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ABM MODULE B concept and ‘time and motion’ studies and

further substantiated by Gantt and Gilberts.
BULLET POINTS
Elton Mayo: Hawthorne Studies.
Chapter-10: FUNDAMENTALS OF
➢ HRM assumes that the management of
HUMAN RESOURCE MANAGEMENT people is an integral part of the resource
management task within an enterprise for
achievement of organizational objectives.
➢ In a highly competitive globalized business
environment, the main differentiator for ➢ The fundamental activities involved in
organizational success is its human resource people management, viz.,
in terms of its skills, knowledge and (i) Recruitment and selection (how do we
attitudes. select the right person?),
➢ Peter Drucker, author of the book 'THE (ii) Training and developing (how do we build
LANDMARKS OF TOMORROW' also known capabilities?),
as the famous management guru observes:
'no matter how much we can quantify, the (iii) Performance appraisal (how do we
basic phenomena are qualitative one's measure results and achievements?)
change and innovations, risk and (iv) Reward and compensation (how do we
judgments, growth and decay, dedication, compensate employees for contribution
vision, rewards and motivation, so on and
so forth. The discipline we need cannot be a HRM is an essential branch of management
technical discipline though it will have that deals with making the optimum usage
many technical areas. of organizational human resources.

➢ An appropriate beginning to understand the On the other hand, HRD is a branch of HRM
fundamentals of people management that focuses on the growth and
would be to appreciate the foundations of development of the workforce in any
an organization. The primary source for organization.
wealth creation in the knowledge era is Role of HR Professional includes:-
Human Capital.
• Supportive Role: Relates to the
Robert Owen: Advocate of better working strengthening of the operating and
conditions for ‘vital machines’. executive levels.
Charles Babbage: Division of labour. • Role of System Development and Research:
Pertains to developing systems that deal
Frederick Taylor: Scientific Management with people and their problems.
Approach famous for his ‘division of labour’
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• Managerial role: Relates to performing ➢ Job analysis comprises three parts job
managerial functions like planning future description, job specification and job
manpower, recruiting, motivating, etc. evaluation.
• Role of Developing Competence: This refers
➢ The job analysis primarily focuses on Job
to developing technical, managerial, and
processing competence. Description (activities involved) and Job
• Process Role: An organization's coping skills Specification (requirement of person in
to respond to the changing environment. terms of qualification and attributes).

➢ The major sources of information of Data

➢ The 'Strategic HRM' is the process of linking
Collection for Job Analysis are Job holders,
HRM with strategic role and objectives in
Supervisors, Customers' feedback and
order to improve business performance, to
Experts (Job analysts).
develop organizational cultures and also to
foster innovation and flexibility. ➢ "Learning and Development" is a systematic
process to enhance an employee's skills,
knowledge, and competency, resulting in
Chapter-11: DEVELOPMENT OF HUMAN better performance in a work setting.
RESOURCES TRAINING for learning related to
present job

EDUCATION Learning to prepare the

➢ HRD today is a process by which the
individual for a different
employees of an organization are helped in
but identified job
a continuous and planned way.

➢ The typical systems developed to enhance DEVELOPMENT Learning for growth of the
achievement of HRD goals include: individual not related to a
specific present or future
• Learning and Development. job.
• Performance Appraisal, Feedback and
Counselling.
➢ Principles of 'Adult Learning includes: -
• Potential Appraisal, Career Planning and
1. Self-Directed
Counselling.
• Transformational
• Organizational Development.
• Experiential
• Human Resource Information System. • Mentorship
• Orientation
• Talent Management and Succession
• Motivation
Planning.
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➢ SAT stands for Systematic Approach to ➢ A 'Career ‘refers primarily to the sequence
Training. and variety of work roles, paid or unpaid,
that individuals undertake throughout their
The steps included Systematic Approach to
lives.
Training: -
➢ The concept of 'career anchor' refers to a
Step 1: Training Need Analysis (TNA) and
personal sense of type of work individual
Identification of Training Needs
wants to pursue and what that work or
Step 2: Preparation of a Training Plan; career means to an individual.

Step 3: Conduct of the training which ➢ Types of Career Anchors:

includes designing the programmer in
1. Technical/Functional Competence
terms of the time, duration, target group,
sequence of inputs and methodology: 2. Managerial Competence

Step 4: Evaluation of the Training 3. Security

Programmed and the Plan; and
4. Creativity
Step 5: Selection and Development of
5. Autonomy
Trainers.
➢ An individual may experience a sequence of
➢ Validation means assessment of whether
roles and relationships in the four career
the training has achieved its laid down
roles labelled as Apprentice, Colleague,
objectives and evaluation means the
Mentor and Sponsor.
measurement of the total effect of the
training programme. ➢ The self-development essentially refers to
developing a mature personality who can
➢ The term 'attitude" is frequently used to
handle different tasks and situations with
describe people in terms of their behaviour
comparative ease.
and its impact on behaviour.
➢ It consists of three aspects:
➢ Attitudes serve four important functions in
the process. These are: (1) The Adjustment • At Individual level.
Function, (2) The Ego-Defensive Function, • At Interpersonal level
(3) The Value- Expression Function, and (4) • At group level
The Knowledge Function.
➢ The concept of locus of control given by Left
➢ A 'Career Path' is a sequence of jobs that court (1969) and Revenson (1972) explains
leads to your short- and long-term career that individuals have beliefs about who is
goals. responsible for what happens in life.
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➢ Another important concept related to ➢ Four life positions can be described as:
influencing others is Power, Kotter (1979)
1. I am OK you are OK (both have value)
has defined power as "a measure of
person's potential to get others to do what 2. I am OK you are NOT OK (I have value but
he or she wants them to do, as well as avoid you don't have value)
being forced to do what he or she does not
3. I am NOT OK you are OK (You have value
want to do.
but I don't have value)
➢ The types of power are: -
4. I am NOT OK you are NOT OK (neither
1. Coercive power person have value)

