18IM751: HUMAN RESOURCE MANAGEMENT

Module - 1
INTRODUCTION:
1.1 Definition:
“HRM is concerned with the people dimensions in management. Since every organization is
made up of people, acquiring their services, developing their skills, motivating them to higher
levels of performance and ensuring that they continue to maintain their commitment to the
organization are essential to achieving organizational objectives. This is true, regardless of the
type of the organization – government, business, education, health, recreational, or social
action.”

MEANING OF HRM:
HRM is management function that helps managers to recruit, select, train and develop members
for an organization. Obviously HRM is concerned with the people’s dimensions in organizations.
HRM refers to set of programs, functions, and activities designed and carried out

Core elements of HRM

 Peop le: Organizations mean people. It is the people who staff and manage organizations.
 Management: HRM involves application of management functions and principles for
acquisitioning, developing, maintaining and remunerating employees in organizations.
 Integration & Con sisten cy: Decisions regarding people must be integrated and
consistent.
 Influ ence: Decisions must influence the effectiveness of organization resulting into
betterment of services to customers in the form of high quality products supplied at reasonable
cost.
 Appli cabi lity: HRM principles are applicable to business as well as non-business
organizations too, such as education, health, recreation and the like.

1.2 OBJECTIVES OF HRM:

1. Societal Objectives: To be ethically and socially responsible to the needs and challenges
of the society while minimizing the negative impact of such demands upon the organization.
2. Organi zational Objectives: To recognize the role of HRM in bringing about
organizational effectiveness. HRM is only means to achieve to assist the organization with its
primary objectives.
3. Functional Objectives: To maintain department’s contribution and level of services at a
level appropriate to the organization’s needs.
4. Personal Objectives: To assist employees in achieving their personal goals, at least in so
far as these goals enhance the individual’s contribution to the organization. This is necessary to
maintain employee performance and satisfaction for the purpose of maintaining, retaining and
motivating the employees in the organization.

1.3 SCOPE OF HRM:

From Entry to the Exit of an employee in the organization
Scope of HRM can be described based on the following activities of HRM. Based on these
activities we can summarize the scope of HRM into 7 different categories as mentioned below
after the activities. Lets check out both of them.
HRM Activities –
1. HR Planning
2. Job Analysis
3. Job Design
4. Recruitment & Selection
5. Orientation & Placement
6. Training & Development
7. Performance Appraisals
8. Job Evaluation
9. Employee and Executive Remuneration
10. Motivation
11. Communication
12. Welfare
13. Safety & Health
14. Industrial Relations

7 Categori es of Scope of HRM

1. Introduction to HRM
2. Employee Hiring
3. Employee and Executive Remuneration
4. Employee Motivation
5. Employee Maintenance
6. Industrial Relations
7. Prospects of HRM

1.4 ROLE OF HRM

1. Advisory Role: HRM advises management on the solutions to any problems affecting
people, personnel policies and procedures.
a. Personnel Policies: Organization Structure, Social Responsibility, Employment Terms &
Conditions, Compensation, Career & Promotion, Training & Development and Industrial
Relations.
b. Personnel Procedures: Relating to manpower planning procedures, recruitment and
selection procedures, and employment procedures, training procedures, management
development procedures, performance appraisal procedures, compensation procedures, industrial
relations procedures and health and safety procedures.
2. Functional Role: The personnel function interprets and helps to communicate personnel
policies. It provides guidance to managers, which will ensure that agreed policies are
implemented.
3. Service Role: Personnel function provides services that need to be carried out by full time
specialists. These services constitute the main activities carried out by personnel departments and
involve the implementation of the policies and procedures described above.

Role of HR Managers (Today)

1. Humanitarian Role: Reminding moral and ethical obligations to employees
2. Counselor: Consultations to employees about marital, health, mental, physical and career
problems.
3. Mediator: Playing the role of a peacemaker during disputes, conflicts between individuals
and groups and management.
4. Spokesman: To represent of the company because he has better overall picture of his
company’s operations.
5. Problem Solver: Solving problems of overall human resource management and long-term
organizational planning.
6. Change Agent: Introducing and implementing institutional changes and installing
organizational development programs
7. Management of Manpower Resources: Broadly concerned with leadership both in the
group and individual relationships and labor-management relations.

