## DU SOL B.Com 3rd Year Human Resource Management Notes Chapter 17 Employee/Labour Welfare

Question 1.
Define labour welfare and describe its scope, functions and advantages.
Meaning, Functions And Advantages Of Labour Welfare:
The term ‘labour welfare’ is one which tends itself to various interpretations and it has not always the same significance in various countries. As pointed out by the Royal Commission on Labour, the term ‘welfare’ is applied to the industrial workers “is one which must necessarily be elastic, bearing a somewhat different interpretation in one country from another, according to the different social custom, the degree of industrialisation and the educational development of workers.”

Therefore, it – is not easy to define the term precisely. Different interpretations are given to the term ‘welfare activities’ by different people. One definition confines it to voluntary efforts on the part of the employers to provide employees the best conditions of employment in their factories.

The other view is that it is anything for the comfort and improvement – intellectual or social – of the employees over and above the wages paid which is not a necessity of the industry not required by law.

According to N.M. Joshi, “Welfare work covers all the efforts which employers make for the benefit of their employees over and above the minimum standards of living working conditions fixed by the Factories Act and over and above the provisions of the social legislations providing against accident, old age, employment and sickness.”

According to Encyclopedia of Social Sciences, “Labour welfare implies the voluntary efforts of the employers to establish within the existing industrial system, working and sometimes living conditions of the employees beyond what is required by law the custom of the industry and condition of the market.”

Hence the term labour welfare does not Comprehend those activities that are necessitated by the laws of country, the traditions and customs of industry in that country, or by conditions of the market. Instead, it means the voluntary action on the part of the employer to improve the lot of his employees.

The International Labour Organisation defines labour welfare in these words : “Workers’ welfare should be understood as meaning such services, facilities and amenities which may be established in, or in the vicinity, undertaking to enable the persons employed in them to perform their work in healthy, congenial surroundings and provided with amenities conducive to good health and high morale.”

In this way, the term ‘labour welfare’ implies schemes and activities that produce conditions that improve the health of the workers as well as those circumstances that improve their morale. It may widely be taken to mean any voluntary action on the part of the employer that benefits the worker in any way.

But it does not include any activity that the employer is compelled or coerced into performing whatever be the benefit according to the labour class. Through the medium of labour welfare work, employers and industrialists try to achieve the integral or complete development of employees.

In short, measures and activities undertaken by the state, employers and association of workers for the improvement of worker’s standards of life and for the promotion of their economic and social well being are called labour welfare work.

Scope of Labour Welfare – Labour welfare includes all services, amenities and facilities which are provided by the employer in or in the vicinity of the undertaking in order to enable the employees to perform their work in healthy and congenial surroundings and provide them with amenities conducive to good health and high morale. According to Dr. Broughton welfare activities can be divided into two classes –
(a) Intra-mural and
(b) Extra mural.

Intra-mural works include

1. Scientific Selection or Appointment – The scientific selection of workers for the various jobs within the factory.
2. industrial Training – Training for different jobs in the factory.
3. Arrangement for light, fresh air and water – This classification comprehends arrangements in the factory for cleanliness, white washing, ventilation, drinking water, bathrooms, lavatories, urinals, light, air . conditioning, etc.
4. Prevention of Accidents – This includes arrangements for i protection from dangerous machines, extreme temperatures, fire fighting, etc.
5. Other functions – Such as canteen, provision or rest rooms, refreshment, etc.
Major extra-mural labour welfare functions are the following:

1. Provision of Education – This includes adult education, social education, primary education, education of men, women and children etc.
2. Arrangement for proper housing accommodation
3. Medical Service -This includes rest, cure, paid leave, free treatment, subsidized medical aid, etc.
4. Provision of inexpensive and nourishing food.
5. Facilities of Recreation – Clubs, gymnasia, cinema, radio, reading- rooms, libraries, etc. In additions to the

above list, the following activities are also a part of labour welfare service:

1. Social insurance scheme,
2. Provident fund benefits,
3. Pension,
4. Sickness and maternity benefits,
5. Arrangement of maternity homes and creches,
6. Provision of cooperative societies,
7. Arrangement Of cultural programmes,
8. Schooling of children.

Aims, Objectives Or Advantages Of Labour Welfare:
Today labour welfare programmes have become very important because whatever is spent, on it, is as good investment by the employer, fie is benefited by increased production or better quality of work. Some . important motives of labour welfare are as follows :

1. To give expression to philanthropic and paternalistic feedings.
2. To win over employees’ loyalty and increase their morale.
3. To combat trade unionism and socialist ideas.
4. To build up stable labour force, to reduce labour turnover and absenteeism.
5. To develop efficiency and productivity among workers.
6. To save oneself from heavy taxes on surplus profits.
7. To earn goodwill and enhance public image.
8. To reduce the threat of further government intervention.
9. To make recruitment more effective (because these benefits add to job sales appeal).

Labour welfare operates to neutralise the harmful effects or large scale industrialisation and urbanisation. Provision of welfare amenities enables the workers to live a richer and more satisfactory life and contributes to their efficiency and productivity. It helps in maintaining industrial peace.

Question 2.
Explain the principles of labour welfare programme.
Principles Of Labour Welfare Programme:
Following are the principles to be followed in setting up a labour welfare programme :

1. The programme should satisfy real needs of the workers – This means that the manager must first determine what the employees’ real needs are. Extreme care and serious research should go into the decision of whether or not to offer a particular employees service.

More evidence is required than a mere unfounded bias of the manager. In one case, a company manager who felt that his employees needed a sports programme budget money, purchased facilities, and hired a company athlectic director. But when the whistle was blown to play ball, nobody wanted to play.

2. The, programme should be such as can be handled best by a group approach – For example, life insurance purchased as a group can be obtained at,a significantly lower price than same insurance purchased by the individual. But it is argued that depending upon the differences in sex, age, marital status, number of children, type of job and the income level of employees there are large differences in their choice of a particular benefit.

As a result, it is Suggested that a package total value of benefits should be determined and the selection of the mix of benefits should be left to the choice of each individual employee. .This is known as the ‘Cafetaria approach’. Such an approach individualises the benefit system though it may be difficult to operate and administer.

3. The employer should not assume a benevolent posture – We have seen in the section on leadership how modern organisations, based on classical principles, foster dependency in employees which is incongruent with the needs of a mature personality. The paternalistic and benevolent approach has fallen in disrepute as a result of the employee’s desire to gain maturity and adulthood.

4. The cost of the programme should be calculated and its financing established oh a sound basis – There are several employee services such as pension, provident fund, insurance, etc., which are not cheap to administer.

The cost of such benefits can hardly be termed a fringe. It is, therefore, essential that before conceding any such service over the collective bargaining table sound actuarial estimates of its cost are made and adequate provisions for financing it are established.

5. The management should ensure co-operation and active participation of unions and workers in formulating and implementing the programme.

6. There should be periodical assessment or evaluation of the programme and necessary timely improvement n the basis of feedback.

Question 3.
“Labour welfare measures are a waste of money because neither their nature nor the extent of their use promote workers’ efficiency.” Express your opinion on this statement.
Significance Of Welfare Activities:
Labour welfare work done by several agencies is not satisfactory. The contribution of employers is also negligible. Employers take it as a sheer waste of money and nothing else. There has been very little real spirit of service. Whatever work is done by them is only in pursuit of their liability under the various legislations. Their arguments for this attitude are as under:

1. Due to their limited financial resources, they cannot set aside adequate funds for welfare work. The negligible amount spent on welfare activities does not find the desired results.
2. Due to overburdened administrative machinery in industries it cannot think of any additional burden for welfare facilities.
3. Immediate and direct benefits from the welfare services will be reaped by employees so employees should come forward and bear a greater part of financial burden.
4. Many- workers look on the welfare work undertaken by the employers with suspicion. They feel that welfare activities are meant to undermine the influence of trade unions.
5. The various measures provided under various Acts are unscientific and unplanned. They are not carried out in their real spirit. The official machinery is not effective to get the provisions of law executed.
6. Welfare activities have no direct and immediate effect on labour’s
efficiency and productivity.
Therefore the amount spent on labour welfare activities is sheer wastage of money.
7. Since the rate of absenteeism and labour turnover is very high in Indian industries. The amount spent on welfare activities could not contribute to the efficiency of workers and it goes waste.

Thus employers think that labour efficiency and productivity is not affected directly with these measures hence they dare not to spend much on these activities. They fulfil only their legal commitments and no more. So, they think of the welfare activities as liability and not an investment. The fact is that the labour welfare activities contribute to the better efficiency and productivity of labour in the long run.

It yields good industrial relations , and promotes.workers morale. Planned and well-organised welfare activities repay the employers in the long run. The labour welfare activities increase the workers’ efficiency indirectly’and in the long run in the following ways:

• Workers real wages are increased by welfare measures which indirectly increases their efficiency. By labour welfare measures their efficiency is increased considerably.
• Workers begin to feel satisfied with their work when they find that they are being well looked after by their employers, Thus their morale is raised and industrial relations improve.
• Labour turnover and absenteeism rates decline because workers find their work place congenial and the employer sympathetic towards them.
• Welfare measures recognise the human values in workers. Therefore, on humanitarian grounds too labour welfare is commendable.
• From social point of view, welfare measures ensure healthier and more enlightened citizens.
• Welfare measures develop psychological and moral values in workers. They help minimising the industrial evils because welfare measures keep them engaged in other social and recrerational activities.
• A sense of responsibility can be developed in workers by giving them proper education.

Thus, we can assert that the labour welfare activities play a very important role in improving their physical and mental health of the workers which may further improve their efficiency and productivity.

In other words, industrial production and profits may go up if proper attention is paid by the Indian industrialists towards the labour welfare activities. The amount spent on these activities should not be considered as a waste of money but should be taken as an investment in labour which would pay the dividend in the long run.

Question 4.
Discuss the reasons why labour welfare work in India assumes greater importance?
Reasons For The Welfare Activities In India:
Following are the important reasons why labour welfare work in India assumes greater importance that in other countries.

1. Lack of strong Trade Union Movement – In India trade union movement is still in its infancy and not strong enough to protect their own interests. In industrialised and developed countries. Workers are strongly organised into trade unions. As the force of strong trade union is missing in our country the welfare of labourers should be efficiently looked after by the employer and the government.

2. Lack of literacy and education. In comparison to other countries, the percentage of educated workers is very low; and consequently they are not in a position to understand their own interests and interests of employer and the society. Hence labour welfare is required more in India than in other countries.

3. Lack of Healthy Recreation – Workers do not have healthy recreation with the result that they indulge in crime and other wrongful activities. Hence it is essential that recreation and entertainment of a healthy kind be provided.

4. Industrial Backwardness – From the viewpoint of industrial backwardness Indian industries are far behind than other countries. Industrial programme is dependent upon the efficiency of labour. Welfare measures motivates the workers and maintains their efficiency and productivity.

5. Problem of Absenteeism and Migration – Compared to workers on other countries the Indian labourer is more restless and tendencious towards frequent migration because life in the town does not provide for his needs, and the atmosphere in general does not suit him. Level of wages is far too low to adequately compensate for the high prices of most commodities.

Hence, the labourers cannot comfortably settle down in one place. This Worker’s migratory tendency can be curbed by providing him with adequate housing improving the conditions in which he is required to work, and other welfare work of a similar nature.

This will help the worker establish a home in the town, and he will not have to run frequently to the village for his family. Hence, the problem of absentees in factory will be reduced. Recreation and cultural facilities will prevent much indulgence in drug addiction and alcoholism, crime and prostitution and other undesirable activity. Even more than this, the precentage of absentees in factories will fall.

Question 5.
Explain in brief the labour activities being done by various agencies in India.
Labour Activities In India:
Before independence, very little was done in the sphere of labour welfare activities either by the Government or employers or by any other agency. But substantial work has been done in this direction since independence. Various agencies have organised welfare activities in India.
These agencies are –

• The Central Government.
• The State Government.
• The Employers. .
• Other agencies.

1. Welfare Activities by the Central Government:
Till Second World War, very little was done by the government of India in this field. During Second War, the Government of India, for the first time, launched Welfare schemes in the war industries to increase productivity of works and to keep their morale high.

The central government has taken special interest in labour welfare activities after the emergence of India as a Welfare State. Since then, various legislations were passed to promote the welfare activities, such as Factories Act 1948, Mines Act 1952, Plantation Labour Act 1951, Coal Mines Labour Welfare Fund Act 1947, Iron ore Mines Labour Welfare Fund Act 1961, etc. Various legislation provided the welfare activities as under:

(a) Factories Act l94\$ – Prior to the Factories Act 1948, minimum standards for. lighting, ventilating, fencing of machineries, control of temperature, safety provisions etc. were present in Factories Acts. New provisions providing for washing facilities, first-aid appliances, canteens, rest rooms, creches etc.

were also made in Factories Act 1948. Under the Act, State Government are authorised to make to associates representatives of workers with the management in regard to the welfare arrangement for work. Provision for the appointment of a Labour Welfare Officer in every factory employing 500 or more workers is also made in the Act.

Provisions for welfare of workers also exist in the Indian Dock Labourer’s Act 1934. The Mines Act 1952, The Plantation Labour Act 1951, The Merchant ‘ Shipping Act 1958, The Motor Transport Workers Act 1961, The Bidi and Cigar Workers, conditions of Employment Act 1966, The Contract Labour (Regulation and Abolition) Act 1970.

(b) Labour Welfare Funds – The Government of India has set up Labour Welfare Funds to finance welfare activities in Governed owned and controlled undertakings excluding Railways and Ports. These funds are contributories in character. Initially, the scheme was for four year but later’ on it was extended with the condition that Welfare Fund Cotnmittees consisting of representatives of employees and government should be formed to administer the Funds.

For the welfare of mine workers, various Welfare Fund Acts were passed for workers engaged in coal, mica, iron-ore, limestone and dolomite mines. The finances for the Funds were raised through the levy of cess on production and export. The welfare activities covered under these Acts are housing, public health, sanitation, medical, education and recreational facilities for workers and their dependents. Acts also cover provisions of accident and other benefits.

(c) Welfare Activities in Railways and Ports – Railways and major ports of Bombay, Calcutta, Cochin, Kandla, Madras, Mormagao, Visakhapattanam and other ports in India have provided various labour welfare activities for their workers. These facilities include well-equipped hospitals and dispensaries, canteen, recreation, education facilities, housing, cooperative societies and fair price shops, etc. Railways provide assistance to their workers out of Staff Benefit Fund in times of emergency.
(d) Other Welfare Activities –

• The Government of India has set up a Central Board for Workers’ Education. It provides grants-in-aid to trade unions and institutions for workers’ education.
• Shram-Vir Award.have been instituted for workers in recognition of meritorious performance.

2. Welfare Activities by State Government:
State governments have also played an important role in providing the welfare activities to labours in their state., States of Maharashtra, Uttar Pradesh and West Bengal are the leading states in organising various welfare activities.

There are Modal Welfare Centres in most of the states. In Maharashtra Bombay Labour Welfare Board organises the labour welfare activities in the state. Welfare funds have also been set up in Maharashtra and U.P. In some states, vocational training is also given to workers. There is a Labour Welfare Advisory Committee in U.P.

3. Welfare Activities by Employers:
At present, the welfare activities are being brought more and more under legislations rather than being left to the good sense of the employers.The Government has made certain facilities obligatory on the part of the employers to be provided to workers, under legislations. The employers have limited resources and moreover, their attitude towards labour is apathetic.

They consider the expenditure on labour welfare activities as waste of money rather than an investment. Even so, some enlightened employers, on their own initiative, have been doing a bit in the direction of welfare. They have provided medical aids, hospital and dispensary facilities, canteens, fair price shops, co-operative societies, recreation, club etc.
These facilities are apart from their liability under various central or state legislations. The Delhi Cloth and General Mills have an Employees Benefit Fund Trust managed by a board of trustees.

This fund is financed by the contribution of a fixed percentage of the amount distributed, unclaimed wages and lines etc. The trust organises several welfare schemes out of this fund such as voluntary health insurance scheme, gratuity and old age pension scheme, the provident fund and daughter’s marriage allowance schemes. It provides financial assistance to workers in emergency.

The welfare facilities provided by employers are not satisfactory. The Labour Investigation Committee has quoted the views of Dr. B.R. Seth who observes, “The vast majority of industrialists in India still regard welfare work as a barren liability rather than a wise investment.”

4. Labour Welfare Activities by Trade Unions:
The welfare work undertaken by the trade union agency are negligible because of lack of organisation and financial stringency. Only a few unions like the Ahmedabad Textile Labour Association, the Mazdoor Sabha of Kanpur, Indore Mill Mazdoor San’gh and Bank Employees Association have devoted themselves to welfare work.

The Ahmedabad Textile Labour’ Association spends nearly 70% of its income on welfare activities. Labour welfare activities generally provided by these trade unions are libraries and reading room, educational institution, including day and night schools, cultural and social centres, gymnasia etc. The Mill Mazdoor Sabha, Indore has started a Labour Welfare Centre which is working in three sections as Bal Mandir, Kanya Mandir and Mahila Mandir.
However, in general, trade unions have not taken much interest in welfare work because of lack of proper leadership and funds.

5. Labour Welfare work by other agencies:
Apart from the agencies closely connected with the industries, (Governments employers and trade unions) several other agencies have also done commendable work in the field of labour welfare. Such agencies are:

(a) Social service agencies – Several social service agencies such as Bombay Social Service League started by the Servants of India. Society and similar leagues in Madras and Bengal, the Shiv Sena Society, the Bombay Presidency Women’s Council, the Maternity and Infant Welfare Association, the Y.M.C.A. the Depressed Classes Mission Society and many other missionary societies play an important role in organising the welfare work, both by helping employers and the labour and by independent efforts.

These agencies have provided various welfare activities, like education, indoor and outdoor – games establishment of co-operative societies, night schools and libraries etc.

(b) Municipalities – A few municipalities and municipal corporations have also taken special welfare measures such as co-operative credit societies, maternities and nursery schools, adult schools, creches, etc. These progressive municipalities are at Bomaby, Calcutta, Delhi, Kanpur, Madras, Ajmer etc.

DU SOL B.Com 3rd Year Human Resource Management Notes

## DU SOL B.Com 3rd Year Human Resource Management Notes Chapter 6 Job Analysis

Question 1.
What is job analysis ? Evaluate its significance in personnel management.
Or
“Job analysis is the process of critically evaluating the operations, duties and relationship of the job.” Elucidate this statement.
Job Analysis – Meaning And Significance:
The first function of personnel management is the employment or select function i.e., to select qualified workers in adequate number. It is concerned with recruiting the right people in the right place at the right time. This function involves two steps: (a) determination of kind or quality of personnel needed and (b) determination of the number of personnel required. The first duty of the personnel department is to find out accurate information about the knowledge, skill and experience etc. that an individual should possess to perform a particular job.

It requires job-analysis. Job-analysis is the process of collecting all facts relating to the nature of a specific job through scientific observation and study. It studies and collects information relating to operation and responsibilities of specific job. Following are some definitions:

According to Terry, “Job analysis is the process of critically examining the components of a job, both separately and in relation to the whole, in order to determine all the conditions and duties. ”
In the words of Flippo, “Job analysis is the process of studying and collecting information relating to the operations and responsibilities of specific job. ”

According to Michael J. Jucius, “Job analysis refers to the process of studying the operations, duties and organisational aspects of jobs in order to device specification, or as they are called by some job specifications. ”

From the above definitions it is clear that job analysis is a process by which job, duties and responsibilities are defined and the information of various factors, relating to jobs are collected and compiled to determine the work and conditions, nature of work, qualities of person to be employed on job, position of the job, opportunities available and authorities and privileges to be given on the job etc.

The mainpurpose ofjob analysis is to describle and define the distinctions among various jobs in the organisation and their relationship. In job analysis following informations are usually collected:

1. Content of a job.
2. Difference in the nature of different jobs.
3. Tasks involved in the job.
4. Equipments and machines required.

Job analysis, thus provides information both for the job and the job holder. The requirements of the job are known as ‘job description’ and the qualities demanded from a job holder are termed as ‘job specifications’. The important contents ofjob description and job specification, products ofjob analysis, are shown in the following figure:

-Job title
– Loãation
– Summary of duties
– Detailed statement of work
to be performed
– Tools, equipment, machines
– Materials used
– Responsibility
– Qualifications required
– Wording conditions
– Hazards
Relation to other jobs.

