HUMAN RESOURCE MANAGEMENT

MB0027
SET – 1

MBA – 1 SEM

Name Mohammed Roohul Ameen

Roll Number
Learning Center SMU Riyadh (02543)
Subject Human Resource Management
Date of Submission 15th August 2009
Assignment Number MB0027
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Assignment MBA 1st Semester Subject: MB0027
1. Discuss the difference between personnel management and Human Resource
Management.

1. Human Resources Management (HRM), which encompasses all the tasks involved in acquiring,
maintaining, and developing an organization's human resources, is the part of an organization or firm
that helps a company to reach its goals and then oversee their training and development, motivation,
evaluation, and compensation, all of which are critical to a company's success. Due to the accelerating
rate at which today's workforce, economy, corporate cultures, and legal environment are being
transformed, the role of HRM is increasingly viewed as a strategic one.

2. Personal Management is concerned with the welfare and performance of persons who are a part of
the operation. They handle task of seeing to programs and setting policies that impact everyone
associated with the company. Determining company policies and procedures is another important
aspect of the personnel management process. HR functions often include drafting vacation, sick leave,
and bereavement policies that apply to all employees. The personnel management team is also often
responsible for managing any healthcare program provided to the employees as well.

3. HRM is a broad concept which covers many personnel aspects and includes social, professional and
individual enterprise aspects, whereas Personnel Management focuses only on personnel aspects such
as leadership, justice determination, task specialization, staffing, performance appraisal, etc.

4. HRM is more growth oriented whereas Personnel Management is slightly narrow. Human Resource
Planning is very vital in HRM. This is because it leads to the maximum utilization of human resources,
reduces excessive labor turnover and high absenteeism; improves productivity and aids in achieving
the objectives of an organization.

5. HRM emphasizes on training, an important area of personnel, which covers the following aspects:
1. Increasing productivity;
2. Improving quality;
3. Improving organizational climate;
4. Ensuring personnel growth etc.
6. In practice both pertained to people management philosophically the approach is vastly
different.

7. The expectations from Personnel management approach is to ‘take care’ of the people working in a
organization, addressing grievances and complaints formed a large part of the Personnel Management
function. The focus is largely reactive and followed the Theory X approach.

8. Employee welfare is of paramount importance and managing industrial relations as a result of

heightened trade union activity formed the highlights of the Personnel Management functions.

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Assignment MBA 1st Semester Subject: MB0027
2. Explain the Human Resource Planning System.

Human Resource planning can be defined as a process by which an organization ensures that it has the
right number and kinds of people, at the right place, at the right time, capable of effectively and
efficiently completing those tasks that will help the organization achieve its overall objectives or in
other words HRP can be defined as planning for the future personnel needs of an organization, taking
into account both internal activities and factors in the external environment.

Need and Importance of HRP

Human resource Planning translates the organization objectives and plans into the number of workers
needed to meet these objectives. The need and importance of HRP is as follows:

HRP helps in determining the future manpower requirements and avoids problems like over staffing or
understaffing in the organization. HRP helps in tackling with the factors like competition, technology,
government policies etc. that generates changes in the job content, skill requirements and number and
types of personnel required. Now a days there is a demand of exceptional intellectual skills while the
existing staff becomes redundant, the HR manager has to attract and retain qualified and skilled
personnel and also required to deal with issues like career development, succession planning for which
he takes the help of HRP.

A proper and realistic human resource plan is needed to ensure equal employment and promotional
appointments to the candidates for weaker sections, physically handicapped and socially and politically
oppressed citizens. HRP provides valuable and timely information for various designing and execution
of personnel functions like recruitment, selection, transfers, promotions, layoffs, training and
development and performance appraisal. It helps the organization to anticipate imbalance in human
resources, which in turn will facilitate reduction in personal costs. HRP facilitates planning for future
needs which will help in better planning of assignments to develop managers and to ensure the
organization has a steady supply of experienced and skilled employees.

