Human Resource Management and Development - H.R.M
Introduction To Human Resource Management
Every business unit needs human resource (manpower) for the conduct
of different business activities. In fact, no organisation can exist or
operate efficiently without the support of human resource. Such human
resource includes top level managers, executives, supervisors and other
subordinate / lower level staff / employees. A business organisation has
to estimate its future manpower needs and adjust its manpower planning
and development programmes accordingly. This is called '
staffing' function of management. Human resource management is also described as personnel management or manpower management.
According to
Edwin Flippo,
"Personnel Management is the planning, organising, directing and
controlling of the procurement, development, compensation, integration
and maintenance of people for the purpose of contributing to
organizational, individual and social goals".
Various areas such
as recruitment and selection, wage payment and industrial relations are
covered under human resource management.
Meaning of Human Resource
In an industrial unit, large number of persons are employed in order
to conduct various operations and activities. This is treated as human
resource or manpower employed. A business unit needs material resources
as well as human resource for the conduct of various activities. Of all
the "M"s in management (such as Materials, Machines, Methods and Money)
the most important "M" stands for Men i.e., manpower working in the
organisation. It is through manpower/employees that all other
ingredients of an enterprise-money, machines, materials, marketing,
etc., are managed. In brief, Human Resource (HR) constitutes the most
important and the most productive resource of an industrial / business
unit.
It is rightly said that "machines are important in the
production process but the man behind the machines is more important".
He transforms the lifeless factors of production into useful products.
Human resource (HR) is an important asset of a business unit.
Well-trained, loyal and efficient team of workers brings success and
stability to a business unit. This suggests the importance of human
resource in business. People and the organisation in which they work are
inter-related and interdependent. organisation moves towards prosperity
only by using its available human resource purposefully. Similarly,
employees get various monetary and other benefits through the prosperity
of their organisation.
What is Human Resource Development? HRD
Human Resource Development (HRD) means to develop available manpower
through suitable methods such as training, promotions, transfers and
opportunities for career development. HRD programmes create a team of
well-trained, efficient and capable managers and subordinates. Such team
constitutes an important asset of an enterprise. One organisation is
different from another mainly because of the people (employees) working
therein. According to
Peter F. Druker,
"
the prosperity, if not the survival of any business depends on the
performance of its managers of tomorrow." The human resource should be
nurtured and used for the benefit of the organisation.
Importance of Human Resource in Management
Human resource is most important resource in management and needs to
be used efficiently. This is because success, stability and growth of an
organisation depend on its ability in acquiring, utilizing and
developing the human resources for the benefit of the organisation. In
the final analysis, it is the people (i.e employees) who produce
promising results and generate a climate conductive to the growth and
development of an organisation. HR is a highly productive corporate
asset and the overall performance of companies and corporations depends
upon the extent to which it is effectively developed and utilised. It is
the most delicate factor of production and need not be treated merely
as a commodity to be bought and used in factories.
According to
Peter Drucker, "The function of management is to manage managers,
workers and work". The importance of manpower in business management is
now universally accepted. Employees have a capacity to grow and develop,
if suitable opportunities are offered. They give positive response to
monetary and non-monetary incentives, training opportunities, favorable
work environment and motivation. According to
Pigors and Myers,
"Good management means getting effective results with people". This suggests the importance of human resource.
Human
resource is certainly important even in this age of extensive use of
computer technology. This is because machine cannot be used as a
substitute for human brain which has capacity to think, assess and
react. It is correct to say that man is a power rather than man has a
power. Progressive / professional managements invest huge funds on
training and development of human resource and this suggests the
importance of human resource and its contribution in industrial and
economic development. Professionally managed companies in India such as
Larsen and Toubro Ltd,
TELCO,
Reliance, etc., give special importance and good attention to HRD.
The following remark of Shri
Dhirubhai Ambani,
former chairman of Reliance Industries Ltd. (made in the 21st AGM held
on 3/8/95), is worth noting in this regard. "Our People : People are
assets you can never show on a balance sheet. Our company has a human
resource asset of around 12,500 people; 3,000 of which constitute
scientific and technical manpower. Every year we add over 450 young
professionals. These motivated and well-trained people are the backbone
of our business. The team is young in spirit, conscious of its
responsibilities and committed to building world class assets for the
country".
Definitions of Human Resource Planning - HRP
- Colemn
has defined human resource planning as "the process of determining
manpower requirements and the means for meeting those requirements in
order to carry an integrated plan at the organisation".
- Stainer defines manpower planning as
"strategy for the acquisition, utilisation, improvement and preservation
of an enterprise's human resources. It relates to establishing job
specifications or the quantitative requirements of jobs determining the
number of personnel required and developing resources of manpower".
Objectives of Manpower / HR Planning
- To ensure optimum utilisation of human resources currently employed in the Organisation.
- To determine the future manpower requirements of the Organisation as
per the need for renovations, modernisation, expansion and growth
programmes.
- To determine the recruitment level.
- To ensure that necessary human resources are available as and when required.
- To assess future accommodation requirements.
- To design the basis for management development programmes so as to develop the required talents among the employees selected.
Advantages / Importance of HRP (Planing)
- Meeting
manpower needs : Every Organisation needs adequate and properly
qualified staff for the conduct of regular business activities.
Imaginative HRP is needed in order to meet the growing and changing
human resource needs of an organisation.
- Replacement of manpower : The existing manpower in an Organisation
is affected due to various reasons such as retirement and removal of
employees and labour turnover. HRP is needed to estimate the shortfall
in the manpower requirement and also for making suitable arrangements
for the recruitment and appointment of new staff.
- Meeting growing manpower needs : The expansion or modernisation
programme may be undertaken by the enterprise. Manpower planning is
needed in order to forecast and meet additional manpower requirement due
to expansion and growth needs through recruitment and suitable training
programmes.
