Jagannath Institute of Management Sciences

Lajpat Nagar

BBA Sem IV

‘UNIT - I’

EVOLUTION OF HRM

Human resource management (HRM, or simply HR) is the management of

an organization's workforce, or human resources.

It is responsible for the attraction, selection, training, assessment, and rewarding of employees, while also overseeing organizational leadership and culture, and ensuring compliance with employment and labor laws. In circumstances where employees desire and are legally authorized to hold a

collective bargaining agreement, HR will also serve as the company's primary liaison

with the employees' representatives (usually a labor union). HR is a product of the human relations movement of the early 20th century, when researchers began documenting ways of creating business value through the strategic management of the workforce.

The function was initially dominated by transactional work such

as payroll and benefits administration, but due to globalization, company consolidation, technological advancement, and further research, HR now focuses on

strategic initiatives like mergers and acquisitions, talent management, succession

planning, industrial and labor relations, and diversity and inclusion. EVOLUTION The history of personnel management begins around the end of the 19th century,

when welfare officers (sometimes called ‗welfare secretaries‘) came into being. They

were women and concerned only with the protection of women and girls. Their

creation was a reaction to the harshness of industrial conditions, coupled with

pressures arising from the extension of the franchise, the influence of trade unions and

the labor movement, and the campaigning of enlightened employers, often Quakers,

for what was called ‗industrial betterment‘.As the role grew there was some tension

between the aim of moral protection of women and children and the needs for higher

output. FIRST WORLD WAR The First World War accelerated change in the development of personnel

management, with women being recruited in large numbers to fill the gaps left by men

going to fight, which in turn meant reaching agreement with trade unions (often after

bitter disputes) about ‗dilution‘– accepting unskilled women into craftsmen‘s jobs and

changing manning levels. 1920’S During the 1920s, jobs with the titles of ‗labor manager‘ or ‗employment manager‘

came into being in the engineering industry and other industries where there were

large factories, to handle absence, recruitment, dismissal and queries over bonuses and

so on. Employers‘ federations, particularly in engineering and shipbuilding, negotiated

national pay rates with the unions, but there were local and district variations and

there was plenty of scope for disputes.

1930’S During the 1930s, with the economy beginning to pick up, big corporations in these

newer sectors saw value in improving employee benefits as a way of recruiting,

retaining and motivating employees. But older industries such as textiles, mining and shipbuilding which were hit by the

worldwide recession did not adopt new techniques, seeing no need to do so because

they had no difficulty in recruiting labor. SECOND WORLD WAR The Second World War brought about welfare and personnel work on a full-time

basis at all establishments producing war materials because an expanded Ministry of

Labor and National Service insisted on it, just as the Government had insisted on

welfare workers in munitions factories in the previous conflict. The government saw specialist personnel management as part of the drive for greater

efficiency and the number of people in the personnel function grew substantially;

there were around 5,300 in 1943. By 1945, employment management and welfare work had become integrated under

the broad term ‗personnel management‘. Experience of the war had shown that output

and productivity could be influenced by employment policies. The role of the personnel function in wartime had been largely that of implementing

the rules demanded by large-scale, state-governed production, and thus the image of

an emerging profession was very much a bureaucratic one. Following the development of poor industrial relations during the 1960s a Royal Commission under Lord Donovan was set up. In the 1960s and 70s employment started to develop significantly. At the same time personnel techniques developed using theories from the social

sciences about motivation and organisational behaviour; selection testing became

more widely used, and management training expanded. During the 1970s, specialisms started to develop, with reward and resourcing, for

example, being addressed as separate issues. Around the mid-80s, the term ‗human resource management‘ arrived from the USA.

The term ‗human resources‘ is an interesting one: it seemed to suggest that

employees were an asset or resource-like machines, but at the same time HR also

appeared to emphasise employee commitment and motivation. Reporting in 19681, it was critical of both employers and unions; personnel

managers were criticised for lacking negotiation skills and failing to plan industrial

relations strategies. At least in part, Donovan suggested, these deficiencies were a consequence of management‘s failure to give personnel management sufficiently high priority. EVOLUTION OF INDUSTRIAL REVOLUTION Industrial Revolution: Adam Smith: specialization and division of labor. Robert Owens: Pioneer of HRM, performance appraisal and pay for performance (fair treatment of employees)

Scientific management Frederic Taylor: Father of scientific management a. Definition: Systematic analysis and breakdown of work into the smallest mechanical components and rearranging them into the most efficient combination. b. Steps:

Job analysis—selection—training—rewards. (3) Industrial psychology Henry Fayol‘s management functions: 1. Planning, organizing, communicating, coordina- ting and controlling. 2. F. & L. Gilbert's principles of work simplification (time and motion studies). 3. Henry Gantt‘s principles of work scheduling. 4. Continuation of scientific management. (4) Human behavior and relations The Hawthorne Studies by Westing House The happy workers are the most productive workers. (The Pet Milk theory) Max Weber: the Ideal Bureaucracy. Chris Argyris: Individual and organization—mutual adjustment.

Affected by the theories of behavioral science and system theory.

HRM in India HRM in India References about Personnel management in Artasastra which indicates

job description of supervisor and performance linked pay foe gold smiths Tradional

craftsman goods shipped to Europe Master servant relationship in 17 th centuary

Evolution… 1828-Robert Owen father of co-operative movement wrote a book titled

as ―New view society‖-Improving working conditions and work life of labourers

After 1850 British rulers institutionalized for running the government which leads to

personnel management system 1890 NMLokhande 1911 F W Taylor 1921-Hawthorn

studies 1931-Role of Royal commission of labour Industrial revolution Awakwning of

labour Government attitude towards labour Evolution 1941-First tripartite labour conference 1948-Factories Act Cultural and

social changes Changes in social value of labour Changes in managerial value 1950-

1969 III five year plans-Private and public sector projects 1970- Militancy in textile

sector in Mumbai 1980-Productivity agreements 1990Personnel management and IR

in public sector undertakings Evolution After 1990 the emphasis is shifted to human values and productivity

through people Role of Public sector companies like BHEL, SAIL and SBI 1995

Progressive efforts of in HR 1997- Focused on product and customer Leading to

customer satisfaction, bench marking, Application TQM, core competence,

empowerment and learning organisation Evolution Transition of HR- Labour relatios Personnel management Human resources management Human capital management Strategic HRM

HUMAN RESOURCE MANAGEMENT ( H R M ) Definition 1 – Integration ―HRM is a series of integrated decisions that form the employment relationships;

their quality contributes to the ability of the organizations and the employees to

achieve their objectives.‖ Definition 2 – Influencing ―HRM is concerned with the people dimensions in management. Since every

organization is made up of people, acquiring their services, developing their skills,

motivating them to higher levels of performance and ensuring that they continue to

maintain their commitment to the organization are essential to achieving

organizational objectives. This is true, regardless of the type of the organization –

government, business, education, health, recreational, or social action.‖ Definition 3 – Applicability ―HRM planning, organizing, directing and controlling of the procurement,

development, compensation, integration, maintenance and separation of human

resources to the end that individual, organizational and social objectives are

accomplished.‖ MEANING OF HRM: - HRM is management function that helps managers to recruit, select, train and develop

members for an organization. Obviously HRM is concerned with the people‘s

dimensions in organizations. HRM refers to set of programs, functions, and activities

designed and carried out Core elements of HRM People: Organizations mean people. It is the people who staff and manage organizations. Management: HRM involves application of management functions and

principles for acquisitioning, developing, maintaining and remunerating employees in organizations. Integration & Consistency: Decisions regarding people must be integrated and consistent. Influence: Decisions must influence the effectiveness of organization resulting

into betterment of services to customers in the form of high quality products supplied at reasonable cost. Applicability: HRM principles are applicable to business as well as non-business organizations too, such as education, health, recreation and the like. OBJECTIVES OF HRM: - 1. Societal Objectives: To be ethically and socially responsible to the needs and

challenges of the society while minimizing the negative impact of such demands upon

the organization. 2. Organizational Objectives: To recognize the role of HRM in bringing about

organizational effectiveness. HRM is only means to achieve to assist the organization

with its primary objectives.

3. Functional Objectives: To maintain department‘s contribution and level of services at a level appropriate to the organization‘s needs. 4. Personal Objectives: To assist employees in achieving their personal goals, at

least in so far as these goals enhance the individual‘s contribution to the organization.

This is necessary to maintain employee performance and satisfaction for the purpose

of maintaining, retaining and motivating the employees in the organization. Difference Between Personnel Management And Human Resource Management Human resource management is the new version of personnel management. There is

no any watertight difference between human resource management and personnel

management. However, there are some differences in the following matters. 1. Personnel management is a traditional approach of managing people in the

organization. Human resource management is a modern approach of managing people

and their strengths in the organization. 2. Personnel management focuses on personnel administration, employee welfare and

labor relation. Human resource management focuses on acquisition, development,

motivation and maintenance of human resources in the organization. 3. Personnel management assumes people as a input for achieving desired output.

Human resource management assumes people as an important and valuable resource

for achieving desired output. 4. Under personnel management, personnel function is undertaken for employee's

satisfaction. Under human resource management, administrative function is

undertaken for goal achievement. 5. Under personnel management, job design is done on the basis of division of labor.

Under human resource management, job design function is done on the basis of group

work/team work. 6. Under personnel management, employees are provided with less training and

development opportunities. Under human resource management, employees are

provided with more training and development opportunities. 7. In personnel management, decisions are made by the top management as per the

rules and regulation of the organization. In human resource management, decisions

are made collectively after considering employee's participation, authority,

decentralization, competitive environment etc. 8. Personnel management focuses on increased production and satisfied employees.

Human resource management focuses on effectiveness, culture, productivity and

employee's participation. 9. Personnel management is concerned with personnel manager. Human resource management is concerned with all level of managers from top to bottom. 10. Personnel management is a routine function. Human resource management is a strategic function.

SCOPE OF HRM: - From Entry to the Exit of an employee in the organization Scope of HRM can be described based on the following activities of HRM. Based on

these activities we can summarize the scope of HRM into 7 different categories as

mentioned below after the activities. Lets check out both of them. HRM Activities – 1. HR Planning 2. Job Analysis 3. Job Design 4. Recruitment & Selection 5. Orientation & Placement 6. Training & Development 7. Performance Appraisals 8. Job Evaluation 9. Employee and Executive Remuneration 10. Motivation 11. Communication 12. Welfare 13. Safety & Health 14. Industrial Relations 7 Categories of Scope of HRM 1. Introduction to HRM 2. Employee Hiring 3. Employee and Executive Remuneration 4. Employee Motivation 5. Employee Maintenance 6. Industrial Relations 7. Prospects of HRM ROLE OF HRM 1. Advisory Role: HRM advises management on the solutions to any problems affecting people, personnel policies and procedures. a. Personnel Policies: Organization Structure, Social Responsibility, Employment

Terms & Conditions, Compensation, Career & Promotion, Training & Development

and Industrial Relations. b. Personnel Procedures: Relating to manpower planning procedures, recruitment

and selection procedures, and employment procedures, training procedures,

management development procedures, performance appraisal procedures,

compensation procedures, industrial relations procedures and health and safety

procedures. 2. Functional Role: The personnel function interprets and helps to communicate

personnel policies. It provides guidance to managers, which will ensure that agreed

policies are implemented.

3. Service Role: Personnel function provides services that need to be carried out by

full time specialists. These services constitute the main activities carried out by

personnel departments and involve the implementation of the policies and procedures

described above.

Role of HR Managers (Today) 1. Humanitarian Role: Reminding moral and ethical obligations to employees 2. Counselor: Consultations to employees about marital, health, mental, physical and career problems. 3. Mediator: Playing the role of a peacemaker during disputes, conflicts between individuals and groups and management. 4. Spokesman: To represent of the company because he has better overall picture of his company‘s operations. 5. Problem Solver: Solving problems of overall human resource management and long-term organizational planning. 6. Change Agent: Introducing and implementing institutional changes and installing organizational development programs 7. Management of Manpower Resources: Broadly concerned with leadership both in the group and individual relationships and labor-management relations.

Role of HR Managers (Future) 1. Protection and enhancement of human and non-human resources 2. Finding the best way of using people to accomplish organizational goals 3. Improve organizational performance 4. Integration of techniques of information technology with the human resources 5. Utilizing behavioral scientists in the best way for his people 6. Meeting challenges of increasing organizational effectiveness 7. Managing diverse workforce

FUNCTIONS OF HRM ALONG WITH OBJECTIVES

HRM Objectives Supporting HRM Functions

Social Objectives (3) Legal Compliance

Benefits

Union Management Relations

Organizational Objectives (7) Human Resource Planning

Employee Relations

Recruitment & Selection

Training & Development

Performance Appraisals

Placement & Orientation

Employee Assessment

Functional Objectives (3) Performance Appraisals

Placement & Orientation

Employee Assessment

Personal Objectives (5) Training & Development

Performance Appraisals

Placement & Orientation

Compensation

Employee Assessment

Managerial Functions of HRM 1. Planning: Plan and research about wage trends, labor market conditions, union demands and other personnel benefits. Forecasting manpower needs etc.

2. Organizing: Organizing manpower and material resources by creating authorities and responsibilities for the achievement of organizational goals and objectives. 3. Staffing: Recruitment & Selection

4. Directing: Issuance of orders and instructions, providing guidance and motivation of employees to follow the path laid-down.

5. Controlling: Regulating personnel activities and policies according to plans. Observations and comparisons of deviations Operational Functions of HRM 1. Procurement: Planning, Recruitment and Selection, Induction and Placement 2. Development: Training, Development, Career planning and counseling. 3. Compensation: Wage and Salary determination and administration 4. Integration: Integration of human resources with organization.

5. Maintenance: Sustaining and improving working conditions, retentions, employee communication

6 . Separations: Managing separations caused by resignations, terminations, lay offs, death, medical sickness etc.

CHALLENGES OF HRM IN INDIAN ECONOMY or CHALLENGES OF MODERN MANAGEMENT 1. Globalization: - Growing internationalization of business has its impact on HRM in terms of problems of unfamiliar laws, languages, practices, competitions,

attitudes, management styles, work ethics and more. HR managers have a challenge to

deal with more functions, more heterogeneous functions and more involvement in

employee‘s personal life. 2. Corporate Re -organizations: - Reorganization relates to mergers and acquisitions,

joint ventures, take over, internal restructuring of organizations. In these situations, it

is difficult to imagine circumstances that pose a greater challenge for HRM than reorganizations itself. It is a challenge to manage employees‘ anxiety, uncertainties, insecurities and fears during these dynamic trends. 3. New Organizational forms: - The basic challenge to HRM comes from the

changing character of competitions. The competition is not between individual firms

but between constellations of firm. Major companies are operating through a complex

web of strategic alliances, forgings with local suppliers, etc. These relationships give

birth to completely new forms of organizational structure, which highly depend upon

a regular exchange of people and information. The challenge for HRM is to cope with

the implications of these newly networked relations more and more, in place of more

comfortable hierarchical relationships that existed within the organizations for ages in

the past. 4. Changing Demographics of Workforce: - Changes in workforce are largely

reflected by dual career couples, large chunk of young blood between age old

superannuating employees, working mothers, more educated and aware workers etc.

These dynamic workforces have their own implications for HR managers and from

HRM point of view is a true challenge to handle. 5. Changed employee expectations: - With the changes in workforce

demographics, employee expectations and attitudes have also transformed.

Traditional allurements like job security, house, and remunerations are not much

attractive today, rather employees are demanding empowerment and equality with

management. Hence it is a challenge for HRM to redesign the profile of workers, and

discover new methods of hiring, training, remunerating and motivating employees. 6. New Industrial Relations Approach: - In today‘s dynamic world, even unions

have understood that strikes and militancy have lost their relevance and unions are

greatly affected by it. The trade union membership has fallen drastically worldwide

and the future of labor movement is in danger. The challenge before HRM is to adopt

a proactive industrial relations approach which should enable HR specialist to look

into challenges unfolding in the future and to be prepared to convert them into

opportunities. 7. Renewed People Focus: - The need of today‘s world and business is the people‘s

approach. The structure, strategy, systems approach which worked in post war era is

no more relevant in today‘s economic environment which is characterized by over

capacities and intense competition. The challenge of HR manager is to focus on

people and make them justifiable and sustainable. 8. Managing the Managers: - Managers are unique tribe in any society, they believe

they are class apart. They demand decision-making, bossism, and operational freedom.

However in the post liberalization era, freedom given to managers is grossly misused to

get rid of talented and hard working juniors. The challenge of HRM is how

to manage this tribe? How to make them realize that the freedom given to them is to

enable them make quick decisions in the interest of the organization and not to resort

to witch-hunting. 9. Weaker Society interests: - Another challenge for HRM is to protect the interest

of weaker sections of society. The dramatic increase of women workers, minorities

and other backward communities in the workforce has resulted in the need for

organizations to reexamine their policies, practices and values. In the name of global

competition, productivity and quality the interests of the society around should not be

sacrificed. It is a challenge of today‘s HR managers to see that these weaker sections

are neither denied their rightful jobs nor are discriminated against while in service.

10. Contribution to the suc cess of organizations: - The biggest challenge to an HR

manager is to make all employees contribute to the success of the organization in an

ethical and socially responsible way. Because society‘s well being to a large extent

depends on its organizations.

