Pages: 61

No chapter abstract available.

Pages: 32

The chapter starts explaining the basics of personnel management, like the concept, origin, definition, etc., followed by discussion on difference between the terms, viz. HRM, human capital management, human resource development and strategic human resource management. Thereafter, the chapter deals with the changing environment of HRM followed by a discussion on various challenges being faced by HRM, like environmental challenges, individual challenges, organisational challenges, etc. Thereafter, it explains the changing roles of HR managers, followed by a brief discussion on various models of HRM, like Michigan/matching model, guest model, John Story model, contextual model, ARD model, integration-development model, etc. Towards the end, the chapter explains the development of personnel/HR management in India in a chronological order—the institution of the labour officer (which was based on the recommendations of the Royal Commission on Labour 1929–1931); the Bombay Disputes Act, 1934; the Bombay Textile Labour Enquiry Committee, 1940; the roles played by the Indian Jute Mills Association, the Indian Tea Association, the Chamber of Commerce, the Bombay Mill Owners Association, the Labour Investigation Committee, etc., resulting in the enactment of several acts, emergence of many diploma/degree programmes for labour officers by several institutes/universities after 1948, etc. It was in 1951 that a chemical organisation in Bombay appointed a personnel officer, followed by many other organisations, like DCM, Hindustan Liver Ltd, Bata Shoe Co., IFC, BHEL, HMT, etc. With the passage of time, the labour and trade union movements got strengthened, and therefore, the personnel departments in several organisations started interfering in industrial relations and HR issues. Of late, the role of HR managers has become very demanding and the future of HRM is likely to be very challenging and thereby requiring highly trained professionals to deal with the ever-increasing complexities and formulating appropriate strategies by the employers.

Pages: 27

The chapter spells out the importance, nature, scope, objectives, principles and functions of HRM and deals with HR policy also while pointing out that HRM plays a very significant role in recruiting, training, developing, compensating and motivating the workforce of an organisation besides managing changes, facing challenges and helping an organisation in accomplishing its goals. While throwing light on the nature of HRM, it is pointed out that HR administration is a line responsibility and a staff function. Coming to the scope of HRM, it is pointed out that the functions of acquiring, developing, compensating, integrating and maintaining of workforce and taking care of the well-being of the society constitute the scope of HRM. As far as the objectives of HRM are concerned, the same is categorised under two heads, primary objectives and secondary objectives, which are explained in detail. Then after explaining the principles of HRM, the functions of HRM are discussed under two heads: (a) managerial functions, which comprise planning, organising, directing, etc., and (b) operative functions, which include procurement, development, compensation, integration and maintenance of workforce. As far as HR policy is concerned, after discussing its meaning, nature, justification and formulation, various types of HR policies are explained. The other relevant aspects of HR policies, like their characteristics, contents, implementation, control, etc., are also discussed in detail.

Pages: 121

No chapter abstract available.

Pages: 44

The chapter deals with the HR planning (HRP), job analysis and design, recruitment, selection, placement and induction/socialisation. After explaining the meaning, need and linkage of the HR plan with the corporate plan, the forms of HR planning—short-term plan and long-term plan—are discussed in detail, followed by a brief discussion on objectives of HRP. Then follows a discussion on business plan, forecasting of future HR requirements, techniques of forecasting demand for employees (both quantitative and qualitative), factors in HR demand forecasting, workforce analysis, and workload analysis. Forecasting of supply of human resources (both interna and external candidates) are also discussed at length. Various aspects of strategic human resource planning (SHRP) are also discussed in addition to a brief discussion on macro and micro perspectives of HRP. The next issue discussed includes emerging trends/recent happenings/developments and projections in HRP and current practices being followed in Indian organisations. In the end, the problem of labour turnover has been discussed, which includes causes of high rate of labour turnover, measurement of turnover, significance of turnover rate, followed by a brief discussion on models of HRM strategies as well as HRM strategies regarding HRP.