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Assignment MBA 1st Semester Subject: MB0027
Factors affecting Human Resource Planning

HRP is a dynamic and ongoing process. The process of updating is not very simple, since HRP is
influenced by many factors, which are as follows: The type of organization determines the production
process and number and type of staff needed. The human resource needs of an organization depend
on the strategic plan adopted by it. For e.g. the growth of a business calls for hiring of additional labor,
while mergers will need a plan for layoffs. Organization operates under different political, social
environment and has to carefully formulate the HR policies and so the HR manager has to evolve
suitable mechanism to deal with uncertainties through career developments, succession planning,
retirement schemes etc. HRP also depends on the time periods and accordingly the short and long-
term plans are adopted. And this time span is based on the degree of environmental uncertainties. The
type and quality of information used in making forecasting is an important factor influencing HRP.
Accurate and timely human resource information system helps in getting better quality personnel. HRP
is required to ensure that suitable candidates should be appointed at the right kind of job.

Limitations of Human Resource Planning

It is very difficult to ascertain future manpower requirements of an organization, as future is always

uncertain. It is more relevant to the countries that face the problem of scarcity of human resources. It
is a time consuming and costlier process. It is beneficial in the organizations that adopt a professional
approach and at the same time are conscious about the changing environment. HRP is beneficial where
adequate skilled manpower is available. HRP is also made difficult in the organizations that have a very
high labor turnover.

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Assignment MBA 1st Semester Subject: MB0027
3. Write a detailed note on training needs identification.

Part I: Introduction

Training need identification is a tool utilized to identify what educational courses or activities should be
provided to employees to improve their work productivity. Here the focus should be placed on needs
as opposed to desires of the employees for a constructive outcome. In order to emphasize the
importance of training need identification we can focus on the following areas: -

 To pinpoint if training will make a difference in productivity and the bottom line.
 To decide what specific training each employee needs and what will improve his or her job
performance.
 To differentiate between the need for training and organizational issues and bring about a
match between individual aspirations and organizational goals.

Identification of training needs (ITN), if done properly, provides the basis on which all other training
activities can be considered. Also requiring careful thought and analysis, it is a process that needs to be
carried out with sensitivity as people's learning is important to them, and the reputation of the
organization is also at stake.

Identification of training needs is important from both the organizational point of view as well as from
an individual's point of view. From an organization’s point of view it is important because an
organization has objectives that it wants to achieve for the benefit of all stakeholders or members,
including owners, employees, customers, suppliers, and neighbors. These objectives can be achieved
only through harnessing the abilities of its people, releasing potential and maximizing opportunities for
development. Therefore people must know what they need to learn in order to achieve organizational
goals. Similarly if seen from an individual's point of view, people have aspirations, they want to develop
and in order to learn and use new abilities, people need appropriate opportunities, resources, and
conditions. Therefore, to meet people's aspirations, the organization must provide effective and
attractive learning resources and conditions. And it is also important to see that there is a suitable
match between achieving organizational goals and providing attractive learning opportunities.

Also in order to bring synchronization between organizational and individual objectives people need to
question the way they do things. And this is precisely the hidden objective behind any training need
identification process. It should ideally be a long-term process of encouraging employees to take an
active involvement in their own development, thus increasing their commitment to learning, to their
work, and to the organization as a whole.

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Assignment MBA 1st Semester Subject: MB0027
Part II: Different Levels at which it is to be Conducted

Identification of training needs can be done at three levels to ascertain three kinds of needs: -

Organizational Needs
These concern the performance of the organization as a whole. Here identification of training needs is
done to find out whether the organization is meeting its current performance standards and objectives
and if not, exploring ways in which training or learning might help it to do so. Sometimes organizational
training needs are also identified when the organization decides that it has to adopt a major new
strategy, create a new product or service, undergo a large-scale change program, or develop significant
new relationships, such as joining with others to form new partnerships.

Group Needs
Since working in groups and teams have become very much prevalent in today's corporate world that is
why nowadays there is increased emphasis given on team effectiveness and team performance. So
training needs are nowadays even identified at the group level. Training needs here are concerned
basically with the performance of a particular group, which may be a team, department, function, sub-
unit, or so on. Information about this group’s performance may identify areas of need - which, again,
may be for training or other interventions. It is used to find out how efficiently a particular team or
group goes about its business and meets its current objectives.

Individual Needs
These concern the performance of one or more individuals (as individuals, rather than as members of a
group). Here identification of training needs is about finding out to what extent individuals need to
learn or be trained in order to bring their current performance up to the required level as a result of
changes in methods and processes that call for new competencies and skills.

