Unit: 1

concepts

Human resources may be defined as the

total knowledge, skills, creative abilities,
talents and aptitudes of an organizations
workforce, as well as the values, attitudes,
approaches and beliefs of the individuals
involved in the affairs of the organization.
It is the sum total or aggregate of inherent
abilities, acquired knowledge and skills
represented by the talents and aptitudes of
the persons employed
in
the
organization.
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definition
HRM is a distinctive approach to employment
management
which
seeks
to
achieve
competitive advantage through the strategic
deployment of a highly committed and capable
workforce, using an array of cultural, structural
and personnel techniques. (Storey,1995).
HRM is a managerial perspective which argues
the need to establish an integrated series of
personnel policies to support organizational
strategy. Buchanan and Huczynski, 2004).
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Area/components

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Nature of HRM

Broader Function
People Oriented
Action Oriented
Development Oriented
Continuous Function
Future Oriented

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Objectives of HRM
To help the organization reach its goals.
To ensure effective utilization and maximum
development of human resources.
To ensure respect for human beings. To
identify and satisfy the needs of individuals.
To ensure reconciliation(consistence) of
individual goals with those of the
organization.
To achieve and maintain high morale
among employees.
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Objectives of HRM
To provide the organization with welltrained and well-motivated employees.
To increase to the fullest the employees
job satisfaction and self-actualization.
To develop and maintain a quality of work
life.
To be ethically and socially responsive to
the needs of society.
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Functions of HRM
Human resource or manpower planning.
Recruitment, selection and placement of
personnel.
Training and development of employees.
Appraisal of performance of employees.
Taking corrective steps such as transfer
from one job to another.
Remuneration of employees.
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Functions of HRM
Social security and welfare of employees.
Setting general and specific management
policy for organizational relationship.
Collective bargaining, contract negotiation
and grievance handling.
Staffing the organization.

Aiding in the self-development of

employees at all levels.
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Figure

Managerial

Planning,
organizing, staffing,
directing, controlling

Operative

Employment,
training and
development,
remuneration,
working condition,
motivation

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Advisory

Advice to top
management,
advice to
department
head

Differences Between Personnel Management

& HRM
Dimension
Contract
Rules

PM
Written contracts
Strict with rules
and regulation

HRM
Beyond contracts
desire for change
and excitement

Behavior norms

Customs &
practices

Values / mission

Managerial task
with respect to
labor

Monitoring

Nurturing

Key relations

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Customer
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Differences Between Personnel Management

& HRM
Dimension
Speed of decision
Management role
Job design
Training &
development

PM
Slow
Transactional
Division of labor
Controlled access

HRM
Fast
Transformational
Teamwork
Learning
organizations

Conflict handling

Temporary
solutions

Manage climate &

culture

Management
action

Clear rules

Need based

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Significance/Importance of HRM

Corporate Level
Significance at Professional Level
Significance at Social Level
Significance at National Level

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The changing world of work and the

changing role of HR Professionals

The Changing Role of the HR Function.

Change in Conception from Reactive to
Proactive.(acting in advance)
The HR Professionals and Demand for HR
courses.
HR Professionals Have Fun as Well.

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HR System
EXTERNAL ENVIRONMENT
THREATS AND OPPORTUNITIES

INPUT

PROCESS

INTERNAL

OUTPUT

ENVIRONMENT

STRENGTHEN AND WEAKNESSES

FEEDBACK

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Changing Role of HRM in Nepalese

Organization

HR and boosting productivity

HR and responsiveness
HR and services
HR and employee commitment
HR and corporate strategy

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Human Resource Management from an

International Perspective

Cultural Diversity
Workforce Diversity
Language Diversity
Economic Diversity

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Ethical Issues in HR

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HRM & HRD

Some organizations use HRM & HRD

interchangeably.
HRD is the developmental aspect of
HRM. Hence HRD is a part of HRM.
HRD deals with the training, management
development,
career
planning
&
development
and
organization
development.
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Role of HR Manager
The conscience role reminding the
managements of its moral obligations to its
employees.
The counselor role counselling the employees
and offering suggestions to solve the problems of
the employees like marital, health, children
education etc to enable the employees
concentrate on their work.
The mediator role settling the disputes
between employees and the management by
acting as a communication link between them.
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Role of HR Manager

The spokesperson role representing the

company to the outside agencies.
The problem solver role solving the
issues that arise from time to time.
The change agent role introducing
changes in the existing programmes.

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Qualities of HR Manager

Initiative & resourcefulness

Analytical ability
Depth of perception
Knowledge of labor laws
Understanding of human behavior
Communication skills
Discriminating skills
Professional attitude
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Unit: 2
Planning

HR

Strategic planning is the basis for human

resources planning. The HR manager has
to understand the companys strategies
and their demand for human resources
before carrying out HR planning.
For Expansion Strategy, the HR planning
needs to concentrate on additional human
resources of existing categories.
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HR Planning
For Diversification Strategy, the HR planning
needs to concentrate on additional human
resources of different categories.
In case of Acquisitions & Mergers, the HR
planning has to work on reduction of human
resources of managerial positions.

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IMPORTANCE OF HRP
It offsets uncertainty and change.
It provides scope for advancement and
development of employee through T &D.
It facilitates the formulation of budgets in an
organization.
It helps to plan for the physical facilities and
working conditions.
It helps to take steps to improve the employee
contributions in the form of increased
productivity, sales turnover etc.
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Steps in the HR Process

Evaluate present manpower inventory
Manpower forecasting
Develop a manpower sourcing plan or
retrenchment plan
Manpower allocation
Building requisite competencies

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HRP IN NEPAL
Poor tradition of HRP
Lack of assessment of current human
resource
Missing demand forecast
Missing supply forecast
Mismatch of demand and supply
Over staffing and under staffing
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HUMAN RESOURCE INFORMATION SYSTEM

(HRIS)

It is a system designed to supply

information
required
for
effective
management of human resources in an
organization.
A Computerized HRIS is designed to
monitor, control and influence the
movement of people from the time they join
the organization till the time they separate
from the organization.
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HR INVENTORY
Human Resources Inventory is an inventory of
skills of human resources currently employed in
the organization. It tells management what
individual employees can do.
The profile of the human resource inventory can
provide information for identifying current or future
threats to the organization's ability to perform.
It is necessary for a firm to identify the current
capability and skills of their employees.
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HR INVENTORY
A competency mapping or skill inventory
evaluates all aspects of the person with
respect to the job role to be performed by
the person. It evaluates knowledge, skills,
attitude, reflection of attitude that is
behavior and possibly values where as
skill mapping is restricted to just that skill.