‘UNIT - II’

HUMAN RESOURCE PLANNING ( H R P ) Definition 1: - Need, Availability, Supply=Demand ―HRP includes estimation of how many qualified people are necessary to carry out

the assigned activities, how many people will be available, and what, if anything,

must be done to ensure personnel supply equals personnel demand at the appropriate

point in the future.‖ Definition 2: - Right numbers, Capability, Organization Objectives ―HRP is a Process, by which an organization ensures that it has the right number and

kind 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.‖ Definition 3: - Translation of objectives into HR numbers―HRP is a process of

translating organizational objectives and plans into the number of workers needed to

meet those objectives.‖ MEANING / PURPOSE OF HRP In simple words HRP is understood as the process of forecasting an organization‘s future demand for and supply of the right type of people in the right numbers. It is only after HRP is done, that the company can initiate and plan the recruitment and selection process. HRP is a sub-system in the total organizational planning. HRP facilitates the realization of the company‘s objectives by providing right type and right number of personnel. HRP is important because without a clear-cut manpower planning, estimation of a organization‘s human resource need is reduced to mere guesswork.

NEED & IMPORTANCE OF HRP Forecast future personnel needs: To avoid the situations of surplus or deficiency of

manpower in future, it is important to plan your manpower in advance. For this

purpose a proper forecasting of futures business needs helps you to ascertain our

future manpower needs. From this angle, HRP plays an important role to predict the

right size of manpower in the organization. Cope with change: HRP enables an enterprise to cope with changes in competitive

forces, markets, technology, products and government regulations. Such changes

generate changes in job content, skills demands and number of human resources

required. Creating highly talented personnel: Since jobs are becoming highly intellectual and

incumbents getting vastly professionalized, HRP helps prevent shortages of labor

caused by attritions. Further technology changes would further upgrade or degrade

jobs and create manpower shortages. In these situations only accurate human resource

planning can help to meet the resource requirements. Further HRP is also an answer

to the problems of succession planning. Protection of weaker sections : A well-conceived personnel planning would also

help to protect the interests of the SC/ST, physically handicapped, children of socially

oppressed and backward classes who enjoy a certain percentage of employments

notwithstanding the constitutional provisions of equal opportunity for all.

International strategies: International expansion strategies largely depend upon

effective HRP. With growing trends towards global operations, the need for HRP

further becomes more important as the need to integrate HRP more closely into the

organization keeps growing. This is also because the process of meeting staffing

needs from foreign countries grows in a complex manner. Foundation of personnel

functions: HRP provides essential information for designing and implementing

personnel functions such as recruitment, selection, personnel development,

training and development etc. Increasing investments in HR: Another importance is the investment that an

organization makes in human capital. It is important that employees are used

effectively throughout their careers. Because human assets can increase the

organization value tremendously as opposed to physical assets Resistance to change & move: The growing resistance towards change and move,

self evaluation, loyalty and dedication making it more difficult to assume that

organization can move its employees everywhere. Here HRP becomes very important

and needs the resources to be planned carefully. Other benefits: Following are the other benefits of HRP. 1. Upper management has a better view of HR dimensions of business 2. Management can anticipate imbalances before they become unmanageable and expensive. 3. More time is provided to locate talent 4. Better opportunities exists to include women and minorities in future growth plans 5. Better planning of assignments to develop managers

6. Major and successful demands on local labor markets can be made. HRP SYSTEM HRP System as such includes following elements or sets for planning

Overall Organization Objectives Business Environment Forecasting Manpower Needs Assessing Manpower Supply Matching Manpower Demand-Supply factors

Based on these elements we can draw ―HRP System Architecture‖ as under.

Business Environment

Organization Objectives & Goals

Manpower Forecast

Manpower Supply Assessment

Manpower Programming

Manpower Implementation

Control & Manpower

Evaluation

Surplus Manpower Shortage of Manpower

HRP PROCESS Organizational Objectives & Policies: - The objectives of HR plan must be derived from organizational objectives like

specific requirements of numbers and characteristics of employees etc. HRP needs to

sub-serve the overall objectives by ensuring availability and utilization of human

resources. Specific policies need to be formulated to address the following decisions. Internal Hiring or External Hiring? Training & Development plans Union Constraints Job enrichment issues Rightsizing organization Automation needs Continuous availability of adaptive and flexible workforce Manpower Demand Forecasting: - It is the process of estimating the future quantity and quality of people required. The basis should be annual budget and long term corporate plans Demand forecasting should be based on following factors. Internal Factors: - Budget constraints Production levels New products and services Organizational structure Employee separation External Factors: - Competition environment Economic climate Laws and regulatory bodies Technology changes Social Factors Reasons for Manpower Demand Forecasting: - To quantify jobs To determine the Staff-mix To assess staffing levels and avoid unnecessary costs Prevent shortages of people Monitor compliances of legal requirements with regards to reservations Manpower Forecasting Techniques: - Management Judgment: In this techniques managers across all the levels decide the

forecast on their own judgment. This can be bottom-up or top-down approach and

judgments can be reviewed across departments, divisions and top management can

conclude on final numbers of manpower required. Ration-Trend Analysis: This technique involves studying past ratios, and forecasting

future ratios making some allowance for changes in the organization or its methods.

Work Study Techniques: It is possible when work measurement to calculate the

length of operations and the amount of manpower required. The starting point can be

production budget, followed by standard hours, output per hour; man-hours required etc could be computed. Delphi Techniques: This technique solicits estimates from a group of experts, and

HRP experts normally act as intermediaries, summarizes various responses and report

the findings back to experts. Flow Models: This technique involves the flow of following components. Determine

the time required, Establish categories, Count annual movements, Estimate probable

transitions. Here demand is a function of replacing those who make a transition. Manpower Supply Forecasting: - This process measures the number of people likely to be available from within and

outside the organization after making allowance for absenteeism, internal movements

and promotions, wastages, changes in hours and other conditions of work. Reasons for Manpower Supply Forecasting: Clarify Staff-mixes exist in the future Assess existing staff levels Prevent shortages Monitor expected future compliance of legal requirements of job reservations

Supply Analysis covers: Existing Human Resources: HR Audits facilitate analysis of existing employees

with skills and abilities. The existing employees can be categorized as skills

inventories (non-managers) and managerial inventories (managers) Skill inventory would include the following; Personal data Skills Special Qualifications Salary Job History Company data Capabilities Special preferences Management inventories would include the following Work History Strengths Weaknesses Promotion Potential Career Goals Personal Data Number and Types of Subordinates Total Budget Managed Previous Management Duties Internal Supply: - Internal supply techniques help to assess the following Inflows and outflows (transfers, promotions, separations, resignations, retirements

etc.) Turnover rate (No. Of separations p.a. / Average employees p.a. X 100) Conditions of work (working hours, overtime, etc.) Absenteeism (leaves, absences) Productivity level Job movements (Job rotations or cross functional utilizations) External Supply: - External sources are required for following reasons New blood, New experiences Replenish lost personnel Organizational growth Diversification External sources can be colleges and universities, consultants, competitors and unsolicited applications. HR Plan Implementation: - A series of action programs are initiated as a part of HR plan implementation as

under. Recruitment & Selection: Employees are hired against the job vacancies.

Based on the manpower demand and supply forecasts made, hiring of employees is

initiated based on supply forecasts. For this internal and external sources of

manpower are utilized. A formal selection board is established to interview and select

the best of the candidates for the required vacancies. Finally the selected employees

also need to be placed on proper jobs. Here some companies recruit employees for

specific jobs while others recruit fresh trainees in large number and train them for

future manpower needs. Training and Development: The training and development program is charted out to

cover the number of trainees, existing staff etc. The programs also cover the

identification of resource personnel for conducting development program, frequency

of training and development programs and budget allocation. Retraining and Redeployment; New skills are to be imparted to existing staff when

technology changes or product line discontinued. Employees need to be redeployed to

other departments where they could be gainfully employed. Retention Plan: Retention plans cover actions, which would reduce avoidable

separations of employees. Using compensation plans, performance appraisals,

avoiding conflicts, providing green pastures etc, can do this. Downsizing plans: Where there is surplus workforce trimming of labor force will be

necessary. For these identifying and managing redundancies is very essential.

Managerial Succession Planning; Methods of managerial succession plans may

vary. Most successful programs seem to include top managements involvement and

commitment, high-level review of succession plans, formal performance assessment

and potential assessment and written development plans for individuals. A typical

succession planning involves following activities. Analysis of demand for managers and professionals Audit of existing executives

Projection of future likely supply from internal and external sources Individual career path planning Career counseling Accelerated promotions Performance related training and development Strategic recruitment Control & Evaluation of HRP: - HR Plan must also clarify responsibilities for control and establish reporting

procedures, which will enable achievements to be monitored against the plan. The HR

Plan should include budgets, targets and standards. These plans may simply be reports

on the numbers employed, recruited against targets etc. SUCCESSION PLANNING

Meaning of Succession Planning Succession planning is the process or activities connected with the succession of

persons to fill key positions in the organization hierarchy as vacancies arise. The

focus of attention is towards ‗which‘ person the succession planning is needed. The

focus is not more on career development but it is more towards what kind of person is

required to fill the future vacancy. Succession planning focuses on identification of

vacancies and locating the probable successor. For example in succession planning

the key concern can be who will be next CEO or what will happen if the Marketing

Manager retires in coming March. Importance of Succession Planning Succession planning helps when there is a sudden need arises due to reason or retirement of a key employee. Individual employee comes to know in advance the level to which he can rise if he has the ability and aptitude for it. Individual employee or successor feels happy when he feels that organization is taking care of his talents and aspirations. Succession planning helps create loyalty towards the organization and improved motivation and morale of individual employees. Organization gains stable workforce and low employee turnover. Ultimately organization becomes successful in accomplishing its goals effectively. CAREER PLANNING Career planning is the process or activities offered by the organization to individuals

to identify strengths, weaknesses, specific goals and jobs they would like to occupy.

Career as a concept means a lifelong sequences of professional, educational and

developmental experiences that projects an individual through the world of work. It is

a sequence of positions occupied by a person during his life. Career may also be

defined as amalgamation of changes in values, attitudes and motivation that occurs as

a person grows older. In career planning, organization is concerned with strategic questions of career

development. Further the organization is concerned about if it should employ more

graduates, more engineers, more scientists or more accountants etc. Career planning

provides picture of succession plan for employees as per organizational needs. It

focuses on the basis of performance, experience, could be placed where, when and

how. Career planning is a process of integrating the employees‘ needs and aspirations with organizational requirements. Objectives of Career Planning 1. Build commitment in the individual 2. Develop long-range perspective 3. Reduce personal turnover expenses 4. Lessen employee obsolescence 5. Ensure organizational effectiveness 6. Allow individual to achieve personal and work related goals. Importance of Career Planning Career planning is important because it helps the individual to explore, choose and strive to derive satisfaction with his own career objectives. JOB ANALYSIS JOB: ―Job is a ‗group of tasks to be performed everyday.‖ JOB ANALYSIS Definition 1: (Process of Collecting Information) ―Job Analysis is a process of studying and collecting information relating to

operations and responsibilities of a specific job. The immediate products of this

analysis are ‗Job Description‘ and ‗Job Specifications‘.‖ Definition 2: (Systematic Exploration of Activities) ―Job Analysis is a systematic exploration of activities within a job. It is a basic

technical procedure that is used to define duties and responsibilities and

accountabilities of the job.‖ Definition 3: (Identifying Job Requirements) ―Job is a collection of tasks that can be performed by a single employee to contribute

to the production of some product or service, provided by the organization. Each job

has certain ability requirements (as well as certain rewards) associated with it. Job Analysis is a process used to identify these requirements.‖ MEANING OF JOB ANALYSIS Job Analysis is a process of collecting information about a job. The process of job analysis results into two sets of data. Job Description Job Specification As a result Job analysis involves the following steps in a logical order. Steps of Job Analysis 1. Collecting and recording job information 2. Checking the job information for accuracy 3. Writing job description based on information collected to determine the skills, knowledge, abilities and activities required 4 . Updating and upgrading this information

PURPOSE OF JOB ANALYSIS: - Human Resource Planning (HRP): - The numbers and types of personnel are

determined by the jobs, which need to be staffed. Job related information in the form of Job Analysis serves this purpose or use. Recruitment & Selection: - Recruitment precedes job analysis. It helps HR to

locate places to obtain employees. It also helps in better continuity and planning in

staffing in the organization. Also selecting a good candidate also requires detailed job

information. Because the objective of hiring is to match the right candidate for right

job Training & Development: Training and development programs can be designed

depending upon job requirement and analysis. Selection of trainees is also facilitated by job analysis. Job Evaluation: Job evaluation means determination of relative worth of each

job for the purpose of establishing wage and salary credentials. This is possible with the help of job description and specifications; i.e. Job Analysis. Remuneration: Job analysis also helps in determining wage and salary for all jobs. Performance Appraisal: Performance appraisal, assessments, rewards, promotions, is facilitated by job analysis by way of fixing standards of job performance. Personnel Information: Job analysis is vital for building personnel information systems and processes for improving administrative efficiency and providing decision support. Safety & Health: Job Analysis helps to uncover hazardous conditions and

unhealthy environmental factors so that corrective measures can be taken to minimize and avoid possibility of human injury. PROCESS OF JOB ANALYSIS Process 1: Strategic Choices Process 2: Collecting Information

Process 3: Processing Information

Process 4: Job Description

Process 5: Job Specification Strategic Choices: - Extent of involvement of employees: Extent of employee involvement is a debatable

point. Too much involvement may result in bias in favor of a job in terms of inflating

duties and responsibilities. Too less involvement leads to suspicion about the motives

behind the job. Besides it may also lead to inaccurate information. Hence extent of

involvement depends on the needs of the organization and employee. Level of details of job analysis: The nature of jobs being analyzed determines the

level of details in job analysis. If the purpose were for training programs or assessing

the worth of job, levels of details required would be great. If the purpose is just

clarification the details required would be less. Timing and frequency of Job Analysis: When do you do Job Analysis? Initial stage, for new organization

New Job is created Changes in Job, Technology and Processes Deficiencies and Disparities in Job New compensation plan is introduced Updating and upgrading is required.

Past -oriented and future -oriented Job Analysis: For rapidly changing organization

more future oriented approach would be desired. For traditional organizations past

oriented analysis would be required. However more future oriented analysis may be

derived based on past data. Sources of Job Data: For job analysis number of human and non-human sources is

available besides jobholder himself. Following can be sources of data available for

job analysis.

Non - Human Sources Human Sources

Existing job descriptions and specifications Job Analysis

Equipment maintenance records Job Incumbents

Equipment design blueprints Supervisors

Architectural blueprints of work area Job Experts

Films of employee working

Training manuals and materials

Magazines, newspapers, literatures Collecting Information: - Information collection is done on the basis of following 3 parameters Types of Data for Job Analysis: Work Activities (Tasks details) Interface with other jobs and equipments (Procedures, Behaviors, Movements) Machines, Tools, Equipments and Work Aids (List, Materials, Products, Services) Job Context (Physical, Social, Organizational, Work schedule) Personal Requirement (Skills, Education, Training, Experience) Methods of Data Collection: Observation Interview Questionnaires Checklists Technical Conference Diary Methods Who to Collect Data? Trained Job Analysts Supervisors Job Incumbents Processing Information: -

Once the job information is collected it needs to be processed, so that it would be

useful in various personnel functions. Specifically job related data would be useful to

prepare job description and specifications, which form the next two processes of job

analysis.

METHODS OF DATA COLLECTION: Observation: Job Analyst carefully observes the jobholder and records the

information in terms of what, how the job is done and how much time is taken. It is a

simple and accurate method, but is also time consuming and inapplicable to jobs

involving mental activities and unobservable job cycles. The analysts must be fully

trained observers. Interview: In this analyst interviews the jobholders, his supervisors to elicit

information. It can be Structured or Unstructured Interview. Again this is also a time

consuming method in case of large organizations. Plus there is also a problem of bias.

Questionnaires: A standard questionnaire is given to jobholder about his job, which

can be filled and given back to supervisors or job analysts. The questionnaire may

contain job title, jobholder‘s name, managers name, reporting staff, description of job,

list of main duties and responsibilities etc. It is useful in large number of staffs and

less time consuming. However the accuracy of information leaves much to be desired.

Checklists: It is more similar to questionnaire but the response sheet contains fewer

subjective judgments and tends to be either yes or no variety. Preparation of checklist

is a challenging job itself. Technical Conference: Here a conference of supervisors is used. The analysts initiate

the discussions providing job details. However this method lacks accuracy. Diary

Methods: In this method jobholder is required to note down their activities day by day

in their diary. If done faithfully this technique is accurate and eliminates errors caused

by memory lapses etc. Quantitative Methods of Job Data Collection: - Position Analysis Questionnaire (PAQ): - PAQ is a highly specialized instrument for analyzing any job in terms of employee

activities. The PAQ contains 194 job elements on which job is created depending on

the degree to which an element is present. These elements are grouped together into 6

categories. 1. U – Usability / Use of Job 2. I – Importance of Job 3. T – Time 4. P – Possibility of Occurrence of Job 5. A – Applicability of Job 6. S – Specialty Tasks of Job The primary advantage of PAQ is that it can be used to analyze almost every job. This

analysis provides a comparison of a specific job with other job classifications,

particularly for selection and remuneration purposes. However PAQ needs to be

completed by trained job analysts only rather than incumbents. Management Positi on Description Questionnaire (MPDQ): - Highly structured questionnaire, containing 208 elements relating to managerial

responsibilities, demand, restrictions and other position characteristics These 208

elements are grouped under 13 categories. PAQ and MPDQ yield standardized

information about the worker and the job.

