Introduction to Human Resource Management

Introduction to HRM : Contents

Detailed Contents

Part One: Overview of Human Resource Management
1. INTRODUCTION TO HRM 3
Definition and Concept of Human Resource Management 4
History of Human Resource Management 5
Scientific Management Approach 5
Human Relations Approach 6
Human Resources Approach 7
Functions of Human Resource Management 8
Managerial Functions 8
Operative Functions 10
HR Policies and Procedures 14
Emerging Role of Human Resource Management 15
Value of Human Resources 15
Role of HR Executives 16
Challenges to HR Professionals 17
Worker Productivity 17
Quality Improvement 19
The Changing Attitudes of Workforce 19
The Impact of the Government 21
Quality of Work Life 21
Technology and Training 22
Strategic Human Resource Management 22

2. ORGANIZATIONAL STRUCTURE AND HRM 24
Organizational Structure and Human Resource Management 25
Formal and Informal Organizations 26
Formal Organization 26
Informal Organization 27
Tall and Flat Organizational Structures 28
Responsibility, Authority and Accountability 29
Responsibility 29
Authority 30
Accountability 30
Line and Staff Functions 30
Line and Staff Relationship 31
Line – Staff Conflict 31
Human Resource Management as Line Responsibility 32
Human Resource Management as a Staff Function 32
The Role of Human Resource Department in an Organization 33
Human Resource Management and Other Organizational Functions 33
Products and Human Resources 34
Production and Human Resources 34
Marketing and Human Resources 35
Management Techniques and Human Resources 35
Organizational Structure and Human Resources 35

3. INTERNATIONAL HUMAN RESOURCE MANAGEMENT 37
Concept of IHRM 38
Approaches to IHRM 41
Ethnocentric Approach 41
Polycentric Approach 41
Geocentric Approach 41
Features of IHRM 41
Increased Complexity of HR Activities 42
Cultural Awareness and Tolerance 42
Stronger Relationship with Employees and their Families 42
Different Expectations and Requirements of Employees across Cultures 43
Management of Cross-cultural Teams 43
Diluted Risk on the Business Front and Increased Risk on People Front 44
Importance of IHRM 45
Factors Affecting IHRM 46
National Culture 46
Political Forces 47
Economic Forces 47
Market Forces 48
Technology Changes 48
Legal Forces 48
Labor Forces 48
Corporate Culture 48
Different IHRM Activities 49
Job Analysis and Human Resource Planning 49
Recruitment & Selection 49
Training & Development 49
Performance Appraisal Management 49
Compensation Management 50
Career Management & Development 50
Unionism and Industrial Relations 50
Managing Cross-cultural Issues 50
Strategic IHRM 50

Part Two: Employment of Human Resources

4. HUMAN RESOURCE PLANNING 55
Definition of Human Resource Planning 56
Objectives of Human Resource Planning 56
Human Resource Planning at Different Planning Levels 57
The Process of Human Resource Planning 59
Assessing Current Human Resources and Making an Inventory 59
Forecasting 60
Matching the Inventory with Future Requirements 61
Managing the Forecasted Demand/Surplus 61
Managing Future Demand 62
Managing Future Surplus 62
Dealing with Surplus Manpower 62
Growing Importance of Human Resource Planning 64
Current Trends 65

5. JOB ANALYSIS AND DESIGN 67
Concept of Job Analysis 68
Process of Job Analysis 69
Information Gathering 69
Job-Specific Competency Determination 70
Developing a Job Description 70
Developing a Job Specification 70
Job Analysis Methods 70
Observation Method 71
Individual Interview Method 71
Group Interview Method 71
Questionnaire Method 71
Technical Conference Method 71
Diary Method 72
Functional Job Analysis 72
Position Analysis Questionnaire (PAQ) 73
Critical Incident Technique (CIT) 74
Job Analysis Information 74
Job Description 75
Drafting and Maintaining Job Description 76
Job Specification 77
Uses of Job Analysis 77
Employment 77
Organization Audit 78
Training and Development 78
Performance Appraisal 78
Promotion and Transfer 78
Preventing Dissatisfaction 78
Compensation Management 78
Health and Safety 78
Induction 78
Industrial Relations 79
Career Planning 79
Succession Planning 79
Issues in Job Analysis 79
Job Design 81
Different Approaches to Job Design 82
Modern Management Techniques 86
Job Rotation 87
Job Enlargement 87
Job Enrichment 87
Some More Modern Management Techniques 89