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HR INVENTORY
Skills can be developed through paid and
unpaid work experiences, volunteerism,
hobbies, work experiences, and through
everyday experience in life.
A skills inventory report shows an
employee which skills he or she
possesses and at what proficiency level.
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Succession planning
Succession planning is nothing more than
having a systematic process where
managers identify, assess and develop their
staff to make sure they are ready to assume
key roles within the company.
Having this process in place is vital to the
success of the organization because the
individuals identified in the plan will
eventually be responsible for ensuring the
company is able to tackle future challenges.
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Succession planning
These "high potential" candidates must be
carefully selected and then provided training
and development that gives them skills and
competencies
needed
for
tomorrow's
business environment. Another reason its
important is because these high potentials will
one day become the leaders of the Company.
This is why their development needs to
incorporate a broad range of learning
opportunities in your organization.
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Forecasting methods
Expert Forecasts: This includes formal
expert surveys, informal decisions and the
Delphi technique.
Trend Analysis: Manpower needs can be
seen through the past practice of the firm
or organization keeping the principle year
as a basis and a central tendency of
measure.
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Forecasting methods
Work Load Evaluation: This depends
on the nature of the work load in a
branch, department, or a division in a firm
or organization.
Work Force Evaluation: As production
and the time duration are to be kept in
mind, allotments have to be made for
getting the total manpower requirements.
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JOB ANALYSIS, JOB SPECIFICATION AND JOB

DESCRIPTION
Job analysis is the systematic study of jobs to
identify the observable work activities, tasks, and
responsibilities associated with a particular job
or group of jobs.
Job analysis is primary tool in personnel
management. In this method, a personnel
manager tries to gather, synthesize and
implement the information available regarding
the workforce in the concern.
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JA Methods

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PURPOSE OF JA

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Two outcomes of JA

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Process of Job Analysis

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Job Design
Job design is defined as the process of deciding
on the content of a job in terms of duties and
responsibilities of the job holders, on the
methods to be used in carrying out the job, in
terms of techniques, systems and procedures
and on the relationships that should exists
between the job holder and his superiors,
subordinates and colleagues. Factors affecting
job
design
are
organizational
factors,
environmental factors and behavioral factors.
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Job Design Objectives

1. To meet the organizational requirements

such as higher productivity, operational
efficiency, quality of product / service.
2. To satisfy the needs of the individual
employees like interests, challenges,
achievement etc.
3. To integrate the needs of the individuals
with the organizational requirements.
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Recruitment
Recruitment is defined as a process to discover
the sources of manpower to meet the
requirements of the staffing schedule and to
employee effective measures for attracting that
manpower in adequate numbers to facilitate
effective selection of an efficient workforce.
Recruitment is the process of searching for
prospective employees and stimulating them to
apply for jobs in the organization.
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Recruitment
Difference between recruitment & selection.
Recruitment precedes selection and it is only finding
and developing the sources of prospective
employees and attracting them to apply for jobs in
an organization.
Selection is the process of finding out the most
suitable candidate to the job out of the candidates
attracted i.e. recruited.
Determining the number and kind of human
resources required is the first step in employment
process and is known as HRP. The second step is
recruitment and the third step is selection.
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Sources of Recruitment

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Sources of Recruitment

A. Internal sources
1. Present employees
2. Retrenched / retired employees
3. Empyoee referrals

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Sources of Recruitment
B.
1.
2.
3.
4.
5.
6.
7.
8.

External sources
Campus recruitment
Private employment agencies / consultants
Public employment exchanges
Professional organization
Data banks
Casual applicants
Similar organizations
Trade unions
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Why Prefer Internal Sources?

1. Can be used as a technique of motivation

2. Can improve the morale of the employees
3. Suitability of internal candidates can be
judged easier and better.
4. Loyalty, commitment and the sense of
belongingness of present employees can be
enhanced.
5. Employees physiological needs can be met
by providing opportunities for advancement.
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Why Prefer Internal Sources?

6. Employees economies needs for

promotion, higher income can be
satisfied.
7. Cost of selection can be minimized.
8. Cost of training and orientation can be
reduced.
9. The period of adaptability to the new job
can be reduced.
10. The trade unions can be satisfied.
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Modern Sources of Recruitment

1.
2.
3.
4.
5.
6.
7.

Employee referrals
Walk-in
Consult-in
Head hunting
Mergers and acquisitions
E-recruitment
Outsourcing
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Recruitment Techniques

Recruitment techniques are the means or

media by which management contacts
prospective employees or provides
necessary information or exchanges ideas
in order to stimulate them to apply for jobs.
Management uses different types of
techniques to stimulate internal & external
candidates.
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Recruitment Techniques
A.
1.
2.
3.

Traditional techniques
Promotions
Transfers
Advertising

B.
1.
2.
3.

Modern techniques
Scouting (searching)
Salary and perks
ESOPs
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Recruitment Process
Recruitment process is the process of identifying and
attracting job seekers so as to build a pool of qualified
job applicants.
An ideal recruitment programme is the one that attracts a
large number of qualified applicants who will survive the
screening process and accept positions when offered.
The individuals responsible for the recruitment process
must know how many and what type of employees are
needed, where and how to look for individuals with the
appropriate
qualifications
and
interests,
what
inducements to use for various types of applicant groups.

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Recruitment Process

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Recruitment Process

1.
2.
3.
4.
5.

The recruitment process comprises five

interrelated stages:
Planning
Strategy development
Searching
Screening
Evaluation and control
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Recruitment Process

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Selection
Selection is the process by which an
organization chooses from a list of applicants
the person or persons who best meet the
selection criteria for the position available,
considering current environmental conditions.

Identify applicants with highest chance of

meeting/exceeding organizations standards of
performance.

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Selection

Selection Ratio = No of applicants hired

Total No of applicants
Close to 1:1

High Selection Ratio

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Significance of Selection Process

Crucial, complex & continuing function

Right personnel for the right job ensures
Employee contribution & commitment at
optimum level.
Congenial Employer Employee relations

Right selection- Employee valuable asset

Wrong selection- Employee liability to
organization.
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Steps in Selection Process

Initial or preliminary interview

Application blank or blanks.
Check of references.
Skill / Psychological tests.
Employment interview
Approval by the manager.
Medical examination.
Induction or orientation.
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TYPES OF TESTS

Types of tests
Aptitude Tests
Achievement Tests
Situational Tests
Interest Tests
Personality Tests
Multi dimensional Tests
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Selection Process
Aptitude Tests
Measures whether the candidate has the
capacity or the tatent ability to learn a given job if
given adequate training.
IQ Tests
Capacity for comprehension, reasoning,
numbers, memory etc.
IQ = Mental Age X 100
Actual Age
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Selection Process
IQ Tests
Candidates with high level of IQ can learn the
complicated issues easily and fast.
Easy to train such candidates for new jobs, new
assignments, new technology etc.
EQ Tests
Emotional involvement and commitment of the
employees determine their contribution to the
company.
EQ = Emotional Age X 100
Actual Age
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Selection Process

Skill Tests
Useful to select candidates to perform
design jobs etc.
Mechanical Aptitude Test
Capacities of spatial visualization,
perceptional speed and knowledge of
mechanical matter.
For Apprentices,Technicians etc
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Selection Process

Psychomotor Tests
Measure abilities like manual dexterity,
motor ability and eye hand coordination.
Useful for selecting workers for repetitive
operations like packing, assembly etc.
Clerical aptitude tests
Measure ability to do office work.
Includes spelling, computation, copying etc.
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Selection Process
Achievement Tests
For experienced candidates
For measuring specific achievements/accomplishments
of candidates
Job knowledge test Testing in the knowledge of the
particular job. E.g. A lecturer applied for Accounts asked
questions on Balance sheet, Books of accounts etc.
Work sample test Portion of the actual work given to
the candidate as a test. Above example, the lecturer
asked to deliver a lecture on principles of accountancy.

