Introduction

1. Introduction • HRD is a continuous process to facilitate a sustained development of employees’ competencies, dynamism, motivation and effectiveness in a systematic and planned way. • Daftur defines HRD “as a system and process concerned with organized series of learning activities within a specified time limit, designed to produce behavioral changes in the learner, in such a way that it acquires desired level of competence for present or future role”.

2. The analysis of any definition of HRD further shows that there are three important aspects viz., 1. It helps/motivates the employees of an organization. 2. It acquires, develops and moulds various aspects of human resources. 3. It contributes to the organizational, group, individual and social goals.

3. Forecasting • The use of historic data to determine the direction of future trends. Forecasting is used by companies to determine how to allocate their budgets for an upcoming period of time. This is typically based on demand for the goods and services it offers, compared to the cost of producing them. • Forecasting Techniques • Quantitative - Simple regressions • Multiple regressions • Time trends • Moving averages • Qualitative - Delphi method • Nominal group technique • Jury of executive opinion • Scenario projection

4. Maintaining personnel inventories Inventory management involves the development and administration of policies, systems and procedures, which will minimize total costs relative to inventory decisions and related functions such as customer service requirements, production scheduling and purchasing. Viewed in that perspective, inventory management is broad in scope and affects a great number of activities in a company’s organization. Succession planning Getting the right number of people with the right skills, experiences, and competencies in the right jobs at the right time. Key Elements Assessment of Key Positions Identification of Key Talent Assessment of Key Talent Development Monitoring & Review Generation of Development Plans

5. Modeling career paths • Understanding the structure and dynamics of the job market is important from a variety of perspectives. Individuals are clearly very much concerned with establishing good career paths. Knowing what skills and combinations of skills are valued in various positions is very valuable. Understanding how to plan a career and seek positions that will lead to desirable career • outcomes is another vital capacity. Institutions and policy makers should also understand patterns and trends in the job market in order to set policy and focus training resources where they can be most effective. • Employment • Recruitment • Selection • Orientation

6. Recruitment - The process of identifying and hiring the best-qualified candidate (from within or outside of an organization) for a job vacancy, in a most timely and cost effective manner. Selection - Employee Selection is the process of putting right men on right job. It is a procedure of matching organizational requirements with the skills and qualifications of people Step 1 – Application Step 2 – Minimum Recruitments Step3 – Written Test Step 4 – Interview Step 5 – Medical Evaluation Orientation - New employee orientation effectively integrates the new employee into the organization and assists with retention, motivation, job satisfaction, and quickly enabling each individual to become contributing members of the work team.

7. Training and Development • Devising Programs Hourly workers Managerial Staff • Primary Skills Training • Advanced Skills Training • Promoting Diversity

8. Equal Employment Opportunity • Ensuring EEO Compliance • Administering affirmative action • Handling discrimination complaints

9. Compensation The old model was, “How do you get people to serve the organization’s goals?” Today we have to ask, “How do you build organizations that merit the gifts of creativity and passion and initiative?”

10. Administering Compensation • Decide on the form of pay system: Cash/benefits • Level of pay structure : Compensation paid by the organisation vis-à-vis its competitors • Conduct a pay survey • Level of pay relates to productivity of employees • Structure: Nature of wage differentials • No. of grades • How big should the pay differential be? • Timing of payment • All of this requires Job evaluation • Design pay policies keeping in mind perception of fairness • Decide on the mix : Fixed / variable pay. • Conduct Job analysis

11. Decide on incentive pay plans : • Incentive plans recognize individual effort and rewards the same thus serving as a motive for employees to work hard and reap the benefits. • Incentive plans can be based on individual or group performance. • Individual : Straight piece-work plan, Bedeaux plan, Taylor’s differential piece rate plan, Halsey’s 50-50 etc • Group: Scanlon plan, Rucker plan, impro-share. • Decide on performance review • The systematic evaluation of the individual with respect to his performance on the job and his potential for development. • Aids performance related pay-increases and promotions • Not only needs to be transparent and fair but must also be perceived so • Can be done through Ranking,Standard rating scales,Behaviorally Anchored Rating Scales (BARS), MBO,Essay.

12. Labour Relations Its all about establishing a connect..

13. Good labour relations involve instituting labor-management cooperative programs which ensure the hearing of employee concerns and complaints and also monitors the morale level within the organisation. • Experts agree no cooperative program can succeed unless top management expresses a firm commitment to employee and/or union participation. The following illustrate private sector policies or contract provisions: 1. Dayton-Hudson Corporation: To provide an atmosphere that encourages employee initiative and input and which fosters trust, creativity and economic security.