– Education
– Experience
– Training
– Skill
– Special aptitude
– Initiative
– Responsibilities
– Analysis and judgement ability -Adaptability
– Mental and visual demand
– Emotional characteristics

Significance Of Job-Analysis :

Job analysis is an essential ingredient in designing a sound personnel programme. Job information gathered frOrnjob analysis may be used for following purposes –

1. Organisation and Manpower Planning. Job analysis is helpful in organisational planning, for it defines labour needs in clear terms. It coordinates the activities of the work force and facilitiates the division of work, duties and responsibilities. Thus, it is an essentia! element of manpower planning because it matches jobs with them. ,

2. Recruitment and Selection. Job analysis indicates the specific job ’ requirements of each job i.e. skills and knowledge. In this way, job analysis provides a realistic basis forhiring, training, placement, transfer and promotion of personnel. Basically, the goal of job analysis is to match the job requirements with a worker’s aptitude, abilities and interests.

3. Training and Development. Job analysis determines the levels of standard of job performance. Job analysis provides the necessary information to the management of training and development programmes. It helps to determine the content, and subject matter of training courses. It also helps in checking application information, interviewing, weighing test results and in checking references.

4. Wage and Salary Administration. Job analysis is the foundation for job evaluation. By indicating the qualifications required for doing a specified job and the risks and hazards involved in its performance, it helps in salary and wage administration because it evaluates jobs in terms of money.

5. Performance Appraisal. Job analysis helps in establishing clear cut standards which may be compared with the actual contribution of each
individual.’Job analysis data provide a clearcut performance for every job.

6. Job Re-engineering. Job analysis provides information which enables the management to change jobs in order to permit their being manner by personnel with specific .characteristics and qualifications. This takes two forms – industrial engineering activity and human engineering activity. Industrial engineers may use the job analysis information in designing the job by making the comprehensive study. It helps in time study and motion study and work measurement. Human engineering activities such as physical, mental and psychological are studied with the help of job analysis.

7. Health and Safety. Job analysis provides an oppportunity for identifying hazardous and unhealthy conditions so that corrective measures ’ may be taken to minimise the possibility of accidents and sickness.

8. Placement and orientation. A clear undertaking of job requirements helps in matching these requirements with interest, aptitude and abilities of the manpower placed oh these jobs. The purpose is to assign the job to a person who is best suited to the job. Similarly, the orientation programme should be greased toward shelping the employee learn the activities, tasks and duties which are required to perform the job more effectively and efficiently.

9. Career Planning. Jobs are graded through job analysis and therefore it provide a clear cut picture of opportunities in terms of career paths and job available in the organisation. With the help of such understanding, employees and the organisation both can make efforts for career planning and career development.

Question 2.
‘Explain the process of job-analysis.
Or
How should job-analysis be performed ?
Process Of Job-Analysis
Following steps are undertaken in the process of job-analysis:
1. Collection of Factual Material – Collection of the factual information relating to job in each department is the first step in job analysis process. According to Terry, “the make-up of a job, its relations to other jobs and its requirements for competent performance are essential information needed for a job evaluation.” Two types of information are collected

(a) information regarding job such as its physical environment, its social environment, financial conditions, the purpose for which it is undertaken etc. and

(b) information relating to qualities of persons holding the job. Such information may either be collected by specialists from outside (hired persons) or by members on staff having relevant ability. Whichever choice is made preliminary training is called for. In collecting the data, a number of methods may be used. (For various methods used in collecting data are given in the next question).

2. Developing a Job-Description – The information collected is to be developed in the form of a job description. Job description is a written statement that describes the main features of the jobs as well as the qualifications which the job incumbents must possess.

3. Developing Job Specification – The next step is to convert the job description statements into job specifications. Job specification is a statement of minimum acceptable qualities of a job incumbent. It specifies the standard by which the qualities of the person are measured. Such statement is used in selecting a person matching with the job.

4. Preparation of Report – The job analyst prepares a report mentioning the analysis of various activities on the job and the qualities of the individual to be placed on the job. The report is submitted before the supervisor and the personnel manager for suggestions and comments. The report is revised in the light of the suggestions given by the supervisor or the personnel manager.

5. Approval – The complete report is now submitted to the top executive for approval. The office bearers of the trade unions may also be taken into confidence before approving die report. Any suggestion made by the office bearers of the trade unions may be considered to be incorporated in the report before giving final approval on it. The final report should be approved by the top executive who is responsible for making final decision on the matter.

Question 3.
What are the different methods employed in job analysis ?
Methods Employed In Job Analysis:
Following methods are employed to eollect information for a job analysis –
1. Questionnaire – In this method a detailed questionnaire is prepared – by the job analyst containing question pertaining to the nature of duties, tasks and responsibilities and is distributed among the job incumbents. The job incumbents are asked to provide data about their jobs in their own words. They can easily express themselves in writing. This method is best suited and widely used for analysis. But it is often a very time-consuming process to analyse the data obtained in this manner. It does not yield satisfactory results as many employees do not furnish the correct information or sometimes do not fill the questionnaire.

2. Check list – Questionnaires and checklists though, appear to be similar, differ somewhat in the degree to which they are structured. Questionnaires needs narrative description of the tasks, knowledge, abilities, working conditions hazards etc. involved in the performance of their jobs. On the other hand checklists requires the worker to cheek the tasks he performs from a long list of possible task statements. However in order to prepare the check list extensive preliminary work is required in collecting appropriate task statements. Check lists are easy for the job incumbent to respond to. But they do not provide an integrated picture of the job in question. They are more structured than questionnaires and are mainly of ‘yes’ and ‘no’ variety.

3. Observation – This is the most practical and reliable technique of getting information regarding job. This method can be followed right on the job. The analyst observes the incumbent as he performs his work and asks questions regarding the various jobs performed by him. It is costly and slow method and this also interferes with normal work flow. However, it produces a complete and good job description. This method is particularly desirable where manual operations are prominent and the work cycle is short and repetitive.

4. Interview – In this method a group of representative job incumbents are selected for extensive interview – usually outside ofthe actual job situation. The interview may be carried out either individually or in a group to save time. The replies obtained from the interviewees are then combined into a single job description. This method is very costly and time consuming but it helps in getting a complete picture of the job.

In this method, usually a structured interview form is used and information is collected. In this method, it is important that the interviewer must have considerable knowledge and skill of the jobs.

5. Office Records. Human resource department maintains complete records of each job and the job holders. The analysts collects the required information from the records maintained by the HR development. The method is not frequently used because complete information about work and worker cannot be obtained by this technique as the technique is time consuming.

6. Participation – In this method, the job analyst actually performs the job himself. In this way, he is able to obtain first hand information about the job. This method is fairly good for simple jobs but in case of complex jobs advance training of the analyst becomes necessary. This method is also time consuming and expensive.

7. Technical conferepce – In this method, information about the characteristics of the job is collected from experts – usually the supervisors – and not from the actual job incumbents. Experts may have poor knowledge about the job which they are not actually performing themselves and may give answers based on their past experience.

8. Log-Records. In this method, a diary or log-book is provided to every job holder. The job holder daily records the duties performed and the time taken in performing the job. The analyser then analysis the diary or log records. This method is time consuming. Moreover, the job holders are not disciplined fnough to maintain a regular diary. In addition, the diary provide incomplete information because information concerning. Working conditions, equipment used and supervisory relationship is not available from diary records. This method is useful for jobs where observation is difficult such as engineering job, scientists’ jobs, research man etc.

The job analyst has to decide which of the above methods or combination is needed to do a thorough j ob analysis. He often uses a method which is more specific. Widely used method that incorporates various features of the general techniques a provides a quantitative score.

Question 4.
Explain the meaning of job-description. What are the lontents of job-description ?
Job Description:
Job description is the by-product of the job analysis. The job analyst incorporates the informations relating to job in a prescribed blank called job description blank which contains the findings of the job analysis. Job description is an important document which is basically descriptive in nature and contains a statement of job analysis. It provides both organisational information and functional organisation. It defines the scope of job activities, major responsibilities and positioning of the job in the organisation.

In the words of Edwin B. Flippo, “The first and immediate product of the job analysis is the job description. This document is basically descriptive in nature and constitutes a record of existing and pertinentjob fact.” Pigors and Myres defines the job description as, “a pertinent picture (in writing) of the organisational relationship, responsibilities and specific duties that constitute a given job or position. It defines a scope of responsibility and continuing work assignment that are sufficiently different from those of other job to warrant a specific title.”

Job description is different from performance assessment. The job description concerns such functions as planning, coordinating and assigning responsibility while the performance assessment concerns the quality of peformance itself.Though job description is not assessment, it provides an important basis for establishing assessment standards and objectives.

Contents Of Job-Description :

A job description contains the following data –

1. Job-Identification – Job-identification or organisational position includes the job title, alternative title, department, division, plant and code number of the job. The job title identifies and designates the job properly. The department, division etc. indicate the name of the department where it is v situated. The location gives the name of the place. –

2. Job Summary – Job-summary serves two important purposes. Firstly, it provides a short definition which is useful as an additional identification information. Secondly, it serves as a summary to orient the reader towards an understanding of detailed information which follows. It gives the reader a “quick capsule explanation” of the content of a job usually in one or two sentences.

3. Job Duties and Responsibilities – Job description clearly states the duties and responsibilities to be performed on the job with proper classification as primary, secondary and other duties. It is regarded as the heart of a job., It also describes time to be taken in performing the job and sub-job.

4. Relation to other jobs – This helps to locate the job in the organisation by indicating the job immediately below or above it in the job hierarchy. It also gives an idea of the vertical relationships of work and procedures.

5. Supervision – The degree and nature of supervision required on each job is also mentioned in the job description. Under it is given the number of persons to, be supervise along with other job titles and the extent of supervision involved – general, intermediate or close supervision.

6. Machines, Tools and Materials – The machines, tools and materials required in the performance of each jobs are also includes in the job description. It indicates the nature and complexity of the job and helps devising training programmes.

7. Working Conditions – Job description usually gives us the . information about the environment in which a job holder has to work. They include heat, cold, dust, wetness, moisture, fumes, odour, oily conditions etc.

8. Hazards – This gives us the nature of risks to life and limb, their possibilities of occurrence etc.

Question 5.
Explain the characteristics of a good job-description. How a job Description is prepared and by whom ?
Characteristics Of A Good Job-Description:
A good job description must possess the following characteristics:

1. It should be kept upto date i.e. necessary adjustments should have : been incorporated from time to time.
2. Job title should be short, definite and suggestive as to indicate the nature of the work.
3. Duties and responsibilities should be clearly defined.
4. Job description should give a clear concise and readily understandable picture of the whole job. A new employee should understand the job if he reads the job description.
5. Statements of opinions should be avoided.
6. Job specifications should clearly be mentioned.
7. It should be descriptive but short.
8. Every item should be exactly worded.
9. Job description should clearly mention the job specification.
10. Special work conditions and special qualification of the job should be clearly explained in job description.

Preparing Job Description – Job description is prepared from the informations gathered through the job analysis. In order to prepare the job description, the detailed information is collected about the’job title. Job summary, duties and responsibilities etc’, through any of the technique’s of job analysis and compiled in a well-designed blank in an organised manner. Separate blanks are filled for each job. It is prepared by the job analyst who may be a personnel manager or any executive or supervisor.

Question 6.
What are the uses of job description ?
Uses Of Job Description :
Job description has several uses :

1. Preliminary drafts can be used as a basis for productive group discussion, particularly if the process starts at the executive level.
2. It aids in the development of job specifications which are useful in planning, recruitment, training and hiring people with required skills.
3. It can be used to orient new-employees towards basic responbsibilities and duties.
4. It is a basic document used in developing performance standards.
5. It can be used for job evaluation, a wage and salary administration technique.
6. A job description enables the manager to frame suitable questions to be asked during an interview.
7. A job description becomes a vehicle for organisational change and improvement. It helps top executives in fixing the responsibilities.

Question 7.
Explain job specification and distinguish it from job description.
Job Specification:
Job specification is also the by-product of job analysis. Job
specification takes the job description and answers the question. “What human traits (qualities) and experience are needed to do the job well”? It tells what kind of person to recruit and for what qualities that person should be tested. A job specification is. a statement of the minimum acceptable human qualities necessary to perform a job satisfactorily. According to Flippo “ajob specification is a statement of minimum acceptable human qualities necessary to perform a job properly.” In the words of Dale Yoder “the job specification is a specialised job description emphasising personnel requirement and designed especially to facilitate selection and placement.”

Job specifications translate the job description into terms of the human qualifications which are required for a successful performance of a job. They are intended to serve as a guide in hiring and job evaluation. As a guide in hiring, they deal with such characteristics as are available in an application blank with testing, interviews and checking of references.

Job specifications are developed with the cooperation of the personnel department and various supervisors in the whole organisation. The personnel department coordinates the writing of job descriptions and job-specifications and secures agreement on the qualifications required. These specifications include following –

1. Physical Characteristics which include health, strength, endurance, age-range, body-size, height weight, vision, voice, poise, eye, hand and foot coordination, motor coordination etc.
2. Psychological characteristics which include judgement, resourcefulness, analytical ability, decision-making ability, alertness etc.
3. Personnel characteristics which include pleasing appearance, good manners, leadership, cooperativeness, initiative and drive, mental stability etc.
4. Responsibilities which include supervision of others, sense of responsibility etc.
5. Other features of a demographic nature such as age, sex, education, experience etc.

Distinction Between Job Description And Job-specification:
Both the documents – job description and job specification are the products of the job analysis. But both are not the same; they are different from each other. Job-description is the summary of the duties, responsibilities and other characteristics of the job whereas job specification is a statement of qualities of the persons who handles the job. Former measures the job and the latter measures the person handling the job.

Job specification assists the management in selecting a match for the job while job description assists the job incumbent to understand the requirements of the job which are to be fulfilled by him.

DU SOL B.Com 3rd Year Human Resource Management Notes

## DU SOL B.Com 3rd Year Human Resource Management Notes Chapter 5 Human Resource Planning (Or Manpower Planning)

Question 1.
What is manpower planning ? Discuss its objectives.
Or
What are the objects of human resource planning ?
Human Resource Planning Meaning and Objects :
In order to understand manpower planning, or human resouce planing, we should understand the two terms manpower and planning.

Manpower is the human resources employed in any enterprise, The manpower resource is the most vital factor for the survival and prosperity of a firm. An efficient management will always think of procuring for developing adequate talent for various-positions in the organisation. Planning is the thinking process, the organised foresight, the vision based on facts and experience that is required for intelligent action. Planning means determining what to do, how to do it, when to do it and who is to do it.

Manpower planning may be defined as strategy for the procurement, development, allocation and utilisation of an enterprise’s human resources. One of the functions of human resource management is the procurement of employees in sufficient number. The success of the organisation depends upon the right type of persons placed on the job. It is the responsibility of human resource management to see whether qualified personnel have been placed on the job in sufficient number. This requires planning.

Manpower planning is the planning for manpower resources. Manpower planning ensures adequate supplies, proper quantity and quality, as well as effective utilisation of human resources. Thomas H. Patten defines manpower planning as “the process by which an organisation ensures that it has the right number of people and the right kind of people at the right place at the right time, doing things for which they are economically most useful”.

In the words of Flippo, “An executive manpower planning programme can be defined as an appraisal of an organisation’s ability to perpetuate itself with respect to its management as a determination of measures necessary to provide the essential executive talent.” According to Geisler, “Manpower planning is the process by which a firm ensures tha right number of people and right kind of people at the right place at the right time doing things for which they are economically most useful.”

Thus, manpower planning is the process of developing and determining objective, policies and programmes that will develop, utilize and distribute manpower so as to achieve the goals of the organisation.
The definitions of manpower planning suggest the following features:

1. It aims at ascertaining the manpower needs of the organisation both quantitatively and qualitatively.
2. It includes an inventory of present manpower to determine the status of the present supply of available personnel and to discover developed talent within the organisation. •
3. Manpower planning, like other planning is forward looking or future oriented. If forecasts the needs of future manpower inventory.
4. Manpower planning must focus not only on the people involved but also on the working conditions and relationship in which they work.
5. The basic purpose of the human resource planning is to make optimum utilisation of organisation’s current and future human resources.
6. It is the primary responsibility of the management to ensure effective utilisation of human resources.

Thus manpower planning ensures that the required personnel of required skill are available at the right time. Manpower planning helps in both the selection and developmental activities as it ensures that adequate persons are selected wel I in advance. This would ensure smooth growth of the organisation.

Need Or Objectives Of Manpower Planning :
The following are the main objectives of manpower planning in an organisation –

1. To ensure optimum use of available manpower – In the process of planning, the personnel department takes stock of the present work force and their characteristics. Vacancies should be filled in from among the existing manpower working at the lower level taking into account the characteristics of the persons concerned and the job requirements. Thus available personnel can be employed fruitfully on the job.

2. Forecasting of the future requirements – At the time taking decision for the expansion of the plant, it is necessary to assess the future need of the manpower. The management should also take stock of the present available manpower in the organisation and then it should decide whether the new responsibilities should be given to the existing persons or to the new recruitees who are well qualified in the field. Forecasting thus, helps in filling the right type of job with the right type of man.

If expansion is not planned, changes in the organisation like discharge, retirement, lay-off, retrenchment, demotion, separation etc. all create need of additional workers. They cannot be made available at once. This all requires manpower planning so that right type of fnan may be made available at the right time.

3. Cope with charges – Manpower planning enables the enterprise to cope with charges in competitive forces, market, technology, products and government regulations. Such changes often change the job contents, skill demands, number and type of personnel in the organisation. To cope with the changes manpower planning suggests the new training.programmes to enable the existing personnel to share the responsibility of the changed jobs.

4. Help in recruitment and Selection – Sound manpower planning helps in recruitment and selection of right type of man at the right job, at the right time. The personnel department, in the process of planning might come to know what type of person, it is to.be recruited. It may recruit the persons after proper scrutiny. The rate of labour turn over is also reduced by an effective manpower planning.

5. Maintaining Production level – Manpower planning helps in maintaining production level. The labour turn over, absenteeism, illness and level of workers all reduce the strength of the workers. Manpower planning estimates all these hazards before hand and maintains the production level by arranging for the shortfall in the existing manpower. Two types of analysis are important in this connection – work load analysis and work force analysis.

6. Effective Employee development programme – An effective employee development programme cannot be worked out unless it is linked with the manpower .requirement of the organisation while developing a development programme, the talent, abilities and motives of the individuals as well as of the organisation should be taken into consideration. An effective manpower planning also aims at making the employee development programme effective.

7. Other objectives – Other objectives of manpower planning may be – (a) establishing good industrial relations, (b) reduction in labour costs, (c) coping with the national policy on employment, (d) linking human resource planing with organisation planning (e) identifying areas of surplus personnel so that corrective measures may be taken in time, (f) meeting needs of expansion and diversification.

Question 2.
Explain the importance of manpower planning.
Importance Of Human Resource Planning:
The sound personnel policy requires that there should be adequate number of persons of the right type tp attain its objectives. Personnel objectives cannot be achieved without proper manpower planning. The importance of manpower planning can be judged from the following benefits:

1. Increase in the size of Business – Manpower planning is very helpful when there is expansion of the plant. At the time of taking the decision for expansion of the plant, a large number of workers are required to be recruited. For this purpose a stock of the existing manpower should be taken and future need of the personnel should be assessed. It is very essential to know whether presonnel are to be recruited from outside or from inside and how the training facilities are to be arranged. For all this manpower planning is essential.

2. Effective recruitment and selection policy – Manpower planning helps in formulating effective recruitment and selection policy. Manpower planning is concerned with the right type of people from all sources to meet planned requirements. Manpower planning anticipates manpower needs to develop the existing manpower to fill the future gaps. Thus only right man on the right job at the right time may be recruited and selected.

3. Effective employee development programme – Manpower planning reveals the training needs of the working manpower with the result that training and development programmes become more effective. No effective employee development programme can be worked out unless it is linked with the manpower requirements of the organisation.

4. Reduction in labour cost – Manpower planning ensures recruitment and maintenance of better developed manpower resource which results in reduced manpowers costs. Forecasting of long term manpower needs to help the management to forecast the compensation costs involved.

5. Efficient work force – Manpower planning ensures on the one hand, development of personnel at work and on the other hand, high morale of the personnel. Manpower planning motivates the existing employees and creates favourable psychological climate for motivation. Management succession gets the best contribution from the workers.

6. Avoiding disruption in production – Manpower planning may v help the organisation in procuring the skilled and qualified workers because future needs of personnel may be estimated and they are selected and trained on the basis of a well developed selection and training policy thus ensuring j uninterrupted production.

7. Good Industrial Relations – Manpower planning helps the management in developing the good industrial relations. With the help of manpower planning management may plan to absorb the redundant workers to some new jobs after training in case redundancies of workers are caused by automation or any other reason.