- Meeting challenges of technological environment : HRP is helpful in
effective use of technological progress. To meet the challenge of new
technology existing employees need to be retrained and new employees may
be recruited.
- Coping with change : HRP enables an enterprise to cope with changes
in competitive forces, markets, products, and technology and government
regulations. Such changes generate changes in job content, skill, number
and type of personals.
- Increasing investment in HR : An employee who picks up skills and
abilities becomes a valuable resource because an organisation makes
investments in its manpower either through direct training or job
assignments.
- Adjusting manpower requirements : A situation may develop in; an
organisation when there will be surplus staff in one department and
shortage of staff in some other department. Transfers and promotions are
made for meeting such situations.
- Recruitment and selection of employees : HRP suggests the type of
manpower required in an organisation with necessary details. This
facilitates recruitment and selection of suitable personnel for jobs in
the Organisation. Introduction of appropriate selection tests and
procedures is also possible as per the manpower requirements.
- Placement of manpower : HRP is needed as it facilitates placement of
newly selected persons in different departments as per the
qualifications and also as per the need of different departments.
Surplus or shortage of manpower is avoided and this ensures optimum
utilisation of available manpower.
- Training of manpower : HRP is helpful in selection and training
activities. It ensures that adequate number of persons are trained to
fill up the future vacancies in the Organisation.
Meaning of Personnel Management
Personnel refer to the employees working in an organisation. They
represent the manpower which is an important asset of a business unit.
Employees are the real supporters of a business unit and they contribute
substantially for the stability and prosperity of a business unit.
Employees have various problems relating to wage payment, promotions,
transfers, working conditions, welfare facilities, training and so on.
All such problems are treated as personnel problems. These problems come
within the scope of personnel management which is one important area of
total business management. Naturally, a separate department called
'Personnel Department' is created in every organisation. It looks after
the personnel problems. The manager in charge of this department is
called personnel manager. He has to perform various functions which are
responsible in nature and also delicate. He needs tact and imagination
while dealing with personnel problems. He also needs active support of
the top management for dealing with personnel problems effectively.
A
personnel manager must be a specialist in organisation theory. In
addition, he should be an expert in the personnel administration with
knowledge of relevant Labour laws, procedures and so on. A personnel
manager needs sound academic qualifications, communication skill, broad
social outlook, sympathy and consideration for employees. Knowledge of
subjects like philosophy, logic, sociology and ethics is also useful
while discharging his duties and responsibilities. He needs a keen sense
of social justice and also rights and interest of men (employees) at
work. A personnel manager also needs other qualities which are normally
required by a successful manager.
In short, personnel management
deals with the people working in an organisation. It studies and solves
their problems in order to create an efficient, loyal and co-operative
labour force for the benefit of a business enterprise.
Personnel management deals with "personnel" of the organisation. It is concerned primarily with the manpower resource inputs.
Definitions of Personnel Management
- According to Edwin Flippo,
"Personnel management is the planning, organising, directing and
controlling of the procurement, development, compensation, integration
and maintenance of the people for the purpose of contributing to
organizational, individual and social goals."
- According to George R. Terry, "Personnel management is concerned with the obtaining and maintaining of a satisfactory and a satisfied, workforce."
- According to British Institute of Personnel Management,
in London, "Personnel management is that part of management which is
concerned with the people at work and with their relationship within an
enterprise."
Features of Personnel Management
- Personnel
management relates to managing people at work. It covers all levels of
personnel’s and their needs, expectations and so on. In this sense, it
is a comprehensive function and is basically concerned with managing
people at work.
- Personnel management is concerned with employees, both as
individuals as well as a group. The aim of personnel management is to
get better results (for the Organisation) through their involvement,
motivation and co-operation. It is a people-oriented process of bringing
people and organisations together so that the goals of each are met
property.
- Personnel management is concerned with helping the employees to
learn and develop their potentialities to the highest level for their
benefits as well as for the benefits of their Organisation.
- Personnel management is inherent in all organisations as all
organisations (including industrial and commercial) need manpower for
the conduct of their activities. They are concerned with recruitment,
selection, utilisation and development of manpower available. Personnel
management is an integral aspect of total business management.
- Personnel management is a continuous activity/function in an
Organisation as personnel problems continue to exist as long as
employees are working in an Organisation. They need constant attention
as they may disturb normal working of an Organisation, if neglected.
- Personnel management aims as securing willing co-operation of
employees for achieving organizational objectives. This is natural as
industrial and other activities can be conducted only with the support
of human resources.
Objectives / Purposes of Personnel Management
- To
attain maximum individual development (self development) of the members
of an Organisation and also to utilise available human resources fully
and effectively.
- To mould effectively the human resources.
- To establish desirable working relationships between employer and employees and between groups of employees.
- To ensure satisfaction to the workers so that they are freely ready to work.
- To improve the service rendered by the enterprise to the society
through better employee morale which leads to more efficient individual
and group performance.
- To establish and maintain a productive and self respecting relationship among the members of an Organisation.
- To ensure the availability of a competent and willing workforce to the Organisation for its progress and prosperity.
- To help Organisation to achieve its goals by providing well trained, efficient and property motivated employees.
- To maintain high morale and good human relations within the Organisation for the benefit of employer and employees.
- To secure the integration of all the individuals and groups with the
Organisation by reconciling individual/group goals with those of an
Organisation.
