Human Resource Management Full PPT (1).pdf

Addis Ababa university department of Management human resources management ppt

1. Human Resource
Management
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3. Human Resource Management
Chapter One
An Overview of
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4. Outline
 Definition and background
 Importance of human resource management
 Evolution and development
 Human resource management objectives
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5. Background & Definition of HRM
 Management: is the process of reaching
organizational goals by working with and through
people and other resources.
 Organizational resources can be grouped into four
major categories:
 Human resources, financial resources, physical
resources and information resources etc.
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 People as human assets are the “glue” that holds all the
other resources.
 Human Resource is an important (critical) resource in
coordinating the non-human resources.
 Therefore, managing people as human resources is
essential in organizations of all sizes and types.
 There are some significant differences of labor as
compared to other factors of production (land, capital and
entrepreneurship).

7. Significant differences of labor
1.Human resources of an organization can be
motivated.
2.It is the only factor of production which produces
more than its input.
3.Human resources can produce synergic effect.
4.It is the only resource which gains more
knowledge and skilled in the long run, where
as other factors goes on depleting.
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 HRM refers to the knowledge, skills, creative
abilities, talents, and aptitudes obtained in the
population.
 HR refers to the sum total of the inherent abilities,
acquired knowledge and skills as represented in the
talents and aptitudes of its employees.
HRM is the process of acquiring, training, appraising,
and compensating employees and attending to their
labor relations, health and safety, and fairness
concerns.

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In defining and studying human resources management
some points need to be emphasized:
HRM is concerned with the people dimension of the
organizational management.
HRM is a pervasive activity, meaning a universal activity
in any type of organization
HRM is said to be the most important (critical) element in
an organizationsincepeoplemakethedecisions
concerningallotherorganizationalresources.

10. Functions
of HRM
1. Managerial Function
A. Planning: Determine personnel needs &
develop strategies to motivate employees.
B. Organizing: Design job structures &
coordinate efforts to achieve goals.
C. Staffing: Assign right person on the right
position
D. Directing: Guide employees to ensure
effective performance & adherence to plans.
E. Controlling: Set standards, perform
performance appraisals & monitor employee
performance.
HRM functions
are divided
into two main
categories:
1. Managerial
2. Operational
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11. 2. Operational Function
A. Human Resource
Planning (HRP):
Systematic review of
human resource needs to
ensure the right number
of employees with the
required skills are
available when needed.
B. Job Analysis:
Identifying job tasks and
requirements.
Job Description: Details
duties & responsibilities.
Job Specification: Lists
required qualifications,
experience, & skills.
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C. Recruitment and Selection:
•Recruitment: Attracting
candidates to apply for positions.
•Selection: Choosing the best
candidates for the job.
D. Orientation and Induction:
Helping new employees adjust
to the workplace and reduce
anxiety.
E. Training and
Development:
• Training: Improving
current job performance
and skills.
• Development: Preparing
employees for future roles
and promotions.
F. Compensation Administration: Managing rewards and
compensation for employees' services.

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G. Performance Evaluation: Periodic assessment of employee
job performance.
H. Integration and Maintenance:
•
Integration: Resolving grievances, managing labor relations,
and improving morale.
• Maintenance: Sustaining and enhancing working conditions.
I. Safety and Health: Ensuring protection from workplace
injuries and promoting overall physical and mental well-being.
J. Promotions, Transfers, Demotions, & Separations:
Managing employee career progression and handling transitions.

14. Importance of HRM
1.Helps you get results through others; Through the
efforts of others working in an organization,
managers get things done that require effective
human resource management.
2. Helps you to gain competitive advantage; They
are the main sources of innovation creativity in the
organizations that can be used as a competitive
advantage.
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3. Helps you avoid common personnel
mistakes; Like
Hiring the wrong person for the job
Experiencing high turnover
Finding employees not doing their best
Committing any discriminatory actions
Committing any unfair labor practices

16. Evolution and Development of
HRM
Human Resource Management (HRM) originated
in the US in the 1950s but gained wide recognition
in the 1980s due to various factors.
Like market pressures, declining union
influence, overseas competition, and a need for
innovation.
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17. Evolution of HRM:
• Pre-Industrial Revolution: Economy was agriculture-
based, crafts were specialized within communities.
• Industrial Revolution (1750- 1850) : Shift to industry-
based economy, emergence of personnel management
to handle wages, welfare, and labor issues, leading to
labor unions and the need for industrial relations.
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• Post-Industrial Revolution (1850 onwards): HRM evolved
through studies and experiments. Like:
• Scientific Management by Frederick Taylor (1857-
1911) : Focused on training, efficiency, and productivity.
• Hawthorne Studies by Elton Mayo & Fritz
Roethlisberger (1927- 1940) : Shifted focus to worker
satisfaction.
• McGregor's Theory X & Y (1960) and Maslow's
Hierarchy of Needs (1954) : Transitioned HRM to a
dynamic approach, viewing workers as valuable
resources.

19. Strategic HRM:
With technological
advances and
global competition,
HRM now aligns
individual and
corporate goals,
focusing on long-
term organizational
success.
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Personnel Management Vs HRM
The main difference lies on the former is
the traditional approach the latter
represents the modern approach toward
managing people in an enterprise.

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Personnel
Management
Human Resource
Management
Scope
Specific Broader
Approach
Prioritize traditional
norms, customs, and
practices.
Values and prioritizes the
mission.
Strategic
Handles daily issues
reactively and on an
ad hoc, short-term
basis.
Handles daily issues
proactively, integrates with
other functions, and focuses
on long-term strategy.
Psychological
contract
Relies on employee
compliance.
Seeks employee
commitment.
Success
Criteria
Minimizes human
resource costs.
Controls HR costs while
maximizing long- term
utilization of human
resources.

21. Objectives of HRM
The objectives of Human Resource Management
(HRM) are aligned with organizational goals and
address individual and societal needs. They can be
categorized as follows:
1.Societal Objectives: Ensure social and ethical
responsibility, minimize negative impacts, and
comply with laws related to employment,
discrimination, and safety.
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2. Organizational Objectives: Enhance organizational
effectiveness by supporting overall goals through
strategic HR practices.
3. Functional Objectives: Adjust HR services to meet
organizational needs and ensure the department’s
contributions are appropriate.
4. Personal Objectives: Support employees in achieving
personal goals that enhance their contributions to the
organization, thereby improving performance and
reducing turnover.

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Other key HRM Objectives:
• Develop and utilize a skilled, motivated workforce.
• Maintain a sound organizational structure and good
working relationships.
• Align individual and group goals with organizational
objectives.
• Facilitate employee development and match it with
organizational growth.
• Optimize human resource utilization.

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• Maintain high employee morale & sound human
relations.
• Provide training & development to enhance human
assets.
• Address socio- economic issues like unemployment.
• Offer opportunities for employee expression and voice.
• Ensure fair and efficient leadership.
• Create a favorable work environment for employment
stability.
• Address individual & group needs with fair wages,
benefits, and opportunities.

25. Challenges in HRM
1. Diverse Employee Needs: Catering to the varied
needs of employees as individuals and as groups,
alongside organizational requirements.
2. Modern Labor Unions: Navigating the complexities
and demands of contemporary labor unions.
3. Higher Education Levels: Addressing the
expectations of a more educated workforce for autonomy,
recognition, and financial participation.
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4. Workforce Demographics: Adapting to changes in
workforce composition, including gender, age, ethnicity, and
family structure.
5.
Government Regulations: Complying with increasing
employment regulations, such as equal employment
opportunities.
6.
Technological Advancements: Adapting to changes
brought by technology, such as automation and telecommuting,
which affect job roles and work environments.
7.
Organizational Size and Complexity: Managing HRM in
increasingly large and complex organizations

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28. Human Resource Management
Chapter Two
Environment
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29. Outline
The HRM external environment
The HRM internal environment
The HRM model
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30. Introduction
 The word "environment" we understand the
surrounding or conditions in which a particular
activity is carried on.
 The term 'environment' refers to the “totality of all
factors which influence both the organization and
HRM sub-system”.
 HR program in an organization does not operate in
a vacuum.
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 It is influenced by and has influence the outside the
organization and the inside the organization environments.
 Since HR manager works in a varied environment,
He/she can only do his/her duties well if he/she is updated
with the changing needs of the employees.
 Analysis of the environment is useful for the HR manager to
become proactive and not remain reactive to the
environment.
 Every organization exists in an environment that has both
external and internal components

32. There are two main categories of HRM environment, such as
External and Internal Environment
1. The External Environment
o Exists outside the organization.
o Influence the organizational
performance beyond
management’s control.
o It provides opportunities and
threats to the organization & HRM.
The external
environment can be
subdivided in two
layers:
A.General
Environment
B.Task/ specific/
Environment
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33. A. General Environment
I. Political/ Legal Factors
It usually includes the following factors.
 The political- legal environment is also made up of
the laws and regulations within which an
organization conducts its affairs.
 Business laws of a country also set the do’s and
don’ts of an organization
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Examples
Equal Employment Opportunity: Government laws to equal
opportunity for employment with regard to race, religion, sex,
disability, age or national origin.
Affirmative Action: Affirmative Action is taken for the purpose
of eliminating the present effects of the past discrimination.
Employee’s safety and health: Government passes legislations
that will enforce the employee’s safety and health.
Wages and salaries: Government may set minimum level of
wages and salaries, equal pay for equal work, hours of
work, holiday, leaves, etc.

35. II. Economic Factor
 The economic environment has a major impact on
business in general and the management of
human resources in particular.
 If the economy is booming unemployment rate is
low, it may be harder to acquire and retain the staff.
 In times of economic decline, unemployment rate
increases and a greater choice of labor is available
to the employer.
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When the economy expands, during recovery and
boom period demand for the product will be high. At
this time hiring new employees and training
programs may be needed
During recession and depression demand for the
product will decline or decrease and this leads to the
reduction in the production level, and as a result it forces
to reduce the number of employees.

