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This document provides an overview of Human Resource Management (HRM), covering its evolution, core concepts, and processes including human resource planning, job analysis, recruitment, selection, training, and performance management. It emphasizes the importance of viewing employees as valuable assets and outlines various techniques and methods used in HRM practices. Key objectives include achieving organizational goals, enhancing employee well-being, and ensuring effective communication of HR policies.

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0% found this document useful (0 votes)
5 views32 pages

Notes

This document provides an overview of Human Resource Management (HRM), covering its evolution, core concepts, and processes including human resource planning, job analysis, recruitment, selection, training, and performance management. It emphasizes the importance of viewing employees as valuable assets and outlines various techniques and methods used in HRM practices. Key objectives include achieving organizational goals, enhancing employee well-being, and ensuring effective communication of HR policies.

Uploaded by

princegarg4936
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

UNIT 02:

Human Resource Management

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.

Commodity Concept Factor of Production


Labor as a bought and sold commodity. Labor as a production input like land or capital.

Goodwill Concept Paternalistic Concept


Welfare measures increase productivity. Management as protective, fatherly figures.

[Link]

BY: TUTELAGE ACADEMY


Evolution of HRM: Modern
Concepts
The understanding of human resources has progressed to recognize employees as
valuable assets and partners.

Humanitarian Concept
Meeting physical, social, and psychological needs improves productivity.

Human Resource Concept


Employees are the most valuable assets.

Emerging Concept
Employees as partners in company progress.
[Link]

BY: TUTELAGE ACADEMY


Scope and Objectives of HRM
HRM encompasses personal, welfare, and industrial aspects, aiming to achieve organizational goals and enhance employee well-being.

Scope of HRM Objectives of HRM

• 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.

[Link]

BY: TUTELAGE ACADEMY


Human Resource Planning (HRP)
HRP is a proactive process to ensure the right number of qualified people are in the right
jobs at the right time to meet organizational objectives.

Anticipate Needs
Forecast future HR requirements.

Cope with Change


Adapt to evolving organizational demands.

Productive Utilization
Maximize existing manpower potential.

Timely Promotions
Systematic advancement of competent employees.

[Link]

BY: TUTELAGE ACADEMY


Steps in Human Resource Planning:

1. Analyzing Organizational Objectives:


Understand the company’s goals and strategies.
2. Inventory of Present Human Resources:
Assess current workforce skills, qualifications, and positions.
3. Forecasting Demand for Human Resources:
Predict future HR needs based on business plans, retirements, expansions, etc.
4. Forecasting Supply of Human Resources:
Estimate internal and external availability of required talent.
5. Identifying HR Gaps:
Compare demand and supply to identify shortages or surpluses.
6. Action Plans:
Develop strategies for recruitment, training, redeployment, or downsizing.
7. Monitoring and Evaluation:
Regularly review and adjust plans as needed.

[Link]

BY: TUTELAGE ACADEMY


TECHNIQUES OF HRP:

Demand Forecasting Supply Forecasting


To ensure the organization has the right number of Supply forecasting in HRP is the process of estimating the
employees with the right skills at the right time. availability of qualified employees, both within and outside the
To support business growth, expansion, or changes in organization, to meet future needs.
strategy. Purpose:
Methods of Demand Forecasting: To identify if there will be a surplus or shortage of employees.
Managerial Judgment: Managers estimate future staffing To plan for recruitment, training, or redeployment.
needs based on experience. Methods of Supply Forecasting:
Workload Analysis: Calculating staff needs based on Internal Supply Analysis:
expected output or workload. 1. Markov Analysis
Trend Analysis: Using historical data to predict future 2. Simulation
needs. 3. Goal Programming
Delphi Technique: Collecting expert opinions to reach a External Supply Analysis:
consensus. 1. Labor market analysis
Statistical Models: Using mathematical models and 2. Demographic studies
software for predictions. 3. Educational output statistics

[Link]

BY: TUTELAGE ACADEMY


Job Analysis: Understanding the Role
Job analysis systematically investigates tasks, duties, and responsibilities to define what a job entails and what is required to perform
it. Steps of Job Analysis are as follows:

01 02 03

Organizational Analysis Select Representative Jobs Collect Data


Obtain overall picture of the organization. Choose a sample for detailed analysis. Gather information about the selected
jobs.

04 05

Prepare Job Description Prepare Job Specifications


Written statement of job contents. Human characteristics needed for the job.

