BCom Notes Part I Business Human Resources and Personnel Management
If you want to view other notes of BCom part I. Click Here.
Human Resources and Personnel Management
The Personnel Process The essential and time-honored function of personnel department is to provide competent people for all positions in the business firm. The steps that are followed in the process are briefly explained as follows:
1. Determination of Needs
For this purpose job analysis becomes the first requirement. Job analysis involves inquiry into all the details of each job of the company that is to be filled up. Location of the job, its duties and responsibilities, working conditions, the salary, the promotion opportunities, and whether or not any training for the job is offered, are the things that are looked into. Job analysis practically makes a job description and helps in guiding the person responsible for making selection in determining the qualification, experience and health requirements of the conditions to be considered for the job.
2. Selection and Recruiting
The procedures for recruiting applicants vary depending upon the firm and the type of work. In usual cases generally they agree to follow:
Screening
Screening is usually carried through processing the applications blanks and preliminary interview. Each application or job letter is thoroughly examined in the light of the job to determine the suitability of the candidate. Preliminary interview helps in filtering out the correct persons.
Tests
Tests are carried to find out the proficiency and capability of the candidates. For this purpose there could be intelligence test, aptitude tests, and ability or achievement tests. This may include medical tests to determine physical fitness.
Main Interview
Applicants who clear above two stages are then invited to a personal or main interview. It involves the most careful and balanced judgment on the part of the manager, as upon this the human balance sheet of the enterprise depends.
3. Orientation and Training
Orientation
After the applicant has been hired he must be properly introduced to the policies of the company, to the job and the surrounding and to the people with whom he will work. The idea is to relive tension, minimize critical sensitivity and ease the adjustment in new environment.
Things Helpful in the Procedure of Orientation
- Lectures in the personnel department on history, producers, policies of the company.
- Movies, pamphlets and booklets, which cover company operations and services.
- A conducted tour of the factory of office.
- A personal introduction to fellow workers and new surroundings.
- Subjects Covered in An Orientation Program.
Whatever the method, the following types of subjects are usually covered:
1. Company history, products and major operations.
2. General company policies and regulations.
3. Relation of foremen and personnel department.
4. Rules and regulations regarding:
- Wages and wage payment
- Hours of work and overtime
- Safety and accidents
- Holidays and Vacations
- Methods of Reporting Tardiness and Absences
- Discipline and grievances
- Uniforms and badges
- Parking
5. Economic and recreational services available:
- Insurance plans
- Pensions
- Athletic and Social Activities
6. Opportunities
- Promotion and transfer
- Job stabilization
- Suggestion systems
Training
Employee training is the process of teaching and operating technical employers, how to develop their present jobs more efficiently. It aims at improving employee skill and abilities.
Companies that hope to stay competitive typically make huge commitments to employee training and development.
Methods or Types of Training
A variety of methods are available for employee training and development. Following are the various methods that can be used:
1. Training on the Job
This is the most universal method and makes the most lasting impression. Certain types of work lend themselves to training on the job, whereby the employees learn by doing the work under the supervision of an instructor.
2. Vestibule Training
This is the method in which the work situation is simulated in a separated area so that learning takes place away from day-to-day pressures of work. Many firms operate company schools to which new employees are sent for training. This is used when the work involves dangers or costs, which might lead to expensive mistakes.
3. Apprentice Training
Apprentice training is traditional in various trades, crafts and technical fields where proficiency is acquired after years of instruction by experts. It is a combination of class room lectures, special work area practice and actual work experience.
4. Internship
This provides for cooperation between schools and businesses with intermittent periods of time assigned to each. Outside experiences can well enhance the development of a new manager.
5. Class Room Teaching and Lectures
Training with industry or short lecture and demonstration courses to show supervisors how to develop better methods of handling human relationships and to rain subordinates.
6. Conference and Seminar Techniques
Here small groups are brought together to discuss problems, exchange ideas or be briefed on various situations. Participation in small groups of no more than fifteen is an excellent means of learning.
7. Psychodrama or Role Playing
This is the training in which executives learn by acting out what they should do in actial situations under the guidance of a trainer from the personnel department.
8. Job Rotation
At higher levels of an organization, management training may take place through job rotation. Position rotation or moving executives from one job to another so that they get to know the individual and total problems of a company. Assistant to promotions permit trainees to broaden their view point and background.
9. Outside Courses
These are used by many organizations that do not have the resources to do their own training. Outside courses in colleges, correspondence courses, trade association conferences and evening schools are also commonly used to educate executives.
10. Understudy Plans
This provides for an assistant to be assigned o a skilled worker or executive. By working directly under a particular man, the under study can learn the ropes and then take on the job when vacancy occur.
11. The Group Dynamics
Under this method, employees are organized into a squadron or group with a view to giving them broad idea and necessary skills on a number of jobs. This is applicable particularly in those cases where a large number of potential executives care to be trained up to fill different executive and managerial positions.
