Notes
Notes
Important notes
This presentation explores the core concepts, processes, and evolving trends in
Human Resource Management, from foundational principles to contemporary
challenges and strategies.
By:
Tutelage Academy [Link]
Conceptual Framework of HRM
HRM is the process of bringing people and organizations together to effectively meet mutual goals. Its evolution reflects changing perceptions of
labor.
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Humanitarian Concept
Meeting physical, social, and psychological needs improves productivity.
Emerging Concept
Employees as partners in company progress.
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• Personal Aspect: Manpower planning, recruitment, training, • Maintain quality of work life.
remuneration. • Achieve organizational goals.
• Welfare Aspect: Working conditions, facilities (canteens, • Efficient utilization of skills.
crèches, medical aid).
• Employee job satisfaction.
• Industrial Aspect: Union-management relations, collective
• Effective HR policy communication.
bargaining, dispute settlement.
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Anticipate Needs
Forecast future HR requirements.
Productive Utilization
Maximize existing manpower potential.
Timely Promotions
Systematic advancement of competent employees.
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04 05
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Objectives of induction
• Removes fear of the new recruits to an
organisation.
Benefits of Proper • Gets adjust and adopt to a new organisation.
Placement • Acts as a valuable source of information.
• • .
• Easy integration with Induction Programme Steps
1. Content- It is all about the course and topics to be
colleagues.
covered in the induction programme such as
• Reduced mistakes and organisation issue, employee benefits etc.
improved learning. 2.
3. Socialisation- It is the process by which new
• Better job performance and employees to the organisation begin to understand
productivity. and accept the values, norms.
4.
5. Follow up- Follow up meetings on daily basis are
conducted by supervisor face to face to give [Link]
• Techniques (application of
knowledge)
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• JIT- It is used to teach workers how to perform their present jobs. It is a four-step
process i.e. Preparation, Demonstration, performance, follow up.
• Coaching- It is an informal unplanned training and development activities provided
by supervisors and peers. It is kind of daily training.
• Mentoring- In a Mentoring method, the supervisor who acts as teacher counsellor,
developer of skills, host, guide assumes the responsibility of guiding the trainees at
every step.
•
• Job Rotation- In this method, the trainees are moved from one job to another. It
develops the general understanding that how the organisations work.
•
• Apprenticeship Training- The apprentices are trainees who spend a prescribed
amount of time working with experienced guide, coach or trainer.
•
• Committee Assignments- Trainees are asked to solve an actual organisational
problem. They work in group and solve the assignment given to them. It develops
the team spirit towards common goals.
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1. Classroom-based training: This involves learning in a structured environment, often through lectures,
discussions, and group activities.
•Lectures: Experienced professionals share knowledge and insights on specific topics.
•Seminars: Similar to lectures, but often involve smaller groups and more interactive discussions.
•Workshops: Hands-on, practical sessions focused on developing specific skills.
2. E-learning and online courses: This allows for flexible learning through online platforms, virtual classrooms,
and self-paced modules.
•Online courses: Structured programs delivered through online platforms, often with assessments.
•Webinars: Online presentations or workshops delivered to a remote audience.
3. Conferences and industry events: These events offer opportunities to learn about the latest trends, network
with peers, and gain new knowledge.
4. Simulations: Trainees practice skills in a simulated environment that mimics the real workplace, allowing for
hands-on experience without real-world consequences.
•Vestibule training: A type of simulation that uses equipment and conditions similar to the actual workplace.
5. Case studies: Analyzing real-world scenarios to develop problem-solving and decision-making skills.
6. Role-playing: Practicing specific skills by acting out scenarios with other trainees.
7. Business games: Simulating business situations to improve decision-making and strategic thinking.
8. Industry visits: Experiencing the work environment firsthand and learning from professionals in the field. [Link]
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"Performance appraisal is the systematic, periodic and an impartial rating of an employee's excellence in matters pertaining
to his present job and his potential for a better job". Flippo
Objectives:
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Evaluation of what?
• Supervisor
• Peer Group
• Subordinates
• Self-Appraisal
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Traditional methods often rely on subjective assessments of personality traits and past performance,
while modern methods emphasize objective goal achievement, future potential, and ongoing
development. Modern methods also leverage technology and data analysis for more comprehensive
and timely feedback.