37. III. Socio-Cultural Factors
These include demographic and cultural characteristics of
the society.
 Demographic factors; Describe the composition of the
workforce, such as age, sex, race, and language which
have a bearing on HR functions.
 Culture; refers to the complex whole which includes
knowledge, belief, art, morals, laws, and customs,
believes by an individual as a member of a society
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38. IV. Technological Factors
 Technological factor refers to the technology
available for the organization to use.
 Technological change will continue to shift
employment from some occupations to others.
 Jobs and the skills of employees are changed by
technology.
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39. V. Geographical factors
 An organization located in a rural area confronts
different conditions than one located in an urban area .
 Recruiting and selection in rural areas may be
different in that there may be fewer applicants or
larger proportion of hirable workers.
 An urban location might be advantageous for
recruiting and holding professional workers.
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40. VI. Labor Market Conditions
 The labor market also directly affects HRM
programs. When there are more workers than jobs,
employers find recruiting costs minimal.
 A surplus of labor can also reduce employee
pressures for compensation and benefit
increase.
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41. B. Task Environment
The task environment consists of factors that
directly/indirectly affect and are affected by the
organization’s operations. Elements of task
environment are:
a)Competitors:policies of the organization are often
influenced by the competitors
b)Customers: “satisfaction of customer” is primary
goal of every organization
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c)Suppliers: suppliers are the providers of production or
service materials
d)Strategic Partners:they are the organization and
individuals with whom the organization is in an
agreement or understanding for the benefit of the
organization.
e)Labor unions: Labor unionsare a group of people who
represent workers in different occupations, and work to
protect the rights of the workers, such as working
conditions, and wages

43. 2. The Internal Environment
 Forces or conditions or surroundings within the
boundary of the organization.
 Those factors contribute to the strength and
weakness of the organization. Some of the internal
factors include:
a)Mission of the organization; The organization's
continuing purpose or reason for its existence.
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b) Policy
 A policy is a predetermined guide established to provide
direction in decision making .
 Some potential policy statements that affect human
resource management are:
 To provide employees with a safe place to work
 To encourage all employees to achieve as much of their
human potential as possible
 To provide compensation that will encourage a high level
productivity in both quality and quantity. Etc.

45. C) Organizational
Climate
The organizational climate is the overall
atmosphere within an organization.
Like people, organizations can be
friendly or unfriendly, open or secretive,
rigid or flexible, innovative or stagnant.
This climate impacts employee
motivation, job satisfaction,
performance, and productivity.
D) Organizational
Culture
Organizational culture is
the collective behavior
of members of an
organization and the
values, visions, beliefs,
habits that they attach
to their actions.
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e)Owners: are people who invested in company. They have
the right to change the company’s policy at any time.
f)Board of Directors:the governing body of the company
who are elected by stockholders, and they are given the
responsibility of overseeing a firm's top managers
g)Employees: the most important element of organizations
internal environment.
h)Leadership style of the organization; practiced by top
management and supervisors will affect the relationship
between supervisors and subordinates.

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i) Nature of the task
HRM as the effective matching of the nature of the task
with the nature of the employee performing the task.
The elements of the nature of the task include:
 Degree of physical exertion
 Working environment
 Physical location
 Degree of human interaction

48. HRM Model
 An HRM model is a framework used to manage an
organization's workforce effectively. These models
encompass various strategies, theories, and
practices to enhance employee performance.
 Here are some well-known HRM models: THE
MATCHING MODEL OF HRM &, THE HARVARD
FRAMEWORK :
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49. A. The Matching Model of HRM
• Introduced by the Michigan School, it describes a
human resource cycle with four key processes:
•Selection: Matching available human resources to
jobs.
•Appraisal: Performance management.
•Rewards: Effective reward systems for short and
long-term achievements.
•Development: Developing high-quality employees.
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50. B. The Harvard Model of HRM
• Developed by the Harvard School, it suggests that HRM
issues should be addressed with a long-term perspective.
• Two key features:
•Line managers take more responsibility for aligning
competitive strategy and personnel policies.
•Personnel sets policies to ensure mutually reinforcing
activities.
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51. MELLA TUTORIALS 51
Four HR policy areas of the Harvard model
1.Employee Influence: Levels of authority,
responsibility, and power.
2.Human Resource Flow: Recruitment, selection,
promotion, appraisal, termination.
3.Reward System: Pay systems and motivation.
4.Work System: Work design and alignment of people.
These lead to the four "C's" that HR policies aim to achieve:
Commitment, Congruence, Competence, and Cost-
effectiveness.

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53. Human Resource Management
Chapter Three
Job Analysis and
Human Resource Planning
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54. Part I: Job Analysis
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55. Outline
 Meaning and definition of job analysis
 Steps in job analysis
 Methods of collecting job analysis information
 Importance of job analysis information
 Potential problems with job analysis
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56. Job and Job Analysis
◦Job is a collection or aggregation of tasks, duties
and responsibilities which as a whole, is regarded
as a regular assignment to employees
◦Each job has a definite title based on standard trade
specializations within a job.
◦Each job is different from other jobs like poem,
clerk, supervisor, and accountant, manager, etc.
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Job Analysis is a process to identify and determine in
detail the particular job duties and requirements.
Job Analysis is a process where judgments are made
about data collected on a job.
Job analysis refers to the anatomy of the job.
Job analysis is not one man affair; it requires the
participation of employees and their immediate
supervisors.
Organizations may use employed human resource
experts or use outside consultants to perform job
analysis.

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oJob analysis answers different questions regarding the job
and job holder. These are:
What physical and mental tasks does the worker
accomplish?
 When is the job to be completed?
 Where is the job to be accomplished?
 How does the worker do the job?
 Why is the job done?
 What qualifications are needed to perform the job

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•Job analysis is performed on three different occasions.
These are:
It is done when new organization is founded
It is performed when new jobs are created
It is used when jobs are changed significantly as a result
of new technology, methods, procedures, or systems.
The job information collected by using one or more
job analysis methods allows management to draw up
a JOB DESCRIPTION, & JOB SPECIFICATIONS.

60. A. Job
Description
o It includes the job's title, location,
duties, working conditions, and hazards,
explaining what needs to be done, how,
and why.
o It sets a standard for the job's functions
and authorized content.
A job description typically includes:
1. Job Identification: Details like job
title, alternative titles, department,
division, plant, and job code.
A job description
outlines the duties,
responsibilities,
and requirements
of a specific job,
focusing on the job
itself rather than
the worker.
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61. MELLA TUTORIALS 61
2.Job Summary: Provides a quick overview of the job in
one or two sentences.
3.Job Duties: Lists major duties and the time spent on
each.
4.Relation to Other Jobs: Shows the job's position in the
organization and work relationships.
5.Supervision: Details the number of people supervised,
their titles, and supervision level.
6.Working Conditions: Describes the job environment,
including factors like temperature, dust, and odors.

62. B. Job
Specification
Based on job analysis, it identifies
necessary knowledge, skills, education,
experience, certification, and abilities.
This tool helps ensure selectors focus on
essential qualifications to determine
candidate suitability.
Job specifications relate to:
a) Physical Characteristics: Health,
strength, endurance, age-range, body
size, height, weight, vision, voice, poise,
coordination, and color discrimination.
Job specification
outlines the
minimum
qualifications
needed to
perform the job
successfully.
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b)Psychological Characteristics: Mechanical
aptitude, ingenuity, judgment, resourcefulness,
analytical ability, mental concentration, and alertness.
c)Personal Characteristics: Appearance, emotional
stability, personality, leadership, cooperativeness,
initiative, drive, interpersonal & communication skills,
& adaptability.
d)Other Demographic Features: Age, sex, education,
experience, and language skills

64. Methods of Collecting Job
Analysis Information
 Observation Method: Directly watching
employees or reviewing films to gather information
on job performance.
 Individual Interview Method: Conducting
detailed one-on-one interviews with employees to
determine job responsibilities.
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Group Interview Method: Interviewing multiple
employees simultaneously to assess job duties.
Structured Questionnaire Method: Using a designed
questionnaire where employees rate tasks they
perform.
Technical Conference Method: Consulting with
supervisors or subject matter experts to obtain job
characteristics.
Diary Method: Having employees record their daily
activities.

66. Steps in job analysis
process
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I. Planning the Job Analysis
• Identify objectives of job analysis
• Obtain top management support
II. Preparing For Job Analysis
• Identify jobs and methodology
• Review existing job documentation
• Communicate the process to managers/employees

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IV. Developing Job Descriptions and Job Specifications
• Draft job descriptions and specifications
• Review drafts with managers and employees
• Finalize job descriptions and recommendations
V. Maintaining and Updating JD & JS
• Update JD and JS as organization changes
• Periodically review all jobs
III. Conducting the Job Analysis
• Gather job analysis data
• Review and compile data

68. Potential
Problems
With Job
Analysis
Job analysis, while essential, is not
without its challenges. Here are some
common issues:
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 Lack of Management Support: Without top
management backing, job analysis may face resistance
and be seen as a threat by employees.
 Lack of Cooperation from Employees: Uncooperative
employees can make the job analysis process ineffective
and wasteful.
 Inability to Identify the Need: Unclear objectives and
needs can render the job analysis process ineffective.
 Bias of Job Analyst: Analyst bias can distort the results.
 Using a Single Data Source: Relying on one data source
can lead to inaccuracies.

70. Part II: Human Resource
Planning (HRP)
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71. Outline
 Meaning and definition of HRP
 Importance of HRP
 Steps[procedures] in HRP
 Factors affecting HRP
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72. Human Resource Planning
(HRP)
 HRP involves forecasting and managing future
manpower needs to ensure the organization has the
right number and type of employees, trained and
motivated, at the right time and place.
 HRP encompasses planning for future manpower
requirements, developing employees to meet changing
needs, and creating replacement and succession plans.
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73. MELLA TUTORIALS 73
• Decenzo & Robbins: HRP ensures the organization has the
right number and types of people, in the right places, at the
right time, to effectively achieve its overall objectives.
• E.W. Petter: HRP is a process that moves the organization
from its current manpower position to its desired position,
aiming for optimal long-term benefits for both the
organization and its employees.
• Leon C. Meggison: HRP is an integrated approach to
ensure a sufficient supply of well-developed, motivated
personnel to meet organizational objectives and individual
goals.

