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Definition: 360 Degree Feedback or Assessment

360 degree feedback or assessment is a feedback system where an employee receives feedback from all the people
around him related to business. In 360 degree feedback, a feedback about the employee is received from everyone
with whom he has interacted with in the course of executing his job responsibilities. 360 degree feedback is obtained
from peers, teammates, subordinates, direct reports and even external parties like suppliers and vendors.

360 Degree Feedback is a type of feedback which is done by managers to understand the performance of an
employee, and used in the appraisal process. This feedback is a part of the organizational feedback which is
intended to improve the quality of employees in the workforce.

Definition: 4/5ths Rule


The four-fifths rule prescribes that a selection rate for any group (classified by race, sexual orientation or ethnicity)
that is less than four-fifths of that for the group with the highest rate constitutes evidence of adverse impact (also
called ‘disparate impact’), that is, discriminatory effects on a protected group. Adverse impact may occur in any of
the company’s decisions related to employees – be it hiring, promotion, training, transfer or layoff. A particular test
or selection procedure must be evaluated for effectiveness in terms of selection based only on characteristics
relevant to the job or task. It may, however, render disadvantage to members of a race, sex or ethnic group

For instance, if a company hires 50 percent of male applicants for positions in a predominantly male occupation but
the rate for female applicants is 20 percent, there may be judged to be an issue of discrimination as the rate of hiring
women is only 40 percent of that for male applicants, thereby violating the four-fifths rule.

Definition: Ability Tests


An ability test is a test to check an individual’s ability to perform a certain kind of job. It usually tests the individual
for certain skills or whether he is capable of acquiring those skills in the course of the job or through training.

Ability tests are also called aptitude tests and are generally standardized. These tests can be used to test variety of
skills – mental aptitude, problem solving, knowledge of a particular subject, reasoning ability, general intelligence
and so on.

These are conducted by the Human Resource function of a company to find the suitability of a candidate for a given
job role. These can be quantitative, psychological, verbal or may take other forms as well.

Absolute Standards
Absolute standards is a method of performance appraisal used to evaluate the performance of an employee in
comparison to standards established by the firm. Evaluation is done on an individual basis rather than comparing co-
workers. These standards can be set using research on work sampling, production data or expert opinions. Methods
can be of qualitative nature, quantitative or a mixture of both
Affirmative action refers to the endeavours of human resource department to ensure equal employment
opportunities for all individuals irrespective of their sex, religion, ethnicity, physical ability etc.

Appraisal Interview
An appraisal interview is a formal discussion process between an employee and his/her manager. It is one of the best
ways for an employee to increase productivity and change work habits. In appraisal interview, the employer and the
employee discuss the performances of the individual and the key areas of improvement and how the employee can
grow through a feedback mechanism.

Basic Skills
Basic skills are those skills which are essential for the person to be able to be fit into the job. The basic skills
required for a job are communication, presentation, understanding customers, computing skills, mathematics,
willingness to learn etc. These are necessary to ensure that the person has a certain iota of any job that he is going to
enter

Some basic skills are,

1. Presentation & Communication: What matters in today’s world is how you present yourself & how you
communicate to others. It could be both verbal as well as physical. What makes communication important is how
you convince the clients when you are to market the products or services.

2. Understanding Customers: It is basically about focusing on what the customer wants, be in terms of value,
services or skills. This also includes who the customers are, where the network lays, name, etc.

3. Basic Computing Skills: Given that we are now in a technologically dominated world, where computers are an
important proposition, basic knowledge of processing software, editing software & the internet are most important.

4. Mathematics: This is about knowing the basic arithmetic. Reason being with every companies focusing on the
finances part, it would help go a long run in achieving the balance sheet for the year.

5. Enthusiasm to learn: Most important about basic skills is that there needs to be a continuous learning
mechanism in place. This is because even though basic skills are important, it is the need to acquire new skills which
are important.

Cognitive Ability Testing


Cognitive ability testing is a common selection method used to test the knowledge & capabilities of a person. The
process is done through a Cognitive ability test (CogAT or CAT) which is characterized to measure the level of
aptitude that determines a person’s ability to learn. Cognitive ability tests include measures of verbal, mathematical,
memory & reasoning abilities.

Compensation
Compensation is the monetary benefit which is given to an employee or worker giving their services to an
organization. Compensation includes components like salary, wages, bonuses etc. The compensation provided helps
in motivating the employees, build their career and ensure that their are committed in achieving the company goals.

