|



 

|
|

‡ People are different: unique personalities; different emotional
responses to diff stimuli; diff attitudes, values, motives, mode of
thought
‡ Diff behaviour to reactions to promises, praise or criticism;
behaviour neither consistent or readily predictable
‡ A human being him / herself determines what he / she
contributes. Hence individuals, not orgns create excellence.
‡ Peter Drucker: ³Man, of all the resources available to man, can
grow and develop´.
‡ Some aspects where humans are different: Motivation;
Sociability; Morality; Development
_
|

v. Pervasive force:
- Present in all enterprises
- Permeates all level of mgnt in orgns
2. Action oriented:
- Focuses on action rather than record keeping, written procedures
3. Individually oriented:
- Helps individuals develop their potential fully
- Encourages individuals to give off their best
4. People oriented:
- All about people at work; as individuals and groups
- Puts people on assigned jobs to produce good results
_
|

ß. Development oriented:
- Aims to develop potential of individuals
6. Integrating mechanism:
- Tries to build and maintain cordial relations between people within, between
groups and across all levels
7. Auxiliary service:
- Assist and advice operational groups / line functions on how to manage
people effectively
8. Inter-disciplinary function:
- A multi disciplinary activity, utilizing knowledge and inputs drawn from
psychology, sociology, anthropology, economics, etc.
K
 |

v. Personnel aspects:
Manpower planning; Recruitment, selection, placement,
induction; Transfer; Promotion; Training & development;
Layoff & retrenchment; Remuneration; Incentives;
Productivity; etc.
2. Welfare aspect:
Working conditions & amenities like canteen, rest rooms,
crèches; Housing; Transport; Medical assistance; Education;
Health & safety; Recreation facilities; etc.
3. Industrial relations aspect:
Union management relations; joint consultations; Collective
bargaining; Grievance and disciplinary procedures;
settlement of disputes; etc.
|




  
v. Getting in People:
- Planning for people
- Analysing the assignment
- Understanding roles
- Understanding jobs
- Understanding role-job fit
- Recruitment, selection & placement
2. Retaining people:
- Induction
- Training & development
- Performance management
- Rewards management
|




  
3. Letting people go:
- Retrenchment
- Outplacement
- Sacking
- Resignation
4. HR research:
- Employee surveys
- HR audit
- Research on all above activities
ß. Industrial Relations:
- Equal opportunity
- Employee health
- Handling grievances & labour relations
_
 
   



| 

v. Line manager¶s role:
- Placing right people on the job
- Inducting people into the department
- Training people in functional areas
- Recommending and assisting for training in other areas
- Improving productivity of personnel
- Gaining creative cooperation and developing smooth working relationships
- Implementing & interpreting company¶s policies and procedures
- Controlling personnel costs
- Developing abilities in each personnel
- Appraising performance and providing constructive feedback
- Creating and maintaining department morale
- Protecting employees health and physical condition
- Assisting employees in their career planning
_
 
  
2. HR function roles:
- Assist in HR plans for the entire orgn; integrate unit plans
- Assist top management in incorporating HR issues at corporate levels
- Assist line managers in sourcing for human resources
- Assist in inducting personnel in the orgn
- Organize for training & development:
- compile trg needs; prepare trg calendar; administer trg implementation;
assist line function in implementing learning; database of trg undergone
- Performance management:
- work on appropriate perf evaluation systems & procedures; administer
systems; prepare trg needs data; data for promotions, transfers, etc.
_
 
  
2. HR function roles (contd.):
- Rewards management:
- Salary surveys; Job evaluation; Prepare systems for rewards; Administer
reward systems; Coordination with finance for reward disbursement;
Working on salary & incentive design and administration
- Administration:
- Welfare schemes design and admin; Travel policies and implementation;
canteen; etc.
- Industrial relations:
- Guide on labour issues; collective bargaining; terminating services; etc.
- HR research:
- Internal HR climate survey; Designing new methods of appraisals, orgn
structure design and modification; new remuneration systems; HR audit
| 

  
v. Human resources planning; Recruitment, selection, induction:
- Competent employees adopted to organization culture
2. Training & development; Career development:
- Competent employees with up-to-date skills and knowledge
3. Motivation, Appraisal; Rewards & punishment:
- Competent employees who desire to exert high effort
4. Benefits, safety, satisfactory union relations:
- Competent employees who are committed to the organization and satisfied
with their jobs
ß. Changing conditions requires on-going research and concern
for the future
|


A. Managerial Functions:
Planning; Organizing; Directing; Controlling
B. Operative functions:
v. Employment:
- Job Analysis; Understanding roles
- Human resources planning
- Recruitment, Selection & Placement; Induction & Orientation
2. Human resources Development:
- Performance Appraisal
- Training & development
- Career planning & development
- Organizational development
|


3. Compensation:
- Job evaluation
- Wage & salary administration
- Incentives; Bonus; Fringe benefits
- Social security measures
4. Human relations:
ß. Effectiveness of HRM:
- Organizational health
- Human resources accounting
- Human resources audit
- Human resources research
|
 
|


‡ ³Our people are our most important assets´
‡ Problem: people do not fit the strict financial definition of an
asset:
- Cannot be transacted at will
- Contribution is individual and volatile
- Cannot be valued according to traditional financial processes
‡ Intangible assets: knowledge; competence; enthusiasm
- Part of the intellectual capital
- Jack Welch: 3 key measures in business, starting from the most
important:
- Employee satisfaction
- Customer satisfaction
- Cash flow
|


‡ People manage the tangible asset and also maintain and grow
the intangible ones
‡ Need a balance: People as cost & as assets
‡ We lack a commonly accepted framework for assessing the
value & contribution of people
‡ When one leaves and another joins, there is an impact on
human µstock¶.
‡ Need to focus on long term in getting people
‡ Mergers & acquisitions
‡ Need to know how to obtain relevant and reliable data on
intangible assets within the orgn
|


‡ Need to measure the driver of performance as much as the
outcome themselves:
- Acquiring new personnel
- Rebalancing the workforce
- Maximizing performance & productivity
- Developing individuals & groups
- Resource allocation & options for outsourcing
- Investing in people and organizational development
- Setting up partnership and alliances
‡ Difficult to measure human behaviour; number of assumptions
need to be made.
‡ People loan their human capital to us and we provide an
environment in which they can contribute value to the
stakeholders
|


‡ People as assets + People motivation & commitment = People
committed to added value
‡ People as asset: is the cost of a person more that the value
they provide to the orgn?
‡ Motivation & commitment: the person¶s contribution is strongly
influenced by their working environment
‡ When costs need to be reduced, mgnt should seek out those
that are not value creators
‡ The way we provide value to people conditions their motivation,
commitment and loyalty and hence their contribution and value
to other stakeholders
|


‡ Orgns can provide value to employees:
- Salaries, benefits, bonuses
- Equity in the firm
- Challenges and interesting work
- Equipment and resources not otherwise available
- Being associated with an orgn of repute
- Status and self-esteem
- Recognition: managers, peers, publically
- Opportunities for personal growth and career development
- Interesting colleagues to work with
- A satisfying and stimulating environment
- Social events
- Opportunities for travel
á á
 á