2. Legitimate or Position Power ➢ Johari Window

3. Reward power Known to Not known

self to self
4. Referent power
Known to ARENA/OP BLIND
5. Expert power
others EN BLIND
6. Knowledge power
Not known ARENA/OP ARENA/
7. Reflected power to others EN OPENBLIND
8. Charismatic power

9. Emotional power
➢ "Emotional Intelligence' refers to the
➢ "The interpersonal need for inclusion is capability of a person to manage and
defined behaviourally as the need to control his or her emotions and possess the
establish and maintain a satisfactory ability to control the emotions of others as
relationship with people with respect to well.
interaction and association.
➢ The five components of Emotional
➢ There are two kinds of Parent ego: Intelligence: -
(i) Nurturing parent and Self-Awareness
(ii) Critical parent Self-Regulation
➢ Synergy is the highest activity of life, it Self-Motivation
creates new untapped alternatives; it
values and exploits the mental, emotional Empathy
and psychological differences between Social skills
people.
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➢ "Morale" is the general mood of a person 3. Counter the increasing difficulty and
and whether he is confident, motivated and costs of recruiting employees externally.
willing to perform tasks.

➢ Talent management refers to the

anticipation of required human capital for
Chapter-12: HUMAN IMPLICATIONS OF
an organization and the planning to meet ORGANISATIONS
those needs.

➢ "Talent' is all about three Cs i.e., ➢ The term employee behaviour, refers to the
Competence which deals with the way in which employees respond to specific
head/mind (being able to do), Commitment circumstances or situations in the
which deals with hands and feet (action) workplace.
and Contribution which deals with the
heart (doing it well). ➢ The behaviour of an individual is influenced
by several factors: -
➢ The elaborative key elements of talent
management include: • Environmental Factors
• Personal Factors
1. Attracting the right talent • Organizational Factors
2. Onboarding • Psychological Factors

3. Creating a Talent pool ➢ Synergy is the highest activity of life, it

4. Designing Talent Career path creates new untapped alternatives; it
values and exploits the mental, emotional
5. Retaining Talent and psychological differences between
➢ Succession planning is a process whereby people.
an organization ensures that employees are ➢ There are some basic assumptions about
recruited and developed to fill each key role human behaviour at work:
within the company.
1. There are differences between
➢ The following objectives are achieved individuals.
through succession planning/career
planning: 2. Concept of a whole person.

1. Improve employee commitment and 3. Behavior of an individual is caused.

retention. 4. An individual has dignity.
2. Meet the career development 5. Organizations are social systems.
expectations of existing employees.
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6. There is mutuality of interest among i.e., more of a heredity impact than the
organizational members. environment

7. Organization behavior is holistic. ➢ 3. Self-Concept Theory

➢ According to Raymond Cattell, Personality is This theory believes that personality and
a pattern of traits and that helps to behavior are to a great extent determined
understand his personality and predict his by the individual himself.
behaviour.
➢ 4.Social Learning Theory
Eight developmental stages in explaining
This theory believes that personality
the personality: -
development is more a result of social
Stage 1: Trust vs. Mistrust variables than biological factors.

Stage 2: Autonomy vs. Shame and Doubt The characteristics and dimensions
attributed to the left and right hemispheres
Stage 3: Initiative vs. Guilt Stage 4: Industry
of the brain are indicated in the following
vs. Inferiority
table:
Stage 4: Industry vs. Inferiority
➢ Left Hemisphere
Stage 5: Identity vs. Role Confusion
Controls Right side of body
Stage 6: Intimacy vs. Isolation
• Speech/Verbal
Stage 7: Generativity vs. Stagnation
• Logical/Mathematical
Stage 8: Integrity vs. Despair
• Linear/Detailed
➢ 1.Psycho-analytical Theory (PT)
• Sequential
This theory is based primarily on the
personality structure is primarily founded • Controlled
on unconscious framework and that human • Intellectual
behavior and motivation are the outcome
of psychoanalytic elements, viz., id, the ego, ➢ Right Hemisphere
and the super ego. Controls Left side of body
➢ 2. Trait theory • Spatial/musical
This theory believes that the traits of a • Holistic
person which determine his personality and
behavior are basically inherent to a person, • Artistic/symbolic

• Simultaneous
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• Emotional Type Personality Congruent
Characteristi Occupations
• Intuitive, creative
cs
➢ Table describes the six types, their
Social: Sociable, Social
personality characteristics, and gives
friendly, worker,
examples of congruent occupations. Prefers
cooperative, teacher,
activities that
Type Personality Congruent understandin counsellor,
involve helping
Characteristi Occupations g clinical
and developing
cs psychologist
others
Realistic: Shy, genuine, Mechanic,
Conventional: Conforming, Accountant,
persistent drill press
Prefers physical efficient, corporate
stable, operator Prefers rule-
activities that practical, manager
conforming, assembly- regulated,
require skill, unimaginativ
practical line worker, orderly, and
strength and e, bank
farmer unambigu- oust
coordination teller.
activities
Investigative: Analytical, Biologist, flexible file
original, economist, clerk
Prefers
curious, mathematici
activities that Enterprising: Self- Lawyer, real-
independent an, news
involve confident, estate agent,
reporter Prefers verbal
thinking, ambitious, public
activities where
organizing and energetic relations
there are
under- standing domineering specialist,
opportunities
small
to influence
business
others and
manager
attain power