Pages: 24

The chapter deals with the two very important issues related to HRM: job analysis and job design. While job analysis is the process of studying and collecting information relating to the operations and responsibilities of a specific job, the various sources of job information, especially the quantitative techniques, are discussed, followed by a discussion on the process of job analysis, including its two wings: job description and job specification. While discussion on job description includes its definition, contents, characteristics of good job description, guidelines for writing a good job description, advantages of job description, etc., the discussion on job specification deals with its meaning, definition and other related aspects. As far as job design is concerned, it is defined as the process of organising work into tasks required to perform a specific job. The various approaches to job design, like perceptual approach, perceptional-motor approach, biological approach, scientific management and machinistic approach, and motivational approach, are discussed at length, followed by some other related issues, such as work-family balance. In the end, there is a discussion on management’s HRM strategy regarding job analysis and job design.

Pages: 51

The chapter covers discussion on recruitment, selection, placement and induction/socialisation. While stating that the recruitment is positive in nature as it is a process of searching for prospective employees and stimulating them to apply for jobs in the organisation, the discussion explains the functions of the employment department, difference between centralised and decentralised recruitment, factors affecting the HR process, policy of recruitment and sources of HR supply including both the internal and external sources, followed by a brief discussion on employee value proposition. Besides, both direct and indirect methods of recruitment, in addition to third party method, are also discussed. Besides discussing the various recruitment practices in Indian industries, some other issues related to recruitment are also discussed. As far as selection is concerned, it has been pointed that it is the process by which all candidates are divided into two categories: those selected and those rejected. Having discussed pseudoscientific methods of selection, the need for scientific methods of selection has been highlighted besides pointing out the factors influencing selection. The various stages in the selection procedure, like initial contact, screening application blank, reference checks, various types of psychological tests, employment interviews, approval by supervisor, physical examination, etc., are discussed. Uses of tools, competency-based selection assessment centres are also discussed. Induction/orientation, which is a process of receiving, welcoming and orienting a newly recruited person and is a short-term programme, and socialisation, which is a long-term process and enables a new employee to acclimatize himself to the new organisation, are discussed in detail.

Pages: 76

No chapter abstract available.

Pages: 39

This chapter deals with the training function of HRM. Training is beneficial to both the employees and the organisation concerned. Training methods which comprise both on-the-job methods, like on specific job, position rotation, special projects, selective reading, apprenticeship, vestibule schools, multiple management and so on, and off-the job methods, like special courses and lectures, conferences, case studies, brain storming, laboratory methods, EPSS, tele-training, videoconferencing, MP3/instant messaging, slides and videotapes, programmed learning, audiovisual-based training, learning portals, e-learning, monitoring, informal learning, internet-based training and so on, are discussed in detail. Besides, there is a long discussion on the contents of a training programme, process of training and challenges in training. It has been pointed out that training is a multi-step process and there are certain essentials to make a training programme a success. A training programme should be relevant to the strategic goals of the organisation. It has also been pointed out that training practices in India differ from industry to industry and from organisation to organisation and so on. In the end, it has been mentioned that there is a marked shortage of training facilities in Indian organisations and further that training facilities are relatively are more for administrative and managerial personnel as compared to others. It has, therefore, been well advised that every organisation should formulate an appropriate strategy for imparting training to its employees.

Pages: 35

This chapter deals with executive development and training and with managing careers, promotions and transfers. Having stated that while an executive development programme is an ongoing process and aims at improving managerial performance by imparting knowledge, increasing skills and changing attitude, it has been mentioned that an executive development programme should be framed in a way that it develops the desired knowledge and skills of the executives following the principles of executive development. Various types of needs, like decision-making skills, interpersonal skills, job knowledge, organisational knowledge, general knowledge and special individual needs and various methods of executive development through which such needs can be met have also been discussed. The process of executive development too has been discussed in detail, followed by steps undertaken for execute development in India. Thereafter, having defined career development, there is a discussion on the five stages of career development, and it has pointed out that in order to meet their career growth, the managers should undertake career planning. Promotion/advancement, which involves a change to a higher job accompanied by a higher status and usually increased salary, additional perks, etc., should be based on a well-laid-out promotion policy attaching due weightage to merit and seniority of the executive. Transfers, which may also be helpful in filling some vacancies and meeting the personal requirements of the executives and the organisations concerned, are discussed.