It also sees to it that there is continuous improvement initiative taken by them. Moreover it also helps
to find out whether individuals are comfortable in working across boundaries, with people from
different backgrounds and different perspectives. This is especially important because there is so much
work force diversity observed today in organizations that it has become impossible to retain workforce,
which is not flexible enough to accommodate such changes into their daily work schedule.

Part III: Sources for Identifying Training Needs

There are three sources for identifying training needs. Although they are independent sources for
gathering the necessary data but it is usually beneficial if they are considered complementary to one
another as the objective of the exercise is to prepare as consolidated data of training needs as possible.
The three sources are as follows: -

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Assignment MBA 1st Semester Subject: MB0027
Job Profile

It is a comprehensive description of all the functions and the responsibilities that a person has to carry
out in due course of his job. It is very common for us sometimes to find that people of a particular
department more or less perform the same kind of job and therefore a comparative study can be done
on their performance to pinpoint on the training needs of those people who have not performed up to
the mark. In here we can also include Job analysis in order to have a realistic and systematic appraisal
of training needs. In order to do this first we need to break up the functions and responsibilities into
categories. Next we have to classify these tasks/activities on the basis of their relative importance to
the nature of the job. And lastly we can compute a priority listing of these tasks in order to have a
catalogue of knowledge, skills and attitudes required for effective performance of the job.

Experiences of the training agency

It is very common for organizations nowadays to hire professional training agencies in order to look
into the training matters. The training agency and the trainers thus should also draw from their own
experiences of organizing programmers for comparable groups or in similar areas.

However, earlier experiences can only serve to facilitate the process. It cannot be the sole basis, as
training needs of majority of organizations are very specific.

Pre-training survey of the participant's needs

This is suggested as the best way to conduct a training need identification .A pre-training survey is
nothing but a survey of the needs and expectations of the participants well in advance of the program.
And in this exercise it is better to include the superiors also as they are in a good position to provide
necessary data on the training needs of their associates, especially in context of their performance. This
is generally done in a systematic manner with the help of a structured questionnaire in order to reflect
the genuine desire to involve the participants and the organization in the planning process. However it
might happen in certain cases that it is not possible to actively involve the superiors due to various
reasons like lack of time etc but in that case at least they must be kept fully informed of the
proceedings.

Part IV : Overall Process in Brief

Step 1: Define and chart part of the organization in which the work has to be done. It is to have a
focused approach of the study. It could either be a particular department, a section, a unit, a specific
group or a staff category.

Step 2: Use various data collection measures to collect both qualitative as well as quantitative data.

Step 3: Analyze the entire data collected in order to find out causes of problem areas and prioritize
areas, which need immediate attention.

Step 4: Prioritize the different training programmers according to the responses collected.

Step 5: Record and file the entire data so that it can be used for future reference while designing the
training programs / training calendar.

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Assignment MBA 1st Semester Subject: MB0027
Part V : Benefits of Needs Assessment

As pointed above needs assessment helps diagnose the causes of performance deficiency in employees
that require remedial actions. This being a generalized statement there are certain specific benefits of
needs assessment. They are as follows: -

 The organization is informed about the broader needs of the participants. Through this process
it may be possible that certain new training programs, which were, previously not in their list
may come to the forefront.
 The organization is able to reduce the perception gap between the participant and his/her boss
about their needs and expectations from the training program.
 The organization is also able to pitch its course input closer to the specific needs of the
participants.
 It also saves a lot of money for the organization as otherwise money is just unnecessarily
wasted on those training programs, which are either not needed by the employees or they have
no interest in undertaking them.
 Lastly, time, which is the most important resource today, is also saved, as the training programs
conducted are the ones, which are actually needed by the participants.

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Assignment MBA 1st Semester Subject: MB0027
4. Explain different types of appraisal methods.

Performance evaluation is the personnel activity by means of which the enterprise determines the
extent to which the employee is performing the job effectively and for performance evaluation to be
more than a yearly paperwork exercise, top management must encourage its use and use it to make
reward decisions such as promotions.

Types of Appraisal Methods

There are several ways to classify these tools. The three categories used here will be; Individual
evaluation methods; Multiple person evaluation methods; and other methods.

