MBO

MBO or Management by Objectives is one of the techniques which can be used to asess an employee's potential or to set future performance goals for him .It is basically a future oriented Technique used for performace appraisal of an employee .

Peter F Drucker gave the concept of MBO .MBO can be described in 4 steps ::

Step 1) To establish the goals each subordinate is to attain .Supervisors and subordinates may work together to establish such goals .Goals wud mean a desired outcome to be achieved . Such goals are then used to evaluate the employees .

Step 2) Involves setting the performance standard for the subordinates in a previously arranged time period .As subordinates perform they know what to do , what has been done and what remains to be done .

Step 3) In this step the actual level of goal attainment is compared with the goals agreed upon . The evaluator explores the reaons for the difference . This helps determine the possible training needs .

Step 4) This step involves establishing new goals and possibly new starategies for goals agreed upon .If subordinate has succeded the goal attainment he may be involved in goal setting process .

MBO Process is more useful and successful with managerial personnel and employees who have a fairly wide range of flexibility & self control in their jobs .Jobs with little or no flexibility , such as assembly line work are not very compatible with MBO .

Empowered Teams

Empowering refers to passing on authority and responsibility .Empowerment occurs when power goes to employees who then experience a sense of ownership and control over their jobs .Empowered individuals know that their jobs belong to them . Since they have a say on how things are done employees feel more responsible . When they feel responsible they show more initiative in their work and enjoy the work more .
Empowered Teams are also known as Self directed Teams .

The following are the features of Self Directed Teams (SDT)::

1) They take the responsibility for the quality of their products and services .
2) They may hire their own replacement or assume responsibility for disciplining their own areas .
3) They are responsible for acquiring any new training they might need .
4) They order materials , keep inventories and deal with suppliers .
5) They may prepare their own budgets and cordinate their work with other departments .
6) They often create their own schedules and review their performance as a group .
7) They set their own goals and inspect their own work .
8) They plan , control and improve their own work processes .
9) They are empowered to share various management and leadership functions .

Orgnisational structure for empowered teams is flat . Management plays a role of a coach or a facilitator.Leadership is shared with the team unlike in a traditional system where its is controled .Informaton flow in such teams is open and is shared among team members .Rewards are skill based or team based .Teams collectively plan , control and improvise the job process .

Many companies are enhancing the number of self directed teams in their organisations .In some companies the divitional heads run their divisions like MD's run their companies .

Quality Circles

QC consists of 7 -10 people from the same work area who meet regularly to define , analyse and solve quality and related problems in their area .The membership is strictly voluntary and meetings are held once a week for and hour or two . During the initial meetings the members are trained in problem solving techniques borrowed from group dynamics , industrial engeenering & Quality Control .Some of the techniques include brainstorming , Pareto analysis , cause & effect analysis histograms , control charts , stratification and scatter diagrams .

QC are credited with producing quick , concrete and impressive results when correctly implemented .the following are the advantages ::

1) Employees are involved in decision making .
2) Savings to costs ratios generally are higher than those achieved with other productivity -improvements programms .
3) QC members enhance their chances of promotion to supervisory positions .

To several workers , accustomed to thinking of work as a mindless routine , what happens on the shop floor (thru QC ) is a welcome relief .QC give added power to the individual worker .They are a way of motivating the workers and retaining them .

QC begin with a great deal of training in identifying work problems , appkying statistics to track and evaluate quality .For circles to succeed in the long run , the mangement needs to show its commitment , by implementing some of the suggestions of the groups and providing feedback on the disposition of all suggestions .
Last and not the least they are an effective bridge between participative and non-participative management approaches .

Total Quality Management

TQM as it is called refers to deep commitment of an organisation to Quality .Quality of Products and services is an obsession and every process is subject to intense scrutinity to improve .Almost every issue is subject to exploration and process is a continuing one .Employees are provided by extensive training in problem solving , group decision making and statistical methods .

Why TQM is necessary in an organisation ???