8. National policy on employment – National policy on employment does not allow any employer to oust the worker once employed by the organisation. It is very essential to recruit the workers carefully according to the needs of the enterprise. Only manpower planning can help the organisation in this regard. ’

9. Replacement of Employees, Employees who retire, die, resign and ‘ become incapacitated need immediate replacements, to avoid disruption in production. Provision for replacement of personnel can be made only on the basis of human resource planing.

10. Technological Progress. Human resource planning is helpful in effective utilisation of technological progress. To meet the challenges of pew technology, existing employers are to be retrained or new employees are to be recruited. ,

Question 3.
What are the prerequisites for manpower planning ?
Prerequisites For Manpower Planning:
The implementation and development of manpower planning need following prerequisites:

1. Goals or Objectives of Business – Every business enterprise has some goals or objectives. The manpower planning must be integrated with business policies as regards to profitability, production, sales and development of resources. Any change in business objectives would certainly affect the manpower planning. For example a company decides to introduce computer system in the interprise. This change will affect the manpower planning i.e., company will have to recruit computer operators or it will train its existing employees in computer science. Thus, determination of business objectives clearly in advance is a prerequisite for the effective manpower planning.

2. Support of Top-level management – Manpower planning must have the initiative and support of top level management. Personnel manager of a staff authority can only advise or guide the top management, he cannot implement decisions. Action on decisions or suggestions of the personnel manager are to be taken only at the initiative of top executives. Thus support of top management is a must for the effective manpower planning.

3. Well organised human resourcedepartment – Manpower planning requires forecasting the requirements and developments of the personnel. For this purpose, there is a need of a well organised human resource department. This department collects, records, analyses, interprets and maintains the facts and figures relating to all the personnels in the organisation.

4. Determination of related personnel policies – Determination of personnel policies regarding promotion, transfer, wages, fringe benefits, training, leaves etc. is a prerequisite for manpower planning. Without these policies manpower planning will be of little use.

5. Responsibility – The responsibility of manpower planning should be assigned to some responsible senior personnel. He should be provided all figures relating to the planning.

6. Fixing Planning Period – Planning is concerned with problem of future. The planning period is divided into short term and long term. Planning period depends on the nature of the business and the social, economic and political environment. Long-term planning is preferable for basic and heavy industries. Consumer goods industries may not resort to long term plans. The other important factors are. rate of population growth education and training facilities, cost of training etc.

7. Manpower standards – In order to avoid the problems of overstaffing and understaffing, the optimum manpower standards should be determined on the basis of prevailing standards in similar organisations, past experiences and work measurement. These factors will reduce the cost of production and ‘will increase the quality of production and will help in preparation of manpower plans.

Question 4.
Explain the process of human resource planning.
Or
Discuss the steps in the process of human resource planning.
Process Of Human Resource Planning:
The process of manpower planning consists of the following steps:

1. Analysing Organisational Objectives and Plans. The first step in the process of human resource planning is to analyse the organisational objectives and plans. The ultimate objective of manpower planning is one of matching employee abilities to enterprise requirements with an emphasis on future instead of present arrangements. Objectives may be short term or long term.

Further, organisational plans concerning technology, production, marketing finance, expansion and diversification should be analysed in order to have idea about the volume of future work activity. The plans may further be analysed into sub-plans and detailed programmes. Future organisation structure and job-design should be made clear and any change in the organisation structure should be examined so as to anticipate the manpower . requirement. A company’s plans are based on economic forecast, company’s sales and expansion forecast, and the labour market forecasts.

2. Preparing Manpower Inventory. The main purpose of human ” resource planning is to avoid the situation of over-staffing and under-staffing and for this purpose, a stock of existing manpower is to be assessed.

Manpower inventory refers to the assessment of the present and the v potential capabilities of present employees qualitatively and quantitatively. It reveals the degree to which these capabilities are employed optimally and helps to identify the gaps that exist or that are likely to arise in the firm’s human resources. Preparation of manpower inventory involves determination of personnel to be inventories, cataloguing of factual background information of each individual, systematic appraisal of each individual and listing the present and potential abilities and aptitudes of each.

3, Forecasting Manpower Needs or Demands. Forecasting of future manpower requirement is the most important part of manpower planning. The forecasting is made on the basis of corporate and functional plans, future activity levels, and future needs for human resources in the organisation. The number of people and the skill levels needed in future depends on production and sales budgets, workload analysis, work-force analysis estimated absenteeism and labour turnover etc. For a given level of operation, certain other factors like technology used, make or buy decision, job contents, behavioural pattern and control system. It is thus necessary to make projection for the new posts to be created and the vacancies arising in current manpower. The forecasting should be qualitatively and quantitatively depending upon business objectives.

The major determinants of future human resource demands are –

• Employment Trends. Trends in companys manpower can be judged by examining the changes in the payroll over the last five years within each group. By this examination, expansion or contraction may be measured.
• Replacement Needs. This need arises due to death, retirement, resignation, and termination of employees. The replacement needs may rebate to specific manpower group e.g. supervisory, clerical skilled etc. This can be assessed on the basis of past experience and future retirement situations.
• Productivity. Improvement in productivity influence the manpower planning. Gains in productivity will decrease the requirement of manpower or vice-versa.
• Absenteeism. The demand for manpower depends upon rate of absenteeism. If it is high steps should be taken to reduce it to the minimum.
• Growth and Expansion. Company’s growth plans and expansion programme should be carefully analysed to judge their impact on human resource requirements in future. Steps must be taken for procuring or developing the talent required.

4. Expected loss of Manpower, From the present stock of manpower, a discount should be given for the likely changes in manpower during the period of planning. Potential losses of human resources may be caused due to death, disability, dismissals, resignations, promotions, transfers, retrenchments, or lay off, terminations, ill health, absenteeism, deputation etc. The study of potential loss of workers should be studied in order to make an estimate of the future needs of the work-force.

5. Estimating Manpower Gaps. A comparison between the existing work-force and the projected work-force or manpower demands should be made to identify the gap between the demand and supply of work-force. It will reveal either surplus or deficit of work-force in future. The deficit suggests the number of persons to be recuited from outside whereas surplus implies redundants to be redeployed or terminated. Similarly, gaps may occur in terms of knowledge, skill and aptitudes. Employees who are dificient qualitatively, can be trained whereas employees with higher skills can be redeployed over other jobs requiring higher skills.

6. Action Planning. Once the manpower gaps are identified, action plans are developed to bridge the gaps. Action plan to meet the surplus manpower may be prepared. The surplus manpower can either be redeployed in other department/units or can be retrenched. However, retrenchment should be made only in consultation with trade unions. People may be persuaded to quit voluntarily through golden hand shake.

Deficit, on the other hand, can be met through recruitment, selection, transfer, promotions and training plans. Realistic plans for the procurement and development of manpower should be made to ensure a continuing supply of trained people to take over jobs as and when they fall vacant, either by promotion or recruitment or through training. In this way, redundancies and shortages of manpower can be avoided in the long run. Necessary modifications in the plans may be made if manpower market situation warrants.

7. Monitoring and Control. Once the action plans are implemented, the human resource jsystem and structure need to be reviewed and regulated periodically. Zero base budgeting may be used to encourage managers to justify their plans. Monitoring and control phase involves allocations and utilisation of human resources over time. Review of manpower plans and programmes reveals the surplus or deficiencies. Corrective actions may be taken immediately to remove the surplus or deficiency. Necessary modification in action plans may be made in the light of changing environment and needs of the organisation. An appraisal of manpower plans serves as a guide in future manpower planning.

Question 5.
Briefly discuss the quantitative and qualitative aspects of human resource planning.
Quantitative And Qualitative Aspects Of Human Resource Planning:
The analysis of manpower planning leads to two broad aspects of the subject viz quantitative aspect and qualitative aspect. The quantitative aspect is concerned with the determination of right number of personnel required for each type of job in the organisation and the qualitative aspect relates to specifying the quality of personnel on each job laying down the educational, professional qualifications, work experience, psychological traits etc. we shall now discuss these two aspects of manpower planning.

Quantitative Aspect of Manpower Planning:  Quantitative aspect of manpower planning relates to forecasting the demand and supply of man-power and fill up the gap if any on the basis of manpower productivity, capacity utilisation and costs to identity needs for improvement in productivity or reduction in costs. For this purpose various action plans are prepared and implemented. Manpower budgets are prepared for setting standards and monitoring the implementation of manpower plans.

A. Demand Forecasting Techniques. Demand forecasting is the pro-cess of estimating the number of personnel required in future taking the cor-porate and functional plans and future activity level of the personnel in the organisation. In a manufacturing concern, the sales budget is translated into a manufacturing plan giving number and types of products to be made in each period. But the human resource requirements for a given level of operations vary depending upon the production technology, process, make or buy decision of the managements, job contents, behaviour patterns and control systems.

There are three basic demand forecasting techniques –

1. Managerial Judgement
2. Statistical Techniques
3. Work study techniques

In many cases, a contribution of the above techniques may be used.

1. Managerial Judgement. Under this technique, the experienced manager at top level estimate the future need of different departments, on the basis of their knowledge of expected future work-loaded and employee efficiency. The top management takes advice of different concerned departments. These forecasts are reviewed and agreed with the departmental managers. This may be known as top-down approach.

Alternatively, a ‘bottom-up’ approach may also be considered. Under this approach like department managers estimate the workload of their re-spective departments and decide the number of people they need in future. ‘They submit the proposals with the top management for approval. Both these techniques may be sometimes combined to get the best results. This is a very simple and time saving method but is not suitable for large concerns because of its subjective character.

2. Statistical Techniques. The most commonly used statistical man-power forecasting techniques in ratio-trend analysis.

(i) Ratio-trend Analysis. Under this method certain ratios (e.g. total output to total number of workers, total sales to total saler person, direct workers made for absenteeism, overtime, idle time, labour turnover etc. The following example illustrates the procedure –

Illustration. Suppose a cement factory aims to produce 50,000 tons of cement during 2007-08. The standard manhours required to produce one tonne of cement are estimated to be 10. On the basis of past experience the factory estimates that on an average, the worker can contribute 2500 hours per year. The total work load and the number of workers required may be estimated as follows –

1. Production budgeted output , – 50,000 tonnes
2. Standard manhours required per tonne – 10 hours
3. Total man hours used for producing 50,000tons (ixii) – 5,00,000 hours
4. Manhours available per worker during the year – 2,500 hours
5. Number of workers required ((iii) / (iv)) – 200 workers

Thus, 200 workers will be needed in 2007-08 to achieve the production
target of 50,000 tonnes of cement. However, this is not a reliable estimate because of a number of factors such as absenteeism, availability of raw materials, power breakdown, strikes, lockout etc,.influence the production schedule and allowance should be given for these factors. Gaps in the existing workforce cannot be considered is the basis of above estimates unless a work force analysis is needs.

(ii) Work force Analysis. All the existing workers are not likely to be available everyday throughout the year. So, an allowance is made for absenteeism. labour turnover, and other contingencies. If we assume that on an average 5 percent of the workforce will remain absent and another 5 percent is lost due to resignation, retirement, deaths, terminations etc. Thus, l0 percent additional workforce should be provided for. In the above illustration 10% of the actual workforce required on the job should be recruited. In this way 220 workers are required during the year. This analysis involves a detailed study of part performance, part behaviour and retirement date of each and every employee. This analysis is called work force analysis.

B. Supply Forecasting Techniques. Supply forecasting measures the quantity of manpower that is likely to be available to fill up the vacant posts. Such sources of labour supply may be within or outside the organisation. The supply analysis covers –

1. Existing manpower resources,
2. Potential losses to existing resources through labour wastage.
3. Potential changes to.existing resources through promotion, transfer etc,
4. Effect of changes in conditions of work and absenteeism.
5. Sources of supply within the organisation.

1. Existing Manpower Resources. The first supply resource analysis is to identify the existing workforce by function, department, occupation, level of skill and states just to identify the resource centres. Consisting of broadly homogeneous groups to make supply forecasts.

Such analysis reveals the number of employees internally available if needed in future having special abilities and skills. It is just to know how many people will be available for promotion internally and where they can be found.

An analysis by age is also important to avoid problems arising from a sudden rush of retirement, a block in promotion aspect or a preponderance of older employees, lengths of service analysis is also important because it will provide evidence of survival rates, which are a necessary tool for use by planners in predicting future resources.

The study of existing ratios between different categories of staff is also important to know the areas where rapid changes are seen and which may result in manpower supply problem.

2. Labour wastage. Labour wastage due to labour leaving the organisation should be analysed in order to forecast future losses and to identify the reasons for leaving the organisation plans should be drawn to replace uncontrollable loses. The following are certain techniques to measure such losses’ –

(i) Labour Turnover Index. The one traditional formula for measuring wastage is labour turnover index which is given below –

$$\frac{\text { No.of leavers in a specified period }}{\text { Average no. of employees during the same period }} \times 100$$

The method is common in use because it is easy to calculate and to understand. The formula can be misleading also. The main objection to the measurement of labour turnover in terms of the figure may be inflated by the high turnover of a relatively small proportion of labour force.

The labour wastage percentage is a suspect if the average number of workers .employed upon which this percentage is based, is unrepresentative of recent trends because of considerable increases or decreases during the period in the number employ.

(ii) Labour stability Index. It is an improvement over the labour turn-over index. Labour stability index is shown as below –
$$\frac{\text { No. with one year’s service or more }}{\text { No. employed within the year }} \times 100$$

The formula shows a tendency of stay workers in the organisation and therefore shows the degree of which there is a continuity of employment.

(iii) Length of service Analysis. The analysis is made to know the av-erage length of service of peopl^ who leave the organisation. This also gives an index of labour turnover. It is also crude and not fair because it only deals with the total number of people who leave the organisation. A more refined analysis would be to calculate such an index for each category of employees and then compare them with previous figures.

(iv) Survival Rate. The survival rate of employees is the proportion of employees recruited within a certain period and who remain with the firm after so many months or years of service. Thus, if the analysis finds that the workers who have completed their apprenticeship time during last 2 years, only 50 percent are with the company, it means the survival rate is 50 percent > and the company has to train 100 workers during the next five years if company requirement is only of 50 workers.

3. Internal Promotions and Transfers. The supply forecast should indicate the number of vacancies that will have to be filled to meet the demand forecast. Vacancies in the organisation arise because people leave the organisation or due to expansion of the organisation. The vacancies are filled up by transfer or promotion within the department/organisation that may produce a chain reaction of replacements. In a large organisation, persistent pattern of promotion and transfer may develop and it may be possible to predict the proportion of employees who are likely to be promoted or moved in future, starting a chain reaction. For this purpose, management succession planning should be worked out in the organisation by reference to known, retirements and transfers.

4. Changing conditions on work and Absenteeism. A study should also.be undertaken to have effect of change in working conditions on work and absenteeism. This may cover factors like change in weekly working hours, overtime policy, length and timing of holidays, retirement policy for employing part timers, and shift system. The effect of absenteeism on future supply of labour should also be studied and trend in absenteeism should be analysed to trace causes and identify possible remedial actions.

5. Sources of Supply. Sources of labour supply internal as well as ex-ternal should also be established. Internal sources include the output from internal training schemes or the management development programmes and the reservoirs of skills and potentials.that exist within the organisation; When developing expansion plans outside sources should also be explored. Thus, insidp and outside availability of labour supply should be used when preparing development plans. If skilled or desirable persons are not available internally or externally, actions may be taken to develop or redevelop training or retraining programme to upgrade the available manpower to meet the company’s needs. There are so many local or national factors which have bearing on the supply of manpower.

Qualitative Aspect of Manpower Planning. Having done the exercise of determining the number of manpower for each job in the organisation, the next step comes to determine the quality of the people required for individual job. The quality of manpower required varies from job to job. Therefore, the quality of employees required for a job can be determined after determining the job requirements. The nature of job would help determining the minimum acceptable qualities of the person to be put up on the job.

The aspect is the qualitative aspect of manpower planning. The process of determining the na ture of the job together with the minimum acceptable qualities on the part of the personnel required for adequate performance of the job is termed as job analysis. To quote Endwin B. Flippo – “Job analysis is the process of studying and collecting information relating to the operation and responsibilities of a specific job. The immediate product of this analysis are job description and job specifications With the help of information obtained through job analysis are job- description and job specification. Job description is a summary of the tasks, duties and responsibilities in a job. Basically, the job description indicates what is done, why it is done and where it is done and briefly how it is done. In other words, it sets performance standards telling what performance, the job demands. The employee must know what is expected and what is below or above standards so that he may perform better.

A job specification on the other hand is a statement of the minimum acceptable quantities (educational qualification, mental abilities, special qualifications and physique etc.) necessary to perform a job properly. It designates the qualities required for acceptable performance. The major use of job specification is to guide in the recruiting and selecting of people to fill jobs.

Question 6.
Discuss the problems in human resource planning. How can these problems be tackled successfully ?
Problems In Or Limitations Of Human Resource Planning:
The problems in the process of human resource planning are as follows –

1. Inaccuracy – Human resource planning forecasts the demand for and supply of manpower during plan period. Forecaste can never be a cent percent projection, Longer the time horizon, greater are the chances of inaccuracy. Inaccuracy may be higher when departmental forecasts are aggregated without critical review or where variables in the environment are ignored.

2. Time and costs involved – Manpower planning is a time consuming and expensive exercise. A good deal of time and costs are involved in data collection and their analysis to make forecasting. Being a costly affair, only large sized firms can resort to manpower planning.

3. Resistance by Employees and Employers – Employees and trade unions feel the manpower planning a futile and useless exercise. They feel that due to large scale unemployment, people will be available as and when required. Moreover they feel that the employer tries to increase their work load through manpower planning. The manpower planning regulates them through productivity bargaining.

Employers also resist manpower planning because they feel that it increases the cost of labour. Managers and Jiuman resource planners do not fully understand the human resource planning process and lack a strong sense of purpose.

4. Inefficient Information System – In most of the Indian industries, the human resource information system is not satisfactory. In the absence of reliable human resource data, it is not possible to develop fully the human resource plans.

5. Uncertainties – There are certain uncertainties or constraints in the way of human resource planning. These are absenteeism, labour turnover seasonal employment, technological changes, and market fluctuations etc. It is therefore, risky to depend upon general estimates of manpower because of the rapid changes in the international and external environment.

6. No Top Management Support – There is lack of support and commitment from the top management. In the absence of support of top management, the human resource experts find it difficult to carry out the manpower plans in their true spirit. Sometimes, it happens that the process is started with great funfare but is not sustained due to lack of support from the top.” In some cases, sophisticated human resource technologies are adopted only because their rivals have introduced them. These may not yield results unless matched with the needs and environment of the particular industry or enterprise.

7. Too much focus on Quantitative Aspect – In some enterprises, too much emphasis is laid on the quantitative aspect of human resource planning to ensure a smooth flow of people in and out of the organisation. This sometimes overlooks the more important aspect i.e. qualitative aspect of manpower planning i.e., the quality of human resource, career planning and development, skill development morale etc.

Thus, limitations of human resource planning arise both from inherent limitations of forecasting and from human weaknesses.

Making Human Resource Planning Effective:
We have just studied various problems faced by, a human resource expert in manpower planning. The following steps may be taken to make the human resource planning effective –

1. Proper Organisation of Human Resource Functions – The human resource planning functions should be well organised. A separate cell, section, division or committee may be constituted within the human resource department to provide adequate focus and to coordinate the planning efforts at various levels.

2. Support from the Top – Top management must support and be committed to the human resource planning. Before starting any human resource planning process, top management must be consulted and its commitment should be ensured. Moreover, the exercise should be carried out within budget allocation. Other restraints should also be considered in detail. It is really useless to formulate plans which cannot be implemented due to financial and other supports from the management.

3. Participation – For the successful human resource planning, active participation of operative executives is required. If possible, trade union support should also be sought. Such participation will help to improve understanding of the process and thereby reduce resistance.

4. Information System – A systematic information system or data base should be developed in order to facilitate the human resource planning.

5. Tailor made – Human resource plans should be balanced with corporate plans of the enterprise. The method and techniques of human resource planning should commensurate with the corporate objectives, strategies and environment.

6. Balanced Focus – The quantity and qualify aspects, should be equally stressed. The stress in filling future vacancies should be to recruit right people to right job or other than to match the existing staff with existing jobs. Promotion of existing staff should be considered carefully.