á
 
‡ May or may not be in written form
‡ Should be for treating employees with dignity and securing
willing cooperation
‡ Management¶s attitude to employee is one major area which
relates to personnel philosophy of the company
‡ Employees need to be regarded as partners in production or as
a precious asset with constructive potentials
‡ Personnel policies relate to the personnel philosophy accepted
by the management
á
 á

‡ A policy is a plan of action; a statement of intention committing
the mgnt to a general course of action.
‡ Personnel policies relate to:
- Hiring of manpower
- Terms & conditions of employment
- Compensation payment
- Hours of work
- Training & development
- Promotions, transfers, etc.
- Facilities (housing, travel, uniforms, etc.)
- Concessions given to employees, etc.
á
 á

‡ Personnel policies are the principles and rules of conduct which
formulate, redefine, break into details and decide a no of
actions that govern the relationship with employees in the
attainment of orgn objectives
‡ They are the statements of intention indicating what the orgn
proposes to do and suggests the values & view points which
dominate the orgn actions
‡ They act as guidelines which indicate the intentions of the orgn
in recruitment, selection, compensation, etc. ± serve as a road
map in regard to decision making on personnel matters &
problems
á
 á

‡ Personnel policies framed by the mgnt should be always in
writing:
- Written policies ensure uniformity of application, minimizes favouritism and
discrimination among the personnel and ensures continuity of action
- They make a commitment on the part of the orgn
- There is no µpersonal interpretation¶ of orgn intents
‡ Benefits of Personnel Policy manual:
- Clear explanation of existing policies
- Useful tool in supervisory training
- Document of company¶s faith on fair personnel policies
- Readymade guide to personnel policies & procedures
- Avoids indecision on personnel matters
- Acts as a communication device
á
 á




‡ Objectives of the manual
‡ Orgn philosophy
‡ How to use the manual
‡ Authority of the manual
‡ Privileges & resp of supervision & dept heads
‡ Existing policies, practices & procedures on personnel matters
‡ Employee relations policies
‡ Hiring policies
‡ Job fundamentals & Job training policy
‡ Hours of work
‡ Pay policies & procedures, rewards & monetary incentives
‡ Promotions, transfers & layoffs
‡ Employee benefits & services
á
 á




‡ Attendance, punctuality & absenteeism
‡ Employee health and safety rules
‡ Security benefits and rules
‡ Company and plant rules
‡ Cost control
‡ Grievance & complaint procedure
‡ Internal communication
‡ Termination of employment
‡ Labour relations & employee participation
‡ Personnel forms
‡ Performance appraisal
‡ Discipline, disciplinary action and grievance addressal
 K  

|

An effective HR manager understands the

business needs of the organization.
The HR manager is a Mentor / Coach /
Counselor for line managers in the area of
Human Resources issues
m
   
  |

‡ Globalization:
- More competition; need to be world class; More productivity; Quality
consciousness; more competent personnel
‡ Technological trends:
- Internet based organization
- Video conferencing
‡ Trends in nature of work:
‡ Automated plants
‡ Teamwork ± self-managed teams
‡ Self-oriented jobs
‡ Outsourcing
‡ Internet based ordering
‡ Knowledge based workers
m
  
 |

‡ HRM role more strategic:
- Strategic HRM part of strategic planning
- Match internal strengths with external opportunities
- Where are we now in business, we want to be and how should we get there?
- Formulating & executing HR policies & practices that produce employee
competencies & behaviours the company needs to achieve strategic aims
- HR partners top mgnt to design and execute company strategies
‡ Creating high performance work systems:
‡ Focus on productivity, performance
‡ Call centers ± co emp can interact with HR personnel regardless of location
‡ Outsource activities to external agencies
‡ Personality teats; training, safety issues
‡ Self managed teams; decentralized decision making
‡ Pay for performance; transformational leadership
K


|

‡ Superior mgrs shape dept policies & practices so they make
sense, in terms of (or align with) company strategic aims
‡ Strategic management: match company¶s capabilities with
demands of the environment
‡ It is: decide what business you¶re in now and which ones you
want to be in, formulate a strategy for getting there and execute
your plan
‡ Some company strategies:
- Diversification
- Vertical integration
- Consolidation
- Geographical exmansion
‡ Competitive advantage: factors that allow an orgn to
differentiate its products & services:
- Southwest Airways ± low cost airlines ± employment policies: motivated and
flexible force
- Larger airlines like Delta ± restrictive union rules, work rules & salary structures
- Today ± technology rarely sets an orgn apart:
- Toyota better because of culture; HR policies
‡ Strategic HRM: formulating & executing HR policies & practices
that produce needed employee competencies & behaviour
- Southwest Airways: vß mts turnaround strategy
- Dell: low cost leader; Intranet web application ± manager perform their own HR
tasks
‡ HR managers must need an in-depth understanding of the
value creation proposition of the firm
- Basics of strategic planning
- Basic business functions
‡ Strategic execution imp part of HR role
‡ Another role is strategic formulation
- Supporting top management
- Retention, recruitment, training
- SWOT analysis
‡ HRM identifies scorecard measures to measure the extent to
which new policies & practices are actually producing the reqd
employee competencies and skills, thus supporting mgnt¶s
strategic goals
|K
 
 
K





‡ Mgnt judges HR functions based on whether it creates value to
the company ± contributing in a measurable way to achieving
company¶s strategic goals:
- Scorecard shows the metrics the firm uses to measure HR activities & HR
behaviours resulting from the activities & the strategically relevant orgn
outcomes of these behaviours.
- Highlights casual link between HR activities; emergent behaviours & resulting
firmwide strategic outcomes & performance
‡ To evolve the HR scorecard, need to know:
- The company¶s strategy
- Casual links between HR activities, employee behaviour; orgn outcomes and
orgn perf.
- Mgr needs metrics to measure the activities and results involved
| K




  
v. Define the business strategy:
2. Outline the cos value chain:
- What are the co¶s required activities
- Value chain: identifies the primary activities that create value for
customers and the related support activities
- Each activity is part of the process of designing, producing, marketing,
and delivering the co¶s product or services
3. Outline a Strategy map:
- A diagram that summarizes the chain of major inter-related activities that
contribute to the orgn¶s success
- South west airways: activities to deliver low-cost, convenient service
4. Identify strategically reqd orgn outcomes:
- Dell: quick competent & courteous tech service by phone
- South West Airways: Cheapest airways; on time
 
ß. Identify the reqd work force competencies & behaviour:
- To deliver the strategically relevant orgn outcomes
6. Identify the reqd HR systems policies & Activities:
- Dell: Support in trg & providing relevant checklist to deliver tech service
- S W Airways: Multi tasking, motivation; performance attitudes
7. Create HR Score card:
- Make a visual or computerized score card
- Link in a casual way the selected HR activities & emergent employee behaviour and
the resulting firm-wide strategic outcome & performance
- The points to work on include:
- The basic strategic themes
- Strategic HR activities matrix
- Strategically relevant emergent employees capabilities & behaviours
- Strategically relevant customer & orgn outcome metrics
- Strategic performance metrics
 
8. Choose HR scorecard measures:
- Use a mixture of financial and non-financial measures: short & long term
goals; external & internal goals.
- Sample performance measures:
- Employee attitude survey measures
- Employee turnover
- Level of cross-cultural teamwork
- Level of organizational learning
- Employee productivity, etc.
9. Summarize the scorecard measure in a digital dashboard
- SW Airways: turnaround times; attracting & keeping customers; on-time flgts
v . Monitor, predict & evaluate:
|
 