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Selection Process

Situational tests
Evaluating the candidate in a similar real life
situation. Asked either to cope with the
situation or solve critical situations of the
job.
Group discussion
Simulation
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Selection Process
Interest tests
Assumption is that there is a high correlation
between the interest of a candidate in a job and
the success achieved in the job.
These tests are inventories of the likes and
dislikes of candidates in relation to work, job,
hobbies etc.
Can find out the area of occupation the
candidate is interested.
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Selection Process

Personality tests
To discover clues to an individuals value
system, emotional reaction, maturity etc.
Expressed in traits like Self Confidence,
Emotional control, Decisiveness, Initiative,
Impulsiveness etc.
Objective tests- Most personality tests are
objective and can be scored objectively.
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Selection Process
Personality tests
Projective tests Candidates asked to project
their interpretation of certain standard stimulus
situations based on ambiguous pictures, figures
etc.
Disadvantages of personality tests Can be
faked by sophisticated candidates. To some
extent, can be countered by repeating the same
question in different parts to measure
consistency.
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Selection Process

Multi dimensional tests

Whether the candidate possesses a
variety of skills
Ability of the candidate to integrate the
multi-skills and apply them on situational
requirement
Almost all employees should be able to
work in marketing / purchase / finance etc
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Selection Process

Final Interview
Most essential step in the selection
process.
Interviewer matches the information
obtained about the candidate in the earlier
steps to the job requirements through
observations during the interview.

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Formal and structured interview

Interview preplanned and structured in advance
depending on job requirements.
Questions for discussions are structured and
experts allotted different areas and questions.
Very little room for the interviewers to deviate.
Time for interview, panel of interviewers, opening
and closing formalities planned in advance and
followed strictly.

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Formal and structured interview

Panel interview
A panel of experts interview each candidate,
judges the performance individually and
prepares consolidated score sheet.
Usually adopted for middle level and senior level
management staff.
Depth interview
Candidate examined extensively in core areas of
job skills and knowledge.
Usually conducted for specialist jobs.
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Formal and structured interview

On-line interviews
Information technology has brought significant
development in the selection process and one of
the important development is On-line interviews.
Selection techniques include On-line applicant
search, application submission, On-line tests,
internet based recruiting etc.
Most global companies follow this practice.
Reduces the cost of interview to a large extent.
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selection tools

References
Interview
Work history
Physical ability tests
Paper and pencil test
Background and information.

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Placement

As soon as the candidate reports for duty,

the organization has to place him initially
in that job for which he is selected.
Training is given in related jobs during the
period of training / probation.
Final placement decided after the training /
probation period is over and considering
the candidates aptitude and performance
during that period.
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Placement

Placement is the determination of the job

to which an accepted candidate is to be
assigned and his assignment to that job.
It is matching what the supervisor thinks
he can do with the job demands and what
he offers in the form of pay roll, working
environment etc.

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TYPES OF JOBS AND CLASSIFICATION

Independent jobs
Sequential jobs
Pooled jobs

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Problems in placement
a)
b)
c)
d)
e)

Employee expectations
Job expectations / description
Change in technology
Changes in organizational structure
Social and psychological factors

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How to make placement effective

a)

Job rotation technique of rotating the employee

among different jobs in the department / organization
enables the employee to satisfy his aptitude for
challenging work and finds the match with the job.

a)

Teamwork teamwork allows employees to use their

skills, knowledge & abilities more effectively .

a)

Training and development continuous employee

training and management development helps the
employee to acquire new skills and knowledge based
on the redesigned jobs.
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Assessment classification model

Collect details about the employee.
Construct his/her profile.
Which subgroup profile does the individual profile
best fit?
Compare subgroup profile to job family profiles.
Which job family profile does sub group profile best
fit?
Assign the individual to job family.
Assign the individual to specific job after further
counseling and assessment.
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unit:3

Developing
HR

Human Resource Development (HRD) is the integrated

use of training, organizational development, and career
development efforts to improve individual, group, and
organizational effectiveness.
Human resources are the assets, which do not find a
place for mentioning in the balance sheet of company.
But it is one of the most important assets as human
resources are a resource of production as well as they
are utilizing other resources of production like a material,
machines, money etc.
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roles of HR in developing resource capacity

Administrative : The administrative role of HR focuses on the
paperwork for hiring, training, compensating and engaging
employees.
This resolves transactional requirements. Example: Typing the
offer letter or checking if the documents received meet
company requirements.
Operational: The operational role of HR focuses on the
implementation of the processes of hiring, training,
compensating and engaging employees.
The operational team only thinks about now and tomorrow (the
immediate future). The focus is execution and improvement.

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roles of HR in developing resource capacity

Strategy team decides how one determines the
future organization requirements; it decides how
we can assess properly qualified candidates.
It decides how do you assess if a candidate is
committed? It decides if you cannot get people
from inside, then how you plan to attract
other candidates.
What happens if you cannot find the right
people? What if you start with the wrong
people?
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Need/ Importance/ Role and Significance of

HRD

Growth of organisation
Development of work culture
Developing potentialities
Growth of employees

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Induction/ORIENTATION/SOCIALIZATION
Induction is the process of receiving and
welcoming a new employee and give the basic
information to settle down quickly and happily
and start the work
Introducing the new employee to the job, job
location,
other
employees,
organization,
surroundings etc
Lack of information, lack of knowledge about the
requirements of the job, lack of knowledge about
the new environment etc disturb new employees
Gains more significance as the turnover rate
increases among new employees
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Induction/ORIENTATION/SOCIALIZATION

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Steps/ Stages in socialization Process:

Pre-arrival Stage
Encounter Stage
Metamorphosis Stage

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Steps/ Stages in socialization Process

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Mentoring

Mentoring is a process of developing

formal relationships between junior and
senior members of the organisation, in
certain cases mentoring also takes place
between peers.
The process of mentoring works both
ways i.e. it benefits the parties, the mentor
and the mentee.
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In summary

Mentoring is one-to-one interaction with the

employee.
Mentoring identifies strengths and areas of
improvement and eliminates or minimizes
areas of improvement.
Mentoring focuses on attitude more than
skill.
Mentoring is done by an internal employee.
Mentoring is conducted for management
only.
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Empowerment

What motivates people to work? Money

may be the primary reason, but beyond a
certain limit it fails to.
Organizations have been trying out
different things to increase the level of
motivation of its employees. Employee
empowerment is one of them.

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Empowerment

Employee empowerment means that an

employee is given a chance to be enterprising,
take risks without compromising with the
organizational goals, mission and vision.
His say in the process of decision making in
increased. This can be for one particular
individual or for the entire organization. In the
latter case it is called participative
management.
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Leadership Development

Leadership
Development
is
leadership
qualities, including communication, ability to
motivate others, and management, to an
individual who may or may not use the learned
skills in a leadership position.
A good personal leadership development
program should enable you to develop a plan
that helps you gain essential leadership skills
required for roles across a wide spectrum from
a youth environment to the corporate world
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Leadership Development

The success of leadership development

efforts has been linked to three variables:
Individual learner characteristics.
The quality and nature of the leadership
development program.
Genuine support for behavioral change
from the leader's supervisor.
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Training and Development

Training is defined as the organized

procedure by which employee learn and
improve knowledge and skills for a definite
purpose.
Training improves, changes and moulds
the employees knowledge, skill, behavior,
aptitude and attitude towards the
requirements of the job & the organization.
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Differences between Training & Development

Area

Training

Content

Technical skills and Managerial &

knowledge
behavioral skills &
knowledge
Specific job related Conceptual &
general knowledge
Long-term
Short-term

Purpose
Duration
For whom

Mostly technical &

non-managerial
personnel

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Development

Mostly for
managerial
personnel
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Importance of Training

No organization can get a candidate who exactly

matches with the job and the organizational
requirements. Hence, training is important to
develop the employee and make him suitable to
the job.
The job & organizational requirements change
from time to time with the change in the
awareness of TQM, TPM etc. The objectives of
TQM can be achieved through training.
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Importance of Training

Trained employees become a valuable

asset to the organization
Training enhances 4 Cs viz. Competence,
Commitment, Creativity & Contribution for
the organization.