Compensation is something, most usually money, which is given to the employees of an organization or company as
payment or reparation for their service towards the organization or because of their loss incurred due to any
organizational activity.
Compa-ratio
A compa-ratio of ‘100 %’ would mean that the employee’s current salary for a job position and the range mid-point
for a comparable position are equal.

Compa-ratio= (Employee' s current salary )/(Range mid-point) X 100 %

Explanation

Compa-ratio is used by the employer to benchmark the salary being paid to the employee with that of the market.
The ratio is determined on the basis of the strategy of the organization and the budget allocated for the workforce.

A salary range – minimum and maximum – is defined and the range mid-point is found. This procedure is followed
for each grade level. This helps achieve internal equity. A Market Reference Point can be used instead of a range
mid-point to achieve external equity. An employee’s work experience, performance, and skills would indicate the
compa-ratio at which the salary is to be fixed.

Example

Current salary $45,000

Salary range maximum $60,000

Salary range minimum $40,000

Salary range mid-point $50,000

Compa-ratio = ($45,000/$50,000) X 100 % 90%

Cross Cultural Training


Cross cultural training refers to the training given to employees related to the cultural differences between nations,
the awareness of which helps in running smooth business across the nations. Cross cultural training is essential for
doing business in present scenario involving multiple nations and cultures. One needs in depth understanding of the
culture of the country he/she is dealing with.

Cross-cultural trainings can be broadly divided into two types, firstly General awareness training, which covers
handling foreign clients, increasing the awareness about foreign employees of the same company, facilitating
negotiations across the countries, managing and supervising staff belonging to different cultures etc. Second type of
training could be specific training related to particular a culture or nation. This is useful for the people who
frequently visits and interacts with that nation. The trainings mainly focus on general beliefs, values, traditions,
ethics and protocols of particular nation.

Employment Displacement
Employment displacement is the termination of an employee’s job as a result of elimination of the position he was
holding. This happens generally in case of organisation restructuring, downsizing, automation, merger/acquisition
or any other big change in the organisation.

Exit Interview
Exit interview is the interview conducted by an organization for its departing employee. This is a mandatory part of
the resignation process in most organizations.
Golden Parachute
A Golden parachute can be understood as the agreement between the employer and the employee for the financial
benefits and other substantial benefits which is given to the top executives in the event of termination of the
employee or during the company being taken over by some other organization. Golden parachutes are usually
reserved by the enterprise for the top level management executive of the organization.

The benefits package mostly consists of a list of specific terms that tells us what the terminated employee will get.
Golden parachute works in way when an employee is offered a top level executive position in the firm, the contract
will usually include a golden parachute clause. The clause clearly states the amount of the severance pay, cash
bonuses and stock options that he would get. It is also mentioned the condition under which a golden parachute is
applicable. The term golden parachute might seem like more towards in employee’s favor like termination is good
news. While golden parachutes have benefited the individuals and organizations, but they have also created various
controversies.

Following are few advantages of golden parachute:-

1. Reward the Risk takers- Executives are nervous about the fact that any wrong decision might result in losing
their current jobs, so it provides cover for such issues. Management needs leaders who are bold enough to take risks
and succeed.

2. Reduces probability of takeovers- Golden parachutes reduces the probability of hostile takeovers as the other
companies find hostile takeovers less appealing as they would be responsible for the expensive termination
packages.

3. Finding executives become easy- The golden parachute is one of the unique selling points in attracting
applicants for high level job vacancies. Executives need some kind of security if they are looking to work in an
enterprise which has high probability of being acquired by some other firm.

4. Facilitate more amicable severances- Usually when an employee is fired, some tend to retaliate by going against
the employer by threatening them to sue or disclose sensitive information. Under this they would part ways without
either party feeling anything bad against each other.

5. Removal of conflict- During a merger, an executive may willingly delay or sabotage the efforts as he might be
afraid of losing his job. The golden parachute guarantees their compensation, so they may be objective about the
evaluation of the merger.

Grievance
It is a complaint that one party has against the other party due to some disagreement. In the corporate scene, an
employee can have a grievance against another employee, or against the employer.

The issues addressed through the grievance may range from discrimination at office mistreatment & harassment to
issues related to salary, promotions etc. Every organization has a formal process to address the grievances of the
employees
Grievance Procedures
It is the formal process by following which, an employee can get his/her complaint addressed by the organization.
The process differs from organization to organization. Every organization documents the procedure in atleast one of
the following:

The employees should first try to solve the issue informally. In cases where it does not work out, the employees can
follow the step by step grievance procedure as prescribed in their company.