I. Individual evaluation Methods:

There are five ways to evaluate an employee individually. In these systems, employees are evaluated
one at a time without directly comparing them with other employees. They are:

1. Graphic rating scale: In this technique, the evaluator is presented with a graph and asked to rate
employees on each of the characteristics listed. The number of characteristics rated varies from a few
to several dozen. A factor analysis of the results indicates that only two traits were being rated: quality
of performance and ability to do the present job.

2. Forced choice: In forced choice, the evaluator must choose from a set of descriptive statements
about the employee. The two, three, or four statement items are grouped in a way that the evaluator
cannot easily judge which statements apply to the most effective employee.

3. Essay evaluation: the evaluator is asked to describe the strong and weak aspects of the employee's
behavior. The essay method can be used by evaluators who are superiors, peers, or subordinates of the
employee to be evaluated.

4. Management by objectives: In this system, the supervisor and employee to be evaluated jointly set
objectives in advance for the employee to try to achieve during a specified period. The method
encourages, if not requires, them to phrase these objectives primarily in quantitative terms. This
approach combines the superior and self evaluation systems.

5. Critical incident technique: In this technique, personnel specialists and operating managers prepare
lists of statements of very effective and very ineffective behavior for an employee. These are the
critical incidents. The critical incident technique is more likely to be used by superiors than in peer or
subordinate evaluations.

6. Checklists and weighted checklists: In its simplest form, the checklist is a set of objectives or
descriptive statements. If the Rater believes that the employee possesses a trait listed, the Rater
checks the items; if not, the Rater leaves it blank. A rating score from the checklist equals the number
of checks the employee's evaluation is the sum of the scores (weights) on the items checked. Checklists
and weighted checklists can be
used by evaluators who are superiors, peers, or subordinates, or by a combination.

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Assignment MBA 1st Semester Subject: MB0027
7. Behaviorally anchored rating scales: BARS called the behavioral expectation scale (BES). This is a
new, relatively infrequently used technique. Supervisors give descriptions of actually good and bad
performance, and personnel specialists group these into categories (five to ten is typical). As with
weighted checklists, the items are evaluated by supervisors (often other than those who submitted the
items).

II. Multiple person Evaluation Methods

The techniques described above are used to evaluate employees one at a time. Three techniques that
have been used to evaluate an employee in comparison with other employees being evaluated are
discussed in this section.

1. Ranking: In ranking method, the evaluator is asked to rate employees from highest to lowest on
some overall criterion. Simple ranking can be improved by alternative ranking. In this approach the
evaluators pick the top and bottom employees first, then select the next highest and next lowest, and
move towards the middle.

2. Paired comparison: This approach makes the ranking method easier and more reliable. First, the
names of the persons to be evaluated are placed on separate sheets (or cards) in a predetermined
order, so that each person is compared to all others to be evaluated. The evaluator then checks the
person he feels is the better of the two on a criterion for each comparison. Typically the criterion is
overall ability to do the present job. The number of times a person is preferred is tallied, and this
develops an index of the number of preferences compared to the number being evaluated.

3. Forced distribution: The forced distribution system is similar to 'grading on a curve’. The evaluator is
asked to rate employees in some fixed distribution of categories, such as 10 percent in low, 20 percent
in low average, 40 percent in average, 20 percent in high average, and 10 percent in high. One way to
do this is to type each employee's name on a card and ask the evaluators to sort the cards into five
piles corresponding
to the ratings. This should be done twice for the two key criteria of job performance and promo ability.
One reason forced distribution was developed was to try to alleviate such problems as inflated ratings
and central tendency in the graphic rating scale.

III. 360 Degree Appraisal

The multiple input approaches to performance feedback is sometimes called "360degree assessment"
to connote that full circle. There are no prohibitions in law or regulation against using a variety of rating
sources, in addition to the employee's supervisor, for assessing performance assessment approaches
with multiple rating sources provide more accurate, reliable, and credible information. For this reason,
Personnel Management supports the use of multiple rating sources as an effective method of assessing
performance for formal appraisal and other evaluative and developmental purposes.

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Assignment MBA 1st Semester Subject: MB0027
5. Write a note on Motivation Techniques.

