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8.Explain Human Resource management (HRM)?

2.1 Introduction to HRM HRM is a broad concept; Personnel management and human resource development are a part of HRM. HRM is management function that helps managers recruit, select, train and develops members for an organization. HRM involves all management decisions and practices that directly affect or influence the people or human resources who work for the organization. Human Capital or managing talent: the term human capital describes the economic value of employees knowledge, skills, power and capabilities. The Idea that organizations compete through people highlights the fact that success increasingly depends on an organizations ability to manage talent, or Human capital. Human Capital Management refers to the task of measuring the cost and effect relationship of various HR programs and policies on the bottom line of the organization. It seeks to obtain additional productivity. Industrial Relation is concerned with systems, rules and procedure used by unions and employers to determine the reward for effort and other conditions of employment, to protect the interest of the employed and their employers, and to regulate the ways in which employers treat their employees. It covers the following areas Collective bargaining Role of management, unions and government Machinery for resolution of industrial dispute Individual grievance and disciplinary policy and practice Labour legislation Industrial relations training Personnel management is a responsibility of all those who manage people as well as being a description of the work of those who are employed as specialists. It is that part of management which is concerned with people at work and with their relationships within an enterprise. It applies not only to industry and commerce but to all fields of employment. 2.2 The functions of HRM can be broadly classified into two categories, viz. Managerial Functions and Operative Functions 1. Managerial Functions involve Planning: it is a pre-determined course of action. Planning is determination of personal programs and changes in advance that will contribute to the organizational goals. In other words, it involves planning of human resources,

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requirements, recruitment, selection, training etc. It also involves forecasting of personnel needs, changing values, attitudes and behavior of employees and their impact on organization. Organizing: An organization is a means to an end. It is essential to carry out the determined course of action. According to J. C Massie, an organization is a structure and a process by which co-operative group of human beings allocated its task among its members, identifies relationships and integrates its activities towards common objective. Directing: It is the basic function of personnel management which includes motivating, commanding, leading and activating people. Direction is an important managerial function in building sound industrial and human relationships besides securing employees contribution. Controlling: It is the function of checking, verifying and comparing of the actual with the plans, Identification of deviations if any and correcting of identified deviations. 2. Operative functions: Operative Functions of Personnel management are related to specific activities of personnel management, viz., employment, development, compensation and relations, which interact with managerial functions. 1. Employment: It is concerned with securing and employing the people possessing required kind and level of human resources necessary to achieve the organizational objectives. It covers the functions such as the Job analysis, Human resource planning, recruitment, selection, placement, induction and orientation. a. Job analysis: it is the process of studying and collecting the information related to operations and responsibilities of a specific job, which includes - Collection of data, information, facts and ideas relating to various aspects of jobs including men, machines and materials. - Preparation of job description, job specification, job requirements and employee specification which will help in identifying the nature, levels and quantum of human resources. - Providing the guides, plans and basis for job design and for all operative functions of HRM. b. Human resource planning: it is a process for determination and assuring that the organization will have an adequate number of qualified persons, available at proper times, performing jobs which would meet the needs of the organization and which would provide satisfaction for the individuals involved. It involves - Estimation of present and future requirements and supply of human resources basing on objectives and long range plans of the organization. - Calculation of net human resources requirements based on present inventory of human resources.

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Taking steps to mould, change, and develop the strength of existing employees in the organization so as to meet the future human resource requirements. Preparation of action programmes to get the rest of human resources from outside
the organization and to develop the human resources of existing employees. Recruitment: It is the process of searching for prospective employees and stimulating them to apply for jobs in an organization. Selection: It is the process of ascertaining the qualifications, experience, skill, knowledge etc. of an applicant with a view to appraising his/her suitability to a job appraising. Placement: It is the process of assigning the selected candidate with the most suitable job in terms of job requirements. It is matching of employee specifications with job requirements. This function includes: a) Counseling the functional managers regarding placement. b) Conducting follow-up study, appraising employee performance in order to determine employee adjustment with the job. c) Correcting misplacements if any. Induction and Orientation: they are the techniques by which a new employee is rehabilitated in the changed surrounding and introduced to the practices, policies, purposes and people of the organization. It involves, a) Acquaint the employee with the company philosophy, objectives, policies, career planning and development, opportunities, product, market share, social and community standing, company history, culture etc. b) Introduce the employee to the people with whom he has to work such as peers, supervisors and subordinates. c) Mould the employee attitude by orienting him to the new working and social environment. Human Resource Development: it is the process of improving, moulding and changing the skills, knowledge, creative ability, aptitude, attitude, values, commitment etc., based on present and future job and organizational requirements. This function includes: i. Performance appraisal: it is the systematic evaluation of individuals with respect to their performance on the job and their potential for development. It includes, Developing policies, procedures and techniques. Helping functional managers Reviewing of reports and consolidation of reports. Evaluating the effectiveness of various programmes. ii. Training: It is the process of imparting the employees the technical and operating skills and knowledge.