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Benefits of Training to the Organization

Leads to improvement in quality,

productivity & profitability
Helps employee align with organizational
goals
Improves job knowledge and skills at all
levels of the organization
Improves employee morale
Helps in the preparation of guidelines for
work
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Benefits of Training to the Organization

Aids in development for promotion from

within.
Stimulates preventive management as
opposed to putting out fires.
Helps employees adjust to change.
Creates an appropriate climate for growth
& communication.
Aids in handling conflicts, thereby helping
to prevent stress & tension.
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Benefits of Training to the Individual

Helps the individual in making better decisions &

effective problem solving
Aids in achieving self-development and self-confidence
Increases job satisfaction & recognition
Through training & development, motivational variables
of recognition, achievement, growth, responsibility and
advancement are internalized and operationalized
Provides the trainee an avenue for growth and a say in
his future
Growth and learning happen side by side
Helps eliminate fear in attempting new tasks
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Need for Training

a) To match the employee specifications with the
job requirements & organizational needs.
Basically to mould the employees skill,
knowledge, attitude etc in line with the job
requirements.
b) Organizational viability and the transformation
process the organization viability is
continuously influenced by environmental
pressure. If the organization does not adapt to
the changes in the environment, it will lose its
market share. For adapting to the changes,
first it has to train the employees.
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Need for Training

c) Technological advances adoption of latest
technology requires that employees be trained
to enrich them in the changing technical skills
and knowledge from time to time.
d) Organizational complexity the complex
problems of coordination and integration of
activities due to diversification and expansion
by organizations calls for training the
individuals in these skills.
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Need for Training

e) Human relations training in human relations
is necessary to deal with human problems
such as alienation, interpersonal conflicts, inter
group conflicts etc.
f) Change in job assignment when an
employee is promoted to the higher level,
training is necessary. Same is the case when
an employee is transferred to a new location
on a new job.
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Need for Training

g) Improvement in performance training is also
necessary to increase productivity, improve
quality, prevent obsolescence.
h) Improvement in working conditions training
plays a vital part in improving organizational
climate, improve health and safety.
i) To act as mentor mentoring is a fine art of
spreading knowledge & fostering individual
growth. Most organizations consider mentoring
as a management tool to encourage
development of individuals and teams.
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Objectives of Training

To prepare the employee, both new and old

to meet the present as well as the changing
requirements of the job and the organization
To prepare employees for higher level tasks
To build up a second line of competent
officers and prepare them to occupy more
responsible position
To broaden the minds of senior managers by
providing them with opportunities for an inter
change of experience within and out side the
organization with the view to correct the
narrow outlook that might have arisen over a
period and from over specialization
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Objectives of Training

To develop the potentialities of people for the

next level job

To ensure smooth and efficient working of a

department
To ensure economical output of required
quality
To promote individual and collective morale, a
sense of responsibility, cooperative attitudes &
goods relationships

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TNA Training Needs Analysis

Training needs = job & organizational
requirement employees specifications
Training needs are identified on the basis of
organizational analysis, job analysis &
manpower analysis
TNA is a must for planning the training
programme, training methods & the course content
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TNA Training Needs Analysis

Methods for assessment of training needs
Organizational requirements / weaknesses
Departmental requirements / weaknesses
Job specifications & employee
specifications
Identifying specific problems
Anticipating future problems / opportunities
Observations of behavior
Interviews
Questionnaire surveys
Tests / examinations
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TNA Training Needs Analysis

Methods for assessment of training needs

Performance appraisal
Exit interviews
Quality circles proceedings
Customer survey / satisfaction data
Attitude survey of individuals
Random work sampling of individuals
Rating scales
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Consideration in designing Training

programs (training Methods)
Training Methods

On-the job

Off-the job

Job rotation
Coaching
Job instruction(step by step)
Committee assignments

Vestibule training
Role play
Lecture methods
Conference / seminar
Programmed instruction

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On the Job Training Methods

Individual placed on a regular job and

taught the skills necessary to perform the
job.
The trainee learns the job under the
supervision and guidance of a qualified
worker or instructor.
Advantage trainee gets first hand
knowledge & experience under actual
working conditions .
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On the Job Training Methods

Job Rotation
Involves movement of the trainee from one
job to another. The trainee receives job
knowledge and gains experience in each
assignment.
Advantage - Trainee able to understand the
problems of employees on other jobs and
respect them.
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On the Job Training Methods

Coaching
The trainee is placed under a particular
supervisor who functions as a coach in training
the individual. The supervisor provides feedback
to the trainee on performance and offers
suggestions for improvement.
Limitation The trainee may not get the freedom
or opportunity to express ideas.

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On the Job Training Methods

Job Instruction
Also known as step by step training. The trainer
instructs the trainee step by step how to do the job.
The trainer simultaneously appraises the
performance of the trainee and correct the trainee
as required.
Committee Assignments
Group of trainees given an organizational problem
and asked to solve the problem. It develops
teamwork.
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Internship
Internship involves training the colleges or universities
pass outs about the practical aspects of their study.
This method of training provides a chance to the
students to implement the theoretical concepts that
they have learnt during their study.
Thus it balances the theoretical and practical aspects
of the study.
Professional likes chartered accountants, BBA, MBAs,
company secretaries and doctors are given training
through this method.

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Off the Job Training Methods

Trainee is separated from the job situation and
attention focused upon learning the material
related to his future job performance.
Trainee can place his entire concentration on
learning rather than learning and doing
simultaneously.
Trainees get opportunities to express their ideas.
Organizations now use information technology
and multimedia technology in training.
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Off the Job Training Methods

Vestibule Training
Actual work conditions are simulated in a
class room.
Equipment, materials, files, documents etc
used in actual job performance are used
in training.
The duration ranges from days to a few
weeks.
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Off the Job Training Methods

Role Playing
It is defined as a method of human interaction that
involves realistic behavior in imaginary situations.
The participants play the role of certain characters
such as the Production Manger, Superintendents,
Maintenance Engineers, Quality Control
Inspectors, Foremen, Workmen etc. This method
is mainly used for developing interpersonal
relations.
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Off the Job Training Methods

Lecture Method
Also known as classroom method, it is a traditional
and direct method of instruction.
The instructor organizes the material and delivers
a talk to a group of trainees. To be effective, the
lecturer must motivate and create interest among
the trainees.
Advantages it is direct and can be used for a large group
of trainees. Saves time & cost.
Disadvantage does not provide for transfer of training
effectively.
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Off the Job Training Methods