[Link]

BY: TUTELAGE ACADEMY


METHODS OF JOB ANALYSIS:

QUALITATIVE METHODS: QUANTITATIVE METHODS:


Interviews: Questionnaires and Surveys:
Involve structured or unstructured conversations with job Use structured questionnaires with closed-ended questions to
incumbents, supervisors, or subject matter experts to collect standardized data about job tasks, required skills, and
gather detailed information about job tasks, required work environment characteristics.
skills, and work environment. Position Analysis Questionnaire (PAQ):
A standardized instrument with 194 items grouped into 6 sections
Observations: covering various job elements, used to assess jobs based on
Directly observing employees performing their job tasks worker-oriented characteristics.
to gather firsthand information about work activities, Management Position Description Questionnaire (MPDQ):
processes, and required behaviors. A questionnaire with 274 items with 15 sections,used to describe
and analyze managerial positions.
Critical Incident Technique: Functional Job Analysis (FJA):
Focuses on identifying critical behaviors or actions that Focuses on describing job functions in terms of worker
lead to successful or unsuccessful job performance. interactions with data, people, and things. Given by Sidnry
Sending out questionnaires,log records,etc also helps Fine,helps in understanding the complexities of duties and
here. responsiblities

[Link]

BY: TUTELAGE ACADEMY


Job Description is a comprehensive document that outlines the specific duties,
JOB DESCRIPTION: responsibilities, and requirements associated with a particular job or position within an
organization. It serves as a critical tool for both employees and employers, providing
clarity about job roles and expectations
Importance of Job Descriptions
Components of a Job Description: Clarity of Roles: They provide clarity to
: employees about their specific roles and
Job Title: The official title of the position, which reflects responsibilities, reducing confusion
its rank and role within the organization. Recruitment and Selection: Job descriptions are
Job Summary: A brief overview of the job, summarizing essential for recruiting and selecting candidates
its primary purpose and key functions. Training and Development: They form the basis
Duties and Responsibilities: A detailed list of the tasks, for designing training and development
duties, and responsibilities that the employee is programs tailored to the requirements
expected to perform in the role. Performance Management: Job descriptions
Reporting Relationship: Information about the help in setting performance expectations,
position's place in the organizational hierarchy, conducting performance appraisals, and
Qualifications: The specific qualifications, skills, evaluating employee performance.
education, and experience required for the job, Manpower Planning: They assist in workforce
including any certifications or licenses. planning by identifying gaps in skills and
Physical Requirements: Details about any physical positions that need to be filled.
demands of the job, such as lifting, standing, or Legal Compliance: Accurate job descriptions
operating machinery. help organizations ensure compliance with labor
Working Conditions: Information about the work laws and regulations by clearly defining job
environment, including factors like noise levels, requirements.
exposure to hazardous materials Employee Engagement: Employees are more
Salary and Benefits: Some job descriptions may include engaged when they understand their roles and
information about salary range, benefits, or other how they contribute
compensation details. Conflict Resolution:. [Link]

BY: TUTELAGE ACADEMY


Recruitment: Finding Talent
Recruitment is the process of searching for potential candidates to fill
organizational vacancies, drawing from internal and external sources.

Internal Sources External Sources

• Promotions & Transfers • Other organizations


• Retrenched & Retired • Employment Exchanges
Employees • Educational Institutes
• Dependants of deceased • Referrals, Advertisements, Walk-
employees ins
• Search firms, Contractors

[Link]

BY: TUTELAGE ACADEMY


Selection: Choosing the Right Fit
Selection is the process of choosing individuals with relevant qualifications from a pool of candidates to successfully perform the job.

Application & Screening Selection Tests


Receipt and initial review of applications. Intelligence, aptitude, personality, and achievement tests.

Interviews Checks & Decision


In-depth discussions with candidates. Medical exams, reference checks, final decision.

[Link]

BY: TUTELAGE ACADEMY


[Link]

BY: TUTELAGE ACADEMY


Placement & Induction:
Integrating New Talent
Placement is assigning an employee to a specific job, while induction
introduces them to the organization's policies and culture.

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]

BY: TUTELAGE ACADEMY


guidance to the new recruits.
Training & Development:
Enhancing Capabilities
Training increases specific skills and knowledge for job performance, while
development focuses on broader personal and professional growth.

Areas of Training Training Methods

• Knowledge (rules, products) • On-the-Job: JIT, Coaching,


• Technical Skills (specific job Mentoring, Job Rotation.
tasks) • Off-the-Job: Vestibule, Role
• Social Skills (attitude, behavior) Playing, Lectures, E-learning.

• Techniques (application of
knowledge)
[Link]

BY: TUTELAGE ACADEMY


On the Job Training:
Training conducted on employee’s actual work place. Its types are as below:

• 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.

[Link]

BY: TUTELAGE ACADEMY


Off the job Training methods:

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]

BY: TUTELAGE ACADEMY


TRAINING EVALUATION METHODS:

[Link]

BY: TUTELAGE ACADEMY


[Link]

BY: TUTELAGE ACADEMY


PERFORMANCE MANAGEMENT & POTENTIAL APPRAISAL
Performance Appraisal- It the process through which employee’s capabilities and potential are analysed, which allows the
informed decision for particular purpose.