K | K
‡ Need to incorporate all the forms in the processes
‡ HRIS: Interrelated components working together to collect,
process, store and disseminate information to support decision
making, coordination, control, analysis and visualization of an
organization¶s HRM activities
‡ Help shift HR¶s attention from transaction processing to
strategic HR
‡ Remove the time spent in processing transactions
•
ï
    
‡ Jobs determine standard of living, places of residence, status
and even one¶s sense of worth
‡ Jobs help orgns accomplish their objectives
‡ Jobs are not static; subject to change
‡ The job is what the incumbent makes of it
‡ Job Analysis: A formal and detailed examination of jobs ± tell
the things that people do in human work
‡ Involves the identification of the required tasks, the knowledge
and skills necessary for performing them and the conditions
under which they must be performed
ï

‡ Job analysis provides the foll info:
- Job identification: title, etc.
- Important characteristics: location, supervision, hazards, etc.
- What the typical worker does: simplicity, routine, resp.
- Job duties
- Material and equip used on the jobHow a job is done
- Reqd personnel attributes
- Job relationship
- Mental skills reqd
- Education, experience reqd
ï
  
‡ HR Planning
‡ Recruitment & Selection
‡ Placement & Orientation
‡ Training
‡ Career counseling
‡ Employee safety
‡ Performance & Potential appraisal
‡ Job design & re-design
ï

‡ Process of Job Analysis results in two sets of data:
v. Job Description: Statement about the job containing items
such as ± job title, location, job summary, duties, machines,
tools & eqpt used, supervision given or received, etc.
2. Job Specification: A statement of human qualifications
necessary to do the job. Usually contains such items as ±
education, experience, training, judgment, initiative,
responsibilities, communication skills, etc.
  
‡ Job design integrates work content, the rewards and the
qualifications required for each job in a way that meets the
needs of employees and the orgn
‡ It involves the foll steps:
- The specification of individual tasks
- The specification of the methods of performing each task
- The combination of tasks into specific jobs to be assigned to individuals
‡ While designing the job, requirements of the orgn and the
individual needs of the job holder must be considered
‡ Can affect productivity and costs
‡ For an employee, motivation and job satisfaction are affected
by the match between job factors and personal needs
Ò



‡ A job is divided into parts and distributed among individuals
‡ Work simplification is introduced when the job designers feel
that the jobs are not specialized enough
‡ Over-simplification can result in boredom, errors, resignations
‡ Job Rotation:
‡ Systematic movement of employees from one job to another
‡ The employees are given an opportunity to perform different
jobs, which enriches their skills, experience and ability to
perform different jobs
 

  
‡ Expanding the scope of the job by aggregating two or more
jobs into a single one
‡ Involves expanding the no of duties assigned to a given job
‡ Brings out some sense of wholeness in the job
‡ Reduces monotony & boredom by providing a more complete
or whole job to perform
‡ Helps increase interest in work efficiency
‡ Involves assigning more tasks of similar nature
‡ Called horizontal loading ± is more appropriate in case of
manual, technical and clerical work
 

  
‡ Based on the assumption that jobs should be more interesting
and challenging:
‡ Will provide psychological satisfaction to employees
‡ Will mean making a job more interesting, satisfying,
responsible, higher in status and more rewarding
‡ Possible by widening the scope of the job and adding a sense
of achievement, increasing responsibility and provide
opportunities for advancement and growth
‡ Involves a vertical loading of the job so that job holder himself
controls the planning and execution of the job
 

  
‡ Characteristics of Job enrichment:
- Variety
- Task identity
- Task significance
- Autonomy
- Feedback
ï  !




‡ An intact group of employees who are resp for a µwhole¶ work
process or segment that delivers a product / service to an
internal / external customer
‡ The team members work together and improve their operations
‡ They have a clear sense of purpose and are effective in taking
decisions and ensure the quality of work assigned to the team
‡ With empowered teams managers lost in terms of status,
authority and power
 


‡ Determining the relative worth of a job in an orgn by comparing
it with the other jobs within the orgn and with the job market
outside
‡ Jobs evaluated on the basis of their content and placed in the
order of their importance
‡ A wage / salary hierarchy is based on such job evaluation ±
employees given diff wages as per the relative imp of the jobs
they perform
‡ The jobs are ranked, not the job holders
‡ Job analysis should precede job evaluation

 
‡ A system of mutual obligations
‡ Role: a position in a social system defined by functions one
performs in response to the expectations of the µsignificant¶
members of a social system.
‡ Role taking: receiving expectations and responding to them
‡ Role making: use expectations from own role and develop role
behaviour influenced by these expectations
‡ Concept of a job ± prescriptive
K    
‡ Mutuality vs Exclusiveness
‡ Creativity vs Conformity
‡ Confrontation vs Avoidance
‡ Exploration vs Expectation of readymade solutions
  K

v. Self-role distance: conflict between self-concept and
expectations from the role
2. Intra role conflict: conflict between two different roles in a job
3. Role stagnation: need to outgrow earlier long term role
4. Inter role distance: occupying more than one role
ß. Role ambiguity: not clear on expectations
6. Role expectations conflict: conflicting expectations from diff
role senders
7. Role overload: too many expectations in too little time
8. Role erosion: functions like to perform performed by others
9. Resource inadequacy
v . Personal inadequacy
" á

|
 

á
 
| á
‡ A process of forecasting an orgn¶s future demand for and
supply of the right type of people in the right number
‡ It is a sub-system in the total orgn planning system
- Facilitates the realization of the co¶s objectives by providing the right type and
right no of personnel
‡ Specifically, HRP is a process by which an orgn ensures that it
has the right no and kind of people, at the right place, at the
right time, capable of effectively completing and efficiently
completing those tasks that will help the orgn achieve irts
overall objectives
- Translates the orgn¶s objectives and plans into the no of workers needed to
meet those objectives
- Without HRP, estimation of employee needs is merely guesswork



| á
v. Future personnel needs:
- Planning is significant in that it helps determine future personnel needs
- Surplus/deficiency in staff is the result of the absence / or defective planning
- Orgns today are resorting to VRS
- Also there is an absence of succession planning in senior personnel
2. Coping with change:
- HRP enables coping with change in today¶s competitive, tech environment
- Generate changes in job content, skill demands, and no & type of persons
- Shortages in some areas and surplus in others may be observed
3. Creating highly talented personnel:
- Talented individuals, job hop; could create problems
- Planning succession of critical positions in the orgn vital
4. International strategies:
- Ability to fill key jobs with foreign nationals & the re-assignment of employees
from within or across national borders is a major challenge affecting
international business
- Enables effective process in meeting staff needs from foreign countries and
the attended cultural, language & developmental considerations
- Growing competition for foreign executives may lead to expensive and
strategically disruptive turnover among key decision makers
ß. Foundation for HR functions:
- Provides essential info for designing and implementing HR functions, such
as recruitment, selection, personnel movement and training & development
6. Increasing investments in HR:
- Human assets as opposed to physical assets can increase in value
- An employee who gradually develops his/her skills & abilities becomes a
valuable person
- With investment in training & development, orgn needs to use its resources
effectively throughout their careers
- The Re value of a trained, motivated, productive force is difficult to determine
7. Other benefits:
- Upper mgnt has better view of HR dimensions of business decisions
- Personnel costs; mgnt can anticipate imbalances earlier
- More time provided to locate talent
- Better planning of assignments to develop managers
- Major and successful demands on local labour markets can be made
] á
 


