1

Course Title: Project Human Resource Management

Program: PPM

Course Code: PPM 551

Credit Hours: 2

Quick Reference: Human Resource Management by John. M.

Ivancevich 08/01/2021
 1-2 Chapter one: Overview of Human Resource Management

Chapter outline:
 Introduction and definition of HRM
 Objectives of Human Resource Management
 Characteristics of Human Resource Management
 Roles and Functions of Human Resource Manager
 Human Resource policies, procedures and programs
 Evolution of Human Resource Management
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1-3
Introduction
 Human resource is the most important input to achieve
organizational objectives (others are materials,
information, capital)
 Human resources is the only dynamic factor of
production.
 Without human resource other factors of production
are useless and idle

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 What differentiate HR to other organizational
1-4
Inputs?
 Human resources of an organization can be motivated
 It is the only factor of production which produces
more than its input
 Human resource is mobile
 It is the only resource which gains more knowledge
and skilled in the long run, where the other resources
goes depleting

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 What differentiate HR to other organizational Inputs?
1-5

 It is the Human Resource that moves the wheels of

organizations effectively

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 What differentiate HR to other organizational
1-6
Inputs?
 HRM is the Nervous system of an organization

 HRM is the Backbone of an organization

 Generally Speaking, the proper utilization of human

resources help to achieve organization objectives

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 Definition of Human Resource
1-7
Management (HRM)
 Human Resource Management (HRM) is the planning,
directing, organizing and controlling of procurement,
development, compensation, integration, maintenance
and separation of human recourses to the end that
individual, organizational and societal objectives are
accomplished (Edwin B. Fippo)

 HRM is the process of attracting, holding and

motivating people involving in all managers (Dunn
and Stephens) 08/01/2021
 Definition of Human Resource Management
(HRM)
 HRM concerned with all activities involved in
determining an organization’s human resource needs,
as well as acquiring, training, and compensating
people to fill those needs

11-8
1-9 Typical HR Issues

 How many employees?

 What skills are needed to satisfy plans?
 Availability of people in the workforce?
 What qualifications must employees have?
 Cost of staffing?

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1-10 Objectives of Human Resource
Management
 Organization objective: The goal of human resource function is the
creation of a work force with the ability and motivation to
accomplish the basic organizational goals.
 Personal objective: they relate to the satisfaction of the personal
objectives of the members of an organization through monetary and
non-monetary devices.
 Societal objective: Human Resource management relate to the
satisfaction of social and community objectives

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1-11 Characteristics of Human Resource
 Management
HRM is concerned with managing people at work and with their group
relationship.
 HRM is concerned with employees, both as individual and as a group and
aim to their achieve objectives in turn to achieve organizational goals.
 HRM is concerned with helping the employees to develop their potentials
and capacities to maximum possible extent, so that they can derive great
satisfaction from their job.
 HRM is always there in any organization because recruitment, selection,
development, utilization of people is integral part of any organization.

08/01/2021
1-12 Characteristics of Human Resource
 Management
HRM is of a continuous nature. it requires a constant alertness
and awareness of human relations and their importance in
every day operation
 It enhances performance of employees in achieving goals
 It opens channel of communication.
 It is goal oriented
 It requires participation
 It attempts at getting the willing cooperation of the people for
the achievement of the desired goals.
08/01/2021
1-13 Roles of Human Resource Manager
 Personnel role
 Welfare role
 Clerical role
 Fire-fighting legal role
 Counselor role
 Mediator role
 Spokesman role
 Problem Solving role
 Change Agent role
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1-14 Roles of Human Resource Manager
 Personnel role: as personnel role the Human
Resource Manager gives advice to management on
effective use of human resource.
 The manager also plan man power requirement,
recruitment, selection, training and development
programs and assess individual & group behavior.

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1-15 Roles of Human Resource Manager

 Welfare role: the human resource manager

undertakes organizational problems and
manages services like canteen facilities and
transport facilities and provides other
amenities to employees.
 He/she also engage in giving counseling,
motivation, leadership, and communication
08/01/2021
1-16 Roles of Human Resource Manager
 Clerical role: The Human Resource Manager takes
care of the administration of wage & salary,
maintain records and give proper incentives to
employees.
 Fire-fighting legal role: The Human Resource
Manager has to settle the disputes & takes
disciplinary actions.
 He/she act as a legal manager and as intermediary
in handling of grievances. 08/01/2021
1-17 Roles of Human Resource Manager
 Counselor role: The Human Resource Manager
will discuss with employees about their health,
mental, physical and career problems.
 Mediator role: The Human Resource Manager
plays the role of peace maker offering to settle
the disputes that may arise among individuals
or groups.

08/01/2021
1-18
Roles of Human Resource Manager
 Spokesman role: The Human Resource Manager acts as a
representative of the company, because he has a better overall
long range organizational planning.
 Problem Solving role: The Human Resource Manager act as a
problem solver with respect to the issues that involve human
resource management and overall long range organizational
plan.
 Change Agent role: The Human Resource Manager works as
change agent with in the organization because he/she is best
suited to introduce and implement major institutional changes.

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1-19 Function of Human Resource Manager
 The Functions of Human Resource
Management can be discussed in two broad
heads:
1.Managerial functions, and
2.Operative or Service functions

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1-20
Managerial Functions

ng
iz i
n
rga
O St
af
fin
g
Plan
Managerial
n
ing

Functions
1

ting
c
Dire
Controlling

08/01/2021
1-21 Managerial Functions
 Planning: the determination of human resource
program in advance to contribute to organization
goals
 Organizing: Human resource managers must
form an organization by designing the structure
of relationship among jobs, personnel and
physical factors

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1-22 Managerial Functions
 Staffing :Process through which organization ensures
it always has proper number of employees with
appropriate skills in right jobs at right time to achieve
organizational objectives
 Directing: It is getting people together and asking
them to work willingly and effectively for the
achievement of organizational goals.
 Controlling: It is the process of measuring current
performance and guide them towards the plan
08/01/2021
1-23 Operative Functions
 Procurement: It is concerned with the obtaining of the
proper kind and number of human resource necessary to
achieve organizational goal. It deals specifically with
determination of human resource requirements, their
recruitment, selection and placement
 Development: the development of human resources by
increasing their skill through training to achieve job
performance properly

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1-24 Operative Functions
 Compensation: Proper compensation system
takes into consideration, job classification, job
evaluation, wage policies, wage systems, wage
rates and wage incentive schemes
 Integration: It is concerned with the attempt to
affect a reasonable reconciliation of individual,
societal and organizational interests

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1-25
Operative Functions
 Maintenance: It deals with sustaining & improving the
conditions that have been established. It is pointed on
taking care of physical and mental wellbeing of the
employees, like safety & health measures and
employees’ service program.
 Separation: It is return of the employee to the society.
The organization is responsible for meeting a certain
requirement of due process in separation, as well as
assuring that the returned citizen is in a good shape as
possible ( most frequent in project works) 08/01/2021
Interrelationships of HRM Functions
1-26