Role of HR Managers (Future)

1. Protection and enhancement of human and non-human resources
2. Finding the best way of using people to accomplish organizational goals
3. Improve organizational performance
4. Integration of techniques of information technology with the human resources
5. Utilizing behavioral scientists in the best way for his people
6. Meeting challenges of increasing organizational effectiveness
7. Managing diverse workforce

1.5 FUNCTIONS OF HRM ALONG WITH OBJECTIVES

HRM Objectives Supporting HRM Functions

Social Objectives (3) Legal Compliance

Benefits
Union Management Relations

Organizational Objectives (7) Human Resource Planning

Employee Relations

Recruitment & Selection

Training & Development
Performance Appraisals
Placement & Orientation
Employee Assessment

Functional Objectives (3) Performance Appraisals

Placement & Orientation
Employee Assessment

Personal Objectives (5) Training & Development

 Performance Appraisals
Placement & Orientation
Compensation

Employee Assessment

Managerial Functions of HRM

1. Planning: Plan and research about wage trends, labor market conditions, union demands and
other personnel benefits. Forecasting manpower needs etc.
2. Organizing: Organizing manpower and material resources by creating authorities and
responsibilities for the achievement of organizational goals and objectives.
3. Staffing: Recruitment & Selection
4. Directing: Issuance of orders and instructions, providing guidance and motivation of
employees to follow the path laid-down.
5. Controlling: Regulating personnel activities and policies according to plans. Observations
and comparisons of deviations

Operational Fun ctio ns of HRM

1. Procurement: Planning, Recruitment and Selection, Induction and Placement
2. Development: Training, Development, Career planning and counseling.
3. Compensation: Wage and Salary determination and administration
4. Integration: Integration of human resources with organization.
5. Maintenance: Sustaining and improving working conditions, retentions, employee
communication
6. Separations: Managing separations caused by resignations, terminations, lay offs, death,
medical sickness etc.

1.6 CHALLENGES OF HRM IN INDIAN ECONOMY or CHALLENGES OF

MODERN MAN AGEMENT
1. Globali zation: - Growing internationalization of business has its impact on HRM in terms
of problems of unfamiliar laws, languages, practices, competitions, attitudes, management styles,
work ethics and more. HR managers have a challenge to deal with more functions, more
heterogeneous functions and more involvement in employee’s personal life.
2. Corporat e Re-organizat ions: - Reorganization relates to mergers and acquisitions, joint
ventures, take over, internal restructuring of organizations. In these situations, it is difficult to
imagine circumstances that pose a greater challenge for HRM than reorganizations itself. It is a
challenge to manage employees’ anxiety, uncertainties, insecurities and fears during these
dynamic trends.
3. New Organizat io nal for ms: - The basic challenge to HRM comes from the changing
character of competitions. The competition is not between individual firms but between
constellations of firm. Major companies are operating through a complex web of strategic
alliances, forgings with local suppliers, etc. These relationships give birth to completely new
forms of organizational structure, which highly depend upon a regular exchange of people and
information. The challenge for HRM is to cope with the implications of these newly networked
relations more and more, in place of more comfortable hierarchical relationships that existed
within the organizations for ages in the past.
4. Changing Demographics of Workforce: - Changes in workforce are largely
reflected by dual career couples, large chunk of young blood between age old superannuating
employees, working mothers, more educated and aware workers etc. These dynamic workforces
have their own implications for HR managers and from HRM point of view is a true challenge to
handle.
5. Changed emp loyee expectation s: - With the changes in workforce demographics,
employee expectations and attitudes have also transformed. Traditional allurements like job
security, house, and remunerations are not much attractive today, rather employees are
demanding empowerment and equality with management. Hence it is a challenge for HRM to
redesign the profile of workers, and discover new methods of hiring, training, remunerating and
motivating employees.
6. New Indu st rial Relation s App roach: - In today’s dynamic world, even unions have
understood that strikes and militancy have lost their relevance and unions are greatly affected by
it. The trade union membership has fallen drastically worldwide and the future of labor
movement is in danger. The challenge before HRM is to adopt a proactive industrial relations
approach which should enable HR specialist to look into challenges unfolding in the future and
to be prepared to convert them into opportunities.
7. Renewed Peop le Focus: - The need of today’s world and business is the people’s
approach. The structure, strategy, systems approach which worked in post war era is no more
relevant in today’s economic environment which is characterized by over capacities and intense
competition. The challenge of HR manager is to focus on people and make them justifiable and
sustainable.
8. Managing the Managers: - Managers are unique tribe in any society, they believe they
are class apart. They demand decision-making, bossism, and operational freedom. However in
the post liberalization era, freedom given to managers is grossly misused to get rid of talented
and hard working juniors. The challenge of HRM is how to manage this tribe? How to make
them realize that the freedom given to them is to enable them make quick decisions in the
interest of the organization and not to resort to witch-hunting.
9. Weaker Society interest s: - Another challenge for HRM is to protect the interest of
weaker sections of society. The dramatic increase of women workers, minorities and other
backward communities in the workforce has resulted in the need for organizations to reexamine
their policies, practices and values. In the name of global competition, productivity and quality
the interests of the society around should not be sacrificed. It is a challenge of today’s HR
managers to see that these weaker sections are neither denied their rightful jobs nor are
discriminated against while in service.
10. Cont ribution to the success of organi zations: - The biggest challenge to an HR
manager is to make all employees contribute to the success of the organization in an ethical and
socially responsible way. Because society’s well being to a large extent depends on its
organizations.
 HUMAN RESOURCE PLANNING
2.1 HUMAN RESOURCE PLANNING (H R P)
Definition 1: - Need, Availability, Supply=Demand
“HRP includes estimation of how many qualified people are necessary to carry out the assigned
activities, how many people will be available, and what, if anything, must be done to ensure
personnel supply equals personnel demand at the appropriate point in the future.”
Definition 2: - Right numbers, Capability, Organization Objectives
“HRP is a Process, by which an organization ensures that it has the right number and kind of
people at the right place, at the right time, capable of effectively and efficiently completing those
tasks that will help the organization achieve its overall objectives.”
Definition 3: - Translation of objectives into HR numbers “HRP is a process of translating
organizational objectives and plans into the number of workers needed to meet those objectives.”

