Tuesday, May 13, 2008

Human Resource Management(For Batch of 2003 and Earlier) - 2

Q4 (a) Define TQM. Examine the elements involved in TQM and evaluate the advantages and disadvantages of TQM.

Answer4 (a)

The ISO 8402 has defined TQM as: “ Management approach of the organization, centered on quality, based on the participation of all its members and aiming at long term success through customer satisfaction and benefits to all members of the organization and to society” or in other words it can defined as a cost effective system for integrating the continuous quality improvement efforts of people at all levels in the organization to deliver products and services which ensures quality satisfaction.

Elements of TQM

TQM emphasizes on various elements that support the philosophies of customer focus, continuous improvement, defect prevention and recognition that all shares quality responsibility. The basic elements are as follows:
1. Management Commitment to quality: the implementation of TQM should start from top and the management has to be unwavering in its commitment to quality. The management should reflect proper control on the part of the quality of goods and services that it is giving to its customers.
2. Focus on customers: the basic emphasis of TQM should be on customer satisfaction and the management should assure that the customer’s need and expectations should be understood and met.
3. Prevention rather that detection of defects: this philosophy seeks to prevent poor quality rather than detecting and sorting out defects. The technologies evolved to prevent defects are statistical process control, continuous process improvement and problem solving and system failure analysis.
4. Universal quality responsibility: according to TQM, quality is considered as a guiding philosophy that everyone shares in an organization and is not only the responsibility of the quality control department. Everyone that is responsible for the production of the good and services should share the credit of the quality of the goods and services given to the customer.
5. Quality measurement: it plays a very important aspect of TQM and quality being a measurable commodity one should be aware as to what current quality levels are prevailing and what amount of improvement is to be made in order to improve the quality of the product and should be able to meet the customer satisfaction.
6. Continuous improvement: TQM strives for continuous improvement in all areas, which is made possible by typing in closely with quality measurement and universal quality responsibility. The basic objective of this element is that it aims at zeroing on the process deficiencies that allowed the problem. It is not being attempted on a grand scale but pursued in small, incremental and manageable steps.
7. Root cause correction action: TQM seeks to identify the root cause of the problems and by implanting corrective actions that address problems at the root cause level which includes problem solving approach and systems failure analysis approach including fault free analysis and managing tracking tools.
8. Employee’s involvement and empowerment: according to TQM every employee is an active participant in goal attainment and should be provided with necessary tools and authority to overcome obstacle to achieve the goal of customer satisfaction.
9. Synergy of team: TQM emphasizes on synergy of team to tackle the problem and challenges of continuous improvement in the quality of the goods and services provided to the customer.
10. Benchmarking: This element involves defining competitor’s best features and adopting the best practices of these organization for once own operations.
11. Inventory reduction: also known as just in time inventory management, intends to address the material shortages and quality improvement i.e. the ultimate impact of this concept is that as inventory grew smaller, quality improved.
12. Value improvement: The essence of value improvement is the ability to meet customer expectation while removing unnecessary cost. Another principle of TQM is to develop long term relationship with a few high quality suppliers, rather than selecting those suppliers with the lowest initial cost. TQM philosophy believes that lower initial cost does not reflect the lowest overall life cycle cost if quality problem later immerges with the low bidder supplies.
13. Training: this is the basic element of TQM process and can be developed by encouraging continuous improvement in the quality and assuring customer satisfaction.

Advantages of TQM

1. It is able to generate higher profits in accordance with customer satisfaction.
2. Helps in manufacturing better quality products at lower cost.
3. Reduces wastages and prevents poor quality rather than detecting and correcting defects.
4. It eliminates shortage in the supply of inputs and insures that the organization does not purchase excessive inventory.
5. TQM analysis and improves the basic business system and subsystem to match customer requirements which helps in reducing product development time.
6. Increases the flexibility in meeting the market demand and helps in ascertaining the requirements of the customer and evolve systems to do a better job in shorter time.
7. TQM tends to motivate human resource, as it demands for employee’s involvement and empowerment.
8. It encourages the company to face competition, which is facilitated by better quality product, lower possible cost and a team of dedicated employees.

Disadvantages of TQM

1. It is enable to provide with reserves, which lead to disappoint, anxiety and even panic among the employees of the organization.
2. It is a time consuming process.
3. It gives rise to expectation on the part of the customer as the customer become knowledgeable about what a quality organization is all.