Conference / Discussion / Seminar
Involves a group of people who pose ideas,
examine and share facts, ideas & data, test
assumptions & draw conclusions, all of which
contribute to the improvement of job performance.
Advantages discussion involves two way
communication and hence immediate feedback is
provided.
Participants feel free to speak and hence
they come out with their best. Good leaders can
make a success out of this method.
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Off the Job Training Methods

Programmed Instruction
The subject matter to be learned is presented in a
series of carefully planned sequential units. These
units are arranged from simple to more complex
levels of instruction. The trainee goes through
these units by answering questions or filling the
blanks.
Disadvantage this method is expensive and time
consuming.
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Management development

Management development is any attempt

to improve managerial performance by
imparting knowledge, changing attitudes or
increasing skills.
- G. Dessler
MD is a more future oriented, and more
concerned with education, than is
employee training, or assisting a person to
become a better performer.
- DeCenzo
and Robbins
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MD program tries to enhance

Job skills
Level of motivation and confidence
Opportunity to move up in the hierarchy
Level of job performance/rewards
Team work, mentoring and empowerment
Managerial
decision
making
and
implementation.
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Method of management and leadership

development

A. on the job method:

Coaching
Under study Assignment
Job rotation
Committee Assignment

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Method of management and leadership

development

B. off the job method:

Sensitivity training
Business or management games
Special courses
Role playing
Conference
Action learning
Case study
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Training Procedure

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Training Procedure
1.
2.
3.
4.
5.
6.

Preparing the instructor

Preparing the trainee
Getting ready to teach
Presenting the operation
Try out the trainees performance
Follow up

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Advantages of Training

1.
2.
3.
4.
5.
6.

Increased productivity
Improvement in quality
Heightened employee morale
Reduced supervision
Reduced accidents
Increased organizational stability

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Evaluation of Training Programme

Evaluation of training programme can be defined
as the attempt to obtain information on the
effectiveness of training programme, the effects
on performance and to assess the value of
training in the light of that information.
The basis of evaluation and the mode of
collecting the information necessary for
evaluation should be determined at the planning
stage.
Evaluation leads to controlling & correcting the
training programme.
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Five Levels of Evaluation

1. Reaction Trainees reactions immediately at
the end of the programme on usefulness,
subject
coverage,
depth
of
content,
presentation methods, teaching methods etc.
2. Learning Evaluation is on the basis of
quantity of content learned, time in which it is
learned and the learners ability to use or apply
the content learned.
3. Job Behavior Evaluation includes the
manner and extent to which the trainee has
applied his learning to the job.
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Five Levels of Evaluation

4. Organization Evaluation measures the use
of training, learning and change in the job
behavior in the form of increased productivity,
improved quality, morale, sales turnover etc.
5. Ultimate value It is the measurement of the
ultimate result of the contributions of the
training programme to the company goals like
survival, growth, profitability etc and to the
individual goals like personality development
etc.
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Methods of Training Evaluation

1.
2.
3.
4.
5.

Test-retest method
Pre-post performance method
Experimental-control group method
Time series analysis method
Structured interview method

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Unit: 4

Performance Appraisal

Performance appraisal helps the employee & the

management to assess the level of employees
performance compared to the standard / pre-determined
levels.
Performance appraisal is a very essential element in any
organization to understand & improve the employees
performance.
Performance appraisal used as a basis to decide
promotions, increments, transfer etc.
Performance appraisal is used as the basis for employee
development.
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Performance Appraisal
Meaning & Definition
Performance appraisal is a method of evaluating
the behavior & performance of employees in the
workplace.
It includes both the qualitative & quantitative
aspects of performance.
It indicates how well the employee is fulfilling the
demands of the job.
Performance should not be confused with effort.
Performance is always measured in terms of
results.
Performance appraisal is the systematic
description of an employees job-relevant
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strengths and weaknesses.
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Performance Appraisal
Meaning & Definition
The basic purpose is to find out how well the
employee is performing the job and establish a
plan of improvement.
Appraisals are arranged periodically according to
a definite plan
Performance appraisal is not job evaluation. It
refers to how well someone is doing the
assigned job. Job evaluation determines how
much a job is worth to the organization and ,
therefore, what range of pay should be assigned
to the job
Performance appraisal is a continuous process
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in large scale organizations.
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Role of HR in a firm competitiveness

Productivity and competitiveness of an

enterprises is dependent upon
performance of the HR.
Improve quality
Reduces cost
Ability to respond quickly to cut ocststo
innovate
To entry new market
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Contents of Performance
Appraisal

Regularity of attendance
Ability to work with others
Leadership style & abilities
Initiative
Technical skill
Ability to grasp new things
Reasoning ability
Originality & resourcefulness
Integrity
capability to assume responsibility
Knowledge of systems & procedures
Quality of suggestions offered for improvement
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360 Performance
Appraisal
The appraiser is any person who has knowledge
about job content, the contents to be appraised
and is capable of determining what is more
important & what is relatively less important. The
appraiser is connected to the appraisee in some
way and can observe the employee while
performing the job.
The typical appraisers in 360 Performance
Appraisal are employees themselves (self
appraisal), supervisors in the same department,
supervisors in other departments, subordinates,
peers, users of service & consultants.
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360 Performance Appraisal

Supervisors the supervisors include
superiors of the employee, other superiors
having knowledge about the work of the
employee and department head/manager.
The normal practice in most organizations
is that immediate superiors appraise the
performance which in turn is reviewed by
the department head / manager.
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360 Performance
Appraisal
Peers peer appraisal may be reliable if
the work group is stable over a reasonably
long period of time and performs tasks
that require interaction.
Subordinates in organization where the
relationships between superiors &
subordinates are cordial, the concept of
superiors rated by subordinates is
practiced.
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360 Performance
Appraisal
Self appraisal employees appraise their own
performance when they are able to understand
the objectives their expected to achieve &
standards by which they are to be evaluated.
Users / customers in service organizations,
employee performance relating to behavior,
promptness, speed, accuracy etc can be
evaluated by the users or customers.

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360 Performance
Appraisal
Consultants sometimes consultants may
be engaged for appraisal when employees
or employers do not trust supervisor
appraisal & the management does not
trust self appraisal & other form of
appraisal. The consultants are trained and
they observe the employees at work for a
sufficiently long period of time.
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Methods of Performance
Appraisal

1.
2.
3.
4.
5.
6.
7.
8.
9.

Traditional methods
Graphic rating scales
Ranking method
Paired comparison method
Forced distribution method
Checklist method
Critical incident method
Essay or free form appraisal
Group appraisal
Confidential reports
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Methods of Performance
Appraisal

1.
2.
3.
4.
5.

Modern methods
Behaviorally anchored rating scales
Assessment centre
Human resources accounting
Management by objectives
Psychological appraisals

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Traditional Methods of
Performance Appraisal
1.