MEANING / PURPOSE O F HRP

 In simple words HRP is understood as the process of forecasting an organization’s future
demand for and supply of the right type of people in the right numbers.
 It is only after HRP is done, that the company can initiate and plan the recruitment and
selection process.
 HRP is a sub-system in the total organizational planning.
 HRP facilitates the realization of the company’s objectives by providing right type and right
number of personnel.
 HRP is important because without a clear-cut manpower planning, estimation of a
organization’s human resource need is reduced to mere guesswork.

2.2 USES & IMPORTANCE OF HRP

Forecast futu re personn el need s: To avoid the situations of surplus or deficiency of
manpower in future, it is important to plan your manpower in advance. For this purpose a proper
forecasting of futures business needs helps you to ascertain our future manpower needs. From
this angle, HRP plays an important role to predict the right size of manpower in the organization.
Cope with change: HRP enables an enterprise to cope with changes in competitive forces,
markets, technology, products and government regulations. Such changes generate changes in
job content, skills demands and number of human resources required.

Creating high ly talented personnel: Since jobs are becoming highly intellectual and
incumbents getting vastly professionalized, HRP helps prevent shortages of labor caused by
attritions. Further technology changes would further upgrade or degrade jobs and create
manpower shortages. In these situations only accurate human resource planning can help to meet
the resource requirements. Further HRP is also an answer to the problems of succession
planning.
Protection of weaker section s : A well-conceived personnel planning would also help to
protect the interests of the SC/ST, physically handicapped, children of socially oppressed and
backward classes who enjoy a certain percentage of employments notwithstanding the
constitutional provisions of equal opportunity for all.
International st rategi es: International expansion strategies largely depend upon effective
HRP. With growing trends towards global operations, the need for HRP further becomes more
important as the need to integrate HRP more closely into the organization keeps growing. This is
also because the process of meeting staffing needs from foreign countries grows in a complex
manner. Foundat ion o f per sonnel funct ions: HRP provides essential information for
designing and implementing personnel functions such as recruitment, selection, personnel
development, training and development etc.
Increasin g invest ment s in HR: Another importance is the investment that an organization
makes in human capital. It is important that employees are used effectively throughout their
careers. Because human assets can increase the organization value tremendously as opposed to
physical assets
Resi stance to change & move: The growing resistance towards change and move, self
evaluation, loyalty and dedication making it more difficult to assume that organization can move
its employees everywhere. Here HRP becomes very important and needs the resources to be
planned carefully.
Other benefits: Following are the other benefits of HRP.

1. Upper management has a better view of HR dimensions of business

2. Management can anticipate imbalances before they become unmanageable and
expensive.
3. More time is provided to locate talent
4. Better opportunities exists to include women and minorities in future growth plans
5. Better planning of assignments to develop managers
6. Major and successful demands on local labor markets can be made.
2.3 HRP SYSTEM
HRP System as such includes following elements or sets for planning
 Overall Organization Objectives
 Business Environment
 Forecasting Manpower Needs
 Assessing Manpower Supply
 Matching Manpower Demand-Supply factors
Based on these elements we can draw “HRP System Architecture” as below.
Human Resource planning

Business Environment

Organization Objectives & Goals

Manpower Forecast Manpower Supply Assessment

Manpower Programming

Manpower Implementation

Control & Manpower

Evaluation

Surplus Manpower Shortage of Manpower

Figure 2.1 Human resource planning

2.4 HRP PROCESS
Organi zational Objectives & Polici es:
The objectives of HR plan must be derived from organizational objectives like specific
requirements of numbers and characteristics of employees etc. HRP needs to sub-serve the
overall objectives by ensuring availability and utilization of human resources. Specific policies
need to be formulated to address the following decisions.

 Internal Hiring or External Hiring

 Training & Development plans
 Union Constraints
 Job enrichment issues
 Rightsizing organization
 Automation needs
 Continuous availability of adaptive and flexible workforce

2.5 Manpower Demand Forecasting:

It is the process of estimating the future quantity and quality of people required.
The basis should be annual budget and long term corporate plans
Demand forecasting should be based on following factors.

