HUMAN RESOURCE MANAGEMENT ( H R M )

UNIT-1
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.
5. To provide, create, utilize and motivate employees to accomplish
organizational goals.
6. To secure integration of individuals and groups in securing organizational
effectiveness.
7. To create opportunities, to provide facilities, necessary motivation to individuals
and groups for their growth with the growth of the organization by training
and development compensation.
8. To provide attractive, equitable, incentives, rewards, benefits, social security
measures, to ensure retention of competent employees.
9. To maintain high morale, encourage value system and create environment of
trust, mutuality of interests.
10.To provide opportunities for communication expression, participation,
appreciation, recognition and provide fair efficient leadership.
11.To create a sense and feeling of belongingness, team spirit and encourage
suggestions from employees.
12.To ensure that, there is no threat of unemployment, inequalities, adopting a
policy recognizing merit and employee contribution, and conditions for stability of
employment.

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.

Evolution of HRM
 Early Period
 Growth Period
 Maturity Period
 Transition Period

Early Period Before 1900

• Guild System
• Improving the working life of individuals were major concerns of reformers.
• Hiring, Firing, Training and Pay adjustment Decisions were made by individual
supervisors.
  Scientific Management studies conducted by Frederick W Taylor beginning of
1885 helped management to identify different ways of doing work and thus to
increase worker productivity.
• Industrial Revolution - 1870 working condition , social patterns , and
division of labor were significantly changed.
• Organization grew larger - Specialists - Planning , Recruitment , selection ,
placement and purchasing.

Growth Period between 1900 - 1946

• 1908 - unsafe working conditions & child labor - enactment of laws in
USA.
• 1910 - Growth of organization - led to establishment of the first personnel
department.
• 1910 - 1920 "Right Man in the Right Job" Placement theme.
• Frank and Lillian Gilberth dealt - task design and efficiency.
• Early 1920 - Employee Counseling, Paid Holiday, Vacations and Sick
Leave began.
• Mid 1920 - Elton Mayo conducted the Hawthorne studies - impact of work
groups on individual workers - job evaluation for determining hourly wage
rates were developed.
• 1930 - major Labor which led to growth of Unions.
• During the Second World War major developments were made in selection
and training methods.
• Between 1940 - 1950 - Importance of collective bargaining and union
management relations expanded the responsibilities.

Maturity between 1946 and 1970

 1946 - Employment Act (USA)
established.
 1950 - rapid growth in pension plans.
 1960 - 1970 - legal requirements and constraints arising from the social
legislation - changes in the HR department - policies and practices.
 Legal Ramifications - More professional.
 Revised selection and testing procedures and reassessed training
needs and criteria.
Transition 1970 till date

Responsibility of the every manager - management of human resources

• Human Resources as the valuable assets
• Shift from the management practices like two way communication - MBO,
Quality
• Circles , employee centered leadership- paved way to transform from the
personnel management to HRM.
• Welfare focus on the Efficiency.
• Computerization of HR activities receive more attention.

HRM IN INDIA:
In India, personnel management emerged because of the governmental

interventions and compulsions. In the beginning of the 20th Century, various

malpractices in the recruitment of workers and payment of wages were prevalent
which caused a colossal loss in production due to industrial disputes. The Royal
Commission of Labour in India (1931) under the Chairmanship of J. H. Whitley
recommended the abolition of the 'Jobber System' and the appointment of labour
officers in industrial enterprises to perform the recruitment function as well as to
look after the welfare of the employees.

After Independence, a labour welfare officer was identified as personnel

manager created by legislation under Factories Act, 1948. The role of a
personnel manager was more of a custodian of personnel policy implementation
and compliance to different acts of the Factories Act. Two professional bodies
were formed namely, Indian Institute of Personnel Management (IIPM) at
Kolkata and the National Institute of Labour Management (NILM) at Mumbai. In
1980s, these two professional bodies merged together and formed the National
Institute of Personnel Management (NIPM), headquartered at Kolkata. In the
year 1990, another milestone was achieved by renaming of American Society for
Personnel Administration (ASPA) as Society for Human Resource Management
(SHRM). Over the years, a new approach - the Human.

Resource Management - has emerged which focuses more on developmental

aspects of human resource with a pragmatic and flexible approach.
FUNCTIONS OF HRM
A. Managerial Functions:
Planning, Organizing, Directing , Controlling
B. Operative Functions:
Procurement functions, Development functions, Motivation & compensation,
Maintenance,
Integration, & Separation.
MANAGERIAL FUNCTIONS
• Planning -
• Planning is the determination of plans, strategies, programmes,
polices, procedures and standards needs to accomplish the desired
organizational objectives.
• Determine the personnel progress regarding recruitment, selection, &
training to achieve desired objectives.
• Two main features of Planning are Research and
Forecasting.
• Personnel administration should be able to predict the trends in
wages, labor market , union demands, and other benefits
• Organizing -
• Structure or framework by which cooperative group of human beings
allocates its tasks among its members.
• Design structure of relationships b/w jobs, personnel and physical
factors.

Organisation consist of authority and responsibility , it is the assignment

of specific functions to designated persons or departments with the
authority to carry the activities and accountability to the management.
• Directing -
• Getting people to do work willingly & effectively thro supervision and
guidance,
motivation & leadership.
• It is motivating, commanding, actuating
• Directing deals not with the dissemination of orders but also the
acceptance of the
and execution of these orders of employees
• Controlling & Cordinating -
 • It deals with the task of blending efforts in order to ensure a successful
attainment
of organisational objectives.
• Act of checking , regulating and verifying whether everything
occurs in
conformity with the plan.
• Ensure accomplishment of plans correctly- measure performance thro
review
reports, records etc.

OPERATIVE FUNCTIONS
1. Procurement Function - concerned with procuring & employing people with
required knowledge, skill and aptitude.
2. Development - Increase of skills, knowledge abilities
etc
3. Motivation & compensation - inspire people to give best-through incentives &
rewards
4. Integration - of goals through programmes, redressal, negotiations.
5. Maintenance - protecting & preserving physical and psychological health of
employees
6. Separation.

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 success 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.

STRATEGIC HUMAN RESOURCE MANAGEMENT: -

Strategy:
“Strategy is a way of doing something. It includes the formulation of goals and set
of action plans for accomplishment of that goal.”

Strategic Management:
“A Process of formulating, implementing and evaluating business strategies to
achieve organizational objectives is called Strategic Management”
Definition of Strategic Management: -

“Strategic Management is that set of managerial decisions and actions that

determine the long-term performance of a corporation. It includes environmental
scanning, strategy formulation, strategy implementation and evaluation and
control.”

The study of strategic management therefore emphasizes monitoring and evaluating

environmental opportunities and threats in the light of a corporation’s strengths and
weaknesses.

Steps in Strategic Management:

1. Environmental Scanning: Analyze the Opportunities and Threats in

External Environment
2. Strategy Formulation: Formulate Strategies to match Strengths and
Weaknesses. It can be done at Corporate level, Business Unit Level and Functional
Level.
3. Strategy Implementation: Implement the Strategies
4. Evaluation & Control: Ensure the organizational objectives are met.

IMPORTANCE & BENEFITS OF STRATEGIC MANAGEMENT

 Allows identification, prioritization and exploration of opportunities.

 Provides an objective view of management problems.
 Represents framework for improved co-ordination and control
 Minimizes the effects of adverse conditions and changes
 Allows major decisions to better support established objectives
 Allows more effective allocation of time and resources
 Allows fewer resources and lesser time devoted to correcting ad hoc decisions
 Creates framework for internal communication
 Helps to integrate the individual behaviors
 Provides basis for the clarification of responsibilities
 Encourages forward thinking
 Encourages favorable attitude towards change.
ROLE OF HRM IN STRATEGIC MANAGEMENT

Role in Strategy Formulation: HRM is in a unique position to supply competitive

intelligence that may be useful in strategy formulation. Details regarding advanced
incentive plans used by competitors, opinion survey data from employees, elicit
information about customer complaints, information about pending legislation etc.
can be provided by HRM. Unique HR capabilities serve as a driving force in strategy
formulation.

Role in Strategy Implementation: HRM supplies the company with a competent

and willing workforce for executing strategies. It is important to remember that
linking strategy and HRM effectively requires more than selection from a series of
practice choices. The challenge is to develop a configuration of HR practice choices
that help implement the organization’s strategy and enhance its competitiveness.
HUMAN RESOURCE DEVELOPMENT

Definition 1: Organizing and enhancing capacities to produce.

HRD is a process of organizing and enhancing the physical, mental and emotional
capacities of individuals for productive work.

Definition 2: Bring possibility of performance and growth

HRD means to bring about the possibility of performance improvement and

individual growth.

Human resource development is a process to help people to acquire competencies

and to increase their knowledge, skills and capabilities for better performance and
higher productivity.

Proactive HRD Strategies for long term planning and growth

In today’s fast changing, challenging and competitive environment HRD has to take
a proactive approach that is to seek preventive care in human relations. Using HRD
strategies maximizations of efficiency and productivity could be achieved through
qualitative growth of people with capabilities and potentialities to grow and develop.
HRD is always a function of proper utilization of creative opportunities and available
environment through acquisition of knowledge, skills and attitudes necessary for
productive efforts.