DU SOL B.Com 3rd Year Human Resource Management Notes

## DU SOL B.Com 3rd Year Human Resource Management Notes Chapter 4 Human Resource Policies

Question 1.
What is human resources policy ? What are its components ?
Or
“A policy is man-made rule or predetermined course of action that is established to guide the performance of work towards the organisation objectives.” Explain.
Human Resource Policy – Meaning And Contents:
A policy may be defined as statement or general understanding which provides as guidance to decision-making to members of an organisation in respect of any course of action. Personnel policies are well defined intentions of the management with respect to manpower management in the organisation. Human resources policies indicate the objectives or the established course of action to establish management’s relationship with the employees of the organisation. Following are some important definitions of human resources policies.

According to Richard P. Calhoon, “Personnel policies constitute guide to action. They furnish the general standards or basis on which decisions are reached. Their genesis lies in an organisation’s values, philosophy, concepts and principles. ”

According to Edwin B. Flippo, “A policy is a man-made rule or predetermined course of action that is established to guide the performance of work towards the organisation. It is a type of standing plan that serves to ’ guide subordinates in the execution of their task. ”

In the words of Haynes and Massie, “Policies include that body of understanding which makes the action of each member of the group in a given set of circumstances more predictable to other members.

According to Koontz and O’Donnell, “Policies are general statements or understanding which guide or channel thinking in decision making of subordinates.

According to Industrial Relations Glossary, “Labour policy is the principle or objective established by a company for the guidance of the management in its relations.

In short, personnel policies are the statement of objectives for the guidance of management in its relations with employees, policies are pre-determined courses of action. They reflect the recognised intentions of the top management and guide to the subordinates in the execution of their task.

Characteristics Of Personnel Policy/ Hr Policy:
Following are characteristics of human resources policies:

• A human resources policy is formulated in the context of organisational objectives.
• A policy may be in writing or it has to be interpreted from the behaviour of organisation members particularly people at the top.
• Policy is formulated through the various steps in the decision¬making process.
• A policy provides guidelines to the members in organisation for choosing a course of action. Thus policy provides freedom in choosing their action.
• Policy formulation is a function of personnel department in consultation with line managers. However, top management has important role in policy-making.
• Policy statement should be positive, clear and easily understood by everyone in the organisation so that what management wants is clear.
• It provides two way communication system between the management and the employees so that the employees are kept informed of the latest developments in the organisation and the employers are aware of the actions and reactions of the employees on particular issue.

Contents Of A Human Resources Policy:
The primary objectives of a personnel policy are to promote the maximum individual development, to develop techniques for maximum use of human resources and to create good industrial relations. Therefore, a human resources policy should contain the principles, techniques and practices which may help the management to fulfil these objectives. The contents of a personnel policy may vary according to the needs of the organisation but following items should be contained in the personnel policy of a large organisation.

• Name of the Company along with development of the company and details regarding management personnel.
• Procedures and techniques of selection including sources of recruitment and methods of recruitment, reservation of seats, qualifications required, basis of selection merit or seniority, probation period etc.
• Working conditions such as working hours, authority levels, channels for promotions, transfer, rules regarding suspension, retirement, holidays, leave, overtime, work, duration of intervals etc.
• Training Programmes i.e., full details regarding planning objectives and methods of training for new and existing employees.
• Procedures for handling grievances – to whom employees should contact and when, where and how.
• Rules and regulations regarding accidents, unfair terminations, discipline and Standing Orders.
• Joint Consultation – its methods and procedures.
• Line of authority relationship and line of communication.
• Collective bargaining – full particular regarding representation in collective bargaining.
• Industrial Relations – details regarding maintenance of industrial relations i.e., notice period for the strikes and lock outs, rules for declaring strikes and lock outs illegal, rules regarding recognition of trade union, discipline and conduct rules, workers participation in management.
• Labour welfare and service activities – such as education, entertainment, canteen facilities, financial assistance, profit sharing, provident fund, compensation for accidents etc.
• Compensation. Method or procedure for fixation of pay. Methods of wage payment, incentive plans-how to implement, non-inonetary rewards etc.

Question 2.
What are the objectives of personnel policy or Human Resource Policy ?
Or
What is the importance (or needs) of Human Resource policies ?
Importance Or Objectives Of Personnel Policy Or Hr Policy:
The management of an enterprise determines its objectives and seeks to achieve them by various types of business activities. Before commencing these activities, the management considers various alternative course of action which may help in achieving the desired objectives and choose the most suitable method to it. The importance of policy lies in systematic approach of determining a course of action to be undertaken in an organisation in future. Policy substitutes thinking for worry. The effectiveness of human resources policies should be measured in the light of their objectives for which they are formulated. The objectives of human resources policies are listed below:

1. Attention on Objectives of the Organisation – Organisations exist to pursue and achieve certain objectives. Personnel policies make these objectives more concrete and tangible by focussing attention on those so that all organisational activities are directed towards these objectives. Thus policies help in providing guidelines for the individuals in the organisation to work on smooth lines.

2. Maximum Individual Development and Satisfaction – Individual development and satisfaction is the primary objective of personnel policies. Personnel policies should ensure an effective cooperation among employees so that better results may be expected. Management should consider social values and employees’ aspirations in formulating personnel policies. A good system comprising monetary incentives and non-monetary incentives is warranted. It will promote cooperation and loyalty.

3. Maximum Use of Resources – Another important objectives of human resources policy is the best maximum use of human resources. Man is the only active factor of production which engages the other factors of production to work. Individual development of employees is advantageous only when they are used in the best possible manner. So, maximum individual development and the maximum use of human resources is the primary objective of the human resources policy. Other factors of production are ineffective without effective moulding of human resources. Human resources are made to work efficiently by personnel policies.

4. Offsetting uncertainty and change – Future is always full of uncertainties and changes. The organisation has to function in various types of uncertainties. Some of the uncertainties and changes can be predicted on the basis of forecast especially in personnel area. Personnel policies foresees the future and makes provisions for uncertainties and changes. For example, strike, lock out, mechanisation, transfer of personnel from one place to another etc. Personnel polieies ensure uniformity in decisions.

5. Good Industrial Relations – Human resources policies help in maintaining good and harmonious industrial relations. Personal policies are developed for creating good human resources relations. Human resources policies facilitate uniformity in decisions and avoids workers’ exploitation through biased decision. Human resources policies make employees aware of the objectives of the organisation and guide the workers in achieving them. So that they can enthusiasticallly and with loyalty.

6. Better Controls – Control involves the measurement of the accomplishment of events against policies and the correction of deviations to assure attainment of objectives according to policies. Personnel policies provide standards against which the accomplishments are evaluated. Thus personnel policies facilitate the function of control.

7. Prompt Decision Making. Carefully defines human resource policis serve as a guide for decision making on routine and repetitive matters. They prevent wastage of time and energy for solving the problems of similar nature.

Question 3.
Describe an ideal human resource policy.
Ideal Human Resource Policy:
There is no rigid standard to prescribe an ideal or a sound human resource policy because it is based on circumstances peculiar to an organisation. However, following are some characteristics of an ideal personnel policy which are universally applicable.

1. Relationship to Objectives – The human resource policy should facilitate the attainment of organisational objectives and plans. Policy should reflect the intention of management.
2. Clarity – The human resource policy should be clear, definite and explicit leaving no scope for misinterpretation. Policy should minimise the number of problems where decisions are based on personal judgement.
3. Written. The policy should be written, A written policy generally becomes more clear and definite and its communication is very easy. Besides, it speeds up administration by reducing repetition to routine and brings consistency in organisation.
4. Consistency – The human resource policy should be consistent i.e., the functions and the activities in the policy must be in agreement. Further, the policies must result in stability over a considerable period of time.
5. Flexibility – A human resource policy should be flexible i.e., policy should be revised from time to time to meet the new situation without disturbing present norms and trends.
6. Communication – A human resource policy should be clearly communicated in the organisation so that individuals who have to take decisions in the framework of the policy statement understand it clearly.
7. Participation of Subordinates – The responsibility of laying down policies though, lies with top management, the lower levels must be consulted and due weightage should be given to their advice.
8. Control – The policy to be effective, must be controlled which requires its periodical review being up-to-date, reflecting organisational objectives and plans in- changing situations, consistency, flexibility and applicability.
9. Acceptability – The policy should be acceptable to all those for whom it has been formulated. It will reduce disputes and help in maintaining discipline in the organisation.
10. Compromise with overall policies – Human resource policy should not be against any other policy of the organisation. Thus, it should be within the framework of overall policy of the organisation.
11. Integration – As all people are different in nature and character, the personnel policy must integrate characteristics of all people at work.- It must take into account the differing capabilities, capacities, interests, aspirations, beliefs and temperament make up of the people.
12. Uniformity – Personnel policy should be uniform throughout the organisation subject to variations according to local conditions.

Thus, personnel .policy must possess the above characteristics but before evolving such a policy. Trade unions and other concerned departmental heads should also be consulted.

Question 4.
How is a personnel policy developed ?
Or
What are the various steps in policy formulation and administration ?
Formulation Of Human Resource Policy:
The development of human resource policies depends upon the day to day problems arising in an organisation and their solutions. The main purpose of formulating the personnel policy is to assist top executives in reaching the decision in a given situation. Following are the principal steps in policy formulations :

1. Initiating the need. If an organisation does not already have an appropriate human resource policy, the human resource manager should feel its need or he should hear of its need. Then he should start thinking about it. He should also convince the chief executive of the need of human resource policy. Such initation may be taken by the staff or trade union.

2. Fact-finding. After the chief executive has approved the idea to formulate a policy, the next step is to collect facts for its formulation. Facts may be gathered from any of the following sources:

• Past practice in the organisation.
• Prevailing practice among the companies in the community and throughout the nation in the same industry.
• The attitudes and philosophy of the top management as well as of middle and lower management.
• Knowledge and experience gained from handling countless personnel problems.

The human resource department should study existing documents survey industry and community practices and interview people within the organisation to collect appropriate information widespread consultations and discussions at this stage prove helpful in implementing the policy.

3. Putting the policy in writing – After gathering all information the personnel department can begin the actual work of formulating the written expression of company personnel policy.

4. Getting Approval. The human resource department will refer the policy draft to top management for approval. The management is to see whether the policy draft truly represents the organisations objectives. If it is satisfied, it will approve the policy with or without any modification.

5. Communicating the policy – The policy once formulated should be communicated throughout the organisation. A real education programme should be set up to teach people how to handle various personnel problems in the light of this newly formulated policy. Special attention should be paid to social customs and values, aspiration of employees, labour legislations etc.

6. Evaluating the Policy – Policies provide the future course of action. There may be situations where organisation is not getting the expected results. This requires modifications in the policies. The top management should have full information on the experience of those who are guided and affected by policies as well as about situational changes. On this basis, top executives decide whether there is a need to reformulate the policy. So, human resource policies should evaluated from time to time and necessary modifications should be incorporated if necessary.

Question 5.
Explain various types of personnel policies.
Types Of Human Resouces Policies :
Policies may be classified as under:
(A) On the basis of Sources of Policy – Following are the types of policies on the basis of sources of policy.

1. Originated policy – Such a policy is usually established formally and deliberately by top management for their subordinate’s action as well as their own action. It is originated in the broad framework of the objectives set and defined by top management.

2. Appealed Policy – Such a policy’ is one that arises from the appeal made by subordinate to his superior for deciding an important case or problem. The need for such policy arise because the particular case or problem has not been covered by earlier policies.

3. Implied Policy – These are the policies which are not formally stated. Policies are inferred from the actions of the superiors. It is not a good policy. In the absence of any written promotion policy, it can be inferred from the way the promotions have been or are being made in the organisations.

4. Imposed Policy – Imposed policy is one that arises from the influence of some outside forces like government, trade unions, trade associations etc.

For example, the policy that nobody below the age of 14 will be employed is adopted due to the compulsion provided in the Factories Act.

(B) On the basis of Scope of Policies – Following are the types of policies on the basis of scope of policies.

1. General Policies – Such policies are formulated at the top. They describe the philosophy of top managers and their acceptance of various theories of work and organisation. They tell everybody about the priorities which the top managers want to be assigned to various factors influencing performance. Such policies are called general because they do not relate to any specific issue in particular.

2. Specific Policies – Specific policies relate to specific issues. Thus, there may be separate specific policies on staffing, compensation, training, collective bargaining. These policies may be formulated by the personnel manager himself although others may also exert a great deal Of influence in shaping them.

(C) Another classification of policy is major and minor policies.

1. Major Policies – Major policies pertain to the overall objectives, procedures and control which affect an organisation as a whole. These policies cover all broad areas in personnel activities. Such policies are generally framed by the top executives or Board of Directors,

2. Minor Policies – Minor policies on the other hand cover relationship in a segment of an organisation. Such policies are generally outgrowth of major policies.

DU SOL B.Com 3rd Year Human Resource Management Notes

## DU SOL B.Com 3rd Year Human Resource Management Notes Chapter 3 Organisational of Personnel Department

Question 2.
“Personnel Administration is a line responsibility but it is also a staff function.” Examine this statement carefully.
Or
Discuss the line and staff functions of Personnel Department in any industrial organisation.
Hrm – A Staff Function
There should be no confusion in the minds of the readers on the meanings of the two terms ‘Line’ and ‘Staff. ‘Line refers to those positions and elements of the organisation which have the responsibility and authority and are accountable for accomplishment of the primary objectives of the enterprise. Staff elements are those which have responsibility and authority for providing advice and service to line in attainment of objectives.’ The responsibility of line is to arrange the actual execution of the work planned by the staff. It is often said that the staff ‘thinks’ while line ‘acts’. Now we shall discuss the place of personnel administration in the organisation.

Personnel Administration is A Staff function :

Personnel administration is essentially a staff function. Like other departments, personnel department provides advice and service to all levels of management in the best possible manner in which they can utilize the services of the personnel working with them to build a competent work force. It assists the line executives in developing personnel policies and procedures by providing necessary advice and services to meet the needs of the organisation in human area. It also interprets the policies, procedures and management thinking to the different levels of management so that they may deal effectively with their subordinates in perspective of the management viewpoint.

Personnel manager in the capacity of staff officer has a power to recommend the action in a given situation but not to enforce it. The power of implementation rests with the line executives. Thus he is ortly a thinker or proposer and not doer.

Human Resource department assists and provides services to other departments in the organisation. It provides information and infrastructure. It renders secretarial and executive support services like securing and scrutinising applications for the recruitment of employees, conducting tests and interviews, arranging orientation and training programmes, It maintains personnel records and conducts personnel research.

Human resource department also monitors and controls the personnel performance. It evaluates personnel performance in the light of personnel policies and procedures and suggests necessary corrective actions wherever desirable. As a controller, its continually reviews the work of line departments concerning accidents, obsenteeism, grievances, labour turnover, disciplinary actions etc. It helps other departments in implementing personnel policies and programmes.

Thus, in short, the human resource department, in staff position, acts as formulator of personnel policies, as adviser, as assistant and as controller.

Personnel Administration Is A Line Responsibility :
Maintenance of good relations with its personnel is a central function in any organisation and so the responsibility of determining the general personnel policies rest with the chief executive of the organisation. No doubt, personnel manager assist, the line executive in formulating and administering the plans and policies for the best use of personnel in the organisation but he has no direct responsibility for formulating that policy. The line executives are primarily responsible for accomplishing a company’s basic objectives hence maintaining and developing good industrial relations are the sole responsibility of line executive.

As because the function is central, chief executive shares the whole responsibility. He cannot wholly delegate this responsibility to someone else. If personnel relations in the organisation are not satisfactory, personnel manager cannot be blamed for the situation because he is only a recommending authority and not the executive head. The authority to implement the suggestion or plan always rests with the line executives, he can very easily/etort that the attitude of chief executive makes good relations impossible. Howsoever good is the personnel policy, if the attitude of the line management at all levels uninstructed or unwarranted or if discipline is inadequate to secure the execution of the policy, the personnel manager can do very little beyond reporting the situation to the chief executive.

From the above discussion it is clear that the functions assigned to personnel manager within or with the organised bodies outisde. The organisation are functions which he can only exercise ‘on behalf of his chief ‘ executive’. He cannot be given, neither can he exercise any direct or personnel authority in these matters. He can only ‘represent’ a policy which is a policy of the chief executive.

One point should also be noted that within personnel department, personnel manager has line authority over all the managers working under him. Within the department itself there may be a Research Manager who performs a staff function (of advising the personnel manager). Thus within the personnel department which performs a staff function when viewed in its relationship with the their departments in the organisation, there can be both line and staff authority.

Question 3.
Describe the characteristics of a good personnel department.
Characteristics of a Good Personnel Department.
Normally, a personnel department enjoys both “line” and “staff’ positions in an organisation. Personnel Manager should follow the following principles in drawing his organisantion :

1. The organisation should be kept as simple as possible so that it can be easily understood by the workers.
2. There should be unity of command i.e., each subordinate should have one superior whose command he has to obey.
3. Responsibility and authority of each supervisor should be clearly defined in writing.
4. Responsibility should always be coupled with corresponding authority.
5. Authority should be delegated as far down the line as possible.
6. Authority can be delegated but responsibility cannot be delegated. The responsibility of higher authority for the acts of its subordinates is absolute.
7. The work of every person in the organisation should be confined as far as possible to the performance of a single leading function.
8. Whenever possible, line functions should be separated from staff functions.
9. The organisation should be flexible, so that it can be adjusted to changing conditions. .
10. Quick and correct flow of informations from top to bottom and vice ] versa, is an important element of good organisation. The organisation should have an effective channel of communication.
11. Although the size of span of supervision depends on a number of factors, it is advisable that the span of supervision should neither be too large nor too small.
12. Organisation structure should be reviewed periodically.

Question 4.
“Unless there is a sound organisation structure a major personnel officer reporting to the president and a continuous coordination of personnel department with the line organisation, the personnel programme of the company does not reach its highest degree of effectiveness.” Comment.
Personnel Programme Of The Company:
An organisation combines and coordinates individual as well as group efforts in an enterprise. An organisation structure is the machine through which management works to accomplish its objectives. An Organisation structure is primarily concerned with the allocation of duties and responsibilities and delegation of authority. It is very essential for the success of the organisation to have an effective formal structural relationship among the various departments and the people and the other resources of the organisation. Such relation can only be maintained, and developed with the cooperation of the people working in the organisation. For this purpose, a programme should be chalked out combining and coordinating the efforts of the persons working in the organisation in the effective manner to produce the desired results. This is possible only when following conditions are satisfied:

1. Sound organisation structure
2. A personnel officer to report, and
3. Continuous coordination of personnel department with the line organisational.

1. Sound Organisation Structure – There are five types of organisation structure viz. line, functional, line and staff, committee and matrix. To achieve the desired results a choice of organisation structure should be made in accordance with the nature and size of the enterprise, defining clearly the structural relationship. [For details, See Question 3]

2. Personnel Officer to Report – The effective working of organisation structure very much depends upon the ability of the personnel officer who is assigned the job to report to the chief executive of the organisation regarding personnel problems and advise him in the matters incidental thereto. The chief executive of the organisation frames or amends the personnel policies on the basis of reports of personnel officer. In case of larger firms, sectional heads of various sections and sub-sections will report to the personnel officer who will pursue the report and then forward it to the chief executive.

3. Coordination of Personnel Department with the Line Organisation – Personnel department is a staff department. Line and staff managers in an interactional and interdependent relationship. Line organisation depends on personnel department for its expert advice and specialised services. In its advisory role, the personnel department have no command or authority over the line. Thus line and personnel department relations are based on mutual cooperation.

But their relations are often characterised more by conflict than cooperation. The major source of this conflict is the difference in their view points and perception. Therefore, it is necessary that coordination – between line executive machinery and personnel department should be maintained to avoid unnecessary conflict and deadlock.

In the light of above discussion, we may. conclude “unless there is sound organisation structure, a major personnel officer reporting to the v president and a continuous coordination of the personnel department with the line organisation the personnel programme of the company does not reach its highest degree of effectiveness.”

Question 5.
What are the qualities and qualifications of a successful personnel executive ?
Qualities Of Personnel Executives:
The main function of personnel executive is to direct men at work
and to get the work done through them to meet the general objectives of the organisation. Therefore he should possess all qualities of a leader. It is difficult to state the qualities of a successful personnel executive. However some of the important qualities in any personnel manager may be listed below;

1. Sense of Vocation – The responsibilities of the job of the personnel : manager are so heavy that they cannot be carried out without some sense of an inner urge. The personnel manager must have faith in humanity and also in the possibility of creating a better social and industrial order.

2. Sense of Social Responsibility – Industry is a part of the society whose success depends upon the effective cooperation of the people working in the industry. Personnel manager is concerned with creating facilities for getting better cooperation from the personnel. The personnel manager must appreciate people of the organisation as social units, social groups and social organisations and must deal with them in the social background of the business.