Internal Factors:
 Budget constraints
 Production levels
 New products and services
 Organizational structure
 Employee separation
External Factors:
 Competition environment
 Economic climate
 Laws and regulatory bodies
 Technology changes
 Social Factors
Reasons for Manpower Demand Forecasting:
 To quantify jobs
 To determine the Staff-mix
 To assess staffing levels and avoid unnecessary costs
 Prevent shortages of people
 Monitor compliances of legal requirements with regards to reservations

2.6 Manpower Forecasting Techniques:

Management Judgment: In this techniques managers across all the levels decide the forecast on
their own judgment. This can be bottom-up or top-down approach and judgments can be
reviewed across departments, divisions and top management can conclude on final numbers of
manpower required.

Ration-Trend Analysis: This technique involves studying past ratios, and forecasting future
ratios making some allowance for changes in the organization or its methods.
Work Study Techniques: It is possible when work measurement to calculate the length of
operations and the amount of manpower required. The starting point can be production budget,
followed by standard hours, output per hour; man-hours required etc could be computed.
Delphi Techniques: This technique solicits estimates from a group of experts, and HRP experts
normally act as intermediaries, summarizes various responses and report the findings back to
experts.

Flow Models: This technique involves the flow of following components. Determine the time
required, Establish categories, Count annual movements, Estimate probable transitions. Here
demand is a function of replacing those who make a transition.

Manpower Supply Forecasting:

This process measures the number of people likely to be available from within and outside the
organization after making allowance for absenteeism, internal movements and promotions,
wastages, changes in hours and other conditions of work.

Reasons for Manpower Supply Forecasting:

 Clarify Staff-mixes exist in the future

 Assess existing staff levels
 Prevent shortages
 Monitor expected future compliance of legal requirements of job reservations
Supply Analysis covers:
Existing Human Resources: HR Audits facilitate analysis of existing employees with skills and
abilities. The existing employees can be categorized as skills inventories (non-managers) and
managerial inventories (managers)
Skill inventory would include the following;

 Personal data
 Skills
 Special Qualifications
 Salary
 Job History
 Company data
 Capabilities
 Special preferences
Management inventories would include the following
 Work History
 Strengths
 Weaknesses
 Promotion Potential
 Career Goals
 Personal Data
 Number and Types of Subordinates
 Total Budget Managed
 Previous Management Duties
Internal Supply:
Internal supply techniques help to assess the following

 Inflows and outflows (transfers, promotions, separations, resignations, retirements etc.)

 Turnover rate (No. Of separations p.a. / Average employees p.a. X 100)
 Conditions of work (working hours, overtime, etc.)
 Absenteeism (leaves, absences)
 Productivity level
 Job movements (Job rotations or cross functional utilizations)
External Supply:
External sources are required for following reasons

 New blood,
 New experiences
 Replenish lost personnel
 Organizational growth
 Diversification
External sources can be colleges and universities, consultants, competitors and unsolicited
applications.
HR Plan Implementation: -
A series of action programs are initiated as a part of HR plan implementation as under.
Recruit ment & Selection : Employees are hired against the job vacancies. Based on the
manpower demand and supply forecasts made, hiring of employees is initiated based on supply
forecasts. For this internal and external sources of manpower are utilized. A formal selection
board is established to interview and select the best of the candidates for the required vacancies.
Finally the selected employees also need to be placed on proper jobs. Here some companies
recruit employees for specific jobs while others recruit fresh trainees in large number and train
them for future manpower needs.
Training and Develop ment: The training and development program is charted out to cover
the number of trainees, existing staff etc. The programs also cover the identification of resource
personnel for conducting development program, frequency of training and development
programs and budget allocation.
Ret raining and Red ep loyment; New skills are to be imparted to existing staff when
technology changes or product line discontinued. Employees need to be redeployed to other
departments where they could be gainfully employed.
Retention Plan: Retention plans cover actions, which would reduce avoidable separations of
employees. Using compensation plans, performance appraisals, avoiding conflicts, providing
green pastures etc, can do this.
Downsi zing p lans: Where there is surplus workforce trimming of labor force will be
necessary. For these identifying and managing redundancies is very essential.

Managerial Succession Planning; Methods of managerial succession plans may vary.

Most successful programs seem to include top managements involvement and commitment,
high-level review of succession plans, formal performance assessment and potential assessment
and written development plans for individuals. A typical succession planning involves following
activities.

 Analysis of demand for managers and professionals

 Audit of existing executives
 Projection of future likely supply from internal and external sources
 Individual career path planning
 Career counseling
 Accelerated promotions
 Performance related training and development
 Strategic recruitment
Control & Evaluation of HRP:
HR Plan must also clarify responsibilities for control and establish reporting procedures, which
will enable achievements to be monitored against the plan. The HR Plan should include budgets,
targets and standards. These plans may simply be reports on the numbers employed, recruited
against targets etc.