Long-term growth can also be planned by creating highly inspired groups of

employees with high aspirations to diversify around core competencies and to build
new organizational responses for coping with change.

A proactive HRD strategy can implement activities that are geared up and directed
at improving personal competence and productive potentialities of human
resources.

Following strategic choices can be considered which would help today’s

organizations to survive and grow.

Change Management: Manage change properly and become an effective change

agent rather than being a victim of change itself.
Values: Adopt proactive HRD measures, which encourage values of openness,
trust, autonomy, proactivity and experimentation.
Maximize productivity and efficiency: Through qualitative growth of people with
capabilities and potentialities to grow and develop thrive to maximize productivity
and efficiency of the organization.
Activities directed to competence building: HRD activities need to be geared up
and directed at improving personal competence and productive potentialities of
manpower resources.

TEAM EFFECTIVENESS

What is the definition of a team? A team is defined as a reasonably small group

of people, who bring to the table a set of complementary and appropriate skills, and
who hold themselves mutually accountable for achieving a clear and identifiable set
of goals.
Teams can be very effective. In many situations teams can achieve more than
individuals working on their own. Teams can bring to bear a wider range of skills
and experience to solve a problem. Teams also produce better quality decisions.
When a team has been working on a problem, and they have a sense of
commitment to the common solution

What do we mean by team effectiveness?

 A team can be considered to be effective if their output is judged to meet or
exceed the expectations of the people who receive the output. Producing a quality
output is not enough to judge the effectiveness of the team.
 The second criteria, is that the team should still be able function effectively after
they have completed their task. It should not be torn apart by dissension.
 Finally, effectiveness is judged by whether the team feels satisfied with its
efforts. If the team members are pleased with their efforts, if the experience has
been a good one, if time spent away from their normal work has been worth the
effort, the team has likely been effective.

What then are the factors that contribute towards an effective team?

There are three areas of group behavior that must be addressed for teams to be
effective. The team must work hard. The effort that the team puts in to get the job
done is dependent on whether the nature of the task motivates the members of the
team and whether the goals are challenging.The team must have the right mix of
skills to bring to the table. These skills include technical, problem solving and
interpersonal skills. The team must be able to develop appropriate approaches to
problem solving. This depends on developing a plan of attack and using appropriate
techniques for analysis.

The following factors contribute to hard work, skill development and effective
problem solving strategies:

The task itself should be motivating.

 The task itself should be seen as being worthwhile. It needs to be a whole piece
of work with a clear and visible outcome so that people can feel a sense of
ownership.
 The outcome of the task should be perceived as being important to other
people's lives. It should affect others in the organization or impact on the external
customer.
 The job should provide the team with an opportunity for self-regulation. They
should decide how the work is to be done. Meaningful feedback should be provided
on the how well the team is performing.

The team needs challenging goals, which are clearly defined.

 When challenging goals are set the team will mobilize its efforts to find
innovative ways to achieve feats that may have been considered impossible.
Providing a challenging job is the most important motivator to sustain group effort.
 Goals provide a sense of direction to the team so that when conflict occurs it is
possible to channel the conflict more constructively by returning to the goals for
direction.
 The team needs to buy in to the goals. They must have the opportunity to buy
in and commit to achieving the goals. Goals need to be challenging, but not
impossible to achieve. They also need to be measurable so that progress towards
achieving them can be monitored and results confirmed.

Rewards are important.

 The rewards need to suit the personal characteristics of the people on the team.
 Whatever form the reward takes, it is important that group effort be recognized.
One should avoid the destructive effect of trying to single out individuals from
the group, when there has been a group effort.
 Rewards merely reinforce these conditions for fostering group effort.

The team should have the right mix of skills.

 The right mix of skills should be brought to the task at hand. It is also a
question of carefully reviewing the job to determine what relevant skills is required
and selecting staff so that the team has the right balance. Providing relevant
training then makes up any shortfall in skills.
 Technical skills are required. For teams who are trying to improve a process that
cuts across department boundaries, each function should be represented. One
should achieve a balance of skills. This means avoiding having a preponderance of
skills and experience in one specialized area. Sheer numbers may weigh the
solution towards the dominant group.
 In the case of permanent work teams it is likely that team members will not
have all the task relevant skills at the onset. When the group is new, it is likely that
members will bring narrow skills learned in their old roles. They will need to develop
broader skills for the new job. To ensure that this is done, training and coaching
should be provided.
 The members of the team need to have problem solving and decision-making
skills as well as technical skills. When a business is making its first venture into
team based work, it is likely that people will not have a good grasp of the
techniques related to problem analysis and solution.
 These relevant skills must be acquired, so it will be necessary to provide
training. Over a period of time staff will become experienced in problem solving
techniques and the organization will develop a repertoire of skills among the staff so
this training will not always be necessary.
 Interpersonal skills are also important. This is not as obvious as it may sound.
Most people do not listen well. Listening is much more than being quiet when some
else is talking. Active listening is required. Many people do not speak to the point
but ramble on or go off at a tangent. Most people do not take criticism well and
tend to be defensive about their own opinions.

Agree on a code of conduct.

 At the beginning of the team project it is important to develop a code of conduct
for meetings. The team needs to agree on a set of rules to ensure that their efforts
are purposeful and that all members contribute to the work.
 The most critical rules pertain to attendance, open discussion, using an
analytical approach, not pulling rank over other members, planning the work and
sharing work assignments. This will ensure that the work is done well and done on
time.

The team must develop effective problem solving strategies.

 For the team to be able to develop an appropriate strategy, it must have a clear
definition of the problem, know what resources it has available and the limits, and
understand the expectations. It must then develop a problem-solving plan, based
on the approach suggested in the section on continuous improvement.
 When this does not happen, people are passive. Their skills and knowledge are
not utilized and they waste their time.

Special teams have special issues.

 From the perspective of organisational improvement we are interested in three

types of teams. One is the problem solving team, another is the work team and
then there is the senior management team.
 Problem solving teams are set up with a clearly defined task to investigate a
problem and recommend a solution. Sometimes the same team will go on to
implement the solution. When their task is completed the team is disbanded and
members go back to their normal organisational duties.
 There are two important issues facing these teams. One is getting started and
the other is handing over the recommendations for implementation. The key to
getting started is to ensure that the team is committed to achieving an agreed set
of goals. Goals serve to focus the team's effort.
 Implementation is important. It will not just happen; it must be planned. The
implementers must be brought into the solution stage so that they develop a sense
of ownership towards the solution and buy into it. The best way to do this is to have
the problem solving team do the implementation.
 Another approach is to phase the implementers into the team so that the
membership changes prior to the implementation. Whatever approach is used one
should remember that the idea is to implement a solution and not to produce a
report.
 Work teams are different in that they are a fixed part of the organization. They
have an ongoing function, which is to control a set of activities that make up a
discrete operation in the overall business process. They need to focus on the critical
factors in their process and to control these factors to ensure a quality product.

QUALITIES OF A HR MANAGER:
 He should be a specialist in organisation theory.
 He should have knowledge of relevant laws, procedures, techniques and of
developments in theory.
 He should adequate knowledge of behavioral science.
 He should a mind with a capacity for creative thinking, for analyzing situations
and reasoning objectively.
 He should know problem-solving
techniques.
 He should have faith in humanity.
 He should have capacity for leadership.
 Personal Integrity.
 Capacity for persuasion, coupled with patience and
tolerance.
 A friendly, approachable nature.
 Initiative and decision-making ability.
 Mobility of facial expression.
 An ability to generate trust among his
colleagues.
 A readiness to cooperate with the subordinates in times of difficulty.
 Personnel Attributes: Initiative, resourcefulness, perception, maturity,
analytical ability, unbiased, thorough with labour laws, understanding of human
behaviour, Understanding, empathy, Perseverance.
 Skills: educational skills, discriminating skills, executing skills, leadership skills,
 Experience & training, Professional Attitudes - knowledge of various disciplines

HUMAN RESOURCE AUDIT

Nature of HR Audit
HR Audit is a tool for evaluating the personnel activities of an organization. The
audit may include one division or entire company. It gives feedback about HR
functions to operating managers and HR specialists. It also shows how well
managers are meeting HR duties.

In short HR audit is an overall control check on HR activities in a division or a

company and evaluation of how these activities support organization’s strategy.

Basis of HR Audit
(Personnel Research)

1. Wage Surveys
2. Recruitment Sources effectiveness
3. Training efforts effectiveness
4. Supervisor’s effectiveness
5. Industrial settlements
6. Job Analysis
7. Job Satisfaction Survey
8. Employee needs survey
9. Attitude Surveys
10.High accident frequency surveys

Benefits of HR Audit

1. Identification of contributions of HR department

2. Improvement of professional image of HR department
3. Encouragement of greater responsibility and professionalism among HR
members
4. Clarification of HR duties and responsibilities
5. Stimulation of uniformity of HR policies and practices
6. Finding critical personnel problems
7. Ensuring timely compliance with legal requirements
8. Reduction of HR costs through more effective personnel procedures
9. Creation of increased acceptance of changes in HR department
10.A thorough review of HR information systems
Scope and Types of HR Audit

HR Audit must cover the activities of the department and extend beyond because
the people problems are not confined to HR department alone. Based on this HR
audit can be spread across following four different categories.

