM
Reward System as Followed by Organisations
1 Incentive and Rewards
2 Competency Related Pay
3 Skill Based Pay
4 Team Based Rewards
5 Profit Sharing
7 Employee Ownership
8 Statutory and Voluntary Benefits
FORMS OF RECOGNITION
Examples of Formal Recognition
1 Milestone Service Anniversary Awards (5101520 25 years of service)
2 Ideas Improvement amp Performance Awards
3 Service Awards
a) Teamworkleadership
b) Customer Service
c) Citizenship
d) Innovation
e) Attendance
4 Awards would include
a) PlaquesDesk trophies
b) Certificates
c) GiftsCertificates
d) Picture in the webpage
FORMS OF RECOGNITION
Examples of Informal Recognition
1 Team Building Retreats
2 Acknowledgement of DeptDivision goals achieved
3 Project Completion meals
4 Birthday cakes and cards
5 Picnics
6 Staff Appreciation Day
7 Holiday Parties
8 Dress-up Days
9 Corporate Merchandise
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-
20
ATTRACTING THE TALENT RECRUITMENT
SELECTION AND OUTSOURCING
21
Internal Sources of Recruitment
1 Transfers
2 Promotions
3 Upgrading and demotion
4 Retired and retrenched employees
5 Deceased employees and disabled employees
SOURCES OF RECRUITMENT
22
External Sources of Recruitment
bull Press advertisements bull Educational institutesbull Placement agencies bull Employment exchanges bull Labour contractorsbull Unsolicited applicants bull Employee referralsrecommendations
SOURCES OF RECRUITMENT
23
THE SELECTION PROCESS
1 Pre screening
2 Initial interview
3 Reference and other checks
4 Application forms or lsquoblanksrsquo
5 Selection testing
6 Comprehensive interview
7 Job offer
8 Medical examination
24
Interviews
I Unstructured Interview
II Situational Interview
III Behavior Description Interviews
IV Comprehensive Structured Interviews
V Structured Behavioral Interview
25
PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
1048698 Unclear role of interviewer
1048698 Unprepared interviewer
1048698 Halo effect
1048698 Snap judgement
1048698 Personal biases
1048698 Ineffective communication
1048698 Contrast effect
1048698 Reflection effect
1048698 Satisfying onersquos own needs
26
bull INDUCTION
bull OUTSOURCING
27
COMPETENCY MAPPING AND ASSESSMENT CENTRES
28
Competencies
competencies are typically defined as a combination of knowledge skills abilities and other individual characteristics that can be reliably measured and that can be shown to differentiate performance
29
VARIOUS COMPETENCY MODELS
1048698Job Competencies Assessment Model interviews and
observations of outstanding and average performers
1048698Modified Job Competence Assessment Model a written account
of critical incidents (to reduce costs)
1048698Generic Model Overlay Method off-the-shelf
1048698Customized Generic Model Method tentative list of
competencies that are identified internally
1048698Flexible Job Competency Model Method under different conditions in the future
1048698Systems Method behaviors that may be important in the
future
30
HISTORY OF ASSESSMENT CENTRES
bull 1942
bull exceptional smartness
bull War Office Selection Boards
31
MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
Types of Psychological Tests
1048698 IQAchievement tests
1048698 Situational tests Situations are given and an individualrsquos behaviorresponse is observed
1048698 Psychometric tests
1048698 Personality Questionnaire
1048698 Interest Questionnaire
1048698 Values Questionnaire
32
MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
bull The Leaderless Group Discussion (LGD)bull In-basket Exercisebull Group Exercisesbull Behavioral Event Interviews
33
Difference between Assessment Centre and Development Center
34
PERFORMANCE PLANNING AND REVIEW
35
GOALS OF PERFORMANCE APPRAISAL
1048698 Each objective should be SMART ndash specific measurable agreed realistic and time-limited
1048698 Each objective must be in an area over which the employee has control
1048698 Give each objective a deadline
1048698 A clear target allows you to measure whether the employee is making the progress you expect
1048698 Provide information to assist in the HR decisions like promotions transfers etc
36
PROCESS OF PERFORMANCE APPRAISAL
bull Establishing Performance Standards
bull Communicating the Standards
37
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
bull Broadly all methods of appraisals can be divided into two different categories
bull 1048698 Past Oriented Methodsbull 1048698 Future Oriented Methods
38
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Past Oriented Methods
1 Rating Scales Rating scales consists of several numerical scales representing job related performance criterions such as dependability initiative output attendance attitude etc Each scales ranges from excellent to poor The total numerical scores are computed and final conclusions are derived
Advantages Adaptability easy to use low cost every type of job can be
evaluated large number of employees covered no formal training required
Disadvantages Raterrsquos biases
2 Checklist Under this method checklist of statements of traits of employee in the
form of Yes or No based questions is prepared Here the rater only does the
reporting or checking and HR department does the actual evaluation
Advantages Economy ease of administration limited training required
standardization
Disadvantages Raters biases use of improper weighs by HR does not allow rater
to give relative ratings
39
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
3 Forced Choice Method The series of statements arranged in the blocks of two or more are given and the rater indicates which statement is true or false The rater is forced to make a choice HR department does actual assessment
Advantages Absence of personal biases because of forced choice
Disadvantages Statements may be wrongly framed
4 Forced Distribution Method Here employees are clustered around a high point on a rating scale Rater is compelled to distribute the employees on all points on the scale It is assumed that the performance is conformed to normal distribution
Advantages Eliminates biasness
Disadvantages Assumption of normal distribution unrealistic errors of central
tendency
40
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
5 Critical Incidents Method The approach is focused on certain critical behaviors
of employee that makes all the difference in the performance Supervisors as and
when they occur record such incidents
Advantages Evaluations are based on actual job behaviors ratings are supported
by descriptions feedback is easy reduces recency biases chances of subordinate
improvement are high
Disadvantages Negative incidents can be prioritized forgetting incidents overly
close supervision feedback may be too much and may appear to be punishment
6 Behaviorally Anchored Rating Scales Statements of effective and ineffective
behaviors determine the points They are said to be behaviorally anchored The
rater is supposed to say which behavior describes the employee performance
Advantages Helps overcome rating errors
Disadvantages Suffers from distortions inherent in most rating techniques
41
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
7 Field Review Method This is an appraisal done by someone outside employeesrsquo own department usually from corporate or HR department
Advantages Useful for managerial level promotions when comparable
information is needed
Disadvantages Outsider is generally not familiar with employees work
environment Observation of actual behaviors not possible
8 Performance Tests amp Observations This is based on the test of knowledge or skills The tests may be written or an actual presentation of skills Tests must be reliable and validated to be useful
Advantages Tests may be apt to measure potential more than actual performance
Disadvantages Tests may suffer if costs of test development or administration are high
42
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Future Oriented Methods
1 Management by Objectives It means management by objectives and the
performance is rated against the achievement of objectives stated by the
management MBO process
(a) Establish goals and desired outcomes for each subordinate
(b) Setting performance standards
(c) Comparison of actual goals with goals attained by the employee
(d) Establish new goals and new strategies for goals not achieved in previous
year
43
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Future Oriented Methods
2 Psychological Appraisals
These appraisals are more directed to assess employeersquos potential for future performance rather than the past one It is done in the form of in-depth interviews psychological tests and discussion with supervisors and review of other evaluations
It is more focused on employees emotional intellectual and motivational and other personal characteristics affecting his performance This approach is slow and costly and may be useful for bright young members who may have considerable potential However quality of these appraisals largely depend upon the skills of psychologists who perform the evaluation
44
1 Leniency amp Severity
2 Central Tendency
3 Halo Effect
4 Primacy amp Recency Effect
5 Spillover Effects
6 Status Effect
Problems of RatingRating Biases
45
PERFORMANCE COACHING
The performance coaching process involves five strategies
1 Creating a partnership role To make employees realize that both employees and manger are responsible for performance and build trust amongst them
2 Commitment Inspiring employees to be committed to the goals
3 Competency development Awareness towards developing skills and
competencies required to reach to organizational goals
4 Perseverance Developing lsquonever say diersquo attitude among organizational members
5 Shaping the environment Creating conditions for employee development
46
THE COACHING DISCUSSION
Kinlawrsquos Approach
Kinlaw suggests a three-stage approach to the coaching discussion as follows
1048698 Confronting or presenting
1048698 Using reactions to develop information
1048698 Resolving or resolution
47
THE COACHING DISCUSSION
bull Fourniesrsquo Approach
bull Step 1 Get the employeersquos agreement that a problem existsbull Step 2 Mutually discuss alternative solutions to the problembull Step 3 Mutually agree on actions to be taken to solve the problembull Step 4 Follow-up to measure resultsbull Step 5 Recognize any achievement when it occurs
48
MENTORING
bull Mentorship is a process where an experienced person provides help guidance support to nurture and develop a less experienced person referred to as a proteacutegeacute apprentice mentee or (person) It improves the self esteem of mentee and increases hisher chance for success
49
MENTORING - Kinds
1048698 New-hire mentorship
1048698 High-potential mentorship
1048698 Mentorship in Education
50
POTENTIAL APPRAISAL CAREER AND SUCCESSION
PLANNING
51
POTENTIAL APPRAISAL
Purpose of Potential Appraisal
Potential appraisal serves the following purposes
1048698 To advise employees about their overall career development and future prospects
1048698 Help the organisation to chalk out succession plans
1048698 Motivate the employees to further develop their skills and competencies
1048698 To identify the training needs
52
POTENTIAL APPRAISAL
Techniques of Potential Appraisal
1048698 Self-appraisals
1048698 Peer appraisals
1048698 Superior appraisals
1048698 MBO
1048698 Psychological and psychometric tests
1048698 Management games like role playing
1048698 Leadership exercises etc
53
CAREER PLANNING
Steps in Career Planning Process
Step One Self Assessment
Step Two Goal Setting
Step Three AcademicCareer Options
Step Four Plan of Action
Step Five Catch Hold of Opportunities
54
bull Succession Planning refers to the process of developing the second line for taking up a higher role in the organization
SUCCESSION PLANNING
55
HR MEASUREMENT AND AUDIT
bull Audit helps the organization have a clear understanding of the lacunae and better align the HR processes with Business goals
bull The audit itself is a diagnostic tool not a prescriptive instrument It helps in identifying what is missing or needs to improve It is most useful when an organization is ready to act on the findings and to evolve its HR function to play a greater strategic role
56
WHY CONDUCT AN HR AUDIT
1048698 It helps promote more professionalism and professional management
1048698 HR audit helps an organization to be aware of its present practices policies
and their adherence
1048698 Benchmarking to improve HR practices
1048698 The organization can benchmark its processes with best-in-class organizations
1048698 HR audit suggest improvement measures keeping the organizational strategic goals and vision in mind
57
THE HR AUDIT PROCESS
InterviewsQuestionnaires
The audit team interviews the following
1048698 Top Management (CEO Unit Heads)
1048698 Line Managers (eg Managers in production quality purchase and marketing)
1048698 HRD Staff
1048698 Workmen and others
Observation and Recording
Follow-up and Corrections done
58
HUMAN RESOURCE ACCOUNTING
bull The American Accounting Associationrsquos Committee on Human Resource Accounting (1973) has defined Human Resource Accounting as ldquothe process of identifying and measuring data about human resources and communicating this information to interested partiesrdquo
bull It is the measurement and reporting of the cost and value of people in organizational Resources
59
METHODS OF HUMAN RESOURCE ACCOUNTING
Methods of Valuing and Accounting of Human Resources
The methods to value and account for human resources can be classified into the following categories
1 Methods based on costs (which include costs incurred by the company to recruit hire train and develop human resources)
2 Methods based on economic value of human resources and the capitalisation of companyrsquos earnings
60
HUMAN RESOURCE ACCOUNTING
Methods based on Cost
Historical Cost Method
Under this method the cost of acquisition ie selection hiring training costs of employees are capitalised and written off over the expected useful life of the employees In case the personnel leave the company before the anticipated period of service then the unamortised portion of costs remaining in the companyrsquos books is written off against the profit and loss account in that year If the period of service exceeds the anticipated time then amortisation of costs is rescheduled
Replacement Cost Method
Under this method the human resources are valued at their replacement cost ie The monetary implications of replacing existing personnel
Standard Cost Method
Under this method standard costs of recruiting hiring training and developing per grade of employees are determined annually The total standard cost for all personnel of the company is the value of human resources
61
HUMAN RESOURCE ACCOUNTING
bull HR Accounting based on Value
bull Economic Value Method
bull Under this method the net present value of incremental cash flows attributed to human resources is taken as the asset value
62
HUMAN RESOURCE INFORMATION SYSTEMS(HRIS)
bull An information system may be automated or manual and involves collectingprocessing transmitting and disseminating data that represents user information
63
HRIS ndash APPLICATION AND UTILITIES
Personnel administration It will encompass information about each employee
such as name address personal details etc
1048698 Salary administration Generate personnel cost reports conduct lsquowhat if
analysisrsquo provide compensation history
1048698 Leave and absence recording Essentially being able to provide comprehensive
method of tracking absences late coming reports on excess leave availed leave
lapsed
1048698 Skill inventory Recording of acquired skills and monitor the skill database at the
employee and organisational level
1048698 Performance appraisal The system should record individual employee
performance appraisal data such as appraisal ratings due date of appraisal
training needs identified during the appraisal process
1048698 Recruitment Record recruitment cost lead time to fill a vacant position
recruitment methods applicant and resume management
1048698 Career planning HRIS System can provide succession plan reports identifying
employees earmarked for future position
64
HRIS ndash DISADVANTAGES
May be expensive ndash financing the technology
1048698 Thorough understanding of what constitutes quality information for the user
1048698 Computer cannot substitute human beings
HUMAN RESOURCE DEVELOPMENT SYSTEM
66
HRD
HRD play a very crucial role in organization Henery Ford once said ldquotake out my building take out my machines take out all capital but leave my men with me and I will become Henry Ford againrdquo HRD is considered as key to higher productivity better relations and greater profitability for any organization
According to Daftur
ldquoHRD is a system and process concerned with an organized series of learning activities within specified time limits designed to produce behavioral changes in the learner in such a way that it acquires desired level of competence for present or future rolerdquo
67
HRDORGANIZATION ALIGNMENT MODEL
TRAINING AND DEVELOPMENT
69
NEED FOR TRAINING AND DEVELOPMENT
bull Technological advances bull Organizational complexity bull Organizational tenure bull Human relations movement
70
THE TRAINING PROCESS
71
Needs Assessment
72
bull Lecturesbull Audio Visualsbull On-the-job Training (OJT)bull Programmed Instructionbull Computer Assisted Instruction (CAI)bull Simulation
Methods and Techniques of Training
73
Training Methods for Management Development
1048698 Seminars and Conferences
1048698 Case Study
1048698 Role Playing
1048698 Management Games
1048698 Sensitivity Training
74
bull Implementation of the Training Program
bull Evaluation of Training Program
75
Kirkpatrick Model for Evaluating Effectiveness of Training Programs
1 Reactions
2 Learning
3 Behaviors
Results or Return on Investment (ROI)
76
SPECIAL TOPICS IN TRAINING ANDDEVELOPMENT
bull Cross-cultural Training
bull Orientation Training
bull Team-training and Cross-training
bull Diversity Training
COMPENSATION AND REWARDS
78
COMPENSATION OVERVIEW
Compensation is the process of directly and indirectly rewarding employees on a current or deferred basis for their performance of assigned tasks It consists of
1048698 Direct Financial Compensation Wages salaries bonuses commissions
1048698 Indirect Financial Compensation All financial rewards not included in direct compensation (benefits)
1048698 Non-financial Compensation Satisfaction received from the job or from the psychological andor physical environment of the job
JOB EVALUATION TECHNIQUE
The general step-wise procedure for job evaluation is as under
1 Select the group of jobs
2 Study the job (job analysis)
3 Prepare job description ndash approval
4 Device an evaluation plan ndash common characteristicstraits
5 Establish a committee of raters and rateevaluate
6 Group or classify the jobs
7 Convert job grades to money value along with Wage survey
8 Obtain approval from Union and Management
9 Establish a suitable grievance procedure
COMPONENTS OF COMPENSATION SYSTEM
1 Basic WagesSalaries
2 Dearness Allowance
3 Bonus
4 Commissions
5 Mixed Plans
6 Piece Rate Wages
7 Sign on Bonuses
8 Profit Sharing Payments
9 Fringe Benefits
COMPENSATION EQUITY
1048698 External Equity Employees are paid comparably to those who perform similar jobs in other industries
1048698 Internal Equity Employees are paid according to relative value of their jobs within an organisation
1048698 Employee Equity Individuals performing similar jobs for the same firm are rewarded according to factors unique to the employee such as performance level or seniority
1048698 Team Equity More productive teams receive greater rewards than less productive groups
INTERNATIONAL COMPENSATION
Elements of Expatriate Compensation
Basic Pay Amount of money that an expatriate receives from home country Used for
Bonus calculation
Benefits
1048698 One third of compensation
1048698 Extra vacation special leaves air fares for their families for an annual visit home
emergency leaves
1048698 Housing
1048698 Utilities ndash air conditioner bottled water electricity telephone call expenses
1048698 Car ndash car expenses chauffeur hired vehicle
Helping hands servants gardeners security
1048698 Club subscription
1048698 Educational benefits
Allowances
1048698 COLA ndash cost of living between home country and foreign country inflation
1048698 Relocation allowances
1048698 Hardship allowances
1048698 Separation allowances
1048698 Clothing allowances ndash very cold climates
1048698 Home leave allowances
1048698 Spouse assistance allowances
REWARDS SYSTEM
Reward System as Followed by Organisations
1 Incentive and Rewards
2 Competency Related Pay
3 Skill Based Pay
4 Team Based Rewards
5 Profit Sharing
7 Employee Ownership
8 Statutory and Voluntary Benefits
FORMS OF RECOGNITION
Examples of Formal Recognition
1 Milestone Service Anniversary Awards (5101520 25 years of service)
2 Ideas Improvement amp Performance Awards
3 Service Awards
a) Teamworkleadership
b) Customer Service
c) Citizenship
d) Innovation
e) Attendance
4 Awards would include
a) PlaquesDesk trophies
b) Certificates
c) GiftsCertificates
d) Picture in the webpage
FORMS OF RECOGNITION
Examples of Informal Recognition
1 Team Building Retreats
2 Acknowledgement of DeptDivision goals achieved
3 Project Completion meals
4 Birthday cakes and cards
5 Picnics
6 Staff Appreciation Day
7 Holiday Parties
8 Dress-up Days
9 Corporate Merchandise
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-
21
Internal Sources of Recruitment
1 Transfers
2 Promotions
3 Upgrading and demotion
4 Retired and retrenched employees
5 Deceased employees and disabled employees
SOURCES OF RECRUITMENT
22
External Sources of Recruitment
bull Press advertisements bull Educational institutesbull Placement agencies bull Employment exchanges bull Labour contractorsbull Unsolicited applicants bull Employee referralsrecommendations
SOURCES OF RECRUITMENT
23
THE SELECTION PROCESS
1 Pre screening
2 Initial interview
3 Reference and other checks
4 Application forms or lsquoblanksrsquo
5 Selection testing
6 Comprehensive interview
7 Job offer
8 Medical examination
24
Interviews
I Unstructured Interview
II Situational Interview
III Behavior Description Interviews
IV Comprehensive Structured Interviews
V Structured Behavioral Interview
25
PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
1048698 Unclear role of interviewer
1048698 Unprepared interviewer
1048698 Halo effect
1048698 Snap judgement
1048698 Personal biases
1048698 Ineffective communication
1048698 Contrast effect
1048698 Reflection effect
1048698 Satisfying onersquos own needs
26
bull INDUCTION
bull OUTSOURCING
27
COMPETENCY MAPPING AND ASSESSMENT CENTRES
28
Competencies
competencies are typically defined as a combination of knowledge skills abilities and other individual characteristics that can be reliably measured and that can be shown to differentiate performance
29
VARIOUS COMPETENCY MODELS
1048698Job Competencies Assessment Model interviews and
observations of outstanding and average performers
1048698Modified Job Competence Assessment Model a written account
of critical incidents (to reduce costs)
1048698Generic Model Overlay Method off-the-shelf
1048698Customized Generic Model Method tentative list of
competencies that are identified internally
1048698Flexible Job Competency Model Method under different conditions in the future
1048698Systems Method behaviors that may be important in the
future
30
HISTORY OF ASSESSMENT CENTRES
bull 1942
bull exceptional smartness
bull War Office Selection Boards
31
MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
Types of Psychological Tests
1048698 IQAchievement tests
1048698 Situational tests Situations are given and an individualrsquos behaviorresponse is observed
1048698 Psychometric tests
1048698 Personality Questionnaire
1048698 Interest Questionnaire
1048698 Values Questionnaire
32
MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
bull The Leaderless Group Discussion (LGD)bull In-basket Exercisebull Group Exercisesbull Behavioral Event Interviews
33
Difference between Assessment Centre and Development Center
34
PERFORMANCE PLANNING AND REVIEW
35
GOALS OF PERFORMANCE APPRAISAL
1048698 Each objective should be SMART ndash specific measurable agreed realistic and time-limited
1048698 Each objective must be in an area over which the employee has control
1048698 Give each objective a deadline
1048698 A clear target allows you to measure whether the employee is making the progress you expect
1048698 Provide information to assist in the HR decisions like promotions transfers etc
36
PROCESS OF PERFORMANCE APPRAISAL
bull Establishing Performance Standards
bull Communicating the Standards
37
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
bull Broadly all methods of appraisals can be divided into two different categories
bull 1048698 Past Oriented Methodsbull 1048698 Future Oriented Methods
38
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Past Oriented Methods
1 Rating Scales Rating scales consists of several numerical scales representing job related performance criterions such as dependability initiative output attendance attitude etc Each scales ranges from excellent to poor The total numerical scores are computed and final conclusions are derived
Advantages Adaptability easy to use low cost every type of job can be
evaluated large number of employees covered no formal training required
Disadvantages Raterrsquos biases
2 Checklist Under this method checklist of statements of traits of employee in the
form of Yes or No based questions is prepared Here the rater only does the
reporting or checking and HR department does the actual evaluation
Advantages Economy ease of administration limited training required
standardization
Disadvantages Raters biases use of improper weighs by HR does not allow rater
to give relative ratings
39
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
3 Forced Choice Method The series of statements arranged in the blocks of two or more are given and the rater indicates which statement is true or false The rater is forced to make a choice HR department does actual assessment
Advantages Absence of personal biases because of forced choice
Disadvantages Statements may be wrongly framed
4 Forced Distribution Method Here employees are clustered around a high point on a rating scale Rater is compelled to distribute the employees on all points on the scale It is assumed that the performance is conformed to normal distribution
Advantages Eliminates biasness
Disadvantages Assumption of normal distribution unrealistic errors of central
tendency
40
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
5 Critical Incidents Method The approach is focused on certain critical behaviors
of employee that makes all the difference in the performance Supervisors as and
when they occur record such incidents
Advantages Evaluations are based on actual job behaviors ratings are supported
by descriptions feedback is easy reduces recency biases chances of subordinate
improvement are high
Disadvantages Negative incidents can be prioritized forgetting incidents overly
close supervision feedback may be too much and may appear to be punishment
6 Behaviorally Anchored Rating Scales Statements of effective and ineffective
behaviors determine the points They are said to be behaviorally anchored The
rater is supposed to say which behavior describes the employee performance
Advantages Helps overcome rating errors
Disadvantages Suffers from distortions inherent in most rating techniques
41
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
7 Field Review Method This is an appraisal done by someone outside employeesrsquo own department usually from corporate or HR department
Advantages Useful for managerial level promotions when comparable
information is needed
Disadvantages Outsider is generally not familiar with employees work
environment Observation of actual behaviors not possible
8 Performance Tests amp Observations This is based on the test of knowledge or skills The tests may be written or an actual presentation of skills Tests must be reliable and validated to be useful
Advantages Tests may be apt to measure potential more than actual performance
Disadvantages Tests may suffer if costs of test development or administration are high
42
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Future Oriented Methods
1 Management by Objectives It means management by objectives and the
performance is rated against the achievement of objectives stated by the
management MBO process
(a) Establish goals and desired outcomes for each subordinate
(b) Setting performance standards
(c) Comparison of actual goals with goals attained by the employee
(d) Establish new goals and new strategies for goals not achieved in previous
year
43
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Future Oriented Methods
2 Psychological Appraisals
These appraisals are more directed to assess employeersquos potential for future performance rather than the past one It is done in the form of in-depth interviews psychological tests and discussion with supervisors and review of other evaluations
It is more focused on employees emotional intellectual and motivational and other personal characteristics affecting his performance This approach is slow and costly and may be useful for bright young members who may have considerable potential However quality of these appraisals largely depend upon the skills of psychologists who perform the evaluation
44
1 Leniency amp Severity
2 Central Tendency
3 Halo Effect
4 Primacy amp Recency Effect
5 Spillover Effects
6 Status Effect
Problems of RatingRating Biases
45
PERFORMANCE COACHING
The performance coaching process involves five strategies
1 Creating a partnership role To make employees realize that both employees and manger are responsible for performance and build trust amongst them
2 Commitment Inspiring employees to be committed to the goals
3 Competency development Awareness towards developing skills and
competencies required to reach to organizational goals
4 Perseverance Developing lsquonever say diersquo attitude among organizational members
5 Shaping the environment Creating conditions for employee development
46
THE COACHING DISCUSSION
Kinlawrsquos Approach
Kinlaw suggests a three-stage approach to the coaching discussion as follows
1048698 Confronting or presenting
1048698 Using reactions to develop information
1048698 Resolving or resolution
47
THE COACHING DISCUSSION
bull Fourniesrsquo Approach
bull Step 1 Get the employeersquos agreement that a problem existsbull Step 2 Mutually discuss alternative solutions to the problembull Step 3 Mutually agree on actions to be taken to solve the problembull Step 4 Follow-up to measure resultsbull Step 5 Recognize any achievement when it occurs
48
MENTORING
bull Mentorship is a process where an experienced person provides help guidance support to nurture and develop a less experienced person referred to as a proteacutegeacute apprentice mentee or (person) It improves the self esteem of mentee and increases hisher chance for success
49
MENTORING - Kinds
1048698 New-hire mentorship
1048698 High-potential mentorship
1048698 Mentorship in Education
50
POTENTIAL APPRAISAL CAREER AND SUCCESSION
PLANNING
51
POTENTIAL APPRAISAL
Purpose of Potential Appraisal
Potential appraisal serves the following purposes
1048698 To advise employees about their overall career development and future prospects
1048698 Help the organisation to chalk out succession plans
1048698 Motivate the employees to further develop their skills and competencies
1048698 To identify the training needs
52
POTENTIAL APPRAISAL
Techniques of Potential Appraisal
1048698 Self-appraisals
1048698 Peer appraisals
1048698 Superior appraisals
1048698 MBO
1048698 Psychological and psychometric tests
1048698 Management games like role playing
1048698 Leadership exercises etc
53
CAREER PLANNING
Steps in Career Planning Process
Step One Self Assessment
Step Two Goal Setting
Step Three AcademicCareer Options
Step Four Plan of Action
Step Five Catch Hold of Opportunities
54
bull Succession Planning refers to the process of developing the second line for taking up a higher role in the organization
SUCCESSION PLANNING
55
HR MEASUREMENT AND AUDIT
bull Audit helps the organization have a clear understanding of the lacunae and better align the HR processes with Business goals
bull The audit itself is a diagnostic tool not a prescriptive instrument It helps in identifying what is missing or needs to improve It is most useful when an organization is ready to act on the findings and to evolve its HR function to play a greater strategic role
56
WHY CONDUCT AN HR AUDIT
1048698 It helps promote more professionalism and professional management
1048698 HR audit helps an organization to be aware of its present practices policies
and their adherence
1048698 Benchmarking to improve HR practices
1048698 The organization can benchmark its processes with best-in-class organizations
1048698 HR audit suggest improvement measures keeping the organizational strategic goals and vision in mind
57
THE HR AUDIT PROCESS
InterviewsQuestionnaires
The audit team interviews the following
1048698 Top Management (CEO Unit Heads)
1048698 Line Managers (eg Managers in production quality purchase and marketing)
1048698 HRD Staff
1048698 Workmen and others
Observation and Recording
Follow-up and Corrections done
58
HUMAN RESOURCE ACCOUNTING
bull The American Accounting Associationrsquos Committee on Human Resource Accounting (1973) has defined Human Resource Accounting as ldquothe process of identifying and measuring data about human resources and communicating this information to interested partiesrdquo
bull It is the measurement and reporting of the cost and value of people in organizational Resources
59
METHODS OF HUMAN RESOURCE ACCOUNTING
Methods of Valuing and Accounting of Human Resources
The methods to value and account for human resources can be classified into the following categories
1 Methods based on costs (which include costs incurred by the company to recruit hire train and develop human resources)
2 Methods based on economic value of human resources and the capitalisation of companyrsquos earnings
60
HUMAN RESOURCE ACCOUNTING
Methods based on Cost
Historical Cost Method
Under this method the cost of acquisition ie selection hiring training costs of employees are capitalised and written off over the expected useful life of the employees In case the personnel leave the company before the anticipated period of service then the unamortised portion of costs remaining in the companyrsquos books is written off against the profit and loss account in that year If the period of service exceeds the anticipated time then amortisation of costs is rescheduled
Replacement Cost Method
Under this method the human resources are valued at their replacement cost ie The monetary implications of replacing existing personnel
Standard Cost Method
Under this method standard costs of recruiting hiring training and developing per grade of employees are determined annually The total standard cost for all personnel of the company is the value of human resources
61
HUMAN RESOURCE ACCOUNTING
bull HR Accounting based on Value
bull Economic Value Method
bull Under this method the net present value of incremental cash flows attributed to human resources is taken as the asset value
62
HUMAN RESOURCE INFORMATION SYSTEMS(HRIS)
bull An information system may be automated or manual and involves collectingprocessing transmitting and disseminating data that represents user information
63
HRIS ndash APPLICATION AND UTILITIES
Personnel administration It will encompass information about each employee
such as name address personal details etc
1048698 Salary administration Generate personnel cost reports conduct lsquowhat if
analysisrsquo provide compensation history
1048698 Leave and absence recording Essentially being able to provide comprehensive
method of tracking absences late coming reports on excess leave availed leave
lapsed
1048698 Skill inventory Recording of acquired skills and monitor the skill database at the
employee and organisational level
1048698 Performance appraisal The system should record individual employee
performance appraisal data such as appraisal ratings due date of appraisal
training needs identified during the appraisal process
1048698 Recruitment Record recruitment cost lead time to fill a vacant position
recruitment methods applicant and resume management
1048698 Career planning HRIS System can provide succession plan reports identifying
employees earmarked for future position
64
HRIS ndash DISADVANTAGES
May be expensive ndash financing the technology
1048698 Thorough understanding of what constitutes quality information for the user
1048698 Computer cannot substitute human beings
HUMAN RESOURCE DEVELOPMENT SYSTEM
66
HRD
HRD play a very crucial role in organization Henery Ford once said ldquotake out my building take out my machines take out all capital but leave my men with me and I will become Henry Ford againrdquo HRD is considered as key to higher productivity better relations and greater profitability for any organization
According to Daftur
ldquoHRD is a system and process concerned with an organized series of learning activities within specified time limits designed to produce behavioral changes in the learner in such a way that it acquires desired level of competence for present or future rolerdquo
67
HRDORGANIZATION ALIGNMENT MODEL
TRAINING AND DEVELOPMENT
69
NEED FOR TRAINING AND DEVELOPMENT
bull Technological advances bull Organizational complexity bull Organizational tenure bull Human relations movement
70
THE TRAINING PROCESS
71
Needs Assessment
72
bull Lecturesbull Audio Visualsbull On-the-job Training (OJT)bull Programmed Instructionbull Computer Assisted Instruction (CAI)bull Simulation
Methods and Techniques of Training
73
Training Methods for Management Development
1048698 Seminars and Conferences
1048698 Case Study
1048698 Role Playing
1048698 Management Games
1048698 Sensitivity Training
74
bull Implementation of the Training Program
bull Evaluation of Training Program
75
Kirkpatrick Model for Evaluating Effectiveness of Training Programs
1 Reactions
2 Learning
3 Behaviors
Results or Return on Investment (ROI)
76
SPECIAL TOPICS IN TRAINING ANDDEVELOPMENT
bull Cross-cultural Training
bull Orientation Training
bull Team-training and Cross-training
bull Diversity Training
COMPENSATION AND REWARDS
78
COMPENSATION OVERVIEW
Compensation is the process of directly and indirectly rewarding employees on a current or deferred basis for their performance of assigned tasks It consists of
1048698 Direct Financial Compensation Wages salaries bonuses commissions
1048698 Indirect Financial Compensation All financial rewards not included in direct compensation (benefits)
1048698 Non-financial Compensation Satisfaction received from the job or from the psychological andor physical environment of the job
JOB EVALUATION TECHNIQUE
The general step-wise procedure for job evaluation is as under
1 Select the group of jobs
2 Study the job (job analysis)
3 Prepare job description ndash approval
4 Device an evaluation plan ndash common characteristicstraits
5 Establish a committee of raters and rateevaluate
6 Group or classify the jobs
7 Convert job grades to money value along with Wage survey
8 Obtain approval from Union and Management
9 Establish a suitable grievance procedure
COMPONENTS OF COMPENSATION SYSTEM
1 Basic WagesSalaries
2 Dearness Allowance
3 Bonus
4 Commissions
5 Mixed Plans
6 Piece Rate Wages
7 Sign on Bonuses
8 Profit Sharing Payments
9 Fringe Benefits
COMPENSATION EQUITY
1048698 External Equity Employees are paid comparably to those who perform similar jobs in other industries
1048698 Internal Equity Employees are paid according to relative value of their jobs within an organisation
1048698 Employee Equity Individuals performing similar jobs for the same firm are rewarded according to factors unique to the employee such as performance level or seniority
1048698 Team Equity More productive teams receive greater rewards than less productive groups
INTERNATIONAL COMPENSATION
Elements of Expatriate Compensation
Basic Pay Amount of money that an expatriate receives from home country Used for
Bonus calculation
Benefits
1048698 One third of compensation
1048698 Extra vacation special leaves air fares for their families for an annual visit home
emergency leaves
1048698 Housing
1048698 Utilities ndash air conditioner bottled water electricity telephone call expenses
1048698 Car ndash car expenses chauffeur hired vehicle
Helping hands servants gardeners security
1048698 Club subscription
1048698 Educational benefits
Allowances
1048698 COLA ndash cost of living between home country and foreign country inflation
1048698 Relocation allowances
1048698 Hardship allowances
1048698 Separation allowances
1048698 Clothing allowances ndash very cold climates
1048698 Home leave allowances
1048698 Spouse assistance allowances
REWARDS SYSTEM
Reward System as Followed by Organisations
1 Incentive and Rewards
2 Competency Related Pay
3 Skill Based Pay
4 Team Based Rewards
5 Profit Sharing
7 Employee Ownership
8 Statutory and Voluntary Benefits
FORMS OF RECOGNITION
Examples of Formal Recognition
1 Milestone Service Anniversary Awards (5101520 25 years of service)
2 Ideas Improvement amp Performance Awards
3 Service Awards
a) Teamworkleadership
b) Customer Service
c) Citizenship
d) Innovation
e) Attendance
4 Awards would include
a) PlaquesDesk trophies
b) Certificates
c) GiftsCertificates
d) Picture in the webpage
FORMS OF RECOGNITION
Examples of Informal Recognition
1 Team Building Retreats
2 Acknowledgement of DeptDivision goals achieved
3 Project Completion meals
4 Birthday cakes and cards
5 Picnics
6 Staff Appreciation Day
7 Holiday Parties
8 Dress-up Days
9 Corporate Merchandise
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-
22
External Sources of Recruitment
bull Press advertisements bull Educational institutesbull Placement agencies bull Employment exchanges bull Labour contractorsbull Unsolicited applicants bull Employee referralsrecommendations
SOURCES OF RECRUITMENT
23
THE SELECTION PROCESS
1 Pre screening
2 Initial interview
3 Reference and other checks
4 Application forms or lsquoblanksrsquo
5 Selection testing
6 Comprehensive interview
7 Job offer
8 Medical examination
24
Interviews
I Unstructured Interview
II Situational Interview
III Behavior Description Interviews
IV Comprehensive Structured Interviews
V Structured Behavioral Interview
25
PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
1048698 Unclear role of interviewer
1048698 Unprepared interviewer
1048698 Halo effect
1048698 Snap judgement
1048698 Personal biases
1048698 Ineffective communication
1048698 Contrast effect
1048698 Reflection effect
1048698 Satisfying onersquos own needs
26
bull INDUCTION
bull OUTSOURCING
27
COMPETENCY MAPPING AND ASSESSMENT CENTRES
28
Competencies
competencies are typically defined as a combination of knowledge skills abilities and other individual characteristics that can be reliably measured and that can be shown to differentiate performance
29
VARIOUS COMPETENCY MODELS
1048698Job Competencies Assessment Model interviews and
observations of outstanding and average performers
1048698Modified Job Competence Assessment Model a written account
of critical incidents (to reduce costs)
1048698Generic Model Overlay Method off-the-shelf
1048698Customized Generic Model Method tentative list of
competencies that are identified internally
1048698Flexible Job Competency Model Method under different conditions in the future
1048698Systems Method behaviors that may be important in the
future
30
HISTORY OF ASSESSMENT CENTRES
bull 1942
bull exceptional smartness
bull War Office Selection Boards
31
MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
Types of Psychological Tests
1048698 IQAchievement tests
1048698 Situational tests Situations are given and an individualrsquos behaviorresponse is observed
1048698 Psychometric tests
1048698 Personality Questionnaire
1048698 Interest Questionnaire
1048698 Values Questionnaire
32
MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
bull The Leaderless Group Discussion (LGD)bull In-basket Exercisebull Group Exercisesbull Behavioral Event Interviews
33
Difference between Assessment Centre and Development Center
34
PERFORMANCE PLANNING AND REVIEW
35
GOALS OF PERFORMANCE APPRAISAL
1048698 Each objective should be SMART ndash specific measurable agreed realistic and time-limited
1048698 Each objective must be in an area over which the employee has control
1048698 Give each objective a deadline
1048698 A clear target allows you to measure whether the employee is making the progress you expect
1048698 Provide information to assist in the HR decisions like promotions transfers etc
36
PROCESS OF PERFORMANCE APPRAISAL
bull Establishing Performance Standards
bull Communicating the Standards
37
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
bull Broadly all methods of appraisals can be divided into two different categories
bull 1048698 Past Oriented Methodsbull 1048698 Future Oriented Methods
38
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Past Oriented Methods
1 Rating Scales Rating scales consists of several numerical scales representing job related performance criterions such as dependability initiative output attendance attitude etc Each scales ranges from excellent to poor The total numerical scores are computed and final conclusions are derived
Advantages Adaptability easy to use low cost every type of job can be
evaluated large number of employees covered no formal training required
Disadvantages Raterrsquos biases
2 Checklist Under this method checklist of statements of traits of employee in the
form of Yes or No based questions is prepared Here the rater only does the
reporting or checking and HR department does the actual evaluation
Advantages Economy ease of administration limited training required
standardization
Disadvantages Raters biases use of improper weighs by HR does not allow rater
to give relative ratings
39
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
3 Forced Choice Method The series of statements arranged in the blocks of two or more are given and the rater indicates which statement is true or false The rater is forced to make a choice HR department does actual assessment
Advantages Absence of personal biases because of forced choice
Disadvantages Statements may be wrongly framed
4 Forced Distribution Method Here employees are clustered around a high point on a rating scale Rater is compelled to distribute the employees on all points on the scale It is assumed that the performance is conformed to normal distribution
Advantages Eliminates biasness
Disadvantages Assumption of normal distribution unrealistic errors of central
tendency
40
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
5 Critical Incidents Method The approach is focused on certain critical behaviors
of employee that makes all the difference in the performance Supervisors as and
when they occur record such incidents
Advantages Evaluations are based on actual job behaviors ratings are supported
by descriptions feedback is easy reduces recency biases chances of subordinate
improvement are high
Disadvantages Negative incidents can be prioritized forgetting incidents overly
close supervision feedback may be too much and may appear to be punishment
6 Behaviorally Anchored Rating Scales Statements of effective and ineffective
behaviors determine the points They are said to be behaviorally anchored The
rater is supposed to say which behavior describes the employee performance
Advantages Helps overcome rating errors
Disadvantages Suffers from distortions inherent in most rating techniques
41
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
7 Field Review Method This is an appraisal done by someone outside employeesrsquo own department usually from corporate or HR department
Advantages Useful for managerial level promotions when comparable
information is needed
Disadvantages Outsider is generally not familiar with employees work
environment Observation of actual behaviors not possible
8 Performance Tests amp Observations This is based on the test of knowledge or skills The tests may be written or an actual presentation of skills Tests must be reliable and validated to be useful
Advantages Tests may be apt to measure potential more than actual performance
Disadvantages Tests may suffer if costs of test development or administration are high
42
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Future Oriented Methods
1 Management by Objectives It means management by objectives and the
performance is rated against the achievement of objectives stated by the
management MBO process
(a) Establish goals and desired outcomes for each subordinate
(b) Setting performance standards
(c) Comparison of actual goals with goals attained by the employee
(d) Establish new goals and new strategies for goals not achieved in previous
year
43
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Future Oriented Methods
2 Psychological Appraisals
These appraisals are more directed to assess employeersquos potential for future performance rather than the past one It is done in the form of in-depth interviews psychological tests and discussion with supervisors and review of other evaluations
It is more focused on employees emotional intellectual and motivational and other personal characteristics affecting his performance This approach is slow and costly and may be useful for bright young members who may have considerable potential However quality of these appraisals largely depend upon the skills of psychologists who perform the evaluation
44
1 Leniency amp Severity
2 Central Tendency
3 Halo Effect
4 Primacy amp Recency Effect
5 Spillover Effects
6 Status Effect
Problems of RatingRating Biases
45
PERFORMANCE COACHING
The performance coaching process involves five strategies
1 Creating a partnership role To make employees realize that both employees and manger are responsible for performance and build trust amongst them
2 Commitment Inspiring employees to be committed to the goals
3 Competency development Awareness towards developing skills and
competencies required to reach to organizational goals
4 Perseverance Developing lsquonever say diersquo attitude among organizational members
5 Shaping the environment Creating conditions for employee development
46
THE COACHING DISCUSSION
Kinlawrsquos Approach
Kinlaw suggests a three-stage approach to the coaching discussion as follows
1048698 Confronting or presenting
1048698 Using reactions to develop information
1048698 Resolving or resolution
47
THE COACHING DISCUSSION
bull Fourniesrsquo Approach
bull Step 1 Get the employeersquos agreement that a problem existsbull Step 2 Mutually discuss alternative solutions to the problembull Step 3 Mutually agree on actions to be taken to solve the problembull Step 4 Follow-up to measure resultsbull Step 5 Recognize any achievement when it occurs
48
MENTORING
bull Mentorship is a process where an experienced person provides help guidance support to nurture and develop a less experienced person referred to as a proteacutegeacute apprentice mentee or (person) It improves the self esteem of mentee and increases hisher chance for success
49
MENTORING - Kinds
1048698 New-hire mentorship
1048698 High-potential mentorship
1048698 Mentorship in Education
50
POTENTIAL APPRAISAL CAREER AND SUCCESSION
PLANNING
51
POTENTIAL APPRAISAL
Purpose of Potential Appraisal
Potential appraisal serves the following purposes
1048698 To advise employees about their overall career development and future prospects
1048698 Help the organisation to chalk out succession plans
1048698 Motivate the employees to further develop their skills and competencies
1048698 To identify the training needs
52
POTENTIAL APPRAISAL
Techniques of Potential Appraisal
1048698 Self-appraisals
1048698 Peer appraisals
1048698 Superior appraisals
1048698 MBO
1048698 Psychological and psychometric tests
1048698 Management games like role playing
1048698 Leadership exercises etc
53
CAREER PLANNING
Steps in Career Planning Process
Step One Self Assessment
Step Two Goal Setting
Step Three AcademicCareer Options
Step Four Plan of Action
Step Five Catch Hold of Opportunities
54
bull Succession Planning refers to the process of developing the second line for taking up a higher role in the organization
SUCCESSION PLANNING
55
HR MEASUREMENT AND AUDIT
bull Audit helps the organization have a clear understanding of the lacunae and better align the HR processes with Business goals
bull The audit itself is a diagnostic tool not a prescriptive instrument It helps in identifying what is missing or needs to improve It is most useful when an organization is ready to act on the findings and to evolve its HR function to play a greater strategic role
56
WHY CONDUCT AN HR AUDIT
1048698 It helps promote more professionalism and professional management
1048698 HR audit helps an organization to be aware of its present practices policies
and their adherence
1048698 Benchmarking to improve HR practices
1048698 The organization can benchmark its processes with best-in-class organizations
1048698 HR audit suggest improvement measures keeping the organizational strategic goals and vision in mind
57
THE HR AUDIT PROCESS
InterviewsQuestionnaires
The audit team interviews the following
1048698 Top Management (CEO Unit Heads)
1048698 Line Managers (eg Managers in production quality purchase and marketing)
1048698 HRD Staff
1048698 Workmen and others
Observation and Recording
Follow-up and Corrections done
58
HUMAN RESOURCE ACCOUNTING
bull The American Accounting Associationrsquos Committee on Human Resource Accounting (1973) has defined Human Resource Accounting as ldquothe process of identifying and measuring data about human resources and communicating this information to interested partiesrdquo
bull It is the measurement and reporting of the cost and value of people in organizational Resources
59
METHODS OF HUMAN RESOURCE ACCOUNTING
Methods of Valuing and Accounting of Human Resources
The methods to value and account for human resources can be classified into the following categories
1 Methods based on costs (which include costs incurred by the company to recruit hire train and develop human resources)
2 Methods based on economic value of human resources and the capitalisation of companyrsquos earnings
60
HUMAN RESOURCE ACCOUNTING
Methods based on Cost
Historical Cost Method
Under this method the cost of acquisition ie selection hiring training costs of employees are capitalised and written off over the expected useful life of the employees In case the personnel leave the company before the anticipated period of service then the unamortised portion of costs remaining in the companyrsquos books is written off against the profit and loss account in that year If the period of service exceeds the anticipated time then amortisation of costs is rescheduled
Replacement Cost Method
Under this method the human resources are valued at their replacement cost ie The monetary implications of replacing existing personnel
Standard Cost Method
Under this method standard costs of recruiting hiring training and developing per grade of employees are determined annually The total standard cost for all personnel of the company is the value of human resources
61
HUMAN RESOURCE ACCOUNTING
bull HR Accounting based on Value
bull Economic Value Method
bull Under this method the net present value of incremental cash flows attributed to human resources is taken as the asset value
62
HUMAN RESOURCE INFORMATION SYSTEMS(HRIS)
bull An information system may be automated or manual and involves collectingprocessing transmitting and disseminating data that represents user information
63
HRIS ndash APPLICATION AND UTILITIES
Personnel administration It will encompass information about each employee
such as name address personal details etc
1048698 Salary administration Generate personnel cost reports conduct lsquowhat if
analysisrsquo provide compensation history
1048698 Leave and absence recording Essentially being able to provide comprehensive
method of tracking absences late coming reports on excess leave availed leave
lapsed
1048698 Skill inventory Recording of acquired skills and monitor the skill database at the
employee and organisational level
1048698 Performance appraisal The system should record individual employee
performance appraisal data such as appraisal ratings due date of appraisal
training needs identified during the appraisal process
1048698 Recruitment Record recruitment cost lead time to fill a vacant position
recruitment methods applicant and resume management
1048698 Career planning HRIS System can provide succession plan reports identifying
employees earmarked for future position
64
HRIS ndash DISADVANTAGES
May be expensive ndash financing the technology
1048698 Thorough understanding of what constitutes quality information for the user
1048698 Computer cannot substitute human beings
HUMAN RESOURCE DEVELOPMENT SYSTEM
66
HRD
HRD play a very crucial role in organization Henery Ford once said ldquotake out my building take out my machines take out all capital but leave my men with me and I will become Henry Ford againrdquo HRD is considered as key to higher productivity better relations and greater profitability for any organization
According to Daftur
ldquoHRD is a system and process concerned with an organized series of learning activities within specified time limits designed to produce behavioral changes in the learner in such a way that it acquires desired level of competence for present or future rolerdquo
67
HRDORGANIZATION ALIGNMENT MODEL
TRAINING AND DEVELOPMENT
69
NEED FOR TRAINING AND DEVELOPMENT
bull Technological advances bull Organizational complexity bull Organizational tenure bull Human relations movement
70
THE TRAINING PROCESS
71
Needs Assessment
72
bull Lecturesbull Audio Visualsbull On-the-job Training (OJT)bull Programmed Instructionbull Computer Assisted Instruction (CAI)bull Simulation
Methods and Techniques of Training
73
Training Methods for Management Development
1048698 Seminars and Conferences
1048698 Case Study
1048698 Role Playing
1048698 Management Games
1048698 Sensitivity Training
74
bull Implementation of the Training Program
bull Evaluation of Training Program
75
Kirkpatrick Model for Evaluating Effectiveness of Training Programs
1 Reactions
2 Learning
3 Behaviors
Results or Return on Investment (ROI)
76
SPECIAL TOPICS IN TRAINING ANDDEVELOPMENT
bull Cross-cultural Training
bull Orientation Training
bull Team-training and Cross-training
bull Diversity Training
COMPENSATION AND REWARDS
78
COMPENSATION OVERVIEW
Compensation is the process of directly and indirectly rewarding employees on a current or deferred basis for their performance of assigned tasks It consists of
1048698 Direct Financial Compensation Wages salaries bonuses commissions
1048698 Indirect Financial Compensation All financial rewards not included in direct compensation (benefits)
1048698 Non-financial Compensation Satisfaction received from the job or from the psychological andor physical environment of the job
JOB EVALUATION TECHNIQUE
The general step-wise procedure for job evaluation is as under
1 Select the group of jobs
2 Study the job (job analysis)
3 Prepare job description ndash approval
4 Device an evaluation plan ndash common characteristicstraits
5 Establish a committee of raters and rateevaluate
6 Group or classify the jobs
7 Convert job grades to money value along with Wage survey
8 Obtain approval from Union and Management
9 Establish a suitable grievance procedure
COMPONENTS OF COMPENSATION SYSTEM
1 Basic WagesSalaries
2 Dearness Allowance
3 Bonus
4 Commissions
5 Mixed Plans
6 Piece Rate Wages
7 Sign on Bonuses
8 Profit Sharing Payments
9 Fringe Benefits
COMPENSATION EQUITY
1048698 External Equity Employees are paid comparably to those who perform similar jobs in other industries
1048698 Internal Equity Employees are paid according to relative value of their jobs within an organisation
1048698 Employee Equity Individuals performing similar jobs for the same firm are rewarded according to factors unique to the employee such as performance level or seniority
1048698 Team Equity More productive teams receive greater rewards than less productive groups
INTERNATIONAL COMPENSATION
Elements of Expatriate Compensation
Basic Pay Amount of money that an expatriate receives from home country Used for
Bonus calculation
Benefits
1048698 One third of compensation
1048698 Extra vacation special leaves air fares for their families for an annual visit home
emergency leaves
1048698 Housing
1048698 Utilities ndash air conditioner bottled water electricity telephone call expenses
1048698 Car ndash car expenses chauffeur hired vehicle
Helping hands servants gardeners security
1048698 Club subscription
1048698 Educational benefits
Allowances
1048698 COLA ndash cost of living between home country and foreign country inflation
1048698 Relocation allowances
1048698 Hardship allowances
1048698 Separation allowances
1048698 Clothing allowances ndash very cold climates
1048698 Home leave allowances
1048698 Spouse assistance allowances
REWARDS SYSTEM
Reward System as Followed by Organisations
1 Incentive and Rewards
2 Competency Related Pay
3 Skill Based Pay
4 Team Based Rewards
5 Profit Sharing
7 Employee Ownership
8 Statutory and Voluntary Benefits
FORMS OF RECOGNITION
Examples of Formal Recognition
1 Milestone Service Anniversary Awards (5101520 25 years of service)
2 Ideas Improvement amp Performance Awards
3 Service Awards
a) Teamworkleadership
b) Customer Service
c) Citizenship
d) Innovation
e) Attendance
4 Awards would include
a) PlaquesDesk trophies
b) Certificates
c) GiftsCertificates
d) Picture in the webpage
FORMS OF RECOGNITION
Examples of Informal Recognition
1 Team Building Retreats
2 Acknowledgement of DeptDivision goals achieved
3 Project Completion meals
4 Birthday cakes and cards
5 Picnics
6 Staff Appreciation Day
7 Holiday Parties
8 Dress-up Days
9 Corporate Merchandise
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-
23
THE SELECTION PROCESS
1 Pre screening
2 Initial interview
3 Reference and other checks
4 Application forms or lsquoblanksrsquo
5 Selection testing
6 Comprehensive interview
7 Job offer
8 Medical examination
24
Interviews
I Unstructured Interview
II Situational Interview
III Behavior Description Interviews
IV Comprehensive Structured Interviews
V Structured Behavioral Interview
25
PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
1048698 Unclear role of interviewer
1048698 Unprepared interviewer
1048698 Halo effect
1048698 Snap judgement
1048698 Personal biases
1048698 Ineffective communication
1048698 Contrast effect
1048698 Reflection effect
1048698 Satisfying onersquos own needs
26
bull INDUCTION
bull OUTSOURCING
27
COMPETENCY MAPPING AND ASSESSMENT CENTRES
28
Competencies
competencies are typically defined as a combination of knowledge skills abilities and other individual characteristics that can be reliably measured and that can be shown to differentiate performance
29
VARIOUS COMPETENCY MODELS
1048698Job Competencies Assessment Model interviews and
observations of outstanding and average performers
1048698Modified Job Competence Assessment Model a written account
of critical incidents (to reduce costs)
1048698Generic Model Overlay Method off-the-shelf
1048698Customized Generic Model Method tentative list of
competencies that are identified internally
1048698Flexible Job Competency Model Method under different conditions in the future
1048698Systems Method behaviors that may be important in the
future
30
HISTORY OF ASSESSMENT CENTRES
bull 1942
bull exceptional smartness
bull War Office Selection Boards
31
MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
Types of Psychological Tests
1048698 IQAchievement tests
1048698 Situational tests Situations are given and an individualrsquos behaviorresponse is observed
1048698 Psychometric tests
1048698 Personality Questionnaire
1048698 Interest Questionnaire
1048698 Values Questionnaire
32
MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
bull The Leaderless Group Discussion (LGD)bull In-basket Exercisebull Group Exercisesbull Behavioral Event Interviews
33
Difference between Assessment Centre and Development Center
34
PERFORMANCE PLANNING AND REVIEW
35
GOALS OF PERFORMANCE APPRAISAL
1048698 Each objective should be SMART ndash specific measurable agreed realistic and time-limited
1048698 Each objective must be in an area over which the employee has control
1048698 Give each objective a deadline
1048698 A clear target allows you to measure whether the employee is making the progress you expect
1048698 Provide information to assist in the HR decisions like promotions transfers etc
36
PROCESS OF PERFORMANCE APPRAISAL
bull Establishing Performance Standards
bull Communicating the Standards
37
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
bull Broadly all methods of appraisals can be divided into two different categories
bull 1048698 Past Oriented Methodsbull 1048698 Future Oriented Methods
38
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Past Oriented Methods
1 Rating Scales Rating scales consists of several numerical scales representing job related performance criterions such as dependability initiative output attendance attitude etc Each scales ranges from excellent to poor The total numerical scores are computed and final conclusions are derived
Advantages Adaptability easy to use low cost every type of job can be
evaluated large number of employees covered no formal training required
Disadvantages Raterrsquos biases
2 Checklist Under this method checklist of statements of traits of employee in the
form of Yes or No based questions is prepared Here the rater only does the
reporting or checking and HR department does the actual evaluation
Advantages Economy ease of administration limited training required
standardization
Disadvantages Raters biases use of improper weighs by HR does not allow rater
to give relative ratings
39
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
3 Forced Choice Method The series of statements arranged in the blocks of two or more are given and the rater indicates which statement is true or false The rater is forced to make a choice HR department does actual assessment
Advantages Absence of personal biases because of forced choice
Disadvantages Statements may be wrongly framed
4 Forced Distribution Method Here employees are clustered around a high point on a rating scale Rater is compelled to distribute the employees on all points on the scale It is assumed that the performance is conformed to normal distribution
Advantages Eliminates biasness
Disadvantages Assumption of normal distribution unrealistic errors of central
tendency
40
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
5 Critical Incidents Method The approach is focused on certain critical behaviors
of employee that makes all the difference in the performance Supervisors as and
when they occur record such incidents
Advantages Evaluations are based on actual job behaviors ratings are supported
by descriptions feedback is easy reduces recency biases chances of subordinate
improvement are high
Disadvantages Negative incidents can be prioritized forgetting incidents overly
close supervision feedback may be too much and may appear to be punishment
6 Behaviorally Anchored Rating Scales Statements of effective and ineffective
behaviors determine the points They are said to be behaviorally anchored The
rater is supposed to say which behavior describes the employee performance
Advantages Helps overcome rating errors
Disadvantages Suffers from distortions inherent in most rating techniques
41
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
7 Field Review Method This is an appraisal done by someone outside employeesrsquo own department usually from corporate or HR department
Advantages Useful for managerial level promotions when comparable
information is needed
Disadvantages Outsider is generally not familiar with employees work
environment Observation of actual behaviors not possible
8 Performance Tests amp Observations This is based on the test of knowledge or skills The tests may be written or an actual presentation of skills Tests must be reliable and validated to be useful
Advantages Tests may be apt to measure potential more than actual performance
Disadvantages Tests may suffer if costs of test development or administration are high
42
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Future Oriented Methods
1 Management by Objectives It means management by objectives and the
performance is rated against the achievement of objectives stated by the
management MBO process
(a) Establish goals and desired outcomes for each subordinate
(b) Setting performance standards
(c) Comparison of actual goals with goals attained by the employee
(d) Establish new goals and new strategies for goals not achieved in previous
year
43
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Future Oriented Methods
2 Psychological Appraisals
These appraisals are more directed to assess employeersquos potential for future performance rather than the past one It is done in the form of in-depth interviews psychological tests and discussion with supervisors and review of other evaluations
It is more focused on employees emotional intellectual and motivational and other personal characteristics affecting his performance This approach is slow and costly and may be useful for bright young members who may have considerable potential However quality of these appraisals largely depend upon the skills of psychologists who perform the evaluation
44
1 Leniency amp Severity
2 Central Tendency
3 Halo Effect
4 Primacy amp Recency Effect
5 Spillover Effects
6 Status Effect
Problems of RatingRating Biases
45
PERFORMANCE COACHING
The performance coaching process involves five strategies
1 Creating a partnership role To make employees realize that both employees and manger are responsible for performance and build trust amongst them
2 Commitment Inspiring employees to be committed to the goals
3 Competency development Awareness towards developing skills and
competencies required to reach to organizational goals
4 Perseverance Developing lsquonever say diersquo attitude among organizational members
5 Shaping the environment Creating conditions for employee development
46
THE COACHING DISCUSSION
Kinlawrsquos Approach
Kinlaw suggests a three-stage approach to the coaching discussion as follows
1048698 Confronting or presenting
1048698 Using reactions to develop information
1048698 Resolving or resolution
47
THE COACHING DISCUSSION
bull Fourniesrsquo Approach
bull Step 1 Get the employeersquos agreement that a problem existsbull Step 2 Mutually discuss alternative solutions to the problembull Step 3 Mutually agree on actions to be taken to solve the problembull Step 4 Follow-up to measure resultsbull Step 5 Recognize any achievement when it occurs
48
MENTORING
bull Mentorship is a process where an experienced person provides help guidance support to nurture and develop a less experienced person referred to as a proteacutegeacute apprentice mentee or (person) It improves the self esteem of mentee and increases hisher chance for success
49
MENTORING - Kinds
1048698 New-hire mentorship
1048698 High-potential mentorship
1048698 Mentorship in Education
50
POTENTIAL APPRAISAL CAREER AND SUCCESSION
PLANNING
51
POTENTIAL APPRAISAL
Purpose of Potential Appraisal
Potential appraisal serves the following purposes
1048698 To advise employees about their overall career development and future prospects
1048698 Help the organisation to chalk out succession plans
1048698 Motivate the employees to further develop their skills and competencies
1048698 To identify the training needs
52
POTENTIAL APPRAISAL
Techniques of Potential Appraisal
1048698 Self-appraisals
1048698 Peer appraisals
1048698 Superior appraisals
1048698 MBO
1048698 Psychological and psychometric tests
1048698 Management games like role playing
1048698 Leadership exercises etc
53
CAREER PLANNING
Steps in Career Planning Process
Step One Self Assessment
Step Two Goal Setting
Step Three AcademicCareer Options
Step Four Plan of Action
Step Five Catch Hold of Opportunities
54
bull Succession Planning refers to the process of developing the second line for taking up a higher role in the organization
SUCCESSION PLANNING
55
HR MEASUREMENT AND AUDIT
bull Audit helps the organization have a clear understanding of the lacunae and better align the HR processes with Business goals
bull The audit itself is a diagnostic tool not a prescriptive instrument It helps in identifying what is missing or needs to improve It is most useful when an organization is ready to act on the findings and to evolve its HR function to play a greater strategic role
56
WHY CONDUCT AN HR AUDIT
1048698 It helps promote more professionalism and professional management
1048698 HR audit helps an organization to be aware of its present practices policies
and their adherence
1048698 Benchmarking to improve HR practices
1048698 The organization can benchmark its processes with best-in-class organizations
1048698 HR audit suggest improvement measures keeping the organizational strategic goals and vision in mind
57
THE HR AUDIT PROCESS
InterviewsQuestionnaires
The audit team interviews the following
1048698 Top Management (CEO Unit Heads)
1048698 Line Managers (eg Managers in production quality purchase and marketing)
1048698 HRD Staff
1048698 Workmen and others
Observation and Recording
Follow-up and Corrections done
58
HUMAN RESOURCE ACCOUNTING
bull The American Accounting Associationrsquos Committee on Human Resource Accounting (1973) has defined Human Resource Accounting as ldquothe process of identifying and measuring data about human resources and communicating this information to interested partiesrdquo
bull It is the measurement and reporting of the cost and value of people in organizational Resources
59
METHODS OF HUMAN RESOURCE ACCOUNTING
Methods of Valuing and Accounting of Human Resources
The methods to value and account for human resources can be classified into the following categories
1 Methods based on costs (which include costs incurred by the company to recruit hire train and develop human resources)
2 Methods based on economic value of human resources and the capitalisation of companyrsquos earnings
60
HUMAN RESOURCE ACCOUNTING
Methods based on Cost
Historical Cost Method
Under this method the cost of acquisition ie selection hiring training costs of employees are capitalised and written off over the expected useful life of the employees In case the personnel leave the company before the anticipated period of service then the unamortised portion of costs remaining in the companyrsquos books is written off against the profit and loss account in that year If the period of service exceeds the anticipated time then amortisation of costs is rescheduled
Replacement Cost Method
Under this method the human resources are valued at their replacement cost ie The monetary implications of replacing existing personnel
Standard Cost Method
Under this method standard costs of recruiting hiring training and developing per grade of employees are determined annually The total standard cost for all personnel of the company is the value of human resources
61
HUMAN RESOURCE ACCOUNTING
bull HR Accounting based on Value
bull Economic Value Method
bull Under this method the net present value of incremental cash flows attributed to human resources is taken as the asset value
62
HUMAN RESOURCE INFORMATION SYSTEMS(HRIS)
bull An information system may be automated or manual and involves collectingprocessing transmitting and disseminating data that represents user information
63
HRIS ndash APPLICATION AND UTILITIES
Personnel administration It will encompass information about each employee
such as name address personal details etc
1048698 Salary administration Generate personnel cost reports conduct lsquowhat if
analysisrsquo provide compensation history
1048698 Leave and absence recording Essentially being able to provide comprehensive
method of tracking absences late coming reports on excess leave availed leave
lapsed
1048698 Skill inventory Recording of acquired skills and monitor the skill database at the
employee and organisational level
1048698 Performance appraisal The system should record individual employee
performance appraisal data such as appraisal ratings due date of appraisal
training needs identified during the appraisal process
1048698 Recruitment Record recruitment cost lead time to fill a vacant position
recruitment methods applicant and resume management
1048698 Career planning HRIS System can provide succession plan reports identifying
employees earmarked for future position
64
HRIS ndash DISADVANTAGES
May be expensive ndash financing the technology
1048698 Thorough understanding of what constitutes quality information for the user
1048698 Computer cannot substitute human beings
HUMAN RESOURCE DEVELOPMENT SYSTEM
66
HRD
HRD play a very crucial role in organization Henery Ford once said ldquotake out my building take out my machines take out all capital but leave my men with me and I will become Henry Ford againrdquo HRD is considered as key to higher productivity better relations and greater profitability for any organization
According to Daftur
ldquoHRD is a system and process concerned with an organized series of learning activities within specified time limits designed to produce behavioral changes in the learner in such a way that it acquires desired level of competence for present or future rolerdquo
67
HRDORGANIZATION ALIGNMENT MODEL
TRAINING AND DEVELOPMENT
69
NEED FOR TRAINING AND DEVELOPMENT
bull Technological advances bull Organizational complexity bull Organizational tenure bull Human relations movement
70
THE TRAINING PROCESS
71
Needs Assessment
72
bull Lecturesbull Audio Visualsbull On-the-job Training (OJT)bull Programmed Instructionbull Computer Assisted Instruction (CAI)bull Simulation
Methods and Techniques of Training
73
Training Methods for Management Development
1048698 Seminars and Conferences
1048698 Case Study
1048698 Role Playing
1048698 Management Games
1048698 Sensitivity Training
74
bull Implementation of the Training Program
bull Evaluation of Training Program
75
Kirkpatrick Model for Evaluating Effectiveness of Training Programs
1 Reactions
2 Learning
3 Behaviors
Results or Return on Investment (ROI)
76
SPECIAL TOPICS IN TRAINING ANDDEVELOPMENT
bull Cross-cultural Training
bull Orientation Training
bull Team-training and Cross-training
bull Diversity Training
COMPENSATION AND REWARDS
78
COMPENSATION OVERVIEW
Compensation is the process of directly and indirectly rewarding employees on a current or deferred basis for their performance of assigned tasks It consists of
1048698 Direct Financial Compensation Wages salaries bonuses commissions
1048698 Indirect Financial Compensation All financial rewards not included in direct compensation (benefits)
1048698 Non-financial Compensation Satisfaction received from the job or from the psychological andor physical environment of the job
JOB EVALUATION TECHNIQUE
The general step-wise procedure for job evaluation is as under
1 Select the group of jobs
2 Study the job (job analysis)
3 Prepare job description ndash approval
4 Device an evaluation plan ndash common characteristicstraits
5 Establish a committee of raters and rateevaluate
6 Group or classify the jobs
7 Convert job grades to money value along with Wage survey
8 Obtain approval from Union and Management
9 Establish a suitable grievance procedure
COMPONENTS OF COMPENSATION SYSTEM
1 Basic WagesSalaries
2 Dearness Allowance
3 Bonus
4 Commissions
5 Mixed Plans
6 Piece Rate Wages
7 Sign on Bonuses
8 Profit Sharing Payments
9 Fringe Benefits
COMPENSATION EQUITY
1048698 External Equity Employees are paid comparably to those who perform similar jobs in other industries
1048698 Internal Equity Employees are paid according to relative value of their jobs within an organisation
1048698 Employee Equity Individuals performing similar jobs for the same firm are rewarded according to factors unique to the employee such as performance level or seniority
1048698 Team Equity More productive teams receive greater rewards than less productive groups
INTERNATIONAL COMPENSATION
Elements of Expatriate Compensation
Basic Pay Amount of money that an expatriate receives from home country Used for
Bonus calculation
Benefits
1048698 One third of compensation
1048698 Extra vacation special leaves air fares for their families for an annual visit home
emergency leaves
1048698 Housing
1048698 Utilities ndash air conditioner bottled water electricity telephone call expenses
1048698 Car ndash car expenses chauffeur hired vehicle
Helping hands servants gardeners security
1048698 Club subscription
1048698 Educational benefits
Allowances
1048698 COLA ndash cost of living between home country and foreign country inflation
1048698 Relocation allowances
1048698 Hardship allowances
1048698 Separation allowances
1048698 Clothing allowances ndash very cold climates
1048698 Home leave allowances
1048698 Spouse assistance allowances
REWARDS SYSTEM
Reward System as Followed by Organisations
1 Incentive and Rewards
2 Competency Related Pay
3 Skill Based Pay
4 Team Based Rewards
5 Profit Sharing
7 Employee Ownership
8 Statutory and Voluntary Benefits
FORMS OF RECOGNITION
Examples of Formal Recognition
1 Milestone Service Anniversary Awards (5101520 25 years of service)
2 Ideas Improvement amp Performance Awards
3 Service Awards
a) Teamworkleadership
b) Customer Service
c) Citizenship
d) Innovation
e) Attendance
4 Awards would include
a) PlaquesDesk trophies
b) Certificates
c) GiftsCertificates
d) Picture in the webpage
FORMS OF RECOGNITION
Examples of Informal Recognition
1 Team Building Retreats
2 Acknowledgement of DeptDivision goals achieved
3 Project Completion meals
4 Birthday cakes and cards
5 Picnics
6 Staff Appreciation Day
7 Holiday Parties
8 Dress-up Days
9 Corporate Merchandise
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-
24
Interviews
I Unstructured Interview
II Situational Interview
III Behavior Description Interviews
IV Comprehensive Structured Interviews
V Structured Behavioral Interview
25
PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
1048698 Unclear role of interviewer
1048698 Unprepared interviewer
1048698 Halo effect
1048698 Snap judgement
1048698 Personal biases
1048698 Ineffective communication
1048698 Contrast effect
1048698 Reflection effect
1048698 Satisfying onersquos own needs
26
bull INDUCTION
bull OUTSOURCING
27
COMPETENCY MAPPING AND ASSESSMENT CENTRES
28
Competencies
competencies are typically defined as a combination of knowledge skills abilities and other individual characteristics that can be reliably measured and that can be shown to differentiate performance
29
VARIOUS COMPETENCY MODELS
1048698Job Competencies Assessment Model interviews and
observations of outstanding and average performers
1048698Modified Job Competence Assessment Model a written account
of critical incidents (to reduce costs)
1048698Generic Model Overlay Method off-the-shelf
1048698Customized Generic Model Method tentative list of
competencies that are identified internally
1048698Flexible Job Competency Model Method under different conditions in the future
1048698Systems Method behaviors that may be important in the
future
30
HISTORY OF ASSESSMENT CENTRES
bull 1942
bull exceptional smartness
bull War Office Selection Boards
31
MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
Types of Psychological Tests
1048698 IQAchievement tests
1048698 Situational tests Situations are given and an individualrsquos behaviorresponse is observed
1048698 Psychometric tests
1048698 Personality Questionnaire
1048698 Interest Questionnaire
1048698 Values Questionnaire
32
MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
bull The Leaderless Group Discussion (LGD)bull In-basket Exercisebull Group Exercisesbull Behavioral Event Interviews
33
Difference between Assessment Centre and Development Center
34
PERFORMANCE PLANNING AND REVIEW
35
GOALS OF PERFORMANCE APPRAISAL
1048698 Each objective should be SMART ndash specific measurable agreed realistic and time-limited
1048698 Each objective must be in an area over which the employee has control
1048698 Give each objective a deadline
1048698 A clear target allows you to measure whether the employee is making the progress you expect
1048698 Provide information to assist in the HR decisions like promotions transfers etc
36
PROCESS OF PERFORMANCE APPRAISAL
bull Establishing Performance Standards
bull Communicating the Standards
37
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
bull Broadly all methods of appraisals can be divided into two different categories
bull 1048698 Past Oriented Methodsbull 1048698 Future Oriented Methods
38
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Past Oriented Methods
1 Rating Scales Rating scales consists of several numerical scales representing job related performance criterions such as dependability initiative output attendance attitude etc Each scales ranges from excellent to poor The total numerical scores are computed and final conclusions are derived
Advantages Adaptability easy to use low cost every type of job can be
evaluated large number of employees covered no formal training required
Disadvantages Raterrsquos biases
2 Checklist Under this method checklist of statements of traits of employee in the
form of Yes or No based questions is prepared Here the rater only does the
reporting or checking and HR department does the actual evaluation
Advantages Economy ease of administration limited training required
standardization
Disadvantages Raters biases use of improper weighs by HR does not allow rater
to give relative ratings
39
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
3 Forced Choice Method The series of statements arranged in the blocks of two or more are given and the rater indicates which statement is true or false The rater is forced to make a choice HR department does actual assessment
Advantages Absence of personal biases because of forced choice
Disadvantages Statements may be wrongly framed
4 Forced Distribution Method Here employees are clustered around a high point on a rating scale Rater is compelled to distribute the employees on all points on the scale It is assumed that the performance is conformed to normal distribution
Advantages Eliminates biasness
Disadvantages Assumption of normal distribution unrealistic errors of central
tendency
40
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
5 Critical Incidents Method The approach is focused on certain critical behaviors
of employee that makes all the difference in the performance Supervisors as and
when they occur record such incidents
Advantages Evaluations are based on actual job behaviors ratings are supported
by descriptions feedback is easy reduces recency biases chances of subordinate
improvement are high
Disadvantages Negative incidents can be prioritized forgetting incidents overly
close supervision feedback may be too much and may appear to be punishment
6 Behaviorally Anchored Rating Scales Statements of effective and ineffective
behaviors determine the points They are said to be behaviorally anchored The
rater is supposed to say which behavior describes the employee performance
Advantages Helps overcome rating errors
Disadvantages Suffers from distortions inherent in most rating techniques
41
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
7 Field Review Method This is an appraisal done by someone outside employeesrsquo own department usually from corporate or HR department
