Human Resource Management : For VTU

489 Pages·2011·2.897 MB·English

by  Pravin Durai

Human
Resource
Management
Pravin Durai
Associate Professor
St Joseph’s College (Autonomous)
Tiruchirappalli
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To
My Parents
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Contents
Preface vii Limitations of Job Design 54
About the Author ix Recent Trends in Job Design 55
3 Human Resource Planning 60
PART I HUMAN RESOURCE MANAGEMENT—
A CONCEPTUAL FRAMEWORK 1 Introduction 61
1 Introduction to Human Resource Characteristics of Human Resource
Planning 62
Management 1
Signifi cance of Human Resource
Introduction 1
Planning 62
Meaning of Human Resources 2
Factors Aff ecting Human Resource
Uniqueness of Human Resources 3 Planning 65
Objectives of HRM 4 Human Resource Planning
Scope of HRM 5 Process 67
Functions of HRM 6 Requirements for Eff ective HR
HRM and Personnel Management Planning 78
(PM) 10 Benefi ts of HR Planning 78
HRM as a Profession 11 Barriers to the HR Planning Process 79
Qualities of an HR Manager 13 4 Recruitment 83
Line Versus Staff Authority of HRM 14
Introduction 84
Th e Future Role of HRM 16
Defi nitions of Recruitment 84
Features of Recruitment 84
PART II HR PROCUREMENT 22
Recruitment Policy 85
2 Job Analysis and Design 22
Recruitment Organization 87
Introduction 23
Recruitment Process 88
Features of Job Analysis 23
Steps in the Recruitment Process 88
Important Terms in Job Analysis 24
Sources of Recruitment 90
Goals of Job Analysis 25
Recruitment Practices in India 98
Job Analysis Process 29
5 Selection 102
Techniques of Data Collection in
Introduction 102
Job Analysis 32
Diff erences Between Recruitment
Job Description 37
and Selection 103
Job Specifi cation 39
Phases of the Selection Process 103
Challenges Aff ecting the Eff ectiveness
Employment Application Forms/
of Job Analysis 41
Blanks 105
Job Design 43 Selection Tests 107
Environmental Infl uence on the Job Th e Selection Interview 112
Design 44
Strategy for an Eff ective Interview
Critical Components of Job Design 48 Process 115
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iv CONTENTS
Weaknesses of the Interview Assessing Training Needs 161
Method 116 Scope of Training 163
Reference Checks 117
Steps in an Employee Training
Physical Examination 117 Process 164
Job Off er 118 Methods of Training 167
Th e Selection Process in India 118
Audio-visual Aids in Training 172
6 Orientation, Socialization and Evaluation of a Training
Placement 122 Programme 172
Introduction 123 Design of Evaluation Studies 173
Purpose of Employee Orientation 124 Eff ects to be Measured in
Evaluation 174
Types of Orientation 125
Issues in Training 174
Process of Orientation Programme
Development 127 Conditions Necessary for an Eff ective
Training Programme 175
An Eff ective Orientation
Programme 129 E-learning—An Overview 176
Problems in Orientation 131 9 Management Development 182
Socialization 132 Introduction 183
Diff erences Between Orientation and Signifi cance of Management
Socialization 133 Development 184
Th e Socialization Process 133 Goals of Management
Dimensions of Organizational Development 184
Socialization Strategies 135 Steps in a Management Development
Process 185
Placement 136
Methods of Management
Development 186
PART III HUMAN RESOURCE
Evaluation of the Development
DEVELOPMENT 140
Programme 191
7 Career Planning and Guidance 140 Management Succession Planning 192
Introduction 140

PART IV HR EVALUATION AND
Features of Career Planning 141
COMPENSATION 198
Objectives of Career Planning 142
10 Performance Evaluation and Job
Important Terminology Used in Career
Planning 142 Evaluation 198
Process of Career Planning 144 Performance Evaluation: An
Responsibility for Career Planning and Introduction 199
Development 148 Performance Evaluation: An
Overview 199
Merits of Career Planning 149
Performance Management: An
Limitations of Career Planning 151
Overview 200
Measures to Improve the Eff ectiveness of
Objectives of Performance
Career Planning 152
Evaluation 200
Career Guidance 154
Uses of Performance Evaluation 201
8 Employee Training 158 Determining the Criteria for Performance
Evaluation 204
Introduction 159
Th e Process of Performance
Signifi cance of Employee Training 159 Evaluation 205
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CONTENTS v
Selection of the Evaluator for Conducting