Artistic: Imaginative, Painter,

dis- orderly, musician,
Prefers
idealistic, writer,
ambiguous and
emotional, interior-
unsystematic
impractical decorator
activities that
allow creative
expression
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➢ The three predominant traditional HR level for the purpose of increasing
approaches for managing diversity are: efficiency.
diversity enlargement, diversity sensitivity
2. In the Human Relations Model, workers
and cultural audits
were expected to accept management's
➢ Gender Issues: authority because supervisors treated them
with consideration and were attentive to
For jobs requiring greater physical strength,
their needs.
men are preferred, whereas for the jobs
requiring hospitality and emotional aspects, 3. Maslow's Hierarchy of Needs states that
women are preferred. needs generally follow a hierarchy, i.e.,
when a need is satisfied then only the next
➢ Motivation in an organizational context is
need becomes prominent in that hierarchal
referred as 'the extent of willingness of an
order.
employee to respond to the organizational
requirements' The identified five needs in an order of
hierarchy, viz.
The various theories of motivation are:
1. Physiological Needs
1. Scientific Management or Rational
Economic View 2. Safety/Security Needs

2. Human Relations Model 3. Social Needs

3. Abraham Maslow's Need Hierarchy 4. Self-esteem Needs

Theory
5. Self-actualization Needs.
4. Frederick Herzberg's Two-Factor Theory
4. Herzberg’s Two-Factor or Motivation-
5. Clayton Alderfer's ERG Theory Hygiene Theory includes;-

6. Achievement Motivation Theory 1. Motivational Factors:-

7. Victor H Vroom's Expectancy Model (i) Recognition

8. James Stacy Adams' Equity Theory (ii) Advancement

9. Lyman W. Porter and Edward E Lawler - (iii) Responsibility

Performance Satisfaction Model
(iv) Achievement
10. Reinforcement Theory
(y) Possibility of Growth
1. Scientific Management Theory describes
(vi) Work itself
a set of methods and techniques applied to
organization of work at the operational
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2. Hygiene or Maintenance Factors: - 3. Need for affiliation.

(i) Company policy and administration 7. Vroom's Expectancy Model

(ii) Technical supervision There are three important elements in the

model.
(iii) Interpersonal relations with subordinates
1. Expectancy
(iv) Salary
2. Instrumentality
(v) Job security
3. Valence
(vi) Personal life
8. Adams' Equity Theory
(vii) Working conditions
Adams' equity theory of motivation says
(viii) Status
that to be motivated, individuals need to
(ix) Interpersonal relations with supervisors perceive that the rewards they receive for
their contributions are fair, and these
(x) Interpersonal relations with
rewards are similar to those received by
peers/colleagues
their peers.
5. ERG Theory
The following terms are relevant to this
The ERG theory has identified the needs into theory:
following three categories:
A. Person
(i) Existence Needs: Monetary rewards,
B. Comparison
working conditions, job security,
incentives. C. Inputs
(ii) Related Needs: Natural desire to develop
social relationships and develop friendship D. Outcomes
and warmth relationships. 9. Porter's Performance Satisfaction Model
(iii) Growth Needs: To grow beyond his
potential and learn new skills and This model is based on four basic
capabilities. assumptions about human behavior:

6. Achievement Motivation Theory (i) According to this model, individual behavior

is determined by a combination of factors
According to this theory, there are three
in the individual and in the environment.
needs:-
(ii) Individuals are assumed to be rational
1. Need for achievement
human beings who make conscious
2. Need for power decisions about their behavior in the
organizations.
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(iii) Individuals have different needs, desires ➢ Several ways of motivating employees in
and goals. the work situation: -

(iv) On the basis of their expectations, 1. Money

individuals decide between alternative
2. Appreciation
behaviors and such decided behavior will
read to a desired outcome. 3. Job enlargement

The Various Elements of Porter and Lawler 4. Job enrichment

Model
5. Job rotation
1. Effort,
6. Participative management
2. Performance and
7. Quality of work
3. Satisfaction.
➢ Role means a set of expected behaviour
10. Reinforcement Theory: patterns attributed to someone occupying a
given position in a social unit.
Reinforcement theory of motivation is
based law of effect, where behaviors are ➢ Certain important aspects of role: -
selected by their consequences and
• Role Stagnation
overlook the individual's internal state.
• Inter-Role Distance
➢ Behaviour serves a purpose and has a
reason, including: • Role Set Conflicts

• Communication - through use of body The role set conflicts take the following forms.
language, facial expressions, gestures and
• Role Ambiguity
silence
• Role Expectation Conflict
• Function - to help meet a need, attract
attention, gain an internal or sensory • Role Overload
sensation, access an item or activity, or get
• Role Erosion
away from something.
• Resource Inadequacy
➢ Motives are defined as needs, wants,
drives, or impulses within the individual. • Personal Inadequacy
➢ Goals are referred to as 'hoped for' rewards • Role Isolation
towards which motives are directed.
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Chapter-13: EMPLOYEES FEEDBACK 5. Warmth: The general feeling of
AND REWARD SYSTEM fellowship that prevails in the workgroup
atmosphere, the prevalence of informal
supporting culture and social groups.
➢ Employees' Feedback helps in diagnosing 6. Support: The perception about
specific problems and in initiating helpfulness of managers and other
organizational development initiatives by employees in the group, emphasis on
opening up two-way communication about mutual support from above and below in
matters of practical significance to the the hierarchy.
organization and its employees.
7. Standards: The perceived importance of
➢ Climate surveys are most popular and implicit and explicit goals and performance
prevalent means to gather feedback from standards, the emphasis on doing a good
the employees job, the challenge represented in personal
➢ The coverage of a typical survey can be as and group goals.
follows: 8. Conflict: The feeling that the managers
1. Structure: The feeling that employees and other workers want to hear different
have about the constraints on the groups, opinions, the process of conflict resolution,
rules, regulations, procedures, opportunity to express the views, etc.
communications channels delegation and 9. Identity: The feeling of belonging to the
authority, etc. organization and perceived value in the
2. Responsibility: The feeling of being your organization and work group, etc.
own boss, clarity of role and responsibility ➢ “Total Rewards" is described as the full
vis-à-vis superior, subordinates and peers, combination of monetary and non-
etc. monetary investments, they make in their
3. Reward: The feeling of being rewarded workforce to attract, retain and engage the
for a job done well, perception about people they need to operate its business
reward and punishment system, perception successfully.
about pay and promotion, etc. ➢ The total rewards framework shows us that
4 Risk: The sense of riskiness and challenge there are three primary categories of
in the job and in the organization, and any rewards: -
emphasis on taking calculated risk (risk • Pay
taking is encouraged and bona fide errors
are protected) or playing safe is encouraged • Benefits
and accepted. • Intangible Rewards
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➢ There are five pillars of a comprehensive Internal and external factors determine the
rewards system: levels of compensation