‡ HRP essentially involves forecasting personnel needs,
assessing personnel supply and matching demand ± supply
factors through personnel related programmes
‡ The planning process is influences by overall orgn objectives
and the environment of business
‡ The process components:
- Organizational objectives and policies
- HR needs / HR supply forecasts
- HR programming
- HRP implementation
- Control & evaluation programme
- Surplus: restricted hiring; reduced hours; VRS, layoffs, etc.
- Shortage: Recruitment & selection
-
| á 
    
v. Senior Management:
- Define orgn objectives
- Approves plans
- Amends plans through feedback
2. HR planning unit:
- Produces HR plans
- Basic requirement:
- Definition of time span
- Scope and details of plan
- Comprehensive & accurate info
3. Demand forecast:
- Assessment of reqm to meet objectives based on:
- Manager¶s estimate, statistics, work study
| á 
4. Supply forecast:
- Assessment of current resources and probable losses, taking account of
influential internal and external factors
ß. HR plan:
- Matching of demand and supply forecasting
- Identify key areas
- Produce contingency plans
- Assess current utilization of employees
_


  
 
 

v. Managerial judgment:
- Mgrs pool knowledge based on experience and various info; arrive at figure
- In ³bottoms up´ approach line mgrs submit dept proposals
- In ³top down´ approach, top mgrs prepare forecast reviewed by dept mgrs
- Approach subjective but cost effective
2. Ratio ± trend analysis:
- Involves studying past ratios like between no of workers and sale and
extrapolating into the future
3. Work study technique:
- Use Method study to understand how work is carried out; Work
measurement to measure time taken to perform work ± arrive at no of
persons reqd to perform job
- Technique useful for jobs done for the first time
_


  
 
 

4. Delphi technique:
- Solicit estimate of personnel needs from a group of experts
- HRP experts summarize this feedback and give it back to the experts for a
rethink
- The process repeated till the experts opinions begin to agree
ß. Mathematical models:
- Markov models
- Venture analysis
K


 
‡ Determine whether it is possible to procure the reqd no of
personnel and the source of such procurement
‡ Supply forecasting measures the no of people likely to be
available from within & outside the orgn after making allowance
for absenteeism, internal movements & promotions, wastage
‡ The supply analysis covers:
- Existing human resources
- Internal sources of supply
- External sources of supply
‡ Present employees:
- HR audits
- Current inventories
| 
  

‡ A series of action programs initiated:
- Recruitment, selection, placement, Induction
- Training, development, retraining, redeployment
- Retention plan, succession plan
‡ After vacancies known, identify sources & search for suitable
candidates
‡ Train and develop in functional & behavioural areas
‡ New skills to existing staff when tech changes
‡ Retention plans to help reduce avoidable separation of emp
‡ Need to keep good managers regardless of downsizing: takes
years of grooming to get them
  


| á
‡ HRP recognized as an integral part of corporate planning
‡ Backing of top mgnt essential
‡ HRP resp central to coordinate and consolidate between depts &
levels
‡ Personnel records up to date, and readily available
‡ Time horizon long enough to permit remedial action
‡ Planning techniques should be suited to data available and degree of
accuracy reqd
‡ Plans should be prepared by the skill levels rather than aggregates
‡ Data collection, analysis, techniques of planning and the plans
themselves need to be constantly revised and improved in the light of
experience




K



  
‡ Internal:
- Retrenched employees; Retired; Dependents of deceased; Up-gradation
- Transfer; Promotion of existing employees
‡ External:
- Employees in other organization
- Job aspirants with employment exchanges
- Students of educational institutions
- Candidates referrals
- Search firms; contractors
- Head hunters
- Candidate responding to adverts
- Unsolicited applications, walk-ins



  
v. Internal methods:
- Promotions & transfers
- Job postings
- Employee referrals
2. Direct methods:
- Campus recruitment
3. Indirect methods:
- Advertisements in newspapers; TV; radio
4. Third party methods:
- Pvt employment search firms
- Employee exchanges
- Gate hiring & contractors
- Unsolicited applicants / walk-ins
- Internet recruitment
ï

  

  
‡ Overtime
‡ Subcontracting
‡ Temporary employees
‡ Employee leasing
‡ Outsourcing



 


á 
 
K

á


K 

‡ Process of picking individuals who have relevant qualifications
to fill jobs in an orgn
‡ Choose individuals who can most successfully perform the job,
from the pool of qualified candidates
‡ Selection is usually a series of hurdles & tests; each one must
be carefully cleared before the applicant proceeds to the next
‡ Steps:
- Reception: making a favourable impression among the candidates
- Screening interviews: Asking details for suitability; screening biodatas to
remove clutter, reduce time
- Application blank: Brief history sheet of the applicant¶s background; could be
standardized to save time and ensure all data is informed
K 

‡ Steps (contd.)
- Selection tests: A standardized objective measure of a person¶s behaviour,
performance or attitude:
- Intelligence tests: Mental ability tests; learning, taking instructions, etc.
- Aptitude teats: Potential to learn certain skills: programming, Typing, etc.
- Personality tests: Measure basic aspects like motivation, intorversion,
emotional balance, inter-personal behaviour, self-confidence
- Achievement tests: What can do in the current assignment
- Simulation tests: Duplicate many activities employees face in workplace
- Assessment centers: Group & individual exercises to test , simulate the type
of work which the candidate is expected to do:
--In-basket; leaderless GD¶s; business games; presentation; interviews
- Graphology
- Polygraph (lie-detector tests; Integrity tests
K 

‡ Steps (contd.)
- Interviews: Oral examination of candidates for employment
- Interviewer tries to obtain & synthesize information about the abilities of the
interviewee & the requirements of the job
- Gives opportunity to the interviewer to:
- Size up the interviewee¶s agreeableness
- Ask questions that are not covered in the tests
- Obtain as much pertinent info as possible
- Assess subjective aspect of the candidate ± facial expression, nervousness
- Make judgments on the interviewee¶s enthusiasm & intelligence
- Give facts to the candidate regarding the company, policies, programme, etc.
and promote goodwill towards the company
- Medical Examination
- Reference checks
] 
 
‡ The non-directive: Ask questions as they come in the mind
‡ Directive / structured: a predetermined set of questions that are
clearly job related
‡ Situational: Hypothetical incident ± how would the interviee
respond
‡ Behavioural: Focus on actual work incidents
‡ Stress: Find how applicant would respond to aggressive,
embarrassing, rude & insulting questions
‡ Panel interview
K 
 
 
‡ Favour applicants who share own attitudes
‡ Find difficult to establish rapport
‡ Not asking right questions
‡ Resorting to snap judgments
‡ Forgetting interview contents soon after the event
‡ Show leniency to candidate
‡ May have own bias
‡ Halo / Horn effect
‡ Candidate order error
‡ Being influenced more by unfavourable than favourable information
‡ Under pressure to hire candidates at short notice
‡ Being influenced by other factors, not job related
á