Graphic rating scales

Comparing individual performance to an absolute
standard. Judgments about performance are recorded
on a scale.
Oldest & widely used.
Also known as linear rating scale or simple rating
scale.
Appraisers given printed forms which contain the
various objectives, the qualities to be rated like
analytical ability, creative ability, initiative, leadership
qualities, emotional stability etc in case of managerial
personnel.
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Traditional Methods of
Performance Appraisal
1. Graphic rating scales
The qualities in respect of workmen could be
quantity and quality of work, job knowledge,
attitude, dependability, initiative etc.
The rating scale used could be continuous
rating scale or discontinuous rating scale. In
continuous scale, the points are in a particular
order. For e.g 0 to 5 i.e. 0,1,2,3,4,5 where 5 is
the highest.
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Traditional Methods of
Performance Appraisal
1. Graphic rating scales

In discontinuous scale, the appraiser

assigns the points against each quality
or character. The points given by the
rater to each character are added up to
find out the overall performance. The
employees are then ranked on the basis
of the total points assigned to them.
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Traditional Methods of
Performance Appraisal

2. Ranking method
The employees are ranked from best to worst
on some characteristics.
The rater first finds the employee with the
highest performance & employees with the
lowest performance.
The rater then selects the next highest and next
lowest and so on until all the employees in that
group are rated.
Relatively easy and inexpensive but reliability
and validity open to doubt.
Another limitation is the size of the difference
between the various
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Traditional Methods of
Performance Appraisal
3. Paired comparison method

The appraiser ranks the employees by comparing one

employee with all other employee in the group, one at
a time.
Each employee is assigned a capital letter like
A,B,C,etc & one separate sheet used for each
employee.
For each plotted pair, write the letter of the employee
who has done a superior overall job and assign a
certain percentage of the total positive evaluation.
If a department has two outstanding employees and
six average employees and if this method is correctly
used, the two employees will get a much higher
percentage of positive comparison than the other six.
Number of comparisons
= N- (N-1)
/ 2. For large
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number of employees, SEMESTER
it is time consuming.

Traditional Methods of
Performance Appraisal
4. Forced Distribution method

The rater after assigning the points to the performance

of each employee distributes his ratings in a pattern to
conform to normal frequency distribution.
This method is developed to prevent the raters from
rating too high or too low.
This method eliminates central tendency & leniency
biases.
Main drawback is the assumption that all groups of
employees will have the same distribution of excellent,
average & poor performers
Employees are placed in certain ranked categories but
not rank within the categories.
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Traditional Methods of
Performance Appraisal
5. Checklist method
Three types simple checklist, weighted
checklist, forced choice method.
Simple checklist - The checklist consists of a
large number of statements concerning
employee behavior.
Rater checks to indicate if the behavior is
positive or negative to each statement.
The performance is rated on the basis of
number of positive checks.
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Traditional Methods of
Performance Appraisal
5.

Checklist method
Weighted checklist it involves weighting different
items in the checklist to indicate that some statements
are more important than others.
Usually the weights are not given to the supervisors
who appraise but are computed and tabulated by
someone else, may be the HR person.
The performance ratings are multiplied by the weights
of the statements and then added up.
Expensive to design and may consume more time
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Traditional Methods of
Performance Appraisal
5. Checklist method
Forced choice method large number of statements in
groups are prepared. Each group consists of four
descriptive statements out of which two are most
descriptive i.e. favorable and two are least descriptive
i.e. unfavorable.
The actual weightage of statements are kept secret. The
appraiser asked to select one statement that mostly
describes employee behavior and one statement from
the unfavorable statements.
Eliminates or greatly reduces the raters personal bias.
Raters not properly trained will find difficult to choose
among statements.
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Traditional Methods of
Performance Appraisal
6. Critical incident method
The supervisor continuously records the critical incidents
of the employee performance or behavior relating to all
characteristics, both positive & negative in a specially
designed notebook.
The supervisor rates the performance on the basis of
notes taken.
This method is more objective than subjective & hence
helps in reducing the bias in evaluation.
One drawback is the critical incident may not be defined
in the same manner by all raters.
Sometimes the employee might have done something
critically good and excellent but the supervisor may not
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Traditional Methods of
Performance Appraisal
7.

Essay or free form appraisal

The manager writes a short essay describing the
employees performance during the rating period.
Emphasis is on evaluation of overall performance
based on the strengths & weaknesses of the
employees.
Time involved is more. Not amenable for evaluation
and analysis.
The writing skills different for different evaluators.

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Traditional Methods of
Performance Appraisal
8. Group appraisal

Employee appraised by a group consisting of the

immediate supervisor, supervisors in other departments
having close contact with the employees work, the
HOD and consultants.
The group may use one or more of the earlier methods.
The group compares the actual performance with
standards, finds out the deviations, discusses the
reasons for the same, suggests ways for improvement,
prepares action plans.
The group also studies the need for change in the job
analysis and standards and recommends necessary
changes.
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Traditional Methods of
Performance Appraisal
9. Confidential reports
A traditional method is to assess the
performance confidentially.
The superior appraises the performance based
on observations, judgement & intuitions.
The employee is not informed about the report.
Not in use these days.

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Modern Methods of
Performance Appraisal
1. BARS Behaviorally Anchored Rating Scales.
It combines the techniques employed in the
critical incident method & weighted checklist
rating scales. It involves 5 steps.
Step 1: Collect critical incidents People with
knowledge of the job describe specific examples
of effective & ineffective behavior related to job
performance.
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Modern Methods of
Performance Appraisal
1. BARS Behaviorally Anchored Rating Scales
Step -2: Identify performance dimensions The
critical incidents are broken into a small set of key
performance dimensions. Some of the performance
dimensions are technical competence, handling
customer relationship, meeting day-to-day deadlines.
While developing varying levels of performance for
each dimension (anchors), specific examples of
behavior should be used which could later be scaled
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in terms of good, average,
below average etc.

Modern Methods of
Performance Appraisal
1. BARS Behaviorally Anchored Rating Scales
Step 3 : Reclassification of incidents Another group
of people having knowledge about the job reclassify
the critical incidents. They are given the definition of
job dimension and told to assign each critical incident
to the dimension that it best describes. Incidents for
which the agreement is below 75% are discarded as
being too subjective.
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Modern Methods of
Performance Appraisal
1. BARS Behaviorally Anchored Rating Scales
Step 4: Assigning scale values to the incidents Each
incidents is then rated on a one-to-nine scale with respective
how well it represents performance on the appropriate
dimension. A rating of one represents ineffective performance
& the rating of nine indicates very effective performance. The
second group of participants usually assigns the scale values.
Means & standard deviations are calculated for the scale
values to each incidents. Incidents that have standard
deviations of 1.5 or less are retained.
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Modern Methods of
Performance Appraisal
1.

BARS Behaviorally Anchored Rating Scales

Step 5: Producing the final instrument About six

or seven incidents for each performance dimension
are used as behavioral anchors. The final BARS
instrument consists of a series of vertical scales
(one for each dimension) anchored or measured by
the final incidents. Each incident is positioned on the
scale according to its mean value.
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Modern Methods of
Performance Appraisal
2.

3.

Assessment Centre
The assessment of several individuals is done by
various experts by using various techniques like in
basket, role plays, case studies, simulation etc.
Human Resources Accounting
It deals with the cost vs contribution of human
resources to the organization. The cost includes the
cost of hiring, training & development & the wages &
benefits given. The contribution is the money value of
employee service measured by labor productivity,
value addition etc. The performance is positive if the
contribution exceeds the cost and can be measured in
terms of percentage excess.
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Modern Methods of
Performance Appraisal
4. Management by objectives
MBO is a process where by the superior &
subordinate jointly identify common goals,
define each individuals areas of responsibility
in terms of results expected and then use this
measure for assessing the contribution. MBO
focuses attention on goals that are tangible,
verifiable & measurable.
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Modern Methods of
Performance Appraisal
5.

