Demand For Human Capital

Demand for labour capital explains the relationship between availability of labour and wage-scale.

If the number of labour increases the wage rate per labour decreases , because supply of labour is more than demand, so there is a possibility for the organisation to convince labour in less rate as per their ability and if the demand for labour is high and supply is low than the condition will be just opposite.

It is the attributes gained by a worker through education and experience.

So, we can say that there is an inverse relationship between supply of labour , availability of labour and the wage rate.

Definition of Human Capital

The set of skills which an employee acquires on the job, through training and experience, and which increase that employee's value in the marketplace.

"Human Capital is the productive capacity embedded in an individual that result from natural capability, education, training and experience"

Human Resource Audit

According to Dale Yoder

"Refers to the evaluation and examination of policies , practices and procedures to determine the effectiveness and efficiency of human resource."

SCOPE OF HUMAN RESOURCE AUDIT

• Audit of all the HR functions.
• Managerial compliance audit.
• Human resource climate audit.
• Human resource corporate strategy audit.

BENEFITS OF HUMAN RESOURCE AUDIT

• Helps to find out proper contribution of HR department towards the organisation.
• Reduce the HR cost.
• Motivation of HR personnel.
• Find problems of HR and solve them.
• Sound performance appraisal system.
• Systematic job analysis.
• Clarification of HR department duties and Responsibilities.

APPROACHES OF HUMAN RESOURCE AUDIT

• Comparative approach.
• Outside authority approach.
• Statistical approach.
• Compliance approach.
• Management by objective.

OBJECTIVES OF HUMAN RESOURCE AUDIT

• Building Organisation structure.
• Proper communication and feedback.
• Status of industrial relation manager.
• Evaluate implementation of policies.
• Evaluate performance of personnel staff.
• Seek information of failure and success of HR.
• Seek priorities and goals of management philosophy.
• Greater delegation of authority.

AREAS OF HUMAN RESOURCE AUDIT

• Mission statement relating to HRM.
• Objectives , goals and strategies of HRM.
• Accomplishment of HRM.
• Programmes of HRM including Detailed procedures.
• HRM policies.
• Role of HRM in total quality management.

360-degree Feedback

Definition

360-degree feedback is an evaluation method that incorporates feedback from the worker, his/her peers, superiors, subordinates, and customers. Results of these confidential surveys are tabulated and shared with the worker, usually by a manager. Interpretation of the results, trends and themes are discussed as part of the feedback. The primary reason to use this full circle of confidential reviews is to provide the worker with information about his/her performance from multiple perspectives. From this feedback, the worker is able to set goals for self-development which will advance their career and benefit the organization. With 360-degree feedback, the worker is central to the evaluation process and the ultimate goal is to improve individual performance within the organization. Under ideal circumstances, 360-degree feedback is used as an assessment for personal development rather than evaluation.

OBJECTIVES OF 360 DEGREE FEEDBACK

• Focuses on personal and career development.
• Helps in creating personalized action plan.
• Focuses on team effectiveness skills.
• Allows group to come together on goals.
• Performance assessment.
• Development of employee.

USES OF 360 DEGREE FEEDBACK

• Performance appraisal.
• Performance management.
• Attitude survey.
• Customer satisfaction survey.
• Organisation climate survey.
• Training needs assessment.
• Evaluation of training.
• Employee development.

BENEFITS OF 360 DEGREE FEEDBACK

• Organizational climate fosters individual growth.
• Criticisms are seen as opportunities for improvement.
• Proper framing of feedback method by management.
• Assurance that feedback will be kept confidential.
• Development of feedback tool based on organizational goals and values
• Feedback tool includes area for comments.
• Brief workers, evaluaters and supervisors about purpose, uses of data and methods of survey prior to distribution of tool.
• Train workers in appropriate methods to give and receive feedback.
• Support feedback with back-up services or customized coaching.

LIMITATION OF 360 DEGREE FEEDBACK

• Feedback tied to merit pay or promotions.
• Comments traced to individuals causing resentment between workers.
• Feedback not linked to organizational goals or values.
• Use of the feedback tool as a stand alone without follow-up.
• Poor implementation of 360-degree tool negatively affects motivation.
• Excessive number of surveys are required of each worker with few tangible results provided to individuals.

Six Sigma Methods

Methods

• DMAIC is used for projects aimed at improving an existing business process.
• DMADV is used for projects aimed at creating new product or process designs.

DMAIC

The DMAIC project methodology has five phases:

• Define the problem, the voice of the customer, and the project goals, specifically.
• Measure key aspects of the current process and collect relevant data.
• Analyze the data to investigate and verify cause-and-effect relationships. Determine what the relationships are, and attempt to ensure that all factors have been considered. Seek out root cause of the defect under investigation.
• Improve or optimize the current process based upon data analysis using techniques such as design of experiments, poka yoke or mistake proofing, and standard work to create a new, future state process. Set up pilot runs to establishprocess capability.
• Control the future state process to ensure that any deviations from target are corrected before they result in defects. Implement control systems such as statistical process control, production boards, and visual workplaces, and continuously monitor the process.

DMADV 

The DMADV project methodology,  features five phases:

• Define design goals that are consistent with customer demands and the enterprise strategy.
• Measure and identify CTQs (characteristics that are Critical To Quality), product capabilities, production process capability, and risks.
• Analyze to develop and design alternatives, create a high-level design and evaluate design capability to select the best design.
• Design details, optimize the design, and plan for design verification. This phase may require simulations.
• Verify the design, set up pilot runs, implement the production process and hand it over to the process owner.