2.7 JOB ANALYSIS

JOB:
“Job is a ‘group of tasks to be performed everyday.”
JOB ANALYSIS
Defin ition 1: (Process of Collecting Inf ormation)
“Job Analysis is a process of studying and collecting information relating to operations and
responsibilities of a specific job. The immediate products of this analysis are ‘Job Description’
and ‘Job Specifications’.”
Defin ition 2: (Systematic Exploration of Activities)
“Job Analysis is a systematic exploration of activities within a job. It is a basic technical
procedure that is used to define duties and responsibilities and accountabilities of the job.”
Defin ition 3: (Identif ying Job Requi rements)
“Job is a collection of tasks that can be performed by a single employee to contribute to the
production of some product or service, provided by the organization. Each job has certain ability
requirements (as well as certain rewards) associated with it. Job Analysis is a process used to
identify these requirements.”
MEANING O F JOB ANALYS IS
Job Analysis is a process of collecting information about a job. The process of job analysis
results into two sets of data.
 Job Description
 Job Specification
As a result Job analysis involves the following steps in a logical order.
Steps of Job Anal ysi s
1. Collecting and recording job information
2. Checking the job information for accuracy
3. Writing job description based on information collected to determine the skills, knowledge,
abilities and activities required
4. Updating and upgrading this information
PURPOSE O F JOB ANALYSIS :
 Human Resou rce Planning (HRP): - The numbers and types of personnel are
determined by the jobs, which need to be staffed. Job related information in the form of Job
Analysis serves this purpose or use.
 Recruit ment & Selecti on: - Recruitment precedes job analysis. It helps HR to locate
places to obtain employees. It also helps in better continuity and planning in staffing in the
organization. Also selecting a good candidate also requires detailed job information. Because the
objective of hiring is to match the right candidate for right job
 Training & Develop ment: Training and development programs can be designed
depending upon job requirement and analysis. Selection of trainees is also facilitated by job
analysis.
 Job Evaluation: Job evaluation means determination of relative worth of each job for
the purpose of establishing wage and salary credentials. This is possible with the help of job
description and specifications; i.e. Job Analysis.
 Remun eration: Job analysis also helps in determining wage and salary for all jobs.
 Performance App rai sal: Performance appraisal, assessments, rewards, promotions, is
facilitated by job analysis by way of fixing standards of job performance.
 Personnel In formation: Job analysis is vital for building personnel information
systems and processes for improving administrative efficiency and providing decision support.
 Safety & H ealth: Job Analysis helps to uncover hazardous conditions and unhealthy
environmental factors so that corrective measures can be taken to minimize and avoid possibility
of human injury.
PROCESS OF JOB ANALYSIS
Process 1: Strategic Choices
Process 2: Collecting Information
Process 3: Processing Information
Process 4: Job Description
Process 5: Job Specification
Strategic Choi ces: -
Extent of involvem ent of em ployees: Extent of employee involvement is a debatable
point. Too much involvement may result in bias in favor of a job in terms of inflating duties and
responsibilities. Too less involvement leads to suspicion about the motives behind the job.
Besides it may also lead to inaccurate information. Hence extent of involvement depends on the
needs of the organization and employee.
Level of detail s of job analysi s: The nature of jobs being analyzed determines the level of
details in job analysis. If the purpose were for training programs or assessing the worth of job,
levels of details required would be great. If the purpose is just clarification the details required
would be less.
Tim ing and frequency of Job Anal ysis: When do you do Job Analysis?
 Initial stage, for new organization
 New Job is created
 Changes in Job, Technology and Processes
 Deficiencies and Disparities in Job
 New compensation plan is introduced
 Updating and upgrading is required.
Past-ori ented an d future-orient ed Job Analysi s: For rapidly changing organization
more future oriented approach would be desired. For traditional organizations past oriented
analysis would be required. However more future oriented analysis may be derived based on past
data.
Sources of Job Data: For job analysis number of human and non-human sources is available
besides jobholder himself. Following can be sources of data available for job analysis.
Non-Human Sou rces Human Sou rces
Existing job descriptions and specifications Job Analysis
Equipment maintenance records Job Incumbents
Equipment design blueprints Supervisors
Architectural blueprints of work area Job Experts
Films of employee working
Training manuals and materials
Magazines, newspapers, literatures

Collecting Information: -
Information collection is done on the basis of following 3 parameters
Types of Data for Job Analysis:
 Work Activities (Tasks details)
 Interface with other jobs and equipments (Procedures, Behaviors, Movements)
 Machines, Tools, Equipments and Work Aids (List, Materials, Products, Services)
 Job Context (Physical, Social, Organizational, Work schedule)
 Personal Requirement (Skills, Education, Training, Experience)
Methods of Data Collection:
 Observation
 Interview
 Questionnaires
 Checklists
 Technical Conference
 Diary Methods
Who to Collect Data?
 Trained Job Analysts
 Supervisors
 Job Incumbents

