Human resource management.

Chapter 1 : perspectives in HRM.

Meaning.
Human resource management is the strategic approach to the
effective and efficient management of people in a company or organization such
that they help their business gain a competitive advantage.
Human Resource Management as “planning, organizing, directing,
controlling of procurement, development, compensation, integration ,
maintenance and separation of human resources to the end that individual,
organizational and social objectives are achieved.”

Definition.
Armstrong (1999, p. 3) says that HRM 'is concerned with the
employment, development and reward of people in organisations and the
conduct of relationships between management and the workforce'.

Role of HR managers.
1 . Human Resource Planning
HR managers are responsible for planning and achieving organizational
objectives. They usually engage in identifying, preparing, and executing
business goals with top-level executives.

2. Job Analysis and Design

As mentioned above, human resource planning requires assigning
the right resources to the right project. And if the right person is not
in the organization, HR managers are responsible for designing the
job analysis to hire them.
In addition to this, The responsibilities of the HR manager include:
  Job rotation: Transferring employees from one task to
another depending on the requirement and their skills
 Job enlargement: Merging previously distributed (similar)
tasks into one job
 Job enrichment: Adding more responsibility to an
employee’s job
 Creating high-performance working groups: Building
teams to complete tasks that require high levels of
performance

3. Hiring Candidates
Finding and hiring the right talent is a very complex process.
Modern HR managers do more than just post job requirements in
portals to fill open positions. They develop strategic solutions to
attract the right candidates to fulfill the demands of the business.

4. Training and Development

Hiring the best candidates is just half the job. HR managers need to
train and upskill them to maximize their return on investment.
The type of training and development new employees require
depends on their experience.

5. Design Workplace Policies

It is essential for HR managers to design workplace policies to
reduce conflicts and legal issues, and improve employee
productivity.

6. Monitor Performance
Closely related to training, general HR roles and responsibilities
include examining employee performance records to identify the
scopes of improvement and arranging training workshops to upskill
them.

7. Maintaining Work Culture

HR roles & responsibilities shape and maintain organizational
culture. It is essential to create a positive impression of the
company from day one, so the new employees know what to
expect.

8. Resolve Conflict
In every organization, employees come from diverse backgrounds.
And when people with opposite opinions meet, the chances of
having a conflict rise significantly.

9. Ensure Health and Safety of Employee

Employees are the asset of the organization. Unless they are safe
and healthy, they won’t be able to give their best to the company.
Thus, HR managers need to ensure the health and safety of
employees.

10. Rewards and Incentives

Lastly, HR managers need to reward employees based on their
performance and other factors like punctuality. The biggest benefit
of rewarding workers is that it creates a desire for other employees
to excel at their job in the hope of getting incentives.

Sub - system of HRM.

Every system has subsystem which are arranged and interconnected in a
particular way. Each subsystem is identified by certain objective, processes,
roles and norms of conduct. HRM being a system, contains various subsystems
which are linked to each other.
The various subsystems are connected to each other and all subsystems are
connected to the main system viz., HRM system. Each subsystem contributes to
the main system and to the organization as a whole. If a particular sub-system
does not work properly it has negative impact over other subsystems, just like
defective part in a machine spoils other parts and renders the machine
ineffective. There should be proper balancing among different subsystems of
HRM.

Functions and policies of HRM.

 Functions of HRM:
It is an organisation deliver it’s corporate strategy and
objectives by effectively, recruiting and developing people and
managing their performance.

1. Employee hiring and selection

2. Employee training & development
3. Compensation and Benefits
4. Employee performance management
 5. Managerial relations
6. Labour relations
7. Employee engagement & communication
8. Health and safety regulations
10. Personal support for employees
11. Succession Planning
12. Industrial Relations.
13. Job design and job analysis.

1.Job design and job analysis

One of the foremost functions of HRM is job design and job analysis. Job design
involves the process of describing duties, responsibilities and operations of the job.

2. Employee hiring and selection

Recruitment is one of the primary functions of human resource management. HRM
aims to obtain and retain qualified and efficient employees to achieve the goals and
objectives of the company.

3. Employee training & development

Imparting proper training and ensuring the right development of the selected
candidates is a crucial function of HR. After all, the success of the organisation
depends on how well the employees are trained for the job and what are their
growth and development opportunities within the organisation.

4. Compensation and Benefits

Benefits and compensation form the major crux of the total cost expenditure of an
organisation. It is a must to plug the expenses, and at the same time, it is also
necessary to pay the employees well.

5. Employeee performance management

The next activity on HR functions list is effective employee performance
management. Effective performance management ensures that the output of the
employees meets the goals and objective of the organisation.
6. Managerial relations
Relationships in employment are normally divided into two parts — managerial
relations and labour relations. While labour relations is mainly about the
relationship between the workforce and the company, managerial relations deals
with the relationship between the various processes in an organisation.

7. Employee engagement and communication

Employee engagement is a crucial part of every organization. Higher levels of
engagement guarantee better productivity and greater employee satisfaction.
Efficiently managing employee engagement activities will help in improving the
employee retention rates too. HRM is the right agent who can manage the
employee engagement seamlessly.

8. Labour relations
Cordial labour relations are essential to maintain harmonious relationships between
employees at the workplace. At the workplace, many employees work together
towards a single objective.

9. Health and safety regulations

Every employer should mandatorily follow the health and safety regulations laid
out by the authorities. Our labour laws insist every employer to provide whatever
training, supplies, PPE, and essential information to ensure the safety and health of
the employees.

10. Personal support for employees

HRM assists employees when they run into personal problems which may interfere
with the workflow. Along with discharging administrative responsibilities, HR
departments also help employees in need.
Policies of HRM.

Human resource policies are the formal rules and guidelines

that put in place to hire, train, assess and reward the members.
HR policies are divided into 2 categories:

 9 Must-Have HR Policies.
 6 Trending HR Policies.

 9 Must-Have HR Policies

1. At-Will Employment Policy

This policy reiterates that both an employer and employee can
terminate the employment relationship at any time and for any reason,
providing said reason is lawful.
2. Anti-Harassment and Non-Discrimination Policy
These policies prohibit harassment and discrimination from taking
place in the workplace. These are always governed by federal, state,
and local provisions, so it is important to review the applicable laws
and account for all the appropriate protections when stipulating this
policy.

3. Sexual Harassment Policy

Especially in the modern workplace, sexual harassment is a high-
profile concern. Informing and educating employees through an up-
to-date sexual harassment policy is critical, and some regions may
even require that your organization have one in place.