Generally, two types of systems are observed in organizations:

Open Door Policy: In this case the employees are encouraged to walk into the top management’s rooms and get
their grievance addressed directly. It builds trust between the employee and the organization. But, it is difficult to be
implemented effectively in large organizations. Also, it is difficult to be implemented for employees like labourers,
as they are generally not very comfortable talking to the top management themselves.

Step Ladder Policy: In this case, an employee raises his concern to his supervisor. In case he is not satisfied with the
decision of his supervisor he can put his problem in front of higher officials.

Gross Salary
Gross Salary is the sum total of all the components of your remuneration/salary package. Gross salary is basically
the salary which is without any deductions like income tax, PF, medial insurance etc. The gross salary is mentioned
in the company's offer letter in the salary section which mainly enlist all the components of the pay package. The
sum of all those individual components on an yearly or monthly basis is the gross salary.

The important components of salary may include:

• Basic

• HRA(House Rent Allowance)

• Leave Travel Allowance

• Conveyance Allowance

• Retirals

• Bonus

• Others like Medical allowance, Provident Fund (PF) etc

These components would determine the Gross Salary. Net Salary on the other hand is Gross Salary-Deductions like
taxes, retirals etc therefore Gross Salary > Net Salary.

In some cases, some non-monetary components may also be included in the gross salary e.g. holiday trip etc.

Horizontal Communication
It is the formal/ informal exchange of ideas between different individuals/departments at the same level of hierarchy
in the organization.

Advantages: Enabling horizontal communication in an organization, encourages free information exchange. Higher
information flow between departments is necessary so avoid the same problems being faced by different
departments. Hence, information exchange leads to lesser redundancy. Also, horizontal communication makes an
atmosphere where employees are comfortable to talk to people in different departments and gain from their learning.
Disadvantage: Sometimes, horizontal communication leads to disputes between individuals/departments. In such
cases higher officials have to step in to resolve the matter.

Browse the definition and meaning of more terms similar to Horizontal Communication. The Management
Dictionary covers over 7000 business concepts from 6 categories.

Horizontal Organization
The two basic types of organization structures are: Vertical and Horizontal Structure. While the Vertical structure is
one with many layers of administration, the horizontal system has no or very few hierarchical levels.

Hence, in horizontal organizations the power and decision making capability is decentralized. The people at the
lowest levels also have decision making powers in their area of work. But, such a structure becomes difficult to
apply in very large organizations. Horizontal organizations are also called flat organizations.

For example: Cisco Systems is a flat organization. Generally start-ups are also flat organizations.

Host Country Nationals


A host-country national (HCN) is an employee who is a citizen of a country in which an organization's branch or
plant is located, but the organization is headquartered in another country.

Who Makes Up the Labour Market?

• Host-country nationals

• Expatriates

• Parent-country nationals

• Third-country nationals

When organizations operations are spread globally, their employees are most likely to be from different country i.e.
citizens of more than one country. Employees may be from the organizations parent country, or host country, or
even a third country

The extent or level to which organizations fix the ratios, which is parent-country, host-country, or third-country
nationals varies.

Host-country national –

• employee who is a citizen of the country, other than parent country, in which an organization operates a facility.

• Citizens of the country where they live & work


• They are familiar with the culture and know the language

• They can often do a better job than home-country nationals

• They are less expensive than home-country personnel

• Host-country governments often prefer use of host-country nationals and some require it

• Hiring them is good public relations

• U. S. companies tend to rely heavily on host-country nationals

Recruiting Host-country Nationals

• Should not assume that recruiting approaches that worked in parent company will be effective in recruiting host-
country nationals

• Example: Error that many recruiters make while recruiting is assuming and believing that cultures is same or
similar in all countries of Europe

Advantages

• No problems with language and culture.

• Reduced hiring costs.

• No work permits required.

• Continuity of management improves since home Country Nationals stay longer in positions.

• Govt. policy may force hiring of Home Country Nationals.

• Promotional opportunities not limited - so higher morale among Home Country Nationals.

Disadvantages

• Headquarter may have less control over operations.

• Home Country Nationals may still have limited career opportunities outside the subsidiary.

• Hiring Home country Nationals limits opportunities for others to gain overseas experience.

• Hiring Home Country Nationals may encourage a federation of disintegrated national units rather than one
integrated global unit.

HR Generalists are the professionals working in HR department of an organization with responsibilities of


managing the employees’ relations with the organization right from the point when an employee joins to the point
he/she is associated with the organization.