Traditional Methods Modern Methods
Checklist method
Confidential Report: It is an individual evaluation method. In this method report is prepared by boss confidentially. It analyses the strength, weakness, achievements,
failures, personality and behaviour of the employee. Employee do not get the feedback about his performance and thus he does not get any opportunity to understand
or realise his weakness.
Essay Method: It is also an individual evaluation method. The evaluator writes essay on the basis of overall impression..
Graphic Rating Scale Method: It is individual evaluation method. In this method the numerical scales showing the degrees of Particular traits are used. The printed
format is given to the evaluator.
Checklist method: In this method, the list of statements that describes traits and performances are of employees are prepared. Then the employee is checked whether
the behaviour of employee is positive or negative to each statement. It is also an individual evaluation method.
Critical Incidents method: It is individual evaluation. Here, immediate boss keeps the written record of critical events and the employees behaviour during that event.
Straight ranking method: It is a Multi-person evaluation method. In this method ranking is given to the employees based on their performance in the same work doing
the same job. The evaluator set the range from extra ordinary performer to poor performer and the employees are fit into this based on their performance.
Paired comparison method: It fall in a Multi-Person Evaluation method. In this method each employee is compared with all others in pairs one at a time. The no. of
times employee is judged better than other determines his rank. It is subjective but reliable method., it is difficult to handle when the no. of employees is very large.
Formula used here is n (n-1) where n is the no. of persons to be compared.
2
Forced Distribution Method: In this method employees are rated in the form of normal frequency distribution method. Employees are placed in the category but not
ranked within the category.
Group Appraisal Method: In this method, an employee is assessed by group of appraisers. The appraisers consist of immediate supervisors, other supervisors having
close contact with employee’s work, manager, HOD etc.
Field Review Method: In this method, the trained, skilled representative of the HR department takes part and assist the line supervisors with their
ratings of their respective subordinates. The HR officer requests supervisor specific information about the subordinate’s performance. [Link]
Assessment centre Method: This technique uses methods such as in- basket, role playing, case studies, simulation exercises etc. The employees from various
divisions are brought together to spend two or three days working on the same assignment similar to the work they would be handling when promoted.
Experienced managers are appointed as evaluators. It they offer an excellent means to for conducting evaluation process in objective way.
Human Resource Accounting Method: In this method, performance is judged in terms of the worth of the employee i.e. the money being spent on the employee
such as expenditure incurred on HRP, recruitment, Selection, training and the contribution given by the employee. The difference between the cost and the
contribution will reflect the performance of the employees.
Behaviourally Anchored rating scale (BARS): This method is a combination of Graphic rating scale method and critical incidents techniques of employee
performance evaluation. The steps are:
1. Collect Critical incidents.
2. Identify performance dimensions.
3. Reclassification of incidents.
4. Assigning scale values to the incidents.
5. Producing the final instruments.
Management by objectives (MBO): Peter Drucker in the year 1954, developed the concept of MBO. MBO requires the management to set specific, measurable
goals with each employee and then periodically discusses the progress towards these goals. It has six steps:
1. Set the organisational goals.
2. Set the departmental goals.
3. Discuss departmental goals.
4. Define Expected results.
5. Performance review.
6. Provide feedback.
360-degree Appraisal: This appraisal method collects the performance information of the manager from multiple parties such as one’s subordinates’ peers,
supervisors, customers etc. This is found to be most objective and transparent and participative as structured questionnaires are used to collect responses about a
manager from his peers, bosses and subordinates. The responses and comments given by all are collected in the form of graph and charts.
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Judgement Error: People commit mistakes while evaluating people and their
performances. The judgement error types are:
First impression: The candidates first impression on an appraiser may colour his
evaluation of all subsequent behaviour.
Halo: It occurs when one aspect of the subordinate’s behaviour / performance
affects the rater’s evaluation of other performance dimension.
Horn effect: In this one negative quality of the employee is being rated very
harshly.
Leniency: Depending upon the mood of the rater at the time of evaluation,
raters may rate the employee very strictly or very leniently.
Central tendency: Alternative to the leniency affect is a central tendency which
occurs when the rater rates all employees as average performers to avoid
criticism.
Stereotyping: Ratings given on the Generalising behaviour based on religion,
caste, sex, age which underestimates or overestimates the employee’s
performance.
Recency effect: In this effect, the rater gives greater weightage to recent
occurrences than the earlier performances.
Alternative is spill over effect where the past performances affect the present
ratings.