4. Employment Classifications Policy

It is an HR best practice to clearly define employment classifications.
This can include full-time, part-time, exempt, or non-exempt.

5. Leave and Time-Off Benefits Policy

These policies should address your organization’s rules and
procedures regarding holidays, vacation, sick, and all other types of
time off benefits. It should also cover leave required by law, such as
voting leave, family leave, and domestic violence leave.

6. Meal and Break Periods Policy

A clear policy on meal and break periods ensures employees are well-
informed on the frequency and duration of said breaks, as well as any
additional rules or restrictions relating to them.

7. Timekeeping and Pay Policy

A timekeeping policy keeps employees informed of the appropriate
method for recording their time worked, as well as the importance of
accurately recording their time.

8. Safety and Health Policy

These policies describe the safety and emergency procedures of the
workplace and require employees to report any work-related injuries
immediately.
9. Employee Conduct, Attendance, and Punctuality
Policy
Attendance policies clearly communicate when employees must be
ready to work, stipulating their scheduled start time each day and
providing procedures for informing their supervisors of unscheduled
absences or late arrivals.

 6 Trending HR Policies
1. Weapons in the Workplace Policy (or Zero
Tolerance for Workplace Violence)
Employers have an obligation to protect employees from all forms of
workplace violence, including physical violence, harassment,
intimidation, and even disruption.

2. Remote Workers Policy

Many modern workplaces are allowing more and more of their
employees to work remotely from home, or some other location
outside the main office. However, not all jobs and employees are
well-suited for remote work, so it is important to clarify your
organization’s position on remote work itself.

3. Bring Your Own Device (BYOD) Policy

As more employees begin to use their own devices for business,
including phones, laptops, and tablets, privacy and security matters
need to be taken into consideration.
4. Social Media Policy
A social media policy can be what protects your company’s
reputation, both online and beyond. Despite its relatively modern
nature, you should still draft this policy to withstand scrutiny from
your regional labour relations board.

5. Drug and Alcohol Policy

Due to the expanding laws legalizing marijuana use, drug and alcohol
policies are becoming more and more relevant to the modern
workplace. Aim to keep in mind any regional laws relating to specific
substances when drafting this policy.

6. Updated Confidentiality Policy

Broader policies that require employees to keep all information
confidential are no longer effective. Due to the changing nature of
how information gets shared, it is important to be specific in your
confidentiality policies, excluding any items that labour may not
deem private, such as wages and working conditions.

Organisation for HRM.

Organisation is the process of identifying and grouping the work
to be performed, defining and delegating the authority and
responsibility and establishing the relationships for the purpose of
enabling the people to work most effectively.

Organisational objectives:
HRM achieve the organizational objectives like to earn profit, growth,
expansion, survival, diversification etc. via the HR functions namely planning,
recruiting, selecting, placement, induct, train and develop the human resources and
to arrange for performance appraisal of the employees.

Development of HRM in India.

HRM has started focusing more on development aspects of human
resources. HRM emphasis on a harmonious balance between
employee demands & organizational requirements. Development of
HRM in India has now occupied a centre stage and its growing at
an apt pace with the industry.

 The role of HR is very dynamic in the present Indian scenario.

The role has evolved from earlier supporting role of managing
payrolls and manpower to a strategic partner in the growth of
the business. It’s now an integral part of the corporate and now
innovative HR practices have also been USP of many
 companies. Presently HR does the following role in the Indian
context –

1. Investing in Talent (i.e., employee experience, Happiness at work

& employee wellness).

2. Bracing for Diversity

3. Greater Emphasis on Employee Development.

4. Use of Technology in HR.

5. Motivating the Workforce

6. Managing People

7. Competency Development

8. Trust Factor

9. Work-life Balance

10. Bridging the demand-supply gap.

Recent trends in HRM.

The uncertainties in 2020 brought a rapid shift in the working model.

The experts are now predicting that COVID-19 will permanently change the
way people work. Helping employees stay healthy, engaged and productive
will be amongst the top priorities for every HR professional.
  Remote Working is Here to Stay.

With the onset of COVID-19, work-from-home has become the ‘new

normal’. The coronavirus crisis has forced employers to switch to
a remote working model to keep employees safe while ensuring
business continuity.
Evidence suggests that remote work has been a boon to many due to
its advantages like flexible working hours, saving time and cost on
commuting etc.

 Reinventing the Employee Experience.

Much prior to the pandemic, employers have been paying
attention to employee experience.

But COVID 19 has forced HR teams to redesign employees’ journeys

while measuring the virtual employee experience – right from hiring
the employee to their exit.

 Online Training and Upskilling

Job uncertainty in 2020 has made it necessary for people to learn

additional skills. Companies too are planning to upskill their
workforce with the right training and knowledge needed to meet the
challenging job requirements.

 Employee Wellbeing and Mental Health

Physical health is very important, but now it’s time to ensure mental
well being of employees as well. And undoubtedly, HR has a unique
role to play in this. Employee well being is going to be one of the top
HR trends in 2021.

 Cloud-based HR Systems

Since COVID-19 crisis started, companies have made huge

investments in HR technology, with a focus on cloud-based HR
systems that can be easily accessed anytime, from anywhere, with
complete privacy of data.

 People Analytics
The data driven method of studying people and processes will
continue to reign in 2021.

 Virtual Onboarding

Attracting and hiring top talent has always been a priority for
HR. In 2021, the goal remains the same – attract, hire and
onboard the top talent in the most efficient way.

 Artificial Intelligence (AI) in HR

AI has transformed our lives at home and at work and has become an
essential part of the technology industry. Multiple HR practices have
benefited by integration of Artificial Intelligence in HR technology,
right from recruitment to engagement to employee development.

Impact of globalization on HRM

 When a business expands its operation into other countries, the impact
of globalization on human resource development and management is
significant.

 Companies need to consider a diverse range of practical adjustments to

be able to hire, train, retain and support a workforce that's often spread
throughout several countries, which often have varying cultural
identities.

 Human Resources departments must adapt their thinking and practices

to include cultural differences, foreign regulations and technological
developments.

1.Theoretical framework
  Cultural perspective.

 Institutional perspective.

 Universal perspective.

 Contingency perspective.

2. Managing cultural diversity.

 Parent country national (PCN)

 Host country national (HCN)

 Third country national (TCN)

3. Managing exparties.
4. Differences in the employment laws.
5. Managing virtual employees.
6. Rise in employee expectation.
7. Impact on human resource development.
8. Reportaisation.