P ART V HR MAINTENANCE AND
the Performance Evaluation 207
MOTIVATION 296
Performance Evaluation Methods 209
Issues in Performance Evaluation 221 13 Employee Well-Being 296
Steps to Overcome the Problems in the Introduction 297
Evaluation Process 223
Objectives for Providing Employee
Th e Post-performance Evaluation Safety 297
Interview: An Overview 223
Steps in an Employee Safety
Job Evaluation 224 Programme 298
Characteristics of Job Evaluation 225 Need for Employee Safety 300
Objectives of Job Evaluation 225 Essentials of an Eff ective Safety
Th e Job Evaluation Process 225 Programme 301
Methods of Job Evaluation 227 Statutory Provisions Concerning
Benefi ts of Job Evaluation 231 Employee Safety and Health 303
Limitations of Job Evaluation 232 Behaviour-based Safety Management
and Approach 304
Measures to Enhance the Eff ectiveness of
Job Evaluation 233 Industrial Accidents 305
Employee Health 310
11 Compensation Administration 238
Stress 311
Introduction 239
Stress Management 315
Objectives of Compensation
14 Employee Welfare and Social
Administration 239
Security 320
Types of Compensation 241
Introduction 321
Th eories of Compensation 243
Features of Employee Welfare 321
Concept of Wages 245
Objectives of Employee Welfare 322
Pay Structure 246
Types of Welfare Measures 323
Factors Infl uencing Compensation (Wages
and Salary) Administration 250 Employee Welfare Responsibility 326
Steps in Compensation Th eories of Employee Welfare 328
Administration 254 Merits of Welfare Measures 330
Challenges in Compensation Limitations of Welfare
Administration 256 Measures 331
Executive Compensation 258 Social Security 332
12 Incentives and Benefi ts 267 15 Workers’ Participation and
Empowerment 341
Introduction 268
Objectives of Wage Incentives 268 Introduction 342
Th e Wage Incentive Planning Features of WPM 342
Process 269 Objectives of WPM 343
Prerequisites for a Good Incentive Levels of WPM 344
Scheme 271
WPM Methods 344
Types of Incentive Schemes 274
Achieving WPM 345
Evaluation of Wage Incentive
Essential Prerequisites for
Schemes 288
Eff ective WPM 349
Fringe Benefi ts 290
Signifi cance of WPM 350
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vi CONTENTS
Obstacles Faced by Eff ective WPM 351 Douglas McGregor’s Hot Stove Rule of
Employee Empowerment 352 Discipline 413
Code of Discipline 413
16 Job Rotations 360
19 Employee Grievances 417
Introduction 361
Introduction 417
Characteristics of Promotion 361
Characteristics of Grievances 418
Objectives of Promotion 362
Sources of Grievance 418
Criteria for Promotion 362
Techniques of Grievance
Kinds of Promotion 365
Identifi cation 420
Essentials of a Sound Promotion
Th e Grievance Procedure 422
Policy 366
Essentials of a Good Grievance
Demotion 367
Procedure 426
Transfer 369
Benefi ts of the Grievance Redressal
Employee Separation 371 Procedure 427
Statutory Provisions Concerning the