 All HRM functions are

interrelated
 Each function affects other
areas

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1-27 Human Resource policies, procedures and
programs
 Human Resource policies
 A policy is a man made rule of predetermined course of action that is
established to guide the performance of work toward the organization
objectives.
 Human resource policies are those that individuals have developed to keep
them on the track towards their objectives.
 Policies define an area within which a decision is to be made and ensure that the
decision will be consistent with the objective.
 Examples: Recruiting fresh graduates, encouraging employee’s suggestions for
improvement, promoting every three years, attendance, grant employees
vacation etc.
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1-28 Human Resource policies, procedures and
programs
 Human Resource Procedures
 For the accomplishment of the objectives of human resource
policies, specific procedures and programs are needed.
 A procedure indicates how a policy is to be carried out. It
tells us where an action is to take place and at what stage.
 They are guides to action. They detail the exact manner in
which certain activities are accomplished
 Examples: selection procedure, leave processing procedure
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 Human Resource policies, procedures and
1-29
programs
Human Resource Programs
 Program consists of the entire broad course of action governing
employees at all levels.
 It is a stable plan of action that continues over an extensive period
of time.
 Programs represent simple or complex activities, developed to carry
out the policy. Programs are a complex of goals, policies,
procedures, rules tasks assignments, steps to be taken, resources to
be employed etc.
 Examples: improve the morale of workers, hiring and training of
personnel 08/01/2021
1-30 Evolution of Human Resource
Management
 Major Milestone (Human Relations Era,1927 onwards- Neo-
classical era)
 It was a movement spearheaded by Elton Mayo ( later on Dale
Carnegie, Abraham Maslow, and Douglas McGregor joined the
movement)
 The essence/core of the movement was the belief that the key to
higher productivity was employee satisfaction
 Hawthorne Studies by E. Mayo contributed a lot to the humanistic
issues which are very important to enhance organizational
productivity. 08/01/2021
1-31 Evolution of Human Resource
Management
Mayo Concluded that:
1.Individual behavior and sentiments are closely related.
2.Group influences significantly affected individual behavior.
3.Group standards established individual output.
4.Money was less a factor in determining output.
5.Group standards, group sentiments and security provided by
the group were responsible for higher productivity

08/01/2021
1-32 Evolution of Human Resource
Management
 Dale Carnegie published his work on “How to win
friends and win people”
1. Make others important through a sincere appreciation.
2. Strive to make good first impression.
3. Win people to their way of thinking and by “Never telling a man
that he is wrong”.
4. Change people by praising their good traits

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Physiological needs
Physiologicalneeds
08/01/2021
1
Decoration,
Decoration,Temperature,
Temperature,Space,
Space,Noise, and
Noise, and
Canteen facilities
Canteenfacilities
Safety needs
Safety needs
communication,
2
Job
Jobdescription,
description,role
roleclarity,
clarity,structure,
structure,communication,
safety report meetings, agreements, and contracts
safety report meetings, agreements, and contracts
Social
Social needs
needs
Joint
Joint Tasks, appreciation,sharing
Tasks, appreciation, offices,
sharingoffices,
3
recognition
recognitionand
andteam membership
teammembership
Esteem needs
Esteem needs
Being consulted, achievement,
Being consulted, achievement,
4
encouragement, recognition,
encouragement,recognition,
Personal /professional growth, autonomy
Personal /professional growth, autonomy
Self-Actualzn
Self-Actualzn
5
Hierarchy of Needs Theory 33
1-34 Evolution of Human Resource
Management
 Douglas McGregor
 Theory X and Theory Y were introduced by Douglas McGregor based on
two diagonally opposite views of human behavior.
 Theory X: McGregor assumed that average human being dislikes work and will try to
avoid it if possible. Employees are lazy, they must be controlled, coerced and even
punished to achieve organizational goals
 Theory Y: Theory Y suggests that average human being likes work and takes it as natural
as play. Employees can exercise self- direction and self-control and given the proper
working conditions, average person seeks responsibilities
 McGregor in his theory displayed a total recognition of humanistic
approach. He laid stress on delegation of authority, setting organizational
objectives and leaving it to the employees to attain the same.
08/01/2021
1-35 Evolution of Human Resource
Management
 Evolve to make HR more strategic (Recent Developments)
• Manpower Management vs Human Resource Management/human capital
management
• HR Outsourcing
• Professional Employer Organization
/employee leasing/
• A Global Perspective (Different HR
practices in Different countries
(Hire/fire , Life time employment)
Human Capital Management
08/01/2021
 1-36 Evolution of Human Resource
Management
 Human capital theory explains the resource based view
emphasizes that investment in people increases their value
to the organization.
 Workers have a set of skills developed by education and
training that generates a stock of productive capital.

08/01/2021
 Chapter Two: Human Resource Management Environments
1-37

Chapter outline:

 The external environment

 The internal environment
 Human resource management model

08/01/2021
1-38 Introduction
 Human Resource Management cannot take place in isolation from the
external and internal environment.
 The functions of Human resources are executed on permeable/open
systems.
 These environments affect the human resource functions, and shape
the policies and practices of human resource management.
 Today HRM is much more integrated into both the management and
the strategic planning process of the organization.

08/01/2021
1-39 I. External Environment
 External environment is the environment that exists outside the
organization.
 They influence the organizational performance but largely
beyond management’s control.
 It provides opportunities and threats to the organization and
human resource management.
 It usually includes the broad external environment, namely,
Political /Legal, Economic, Socio-Cultural and Technological
(PEST) environments.

08/01/2021
1-40 1. Political /Legal Factors
 The Political system, such as, democratic or not, nature of the
government and favouring the employee over the employer,
affects the human resource functions of an organization.
 Government through the enforcement of different laws also has
direct and immediate impact on HRM function.
 Government made different laws that regulate relationship
between employer and employees including issues, such as
equal employment opportunity (EEO), affirmative action, safety
and health, wages and salaries, hours of work, etc.
08/01/2021
1. Political /Legal Factors
1-41
 Equal Employment Opportunity: Government laws require
providing applicants an equal opportunity for employment with
regard to race, religion, sex, disability, age or national origin. There
should not be discrimination during recruitment and selection of
candidates employees.
 Affirmative Action: Affirmative Action is taken for the purpose of
eliminating the present effects of the past discrimination. It is the
practice of recruiting, hiring or staffing under-represented groups
or minorities, such as women, disability, and the disadvantaged
groups of the society.

08/01/2021
1-42 2. Economic Factors
 Economic parameter like GNP, per capital income,
an employment rate, inflation rate, etc affects HRM.
 If the economy is booming and unemployment rate
is low, it may be harder to acquire and retain the
staff.
 In times of economic decline, unemployment rate
increases and a greater choice of labor is available to
the employer

08/01/2021
1-43 3. Socio-Cultural Factors
 These factors are created by the society on human resource
management, such as demographic factors and culture.
 Demographic factors describe the composition of the
workforce, such as age, sex, race, and language.
 Culture is the belief and custom (religion) of the society.
 It affects the attitude and activities of workers.
 HR managers need to understand the culture and society
from which their employees are recruited.