Functions of Personnel / HR Management
The functions of HRM are directly or indirectly related to the human
resource available in the organisation. HR manager has to perform the
basic functions of management in the area of HRM. These managerial
functions include planning, organising, directing and controlling the
manpower of his department. The operative functions of the HRM include
procurement of manpower, development of manpower, and payment
compensation to manpower and so on. In short, HRM involves the following
functions and these functions are to be performed by the HRM department
of the Organisation:
Functions of Personnel / HR Management are :-
- Procurement
of manpower : Procurement means acquiring or resourcing the human
resources or the manpower required by an Organisation from time-to-time.
Such procurement will be from the employment market. The basic
principle in procurement is "right man for the right job". The
procurement function includes manpower planning and forecasting,
recruitment, selection, appointment, placement and induction of
employees so as to have a team of efficient and capable employees for
the benefits of the Organisation. Even promotions and transfers are
covered by this broad personnel function. At present, scientific methods
are used for recruitment and selection of most suitable manpower for
the benefit of the Organisation.
- Training and Development of manpower : Development of manpower
(human resource development) means planning and execution of the
training programmes for all categories of employees in order to develop
new skills and qualities required for working at the higher level.
Manpower development is possible through training programmes and not
simply by offering attractive wages to workers. Such manpower
development (possible through systematic training programmes) is
required for meeting the growing and changing needs of manpower along
with the expansion and diversification of business activities. Executive
development programmes are introduced for the benefit of higher level
managers. Promotions and transfers are possible when manpower
development programmes are introduced regularly. Similarly, future
manpower requirement will be met properly through such manpower
development programmes. This suggests the importance / significance of
human resource development. It aims at educating and training employees
for the improvement of overall performance of an Organisation. HRD
programmes are for education, training and development of existing
manpower in an Organisation. This is for facing new problems and
challenges likely to develop in the near future.
- Compensation payment and reward to manpower employed : One function
of HRM department is to pay compensation (in monetary form) to employees
for the services rendered. For this, a fair system of remuneration
payment (wages and salaries) needs to be introduced. Remuneration to
employees should be attractive so that the labour force will be
satisfied and disputes, etc., will be minimized. Fair wage payment acts
as a motivating factor. Along with compensation payment, HRM also deals
with reward system. It is a type of appreciation of exceptional good
work and offer some monetary or non-monetary incentive to suitable
employees.
- Integration of interests of manpower and the Organisation : Manpower
is interested in wage payment while Organisation is interested in
higher profits, consumer loyalty market reputation and so on. Personnel
management has to reconcile the interests of the individual members of
the Organisation with those of the Organisation. This will ensure
cordial industrial relations. Reconciliation of individual, social and
organizational goals and interest is one challenge before HRM.
- Maintenance of manpower : This HRM function relating to maintaining
of satisfied manpower in the Organisation through the provision of
welfare facilities. For this attention needs to be given to health and
safety measures, maintenance of proper working conditions at the work
place, provision of welfare facilities and other non-monetary benefits
so as to create efficient and satisfied labour force with high morale.
Even collective bargaining and workers participation come within this
broad personnel function. Maintenance of stable manpower is difficult
due to the availability of ample employment opportunities.
- Provision of welfare facilities : Employees are offered various
welfare facilities. They include medical, educational, recreation,
housing, transport and so on. These facilities are given for raising
their efficiency and also for making their life happy. Welfare
facilities create efficient and satisfied Labour force. To introduce new
labour welfare facilities and to maintain the existing facilities is
one of the functions of HRM.
- Miscellaneous functions : Misc. functions performed under personnel management are :-
- Maintenance of service records of employees,
- Promotions and transfers of employees,
- Maintaining cordial industrial relations,
- Introduction of rational grievance procedure,
- Performance evaluation of employees,
- Career planning of employees,
- Maintenance of discipline, administering the policies with regard to disciplinary action and compliance of various labour laws,
- Restructuring of the Organisation,
- Formulating HRM strategy, etc.
These
HRM functions need to be performed regularly for the benefit of
employees and also for continuity in the production activities of the
Organisation.
W.R. Spriegel has divided the functions of personnel management / HRM department into the following six broad categories :-
- Employment
- Promotion, Transfer and Termination.
- Training.
- Wages and other incentives.
- Service activities (welfare activities).
- Collective bargaining and workers' participation.
As per
Indian Institute of Personnel Management (IIMP now called NIPM), the Personnel / HRM functions are classified as noted below :-
- Improvement of industrial relations,
- Promotion of joint consultation,
- Helping management to formulate a labour policy and improving communication between management and employees,
- Advising management on the fulfillment of statutory obligations relating to safety, health and welfare of the employees,
- Improving factory amenities and welfare provisions, and
- Advising the management on the training and future education of employees.
In
the HRM department, various sections are created in order to give
attention to various functions which are basically HRM functions. The
functions (as noted above) are varied in character. These are functions
of HRM and also the functions of personnel management. They are
important and needs constant attention. Efficient, satisfied and
co-operative labour force can be created by giving proper attention to
various personnel functions.
Recruitment And Selection
Recruitment and selection constitute staffing function of management.
Scientific selection ensures right man for the right job. For creating a
team of efficient, capable and loyal employees, proper attention needs
to be given to scientific selection of managers and other employees. The
conventional approach of selecting managers in a casual manner is now
treated as outdated and is being replaced by scientific and rational
approach. The basic principle in selection is "right man for the right
job" and can be achieved only through scientific recruitment and
selection.
Meaning of Job Analysis
Job analysis is prior to recruitment. Job means a task or a specific
activity to be performed in one or the other department of a production
unit. Clear understanding of the job is called job analysis. It creates a
proper background for recruitment and selection. Job analysis is the
process of collecting all relevant information relating to the job. This
information relates to the nature and features of a job and the
qualities and qualifications required for performing the job
efficiently. Job analysis provides basic information which facilitates
scientific recruitment and selection.
According to Edwin Flippo,
"Job analysis is the process of studying and collecting information
relating to the operations and responsibility of a specific job."