1) To meet the customers requirement on time , the first time and 100 % of the time .
2) To strive to do error-free work .
3) To manage the work by prevention , and not by correction .
4) To measure the cost of Quality .

TQM comes under Participative method because every employee in the organisation is involved and is expected to take responsibility for improving quality ,everyday .It is a formal programme which involves direct participation by all the employees .Though the methods of participation may differ from company to company . TQM starts from the grassroot level and moves up since if the process is not improvised from the scratch , it will not result in enhancement of service . Thus all employees and the top management should contribute to uplift the quality of service to enhance a quality Product to customers .

Brainstorming --the right way !

Brainstorming is a v useful technique if used in the right way and doing it in a process .Brainstroming aids in motivation because it involves members of a team in bigger management issues, and it gets a team working together .For brainstorming activity to reap desired results it needs to be structured more than being random . following the Brainstoring process is crucial for it to create new ideas, solve problems, motivation and developing teams.

Using a Flip chart is v important while doing a brainstormings session This is crucial as Brainstorming needs to involve the team, which means that everyone must be able to see what's happening. Brainstorming places a significant burden on the facilitator to manage to manage the process, people's involvement and sensitivities, and then to manage the follow up actions. Effective Brainstorming session results in improving the organization's performance and developing the team.

The following 3 step process ensures an effective session ::

1) Planing and Agreeing to the Aim of Brainstorming

Ensure everyone participating in the brainstorm session understands and agrees the aim of the session (eg, to formulate a new job description for a customer services clerk; to formulate a series of new promotional activities for the next trading year; to suggest ways of improving cooperation between the sales and service departments; to identify costs saving opportunities that will not reduce performance or morale, etc). Keep the brainstorming objective simple. Allocate a time limit. This will enable you to keep the random brainstorming activity under control and on track.

2) Manging the Brainstorming Activity

Brainstorming enables people to suggest ideas at random. Your job as facilitator is to encourage everyone to participate, to dismiss nothing, and to prevent others from pouring scorn on the wilder suggestions (some of the best ideas are initially the daftest ones - added to which people won't participate if their suggestions are criticised). During the random collection of ideas the facilitator must record every suggestion on the flip-chart. Use Blu-Tack or sticky tape to hang the sheets around the walls. At the end of the time limit or when ideas have been exhausted, use different coloured pens to categorise, group, connect and link the random ideas. Refine the ideas by making new headings or lists. With the group, assess, evaluate and analyse the effects and validity of the ideas or the list. Develop and prioritise the ideas into a more finished list or set of actions or options.

3) Implementing the Actions Agreed

Agree what the next actions will be. Agree a timescale, who's responsible. After the session circulate notes, monitor and give feedback. It's crucial to develop a clear and positive outcome, so that people feel their effort and contribution was worthwhile. When people see that their efforts have resulted in action and change, they will be motivated and keen to help again.

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PEST Analysis --A Tool !!

The PEST analysis is a useful tool for understanding market growth or decline, and as such the position, potential and direction for a business. A PEST analysis is a business measurement tool. PEST is an acronym for Political, Economic, Social and Technological factors, which are used to assess the market for a business or organizational unit. The PEST analysis headings helps in reviewing a situation, and can also, like SWOT analysis be used to review a strategy or position, direction of a company, a marketing proposition, or idea.

Completing a PEST analysis is very simple, and is a good subject for workshop sessions. PEST analysis also works well in brainstorming meetings. Use PEST analysis for business and strategic planning, marketing planning, business and product development and research reports. One can also use PEST analysis exercises for team building games. PEST analysis is similar to SWOT analysis - it's simple, quick, and uses four key perspectives. As PEST factors are essentially external, completing a PEST analysis is helpful prior to completing a SWOT analysis (a SWOT analysis - Strengths, Weaknesses, Opportunities, Threats - is based broadly on half internal and half external factors).