Processing Information: -
Once the job information is collected it needs to be processed, so that it would be useful in
various personnel functions. Specifically job related data would be useful to prepare job
description and specifications, which form the next two processes of job analysis.
METHODS OF DATA CO LLECTION:
Observation: Job Analyst carefully observes the jobholder and records the information in
terms of what, how the job is done and how much time is taken. It is a simple and accurate
method, but is also time consuming and inapplicable to jobs involving mental activities and
unobservable job cycles. The analysts must be fully trained observers.
Interview: In this analyst interviews the jobholders, his supervisors to elicit information. It can
be Structured or Unstructured Interview. Again this is also a time consuming method in case of
large organizations. Plus there is also a problem of bias.
Questionn aires: A standard questionnaire is given to jobholder about his job, which can be
filled and given back to supervisors or job analysts. The questionnaire may contain job title,
jobholder’s name, managers name, reporting staff, description of job, list of main duties and
responsibilities etc. It is useful in large number of staffs and less time consuming. However the
accuracy of information leaves much to be desired.
Checkli st s: It is more similar to questionnaire but the response sheet contains fewer subjective
judgments and tends to be either yes or no variety. Preparation of checklist is a challenging job
itself.
Technical Conference: Here a conference of supervisors is used. The analysts initiate the
discussions providing job details. However this method lacks accuracy.
Diary Methods: In this method jobholder is required to note down their activities day by day
in their diary. If done faithfully this technique is accurate and eliminates errors caused by
memory lapses etc.
Quantitative Methods of Job Data Collection: -
Position Analysis Questionnai re (PAQ): -
PAQ is a highly specialized instrument for analyzing any job in terms of employee activities.
The PAQ contains 194 job elements on which job is created depending on the degree to which an
element is present. These elements are grouped together into 6 categories.
1. U – Usability / Use of Job
2. I – Importance of Job
3. T – Time
4. P – Possibility of Occurrence of Job
5. A – Applicability of Job
6. S – Specialty Tasks of Job
The primary advantage of PAQ is that it can be used to analyze almost every job. This analysis
provides a comparison of a specific job with other job classifications, particularly for selection
and remuneration purposes. However PAQ needs to be completed by trained job analysts only
rather than incumbents.
Management Position Description Questionnai re (MPDQ): -
Highly structured questionnaire, containing 208 elements relating to managerial responsibilities,
demand, restrictions and other position characteristics These 208 elements are grouped under 13
categories.
PAQ and MPDQ yield st andardized infor mat io n about t he worker and t he jo b.
Functional Job Analysi s: -
It is a worker orient ed job analyt ica l approach, which at t empt s to descr ibe t he
who le per son on t he jo b.
BARRIERS OF JOB ANALYSIS
 Support from Top Management
 Single means and source, reliance on single method rather than combination
 No Training or Motivation to Jobholders
 Activities and Data may be Distorted
2.8 JOB DESCRIPTION
“Job Description implies objective listing of the job title, tasks, and responsibilities involved in a
job.”
Job description is a word picture in writing of the duties, responsibilities and organizational
relationships that constitutes a given job or position. It defines continuing work assignment and a
scope of responsibility that are sufficiently different from those of the other jobs to warrant a
specific title. Job description is a broad statement of purpose, scope, duties and responsibilities of
a particular job.
Contents of Job Description
1. Job Identification
2. Job Summary
3. Job Duties and Responsibilities
4. Supervision specification
5. Machines, tools and materials
6. Work conditions
7. Work hazards
8. Definition of unusual terms
Format of Job Description
 Job Title
 Region/Location
 Department
 Reporting to (Operational and Managerial)
 Objective
 Principal duties and responsibilities
Featu res of Good Job Description
1. Up to date
2. Proper Job Title
3. Comprehensive Job Summary
4. Clear duties and responsibilities
5. Easily understandable
6. State job requirements
7. Specify reporting relationships
8. Showcase degrees of difficulties
9. Indicates opportunities for career development
10. Offer bird’s-eye-view of primary responsibilities
2.9 JOB SPECIFICATIONS

“Job Specification involves listing of employee qualifications, skills and abilities required to
meet the job description. These specifications are needed to do job satisfactorily.”
In other words it is a statement of minimum and acceptable human qualities necessary to perform
job properly. Job specifications seeks to indicate what kind of persons may be expected to most
closely approximate the role requirements and thus it is basically concerned with matters of
selection, screening and placement and is intended to serve as a guide in hiring.
Contents of Job Specifications
1. Physical Characteristics
2. Psychological characteristics
3. Personal characteristics
4. Responsibilities
5. Demographic features
Further the job specifications can be divided into three broad categories
Essential Attributes
Desirable Attributes
Contra-Indicators – indicators hampering the success of job
JOB EVALUATION
Job Evaluation involves determination of relative worth of each job for the purpose of
establishing wage and salary differentials. Relative worth is determined mainly on the basis of
job description and job specification only. Job Evaluation helps to determine wages and salary
grades for all jobs. Employees need to be compensated depending on the grades of jobs which
they occupy. Remuneration also involves fringe benefits, bonus and other benefits. Clearly
remuneration must be based on the relative worth of each job. Ignoring this basic principle
results in inequitable compensation. A perception of inequity is a sure way of de-motivating an
employee.
Job evaluation is a process of analyzing and assessing the various jobs systematically to ascertain
their relative worth in an organization.
Jobs are evaluated on the basis of content, placed in order of importance. This establishes Job
Hierarchies, which is a purpose of fixation of satisfactory wage differentials among various jobs.
Jobs are ranked (not jobholders)
Scope of Job Evaluation
The job evaluation is done for the purpose of wage and salary differentials, demand for and
supply of labor, ability to pay, industrial parity, collective bargaining and the like.
Process of Job Evaluation:
1. Defining objectives of job evaluation
a. Identify jobs to be evaluated (Benchmark jobs or all jobs)
b. Who should evaluate job?
c. What training do the evaluators need?
d. How much time involved?
e. What are the criteria for evaluation?
f. Methods of evaluation to be used
2. Wage Survey
3. Employee Classification
4. Establishing wage and salary differentials.
Methods of Job Evaluation
Analytical Methods
 Point Ranking Methods: Different factors are selected for different jobs with
accompanying differences in degrees and points. Factor Comparison Method: The important
factors are selected which can be assumed to be common to all jobs. Each of these factors are
then ranked with other jobs. The worth of the job is then taken by adding together all the point
values.