 
‡ Posting of employee into a specific job
‡ Line managers take the decision ± match job and qualification
of the candidate
‡ If improperly placed, jobs will suffer


#
 



‡ Introducing the new incumbent into the orgn. / section / dept
‡ Induction serves the foll purposes:
- Remove fear:
- Know more about the jobs, processes, rules, etc.
- Know the people you will be working with
- Terms & conditions of employment
- Create a good impression:
- Feel at home
- Adjust and adapt to the new demands at the job
- Get along with people
- Get off to a good start
- A valuable source of information
- Role, do¶s & don¶t¶s; systems & procedures; policies



 
‡ Transfer: Change in job assignment, may involve promotion /
demotion; or no change in status
‡ Promotion: Upward movement; higher resp pay, status
- Basis could be performance or tenure
- Need a policy on promotion
   



‡ Resignation: Decides to quit voluntarily
‡ Retirement: Compulsory ± superannuation; Voluntary
‡ Death
‡ Layoff: Temp removal from the payroll
‡ - Employer ± employee relationship merely suspended for the period
‡ - To trim extra fat and make orgn lean and mean
‡ Retrenchment: Permanent termination; economic reason
‡ Outplacement: Training & assist get other job
‡ Suspension: Prohibiting emp from attending work; a kind of
punishment; subsistence allowance given
‡ Discharge & termination: Punitive measure for misconduct
# 

$  
m 

‡ How we do things around here

‡ Something holistic, historically determined, socially constructed,
soft and difficult to change
‡ Country Culture (Greet Hofstede):
- Power distance
- Individualism vs Collectivism
- Masculine vs Feminine
- Uncertainty avoidance
- Long term vs short term orientation
m


m 

‡ The moral, social and behavioural norms of an orgn based on

the beliefs, attitudes & priorities of its members
‡ 6 independents dimensions of practices:
- Process oriented vs result oriented
- Job oriented vs employee oriented
- Professional vs parochial
- Open systems vs closed systems
- Tightly controlled vs loosely controlled
- Pragmatic vs normative
‡ The position of the orgn on these dimensions is determined in
part by the business or industry the orgn is in
‡ Managing intl business means handling both corporate and
country culture
|á
 

‡ Creates a conscious corporate culture: ³The HP way´

‡ HP¶s corporate culture is based on:
- Respect for others
- A sense of communities
- Plain hard work
„ 
 



Ò 

‡ Redesigning the role of leader in the new economy: creating
followers through communicating a vision and establishing
open, caring relations with every employee
‡ Creating an open collaborative workplace where everyone¶s
opinion is welcome
‡ Empowering senior executives to run far-flung businesses in an
entrepreneurial fashion
‡ Liberating the work force, making everybody a participant
through improving vertical communication & employee
empowerment
|
%  
K   
ï


³It starts with hiring. We are zealous about hiring. We are looking
for a particular type of person regardless of which job category
it is. We are looking for attitudes that are positive and for people
who can lend themselves to causes.
We want folks who have a good sense of humour and people who
are interested in performing as a team and take joy in team
results instead of individual accomplishments.
If you start with the type of person you want to hire, presumably
you can build a workforce that is prepared for the culture you
desire.
m



 




ë Certain cultural issues during post merger phase:
- Disintegration of organization value system
- Low employee morale
- Benefits of synergy require time
- Rationalization & relocation of people may require time
- Flight of talented personnel
- Different culture
- Rigidity to learn things for blue collared worker
- Sentimental attachment
- Anxiety for pink slip
- Differences in HR style
- Broken faith in mgnt due to veil of secrecy in merger
- Stalemate in managerial positions
- Reduced employee enthusiasm


 

 

‡ Ascertain differences in basic culture and differences
‡ Pre-assess the cost implications to integrate manpower of merging orgns
‡ Plan for VRS for people rendered surplus
‡ Make provisions for increased HR cost for training a re-deployment, relocation,
VRS benefits
‡ Accommodate employees of merging orgn in new environment
‡ Develop an integrated culture with inputs from two orgns
‡ Focus on training and learning process
‡ Develop a new orgn chart and make it transparent
‡ Align the compensation package, if required, even by redesigning
ý




 

‡ These are useful diagnostics for gauging the morae of a
company¶s workforce , testing the impact of new policies and
procedures, monitoring long term trends in the workforce and
determining where interventions are needed
v. Attitudes towards work:
- Job satisfaction
- Role clarity
- Role conflict
- Autonomy
- Participation in decision making
- Job involvement
2. Organizational commitment:
- Job security
- Loyalty
- Trust in management
- Identification
- Alienation
- Helplessness
3. Organizational climate:
- Fairness
- Safety & support
- Communication
- Tolerance of risk
- Continuous learning
|



| 
‡ A systematic approach to proactively deal with issues related to
individuals and teams in orgns and as a movement to develop
orgn capability, to manage change and challenge.
‡ HRD efforts, as reflected in concepts and orgn practices, are
based on certain values:
- Openness
- Confrontation
- Trust
- Authenticity
- Pro-activity
- Autonomy
- Collaboration
]





 


 
  




 


 




  

 

  



 


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K 
v. Appraisal:
- Performance
- Potential
- Performance Coaching / Counseling
2. Career:
- Charting career paths for individual employees
- Succession plans
- Mentoring
3. Training:
- Identifying training needs
- Planning & delivering training
- Evaluating training


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ý
‡ Organizations are never completely static
- Continuous interaction with external forces
- Changing consumer tastes / attitudes; new technology; legislation
‡ An effective orgn needs to develop self-renewing properties:
- A capability to continuously reexamine itself, and taking both reactive and
proactive actions in relation to its environment (internal & external)
‡ Need to reexamine existing structures, systems & procedures
from time to time, even when the orgns are successful and
have no apparent problems necessitating such an examination
‡ Orgns can develop internal mechanisms in this regard:
establish a function of OD and research.
‡ The function can be an independent one or be part of the HRM
ý
‡ Research is the most appropriate mechanism for systematising
collection of information and data, analysing these scientifically,
and learning from them for improvement
‡ According to Udai Pareek:
- OD is a planned effort
- Initiated by process specialists
- To help an orgn develop diagnostic skills; coping capabilities;
linkage strategies in the form of temporary and semipermanent
systems and a culture of mutuality
ý
 

- Planned
- Organization wide
- Managed from the top
- To increase orgn effectiveness & health
- Through planned interventions in the orgn¶s
processes using behavioural science knowledge
ý  
‡ A systematic, integrated and planned effort
‡ Solve problems that adversely affect operational efficiency at all
levels
‡ Based on scientific awareness of human behaviour and orgn
dynamics
‡ An orgn wide effort
‡ Directed towards more participative management
‡ Integration of individual goals with orgn goals
‡ Create an internal environment of openness, trust, mutual
confidence and collaboration
‡ Help orgn members interact more effectively
‡ Enable orgn to cope effectively with external environment
m  ý


‡ An OD expert needs to be invited as the orgn cannot handle the
situation. The expert needs to think and plan
‡ Needs to apply knowledge and skills of applied behavioural
science
‡ An internal change agent has to be appointed to carry on the
process
‡ An emphasis of OD is on planning change on the basis of data;
data are continuously collected about several aspects of the
orgn and its problems
‡ You not only diagnose problems but also develop skills in the
orgn to diagnose the problems as part of regular functioning
ý