3. Capacity for Leadership – A personnel manager has a dual role. He advises the management on human problems and exercises leadership in many matters affecting the workers. He should be ready to face opposition and to speak without fear from any level of management and to any group of workers. He should be in a position to convince others about his view points and^to provide leadership in the organisation.

4. Personal Integrity – Personnel Manager must be a man who can be trusted completely so that all people of the organisation may come to him with their worries, anxieties and problems. Even the fellow managers and directors should confide in him, their difficulties. Personnel manager is concerned with human,relation problems more than anybody else in the organisation and should be a man of great integrity.

5. Capacity for Persuasion – This is the intellectual side of leadership. The personnel manager has to persuade his fellow managers of the wisdom of the proposals he makes. Similarly, he has to persuade the personnel to reconcile with the objects of the organisations. The personnel manager should not make any haste in negotiation. He should have the patience to persuade the employees in the desired direction.

6. Dynamic Personality – The personnel manager should possess a dynamic personality with following characteristics:

• Spontaneity of Speech – Readiness and fluency combined a good knowledge of words and their meanings are essential for a personnel manager. People are more at ease before one who quickly says the words of welcome or introduction. Ability to express oneself in accurate terms avoiding misunderstanding.
• Public Speech – Public speech is essential to present his viewpoint before the management and to put the organisation objectives before the workers.
• Facial Expression – Mobility of facial expression is important For a personnel manager because it will help in dealing with the personnel more efficiently.
• Courtesy and Social Awareness – A personnel manager is human relations manager. He has to speak to people of all grades and ranks, trade union leaders, workers’ representatives in committees and the members of the Board of Directors. He should possess a sense of courtesy and social awareness.
• Personal Dignity – A, personnel manager should maintain his dignity. He should be able to mix himself with the people and yet not to be of them. ‘ ‘
• Farsightedness – He should have farsightedness. He must guess the pros and cons of the action of the management.

7. Professional Knowledge – A personnel manager must possess the professional knowledge i.e., knowledge of managing the personnel. The knowledge can be acquired by the study of the subject. He should also make study of psychology, sociology and behavioural science. He should also be familiar with research findings in the field of behavioural science. He should apply such knowledge in managing the personnel.

Question 6.
Describe the role of human resource manager/personnel manager in an organisation;
Role Of Human Resource Manager:
Human Resource manager is an important personality in an organisation. He plays different roles at different times. His role in the organisation may be analysed as follows :

1. As a specialist. Human resource manager is considered to be an expert in the field of human resource management like human resource planning, procurement, placement and development of personnel. As a specialist, he advises the line executives (heads of different functional departments) on matters relating to human resource management. On the basis of his advice line managers perform these functions successfully. As a specialist, his advice or suggestions have some weight.

2. As a source of Information. Being specialist in personnel matters, human resource manager is presumed to have knowledge about labour market, labour laws and other related matters so that he may guide the line executives in the right direction. He provides valuable information about labour market, labour laws and other related matters, to line executives. Such information helps line executives in formulating proper policies and procedures about human resources. He maintains records of all personnel in the organisation and conducts personnel research to provide necessary information.

3. As change Agent. The human resource manager can serve as an internal change agent to initiate necessary improvement in human resource practices. As a consultant, he can provide necessary infrastructure and support for organisational development. He helps in introducing and implementing major institutional changes in the organisation. He should, therefore, be familiar with the changing environment of the organisation.

4. As a Liaison Man. The human resource manager, very often acts as a liaison man in the organisation to serve as a link between different departments/division in the organisation.

5. As a Trouble Shooter. The human resource manager serves as a shock absorber in union-management relations. He is the management’s defence against the union activists. He, thus, acts as a trouble shooter.

6. As a welfare man. The human resource manager acts as a welfare man in the organisation. He looks after the safety, health,.welfare activities in the interest of the work-force.

7. As a Controller. The human resource manager assists the line management in effective implementation of human resource policies and programmes. He evaluates the performance of employees in all departments on the basis of set standards and advises for the correction action. As an arm of the top management, he ensures that the human resource policies and procedures.are being carried out in all the departments successfully.

Thus, the human resource manager plays a variety of roles in an organisation according to needs of the organisation. As a well wisher of the organisation he reminds managers of their moral and social obligations to employees. As a counsellor, he advises on the mental and physical health of the employees. As a mediator, he maintains peace and discipline. He acts as a liaison and communicating link between union and management. He deals with the public as the spokes person of the organisation. He also serves as a problem-shooter.

The human resource manager manages the human resources in the organisation. He is an advisor or controller rather than a decision maker. He is there to assist, advise, counsel and guide to line management in matters relating to labour force.

Question 7.
Describe the evolving status of human resource manager.
Status Of Human Hesource Manager:
The status of human resource manager/personnel manager has changed significantly over the years. In the early stage of industrialisation, he was considered as a second grade officer in the organisation, but now the human resource manager is considered to be a philosopher and a specialist in personnel matters. A brief description of his evolving status is given below:

1. The Policeman. In the beginning of industrialisation, the status of personnel or human resource manager was that of a policeman. The management believed that workers disliked work and need to be directed and controlled. The personnel manager was used as a watchdog to enforce prescribed regulations. He was directed to coerce them to work. The personnel manager was required to maintain discipline and law and order problem in the industry. He acted like a policeman in the industry.

2. The Law Man. With the establishment of Welfare State, a number of labour law’s and regulations were enacted to protect the interests of factory employees. At that time, the employers felt the need of a person w’ho can study and interpret the labour laws to assess their legal obligations, and to represent them before the law enforcing agencies. In the legal battle with workers, the personnel manager advocated the case for management, issued charge sheets and held inquiries against workers.

3. The Liaison Man. With the passage of time, trade unions became powerful and began to agitate for their demands. Employers required a man who can deal and negotiate with employees. The personnel or human resource manager was given that job. He also became a shock absorber and a scapegoat.

4. The Catering, Man. Some enlightened employers began to provide welfare facilities like canteen, creche etc. to workers. The personnel manager , was assigned this additional job in addition to his legal obligation. He began to administor these services also.

5. The Welfare Man. With the passage of the Factories Act, the Government made it obligatory for some specific factories to appoint a welfare officer. The welfare officer is expected to handle labour aspects like recruitment, welfare aspect like housing and industrial relations aspect like collective bargaining. The human resource manager also assigned the job of welfare officer in the factory.

6. The Productive Man. Now, the personnel manager is considered to be a productive man. He is expected to improve productivity of the industry by improving the human force by fulfilling their economic, social and psychological needs and aspirations of employees.
The Status of Personnel Manager has changed from time to time.

DU SOL B.Com 3rd Year Human Resource Management Notes

## DU SOL B.Com 3rd Year Human Resource Management Notes Chapter 18 Social Security

Question 1.
Define social security and explain its types.
Meaning Of Social Security:
Social security means the security, as provided by the society to its members, against the contingencies, they cannot meet out of their small means effectively. Such contingencies imperil the ability of the working men to support himself and his dependents in health and decency. It has been realised after World War II that the state exists for the general wellbeing of the people, it must be the state responsibility to provide social security to its citizens.

International Labour Organaisation has defined the social security as, “that security that society furnishes, through appropriate organisations, against certain risks to which its members are exposed.” These risks are ignorance, want, disease, squalor and unemployment. The man requires freedom from these, contingencies and the provisions against these risks can be labelled as social security measures.

Social security is a very comprehensive term and includes in its schemes of social insurance and social assistance as well as some schemes of commerical insurance. Social insurance scheme protects an individual from falling to the depths of poverty and nursery while social assistance is one of the device according to which benefits are given as a legal right to workers who are eligible for such assistance. Commerical insurance includes all voluntary efforts and covers individual risks only.

Types of Social Security Schemes. In a modem Welfare State comprehensive social security schemes take care of person from “womb to tomb”. These schemes may be of two types:

(a) Social assistance schemes, and
(b) Social insurance schemes.

(a) Principal features of social assistance schemes are as follows:

1. The entire cost of the scheme is met by the State;
2. Assistance is given as of legal right to certain prescribed categories of individuals only;
3. In assessing the person’s need his other incomes and resources are taken into account;
4. Assistance is given to bring the person’s total income to a certain predetermined minimum level.
No account is taken of his previous earnings of customary standard of living.

(b) Principal features of social insurance schemes are as follows:

1. These are financed by contributions made by employers, workers and the State;
2. Surplus funds not needed to pay current benefits are invested to earn further income;
3. A person’s right to receive benefit is directly related to his making regular contributions and not to the assessment of his income or need.

In all countries, the social security schemes include both types of the plans-social,assistance as well as social insurance. In India also, we have both types of security plans.

Question 2.
Explain the need and significance of social security in India.
Need And Significance Of Social Security:
Although social security measures had been introduced in many countries decades ago; in India they were introduced only after the independence of the country, because of the lack of official sympathy and the weakness of trade unions. Thus, the, importance of social security measures in India cannot be exaggerated.

It is well established fact that ours is a poor country and the wages of our workers are so low and so niggardly as to permit anything but a below subsistence standard. In some parts of the country, it is too low to maintain a minimum standard.

Sir William Beveridge has rightly remarked that “the more you are poor, the more you need social security… Really social security is a measure to increase the national welfare.” It is, therefore, an open fact that social security measures are urgently needed to Indian workman.

Indian workman is composed of social evils like disease, unemployment, ignorance, illiteracy, squalor and illiteracy which endanger the safety of their life. They find themselves unable to fight against these contingencies due to their low earnings, high prices, high birth and death rates etc.

The worries for maintaining himself and his dependents ultimately affects the efficiency of the worker to a great extent. The provisions of social security measures may prove to be of great help to the workers in emergencies. Many social evils such as beggary, dishonesty, prostitution etc. take place only in poverty and can be removed through social security schemes.

The object of social security schemes are compensation, maintenance and prevention. Following are the benefits from social security schemes :

1. Medical care.
2. Protection from misery and distress.
3. Unemployment coverage.
4. Moral, social and mental upliftment.
5. Proper nutrition of children.
6. Provision of maternity benefits.

The adequate provision of social benefits for workers is particularly significant in an underdeveloped economy like India, to build a new economic and social order based on sound foundations of justice, liberty, equality and security.

Question 3.
Examine the working of the various social security measures adopted in India since independence.
Working Of The Various Social Security Measures:
Social security measures in India were negligible before the Independence of the country. After Independence several social security measures have been introduced in following respects :

• Compensation in case of industrial accidents and injury.
• Protection against illness.
• Maternity benefits to women workers.
• Provident funds.
• Oldage pensions and gratuity.
• Health insurance.

Some of the important social security measures are given below :

1. Workmen’s Compensation Act, 1923. The Act provides for the compensation to those workmen who sustain personal injuries by accidents arising out of and in the course of their employment. The Act applies to all permanent employees employed in railways, factories, mines, plantations, mechanically propelled vehicles, construction work and certain other hazardous occupations.

The Act does not cover those employees who are in clerical or administrative capacity in armed forces, on casual work. The State Governments are empowered to extend the application of the Act to other classes of persons or diseases also.

The employer is liable to pay, under this act, the compensation in case of personnel injury caused by accident arising out of and in the course of employment. No compensation is, however, payable if the incapacity does not last for more than three days or is caused by the default of the worker, not resulting in death.

Besides bodily injury, compensation is also payable in the case of certain occupational disease as given in Schedule III. The State Governments are empowered to add any other disease to the list of diseases.

The amount of compensation payable depends on the nature of injury and the average monthly wages of the worker concerned. For this purpose, injury has been divided under three categories :

• causing death,
• total or partial permanent disablement, and
• temporary disablement.

The rates of compensation are fixed for all types of injuries according to wage- ranges. No compensation is paid for first three days if the period of disablement does not exceed 28 days.

The Act does not apply to those workers who are covered under the Employees State Insurance Scheme.

2. Employees State Insurance Act, 1948.
In order to provide sickness benefits to workers, the Employees State Insurance Act was passed in 1948. The Act applies to all non-seasonal factories run with power and employing 20 or more persons.

It covers all types of employees – manual, clerical, supervisory and technical – not drawing a salary of more than Rs. 10,000 p.m. (w.e.f. 1.10.2006). The scheme is compulsory and contributory. Compulsory in the sense that all workers covered under the Act must be insured and contributory in the sense that it is financed by the contributions from employees and employers.

The administration of the scheme has been entrusted to an autonomous body called the Employees State Insurance Corporation.

Insurance Corporation – The corporation is managed by a governing body of 40 persons representing the Union and the State Governments, Parliament, employers and employees’ organisations and the medical profession. This body elects a standing committee consisting of 13 members.

A third body called Medical Benefit Council is constituted consisting of 26 members to advise the corporation on matters relating to medical benefits. State wise regional boards have also been constituted.

The scheme is financed by the Employees State Insurance Fund which consists of Contributions from, employers and employees, grants, donations and gifts from Central and State Governments, local authorities or any individual or body. The rate of contribution of employees depends upon its daily wages.

The scheme provides five types of benefits to the insured workers and their dependents. These benefits are :

(i) Medical benefit – An insured person or (where medical benefit has been extended to his family) a member of his family who requires medical treatment is entitled to receive medical benefit free of charge. Such medical benefit may be given either in the form of out-patient treatment or as in patient treatment in a hospital which may be either run by the ESI Corporation or by any other agency.

(ii) Sickness Benefit – An insured worker is entitled for cash payment for 91 days per year during his sickness. The daily rate of sickness benefit is calculated at half of average daily wages. Workers suffering from long term disease, like T.B., leprosy etc., are also entitled to get sickness benefit at 62.5% of the average wage which he would have earned had he been well and at work.

(iii) Maternity Benefit – An insured woman is entitled to receive maternity benefit (which is twice the sickness benefit rate) for all days on which she does not work for remuneration, during a period of 12 weeks Of which not more than 6 weeks shall precede the expected date of confinement. In case of miscarriage, the benefit shall be given for 6 weeks after miscarriage.

(iv) Disablement Benefit – An insured person is entitled to receive disablement benefit for any injury arising out of and in the course of his employment. If the disablement is temporary for not less than 3 days, excluding the day of accident, he is entitled to receive compensation according to the First Schedule of the Act.

If the disablement is permanent – whether total or partial – he is entitled to receive compensation according to the Second Schedule to the Act. Artificial limbs are also provided at the cost of Corporation to those who lose their limbs as a result of employment injury. Spectacles, dentures, pace-makers, etc., are also provided to insured person free of cost, depending upon the nature of the case.

(v) Dependant’s Benefit – If an insured person meets with an accident in the course of his employment and dies as a result thereof, his dependant, i.e., his widow, legitimate (or adopted) sons and legitimate unmarried daughters get pension. The widow gets it throughout her life or till remarriage. The sons get it up to the age of 18 years or until they marry, whichever is earlier.

(vi) Funeral Benefit – The eldest surviving member of the family of a deceased insured person is entitled to receive payment for the expenditure incurred on funeral. However, this amount cannot exceed Rs. 2500. The amount should be claimed within 3 months of the death of the insured person.

3. Maternity Benefits Act – Before Independence, many states passed the Maternity Benefits Acts but there war, only one Central Act in this respect – Mines Maternity Benefits Act 1941. After independence two Central Acts – Employees State Insurance Act 1948 and Plantation Labour Act 1951 – were also passed. With a view ta achieve uniformity, Central Government passed in 1961 the Maternity Benefits Act. The Act applies to all mines, plantations and factories except those covered by the Employees State Insurance Scheme.

The expectant mothers are entitled for 12 weeks leave i.e., 6 weeks up to and including the day of delivery and 6 weeks immediately following that day, if they have put in 100 days service during twelve months preceding the date of expected delivery. A payment of Medical Bonus of Rs. 25/- by the employer if pre-natal and post-natal care is not provided free of charge.

4. CoalminesProvident Fund and Bonus Act 1948 – The Coalmines Provident Fund and Bonus Act was passed in 1948 to make the old age provisions for all coalmine workers. The act was amended in 1950, 1951 and 1965. Under this Act two different schemes, i.e., the Coalmines Provident Fund Scheme and the Coalmines Bonus Scheme are in application and these schemes have been amended several times.

Under the Provident Fund Scheme the employers contribute 8% of their total emolument to the fund and an equal contribution is made by the employees. In June 1963 a provision was made in the scheme whereby the members are allowed to contribute voluntarily up to another 8% of their emoluments.

The scheme is administered by a Board of Trustees, consisting of equal members of representatives of the Government, employers and employees. A Special Reserve Fund was set up to make the payment to outgoing members. A Death Relief Fund has also been set up to ensure a guaranteed minimum payment of Rs. 750 to the dependents off the deceased whose accumulations in the fund are less than the amount at the time of death. The employees Family Pension Scheme 1971 also applies to. coalmine workers.

5. Employees Provident Fund Act 1952 – The Act was passed in 1952 covering factories employing 50 or more workers in 6 major industries, viz., iron and steel, textiles, engineering, cement, paper and cigarettes. By an amendment in 1960, the scheme was extended to all factories of five years standing and with 20 or more workers. An exception has been made for new undertakings, for a period of 3 years.

Establishments employing between 20 and 50 persons are also exempted for 5 years. The scheme is contributory and compulsory. The employees and employers contribute 614% of the total emoluments. The employees may, however, contribute 10% of the basic wages and dearness allowance including cash value of food concessions and retaining allowances payable to the employees. The employers make a matching contribution.

The scheme covers every employee who has completed one year’s continuous service and actually worked for 240 days in that period.

A SPECIAL RESERVE FUND was made for making the payment to outgoing members. A Death Relief Fund has also been set up for affording financial assistance to the nominees of the deceased whose pay does not ‘ exceed Rs. 1000 p.m. at the time of death. The quantum of benefit is the amount by which the amount falls short of Rs. 1250

6. Family Pension Scheme 1971 – This was launched for industrial workers covered by Provident Fund Schemes. Under this scheme, a financial assistance i.e., pension is provided to workers monthly after retirement till he survives and to his widow thereafter till she survives. The scheme is financed by the Central Government and the provident fund. The amount of family pension ranges between 225 p.m to Rs. 750 p.m. depending upon his/
her wages at the time of death.

7. Payment of Gratuity Act 1972 – Under this Act, employees in factories, mines, oil fields, plantation, ports, railways etc. in which 10 or more workers are employed are entitled to gratuity after completing 5 years of service at the rate of 15 days wages for each completed years of service subject to a maximum of 20 months wages or Rs. 3,50,000 whichever is lower. 15 days wages means last drawn wages (including D.A.) divided by 15/26. The Act covers only those employees whose salary does not exceed Rs. 3,500 p.m.

8. Old-Age Pensions Scheme – Various State Governments – U.P., Kerala, Andhra Pradesh, Tamilnadu etc. have introduced a scheme of old-age pension to persons of 60 years of age and are poor and destitute. It is open to all.

9. Compulsory Group Insurance – The scheme was introduced by the Central Government with cooperation of the Life Insurance Corporation and applies to certain groups of workers. The employees and employer both contribute towards the premium.

If the member dies while in service, the claim received by the employer is paid to the heir of the deceased. The U.P. Government has introduced the scheme for teachers, lawyers and police employees. The Government of Haryana has also taken certain steps.

10. Deposit-linked Insurance Scheme 1976 – This scheme was launched on 1st August 1976 for the benefit of employees covered under Employees Provident Fund Scheme, and Coalmines Provident Fund Scheme.

Under this scheme, a legal heir Of the deceased or the nominee under provident fund schemes will get the average amount of balance in the provident fund account of the deceased in three years preceding death or Rs. 35,000 whichever is less. This scheme is financed by the Government and the employers.

11. Employees’Pension Schemes 1995. The scheme was introduced for industrial Workers w.e.f. 19th November 1995. Under the scheme, Pension is payable to a worker on superannuation or retirement at the rate of 50% of pay of the employee has completed 33 years of contributory service.

A minimum 10 years service is required for entitlement to pension. The scheme also provide for the grant of family pension on death of the employer ranging from Rs. 450 to Rs. 2500 per month depending upon the salary and the length of service on the date of death. In addition, children pension at the rate of 25 percent of widow pension is also payable subject to a minimum of Rs. 115 per child for a maximum of two children.

The scheme is financed by diverting the employer’s share of provident fund representing 8.33 p.c. of the monthly wage to the pension fund. In addition the central Government also contributes to the scheme at the rate of 1.15 p.c. of the wage of the employee.

Workers covered under the scheme are those who are contributories . under the, provident fund scheme.