In fact, HR Generalist team is the backbone of HR department and handles all the functions related to an employee.
HR Generalist professionals are in demand in all the industries and work with employees at all levels in an
organization. HR Generalists need to be cordial, attentive and prompt in order to be successful in their roles.
The major roles and responsibilities of HR Generalists are –
1. Interaction with Employees:

HR generalists plan and carry out recruitment and selection process for new employees. They also organize training
and orientation programmes for the newly-joined employees. Besides, Generalists manage the attendance,
performance appraisals, payrolls and benefits for all employees.

2. Formulating Company Policies:

HR Generalists provide their inputs at the time of formulating company’s HR policies. They circulate the updated
policies among all the employees and actively entertain their feedbacks.

3. Interaction with external players:

HR generalists interact with external players of a company like insurance providers, universities and colleges etc.
They negotiate with insurance companies to get attractive plans for their employees. They also maintain relations
with reputed colleges and universities to hire talented employees.

4. Other Responsibilities:

Some of the functions handled by HR Generalists are: defining retirement benefits, conducting exit interviews,
processing final settlements etc.

Hence, this concludes the definition of HR Generalists along with its overview.

HR Outsourcing
HR Outsourcing is a process in which the human resource activities of an organization are outsourced so as to
focus on the organization`s core competencies. Often HR functions are complex and time consuming that it will
create difficulty in managing other important thrust areas. By HR outsourcing, this problem can be avoided which
will enhance effectiveness by focussing on what the organization is best at. It will also improve the flexibility of the
organization to the rapidly changing business needs. Usually businesses that outsource HR are typically small to
midsize firms with number of employees ranging from 25 to 1500.

There are HR outsourcing firms present so as to meet an organization`s HR requirements. Some HR outsourcing
firms are generalists, offering a wide variety of services, while others are specialists, focusing on specific areas such
as recruitment, payroll etc. Depending on the degree of outsourcing required, we can either outsource the entire HR
functions or contract for specific HR functions. Some of the services provided by HR outsourcing firms are:

 Recruiting, training, and development

 Overseeing organizational structure and staffing requirements

 Tracking department objectives, goals, and strategies

 Employee orientation programs

Some of the well-known HR outsourcing companies are Viteb, PeopleStrong, Trinet etc.
HR outsourcing has become a popular solution for organizations to remain competitive and cut costs. It also
provides skilled professionals who are focused specifically on HR.

Hence, this concludes the definition of HR Outsourcing along with its overview.

HR Strategy
HR Strategy is the strategy adopted by an organization which aims at integrating an organization’s culture, its
employees and system by coordinating a set of actions to get the required business goals. Therefore it must be
aligned to organization’s mission, vision and goals. The characteristics of the industry in which the organizations is
to be analyzed and its competitive advantage need to be determined for developing an HR strategy.

The four key dimensions must be addressed in order to develop HR strategy:

1. Culture: It is the beliefs, rules and style of management of the organization

2. Organization: It is the structure, job types, job descriptions and reporting lines of the organization.

3. People: The most important part of the organization is its people. The skills level, employee potential and the
capability of the management constitutes the people.

4. Human Resources Systems: It is the people focused mechanism which deliver the correct strategy for the
organization- recruitment, communications, training and development, compensation and benefits etc.

The senior managers frequently in managing people element focus on only one or two dimensions and neglect the
other people. Typically companies prefer to relieve their managers of bureaucracy and push for more creative and
entrepreneurial spirit but then the management fail to develop a suitable compensation and training system.
When the mentioned creative or entrepreneurial flair does not appear from the employee’s work, the managers
blame the employees and not the system. If an organization wants to retain the quality of work then its duties are not
only to retain talented staff but also the organization needs to be reviewed and the training and compensation
benefits need to be improved in order to facilitate employees in a better way.

5 ways to successful strategy

1.Align your initiatives Strategic relevance/ Profit resource/demand risks

2.Align budgets and performance Performance Incentives should be directly connected to strategy

3.Strategy After Structure The structure should allow organizations to create strategies

4.Staff Engagement Communication , Participations etc

5.Monitor and adapt Strategies must be adaptable and flexible

Hence, this concludes the definition of HR Strategy along with its overview

Human Capital Management (HCM) is a set of human resource practices focused towards providing specific
competencies to the employees of an organisation. The steps adopted for implementation of HCM are three-fold:

1. Workforce acquisition: This includes the recruitment and selection process, focussed on selecting the employee with the
right organisational fit.