1. Compensations ➢ Internal factors could be: capacity of the

company to pay, bargaining power of the
2. Benefits
unions, attraction and retention pressures,
3. Flexibility the motivational factor, etc.
4. Performance recognition ➢ External factors include: labour laws
5. Career development governing the subject of wages, provisions
of Companies Act in respect of
Developing a rewards strategy remuneration of managers, different wage
concepts, compensation surveys,
➢ While developing a Reward Strategy, Total
recommendations of arbitrations, pay
Rewards components as having two critical
commissions, etc.
identifying characteristics:
➢ Adequacy of Wages
1. Program: To be considered part of Total
Rewards, the component must consist of a The Committee on Fair Wages pronounced
specific program that the company makes certain wage concepts such as:
an investment in and manages.
• Minimum wages
2. Value: To be considered part of Total
Rewards, the component must have some • Living wages
specific ascribed value in the eyes of • Fair wages
employees.
• Need-based minimum wages
➢ The jobs are broadly classified in four
groups and the compensation for them is ➢ Job Evaluation
commonly referred to as shown below. The Job Evaluation is the process of
assessing the relative worth of the jobs in
• Managerial (top, middle, junior) . . .
remuneration an organization.
• Supervisory . . . salary ➢ The objectives are:
• Clerical or Administrative . . . salary
• Unskilled, semi-skilled, skilled and highly • To determine the compensation rates
skilled . . . wages • To link pay with the requirement of the
job
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• To provide for pay differentials taking The employee decides what he will draw as
into account skills, efforts, and hazards basic salary, what amount as house rent
required in each job allowance, etc.

• To establish a compensation structure. This is of course within the overall package

level decided for the employee beforehand.
➢ Job Evaluation Techniques: -
➢ Practice in the Indian Banking Industry
1. Non-quantitative Methods:
Since 1966, however, so far a "workman"
(a) Ranking or Job Comparison
staff is concerned, the wages are being
(b) Grading or Job Classification settled through Bipartite Settlements
between the Management of Banks
2. Quantitative Methods:
(represented by Indian Banks' Association)
(a) Point Rating on the one hand, and their Workmen
(represented by various central trade
(b) Factor Comparison
unions in the industry) on the other.
➢ “Compa-Ratio” An additional tool over Job
The settlement is binding on parties for the
Evaluation
specified period of time. At present the
"Compa-ratio" is defined as the percentage settlement period is for 5 years.
obtained by dividing the actual salary paid
to an employee by the midpoint of the
salary range for that position. Chapter-14: PERFORMANCE
Simply put, MANAGEMENT

CR (Compa-ratio) = (AS (actual salary)/ (MP

(midpoint of pay range)) × 100 ➢ 'Performance Appraisal' is a process by
➢ Objectives: which the management finds out how
effective it has been in hiring and placing
Pay raise the employees.
Promotion ➢ Filippo further describes the choices the
Merit Pay organization has in this regard:

➢ Compensation Structure: - • A casual, unsystematic and haphazard

appraisal.
Many companies in the private sector offer,
what is known as a 'cafeteria' or 'menu' • A traditional and systematic measurement
option to their employees. of employee characteristics and employee
contribution.
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• Mutual goal setting, i.e., Management by • Grading Method: Features such as
Objectives (MBO). analytical ability, job knowledge, etc. are
considered for grading
➢ Step included in the Performance Appraisal
• Graphic or Linear Rating Method: The
Process: - method considers two factors: employee
i. The process begins with the organization characteristics and contribution
setting the 'performance standards' in • Forced Distribution Methods: The factors
advance. normally considered are job
performance and suitability for
ii. The performance standards then are promotion
required to be communicated to the • Group Appraisal Method: This is a
employees. method in which employees are rated
by a group of appraisers consisting of the
iii. The next stage is to measure the
immediate supervisor and three or four
performance others, who have some knowledge of the
iv. Performance level of the employee is performance of the employee
then compared with the benchmark or • Comparison Method: two employees are
standard already established. compared at a time and the overall
ranking is worked out by taking into
v. The outcome is discussed with the account how many times an employee
employee was preferred in comparison with other
employees.
vi. The last step is to initiate corrective
measures
➢ Modern Methods:
➢ Different methods of performance
• Assessment centre workshops: The
appraisal.
behavior of the employee is assessed
They can be grouped as traditional methods through their performance on different
and modern methods: activities/exercises such as group
discussion, business games, in-basket
➢ Traditional Methods:
exercise, committee meetings,
• Free Form Essay Method: The appraiser psychometric tests, etc.
makes a free form, open-ended appraisal
• Management by Objectives (MBO): This
of the employee
method attempts to minimize external
• Straight Ranking Method: People are
controls and emphasizes on the motivation
rated in order of merit and placed in a
levels of the employees.
grouping
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• MBO Process 2. The second part is appraisal of the
performance by the reporting authority of
1. The organizational goals are first set and
the employee.
are clearly stated in measurable targets.
3. The third part is the review by the
These goals have to be realistic and
superior of the reporting authority
achievable, although challenging.
• 720 Degree Performance Appraisal is the
2. The goal setting process is a joint
evaluation of an employee from all the
process. The short-term performance goals
aspects and giving timely feedback to
are set jointly by the employees and their
ensure that the person is able to achieve
superiors.
the set goals before the next appraisal
3. There are frequent reviews of
• Assessment Centre Method: The
performance through one-to-one meetings.
performance appraisal system is basically
4. Sharing of feedback in such meetings focused on measuring the present
helps in altering the course of action. performance of the employee on the given
assignment
• Human Asset Accounting Method: In this
method the employees of the organization • Characteristics of a Good Performance
are treated as Human Capital and money Appraisal System
estimates are attached to the value of an
A good performance appraisal system
organization’s personnel and its external
should essentially possess the following
goodwill.
characteristics:
• Behaviourally Anchored Rating Scales
• Objective
(BARS): The jobs are described through
illustrations or by giving critical incidents of • Transparent
effective and ineffective performance.
• Provide timely feedback
• In 360-degree Appraisal Method: the
• Provide opportunity for self-appraisal
appraisal is generally done by the seniors,
colleagues (peers), subordinates, suppliers, • Common Errors in Performance Appraisals
customers and all other stakeholders
• Halo Effect
➢ The commonly used performance appraisal
• Horn Effect
method in the service industry including
banking is the one which is in three parts. • Central Tendency
1. The first part consists of self-appraisal by • Strict Rating
the appraise.
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➢ Appraisal interview refers to the meeting of ii. Find out how they think while at Work.
the appraiser and appraise for getting
iii. Assess skills and change job-role if need
information and clarifications for the
be.
purpose of appraising the performance
iv. Show Appreciation.
• Do's
v. Set high expectations.
• Allow the employee to do the maximum
talking. vi. Motivating through Counselling.