Advantages Useful for managerial level promotions when comparable
information is needed
Disadvantages Outsider is generally not familiar with employees work
environment Observation of actual behaviors not possible
8 Performance Tests amp Observations This is based on the test of knowledge or skills The tests may be written or an actual presentation of skills Tests must be reliable and validated to be useful
Advantages Tests may be apt to measure potential more than actual performance
Disadvantages Tests may suffer if costs of test development or administration are high
42
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Future Oriented Methods
1 Management by Objectives It means management by objectives and the
performance is rated against the achievement of objectives stated by the
management MBO process
(a) Establish goals and desired outcomes for each subordinate
(b) Setting performance standards
(c) Comparison of actual goals with goals attained by the employee
(d) Establish new goals and new strategies for goals not achieved in previous
year
43
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Future Oriented Methods
2 Psychological Appraisals
These appraisals are more directed to assess employeersquos potential for future performance rather than the past one It is done in the form of in-depth interviews psychological tests and discussion with supervisors and review of other evaluations
It is more focused on employees emotional intellectual and motivational and other personal characteristics affecting his performance This approach is slow and costly and may be useful for bright young members who may have considerable potential However quality of these appraisals largely depend upon the skills of psychologists who perform the evaluation
44
1 Leniency amp Severity
2 Central Tendency
3 Halo Effect
4 Primacy amp Recency Effect
5 Spillover Effects
6 Status Effect
Problems of RatingRating Biases
45
PERFORMANCE COACHING
The performance coaching process involves five strategies
1 Creating a partnership role To make employees realize that both employees and manger are responsible for performance and build trust amongst them
2 Commitment Inspiring employees to be committed to the goals
3 Competency development Awareness towards developing skills and
competencies required to reach to organizational goals
4 Perseverance Developing lsquonever say diersquo attitude among organizational members
5 Shaping the environment Creating conditions for employee development
46
THE COACHING DISCUSSION
Kinlawrsquos Approach
Kinlaw suggests a three-stage approach to the coaching discussion as follows
1048698 Confronting or presenting
1048698 Using reactions to develop information
1048698 Resolving or resolution
47
THE COACHING DISCUSSION
bull Fourniesrsquo Approach
bull Step 1 Get the employeersquos agreement that a problem existsbull Step 2 Mutually discuss alternative solutions to the problembull Step 3 Mutually agree on actions to be taken to solve the problembull Step 4 Follow-up to measure resultsbull Step 5 Recognize any achievement when it occurs
48
MENTORING
bull Mentorship is a process where an experienced person provides help guidance support to nurture and develop a less experienced person referred to as a proteacutegeacute apprentice mentee or (person) It improves the self esteem of mentee and increases hisher chance for success
49
MENTORING - Kinds
1048698 New-hire mentorship
1048698 High-potential mentorship
1048698 Mentorship in Education
50
POTENTIAL APPRAISAL CAREER AND SUCCESSION
PLANNING
51
POTENTIAL APPRAISAL
Purpose of Potential Appraisal
Potential appraisal serves the following purposes
1048698 To advise employees about their overall career development and future prospects
1048698 Help the organisation to chalk out succession plans
1048698 Motivate the employees to further develop their skills and competencies
1048698 To identify the training needs
52
POTENTIAL APPRAISAL
Techniques of Potential Appraisal
1048698 Self-appraisals
1048698 Peer appraisals
1048698 Superior appraisals
1048698 MBO
1048698 Psychological and psychometric tests
1048698 Management games like role playing
1048698 Leadership exercises etc
53
CAREER PLANNING
Steps in Career Planning Process
Step One Self Assessment
Step Two Goal Setting
Step Three AcademicCareer Options
Step Four Plan of Action
Step Five Catch Hold of Opportunities
54
bull Succession Planning refers to the process of developing the second line for taking up a higher role in the organization
SUCCESSION PLANNING
55
HR MEASUREMENT AND AUDIT
bull Audit helps the organization have a clear understanding of the lacunae and better align the HR processes with Business goals
bull The audit itself is a diagnostic tool not a prescriptive instrument It helps in identifying what is missing or needs to improve It is most useful when an organization is ready to act on the findings and to evolve its HR function to play a greater strategic role
56
WHY CONDUCT AN HR AUDIT
1048698 It helps promote more professionalism and professional management
1048698 HR audit helps an organization to be aware of its present practices policies
and their adherence
1048698 Benchmarking to improve HR practices
1048698 The organization can benchmark its processes with best-in-class organizations
1048698 HR audit suggest improvement measures keeping the organizational strategic goals and vision in mind
57
THE HR AUDIT PROCESS
InterviewsQuestionnaires
The audit team interviews the following
1048698 Top Management (CEO Unit Heads)
1048698 Line Managers (eg Managers in production quality purchase and marketing)
1048698 HRD Staff
1048698 Workmen and others
Observation and Recording
Follow-up and Corrections done
58
HUMAN RESOURCE ACCOUNTING
bull The American Accounting Associationrsquos Committee on Human Resource Accounting (1973) has defined Human Resource Accounting as ldquothe process of identifying and measuring data about human resources and communicating this information to interested partiesrdquo
bull It is the measurement and reporting of the cost and value of people in organizational Resources
59
METHODS OF HUMAN RESOURCE ACCOUNTING
Methods of Valuing and Accounting of Human Resources
The methods to value and account for human resources can be classified into the following categories
1 Methods based on costs (which include costs incurred by the company to recruit hire train and develop human resources)
2 Methods based on economic value of human resources and the capitalisation of companyrsquos earnings
60
HUMAN RESOURCE ACCOUNTING
Methods based on Cost
Historical Cost Method
Under this method the cost of acquisition ie selection hiring training costs of employees are capitalised and written off over the expected useful life of the employees In case the personnel leave the company before the anticipated period of service then the unamortised portion of costs remaining in the companyrsquos books is written off against the profit and loss account in that year If the period of service exceeds the anticipated time then amortisation of costs is rescheduled
Replacement Cost Method
Under this method the human resources are valued at their replacement cost ie The monetary implications of replacing existing personnel
Standard Cost Method
Under this method standard costs of recruiting hiring training and developing per grade of employees are determined annually The total standard cost for all personnel of the company is the value of human resources
61
HUMAN RESOURCE ACCOUNTING
bull HR Accounting based on Value
bull Economic Value Method
bull Under this method the net present value of incremental cash flows attributed to human resources is taken as the asset value
62
HUMAN RESOURCE INFORMATION SYSTEMS(HRIS)
bull An information system may be automated or manual and involves collectingprocessing transmitting and disseminating data that represents user information
63
HRIS ndash APPLICATION AND UTILITIES
Personnel administration It will encompass information about each employee
such as name address personal details etc
1048698 Salary administration Generate personnel cost reports conduct lsquowhat if
analysisrsquo provide compensation history
1048698 Leave and absence recording Essentially being able to provide comprehensive
method of tracking absences late coming reports on excess leave availed leave
lapsed
1048698 Skill inventory Recording of acquired skills and monitor the skill database at the
employee and organisational level
1048698 Performance appraisal The system should record individual employee
performance appraisal data such as appraisal ratings due date of appraisal
training needs identified during the appraisal process
1048698 Recruitment Record recruitment cost lead time to fill a vacant position
recruitment methods applicant and resume management
1048698 Career planning HRIS System can provide succession plan reports identifying
employees earmarked for future position
64
HRIS ndash DISADVANTAGES
May be expensive ndash financing the technology
1048698 Thorough understanding of what constitutes quality information for the user
1048698 Computer cannot substitute human beings
HUMAN RESOURCE DEVELOPMENT SYSTEM
66
HRD
HRD play a very crucial role in organization Henery Ford once said ldquotake out my building take out my machines take out all capital but leave my men with me and I will become Henry Ford againrdquo HRD is considered as key to higher productivity better relations and greater profitability for any organization
According to Daftur
ldquoHRD is a system and process concerned with an organized series of learning activities within specified time limits designed to produce behavioral changes in the learner in such a way that it acquires desired level of competence for present or future rolerdquo
67
HRDORGANIZATION ALIGNMENT MODEL
TRAINING AND DEVELOPMENT
69
NEED FOR TRAINING AND DEVELOPMENT
bull Technological advances bull Organizational complexity bull Organizational tenure bull Human relations movement
70
THE TRAINING PROCESS
71
Needs Assessment
72
bull Lecturesbull Audio Visualsbull On-the-job Training (OJT)bull Programmed Instructionbull Computer Assisted Instruction (CAI)bull Simulation
Methods and Techniques of Training
73
Training Methods for Management Development
1048698 Seminars and Conferences
1048698 Case Study
1048698 Role Playing
1048698 Management Games
1048698 Sensitivity Training
74
bull Implementation of the Training Program
bull Evaluation of Training Program
75
Kirkpatrick Model for Evaluating Effectiveness of Training Programs
1 Reactions
2 Learning
3 Behaviors
Results or Return on Investment (ROI)
76
SPECIAL TOPICS IN TRAINING ANDDEVELOPMENT
bull Cross-cultural Training
bull Orientation Training
bull Team-training and Cross-training
bull Diversity Training
COMPENSATION AND REWARDS
78
COMPENSATION OVERVIEW
Compensation is the process of directly and indirectly rewarding employees on a current or deferred basis for their performance of assigned tasks It consists of
1048698 Direct Financial Compensation Wages salaries bonuses commissions
1048698 Indirect Financial Compensation All financial rewards not included in direct compensation (benefits)
1048698 Non-financial Compensation Satisfaction received from the job or from the psychological andor physical environment of the job
JOB EVALUATION TECHNIQUE
The general step-wise procedure for job evaluation is as under
1 Select the group of jobs
2 Study the job (job analysis)
3 Prepare job description ndash approval
4 Device an evaluation plan ndash common characteristicstraits
5 Establish a committee of raters and rateevaluate
6 Group or classify the jobs
7 Convert job grades to money value along with Wage survey
8 Obtain approval from Union and Management
9 Establish a suitable grievance procedure
COMPONENTS OF COMPENSATION SYSTEM
1 Basic WagesSalaries
2 Dearness Allowance
3 Bonus
4 Commissions
5 Mixed Plans
6 Piece Rate Wages
7 Sign on Bonuses
8 Profit Sharing Payments
9 Fringe Benefits
COMPENSATION EQUITY
1048698 External Equity Employees are paid comparably to those who perform similar jobs in other industries
1048698 Internal Equity Employees are paid according to relative value of their jobs within an organisation
1048698 Employee Equity Individuals performing similar jobs for the same firm are rewarded according to factors unique to the employee such as performance level or seniority
1048698 Team Equity More productive teams receive greater rewards than less productive groups
INTERNATIONAL COMPENSATION
Elements of Expatriate Compensation
Basic Pay Amount of money that an expatriate receives from home country Used for
Bonus calculation
Benefits
1048698 One third of compensation
1048698 Extra vacation special leaves air fares for their families for an annual visit home
emergency leaves
1048698 Housing
1048698 Utilities ndash air conditioner bottled water electricity telephone call expenses
1048698 Car ndash car expenses chauffeur hired vehicle
Helping hands servants gardeners security
1048698 Club subscription
1048698 Educational benefits
Allowances
1048698 COLA ndash cost of living between home country and foreign country inflation
1048698 Relocation allowances
1048698 Hardship allowances
1048698 Separation allowances
1048698 Clothing allowances ndash very cold climates
1048698 Home leave allowances
1048698 Spouse assistance allowances
REWARDS SYSTEM
Reward System as Followed by Organisations
1 Incentive and Rewards
2 Competency Related Pay
3 Skill Based Pay
4 Team Based Rewards
5 Profit Sharing
7 Employee Ownership
8 Statutory and Voluntary Benefits
FORMS OF RECOGNITION
Examples of Formal Recognition
1 Milestone Service Anniversary Awards (5101520 25 years of service)
2 Ideas Improvement amp Performance Awards
3 Service Awards
a) Teamworkleadership
b) Customer Service
c) Citizenship
d) Innovation
e) Attendance
4 Awards would include
a) PlaquesDesk trophies
b) Certificates
c) GiftsCertificates
d) Picture in the webpage
FORMS OF RECOGNITION
Examples of Informal Recognition
1 Team Building Retreats
2 Acknowledgement of DeptDivision goals achieved
3 Project Completion meals
4 Birthday cakes and cards
5 Picnics
6 Staff Appreciation Day
7 Holiday Parties
8 Dress-up Days
9 Corporate Merchandise
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-
25
PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
1048698 Unclear role of interviewer
1048698 Unprepared interviewer
1048698 Halo effect
1048698 Snap judgement
1048698 Personal biases
1048698 Ineffective communication
1048698 Contrast effect
1048698 Reflection effect
1048698 Satisfying onersquos own needs
26
bull INDUCTION
bull OUTSOURCING
27
COMPETENCY MAPPING AND ASSESSMENT CENTRES
28
Competencies
competencies are typically defined as a combination of knowledge skills abilities and other individual characteristics that can be reliably measured and that can be shown to differentiate performance
29
VARIOUS COMPETENCY MODELS
1048698Job Competencies Assessment Model interviews and
observations of outstanding and average performers
1048698Modified Job Competence Assessment Model a written account
of critical incidents (to reduce costs)
1048698Generic Model Overlay Method off-the-shelf
1048698Customized Generic Model Method tentative list of
competencies that are identified internally
1048698Flexible Job Competency Model Method under different conditions in the future
1048698Systems Method behaviors that may be important in the
future
30
HISTORY OF ASSESSMENT CENTRES
bull 1942
bull exceptional smartness
bull War Office Selection Boards
31
MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
Types of Psychological Tests
1048698 IQAchievement tests
1048698 Situational tests Situations are given and an individualrsquos behaviorresponse is observed
1048698 Psychometric tests
1048698 Personality Questionnaire
1048698 Interest Questionnaire
1048698 Values Questionnaire
32
MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
bull The Leaderless Group Discussion (LGD)bull In-basket Exercisebull Group Exercisesbull Behavioral Event Interviews
33
Difference between Assessment Centre and Development Center
34
PERFORMANCE PLANNING AND REVIEW
35
GOALS OF PERFORMANCE APPRAISAL
1048698 Each objective should be SMART ndash specific measurable agreed realistic and time-limited
1048698 Each objective must be in an area over which the employee has control
1048698 Give each objective a deadline
1048698 A clear target allows you to measure whether the employee is making the progress you expect
1048698 Provide information to assist in the HR decisions like promotions transfers etc
36
PROCESS OF PERFORMANCE APPRAISAL
bull Establishing Performance Standards
bull Communicating the Standards
37
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
bull Broadly all methods of appraisals can be divided into two different categories
bull 1048698 Past Oriented Methodsbull 1048698 Future Oriented Methods
38
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Past Oriented Methods
1 Rating Scales Rating scales consists of several numerical scales representing job related performance criterions such as dependability initiative output attendance attitude etc Each scales ranges from excellent to poor The total numerical scores are computed and final conclusions are derived
Advantages Adaptability easy to use low cost every type of job can be
evaluated large number of employees covered no formal training required
Disadvantages Raterrsquos biases
2 Checklist Under this method checklist of statements of traits of employee in the
form of Yes or No based questions is prepared Here the rater only does the
reporting or checking and HR department does the actual evaluation
Advantages Economy ease of administration limited training required
standardization
Disadvantages Raters biases use of improper weighs by HR does not allow rater
to give relative ratings
39
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
3 Forced Choice Method The series of statements arranged in the blocks of two or more are given and the rater indicates which statement is true or false The rater is forced to make a choice HR department does actual assessment
Advantages Absence of personal biases because of forced choice
Disadvantages Statements may be wrongly framed
4 Forced Distribution Method Here employees are clustered around a high point on a rating scale Rater is compelled to distribute the employees on all points on the scale It is assumed that the performance is conformed to normal distribution
Advantages Eliminates biasness
Disadvantages Assumption of normal distribution unrealistic errors of central
tendency
40
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
5 Critical Incidents Method The approach is focused on certain critical behaviors
of employee that makes all the difference in the performance Supervisors as and
when they occur record such incidents
Advantages Evaluations are based on actual job behaviors ratings are supported
by descriptions feedback is easy reduces recency biases chances of subordinate
improvement are high
Disadvantages Negative incidents can be prioritized forgetting incidents overly
close supervision feedback may be too much and may appear to be punishment
6 Behaviorally Anchored Rating Scales Statements of effective and ineffective
behaviors determine the points They are said to be behaviorally anchored The
rater is supposed to say which behavior describes the employee performance
Advantages Helps overcome rating errors
Disadvantages Suffers from distortions inherent in most rating techniques
41
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
7 Field Review Method This is an appraisal done by someone outside employeesrsquo own department usually from corporate or HR department
Advantages Useful for managerial level promotions when comparable
information is needed
Disadvantages Outsider is generally not familiar with employees work
environment Observation of actual behaviors not possible
8 Performance Tests amp Observations This is based on the test of knowledge or skills The tests may be written or an actual presentation of skills Tests must be reliable and validated to be useful
Advantages Tests may be apt to measure potential more than actual performance
Disadvantages Tests may suffer if costs of test development or administration are high
42
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Future Oriented Methods
1 Management by Objectives It means management by objectives and the
performance is rated against the achievement of objectives stated by the
management MBO process
(a) Establish goals and desired outcomes for each subordinate
(b) Setting performance standards
(c) Comparison of actual goals with goals attained by the employee
(d) Establish new goals and new strategies for goals not achieved in previous
year
43
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Future Oriented Methods
2 Psychological Appraisals
These appraisals are more directed to assess employeersquos potential for future performance rather than the past one It is done in the form of in-depth interviews psychological tests and discussion with supervisors and review of other evaluations
It is more focused on employees emotional intellectual and motivational and other personal characteristics affecting his performance This approach is slow and costly and may be useful for bright young members who may have considerable potential However quality of these appraisals largely depend upon the skills of psychologists who perform the evaluation
44
1 Leniency amp Severity
2 Central Tendency
3 Halo Effect
4 Primacy amp Recency Effect
5 Spillover Effects
6 Status Effect
Problems of RatingRating Biases
45
PERFORMANCE COACHING
The performance coaching process involves five strategies
1 Creating a partnership role To make employees realize that both employees and manger are responsible for performance and build trust amongst them
2 Commitment Inspiring employees to be committed to the goals
3 Competency development Awareness towards developing skills and
competencies required to reach to organizational goals
4 Perseverance Developing lsquonever say diersquo attitude among organizational members
5 Shaping the environment Creating conditions for employee development
46
THE COACHING DISCUSSION
Kinlawrsquos Approach
Kinlaw suggests a three-stage approach to the coaching discussion as follows
1048698 Confronting or presenting
1048698 Using reactions to develop information
1048698 Resolving or resolution
47
THE COACHING DISCUSSION
bull Fourniesrsquo Approach
bull Step 1 Get the employeersquos agreement that a problem existsbull Step 2 Mutually discuss alternative solutions to the problembull Step 3 Mutually agree on actions to be taken to solve the problembull Step 4 Follow-up to measure resultsbull Step 5 Recognize any achievement when it occurs
48
MENTORING
bull Mentorship is a process where an experienced person provides help guidance support to nurture and develop a less experienced person referred to as a proteacutegeacute apprentice mentee or (person) It improves the self esteem of mentee and increases hisher chance for success
49
MENTORING - Kinds
1048698 New-hire mentorship
1048698 High-potential mentorship
1048698 Mentorship in Education
50
POTENTIAL APPRAISAL CAREER AND SUCCESSION
PLANNING
51
POTENTIAL APPRAISAL
Purpose of Potential Appraisal
Potential appraisal serves the following purposes
1048698 To advise employees about their overall career development and future prospects
1048698 Help the organisation to chalk out succession plans
1048698 Motivate the employees to further develop their skills and competencies
1048698 To identify the training needs
52
POTENTIAL APPRAISAL
Techniques of Potential Appraisal
1048698 Self-appraisals
1048698 Peer appraisals
1048698 Superior appraisals
1048698 MBO
1048698 Psychological and psychometric tests
1048698 Management games like role playing
1048698 Leadership exercises etc
53
CAREER PLANNING
Steps in Career Planning Process
Step One Self Assessment
Step Two Goal Setting
Step Three AcademicCareer Options
Step Four Plan of Action
Step Five Catch Hold of Opportunities
54
bull Succession Planning refers to the process of developing the second line for taking up a higher role in the organization
SUCCESSION PLANNING
55
HR MEASUREMENT AND AUDIT
bull Audit helps the organization have a clear understanding of the lacunae and better align the HR processes with Business goals
bull The audit itself is a diagnostic tool not a prescriptive instrument It helps in identifying what is missing or needs to improve It is most useful when an organization is ready to act on the findings and to evolve its HR function to play a greater strategic role
56
WHY CONDUCT AN HR AUDIT
1048698 It helps promote more professionalism and professional management
1048698 HR audit helps an organization to be aware of its present practices policies
and their adherence
1048698 Benchmarking to improve HR practices
1048698 The organization can benchmark its processes with best-in-class organizations
1048698 HR audit suggest improvement measures keeping the organizational strategic goals and vision in mind
57
THE HR AUDIT PROCESS
InterviewsQuestionnaires
The audit team interviews the following
1048698 Top Management (CEO Unit Heads)
1048698 Line Managers (eg Managers in production quality purchase and marketing)
1048698 HRD Staff
1048698 Workmen and others
Observation and Recording
Follow-up and Corrections done
58
HUMAN RESOURCE ACCOUNTING
bull The American Accounting Associationrsquos Committee on Human Resource Accounting (1973) has defined Human Resource Accounting as ldquothe process of identifying and measuring data about human resources and communicating this information to interested partiesrdquo
bull It is the measurement and reporting of the cost and value of people in organizational Resources
59
METHODS OF HUMAN RESOURCE ACCOUNTING
Methods of Valuing and Accounting of Human Resources
The methods to value and account for human resources can be classified into the following categories
1 Methods based on costs (which include costs incurred by the company to recruit hire train and develop human resources)
2 Methods based on economic value of human resources and the capitalisation of companyrsquos earnings
60
HUMAN RESOURCE ACCOUNTING
Methods based on Cost
Historical Cost Method
Under this method the cost of acquisition ie selection hiring training costs of employees are capitalised and written off over the expected useful life of the employees In case the personnel leave the company before the anticipated period of service then the unamortised portion of costs remaining in the companyrsquos books is written off against the profit and loss account in that year If the period of service exceeds the anticipated time then amortisation of costs is rescheduled
Replacement Cost Method
Under this method the human resources are valued at their replacement cost ie The monetary implications of replacing existing personnel
Standard Cost Method
Under this method standard costs of recruiting hiring training and developing per grade of employees are determined annually The total standard cost for all personnel of the company is the value of human resources
61
HUMAN RESOURCE ACCOUNTING
bull HR Accounting based on Value
bull Economic Value Method
bull Under this method the net present value of incremental cash flows attributed to human resources is taken as the asset value
62
HUMAN RESOURCE INFORMATION SYSTEMS(HRIS)
bull An information system may be automated or manual and involves collectingprocessing transmitting and disseminating data that represents user information
63
HRIS ndash APPLICATION AND UTILITIES
Personnel administration It will encompass information about each employee
such as name address personal details etc
1048698 Salary administration Generate personnel cost reports conduct lsquowhat if
analysisrsquo provide compensation history
1048698 Leave and absence recording Essentially being able to provide comprehensive
method of tracking absences late coming reports on excess leave availed leave
lapsed
1048698 Skill inventory Recording of acquired skills and monitor the skill database at the
employee and organisational level
1048698 Performance appraisal The system should record individual employee
performance appraisal data such as appraisal ratings due date of appraisal
training needs identified during the appraisal process
1048698 Recruitment Record recruitment cost lead time to fill a vacant position
recruitment methods applicant and resume management
1048698 Career planning HRIS System can provide succession plan reports identifying
employees earmarked for future position
64
HRIS ndash DISADVANTAGES
May be expensive ndash financing the technology
1048698 Thorough understanding of what constitutes quality information for the user
1048698 Computer cannot substitute human beings
HUMAN RESOURCE DEVELOPMENT SYSTEM
66
HRD
HRD play a very crucial role in organization Henery Ford once said ldquotake out my building take out my machines take out all capital but leave my men with me and I will become Henry Ford againrdquo HRD is considered as key to higher productivity better relations and greater profitability for any organization
According to Daftur
ldquoHRD is a system and process concerned with an organized series of learning activities within specified time limits designed to produce behavioral changes in the learner in such a way that it acquires desired level of competence for present or future rolerdquo
67
HRDORGANIZATION ALIGNMENT MODEL
TRAINING AND DEVELOPMENT
69
NEED FOR TRAINING AND DEVELOPMENT
bull Technological advances bull Organizational complexity bull Organizational tenure bull Human relations movement
70
THE TRAINING PROCESS
71
Needs Assessment
72
bull Lecturesbull Audio Visualsbull On-the-job Training (OJT)bull Programmed Instructionbull Computer Assisted Instruction (CAI)bull Simulation
Methods and Techniques of Training
73
Training Methods for Management Development
1048698 Seminars and Conferences
1048698 Case Study
1048698 Role Playing
1048698 Management Games
1048698 Sensitivity Training
74
bull Implementation of the Training Program
bull Evaluation of Training Program
75
Kirkpatrick Model for Evaluating Effectiveness of Training Programs
1 Reactions
2 Learning
3 Behaviors
Results or Return on Investment (ROI)
76
SPECIAL TOPICS IN TRAINING ANDDEVELOPMENT
bull Cross-cultural Training
bull Orientation Training
bull Team-training and Cross-training
bull Diversity Training
COMPENSATION AND REWARDS
78
COMPENSATION OVERVIEW
Compensation is the process of directly and indirectly rewarding employees on a current or deferred basis for their performance of assigned tasks It consists of
1048698 Direct Financial Compensation Wages salaries bonuses commissions
1048698 Indirect Financial Compensation All financial rewards not included in direct compensation (benefits)
1048698 Non-financial Compensation Satisfaction received from the job or from the psychological andor physical environment of the job
JOB EVALUATION TECHNIQUE
The general step-wise procedure for job evaluation is as under
1 Select the group of jobs
2 Study the job (job analysis)
3 Prepare job description ndash approval
4 Device an evaluation plan ndash common characteristicstraits
5 Establish a committee of raters and rateevaluate
6 Group or classify the jobs
7 Convert job grades to money value along with Wage survey
8 Obtain approval from Union and Management
9 Establish a suitable grievance procedure
COMPONENTS OF COMPENSATION SYSTEM
1 Basic WagesSalaries
2 Dearness Allowance
3 Bonus
4 Commissions
5 Mixed Plans
6 Piece Rate Wages
7 Sign on Bonuses
8 Profit Sharing Payments
9 Fringe Benefits
COMPENSATION EQUITY
1048698 External Equity Employees are paid comparably to those who perform similar jobs in other industries
1048698 Internal Equity Employees are paid according to relative value of their jobs within an organisation
1048698 Employee Equity Individuals performing similar jobs for the same firm are rewarded according to factors unique to the employee such as performance level or seniority
1048698 Team Equity More productive teams receive greater rewards than less productive groups
INTERNATIONAL COMPENSATION
Elements of Expatriate Compensation
Basic Pay Amount of money that an expatriate receives from home country Used for
Bonus calculation
Benefits
1048698 One third of compensation
1048698 Extra vacation special leaves air fares for their families for an annual visit home
emergency leaves
1048698 Housing
1048698 Utilities ndash air conditioner bottled water electricity telephone call expenses
1048698 Car ndash car expenses chauffeur hired vehicle
Helping hands servants gardeners security
1048698 Club subscription
1048698 Educational benefits
Allowances
1048698 COLA ndash cost of living between home country and foreign country inflation
1048698 Relocation allowances
1048698 Hardship allowances
1048698 Separation allowances
1048698 Clothing allowances ndash very cold climates
1048698 Home leave allowances
1048698 Spouse assistance allowances
REWARDS SYSTEM
Reward System as Followed by Organisations
1 Incentive and Rewards
2 Competency Related Pay
3 Skill Based Pay
4 Team Based Rewards
5 Profit Sharing
7 Employee Ownership
8 Statutory and Voluntary Benefits
FORMS OF RECOGNITION
Examples of Formal Recognition
1 Milestone Service Anniversary Awards (5101520 25 years of service)
2 Ideas Improvement amp Performance Awards
3 Service Awards
a) Teamworkleadership
b) Customer Service
c) Citizenship
d) Innovation
e) Attendance
4 Awards would include
a) PlaquesDesk trophies
b) Certificates
c) GiftsCertificates
d) Picture in the webpage
FORMS OF RECOGNITION
Examples of Informal Recognition
1 Team Building Retreats
2 Acknowledgement of DeptDivision goals achieved
3 Project Completion meals
4 Birthday cakes and cards
5 Picnics
6 Staff Appreciation Day
7 Holiday Parties
8 Dress-up Days
9 Corporate Merchandise
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-
26
bull INDUCTION
bull OUTSOURCING
27
COMPETENCY MAPPING AND ASSESSMENT CENTRES
28
Competencies
competencies are typically defined as a combination of knowledge skills abilities and other individual characteristics that can be reliably measured and that can be shown to differentiate performance
29
VARIOUS COMPETENCY MODELS
1048698Job Competencies Assessment Model interviews and
observations of outstanding and average performers
1048698Modified Job Competence Assessment Model a written account
of critical incidents (to reduce costs)
1048698Generic Model Overlay Method off-the-shelf
1048698Customized Generic Model Method tentative list of
competencies that are identified internally
1048698Flexible Job Competency Model Method under different conditions in the future
1048698Systems Method behaviors that may be important in the
future
30
HISTORY OF ASSESSMENT CENTRES
bull 1942
bull exceptional smartness
bull War Office Selection Boards
31
MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
Types of Psychological Tests
1048698 IQAchievement tests
1048698 Situational tests Situations are given and an individualrsquos behaviorresponse is observed
1048698 Psychometric tests
1048698 Personality Questionnaire
1048698 Interest Questionnaire
1048698 Values Questionnaire
32
MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
bull The Leaderless Group Discussion (LGD)bull In-basket Exercisebull Group Exercisesbull Behavioral Event Interviews
33
Difference between Assessment Centre and Development Center
34
PERFORMANCE PLANNING AND REVIEW
35
GOALS OF PERFORMANCE APPRAISAL
1048698 Each objective should be SMART ndash specific measurable agreed realistic and time-limited
1048698 Each objective must be in an area over which the employee has control
1048698 Give each objective a deadline
1048698 A clear target allows you to measure whether the employee is making the progress you expect
1048698 Provide information to assist in the HR decisions like promotions transfers etc
36
PROCESS OF PERFORMANCE APPRAISAL
bull Establishing Performance Standards
bull Communicating the Standards
37
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
bull Broadly all methods of appraisals can be divided into two different categories
bull 1048698 Past Oriented Methodsbull 1048698 Future Oriented Methods
38
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Past Oriented Methods
1 Rating Scales Rating scales consists of several numerical scales representing job related performance criterions such as dependability initiative output attendance attitude etc Each scales ranges from excellent to poor The total numerical scores are computed and final conclusions are derived
Advantages Adaptability easy to use low cost every type of job can be
evaluated large number of employees covered no formal training required
Disadvantages Raterrsquos biases
2 Checklist Under this method checklist of statements of traits of employee in the
form of Yes or No based questions is prepared Here the rater only does the
reporting or checking and HR department does the actual evaluation
Advantages Economy ease of administration limited training required
standardization
Disadvantages Raters biases use of improper weighs by HR does not allow rater
to give relative ratings
39
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
3 Forced Choice Method The series of statements arranged in the blocks of two or more are given and the rater indicates which statement is true or false The rater is forced to make a choice HR department does actual assessment
Advantages Absence of personal biases because of forced choice
Disadvantages Statements may be wrongly framed
4 Forced Distribution Method Here employees are clustered around a high point on a rating scale Rater is compelled to distribute the employees on all points on the scale It is assumed that the performance is conformed to normal distribution
Advantages Eliminates biasness
Disadvantages Assumption of normal distribution unrealistic errors of central
tendency
40
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
5 Critical Incidents Method The approach is focused on certain critical behaviors
of employee that makes all the difference in the performance Supervisors as and
when they occur record such incidents
Advantages Evaluations are based on actual job behaviors ratings are supported
by descriptions feedback is easy reduces recency biases chances of subordinate
improvement are high
Disadvantages Negative incidents can be prioritized forgetting incidents overly
close supervision feedback may be too much and may appear to be punishment
6 Behaviorally Anchored Rating Scales Statements of effective and ineffective
behaviors determine the points They are said to be behaviorally anchored The
rater is supposed to say which behavior describes the employee performance
Advantages Helps overcome rating errors
Disadvantages Suffers from distortions inherent in most rating techniques
41
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
7 Field Review Method This is an appraisal done by someone outside employeesrsquo own department usually from corporate or HR department
Advantages Useful for managerial level promotions when comparable
information is needed
Disadvantages Outsider is generally not familiar with employees work
environment Observation of actual behaviors not possible
8 Performance Tests amp Observations This is based on the test of knowledge or skills The tests may be written or an actual presentation of skills Tests must be reliable and validated to be useful
Advantages Tests may be apt to measure potential more than actual performance
Disadvantages Tests may suffer if costs of test development or administration are high
42
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Future Oriented Methods
1 Management by Objectives It means management by objectives and the
performance is rated against the achievement of objectives stated by the
management MBO process
(a) Establish goals and desired outcomes for each subordinate
(b) Setting performance standards
(c) Comparison of actual goals with goals attained by the employee
(d) Establish new goals and new strategies for goals not achieved in previous
year
43
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Future Oriented Methods
2 Psychological Appraisals
These appraisals are more directed to assess employeersquos potential for future performance rather than the past one It is done in the form of in-depth interviews psychological tests and discussion with supervisors and review of other evaluations
It is more focused on employees emotional intellectual and motivational and other personal characteristics affecting his performance This approach is slow and costly and may be useful for bright young members who may have considerable potential However quality of these appraisals largely depend upon the skills of psychologists who perform the evaluation
44
1 Leniency amp Severity
2 Central Tendency
3 Halo Effect
4 Primacy amp Recency Effect
5 Spillover Effects
6 Status Effect
Problems of RatingRating Biases
45
PERFORMANCE COACHING
The performance coaching process involves five strategies
1 Creating a partnership role To make employees realize that both employees and manger are responsible for performance and build trust amongst them
2 Commitment Inspiring employees to be committed to the goals
3 Competency development Awareness towards developing skills and
competencies required to reach to organizational goals
4 Perseverance Developing lsquonever say diersquo attitude among organizational members
5 Shaping the environment Creating conditions for employee development
46
THE COACHING DISCUSSION
Kinlawrsquos Approach
Kinlaw suggests a three-stage approach to the coaching discussion as follows
1048698 Confronting or presenting
1048698 Using reactions to develop information
1048698 Resolving or resolution
47
THE COACHING DISCUSSION
bull Fourniesrsquo Approach
bull Step 1 Get the employeersquos agreement that a problem existsbull Step 2 Mutually discuss alternative solutions to the problembull Step 3 Mutually agree on actions to be taken to solve the problembull Step 4 Follow-up to measure resultsbull Step 5 Recognize any achievement when it occurs
48
MENTORING
bull Mentorship is a process where an experienced person provides help guidance support to nurture and develop a less experienced person referred to as a proteacutegeacute apprentice mentee or (person) It improves the self esteem of mentee and increases hisher chance for success
49
MENTORING - Kinds
1048698 New-hire mentorship
1048698 High-potential mentorship
1048698 Mentorship in Education
50
POTENTIAL APPRAISAL CAREER AND SUCCESSION
PLANNING
51
POTENTIAL APPRAISAL
Purpose of Potential Appraisal
Potential appraisal serves the following purposes
1048698 To advise employees about their overall career development and future prospects
1048698 Help the organisation to chalk out succession plans
1048698 Motivate the employees to further develop their skills and competencies
1048698 To identify the training needs
52
POTENTIAL APPRAISAL
Techniques of Potential Appraisal
1048698 Self-appraisals
1048698 Peer appraisals
1048698 Superior appraisals
1048698 MBO
1048698 Psychological and psychometric tests
1048698 Management games like role playing
1048698 Leadership exercises etc
53
CAREER PLANNING
Steps in Career Planning Process
Step One Self Assessment
Step Two Goal Setting
Step Three AcademicCareer Options
Step Four Plan of Action
Step Five Catch Hold of Opportunities
54
bull Succession Planning refers to the process of developing the second line for taking up a higher role in the organization
SUCCESSION PLANNING
55
HR MEASUREMENT AND AUDIT
bull Audit helps the organization have a clear understanding of the lacunae and better align the HR processes with Business goals
bull The audit itself is a diagnostic tool not a prescriptive instrument It helps in identifying what is missing or needs to improve It is most useful when an organization is ready to act on the findings and to evolve its HR function to play a greater strategic role
56
WHY CONDUCT AN HR AUDIT
1048698 It helps promote more professionalism and professional management
1048698 HR audit helps an organization to be aware of its present practices policies
and their adherence
1048698 Benchmarking to improve HR practices
1048698 The organization can benchmark its processes with best-in-class organizations
1048698 HR audit suggest improvement measures keeping the organizational strategic goals and vision in mind
57
THE HR AUDIT PROCESS
InterviewsQuestionnaires
The audit team interviews the following
1048698 Top Management (CEO Unit Heads)
1048698 Line Managers (eg Managers in production quality purchase and marketing)
1048698 HRD Staff
1048698 Workmen and others
Observation and Recording
Follow-up and Corrections done
58
HUMAN RESOURCE ACCOUNTING
bull The American Accounting Associationrsquos Committee on Human Resource Accounting (1973) has defined Human Resource Accounting as ldquothe process of identifying and measuring data about human resources and communicating this information to interested partiesrdquo
bull It is the measurement and reporting of the cost and value of people in organizational Resources
59
METHODS OF HUMAN RESOURCE ACCOUNTING
Methods of Valuing and Accounting of Human Resources
The methods to value and account for human resources can be classified into the following categories
1 Methods based on costs (which include costs incurred by the company to recruit hire train and develop human resources)
2 Methods based on economic value of human resources and the capitalisation of companyrsquos earnings
60
HUMAN RESOURCE ACCOUNTING
Methods based on Cost
Historical Cost Method
Under this method the cost of acquisition ie selection hiring training costs of employees are capitalised and written off over the expected useful life of the employees In case the personnel leave the company before the anticipated period of service then the unamortised portion of costs remaining in the companyrsquos books is written off against the profit and loss account in that year If the period of service exceeds the anticipated time then amortisation of costs is rescheduled
Replacement Cost Method
Under this method the human resources are valued at their replacement cost ie The monetary implications of replacing existing personnel
Standard Cost Method
Under this method standard costs of recruiting hiring training and developing per grade of employees are determined annually The total standard cost for all personnel of the company is the value of human resources
61
HUMAN RESOURCE ACCOUNTING
bull HR Accounting based on Value
bull Economic Value Method
bull Under this method the net present value of incremental cash flows attributed to human resources is taken as the asset value
62
HUMAN RESOURCE INFORMATION SYSTEMS(HRIS)
bull An information system may be automated or manual and involves collectingprocessing transmitting and disseminating data that represents user information
63
HRIS ndash APPLICATION AND UTILITIES
Personnel administration It will encompass information about each employee
such as name address personal details etc
1048698 Salary administration Generate personnel cost reports conduct lsquowhat if
analysisrsquo provide compensation history
1048698 Leave and absence recording Essentially being able to provide comprehensive
method of tracking absences late coming reports on excess leave availed leave
lapsed
1048698 Skill inventory Recording of acquired skills and monitor the skill database at the
employee and organisational level
1048698 Performance appraisal The system should record individual employee
performance appraisal data such as appraisal ratings due date of appraisal
training needs identified during the appraisal process
1048698 Recruitment Record recruitment cost lead time to fill a vacant position
recruitment methods applicant and resume management
1048698 Career planning HRIS System can provide succession plan reports identifying
employees earmarked for future position
64
HRIS ndash DISADVANTAGES
May be expensive ndash financing the technology
1048698 Thorough understanding of what constitutes quality information for the user
1048698 Computer cannot substitute human beings
HUMAN RESOURCE DEVELOPMENT SYSTEM
66
HRD
HRD play a very crucial role in organization Henery Ford once said ldquotake out my building take out my machines take out all capital but leave my men with me and I will become Henry Ford againrdquo HRD is considered as key to higher productivity better relations and greater profitability for any organization
According to Daftur
ldquoHRD is a system and process concerned with an organized series of learning activities within specified time limits designed to produce behavioral changes in the learner in such a way that it acquires desired level of competence for present or future rolerdquo
67
HRDORGANIZATION ALIGNMENT MODEL
TRAINING AND DEVELOPMENT
69
NEED FOR TRAINING AND DEVELOPMENT
bull Technological advances bull Organizational complexity bull Organizational tenure bull Human relations movement
70
THE TRAINING PROCESS
71
Needs Assessment
72
bull Lecturesbull Audio Visualsbull On-the-job Training (OJT)bull Programmed Instructionbull Computer Assisted Instruction (CAI)bull Simulation
Methods and Techniques of Training
73
Training Methods for Management Development
1048698 Seminars and Conferences
1048698 Case Study
1048698 Role Playing
1048698 Management Games
1048698 Sensitivity Training
74
bull Implementation of the Training Program
bull Evaluation of Training Program
75
Kirkpatrick Model for Evaluating Effectiveness of Training Programs
1 Reactions
2 Learning
3 Behaviors
Results or Return on Investment (ROI)
76
SPECIAL TOPICS IN TRAINING ANDDEVELOPMENT
bull Cross-cultural Training
bull Orientation Training
bull Team-training and Cross-training
bull Diversity Training
COMPENSATION AND REWARDS
78
COMPENSATION OVERVIEW
Compensation is the process of directly and indirectly rewarding employees on a current or deferred basis for their performance of assigned tasks It consists of
1048698 Direct Financial Compensation Wages salaries bonuses commissions
1048698 Indirect Financial Compensation All financial rewards not included in direct compensation (benefits)
1048698 Non-financial Compensation Satisfaction received from the job or from the psychological andor physical environment of the job
JOB EVALUATION TECHNIQUE
The general step-wise procedure for job evaluation is as under
1 Select the group of jobs
2 Study the job (job analysis)
3 Prepare job description ndash approval
4 Device an evaluation plan ndash common characteristicstraits
5 Establish a committee of raters and rateevaluate
6 Group or classify the jobs
7 Convert job grades to money value along with Wage survey
8 Obtain approval from Union and Management
9 Establish a suitable grievance procedure
COMPONENTS OF COMPENSATION SYSTEM
1 Basic WagesSalaries
2 Dearness Allowance
3 Bonus
4 Commissions
5 Mixed Plans
6 Piece Rate Wages
7 Sign on Bonuses
8 Profit Sharing Payments
9 Fringe Benefits
COMPENSATION EQUITY
1048698 External Equity Employees are paid comparably to those who perform similar jobs in other industries
1048698 Internal Equity Employees are paid according to relative value of their jobs within an organisation
1048698 Employee Equity Individuals performing similar jobs for the same firm are rewarded according to factors unique to the employee such as performance level or seniority
1048698 Team Equity More productive teams receive greater rewards than less productive groups
INTERNATIONAL COMPENSATION
Elements of Expatriate Compensation
Basic Pay Amount of money that an expatriate receives from home country Used for
Bonus calculation
Benefits
1048698 One third of compensation
1048698 Extra vacation special leaves air fares for their families for an annual visit home
emergency leaves
1048698 Housing
1048698 Utilities ndash air conditioner bottled water electricity telephone call expenses
1048698 Car ndash car expenses chauffeur hired vehicle
Helping hands servants gardeners security
1048698 Club subscription
1048698 Educational benefits
Allowances
1048698 COLA ndash cost of living between home country and foreign country inflation
1048698 Relocation allowances
1048698 Hardship allowances
1048698 Separation allowances
1048698 Clothing allowances ndash very cold climates
1048698 Home leave allowances
1048698 Spouse assistance allowances
REWARDS SYSTEM
Reward System as Followed by Organisations
1 Incentive and Rewards
2 Competency Related Pay
3 Skill Based Pay
4 Team Based Rewards
5 Profit Sharing
7 Employee Ownership
8 Statutory and Voluntary Benefits
FORMS OF RECOGNITION
Examples of Formal Recognition
1 Milestone Service Anniversary Awards (5101520 25 years of service)
2 Ideas Improvement amp Performance Awards
3 Service Awards
a) Teamworkleadership
b) Customer Service
c) Citizenship
d) Innovation
e) Attendance
4 Awards would include
a) PlaquesDesk trophies
b) Certificates
c) GiftsCertificates
d) Picture in the webpage
FORMS OF RECOGNITION
Examples of Informal Recognition
1 Team Building Retreats
2 Acknowledgement of DeptDivision goals achieved
3 Project Completion meals
4 Birthday cakes and cards
5 Picnics
6 Staff Appreciation Day
7 Holiday Parties
8 Dress-up Days
9 Corporate Merchandise
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-
27
COMPETENCY MAPPING AND ASSESSMENT CENTRES
28
Competencies
competencies are typically defined as a combination of knowledge skills abilities and other individual characteristics that can be reliably measured and that can be shown to differentiate performance
29
VARIOUS COMPETENCY MODELS
1048698Job Competencies Assessment Model interviews and
observations of outstanding and average performers
1048698Modified Job Competence Assessment Model a written account
of critical incidents (to reduce costs)
1048698Generic Model Overlay Method off-the-shelf
1048698Customized Generic Model Method tentative list of
competencies that are identified internally
1048698Flexible Job Competency Model Method under different conditions in the future
1048698Systems Method behaviors that may be important in the
future
30
HISTORY OF ASSESSMENT CENTRES
bull 1942
bull exceptional smartness
bull War Office Selection Boards
31
MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
Types of Psychological Tests
1048698 IQAchievement tests
1048698 Situational tests Situations are given and an individualrsquos behaviorresponse is observed
1048698 Psychometric tests
1048698 Personality Questionnaire
1048698 Interest Questionnaire
1048698 Values Questionnaire
32
MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
bull The Leaderless Group Discussion (LGD)bull In-basket Exercisebull Group Exercisesbull Behavioral Event Interviews
33
Difference between Assessment Centre and Development Center
34
PERFORMANCE PLANNING AND REVIEW
35
GOALS OF PERFORMANCE APPRAISAL
1048698 Each objective should be SMART ndash specific measurable agreed realistic and time-limited
1048698 Each objective must be in an area over which the employee has control
1048698 Give each objective a deadline
1048698 A clear target allows you to measure whether the employee is making the progress you expect
1048698 Provide information to assist in the HR decisions like promotions transfers etc
36
PROCESS OF PERFORMANCE APPRAISAL
bull Establishing Performance Standards
bull Communicating the Standards
37
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
bull Broadly all methods of appraisals can be divided into two different categories
bull 1048698 Past Oriented Methodsbull 1048698 Future Oriented Methods
38
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Past Oriented Methods
1 Rating Scales Rating scales consists of several numerical scales representing job related performance criterions such as dependability initiative output attendance attitude etc Each scales ranges from excellent to poor The total numerical scores are computed and final conclusions are derived
Advantages Adaptability easy to use low cost every type of job can be
evaluated large number of employees covered no formal training required
Disadvantages Raterrsquos biases
2 Checklist Under this method checklist of statements of traits of employee in the
form of Yes or No based questions is prepared Here the rater only does the
reporting or checking and HR department does the actual evaluation
Advantages Economy ease of administration limited training required
standardization
Disadvantages Raters biases use of improper weighs by HR does not allow rater
to give relative ratings
39
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
3 Forced Choice Method The series of statements arranged in the blocks of two or more are given and the rater indicates which statement is true or false The rater is forced to make a choice HR department does actual assessment
Advantages Absence of personal biases because of forced choice
Disadvantages Statements may be wrongly framed
4 Forced Distribution Method Here employees are clustered around a high point on a rating scale Rater is compelled to distribute the employees on all points on the scale It is assumed that the performance is conformed to normal distribution
Advantages Eliminates biasness
Disadvantages Assumption of normal distribution unrealistic errors of central
tendency
40
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
5 Critical Incidents Method The approach is focused on certain critical behaviors
of employee that makes all the difference in the performance Supervisors as and
when they occur record such incidents
Advantages Evaluations are based on actual job behaviors ratings are supported
by descriptions feedback is easy reduces recency biases chances of subordinate
improvement are high
Disadvantages Negative incidents can be prioritized forgetting incidents overly
close supervision feedback may be too much and may appear to be punishment
6 Behaviorally Anchored Rating Scales Statements of effective and ineffective
behaviors determine the points They are said to be behaviorally anchored The
rater is supposed to say which behavior describes the employee performance
Advantages Helps overcome rating errors
Disadvantages Suffers from distortions inherent in most rating techniques
41
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
7 Field Review Method This is an appraisal done by someone outside employeesrsquo own department usually from corporate or HR department
Advantages Useful for managerial level promotions when comparable
information is needed
Disadvantages Outsider is generally not familiar with employees work
environment Observation of actual behaviors not possible
8 Performance Tests amp Observations This is based on the test of knowledge or skills The tests may be written or an actual presentation of skills Tests must be reliable and validated to be useful
Advantages Tests may be apt to measure potential more than actual performance
Disadvantages Tests may suffer if costs of test development or administration are high
42
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Future Oriented Methods
1 Management by Objectives It means management by objectives and the
performance is rated against the achievement of objectives stated by the
management MBO process
(a) Establish goals and desired outcomes for each subordinate
(b) Setting performance standards
(c) Comparison of actual goals with goals attained by the employee
(d) Establish new goals and new strategies for goals not achieved in previous
year
43
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Future Oriented Methods
2 Psychological Appraisals
These appraisals are more directed to assess employeersquos potential for future performance rather than the past one It is done in the form of in-depth interviews psychological tests and discussion with supervisors and review of other evaluations
It is more focused on employees emotional intellectual and motivational and other personal characteristics affecting his performance This approach is slow and costly and may be useful for bright young members who may have considerable potential However quality of these appraisals largely depend upon the skills of psychologists who perform the evaluation
44
1 Leniency amp Severity
2 Central Tendency
3 Halo Effect
4 Primacy amp Recency Effect
5 Spillover Effects
6 Status Effect
Problems of RatingRating Biases
45
PERFORMANCE COACHING
The performance coaching process involves five strategies
1 Creating a partnership role To make employees realize that both employees and manger are responsible for performance and build trust amongst them
2 Commitment Inspiring employees to be committed to the goals
3 Competency development Awareness towards developing skills and
competencies required to reach to organizational goals
4 Perseverance Developing lsquonever say diersquo attitude among organizational members
5 Shaping the environment Creating conditions for employee development
46
THE COACHING DISCUSSION
Kinlawrsquos Approach
Kinlaw suggests a three-stage approach to the coaching discussion as follows
1048698 Confronting or presenting
1048698 Using reactions to develop information
1048698 Resolving or resolution
47
THE COACHING DISCUSSION
bull Fourniesrsquo Approach
bull Step 1 Get the employeersquos agreement that a problem existsbull Step 2 Mutually discuss alternative solutions to the problembull Step 3 Mutually agree on actions to be taken to solve the problembull Step 4 Follow-up to measure resultsbull Step 5 Recognize any achievement when it occurs
48
MENTORING
bull Mentorship is a process where an experienced person provides help guidance support to nurture and develop a less experienced person referred to as a proteacutegeacute apprentice mentee or (person) It improves the self esteem of mentee and increases hisher chance for success
49
MENTORING - Kinds
1048698 New-hire mentorship
1048698 High-potential mentorship
1048698 Mentorship in Education
50
POTENTIAL APPRAISAL CAREER AND SUCCESSION
PLANNING
51
POTENTIAL APPRAISAL
Purpose of Potential Appraisal
Potential appraisal serves the following purposes
1048698 To advise employees about their overall career development and future prospects
1048698 Help the organisation to chalk out succession plans
1048698 Motivate the employees to further develop their skills and competencies
1048698 To identify the training needs
52
POTENTIAL APPRAISAL
Techniques of Potential Appraisal
1048698 Self-appraisals
1048698 Peer appraisals
1048698 Superior appraisals
1048698 MBO
1048698 Psychological and psychometric tests
1048698 Management games like role playing
1048698 Leadership exercises etc
53
CAREER PLANNING
Steps in Career Planning Process
Step One Self Assessment
Step Two Goal Setting
Step Three AcademicCareer Options
Step Four Plan of Action
Step Five Catch Hold of Opportunities
54
bull Succession Planning refers to the process of developing the second line for taking up a higher role in the organization
SUCCESSION PLANNING
55
HR MEASUREMENT AND AUDIT
bull Audit helps the organization have a clear understanding of the lacunae and better align the HR processes with Business goals
bull The audit itself is a diagnostic tool not a prescriptive instrument It helps in identifying what is missing or needs to improve It is most useful when an organization is ready to act on the findings and to evolve its HR function to play a greater strategic role
56
WHY CONDUCT AN HR AUDIT
1048698 It helps promote more professionalism and professional management
1048698 HR audit helps an organization to be aware of its present practices policies
and their adherence
1048698 Benchmarking to improve HR practices
1048698 The organization can benchmark its processes with best-in-class organizations
1048698 HR audit suggest improvement measures keeping the organizational strategic goals and vision in mind
57
THE HR AUDIT PROCESS
InterviewsQuestionnaires
The audit team interviews the following
1048698 Top Management (CEO Unit Heads)
1048698 Line Managers (eg Managers in production quality purchase and marketing)
1048698 HRD Staff
1048698 Workmen and others
Observation and Recording
Follow-up and Corrections done
58
HUMAN RESOURCE ACCOUNTING
bull The American Accounting Associationrsquos Committee on Human Resource Accounting (1973) has defined Human Resource Accounting as ldquothe process of identifying and measuring data about human resources and communicating this information to interested partiesrdquo
bull It is the measurement and reporting of the cost and value of people in organizational Resources
59
METHODS OF HUMAN RESOURCE ACCOUNTING
Methods of Valuing and Accounting of Human Resources
The methods to value and account for human resources can be classified into the following categories
1 Methods based on costs (which include costs incurred by the company to recruit hire train and develop human resources)
2 Methods based on economic value of human resources and the capitalisation of companyrsquos earnings
60
HUMAN RESOURCE ACCOUNTING
Methods based on Cost
Historical Cost Method
Under this method the cost of acquisition ie selection hiring training costs of employees are capitalised and written off over the expected useful life of the employees In case the personnel leave the company before the anticipated period of service then the unamortised portion of costs remaining in the companyrsquos books is written off against the profit and loss account in that year If the period of service exceeds the anticipated time then amortisation of costs is rescheduled
Replacement Cost Method
Under this method the human resources are valued at their replacement cost ie The monetary implications of replacing existing personnel
Standard Cost Method
Under this method standard costs of recruiting hiring training and developing per grade of employees are determined annually The total standard cost for all personnel of the company is the value of human resources
61
HUMAN RESOURCE ACCOUNTING
bull HR Accounting based on Value
bull Economic Value Method
bull Under this method the net present value of incremental cash flows attributed to human resources is taken as the asset value
62
HUMAN RESOURCE INFORMATION SYSTEMS(HRIS)
bull An information system may be automated or manual and involves collectingprocessing transmitting and disseminating data that represents user information
63
HRIS ndash APPLICATION AND UTILITIES
Personnel administration It will encompass information about each employee
such as name address personal details etc
1048698 Salary administration Generate personnel cost reports conduct lsquowhat if
analysisrsquo provide compensation history
1048698 Leave and absence recording Essentially being able to provide comprehensive
method of tracking absences late coming reports on excess leave availed leave
lapsed
1048698 Skill inventory Recording of acquired skills and monitor the skill database at the
employee and organisational level
1048698 Performance appraisal The system should record individual employee
performance appraisal data such as appraisal ratings due date of appraisal
training needs identified during the appraisal process
1048698 Recruitment Record recruitment cost lead time to fill a vacant position
recruitment methods applicant and resume management
1048698 Career planning HRIS System can provide succession plan reports identifying
employees earmarked for future position
64
HRIS ndash DISADVANTAGES
May be expensive ndash financing the technology
1048698 Thorough understanding of what constitutes quality information for the user
1048698 Computer cannot substitute human beings
HUMAN RESOURCE DEVELOPMENT SYSTEM
66
HRD
HRD play a very crucial role in organization Henery Ford once said ldquotake out my building take out my machines take out all capital but leave my men with me and I will become Henry Ford againrdquo HRD is considered as key to higher productivity better relations and greater profitability for any organization
According to Daftur
ldquoHRD is a system and process concerned with an organized series of learning activities within specified time limits designed to produce behavioral changes in the learner in such a way that it acquires desired level of competence for present or future rolerdquo
67
HRDORGANIZATION ALIGNMENT MODEL
TRAINING AND DEVELOPMENT
69
NEED FOR TRAINING AND DEVELOPMENT
bull Technological advances bull Organizational complexity bull Organizational tenure bull Human relations movement
70
THE TRAINING PROCESS
71
Needs Assessment
72
bull Lecturesbull Audio Visualsbull On-the-job Training (OJT)bull Programmed Instructionbull Computer Assisted Instruction (CAI)bull Simulation
Methods and Techniques of Training
73
Training Methods for Management Development
1048698 Seminars and Conferences
1048698 Case Study
1048698 Role Playing
1048698 Management Games
1048698 Sensitivity Training
74
bull Implementation of the Training Program
bull Evaluation of Training Program
75
Kirkpatrick Model for Evaluating Effectiveness of Training Programs
1 Reactions
2 Learning
3 Behaviors
Results or Return on Investment (ROI)
76
SPECIAL TOPICS IN TRAINING ANDDEVELOPMENT
bull Cross-cultural Training
bull Orientation Training
bull Team-training and Cross-training
bull Diversity Training
COMPENSATION AND REWARDS
78
COMPENSATION OVERVIEW
Compensation is the process of directly and indirectly rewarding employees on a current or deferred basis for their performance of assigned tasks It consists of
1048698 Direct Financial Compensation Wages salaries bonuses commissions
1048698 Indirect Financial Compensation All financial rewards not included in direct compensation (benefits)
1048698 Non-financial Compensation Satisfaction received from the job or from the psychological andor physical environment of the job
JOB EVALUATION TECHNIQUE
The general step-wise procedure for job evaluation is as under
1 Select the group of jobs
2 Study the job (job analysis)
3 Prepare job description ndash approval
4 Device an evaluation plan ndash common characteristicstraits
5 Establish a committee of raters and rateevaluate
6 Group or classify the jobs
7 Convert job grades to money value along with Wage survey
8 Obtain approval from Union and Management
9 Establish a suitable grievance procedure
COMPONENTS OF COMPENSATION SYSTEM
1 Basic WagesSalaries
2 Dearness Allowance
3 Bonus
4 Commissions
5 Mixed Plans
6 Piece Rate Wages
7 Sign on Bonuses
8 Profit Sharing Payments
9 Fringe Benefits
COMPENSATION EQUITY
1048698 External Equity Employees are paid comparably to those who perform similar jobs in other industries
1048698 Internal Equity Employees are paid according to relative value of their jobs within an organisation
1048698 Employee Equity Individuals performing similar jobs for the same firm are rewarded according to factors unique to the employee such as performance level or seniority
1048698 Team Equity More productive teams receive greater rewards than less productive groups
INTERNATIONAL COMPENSATION
Elements of Expatriate Compensation
Basic Pay Amount of money that an expatriate receives from home country Used for
Bonus calculation
Benefits
1048698 One third of compensation
1048698 Extra vacation special leaves air fares for their families for an annual visit home
emergency leaves
1048698 Housing
1048698 Utilities ndash air conditioner bottled water electricity telephone call expenses
1048698 Car ndash car expenses chauffeur hired vehicle
Helping hands servants gardeners security
1048698 Club subscription
1048698 Educational benefits
Allowances
1048698 COLA ndash cost of living between home country and foreign country inflation
1048698 Relocation allowances
1048698 Hardship allowances
1048698 Separation allowances
1048698 Clothing allowances ndash very cold climates
1048698 Home leave allowances
1048698 Spouse assistance allowances
REWARDS SYSTEM
Reward System as Followed by Organisations
1 Incentive and Rewards
2 Competency Related Pay
3 Skill Based Pay
4 Team Based Rewards
5 Profit Sharing
7 Employee Ownership
8 Statutory and Voluntary Benefits
FORMS OF RECOGNITION
Examples of Formal Recognition
1 Milestone Service Anniversary Awards (5101520 25 years of service)
2 Ideas Improvement amp Performance Awards
3 Service Awards
a) Teamworkleadership
b) Customer Service
c) Citizenship
d) Innovation
e) Attendance
4 Awards would include
a) PlaquesDesk trophies
b) Certificates
c) GiftsCertificates
d) Picture in the webpage
FORMS OF RECOGNITION
Examples of Informal Recognition
1 Team Building Retreats
2 Acknowledgement of DeptDivision goals achieved
3 Project Completion meals
4 Birthday cakes and cards
5 Picnics
6 Staff Appreciation Day
7 Holiday Parties
8 Dress-up Days
9 Corporate Merchandise
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-
28
Competencies
competencies are typically defined as a combination of knowledge skills abilities and other individual characteristics that can be reliably measured and that can be shown to differentiate performance
29
VARIOUS COMPETENCY MODELS
1048698Job Competencies Assessment Model interviews and
observations of outstanding and average performers
1048698Modified Job Competence Assessment Model a written account
of critical incidents (to reduce costs)
1048698Generic Model Overlay Method off-the-shelf
1048698Customized Generic Model Method tentative list of
competencies that are identified internally
1048698Flexible Job Competency Model Method under different conditions in the future
1048698Systems Method behaviors that may be important in the
future
30
HISTORY OF ASSESSMENT CENTRES
bull 1942
bull exceptional smartness
bull War Office Selection Boards
31
MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
Types of Psychological Tests
1048698 IQAchievement tests
1048698 Situational tests Situations are given and an individualrsquos behaviorresponse is observed
1048698 Psychometric tests
1048698 Personality Questionnaire
1048698 Interest Questionnaire
1048698 Values Questionnaire
32
MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
bull The Leaderless Group Discussion (LGD)bull In-basket Exercisebull Group Exercisesbull Behavioral Event Interviews
33
Difference between Assessment Centre and Development Center
34
PERFORMANCE PLANNING AND REVIEW
35
GOALS OF PERFORMANCE APPRAISAL
1048698 Each objective should be SMART ndash specific measurable agreed realistic and time-limited
1048698 Each objective must be in an area over which the employee has control
1048698 Give each objective a deadline
1048698 A clear target allows you to measure whether the employee is making the progress you expect
1048698 Provide information to assist in the HR decisions like promotions transfers etc
36
PROCESS OF PERFORMANCE APPRAISAL
bull Establishing Performance Standards
bull Communicating the Standards
37
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
bull Broadly all methods of appraisals can be divided into two different categories
bull 1048698 Past Oriented Methodsbull 1048698 Future Oriented Methods
38
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Past Oriented Methods
1 Rating Scales Rating scales consists of several numerical scales representing job related performance criterions such as dependability initiative output attendance attitude etc Each scales ranges from excellent to poor The total numerical scores are computed and final conclusions are derived
Advantages Adaptability easy to use low cost every type of job can be
evaluated large number of employees covered no formal training required
Disadvantages Raterrsquos biases
2 Checklist Under this method checklist of statements of traits of employee in the
form of Yes or No based questions is prepared Here the rater only does the
reporting or checking and HR department does the actual evaluation
Advantages Economy ease of administration limited training required
standardization
Disadvantages Raters biases use of improper weighs by HR does not allow rater
to give relative ratings
39
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
3 Forced Choice Method The series of statements arranged in the blocks of two or more are given and the rater indicates which statement is true or false The rater is forced to make a choice HR department does actual assessment
Advantages Absence of personal biases because of forced choice
Disadvantages Statements may be wrongly framed
4 Forced Distribution Method Here employees are clustered around a high point on a rating scale Rater is compelled to distribute the employees on all points on the scale It is assumed that the performance is conformed to normal distribution
Advantages Eliminates biasness
Disadvantages Assumption of normal distribution unrealistic errors of central
tendency
40
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
5 Critical Incidents Method The approach is focused on certain critical behaviors
of employee that makes all the difference in the performance Supervisors as and
when they occur record such incidents
Advantages Evaluations are based on actual job behaviors ratings are supported
by descriptions feedback is easy reduces recency biases chances of subordinate
improvement are high
Disadvantages Negative incidents can be prioritized forgetting incidents overly
close supervision feedback may be too much and may appear to be punishment
6 Behaviorally Anchored Rating Scales Statements of effective and ineffective
behaviors determine the points They are said to be behaviorally anchored The
rater is supposed to say which behavior describes the employee performance
Advantages Helps overcome rating errors
Disadvantages Suffers from distortions inherent in most rating techniques
41
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
7 Field Review Method This is an appraisal done by someone outside employeesrsquo own department usually from corporate or HR department
Advantages Useful for managerial level promotions when comparable
information is needed
Disadvantages Outsider is generally not familiar with employees work
environment Observation of actual behaviors not possible
8 Performance Tests amp Observations This is based on the test of knowledge or skills The tests may be written or an actual presentation of skills Tests must be reliable and validated to be useful
Advantages Tests may be apt to measure potential more than actual performance
Disadvantages Tests may suffer if costs of test development or administration are high
42
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Future Oriented Methods
1 Management by Objectives It means management by objectives and the
performance is rated against the achievement of objectives stated by the
management MBO process
(a) Establish goals and desired outcomes for each subordinate
(b) Setting performance standards
(c) Comparison of actual goals with goals attained by the employee
(d) Establish new goals and new strategies for goals not achieved in previous
year
43
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Future Oriented Methods
2 Psychological Appraisals
These appraisals are more directed to assess employeersquos potential for future performance rather than the past one It is done in the form of in-depth interviews psychological tests and discussion with supervisors and review of other evaluations
It is more focused on employees emotional intellectual and motivational and other personal characteristics affecting his performance This approach is slow and costly and may be useful for bright young members who may have considerable potential However quality of these appraisals largely depend upon the skills of psychologists who perform the evaluation
44
1 Leniency amp Severity
2 Central Tendency
3 Halo Effect
4 Primacy amp Recency Effect
5 Spillover Effects
6 Status Effect
Problems of RatingRating Biases
45
PERFORMANCE COACHING
The performance coaching process involves five strategies
1 Creating a partnership role To make employees realize that both employees and manger are responsible for performance and build trust amongst them
2 Commitment Inspiring employees to be committed to the goals
3 Competency development Awareness towards developing skills and
competencies required to reach to organizational goals
4 Perseverance Developing lsquonever say diersquo attitude among organizational members
5 Shaping the environment Creating conditions for employee development
46
THE COACHING DISCUSSION
Kinlawrsquos Approach
Kinlaw suggests a three-stage approach to the coaching discussion as follows
1048698 Confronting or presenting
1048698 Using reactions to develop information
1048698 Resolving or resolution
47
THE COACHING DISCUSSION
bull Fourniesrsquo Approach
bull Step 1 Get the employeersquos agreement that a problem existsbull Step 2 Mutually discuss alternative solutions to the problembull Step 3 Mutually agree on actions to be taken to solve the problembull Step 4 Follow-up to measure resultsbull Step 5 Recognize any achievement when it occurs
48
MENTORING
bull Mentorship is a process where an experienced person provides help guidance support to nurture and develop a less experienced person referred to as a proteacutegeacute apprentice mentee or (person) It improves the self esteem of mentee and increases hisher chance for success
49
MENTORING - Kinds
1048698 New-hire mentorship
1048698 High-potential mentorship
1048698 Mentorship in Education
50
POTENTIAL APPRAISAL CAREER AND SUCCESSION
PLANNING
51
POTENTIAL APPRAISAL
Purpose of Potential Appraisal
Potential appraisal serves the following purposes
1048698 To advise employees about their overall career development and future prospects
1048698 Help the organisation to chalk out succession plans
1048698 Motivate the employees to further develop their skills and competencies
1048698 To identify the training needs
52
POTENTIAL APPRAISAL
Techniques of Potential Appraisal
1048698 Self-appraisals
1048698 Peer appraisals
1048698 Superior appraisals
1048698 MBO
1048698 Psychological and psychometric tests
1048698 Management games like role playing
1048698 Leadership exercises etc
53
CAREER PLANNING
Steps in Career Planning Process
Step One Self Assessment
Step Two Goal Setting
Step Three AcademicCareer Options
Step Four Plan of Action
Step Five Catch Hold of Opportunities
54
bull Succession Planning refers to the process of developing the second line for taking up a higher role in the organization
SUCCESSION PLANNING
55
HR MEASUREMENT AND AUDIT
bull Audit helps the organization have a clear understanding of the lacunae and better align the HR processes with Business goals
bull The audit itself is a diagnostic tool not a prescriptive instrument It helps in identifying what is missing or needs to improve It is most useful when an organization is ready to act on the findings and to evolve its HR function to play a greater strategic role
56
WHY CONDUCT AN HR AUDIT
1048698 It helps promote more professionalism and professional management
1048698 HR audit helps an organization to be aware of its present practices policies
and their adherence
1048698 Benchmarking to improve HR practices
1048698 The organization can benchmark its processes with best-in-class organizations
1048698 HR audit suggest improvement measures keeping the organizational strategic goals and vision in mind
57
THE HR AUDIT PROCESS
InterviewsQuestionnaires
The audit team interviews the following
1048698 Top Management (CEO Unit Heads)
1048698 Line Managers (eg Managers in production quality purchase and marketing)
1048698 HRD Staff
1048698 Workmen and others
Observation and Recording
Follow-up and Corrections done
58
HUMAN RESOURCE ACCOUNTING
bull The American Accounting Associationrsquos Committee on Human Resource Accounting (1973) has defined Human Resource Accounting as ldquothe process of identifying and measuring data about human resources and communicating this information to interested partiesrdquo
bull It is the measurement and reporting of the cost and value of people in organizational Resources
59
METHODS OF HUMAN RESOURCE ACCOUNTING
Methods of Valuing and Accounting of Human Resources
The methods to value and account for human resources can be classified into the following categories
1 Methods based on costs (which include costs incurred by the company to recruit hire train and develop human resources)
2 Methods based on economic value of human resources and the capitalisation of companyrsquos earnings
60
HUMAN RESOURCE ACCOUNTING
Methods based on Cost
Historical Cost Method
Under this method the cost of acquisition ie selection hiring training costs of employees are capitalised and written off over the expected useful life of the employees In case the personnel leave the company before the anticipated period of service then the unamortised portion of costs remaining in the companyrsquos books is written off against the profit and loss account in that year If the period of service exceeds the anticipated time then amortisation of costs is rescheduled
Replacement Cost Method
Under this method the human resources are valued at their replacement cost ie The monetary implications of replacing existing personnel
Standard Cost Method
Under this method standard costs of recruiting hiring training and developing per grade of employees are determined annually The total standard cost for all personnel of the company is the value of human resources
61
HUMAN RESOURCE ACCOUNTING
bull HR Accounting based on Value
bull Economic Value Method
bull Under this method the net present value of incremental cash flows attributed to human resources is taken as the asset value
62
HUMAN RESOURCE INFORMATION SYSTEMS(HRIS)
bull An information system may be automated or manual and involves collectingprocessing transmitting and disseminating data that represents user information
63
HRIS ndash APPLICATION AND UTILITIES
Personnel administration It will encompass information about each employee
such as name address personal details etc
1048698 Salary administration Generate personnel cost reports conduct lsquowhat if
analysisrsquo provide compensation history
1048698 Leave and absence recording Essentially being able to provide comprehensive
method of tracking absences late coming reports on excess leave availed leave
lapsed
1048698 Skill inventory Recording of acquired skills and monitor the skill database at the
employee and organisational level
1048698 Performance appraisal The system should record individual employee
performance appraisal data such as appraisal ratings due date of appraisal
training needs identified during the appraisal process
1048698 Recruitment Record recruitment cost lead time to fill a vacant position
recruitment methods applicant and resume management
1048698 Career planning HRIS System can provide succession plan reports identifying
employees earmarked for future position
64
HRIS ndash DISADVANTAGES
May be expensive ndash financing the technology
1048698 Thorough understanding of what constitutes quality information for the user
1048698 Computer cannot substitute human beings
HUMAN RESOURCE DEVELOPMENT SYSTEM
66
HRD
HRD play a very crucial role in organization Henery Ford once said ldquotake out my building take out my machines take out all capital but leave my men with me and I will become Henry Ford againrdquo HRD is considered as key to higher productivity better relations and greater profitability for any organization
According to Daftur
ldquoHRD is a system and process concerned with an organized series of learning activities within specified time limits designed to produce behavioral changes in the learner in such a way that it acquires desired level of competence for present or future rolerdquo
67
HRDORGANIZATION ALIGNMENT MODEL
TRAINING AND DEVELOPMENT
69
NEED FOR TRAINING AND DEVELOPMENT
bull Technological advances bull Organizational complexity bull Organizational tenure bull Human relations movement
70
THE TRAINING PROCESS
71
Needs Assessment
72
bull Lecturesbull Audio Visualsbull On-the-job Training (OJT)bull Programmed Instructionbull Computer Assisted Instruction (CAI)bull Simulation
Methods and Techniques of Training
73
Training Methods for Management Development
1048698 Seminars and Conferences
1048698 Case Study
1048698 Role Playing
1048698 Management Games
1048698 Sensitivity Training