PEST is also extended to seven or even more factors, by adding Ecological (or Environmental), Legislative (or Legal), and Industry Analysis, which produces the PESTELI model.STEEPLED is another interpretation which includes pretty well everything except the kitchen sink(this is just to make u laugh ) : Political, Economic, Social and Technological - plus Ecological or Environmental, Ethical, Demographic and Legal .

Political

ecological/environmental issues
current legislation home market
future legislation
international legislation
regulatory bodies and processes
government policies
government term and change
trading policies
funding, grants and initiatives
home market lobbying/pressure groups
international pressure groups
wars and conflicts

Economic

home economy situation
home economy trends
overseas economies and trends
general taxation issues
taxation specific to product/services
seasonality/weather issues
market and trade cycles
specific industry factors
market routes and distribution trends
customer/end-user drivers
interest and exchange rates
international trade/monetary issues

Social

lifestyle trends
demographics
consumer attitudes and opinions
media views
law changes affecting social factors
brand, company, technology image
consumer buying patterns
fashion and role models
major events and influences
buying access and trends
ethnic/religious factors
advertising and publicity

Technological

competing technology development
research funding
associated/dependent technologies
replacement technology/solutions
maturity of technology
manufacturing maturity and capacity
information and communications
consumer buying mechanisms/technology
technology legislation
innovation potential
technology access, licencing, patents
intellectual property issues
global communications
ethical issues

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The Apprentices Act , 1961

Objective ::The Basic objective of this act is to provide for the regulation and control of training of apprentices .

Meaning :Any person who is undergoing apprenticeship training in pursuance of a contract of apprenticeship is an Appenrentice .
Two conditions must be fullfilled ::
1) He should be undergoing apprenticeship training .
2) There should be a contract of apprenticeship .

Education Criteria [sec 3]

The below education criterias must be fulfilled by any apprenticeship :

a) s/he should not be less than 14 years of age , and
b) s/he must subscribe teh prescribed standards of education and physical fitness .

Apprenticeship Training :: [sec 2]

It means a course of training in any industry or establishment undergone in pursuance of a contract of apprenticeship and under prescribed terms and conditions .Such a contract is called contract of apprenticeship .

Apprenticeship Contract [sec 4]::

Before undergoing any apprenticeship Training , there should be a contract b/w the employer and the person intending to be engaged as an apprentice.
In case of a minor , his guardian shall enter into a contract with the employer .

Registration of the Contract ::

1) The employer shall send the contract to the apprentieship adviser for registration within 3 months of the date on which it was signed .

2)The contract shall be registered by the apprenticeship adviser on being satisfied that the person described as apprentice in the said contract is qualified under this act .

Period of Apprenticeship Training[sec 6]

a) must be specified in the contract of apprenticeship .

b) in case of trade apprentices who have undergone institutional training in a school or any other instituion recognised by the national council the period must be decided by the institution or the council .

c) in case of other trade apprenticeship /technical aprenticeship /vocational apprenticeship , the period of training shall be as prescribed in the rules .

Payment to apprenticeship ::[sec 13]

1) The stipend paid by the employer to the apprentice should not be less than the prescribed minimum rate & the rate should be mentioned in the contract .

2) The stipend paid should not be on the basis of piece work nor he shall take part in any output bonus or other incentive scheme .

Obligation of Apprentices::

1) He should learn his trade conscientiously and diligently to qualify himself as a skilled person before the expiry of the peiod of training .

2) He should carry out all lawful orders of his employer & superiors in the establishments .

3) He should carry out his obligations under the contract of apprenticeship .

4) He should attend the practical and instructional classes regularly .

Novation of Contract of Apprenticehsip

If the employer for some reason is unable to fulfill his obligation then with the permission of apprenticehsip adviser the appentice or his guardian shall complete the training in another employer for the unexpired portion of the period of apprenticeship training .The agreement on registration with the AA shall be deemed to be the contract of apprenticeship b/w the other employer & the apprentice.

From the date of such registration the contract of registration from the first employer is deemed to be terminated .

Period of extention of Training ::

If the apprentice is unable to complete his training due to some strike /lockout or layoff in an establishment , the period of his apprenticeship training would be extended equal to the period of strike or lockout & s/he shall be paid a stipend during the period of such strike or lockout or layoff .