08/01/2021
1-44 4. Technological Factors
 The world has never before seen technological
changes occur as rapidly as they are today.
 Technologies have an impact on HRM by changing
the entire working methods and systems.
 Technological change will continue to shift
employment from some occupations to others, i.e.,
labor-intensive and clerical jobs will decrease while
technical, managerial, and professional jobs will
increase
08/01/2021
II.
1-45
Internal Environment
 An internal environment is the environment that exists
inside the organization.
 It contributes to the strength and weakness of the
organization.
 There are a number of internal factors affecting HR
Managers work. Some of them are:
 HR department as it interact with other departments

08/01/2021
II. Internal Environment
1-46
 Strategy of an organization: Organizations have several
strategies (goals and objectives), such as growth strategy,
survival strategy or exit strategy.
 Leadership style of the organization: Leadership styles
practiced by top management and supervisors will affect the
relationship between supervisors and subordinates.
 The style of leadership might be autocratic, democratic or
laissez-faire.
 Leadership styles adopted in an organization influences
human resource functions.
08/01/2021
1-47 II. Internal Environment
 Nature of the task: The type of the task to be performed in
an organization highly affects human resource
management.
 This is because some jobs can attract or retain workers,
while others might be the causes of high labor turnover.
Degree
 The elements of the nature of the task include:
of physical exertion, Working environment,
Physical location, Degree of human
interaction
08/01/2021
 Summary of Human Resource Management Environment

Unions EXTERNAL ENVIRONMENT Society

Technology
1-48
INTERNAL ENVIRONMENT
Legal Considerations

Marketing Operations
g
a ff in
St

Unanticipated Events
Di
re
cti
ng
Plan

Human Resource
ning

Management
1

g
rollin
Economy

Other

Con

Shareholders
Finance Organizing Functional
Areas

08/01/2021

Customers Competition Labor Market

1-49 The Steps in Dealing Environmental Challenges

Monitor the
environment
Obtain and
analyze feedback

Evaluate the
impact

Take proactive
measures

08/01/2021
1-50 1. Monitor the environment
 Human resource managers must be always informed
about new changes in the environment.
 They can scan the environment through professional
associations, attendance of seminars, furthering their
formal education, reading newspaper and magazines,
and browsing the internet.

08/01/2021
1-51 2. Evaluate the impact
 After human resource managers acquire
new information about changes in the
environment, they should analyze and
evaluate the impact of the environment on
the organization’s human resource
management

08/01/2021
1-52 3. Take proactive measures
 Once the impacts of environmental changes are
evaluated, human resource managers implement
approaches that help the organization to reach
its goals by the aid of human resources.
 Note that, there are two opposite approaches of
human resource management, reactive and
proactive.

08/01/2021
1-53 3. Take proactive measures
 Reactive human resource management occurs when decision
makers respond to human resource problems, i.e., after the
actual problem happens.
 Proactive approach of human resource management anticipated
human resource problems and correction action begins before
the problem arises.
 To give effective and efficient solutions to human resource
problems, human resource managers should take proactive
measures

08/01/2021
1-54 4. Obtain and analyze feedback

 The results of proactive measures taken

by the HR manager are evaluated to see
if the desired outcomes are achieved.

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 1-55 CHAPTER TRHEE: JOB ANALYSIS AND HR PLANNING

Chapter outline:
 Definition of Job Analysis
 Products of Job Analysis
 Human Resource Planning

08/01/2021
1-56 Job Analysis
 Job - Consists of a group of tasks that must be performed for an
organization to achieve its goal
 Job analysis is a sense as the beginning point of many human resource
management functions.
 The first step in the process of acquiring the human resource to specify
precisely the kind of work that needs to be done and how just that
work should be done.
 Job analysis is the process of determining and reporting pertinent
information relating to the nature a specific job.
 It is the determination of the tasks which comprise the job and of the
skills, knowledge, abilities, duties and responsibilities of the jobholder
for successful job performance. 08/01/2021
  
When job analysis is needed?

1-57

 Job analysis is performed on the following three

occasions:
when the organization is formed
When new jobs are created in the organization
When jobs are changed (change in nature of
jobs), because of new technologies, working
methods, procedures or systems
08/01/2021
Job analysis provides the following information about the job
1-58

 Purpose of the job: why the job exists, what the jobholder is
expected to contribute and what the job seeks to contribute.
 Job content (tasks and duties):The nature and scope of the job in
terms of the tasks to be performed and duties to be carried out
 Job context: This specifies working conditions i.e. physical
working conditions, health and safety consideration, work
schedule, information about incentives and motivations, the
number of people interacting and their interaction.

08/01/2021
1-59 Job analysis provides the following information about the job

 Organizational factors: The reporting relationship of a

jobholder i.e. to whom he or she reports.
 Human or work requirement: Information regarding
human requirements of the job, such as job-related
knowledge or skills (education, training, work
experience etc.) and required personal
attributes(aptitude, physical attitudes, personality,
interests, etc)

08/01/2021
1-60 Job analysis provides the following information about the job

 Performance standard: It provides information about

expected performance levels (in terms of quantity, quality,
or speed for each job duty) by which an employee will be
evaluated.
 Machines, equipment’s, tools and work aids: Included
here would be information regarding products made, raw
materials processed, knowledge dealt with or applied (such
as finance or law), and services rendered (such as
counseling or repairing). 08/01/2021
61 Job Analysis Methods/Info
 Questionnaires
 Observation
 Interviews
 Employee recording
 Combination of methods

08/01/2021
 Products of Job Analysis
1-62
Job analysis is a conceptual and analytical process or action
which results in job description and job specification
Tasks Responsibilities Duties
• Human Resource Planning
• Recruitment
• Selection
Job Descriptions
• Training and Development

Job vital for •

•
Performance Appraisal
Compensation and Benefits
Analysis
Job Specifications • Safety and Health
• Employee and Labor Relations
• Legal Considerations
• Job Analysis for Teams

Knowledge Skills Abilities

08/01/2021
1-63 Job Description (What the job entails)
 Job description is the immediate product of job analysis.
 It is a document that provides information regarding the task,
duties, responsibilities, reporting relationships, working
conditions and supervisory responsibilities of the job.
 It concentrates on the job and lists what a jobholder actually
does, how he/she does it, and under what conditions the job is
performed.
Job Specification
 It is a list of human requirements, such as required education,
skills, personality traits, experience and physical attributes.

08/01/2021
1-64 Job specification should include:
 Physical characteristics, such as height, weight, sight, physical
structure, Health, etc.
 Psychological characteristics, such as decision making ability,
analytical view, mental abilities, etc.
 Personal characteristics, such as behavior, enthusiasm,
leadership qualities, etc.
 Qualification and experience, such as academic qualification,
experience, training etc

08/01/2021
1-65
Human Resource Planning

 Human resource planning is a process by

which an organization ensures that:
 it has the right number and kinds of people
 at the right place
 at the right time
 capable of effectively and efficiently completing those tasks that will
help the organization achieve its overall strategic objectives

08/01/2021
1-66 Human Resource Planning

HR planning must be:

 linked to the organization’s overall strategy to
compete domestically and globally.
 translated into the number and types of
workers needed

08/01/2021
1-67 Linking Organizational Strategy to HR
Planning
STRATEGIC DIRECTION HR LINKAGE

mission determining organization’s business

setting goals and objectives

objectives and goals

strategy determining how to attain goals and

objectives

determining what jobs need to be done and

structure
by whom

matching skills, knowledge, and abilities

people to required jobs
08/01/2021
1-68 The Process of Human Resource Planning

1. Assess Organizational Objectives and Strategies

2. Forecasting Labor Demand (Determine the Total Human
Resource Requirement)
3. Forecasting Labour Supply
4. Determine the Net Human Resource Requirement (Gap
Analysis)
5. Develop Action Plans to Manage the Outcomes of HRP
Process