2. Workforce management: Mapping the roles and responsibilities of employees, and review of the same.

3. Workforce optimisation: Timely skill and compensation up-gradation of the employee.

Stated more informally, just as a capital is a resource of the company intended to provide future benefits, this
concept treats the personnel of an organisation in a similar manner. The employees must not be treated as mere
manpower. They should be trained and motivated so as to harness their best efforts out of them. It is the
responsibility of every senior manager to ensure timely growth and development of each of his subordinate
employees. This practice is implemented across every level of the organisation. Some components for practice of
effective HCM are:

1. Workforce planning

2. Compensation planning

3. Competency management

4. Performance management

5. Learning and training

6. Contingency workforce management

Today Human Resource Management has evolved into Human Capital Management or HCM. It is an approach that
treats the employees not just as resources, but as assets or human capital. The knowledge, skill, expertise and values
that an individual brings with him/her to the are the resources that can be improved by investment and used in the
same way as other assets are.
Unlike traditional practices where human resource is considered as a cost, HCM recognizes them as investors who
bank their knowledge and skill to provide value and profit to the organization.

Organizations do not own these assets, but rent them from the employees. Therefore, they are in constant threat of
being lost in case the employee exits the organization. Hence must be valued and nourished for deriving the benefits
properly.

This term is particularly relevant for the IT industry which runs only on its knowledge base.

Characteristics of HCM:

• Focuses on the people of the organization and also the knowledge they carry

• Uses technology strategically; develops and evolves its human capital along with changing technology

• Focuses on building networks and relationships rather than hierarchies and structures

• Preference is given to use of solutions that best fit the situation rather than standard procedures followed

• Organizational goals are achieved by aligning the business strategies with the available human capital.

• Unlike HRM, which works on setting short term goals, HCM focuses on long term objectives

• Using external, informal and strategic benchmarking

Human Resource (HR) Audit


It is mechanism to review the current HR policies, practices and systems to ensure that they fulfill the rules and
regulations. The audit also helps in identifying the areas of improvement in the HR function. Nowadays, the audit is
done regularly in the organizations.

The HR audit covers various functions of HR like Recruitment, Compensation & Benefits, Performance evaluation,
Termination Process and exit interviews etc.

Advantages: A properly conducted audit helps in the following

 To recognize strengths

 To reveal problem areas

 Confirms compliance with latest regulations

 Ensures effective HR policies

 Builds confidence in HR function

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Dictionary covers over 7000 business concepts from 6 categories.
Human Resource Information System (HRIS)
A cross between Human Resource Management and Information Technology, Human Resource Information System
is software solution to perform the HR functions of an organization. The goal of the HRIS is to maximize capacity,
accuracy and reliability by merging different parts of human resource management such as payroll, benefits
management, employee engagement and training, streamlining the processes and transforming it into a less capital
intensive system.

HRIS mainly uses integrated databases on which are built a comprehensive set of applications such as leave
applications, manpower budgeting, expenses, etc. It also provides reporting and analysing capabilities to the user
which makes the day-to-day function of the HR a lot less cumbersome.

Most Popular Modules

The most popular modules that can be found in various HRIS across organizations are:

 Employee Self-Service (Leaves, Attendance, Profile)

 Training (Schedules, Courses)

 Recruitment (Requisitions, Candidate Applications, Manpower budgeting)

 Benefits Administration

 Performance Management (Appraisal)

Example: Many organizations implement an HRIS in co-ordination with their HR and IT departments. This
includes all the modules stated above plus others. Example of such a system is Peoplesoft. Sometimes, organizations
choose to implement an ERP along with some of the basic modules as stated above.

Hence, this concludes the definition of Human Resource Information System (HRIS) along with its overview.

Human Resource Inventory


Human Resource Inventory, also known as the skills inventory comprehensively lists down the basic information on
all the employees, like their education, experience, skills, age, sex, salary related data, job preference and special
achievements. It is a vital tool used in HR planning and policy making.

he information contained in the human resource inventory should be such that it is not only relevant to the current
job position that an employee holds, but can also be used by recruiters to consider the individual for other job
openings that might come up in the future. Thus, the basic premise of maintaining a current skills inventory is to
identify if there are gaps between the current level of skills and relevant knowledge possessed by the employees and
the Knowledge, skills and abilities (KSAs) needed to meet future business goals.

This aids the HR managers to make better decisions in several areas, including but not limited to:

1. Hiring qualified staff for meeting current as well as future needs of various business departments

2. Allocation of right employee to the right job

3. Ensuring organisational success by efficient staffing

4. Analysing current deficits and taking up the right training programs to bridge the skill gaps

5. Strategizing a workforce plan for future needs of business.


Having an updated skills inventory benefits the HR as they can efficiently evaluate and compare information on
several employees within the organisation. This can then be used to decide upon items like promotions, trainings,
raises and future recruitment need of the organisation. However, it is of utmost importance that the HR inventory is
updated frequently to ensure it is relevant and useful. Gathering accurate information on each employee in the
company is often a time-consuming and cumbersome task, which is very challenging if maintained on paper. As the
human resource inventory is also known as the ‘snapshot’ of an organisation, a static inventory is of no value.