Q4 (b) What are Quality Circles? Examine the process involved in Quality Circles and evaluate the advantages and disadvantages of quality circles.

Answer4 (b) Quality Circle can be defined as “a small group of employees from the same work area that meet regularly and voluntarily to identify, solve and implement solutions to work related problems.” i.e. it is the group of people who comes together to solve the work related problems in an effective manner.

Characteristics of Quality Circles:

ü It ranges from 4to 15 members and 8 members are considered to be the norm.
ü All members are from the same work area that gives the circle an identity.
ü There is one supervisor who usually works as a leader who moderates a discussion and promotes consensus but does not has the power of issuing orders or decisions.
ü Usually meets once a week to work on the problems faced by them.
ü Training is being given to each member of the Quality Circle bout the rules of the participation in the circle, the mechanics of running a meeting and making management presentation, and techniques of group problem solving.
ü It is the members and not the management who choose the problem to work upon.
ü The members of the circle are being helped by technical specialist and management to solve a particular problem.

Process of Quality Circle
The basic aim of the circle members is to identify the problem and then analyze the problem and to find the solutions for the same. It also aims to achieve the objective through the development of people. The basic process involved in Quality Circle consists of the following points:

1. Problem collection: the primary task of the member of the circle is to create a problem bank and then to give priority to each problem depending on its benefit potential and urgency.
2. Problem Analysis: A good number of data collection tools, charts and statistical techniques to establish facts, before proceeding to find solutions.
3. Problem Solutions: A proper environment and group thinking together helps in finding the proper solutions to the problems. The people involved in the work area are best equipped to find the solutions to the problem in a more practical manner.
4. Management Presentation: Through management presentation, the circle members present there solutions to the management, highlight the benefits anticipated from the solution and if there is an acceptance to there solution then it acts a motivation factors.
5. Implementation, review and follow up: After getting the sanction from the management he next step is to plan for the implementation of the solution and follow up that are to carried out after a period of time.

So to conclude we can say the quality circle works as group that works in the fulfillment of the objective that leads to a problem free working toward the objective of the organization.

Q5 (a) What is manpower planning? Explain the various steps involved in the manpower planning.

Answer5 (a)

Manpower planning is defined as the process by which Management determines how the organization should move from its current manpower position to desired manpower position. Through planning, management strives to have the right time, doing things, which result in both the organization and individual receiving maximum long run benefits. Manpower planning is concerned with two things:
1. Planning of manpower requirement
2. Planning of manpower supplies.

The various benefits of Manpower Planning are:

v Forecasting of long-term manpower requirements helps to forecast the compensation costs involved and have an opportunity for developing existing manpower needs to fill the future openings through promotions which acts as a factor towards motivating the employees.
v Manpower Planning also enables the determination of the weaknesses of the existing manpower so that corrective training could be incorporated..

Steps involved in Manpower Planning

v Anticipating Manpower Needs: for securing maximum motivation, it is always better to encourage internal recruitment therefore it is more effective to try and meet the manpower requirements from the supplies existing within the organization itself which in turn will secure optimum motivation and ensure retention within the organization of its people.
v Planning job requirement and description: An important part in the manpower planning consists of the planning job requirement, which should be clearly determined through a minute study of the duties to be performed in that job.
Job Information

Job information helps in many ways and more particularly for the following:
ü Adequate Recruitment: the recruitment officer should have clear information regarding the type of person to be recruited that could be gathered from the job description and man specification.
ü Adequate Training: it is necessary for the training manager to know the job’s skills, which have to be learnt by the employee recruited.
ü Adequate Salary Structures: Job description is necessary for determining job grading structures appropriately stating the job value relationship internally.
ü Fair Appraisal: Performance appraisal cannot be fair unless the appraisal is clear in his mind about the requirements.

