essentials of hrm - nora bhatia

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1 Essentials of HRM - Mrs Nora Bhatia

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Page 1: Essentials of HRM - Nora Bhatia

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
Page 2: Essentials of HRM - 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
Page 3: Essentials of HRM - Nora Bhatia

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
Page 4: Essentials of HRM - Nora Bhatia

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
Page 5: Essentials of HRM - Nora Bhatia

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
Page 6: Essentials of HRM - Nora Bhatia

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
Page 7: Essentials of HRM - Nora Bhatia

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
Page 8: Essentials of HRM - Nora Bhatia

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
Page 9: Essentials of HRM - Nora Bhatia

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
Page 10: Essentials of HRM - Nora Bhatia

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
Page 11: Essentials of HRM - Nora Bhatia

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
Page 12: Essentials of HRM - Nora Bhatia

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
Page 13: Essentials of HRM - Nora Bhatia

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
Page 14: Essentials of HRM - Nora Bhatia

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
Page 15: Essentials of HRM - Nora Bhatia

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
Page 16: Essentials of HRM - Nora Bhatia

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
Page 17: Essentials of HRM - Nora Bhatia

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
Page 18: Essentials of HRM - Nora Bhatia

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
Page 19: Essentials of HRM - Nora Bhatia

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
Page 20: Essentials of HRM - Nora Bhatia

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
Page 21: Essentials of HRM - Nora Bhatia

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
Page 22: Essentials of HRM - Nora Bhatia

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
Page 23: Essentials of HRM - Nora Bhatia

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
Page 24: Essentials of HRM - Nora Bhatia

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
Page 25: Essentials of HRM - Nora Bhatia

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
Page 26: Essentials of HRM - Nora Bhatia

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
Page 27: Essentials of HRM - Nora Bhatia

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
Page 28: Essentials of HRM - Nora Bhatia

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
Page 29: Essentials of HRM - Nora Bhatia

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
Page 30: Essentials of HRM - Nora Bhatia

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
Page 31: Essentials of HRM - Nora Bhatia

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
Page 32: Essentials of HRM - Nora Bhatia

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
Page 33: Essentials of HRM - Nora Bhatia

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
Page 34: Essentials of HRM - Nora Bhatia

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
Page 35: Essentials of HRM - Nora Bhatia

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
Page 36: Essentials of HRM - Nora Bhatia

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
Page 37: Essentials of HRM - Nora Bhatia

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
Page 38: Essentials of HRM - Nora Bhatia

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
Page 39: Essentials of HRM - Nora Bhatia

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
Page 40: Essentials of HRM - Nora Bhatia

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
Page 41: Essentials of HRM - Nora Bhatia

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
Page 42: Essentials of HRM - Nora Bhatia

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
Page 43: Essentials of HRM - Nora Bhatia

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
Page 44: Essentials of HRM - Nora Bhatia

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
Page 45: Essentials of HRM - Nora Bhatia

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
Page 46: Essentials of HRM - Nora Bhatia

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
Page 47: Essentials of HRM - Nora Bhatia

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
Page 48: Essentials of HRM - Nora Bhatia

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
Page 49: Essentials of HRM - Nora Bhatia

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
Page 50: Essentials of HRM - Nora Bhatia

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
Page 51: Essentials of HRM - Nora Bhatia

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
Page 52: Essentials of HRM - Nora Bhatia

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
Page 53: Essentials of HRM - Nora Bhatia

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
Page 54: Essentials of HRM - Nora Bhatia

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
Page 55: Essentials of HRM - Nora Bhatia

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
Page 56: Essentials of HRM - Nora Bhatia

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
Page 57: Essentials of HRM - Nora Bhatia

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
Page 58: Essentials of HRM - Nora Bhatia

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
Page 59: Essentials of HRM - Nora Bhatia

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
Page 60: Essentials of HRM - Nora Bhatia

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
Page 61: Essentials of HRM - Nora Bhatia

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
Page 62: Essentials of HRM - Nora Bhatia

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
Page 63: Essentials of HRM - Nora Bhatia

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
Page 64: Essentials of HRM - Nora Bhatia

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
Page 65: Essentials of HRM - Nora Bhatia

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
Page 66: Essentials of HRM - Nora Bhatia

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
Page 67: Essentials of HRM - Nora Bhatia

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
Page 68: Essentials of HRM - Nora Bhatia

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
Page 69: Essentials of HRM - Nora Bhatia

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
Page 70: Essentials of HRM - Nora Bhatia

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
Page 71: Essentials of HRM - Nora Bhatia

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
Page 72: Essentials of HRM - Nora Bhatia

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
Page 73: Essentials of HRM - Nora Bhatia

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
Page 74: Essentials of HRM - Nora Bhatia

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
Page 75: Essentials of HRM - Nora Bhatia

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
Page 76: Essentials of HRM - Nora Bhatia

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
Page 77: Essentials of HRM - Nora Bhatia

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
Page 78: Essentials of HRM - Nora Bhatia

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
Page 79: Essentials of HRM - Nora Bhatia

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
Page 80: Essentials of HRM - Nora Bhatia

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
Page 81: Essentials of HRM - Nora Bhatia

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
Page 82: Essentials of HRM - Nora Bhatia

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
Page 83: Essentials of HRM - Nora Bhatia

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
Page 84: Essentials of HRM - Nora Bhatia

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
Page 85: Essentials of HRM - Nora Bhatia

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
Page 86: Essentials of HRM - Nora Bhatia

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