Indirect Compensation
Indirect compensation refers to the non monetary benefits provided to the employees by the organization they serve.
Indirect compensation is not paid directly to the employee. It is calculated as an additional component to the base
salary figure. Indirect compensation includes everything from legally obligated health insurance to child care, social
security etc.

Induction
Induction is the process of introducing a new employee to his/her job and organization and giving him all the
necessary information required by him/her to start his work. The purpose of induction is to welcome a new
employee and inform them about the organizational culture, introduce them to their team and co-workers, give them
an understanding of their job, help them understand how their work will be connected to his co workers and
informing him about the policies of the organization.

Induction helps to reduce the anxiety of a new entrant in the organization and helps him to feel a sense of
belongingness in the organization. If the induction process is neglected it may lead to confusion for the employee,
wasted time, wasted resources, absenteeism and turnover.

Therefore the objectives of induction are as follows:

1) To reduce the anxiety, shyness and nervousness a new employee feels when he joins new organization and is
surrounded by new people and a new environment.

2) To introduce the employees their job, company culture, policies, workplace, work environment and the people of
the organization.

3) To ensure that the new employee does not form a negative perception about the organization.

4) To reduce confusion and waste of time and resources.

5) To foster good relations among employees

6) To reduce the possibility of a new employee being exploited by an evil co worker

Induction may be formal or informal.

Informal induction is an unplanned induction and is carried out by small business units. In some cases of informal
induction the immediate supervisor may introduce the employee to his job, organization and co workers while in
some other cases the supervisor may appoint an existing employee as a buddy to the new employee. The buddy
explains all the processes of the organization and introduces the new employee to his surroundings in this case.
Formal induction is a pre planned induction process. It is carried out in large organizations. In formal induction a
programme is carefully designed to introduce the new employee to his job, colleague and organization. A formal
induction may take more time but it results in new employees learning better about their jobs and hence making
lesser errors and working with better coordination with coworkers.

A good induction programme should include the following:

1) Brief history of the organization, the organizations products, industry and competitors

2) The mission, vision and purpose of the organization

3) Policies and rules of the organization

4) The organizational structure and the various departments in the organization

5) Information about the employees job, its significance and the risks and hazards associated with the job

6) About the employee’s department

7) Terms and conditions of the employee’s service and the various benefits that the organization will provide the
employee

8) The career development and career progression opportunities available to the employee

Hence, this concludes the definition of Induction along with its overview.

Interpersonal Skills
These are the skills that people exhibit when interacting with others and are soft skills of a person. These skills are
extremely valuable as a learning curve.

There are mainly 10 type of interpersonal skills:

- Verbal communication

- Non-verbal communication

Interpersonal skills include everything from attitude, aptitude and listening skills. People with high interpersonal
skills project positive solutions and try to find solutions to problems. Such a skills are an important part of getting
successful in an organization.

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covers over 7000 business concepts from 6 categories.

Job Aids
Job aids are that enable or help an employee to work efficiently and effectively on the job.

It can be in the form of an instruction manual, technical supporting document, training document, database of
information, etc.
The human resource department along with the line managers and the top management needs to ensure that the
required job aids are present and available to every employee that will help them work towards the organization
objectives appropriately.

Job Analysis
Job analysis is having a thorough understanding about a particular job and understanding the key skill requirements,
roles, responsibilities, workplace processes, organizational hierarchy etc after conducting a research. Job analysis
involves collecting job related information and highlighting the basic requirements needed by an employee to
successfully fulfill the role & profile in order to achieve the goals & objectives set by the company. The analysis
also gives an overview on the physical, emotional & related human qualities required to execute the job
successfully.

HR managers use job analysis to do complete research on the job requirements, work activities, performance
standards, evaluation methods etc and give information to employees and prospective candidates so that they have a
better understanding on what is required from them. Job analysis is broadly bifurcated into two components i.e. job
description and job specification. Both these together give a complete understanding about job title, position,
location, qualification, skills, duties, responsibilities, skills etc.

Importance of Job Analysis


Job analysis is a critical part of recruiting a person for a particular role. Since it covers all the aspects which would
be required to complete a particular role, it is an important way to ensure that the right candidate is selected to
deliver the right output. Job analysis can be beneficial for both the HR managers (organization) and employees /
candidates. Job analysis aids the organization in recruitment and selection, performance management, training needs
identification, deciding compensation and benefits, etc.