"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:

• To make employees aware of their performance and shortcomings.


• Compensation Decision
• Promotion Decision
• Training & Development programme
• Personal Development
• Feedback

[Link]

BY: TUTELAGE ACADEMY


Process of Performance Appraisal

• Setting of work standards.


• Assessment of employee's actual performance relative to standards.
• Offering feedback to employees so that he can eliminate deficiencies and improve performance.

Evaluation of what?

• Individual task outcomes- Focus is on the results of work behaviour.



• Behaviour- Focus is on the behaviour exhibited by the employee while doing the job.

• Competencies/ Traits- Focus is on the employee’s personal characteristics such as ability to make logical decision,
communication skills, etc.

Who will Evaluate?

• Supervisor
• Peer Group
• Subordinates
• Self-Appraisal

[Link]

BY: TUTELAGE ACADEMY


Methods of Performance Appraisal:

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

Confidential Report Assessment centre Method

Essay Method Human Resource Accounting Method

Straight ranking method Behaviourally Anchored rating scale (BARS)

Paired comparison method Management by objectives

Forced Distribution Method 360 degree Appraisal

Graphic Rating Scale Method

Checklist method

Critical Incidents method

Group Appraisal Method

Field Review Method


[Link]

BY: TUTELAGE ACADEMY


Traditional Methods

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]

BY: TUTELAGE ACADEMY


Modern Methods

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.
[Link]

BY: TUTELAGE ACADEMY


Problems with the Performance Appraisal

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.

Techniques of potential appraisal:


• Self – appraisals
• Peer appraisals
• Superior appraisals
• MBO
• Psychological and psychometric tests
• Management games like role playing
• Leadership exercises etc.

[Link]

BY: TUTELAGE ACADEMY


Job Evaluation- It is a systematic way of determining the value/worth of a job in relation to other jobs in an organization.
ILO - Job evaluation is an attempt to determine and compare methods which the normal performance of a particular job
makes on normal workers without considering the individual performance of the worker concerned.
Process of Job Evaluation
• Gaining Acceptance
• Creating Job Evaluation Committee
• Finding the jobs to be evaluated
• Analysis and preparation of Job Description
• Selection of method of evaluation
• Classification of jobs.
• Installing the programme
• Periodic Review

METHODS OF JOB EVALUATION:

[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.

Advantages of Job Evaluation


Limitations of Job Evaluation
To maintain Equity and equality in the pay
structure.
The factor taken by the programme are not
To help in the selection of candidates.
exhaustive.
To maintain proper balance between
Most of the technique is difficult to understand,
specialized jobs and salaries.
even for supervisors.
Harmonious relations between employers
and employees
[Link]

BY: TUTELAGE ACADEMY


MANAGING CAREER:

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 Paths - Flexible lines of progression through which employee move.

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 Progression – Making progress in one’s career through right moves.

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.

Plateauing- A condition of stagnation in one’s current job. [Link]

BY: TUTELAGE ACADEMY


Career Stages
Process of Career Planning
Exploration: This is the career stage which usually ends in one’s mid-twenties as
one move from college to work. In this stage the exploration is done by the Identifying individual needs and aspirations: HR department
individual after 10th and he has lots of self-exploration perform this process and analyse the hopes and aspirations of
the different categories of employees. It is done through the HR
Establishment: Also called as Initial stage. inventory which keeps the record of employees age,
• begins when exploration stage ends and the individual starts working on his qualification, experience and aptitude of the employees.
first job.
• includes the first experiences on the job, peer group evaluations, tensions, Finding career opportunities: the career paths are looked for in
anxieties the organisation itself, in the future plans and career system of
• have more chance of making mistakes and learning from those mistakes. the employees. Career paths show career progression
possibilities clearly.
Mid-career: This stage is also called as Growth stage. This stage is between age
35 to 50 yrs. Identifying perfect co-relation: Perfect co-relation between the
People work very hard to climb the ladder of success very fast. individual’s aspiration and the organisation career system is to
every individual is quite clear above his /her goals and strive hard to achieve it. be developed.

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.

Methods of Wage Payment


Time wage:
It relates to the hours the employee is at work, regardless of the output.
The basis of this time wage system may be hour, day, week or month.
The workers feel secure, confident and assured of being paid
Piece Rate:
It is related to the production / output, regardless of time taken for production.
Under this, the workers are paid at a stipulated rate per piece or unit of output.
Efficient workers get an opportunity to showcase their talents and earn more.
Guaranteed time rates:
In this system, the payment is based on the time rates. There is a provision of merit award for personal qualities, skill, ability and punctuality etc. In
this system the employer compensates the high labour cost by increasing the price of the products. [Link]

BY: TUTELAGE ACADEMY


Fringe Benefits

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

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