08/01/2021
1-69 1.Assess Organizational Objectives and Strategies

 The human resource planning process begins

with considering the existing organizational
objectives and strategies
 The critical assessment of existing organizational
objectives helps human resource planners
deduce/assume the quantity and the kind of
employees required for achieving of these
objectives
08/01/2021
 2.Forecasting Labor Demand (Determine the Total Human Resource Requirement)
1-70

 Labor demand forecasting involves predicting the

quantities and kinds of human resources the
organization will require at some future point in
time to achieve its strategic objectives.
 Labor demand forecasting begins with the
analysis of the organization's business and
operations, such as sales forecast, productivity,
etc.
08/01/2021
1-71 3.Forecasting Labour Supply
 Whereas the labour demand forecast projects
human resource needs of an organization, the
labour supply forecast projects human resource
availability.
 Labour supply forecasts are typically broken
down into two categories:
Internal Supply and External Supply
08/01/2021
 4. Determine the Net Human Resource Requirement (Gap Analysis)
1-72

  

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5.Develop Action Plans to Manage the Outcomes of HRP Process
1-73

 The result obtained from the above step will initiate action planning,
i.e., developing action plans to fulfill the needs of human resources in
the organization.
 If Net HR Requirement is Positive (HR Deficit Supply) ……Hire (or
overtime, outsource, T&D)
 If Net Human Resource Requirement is Negative (HR Surplus supply)
…..reduce HR (Lay off, downsize, Early retirement, Job sharing, pay
reduction..etc)

08/01/2021
1-74
Purposes of Human Resource Planning
 To expand the operation of the organization
 To reduce labor cost
 To utilize human resources efficiently and
effectively
 To avoid disruption in operation
 For effective employee development program
 To maintain good industrial relation
08/01/2021
Chapter Four: Recruitment, Selection, and Orientation
1-75

Chapter outline:
 Recruitment
 Selection
 Orientation

08/01/2021
 Introduction
1-76

 Recruitment and Selection are closely connected functions of an

organization.
 Both the activities aim at obtaining suitably qualified employees.
 Recruitment is the process of generate a pool of qualified
candidates for a particular position.

08/01/2021
 Factors governing/affecting recruitment
1-77

Like most of the human resource functions,

recruitment is affected by both the internal and
external factors.
These factors could facilitate or limit the
recruitment processing attracting large number
of qualified job candidates

08/01/2021
 Internal Factors
1-78

• Working conditions of the organization

• Promotional Opportunities
• Company pay package (Salary level, and type and extent of benefits)
• Company product
• Cost of recruitment
• Company size
• Companies growth rate
• Organizational culture

08/01/2021
 Internal Factors
1-79

• Career planning and growth

• Geographical spread of the company operation
• Image of the organization (Company name and
fame)
• Ability and skill of the management to stimulate the
candidates
• Quality of the recruitment process.
• Other Personnel policies and practices

08/01/2021
 External Factors
1-80

• Personnel policies and practices of other organizations

regarding working conditions, salary scale, benefits,
promotional opportunities, employee relations etc.
• Information system like, employment exchange, Tele-
recruitment (internet)
• Career opportunities in other organization.
• Government regulations
• Labor market conditions

08/01/2021
1-81 External Factors

• Supply and demand factors

• Scio-economic factors
• Local candidates
• Influence of trade unions
• Government regulation regarding reservations of certain number of
vacancies to candidates based on community, religion, caste, sex and
• Influence of recommendations, nepotism etc

08/01/2021
 Sources and Methods of Recruitment
1-82

• There are two general sources of recruitment:

• Internal, when the business looks to fill the
vacancy from with its existing work force, and
• External, when the business looks to fill the
vacancy from any suitable applicant outside
the business

08/01/2021
 Internal Sources
1-83

• Through transfers and promotions

• Promotion is moving an employee from a lower position or job
status to a higher position or job status. This is done when
individuals have the potential and capacity to carryout the
requirement of the higher position and job status.
• Transfer is moving one person from the existing position to another
position with equal status

08/01/2021
 Advantages of internal recruitment
1-84

• It is a relatively cheap way of recruiting (vacancies can be advertised at little cost

and it can also save time).
• Organizations typically have a better knowledge of internal applicants’
skills, knowledge and abilities.
• Inside job candidates have better knowledge of the organization’s
policies, procedures and other special characteristics and its operation.
Thus, they require less orientation and training than external
candidates.
• Recruiting from within can have a significant positive effect on
employee motivation and morale when it creates promotion
opportunities.
• It enhances employee commitment and job satisfaction
08/01/2021
 Disadvantages of internal recruitment
1-85

• Internal recruiting simply promulgates the old ways of doing

things; that creative problem solving may be hindered by lack
of new blood or a sort of “managerial inbreeding”
• Infighting for promotions can become overly intense and have a
negative effect on the morale and performance of employees
who are not promoted.
• An organization can suffer if it uses inferior internal sources just
for the reason of boosting the morale of current employees
(promotion based on seniority)

08/01/2021
 Employers require external sources:
1-86

• To fill entry-level jobs (jobs for the

beginners)
• To acquire skills not possessed by current
employees
• To obtain employees with different
background, to provide new ideas
08/01/2021
1-87
Sources of external recruitment

• Schools, colleges and Universities

• The unemployed
• Competitors and other organizations
• Private and public employment agencies
• Professional Associations

08/01/2021
 Advantage of external recruitment
1-88

• Large number of applicants (a pool of talent

is much larger than the internal sources).
• Can bring new ideas (insights and
perspectives) to organization
• Expand external relation of an organization
• Avoid internal promotion politics

08/01/2021
 Disadvantage of external recruitment
1-89

• Attracting, contacting and evaluating potential

employees can be more difficult and can be very costly.
• Employees hired from the outside need a longer
adjustment or orientation period. As a result, it might
take a significant time before they can perform with
their full potential.
• It can be one reason for the reduction of morale of
internal employees who feel qualified to do the job.

08/01/2021
 Recruitment Methods
1-90

• Internal Methods
• External Method

08/01/2021
1-91
Internal Recruitment Methods
• Job posting and bidding is an internal method of
recruitment in which notices of vacant positions are
posted in central locations throughout the organization
and existing employees are given a specified length of
time to apply for the available positions.
• Job posting is a process where announcements of
positions are made available to all current employees
through organization newsletters, bulletin boards, and
so on.
• Example: promotions and transfers
08/01/2021
1-92 External Recruitment Methods
 There are different External Recruitment Methods
 Job Advertisement: Advertisement is widely accepted and
frequently used method of recruitment, through it mostly
provides one way communication.
 College Recruiting: It involves recruitment from educational
institutions that offer opportunities to recruit recent
graduates.

08/01/2021
1-93 External Recruitment Methods

 Employment Agencies: employment agencies are

used by many organizations for identifying potential
workers. There could be public or private employment
agencies. Those agencies have information on job
seekers in terms of qualifications, skills, interests, etc
and can be good sources of employment by
organizations.