74
bull Implementation of the Training Program
bull Evaluation of Training Program
75
Kirkpatrick Model for Evaluating Effectiveness of Training Programs
1 Reactions
2 Learning
3 Behaviors
Results or Return on Investment (ROI)
76
SPECIAL TOPICS IN TRAINING ANDDEVELOPMENT
bull Cross-cultural Training
bull Orientation Training
bull Team-training and Cross-training
bull Diversity Training
COMPENSATION AND REWARDS
78
COMPENSATION OVERVIEW
Compensation is the process of directly and indirectly rewarding employees on a current or deferred basis for their performance of assigned tasks It consists of
1048698 Direct Financial Compensation Wages salaries bonuses commissions
1048698 Indirect Financial Compensation All financial rewards not included in direct compensation (benefits)
1048698 Non-financial Compensation Satisfaction received from the job or from the psychological andor physical environment of the job
JOB EVALUATION TECHNIQUE
The general step-wise procedure for job evaluation is as under
1 Select the group of jobs
2 Study the job (job analysis)
3 Prepare job description ndash approval
4 Device an evaluation plan ndash common characteristicstraits
5 Establish a committee of raters and rateevaluate
6 Group or classify the jobs
7 Convert job grades to money value along with Wage survey
8 Obtain approval from Union and Management
9 Establish a suitable grievance procedure
COMPONENTS OF COMPENSATION SYSTEM
1 Basic WagesSalaries
2 Dearness Allowance
3 Bonus
4 Commissions
5 Mixed Plans
6 Piece Rate Wages
7 Sign on Bonuses
8 Profit Sharing Payments
9 Fringe Benefits
COMPENSATION EQUITY
1048698 External Equity Employees are paid comparably to those who perform similar jobs in other industries
1048698 Internal Equity Employees are paid according to relative value of their jobs within an organisation
1048698 Employee Equity Individuals performing similar jobs for the same firm are rewarded according to factors unique to the employee such as performance level or seniority
1048698 Team Equity More productive teams receive greater rewards than less productive groups
INTERNATIONAL COMPENSATION
Elements of Expatriate Compensation
Basic Pay Amount of money that an expatriate receives from home country Used for
Bonus calculation
Benefits
1048698 One third of compensation
1048698 Extra vacation special leaves air fares for their families for an annual visit home
emergency leaves
1048698 Housing
1048698 Utilities ndash air conditioner bottled water electricity telephone call expenses
1048698 Car ndash car expenses chauffeur hired vehicle
Helping hands servants gardeners security
1048698 Club subscription
1048698 Educational benefits
Allowances
1048698 COLA ndash cost of living between home country and foreign country inflation
1048698 Relocation allowances
1048698 Hardship allowances
1048698 Separation allowances
1048698 Clothing allowances ndash very cold climates
1048698 Home leave allowances
1048698 Spouse assistance allowances
REWARDS SYSTEM
Reward System as Followed by Organisations
1 Incentive and Rewards
2 Competency Related Pay
3 Skill Based Pay
4 Team Based Rewards
5 Profit Sharing
7 Employee Ownership
8 Statutory and Voluntary Benefits
FORMS OF RECOGNITION
Examples of Formal Recognition
1 Milestone Service Anniversary Awards (5101520 25 years of service)
2 Ideas Improvement amp Performance Awards
3 Service Awards
a) Teamworkleadership
b) Customer Service
c) Citizenship
d) Innovation
e) Attendance
4 Awards would include
a) PlaquesDesk trophies
b) Certificates
c) GiftsCertificates
d) Picture in the webpage
FORMS OF RECOGNITION
Examples of Informal Recognition
1 Team Building Retreats
2 Acknowledgement of DeptDivision goals achieved
3 Project Completion meals
4 Birthday cakes and cards
5 Picnics
6 Staff Appreciation Day
7 Holiday Parties
8 Dress-up Days
9 Corporate Merchandise
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-
29
VARIOUS COMPETENCY MODELS
1048698Job Competencies Assessment Model interviews and
observations of outstanding and average performers
1048698Modified Job Competence Assessment Model a written account
of critical incidents (to reduce costs)
1048698Generic Model Overlay Method off-the-shelf
1048698Customized Generic Model Method tentative list of
competencies that are identified internally
1048698Flexible Job Competency Model Method under different conditions in the future
1048698Systems Method behaviors that may be important in the
future
30
HISTORY OF ASSESSMENT CENTRES
bull 1942
bull exceptional smartness
bull War Office Selection Boards
31
MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
Types of Psychological Tests
1048698 IQAchievement tests
1048698 Situational tests Situations are given and an individualrsquos behaviorresponse is observed
1048698 Psychometric tests
1048698 Personality Questionnaire
1048698 Interest Questionnaire
1048698 Values Questionnaire
32
MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
bull The Leaderless Group Discussion (LGD)bull In-basket Exercisebull Group Exercisesbull Behavioral Event Interviews
33
Difference between Assessment Centre and Development Center
34
PERFORMANCE PLANNING AND REVIEW
35
GOALS OF PERFORMANCE APPRAISAL
1048698 Each objective should be SMART ndash specific measurable agreed realistic and time-limited
1048698 Each objective must be in an area over which the employee has control
1048698 Give each objective a deadline
1048698 A clear target allows you to measure whether the employee is making the progress you expect
1048698 Provide information to assist in the HR decisions like promotions transfers etc
36
PROCESS OF PERFORMANCE APPRAISAL
bull Establishing Performance Standards
bull Communicating the Standards
37
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
bull Broadly all methods of appraisals can be divided into two different categories
bull 1048698 Past Oriented Methodsbull 1048698 Future Oriented Methods
38
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Past Oriented Methods
1 Rating Scales Rating scales consists of several numerical scales representing job related performance criterions such as dependability initiative output attendance attitude etc Each scales ranges from excellent to poor The total numerical scores are computed and final conclusions are derived
Advantages Adaptability easy to use low cost every type of job can be
evaluated large number of employees covered no formal training required
Disadvantages Raterrsquos biases
2 Checklist Under this method checklist of statements of traits of employee in the
form of Yes or No based questions is prepared Here the rater only does the
reporting or checking and HR department does the actual evaluation
Advantages Economy ease of administration limited training required
standardization
Disadvantages Raters biases use of improper weighs by HR does not allow rater
to give relative ratings
39
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
3 Forced Choice Method The series of statements arranged in the blocks of two or more are given and the rater indicates which statement is true or false The rater is forced to make a choice HR department does actual assessment
Advantages Absence of personal biases because of forced choice
Disadvantages Statements may be wrongly framed
4 Forced Distribution Method Here employees are clustered around a high point on a rating scale Rater is compelled to distribute the employees on all points on the scale It is assumed that the performance is conformed to normal distribution
Advantages Eliminates biasness
Disadvantages Assumption of normal distribution unrealistic errors of central
tendency
40
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
5 Critical Incidents Method The approach is focused on certain critical behaviors
of employee that makes all the difference in the performance Supervisors as and
when they occur record such incidents
Advantages Evaluations are based on actual job behaviors ratings are supported
by descriptions feedback is easy reduces recency biases chances of subordinate
improvement are high
Disadvantages Negative incidents can be prioritized forgetting incidents overly
close supervision feedback may be too much and may appear to be punishment
6 Behaviorally Anchored Rating Scales Statements of effective and ineffective
behaviors determine the points They are said to be behaviorally anchored The
rater is supposed to say which behavior describes the employee performance
Advantages Helps overcome rating errors
Disadvantages Suffers from distortions inherent in most rating techniques
41
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
7 Field Review Method This is an appraisal done by someone outside employeesrsquo own department usually from corporate or HR department
Advantages Useful for managerial level promotions when comparable
information is needed
Disadvantages Outsider is generally not familiar with employees work
environment Observation of actual behaviors not possible
8 Performance Tests amp Observations This is based on the test of knowledge or skills The tests may be written or an actual presentation of skills Tests must be reliable and validated to be useful
Advantages Tests may be apt to measure potential more than actual performance
Disadvantages Tests may suffer if costs of test development or administration are high
42
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Future Oriented Methods
1 Management by Objectives It means management by objectives and the
performance is rated against the achievement of objectives stated by the
management MBO process
(a) Establish goals and desired outcomes for each subordinate
(b) Setting performance standards
(c) Comparison of actual goals with goals attained by the employee
(d) Establish new goals and new strategies for goals not achieved in previous
year
43
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Future Oriented Methods
2 Psychological Appraisals
These appraisals are more directed to assess employeersquos potential for future performance rather than the past one It is done in the form of in-depth interviews psychological tests and discussion with supervisors and review of other evaluations
It is more focused on employees emotional intellectual and motivational and other personal characteristics affecting his performance This approach is slow and costly and may be useful for bright young members who may have considerable potential However quality of these appraisals largely depend upon the skills of psychologists who perform the evaluation
44
1 Leniency amp Severity
2 Central Tendency
3 Halo Effect
4 Primacy amp Recency Effect
5 Spillover Effects
6 Status Effect
Problems of RatingRating Biases
45
PERFORMANCE COACHING
The performance coaching process involves five strategies
1 Creating a partnership role To make employees realize that both employees and manger are responsible for performance and build trust amongst them
2 Commitment Inspiring employees to be committed to the goals
3 Competency development Awareness towards developing skills and
competencies required to reach to organizational goals
4 Perseverance Developing lsquonever say diersquo attitude among organizational members
5 Shaping the environment Creating conditions for employee development
46
THE COACHING DISCUSSION
Kinlawrsquos Approach
Kinlaw suggests a three-stage approach to the coaching discussion as follows
1048698 Confronting or presenting
1048698 Using reactions to develop information
1048698 Resolving or resolution
47
THE COACHING DISCUSSION
bull Fourniesrsquo Approach
bull Step 1 Get the employeersquos agreement that a problem existsbull Step 2 Mutually discuss alternative solutions to the problembull Step 3 Mutually agree on actions to be taken to solve the problembull Step 4 Follow-up to measure resultsbull Step 5 Recognize any achievement when it occurs
48
MENTORING
bull Mentorship is a process where an experienced person provides help guidance support to nurture and develop a less experienced person referred to as a proteacutegeacute apprentice mentee or (person) It improves the self esteem of mentee and increases hisher chance for success
49
MENTORING - Kinds
1048698 New-hire mentorship
1048698 High-potential mentorship
1048698 Mentorship in Education
50
POTENTIAL APPRAISAL CAREER AND SUCCESSION
PLANNING
51
POTENTIAL APPRAISAL
Purpose of Potential Appraisal
Potential appraisal serves the following purposes
1048698 To advise employees about their overall career development and future prospects
1048698 Help the organisation to chalk out succession plans
1048698 Motivate the employees to further develop their skills and competencies
1048698 To identify the training needs
52
POTENTIAL APPRAISAL
Techniques of Potential Appraisal
1048698 Self-appraisals
1048698 Peer appraisals
1048698 Superior appraisals
1048698 MBO
1048698 Psychological and psychometric tests
1048698 Management games like role playing
1048698 Leadership exercises etc
53
CAREER PLANNING
Steps in Career Planning Process
Step One Self Assessment
Step Two Goal Setting
Step Three AcademicCareer Options
Step Four Plan of Action
Step Five Catch Hold of Opportunities
54
bull Succession Planning refers to the process of developing the second line for taking up a higher role in the organization
SUCCESSION PLANNING
55
HR MEASUREMENT AND AUDIT
bull Audit helps the organization have a clear understanding of the lacunae and better align the HR processes with Business goals
bull The audit itself is a diagnostic tool not a prescriptive instrument It helps in identifying what is missing or needs to improve It is most useful when an organization is ready to act on the findings and to evolve its HR function to play a greater strategic role
56
WHY CONDUCT AN HR AUDIT
1048698 It helps promote more professionalism and professional management
1048698 HR audit helps an organization to be aware of its present practices policies
and their adherence
1048698 Benchmarking to improve HR practices
1048698 The organization can benchmark its processes with best-in-class organizations
1048698 HR audit suggest improvement measures keeping the organizational strategic goals and vision in mind
57
THE HR AUDIT PROCESS
InterviewsQuestionnaires
The audit team interviews the following
1048698 Top Management (CEO Unit Heads)
1048698 Line Managers (eg Managers in production quality purchase and marketing)
1048698 HRD Staff
1048698 Workmen and others
Observation and Recording
Follow-up and Corrections done
58
HUMAN RESOURCE ACCOUNTING
bull The American Accounting Associationrsquos Committee on Human Resource Accounting (1973) has defined Human Resource Accounting as ldquothe process of identifying and measuring data about human resources and communicating this information to interested partiesrdquo
bull It is the measurement and reporting of the cost and value of people in organizational Resources
59
METHODS OF HUMAN RESOURCE ACCOUNTING
Methods of Valuing and Accounting of Human Resources
The methods to value and account for human resources can be classified into the following categories
1 Methods based on costs (which include costs incurred by the company to recruit hire train and develop human resources)
2 Methods based on economic value of human resources and the capitalisation of companyrsquos earnings
60
HUMAN RESOURCE ACCOUNTING
Methods based on Cost
Historical Cost Method
Under this method the cost of acquisition ie selection hiring training costs of employees are capitalised and written off over the expected useful life of the employees In case the personnel leave the company before the anticipated period of service then the unamortised portion of costs remaining in the companyrsquos books is written off against the profit and loss account in that year If the period of service exceeds the anticipated time then amortisation of costs is rescheduled
Replacement Cost Method
Under this method the human resources are valued at their replacement cost ie The monetary implications of replacing existing personnel
Standard Cost Method
Under this method standard costs of recruiting hiring training and developing per grade of employees are determined annually The total standard cost for all personnel of the company is the value of human resources
61
HUMAN RESOURCE ACCOUNTING
bull HR Accounting based on Value
bull Economic Value Method
bull Under this method the net present value of incremental cash flows attributed to human resources is taken as the asset value
62
HUMAN RESOURCE INFORMATION SYSTEMS(HRIS)
bull An information system may be automated or manual and involves collectingprocessing transmitting and disseminating data that represents user information
63
HRIS ndash APPLICATION AND UTILITIES
Personnel administration It will encompass information about each employee
such as name address personal details etc
1048698 Salary administration Generate personnel cost reports conduct lsquowhat if
analysisrsquo provide compensation history
1048698 Leave and absence recording Essentially being able to provide comprehensive
method of tracking absences late coming reports on excess leave availed leave
lapsed
1048698 Skill inventory Recording of acquired skills and monitor the skill database at the
employee and organisational level
1048698 Performance appraisal The system should record individual employee
performance appraisal data such as appraisal ratings due date of appraisal
training needs identified during the appraisal process
1048698 Recruitment Record recruitment cost lead time to fill a vacant position
recruitment methods applicant and resume management
1048698 Career planning HRIS System can provide succession plan reports identifying
employees earmarked for future position
64
HRIS ndash DISADVANTAGES
May be expensive ndash financing the technology
1048698 Thorough understanding of what constitutes quality information for the user
1048698 Computer cannot substitute human beings
HUMAN RESOURCE DEVELOPMENT SYSTEM
66
HRD
HRD play a very crucial role in organization Henery Ford once said ldquotake out my building take out my machines take out all capital but leave my men with me and I will become Henry Ford againrdquo HRD is considered as key to higher productivity better relations and greater profitability for any organization
According to Daftur
ldquoHRD is a system and process concerned with an organized series of learning activities within specified time limits designed to produce behavioral changes in the learner in such a way that it acquires desired level of competence for present or future rolerdquo
67
HRDORGANIZATION ALIGNMENT MODEL
TRAINING AND DEVELOPMENT
69
NEED FOR TRAINING AND DEVELOPMENT
bull Technological advances bull Organizational complexity bull Organizational tenure bull Human relations movement
70
THE TRAINING PROCESS
71
Needs Assessment
72
bull Lecturesbull Audio Visualsbull On-the-job Training (OJT)bull Programmed Instructionbull Computer Assisted Instruction (CAI)bull Simulation
Methods and Techniques of Training
73
Training Methods for Management Development
1048698 Seminars and Conferences
1048698 Case Study
1048698 Role Playing
1048698 Management Games
1048698 Sensitivity Training
74
bull Implementation of the Training Program
bull Evaluation of Training Program
75
Kirkpatrick Model for Evaluating Effectiveness of Training Programs
1 Reactions
2 Learning
3 Behaviors
Results or Return on Investment (ROI)
76
SPECIAL TOPICS IN TRAINING ANDDEVELOPMENT
bull Cross-cultural Training
bull Orientation Training
bull Team-training and Cross-training
bull Diversity Training
COMPENSATION AND REWARDS
78
COMPENSATION OVERVIEW
Compensation is the process of directly and indirectly rewarding employees on a current or deferred basis for their performance of assigned tasks It consists of
1048698 Direct Financial Compensation Wages salaries bonuses commissions
1048698 Indirect Financial Compensation All financial rewards not included in direct compensation (benefits)
1048698 Non-financial Compensation Satisfaction received from the job or from the psychological andor physical environment of the job
JOB EVALUATION TECHNIQUE
The general step-wise procedure for job evaluation is as under
1 Select the group of jobs
2 Study the job (job analysis)
3 Prepare job description ndash approval
4 Device an evaluation plan ndash common characteristicstraits
5 Establish a committee of raters and rateevaluate
6 Group or classify the jobs
7 Convert job grades to money value along with Wage survey
8 Obtain approval from Union and Management
9 Establish a suitable grievance procedure
COMPONENTS OF COMPENSATION SYSTEM
1 Basic WagesSalaries
2 Dearness Allowance
3 Bonus
4 Commissions
5 Mixed Plans
6 Piece Rate Wages
7 Sign on Bonuses
8 Profit Sharing Payments
9 Fringe Benefits
COMPENSATION EQUITY
1048698 External Equity Employees are paid comparably to those who perform similar jobs in other industries
1048698 Internal Equity Employees are paid according to relative value of their jobs within an organisation
1048698 Employee Equity Individuals performing similar jobs for the same firm are rewarded according to factors unique to the employee such as performance level or seniority
1048698 Team Equity More productive teams receive greater rewards than less productive groups
INTERNATIONAL COMPENSATION
Elements of Expatriate Compensation
Basic Pay Amount of money that an expatriate receives from home country Used for
Bonus calculation
Benefits
1048698 One third of compensation
1048698 Extra vacation special leaves air fares for their families for an annual visit home
emergency leaves
1048698 Housing
1048698 Utilities ndash air conditioner bottled water electricity telephone call expenses
1048698 Car ndash car expenses chauffeur hired vehicle
Helping hands servants gardeners security
1048698 Club subscription
1048698 Educational benefits
Allowances
1048698 COLA ndash cost of living between home country and foreign country inflation
1048698 Relocation allowances
1048698 Hardship allowances
1048698 Separation allowances
1048698 Clothing allowances ndash very cold climates
1048698 Home leave allowances
1048698 Spouse assistance allowances
REWARDS SYSTEM
Reward System as Followed by Organisations
1 Incentive and Rewards
2 Competency Related Pay
3 Skill Based Pay
4 Team Based Rewards
5 Profit Sharing
7 Employee Ownership
8 Statutory and Voluntary Benefits
FORMS OF RECOGNITION
Examples of Formal Recognition
1 Milestone Service Anniversary Awards (5101520 25 years of service)
2 Ideas Improvement amp Performance Awards
3 Service Awards
a) Teamworkleadership
b) Customer Service
c) Citizenship
d) Innovation
e) Attendance
4 Awards would include
a) PlaquesDesk trophies
b) Certificates
c) GiftsCertificates
d) Picture in the webpage
FORMS OF RECOGNITION
Examples of Informal Recognition
1 Team Building Retreats
2 Acknowledgement of DeptDivision goals achieved
3 Project Completion meals
4 Birthday cakes and cards
5 Picnics
6 Staff Appreciation Day
7 Holiday Parties
8 Dress-up Days
9 Corporate Merchandise
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-
30
HISTORY OF ASSESSMENT CENTRES
bull 1942
bull exceptional smartness
bull War Office Selection Boards
31
MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
Types of Psychological Tests
1048698 IQAchievement tests
1048698 Situational tests Situations are given and an individualrsquos behaviorresponse is observed
1048698 Psychometric tests
1048698 Personality Questionnaire
1048698 Interest Questionnaire
1048698 Values Questionnaire
32
MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
bull The Leaderless Group Discussion (LGD)bull In-basket Exercisebull Group Exercisesbull Behavioral Event Interviews
33
Difference between Assessment Centre and Development Center
34
PERFORMANCE PLANNING AND REVIEW
35
GOALS OF PERFORMANCE APPRAISAL
1048698 Each objective should be SMART ndash specific measurable agreed realistic and time-limited
1048698 Each objective must be in an area over which the employee has control
1048698 Give each objective a deadline
1048698 A clear target allows you to measure whether the employee is making the progress you expect
1048698 Provide information to assist in the HR decisions like promotions transfers etc
36
PROCESS OF PERFORMANCE APPRAISAL
bull Establishing Performance Standards
bull Communicating the Standards
37
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
bull Broadly all methods of appraisals can be divided into two different categories
bull 1048698 Past Oriented Methodsbull 1048698 Future Oriented Methods
38
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Past Oriented Methods
1 Rating Scales Rating scales consists of several numerical scales representing job related performance criterions such as dependability initiative output attendance attitude etc Each scales ranges from excellent to poor The total numerical scores are computed and final conclusions are derived
Advantages Adaptability easy to use low cost every type of job can be
evaluated large number of employees covered no formal training required
Disadvantages Raterrsquos biases
2 Checklist Under this method checklist of statements of traits of employee in the
form of Yes or No based questions is prepared Here the rater only does the
reporting or checking and HR department does the actual evaluation
Advantages Economy ease of administration limited training required
standardization
Disadvantages Raters biases use of improper weighs by HR does not allow rater
to give relative ratings
39
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
3 Forced Choice Method The series of statements arranged in the blocks of two or more are given and the rater indicates which statement is true or false The rater is forced to make a choice HR department does actual assessment
Advantages Absence of personal biases because of forced choice
Disadvantages Statements may be wrongly framed
4 Forced Distribution Method Here employees are clustered around a high point on a rating scale Rater is compelled to distribute the employees on all points on the scale It is assumed that the performance is conformed to normal distribution
Advantages Eliminates biasness
Disadvantages Assumption of normal distribution unrealistic errors of central
tendency
40
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
5 Critical Incidents Method The approach is focused on certain critical behaviors
of employee that makes all the difference in the performance Supervisors as and
when they occur record such incidents
Advantages Evaluations are based on actual job behaviors ratings are supported
by descriptions feedback is easy reduces recency biases chances of subordinate
improvement are high
Disadvantages Negative incidents can be prioritized forgetting incidents overly
close supervision feedback may be too much and may appear to be punishment
6 Behaviorally Anchored Rating Scales Statements of effective and ineffective
behaviors determine the points They are said to be behaviorally anchored The
rater is supposed to say which behavior describes the employee performance
Advantages Helps overcome rating errors
Disadvantages Suffers from distortions inherent in most rating techniques
41
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
7 Field Review Method This is an appraisal done by someone outside employeesrsquo own department usually from corporate or HR department
Advantages Useful for managerial level promotions when comparable
information is needed
Disadvantages Outsider is generally not familiar with employees work
environment Observation of actual behaviors not possible
8 Performance Tests amp Observations This is based on the test of knowledge or skills The tests may be written or an actual presentation of skills Tests must be reliable and validated to be useful
Advantages Tests may be apt to measure potential more than actual performance
Disadvantages Tests may suffer if costs of test development or administration are high
42
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Future Oriented Methods
1 Management by Objectives It means management by objectives and the
performance is rated against the achievement of objectives stated by the
management MBO process
(a) Establish goals and desired outcomes for each subordinate
(b) Setting performance standards
(c) Comparison of actual goals with goals attained by the employee
(d) Establish new goals and new strategies for goals not achieved in previous
year
43
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Future Oriented Methods
2 Psychological Appraisals
These appraisals are more directed to assess employeersquos potential for future performance rather than the past one It is done in the form of in-depth interviews psychological tests and discussion with supervisors and review of other evaluations
It is more focused on employees emotional intellectual and motivational and other personal characteristics affecting his performance This approach is slow and costly and may be useful for bright young members who may have considerable potential However quality of these appraisals largely depend upon the skills of psychologists who perform the evaluation
44
1 Leniency amp Severity
2 Central Tendency
3 Halo Effect
4 Primacy amp Recency Effect
5 Spillover Effects
6 Status Effect
Problems of RatingRating Biases
45
PERFORMANCE COACHING
The performance coaching process involves five strategies
1 Creating a partnership role To make employees realize that both employees and manger are responsible for performance and build trust amongst them
2 Commitment Inspiring employees to be committed to the goals
3 Competency development Awareness towards developing skills and
competencies required to reach to organizational goals
4 Perseverance Developing lsquonever say diersquo attitude among organizational members
5 Shaping the environment Creating conditions for employee development
46
THE COACHING DISCUSSION
Kinlawrsquos Approach
Kinlaw suggests a three-stage approach to the coaching discussion as follows
1048698 Confronting or presenting
1048698 Using reactions to develop information
1048698 Resolving or resolution
47
THE COACHING DISCUSSION
bull Fourniesrsquo Approach
bull Step 1 Get the employeersquos agreement that a problem existsbull Step 2 Mutually discuss alternative solutions to the problembull Step 3 Mutually agree on actions to be taken to solve the problembull Step 4 Follow-up to measure resultsbull Step 5 Recognize any achievement when it occurs
48
MENTORING
bull Mentorship is a process where an experienced person provides help guidance support to nurture and develop a less experienced person referred to as a proteacutegeacute apprentice mentee or (person) It improves the self esteem of mentee and increases hisher chance for success
49
MENTORING - Kinds
1048698 New-hire mentorship
1048698 High-potential mentorship
1048698 Mentorship in Education
50
POTENTIAL APPRAISAL CAREER AND SUCCESSION
PLANNING
51
POTENTIAL APPRAISAL
Purpose of Potential Appraisal
Potential appraisal serves the following purposes
1048698 To advise employees about their overall career development and future prospects
1048698 Help the organisation to chalk out succession plans
1048698 Motivate the employees to further develop their skills and competencies
1048698 To identify the training needs
52
POTENTIAL APPRAISAL
Techniques of Potential Appraisal
1048698 Self-appraisals
1048698 Peer appraisals
1048698 Superior appraisals
1048698 MBO
1048698 Psychological and psychometric tests
1048698 Management games like role playing
1048698 Leadership exercises etc
53
CAREER PLANNING
Steps in Career Planning Process
Step One Self Assessment
Step Two Goal Setting
Step Three AcademicCareer Options
Step Four Plan of Action
Step Five Catch Hold of Opportunities
54
bull Succession Planning refers to the process of developing the second line for taking up a higher role in the organization
SUCCESSION PLANNING
55
HR MEASUREMENT AND AUDIT
bull Audit helps the organization have a clear understanding of the lacunae and better align the HR processes with Business goals
bull The audit itself is a diagnostic tool not a prescriptive instrument It helps in identifying what is missing or needs to improve It is most useful when an organization is ready to act on the findings and to evolve its HR function to play a greater strategic role
56
WHY CONDUCT AN HR AUDIT
1048698 It helps promote more professionalism and professional management
1048698 HR audit helps an organization to be aware of its present practices policies
and their adherence
1048698 Benchmarking to improve HR practices
1048698 The organization can benchmark its processes with best-in-class organizations
1048698 HR audit suggest improvement measures keeping the organizational strategic goals and vision in mind
57
THE HR AUDIT PROCESS
InterviewsQuestionnaires
The audit team interviews the following
1048698 Top Management (CEO Unit Heads)
1048698 Line Managers (eg Managers in production quality purchase and marketing)
1048698 HRD Staff
1048698 Workmen and others
Observation and Recording
Follow-up and Corrections done
58
HUMAN RESOURCE ACCOUNTING
bull The American Accounting Associationrsquos Committee on Human Resource Accounting (1973) has defined Human Resource Accounting as ldquothe process of identifying and measuring data about human resources and communicating this information to interested partiesrdquo
bull It is the measurement and reporting of the cost and value of people in organizational Resources
59
METHODS OF HUMAN RESOURCE ACCOUNTING
Methods of Valuing and Accounting of Human Resources
The methods to value and account for human resources can be classified into the following categories
1 Methods based on costs (which include costs incurred by the company to recruit hire train and develop human resources)
2 Methods based on economic value of human resources and the capitalisation of companyrsquos earnings
60
HUMAN RESOURCE ACCOUNTING
Methods based on Cost
Historical Cost Method
Under this method the cost of acquisition ie selection hiring training costs of employees are capitalised and written off over the expected useful life of the employees In case the personnel leave the company before the anticipated period of service then the unamortised portion of costs remaining in the companyrsquos books is written off against the profit and loss account in that year If the period of service exceeds the anticipated time then amortisation of costs is rescheduled
Replacement Cost Method
Under this method the human resources are valued at their replacement cost ie The monetary implications of replacing existing personnel
Standard Cost Method
Under this method standard costs of recruiting hiring training and developing per grade of employees are determined annually The total standard cost for all personnel of the company is the value of human resources
61
HUMAN RESOURCE ACCOUNTING
bull HR Accounting based on Value
bull Economic Value Method
bull Under this method the net present value of incremental cash flows attributed to human resources is taken as the asset value
62
HUMAN RESOURCE INFORMATION SYSTEMS(HRIS)
bull An information system may be automated or manual and involves collectingprocessing transmitting and disseminating data that represents user information
63
HRIS ndash APPLICATION AND UTILITIES
Personnel administration It will encompass information about each employee
such as name address personal details etc
1048698 Salary administration Generate personnel cost reports conduct lsquowhat if
analysisrsquo provide compensation history
1048698 Leave and absence recording Essentially being able to provide comprehensive
method of tracking absences late coming reports on excess leave availed leave
lapsed
1048698 Skill inventory Recording of acquired skills and monitor the skill database at the
employee and organisational level
1048698 Performance appraisal The system should record individual employee
performance appraisal data such as appraisal ratings due date of appraisal
training needs identified during the appraisal process
1048698 Recruitment Record recruitment cost lead time to fill a vacant position
recruitment methods applicant and resume management
1048698 Career planning HRIS System can provide succession plan reports identifying
employees earmarked for future position
64
HRIS ndash DISADVANTAGES
May be expensive ndash financing the technology
1048698 Thorough understanding of what constitutes quality information for the user
1048698 Computer cannot substitute human beings
HUMAN RESOURCE DEVELOPMENT SYSTEM
66
HRD
HRD play a very crucial role in organization Henery Ford once said ldquotake out my building take out my machines take out all capital but leave my men with me and I will become Henry Ford againrdquo HRD is considered as key to higher productivity better relations and greater profitability for any organization
According to Daftur
ldquoHRD is a system and process concerned with an organized series of learning activities within specified time limits designed to produce behavioral changes in the learner in such a way that it acquires desired level of competence for present or future rolerdquo
67
HRDORGANIZATION ALIGNMENT MODEL
TRAINING AND DEVELOPMENT
69
NEED FOR TRAINING AND DEVELOPMENT
bull Technological advances bull Organizational complexity bull Organizational tenure bull Human relations movement
70
THE TRAINING PROCESS
71
Needs Assessment
72
bull Lecturesbull Audio Visualsbull On-the-job Training (OJT)bull Programmed Instructionbull Computer Assisted Instruction (CAI)bull Simulation
Methods and Techniques of Training
73
Training Methods for Management Development
1048698 Seminars and Conferences
1048698 Case Study
1048698 Role Playing
1048698 Management Games
1048698 Sensitivity Training
74
bull Implementation of the Training Program
bull Evaluation of Training Program
75
Kirkpatrick Model for Evaluating Effectiveness of Training Programs
1 Reactions
2 Learning
3 Behaviors
Results or Return on Investment (ROI)
76
SPECIAL TOPICS IN TRAINING ANDDEVELOPMENT
bull Cross-cultural Training
bull Orientation Training
bull Team-training and Cross-training
bull Diversity Training
COMPENSATION AND REWARDS
78
COMPENSATION OVERVIEW
Compensation is the process of directly and indirectly rewarding employees on a current or deferred basis for their performance of assigned tasks It consists of
1048698 Direct Financial Compensation Wages salaries bonuses commissions
1048698 Indirect Financial Compensation All financial rewards not included in direct compensation (benefits)
1048698 Non-financial Compensation Satisfaction received from the job or from the psychological andor physical environment of the job
JOB EVALUATION TECHNIQUE
The general step-wise procedure for job evaluation is as under
1 Select the group of jobs
2 Study the job (job analysis)
3 Prepare job description ndash approval
4 Device an evaluation plan ndash common characteristicstraits
5 Establish a committee of raters and rateevaluate
6 Group or classify the jobs
7 Convert job grades to money value along with Wage survey
8 Obtain approval from Union and Management
9 Establish a suitable grievance procedure
COMPONENTS OF COMPENSATION SYSTEM
1 Basic WagesSalaries
2 Dearness Allowance
3 Bonus
4 Commissions
5 Mixed Plans
6 Piece Rate Wages
7 Sign on Bonuses
8 Profit Sharing Payments
9 Fringe Benefits
COMPENSATION EQUITY
1048698 External Equity Employees are paid comparably to those who perform similar jobs in other industries
1048698 Internal Equity Employees are paid according to relative value of their jobs within an organisation
1048698 Employee Equity Individuals performing similar jobs for the same firm are rewarded according to factors unique to the employee such as performance level or seniority
1048698 Team Equity More productive teams receive greater rewards than less productive groups
INTERNATIONAL COMPENSATION
Elements of Expatriate Compensation
Basic Pay Amount of money that an expatriate receives from home country Used for
Bonus calculation
Benefits
1048698 One third of compensation
1048698 Extra vacation special leaves air fares for their families for an annual visit home
emergency leaves
1048698 Housing
1048698 Utilities ndash air conditioner bottled water electricity telephone call expenses
1048698 Car ndash car expenses chauffeur hired vehicle
Helping hands servants gardeners security
1048698 Club subscription
1048698 Educational benefits
Allowances
1048698 COLA ndash cost of living between home country and foreign country inflation
1048698 Relocation allowances
1048698 Hardship allowances
1048698 Separation allowances
1048698 Clothing allowances ndash very cold climates
1048698 Home leave allowances
1048698 Spouse assistance allowances
REWARDS SYSTEM
Reward System as Followed by Organisations
1 Incentive and Rewards
2 Competency Related Pay
3 Skill Based Pay
4 Team Based Rewards
5 Profit Sharing
7 Employee Ownership
8 Statutory and Voluntary Benefits
FORMS OF RECOGNITION
Examples of Formal Recognition
1 Milestone Service Anniversary Awards (5101520 25 years of service)
2 Ideas Improvement amp Performance Awards
3 Service Awards
a) Teamworkleadership
b) Customer Service
c) Citizenship
d) Innovation
e) Attendance
4 Awards would include
a) PlaquesDesk trophies
b) Certificates
c) GiftsCertificates
d) Picture in the webpage
FORMS OF RECOGNITION
Examples of Informal Recognition
1 Team Building Retreats
2 Acknowledgement of DeptDivision goals achieved
3 Project Completion meals
4 Birthday cakes and cards
5 Picnics
6 Staff Appreciation Day
7 Holiday Parties
8 Dress-up Days
9 Corporate Merchandise
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-
31
MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
Types of Psychological Tests
1048698 IQAchievement tests
1048698 Situational tests Situations are given and an individualrsquos behaviorresponse is observed
1048698 Psychometric tests
1048698 Personality Questionnaire
1048698 Interest Questionnaire
1048698 Values Questionnaire
32
MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
bull The Leaderless Group Discussion (LGD)bull In-basket Exercisebull Group Exercisesbull Behavioral Event Interviews
33
Difference between Assessment Centre and Development Center
34
PERFORMANCE PLANNING AND REVIEW
35
GOALS OF PERFORMANCE APPRAISAL
1048698 Each objective should be SMART ndash specific measurable agreed realistic and time-limited
1048698 Each objective must be in an area over which the employee has control
1048698 Give each objective a deadline
1048698 A clear target allows you to measure whether the employee is making the progress you expect
1048698 Provide information to assist in the HR decisions like promotions transfers etc
36
PROCESS OF PERFORMANCE APPRAISAL
bull Establishing Performance Standards
bull Communicating the Standards
37
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
bull Broadly all methods of appraisals can be divided into two different categories
bull 1048698 Past Oriented Methodsbull 1048698 Future Oriented Methods
38
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Past Oriented Methods
1 Rating Scales Rating scales consists of several numerical scales representing job related performance criterions such as dependability initiative output attendance attitude etc Each scales ranges from excellent to poor The total numerical scores are computed and final conclusions are derived
Advantages Adaptability easy to use low cost every type of job can be
evaluated large number of employees covered no formal training required
Disadvantages Raterrsquos biases
2 Checklist Under this method checklist of statements of traits of employee in the
form of Yes or No based questions is prepared Here the rater only does the
reporting or checking and HR department does the actual evaluation
Advantages Economy ease of administration limited training required
standardization
Disadvantages Raters biases use of improper weighs by HR does not allow rater
to give relative ratings
39
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
3 Forced Choice Method The series of statements arranged in the blocks of two or more are given and the rater indicates which statement is true or false The rater is forced to make a choice HR department does actual assessment
Advantages Absence of personal biases because of forced choice
Disadvantages Statements may be wrongly framed
4 Forced Distribution Method Here employees are clustered around a high point on a rating scale Rater is compelled to distribute the employees on all points on the scale It is assumed that the performance is conformed to normal distribution
Advantages Eliminates biasness
Disadvantages Assumption of normal distribution unrealistic errors of central
tendency
40
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
5 Critical Incidents Method The approach is focused on certain critical behaviors
of employee that makes all the difference in the performance Supervisors as and
when they occur record such incidents
Advantages Evaluations are based on actual job behaviors ratings are supported
by descriptions feedback is easy reduces recency biases chances of subordinate
improvement are high
Disadvantages Negative incidents can be prioritized forgetting incidents overly
close supervision feedback may be too much and may appear to be punishment
6 Behaviorally Anchored Rating Scales Statements of effective and ineffective
behaviors determine the points They are said to be behaviorally anchored The
rater is supposed to say which behavior describes the employee performance
Advantages Helps overcome rating errors
Disadvantages Suffers from distortions inherent in most rating techniques
41
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
7 Field Review Method This is an appraisal done by someone outside employeesrsquo own department usually from corporate or HR department
Advantages Useful for managerial level promotions when comparable
information is needed
Disadvantages Outsider is generally not familiar with employees work
environment Observation of actual behaviors not possible
8 Performance Tests amp Observations This is based on the test of knowledge or skills The tests may be written or an actual presentation of skills Tests must be reliable and validated to be useful
Advantages Tests may be apt to measure potential more than actual performance
Disadvantages Tests may suffer if costs of test development or administration are high
42
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Future Oriented Methods
1 Management by Objectives It means management by objectives and the
performance is rated against the achievement of objectives stated by the
management MBO process
(a) Establish goals and desired outcomes for each subordinate
(b) Setting performance standards
(c) Comparison of actual goals with goals attained by the employee
(d) Establish new goals and new strategies for goals not achieved in previous
year
43
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Future Oriented Methods
2 Psychological Appraisals
These appraisals are more directed to assess employeersquos potential for future performance rather than the past one It is done in the form of in-depth interviews psychological tests and discussion with supervisors and review of other evaluations
It is more focused on employees emotional intellectual and motivational and other personal characteristics affecting his performance This approach is slow and costly and may be useful for bright young members who may have considerable potential However quality of these appraisals largely depend upon the skills of psychologists who perform the evaluation
44
1 Leniency amp Severity
2 Central Tendency
3 Halo Effect
4 Primacy amp Recency Effect
5 Spillover Effects
6 Status Effect
Problems of RatingRating Biases
45
PERFORMANCE COACHING
The performance coaching process involves five strategies
1 Creating a partnership role To make employees realize that both employees and manger are responsible for performance and build trust amongst them
2 Commitment Inspiring employees to be committed to the goals
3 Competency development Awareness towards developing skills and
competencies required to reach to organizational goals
4 Perseverance Developing lsquonever say diersquo attitude among organizational members
5 Shaping the environment Creating conditions for employee development
46
THE COACHING DISCUSSION
Kinlawrsquos Approach
Kinlaw suggests a three-stage approach to the coaching discussion as follows
1048698 Confronting or presenting
1048698 Using reactions to develop information
1048698 Resolving or resolution
47
THE COACHING DISCUSSION
bull Fourniesrsquo Approach
bull Step 1 Get the employeersquos agreement that a problem existsbull Step 2 Mutually discuss alternative solutions to the problembull Step 3 Mutually agree on actions to be taken to solve the problembull Step 4 Follow-up to measure resultsbull Step 5 Recognize any achievement when it occurs
48
MENTORING
bull Mentorship is a process where an experienced person provides help guidance support to nurture and develop a less experienced person referred to as a proteacutegeacute apprentice mentee or (person) It improves the self esteem of mentee and increases hisher chance for success
49
MENTORING - Kinds
1048698 New-hire mentorship
1048698 High-potential mentorship
1048698 Mentorship in Education
50
POTENTIAL APPRAISAL CAREER AND SUCCESSION
PLANNING
51
POTENTIAL APPRAISAL
Purpose of Potential Appraisal
Potential appraisal serves the following purposes
1048698 To advise employees about their overall career development and future prospects
1048698 Help the organisation to chalk out succession plans
1048698 Motivate the employees to further develop their skills and competencies
1048698 To identify the training needs
52
POTENTIAL APPRAISAL
Techniques of Potential Appraisal
1048698 Self-appraisals
1048698 Peer appraisals
1048698 Superior appraisals
1048698 MBO
1048698 Psychological and psychometric tests
1048698 Management games like role playing
1048698 Leadership exercises etc
53
CAREER PLANNING
Steps in Career Planning Process
Step One Self Assessment
Step Two Goal Setting
Step Three AcademicCareer Options
Step Four Plan of Action
Step Five Catch Hold of Opportunities
54
bull Succession Planning refers to the process of developing the second line for taking up a higher role in the organization
SUCCESSION PLANNING
55
HR MEASUREMENT AND AUDIT
bull Audit helps the organization have a clear understanding of the lacunae and better align the HR processes with Business goals
bull The audit itself is a diagnostic tool not a prescriptive instrument It helps in identifying what is missing or needs to improve It is most useful when an organization is ready to act on the findings and to evolve its HR function to play a greater strategic role
56
WHY CONDUCT AN HR AUDIT
1048698 It helps promote more professionalism and professional management
1048698 HR audit helps an organization to be aware of its present practices policies
and their adherence
1048698 Benchmarking to improve HR practices
1048698 The organization can benchmark its processes with best-in-class organizations
1048698 HR audit suggest improvement measures keeping the organizational strategic goals and vision in mind
57
THE HR AUDIT PROCESS
InterviewsQuestionnaires
The audit team interviews the following
1048698 Top Management (CEO Unit Heads)
1048698 Line Managers (eg Managers in production quality purchase and marketing)
1048698 HRD Staff
1048698 Workmen and others
Observation and Recording
Follow-up and Corrections done
58
HUMAN RESOURCE ACCOUNTING
bull The American Accounting Associationrsquos Committee on Human Resource Accounting (1973) has defined Human Resource Accounting as ldquothe process of identifying and measuring data about human resources and communicating this information to interested partiesrdquo
bull It is the measurement and reporting of the cost and value of people in organizational Resources
59
METHODS OF HUMAN RESOURCE ACCOUNTING
Methods of Valuing and Accounting of Human Resources
The methods to value and account for human resources can be classified into the following categories
1 Methods based on costs (which include costs incurred by the company to recruit hire train and develop human resources)
2 Methods based on economic value of human resources and the capitalisation of companyrsquos earnings
60
HUMAN RESOURCE ACCOUNTING
Methods based on Cost
Historical Cost Method
Under this method the cost of acquisition ie selection hiring training costs of employees are capitalised and written off over the expected useful life of the employees In case the personnel leave the company before the anticipated period of service then the unamortised portion of costs remaining in the companyrsquos books is written off against the profit and loss account in that year If the period of service exceeds the anticipated time then amortisation of costs is rescheduled
Replacement Cost Method
Under this method the human resources are valued at their replacement cost ie The monetary implications of replacing existing personnel
Standard Cost Method
Under this method standard costs of recruiting hiring training and developing per grade of employees are determined annually The total standard cost for all personnel of the company is the value of human resources
61
HUMAN RESOURCE ACCOUNTING
bull HR Accounting based on Value
bull Economic Value Method
bull Under this method the net present value of incremental cash flows attributed to human resources is taken as the asset value
62
HUMAN RESOURCE INFORMATION SYSTEMS(HRIS)
bull An information system may be automated or manual and involves collectingprocessing transmitting and disseminating data that represents user information
63
HRIS ndash APPLICATION AND UTILITIES
Personnel administration It will encompass information about each employee
such as name address personal details etc
1048698 Salary administration Generate personnel cost reports conduct lsquowhat if
analysisrsquo provide compensation history
1048698 Leave and absence recording Essentially being able to provide comprehensive
method of tracking absences late coming reports on excess leave availed leave
lapsed
1048698 Skill inventory Recording of acquired skills and monitor the skill database at the
employee and organisational level
1048698 Performance appraisal The system should record individual employee
performance appraisal data such as appraisal ratings due date of appraisal
training needs identified during the appraisal process
1048698 Recruitment Record recruitment cost lead time to fill a vacant position
recruitment methods applicant and resume management
1048698 Career planning HRIS System can provide succession plan reports identifying
employees earmarked for future position
64
HRIS ndash DISADVANTAGES
May be expensive ndash financing the technology
1048698 Thorough understanding of what constitutes quality information for the user
1048698 Computer cannot substitute human beings
HUMAN RESOURCE DEVELOPMENT SYSTEM
66
HRD
HRD play a very crucial role in organization Henery Ford once said ldquotake out my building take out my machines take out all capital but leave my men with me and I will become Henry Ford againrdquo HRD is considered as key to higher productivity better relations and greater profitability for any organization
According to Daftur
ldquoHRD is a system and process concerned with an organized series of learning activities within specified time limits designed to produce behavioral changes in the learner in such a way that it acquires desired level of competence for present or future rolerdquo
67
HRDORGANIZATION ALIGNMENT MODEL
TRAINING AND DEVELOPMENT
69
NEED FOR TRAINING AND DEVELOPMENT
bull Technological advances bull Organizational complexity bull Organizational tenure bull Human relations movement
70
THE TRAINING PROCESS
71
Needs Assessment
72
bull Lecturesbull Audio Visualsbull On-the-job Training (OJT)bull Programmed Instructionbull Computer Assisted Instruction (CAI)bull Simulation
Methods and Techniques of Training
73
Training Methods for Management Development
1048698 Seminars and Conferences
1048698 Case Study
1048698 Role Playing
1048698 Management Games
1048698 Sensitivity Training
74
bull Implementation of the Training Program
bull Evaluation of Training Program
75
Kirkpatrick Model for Evaluating Effectiveness of Training Programs
1 Reactions
2 Learning
3 Behaviors
Results or Return on Investment (ROI)
76
SPECIAL TOPICS IN TRAINING ANDDEVELOPMENT
bull Cross-cultural Training
bull Orientation Training
bull Team-training and Cross-training
bull Diversity Training
COMPENSATION AND REWARDS
78
COMPENSATION OVERVIEW
Compensation is the process of directly and indirectly rewarding employees on a current or deferred basis for their performance of assigned tasks It consists of
1048698 Direct Financial Compensation Wages salaries bonuses commissions
1048698 Indirect Financial Compensation All financial rewards not included in direct compensation (benefits)
1048698 Non-financial Compensation Satisfaction received from the job or from the psychological andor physical environment of the job
JOB EVALUATION TECHNIQUE
The general step-wise procedure for job evaluation is as under
1 Select the group of jobs
2 Study the job (job analysis)
3 Prepare job description ndash approval
4 Device an evaluation plan ndash common characteristicstraits
5 Establish a committee of raters and rateevaluate
6 Group or classify the jobs
7 Convert job grades to money value along with Wage survey
8 Obtain approval from Union and Management
9 Establish a suitable grievance procedure
COMPONENTS OF COMPENSATION SYSTEM
1 Basic WagesSalaries
2 Dearness Allowance
3 Bonus
4 Commissions
5 Mixed Plans
6 Piece Rate Wages
7 Sign on Bonuses
8 Profit Sharing Payments
9 Fringe Benefits
COMPENSATION EQUITY
1048698 External Equity Employees are paid comparably to those who perform similar jobs in other industries
1048698 Internal Equity Employees are paid according to relative value of their jobs within an organisation
1048698 Employee Equity Individuals performing similar jobs for the same firm are rewarded according to factors unique to the employee such as performance level or seniority
1048698 Team Equity More productive teams receive greater rewards than less productive groups
INTERNATIONAL COMPENSATION
Elements of Expatriate Compensation
Basic Pay Amount of money that an expatriate receives from home country Used for
Bonus calculation
Benefits
1048698 One third of compensation
1048698 Extra vacation special leaves air fares for their families for an annual visit home
emergency leaves
1048698 Housing
1048698 Utilities ndash air conditioner bottled water electricity telephone call expenses
1048698 Car ndash car expenses chauffeur hired vehicle
Helping hands servants gardeners security
1048698 Club subscription
1048698 Educational benefits
Allowances
1048698 COLA ndash cost of living between home country and foreign country inflation
1048698 Relocation allowances
1048698 Hardship allowances
1048698 Separation allowances
1048698 Clothing allowances ndash very cold climates
1048698 Home leave allowances
1048698 Spouse assistance allowances
REWARDS SYSTEM
Reward System as Followed by Organisations
1 Incentive and Rewards
2 Competency Related Pay
3 Skill Based Pay
4 Team Based Rewards
5 Profit Sharing
7 Employee Ownership
8 Statutory and Voluntary Benefits
FORMS OF RECOGNITION
Examples of Formal Recognition
1 Milestone Service Anniversary Awards (5101520 25 years of service)
2 Ideas Improvement amp Performance Awards
3 Service Awards
a) Teamworkleadership
b) Customer Service
c) Citizenship
d) Innovation
e) Attendance
4 Awards would include
a) PlaquesDesk trophies
b) Certificates
c) GiftsCertificates
d) Picture in the webpage
FORMS OF RECOGNITION
Examples of Informal Recognition
1 Team Building Retreats
2 Acknowledgement of DeptDivision goals achieved
3 Project Completion meals
4 Birthday cakes and cards
5 Picnics
6 Staff Appreciation Day
7 Holiday Parties
8 Dress-up Days
9 Corporate Merchandise
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-
32
MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
bull The Leaderless Group Discussion (LGD)bull In-basket Exercisebull Group Exercisesbull Behavioral Event Interviews
33
Difference between Assessment Centre and Development Center
34
PERFORMANCE PLANNING AND REVIEW
35
GOALS OF PERFORMANCE APPRAISAL
1048698 Each objective should be SMART ndash specific measurable agreed realistic and time-limited
1048698 Each objective must be in an area over which the employee has control
1048698 Give each objective a deadline
1048698 A clear target allows you to measure whether the employee is making the progress you expect
1048698 Provide information to assist in the HR decisions like promotions transfers etc
36
PROCESS OF PERFORMANCE APPRAISAL
bull Establishing Performance Standards
bull Communicating the Standards
37
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
bull Broadly all methods of appraisals can be divided into two different categories
bull 1048698 Past Oriented Methodsbull 1048698 Future Oriented Methods
38
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Past Oriented Methods
1 Rating Scales Rating scales consists of several numerical scales representing job related performance criterions such as dependability initiative output attendance attitude etc Each scales ranges from excellent to poor The total numerical scores are computed and final conclusions are derived
Advantages Adaptability easy to use low cost every type of job can be
evaluated large number of employees covered no formal training required
Disadvantages Raterrsquos biases
2 Checklist Under this method checklist of statements of traits of employee in the
form of Yes or No based questions is prepared Here the rater only does the
reporting or checking and HR department does the actual evaluation
Advantages Economy ease of administration limited training required
standardization
Disadvantages Raters biases use of improper weighs by HR does not allow rater
to give relative ratings
39
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
3 Forced Choice Method The series of statements arranged in the blocks of two or more are given and the rater indicates which statement is true or false The rater is forced to make a choice HR department does actual assessment
Advantages Absence of personal biases because of forced choice
Disadvantages Statements may be wrongly framed
4 Forced Distribution Method Here employees are clustered around a high point on a rating scale Rater is compelled to distribute the employees on all points on the scale It is assumed that the performance is conformed to normal distribution
Advantages Eliminates biasness
Disadvantages Assumption of normal distribution unrealistic errors of central
tendency
40
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
5 Critical Incidents Method The approach is focused on certain critical behaviors
of employee that makes all the difference in the performance Supervisors as and
when they occur record such incidents
Advantages Evaluations are based on actual job behaviors ratings are supported
by descriptions feedback is easy reduces recency biases chances of subordinate
improvement are high
Disadvantages Negative incidents can be prioritized forgetting incidents overly
close supervision feedback may be too much and may appear to be punishment
6 Behaviorally Anchored Rating Scales Statements of effective and ineffective
behaviors determine the points They are said to be behaviorally anchored The
rater is supposed to say which behavior describes the employee performance
Advantages Helps overcome rating errors
Disadvantages Suffers from distortions inherent in most rating techniques
41
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
7 Field Review Method This is an appraisal done by someone outside employeesrsquo own department usually from corporate or HR department
Advantages Useful for managerial level promotions when comparable
information is needed
Disadvantages Outsider is generally not familiar with employees work
environment Observation of actual behaviors not possible
8 Performance Tests amp Observations This is based on the test of knowledge or skills The tests may be written or an actual presentation of skills Tests must be reliable and validated to be useful
Advantages Tests may be apt to measure potential more than actual performance
Disadvantages Tests may suffer if costs of test development or administration are high
42
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Future Oriented Methods
1 Management by Objectives It means management by objectives and the
performance is rated against the achievement of objectives stated by the
management MBO process
(a) Establish goals and desired outcomes for each subordinate
(b) Setting performance standards
(c) Comparison of actual goals with goals attained by the employee
(d) Establish new goals and new strategies for goals not achieved in previous
year
43
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Future Oriented Methods
2 Psychological Appraisals
These appraisals are more directed to assess employeersquos potential for future performance rather than the past one It is done in the form of in-depth interviews psychological tests and discussion with supervisors and review of other evaluations
It is more focused on employees emotional intellectual and motivational and other personal characteristics affecting his performance This approach is slow and costly and may be useful for bright young members who may have considerable potential However quality of these appraisals largely depend upon the skills of psychologists who perform the evaluation
44
1 Leniency amp Severity
2 Central Tendency
3 Halo Effect
4 Primacy amp Recency Effect
5 Spillover Effects
6 Status Effect
Problems of RatingRating Biases
45
PERFORMANCE COACHING
The performance coaching process involves five strategies
1 Creating a partnership role To make employees realize that both employees and manger are responsible for performance and build trust amongst them
2 Commitment Inspiring employees to be committed to the goals
3 Competency development Awareness towards developing skills and
competencies required to reach to organizational goals
4 Perseverance Developing lsquonever say diersquo attitude among organizational members
5 Shaping the environment Creating conditions for employee development
46
THE COACHING DISCUSSION
Kinlawrsquos Approach
Kinlaw suggests a three-stage approach to the coaching discussion as follows
1048698 Confronting or presenting
1048698 Using reactions to develop information
1048698 Resolving or resolution
47
THE COACHING DISCUSSION
bull Fourniesrsquo Approach
bull Step 1 Get the employeersquos agreement that a problem existsbull Step 2 Mutually discuss alternative solutions to the problembull Step 3 Mutually agree on actions to be taken to solve the problembull Step 4 Follow-up to measure resultsbull Step 5 Recognize any achievement when it occurs
48
MENTORING
bull Mentorship is a process where an experienced person provides help guidance support to nurture and develop a less experienced person referred to as a proteacutegeacute apprentice mentee or (person) It improves the self esteem of mentee and increases hisher chance for success
49
MENTORING - Kinds
1048698 New-hire mentorship
1048698 High-potential mentorship
1048698 Mentorship in Education
50
POTENTIAL APPRAISAL CAREER AND SUCCESSION
PLANNING
51
POTENTIAL APPRAISAL
Purpose of Potential Appraisal
Potential appraisal serves the following purposes
1048698 To advise employees about their overall career development and future prospects
1048698 Help the organisation to chalk out succession plans
1048698 Motivate the employees to further develop their skills and competencies
1048698 To identify the training needs
52
POTENTIAL APPRAISAL
Techniques of Potential Appraisal
1048698 Self-appraisals
1048698 Peer appraisals
1048698 Superior appraisals
1048698 MBO
1048698 Psychological and psychometric tests
1048698 Management games like role playing
1048698 Leadership exercises etc
53
CAREER PLANNING
Steps in Career Planning Process
Step One Self Assessment
Step Two Goal Setting
Step Three AcademicCareer Options
Step Four Plan of Action
Step Five Catch Hold of Opportunities
54
bull Succession Planning refers to the process of developing the second line for taking up a higher role in the organization
SUCCESSION PLANNING
55
HR MEASUREMENT AND AUDIT
bull Audit helps the organization have a clear understanding of the lacunae and better align the HR processes with Business goals
bull The audit itself is a diagnostic tool not a prescriptive instrument It helps in identifying what is missing or needs to improve It is most useful when an organization is ready to act on the findings and to evolve its HR function to play a greater strategic role
56
WHY CONDUCT AN HR AUDIT
1048698 It helps promote more professionalism and professional management
1048698 HR audit helps an organization to be aware of its present practices policies
and their adherence
1048698 Benchmarking to improve HR practices
1048698 The organization can benchmark its processes with best-in-class organizations
1048698 HR audit suggest improvement measures keeping the organizational strategic goals and vision in mind
57
THE HR AUDIT PROCESS
InterviewsQuestionnaires
The audit team interviews the following
1048698 Top Management (CEO Unit Heads)
1048698 Line Managers (eg Managers in production quality purchase and marketing)
1048698 HRD Staff
1048698 Workmen and others
Observation and Recording
Follow-up and Corrections done
58
HUMAN RESOURCE ACCOUNTING
bull The American Accounting Associationrsquos Committee on Human Resource Accounting (1973) has defined Human Resource Accounting as ldquothe process of identifying and measuring data about human resources and communicating this information to interested partiesrdquo
bull It is the measurement and reporting of the cost and value of people in organizational Resources
59
METHODS OF HUMAN RESOURCE ACCOUNTING
Methods of Valuing and Accounting of Human Resources
The methods to value and account for human resources can be classified into the following categories
1 Methods based on costs (which include costs incurred by the company to recruit hire train and develop human resources)
2 Methods based on economic value of human resources and the capitalisation of companyrsquos earnings
60
HUMAN RESOURCE ACCOUNTING
Methods based on Cost
Historical Cost Method
Under this method the cost of acquisition ie selection hiring training costs of employees are capitalised and written off over the expected useful life of the employees In case the personnel leave the company before the anticipated period of service then the unamortised portion of costs remaining in the companyrsquos books is written off against the profit and loss account in that year If the period of service exceeds the anticipated time then amortisation of costs is rescheduled
Replacement Cost Method
Under this method the human resources are valued at their replacement cost ie The monetary implications of replacing existing personnel
Standard Cost Method
Under this method standard costs of recruiting hiring training and developing per grade of employees are determined annually The total standard cost for all personnel of the company is the value of human resources
61
HUMAN RESOURCE ACCOUNTING
bull HR Accounting based on Value
bull Economic Value Method
bull Under this method the net present value of incremental cash flows attributed to human resources is taken as the asset value
62
HUMAN RESOURCE INFORMATION SYSTEMS(HRIS)
bull An information system may be automated or manual and involves collectingprocessing transmitting and disseminating data that represents user information
63
HRIS ndash APPLICATION AND UTILITIES
Personnel administration It will encompass information about each employee
such as name address personal details etc
1048698 Salary administration Generate personnel cost reports conduct lsquowhat if
analysisrsquo provide compensation history
1048698 Leave and absence recording Essentially being able to provide comprehensive
method of tracking absences late coming reports on excess leave availed leave
lapsed
1048698 Skill inventory Recording of acquired skills and monitor the skill database at the
employee and organisational level
1048698 Performance appraisal The system should record individual employee
performance appraisal data such as appraisal ratings due date of appraisal
training needs identified during the appraisal process
1048698 Recruitment Record recruitment cost lead time to fill a vacant position
recruitment methods applicant and resume management
1048698 Career planning HRIS System can provide succession plan reports identifying
employees earmarked for future position
64
HRIS ndash DISADVANTAGES
May be expensive ndash financing the technology
1048698 Thorough understanding of what constitutes quality information for the user
1048698 Computer cannot substitute human beings
HUMAN RESOURCE DEVELOPMENT SYSTEM
66
HRD
HRD play a very crucial role in organization Henery Ford once said ldquotake out my building take out my machines take out all capital but leave my men with me and I will become Henry Ford againrdquo HRD is considered as key to higher productivity better relations and greater profitability for any organization
According to Daftur
ldquoHRD is a system and process concerned with an organized series of learning activities within specified time limits designed to produce behavioral changes in the learner in such a way that it acquires desired level of competence for present or future rolerdquo
67
HRDORGANIZATION ALIGNMENT MODEL
TRAINING AND DEVELOPMENT
69
NEED FOR TRAINING AND DEVELOPMENT
bull Technological advances bull Organizational complexity bull Organizational tenure bull Human relations movement
70
THE TRAINING PROCESS
71
Needs Assessment
72
bull Lecturesbull Audio Visualsbull On-the-job Training (OJT)bull Programmed Instructionbull Computer Assisted Instruction (CAI)bull Simulation
Methods and Techniques of Training
73
Training Methods for Management Development
1048698 Seminars and Conferences
1048698 Case Study
1048698 Role Playing
1048698 Management Games
1048698 Sensitivity Training
74
bull Implementation of the Training Program
bull Evaluation of Training Program
75
Kirkpatrick Model for Evaluating Effectiveness of Training Programs
1 Reactions
2 Learning
3 Behaviors
Results or Return on Investment (ROI)
76
SPECIAL TOPICS IN TRAINING ANDDEVELOPMENT
bull Cross-cultural Training
bull Orientation Training
bull Team-training and Cross-training
bull Diversity Training
COMPENSATION AND REWARDS
78
COMPENSATION OVERVIEW
Compensation is the process of directly and indirectly rewarding employees on a current or deferred basis for their performance of assigned tasks It consists of
1048698 Direct Financial Compensation Wages salaries bonuses commissions
1048698 Indirect Financial Compensation All financial rewards not included in direct compensation (benefits)
1048698 Non-financial Compensation Satisfaction received from the job or from the psychological andor physical environment of the job
JOB EVALUATION TECHNIQUE
The general step-wise procedure for job evaluation is as under
1 Select the group of jobs
2 Study the job (job analysis)
3 Prepare job description ndash approval
4 Device an evaluation plan ndash common characteristicstraits
5 Establish a committee of raters and rateevaluate
6 Group or classify the jobs
7 Convert job grades to money value along with Wage survey
8 Obtain approval from Union and Management
9 Establish a suitable grievance procedure
COMPONENTS OF COMPENSATION SYSTEM
1 Basic WagesSalaries
2 Dearness Allowance
3 Bonus
4 Commissions
5 Mixed Plans
6 Piece Rate Wages
7 Sign on Bonuses
8 Profit Sharing Payments
9 Fringe Benefits
COMPENSATION EQUITY
1048698 External Equity Employees are paid comparably to those who perform similar jobs in other industries
1048698 Internal Equity Employees are paid according to relative value of their jobs within an organisation
1048698 Employee Equity Individuals performing similar jobs for the same firm are rewarded according to factors unique to the employee such as performance level or seniority
1048698 Team Equity More productive teams receive greater rewards than less productive groups
INTERNATIONAL COMPENSATION
Elements of Expatriate Compensation
Basic Pay Amount of money that an expatriate receives from home country Used for
Bonus calculation
Benefits
1048698 One third of compensation
1048698 Extra vacation special leaves air fares for their families for an annual visit home
emergency leaves
1048698 Housing
1048698 Utilities ndash air conditioner bottled water electricity telephone call expenses
1048698 Car ndash car expenses chauffeur hired vehicle
Helping hands servants gardeners security
1048698 Club subscription
1048698 Educational benefits
Allowances
1048698 COLA ndash cost of living between home country and foreign country inflation
1048698 Relocation allowances
1048698 Hardship allowances
1048698 Separation allowances
1048698 Clothing allowances ndash very cold climates
1048698 Home leave allowances
1048698 Spouse assistance allowances
REWARDS SYSTEM
Reward System as Followed by Organisations
1 Incentive and Rewards
2 Competency Related Pay
3 Skill Based Pay
4 Team Based Rewards
5 Profit Sharing
7 Employee Ownership
8 Statutory and Voluntary Benefits
FORMS OF RECOGNITION
Examples of Formal Recognition
1 Milestone Service Anniversary Awards (5101520 25 years of service)
2 Ideas Improvement amp Performance Awards
3 Service Awards
a) Teamworkleadership
b) Customer Service
c) Citizenship
d) Innovation
e) Attendance
4 Awards would include
a) PlaquesDesk trophies
b) Certificates
c) GiftsCertificates
d) Picture in the webpage
FORMS OF RECOGNITION
Examples of Informal Recognition
1 Team Building Retreats
2 Acknowledgement of DeptDivision goals achieved
3 Project Completion meals
4 Birthday cakes and cards
5 Picnics
6 Staff Appreciation Day
7 Holiday Parties
8 Dress-up Days
9 Corporate Merchandise
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-
33
Difference between Assessment Centre and Development Center
34
PERFORMANCE PLANNING AND REVIEW
35
GOALS OF PERFORMANCE APPRAISAL
1048698 Each objective should be SMART ndash specific measurable agreed realistic and time-limited
1048698 Each objective must be in an area over which the employee has control
1048698 Give each objective a deadline
1048698 A clear target allows you to measure whether the employee is making the progress you expect
1048698 Provide information to assist in the HR decisions like promotions transfers etc
36
PROCESS OF PERFORMANCE APPRAISAL
bull Establishing Performance Standards
bull Communicating the Standards
37
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
bull Broadly all methods of appraisals can be divided into two different categories
bull 1048698 Past Oriented Methodsbull 1048698 Future Oriented Methods
38
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Past Oriented Methods
1 Rating Scales Rating scales consists of several numerical scales representing job related performance criterions such as dependability initiative output attendance attitude etc Each scales ranges from excellent to poor The total numerical scores are computed and final conclusions are derived
Advantages Adaptability easy to use low cost every type of job can be
evaluated large number of employees covered no formal training required
Disadvantages Raterrsquos biases
2 Checklist Under this method checklist of statements of traits of employee in the
form of Yes or No based questions is prepared Here the rater only does the
reporting or checking and HR department does the actual evaluation
Advantages Economy ease of administration limited training required
standardization
Disadvantages Raters biases use of improper weighs by HR does not allow rater
to give relative ratings
39
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
3 Forced Choice Method The series of statements arranged in the blocks of two or more are given and the rater indicates which statement is true or false The rater is forced to make a choice HR department does actual assessment
Advantages Absence of personal biases because of forced choice
Disadvantages Statements may be wrongly framed
4 Forced Distribution Method Here employees are clustered around a high point on a rating scale Rater is compelled to distribute the employees on all points on the scale It is assumed that the performance is conformed to normal distribution
Advantages Eliminates biasness
Disadvantages Assumption of normal distribution unrealistic errors of central
tendency
40
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
5 Critical Incidents Method The approach is focused on certain critical behaviors
of employee that makes all the difference in the performance Supervisors as and
when they occur record such incidents
Advantages Evaluations are based on actual job behaviors ratings are supported
by descriptions feedback is easy reduces recency biases chances of subordinate
improvement are high
Disadvantages Negative incidents can be prioritized forgetting incidents overly
close supervision feedback may be too much and may appear to be punishment
6 Behaviorally Anchored Rating Scales Statements of effective and ineffective
behaviors determine the points They are said to be behaviorally anchored The
rater is supposed to say which behavior describes the employee performance
Advantages Helps overcome rating errors
Disadvantages Suffers from distortions inherent in most rating techniques
41
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
7 Field Review Method This is an appraisal done by someone outside employeesrsquo own department usually from corporate or HR department
Advantages Useful for managerial level promotions when comparable
information is needed
Disadvantages Outsider is generally not familiar with employees work
environment Observation of actual behaviors not possible
8 Performance Tests amp Observations This is based on the test of knowledge or skills The tests may be written or an actual presentation of skills Tests must be reliable and validated to be useful
Advantages Tests may be apt to measure potential more than actual performance
Disadvantages Tests may suffer if costs of test development or administration are high
42
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Future Oriented Methods
1 Management by Objectives It means management by objectives and the
performance is rated against the achievement of objectives stated by the
management MBO process
(a) Establish goals and desired outcomes for each subordinate
(b) Setting performance standards
(c) Comparison of actual goals with goals attained by the employee
(d) Establish new goals and new strategies for goals not achieved in previous
year
43
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Future Oriented Methods
2 Psychological Appraisals
These appraisals are more directed to assess employeersquos potential for future performance rather than the past one It is done in the form of in-depth interviews psychological tests and discussion with supervisors and review of other evaluations
It is more focused on employees emotional intellectual and motivational and other personal characteristics affecting his performance This approach is slow and costly and may be useful for bright young members who may have considerable potential However quality of these appraisals largely depend upon the skills of psychologists who perform the evaluation
44
1 Leniency amp Severity
2 Central Tendency
3 Halo Effect
4 Primacy amp Recency Effect
5 Spillover Effects
6 Status Effect
Problems of RatingRating Biases
45
PERFORMANCE COACHING
The performance coaching process involves five strategies
1 Creating a partnership role To make employees realize that both employees and manger are responsible for performance and build trust amongst them
2 Commitment Inspiring employees to be committed to the goals
3 Competency development Awareness towards developing skills and
competencies required to reach to organizational goals
4 Perseverance Developing lsquonever say diersquo attitude among organizational members
5 Shaping the environment Creating conditions for employee development
46
THE COACHING DISCUSSION
Kinlawrsquos Approach
Kinlaw suggests a three-stage approach to the coaching discussion as follows
1048698 Confronting or presenting
1048698 Using reactions to develop information
1048698 Resolving or resolution
47
THE COACHING DISCUSSION
bull Fourniesrsquo Approach
bull Step 1 Get the employeersquos agreement that a problem existsbull Step 2 Mutually discuss alternative solutions to the problembull Step 3 Mutually agree on actions to be taken to solve the problembull Step 4 Follow-up to measure resultsbull Step 5 Recognize any achievement when it occurs
48
MENTORING
bull Mentorship is a process where an experienced person provides help guidance support to nurture and develop a less experienced person referred to as a proteacutegeacute apprentice mentee or (person) It improves the self esteem of mentee and increases hisher chance for success
49
MENTORING - Kinds
1048698 New-hire mentorship
1048698 High-potential mentorship
1048698 Mentorship in Education
50
POTENTIAL APPRAISAL CAREER AND SUCCESSION
PLANNING
51
POTENTIAL APPRAISAL
Purpose of Potential Appraisal
Potential appraisal serves the following purposes
1048698 To advise employees about their overall career development and future prospects
1048698 Help the organisation to chalk out succession plans
1048698 Motivate the employees to further develop their skills and competencies
1048698 To identify the training needs
52
POTENTIAL APPRAISAL
Techniques of Potential Appraisal
1048698 Self-appraisals
1048698 Peer appraisals
1048698 Superior appraisals
1048698 MBO
1048698 Psychological and psychometric tests
1048698 Management games like role playing
1048698 Leadership exercises etc
53
CAREER PLANNING
Steps in Career Planning Process
Step One Self Assessment
Step Two Goal Setting
Step Three AcademicCareer Options
Step Four Plan of Action
Step Five Catch Hold of Opportunities
54
bull Succession Planning refers to the process of developing the second line for taking up a higher role in the organization
SUCCESSION PLANNING
55
HR MEASUREMENT AND AUDIT
bull Audit helps the organization have a clear understanding of the lacunae and better align the HR processes with Business goals
bull The audit itself is a diagnostic tool not a prescriptive instrument It helps in identifying what is missing or needs to improve It is most useful when an organization is ready to act on the findings and to evolve its HR function to play a greater strategic role
56
WHY CONDUCT AN HR AUDIT
1048698 It helps promote more professionalism and professional management
1048698 HR audit helps an organization to be aware of its present practices policies
and their adherence
1048698 Benchmarking to improve HR practices
1048698 The organization can benchmark its processes with best-in-class organizations
1048698 HR audit suggest improvement measures keeping the organizational strategic goals and vision in mind
57
THE HR AUDIT PROCESS
InterviewsQuestionnaires
The audit team interviews the following
1048698 Top Management (CEO Unit Heads)
1048698 Line Managers (eg Managers in production quality purchase and marketing)
1048698 HRD Staff
1048698 Workmen and others
Observation and Recording
Follow-up and Corrections done
58
HUMAN RESOURCE ACCOUNTING
bull The American Accounting Associationrsquos Committee on Human Resource Accounting (1973) has defined Human Resource Accounting as ldquothe process of identifying and measuring data about human resources and communicating this information to interested partiesrdquo
bull It is the measurement and reporting of the cost and value of people in organizational Resources
59
METHODS OF HUMAN RESOURCE ACCOUNTING
Methods of Valuing and Accounting of Human Resources
The methods to value and account for human resources can be classified into the following categories