• Encourage him to describe his success and ➢ The term 'competencies' to refer to the
failure. behaviours or personal attributes
supporting an area of work.
• Create an atmosphere where he will open
up. • Technical Competencies (related to hard
skills) are easier to identify and describe as
• Use clear and actionable language. these are related to the processes and
procedures to be followed in converting
• Ask the right and relevant questions.
inputs into outputs, etc.
• Praise him for his achievements. • Behavioural Competencies (related to soft
skills) are harder to observe, these may
➢ Counselling has been defined as an activity
include listening, taking initiative, problem
where one individual uses a set of skills to
solving, interpersonal, leadership, etc.
help another to take responsibility for, and
to manage his own work/behaviour related ➢ Competency Mapping is the process of
decision-making. identifying the key competencies for a
➢ The Counselling Process consists of three particular position in an organization and
stages: then using it for job evaluation,
recruitment, training & development,
(a) Recognizing the problem or issue, performance management, succession
(b) Helping the employee to realize the planning which results in talent induction,
problem and management development, and appraisal
and in identifying training needs.
(c) Managing the problem. The following (Nedunchezhian & Prabhakar 2007)
could be considered as counselling skills
➢ Steps followed in Post-Performance-based
➢ Common strategies to manage average Approach are:
performers to turn them into productive
workforce include:- A. Identifying outstanding performers,
below average and average performer
i. Understand how they define Success.
B. Interviewing them by using BEI
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C. Generating the list of competencies • Group Discussion: could be in the form of a
needed (from outstanding performers) and debate to discuss some issue. The
not needed (from below average or average communication skill, ideation and
performers). leadership skills are tested through this
type of GD
➢ Job-focused Approach
• Psychometric Tests: Three types of tests,
Understanding the purpose of the job; asks
viz., aptitude tests, ability tests and
the incumbents to list down the job tasks in
personality tests are generally used in an
the questionnaire, Mapping each
assessment centre.
accountability or major tasks to the
concerned job. • In-tray or In-basket Exercise: It is a
simulation exercise representing day-to-day
➢ The Assessment centre can be defined as a
decision-making situation based on either
variety of testing techniques designed to
real case happened in the organization or
allow the candidates to demonstrate, under
some commonly observed situations/
standardized conditions, the skills and
cases.
abilities that are most essential for success
in a given job. • Case Studies/Case Analysis Exercise: In this
➢ Seven essential elements of Assessment type of exercise the candidates are
Centre: presented with the task of making a
decision about a particular business case
i. Multiple Assessment Technique
• Role Play: It is a method of adopting roles
ii. Multiple Assessors from real business situations, viz., boss and
iii. Pooling of information his/her subordinate(s), etc.

iv. Time of Observation • Business Games/Simulation Exercise: A real

life situation like running a manufacturing
v. Design of Exercises operation, stock trading, making a
vi. The dimensions, attributes, monument where a group of people
characteristics. interdependently perform various activities.

vii. Techniques used ➢ In Presentation Exercise the participants are

asked to make an extempore speech on a
➢ The main exercises done in Assessment
topic given to him/her only 5 to 10 minutes
Centres are 'Leaderless Group Discussion',
before; the organization of thoughts, logic
'Psychometric Tests', 'In Basket or In Tray'
and the attitude about the issue are judged
exercise, 'Case Study/Analysis', 'Role Play'
through this exercise.
exercises, Business Games, Presentations,
etc.
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➢ Role of Assessors in Assessment Centres additional critical incidents in areas that
may have been overlooked.
They need a common understanding of the
purpose of the development centre, the 5. Conclusion and Summary: Conclude the
relevant dimensions, the behavior to be interview by thanking the interviewee for
identified for each dimension, how to rate his or her time and write down and
the behavior exhibited and how to give summaries what you have gathered.
specific relevant, confidential feedback to
➢ Limitations of BEI: -
the participants.
i. The method relies on the recall of the
➢ Behavioural Event Interview (BEI) is a
respondent.
structured interview technique that is used
to collect information about past behaviour. ii. The interviewer asks for knowledge or
specific information that was the basis for
• BEI data are the richest source of data
decisions, thoughts, or actions.
about competencies that predict superior
or effective job performance. iii. The interpretation and pattern finding
from the answers solely reside on the
➢ A BEI conducted for Job Competency
interviewer who may or may not be an
Assessment contains following five steps.
expert in Behavioral interview.
1. Introduction and Explanation: The real
purpose of this step in the BEI is to
establish a sense of mutual trust and Chapter-15: CONFLICT MANAGEMENT
goodwill between interviewer and the AND NEGOTIATION
interviewee so that he or she is relaxed,
open, and ready to talk.