Psychological Appraisal
It consists of in-depth interviews, psychological tests,
discussions with the employee, discussions with the
superiors, subordinates & peers and reviews of other
evaluation.

Evaluation is conducted in the areas of intellectual

abilities, emotional stability, motivational responses,
reasoning & analytical abilities, interpretation &
judgment skills, sociability, ability to foresee the future.

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Uses of Performance
Appraisal
Enables management to make effective decisions
and / or correct the earlier decisions relating to the HRM
issues like HR planning, fixation of salary & benefits,
placement/placement adjustment decisions, identification of
training needs, career planning & development etc.

HR planning - Helps to evaluate the existing plans, job

analysis, information system etc.
Performance improvement Performance feedback helps
the employee to improve the performance & for self
development.
Human relations - It improves superior subordinate
relations through close interaction.
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Uses of Performance
Appraisal
4. Compensation adjustments Many
organizations base their pay increases &
bonuses upon merit which is determine
through performance appraisals
5. Placement decisions Promotions, transfers,
demotions are based on performance.
6. Training & development needs Poor
performance may indicate the need for
retraining. Good performance may indicate
untapped potential that should be developed.
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Uses of Performance
Appraisal
7. Career planning & development Performance
feedback guides career decisions about
specific career paths.
8. Staffing process deficiencies Good or bad
performance may indicate the strengths or
weaknesses in the HR departments staffing
procedures.
9. Job design errors Sometimes, poor
performance may be an indication of ill
conceived job designs and may need
immediate diagnosis.
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Uses of Performance
Appraisal
10. EEO Accurate performance appraisals takes
care that internal placement decisions are not
discriminatory
11. Employee counseling Sometime, the
performance may be influenced by the external
environment such as family, health, finance
etc. When uncovered through performance
appraisals, the HR department can provide
assistance in the form of counseling the
employee and find solutions to the problems.
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Limitations & Problems of

Performance Appraisal
1.
a.
b.
c.
d.
e.

Rating biases: Includes the following.

Halo effect tendency to depend excessively on the
rating of one trait.
Error of central tendency some raters play safe by
rating around the middle point of the rating scale.
Leniency and strictness some raters may be liberal &
assign higher rates consistently. Some raters the
opposite.
Personal prejudice if a rater dislikes any employee,
the rating may be at the lower end.
The recency effect the rater may remember the
recent actions of the employee at the time of rating &
rate on that basis.
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Limitations & Problems of

Performance Appraisal
2. Failure of the superiors in conducting
performance appraisal & post performance
appraisal interviews.
3. Negative rating affect interpersonal relations &
industrial relations.
4. Feedback & post appraisal interview may have
a setback on production.
5. Supervisors often confused due to many
objectives of performance appraisal.
6. Absence of inter-rater reliability
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Limitations & Problems of

Performance Appraisal

How to minimize the problems of performance

Appraisal?
By convening an open meeting with the appraisees to discuss the
performance of all employees before, during and after
performance review discussions.
By encouraging everyone to comment on each others
achievements and areas requiring improvement.
The appraiser should tell the truth & reality behind the curtains to
his subordinates.
By conducting counselling meetings with the appraisees to
appraise them of the reasons for their performance & its
consequences.
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EMERGING CONCEPTS AND ISSUES IN

PA
Use of technology to appraisal
performance
Use of ongoing feedback in PE

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EMERGING ISSUES IN PA

Self managed team

Dealing with problems
Legal and Ethical issues
Who should evaluate performance?
Low appraiser motivation
Evaluate too many employees
Conflict between HR and line managers
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Career Planning & Development

Meaning & definition
Career pertains to all the jobs that are held during ones
working life.
A career is a sequence of separate but related work
activities that provides continuity, order & meaning in a
persons life.
A career is defined as an individually perceived
sequence of attitudes & behaviors associated with work
related experiences and activities over the span of a
persons life.
A career path is the sequential pattern of jobs that form a
career.
Career goals are the future positions one strives for as a
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Career Planning & Development

Career planning is the process by which one

selects career goals & the path to these goals.
Career development comprise the personal
improvements one undertakes to achieve a
personal career plan.
Career management is the process of designing
an implementing goals, plans and strategies to
enable the organization to satisfy employee
needs while allowing individuals to achieve their
career goals.
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Career Planning & Development

Some examples of career planning practices

Promote from within whenever possible

Employ personal employee intranet sites
Design career & training paths for key
competencies
Identify & develop key character traits in managers
Deploy career rotation as a tool to communicate a
global culture
Hold managers accountable as gatekeepers of
employee career path planning.
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Career Planning & Development

Need for career planning
To attract competent persons and to retain them in the
organization.
To provide suitable promotional opportunities.
To enable the employees to develop and make them
ready to meet future challenges.
To increase the utilization of managerial reserves within
an organization.
To correct employee placement.
To reduce employee dissatisfaction and turnover.
To improve motivation and morale.
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Career Development Actions

1. Job performance: Employee must prove that
his performance on the job is to the level of
standards established, if he wants career
progress.
2. Exposure : Employees desire for career
progress
should
expose
their
skills,
knowledge,
qualifications,
achievements,
performance etc to those who take the
decision about career progress.

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Career Development Actions

3.

4.

5.

Resignations : Employees may resign the present job in

the organization, if they find that career opportunities
elsewhere are better than those of the present
organization.
Change the job : Employees who put organizational
loyalty above career loyalty may change the job in the
same organization if they find that career opportunities
in other jobs in the same organization are better than
those in the present job.
Career guidance : Counselling provides information,
advice & encouragement to switch over to another
career or organization, where career opportunities are
better.
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Unit: 5

Compensation
The terms wages /salary/compensation are often
used as synonyms.
The term wage is usually associated with
contractual employee whose pay is calculated
according to the number of hours worked/units
produced.
The word compensation applies to the remuneration
that is paid for a fixed period and does not depend
upon the number of hours worked.
It is associated with the white collar worker. Certain
theories were propounded for determination of
wages but these could not stand the test of time.
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compensation
Compensation refers to all forms of
financial return and tengible services and
benefits that employees of an organization
receive as pert of the employment
relationship.
Employees sell their skills and ideas in
order to fulfill their primary needs, and
employers hire them to achieve their
organizational goals.
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Compensation structure

A) Intrinsic rewards
B) Extrinsic rewards (Type)
Indirect compensation
Indirect compensation

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Pay determination process (compensation program

me)

Performing Job Analysis

Conducting pay
Analysis of organizational problems
Preparation of pay structure
Framing pay administration rules
Implementation of wages and salaries

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Job evaluation methods

A) Non-analytical methods
Ranking method
Job classification (grading method)
B) Analytical methods
Point (rating)method
Factor comparison methods

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Factors affecting wages or compensation in

Nepal

1) Productivity of workers
2) Ability to pay
3) Government
4) Labor union
5) Cost of living
6) Demand and supply of labor