Termination of Contract

1) The contract gets terminated on the expiry of the period of apprenticeship training .

2) If its a mutual termination ,either party can make application for termination to the AA and thus also copy of the same to the other party who on being satisfied that it is in the interest of both parties shall register the contract as terminated .

3) If the contract is terminated from the employers side then he shall pay the prescribed amount of compentation to the apprentice .

4) If the contract is terminated for failure on the part of apprentice , he or his guardian shall refund the cost of training to the employer .

Terms used ::

AA =Apprenticeship Adviser
CAC = Central Apprenticeship Council
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Audit of HR Function

The folllowing cirterias would help measure effectveness of the HR Function in an organisation ::

1) The HR deptt plans the company's manpower needs proactively .

2) The HR deptt conveys organisational Goals to everyone .

3) The HR deptt links appraisal and compensation to corporate objectives .

4) The HR deptt meets the company's and individual training needs .

5) The HR deptt diseminates information down the ranks .

6) The HR deptt doesnot handle staff welfare , canteens or payroll mangement .

7) The HR deptt has knowledge of behaviourial sciences and industrial psycology .

8) The HR deptt gets feedback on its performance from its employees .

9) HR Practices are audited , ther costs computed and then effectiveness is evaluated .

10) The HR deptt is represented in strategy-building sessions of the Top Management .

11) HR issues are discussed explicitly when strategic plans are formulated .

12) The performance of the HR deptt and of the organisation are linked .

13) The HR deptt can easily compete for funds and management involvement .

14) HR managers have sufficient powers to suggest strategic initiative to the top management .

15) The structure of HR deptt is effective enough in delivering competant services .

16) Line managers are recruited along with trained specialists in the HR deptt .

17) The HR Function is given as much significance as other functions in the organisation

18) Last but not the least the Head of the HR deptt is always accessible to all its employees .

Balanced Score Card

It is a strategic planning and management system used to align business activities to the vision statement of an organization. A Balanced Scorecard approach is to take a holistic view of an organization .

A Balanced Scorecard approach generally has four perspectives:

1) Financial
2) Internal business processes
3) Learning & Growth (human focus, or learning and development)
4) Customer

Each of the four perspectives is inter-dependent - improvement in just one area is not necessarily a guarentee or recipe for success in the other areas .

Implementing the Balanced Scorecard system company-wide should be the key to the successful realisation of the strategic plan/vision.

A Balanced Scorecard should result in:

1) Improved processes
2) Motivated/educated employees
3) Enhanced information systems
4) Monitored progress
5) Greater customer satisfaction
6) Increased financial usage

Feedback is essential and should be ongoing and contributed to by everyone within the organization.

And it should be kept in mind that Balanced Scorecards do not necessarily enable better decision-making .

A ) Finance section could measure ::
1) Return On Investment
2) Cash Flow
3) Return on Capital Employed
4) Financial Results (Quarterly/Yearly)

B) Internal Business Processes ::

1) Number of activities per function
2) Duplicate activities across functions
3) Process alignment (is the right process in the right department?)
4) Process bottlenecks
5) Process automation

C) Learning & Growth ::
1) Is there the correct level of expertise for the job?
2) Employee turnover
3) Job satisfaction
4) Training/Learning opportunities

D) Customer ::

1) Delivery performance to customer
2) Quality performance for customer
3) Customer satisfaction rate
4) Customer percentage of market
5) Customer retention rate



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BELL CURVE METHOD IN AN ORGANISATION .

One of the errors in rating the employees in organisations is liniency which means we cluster a large numer of emloyees around a high point on a rating scale . Bell Curve also called Forced distribution method of performance Appraisal seeks to overcome this problem by compelling the rater to distribute the ratees on all points on the rating scale .

This method operates under an assumption that employee performance level conforms to a normal statistical distribution which is a Bell Curve .