2. Job Description (Roles & Responsibilities ➢ Conflict is defined as a clash between

and Accountabilities): The purpose of this individuals arising out of a difference in
step is to get the interviewee to describe thought process. Attitudes, understanding,
his or her most important job tasks, interests, requirements and even
responsibilities and desired output. sometimes perceptions.

3. Behavioral Events: The purpose of this ➢ Conflict at the workplace, is the struggle
step is to get the interviewee to describe that happens when people feel they have
complete stories of critical incidents. incompatible goals, wants, demands or
needs.
4. Characteristics needed to do the Jobs:
The purpose of this step in the BEI is to get
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PRINCIPLES OF 'CONFLICT': Relationship conflict is a type of personal
conflict that develops over disagreements
• Conflict is universal.
and differences between individuals or
• Conflict is associated with incompatible groups.
goals.
c) Value Conflict
• Conflict is associated with scarce resources.
Value conflict arises from fundamental
• Conflict is associated with interference. differences in the life experiences, cultures,
identities, values and beliefs.
• Conflict is not a sign of a poor relationship.
➢ Intra-individual/Intra-personal conflict:
• Conflict cannot be avoided.
Conflicts can also arise intra-personal,
• Conflict cannot always be resolved. where an individual's objective and vision
• Conflict is not always bad. differ from his/her company's overall
vision. This refers to a conflict within an
➢ The main characteristics of Conflict can be individual.
summarized as under:
Conflict can be Intra-individual conflict
1. Conflict involves opposition arises from frustration, numerous roles that
2. A conflict is more than just a demand equal attention but is riot always
disagreement possible to devote, and goals having both
negative and positive aspects.
3. Response to Conflicts is based on
perceptions ➢ There can be three types of Intra-
individual/Intra-personal Conflict which
4. Conflict is inevitable are:
5. Conflict will always remain among (i) Goal conflict
humans
Another common source of conflict for an
6. Conflict cannot be avoided individual is a goal that has both positive
7. Conflicts are an opportunity for growth and negative features or two or more
competing goals.
TYPES OF 'CONFLICTS':
➢ 3 major forms of goal conflict may be
(a) Task Conflict distinguished:
Task conflict involves differences based on • Approach-approach conflict, where the
work details and goals. individual is motivated to approach two or
(b) Relationship Conflict more positive but mutually exclusive goals.
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• Approach-avoidance conflict, where the • One type is the conflict between the person
individual is motivated to approach a goal and the role. There may be a conflict
and at the same time is motivated to avoid between the person's personality and the
it. The single goal contains both positive expectations of the role.
and negative characteristics for the • A second type is an intra-role conflict
individual. created by contradictory expectations
about how a given role should be played.
• Avoidance-avoidance conflict, where the
individual is motivated to avoid two or • Finally, inter role conflict results from the
more negative but mutually exclusive goals differing requirements of two or more roles
that must be played at the same time. Work
(ii) Conflict from frustration roles and non-work roles are often in such
Frustration occurs when a motivated drive conflict.
is blocked before a person reaches the REASONS FOR CONFLICT:
desired goal.
1. Resistance to change
➢ The frustrated individuals adopt any of four
Défense mechanisms: aggression, 2. Work habits
withdrawal, fixation, or compromise. 3. Poor communication
• Aggression refers to the attack of the 4. Personality clashes
barrier, physical or symbolically.
5. Poor performance
• Withdrawal refers to backing away from the
barrier. 6. Poor supervision

7. Other reasons
• Fixation refers to the continuation of efforts
to break the barrier. ➢ Conflicts may also be caused by any one or
more of the following reasons:
• Compromise refers to the search for a new
goal. • Economics: Insufficient remuneration to
employees.
(iii) Role conflict

The final reason for the intra-personal • Stress from working conditions such as
conflict is the need of an individual to play functional situations.
several roles simultaneously but finding • Weak Leadership: When the
time and resources inadequate to do so. leader/manager is less qualified and/or
➢ There are 3 major types of role conflict. having less experience than the team
members/employees.
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• Status: When senior position is needed for 5. Resolution Phase: The resolution phase
status and a "wrong" person is promoted. explores the various options to resolve the
conflict.
• Power struggle: When everyone wants to
be a leader and nobody wants to be a CONFLICT RESOLUTION:
follower.
Following three step formula should be
• Incongruence: An employee is required to followed to resolve a conflict:-
do something that is beyond his/her liking 1. Listen
or interests.
2. Talk
DIFFERENT PHASES OF 'CONFLICT':
3. Resolve
Basically, a Conflict can have five phases,
which are as under: ➢ According to the team of Helpguide.org, the
following process of resolving conflict can
1. Prelude Phase: It involves all the factors ensure positive results to deal with the
which possibly cause a conflict among
issue:
individuals.
(i) Listen for what is felt as well as said
Lack of coordination, differences in
interests, dissimilarity in cultural, religion, (ii) Make conflict resolution the priority
educational background, etc., are vital rather than winning or "being right"
aspects in arousing a conflict. (iii) Focus on the present
2. Triggering Phase: No conflict can arise on (iv) Pick your battles
its own.
(v) Be willing to forgive
There has to be an event which triggers the
conflict. (vi) Agree to disagree

3. Initiation Phase: Initiation phase is ➢ The Thomas-Kilmann Model identifies five

actually the phase when the conflict has different approaches to resolving conflict.
already begun. These approaches include:

Heated arguments, abuses, verbal (a) Avoiding

disagreements are all warning alarms which Someone, who uses a strategy of
indicate that the fight is already on. "avoiding" tries to ignore or sidestep the
4. Differentiation Phase: It is the phase conflict, hoping it will get resolved itself in
when the individuals voice out their course of time or dissolve soon.
differences against each other.
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(b) Accommodating Step 3: Take suggestions for solution

Using the strategy of “accommodating" to After getting each party's viewpoint, the
resolve conflict involves taking steps to next step is to get them to identify how the
satisfy the other party's concerns or situation could be changed.
demands at the expense of your own needs
Step 4: Identify acceptable solutions
or desires.
Listen for the most acceptable course of
(c) Compromising
action. Point out the merits of various
The strategy of "compromising" helps in ideas, not only from each other's
finding an acceptable resolution that will perspective, but in terms of the benefits to
partly, but not entirely, satisfy the concerns the organization.
of all parties involved.
Step 5: Final agreement
(d) Competing
The goal is to reach a mutually accepted
The conflict resolution strategy of agreement.
"competing" tries to satisfy the desires of
CONFLICT MANAGEMENT
the manager at the expense of the other
parties involved. A manager should take following actions to
minimize conflicts:
(e) Collaborating
1. Regular Review of Job Descriptions
"Collaborating" involves finding a solution
that entirely satisfies the concerns of all With the pace of change, the job
involved parties. description must also change.

➢ The conflict resolution process in five steps 2. Establish Rapport and build Relationship
can be framed as under: with all your Subordinates

Step 1: Find out the source of the conflict Meet them at regular intervals; ask them
about their achievements, problems, and
The more information you have about the
challenges
cause of the conflict, the more easily you
can help to resolve it. 3. Regular Reports

Step 2: Look beyond A manager must get progress report about

his subordinates regularly, indicating
During the conversation, you can look
achievements, current needs and future
beyond the triggering incident to see the
scenario.
real cause.
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4. Training • Follow-up to monitor actions

Every manager needs to be provided • Decide what to do if the conflict remains

training in interpersonal communication, unresolved
conflict management and delegation of
NEGOTIATION SKILLS FOR RESOLUTION OF
authority.
CONFLICTS:
5. Mutual Development of Procedures
➢ Conflicts between employees: Employees
For routine tasks, the procedures should be may sometimes encounter conflict about
developed keeping in mind the inputs responsibilities or work quality. Resolving
received from employees. the conflict and addressing these concerns
through negotiation is a primary duty of
6. Holding Regular Meetings
supervisors and managers.
The managers need to hold regular
management meetings to inform ➢ Compensation: Whether finalizing salary for
subordinates about new initiatives to be a new employee or entering a contract with
taken and the progress of current a vendor, finding a mutually acceptable rate
programmers. often requires negotiating between
differing ideas of fair pay.
7. Suggestion Box
➢ Disputes between a business and the
Consider such a box in which employees public: Businesses that serve the public,
can provide suggestions. sometimes need to respond to a dissatisfied
➢ The following aspects need to be taken due customer or group of concerned individuals.
care while framing a Conflict Management ➢ Disagreements during collaboration: Project
Policy and finalizing a Conflict Management teams could encounter conflict on factors
Process: like how to use limited resources or
• Acknowledge that a difficult situation may approach a client request.
exist ➢ Skills/Strategies for Resolution of Conflicts
• Allow individuals to express their feelings 1. Effective communication Skills
• Understand and define the problem 2. Listening Skills

• Determine underlying need 3. Discussion

• Find common areas of agreement, no 4. Patience

matter how small
5. Impartial
• Find solutions to satisfy needs
6. Never Criticize
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7. Positive Attitude • A good HRMS will keep business compliant,
automate workflows and manage employee
8. Address the conflict, not the person
database and help in tasks as simple yet
9. Find shared interests crucial, such as employee document
sharing.
10. Set an objective
ROLE OF INFORMATION TECHNOLOGY IN
11. Determine the 'Best Alternative to a HRM:
Negotiated Agreement' (BATNA)
1. Floating of employee database at
multiple places such as field units, field
Chapter-16: HRM AND INFORMATION administrative units as well as at the
corporate (control) office can be avoided
TECHNOLOGY
hence preventing duplication of data.

2. Maintaining and storing voluminous

➢ Human Resource Management System employee database such as traditional data
(HRMS) refers to a suite of software that regarding salary, allowances, increments,
organizations use to manage internal HR leave, etc. can be done smoothly through
functions. IT.

• From employee data management to 3. Updating the data could be done partially
payroll, recruitment, benefits, training, by different individuals from different
talent management, employee engagement locations.
and employee attendance.
4. The decisions related to HR - day-to-day
• HRMS systems put information about an or policy reviews – need to be embedded in
organization’s most valuable assets, i.e., databases to achieve objectivity and
human resources in front of the people who consistency in decisions.
need them.
Such objectivity is imperative and can be
• An HRMS can help manage, distribute and achieved as IT enhances transparency.
maintain various employee and candidate
5. To examine how the existing practices or
information and workflow across the HR
policies are functioning and whether there
department.
are biases/prejudices in any one, the
• A cloud based HRMS also enables database available could be analyzed.
employees to access the self-service portal 6. To ensure adherence to statutory
to update their information at ease requirements, maintaining of such database
avoiding human errors. is needed.
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HR INFORMATION AND DATABASE improved timeless and quality of decision
MANAGEMENT: making.