🌸🌸🌸
Unit 2 : HR planning, Recruitment and
selection.
Definition of HR planning
According to y.c moushell “ human resource planning is a
strategy for the acquisition , utilisation improvement and
preservation of an organisation's human resource”.

Meaning of HR planning.
Human resource planning is a process that identifies current and
future human resources needs for an organization to achieve its goals.
Human resource planning should serve as a link between human
resource management and the overall strategic plan of an
organization.

Scope of HR planning.
 Human resource planning is used by organisations to ensure that they have
the right number and the right kind of people at the right place and at the
right time.
 Where this process is carried out properly, it brings maximum long-run
benefits to both the organisation and the individual employee.
 Human Resource Planning is the planning of Human Resources. It is also
called manpower planning/ personnel planning/ employment planning.
 It keeps the record of current manpower with the organization.
 Assessing the future requirements of manpower for organization objectives.
 To make the manpower recruitment plans.
 To phase out the surplus employees.
 To make a layout of training programme for different categories of
employees.
Factors affecting HR planning.

Process of HR planning.

Job analysis.
Job analysis is a strategic and detailed analysis of job to
know the nature and characteristics of people to be employed
for each job.

It is a process of gathering information of the job . It is

a systematic investigation of task, duties and responsibilities.

Definition.
According to Edwib B flippo Job analysis is the process of
studying and collecting information related to the operations
and responsibilities of a specific job.

Importance of job analysis.

Process of job analysis.
Components of job analysis.
They are two types of job analysis:
 Job description.
 Job specification.

Job description.
Job description is the most common end product of job analysis. A
job description is a written statement of what the job incumbent does,
how it is done, under what conditions it is done and why it is done.
Components of Job Description are:
1. Job Identification
2. Job Summary
3. Job Duties
4. Supervision Required
5. Relation to Other Jobs
6. Machine or Equipment Required
7. Working Condition

8. Social Environment

Job Specification.
The human characteristics required to perform the job
satisfactorily are termed as job specifications. It indicates the
eligibility criteria which means the qualification, abilities,
skills and intelligence, education and expertise required to
perform the job.
Elements of Job Specification:
1. Educational Requirement
2. Experience
3. Specific Knowledge Requirement
4. Skill Requirement
5. Personality Requirement
o Essential Attributes

o Desirable Attributes

o Contra-Indicator

Purpose of job analysis.

Job design.
Job design is the process of establishing employees' roles
and responsibilities and the systems and procedures that
they should use or follow. The main purpose of job design,
or redesign, is to coordinate and optimise work processes to
create value and maximise performance.

Definition.
According to Ali and Arooriya 2012 is “job
design can be understand as the functions of
arranging duties, tasks and responsibilities to an
organisation unit or work.

Importance of job design.

Methods of job design.

  Job Rotation.

 Job simplification.

 Job enrichment.

 Job enlargement.

Job evaluation.
Job evaluation is the systematic process of determining the relative
value of different jobs in an organization.

The goal of job evaluation is to compare jobs with each other in order
to create a pay structure that is fair, equitable, and consistent for
everyone.

Importance of job evaluation.

Objectives of Job Evaluation

 Wage and Salary Fixation:

 Restructuring Job Hierarchy

 Overcoming Anomalies

Features of job evaluation.

 It attempts to assess jobs, not people.
 Job Evaluation is the output provided by job
Analysis.
 It provides bases for wage negotiation founded on
facts.
 Job Evaluation does not design wage structure, it
helps in rationalizing the system by reducing
number of separate and different rates.
 Job Evaluation is done by group of experts.
 Job Evaluation determines the value of job and the
value of each of the aspects of job such as skill and
responsibility levels are also related and studied in
connection with the job.
 Job Evaluation helps the management to maintain
high levels of employee productivity and employee
satisfaction

Recruitment
 Recruitment is the process of finding, screening, hiring and
eventually onboarding qualified job candidates.

Recruitment is the process of finding, screening, hiring

and eventually onboarding qualified job candidates.
Recruitment is a key part of human resource (HR)
management and supported by the hiring manager and
others involved in the hiring process.

Definition of recruitment.
According to Edwin B Flippo “ recruitment is
the process of searching the candidates for
employment and stimulating them to apply for
the jobs in the Organisation.
Methods of recruitment.

 Direct advertising
Placing job adverts on your careers site, job boards, social media and
industry publications is an excellent way to find lots of applicants. It
also gives exposure to your employer branding and boosts your
company’s reputation.

 Talent pool databases

You should always search your talent pool databases for applicants
and candidates that were not hired but were suitable enough to save.
Most hiring decisions involve deciding between at least two or three
candidates.

 Employee referrals
Most companies have some kind of employee referral program in
place. Employee referrals is a combination of internal and external
recruitment. Existing staff are encouraged to refer people they know
for vacancies.

 Boomerang employees
Rehiring past employees is gaining popularity. Known as boomerang
employees, these are people who worked well at a company but then
left on good terms for a myriad of reasons.

 Promotions and transfers

Promotions and transfers aren’t quite the same thing, but the concept
is the same. Internal employees are identified to fill open roles. A
promotion means that the person moves up the ladder and is given
more responsibilities and also a pay increase.

 Employment exchanges
Although not available in all countries, employment exchanges are
mandatory in others. An employment exchange is a government-run
initiative that keeps record of unemployed job seekers.

 Recruitment agencies
You can outsource your hiring process to a recruitment agency.
Agencies manage full cycle recruiting on your behalf. Although the
cost of using an agency is high, it frees up your time to focus on more
pressing matters.

 Professional organizations
When you need to fill a highly skilled position, professional
organizations can be an excellent source of candidates. Many
professions require that on qualification, people register with the
appropriate professional association.
  Internships and apprenticeships
Offering internships and apprenticeships is an excellent way to get to
know the strengths of individuals and can be considered to be a
working interview. During the contact period, line and hiring
managers can evaluate the potential to identify interns and apprentices
who can be upskilled and developed to fill future roles.

 Recruitment events
For big organizations, or companies planning expansion, recruitment
events are perfect for attracting the type of people you need.

 Word of mouth
Big brands and multinationals can easily use word of mouth methods
of recruitment because unsolicited job seekers approach them daily.
Their employer brand is established, and they’re recognized as an
employer of choice.

 Bulletin boards
There are still jobs that can be advertised on bulletin boards. Factory
and agricultural jobs are typical examples. Unemployed people often
wait at factory gates for day or contact jobs to be announced.
Testing for Selection of employees.
psychological test.
Psychological Testing is mainly used for psychological
diagnosis, screening job candidates, academic placements,
identifying certain behaviour, research purposes, etc.