 Human Resource Function Audit

 Managerial Compliance Audit
 Human Resource Climate Audit
Employee Turnover
Absenteeism
Accidents
Attitude Surveys
 HR - Corporate Strategy Audit

Approaches to HR Audit

1. Comparative Approach (Benchmarking with another company)

2. Outside Authority Approach (Outside consultants’ standards)
3. Statistical Approach (Statistical measures and tools)
4. Compliance Approach (Legal and company policies)
5. Management By Objectives Approach (Goals & Objectives based)

UNIT-2
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.

NEW TRENDS IN HUMAN RESOURCE MANAGEMENT

 Attitude Surveys
 Better Communication Channels
 Change in the Work-Life
 Job Redesign
 Job Enlargement
 New approaches to compensation and
rewards
 Career Planning
 Performance Appraisal
 Decentralization
 Breaking down the hierarchical structure
 Facilitating Empowerment
 Initiating and facilitating process of change
 Enlarging the knowledge base
 Developing team spirit
 Facilitating the employees desires of self-actualisation.
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 Job Analysis
specifications Job Incumbents
Equipment maintenance records Supervisors
Equipment design blueprints Job Experts
Architectural blueprints of work area
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 Position 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 analytical 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 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 EVALUATION

Job Evaluation involves determination of relative worth of each job for the purpose
of establishing wage and salary differentials. Relative worth is determined mainly on
the basis of job description and job specification only. Job Evaluation helps to
determine wages and salary grades for all jobs. Employees need to be compensated
depending on the grades of jobs which they occupy. Remuneration also involves
fringe benefits, bonus and other benefits. Clearly remuneration must be based on
the relative worth of each job. Ignoring this basic principle results in inequitable
compensation. A perception of inequity is a sure way of de-motivating an employee.

Job evaluation is a process of analyzing and assessing the various jobs

systematically to ascertain their relative worth in an organization.

Jobs are evaluated on the basis of content, placed in order of importance. This
establishes Job Hierarchies, which is a purpose of fixation of satisfactory wage
differentials among various jobs.

Jobs are ranked (not jobholders)

Scope of Job Evaluation

The job evaluation is done for the purpose of wage and salary differentials, demand
for and supply of labor, ability to pay, industrial parity, collective bargaining and the
like.

Process of Job Evaluation:

1. Defining objectives of job evaluation
i. Identify jobs to be evaluated (Benchmark jobs or all jobs)
ii. Who should evaluate job?
iii. What training do the evaluators need?
iv. How much time involved?
v. What are the criteria for evaluation?
vi. Methods of evaluation to be used
2. Wage Survey
3. Employee Classification
4. Establishing wage and salary differentials.
Methods of Job Evaluation

Analytical Methods

 Point Ranking Methods: Different factors are selected for different jobs with
accompanying differences in degrees and points.
 Factor Comparison Method: The important factors are selected which can be
assumed to be common to all jobs. Each of these factors are then ranked with other
jobs. The worth of the job is then taken by adding together all the point values.

Non-Analytical Methods

 Ranking Method: Jobs are ranked on the basis of its title or contents. Job is
not broken down into factors etc.
 Job Grading Method: It is based on the job as a whole and the differentiation
is made on the basis of job classes and grades. In this method it is important to
form a grade description to cover discernible differences in skills, responsibilities
and other characteristics.

Pitfalls of Job Evaluation:

 Encourages employees on how to advance in position when there may be

limited opportunities for enhancement as a result of downsizing.
 It promotes internal focus instead of customer orientation
 Not suitable for forward looking organizations, which has trimmed multiple job
titles into two or three broad jobs.

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. The job is broken down

into small parts and each part is assigned to an individual. 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. Work simplification is used
when jobs are not specialized.

Job Rotation: When incumbents become bore of routine jobs, job rotation is an
answer to it. Here jobs remain unchanged, but the incumbents shift from one job to
another. 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 Enlargement: It means expanding the number of tasks, or duties assigned

to a given job. Job enlargement is naturally opposite to work simplification. Adding
more tasks or duties to a job does not mean that new skills and abilities are
needed. There is only horizontal expansion. It is with same skills taking additional
responsibilities like extending working hours etc. Job enlargement may involve
breaking up of the existing work system and redesigning a new work system. For
this employees also need to be trained to adjust to the new system. Job
enlargement is said to contribute to employee motivation but the claim is not
validated in practice.

Benefits of Job Enlargement:

1. Task Variety
2. Meaningful Work Modules
3. Full Ability Utilization
4. Worker Paced Control
5. Meaningful Performance Feedback

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.

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.

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
WORK SAMPLING

Definition 1: Measuring and quantifying activities

"A measurement technique for the quantitative analysis of non-repetitive or

irregularly occurring activity."

Meaning of Work Sampling

Work sampling is based on the theory that the percentage of the number of
observations on a particular activity is a reliable measure of the percentage of the
total actual time spent on that activity.

Work sampling operates by an observer taking a series of random observations on a

particular "thing" of interest (machine, operating room, dock, etc.) to observe its
"state" (working, idle, sleeping, empty, etc.). When enough samples are taken, an
analysis of the observations yields a statistically valid indication of the states for
each thing analyzed.

Assume, for example, that you wish to determine the proportion of time a factory
operator is working or idle. Also assume that 200 random observations were made
of the operator and during 24 of these he or she was observed to be idle. Therefore,
you find that the individual is working 176/200 = 88% of the time.

Advantages of Work Sampling

It is relatively inexpensive to use and extremely helpful in providing a deeper

understanding of all types of operations.

When properly used, it can help pinpoint those areas, which should be analyzed in,
further detail and can serve as a measure of the progress being made in improving
operations.

Questions of work sampling study

 What is our equipment/asset utilization?

 When we are not adding value to the product, how are we spending our time?
 How are our inter-dependent systems performing?
 Where should we focus our continuous improvement activities?

Distinction between Work sampling and "Time Studies"

 Work sampling is lower cost because it uses random samples instead of

continuous observations.
 Many operators or machines can be studied by a single observer
 Work sampling can span several days or weeks, thus minimizing the effects of
day to day load or equipment variations
 Work Sampling tends to minimize operator behavior modification during
observation.
 Work Sampling, in general, does not require a trained time-study analyst to take
the observations. Also, stopwatches or other timing devices are not required.
Many studies make use of off-shift technicians or operators to take the
observations.

Work sampling Methodology

An analyst RANDOMLY observes an activity (equipment, operating room, production

line) and notes the particular states of the activity at each observation.
The ratio of the number of observations of a given state of the activity to the total
number of observations taken will approximate the percentage of time that the
activity is in that given state.

Note that random observations are very critical for a work sampling study. A brief
example might be that 77 of 100 observations showed a machine to be running. We
might then conclude, within certain statistical limits, that the equipment is
operational 77% of the time.

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: -

1. Determine the present and future requirements in conjunction with personnel

planning and job analysis activities
2. Increase the pool of job candidates at minimum cost
3. Help increase success rate of selection process by reducing number of under-
qualified or over-qualified applications.
4. Reduce the probability that job applicants once selected would leave shortly
5. Meet legal and social obligations
6. Identify and prepare potential job applicants
7. 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
1. Less Costly 1. Old concept of doing things
2. Candidates already oriented 2. It abets raiding
towards organization 3. Candidates current work may be
3. Organizations have better affected
knowledge about internal candidates 4. Politics play greater roles
4. Employee morale and motivation 5. Morale problem for those not
is enhanced promoted.

EXTERNAL RECRUITMENT
Advantages Disadvantages
1. Benefits of new skills and talents 1. Better morale and motivation
2. Benefits of new experiences associated with internal recruiting is
3. Compliance with reservation denied
policy becomes easy 2. It is costly method
4. Scope for resentment, jealousies, 3. Chances of creeping in false
and heartburn are avoided. positive and false negative errors
4. 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
1. Recruitment refers to the process 1. Selection is concerned with
of identifying and encouraging picking up the right candidates from
prospective employees to apply for a pool of applicants.
jobs. 2. Selection on the other hand is
2. Recruitment is said to be positive negative in its application in as much
in its approach as it seeks to attract as it seeks to eliminate as many
as many candidates as possible. unqualified applicants as possible in
order to identify the right candidates.

PROCESS / STEPS IN SELECTION

1. 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.
2. 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.
3. 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.
4. 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.
5. 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.
6. 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.
7. 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.
8. 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

1. Detailed job descriptions and job specifications prepared in advance and
endorsed by personnel and line management
2. Trained the selectors
3. Determine aids to be used for selection process
4. Check competence of recruitment consultants before retention
5. Involve line managers at all stages
6. Attempt to validate the procedure
7. Help the appointed candidate to succeed by training and management
development

BARRIERS TO EFFECTIVE SELECTION: -

1. Perception: We all perceive the world differently. Our limited perceptual
ability is obviously a stumbling block to the objective and rational selection of
people.
2. Fairness: Barriers of fairness includes discrimination against religion, region,
race or gender etc.
3. 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.
4. Reliability: A reliable test may fail to predict job performance with precision.
5. Pressure: Pressure brought on selectors by politicians, bureaucrats, relatives,
friends and peers to select particular candidate are also barriers to selection.