6. RECRUITMENT 91
Concept of Recruitment 92
Factors Affecting Recruitment 92
Organizational Factors 92
Environmental Factors 94
Recruitment Policy 94
Sources of Recruitment 96
Internal Search 96
External Sources 97
Need for Flexible and Proactive Recruitment Policy 102
Evaluation of a Recruitment Program 103

7. SELECTION 105
Concept of Selection 106
The Selection Process 107
Selection Method Standards 109
Reliability 109
Validity 111
Generalizability 112
Utility 112
Legality 112
Application Forms 112
Evaluation of Application Forms 114
Ethical Issues in Application Form Design 115
Selection Tests 115
Intelligence Tests 115
Aptitude Tests 116
Achievement Tests 116
Situational Tests 117
Interest Tests 117
Personality Tests 117
Polygraph Tests 118
Graphology 118
Interviews 118
Preliminary Interview 118
Selection Interview 119
Decision-Making Interview 120
The Interview Process 120
Preparation 120
Setting 121
Conduct of Interview 121
Closing an Interview 121
Evaluation 123
Reference Checks 123
Medical Examination 123
Placement 123

8. SOCIALIZATION 125
Concept of Orientation 126
Objectives of Induction/Orientation 128
Role of Organizational Culture in Orientation 129
Roles 130
Values 130
Norms 130
The Process of Socialization 131
Assumptions 132
Model of Socialization Process 134
Socialization Strategies 135
Formal or Informal Socialization Strategies 136
Individual or Collective Socialization Strategies 136
Sequential or Non-sequential Socialization Strategies 137
Fixed or Variable Socialization Strategies 137
Tournament or Contest Socialization Strategies 137
Serial or Disjunctive Socialization Strategies 138
Investiture or Divestiture Socialization Strategies 138
Socialization of Existing Employees 138

Part Three: Management and Development of Human Resources

9. MANAGING CAREERS 143
Concept of Career 144
Career Anchors 145
Autonomy/Independence 146
Security/Stability 146
Technical/Functional Competence 146
General Management 146
Entrepreneurial Creativity 146
Service 146
Pure Challenge 146
Life Style 146
Elements of a Career Planning Program 147
Individual Assessment and Need Analysis 147
Organizational Assessment and Opportunity Analysis 148
Need Opportunity Alignment 149
Career Counseling 149
The Benefits of Career Planning to an Organization 150
Ensures Availability of Resources for Future 150
Enhances Organizational Ability to Attract and Retain Talent 151
Ensures Growth Opportunities for All 151
Handles Employee Frustration 151
The Benefits of Career Planning to an Individual 151
Issues in Career Planning 151
Dual Career Families 153
Low Ceiling Careers 153
Declining Opportunities 153
Career Stages 153
Restructuring 154
Career Plateaus 154
Work-family Issues 154
Career Development Cycle 154
Exploration Stage 155
Establishment Stage 155
Maintenance Stage 156
Disengagement Stage 156
Career Objectives and the Career Path 156
Promotion 156
Transfer 157
Model for Planned Self-Development 157
Self Assessment 158
Opportunity Analysis 158
Decision-Making 158
Leverage Network 159
Venture 159
Continuous Assessment 159
Succession Planning 159
Continuity 159
Long-Term Perspective 159
Organizational Need Perspective 159
Turnover Management 161
Emphasis on Results 161