Functional Job Analysis: - It is a worker oriented job anal ytical approach, which attempts to describe the whole person on the job. BARRIERS OF JOB ANALYSIS Support from Top Management Single means and source, reliance on single method rather than combination No Training or Motivation to Jobholders Activities and Data may be Distorted JOB DESCRIPTION ―Job Description implies objective listing of the job title, tasks, and responsibilities involved in a job.‖ Job description is a word picture in writing of the duties, responsibilities and

organizational relationships that constitutes a given job or position. It defines

continuing work assignment and a scope of responsibility that are sufficiently

different from those of the other jobs to warrant a specific title. Job description is a

broad statement of purpose, scope, duties and responsibilities of a particular job. Contents of Job Description 1. Job Identification 2. Job Summary 3. Job Duties and Responsibilities 4. Supervision specification 5. Machines, tools and materials 6. Work conditions 7. Work hazards 8. Definition of unusual terms Format of Job Description Job Title Region/Location Department Reporting to (Operational and Managerial) Objective Principal duties and responsibilities Features of Good Job Description 1. Up to date 2. Proper Job Title 3. Comprehensive Job Summary 4. Clear duties and responsibilities 5. Easily understandable 6. State job requirements 7. Specify reporting relationships 8. Showcase degrees of difficulties 9. Indicates opportunities for career development 10. Offer bird‘s-eye-view of primary responsibilities

JOB SATISFACTION Job satisfaction is the result of various attitudes possessed by an employee towards his

job, related factors and life in general. The attitudes related to job may be wages,

supervision, steadiness, working conditions, advancement opportunities, recognitions,

fair evaluation of work, social relations on job, prompt settlement of grievances etc. In short job satisfaction is a general attitude, which is the result of many specific

attitudes in three areas namely, job factors, individual characteristics and group

relationships outside the job. Components of Job Satisfaction Personal factors: Sex, Dependents, Age, Timings, Intelligence, Education and Personality. Job inherent factors: Type of work, Skills, Occupational status, Geography, Size of plant Management controlled factors: Security, Payment, Fringe benefits, Advancement opportunities and Working conditions, Co-workers, Responsibilities, Supervision Job Satisfaction & Behavior relationship is described through following examples. Satisfaction & Turnover

Satisfaction & Absenteeism

Satisfaction & Accidents

Satisfaction & Job Performance

JOB SPECIFICATIONS ―Job Specification involves listing of employee qualifications, skills and abilities

required to meet the job description. These specifications are needed to do job

satisfactorily.‖ In other words it is a statement of minimum and acceptable human qualities necessary

to perform job properly. Job specifications seeks to indicate what kind of persons may

be expected to most closely approximate the role requirements and thus it is basically

concerned with matters of selection, screening and placement and is intended to serve

as a guide in hiring. Contents of Job Specifications 1. Physical Characteristics 2. Psychological characteristics 3. Personal characteristics 4. Responsibilities 5. Demographic features Further the job specifications can be divided into three broad categories Essential Attributes Desirable Attributes Contra-Indicators – indicators hampering the success of job

JOB DESIGN The Logical Sequence to Job Analysis is Job Design. Definition 1: Integration of work, rewards and qualification ―Job Design integrates work content (tasks, functions, relationships), the rewards

and qualifications required including skills, knowledge and abilities for each job in a

way that meets the needs of employees and the organization.‖ Steps in Job Design: - 1. Specification of Individual Tasks 2. Specification of Methods of Tasks Performance 3. Combination of Tasks into Specific Jobs to be assigned to individuals Factors affecting Job Design: - Organizational factors: Characteristics of Tasks (Planning, Execution and Controlling of Task) Work Flow (Process Sequences) Ergonomics (Time & Motion Study) Work Practices (Set of ways of performing tasks) Environmental Factors: Employee Abilities and Availability Social and Cultural Expectations Behavioral Elements: Feedback Autonomy Use of Abilities Variety

TECHNIQUES OF JOB DESIGN: - Work Simplification: Job is simplified or specialized. Job simplification is a design

method whereby jobs are divided into smaller components and subsequently assigned

to workers as whole jobs. Simplification of work requires that jobs be broken down

into their smallest units and then analyzed. Each resulting sub-unit typically consists

of relatively few operation . this subunits are then assigned to the workers as their

total job. To be more specific, work simplification is mechanical pacing of work,

repetitive work processes, working only on one part of a product, predetermining

tools and techniques, restricting interaction amongst employees, few skills

requirement.There appears to be two major advantage in using job simplification.

First since the job requires very little training, they can be completed by less costly

unskilled labour. Second, job speed increases because each worker is performing only

a small portion of the previously large job and thus is able to master a smaller, less

complicated job unit. On the negative side, job simplification results in workers

experiencing boredom, frustration, alienation, lack of motivation and low job

satisfaction. This in turn, leads to lower productivity and increased cost.Work

simplification is used when jobs are not specialized.

Job Rotation: Job rotation refers to the movement of an employee from one job to

another, jobs themselves are not actually changed, only the employee are rotated

among various jobs .An employee who works on a routine job moves to work on

another job for some hour/day/months and returns back to the first job. This measure

relieves the employee from the boredom and monotony, improves the employee‘s

skills regarding various jobs and prepares worker‘s self-image and provides personal

growth. However, frequent job rotation are not advisable in view of their negative

impact on the organization and the employee. On the positive side, it increases the intrinsic reward potential of a job because of

different skills and abilities needed to perform it. Workers become more competent in

several jobs, know variety of jobs and improve the self-image, personal growth.

Further the worker becomes more valuable to the organization. Periodic job changes

can improve interdepartmental cooperation. On the negative side, it may not be much

enthusiastic or efficiency may not be more. Besides jobs may not improve the

relationships between task, while activities and objectives remain unchanged. Further

training costs also rise and it can also de-motivate intelligent and ambitious trainees

who seek specific responsibilities in their chosen specialties. Job Rotation is a management approach where employees are shifted between two or

more assignments or jobs at regular intervals of time in order to expose them to all

verticals of an organization. It is a pre-planned approach with an objective to test the

employee skills and competencies in order to place him or her at the right place. In

addition to it, it reduces the monotony of the job and gives them a wider experience

and helps them gain more insights.

Job rotation is a well-planned practice to reduce the boredom of doing same type of

job everyday and explore the hidden potential of an employee. The process serves the

purpose of both the management and the employees. It helps management in

discovering the talent of employees and determining what he or she is best at. On the

other hand, it gives an individual a chance to explore his or her own interests and gain

experience in different fields or operations.

Job Rotation Objectives

Reducing Monotony of the Job: The first and foremost objective of job

rotation is to reduce the monotony and repetitiveness involved in a job. It allows employees to experience different type of jobs and motivates them to perform well at each stage of job replacement.

Succession Planning: The concept of succession planning is ‗Who will replace whom‘. Its main function of job rotation is to develop a pool of employees who can be placed at a senior level when someone gets retired or leaves the organization. The idea is to create an immediate replacement of a high-worth employee from within the organization.

Creating Right-Employee Job Fit: The success of an organization depends on the on-job productivity of its employees. If they‘re rightly placed, they will be able to give the maximum output. In case, they are not assigned the job that they are good at, it creates a real big problem for both employee as well as organization. Therefore, fitting a right person in right vacancy is one of the main objectives of job rotation.

Exposing Workers to All Verticals of the Company: Another main function of job rotation process is to exposing workers to all verticals or operations of the organization in order to make them aware how company operates and how tasks are performed. It gives them a chance to understand the working of the organization and different issues that crop up while working.

Testing Employee Skills and Competencies: Testing and analyzing employee skills and competencies and then assigning them the work that they excel at is one of the major functions of job rotation process. It is done by moving them to different jobs and assignments and determining their proficiency and aptitude. Placing them what they are best at increases their on-job productivity.

Developing a Wider Range of Work Experience: Employees, usually don‘t

want to change their area of operations. Once they start performing a specific

task, they don‘t want to shift from their comfort zone. Through job rotation,

managers prepare them in advance to have a wider range of work experience

and develop different skills and competencies. It is necessary for an overall

development of an individual. Along with this, they understand the problems

of various departments and try to adjust or adapt accordingly.

Job rotation is a well planned management approach that is beneficial both for employees and management.

Job Enlargement : Job enlargement is a job design technique wherein there is an increase in the number

of tasks associated with a certain job. In other words, it means increasing the scope of

one‘s duties and responsibilities. The increase in scope is quantitative in nature and

not qualitative and at the same level.

Job enlargement is a horizontal restructuring method that aims at increase in the

workforce flexibility and at the same time reducing monotony that may creep up over

a period of time. It is also known as horizontal loading in that the responsibilities

increase at the same level and not vertically.

Many believe that since the enlargement is horizontal in nature there is not a great

need for training! Contrary to this, job enlargement requires appropriate training

especially on time and people management. Task related training is not required much

since the person is already aware of the same or doing it for some time Benefits of Job Enlargement The following are the major benefits of Job enlargement

1. Reduced Monotony: Howsoever interesting the job may appear in the

beginning, sooner or later people complain of boredom and monotony. Job

enlargement if planned carefully can help reduce boredom and make it more

satisfying and fulfilling for the employees.

2. Increased Work Flexibility: There is an addition to the number of tasks an

individual performs. There is thus an increased scope of carrying out tasks that

are versatile and yet very similar in certain aspects.

3. No Skills Training Required: Since the individual has already been

performing the task in the past, there is no great requirement for imparting of

new skills. However people and time management interventions may be

required. The job thus gets more motivational for the one performing it.

Disadvantages of Job Enlargement 1. High Training Costs 2. Redesigning existing work system required 3. Productivity may not increase necessarily 4. Workload increases 5. Unions demand pay–hike 6. Jobs may still remain boring and routine Job Enrichment: Job enrichment is improvisation of both tasks efficiency and

human satisfaction by building into people‘s jobs, quite specifically, greater scope for

personal achievement and recognition, more challenging and responsible work and

more opportunity for individual advancement and growth. An enriched job will have

more responsibility, more autonomy (vertical enrichment), more variety of tasks

(horizontal enrichment) and more growth opportunities. The employee does more

planning and controlling with less supervision but more self-evaluation. In other

words, transferring some of the supervisor‘s tasks to the employee and making his job

enriched. Benefits of Job enrichment 1. It benefits employee and organization in terms of increased motivation, performance, satisfaction, job involvement and reduced absenteeism. 2. Additional features in job meet certain psychological needs of jobholders due to

skill variety, identity, significance of job etc. 3. It also adds to employee self-esteem and self-control. 4. Job enrichment gives status to jobholder and acts as a strong satisfier in one‘s life. 5. Job enrichment stimulates improvements in other areas of organization. 6. Empowerment is a by-product of job enrichment. It means passing on more authority and responsibility. Demerits of Job Enrichment 1. Lazy employees may not be able to take additional responsibilities and power. It won‘t fetch the desired results for an employee who is not attentive towards his job. 2. Unions resistance, increased cost of design and implementation and limited research on long term effect of job enrichment are some of the other demerits. 3. Job enrichment itself might not be a great motivator since it is job-intrinsic factor.

As per the two-factor motivation theory, job enrichment is not enough. It should be

preceded by hygienic factors etc. 4. Job enrichment assumes that workers want more responsibilities and those workers who are motivated by less responsibility, job enrichment surely de-motivates them 5. Workers participation may affect the enrichment process itself. 6. Change is difficult to implement and is always resisted as job enrichment brings in a changes the responsibility. Autonomous of Self -Directed Teams: Empowerment results in self-directed work

teams. A self –directed team is an intact group of employees responsible for whole

work segment, they work together, handle day-to-day problems, plan and control, and

are highly effective teams. High Performance Work Design: Improving performance in an environment where

positive and demanding goals are set leads to high performance work design. It starts

from the principle of autonomous groups working and developing an approach, which

enables group to work effectively together in situations where the rate of innovation is

very high. Operational flexibility is important and there is the need for employees to

gain and apply new skills quickly with minimum supervision. However due to

bureaucracy high performance work design does not work. Job Enrichment and Job Enlargement

1. The difference between job enrichment and job enlargement is essentially of

quantity and quality. Whereas job enlargement means increasing the scope of

job quantitatively by adding up more tasks, job enrichment means

improvement in the quality of job such that employees are more satisfied and

fulfilled.

2. Through job enrichment an employee finds satisfaction and contentment in his

job and through job enlargement employee feels more responsible and

worthwhile in the organization.

3. Job enrichment entails the functions of planning and organizing and

enlargement involves execution of the same. Both complement each other, in

that job enrichment empowers and enlargement executes.

4. Job enrichment depends upon job enlargement for success and the reverse in not

true.

5. Job enrichment means a vertical expansion in duties and responsibilities and span of

control whereas in job enlargement the expansion is horizontal in nature.

Job enrichment has been found to have greater impact in terms of motivation when

compared to job enlargement. Since enrichment gives employee greater insights in

managerial functioning and a better work profile, it is looked upon as an indicator of

growth and development. The same is not true in case of job enlargement which is seen

as an employer tactic to increase the workload.

DESIGNING JOBS – MOTIVATING JOBS The concept of motivating jobs relates to Job design. Job design affects employee

productivity, motivation and satisfaction. Job design is a conscious effort to organize tasks,

duties and responsibilities into a unit of work to achieve certain objectives. How a job design creates a motivating job can be seen with the help of certain components

of job design, namely, job rotation, job enlargement, job enrichment, work simplification

etc. Work simplification simplifies the job by breaking down the job into small parts. Simplified

jobs are easy to perform hence employees find it easy to do. Training requirements are

reduced and it benefits the organizations in terms of cost. Job rotation means movement of employees of job to job across the organization. It

improves the intrinsic reward potential of a job because of different skills and abilities are

needed to perform a job. Workers become more competent in several jobs rather than only

one. It also improves workers self image, provides personal growth and makes workers

more valuable to the organization. Periodic job change can improve inter-departmental

cooperation. Employees become more understanding to each other‘s problems.

Consequently it provides a high level of motivation to employees because jobs itself

become motivators. Hence job rotation helps the job become more motivating. Job enlargement involves expanding number of tasks or duties assigned to a given job. Job enrichment involves improving task efficiency and human satisfaction. Job enrichment

provides greater scope for personal achievement and recognition, more challenging and

responsible work and more opportunity for individual advancement and growth. An

enriched job gives vertical enrichment in the form of more responsibility and autonomy and

a horizontal enrichment in the form of variety of tasks and more growth opportunities. The

employee does more planning and controlling with less supervision but more self-

evaluation. All these factors lead to increased level of motivation and hence make the jobs

more motivated. Considering above examples, we can say that designing jobs is actually using the relevant

and right techniques of job design, like rotation, enrichment, simplifications and make the

jobs more motivating to perform. So we can say that Designing Jobs is actually creating Motivated Jobs.

UNIT III

RECRUITMENT & SELECTION RECRUITMENT Definition Of Recruitment: Finding and Attracting Applications “Recruitment is the Process of finding and attracting capable applicants for employment. The Process begins when new recruits are sought and ends when their applications are submitted. The result is a pool of application from which new employees are selected.” MEANING OF RECRUITMENT: Recruitment is understood as the process of searching for and obtaining applicants for jobs,

from among them the right people can be selected. Though theoretically recruitment process

is said to end with the receipt of applications, in practice the activity extends to the

screening of applications so as to eliminate those who are not qualified for the job. PURPOSE AND IMPORTANCE OF RECRUITMENT: - Determine the present and future requirements in conjunction with personnel planning and job analysis activities Increase the pool of job candidates at minimum cost Help increase success rate of selection process by reducing number of under-qualified or over-qualified applications. Reduce the probability that job applicants once selected would leave shortly Meet legal and social obligations Identify and prepare potential job applicants Evaluate effectiveness of various recruitment techniques and sources for job applicants. FACTORS GOVERNING RECRUITMENT External Factors: Demand and Supply (Specific Skills)

Unemployment Rate (Area-wise)

Labor Market Conditions Political and Legal Environment (Reservations, Labor laws) Image Internal Factors Recruitment Policy (Internal Hiring or External Hiring?)

Human Resource Planning (Planning of resources required) Size of the Organization (Bigger the size lesser the recruitment problems) Cost Growth and Expansion Plans RECRUITMENT PROCESS Recruitment Planning

Number of contacts

Types of contacts Recruitment Strategy Development

Make or Buy Employees

Technological Sophistication

Where to look

How to look Internal Recruitment (Source 1) Present employees

Employee referrals

Transfers & Promotions

Former Employees

Previous Applicants Evaluation of Internal Recruitment

External Recruitment (Source 2) Professionals or Trade Associations Advertisements Employment Exchanges Campus Recruitment Walk-ins Interviews Consultants Contractors Displaced Persons Radio & Television Acquisitions & Mergers Competitors Evaluation of External Recruitment Searching Source activation Selling Screening of Applications Evaluation and Cost Control Salary Cost Management & Professional Time spent Advertisement Cost Producing Supporting literature Recruitment Overheads and Expenses Cost of Overtime and Outsourcing Consultant‟s fees Evaluation of Recruitment Process Return rate of applications sent out Suitable Candidates for selection Retention and Performance of selected candidates Recruitment Cost Time lapsed data Image projection INTERNAL RECRUITMENT

Advantages Disadvantages

Less Costly Old concept of doing things

Candidates already oriented towards It abets raiding

organization Candidates current work may be

Organizations have better knowledge about affected

internal candidates Politics play greater roles

Employee morale and motivation is enhanced Morale problem for those not promoted.

EXTERNAL RECRUITMENT

Advantages Disadvantages

Benefits of new skills and talents Better morale and motivation associated

Benefits of new experiences with internal recruiting is denied

Compliance with reservation policy becomes It is costly method

easy Chances of creeping in false positive

Scope for resentment, jealousies, and and false negative errors

heartburn are avoided. Adjustment of new employees takes

longer time.