INDUCTION:
It is the process of inducting or orienting a new employee into the social setting
of his work.
Steps:
i) Familiarising the new employee with his new surroundings and company
rules & regulations.
ii) Integrating his personal goals with the organization goals.

SOCIALISATION:
• " long process of planned and unplanned, formal and informal and
experience through
which an individual acquires the attitudes, behaviours and knowledge
needed to
successfully participate as a member of an organisation and learns the firm's
culture."
• Mc Shane "is the process by which new comers learn the behaviours, values,
beliefs and
social knowledge to accept their new roles and function effectively within
the organisation"
• Robert Kreitner "organisational socialisation is the process of transforming
outsiders into accepted insiders”.
Assumptions of socialization:
i) It strongly influence employee performance and organizational
 stability.
ii) New member suffer from anxiety [Stress]- induced
stress.

Socialisation is the process of adaption. It is not confined to new recruits. It is

needed like
transfer, promotion. Induction is only a part of socialization. "Socialization can be
conceptualized as a process made up of the following phases:
• Pre arrival
- Acclimatize the new comers about the culture of the organisation
• Encounter
- Confront the reality

- Culture shock - Not done properly

- Feel suffocated and incline to quit
• Metamorphosis
- Problems from encounter stage
- Comfortable with the organisation
- System
- Rules
• Outcomes
- Productivity -
Commitment
- Turnover

Methods of socialisation
• Stories
• Rituals
• Material symbols
• Language

Socialisation benefits
• Helps in understanding organisation
culture
• Contributes to employee's long term success
• Helps in adjustment
 • Helps in employee engagement
• Provides job satisfaction

UNIT-3

TRAINING & DEVELOPMENT

Definition of Training & Development: Improve performance

“Training & Development 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 or her skills and
knowledge.”

MEANING OF TRAINING & DEVELOPMENT: -

The need for Training and Development is determined by the employee’s

performance deficiency, computed as follows.
Training & Development Need = Standard Performance – Actual Performance

We can make a distinction among Training, Development and Education.

Distinction between Training and Education

Training Education
Application oriented Theoretical Orientation
Job experience Classroom learning
Specific Task in mind Covers general concepts
Narrow Perspective Has Broad Perspective
Training is Job Specific Education is no bar

Training: Training refers to the process of imparting specific skills. An employee

undergoing training is presumed to have had some formal education. No training
program is complete without an element of education. Hence we can say that
Training is offered to operatives.

Education: It is a theoretical learning in classrooms. The purpose of education is to

teach theoretical concepts and develop a sense of reasoning and judgment. That
any training and development program must contain an element of education is well
understood by HR Specialists. Any such program has university professors as
resource persons to enlighten participants about theoretical knowledge of the topics
proposed to discuss. In fact organizations depute or encourage employees to do
courses on part time basis. CEOs are known to attend refresher courses conducted
by business schools. The education is more important for managers and executives
rather than low cadre workers. Anyways education is common to all employees,
their grades notwithstanding.

Development: Development means those learning opportunities designed to help

employees to grow. Development is not primarily skills oriented. Instead it provides
the general knowledge and attitudes, which will be helpful to employers in higher
positions. Efforts towards development often depend on personal drive and
ambition. Development activities such as those supplied by management
development programs are generally voluntary in nature. Development provides
knowledge about business environment, management principles and techniques,
human relations, specific industry analysis and the like is useful for better
management of a company.

Objectives of (MDP) Management Development Programs OR

Advantages of Development

1. Making them
 Self-starters
 Committed
 Motivated
 Result oriented
 Sensitive to environment
 Understand use of power
2. Creating self awareness
3. Develop inspiring leadership styles
4. Instill zest for excellence
5. Teach them about effective communication
6. To subordinate their functional loyalties to the interests of the organization

Difference between Training and Development

Training Development
Training is skills focused Development is creating learning
abilities
Training is presumed to have a Development is not education
formal education dependent
Training needs depend upon lack or Development depends on personal
deficiency in skills drive and ambition
Trainings are generally need based Development is voluntary
Training is a narrower concept Development is a broader concept
focused on job related skills focused on personality development
Training may not include Development includes training
development wherever necessary
Training is aimed at improving job Development aims at overall personal
related efficiency and performance effectiveness including job
efficiencies

What are the Training Inputs?

 Skills
 Education
 Development
 Ethics
 Problem Solving Skills
 Decision Making
 Attitudinal Changes

Importance of Training & Development

 Helps remove performance deficiencies in employees
 Greater stability, flexibility and capacity for growth in an organization
 Accidents, scraps and damages to machinery can be avoided
 Serves as effective source of recruitment
 It is an investment in HR with a promise of better returns in future
 Reduces dissatisfaction, absenteeism, complaints and turnover of employees

Need of Training
Individual level
 Diagnosis of present problems and future challenges
 Improve individual performance or fix up performance deficiency
 Improve skills or knowledge or any other problem
 To anticipate future skill-needs and prepare employee to handle more
challenging tasks
 To prepare for possible job transfers
Group level
 To face any change in organization strategy at group levels
 When new products and services are launched
 To avoid scraps and accident rates

Identification of Training Needs (Methods)

Individual Training Needs Identification

1. Performance Appraisals
2. Interviews
3. Questionnaires
4. Attitude Surveys
5. Training Progress Feedback
6. Work Sampling
7. Rating Scales
Group Level Training Needs Identification

1. Organizational Goals and Objectives

2. Personnel / Skills Inventories
3. Organizational Climate Indices
4. Efficiency Indices
5. Exit Interviews
6. MBO / Work Planning Systems
7. Quality Circles
8. Customer Satisfaction Survey
9. Analysis of Current and Anticipated Changes

Benefits of Training Needs Identification

1. Trainers can be informed about the broader needs in advance

2. Trainers Perception Gaps can be reduced between employees and their
supervisors
3. Trainers can design course inputs closer to the specific needs of the participants
4. Diagnosis of causes of performance deficiencies can be done

Methods of Training

On the Job Trainings: These methods are generally applied on the workplace
while employees is actually working. Following are the on-the-job methods.

Advantages of On-the-Job Training:

It is directly in the context of job
It is often informal
It is most effective because it is learning by experience
It is least expensive
Trainees are highly motivated
It is free from artificial classroom situations

Disadvantages of On-the-Job Training:

Trainer may not be experienced enough to train
It is not systematically organized
Poorly conducted programs may create safety hazards

On the Job Training Methods

1. Job Rotation: In this method, usually employees are put on different jobs
turn by turn where they learn all sorts of jobs of various departments. The objective
is to give a comprehensive awareness about the jobs of different departments.
Advantage – employee gets to know how his own and other departments also
function. Interdepartmental coordination can be improved, instills team spirit.
Disadvantage – It may become too much for an employee to learn. It is not focused
on employees own job responsibilities. Employees basic talents may remain under
utilized.
2. Job Coaching: An experienced employee can give a verbal presentation to
explain the nitty-gritty’s of the job.
3. Job Instruction: It may consist an instruction or directions to perform a
particular task or a function. It may be in the form of orders or steps to perform a
task.
4. Apprenticeships: Generally fresh graduates are put under the experienced
employee to learn the functions of job.
5. Internships and Assistantships: An intern or an assistants are recruited to
perform a specific time-bound jobs or projects during their education. It may consist
a part of their educational courses.

Off the Job Trainings: These are used away from work places while employees
are not working like classroom trainings, seminars etc. Following are the off-the-job
methods;
Advantages of Off-the-Job Training:
Trainers are usually experienced enough to train
It is systematically organized
Efficiently created programs may add lot of value
Disadvantages of Off-the-Job Training:
It is not directly in the context of job
It is often formal
It is not based on experience
It is least expensive
Trainees may not be highly motivated
It is more artificial in nature

Off the Job Training Methods

1. Classroom Lectures: It is a verbal lecture presentation by an instructor to a
large audience. Advantage – It can be used for large groups. Cost per trainee is low.
Disadvantages – Low popularity. It is not learning by practice. It is One-way
communication. No authentic feedback mechanism. Likely to boredom.
2. Audio-Visual: It can be done using Films, Televisions, Video, and
Presentations etc. Advantages – Wide range of realistic examples, quality control
possible,. Disadvantages – One-way communication, No feedback mechanism. No
flexibility for different audience.
3. Simulation: creating a real life situation for decision-making and
understanding the actual job conditions give it. Following are some of the simulation
methods of trainings
• Case Studies: It is a written description of an actual situation and trainer is
supposed to analyze and give his conclusions in writing. The cases are
generally based on actual organizational situations. It is an ideal method to
promote decision-making abilities within the constraints of limited data.
• Role Plays: Here trainees assume the part of the specific personalities in a
case study and enact it in front of the audience. It is more emotional
orientation and improves interpersonal relationships. Attitudinal change is
another result. These are generally used in MDP.
• Sensitivity Trainings: This is more from the point of view of behavioral
assessment, under different circumstances how an individual will behave
himself and towards others. There is no preplanned agenda and it is instant.
Advantages – increased ability to empathize, listening skills, openness,
tolerance, and conflict resolution skills. Disadvantage – Participants may
resort to their old habits after the training.
4. Programmed Instructions: Provided in the form of blocks either in book or
a teaching machine using questions and Feedbacks without the intervention of
trainer. Advantages – Self paced, trainees can progress at their own speed, strong
motivation for repeat learning, material is structured and self-contained.
Disadvantages – Scope for learning is less; cost of books, manuals or machinery is
expensive.
5. Computer Aided Instructions: It is extension of PI method, by using
computers. Advantages – Provides accountabilities, modifiable to technological
innovations, flexible to time. Disadvantages – High cost.
6. Laboratory Training

Barriers to Effective Training:

1. Lack of Management commitment
2. Inadequate Training budget
3. Education degrees lack skills
4. Large scale poaching of trained staff
5. Non-coordination from workers due to downsizing trends
6. Employers and B Schools operating distantly
7. Unions influence

How To Make Training Effective?