Uses of psychological test.

Selection.
Selection is the process of identifying an individual from a pool of
job applicants with the requisite qualifications and competencies
to fill jobs in the organization. This is an HR process that helps
differentiate between qualified and unqualified applicants by applying
various techniques.

Selection process.
The selection process can be defined as the process of selection and
shortlisting of the right candidates with the necessary
qualifications and skill set to fill the vacancies in an organisation.
The selection process varies from industry to industry, company to
company and even amongst departments of the same company.

Selection process steps.

selection procedure involves a series of steps to be followed for
choosing the suitable person for the vacant job. This process starts
after recruitment and divides the candidates in two parts those who
will be offered job and those will not be. There is a need of well-
organized selection process because only then right type of candidate
can be selected and unsuitable candidates are rejected.
1. Preliminary interview: the selection process generally starts with this step where
the totally unsuitable applicant is eliminated. Thus the organization is saved from
the expenses of processing the applicant through the remaining steps of selection.

2. Receiving applications: after passing the preliminary interview the candidate is

asked to fill the standard application form. The application form generally consists the
information about the age, qualification, experience etc.

3. Screening of applications: after receiving the applications the screening committee

screens the applications. Only the candidates who qualify the criteria of the screening
committee are called for the interview.

4. Employment test: after getting the interview letter and before going to the interview
there is one more step and that is the employment tests. These tests are done to check
the ability of the candidate. These tests vary from organization to organization and
change as per the need of the particular job.

5. Employmet interview: the candidates who qualify the above tests are called for the
employment interview. This interview is done to get more information about the
 candidate, to give him the actual picture of what is required from him, to check the
communication skill of the candidate etc.

6. Checking references: before selecting the employ the prospective employee

generally look out for the referees given by the candidate. To check about the
candidate’s past record, reputation, police record etc.

7. Physical examination: The organizations generally prefer medical examination to be

incurred of the person to avoid time and expenditure spend on the medically unfit
person. Sometimes the organization may ask the candidate to get them examined
from the medical expert.

8. Final selection: after all these steps the candidate is selected finally. He is appointed
by issuing appointment letter. Initially he is appointed on probation basis after
finding his work satisfactory he is appointed as permanent employee of the
organization or otherwise he may be terminated.

Interviews.

an interview consisting of a conversation between a job

applicant and a representative of an employer which is
conducted to assess whether the applicant should be hired.
 Interviews are one of the most popularly used devices for
employee selection.

Types of interviews.

1. Face to face interview.

Face-to-face interviews are structured interviews conducted by
trained interviewers who use a standardized interview protocol
and a standardized set of responses for recording participants'
responses.

2. Panel interview.
Panel interview refers to a type of interview which
includes one applicant and several interviewers, often representatives
of different departments within a company like the hiring manager
and a member of the human resource recruitment team.

3. Behavioural interview.
Behavioral interviewing is a job interviewing technique where
candidates are asked to describe past performance and behavior
to determine whether they are suitable for a position. Behavioral-
based interviewing provides a more objective set of facts to make
employment decisions compared to other interviewing methods.

4. Stress interview.

A stress interview is a path used to put applicants under

immense tension. They are intended to test your capacity to think
directly on your feet, react proficiently in troublesome circumstances
and remain quiet in a pressurized domain.

5. Group interview.

A group interview is an interview technique in which

several candidates are interviewed simultaneously for similar
positions. To be successful, group interviews must be well planned
and executed. The plan also needs to outline the company
objectives and purpose for using a group interview strategy.

6. Telephonic interview.

Telephone interviews are used by companies to screen candidates

and narrow the pool of ap- plicants who will be invited for in-
person interviews. They minimize expenses associated with
interviewing out-of-town candidates and help employers quickly and
efficiently target candidates who fit their needs.

7. Meal time interview.

In this type of interview, an interviewer takes you out for dinner

to a restaurant where you discuss the position and your
qualifications over a meal. Interviews may take job candidates
 out for dinner to assess their social skills, communication skills and
their overall demeanor.

8. Video interview.

A video interview is a job interview that takes place remotely and uses
video technology as the communication medium. Video interviews are
a popular tool for talent acquisition because they can save an organization
time and money compared to traditional, in-person or face-to-face
interviews.

9. HR interview.

An HR interview is conducted to judge your personality, your

strengths, your weaknesses, your capability to handle the role,
to check your background, and to understand if you're the
right fit for this job.

Errors in selection.

 There are two types of selection error.

 In the "false positive error," a decision is made to hire an applicant based
on predicted success, but failure results.
 In the "false negative error," an applicant who would have succeeded is
rejected based on predictions of failure.
 Some other errors in selection process.
 Not creating an accurate job description.
 Failing to consider recruiting from within.
 Relying too much on the interview.
 Using unconscious bias.
 Hiring people less qualified than you.
 Rejecting an overqualified candidate.
 Waiting for the perfect candidate.
 Rushing the hire.
 Relying Too Much on References
 Expecting Too Much, Too Soon From a New Recruit.

🌺🌺🌺
Unit : 3 : Training and development.
Introduction.
 Training and Development is one of the most important functions
of Human Resource management in any of the organization.

 The objective of this Training is to enhance employees’ skills behavior

and expertise by putting them into learning new techniques of doing
work.
 Employee Training and Development helps in updating employees’ skills
and knowledge for performing a Job which at the end results in increasing
their work efficiency and increase the productivity of an organization.
 It ensures that Employees oddness or eccentricity is reduced and learning
or behavioral change should take place in a very structured format.
 Training development or learning and development are official ongoing
educational activities designed for goal fulfillment and enhance the
performance of employees.

Meaning.
Training and development refers to educational activities within a
company created to enhance the knowledge and skills of employees while
providing information and instruction on how to better perform specific
tasks.

Methods of training.
On the job training methods
This type of training also known as job instruction training this is most commonly used as a
method. Under this method, the individual is placed on a regular job & taught the skills
necessary to perform the job.

Following are the job training methods.

1. Job Rotation

It involves the movement of the trainee from one job to another. The trainee receives job
knowledge & gains experience from his supervisor or trainer. This type of training gives an
opportunity to the trainee to understand the problem of employees on other jobs & respect
them.

2.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 his performance & offers him
some suggestions for improvement.

3.Job Instruction
This method is also known as step by step training. Under this method, the trainer explains to
the trainee the way of doing the jobs, knowledge & skill and allows him to do the job. The
trainer appraises the performance, provides information & corrects the trainees.