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Major reasons for undertaking HRP
 Future human resource requirements; determining the
human resource needs for the future
 To cope with change; HRP enables the management to
cope with changes in technology, competitive forces,
markets, government regulations
 Foundation for human resource functions; The plan
provides essential information for designing and
implementing human resource functions such as:
recruitment, selection, training and development, appraisal,
compensation and etc.

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 In general, human resource planning:
 Should be something done in advance rather
than reaction to immediate pressure.
 Should guide and coordinate all personnel
activities.
 Should be strategic - linked with high level
planning rather than performed in isolation.
 Should be responsive to both the external and
the organization environment.

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HRP translates organizational goals into the required
number and types of workers, preventing guesswork and
ensuring both short-term and long-term organizational
development.
Importance of Human Resource
Planning
HRP is important for a nation, organization
and employees.

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National Importance
 Forecasting and Policy Adjustment: HRP helps the
government predict the demand and supply of human
resources, enabling adjustments in economic, industrial,
agricultural policies, and population management.
 Occupational Distribution: It assists in planning for
the distribution of occupations, as well as sectoral and
regional allocation of human resources.

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Organizational Importance
 Corporate Planning: HRP supports corporate plans (e.g.
expansion, diversification) by ensuring the availability of required
manpower, suggesting modifications if necessary.
 Managing Uncertainty: It mitigates uncertainty and ensures the
right personnel are available when needed, reducing
management dilemmas.
 Cost Anticipation: HRP helps estimate salary, benefits, and
other HR costs, aiding in budget formulation.
 Coordination: It coordinates various HR functions, including
recruitment, selection, training, and development.

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 Production Continuity: By forecasting human resource needs,
HRP helps prevent production disruptions through effective
recruitment and training policies.
 Equal Employment Opportunity: It ensures compliance with
labor law requirements, and promoting fair employment practices.
 Selection Techniques: HRP guides the development of
appropriate selection tests and interviews based on required skills
and qualifications.
 Control: HRP facilitates control over HR functions, operations,
contributions, and costs.

80. MELLA TUTORIALS 80
• Career Development: HRP provides opportunities
for advancement through training and succession
planning, enhancing job satisfaction and reducing
absenteeism and turnover.
• Individual Needs: It helps meet employees’ needs
for promotions, transfers, salary increases, and
better benefits.
Employee Importance

81. Steps in
Human
Resource
Planning
(HRP)
MELLA TUTORIALS 81
Compared
With
If none
END
Organizational
Objectives and
plans
HR demand
HR forecasts of no. skills,
& occupational categories
needed in labor forces
HR supply
Skills inventory
management
succession plan
Variances
If surplus If shortage
Action Decision
-Lay offs
-Early retirement
-Wage/benefit cuts
-etc
Action Decision
-Over time
-Recruitment
-Sub-contracting
-etc

82. 1. Analysis of Organizational
Plans and Objectives:
• HRP is aligned with the overall organizational plan,
including technology, production, marketing, finance,
and expansion plans.
• Analyze sub-plans and detailed programs.
• Determine the time horizon for HR plans.
• Clarify future organization structure and job design
to anticipate manpower requirements.
MELLA TUTORIALS 82

83. 2. Forecasting Demand for
Human Resources:
• Estimate future HR needs based on organizational plans.
• HR demand forecasting involves predicting the number
and types of employees needed by the end of the
planning period.
• Consider organizational plans such as market coverage,
production, financial levels, and expansion programs.
• Account for changes in internal mobility, separations,
and employee qualities and attitudes.
MELLA TUTORIALS 83

84. 3. Forecasting Supply of
Human Resources:
• Determine how to fill projected openings.
• Internal sources include current employees eligible
for promotion, transfer, or demotion.
• External sources include employees from other
organizations and the unemployed.
MELLA TUTORIALS 84

85. Requirements for forecasting
supply include:
• Clear picture of future manpower requirements.
• Current manpower inventory.
• Data on manpower flows, loss rates, and additions.
• Data on external supply of skills and experience.
MELLA TUTORIALS 85

86. 4. Estimating Manpower
Gaps:
• Compare demand and supply forecasts to identify
net human resource requirements.
• Outcomes can be:
•Future supply matches future demand (rare).
•Future supply exceeds demand (surplus).
•Future supply falls short of demand (shortage) .
• Address gaps by training, redeployment, or
termination.
MELLA TUTORIALS 86

87. 5. Matching Demand and
Supply:
• Assess and match HR demand and supply to identify
overstaffing or understaffing.
• Prepare plans to bridge gaps:
•Address surplus through redeployment,
retrenchment, voluntary retirement.
•Address shortage through recruitment,
selection, transfer, promotion, and training.
• Consider macro and micro environmental factors.
MELLA TUTORIALS 87

88. Options to Address Shortages
Short-term
•Increase over/part-time work.
•Increase contract work.
•Improve productivity through
training.
•Buy holidays vacations.
•Temporary assignments.
•Temporarily transfer work
out.
Long- term:
•Recall from leaves.
•New hires.
•Permanent transfer in
workers.
•Training and
development.
•Permanent transfer of
work.
MELLA TUTORIALS 88

89. Options to Address Surplus
Short-term
•Freeze hiring.
•Reduce part-time work.
•Transfer work in temporarily.
•Reduce work weeks.
•Temporary shutdowns or layoffs.
•Excuse absenteeism.
•Temporary assignment to other units.
•Retrain or train.
Long- term:
•Freeze hiring.
•Encourage
attrition.
•Permanent transfer
out of workers.
•Retrenchment.
MELLA TUTORIALS 89

90. Factors Affecting Human
Resource Planning
External Factors
1.Government:
2.Economic Conditions:
3.Social Conditions:
4.Technological Challenges:
5.Competition for Labor:
MELLA TUTORIALS 90

91. MELLA TUTORIALS 91
Internal Factors
1.Organization's Strategies and Objectives:
2.Organizational Size and Structure:
3.Organizational Culture & Management Philosophy:
4.Workforce Factors :
5. Labor Union:
6.Organization's Financial Ability:
7. Nature of Jobs and Tasks:

92. Challenges of HRP
1. Uncertainties:
2. Inadequate Information
Systems:
3. Employer Resistance:
4. Employee and Union
Resistance:
5. Lack of Top Management
Support:
6. Difficulty in coordination:
7. Balancing quantitative and
qualitative aspects:
8. Mistrust from operating
managers:
9. Lack of understanding by
HR specialists:
MELLA TUTORIALS 92

93. For more educational videos please subscribe the
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MELLA TUTORIALS 93
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94. Human Resource Management
Chapter Four
Recruitment
Selection
Induction & Orientation
MELLA TUTORIALS 94

95. Part I
Recruitment
MELLA TUTORIALS 95

96. Outline
 Employee Recruiting
 Features of recruitment
 Purpose of recruitment
 Factors governing recruitment
 Sources and methods of recruitment
MELLA TUTORIALS 96

97. Introduction
o The human resources are the most important assets
of an organization.
o The success or failure of an organization is largely
dependent on the caliber of the people working in
the organization.
o Without positive and creative contributions from
people, organizations can not progress and prosper
MELLA TUTORIALS 97

98. Recruitment
 It is the process of finding and attracting capable
applicants for employment.
 The process begins when new recruits are sought
and ends when their applications are submitted.
MELLA TUTORIALS 98

99. Nature of Recruitment
 It is a linking activity as it brings employer and
prospective employees together.
 The basic function of recruitment is to locate the
sources of people required to meet the job
requirement.
 It is a pervasive function
 Recruitment is a two-way function as it takes both
recruiter and recruits together.
MELLA TUTORIALS 99

100. Purpose of recruitment
 Attract diverse skills aligned with organizational
strategies.
 Bring in external candidates for fresh insights and
leadership.
 Continuously add new talent at all levels.
 Cultivate a culture that attracts and retains top talent.
 Expand global talent search using innovative methods
MELLA TUTORIALS 100

101. Types of Recruitment
There are three types of recruitment occasions; such as:
o Planned: The needs arising from changes in
organization and retirement policy.
o Anticipated: organization can predict by studying
trends in internal and external environment.
o Unexpected: Resignations, deaths, accidents, illness
give rise to unexpected needs.
MELLA TUTORIALS 101

102. Factors Governing
Recruitment
 Recruitment is complex and influenced by internal
and external factors .
 These factors can either help or hinder attracting
many qualified candidates.
 Key factors affecting effective recruitment include:
External Factors Vs. Internal Factors
MELLA TUTORIALS 102

103. MELLA TUTORIALS 103
Internal FactorsExternal Factors
 Competing organizations'
policies
 Career opportunities
elsewhere.
 Government regulations.
 Supply and demand.
 Unemployment rate.
 Labor market conditions. o Working conditions
o Promotional
opportunities
o Salary and benefits
o HR policies and practices
o Organization's image
o Management's ability to
attract candidates

104. Sources of Recruitment
Thus, there are two general sources of recruitment;
internal and external.
1.Internal Sources
o Internal recruitment seeks applicants for positions from
currently employed workers of an organization.
o With the exception of entry-level positions, most
organizations try to fill positions with current employees.
MELLA TUTORIALS 104

105. Internal sources: filling positions through current
employees via transfers, promotions, or recalls.
Advantages:
Better understanding of candidates’
strengths and weaknesses.
Less need for orientation and
training.
Enhances employee morale and
loyalty.
Maximizes return on investment in
existing workforce.
Disadvantages:
Risk of promoting
employees beyond their
capabilities.
Potential for negative
morale due to internal
competition.
May limit new ideas and
innovation.
MELLA TUTORIALS 105

106. 2. External Sources
External recruiting is attracting applicants from outside
the organization. External sources provide large pool of
candidates.
Employers require external sources for:
o To fill entry- level jobs (jobs for the beginners).
o To acquire skills not possessed by current employees.
o To obtain employees with different background, to
provide new idea
MELLA TUTORIALS 106

107. MELLA TUTORIALS 107
Advantages:
• Larger talent pool compared
to internal sources.
• Often cheaper due to lower
training costs.
• Easier to hire skilled or
managerial people
externally.
• Introduces new ideas and
perspectives.
• Expands external relations.
• Avoids internal promotion
politics.
• Ensures diverse selection
without biases.
Disadvantages:
•Difficult and costly to attract,
contact, and evaluate
candidates, especially for
higher-level roles.
•Longer adjustment and
orientation period needed.
•May reduce morale among
internal employees who feel
overlooked.
•More expensive and time-
consuming.
•Requires additional
orientation and training for
new hires.