1. Management Commitment
2. Training & Business Strategies Integration
3. Comprehensive and Systematic Approach
4. Continuous and Ongoing approach
5. Promoting Learning as Fundamental Value
6. Creations of effective training evaluation system

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:

1. Daily Work Routine
2. Organization Profile
3. Importance of Jobs to the organization
4. Detailed Orientation Presentations

Purpose of Orientation
1. To make new employees feel at home in new environment
2. To remove their anxiety about new workplace
3. To remove their inadequacies about new peers
4. To remove worries about their job performance
5. To provide them job information, environment

Types of Orientation Programs

1. Formal or Informal
2. Individual or Group
3. Serial or Disjunctive

Prerequisites of Effective Orientation Program

1. Prepare for receiving new employee
2. Determine information new employee wants to know
3. Determine how to present information
4. Completion of Paperwork

Problems of Orientations
1. Busy or Untrained supervisor
2. Too much information
3. Overloaded with paperwork
4. Given menial tasks and discourage interests
5. Demanding tasks where failure chances are high
6. Employee thrown into action soon
7. 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.

CHANGE MANAGEMENT

Change vis-à-vis
Recruitment
Performance Appraisals

Meaning of Change:
Alterations in –People, Structure and Technology

External Forces of Change:

Marketplace
Labor markets
Economic Changes
Technology
Laws and Regulations

Internal Forces of Change

Corporate Strategies
Workplace
Technology and Equipments
Employee Attitudes

Change Agents: (Who can bring about change?)

Managers
External Consultants
Staff Specialists

Process of Change (Lewins steps)

Unfreezing
Changing
Refreezing

White water rapids metaphor

Lack of Stability
Lack of Predictability
Virtual Chaos
Constant Change

Resistance to Change
Uncertainty and Ambiguity
Personal Loss Concerns
Disbelief in Change benefits

Techniques of Reducing Resistance to Change

Education and Communication
Negotiation
Manipulation and Co-optation
Participation
Facilitation
Coercion
Change Management
Structural Changes Technological Changes People Changes
Authority Processes Attitudes
Coordination Methods Expectations
Centralization Equipments Behaviors
Organizational Development Techniques
Survey Feedback
Sensitivity Training
Process Consultation
Team Building
Inter-group Development

Conditions Facilitating Change

Dramatic Crisis
Leadership Change
Weak Culture
Young and Small Organization (ageing)

The Road to Change in Culture

Analyze the culture
Need for change
New leadership
Reorganize
Restructure
New stories and rituals
Change the job systems
TQM V/s. Reengineering

TQM (Total Quality Management) Re engineering

Continuous Change Radical and One time Change
Fixing and Improving Redesigning
Mostly focused on ‘As-Is’ Mostly focused on ‘what can be?’
Systems indispensable Top to Bottom
Bottom to Top

Managing Downsized Workforce

Open and honest communication
Assistance to them
Help for survivors of the downsized

Stress in Workplace
Opportunities stress
Demands stress
Constraints stress

How to reduce workplace stress

Employee selection
Organizational communication
Performance Planning
Job redesign especially when processes change, jobs merged, and relocation
happens
Employee counseling
Time management programs

What is creativity?
Combining new ideas in unique ways or associating ideas in unusual ways

What is innovation?
Turning creative ideas into useful products, services or methods of operations

3 Sets of variable simulate innovation

Structural Changes
Cultural Changes
Human Resources Changes

Change Defined

"Change is the window through which the future enters your life." It's all around
you, in many types and shapes. You can bring it about yourself or it can come in
ways

Why Change Management?

You can bring the change about yourself or it can come in ways that give you little
choice about its what, when, and how. Fighting against change can slow it down or
divert it, but it won't stop it however. If you wish to succeed in this rapidly changing
new world "you must learn to look on change as a friend - one who presents you
with an opportunity for growth and improvement."

The rate of change in today's world is constantly increasing. Everything that exists
is getting old, wearing out and should be replaced. "Revolutionary technologies,
consolidation, well-funded new competition, unpredictable customers, and a
quickening in the pace of change hurled unfamiliar conditions at management."

True success and long-term prosperity in the new world depends on your ability to
adapt to different and constantly changing conditions. The strategic selection of the
best strategic positioning in the playing field, or the Business Space, your firm must
take is complicated by the fact that the characteristics of the Business Space change
over time. Today, the world is a different place than it was yesterday. "At certain
points, the difference becomes material. Successful firms recognize change. Very
successful ones anticipate it."

Evolutionary (Planned) Change versus Revolutionary Action

How you change a business unit to adapt to shifting economy and markets is a
matter of management style. Evolutionary change, that involves setting direction,
allocating responsibilities, and establishing reasonable timelines for achieving
objectives, is relatively painless. However, it is rarely fast enough or comprehensive
enough to move ahead of the curve in an evolving world where stakes are high, and
the response time is short. When faced with market-driven urgency, abrupt and
sometimes disruptive change, such as dramatic downsizing or reengineering, may
be required to keep the company competitive. In situations when timing is critical to
success, and companies must get more efficient and productive rapidly,
revolutionary change is demanded.

When choosing between evolutionary change and revolutionary action, a leader

must pursue a balanced and pragmatic approach. Swinging too far to revolutionary
extreme may create "an organizational culture that is so impatient, and so focused
on change, that it fails to give new initiatives and new personnel time to take root,
stabilize, and grow. What's more, it creates a high-tension environment that
intimidates rather than nurtures people, leaving them with little or no emotional
investment in the company."4

Resistance to Change

Most people don't like change because they don't like being changed. "If you want
to make enemies, try to change something", advised Woodrow Wilson. When
seeking to change an organization, it's strategy or processes, leaders run into
Newton's law that a body at rest tends to stay at rest. Advocates for change are
greeted with suspicion, anger, resistance, and even sabotage.4 "Not invented here"
syndrome also keeps many sound ideas from gaining the objective assessment they
deserve.

Today's World Realities

The magnitude of today's environmental, competitive, and global market change is

unprecedented. It's a very interesting and exciting world, but it's also volatile and
chaotic:

 Volatility describes the economy's rate of change: extremely fast, with

explosive upsurges and sudden downturns.

 Chaos describes the direction of the economy's changes: we're not sure
exactly where we're headed, but we are swinging between the various alternatives
at a very high speed.6

To cope with an unpredictable world you must build an enormous amount of

flexibility into your organization. While you cannot predict the future, you can get a
handle on trends, which is a way to take advantage of change and convert risks into
opportunities.

Creating Change for Improvement and Competitive Advantage

Change creates opportunities, but only for those who recognize and seize it. "Seeing
is the first step, seizing the second, and continuously innovating is the third."5
Innovation redefines growth opportunities. As current products are becoming
obsolete faster than ever, in order to survive and prosper, organizations continually
need to improve, innovate and modify their products and services. The Silicon
Valley slogan "Eat lunch and you are lunch" is more than a reflection of increasingly
intense work ethic. Riding the wave of change is becoming the most important part
of the business. While the economy is shifting and innovation is rampant, "doing it
the same way" is a recipe for corporate extinction.

Successful change efforts are those where the choices both are internally consistent
and fit key external and situational variables. "You have to find subtle ways to
introduce change, new concepts, and give feedback to people so that they can
accept and grow with it."

Anticipating Change

There is big difference between anticipating and guessing. Anticipation means

expecting, being aware of something in advance, to regard it as possible. The ability
to anticipate is one of the key ingredients of efficient speed and change
management. "Being able to anticipate that which is likely to occur in the next few
months and the next few years is enough to give you an edge over 99% of the
population who simply go along with whatever happens."

How can you see the future? Actually, anticipation is natural - everyone does it
every day. Unfortunately, most people limit exercising their anticipatory skills to
daily routine matters. All you really need to start applying these skills for your
business is a small head start.

Starting with Yourself

The best place to start change is with yourself. If whatever you do doesn't work,
you must be flexible - you must change your action plan if the current one does not
produce the required results. If you want other people to change, you must be
prepared to make the first step yourself. If you cannot change your environment,
you should change your attitude. To achieve effective personal change, consider
practicing the NLP -Technology of Achievement that was specially developed to
discover how people can excel, and most particularly when managing change - how
to create the 'difference that makes the difference'..
Leading Change

The old ways of management no longer work and will never work again. Successful
change requires leadership. When change fails to occur as planned, the cause if
often to be found at a deeper level, rooted in the inappropriate behavior, beliefs,
attitudes, and assumptions of would-be leaders.6 Leadership is all about the process
of change: how to stay ahead of it, master it, benefit from the opportunities it
brings. The best leaders strike first by taking the offensive against economic cycles,
market trends, and competitors. They discover the most effective ways for
achieving significant change - "a change that identifies the realities of the business
environment and reorders them so that a new force is able to leverage, rather than
resist, those realities in order to achieve a competitive advantage."4

The following system will help you to unleash the power of your organization and
reshape it into a more competitive enterprise:
 Develop a vision. To create a seamless bridge from the vision to action, start
with your top management team - they should understand and embrace your
vision.