4. Committee Assignment

Under this method, a group of trainees is given and asked to solve an actual organization
problem. The trainees solve the problem jointly and develop teamwork.

Off the Job Methods

Under this method of training, the trainee is separated from the job situation and his attention
is focused on learning the material related to his future job performance.

1.Vestibule training

In this method, actual work conditions are simulated in a classroom. Material files and
needed equipment are also used in training. This type is used for training personnel for
clerical and semi-skilled jobs.

2 Role-Playing

It is defined as a method of human interaction that involves realistic behavior in an imaginary

situation. This method of training involves action doing the practice. This method is mostly
used for developing inter-personal interaction and relations.

3. Lecture Method

The lecture is a traditional & direct method of instruction. The instructor organizes the
material & gives it to a group of trainees in the form of a talk. This is beneficial to train a
large group of trainees.

4. Conference.

It is a method for clerical, professional & supervisory personnel. This involves a group of
people who put forth ideas, examine & share facts, ideas assumptions & draw a
conclusion..the success of this method depends on the leadership qualities of the person who
leads the group.

5.Programmed Instructions.
In recent years this method has become popular the subject matter to be learned is presented
in a series of carefully planned sequential .this method is expensive & time-consuming.

Training manual.

A training manual is a set of instructions that improve the quality

with which a job, process, or task is performed. Companies use
training manuals with in-person, remote, on-demand, and just in time
training. A few common applications include: Onboarding new
employees.

Purpose of training manual.

 While the packaging of the traditional training manual has changed,
its noble purpose remains consistent.

 A training manual is a set of instructions that improve the quality

with which a job, process, or task is performed.

 Companies use training manuals with in-person, remote, on-demand,

and just in time training. A few common applications include:

 Onboarding new employees

 Rolling out new software and systems
 New protocol or process documentation
 Sharing standard operating procedurs
 Customer training and education
 Product instructions and information

Steps in training manual.

Step 1: Define your audience

Step 2: Plan your content
 Step 3: Determine content presentation
format
Step 4: Develop your content
Step 5: Assemble and deliver your manual
Step6: Track feedback and keep your
content updated

Training under ISO and QS certification.

ISO 9001 Certification for the HR Department provides the framework
for effective processes and competent people to deliver an effective
product or service.

ISO training allows organizations to streamline and optimize their in-

house training processes. It promotes any organization to: Identify the
proper training needs. Effectively train employees on ongoing processes.
Track and manage employees training growth.

Importance of ISO
 International Organization for Standardization (ISO)
certification establishes credibility and trust within
consumers, stakeholders and other business partners.
 ISO certification guarantees the entity meets global standards
for business, especially in trade situations.

Some of the main benefits of ISO 9001 certification

include:

 Suitable for both small and large organisations

  Better internal management
 Less wastage
 Increase in efficiency, productivity and profit
 Improved customer retention and acquisition
 Consistent outcomes, measured and monitored
 Globally recognised standard
 Compatible with other ISO standards
 Accreditation by UKAS
SUPERVISORY:
HR supervisors form part of the company's management team. They
take charge of all human resource programs and various employee-
related matters. Depending on the type of organization and its size,
HR supervisors will have different responsibilities, but they generally
ensure the company's standards are maintained during all processes.

HR Supervisor Responsibilities:
 Conducting interviews, recruiting, and vetting new staff.
 Arranging training sessions with all new hires and refresher
workshops for existing employees.
 Assisting managers with staff requirements.
 Identifying and addressing employee requirements regarding
performance issues, training, and career growth.
 Performing various administrative tasks and accurately
processing paperwork.
 Counseling staff on HR policies, practices, and procedures.

HR Supervisor Requirements:
 Bachelor's degree in HR or similar (preferably a master's
degree).
  Relevant experience in an HR role.
 Strong leadership skills and the ability to work unsupervised.
 Excellent written and verbal communication skills.
 Strong moral and ethical code.
 Competency in Microsoft Office, and business management
and presentation tools.
 Excellent administrative skills.

EXECUTIVE:
MEANING:

Executive development is a process of bringing change

in behaviour, performance and adaptability. It helps
in gaining skills, knowledge, and growth to become a
better leader.

The purpose of executive development in hrm is to

develop an attitude of adaptability to new and tough
situations. So, it will improve their decision and problem-
solving skills.

Executive Development in HRM has become an important part

of organization growth. The need for executive development is
different for everyone. So, we are gonna discuss how the need
for executive development in hrm is different for organization
and person.

It is important to identify the need prior for both organization

and employees.

Before going to the process of executive development

organization make sure that they know the requirement of what
kind, how many executives and managers are required now and
in future.

MANAGEMENT DEVELOPMENT
PROGRAMMERS:
Management Development Programme is deliberately designed and
organized to reflect the most significant needs of industry. The
programme concentrates on modern developments and recent trends
in managerial practices in a particular area.

Management Development – Meaning and Objectives

Management Development means development of people in
managerial cadre, so that they can excel in their present
performance and future performance as well. So, it is a process to
improve knowledge, skill, abilities and attitudes of managers/
executives for better performance of the job.

OBJECTIVES:

1. Identifying potential executives and developing them

2. Enhancing knowledge, skill, ability for performance of
present job
3. To create a dynamic management pool
4. To increase proacting capabilities of managers
5. To develop conceptual skill of higher executives
6. To improve human relations skill of managers
7. To prepare managers to act as change agents
8. To keep the organizational activities running through
provision of replacement
9. To identify individual learning needs and to meet them
10. To keep the morale level of executives high

Career Development:
Career Development is defined as the efforts that are made by
the organization to equip its employees with the skills,
knowledge and experience. Actually that help them to perform
the duties of their current as well as future jobs effectively. The
organization develops and implements certain policies including
counseling the employees, promotion and opportunities.
Specifically to attain excellence that facilitate the employee to
prepare their career.

Development of career actually promotes the knowledge, skills,

and experiences along with the behavior modification. Along
with the techniques of refinement that promotes the addition of
value for the employees by improving their work.

Career development is looked as essential by the organizations

due to the following reasons.

 It is a method of prevention from job burnout

 The career information is provided to the employees
 The quality of work life is improved
 Also the affirmative action goals are met

Step by Step Career Development Process

 Self-Assessment – Career Development Process

 Exploring the Options
 Making a Decision – Career Development Process
 Taking Action – Career Development Process
 Evaluation of the Decisions

Unit-4:PERFORMANCE MANAGEMENT
KPA:
Key performance areas (KPAs) are the few factors that greatly influence a
business’ success. The number of KPAs depends on the company and the
industry. One of the difficult tasks of the board is to identify (with the
manager’s assistance) those areas in which performance vitally affects the
success or failure of the firm.
KRA:
Key Result Area (KRA) The key result areas or KRAs is a concept on
which the individual performance is measured and these are the
activities which have an impact on the bottom line of the business. In
generaly it is very difficult to measure.