Pages: 168

No chapter abstract available.

Pages: 37

Performance appraisal (PA) is a systematic, a periodic and, as far as humanly possible, an impartial rating of an employ’s excellence in matters pertaining to his present job and potentialities for a better job. How PA is useful for all the stakeholders has also been explained. The process of PA includes three main steps: defining the job, appraising performance, and providing feedback. Hence, an organisation should establish an appropriate evaluation criterion. The four main types of performance interview are unsatisfactory–uncorrectable, unsatisfactory–correctable, satisfactory–not promotable, and satisfactory–promotable. The PA methods/evaluation techniques can be grouped under three heads: (a) casual, unsystematic and often haphazard appraisal, (b) traditional and highly systematic appraisal and (d) modern methods. All these have been explained in detail. The characteristics of an effective PA programme have also been dealt with. The main barriers in the way of PA systems are faulty assumptions, psychological blocks, and technical pitfalls. However, with all its constraints, PA cannot be done away with. Similarly, potential appraisal is also very important because people are like icebergs. What we see above the surface, is only a small part. A large part of potential of an employee needed for excellent performance in a future job is usually not immediately visible. It is hidden below the surface which needs to be uncovered and traced. The four main methods of potential appraisal—Philips hi–lo matrix, Philips NV Holland model, psychometric tests and review appraisal—are also explained.

Pages: 34

Since it is essential for an organisation to work out an appropriate salary structure, have salary progression system, administer and control salary, and design and operate other allowances justifiably, there is a need of wage and salary (W&S) administration, which constitutes the subject matter of the present chapter. The main objectives of employee compensation are to attract, motivate and retain competent employees. The factors affecting employee compensation, like demand for and supply of labour, productivity, trade unions, collective bargaining, company’s and government’s wage policies, government’s wage legislation employee compensation, are also discussed. The main components of employee compensations are also explained. There needs to be an appropriate employee compensation policy and both internal and external equities in compensation should be maintained. The concept of wage and all the main theories of wages are explained in detail. The main problems in India, which include the large size of the unorganised sector, ignorance, weak trade unionism, nuclear family system, exploitation of workers by employers, inadequate support from the government, etc., are also explained. The various types of incentive plans which are in the interest of all the stakeholders are also explained. The prerequisites for a successful incentive plan are also dealt with. Profit-sharing, stock option to employees and supplementary compensation have also been explained. Various wage differentials have also been discussed in detail.

Pages: 33

It is always desirable to have an idea about the current practices regarding wage fixation in Indian organisations because in case wages are not fixed appropriately, workers are likely to suffer not only economically but also emotionally, socially and psychologically. Hence, this chapter deals with wage determination in Indian organisations. As far as wage fixation in the ‘organised sectors’ is concerned, it is done unilaterally usually by employers through the process of job evaluation and job pricing. Both the methods of job evaluation, non-analytical and analytical, are discussed. Various methods of job pricing too are explained. In the ‘unorganised sector’ also, wage fixation is done by the employers unilaterally (as trade unions are usually missing), which is generally on the lower side. Bipartite wage fixation is common in a good number of organisations and is done through the process of collective bargaining whereas tripartite wage fixation is prevalent in industries where ‘wage boards’ are constituted. Statutory wage/salary fixation is implemented through ‘legislative steps’ and by constituting pay commissions. Third-party wage fixation involves the role of ‘adjudication’ and ‘arbitration’ machinery. The base pay, fixed through job evaluation and so on, is also supplemented through contingency pay—i.e. paying for performance, competence, skills, etc. It has been suggested that keeping in view the sensitive nature of wage fixation, the management should formulate such a strategy in this regard as may protect not only its own interests but also those of the workers and the community.