Basic Principles to Remember

1. Motivating employees starts with motivating yourself

It's amazing how, if you hate your job, it seems like everyone else does, too. If you are very stressed
out, it seems like everyone else is, too. Enthusiasm is contagious. If you're enthusiastic about your job,
it's much easier for others to be, too. Also, if you're doing a good job of taking care of yourself and your
own job, you'll have much clearer perspective on how others are doing in theirs.
A great place to start learning about motivation is to start understanding your own motivations. The
key to helping to motivate your employees is to understand what motivates them. So what motivates
you? Consider, for example, time with family, recognition, a job well done, service, learning, etc. How is
your job configured to support your own motivations? What can you do to better motivate yourself?

2. Always work to align goals of the organization with goals of employees

As mentioned above, employees can be all fired up about their work and be working very hard.
However, if the results of their work don't contribute to the goals of the organization, then the
organization is not any better off than if the employees were sitting on their hands -- maybe worse off!
Therefore, it's critical that managers and supervisors know what they want from their employees.
These preferences should be worded in terms of goals for the organization. Identifying the goals for the
organization is usually done during strategic planning. Whatever steps you take to support the
motivation of your employees (various steps are suggested below), ensure that employees have strong
input to identifying their goals and that these goals are aligned with goals of the organization. (Goals
should be worded to be "SMARTER". More about this later on below.)

3. Key to supporting the motivation of your employees is understanding what motivates each of
them
Each person is motivated by different things. Whatever steps you take to support the motivation of
your employees, they should first include finding out what it is that really motivates each of your
employees. You can find this out by asking them, listening to them and observing them. (More about
this later on below.)
4. Recognize that supporting employee motivation is a process, not a task
Organizations change all the time, as do people. Indeed, it is an ongoing process to sustain an
environment where each employee can strongly motivate themselves. If you look at sustaining
employee motivation as an ongoing process, then you'll be much more fulfilled and motivated yourself.

5. Support employee motivation by using organizational systems (for example, policies and
procedures) -- don't just count on good intentions
Don't just count on cultivating strong interpersonal relationships with employees to help motivate
them. The nature of these relationships can change greatly, for example, during times of stress.
Instead, use reliable and comprehensive systems in the workplace to help motivate employees. For
example, establish compensation systems, employee performance systems, organizational policies and
procedures, etc., to support employee motivation. Also, establishing various systems and structures
helps ensure clear understanding and equitable treatment of employees.

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Assignment MBA 1st Semester Subject: MB0027
Steps You Can Take

1. Briefly write down the motivational factors that sustain you and what you can do to sustain them
This little bit of "motivation planning" can give you strong perspective on how to think about
supporting the motivations of your employees.

2. Make of list of three to five things that motivate each of your employees
Read the checklist of possible motivators. Fill out the list yourself for each of your employees and then
have each of your employees fill out the list for themselves. Compare your answers to theirs. Recognize
the differences between your impressions of what you think is important to them and what they think
is important to them. Then meet with each of your employees to discuss what they think are the most
important motivational factors to them. Lastly, take some time alone to write down how you will
modify your approaches with each employee to ensure their motivational factors are being met.
(NOTE: This may seem like a "soft, touchy-feely exercise" to you. If it does, then talk to a peer or your
boss about it. Much of what's important in management is based very much on "soft, touchy-feely
exercises". Learn to become more comfortable with them. The place to start is to recognize their
importance.)

3. Work with each employee to ensure their motivational factors are taken into consideration in your
reward systems
For example, their jobs might be redesigned to be more fulfilling. You might find more means to
provide recognition, if that is important to them. You might develop a personnel policy that rewards
employees with more family time, etc.

4. Have one-on-one meetings with each employee

Employees are motivated more by your care and concern for them than by your attention to them. Get
to know your employees, their families, their favorite foods, names of their children, etc. This can
sound manipulative -- and it will be if not done sincerely. However, even if you sincerely want to get to
know each of your employees, it may not happen unless you intentionally set aside time to be with
each of them.

5. Cultivate strong skills in delegation

Delegation includes conveying responsibility and authority to your employees so they can carry out
certain tasks. However, you leave it up to your employees to decide how they will carry out the tasks.
Skills in delegation can free up a great deal of time for managers and supervisors. It also allows
employees to take a stronger role in their jobs, which usually means more fulfillment and motivation in
their jobs, as well.

6. Reward it when you see it

A critical lesson for new managers and supervisors is to learn to focus on employee behaviors, not on
employee personalities. Performance in the workplace should be based on behaviors toward goals, not
on popularity of employees. You can get in a great deal of trouble (legally, morally and interpersonally)
for focusing only on how you feel about your employees rather than on what you're seeing with your
eyeballs.