PART VI HR INTEGRATION 378 Grievance Redressal Procedure in
India 428
17 Industrial Relations 378
Th e Model Grievance Procedure 428
Introduction 378
P ART VII HR SPECIAL TOPICS 432
Characteristics of Industrial
Relations 380
20 Ethical Issues in Human
Objectives of Industrial Relations 380
Resource Management 432
Major Players in Industrial
Introduction 432
Relations 381
Types of Ethics 434
Approaches to the Study of Industrial
Ethics and Human Resource
Relations 383
Management 434
Industrial Relations Trends 388
Need for Ethical Policies and Codes 435
Factors Infl uencing Industrial
Approaches to Ethical Issues in
Relations 390
Organizations 436
Essentials of Eff ective Industrial
Factors Infl uencing Ethical Behaviour at
Relations 391
Work 438
18 Discipline and Disciplinary Role of HRM in the Development of
Action 394 Ethical Behaviour 440
Introduction 394 International Business Ethics 443
Guidelines for International Business
Characteristics of Employee
Organizations on Ethical Issues 444
Discipline 395
Ethical Dilemma in Global Wage
Objectives of Discipline 396
Payment 445
Types of Discipline 398
Miscellaneous Topics 448
Symptoms and Causes of
Indiscipline 402 Human Resource Policies 448
Types of Disciplinary Action 406 Cost-Benefi t Analysis of Recruitment
Steps in Establishing a Disciplinary Sources 449
Action Procedure 408 Employee Mobility 450
Essential Steps to Enhance the Employee Attrition 453
Eff ectiveness of Discipline Meetings 410
Case Studies 457
Elements of a Good Disciplinary
System 411 Model Question Papers 475
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Preface
During the course of my teaching and research career of more than twenty years, I have seen the emergence
of a workforce that is a well-informed, dynamic and diverse entity. To be successful in eff ectively handling
such a workforce, employers, managers and supervisors need to be up to date with the current trends as well
as possess a strong theoretical foundation of human resource practices. Th e contents of Human Resource
Management have been developed, therefore, to provide students as well as practicing managers with all-
inclusive, multifaceted information in a highly readable and understandable form. Besides adopting a user-
friendly format, each chapter in the book has several unique real-life examples to support its theoretical
discussion and help readers understand the subject matter easily.
Organization
Th is book has 20 chapters to enable readers gain complete insights into the diff erent domains of HRM. Based
on the role and responsibilities of HR managers, these chapters are divided into seven parts. Th e parts and
their purposes are:
Part I—Human Resource Management—A Conceptual Framework familiarizes the reader with the
elements of human resource management.
Part II—Procurement provides an insight into the topics connected with recruitment, selection and placement
of human resources in the organization. Th us, this part includes job analysis, HR planning, recruitment,
selection and placement, orientation and socialization.
Part III—Development focuses on the topics relating to employee training and management development.
Th e areas of discussion under this part are career planning and development, employee training, man-
agement development.
Part IV—Evaluation and Compensation comprehensively deals with the core and critical areas of HR man-
agement such as employee performance evaluation, compensation administration, and incentives and
benefi ts management.
Part V—Maintenance and Motivation discusses matters relating to employee motivation and retention.
Th is part covers employee well-being, employee welfare and social security, workers’ participation and
empowerment, and job rotations.
Part VI—Integration off ers an insight into the activities that foster employer-employee relations. Th is part
thus includes chapters on industrial relations, discipline and disciplinary action, employee grievance.
Part VII—Special Topics discusses in detail the emerging areas of human resource management such as
ethical issues in human resource management and international human resource management.
Miscellaneous Topics discusses assorted topics such as human resource policies, cost-benefi t analysis of
recruitment sources, employee mobility and employee attrition.
Each part in this book received equal weightage in terms of treatment and coverage. Th us, the readers will
fi nd an elaborate discussion even on newer areas of human resource management.
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viii PREFACE
The Teaching and Learning Package
A full range of resources that support teaching and learning is available on the companion Web site of this
book.
• PowerPoint lecture slides provide the outlines and key topics of each chapter
Feedback
To share your feedback on this book, readers can write to me at pravindurai@rediff mail.com
ACKNOWLEDGEMENTS
I express my deep sense of gratitude to everyone who helped me in their own way in writing this book.
I gratefully acknowledge all institutions like Ashok Leyland, Dorling Kindersley, Infosys, Mind Tools
Limited, the Ministry of Labour of the Government of India, Political and Economic Risk Consultancy, Tata
Services Limited, the Reserve Bank of India, and Tube Investments of India Limited for their permission to
use information pertaining to them in this book. I also thank Ankush Gupta for his permission to utilize
excerpts from his article in Chapter 19 of this book. Similarly, I am indebted to all the reviewers for their
feedback and valuable suggestions.
I sincerely thank the Jesuit management of St. Joseph’s College (Autonomous), Tiruchirappalli, for pro-
viding me with a supportive work environment that enabled me to write this book.
I have no words to express my gratitude to my wife, Pramila Pravin, who painstakingly ensured that I was
not troubled by my family commitments while writing this book. I would like to express my appreciation for
my children, Ashwin and Sherine, for their love and aff ection.
Finally, I express my gratitude to Pearson Education for publishing this book. Amarjyoti Dutta and Jonaki
Ray deserve a special mention for their sustained interest and worthy suggestions in the manuscript develop-
ment. I welcome any critical reviews and feedback from readers, and would consider those as the real reward
for writing this book.
Pravin Durai
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About the Author
Pravin Durai is Associate Professor, Department of Commerce at St. Joseph’s C ollege
(autonomous), Tiruchirappali. He is also a visiting faculty at the Tiruchirappalli
branch of Southern India Regional Council of Institute of Chartered Accountants of
India (ICAI) and St. Joseph’s Institute of Management, Tiruchirappalli. He is a mem-
ber of the board of studies for M. Com. Courses at the Bharathidasan University. He
is also a member of the one-man commission of the Bharathidasan University for
granting recognition to M.Phil and PhD programmes of its affi liated colleges. He is
the coordinator of the Micro Quality Assurance Cell (MQAC) at St. Joseph’s College,
Tiruchirappalli.
Dr Durai has received master’s degrees in commerce and business administra-
tion as well as a Ph. D. in organizational behaviour. He has more than twenty years of
teaching and research experience and has published many articles in r eputed j ournals.
He has produced three doctorates and over 25 M.Phil Graduates. He has success-
fully completed a UGC sponsored research project on the problems of H andloom
Weavers in TamilNadu. He is one of the authors of a custom book- Management-II
for Gujarat Technological University (GTU) published by Pearson Education.
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