Job Description

A job description can be defined as written records of the duties, responsibilities and conditions of the job. The methods that generally provides the data are
ü Observation of the employees while performing their work.
ü Study of specially maintained diaries.
ü A review of critical incidents.
ü Discussion with departmental head or supervisor.
ü Discussion with outside consultants and experts.

v Skills analysis: the managerial abilities can be viewed the different emphasis placed by various schools of management thoughts. For e.g. according to the management science group, mangers are perceived as decision makers. And the behavioral scientist emphasizes the leadership and motivation abilities of mangers. However the skills required for successful executives can be divided into four types (1) Decision making skills (2) Leadership skills (3) Communication Skills (4) Organizational and social skills.
v Selecting adequate source or recruitment: there are two basic methods for the recruitment of people I the organization i.e. the internal source and the external source. The internal source includes the recruitment of the people who are already working in the organization in the form of there promotions or transfer on the basis of the employee’s merits, initiatives, accuracy of work, job knowledge and personal records. The internal source of recruitment is the best method that is being used in order to motivate the employees and to boost their morale and to develop loyalty among the employees for the organization.
The external source of recruitment involves the following points:
ü Recruitment advertising: It involves inviting applications from outside the organization through advertisements in the new papers and magazines.
ü Reference to employment exchange.
ü Recruitment from colleges.
ü A study of central applications’ file maintained of past applicants not selected at that time.
ü Use of special consultants for recruiting.

With the help of all these points we can say that external recruitment plays an important part in selecting the right kind of a person for the right kind of job.

So to conclude we can say that process of manpower planning need to have all the steps properly incorporated so as to choose the right number of recruitment for the right number of jobs.

Q5 (b) Explain what is meant by Human Resource Planning.

Answer5 (b) Human Resource planning can be defined as a process by which an organization ensures that it has the right number and kinds of people, at the right place, at the right time, capable of effectively and efficiently completing those tasks that will help the organization achieve its overall objectives or in other words HRP can be defined as planning for the future personnel needs of an organization, taking into account both internal activities and factors in the external environment.

Need and Importance of HRP

Human resource Planning translates the organization objectives and plans into the number of workers needed to meet these objectives. The need and importance of HRP is as follows:

ü HRP helps in determining the future manpower requirements and avoids problems like over staffing or understaffing in the organization.
ü HRP helps in tackling with the factors like competition, technology, government policies etc. that generates changes in the job content, skill requirements and number and types of personnel required.
ü Now a days there is a demand of exceptional intellectual skills while the existing staff becomes redundant, the HR manager has to attract and retain qualified and skilled personnel and also required to deal with issues like career development, succession planning for which he takes the help of HRP.
ü A proper and realistic human resource plan is needed to ensure equal employment and promotional appointments to the candidates fro weaker sections, physically handicapped and socially and politically oppressed citizens.
ü HRP provides valuable and timely information for various designing and execution of personnel functions like recruitment, selection, transfers, promotions, layoffs, training and development and performance appraisal.
ü It helps the organization to anticipate imbalance in human resources, which in turn will facilitate reduction in personal costs.
ü HRP facilitates planning for future needs which will help in better planning of assignments to develop managers and to ensure the organization has a steady supply of experienced and skilled employees.

Factors affecting Human Resource Planning

HRP is a dynamic and on going process. The process of updating is not very simple, since HRP is influenced by many factors, which are as follows:
ü The type of organization determines the production process and number and type of staff needed.
ü The human resource needs of an organization depend on the strategic plan adopted by it. For e.g. the growth of a business calls for hiring of additional labor, while mergers will need a plan for layoffs.
ü Organization operates under different political, social environment and has to carefully formulate the HR policies and so the HR manager has to evolve suitable mechanism to deal with uncertainties through career developments, succession planning, retirement schemes etc.
ü HRP also depends on the time periods and accordingly the short and long-term plans are adopted. And this time span is based on the degree of environmental uncertainties.
ü The type and quality of information used in making forecasting is an important factor influencing HRP. Accurate and timely human resource information system helps in getting better quality personnel.
ü HRP is required to ensure that suitable candidates should be appointed at the right kind of job.

So these are some of the factors that affect the human resource planning.

Limitations of Human Resource Planning

ü It is very difficult to ascertain future manpower requirements of an organization, as future is always uncertain.
ü It is more relevant to the countries that face the problem of scarcity of human resources.
ü It is a time consuming and costlier process.
ü It is beneficial in the organizations that adopt a professional approach and at the same time are conscious about the changing environment.
ü HRP is beneficial where adequate skilled manpower is available. .
ü HRP is also made difficult in the organizations that have a very high labor turnover.

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