Pages: 29

Since employee benefits and services constitute a significant part of total compensation, the present chapter defines the concept, philosophy, definition, objectives, and fringe benefits, in detail. Besides, intangible benefits, factors responsible for the need and growth of benefits, benefits policies and practices, planning, designing and administering fringe benefits, current approaches, factors influencing the choice of the benefit packages, previewing and modifying benefit package, factors affecting fringe benefits and services, coverage and classification and types of fringe benefits, etc., are discussed at length. This is followed by a lengthy discussion on fringe benefits and current practices (Part 2), which are divided into three categories: social security, labour welfare and bonus. While this chapter takes care of social security, the remaining two constituents, labour welfare and ‘bonus, are dealt with in Chapter 12. Coming to social security, first of all, the term is differentiated from social insurance and social assistance, and then the forms of social security, its scope, social security in India—the present status in Indian industries which deals with various acts passed by the government, recent and other developments, and recent biggest labour reforms since 2014 and onwards, including various labour codes passed by the Government of India and expansion activities as also management strategy—are discussed.

Pages: 33

While the first category of fringe benefits, social security, has already been taken care of in Chapter 11, the remaining two categories, labour welfare and bonus, are dealt with in the present chapter, which also contains discussions on internal audit of compensation and benefits towards the end. Coming to the second category of fringe benefits, labour welfare, first, its meaning and definition, objectives, significance, principles, etc., are discussed. Labour welfare work is divided into three categories: (a) statutory welfare, which is mandatorily to be undertaken by organisations because of various directives and acts passed by the central and state governments; (b) mutual labour welfare work, which is taken care of by trade unions of workers; and (c) voluntary labour work, which is undertaken by employers at their own without any compulsion by the government. A detailed discussion on labour welfare work undertaken by various Indian organisations is found in the chapter. Thereafter, recent trends/developments regarding labour welfare work, with lots of examples, are discussed. The third category of fringe benefits, bonus, is dealt with in the context of the Payment of Bonus Act, 1965. The last part of the chapter discusses the internal audit of compensation and benefits. After explaining the planning and definition of auditing, what is done in internal auditing and why internal auditing of compensation and auditing processes is done are discussed. Compensation and benefits structure and the internal audit tasks involved, methods of conducting the audit, risks involved in compensation and benefits of internal auditing, etc., are discussed. The chapter ends with the drafting of management strategy in this regard.

Pages: 127

No chapter abstract available.

Pages: 33

Motivation refers to the way in which urges, drives, aspirations, strivings or needs, direct, control or explain the behaviour of human beings. Motivation is an inner impulse, causing a person to action. Motivated employees produce more, their rates of absenteeism and turnover remain low, and they are always willing to adapt. Motivation is, therefore, the central task of management. The main steps in the process of motivation include sizing up, preparing a set of motivating tools, selecting and applying motivational plans, and feedback. Motivation may be positive or negative, extrinsic or intrinsic, and financial or non-financial. Motivation is, however, a psychological and social problem. Techniques or methods of motivation include monetary techniques, job-based techniques and sensitivity training. Techniques are also classified as financial and non-financial techniques or plans. Motivational factors in the case of both the executives and subordinates are almost the same, but in the case of the former, competitive performance and pride in a job well done are equally and sometimes even more powerful motivators. Motives are needs that drive a person to work. They are the initiating and sustaining forces of behaviour. Needs may be either primary or secondary needs. Theories of motivation include Maslow’s need hierarchy theory, Herzberg’s two-factor theory, ERG theory, goal-setting theory, Vroom’s expectancy theory, theory of high expectations, praise theory, attribution theory, power theory, McGregor’s Theory X and Theory Y, job characteristic theory and Theory Z. All theories have their own positive and negative points. Work results and incentives have direct or positive correlation with each other. Incentives can be positive or negative incentives, individual or group incentives and financial and non-financial incentives—all with their merits and demerits.

Pages: 36

Job satisfaction is concerned with the feeling one has towards his job. Factors which add to job satisfaction and the methods to measure job satisfaction are explained. Employee morale is the total attitude towards one’s work and colleagues. Various approaches, importance and the main factors contributing to high morale, or the process of high morale building include physical factors and psychological factors. The main methods of measuring morale are also explained. Communication is the process through which two or more people come to exchange ideas and understanding among themselves. After explaining the importance of communication in business organisations, the classification are also explained. The four main types of informal communication channels include single-strand, gossip, probability and cluster. The barriers to communication include semantic barriers, psychological barriers, organisational barriers and personal barriers, which are also duly explained.