SELECTION: - MEANING OF SELECTION:

Selection is the process of picking up individuals (out of the pool of job applicants) with

requisite qualifications and competence to fill jobs in the organization. A formal definition

of Selection is as under Definition of Selection: Process of differentiating

“Selection is the process of differentiating between applicants in order to identify and hire those with a greater likelihood of success in a job.” DIFFERENCE BETWEEN RECRUITMENT AND SELECTION:

Recruitment Selection

Recruitment refers to the process of Selection is concerned with picking up the

identifying and encouraging prospective right candidates from a pool of applicants.

employees to apply for jobs. Selection on the other hand is negative in

Recruitment is said to be positive in its its application in as much as it seeks to

approach as it seeks to attract as many eliminate as many unqualified applicants as

candidates as possible. possible in order to identify the right

candidates. PROCESS / STEPS IN SELECTION

Preliminary Interview: The purpose of preliminary interviews is basically to eliminate

unqualified applications based on information supplied in application forms. The basic

objective is to reject misfits. On the other hands preliminary interviews is often called a

courtesy interview and is a good public relations exercise. Selection Tests: Jobseekers who past the preliminary interviews are called for tests. There

are various types of tests conducted depending upon the jobs and the company. These tests

can be Aptitude Tests, Personality Tests, and Ability Tests and are conducted to judge how

well an individual can perform tasks related to the job. Besides this there are some other

tests also like Interest Tests (activity preferences), Graphology Test (Handwriting), Medical

Tests, Psychometric Tests etc. Employment Interview: The next step in selection is employment interview. Here

interview is a formal and in-depth conversation between applicant‟s acceptability. It is

considered to be an excellent selection device. Interviews can be One-to-One, Panel

Interview, or Sequential Interviews. Besides there can be Structured and Unstructured

interviews, Behavioral Interviews, Stress Interviews. Reference & Background Checks: Reference checks and background checks are

conducted to verify the information provided by the candidates. Reference checks can be

through formal letters, telephone conversations. However it is merely a formality and

selections decisions are seldom affected by it. Selection Decision: After obtaining all the information, the most critical step is the

selection decision is to be made. The final decision has to be made out of applicants who

have passed preliminary interviews, tests, final interviews and reference checks. The views

of line managers are considered generally because it is the line manager who is responsible

for the performance of the new employee. Physical Examination: After the selection decision is made, the candidate is required to undergo a physical fitness test. A job offer is often contingent upon the candidate passing

the physical examination. Job Offer: The next step in selection process is job offer to those applicants who have crossed all the previous hurdles. It is made by way of letter of appointment. Contract of Employment: After the job offer is made and candidates accept the offer, certain

documents need to be executed by the employer and the candidate. Here is a need to prepare

a formal contract of employment, containing written contractual terms of employment etc. ESSENTIALS OF A GOOD SELECTION PRACTICE Detailed job descriptions and job specifications prepared in advance and endorsed by personnel and line management Trained the selectors Determine aids to be used for selection process Check competence of recruitment consultants before retention Involve line managers at all stages Attempt to validate the procedure Help the appointed candidate to succeed by training and management development BARRIERS TO EFFECTIVE SELECTION: - Perception: We all perceive the world differently. Our limited perceptual ability is obviously a stumbling block to the objective and rational selection of people. Fairness: Barriers of fairness includes discrimination against religion, region, race or gender etc. Validity: A test that has been validated can differentiate between the employees who can

perform well and those who will not. However it does not predict the job success

accurately. Reliability: A reliable test may fail to predict job performance with precision. Pressure: Pressure brought on selectors by politicians, bureaucrats, relatives, friends and peers to select particular candidate are also barriers to selection. INDUCTION & ORIENATION Definition 1: Planned Introduction “It is a Planned Introduction of employees to their jobs, their co-workers and the organization per se.” Orientation conveys 4 types of information: Daily Work Routine Organization Profile Importance of Jobs to the organization Detailed Orientation Presentations Purpose of Orientation To make new employees feel at home in new environment

To remove their anxiety about new workplace To remove their inadequacies about new peers

To remove worries about their job

performance To provide them job information,

environment Types of Orientation Programs Formal or Informal

Individual or Group

Serial or Disjunctive Prerequisites of Effective Orientation Program

Prepare for receiving new employee Determine information new employee wants to know Determine how to present information Completion of Paperwork Problems of Orientations Busy or Untrained supervisor

Too much information

Overloaded with paperwork Given menial tasks and discourage interests

Demanding tasks where failure chances are

high Employee thrown into action soon Wrong perceptions of employees What is the difference between induction and orientation? Induction referred to formal training programs that an employee had to complete before they could start work Orientation was the informal information giving that made the recruit aware of the comfort issues - where the facilities are, what time lunch is and so forth. How long should the induction process take? It starts when the job ad is written, continues through the selection process and is not

complete until the new team member is comfortable as a full contributor to the

organization's goals. The first hour on day one is a critical component - signing on, issuing keys and passwords,

explaining no go zones, emergency procedures, meeting the people that you will interact

with all have to be done immediately. Until they are done the newcomer is on the payroll,

but is not employed. After that it is a matter of just in time training - expanding the content as new duties are undertaken. We only employ new people one at a time - how can we induct them? There are some issues, which cannot wait - they vary according to your situation. Perhaps a

buddy system on the job may be the best way to deal with these. Other subjects may be

incorporated with refresher training for current staff, or handled as participant in an outside

program. Perhaps some can wait until there are groups of people who have started in the last

few months. This may take some creative thinking, but the answer is quite simple - until the new people

are integrated then they are less useful. The math is often amazingly simple - not taking the

time to train consumes more time than the training would. What levels of staff need induction? Everybody. The CEO needs to know different things to the temporary concierge, but everyone needs a planned program of induction and orientation. PLACEMENT Placement is allocation of people to jobs. It is assignment or reassignment of an employee to a new or different job. MULTI SKILLING Multi Skilling is The Integrated Skills Program that has been developed to build on the existing skills of the current work force to reduce redundancies and avoid downsizing

situations. The objective of this program is to gain total integration of skills. The program is based around „on-the-job‟ & „off-the-job‟ competence. That is the ability

to do the job on the shop floor (training to gain work experience) and „off-the-job‟ (training

in the classroom) to gain underpinning knowledge. The program requires the individual to demonstrate competence in a number of different skills and this competence is measured and assessed on the job. Multi-skilling of course works best with more advanced skilled workers because their

individual skills levels are developed enough where they can fluidly transition from one

skill to the next without degradation of a skills performance. If you are multi-skilling and a

great percentage of your workers are having problems executing one of the skills effectively

it is probably a good signal you need to go back to basics with that skill and pull it out of

the multi-skilling sequences. Another advantage of multi-skilling is the positive effect of

what is called "contextual learning". Contextual learning involves discovery and

improvement from two skills, which don't, on the surface, appear to have a direct

relationship. The disadvantages of multi-skilling include the obvious danger of moving on to quickly

toward advanced skills and combinations without sufficiently drilling basic skills. While

there is a great desire to learn quickly I think this is one of the reason we are seeing better

skilled from some of the best workers. The consequence is that we become "partially

skilled". The greater the number of partial skills we develop, the less chance we ever have

of reaching our full potential.

PROMOTION Promotion means advancement within an organisation. It is an upward movement of an employee from current job to another that is higher in pay, responsibility, status and organisational level. The new job will be promotion only if entails increased reposibilities and enhanced pay. The basic elements of promotion Transfer of an employee to some higher job having more prestige, better Status, more benefits and privileges. Reassignment of an employee to a position having increased responsibilities. Higher job grade. DEFINITION OF PROMOTION “ A promotion is the transfer of an employee to a job that pays more money or that enjoys

some preferred status ” According to Scott and Spreigal

“ A promotion involves a change from one job to another that is better in term of status and responsibility “

According to Edwin B. Flippo Purposes of promotion. To put the employee in a position where he will be of greater value to the company. To develop competitive spirit and zeal in the employees to acquire the skill and knowledge etc. required by higher level jobs. To promote employee self-development and make them await their turn of promotions. It reduce labour turnover. To develop internal source of employees ready to take jobs at higher levels in the organisation. Employees have little motivation if better job are reserved for outsiders. To promote employee’s interest in training and development programmes and in term

development areas. To built loyalty among employees and to boost their morale. To create among employees a feeling of contentment with their present working conditions and encourage them to succeed in the company. Promotion policy A sound promotion policy reduces the personnel problems regarding promotions considerably and ensures the employees fair chances of advancement. Principles of promotion The promotion policy should be in writing. The promotion policy should lay down what percentage of vacancies in higher levels of hierarchy are to be filled up by promotion. The promotion policy should mention the basis of promotion-seniority or merit. Bases of promotion Organisations adopt different bases of promotion depending upon their nature, size, management etc. The well established bases of promotion are : Seniority bases c. Merit bases d. Seniority-cum-merit basis

c) Seniority as a basis of promotion Seniority means length of recognised services in an organisation. If seniority as a bases of promotion, the senior most person in a lower grade shell be promoted as and when there is an opening in a higher position. The logic behind considering the seniority as a bases of promotion is that there is a positive

correlation between the length of service in the same job and the amount of knowledge and

the level of skill acquired by an employee in an organisation. Advantages of seniority It is relatively easy to measure the length of service and to judge the seniority. Trade unions generally emphasis on seniority rather then merit as a basis of promotion. The employees trust this method as there is no scope for favouritism, discrimination and judgement. Security and certainty is also a plus point in the use of seniority.

Seniority basis of promotion helps in reducing labour turnover. Disadvantages of seniority It is not necessary that employees learn more with length of service. It demotivates the young and more competent employees results in greater labour turnover.

It kill the zeal and interest for self development as everybody will be promoted without

showing any all round growth or promise. Merit as a basis of promotion

Merit means ability to work. It denote an individual employee’s skill, knowledge, ability, efficiency and aptitude as

measured from educational, training and past employment record. Management personnel generally prefer merit as the basis of promotion. Merit may be

determined by job performance and by analysis of employee potential for development

through written or oral examinations or personal interviews or other record of performance. Advantages of merit The skill of an employee can be better utilised at a higher level. Competent employees are motivated to exert all their energies and contribute to organisational efficiency and effectiveness. This system continuously encourages the employees to acquire new skill, knowledge etc. for all round development. Disadvantages of merit Measuring merit is not always easy. Many employees, particularly, trade unions distrust the management’s integrity in judging

merit. The purpose of promotion may not be served if merit is taken as the sole criteria for promotion. The techniques of merit measurement are subjective. Seniority-cum-merit basis Management mostly prefer merit as a basis of promotion as they are interested in enriching organisational effectiveness by enriching its human resources. Trade unions favour seniority as the sole basis of promotion with a view to satisfy the interests of majority of their members. The combination of both seniority and merit may be considered as a sound basis for

promotion.

TRANSFER According to Dale Yoder,A transfer involves the shifting of an employee from one job to

another without special reference to changing responsibility or compensation.Transfer may

involve promotion,demotion or no change in status and responsibility. PURPOSE OF TRANSFER 1.To meet the organisational requirements: Organisational changes may demand the shift in job assignments with a view to place the right men on the right job. 2.To meet employees requests: Sometimes,transfer is done at the request of the employer himself.Employee may need

transfer in order to satisfy their desire to work under a different superior in a

department/region where opportunities for advancement are bright. 3.To ensure better utilisation of the employees: An employee may be transferred because the management feels that he is not performing satisfactorily and adequately. 4.To make the employees more versatile: Employees may be shifted from one job to the other to expand their capabilities. 5.To adjust the workforce: Workforce may be transferred from a plant where there is less work to a plant where there is more work. 6.To provide relief to the employees: Transfer may be made to give relief to employees who are overburdened or doing harzardous jobs for long periods. Beak monolpy. Unsatisfactory for an employees heath can be transfer. 7.To reduce conflicts and in compatibilities: When employees find it to difficult to get along with colleagues in a particular section or department,they could be shifted to another place to reduce conflicts. 8.To penalise the employees: Transfer may be effected as disciplinary measures to shift employees indulging in undesirable activities to remote,far flung areas. Against the rules and regulation of the company. 9.To maintain a tenure system: Employees has a fixed tenure system.They shifted from one place to the another so that they will increase experience and skills which is beneficial for the organisation. 10.To accommodate family related issues: Family related issues cause transfers, specially among female employees.They want to join husband. Types Of Transfer ON THE BASIS OF PURPOSE (a) Production Transfers.(b) Replacement Transfers.(c) Versatility Transfers.(d) Shift Transfers. (e) Remedial Transfers.(g) Precautionary Transfers ON THE BASIS OF UNIT (a) Sectional Transfers (b) Deparmental Transfers. (c) Inter-Plant Transfers.

1.Production transfers: A shortage or surplus of the workforce is common in different departments in a plant or

several plants in an organisation. Surplus employees in a department have to be laid off,

unless they are transferred to another department. Transfers effected to avoid such

inevitable lay offs are called production transfers. 2.Replacement transfers: A replacement transfer is a transfer of a senior employee to replace the junior employee or new employee, when the latter is laid off or shifted to another job. 3.Versatility transfers: Versatility transfers are effected to make employee versatile and competent in more than one skill. 4.Shift transfers: When the unit runs in shifts, employees are transferred from one shift to another on similar jobs. 5.Remedial transfers: Remedial transfers are effected at the request of the employees and are,therefore,called

personal transfer. They want to get along with his superiors or with other workers in the

department. 6.Precautionary transfers: Such transfers are made as a precautionary measure to avoid the misuse of office or misappropriation of funds by the employees. 7.Sectional transfers: Transfers which are made within the department from one section to the another. 8.Departmental transfers: Transfers from one department to another department within the plants called departmental transfer. 9.Inter-plant transfers: If there are more than one plants under the control of same management,transfer may be made from one plant to another on varied reasons. TRANSFER POLICY The management must frame a policy on transfers and apply it to all the transfers instead of

treating each case on its merit. Such a policy must be based on the following principles.

Transfer policy must be in writing and be made known to all the employees of the

organization. Transfers should be clearly defined as temporary or permanent. The policy should specify the region or unit of the organization within which transfers will be administrated. SEPARATIONS In the words of keith Davis,Separation is a decision that the individual and the organisation should part.Separations can be taken the following forms: FORMS/TYPES OF SEPARATION 1.Resignation: A resignation refers to the termination of employment at the instance of the employees. It may be of two types : a. Voluntary resignation

b.Compulsary resignation 2.Dismissal or discharge: Dismissal is the termination of the services of an employee as a punitive measure of some misconduct. 3.Death: Some employees may be die in service, when the death is caused by occupational hazards, the employee’s family get the compensation as per the provision. 4.Suspension: Suspension means prohibiting an employee from attending work and perform normal duties

assigned to him. This is a serious punishment which may leads the termination, if the

charges against the suspended is proved. 5.Retrenchment: Retrenchment,too,results in the separation of an employee from his employers .The

principle in the procedure of retrenchment is that the last person employed in each category

must be the first person to be retrenched. 6.Lay off: It is the temporary separation of the employee from his employers.

DEMOTION Demotion refers to the lowering down of the status, salary and responsibility of an employee. Demotion is just opposite to promotion.

“Demotion is a shift to a position in which responsibilities are decreased. Promotion is, in a

sense, an increase in rank and demotion is decrease in rank” According to Dale Yoder

Causes of demotion Inadequacy on the part of the employees in term of job performance attitude and capability. Demotion may be used as disciplinary tools against errant employees. If there is mistake in staffing i.e. a person is promoted wrongly. When, because of a change in technology, method and practices, old hands are unable to

adjust or when employees because of ill health or personal reasons, cannot do their job

properly.

UNIT IV

Training :

‘Training is the formal and systematic modification of behaviour through learning which

occurs as a result of education, instruction, development and planned experience.”

Development is any learning activity, which is directed towards future, needs rather than

present needs, and which is concerned more with career growth than immediate

performance. Nature of Training and Development :–

In simple terms training and development refer to the imparting of specific skills,

abilities and knowledge to an employee.It is any attempt to improve current or future

employee performance by increasing an employee’s ability to perform through learning,

usually by changing the employee’s attitude or increasing his her skills and knowledge.

The need for training and development is determined by the employee’s performance

deficiency as follows: Training and development need = standard performance-actual performance The purpose of training :– The purpose of training is to: To increase productivity and quality To promote versatility and adaptability to new methods To reduce the number of

accidents To reduce labour turnover To increase job satisfaction displaying itself in lower labour turn-over and less

absenteeism To increase efficiency Advantages of training :– 5. Leads to improved profitability and/or more positive attitudes toward profits

orientation. 6. Improves the job knowledge and skills at all levels of the organization. 7. Improves the morale of the workforce. 8. Helps people identify with organizational goals. 9. Helps create a better corporate image. 10. Fasters authentically, openness and trust. 11. Improves the relationship between boss and subordinate. 12. Aids in organizational development. 13. Learns from the trainee. 14. Helps prepare guidelines for work. 15. Aids in understanding and carrying out organizational policies. 16. Provides information for future needs in all areas of the organization. 17. Organization gets more effective decision-making and problem solving. 18. Aids in development for promotion from within. 19. Aids in developing leadership skill, motivation, loyalty, better attitudes, and other

aspects that successful workers and mangers usually display.

Aids in increasing productivity and/or quality of work.

Helps keep costs down in many areas, e.g. production, personnel. Administration,

etc.

Develops a sense of responsibility to the organization for being competent and knowledgeable.

Improves labor-management relations. 20. Reduces outside consulting costs by utilizing competent internal consulting.