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Minimum Wages
The minimum amount of compensation an
employee must receive for performing labor.
Minimum wages are typically established by
contract or legislation by the government. As
such, it is illegal to pay an employee less than
the minimum wage.
Wage rate established by collective bargaining or
by government regulation, specifying the lowest
rate at which workers may be employed. A legal
minimum wage is one mandated by government
for all workers in an economy, with few
exceptions.
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Incentive system

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Types of incentives plan

Types of incentives plan

Individual pay plan
Group pay plan
Organizational pay plan

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Current trends in compensation

Competency and skills based pay

Broad banding: (collapsing into few level)
The New Pay: (both together)

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Emerging issues in Compensation

The issues of comparable

The issue of secrecy
The issue of inflation and salary
compression
The issue of pay reviews
The issue of employee participation

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Pay practices in Nepal

Government organizations
Private sector organization
Private banks and financial institutions
Non- Government organizations

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Employee benefit &service

In addition to a salary, employees may
receive a range of benefits and services
from their employers. Benefits and
services may vary depending on the
employee's position or seniority, but most
employees of a company will generally
share the same basic benefits package.
Benefits and services packages also differ
among companies.
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Retirement programme
Retirement pensions are usually in the form
of a guaranteed life annuity, which insures
against the risk of longevity.
The different types of pensions are:
Employment-based pensions (retirement
plans).
Social and state pensions.
Disability pensions.
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Retirement benefits
Retired government officials are provided
with retirement and pension benefits in
order to ensure a regular income and a
secure future.
These financial benefits result in a feeling
of independence as they assure a decent
standard of life after retirement.

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Executive compensation
The process of selecting and hiring senior
executives capable of motivating people and
leading a company to its goal can be
challenging. With concerned investors closely
monitoring company performance, todays
businesses are under tremendous pressure to
retain qualified executives once they hire them.
Executive Compensation is negotiated between
the potential executive and the employer.
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Social welfare
The well-being of the entire society. Social
welfare is not the same as standard of
living but is more concerned with the
quality of life that includes factors such as
the quality of the environment (air, soil,
water), level of crime, extent of drug
abuse, availability of essential social
services, as well as religious and spiritual
aspects of life.
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Incentive compensation
Incentive compensation can be defined as
a practice of compensating employees
based on their performance and their ability
to meet their organizations performance
goals.
Additionally, an incentive compensation
plan is said to be well-designed, if it makes
each department or individual focus on and
administer proper control over its field of
activities.
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Unit:6 Occupational health &safety

Occupational health should aims at:
The promotion and maintenance of the highest
degree of physical, Mental and social well-being
of workers in all occupations,
The prevention amongst workers of departures
from health caused by their working conditions,
Protection of workers in their employment from
risks resulting from factors adverse to health.

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OHAS Provision

Daily cleaning of enterprises with germicidal medicines.

Arrangement of supplying fresh air and light with good temperature
for good working condition.
Arrangement for removal and disposal for solid wastages.
Arrangement for prevention of accumulation of dusts, fume, vapor
and other impurity materials.
One should concerns with the spacing and height of working
condition.
Plenty of water supply in case of hazards occurrence, extinguishing
fire, washing and cleaning purpose.
Arrangement of separate toilets for male /female at convenience
place.
Declaration of no smoking zone.
Compulsion for health check up for everyone.
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Common Hazards

Industrial injuries
Industrial accidents
Mechanical and chemical hazards
Biological hazards
Psychosocial hazards etc.

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Emerging issues in OHAS

Physical working conditions

Sick building syndrome
Ergonomics (work management)
Engineering of work equipments and materials
Cumulative trauma and repetitive stress
( disorder)
Accident rate and individuals

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EMERGING PRACTICES

Has the OSH Act Worked?

Workplace violence : an emerging safety
issue
Ethical issues in OSH programs
International health issues
International safety issues

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Unit: 8 Change, before change

changes you !!
Rich Human Resource Turns the Poor
Country into Rich Country, but not viceversa.
HR creates a distinctive competency to
an Organization Be part of It.
Competition!
Competition!!
Meet
it
Through Enriching Your HR !! , Not by any
other Means!!!
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Industrial /labor relationship

Dale Yoder: Whole field of relationship that
exists
because
of
the
necessary
collaboration of men and women in the
employment process of an industry.
ILO: Relationship between the state and the
employers and workers organizations or the
relations
between
the
occupational
organizations themselves.
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Objectives of IR

Congenial Labour-Management Relations

Enhance Economic Status of Employees
Reduce Industrial Conflicts
Socialize Industries
Participative Decision-Making
Solve Problems through Negotiations
Industrial Democracy
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Approaches to IR

Psychological Approach
Sociological Approach
Human Relations Approach
Non-Violence , Truth and Trusteeship

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Actors of HR

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Why Trade Unions?

To Provide Economic Security

To Improve Bargaining Power
To Ventilate workers Grievances
To Satisfy Workers Social needs
To Secure Power to Employees

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Employee Association
Employers join what are called employer
associations/employer federations/trade
associations.
Like trade unions, employer associations
are made up of businesses and employers
and who all pay annual fees for their
benefits.

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Employer associations and the

Government
They want the government to control things such
as inflation, law and order, health and safety,
and education for the workforce.
Lower taxes.
More freedom for businesses.
Fair competition.
Good transport infrastructure.
Access to overseas markets.
Reliable source of power.
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Causes of industrial dispute

An industrial dispute is basically a difference between
employer and employees. The causes of industrial
dispute can be broadly classified into two categories:
economic and non-economic causes.
The economic causes will include issues relating to
compensation like wages, bonus, allowances, and
conditions for work, working hours, leave and holidays
without pay, unjust layoffs and retrenchments.
The non-economic factors will include victimization of
workers,
sympathetic
strikes,
political
factors,
indiscipline etc.
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Ways to avoid labor disputes

Higher wages
Better benefits
Better working condition
Increased job security
Meet regularly with union representatives
Be fair , but dont away the farm.

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OUTPLACEMENT
Professional coaching, practical guidance
and essential facilities to help people
move to the next stage in their careers,
either within their current organizations or
elsewhere.

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Services & Training Provided in

Outplacement
Writing better resumes
Preparing for the interviews
Mock interviews
Telling about networks & networking
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Conflict management
Conflict management is the process of
limiting the negative aspects of conflict
while increasing the positive aspects of
conflict.
The aim of conflict management is to
enhance learning and group outcomes,
including effectiveness or performance in
organizational setting (Ra him, 2002,
p. 208).
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Causes of conflicts at work

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Resolving conflicts

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Dismissal Redundancy
Redundancy happens when a person is told to leave the
job because his skills are of no more use to the
organization. This may happen due to many reason, for
example,
A merger between two firms results in surplus job.
A business is losing sales and wants to cut the
production level or cost and may lay off employees
The product is taken out of production altogether
Maybe new machinery is introduced and it requires
different skills and qualifications to operate it.
It is also known as retrenchment.

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Current issues/situation of labor

relations in Nepal
Issues related to the IR strategy and policy
making
Issues related to collective bargaining and
personnel policies
Issues related to IRs at the work place
(QWL)

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Labor Legislation in Nepal

It guides the IR and influence the HR
activities of the organization.
Legislation is guided by the national
culture and value systems which vary from
country to country and this is reflected in
the law of different countries.

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