1 Methods based on costs (which include costs incurred by the company to recruit hire train and develop human resources)
2 Methods based on economic value of human resources and the capitalisation of companyrsquos earnings
60
HUMAN RESOURCE ACCOUNTING
Methods based on Cost
Historical Cost Method
Under this method the cost of acquisition ie selection hiring training costs of employees are capitalised and written off over the expected useful life of the employees In case the personnel leave the company before the anticipated period of service then the unamortised portion of costs remaining in the companyrsquos books is written off against the profit and loss account in that year If the period of service exceeds the anticipated time then amortisation of costs is rescheduled
Replacement Cost Method
Under this method the human resources are valued at their replacement cost ie The monetary implications of replacing existing personnel
Standard Cost Method
Under this method standard costs of recruiting hiring training and developing per grade of employees are determined annually The total standard cost for all personnel of the company is the value of human resources
61
HUMAN RESOURCE ACCOUNTING
bull HR Accounting based on Value
bull Economic Value Method
bull Under this method the net present value of incremental cash flows attributed to human resources is taken as the asset value
62
HUMAN RESOURCE INFORMATION SYSTEMS(HRIS)
bull An information system may be automated or manual and involves collectingprocessing transmitting and disseminating data that represents user information
63
HRIS ndash APPLICATION AND UTILITIES
Personnel administration It will encompass information about each employee
such as name address personal details etc
1048698 Salary administration Generate personnel cost reports conduct lsquowhat if
analysisrsquo provide compensation history
1048698 Leave and absence recording Essentially being able to provide comprehensive
method of tracking absences late coming reports on excess leave availed leave
lapsed
1048698 Skill inventory Recording of acquired skills and monitor the skill database at the
employee and organisational level
1048698 Performance appraisal The system should record individual employee
performance appraisal data such as appraisal ratings due date of appraisal
training needs identified during the appraisal process
1048698 Recruitment Record recruitment cost lead time to fill a vacant position
recruitment methods applicant and resume management
1048698 Career planning HRIS System can provide succession plan reports identifying
employees earmarked for future position
64
HRIS ndash DISADVANTAGES
May be expensive ndash financing the technology
1048698 Thorough understanding of what constitutes quality information for the user
1048698 Computer cannot substitute human beings
HUMAN RESOURCE DEVELOPMENT SYSTEM
66
HRD
HRD play a very crucial role in organization Henery Ford once said ldquotake out my building take out my machines take out all capital but leave my men with me and I will become Henry Ford againrdquo HRD is considered as key to higher productivity better relations and greater profitability for any organization
According to Daftur
ldquoHRD is a system and process concerned with an organized series of learning activities within specified time limits designed to produce behavioral changes in the learner in such a way that it acquires desired level of competence for present or future rolerdquo
67
HRDORGANIZATION ALIGNMENT MODEL
TRAINING AND DEVELOPMENT
69
NEED FOR TRAINING AND DEVELOPMENT
bull Technological advances bull Organizational complexity bull Organizational tenure bull Human relations movement
70
THE TRAINING PROCESS
71
Needs Assessment
72
bull Lecturesbull Audio Visualsbull On-the-job Training (OJT)bull Programmed Instructionbull Computer Assisted Instruction (CAI)bull Simulation
Methods and Techniques of Training
73
Training Methods for Management Development
1048698 Seminars and Conferences
1048698 Case Study
1048698 Role Playing
1048698 Management Games
1048698 Sensitivity Training
74
bull Implementation of the Training Program
bull Evaluation of Training Program
75
Kirkpatrick Model for Evaluating Effectiveness of Training Programs
1 Reactions
2 Learning
3 Behaviors
Results or Return on Investment (ROI)
76
SPECIAL TOPICS IN TRAINING ANDDEVELOPMENT
bull Cross-cultural Training
bull Orientation Training
bull Team-training and Cross-training
bull Diversity Training
COMPENSATION AND REWARDS
78
COMPENSATION OVERVIEW
Compensation is the process of directly and indirectly rewarding employees on a current or deferred basis for their performance of assigned tasks It consists of
1048698 Direct Financial Compensation Wages salaries bonuses commissions
1048698 Indirect Financial Compensation All financial rewards not included in direct compensation (benefits)
1048698 Non-financial Compensation Satisfaction received from the job or from the psychological andor physical environment of the job
JOB EVALUATION TECHNIQUE
The general step-wise procedure for job evaluation is as under
1 Select the group of jobs
2 Study the job (job analysis)
3 Prepare job description ndash approval
4 Device an evaluation plan ndash common characteristicstraits
5 Establish a committee of raters and rateevaluate
6 Group or classify the jobs
7 Convert job grades to money value along with Wage survey
8 Obtain approval from Union and Management
9 Establish a suitable grievance procedure
COMPONENTS OF COMPENSATION SYSTEM
1 Basic WagesSalaries
2 Dearness Allowance
3 Bonus
4 Commissions
5 Mixed Plans
6 Piece Rate Wages
7 Sign on Bonuses
8 Profit Sharing Payments
9 Fringe Benefits
COMPENSATION EQUITY
1048698 External Equity Employees are paid comparably to those who perform similar jobs in other industries
1048698 Internal Equity Employees are paid according to relative value of their jobs within an organisation
1048698 Employee Equity Individuals performing similar jobs for the same firm are rewarded according to factors unique to the employee such as performance level or seniority
1048698 Team Equity More productive teams receive greater rewards than less productive groups
INTERNATIONAL COMPENSATION
Elements of Expatriate Compensation
Basic Pay Amount of money that an expatriate receives from home country Used for
Bonus calculation
Benefits
1048698 One third of compensation
1048698 Extra vacation special leaves air fares for their families for an annual visit home
emergency leaves
1048698 Housing
1048698 Utilities ndash air conditioner bottled water electricity telephone call expenses
1048698 Car ndash car expenses chauffeur hired vehicle
Helping hands servants gardeners security
1048698 Club subscription
1048698 Educational benefits
Allowances
1048698 COLA ndash cost of living between home country and foreign country inflation
1048698 Relocation allowances
1048698 Hardship allowances
1048698 Separation allowances
1048698 Clothing allowances ndash very cold climates
1048698 Home leave allowances
1048698 Spouse assistance allowances
REWARDS SYSTEM
Reward System as Followed by Organisations
1 Incentive and Rewards
2 Competency Related Pay
3 Skill Based Pay
4 Team Based Rewards
5 Profit Sharing
7 Employee Ownership
8 Statutory and Voluntary Benefits
FORMS OF RECOGNITION
Examples of Formal Recognition
1 Milestone Service Anniversary Awards (5101520 25 years of service)
2 Ideas Improvement amp Performance Awards
3 Service Awards
a) Teamworkleadership
b) Customer Service
c) Citizenship
d) Innovation
e) Attendance
4 Awards would include
a) PlaquesDesk trophies
b) Certificates
c) GiftsCertificates
d) Picture in the webpage
FORMS OF RECOGNITION
Examples of Informal Recognition
1 Team Building Retreats
2 Acknowledgement of DeptDivision goals achieved
3 Project Completion meals
4 Birthday cakes and cards
5 Picnics
6 Staff Appreciation Day
7 Holiday Parties
8 Dress-up Days
9 Corporate Merchandise
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-
34
PERFORMANCE PLANNING AND REVIEW
35
GOALS OF PERFORMANCE APPRAISAL
1048698 Each objective should be SMART ndash specific measurable agreed realistic and time-limited
1048698 Each objective must be in an area over which the employee has control
1048698 Give each objective a deadline
1048698 A clear target allows you to measure whether the employee is making the progress you expect
1048698 Provide information to assist in the HR decisions like promotions transfers etc
36
PROCESS OF PERFORMANCE APPRAISAL
bull Establishing Performance Standards
bull Communicating the Standards
37
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
bull Broadly all methods of appraisals can be divided into two different categories
bull 1048698 Past Oriented Methodsbull 1048698 Future Oriented Methods
38
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Past Oriented Methods
1 Rating Scales Rating scales consists of several numerical scales representing job related performance criterions such as dependability initiative output attendance attitude etc Each scales ranges from excellent to poor The total numerical scores are computed and final conclusions are derived
Advantages Adaptability easy to use low cost every type of job can be
evaluated large number of employees covered no formal training required
Disadvantages Raterrsquos biases
2 Checklist Under this method checklist of statements of traits of employee in the
form of Yes or No based questions is prepared Here the rater only does the
reporting or checking and HR department does the actual evaluation
Advantages Economy ease of administration limited training required
standardization
Disadvantages Raters biases use of improper weighs by HR does not allow rater
to give relative ratings
39
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
3 Forced Choice Method The series of statements arranged in the blocks of two or more are given and the rater indicates which statement is true or false The rater is forced to make a choice HR department does actual assessment
Advantages Absence of personal biases because of forced choice
Disadvantages Statements may be wrongly framed
4 Forced Distribution Method Here employees are clustered around a high point on a rating scale Rater is compelled to distribute the employees on all points on the scale It is assumed that the performance is conformed to normal distribution
Advantages Eliminates biasness
Disadvantages Assumption of normal distribution unrealistic errors of central
tendency
40
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
5 Critical Incidents Method The approach is focused on certain critical behaviors
of employee that makes all the difference in the performance Supervisors as and
when they occur record such incidents
Advantages Evaluations are based on actual job behaviors ratings are supported
by descriptions feedback is easy reduces recency biases chances of subordinate
improvement are high
Disadvantages Negative incidents can be prioritized forgetting incidents overly
close supervision feedback may be too much and may appear to be punishment
6 Behaviorally Anchored Rating Scales Statements of effective and ineffective
behaviors determine the points They are said to be behaviorally anchored The
rater is supposed to say which behavior describes the employee performance
Advantages Helps overcome rating errors
Disadvantages Suffers from distortions inherent in most rating techniques
41
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
7 Field Review Method This is an appraisal done by someone outside employeesrsquo own department usually from corporate or HR department
Advantages Useful for managerial level promotions when comparable
information is needed
Disadvantages Outsider is generally not familiar with employees work
environment Observation of actual behaviors not possible
8 Performance Tests amp Observations This is based on the test of knowledge or skills The tests may be written or an actual presentation of skills Tests must be reliable and validated to be useful
Advantages Tests may be apt to measure potential more than actual performance
Disadvantages Tests may suffer if costs of test development or administration are high
42
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Future Oriented Methods
1 Management by Objectives It means management by objectives and the
performance is rated against the achievement of objectives stated by the
management MBO process
(a) Establish goals and desired outcomes for each subordinate
(b) Setting performance standards
(c) Comparison of actual goals with goals attained by the employee
(d) Establish new goals and new strategies for goals not achieved in previous
year
43
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Future Oriented Methods
2 Psychological Appraisals
These appraisals are more directed to assess employeersquos potential for future performance rather than the past one It is done in the form of in-depth interviews psychological tests and discussion with supervisors and review of other evaluations
It is more focused on employees emotional intellectual and motivational and other personal characteristics affecting his performance This approach is slow and costly and may be useful for bright young members who may have considerable potential However quality of these appraisals largely depend upon the skills of psychologists who perform the evaluation
44
1 Leniency amp Severity
2 Central Tendency
3 Halo Effect
4 Primacy amp Recency Effect
5 Spillover Effects
6 Status Effect
Problems of RatingRating Biases
45
PERFORMANCE COACHING
The performance coaching process involves five strategies
1 Creating a partnership role To make employees realize that both employees and manger are responsible for performance and build trust amongst them
2 Commitment Inspiring employees to be committed to the goals
3 Competency development Awareness towards developing skills and
competencies required to reach to organizational goals
4 Perseverance Developing lsquonever say diersquo attitude among organizational members
5 Shaping the environment Creating conditions for employee development
46
THE COACHING DISCUSSION
Kinlawrsquos Approach
Kinlaw suggests a three-stage approach to the coaching discussion as follows
1048698 Confronting or presenting
1048698 Using reactions to develop information
1048698 Resolving or resolution
47
THE COACHING DISCUSSION
bull Fourniesrsquo Approach
bull Step 1 Get the employeersquos agreement that a problem existsbull Step 2 Mutually discuss alternative solutions to the problembull Step 3 Mutually agree on actions to be taken to solve the problembull Step 4 Follow-up to measure resultsbull Step 5 Recognize any achievement when it occurs
48
MENTORING
bull Mentorship is a process where an experienced person provides help guidance support to nurture and develop a less experienced person referred to as a proteacutegeacute apprentice mentee or (person) It improves the self esteem of mentee and increases hisher chance for success
49
MENTORING - Kinds
1048698 New-hire mentorship
1048698 High-potential mentorship
1048698 Mentorship in Education
50
POTENTIAL APPRAISAL CAREER AND SUCCESSION
PLANNING
51
POTENTIAL APPRAISAL
Purpose of Potential Appraisal
Potential appraisal serves the following purposes
1048698 To advise employees about their overall career development and future prospects
1048698 Help the organisation to chalk out succession plans
1048698 Motivate the employees to further develop their skills and competencies
1048698 To identify the training needs
52
POTENTIAL APPRAISAL
Techniques of Potential Appraisal
1048698 Self-appraisals
1048698 Peer appraisals
1048698 Superior appraisals
1048698 MBO
1048698 Psychological and psychometric tests
1048698 Management games like role playing
1048698 Leadership exercises etc
53
CAREER PLANNING
Steps in Career Planning Process
Step One Self Assessment
Step Two Goal Setting
Step Three AcademicCareer Options
Step Four Plan of Action
Step Five Catch Hold of Opportunities
54
bull Succession Planning refers to the process of developing the second line for taking up a higher role in the organization
SUCCESSION PLANNING
55
HR MEASUREMENT AND AUDIT
bull Audit helps the organization have a clear understanding of the lacunae and better align the HR processes with Business goals
bull The audit itself is a diagnostic tool not a prescriptive instrument It helps in identifying what is missing or needs to improve It is most useful when an organization is ready to act on the findings and to evolve its HR function to play a greater strategic role
56
WHY CONDUCT AN HR AUDIT
1048698 It helps promote more professionalism and professional management
1048698 HR audit helps an organization to be aware of its present practices policies
and their adherence
1048698 Benchmarking to improve HR practices
1048698 The organization can benchmark its processes with best-in-class organizations
1048698 HR audit suggest improvement measures keeping the organizational strategic goals and vision in mind
57
THE HR AUDIT PROCESS
InterviewsQuestionnaires
The audit team interviews the following
1048698 Top Management (CEO Unit Heads)
1048698 Line Managers (eg Managers in production quality purchase and marketing)
1048698 HRD Staff
1048698 Workmen and others
Observation and Recording
Follow-up and Corrections done
58
HUMAN RESOURCE ACCOUNTING
bull The American Accounting Associationrsquos Committee on Human Resource Accounting (1973) has defined Human Resource Accounting as ldquothe process of identifying and measuring data about human resources and communicating this information to interested partiesrdquo
bull It is the measurement and reporting of the cost and value of people in organizational Resources
59
METHODS OF HUMAN RESOURCE ACCOUNTING
Methods of Valuing and Accounting of Human Resources
The methods to value and account for human resources can be classified into the following categories
1 Methods based on costs (which include costs incurred by the company to recruit hire train and develop human resources)
2 Methods based on economic value of human resources and the capitalisation of companyrsquos earnings
60
HUMAN RESOURCE ACCOUNTING
Methods based on Cost
Historical Cost Method
Under this method the cost of acquisition ie selection hiring training costs of employees are capitalised and written off over the expected useful life of the employees In case the personnel leave the company before the anticipated period of service then the unamortised portion of costs remaining in the companyrsquos books is written off against the profit and loss account in that year If the period of service exceeds the anticipated time then amortisation of costs is rescheduled
Replacement Cost Method
Under this method the human resources are valued at their replacement cost ie The monetary implications of replacing existing personnel
Standard Cost Method
Under this method standard costs of recruiting hiring training and developing per grade of employees are determined annually The total standard cost for all personnel of the company is the value of human resources
61
HUMAN RESOURCE ACCOUNTING
bull HR Accounting based on Value
bull Economic Value Method
bull Under this method the net present value of incremental cash flows attributed to human resources is taken as the asset value
62
HUMAN RESOURCE INFORMATION SYSTEMS(HRIS)
bull An information system may be automated or manual and involves collectingprocessing transmitting and disseminating data that represents user information
63
HRIS ndash APPLICATION AND UTILITIES
Personnel administration It will encompass information about each employee
such as name address personal details etc
1048698 Salary administration Generate personnel cost reports conduct lsquowhat if
analysisrsquo provide compensation history
1048698 Leave and absence recording Essentially being able to provide comprehensive
method of tracking absences late coming reports on excess leave availed leave
lapsed
1048698 Skill inventory Recording of acquired skills and monitor the skill database at the
employee and organisational level
1048698 Performance appraisal The system should record individual employee
performance appraisal data such as appraisal ratings due date of appraisal
training needs identified during the appraisal process
1048698 Recruitment Record recruitment cost lead time to fill a vacant position
recruitment methods applicant and resume management
1048698 Career planning HRIS System can provide succession plan reports identifying
employees earmarked for future position
64
HRIS ndash DISADVANTAGES
May be expensive ndash financing the technology
1048698 Thorough understanding of what constitutes quality information for the user
1048698 Computer cannot substitute human beings
HUMAN RESOURCE DEVELOPMENT SYSTEM
66
HRD
HRD play a very crucial role in organization Henery Ford once said ldquotake out my building take out my machines take out all capital but leave my men with me and I will become Henry Ford againrdquo HRD is considered as key to higher productivity better relations and greater profitability for any organization
According to Daftur
ldquoHRD is a system and process concerned with an organized series of learning activities within specified time limits designed to produce behavioral changes in the learner in such a way that it acquires desired level of competence for present or future rolerdquo
67
HRDORGANIZATION ALIGNMENT MODEL
TRAINING AND DEVELOPMENT
69
NEED FOR TRAINING AND DEVELOPMENT
bull Technological advances bull Organizational complexity bull Organizational tenure bull Human relations movement
70
THE TRAINING PROCESS
71
Needs Assessment
72
bull Lecturesbull Audio Visualsbull On-the-job Training (OJT)bull Programmed Instructionbull Computer Assisted Instruction (CAI)bull Simulation
Methods and Techniques of Training
73
Training Methods for Management Development
1048698 Seminars and Conferences
1048698 Case Study
1048698 Role Playing
1048698 Management Games
1048698 Sensitivity Training
74
bull Implementation of the Training Program
bull Evaluation of Training Program
75
Kirkpatrick Model for Evaluating Effectiveness of Training Programs
1 Reactions
2 Learning
3 Behaviors
Results or Return on Investment (ROI)
76
SPECIAL TOPICS IN TRAINING ANDDEVELOPMENT
bull Cross-cultural Training
bull Orientation Training
bull Team-training and Cross-training
bull Diversity Training
COMPENSATION AND REWARDS
78
COMPENSATION OVERVIEW
Compensation is the process of directly and indirectly rewarding employees on a current or deferred basis for their performance of assigned tasks It consists of
1048698 Direct Financial Compensation Wages salaries bonuses commissions
1048698 Indirect Financial Compensation All financial rewards not included in direct compensation (benefits)
1048698 Non-financial Compensation Satisfaction received from the job or from the psychological andor physical environment of the job
JOB EVALUATION TECHNIQUE
The general step-wise procedure for job evaluation is as under
1 Select the group of jobs
2 Study the job (job analysis)
3 Prepare job description ndash approval
4 Device an evaluation plan ndash common characteristicstraits
5 Establish a committee of raters and rateevaluate
6 Group or classify the jobs
7 Convert job grades to money value along with Wage survey
8 Obtain approval from Union and Management
9 Establish a suitable grievance procedure
COMPONENTS OF COMPENSATION SYSTEM
1 Basic WagesSalaries
2 Dearness Allowance
3 Bonus
4 Commissions
5 Mixed Plans
6 Piece Rate Wages
7 Sign on Bonuses
8 Profit Sharing Payments
9 Fringe Benefits
COMPENSATION EQUITY
1048698 External Equity Employees are paid comparably to those who perform similar jobs in other industries
1048698 Internal Equity Employees are paid according to relative value of their jobs within an organisation
1048698 Employee Equity Individuals performing similar jobs for the same firm are rewarded according to factors unique to the employee such as performance level or seniority
1048698 Team Equity More productive teams receive greater rewards than less productive groups
INTERNATIONAL COMPENSATION
Elements of Expatriate Compensation
Basic Pay Amount of money that an expatriate receives from home country Used for
Bonus calculation
Benefits
1048698 One third of compensation
1048698 Extra vacation special leaves air fares for their families for an annual visit home
emergency leaves
1048698 Housing
1048698 Utilities ndash air conditioner bottled water electricity telephone call expenses
1048698 Car ndash car expenses chauffeur hired vehicle
Helping hands servants gardeners security
1048698 Club subscription
1048698 Educational benefits
Allowances
1048698 COLA ndash cost of living between home country and foreign country inflation
1048698 Relocation allowances
1048698 Hardship allowances
1048698 Separation allowances
1048698 Clothing allowances ndash very cold climates
1048698 Home leave allowances
1048698 Spouse assistance allowances
REWARDS SYSTEM
Reward System as Followed by Organisations
1 Incentive and Rewards
2 Competency Related Pay
3 Skill Based Pay
4 Team Based Rewards
5 Profit Sharing
7 Employee Ownership
8 Statutory and Voluntary Benefits
FORMS OF RECOGNITION
Examples of Formal Recognition
1 Milestone Service Anniversary Awards (5101520 25 years of service)
2 Ideas Improvement amp Performance Awards
3 Service Awards
a) Teamworkleadership
b) Customer Service
c) Citizenship
d) Innovation
e) Attendance
4 Awards would include
a) PlaquesDesk trophies
b) Certificates
c) GiftsCertificates
d) Picture in the webpage
FORMS OF RECOGNITION
Examples of Informal Recognition
1 Team Building Retreats
2 Acknowledgement of DeptDivision goals achieved
3 Project Completion meals
4 Birthday cakes and cards
5 Picnics
6 Staff Appreciation Day
7 Holiday Parties
8 Dress-up Days
9 Corporate Merchandise
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-
35
GOALS OF PERFORMANCE APPRAISAL
1048698 Each objective should be SMART ndash specific measurable agreed realistic and time-limited
1048698 Each objective must be in an area over which the employee has control
1048698 Give each objective a deadline
1048698 A clear target allows you to measure whether the employee is making the progress you expect
1048698 Provide information to assist in the HR decisions like promotions transfers etc
36
PROCESS OF PERFORMANCE APPRAISAL
bull Establishing Performance Standards
bull Communicating the Standards
37
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
bull Broadly all methods of appraisals can be divided into two different categories
bull 1048698 Past Oriented Methodsbull 1048698 Future Oriented Methods
38
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Past Oriented Methods
1 Rating Scales Rating scales consists of several numerical scales representing job related performance criterions such as dependability initiative output attendance attitude etc Each scales ranges from excellent to poor The total numerical scores are computed and final conclusions are derived
Advantages Adaptability easy to use low cost every type of job can be
evaluated large number of employees covered no formal training required
Disadvantages Raterrsquos biases
2 Checklist Under this method checklist of statements of traits of employee in the
form of Yes or No based questions is prepared Here the rater only does the
reporting or checking and HR department does the actual evaluation
Advantages Economy ease of administration limited training required
standardization
Disadvantages Raters biases use of improper weighs by HR does not allow rater
to give relative ratings
39
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
3 Forced Choice Method The series of statements arranged in the blocks of two or more are given and the rater indicates which statement is true or false The rater is forced to make a choice HR department does actual assessment
Advantages Absence of personal biases because of forced choice
Disadvantages Statements may be wrongly framed
4 Forced Distribution Method Here employees are clustered around a high point on a rating scale Rater is compelled to distribute the employees on all points on the scale It is assumed that the performance is conformed to normal distribution
Advantages Eliminates biasness
Disadvantages Assumption of normal distribution unrealistic errors of central
tendency
40
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
5 Critical Incidents Method The approach is focused on certain critical behaviors
of employee that makes all the difference in the performance Supervisors as and
when they occur record such incidents
Advantages Evaluations are based on actual job behaviors ratings are supported
by descriptions feedback is easy reduces recency biases chances of subordinate
improvement are high
Disadvantages Negative incidents can be prioritized forgetting incidents overly
close supervision feedback may be too much and may appear to be punishment
6 Behaviorally Anchored Rating Scales Statements of effective and ineffective
behaviors determine the points They are said to be behaviorally anchored The
rater is supposed to say which behavior describes the employee performance
Advantages Helps overcome rating errors
Disadvantages Suffers from distortions inherent in most rating techniques
41
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
7 Field Review Method This is an appraisal done by someone outside employeesrsquo own department usually from corporate or HR department
Advantages Useful for managerial level promotions when comparable
information is needed
Disadvantages Outsider is generally not familiar with employees work
environment Observation of actual behaviors not possible
8 Performance Tests amp Observations This is based on the test of knowledge or skills The tests may be written or an actual presentation of skills Tests must be reliable and validated to be useful
Advantages Tests may be apt to measure potential more than actual performance
Disadvantages Tests may suffer if costs of test development or administration are high
42
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Future Oriented Methods
1 Management by Objectives It means management by objectives and the
performance is rated against the achievement of objectives stated by the
management MBO process
(a) Establish goals and desired outcomes for each subordinate
(b) Setting performance standards
(c) Comparison of actual goals with goals attained by the employee
(d) Establish new goals and new strategies for goals not achieved in previous
year
43
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Future Oriented Methods
2 Psychological Appraisals
These appraisals are more directed to assess employeersquos potential for future performance rather than the past one It is done in the form of in-depth interviews psychological tests and discussion with supervisors and review of other evaluations
It is more focused on employees emotional intellectual and motivational and other personal characteristics affecting his performance This approach is slow and costly and may be useful for bright young members who may have considerable potential However quality of these appraisals largely depend upon the skills of psychologists who perform the evaluation
44
1 Leniency amp Severity
2 Central Tendency
3 Halo Effect
4 Primacy amp Recency Effect
5 Spillover Effects
6 Status Effect
Problems of RatingRating Biases
45
PERFORMANCE COACHING
The performance coaching process involves five strategies
1 Creating a partnership role To make employees realize that both employees and manger are responsible for performance and build trust amongst them
2 Commitment Inspiring employees to be committed to the goals
3 Competency development Awareness towards developing skills and
competencies required to reach to organizational goals
4 Perseverance Developing lsquonever say diersquo attitude among organizational members
5 Shaping the environment Creating conditions for employee development
46
THE COACHING DISCUSSION
Kinlawrsquos Approach
Kinlaw suggests a three-stage approach to the coaching discussion as follows
1048698 Confronting or presenting
1048698 Using reactions to develop information
1048698 Resolving or resolution
47
THE COACHING DISCUSSION
bull Fourniesrsquo Approach
bull Step 1 Get the employeersquos agreement that a problem existsbull Step 2 Mutually discuss alternative solutions to the problembull Step 3 Mutually agree on actions to be taken to solve the problembull Step 4 Follow-up to measure resultsbull Step 5 Recognize any achievement when it occurs
48
MENTORING
bull Mentorship is a process where an experienced person provides help guidance support to nurture and develop a less experienced person referred to as a proteacutegeacute apprentice mentee or (person) It improves the self esteem of mentee and increases hisher chance for success
49
MENTORING - Kinds
1048698 New-hire mentorship
1048698 High-potential mentorship
1048698 Mentorship in Education
50
POTENTIAL APPRAISAL CAREER AND SUCCESSION
PLANNING
51
POTENTIAL APPRAISAL
Purpose of Potential Appraisal
Potential appraisal serves the following purposes
1048698 To advise employees about their overall career development and future prospects
1048698 Help the organisation to chalk out succession plans
1048698 Motivate the employees to further develop their skills and competencies
1048698 To identify the training needs
52
POTENTIAL APPRAISAL
Techniques of Potential Appraisal
1048698 Self-appraisals
1048698 Peer appraisals
1048698 Superior appraisals
1048698 MBO
1048698 Psychological and psychometric tests
1048698 Management games like role playing
1048698 Leadership exercises etc
53
CAREER PLANNING
Steps in Career Planning Process
Step One Self Assessment
Step Two Goal Setting
Step Three AcademicCareer Options
Step Four Plan of Action
Step Five Catch Hold of Opportunities
54
bull Succession Planning refers to the process of developing the second line for taking up a higher role in the organization
SUCCESSION PLANNING
55
HR MEASUREMENT AND AUDIT
bull Audit helps the organization have a clear understanding of the lacunae and better align the HR processes with Business goals
bull The audit itself is a diagnostic tool not a prescriptive instrument It helps in identifying what is missing or needs to improve It is most useful when an organization is ready to act on the findings and to evolve its HR function to play a greater strategic role
56
WHY CONDUCT AN HR AUDIT
1048698 It helps promote more professionalism and professional management
1048698 HR audit helps an organization to be aware of its present practices policies
and their adherence
1048698 Benchmarking to improve HR practices
1048698 The organization can benchmark its processes with best-in-class organizations
1048698 HR audit suggest improvement measures keeping the organizational strategic goals and vision in mind
57
THE HR AUDIT PROCESS
InterviewsQuestionnaires
The audit team interviews the following
1048698 Top Management (CEO Unit Heads)
1048698 Line Managers (eg Managers in production quality purchase and marketing)
1048698 HRD Staff
1048698 Workmen and others
Observation and Recording
Follow-up and Corrections done
58
HUMAN RESOURCE ACCOUNTING
bull The American Accounting Associationrsquos Committee on Human Resource Accounting (1973) has defined Human Resource Accounting as ldquothe process of identifying and measuring data about human resources and communicating this information to interested partiesrdquo
bull It is the measurement and reporting of the cost and value of people in organizational Resources
59
METHODS OF HUMAN RESOURCE ACCOUNTING
Methods of Valuing and Accounting of Human Resources
The methods to value and account for human resources can be classified into the following categories
1 Methods based on costs (which include costs incurred by the company to recruit hire train and develop human resources)
2 Methods based on economic value of human resources and the capitalisation of companyrsquos earnings
60
HUMAN RESOURCE ACCOUNTING
Methods based on Cost
Historical Cost Method
Under this method the cost of acquisition ie selection hiring training costs of employees are capitalised and written off over the expected useful life of the employees In case the personnel leave the company before the anticipated period of service then the unamortised portion of costs remaining in the companyrsquos books is written off against the profit and loss account in that year If the period of service exceeds the anticipated time then amortisation of costs is rescheduled
Replacement Cost Method
Under this method the human resources are valued at their replacement cost ie The monetary implications of replacing existing personnel
Standard Cost Method
Under this method standard costs of recruiting hiring training and developing per grade of employees are determined annually The total standard cost for all personnel of the company is the value of human resources
61
HUMAN RESOURCE ACCOUNTING
bull HR Accounting based on Value
bull Economic Value Method
bull Under this method the net present value of incremental cash flows attributed to human resources is taken as the asset value
62
HUMAN RESOURCE INFORMATION SYSTEMS(HRIS)
bull An information system may be automated or manual and involves collectingprocessing transmitting and disseminating data that represents user information
63
HRIS ndash APPLICATION AND UTILITIES
Personnel administration It will encompass information about each employee
such as name address personal details etc
1048698 Salary administration Generate personnel cost reports conduct lsquowhat if
analysisrsquo provide compensation history
1048698 Leave and absence recording Essentially being able to provide comprehensive
method of tracking absences late coming reports on excess leave availed leave
lapsed
1048698 Skill inventory Recording of acquired skills and monitor the skill database at the
employee and organisational level
1048698 Performance appraisal The system should record individual employee
performance appraisal data such as appraisal ratings due date of appraisal
training needs identified during the appraisal process
1048698 Recruitment Record recruitment cost lead time to fill a vacant position
recruitment methods applicant and resume management
1048698 Career planning HRIS System can provide succession plan reports identifying
employees earmarked for future position
64
HRIS ndash DISADVANTAGES
May be expensive ndash financing the technology
1048698 Thorough understanding of what constitutes quality information for the user
1048698 Computer cannot substitute human beings
HUMAN RESOURCE DEVELOPMENT SYSTEM
66
HRD
HRD play a very crucial role in organization Henery Ford once said ldquotake out my building take out my machines take out all capital but leave my men with me and I will become Henry Ford againrdquo HRD is considered as key to higher productivity better relations and greater profitability for any organization
According to Daftur
ldquoHRD is a system and process concerned with an organized series of learning activities within specified time limits designed to produce behavioral changes in the learner in such a way that it acquires desired level of competence for present or future rolerdquo
67
HRDORGANIZATION ALIGNMENT MODEL
TRAINING AND DEVELOPMENT
69
NEED FOR TRAINING AND DEVELOPMENT
bull Technological advances bull Organizational complexity bull Organizational tenure bull Human relations movement
70
THE TRAINING PROCESS
71
Needs Assessment
72
bull Lecturesbull Audio Visualsbull On-the-job Training (OJT)bull Programmed Instructionbull Computer Assisted Instruction (CAI)bull Simulation
Methods and Techniques of Training
73
Training Methods for Management Development
1048698 Seminars and Conferences
1048698 Case Study
1048698 Role Playing
1048698 Management Games
1048698 Sensitivity Training
74
bull Implementation of the Training Program
bull Evaluation of Training Program
75
Kirkpatrick Model for Evaluating Effectiveness of Training Programs
1 Reactions
2 Learning
3 Behaviors
Results or Return on Investment (ROI)
76
SPECIAL TOPICS IN TRAINING ANDDEVELOPMENT
bull Cross-cultural Training
bull Orientation Training
bull Team-training and Cross-training
bull Diversity Training
COMPENSATION AND REWARDS
78
COMPENSATION OVERVIEW
Compensation is the process of directly and indirectly rewarding employees on a current or deferred basis for their performance of assigned tasks It consists of
1048698 Direct Financial Compensation Wages salaries bonuses commissions
1048698 Indirect Financial Compensation All financial rewards not included in direct compensation (benefits)
1048698 Non-financial Compensation Satisfaction received from the job or from the psychological andor physical environment of the job
JOB EVALUATION TECHNIQUE
The general step-wise procedure for job evaluation is as under
1 Select the group of jobs
2 Study the job (job analysis)
3 Prepare job description ndash approval
4 Device an evaluation plan ndash common characteristicstraits
5 Establish a committee of raters and rateevaluate
6 Group or classify the jobs
7 Convert job grades to money value along with Wage survey
8 Obtain approval from Union and Management
9 Establish a suitable grievance procedure
COMPONENTS OF COMPENSATION SYSTEM
1 Basic WagesSalaries
2 Dearness Allowance
3 Bonus
4 Commissions
5 Mixed Plans
6 Piece Rate Wages
7 Sign on Bonuses
8 Profit Sharing Payments
9 Fringe Benefits
COMPENSATION EQUITY
1048698 External Equity Employees are paid comparably to those who perform similar jobs in other industries
1048698 Internal Equity Employees are paid according to relative value of their jobs within an organisation
1048698 Employee Equity Individuals performing similar jobs for the same firm are rewarded according to factors unique to the employee such as performance level or seniority
1048698 Team Equity More productive teams receive greater rewards than less productive groups
INTERNATIONAL COMPENSATION
Elements of Expatriate Compensation
Basic Pay Amount of money that an expatriate receives from home country Used for
Bonus calculation
Benefits
1048698 One third of compensation
1048698 Extra vacation special leaves air fares for their families for an annual visit home
emergency leaves
1048698 Housing
1048698 Utilities ndash air conditioner bottled water electricity telephone call expenses
1048698 Car ndash car expenses chauffeur hired vehicle
Helping hands servants gardeners security
1048698 Club subscription
1048698 Educational benefits
Allowances
1048698 COLA ndash cost of living between home country and foreign country inflation
1048698 Relocation allowances
1048698 Hardship allowances
1048698 Separation allowances
1048698 Clothing allowances ndash very cold climates
1048698 Home leave allowances
1048698 Spouse assistance allowances
REWARDS SYSTEM
Reward System as Followed by Organisations
1 Incentive and Rewards
2 Competency Related Pay
3 Skill Based Pay
4 Team Based Rewards
5 Profit Sharing
7 Employee Ownership
8 Statutory and Voluntary Benefits
FORMS OF RECOGNITION
Examples of Formal Recognition
1 Milestone Service Anniversary Awards (5101520 25 years of service)
2 Ideas Improvement amp Performance Awards
3 Service Awards
a) Teamworkleadership
b) Customer Service
c) Citizenship
d) Innovation
e) Attendance
4 Awards would include
a) PlaquesDesk trophies
b) Certificates
c) GiftsCertificates
d) Picture in the webpage
FORMS OF RECOGNITION
Examples of Informal Recognition
1 Team Building Retreats
2 Acknowledgement of DeptDivision goals achieved
3 Project Completion meals
4 Birthday cakes and cards
5 Picnics
6 Staff Appreciation Day
7 Holiday Parties
8 Dress-up Days
9 Corporate Merchandise
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-
36
PROCESS OF PERFORMANCE APPRAISAL
bull Establishing Performance Standards
bull Communicating the Standards
37
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
bull Broadly all methods of appraisals can be divided into two different categories
bull 1048698 Past Oriented Methodsbull 1048698 Future Oriented Methods
38
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Past Oriented Methods
1 Rating Scales Rating scales consists of several numerical scales representing job related performance criterions such as dependability initiative output attendance attitude etc Each scales ranges from excellent to poor The total numerical scores are computed and final conclusions are derived
Advantages Adaptability easy to use low cost every type of job can be
evaluated large number of employees covered no formal training required
Disadvantages Raterrsquos biases
2 Checklist Under this method checklist of statements of traits of employee in the
form of Yes or No based questions is prepared Here the rater only does the
reporting or checking and HR department does the actual evaluation
Advantages Economy ease of administration limited training required
standardization
Disadvantages Raters biases use of improper weighs by HR does not allow rater
to give relative ratings
39
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
3 Forced Choice Method The series of statements arranged in the blocks of two or more are given and the rater indicates which statement is true or false The rater is forced to make a choice HR department does actual assessment
Advantages Absence of personal biases because of forced choice
Disadvantages Statements may be wrongly framed
4 Forced Distribution Method Here employees are clustered around a high point on a rating scale Rater is compelled to distribute the employees on all points on the scale It is assumed that the performance is conformed to normal distribution
Advantages Eliminates biasness
Disadvantages Assumption of normal distribution unrealistic errors of central
tendency
40
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
5 Critical Incidents Method The approach is focused on certain critical behaviors
of employee that makes all the difference in the performance Supervisors as and
when they occur record such incidents
Advantages Evaluations are based on actual job behaviors ratings are supported
by descriptions feedback is easy reduces recency biases chances of subordinate
improvement are high
Disadvantages Negative incidents can be prioritized forgetting incidents overly
close supervision feedback may be too much and may appear to be punishment
6 Behaviorally Anchored Rating Scales Statements of effective and ineffective
behaviors determine the points They are said to be behaviorally anchored The
rater is supposed to say which behavior describes the employee performance
Advantages Helps overcome rating errors
Disadvantages Suffers from distortions inherent in most rating techniques
41
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
7 Field Review Method This is an appraisal done by someone outside employeesrsquo own department usually from corporate or HR department
Advantages Useful for managerial level promotions when comparable
information is needed
Disadvantages Outsider is generally not familiar with employees work
environment Observation of actual behaviors not possible
8 Performance Tests amp Observations This is based on the test of knowledge or skills The tests may be written or an actual presentation of skills Tests must be reliable and validated to be useful
Advantages Tests may be apt to measure potential more than actual performance
Disadvantages Tests may suffer if costs of test development or administration are high
42
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Future Oriented Methods
1 Management by Objectives It means management by objectives and the
performance is rated against the achievement of objectives stated by the
management MBO process
(a) Establish goals and desired outcomes for each subordinate
(b) Setting performance standards
(c) Comparison of actual goals with goals attained by the employee
(d) Establish new goals and new strategies for goals not achieved in previous
year
43
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Future Oriented Methods
2 Psychological Appraisals
These appraisals are more directed to assess employeersquos potential for future performance rather than the past one It is done in the form of in-depth interviews psychological tests and discussion with supervisors and review of other evaluations
It is more focused on employees emotional intellectual and motivational and other personal characteristics affecting his performance This approach is slow and costly and may be useful for bright young members who may have considerable potential However quality of these appraisals largely depend upon the skills of psychologists who perform the evaluation
44
1 Leniency amp Severity
2 Central Tendency
3 Halo Effect
4 Primacy amp Recency Effect
5 Spillover Effects
6 Status Effect
Problems of RatingRating Biases
45
PERFORMANCE COACHING
The performance coaching process involves five strategies
1 Creating a partnership role To make employees realize that both employees and manger are responsible for performance and build trust amongst them
2 Commitment Inspiring employees to be committed to the goals
3 Competency development Awareness towards developing skills and
competencies required to reach to organizational goals
4 Perseverance Developing lsquonever say diersquo attitude among organizational members
5 Shaping the environment Creating conditions for employee development
46
THE COACHING DISCUSSION
Kinlawrsquos Approach
Kinlaw suggests a three-stage approach to the coaching discussion as follows
1048698 Confronting or presenting
1048698 Using reactions to develop information
1048698 Resolving or resolution
47
THE COACHING DISCUSSION
bull Fourniesrsquo Approach
bull Step 1 Get the employeersquos agreement that a problem existsbull Step 2 Mutually discuss alternative solutions to the problembull Step 3 Mutually agree on actions to be taken to solve the problembull Step 4 Follow-up to measure resultsbull Step 5 Recognize any achievement when it occurs
48
MENTORING
bull Mentorship is a process where an experienced person provides help guidance support to nurture and develop a less experienced person referred to as a proteacutegeacute apprentice mentee or (person) It improves the self esteem of mentee and increases hisher chance for success
49
MENTORING - Kinds
1048698 New-hire mentorship
1048698 High-potential mentorship
1048698 Mentorship in Education
50
POTENTIAL APPRAISAL CAREER AND SUCCESSION
PLANNING
51
POTENTIAL APPRAISAL
Purpose of Potential Appraisal
Potential appraisal serves the following purposes
1048698 To advise employees about their overall career development and future prospects
1048698 Help the organisation to chalk out succession plans
1048698 Motivate the employees to further develop their skills and competencies
1048698 To identify the training needs
52
POTENTIAL APPRAISAL
Techniques of Potential Appraisal
1048698 Self-appraisals
1048698 Peer appraisals
1048698 Superior appraisals
1048698 MBO
1048698 Psychological and psychometric tests
1048698 Management games like role playing
1048698 Leadership exercises etc
53
CAREER PLANNING
Steps in Career Planning Process
Step One Self Assessment
Step Two Goal Setting
Step Three AcademicCareer Options
Step Four Plan of Action
Step Five Catch Hold of Opportunities
54
bull Succession Planning refers to the process of developing the second line for taking up a higher role in the organization
SUCCESSION PLANNING
55
HR MEASUREMENT AND AUDIT
bull Audit helps the organization have a clear understanding of the lacunae and better align the HR processes with Business goals
bull The audit itself is a diagnostic tool not a prescriptive instrument It helps in identifying what is missing or needs to improve It is most useful when an organization is ready to act on the findings and to evolve its HR function to play a greater strategic role
56
WHY CONDUCT AN HR AUDIT
1048698 It helps promote more professionalism and professional management
1048698 HR audit helps an organization to be aware of its present practices policies
and their adherence
1048698 Benchmarking to improve HR practices
1048698 The organization can benchmark its processes with best-in-class organizations
1048698 HR audit suggest improvement measures keeping the organizational strategic goals and vision in mind
57
THE HR AUDIT PROCESS
InterviewsQuestionnaires
The audit team interviews the following
1048698 Top Management (CEO Unit Heads)
1048698 Line Managers (eg Managers in production quality purchase and marketing)
1048698 HRD Staff
1048698 Workmen and others
Observation and Recording
Follow-up and Corrections done
58
HUMAN RESOURCE ACCOUNTING
bull The American Accounting Associationrsquos Committee on Human Resource Accounting (1973) has defined Human Resource Accounting as ldquothe process of identifying and measuring data about human resources and communicating this information to interested partiesrdquo
bull It is the measurement and reporting of the cost and value of people in organizational Resources
59
METHODS OF HUMAN RESOURCE ACCOUNTING
Methods of Valuing and Accounting of Human Resources
The methods to value and account for human resources can be classified into the following categories
1 Methods based on costs (which include costs incurred by the company to recruit hire train and develop human resources)
2 Methods based on economic value of human resources and the capitalisation of companyrsquos earnings
60
HUMAN RESOURCE ACCOUNTING
Methods based on Cost
Historical Cost Method
Under this method the cost of acquisition ie selection hiring training costs of employees are capitalised and written off over the expected useful life of the employees In case the personnel leave the company before the anticipated period of service then the unamortised portion of costs remaining in the companyrsquos books is written off against the profit and loss account in that year If the period of service exceeds the anticipated time then amortisation of costs is rescheduled
Replacement Cost Method
Under this method the human resources are valued at their replacement cost ie The monetary implications of replacing existing personnel
Standard Cost Method
Under this method standard costs of recruiting hiring training and developing per grade of employees are determined annually The total standard cost for all personnel of the company is the value of human resources
61
HUMAN RESOURCE ACCOUNTING
bull HR Accounting based on Value
bull Economic Value Method
bull Under this method the net present value of incremental cash flows attributed to human resources is taken as the asset value
62
HUMAN RESOURCE INFORMATION SYSTEMS(HRIS)
bull An information system may be automated or manual and involves collectingprocessing transmitting and disseminating data that represents user information
63
HRIS ndash APPLICATION AND UTILITIES
Personnel administration It will encompass information about each employee
such as name address personal details etc
1048698 Salary administration Generate personnel cost reports conduct lsquowhat if
analysisrsquo provide compensation history
1048698 Leave and absence recording Essentially being able to provide comprehensive
method of tracking absences late coming reports on excess leave availed leave
lapsed
1048698 Skill inventory Recording of acquired skills and monitor the skill database at the
employee and organisational level
1048698 Performance appraisal The system should record individual employee
performance appraisal data such as appraisal ratings due date of appraisal
training needs identified during the appraisal process
1048698 Recruitment Record recruitment cost lead time to fill a vacant position
recruitment methods applicant and resume management
1048698 Career planning HRIS System can provide succession plan reports identifying
employees earmarked for future position
64
HRIS ndash DISADVANTAGES
May be expensive ndash financing the technology
1048698 Thorough understanding of what constitutes quality information for the user
1048698 Computer cannot substitute human beings
HUMAN RESOURCE DEVELOPMENT SYSTEM
66
HRD
HRD play a very crucial role in organization Henery Ford once said ldquotake out my building take out my machines take out all capital but leave my men with me and I will become Henry Ford againrdquo HRD is considered as key to higher productivity better relations and greater profitability for any organization
According to Daftur
ldquoHRD is a system and process concerned with an organized series of learning activities within specified time limits designed to produce behavioral changes in the learner in such a way that it acquires desired level of competence for present or future rolerdquo
67
HRDORGANIZATION ALIGNMENT MODEL
TRAINING AND DEVELOPMENT
69
NEED FOR TRAINING AND DEVELOPMENT
bull Technological advances bull Organizational complexity bull Organizational tenure bull Human relations movement
70
THE TRAINING PROCESS
71
Needs Assessment
72
bull Lecturesbull Audio Visualsbull On-the-job Training (OJT)bull Programmed Instructionbull Computer Assisted Instruction (CAI)bull Simulation
Methods and Techniques of Training
73
Training Methods for Management Development
1048698 Seminars and Conferences
1048698 Case Study
1048698 Role Playing
1048698 Management Games
1048698 Sensitivity Training
74
bull Implementation of the Training Program
bull Evaluation of Training Program
75
Kirkpatrick Model for Evaluating Effectiveness of Training Programs
1 Reactions
2 Learning
3 Behaviors
Results or Return on Investment (ROI)
76
SPECIAL TOPICS IN TRAINING ANDDEVELOPMENT
bull Cross-cultural Training
bull Orientation Training
bull Team-training and Cross-training
bull Diversity Training
COMPENSATION AND REWARDS
78
COMPENSATION OVERVIEW
Compensation is the process of directly and indirectly rewarding employees on a current or deferred basis for their performance of assigned tasks It consists of
1048698 Direct Financial Compensation Wages salaries bonuses commissions
1048698 Indirect Financial Compensation All financial rewards not included in direct compensation (benefits)
1048698 Non-financial Compensation Satisfaction received from the job or from the psychological andor physical environment of the job
JOB EVALUATION TECHNIQUE
The general step-wise procedure for job evaluation is as under
1 Select the group of jobs
2 Study the job (job analysis)
3 Prepare job description ndash approval
4 Device an evaluation plan ndash common characteristicstraits
5 Establish a committee of raters and rateevaluate
6 Group or classify the jobs
7 Convert job grades to money value along with Wage survey
8 Obtain approval from Union and Management
9 Establish a suitable grievance procedure
COMPONENTS OF COMPENSATION SYSTEM
1 Basic WagesSalaries
2 Dearness Allowance
3 Bonus
4 Commissions
5 Mixed Plans
6 Piece Rate Wages
7 Sign on Bonuses
8 Profit Sharing Payments
9 Fringe Benefits
COMPENSATION EQUITY
1048698 External Equity Employees are paid comparably to those who perform similar jobs in other industries
1048698 Internal Equity Employees are paid according to relative value of their jobs within an organisation
1048698 Employee Equity Individuals performing similar jobs for the same firm are rewarded according to factors unique to the employee such as performance level or seniority
1048698 Team Equity More productive teams receive greater rewards than less productive groups
INTERNATIONAL COMPENSATION
Elements of Expatriate Compensation
Basic Pay Amount of money that an expatriate receives from home country Used for
Bonus calculation
Benefits
1048698 One third of compensation
1048698 Extra vacation special leaves air fares for their families for an annual visit home
emergency leaves
1048698 Housing
1048698 Utilities ndash air conditioner bottled water electricity telephone call expenses
1048698 Car ndash car expenses chauffeur hired vehicle
Helping hands servants gardeners security
1048698 Club subscription
1048698 Educational benefits
Allowances
1048698 COLA ndash cost of living between home country and foreign country inflation
1048698 Relocation allowances
1048698 Hardship allowances
1048698 Separation allowances
1048698 Clothing allowances ndash very cold climates
1048698 Home leave allowances
1048698 Spouse assistance allowances
REWARDS SYSTEM
Reward System as Followed by Organisations
1 Incentive and Rewards
2 Competency Related Pay
3 Skill Based Pay
4 Team Based Rewards
5 Profit Sharing
7 Employee Ownership
8 Statutory and Voluntary Benefits
FORMS OF RECOGNITION
Examples of Formal Recognition
1 Milestone Service Anniversary Awards (5101520 25 years of service)
2 Ideas Improvement amp Performance Awards
3 Service Awards
a) Teamworkleadership
b) Customer Service
c) Citizenship
d) Innovation
e) Attendance
4 Awards would include
a) PlaquesDesk trophies
b) Certificates
c) GiftsCertificates
d) Picture in the webpage
FORMS OF RECOGNITION
Examples of Informal Recognition
1 Team Building Retreats
2 Acknowledgement of DeptDivision goals achieved
3 Project Completion meals
4 Birthday cakes and cards
5 Picnics
6 Staff Appreciation Day
7 Holiday Parties
8 Dress-up Days
9 Corporate Merchandise
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-
37
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
bull Broadly all methods of appraisals can be divided into two different categories
bull 1048698 Past Oriented Methodsbull 1048698 Future Oriented Methods
38
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Past Oriented Methods
1 Rating Scales Rating scales consists of several numerical scales representing job related performance criterions such as dependability initiative output attendance attitude etc Each scales ranges from excellent to poor The total numerical scores are computed and final conclusions are derived
Advantages Adaptability easy to use low cost every type of job can be
evaluated large number of employees covered no formal training required
Disadvantages Raterrsquos biases
2 Checklist Under this method checklist of statements of traits of employee in the
form of Yes or No based questions is prepared Here the rater only does the
reporting or checking and HR department does the actual evaluation
Advantages Economy ease of administration limited training required
standardization
Disadvantages Raters biases use of improper weighs by HR does not allow rater
to give relative ratings
39
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
3 Forced Choice Method The series of statements arranged in the blocks of two or more are given and the rater indicates which statement is true or false The rater is forced to make a choice HR department does actual assessment
Advantages Absence of personal biases because of forced choice
Disadvantages Statements may be wrongly framed
4 Forced Distribution Method Here employees are clustered around a high point on a rating scale Rater is compelled to distribute the employees on all points on the scale It is assumed that the performance is conformed to normal distribution
Advantages Eliminates biasness
Disadvantages Assumption of normal distribution unrealistic errors of central
tendency
40
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
5 Critical Incidents Method The approach is focused on certain critical behaviors
of employee that makes all the difference in the performance Supervisors as and
when they occur record such incidents
Advantages Evaluations are based on actual job behaviors ratings are supported
by descriptions feedback is easy reduces recency biases chances of subordinate
improvement are high
Disadvantages Negative incidents can be prioritized forgetting incidents overly
close supervision feedback may be too much and may appear to be punishment
6 Behaviorally Anchored Rating Scales Statements of effective and ineffective
behaviors determine the points They are said to be behaviorally anchored The
rater is supposed to say which behavior describes the employee performance
Advantages Helps overcome rating errors
Disadvantages Suffers from distortions inherent in most rating techniques
41
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
7 Field Review Method This is an appraisal done by someone outside employeesrsquo own department usually from corporate or HR department
Advantages Useful for managerial level promotions when comparable
information is needed
Disadvantages Outsider is generally not familiar with employees work
environment Observation of actual behaviors not possible
8 Performance Tests amp Observations This is based on the test of knowledge or skills The tests may be written or an actual presentation of skills Tests must be reliable and validated to be useful
Advantages Tests may be apt to measure potential more than actual performance
Disadvantages Tests may suffer if costs of test development or administration are high
42
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Future Oriented Methods
1 Management by Objectives It means management by objectives and the
performance is rated against the achievement of objectives stated by the
management MBO process
(a) Establish goals and desired outcomes for each subordinate
(b) Setting performance standards
(c) Comparison of actual goals with goals attained by the employee
(d) Establish new goals and new strategies for goals not achieved in previous
year
43
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Future Oriented Methods
2 Psychological Appraisals
These appraisals are more directed to assess employeersquos potential for future performance rather than the past one It is done in the form of in-depth interviews psychological tests and discussion with supervisors and review of other evaluations
It is more focused on employees emotional intellectual and motivational and other personal characteristics affecting his performance This approach is slow and costly and may be useful for bright young members who may have considerable potential However quality of these appraisals largely depend upon the skills of psychologists who perform the evaluation
44
1 Leniency amp Severity
2 Central Tendency
3 Halo Effect
4 Primacy amp Recency Effect
5 Spillover Effects
6 Status Effect
Problems of RatingRating Biases
45
PERFORMANCE COACHING
The performance coaching process involves five strategies
1 Creating a partnership role To make employees realize that both employees and manger are responsible for performance and build trust amongst them
2 Commitment Inspiring employees to be committed to the goals
3 Competency development Awareness towards developing skills and
competencies required to reach to organizational goals
4 Perseverance Developing lsquonever say diersquo attitude among organizational members
5 Shaping the environment Creating conditions for employee development
46
THE COACHING DISCUSSION
Kinlawrsquos Approach
Kinlaw suggests a three-stage approach to the coaching discussion as follows
1048698 Confronting or presenting
1048698 Using reactions to develop information
1048698 Resolving or resolution
47
THE COACHING DISCUSSION
bull Fourniesrsquo Approach
bull Step 1 Get the employeersquos agreement that a problem existsbull Step 2 Mutually discuss alternative solutions to the problembull Step 3 Mutually agree on actions to be taken to solve the problembull Step 4 Follow-up to measure resultsbull Step 5 Recognize any achievement when it occurs
48
MENTORING
bull Mentorship is a process where an experienced person provides help guidance support to nurture and develop a less experienced person referred to as a proteacutegeacute apprentice mentee or (person) It improves the self esteem of mentee and increases hisher chance for success
49
MENTORING - Kinds
1048698 New-hire mentorship
1048698 High-potential mentorship
1048698 Mentorship in Education
50
POTENTIAL APPRAISAL CAREER AND SUCCESSION
PLANNING
51
POTENTIAL APPRAISAL
Purpose of Potential Appraisal
Potential appraisal serves the following purposes
1048698 To advise employees about their overall career development and future prospects
1048698 Help the organisation to chalk out succession plans
1048698 Motivate the employees to further develop their skills and competencies
1048698 To identify the training needs
52
POTENTIAL APPRAISAL
Techniques of Potential Appraisal
1048698 Self-appraisals
1048698 Peer appraisals
1048698 Superior appraisals
1048698 MBO
1048698 Psychological and psychometric tests
1048698 Management games like role playing
1048698 Leadership exercises etc
53
CAREER PLANNING
Steps in Career Planning Process
Step One Self Assessment
Step Two Goal Setting
Step Three AcademicCareer Options
Step Four Plan of Action
Step Five Catch Hold of Opportunities
54
bull Succession Planning refers to the process of developing the second line for taking up a higher role in the organization
SUCCESSION PLANNING
55
HR MEASUREMENT AND AUDIT
bull Audit helps the organization have a clear understanding of the lacunae and better align the HR processes with Business goals
bull The audit itself is a diagnostic tool not a prescriptive instrument It helps in identifying what is missing or needs to improve It is most useful when an organization is ready to act on the findings and to evolve its HR function to play a greater strategic role
56
WHY CONDUCT AN HR AUDIT
1048698 It helps promote more professionalism and professional management
1048698 HR audit helps an organization to be aware of its present practices policies
and their adherence
1048698 Benchmarking to improve HR practices
1048698 The organization can benchmark its processes with best-in-class organizations
1048698 HR audit suggest improvement measures keeping the organizational strategic goals and vision in mind
57
THE HR AUDIT PROCESS
InterviewsQuestionnaires
The audit team interviews the following
1048698 Top Management (CEO Unit Heads)
1048698 Line Managers (eg Managers in production quality purchase and marketing)
1048698 HRD Staff
1048698 Workmen and others
Observation and Recording
Follow-up and Corrections done
58
HUMAN RESOURCE ACCOUNTING
bull The American Accounting Associationrsquos Committee on Human Resource Accounting (1973) has defined Human Resource Accounting as ldquothe process of identifying and measuring data about human resources and communicating this information to interested partiesrdquo
bull It is the measurement and reporting of the cost and value of people in organizational Resources
59
METHODS OF HUMAN RESOURCE ACCOUNTING
Methods of Valuing and Accounting of Human Resources
The methods to value and account for human resources can be classified into the following categories
1 Methods based on costs (which include costs incurred by the company to recruit hire train and develop human resources)
2 Methods based on economic value of human resources and the capitalisation of companyrsquos earnings
60
HUMAN RESOURCE ACCOUNTING
Methods based on Cost
Historical Cost Method
Under this method the cost of acquisition ie selection hiring training costs of employees are capitalised and written off over the expected useful life of the employees In case the personnel leave the company before the anticipated period of service then the unamortised portion of costs remaining in the companyrsquos books is written off against the profit and loss account in that year If the period of service exceeds the anticipated time then amortisation of costs is rescheduled
Replacement Cost Method
Under this method the human resources are valued at their replacement cost ie The monetary implications of replacing existing personnel
Standard Cost Method
Under this method standard costs of recruiting hiring training and developing per grade of employees are determined annually The total standard cost for all personnel of the company is the value of human resources
61
HUMAN RESOURCE ACCOUNTING
bull HR Accounting based on Value
bull Economic Value Method
bull Under this method the net present value of incremental cash flows attributed to human resources is taken as the asset value
62
HUMAN RESOURCE INFORMATION SYSTEMS(HRIS)
bull An information system may be automated or manual and involves collectingprocessing transmitting and disseminating data that represents user information
63
HRIS ndash APPLICATION AND UTILITIES
Personnel administration It will encompass information about each employee
such as name address personal details etc
1048698 Salary administration Generate personnel cost reports conduct lsquowhat if
analysisrsquo provide compensation history
1048698 Leave and absence recording Essentially being able to provide comprehensive
method of tracking absences late coming reports on excess leave availed leave
lapsed
1048698 Skill inventory Recording of acquired skills and monitor the skill database at the
employee and organisational level
1048698 Performance appraisal The system should record individual employee
performance appraisal data such as appraisal ratings due date of appraisal
training needs identified during the appraisal process
1048698 Recruitment Record recruitment cost lead time to fill a vacant position
recruitment methods applicant and resume management
1048698 Career planning HRIS System can provide succession plan reports identifying
employees earmarked for future position
64
HRIS ndash DISADVANTAGES
May be expensive ndash financing the technology
1048698 Thorough understanding of what constitutes quality information for the user
1048698 Computer cannot substitute human beings
HUMAN RESOURCE DEVELOPMENT SYSTEM
66
HRD
HRD play a very crucial role in organization Henery Ford once said ldquotake out my building take out my machines take out all capital but leave my men with me and I will become Henry Ford againrdquo HRD is considered as key to higher productivity better relations and greater profitability for any organization
According to Daftur
ldquoHRD is a system and process concerned with an organized series of learning activities within specified time limits designed to produce behavioral changes in the learner in such a way that it acquires desired level of competence for present or future rolerdquo
67
HRDORGANIZATION ALIGNMENT MODEL
TRAINING AND DEVELOPMENT
69
NEED FOR TRAINING AND DEVELOPMENT
bull Technological advances bull Organizational complexity bull Organizational tenure bull Human relations movement
70
THE TRAINING PROCESS
71
Needs Assessment
72
bull Lecturesbull Audio Visualsbull On-the-job Training (OJT)bull Programmed Instructionbull Computer Assisted Instruction (CAI)bull Simulation
Methods and Techniques of Training
73
Training Methods for Management Development
1048698 Seminars and Conferences
1048698 Case Study
1048698 Role Playing
1048698 Management Games
1048698 Sensitivity Training
74
bull Implementation of the Training Program
bull Evaluation of Training Program
75
Kirkpatrick Model for Evaluating Effectiveness of Training Programs
1 Reactions
2 Learning
3 Behaviors
Results or Return on Investment (ROI)
76
SPECIAL TOPICS IN TRAINING ANDDEVELOPMENT
bull Cross-cultural Training
bull Orientation Training
bull Team-training and Cross-training
bull Diversity Training
COMPENSATION AND REWARDS
78
COMPENSATION OVERVIEW
Compensation is the process of directly and indirectly rewarding employees on a current or deferred basis for their performance of assigned tasks It consists of
1048698 Direct Financial Compensation Wages salaries bonuses commissions
1048698 Indirect Financial Compensation All financial rewards not included in direct compensation (benefits)
1048698 Non-financial Compensation Satisfaction received from the job or from the psychological andor physical environment of the job
JOB EVALUATION TECHNIQUE
The general step-wise procedure for job evaluation is as under
1 Select the group of jobs
2 Study the job (job analysis)
3 Prepare job description ndash approval
4 Device an evaluation plan ndash common characteristicstraits
5 Establish a committee of raters and rateevaluate
6 Group or classify the jobs
7 Convert job grades to money value along with Wage survey
8 Obtain approval from Union and Management
9 Establish a suitable grievance procedure
COMPONENTS OF COMPENSATION SYSTEM
1 Basic WagesSalaries
2 Dearness Allowance
3 Bonus
4 Commissions
5 Mixed Plans
6 Piece Rate Wages
7 Sign on Bonuses
8 Profit Sharing Payments
9 Fringe Benefits
COMPENSATION EQUITY
1048698 External Equity Employees are paid comparably to those who perform similar jobs in other industries
1048698 Internal Equity Employees are paid according to relative value of their jobs within an organisation
1048698 Employee Equity Individuals performing similar jobs for the same firm are rewarded according to factors unique to the employee such as performance level or seniority
1048698 Team Equity More productive teams receive greater rewards than less productive groups
INTERNATIONAL COMPENSATION
Elements of Expatriate Compensation
Basic Pay Amount of money that an expatriate receives from home country Used for
Bonus calculation
Benefits
1048698 One third of compensation
1048698 Extra vacation special leaves air fares for their families for an annual visit home
emergency leaves
1048698 Housing
1048698 Utilities ndash air conditioner bottled water electricity telephone call expenses
1048698 Car ndash car expenses chauffeur hired vehicle
Helping hands servants gardeners security
1048698 Club subscription
1048698 Educational benefits
Allowances
1048698 COLA ndash cost of living between home country and foreign country inflation
1048698 Relocation allowances
1048698 Hardship allowances
1048698 Separation allowances
1048698 Clothing allowances ndash very cold climates
1048698 Home leave allowances
1048698 Spouse assistance allowances
REWARDS SYSTEM
Reward System as Followed by Organisations
1 Incentive and Rewards
2 Competency Related Pay
3 Skill Based Pay
4 Team Based Rewards
5 Profit Sharing
7 Employee Ownership
8 Statutory and Voluntary Benefits
FORMS OF RECOGNITION
Examples of Formal Recognition
1 Milestone Service Anniversary Awards (5101520 25 years of service)
2 Ideas Improvement amp Performance Awards
3 Service Awards
a) Teamworkleadership
b) Customer Service
c) Citizenship
d) Innovation
e) Attendance
4 Awards would include
a) PlaquesDesk trophies
b) Certificates
c) GiftsCertificates
d) Picture in the webpage
FORMS OF RECOGNITION
Examples of Informal Recognition
1 Team Building Retreats
2 Acknowledgement of DeptDivision goals achieved
3 Project Completion meals
4 Birthday cakes and cards
5 Picnics
6 Staff Appreciation Day
7 Holiday Parties
8 Dress-up Days
9 Corporate Merchandise
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-
38
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Past Oriented Methods
1 Rating Scales Rating scales consists of several numerical scales representing job related performance criterions such as dependability initiative output attendance attitude etc Each scales ranges from excellent to poor The total numerical scores are computed and final conclusions are derived
Advantages Adaptability easy to use low cost every type of job can be
evaluated large number of employees covered no formal training required
Disadvantages Raterrsquos biases
2 Checklist Under this method checklist of statements of traits of employee in the
form of Yes or No based questions is prepared Here the rater only does the
reporting or checking and HR department does the actual evaluation
Advantages Economy ease of administration limited training required
standardization
Disadvantages Raters biases use of improper weighs by HR does not allow rater
to give relative ratings
39
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
3 Forced Choice Method The series of statements arranged in the blocks of two or more are given and the rater indicates which statement is true or false The rater is forced to make a choice HR department does actual assessment
Advantages Absence of personal biases because of forced choice
Disadvantages Statements may be wrongly framed
4 Forced Distribution Method Here employees are clustered around a high point on a rating scale Rater is compelled to distribute the employees on all points on the scale It is assumed that the performance is conformed to normal distribution
Advantages Eliminates biasness
Disadvantages Assumption of normal distribution unrealistic errors of central
tendency
40
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
5 Critical Incidents Method The approach is focused on certain critical behaviors
of employee that makes all the difference in the performance Supervisors as and
when they occur record such incidents
Advantages Evaluations are based on actual job behaviors ratings are supported
by descriptions feedback is easy reduces recency biases chances of subordinate
improvement are high
Disadvantages Negative incidents can be prioritized forgetting incidents overly
close supervision feedback may be too much and may appear to be punishment
6 Behaviorally Anchored Rating Scales Statements of effective and ineffective
behaviors determine the points They are said to be behaviorally anchored The
rater is supposed to say which behavior describes the employee performance
Advantages Helps overcome rating errors
Disadvantages Suffers from distortions inherent in most rating techniques
41
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
7 Field Review Method This is an appraisal done by someone outside employeesrsquo own department usually from corporate or HR department
Advantages Useful for managerial level promotions when comparable
information is needed
Disadvantages Outsider is generally not familiar with employees work
environment Observation of actual behaviors not possible
8 Performance Tests amp Observations This is based on the test of knowledge or skills The tests may be written or an actual presentation of skills Tests must be reliable and validated to be useful
Advantages Tests may be apt to measure potential more than actual performance
Disadvantages Tests may suffer if costs of test development or administration are high
42
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Future Oriented Methods
1 Management by Objectives It means management by objectives and the
performance is rated against the achievement of objectives stated by the
management MBO process
(a) Establish goals and desired outcomes for each subordinate
(b) Setting performance standards
(c) Comparison of actual goals with goals attained by the employee
(d) Establish new goals and new strategies for goals not achieved in previous
year
43
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Future Oriented Methods
2 Psychological Appraisals
These appraisals are more directed to assess employeersquos potential for future performance rather than the past one It is done in the form of in-depth interviews psychological tests and discussion with supervisors and review of other evaluations
It is more focused on employees emotional intellectual and motivational and other personal characteristics affecting his performance This approach is slow and costly and may be useful for bright young members who may have considerable potential However quality of these appraisals largely depend upon the skills of psychologists who perform the evaluation
44
1 Leniency amp Severity
2 Central Tendency
3 Halo Effect
4 Primacy amp Recency Effect
5 Spillover Effects
6 Status Effect
Problems of RatingRating Biases
45
PERFORMANCE COACHING
The performance coaching process involves five strategies
1 Creating a partnership role To make employees realize that both employees and manger are responsible for performance and build trust amongst them
2 Commitment Inspiring employees to be committed to the goals
3 Competency development Awareness towards developing skills and
competencies required to reach to organizational goals
4 Perseverance Developing lsquonever say diersquo attitude among organizational members
5 Shaping the environment Creating conditions for employee development
46
THE COACHING DISCUSSION
Kinlawrsquos Approach
Kinlaw suggests a three-stage approach to the coaching discussion as follows
1048698 Confronting or presenting
1048698 Using reactions to develop information
1048698 Resolving or resolution
47
THE COACHING DISCUSSION
bull Fourniesrsquo Approach
bull Step 1 Get the employeersquos agreement that a problem existsbull Step 2 Mutually discuss alternative solutions to the problembull Step 3 Mutually agree on actions to be taken to solve the problembull Step 4 Follow-up to measure resultsbull Step 5 Recognize any achievement when it occurs
48
MENTORING
bull Mentorship is a process where an experienced person provides help guidance support to nurture and develop a less experienced person referred to as a proteacutegeacute apprentice mentee or (person) It improves the self esteem of mentee and increases hisher chance for success
49
MENTORING - Kinds
1048698 New-hire mentorship
1048698 High-potential mentorship
1048698 Mentorship in Education
50
POTENTIAL APPRAISAL CAREER AND SUCCESSION
PLANNING
51
POTENTIAL APPRAISAL
Purpose of Potential Appraisal
Potential appraisal serves the following purposes
1048698 To advise employees about their overall career development and future prospects
1048698 Help the organisation to chalk out succession plans
1048698 Motivate the employees to further develop their skills and competencies
1048698 To identify the training needs
52
POTENTIAL APPRAISAL
Techniques of Potential Appraisal
1048698 Self-appraisals
1048698 Peer appraisals
1048698 Superior appraisals
1048698 MBO
1048698 Psychological and psychometric tests
1048698 Management games like role playing
1048698 Leadership exercises etc
53
CAREER PLANNING
Steps in Career Planning Process
Step One Self Assessment
Step Two Goal Setting
Step Three AcademicCareer Options
Step Four Plan of Action
Step Five Catch Hold of Opportunities
54
bull Succession Planning refers to the process of developing the second line for taking up a higher role in the organization
SUCCESSION PLANNING
55
HR MEASUREMENT AND AUDIT
bull Audit helps the organization have a clear understanding of the lacunae and better align the HR processes with Business goals
bull The audit itself is a diagnostic tool not a prescriptive instrument It helps in identifying what is missing or needs to improve It is most useful when an organization is ready to act on the findings and to evolve its HR function to play a greater strategic role
56
WHY CONDUCT AN HR AUDIT
1048698 It helps promote more professionalism and professional management
1048698 HR audit helps an organization to be aware of its present practices policies
and their adherence
1048698 Benchmarking to improve HR practices
1048698 The organization can benchmark its processes with best-in-class organizations
1048698 HR audit suggest improvement measures keeping the organizational strategic goals and vision in mind
57
THE HR AUDIT PROCESS
InterviewsQuestionnaires
The audit team interviews the following
1048698 Top Management (CEO Unit Heads)
1048698 Line Managers (eg Managers in production quality purchase and marketing)
1048698 HRD Staff
1048698 Workmen and others
Observation and Recording
Follow-up and Corrections done
58
HUMAN RESOURCE ACCOUNTING
bull The American Accounting Associationrsquos Committee on Human Resource Accounting (1973) has defined Human Resource Accounting as ldquothe process of identifying and measuring data about human resources and communicating this information to interested partiesrdquo
bull It is the measurement and reporting of the cost and value of people in organizational Resources
59
METHODS OF HUMAN RESOURCE ACCOUNTING
Methods of Valuing and Accounting of Human Resources
The methods to value and account for human resources can be classified into the following categories
1 Methods based on costs (which include costs incurred by the company to recruit hire train and develop human resources)
2 Methods based on economic value of human resources and the capitalisation of companyrsquos earnings
60
HUMAN RESOURCE ACCOUNTING
Methods based on Cost
Historical Cost Method
Under this method the cost of acquisition ie selection hiring training costs of employees are capitalised and written off over the expected useful life of the employees In case the personnel leave the company before the anticipated period of service then the unamortised portion of costs remaining in the companyrsquos books is written off against the profit and loss account in that year If the period of service exceeds the anticipated time then amortisation of costs is rescheduled