Benefits of Job Analysis
- Facilitates
proper publicity of jobs : Exact details of the job and the
qualifications, qualities, etc., required can be notified in the
advertisement because of job analysis. Scrutiny of applications and
selection of suitable candidates is made manageable, easy and quick.
- Facilitates appropriate selection of psychological tests :
Psychological tests can be adjusted exactly as per the need of the job
due to the availability of details from job analysis.
- Facilitates purposeful interviews : Interviewers should be given the
details of job analysis before interviewing the candidates. This makes
the interviews relevant as the candidates are judged accurately in the
light of details of job analysis.
- Facilitates appropriate medical examination : Even the medical
examination is adjusted as per the information available from job
analysis.
- Facilitates scientific selection and placement of candidates : Job
analysis makes the selection work accurate. The tragedy of misfit is
avoided. In addition, proper placement (as per qualifications and
qualities) of employees is possible due to job analysis.
- Facilitates scientific promotions and transfers : Promotions and
transfers become easy, quick and accurate on the basis of data of job
analysis.
- Facilitates impartial performance appraisal : A company can make
scientific and impartial performance appraisal of its employees with the
help of job analysis data.
- Useful for providing training : Job analysis suggests the qualities
necessary for performing specific job. This information can be used in a
purposeful manner while framing training programmes for jobs.
- Useful for fixing wage structure : Job analysis indicates relative
worth of each job within the Organisation. This information is useful
for fixing wage rates for different categories of workers.
- Facilitates redesigning of jobs : Job analysis gives the details of
different jobs and facilitates redesigning of jobs so as to improve
operational performance or to enrich job content and employee
improvement.
Meaning of Recruitment
Recruitment means to estimate the available vacancies and to make
suitable arrangements for their selection and appointment. In the
recruitment process, the available vacancies are given wide publicity
and suitable candidates are encouraged to submit applications so as to
have a pool of eligible candidates for scientific selection.
In
recruitment, information is collected from interested candidates. For
this different sources of recruitment such as newspaper advertisement,
employment exchanges, internal promotions, etc., are used. In the
recruitment, a pool of eligible and interested candidates is created for
the selection of most suitable candidates. Recruitment represents the
first contact that a company makes with potential employees.
Recruitment
is a positive function in which publicity is given to the jobs
available in the organisation and interested candidates (qualified job
applicants) are encouraged to submit applications for the purpose of
selection.
Definition of Recruitment
According to Edwin Flippo,
"Recruitment is the process of searching
for prospective employees and stimulating them to apply for jobs in the
Organisation."
Need for Recruitment
The need for recruitment may be due to the following reasons / situations :-
- Vacancies : due to promotions, transfers, retirement, termination, permanent disability, death and labour turnover.
- Creation of new vacancies : due to growth, expansion and
diversification of business activities of an enterprise. In addition,
new vacancies are possible due to job respecification.
Meaning of Selection
Selection is next to recruitment. It is the process of choosing the
most suitable candidates (Properly qualified and competent) out of many
interested candidates. It is a process of selecting the best and
rejecting the rest. In this selection process, interested applicants are
differentiated in order to identify those with a greater likelihood of
success in a job. Such candidates are selected and appointed.
Selection
is a negative function as it relates to elimination of unsuitable
candidates. 'Right man for the right job' is the basic principle in
selection. Selection of suitable candidates is a responsible type of
work as selection of unsuitable persons for jobs creates new problems
before the business unit. For appropriate selection, scientific
procedure needs to be followed.
Recruitment and selection are Supplementary Activities
In recruitment prospective employees are encouraged to apply for the
jobs and in the selection; the most suitable candidates are selected out
of the pool of applicants. The purpose of both is to have the most
suitable and most capable candidates for the Organisation out of a pool
of available and interested candidates. The recruitment process widens
the scope for selection and provides wide choice for the selection of
best candidates out of many interested. Recruitment and selection need
lengthy and scientific procedure particularly in the case of managerial
posts. Such lengthy procedure must be followed for scientific selection
of employees.
Sources of Recruitment and selection are Supplementary Activities
Sources of recruitment are the outlets through which suitable
candidates are available. The Following chart shows the sources of
recruitment at supervisory and managerial levels.
Steps In The Scientific Selection Process
In the selection procedure, out of the available / interested
candidates, the best one is selected through written test, psychological
tests, personal interview and medical examination. Such lengthy
procedure is followed in order to select the most suitable candidate.
Selection process is a screening process. It is a type of hurdle race to
the candidates. Final selection is possible only when the candidate
completes this hurdle race successfully. Lengthy selection procedure is
needed for scientific selection of candidates.Steps involved in the selection procedure are :-
- Job
Analysis : job analysis prepares proper background for recruitment and
selection. It gives details of a job to be performed and the human
qualities and qualifications required for performing that job
efficiently. Scientific selection is possible only when it is made in
the light of the details available from job analysis. Job means an
activity performed in one or the other department of a business unit. A
job includes various positions. Clear and detailed understanding of the
job is called job analysis or job study.
- Advertisement : This medium is widely used for recruitment of all
categories of personnel. Though quite costly, it provides a wide choice
as it attracts large number of candidates from all over the country. The
qualities and qualifications expected from the candidates are usually
mentioned in the advertisement.
- Collection of Applications Blanks : In this step, applications with
necessary details are collected from interested candidates. Some
companies give advertisement in the press and ask interested candidates
to submit applications on a prescribed form.
- Scrutiny of Applications Received : After the last date fixed for
the receipt of applications, officer from the personnel department
starts the scrutiny of applications received. Incomplete applications
are normally rejected. Applicants, who do not possess required
qualifications, experience, etc., are also rejected. Along with this,
the certificates, testimonials and references are checked.