108. Recruitment Method
I. Internal method
 Management should able to identify
current employees who are capable of
filling position.
 Examples of internal recruitment
MELLA TUTORIALS 108

109. MELLA TUTORIALS 109
 Job posting is a process where announcements of
positions are made available to all current employees
through organization newsletters, bulletin boards, and
so on.
 Skill Inventory: An internal recruitment method to
identify employees with the necessary attributes for a job.
 It involves maintaining a systematic record (manual or
computerized) of employees' education, career interests,
languages, special skills, etc.

110. II. External Method
A.Job Advertisement
It is a widely used recruitment method in order to
reach relatively large number of potential
applicants.
Advertisements are commonly placed in daily
newspapers, trade and professional
newspapers, radio, TV and billboards .
MELLA TUTORIALS 110

111. MELLA TUTORIALS 111
Effective job advertisements follow four guidelines:
•Attract attention: use wider borders or empty space to
make the ad stand out.
•Create interest: highlight key job aspects like location
and exciting assignments.
•Generate desire: emphasize benefits like job
satisfaction, career development, and travel.
•Encourage action: include phrases like "call today" or
"write today for more information" to prompt
applications.

112. B. College Recruiting
(Educational institutions)
 It involves recruitment from educational
institutions that offer opportunities to recruit recent
graduates.
 Educational institutions are particularly excellent
for entry- level positions.
 It could be also important sources of professional
and technical employees.
MELLA TUTORIALS 112

113. C. Employment Agencies
o Public or private agencies that provide
information on job seekers' qualifications, skills,
and interests, serving as valuable sources of
employment for organizations.
o Public agencies often supply blue-collar and
white-collar workers, while private agencies focus
on clerical, white-collar, and managerial
personnel.
MELLA TUTORIALS 113

114. MELLA TUTORIALS 114
The organization lacks
an HR department
A position needs to be
filled quickly
There is a need to attract
more minority and
female applicants
Employment agencies
are useful when:
These agencies typically pre-
screen applicants. To ensure
quality, organizations should:
• Provide accurate and complete
job descriptions to the agency
• Specify the screening tools and
methods to be used
• Periodically review data on
accepted or rejected candidates
• Develop long-term relationships
with one or two agencies

115. D. Employee referrals
 Employees who were hired through referrals from
current employees tend to stay within the organization
longer
 this method of recruiting potential employees can cut
recruiting costs by eliminating advertising and agency
fees
 Employee referral method may result in nepotism and
sometimes violet equal employment opportunity law
MELLA TUTORIALS 115

116. MELLA TUTORIALS 116
The most common and least
expensive approach for job
candidates is direct
applications where job seekers
submit unsolicited application
by: Letter (e.g., a resume),
Telephone and in person
E. Walk-ins/Write-
ins or Unsolicited
application
F. Apprenticeship/
Internship
 An apprenticeship is a special
form of recruiting in which a
student is placed in a temporary
job
G. Labor contractor:
Often unskilled and semiskilled
workers are recruited through
labor contractors.

117. H. Internet (websites)
E-recruitment offers several
advantages:
•Reduces recruitment costs
and speeds up the
recruitment cycle
•Simplifies the application
process
•Reaches a wide pool of
potential applicants
However, it also has drawbacks:
•Excludes applicants without
internet access
•Attracts many unsuitable
applicants due to the ease of
applying online
•Makes the recruitment process
impersonal
MELLA TUTORIALS 117

118. Generally we can summarize methods of
recruitment in to three part
A.Direct method of recruitment: Recruiters directly
contact the prospective employees and attract them.
B.Indirect method: Organizations encourage
prospective employees to apply for vacancies through
advertisements in newspapers, magazines,
journals, etc.…
C.Third party method: Private employment agencies
MELLA TUTORIALS 118

119. Part II
Selection
MELLA TUTORIALS 119

120. Selection
 Selection is the process of picking individuals
who have relevant qualifications to fill jobs in an
organization.
 It is the process of differentiating between
applicants in order to identify those with a
greater likelihood of success in a job
MELLA TUTORIALS 120

121. Basis Recruitment Selection
Meaning It is an activity of
establishing contact
between employers and
applicants.
It is a process of picking up
more competent & suitable
employees.
ObjectiveIt encourages large no of
candidates
It rejects unsuitable
candidates.
Process It is a simple process. It is a complicated process.
Approach It is a positive approach.It is a negative approach.
Sequence It precedes selection. It follows recruitment.
Economy It is an economical method.It is an expensive method.
Time
consuming
Less time is required. More time is required.
Recruitment Vs.Selection
MELLA TUTORIALS 121

122. Selection Criteria
Clear criteria are essential for credible selection decisions,
choosing appropriate procedures, and validating the
process. Three Perspectives to Determine Selection
Criteria:
1.Organizational Fit
Attributes valued by the organization, affecting
judgments on a candidate’s potential success. For
example, in an expanding and innovating company,
flexibility and adaptability might be key
MELLA TUTORIALS 122

123. MELLA TUTORIALS 123
2. Functional and Team Fit
Criteria specific to a department or team, such as
appropriate interpersonal skills for all HR members.
Important for integrating the new hire into a
preexisting work team.
3. Job Fit
Specific job criteria derived from job analysis, typically
detailed in job descriptions and person specifications.
While the influencing factors are clear, forming these
specifications is complex

124. Selection Process
 Selection is usually a series of hurdles or steps.
 The time and emphasis placed on each step will
vary from one organization to another
organization and indeed job to job within the
same organization.
 The sequencing of steps also may vary from job
to job and organization to organization. Now let us
examine step by step in detail.
MELLA TUTORIALS 124

125. 1. Reception
 In order to attract people with talent, skills,
experience a company has to create a favorable
impression on the applicant’s right from the stage of
reception.
 Whoever meets the applicant initially should be
tactful and able extend help in a friendly and
courteous/polite way.
MELLA TUTORIALS 125

126. 2. Screening Interview
 It is also called preliminary interview which is cut
the cost of selection by allowing only eligible
candidates to go through the further stages in
selection.
 Getting responses from applicants on important
items determining the suitability of an applicant for a
job such as age, education, experience, pay
expectations, aptitude, location choice, etc.
MELLA TUTORIALS 126

127. 3. Application Blank
It is one of the most common methods used to
collect information on various aspects of the
applicants academic, social, demographic,
work related background and references.
MELLA TUTORIALS 127

128. MELLA TUTORIALS 128
It is a brief history sheet of an employee’s background
usually containing the following things.
 Personal Data
 Marital Data
 Physical Data
 Educational Data
 Employment Data
 Extracurricular Activities Data
 References

129. 4. Selection Tests
 Another important decision in the selection
process involves applicant testing.
 A test is a standardized, objective measure of a
person’s behavior, performance and attitude.
 Some of tests commonly used employment tests
may be stated as:
MELLA TUTORIALS 129

130. A. Intelligence Tests
These are mental ability tests. They measure the
learning ability of individual and also the ability to
understand instructions and make judgments.
The basic objective of these tests are to pick up
employees who are attentive and quick at learning
things
These tests do not measure any single trait but several
abilities such as memory, vocabulary, verbal fluency,
perception etc.
MELLA TUTORIALS 130

131. B. Aptitude Tests
These tests indicate the ability or fitness of an
individual to engage successfully in any number of
specialized activities.
They cover such areas as clerical aptitude(
administrative work), mechanical aptitude, how
to apply mechanical aptitude to solve the
problem at technical area. , motor coordination,
etc..
MELLA TUTORIALS 131

132. C. Personality Tests
These tests measure a prospective employee’s motivation to
function in a particular environment. There are three types:
I.Projective Tests: Candidates interpret problems or
situations based on their own motives, attitudes, and
values.
II.Interests Tests: Compare a person’s interests with those
of successful individuals in a specific job.
III.Preference Tests: Compare employee preferences with
job and organizational requirements.
MELLA TUTORIALS 132

133. MELLA TUTORIALS 133
D. Achievement tests
These are designed to measure what the applicant can do on
the job currently.
E. Simulation Tests
Simulation exercise is a test which duplicates many of the
activities and problems an employee faces while at work
F. Graphology Tests
It is designed to analyze the handwriting of an individual.

134. MELLA TUTORIALS 134
H. Polygraph (lie detector) Tests:
The polygraph records physical changes in the body as the
test subject answers a series of questions.
It regards fluctuations in respiration, blood pressure and
perspiration on a moving role of graph paper.
I. Integrity Tests:
These are designed to measure employee’s honesty to
predict who are more likely to steal from an employer or
otherwise act in a manner unacceptable to the organization.

135. 5. Selection Interview
Interview is the oral examination of candidates for employment.
Types of Interviews:
 Non-directive Interview: In this the recruiter asks questions
as they come to mind. There is no specific format to be
followed.
 The Direct or Structural Interview: In this method the
recruiter uses predetermined set of questions that are
clearly job related.
MELLA TUTORIALS 135

136. MELLA TUTORIALS 136
 The Situational Interview: In this approach the applicant is
confronted with a hypothetical incident and asked how he/ she
would respond to it.
 The behavioral Interview: The behavioral interview focuses
on actual work incidents (as against hypothetical interview in the
situational interview) in the applicant’s past.
 Stress Interview: In this interview the interviewer attempts to
find how applicants would respond to aggressive, embarrassing,
rude and insulting questions.
 Panel interview: In a typical panel interview the applicant
meets with three to five interviewers who take turns asking
questions.