Replacement Cost Method
Under this method the human resources are valued at their replacement cost ie The monetary implications of replacing existing personnel
Standard Cost Method
Under this method standard costs of recruiting hiring training and developing per grade of employees are determined annually The total standard cost for all personnel of the company is the value of human resources
61
HUMAN RESOURCE ACCOUNTING
bull HR Accounting based on Value
bull Economic Value Method
bull Under this method the net present value of incremental cash flows attributed to human resources is taken as the asset value
62
HUMAN RESOURCE INFORMATION SYSTEMS(HRIS)
bull An information system may be automated or manual and involves collectingprocessing transmitting and disseminating data that represents user information
63
HRIS ndash APPLICATION AND UTILITIES
Personnel administration It will encompass information about each employee
such as name address personal details etc
1048698 Salary administration Generate personnel cost reports conduct lsquowhat if
analysisrsquo provide compensation history
1048698 Leave and absence recording Essentially being able to provide comprehensive
method of tracking absences late coming reports on excess leave availed leave
lapsed
1048698 Skill inventory Recording of acquired skills and monitor the skill database at the
employee and organisational level
1048698 Performance appraisal The system should record individual employee
performance appraisal data such as appraisal ratings due date of appraisal
training needs identified during the appraisal process
1048698 Recruitment Record recruitment cost lead time to fill a vacant position
recruitment methods applicant and resume management
1048698 Career planning HRIS System can provide succession plan reports identifying
employees earmarked for future position
64
HRIS ndash DISADVANTAGES
May be expensive ndash financing the technology
1048698 Thorough understanding of what constitutes quality information for the user
1048698 Computer cannot substitute human beings
HUMAN RESOURCE DEVELOPMENT SYSTEM
66
HRD
HRD play a very crucial role in organization Henery Ford once said ldquotake out my building take out my machines take out all capital but leave my men with me and I will become Henry Ford againrdquo HRD is considered as key to higher productivity better relations and greater profitability for any organization
According to Daftur
ldquoHRD is a system and process concerned with an organized series of learning activities within specified time limits designed to produce behavioral changes in the learner in such a way that it acquires desired level of competence for present or future rolerdquo
67
HRDORGANIZATION ALIGNMENT MODEL
TRAINING AND DEVELOPMENT
69
NEED FOR TRAINING AND DEVELOPMENT
bull Technological advances bull Organizational complexity bull Organizational tenure bull Human relations movement
70
THE TRAINING PROCESS
71
Needs Assessment
72
bull Lecturesbull Audio Visualsbull On-the-job Training (OJT)bull Programmed Instructionbull Computer Assisted Instruction (CAI)bull Simulation
Methods and Techniques of Training
73
Training Methods for Management Development
1048698 Seminars and Conferences
1048698 Case Study
1048698 Role Playing
1048698 Management Games
1048698 Sensitivity Training
74
bull Implementation of the Training Program
bull Evaluation of Training Program
75
Kirkpatrick Model for Evaluating Effectiveness of Training Programs
1 Reactions
2 Learning
3 Behaviors
Results or Return on Investment (ROI)
76
SPECIAL TOPICS IN TRAINING ANDDEVELOPMENT
bull Cross-cultural Training
bull Orientation Training
bull Team-training and Cross-training
bull Diversity Training
COMPENSATION AND REWARDS
78
COMPENSATION OVERVIEW
Compensation is the process of directly and indirectly rewarding employees on a current or deferred basis for their performance of assigned tasks It consists of
1048698 Direct Financial Compensation Wages salaries bonuses commissions
1048698 Indirect Financial Compensation All financial rewards not included in direct compensation (benefits)
1048698 Non-financial Compensation Satisfaction received from the job or from the psychological andor physical environment of the job
JOB EVALUATION TECHNIQUE
The general step-wise procedure for job evaluation is as under
1 Select the group of jobs
2 Study the job (job analysis)
3 Prepare job description ndash approval
4 Device an evaluation plan ndash common characteristicstraits
5 Establish a committee of raters and rateevaluate
6 Group or classify the jobs
7 Convert job grades to money value along with Wage survey
8 Obtain approval from Union and Management
9 Establish a suitable grievance procedure
COMPONENTS OF COMPENSATION SYSTEM
1 Basic WagesSalaries
2 Dearness Allowance
3 Bonus
4 Commissions
5 Mixed Plans
6 Piece Rate Wages
7 Sign on Bonuses
8 Profit Sharing Payments
9 Fringe Benefits
COMPENSATION EQUITY
1048698 External Equity Employees are paid comparably to those who perform similar jobs in other industries
1048698 Internal Equity Employees are paid according to relative value of their jobs within an organisation
1048698 Employee Equity Individuals performing similar jobs for the same firm are rewarded according to factors unique to the employee such as performance level or seniority
1048698 Team Equity More productive teams receive greater rewards than less productive groups
INTERNATIONAL COMPENSATION
Elements of Expatriate Compensation
Basic Pay Amount of money that an expatriate receives from home country Used for
Bonus calculation
Benefits
1048698 One third of compensation
1048698 Extra vacation special leaves air fares for their families for an annual visit home
emergency leaves
1048698 Housing
1048698 Utilities ndash air conditioner bottled water electricity telephone call expenses
1048698 Car ndash car expenses chauffeur hired vehicle
Helping hands servants gardeners security
1048698 Club subscription
1048698 Educational benefits
Allowances
1048698 COLA ndash cost of living between home country and foreign country inflation
1048698 Relocation allowances
1048698 Hardship allowances
1048698 Separation allowances
1048698 Clothing allowances ndash very cold climates
1048698 Home leave allowances
1048698 Spouse assistance allowances
REWARDS SYSTEM
Reward System as Followed by Organisations
1 Incentive and Rewards
2 Competency Related Pay
3 Skill Based Pay
4 Team Based Rewards
5 Profit Sharing
7 Employee Ownership
8 Statutory and Voluntary Benefits
FORMS OF RECOGNITION
Examples of Formal Recognition
1 Milestone Service Anniversary Awards (5101520 25 years of service)
2 Ideas Improvement amp Performance Awards
3 Service Awards
a) Teamworkleadership
b) Customer Service
c) Citizenship
d) Innovation
e) Attendance
4 Awards would include
a) PlaquesDesk trophies
b) Certificates
c) GiftsCertificates
d) Picture in the webpage
FORMS OF RECOGNITION
Examples of Informal Recognition
1 Team Building Retreats
2 Acknowledgement of DeptDivision goals achieved
3 Project Completion meals
4 Birthday cakes and cards
5 Picnics
6 Staff Appreciation Day
7 Holiday Parties
8 Dress-up Days
9 Corporate Merchandise
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-
39
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
3 Forced Choice Method The series of statements arranged in the blocks of two or more are given and the rater indicates which statement is true or false The rater is forced to make a choice HR department does actual assessment
Advantages Absence of personal biases because of forced choice
Disadvantages Statements may be wrongly framed
4 Forced Distribution Method Here employees are clustered around a high point on a rating scale Rater is compelled to distribute the employees on all points on the scale It is assumed that the performance is conformed to normal distribution
Advantages Eliminates biasness
Disadvantages Assumption of normal distribution unrealistic errors of central
tendency
40
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
5 Critical Incidents Method The approach is focused on certain critical behaviors
of employee that makes all the difference in the performance Supervisors as and
when they occur record such incidents
Advantages Evaluations are based on actual job behaviors ratings are supported
by descriptions feedback is easy reduces recency biases chances of subordinate
improvement are high
Disadvantages Negative incidents can be prioritized forgetting incidents overly
close supervision feedback may be too much and may appear to be punishment
6 Behaviorally Anchored Rating Scales Statements of effective and ineffective
behaviors determine the points They are said to be behaviorally anchored The
rater is supposed to say which behavior describes the employee performance
Advantages Helps overcome rating errors
Disadvantages Suffers from distortions inherent in most rating techniques
41
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
7 Field Review Method This is an appraisal done by someone outside employeesrsquo own department usually from corporate or HR department
Advantages Useful for managerial level promotions when comparable
information is needed
Disadvantages Outsider is generally not familiar with employees work
environment Observation of actual behaviors not possible
8 Performance Tests amp Observations This is based on the test of knowledge or skills The tests may be written or an actual presentation of skills Tests must be reliable and validated to be useful
Advantages Tests may be apt to measure potential more than actual performance
Disadvantages Tests may suffer if costs of test development or administration are high
42
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Future Oriented Methods
1 Management by Objectives It means management by objectives and the
performance is rated against the achievement of objectives stated by the
management MBO process
(a) Establish goals and desired outcomes for each subordinate
(b) Setting performance standards
(c) Comparison of actual goals with goals attained by the employee
(d) Establish new goals and new strategies for goals not achieved in previous
year
43
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Future Oriented Methods
2 Psychological Appraisals
These appraisals are more directed to assess employeersquos potential for future performance rather than the past one It is done in the form of in-depth interviews psychological tests and discussion with supervisors and review of other evaluations
It is more focused on employees emotional intellectual and motivational and other personal characteristics affecting his performance This approach is slow and costly and may be useful for bright young members who may have considerable potential However quality of these appraisals largely depend upon the skills of psychologists who perform the evaluation
44
1 Leniency amp Severity
2 Central Tendency
3 Halo Effect
4 Primacy amp Recency Effect
5 Spillover Effects
6 Status Effect
Problems of RatingRating Biases
45
PERFORMANCE COACHING
The performance coaching process involves five strategies
1 Creating a partnership role To make employees realize that both employees and manger are responsible for performance and build trust amongst them
2 Commitment Inspiring employees to be committed to the goals
3 Competency development Awareness towards developing skills and
competencies required to reach to organizational goals
4 Perseverance Developing lsquonever say diersquo attitude among organizational members
5 Shaping the environment Creating conditions for employee development
46
THE COACHING DISCUSSION
Kinlawrsquos Approach
Kinlaw suggests a three-stage approach to the coaching discussion as follows
1048698 Confronting or presenting
1048698 Using reactions to develop information
1048698 Resolving or resolution
47
THE COACHING DISCUSSION
bull Fourniesrsquo Approach
bull Step 1 Get the employeersquos agreement that a problem existsbull Step 2 Mutually discuss alternative solutions to the problembull Step 3 Mutually agree on actions to be taken to solve the problembull Step 4 Follow-up to measure resultsbull Step 5 Recognize any achievement when it occurs
48
MENTORING
bull Mentorship is a process where an experienced person provides help guidance support to nurture and develop a less experienced person referred to as a proteacutegeacute apprentice mentee or (person) It improves the self esteem of mentee and increases hisher chance for success
49
MENTORING - Kinds
1048698 New-hire mentorship
1048698 High-potential mentorship
1048698 Mentorship in Education
50
POTENTIAL APPRAISAL CAREER AND SUCCESSION
PLANNING
51
POTENTIAL APPRAISAL
Purpose of Potential Appraisal
Potential appraisal serves the following purposes
1048698 To advise employees about their overall career development and future prospects
1048698 Help the organisation to chalk out succession plans
1048698 Motivate the employees to further develop their skills and competencies
1048698 To identify the training needs
52
POTENTIAL APPRAISAL
Techniques of Potential Appraisal
1048698 Self-appraisals
1048698 Peer appraisals
1048698 Superior appraisals
1048698 MBO
1048698 Psychological and psychometric tests
1048698 Management games like role playing
1048698 Leadership exercises etc
53
CAREER PLANNING
Steps in Career Planning Process
Step One Self Assessment
Step Two Goal Setting
Step Three AcademicCareer Options
Step Four Plan of Action
Step Five Catch Hold of Opportunities
54
bull Succession Planning refers to the process of developing the second line for taking up a higher role in the organization
SUCCESSION PLANNING
55
HR MEASUREMENT AND AUDIT
bull Audit helps the organization have a clear understanding of the lacunae and better align the HR processes with Business goals
bull The audit itself is a diagnostic tool not a prescriptive instrument It helps in identifying what is missing or needs to improve It is most useful when an organization is ready to act on the findings and to evolve its HR function to play a greater strategic role
56
WHY CONDUCT AN HR AUDIT
1048698 It helps promote more professionalism and professional management
1048698 HR audit helps an organization to be aware of its present practices policies
and their adherence
1048698 Benchmarking to improve HR practices
1048698 The organization can benchmark its processes with best-in-class organizations
1048698 HR audit suggest improvement measures keeping the organizational strategic goals and vision in mind
57
THE HR AUDIT PROCESS
InterviewsQuestionnaires
The audit team interviews the following
1048698 Top Management (CEO Unit Heads)
1048698 Line Managers (eg Managers in production quality purchase and marketing)
1048698 HRD Staff
1048698 Workmen and others
Observation and Recording
Follow-up and Corrections done
58
HUMAN RESOURCE ACCOUNTING
bull The American Accounting Associationrsquos Committee on Human Resource Accounting (1973) has defined Human Resource Accounting as ldquothe process of identifying and measuring data about human resources and communicating this information to interested partiesrdquo
bull It is the measurement and reporting of the cost and value of people in organizational Resources
59
METHODS OF HUMAN RESOURCE ACCOUNTING
Methods of Valuing and Accounting of Human Resources
The methods to value and account for human resources can be classified into the following categories
1 Methods based on costs (which include costs incurred by the company to recruit hire train and develop human resources)
2 Methods based on economic value of human resources and the capitalisation of companyrsquos earnings
60
HUMAN RESOURCE ACCOUNTING
Methods based on Cost
Historical Cost Method
Under this method the cost of acquisition ie selection hiring training costs of employees are capitalised and written off over the expected useful life of the employees In case the personnel leave the company before the anticipated period of service then the unamortised portion of costs remaining in the companyrsquos books is written off against the profit and loss account in that year If the period of service exceeds the anticipated time then amortisation of costs is rescheduled
Replacement Cost Method
Under this method the human resources are valued at their replacement cost ie The monetary implications of replacing existing personnel
Standard Cost Method
Under this method standard costs of recruiting hiring training and developing per grade of employees are determined annually The total standard cost for all personnel of the company is the value of human resources
61
HUMAN RESOURCE ACCOUNTING
bull HR Accounting based on Value
bull Economic Value Method
bull Under this method the net present value of incremental cash flows attributed to human resources is taken as the asset value
62
HUMAN RESOURCE INFORMATION SYSTEMS(HRIS)
bull An information system may be automated or manual and involves collectingprocessing transmitting and disseminating data that represents user information
63
HRIS ndash APPLICATION AND UTILITIES
Personnel administration It will encompass information about each employee
such as name address personal details etc
1048698 Salary administration Generate personnel cost reports conduct lsquowhat if
analysisrsquo provide compensation history
1048698 Leave and absence recording Essentially being able to provide comprehensive
method of tracking absences late coming reports on excess leave availed leave
lapsed
1048698 Skill inventory Recording of acquired skills and monitor the skill database at the
employee and organisational level
1048698 Performance appraisal The system should record individual employee
performance appraisal data such as appraisal ratings due date of appraisal
training needs identified during the appraisal process
1048698 Recruitment Record recruitment cost lead time to fill a vacant position
recruitment methods applicant and resume management
1048698 Career planning HRIS System can provide succession plan reports identifying
employees earmarked for future position
64
HRIS ndash DISADVANTAGES
May be expensive ndash financing the technology
1048698 Thorough understanding of what constitutes quality information for the user
1048698 Computer cannot substitute human beings
HUMAN RESOURCE DEVELOPMENT SYSTEM
66
HRD
HRD play a very crucial role in organization Henery Ford once said ldquotake out my building take out my machines take out all capital but leave my men with me and I will become Henry Ford againrdquo HRD is considered as key to higher productivity better relations and greater profitability for any organization
According to Daftur
ldquoHRD is a system and process concerned with an organized series of learning activities within specified time limits designed to produce behavioral changes in the learner in such a way that it acquires desired level of competence for present or future rolerdquo
67
HRDORGANIZATION ALIGNMENT MODEL
TRAINING AND DEVELOPMENT
69
NEED FOR TRAINING AND DEVELOPMENT
bull Technological advances bull Organizational complexity bull Organizational tenure bull Human relations movement
70
THE TRAINING PROCESS
71
Needs Assessment
72
bull Lecturesbull Audio Visualsbull On-the-job Training (OJT)bull Programmed Instructionbull Computer Assisted Instruction (CAI)bull Simulation
Methods and Techniques of Training
73
Training Methods for Management Development
1048698 Seminars and Conferences
1048698 Case Study
1048698 Role Playing
1048698 Management Games
1048698 Sensitivity Training
74
bull Implementation of the Training Program
bull Evaluation of Training Program
75
Kirkpatrick Model for Evaluating Effectiveness of Training Programs
1 Reactions
2 Learning
3 Behaviors
Results or Return on Investment (ROI)
76
SPECIAL TOPICS IN TRAINING ANDDEVELOPMENT
bull Cross-cultural Training
bull Orientation Training
bull Team-training and Cross-training
bull Diversity Training
COMPENSATION AND REWARDS
78
COMPENSATION OVERVIEW
Compensation is the process of directly and indirectly rewarding employees on a current or deferred basis for their performance of assigned tasks It consists of
1048698 Direct Financial Compensation Wages salaries bonuses commissions
1048698 Indirect Financial Compensation All financial rewards not included in direct compensation (benefits)
1048698 Non-financial Compensation Satisfaction received from the job or from the psychological andor physical environment of the job
JOB EVALUATION TECHNIQUE
The general step-wise procedure for job evaluation is as under
1 Select the group of jobs
2 Study the job (job analysis)
3 Prepare job description ndash approval
4 Device an evaluation plan ndash common characteristicstraits
5 Establish a committee of raters and rateevaluate
6 Group or classify the jobs
7 Convert job grades to money value along with Wage survey
8 Obtain approval from Union and Management
9 Establish a suitable grievance procedure
COMPONENTS OF COMPENSATION SYSTEM
1 Basic WagesSalaries
2 Dearness Allowance
3 Bonus
4 Commissions
5 Mixed Plans
6 Piece Rate Wages
7 Sign on Bonuses
8 Profit Sharing Payments
9 Fringe Benefits
COMPENSATION EQUITY
1048698 External Equity Employees are paid comparably to those who perform similar jobs in other industries
1048698 Internal Equity Employees are paid according to relative value of their jobs within an organisation
1048698 Employee Equity Individuals performing similar jobs for the same firm are rewarded according to factors unique to the employee such as performance level or seniority
1048698 Team Equity More productive teams receive greater rewards than less productive groups
INTERNATIONAL COMPENSATION
Elements of Expatriate Compensation
Basic Pay Amount of money that an expatriate receives from home country Used for
Bonus calculation
Benefits
1048698 One third of compensation
1048698 Extra vacation special leaves air fares for their families for an annual visit home
emergency leaves
1048698 Housing
1048698 Utilities ndash air conditioner bottled water electricity telephone call expenses
1048698 Car ndash car expenses chauffeur hired vehicle
Helping hands servants gardeners security
1048698 Club subscription
1048698 Educational benefits
Allowances
1048698 COLA ndash cost of living between home country and foreign country inflation
1048698 Relocation allowances
1048698 Hardship allowances
1048698 Separation allowances
1048698 Clothing allowances ndash very cold climates
1048698 Home leave allowances
1048698 Spouse assistance allowances
REWARDS SYSTEM
Reward System as Followed by Organisations
1 Incentive and Rewards
2 Competency Related Pay
3 Skill Based Pay
4 Team Based Rewards
5 Profit Sharing
7 Employee Ownership
8 Statutory and Voluntary Benefits
FORMS OF RECOGNITION
Examples of Formal Recognition
1 Milestone Service Anniversary Awards (5101520 25 years of service)
2 Ideas Improvement amp Performance Awards
3 Service Awards
a) Teamworkleadership
b) Customer Service
c) Citizenship
d) Innovation
e) Attendance
4 Awards would include
a) PlaquesDesk trophies
b) Certificates
c) GiftsCertificates
d) Picture in the webpage
FORMS OF RECOGNITION
Examples of Informal Recognition
1 Team Building Retreats
2 Acknowledgement of DeptDivision goals achieved
3 Project Completion meals
4 Birthday cakes and cards
5 Picnics
6 Staff Appreciation Day
7 Holiday Parties
8 Dress-up Days
9 Corporate Merchandise
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-
40
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
5 Critical Incidents Method The approach is focused on certain critical behaviors
of employee that makes all the difference in the performance Supervisors as and
when they occur record such incidents
Advantages Evaluations are based on actual job behaviors ratings are supported
by descriptions feedback is easy reduces recency biases chances of subordinate
improvement are high
Disadvantages Negative incidents can be prioritized forgetting incidents overly
close supervision feedback may be too much and may appear to be punishment
6 Behaviorally Anchored Rating Scales Statements of effective and ineffective
behaviors determine the points They are said to be behaviorally anchored The
rater is supposed to say which behavior describes the employee performance
Advantages Helps overcome rating errors
Disadvantages Suffers from distortions inherent in most rating techniques
41
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
7 Field Review Method This is an appraisal done by someone outside employeesrsquo own department usually from corporate or HR department
Advantages Useful for managerial level promotions when comparable
information is needed
Disadvantages Outsider is generally not familiar with employees work
environment Observation of actual behaviors not possible
8 Performance Tests amp Observations This is based on the test of knowledge or skills The tests may be written or an actual presentation of skills Tests must be reliable and validated to be useful
Advantages Tests may be apt to measure potential more than actual performance
Disadvantages Tests may suffer if costs of test development or administration are high
42
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Future Oriented Methods
1 Management by Objectives It means management by objectives and the
performance is rated against the achievement of objectives stated by the
management MBO process
(a) Establish goals and desired outcomes for each subordinate
(b) Setting performance standards
(c) Comparison of actual goals with goals attained by the employee
(d) Establish new goals and new strategies for goals not achieved in previous
year
43
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Future Oriented Methods
2 Psychological Appraisals
These appraisals are more directed to assess employeersquos potential for future performance rather than the past one It is done in the form of in-depth interviews psychological tests and discussion with supervisors and review of other evaluations
It is more focused on employees emotional intellectual and motivational and other personal characteristics affecting his performance This approach is slow and costly and may be useful for bright young members who may have considerable potential However quality of these appraisals largely depend upon the skills of psychologists who perform the evaluation
44
1 Leniency amp Severity
2 Central Tendency
3 Halo Effect
4 Primacy amp Recency Effect
5 Spillover Effects
6 Status Effect
Problems of RatingRating Biases
45
PERFORMANCE COACHING
The performance coaching process involves five strategies
1 Creating a partnership role To make employees realize that both employees and manger are responsible for performance and build trust amongst them
2 Commitment Inspiring employees to be committed to the goals
3 Competency development Awareness towards developing skills and
competencies required to reach to organizational goals
4 Perseverance Developing lsquonever say diersquo attitude among organizational members
5 Shaping the environment Creating conditions for employee development
46
THE COACHING DISCUSSION
Kinlawrsquos Approach
Kinlaw suggests a three-stage approach to the coaching discussion as follows
1048698 Confronting or presenting
1048698 Using reactions to develop information
1048698 Resolving or resolution
47
THE COACHING DISCUSSION
bull Fourniesrsquo Approach
bull Step 1 Get the employeersquos agreement that a problem existsbull Step 2 Mutually discuss alternative solutions to the problembull Step 3 Mutually agree on actions to be taken to solve the problembull Step 4 Follow-up to measure resultsbull Step 5 Recognize any achievement when it occurs
48
MENTORING
bull Mentorship is a process where an experienced person provides help guidance support to nurture and develop a less experienced person referred to as a proteacutegeacute apprentice mentee or (person) It improves the self esteem of mentee and increases hisher chance for success
49
MENTORING - Kinds
1048698 New-hire mentorship
1048698 High-potential mentorship
1048698 Mentorship in Education
50
POTENTIAL APPRAISAL CAREER AND SUCCESSION
PLANNING
51
POTENTIAL APPRAISAL
Purpose of Potential Appraisal
Potential appraisal serves the following purposes
1048698 To advise employees about their overall career development and future prospects
1048698 Help the organisation to chalk out succession plans
1048698 Motivate the employees to further develop their skills and competencies
1048698 To identify the training needs
52
POTENTIAL APPRAISAL
Techniques of Potential Appraisal
1048698 Self-appraisals
1048698 Peer appraisals
1048698 Superior appraisals
1048698 MBO
1048698 Psychological and psychometric tests
1048698 Management games like role playing
1048698 Leadership exercises etc
53
CAREER PLANNING
Steps in Career Planning Process
Step One Self Assessment
Step Two Goal Setting
Step Three AcademicCareer Options
Step Four Plan of Action
Step Five Catch Hold of Opportunities
54
bull Succession Planning refers to the process of developing the second line for taking up a higher role in the organization
SUCCESSION PLANNING
55
HR MEASUREMENT AND AUDIT
bull Audit helps the organization have a clear understanding of the lacunae and better align the HR processes with Business goals
bull The audit itself is a diagnostic tool not a prescriptive instrument It helps in identifying what is missing or needs to improve It is most useful when an organization is ready to act on the findings and to evolve its HR function to play a greater strategic role
56
WHY CONDUCT AN HR AUDIT
1048698 It helps promote more professionalism and professional management
1048698 HR audit helps an organization to be aware of its present practices policies
and their adherence
1048698 Benchmarking to improve HR practices
1048698 The organization can benchmark its processes with best-in-class organizations
1048698 HR audit suggest improvement measures keeping the organizational strategic goals and vision in mind
57
THE HR AUDIT PROCESS
InterviewsQuestionnaires
The audit team interviews the following
1048698 Top Management (CEO Unit Heads)
1048698 Line Managers (eg Managers in production quality purchase and marketing)
1048698 HRD Staff
1048698 Workmen and others
Observation and Recording
Follow-up and Corrections done
58
HUMAN RESOURCE ACCOUNTING
bull The American Accounting Associationrsquos Committee on Human Resource Accounting (1973) has defined Human Resource Accounting as ldquothe process of identifying and measuring data about human resources and communicating this information to interested partiesrdquo
bull It is the measurement and reporting of the cost and value of people in organizational Resources
59
METHODS OF HUMAN RESOURCE ACCOUNTING
Methods of Valuing and Accounting of Human Resources
The methods to value and account for human resources can be classified into the following categories
1 Methods based on costs (which include costs incurred by the company to recruit hire train and develop human resources)
2 Methods based on economic value of human resources and the capitalisation of companyrsquos earnings
60
HUMAN RESOURCE ACCOUNTING
Methods based on Cost
Historical Cost Method
Under this method the cost of acquisition ie selection hiring training costs of employees are capitalised and written off over the expected useful life of the employees In case the personnel leave the company before the anticipated period of service then the unamortised portion of costs remaining in the companyrsquos books is written off against the profit and loss account in that year If the period of service exceeds the anticipated time then amortisation of costs is rescheduled
Replacement Cost Method
Under this method the human resources are valued at their replacement cost ie The monetary implications of replacing existing personnel
Standard Cost Method
Under this method standard costs of recruiting hiring training and developing per grade of employees are determined annually The total standard cost for all personnel of the company is the value of human resources
61
HUMAN RESOURCE ACCOUNTING
bull HR Accounting based on Value
bull Economic Value Method
bull Under this method the net present value of incremental cash flows attributed to human resources is taken as the asset value
62
HUMAN RESOURCE INFORMATION SYSTEMS(HRIS)
bull An information system may be automated or manual and involves collectingprocessing transmitting and disseminating data that represents user information
63
HRIS ndash APPLICATION AND UTILITIES
Personnel administration It will encompass information about each employee
such as name address personal details etc
1048698 Salary administration Generate personnel cost reports conduct lsquowhat if
analysisrsquo provide compensation history
1048698 Leave and absence recording Essentially being able to provide comprehensive
method of tracking absences late coming reports on excess leave availed leave
lapsed
1048698 Skill inventory Recording of acquired skills and monitor the skill database at the
employee and organisational level
1048698 Performance appraisal The system should record individual employee
performance appraisal data such as appraisal ratings due date of appraisal
training needs identified during the appraisal process
1048698 Recruitment Record recruitment cost lead time to fill a vacant position
recruitment methods applicant and resume management
1048698 Career planning HRIS System can provide succession plan reports identifying
employees earmarked for future position
64
HRIS ndash DISADVANTAGES
May be expensive ndash financing the technology
1048698 Thorough understanding of what constitutes quality information for the user
1048698 Computer cannot substitute human beings
HUMAN RESOURCE DEVELOPMENT SYSTEM
66
HRD
HRD play a very crucial role in organization Henery Ford once said ldquotake out my building take out my machines take out all capital but leave my men with me and I will become Henry Ford againrdquo HRD is considered as key to higher productivity better relations and greater profitability for any organization
According to Daftur
ldquoHRD is a system and process concerned with an organized series of learning activities within specified time limits designed to produce behavioral changes in the learner in such a way that it acquires desired level of competence for present or future rolerdquo
67
HRDORGANIZATION ALIGNMENT MODEL
TRAINING AND DEVELOPMENT
69
NEED FOR TRAINING AND DEVELOPMENT
bull Technological advances bull Organizational complexity bull Organizational tenure bull Human relations movement
70
THE TRAINING PROCESS
71
Needs Assessment
72
bull Lecturesbull Audio Visualsbull On-the-job Training (OJT)bull Programmed Instructionbull Computer Assisted Instruction (CAI)bull Simulation
Methods and Techniques of Training
73
Training Methods for Management Development
1048698 Seminars and Conferences
1048698 Case Study
1048698 Role Playing
1048698 Management Games
1048698 Sensitivity Training
74
bull Implementation of the Training Program
bull Evaluation of Training Program
75
Kirkpatrick Model for Evaluating Effectiveness of Training Programs
1 Reactions
2 Learning
3 Behaviors
Results or Return on Investment (ROI)
76
SPECIAL TOPICS IN TRAINING ANDDEVELOPMENT
bull Cross-cultural Training
bull Orientation Training
bull Team-training and Cross-training
bull Diversity Training
COMPENSATION AND REWARDS
78
COMPENSATION OVERVIEW
Compensation is the process of directly and indirectly rewarding employees on a current or deferred basis for their performance of assigned tasks It consists of
1048698 Direct Financial Compensation Wages salaries bonuses commissions
1048698 Indirect Financial Compensation All financial rewards not included in direct compensation (benefits)
1048698 Non-financial Compensation Satisfaction received from the job or from the psychological andor physical environment of the job
JOB EVALUATION TECHNIQUE
The general step-wise procedure for job evaluation is as under
1 Select the group of jobs
2 Study the job (job analysis)
3 Prepare job description ndash approval
4 Device an evaluation plan ndash common characteristicstraits
5 Establish a committee of raters and rateevaluate
6 Group or classify the jobs
7 Convert job grades to money value along with Wage survey
8 Obtain approval from Union and Management
9 Establish a suitable grievance procedure
COMPONENTS OF COMPENSATION SYSTEM
1 Basic WagesSalaries
2 Dearness Allowance
3 Bonus
4 Commissions
5 Mixed Plans
6 Piece Rate Wages
7 Sign on Bonuses
8 Profit Sharing Payments
9 Fringe Benefits
COMPENSATION EQUITY
1048698 External Equity Employees are paid comparably to those who perform similar jobs in other industries
1048698 Internal Equity Employees are paid according to relative value of their jobs within an organisation
1048698 Employee Equity Individuals performing similar jobs for the same firm are rewarded according to factors unique to the employee such as performance level or seniority
1048698 Team Equity More productive teams receive greater rewards than less productive groups
INTERNATIONAL COMPENSATION
Elements of Expatriate Compensation
Basic Pay Amount of money that an expatriate receives from home country Used for
Bonus calculation
Benefits
1048698 One third of compensation
1048698 Extra vacation special leaves air fares for their families for an annual visit home
emergency leaves
1048698 Housing
1048698 Utilities ndash air conditioner bottled water electricity telephone call expenses
1048698 Car ndash car expenses chauffeur hired vehicle
Helping hands servants gardeners security
1048698 Club subscription
1048698 Educational benefits
Allowances
1048698 COLA ndash cost of living between home country and foreign country inflation
1048698 Relocation allowances
1048698 Hardship allowances
1048698 Separation allowances
1048698 Clothing allowances ndash very cold climates
1048698 Home leave allowances
1048698 Spouse assistance allowances
REWARDS SYSTEM
Reward System as Followed by Organisations
1 Incentive and Rewards
2 Competency Related Pay
3 Skill Based Pay
4 Team Based Rewards
5 Profit Sharing
7 Employee Ownership
8 Statutory and Voluntary Benefits
FORMS OF RECOGNITION
Examples of Formal Recognition
1 Milestone Service Anniversary Awards (5101520 25 years of service)
2 Ideas Improvement amp Performance Awards
3 Service Awards
a) Teamworkleadership
b) Customer Service
c) Citizenship
d) Innovation
e) Attendance
4 Awards would include
a) PlaquesDesk trophies
b) Certificates
c) GiftsCertificates
d) Picture in the webpage
FORMS OF RECOGNITION
Examples of Informal Recognition
1 Team Building Retreats
2 Acknowledgement of DeptDivision goals achieved
3 Project Completion meals
4 Birthday cakes and cards
5 Picnics
6 Staff Appreciation Day
7 Holiday Parties
8 Dress-up Days
9 Corporate Merchandise
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-
41
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
7 Field Review Method This is an appraisal done by someone outside employeesrsquo own department usually from corporate or HR department
Advantages Useful for managerial level promotions when comparable
information is needed
Disadvantages Outsider is generally not familiar with employees work
environment Observation of actual behaviors not possible
8 Performance Tests amp Observations This is based on the test of knowledge or skills The tests may be written or an actual presentation of skills Tests must be reliable and validated to be useful
Advantages Tests may be apt to measure potential more than actual performance
Disadvantages Tests may suffer if costs of test development or administration are high
42
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Future Oriented Methods
1 Management by Objectives It means management by objectives and the
performance is rated against the achievement of objectives stated by the
management MBO process
(a) Establish goals and desired outcomes for each subordinate
(b) Setting performance standards
(c) Comparison of actual goals with goals attained by the employee
(d) Establish new goals and new strategies for goals not achieved in previous
year
43
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Future Oriented Methods
2 Psychological Appraisals
These appraisals are more directed to assess employeersquos potential for future performance rather than the past one It is done in the form of in-depth interviews psychological tests and discussion with supervisors and review of other evaluations
It is more focused on employees emotional intellectual and motivational and other personal characteristics affecting his performance This approach is slow and costly and may be useful for bright young members who may have considerable potential However quality of these appraisals largely depend upon the skills of psychologists who perform the evaluation
44
1 Leniency amp Severity
2 Central Tendency
3 Halo Effect
4 Primacy amp Recency Effect
5 Spillover Effects
6 Status Effect
Problems of RatingRating Biases
45
PERFORMANCE COACHING
The performance coaching process involves five strategies
1 Creating a partnership role To make employees realize that both employees and manger are responsible for performance and build trust amongst them
2 Commitment Inspiring employees to be committed to the goals
3 Competency development Awareness towards developing skills and
competencies required to reach to organizational goals
4 Perseverance Developing lsquonever say diersquo attitude among organizational members
5 Shaping the environment Creating conditions for employee development
46
THE COACHING DISCUSSION
Kinlawrsquos Approach
Kinlaw suggests a three-stage approach to the coaching discussion as follows
1048698 Confronting or presenting
1048698 Using reactions to develop information
1048698 Resolving or resolution
47
THE COACHING DISCUSSION
bull Fourniesrsquo Approach
bull Step 1 Get the employeersquos agreement that a problem existsbull Step 2 Mutually discuss alternative solutions to the problembull Step 3 Mutually agree on actions to be taken to solve the problembull Step 4 Follow-up to measure resultsbull Step 5 Recognize any achievement when it occurs
48
MENTORING
bull Mentorship is a process where an experienced person provides help guidance support to nurture and develop a less experienced person referred to as a proteacutegeacute apprentice mentee or (person) It improves the self esteem of mentee and increases hisher chance for success
49
MENTORING - Kinds
1048698 New-hire mentorship
1048698 High-potential mentorship
1048698 Mentorship in Education
50
POTENTIAL APPRAISAL CAREER AND SUCCESSION
PLANNING
51
POTENTIAL APPRAISAL
Purpose of Potential Appraisal
Potential appraisal serves the following purposes
1048698 To advise employees about their overall career development and future prospects
1048698 Help the organisation to chalk out succession plans
1048698 Motivate the employees to further develop their skills and competencies
1048698 To identify the training needs
52
POTENTIAL APPRAISAL
Techniques of Potential Appraisal
1048698 Self-appraisals
1048698 Peer appraisals
1048698 Superior appraisals
1048698 MBO
1048698 Psychological and psychometric tests
1048698 Management games like role playing
1048698 Leadership exercises etc
53
CAREER PLANNING
Steps in Career Planning Process
Step One Self Assessment
Step Two Goal Setting
Step Three AcademicCareer Options
Step Four Plan of Action
Step Five Catch Hold of Opportunities
54
bull Succession Planning refers to the process of developing the second line for taking up a higher role in the organization
SUCCESSION PLANNING
55
HR MEASUREMENT AND AUDIT
bull Audit helps the organization have a clear understanding of the lacunae and better align the HR processes with Business goals
bull The audit itself is a diagnostic tool not a prescriptive instrument It helps in identifying what is missing or needs to improve It is most useful when an organization is ready to act on the findings and to evolve its HR function to play a greater strategic role
56
WHY CONDUCT AN HR AUDIT
1048698 It helps promote more professionalism and professional management
1048698 HR audit helps an organization to be aware of its present practices policies
and their adherence
1048698 Benchmarking to improve HR practices
1048698 The organization can benchmark its processes with best-in-class organizations
1048698 HR audit suggest improvement measures keeping the organizational strategic goals and vision in mind
57
THE HR AUDIT PROCESS
InterviewsQuestionnaires
The audit team interviews the following
1048698 Top Management (CEO Unit Heads)
1048698 Line Managers (eg Managers in production quality purchase and marketing)
1048698 HRD Staff
1048698 Workmen and others
Observation and Recording
Follow-up and Corrections done
58
HUMAN RESOURCE ACCOUNTING
bull The American Accounting Associationrsquos Committee on Human Resource Accounting (1973) has defined Human Resource Accounting as ldquothe process of identifying and measuring data about human resources and communicating this information to interested partiesrdquo
bull It is the measurement and reporting of the cost and value of people in organizational Resources
59
METHODS OF HUMAN RESOURCE ACCOUNTING
Methods of Valuing and Accounting of Human Resources
The methods to value and account for human resources can be classified into the following categories
1 Methods based on costs (which include costs incurred by the company to recruit hire train and develop human resources)
2 Methods based on economic value of human resources and the capitalisation of companyrsquos earnings
60
HUMAN RESOURCE ACCOUNTING
Methods based on Cost
Historical Cost Method
Under this method the cost of acquisition ie selection hiring training costs of employees are capitalised and written off over the expected useful life of the employees In case the personnel leave the company before the anticipated period of service then the unamortised portion of costs remaining in the companyrsquos books is written off against the profit and loss account in that year If the period of service exceeds the anticipated time then amortisation of costs is rescheduled
Replacement Cost Method
Under this method the human resources are valued at their replacement cost ie The monetary implications of replacing existing personnel
Standard Cost Method
Under this method standard costs of recruiting hiring training and developing per grade of employees are determined annually The total standard cost for all personnel of the company is the value of human resources
61
HUMAN RESOURCE ACCOUNTING
bull HR Accounting based on Value
bull Economic Value Method
bull Under this method the net present value of incremental cash flows attributed to human resources is taken as the asset value
62
HUMAN RESOURCE INFORMATION SYSTEMS(HRIS)
bull An information system may be automated or manual and involves collectingprocessing transmitting and disseminating data that represents user information
63
HRIS ndash APPLICATION AND UTILITIES
Personnel administration It will encompass information about each employee
such as name address personal details etc
1048698 Salary administration Generate personnel cost reports conduct lsquowhat if
analysisrsquo provide compensation history
1048698 Leave and absence recording Essentially being able to provide comprehensive
method of tracking absences late coming reports on excess leave availed leave
lapsed
1048698 Skill inventory Recording of acquired skills and monitor the skill database at the
employee and organisational level
1048698 Performance appraisal The system should record individual employee
performance appraisal data such as appraisal ratings due date of appraisal
training needs identified during the appraisal process
1048698 Recruitment Record recruitment cost lead time to fill a vacant position
recruitment methods applicant and resume management
1048698 Career planning HRIS System can provide succession plan reports identifying
employees earmarked for future position
64
HRIS ndash DISADVANTAGES
May be expensive ndash financing the technology
1048698 Thorough understanding of what constitutes quality information for the user
1048698 Computer cannot substitute human beings
HUMAN RESOURCE DEVELOPMENT SYSTEM
66
HRD
HRD play a very crucial role in organization Henery Ford once said ldquotake out my building take out my machines take out all capital but leave my men with me and I will become Henry Ford againrdquo HRD is considered as key to higher productivity better relations and greater profitability for any organization
According to Daftur
ldquoHRD is a system and process concerned with an organized series of learning activities within specified time limits designed to produce behavioral changes in the learner in such a way that it acquires desired level of competence for present or future rolerdquo
67
HRDORGANIZATION ALIGNMENT MODEL
TRAINING AND DEVELOPMENT
69
NEED FOR TRAINING AND DEVELOPMENT
bull Technological advances bull Organizational complexity bull Organizational tenure bull Human relations movement
70
THE TRAINING PROCESS
71
Needs Assessment
72
bull Lecturesbull Audio Visualsbull On-the-job Training (OJT)bull Programmed Instructionbull Computer Assisted Instruction (CAI)bull Simulation
Methods and Techniques of Training
73
Training Methods for Management Development
1048698 Seminars and Conferences
1048698 Case Study
1048698 Role Playing
1048698 Management Games
1048698 Sensitivity Training
74
bull Implementation of the Training Program
bull Evaluation of Training Program
75
Kirkpatrick Model for Evaluating Effectiveness of Training Programs
1 Reactions
2 Learning
3 Behaviors
Results or Return on Investment (ROI)
76
SPECIAL TOPICS IN TRAINING ANDDEVELOPMENT
bull Cross-cultural Training
bull Orientation Training
bull Team-training and Cross-training
bull Diversity Training
COMPENSATION AND REWARDS
78
COMPENSATION OVERVIEW
Compensation is the process of directly and indirectly rewarding employees on a current or deferred basis for their performance of assigned tasks It consists of
1048698 Direct Financial Compensation Wages salaries bonuses commissions
1048698 Indirect Financial Compensation All financial rewards not included in direct compensation (benefits)
1048698 Non-financial Compensation Satisfaction received from the job or from the psychological andor physical environment of the job
JOB EVALUATION TECHNIQUE
The general step-wise procedure for job evaluation is as under
1 Select the group of jobs
2 Study the job (job analysis)
3 Prepare job description ndash approval
4 Device an evaluation plan ndash common characteristicstraits
5 Establish a committee of raters and rateevaluate
6 Group or classify the jobs
7 Convert job grades to money value along with Wage survey
8 Obtain approval from Union and Management
9 Establish a suitable grievance procedure
COMPONENTS OF COMPENSATION SYSTEM
1 Basic WagesSalaries
2 Dearness Allowance
3 Bonus
4 Commissions
5 Mixed Plans
6 Piece Rate Wages
7 Sign on Bonuses
8 Profit Sharing Payments
9 Fringe Benefits
COMPENSATION EQUITY
1048698 External Equity Employees are paid comparably to those who perform similar jobs in other industries
1048698 Internal Equity Employees are paid according to relative value of their jobs within an organisation
1048698 Employee Equity Individuals performing similar jobs for the same firm are rewarded according to factors unique to the employee such as performance level or seniority
1048698 Team Equity More productive teams receive greater rewards than less productive groups
INTERNATIONAL COMPENSATION
Elements of Expatriate Compensation
Basic Pay Amount of money that an expatriate receives from home country Used for
Bonus calculation
Benefits
1048698 One third of compensation
1048698 Extra vacation special leaves air fares for their families for an annual visit home
emergency leaves
1048698 Housing
1048698 Utilities ndash air conditioner bottled water electricity telephone call expenses
1048698 Car ndash car expenses chauffeur hired vehicle
Helping hands servants gardeners security
1048698 Club subscription
1048698 Educational benefits
Allowances
1048698 COLA ndash cost of living between home country and foreign country inflation
1048698 Relocation allowances
1048698 Hardship allowances
1048698 Separation allowances
1048698 Clothing allowances ndash very cold climates
1048698 Home leave allowances
1048698 Spouse assistance allowances
REWARDS SYSTEM
Reward System as Followed by Organisations
1 Incentive and Rewards
2 Competency Related Pay
3 Skill Based Pay
4 Team Based Rewards
5 Profit Sharing
7 Employee Ownership
8 Statutory and Voluntary Benefits
FORMS OF RECOGNITION
Examples of Formal Recognition
1 Milestone Service Anniversary Awards (5101520 25 years of service)
2 Ideas Improvement amp Performance Awards
3 Service Awards
a) Teamworkleadership
b) Customer Service
c) Citizenship
d) Innovation
e) Attendance
4 Awards would include
a) PlaquesDesk trophies
b) Certificates
c) GiftsCertificates
d) Picture in the webpage
FORMS OF RECOGNITION
Examples of Informal Recognition
1 Team Building Retreats
2 Acknowledgement of DeptDivision goals achieved
3 Project Completion meals
4 Birthday cakes and cards
5 Picnics
6 Staff Appreciation Day
7 Holiday Parties
8 Dress-up Days
9 Corporate Merchandise
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-
42
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Future Oriented Methods
1 Management by Objectives It means management by objectives and the
performance is rated against the achievement of objectives stated by the
management MBO process
(a) Establish goals and desired outcomes for each subordinate
(b) Setting performance standards
(c) Comparison of actual goals with goals attained by the employee
(d) Establish new goals and new strategies for goals not achieved in previous
year
43
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Future Oriented Methods
2 Psychological Appraisals
These appraisals are more directed to assess employeersquos potential for future performance rather than the past one It is done in the form of in-depth interviews psychological tests and discussion with supervisors and review of other evaluations
It is more focused on employees emotional intellectual and motivational and other personal characteristics affecting his performance This approach is slow and costly and may be useful for bright young members who may have considerable potential However quality of these appraisals largely depend upon the skills of psychologists who perform the evaluation
44
1 Leniency amp Severity
2 Central Tendency
3 Halo Effect
4 Primacy amp Recency Effect
5 Spillover Effects
6 Status Effect
Problems of RatingRating Biases
45
PERFORMANCE COACHING
The performance coaching process involves five strategies
1 Creating a partnership role To make employees realize that both employees and manger are responsible for performance and build trust amongst them
2 Commitment Inspiring employees to be committed to the goals
3 Competency development Awareness towards developing skills and
competencies required to reach to organizational goals
4 Perseverance Developing lsquonever say diersquo attitude among organizational members
5 Shaping the environment Creating conditions for employee development
46
THE COACHING DISCUSSION
Kinlawrsquos Approach
Kinlaw suggests a three-stage approach to the coaching discussion as follows
1048698 Confronting or presenting
1048698 Using reactions to develop information
1048698 Resolving or resolution
47
THE COACHING DISCUSSION
bull Fourniesrsquo Approach
bull Step 1 Get the employeersquos agreement that a problem existsbull Step 2 Mutually discuss alternative solutions to the problembull Step 3 Mutually agree on actions to be taken to solve the problembull Step 4 Follow-up to measure resultsbull Step 5 Recognize any achievement when it occurs
48
MENTORING
bull Mentorship is a process where an experienced person provides help guidance support to nurture and develop a less experienced person referred to as a proteacutegeacute apprentice mentee or (person) It improves the self esteem of mentee and increases hisher chance for success
49
MENTORING - Kinds
1048698 New-hire mentorship
1048698 High-potential mentorship
1048698 Mentorship in Education
50
POTENTIAL APPRAISAL CAREER AND SUCCESSION
PLANNING
51
POTENTIAL APPRAISAL
Purpose of Potential Appraisal
Potential appraisal serves the following purposes
1048698 To advise employees about their overall career development and future prospects
1048698 Help the organisation to chalk out succession plans
1048698 Motivate the employees to further develop their skills and competencies
1048698 To identify the training needs
52
POTENTIAL APPRAISAL
Techniques of Potential Appraisal
1048698 Self-appraisals
1048698 Peer appraisals
1048698 Superior appraisals
1048698 MBO
1048698 Psychological and psychometric tests
1048698 Management games like role playing
1048698 Leadership exercises etc
53
CAREER PLANNING
Steps in Career Planning Process
Step One Self Assessment
Step Two Goal Setting
Step Three AcademicCareer Options
Step Four Plan of Action
Step Five Catch Hold of Opportunities
54
bull Succession Planning refers to the process of developing the second line for taking up a higher role in the organization
SUCCESSION PLANNING
55
HR MEASUREMENT AND AUDIT
bull Audit helps the organization have a clear understanding of the lacunae and better align the HR processes with Business goals
bull The audit itself is a diagnostic tool not a prescriptive instrument It helps in identifying what is missing or needs to improve It is most useful when an organization is ready to act on the findings and to evolve its HR function to play a greater strategic role
56
WHY CONDUCT AN HR AUDIT
1048698 It helps promote more professionalism and professional management
1048698 HR audit helps an organization to be aware of its present practices policies
and their adherence
1048698 Benchmarking to improve HR practices
1048698 The organization can benchmark its processes with best-in-class organizations
1048698 HR audit suggest improvement measures keeping the organizational strategic goals and vision in mind
57
THE HR AUDIT PROCESS
InterviewsQuestionnaires
The audit team interviews the following
1048698 Top Management (CEO Unit Heads)
1048698 Line Managers (eg Managers in production quality purchase and marketing)
1048698 HRD Staff
1048698 Workmen and others
Observation and Recording
Follow-up and Corrections done
58
HUMAN RESOURCE ACCOUNTING
bull The American Accounting Associationrsquos Committee on Human Resource Accounting (1973) has defined Human Resource Accounting as ldquothe process of identifying and measuring data about human resources and communicating this information to interested partiesrdquo
bull It is the measurement and reporting of the cost and value of people in organizational Resources
59
METHODS OF HUMAN RESOURCE ACCOUNTING
Methods of Valuing and Accounting of Human Resources
The methods to value and account for human resources can be classified into the following categories
1 Methods based on costs (which include costs incurred by the company to recruit hire train and develop human resources)
2 Methods based on economic value of human resources and the capitalisation of companyrsquos earnings
60
HUMAN RESOURCE ACCOUNTING
Methods based on Cost
Historical Cost Method
Under this method the cost of acquisition ie selection hiring training costs of employees are capitalised and written off over the expected useful life of the employees In case the personnel leave the company before the anticipated period of service then the unamortised portion of costs remaining in the companyrsquos books is written off against the profit and loss account in that year If the period of service exceeds the anticipated time then amortisation of costs is rescheduled
Replacement Cost Method
Under this method the human resources are valued at their replacement cost ie The monetary implications of replacing existing personnel
Standard Cost Method
Under this method standard costs of recruiting hiring training and developing per grade of employees are determined annually The total standard cost for all personnel of the company is the value of human resources
61
HUMAN RESOURCE ACCOUNTING
bull HR Accounting based on Value
bull Economic Value Method
bull Under this method the net present value of incremental cash flows attributed to human resources is taken as the asset value
62
HUMAN RESOURCE INFORMATION SYSTEMS(HRIS)
bull An information system may be automated or manual and involves collectingprocessing transmitting and disseminating data that represents user information
63
HRIS ndash APPLICATION AND UTILITIES
Personnel administration It will encompass information about each employee
such as name address personal details etc
1048698 Salary administration Generate personnel cost reports conduct lsquowhat if
analysisrsquo provide compensation history
1048698 Leave and absence recording Essentially being able to provide comprehensive
method of tracking absences late coming reports on excess leave availed leave
lapsed
1048698 Skill inventory Recording of acquired skills and monitor the skill database at the
employee and organisational level
1048698 Performance appraisal The system should record individual employee
performance appraisal data such as appraisal ratings due date of appraisal
training needs identified during the appraisal process
1048698 Recruitment Record recruitment cost lead time to fill a vacant position
recruitment methods applicant and resume management
1048698 Career planning HRIS System can provide succession plan reports identifying
employees earmarked for future position
64
HRIS ndash DISADVANTAGES
May be expensive ndash financing the technology
1048698 Thorough understanding of what constitutes quality information for the user
1048698 Computer cannot substitute human beings
HUMAN RESOURCE DEVELOPMENT SYSTEM
66
HRD
HRD play a very crucial role in organization Henery Ford once said ldquotake out my building take out my machines take out all capital but leave my men with me and I will become Henry Ford againrdquo HRD is considered as key to higher productivity better relations and greater profitability for any organization
According to Daftur
ldquoHRD is a system and process concerned with an organized series of learning activities within specified time limits designed to produce behavioral changes in the learner in such a way that it acquires desired level of competence for present or future rolerdquo
67
HRDORGANIZATION ALIGNMENT MODEL
TRAINING AND DEVELOPMENT
69
NEED FOR TRAINING AND DEVELOPMENT
bull Technological advances bull Organizational complexity bull Organizational tenure bull Human relations movement
70
THE TRAINING PROCESS
71
Needs Assessment
72
bull Lecturesbull Audio Visualsbull On-the-job Training (OJT)bull Programmed Instructionbull Computer Assisted Instruction (CAI)bull Simulation
Methods and Techniques of Training
73
Training Methods for Management Development
1048698 Seminars and Conferences
1048698 Case Study
1048698 Role Playing
1048698 Management Games
1048698 Sensitivity Training
74
bull Implementation of the Training Program
bull Evaluation of Training Program
75
Kirkpatrick Model for Evaluating Effectiveness of Training Programs
1 Reactions
2 Learning
3 Behaviors
Results or Return on Investment (ROI)
76
SPECIAL TOPICS IN TRAINING ANDDEVELOPMENT
bull Cross-cultural Training
bull Orientation Training
bull Team-training and Cross-training
bull Diversity Training
COMPENSATION AND REWARDS
78
COMPENSATION OVERVIEW
Compensation is the process of directly and indirectly rewarding employees on a current or deferred basis for their performance of assigned tasks It consists of
1048698 Direct Financial Compensation Wages salaries bonuses commissions
1048698 Indirect Financial Compensation All financial rewards not included in direct compensation (benefits)
1048698 Non-financial Compensation Satisfaction received from the job or from the psychological andor physical environment of the job
JOB EVALUATION TECHNIQUE
The general step-wise procedure for job evaluation is as under
1 Select the group of jobs
2 Study the job (job analysis)
3 Prepare job description ndash approval
4 Device an evaluation plan ndash common characteristicstraits
5 Establish a committee of raters and rateevaluate
6 Group or classify the jobs
7 Convert job grades to money value along with Wage survey
8 Obtain approval from Union and Management
9 Establish a suitable grievance procedure
COMPONENTS OF COMPENSATION SYSTEM
1 Basic WagesSalaries
2 Dearness Allowance
3 Bonus
4 Commissions
5 Mixed Plans
6 Piece Rate Wages
7 Sign on Bonuses
8 Profit Sharing Payments
9 Fringe Benefits
COMPENSATION EQUITY
1048698 External Equity Employees are paid comparably to those who perform similar jobs in other industries
1048698 Internal Equity Employees are paid according to relative value of their jobs within an organisation
1048698 Employee Equity Individuals performing similar jobs for the same firm are rewarded according to factors unique to the employee such as performance level or seniority
1048698 Team Equity More productive teams receive greater rewards than less productive groups
INTERNATIONAL COMPENSATION
Elements of Expatriate Compensation
Basic Pay Amount of money that an expatriate receives from home country Used for
Bonus calculation
Benefits
1048698 One third of compensation
1048698 Extra vacation special leaves air fares for their families for an annual visit home
emergency leaves
1048698 Housing
1048698 Utilities ndash air conditioner bottled water electricity telephone call expenses
1048698 Car ndash car expenses chauffeur hired vehicle
Helping hands servants gardeners security
1048698 Club subscription
1048698 Educational benefits
Allowances
1048698 COLA ndash cost of living between home country and foreign country inflation
1048698 Relocation allowances
1048698 Hardship allowances
1048698 Separation allowances
1048698 Clothing allowances ndash very cold climates
1048698 Home leave allowances
1048698 Spouse assistance allowances
REWARDS SYSTEM
Reward System as Followed by Organisations
1 Incentive and Rewards
2 Competency Related Pay
3 Skill Based Pay
4 Team Based Rewards
5 Profit Sharing
7 Employee Ownership
8 Statutory and Voluntary Benefits
FORMS OF RECOGNITION
Examples of Formal Recognition
1 Milestone Service Anniversary Awards (5101520 25 years of service)
2 Ideas Improvement amp Performance Awards
3 Service Awards
a) Teamworkleadership
b) Customer Service
c) Citizenship
d) Innovation
e) Attendance
4 Awards would include
a) PlaquesDesk trophies
b) Certificates
c) GiftsCertificates
d) Picture in the webpage
FORMS OF RECOGNITION
Examples of Informal Recognition
1 Team Building Retreats
2 Acknowledgement of DeptDivision goals achieved
3 Project Completion meals
4 Birthday cakes and cards
5 Picnics
6 Staff Appreciation Day
7 Holiday Parties
8 Dress-up Days
9 Corporate Merchandise
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-
43
TECHNIQUESMETHODS OF PERFORMANCEAPPRAISALS
Future Oriented Methods
2 Psychological Appraisals
These appraisals are more directed to assess employeersquos potential for future performance rather than the past one It is done in the form of in-depth interviews psychological tests and discussion with supervisors and review of other evaluations
It is more focused on employees emotional intellectual and motivational and other personal characteristics affecting his performance This approach is slow and costly and may be useful for bright young members who may have considerable potential However quality of these appraisals largely depend upon the skills of psychologists who perform the evaluation
44
1 Leniency amp Severity
2 Central Tendency
3 Halo Effect
4 Primacy amp Recency Effect
5 Spillover Effects
6 Status Effect
Problems of RatingRating Biases
45
PERFORMANCE COACHING
The performance coaching process involves five strategies
1 Creating a partnership role To make employees realize that both employees and manger are responsible for performance and build trust amongst them
2 Commitment Inspiring employees to be committed to the goals
3 Competency development Awareness towards developing skills and
competencies required to reach to organizational goals
4 Perseverance Developing lsquonever say diersquo attitude among organizational members
5 Shaping the environment Creating conditions for employee development
46
THE COACHING DISCUSSION
Kinlawrsquos Approach
Kinlaw suggests a three-stage approach to the coaching discussion as follows
1048698 Confronting or presenting
1048698 Using reactions to develop information
1048698 Resolving or resolution
47
THE COACHING DISCUSSION
bull Fourniesrsquo Approach
bull Step 1 Get the employeersquos agreement that a problem existsbull Step 2 Mutually discuss alternative solutions to the problembull Step 3 Mutually agree on actions to be taken to solve the problembull Step 4 Follow-up to measure resultsbull Step 5 Recognize any achievement when it occurs
48
MENTORING
bull Mentorship is a process where an experienced person provides help guidance support to nurture and develop a less experienced person referred to as a proteacutegeacute apprentice mentee or (person) It improves the self esteem of mentee and increases hisher chance for success
49
MENTORING - Kinds
1048698 New-hire mentorship
1048698 High-potential mentorship
1048698 Mentorship in Education
50
POTENTIAL APPRAISAL CAREER AND SUCCESSION
PLANNING
51
POTENTIAL APPRAISAL
Purpose of Potential Appraisal
Potential appraisal serves the following purposes
1048698 To advise employees about their overall career development and future prospects
1048698 Help the organisation to chalk out succession plans
1048698 Motivate the employees to further develop their skills and competencies
1048698 To identify the training needs
52
POTENTIAL APPRAISAL
Techniques of Potential Appraisal
1048698 Self-appraisals
1048698 Peer appraisals
1048698 Superior appraisals
1048698 MBO
1048698 Psychological and psychometric tests
1048698 Management games like role playing
1048698 Leadership exercises etc
53
CAREER PLANNING
Steps in Career Planning Process
Step One Self Assessment
Step Two Goal Setting
Step Three AcademicCareer Options
Step Four Plan of Action
Step Five Catch Hold of Opportunities
54
bull Succession Planning refers to the process of developing the second line for taking up a higher role in the organization
SUCCESSION PLANNING
55
HR MEASUREMENT AND AUDIT
bull Audit helps the organization have a clear understanding of the lacunae and better align the HR processes with Business goals
bull The audit itself is a diagnostic tool not a prescriptive instrument It helps in identifying what is missing or needs to improve It is most useful when an organization is ready to act on the findings and to evolve its HR function to play a greater strategic role
56
WHY CONDUCT AN HR AUDIT
1048698 It helps promote more professionalism and professional management
1048698 HR audit helps an organization to be aware of its present practices policies
and their adherence
1048698 Benchmarking to improve HR practices
1048698 The organization can benchmark its processes with best-in-class organizations
1048698 HR audit suggest improvement measures keeping the organizational strategic goals and vision in mind
57
THE HR AUDIT PROCESS
InterviewsQuestionnaires
The audit team interviews the following
1048698 Top Management (CEO Unit Heads)
1048698 Line Managers (eg Managers in production quality purchase and marketing)
1048698 HRD Staff
1048698 Workmen and others
Observation and Recording
Follow-up and Corrections done
58
HUMAN RESOURCE ACCOUNTING
bull The American Accounting Associationrsquos Committee on Human Resource Accounting (1973) has defined Human Resource Accounting as ldquothe process of identifying and measuring data about human resources and communicating this information to interested partiesrdquo
bull It is the measurement and reporting of the cost and value of people in organizational Resources
59
METHODS OF HUMAN RESOURCE ACCOUNTING
Methods of Valuing and Accounting of Human Resources
The methods to value and account for human resources can be classified into the following categories
1 Methods based on costs (which include costs incurred by the company to recruit hire train and develop human resources)
2 Methods based on economic value of human resources and the capitalisation of companyrsquos earnings
60
HUMAN RESOURCE ACCOUNTING
Methods based on Cost
Historical Cost Method
Under this method the cost of acquisition ie selection hiring training costs of employees are capitalised and written off over the expected useful life of the employees In case the personnel leave the company before the anticipated period of service then the unamortised portion of costs remaining in the companyrsquos books is written off against the profit and loss account in that year If the period of service exceeds the anticipated time then amortisation of costs is rescheduled
Replacement Cost Method
Under this method the human resources are valued at their replacement cost ie The monetary implications of replacing existing personnel
Standard Cost Method
Under this method standard costs of recruiting hiring training and developing per grade of employees are determined annually The total standard cost for all personnel of the company is the value of human resources
61
HUMAN RESOURCE ACCOUNTING
bull HR Accounting based on Value
bull Economic Value Method
bull Under this method the net present value of incremental cash flows attributed to human resources is taken as the asset value
62
HUMAN RESOURCE INFORMATION SYSTEMS(HRIS)
bull An information system may be automated or manual and involves collectingprocessing transmitting and disseminating data that represents user information
63
HRIS ndash APPLICATION AND UTILITIES
Personnel administration It will encompass information about each employee
such as name address personal details etc
1048698 Salary administration Generate personnel cost reports conduct lsquowhat if
analysisrsquo provide compensation history
1048698 Leave and absence recording Essentially being able to provide comprehensive
method of tracking absences late coming reports on excess leave availed leave
lapsed
1048698 Skill inventory Recording of acquired skills and monitor the skill database at the
employee and organisational level
1048698 Performance appraisal The system should record individual employee
performance appraisal data such as appraisal ratings due date of appraisal
training needs identified during the appraisal process
1048698 Recruitment Record recruitment cost lead time to fill a vacant position
recruitment methods applicant and resume management
1048698 Career planning HRIS System can provide succession plan reports identifying
employees earmarked for future position
64
HRIS ndash DISADVANTAGES
May be expensive ndash financing the technology
1048698 Thorough understanding of what constitutes quality information for the user
1048698 Computer cannot substitute human beings
HUMAN RESOURCE DEVELOPMENT SYSTEM
66
HRD
HRD play a very crucial role in organization Henery Ford once said ldquotake out my building take out my machines take out all capital but leave my men with me and I will become Henry Ford againrdquo HRD is considered as key to higher productivity better relations and greater profitability for any organization
According to Daftur
ldquoHRD is a system and process concerned with an organized series of learning activities within specified time limits designed to produce behavioral changes in the learner in such a way that it acquires desired level of competence for present or future rolerdquo
67
HRDORGANIZATION ALIGNMENT MODEL
TRAINING AND DEVELOPMENT
69
NEED FOR TRAINING AND DEVELOPMENT
bull Technological advances bull Organizational complexity bull Organizational tenure bull Human relations movement
70
THE TRAINING PROCESS
71
Needs Assessment
72
bull Lecturesbull Audio Visualsbull On-the-job Training (OJT)bull Programmed Instructionbull Computer Assisted Instruction (CAI)bull Simulation
Methods and Techniques of Training
73
Training Methods for Management Development
1048698 Seminars and Conferences
1048698 Case Study
1048698 Role Playing
1048698 Management Games
1048698 Sensitivity Training
74
bull Implementation of the Training Program
bull Evaluation of Training Program
75
Kirkpatrick Model for Evaluating Effectiveness of Training Programs
1 Reactions
2 Learning
3 Behaviors
Results or Return on Investment (ROI)
76
SPECIAL TOPICS IN TRAINING ANDDEVELOPMENT
bull Cross-cultural Training
bull Orientation Training
bull Team-training and Cross-training
bull Diversity Training
COMPENSATION AND REWARDS
78
COMPENSATION OVERVIEW
Compensation is the process of directly and indirectly rewarding employees on a current or deferred basis for their performance of assigned tasks It consists of
1048698 Direct Financial Compensation Wages salaries bonuses commissions
1048698 Indirect Financial Compensation All financial rewards not included in direct compensation (benefits)
1048698 Non-financial Compensation Satisfaction received from the job or from the psychological andor physical environment of the job
JOB EVALUATION TECHNIQUE
The general step-wise procedure for job evaluation is as under
1 Select the group of jobs
2 Study the job (job analysis)
3 Prepare job description ndash approval
4 Device an evaluation plan ndash common characteristicstraits
5 Establish a committee of raters and rateevaluate
6 Group or classify the jobs
7 Convert job grades to money value along with Wage survey
8 Obtain approval from Union and Management
9 Establish a suitable grievance procedure
COMPONENTS OF COMPENSATION SYSTEM
1 Basic WagesSalaries
2 Dearness Allowance
3 Bonus
4 Commissions
5 Mixed Plans
6 Piece Rate Wages
7 Sign on Bonuses
8 Profit Sharing Payments
9 Fringe Benefits
COMPENSATION EQUITY
1048698 External Equity Employees are paid comparably to those who perform similar jobs in other industries
1048698 Internal Equity Employees are paid according to relative value of their jobs within an organisation
1048698 Employee Equity Individuals performing similar jobs for the same firm are rewarded according to factors unique to the employee such as performance level or seniority
1048698 Team Equity More productive teams receive greater rewards than less productive groups
INTERNATIONAL COMPENSATION
Elements of Expatriate Compensation
Basic Pay Amount of money that an expatriate receives from home country Used for
Bonus calculation
Benefits
1048698 One third of compensation
1048698 Extra vacation special leaves air fares for their families for an annual visit home
emergency leaves
1048698 Housing
1048698 Utilities ndash air conditioner bottled water electricity telephone call expenses
1048698 Car ndash car expenses chauffeur hired vehicle
Helping hands servants gardeners security
1048698 Club subscription
1048698 Educational benefits
Allowances
1048698 COLA ndash cost of living between home country and foreign country inflation
1048698 Relocation allowances
1048698 Hardship allowances
1048698 Separation allowances
1048698 Clothing allowances ndash very cold climates
1048698 Home leave allowances
1048698 Spouse assistance allowances
REWARDS SYSTEM
Reward System as Followed by Organisations
1 Incentive and Rewards
2 Competency Related Pay
3 Skill Based Pay
4 Team Based Rewards
5 Profit Sharing
7 Employee Ownership
8 Statutory and Voluntary Benefits
FORMS OF RECOGNITION
Examples of Formal Recognition
1 Milestone Service Anniversary Awards (5101520 25 years of service)
2 Ideas Improvement amp Performance Awards
3 Service Awards
a) Teamworkleadership
b) Customer Service
c) Citizenship
d) Innovation
e) Attendance
4 Awards would include
a) PlaquesDesk trophies
b) Certificates
c) GiftsCertificates
d) Picture in the webpage
FORMS OF RECOGNITION
Examples of Informal Recognition
1 Team Building Retreats
2 Acknowledgement of DeptDivision goals achieved
3 Project Completion meals
4 Birthday cakes and cards
5 Picnics
6 Staff Appreciation Day
7 Holiday Parties
8 Dress-up Days
9 Corporate Merchandise
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-
44
1 Leniency amp Severity
2 Central Tendency
3 Halo Effect
4 Primacy amp Recency Effect
5 Spillover Effects
6 Status Effect
Problems of RatingRating Biases
45
PERFORMANCE COACHING
The performance coaching process involves five strategies
1 Creating a partnership role To make employees realize that both employees and manger are responsible for performance and build trust amongst them
2 Commitment Inspiring employees to be committed to the goals
3 Competency development Awareness towards developing skills and
competencies required to reach to organizational goals
4 Perseverance Developing lsquonever say diersquo attitude among organizational members
5 Shaping the environment Creating conditions for employee development
46
THE COACHING DISCUSSION
Kinlawrsquos Approach
Kinlaw suggests a three-stage approach to the coaching discussion as follows
1048698 Confronting or presenting
1048698 Using reactions to develop information
1048698 Resolving or resolution
47
THE COACHING DISCUSSION
bull Fourniesrsquo Approach
bull Step 1 Get the employeersquos agreement that a problem existsbull Step 2 Mutually discuss alternative solutions to the problembull Step 3 Mutually agree on actions to be taken to solve the problembull Step 4 Follow-up to measure resultsbull Step 5 Recognize any achievement when it occurs
48
MENTORING
bull Mentorship is a process where an experienced person provides help guidance support to nurture and develop a less experienced person referred to as a proteacutegeacute apprentice mentee or (person) It improves the self esteem of mentee and increases hisher chance for success
49
MENTORING - Kinds
1048698 New-hire mentorship
1048698 High-potential mentorship
1048698 Mentorship in Education
50
POTENTIAL APPRAISAL CAREER AND SUCCESSION
PLANNING
51
POTENTIAL APPRAISAL
Purpose of Potential Appraisal
Potential appraisal serves the following purposes
1048698 To advise employees about their overall career development and future prospects
1048698 Help the organisation to chalk out succession plans
1048698 Motivate the employees to further develop their skills and competencies
1048698 To identify the training needs
52
POTENTIAL APPRAISAL
Techniques of Potential Appraisal
1048698 Self-appraisals
1048698 Peer appraisals
1048698 Superior appraisals
1048698 MBO
1048698 Psychological and psychometric tests
1048698 Management games like role playing
1048698 Leadership exercises etc
53
CAREER PLANNING
Steps in Career Planning Process
Step One Self Assessment
Step Two Goal Setting
Step Three AcademicCareer Options
Step Four Plan of Action
Step Five Catch Hold of Opportunities
54
bull Succession Planning refers to the process of developing the second line for taking up a higher role in the organization
SUCCESSION PLANNING
55
HR MEASUREMENT AND AUDIT
bull Audit helps the organization have a clear understanding of the lacunae and better align the HR processes with Business goals
bull The audit itself is a diagnostic tool not a prescriptive instrument It helps in identifying what is missing or needs to improve It is most useful when an organization is ready to act on the findings and to evolve its HR function to play a greater strategic role
56
WHY CONDUCT AN HR AUDIT
1048698 It helps promote more professionalism and professional management
1048698 HR audit helps an organization to be aware of its present practices policies
and their adherence
1048698 Benchmarking to improve HR practices
1048698 The organization can benchmark its processes with best-in-class organizations
1048698 HR audit suggest improvement measures keeping the organizational strategic goals and vision in mind
57
THE HR AUDIT PROCESS
InterviewsQuestionnaires
The audit team interviews the following
1048698 Top Management (CEO Unit Heads)
1048698 Line Managers (eg Managers in production quality purchase and marketing)
1048698 HRD Staff
1048698 Workmen and others
Observation and Recording
Follow-up and Corrections done
58
HUMAN RESOURCE ACCOUNTING
bull The American Accounting Associationrsquos Committee on Human Resource Accounting (1973) has defined Human Resource Accounting as ldquothe process of identifying and measuring data about human resources and communicating this information to interested partiesrdquo
bull It is the measurement and reporting of the cost and value of people in organizational Resources
59
METHODS OF HUMAN RESOURCE ACCOUNTING
Methods of Valuing and Accounting of Human Resources
The methods to value and account for human resources can be classified into the following categories
1 Methods based on costs (which include costs incurred by the company to recruit hire train and develop human resources)
2 Methods based on economic value of human resources and the capitalisation of companyrsquos earnings
60
HUMAN RESOURCE ACCOUNTING
Methods based on Cost
Historical Cost Method
Under this method the cost of acquisition ie selection hiring training costs of employees are capitalised and written off over the expected useful life of the employees In case the personnel leave the company before the anticipated period of service then the unamortised portion of costs remaining in the companyrsquos books is written off against the profit and loss account in that year If the period of service exceeds the anticipated time then amortisation of costs is rescheduled
Replacement Cost Method
Under this method the human resources are valued at their replacement cost ie The monetary implications of replacing existing personnel
Standard Cost Method
Under this method standard costs of recruiting hiring training and developing per grade of employees are determined annually The total standard cost for all personnel of the company is the value of human resources
61
HUMAN RESOURCE ACCOUNTING
bull HR Accounting based on Value
bull Economic Value Method
bull Under this method the net present value of incremental cash flows attributed to human resources is taken as the asset value
62
HUMAN RESOURCE INFORMATION SYSTEMS(HRIS)
bull An information system may be automated or manual and involves collectingprocessing transmitting and disseminating data that represents user information
63
HRIS ndash APPLICATION AND UTILITIES
Personnel administration It will encompass information about each employee
such as name address personal details etc
1048698 Salary administration Generate personnel cost reports conduct lsquowhat if
analysisrsquo provide compensation history
1048698 Leave and absence recording Essentially being able to provide comprehensive
method of tracking absences late coming reports on excess leave availed leave
lapsed
1048698 Skill inventory Recording of acquired skills and monitor the skill database at the
employee and organisational level
1048698 Performance appraisal The system should record individual employee
performance appraisal data such as appraisal ratings due date of appraisal
training needs identified during the appraisal process
1048698 Recruitment Record recruitment cost lead time to fill a vacant position
recruitment methods applicant and resume management
1048698 Career planning HRIS System can provide succession plan reports identifying
employees earmarked for future position
64
HRIS ndash DISADVANTAGES
May be expensive ndash financing the technology
1048698 Thorough understanding of what constitutes quality information for the user
1048698 Computer cannot substitute human beings
HUMAN RESOURCE DEVELOPMENT SYSTEM
66
HRD
HRD play a very crucial role in organization Henery Ford once said ldquotake out my building take out my machines take out all capital but leave my men with me and I will become Henry Ford againrdquo HRD is considered as key to higher productivity better relations and greater profitability for any organization
According to Daftur
ldquoHRD is a system and process concerned with an organized series of learning activities within specified time limits designed to produce behavioral changes in the learner in such a way that it acquires desired level of competence for present or future rolerdquo