DU SOL B.Com 3rd Year Human Resource Management Notes

## DU SOL B.Com 3rd Year Human Resource Management Notes Chapter 2 Development of Human Resource Management

Question 1.
Discuss the evolution of personnel management skill the industrial revolution in England ?
Or
What are those various stages through vehicle modern personnel management was evolved ?
Evolution Of Personnel Management:
Modem personnel management has emerged through many stages which may be summarized as follows—

1. Industrial Revolution. Industrial revolution during later part of 18th century and earlier part of 19th century had a vital influence on the development of industry and commerce. Industrial revolution brought in revolutionary changes in methods and techniques of industrial production which re-moved the hindrances in production faced by the producers and manufacturers of that time, inventions of Spinning genny in 1764 by James Hargreaves, Water frame in 1779 by Richard Awkright and many other inventions in quick succession such as ‘mule spinner’ by Crompton and Power loom by Cartwrighs. Again the invention of Steam engine enabled to drive the machine by power. Thus, development in machines and methods was linked with power.

The following changes necessitated the emergence of personnel man-agement principles and practices—

1. The industrial revolution gave rise to factory system and mass production.
2. Large number of workers were employed to man the machines.
3. Division of labour and increased specialisation were practised.
4. New class of technical and professional employees was emerged.
5. The work place shifted from residence to factory. The employer lost the personnel touch with the employee.
6. ncreased mechanisation and specialisation made work routine and monotonous.
7. Due to increase in demand for labour, labour was migrated from rural areas to urban areas.
8. Materialism increased.
9. Large number of workers and their adjustment in hew work environment gave rise to many labour problems and therefore, rise to many labour problems & therefore, it became necessary to appoint a specialist to handle new and new labour problems at the work place,
10. Labour was looked upon as commodity that could be purchased and sold freely.
11. The role of the Government was not to interfere in the production system.

2. Trade Unionism. With the rise of factory system, the workers face several problems which were ignored by the employers as there were regarded as commodity at that time. They got lower wages with poor working conditions. The labour started united into trade unions to improve their lot. The basic philosophy was that by collective support they could force the management to redress their grievances.

The weapons used were strikes, slowdowns, walkouts, picketing boycotts and sabotage. The trade union movement influenced the practices of personnel management. Employers adopted grievance handling system, recognition to their collective strength (through collective bargaining), the acceptance of arbitration as a means of resolving conflicts, disciplinary practices, expansion of employees benefit programme and introduction of many other personnel policies giving relief to workers and improving their working conditions.

Because of influence of trade unions, several employers in the USA improved their personnel policies and launched schemes for workers’ participation in management and invested a large sums on welfare activities. Several companies set up personnel departments to look after labour interests.

3. Scientific Management. Introduction of scientific management by F.W. Taylor (Frederick Winslow Taylor) in personnel management brought about many far-reaching changes.

Taylor’s contribution has two dimensions — (a) mechanical and (b) philosophical. On mechanical side, Taylor introduced time and motion studies, standardisation of tools, methods and working conditions, differential piece-rate wage system etc. the philosophical side. We tried to develop the science of management based on scientific investigation and experiment.

To understand the Taylor’s philosophy, the following principles laid down by Taylor should be given due consideration—

1. Replacement of Role of Thumb by developing a true science for each element of man’s work based on scientific investigation.
2. Scientific selection and training of workers through a scientific selection system and training method so as to avoid use of wrong methods of work.
3. Heartly cooperation between labour and management with a view to
change mental attitudes of the workers and management towards each other. Taylor called it Mental Revolution. This is necessary to achieve maximum output. ,,
4. Equal Division of work and Responsibility between workers and management.. The management is responsible for planning and organising tne work whereas, workers are responsible for the execution of work.

Techniques of Scientific Management. Taylor and his associates suggested the following techniques to put his philosophy into action—

2. Work study includes the following studies-
(a) motion study (b) method study, (c) Time study, and (d) Fatigue study
3. Planning the task. Taylor advocated that planning work should be separated from execution work. The management or the planning department should plan what type, quality and quantity a worker should produce.
4. Standardisation of tools, equipments, costing system and other items should there. Everything should be made standarise.
5. Scientific selection and trading programmes and procedures should be developed to have deservingremployees/workers.
6. Differential Piece wage Plan. Taylor suggested two piece rates for work. One lower rate and the other higher rates. Workers who can work at with standard efficiency, they would get higher rate and who fail to meet the standard would be given lower ate. The standard of efficiency is fixed by time and motion study.
7. Specialisation. Taylor advocated a team of eight foreman to control the various aspect of production.

4. Industrials Psychology. Industrial psychology stressed matching of employees skills with the jobs. Hugo Munsterbergs contributed significantly to analysis of jobs in terms of workers mental and emotional requirements and development of testing devices. The psychological study of workers influence the selections placement, testing and training etc.

5. Human Relations Movement. Elton Mayo (a psychologist) and Pritz J. Roethlisberger (a sociologist) of Harvard Graduate school of Business Ad-ministration and William J. Dickson of Western Electric company conducted some experiment (known as Hawthrone experiments) in the field of industrial psychology between 1927 and 1932. Hawthrone Experiments and subsequent research focussed attention on attitudes and feelings of workers and their influence on productions.

These factors are important in improving industrial relations. The role of informal groups and informal leaders was highlighted as they took an important part in setting and enforcing group norms. Workers do not act or react individually but as members of group. The study showed that non-economic rewards and sanctions play a significant role in influencing the behaviours of workers. It was suggested that inter-personal relations should be improved to realise fuller potential of individual and groups.

6. Behavioural Sciences. Research in behavioural sciences like anthro-pology, sociology, psychology has also enriched the field of personnel management/Human resource management. The research in behavioural science stressed how a man behaves in different circumstances/environment as an individual or in groups. Behavioural science era led to the development of new techniques of motivation and leadership e.g. job enrichment, employee participation, two way communication or management by objectives etc. A H. Maslow, Douglas Me Gregore and Fredrick Herzberg, Resis Likart and many other contributed significantly towards behavioural sciences approach.

7. Welfare Aspect. Scope of Personnel management has increase con-siderably with the dawn of welfare era. It is not only concerned with the recruitment, selection and training of personnel in industries, but also manages to develop employee benefits programme and industrial relations systems in industry.

Question 2.
Write an essay on the contribution of industrial psychology to personnel management / Human Resource Management.
Contribution Of Industrial Psychology To Hrm :
Industrial psychology suggests the matching of employee skills with his jobs in the industry. How a person behaves in a particular situation to the subject matter of psychology. Hugo Munsterberg, known as the father of industrial psychology has contributed significantly to analysis of jobs in terms of their mental and emotional requirements and development of testing devices. Advances were made in selection placement, testing, training and research practices. Industrial psychology introduced matching of employees to jobs. Different jobs, therefore, require different skills, and abilities. It emphasised the use of psychology in the field of personnel testing, interviewing, attitude measurement, learning theory, training, monotory study, safety, job analysis, and human engineering.

A number of psychologists such as Poffenberger, Burtt, Hepner and Munsterberg made significant contribution to the field of industrial psychology. He applied psychology to solve the industrial problems in many ways He introduced job analysis in terms of mental and emotional requirements of the job. Motivational and leadership problems really belong to industrial psychology. In USA a number of companies added personnel departments during 1920’s for the first time. Personnel consulting firm began to appear, many colleges, universities and institutes began to offer new courses in industrial psychology and its application to men in jobs. The major areas of specialisation of the personnel managers during 1920’s were selection, placement, training, methods improvements and employer welfare.

Question 3.
Describe the changing concepts of human resource management.
Changing Of Concepts Of Human Resource Management :
The concept of human resource management has developed through various stages as follows—

1. The commodity concept. Before the industrial revolution, the guild system was the beginning of the personnel management. Thus concept emphasised that a worker was nothing more than a commodity which could be purchased and sold easily in the market as and when the management liked.

In this era management adopted hire and fringe policy of labour recruitment. According to the theory, the labour can be procured as cheaply as possible and utilised to the fullest. So, at this stage labour was exploited to the fullest.

2. Machine or Factor of Production Concept. Under this concept, the personnel were considered to be a factor of production just like capital, land ” and machine. It is assumed that if machinery can be made more productive by extremes specialisation, so can the man. Taylor’s scientific management stressed upon proper selection and training of employees so as to maximise, production. The employees were considered as an appendage in the process
of production. This concept was an improvement over commodity concept in so far as the workers gained through better working condition and higher earnings.

3. Paternalistic Concept-  Growth of trade unions and increasing faith in democracy made some employers to assume the role of paternalistic employers. They started assuming fatherly and protective attitude towards workers and started a number of new schemes favouring workers. Such schemes included housing facilities, medical facilities, pension facilities, education and recreational facilities etc. The main purpose of introducing such schemes was to gain employees gratitude and loyalty. In several factories, welfare officer were appointed to provide welfare services to workers.

4. The Humanistic/ Social System Approach. The paternalistic approach died during the great depression of 1930s as the management did not have resources to invest in welfare activities. In 1920s and 1930s industrial psychologists and human relation activities advocated the adoption of social system or humanistic approach in industry. This approach was based on work of psychologists like Mayo and his associates, Argyris Me Gregor and sociologists and gained popularity.

The organisations were considered as social system composed of numerous’ interacting parts. The social approach recognised the employer as human being and so humanly treatment was rec-ommended to them. It emphasised that investment in labour was as beneficial as investment in machinery. If employees is treated properly, their many psychological and social problems would be solved automatically or amicably. The approach recognised that labour cooperation should be sought in the solution of common problems of organisation. It was propounded by the followers of this approach that workers psychological and social needs should be recognised by the employers and therefore, non-economic incentive could also be sued to motivate the employees along with the economic incentive. Human relations were considered as the key to higher productivity, higher morale and satisfaction of workers.

5. Human Resources/Behavioural Science Approach. During 1950s, several studies were conducted analysing the behaviour of human beings at the workplace. This gave birth to the human resource concept which considered workers as human resources who are living entities with distinct needs, aspirations and personality. Because of the efforts of behavioural scientists, motivation leadership, group dynamism organisational climate, organisational conflicts etc. become popular concepts. Efforts were made to integrate the organisational goals with workers aspirations so that the two may be achieved simultaneously. Focus was also shifted towards management practices like two way communication management by objectives, employees centered leadership, quality circles etc. ,

7. The Partnership Concept. The modern view is to view employees as partners in industry workers, participations in management is broadly followed in modern organisation. Several companies have launched stock option plans to retain employees and achieved their commitment to the organization. The employee are treated as a valuable resource and human resource development has became a catchword in the industry circles. Workers representations are being appointed on the Board of directors of many organisations. The emerging trend is aimed at creating a feeling among workers that the organisation belongs to them and they should be loyal to the organisation.

Thus, personnel management began as a record keeping function, later on administration of labour agreements became its main task. Later, the focus was shifted to ccientific aspect. Now, the labour is considered as a resource, an asset and an opportunity.

Question 4.
State the reasons for the growth of personnel management.
Reasons For The Growth Of Personnel Management:
Robert Owen can be regarded as the founder of personnel management. He wrote a book “A New View of Society” where he has emphasised that there is a need for better labour relations and improvement in service conditions during 19th century. There was no radical development due to lack of industrial development during first quarter of 20th century. The emphasis was laid on personnel management because of the various problems arising due to the formation and development of labour unions. During this period thoughts of F.W. Taylor were greatly appreciated. During the second quarter of 20th century Elton Mayo and his’associates initiated human relations in industry through various studies.

After 1950 development of personnel management acquired a new face of professional management. Personnel management is now considered as Science of Human Relations, Human Engineering, Organisation System and Design. Personnel management has now become an intra-disciplinary knowledge where industrial psychology, behavioural science, labour laws etc. have been introduced. This has acquired more dimensions, scope and significance in the personnel management. The rapid growth of Personnel Management is because of following factors.

1. Industrial Revolution. Industrial revolution played a very significant role in the development of industries. Industrial revolution brought in revolutionary changes in the methods and techniques of industrial production.-Workshops manned by individuals turned into mills and factories employing more workers. Steam and power were substituted for the efforts and energy of people. Production processes were simplified by the use of new and new machineries and techniques. With the introduction of developed machineries and techniques, various complex problems emerged. To meet this situation personnel management was emphasised.

2. Experiments in Social Sciences. New experiments and research in social sciences also contributed to the growth of personnel management. Hawthron experiment in the field of psychology influenced the attitudes of the employers to a great extent. Researches in behavioural sciences also con-tributed to the development of personnel management. These experiments developed new techniques of selection and training.

3. Fast changes in technology. With the development of science and technology,’new methods of production were developed. New techniques and processes were developed in the fields of marketing and communication which affected the personnel relations and industrial development. To cope with the problems of industrial development new management principles were developed.

4. Awakening in labour. After World War I, workers began to become united and trade unions emerged. Trade unions expressed the concern of workers about working conditions — levels of wages, stability of employment and status in the society. Political movements, Russian Revolution in 1917, emergence of International Labour Organisation in 1919 also subscribed to the concept of industrial democracy.

5. Attitude of the government. The attitude of the Government towards labour management and business have changed considerably. Government’s participation in the economic areas has increased tremendously. Government comes to the rescue of the workers against the exploitation by employers. The idea of workers’ participation in management has been accepted by all the governments of the world. Governments have enacted various labour laws for the welfare of workers.-The government attitude was one of the factors in development of personnel management.

6. Culture and social changes. Education, population problem and changes in social value of the labour also contributed to the’development of personnel management. Education brought the change in the attitude of labour towards their work. They realised that work is worship and they would have been more benefited, if they had worked hard. They now differentiate between right and wrong. Population problem resulted in the problems of unemployment, wage fixation, migratory character of the labour and labour turnover. These problems resulted in the development of personnel management. Due to expansion of education, large scale production and advanced means of communication increased the social value of labour.

7. Change in the size of Business. With the increased use of machinery and capital large scale production become possible. Division of labour and specilisation functions were developed requiring a large number of workers. In order to get the work done by these people efficiently, the need of personnel management was felt.

8. Change in the attitude of management. Development of scientific management, industrial revolution, awakening of workers, favourable atti-tude of Government towards labour and change in the social value of workers compelled the management to make a change in its attitude towards labour. The workers which were regarded as commodity, or as slave in earlier years, are now regarded as partners in management.

9. Problem of Coordination and Control. Large scale production created the problem of control over the thousands of workers in art enterprise. The need of coordination between personnel objectives, developed methods and techniques and overall objectives of the organisation was realised. The problem of control and coordination gave birth to the personnel management.

10. Changes in the form of business organisation. Iii earlier years, business was carried on under sole proprietorship. With the advent of joint stock companies the size of the business has increased. So new management techniques were developed to cope with personnel.

Question 5.
Trace the evolution and growth of personnel management in India.
Or
Attempt a brief note on the development of personnel management in India.
Development Of Personnel Management In India
The development of personnel management in India ns quite different from the development of personnel management in western countries. In U.K. and U.S.A. personnel management was developed by the efforts of the employers who provided the better labour welfare facilities voluntarily. But in India labour management relations were developed mainly due to the unsatisfactory recruitment systems, labour agitations and statutory provision of the various Acts to improve the working conditions of labour imindustries. The growth of personnel management can be divided into two periods—before independence and after independence.

1. Before Independence. Before independence, nothing commendable was done either on the part of employers or on the part of government for the development of industrial relations. In 1920 few enterprises mainly in cotton textile mills of Ahmedabad an Bombay appointed labour welfare officers to look after the interest of the working people. In 1920 labour unrest was witnessed.

Some employers and the Government took various steps to develop better industrial relations including the recognition of trade unions. But, there was no satisfactory resolution of problems, In 1931, the Royal Commission on Labour recommended the abolition of Jobber system and the appointment of labour officers so that the labour recruitment problems might be reconciled amicably. In 1934, the Bombay Government also made the appointment of labour welfare officers compulsory in every industrial unit having 500 or more workers. On the recommendation of Royal Commission on labour and the provisions of the Bombay Government many mill owners appointed the labour officers to look after recruitment of employee, handle of grievances and administer welfare measures.

2. After Independence. The Government of India did commendable work in this direction in post-independence period. Several labour legislations were enacted such as Industrial Disputes Act 1947, Factories Act 1948, rules laying down the appointment, duties and qualifications of the welfare officer. Now the urgency of appointing welfare officer or personnel officer is being felt even in such industries where there is no legal compulsion to appoint welfare officer. It is so because there is a need of such agency to guide the management in tackling labour problems. But the services of labour welfare officers are not appreciable even now because of their taking a biased view in favour of management.

The Government has also arranged for the training of workers and management personnel in India and started several training centres and institutes for imparting training in industrial relations.

During 1960s the personnel function widened beyond the welfare aspect. Three major areas of practice viz. labour welfare aspect labour aspect, and industrial aspect were emerged as the complimentary parts of the personnel management.

Rapid industrialisations and the opening of public sector during five year plan accelerated the growth of personnel management.

In 1975 the Government took several administrative steps to eradicate the system of bonded labour, to give momentum to the scheme of workers’ participation in management and to extend the scheme of apprenticeship. After that several other measures have been taken by the government for the welfare of the labour. Presently the need of personnel management has been so widely recognised as a specialised function of the management that nearly all the organisations prefer to establish a personnel department to deal with the working force in the enterprise.

During 1990s, the overwhelming role of human factor was realised. Growing awareness about the significance of human side has led to the development of human resource management as distinct discipline.

In spite of all these developments, personnel functions in India has not developed in true sense. Personnel function is still playing an inactive role being surrounded by a web of role ambiguities and paying inadequate attention to self-audit and research. Factors which have impeded the growth and progress of personnel function in India can be summerised as following :

1. Line manager are hostile to labour welfare officers appointed under Factories Act.
2. Due to a large number of industrial relations laws and their legalistic approach, personnel executives have become preoccupied in litigation and they have very little time to attend to several other duties.
3. The job of a personnel officer is still considered by a large number of employers as a fire-fighting function only to head off union troubles.
4. The human relations approach to personnel management has not yet taken a firm foothold in our country due to following socio-cultural conditions.

(i) Highly authoritarian culture which militates against participation and free communication.
(ii) Abundance of cheap labour.
(iii) Weak and unenlightened labour movement. .
(iv) Technological backwardness
(vi) Illiteracy of workers ’
(vii) Poverty

The Personnel management in India can be successful of following conditions are fulfilled-
(i) The functions and duties of personnel officer should be well defined in every organisation. He should not merely be considered as an agent of the to carry out the dictates of the employers. He should work as a link between employers and employees.

(ii) The personnel officer should be given complete freedom to act in the interest of employers and employees. He should handle the grievances and demand of the workers and employers. They should explain the personnel policies to the workers in the right perspective so that proper understanding may result in good industrial relations.

(iii) The personnel manager should be regarded as having rode in ironing out the differences between the employers and employees in day to day working.

(iv) Workers participations in management is being widely emphasised both in public and private sectors. Now a days in all public and private sectors, personnel departments have been setup to attract, maintain and motivate the working force.

DU SOL B.Com 3rd Year Human Resource Management Notes

## DU SOL B.Com 3rd Year Human Resource Management Notes Chapter 19 Emerging Horizons in Human Resource Management

Question 1.
What do you mean by Human Resource Information system ? Discuss its various elements.
Information Technology In HRM
Computers have made possible scientific and industrial advances that could not be imagined some thirty or forty years ago. Todays, computers are used to solve a large number of tedious problems with the aid of present day computers a large number of space programmmes have become a reality.

Today, computers are employed in complex calculations and processing of columinous date. The beneficial aspect of computers includes speed and ac-curacy which are important for solving complex problems in modem world.

The use of computers in industry has increased tremendously. They are used for all industrial functions from purchasing and investory control to preparation of accounts and for all managerial functions-planning, organising, staffing, direction and control. Computers facilitate the installation of effective Human Resource Information System (HRIS) in modem organisation.

Concept of Human Resource Information System.
Human Resource Information System is concerned with the use of computers in collecting, classifying recording and disseminating various information about the human resources in the organisation. HRIS refers to the system of gathering, classifying, processing, recording and dyseminating the information required for efficient and effective management of human resources in the organisation.

It is primarily responsible for attracting, hiring, developing and maintaining the firm’s work force. In any organisation, different decisions are taken at different levels of management hierarchy. Information is needed for taking these decisions and quality of decisions largely depends upon the nature and kind of information provided for taking these decisions.

The electronic age has given us “immense ability to retrieve and analyse data. Therefore, designing of an effective HRIS in vital for the effective working of an organisation around electronic computers in case of big organisation. In order to property assign responsibilities to managers and to computer system, it is important to consider the relative strengths of the two resources.

It is true that human being perceive problems that univeve tedious calculations and highly subjective data. Computers on the other hand solve problem very quickly and accurately, but are of little help in gaining insight to the whys of ill-defined problems. So, a distributions is to be made in deciding under what circumstances, a computer can be of help in solving management problems. Computerisation can be effective because it provides favourable environment for individuals to exercise their best unique abilities. Organisational ability and the development of individual abilities are the keys for the successful performance of any enterprise.