10. PERFORMANCE APPRAISAL 162
Concept of Performance Appraisal 163
Objectives of Performance Appraisal 163
The Appraisal Process 164
The Appraisers 166
Self-Appraisal 168
Supervisors 168
Peers 168
Customers/Clients 168
Subordinates 168
Performance Appraisal Methods 169
Management by Objectives (MBO) 170
Graphic Rating Method 170
Work Standards Approach 171
Essay Appraisal 171
Critical Incident Method 172
Forced Choice Rating Method 172
Point Allocation Method 172
Ranking Methods 173
Checklist 173
Behaviorally Anchored Rating Scale (BARS) 173
360 Degree Performance Appraisal 174
Team Appraisals 174
Balanced Scorecard 175
The Appraisal Interview 175
Challenges of Appraisal Interview 176
How do we face the Challenges? 177
Pitfalls in Performance Appraisal 178
Uses of Performance Appraisal 180
Ethics of Performance Appraisal 181

11. EMPLOYEE TRAINING AND MANAGEMENT DEVELOPMENT 184
Definition and Purpose of Training 185
Improving Employee Performance 186
Updating Employee Skills 186
Avoiding Managerial Obsolescence 186
Preparing for Promotion and Managerial Succession 186
Retaining and Motivating Employees 186
Creating an Efficient and Effective Organization 186
Assessing Training Needs 186
Areas of Training 187
Importance of Learning 188
Employee Training Methods 190
On-the-Job Training 190
Off-the-Job Training 192
Evaluation of the Training Program 194
Training and Development 195
Concept of Management Development 196
Work Roles of a Manager 197
Objectives of Management Development 198
Process of Management Development 199
Management Development Methods 200
On-the-Job Development Methods 200
Off-the-Job Development Methods 202
Evaluating a Management Development Program 204

12. COMPENSATION MANAGEMENT 207
Definition and Objectives of Job Evaluation 208
Objectives 209
Principles of Job Evaluation 209
Process of Job Evaluation 209
Techniques of Job Evaluation 210
Non-Quantitative Techniques 210
Quantitative Techniques 212
Advantages of Job Evaluation 215
Limitations of Job Evaluation 216
Concept of Compensation Administration 216
Principles Governing Compensation Administration 216
Purpose of Compensation Administration 217
Different Concepts of Wages 217
Minimum Wage 217
Fair Wage 218
Living Wage 218
Basic Wage Plans 219
Time Wage Plan 219
Piece Wage Plan 219
Skill-based Pay 220
Competency-based Pay 220
Broadbanding 220
Variable Compensation 221
Executive Compensation 221
Wage Differentials 224
National Wage Policy 224
Theories and Surveys for Wage and Salary Administration 225
Wage Fixing Institutions and Authorities 226
Concept of Rewards 226
Types of Incentive Plans 227
Short-Term Plans 227
Long-Term Plans 228
Non-Monetary Incentives 231
Guidelines for Effective Incentive Plans 232
Employee Benefits 232
Objectives of Employee Benefits 234
History and Evolution of Benefit Programs in India 235
Some Modern Concepts in Employee Benefit Schemes 237

13. OCCUPATIONAL SAFETY AND HEALTH 241
Causes of Safety and Health Problems at the Workplace 242
Lack of Education and Training 242
Human Errors 242
Technical Errors 243
Psychological Problems 243
Occupational Hazards and Risks 243
Provisions to Prevent Accidents in the WorkPlace 243
Safety and Health Programs in Organizations 245
Prerequisites for an Effective Safety and Health Policy 246
Accident Prevention in the Workplace 248
Stress and its Consequences on Employee Performance 252
Causes of Stress 252
Handling Employee Stress 253
Avoiding Burnout 254
Challenges in the Service Sector 254
Importance of Ergonomics 254
Part Four: Employee Relations
14. Grievance Handling 259
Concept of Grievance 260
Causes of Grievance 261
Need for a Grievance Redressal Procedure 261
Effective Grievance Redressal 262
Steps in a Grievance Redressal Procedure 262
Grievance Redressal Procedure in Unionized Organizations 264
Legislative Aspects of the Grievance Redressal Procedure in India 266
Conflict Resolution 267