What is the difference between KPAs and KPIs?

Based upon an agreed measurement, Key Process Indicators (KPIs)
are used for each Key Process Area (KPA) to determine where the
organization ranks. Mostly, an aggregation of all the KPIs for a
particular KPA determines the final KPA measurement and status.

DIFFERENCE BETWEEN TRADITIONAL AND MODERN

METHODS OF PERFORMANCE MANAGEMENT:
The key difference between the traditional methods and the modern
methods of performance appraisal is that traditional methods of
appraisal are more work-oriented or goal-oriented and does not
pay attention to employee’s other strengths, whereas the modern
method of performance appraisal focuses on employee’s personality
traits like creativity or leadership skills etc.
POTENTIAL APPRAISAL:
The potential appraisal is a future-oriented appraisal to
measure the potentiality of an employee for future higher
positions. The potential appraisal refers to the identification of
hidden talents and skills of a person. The person might or
might not be aware of them. To express it in simple words,
performance appraisal is an estimation of how an employee did
while potential appraisal is an estimation of how well he might
do.
Potential appraisal is an assessment / appraisal of a person’s
capability to perform job with higher responsibilities. In other
words, ascertainment of a person’s latent / inherent capacity to
handle higher job is potential appraisal.
So, level of competency, capability of a person to perform
higher cadre / grade job is measured through potential
appraisal system.
Every company needs officers/executives in different grades/
cadres for its effective functioning in a desired manner. So,
when vacancies arise due to superannuation, resignation,
dismissal, discharge of employees, diversification expansion of
business process reengineering initiation etc.

Indicators of Potential:
i. Sense of reality
ii. Imagination
iii. Power of analysis
iv. Breadth of vision
v. Persuasiveness
Objectives of potential appraisal:
1. Identification of Employees Having Capabilities to
Perform Higher Level Jobs
2. Assessment of General Potential
3. Identification of Training Needs of Employees
4. Implementing Succession Planning Activities
5. Assisting Employees in Personal Development
Process
6. Helping Organization to Decide its Strategy
7. Helping Organization to Survive, Grow and Develop
Feedback Systems:
Feedback is way of assessment of work done or processes and is an
integral part of the HR department. Feedback is a way to understand
the needs, requirements, performances etc of employees in an
organization.
What is Feedback?
Feedback is way of assessment of work done or processes and is an
integral part of the HR department. Feedback is a way to understand the
needs, requirements, performances etc of employees in an organization.
A continuous feedback helps companies evolve as they are better
prepared for improvements required based on the answers received.

Importance of Feedback in Management

An organization is a complex network of employees working in various
departments, domains and profiles. Each employee has a different role,
responsibility and decision making capacity. However, all work towards
to objectives and goals set by the company. Hence, constant monitoring
of the work being done is important for the business. This is where
feedback is an important aspect in understanding the work done by an
employee in an organization. This mechanism set up in companies are
often referred as organizational feedback. It is an important aspect for
good business and a pivotal role is to be player by the HR department.
UNIT-5:COMPANSATION PLANNING:
WAGES AND SALARY:

Everything you need to know about the wage and salary

administration. ‘Wage and Salary Administration’ refers to the
establishment and implementation of sound policies and practices
of employee compensation.
It includes such areas as job evaluation, surveys of wage and
salaries, analysis of relevant organisational problems,
development and maintenance of wage structure, establishing
rules for administering wages, wage payments incentives, benefits
including health insurance, profit sharing, wage changes and
adjustments, supplementary payments, control of compensation
costs and other related items.

The wage and salary administration is difficult and important task

before the management, these are probably the most vital factors in
deciding the conditions of the employment Wages and salaries are
not merely important determination of standard of living and the
per capita income of the workers, but master key to achieve higher
productivity and higher morale.

Definitions of Wage:
The wage is the remuneration paid by the employers to his employ-
ees. According to laissez faire policy, wage is the price paid to the
worker for the services he has sold to the employer. If could be the
contract income settled, between the employers and the employees
But the commodity theory of labour is no more in reactive and so
wage cannot be treated as mere price for the service paid to the
employer.

elements of wage and salary system:

(a) Measuring the actual performance.
(b) Comparing the performance with the salary received.
(c) Finding out the dissatisfaction arising from unfulfilled needs and
unattained goals.
(d) Evaluating the unsatisfied wants and unreached goals of the
employees.
(e) Adjusting the salary levels accordingly with a view to enable the
employees to reach unreached goals and fulfil the unfulfilled needs.
(f) Determining the effort necessary to achieve standards.
(g) Identifying the available salary opportunities, their costs,
estimating the worth of its members of these salary opportunities
and then communicating them to employees.
(h) Relating salary to needs and goals.
(i) Developing quality, quantity and time standard relating to work
and goals.

IMPORTANT PRINCIPLES:

 Protection of Interests
 Uniform and Consistent
 Consistency in Planning
 Flexible and Adaptable
 Employee Participation
 Close Scrutiny
 Simple and Quick Expeditious
 Simple Organisational Set-Up
 Periodical Review and Revision

ADMINISTRATION PERKS:

Employee perks are additions to employee compensation — which includes salary and
benefits. Perks are not required by law or considered basic necessities. They typically help
define and reinforce a company’s overall culture and are considered important parts of
enhancing the employee experience.

Employee perks are additions to employee compensation — which includes salary and
benefits. Perks are not required by law or considered basic necessities. They typically help
define and reinforce a company’s overall culture and are considered important parts of
enhancing the employee experience.