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1. Internal Mobility: It includes vertical and horizontal movement of an employee within an organization. It includes internal and external mobility. 2. Transfer: It is the process of placing employees in the same level of jobs where they can be utilized more effectively in consistence with their potentialities and needs of the employees and the organization. 3. Demotion: it deals with downward reassignment to an employee in the organization. Demotion moves an individual into a lower-level job that can provide developmental opportunities. Although such a move is ordinarily considered unfavorable, some individuals actually may request it in order to return to their technical roots. It is not uncommon for organizations to appoint temporary leaders with the provision that they will eventually step down to resume their former position. iii. Organizational Development: It is a planned process designed to improve organizational effectiveness and health through modifications in individual and group behavior, culture and systems of the organization using knowledge and technology of applied behavioral science. Compensation: It is the process of providing adequate, equitable and fair remuneration to the employees. It includes job evaluation, wage and salary administration, incentives, bonus, fringe benefits, social security measures etc. Job evaluation: it is the process of determining relative worth of jobs: a. Select suitable job evaluation technique b. Classify jobs into various categories. c. Determining relative value of jobs in various categories. Wage and salary administration: this is the process of developing and operating a suitable wage and salary programme. It covers: a) Conducting and wage and salary survey b) Determining wage and salary rates based on various factors c) Administering wage and salary programmes d) Evaluating its effectiveness Incentives: It is the process of formulating, administering and reviewing the schemes of financial incentives inidtjvhfg addition to regular payment of wages and salary. It includes: a. Formulating incentive payment schemes. b. Helping functional managers on the operation. c. Review them periodically to evaluate effectiveness. Bonus: A bonus is an incentive payment that is given to an employee beyond ones normal base wage. Spot Bonus: An Unplanned bonus given to Employee effort unrelated to an established performance measure.

It includes payment of statutory bonus according to the Payment of Bonus Act, 1965 and its latest amendments. Fringe Benefits: These are the various benefits at the fringe of the wage. Management provides these benefits to motivate the employees and to meet their lifes contingencies. These benefits include: a) Disablement benefits b) Housing facilities c) Educational facilities to employees and children d) Canteen facilities e) Recreational facilities f) Conveyance facilities g) Credit facilities h) Legal clinic i) Medical, maternity and welfare facilities j) Company stores Social Security measures: managements provide social security to their employees in addition to the fringe benefits. These measures include: a) Workmens compensation to those workers (or their dependents) who involve in accidents. b) Maternity benefits to women employees. c) Disablement benefits/allowance. d) Sickness benefits and medical benefits. e) Dependent benefits. f) Retirement benefits like provident fund, pension, gratuity etc. Human relations: It is the process of interaction among human beings. Human relations is an area of management in integrating people into work situation in a way that motivates them to work together productively, co-operatively and with economic, psychological and social satisfaction. It includes: a) Understanding and applying the models of perception, personality, learning, intra and inter personal relations, intra and inter group relations. b) Motivating the employees c) Boosting employee morale d) Developing communication skills e) Developing the leadership skills f) Redressing employee grievances properly and in time by means of a well formulated grievance procedure. g) Handling disciplinary cases by means of an established disciplinary procedure.

h) Counseling the employees in solving their personal, family and work problems and releasing their stress, strain and tensions. i) Improving quality of work life of employees through participation and other means. Effectiveness of Human Resources Management: Effectiveness of various Personnel programmes and practices can be measured or evaluated by means of organizational health and human resource accounting. Organizational Health: Organizational health may be studied through the result of employees contribution to the organization and the employee job satisfaction. Low rate of absenteeism and labour turnover and high rate of employee commitment indicate employee satisfaction about the job and the organization. Human Resource Accounting: It is a measurement of the cost and value of human resource to the organization. Human resource management is said to be effective if the value and contribution of human resources to the organization is more than the cost of human resource. Human Resource Audit: Human resource audit refers to an examination and evaluation of policies, procedures and practices to determine the effectiveness of HRM. Personnel audit measures the effectiveness of personnel programmes and practices, and determines what should or should not be done in future. Human Resource Research: it is the process of evaluating the effectiveness of human resources policies and practices and developing more appropriate ones. It includes: a) Conducting morale, attitude, job satisfaction and behavioral surveys. b) Collecting of data and information regarding wages, cost-benefit analysis of training, benefits, productivity, absenteeism, employee turnover, strikes, accidents, operations, working hours, shifts etc. c) Tabulating, computing and analyzing of the data and information d) Report writing and submission to the line manager. e) Finding out the defects and short comings in the existing policies, practices etc. f) Developing more appropriate policies, procedures, programmes of personnel. g) Mission, Objectives, Strategy and Tactics (MOST) and HRM Mission: The basic purpose of the organization as well as its scope of operation. Mission of Merck Company To provide society with superior products and services by developing innovations and solutions that improve the quality of life and satisfy customer needs, and to provide employees with meaningful work and advancement opportunities, and investors with a superior rate of return.

Mission statement helps a corporation to link its activities to the needs of society and legitimize its existence. Objectives: Objectives are the open ended attributes denoting a future state or outcome that a corporation strives for. Strategy: it is fairly broad statement of intent which shows the types of action required to achieve the objectives. Tactics: tactics are action plans through which strategies are implemented. Standard hour Plan: An incentive plan that sets rates based on the completion of a job in a predetermined standard time. Relocation services: Services provided to an employee who is transferred to a new location, which might include help in moving, selling a house, orienting to a new culture, and/or learning a new language. Outplacement services: services provided by organizations to help terminated employees find a new job. Corporate Social Responsibility The responsibility of the firm to act in the best interests of the people and communities affected by its activities. Companies are discovering that being socially responsible helps the bottom line. Moreover, workers applying for jobs are saying corporate responsibility is now more important to their job selection. One of HRs leadership roles is to spearhead the development and implementation of corporate citizenship throughout the organization. Knowledge worker The workers whose responsibility extends beyond the physical execution of work to include planning, decision making, and problem solving. HRIS human Resource Information System A computerized system that provides current and accurate data for purposes of control and decision making. HRIS is a potent weapon for lowering administrative costs, increasing productivity, speeding up response times, and improving decision making and customer service. The most obvious impact has been operational- that is, automating routine activities, alleviating administrative burdens, reducing costs, and improving productivity internal to HR function itself. Reactive change: Change that occurs after external forces have already affected performance. Proactive change: change initiated to take advantage of targeted opportunities, particularly in fast changing industries in which followers are not successful. Explain about Total Quality management