- Written Tests : After the scrutiny of applications, a final list of
candidates for written tests is prepared. The purpose of such tests is
to judge the knowledge of the candidate and also to find out his :-
- Intelligence,
- Aptitude,
- Capacity,
- Interests and
- Suitability for a specific job.
Trade test is particularly
necessary in the case of technical jobs such as junior engineer,
computer engineer and research assistant and so on. At present, such
test is given in the case of all types of jobs. For example, written
tests are used by Banks and public sector organisations for selection
purpose.
- It is also possible to reject candidates whose performance in such
written tests is not up to the mark. Testing of candidates is a lengthy
process particularly when the number of applicants is large. In such
testing, the process of elimination can be introduced. For example, all
candidates may be invited for the first test and' the candidates with
poor performance in the first test need not be called for the second
test.
- Psychological Tests : The psychological tests given to candidates include the following tests :-
- Intelligence test,
- Aptitude test,
- Interest test,
- Achievement test,
- Analytical test,
- Performance test,
- Synthetic test and
- Personality test.
Each test needs to be given separately and each test is useful for
judging specific quality of a candidate to be selected for the executive
post.
- Personal Interview : The candidates who have shown reasonably good
performance in the written examination and psychological tests are
called for personal interview. Interview technique is used extensively
for the selection of managerial posts. This interview is conducted by
one interviewer or by a group of interviewers including top officers of
the company and other professional experts. The candidate is asked
various questions about his qualifications, experience, family
background and performance in the written test and psychological tests
by the interviewers during the course of the interview. In this final
interview, an attempt is made to judge overall personality of the
candidate. The selection committee notes the plus and minus points of
every candidate and selects the best candidates for appointment by
applying certain uniform norms. Here, 'short-listing of candidates' is
done for final selection as per the need of the organisation. The final
selection depends partly on the performance of the candidate in the
tests and also on the performance in the personal interview.
- Reference Check : The candidate is required to give at least two references which may be :-
- Educational,
- Social and
- Employment.
These references help to cross check the information provided by the candidate.
- Medical Examination : The purpose of medical examination is to judge
the general health and physical fitness of the candidate. Candidates
who are not physically fit for the specific job are rejected even when
they show good performance in the tests and personal interview. Medical
test is taken in the case of all candidates before appointment. In case
of certain jobs, the test is of a general nature. However, medical
examination has special importance in armed forces.
- Final Selection for Appointment : The selection procedure comes to
an end when the final appointment letter is sent to the candidate with a
request to join the organisation on a particular date. This means the
'job is offered to the selected candidate' and he is asked to join the
organisation within a specific time limit.
Psychological Tests / Selection Tests
For scientific selection of candidates (particularly for higher level
/ executive level posts) different types of tests are given to
candidates as per the requirements of the post for which selection is
required to be made. Such tests include written test, trade test and
psychological tests. The basic purpose is to judge the knowledge,
skills, intelligence, aptitude, etc., of the candidate before his
selection. It is also possible to reject the candidates who show poor
performance in such tests. The possible performance of the candidate in
the future can be judged with the help of such tests. Such tests need to
be conducted in a systematic manner and not as a mere formality. The
assistance of experts should be taken while conducting such tests. In
addition, the results of such tests should be used while taking final
decision regarding selection of the candidate. Such tests are
particularly useful for the selection of supervisory staff in an
Organisation.
Important Psychological Tests
- Intelligence
test : Intelligence test is useful for judging the intelligence of a
candidate. According to the industrial psychologist, "General
intelligence is the capacity of a person for comprehension and logical
reasoning." Previously only the passing certificates of certain
examinations were universally accepted as evidence of intelligence.
After long experience, employees discovered that such certificates were
not always very reliable as they indicate only paper qualifications.
Fortunately for them, two French psychologists. Simon and Binet
had developed in 1916 suitable Intelligence Tests to measure general
intelligence. According to these tests, intelligence of a person or his
intelligence quotient (I.Q.) can be measured by his performance in the
test.
- Vocational aptitude test : Vocational aptitude has been defined as
"the capacity or latent ability of an individual to learn a job, given
the necessary training." It has been claimed that vocational aptitude is
as important and perhaps more important than general intelligence for
success on a job. It is, therefore necessary to ascertain the vocational
aptitude of a candidate before final selection.
- Analytical test : For the purpose of analytical tests, a job is
first analyzed in terms of such qualities as speed, dexterity,
observation, etc. Terms are then devised to measure the degree to which a
candidate possesses these qualities. Dr. Munsterberg,
an industrial psychologist in the US, had first devised such tests for
the selection of telephone operators for the American Telephone and
Telegraph Company. He had also devised similar tests for the selection
of inspectors for inspection of ball bearings for an American bicycle
manufacturer. These tests had produced satisfactory results.
- Synthetic test : In case of jobs which are complex and so cannot be
analyzed and for which analytical tests cannot be developed, synthetic
tests have been evolved. The essence of these tests is that the
candidate is presented a complex situation, more or less similar to the
one which he will have to face in his job but on a miniature scale and
he is asked to handle the situation. His performance in such a test
indicates his aptitude for the job. Dr. Munsterberg had devised such a
test for the selection of tram drivers for a Tram Company in the United
States. Today, a similar test is being used for the selection of motor
and truck drivers.
- Trade test : Trade test is necessary and useful in the case of jobs
which involve technical work. For example, a stenographer or a typist
should be given suitable test in order to judge his ability to take
dictation or type. Similar trade tests can be given to welders, machine
operators and so on. Workers can be given such tests in order to find
out their capacities for the type of job for which they are being
considered.