Bell Curve assumes that in any organisation only 10% employees are excellent performers , 20% are Good , 40% are average performers , 20 % are below average and left 10 % are usatisfactory performers .

Any Organsiation which selects only good and skillfull performers and retain only them , the use of this method would be unrealistic and possibly v destructive to an employee morale .

The error of central tendency may also occur as the rater resists from placing an employee in the lowest or in highest group .

Difficulties also arise for the rater to explain to the ratee why s/he has been placed in a particulr group .One merit of this method is that it seeks to eliminate the error of liniency .

Bell Curve method is not acceptable to raters and ratees , especially in small groups or when group members are highly skilled .


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Performance Appraisal

Meaning::It is a systematic evaluation of the individual with respect to his or her performance on the job & his or her potential for development .

Need of Performance Appraisal in an Organisation::

1) To effect promotions based on competance and performance .

2) To confirm the services of probationry employees .

3) To assess training and development needs of the employees .

4) To give employees a constructive criticism and guidance for the purpose of their development .

5) To improve communciation in the organisation .PA provides a format of dialogue b/w superior and subordinate .

6) Performance Appraisal helps to measure th effectiviness of HR funstions of selection , training and transfers etc .

Application of Web 2.0 in HR management

Web 2.0 refers to second generation of web development and design ,that facilitate communication , secure information sharing , inter-operatability , and collaboration on the WWW. It facilitates communication & information sharing .The best part is that it is absolutely free of charge unlike yesteryears .

HR can also very smartly use web 2.0 becoz of the following reasons ::

1) Latest happenings in HR :: There are about 100's of website where one can learn about Hr policies and processes .One can even share their HR knowledge .

2) Helps in knowing employees :: Most generation "Y "employees create their profiles on social networking sites .By adding them to your link or network one can easily stay in touch with them , can know more about them ,their activities , their talents and can create a more strong human bond and friendship .

3) Internal communication Tool :: Companies Blogs / intranet sites are the best way to communicate HR voice to employees and vice versa .A Blog can be a v useful HR tool to allow free flow of information within the company & to keep in touch .

4) Reaching to candidates :: Presently there r many recuriting sites like recruitingblogs .com, naukri.com , timesjobs.com,shine.com,monster.com that allow to store jobs and profiles of candidates . With this and good networking we can contact the eligible candidates .

Universal Management Functions

There r mainly 4 universal management functions::

1) Planning :: Plans should define real value and must be linked to external needs .

2) Organizing :: How the managers structue the organisation and how does the successful execution of the plans happens .

3) Leading :: Leadership requires selecting & developing the right people with right skills @ right time , assuring decisions are made in just way which fosters commitment and building an environment of open communication & self motivation .

4) Controlling :: Effective measures should exist to control the fucntions .Without effective controlling the alignment is v difficult .

TIPS FOR HR PROFESSIONALS

1) Every HR must understand the Business & all its nuances from the customer/business/sales /operations point of view .If ther undertand the meaning of the business then only they can truly connect to their roles .

2) HR Professionals must develop skills sets in technology ,IT etc .This will bring efficiency in their work .

3) Relavant legal Frameworks shud be known and learnt by all HR people .Not having a legal knack can be a disaster and without which HR practices will be weak . This may require some study aswell .

4) A flair needs to be develop connect with people -build rapport with them -while maintaining strengths of conviction on difficult matters .

5) Constant and transparent communication should be practised as a regular norm in the organisation .it helps to keep employees motivated and connected with the organisation .

6) Creating a friendly and open environment that fosters a culture of caring the key assets in organisation is v important .

7) HR shuld aim hard to develop a robost Performance Management matrix .

8) A culture shud be developed wherein top management walks the talk .

9) HR professinals should also strive to bring about newness in the system by contantly changing and innovating for the better .

10) Hr shuold also create a condusive work environment .few problems @ workplace is the key to reduce stress @ work and create a happy employee which bring an overall pleasant rhythem in the organisation .

11) HR professionals should unlearn and learn all the time to develop & grow .