15. Disciplinary Action 270
Definition and Concept of Discipline 271
Aims and Objectives of Discipline 271
Forms and Types of Discipline 272
Acts of Indiscipline or Misconduct 273
Causes of Indiscipline and Misconduct 275
Principles of Maintaining Discipline 275
McGregor’s Red Hot Stove Rule 276
Disciplinary Procedure 277
Approaches to Discipline 277
Incorrect Discipline 278
Preventive Discipline 278
Positive Discipline 279
Types of Disciplinary Action 281
Verbal Warning 281
Written Warning 282
Suspension 282
Pay Cut 282
Demotion 282
Dismissal 283
Code of Discipline in the Indian Industry 283
Industrial Employment (Standing Orders) Act, 1946 284

16. Trade Unions 286
Definition and Concept of Trade Unions 287
Trade Union Membership 287
Characteristics of Trade Unions 289
Functions of Trade Unions 290
Types of Trade Unions 292
Classification of Unions According to Purpose 293
Classification of Unions According to Membership Structure 294
Methods Adopted by Trade Unions 295
Mutual Insurance 295
Collective Bargaining 295
Legal Enactments 295
Other Methods 296
Problems Faced By Trade Unions 297
Uneven Growth of Unionism 297
Small Size of Unions 297
Financial Weakness 297
Multiplicity of Unions 298
Inter-union Rivalry 298
Leadership Issue 299
Politics and Unions 301
Trade Unions and Globalization 301

17. Industrial Relations, Collective Bargaining and Workers’ Participation in Management 304
Definition and Concept of Industrial Relations 305
Approaches to Industrial Relations 306
Psychological Approach to Industrial Relations 307
Sociological Approach to Industrial Relations 307
Human Relations Approach to Industrial Relations 307
Socio-Ethical Approach to Industrial Relations 308
Gandhian Approach to Industrial Relations 308
Systems Approach to Industrial Relations 308
Different Roles in Industrial Relations 309
Employees 309
Trade Unions 309
The Management 310
The Government 311
Objectives of Industrial Relations 311
Industrial Disputes Prevention Machinery 311
Concept of Collective Bargaining 313
Features of Collective Bargaining 314
Group Activity 314
Activity in Levels 314
Flexibility 314
Win-win Situation 314
Builds Relationships 314
An Art and a Science 314
Objectives of Collective Bargaining 315
Collective Bargaining Process 315
Preparation for Negotiation 316
Negotiation 317
Contract Administration 317
Concept of Workers’ Participation in Management 318
Purpose of Workers’ Participation 320
Workers’ Participation in India 320
Forms of Worker Participation in India 322
Works Committees 323
Joint Management Councils 323
Joint Councils 324
Unit Councils 324
Plant Councils 325
Shop Councils 325
Factors Contributing to the Limited Success of the Workers’ Participation Schemes in Management in India 326
Conditions Necessary for Effective Working of the Scheme 326

18. Quality of Work Life 329
Definition and Concept of Quality of Work Life 331
Methods to Improve QWL 336
Alternative Work Schedule (AWS) 337
Flexi place/Telecommuting 339
Part-time Employment 339
Job Enrichment 339
Job Rotation 339
Job Enlargement 339
Autonomous Work Groups/Self Managed Teams 339
Socio-technical Systems 339
Benefits of QWL Programs 340
Effective Implementation of QWL Programs 340

19. Quality Circles 342
Definition and Concept of Quality Circles 343
Objectives of Quality Circles 344
Development and Working of a Quality Circle 345
Problem-Solving Techniques in Quality Circles 348
Brainstorming Sessions 348
Cause-and-Effect or Fishbone Diagrams 348
Sampling and Charting Methods 348
Solving Issues in Implementing Quality Circles 348