Disadvantages of training :– 3. Can be a financial drain on resources; expensive development and testing,

expensive to operate? 4. Often takes people away from their job for varying periods of time; 5. Equips staff to leave for a better job 6. Bad habits passed on 7. Narrow experience

Development :– Hamlin observed development as training of future jobs. According to Nadler :– development is concerned with providing learning experiences to

employees so that they may be ready to move in new directions that organisational

change may require. A limitation of training needs based solely on needs analysis that it fails to address the

development issue Development is the need to enhance competencies beyond those

required by the immediate job, for example: Values & ethics of organisation & professional group

Sources of enthusiasm

METHODS AND TECHNIQUES OF TRAINING :–A multitude of methods of training is

used to train employees. Training methods are categorized into two groups :– 15. On the job training and 16. Off-the job methods.

On the job training :– Refers to methods that are applied in the workplace, while the employees is actually

working. “Training that is planned and structured that takes place mainly at the normal workstation of

the trainee- although some instruction may be provided in a special training area on site -

and where a manager, supervisor, trainer or peer colleague spends significant time with a

trainee to teach a set of skills that have been specified in advance.” Advantages :– 1. Tailor- made course content with use of REAL company situations/examples. 8. It is usually less expensive than off-job training 9. Learning will take place using the equipment which will be actually used

Disadvantages :– c. Possibility of poor instruction and insufficient time. d. Trainee may be exposed to bad work practices. e. A large amount of spoiled work and scrap material may be produced. f. Valuable equipment may be damaged. g. Training takes place under production conditions that are stressful, i.e. noisy, busy,

confusing and exposing the trainee to comments by other workers. Off-job training Advantages :– 8. A specialist instructor enables delivery of high quality training. 9. Wider range of facilities and equipment are available. 10. The trainee can learn the job in planned stages. 11. It is free from the pressures and distractions of company life. 12. It is easier to calculate the cost of off-job training because it is more self- contained 13. Cross-fertilisation of ideas between different companies.

Disadvantages :– 8. Can result in transfer of learning difficulties when a trainee changes from training equipment to production equipment. 9. No training can be entirely off-job as some aspects of the task can only be learned by doing them in the normal production setting, with its own customs and network of personal relationships. 6. Can be more expensive. 7. Carrying out the training On the Job Training Orientation training

Job-instruction training

Apprentice training

Internships and assistantships

Job rotation

Coaching

1. Orientation :– induction or orientation training is for comforting the new recruits to put

them at ease and making them aware of everything about work,job organization structure

norms, values, rules and regulation and technique required. 2. JIT job instruction training :– JIT is given to employees for giving them necessary instruction about new technology of job. 3. Refresher Training :– This kind of training is given to accommodate rapid change in

technological knowhow and new invention in form of short term courses or training

programs. 4. Apprenticeship Training :– Here some apprentices spend a prescribed time of working

with an expert & experienced worker as trainee.

Off-the –job training: are used away from workplaces. Vestibule

Lecture

Special study

Films

Television

Conference or discussion

Case study

Role playing

Simulation

Programmed instruction

Laboratory training

9. Vestibule Training :– This training method attempt to duplicate on-the-job-situation in a company classroom. It is

training offered on actual equipment used on job but conducted away from actual work. It is

a classroom training that is often imported with the help of the equipment and machines,

which are identical with those in use in the place of work. This technique enables the trainees

to concentrate on learning new skill rather than on performing on actual job. This type of

training is efficient to train semi-skilled personnel, particularly when many employees have to

be trained for the same kind of work at the same time. Often used to train – bank tellers,

inspectors, machine operators, typists etc. In this, training is generally given in the form of

lectures, conferences, case studies, role-play etc.

2. Demonstrations And Example :– In this type of training method trainer describes and

displays something, as & when he teaches an employee, how to do something by

actually performing the activity himself & going on explaining why & what he is doing.

This method is very effective in teaching because it is much easier to show a person how

to do a job than tell him or give him instruction about a particular job. This training is

done by combination with lectures, pictures, text materials etc. 2. Lectures :– Lecture is a verbal presentation of information by an

instructor to a large audience. The lecture is presumed to possess a considerable depth of knowledge of

the subject at hand. A virtue of this method is that is can be used for very large groups, and hence the

cost per trainee is low. This method is mainly used in colleges and universities, though its application is

restricted in training factory employees. Limitations of the lecture method account for its low

popularity. The method violates the principle of learning by practice. It constitutes a one- way

communication.There is no feedback from the audience. Continued lecturing method can be made

effective it if is combined with other methods of training. 3. Audio-visuals :– Audio-visuals include television slides, overheads, video-types and films. These can

be used to provide a wide range of realistic examples of job conditions and situations in the condensed

period of time. Further, the quality of the presentation can be controlled and will remain equal for all

training groups. But, audio-visuals constitute a one-way system of communication with no scope for

the audience to raise doubts for clarification. Further, there is no flexibility of presentation from

audience to audience.

4. Programmed Instruction (PI) :– This is method where training is offer without the intervention of a

trainer. Information is provided to the trainee in blocks, either in a book form of through a teaching

machine. PI involves:– 11. Presenting questions, facts, or problems to the learner 12. Allowing the person to respond 13. Providing feedback on the accuracy of his or her answers 4. If the answers are correct, the learner proceeds to the next block. If not, he or she repeats the same.

5. Computer-Assisted Instruction (CAI) :– this is an extension of the PI method. CAI provides for

accountability as tests are taken on the computer so that the management can monitor each trainee’s

progress and needs. CAI training program can also be modified easily to reflect technological

innovations in the equipment for which the employee is being trained. This training also tends to be

more flexible in that trainees can usually use the computer almost any time they want, thus get training

when they prefer. 6. Apprenticeship :– This method of training is usually done in crafts, trades and in technical areas. It is

the oldest and most commonly used method, if the training is relatively for a longer period. Here a

major part of training is spent on the job productive work. Each apprentice is given a programme of

assignments according to a pre-determined schedule, which provide for efficient training in trade skills.

7. Simulation :– A simulator is any kind of equipment or technique that duplicates as nearly as

possible the actual conditions encountered on the job. Simulation then, is an attempt to create a

realistic decision-making environment for the trainee. Simulations present likely problem

situations and decision alternatives to the trainee. The more widely held simulation exercises are

case study, role-playing and vestibule training. Conference :– In this method, the participating individuals confer to discuss points of common

interest to each other. It is a basic to most participative group centered methods of developments.

This emphasis on small group discussion, on organized subject matter and on the active

participation of the members involved.

There are three types of conferences, Direct discussion :– Here trainer guides the discussion in such a way that the facts, principles

or concepts are explained. Training Conference :–The instructor gets the group to pool its knowledge and past experience

and brings different points of view to bear on the problem. Seminar Conference :– In this method instructor defines the problem, encourages and ensures the full participation in the discussion.

10. Case Studies :– This method is developed in at the Harvard Law School. When the trainees are

given cases to analyse, they are asked to identify the problem and recommend tentative solution

for it. The case study is primarily useful as a training technique for supervisors and is specially

valuable as a technique of developing discussion-making skills, and for broadening the

prospective of the trainee.In case study method the trainee is expected to master the facts, should

acquainted with the content of the case, define the objective sought in dealing with the issues in

the case, identify the problem, develop alternative courses of action, define the controls needed to

make the action effective and role play the action to test its effectiveness and find conditions that

may limit it.

6. Role Playing :– In role-playing trainees act out the given role as they would be in stage play.

Two or more trainees are assigned parts to play before the nest of the class. Here role players are

informed of a situation and of the respective roles they have to pay. Sometimes after the

preliminary planning, the situation is acted out by the role players. This method primarily involves

employee-employer relationship – Hiring, firing, discussing a grievance procedure, conducting a

post appraisal interview etc.

7. Programmed Instructions :– This method involves a sequence of steps that are often set up

through the central panel of an electronic computer as guides in the performance of desired

operation or series of operations. This method involves breaking information down into

meaningful units and then arranging these in a proper way to form a logical and sequential

learning. The programme involves – presenting questions, facts or problems to trainees to utilize

the information given and the trainee instantly receive feedback on the basis of the accuracy of his

answers.

STEPS IN THE TRAINING PROCESS :–

Organizational objectives Assessment of Training needs Establishment of Training goals Devising training programme Implementation of training programme Evaluation of results

Organizational Objectives and Strategies :– The first step in the training process in an organization

is the assessment of its objectives and strategies. Needs Assessment :– Needs assessment diagnosis present problems and future challenges to be

met through training and development. Needs assessment occurs at two levels- group and individual. An individual obviously needs

training when his or her performance falls short of standards, that is, when there is performance

deficiency. Inadequacy in performance may be due to lack of skill or knowledge or any other

problem. The problem of performance deficiency caused by absence of skills or knowledge can be

remedied by training. Faulty selection, poor job design, improving quality of supervision, or

discharge will solve the problem.

Benefits of Needs assessment are :–

Trainers may be informed about the broader needs of the training group and their sponsoring organizations.

The sponsoring organizations are able to reduce the perception gap between the participant and his or her boss about their needs and expectations from the training programmes.

Trainers are able to pitch their course inputs course inputs closer to the specific needs of the

participants. Training and Development objectives :– Once training needs are assessed, training and

development goals must be established. Without clearly set goals, it is not possible to design a

training and development programme and, after it has been implemented there will be no way of

measuring its effectiveness. Goals must be tangible, verifiable, and measurable. This is easy where

skills’ training is involved. Designing Training and Development Programme :– Every training and development programme

must address certain vital issues Who participates in the programme? Who are the trainers? What methods and techniques are to be used for training? What should be the level of training? What learning principles are needed? Where is the program conducted?

Who are the trainers: Trainers should be selected on the basis of self- nomination,

recommendations of supervisors or by the HR department itself. Whatever is the basis, it is

advisable to have two or more target audience. For example, rank-and-file employees and their

supervisors or by the HR department itself. Methods of Evaluation :– Various methods can be used to collect data on the outcomes of training. Some of these

are : Questionnaires :–Comprehensive questionnaires could be used to obtain opinion reactions, views of trainees. Tests :– Standard tests could be used to find out whether trainees have learnt anything during and

after the training. Interviews :– Interviews could be conducted to find the usefulness of training offered to operatives.

Studies :– Comprehensive studies could be carried out eliciting the opinions and judgments of

trainers, superiors and peer groups about the training. Feedback :– After the evaluation, the situation should be examined to identify the probable causes

for gaps in performance. The training evaluation information. (about costs, time spent, outcomes,

etc.) should be provided to the instructors’ trainees and other parties concerned for control,

correction and improvement of trainees’ activities. The training evaluator should follow it up

sincerely so as to ensure effective implementation of the feedback report at every stage.

Points in Planning Training Evaluation Objectives of Evaluation are-: To monitor the quality of training Provide feedback To appraise the overall effectiveness of the investment in training To assist the development of new methods of training To aid the individual evaluate his or her own learning experience.

Executive Development It is also known as „management development‟ or „executive development‟. It is one of the

fastestdeveloping areas in personnel. It is realized that an effective management team may be as

important to the survival of an organization as any tangible item on the balance sheet. Interest in

management development is great partly due to the shortage of well-trained managers. Executive

development or management development is a systematic process of learning and growth by which

managerial personnel gain and apply knowledge, skills, attitudes and insights to manage the work in

their organization effectively and efficiently. The program of executive development aims at achieving following purposes: - To sustain good performance of managers throughout their careers by exploiting their full potential.

To understand economic, technical, and institutional forces in order to solve business problems. To acquire knowledge about problems of human resources. To think through problems this may confront the organization now or in the future. To develop responsible leaders. To inculcate knowledge of human motivation and human relationships.

To increase proficiency in management techniques such as work study, inventory control,

operations research and quality control. According to Flippo “Executive Development includes the process by which managers and

executives acquire not only skills and competency in their present job but also capabilities for future

managerial tasks of increasing difficulty and scope.” The characteristics of executive development are as following: -

Executive development is a planned and organized process of

learning. It is an ongoing and never ending exercise. Executive development is a long term process as managerial skills cannot be developed overnight. It aims at preparing managers for managers. Today, it is the growth that makes one person stay at the company. The opportunity and challenges is

what keeps a person satisfied and charmed with his job. Companies have understood this fact and

therefore are forming policies and procedures to develop their employees. Executive development Program (EDP) is one such program. With Human resource making a move

from a welfare department to a strategic partner, more and more companies are undertaking this

program. We at Career Solutions provide you the opportunity of developing a specific EDP for your

company. There are four major steps to be covered during the EDP-

Problem Assessment: the experts along with the concerned employees and CEO shall begin with an assessment of the company‟s current problem and owner‟s plans of the future.

Management Audit and Appraisal: there shall be regular feedback sessions to check as to whether we are reaching where we are supposed to reach.

Analysis of Development Needs: here the problem that has been uncovered shall be tried to and remedied via a development program.

Identify Replacement Needs: the assessment may uncover a need to recruit and select new

management talent. The format of EDP will vary with company‟s size and nature of operation so as to

provide optimum result.

Importance and Factors Influencing Executive Development Executive development is more future oriented. It is more concerned with education than is employee

training. In today‟s competitive environment, an organization has to be concerned about the

development of supervisors, middle level managers and top-level executive. Executive development is important for the following reasons: - Executive development programmes are required to train and develop professional managers. It helps managers to develop skills to face cut throat competition.

It enables managers to face problems related to technology and institution. It helps in developing better relations with the labors.

Executives need training and education to understand and adjust to changes in socio-economic changes.

Executive development is required to broader the outlook of managers. Factors Influencing Executive Development A host of factors influencing the executive development processes in organizations are as follows:-

Failure to train the managers will lead to ineffective and inefficient managers who negatively affect

the organization‟s performance.In the absence of training and developmental avenues, the performing

managers may get demotivated and frustrated in leading the organizations. This would lead to severe

losses for the organization in financial parameters, in terms of the cost of recruiting and training the

new incumbent. The organizational performance may be affected by the loss of market shares, lower

sales, reduced profitability, etc. The absence/ shortage of trained and skilled managers make it

important for the organizations to have appropriate retention strategies. Training and development is

being used by organizations as a part of their retention strategy. The competitive pressures make it

necessary for organizations to continuously roll out new products and services, and also maintain the

quality of the existing ones. The training and development of managers would help them in

developing the competencies in these areas. The competitive environment is making it imperative for

the organizations to continuously restructure and re-engineer, and to embark upon these processes, it

is essential for the organizations to train the managers for the new scenarios.

Evaluation of Executive Development In the competition scenario, where the focus is on efficiency and profitability and the return on

investment (ROI) on all the activities of the organization, executive development cannot be an

exception to the phenomenon.

The evaluation of the process assumes importance from the following perspectives: Improving the quality of the training and development process. Improving the efficiency and competency of the trainers. Making improvements in the system to make it more responsive and realistic. Aligning the training activities to the organizational objectives. Building the cost implications of the training into the organizational budget. Evaluating the ROI on account of training and development to justify further investments. Changing the perception of the management on training as expenditure to more as an investmentfor the future growth of the organization. The levels of evaluation include the reaction level, immediate level, intermediate level, and ultimate level. For the purpose of evaluation, it is essential to collect the data for which there should be appropriate

measures for data collection, both during the course of the training programme and after the training

programme. Some of the methods being used by experts are self-complete questionnaires,

interviews,observations, and desk research. The desk research involves low cost and less amount of

time. The various techniques of executive development may be classified into two broad categories: -

1. On the Job Techniques: It is delivered to employees while they perform their regular jobs. In this

way, they do not lose time while they are learning. After a plan is developed for what should be

taught,employees should be informed of the details. A time-table should be established with periodic

evaluations to inform employees about their progress. On-the-job techniques include orientations, job

instruction training, apprenticeships, internships and assistantships, job rotation and coaching. It

consists of: - Coaching-Coaching is a one-to-one relationship between trainees and supervisors which offers

workers continued guidance and feedback on how well they are handling their tasks. The coach

assigns the task, monitors the trainee behavior, and provides reinforcement and feedback. Coaching is

commonly used for all kinds of trainees, from unskilled to managerial position. This method is

critically depends on the quality of the coach. Under Study- An understudy may be assistant to someone or special assistant to some supervisory or executive positions. He learns by experience, observation, guidance and coaching. Position Rotation-This involves the movement of the trainee from one job to another. This helps him

to have a general understanding of how the organization functions. Apart from releasing boredom, Job

rotation allows workers to build rapport with a wide range of individuals within the organization,

facilitating future cooperation among various departments. Such cross-trained personnel offer a great

deal of flexibility for organizations when transfers, promotions or replacement become inevitable.

Multiple Management- It provides knowledge about the organization to the junior and middle managerial personnel. Here the members are exposed to all types of the decision taken at higher level. 2. Off-the-Job Technique: It consists of : Lectures- It is a traditional and direct method of instruction. The instructor organizes the material and

gives it to a group of trainees in the form of a talk. To be effective, the lecture must motivate and

create interest among the trainees. An advantage of this method is that it is direct and can be used for a

large group of trainees. The major limitation of this method is that it does not provide for the transfer

of training effectively. Case Studies- It presents the trainees with a written description of a business or organizational

problem. The object of the case method is to teach the trainees how to analyze information, generate

alternative decisions, and evaluate the alternatives. Cases can be analyzed by individuals or small

groups. Feedback and reinforcement are provided through oral discussion or written comments from

the instructor. Group Discussions- This method is a direct discussion on a specific topic conducted with a relatively small group of trainees. This method is useful for teaching and exploring difficult

conceptual materials, and for changing attitudes and opinions. It provides opportunity for feedback,

reinforcement practice, motivation, and transfer, largely due to the active interchange of ideas

between the participants. Role Playing- In most of role-playing assignments, each of the student takes the role of a person

affected by an issues on human life and effect the human activities all around us from the perspective

of that person. Management Games- Verities of business and management games have been devised and are being

used with the varying degree of success in the developing programmes. A management game is

classroom exercise in which a number of team of trainees competes against each other to achieve

certain objectives. Sensitivity Training- It has been successfully employed by behavioral scientists over the past thirty

years. Sensitivity to the circumstances and feeling of others is the cornerstone of human relationships.