It is a set of principles and practices whose core ideas include understanding the customer needs, doing things right the first time and striving for continuous improvement. Six Sigma: a process used to translate customer needs into a set of optimal tasks that are performed in concert with one another. Six sigma is a statistical method of translating a customers needs into separate tasks and defining the best way to perform each task in concert with the others. Reengineering: Fundamental Rethinking and Radical Redesign of Business processes to achieve dramatic improvements in cost, quality, service and speed. Reengineering often requires that managers start over from scratch in rethinking how work should be done, how technology and people should interact, and how entire organizations should be structured. Downsizing: planned elimination of jobs. But downsizing is no longer being regarded as a short term fix when times are tough. Its now become a tool continually used by companies to adjust to changes in technology, globalization, and the firms business direction. Outsourcing: Contracting outside the organization to have work done that could be done by internal employees. Off-shoring: the business practice of sending jobs to other countries. Off-shoring, also referred to as global sourcing, is the controversial practice of moving jobs overseas. Nonetheless, almost half of 500 senior finance and HR leaders surveyed said their firms are either off shoring or are considering off shoring in the next three years, according to a study by Hewitt Associates. Employee leasing: the process of dismissing employees who are then hired by a leasing company (which handles all HR-related activities) and contracting with that company to lease back the employee. Professional Employer Organizations (PEO) typically a larger company takes over the management of a smaller companys HR tasks and becomes a co-employer to its employees. The PEO performs all the HR duties of an employer hiring, payroll, and performance appraisal. Managing Diversity: managing diversity means being acutely aware of characteristics common to employees, while also managing these employees as individuals. It means not just tolerating or accommodating all sorts of differences but supporting, nurturing, and utilizing these differences to the organizations advantage. Strategic Vision A statement about where the company is going and what it can become in the future; clarifies the long term direction of the company and its strategic intent. Core values

The strong and enduring beliefs and principles that the company uses as a foundation for its decisions. Strategic Planning Procedures for making decisions about the organizations long term goals and strategies. Human resource planning The process of anticipating and providing for the movement of people into, within, and out of an organization. Strategic Human resources Management (SHRM) The pattern of Human Resources deployments and activities that enable an organization to achieve its strategic goals. Environmental scanning: it is the systematic monitoring of the major external forces influencing the organization. Major factors are: a) Economic factors b) Industry and competitive trends c) Technological trends d) Government and legislative issues e) Social concerns f) Demographic and labour market trends Cultural Audits: Audits of the culture and quality of work life in an organization. In an organization, employee oriented cultures are critical to success, they often conduct cultural audits to examine the attitudes and beliefs of the workforce as well as the activities they engage in. This analysis focuses on whether the critical values are embraced and demonstrated by the employees throughout the organization. Cultural audits essentially involve discussions among top level managers of how the organizations culture reveals itself to employees and how it can be influenced or improved. Retrenchment: it is the permanent termination of an employee due to economic reason. It should not be on the grounds of illness, retirement, winding up of business etc. The employer has to give three months notice before retrenching the worker and get prior approval from the government. Layoff: a layoff is a temporary removal of an employee due to reasons beyond the control of the employer ex: global competition, reduction in product demand, change in technology that reduce the need of workers, and mergers and acquisitions are the primary factors behind all layoffs. According to Industrial disputes Act 1947, the employee gets only 50% of normally eligible total basic wages plus dearness allowance during the period of lay off. Flexible Work Schedule

Job Sharing The arrangement whereby two part-time employees perform a job that otherwise would be held by one full-time employee. Job sharers may work three days a week, creating an overlap day for extended faceto-face conferencing. Telecommuting The use of personal computers, networks, and other communications technology such as fax machines to do work in the home that is traditionally done in the workplace. Advantages of Telecommuting a) Increased flexibility for employees b) Ability to attract workers who might not otherwise be available c) Less burden on working parents d) Less time and money wasted on physical commuting e) Increased productivity f) Reduced absenteeism Temping: The notion of a clearly defined employer-employee relationship becomes difficult to uphold in triangular relationships like in the case of temporary agency work where the agencies employees are working at the site of the client company. People associated with temping agencies at times get long breaks. Earlier people found these long breaks and uncertainty to be a major disadvantage. Today, surprisingly many find these breaks attractive and useful and prefer to be part of temping agencies. Reasons: more time with family and children. Opportunity to travel and be with spouse especially when they are posted outside India. Spirituality has become a major part of training sessions in organizations. Self management and meditation seem to be working wonders on stressed out employees.

2.2 Recruitment
Edwin B. Flippo defined recruitment as the process of searching for prospective

employees and stimulating them to apply for jobs in the organization.