137. MELLA TUTORIALS 137
6. Medical Examination
Certain jobs require physical qualities like clear vision,
acute hearing, unusually high stamina, tolerance of
arduous (difficult) working conditions, clear tone of voice.
7. Reference Checks
The HR department is engage in checking the references.
candidates are required to give the names of two or three
references in their application forms.

138. 8. Hiring Decision
The line manager concerned has to make the
final decision now
The line manager has to take adequate care in
taking the final decision because of economic,
behavioral and social implications of the
selection decisions.
MELLA TUTORIALS 138

139. Barriers to effective
selection
Perception: Our inability to understand others
accurately is probably the most fundamental barrier
in selecting the right candidate.
Fairness: Fairness in selection requires that no
individual should be discriminated against on the
basis of region, religion, race or gender.
MELLA TUTORIALS 139

140. MELLA TUTORIALS 140
Validity: A test that has been validated can
differentiate between the employees who can perform
well and those who will not.
Reliability: It is one which will produce consistent
results when repeated in similar situations.
Pressure: It is brought on the selectors by politicians,
bureaucrats, relatives, friends, pears to select
particular candidates.

141. Part III
Orientation
MELLA TUTORIALS 141

142. Introduction
o After selecting a candidate, he/she should be
placed on a suitable job.
o Placement is a process of assigning suitable jobs to
employees. It is a systematic approach to assign
the right person for the right job.
o Proper placement helps an employee to get along
with people easily, avoid mistakes and so good
performance on the jobs.
MELLA TUTORIALS 142

143. Orientation Vs. Induction
Induction: refers to the process of socializing a
new employee with the overall organizational
environment through the providing of adequate
information in order to match with organizational
interest.
Orientation: involves discussion between a
manager & employee regarding the job
assignment including specific location, rules &
procedures of the work as well as the resource
needed to do the job.
MELLA TUTORIALS 143

144. MELLA TUTORIALS 144
 Orientation makes the employee feel at
home from day one and develop a sense of
pride in the organization and commitment to
the job.
 Orientation is the task of introducing the
new employees to the organization and its
policies, procedures and rules.

145. Purpose of orientation
a)Removes fears: It assists them in knowing more
about:
The job, its content, policies, rules and regulations.
The people with whom they are supposed to
interact.
The terms and conditions of employment
b)Creates a good impression
c)Act as a valuable source of information
MELLA TUTORIALS 145

146. Problems of orientation
 Supervisor who is entrusted with the job is
not trained or is too busy.
 Employee is overwhelmed with too much
information in a short time.
 Employee is given only menial tasks that
discourage job interest on company loyalty.
MELLA TUTORIALS 146

147. MELLA TUTORIALS 147
 Employee is asked to perform tasks where
there are high chances of failure
 Employee is thrown into action too soon.
 Employee is forced to fill in the gaps
between a broad orientation by the HR
department and a narrow orientation at the
departmental level.

148. Levels of orientation
General Company Orientation
•
Overview of the Organization: Founding, growth, goals,
priorities, traditions, customs, community relations.
•Key Policies and Procedures
•Compensation: Pay rates, payment methods, advances,
loans.
•Fringe Benefits: Insurance, holidays, vacations, sick leave,
maternity leave, retirement plans, recreation.
•Safety and Accident Prevention: Health clinics, safety
precautions, fire prevention.
MELLA TUTORIALS 148

149. Departmental and Job Orientation
• Specific to the new employee’s department and job, given by
the supervisor or a qualified co-worker. Includes:
•Department Functions: Goals, priorities, structure,
relationships with other departments.
•Job Duties and Responsibilities: Job description, common
problems, equipment maintenance, overtime requirements.
•Policies, Procedures, Rules, and Regulations:
Department-specific rules, safety precautions, tours of the
department and facilities.
MELLA TUTORIALS 149

150. For more educational videos please subscribe the
below you tube and telegram channel
You Tube:
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MELLA TUTORIALS 150
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A hub of wisdom.

151. Human Resource Management
Chapter Five
Training and
Development
MELLA TUTORIALS 151

152. Outline
o Meaning of training and development
o Objectives of training and development
o Process of training and development
o Training and development methods
o Career and executive development
MELLA TUTORIALS 152

153. Overview
 It is know that successful candidates placed on the
jobs need training, to perform their duties effectively.
 Workers must be trained to operate machines,
reduce scrap and avoid accidents.
 It is not only the workers who need training.
Supervisors, managers and executives also need
to be developed in order to enable them to grow and
acquire maturity of thought and action .
MELLA TUTORIALS 153

154. What is training?
 Employee training is the process where people
learn the skills, knowledge, attitude, and behavior.
 Training is a learning experience which seeks a
relatively permanent change in an individual that
will improve the ability to perform on the job.
 Training is defined as any attempt to improve
employee performance on a currently held job.
MELLA TUTORIALS 154

155. What is development?
 Development refers to learning opportunities
designed to help employees grow.
 Such opportunities do not have to be limited to
improving employee‘s performance on their
current jobs.
The focus of development‘ is on the long term to
help employees prepare for future work
demands.
MELLA TUTORIALS 155

156. Training Vs. Development
Training Development
Short term process Long term process
Given to technical
people
Given for managerial staff
To improve current
held job skill
To help employees grow to
future
People acquire
technical
knowledge and skill
Executives acquire
conceptual and theoretical
knowledge
It is job centered It is career oriented
MELLA TUTORIALS 156

157. Importance of Training and
Development
 Increasing Productivity:
 Improving Quality:
 Meeting Future Personnel Needs:
 Enhancing Organizational Climate:
 Improving Health and Safety:
 Preventing Obsolescence:
 Promoting Personal Growth:
MELLA TUTORIALS 157

158. Process of Training and
Development
1.Determining Needs and Priorities:
Organizational Analysis, Job Analysis and
Personal Needs Analysis.
2.Setting Objectives and Goals: Define the
skills to be taught, the number of trainees, and the
training period.
MELLA TUTORIALS 158

159. MELLA TUTORIALS 159
3.Selecting Trainees: Choose trainees based on
legal requirements, employee needs and motivation,
skills obsolescence, and multi- skilling potential.
4.Designing Curriculum and Methods:
Develop the overall training plan and select
appropriate methods (e.g., on-the-job, off-the-job, long
or short-term).
5.Preparing Training Budget: Account for costs
such as staff planning, trainees' wages, trainers'
salaries, and training materials.

160. MELLA TUTORIALS 160
6.Selecting and Training Trainers: Use internal or
external trainers and provide them with information
about the trainees.
7.Implementing Training Techniques: Use various
methods to teach new skills and knowledge, encouraging
trainees to engage and ask questions.
8.Performance or Learning Tryout: Monitor
trainees' progress through assessments.
9.Evaluating the Training Program: Measure the
program's effectiveness in meeting objectives.

161. Methods of Training
 On-the-job training and off-the-job training
are two different approaches to employees
training.
 The choice of technique is often influenced by
the type of learning required (cognitive, skill-
based, or affective), as well as cost and time
considerations.
MELLA TUTORIALS 161

162. On-the-Job Training
o On-the-job training occurs when employees learn
their jobs under direct supervision in their actual
work environment.
o They learn by observing experienced employees
and working with real materials, personnel, or
machinery relevant to their jobs .
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163. MELLA TUTORIALS 163
Advantages:
Realistic Experience:
Immediate Application.
Cost-effective:
Productive:
Mentorship Opportunities:
Disadvantages:
Disruption:.
Quality Variance:
Stressful:
Limited Scope:
The trainer provides role modeling, instruction, and
guidance, with immediate feedback on performance

164. Types of On- the-job Training
1.Job Rotation: Employees rotate through different
positions or departments to gain a broad
understanding of the organization and develop
diverse skills .
2.Apprenticeship: Combines hands- on work with
classroom instruction, typically in skilled trades
such as plumbing or electrical work.
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165. MELLA TUTORIALS 165
3.Coaching/Mentoring: Experienced employees
provide guidance and support to less experienced
employees, offering advice, feedback, and hands- on
training.
4.Internships: Temporary positions that provide
practical experience in a specific field, often aimed
at students.
5.Shadowing: The trainee observes an experienced
employee to understand the intricacies of the job
before gradually taking on tasks.

166. Off-the-job training
 Training that takes place outside the actual work
environment, often in a classroom or training center.
o On-the-job training is practical, cost-effective, and
immediately applicable but can be stressful and
inconsistent.
o Off-the-job training offers a focused, consistent, and
broad learning experience but can be costly, less
realistic, and temporarily reduce productivity.
MELLA TUTORIALS 166

167. Advantages:
Focused
Environment:
Standardization:
Broader Scope:
Networking:
Disadvantages:
Cost:
Lack of Realism:
Delayed Application:
Time Away from
Work:
MELLA TUTORIALS 167

168. Types of Off-the-job
Training
1.Classroom Training: Training sessions conducted
in a classroom using lectures, presentations, &
discussions.
2.Seminars and Workshops: Short-term training
events focused on specific topics or skills.
3.E-learning/Online Training: Digital courses that
employees can complete at their own pace, often
including videos, quizzes, and interactive content.
MELLA TUTORIALS 168

169. MELLA TUTORIALS 169
4.Simulation: Use of virtual or physical models to
replicate real work scenarios.
5.Role-playing: Participants act out scenarios to
practice interpersonal skills, problem-solving, and
decision- making in a controlled setting.
6.Conferences: Large events where industry
professionals gather to share knowledge, network.
7.Workshops: Interactive training sessions that involve
hands- on activities, group exercises, and practical
application of concepts.