IMPORTANT PERKS:

1. Remote work: Emphasize productivity over presence in a certain

physical space and embrace the benefits of remote work. Not all
work can be done remotely, and not all workers want to work
remotely. But by allowing for flexibility, you can keep employees
happy, reduce office costs and a focus on productivity can boost your
bottom line.
2. Flexible schedules: More than half of workers say they would leave
their job for one that offers flexible work time. Flexible work can be
remote work, but it also can be core hours in the office, flextime, job
shares and more. Flexible schedules cut down commuting time and
help employees connect more with families. One successful example
of embracing flexibility were so-called “silent meetings” at data and
records management company Iron Mountain. Teams actively
collaborate on a cloud-based document at the same time, discussing
and looking at the notes in unprompted and unscripted conversation.
It’s proven a productive alternative to listening to speakers and
looking at a slide deck.
3. Gym or fitness reimbursement: One of the most popular perks for
employees are gym memberships and other healthy lifestyle
incentives. Employees at Reebok, for instance, can take a CrossFit
class or use the on-site company gym during the workday. Many
organizations have adopted apps and services to gamify fitness with
contests and challenges to compete for prizes.
4. Parental leave: Some leave is required for companies with more
than 50 employees through the Family and Medical Leave Act
(FMLA). But that leave does not have to be paid under FMLA.
Consider providing paid maternity and paternity leave. And make the
policy inclusive for adopted children, as well. Spotify offers 6 months
of paid leave to all employees, including for families adopting
children.

5. Childcare or tutoring services: Although not as common as some

perks, this is growing in popularity. For example, consulting company
Accenture launched a program adopted by Microsoft, Bank of
 America and others to subsidize tutoring at Mathnasium, Sylvan
Learning and Code Ninjas.

Some organizations also provide on-site daycare services or partner

with other companies for free or reduced-price services.

6. Elder care: For many people, understanding how to navigate the

care options for elderly family members is a major concern. And
some companies are launching programs to help employees
maneuver a complex health care system. For instance, law firms
McDermott Will & Emery and Greensfelder, Hemker & Gale recently
added elder care benefits with access to care guides who help coach
employees on caring for and finding services for aging loved ones.

7. Financial advice: Give employees the tools to make sound financial

decisions. Consider credit counseling services, general investment
advice and retirement-specific investment guidance options.

8. Meal allowances or free food: Free coffee in the breakroom, team-

building lunches and snacks at the ready are just some of the perks
to consider. While probably not a major factor in retaining employees,
it can be a small service that will help employees feel more welcome
in the office and free food can be a sign of gratitude.
9. Online learning: If you want to keep employees around, help them
grow. Some 94% of people in a LinkedIn survey said they would stay
at a company longer if that company helped them learn and grow
professionally. Walgreens University offers hundreds of trainings,
leadership development and career advancement programs online
and at regional campuses, as well as its own learning center in
Illinois — with many of the programs offering the opportunity to gain
college credit.
10. Cell phone reimbursement: When a cell phone is used for
work some reimbursement is required by law in certain states, like
California. And it’s fast becoming an expected standard in
workplaces. Reimbursing for a “bring-your-own-device” policy can
save your company from having to purchase all new equipment.
11. Charitable matching: In multiple surveys of job seekers,
applicants have shared the importance of working for a company that
supports charitable causes and gives back to the community. One of
 the most popular ways for organizations to do this is through
matching employee gifts up to a pre-determined dollar amount.
12. Educational assistance/loan reimbursement: In a survey of
22,000 recipients of tuition assistance, 84% said the perk was an
important factor in their decision to join a company. The IRS allows
tax deductions for tuition reimbursement up to $5,250 annually —
and some companies reimburse more. For example, Starbucks pays
100% of tuition for those earning a bachelor’s degree for the first time
at Arizona State University.
13. Continuing education, upskilling and reskilling: Upskilling
programs have a twofold purpose — to provide the company with
skills necessary to carry out its business objectives while more
deeply engaging employees in their work and retaining them.
Upskilling has become an important strategy for organizations to both
attract diverse talent and ensure inclusiveness. For instance, at
AT&T, a program to upskill 100,000 employees offers educational
opportunities with online learning platforms and local universities. but
the program also offers a Career Intelligence portal where employees
can see job options, skills required and potential salaries, as well as
the projected growth of those roles.
14. Discounts: Many retail and food service businesses offer
generous discounts on their items. Whole Foods offers a 20%
discount, Gap 50% and Barnes and Noble 30%. But discounts don’t
have to be limited to retail and food service industries.

Fringe Benefits:
Fringe benefits are the additional benefits offered to an employee,
above the stated salary for the performance of a specific service. Some
fringe benefits such as social security and health insurance are required
by law, while others are voluntarily provided by the employer.

Examples of optional fringe benefits include free breakfast and lunch,

gym membership, employee stock options, transportation benefits,
retirement planning services, childcare, education assistance, etc.

Types of Benefits
Fringe benefits can be categorized into two categories. Some benefits
are required by law and others are provided at the employer’s
discretion.

1. Fringe benefits required by law

The mandatory fringe benefits are intended to provide employees with

medical care, mitigate them from economic hardships in the event they
lose employment, and provide them with retirement income to sustain
them during retirement. The following are some of the mandatory
fringe benefits that employers are required to provide:

Health insurance This fringe benefit is contained in the Patient

Protection and Affordable Care Act. It requires businesses that employ
more than 50 people to provide healthcare plans, and employees are
required to have health insurance coverage. The health care plans
cover visits to primary care physicians, specialist doctors, and
emergency care.

Unemployment insurance

The Federal Unemployment Tax Act (FUTA) requires employers to pay a

federal and state unemployment tax to the Department of Labor, which
provides wages, training, and career guidance to employees who
become unemployed due to no fault of their own. Such benefits are
meant to provide brief monetary assistance to unemployed citizens
who meet the requirements of the act.

Medical leave

Businesses that employ over 50 employees are required by law to

provide family and medical leave to an employee who has worked for
over one year in the company. The medical leave is unpaid, protected,
and can last up to 12 weeks.

Worker’s compensation

The worker’s compensation benefit is administered by the Department of

Labor to federal workers who are injured at their workstation or acquire
an occupational disease. Employees are provided with medical
treatment, wage replacement benefits, rehabilitation, and other
benefits. The compensation requirements vary by state, and injured
employees should contact their state worker’s compensation board.

2. Fringe benefits not required by law

The following benefits are provided at the employer’s discretion. On the

side of the employer, most of these benefits are taxable, but with
certain exceptions. Examples of these fringe benefits include:

 Stock options
 Disability insurance
 Paid holidays
 Education reduction
 Retirement planning services
 Life insurance
 Paid time off
 Commuter benefits
 Achievement awards
 Fitness training
 Employee discounts
 Meal plans

Bonus:
Bonus is the extra payment or financial component which is received as
a reward for doing one’s job well. Bonus usually comes along with salary of
the employee. It is the gesture of appreciation from the organization towards
their employees. Bonus is given globally in most of the organization across
different nations. It is not only given for the job well done but also to keep
the employees motivated and focused. This is either given during the
festivals as well such as Diwali, Christmas, etc or is part of the salary
structure of the employee.
Types of Bonus Components
The various types of additional incentives which can be paid to an employee are:
1. Performance Bonus
This kind is given to employees based on their performance in a given period e.g.
year or quarter
2. Festival Bonus
This type is linked to some occasion or festival in the local location of operations of
the company e.g. New Year
3. Referral Bonus
Many companies have a referral program where in employees refer other candidates
to the company. If a company has a referral program, then on a successful referral
the existing employee can be given an incentive.