A good job analysis helps in understanding the following:

1. Who can perform the job?

2. When and where the job has to be done?

3. What are the perks, salaries, benefits etc related to the job?

4. What educational qualifications, skill sets, work experience etc is required?

5. What is criteria for recruitment, selection, performance evaluation, appraisal, compensation etc?

HR managers user job analysis as a tool to ensure that the employees give their maximum output and fulfill the
objectives related to a job. They can lay down guidelines and frameworks which would help them recruit the most
apt person, ensure they have the right skills and monitor their roles, responsibilities & output. Job analysis helps HR
managers to decide the salaries, incentives & other benefits in accordance with the job title, position, location etc.

Similarly, job analysis is important for employees and prospective candidates as they get a thorough understanding
of what is actually required from them. Employees have a clear picture on their deliverables, the wages, workplace
environment, benefits etc. A candidate while applying can easily identify the best job for their which suits their
skills, training, previous experience, areas of interest etc. Thus job analysis is a critical component for both the
managers as well as employees in maximizing the output for the company.

Job Analysis Process


There is a streamlined process in getting complete information related to a job. It is important to have full
information related to a particular job, which would only help to get the right person for the right job. The job
analysis process can be summarized as below:

1. Identify the need of having a job analysis for a particular goal the company is looking for

2. Study the best possible methods to extract maximum information related to the job, responsibilities etc

3. Understanding the key parameters to be captured i.e. job requirements, context, deliverables

4. Actual data collection from within the organization & through competitor structure. It covers aspects related to
organization structure, reporting, job related activities, roles to be undertaken etc

5. Verification and preparing the final job analysis document covering all aspects related to the profile

6. Creating a job description and job specification.

Job Analysis Methods


The process of collecting information for job analysis has to be very thorough and completed with accurate research.
Some methods which can be used to collect job related information is given below:

1. Observation: Attributes like workplace environment, physical activities, techniques & skills required etc can all
be covered by simply observing existing or similar jobs

2. Interview: Interviewing employees helps in understanding the challenges, difficulties, emotional requirements,
complications, deliverables etc

3. Questionnaire: Questionnaires helps in obtaining large volumes of data and this data can be quantified & analysed
to understand the job requirements in a much better way

Difference between Job Description and Job Specification


A good job analysis helps in creating a job description and job specification, which are quite similar terms. Hence,
the difference is explained below. Job description and job specification are both a part of Job analysis given by a
company. There is a very minor difference between job description and job specification. Job description is used to
describe the various aspects of a job where as job specification covers the specific parameters required to complete
the job. Job description covers parameters like roles & responsibilities of the job, title, location where the job is
based out of, job duties, senior hierarchy, components / softwares to be used to complete the job. On the other hand,
job specification covers parameters like skills required, trainings undertaken, professional qualification, key
responsibilities & characteristics required to complete the given job. Both of these explained together explain the job
analysis for any position in a company.
Advantages of Job Analysis
Some of the benefits of having a job analysis are mentioned below:

1. It helps HR managers to have a systematic plan for recruitment and selection

2. Job analysis clearly defines the description & specification, which highlights the job requirements, skills,
incentives etc

3. It becomes easier for employees to understand their goals & objectives

4. HR managers can use job analysis information as a benchmark to evaluate performance of employees and
perform their appraisal / promotions accordingly

5. It helps in maintaining the organizational structure by having information related to reporting manager, job
position, title, location etc

Limitations of Job Analysis


1. The actual experience, difficulties, job related queries etc cannot be covered despite a thorough research

2. Job analysis cannot forecast the future requirements of a job in case of a major change in industry norms,
company policies etc
Hence, this concludes the definition of Job Analysis along with its overview.

Job Bidding
Job bidding is a process in which applicants are required to compete with other applicants for a job position that has
been posted by an employer or organization.

This method of recruitment is used when the number of applicants exceeds the number of job positions that are
being offered by a large number.

In another example of job bidding, the applicants are required to bid for a salary or a pay amount for the job they are
applying. Depending on the bids received from the applicants, the employer will select the final employees or invite
the best bidders for further recruitment and selection process.

Job Enrichment
Job enrichment is generally defined as the vertical expansion of a job. It implies increasing the motivation level of
an employee by improving the scope of the job by increasing the responsibility, autonomy and control in execution
of the job.

Job enrichment involves increasing the decision-making authority of the employee making the individual more
involved with more meaningful tasks on the job challenging his/her skills. Job enrichment is also known as job
enhancement.