Non-Analytical Methods
 Ranking Method: Jobs are ranked on the basis of its title or contents. Job is not broken
down into factors etc.
 Job Grading Method: It is based on the job as a whole and the differentiation is made on
the basis of job classes and grades. In this method it is important to form a grade description to
cover discernible differences in skills, responsibilities and other characteristics.
Pitfalls of Job Evaluation:
 Encourages employees on how to advance in position when there may be limited
opportunities for enhancement as a result of downsizing.
 It promotes internal focus instead of customer orientation
 Not suitable for forward looking organizations, which has trimmed multiple job titles into
two or three broad jobs.
JOB DESIGN
The Logical Sequence to Job Analysis is Job Design.
Defin ition 1: Integration of work, re wards and qualif ication
“Job Design integrates work content (tasks, functions, relationships), the rewards and
qualifications required including skills, knowledge and abilities for each job in a way that meets
the needs of employees and the organization.”
Steps in Job Desi gn: -
1. Specification of Individual Tasks
2. Specification of Methods of Tasks Performance
3. Combination of Tasks into Specific Jobs to be assigned to individuals
Factors affecting Job Design: -
Organi zational factors:
 Characteristics of Tasks (Planning, Execution and Controlling of Task)
 Work Flow (Process Sequences)
 Ergonomics (Time & Motion Study)
 Work Practices (Set of ways of performing tasks)
Envi ron mental Factors:
 Employee Abilities and Availability
 Social and Cultural Expectations
Behavioral Elements:
 Feedback
 Autonomy
 Use of Abilities
 Variety
TECH NIQ UES OF JOB DES IGN: -
Work Simp li fication: Job is simplified or specialized. The job is broken down into small
parts and each part is assigned to an individual. To be more specific, work simplification is
mechanical pacing of work, repetitive work processes, working only on one part of a product,
predetermining tools and techniques, restricting interaction amongst employees, few skills
requirement. Work simplification is used when jobs are not specialized.
Job Rotation: When incumbents become bore of routine jobs, job rotation is an answer to it.
Here jobs remain unchanged, but the incumbents shift from one job to another. On the positive
side, it increases the intrinsic reward potential of a job because of different skills and
abilities needed to perform it. Workers become more competent in several jobs, know variety
of jobs and improve the self-image, personal growth. Further the worker becomes more valuable
to the organization. Periodic job changes can improve interdepartmental cooperation. On the
negative side, it may not be much enthusiastic or efficiency may not be more. Besides jobs may
not improve the relationships between task, while activities and objectives remain unchanged.
Further training costs also rise and it can also de-motivate intelligent and ambitious trainees who
seek specific responsibilities in their chosen specialties.
Job Enlargement: It means expanding the number of tasks, or duties assigned to a given
job. Job enlargement is naturally opposite to work simplification. Adding more tasks or duties to
a job does not mean that new skills and abilities are needed. There is only horizontal expansion.
It is with same skills taking additional responsibilities like extending working hours etc. Job
enlargement may involve breaking up of the existing work system and redesigning a new work
system. For this employees also need to be trained to adjust to the new system. Job enlargement
is said to contribute to employee motivation but the claim is not validated in practice.
Benefits of Job Enlargement:
1. Task Variety
2. Meaningful Work Modules
3. Full Ability Utilization
4. Worker Paced Control
5. Meaningful Performance Feedback
Disadvantages of Job Enlargement
1. High Training Costs
2. Redesigning existing work system required
3. Productivity may not increase necessarily
4. Workload increases
5. Unions demand pay–hike
6. Jobs may still remain boring and routine
Job En ri chment: Job enrichment is improvisation of both tasks efficiency and human
satisfaction by building into people’s jobs, quite specifically, greater scope for personal
achievement and recognition, more challenging and responsible work and more opportunity for
individual advancement and growth. An enriched job will have more responsibility, more
autonomy (vertical enrichment), more variety of tasks (horizontal enrichment) and more growth
opportunities. The employee does more planning and controlling with less supervision but more
self-evaluation. In other words, transferring some of the supervisor’s tasks to the employee and
making his job enriched.
Benefits of Job en ri ch ment
1. It benefits employee and organization in terms of increased motivation, performance,
satisfaction, job involvement and reduced absenteeism.
2. Additional features in job meet certain psychological needs of jobholders due to skill variety,
identity, significance of job etc.
3. It also adds to employee self-esteem and self-control.
4. Job enrichment gives status to jobholder and acts as a strong satisfier in one’s life.
5. Job enrichment stimulates improvements in other areas of organization.