- Personality test : Personnel managers have come across many
individuals with the necessary intelligence and the vocational aptitude,
and yet did not prove successful in the jobs for which they are
selected. Industrial psychologists felt that they might not have a
suitable personality or temperament and began to develop tests to
measure personality traits. Protective test is one such test. Its
essential feature is that it induces a candidate to reveal his inner or
real personality.
Advantages Of Psychological Tests In SP
Note:- Here, SP = Selection Procedure
- Objective comparison of candidates possible.
- Incompetent candidates are eliminated.
- Suitable candidates are given proper placement.
- Right man to the right job is achieved.
- Achievements of the candidates are verified.
- Compatibility of the candidate can be found out.
- Mental qualities of candidates are evaluated.
- Overall ability of the candidates is measured.
- Application of knowledge is found out.
- Accuracy in selecting employees.
Importance / Role of Personal Interview In SP
Interviewing is the most 'popular element in the selection
procedure'. It plays a crucial role in the selection procedure. For
majority of executive posts, it is supplemented by written and other
tests. Personal interview offers many benefits to the company and also
to the candidates.
Management Development Training and Methods
Meaning of Employee Training
Training is next to selection. A worker selected / appointed in an
Organisation needs proper training. This enables him to perform the job
correctly and also with efficiency. Similarly, a manager needs training
for promotion and for his self improvement. Employees are now given
training immediately after appointment and thereafter from time to time.
Training is used as a tool / technique for management/executive
development. It is used for the development of human resource working in
an Organisation. In fact, training is the watchword of present dynamic
business world.
Training means giving information, knowledge and
education in order to develop technical skills, social skills and
administrative skills among the employees. According to Edwin Flippo,
training is "the act of increasing the knowledge and skill of an
employee for doing a particular job."
Training is necessary due to
technological changes rapidly taking place in the industrial field. It
is also essential along with the introduction of new techniques, new
methods and so on. It is necessary for developing overall personality of
employees and also for developing positive attitude towards fellow
employees, job and Organisation where he is working.
Training of
employees is the responsibility of the management / employer.
Expenditure on such training is an investment for manpower development
and gives good dividend in the long run. Employees should take the
benefit of training facilities provided for raising their efficiency and
also for self-development. Training need not be treated as a punishment
but an opportunity to learn, to grow and to develop for jobs at the
higher levels.
Types of Training
Different types of training are :-
- Induction training,
- Job training,
- Training for promotion,
- Refresher training,
- Training for managerial development, etc.
Induction
training aims at introducing the organisation to a newly appointed
employee. It is a short and informative training given immediately after
joining the organisation. The purpose is to give "bird's eye-view" of
the organisation to an employee. Job training relates to specific job
and the purpose is to give suitable information and guidance to a worker
so as to enable him to perform the job systematically, correctly,
efficiently and finally with confidence.
Training for promotion is
given after the promotion but before joining the post at the higher
level. The purpose is to enable an employee to adjust with the work
assignment at the higher level. The purpose of refresher training is to
update the professional skills, information and experience of persons
occupying important executive positions. Training for managerial
development is given to managers so as to raise their efficiency and
thereby to enable them to accept higher positions. A company has to make
provision for providing all types of training.
Objectives of Training
- To raise efficiency and productivity of employees and the Organisation as a whole.
- To create a pool of well-trained, capable and loyal employees at all
levels and thereby to make arrangement to meet the future needs of an
organisation.
- To provide opportunities of growth and self-development to employees
and thereby to motivate them for promotion and other monetary benefits.
In addition, to give safety and security to the life and health of
employees.
- To avoid accidents and wastages of all kinds. In addition, to
develop balanced, healthy and safety attitudes among the employees.
- To meet the challenges posed by new developments in science and technology.
- To improve the quality of production and thereby to create market demand and reputation in the business world.
- To develop cordial labour management relations and thereby to improve the organisational environment.
- To develop positive attitude and behavior pattern required by an
employee to perform a job efficiently. In other words, to improve the
culture of the Organisation.
- To prevent manpower obsolescence in an organisation.
- To develop certain personal qualities among employees which can serve as personal assets on long term basis.
Importance of Training
(A) Benefits of Training To Employer / Management
- Training
raises the efficiency and productivity of managers. It also improves
the performance of workers due to their motivation.
- Training improves the quality of production. It also reduces the
volume of spoiled work and wastages of all kinds. This reduces cost of
production and improves quality.
- It reduces accidents as trained employees work systematically and avoid mistakes in the work assigned.
- Training reduces expenditure on supervision as trained employees
take interest in the work and need limited supervision and control.
- Training brings stability to labour force by reducing turnover of managerial personnel.
- Training raises the morale of employees.
- Training creates skilled and efficient manpower which is an asset of an industrial unit.
- Training moulds attitudes of employees and develops cordial industrial relations.
- Training reduces absenteeism as trained managers find their job interesting and prefer to remain present on all working days.
- Training facilitates the introduction of new management techniques
and also new production techniques including automation and computer
technology.
- Training creates a pool of trained and capable personnel from which
replacements can be drawn to fill up the loss of key personnel due to
retirement, etc.
- Training provides proper guidance and instructions to newly
appointed executives and assists them to adjust properly with the job
and the organisation.
(B) Benefits of Training to Managers / Employees
- Training creates a feeling of confidence among the employees. It gives personal safety and security to them at the work place.
- Training develops skills which act as valuable personal assets of employees.
- Training provides opportunity for quick promotion and self-development to managers.
- Training provides attractive remuneration and other monetary benefits to employees.
- Training develops adaptability among employees. It updates their
knowledge and skills and keeps them fresh. It actually refreshes the
mental outlook of employees.
- Training develops positive attitude towards work assigned and
thereby creates interest and attraction for the job and the work place.