08/01/2021
 External Recruitment Methods
1-94

 Employee referrals:
 Walk-ins /Write-ins or Unsolicited application
 Internet (websites):
 Apprenticeship/Internship: An apprenticeship is a special
form of recruiting in which a student is placed in a temporary
job. In this arrangement, there is no obligation by the company
to hire the student permanently or by the student to accept a
permanent position with the firm following graduation

08/01/2021
 Selection

1-95

Selection involves choosing competent and qualified applicants for the job.
 
Selection Process
Preliminary Selection/Empl
Selection oyment Testing

Diagnostic/Comp
rehensive
Interview
08/01/2021
1-96 1. Preliminary Selection

Application form: Completing an application form is

normally the first step in most selection processes. The
application provides basic employment information for
use in later steps of the selection process and can be
used to screen out unqualified applicant
Preliminary Interview: A preliminary interview is
usually conducted after the application form has been
completed. It is a brief, exploratory, interview that is
normally conducted by human resource department
08/01/2021
1-97 2. Employment Testing

 This step helps to gather further and detailed information

about applicants and thus be able to assess their suitability
to the job.
 Employment tests can be divided into two main types:
 Testing Ability: those designed to measure applicants’
ability
 Testing Psychological Disposition: those that set out to
assess their psychological disposition

08/01/2021
1-98 3. Diagnostic /Comprehensive Interview

 A selection interview is a selection procedure designed to predict

future job performance on the basis of applicants’ oral responses
to oral inquiries
 The purpose of this interview is to supplement information
obtained in other selection procedures

08/01/2021
Top Qualities Employers Seek in Job Candidates
1-99

08/01/2021
Interviewing Tips

08/01/2021
11-100
4. Reference checking/ background investigation
1-101

 It involves contacting individuals who are listed as references

to the applicant.
 Personal reference checks may provide additional
information about the applicant and allow verification.
 An effective and comprehensive background investigation
relates to the previous employment, education, personal
references, criminal history, credit history, etc

08/01/2021
1-102
5. Physical Examination

 Physical evaluation is normally required only for the

applicant who is offered the job, and the job offer is
contingent on the applicant passing the physical
examination.
 The exam is given to determine whether the applicant
is physically capable of performing the job and also to
determine his/her eligibility for group life, health, and
disability insurance
08/01/2021
 6. Final Selection Decision
1-103

 The final step in the selection process is choosing the individual

for the job. PLACEMENT: Having made the decision on who to
appoint and an offer (verbal or written) to the successful
candidate, it is then incumbent upon employ to undertake a further
set of related activities.
Orientation
 After the selection process is completed, new employees must be
oriented to their job and the organization.
 This can be done by oral or written communications like manuals,
guidelines, etc.
08/01/2021
1-104
Orientation issues in different levels

1. Organizational Orientation: The topics presented in the

organizational orientation should be based on the needs of both the
organization and the employee.
 Policies and procedures review
 Compensation
 Benefits
 Safety and accident prevention
 Employees and union relations
 Physical facilities

08/01/2021
1-105 Orientation issues

2. Departmental and Job Orientation

The content of departmental and job orientation depends
on the specific needs of the department and the skills and
experience of the new employee
 Department functions
 Job duties and responsibilities
 Policies and procedures
 Introduction to department employees

08/01/2021
Chapter Five: Management of Performance
Appraisal, Training and Development

Chapter Outline:
Performance Appraisal
106 Performance Management
Training and Development

08/01/2021
107 Performance Appraisal
 System of review and evaluation of job performance
 Assesses accomplishments and evolves plans for development
 Performance appraisals are used to assess employee’s
performance and provide a platform for feedback about past,
current, and future performance expectations.
 Performance appraisal is variously called employee rating,
employee evaluation, performance review, performance
evaluation, or results appraisal
08/01/2021
108 Performance Appraisal
 Performance appraisals are widely used for
administering wages and salaries, giving
performance feedback, and identifying individual
employee strengths and weaknesses.
 Indeed, performance appraisals can provide answers
to a wide array of work-related questions, and by
advancing a road map for success, poor performance
can be improved.
08/01/2021
109
Performance Management
 Process that significantly determines how
organization performs
 Managers and employees work together to set
expectations, review results and reward
performance.
 Platform for managing individual and team
performance 08/01/2021
110
The Nature of Performance Management

 The performance management process starts by

identifying the strategic goals an organization needs
to accomplish to remain competitive and profitable.
 After these ideas are crystallized, managers identify
how they and their employees can help support
organizational objectives by successfully
completing work

08/01/2021
111 Performance Management Linkage

08/01/2021
112 Components of Performance
Management

08/01/2021
113
Types of Performance Information

08/01/2021
114 Uses of Performance Appraisals

08/01/2021
115 Who Performs the Appraisal?
 Evaluation Teams
 Subordinate Appraisal
 Immediate Supervisor
 Customers
 Higher Management
 “360° Appraisals”
 Self-Appraisals
 Peers
(Co-Workers)

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 116 Supervisor Appraisal
 Performance appraisal done by an
employee’s manager and often reviewed by
a manager one level higher.

08/01/2021
117 Self-Appraisal

 Performance appraisal done by the employee being

evaluated, generally on an appraisal form
completed by the employee prior to the
performance review.

08/01/2021
 118 Subordinate Appraisal
 Performance appraisal of a superior by an employee,
which is more appropriate for developmental than for
administrative purposes.

08/01/2021
 119 Team Appraisal
 Performance appraisal, based on TQM
concepts, that recognizes team accomplishment
rather than individual performance.

08/01/2021
120 The 360º Appraisal/modern/
Supervisor

Other Superiors Other Superiors

Individual Staff
Peers Customers
Self-Assessment

Teams Teams

Sub-Ordinates

08/01/2021
121 Performance Appraisal Methods

 Students assignment
(5-10%)

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122 The Appraisal Period

 Prepared at specific intervals

 Usually annually or semiannually
 Period may begin with employee’s
date of hire
 All employees may be evaluated at
same time

08/01/2021
123
Effective Appraisal System
 Job-related criteria
 Performance expectations
 Standardization
 Trained appraisers
 Continuous open communication
 Performance reviews
 Due process

08/01/2021
124
Legal Implications
 Performance appraisal criteria based on job analysis
 Formal evaluation criteria that limit managerial discretion/
judgment
 A rating instrument linked to job duties and responsibilities
 Documentation of the appraisal activities
 Personal knowledge of and contact with each appraised
individual
 Training of supervisors in conducting appraisals
 Counseling to help poor performers improve
08/01/2021
125 Training and Development
 Having qualified and well trained personnel, to
perform various jobs, is a very basic necessity for
any organization.
 Training and development of employees becomes
necessary because of changing technology, up
gradation of skills and knowledge of the workers,
the need to increase the productivity of the workers,
etc…so as to retain the competitive edge.
08/01/2021
126 Training and Development
 Training is a process of learning a sequence of
programmed behavior, which helps the trainees in
improving their job performance and better apply their
knowledge.
 Whereas development covers not only performance
improvement activities but also those which enhance
personality, gain better attitudes, values and behavior.
 The scope of development is wider than training.
08/01/2021
 127 Distinction between training and development
Learning Dimension Training Development

Who is the target? It is given to technical/ non-managerial It is given for managers

people
What knowledge to transfer? People require technical & operational Executives require conceptual and
knowledge and skill theoretical knowledge

Why? • For job improvement. • For general development

• It is job centered - for specific job. • It is career oriented or growth
oriented - for all activity of job

When or time duration? It is short-term process. It is long-term process

08/01/2021
 128 Needs and purpose of training
 Economic, social, technological, and government changes can make the skills learned today
obsolete in the future.
 Planned organizational changes (such as the introduction of new equipment) can make it
necessary for employees to update their skills or acquire new ones.
 Performance problems within an organization such as low productivity or large scrap
problems can be reduced by training.
 Regulatory, contractual, professional, or certification issues can require an employer to
provide training for its employees
 To reduce supervision time, minimize spoilage and wastage of material
 To assist workers to perform at the optimum level in current jobs.