It deals with: a) Identification of existing sources of applicants and developing them. b) Creation/identification of new sources of applicants. c) Stimulating the candidates to apply for jobs in the organization. d) Striking a balance between internal and external sources. Objectives of Recruitment

(i)

To attract people with multi-dimensional skills and experiences that suits the present and future organizational strategies. (ii) To induct outsiders with a new perspective to lead the company. (iii) To develop an organizational culture that attracts competent people. (iv) To devise methodologies for assessing psychological traits. (v) To search for talent globally and not just with the company. (vi) To anticipate and find people for positions that does not yet exist yet. Internal Recruiting
Job Posting

Organizations can use skills inventories to identify internal applicants for job Vacancies, because it is hard to identify all current employees who might be interested in the opening, firms often use job posting and bidding. In the past, job posting was little more than the use of bulletin boards and company publications. Today, postings are computerized and easily accessible to employees via the companys intranet Software allows employees to match an available job with their skills and experience. External Recruiting Walk-ins provide an important external source of applicants. As labor shortages increase, however, organizations must become more proactive in their recruiting efforts a) External recruiting can be done through: b) Media advertising c) E-recruiting d) Employment agencies e) Executive search firms f) Special-events recruiting g) Internships Media Advertisements Media include: a) Newspapers b) Trade and professional publications c) Billboards d) Subway and bus cards e) Radio f) Telephone g) Television Recruitment strategies (i) In sourcing: companies recruit their own candidates, employ them, train and develop them and utilize them.

(ii)

Outsourcing: External organizations whose core business is to provide human resources, is called outsourcing. Sources of Recruitment

Traditional Sources
Internal Present Permanent and Temporary Employees Retrenched /Retired Employees External Campus Recruitment Private employment agencies

Modern Sources
Internal Employee Referrals External Walk-in Consult-in Head Hunting Body Shopping

Dependents of Public Employment Mergers and deceased/disabled/retired exchanges Acquisitions employees. Data banks, casual Tele Recruiting applicants, Professional Outsourcing associations, trade unions etc. Modern External Sources of Recruitment 1) Walk-in The companies advertise candidates to attend interview directly without prior application on a specified date, time and at a specified place. The suitable candidates from among the interviewees will be selected for appointment after screening the candidates through tests and interviews. Walk-ins are basically done for time saving and fast appointment of employees. 2) Consult-in The busy and dynamic companies encourage the potential job seekers to approach them personally and consult those regarding jobs. The companies select the suitable candidates from among such candidates through the selection process. 3) Head hunting The companies request the professional organizations to search for the best candidates particularly for the senior executive positions. The professional organizations search for the most suitable candidates and advise the company regarding the filling up of positions. Head hunters are also called Search consultants. 4) Body Shopping Professional organisations and the hi-tech training institutes develop the pool of human resources for the possible employment. The prospective employers contact these organizations to recruit the candidates. Consulting organizations also contact the prospective employers to supply suitable candidates to place them in the right employment. The professional training institutes are called body shoppers and these activities are known as body shopping.

5) Mergers and Acquisitions Business alliances like acquisitions, mergers, and the take overs help in getting human resources. In addition, the companies do also have alliances in sharing their human resources on ad-hoc basis. 6) E- Recruitment Using internet as a source of recruitment is common in modern days. Organizations advertise the job vacancies through the World Wide Web (www). The job seekers send their applications and resume through e-mail using internet. Many advantages are there for e-recruitment, such as low cost per candidate, reduction in time, increase in selection ratio, HR personals can concentrate on strategic issues, and increased efficiency and effectiveness of recruitment.

Selection
It is the process of ascertaining the qualifications, experience, skill, knowledge etc. of an applicant with a view to appraising his/her suitability to a job appraising. This function includes: a) Framing and developing applications b) Creating and developing valid and reliable testing techniques. c) Formulating interviewing techniques d) Checking of references e) Setting up medical examination policy and procedure. f) Line managers decision. g) Sending letters of appointment and rejection. h) Employing the selected candidates who report for duty. Effectiveness of Selection Procedure The objective of the selection decision is to choose the individual who can most successfully perform the job from the pool of qualified candidates. The company to ascertain whether the candidates specifications are matched with the job specifications. The following essentials are noted:a) Job requirements are met like specification and description. b) Employee specifications (physical, mental, social, behavioural, etc.) c) Suitable candidates are attracted. d) Authority of selection based on the job analysis and work load. e) Availability of job descriptions and job specifications beforehand. f) Availability of sufficient number of applicants. Steps in Scientific Selection Process i. Job analysis include job description, job specification and employees specifications. ii. Human Resource plan the required number of and kind of employees for a future date. This is the basis for the recruitment function.

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Recruitment the process of searching for prospective employees and stimulating them to apply for jobs in an organization. Development of Basis for selection The company develops or borrows the appropriate bases/techniques for screening the candidates in order to select the appropriate candidates for the jobs. Application Form or Application Blank A device used to screen the candidates at the preliminary level. Many companies formulate their own style of application blank depending upon the requirements of information based on the size of the company, nature of business, type and level of job etc. These include a) Personal background information b) educational attainments c) work experiences d) salary expectations e) references etc. Written Examination on the basis of application blank, written examination is conducted to check the candidates arithmetical ability, logical reasoning, and knowledge in various disciplines, general knowledge and English language skills. Preliminary Interview this is to solicit necessary information from the prospective candidates to assess the candidates suitability to the job. The information given by the candidate may be related to the job specification and the job description. Preliminary interviews are short and also known as stand up interview or sizing up interview, because it is used as a measure to eliminate the wrong candidates. Business games These are used for selecting management trainees, executive trainees, and managerial personnel at junior, middle and top management positions. Business games are to find out the candidates ability in decision making, problem solving, identifying potentials, human relation skills etc. Group discussion GD is a method where groups of successful candidates are brought around a conference table and are asked to discuss either a case study or a subject matter. The candidates are required to analyze, discuss and find alternative solutions and select a sound solution. In group discussion, Candidates analytical ability, leadership skills, interpersonal relationship, communication skills, values and attitude are identified. Test Different types of tests are conducted by organizations to test the candidates suitability on the job. These include psychological test to know the behaviour pattern, aptitude tests to know the mental and physical aptitude such as mechanical, clerical, manipulative capacity etc. Intelligent Quotient (IQ) = , Emotional Quotient (EQ) = , skill tests to know the artistic ability, mechanical aptitude tests to know the mechanical