- Training creates an attitude of mutual co-operation and
understanding among the managers. Such attitude is useful not only at
the work place but also in the social life.
Meaning of Management Development / Managerial Training
In addition to training for operative staff, an organisation has to
take steps for training managers. Such training programmes are called
'managerial development / executive development programmes. Managerial
talent is the most important asset that a company can possess.
Management development ensures that as and when the demand for managers
arise, suitably qualified persons are ready to fill the vacancies.
Managerial
development consists of all means by which executives learn to improve
their performance. It is designed to improve the effectiveness of
mangers in their present jobs and to prepare them for higher jobs in
future. Managerial development aims at helping the mangers to realise
their full potential.
Management development is a way to improving
the culture of the Organisation so that it could be geared to
excellence. "People move organisations not machines."
According to
P. N. Singh,
"Management development is an activity designed to improve the
performance of existing managers, provide a supply of managers to meet
the need of organisations in future and extend the understanding of the
management activity by drawing from the following three resource areas
:- (a) Knowledge, (b) Experience, and (c) Trainee himself."
Need / Importance of Management Development
According to Edwin Flippo, "No organisation has a choice of whether
to develop employees or not, the only choice is that of method." The
need for management development is well accepted in the present
business, which is fast changing due to technological and social
developments.
- Shortage of trained managers : Talented
and matured managers are not easily available. It is not possible to
appoint managers from outside for the key managerial posts. The better
alternative is to select talented persons as trainee managers and
develop their qualities through special training and wider exposures. In
this way, the organisation can create its own team of talented managers
to lead the whole Organisation.
- Complexity of management jobs : The jobs of managers are now
complicated and more challenging. They need varied skills for dealing
with the complex organizational problems. For this, talented persons
should be selected and proper training should be given to them.
- Technological and social changes : Rapid technological and social
changes are taking place in the business world. In India, such
developments are fast taking place along with the liberalization and
globalisation of business. Managers should be given proper training and
exposure in computer applications and information technology.
- Management obsolescence : Executive obsolescence occurs due to
mental deterioration and aging process. This can be corrected by
offering self-development opportunities to managers. In fact,
self-development must continue throughout the career of an executive.
- Complexity of business management : Business management is becoming
very complicated due to government legislations, market competition,
social pressures and consciousness among consumers. Well-trained and
matured managers are therefore required. Such managers are not available
easily. The best way is to train existing managers through management
development programmes.
(B) Methods of Management Development / Managerial Development
For management development, several methods / techniques are used.
These methods can be divided into two broad categories, namely,
- Internal or On the job methods, and
- External or Off the job methods.
(A) Internal Training Methods / On The Job Methods
- Coaching
: Coaching on the job coaching is a method by which a superior teaches
job knowledge and skills to a subordinate manager. He briefs the trainee
executive about what is expected of him and how it can be done. The
superior also checks the performance of his subordinate and guides him
to improve his shortfalls and deficiencies. The superior acts as a
friend and guide of his subordinate. Coaching method favours learning by
doing. Its effectiveness depends on the capacity and the interest taken
by the superior and also by the subordinate. The superior should adopt a
positive approach in the coaching process and help the subordinate in
achieving self-development. Coaching has certain limitations. For
example, a trainee manager cannot develop much beyond the limits of his
own superior's abilities. Similarly, the success of coaching method
depends on the interest and initiative taken by the trainee - manager.
- Counselling : Under this method, the subordinate wanting advice
approaches his superior. Counselling is provided in matters relating to
the job. However, on request from the subordinate, counselling may also
be offered on matters not directly related to the job. There is two-way
dialogue between the subordinate and the superior to find solution to
his problem. Counselling provides emotional stability to trainee -
subordinate.
- Understudy assignment : An understudy is a trainee-manager who is to
assume the full duties and responsibilities of the position currently
held by his superior, when the later leaves his post due to retirement,
transfer or promotion. Here, a departmental manager (head) selects one
of his suitable subordinates to become his understudy. As an
alternative, the personnel department may make the selection of
understudy. The departmental manager will guide him (i.e. understudy) to
learn his job and deal with the problems that confront the manager
daily. The understudy will learn the job of his superior through
observation and participation in the decision making.
He may be given specific problems to study and to make recommendations
for solving them. The understudy will be given wider exposure and an
opportunity to develop capacity to deal with difficult problems and
complex situations.
- Job Rotation : It involves transfer of executives from one job to
another. The aim of job rotation is to broaden the knowledge, skills and
outlook of executives. This method can be used in the case of
management trainee and also in the case of an existing manager due for
promotion. Job rotation method is also useful for providing variety of
job experience to managers.
Advantages of Job Rotation
- It brings all departments on the same footing as executives move from one department to other.
- Job rotation facilitates inter-departmental cooperation. New
procedures are introduced in departments along with the rotation of
managers.
- The benefit of wider exposure is available to trainee manager.
- There is absence of monotony in the training process due to job rotation.
Limitations of Job Rotation are:-
- The work of departments is affected due to frequent changes of executives for training purpose.
- The trainee manager finds it difficult to adjust himself to his new bosses.
- Even the executives are not in a position to have specialized knowledge and training in one particular branch of work.
- Frequent changes of position of executives may also affect their morale.
- Delegation : Delegation is one more internal method of management
development. The performance of subordinates may not improve unless
additional responsibility and authority are delegated to them. Making
the subordinates to achieve a particular target through delegation is
one way by which subordinates will learn to grow and develop
independently. They will develop leadership qualities and
decision-making skills, which are necessary for a good manager.