 Align all your people against the endgame. Invite their opinion regarding
critical issues such as the direction you should be headed, the changes you have to
make, and the resources you have to acquire.

 Using the employee feedback, develop a strategic plan. Stay laser-focused on

the methods that will drive your business unit towards its stated objectives.

 Build a diverse leadership group representing all the key constituencies of

your organization. They will share responsibility for plan management.

 Share detail information about the company and the change progress -
people have to understand where you are and where you are going in order to
contribute effectively to your mission.

Managing Organizational Change

Success in business doesn't come from feeling comfortable. In today's technology-

driven world, business life cycles have accelerated exponentially. The challenge is to
keep a step ahead of changing market conditions, new technologies and human
resources issues.

The wheel of business evolution is a framework and set of tools, which enables you
to manage the complex process of organizational change and transformation more
effectively. The sequence of the eight segments - business environment, business
ecosystem, business design, leadership style, organizational values, management
process, knowledge management systems, and performance measures - reflects the
learning cycle that occurs when outside-in or bottom-up learning takes place.

Behavioral Change

The challenge and the shape of an organization's behavioral change program

depend on the corporate culture and the targeted behaviors that need to be
changed. Your change program needs to be explicitly built around these challenges.
"Very often, these programs involve the creation of incentives which elegantly
reinforce the desired behavior (and therein reinforce the change loop in the learning
dynamic).”

Motivating Employees to Embrace Change

You have a choice of instruments to motivate your people to embrace change.

Performance-incentive levers are especially useful in driving those who lack
direction or initiative. You may also encourage employee feedback on where and
how the company can take corrective action and reward employees for their
contribution. In any case, "once you open the gates and encourage employees to
serve as agents of change, you must demonstrate that their input will have a real-
world impact on the way your company does business."

On the other side, you have to be rather aggressive when dealing with people who
view change as a threat and create roadblocks that stall progress. Anyone who
thinks that it's harmless to make exceptions for a few people and shift resources to
accommodate poor performers is missing an important point. "It's not a few people
who are at stake, it's the corporate culture", says Miles Greer, of Savannah Electric.
"By permitting those who resist or retaliate against change to remain in the
company, you broadcast a message that suggests supporting the company's
mission statement is optional. Even worse, you permit the least-committed
employees to taint and influence the attitude and performance of their peers."

Moving with Speed

In the new economy where everything is moving faster and it's only going to get
faster, the new mantra is, "Do it more with less and do it faster."1 To be able to
move with speed, companies need to establish a change-friendly environment and
develop four major competencies: fast thinking, fast decision making, fast acting,
and sustaining speed.

Making Quick Decisions through Establishing Guiding Principles

Fast companies that have demonstrated the ability to sustain surge and velocity all
have established sets of guiding principles to help them make quick decisions.
Abandoning theoretical and politically correct 'values' and bureaucratic procedures
in favor of a practical, down-to-earth list of guiding principles will help your
company make the decision-making process much faster. Only one question will
need to be asked of any proposed course of action: Does it fit our guiding
principles?

PERFORMANCE APPRAISALS

Definition 1: Systematic Evaluation

“It is a systematic evaluation of an individual with respect to performance on the
job and individual’s potential for development.”

Definition 2: Formal System, Reasons and Measures of future performance

“It is formal, structured system of measuring, evaluating job related behaviors and
outcomes to discover reasons of performance and how to perform effectively in
future so that employee, organization and society all benefits.”

Meaning of Performance Appraisals

Performance Appraisals is the assessment of individual’s performance in a

systematic way. It is a developmental tool used for all round development of the
employee and the organization. The performance is measured against such factors
as job knowledge, quality and quantity of output, initiative, leadership abilities,
supervision, dependability, co-operation, judgment, versatility and health.
Assessment should be confined to past as well as potential performance also. The
second definition is more focused on behaviors as a part of assessment because
behaviors do affect job results.
Performance Appraisals and Job Analysis Relationship

Job Analysis  Performance Standards Performance Appraisals


Describe the work and Translate job Describe the job
personnel requirement requirements into levels relevant strengths and
of a particular job. of acceptable or weaknesses of each
unacceptable individual.
performance

Objectives of Performance Appraisals

Use of Performance Appraisals
1. Promotions
2. Confirmations
3. Training and Development
4. Compensation reviews
5. Competency building
6. Improve communication
7. Evaluation of HR Programs
8. Feedback & Grievances

4 Goals of Performance Appraisals

General Goals Specific Goals

Developmental Use Individual needs
Performance feedback
Transfers and Placements
Strengths and Development needs
Administrative Decisions / Uses Salary
Promotion
Retention / Termination
Recognition
Lay offs
Poor Performers identification
Organizational Maintenance HR Planning
Training Needs
 Organizational Goal achievements
Goal Identification
HR Systems Evaluation
Reinforcement of organizational
needs
Documentation Validation Research
For HR Decisions
Legal Requirements

Performance Appraisal Process

1. Objectives definition of appraisal
2. Job expectations establishment
3. Design an appraisal program
4. Appraise the performance
5. Performance Interviews
6. Use data for appropriate purposes
7. Identify opportunities variables
8. Using social processes, physical processes, human and computer assistance

Difference between Traditional and Modern (Systems) approach to

Appraisals

Categories Traditional Appraisals Modern, Systems

Appraisals
Guiding Values Individualistic, Control Systematic,
oriented, Documentary Developmental, Problem
solving
Leadership Styles Directional, Evaluative Facilitative, Coaching
Frequency Occasional Frequent
Formalities High Low
Rewards Individualistic Grouped, Organizational

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 rate
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 regency 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 rate
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 assessed 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, promote ability 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. Assesses 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
assessor’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.

Ethics of Performance Appraisals / Legally defensible Performance

Appraisals

Ethics of Procedures

1. Formal Standardized Performance Appraisal Systems

2. Uniform to all employees, no illegal differentiations based on cast, religion etc.
3. Standards formally communicated to all employees
4. Freedom to review performance appraisal results
5. Formal appeal process about ratings and judgments
6. Written instructions and training to raters
7. All personal decision makers should be aware of anti-discrimination laws.

Ethics of Contents

1. Content based on job analysis

2. Traits based appraisals should be avoided
3. Objectively verifiable data should be used
4. Constraints on performance beyond control should be prevented
5. Specific job related dimensions to be used rather than single or global
dimensions.
6. Dimensions must be assigned weight to reflect relative importance in
performance score

Ethics of Documentation of Results

1. A thoroughly written record of evidence leading to termination should be
maintained
2. Written documentation of extreme ratings should be maintained
3. Documentation should be consistent among the raters.

Ethics of Raters

1. The raters should be trained in how to use an appraisal system

2. The rater must have opportunity to observe ratees first hand and review
important ratee performance products.
3. Use of more than one rater is desirable to reduce biases.

Organizational Support Factors for Performance Appraisal Systems

Performance appraisal serves many organizational objectives and goals. Besides

encouraging high level of performance, the evaluation system is useful in identifying
employees with potential, rewarding them equitably, and determining employee
needs for development. All these activities are instrumental in achieving corporate
plans and long-term growth, typical appraisal system in most organizations have
been focused on short-term goals only.

From the strategic management point of views, organizations can be grouped under
3 different categories as defenders, prospectors and analyzers.

Defenders: They have narrow and stable product market domain. They don’t need
to make any adjustment in technology, structure or methods of operations etc.
They devote entire attention on improving existing operations. Because of emphasis
on skill building successful defenders use appraisals as means for identifying
training needs. It is more behavior oriented.
Prospectors: They continuously search for new products and opportunities. They
experiment regularly to new and emerging trends. They more focus on skills
identification and acquisition of human resources from external sources prospectors
often use appraisals for identifying staffing needs. The focus is on results.
Analyzers: They operate in two type of product domain markets. One is stable and
other is changing. They watch their competitors closely and rapidly adopt the ideas
that are promising. They use cost effective technologies for stable products and
matrix technologies for new products. Analyzers tend to emphasize on skills building
and skills acquisitions and employ extensive training programs. Hence they use
appraisal more for training and staffing purposes.

However performance appraisal systems has strategic importance in three different

ways.
Feedback Mechanism: Performance evaluation is the central mechanism that not
only provides feedback to individuals but also aids in the assessment of the
progress of organization as a whole. Without appraisals managers of any firm can
only guess as to whether or not employees are working towards realization of the
organization goals.
Consistency between strategy and job behavior: Performance appraisal not
only is a means of knowing if the employee behavior is consistent with the overall
strategies focus but also a way of bringing to the fore any negative consequence of
the strategy – behavior fit. Thus the performance appraisal system is an important
mechanism to elicit feedback on the consistency of the strategy – behavior link.
Consistency between Values and Job Behavior link: Performance evaluation is
a mechanism to reinforce values and culture of the organization. Another
importance is to align appraisal with organizational culture.