‡ The main thrust of OD is on problem solving abilities of the orgn
‡ The orgn is helped to confront and cope with the problems
encountered
‡ OD lays emphasis on building linkages between the individual
goals and orgn goals amongst the individuals who work in the
various roles, and among various groups which function in the
orgn
‡ Problems in orgn can only be resolved through collaborative
efforts; thus such efforts need to be made
‡ You do this, amongst several ways, by setting up temporary
systems, like task forces, and by creating structural changes
which may ensure continuing collaboration in the orgn
ý

 
‡ OD is based on certain values which are important for the
development of orgns as open and proactive systems.
‡ OD makes effort to develop OCTAPACE: 8 diff values:
- Openness
- Confrontation
- Trust
- Authenticity
- Proaction
- Autonomy
- Collaboration
- Experimentation
m 
ý


v. Commitment at the top
2. Strong link pins:
- They are the roles which connect various levels and various
parts of the orgn
- Change can flow through these key roles which can become
the main media of communication
3. Willingness and resources in the dept:
- A dept in the orgn is willing to experiment and has resources
which can be used to stabilize change through OD
- Ensure at least one dept in the orgn stabilizes & continues
with the change
m 
ý


4. Involvement of an external consultant:
- Brings in expertise from elsewhere
- Can take risks and confront organization
ß. Strong internal resources:
- To continue with the work
- To ensure orgn does not revert back to the existing paradigm
- Coordinators need to develop like internal OD facilitators
á 



á






  á


‡ An integrated process that:

- Sets objectives
- Appraises employees
- Translates objectives into individual key result areas (KRA¶s)
- Determines pay, and
- Helps orgn achieve business goals
‡ Involves thinking through various facets of performance,
identifying critical dimensions of perf, planning, reviewing, and
developing and enhancing perf and related competencies
á

‡ An ongoing communication process that involves both the
manager and employee in:
- Identifying and describing essential job functions and relating them to the
mission and goals of the orgn
- Developing realistic and appropriate perf standards
- Giving and receiving feedback about the performance
- Writing and communicating constructive performance appraisals
- Planning education and development opportunities to sustain, improve, or build
on employee work performance
á



ý
 
‡ Need to establish clear performance objectives for the
individual, the dept and for the orgn as a whole
‡ SMART: Specific, Measurable, Achievable, Relevant and
Timed ± provides opportunity to scientifically measure the perf
targets, trace the possible loopholes in setting the targets and
effectively map future strategies, aligning people with the orgn
‡ Need to identify appropriate performance indicators:
- Cost: money spent to manufacture goods or provide service
- Input: The resources employed for the above
- Output: Goods / services provided to customers in terms of task
accomplishment
- Outcome: The actual impact and value of the services delivery
   




‡ An approach could be top-down or bottom-up collaborative
‡ Could benchmark standards with competing and other orgns
‡ Need to get the employees stretch to obtain value.
‡ Some guidelines:
- Perf stds should be related to the employee¶s assigned work and job reqms
- Reporting systems should be adequate to measure and therefore should have
more quantitative data
- Quantifiable measures may not apply to all functions. Describe in clear and
specific terms the characteristics of perf quality that are verifiable and would
meet or exceed expectations
- Accomplishment of orgn objectives to be included such as: cost control,
improved efficiency, productivity, project completion, process redesign,
customer service
m
 





‡ Are the standards realistic?
‡ Are the standards specific?
‡ Are the standards based on measurable data, observation or
verifiable information?
‡ Are the standards consistent with orgn goals?
‡ Are the standards challenging?
‡ Are the standards clear and understandable?
‡ Are the standards dynamic?
á



  K á
K
‡ A set of techniques and procedures for improving
organizational performance.
‡ The main features include:
- Focus on objective setting
- Develops systems for ongoing review of objectives
- Develops personal improvement plans
- PMS aligns with training & development
- Ensures formal appraisal with feedback
- Helps in pay review
- Develops competence based orgn capability
* PMS involves thinking through various facets of performance,
identifying critical dimensions, planning reviewing, developing
and enhancing performance and related competencies
á



ï


áï
‡ PA means analysis, review, or evaluation of performance or
behaviour analysis of an employee
‡ A formal process to evaluate the performance of the
employee in terms of achieving orgn objectives.
‡ Three fundamental processes:
v. Confidential review system
2. Self-assessment and review system
3. 36 degree appraisal system
áï
‡ All appraisals are of judgment and not always fair
‡ Needs consistent approach, clear standards & measures,
bias free ratings
‡ Main characteristics of PA:
v. A systematic process:
- Set work standards
- Assess employee actual perf relative to these standards
- Offer feedback to eliminate deficiencies & improve perf in due course of time
2. Find out how well employee doing on the job; establish plan for improvement
3. Appraisal carried out periodically
4. Not a past oriented but future directed activity
ß. Not limited to ³calling the fouls´. Focus on employee development
V 





‡ Requires performance feedback from all important stakeholders
‡ Effective in reporting performance; also ensures total employee
involvement and employee empowerment
‡ The implementation should be gradual; bosses are not normally
used to being evaluated by subordinates and will resisit its
implementation
‡ Helps average out the biases
‡ Enables feedback from many stakeholders resulting in all round
feedback of the employees performance
‡ Confidentiality on the person making the feedback is essential
to elicit candid feedback
‡ The emperor¶s new clothes
V 

‡ The 36 degree feedback, multisource assessment, taps the
collective wisdom of those who work most closely with the
employee.
‡ The collective intelligence on critical competencies or specific
behaviours and skills gives the employee a clear understanding
of personal strengths and areas ripe for development
‡ Employee view this as credible, fair, accurate & motivating
‡ Single source assessment reinforce employee accountability
and service the single source: the boss
‡ There is perceived bias in its implementation
ï





 
‡ An opportunity to compare overall perf results with objectives &
expectations established in the perf plan.
‡ Activities include:
- Review annual perf result compared with expectations
- Identify accomplishments and areas needing improvement
- Review the results of development activities
- Discuss significant factors affecting job performance
- Assign objective, specific and overall perf ratings
- Summarize the review on a performance & development form
á
 á

‡ The purpose is to:
- Make performance expectations explicit
- Tie individual perf to orgn & dept business plans
- Identify measurement or evaluation criteria for perf
- Identify gaps in knowledge, skills reqd to achieve expectations
- Describe specific development activities
- Foster communication between manager & employee
‡ Review business plans; decide what needs to be done; how
each employee fit the plans
‡ Choose dev activities to enhance capabilities & competence
‡ Develop SMART goals
‡ Agree perf plans & discuss with each employee
á
   





 
‡ Develop objectives for the individual
‡ Schedule perf & dev planning discussions
‡ Assist in determining priorities
‡ Review each employee draft perf plan
‡ Assist in determining dev areas & activities
‡ Maintain real-time file of employee objectives
‡ Monitor methods to ensure progress
‡ Enable process to incorporate changing scenarios
á
     

  
‡ Familiarize with dept goals & objectives
‡ Develop SMART goals with clear perf stds & completion
deadlines
‡ Prepare supporting data for each objective
‡ Decide what resources and coordination will be needed
‡ List questions & potential problems for discussion with manager
‡ Assess current skill level reqms to meet perf plan objectives;
consider competencies needed to be developed
‡ Discuss draft plan with manager
‡ Renegotiate objectives for major changes
ï