4. Joining Bonus
When a new employee joins a company, he or she can be offered a one time joining
amount.
This is a bonus which is given at a very early stage of employee's career path in a
company as compared to other types of bonus.
5. Retention Bonus
This is given as a one time payment to retain the employee in the organization.
6. Miscellaneous Bonus
This can be given on some special event e.g. on 25th anniversary of the
company, every employee gets a smartphone. The above list consists of
the common bonus types we have in various companies. There can be
very specific bonuses which a company gives to their employees as well.
Incentives:

It is a reward or encouragement or inducement to an employee for

the hard work and efficiency at job, assigned by the organization. It
is for motivating employees to do better and harder.

The essentials of a good incentive plan are:

a. It should be simple and easy to understand.

b. It should not be costly to operate.

c. It must be discussed with the employees before its

implementation.

d. It should assist in supervision.

e. It should be able to evaluate employee’s performance accurately.

f. For each job, a basic rate must be fixed. It is the minimum wage,
which each worker should get either on hourly or daily basis.

g. It must induce co-operation among the employees.

h. It should encourage worker to perform more and better.

i. It should be acceptable to both employees and employer. The

management will accept only if it is economical whereas employees
will accept if it gives due share to them in increased production.

j. It should ensure sufficient monetary compensation and

recognition to workers for their increased work effort, output and
productivity.

k. It should ensure reduction in unit production cost.

Incentive may be classified into:

1. Financial Incentives.
2. Non Financial Incentives.

1. Financial Incentives:
Money is the main element of financial incentives. Financial
incentives involve money payment by the employer. It boosts the
enthusiasm and self-confidence of the workers. It provides the
workers with economic security and gives the worker a social
security. These are for better productivity and performance.
Financial incentives include higher wages and salaries, bonus, profit
sharing; commission, increment etc.

2. Non Financial Incentives:

Non-financial incentives do not involve money payments. These are
also important in motivating employees. Non-monetary incentives
are useful in increasing production and efficiency.

COMPENSATION SURVEYS;

Compensation surveys help managers to find out compensation in the labour

market which helps them decide how much an employee is supposed to be paid. It
helps to reveal uneven compensation of employees – more or less than the labour
market.

Compensation surveys are done to analyse data on how who is compensated

and how much. A compensation survey includes some of the following things:
 Base salary
 Raise percentages of amounts
 Incentives/bonus received
 Allowance and benefits
 Working hours
 Educational requirements and background of the employee
 City/region the company is based in
 Recruitment source
 Working conditions

Productivity:
Productivity is defined as the amount of output obtained per unit input
employed in the form of labour, capital, equipment and more. There are
varied ways of measuring productivity as per the industry under
consideration. For example, in a factory the productivity can be
measured by taking into consideration the number of hours needed for
production of a unit, whereas in services the efficiency of an employee is
the revenue generated by him/her with respect to the salary he draws
from the organisation.
Steps to Improve Productivity
There are several means to improve workplace productivity. Some of them are
mentioned below:

1. Innovative and high-performing employees: For HR managers, the biggest

challenge in maintaining team productivity is to hire, develop and retain employees
which are self-motivated, agile, have good capabilities and are continuous learners.

2. Effective management: Even the best employees cannot perform effectively

without the presence of a proper support and supervision system. A great manager
is another important factor. Leaders define the direction, goals, roles and purposes
of the workforce and also prioritise them. They are also instrumental in providing the
much needed tools and resources for employee development. HR must step in when
they find that managers are the weak link in ensuring efficiency and try to develop
great managers.

3. Performance metrics: Having an effective system for measuring and reporting

processes and performance aids in reinforcing individual and team goals. Proper
feedback and results help in achieving continuous improvement.

4. Effective rewards: Coupling performance and goals directly with monetary and
non-monetary benefits can play a major role in ensuring high employee productivity.

PERFORMANCE LINKED

The HRM-firm performance linkage has been to take a systems view of HRM by
considering the overall configuration or aggregation of HRM practices.

What are pay structures?

Pay structures, also called salary structures, are organized levels, or grades, of
employee salaries divided by job type. Pay structures typically incorporate
salary ranges for each pay grade, meaning each pay grade is bracketed by a
minimum and maximum salary amount. Companies use external and internal
compensation data analysis to determine their pay structures.

ay structures are important for the following reasons:

 Helping monitor and control company expenses. Well defined

pay structures help companies monitor the amount of money
spent on salaries and control if and when additional money is
allocated for raises or new employees. With set salary ranges in
place, accountants have strict parameters for budgeting and
financial planning.
 Informing employees of current and future salary
expectations. Pay structures provide employees set figures for
expected earnings. This improves transparency and open
communication between employees and employers.
 Remain competitive as an employer. Using current market
salary data ensures employers are offering competitive salaries
compared to other businesses in their industry. This will help
organizations attract and retain the best candidates for open
positions.
 Helpful for calculating raises. Having defined pay grades for
employees alleviates some of the subjectivity involved in
determining pay raises. Employers and employees should
understand the pay structure in place and their corresponding
pay grades.
 Create fair and impartial opportunities for pay
raises. Adhering to market standards and predetermined pay
grades helps employers ensure fair, honest and unbiased
opportunities for pay raises.

COMPENSATION REVIEW AND STRUCTURING

How does the Compensation Review Process Work?

The Compensation Review Process uses shared participation, which

allows participants to propose employee awards during the process
without moving the business process forward, enabling improved
collaboration between participants. By default, Compensation
Reviews calculate a pool or budget amount using a bottom-up
approach.

What are compensation structures?

Compensation structures create a fairer and more predictable process

for determining an individual’s compensation. The alternative to
setting up formal pay structures is to determine salaries based on:
Candidates’ salary history.

Compensation structures are the pay-based frameworks companies

use to establish fair and equitable pay for all employees in the
organization. A compensation structure gives a business clear
guidelines for assigning initial pay rates, managing raises and
distributing bonuses. An effective compensation structure seeks to
dismantle pay practices based on inequitable factors, like past salary
history and ineffective negotiation, and on inherent biases like
gender or race.