08/01/2021
129 Needs and purpose of training
 To help the worker in adopting safe work procedures.
 To help the workers in their personal growth, within the organization as well as
outside.
 To increase the job satisfaction since training can improve the employee’s self-esteem.
 To prepare employees for promotion to positions which require added skill and
knowledge. Trained workers will be given priority in promotions and transfers.
 To lower the cost of wastes and equipment maintenance.
 To bridge the gap b/n the existing performance and performance and potential
performance.
 To improve health and safety
08/01/2021
130 Training and Development Process
Determine T&D Needs

Establish Specific Objectives

Select T&D Method(s)

Implement T&D Programs

Evaluate T&D Programs 08/01/2021

 1. Determining Training and Development Needs
131

In order to compete
effectively, firms
must keep employees
well trained.

08/01/2021
 2. Establishing Training and Development
132 Objectives

 Desired end results

 Clear and concise objectives must be
formulated

08/01/2021
 3. T&D Methods
133

 Classroom Programs  Distance Learning and

 Mentoring Videoconferencing
 Coaching  E-learning
 Role Playing  On-the-Job Training
 Simulations  Job Rotation
 Internships
08/01/2021
134
Classroom Programs
 Continue to be effective for
many types of employee
training
 May incorporate some of
other methods

08/01/2021
 Mentoring
135

 Approach to advising, coaching, and nurturing, for creating

practical relationship to enhance individual career, personal,
and professional growth and development
 Mentor may be located elsewhere in organization or in
another firm
 Relationship may be formal or informal

08/01/2021
136
Coaching

 Often considered responsibility of immediate boss

 Provides much assistance as a mentor

08/01/2021
 Role Playing
137

 Respond to specific problems they may actually encounter in

jobs
 Used to teach such skills as:
 interviewing
 grievance handling
 performance appraisal reviews
 conference leadership
 team problem solving
 communication
08/01/2021
138 Simulations/Vestibule Training

Training devices that

model the real world or
programs replicating
tasks away from the job
site

08/01/2021
 Distance Learning and Video conferencing
139

 Interactive training
 Used to:
 increase access to training
 ensure consistency of instruction
 reduce cost of delivering T&D programs

08/01/2021
140 E-Learning

Umbrella term describing online

instruction

08/01/2021
141 On-the-Job Training

 Informal approach that permits employee to learn job tasks

by actually performing activities
 Most commonly used T&D method
 No problem transferring what has been learned to the task

08/01/2021
 Job Rotation
142

 Employees move from one job to

another to broaden experience
 Helps new employees understand
variety of jobs

08/01/2021
143 Internships

 Training approach where university students divide their

time between attending classes and working for an
organization
 Excellent means of viewing potential permanent
employee at work
 Students are enabled to integrate theory with practice

08/01/2021
Chapter six: Compensation, Promotion, Transfer and
Separation
Chapter Outline:
Compensation
Promotion
Transfer, and
Separation
144

08/01/2021
145 Compensation/ Employees Benefit
 A typical business organization furnishes different types of
benefits to employees and their families in addition to wage
and salaries.
 Compensation is refers to all extrinsic rewards employees
receive in exchange for their work.
 Usually compensation is composed of the base wage or
salary, any incentives or bonuses, and benefits.

08/01/2021
146 Compensation/ Employees Benefit
 The base wage or salary is the hourly, weekly, or monthly pay
employees receive for their work.
 Incentives are rewards offered in addition to the base wage or salary
and usually directly related to performance.
 Benefits are rewards employees receive as a result of their
employment and position with the organization

08/01/2021
147 Types of Compensation /Remuneration and Benefits/

 Remuneration and benefit plans,

collectively called employee
compensation, fall in two broader classes.
These are:
 Direct, and
 Indirect compensation
08/01/2021
148
Direct Compensation

 Direct compensation is used to

describe the cash received in the form
of base salary, overtime pay, shift
differentials, bonuses, and sales
commissions etc.

08/01/2021
149 Wage and Salary
 In our day-to-day conversation, two terms, wage and
salary are used interchangeably.
 wage and salary dictate the ability of business
organizations to attract employees from the labor
market, and the possibility of these organizations to
motivate and hold their employees.

08/01/2021
Approaches/strategies
150 to the determination of wage and salary

 The time rate system of calculating wage

 The Piece-Rate System of Calculating Wage
 Payment by Result System (PBR)
 Balance or Debt Methods
 Incentive Rate System

08/01/2021
 1. The time rate system of calculating wage
151

 This system is perhaps the oldest system of calculating wage or salary.

 It is also the most commonly used system of salary and wage
calculation.
 It refers to the payment of a predetermined rate for normal time of
work and relative to a time limit, such as an hour, day, week and
month
 This method is generally common for clerical, supervisory and
managerial personnel.

08/01/2021
152 2. The Piece-Rate System of Calculating Wage
 Piece rate system pay directly related to units of out put
produced.
 Different individuals have proposed different
approaches to calculating wage based on output
produced by an employee.
 Taylor's Piecework Plan
 Merrick Differential Piece Rate Plan

08/01/2021
153 Taylor's Piecework Plan
 Taylor proposed for an incentive plan that has two-
piece rates
 These rates are the higher and the lower piece rates
 In applying such plan, management sets a standard
achievable by an average employee by taking different
factors that influence the performance of the employee
in to consideration.

08/01/2021
154 Merrick Differential Piece Rate Plan
 Merrick's differential piece rate plan is a modification and an
improved version to Taylor's piece rate plan.
 Merrick realized that it was necessary to have two categories
of the workers, i.e. efficient and inefficient.
 According to him, there are some employees who produce
more only for their own personal progress.
 These employees deserve to be encouraged and paid higher
rate.

08/01/2021
155 3. Payment by Result System (PBR)

 Payment by result is a payment system under

which money rewards vary with the measured
changes in performance according to
predetermined rules.
 It relates the pay or part of the pay received by
the employee to the number of items s/he
produces or the time s/he takes to do a certain
amount of work (one of the two). 08/01/2021
156 4. Balance or Debt Methods
 This is a combination of time and piece rate.
 The worker is guaranteed an hourly or a day
rate with an alternative piece rate.
 If the earnings of the worker calculated at the
piece-rate exceed the amount which he would
have earned if paid on the time basis, he gets
credit for the balance, namely the excess piece-
rate earning over the time rate earnings
08/01/2021
157 5. Incentive Rate System
 Methods commonly used in incentive rate system of wage
calculation involve:
 Straight piece work:- where a constant rate of pay per unit
of output is made, and
 Bonus plans:-This involves in general the determination
of standard tasks and bonus payments are made when a
worker produces above a standard

08/01/2021
158 Indirect Compensation

 Indirect compensation includes benefits

and services.
 It can be defined as all employer provided
reward and service other than wage and
salaries.