67
HRDORGANIZATION ALIGNMENT MODEL
TRAINING AND DEVELOPMENT
69
NEED FOR TRAINING AND DEVELOPMENT
bull Technological advances bull Organizational complexity bull Organizational tenure bull Human relations movement
70
THE TRAINING PROCESS
71
Needs Assessment
72
bull Lecturesbull Audio Visualsbull On-the-job Training (OJT)bull Programmed Instructionbull Computer Assisted Instruction (CAI)bull Simulation
Methods and Techniques of Training
73
Training Methods for Management Development
1048698 Seminars and Conferences
1048698 Case Study
1048698 Role Playing
1048698 Management Games
1048698 Sensitivity Training
74
bull Implementation of the Training Program
bull Evaluation of Training Program
75
Kirkpatrick Model for Evaluating Effectiveness of Training Programs
1 Reactions
2 Learning
3 Behaviors
Results or Return on Investment (ROI)
76
SPECIAL TOPICS IN TRAINING ANDDEVELOPMENT
bull Cross-cultural Training
bull Orientation Training
bull Team-training and Cross-training
bull Diversity Training
COMPENSATION AND REWARDS
78
COMPENSATION OVERVIEW
Compensation is the process of directly and indirectly rewarding employees on a current or deferred basis for their performance of assigned tasks It consists of
1048698 Direct Financial Compensation Wages salaries bonuses commissions
1048698 Indirect Financial Compensation All financial rewards not included in direct compensation (benefits)
1048698 Non-financial Compensation Satisfaction received from the job or from the psychological andor physical environment of the job
JOB EVALUATION TECHNIQUE
The general step-wise procedure for job evaluation is as under
1 Select the group of jobs
2 Study the job (job analysis)
3 Prepare job description ndash approval
4 Device an evaluation plan ndash common characteristicstraits
5 Establish a committee of raters and rateevaluate
6 Group or classify the jobs
7 Convert job grades to money value along with Wage survey
8 Obtain approval from Union and Management
9 Establish a suitable grievance procedure
COMPONENTS OF COMPENSATION SYSTEM
1 Basic WagesSalaries
2 Dearness Allowance
3 Bonus
4 Commissions
5 Mixed Plans
6 Piece Rate Wages
7 Sign on Bonuses
8 Profit Sharing Payments
9 Fringe Benefits
COMPENSATION EQUITY
1048698 External Equity Employees are paid comparably to those who perform similar jobs in other industries
1048698 Internal Equity Employees are paid according to relative value of their jobs within an organisation
1048698 Employee Equity Individuals performing similar jobs for the same firm are rewarded according to factors unique to the employee such as performance level or seniority
1048698 Team Equity More productive teams receive greater rewards than less productive groups
INTERNATIONAL COMPENSATION
Elements of Expatriate Compensation
Basic Pay Amount of money that an expatriate receives from home country Used for
Bonus calculation
Benefits
1048698 One third of compensation
1048698 Extra vacation special leaves air fares for their families for an annual visit home
emergency leaves
1048698 Housing
1048698 Utilities ndash air conditioner bottled water electricity telephone call expenses
1048698 Car ndash car expenses chauffeur hired vehicle
Helping hands servants gardeners security
1048698 Club subscription
1048698 Educational benefits
Allowances
1048698 COLA ndash cost of living between home country and foreign country inflation
1048698 Relocation allowances
1048698 Hardship allowances
1048698 Separation allowances
1048698 Clothing allowances ndash very cold climates
1048698 Home leave allowances
1048698 Spouse assistance allowances
REWARDS SYSTEM
Reward System as Followed by Organisations
1 Incentive and Rewards
2 Competency Related Pay
3 Skill Based Pay
4 Team Based Rewards
5 Profit Sharing
7 Employee Ownership
8 Statutory and Voluntary Benefits
FORMS OF RECOGNITION
Examples of Formal Recognition
1 Milestone Service Anniversary Awards (5101520 25 years of service)
2 Ideas Improvement amp Performance Awards
3 Service Awards
a) Teamworkleadership
b) Customer Service
c) Citizenship
d) Innovation
e) Attendance
4 Awards would include
a) PlaquesDesk trophies
b) Certificates
c) GiftsCertificates
d) Picture in the webpage
FORMS OF RECOGNITION
Examples of Informal Recognition
1 Team Building Retreats
2 Acknowledgement of DeptDivision goals achieved
3 Project Completion meals
4 Birthday cakes and cards
5 Picnics
6 Staff Appreciation Day
7 Holiday Parties
8 Dress-up Days
9 Corporate Merchandise
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-
45
PERFORMANCE COACHING
The performance coaching process involves five strategies
1 Creating a partnership role To make employees realize that both employees and manger are responsible for performance and build trust amongst them
2 Commitment Inspiring employees to be committed to the goals
3 Competency development Awareness towards developing skills and
competencies required to reach to organizational goals
4 Perseverance Developing lsquonever say diersquo attitude among organizational members
5 Shaping the environment Creating conditions for employee development
46
THE COACHING DISCUSSION
Kinlawrsquos Approach
Kinlaw suggests a three-stage approach to the coaching discussion as follows
1048698 Confronting or presenting
1048698 Using reactions to develop information
1048698 Resolving or resolution
47
THE COACHING DISCUSSION
bull Fourniesrsquo Approach
bull Step 1 Get the employeersquos agreement that a problem existsbull Step 2 Mutually discuss alternative solutions to the problembull Step 3 Mutually agree on actions to be taken to solve the problembull Step 4 Follow-up to measure resultsbull Step 5 Recognize any achievement when it occurs
48
MENTORING
bull Mentorship is a process where an experienced person provides help guidance support to nurture and develop a less experienced person referred to as a proteacutegeacute apprentice mentee or (person) It improves the self esteem of mentee and increases hisher chance for success
49
MENTORING - Kinds
1048698 New-hire mentorship
1048698 High-potential mentorship
1048698 Mentorship in Education
50
POTENTIAL APPRAISAL CAREER AND SUCCESSION
PLANNING
51
POTENTIAL APPRAISAL
Purpose of Potential Appraisal
Potential appraisal serves the following purposes
1048698 To advise employees about their overall career development and future prospects
1048698 Help the organisation to chalk out succession plans
1048698 Motivate the employees to further develop their skills and competencies
1048698 To identify the training needs
52
POTENTIAL APPRAISAL
Techniques of Potential Appraisal
1048698 Self-appraisals
1048698 Peer appraisals
1048698 Superior appraisals
1048698 MBO
1048698 Psychological and psychometric tests
1048698 Management games like role playing
1048698 Leadership exercises etc
53
CAREER PLANNING
Steps in Career Planning Process
Step One Self Assessment
Step Two Goal Setting
Step Three AcademicCareer Options
Step Four Plan of Action
Step Five Catch Hold of Opportunities
54
bull Succession Planning refers to the process of developing the second line for taking up a higher role in the organization
SUCCESSION PLANNING
55
HR MEASUREMENT AND AUDIT
bull Audit helps the organization have a clear understanding of the lacunae and better align the HR processes with Business goals
bull The audit itself is a diagnostic tool not a prescriptive instrument It helps in identifying what is missing or needs to improve It is most useful when an organization is ready to act on the findings and to evolve its HR function to play a greater strategic role
56
WHY CONDUCT AN HR AUDIT
1048698 It helps promote more professionalism and professional management
1048698 HR audit helps an organization to be aware of its present practices policies
and their adherence
1048698 Benchmarking to improve HR practices
1048698 The organization can benchmark its processes with best-in-class organizations
1048698 HR audit suggest improvement measures keeping the organizational strategic goals and vision in mind
57
THE HR AUDIT PROCESS
InterviewsQuestionnaires
The audit team interviews the following
1048698 Top Management (CEO Unit Heads)
1048698 Line Managers (eg Managers in production quality purchase and marketing)
1048698 HRD Staff
1048698 Workmen and others
Observation and Recording
Follow-up and Corrections done
58
HUMAN RESOURCE ACCOUNTING
bull The American Accounting Associationrsquos Committee on Human Resource Accounting (1973) has defined Human Resource Accounting as ldquothe process of identifying and measuring data about human resources and communicating this information to interested partiesrdquo
bull It is the measurement and reporting of the cost and value of people in organizational Resources
59
METHODS OF HUMAN RESOURCE ACCOUNTING
Methods of Valuing and Accounting of Human Resources
The methods to value and account for human resources can be classified into the following categories
1 Methods based on costs (which include costs incurred by the company to recruit hire train and develop human resources)
2 Methods based on economic value of human resources and the capitalisation of companyrsquos earnings
60
HUMAN RESOURCE ACCOUNTING
Methods based on Cost
Historical Cost Method
Under this method the cost of acquisition ie selection hiring training costs of employees are capitalised and written off over the expected useful life of the employees In case the personnel leave the company before the anticipated period of service then the unamortised portion of costs remaining in the companyrsquos books is written off against the profit and loss account in that year If the period of service exceeds the anticipated time then amortisation of costs is rescheduled
Replacement Cost Method
Under this method the human resources are valued at their replacement cost ie The monetary implications of replacing existing personnel
Standard Cost Method
Under this method standard costs of recruiting hiring training and developing per grade of employees are determined annually The total standard cost for all personnel of the company is the value of human resources
61
HUMAN RESOURCE ACCOUNTING
bull HR Accounting based on Value
bull Economic Value Method
bull Under this method the net present value of incremental cash flows attributed to human resources is taken as the asset value
62
HUMAN RESOURCE INFORMATION SYSTEMS(HRIS)
bull An information system may be automated or manual and involves collectingprocessing transmitting and disseminating data that represents user information
63
HRIS ndash APPLICATION AND UTILITIES
Personnel administration It will encompass information about each employee
such as name address personal details etc
1048698 Salary administration Generate personnel cost reports conduct lsquowhat if
analysisrsquo provide compensation history
1048698 Leave and absence recording Essentially being able to provide comprehensive
method of tracking absences late coming reports on excess leave availed leave
lapsed
1048698 Skill inventory Recording of acquired skills and monitor the skill database at the
employee and organisational level
1048698 Performance appraisal The system should record individual employee
performance appraisal data such as appraisal ratings due date of appraisal
training needs identified during the appraisal process
1048698 Recruitment Record recruitment cost lead time to fill a vacant position
recruitment methods applicant and resume management
1048698 Career planning HRIS System can provide succession plan reports identifying
employees earmarked for future position
64
HRIS ndash DISADVANTAGES
May be expensive ndash financing the technology
1048698 Thorough understanding of what constitutes quality information for the user
1048698 Computer cannot substitute human beings
HUMAN RESOURCE DEVELOPMENT SYSTEM
66
HRD
HRD play a very crucial role in organization Henery Ford once said ldquotake out my building take out my machines take out all capital but leave my men with me and I will become Henry Ford againrdquo HRD is considered as key to higher productivity better relations and greater profitability for any organization
According to Daftur
ldquoHRD is a system and process concerned with an organized series of learning activities within specified time limits designed to produce behavioral changes in the learner in such a way that it acquires desired level of competence for present or future rolerdquo
67
HRDORGANIZATION ALIGNMENT MODEL
TRAINING AND DEVELOPMENT
69
NEED FOR TRAINING AND DEVELOPMENT
bull Technological advances bull Organizational complexity bull Organizational tenure bull Human relations movement
70
THE TRAINING PROCESS
71
Needs Assessment
72
bull Lecturesbull Audio Visualsbull On-the-job Training (OJT)bull Programmed Instructionbull Computer Assisted Instruction (CAI)bull Simulation
Methods and Techniques of Training
73
Training Methods for Management Development
1048698 Seminars and Conferences
1048698 Case Study
1048698 Role Playing
1048698 Management Games
1048698 Sensitivity Training
74
bull Implementation of the Training Program
bull Evaluation of Training Program
75
Kirkpatrick Model for Evaluating Effectiveness of Training Programs
1 Reactions
2 Learning
3 Behaviors
Results or Return on Investment (ROI)
76
SPECIAL TOPICS IN TRAINING ANDDEVELOPMENT
bull Cross-cultural Training
bull Orientation Training
bull Team-training and Cross-training
bull Diversity Training
COMPENSATION AND REWARDS
78
COMPENSATION OVERVIEW
Compensation is the process of directly and indirectly rewarding employees on a current or deferred basis for their performance of assigned tasks It consists of
1048698 Direct Financial Compensation Wages salaries bonuses commissions
1048698 Indirect Financial Compensation All financial rewards not included in direct compensation (benefits)
1048698 Non-financial Compensation Satisfaction received from the job or from the psychological andor physical environment of the job
JOB EVALUATION TECHNIQUE
The general step-wise procedure for job evaluation is as under
1 Select the group of jobs
2 Study the job (job analysis)
3 Prepare job description ndash approval
4 Device an evaluation plan ndash common characteristicstraits
5 Establish a committee of raters and rateevaluate
6 Group or classify the jobs
7 Convert job grades to money value along with Wage survey
8 Obtain approval from Union and Management
9 Establish a suitable grievance procedure
COMPONENTS OF COMPENSATION SYSTEM
1 Basic WagesSalaries
2 Dearness Allowance
3 Bonus
4 Commissions
5 Mixed Plans
6 Piece Rate Wages
7 Sign on Bonuses
8 Profit Sharing Payments
9 Fringe Benefits
COMPENSATION EQUITY
1048698 External Equity Employees are paid comparably to those who perform similar jobs in other industries
1048698 Internal Equity Employees are paid according to relative value of their jobs within an organisation
1048698 Employee Equity Individuals performing similar jobs for the same firm are rewarded according to factors unique to the employee such as performance level or seniority
1048698 Team Equity More productive teams receive greater rewards than less productive groups
INTERNATIONAL COMPENSATION
Elements of Expatriate Compensation
Basic Pay Amount of money that an expatriate receives from home country Used for
Bonus calculation
Benefits
1048698 One third of compensation
1048698 Extra vacation special leaves air fares for their families for an annual visit home
emergency leaves
1048698 Housing
1048698 Utilities ndash air conditioner bottled water electricity telephone call expenses
1048698 Car ndash car expenses chauffeur hired vehicle
Helping hands servants gardeners security
1048698 Club subscription
1048698 Educational benefits
Allowances
1048698 COLA ndash cost of living between home country and foreign country inflation
1048698 Relocation allowances
1048698 Hardship allowances
1048698 Separation allowances
1048698 Clothing allowances ndash very cold climates
1048698 Home leave allowances
1048698 Spouse assistance allowances
REWARDS SYSTEM
Reward System as Followed by Organisations
1 Incentive and Rewards
2 Competency Related Pay
3 Skill Based Pay
4 Team Based Rewards
5 Profit Sharing
7 Employee Ownership
8 Statutory and Voluntary Benefits
FORMS OF RECOGNITION
Examples of Formal Recognition
1 Milestone Service Anniversary Awards (5101520 25 years of service)
2 Ideas Improvement amp Performance Awards
3 Service Awards
a) Teamworkleadership
b) Customer Service
c) Citizenship
d) Innovation
e) Attendance
4 Awards would include
a) PlaquesDesk trophies
b) Certificates
c) GiftsCertificates
d) Picture in the webpage
FORMS OF RECOGNITION
Examples of Informal Recognition
1 Team Building Retreats
2 Acknowledgement of DeptDivision goals achieved
3 Project Completion meals
4 Birthday cakes and cards
5 Picnics
6 Staff Appreciation Day
7 Holiday Parties
8 Dress-up Days
9 Corporate Merchandise
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-
46
THE COACHING DISCUSSION
Kinlawrsquos Approach
Kinlaw suggests a three-stage approach to the coaching discussion as follows
1048698 Confronting or presenting
1048698 Using reactions to develop information
1048698 Resolving or resolution
47
THE COACHING DISCUSSION
bull Fourniesrsquo Approach
bull Step 1 Get the employeersquos agreement that a problem existsbull Step 2 Mutually discuss alternative solutions to the problembull Step 3 Mutually agree on actions to be taken to solve the problembull Step 4 Follow-up to measure resultsbull Step 5 Recognize any achievement when it occurs
48
MENTORING
bull Mentorship is a process where an experienced person provides help guidance support to nurture and develop a less experienced person referred to as a proteacutegeacute apprentice mentee or (person) It improves the self esteem of mentee and increases hisher chance for success
49
MENTORING - Kinds
1048698 New-hire mentorship
1048698 High-potential mentorship
1048698 Mentorship in Education
50
POTENTIAL APPRAISAL CAREER AND SUCCESSION
PLANNING
51
POTENTIAL APPRAISAL
Purpose of Potential Appraisal
Potential appraisal serves the following purposes
1048698 To advise employees about their overall career development and future prospects
1048698 Help the organisation to chalk out succession plans
1048698 Motivate the employees to further develop their skills and competencies
1048698 To identify the training needs
52
POTENTIAL APPRAISAL
Techniques of Potential Appraisal
1048698 Self-appraisals
1048698 Peer appraisals
1048698 Superior appraisals
1048698 MBO
1048698 Psychological and psychometric tests
1048698 Management games like role playing
1048698 Leadership exercises etc
53
CAREER PLANNING
Steps in Career Planning Process
Step One Self Assessment
Step Two Goal Setting
Step Three AcademicCareer Options
Step Four Plan of Action
Step Five Catch Hold of Opportunities
54
bull Succession Planning refers to the process of developing the second line for taking up a higher role in the organization
SUCCESSION PLANNING
55
HR MEASUREMENT AND AUDIT
bull Audit helps the organization have a clear understanding of the lacunae and better align the HR processes with Business goals
bull The audit itself is a diagnostic tool not a prescriptive instrument It helps in identifying what is missing or needs to improve It is most useful when an organization is ready to act on the findings and to evolve its HR function to play a greater strategic role
56
WHY CONDUCT AN HR AUDIT
1048698 It helps promote more professionalism and professional management
1048698 HR audit helps an organization to be aware of its present practices policies
and their adherence
1048698 Benchmarking to improve HR practices
1048698 The organization can benchmark its processes with best-in-class organizations
1048698 HR audit suggest improvement measures keeping the organizational strategic goals and vision in mind
57
THE HR AUDIT PROCESS
InterviewsQuestionnaires
The audit team interviews the following
1048698 Top Management (CEO Unit Heads)
1048698 Line Managers (eg Managers in production quality purchase and marketing)
1048698 HRD Staff
1048698 Workmen and others
Observation and Recording
Follow-up and Corrections done
58
HUMAN RESOURCE ACCOUNTING
bull The American Accounting Associationrsquos Committee on Human Resource Accounting (1973) has defined Human Resource Accounting as ldquothe process of identifying and measuring data about human resources and communicating this information to interested partiesrdquo
bull It is the measurement and reporting of the cost and value of people in organizational Resources
59
METHODS OF HUMAN RESOURCE ACCOUNTING
Methods of Valuing and Accounting of Human Resources
The methods to value and account for human resources can be classified into the following categories
1 Methods based on costs (which include costs incurred by the company to recruit hire train and develop human resources)
2 Methods based on economic value of human resources and the capitalisation of companyrsquos earnings
60
HUMAN RESOURCE ACCOUNTING
Methods based on Cost
Historical Cost Method
Under this method the cost of acquisition ie selection hiring training costs of employees are capitalised and written off over the expected useful life of the employees In case the personnel leave the company before the anticipated period of service then the unamortised portion of costs remaining in the companyrsquos books is written off against the profit and loss account in that year If the period of service exceeds the anticipated time then amortisation of costs is rescheduled
Replacement Cost Method
Under this method the human resources are valued at their replacement cost ie The monetary implications of replacing existing personnel
Standard Cost Method
Under this method standard costs of recruiting hiring training and developing per grade of employees are determined annually The total standard cost for all personnel of the company is the value of human resources
61
HUMAN RESOURCE ACCOUNTING
bull HR Accounting based on Value
bull Economic Value Method
bull Under this method the net present value of incremental cash flows attributed to human resources is taken as the asset value
62
HUMAN RESOURCE INFORMATION SYSTEMS(HRIS)
bull An information system may be automated or manual and involves collectingprocessing transmitting and disseminating data that represents user information
63
HRIS ndash APPLICATION AND UTILITIES
Personnel administration It will encompass information about each employee
such as name address personal details etc
1048698 Salary administration Generate personnel cost reports conduct lsquowhat if
analysisrsquo provide compensation history
1048698 Leave and absence recording Essentially being able to provide comprehensive
method of tracking absences late coming reports on excess leave availed leave
lapsed
1048698 Skill inventory Recording of acquired skills and monitor the skill database at the
employee and organisational level
1048698 Performance appraisal The system should record individual employee
performance appraisal data such as appraisal ratings due date of appraisal
training needs identified during the appraisal process
1048698 Recruitment Record recruitment cost lead time to fill a vacant position
recruitment methods applicant and resume management
1048698 Career planning HRIS System can provide succession plan reports identifying
employees earmarked for future position
64
HRIS ndash DISADVANTAGES
May be expensive ndash financing the technology
1048698 Thorough understanding of what constitutes quality information for the user
1048698 Computer cannot substitute human beings
HUMAN RESOURCE DEVELOPMENT SYSTEM
66
HRD
HRD play a very crucial role in organization Henery Ford once said ldquotake out my building take out my machines take out all capital but leave my men with me and I will become Henry Ford againrdquo HRD is considered as key to higher productivity better relations and greater profitability for any organization
According to Daftur
ldquoHRD is a system and process concerned with an organized series of learning activities within specified time limits designed to produce behavioral changes in the learner in such a way that it acquires desired level of competence for present or future rolerdquo
67
HRDORGANIZATION ALIGNMENT MODEL
TRAINING AND DEVELOPMENT
69
NEED FOR TRAINING AND DEVELOPMENT
bull Technological advances bull Organizational complexity bull Organizational tenure bull Human relations movement
70
THE TRAINING PROCESS
71
Needs Assessment
72
bull Lecturesbull Audio Visualsbull On-the-job Training (OJT)bull Programmed Instructionbull Computer Assisted Instruction (CAI)bull Simulation
Methods and Techniques of Training
73
Training Methods for Management Development
1048698 Seminars and Conferences
1048698 Case Study
1048698 Role Playing
1048698 Management Games
1048698 Sensitivity Training
74
bull Implementation of the Training Program
bull Evaluation of Training Program
75
Kirkpatrick Model for Evaluating Effectiveness of Training Programs
1 Reactions
2 Learning
3 Behaviors
Results or Return on Investment (ROI)
76
SPECIAL TOPICS IN TRAINING ANDDEVELOPMENT
bull Cross-cultural Training
bull Orientation Training
bull Team-training and Cross-training
bull Diversity Training
COMPENSATION AND REWARDS
78
COMPENSATION OVERVIEW
Compensation is the process of directly and indirectly rewarding employees on a current or deferred basis for their performance of assigned tasks It consists of
1048698 Direct Financial Compensation Wages salaries bonuses commissions
1048698 Indirect Financial Compensation All financial rewards not included in direct compensation (benefits)
1048698 Non-financial Compensation Satisfaction received from the job or from the psychological andor physical environment of the job
JOB EVALUATION TECHNIQUE
The general step-wise procedure for job evaluation is as under
1 Select the group of jobs
2 Study the job (job analysis)
3 Prepare job description ndash approval
4 Device an evaluation plan ndash common characteristicstraits
5 Establish a committee of raters and rateevaluate
6 Group or classify the jobs
7 Convert job grades to money value along with Wage survey
8 Obtain approval from Union and Management
9 Establish a suitable grievance procedure
COMPONENTS OF COMPENSATION SYSTEM
1 Basic WagesSalaries
2 Dearness Allowance
3 Bonus
4 Commissions
5 Mixed Plans
6 Piece Rate Wages
7 Sign on Bonuses
8 Profit Sharing Payments
9 Fringe Benefits
COMPENSATION EQUITY
1048698 External Equity Employees are paid comparably to those who perform similar jobs in other industries
1048698 Internal Equity Employees are paid according to relative value of their jobs within an organisation
1048698 Employee Equity Individuals performing similar jobs for the same firm are rewarded according to factors unique to the employee such as performance level or seniority
1048698 Team Equity More productive teams receive greater rewards than less productive groups
INTERNATIONAL COMPENSATION
Elements of Expatriate Compensation
Basic Pay Amount of money that an expatriate receives from home country Used for
Bonus calculation
Benefits
1048698 One third of compensation
1048698 Extra vacation special leaves air fares for their families for an annual visit home
emergency leaves
1048698 Housing
1048698 Utilities ndash air conditioner bottled water electricity telephone call expenses
1048698 Car ndash car expenses chauffeur hired vehicle
Helping hands servants gardeners security
1048698 Club subscription
1048698 Educational benefits
Allowances
1048698 COLA ndash cost of living between home country and foreign country inflation
1048698 Relocation allowances
1048698 Hardship allowances
1048698 Separation allowances
1048698 Clothing allowances ndash very cold climates
1048698 Home leave allowances
1048698 Spouse assistance allowances
REWARDS SYSTEM
Reward System as Followed by Organisations
1 Incentive and Rewards
2 Competency Related Pay
3 Skill Based Pay
4 Team Based Rewards
5 Profit Sharing
7 Employee Ownership
8 Statutory and Voluntary Benefits
FORMS OF RECOGNITION
Examples of Formal Recognition
1 Milestone Service Anniversary Awards (5101520 25 years of service)
2 Ideas Improvement amp Performance Awards
3 Service Awards
a) Teamworkleadership
b) Customer Service
c) Citizenship
d) Innovation
e) Attendance
4 Awards would include
a) PlaquesDesk trophies
b) Certificates
c) GiftsCertificates
d) Picture in the webpage
FORMS OF RECOGNITION
Examples of Informal Recognition
1 Team Building Retreats
2 Acknowledgement of DeptDivision goals achieved
3 Project Completion meals
4 Birthday cakes and cards
5 Picnics
6 Staff Appreciation Day
7 Holiday Parties
8 Dress-up Days
9 Corporate Merchandise
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-
47
THE COACHING DISCUSSION
bull Fourniesrsquo Approach
bull Step 1 Get the employeersquos agreement that a problem existsbull Step 2 Mutually discuss alternative solutions to the problembull Step 3 Mutually agree on actions to be taken to solve the problembull Step 4 Follow-up to measure resultsbull Step 5 Recognize any achievement when it occurs
48
MENTORING
bull Mentorship is a process where an experienced person provides help guidance support to nurture and develop a less experienced person referred to as a proteacutegeacute apprentice mentee or (person) It improves the self esteem of mentee and increases hisher chance for success
49
MENTORING - Kinds
1048698 New-hire mentorship
1048698 High-potential mentorship
1048698 Mentorship in Education
50
POTENTIAL APPRAISAL CAREER AND SUCCESSION
PLANNING
51
POTENTIAL APPRAISAL
Purpose of Potential Appraisal
Potential appraisal serves the following purposes
1048698 To advise employees about their overall career development and future prospects
1048698 Help the organisation to chalk out succession plans
1048698 Motivate the employees to further develop their skills and competencies
1048698 To identify the training needs
52
POTENTIAL APPRAISAL
Techniques of Potential Appraisal
1048698 Self-appraisals
1048698 Peer appraisals
1048698 Superior appraisals
1048698 MBO
1048698 Psychological and psychometric tests
1048698 Management games like role playing
1048698 Leadership exercises etc
53
CAREER PLANNING
Steps in Career Planning Process
Step One Self Assessment
Step Two Goal Setting
Step Three AcademicCareer Options
Step Four Plan of Action
Step Five Catch Hold of Opportunities
54
bull Succession Planning refers to the process of developing the second line for taking up a higher role in the organization
SUCCESSION PLANNING
55
HR MEASUREMENT AND AUDIT
bull Audit helps the organization have a clear understanding of the lacunae and better align the HR processes with Business goals
bull The audit itself is a diagnostic tool not a prescriptive instrument It helps in identifying what is missing or needs to improve It is most useful when an organization is ready to act on the findings and to evolve its HR function to play a greater strategic role
56
WHY CONDUCT AN HR AUDIT
1048698 It helps promote more professionalism and professional management
1048698 HR audit helps an organization to be aware of its present practices policies
and their adherence
1048698 Benchmarking to improve HR practices
1048698 The organization can benchmark its processes with best-in-class organizations
1048698 HR audit suggest improvement measures keeping the organizational strategic goals and vision in mind
57
THE HR AUDIT PROCESS
InterviewsQuestionnaires
The audit team interviews the following
1048698 Top Management (CEO Unit Heads)
1048698 Line Managers (eg Managers in production quality purchase and marketing)
1048698 HRD Staff
1048698 Workmen and others
Observation and Recording
Follow-up and Corrections done
58
HUMAN RESOURCE ACCOUNTING
bull The American Accounting Associationrsquos Committee on Human Resource Accounting (1973) has defined Human Resource Accounting as ldquothe process of identifying and measuring data about human resources and communicating this information to interested partiesrdquo
bull It is the measurement and reporting of the cost and value of people in organizational Resources
59
METHODS OF HUMAN RESOURCE ACCOUNTING
Methods of Valuing and Accounting of Human Resources
The methods to value and account for human resources can be classified into the following categories
1 Methods based on costs (which include costs incurred by the company to recruit hire train and develop human resources)
2 Methods based on economic value of human resources and the capitalisation of companyrsquos earnings
60
HUMAN RESOURCE ACCOUNTING
Methods based on Cost
Historical Cost Method
Under this method the cost of acquisition ie selection hiring training costs of employees are capitalised and written off over the expected useful life of the employees In case the personnel leave the company before the anticipated period of service then the unamortised portion of costs remaining in the companyrsquos books is written off against the profit and loss account in that year If the period of service exceeds the anticipated time then amortisation of costs is rescheduled
Replacement Cost Method
Under this method the human resources are valued at their replacement cost ie The monetary implications of replacing existing personnel
Standard Cost Method
Under this method standard costs of recruiting hiring training and developing per grade of employees are determined annually The total standard cost for all personnel of the company is the value of human resources
61
HUMAN RESOURCE ACCOUNTING
bull HR Accounting based on Value
bull Economic Value Method
bull Under this method the net present value of incremental cash flows attributed to human resources is taken as the asset value
62
HUMAN RESOURCE INFORMATION SYSTEMS(HRIS)
bull An information system may be automated or manual and involves collectingprocessing transmitting and disseminating data that represents user information
63
HRIS ndash APPLICATION AND UTILITIES
Personnel administration It will encompass information about each employee
such as name address personal details etc
1048698 Salary administration Generate personnel cost reports conduct lsquowhat if
analysisrsquo provide compensation history
1048698 Leave and absence recording Essentially being able to provide comprehensive
method of tracking absences late coming reports on excess leave availed leave
lapsed
1048698 Skill inventory Recording of acquired skills and monitor the skill database at the
employee and organisational level
1048698 Performance appraisal The system should record individual employee
performance appraisal data such as appraisal ratings due date of appraisal
training needs identified during the appraisal process
1048698 Recruitment Record recruitment cost lead time to fill a vacant position
recruitment methods applicant and resume management
1048698 Career planning HRIS System can provide succession plan reports identifying
employees earmarked for future position
64
HRIS ndash DISADVANTAGES
May be expensive ndash financing the technology
1048698 Thorough understanding of what constitutes quality information for the user
1048698 Computer cannot substitute human beings
HUMAN RESOURCE DEVELOPMENT SYSTEM
66
HRD
HRD play a very crucial role in organization Henery Ford once said ldquotake out my building take out my machines take out all capital but leave my men with me and I will become Henry Ford againrdquo HRD is considered as key to higher productivity better relations and greater profitability for any organization
According to Daftur
ldquoHRD is a system and process concerned with an organized series of learning activities within specified time limits designed to produce behavioral changes in the learner in such a way that it acquires desired level of competence for present or future rolerdquo
67
HRDORGANIZATION ALIGNMENT MODEL
TRAINING AND DEVELOPMENT
69
NEED FOR TRAINING AND DEVELOPMENT
bull Technological advances bull Organizational complexity bull Organizational tenure bull Human relations movement
70
THE TRAINING PROCESS
71
Needs Assessment
72
bull Lecturesbull Audio Visualsbull On-the-job Training (OJT)bull Programmed Instructionbull Computer Assisted Instruction (CAI)bull Simulation
Methods and Techniques of Training
73
Training Methods for Management Development
1048698 Seminars and Conferences
1048698 Case Study
1048698 Role Playing
1048698 Management Games
1048698 Sensitivity Training
74
bull Implementation of the Training Program
bull Evaluation of Training Program
75
Kirkpatrick Model for Evaluating Effectiveness of Training Programs
1 Reactions
2 Learning
3 Behaviors
Results or Return on Investment (ROI)
76
SPECIAL TOPICS IN TRAINING ANDDEVELOPMENT
bull Cross-cultural Training
bull Orientation Training
bull Team-training and Cross-training
bull Diversity Training
COMPENSATION AND REWARDS
78
COMPENSATION OVERVIEW
Compensation is the process of directly and indirectly rewarding employees on a current or deferred basis for their performance of assigned tasks It consists of
1048698 Direct Financial Compensation Wages salaries bonuses commissions
1048698 Indirect Financial Compensation All financial rewards not included in direct compensation (benefits)
1048698 Non-financial Compensation Satisfaction received from the job or from the psychological andor physical environment of the job
JOB EVALUATION TECHNIQUE
The general step-wise procedure for job evaluation is as under
1 Select the group of jobs
2 Study the job (job analysis)
3 Prepare job description ndash approval
4 Device an evaluation plan ndash common characteristicstraits
5 Establish a committee of raters and rateevaluate
6 Group or classify the jobs
7 Convert job grades to money value along with Wage survey
8 Obtain approval from Union and Management
9 Establish a suitable grievance procedure
COMPONENTS OF COMPENSATION SYSTEM
1 Basic WagesSalaries
2 Dearness Allowance
3 Bonus
4 Commissions
5 Mixed Plans
6 Piece Rate Wages
7 Sign on Bonuses
8 Profit Sharing Payments
9 Fringe Benefits
COMPENSATION EQUITY
1048698 External Equity Employees are paid comparably to those who perform similar jobs in other industries
1048698 Internal Equity Employees are paid according to relative value of their jobs within an organisation
1048698 Employee Equity Individuals performing similar jobs for the same firm are rewarded according to factors unique to the employee such as performance level or seniority
1048698 Team Equity More productive teams receive greater rewards than less productive groups
INTERNATIONAL COMPENSATION
Elements of Expatriate Compensation
Basic Pay Amount of money that an expatriate receives from home country Used for
Bonus calculation
Benefits
1048698 One third of compensation
1048698 Extra vacation special leaves air fares for their families for an annual visit home
emergency leaves
1048698 Housing
1048698 Utilities ndash air conditioner bottled water electricity telephone call expenses
1048698 Car ndash car expenses chauffeur hired vehicle
Helping hands servants gardeners security
1048698 Club subscription
1048698 Educational benefits
Allowances
1048698 COLA ndash cost of living between home country and foreign country inflation
1048698 Relocation allowances
1048698 Hardship allowances
1048698 Separation allowances
1048698 Clothing allowances ndash very cold climates
1048698 Home leave allowances
1048698 Spouse assistance allowances
REWARDS SYSTEM
Reward System as Followed by Organisations
1 Incentive and Rewards
2 Competency Related Pay
3 Skill Based Pay
4 Team Based Rewards
5 Profit Sharing
7 Employee Ownership
8 Statutory and Voluntary Benefits
FORMS OF RECOGNITION
Examples of Formal Recognition
1 Milestone Service Anniversary Awards (5101520 25 years of service)
2 Ideas Improvement amp Performance Awards
3 Service Awards
a) Teamworkleadership
b) Customer Service
c) Citizenship
d) Innovation
e) Attendance
4 Awards would include
a) PlaquesDesk trophies
b) Certificates
c) GiftsCertificates
d) Picture in the webpage
FORMS OF RECOGNITION
Examples of Informal Recognition
1 Team Building Retreats
2 Acknowledgement of DeptDivision goals achieved
3 Project Completion meals
4 Birthday cakes and cards
5 Picnics
6 Staff Appreciation Day
7 Holiday Parties
8 Dress-up Days
9 Corporate Merchandise
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-
48
MENTORING
bull Mentorship is a process where an experienced person provides help guidance support to nurture and develop a less experienced person referred to as a proteacutegeacute apprentice mentee or (person) It improves the self esteem of mentee and increases hisher chance for success
49
MENTORING - Kinds
1048698 New-hire mentorship
1048698 High-potential mentorship
1048698 Mentorship in Education
50
POTENTIAL APPRAISAL CAREER AND SUCCESSION
PLANNING
51
POTENTIAL APPRAISAL
Purpose of Potential Appraisal
Potential appraisal serves the following purposes
1048698 To advise employees about their overall career development and future prospects
1048698 Help the organisation to chalk out succession plans
1048698 Motivate the employees to further develop their skills and competencies
1048698 To identify the training needs
52
POTENTIAL APPRAISAL
Techniques of Potential Appraisal
1048698 Self-appraisals
1048698 Peer appraisals
1048698 Superior appraisals
1048698 MBO
1048698 Psychological and psychometric tests
1048698 Management games like role playing
1048698 Leadership exercises etc
53
CAREER PLANNING
Steps in Career Planning Process
Step One Self Assessment
Step Two Goal Setting
Step Three AcademicCareer Options
Step Four Plan of Action
Step Five Catch Hold of Opportunities
54
bull Succession Planning refers to the process of developing the second line for taking up a higher role in the organization
SUCCESSION PLANNING
55
HR MEASUREMENT AND AUDIT
bull Audit helps the organization have a clear understanding of the lacunae and better align the HR processes with Business goals
bull The audit itself is a diagnostic tool not a prescriptive instrument It helps in identifying what is missing or needs to improve It is most useful when an organization is ready to act on the findings and to evolve its HR function to play a greater strategic role
56
WHY CONDUCT AN HR AUDIT
1048698 It helps promote more professionalism and professional management
1048698 HR audit helps an organization to be aware of its present practices policies
and their adherence
1048698 Benchmarking to improve HR practices
1048698 The organization can benchmark its processes with best-in-class organizations
1048698 HR audit suggest improvement measures keeping the organizational strategic goals and vision in mind
57
THE HR AUDIT PROCESS
InterviewsQuestionnaires
The audit team interviews the following
1048698 Top Management (CEO Unit Heads)
1048698 Line Managers (eg Managers in production quality purchase and marketing)
1048698 HRD Staff
1048698 Workmen and others
Observation and Recording
Follow-up and Corrections done
58
HUMAN RESOURCE ACCOUNTING
bull The American Accounting Associationrsquos Committee on Human Resource Accounting (1973) has defined Human Resource Accounting as ldquothe process of identifying and measuring data about human resources and communicating this information to interested partiesrdquo
bull It is the measurement and reporting of the cost and value of people in organizational Resources
59
METHODS OF HUMAN RESOURCE ACCOUNTING
Methods of Valuing and Accounting of Human Resources
The methods to value and account for human resources can be classified into the following categories
1 Methods based on costs (which include costs incurred by the company to recruit hire train and develop human resources)
2 Methods based on economic value of human resources and the capitalisation of companyrsquos earnings
60
HUMAN RESOURCE ACCOUNTING
Methods based on Cost
Historical Cost Method
Under this method the cost of acquisition ie selection hiring training costs of employees are capitalised and written off over the expected useful life of the employees In case the personnel leave the company before the anticipated period of service then the unamortised portion of costs remaining in the companyrsquos books is written off against the profit and loss account in that year If the period of service exceeds the anticipated time then amortisation of costs is rescheduled
Replacement Cost Method
Under this method the human resources are valued at their replacement cost ie The monetary implications of replacing existing personnel
Standard Cost Method
Under this method standard costs of recruiting hiring training and developing per grade of employees are determined annually The total standard cost for all personnel of the company is the value of human resources
61
HUMAN RESOURCE ACCOUNTING
bull HR Accounting based on Value
bull Economic Value Method
bull Under this method the net present value of incremental cash flows attributed to human resources is taken as the asset value
62
HUMAN RESOURCE INFORMATION SYSTEMS(HRIS)
bull An information system may be automated or manual and involves collectingprocessing transmitting and disseminating data that represents user information
63
HRIS ndash APPLICATION AND UTILITIES
Personnel administration It will encompass information about each employee
such as name address personal details etc
1048698 Salary administration Generate personnel cost reports conduct lsquowhat if
analysisrsquo provide compensation history
1048698 Leave and absence recording Essentially being able to provide comprehensive
method of tracking absences late coming reports on excess leave availed leave
lapsed
1048698 Skill inventory Recording of acquired skills and monitor the skill database at the
employee and organisational level
1048698 Performance appraisal The system should record individual employee
performance appraisal data such as appraisal ratings due date of appraisal
training needs identified during the appraisal process
1048698 Recruitment Record recruitment cost lead time to fill a vacant position
recruitment methods applicant and resume management
1048698 Career planning HRIS System can provide succession plan reports identifying
employees earmarked for future position
64
HRIS ndash DISADVANTAGES
May be expensive ndash financing the technology
1048698 Thorough understanding of what constitutes quality information for the user
1048698 Computer cannot substitute human beings
HUMAN RESOURCE DEVELOPMENT SYSTEM
66
HRD
HRD play a very crucial role in organization Henery Ford once said ldquotake out my building take out my machines take out all capital but leave my men with me and I will become Henry Ford againrdquo HRD is considered as key to higher productivity better relations and greater profitability for any organization
According to Daftur
ldquoHRD is a system and process concerned with an organized series of learning activities within specified time limits designed to produce behavioral changes in the learner in such a way that it acquires desired level of competence for present or future rolerdquo
67
HRDORGANIZATION ALIGNMENT MODEL
TRAINING AND DEVELOPMENT
69
NEED FOR TRAINING AND DEVELOPMENT
bull Technological advances bull Organizational complexity bull Organizational tenure bull Human relations movement
70
THE TRAINING PROCESS
71
Needs Assessment
72
bull Lecturesbull Audio Visualsbull On-the-job Training (OJT)bull Programmed Instructionbull Computer Assisted Instruction (CAI)bull Simulation
Methods and Techniques of Training
73
Training Methods for Management Development
1048698 Seminars and Conferences
1048698 Case Study
1048698 Role Playing
1048698 Management Games
1048698 Sensitivity Training
74
bull Implementation of the Training Program
bull Evaluation of Training Program
75
Kirkpatrick Model for Evaluating Effectiveness of Training Programs
1 Reactions
2 Learning
3 Behaviors
Results or Return on Investment (ROI)
76
SPECIAL TOPICS IN TRAINING ANDDEVELOPMENT
bull Cross-cultural Training
bull Orientation Training
bull Team-training and Cross-training
bull Diversity Training
COMPENSATION AND REWARDS
78
COMPENSATION OVERVIEW
Compensation is the process of directly and indirectly rewarding employees on a current or deferred basis for their performance of assigned tasks It consists of
1048698 Direct Financial Compensation Wages salaries bonuses commissions
1048698 Indirect Financial Compensation All financial rewards not included in direct compensation (benefits)
1048698 Non-financial Compensation Satisfaction received from the job or from the psychological andor physical environment of the job
JOB EVALUATION TECHNIQUE
The general step-wise procedure for job evaluation is as under
1 Select the group of jobs
2 Study the job (job analysis)
3 Prepare job description ndash approval
4 Device an evaluation plan ndash common characteristicstraits
5 Establish a committee of raters and rateevaluate
6 Group or classify the jobs
7 Convert job grades to money value along with Wage survey
8 Obtain approval from Union and Management
9 Establish a suitable grievance procedure
COMPONENTS OF COMPENSATION SYSTEM
1 Basic WagesSalaries
2 Dearness Allowance
3 Bonus
4 Commissions
5 Mixed Plans
6 Piece Rate Wages
7 Sign on Bonuses
8 Profit Sharing Payments
9 Fringe Benefits
COMPENSATION EQUITY
1048698 External Equity Employees are paid comparably to those who perform similar jobs in other industries
1048698 Internal Equity Employees are paid according to relative value of their jobs within an organisation
1048698 Employee Equity Individuals performing similar jobs for the same firm are rewarded according to factors unique to the employee such as performance level or seniority
1048698 Team Equity More productive teams receive greater rewards than less productive groups
INTERNATIONAL COMPENSATION
Elements of Expatriate Compensation
Basic Pay Amount of money that an expatriate receives from home country Used for
Bonus calculation
Benefits
1048698 One third of compensation
1048698 Extra vacation special leaves air fares for their families for an annual visit home
emergency leaves
1048698 Housing
1048698 Utilities ndash air conditioner bottled water electricity telephone call expenses
1048698 Car ndash car expenses chauffeur hired vehicle
Helping hands servants gardeners security
1048698 Club subscription
1048698 Educational benefits
Allowances
1048698 COLA ndash cost of living between home country and foreign country inflation
1048698 Relocation allowances
1048698 Hardship allowances
1048698 Separation allowances
1048698 Clothing allowances ndash very cold climates
1048698 Home leave allowances
1048698 Spouse assistance allowances
REWARDS SYSTEM
Reward System as Followed by Organisations
1 Incentive and Rewards
2 Competency Related Pay
3 Skill Based Pay
4 Team Based Rewards
5 Profit Sharing
7 Employee Ownership
8 Statutory and Voluntary Benefits
FORMS OF RECOGNITION
Examples of Formal Recognition
1 Milestone Service Anniversary Awards (5101520 25 years of service)
2 Ideas Improvement amp Performance Awards
3 Service Awards
a) Teamworkleadership
b) Customer Service
c) Citizenship
d) Innovation
e) Attendance
4 Awards would include
a) PlaquesDesk trophies
b) Certificates
c) GiftsCertificates
d) Picture in the webpage
FORMS OF RECOGNITION
Examples of Informal Recognition
1 Team Building Retreats
2 Acknowledgement of DeptDivision goals achieved
3 Project Completion meals
4 Birthday cakes and cards
5 Picnics
6 Staff Appreciation Day
7 Holiday Parties
8 Dress-up Days
9 Corporate Merchandise
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-
49
MENTORING - Kinds
1048698 New-hire mentorship
1048698 High-potential mentorship
1048698 Mentorship in Education
50
POTENTIAL APPRAISAL CAREER AND SUCCESSION
PLANNING
51
POTENTIAL APPRAISAL
Purpose of Potential Appraisal
Potential appraisal serves the following purposes
1048698 To advise employees about their overall career development and future prospects
1048698 Help the organisation to chalk out succession plans
1048698 Motivate the employees to further develop their skills and competencies
1048698 To identify the training needs
52
POTENTIAL APPRAISAL
Techniques of Potential Appraisal
1048698 Self-appraisals
1048698 Peer appraisals
1048698 Superior appraisals
1048698 MBO
1048698 Psychological and psychometric tests
1048698 Management games like role playing
1048698 Leadership exercises etc
53
CAREER PLANNING
Steps in Career Planning Process
Step One Self Assessment
Step Two Goal Setting
Step Three AcademicCareer Options
Step Four Plan of Action
Step Five Catch Hold of Opportunities
54
bull Succession Planning refers to the process of developing the second line for taking up a higher role in the organization
SUCCESSION PLANNING
55
HR MEASUREMENT AND AUDIT
bull Audit helps the organization have a clear understanding of the lacunae and better align the HR processes with Business goals
bull The audit itself is a diagnostic tool not a prescriptive instrument It helps in identifying what is missing or needs to improve It is most useful when an organization is ready to act on the findings and to evolve its HR function to play a greater strategic role
56
WHY CONDUCT AN HR AUDIT
1048698 It helps promote more professionalism and professional management
1048698 HR audit helps an organization to be aware of its present practices policies
and their adherence
1048698 Benchmarking to improve HR practices
1048698 The organization can benchmark its processes with best-in-class organizations
1048698 HR audit suggest improvement measures keeping the organizational strategic goals and vision in mind
57
THE HR AUDIT PROCESS
InterviewsQuestionnaires
The audit team interviews the following
1048698 Top Management (CEO Unit Heads)
1048698 Line Managers (eg Managers in production quality purchase and marketing)
1048698 HRD Staff
1048698 Workmen and others
Observation and Recording
Follow-up and Corrections done
58
HUMAN RESOURCE ACCOUNTING
bull The American Accounting Associationrsquos Committee on Human Resource Accounting (1973) has defined Human Resource Accounting as ldquothe process of identifying and measuring data about human resources and communicating this information to interested partiesrdquo
bull It is the measurement and reporting of the cost and value of people in organizational Resources
59
METHODS OF HUMAN RESOURCE ACCOUNTING
Methods of Valuing and Accounting of Human Resources
The methods to value and account for human resources can be classified into the following categories
1 Methods based on costs (which include costs incurred by the company to recruit hire train and develop human resources)
2 Methods based on economic value of human resources and the capitalisation of companyrsquos earnings
60
HUMAN RESOURCE ACCOUNTING
Methods based on Cost
Historical Cost Method
Under this method the cost of acquisition ie selection hiring training costs of employees are capitalised and written off over the expected useful life of the employees In case the personnel leave the company before the anticipated period of service then the unamortised portion of costs remaining in the companyrsquos books is written off against the profit and loss account in that year If the period of service exceeds the anticipated time then amortisation of costs is rescheduled
Replacement Cost Method
Under this method the human resources are valued at their replacement cost ie The monetary implications of replacing existing personnel
Standard Cost Method
Under this method standard costs of recruiting hiring training and developing per grade of employees are determined annually The total standard cost for all personnel of the company is the value of human resources
61
HUMAN RESOURCE ACCOUNTING
bull HR Accounting based on Value
bull Economic Value Method
bull Under this method the net present value of incremental cash flows attributed to human resources is taken as the asset value
62
HUMAN RESOURCE INFORMATION SYSTEMS(HRIS)
bull An information system may be automated or manual and involves collectingprocessing transmitting and disseminating data that represents user information
63
HRIS ndash APPLICATION AND UTILITIES
Personnel administration It will encompass information about each employee
such as name address personal details etc
1048698 Salary administration Generate personnel cost reports conduct lsquowhat if
analysisrsquo provide compensation history
1048698 Leave and absence recording Essentially being able to provide comprehensive
method of tracking absences late coming reports on excess leave availed leave
lapsed
1048698 Skill inventory Recording of acquired skills and monitor the skill database at the
employee and organisational level
1048698 Performance appraisal The system should record individual employee
performance appraisal data such as appraisal ratings due date of appraisal
training needs identified during the appraisal process
1048698 Recruitment Record recruitment cost lead time to fill a vacant position
recruitment methods applicant and resume management
1048698 Career planning HRIS System can provide succession plan reports identifying
employees earmarked for future position
64
HRIS ndash DISADVANTAGES
May be expensive ndash financing the technology
1048698 Thorough understanding of what constitutes quality information for the user
1048698 Computer cannot substitute human beings
HUMAN RESOURCE DEVELOPMENT SYSTEM
66
HRD
HRD play a very crucial role in organization Henery Ford once said ldquotake out my building take out my machines take out all capital but leave my men with me and I will become Henry Ford againrdquo HRD is considered as key to higher productivity better relations and greater profitability for any organization
According to Daftur
ldquoHRD is a system and process concerned with an organized series of learning activities within specified time limits designed to produce behavioral changes in the learner in such a way that it acquires desired level of competence for present or future rolerdquo
67
HRDORGANIZATION ALIGNMENT MODEL
TRAINING AND DEVELOPMENT
69
NEED FOR TRAINING AND DEVELOPMENT
bull Technological advances bull Organizational complexity bull Organizational tenure bull Human relations movement
70
THE TRAINING PROCESS
71
Needs Assessment
72
bull Lecturesbull Audio Visualsbull On-the-job Training (OJT)bull Programmed Instructionbull Computer Assisted Instruction (CAI)bull Simulation
Methods and Techniques of Training
73
Training Methods for Management Development
1048698 Seminars and Conferences
1048698 Case Study
1048698 Role Playing
1048698 Management Games
1048698 Sensitivity Training
74
bull Implementation of the Training Program
bull Evaluation of Training Program
75
Kirkpatrick Model for Evaluating Effectiveness of Training Programs
1 Reactions
2 Learning
3 Behaviors
Results or Return on Investment (ROI)
76
SPECIAL TOPICS IN TRAINING ANDDEVELOPMENT
bull Cross-cultural Training
bull Orientation Training
bull Team-training and Cross-training
bull Diversity Training
COMPENSATION AND REWARDS
78
COMPENSATION OVERVIEW
Compensation is the process of directly and indirectly rewarding employees on a current or deferred basis for their performance of assigned tasks It consists of
1048698 Direct Financial Compensation Wages salaries bonuses commissions
1048698 Indirect Financial Compensation All financial rewards not included in direct compensation (benefits)
1048698 Non-financial Compensation Satisfaction received from the job or from the psychological andor physical environment of the job
JOB EVALUATION TECHNIQUE
The general step-wise procedure for job evaluation is as under
1 Select the group of jobs
2 Study the job (job analysis)
3 Prepare job description ndash approval
4 Device an evaluation plan ndash common characteristicstraits
5 Establish a committee of raters and rateevaluate
6 Group or classify the jobs
7 Convert job grades to money value along with Wage survey
8 Obtain approval from Union and Management
9 Establish a suitable grievance procedure
COMPONENTS OF COMPENSATION SYSTEM
1 Basic WagesSalaries
2 Dearness Allowance
3 Bonus
4 Commissions
5 Mixed Plans
6 Piece Rate Wages
7 Sign on Bonuses
8 Profit Sharing Payments
9 Fringe Benefits
COMPENSATION EQUITY
1048698 External Equity Employees are paid comparably to those who perform similar jobs in other industries
1048698 Internal Equity Employees are paid according to relative value of their jobs within an organisation
1048698 Employee Equity Individuals performing similar jobs for the same firm are rewarded according to factors unique to the employee such as performance level or seniority
1048698 Team Equity More productive teams receive greater rewards than less productive groups
INTERNATIONAL COMPENSATION
Elements of Expatriate Compensation
Basic Pay Amount of money that an expatriate receives from home country Used for
Bonus calculation
Benefits
1048698 One third of compensation
1048698 Extra vacation special leaves air fares for their families for an annual visit home
emergency leaves
1048698 Housing
1048698 Utilities ndash air conditioner bottled water electricity telephone call expenses
1048698 Car ndash car expenses chauffeur hired vehicle
Helping hands servants gardeners security
1048698 Club subscription
1048698 Educational benefits
Allowances
1048698 COLA ndash cost of living between home country and foreign country inflation
1048698 Relocation allowances
1048698 Hardship allowances
1048698 Separation allowances
1048698 Clothing allowances ndash very cold climates
1048698 Home leave allowances
1048698 Spouse assistance allowances
REWARDS SYSTEM
Reward System as Followed by Organisations
1 Incentive and Rewards
2 Competency Related Pay
3 Skill Based Pay
4 Team Based Rewards
5 Profit Sharing
7 Employee Ownership
8 Statutory and Voluntary Benefits
FORMS OF RECOGNITION
Examples of Formal Recognition
1 Milestone Service Anniversary Awards (5101520 25 years of service)
2 Ideas Improvement amp Performance Awards
3 Service Awards
a) Teamworkleadership
b) Customer Service
c) Citizenship
d) Innovation
e) Attendance
4 Awards would include
a) PlaquesDesk trophies
b) Certificates
c) GiftsCertificates
d) Picture in the webpage
FORMS OF RECOGNITION
Examples of Informal Recognition
1 Team Building Retreats
2 Acknowledgement of DeptDivision goals achieved
3 Project Completion meals
4 Birthday cakes and cards
5 Picnics
6 Staff Appreciation Day
7 Holiday Parties
8 Dress-up Days
9 Corporate Merchandise
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-
50
POTENTIAL APPRAISAL CAREER AND SUCCESSION
PLANNING
51
POTENTIAL APPRAISAL
Purpose of Potential Appraisal
Potential appraisal serves the following purposes
1048698 To advise employees about their overall career development and future prospects
1048698 Help the organisation to chalk out succession plans
1048698 Motivate the employees to further develop their skills and competencies
1048698 To identify the training needs
52
POTENTIAL APPRAISAL
Techniques of Potential Appraisal
1048698 Self-appraisals
1048698 Peer appraisals
1048698 Superior appraisals
1048698 MBO
1048698 Psychological and psychometric tests
1048698 Management games like role playing
1048698 Leadership exercises etc
53
CAREER PLANNING
Steps in Career Planning Process
Step One Self Assessment
Step Two Goal Setting
Step Three AcademicCareer Options
Step Four Plan of Action
Step Five Catch Hold of Opportunities
54
bull Succession Planning refers to the process of developing the second line for taking up a higher role in the organization
SUCCESSION PLANNING
55
HR MEASUREMENT AND AUDIT
bull Audit helps the organization have a clear understanding of the lacunae and better align the HR processes with Business goals
bull The audit itself is a diagnostic tool not a prescriptive instrument It helps in identifying what is missing or needs to improve It is most useful when an organization is ready to act on the findings and to evolve its HR function to play a greater strategic role
56
WHY CONDUCT AN HR AUDIT
1048698 It helps promote more professionalism and professional management
1048698 HR audit helps an organization to be aware of its present practices policies
and their adherence
1048698 Benchmarking to improve HR practices
1048698 The organization can benchmark its processes with best-in-class organizations
1048698 HR audit suggest improvement measures keeping the organizational strategic goals and vision in mind
57
THE HR AUDIT PROCESS
InterviewsQuestionnaires
The audit team interviews the following
1048698 Top Management (CEO Unit Heads)
1048698 Line Managers (eg Managers in production quality purchase and marketing)
1048698 HRD Staff
1048698 Workmen and others
Observation and Recording
Follow-up and Corrections done
58
HUMAN RESOURCE ACCOUNTING
bull The American Accounting Associationrsquos Committee on Human Resource Accounting (1973) has defined Human Resource Accounting as ldquothe process of identifying and measuring data about human resources and communicating this information to interested partiesrdquo
bull It is the measurement and reporting of the cost and value of people in organizational Resources
59
METHODS OF HUMAN RESOURCE ACCOUNTING
Methods of Valuing and Accounting of Human Resources
The methods to value and account for human resources can be classified into the following categories
1 Methods based on costs (which include costs incurred by the company to recruit hire train and develop human resources)
2 Methods based on economic value of human resources and the capitalisation of companyrsquos earnings
60
HUMAN RESOURCE ACCOUNTING
Methods based on Cost
Historical Cost Method
Under this method the cost of acquisition ie selection hiring training costs of employees are capitalised and written off over the expected useful life of the employees In case the personnel leave the company before the anticipated period of service then the unamortised portion of costs remaining in the companyrsquos books is written off against the profit and loss account in that year If the period of service exceeds the anticipated time then amortisation of costs is rescheduled
Replacement Cost Method
Under this method the human resources are valued at their replacement cost ie The monetary implications of replacing existing personnel
Standard Cost Method
Under this method standard costs of recruiting hiring training and developing per grade of employees are determined annually The total standard cost for all personnel of the company is the value of human resources
61
HUMAN RESOURCE ACCOUNTING
bull HR Accounting based on Value
bull Economic Value Method
bull Under this method the net present value of incremental cash flows attributed to human resources is taken as the asset value
62
HUMAN RESOURCE INFORMATION SYSTEMS(HRIS)
bull An information system may be automated or manual and involves collectingprocessing transmitting and disseminating data that represents user information
63
HRIS ndash APPLICATION AND UTILITIES
Personnel administration It will encompass information about each employee
such as name address personal details etc
1048698 Salary administration Generate personnel cost reports conduct lsquowhat if
analysisrsquo provide compensation history
1048698 Leave and absence recording Essentially being able to provide comprehensive
method of tracking absences late coming reports on excess leave availed leave
lapsed
1048698 Skill inventory Recording of acquired skills and monitor the skill database at the
employee and organisational level
1048698 Performance appraisal The system should record individual employee
performance appraisal data such as appraisal ratings due date of appraisal
training needs identified during the appraisal process
1048698 Recruitment Record recruitment cost lead time to fill a vacant position
recruitment methods applicant and resume management
1048698 Career planning HRIS System can provide succession plan reports identifying
employees earmarked for future position
64
HRIS ndash DISADVANTAGES
May be expensive ndash financing the technology
1048698 Thorough understanding of what constitutes quality information for the user
1048698 Computer cannot substitute human beings
HUMAN RESOURCE DEVELOPMENT SYSTEM
66
HRD
HRD play a very crucial role in organization Henery Ford once said ldquotake out my building take out my machines take out all capital but leave my men with me and I will become Henry Ford againrdquo HRD is considered as key to higher productivity better relations and greater profitability for any organization
According to Daftur
ldquoHRD is a system and process concerned with an organized series of learning activities within specified time limits designed to produce behavioral changes in the learner in such a way that it acquires desired level of competence for present or future rolerdquo
67
HRDORGANIZATION ALIGNMENT MODEL
TRAINING AND DEVELOPMENT
69
NEED FOR TRAINING AND DEVELOPMENT
bull Technological advances bull Organizational complexity bull Organizational tenure bull Human relations movement
70
THE TRAINING PROCESS
71
Needs Assessment
72
bull Lecturesbull Audio Visualsbull On-the-job Training (OJT)bull Programmed Instructionbull Computer Assisted Instruction (CAI)bull Simulation
Methods and Techniques of Training
73
Training Methods for Management Development
1048698 Seminars and Conferences
1048698 Case Study
1048698 Role Playing
1048698 Management Games
1048698 Sensitivity Training
74
bull Implementation of the Training Program
bull Evaluation of Training Program
75
Kirkpatrick Model for Evaluating Effectiveness of Training Programs
1 Reactions
2 Learning
3 Behaviors
Results or Return on Investment (ROI)
76
SPECIAL TOPICS IN TRAINING ANDDEVELOPMENT
bull Cross-cultural Training
bull Orientation Training
bull Team-training and Cross-training
bull Diversity Training
COMPENSATION AND REWARDS
78
COMPENSATION OVERVIEW
Compensation is the process of directly and indirectly rewarding employees on a current or deferred basis for their performance of assigned tasks It consists of
1048698 Direct Financial Compensation Wages salaries bonuses commissions
1048698 Indirect Financial Compensation All financial rewards not included in direct compensation (benefits)
1048698 Non-financial Compensation Satisfaction received from the job or from the psychological andor physical environment of the job
JOB EVALUATION TECHNIQUE
The general step-wise procedure for job evaluation is as under
1 Select the group of jobs
2 Study the job (job analysis)
3 Prepare job description ndash approval
4 Device an evaluation plan ndash common characteristicstraits
5 Establish a committee of raters and rateevaluate
6 Group or classify the jobs
7 Convert job grades to money value along with Wage survey
8 Obtain approval from Union and Management
9 Establish a suitable grievance procedure
COMPONENTS OF COMPENSATION SYSTEM
1 Basic WagesSalaries
2 Dearness Allowance
3 Bonus
4 Commissions
5 Mixed Plans
6 Piece Rate Wages
7 Sign on Bonuses
8 Profit Sharing Payments
9 Fringe Benefits
COMPENSATION EQUITY
1048698 External Equity Employees are paid comparably to those who perform similar jobs in other industries
1048698 Internal Equity Employees are paid according to relative value of their jobs within an organisation
1048698 Employee Equity Individuals performing similar jobs for the same firm are rewarded according to factors unique to the employee such as performance level or seniority
1048698 Team Equity More productive teams receive greater rewards than less productive groups
INTERNATIONAL COMPENSATION
Elements of Expatriate Compensation
Basic Pay Amount of money that an expatriate receives from home country Used for
Bonus calculation
Benefits
1048698 One third of compensation
1048698 Extra vacation special leaves air fares for their families for an annual visit home
emergency leaves
1048698 Housing
1048698 Utilities ndash air conditioner bottled water electricity telephone call expenses
1048698 Car ndash car expenses chauffeur hired vehicle
Helping hands servants gardeners security
1048698 Club subscription
1048698 Educational benefits
Allowances
1048698 COLA ndash cost of living between home country and foreign country inflation
1048698 Relocation allowances
1048698 Hardship allowances
1048698 Separation allowances
1048698 Clothing allowances ndash very cold climates
1048698 Home leave allowances
1048698 Spouse assistance allowances
REWARDS SYSTEM
Reward System as Followed by Organisations
1 Incentive and Rewards
2 Competency Related Pay
3 Skill Based Pay
4 Team Based Rewards
5 Profit Sharing
7 Employee Ownership
8 Statutory and Voluntary Benefits
FORMS OF RECOGNITION
Examples of Formal Recognition
1 Milestone Service Anniversary Awards (5101520 25 years of service)
2 Ideas Improvement amp Performance Awards
3 Service Awards
a) Teamworkleadership
b) Customer Service
c) Citizenship
d) Innovation
e) Attendance
4 Awards would include
a) PlaquesDesk trophies
b) Certificates
c) GiftsCertificates
d) Picture in the webpage
FORMS OF RECOGNITION
Examples of Informal Recognition
1 Team Building Retreats
2 Acknowledgement of DeptDivision goals achieved
3 Project Completion meals
4 Birthday cakes and cards
5 Picnics
6 Staff Appreciation Day
7 Holiday Parties
8 Dress-up Days
9 Corporate Merchandise
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-
51
POTENTIAL APPRAISAL
Purpose of Potential Appraisal
Potential appraisal serves the following purposes
1048698 To advise employees about their overall career development and future prospects
1048698 Help the organisation to chalk out succession plans
1048698 Motivate the employees to further develop their skills and competencies
1048698 To identify the training needs
52
POTENTIAL APPRAISAL
Techniques of Potential Appraisal
1048698 Self-appraisals
1048698 Peer appraisals
1048698 Superior appraisals
1048698 MBO
1048698 Psychological and psychometric tests
1048698 Management games like role playing
1048698 Leadership exercises etc
53
CAREER PLANNING
Steps in Career Planning Process
Step One Self Assessment
Step Two Goal Setting
Step Three AcademicCareer Options
Step Four Plan of Action
Step Five Catch Hold of Opportunities
54
bull Succession Planning refers to the process of developing the second line for taking up a higher role in the organization
SUCCESSION PLANNING
55
HR MEASUREMENT AND AUDIT
bull Audit helps the organization have a clear understanding of the lacunae and better align the HR processes with Business goals
bull The audit itself is a diagnostic tool not a prescriptive instrument It helps in identifying what is missing or needs to improve It is most useful when an organization is ready to act on the findings and to evolve its HR function to play a greater strategic role
56
WHY CONDUCT AN HR AUDIT
1048698 It helps promote more professionalism and professional management
1048698 HR audit helps an organization to be aware of its present practices policies
and their adherence
1048698 Benchmarking to improve HR practices
1048698 The organization can benchmark its processes with best-in-class organizations
1048698 HR audit suggest improvement measures keeping the organizational strategic goals and vision in mind
57
THE HR AUDIT PROCESS
InterviewsQuestionnaires
The audit team interviews the following
1048698 Top Management (CEO Unit Heads)
1048698 Line Managers (eg Managers in production quality purchase and marketing)
1048698 HRD Staff
1048698 Workmen and others
Observation and Recording
Follow-up and Corrections done
58
HUMAN RESOURCE ACCOUNTING
bull The American Accounting Associationrsquos Committee on Human Resource Accounting (1973) has defined Human Resource Accounting as ldquothe process of identifying and measuring data about human resources and communicating this information to interested partiesrdquo
bull It is the measurement and reporting of the cost and value of people in organizational Resources
59
METHODS OF HUMAN RESOURCE ACCOUNTING
Methods of Valuing and Accounting of Human Resources
The methods to value and account for human resources can be classified into the following categories
1 Methods based on costs (which include costs incurred by the company to recruit hire train and develop human resources)
2 Methods based on economic value of human resources and the capitalisation of companyrsquos earnings
60
HUMAN RESOURCE ACCOUNTING
Methods based on Cost
Historical Cost Method
Under this method the cost of acquisition ie selection hiring training costs of employees are capitalised and written off over the expected useful life of the employees In case the personnel leave the company before the anticipated period of service then the unamortised portion of costs remaining in the companyrsquos books is written off against the profit and loss account in that year If the period of service exceeds the anticipated time then amortisation of costs is rescheduled
Replacement Cost Method
Under this method the human resources are valued at their replacement cost ie The monetary implications of replacing existing personnel
Standard Cost Method
Under this method standard costs of recruiting hiring training and developing per grade of employees are determined annually The total standard cost for all personnel of the company is the value of human resources
61
HUMAN RESOURCE ACCOUNTING
bull HR Accounting based on Value
bull Economic Value Method
bull Under this method the net present value of incremental cash flows attributed to human resources is taken as the asset value
62
HUMAN RESOURCE INFORMATION SYSTEMS(HRIS)
bull An information system may be automated or manual and involves collectingprocessing transmitting and disseminating data that represents user information
63
HRIS ndash APPLICATION AND UTILITIES
Personnel administration It will encompass information about each employee
such as name address personal details etc
1048698 Salary administration Generate personnel cost reports conduct lsquowhat if
analysisrsquo provide compensation history
1048698 Leave and absence recording Essentially being able to provide comprehensive
method of tracking absences late coming reports on excess leave availed leave
lapsed
1048698 Skill inventory Recording of acquired skills and monitor the skill database at the
employee and organisational level
1048698 Performance appraisal The system should record individual employee
performance appraisal data such as appraisal ratings due date of appraisal
training needs identified during the appraisal process
1048698 Recruitment Record recruitment cost lead time to fill a vacant position
recruitment methods applicant and resume management
1048698 Career planning HRIS System can provide succession plan reports identifying
employees earmarked for future position
64
HRIS ndash DISADVANTAGES
May be expensive ndash financing the technology
1048698 Thorough understanding of what constitutes quality information for the user
1048698 Computer cannot substitute human beings
HUMAN RESOURCE DEVELOPMENT SYSTEM
66
HRD
HRD play a very crucial role in organization Henery Ford once said ldquotake out my building take out my machines take out all capital but leave my men with me and I will become Henry Ford againrdquo HRD is considered as key to higher productivity better relations and greater profitability for any organization
According to Daftur
ldquoHRD is a system and process concerned with an organized series of learning activities within specified time limits designed to produce behavioral changes in the learner in such a way that it acquires desired level of competence for present or future rolerdquo
67
HRDORGANIZATION ALIGNMENT MODEL
TRAINING AND DEVELOPMENT
69
NEED FOR TRAINING AND DEVELOPMENT
bull Technological advances bull Organizational complexity bull Organizational tenure bull Human relations movement
70
THE TRAINING PROCESS
71
Needs Assessment
72
bull Lecturesbull Audio Visualsbull On-the-job Training (OJT)bull Programmed Instructionbull Computer Assisted Instruction (CAI)bull Simulation
Methods and Techniques of Training
73
Training Methods for Management Development
1048698 Seminars and Conferences
1048698 Case Study
1048698 Role Playing
1048698 Management Games
1048698 Sensitivity Training
74
bull Implementation of the Training Program
bull Evaluation of Training Program
75
Kirkpatrick Model for Evaluating Effectiveness of Training Programs
1 Reactions
2 Learning
3 Behaviors
Results or Return on Investment (ROI)
76
SPECIAL TOPICS IN TRAINING ANDDEVELOPMENT
bull Cross-cultural Training
bull Orientation Training
bull Team-training and Cross-training
bull Diversity Training
COMPENSATION AND REWARDS
78
COMPENSATION OVERVIEW
Compensation is the process of directly and indirectly rewarding employees on a current or deferred basis for their performance of assigned tasks It consists of
1048698 Direct Financial Compensation Wages salaries bonuses commissions
1048698 Indirect Financial Compensation All financial rewards not included in direct compensation (benefits)
1048698 Non-financial Compensation Satisfaction received from the job or from the psychological andor physical environment of the job
JOB EVALUATION TECHNIQUE
The general step-wise procedure for job evaluation is as under
1 Select the group of jobs
2 Study the job (job analysis)
3 Prepare job description ndash approval
4 Device an evaluation plan ndash common characteristicstraits
5 Establish a committee of raters and rateevaluate
6 Group or classify the jobs
7 Convert job grades to money value along with Wage survey
8 Obtain approval from Union and Management
9 Establish a suitable grievance procedure
COMPONENTS OF COMPENSATION SYSTEM
1 Basic WagesSalaries
2 Dearness Allowance
3 Bonus
4 Commissions
5 Mixed Plans
6 Piece Rate Wages
7 Sign on Bonuses
8 Profit Sharing Payments
9 Fringe Benefits
COMPENSATION EQUITY
1048698 External Equity Employees are paid comparably to those who perform similar jobs in other industries
1048698 Internal Equity Employees are paid according to relative value of their jobs within an organisation
1048698 Employee Equity Individuals performing similar jobs for the same firm are rewarded according to factors unique to the employee such as performance level or seniority
1048698 Team Equity More productive teams receive greater rewards than less productive groups
INTERNATIONAL COMPENSATION
Elements of Expatriate Compensation
Basic Pay Amount of money that an expatriate receives from home country Used for
Bonus calculation
Benefits
1048698 One third of compensation
1048698 Extra vacation special leaves air fares for their families for an annual visit home
emergency leaves
1048698 Housing
1048698 Utilities ndash air conditioner bottled water electricity telephone call expenses
1048698 Car ndash car expenses chauffeur hired vehicle
Helping hands servants gardeners security
1048698 Club subscription
1048698 Educational benefits
Allowances
1048698 COLA ndash cost of living between home country and foreign country inflation
1048698 Relocation allowances
1048698 Hardship allowances
1048698 Separation allowances
1048698 Clothing allowances ndash very cold climates
1048698 Home leave allowances
1048698 Spouse assistance allowances
REWARDS SYSTEM
Reward System as Followed by Organisations
1 Incentive and Rewards
2 Competency Related Pay
3 Skill Based Pay
4 Team Based Rewards
5 Profit Sharing
7 Employee Ownership
8 Statutory and Voluntary Benefits
FORMS OF RECOGNITION
Examples of Formal Recognition
1 Milestone Service Anniversary Awards (5101520 25 years of service)
2 Ideas Improvement amp Performance Awards
3 Service Awards
a) Teamworkleadership
b) Customer Service
c) Citizenship
d) Innovation
e) Attendance
4 Awards would include
a) PlaquesDesk trophies
b) Certificates
c) GiftsCertificates
d) Picture in the webpage
FORMS OF RECOGNITION
Examples of Informal Recognition
1 Team Building Retreats
2 Acknowledgement of DeptDivision goals achieved
3 Project Completion meals
4 Birthday cakes and cards
5 Picnics
6 Staff Appreciation Day
7 Holiday Parties
8 Dress-up Days
9 Corporate Merchandise
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-
52
POTENTIAL APPRAISAL
Techniques of Potential Appraisal
1048698 Self-appraisals
1048698 Peer appraisals
1048698 Superior appraisals
1048698 MBO
1048698 Psychological and psychometric tests
1048698 Management games like role playing
1048698 Leadership exercises etc
53
CAREER PLANNING
Steps in Career Planning Process
Step One Self Assessment
Step Two Goal Setting
Step Three AcademicCareer Options
Step Four Plan of Action
Step Five Catch Hold of Opportunities
54
bull Succession Planning refers to the process of developing the second line for taking up a higher role in the organization
SUCCESSION PLANNING
55
HR MEASUREMENT AND AUDIT
bull Audit helps the organization have a clear understanding of the lacunae and better align the HR processes with Business goals
bull The audit itself is a diagnostic tool not a prescriptive instrument It helps in identifying what is missing or needs to improve It is most useful when an organization is ready to act on the findings and to evolve its HR function to play a greater strategic role
56
WHY CONDUCT AN HR AUDIT
1048698 It helps promote more professionalism and professional management
1048698 HR audit helps an organization to be aware of its present practices policies
and their adherence
1048698 Benchmarking to improve HR practices
1048698 The organization can benchmark its processes with best-in-class organizations
1048698 HR audit suggest improvement measures keeping the organizational strategic goals and vision in mind
57
THE HR AUDIT PROCESS
InterviewsQuestionnaires
The audit team interviews the following
1048698 Top Management (CEO Unit Heads)
1048698 Line Managers (eg Managers in production quality purchase and marketing)
1048698 HRD Staff
1048698 Workmen and others
Observation and Recording
Follow-up and Corrections done
58
HUMAN RESOURCE ACCOUNTING
bull The American Accounting Associationrsquos Committee on Human Resource Accounting (1973) has defined Human Resource Accounting as ldquothe process of identifying and measuring data about human resources and communicating this information to interested partiesrdquo
bull It is the measurement and reporting of the cost and value of people in organizational Resources
59
METHODS OF HUMAN RESOURCE ACCOUNTING
Methods of Valuing and Accounting of Human Resources
The methods to value and account for human resources can be classified into the following categories
1 Methods based on costs (which include costs incurred by the company to recruit hire train and develop human resources)
2 Methods based on economic value of human resources and the capitalisation of companyrsquos earnings
60
HUMAN RESOURCE ACCOUNTING
Methods based on Cost
Historical Cost Method
Under this method the cost of acquisition ie selection hiring training costs of employees are capitalised and written off over the expected useful life of the employees In case the personnel leave the company before the anticipated period of service then the unamortised portion of costs remaining in the companyrsquos books is written off against the profit and loss account in that year If the period of service exceeds the anticipated time then amortisation of costs is rescheduled
Replacement Cost Method
Under this method the human resources are valued at their replacement cost ie The monetary implications of replacing existing personnel
Standard Cost Method
Under this method standard costs of recruiting hiring training and developing per grade of employees are determined annually The total standard cost for all personnel of the company is the value of human resources
61
HUMAN RESOURCE ACCOUNTING
bull HR Accounting based on Value
bull Economic Value Method
bull Under this method the net present value of incremental cash flows attributed to human resources is taken as the asset value
62
HUMAN RESOURCE INFORMATION SYSTEMS(HRIS)
bull An information system may be automated or manual and involves collectingprocessing transmitting and disseminating data that represents user information
63
HRIS ndash APPLICATION AND UTILITIES
Personnel administration It will encompass information about each employee
such as name address personal details etc
1048698 Salary administration Generate personnel cost reports conduct lsquowhat if
analysisrsquo provide compensation history
1048698 Leave and absence recording Essentially being able to provide comprehensive
method of tracking absences late coming reports on excess leave availed leave
lapsed