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ability, psychomotor tests to know the motor skills, clerical aptitude tests to know computation and comprehension abilities, achievement tests to test the job knowledge and work experiences, situational tests to test the ability of candidate to face the situation, interest tests to know the likes and dislikes of the type of jobs, officers, organizations etc. are all conducted by various institutions based on the strategies adopted for selection. Personality tests are conducted to know the candidates value system, his emotional reactions, maturity and characteristic mood. Multidimensional testing The need for multi-skills is being felt by most of the companies consequent upon globalization, competitiveness, and the consequent customer centered strategies. Final Interview Different types of interviews are conducted like informal, formal, planned, patterned, non-directive, depth, stress interview and panel interview. Informal interview can be conducted at any place by any person to secure the basic information which is non-job related. Unstructured interviews are with freedom given to the candidates express his background, expectations, interest etc. Structured interview is a formal interview where all the formalities and procedures are met like fixing the value, time, opening and closing the interview and informing the candidate about the job characteristics etc. Formal interview is conducted as a panel interview where panels of experts interview each candidate and judges his/her performance individually and prepares scores. The questions for the interview is preplanned and structured, and experts are allotted different areas and questions to be asked. In Depth interview candidate would be examined extensively in core areas of job skills and knowledge. It is usually conducted for specialized jobs. Decision Making Interview After the candidates are examined by the experts in the core areas of the job, the head of the department/section head interviews the candidate once again, mostly through informal discussion. Interest of the candidate in the job, reaction/adaptability to working conditions, career planning, promotional opportunities, work adjustment, allotment etc. and the salary, allowances, benefits etc. are also discussed and finalized.

Training and Development


Training improves changes, and moulds, the employees skills, knowledge, behaviour and aptitude and attitude towards the requirements of the job and the organization. Thus training bridges the differences between job requirements and employees present specifications. It includes: a) Identification of training needs of the individuals and the company. b) Developing suitable training programmes.

Helping and advising line management in the conduct of training programmes. d) Imparting of requisite job skills and knowledge to employees. e) Evaluating the effectiveness of training programmes. Management Development: It is the process of designing and conducting suitable executive development programmes so as to develop the managerial and human relations skill of employees. It includes: a) Identification of the areas in which management development is needed. b) Conducting development programmes. c) Motivating the executives. d) Designing special development programme for promotion e) Using the services of specialists, and/or utilization of the institutional executive development programmes. f) Evaluating the effectiveness of executive development programmes. Difference between Training and Development Area Training Development Content Technical skills and Managerial and behavioural skills and knowledge knowledge Purpose Specific job related Conceptual and general knowledge Duration Short-term Long term For whom Mostly technical and nonMostly for managerial personnel. managerial personnel Benefits of training 1. Improved productivity and profitability 2. Improved job knowledge and skills 3. Improves morale of the workforce 4. Employees identify the organizational goals 5. Helps to create a better corporate image 6. Improves relationship between boss and subordinate 7. Helps to prepare the guidelines for work 8. Aids in understanding the organizational policies 9. Helps in effective decision making and problem solving 10. Provides information for future requirements 11. Aids in developing leadership skills, motivation, loyalty, and better attitudes 12. Improves labour management relations 13. Reduces outside consultation costs by utilizing the internal consulting 14. Aids in improving organizational communication. Need for Training

c)

1. To match the employee specifications with the job requirements and organizational needs 2. Organizational viability and the transformation process. 3. Technological advances 4. Organizational complexity 5. Human Relations 6. Change in the job assignment. Training Objectives i. To prepare the employee to meet the present and changing requirements of the job and organization. ii. To prevent obsolescence. iii. To impart knowledge and skills to the new entrants. iv. To prepare employees for higher level tasks. v. To assist employees to function more effectively. vi. To build up second line of competent officers. vii. To ensure smooth and efficient working of a department. viii. To ensure economical output of required quality. ix. To improve individual and collective morale, a sense of responsibility, cooperative attitudes and good relationships. Career planning and development: it is the planning of ones career and implementation of career plans by means of education, training, job search and acquisition of work experiences. It includes internal and external mobility. Assessment of Training Needs Training needs are identified on the basis of organizational analysis, job analysis and manpower analysis. Training programmes, training methods and course content are to be planned on the basis of training needs. Training needs are those aspects necessary to perform the job in an organization in which employee is lacking attitude/aptitude, knowledge and skill. Training Pitfalls a) Attempting to teach too quickly b) Trying to teach too much c) Viewing all trainees as the same d) Giving very little time to practice e) Offering very little to the trainee in the form of encouragement, praise or reward Learning Principles: The Philosophy of Training Training efforts are invariably based on certain learning oriented guidelines:

a) Modeling: It is simply copying someone else's behaviour. (like showing the videotapes of desired behaviour while at work) b) Motivation: For learning to happen, it is important to motivate the trainee first. c) Reinforcement: If behaviour is rewarded, it probably will be repeated. Positive reinforcement consists of rewarding desired behaviours. d) Feedback: Feedback helps an employee find where he stands. People learn best if reinforcement is given as soon as possible. e) Spaced practice: Learning takes place easily if the practice sessions are spread over a period of time. f) Whole learning: Employees learn better if the job information is given as an entire logical process. g) Active practice: Learning is enhanced when trainees are provided ample opportunities to repeat the task. h) Relevance: training should be as real as possible so that trainees can successfully transfer the new knowledge to their jobs i) Environment: employees learn faster in comfortable environments Areas of Training j) Knowledge k) Technical skills l) Social skills m) Techniques Types of training a) Skills training: here certain basic skills like reading, writing, computing, speaking, listening, problem solving etc are taught. b) Refresher training: here the focus is on short term courses that would help employees learn about latest developments in their respective fields. c) Cross functional training: this helps employees perform operations in areas other than their assigned job. d) Team training: this is concerned with how team members should communicate with each other, how they should cooperate to get ahead, how they should handle conflicting situations, how to find their way using collective wisdom etc. e) Creativity training: this helps employees to think unconventionally, break the rules, take risks, go out of the box and develop unexpected solutions. f) Diversity training: it aims to create better cross cultural sensitivity with the aim of fostering more harmonious and fruitful working relationships among a firm's employees.

g) Literacy training: this is generally offered to those employees with weak reading, writing or arithmetic skills.
Objectives of Training

Innovative

Problem Solving

Regular

Training methods Number of programmes are available for training. Some of these are new and modern training methods. Basically, training methods are classified into on-the job and off-the job training. On-the-Job Training Methods Off-the Job Training Methods Job rotation Vestibule training Coaching Role playing Job instruction Lecture Methods Training through step-by step Conference or discussion Committee assignments Programmed instruction On-the Job training methods (OJT) OJT are most commonly used method. Individual is placed on a regular job and taught skills necessary to perform the job effectively. Job rotation is giving the trainee different experiences and knowledge into job assignments. Usually different departments are given to know the aptitude of the candidate. Coaching is the training given by a supervisor under whom the trainee is placed. Regular feedback given by the supervisor makes the trainee understand the job and the responsibility. Job instruction is also known as the training through step by step. Each step in performing a certain task is explained in this method. Committees assignments are specific tasks are given to a group of individuals to solve an organizational problem. Team work and interpersonal relationship is being given importance in this type of training. Off- the Job Training Under this method, trainee is separated from the job situation and his/her attention is focused on learning the material related to the future job performance. Information Technology and Multi-media technology are used extensively in this type of training. Vestibule training is actual work situation is simulated in a class room. Materials, files, equipment or machinery is used in the class room for training. Role playing is defined as a method of human interaction that involves realistic behaviour in imaginary situations. Lecture method is the traditional and most commonly used off-the job training method as it can take more number of employees. To be effective the trainer should motivate the employees and initiate participation. Conferences or discussion is usually used for clerical, supervisory personnel, and professional employees. Ideas, facts, examples, tests

assumptions and conclusions are used for better performance. Programmed instructions is a new method and popular in recent years. The subject matter to be learned is presented in a series of carefully planned sequential units. These units are arranged from simple to more complex levels of instruction. The trainee goes through these units by answering questions or filling the blanks.

Motivation
Motivation as a concept was recognised in 1912 by Frederick Taylor, but it wasnt fully considered until about 1950-60; when it was discussed by many early theorists in relation to behavioural responses. Many Psychologists have described motivation as a need, desire or want which serves to drive behaviour towards a desired goal (Kleinginna & Kleinginna, 1981). Furthermore, Franken (1994) classified motivation as the arousal, direction and persistence of behaviour. It is apparent that there are no simple clear definitions of motivation. Historically motivation as a concept has its roots in the traditional view of pay rewards as incentives or external rewards. However, with the advent of non-financial incentives such as more work benefits there seems to be a shift towards internal rewards as sources of motivation. Throughout this time period various theories of motivation have been developed such as Maslows hierarchy of needs (1954), Herzbergs two-factor model (1959), Lockes goal setting theory (1968), Warrs vitamin theory (1987), Hackman & Oldhams Job Characteristic Model (1979), Reinforcement Theory Skinner (1953), Adams Equity Theory (1963) and Vrooms Expectancy Theory (1964). A large number of theories of motivation have been developed, varying in usefulness and applicability to modern day organisations. Theory X and Theory Y - McGregor McGregor (1960) classified two of the three common-sense approaches as theory X and theory Y, and suggested that they are adopted by different individuals or the same person at different times (McGregor 1960, Argyris 1964, Schein 1988). The term theory is not used in reference to theoretical frameworks but as a descriptive term to explain the different approaches. It has been suggested that theory X can be used to describe individuals who cannot be trusted and are lazy and unreliable. It is said that such individuals are motivated with the use of financial rewards and threats of punishment. Thus, without these rewards individuals seek their own goals, which are often in conflict with the goals of the organisation (McGregor 1960). Theory Y is the opposite of theory X where the individual seeks self-development and works in line with the goals of the organisation. Theory Z, the social approach, is where an individuals behaviour is determined by social interactions at work; the person feels a sense of belonging at work and is motivated by such feelings more than financial rewards. Maslows Theory