170. Potential Training Providers
• Supervisors and Managers: Provide on-the-job
training, mentoring, and assess career needs.
• Co-workers: Act as peer trainers and coaches,
especially effective in industries like hospitality.
• Subject Matter Experts (SMEs):
• Self-paced Instruction: Employees learn at their
own pace using computer-based training.
MELLA TUTORIALS 170

171. Executive Development
 Executive or management development
encompasses all activities aimed at improving
executives' behavior and performance .
 It focuses on preparing managers for future
leadership positions of greater complexity and
responsibility.
 Key Aspects: Educational Process, Behavioral
Changes, Self-Development, & Continuous Process.
MELLA TUTORIALS 171

172. Career Development
 Linked closely with executive development, career
development focuses on long-term effectiveness and
success within the organization.
 It aligns individual aspirations with
organizational needs, fostering talent retention,
diversity, and organizational goodwill.
MELLA TUTORIALS 172

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174. Human Resource Management
Chapter Six
Performance Appraisal
MELLA TUTORIALS 174

175. Outline
 Meaning of Performance appraisal
 Purpose of performance appraisal
 Performance appraisal steps
 Problems associated with performance appraisals
 Performance appraisals methods
MELLA TUTORIALS 175

176. Performance Appraisal
o Performance appraisal is the systematic process
of measuring and evaluating employees with
respect to their performance on the jobs and their
potential for development.
o Performance appraisal is a method of evaluating
the behavior of the employees in the work spot,
qualitatively and quantitatively.
MELLA TUTORIALS 176

177. Performance Appraisal
Purposes
 Feedback: Informs employees about their job
performance, highlighting areas for improvement
and growth opportunities.
 Compensation Decisions: Basis for pay raises,
emphasizing merit over seniority.
 Performance Improvement: Identifies areas for
development and necessary interventions.
MELLA TUTORIALS 177

178.  Training and Development: Guides in creating
effective training programs by identifying skill gaps
and potential.
 Informational Inaccuracies: Highlights errors in
job analysis or HR systems, prompting corrections.
 Job-Design Errors: Identifies poorly designed
jobs needing adjustments.
 Placement Decisions: Aids in decisions regarding
promotions, transfers, and demotions.
MELLA TUTORIALS 178

179. Performance Appraisal
Process
I.Establish Performance Standards: Set clear,
job-based standards as benchmarks for
evaluation.
II.Communicate Standards: Ensure employees
understand the criteria for evaluation.
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180. MELLA TUTORIALS 180
III.Measure Actual Performance: Use objective
and subjective measures to evaluate performance
against standards.
IV.Discuss Appraisal: Provide feedback on
performance, highlighting areas of success and
improvement.
V.Initiate Action: Take corrective action or revise
standards based on appraisal outcomes.

181. Performance Appraisals
Methods
Traditional Methods
1.Ranking method
2.Grading method
3.Rating scale method
4.Check list method
5.Narrative methods
6.Field review method
7.Confidential report
Modern Methods
1.Assessment Centre method
2.Appraisal by Results or
MBO.
3.BARS (Behaviorally
Anchored Rating Scales.)
4.360 degree feedback
method (Multi- Rater
Assessment method)
MELLA TUTORIALS 181

182. A. Traditional Method
MELLA TUTORIALS 182

183. 1. Ranking Methods
Ranking methods are methods in which the
performance of an employee is ranked relative
to the performance of others.
Ranking techniques include alternation ranking,
paired comparison, and forced distribution.
MELLA TUTORIALS 183

184. MELLA TUTORIALS 184
a)Alternation Ranking Method: It is ranking of
employees from best to worst on a particular
trait.
b)Paired Comparison Method: It is ranking
employees by comparing each employee with
every other employee in the rating group at a
time.
c)Forced distribution: Compare the performance
of employees and place a certain percentage
of employees at various performance levels

185. 2. Grading method
• Under this system, the rater assign grades based on
specific traits and marks them accordingly to a scale.
• The selected features may be analytical ability,
cooperativeness, dependability, job knowledge,
organizing ability etc.
• They may be:
A-outstanding, B-very good
C-good or average D-poor etc.
MELLA TUTORIALS 185

186. 3. Graphic/Rating Scale/Method
 Graphic rating scale consists of a list of general personal
traits (job-related) and a range of performance for each of
the traits.
 The list of traits might include ; quantity and quality of
work, job knowledge, initiative, cooperativeness,
attendance, accuracy of work, etc
 The scale typically features a Likert scale from 1-3, 1-5,
and so on.
MELLA TUTORIALS 186

187. 4. Checklist Method
 The rater uses a list of behavioral descriptions
required to do a job.
 In a simple checklist method, the rater makes Yes-
or-No responses
MELLA TUTORIALS 187
5. Narrative Methods
 Some raters use written appraisal method to
evaluate the performance of employees;

188. MELLA TUTORIALS 188
These records describe an employee’s action rather
than showing an actual rating. these are:
a)Critical- Incident: is a performance appraisal
technique, where the employer keeps a log of
negative and positive behavior of his/her
subordinates.
b)Essay Appraisal Method/free form method/:
requires that evaluation describe an employee’s
performance in written narrative form.

189. 6. Field Review
Method
The supervisor is
required to give his/her
opinion about the
progress of his
subordinates, the level
of performance.
7. Confidential
Report
In this method each
employee is rated
confidentially by one or
more senior officers for
his performance.
MELLA TUTORIALS 189

190. B. Modern Method
MELLA TUTORIALS 190

191. 8. Assessment Centre Method
 The purpose of this method is to test candidates in
a social situation, using a number of accessories
and a variety of procedures.
 The most important feature of the assessment
center is job related simulations.
 Assessments are made to determine employee
potential for purposes of promotion.
MELLA TUTORIALS 191

192. 9. Management By Objective
(MBO)
 A comparison between specific, quantifiable target
goals and the actual results achieved by an
employee.
 MBO has been shown to be useful for defining
“individual” or unit performance in the context of
strategic plans.
MELLA TUTORIALS 192

193. 10. Behaviorally
Anchored Rating
Scale (BARS)
The focus of BARS is not on
performance of outcomes but
on functional behaviors
demonstrated on the job.
The assumption is that these
functional behaviors will
result in effective job
performance.
11. Multi-rater
Assessment (360-
degree Feedback)
With this method;
managers, peer,
customers,
suppliers, and
subordinates are
involved in appraising
an employee.
MELLA TUTORIALS 193

194. Problems Associated With
Performance Appraisals
A.Lack of Objectivity: Vague standards can lead to
misinterpretation.
B.Halo and Horn Effect: Overgeneralizing positive
or negative traits .
C.Leniency/Strictness: Tendency to rate all
employees too high or too low.
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195. MELLA TUTORIALS 195
D.Central Tendency: Rating all employees as average.
E.Recent behavior bias: evaluations based on employee’s
recent behaviors.
F.Similarity error: Evaluator rates others in the same way.
G.Low appraiser motivation: Evaluators may be reluctant.
H.Inflationary pressures: Fear of revenge for low rating.
I.Anxiety: Evaluation process may create anxiety
J.Stereotyping: Managers allow individual differences
such as gender, race, or age to affect ratings

196. 1.Appraisal by Immediate Supervisor
2.Appraisal by Peers
3.Appraising by Rating Committees
4.Self-ratings
5.Appraisal by Subordinates
MELLA TUTORIALS 196

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198. Human Resource Management
Chapter seven
Employee Compensations
MELLA TUTORIALS 198

199. Outline
 Meaning of compensation
 Importance of compensation
 Factors affecting compensation
 Employee benefits and service
MELLA TUTORIALS 199

200. Compensation Management
 Compensation involves recognizing employees
through financial and non-financial rewards to
ensure fair and consistent recognition of their value
to the organization.
 Compensation (Reward) Management focuses
on strategies, policies, and processes to achieve
this recognition.
MELLA TUTORIALS 200

201.  Rewards can be intrinsic or extrinsic.
 Intrinsic rewards include praise and psychological
compensation for completing projects or meeting
objectives.
 Extrinsic rewards are tangible, including both
monetary and non- monetary forms.
 Direct compensation involves monetary rewards
for work and performance,
While indirect compensation includes benefits
provided as part of organizational membership.
MELLA TUTORIALS 201

202. Base pay and variable pay are the most common forms of
direct compensation.
1.Base pay: basic compensation that an employee
receives, usually as a wage or salary.
 Wages: Payments calculated directly from the amount of
time worked by employees (Blue collar).
 Salaries: Consistent payments made each period
regardless of the number of hours worked (White collar).
2. Variable pay: Compensation linked directly to
individual, team, or organizational performance.
MELLA TUTORIALS 202

203. Employee Benefits and Services
 These are indirect form of compensation that
employees receive for being members of the
organization.
They are aimed to maintain or improve the quality of
life for employees, and providing a protection and
financial security to employees, during event that
they die, become ill, or otherwise unable to work.
MELLA TUTORIALS 203

204. • Pay for Time Not Worked: Includes paid time off,
such as rest periods, sick leave, maternity leave,
etc.
• Vacations and Holidays: Paid leave based on length
of service, with variations in policies.
• Severance Pay: One-time payment upon
termination, varying by length of service.
• Retirement Benefits: Social Security offers
retirement income, survivor benefits, and disability
benefits.
MELLA TUTORIALS 204

205. •Insurance Benefits: includes Life Insurance: Provides
financial security to dependent, and Health Insurance:
Covers medical and hospitalization costs.
•Education and Training Benefits: Support for skill
development through sponsorships, educational leave, and
scholarships.
•Service-Related Benefits: Includes housing, transportation,
counseling, discounts, and recreational services.
•Other Employee Benefits: Includes loan benefits, disability
benefits, dependent benefits, funeral benefits, pension
plans, etc.
MELLA TUTORIALS 205

206. Importance of Compensation
Management
1.Equity and Fairness:
◦Internal Equity: Ensures equal pay for equal
jobs within the organization.
◦External Equity: Ensures fair compensation
compared to similar jobs in the market.
MELLA TUTORIALS 206

207. 2.Attract and Retain Employees:
◦Attraction: Offers competitive compensation to
draw capable employees.
◦Retention: Maintains employee loyalty with
satisfactory compensation packages.
3.Motivation and Performance: Better compensation
motivates superior performance and cultivates a
high-performance culture.
MELLA TUTORIALS 207