4. Performance Appraisal
Performance appraisal or evaluation makes the personnel manager estimate and understand the effectiveness and performance capability of an employee. This also helps him to find out to what extent the employee has made improvement in his work performance. Further performance appraisal can also guide the manager in correctly rewarding the employees, honestly allocating the human resources, fairly filling up the higher jobs and building the atmosphere of trust and confidence within the enterprise.
To the employee, performance appraisal provides a feedback to him that can greatly guide his future adjustment and greater preparedness to overcome his weaknesses.
5. Compensation
Compensation is the monetary reward and other benefits that are offered to employees. People should be paid or rewarded according to what they produce or how much risk they take. It is because compensation is real lubricant to work performance. Fair compensation to employees always pays in the long run. That is the reason good personnel manager always recommends a fair compensation to employees.
Compensations that are expected by employees today and which are included in the program are:
1. Fair wages
2. Continuous employment
3. Reasonable hours of work
4. Pleasant and safe working conditions
5. Future prospects
6. Feeling of contribution
6. Promotion
One of the important considerations in personnel policy is to device and work out the way that would assure promotion to deserving employees of the enterprise. The hope for earning promotion on the basis of their competency makes the employees work with greater devotion and sincerity. Good personnel managers do recognize it and take care in deciding this issue with fair justice. They know that attraction of good employees and their retention within the enterprise depends upon a formidable promotion policy.
7. Termination
The employees may retire from their jobs after attaining certain age or completing the terms of service. They may leave the job on their own accord or may be declared surplus by the management. These all virtually result in termination of the job. Such termination should always end with a happy note. The management in recognition of the service of their employees determines the retirement benefit in the shape of pension, provident fund and gratuity.
Trade Unions
Definition
Modern industrialization has given rise to great number of problems. There has come to be a clash between the interests of labor and organization, the former claiming higher wages and the latter higher profits. Today, laborers have come to realize that they can improve their conditions of work only through collective bargaining with the employees. Thus they combine themselves into Trade or labor unions.
The aim of the trade unions is thus to protect the interests of the workers by
1. Conserving the advantages already received.
2. Doing everything legally possible to obtain further the just and genuine benefits from the employers.
Function of Trade Unions
Trade unions assist labor in that they perform three types of functions.
a. Militant Function.
b. Fraternal Function.
c. Political Function.
(a)Militant Functions
The main function of the trade union is to fight for the basic rights and interests of its members. In doing this they offer the following benefits to the labor community.
1. Collective Bargaining
Labor has weak bargaining power as against his employer. A laborer sells his services as an individual while the employer buys them on a large scale. Labor is therefore in much greater competition for employment then the employers are for labor. If laborers do not combine themselves into trade unions they are likely to be taken advantage by the employers. Trade unions strengthens the bargaining power of labor through the introduction of what is called collective bargaining. Now instead of each worker negotiating with the employers on various demands, the trade unions bargain on behalf of them all. If their reasonable terms are not accepted, they curtail the supply of labor and resort to strikes boycotts or lockout etc.
2. Standardizing Wage Rate
Modern trade unions fight for the raising of standard wage rate. For that, they try to improve the efficiency of labor, (by standardizing conditions of work and fostering habits of honesty regularity etc) ensure that wages are raised up to marginal productivity level, restrict labor supply, increase labor demand and thereby seek to establish standard wage for a standard quality of work.
3. Job Security
For achieving this objective, seniority rights of workers, control over hiring of labor, grievance procedure for handling cases of discharge etc. are used as devices.
4. Improving Conditions of Work
Trade unions put pressure on the employers to provide workers with better conditions of work, sufficient recreation, standardized hours of work etc.
5. Limitation of Output
If a given number of laborers produce more than what they ought to, employment for labor will be reduced. Hence, output per worker is standardized by the unions.
(b) Fraternal Functions
Fraternal functions consist of mutual help for the welfare of the workers. In this context, trade unions offer the following benefits:
1. A Ministrant Association
Trade unions act as ministrant association and provide monetary protection to workers against temporary unemployment, sickness, accident etc. Some trade unions give loans and advances to their members for meeting their social obligations.
2. Professional Training
Trade unions also arrange for education and professional training of their members and as such assist them in improving their efficiency and skill.
3. Source of Information
Trade unions serve as a source of defusing labor information the workers. The workers are guided and advised by trade unions leaders who also defuse information by organizing of workers.
4. Insurance Facilities
Trade unions also arrange for insurance facilities against risks of accidents.
5. Legal Help
Trade unions help the laborers in legal proceedings at the court, in the disputes of laborers.
(c) Political Functions
Many trade unions fight elections to capture the government. In many countries, strong labor parties have grown up. We have some labor seats in the legislature.
Post a Comment