It is important to note that sensitivity is not just an emotion; it must express itself in actions as well,

especially when people we know are experiencing pain and difficulties.

Career Planning Career: Termed as professional „ADVANCEMENT‟ that means the sequence of positions that a person holds over his or her professional life Planning: A process of setting goals, establishing strategies & invent plans to coordinate organizational resource Career Planning: The process enables employees to identify career goals and the paths to the goals

Career Development: It is consist of the personal improvement one undertakes to achieve a personal

career path. Objective of Career Planning

Career Equity: The equity in the promotion system with respect to opportunities for career advancement

Supervisory Concern: Their supervisors to play an active role in career development and provide timely feedback on performance

Awareness of Opportunities: Knowledge of opportunities for career advancement d. Employment Interest: Different amount of information & have different degrees of interest in career advancement, dependent on variety of factors e. Career Satisfaction: It depends on their age & occupation, have different levels of career satisfaction.

Benefits of Career Planning 1.Aligns strategy & internal staffing requirement 2.Develop promotable employee 3.Facilitate international placement

4.Assists with workforce diversity

5.Lower turnover

Need for Career Planning :– Career Planning is necessary due to the following reasons :–

To attract competent persons and to retain them in the organization. To provide suitable promotional opportunities. To enable the employees to develop and take them ready to meet the future challenges. To increase the utilization of managerial reserves within an organization. To correct employee placement. To reduce employee dissatisfaction and turnover. To improve motivation and morale.

Process of Career Planning :– The following are the steps in Career Planning :–

Analysis of individual skills, knowledge, abilities, aptitudes etc. Analysis of career opportunities both within and outside the organization. Analysis of career demands on the incumbent in terms of skills, knowledge, abilities,

aptitude etc., and in terms of qualifications, experience and training received etc. 7. Relating specific jobs to different career opportunities. 8. Establishing realistic goals both short-term and long-term. 9. Formulating career strategy covering areas of change and adjustment. 10. Preparing and implementing action plan including acquiring resources for achieving goals.

Limitations of career planning :–

4. Dual Career Families :– With the increase in career orientation among women, number of

female employees in on increase. With this, the dual career families have also been on increase. Consequently, one of those family members might face the problem of transfer. This has become a complicated problem to organization.

5. Low ceiling careers :– Some careers do not have scope for much advancement. Employees

cannot get promotions despite their career plans and development in such jobs. 5 Declining Career Opportunities : Career opportunities for certain categories reach the declining

stage due to the influence of the technological or economic factors. Solution for such problem is

career shift. 6 Downsizing/Delayering and careers :– Business process reengineering, technological

changes and business environmental factors force the business firms to restructure the organizations by delayering and downsizing. Downsizing activities result in fixing some employees, and degrading some other employees.

Performance Appraisals Performance: It is the way in which someone or something functions/acts.

Appraisal: An expert assessment or estimation of the worth, value, or quality of a person or thing.

3. Performance Appraisal: Performance Appraisal is a systematic evaluation of employee‟s performance & to

understand the abilities of his/her for further growth & development

4. Uses of Performance Appraisal: Performance Improvement: Through feedback an appropriate action can be taken to improve the performance.

Compensation Adjustment: Performance evaluation held decision makers to determine who should receive

pay increase.

Placement Decisions: Promotions transfer or demotions based on the past performance upon which the

placement decisions are made.

Training & Development Needs: Poor performance indicates retraining while good performance indicates

potential developments.

Career Planning & Development: Performance feedback guides career decision specific career paths one

should investigate.

Staffing Process Deficiencies: Good or bad performance indicates the strengths & weaknesses of personnel

dept. staffing process.

Informational Inaccuracies: Poor performance indicates errors in job analysis information of HR Plans.

Job Design Errors: Poor performance can be a symptom of ill-conceived job design.

Equal Employment Opportunity: Accurate performance appraisal information‟s indicates no discrimination

regarding internal placement decisions.

External Challenges: Like family, health or other financial factors need to be covered by HR Dept. otherwise

they can affect the performance of an individual.

Feedback to Human Resources: Good or bad performance indicates that how well HR function is performing. 5. Performance Appraisal Challenges:

Legal Constraints: It should be free from all illegal discrimination. The use of formed evaluation by HR,

should be reliable & valid

Rater Biases: The bias often occurs when the raters do not remain emotionally unattached while they evaluate

the employee performance i. The Halo Effect: It occurs when the rater‟s personal opinions about the employee influences the measurement of

performance ii. The Error of Central Tendency: It occurs when the rater‟s personal opinion doesn‟t accommodate the extremes

e.g, very good or very bad iii. Leniency & Strictness Bias: It occurs when the performance standards are vague and not comprehensively

conceived/established iv. Cross Cultural Biases: It occurs when the rater‟s tend to apply their cultural expectations to someone from

different culture v. The Recency (most recent) Effect: It occurs when the rater‟s are affected by recent event or action of the

employee that is good or bad vi. Reducing Rater Bias: It occurs through training , feedback & the proper selection of performance appraisal

techniques

Benefits of Performance Appraisal An effective performance appraisal system can be of benefit to three parties they are for organization, for appraiser and for appraisee. 1) For the Organizations: Following are the benefits of an organization. a) It leads to better performance throughout the organization, due to successful communication of

the objectives and values of the organizations, sense of being close to the organization, loyalty

and improved relationships between managers and staff. b) Overall improvement in the duties performed by each employee of the organization. c) Due to performance appraisal of employee new ideas for improvement in their work is generated. d) Long-term plans can be generated. e) The need for training and development can be identified more clearly. f) A traditions of nonstop improvement and success in the organization can be formed and

maintained. g) Career development plans can be chalked out for capable employee to enhance their performance

in future. 2) For the appraiser: Following are the benefits to the appraiser: a) It gives an opportunity to the appraiser to develop a general idea of individual jobs and

departments. b) For every new or difficult situation new idea is generated for improvement or for overcoming that

Problem. c) It gives an opportunity to integrate team and individual objectives and targets with departmental

and organizational objectives. d) It gives an opportunity to explain the amount of work expected by manager from teams and e) individuals. f) It gives an opportunity to focus more on targets. g) It enables to form more productive relationship with staff based on mutual trust and

understanding. 3) For the Appraisee: Following are the benefits for the appraisee: a) Increased motivation. b) Increased job satisfaction. c) Increased sense of personal value. d) Increase in morale of an employee. e) It gives an opportunity to know their strength and weaknesses. f) It gives an idea about areas of their improvement. g) There will be a chance to subordinate to express his views even after performance appraisal h) An employee should express his emotional needs and his value system which is considered to be

important today.

TECHNIQUES / METHODS OF PERFORMANCE APPRAISALS Numerous methods have been devised to measure the quantity and quality of performance appraisals.

Each of the methods is effective for some purposes for some organizations only. None should be

dismissed or accepted as appropriate except as they relate to the particular needs of the organization or

an employee. Broadly all methods of appraisals can be divided into two different categories. Past Oriented Methods Future Oriented Methods Past Oriented Methods 1. Rating Scales: Rating scales consists of several numerical scales representing job related

performance criterions such as dependability, initiative, output, attendance, attitude etc. Each scales

ranges from excellent to poor. The total numerical scores are computed and final conclusions are

derived. Advantages – Adaptability, easy to use, low cost, every type of job can be evaluated, large

number of employees covered, no formal training required. Disadvantages – Rater‟s biases 2. Checklist: Under this method, checklist of statements of traits of employee in the form of Yes or

No based questions is prepared. Here the rater only does the reporting or checking and HR department

does the actual evaluation. Advantages – economy, ease of administration, limited training required,

standardization. Disadvantages – Raters biases, use of improper weighs by HR, does not allow rater to

give relative ratings 3. Forced Choice Method: The series of statements arranged in the blocks of two or more are given

and the rater indicates which statement is true or false. The rater is forced to make a choice. HR

department does actual assessment. Advantages – Absence of personal biases because of forced

choice. Disadvantages – Statements may be wrongly framed. 4. Forced Distribution Method: here employees are clustered around a high point on a rating scale.

Rater is compelled to distribute the employees on all points on the scale. It is assumed that the

performance is conformed to normal distribution. Advantages – Eliminates Disadvantages –

Assumption of normal distribution, unrealistic, errors of central tendency. 5. Critical Incidents Method: The approach is focused on certain critical behaviors of employee

that makes all the difference in the performance. Supervisors as and when they occur record such

incidents. Advantages – Evaluations are based on actual job behaviors, ratings are supported by

descriptions, feedback is easy, reduces recency biases, chances of subordinate improvement are high.

Disadvantages – Negative incidents can be prioritized, forgetting incidents, overly close supervision;

feedback may be too much and may appear to be punishment. 6. Behaviorally Anchored Rating Scales: statements of effective and ineffective behaviors

determine the points. They are said to be behaviorally anchored. The rater is supposed to say, which

behavior describes the employee performance. Advantages – helps overcome rating errors.

Disadvantages – Suffers from distortions inherent in most rating techniques.

7. Field Review Method: This is an appraisal done by someone outside employees‟ own department

usually from corporate or HR department. Advantages – Useful for managerial level promotions,

when comparable information is needed, Disadvantages – Outsider is generally not familiar with

employees work environment, Observation of actual behaviors not possible. 8. Performance Tests & Observations: This is based on the test of knowledge or skills. The tests

may be written or an actual presentation of skills. Tests must be reliable and validated to be useful.

Advantage – Tests may be apt to measure potential more than actual performance. Disadvantages –

Tests may suffer if costs of test development or administration are high. 9. Confidential Records: Mostly used by government departments, however its application in

industry is not ruled out. Here the report is given in the form of Annual Confidentiality Report (ACR)

and may record ratings with respect to following items; attendance, self expression, team work,

leadership, initiative, technical ability, reasoning ability, originality and resourcefulness etc. The

system is highly secretive and confidential. Feedback to the assessee is given only in case of an

adverse entry. Disadvantage is that it is highly subjective and ratings can be manipulated because the

evaluations are linked to HR actions like promotions etc. 10. Essay Method: In this method the rater writes down the employee description in detail within a

number of broad categories like, overall impression of performance, promoteability of employee,

existing capabilities and qualifications of performing jobs, strengths and weaknesses and training

needs of the employee. Advantage – It is extremely useful in filing information gaps about the

employees that often occur in a better-structured checklist. Disadvantages – It its highly dependent

upon the writing skills of rater and most of them are not good writers. They may get confused success

depends on the memory power of raters. 11. Cost Accounting Method: Here performance is evaluated from the monetary returns yields to his

or her organization. Cost to keep employee, and benefit the organization derives is ascertained. Hence

it is more dependent upon cost and benefit analysis. 12. Comparative Evaluation Method (Ranking & Paired Comparisons): These are collection of

different methods that compare performance with that of other co-workers. The usual techniques used

may be ranking methods and paired comparison method. Ranking Methods: Superior ranks his worker based on merit, from best to worst. However how best and why best are not elaborated in this method. It is easy to administer and explanation. Paired Comparison Methods: In this method each employee is rated with another employee in the

form of pairs. The number of comparisons may be calculated with the help of a formula as under. N x (N-1) / 2

Future Oriented Methods 1. Management By Objectives: It means management by objectives and the performance is rated against the achievement of objectives stated by the management. MBO process goes as under. Establish goals and desired outcomes for each subordinate Setting performance standards Comparison of actual goals with goals attained by the employee Establish new goals and new strategies for goals not achieved in previous year. Advantage – It is more useful for managerial positions. Disadvantages – Not applicable to all jobs, allocation of merit pay may result in setting short-term goals rather than important and long-term goals etc. 2. Psychological Appraisals: These appraisals are more directed to assess employees potential for

future performance rather than the past one. It is done in the form of in-depth interviews,

psychological tests, and discussion with supervisors and review of other evaluations. It is more

focused on employees emotional, intellectual, and motivational and other personal characteristics

affecting his performance. This approach is slow and costly and may be useful for bright young

members who may have considerable potential. However quality of these appraisals largely depend

upon the skills of psychologists who perform the evaluation. 3. Assessment Centers: This technique was first developed in USA and UK in 1943. An assessment

center is a central location where managers may come together to have their participation in job

related exercises evaluated by trained observers. It is more focused on observation of behaviors across

a series of select exercises or work samples. Assessees are requested to participate in in-basket

exercises, work groups, computer simulations, role playing and other similar activities which require

same attributes for successful performance in actual job. The characteristics assessed in assessment

center can be assertiveness, persuasive ability, communicating ability, planning and organizational

ability, self confidence, resistance to stress, energy level, decision making, sensitivity to feelings,

administrative ability, creativity and mental alertness etc. Disadvantages – Costs of employees

traveling and lodging, psychologists, ratings strongly influenced by assessee‟s inter-personal skills.

Solid performers may feel suffocated in simulated situations. Those who are not selected for this also

may get affected. Advantages – well-conducted assessment center can achieve better forecasts of future performance

and progress than other methods of appraisals. Also reliability, content validity and predictive ability

are said to be high in assessment centers. The tests also make sure that the wrong people are not hired

or promoted. Finally it clearly defines the criteria for selection and promotion.

4. 360-Degree Feedback: It is a technique which is systematic collection of performance data on an

individual group, derived from a number of stakeholders like immediate supervisors, team members,

customers, peers and self. In fact anyone who has useful information on how an employee does a job

may be one of the appraisers. This technique is highly useful in terms of broader perspective, greater

self-development and multi-source feedback is useful. 360-degree appraisals are useful to measure

inter-personal skills, customer satisfaction and team building skills. However on the negative side,

receiving feedback from multiple sources can be intimidating, threatening etc. Multiple raters may be

less adept at providing balanced and objective feedback. This method is also known as „multi-rater

feedback‟, it is the appraisal in a wider perspective where the comment about the employees‟

performance comes from all the possible sources that are directly or indirectly related with the

employee on his job.In 360 degree performance appraisal an employee can be appraised by his peers,

managers (i.e. superior),subordinates, team members, customers, suppliers/ vendors - anyone who

comes into direct or indirect contact with the employee and can provide necessary information or

feedback regarding performance of the employee the “on-the-job”. The four major component of 360 degree performance appraisal are 1. Employees Self Appraisal 2. Appraisal by Superior 3. Appraisal by Subordinate 4. Peer Appraisal. Employee self appraisal gives an option to the employee to know his own strengths and weaknesses,

his achievements, and judge his own performance. Appraisal by superior forms the traditional part of

the 360 degree performance appraisal where the employees‟ responsibilities and actual performance is

judged by the superior. Appraisal by subordinate gives a chance to evaluate the employee on the basis

of communication and motivating abilities, superior‟s ability to delegate the work, leadership qualities

etc. It is also known as internal customers; the correct opinion given by peers can aid to find

employees‟ who are co-operative, employees who ready to work in a team and understanding towards

others. 5. Cost Accounting Method: In this method performance of an employee is evaluated on the basis of

monetary returns the employee gives to his or her organization. A relationship is recognized between

the cost included in keeping the employee in an organization and the benefit the organization gets

from him or her. The evaluation is based on the established relationship between the cost and the

benefit. The following factors are considered while evaluating an employee‟s performance: 1. Interpersonal relationship with others. 2. Quality of product produced or service given to the organization. 3. Wastage, damage, accidents caused by the employee. 4. Average value of production or service by an employee. 5. Overhead cost incurred.

Essentials of a Good Performance Appraisal System:

1. Standardized Performance Appraisal System 2. Uniformity of appraisals 3. Defined performance standards 4. Trained Raters 5. Use of relevant rating tools or methods 6. Should be based on job analysis 7. Use of objectively verifiable data 8. Avoid rating problems like halo effect, central tendency, leniency, severity etc. 9. Consistent Documentations maintained 10. No room for discrimination based on cast, creed, race, religion, region etc.