14. 2. Intel Corporation: Open (constructive) confrontation is encouraged at all levels of the corporation and is viewed as a method of problem solving. Decision by consensus is the rule. 3. Xerox Corporation :Involves employees in discussions about work-related issues. Solicits ideas from employees. Guides team decisions to match overall organizational objectives. Involves employees in decision-making. Encourages employees toward cooperation rather than competition. Establishes a climate of openness and trust.

15. SAFETY →ENSURING OSHA COMPLIANCE →PHYSICAL ENVIRONMENT →CONDUCTING ACCIDENT INVESTIGATIONS

16. EMPLOYEE BENEFITS • DESIGN OF VACATION & SICK BENEFITS • 401K PLAN • HEALTH INSURANCE & WELLNESS PROGRAMS

17. MEDICAL HEALTH • CONDUCTING HEALTH & WELLNESS PROGRAMS

18. Opinion surveys • An opinion poll, sometimes simply referred to as a poll is a survey of public opinion from a particular sample. Opinion polls are usually designed to represent the opinions of a population by conducting a series of questions and then extrapolating generalities in ratio or within confidence intervals. • HR Audit • A Human Resources Audit is a comprehensive method (or means) to review current human resources policies, procedures, documentation and systems to identify needs for improvement and enhancement of the HR function as well as to ensure compliance with ever-changing rules and regulations • Sections of review include: • Hiring and Orientation • Benefits • Compensation • Performance evaluation process • Termination process and exit interviews • Job descriptions • Form review • Personnel file review

19. Purpose of HR Audit • Ensuring the effective utilization of the organization’s human resources • Reviewing compliance concerns with a myriad of administrative regulations • Instilling a sense of confidence in management and the human resources function • Maintaining or enhancing the organization’s and the department’s reputation in the community • Performing “due diligence” review for shareholders or potential investors/owners • Establishing a baseline for future improvement for the function

20. Personnel Research • Publishing statistical analysis

21. Discipline • Formulation and coordination of policies • Assistance and advice in major disciplinary actions • Provide technical expertise and consultation to help supervisors determine what course of administrative action is most appropriate in specific situations. • Determine whether sufficient evidence exists to justify taking disciplinary action once the investigation of any misconduct is complete.

22. HR Audits • Employee turnover • Grievances • Attendance • Accidents • Compliance with federal and state regulations

23. CASE STUDY The Other Side of HR Function

24. M/s Sukumar Engineering Works, on the outskrits of kolkata, with over 800 employees was making a good amount of profit due to their highly dedicated employees. The level of job satisfaction of the employees was very high. HR practices and the relationship with the recognized union were also satisfactory. The management was proud of their employees and the union. The company had one electric arc furnace and a re-rolling mill. The raw material was steel scrap. The mill was working in three-shift , 7 day operation as the process was continuous. The furnace was producing pencil steel ingots which were sent to re-rolling mills for further operations. It was 29th August,2010. On the evening of that day, before leaving the works, the HR manager, PrabirChatterjee, as usual went to the office of the GM, AlokBannerjee. He found him in a state of tension and asked him the cause of his worry. The GM asked him to sit down and revealed that due to non-availability of manila rope in the stores, the electric furnace had to be closed down on that night shift and the next morning.

25. Because of this, there would be a loss of ingots production and the target for the month could not be met. Only 2 days were left. Before the beginning of the month, the MD had particularly had emphasized the need to meet the target due to pressing orders . The GM had assured him that he would definitely produce the required tonnage and would rather try to produce more. Now, almost at the end of the month, he had never expected that he would face a problem like this. 3 employees who requested for urgent leave were also refused due to the commitment of the production. There was absolutely no problem of any raw material. But a small item like manila rope’s non-availability created an acute problem. The GM admitted that the mistake was due to the stores staff, who could have procured the material on time. On enquiry, it was revealed that the production staff had already drawn its monthly requirements from the stores. The consumption of this material this month was little more due to poor quality of manila rope. There might some other unknown reasons too. At that time, the GM, instead of digging out further reasons, wanted an immediate solution first.

26. Prabir knew the general of this factory. When he joined this company 3 years ago during his orientation program he studied and learnt thoroughly the manufacturing process. He also read a book on ‘Making and Shaping of Steel’ as suggested by the GM. He obtained sufficient knowledge to know the process. Prabir was not a technical person and therefore did not go deep into the subject. For some doubts, he got clarifications from technical staff who were quite cooperative. A brief narration on the function of electric arc furnace was:- As a first step, the steel scrap would be loaded in the scrap charging bucket which had petals underneath. The petals were tied with a manila rope. When the over head crane took the loaded scrap charging bucket just over the open arc furnace, the manila rope would be burnt due to the heat of the furnace. The petals would open out to drop the steel scrap into the furnace. The electric furnace produced pencil ingots to be rolled in the re-rolling mills for the final finished products, such as rounds, angles, etc., to be used for reinforcement jobs. Thus, the role played by manila rope during the process was very important.