208. 4.Rewarding Desired Behaviors: Conveys
organizational priorities through reward systems.
5.Protection and Safety: Ensures employee well-being
and safety through appropriate compensation and
benefits.
6.Industrial Relations and Organizational Image:
Improves industrial relations and public image,
enhancing the market position.
MELLA TUTORIALS 208

209. Compensation Determination
Process
1.Job Analysis: Results in job descriptions and
specifications outlining duties, responsibilities,
and requirements.
2.Job Evaluation: Grades jobs to determine their
relative value within the organization.
MELLA TUTORIALS 209

210. 3.Market Surveys: Conducts wage or salary surveys to
determine competitive pay rates.
4.Organizational Analysis: Analyzes internal factors
affecting pay structure and employee relationships.
5.Reward Structure Preparation: Decisions include
market positioning (pay leader, follower, or equal) and
pay grades.
6.Reward Administration Rules: Develops rules for
pay advancement, frequency of increases, and
promotion policies
MELLA TUTORIALS 210

211. Factors Affecting
Compensation
External Factors:
• Labor Market: Demand and supply of labor
influence wage levels.
• Cost of Living: Adjustments may be necessary
during inflation to maintain real wages.
MELLA TUTORIALS 211

212. • Labor Unions: Influence wage determination
through collective bargaining.
• Labor Laws: Regulatory requirements impacting
compensation policies.
• Economy: Economic conditions affect labor supply
and wage levels.
MELLA TUTORIALS 212

213. Internal Factors:
• Organization’s Ability to Pay: Financial health
determines wage affordability.
• Supply and Demand for Skills: Scarce skills
command higher wages.
• Psychological and Social Factors: Perceptions of
fairness and equity impact employee satisfaction.
MELLA TUTORIALS 213

214. • Business Strategy: Strategic goals influence
compensation levels and structures.
• Job Evaluation and Performance Appraisal: Assess
job worth and performance for compensation
adjustments.
• Employee Factors: Performance, seniority, experience,
and potential are key determinants.
• Job Requirements: Complexity and skill requirements
impact compensation levels.
MELLA TUTORIALS 214

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216. Human Resource Management
Chapter Eight
Integration and
Maintenances
MELLA TUTORIALS 216

217. Outline
 Employee discipline
 Labor relation
 Collective bargaining
 Grievance handling
MELLA TUTORIALS 217

218. Integration
It is important that the employee not only be able to
work, but be willing to work as well.
The integration function of HRM is the process of
reconciling organizational goals.
Integration includes managing employee relations
and maintaining good labor relations through
effective communication and negotiation.
MELLA TUTORIALS 218

219. Employee Relation
Employee relations involve the interactions
between employers (represented by management)
and the workforce (represented by labor unions).
Good employee relations are fostered by creating a
positive working atmosphere, offering attractive
rewards, providing strong leadership, and assigning
employees to interesting and challenging jobs.
MELLA TUTORIALS 219

220. Employee Relations
Objectives
Foster an atmosphere of trust, respect, and
cooperation among employees and management.
Provide a Conducive work environment that
enables employees to perform their jobs effectively.
Assist management in solving employee problems
that might affect performance.
Help employees gain control over important
aspects of their work life.
MELLA TUTORIALS 220

221. Labor Union
 Labor union is an organization of workers whose
purpose is to protect and maintain the interests of
union members.
 Unions serve as a collective voice for workers,
helping align actual and desired workplace
conditions.
MELLA TUTORIALS 221

222. Objectives of Labor
Union
 Improve Living Standards: Secure and enhance the
living standards and economic status of members.
 Guarantee Security: Ensure individual security
against market fluctuations, technological changes,
or management decisions.
 Guard Against Unfair Practices : Create mechanisms
to protect against illogical and unreliable workplace
policies.
MELLA TUTORIALS 222

223. Reasons for Joining Union
1. Dissatisfaction with wages, benefits, job security,
and supervision can drive employees to seek union
representation.
2. Belief that unions can influence workplace
conditions and increase employee influence.
3.Confidence that unions can improve working
conditions and address workplace problems.
MELLA TUTORIALS 223

224. Therefore, employees decide to join a
union for the desire of:
 Better wages, working conditions, and job security.
 Better communication with management.
 Higher quality of management and supervision.
 Increased democracy in the workplace.
 Opportunity to belong to a group
MELLA TUTORIALS 224

225. Collective Bargaining
Collective bargaining is a process that involves
the negotiation, drafting, administration, and
interpretation of a written agreement between an
employer and a union for a specific period of time.
 The end result of collective bargaining is a
contract that sets forth the joint understanding of
the parties as to wages, hours of work, and other
terms and conditions of employment
MELLA TUTORIALS 225

226. Features of Collective
Bargaining
 Group Process: Involves negotiations between
groups representing employers and employees.
 Negotiations: A key aspect of the bargaining
process.
 Bipartite Process: Involves two parties (employers
and employees/unions).
MELLA TUTORIALS 226

227. Issues In Collective
Bargaining
1.Wage/Salary-Related Issues: Base wage rates, cost-of-
living adjustments, overtime rates, etc.
2.Supplementary Economic Benefits: Pension plans, paid
vacations, health insurance, etc.
3.Institutional Issues: Rights and duties of employers,
employees, and unions; union security; quality of work
life.
4.Administrative Issues: Seniority, discipline procedures,
job security, training, etc.
MELLA TUTORIALS 227

228. Types of Bargaining
1.Distributive
bargaining;
Involves zero- sum
negotiation (win-
lose). Each party
has initial
demands, target
points, resistance
points, and
settlement ranges. 2.Integrative
bargaining:
Focuses on
mutually beneficial
solutions (win-
win). Parties aim to
find common
ground, build
relationships, and
eliminate
adversarial
elements. 3. Concessionary
bargaining:
Involves unions
conceding gains to help
employers reduce costs,
often during economic
adversity. Trust and
credibility influence
concessionary
bargaining.
MELLA TUTORIALS 228

229. Conducting Labor Contract
Negotiations
 A labor contract is a formal agreement specifying
employment conditions and the union- management
relationship over a specified period (typically 2-5
years).
Process of labor contract
negotiations
MELLA TUTORIALS 229

230. 1.Preparation and Initial Demands:
Collect data on wages, benefits, and working conditions.
Propose initial demands from both sides.
Sources of Information:
 Local and industry pay comparisons.
 Costs of current and proposed contracts.
 Employee grievances and feedback
2.Continuing Negotiation:
Determine each side's priorities and negotiate terms
accordingly.
MELLA TUTORIALS 230

231. 3.Settlement or Impasse:
 Settlement: Union members vote to ratify the
negotiated agreement.
 Impasse: Disputes may require third-party mediation
or arbitration.
 Mediation: A third party facilitates negotiation but
doesn't impose a solution.
 Arbitration: A third party makes a binding decision
after reviewing facts.
4.Strikes and Lockouts:
Strike: Union members refuse to work to pressure the
employer.
Lockout: Employer prevents employees from working.
MELLA TUTORIALS 231

232. Grievance Handling
 A grievance is a formal complaint regarding the
event, action, or practice that violated the labor
contract .
 A complaint becomes grievance when the
employee feels that an injustice has been committed.
o Complaint: Indication of employee
dissatisfaction.
o Grievance: Complaint formally stated in writing
MELLA TUTORIALS 232

233. Steps of grievance
handling
1.Receive and Define the Issue: Listen to
employee concerns without prejudice.
2.Gather Facts: Separate facts from opinions and
impressions.
3.Analyze and Decide: Assess the situation and
make a decision.
4.Apply the Decision: Implement the resolution.
5.Follow Up: Ensure the grievance has been
adequately addressed.
MELLA TUTORIALS 233

234. Maintenance
Involves the ongoing
continuation of all HR
functions.
It includes
communication and
counseling to maintain
employee attitudes.
Disciplinary
Action
Actions taken against
employees violating rules or
exhibiting poor performance.
Causes of Disciplinary
Actions
Poor job performance or
conduct.
Actions indicating poor
citizenship (e.g., theft,
fighting).
MELLA TUTORIALS 234

235. Discipline Process
1.Establish Performance
Requirements: Define work
rules through performance
appraisals and employee
input.
2.Communicate Rules:
Clearly explain rules and
policies through
orientations, manuals, and
other channels.
3.Apply Corrective Action:
Address performance issues
or rule violations
Administering Discipline
• Administer discipline
promptly and consistently
without emotional bias.
• Provide warnings and
document infractions.
• Maintain consistency to
prevent morale issues and
grievances.
• Use corrective or progressive
discipline, such as warnings,
suspension, or discharge, as
needed.
MELLA TUTORIALS 235

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237. Human Resource Management
Chapter Nine
Promotions Transfers and
Separation
MELLA TUTORIALS 237

238. Promotion
An improvement in pay, prestige, position and
responsibilities of an employee within his/her
organization.
A promotion is a move to a higher-level job with
more authority, responsibility and pay
MELLA TUTORIALS 238

239. Purposes of Promotion
 Motivate employees to higher productivity
 Attract and retain competent employees
 Recognize and reward the efficiency of an employee
 Increase the effectiveness of the employee.
 Fill up higher vacancies from within the organization
 Build loyalty, morale, and sense of belongingness.
 Impress upon others that opportunities are available
to them too in the organization, if they perform well
MELLA TUTORIALS 239

240. Types of Promotion
1. Vertical Promotion
 Results in greater responsibility, prestige and pay,
together with a change in the nature of the job.
 Employees are promoted from one rank to the
next higher rank in the same department.
MELLA TUTORIALS 240

241. 2. Horizontal Promotion
Involves an increase in responsibilities and pay,
and a change in designation/title.
 Employees may be promoted to higher ranks in
other departments as well.
 These promotions work well to reward tenure, no
change to the role itself.
 Junior to senior, There is no greater authority.
MELLA TUTORIALS 241