Thus the purpose of performance evaluation is to make sure that employee’s goals,
employees behavior and feedback of information about performance are all linked to
the corporate strategy.

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.
Problems of Rating:
1. Leniency & Severity
2. Central Tendency
3. Halo Error
4. Rater Effect
5. Primacy & Regency Effect
6. Perceptual Sets
7. Performance Dimensions Order
8. Spillover Effects
9. Status Effect
EXECUTIVE DEVELOPMENT

Skills required by managers:

i. Technical skills: These skills are developed through experience and

education. These skills are most important for operating managers b'z "how
things work'

ii. Human skills: It refers to the ability to work effective with others on a
person-to person basis. Ability to communicate, motivate, lead.

iii. Conceptual skills: Top mgt. need these type of skills as they are
framing the long range planning Here the enterprise is considered as a whole
rather than parts.

Characteristics of managers:

 He should be flexible
 He should be such person who is capable of handling critical situations rather
than doing routing jobs.
 He engages in anticipatory socialization at each stage he copies the values of
those who are a step above him.

Objectives of executive development:

 To improve in inter-departmental co-operation

 Highlight the individual weakness
 Ensuring that the qualification of key personnel role is better known.
 Creating reserves in management ranks
 Stimulating junior executives to do better work.

a. Top management:

1. To acquire knowledge about the problems of HR.

2. To think through problems this may confront the organization now
and future.

b. Middle line management:

1. To develop the ability to analyze the problems and to take

appropriate actions.
2. To develop familiarity with the managerial uses of financial accounting
psychology, law.

c. Middle functional executives &

specialists:

1. To increase knowledge of business functions & operations in specified field in

marketing,
production, finance and personnel.
2. To increase proficiency in management techniques [work study, inventory
control].
SELF-DEVELOPMENT:

This resource applies to all coaching communities.

This resource is designed to provide explanations about some of the terms and
concepts needed for understanding self-development. It is important to remember
that this module is designed to assist the coach grow as a person. The more
functional and productive our lives are as people, the better we are able to relate
to others including those we coach. The example that we set comes as much from
the way we behave in setting about all we do as it comes from the words that we
speak. If we are living out fulfilling lives, the chances are far greater that the
example that we set in our day to day living will be the sort of example that we
would want others to witness and from which they can derive benefit.

This resource supports the Self Development module that provides a series of
activities for the coach to engage in to channel energy towards personal growth. A
prime purpose for this growth is to assist the coach live out a life that achieves the
coach’s desired level of self-realisation. That is, living life to a greater extent as
the coach wants to live it and therefore spending more time involved with that
which seems core to the person that the coach wants to be.

Self-awareness

Personal development is greatly assisted by working at one’s self-awareness. Self-

awareness, according to Deidre Anderson (2001), is comprised of a physical
dimension (self-image), social dimension (how we think others see us) and a
spiritual dimension (how we interpret our intellectual experiences such as
learning).

“Self-awareness includes recognition of our personality, our

strengths and weaknesses, our likes and dislikes. Developing self-
awareness can help us to recognise when we are stressed or under
pressure. It is also often a prerequisite for effective communication
and interpersonal relations, as well as for developing empathy for
others.”

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One major value of increased self-awareness is that it enables a person to make a
change to his or her behaviour. It is difficult to change a behaviour if one is not
aware of one’s existing behaviour in the first place. As Whitmore (2006) states, “I
am only able to control that of which I am aware. That of which I am unaware
controls me. Awareness empowers me”. Whitmore advocates what he terms the
GROW approach to changing the performance of an athlete, a process easily
adapted by a coach similarly wishing to change his or her performance in an aspect
of his or her life. He does make the point that GROW must be applied within a
context of raising an athletes’ awareness and his or her assuming responsibility for
his or her learning and performance. This approach involves:

G Goal setting – setting goals that lead toward ideal long term solutions
R Reality checking – ensuring that perceptions of present levels of performance
are accurate
O Options – checking alternative courses of action to achieve the goal
W What will be done – When, by whom and the will to do it.

Whitmore’s GROW model, that you may use in the activities for self-coaching, is a
sequence of questions that you will find very useful in coaching your athletes or
fellow coaches. In this instance, it will assist your awareness of skills which you
wish to improve followed by the responsibility of taking action to ensure successful
improvement. Questions that are useful in each step in the process include:

Goals
 What is it you would like to discuss today?
 What outcomes would you like to achieve from the session today?
 What would you need to happen for you to walk away feeling that this
session was useful?

Reality
 What is currently happening?
 How do you know that this is accurate?
 When does this happen?
 How often does this happen? (be as precise as possible)
 What effect does this have?
 What result would you want ideally?

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  How would things be different?
 What have you tried so far?
 What matters most to you about this?

Options
 What could you do to change the situation?
 What approach/actions have you seen used or have used yourself in similar
circumstances?
 Would you like some suggestions from me?
 Who else might be able to help?
 What options do you like the most?
 What are the benefits and possible pitfalls of these options?
 Would you like to choose an option to act on?

What will you do

 What specific steps need to be taken?
 When will you take them? (as precisely as possible)
 How will you know if its working? What would you be noticing if things were
beginning to change? When will you check this out?
 What’s the worst outcome you could live with?
 What outcome could you definitely not live with?

Values

Values provide us with a set of ideals that guide our personal behaviour and the
way in which we interact with our families, others socially and within our work
environment. Values assist us distinguish right from wrong and provide meaning in
the way in which we conduct our lives. Values can be work related, social,
personal or cultural. The following table provides some examples of such values.

Personal Cultural values Social values Work values

values
Caring Celebration of Altruism Autonomy
diversity
Courage Ethnic roots Diversity Competitiveness
Creativity Faith Eco- Conscientiousness

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 consciousness
Friendliness Linguistic ties Equality Dedication
Honesty National ties Fairness Equanimity/Ethics
Honour Regional ties Family closeness Loyalty
Independence Tradition Lovingness Professionalism
Integrity Morality Punctuality
Spirituality Reliability Remunerative
worth
Team player

Guiding principles

These resemble our own set of “commandments” that spell out the ideals that
provide our framework for day to day living. For example, if fairness and equality
are social values that are important to you, a guiding principle in this area of your
life might be “Do unto others as you will have them do unto you.” If caring and
friendliness are important personal values, a guiding principle might be “Commit a
random act of kindness at least once a week”.

Self-management

Most people have multiple roles that they are required to play on a day to day
basis. We have no choice in this matter as we invariably, for example, have
families, homes, jobs, children, clubs and other interests or at least a mix of such
demands and activities. It means that we must apportion our time carefully in
order to get all tasks done and achieve a sense of satisfaction and achievement.
This demands of us that we manage ourselves and in doing so, we will focus
particularly on the way we manage our time and stress.

Time management
According to Deidre Anderson (Pyke, 2001), if we find ourselves running out of
time on a consistent basis this can be a result of a number of reasons including:
 Underestimating the time tasks take
 Procrastinating
 Saying yes to new tasks when active tasks have not been completed

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  Task “hopping” without clear priorities
 Excessive socialising with others

To improve our time management Anderson points to:

 Planning through the use of planning calendars and diaries
 Setting realistic goals for the short, medium and longer term
 Prioritising tasks day to day and sticking to priorities
 Limiting acceptance of new tasks while current tasks are in progress
 Having good systems to see tasks through to completion
 Reorganising the environment for improved efficiencies e.g. less distractions
 Delegating where appropriate
 Developing a support network including a mentor
 Managing stress through taking stock in stressful times and ensuring some
personal time out

According to Kidman and Hanrahan (1997, p.174), if you answer “yes” to one or
more of the following questions, you may have trouble managing your time.
 Have you ever put off something important until later?
 Do you have trouble saying “NO” when people ask you to do things for
them?
 Do you do your best work under pressure?
 Do you ever start new projects before finishing current projects?
 Do you find that you rarely have time to do the things you want to do?

We are all capable of wasting time in many different ways. While the activities are
not bad in themselves they result in stress due to our not making the intended
progress in the time that we have had available for a series of tasks. Relaxation
should be scheduled into our day, however, participating in relaxation activities
when we should be doing other tasks should be considered as a waste of time. It
is important that we identify ways in which we waste time so that we can
implement strategies to change that behaviour.

Procrastination is a time waster that results in our feeling negative about putting
the task off, often a sense of guilt. If we decide not to complete a test in a given
timeframe we may feel guilty or even lose the opportunity to complete, resulting in
our not acquiring the credit for it. This would be an example of procrastination due

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to the negative effects that have arisen. A good way of avoiding procrastination is
through setting goals that you follow through on.

Stress management
The most commonly accepted definition of stress (mainly attributed to Richard S
Lazarus) is that stress is a condition or feeling experienced when a person
perceives that “demands exceed the personal and social resources the individual
is able to mobilize.”

When stress enhances functioning it is regarded as good or adaptive stress. When

stress persists to an excessive degree it needs to be resolved or it may lead to
anxious or even depressive behaviour. Stress includes therefore both a mental and
physical response to the relationship between our experience and our expectations.