 



‡ Control the environment
‡ State the purpose of your discussion
‡ Ask for the employee¶s opinion
‡ Present your assessment
‡ Build on the employee¶s strength
‡ Ask for the employee¶s reaction to your assessment
‡ Set specific goals
‡ Close the discussion





‡ Need to give ongoing perf feedback
- Based on agreed plans
- Both positive & negative
- Could be formal or informal
‡ When to provide coaching:
- When strengths & accomplishments are recognized
- When performance needs improvement
- When growth and development are necessary
- When projects & priorities change
‡ The process should be continuous
K   


‡ Should be descriptive, not evaluative; evaluative ® defensive
‡ Should be specific then general
‡ Should be directed to behaviour that can be addressed
‡ Should be well timed
‡ Should be checked to ensure clear communication
‡ Should be owned by the giver
‡ Should be based on observed behaviour
‡ Should be balanced: positive & negative; limit negatives to be
manageable
m

 


‡ Praising allows you to:
- Acknowledge positive behaviour
- Keep good performance on track
- Reinforce good performance
- Help people feel good about themselves
- Help people feel good about their job performances
- Motivate people to continue doing a good job
‡ Praises which are specific, timely and genuine have the
greatest impact.
- Vague praises could send mixed signals and seem
manipulative
á

 
 &
‡ Learners should be praised when their performance is
approximately right
‡ Seasoned employees when they are exactly right
‡ Do not say ³Yes, but «..´
‡ Do not assign more work when praising
‡ To deliver constructive praises:
- Tell employees what was done right
- Tell how you felt about the behaviour
- Pause to allow praising to be felt
- Encourage employees to do more of the same
- Reaffirm that you value the employee & his/her performance
m

 

 

‡ Need to occasionally point errors and reprimand when perf slips
‡ Need to communicate what expectations has not been met; its
impact and expectations for future perf; for corrective action
‡ When reprimanding, need to:
‡ - Make the facts surrounding the reprimand clear
‡ State what the reprimanded employee must do and why
‡ Reaffirm your belief in the reprimanded employee
 
 



‡ Attacking personally rather than focusing on behaviour
‡ Reprimanding new learner when goal clarification or more
direction is needed
‡ Saving up a list of problems & dumping them together
‡ Basing feedback on inference rather than on observed
behaviour
‡ Reprimanding on something that occurred long ago
‡ Delivering the same reprimand over and over again
‡ Feelings or reactions:
Defensive; Resentful; Inadequate; Angry; Focused on feelings
rather than on correcting behaviour; Frustration; Upset;
Decreased trust & comm; Getting even; Demotivated

 '

×  
 

 
‡ Most center around difficulties in precisely defining the job of a
manager
‡ Identifying the differences in requirement at various levels in the
hierarchy
‡ Some require admin work with heavy load of paperwork; others
require coordination between people and still others negotiating
with external personnel
‡ No one job description deals effectively with complexity of azll
sets of reqm
‡ Managerial jobs difficult to analyze because of the long term
cycle of activities
‡ Also a manager¶s job is seldom repeated in the same way
×  
 

 
‡ Judgment of competence to perform in future mgnt position
usually based on one of five sources of info:
- Evaluation of job success and potential by current supervisors
- Results from traditional paper-and-pencil tests
- Clinical evaluations by psychologists and related professionals
- Background interviews, and
- Observations in job simulations in an assessment center
‡ Each of this approaches have strength that can be utilized in a
coordinated program for the prediction of management potential
‡ There are also weaknesses like in equating perf effectiveness
in a lower job with that of a higher level ± need assumptions
- Such assumptions lead to ³The Peter¶s Principle´ being made effective
ï   m 
ïK
‡ An assessment center is a procedure (not a location) that uses
multiple assessment techniques to evaluate employees for a
variety of manpower purposes and decisions
‡ Most frequently approach applied for individuals being
considered for selection, promotion, placement or special
training and development in management
‡ Assessment centers have their greatest value when the
participant is aspiring to a job significantly different from the
position held
‡ The simulation of job reqm for the new positions provides an
opportunity to evaluate skills that is not available from
observation of performance on the current job
ïK
‡ Individuals usually assessed in a group
‡ Group assessment affords opportunity to observe peer
interactions and aids in efficiency of observation
‡ Staff members of the assesses to assessors (typically 2:v) is
imp to the assessment center process because it allows close
contact and observation of participant and makes multiple
evaluation possible
‡ Assessment techniques employed include: management
games; leaderless group discussions; role-playing exercises;
simulation techniques; interviews & tests; etc.
‡ Task of observing complex social behaviour, integrating the info
and making predictions are difficult.
ïK
‡ Assessors report behavioural observations and dimension
ratings for each exercise and then make independent ratings of
overall dimensions of performance.
‡ The assessors then reach consensus on dimension ratings and
finally make predictions of management success.
‡ Participating in the exercises may be a learning experience for
the participants and may provide personal insights into
managerial competence.
‡ Feedback of results in the form of oral and written reports to
participants and immediate supervisors may clarify
developmental needs
m 

‡ The starting point of the assessment center project is to get a
clear and accurate specification of what the center is measuring
‡ The center primarily measures competency
‡ Need to get the list of competency right or the people will be
looked at against the wrong requirements leading to incessant
problems in the design, development and operation of the
center
‡ Boyatzis: Competency: ³ An underlying characteristic of a
person´ ± it could be a motive, trait, skill, aspect of one¶s self-
image or social role, or a body of knowledge which he or she
uses.
‡ Behavioural dimensions that affect job performances
m 

‡ Behaviour and traits are two sides of the same coin. (e.g. trait
of self-confidence can be said to be behind whether the person
behaves in a self-confident manner)
‡ Aspects like creativity and sensitivity are only summaries of
behaviour ± people behave creatively and so we know they
have creativity.
‡ Defining competency as a behavioural dimension
encompasses traits, motives and dispositions, if it is recognized
that these qualities are only convenient inferences from
people¶s behaviour
K
   
 
 
‡ For need of an assessment center: The primary objective is to
design, within an integrated management development system,
processes for assessing people¶s levels of competence and
developing their competence.
‡ The competences should reflect present realities and the future
rather than what might have been truly historical
‡ Distinguish between competencies that differentiate between
performance levels and threshold competencies, which are
essential to adequate perf but do not give rise to high perf
‡ Important to focus on the level of generality appropriate: e.g.
communication skills include writing and face to face skills
K
   
 
 
‡ Need competencies measurements that can be assessed.
Hypothetical psychological variables are inappropriate; e.g.
self-monitoring ± cannot be understood properly
‡ The no of competency dimensions must be kept within bounds.
Too many and the accuracy of assessment may suffer
‡ The system of competencies and other types of variables
should be easy to understand
‡ The competency dimension title must be backed up with the
behaviours that make up the dimension (e.g. incisiveness =
gets a clear overview of an issue; grasps info accurately,
relates pieces of info, etc.)
‡ Devise orgn specific competencies
] 