Pages: 30

Supervision involves motivating, guiding, supervising and controlling the subordinates. A supervisor may be viewed as a key man in management, a person in the middle, the marginal man, another worker and a human relations expert. A supervisor needs to play all the abovementioned rules. As such, a supervisor has great importance in his organisation. He can be people-oriented as well as production-oriented or both. However, he performs functions more associated with leadership. He should have technical competence, team spirit, knowledge about various techniques of supervision and understanding of human relations besides being impartial, objective, honest, helpful and quick in decision-making. Leadership is a matter of position, person and process. It is the process of influencing behaviour of others. It may be formal or informal or both. A leader should have the ability to inspire and motivate, communicate properly, make quick and appropriate decisions, possess good job knowledge, be impartial and honest, be a good guide and instructor, be disciplined, etc. There are several theories of leadership explained in detail in the chapter. Similarly, there are several leadership styles, like autocratic, democratic, free-reign, bureaucratic, manipulative, expert, Likart’s system I through IV, managerial grid, Reddin’s III-D theory, etc., which are explained in detail. However, in practice, managers use a mixed leadership style.

Pages: 26

No organisation can sustain itself unless it has a disciplined workforce because discipline is the force that prompts individuals/groups to observe rules and regulate the procedures necessary for the effective functioning of an organisation. Discipline is helpful to all stakeholders. However, all organisations have some ‘difficult’ employees who may be ineffective or alcoholic, violate rules or indulge in bad practices. The main approaches to discipline include the hot stove rule, positive discipline, negative/progressive discipline, HRD approach and judicial approach, explained in detail. Types of punishment may include major or minor punishments. The procedure for disciplinary action may include preliminary investigation, issuing a chargesheet, suspension of the employee if required, notice of enquiry, conduct of enquiry, communication of punishment, implementation of punishment and proper follow-up. An HR manager should have diagnostic skills to identify deep-rooted causes of symptomatic manifestations of disciplinary problem and taking remedial steps. Grievance is any dissatisfaction or feeling of injustice in connection with one’s employment situation that is brought to the notice of the management. The major causes of grievance have also been spelt out. Like workers, the employers, too, may have grievances against their employees. Hence, there should be an appropriate grievance-handling procedure in every organisation, which should be simple and easily understandable and may be based on an open-door policy or stepladder procedure. The Model Grievance Procedure was formulated and adopted by ILC in 1958. It has five time-bound stages, explained in detail. In Indian industries, certain grievances are taken care of by the Industrial Employment (SO) Act, 1946; Factories Act, 1948; and Industrial Disputes Act, 1947. However, most organisations have developed their own grievance-handling procedure based on the Model Grievance Procedure.

Pages: 116

No chapter abstract available.

Pages: 25

Maintenance of human relations (HR) and industrial relations (IR) in an organisation is a must for accomplishing its objectives. HR refer to the relationship existing between the employer and his employees considered as individuals, as distinct from IR, which refer to collective relations, i.e. between an employer as one group and the workers as the other group. Both good HR and IR in an organisation are good for all the stakeholders. There are several factors that go to make up a good HR policy such as a sound organisational structure, fair employment conditions, suitable HR policies, equality, social justice, etc. The main contribution of Hawthorne experiments is related to the role of social factors, groups, leadership, communication, conflicts and supervision in group behaviour. Coming to IR, the main theoretical perspectives and approaches to IR include unitary, pluralist, HR approach, systems approach, industrial sociology approach and Oxford approach, all explained in detail. IR, which are the interplay between the government and the employers (or their organisations) and workers (or their trade unions), are affected by both external and internal factors, explained in detail. IR in our country have been a story of peace and conflict since Independence. A lot of steps, like amendments in labour laws, labour reforms, WPM, CB and various judgements of courts/adjudication, have been initiated to improve IR. The employers should frame an appropriate strategy to maintain good HR and IR.