6. Empowerment is a by-product of job enrichment. It means passing on more authority and
responsibility.
Demerit s of Job En rich ment
1. Lazy employees may not be able to take additional responsibilities and power. It won’t fetch
the desired results for an employee who is not attentive towards his job.
2. Unions resistance, increased cost of design and implementation and limited research on long
term effect of job enrichment are some of the other demerits.
3. Job enrichment itself might not be a great motivator since it is job-intrinsic factor. As per the
two-factor motivation theory, job enrichment is not enough. It should be preceded by hygienic
factors etc.
4. Job enrichment assumes that workers want more responsibilities and those workers who are
motivated by less responsibility, job enrichment surely de-motivates them
5. Workers participation may affect the enrichment process itself.
6. Change is difficult to implement and is always resisted as job enrichment brings in a changes
the responsibility.
Autonomou s of Self-Di rect ed Teams: Empowerment results in self-directed work
teams. A self –directed team is an intact group of employees responsible for whole work
segment, they work together, handle day-to-day problems, plan and control, and are highly
effective teams.
High Performance Work Design: Improving performance in an environment where
positive and demanding goals are set leads to high performance work design. It starts from the
principle of autonomous groups working and developing an approach, which enables group to
work effectively together in situations where the rate of innovation is very high. Operational
flexibility is important and there is the need for employees to gain and apply new skills quickly
with minimum supervision. However due to bureaucracy high performance work design does not
work.
DESIGNING JOBS – MOTIVATING JOBS
The concept of motivating jobs relates to Job design. Job design affects employee productivity,
motivation and satisfaction. Job design is a conscious effort to organize tasks, duties and
responsibilities into a unit of work to achieve certain objectives.
How a job design creates a motivating job can be seen with the help of certain components of job
design, namely, job rotation, job enlargement, job enrichment, work simplification etc.
Work simplification simplifies the job by breaking down the job into small parts. Simplified jobs
are easy to perform hence employees find it easy to do. Training requirements are reduced and it
benefits the organizations in terms of cost.
Job rotation means movement of employees of job to job across the organization. It improves the
intrinsic reward potential of a job because of different skills and abilities are needed to perform a
job. Workers become more competent in several jobs rather than only one. It also improves
workers self image, provides personal growth and makes workers more valuable to the
organization. Periodic job change can improve inter-departmental cooperation. Employees
become more understanding to each other’s problems. Consequently it provides a high level of
motivation to employees because jobs itself become motivators. Hence job rotation helps the job
become more motivating.
Job enlargement involves expanding number of tasks or duties assigned to a given job.
Job enrichment involves improving task efficiency and human satisfaction. Job enrichment
provides greater scope for personal achievement and recognition, more challenging and
responsible work and more opportunity for individual advancement and growth. An enriched job
gives vertical enrichment in the form of more responsibility and autonomy and a horizontal
enrichment in the form of variety of tasks and more growth opportunities. The employee does
more planning and controlling with less supervision but more self-evaluation. All these factors
lead to increased level of motivation and hence make the jobs more motivated.
Considering above examples, we can say that designing jobs is actually using the relevant and
right techniques of job design, like rotation, enrichment, simplifications and make the jobs more
motivating to perform.
So we can say that Designing Jobs is actually creating Motivated Jobs.
JOB SATISFACTION
Job satisfaction is the result of various attitudes possessed by an employee towards his job,
related factors and life in general. The attitudes related to job may be wages, supervision,
steadiness, working conditions, advancement opportunities, recognitions, fair evaluation of work,
social relations on job, prompt settlement of grievances etc.
In short job satisfaction is a general attitude, which is the result of many specific attitudes in
three areas namely, job factors, individual characteristics and group relationships outside the job.
Components of Job Satisfaction
Personal factors: Sex, Dependents, Age, Timings, Intelligence, Education and Personality.
Job inherent factors: Type of work, Skills, Occupational status, Geography, Size of plant
Management controlled factors: Security, Payment, Fringe benefits, Advancement
opportunities and Working conditions, Co-workers, Responsibilities, Supervision
Job Satisfaction & Behavior relationship is described through following examples.
Satisfaction & Turnover
Satisfaction & Absenteeism
Satisfaction & Accidents
Satisfaction & Job Performance
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