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‡ What is to be the focus of the proposed training.
‡ The specific ways in which people should change, develop, or
behave
‡ Predetermined / Emergent aims:
- Who should determine the learning objectives? (the facilitator, learner, both)
- To what extent can learning aims be determined prior to the training
experience?
- What is the possibility of additional aims emerging during the training event?
- To what extent might the facilitators impose, consciously or otherwise, some
aims because of their own values and by setting norms?
‡ To what extent are training aims conceptual (cognitive) or
emotional (usually personal)? Will affect the nature of design
materials needed, and the type of facilitation required.
]

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‡ Are the training objectives remedial or developmental? The
extent should be considered and the implication of the focus
‡ How long is the group learning intended to have an effect
(days, months, years)? What reinforcement will be available to
participants to aid in the transition and refreezing processes?
‡ The extent to which the activity will be a joint learning
experiment, in which the facilitator has a special responsibility
‡ The extent to which the facilitator allows participants to
experience the activity without heavily processing it
‡ ³What is expected to change because of this module?´
‡ Three broad categories: Cognitive; Psychomotor; Affective
]

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‡ One classification: Listeners; Directors; Interpreters; Coaches
‡ Listeners:
- Tend to create affective learning environments in which learners encouraged to
express their personal needs openly
- The training focus is on the here and now, and the listeners characteristically
are highly aware of individual group members
- Listeners tend to read nonverbal behaviour well, show a great deal of empathy,
and assure that all group members are heard
- Listeners are comfortable with all types of expression, easily expose their own
emotions and expect learners to be self-directed and autonomous
- In training situations, traners with the listening style appear relaxed and
unhurried and ³go with the flow´, not appearing to worry about the training
]

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‡ Directors:
- Create learning environment in which participation of the learner is limited.
- Training focus is on the how and why.
- The directors take charge and become final judge of what is learned
- The training process is well planned; delivered and evaluated
‡ Interpreters:
- Tend to create learning envms in which learners are reqd to memorize and
master terms, rules and concepts
- The training focus in on the there and then; interpreters provide info based on
objective data
- Interpreters tend to integrate theory and events by making connections
between past and present events
- Use case study, theories & readings to present well-constructed interpretation
and encourage independent thought.
- Separate self from trainees; share ideas, not feelings; intellectual content
]

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‡ Coaches:
- Tend to create behavioural learning environments in which trainees are
encouraged to participate actively, learn and evaluate their own progress
- The training focus is on the what and how
- Coaches characteristically encourage trainees to actively experiment with
practical application.
- Coaches tend to draw on the strengths of the group and utilize trainees as
resources
- They are clearly in charge and make use of activities, problems, and projects
based on real life
- Trainers who prefer a coaching style help trainees to verbalize what they
already know and act as facilitators to make the learning experience more
comfortable and meaningful.
]  


 
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‡ Exec compensation consists of three key components:
- Cash compensation: salary and onus
- Perquisites and supplementary benefits: insurance, club membership, etc
- Long-term incentives: stock options, etc
‡ Firm performance is another determinant of executive
compensation
‡ Compensation is a methodical approach to assigning a
monetary value to employees in return for work performed
‡ Managers can use compensation as tool to enforce
performance of employees at workplace to sustain competitive
advantage
‡ Remuneration refers to monetary rewards
¬


‡ Employee compensation consists of value and not money
‡ A good compensation program aligns with orgn and people
‡ It makes a tradeoff between the expectations of employees and
orgn
‡ HR outcomes result from a good compensation plan
‡ Orgns globally try to adopt innovative compensation plans to
remain competitive in the market
‡ Employees do not want only expensive compensation plans,
They also value aspects other than money
‡ Aligning compensation plans with business results is not the
right option; need to align with work performance
m 


 
‡ Compensation is the price for a factor of production ± it serves
to allocate scarce human resources to productive use
‡ Economic concept: comp is governed by the same logic as any
other purchase by the firm
‡ Psychological: represents the psychological contract between
the individual & the orgn
‡ Sociological: Pay is a status symbol within orgns & society
‡ Political: Involves use of power & influence for pay
‡ Equity concept: Distributive justice; returns to be proportionate
with contributions
m 


‡ Necessitates a series of decisions. End result is a pay rate for
each employee in the orgn
‡ Three core decisions: pay level; pay structure; pay system
‡ For supporting these, three other decisions: pay form; pay
treatment for special groups; pay administration
‡ All these decisions influenced by a no of environmental and
organizational variables: economic, socio/cultural, legal envms
and orgn¶s structure and workforce
m

‡ Pay levels:
- Refers to the average pay for jobs, depts or the enterprise
- An average pay should be set to secure and keep a productive force
- Major consideration include: public policy; pay for comparable work in the
community or industry (the going rate), and; company response to economic,
political and social issues
- These considerations may be weighed unitarily or together with the unions
representing the employees
- Some of these decisions end with personal interactions (salaries), some are
provided on a group basis (e.g. medical insurance)
‡ Pay structure:
- Focuses on the relationships between jobs within the orgns
- Involve arraying jobs in a hierarchy and setting pay for these jobs relative to
their status in the hierarchy; involve internal & external standards
m

‡ Pay system:
- Determining pay of individual employees on the same job
- How to differentiate among employees
- Whether to pay for time or for output
‡ Pay form: composition of ; money, benefits
‡ Pay treatment of special groups: sales people; professionals
‡ Pay achievement: seek answers to questions of efficiency,
effectiveness, and legality



 
 

‡ Involves two main issues: controlling costs and leveraging pay
‡ Establish an agile compensation & benefits system that tracks
costs, helps to ensure pay equity, is understood by employees,
and keeps in touch with employee desires
‡ Another imp area is ensuring equity: managing employee
perception. Some steps to do this:
v. Categorize employees by job:
- Avoid tendency to define jobs very narrowly
- Fewer jobs better than more
- More jobs make system cumbersome and difficult to administer
- Consider the speed with which jobs change; have an agile, flexible system
- Create few job levels for each job



 
 

2. Compare pay to the labour market:
- Benchmark against competitors, industry
- Provide basis with which to establish financial values for jobs
- Tell how well we relate to the labour market
- Provide info for establishing salary ranges
3. Manage internal equity:
- High potential for morale problems and turnover
- Pay people within a salary range and pay for performance
- Need to act properly in case equity needs to be breached
4 Link with job performance:
- Better performers should get the better salary
ß. Communicate how pay works



 
 
‡ Employee compensation that varies with the orgn¶s business
performance
‡ Basic salary is paid regardless of how well the orgn is
performing
‡ System works well when the orgn¶s business perf is equal to or
better that the industry average
‡ To be optimally successful, the employee must understand how
their individual performance can impact their variable paythe
most effective systems have established team or business unit
perf targets
‡ Formal bonus; incentive plans: Award depends on individual,
group and orgn wide perf



 
 
‡ Profit sharing plans: funded by the orgns profits based on a
specified formula; allocated usually as % of basic salary
‡ Lump salary merit awards: financial recognition for an
individual¶s job in lieu of merit-based salary increases; award
must be reearned every year
‡ Spot bonuses: Paid immediately after a significant job
performance event
‡ Gain sharing plan: share productivity gains in accordance to
predetermined formula
‡ Alternative plan: Skill based; pay-for-knowledge
‡ Stock plans: ESOP; offered shares exercised after a specified
time; good when the value increases