27. After knowing the problem of non-availability of this material in the stores, Prabir immediately volunteered to procure the rope. He filled up a purchase requisition and got it signed by GM. He then went to the purchase department. Since it was already 6:30pm, all staff members had left the office, except 1 purchase officer, who was busy in clearing out some of his pending jobs. Prabir requested him to help him on this matter. The officer asked him to wait for the next day as manila rope not a material to be procured so urgently. Prabir explained all the steps in the manufacture of pencil steel ingots and the importance of this rope during the process. He also said that the production would be stopped in the night shift and in the next morning. The purchase officer, an engineer, was very happy to know the technical details narrated by a personnel man. He also understood Prabir’s anxiety and contacted on phone 2 or 3 hardware merchants. He wrote down a formal purchase order and directed Prabir to go to the city to collect the material. Prabir took the jeep and quickly drove to the shop before it was closed.

28. He collected 4 bundles of manila rope and went straight to the factory. When the GM saw the material in the jeep, he thanked Prabir profusely for taking such an initiative to procure the material. That month the target was exceeded. The reason for taking up such a non routine job was his prudence. If the target of production was not met the bad consequences would have been many, including HR problems. The employees would receive less incentive bonus, the cordial relationship with the recognized union would have been damaged, the morale of the GM and the production staff might have plummeted, etc. PrabirChatterjee, a highly committed and dedicated officer, was always looking out for some challenging and non routine jobs of this nature. Once, the company received a notice from the state government, which could not be dealt with by any executive in the company. It was Prabir who took the letter and got a solution after personally contacting some government officials.

29. On the foundation day of the company, the GM and Personnel manager received special mementos from MD, who made a special mention of Prabir in his speech and thanked him for his involvement. Prabir, in his reply, said that all Personnel officers need not have technical qualification but surely they could, by their involvement know the process of production. They should be thoroughly familiar with all materials required for production right from the raw materials stage to the finished products. This knowledge would definitely help them to grasp and understand the problems much better.

30. QUESTIONS FOR DISCUSSION • Is it correct for an HR to enter into an area not his own? • Do you advocate a change of policy for recruitment of HR managers with technical qualification? • Do you find every aspect of HR functions working well in M/s Sukumar Engineering Works? • Can the HR take all credit for himself where excellent industrial relations exist?

31. Is it correct for HR manager to enter into an area not his own? Ans. The job of HR manager is a very responsible one and has unlimited scope. Knowledge is power. Acquiring knowledge of other areas, therefore, will enable the HR manager to grasp the problems effortlessly. When an HR executive is dealing with persons, he should preferably have some functioning knowledge of the employees with whom he is working. When once he knows the condition of workplace and other matters, he can do his job in an enhanced and efficient manner. Further, this additional knowledge will bring better discipline among the employees. Understanding the area of work of the employees with whom he is involved, day in and out, will undoubtedly bring competence. The HR manager’s knowledge about the occupation of the workers will always help him to discharge his responsibilities very effectively. It is not necessary that he should thoroughly possess the entire process of production, but at least working knowledge will definitely help him in several ways. His scope of work will enlarge. The HR manager, therefore, should devote some time to learn the technical aspect of the department in which he is posted. It should not be misconstrued as entering into the area of work with which he is not connected.

32. 2. Do you advocate a change of policy for recruitment of HR managers with technical qualification? It is not necessary. The specialization in HR for personnel of IT, Engineering or Marketing will be an added advantage. There are several engineers who have opted to be HR executives. Some production engineers, with their immense involvement in dealing with a few problems in HR area, are doing very well as HR managers. The dual knowledge of these persons help them take up various crucial HR activities for the benefit of the management. However, there may not be a change of policy basically for recruiting HR managers with technical knowledge. 3. Do you find every aspect of HR functions working well in M/s Sukumar Engineering Works? Ans. From the case study, it is known that M/s Sukumar Engineering Works were maintaining a very cordial relationship with the recognized union. The employee’s morale was also high.

33. 4. Can the HR manager take all the credit for himself where excellent industrial relations exist? Ans. Yes, he can. But it is a collective effort. The top management should give all opportunities to line executives to discharge their responsibilities in an efficient manner. Interference of the superiors should be judicious. However, the job knowledge of the executives in all areas including HR should be judged by their performance. Decision-making at their level with regard to IR or HR matters may sometimes bring a negative effect. The intelligent and experienced HR executive will play a vital role in dealing with all IR topics, with the cooperation of all, and give the credit to himself for excellently maintaining a peaceful industrial harmony.

34. Bibliography • HR through case studies by Ravi Dharmarao, excel books, first edition, pp 37-39 and 112-113.