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Assignment MBA 1st Semester Subject: MB0027
7. Reward it soon after you see it
This helps to reinforce the notion that you highly prefer the behaviors that you're currently seeing from
your employees. Often, the shorter the time between an employee's action and your reward for the
action, the clearer it is to the employee that you highly prefer that action.

8. Implement at least the basic principles of performance management

Good performance management includes identifying goals, measures to indicate if the goals are being
met or not, ongoing attention and feedback about measures toward the goals, and corrective actions
to redirect activities back toward achieving the goals when necessary. Performance management can
focus on organizations, groups, processes in the organization and employees.

9. Establish goals that are SMARTER

SMARTER goals are: specific, measurable, acceptable, realistic, timely, extending of capabilities and
rewarding to those involved.

10. Clearly convey how employee results contribute to organizational results

Employees often feel strong fulfillment from realizing that they're actually making a difference. This
realization often requires clear communication about organizational goals, employee progress toward
those goals and celebration when the goals are met.

11. Celebrate achievements

This critical step is often forgotten. New managers and supervisors are often focused on a getting "a lot
done". This usually means identifying and solving problems. Experienced managers come to
understand that acknowledging and celebrating a solution to a problem can be every bit as important
as the solution itself. Without ongoing acknowledgement of success, employees become frustrated,
skeptical and even cynical about efforts in the organization.

12. Let employees hear from their customers (internal or external)

Let employees hear customers proclaim the benefits of the efforts of the employee . For example, if
the employee is working to keep internal computer systems running for other employees (internal
customers) in the organization, then have other employees express their gratitude to the employee. If
an employee is providing a product or service to external customers, then bring in a customer to
express their appreciation to the employee.

13. Admit to yourself (and to an appropriate someone else) if you don't like an employee --
Managers and supervisors are people. It's not unusual to just not like someone who works for you. That
someone could, for example, look like an uncle you don't like. In this case, admit to yourself that you
don't like the employee. Then talk to someone else who is appropriate to hear about your distaste for
the employee, for example, a peer, your boss, your spouse, etc. Indicate to the appropriate person that
you want to explore what it is that you don't like about the employee and would like to come to a
clearer perception of how you can accomplish a positive working relationship with the employee. It
often helps a great deal just to talk out loud about how you feel and get someone else's opinion about
the situation. As noted above, if you continue to focus on what you see about employee performance,
you'll go a long way toward ensuring that your treatment of employees remains fair and equitable.

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Assignment MBA 1st Semester Subject: MB0027
6. Elaborate the importance of grievance handling.

Maintaining quality of work life for its employees is an important concern for the any organization. The
grievance handling procedure of the organization can affect the harmonious environment of the
organization. The grievances of the employees are related to the contract, work rule or regulation,
policy or procedure, health and safety regulation, past practice, changing the cultural norms
unilaterally, individual victimization, wage, bonus, etc. Here, the attitude on the part of management in
their effort to understand the problems of employees and resolve the issues amicably have better
probability to maintain a culture of high performance. Managers must be educated about the
importance of the grievance process and their role in maintaining favorable relations with the union.
Effective grievance handling is an essential part of cultivating good employee relations and running a
fair, successful, and productive workplace. Positive labor relations are two-way street both sides must
give a little and try to work together. Relationship building is key to successful labor relations.

Importance of Grievance Handling

The grievance handling / dispute handling process starts from the desk of a senior manager, where
should try to settle the grievance at the first stage i.e before the grievance has left the jurisdiction of
the supervisor. This requires that the manager is competent and trained in handling a grievance
problem and handling the grievance using scientific method is most productive for a satisfactory
solution.

Causes of employee grievances could be grouped under different major headings, some of the causes
that need to be considered are:

1. Promotions;
2. Amenities;
3. Continuity of Services;
4. Compensation;
5. Disciplinary action;
6. Fines;
7. Increments;
8. Wages;
9. Acting Promotion;
10. Recovery of dues;
11. Safety appliance;
12. Superannuation;
13. Supersession;
14. Transfer;
15. Victimization;
16. Conditions of work.

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Assignment MBA 1st Semester Subject: MB0027