[Link]
BY: TUTELAGE
ACADEMY
Potential appraisal
Potential appraisal in Human Resource Management (HRM) is a forward-looking process focused on identifying and
evaluating an employee's future capabilities and potential for growth within the organization, particularly for
higher-level roles and leadership positions. It differs from performance appraisal, which assesses past and present
performance, by focusing on what an employee could achieve in the future.
[Link]
[Link] Method: It is the simplest method. In this, jobs are arranged in order of their
value to the organisation from highest to lowest. Jobs are Examined as a whole rather than
the Individual factors in the job. Each member evaluates the job independently either in
comparison to the other job or set standards.
[Link] Method: In this method, jobs are categorised and grades are given by the job
evaluation committee. The job grades are provided in either of the way:
All the jobs are ranked and their obvious classes may be determined.
Firstly, a series of Job class description is prepared by job evaluation committee and on basis
of which jobs may be graded.
After this the different characteristics of each job is matched with the description of job class [Link]
and is placed in the class which matches it best. BY: TUTELAGE ACADEMY
[Link] Method: Here Jobs are expressed in key factors. Points are assigned to each factor after writing down in the order of
importance. The total of the points determined the wage rate of the job. Procedure is given below:
• Select key job.
• Divide each major factors into sub factors.
• Find the maximum no. of points assigned to each job. This would help in finding relative worth of the job.
Once the worth of the job in terms of point value is decided, the points are converted into money values.
[Link] Comparison Method: This method was developed by Eugene J benge in 1926 to overcome the demerits of point method. In
this method,
15-20 key jobs from various departments are selected at initial stage. These key jobs should represent all the levels of wages & salaries.
The five factors such as mental effort, skill, physical effort, responsibility and working conditions are to be compared with the same
factor of key jobs and ranking is given to each factor.
All the ranks obtained by different factors of a job are total to determine the relative worth of the job.
Career- It may be defined as all the positions occupied by a person during his working life.
Career Management
• continuing process of setting career goals, formulating and implementing strategies for reaching the goals and monitoring the results.
• includes both organisational actions as well as individual efforts.
Terms
Career Goals - Future positions one tries to reach as part of a career.
Career Anchors – The distinct patterns of self-perceived talents, attitudes, motives, and values that guide and stabilise a person’s career
after several years of experience and feedback.
Career Development – The personal actions one undertakes to achieve a career plan.
Career Counselling – The process of advising employees on setting goals and assisting them in finding career paths.
Reality shock- A period that may occur at the initial stage of career when the employee’s high job expectation confronts the reality of a
boring unchallenging job.
Late Career: It is the mature stage. This is the stage where one relaxes and Framing and executing strategies: In case of perfect matching
enjoys the ripened fruit as a result of his hard work during the upper three there is no problem and the action is taken easily but when
stages. People valued one’s varied experience and judgement. On the contrary there is mismatch then the alternative strategies are formulated
one who could not reach the level they deserved, feel stagnated and start and implemented.
realising that they cannot change the world.
Reviewing career plansThis will help the employee know in
Decline: It is the stage of retirement, when organisation give the indication that which direction he is moving and what changes are likely to
one’s services are not at all required in the organisation. take place, what kind of skills are needed to face new and
emerging organisational challenges.
BY: TUTELAGE ACADEMY
Pay for performance system
Merit pay: In this approach, there is an increase in the base pay, based on the supervisory rating of employee’s performance. It is normally granted
once in a year.
Variable pay: Variable pay includes cash incentives and bonuses granted to high performers based on their extraordinary contributions to the
organizations.
Skill based pay: In this reward plan, the employees get pay on the basis of their work related skills that they possess. The employee would get the
same pay regardless of the different types of jobs he may handle during the year.
Competency based pay: It can be defined as paying for the development and application of essential skills, behavior and actions which support high
level of individual, team and organizational performances.
The types of competencies are:
Organisational competencies: The unique factors which make the organization competitive.
Job related competencies: Competencies that are required to carry out the assignment in an effective way.
Personal competencies: The basic behavioral competencies in addition to job related skills and knowledge.
Extra Benefits provided to the employees in addition to the normal compensation paid in the form
of wage or salary.
The main objective of fringe benefits is to create the sense of belongingness among the
employees and to retain the talents.
[Link]
BY: TUTELAGE
ACADEMY