242. 3. Dry Promotion
 Worker are moved to higher subsequent level
hierarchy with greater power, responsibility, position
and no increase salary .
 For example, when a university professor is made
Head of the Department, there is no increase in
salary
MELLA TUTORIALS 242

243. Transfers
o A transfer involves a change in the job of an
employee without a change in responsibilities or
remuneration.
o Transfer isa change in job where the new job is
substantially equal to the old in terms of pay, status,
and responsibilities.
MELLA TUTORIALS 243

244. Promotion Vs Transfer
 Promotion - significant increase in responsibility,
status, and income occurs, but all these elements are
stagnant in the transfer.
 Another difference is that transfers are regular and
frequent, but promotions are infrequent.
MELLA TUTORIALS 244

245. Reasons for Transfer
Surplus department to another department where
there is a shortage of staff.
Removal of the incompatibilities between the workers
and his or her boss.
Correction of faulty initial placement of an employee.
A change has taken place in the interests and
capacity of an individual.
The climate may be unsatisfactory for an employee’s
health, and Family related issues cause transfers
MELLA TUTORIALS 245

246. Types of transfers
1.Production transfers
 Being made for filling the position in such
departments having lack of staff, from the
departments having surplus manpower .
 It prevents the layoff of the organization and it
is good to adjust existing staff than to hire the new
staff.
MELLA TUTORIALS 246

247. 2. Replacement Transfers
 An employee with a long service may be transferred in
some other department to replace a person with a shorter
service. When an employee leaves a department for a
particular reason, the department needs a replacement.
Versatility transfers are effective to make employees versatile and
competent in more than one skill. This is used as training device.
3. Versatility transfer
MELLA TUTORIALS 247

248. 4. Shift transfers
 Employees are transferred from one shift to anther due to
their personal reasoning like health problem or evening
college for higher studies or any family problems.
5. Remedial Transfer
Remedial transfers are effective at the request of
employees are called personal transfers. It refers to
rectification of wrong selection or placement
employees.
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249. 6. Miscellaneous Transfers
 Transfers may also be classified as temporary or
permanent transfers.
o If a transfer is from one department to another, it is known
as departmental transfer.
o If a transfer is made within the department, such a
transfer is known as sectional transfer.
o If an employee is transferred from one plant to another
plant. Such a transfer is known as inter- plant transfer .
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250. Separations
Separation refers to employee leaving the
organization.
It is called “negative recruitment
It may take the form of retirement, either
compulsory or voluntary, resignation, dismissal, lay-
off or retrenchment.
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251. There may be many causes of separation.
1.Unavoidable Causes of employee separation include:
Employee preferences, incompetence, and poor health
2. Avoidable Causes of employee separation can include:
•Incompatibility with peers or supervisors
•Lack of interest or aptitude for the job
•Concerns about career prospects
•Changes in technology or product mix
•Variations in production volume
•Poor working conditions
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252. A. Lay-offs
Layoffs are often temporary and employees may be
brought back if conditions improve.
A company that is losing money may need to downsize,
or reduce the number of employees because of;
Shortage of raw material
Accumulation of stock
Breakdown of machinery or for any other reason
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253. B. Resignations
 An employee resigns when he or she secures a
better job elsewhere, or when an employee suffers
from ill health, and for other reasons
 Such process by employee can be in either of the
following two ways voluntary resignation and
induced resignation .
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254. 2. Induced resignation
Induced resignation: Leaving the organization due to
disciplinary issues or serious charges, often under
persuasion.
1.Involuntary resignation
Involuntary resignation: Leaving the organization due to
personal reasons such as lack of promotions, better job
opportunities, health issues, or job dissatisfaction.
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255. C. Dismissal
o Dismissal: Termination of employment as
punishment for major offenses.
o Reasons for dismissal include:
o Excessive absenteeism
o Serious misconduct
o False qualifications
o Theft of company property
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256. D. Retrenchment
Retrenchment: Termination of employees due to
labor being replaced by machines or department
closure from low product demand.
It's an economic decision, not disciplinary.
Employees are entitled to gratuity and compensation.
The general principle is "last in, first out" (LIFO).
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257. Retrenchment differs from lay-off as it permanently
ends the employee's connection with the company,
while a lay-off keeps the employee on the company's
books with a guarantee of rehire.
Retrenchment differs from dismissal in that dismissal
is due to an employee's fault, while retrenchment is a
broader, involuntary measure affecting multiple
employees. Dismissal usually involves just one or
two employees.
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258. E. Retirement
There are two main types of retirement:
1.Compulsory Retirement: Employees are retired
when they reach a specified age, typically between
60 and 65.
2.Voluntary Retirement Scheme (VRS): Employees
are offered attractive compensation to voluntarily
leave the company. This scheme, also known as the
Golden Handshake Plan, helps reduce surplus labor
without formal retrenchment.
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259. For more educational videos please subscribe the
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MELLA TUTORIALS 259
Mella Tutorials
A hub of wisdom.

260. Chapter Ten
Contemporary issues in
HRM
Sexual harassment in work place, e-
human resource management &
empowerment.
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261. Managing Workforce
Diversity
Diversity refers to the differences among people,
including demographic variations in the workforce.
Today’s workforce is more racially diverse, includes
more women, and has a wider age range.
HR management must adapt to these shifts both
externally and internally.
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262. 262
As used by most employers and enforcement agencies,
the concept of diversity typically includes the following
dimensions:
 Age
 Race/ethnicity
 Gender
 Sexual orientation
 Disabilities
 Marital and family status
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263. 263
 Managing diversity involves addressing concerns
raised by protected groups and others.
 Two common issues are perceived hostile
organizational cultures and stereotyping.
◦ Many individuals from protected groups feel they
face hostile environments, such as women believing
they must outperform men to advance.
◦ Stereotyping often stems from past negative
experiences and limited interactions with specific
groups.
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264. Equal Employment
Opportunity (EEO)
 Even if an organization has little regard for the
principles of diversity, it must follow EEO laws and
some affirmative action regulations to avoid costly
penalties.
 Employers are expected to use job-related
employment practices.
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265. EEO Concepts
 Business necessity involves practices essential for
safe and efficient operations, like specific
educational requirements, and prohibits
discriminatory staffing practices such as "males only"
or "no applicants with accents."
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266. 266
 Bona Fide Occupational Qualifications (BFOQ) disallow
for discrimination based on sex, religion, or national
origin only if it is essential for the normal operation of the
business.
 Disparate treatment occurs when protected-class
members are treated differently from others, while
disparate impact occurs when employment decisions
lead to significant underrepresentation of protected-class
members.
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267. 267
In discrimination cases, the burden of proof is on the
individuals filing the suit to show that illegal
discrimination has occurred.
 Non-retaliatory treatment means employers must not
punish those who file discrimination charges, with
retaliation occurring if adverse actions are taken
against individuals exercising their legal rights.
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268. Sexual Harassment in
work place
EEO guidelines aim to prevent sexual harassment,
which includes unwanted sexual actions that create a
hostile work environment or negatively affect
employment conditions.
Over 90% of sexual harassment charges involve
men harassing women, though cases of men
harassing female managers and same-sex
harassment also occur.
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269. Types of sexual harassment
1.Quid Pro Quo: This occurs when employment
outcomes depend on the individual granting
sexual favors. For example, an employee might be
promised a promotion, raise, or desirable work
assignment in exchange for sexual favors.
2.Hostile Environment: This happens when
intimidating or offensive working conditions
negatively impact an individual's work
performance or psychological well-being. This
type is more common due to its varied standards
and consequences
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270. 270
What Managers Should Do: Remedies
To ensure reasonable care, managers should:
 Establish a clear sexual harassment policy.
 Communicate the policy regularly to all employees.
 Provide training for employees and managers on
preventing sexual harassment.
 Investigate complaints promptly and take appropriate
action.
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271. E-HRM
 When HR departments use the Internet and related
technologies to support their activities, it is called e-HRM.
 E-HRM integrates all HR systems and processes using
common HR data and interdependent tools.
 Fully developed e-HRM provides data gathering,
analysis, and decision support for HR tasks like hiring,
paying, promoting, terminating, assigning, developing,
appraising, and rewarding employees.
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272. 272
E-HRM Potential Changes to Traditional HRM Functions:
1.Analysis and Design of Work: Employees in different
locations can collaborate using video, email, and the
Internet.
2.Recruiting: Job openings can be posted online, and
candidates can apply online.
3.Selection: Online simulations, tests, videos, and
emails can assess candidates' abilities for real-life
business challenges.
4.Training: Online learning allows employees to access
training anytime, anywhere.
5.Compensation and Benefits: Employees can review
salary and bonus details, seek information about
benefits, and enroll in benefit plans online.
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273. A Safe and Healthy Work
Environment
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274. The Nature and Role of
Safety and Health
Safety: Protecting
employees from injuries
caused by work- related
accidents
274
Health: Employees'
freedom from physical or
emotional illness
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275. General Duty
Clause
Employers have
responsibility to furnish a
workplace free from
recognized hazards that are
causing or are likely to cause
death or serious physical
harm.
Safety: Economic
Impact
Job-related deaths and
injuries extract high toll in
terms of human misery.
Everyone affected (directly
or indirectly) by deaths and
injuries
275
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276. Focus of Safety Programs
Safety programs may accomplish
their purposes by addressing:
1.Unsafe employee actions
2.Unsafe working conditions
276
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277. Unsafe Employee Actions:
Prevention
 Create psychological environment and employee
attitudes that promote safety
 Training and orientation of new employees
emphasizing safety
 Attitude must permeate the firm’s operations
 Strong company policy emphasizing safety and
health
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278. Unsafe Working
Conditions: Prevention
 Develop and maintain a safe
physical working environment
 Altering the environment
becomes the focus
 Create a physical environment in
which accidents cannot occur
278
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279. Developing a Safety
Program
 Employee involvement: Include employees; gives
sense of accomplishment
 Safety engineer: Staff member who coordinates
overall safety program
 Accident investigation: Safety engineer and line
manager investigate accidents
279
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280. Thank You !!!
21MELLA TUTORIALS