08/01/2021
159 Typical decisions on benefits plans
 Competitiveness: how should our benefits compare
to our competitors?
 Coverage and Forms: which benefits should we offer?
 Communications: how can we best inform employees
about their benefits
 Choice: what degree of choice or flexibility can we
include? How can we accommodate employee’s
interests and concerns?

08/01/2021
160 Fringe Benefits
 ILO has defined “fringe benefits” as:“Wages are often
augmented by special cash benefits, by the provision of
medical and other service, or by payments in kind that from
part of the wage for expenditure on the goods and service.
 In addition, workers commonly receive such benefits as
holidays with pay, low-cost meals, low-rent housing, etc.
 Benefits that have no relation to employment or wages
should not be regarded as fringe benefits, even though they
may constitute a significant part of the workers total income.”

08/01/2021
161 Legal Requirements considerd
 The government plays a central role in the design of any benefits
package.
 While controlling the cost of benefit is a major concern of
employers, the social and economic welfare of citizens is the major
concern of the government.
 Income- maintenance laws were enacted to provide employees
and their families with income security in the case of death,
disability, unemployment, or retirement.
 These are pay allocated for retirement, survivors, and disability
insurance, redundancy, lay off
08/01/2021
162 Promotion, Transfer and Separation
 Promotion basically is a reward for efficiency. It is conferment
of additional benefits, usually in the form of higher pay, for an
increase in responsibility or skill which is formalized by an
increase in status or rank.
 Where as, transfer is the lateral movement of employees from
one position, division, department or unit to another.
 Generally transfer does not involve any significant change in
compensation, duties responsibilities or even status

08/01/2021
163 Promotion

08/01/2021
164 Promotions
 Promotion refers to upward movement of an
employee from current job to another that is higher
in pay, responsibility and/or organizational level.
 Promotion brings enhanced status, better pay,
increased responsibilities and better working
conditions to the promotee.
 There can, of course, be ‘dry promotion’ where a
person is moved to a higher level job without
increase in pay
08/01/2021
165 Bases of Promotion
 Organizations adopt different bases of
promotion depending upon their nature, size,
management, etc.
 Generally, they may combine two or more
bases of promotion.
 The well-established bases of promotion are
seniority and merit.
08/01/2021
Demotion
166

08/01/2021
167 Demotion
 Demotion is the antithesis of promotion where in an employee
is demoted to the post at a lower level.
 Example: a manager may be demoted as supervisor
 Demotion has been defined as the assignment of an individual
to a job of lower rank and pay usually involving lower level of
difficulty and responsibility.
 Demotions serve as a useful purpose in the sense that they keep
the employees alert and alive to their responsibilities and duties.

08/01/2021
168 Causes of Demotion
 When departments are combined, bosses are often required to
accept lower level position since jobs are eliminated.
 Inadequacy on the part of the employees in terms of job
performance, attitude and capability.
 When older employees are unable to adjust as per change in
technology.
 Ill health or personal reasons.
 Demotion is also used as disciplinary measure.

08/01/2021
169
Transfer

08/01/2021
170 Transfer
 A transfer is a change in job assignment.
 A transfer has to be viewed as a change in assignment in which an
employee moves from one job to another in the same level of
hierarchy, requiring similar skills, involving approximately same
level of responsibility, same status and same level of pay.
 A transfer does not imply any ascending (promotion) or
descending (demotion) change in status or responsibility.

08/01/2021
171 Managing Employee Separations

 An employee separation occurs when an

employee ceases to be a member of an
organization.
 The turnover rate is a measure of the rate at
which employees leave the firm.
 Employee separations can and should be
managed.
08/01/2021
172 Types of Employee Separations
 Employee separations can be divided into two
categories.
 Voluntary separations are initiated by the employee.
 Involuntary separations are initiated by the employer.
 To protect themselves against legal challenges by
former employees, employers must manage
involuntary separations very carefully with a well-
documented paper trail/track
08/01/2021
173 Voluntary Separations

 Voluntary separations occur when an employee

decides, for personal or professional reasons, to
end the relationship with the employer.
 The decision could be based on the employee
obtaining a better job, changing careers, or
wanting more time for family or leisure activities

08/01/2021
174
The two types of voluntary Separation

 Quits: The decision to quit depends on (1) the employee’s

level of dissatisfaction with the job and (2) the number of
attractive alternatives the employee has outside the
organization.
 Retirements: A retirement differs from a quit in a number
of respects.
 A retirement usually occurs at the end of an employee’s
career

08/01/2021
175 Involuntary Separations

 An involuntary separation occurs when management

decides to terminate its relationship with an employee due
to (1) economic necessity or (2) a poor fit between the
employee and the organization.
 Involuntary separations are the result of very serious and
painful decisions that can have a profound effect on the
entire organization and especially on the employee who
loses his or her job.
08/01/2021
176 The two types of involuntary separations

 Discharges: A discharge takes place when management

decides that there is a poor fit between an employee and
the organization. The discharge is a result of either poor
performance or the employee’s failure to change some
unacceptable behavior that management has tried
repeatedly to correct
 Layoffs: Layoffs are a means for an organization to cut
costs. Many companies have been facing tough economic
challenges, and lay­offs will have been part of their cost-
cutting efforts.
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 Chapter Seven: Integration and Maintenance
.
• Employee discipline
• Labor relation
• Collective bargaining
• Grievance handling
177

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1781. Respecting Employee Rights and Managing
Discipline
 Just as employees are given certain rights they also
have a number of responsibilities /obligations/,
regardless of their place of work.
 If an employee fail to meet the responsibilities of his
or her position, the HR manager needs to
understand how to effectively and developmentally
discipline that employee.
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179 Employee Rights
 A right is the ability to engage in conduct that is protected
by law or social sanction, free from interference by
another party (such as an employer).
 For example, employees have the legal right to form a
union.
 It is illegal for an employer to discourage employees from
exercising their right to form a union by withholding pay
increases from those who support the union.

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180 Categories of employee rights

Statutory Rights Contractual Rights Other Rights

Protection from discrimination Employment contract Ethical treatment

Safe working conditions Union contract Privacy (limited)

Right to form unions Implied Contracts Free speech (limited)

(employment policies)

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181 Statutory Rights
 Employees’ statutory rights are protected by specific laws
enacted by government.
 Employees’ key statutory right is protection from
discrimination based on
 race,
sex,
religion, national origin, age, handicap, or other protected
status under the law and other equal employment
opportunity law
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182 Contractual rights
 Contractual rights are based on the law of contracts.
 A contract is a legally binding promise between two or more
competent parties.
 A breach of contract, in which one of the parties does not
perform his or her promised duty to the other party, is
subject to legal remedy.
 Both employers and employees have rights and obligations
to each other when they enter into a contract.