Elements of HRIS or Scope of HRIS
A computerised Human Resource Information System is designed to monitor, control and influence the movement of human beings from the time they join the organisation till the time they leave it. Thus, the scope of computerised HRIS is very vast and it includes information about the following sub-systems—

• Job-analysis and design sub system. Since individuals are employed for various jobs, it is essential to computerised job-related information about every job before and after redesigning.
• Manpower Planning Sub-system. It includes information that could assist human resource mobilisation, career planning, succession plannings and inputs for skill development.
• Recruitment and selection sub-system. It includes advertisement module, applicants, profile, appointment and placement data.
• Training sub-system. It provides, information for designing course material system for need based,training, appraisal of training programme etc.
• Appraisal Sub-system. It consists of information about performance rating which serve as inputs for promotion, transfer, increment, succession, planning and career planning. .
• Payable sub-system. It consists of information concerning wages and salary, wage incentive, wage increment, allowances, perquisite, or fringe benefits, deductions for provident fund etc.
• Maintenance sub-system. It contains data regarding health, safety and welfare of employes.
• Personnel Research sub-system. It is a bank of historic and current data about employees attitudes absenteeism, turnover, etc. which may be used for different types of analysis.
• Personnel Administration sub-system. It is intended to keep personal records of each employee as regards leave, transfer promotion, increment etc.

Integrated Human Resource Information System (HRIS) :
The computerised HRIS virtually integrates the information relating to different sub-system discussed above. It serves as a common date base of information on job, people and organisation variables. Integrated HRIS involves the following elements—

• Automated Analysis Methods. Data on job, people and organisation are gathered by the system through diagnostic questionnaires that query human respondent and analyse the data.
• Decision support. This supports specific HRD decision making. The format is designed to answer specific questions.
• Multiple Application. Various sub-systems of HRIS are so integrated that data generated or used by one segment or sub-system can be accessed and used by other sub-systems also such as data generated and used by selection sub-system may be used for training sub-sys- tern or for compensation sub-system.
• Every Access and user friendliness. The computerised HRIS facilitates easy access to date. Whenever required.

Any person who knows the operation of a computer can retrieve the required information. Application of computers in modern organisation can help in processing organisational date, job data and personnel (people) data. Organisation data include data relating to organisational competitiveness and market, e.g. the life cycle of company its structure and cultures management styles, employee attitudes, work culture, customer satisfaction etc.

Job data include the proposed duties and responsibilities of the person handling the job, performance standard lists to be used on the job, compensable factors and competency requirements. People or personnel data may include demographic information of the employees like age, sex, race etc. work-history, education leave, training and development, history, competency assessment, performance appraisal data and career path data etc. These information in computers may be used by any person who knows the operation of a computer for any purpose, he likes.

Question 2.
What are the functions, objectives and significance of Human Resource Information System ? How will you design HRIS in an organisation ?
Functions, Objectives, Significance And Designing Of HRIS:
Functions of HRIS. There are two main functions of Human Re-source Information System (HRIS) as follows—
1. Data collection and 2. Data management

1. Data collection.
As far as collection of data is concerned i.e., who should collect what data and in what form and how often ? Very much depends upon the objective of the organisation. As because the objectives of the organisation differ front each other, so nature and form of data will vary from organisation to organisation. The manner of data collection will also depend upon the purpose for which data is required. After collection of data, irrelevant data should be removed and the relevant data only should be properly classified and tabulated so that it can be used when needed.

2. Data Management.
A good data management system involves the * following sub-functions—

• Processing operations viz. classifying, analysing, summarising and editing the data.
• Storage of data viz – indexing, coding and filing of information.
• Retrieval of date, whenever required
• Evaluation i.e., judging the relevance and accuracy of the information before its use.
• Dissemination i.e. providing the required data to the concerned personnel, in the right form and right levels. ‘

Data management system should be capable of giving efficient service in term of day to day processing of information. Moreover, the system should not be rigid. It should be subject to change whenever required. The same information may be needed in different forms at different levels and for different purposes. In efficient system should be also to quickly respond to these types of demand from different sources.

Objectives of HRIS
The following are the main purposes of HRIS.

• The main purpose of developing are efficient information system is to supplement corporate planning and central system without it, information system is meaningless.
• It helps in managerial decision making by making the desired information in the right form and at the rights time.
• It is an important tool to effective communication. Upward and downward. A good system should given continuous feedback to the management so that the management may take timely decisions and exercise effective control. Thus, it facilitates control.
• The other aim of HRIS is to improve the corporate image because the communication with outsiders is handled systematically and quickly.
• Data collection and data management should have the minimum and reasonable cost.
• Its aims should be provide necessary security and secrecy for important and/or confidential information. ‘
• To keep the information up-to-date.

Benefits/Significance of HRIS:
A well organised HRIS will lead to the following benefits

1. Integrated view of human resource function
2. Availability of timely and accurate information about human resources engaged in the organisation.
3. Development of performance standards for the human resources.
4. Development of individuals through linkage between performance,
reward and job training.
5. Capability to quickly and effectively create cross-functional teams for problem solving.
6. Design and implementation of training programmes based on knowledge of organisational needs.
7. Economy management of human resource data.

Designing of Human Resource Information System. The steps in designing a Human Resource Information system are as given below—

1. Planning.
The main purpose of HRIS is to provide necessary information for decision making purposes. The design and development of an effective HRIS should start with an analysis of the type of decisions and type of supporting situation in which the managers generally get involved. Stellers and Richard have suggested the following four steps in this regard—

• Defaming and analysing the type of decisions that are made both operational as well as those related to policies within the organisation to keep the organisation going.
• Determining the types of existing policies that influence or put constraints on the ways the decisions are made Or should be made.
• Identifying or isolating the type of data that is relevant and needed for decision making.
• Establishing a mechanism and a set of procedures for fathering such data and appropriately processing this data into useful information.

2. Organising.
At this stage, a Human Resource Information centre should be established. At this centre, all the hardware and software and technical help necessary to gather all information should gathered at one place and then classify and tabulate it to give it the shape of managerial information. This centre will work in coordination with other centres of the enterprise. The information system should be integrated with the overall management control system of the organization.

The system designer has to take the decision in respect of the number of files to be maintained, the equipment to be used for processing of date such as manual electronic or automatic processing, etc., the personnel to be employed for the purpose and the ways of processing and storing the information required on an exceptional basis above all, a cost benefit analysis of the system is essential.

3. Implementation.
While implementing the HRIS the alternatives available in this connection are

• The old information flow may be allowed to continue as it is and the new system may be installed to meet the requirements of the new operation;
• the old system may be scrapped completely and the new system should be supplanted a new;
• phasing the installation of the new system and scrapping the old one.
For putting the HRIS into practice, it is important to appoint new personnel and train them to operate the system.

4. Feed Back.
The regular feedback regarding the actual functioning of the HRIS is a must for the desinger to note and fill up the gap between planning and implementation.
The changes in the environment also need to be incorporated. If the HRI?S is not corrected at this stage of these deviations, it will lead to malfunctioning of the system. Hence, the system should be continuously reviewed in the light of changed that occur in the environment both without and outside the organisation. Necessary steps will have to be taken to modify the system in the wake of these changes.

Question 3.
Discuss the concept of Business Process Re-engineering and examine the role of Human Resource Manager in carrying out Business . process re-engineering in the organistion ?
In this globally completive dynamic environment of modem business, Business Process Re-engineering l?as become very crucial. One of the important task of the human resource manager is to ensure that all the processes in the business are adding value, and if not, they must be obliterated which is basically the philosophy of the Business process Re-engineering. Actually re-engineering means that management should start a fresh discarding everything of the past (except human beings including customers), as if it is free from all bindings, of the past decision.

It is a process of rethinking and redesigning of those processes which create value to the customer and get rid of those which are useless and have value as antiques or which are good for museum. The pioneer of re-engineering, Michael Hammer and James Champy have defined the Business Process Re-engineering as “the fundamental rethinking and radical redesign of business processes to achieve dramatic improvement in critical contemporary measures of performance such as cost, quality, service and speed”.

Nature and objectives of Business Process Re-engineering.
One of the basic assumptions of the Business Process re-engineering is that the traditional way of organising departments and processes around very specialized task (i.e., organising departments in the principle of specialisation) is inherently duplicative, wasteful and unrepensive to the firm’s customers. In BPR, therefore, several jobs are combined into one so that an assembly line process is replaced by generalists who carry out all the tasks of the process themselves.

Thus BPR leads to workers making more decisions. Moreover checks and controls are reduced to the minimum and the more emphasis is an carefully selecting and trading the new generalists who can perform the whole process themselves thus creating new values for the customers. Customers are benefitted in the sense that each customer ends up with a single point of contract with checking on the status of an order.

2. BPR onlynelim9nates unwanted operations from the business process. It does not aim at getting rid of people. Its emphasis is mainly how an organisation is structured. It should not be confused with automation. BPR offers a radical new principles that the new design of work is based not on classical hierarchical arrangement or division of work and specialisation but an end to end processes and creation of new values for customers.

Re-engineering is intended to accomplish four objective as follows

1. Total customer satisfaction. ‘
2. Meeting keen competition or improving competitive advantage.
3. Introducing planned change.

Today customers are well informed, they have knowledge, they are demanding more, they are sophisticated, they know their needs and given written and precise specifications of the product required. Besides they have wider choice and greater range of alternatives. Today competition is not local or gentle, it is global and cut-throat. BPR and strategic planning can help a lot. Lastly change is dizzy or unsteady. What was unthinkable yesterday is routine or usual today.

Some people feel that re-engineering is nothing but restructuring. But it is not so. Restructuring requires a business organisation to decides it core competencies and decide which areas it should continue to operate and diversity and which one it should get out. Once the company decides its core competencies, it can look around to customers and their desires, their expectations, look to its rivals and then put its vision and mission into reality through the involvement of all its employees in reconstruction and re-engineering.

After the announcement of the industrial policy of 1991, which paved way for liberalisation and’globalisation of Indian economy many big companies in India are busy in identifying their core competencies deciding in which business area, they should continue to operate and which sectors they should ‘ get out of and choosing their diversifications synergistically. At the same time, they are seeking alliance with transnationals and even domestic companies.

Apart from diversifications and acquisitions most of the business groups are thinking to operate global. At the same time, they are trying to flatten organistional hierarcies, decentralise decision making. Shap floors are being automated, workers and managers are being trained/retrained to meet higher quality standards so that the company may respond quickly to the changes in the environment.

Now we come to know that restructuring is not the same as re-engineering. Restructuring is one possible outcome of re-engineering. In fact re-engineering ‘ could have many other outcomes such as

• Redefinition of roles and responsibilities;
• organisation wide information system implementation;
• Training for achievement motivation,
• process innovation,
• redesign of process,

Many businessmen in India feel that elimination of existing processes is not possible in one go as it involves a huge cost which a businessman can-not be or and BPR is therefore, a buzz word for MNGs or very big companies.

Cost involved should never be analysed in isolation, instead cost-benefit analysis is a better tool for decision making. If there is going to be a net gain, then they should go for that otherwise they should rethink of elimination of all processes in one go, they should affect the change gradually.

Although, re-engineering a single process may not lead to significant improvement in the overall performance of the company unless.the improvement in that particular process is dramatic. In case, resource is a constraint and the organisation can implement re-engineering in one process only then it should follow the following guidelines ,

• Identify those processes which can be avoided in early stages,
• Give priority to those processes which can make maximum contri-bution to the overall bottom line or towards achieving any specific corporate mission like customer satisfaction or creating niche-makes etc.

Role of Human Resource Manager in BPR. Human Resource Man-ager can play a key rple in the effective implementation of reengineering in the organisation in the following ways-

(i) Creating commitment to Re-engineering.
Implementing re-engineering successfully means winning employees commitment. Even the most brilliant reorganisation and organisational changes can be undermined if the employees are adamant not to accept the change. Therefore winning people’s commitment is the to the success HR manager can play a big role in winning such commitment through HR practices such as value-based hiring, building a sense of community and installing an effective two way communication.

(ii) Team Building.
BPR generally results in reorganizing the workforce from functional departments to process oriented teams such as team of employees for processing credit requests. HR manager can play a key role in building such teams by providing necessary communications between top management and the team open and free flowing.

(iii) Developing Multi-skilled workers.
With re-engineering, jobs generally change from specialised tasks to multi-dimensional generalists work. Each worker in the team is responsible for a broader and more enriched job sharing joint responsibility with their fellow team members for performing all activities of the whole process and not a small piece of it based on specialisation. It means acquiring much broader range of skills from day to day. HR manager can play a key role here for acquiring high potential employees and train them for the successful implementation of BPR.

(iv) Creating Empowers Jobs.
BPR requires creation of empowered jobs to perform a better set of task with relatively less supervisions. Human Resource manager can advise in designing and redesigning the jobs.

(v) Shifting Focus from Activities to Results.
Re-engineering create work of that is measured in terms of results not in terms of activities. It will help the HR managers to reevaluate the compensation system in the organisation. In particular, performance and results should be the primary factors for determining compensation.

Question 4.
What are the causes of failure in Business Process re-engineering ? How can it be made effective ?
Causes Of Failure In BPR And Making It Effective
Causes of Failure in BPR. Business process re-engineering may fail due to the following reasons—

• Lacking focus on business process. _
• Ignoring everything except process redesign.
• Settling for results major or minor.
• Placing prior constraints on the definition of the problem and the scope of re-engineering efforts.
• Allowing existing corporate culture and management attitude to prevent re-engineering from getting started.
• Assigning smearier who does not understand hand to re-engineer the efforts.
• A will not to spend resources devoted to the re-engineering.
• Start re-engineering when the chief executive is about to retire in a very short period. Such a, person has no will or interest in re-engineer the business processes.
• Pulling back the re-engineering process when people resisted the re-engineering changes.
• Failure to make a distinction re-engineering from other improvement programmes.

How TO Make BPR Effective ?
The Business Process re-engineering can be made effective if the fol-lowing conditions are satisfied—

1. Support of Top Management.
BPR must begin from the top without the support of top management, it cannot be implemented. The top management should take imitative in this direction and develop a core team of competent people from different departments and divisions to plant and implement the re-engineering process.

2. Clarity of Purpose.
Before planning and developing a programme, the strategic purpose should be clearly defined so that it may be clear what business we want to be in and how to develop it to have a gain.

3. Choice of Right Processes.
Appropriate business processes should be chosen for re-engineering. Processes should be chosen and three criteria—

• dysfunctional processes,
• processes having maximum impact on customers and processes most susceptible to successful redesign. Dysfunctional processes which are troublesome, if not required in the system or are not in a position to be improved, they should deleted other processes should be improved.

4. Customers Angle.
The main purpose of re-engineering is customer satisfaction, so customer satisfaction should be at the centre. Preconceived notions should be discarded. Staff can be convinced for re-engineering by explaining them the impact of re-engineering on customer satisfaction.

5. Sense of Urgency.
Re-engineering should be implemented on urgent basis. At time frame should be implemented on urgent basis. A time frame should be kept for achieving results through re-engineering.

6. Proper climate.
Environment conducive to change must be created. For this purpose, involvement and participation of maximum people and union support are helpful in overcoming resistance to change.

Question 5.
What is downsizing and why is it needed ? Explain the role of human resource management in downsizing.
Downsizing
Downsizing involves organisational restructuring which results in decreasing the size of the organisation and often results in a flatter organisation structure so as to respond more readily to the pace of environmental changes. It is a kind of restructuring process in which the organisation closes down its non-core activities. In the context of human resource management, downsizing involves elimination of certain jobs with a view to improve work efficiency. Downsizing, as a strategy has been adopted throughout the world to achieve operational economics and increase efficiency to be able to survive and grow in the uncertain environment. As a strategy, the organisation reduces staff which is in excess of its needs. As a result, the firm gets rid of some of its employees.

Why Downsizing ?
Downsizing is resorted to the following reasons.

• Where an organisation suffers from over-staffing due to faulty human resource planning. More often, over-staffing is found in Indian Government offices.
• In some cases, downsizing is adopted due to technological advancement. Such advancement may result in a change in man-machine ratio.
• An organisation may start outsourcing some of its business functions. As a result, people engaged in those functions become surplus.

• Downsizing may create a feeling of insecurity among the employees causing low morale and high stress among employees. They may feel that they are paying the price for mismanagement.
• In this practice, it is also possible that some competent employees have to leave the organisation. This may erode the efficiency of the organisation.
• Implementation of performance improvement practices may be-come difficult because of the feeling of job’ insecurity created by downsizing.

Role Of Human Resource Management In Downsizing
Human Resource Management may implement the downsizing practice successfully in the organisation by adopting the following measures—

• HR personnel must dispel the negative effects of rumours through proper communication and must ensure that individuals are kept fully informed with facts and figures.
• Before adopting the downsizing practice, the HR professionals have to convince trade unions and win their support for downsizing.
• HR personnel must think of the difficulties of laid off employers and must devise programmes to assist them laid off employees when informed about lay off face many uncertainties and difficulties about service pay, retirement benefits, search for alternative job, transition assistance etc. These uncertainties need to be anticipated and taken care of.

Question 6.
What is Voluntary Retirement Scheme (VRS). Explain the main issues involved in VRS. Give merits and demerits of the VRS.
Voluntary Retirement Scheme (VRS)
Liberalisation and globalisation of Indian economy have exposed Indian firms to foreign competition. This has forced them the Indian firms to be efficient and cost effective. They have resorted to downsizing (or right size, as they call it) and say good bye to the surplus staff by offering them ‘golden handshake under the voluntary retirement scheme. Thus, in India downsizing is resorted through voluntary retirement scheme.

Voluntary retirement scheme involves separation of employees—both managerial and operative levels—based on mutual agreement between the organisation and its employees against an agreed compensation between the two parties. It is a voluntary act on the part of the employees to retire under the scheme offered by the employer.
VRS is not need to the Indian corporate sector as it has been practised in the part though at a very low magnitude. It waS only in 1991 when Indian resorted to liberalisation, privatisation and globalisation by opening its economy the world. Liberalisation increased competition almost without an advance notice.

It has forced many organisation to have a relook at their redundant human resources which has been a source of fat wage bills without any corresponding productivity. VRS has been applied as a downsizing strategy to cut the size of the wage bill by offering employes a golden handshake (a recreative compensation to the employees who opted for the scheme. The practice of VRS has been executed in both public and private sectors and in manufacturing and service sectors.

In the initial stage, VRS appeared attractive and many organisations successfully implemented it. But in many other cases attempt remained failed.

Issues Involved
In order to make the VRS successful a number of issues must be tackled effectively. The main issues in VRS are as follows—

1. Need for VRS. First, the organisation, must identify the need for VRS. Is it r ally necessary to offer VRS in the organisation. In case there is surplus manpower in the organisation and management thinks that the surplus staff can be utilised somewhere else within the organisation, VRS is not to be resorted. If the management is of the view that without offering VRS, it cannot get rid of the problem of surplus staff and gat wage bills, VRS is necessary’. The type of employees to be covered in the scheme and those who opt for it need to be identified.

2. Cost benefit Analysis. Before launching a VRS, its implications for the organisation should be carefully examined. Its pros and cons should be considered deeply. VRS is a double edged weapon and not a panacea of all ills of human resource management. If the targeted employees are expected not to opt the scheme, the morale of the employees may go down. Suppose, employees who are supposed to be unemployable elsewhere in the industry do not opt the scheme and the talented staff leave the organisation under VRS, this state of affairs may be prove costly or rather fatal to the organisation because organisations may be left with poor quality staff.

3. Designing the scheme. There are two main issues involved in designing the VRS (i) What is being offered ? and (ii) To whom it is offered ?

4. (i) The first issue relates to compensation offered by the company. The practice differs from Company to company and sector to sector. For example, the private sector Hindustan Lever Limited offered a lumpsum payment of 2.25 times of July 1982 salary multiplied by the remaining years of service plus pension at the rate of 70 p.c. of normal pension counted up to 60 years of age (superannuation age).

In public sector, Department of public enterprises has prescribed three months salary for each completed year of services subject to a maximum of monthly salary multiplied by the number of months left for retirement. Public sectors bank offered 45 day salary for every year completed service or salary for balance period of service, whichever is less.’

(iii) The second question involved in designing VRS is who will be covered by VRS. Logically those employees should be covered by the scheme whose service are required least in future, Seniority vs. ment does not work here. It is a very contentious issue and should be decided very carefully. Unless, the employees to be covered are given specifically in the scheme, the scheme is supposed.to be operative to all the employees.