Data stored can include everything from • Generating a greater number of accurate
employee details to manager information, and real time human resource related
holiday and absenteeism, rotas or standard reports.
working hours, clocking on and off times,
• Increase competitiveness by Re-engineering
timesheets and expenses. Plus, any other
human resource processes and functions.
information that can assist HR with workforce
management. ➢ Maintenance of Database, Access Control
and Use for Decision Making
Employee Self Service is a module dedicated
to allowing staff to contribute to their own HR The Decision Support System (DSS), Expert
admin - reducing the burden on the HR team. Systems, Structured Query Language (SQL),
Artificial Intelligence, Data warehouse and
HUMAN RESOURCE INFORMATION SYSTEM
Data Mining tools help not only in accessing
(HRIS)
the relevant data but also help the
Human Resource Information System (HRIS) is decision-maker to take a better- and well-
a systemic way of storing data and informed decision.
information for each individual employee to
HUMAN RESOURCE MANAGEMENT SYSTEM
aid planning, decision making, and submitting
(HRMS):
of returns and reports to the external agencies
HRMS modules can assist with:
Need for HRIS in Organizations:
• Managing payroll
• For effective and realistic evolving of HR
• Recruitment and onboarding
policies, programmers and schemes, etc.
• Gathering, storing, and accessing
• Facilitating timely and accurate decision employee information
making in areas like promotion, transfer, • Keeping attendance records and tracking
nomination, setting employees provident absenteeism Performance evaluation
funds, retirement, gratuity, leave travel • Benefits administration
concession and earned leave compensation. • Learning management
• Employee self-service
• Supplying data and submitting returns to • Employee scheduling
government and other statutory agencies • Analytics and informed decision making
with ease and comfort.

• Collecting appropriate data and converting

them to information and knowledge for
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➢ Some tips for identifying the right HRMS for 2. Relational e-HRM
your industry and organization:
It is concerned with the supporting business
• Understand the basic features of the HRMS processes, viz., Training, recruitment,
and how it can address compliance selection, etc.
problems and challenges posed by a
3. Transformational e-HRM
growing workforce and evolving
organizational structure It is about strategic HR exercises such as
knowledge management and strategic re-
• Identify the strengths of several vendors
orientation.
and compare their performances
E-HRM Activities:
• Do your research and discover which
technology best meets your needs 1. e-Recruitment:

• Determine which HRMS offers the best user Through e-Recruitment, companies usually
experience for your employees hire the candidates using the internet as a
medium
• Assess the HRMS Company as a whole,
including its customer service, practices, 2. e-Selection:
and success in addition to the company's HR department using the online selection
product process must ensure that each step
E-HRM: complies with the procedural requirements,
viz., Project steps, vendor selection,
E-HRM can be defined as the planning, assessment steps, feedback to the
implementation and application of candidates, etc.
information technology for both
networking and supporting the HR 3. e-Performance Management:
activities. Many organizations make use of web-based
➢ Various Types of e-HRM technology to evaluate the performance of
an individual using the web portal.
1. Operational e-HRM
4. e-Learning:
It relates with the managerial elements of
HR division like payroll and employee It means using the internet or
personal data. organization’s intranet to facilitate the
training and development programmers for
the workforce.
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5. e-Compensation: and structuring it for effective and efficient
use among its employees and teams.
An organization using the compensation
management online enables it to gather, The five core knowledge management
store, analyze, and distribute the components: people, processes,
compensation data or information to technology, structure and culture.
anyone at any time.
➢ Steps for Implementing Effective Knowledge
HR RESEARCH: Management Programmed

Types of Applied Research: 1. Establishing objectives

1. Statistical approach: 2. Prepare for change

The researchers generate statistical 3. Defining high-level Process

standards from the existing records to
4. Define Technology needs
evaluate the activities and programs.
5. Assess Present status of KM in the
2. Comparative approach:
Organization
The research team of the organization
6. Draw an Implementation Plan
directly compares its organization with
another organization to figure out the areas 7. Implementation stage
of poor performance.
8. Monitor & Measure the KM Programmed
3. Outside authority approach:
➢ Benefits of Effective Knowledge
Here the research team counts on the Management:
expertise of the consultant or published
1. Lower Costs
researched records as the standards of
activity or performance evaluation. 2. Improved Decision-making Power

4. Compliance approach: 3. Easy to Find Information

The compliance helps us to know whether 4. Tracking all Ideas, Documents, and Other
the organization is complying with the Data
company policies and legal regulations or
5. Preventing
not.
6. Learning from Mistakes
KNOWLEDGE MANAGEMENT:

'Knowledge Management' is defined as the

process of creating, identifying, and
managing knowledge of an organization
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TECHNOLOGY IN TRAINING • Can prove costly as expensive H/W and S/W
are required
Different Types of IT-based Training
Programs: HR ANALYTICS:

(i) Virtual instructor-led training (VILT): This HR analytics is an important component of

is an ILT converted for online delivery. This business analytics which uses analytics
includes live sessions or pre-recorded tools for decisions related to employees
sessions. and their effective utilizations.

(ii) e-Learning: A learning system based on It is also referred as workforce analytics or

formalized teaching but with the help of people analytics or talent analytics.
electronic resources is known as e-learning.
➢ Big Data
(iii) Augmented Reality (AR): This Big Data can be defined as data sets whose
technology superimposes digital content size or type is beyond the ability of
into a real-life environment using the traditional relational databases to capture,
device's camera and microphone. manage and process the data with low
(iv) Virtual Reality (VR): In this technology, latency.
users can interact and immerse themselves Characteristics of big data include high
in a simulated environment using a VR volume, high velocity and high variety.
headset.
➢ Benefits of Big Data Analytics
➢ Advantages of e-Learning
• Enables learner to study at his convenient (I) faster, better decision making
time and place at his own pace
(ii) Cost reduction and operational
• Can offer high level interaction with
efficiency
immediate feedback
• Can be simulated to real life situation (iii) Improved data-driven go to market
• Can be cost effective

➢ Disadvantages of e-Learning
• Relatively inflexible depending on a pre-
produced programmer

• Requires greater self-discipline

• May induce a sense of isolation

• Does not permit personal reinforcement