1048698 Skill inventory Recording of acquired skills and monitor the skill database at the
employee and organisational level
1048698 Performance appraisal The system should record individual employee
performance appraisal data such as appraisal ratings due date of appraisal
training needs identified during the appraisal process
1048698 Recruitment Record recruitment cost lead time to fill a vacant position
recruitment methods applicant and resume management
1048698 Career planning HRIS System can provide succession plan reports identifying
employees earmarked for future position
64
HRIS ndash DISADVANTAGES
May be expensive ndash financing the technology
1048698 Thorough understanding of what constitutes quality information for the user
1048698 Computer cannot substitute human beings
HUMAN RESOURCE DEVELOPMENT SYSTEM
66
HRD
HRD play a very crucial role in organization Henery Ford once said ldquotake out my building take out my machines take out all capital but leave my men with me and I will become Henry Ford againrdquo HRD is considered as key to higher productivity better relations and greater profitability for any organization
According to Daftur
ldquoHRD is a system and process concerned with an organized series of learning activities within specified time limits designed to produce behavioral changes in the learner in such a way that it acquires desired level of competence for present or future rolerdquo
67
HRDORGANIZATION ALIGNMENT MODEL
TRAINING AND DEVELOPMENT
69
NEED FOR TRAINING AND DEVELOPMENT
bull Technological advances bull Organizational complexity bull Organizational tenure bull Human relations movement
70
THE TRAINING PROCESS
71
Needs Assessment
72
bull Lecturesbull Audio Visualsbull On-the-job Training (OJT)bull Programmed Instructionbull Computer Assisted Instruction (CAI)bull Simulation
Methods and Techniques of Training
73
Training Methods for Management Development
1048698 Seminars and Conferences
1048698 Case Study
1048698 Role Playing
1048698 Management Games
1048698 Sensitivity Training
74
bull Implementation of the Training Program
bull Evaluation of Training Program
75
Kirkpatrick Model for Evaluating Effectiveness of Training Programs
1 Reactions
2 Learning
3 Behaviors
Results or Return on Investment (ROI)
76
SPECIAL TOPICS IN TRAINING ANDDEVELOPMENT
bull Cross-cultural Training
bull Orientation Training
bull Team-training and Cross-training
bull Diversity Training
COMPENSATION AND REWARDS
78
COMPENSATION OVERVIEW
Compensation is the process of directly and indirectly rewarding employees on a current or deferred basis for their performance of assigned tasks It consists of
1048698 Direct Financial Compensation Wages salaries bonuses commissions
1048698 Indirect Financial Compensation All financial rewards not included in direct compensation (benefits)
1048698 Non-financial Compensation Satisfaction received from the job or from the psychological andor physical environment of the job
JOB EVALUATION TECHNIQUE
The general step-wise procedure for job evaluation is as under
1 Select the group of jobs
2 Study the job (job analysis)
3 Prepare job description ndash approval
4 Device an evaluation plan ndash common characteristicstraits
5 Establish a committee of raters and rateevaluate
6 Group or classify the jobs
7 Convert job grades to money value along with Wage survey
8 Obtain approval from Union and Management
9 Establish a suitable grievance procedure
COMPONENTS OF COMPENSATION SYSTEM
1 Basic WagesSalaries
2 Dearness Allowance
3 Bonus
4 Commissions
5 Mixed Plans
6 Piece Rate Wages
7 Sign on Bonuses
8 Profit Sharing Payments
9 Fringe Benefits
COMPENSATION EQUITY
1048698 External Equity Employees are paid comparably to those who perform similar jobs in other industries
1048698 Internal Equity Employees are paid according to relative value of their jobs within an organisation
1048698 Employee Equity Individuals performing similar jobs for the same firm are rewarded according to factors unique to the employee such as performance level or seniority
1048698 Team Equity More productive teams receive greater rewards than less productive groups
INTERNATIONAL COMPENSATION
Elements of Expatriate Compensation
Basic Pay Amount of money that an expatriate receives from home country Used for
Bonus calculation
Benefits
1048698 One third of compensation
1048698 Extra vacation special leaves air fares for their families for an annual visit home
emergency leaves
1048698 Housing
1048698 Utilities ndash air conditioner bottled water electricity telephone call expenses
1048698 Car ndash car expenses chauffeur hired vehicle
Helping hands servants gardeners security
1048698 Club subscription
1048698 Educational benefits
Allowances
1048698 COLA ndash cost of living between home country and foreign country inflation
1048698 Relocation allowances
1048698 Hardship allowances
1048698 Separation allowances
1048698 Clothing allowances ndash very cold climates
1048698 Home leave allowances
1048698 Spouse assistance allowances
REWARDS SYSTEM
Reward System as Followed by Organisations
1 Incentive and Rewards
2 Competency Related Pay
3 Skill Based Pay
4 Team Based Rewards
5 Profit Sharing
7 Employee Ownership
8 Statutory and Voluntary Benefits
FORMS OF RECOGNITION
Examples of Formal Recognition
1 Milestone Service Anniversary Awards (5101520 25 years of service)
2 Ideas Improvement amp Performance Awards
3 Service Awards
a) Teamworkleadership
b) Customer Service
c) Citizenship
d) Innovation
e) Attendance
4 Awards would include
a) PlaquesDesk trophies
b) Certificates
c) GiftsCertificates
d) Picture in the webpage
FORMS OF RECOGNITION
Examples of Informal Recognition
1 Team Building Retreats
2 Acknowledgement of DeptDivision goals achieved
3 Project Completion meals
4 Birthday cakes and cards
5 Picnics
6 Staff Appreciation Day
7 Holiday Parties
8 Dress-up Days
9 Corporate Merchandise
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-
53
CAREER PLANNING
Steps in Career Planning Process
Step One Self Assessment
Step Two Goal Setting
Step Three AcademicCareer Options
Step Four Plan of Action
Step Five Catch Hold of Opportunities
54
bull Succession Planning refers to the process of developing the second line for taking up a higher role in the organization
SUCCESSION PLANNING
55
HR MEASUREMENT AND AUDIT
bull Audit helps the organization have a clear understanding of the lacunae and better align the HR processes with Business goals
bull The audit itself is a diagnostic tool not a prescriptive instrument It helps in identifying what is missing or needs to improve It is most useful when an organization is ready to act on the findings and to evolve its HR function to play a greater strategic role
56
WHY CONDUCT AN HR AUDIT
1048698 It helps promote more professionalism and professional management
1048698 HR audit helps an organization to be aware of its present practices policies
and their adherence
1048698 Benchmarking to improve HR practices
1048698 The organization can benchmark its processes with best-in-class organizations
1048698 HR audit suggest improvement measures keeping the organizational strategic goals and vision in mind
57
THE HR AUDIT PROCESS
InterviewsQuestionnaires
The audit team interviews the following
1048698 Top Management (CEO Unit Heads)
1048698 Line Managers (eg Managers in production quality purchase and marketing)
1048698 HRD Staff
1048698 Workmen and others
Observation and Recording
Follow-up and Corrections done
58
HUMAN RESOURCE ACCOUNTING
bull The American Accounting Associationrsquos Committee on Human Resource Accounting (1973) has defined Human Resource Accounting as ldquothe process of identifying and measuring data about human resources and communicating this information to interested partiesrdquo
bull It is the measurement and reporting of the cost and value of people in organizational Resources
59
METHODS OF HUMAN RESOURCE ACCOUNTING
Methods of Valuing and Accounting of Human Resources
The methods to value and account for human resources can be classified into the following categories
1 Methods based on costs (which include costs incurred by the company to recruit hire train and develop human resources)
2 Methods based on economic value of human resources and the capitalisation of companyrsquos earnings
60
HUMAN RESOURCE ACCOUNTING
Methods based on Cost
Historical Cost Method
Under this method the cost of acquisition ie selection hiring training costs of employees are capitalised and written off over the expected useful life of the employees In case the personnel leave the company before the anticipated period of service then the unamortised portion of costs remaining in the companyrsquos books is written off against the profit and loss account in that year If the period of service exceeds the anticipated time then amortisation of costs is rescheduled
Replacement Cost Method
Under this method the human resources are valued at their replacement cost ie The monetary implications of replacing existing personnel
Standard Cost Method
Under this method standard costs of recruiting hiring training and developing per grade of employees are determined annually The total standard cost for all personnel of the company is the value of human resources
61
HUMAN RESOURCE ACCOUNTING
bull HR Accounting based on Value
bull Economic Value Method
bull Under this method the net present value of incremental cash flows attributed to human resources is taken as the asset value
62
HUMAN RESOURCE INFORMATION SYSTEMS(HRIS)
bull An information system may be automated or manual and involves collectingprocessing transmitting and disseminating data that represents user information
63
HRIS ndash APPLICATION AND UTILITIES
Personnel administration It will encompass information about each employee
such as name address personal details etc
1048698 Salary administration Generate personnel cost reports conduct lsquowhat if
analysisrsquo provide compensation history
1048698 Leave and absence recording Essentially being able to provide comprehensive
method of tracking absences late coming reports on excess leave availed leave
lapsed
1048698 Skill inventory Recording of acquired skills and monitor the skill database at the
employee and organisational level
1048698 Performance appraisal The system should record individual employee
performance appraisal data such as appraisal ratings due date of appraisal
training needs identified during the appraisal process
1048698 Recruitment Record recruitment cost lead time to fill a vacant position
recruitment methods applicant and resume management
1048698 Career planning HRIS System can provide succession plan reports identifying
employees earmarked for future position
64
HRIS ndash DISADVANTAGES
May be expensive ndash financing the technology
1048698 Thorough understanding of what constitutes quality information for the user
1048698 Computer cannot substitute human beings
HUMAN RESOURCE DEVELOPMENT SYSTEM
66
HRD
HRD play a very crucial role in organization Henery Ford once said ldquotake out my building take out my machines take out all capital but leave my men with me and I will become Henry Ford againrdquo HRD is considered as key to higher productivity better relations and greater profitability for any organization
According to Daftur
ldquoHRD is a system and process concerned with an organized series of learning activities within specified time limits designed to produce behavioral changes in the learner in such a way that it acquires desired level of competence for present or future rolerdquo
67
HRDORGANIZATION ALIGNMENT MODEL
TRAINING AND DEVELOPMENT
69
NEED FOR TRAINING AND DEVELOPMENT
bull Technological advances bull Organizational complexity bull Organizational tenure bull Human relations movement
70
THE TRAINING PROCESS
71
Needs Assessment
72
bull Lecturesbull Audio Visualsbull On-the-job Training (OJT)bull Programmed Instructionbull Computer Assisted Instruction (CAI)bull Simulation
Methods and Techniques of Training
73
Training Methods for Management Development
1048698 Seminars and Conferences
1048698 Case Study
1048698 Role Playing
1048698 Management Games
1048698 Sensitivity Training
74
bull Implementation of the Training Program
bull Evaluation of Training Program
75
Kirkpatrick Model for Evaluating Effectiveness of Training Programs
1 Reactions
2 Learning
3 Behaviors
Results or Return on Investment (ROI)
76
SPECIAL TOPICS IN TRAINING ANDDEVELOPMENT
bull Cross-cultural Training
bull Orientation Training
bull Team-training and Cross-training
bull Diversity Training
COMPENSATION AND REWARDS
78
COMPENSATION OVERVIEW
Compensation is the process of directly and indirectly rewarding employees on a current or deferred basis for their performance of assigned tasks It consists of
1048698 Direct Financial Compensation Wages salaries bonuses commissions
1048698 Indirect Financial Compensation All financial rewards not included in direct compensation (benefits)
1048698 Non-financial Compensation Satisfaction received from the job or from the psychological andor physical environment of the job
JOB EVALUATION TECHNIQUE
The general step-wise procedure for job evaluation is as under
1 Select the group of jobs
2 Study the job (job analysis)
3 Prepare job description ndash approval
4 Device an evaluation plan ndash common characteristicstraits
5 Establish a committee of raters and rateevaluate
6 Group or classify the jobs
7 Convert job grades to money value along with Wage survey
8 Obtain approval from Union and Management
9 Establish a suitable grievance procedure
COMPONENTS OF COMPENSATION SYSTEM
1 Basic WagesSalaries
2 Dearness Allowance
3 Bonus
4 Commissions
5 Mixed Plans
6 Piece Rate Wages
7 Sign on Bonuses
8 Profit Sharing Payments
9 Fringe Benefits
COMPENSATION EQUITY
1048698 External Equity Employees are paid comparably to those who perform similar jobs in other industries
1048698 Internal Equity Employees are paid according to relative value of their jobs within an organisation
1048698 Employee Equity Individuals performing similar jobs for the same firm are rewarded according to factors unique to the employee such as performance level or seniority
1048698 Team Equity More productive teams receive greater rewards than less productive groups
INTERNATIONAL COMPENSATION
Elements of Expatriate Compensation
Basic Pay Amount of money that an expatriate receives from home country Used for
Bonus calculation
Benefits
1048698 One third of compensation
1048698 Extra vacation special leaves air fares for their families for an annual visit home
emergency leaves
1048698 Housing
1048698 Utilities ndash air conditioner bottled water electricity telephone call expenses
1048698 Car ndash car expenses chauffeur hired vehicle
Helping hands servants gardeners security
1048698 Club subscription
1048698 Educational benefits
Allowances
1048698 COLA ndash cost of living between home country and foreign country inflation
1048698 Relocation allowances
1048698 Hardship allowances
1048698 Separation allowances
1048698 Clothing allowances ndash very cold climates
1048698 Home leave allowances
1048698 Spouse assistance allowances
REWARDS SYSTEM
Reward System as Followed by Organisations
1 Incentive and Rewards
2 Competency Related Pay
3 Skill Based Pay
4 Team Based Rewards
5 Profit Sharing
7 Employee Ownership
8 Statutory and Voluntary Benefits
FORMS OF RECOGNITION
Examples of Formal Recognition
1 Milestone Service Anniversary Awards (5101520 25 years of service)
2 Ideas Improvement amp Performance Awards
3 Service Awards
a) Teamworkleadership
b) Customer Service
c) Citizenship
d) Innovation
e) Attendance
4 Awards would include
a) PlaquesDesk trophies
b) Certificates
c) GiftsCertificates
d) Picture in the webpage
FORMS OF RECOGNITION
Examples of Informal Recognition
1 Team Building Retreats
2 Acknowledgement of DeptDivision goals achieved
3 Project Completion meals
4 Birthday cakes and cards
5 Picnics
6 Staff Appreciation Day
7 Holiday Parties
8 Dress-up Days
9 Corporate Merchandise
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-
54
bull Succession Planning refers to the process of developing the second line for taking up a higher role in the organization
SUCCESSION PLANNING
55
HR MEASUREMENT AND AUDIT
bull Audit helps the organization have a clear understanding of the lacunae and better align the HR processes with Business goals
bull The audit itself is a diagnostic tool not a prescriptive instrument It helps in identifying what is missing or needs to improve It is most useful when an organization is ready to act on the findings and to evolve its HR function to play a greater strategic role
56
WHY CONDUCT AN HR AUDIT
1048698 It helps promote more professionalism and professional management
1048698 HR audit helps an organization to be aware of its present practices policies
and their adherence
1048698 Benchmarking to improve HR practices
1048698 The organization can benchmark its processes with best-in-class organizations
1048698 HR audit suggest improvement measures keeping the organizational strategic goals and vision in mind
57
THE HR AUDIT PROCESS
InterviewsQuestionnaires
The audit team interviews the following
1048698 Top Management (CEO Unit Heads)
1048698 Line Managers (eg Managers in production quality purchase and marketing)
1048698 HRD Staff
1048698 Workmen and others
Observation and Recording
Follow-up and Corrections done
58
HUMAN RESOURCE ACCOUNTING
bull The American Accounting Associationrsquos Committee on Human Resource Accounting (1973) has defined Human Resource Accounting as ldquothe process of identifying and measuring data about human resources and communicating this information to interested partiesrdquo
bull It is the measurement and reporting of the cost and value of people in organizational Resources
59
METHODS OF HUMAN RESOURCE ACCOUNTING
Methods of Valuing and Accounting of Human Resources
The methods to value and account for human resources can be classified into the following categories
1 Methods based on costs (which include costs incurred by the company to recruit hire train and develop human resources)
2 Methods based on economic value of human resources and the capitalisation of companyrsquos earnings
60
HUMAN RESOURCE ACCOUNTING
Methods based on Cost
Historical Cost Method
Under this method the cost of acquisition ie selection hiring training costs of employees are capitalised and written off over the expected useful life of the employees In case the personnel leave the company before the anticipated period of service then the unamortised portion of costs remaining in the companyrsquos books is written off against the profit and loss account in that year If the period of service exceeds the anticipated time then amortisation of costs is rescheduled
Replacement Cost Method
Under this method the human resources are valued at their replacement cost ie The monetary implications of replacing existing personnel
Standard Cost Method
Under this method standard costs of recruiting hiring training and developing per grade of employees are determined annually The total standard cost for all personnel of the company is the value of human resources
61
HUMAN RESOURCE ACCOUNTING
bull HR Accounting based on Value
bull Economic Value Method
bull Under this method the net present value of incremental cash flows attributed to human resources is taken as the asset value
62
HUMAN RESOURCE INFORMATION SYSTEMS(HRIS)
bull An information system may be automated or manual and involves collectingprocessing transmitting and disseminating data that represents user information
63
HRIS ndash APPLICATION AND UTILITIES
Personnel administration It will encompass information about each employee
such as name address personal details etc
1048698 Salary administration Generate personnel cost reports conduct lsquowhat if
analysisrsquo provide compensation history
1048698 Leave and absence recording Essentially being able to provide comprehensive
method of tracking absences late coming reports on excess leave availed leave
lapsed
1048698 Skill inventory Recording of acquired skills and monitor the skill database at the
employee and organisational level
1048698 Performance appraisal The system should record individual employee
performance appraisal data such as appraisal ratings due date of appraisal
training needs identified during the appraisal process
1048698 Recruitment Record recruitment cost lead time to fill a vacant position
recruitment methods applicant and resume management
1048698 Career planning HRIS System can provide succession plan reports identifying
employees earmarked for future position
64
HRIS ndash DISADVANTAGES
May be expensive ndash financing the technology
1048698 Thorough understanding of what constitutes quality information for the user
1048698 Computer cannot substitute human beings
HUMAN RESOURCE DEVELOPMENT SYSTEM
66
HRD
HRD play a very crucial role in organization Henery Ford once said ldquotake out my building take out my machines take out all capital but leave my men with me and I will become Henry Ford againrdquo HRD is considered as key to higher productivity better relations and greater profitability for any organization
According to Daftur
ldquoHRD is a system and process concerned with an organized series of learning activities within specified time limits designed to produce behavioral changes in the learner in such a way that it acquires desired level of competence for present or future rolerdquo
67
HRDORGANIZATION ALIGNMENT MODEL
TRAINING AND DEVELOPMENT
69
NEED FOR TRAINING AND DEVELOPMENT
bull Technological advances bull Organizational complexity bull Organizational tenure bull Human relations movement
70
THE TRAINING PROCESS
71
Needs Assessment
72
bull Lecturesbull Audio Visualsbull On-the-job Training (OJT)bull Programmed Instructionbull Computer Assisted Instruction (CAI)bull Simulation
Methods and Techniques of Training
73
Training Methods for Management Development
1048698 Seminars and Conferences
1048698 Case Study
1048698 Role Playing
1048698 Management Games
1048698 Sensitivity Training
74
bull Implementation of the Training Program
bull Evaluation of Training Program
75
Kirkpatrick Model for Evaluating Effectiveness of Training Programs
1 Reactions
2 Learning
3 Behaviors
Results or Return on Investment (ROI)
76
SPECIAL TOPICS IN TRAINING ANDDEVELOPMENT
bull Cross-cultural Training
bull Orientation Training
bull Team-training and Cross-training
bull Diversity Training
COMPENSATION AND REWARDS
78
COMPENSATION OVERVIEW
Compensation is the process of directly and indirectly rewarding employees on a current or deferred basis for their performance of assigned tasks It consists of
1048698 Direct Financial Compensation Wages salaries bonuses commissions
1048698 Indirect Financial Compensation All financial rewards not included in direct compensation (benefits)
1048698 Non-financial Compensation Satisfaction received from the job or from the psychological andor physical environment of the job
JOB EVALUATION TECHNIQUE
The general step-wise procedure for job evaluation is as under
1 Select the group of jobs
2 Study the job (job analysis)
3 Prepare job description ndash approval
4 Device an evaluation plan ndash common characteristicstraits
5 Establish a committee of raters and rateevaluate
6 Group or classify the jobs
7 Convert job grades to money value along with Wage survey
8 Obtain approval from Union and Management
9 Establish a suitable grievance procedure
COMPONENTS OF COMPENSATION SYSTEM
1 Basic WagesSalaries
2 Dearness Allowance
3 Bonus
4 Commissions
5 Mixed Plans
6 Piece Rate Wages
7 Sign on Bonuses
8 Profit Sharing Payments
9 Fringe Benefits
COMPENSATION EQUITY
1048698 External Equity Employees are paid comparably to those who perform similar jobs in other industries
1048698 Internal Equity Employees are paid according to relative value of their jobs within an organisation
1048698 Employee Equity Individuals performing similar jobs for the same firm are rewarded according to factors unique to the employee such as performance level or seniority
1048698 Team Equity More productive teams receive greater rewards than less productive groups
INTERNATIONAL COMPENSATION
Elements of Expatriate Compensation
Basic Pay Amount of money that an expatriate receives from home country Used for
Bonus calculation
Benefits
1048698 One third of compensation
1048698 Extra vacation special leaves air fares for their families for an annual visit home
emergency leaves
1048698 Housing
1048698 Utilities ndash air conditioner bottled water electricity telephone call expenses
1048698 Car ndash car expenses chauffeur hired vehicle
Helping hands servants gardeners security
1048698 Club subscription
1048698 Educational benefits
Allowances
1048698 COLA ndash cost of living between home country and foreign country inflation
1048698 Relocation allowances
1048698 Hardship allowances
1048698 Separation allowances
1048698 Clothing allowances ndash very cold climates
1048698 Home leave allowances
1048698 Spouse assistance allowances
REWARDS SYSTEM
Reward System as Followed by Organisations
1 Incentive and Rewards
2 Competency Related Pay
3 Skill Based Pay
4 Team Based Rewards
5 Profit Sharing
7 Employee Ownership
8 Statutory and Voluntary Benefits
FORMS OF RECOGNITION
Examples of Formal Recognition
1 Milestone Service Anniversary Awards (5101520 25 years of service)
2 Ideas Improvement amp Performance Awards
3 Service Awards
a) Teamworkleadership
b) Customer Service
c) Citizenship
d) Innovation
e) Attendance
4 Awards would include
a) PlaquesDesk trophies
b) Certificates
c) GiftsCertificates
d) Picture in the webpage
FORMS OF RECOGNITION
Examples of Informal Recognition
1 Team Building Retreats
2 Acknowledgement of DeptDivision goals achieved
3 Project Completion meals
4 Birthday cakes and cards
5 Picnics
6 Staff Appreciation Day
7 Holiday Parties
8 Dress-up Days
9 Corporate Merchandise
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-
55
HR MEASUREMENT AND AUDIT
bull Audit helps the organization have a clear understanding of the lacunae and better align the HR processes with Business goals
bull The audit itself is a diagnostic tool not a prescriptive instrument It helps in identifying what is missing or needs to improve It is most useful when an organization is ready to act on the findings and to evolve its HR function to play a greater strategic role
56
WHY CONDUCT AN HR AUDIT
1048698 It helps promote more professionalism and professional management
1048698 HR audit helps an organization to be aware of its present practices policies
and their adherence
1048698 Benchmarking to improve HR practices
1048698 The organization can benchmark its processes with best-in-class organizations
1048698 HR audit suggest improvement measures keeping the organizational strategic goals and vision in mind
57
THE HR AUDIT PROCESS
InterviewsQuestionnaires
The audit team interviews the following
1048698 Top Management (CEO Unit Heads)
1048698 Line Managers (eg Managers in production quality purchase and marketing)
1048698 HRD Staff
1048698 Workmen and others
Observation and Recording
Follow-up and Corrections done
58
HUMAN RESOURCE ACCOUNTING
bull The American Accounting Associationrsquos Committee on Human Resource Accounting (1973) has defined Human Resource Accounting as ldquothe process of identifying and measuring data about human resources and communicating this information to interested partiesrdquo
bull It is the measurement and reporting of the cost and value of people in organizational Resources
59
METHODS OF HUMAN RESOURCE ACCOUNTING
Methods of Valuing and Accounting of Human Resources
The methods to value and account for human resources can be classified into the following categories
1 Methods based on costs (which include costs incurred by the company to recruit hire train and develop human resources)
2 Methods based on economic value of human resources and the capitalisation of companyrsquos earnings
60
HUMAN RESOURCE ACCOUNTING
Methods based on Cost
Historical Cost Method
Under this method the cost of acquisition ie selection hiring training costs of employees are capitalised and written off over the expected useful life of the employees In case the personnel leave the company before the anticipated period of service then the unamortised portion of costs remaining in the companyrsquos books is written off against the profit and loss account in that year If the period of service exceeds the anticipated time then amortisation of costs is rescheduled
Replacement Cost Method
Under this method the human resources are valued at their replacement cost ie The monetary implications of replacing existing personnel
Standard Cost Method
Under this method standard costs of recruiting hiring training and developing per grade of employees are determined annually The total standard cost for all personnel of the company is the value of human resources
61
HUMAN RESOURCE ACCOUNTING
bull HR Accounting based on Value
bull Economic Value Method
bull Under this method the net present value of incremental cash flows attributed to human resources is taken as the asset value
62
HUMAN RESOURCE INFORMATION SYSTEMS(HRIS)
bull An information system may be automated or manual and involves collectingprocessing transmitting and disseminating data that represents user information
63
HRIS ndash APPLICATION AND UTILITIES
Personnel administration It will encompass information about each employee
such as name address personal details etc
1048698 Salary administration Generate personnel cost reports conduct lsquowhat if
analysisrsquo provide compensation history
1048698 Leave and absence recording Essentially being able to provide comprehensive
method of tracking absences late coming reports on excess leave availed leave
lapsed
1048698 Skill inventory Recording of acquired skills and monitor the skill database at the
employee and organisational level
1048698 Performance appraisal The system should record individual employee
performance appraisal data such as appraisal ratings due date of appraisal
training needs identified during the appraisal process
1048698 Recruitment Record recruitment cost lead time to fill a vacant position
recruitment methods applicant and resume management
1048698 Career planning HRIS System can provide succession plan reports identifying
employees earmarked for future position
64
HRIS ndash DISADVANTAGES
May be expensive ndash financing the technology
1048698 Thorough understanding of what constitutes quality information for the user
1048698 Computer cannot substitute human beings
HUMAN RESOURCE DEVELOPMENT SYSTEM
66
HRD
HRD play a very crucial role in organization Henery Ford once said ldquotake out my building take out my machines take out all capital but leave my men with me and I will become Henry Ford againrdquo HRD is considered as key to higher productivity better relations and greater profitability for any organization
According to Daftur
ldquoHRD is a system and process concerned with an organized series of learning activities within specified time limits designed to produce behavioral changes in the learner in such a way that it acquires desired level of competence for present or future rolerdquo
67
HRDORGANIZATION ALIGNMENT MODEL
TRAINING AND DEVELOPMENT
69
NEED FOR TRAINING AND DEVELOPMENT
bull Technological advances bull Organizational complexity bull Organizational tenure bull Human relations movement
70
THE TRAINING PROCESS
71
Needs Assessment
72
bull Lecturesbull Audio Visualsbull On-the-job Training (OJT)bull Programmed Instructionbull Computer Assisted Instruction (CAI)bull Simulation
Methods and Techniques of Training
73
Training Methods for Management Development
1048698 Seminars and Conferences
1048698 Case Study
1048698 Role Playing
1048698 Management Games
1048698 Sensitivity Training
74
bull Implementation of the Training Program
bull Evaluation of Training Program
75
Kirkpatrick Model for Evaluating Effectiveness of Training Programs
1 Reactions
2 Learning
3 Behaviors
Results or Return on Investment (ROI)
76
SPECIAL TOPICS IN TRAINING ANDDEVELOPMENT
bull Cross-cultural Training
bull Orientation Training
bull Team-training and Cross-training
bull Diversity Training
COMPENSATION AND REWARDS
78
COMPENSATION OVERVIEW
Compensation is the process of directly and indirectly rewarding employees on a current or deferred basis for their performance of assigned tasks It consists of
1048698 Direct Financial Compensation Wages salaries bonuses commissions
1048698 Indirect Financial Compensation All financial rewards not included in direct compensation (benefits)
1048698 Non-financial Compensation Satisfaction received from the job or from the psychological andor physical environment of the job
JOB EVALUATION TECHNIQUE
The general step-wise procedure for job evaluation is as under
1 Select the group of jobs
2 Study the job (job analysis)
3 Prepare job description ndash approval
4 Device an evaluation plan ndash common characteristicstraits
5 Establish a committee of raters and rateevaluate
6 Group or classify the jobs
7 Convert job grades to money value along with Wage survey
8 Obtain approval from Union and Management
9 Establish a suitable grievance procedure
COMPONENTS OF COMPENSATION SYSTEM
1 Basic WagesSalaries
2 Dearness Allowance
3 Bonus
4 Commissions
5 Mixed Plans
6 Piece Rate Wages
7 Sign on Bonuses
8 Profit Sharing Payments
9 Fringe Benefits
COMPENSATION EQUITY
1048698 External Equity Employees are paid comparably to those who perform similar jobs in other industries
1048698 Internal Equity Employees are paid according to relative value of their jobs within an organisation
1048698 Employee Equity Individuals performing similar jobs for the same firm are rewarded according to factors unique to the employee such as performance level or seniority
1048698 Team Equity More productive teams receive greater rewards than less productive groups
INTERNATIONAL COMPENSATION
Elements of Expatriate Compensation
Basic Pay Amount of money that an expatriate receives from home country Used for
Bonus calculation
Benefits
1048698 One third of compensation
1048698 Extra vacation special leaves air fares for their families for an annual visit home
emergency leaves
1048698 Housing
1048698 Utilities ndash air conditioner bottled water electricity telephone call expenses
1048698 Car ndash car expenses chauffeur hired vehicle
Helping hands servants gardeners security
1048698 Club subscription
1048698 Educational benefits
Allowances
1048698 COLA ndash cost of living between home country and foreign country inflation
1048698 Relocation allowances
1048698 Hardship allowances
1048698 Separation allowances
1048698 Clothing allowances ndash very cold climates
1048698 Home leave allowances
1048698 Spouse assistance allowances
REWARDS SYSTEM
Reward System as Followed by Organisations
1 Incentive and Rewards
2 Competency Related Pay
3 Skill Based Pay
4 Team Based Rewards
5 Profit Sharing
7 Employee Ownership
8 Statutory and Voluntary Benefits
FORMS OF RECOGNITION
Examples of Formal Recognition
1 Milestone Service Anniversary Awards (5101520 25 years of service)
2 Ideas Improvement amp Performance Awards
3 Service Awards
a) Teamworkleadership
b) Customer Service
c) Citizenship
d) Innovation
e) Attendance
4 Awards would include
a) PlaquesDesk trophies
b) Certificates
c) GiftsCertificates
d) Picture in the webpage
FORMS OF RECOGNITION
Examples of Informal Recognition
1 Team Building Retreats
2 Acknowledgement of DeptDivision goals achieved
3 Project Completion meals
4 Birthday cakes and cards
5 Picnics
6 Staff Appreciation Day
7 Holiday Parties
8 Dress-up Days
9 Corporate Merchandise
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-
56
WHY CONDUCT AN HR AUDIT
1048698 It helps promote more professionalism and professional management
1048698 HR audit helps an organization to be aware of its present practices policies
and their adherence
1048698 Benchmarking to improve HR practices
1048698 The organization can benchmark its processes with best-in-class organizations
1048698 HR audit suggest improvement measures keeping the organizational strategic goals and vision in mind
57
THE HR AUDIT PROCESS
InterviewsQuestionnaires
The audit team interviews the following
1048698 Top Management (CEO Unit Heads)
1048698 Line Managers (eg Managers in production quality purchase and marketing)
1048698 HRD Staff
1048698 Workmen and others
Observation and Recording
Follow-up and Corrections done
58
HUMAN RESOURCE ACCOUNTING
bull The American Accounting Associationrsquos Committee on Human Resource Accounting (1973) has defined Human Resource Accounting as ldquothe process of identifying and measuring data about human resources and communicating this information to interested partiesrdquo
bull It is the measurement and reporting of the cost and value of people in organizational Resources
59
METHODS OF HUMAN RESOURCE ACCOUNTING
Methods of Valuing and Accounting of Human Resources
The methods to value and account for human resources can be classified into the following categories
1 Methods based on costs (which include costs incurred by the company to recruit hire train and develop human resources)
2 Methods based on economic value of human resources and the capitalisation of companyrsquos earnings
60
HUMAN RESOURCE ACCOUNTING
Methods based on Cost
Historical Cost Method
Under this method the cost of acquisition ie selection hiring training costs of employees are capitalised and written off over the expected useful life of the employees In case the personnel leave the company before the anticipated period of service then the unamortised portion of costs remaining in the companyrsquos books is written off against the profit and loss account in that year If the period of service exceeds the anticipated time then amortisation of costs is rescheduled
Replacement Cost Method
Under this method the human resources are valued at their replacement cost ie The monetary implications of replacing existing personnel
Standard Cost Method
Under this method standard costs of recruiting hiring training and developing per grade of employees are determined annually The total standard cost for all personnel of the company is the value of human resources
61
HUMAN RESOURCE ACCOUNTING
bull HR Accounting based on Value
bull Economic Value Method
bull Under this method the net present value of incremental cash flows attributed to human resources is taken as the asset value
62
HUMAN RESOURCE INFORMATION SYSTEMS(HRIS)
bull An information system may be automated or manual and involves collectingprocessing transmitting and disseminating data that represents user information
63
HRIS ndash APPLICATION AND UTILITIES
Personnel administration It will encompass information about each employee
such as name address personal details etc
1048698 Salary administration Generate personnel cost reports conduct lsquowhat if
analysisrsquo provide compensation history
1048698 Leave and absence recording Essentially being able to provide comprehensive
method of tracking absences late coming reports on excess leave availed leave
lapsed
1048698 Skill inventory Recording of acquired skills and monitor the skill database at the
employee and organisational level
1048698 Performance appraisal The system should record individual employee
performance appraisal data such as appraisal ratings due date of appraisal
training needs identified during the appraisal process
1048698 Recruitment Record recruitment cost lead time to fill a vacant position
recruitment methods applicant and resume management
1048698 Career planning HRIS System can provide succession plan reports identifying
employees earmarked for future position
64
HRIS ndash DISADVANTAGES
May be expensive ndash financing the technology
1048698 Thorough understanding of what constitutes quality information for the user
1048698 Computer cannot substitute human beings
HUMAN RESOURCE DEVELOPMENT SYSTEM
66
HRD
HRD play a very crucial role in organization Henery Ford once said ldquotake out my building take out my machines take out all capital but leave my men with me and I will become Henry Ford againrdquo HRD is considered as key to higher productivity better relations and greater profitability for any organization
According to Daftur
ldquoHRD is a system and process concerned with an organized series of learning activities within specified time limits designed to produce behavioral changes in the learner in such a way that it acquires desired level of competence for present or future rolerdquo
67
HRDORGANIZATION ALIGNMENT MODEL
TRAINING AND DEVELOPMENT
69
NEED FOR TRAINING AND DEVELOPMENT
bull Technological advances bull Organizational complexity bull Organizational tenure bull Human relations movement
70
THE TRAINING PROCESS
71
Needs Assessment
72
bull Lecturesbull Audio Visualsbull On-the-job Training (OJT)bull Programmed Instructionbull Computer Assisted Instruction (CAI)bull Simulation
Methods and Techniques of Training
73
Training Methods for Management Development
1048698 Seminars and Conferences
1048698 Case Study
1048698 Role Playing
1048698 Management Games
1048698 Sensitivity Training
74
bull Implementation of the Training Program
bull Evaluation of Training Program
75
Kirkpatrick Model for Evaluating Effectiveness of Training Programs
1 Reactions
2 Learning
3 Behaviors
Results or Return on Investment (ROI)
76
SPECIAL TOPICS IN TRAINING ANDDEVELOPMENT
bull Cross-cultural Training
bull Orientation Training
bull Team-training and Cross-training
bull Diversity Training
COMPENSATION AND REWARDS
78
COMPENSATION OVERVIEW
Compensation is the process of directly and indirectly rewarding employees on a current or deferred basis for their performance of assigned tasks It consists of
1048698 Direct Financial Compensation Wages salaries bonuses commissions
1048698 Indirect Financial Compensation All financial rewards not included in direct compensation (benefits)
1048698 Non-financial Compensation Satisfaction received from the job or from the psychological andor physical environment of the job
JOB EVALUATION TECHNIQUE
The general step-wise procedure for job evaluation is as under
1 Select the group of jobs
2 Study the job (job analysis)
3 Prepare job description ndash approval
4 Device an evaluation plan ndash common characteristicstraits
5 Establish a committee of raters and rateevaluate
6 Group or classify the jobs
7 Convert job grades to money value along with Wage survey
8 Obtain approval from Union and Management
9 Establish a suitable grievance procedure
COMPONENTS OF COMPENSATION SYSTEM
1 Basic WagesSalaries
2 Dearness Allowance
3 Bonus
4 Commissions
5 Mixed Plans
6 Piece Rate Wages
7 Sign on Bonuses
8 Profit Sharing Payments
9 Fringe Benefits
COMPENSATION EQUITY
1048698 External Equity Employees are paid comparably to those who perform similar jobs in other industries
1048698 Internal Equity Employees are paid according to relative value of their jobs within an organisation
1048698 Employee Equity Individuals performing similar jobs for the same firm are rewarded according to factors unique to the employee such as performance level or seniority
1048698 Team Equity More productive teams receive greater rewards than less productive groups
INTERNATIONAL COMPENSATION
Elements of Expatriate Compensation
Basic Pay Amount of money that an expatriate receives from home country Used for
Bonus calculation
Benefits
1048698 One third of compensation
1048698 Extra vacation special leaves air fares for their families for an annual visit home
emergency leaves
1048698 Housing
1048698 Utilities ndash air conditioner bottled water electricity telephone call expenses
1048698 Car ndash car expenses chauffeur hired vehicle
Helping hands servants gardeners security
1048698 Club subscription
1048698 Educational benefits
Allowances
1048698 COLA ndash cost of living between home country and foreign country inflation
1048698 Relocation allowances
1048698 Hardship allowances
1048698 Separation allowances
1048698 Clothing allowances ndash very cold climates
1048698 Home leave allowances
1048698 Spouse assistance allowances
REWARDS SYSTEM
Reward System as Followed by Organisations
1 Incentive and Rewards
2 Competency Related Pay
3 Skill Based Pay
4 Team Based Rewards
5 Profit Sharing
7 Employee Ownership
8 Statutory and Voluntary Benefits
FORMS OF RECOGNITION
Examples of Formal Recognition
1 Milestone Service Anniversary Awards (5101520 25 years of service)
2 Ideas Improvement amp Performance Awards
3 Service Awards
a) Teamworkleadership
b) Customer Service
c) Citizenship
d) Innovation
e) Attendance
4 Awards would include
a) PlaquesDesk trophies
b) Certificates
c) GiftsCertificates
d) Picture in the webpage
FORMS OF RECOGNITION
Examples of Informal Recognition
1 Team Building Retreats
2 Acknowledgement of DeptDivision goals achieved
3 Project Completion meals
4 Birthday cakes and cards
5 Picnics
6 Staff Appreciation Day
7 Holiday Parties
8 Dress-up Days
9 Corporate Merchandise
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-
57
THE HR AUDIT PROCESS
InterviewsQuestionnaires
The audit team interviews the following
1048698 Top Management (CEO Unit Heads)
1048698 Line Managers (eg Managers in production quality purchase and marketing)
1048698 HRD Staff
1048698 Workmen and others
Observation and Recording
Follow-up and Corrections done
58
HUMAN RESOURCE ACCOUNTING
bull The American Accounting Associationrsquos Committee on Human Resource Accounting (1973) has defined Human Resource Accounting as ldquothe process of identifying and measuring data about human resources and communicating this information to interested partiesrdquo
bull It is the measurement and reporting of the cost and value of people in organizational Resources
59
METHODS OF HUMAN RESOURCE ACCOUNTING
Methods of Valuing and Accounting of Human Resources
The methods to value and account for human resources can be classified into the following categories
1 Methods based on costs (which include costs incurred by the company to recruit hire train and develop human resources)
2 Methods based on economic value of human resources and the capitalisation of companyrsquos earnings
60
HUMAN RESOURCE ACCOUNTING
Methods based on Cost
Historical Cost Method
Under this method the cost of acquisition ie selection hiring training costs of employees are capitalised and written off over the expected useful life of the employees In case the personnel leave the company before the anticipated period of service then the unamortised portion of costs remaining in the companyrsquos books is written off against the profit and loss account in that year If the period of service exceeds the anticipated time then amortisation of costs is rescheduled
Replacement Cost Method
Under this method the human resources are valued at their replacement cost ie The monetary implications of replacing existing personnel
Standard Cost Method
Under this method standard costs of recruiting hiring training and developing per grade of employees are determined annually The total standard cost for all personnel of the company is the value of human resources
61
HUMAN RESOURCE ACCOUNTING
bull HR Accounting based on Value
bull Economic Value Method
bull Under this method the net present value of incremental cash flows attributed to human resources is taken as the asset value
62
HUMAN RESOURCE INFORMATION SYSTEMS(HRIS)
bull An information system may be automated or manual and involves collectingprocessing transmitting and disseminating data that represents user information
63
HRIS ndash APPLICATION AND UTILITIES
Personnel administration It will encompass information about each employee
such as name address personal details etc
1048698 Salary administration Generate personnel cost reports conduct lsquowhat if
analysisrsquo provide compensation history
1048698 Leave and absence recording Essentially being able to provide comprehensive
method of tracking absences late coming reports on excess leave availed leave
lapsed
1048698 Skill inventory Recording of acquired skills and monitor the skill database at the
employee and organisational level
1048698 Performance appraisal The system should record individual employee
performance appraisal data such as appraisal ratings due date of appraisal
training needs identified during the appraisal process
1048698 Recruitment Record recruitment cost lead time to fill a vacant position
recruitment methods applicant and resume management
1048698 Career planning HRIS System can provide succession plan reports identifying
employees earmarked for future position
64
HRIS ndash DISADVANTAGES
May be expensive ndash financing the technology
1048698 Thorough understanding of what constitutes quality information for the user
1048698 Computer cannot substitute human beings
HUMAN RESOURCE DEVELOPMENT SYSTEM
66
HRD
HRD play a very crucial role in organization Henery Ford once said ldquotake out my building take out my machines take out all capital but leave my men with me and I will become Henry Ford againrdquo HRD is considered as key to higher productivity better relations and greater profitability for any organization
According to Daftur
ldquoHRD is a system and process concerned with an organized series of learning activities within specified time limits designed to produce behavioral changes in the learner in such a way that it acquires desired level of competence for present or future rolerdquo
67
HRDORGANIZATION ALIGNMENT MODEL
TRAINING AND DEVELOPMENT
69
NEED FOR TRAINING AND DEVELOPMENT
bull Technological advances bull Organizational complexity bull Organizational tenure bull Human relations movement
70
THE TRAINING PROCESS
71
Needs Assessment
72
bull Lecturesbull Audio Visualsbull On-the-job Training (OJT)bull Programmed Instructionbull Computer Assisted Instruction (CAI)bull Simulation
Methods and Techniques of Training
73
Training Methods for Management Development
1048698 Seminars and Conferences
1048698 Case Study
1048698 Role Playing
1048698 Management Games
1048698 Sensitivity Training
74
bull Implementation of the Training Program
bull Evaluation of Training Program
75
Kirkpatrick Model for Evaluating Effectiveness of Training Programs
1 Reactions
2 Learning
3 Behaviors
Results or Return on Investment (ROI)
76
SPECIAL TOPICS IN TRAINING ANDDEVELOPMENT
bull Cross-cultural Training
bull Orientation Training
bull Team-training and Cross-training
bull Diversity Training
COMPENSATION AND REWARDS
78
COMPENSATION OVERVIEW
Compensation is the process of directly and indirectly rewarding employees on a current or deferred basis for their performance of assigned tasks It consists of
1048698 Direct Financial Compensation Wages salaries bonuses commissions
1048698 Indirect Financial Compensation All financial rewards not included in direct compensation (benefits)
1048698 Non-financial Compensation Satisfaction received from the job or from the psychological andor physical environment of the job
JOB EVALUATION TECHNIQUE
The general step-wise procedure for job evaluation is as under
1 Select the group of jobs
2 Study the job (job analysis)
3 Prepare job description ndash approval
4 Device an evaluation plan ndash common characteristicstraits
5 Establish a committee of raters and rateevaluate
6 Group or classify the jobs
7 Convert job grades to money value along with Wage survey
8 Obtain approval from Union and Management
9 Establish a suitable grievance procedure
COMPONENTS OF COMPENSATION SYSTEM
1 Basic WagesSalaries
2 Dearness Allowance
3 Bonus
4 Commissions
5 Mixed Plans
6 Piece Rate Wages
7 Sign on Bonuses
8 Profit Sharing Payments
9 Fringe Benefits
COMPENSATION EQUITY
1048698 External Equity Employees are paid comparably to those who perform similar jobs in other industries
1048698 Internal Equity Employees are paid according to relative value of their jobs within an organisation
1048698 Employee Equity Individuals performing similar jobs for the same firm are rewarded according to factors unique to the employee such as performance level or seniority
1048698 Team Equity More productive teams receive greater rewards than less productive groups
INTERNATIONAL COMPENSATION
Elements of Expatriate Compensation
Basic Pay Amount of money that an expatriate receives from home country Used for
Bonus calculation
Benefits
1048698 One third of compensation
1048698 Extra vacation special leaves air fares for their families for an annual visit home
emergency leaves
1048698 Housing
1048698 Utilities ndash air conditioner bottled water electricity telephone call expenses
1048698 Car ndash car expenses chauffeur hired vehicle
Helping hands servants gardeners security
1048698 Club subscription
1048698 Educational benefits
Allowances
1048698 COLA ndash cost of living between home country and foreign country inflation
1048698 Relocation allowances
1048698 Hardship allowances
1048698 Separation allowances
1048698 Clothing allowances ndash very cold climates
1048698 Home leave allowances
1048698 Spouse assistance allowances
REWARDS SYSTEM
Reward System as Followed by Organisations
1 Incentive and Rewards
2 Competency Related Pay
3 Skill Based Pay
4 Team Based Rewards
5 Profit Sharing
7 Employee Ownership
8 Statutory and Voluntary Benefits
FORMS OF RECOGNITION
Examples of Formal Recognition
1 Milestone Service Anniversary Awards (5101520 25 years of service)
2 Ideas Improvement amp Performance Awards
3 Service Awards
a) Teamworkleadership
b) Customer Service
c) Citizenship
d) Innovation
e) Attendance
4 Awards would include
a) PlaquesDesk trophies
b) Certificates
c) GiftsCertificates
d) Picture in the webpage
FORMS OF RECOGNITION
Examples of Informal Recognition
1 Team Building Retreats
2 Acknowledgement of DeptDivision goals achieved
3 Project Completion meals
4 Birthday cakes and cards
5 Picnics
6 Staff Appreciation Day
7 Holiday Parties
8 Dress-up Days
9 Corporate Merchandise
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-
58
HUMAN RESOURCE ACCOUNTING
bull The American Accounting Associationrsquos Committee on Human Resource Accounting (1973) has defined Human Resource Accounting as ldquothe process of identifying and measuring data about human resources and communicating this information to interested partiesrdquo
bull It is the measurement and reporting of the cost and value of people in organizational Resources
59
METHODS OF HUMAN RESOURCE ACCOUNTING
Methods of Valuing and Accounting of Human Resources
The methods to value and account for human resources can be classified into the following categories
1 Methods based on costs (which include costs incurred by the company to recruit hire train and develop human resources)
2 Methods based on economic value of human resources and the capitalisation of companyrsquos earnings
60
HUMAN RESOURCE ACCOUNTING
Methods based on Cost
Historical Cost Method
Under this method the cost of acquisition ie selection hiring training costs of employees are capitalised and written off over the expected useful life of the employees In case the personnel leave the company before the anticipated period of service then the unamortised portion of costs remaining in the companyrsquos books is written off against the profit and loss account in that year If the period of service exceeds the anticipated time then amortisation of costs is rescheduled
Replacement Cost Method
Under this method the human resources are valued at their replacement cost ie The monetary implications of replacing existing personnel
Standard Cost Method
Under this method standard costs of recruiting hiring training and developing per grade of employees are determined annually The total standard cost for all personnel of the company is the value of human resources
61
HUMAN RESOURCE ACCOUNTING
bull HR Accounting based on Value
bull Economic Value Method
bull Under this method the net present value of incremental cash flows attributed to human resources is taken as the asset value
62
HUMAN RESOURCE INFORMATION SYSTEMS(HRIS)
bull An information system may be automated or manual and involves collectingprocessing transmitting and disseminating data that represents user information
63
HRIS ndash APPLICATION AND UTILITIES
Personnel administration It will encompass information about each employee
such as name address personal details etc
1048698 Salary administration Generate personnel cost reports conduct lsquowhat if
analysisrsquo provide compensation history
1048698 Leave and absence recording Essentially being able to provide comprehensive
method of tracking absences late coming reports on excess leave availed leave
lapsed
1048698 Skill inventory Recording of acquired skills and monitor the skill database at the
employee and organisational level
1048698 Performance appraisal The system should record individual employee
performance appraisal data such as appraisal ratings due date of appraisal
training needs identified during the appraisal process
1048698 Recruitment Record recruitment cost lead time to fill a vacant position
recruitment methods applicant and resume management
1048698 Career planning HRIS System can provide succession plan reports identifying
employees earmarked for future position
64
HRIS ndash DISADVANTAGES
May be expensive ndash financing the technology
1048698 Thorough understanding of what constitutes quality information for the user
1048698 Computer cannot substitute human beings
HUMAN RESOURCE DEVELOPMENT SYSTEM
66
HRD
HRD play a very crucial role in organization Henery Ford once said ldquotake out my building take out my machines take out all capital but leave my men with me and I will become Henry Ford againrdquo HRD is considered as key to higher productivity better relations and greater profitability for any organization
According to Daftur
ldquoHRD is a system and process concerned with an organized series of learning activities within specified time limits designed to produce behavioral changes in the learner in such a way that it acquires desired level of competence for present or future rolerdquo
67
HRDORGANIZATION ALIGNMENT MODEL
TRAINING AND DEVELOPMENT
69
NEED FOR TRAINING AND DEVELOPMENT
bull Technological advances bull Organizational complexity bull Organizational tenure bull Human relations movement
70
THE TRAINING PROCESS
71
Needs Assessment
72
bull Lecturesbull Audio Visualsbull On-the-job Training (OJT)bull Programmed Instructionbull Computer Assisted Instruction (CAI)bull Simulation
Methods and Techniques of Training
73
Training Methods for Management Development
1048698 Seminars and Conferences
1048698 Case Study
1048698 Role Playing
1048698 Management Games
1048698 Sensitivity Training
74
bull Implementation of the Training Program
bull Evaluation of Training Program
75
Kirkpatrick Model for Evaluating Effectiveness of Training Programs
1 Reactions
2 Learning
3 Behaviors
Results or Return on Investment (ROI)
76
SPECIAL TOPICS IN TRAINING ANDDEVELOPMENT
bull Cross-cultural Training
bull Orientation Training
bull Team-training and Cross-training
bull Diversity Training
COMPENSATION AND REWARDS
78
COMPENSATION OVERVIEW
Compensation is the process of directly and indirectly rewarding employees on a current or deferred basis for their performance of assigned tasks It consists of
1048698 Direct Financial Compensation Wages salaries bonuses commissions
1048698 Indirect Financial Compensation All financial rewards not included in direct compensation (benefits)
1048698 Non-financial Compensation Satisfaction received from the job or from the psychological andor physical environment of the job
JOB EVALUATION TECHNIQUE
The general step-wise procedure for job evaluation is as under
1 Select the group of jobs
2 Study the job (job analysis)
3 Prepare job description ndash approval
4 Device an evaluation plan ndash common characteristicstraits
5 Establish a committee of raters and rateevaluate
6 Group or classify the jobs
7 Convert job grades to money value along with Wage survey
8 Obtain approval from Union and Management
9 Establish a suitable grievance procedure
COMPONENTS OF COMPENSATION SYSTEM
1 Basic WagesSalaries
2 Dearness Allowance
3 Bonus
4 Commissions
5 Mixed Plans
6 Piece Rate Wages
7 Sign on Bonuses
8 Profit Sharing Payments
9 Fringe Benefits
COMPENSATION EQUITY
1048698 External Equity Employees are paid comparably to those who perform similar jobs in other industries
1048698 Internal Equity Employees are paid according to relative value of their jobs within an organisation
1048698 Employee Equity Individuals performing similar jobs for the same firm are rewarded according to factors unique to the employee such as performance level or seniority
1048698 Team Equity More productive teams receive greater rewards than less productive groups
INTERNATIONAL COMPENSATION
Elements of Expatriate Compensation
Basic Pay Amount of money that an expatriate receives from home country Used for
Bonus calculation
Benefits
1048698 One third of compensation
1048698 Extra vacation special leaves air fares for their families for an annual visit home
emergency leaves
1048698 Housing
1048698 Utilities ndash air conditioner bottled water electricity telephone call expenses
1048698 Car ndash car expenses chauffeur hired vehicle
Helping hands servants gardeners security
1048698 Club subscription
1048698 Educational benefits
Allowances
1048698 COLA ndash cost of living between home country and foreign country inflation
1048698 Relocation allowances
1048698 Hardship allowances
1048698 Separation allowances
1048698 Clothing allowances ndash very cold climates
1048698 Home leave allowances
1048698 Spouse assistance allowances
REWARDS SYSTEM
Reward System as Followed by Organisations
1 Incentive and Rewards
2 Competency Related Pay
3 Skill Based Pay
4 Team Based Rewards
5 Profit Sharing
7 Employee Ownership
8 Statutory and Voluntary Benefits
FORMS OF RECOGNITION
Examples of Formal Recognition
1 Milestone Service Anniversary Awards (5101520 25 years of service)
2 Ideas Improvement amp Performance Awards
3 Service Awards
a) Teamworkleadership
b) Customer Service
c) Citizenship
d) Innovation
e) Attendance
4 Awards would include
a) PlaquesDesk trophies
b) Certificates
c) GiftsCertificates
d) Picture in the webpage
FORMS OF RECOGNITION
Examples of Informal Recognition
1 Team Building Retreats
2 Acknowledgement of DeptDivision goals achieved
3 Project Completion meals
4 Birthday cakes and cards
5 Picnics
6 Staff Appreciation Day
7 Holiday Parties
8 Dress-up Days
9 Corporate Merchandise
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-
59
METHODS OF HUMAN RESOURCE ACCOUNTING
Methods of Valuing and Accounting of Human Resources
The methods to value and account for human resources can be classified into the following categories
1 Methods based on costs (which include costs incurred by the company to recruit hire train and develop human resources)
2 Methods based on economic value of human resources and the capitalisation of companyrsquos earnings
60
HUMAN RESOURCE ACCOUNTING
Methods based on Cost
Historical Cost Method
Under this method the cost of acquisition ie selection hiring training costs of employees are capitalised and written off over the expected useful life of the employees In case the personnel leave the company before the anticipated period of service then the unamortised portion of costs remaining in the companyrsquos books is written off against the profit and loss account in that year If the period of service exceeds the anticipated time then amortisation of costs is rescheduled
Replacement Cost Method
Under this method the human resources are valued at their replacement cost ie The monetary implications of replacing existing personnel
Standard Cost Method
Under this method standard costs of recruiting hiring training and developing per grade of employees are determined annually The total standard cost for all personnel of the company is the value of human resources
61
HUMAN RESOURCE ACCOUNTING
bull HR Accounting based on Value
bull Economic Value Method
bull Under this method the net present value of incremental cash flows attributed to human resources is taken as the asset value
62
HUMAN RESOURCE INFORMATION SYSTEMS(HRIS)
bull An information system may be automated or manual and involves collectingprocessing transmitting and disseminating data that represents user information
63
HRIS ndash APPLICATION AND UTILITIES
Personnel administration It will encompass information about each employee
such as name address personal details etc
1048698 Salary administration Generate personnel cost reports conduct lsquowhat if
analysisrsquo provide compensation history
1048698 Leave and absence recording Essentially being able to provide comprehensive
method of tracking absences late coming reports on excess leave availed leave
lapsed
1048698 Skill inventory Recording of acquired skills and monitor the skill database at the
employee and organisational level
1048698 Performance appraisal The system should record individual employee
performance appraisal data such as appraisal ratings due date of appraisal
training needs identified during the appraisal process
1048698 Recruitment Record recruitment cost lead time to fill a vacant position
recruitment methods applicant and resume management
1048698 Career planning HRIS System can provide succession plan reports identifying
employees earmarked for future position
64
HRIS ndash DISADVANTAGES
May be expensive ndash financing the technology
1048698 Thorough understanding of what constitutes quality information for the user
1048698 Computer cannot substitute human beings
HUMAN RESOURCE DEVELOPMENT SYSTEM
66
HRD
HRD play a very crucial role in organization Henery Ford once said ldquotake out my building take out my machines take out all capital but leave my men with me and I will become Henry Ford againrdquo HRD is considered as key to higher productivity better relations and greater profitability for any organization
According to Daftur
ldquoHRD is a system and process concerned with an organized series of learning activities within specified time limits designed to produce behavioral changes in the learner in such a way that it acquires desired level of competence for present or future rolerdquo
67
HRDORGANIZATION ALIGNMENT MODEL
TRAINING AND DEVELOPMENT
69
NEED FOR TRAINING AND DEVELOPMENT
bull Technological advances bull Organizational complexity bull Organizational tenure bull Human relations movement
70
THE TRAINING PROCESS
71
Needs Assessment
72
bull Lecturesbull Audio Visualsbull On-the-job Training (OJT)bull Programmed Instructionbull Computer Assisted Instruction (CAI)bull Simulation
Methods and Techniques of Training
73
Training Methods for Management Development
1048698 Seminars and Conferences
1048698 Case Study
1048698 Role Playing
1048698 Management Games
1048698 Sensitivity Training
74
bull Implementation of the Training Program
bull Evaluation of Training Program
75
Kirkpatrick Model for Evaluating Effectiveness of Training Programs
1 Reactions
2 Learning
3 Behaviors
Results or Return on Investment (ROI)
76
SPECIAL TOPICS IN TRAINING ANDDEVELOPMENT
bull Cross-cultural Training
bull Orientation Training
bull Team-training and Cross-training
bull Diversity Training
COMPENSATION AND REWARDS
78
COMPENSATION OVERVIEW
Compensation is the process of directly and indirectly rewarding employees on a current or deferred basis for their performance of assigned tasks It consists of
1048698 Direct Financial Compensation Wages salaries bonuses commissions
1048698 Indirect Financial Compensation All financial rewards not included in direct compensation (benefits)
1048698 Non-financial Compensation Satisfaction received from the job or from the psychological andor physical environment of the job
JOB EVALUATION TECHNIQUE
The general step-wise procedure for job evaluation is as under
1 Select the group of jobs
2 Study the job (job analysis)
3 Prepare job description ndash approval
4 Device an evaluation plan ndash common characteristicstraits
5 Establish a committee of raters and rateevaluate
6 Group or classify the jobs
7 Convert job grades to money value along with Wage survey
8 Obtain approval from Union and Management
9 Establish a suitable grievance procedure
COMPONENTS OF COMPENSATION SYSTEM
1 Basic WagesSalaries
2 Dearness Allowance
3 Bonus
4 Commissions
5 Mixed Plans
6 Piece Rate Wages
7 Sign on Bonuses
8 Profit Sharing Payments
9 Fringe Benefits
COMPENSATION EQUITY
1048698 External Equity Employees are paid comparably to those who perform similar jobs in other industries
1048698 Internal Equity Employees are paid according to relative value of their jobs within an organisation
1048698 Employee Equity Individuals performing similar jobs for the same firm are rewarded according to factors unique to the employee such as performance level or seniority
1048698 Team Equity More productive teams receive greater rewards than less productive groups
INTERNATIONAL COMPENSATION
Elements of Expatriate Compensation
Basic Pay Amount of money that an expatriate receives from home country Used for
Bonus calculation
Benefits
1048698 One third of compensation
1048698 Extra vacation special leaves air fares for their families for an annual visit home
emergency leaves
1048698 Housing
1048698 Utilities ndash air conditioner bottled water electricity telephone call expenses
1048698 Car ndash car expenses chauffeur hired vehicle
Helping hands servants gardeners security
1048698 Club subscription
1048698 Educational benefits
Allowances
1048698 COLA ndash cost of living between home country and foreign country inflation
1048698 Relocation allowances
1048698 Hardship allowances
1048698 Separation allowances
1048698 Clothing allowances ndash very cold climates
1048698 Home leave allowances
1048698 Spouse assistance allowances
REWARDS SYSTEM
Reward System as Followed by Organisations
1 Incentive and Rewards
2 Competency Related Pay
3 Skill Based Pay
4 Team Based Rewards
5 Profit Sharing
7 Employee Ownership
8 Statutory and Voluntary Benefits
FORMS OF RECOGNITION
Examples of Formal Recognition
1 Milestone Service Anniversary Awards (5101520 25 years of service)
2 Ideas Improvement amp Performance Awards
3 Service Awards
a) Teamworkleadership
b) Customer Service
c) Citizenship
d) Innovation
e) Attendance
4 Awards would include
a) PlaquesDesk trophies
b) Certificates
c) GiftsCertificates
d) Picture in the webpage
FORMS OF RECOGNITION
Examples of Informal Recognition
1 Team Building Retreats
2 Acknowledgement of DeptDivision goals achieved
3 Project Completion meals
4 Birthday cakes and cards
5 Picnics
6 Staff Appreciation Day
7 Holiday Parties
8 Dress-up Days
9 Corporate Merchandise
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-
60
HUMAN RESOURCE ACCOUNTING
Methods based on Cost
Historical Cost Method
Under this method the cost of acquisition ie selection hiring training costs of employees are capitalised and written off over the expected useful life of the employees In case the personnel leave the company before the anticipated period of service then the unamortised portion of costs remaining in the companyrsquos books is written off against the profit and loss account in that year If the period of service exceeds the anticipated time then amortisation of costs is rescheduled
Replacement Cost Method
Under this method the human resources are valued at their replacement cost ie The monetary implications of replacing existing personnel
Standard Cost Method
Under this method standard costs of recruiting hiring training and developing per grade of employees are determined annually The total standard cost for all personnel of the company is the value of human resources
61
HUMAN RESOURCE ACCOUNTING
bull HR Accounting based on Value
bull Economic Value Method
bull Under this method the net present value of incremental cash flows attributed to human resources is taken as the asset value
62
HUMAN RESOURCE INFORMATION SYSTEMS(HRIS)
bull An information system may be automated or manual and involves collectingprocessing transmitting and disseminating data that represents user information
63
HRIS ndash APPLICATION AND UTILITIES
Personnel administration It will encompass information about each employee
such as name address personal details etc
1048698 Salary administration Generate personnel cost reports conduct lsquowhat if
analysisrsquo provide compensation history
1048698 Leave and absence recording Essentially being able to provide comprehensive
method of tracking absences late coming reports on excess leave availed leave
lapsed
1048698 Skill inventory Recording of acquired skills and monitor the skill database at the
employee and organisational level
1048698 Performance appraisal The system should record individual employee
performance appraisal data such as appraisal ratings due date of appraisal
training needs identified during the appraisal process
1048698 Recruitment Record recruitment cost lead time to fill a vacant position
recruitment methods applicant and resume management
1048698 Career planning HRIS System can provide succession plan reports identifying
employees earmarked for future position
64
HRIS ndash DISADVANTAGES
May be expensive ndash financing the technology
1048698 Thorough understanding of what constitutes quality information for the user
1048698 Computer cannot substitute human beings
HUMAN RESOURCE DEVELOPMENT SYSTEM
66
HRD
HRD play a very crucial role in organization Henery Ford once said ldquotake out my building take out my machines take out all capital but leave my men with me and I will become Henry Ford againrdquo HRD is considered as key to higher productivity better relations and greater profitability for any organization
According to Daftur
ldquoHRD is a system and process concerned with an organized series of learning activities within specified time limits designed to produce behavioral changes in the learner in such a way that it acquires desired level of competence for present or future rolerdquo
67
HRDORGANIZATION ALIGNMENT MODEL
TRAINING AND DEVELOPMENT
69
NEED FOR TRAINING AND DEVELOPMENT
bull Technological advances bull Organizational complexity bull Organizational tenure bull Human relations movement
70
THE TRAINING PROCESS
71
Needs Assessment
72
bull Lecturesbull Audio Visualsbull On-the-job Training (OJT)bull Programmed Instructionbull Computer Assisted Instruction (CAI)bull Simulation
Methods and Techniques of Training
73
Training Methods for Management Development
1048698 Seminars and Conferences
1048698 Case Study
1048698 Role Playing
1048698 Management Games
1048698 Sensitivity Training
74
bull Implementation of the Training Program
bull Evaluation of Training Program
75
Kirkpatrick Model for Evaluating Effectiveness of Training Programs
1 Reactions
2 Learning
3 Behaviors
Results or Return on Investment (ROI)
76
SPECIAL TOPICS IN TRAINING ANDDEVELOPMENT
bull Cross-cultural Training
bull Orientation Training
bull Team-training and Cross-training
bull Diversity Training
COMPENSATION AND REWARDS
78
COMPENSATION OVERVIEW
Compensation is the process of directly and indirectly rewarding employees on a current or deferred basis for their performance of assigned tasks It consists of
1048698 Direct Financial Compensation Wages salaries bonuses commissions
1048698 Indirect Financial Compensation All financial rewards not included in direct compensation (benefits)
1048698 Non-financial Compensation Satisfaction received from the job or from the psychological andor physical environment of the job
JOB EVALUATION TECHNIQUE
The general step-wise procedure for job evaluation is as under
1 Select the group of jobs
2 Study the job (job analysis)
3 Prepare job description ndash approval
4 Device an evaluation plan ndash common characteristicstraits
5 Establish a committee of raters and rateevaluate
6 Group or classify the jobs
7 Convert job grades to money value along with Wage survey
8 Obtain approval from Union and Management
9 Establish a suitable grievance procedure
COMPONENTS OF COMPENSATION SYSTEM
1 Basic WagesSalaries
2 Dearness Allowance
3 Bonus
4 Commissions
5 Mixed Plans
6 Piece Rate Wages
7 Sign on Bonuses
8 Profit Sharing Payments
9 Fringe Benefits
COMPENSATION EQUITY
1048698 External Equity Employees are paid comparably to those who perform similar jobs in other industries
1048698 Internal Equity Employees are paid according to relative value of their jobs within an organisation
1048698 Employee Equity Individuals performing similar jobs for the same firm are rewarded according to factors unique to the employee such as performance level or seniority
1048698 Team Equity More productive teams receive greater rewards than less productive groups
INTERNATIONAL COMPENSATION
Elements of Expatriate Compensation
Basic Pay Amount of money that an expatriate receives from home country Used for
Bonus calculation
Benefits
1048698 One third of compensation
1048698 Extra vacation special leaves air fares for their families for an annual visit home
emergency leaves
1048698 Housing
1048698 Utilities ndash air conditioner bottled water electricity telephone call expenses
1048698 Car ndash car expenses chauffeur hired vehicle
Helping hands servants gardeners security
1048698 Club subscription
1048698 Educational benefits
Allowances
1048698 COLA ndash cost of living between home country and foreign country inflation
1048698 Relocation allowances
1048698 Hardship allowances
1048698 Separation allowances
1048698 Clothing allowances ndash very cold climates
1048698 Home leave allowances
1048698 Spouse assistance allowances
REWARDS SYSTEM
Reward System as Followed by Organisations
1 Incentive and Rewards
2 Competency Related Pay
3 Skill Based Pay
4 Team Based Rewards
5 Profit Sharing
7 Employee Ownership
8 Statutory and Voluntary Benefits
FORMS OF RECOGNITION
Examples of Formal Recognition
1 Milestone Service Anniversary Awards (5101520 25 years of service)
2 Ideas Improvement amp Performance Awards
3 Service Awards
a) Teamworkleadership
b) Customer Service
c) Citizenship
d) Innovation
e) Attendance
4 Awards would include
a) PlaquesDesk trophies
b) Certificates
c) GiftsCertificates
d) Picture in the webpage
FORMS OF RECOGNITION
Examples of Informal Recognition
1 Team Building Retreats
2 Acknowledgement of DeptDivision goals achieved
3 Project Completion meals
4 Birthday cakes and cards
5 Picnics
6 Staff Appreciation Day
7 Holiday Parties
8 Dress-up Days
9 Corporate Merchandise
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-
61
HUMAN RESOURCE ACCOUNTING
bull HR Accounting based on Value
bull Economic Value Method
bull Under this method the net present value of incremental cash flows attributed to human resources is taken as the asset value
62
HUMAN RESOURCE INFORMATION SYSTEMS(HRIS)
bull An information system may be automated or manual and involves collectingprocessing transmitting and disseminating data that represents user information
63
HRIS ndash APPLICATION AND UTILITIES
Personnel administration It will encompass information about each employee
such as name address personal details etc
1048698 Salary administration Generate personnel cost reports conduct lsquowhat if
analysisrsquo provide compensation history
1048698 Leave and absence recording Essentially being able to provide comprehensive
method of tracking absences late coming reports on excess leave availed leave
lapsed
1048698 Skill inventory Recording of acquired skills and monitor the skill database at the
employee and organisational level
1048698 Performance appraisal The system should record individual employee
performance appraisal data such as appraisal ratings due date of appraisal
training needs identified during the appraisal process
1048698 Recruitment Record recruitment cost lead time to fill a vacant position
recruitment methods applicant and resume management
1048698 Career planning HRIS System can provide succession plan reports identifying
employees earmarked for future position
64
HRIS ndash DISADVANTAGES
May be expensive ndash financing the technology
1048698 Thorough understanding of what constitutes quality information for the user
1048698 Computer cannot substitute human beings
HUMAN RESOURCE DEVELOPMENT SYSTEM
66
HRD
HRD play a very crucial role in organization Henery Ford once said ldquotake out my building take out my machines take out all capital but leave my men with me and I will become Henry Ford againrdquo HRD is considered as key to higher productivity better relations and greater profitability for any organization
According to Daftur
ldquoHRD is a system and process concerned with an organized series of learning activities within specified time limits designed to produce behavioral changes in the learner in such a way that it acquires desired level of competence for present or future rolerdquo
67
HRDORGANIZATION ALIGNMENT MODEL
TRAINING AND DEVELOPMENT
69
NEED FOR TRAINING AND DEVELOPMENT
bull Technological advances bull Organizational complexity bull Organizational tenure bull Human relations movement
70
THE TRAINING PROCESS
71
Needs Assessment
72
bull Lecturesbull Audio Visualsbull On-the-job Training (OJT)bull Programmed Instructionbull Computer Assisted Instruction (CAI)bull Simulation
Methods and Techniques of Training
73
Training Methods for Management Development
1048698 Seminars and Conferences
1048698 Case Study
1048698 Role Playing
1048698 Management Games
1048698 Sensitivity Training
74
bull Implementation of the Training Program
bull Evaluation of Training Program
75
Kirkpatrick Model for Evaluating Effectiveness of Training Programs
1 Reactions
2 Learning
3 Behaviors
Results or Return on Investment (ROI)
76
SPECIAL TOPICS IN TRAINING ANDDEVELOPMENT
bull Cross-cultural Training
bull Orientation Training
bull Team-training and Cross-training
bull Diversity Training
COMPENSATION AND REWARDS
78
COMPENSATION OVERVIEW
Compensation is the process of directly and indirectly rewarding employees on a current or deferred basis for their performance of assigned tasks It consists of
1048698 Direct Financial Compensation Wages salaries bonuses commissions
1048698 Indirect Financial Compensation All financial rewards not included in direct compensation (benefits)
1048698 Non-financial Compensation Satisfaction received from the job or from the psychological andor physical environment of the job
JOB EVALUATION TECHNIQUE
The general step-wise procedure for job evaluation is as under
1 Select the group of jobs
2 Study the job (job analysis)
3 Prepare job description ndash approval
4 Device an evaluation plan ndash common characteristicstraits
5 Establish a committee of raters and rateevaluate
6 Group or classify the jobs
7 Convert job grades to money value along with Wage survey
8 Obtain approval from Union and Management
9 Establish a suitable grievance procedure
COMPONENTS OF COMPENSATION SYSTEM
1 Basic WagesSalaries
2 Dearness Allowance
3 Bonus
4 Commissions
5 Mixed Plans
6 Piece Rate Wages
7 Sign on Bonuses
8 Profit Sharing Payments
9 Fringe Benefits
COMPENSATION EQUITY
1048698 External Equity Employees are paid comparably to those who perform similar jobs in other industries
1048698 Internal Equity Employees are paid according to relative value of their jobs within an organisation
1048698 Employee Equity Individuals performing similar jobs for the same firm are rewarded according to factors unique to the employee such as performance level or seniority
1048698 Team Equity More productive teams receive greater rewards than less productive groups
INTERNATIONAL COMPENSATION
Elements of Expatriate Compensation
Basic Pay Amount of money that an expatriate receives from home country Used for
Bonus calculation
Benefits
1048698 One third of compensation
1048698 Extra vacation special leaves air fares for their families for an annual visit home
emergency leaves
1048698 Housing
1048698 Utilities ndash air conditioner bottled water electricity telephone call expenses
1048698 Car ndash car expenses chauffeur hired vehicle
Helping hands servants gardeners security
1048698 Club subscription
1048698 Educational benefits
Allowances
1048698 COLA ndash cost of living between home country and foreign country inflation
1048698 Relocation allowances
1048698 Hardship allowances
1048698 Separation allowances
1048698 Clothing allowances ndash very cold climates
1048698 Home leave allowances
1048698 Spouse assistance allowances
REWARDS SYSTEM
Reward System as Followed by Organisations
1 Incentive and Rewards
2 Competency Related Pay
3 Skill Based Pay
4 Team Based Rewards
5 Profit Sharing
7 Employee Ownership
8 Statutory and Voluntary Benefits
FORMS OF RECOGNITION
Examples of Formal Recognition
1 Milestone Service Anniversary Awards (5101520 25 years of service)
2 Ideas Improvement amp Performance Awards
3 Service Awards
a) Teamworkleadership
b) Customer Service
c) Citizenship
d) Innovation
e) Attendance
4 Awards would include
a) PlaquesDesk trophies
b) Certificates
c) GiftsCertificates
d) Picture in the webpage
FORMS OF RECOGNITION
Examples of Informal Recognition
1 Team Building Retreats
2 Acknowledgement of DeptDivision goals achieved
3 Project Completion meals
4 Birthday cakes and cards
5 Picnics
6 Staff Appreciation Day
7 Holiday Parties
8 Dress-up Days
9 Corporate Merchandise
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-
62
HUMAN RESOURCE INFORMATION SYSTEMS(HRIS)
bull An information system may be automated or manual and involves collectingprocessing transmitting and disseminating data that represents user information
63
HRIS ndash APPLICATION AND UTILITIES
Personnel administration It will encompass information about each employee
such as name address personal details etc
1048698 Salary administration Generate personnel cost reports conduct lsquowhat if
analysisrsquo provide compensation history
1048698 Leave and absence recording Essentially being able to provide comprehensive
method of tracking absences late coming reports on excess leave availed leave
lapsed
1048698 Skill inventory Recording of acquired skills and monitor the skill database at the
employee and organisational level
1048698 Performance appraisal The system should record individual employee
performance appraisal data such as appraisal ratings due date of appraisal
training needs identified during the appraisal process
1048698 Recruitment Record recruitment cost lead time to fill a vacant position
recruitment methods applicant and resume management
1048698 Career planning HRIS System can provide succession plan reports identifying
employees earmarked for future position
64
HRIS ndash DISADVANTAGES
May be expensive ndash financing the technology
1048698 Thorough understanding of what constitutes quality information for the user
1048698 Computer cannot substitute human beings
HUMAN RESOURCE DEVELOPMENT SYSTEM
66
HRD
HRD play a very crucial role in organization Henery Ford once said ldquotake out my building take out my machines take out all capital but leave my men with me and I will become Henry Ford againrdquo HRD is considered as key to higher productivity better relations and greater profitability for any organization
According to Daftur
ldquoHRD is a system and process concerned with an organized series of learning activities within specified time limits designed to produce behavioral changes in the learner in such a way that it acquires desired level of competence for present or future rolerdquo
67
HRDORGANIZATION ALIGNMENT MODEL
TRAINING AND DEVELOPMENT
69
NEED FOR TRAINING AND DEVELOPMENT
bull Technological advances bull Organizational complexity bull Organizational tenure bull Human relations movement
70
THE TRAINING PROCESS
71
Needs Assessment
72
bull Lecturesbull Audio Visualsbull On-the-job Training (OJT)bull Programmed Instructionbull Computer Assisted Instruction (CAI)bull Simulation
Methods and Techniques of Training
73
Training Methods for Management Development
1048698 Seminars and Conferences
1048698 Case Study
1048698 Role Playing
1048698 Management Games
1048698 Sensitivity Training
74
bull Implementation of the Training Program
bull Evaluation of Training Program
75
Kirkpatrick Model for Evaluating Effectiveness of Training Programs
1 Reactions
2 Learning
3 Behaviors
Results or Return on Investment (ROI)
76
SPECIAL TOPICS IN TRAINING ANDDEVELOPMENT
bull Cross-cultural Training
bull Orientation Training
bull Team-training and Cross-training
bull Diversity Training
COMPENSATION AND REWARDS
78
COMPENSATION OVERVIEW