We each have a hierarchy of needs that ranges from "lower" to "higher." As lower needs are fulfilled there is a tendency for other, higher needs to emerge. Daniels. Maslows theory maintains that a person does not feel a higher need until the needs of the current level have been satisfied. Maslow's basic needs are as follows: 1) Basic Human Needs food, air, water, clothes, sex etc. 2) Safety and Security Protection, Stability, Pain avoidance, Routine/order. 3) Social Needs Love and Belongings Affection, acceptance, inclusion. 4) Esteem Needs Self Respect, Self Esteem, and Respected by others. 5) Self- Actualization Achieve full potential, Fulfillment. Herzbergs Theory Herzbergs (1959) Two-Factor model consists of a two part process where factors are both external and internal to the person. The internal factors are termed motivational needs and the external factors are hygiene needs. Motivational needs accounted for peoples achievement, recognition, advancement, responsibility, the work itself, and growth possibilities. Hygiene needs accounted for peoples pay, status, job security, working conditions, company policy, peer relations, and supervision. Lockes Goal setting theory Lockes (1968) goal setting theory can be classified as achievement motivation and can be further segmented into mastery goals, (also known as learning goals) which, involves mastering new knowledge or skills; performance goals (also known as ego-involvement goals) which involves performing well on basic standards with minimal effort; and social goals, which looks at relationships among people. In well-structured environments students with mastery goals tend to perform better than students with either performance or social goals. However, in real world situations high levels of achievement is dependent on maintaining all three goals (Ames 1992). Thus it is suggested that people are motivated to either avoid failure or achieve success (Dweck 1986) It has also been suggested that people who set strong, hard goals are more likely to achieve them (Doyle 2003). Hackman & Oldham (H O Theory) Hackman & Oldham (1979) believed that job characteristics consisting of five

elements which are skill variety, task identity, task significance, autonomy and feedback, influences individuals motivation and psychological well-being, resulting
in positive work outcomes. If an individuals job possesses all these characteristics then that person will have an internal desire to perform well i.e. be intrinsically motivated. This theory seems to be more adaptable to the work environment but it is not without its limitations as not all jobs may fit into such a rigid structure of having five job characteristics. There are other factors also to be taken into account,

such as individual differences which would be addressed later on within the discussion section of this report. Having discussed the intrinsic theories of motivation an attempt is now made to explore theories of motivation which adopt a more extrinsic approach. Reinforcement theory establishes the fundamental and basic ideas of the influences of consequences on behaviour. The ideas of this theory were clearly identified within Skinners (1953) experimental work involving the influence of reward on behaviour. To add further clarification to this theory it simply means that people would probably work harder if they know it would result in positive outcomes. It works on the premises that rewards increase behaviour while punishment decreases behaviour. Equity Theory (Adams, 1963) focuses on the individual and how that person strives to motivate themselves through feelings of equity or inequity i.e. whether or not the situation is fair or unfair. Furthermore, it was proposed that negative feelings in an individual can motivate that person to do something to rectify their situation. Huseman, Hatfield & Miles (1987) suggested that the greater the inequity a person feels the greater the distress felt by the individual; therefore the distress causes the individual to work harder at restoring equity. However, such negative feelings can also lead to a state of de-motivation. Expectancy theory by Vroom The basis for Vrooms (1964) expectancy theory lies in the assumption that people expect certain actions to be able to achieve desired outcomes where the desired outcomes are believed to be worth striving for or avoiding. Motivation is dependent on the strength of the expectancy and the significance of the desired outcomes to the individual. Again this theory like its predecessors assumes that all individuals operate under the same frameworks.

Performance Management
Evaluating and analyzing the performances of all individuals in the organization against the benchmarks set and developing individuals as per the required standard to meet the organizational goals. Performance Evaluation is the process of appraising employees job performance. The following are the steps involved in measuring the performance of individual employees.

Performance management cycle has the following steps: 1) Performance planning 2) Mid-year review 3) Final review and feedback 4) Normalization. The planning will include: 1) Selection of KRAs (Key Result Areas) 2) Setting target and actions plans to achieve the KRAs 3) Designing and allocating the responsibilities 4) Assigning weight age to the responsibilities. The issues in managing performance in Global environment 1. Culture and performance 2. Rewarding Performance 3. Virtual teams 4. Underperformers 5. Subsidiary performance
The performance appraisal methods and common errors appraisal methods common errors Essay appraisal. Halo effect Graphic rating scale. Bias Field review. Leniency and Strictness Forced-choice rating. Central Tendency Critical incident appraisal. Favorable Impressions Management-by-objectives approach. Recency Ranking methods. Assessment centers 360 degree feedback

Effective Communication
Communicating effectively, either orally or in writing, depends on understanding the business client and responding to each situation from the clients point of view. In todays competitive business environment improving communication with clientele promotes business success.

Verbal Communication Verbal communication is the use of language or words in oral or written. Any language can be used for the business communication; however, internationally accepted business communication language is English. Choosing words words are the smallest units of messages. Give importance to words, an effective word is one that your received will understand and that will elicit the response you want. Use a Dictionary and a Thesaurus the two most valuable resources for the business communicator. Six Principles for selecting words for effective messages 1. Choose understandable words 2. Use specific, precise words 3. Choose strong words 4. Emphasize positive words 5. Avoid overused words 6. Avoid obsolete words. Developing written business messages The process for developing written business messages consists of the following three steps: 1. Planning 2. Drafting 3. Finalizing 1. Planning is the step taken before putting words. Analyze the situation by asking the crucial questions like, who will receive the message? What are the constraints? What does the receiver need to know? What action do I want my receiver to take? 2. Drafting the message is using the mental or recorded notes draft the sentences. Apply the principles of communication and use the view point of the receiver and focus on the content. Writers Block is the difficulty in putting the thoughts into words. 3. Finalize the message involves proofreading the document to determine where it needs to be revised and edited. Both are similar processes with different objectives. Revising focus on content; editing focus on mechanics. Non-Verbal Communication Its not always just what you say. Its also how you say it. Nonverbal communication is usually understood as the process of communication through sending and receiving wordless messages.