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183 Other Rights
 Employees often expect certain other rights in addition to
statutory and contract rights.
 These include a
 right to ethical treatment and
limited rights to free speech and privacy.
 These rights differ from the first two categories of rights
in an important way: Although employees may expect
these rights, they may have no legal recourse if they feel
that these rights have been violated
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184 Disciplining Employees
 Employee discipline is a tool that managers rely
on to communicate to employees that they need to
change a behavior.
 For example, some employees are habitually
 late to work,
 ignore safety procedures,
 neglect the details required for their job, act rude
to customers, or engage in unprofessional conduct
with coworkers
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185 Progressive Discipline
 The most commonly used form of discipline, progressive discipline,
consists of a series of management interventions that gives
employees opportunities to correct their behavior before being
discharged.
 Progressive discipline procedures are warning steps, each of which
involves a punishment that increases in severity the longer the
undesirable behaviors persist
 If the employee fails to respond to these progressive warnings, the
employer is justified in discharging the individual
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186 Categories of Employee Misconduct
Minor Violations Serious Violations
Absenteeism, Dress code violation Drug use at work

Smoking rule violation Theft

Safety rule violation Dishonesty

Horseplay/fun, Tardiness/unpunctuality Physical assault upon a supervisor

Sleeping on the job Sabotage of company operations

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A
187
four-step Progressive Discipline procedure
 Verbal warning: An employee who commits a minor violation receives a verbal warning from the
supervisor and is told that if this problem continues within a specific time period, harsher punishment will
follow. The supervisor provides clear expectations for improvement.
 Written warning: The employee violates the same rule within the specified time period and now receives
a written warning from the supervisor. This warning goes into the employee’s records. The employee is
told that failure to correct the violation within a certain time period will result in more severe treatment.
 Suspension: The employee still fails to respond to warnings and again violates the work rule. The
employee is now suspended from employment without pay for a specific amount of time. He or she
receives a final warning from the supervisor, indicating that discharge will follow upon violating the rule
within a specified time period.
 Discharge: The employee violates the rule one more time within the specified time period and is
discharged.

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188 Positive Discipline
 The emphasis on punishment in progressive discipline
may encourage employees to deceive their supervisor
rather than correct their actions.
 To avoid this outcome, some companies have replaced
progressive discipline with positive discipline, which
encourages employees to monitor their own behaviors and
assume responsibility for their actions.

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189 The Right to Appeal Discipline
 Sometimes employees believe they have been
disciplined unfairly, either because their supervisors
have abused their power or because their
supervisors are biased in dealing with individuals
whom they like or dislike.
 For a disciplinary system to be effective, employees
must have access to an appeals procedure in which
others (who are perceived to be free from bias) can
examine the facts.
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190 Managing Difficult Employees
 Poor Attendance
 Poor Performance

(an employee’s refusal to obey a direct

 Insubordination
order from a supervisor)
 Workplace Bullying/harassment (persistent, offensive, abusive,
intimidating, malicious or insulting behavior, abuses of power
or unfair penal/strict sanctions, which makes the recipient feel
upset, threatened, humiliated, or vulnerable)
 Alcohol-Related Misconduct
 Illegal Drug Use and Abuse
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191 2. Labor relation
 Why Employees Join Unions ?
 Individuals join unions for reasons as diverse as the people
themselves.
 Following are the major reasons
 Higher Wages and Benefits
 Influence over Work Rules
 Greater Job Security
 Compulsory Membership
 Dissatisfaction with Management

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192 Higher Wages and Benefits
 The power and strength of numbers sometimes
help unions obtain higher wages and benefit
packages for their members than employees can
negotiate individually.
 One or two employees walking off the job over a
wage dispute is unlikely to significantly affect most
businesses, but hundreds of workers going out on
strike can temporarily disrupt or even close down
a company.
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193 Greater Job Security

 Unions provide their members with a sense of

independence from management’s power to
arbitrarily hire, promote, or fire.
 The collective-bargaining contract will
stipulate rules that apply to all members, thus
providing fairer and more uniform treatment.

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194 Influence over Work Rules

 Where a union exists, workers can help determine the conditions under
which they work and have an effective channel through which they can
protest conditions they believe are unfair.
 Therefore, a union not only represents the worker but also provides rules
that define channels in which worker complaints and concerns can be
registered.
 Grievance procedures and rights to third-party arbitration of disputes are
examples of practices typically defined and regulated as a result of union
efforts.

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195 Compulsory Membership
 Many labor agreements contain statements commonly referred to as union
security arrangements.
 When one considers the importance of security arrangements to unions—
importance related to numbers and guaranteed income—it is no wonder that
such emphasis is placed on achieving a union security arrangement that best
suits their goals.
 Such arrangements range from compulsory union membership to giving
employees the freedom in choosing to join the union

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196 Dissatisfaction with Management
 Among various reasons why employees join a
union, we see one common factor: management,
especially the first-line supervisor.
 If employees are upset with the way their
supervisor handles problems, upset over how a
co-worker has been disciplined, and so on, they
are likely to seek help from a union.
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197 The Role of the Manager in Labor Relations
 Focus on Collective Bargaining: Unions and
management are the dominant players in the labor
relations system.
 Generally, government takes a neutral role, allowing the
players to make the rules that govern their particular
workplace.
 Under a collective bargaining system, unions and
management negotiate with each other to develop the
work rules under which union members will work for a
stipulated period of time, usually two or three years
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198 Managing the Labor Relations Process

 three phases of labor relations that managers and labor relations

specialists must deal with are:
 (1) union organizing, in which employees exercise their right to
form a union;
 (2) collective bargaining, in which union and management
representatives negotiate a labor contract; and
 (3) contract administration, in which the labor contract is applied to
specific work situations on a daily basis

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199 Managing the Labor Relations Process

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200 Phase 1: Union Organizing

 Union organizing takes place when

employees work with a union to form
themselves into a cohesive group.
 The key issues that managers confront in a
union organizing campaign are union
solicitation, pre-election conduct, and the
certification election
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201 Phase 2: Collective Bargaining

 Collective bargaining means a negotiation made

between employers and workers organizations or
their representatives concerning conditions of
work or collective agreement or the renewal and
modifications of the collective agreement.
 Most labor contracts last for two to three years,
after which they are subject to renegotiation.

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202 Phase 2: Collective Bargaining
 Collective bargaining is the process of negotiation between
employee and employer on matters that affect employment to
achieve collective agreement.
 For the bargaining to take place, the following conditions must exist:
 Employees must be prepared to act collectively and recognize their common
interests.
 Management must recognize labor unions and their representatives as
legitimate bargaining agents for labor,
 Labor unions must be free to organize employee without pressure from state or
employer control.

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203 Phase 3:Contract Administration
 The last phase of labor relations is contract administration,
which involves application and enforcement of the labor
contract in the workplace.
 Disputes occasionally arise between labor and
management over such issues as who should be
promoted or whether an employee has abused sick leave
privileges.
 The steps taken to resolve such disputes are spelled out in
the labor contract.
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204 Reading Assignment:
 Read Detail About :
 the major functions a collective bargaining process perform in the organization
 Grievance Handling

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