Qualifying clause may be had in the scheme. U.P. state textile corporation, while wanted to close its operations, offered VRS to all its employees. SAR (Steel Authority of India Limited) prescribed the minimum age limit for different categories of employees such as unskilled workers 40 years, skilled workers 43 years, Junior management, 46 years, and middle management 50 years.

In implementing the scheme success-fully, the management must take the trade union into confidence. Unless the trade union agrees to the pros and cons of the scheme, it is likely to fail. So management must convince the trade union before the implementation of the scheme.

Merits of VRS. The chief merits of VRS are—

1. Lucrative compensation to employees through VRS prevents resentment among workers because the scheme is voluntary.
2. It helps in downsizing the specific division/department.
3. It offers a human route to retrenching excess workforce.
4. It reduces the fate wage bill thus reduces the labour cost in manufacturing.
5. It is likely to benefit those companies which are labour intensive.

Demerits of VRS, The VRS suffers from the following negative points—

1. It creates sense of fear and uncertainties among the employees who stay with the firm.
2. Exist cost may exceed the gain. Talented staff may got out and poor quality staff may stay.
3. Operation of the scheme may spoil the reputation of the company “mainly when it fails to fulfil the objective if the scheme.
4. Where trade unions oppose the scheme suggested by the manage-ment, it is likely to be spoiled.

DU SOL B.Com 3rd Year Human Resource Management Notes

## DU SOL B.Com 3rd Year Human Resource Management Notes Chapter 1 Nature and Scope of Human Resource Management

Question 1.
Define Human Resource Management and explain its nature.
Or
“Human Resource Management is a basic management function to all levels and types of management.” Discuss.
Definitions Of Human Resource Management :
The success or failure of an organisation depends not on materials, machines and equipment but on the efficiency of the personnel who are to put in their best efforts for ar&efficient performance at their job. In the words, of Deyner, “Materials, machines, and even offices themselves can be replaced and any risks involved can be insured against but a good loyal team of workers cannot be replaced so easily. ” To achieve the basic objective of an organisation, efficient and effective use of people at work is essential. Human resource management is the management of people at work. Human Resource/ Personnel management is a function of the general management with the objective of ensuring that every employee makes his fullest contribution to the achievement of the objectives of business.

Human Resource/Personnel management may be defined as the art of procuring, developing and maintaining competent workforce to achieve organisational goals efficiently. Following are the leading definitions of personnel management/Human Resource Management.

According to Daje Yodev, “Personnel management effectively describles the processes of planning and directing the application, development and utilisation of human resources in employment.”

Professor Michael J. Jucius defines, ‘Personnel Management’ is ‘ ‘the field of management which has to do with planning, organising and controlling various operative functions of procuring, developing, maintaining and utilising a labour force, such that the (a) objectives for which the company is established are attained economically and effectively; (b) objective of all levels of personnel are served to the highest possible degree, and (c) objectives of the community are duly considered and served.”

In the words of Ed win B. Flippo, “The personnel function is concerned with the procurement, development, compensation, integration and maintenance of the personnel of an organisation for the purpose of contributing towards the accomplishment of that organisation’s major goals or objectives. Therefore, personnel management is planning, organising, directing and controlling of performance of those operative functions. ”

Prof. E.F.L. Brech defined the term ‘Personnnel Management’ in the following words- “Personnel Management is that part of management progress which is primarily concerned with the human constitution of an organisation. ”

The definition of personnel management, as given by the U.K. Institution of Personnel Management and which has also been adopted by the Indian Institution of Personnel Management runs as follows: “Personnel management is that part of management function which is primarily concerned with the human relationship within the organisation. Its objective is the maintenance of those relationship on a basis which by consideration of the well being of the individual, enables all those engaged in the undertaking to make their maximum, contribution to the effective working of that undertaking.”

Thomas G. Spates defines the term in the following words: “Personnel, Administration is a code of the ways of organising and treating individuals 4 at work, so that they will get the greatest possible realisation of their intrinsic I abilities, thus attaining maximum efficiency of themselves and their group, and thereby giving to the enterprise of which they are a part, its determining Vv competitive advantage and its optimum results.”

It is clear from the above definitions that personnel or Human Resource management is concerned with a careful handling of relationship among the individuals at work.

Nature Or Characteristics Of Human Resource Management :

From the various definitions of Human Resource management, we may list following features of Human Resource management:

1. A Specialised branch of General Management—Human Resource ‘management is a part of the general management and therefore all the principles of management are applicable to this also. Human’Resource management is a central and pervasive subsystem of all organisations.

2. Management of Human Resources — Human resource management is management of personnel i.e., human resources. It includes the functions of employment, training development, welfare and compensation. These functions are usually performed by the Human resource Department in consultation with the officials of other departments.

3. A Pervasive Function — Human resource management is a pervasive function of management. It is performed by all managers at various levels in the organisation. As Fredrick R. Kappel observed, “personnel management is not something you turn over a personnel department staff. Since all decisions in an organisation are made by human beings and are put into operation by human beings, all activities have a human aspect and therefore a personnel aspect.” Human resource management is not a function of Human resource department alone; it is a function of all departments of the organisation.

4. Employees as individual and group — Human resource management is concerned with employees both as individuals and also as a group. It establishes relationship between (a) employer and employees and also between
(b) employees and employees. The term employees includes all types of employees whether at lower level or top level e.g. workmen, craftsmen, operators (lower level), departmental managers (middle level) or general manager or chief executive (top level) etc.

5. Development of employees — Human resource management is concerned with helping employees to develop their potential abilities fully. It considers the development of individuals at work, as an indiviudal and as a member of the group. Personnel policies, are designed in the manner so that intrinsic abilities of the employees may be developed to the best use of the organisation.

6. A technique of thinking — Human resource management is an approach, a point of view, a technique of thinking and a philosophy of management. The whole philosophy of human resource management is that labour is a human being, an humanly treatment should be given to them.

7. Based on principles — Management of work force is a difficult job. Here, the subject matter consists of human beings whose attitudes and behaviour do not conform to any set pattern. Each individual worker has his own attitudes, beliefs, and temperament make up. Personnel/human resource management is based on certain well-defined principles which have been evolved after a great deal of research and experimentation.

8. A never-ending process — Human resource management as a function needs to be performed on a continuous basis. It involves the delicate function of management of human relations. Moreover, it is to be continuously attended to and nurtured like a delicate plant.

9. Science as well as an Art. Human Resource Management (HRM) is a science as it contains an organised body of knowledge consisting of principles and techniques. It is also an art because it involves application of theoretical knowledge into practice to solve the problems of human resources. In fact handling people at work is one of the most creative arts. ‘

10. Staff Function. HRM is a staff function or its function is advisory in nature. It contributes to the success and growth of the organisation by advising the operating departments on personnel matters.

Question 2.
What are the objectives that human resource management seeks to achieve in an organisation ?
Or
“The objective of personnel management, personnel administration or industrial relations in an organisation is to attain maximum individual development, desirable working relationship between employers and employees and effective moulding of human resources as contrasted with physical resources.”—Explain
Objectives Of Human Resource Management:
The main objectives of personnel/human resource management is the accomplishment of the goals of the enterprise. According to Indian Institute of Personnel management, “Personnel/human resource management aims to achieve both efficiency and justice, neither of which can be pursued successfully without the other. It seeks to bring together and develop into an effective organisation. The men and women who make up an enterprise enabling each to make his own best contribution to its success both as an individual and as a member of a working group. It seeks to provide fair terms and conditions of employment and satisfying work for all those employed.” The objectives of personnel management may be summarised as below.

1. Social objectives — An enterprise is a part of the society in which it functions. As such human resource management cannot ignore the need to work for the attainment.of social objectives. Firstly, it should aim at maximising employment opportunities. This objective assumes greater importance in the context of a country faced with the problem of unemployment. Secondly, the jobs to be created should be such that they afford maximum material and mental satisfaction to the people who perform them. Thirdly, it should be ensured that the jobs are so planned that they result in maximum productivity per worker with a minimum of wastage of effort. Lastly, it is the responsibility e, of human resource management to promote healthy and mutually satisfying human relations leading to harmony and cooperative endeavour.

2. Personnel Objectives — Good human resource management implies maximum material and mental satisfaction to each individual employee. This can be done by providing him the following:

• Firstly, worker should be provided with adequate remuneration.
• Secondly, there should be job-security.
• Thirdly, the worker should be given facilities for proper training and development.
• Fourthly, the worker should be provided with increased job satisfaction.
• Fifthly, the workers should be provided the opportunities for advancement.
• Sixthly, the workers should also be provided with proper work environment – a clean and orderly place equipped with all necessary tools and instruments.
• Lastly, a worker should be treated with dignity.

3. Enterprise Objectives- Pursuit of social and individual objectives should hot minimise the importance of enterprise objectives. As a matter of fact, these objectives are closely inter-linked. Thus, to subserve the enterprise objectives, Human resource management should aim at recruiting and retaining competent, loyal and mentally well-adjusted team of workers.

The object of Human resource management should ensure that the , various posts in the enterprise are manned by highly competent and contented workers. Further this should be done at the lowest costs possible. It should also seek to create a sense of belonging among the employees so that when the occasion demands, they are willing to sacrifice their individual interests v for the sake of group interests.

4. Union Objectives—Human resource management has also to deal with labour unions and often there are more than one union in an enterprise. As such it should display fact and consideration in deciding the questions relating to recognition of representative unions, formulation of personnel policies in consultation with them, and creation of an atmosphere where they are obliged to practice self-discipline and cooperate with the management.

Question 3.
Discuss the scope of Human Resource Management.
Scope Of Human Resource Management :
Human Resource management may be taken to mean the task of managing the personnel of an organisation. The subject matter of human resource management is man and therefore all such functions, duties and responsibilities and powers are included in the scope of personnel management which help the management in getting the work done with the help of people. In the early stage of industrialisation, the scope of human resource management was very limited because labour was considered to be the one of the factors of production like land and machinery. But with the advent of science of management scope of human resource management was also increased. Change in the attitude of labour and the management to each other and the development in industrial field have contributed to a great extent in widening the scope of human resource management. The scope of human resource management is extremely wide.

It may be clearly pointed out that the scope of human resource management varies from organisation to organisation and from country to country. Different authorities On management include different functions in the scope of personnel management. We can summarise them as follows:

1. Procurement- Procurement includes recruitment and selection of right kinds of personnel to occupy the various posts in the organisation. It includes: (a) determination of manpower requirements; (b) job analysis;
(c) nature and scope of recruitment; (d) employee selection; and (e) placement of employees.

2. Training and development is a must to prepare the worker gaining proficiency in the methods and techniques of work assigned to them. Efforts may be made to involve the employees in actual management situations., Employees participation in committees and board meetings may also contribute toward their development.

3. Job Analysis and Job Description — Job analysis and job description involves the studies of job requirements of the enterprise and assignment of well defined functions to jobs so that qualified employees may be hired. It also forms the basis of wage determination.

4. Remuneration — Provision of adequate remuneration for the work done by an employee involves job analysis and job evaluation. It includes determining wage rates, incentive systems of wage payment, merit-rating and performance appraisal,

5. Personnel Records — The function of personnel records includes collection of bio-data of all employees pertaining to their work e.g., training job performance, aptitude payment records etc.

6. Welfare and Industrial Relations — It includes health and safety programme, sanitary facilities, recreational facilities, group insurance employee associations etc.

The Indian Institute of Personnel Management (IIPM) has described the scope of Human Resource Management into the following three aspects—

1. Labour or Personnel Aspect. It is concerned with the personnel aspect of HRM. Functions associated this aspect include activities concerned with. manpower planning, recruitment, selection, placement, induction promotion, transfer, demotion, separation, layoff, retrenchment, training and development, wage and salary administration, Incentive etc.

2. Welfare Aspect. Welfare aspect covers activities concerning with working conditions and amenities such as canteens, creches, rest rooms, lunch rooms, housing, transport^ educations, medical help, health, safety, recreation and cultural facilities etc.

3. Industrial Relations Aspect. This aspect is concerned with the company’s relations with the employees as a group and include union- management relations, joint consultations, negotiations, collective bargaining, grievance handling, disciplinary action, settlement of industrial disputes etc.

Question 4.
What are the various functions of human resource management?
Or
“Personnel management involves two categories of functions, managerial and operative”. Describe these functions in detail.
Functions Of Human Resource Management
Human resource management involves two categories of functions:
(A) Managerial
(B) Operative

(A) Managerial Functions
General management and personnel management are one and the same. Basic managerial functions—planning, organising, directing and controlling—are common to all managers including personnel or human resource managers and are performed by all of them. Following are the managerial functions of human resource management:

1. Planning — The planning functions of human resource department pertains to the steps taken in determining in advance personnel requirements, personnel programmes, policies etc. After determining how many and what type of people are required, a personnel manager has to devise ways and means to motivate them. *

2. Organisation — Under organisation, the human resource manager has to organise the operative functions by designing structure of relationship among jobs, personnel and physical factors in such a way so as to have maximum contribution towards organisational objectives. In this way a personnel manager performs following functions: (a) Preparation of task force; (b) allocation of work to individuals; (c) integration of the efforts of the task force; (d) coordination of work of individual with that of the department.

3. Directing — Directing is concerned with initiation of organised action and stimulating the people to work. The personnel manager directs the activities of people of the organisation to get its functions performed properly. A personnel manager guides and motivates the staff of the organisation to follow the path laid down in advance.

4. Controlling — Controlling is concerned with the regulation of the activities in accordance with the plans. Controlling complete the managerial cycle and leads back to planning. Through direct observation, direct supervision, as well as reports, records and audit, personnel manager assures himself that the activities are being carried out in accordance with the plans. Controlling also helps the personnel manager to evaluate the performance of the human resource department in doing various operative functions.

(B) Operative Functions
Operative functions are those functions which are entrusted to the human resource department. Such functions are of the routine nature. These are concerned with procurement, development, compensation, integration and maintenance of the personnel of the organisation. Following are the important operative functions of personnel or human resource department:

1. Procurement of Personnel — It is the first operative function of ‘ Human Resource Management. It is concerned with the number of persons necessary to accomplish organisational goals. It includes following subfunctions:

• determination of man-power requirements;
• determining the nature and sources of recruitment;
• selection of employees;
• placement and induction.

2. Development and Training of Personnel — After the placement of employees on various jobs the next function of the human resource management is to give them training and to develop them to get their work efficiently. The personnel department devises and runs the appropriate training programme for developing the necessary skills among the personnel.

3. Remuneration — Another function of human resource management is concerned with the determination of wages and salaries policy and levels. The personnel or human resource manager has to consider various factors while fixing the remuneration viz., basic needs, requirements of the jobs, legal provisions, financial capacity of the firm, wage-level of competitors, performance rating etc.

4. Integration or Human Relations — The maintenance and promotion of harmonious relations between employees working in different departments, and between the employees and management is a function of personnel or human resource department. The personnel department has to ensure a reasonable reconciliation of the interest of the personnel with that of ‘ organisation. The personnel manager must provide an efficient system of communication. He should be in touch with the grievances of the people at work and try to remove them. In all circumstances, he should try to maintain proper discipline in the organisation.

5. Maintenance of Personnel — Maintenance of personnel means to keep the workers engaged on the work with good health and with full loyalty to their jobs and to the organisation. This functions involves provisions of better working conditions and labour welfare activities such as medical benefits, housing facilities, canteens, recreational facilities, rest rooms etc.

Question 5.
What is the importance of human resource management in industrial undertaking?
Or
Examine carefully the place of human resource management in business organisation.
Importances Of Human Resource Management :
During the past two centuries because of the quick industrial development, a new industrial world with new industrial culture has emerged. According to this, human power has no place to importance but physical resources have been given an important place and hence labour relations have taken a new turn. Everyday new labour problems are raised and the management ‘ has to find out their solution.

Human Resource Management has a place of great importance. According to Peter F. Drucker, “The proper or improper use of the different factors of production depend on the wishes of the human v resources. Hence, besides other resources, human resources need more development. Human resources can increase cooperation but it needs proper and efficient management to guide it.”

Some scholars have compared human brain with human resource management. As the brain directs all the parts of the human body and by its illness the best parts of the body become inactive. Likewise an efficient human resource management takes work from the whole personnel and gains the objective.

Lawrence A. Appley has stressed that if management agrees to this truth that management means the development of the personnel-and pay attention to the development of human resources properly, many problems relating to management will be solved in itself and many difficulties will not arise. R. M. Aldrich calls the personnel or human resource management as the nervous system i.e., an integral part of the process of management itself.

Effective management of Human Resources is essential not only for the organisation, but also for the society and notion is discussed below-

Importance for the Organisation. Importance of personnel management is in reality the importance of labour functions of personnel department which are indispensable to the management activity itself. Because of the following reasons human resource management holds a place of importance.

1. It helps management in the preparation, adoption and continuing evolution of personnel programmes and policies.
2. It supplies skilled workers through scientific selection process.
3. It ensures maximum benefit out of the expenditure on training and development and appreciates the human asset.
4. It prepares workers according to the changing needs of industry and environment.
5. It motivates workers and upgrades them so as to enable them to accomplish the organisation goals.
6. Through innovation and experimentation in the field of personnel, it helps in reducing casts and helps in increasing productivity.
7. It contributes a lot in restoring the industrial harmony and healthy employer-employee relations.
8. It establishes mechanism for the administration of personnel services that are delegated to the personnel department.

Importance for the Society :
Sound HRM has great importance for the society in the following ways-

• It provides suitable employment to labour that provides social and psychological satisfactions to people.
• It develops sound personnel policies for socio-psychological satisfaction to people at work.
• It maintains a balance between jobs available and job seekers in terms of numbers, qualifications, needs and aptitude.
• It eliminates waste of human resources through conservation of physi-cal and mental health of the people.

Importance for the Nation :
Effective human resource management plays a vital role in the growth, development and self sufficiency of the nation. An efficient and committed manpower only can utilise the nation’s natural, physical and financial resources of the country. There are wide differences in development between countries with similar resources due to differences in quality of their people. Countries are developed or underdeveloped not because of their resources but because of educational and other standards. If the people are educated skilled and efficient, the country will progress in the desired direction. Effective management of people results in their developments which in turn, speeds up the process of economic growth leading to higher standards of living and employment opportunities.

Thus, the role of Human Resource Management is very important in an organisation and it should not be’ undermined especially in large scale enterprises. It is the key to the whole organization and related to all other activities of the management i.e. marketing productions and finance etc.

DU SOL B.Com 3rd Year Human Resource Management Notes

## Delhi University DU SOL B.Com 3rd Year E-Commerce Notes & Study Material

### DU SOL B.Com Programme 3rd Year E-Commerce Syllabus

Chapter 1 Introduction to E-Commerce:
Meaning of E-Commerce and its Nature; Advantages of E-commerce, Categories of E-Commerce.

Nature and Dynamics of the Internet; Differences between Pure Online and Brick and Click Business; Requirements for E-commerce designing; Tools for Promoting Websites; Product and Service Digitisation; Remote Servicing and Procurement; On-Line Marketing and Advertisement with reference to E-Commerce; E-Commerce resource and Infrastructure.

Chapter 3 Technology for Online Business:
E-Commerce as part of the Internet and IT Infrastructure; Middleware; Text and Integrating E-business Applications.

Chapter 4 Mechanism of making Payment through Internet:
Special Features Required in Payment systems for E-commerce; Types of E-Payment Systems; Business issues and Economic Implications; Components of an Effective Electronic Payment system.

Chapter 5 Laws relating to Online Transactions:
Cyber Laws and its Aims and Salient Provisions; Cyber Laws in India; Taxation issues in Electronic Commerce.

Chapter 6 Applications in E-Commerce:
E-commerce applications in manufacturing, wholesale, retail and service sectors.

Chapter 7 Security in E-Commerce:
Security risks of E-commerce; Types of threats and sources of threats; Risk Management approach; E-commerce security and Rational security policy for E-commerce.

Chapter 8 Website Design:
Role of Website in B2C E-commerce; Website Strategies and Website Design Principles; Push and Pull Technologies; Alternative methods of customer communication.

Chapter 9 Multimedia and E-Commerce:
Concept and Role of Multimedia; Various Media elements used in Multimedia Technologies; Meaning of Digital Video; Desktop Video Conferencing and Marketing; Various Broadband networks and related concepts: ISDN, ATM,
Cell relay.

Chapter 10 Internet Protocols:
Layers and Networking; OSI Layering and TCP Layering; Meaning of TCP, UDP, IP, SLIP and PPP Protocols; Emerging Scenario in ISP and internet work.