Such messages can be communicated through gesture; body language or posture; facial expression and eye contact; object communication such as clothing, hairstyles or even architecture; symbols and info graphics; prosodic features of speech such as intonation and stress and other paralinguistic features of speech such as voice quality, emotion and speaking style.
Body language

Clusters of body parts are used to understand body language / gestures. Your eyes, your posture, your overall body language, even your appearance at the time the communication is exchanged, and the voice in which you offer the exchange makes an impact on the effectiveness of communication. In verbal communication, an active dialogue is engaged with the use of words. At the same time, however, non-verbal communication takes place, relying on nonverbal cues, such as gestures, eye contact, facial expressions, even clothing and personal space. Nonverbal cues are very powerful, making it crucial that you pay attention to your actions, as well as the nonverbal cues of those around you. If, during your meeting, participants begin to doodle or chat amongst themselves, they are no longer paying attention to you: Your message has become boring or your delivery is no longer engaging. Once again, you need to be mindful of cultural differences when using or interpreting nonverbal cues. For instance, the handshake that is so widely accepted in Western cultures as a greeting or confirmation of a business deal is not accepted in other cultures, and can cause confusion. While eye contact, facial expressions, posture, gestures, clothing and space are obvious nonverbal communication cues, others strongly influence interpretation of messages, including how the message is delivered. This means paying close attention to your tone of voice, even your voices overall loudness and its pitch. Be mindful of your own nonverbal cues, as well as the nonverbal cues of those around you. Keep your messages short and concise. This means preparing in advance whenever possible. And for the impromptu meeting, it means thinking before you speak. Object Communication: The most common form of object communication is clothing. The types of clothing that people wear are often used to determine their personality. Good examples of

clothing as object communication are school uniforms, military uniforms, dressing by doctors, nurses, bishops etc. Haptics: Touches that can be defined as communication include: Handshakes, holding hands, kissing (cheek, lips, hand), back slap, high five, shoulder pat, brushing arm, etc. Each of these give off nonverbal messages as to the touching person's intentions/ feelings. They also cause positive or negative feelings in the receiver. Chronemics: The way we perceive time, structure our time and react to time is a powerful communication tool. Punctuality, willingness to wait etc. Oculesics: People use their eyes to indicate their interest. This can be done through eye contact. For example, when a professor is giving a lecture, a student may communicate disinterest by reading a magazine instead of looking at the professor's presentation. Handshakes Three steps to a proper handshake:i. As you're approaching someone, extend your right arm when you're about three feet away. Slightly angle your arm across your chest, with your thumb pointing up. ii. Lock hands, thumb joint to thumb joint. Then, firmly clasp the other person's hand without any bone crushing or macho posturing. iii. Pump the other person's hand two to three times and let go Phone tips a) Answer in a prompt and courteous manner b) Treat everyone with respect c) Keep a calm but neutral tone of voice d) Keep a relaxed body posture e) Inform callers we want to connect them to the resource/person they need. f) Empathize with the caller g) Focus on the problem h) Do not blindly transfer callers i) Answering Your Phone j) Always identify yourself when you answer the phone: "This is (Name)." k) Speak in a pleasant tone of voice - the caller will appreciate it. l) Learn to listen actively and listen to others without interrupting. m) When you are out of the office or away from your desk for more than a few minutes, forward your phone to voicemail. n) Use the hold button when leaving a line so that the caller does not accidentally overhear conversations being held nearby.

o) If the caller has reached a wrong number, be courteous. Be businesslike and be effective. p) Speaking to the point and ending conversations within a reasonable time frame without being rude or rushing the callers. Taking Messages a) When taking messages be sure to ask for: (1) Caller's name (asking the caller for correct spelling if required) (2) Caller's phone number and/or extension (including area code) b) Repeat the message to the caller. c) Be sure to fill in the date, time, and your initials. d) Place the message slip in the called party's inbox or in a conspicuous place in their office, such as their chair. Making Calls When you call someone and they answer the phone, do not say "Who am I speaking with?" without first identifying yourself: "This is (name). To whom am I speaking?" Always know and state the purpose of the communication. When you reach a wrong number, don't argue with the person who answered the call or keep them on the line. Say: "I'm sorry, I must have the wrong number. Please excuse the interruption." And then hang up. If you told a person you would call at a certain time, call them as you promised. If you need to delay the conversation, call to postpone it, but do not make the other person wait around for your call. If you don't leave a number/message for someone to call you back, don't become angry if they are not available when you call again. How to End Conversations Gracefully There are several ways that you can end a long phone call without making up a story or sounding rude: Leave the conversation open. Promise to finish your discussion at another time. Tell the person how much you've enjoyed speaking with him/her. Be honest and polite. Communicate powerfully by Email

Considerations before writing an Email Message


a) b) c) d) What is the purpose of the communication? Is the information personal, official or confidential? Is there an alternative communication method? Is the use of this communication tool an avoidance mechanism?

For further reading 1. P. Subha Rao, Human Resource Management, Himalaya Publishing House, Chapter 1, 2, 5, 6, and 7 2. Krizan, Merrier, Logan, Williams, Effective Business Communication, Cengage Learning, Chapter 4, 5, 13, 15, and 17. 3. Rai and Rai, Managerial Communication, Himalaya Publishing House, Chapter 2, 4, 9, 11, 16 and 24. 4. Stephen P. Robbins, Organizational Behaviour, 13th Edition, Pearson House, Chapter 06, and 07.

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