Job enrichment helps not only in adding to the motivation of the employee but helps the organization achieve its
objectives more efficiently in the long run by more effective utilization of its employees.

Job Enlargement
Job enlargement is defined as the horizontal level expansion of a job by widening the scope and activities related to
the job. It involves increasing the duties and responsibilities associated at the same job level.

With increased responsibility and accountability, the employees do not perform a single job in a monotonous fashion
that can lead to boredom and reduction in working efficiency. Job enlargement makes the individual realize of his
increasing importance in the organization due to the increased scope of work that is being performed.

Job enlargement requires the management of the organization to provide their support in providing appropriate
training to the employees to make them able to adapt to the enlarged job scope. This can take up time but the final
results of this strategy will always be advantageous to the organization.

Job Evaluation
Job Evaluation is the method of relative valuation of jobs to determine the appropriate value or worth of a job and
preparing an appropriate pay structure in the organization. Job evaluation takes into consideration the tasks, duties
and responsibilities in the job description and the amount of effort that is required to be put in by the employee along
with the working environment conditions.

Job evaluation forms a base for managers to use for wage or salary negotiations. It also helps in finding the wage
structure for new jobs and also understanding their relative worth. Employees working in specialist positions will get
rated higher in the evaluation thus getting a higher pay that will increase the motivation levels for the employee.

Job Grade
Job grade is defined as a collection of jobs that are considered having the same value or worth for compensation
purposes. The jobs that form a part of a specific job grade have similar job descriptions and requirement of
knowledge, skills and abilities, thus making the pay scale similar for all those jobs.
A job grade is very similar to pay grade where all jobs having the same pay are grouped together, except that the
jobs in a job grade have similar descriptions and specifications whereas jobs in the same pay grade might not have
the same descriptions and classifications.

Job Grade classification helps in the recruitment process, compensation system and training and development
planning of the employees in the organization.

Job Group Analysis


A Job Group Analysis is an analysis performed on job groups to determine the gap between the actual and required
resources present in the individual job groups or at a consolidated level. This analysis covers each job group
individually to determine the number of employees present and the estimated requirement. It also takes into
consideration the variety of people present in the teams that can be on the basis of gender, nationality, etc.

The job group analysis helps in determining the requirement of employees at different levels for long-term
recruitment and succession planning. It also helps to determine if there is a deviation from regulatory constraints that
need to be met, and in case there is a discrepancy it highlights the need to balance the constitution of the human
resource structure.

Job Orientation
Job Orientation is the process in which a new joinee or a new employee is integrated into the organization by
making him/her aware of his place of work, team members, his immediate reporting managers, the business in
general, the policies, working hours, etc.

Job Ranking
Job evaluation is an important exercise in any organization today which determines the value/worth of a job in
totality with respect to other jobs in an organization. One of the most basic and simple method of doing it is the
ranking method.

In a ranking method, jobs are arranged in order of their value or merit to the organization. Accordingly the jobs at
the top of the list provide more value to the organization and its relative importance keeps decreasing as we move
down the list.

The 'worth' of a job is usually based on judgments of:

 Skill

 Effort (physical and mental)

 Responsibility

 Working conditions

Job Redesign
Job Redesign is basically a process of ‘restructuring’ the elements of a job (like tasks, duties and responsibilities). It
is usually done to the job more interesting, exciting, encouraging and inspiring for the employees. Some of the key
steps are:

 Revising the Job Content

 Analyzing Job-related Information

 Altering the Job Elements

 Reformation of Job Description and Specification


 Reshuffling the Job-related Tasks and Duties

Job Redesigning is usually done keeping in mind some/all of these advantages:

 Enhancing the Quality of Work-Life

 Increasing Organization’s and Employees’ Productivity

 Bringing the Sense of Belongingness in Employees

 Creating a Right Person-Job Fit

Job Regulation
Job Regulation means creation and implementation of some rules which directly or indirectly affect the employment
relations, employees, employers and trade unions. One of the way of creation of these rules is by joint mechanism or
collective bargaining by both employees and employer. Sometimes the job regulation mechanism is already in place
or the rules are already implemented and constant since years in the companies.

Job Satisfaction
Job satisfaction is a measure of how happy an individual is with his or her job. An employee who is happier with
his/her job is supposed to be more satisfied. This in turn contributes to the overall efficiency at the job and good
quality of work.

The elements which contribute to job-satisfaction are

 Positive attitude

 Balanced lifestyle

 A sense of purpose

 Knowing your options

 Self-awareness

 Variety

 Challenge

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