Compensation is the process of directly and indirectly rewarding employees on a current or deferred basis for their performance of assigned tasks It consists of
1048698 Direct Financial Compensation Wages salaries bonuses commissions
1048698 Indirect Financial Compensation All financial rewards not included in direct compensation (benefits)
1048698 Non-financial Compensation Satisfaction received from the job or from the psychological andor physical environment of the job
JOB EVALUATION TECHNIQUE
The general step-wise procedure for job evaluation is as under
1 Select the group of jobs
2 Study the job (job analysis)
3 Prepare job description ndash approval
4 Device an evaluation plan ndash common characteristicstraits
5 Establish a committee of raters and rateevaluate
6 Group or classify the jobs
7 Convert job grades to money value along with Wage survey
8 Obtain approval from Union and Management
9 Establish a suitable grievance procedure
COMPONENTS OF COMPENSATION SYSTEM
1 Basic WagesSalaries
2 Dearness Allowance
3 Bonus
4 Commissions
5 Mixed Plans
6 Piece Rate Wages
7 Sign on Bonuses
8 Profit Sharing Payments
9 Fringe Benefits
COMPENSATION EQUITY
1048698 External Equity Employees are paid comparably to those who perform similar jobs in other industries
1048698 Internal Equity Employees are paid according to relative value of their jobs within an organisation
1048698 Employee Equity Individuals performing similar jobs for the same firm are rewarded according to factors unique to the employee such as performance level or seniority
1048698 Team Equity More productive teams receive greater rewards than less productive groups
INTERNATIONAL COMPENSATION
Elements of Expatriate Compensation
Basic Pay Amount of money that an expatriate receives from home country Used for
Bonus calculation
Benefits
1048698 One third of compensation
1048698 Extra vacation special leaves air fares for their families for an annual visit home
emergency leaves
1048698 Housing
1048698 Utilities ndash air conditioner bottled water electricity telephone call expenses
1048698 Car ndash car expenses chauffeur hired vehicle
Helping hands servants gardeners security
1048698 Club subscription
1048698 Educational benefits
Allowances
1048698 COLA ndash cost of living between home country and foreign country inflation
1048698 Relocation allowances
1048698 Hardship allowances
1048698 Separation allowances
1048698 Clothing allowances ndash very cold climates
1048698 Home leave allowances
1048698 Spouse assistance allowances
REWARDS SYSTEM
Reward System as Followed by Organisations
1 Incentive and Rewards
2 Competency Related Pay
3 Skill Based Pay
4 Team Based Rewards
5 Profit Sharing
7 Employee Ownership
8 Statutory and Voluntary Benefits
FORMS OF RECOGNITION
Examples of Formal Recognition
1 Milestone Service Anniversary Awards (5101520 25 years of service)
2 Ideas Improvement amp Performance Awards
3 Service Awards
a) Teamworkleadership
b) Customer Service
c) Citizenship
d) Innovation
e) Attendance
4 Awards would include
a) PlaquesDesk trophies
b) Certificates
c) GiftsCertificates
d) Picture in the webpage
FORMS OF RECOGNITION
Examples of Informal Recognition
1 Team Building Retreats
2 Acknowledgement of DeptDivision goals achieved
3 Project Completion meals
4 Birthday cakes and cards
5 Picnics
6 Staff Appreciation Day
7 Holiday Parties
8 Dress-up Days
9 Corporate Merchandise
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-
63
HRIS ndash APPLICATION AND UTILITIES
Personnel administration It will encompass information about each employee
such as name address personal details etc
1048698 Salary administration Generate personnel cost reports conduct lsquowhat if
analysisrsquo provide compensation history
1048698 Leave and absence recording Essentially being able to provide comprehensive
method of tracking absences late coming reports on excess leave availed leave
lapsed
1048698 Skill inventory Recording of acquired skills and monitor the skill database at the
employee and organisational level
1048698 Performance appraisal The system should record individual employee
performance appraisal data such as appraisal ratings due date of appraisal
training needs identified during the appraisal process
1048698 Recruitment Record recruitment cost lead time to fill a vacant position
recruitment methods applicant and resume management
1048698 Career planning HRIS System can provide succession plan reports identifying
employees earmarked for future position
64
HRIS ndash DISADVANTAGES
May be expensive ndash financing the technology
1048698 Thorough understanding of what constitutes quality information for the user
1048698 Computer cannot substitute human beings
HUMAN RESOURCE DEVELOPMENT SYSTEM
66
HRD
HRD play a very crucial role in organization Henery Ford once said ldquotake out my building take out my machines take out all capital but leave my men with me and I will become Henry Ford againrdquo HRD is considered as key to higher productivity better relations and greater profitability for any organization
According to Daftur
ldquoHRD is a system and process concerned with an organized series of learning activities within specified time limits designed to produce behavioral changes in the learner in such a way that it acquires desired level of competence for present or future rolerdquo
67
HRDORGANIZATION ALIGNMENT MODEL
TRAINING AND DEVELOPMENT
69
NEED FOR TRAINING AND DEVELOPMENT
bull Technological advances bull Organizational complexity bull Organizational tenure bull Human relations movement
70
THE TRAINING PROCESS
71
Needs Assessment
72
bull Lecturesbull Audio Visualsbull On-the-job Training (OJT)bull Programmed Instructionbull Computer Assisted Instruction (CAI)bull Simulation
Methods and Techniques of Training
73
Training Methods for Management Development
1048698 Seminars and Conferences
1048698 Case Study
1048698 Role Playing
1048698 Management Games
1048698 Sensitivity Training
74
bull Implementation of the Training Program
bull Evaluation of Training Program
75
Kirkpatrick Model for Evaluating Effectiveness of Training Programs
1 Reactions
2 Learning
3 Behaviors
Results or Return on Investment (ROI)
76
SPECIAL TOPICS IN TRAINING ANDDEVELOPMENT
bull Cross-cultural Training
bull Orientation Training
bull Team-training and Cross-training
bull Diversity Training
COMPENSATION AND REWARDS
78
COMPENSATION OVERVIEW
Compensation is the process of directly and indirectly rewarding employees on a current or deferred basis for their performance of assigned tasks It consists of
1048698 Direct Financial Compensation Wages salaries bonuses commissions
1048698 Indirect Financial Compensation All financial rewards not included in direct compensation (benefits)
1048698 Non-financial Compensation Satisfaction received from the job or from the psychological andor physical environment of the job
JOB EVALUATION TECHNIQUE
The general step-wise procedure for job evaluation is as under
1 Select the group of jobs
2 Study the job (job analysis)
3 Prepare job description ndash approval
4 Device an evaluation plan ndash common characteristicstraits
5 Establish a committee of raters and rateevaluate
6 Group or classify the jobs
7 Convert job grades to money value along with Wage survey
8 Obtain approval from Union and Management
9 Establish a suitable grievance procedure
COMPONENTS OF COMPENSATION SYSTEM
1 Basic WagesSalaries
2 Dearness Allowance
3 Bonus
4 Commissions
5 Mixed Plans
6 Piece Rate Wages
7 Sign on Bonuses
8 Profit Sharing Payments
9 Fringe Benefits
COMPENSATION EQUITY
1048698 External Equity Employees are paid comparably to those who perform similar jobs in other industries
1048698 Internal Equity Employees are paid according to relative value of their jobs within an organisation
1048698 Employee Equity Individuals performing similar jobs for the same firm are rewarded according to factors unique to the employee such as performance level or seniority
1048698 Team Equity More productive teams receive greater rewards than less productive groups
INTERNATIONAL COMPENSATION
Elements of Expatriate Compensation
Basic Pay Amount of money that an expatriate receives from home country Used for
Bonus calculation
Benefits
1048698 One third of compensation
1048698 Extra vacation special leaves air fares for their families for an annual visit home
emergency leaves
1048698 Housing
1048698 Utilities ndash air conditioner bottled water electricity telephone call expenses
1048698 Car ndash car expenses chauffeur hired vehicle
Helping hands servants gardeners security
1048698 Club subscription
1048698 Educational benefits
Allowances
1048698 COLA ndash cost of living between home country and foreign country inflation
1048698 Relocation allowances
1048698 Hardship allowances
1048698 Separation allowances
1048698 Clothing allowances ndash very cold climates
1048698 Home leave allowances
1048698 Spouse assistance allowances
REWARDS SYSTEM
Reward System as Followed by Organisations
1 Incentive and Rewards
2 Competency Related Pay
3 Skill Based Pay
4 Team Based Rewards
5 Profit Sharing
7 Employee Ownership
8 Statutory and Voluntary Benefits
FORMS OF RECOGNITION
Examples of Formal Recognition
1 Milestone Service Anniversary Awards (5101520 25 years of service)
2 Ideas Improvement amp Performance Awards
3 Service Awards
a) Teamworkleadership
b) Customer Service
c) Citizenship
d) Innovation
e) Attendance
4 Awards would include
a) PlaquesDesk trophies
b) Certificates
c) GiftsCertificates
d) Picture in the webpage
FORMS OF RECOGNITION
Examples of Informal Recognition
1 Team Building Retreats
2 Acknowledgement of DeptDivision goals achieved
3 Project Completion meals
4 Birthday cakes and cards
5 Picnics
6 Staff Appreciation Day
7 Holiday Parties
8 Dress-up Days
9 Corporate Merchandise
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-
64
HRIS ndash DISADVANTAGES
May be expensive ndash financing the technology
1048698 Thorough understanding of what constitutes quality information for the user
1048698 Computer cannot substitute human beings
HUMAN RESOURCE DEVELOPMENT SYSTEM
66
HRD
HRD play a very crucial role in organization Henery Ford once said ldquotake out my building take out my machines take out all capital but leave my men with me and I will become Henry Ford againrdquo HRD is considered as key to higher productivity better relations and greater profitability for any organization
According to Daftur
ldquoHRD is a system and process concerned with an organized series of learning activities within specified time limits designed to produce behavioral changes in the learner in such a way that it acquires desired level of competence for present or future rolerdquo
67
HRDORGANIZATION ALIGNMENT MODEL
TRAINING AND DEVELOPMENT
69
NEED FOR TRAINING AND DEVELOPMENT
bull Technological advances bull Organizational complexity bull Organizational tenure bull Human relations movement
70
THE TRAINING PROCESS
71
Needs Assessment
72
bull Lecturesbull Audio Visualsbull On-the-job Training (OJT)bull Programmed Instructionbull Computer Assisted Instruction (CAI)bull Simulation
Methods and Techniques of Training
73
Training Methods for Management Development
1048698 Seminars and Conferences
1048698 Case Study
1048698 Role Playing
1048698 Management Games
1048698 Sensitivity Training
74
bull Implementation of the Training Program
bull Evaluation of Training Program
75
Kirkpatrick Model for Evaluating Effectiveness of Training Programs
1 Reactions
2 Learning
3 Behaviors
Results or Return on Investment (ROI)
76
SPECIAL TOPICS IN TRAINING ANDDEVELOPMENT
bull Cross-cultural Training
bull Orientation Training
bull Team-training and Cross-training
bull Diversity Training
COMPENSATION AND REWARDS
78
COMPENSATION OVERVIEW
Compensation is the process of directly and indirectly rewarding employees on a current or deferred basis for their performance of assigned tasks It consists of
1048698 Direct Financial Compensation Wages salaries bonuses commissions
1048698 Indirect Financial Compensation All financial rewards not included in direct compensation (benefits)
1048698 Non-financial Compensation Satisfaction received from the job or from the psychological andor physical environment of the job
JOB EVALUATION TECHNIQUE
The general step-wise procedure for job evaluation is as under
1 Select the group of jobs
2 Study the job (job analysis)
3 Prepare job description ndash approval
4 Device an evaluation plan ndash common characteristicstraits
5 Establish a committee of raters and rateevaluate
6 Group or classify the jobs
7 Convert job grades to money value along with Wage survey
8 Obtain approval from Union and Management
9 Establish a suitable grievance procedure
COMPONENTS OF COMPENSATION SYSTEM
1 Basic WagesSalaries
2 Dearness Allowance
3 Bonus
4 Commissions
5 Mixed Plans
6 Piece Rate Wages
7 Sign on Bonuses
8 Profit Sharing Payments
9 Fringe Benefits
COMPENSATION EQUITY
1048698 External Equity Employees are paid comparably to those who perform similar jobs in other industries
1048698 Internal Equity Employees are paid according to relative value of their jobs within an organisation
1048698 Employee Equity Individuals performing similar jobs for the same firm are rewarded according to factors unique to the employee such as performance level or seniority
1048698 Team Equity More productive teams receive greater rewards than less productive groups
INTERNATIONAL COMPENSATION
Elements of Expatriate Compensation
Basic Pay Amount of money that an expatriate receives from home country Used for
Bonus calculation
Benefits
1048698 One third of compensation
1048698 Extra vacation special leaves air fares for their families for an annual visit home
emergency leaves
1048698 Housing
1048698 Utilities ndash air conditioner bottled water electricity telephone call expenses
1048698 Car ndash car expenses chauffeur hired vehicle
Helping hands servants gardeners security
1048698 Club subscription
1048698 Educational benefits
Allowances
1048698 COLA ndash cost of living between home country and foreign country inflation
1048698 Relocation allowances
1048698 Hardship allowances
1048698 Separation allowances
1048698 Clothing allowances ndash very cold climates
1048698 Home leave allowances
1048698 Spouse assistance allowances
REWARDS SYSTEM
Reward System as Followed by Organisations
1 Incentive and Rewards
2 Competency Related Pay
3 Skill Based Pay
4 Team Based Rewards
5 Profit Sharing
7 Employee Ownership
8 Statutory and Voluntary Benefits
FORMS OF RECOGNITION
Examples of Formal Recognition
1 Milestone Service Anniversary Awards (5101520 25 years of service)
2 Ideas Improvement amp Performance Awards
3 Service Awards
a) Teamworkleadership
b) Customer Service
c) Citizenship
d) Innovation
e) Attendance
4 Awards would include
a) PlaquesDesk trophies
b) Certificates
c) GiftsCertificates
d) Picture in the webpage
FORMS OF RECOGNITION
Examples of Informal Recognition
1 Team Building Retreats
2 Acknowledgement of DeptDivision goals achieved
3 Project Completion meals
4 Birthday cakes and cards
5 Picnics
6 Staff Appreciation Day
7 Holiday Parties
8 Dress-up Days
9 Corporate Merchandise
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-
HUMAN RESOURCE DEVELOPMENT SYSTEM
66
HRD
HRD play a very crucial role in organization Henery Ford once said ldquotake out my building take out my machines take out all capital but leave my men with me and I will become Henry Ford againrdquo HRD is considered as key to higher productivity better relations and greater profitability for any organization
According to Daftur
ldquoHRD is a system and process concerned with an organized series of learning activities within specified time limits designed to produce behavioral changes in the learner in such a way that it acquires desired level of competence for present or future rolerdquo
67
HRDORGANIZATION ALIGNMENT MODEL
TRAINING AND DEVELOPMENT
69
NEED FOR TRAINING AND DEVELOPMENT
bull Technological advances bull Organizational complexity bull Organizational tenure bull Human relations movement
70
THE TRAINING PROCESS
71
Needs Assessment
72
bull Lecturesbull Audio Visualsbull On-the-job Training (OJT)bull Programmed Instructionbull Computer Assisted Instruction (CAI)bull Simulation
Methods and Techniques of Training
73
Training Methods for Management Development
1048698 Seminars and Conferences
1048698 Case Study
1048698 Role Playing
1048698 Management Games
1048698 Sensitivity Training
74
bull Implementation of the Training Program
bull Evaluation of Training Program
75
Kirkpatrick Model for Evaluating Effectiveness of Training Programs
1 Reactions
2 Learning
3 Behaviors
Results or Return on Investment (ROI)
76
SPECIAL TOPICS IN TRAINING ANDDEVELOPMENT
bull Cross-cultural Training
bull Orientation Training
bull Team-training and Cross-training
bull Diversity Training
COMPENSATION AND REWARDS
78
COMPENSATION OVERVIEW
Compensation is the process of directly and indirectly rewarding employees on a current or deferred basis for their performance of assigned tasks It consists of
1048698 Direct Financial Compensation Wages salaries bonuses commissions
1048698 Indirect Financial Compensation All financial rewards not included in direct compensation (benefits)
1048698 Non-financial Compensation Satisfaction received from the job or from the psychological andor physical environment of the job
JOB EVALUATION TECHNIQUE
The general step-wise procedure for job evaluation is as under
1 Select the group of jobs
2 Study the job (job analysis)
3 Prepare job description ndash approval
4 Device an evaluation plan ndash common characteristicstraits
5 Establish a committee of raters and rateevaluate
6 Group or classify the jobs
7 Convert job grades to money value along with Wage survey
8 Obtain approval from Union and Management
9 Establish a suitable grievance procedure
COMPONENTS OF COMPENSATION SYSTEM
1 Basic WagesSalaries
2 Dearness Allowance
3 Bonus
4 Commissions
5 Mixed Plans
6 Piece Rate Wages
7 Sign on Bonuses
8 Profit Sharing Payments
9 Fringe Benefits
COMPENSATION EQUITY
1048698 External Equity Employees are paid comparably to those who perform similar jobs in other industries
1048698 Internal Equity Employees are paid according to relative value of their jobs within an organisation
1048698 Employee Equity Individuals performing similar jobs for the same firm are rewarded according to factors unique to the employee such as performance level or seniority
1048698 Team Equity More productive teams receive greater rewards than less productive groups
INTERNATIONAL COMPENSATION
Elements of Expatriate Compensation
Basic Pay Amount of money that an expatriate receives from home country Used for
Bonus calculation
Benefits
1048698 One third of compensation
1048698 Extra vacation special leaves air fares for their families for an annual visit home
emergency leaves
1048698 Housing
1048698 Utilities ndash air conditioner bottled water electricity telephone call expenses
1048698 Car ndash car expenses chauffeur hired vehicle
Helping hands servants gardeners security
1048698 Club subscription
1048698 Educational benefits
Allowances
1048698 COLA ndash cost of living between home country and foreign country inflation
1048698 Relocation allowances
1048698 Hardship allowances
1048698 Separation allowances
1048698 Clothing allowances ndash very cold climates
1048698 Home leave allowances
1048698 Spouse assistance allowances
REWARDS SYSTEM
Reward System as Followed by Organisations
1 Incentive and Rewards
2 Competency Related Pay
3 Skill Based Pay
4 Team Based Rewards
5 Profit Sharing
7 Employee Ownership
8 Statutory and Voluntary Benefits
FORMS OF RECOGNITION
Examples of Formal Recognition
1 Milestone Service Anniversary Awards (5101520 25 years of service)
2 Ideas Improvement amp Performance Awards
3 Service Awards
a) Teamworkleadership
b) Customer Service
c) Citizenship
d) Innovation
e) Attendance
4 Awards would include
a) PlaquesDesk trophies
b) Certificates
c) GiftsCertificates
d) Picture in the webpage
FORMS OF RECOGNITION
Examples of Informal Recognition
1 Team Building Retreats
2 Acknowledgement of DeptDivision goals achieved
3 Project Completion meals
4 Birthday cakes and cards
5 Picnics
6 Staff Appreciation Day
7 Holiday Parties
8 Dress-up Days
9 Corporate Merchandise
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-
66
HRD
HRD play a very crucial role in organization Henery Ford once said ldquotake out my building take out my machines take out all capital but leave my men with me and I will become Henry Ford againrdquo HRD is considered as key to higher productivity better relations and greater profitability for any organization
According to Daftur
ldquoHRD is a system and process concerned with an organized series of learning activities within specified time limits designed to produce behavioral changes in the learner in such a way that it acquires desired level of competence for present or future rolerdquo
67
HRDORGANIZATION ALIGNMENT MODEL
TRAINING AND DEVELOPMENT
69
NEED FOR TRAINING AND DEVELOPMENT
bull Technological advances bull Organizational complexity bull Organizational tenure bull Human relations movement
70
THE TRAINING PROCESS
71
Needs Assessment
72
bull Lecturesbull Audio Visualsbull On-the-job Training (OJT)bull Programmed Instructionbull Computer Assisted Instruction (CAI)bull Simulation
Methods and Techniques of Training
73
Training Methods for Management Development
1048698 Seminars and Conferences
1048698 Case Study
1048698 Role Playing
1048698 Management Games
1048698 Sensitivity Training
74
bull Implementation of the Training Program
bull Evaluation of Training Program
75
Kirkpatrick Model for Evaluating Effectiveness of Training Programs
1 Reactions
2 Learning
3 Behaviors
Results or Return on Investment (ROI)
76
SPECIAL TOPICS IN TRAINING ANDDEVELOPMENT
bull Cross-cultural Training
bull Orientation Training
bull Team-training and Cross-training
bull Diversity Training
COMPENSATION AND REWARDS
78
COMPENSATION OVERVIEW
Compensation is the process of directly and indirectly rewarding employees on a current or deferred basis for their performance of assigned tasks It consists of
1048698 Direct Financial Compensation Wages salaries bonuses commissions
1048698 Indirect Financial Compensation All financial rewards not included in direct compensation (benefits)
1048698 Non-financial Compensation Satisfaction received from the job or from the psychological andor physical environment of the job
JOB EVALUATION TECHNIQUE
The general step-wise procedure for job evaluation is as under
1 Select the group of jobs
2 Study the job (job analysis)
3 Prepare job description ndash approval
4 Device an evaluation plan ndash common characteristicstraits
5 Establish a committee of raters and rateevaluate
6 Group or classify the jobs
7 Convert job grades to money value along with Wage survey
8 Obtain approval from Union and Management
9 Establish a suitable grievance procedure
COMPONENTS OF COMPENSATION SYSTEM
1 Basic WagesSalaries
2 Dearness Allowance
3 Bonus
4 Commissions
5 Mixed Plans
6 Piece Rate Wages
7 Sign on Bonuses
8 Profit Sharing Payments
9 Fringe Benefits
COMPENSATION EQUITY
1048698 External Equity Employees are paid comparably to those who perform similar jobs in other industries
1048698 Internal Equity Employees are paid according to relative value of their jobs within an organisation
1048698 Employee Equity Individuals performing similar jobs for the same firm are rewarded according to factors unique to the employee such as performance level or seniority
1048698 Team Equity More productive teams receive greater rewards than less productive groups
INTERNATIONAL COMPENSATION
Elements of Expatriate Compensation
Basic Pay Amount of money that an expatriate receives from home country Used for
Bonus calculation
Benefits
1048698 One third of compensation
1048698 Extra vacation special leaves air fares for their families for an annual visit home
emergency leaves
1048698 Housing
1048698 Utilities ndash air conditioner bottled water electricity telephone call expenses
1048698 Car ndash car expenses chauffeur hired vehicle
Helping hands servants gardeners security
1048698 Club subscription
1048698 Educational benefits
Allowances
1048698 COLA ndash cost of living between home country and foreign country inflation
1048698 Relocation allowances
1048698 Hardship allowances
1048698 Separation allowances
1048698 Clothing allowances ndash very cold climates
1048698 Home leave allowances
1048698 Spouse assistance allowances
REWARDS SYSTEM
Reward System as Followed by Organisations
1 Incentive and Rewards
2 Competency Related Pay
3 Skill Based Pay
4 Team Based Rewards
5 Profit Sharing
7 Employee Ownership
8 Statutory and Voluntary Benefits
FORMS OF RECOGNITION
Examples of Formal Recognition
1 Milestone Service Anniversary Awards (5101520 25 years of service)
2 Ideas Improvement amp Performance Awards
3 Service Awards
a) Teamworkleadership
b) Customer Service
c) Citizenship
d) Innovation
e) Attendance
4 Awards would include
a) PlaquesDesk trophies
b) Certificates
c) GiftsCertificates
d) Picture in the webpage
FORMS OF RECOGNITION
Examples of Informal Recognition
1 Team Building Retreats
2 Acknowledgement of DeptDivision goals achieved
3 Project Completion meals
4 Birthday cakes and cards
5 Picnics
6 Staff Appreciation Day
7 Holiday Parties
8 Dress-up Days
9 Corporate Merchandise
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-
67
HRDORGANIZATION ALIGNMENT MODEL
TRAINING AND DEVELOPMENT
69
NEED FOR TRAINING AND DEVELOPMENT
bull Technological advances bull Organizational complexity bull Organizational tenure bull Human relations movement
70
THE TRAINING PROCESS
71
Needs Assessment
72
bull Lecturesbull Audio Visualsbull On-the-job Training (OJT)bull Programmed Instructionbull Computer Assisted Instruction (CAI)bull Simulation
Methods and Techniques of Training
73
Training Methods for Management Development
1048698 Seminars and Conferences
1048698 Case Study
1048698 Role Playing
1048698 Management Games
1048698 Sensitivity Training
74
bull Implementation of the Training Program
bull Evaluation of Training Program
75
Kirkpatrick Model for Evaluating Effectiveness of Training Programs
1 Reactions
2 Learning
3 Behaviors
Results or Return on Investment (ROI)
76
SPECIAL TOPICS IN TRAINING ANDDEVELOPMENT
bull Cross-cultural Training
bull Orientation Training
bull Team-training and Cross-training
bull Diversity Training
COMPENSATION AND REWARDS
78
COMPENSATION OVERVIEW
Compensation is the process of directly and indirectly rewarding employees on a current or deferred basis for their performance of assigned tasks It consists of
1048698 Direct Financial Compensation Wages salaries bonuses commissions
1048698 Indirect Financial Compensation All financial rewards not included in direct compensation (benefits)
1048698 Non-financial Compensation Satisfaction received from the job or from the psychological andor physical environment of the job
JOB EVALUATION TECHNIQUE
The general step-wise procedure for job evaluation is as under
1 Select the group of jobs
2 Study the job (job analysis)
3 Prepare job description ndash approval
4 Device an evaluation plan ndash common characteristicstraits
5 Establish a committee of raters and rateevaluate
6 Group or classify the jobs
7 Convert job grades to money value along with Wage survey
8 Obtain approval from Union and Management
9 Establish a suitable grievance procedure
COMPONENTS OF COMPENSATION SYSTEM
1 Basic WagesSalaries
2 Dearness Allowance
3 Bonus
4 Commissions
5 Mixed Plans
6 Piece Rate Wages
7 Sign on Bonuses
8 Profit Sharing Payments
9 Fringe Benefits
COMPENSATION EQUITY
1048698 External Equity Employees are paid comparably to those who perform similar jobs in other industries
1048698 Internal Equity Employees are paid according to relative value of their jobs within an organisation
1048698 Employee Equity Individuals performing similar jobs for the same firm are rewarded according to factors unique to the employee such as performance level or seniority
1048698 Team Equity More productive teams receive greater rewards than less productive groups
INTERNATIONAL COMPENSATION
Elements of Expatriate Compensation
Basic Pay Amount of money that an expatriate receives from home country Used for
Bonus calculation
Benefits
1048698 One third of compensation
1048698 Extra vacation special leaves air fares for their families for an annual visit home
emergency leaves
1048698 Housing
1048698 Utilities ndash air conditioner bottled water electricity telephone call expenses
1048698 Car ndash car expenses chauffeur hired vehicle
Helping hands servants gardeners security
1048698 Club subscription
1048698 Educational benefits
Allowances
1048698 COLA ndash cost of living between home country and foreign country inflation
1048698 Relocation allowances
1048698 Hardship allowances
1048698 Separation allowances
1048698 Clothing allowances ndash very cold climates
1048698 Home leave allowances
1048698 Spouse assistance allowances
REWARDS SYSTEM
Reward System as Followed by Organisations
1 Incentive and Rewards
2 Competency Related Pay
3 Skill Based Pay
4 Team Based Rewards
5 Profit Sharing
7 Employee Ownership
8 Statutory and Voluntary Benefits
FORMS OF RECOGNITION
Examples of Formal Recognition
1 Milestone Service Anniversary Awards (5101520 25 years of service)
2 Ideas Improvement amp Performance Awards
3 Service Awards
a) Teamworkleadership
b) Customer Service
c) Citizenship
d) Innovation
e) Attendance
4 Awards would include
a) PlaquesDesk trophies
b) Certificates
c) GiftsCertificates
d) Picture in the webpage
FORMS OF RECOGNITION
Examples of Informal Recognition
1 Team Building Retreats
2 Acknowledgement of DeptDivision goals achieved
3 Project Completion meals
4 Birthday cakes and cards
5 Picnics
6 Staff Appreciation Day
7 Holiday Parties
8 Dress-up Days
9 Corporate Merchandise
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-
TRAINING AND DEVELOPMENT
69
NEED FOR TRAINING AND DEVELOPMENT
bull Technological advances bull Organizational complexity bull Organizational tenure bull Human relations movement
70
THE TRAINING PROCESS
71
Needs Assessment
72
bull Lecturesbull Audio Visualsbull On-the-job Training (OJT)bull Programmed Instructionbull Computer Assisted Instruction (CAI)bull Simulation
Methods and Techniques of Training
73
Training Methods for Management Development
1048698 Seminars and Conferences
1048698 Case Study
1048698 Role Playing
1048698 Management Games
1048698 Sensitivity Training
74
bull Implementation of the Training Program
bull Evaluation of Training Program
75
Kirkpatrick Model for Evaluating Effectiveness of Training Programs
1 Reactions
2 Learning
3 Behaviors
Results or Return on Investment (ROI)
76
SPECIAL TOPICS IN TRAINING ANDDEVELOPMENT
bull Cross-cultural Training
bull Orientation Training
bull Team-training and Cross-training
bull Diversity Training
COMPENSATION AND REWARDS
78
COMPENSATION OVERVIEW
Compensation is the process of directly and indirectly rewarding employees on a current or deferred basis for their performance of assigned tasks It consists of
1048698 Direct Financial Compensation Wages salaries bonuses commissions
1048698 Indirect Financial Compensation All financial rewards not included in direct compensation (benefits)
1048698 Non-financial Compensation Satisfaction received from the job or from the psychological andor physical environment of the job
JOB EVALUATION TECHNIQUE
The general step-wise procedure for job evaluation is as under
1 Select the group of jobs
2 Study the job (job analysis)
3 Prepare job description ndash approval
4 Device an evaluation plan ndash common characteristicstraits
5 Establish a committee of raters and rateevaluate
6 Group or classify the jobs
7 Convert job grades to money value along with Wage survey
8 Obtain approval from Union and Management
9 Establish a suitable grievance procedure
COMPONENTS OF COMPENSATION SYSTEM
1 Basic WagesSalaries
2 Dearness Allowance
3 Bonus
4 Commissions
5 Mixed Plans
6 Piece Rate Wages
7 Sign on Bonuses
8 Profit Sharing Payments
9 Fringe Benefits
COMPENSATION EQUITY
1048698 External Equity Employees are paid comparably to those who perform similar jobs in other industries
1048698 Internal Equity Employees are paid according to relative value of their jobs within an organisation
1048698 Employee Equity Individuals performing similar jobs for the same firm are rewarded according to factors unique to the employee such as performance level or seniority
1048698 Team Equity More productive teams receive greater rewards than less productive groups
INTERNATIONAL COMPENSATION
Elements of Expatriate Compensation
Basic Pay Amount of money that an expatriate receives from home country Used for
Bonus calculation
Benefits
1048698 One third of compensation
1048698 Extra vacation special leaves air fares for their families for an annual visit home
emergency leaves
1048698 Housing
1048698 Utilities ndash air conditioner bottled water electricity telephone call expenses
1048698 Car ndash car expenses chauffeur hired vehicle
Helping hands servants gardeners security
1048698 Club subscription
1048698 Educational benefits
Allowances
1048698 COLA ndash cost of living between home country and foreign country inflation
1048698 Relocation allowances
1048698 Hardship allowances
1048698 Separation allowances
1048698 Clothing allowances ndash very cold climates
1048698 Home leave allowances
1048698 Spouse assistance allowances
REWARDS SYSTEM
Reward System as Followed by Organisations
1 Incentive and Rewards
2 Competency Related Pay
3 Skill Based Pay
4 Team Based Rewards
5 Profit Sharing
7 Employee Ownership
8 Statutory and Voluntary Benefits
FORMS OF RECOGNITION
Examples of Formal Recognition
1 Milestone Service Anniversary Awards (5101520 25 years of service)
2 Ideas Improvement amp Performance Awards
3 Service Awards
a) Teamworkleadership
b) Customer Service
c) Citizenship
d) Innovation
e) Attendance
4 Awards would include
a) PlaquesDesk trophies
b) Certificates
c) GiftsCertificates
d) Picture in the webpage
FORMS OF RECOGNITION
Examples of Informal Recognition
1 Team Building Retreats
2 Acknowledgement of DeptDivision goals achieved
3 Project Completion meals
4 Birthday cakes and cards
5 Picnics
6 Staff Appreciation Day
7 Holiday Parties
8 Dress-up Days
9 Corporate Merchandise
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-
69
NEED FOR TRAINING AND DEVELOPMENT
bull Technological advances bull Organizational complexity bull Organizational tenure bull Human relations movement
70
THE TRAINING PROCESS
71
Needs Assessment
72
bull Lecturesbull Audio Visualsbull On-the-job Training (OJT)bull Programmed Instructionbull Computer Assisted Instruction (CAI)bull Simulation
Methods and Techniques of Training
73
Training Methods for Management Development
1048698 Seminars and Conferences
1048698 Case Study
1048698 Role Playing
1048698 Management Games
1048698 Sensitivity Training
74
bull Implementation of the Training Program
bull Evaluation of Training Program
75
Kirkpatrick Model for Evaluating Effectiveness of Training Programs
1 Reactions
2 Learning
3 Behaviors
Results or Return on Investment (ROI)
76
SPECIAL TOPICS IN TRAINING ANDDEVELOPMENT
bull Cross-cultural Training
bull Orientation Training
bull Team-training and Cross-training
bull Diversity Training
COMPENSATION AND REWARDS
78
COMPENSATION OVERVIEW
Compensation is the process of directly and indirectly rewarding employees on a current or deferred basis for their performance of assigned tasks It consists of
1048698 Direct Financial Compensation Wages salaries bonuses commissions
1048698 Indirect Financial Compensation All financial rewards not included in direct compensation (benefits)
1048698 Non-financial Compensation Satisfaction received from the job or from the psychological andor physical environment of the job
JOB EVALUATION TECHNIQUE
The general step-wise procedure for job evaluation is as under
1 Select the group of jobs
2 Study the job (job analysis)
3 Prepare job description ndash approval
4 Device an evaluation plan ndash common characteristicstraits
5 Establish a committee of raters and rateevaluate
6 Group or classify the jobs
7 Convert job grades to money value along with Wage survey
8 Obtain approval from Union and Management
9 Establish a suitable grievance procedure
COMPONENTS OF COMPENSATION SYSTEM
1 Basic WagesSalaries
2 Dearness Allowance
3 Bonus
4 Commissions
5 Mixed Plans
6 Piece Rate Wages
7 Sign on Bonuses
8 Profit Sharing Payments
9 Fringe Benefits
COMPENSATION EQUITY
1048698 External Equity Employees are paid comparably to those who perform similar jobs in other industries
1048698 Internal Equity Employees are paid according to relative value of their jobs within an organisation
1048698 Employee Equity Individuals performing similar jobs for the same firm are rewarded according to factors unique to the employee such as performance level or seniority
1048698 Team Equity More productive teams receive greater rewards than less productive groups
INTERNATIONAL COMPENSATION
Elements of Expatriate Compensation
Basic Pay Amount of money that an expatriate receives from home country Used for
Bonus calculation
Benefits
1048698 One third of compensation
1048698 Extra vacation special leaves air fares for their families for an annual visit home
emergency leaves
1048698 Housing
1048698 Utilities ndash air conditioner bottled water electricity telephone call expenses
1048698 Car ndash car expenses chauffeur hired vehicle
Helping hands servants gardeners security
1048698 Club subscription
1048698 Educational benefits
Allowances
1048698 COLA ndash cost of living between home country and foreign country inflation
1048698 Relocation allowances
1048698 Hardship allowances
1048698 Separation allowances
1048698 Clothing allowances ndash very cold climates
1048698 Home leave allowances
1048698 Spouse assistance allowances
REWARDS SYSTEM
Reward System as Followed by Organisations
1 Incentive and Rewards
2 Competency Related Pay
3 Skill Based Pay
4 Team Based Rewards
5 Profit Sharing
7 Employee Ownership
8 Statutory and Voluntary Benefits
FORMS OF RECOGNITION
Examples of Formal Recognition
1 Milestone Service Anniversary Awards (5101520 25 years of service)
2 Ideas Improvement amp Performance Awards
3 Service Awards
a) Teamworkleadership
b) Customer Service
c) Citizenship
d) Innovation
e) Attendance
4 Awards would include
a) PlaquesDesk trophies
b) Certificates
c) GiftsCertificates
d) Picture in the webpage
FORMS OF RECOGNITION
Examples of Informal Recognition
1 Team Building Retreats
2 Acknowledgement of DeptDivision goals achieved
3 Project Completion meals
4 Birthday cakes and cards
5 Picnics
6 Staff Appreciation Day
7 Holiday Parties
8 Dress-up Days
9 Corporate Merchandise
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-
70
THE TRAINING PROCESS
71
Needs Assessment
72
bull Lecturesbull Audio Visualsbull On-the-job Training (OJT)bull Programmed Instructionbull Computer Assisted Instruction (CAI)bull Simulation
Methods and Techniques of Training
73
Training Methods for Management Development
1048698 Seminars and Conferences
1048698 Case Study
1048698 Role Playing
1048698 Management Games
1048698 Sensitivity Training
74
bull Implementation of the Training Program
bull Evaluation of Training Program
75
Kirkpatrick Model for Evaluating Effectiveness of Training Programs
1 Reactions
2 Learning
3 Behaviors
Results or Return on Investment (ROI)
76
SPECIAL TOPICS IN TRAINING ANDDEVELOPMENT
bull Cross-cultural Training
bull Orientation Training
bull Team-training and Cross-training
bull Diversity Training
COMPENSATION AND REWARDS
78
COMPENSATION OVERVIEW
Compensation is the process of directly and indirectly rewarding employees on a current or deferred basis for their performance of assigned tasks It consists of
1048698 Direct Financial Compensation Wages salaries bonuses commissions
1048698 Indirect Financial Compensation All financial rewards not included in direct compensation (benefits)
1048698 Non-financial Compensation Satisfaction received from the job or from the psychological andor physical environment of the job
JOB EVALUATION TECHNIQUE
The general step-wise procedure for job evaluation is as under
1 Select the group of jobs
2 Study the job (job analysis)
3 Prepare job description ndash approval
4 Device an evaluation plan ndash common characteristicstraits
5 Establish a committee of raters and rateevaluate
6 Group or classify the jobs
7 Convert job grades to money value along with Wage survey
8 Obtain approval from Union and Management
9 Establish a suitable grievance procedure
COMPONENTS OF COMPENSATION SYSTEM
1 Basic WagesSalaries
2 Dearness Allowance
3 Bonus
4 Commissions
5 Mixed Plans
6 Piece Rate Wages
7 Sign on Bonuses
8 Profit Sharing Payments
9 Fringe Benefits
COMPENSATION EQUITY
1048698 External Equity Employees are paid comparably to those who perform similar jobs in other industries
1048698 Internal Equity Employees are paid according to relative value of their jobs within an organisation
1048698 Employee Equity Individuals performing similar jobs for the same firm are rewarded according to factors unique to the employee such as performance level or seniority
1048698 Team Equity More productive teams receive greater rewards than less productive groups
INTERNATIONAL COMPENSATION
Elements of Expatriate Compensation
Basic Pay Amount of money that an expatriate receives from home country Used for
Bonus calculation
Benefits
1048698 One third of compensation
1048698 Extra vacation special leaves air fares for their families for an annual visit home
emergency leaves
1048698 Housing
1048698 Utilities ndash air conditioner bottled water electricity telephone call expenses
1048698 Car ndash car expenses chauffeur hired vehicle
Helping hands servants gardeners security
1048698 Club subscription
1048698 Educational benefits
Allowances
1048698 COLA ndash cost of living between home country and foreign country inflation
1048698 Relocation allowances
1048698 Hardship allowances
1048698 Separation allowances
1048698 Clothing allowances ndash very cold climates
1048698 Home leave allowances
1048698 Spouse assistance allowances
REWARDS SYSTEM
Reward System as Followed by Organisations
1 Incentive and Rewards
2 Competency Related Pay
3 Skill Based Pay
4 Team Based Rewards
5 Profit Sharing
7 Employee Ownership
8 Statutory and Voluntary Benefits
FORMS OF RECOGNITION
Examples of Formal Recognition
1 Milestone Service Anniversary Awards (5101520 25 years of service)
2 Ideas Improvement amp Performance Awards
3 Service Awards
a) Teamworkleadership
b) Customer Service
c) Citizenship
d) Innovation
e) Attendance
4 Awards would include
a) PlaquesDesk trophies
b) Certificates
c) GiftsCertificates
d) Picture in the webpage
FORMS OF RECOGNITION
Examples of Informal Recognition
1 Team Building Retreats
2 Acknowledgement of DeptDivision goals achieved
3 Project Completion meals
4 Birthday cakes and cards
5 Picnics
6 Staff Appreciation Day
7 Holiday Parties
8 Dress-up Days
9 Corporate Merchandise
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-
71
Needs Assessment
72
bull Lecturesbull Audio Visualsbull On-the-job Training (OJT)bull Programmed Instructionbull Computer Assisted Instruction (CAI)bull Simulation
Methods and Techniques of Training
73
Training Methods for Management Development
1048698 Seminars and Conferences
1048698 Case Study
1048698 Role Playing
1048698 Management Games
1048698 Sensitivity Training
74
bull Implementation of the Training Program
bull Evaluation of Training Program
75
Kirkpatrick Model for Evaluating Effectiveness of Training Programs
1 Reactions
2 Learning
3 Behaviors
Results or Return on Investment (ROI)
76
SPECIAL TOPICS IN TRAINING ANDDEVELOPMENT
bull Cross-cultural Training
bull Orientation Training
bull Team-training and Cross-training
bull Diversity Training
COMPENSATION AND REWARDS
78
COMPENSATION OVERVIEW
Compensation is the process of directly and indirectly rewarding employees on a current or deferred basis for their performance of assigned tasks It consists of
1048698 Direct Financial Compensation Wages salaries bonuses commissions
1048698 Indirect Financial Compensation All financial rewards not included in direct compensation (benefits)
1048698 Non-financial Compensation Satisfaction received from the job or from the psychological andor physical environment of the job
JOB EVALUATION TECHNIQUE
The general step-wise procedure for job evaluation is as under
1 Select the group of jobs
2 Study the job (job analysis)
3 Prepare job description ndash approval
4 Device an evaluation plan ndash common characteristicstraits
5 Establish a committee of raters and rateevaluate
6 Group or classify the jobs
7 Convert job grades to money value along with Wage survey
8 Obtain approval from Union and Management
9 Establish a suitable grievance procedure
COMPONENTS OF COMPENSATION SYSTEM
1 Basic WagesSalaries
2 Dearness Allowance
3 Bonus
4 Commissions
5 Mixed Plans
6 Piece Rate Wages
7 Sign on Bonuses
8 Profit Sharing Payments
9 Fringe Benefits
COMPENSATION EQUITY
1048698 External Equity Employees are paid comparably to those who perform similar jobs in other industries
1048698 Internal Equity Employees are paid according to relative value of their jobs within an organisation
1048698 Employee Equity Individuals performing similar jobs for the same firm are rewarded according to factors unique to the employee such as performance level or seniority
1048698 Team Equity More productive teams receive greater rewards than less productive groups
INTERNATIONAL COMPENSATION
Elements of Expatriate Compensation
Basic Pay Amount of money that an expatriate receives from home country Used for
Bonus calculation
Benefits
1048698 One third of compensation
1048698 Extra vacation special leaves air fares for their families for an annual visit home
emergency leaves
1048698 Housing
1048698 Utilities ndash air conditioner bottled water electricity telephone call expenses
1048698 Car ndash car expenses chauffeur hired vehicle
Helping hands servants gardeners security
1048698 Club subscription
1048698 Educational benefits
Allowances
1048698 COLA ndash cost of living between home country and foreign country inflation
1048698 Relocation allowances
1048698 Hardship allowances
1048698 Separation allowances
1048698 Clothing allowances ndash very cold climates
1048698 Home leave allowances
1048698 Spouse assistance allowances
REWARDS SYSTEM
Reward System as Followed by Organisations
1 Incentive and Rewards
2 Competency Related Pay
3 Skill Based Pay
4 Team Based Rewards
5 Profit Sharing
7 Employee Ownership
8 Statutory and Voluntary Benefits
FORMS OF RECOGNITION
Examples of Formal Recognition
1 Milestone Service Anniversary Awards (5101520 25 years of service)
2 Ideas Improvement amp Performance Awards
3 Service Awards
a) Teamworkleadership
b) Customer Service
c) Citizenship
d) Innovation
e) Attendance
4 Awards would include
a) PlaquesDesk trophies
b) Certificates
c) GiftsCertificates
d) Picture in the webpage
FORMS OF RECOGNITION
Examples of Informal Recognition
1 Team Building Retreats
2 Acknowledgement of DeptDivision goals achieved
3 Project Completion meals
4 Birthday cakes and cards
5 Picnics
6 Staff Appreciation Day
7 Holiday Parties
8 Dress-up Days
9 Corporate Merchandise
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-
72
bull Lecturesbull Audio Visualsbull On-the-job Training (OJT)bull Programmed Instructionbull Computer Assisted Instruction (CAI)bull Simulation
Methods and Techniques of Training
73
Training Methods for Management Development
1048698 Seminars and Conferences
1048698 Case Study
1048698 Role Playing
1048698 Management Games
1048698 Sensitivity Training
74
bull Implementation of the Training Program
bull Evaluation of Training Program
75
Kirkpatrick Model for Evaluating Effectiveness of Training Programs
1 Reactions
2 Learning
3 Behaviors
Results or Return on Investment (ROI)
76
SPECIAL TOPICS IN TRAINING ANDDEVELOPMENT
bull Cross-cultural Training
bull Orientation Training
bull Team-training and Cross-training
bull Diversity Training
COMPENSATION AND REWARDS
78
COMPENSATION OVERVIEW
Compensation is the process of directly and indirectly rewarding employees on a current or deferred basis for their performance of assigned tasks It consists of
1048698 Direct Financial Compensation Wages salaries bonuses commissions
1048698 Indirect Financial Compensation All financial rewards not included in direct compensation (benefits)
1048698 Non-financial Compensation Satisfaction received from the job or from the psychological andor physical environment of the job
JOB EVALUATION TECHNIQUE
The general step-wise procedure for job evaluation is as under
1 Select the group of jobs
2 Study the job (job analysis)
3 Prepare job description ndash approval
4 Device an evaluation plan ndash common characteristicstraits
5 Establish a committee of raters and rateevaluate
6 Group or classify the jobs
7 Convert job grades to money value along with Wage survey
8 Obtain approval from Union and Management
9 Establish a suitable grievance procedure
COMPONENTS OF COMPENSATION SYSTEM
1 Basic WagesSalaries
2 Dearness Allowance
3 Bonus
4 Commissions
5 Mixed Plans
6 Piece Rate Wages
7 Sign on Bonuses
8 Profit Sharing Payments
9 Fringe Benefits
COMPENSATION EQUITY
1048698 External Equity Employees are paid comparably to those who perform similar jobs in other industries
1048698 Internal Equity Employees are paid according to relative value of their jobs within an organisation
1048698 Employee Equity Individuals performing similar jobs for the same firm are rewarded according to factors unique to the employee such as performance level or seniority
1048698 Team Equity More productive teams receive greater rewards than less productive groups
INTERNATIONAL COMPENSATION
Elements of Expatriate Compensation
Basic Pay Amount of money that an expatriate receives from home country Used for
Bonus calculation
Benefits
1048698 One third of compensation
1048698 Extra vacation special leaves air fares for their families for an annual visit home
emergency leaves
1048698 Housing
1048698 Utilities ndash air conditioner bottled water electricity telephone call expenses
1048698 Car ndash car expenses chauffeur hired vehicle
Helping hands servants gardeners security
1048698 Club subscription
1048698 Educational benefits
Allowances
1048698 COLA ndash cost of living between home country and foreign country inflation
1048698 Relocation allowances
1048698 Hardship allowances
1048698 Separation allowances
1048698 Clothing allowances ndash very cold climates
1048698 Home leave allowances
1048698 Spouse assistance allowances
REWARDS SYSTEM
Reward System as Followed by Organisations
1 Incentive and Rewards
2 Competency Related Pay
3 Skill Based Pay
4 Team Based Rewards
5 Profit Sharing
7 Employee Ownership
8 Statutory and Voluntary Benefits
FORMS OF RECOGNITION
Examples of Formal Recognition
1 Milestone Service Anniversary Awards (5101520 25 years of service)
2 Ideas Improvement amp Performance Awards
3 Service Awards
a) Teamworkleadership
b) Customer Service
c) Citizenship
d) Innovation
e) Attendance
4 Awards would include
a) PlaquesDesk trophies
b) Certificates
c) GiftsCertificates
d) Picture in the webpage
FORMS OF RECOGNITION
Examples of Informal Recognition
1 Team Building Retreats
2 Acknowledgement of DeptDivision goals achieved
3 Project Completion meals
4 Birthday cakes and cards
5 Picnics
6 Staff Appreciation Day
7 Holiday Parties
8 Dress-up Days
9 Corporate Merchandise
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-
73
Training Methods for Management Development
1048698 Seminars and Conferences
1048698 Case Study
1048698 Role Playing
1048698 Management Games
1048698 Sensitivity Training
74
bull Implementation of the Training Program
bull Evaluation of Training Program
75
Kirkpatrick Model for Evaluating Effectiveness of Training Programs
1 Reactions
2 Learning
3 Behaviors
Results or Return on Investment (ROI)
76
SPECIAL TOPICS IN TRAINING ANDDEVELOPMENT
bull Cross-cultural Training
bull Orientation Training
bull Team-training and Cross-training
bull Diversity Training
COMPENSATION AND REWARDS
78
COMPENSATION OVERVIEW
Compensation is the process of directly and indirectly rewarding employees on a current or deferred basis for their performance of assigned tasks It consists of
1048698 Direct Financial Compensation Wages salaries bonuses commissions
1048698 Indirect Financial Compensation All financial rewards not included in direct compensation (benefits)
1048698 Non-financial Compensation Satisfaction received from the job or from the psychological andor physical environment of the job
JOB EVALUATION TECHNIQUE
The general step-wise procedure for job evaluation is as under
1 Select the group of jobs
2 Study the job (job analysis)
3 Prepare job description ndash approval
4 Device an evaluation plan ndash common characteristicstraits
5 Establish a committee of raters and rateevaluate
6 Group or classify the jobs
7 Convert job grades to money value along with Wage survey
8 Obtain approval from Union and Management
9 Establish a suitable grievance procedure
COMPONENTS OF COMPENSATION SYSTEM
1 Basic WagesSalaries
2 Dearness Allowance
3 Bonus
4 Commissions
5 Mixed Plans
6 Piece Rate Wages
7 Sign on Bonuses
8 Profit Sharing Payments
9 Fringe Benefits
COMPENSATION EQUITY
1048698 External Equity Employees are paid comparably to those who perform similar jobs in other industries
1048698 Internal Equity Employees are paid according to relative value of their jobs within an organisation
1048698 Employee Equity Individuals performing similar jobs for the same firm are rewarded according to factors unique to the employee such as performance level or seniority
1048698 Team Equity More productive teams receive greater rewards than less productive groups
INTERNATIONAL COMPENSATION
Elements of Expatriate Compensation
Basic Pay Amount of money that an expatriate receives from home country Used for
Bonus calculation
Benefits
1048698 One third of compensation
1048698 Extra vacation special leaves air fares for their families for an annual visit home
emergency leaves
1048698 Housing
1048698 Utilities ndash air conditioner bottled water electricity telephone call expenses
1048698 Car ndash car expenses chauffeur hired vehicle
Helping hands servants gardeners security
1048698 Club subscription
1048698 Educational benefits
Allowances
1048698 COLA ndash cost of living between home country and foreign country inflation
1048698 Relocation allowances
1048698 Hardship allowances
1048698 Separation allowances
1048698 Clothing allowances ndash very cold climates
1048698 Home leave allowances
1048698 Spouse assistance allowances
REWARDS SYSTEM
Reward System as Followed by Organisations
1 Incentive and Rewards
2 Competency Related Pay
3 Skill Based Pay
4 Team Based Rewards
5 Profit Sharing
7 Employee Ownership
8 Statutory and Voluntary Benefits
FORMS OF RECOGNITION
Examples of Formal Recognition
1 Milestone Service Anniversary Awards (5101520 25 years of service)
2 Ideas Improvement amp Performance Awards
3 Service Awards
a) Teamworkleadership
b) Customer Service
c) Citizenship
d) Innovation
e) Attendance
4 Awards would include
a) PlaquesDesk trophies
b) Certificates
c) GiftsCertificates
d) Picture in the webpage
FORMS OF RECOGNITION
Examples of Informal Recognition
1 Team Building Retreats
2 Acknowledgement of DeptDivision goals achieved
3 Project Completion meals
4 Birthday cakes and cards
5 Picnics
6 Staff Appreciation Day
7 Holiday Parties
8 Dress-up Days
9 Corporate Merchandise
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-
74
bull Implementation of the Training Program
bull Evaluation of Training Program
75
Kirkpatrick Model for Evaluating Effectiveness of Training Programs
1 Reactions
2 Learning
3 Behaviors
Results or Return on Investment (ROI)
76
SPECIAL TOPICS IN TRAINING ANDDEVELOPMENT
bull Cross-cultural Training
bull Orientation Training
bull Team-training and Cross-training
bull Diversity Training
COMPENSATION AND REWARDS
78
COMPENSATION OVERVIEW
Compensation is the process of directly and indirectly rewarding employees on a current or deferred basis for their performance of assigned tasks It consists of
1048698 Direct Financial Compensation Wages salaries bonuses commissions
1048698 Indirect Financial Compensation All financial rewards not included in direct compensation (benefits)
1048698 Non-financial Compensation Satisfaction received from the job or from the psychological andor physical environment of the job
JOB EVALUATION TECHNIQUE
The general step-wise procedure for job evaluation is as under
1 Select the group of jobs
2 Study the job (job analysis)
3 Prepare job description ndash approval
4 Device an evaluation plan ndash common characteristicstraits
5 Establish a committee of raters and rateevaluate
6 Group or classify the jobs
7 Convert job grades to money value along with Wage survey
8 Obtain approval from Union and Management
9 Establish a suitable grievance procedure
COMPONENTS OF COMPENSATION SYSTEM
1 Basic WagesSalaries
2 Dearness Allowance
3 Bonus
4 Commissions
5 Mixed Plans
6 Piece Rate Wages
7 Sign on Bonuses
8 Profit Sharing Payments
9 Fringe Benefits
COMPENSATION EQUITY
1048698 External Equity Employees are paid comparably to those who perform similar jobs in other industries
1048698 Internal Equity Employees are paid according to relative value of their jobs within an organisation
1048698 Employee Equity Individuals performing similar jobs for the same firm are rewarded according to factors unique to the employee such as performance level or seniority
1048698 Team Equity More productive teams receive greater rewards than less productive groups
INTERNATIONAL COMPENSATION
Elements of Expatriate Compensation
Basic Pay Amount of money that an expatriate receives from home country Used for
Bonus calculation
Benefits
1048698 One third of compensation
1048698 Extra vacation special leaves air fares for their families for an annual visit home
emergency leaves
1048698 Housing
1048698 Utilities ndash air conditioner bottled water electricity telephone call expenses
1048698 Car ndash car expenses chauffeur hired vehicle
Helping hands servants gardeners security
1048698 Club subscription
1048698 Educational benefits
Allowances
1048698 COLA ndash cost of living between home country and foreign country inflation
1048698 Relocation allowances
1048698 Hardship allowances
1048698 Separation allowances
1048698 Clothing allowances ndash very cold climates
1048698 Home leave allowances
1048698 Spouse assistance allowances
REWARDS SYSTEM
Reward System as Followed by Organisations
1 Incentive and Rewards
2 Competency Related Pay
3 Skill Based Pay
4 Team Based Rewards
5 Profit Sharing
7 Employee Ownership
8 Statutory and Voluntary Benefits
FORMS OF RECOGNITION
Examples of Formal Recognition
1 Milestone Service Anniversary Awards (5101520 25 years of service)
2 Ideas Improvement amp Performance Awards
3 Service Awards
a) Teamworkleadership
b) Customer Service
c) Citizenship
d) Innovation
e) Attendance
4 Awards would include
a) PlaquesDesk trophies
b) Certificates
c) GiftsCertificates
d) Picture in the webpage
FORMS OF RECOGNITION
Examples of Informal Recognition
1 Team Building Retreats
2 Acknowledgement of DeptDivision goals achieved
3 Project Completion meals
4 Birthday cakes and cards
5 Picnics
6 Staff Appreciation Day
7 Holiday Parties
8 Dress-up Days
9 Corporate Merchandise
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-
75
Kirkpatrick Model for Evaluating Effectiveness of Training Programs
1 Reactions
2 Learning
3 Behaviors
Results or Return on Investment (ROI)
76
SPECIAL TOPICS IN TRAINING ANDDEVELOPMENT
bull Cross-cultural Training
bull Orientation Training
bull Team-training and Cross-training
bull Diversity Training
COMPENSATION AND REWARDS
78
COMPENSATION OVERVIEW
Compensation is the process of directly and indirectly rewarding employees on a current or deferred basis for their performance of assigned tasks It consists of
1048698 Direct Financial Compensation Wages salaries bonuses commissions
1048698 Indirect Financial Compensation All financial rewards not included in direct compensation (benefits)
1048698 Non-financial Compensation Satisfaction received from the job or from the psychological andor physical environment of the job
JOB EVALUATION TECHNIQUE
The general step-wise procedure for job evaluation is as under
1 Select the group of jobs
2 Study the job (job analysis)
3 Prepare job description ndash approval
4 Device an evaluation plan ndash common characteristicstraits
5 Establish a committee of raters and rateevaluate
6 Group or classify the jobs
7 Convert job grades to money value along with Wage survey
8 Obtain approval from Union and Management
9 Establish a suitable grievance procedure
COMPONENTS OF COMPENSATION SYSTEM
1 Basic WagesSalaries
2 Dearness Allowance
3 Bonus
4 Commissions
5 Mixed Plans
6 Piece Rate Wages
7 Sign on Bonuses
8 Profit Sharing Payments
9 Fringe Benefits
COMPENSATION EQUITY
1048698 External Equity Employees are paid comparably to those who perform similar jobs in other industries
1048698 Internal Equity Employees are paid according to relative value of their jobs within an organisation
1048698 Employee Equity Individuals performing similar jobs for the same firm are rewarded according to factors unique to the employee such as performance level or seniority
1048698 Team Equity More productive teams receive greater rewards than less productive groups
INTERNATIONAL COMPENSATION
Elements of Expatriate Compensation
Basic Pay Amount of money that an expatriate receives from home country Used for
Bonus calculation
Benefits
1048698 One third of compensation
1048698 Extra vacation special leaves air fares for their families for an annual visit home
emergency leaves
1048698 Housing
1048698 Utilities ndash air conditioner bottled water electricity telephone call expenses
1048698 Car ndash car expenses chauffeur hired vehicle
Helping hands servants gardeners security
1048698 Club subscription
1048698 Educational benefits
Allowances
1048698 COLA ndash cost of living between home country and foreign country inflation
1048698 Relocation allowances
1048698 Hardship allowances
1048698 Separation allowances
1048698 Clothing allowances ndash very cold climates
1048698 Home leave allowances
1048698 Spouse assistance allowances
REWARDS SYSTEM
Reward System as Followed by Organisations
1 Incentive and Rewards
2 Competency Related Pay
3 Skill Based Pay
4 Team Based Rewards
5 Profit Sharing
7 Employee Ownership
8 Statutory and Voluntary Benefits
FORMS OF RECOGNITION
Examples of Formal Recognition
1 Milestone Service Anniversary Awards (5101520 25 years of service)
2 Ideas Improvement amp Performance Awards
3 Service Awards
a) Teamworkleadership
b) Customer Service
c) Citizenship
d) Innovation
e) Attendance
4 Awards would include
a) PlaquesDesk trophies
b) Certificates
c) GiftsCertificates
d) Picture in the webpage
FORMS OF RECOGNITION
Examples of Informal Recognition
1 Team Building Retreats
2 Acknowledgement of DeptDivision goals achieved
3 Project Completion meals
4 Birthday cakes and cards
5 Picnics
6 Staff Appreciation Day
7 Holiday Parties
8 Dress-up Days
9 Corporate Merchandise
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-
76
SPECIAL TOPICS IN TRAINING ANDDEVELOPMENT
bull Cross-cultural Training
bull Orientation Training
bull Team-training and Cross-training
bull Diversity Training
COMPENSATION AND REWARDS
78
COMPENSATION OVERVIEW
Compensation is the process of directly and indirectly rewarding employees on a current or deferred basis for their performance of assigned tasks It consists of
1048698 Direct Financial Compensation Wages salaries bonuses commissions
1048698 Indirect Financial Compensation All financial rewards not included in direct compensation (benefits)
1048698 Non-financial Compensation Satisfaction received from the job or from the psychological andor physical environment of the job
JOB EVALUATION TECHNIQUE
The general step-wise procedure for job evaluation is as under
1 Select the group of jobs
2 Study the job (job analysis)
3 Prepare job description ndash approval
4 Device an evaluation plan ndash common characteristicstraits
5 Establish a committee of raters and rateevaluate
6 Group or classify the jobs
7 Convert job grades to money value along with Wage survey
8 Obtain approval from Union and Management
9 Establish a suitable grievance procedure
COMPONENTS OF COMPENSATION SYSTEM
1 Basic WagesSalaries
2 Dearness Allowance
3 Bonus
4 Commissions
5 Mixed Plans
6 Piece Rate Wages
7 Sign on Bonuses
8 Profit Sharing Payments
9 Fringe Benefits
COMPENSATION EQUITY
1048698 External Equity Employees are paid comparably to those who perform similar jobs in other industries
1048698 Internal Equity Employees are paid according to relative value of their jobs within an organisation
1048698 Employee Equity Individuals performing similar jobs for the same firm are rewarded according to factors unique to the employee such as performance level or seniority
1048698 Team Equity More productive teams receive greater rewards than less productive groups
INTERNATIONAL COMPENSATION
Elements of Expatriate Compensation
Basic Pay Amount of money that an expatriate receives from home country Used for
Bonus calculation
Benefits
1048698 One third of compensation
1048698 Extra vacation special leaves air fares for their families for an annual visit home
emergency leaves
1048698 Housing
1048698 Utilities ndash air conditioner bottled water electricity telephone call expenses
1048698 Car ndash car expenses chauffeur hired vehicle
Helping hands servants gardeners security
1048698 Club subscription
1048698 Educational benefits
Allowances
1048698 COLA ndash cost of living between home country and foreign country inflation
1048698 Relocation allowances
1048698 Hardship allowances
1048698 Separation allowances
1048698 Clothing allowances ndash very cold climates
1048698 Home leave allowances
1048698 Spouse assistance allowances
REWARDS SYSTEM
Reward System as Followed by Organisations
1 Incentive and Rewards
2 Competency Related Pay
3 Skill Based Pay
4 Team Based Rewards
5 Profit Sharing
7 Employee Ownership
8 Statutory and Voluntary Benefits
FORMS OF RECOGNITION
Examples of Formal Recognition
1 Milestone Service Anniversary Awards (5101520 25 years of service)
2 Ideas Improvement amp Performance Awards
3 Service Awards
a) Teamworkleadership
b) Customer Service
c) Citizenship
d) Innovation
e) Attendance
4 Awards would include
a) PlaquesDesk trophies
b) Certificates
c) GiftsCertificates
d) Picture in the webpage
FORMS OF RECOGNITION
Examples of Informal Recognition
1 Team Building Retreats
2 Acknowledgement of DeptDivision goals achieved
3 Project Completion meals
4 Birthday cakes and cards
5 Picnics
6 Staff Appreciation Day
7 Holiday Parties
8 Dress-up Days
9 Corporate Merchandise
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-
COMPENSATION AND REWARDS
78
COMPENSATION OVERVIEW
Compensation is the process of directly and indirectly rewarding employees on a current or deferred basis for their performance of assigned tasks It consists of
1048698 Direct Financial Compensation Wages salaries bonuses commissions
1048698 Indirect Financial Compensation All financial rewards not included in direct compensation (benefits)
1048698 Non-financial Compensation Satisfaction received from the job or from the psychological andor physical environment of the job
JOB EVALUATION TECHNIQUE
The general step-wise procedure for job evaluation is as under
1 Select the group of jobs
2 Study the job (job analysis)
3 Prepare job description ndash approval
4 Device an evaluation plan ndash common characteristicstraits
5 Establish a committee of raters and rateevaluate
6 Group or classify the jobs
7 Convert job grades to money value along with Wage survey
8 Obtain approval from Union and Management
9 Establish a suitable grievance procedure
COMPONENTS OF COMPENSATION SYSTEM
1 Basic WagesSalaries
2 Dearness Allowance
3 Bonus
4 Commissions
5 Mixed Plans
6 Piece Rate Wages
7 Sign on Bonuses
8 Profit Sharing Payments
9 Fringe Benefits
COMPENSATION EQUITY
1048698 External Equity Employees are paid comparably to those who perform similar jobs in other industries
1048698 Internal Equity Employees are paid according to relative value of their jobs within an organisation
1048698 Employee Equity Individuals performing similar jobs for the same firm are rewarded according to factors unique to the employee such as performance level or seniority
1048698 Team Equity More productive teams receive greater rewards than less productive groups
INTERNATIONAL COMPENSATION
Elements of Expatriate Compensation
Basic Pay Amount of money that an expatriate receives from home country Used for
Bonus calculation
Benefits
1048698 One third of compensation
1048698 Extra vacation special leaves air fares for their families for an annual visit home
emergency leaves
1048698 Housing
1048698 Utilities ndash air conditioner bottled water electricity telephone call expenses
1048698 Car ndash car expenses chauffeur hired vehicle
Helping hands servants gardeners security
1048698 Club subscription
1048698 Educational benefits
Allowances
1048698 COLA ndash cost of living between home country and foreign country inflation
1048698 Relocation allowances
1048698 Hardship allowances
1048698 Separation allowances
1048698 Clothing allowances ndash very cold climates
1048698 Home leave allowances
1048698 Spouse assistance allowances
REWARDS SYSTEM
Reward System as Followed by Organisations
1 Incentive and Rewards
2 Competency Related Pay
3 Skill Based Pay
4 Team Based Rewards
5 Profit Sharing
7 Employee Ownership
8 Statutory and Voluntary Benefits
FORMS OF RECOGNITION
Examples of Formal Recognition
1 Milestone Service Anniversary Awards (5101520 25 years of service)
2 Ideas Improvement amp Performance Awards
3 Service Awards
a) Teamworkleadership
b) Customer Service
c) Citizenship
d) Innovation
e) Attendance
4 Awards would include
a) PlaquesDesk trophies
b) Certificates
c) GiftsCertificates
d) Picture in the webpage
FORMS OF RECOGNITION
Examples of Informal Recognition
1 Team Building Retreats
2 Acknowledgement of DeptDivision goals achieved
3 Project Completion meals
4 Birthday cakes and cards
5 Picnics
6 Staff Appreciation Day
7 Holiday Parties
8 Dress-up Days
9 Corporate Merchandise
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-
78
COMPENSATION OVERVIEW
Compensation is the process of directly and indirectly rewarding employees on a current or deferred basis for their performance of assigned tasks It consists of
1048698 Direct Financial Compensation Wages salaries bonuses commissions
1048698 Indirect Financial Compensation All financial rewards not included in direct compensation (benefits)
1048698 Non-financial Compensation Satisfaction received from the job or from the psychological andor physical environment of the job
JOB EVALUATION TECHNIQUE
The general step-wise procedure for job evaluation is as under
1 Select the group of jobs
2 Study the job (job analysis)
3 Prepare job description ndash approval
4 Device an evaluation plan ndash common characteristicstraits
5 Establish a committee of raters and rateevaluate
6 Group or classify the jobs
7 Convert job grades to money value along with Wage survey
8 Obtain approval from Union and Management
9 Establish a suitable grievance procedure
COMPONENTS OF COMPENSATION SYSTEM
1 Basic WagesSalaries
2 Dearness Allowance
3 Bonus
4 Commissions
5 Mixed Plans
6 Piece Rate Wages
7 Sign on Bonuses
8 Profit Sharing Payments
9 Fringe Benefits
COMPENSATION EQUITY
1048698 External Equity Employees are paid comparably to those who perform similar jobs in other industries
1048698 Internal Equity Employees are paid according to relative value of their jobs within an organisation
1048698 Employee Equity Individuals performing similar jobs for the same firm are rewarded according to factors unique to the employee such as performance level or seniority
1048698 Team Equity More productive teams receive greater rewards than less productive groups
INTERNATIONAL COMPENSATION
Elements of Expatriate Compensation
Basic Pay Amount of money that an expatriate receives from home country Used for
Bonus calculation
Benefits
1048698 One third of compensation
1048698 Extra vacation special leaves air fares for their families for an annual visit home
emergency leaves
1048698 Housing
1048698 Utilities ndash air conditioner bottled water electricity telephone call expenses
1048698 Car ndash car expenses chauffeur hired vehicle
Helping hands servants gardeners security
1048698 Club subscription
1048698 Educational benefits
Allowances
1048698 COLA ndash cost of living between home country and foreign country inflation
1048698 Relocation allowances
1048698 Hardship allowances
1048698 Separation allowances
1048698 Clothing allowances ndash very cold climates
1048698 Home leave allowances
1048698 Spouse assistance allowances
REWARDS SYSTEM
Reward System as Followed by Organisations
1 Incentive and Rewards
2 Competency Related Pay
3 Skill Based Pay
4 Team Based Rewards
5 Profit Sharing
7 Employee Ownership
8 Statutory and Voluntary Benefits
FORMS OF RECOGNITION
Examples of Formal Recognition
1 Milestone Service Anniversary Awards (5101520 25 years of service)
2 Ideas Improvement amp Performance Awards
3 Service Awards
a) Teamworkleadership
b) Customer Service
c) Citizenship
d) Innovation
e) Attendance
4 Awards would include
a) PlaquesDesk trophies
b) Certificates
c) GiftsCertificates
d) Picture in the webpage
FORMS OF RECOGNITION
Examples of Informal Recognition
1 Team Building Retreats
2 Acknowledgement of DeptDivision goals achieved
3 Project Completion meals
4 Birthday cakes and cards
5 Picnics
6 Staff Appreciation Day
7 Holiday Parties
8 Dress-up Days
9 Corporate Merchandise
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-
JOB EVALUATION TECHNIQUE
The general step-wise procedure for job evaluation is as under
1 Select the group of jobs
2 Study the job (job analysis)
3 Prepare job description ndash approval
4 Device an evaluation plan ndash common characteristicstraits
5 Establish a committee of raters and rateevaluate
6 Group or classify the jobs
7 Convert job grades to money value along with Wage survey
8 Obtain approval from Union and Management
9 Establish a suitable grievance procedure
COMPONENTS OF COMPENSATION SYSTEM
1 Basic WagesSalaries
2 Dearness Allowance
3 Bonus
4 Commissions
5 Mixed Plans
6 Piece Rate Wages
7 Sign on Bonuses
8 Profit Sharing Payments
9 Fringe Benefits
COMPENSATION EQUITY
1048698 External Equity Employees are paid comparably to those who perform similar jobs in other industries
1048698 Internal Equity Employees are paid according to relative value of their jobs within an organisation
1048698 Employee Equity Individuals performing similar jobs for the same firm are rewarded according to factors unique to the employee such as performance level or seniority
1048698 Team Equity More productive teams receive greater rewards than less productive groups
INTERNATIONAL COMPENSATION
Elements of Expatriate Compensation
Basic Pay Amount of money that an expatriate receives from home country Used for
Bonus calculation
Benefits
1048698 One third of compensation
1048698 Extra vacation special leaves air fares for their families for an annual visit home
emergency leaves
1048698 Housing
1048698 Utilities ndash air conditioner bottled water electricity telephone call expenses
1048698 Car ndash car expenses chauffeur hired vehicle
Helping hands servants gardeners security
1048698 Club subscription
1048698 Educational benefits
Allowances
1048698 COLA ndash cost of living between home country and foreign country inflation
1048698 Relocation allowances
1048698 Hardship allowances
1048698 Separation allowances
1048698 Clothing allowances ndash very cold climates
1048698 Home leave allowances
1048698 Spouse assistance allowances
REWARDS SYSTEM
Reward System as Followed by Organisations
1 Incentive and Rewards
2 Competency Related Pay
3 Skill Based Pay
4 Team Based Rewards
5 Profit Sharing
7 Employee Ownership
8 Statutory and Voluntary Benefits
FORMS OF RECOGNITION
Examples of Formal Recognition
1 Milestone Service Anniversary Awards (5101520 25 years of service)
2 Ideas Improvement amp Performance Awards
3 Service Awards
a) Teamworkleadership
b) Customer Service
c) Citizenship
d) Innovation
e) Attendance
4 Awards would include
a) PlaquesDesk trophies
b) Certificates
c) GiftsCertificates
d) Picture in the webpage
FORMS OF RECOGNITION
Examples of Informal Recognition
1 Team Building Retreats
2 Acknowledgement of DeptDivision goals achieved
3 Project Completion meals
4 Birthday cakes and cards
5 Picnics
6 Staff Appreciation Day
7 Holiday Parties
8 Dress-up Days
9 Corporate Merchandise
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-
COMPONENTS OF COMPENSATION SYSTEM
1 Basic WagesSalaries
2 Dearness Allowance
3 Bonus
4 Commissions
5 Mixed Plans
6 Piece Rate Wages
7 Sign on Bonuses
8 Profit Sharing Payments
9 Fringe Benefits
COMPENSATION EQUITY
1048698 External Equity Employees are paid comparably to those who perform similar jobs in other industries
1048698 Internal Equity Employees are paid according to relative value of their jobs within an organisation
1048698 Employee Equity Individuals performing similar jobs for the same firm are rewarded according to factors unique to the employee such as performance level or seniority
1048698 Team Equity More productive teams receive greater rewards than less productive groups
INTERNATIONAL COMPENSATION
Elements of Expatriate Compensation
Basic Pay Amount of money that an expatriate receives from home country Used for
Bonus calculation
Benefits
1048698 One third of compensation
1048698 Extra vacation special leaves air fares for their families for an annual visit home
emergency leaves
1048698 Housing
1048698 Utilities ndash air conditioner bottled water electricity telephone call expenses
1048698 Car ndash car expenses chauffeur hired vehicle
Helping hands servants gardeners security
1048698 Club subscription
1048698 Educational benefits
Allowances
1048698 COLA ndash cost of living between home country and foreign country inflation
1048698 Relocation allowances
1048698 Hardship allowances
1048698 Separation allowances
1048698 Clothing allowances ndash very cold climates
1048698 Home leave allowances
1048698 Spouse assistance allowances
REWARDS SYSTEM
Reward System as Followed by Organisations
1 Incentive and Rewards
2 Competency Related Pay
3 Skill Based Pay
4 Team Based Rewards
5 Profit Sharing
7 Employee Ownership
8 Statutory and Voluntary Benefits
FORMS OF RECOGNITION
Examples of Formal Recognition
1 Milestone Service Anniversary Awards (5101520 25 years of service)
2 Ideas Improvement amp Performance Awards
3 Service Awards
a) Teamworkleadership
b) Customer Service
c) Citizenship
d) Innovation
e) Attendance
4 Awards would include
a) PlaquesDesk trophies
b) Certificates
c) GiftsCertificates
d) Picture in the webpage
FORMS OF RECOGNITION
Examples of Informal Recognition
1 Team Building Retreats
2 Acknowledgement of DeptDivision goals achieved
3 Project Completion meals
4 Birthday cakes and cards
5 Picnics
6 Staff Appreciation Day
7 Holiday Parties
8 Dress-up Days
9 Corporate Merchandise
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-
COMPENSATION EQUITY
1048698 External Equity Employees are paid comparably to those who perform similar jobs in other industries
1048698 Internal Equity Employees are paid according to relative value of their jobs within an organisation
1048698 Employee Equity Individuals performing similar jobs for the same firm are rewarded according to factors unique to the employee such as performance level or seniority
1048698 Team Equity More productive teams receive greater rewards than less productive groups
INTERNATIONAL COMPENSATION
Elements of Expatriate Compensation
Basic Pay Amount of money that an expatriate receives from home country Used for
Bonus calculation
Benefits
1048698 One third of compensation
1048698 Extra vacation special leaves air fares for their families for an annual visit home
emergency leaves
1048698 Housing
1048698 Utilities ndash air conditioner bottled water electricity telephone call expenses
1048698 Car ndash car expenses chauffeur hired vehicle
Helping hands servants gardeners security
1048698 Club subscription
1048698 Educational benefits
Allowances
1048698 COLA ndash cost of living between home country and foreign country inflation
1048698 Relocation allowances
1048698 Hardship allowances
1048698 Separation allowances
1048698 Clothing allowances ndash very cold climates
1048698 Home leave allowances
1048698 Spouse assistance allowances
REWARDS SYSTEM
Reward System as Followed by Organisations
1 Incentive and Rewards
2 Competency Related Pay
3 Skill Based Pay
4 Team Based Rewards
5 Profit Sharing
7 Employee Ownership
8 Statutory and Voluntary Benefits
FORMS OF RECOGNITION
Examples of Formal Recognition
1 Milestone Service Anniversary Awards (5101520 25 years of service)
2 Ideas Improvement amp Performance Awards
3 Service Awards
a) Teamworkleadership
b) Customer Service
c) Citizenship
d) Innovation
e) Attendance
4 Awards would include
a) PlaquesDesk trophies
b) Certificates
c) GiftsCertificates
d) Picture in the webpage
FORMS OF RECOGNITION
Examples of Informal Recognition
1 Team Building Retreats
2 Acknowledgement of DeptDivision goals achieved
3 Project Completion meals
4 Birthday cakes and cards
5 Picnics
6 Staff Appreciation Day
7 Holiday Parties
8 Dress-up Days
9 Corporate Merchandise
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-
INTERNATIONAL COMPENSATION
Elements of Expatriate Compensation
Basic Pay Amount of money that an expatriate receives from home country Used for
Bonus calculation
Benefits
1048698 One third of compensation
1048698 Extra vacation special leaves air fares for their families for an annual visit home
emergency leaves
1048698 Housing
1048698 Utilities ndash air conditioner bottled water electricity telephone call expenses
1048698 Car ndash car expenses chauffeur hired vehicle
Helping hands servants gardeners security
1048698 Club subscription
1048698 Educational benefits
Allowances
1048698 COLA ndash cost of living between home country and foreign country inflation
1048698 Relocation allowances
1048698 Hardship allowances
1048698 Separation allowances
1048698 Clothing allowances ndash very cold climates
1048698 Home leave allowances
1048698 Spouse assistance allowances
REWARDS SYSTEM
Reward System as Followed by Organisations
1 Incentive and Rewards
2 Competency Related Pay
3 Skill Based Pay
4 Team Based Rewards
5 Profit Sharing
7 Employee Ownership
8 Statutory and Voluntary Benefits
FORMS OF RECOGNITION
Examples of Formal Recognition
1 Milestone Service Anniversary Awards (5101520 25 years of service)
2 Ideas Improvement amp Performance Awards
3 Service Awards
a) Teamworkleadership
b) Customer Service
c) Citizenship
d) Innovation
e) Attendance
4 Awards would include
a) PlaquesDesk trophies
b) Certificates
c) GiftsCertificates
d) Picture in the webpage
FORMS OF RECOGNITION
Examples of Informal Recognition
1 Team Building Retreats
2 Acknowledgement of DeptDivision goals achieved
3 Project Completion meals
4 Birthday cakes and cards
5 Picnics
6 Staff Appreciation Day
7 Holiday Parties
8 Dress-up Days
9 Corporate Merchandise
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-
REWARDS SYSTEM
Reward System as Followed by Organisations
1 Incentive and Rewards
2 Competency Related Pay
3 Skill Based Pay
4 Team Based Rewards
5 Profit Sharing
7 Employee Ownership
8 Statutory and Voluntary Benefits
FORMS OF RECOGNITION
Examples of Formal Recognition
1 Milestone Service Anniversary Awards (5101520 25 years of service)
2 Ideas Improvement amp Performance Awards
3 Service Awards
a) Teamworkleadership
b) Customer Service
c) Citizenship
d) Innovation
e) Attendance
4 Awards would include
a) PlaquesDesk trophies
b) Certificates
c) GiftsCertificates
d) Picture in the webpage
FORMS OF RECOGNITION
Examples of Informal Recognition
1 Team Building Retreats
2 Acknowledgement of DeptDivision goals achieved
3 Project Completion meals
4 Birthday cakes and cards
5 Picnics
6 Staff Appreciation Day
7 Holiday Parties
8 Dress-up Days
9 Corporate Merchandise
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-
FORMS OF RECOGNITION
Examples of Formal Recognition
1 Milestone Service Anniversary Awards (5101520 25 years of service)
2 Ideas Improvement amp Performance Awards
3 Service Awards
a) Teamworkleadership
b) Customer Service
c) Citizenship
d) Innovation
e) Attendance
4 Awards would include
a) PlaquesDesk trophies
b) Certificates
c) GiftsCertificates
d) Picture in the webpage
FORMS OF RECOGNITION
Examples of Informal Recognition
1 Team Building Retreats
2 Acknowledgement of DeptDivision goals achieved
3 Project Completion meals
4 Birthday cakes and cards
5 Picnics
6 Staff Appreciation Day
7 Holiday Parties
8 Dress-up Days
9 Corporate Merchandise
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-
FORMS OF RECOGNITION
Examples of Informal Recognition
1 Team Building Retreats
2 Acknowledgement of DeptDivision goals achieved
3 Project Completion meals
4 Birthday cakes and cards
5 Picnics
6 Staff Appreciation Day
7 Holiday Parties
8 Dress-up Days
9 Corporate Merchandise
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-
Thank you
All the best for the exams
88
- Essentials of HRM - Mrs Nora Bhatia
- THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES
- What is HRM
- OBJECTIVES OF HRM
- HRM FUNCTIONS
- HRM CHALLENGES
- JOB ANALYSIS AND JOB DESIGN
- Job Analysis
- TYPES OF INFORMATION FOR JOB ANALYSIS
- METHODS OF GATHERING INFORMATION FOR JOB ANALYSIS
- Slide 11
- USE OF JOB ANALYSIS
- JOB DESIGN
- Slide 14
- HUMAN RESOURCE PLANNING
- OBJECTIVES OF HRP
- PROCESS OF HRP
- TECHNIQUES OF HR DEMAND FORECASTING
- TECHNIQUES OF HR DEMAND FORECASTING (2)
- ATTRACTING THE TALENT RECRUITMENT SELECTION AND OUTSOURCING
- SOURCES OF RECRUITMENT
- SOURCES OF RECRUITMENT (2)
- THE SELECTION PROCESS
- Interviews
- PROBLEMS AFFECTING THE OBJECTIVITY OF SELECTION INTERVIEWS
- Slide 26
- COMPETENCY MAPPING AND ASSESSMENT CENTRES
- Competencies
- VARIOUS COMPETENCY MODELS
- HISTORY OF ASSESSMENT CENTRES
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE
- MEASUREMENT TOOLS USES IN AN ASSESSMENT CENTRE (2)
- Difference between Assessment Centre and Development Center
- PERFORMANCE PLANNING AND REVIEW
- GOALS OF PERFORMANCE APPRAISAL
- PROCESS OF PERFORMANCE APPRAISAL
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (2)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (3)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (4)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (5)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (6)
- TECHNIQUESMETHODS OF PERFORMANCE APPRAISALS (7)
- Problems of RatingRating Biases
- PERFORMANCE COACHING
- THE COACHING DISCUSSION
- THE COACHING DISCUSSION (2)
- MENTORING
- MENTORING - Kinds
- POTENTIAL APPRAISAL CAREER AND SUCCESSION PLANNING
- POTENTIAL APPRAISAL
- POTENTIAL APPRAISAL (2)
- CAREER PLANNING
- SUCCESSION PLANNING
- HR MEASUREMENT AND AUDIT
- WHY CONDUCT AN HR AUDIT
- THE HR AUDIT PROCESS
- HUMAN RESOURCE ACCOUNTING
- METHODS OF HUMAN RESOURCE ACCOUNTING
- HUMAN RESOURCE ACCOUNTING (2)
- HUMAN RESOURCE ACCOUNTING (3)
- HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)
- HRIS ndash APPLICATION AND UTILITIES
- HRIS ndash DISADVANTAGES
- HUMAN RESOURCE DEVELOPMENT SYSTEM
- HRD
- HRDORGANIZATION ALIGNMENT MODEL
- TRAINING AND DEVELOPMENT
- NEED FOR TRAINING AND DEVELOPMENT
- THE TRAINING PROCESS
- Needs Assessment
- Methods and Techniques of Training
- Training Methods for Management Development
- Slide 74
- Kirkpatrick Model for Evaluating Effectiveness of Training Prog
- SPECIAL TOPICS IN TRAINING AND DEVELOPMENT
- COMPENSATION AND REWARDS
- COMPENSATION OVERVIEW
- Slide 79
- Slide 80
- JOB EVALUATION TECHNIQUE
- COMPONENTS OF COMPENSATION SYSTEM
- COMPENSATION EQUITY
- INTERNATIONAL COMPENSATION
- REWARDS SYSTEM
- FORMS OF RECOGNITION
- FORMS OF RECOGNITION (2)
- Thank you All the best for the exams
-