Pages: 38

The effective functioning of collective bargaining (CB) and worker’s participation in management (WPM) indicate the smooth functioning of industrial democracy in the organisation concerned. CB is a bi-partite process in which the representatives of both the employers and the employees negotiate and finalise the terms and conditions of employment, working conditions and the like. While distributive, attitudinal, integrative and intra-organisational are the four main forms of CB, plant, industry and national are the three levels of CB. The process of CB comprises (a) negotiation stage and (b) contact administration, both explained in detail. The growth and development of CB in India has also been discussed in detail. The international scenario of collective bargaining differs from country to country, for example, while in Western Europe approximately 80–90% of employees are covered under CB, in China the concept of CB is almost missing. Coming to worker’s participation in management (WPM), it is to eke out a say of the workers in the decision-making process in an organisation. WPM can be at three levels: plant level, industry level and national level, which can be in the form of informative, consultative, administrative and decision-making participation. Participation can also be in the form of autonomous work groups, quality cycles and so on. WPM is beneficial to all the stakeholders. The origin and growth of WPM in Indian industries has been discussed in chronological order. The main reasons for limited success for WPM in India comprise lack of trust between the two groups (the employer and the unions), lack of proper understanding and application of the concept of WPM on the part of both the groups, lack of support from the management (in certain cases, even from unions), lack of good union leadership, etc. However, the future of WPM in Indian industries is likely to be promising if the prerequisites required for the success of WPM are made available.

Pages: 28

Per Indian Trade Unions Act, 1926, a trade union is any combination, whether temporary or permanent, formed primarily for the purpose of regulating relations between workers and employers, or between workers and workers, or between employers and employers, or for imposing restrictive conditions on the conduct of any trade or business, and include any federation of two or more trade unions. Trade unions have both economic and non-economic objectives. Trade unions can be classified based on (a) composition of members or structure, like labour unions, crafts unions, industrial unions, general unions, blue-collar workers’, and white-collar workers’ unions, and (b) purpose of trade unions, like reformist unions and revolutionary unions. There are several constraints in the proper growth of trade unionism in India, like illiteracy, multiplicity of unions, politicalisation of unions, inter-union and intra-union rivalries, outside leadership, poor finances of trade unions, etc. Trade unions can influence wages of workers through collective bargaining, restructuring the supply of labour to a particular trade and so on. Per the amendment of Trade Unions Act, 1926, any 10% of the total workers of an organisation or 100, whichever is less, can get the trade union registered per rules. For avoiding dual membership of unions and minimising trade union rivalries, the four central unions—AITUC, INTUC, UTUC and HMS—adopted a Code of Conduct. The history of growth of Indian trade unionism has also been discussed in detail. There are eight main national-level federations, including the four mentioned above. It is advisable that all the shortcomings of the Indian trade unionism should be overcome to accelerate the trade union movement in our country.

Pages: 23

Of late, the number of global companies that transcend national boundaries is growing steadily, and more and more pople are being recruited/sent overseas, giving rise to the problem of international human resource management (IHRM). The main types of international organisations are discussed. PCNs, HCNs and TCNs are main sources of staffing foreign subsidiaries. The three approaches to staffing global organisations are ethnocentrism, polycentrism and geocentrism. Outsourcing is also used by some global organisations. The key traits sought among candidates for foreign assignments are appropriate personality, proper family background, organisational requirements, good communication skills in the desired language(s), cultural exposure, etc. Orientation, training and development programmes should be well thought out and duly executed. The balance sheet approach and global approach are the two main approaches followed to determine the salaries and perks of managers on international assignments. Performance appraisal of international managers involves many issues which have also been duly discussed. There are six cultural dimensions contained in the Hofstede’s model, which may have implications in importance of cultural differences awareness and practical application of theory. The Hofstede’s model has also certain limitations at the national level, organisational level, occupational level and gender level. Despite this, the model is quite relevant as every aspect of HRM can be influenced by cultural differences along one or more dimensions of the model.