What is Job evaluation? Explain its objectives and principles.What are the methods of Job evaluation? Ans. Job evaluation is the process of analyzing and assessing the various jobs systematically to

ascertain their relative worth in an organization. Job is evaluated on the basis of their content and is

placed in the order of their importance. “Job evaluation is a process of finding out the relative worth of a job as compared to other jobs” The following objectives are derived from the analysis of the above-mentioned definitions:

1)To gather data and information relating to job description, job specification and employee

specifications for various jobs in an organization. 2)To compare the duties, responsibilities and demands of a job with that of other jobs. 3)To determine the hierarchy and place of various jobs in an organization. 4)To determine the ranks or grades of various jobs. 5)To ensure fair and equitable wages on the basis of relative worth or value of jobs. In other words equal wages are fixed to the jobs of equal worth or value. 6) To minimize wage discrimination based on sex, age, caste, region, religion etc. Job Evaluation Process :–

Objectives of Job Evaluation

Job Analysis

Job Specification Job Description

Job Evaluation Programme

Wage Survey

Employee Classification Methods of Job Evaluation :

Job-evaluation methods are of two categories-Analytical and Non Analytical Job Evaluation

Analytical Non-Analytical

Point Factor Ranking Job Banding Method Comparion Method Grading

The job-evaluation process starts defining objectives of evaluation and ends with establishing wage and salary differentials. Methods of Job Evaluation :– Job-evaluation methods are of two categories :– 1. Analytical Job Evaluation 2. Non Analytical Job Evaluation 1. Analytical :– 1. Point Method 2. Factor Comparison Method Point Method :– The system starts with the selection of job factors, construction of degrees for each

factor, and assignment of points to each degree. Different factors are selected for different jobs, with

accompanying differences in degrees and points. The National Electrical Manufacturing Association (NEMA), USA has suggested the factors, degrees

and point for hourly rated and salaried jobs. The job factors taken into consideration by NEMA for

hourly rated jobs are: Skill :– a. Education b. Experience c. Initiative & ingenuity Effort :– a. Physical demand b. Mental and / or visual demand Responsibility :– a Responsibility for equipment or process b. Responsibility for materials or product c. Responsibility for safety of others d. Responsibility Job Conditions :– a. Working conditions b. Hazards NEMA – Manual for salaried jobs Factors :– Ø Education Ø Experience Ø Complexity of duties Ø Monetary responsibility Ø Working Condition Ø Contacts Ø Types of Supervision Ø Extent of Supervision

Factor-Comparison Method :– The factor-comparison method is yet another approach for job

evaluation in the analytical group. Under this method, one begins with the selection of factors; usually

five of them- is assumed to be constant for all the jobs. Each factor is ranked individually with other

jobs. For example, all the jobs may be compared first by the factor „mental requirements.‟ the skills

factor, physical requirements, responsibility, and working conditions are ranked. The total points are

then assigned to each factor. The worth of a job is then obtained by adding together all the point

values.

Non-Analytical :– 1. Ranking Method 2. Banding Method 3. Job-Grading Method Ranking Method :– this is the simplest, the most inexpensive and the most expedient method of

evaluation. The evaluation committee assesses the worth of each job on the basis of its title or on its

contents, if the latter is available. But the job is not broken down into elements or factors. Each job is

compared with others and its place is determined. The method has several drawbacks. Job evaluation may be subjective, as the jobs are not broken into factors. It is hard to measure whole jobs. Ranking is the most straightforward method of work evaluation. Jobs, people, or even teams can be

ranked from the ones adding most value to least value to the organization. Criteria for the ranking are

not made explicit. Jobs rather than people are easier to rank when there are a large number of people

in jobs. Teams can be ranked in a team-based environment as a substitute for or addition to the ranking of jobs

and people. When a larger number of jobs, people, or teams are to be ranked, the method of paired

comparisons can be used. With this approach each entity is compared to every other entity in terms of

value to the organization. Advantages :– 1. Simple to use if there is a small number of jobs, people, or teams to evaluate 2. Requires little time 3. Minimal administration required Disadvantages :– 1. Criteria for ranking not understood 2. Increases possibility of evaluator bias 3. Very difficult to use if there is a large number of jobs, people, or teams to evaluate 4. Rankings by different evaluators are not comparable 5. Distance between each rank is not necessarily equal 6. May invite perceptions of inequity

Banding :– A banding procedure takes place when jobs are grouped together by common

characteristics. Characteristics used to group jobs follow: exempt versus nonexempt, professional

versus non professional, union versus non union, key contributor versus non-key contributor, line

versus staff, technical versus non-technical, value-added versus non-value-added, and classified

versus non-classified. Often these groups are then rank ordered and each group is then placed in a pay

band. Advantages :– 1. Quick and easy procedure 2. Has initial face validity to employees 3. Allows for organizational flexibility 4. Minimal administration required Disadvantages :– 1. Subtle, but important, differences between groups ignored 2. Subtle, but important, differences within groups ignored 3. May invite inequity perceptions Classification :– Classification systems define the value of jobs, people, or teams with written

standards for a hierarchy of classification level. Each classification level may be defined by a number

of factors that need to be present for a job, person, or team to be slotted into a particular classification

level. These factors are usually blended together resulting in one standard for each classification level. Advantages :– 1. Jobs, people, and teams can be quickly slotted into the structure 2. Classification levels have face validity for employees 3. Standards to establish value are made explicit Disadvantages :– 1. Many jobs, people, or teams do not fit neatly into a classification level 2. Extensive judgment is required because standards used to define each factor are blended together 3. Differences between classification levels may not be equal 4. Creates status hierarchies within organizations 5. Extensive administration required Job-grading Method :– As in the ranking method, the job-grading method (or job-classification method) does not call for a

detailed or quantitative analysis of job factors. It is based on the job as a whole. The difference

between the two is that in the ranking method, there is no yardstick for evaluation, while in the

classification method, there is such a yardstick in the form of job classes or grades. Under the

classification method, the number of grades is first decided upon, and the factors corresponding to

these grades are then determined. The advantages of the method are; I) job grade descriptions are vague and are not quantified; ii) difficulty in convincing employees about the inclusion of a job in a particular grade because of

vagueness of grade descriptions; and iii) more job classification schedules need to be prepared because the same schedule cannot be used for all types of jobs.

UNIT V

Q. What is compensation aim? Explain its components with suitable example? Ans. Compensation’ in other terms also called as „Employee Remuneration‟. Remuneration is the

compensation; an employee receives in return for his or her contribution to the organization.

Remuneration occupies an important place in the life of an employee. His or her standard of living,

status in the society, motivation, loyalty, and productivity depend upon the remuneration he or she

receives. For the employer too, employee remuneration is significant because of its contribution to the

cost of production. Aims of employee compensation :– a. Attract capable employees to the organization. b. Motivate them toward superior performance.

c. Retainment of their services over an extended period of time.

The aim of employee compensation can further described as under :– 1. Attract capable employees to the organization :– Every organization looks for retaining capable employee with the organization. Infact, retaining an

employee is the most difficult function of HR Department. So for retaining an efficient employee with

the organization, he has to be provided with better compensation. That compensation that he is going

to be provided should include better salary perks, increments, promotions etc. So, a better

compensation package is going to attract the efficient employee who is very useful to an organization. 2. Motivate them toward superior performance :– For any employee, money is the main motivator. If every employee of an organization is provided

with better compensation, every body will be motivated to exhibit superior performance. The better

the pay, the better the performance. The compensation that is going to be provided to the employees

should include better salary, perks, increments, bonus etc. Even though the remaining components like

promotion are going to motivate the employees, but the basic motivator is better compensation. 3. Retainment of their services over an extended period of time :– Retainment of the services of an employee with an organization is the most difficult job of HR. So,

the retainment of the employee‟s service over a long period of time is possible only by providing

them with better compensation. Components of Compensation The following diagram gives an overview of the components of compensation: Direct :– Wages, Salaries, Commissions, Bonuses Indirect :– Insurance plans, Social Assistance, Educational Assistance, Paid Absences The Job :– Interesting Duties, Challenge, Responsibility, opportunity for recognition, feeling of advancement, achievement opportunity The Environment :– Sound policies, Competent supervision, Congenial coworkers, Appropriate status symbol, Comfortable working conditions, flexi-time, Job sharing, Cafeteria compensation

Q. Write short note on “EMPLOYEE BENEFITS AND SERVICES” Ans. These are available to all employees based in their membership in the organization. The purpose

of such benefits and services is to retain people in the organization and not to stimulate them to

greater effort and higher performance. These benefits are usually known as “fringe benefits”, & the employer offers these to the employee. The term fringe benefits are as follows – paid vacation, pension, health insurance plan etc. There are five categories of services and benefits under the term fringe benefits. Ø LEGALLY REQUIRED PAYMENTS: - Old age pension, survivor benefits, disability pension and payments made under the Workmen‟s Compensation Act. Ø PENSION AND GROUP INSURANCE: - Ø PAID REST PERIODS, WASTE-UP TIME Ø PAYMENT FOR TIME NOT WORKED Ø FESTIVAL BONUS

CLASSIFICATION OF FRINGE BENEFITS: - Ø Premium Payments :– This is the period of time, a worker has worked, and payment is based on daily or weekly. Ø Payment for special duties :–Such as working on grievance redressal procedures and labour contract negotiations. Ø Payments for health & Security benefits :– These include retirement plans, social security payments, Saving plans, Profit sharing plans, Group Life Insurance etc. Ø Payment for time not worked :– Which include payment for sick leave and for time during

which an employee is under medical care.Payments for holiday, vacations, call back time, dressing

time, portal-to-portal time and wet time. Ø Payment for employee service :– This include Cafeteria subsidies, union credit, house financing etc. Ø Other expenditure :– Like holiday bonus, on educational reimbursements, employee uniforms, work cloths, supper money or meal allowance etc.

EMPLOYEE SERVICES :– The various Employee services offered in any organization. In addition to the benefits, organizations also provide a wealth of services that employees find

desirable. These services are usually provided by the organization at no cost to employee or at a

significant reduction from what might have to be paid without the organization‟s support.

The employee services include :– Ø Services related to the types of work performed. This including subsidies for purchase and

upkeep of work, clothing and uniforms and of various types of tools, used by a worker in the course of

his work; Ø Eating facilities :– Which include the provision of company restaurants, cafeterias, canteens, lunchrooms etc. Ø Transportation facilities :– Like parking lot and bus services Ø Child Care facilities :– Comprising nurses and day care centers for children Ø Housing Services :– It includes company owned housing projects and subsidies. Ø Financial and legal services :– This includes sponsoring of loan funds, credit unions, income tax services, saving plans and group insurance plans. Ø Purchasing Services :– This includes company operated stores and discount on company products and services. Ø Education Services :– Which include sponsorship for off duty courses, educational leave, tuition

fee, refunds and scholarship for employees and their children. Ø Medical Services :– Including plant in firmaries, (clinics and hospitals, counseling and referrals to community to social services.) Ø Outplacement Services :– This include, contact with other employers in the area, help in writing up resumes and secretarial services. Ø Flexi time :– The employees are permitted to build up their flexible workday. It is called flexi time because the workers themselves determine their own starting and stopping time.

What are the different types of incentives which are given to employees? Ans. An Incentive or Reward can be anything that attracts a employee‟s attention, stimulates him to

work; Other words it can define as “an incentive scheme is a plan or programme to motivate

individual or group performance. In other terms, incentives are also called as „payments by results‟. Incentives are paid in addition to wages and salaries. Incentives depend upon productivity, sales, profit, or cost reduction efforts. The different incentive schemes :– There are: (i) Individual incentive schemes, (ii) Group incentive programs and (iii) other incentive schemes. Individual incentives are applicable to specific employee performance. Where a given task demands

group effort for completion, incentives are paid to the group as a whole. The amount is later divided

among group members on an equitable basis and other incentive schemes such as... Fringe Benefits :– These include such employee benefits as provident fund, gratuity, medical care,

hospitalization, accident relief, health and group insurance, canteen, uniform, recreation and the like.

Perquisites :– These are allowed to executives and include company car, club membership, paid

holidays, furnished house, stock opinion schemes and the like. Perquisites are offered to retain

competent executives. Non-monetary benefits :– These include challenging job responsibilities, recognition of merit,

growth prospects, competent supervision, comfortable working conditions, job sharing, and flextime.

Rewards :–People join organizations expecting rewards. Firms distribute money and other benefits in

exchange for the employee‟s availability, competencies and behaviours.

Types of Rewards :– 1. Membership and seniority-based rewards :– Benefits an employee receives depend on firm

which he or she joins. An MBA taking up a job in Wipro or Infosys gets more benefits than the boy or

girls who joins a state government undertaking. In the same firm, a senior employee receives more

benefits than his or her junior employee. Advancement, pay raises, retirement benefits and perquisites

depend on seniority of an employee. 2. Job Status-based Rewards :– Every firm rewards employees for the status of the jobs they are

holding. Firms use job evaluation system, which helps establish differentials in status of jobs. Status

differentials are used as the basis for establishing salary/wages differentials. Jobs that require more

skill and effort have more responsibility and have difficulty working conditions would have more

value and consequently would be place in higher pay grades. Firms that do not use job evaluation

system still reward job status based on pay survey information about the labour market. A supervisor will receive higher rewards than a purchasing assistant as the job of the former enjoys

better status than a later. It has move value to the organisation (calculated by the job evaluation

system or pay survey) and therefore employees in that job receive more status-based rewards in the

orgn. High status jobholders are also rewarded with more perquisites. This incentive programme

usually provides monetary rewards, but may also include a variety of non-monetary rewards or prizes.

Features of incentive plan :– a. These incentive plans usually consist of both monetary and non- monetary elements.

b. The timing, accuracy and frequency of incentives are the basis of a successful incentive plans. c. These plans should be properly communicated to employees. So this will encourage individual performance, provide feedback and encourage redirection.

TYPES OF REWARDS/INCENTIVES The Rewards are classified into two :–

a. Direct compensation b. Indirect compensation

Direct Compensation :– It includes the basic salary or wage that the individual is entitled for his job; this include overtime work, holiday premium, bonuses based on performance etc Indirect Compensation :– It includes protection programmes; pay for time not worked, services and perquisites. But these are maintenance factors rather than reward. Incentive (Structure of incentives)

INTRENSIC EXTRINSIC

Participation in Direct Indirect Non Financial

Decision Making Compensation Compensation Compensation

Greater job freedom Basic wage or Protection Preferred

and direction salary Programme furniture

More responsibility Overtime and Pay for time not Preferred

holiday worked Lunch hours

premiums

More interest in Performance Services Assigned parking

Work sharing perquisities space

Opportunities Stock option Business cards

personal work

Diversity of activities Own secretary

TRADE UNION Trade Union means a combination formed for the purpose of regulating the relations not only between

workmen and employers but also between workmen and workmen or between employers and

employers. - Trade Union Act 1926 WHAT IS TRADE UNION A trade union is an organized group of workers. Its main goal is to protect and advance the interests of its members A union often negotiates agreements with employers on pay and conditions. It may also provide legal and financial advice, sickness benefits and education facilities to its members Trade unions aim to represent the interests of people at work and negotiate with employers for better terms and conditions for their members HISTORY OF TRADE UNION The first trade union was started in 1877 in Nagpur It was this labour protest on an organized scale, through the support of some philanthropic personalities, that organized labour unions came to be formed The setting up of large-scale industrial units, created conditions of widespread use of machinery, new

lines of production, and brought about changes in working and living environment of workers, and

concentration of industries in large towns The first Factory‟s Act was passed in 1881 by N.M. Lokhode In 1919 Madras Labour Union was the first Union in India to be formed and established by B. P. Vadia Bombay Trade Union formed in 1975 under the leadership of Sorabjee Shapurjee Bengatee PROCEDURE OF REGISTRATION OF TRADE UNION At least 7 members should be present for an application It should in a prescribed form ,fees and should be registered under the Registrar of Trade Unions Should be accompanied by a copy of the Rules of TU Certificate of Registration is issued as soon as TU has been duely registered under the Act FUNCTION OF TRADE UNION a) To secure for workers better wages b) To safeguard security of tenure and improve conditions of service c) To increase opportunities for promotion and training d) To improve working and living condition e) To provide for educational cultural and recreational facilities f) To promote identity of interests of the workers g) To offer improved level of production and productivity discipline and high standard of quality h) To promote individual and collective welfare

WHAT IS TRADE UNION MOVEMENT a) The trade union movement started after 1918, when the workers formed their associations to

improve their conditions. It is, thus, a part of the „labour movement‟, which is a much wide term b) A trade union is an essential basis of a labour movement for without which one cannot exist,

because trade unions are the principal schools in which the workers learn the lesson of

self-reliance and solidarity

c) Trade Unionism in India has been the natural out come of the modern factory system d) The main elements in the development of trade unions of workers in every country have been

more or less the same e) The development of trade unionism in India has had a checkered history and a stormy career TRADE UNION MOVEMENT GROWTH

Social Welfare Period (1875-1918) The development of industries led to large-scale production on the one hand and social evils like

employment and exploitation of women and child labour and the deplorable workable conditions, the

government‟s attitude of complete indifference in respect of protection of labour from such evils, on

the other. Early Trade Union Period(1918-1924) The year 1918 was an important one for the Indian trade union movement. The industrial unrest that grew up as a result of grave economic difficulties created by war. The rising

cost of living prompted the workers to demand reasonable wages for which purpose they united to

take resort to collective action. Left-Wing Unionism Period (1924-1934) In 1924, a violent and long-drawn-out strike by unions led to the arrest, prosecution, conviction and

imprisonment of many communist leaders. The rapid growth of the trade unionism was facilitated by

several factors Trade Union’s Unity Period (1935-1938) In mid-thirties the state of divided labour movement was natural thought undesirable and soon after

the first split, attempts at trade union unity began to be made through the efforts of the Roy Group on

the basis of „a platform of unity‟. Second World War Period (1939-1945) The Second World War, which broke out in September 1939, created new strains in the united trade union movement. Hence, again a rift took place in 1941 and the Radicals left the AITUC with nearly 200 unions with a

membership of 3, 00,000 and formed a new central federation known as the Indian Federation of

Labour The Post-Independence Period (From 1947 to-date) As pointed out earlier, when attempts to restructure the AITUC failed, those believing in the aims and

ideals other than those of the AITUC separated from the organization and established the Indian

National Trade Union Congress (INTUC) in May, 1947 Principles of Trade Union a) Unity is strength: b) Equal pay for equal work or for the same job. c) Security of service. Why Employees join trade union : The important forces that make the employees join a union are 1. Dissatisfaction 2. Greater Bargaining Power 3. Minimize Discrimination 4. Sense of Security

5. Sense of Belongingness 6. Platform for self expression 7. Betterment of relationships Objectives of Trade Union : Representation: Trade Unions represent individual workers when they have problem at work.