- Appointment as 'Assistant to' : A junior executive may be appointed
as 'Assistant to' senior executive for the purpose of training and
practical experience. Here, the junior executive is given exposure to
the job of senior executive and he teams new techniques while providing
assistance to his boss. This broadens his viewpoint and makes him ready
for future promotions. The superior executive also gets the benefit as
he can delegate some of his responsibilities to the assistant and also
acts as guide of his assistant.
- Membership of Committees : Inter-departmental committees are
normally created for bringing co-ordination in the activities of
different departments. Managers from different departments are taken on
such committees. Junior managers are also given membership of such
committees so as to give them a broader exposure to the viewpoints of
other departmental heads. Ad hoc committee of executives is also
constituted and is assigned a specific problem for study. Such commitee
assignments offer opportunity of training to junior executives, as they
have to study the problem in depth and make recommendations.
- Project Assignment : In the project assignment method, a trainee
manager is given a project that is closely related to the work of his
department. The project relates to specific problem faced by the
department. Here, the executive has to study the project on his own and
make recommendations for the consideration of the departmental head.
Such assignment provides valuable experience to the trainee and develops
problem-solving attitude, which is one essential requirement of an
executive.
- Promotions and Transfers : Promotions and transfers are two more
internal methods of management development. Promotion gives an
opportunity to a manager to acquire new skills required for the job at
the higher level. It motivates him for self-improvement. Transfer also
facilitates the broadening of viewpoint required for higher positions.
It gives an opportunity to work at different positions and develop.
(B) External Methods of Management Development / Off The job Methods
- Universities
and Colleges : The universities and colleges, now, provide facilities
of management education. Here, education is given through lectures,
discussions, home assignments, tests and examinations. In India, Mumbai
University (MU) has its Jamnalal Bajaj Institute of Management Studies
(JBIMS) for various management development courses. Colleges affiliated
to the Universities also conduct DBM, MBA and other management
development programmes for the executives from business sector.
Candidates working at managerial levels in companies are normally
selected for such training programmes.
- Management Institutions : Along with the universities and colleges,
there are management training institutions such as NITIE, Bombay
Management Association, and Productivity Councils and so on. These
institutes run special training courses for graduates interested in
management education and also orientation programmes for existing
managers from public and private sector enterprises. Companies can
depute their managers for short orientation courses and update the
knowledge and information of their managers in specific areas. Even
seminars, workshops and conferences are arranged for the training of
managers by various associations such as chambers of commerce and export
promotion councils.
- Role-playing : Role-playing has been defined as "A method of human
interaction, which involves realistic behavior in the imaginary
situations." It is particularly useful for learning human relations and
leadership training. Its objective is to raise the ability of trainee
manager while dealing with others. In the role playing, a conflict
situation is artificially created and two or more trainees are assigned
different roles to play. For example, a male employee may assume the
role of a female supervisor and the female supervisor may assume the
role of a male employee. Then, both may be given a typical work
situation and asked to respond as they expect others to do. Such role
playing results in better understanding among individuals. It helps to
promote interpersonal relations and attitude change.
- Case Study : Case study method was first developed by Christopher Langdell
at Harvard Law School. A case is a written account giving certain
details of the situation is relation to a specific matter. Such case
study may be related to any aspect of management such as production,
marketing, personnel, finance and so on. The case presented is always
incomplete. This means the solution to the problem is not provided. The
participants are supposed to identify the best available solution.
A small group of managers are asked to study the case in the fight of
theoretical study already completed and is followed by open discussion
in the presence of capable instructor, who can guide intelligent
discussion and analysis. There is nothing like one correct answer to the
case study.
Case study method has certain advantages like, (a) in-depth thinking
about the matter by managers, (b) more perception in situation and
greater respect for the opinions of others.
- Conferences and Seminars : Deputing officers for conferences and
seminars is a method available for management development. Various
matters are discussed systematically in such conferences and seminars.
This provides new information and knowledge to the managers. The
participants in such conferences and seminars are limited. As a result,
more persons get an opportunity to participate in such conferences for
self-development. Conferences may be directed or guided or may be for
consultation and finally for problem solving.
- Simulation : Here, an executive or trainee is given practical
training by creating situation / environment, which closely represents
the real life situation at the work place. For example, activities of an
organisation may be simulated and the trainee may be asked to make a
decision in support of those activities. The results of those decisions
are reported back to the trainee with an explanation. The report
illustrates what would have happened if that decision was taken. The
trainee teams from this feedback and improves his subsequent simulation.
- Management / Business Games : A variety of computer and non-computer
management / business games have been devised for training of managers.
This training method is used in management development. It is a type of
classroom method of training. The game is designed to represent real
life situation. Employees for managerial positions are put in an
exercise of actual decision-making. A problem is provided to them along
with all the necessary information and constraints. The employee is
asked to make a decision. The quality of this decision is judged by how
well the applicant has processed the information provided to him. The
processing of information is supposed to be guided by knowledge of the
goals and policies of the organisation. Even if mistake is made in the
game, the trainee can learn a lot out of his mistake. This avoids
possible mistakes while taking decisions for his company. This method
develops capacity to take rational decisions by managers.
- TV and Video Instructions : TV and Video instructions are used for
training and management development programmes. At present, programmes
on management problems are arranged on TV network regularly. Videotapes
are also available on management training. Books and periodicals are
published regularly on management. Audio-visual aids (film strips,
Video, tape recorders, TV, overhead projectors, etc.) are now used for
training of managers.
Question Bank On Human Resource Management and Development - HRM / HRD
- Explain the meaning, nature and features of human resource.
- Explain, in brief, the steps in the selection procedure.
- Explain the significance scientific selection of supervisory staff.
- State and explain the different methods of training of managerial personnel.
- What are the objectives and benefits of training of managers?
- Write short notes on:
- Recruitment and selection
- Sources of recruitment
- Meaning and objectives of employee training
- Advantages of training of employees