Negotiation: Trade union negotiate with the employers to find the solution to the difference of

opinion between management and union members. Voice in decisions affecting workers : By Trade union workers can have their voice in the decision making by management to safeguard their interest. Member services: a) Education and training : Most unions runs training course for their members on employment

rights, health & safety. b) Legal assistance : Offering legal advice on employment issues. c) Financial discounts : people can get discounts on mortgages, insurance, loans from unions d) Welfare benefits: Unions offer financial help to their members when they are sick or

unemployed. Functions of Trade Union : Militant Functions: When union adopt an approach to fight with management in the form of go-slow tactics, strike, boycott, etc. These functions of trade unions are known as militant functions. a. To achieve higher wages and better working conditions. b. To raise status of workers as a part of industry. c. To protect labors against victimization and injustice. Fraternal Functions: TU tries to foster a spirit of co-operation and diffuse education and culture among their members. This activity may called as fraternal functions a. To take up welfare measures for improving the morale of workers. b. To generate self confidence among workers. c. To provide Opportunities for promotion and growth. d. To provide women workers against discrimination.

Weakness of Trade Unions : Nature of Industrial Labor: Indian industrial labor are largely from agrarian background, most of illiterate and do not understand properly the problems confront them. Leadership Issue: Due to political and outside leadership the unions generally forget their basic obligations. i.e Employee welfare. Multiplicity of Unions: Due to more small size unions it encourages inter & intra union rivalry at the industry and plant level. Financial Constraints: The multiplicity of unions results in low membership, due to which the finance of union proportionately decreases by division of union. Low Bargaining Power: Limited number of members and opposition from rival unions make the bargaining power of unions quite weak. Growth and Outlook: Nomadic character and illiteracy have made growth of unions uneven and outlook of majority of unions members are interested in Bread n Butter. Overcoming Weakness of Trade Unions : a) Internal and Responsible Leadership b) Stress on One Union Only c) Developing a Culture of Industrial Harmony d) Self-Discipline e) Elimination of Unhealthy Political Influence f) Improving Usefulness and Activities of Unions g) Essentials of successful trade Union : h) Should be an enlightened one, so that it may be able to guide and direct the trade union movement

properly. i) Should have a solid foundation. j) Should be run by the members for the members. k) Should have honesty and integrity of purpose.

Q. How & why workers participate in a management? Ans. Workers’ Participation in Management The managers, workers and industrial relations experts interpret the term “workers‟ participation in

management” in different ways. Workers‟ participation in management means giving scope for

workers to influence the managerial decision-making process at different levels by various forms in

the organisation. The principal forms of workers‟ participation are information sharing, joint

consultation, suggestion schemes, etc. Scope :– 1. InformationSharing :– The management ultimately takes the decision. Workers are given an

opportunity to influence decisions, they play a passive role in the process of decision-making, but

have no final say in the matter. 2. Sharing Decision-Making :– This school holds that participation of an individual in something

occurs when he actively takes part. The focus here is that there must exist taking part actively

Workers sit with the representatives of management to take important decisions particularly on

matters affecting the workers. Workers may be members of Works Committees, Joint Management

Council, etc. along with the representatives of management. The decisions are taken through

mutual discussions between the representatives of the workers and those of the management. 3. Self-

control :– The essential feature of self-control (or management) is that management and workers are

not visualised as two distinct groups but as active members with equal voting rights. Participation in

Yugoslavia is an example of self-control. Significance of Workers‟ Participation The need of workers‟ participation is felt because of the following reasons :– 1. Higher Productivity :– The increased productivity is possible only when there exists fullest co-operation between labour and management. It has been found that poor labour management

relations do not encourage the workers to contribute anything more than the minimum desirable to

retain their jobs. Thus participation of workers in management is essential to increase industrial

productivity. 2. Greater Commitment :– An important prerequisite for forging greater individual commitment is

the individual‟s involvement and opportunity to express himself. Participation allows individuals to

express themselves at the work place rather than being absorbed into a complex system of rules,

procedures and systems. If an individual knows that he can express his opinion and ideas, a personal

sense of gratification and involvement takes place within him. 3. Reduced Industrial Unrest :– Industrial conflict is a struggle between two organised groups,

which are motivated by the belief that their respective interests are endangered by the self-interested

behaviour of the other. Participation cuts at the very root of industrial conflict. It tries to remove or at

least minimise the diverse and conflicting interests between the parties, by substituting it with

cooperation, homogeneity and common interests. Both sides are integrated and decision arrived are

mutual rather than individual. 4. Improved Decisions :– Because of the existence of barriers to the upward flow of information in most enterprises, much valuable information possessed by subordinates never reaches their managers.

Participation tends to break down the barriers, and makes the information available to managers. To

the extent such information alters the decisions, the quality of decisions is improved. 5. Human Resource Development :– Participation provides education to workers in the management

of industry. It fosters initiative and creativity among them. It develops a sense of responsibility.

Informal leaders get an opportunity to reinforce their position and status by playing an active role in

decision-making and by inducing the members of the group to abide by them. 6. Reduced Resistance to Change :- It should be noted that changes are randomly introduced from

above without explanation. Subordinates tend to feel insecure and take counter measures aimed at

sabotage of changes. But when they have participated in the decision making process, they have had

an opportunity to be heard. They know what to expect and why. Their resistance to change is

reduced.

What is employee Grievance? Explain its forms. Explain the procedure of Grievance. Ans. Definition :– According to Michael Jucius, “ A grievance can be any discontent or

dissatisfaction, whether expressed or not, whether valid or not, and arising out of anything connected

with the company that an employee thinks, believes, or even feels as unfair, unjust, or inequitable.” A grievance means any discontentment or dissatisfaction in an employee arising out of anything related to the enterprise where he is working. It may not be expressed and even may not be valid. It arises when an employee feels that something has happened or is going to happen which is unfair,

unjust or inequitable Thus, a grievance represents a situation in which an employee feels that

something unfavourable to him has happened or is going to happen. In an industrial enterprise, an

employee may have grievance because of long hours of work, non-fulfillment of terms of service by

the management, unfair treatment in promotion, poor working facilities, etc. A grievance may take any of the following forms :– Ø Factual, Ø Imaginary, Ø Disguised. Factual :– When an employee is dissatisfied with his job, for genuine or factual reasons like a breach

of terms of employment or any other reasons that are clearly attributed to the management, he is said

to have a factual grievance. Imaginary :– When an employee‟s grievance or dissatisfaction is not because of any factual or valid

reason but because of wrong perception, wrong attitude or wrong information he has. Such a

grievance is called an imaginary grievance.So be careful your grievances could be very much

imaginary! Disguised :– An employee may have dissatisfaction for reasons that are unknown to himself. This

may be because of pressures and frustrations that an employee is feeling from other sources like his

personal life. Forms of Grievances a) Factual b) Imaginary c) Disguised A manager can know about the problems even before they turn into actual grievances through several means such as: Ø Exit interviews Ø Suggestions boxes Ø Opinion surveys Ø Open door policy. (a) Exit interview :– Employees usually quit organizations due to dissatisfaction or better prospects

elsewhere. Exit interviews, if conducted carefully, can provide important information about

employees‟ grievances. This can help the management to gather feedback and to genuinely

incorporate feedback. The management should carefully act upon the information drawn from such

employees .It should be careful that the discontentment is reduced so that no more employees quit the

organization because of similar reasons. (b) Gripe Boxes :– These are boxes in which the employees can drop their anonymous complaints.

They are different from the suggestion boxes in which employees drop their named suggestion with an

intention to receive rewards It is normally said that if you want to progress in life, you should be close

to critics. (c) Opinion Survey :– The management can be proactive by conducting group meetings, periodical

interviews with employees, collective bargaining sessions etc. through which one can get information

about employees‟ dissatisfaction before it turns into a grievance. (d) Open-door Policy :– Some organisation extend a general invitation to their employees to

informally drop in the manager‟s room any time and talk over their grievances. Summarising the identification of grievances. i. Identifying Grievances ii. Exit Interview iii. Gripe Boxes iv. Opinion Surveys v. Open door policy Causes of grievances :– The causes of grievances may be broadly classified into the following categories: (1) Grievances resulting from working conditions (i) Improper matching of the worker with the job. (ii) Changes in schedules or procedures. (iii) Non-availability of proper tools, machines and equipment for doing the job. (iv) Unreasonably high production standards. (v) Poor working conditions. (vi) Bad employer – employee relationship, etc. (2) Grievances resulting from management policy (i) Wage payment and job rates. (ii) Leave. (iii) Overtime. (iv) Seniority and Promotional. (v) Transfer. (vi) Disciplinary action. (vii) Lack of employee development plan. (viii) Lack of role clarity. (3) Grievances resulting from personal maladjustment (i) Over – ambition. (ii) Excessive self-esteem or what we better know as ego. (iii) Impractical attitude to life etc.

Effects of Grievances :– 1. Frustration 2. Alienation 3. Demotivation 4. Slackness 5. Low Productivity 6. Increase in Wastage & Costs 7. Absenteeism 8. In discipline 9. Labour unrest A grievance procedure :–

It is advisable to set up an effective grievance procedure in the organization. The procedure

should be flexible enough to meet the requirements of the organization. It should be simple so that an

average employee is able to understand it. Though such a procedure will vary in different

organizations, yet the following principles should be observed while laying down a procedure: (1) A grievance should be dealt with in the first instance at the lowest level: that is, an employee

should raise his grievance with his immediate superior. It may be simple to settle it on the spot and

that will be the end of it. Even if it cannot be settled at that level, the man‟s superior will know what

is happening. This is necessary not only to maintain his authority, but also to prevent him from being

aggrieved, as he will certainly be, if he is by-passed and hears of the complaint from his own superior.

(2)It must be made clear to the employee what line of appeal is available. If he cannot get satisfaction

from his immediate superior, he should know the next higher authority to which he can go. (3) Since delay causes frustration and tempers may rise and rumours spread around the work, it is

essential that grievances should be dealt with speedily. As it is said that a stitch in time saves nine,

similarly the problems of the employees should be taken care of by the management least it should

become a major for the management. (4) The grievance procedure should be set up with the participation of the employees and it should be

applicable to all in the organisation. The policies and rules regarding grievances should be laid down

after taking inputs from the employees and it should be uniformly applicable to all in the organisation.

It should be agreed that there would be no recourse to the official machinery of conciliation unless the procedure has been carried out and there is still dissatisfaction, and moreover, there must be no direct

action on either side, which might prejudice the case or raise tempers while the grievance is being

investigated.

Open door policy :– As the name suggests, the management keeps its doors open for the employees to share their

problems. It is said that this policy can remove the cause of grievance quickly. Though this policy

appears to the attractive, it has some prerequisites. The open door policy is workable only in small organizations. In big organizations, the top

management does not have the time to attend to innumerable routine grievances daily that is the work

of lower-level mangers. Under this policy, the front-line supervisor who should be the first man to know about the grievances

of his subordinates is by passed. This provokes him in two ways. First, he thinks the man who skipped

him is disrespectful. Secondly, he fears that he will incur his superior‟s displeasure because of his

failure to handle his subordinates will interpret this. Step-Ladder Procedure :– Under the step-ladder procedure, the employee with a grievance has to proceed step by step unless he

is able to redress his grievance. According to the Model Grievance Procedure, an aggrieved employee

shall first present his grievance verbally in person to the officer designated by the management for this

purpose. An answer shall be given within 48 hours. If he is dissatisfied with the answer, the worker

will present his grievance to the head of the department, who will give his answer within 3 days. If the

worker is dissatisfied with the answer, he may ask that his grievance should be referred to the

Grievance Committee, which shall make its recommendations within 7 days to the manger. The

management must implement common recommendations of this committee. A dissatisfied worker can

apply to the management for a revision of its decision within on week‟s time. Let us summarise the procedure in the form of a diagram. Step No. 1 Filling of Written Grievance Step No. 2 Supervisor or Foreman

Step No. 3 Head of Department

Step No. 4 Joint Grievance Committee

Step No. 5 Chief Executive

Last Step Voluntary Arbitration SETTELEMENT Step - ladder Grivevance Procedure. MODEL GRIEVANCE PROCEDURE

ESSENTIALS OF A GRIEVANCE PROCEDURE :– A grievance procedure should incorporate the following features :– 1. Conformity with existing legislation :– The procedure should be designed in conformity with the

existing statutory provisions. Where practicable, the procedure can make use of such machinery as the

law might have already provided for. 2. Acceptability :– Everybody must accept the grievance procedure. In order to be generally acceptable, it must ensure the following: Ø A sense of fair-play and justice to the worker, Ø Reasonable exercise of authority to the manager, and Ø Adequate participation of the union. 3 Simplicity :– The following points should be noted in this regard: Ø The procedure should be simple enough to be understood by every employee. Ø The steps should be as few as possible. Ø Channels for handling grievances should be carefully developed. Ø Employees must know the authorities to be contacted at various levels. Ø Information about the procedure should be thoroughly disseminated among all employees through pictures, charts, diagrams, etc.

4. Promptness :– Speedy settlement of a grievance is the cornerstone of a sound personnel policy. It should be remembered that justice delayed is justice denied. The procedure should aim at a

rapid disposal of the grievance. This can be achieved by incorporating the following feature in the

procedure :– (a) As far as possible, grievances should be settled at the lowest level (b) No matter should ordinarily be taken up at more than two levels, i.e. normally

there should be only one appeal. (c) Different types of grievances may be referred to appropriate authorities. (d) Time limit should be placed at each step and it should be rigidly followed at

each level. 5. Training :– In order to ensure effective working of the grievance procedure, it is necessary that

supervisors and the union representatives should be given training in working of the grievance

procedure. All the policies should be conveyed to the concerned parties. 6. Follow-up :– The personnel department should review the working of the grievance procedure

periodically and necessary changes should be introduced to make it more effective. This is generally

ignored by the organizations. A regular follow up of the system increase the faith of the people in the

system. Therefore it is necessary that the grievance procedure should be reviewed whenever it is so

required.

COLLECTIVE BARGAINING

INTRODUCTION The phrase „Collective bargaining‟ is coined by Sydney & Beatrice Webb. According to them

collective bargaining is a method by which trade unions protect & improve the conditions of their

members‟ working lives. Before the Industrial Revolution, the employer, more or less, enjoyed unquestioned powers on matters

relating to wage, working conditions & other matters affecting employees. The week bargaining

strength of employees tempted them, on occasions, to exploit the vulnerable situation to their

advantage. Workers as a result became restless & widespread protests followed. Governmental

intervention was of little help. Workers realized the importance of fighting jointly on all work-related

matters. This collective fighting spirit is behind the back of collective bargaining. With the growth of

union movement all over the globe & the emergence of employers‟ associations, the collective

bargaining process has undergone significant changes. Both parties have, more or less, realized the

importance of peaceful co-existence for their mutual benefit & continued progress.

OBJECTIVES The main objectives of Collective bargaining are given below: To settle disputes / conflicts relating to wages & working conditions.

To protect the interests of workers through collective plan.

To resolve the differences between workers & management though voluntary negotiations & arrive at a customer.

To avoid third party intervention in matters relating to employment.

Functions of Collective Bargaining Collective bargaining plays an important role in preventing industrial disputes, setting these disputes & maintaining industrial peace by performing the following functions: Increase the economic strength of employees & management.

Establish uniform conditions of employment.

Secure a prompt & fair redressal of grievances.

Lay down fair rates of wages & other norms of working conditions.

Achieve an efficient functioning of the organization.

Promote the stability & prosperity of the company.

It provides a method of the regulation of the conditions of employment of those who are directly concerned about them.

It provides a solution to the problem of sickness in the industry & ensures old age pension benefits & other fringe benefits.

It builds up a system of industrial jurisprudence by introducing civil rights I the industry. In other words, it ensures that the management is conducted by rules rather than by arbitrary decisions.

COLLECTIVE BARGAINING PROCESS

There are two stages in collective bargaining, viz., (i) the negotiation stage & (ii) the stage of contract administration. 1. Negotiation (a) Identification of Problems The nature of the problem influences the whole process-whether the problem is very important that is to be discussed immediately or it can be postponed for some other convenient time, whether the

problem is minor that it can be solved with the other party‟s acceptance on its presentation & does not need to involve the long process of collective bargaining process etc. (b) Preparing for Negotiations When it becomes necessary to solve the problem through collective bargaining process, both the parties prepare themselves for negotiations. (c) Negotiations of Agreement Usually there will be a chief negotiator who is form the management side. He directs

& presides over the process. The chief negotiator presents the problem, its intensity &

nature & the views of both parties. When a solution is reached at, it is put on the

paper, taking concerned legislations into consideration. Both parties concerned sign

the agreement which, in tern, become a binding contract for both the parties. 2. Contract Administration Implementation of the contract is as important as making a contract. Management

usually distributes the printed contract, its terms & conditions throughout the

organization. The union takes steps to see that all the workers understand the contract

& implement it. From time to time depending upon changing circumstances, both the

parties can make mutually acceptable amendments.

SUGGESTIONS FOR EFFECTIVE IMPLIMENTATION OF COLLECTIVE

BARGAINING Unions should be made strong by creating awareness among workers.

Interference of political leaders should be avoided. The unions should separate

themselves from politics.

Govt. should make efforts for the growth of collective bargaining. Adjudication should be used only as a last resort. Govt. can make legislation for compulsory collective bargaining before resorting to adjudication.

Management should develop a positive attitude toward unions. Much headway has already been made in this direction. Presently, managers are mostly aware of the rights of workers. They are also realizing how important cooperation between management & workers for the effective functioning of an organization. As such, they are now encouraging negotiations & amicable solutions.