Poor management of time is one way of creating an experience that does not
match up to expectations thus resulting in our feeling stressed. Good time
management therefore reduces or assists in the management of stress. Other
strategies that can be used to manage stress include:
 Ensuring that there are “quiet times” during a day and that commitments are
not following each other without a break.
 Eating lunch away from your desk or at least taking time out for a 10-minute
walk after eating.
 Either centering yourself or doing deep breathing exercises for a few
minutes, roughly every hour.
 Choosing to respond positively to a possible stressful situation such as being
caught in heavy traffic (e.g. listen to music).
 Dealing positively with anger (don’t let it build) through applying strategies
such as: being quietly assertive at the outset and not letting it build;
expressing yourself early rather than repressing the problem; using exercise
or meditation; and writing down all of your anger and expressing it fully.
 Having a definite cut-off point between work and leisure time (e.g. taking a
shower, going for a run, or working in the garden).
 Identifying your key stressors and examine practical ways of reducing them
(e.g. positive attitude towards difficult people; assertive, quiet, firm
exchanges about the situation).

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  Compiling lists, plans and goals that logically assist progress through
prioritised tasks
 Looking after your physical, emotional, intellectual, financial and spiritual
needs on a day to day basis – again, balanced priorities is the key.
 Rewarding yourself on completion of a specific task.
 Striving for effective open communication.
 Making use of stress reduction techniques as in Yoga, relaxation, meditation
or exercise for example.

According to Saunders (1997, p.17), research has revealed that there are ten
standard events in human life that are regarded as key stress events. The only
possible surprise in this list is the fact that joyful occasions can provide their own
experience of stress. A common factor in the ten identified events is change. All
change is stressful whether it is planned for or not and equally, if it is either
desirable or undesirable. Key life stress events that have been identified include:

 Moving house
 Marriage
 A major lottery win or bankruptcy
 Change of job
 Loss of income/job
 Death in family
 Relationship break-up
 Major geographical move
 Major illness
 Major accident/injury

Saunders advises that experts suggest that if a person experiences more than
three of these events during a twelve month period this would constitute a
potential stress overload.

Mentoring

Albert Schweitzer reportedly said that modelling was not one way of teaching,
it was the only way. Brian Douge (2001) points out that many effective
coaches have had the good fortune of being coached, as athletes, by a good

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 coach. Some authors believe that the role of mentoring focuses on longer
term skills developed through advice and counselling. Whitmore (2004)
believes that mentoring can impact both on short term performance and long
term skills. Essentially, mentoring has to do with the facilitation of knowledge,
performance and attitudes through a process of interaction with another
person. The mentor will hold the belief that the mentee (person being
mentored) has untapped potential that is still to be realised. Importantly,
some of the potential that is realised is achieved through the mentee that we
will focus on will therefore be informal mentoring which excludes any formal
mentoring contract. While the mentor may be in a position of power (e.g.
teacher observing the behaviour of the mentor and adopting that behaviour.
The mentoring or coach), the relationship is founded and developed on trust
and honesty resulting in the willingness of the mentee to share openly and in
confidence with the mentor.
What Is Knowledge Management?

Knowledge Management is one of the hottest topics today in both the industry
world and information research world. In our daily life, we deal with huge amount
of data and information. Data and information is not knowledge until we know how
to dig the value out of of it. This is the reason we need knowledge management.
Unfortunately, there's no universal definition of knowledge management, just as
there's no agreement as to what constitutes knowledge in the first place. We chose
the following definition for knowledge management for its simplicity and broad
context.

 Definition:
Knowledge Management (KM) refers to a multi-disciplined approach to
achieving organizational objectives by making the best use of knowledge. KM
focuses on processes such as acquiring, creating and sharing knowledge and
the cultural and technical foundations that support them.

 Knowledge Management may be viewed in terms of:

o People – how do you increase the ability of an individual in the

organisation to influence others with their knowledge

o Processes – Its approach varies from organization to organization.
There is no limit on the number of processes
o Technology – It needs to be chosen only after all the requirements of
a knowledge management initiative have been established.

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o Culture –The biggest enabler of successful knowledge-driven
organizations is the establishment of a knowledge-focused culture
o Structure – the business processes and organisational structures that
facilitate knowledge sharing
o Technology – a crucial enabler rather than the solution.

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UNIT-4
INCENTIVES BASED COMPENSATION

Incentives are monetary benefits paid to workmen in recognition of their

outstanding performance. They are defined as variable rewards granted according
to variations in the achievement of specific results.

Advantages of Incentive based compensations

1. Incentives are important for inducement and motivation of workers for

higher efficiency and greater output.
2. Employee earnings go up
3. Enhanced standard of livings of employees
4. Reduction in total unit cost of production,
5. Productivity increases.
6. Production capacity is also likely to increase
7. Reduced supervision

Disadvantages of Incentive based compensation

1. Tendency of quality of products deteriorated due to increased output and

low cost
2. Employees may oppose introduction of new machines
3. Workers demand for minimum wage limit may go up due to high
incentive earnings
4. Sometimes employees may disregard security regulations due to
payment by results approach adopted for higher incentive figures
5. Overworking may affect employee health
6. Employee jealousies with respect to high and low performers

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MENTOR- PROTÉGÉ RELATIONSHIP

Developing Mentor-protégé
relationship:

"The relationship between an experienced employer and a junior employee in

which the
experienced person helps the junior person with effective socialization by sharing
information
gained through experience with the
organization."

Requirements for effective mentor-protégé

relationship:

1. The status & characteristics of the mentor:

Mentors should be seniors in status, experience, age, skills,
knowledge.

3. Protégé:
Junior employees should have the zeal to learn from their senior
employees regarding their career, social and psychological aspect.

4. The relationship: It is based on mutual dependence & mutual

trust.

5. The activities:

 Developing the potentials of the protégé.

 Improving protégés performance
 Interlinking formal learning & practices
 Guide, support, providing feedback

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 5. Developing higher skills:
It should encourage their juniors towards high task performance by
reducing
weakness & strength of the protégés.

6. Response of the protégé:

Proteges should learn carefully regarding career opportunities, personal
goals.
CARRER MANAGEMENT:
Definition: - Flippo
"As a sequence of separate but related work activities that provides
continuity, order
and meaning in a person’s life."

Objectives:
1. Empowerment
2. Reduction in frustration
3. Competitive advantage
4. Acquisition & retention
5. Equity & fairness

DIMENSIONS:

a. Internal: Individual perceptions about their career. [personality,

heredity, work environment, education.]
b. External:
(i) Factory workers: It is the progress which he achieves in rise of pay &
may not be
upward promotion in a vertical
hierarchy.
(ii) Managers: It is the upward promotion to higher posts which are clearly
laid down in the succession plan and in the hierarchy of jobs. [higher pay,
authority, responsibility]

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STAGES OF CAREER DEVELOPMENT:

I EXPLORATION:

 Influence from parents, relatives, teachers.

 Financial resources
 Ends early 20's when one learns the studies goes for employment.

II ESTABLISHMENT STAGE:

 Searching job, getting first appointment.

 First time the candidates will be facing control, command through boss.  By
this they will make mistakes & try to learn lesson from it.

III MID CAREER STAGE:

Employees show continuous improvement performance -fly high.

IV LATE CAREER STAGE:

They are in a relaxed stage.

Higher status, recognition, more subordinates, to listen to your words.

V DECLINE STAGE:

This stage is inevitable and has to be faced by each & everyone of us.

MOTIVATION THEORIES

Performance is a function of ability and motivation. P = f (A x M)

Definition 1: Choices among voluntary activities

A process governing choices made by persons or lower organisms among

alternative forms of voluntary activity

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Definition 2: Arouse enthusiasm to pursue

A result of internal and external processes to the individual that arouse enthusiasm
and persistence to pursue a certain course of action

Definition 3: Need that activates behavior

A process that starts with a physiological deficiency or need that activates behavior
or a drive that is aimed at a goal or an incentive.

Meaning of Motivation

Motivation is a set of forces that cause people to behave in certain ways.

Motivation Process (6 Steps)

1. Individual Needs
2. Search for ways to satisfy needs
3. Goal & Objectives directed
4. Increased performance
5. Receiving rewards or punishment
6. Reassessment of needs

Criticality of Motivation to Managers

Importance of Motivation
 Motivation helps employees find new ways of doing a job
 Motivation makes employees quality conscious
 Motivation increases productivity very high
 Motivation stimulates both participation and production at work
 Motivation comprehends jobs related behaviors
 Motivation increases attention towards human resources along with physical
resources

Challenges of Motivation
 Diverse and changing workforce

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 Rightsizing, Downsizing, Hire-n-Fire, Pay-for-Performance strategies
 Motives can only be inferred, not seen
 Dynamic nature of human needs

Objectives of Motivation

High productivity
Increase quality consciousness
Stimulate participation at work

Theories of Motivation
Early Theories

Scientific Management: Motivation by scientific management is associated with

F.W. Taylor’s techniques of scientific management. Taylor said that people are
primarily motivated by economic rewards and will take direction if offered an
opportunity to improve their economic positions. Based on this Taylor described
following arguments
 Physical work could be scientifically studied to determine optimal method of
performance of a job
 Workers could be more efficient by telling them how they were to do a job
 Workers would accept the above prescription if paid on differentiated
piecework basis
 Disadvantages – Dehumanized workers, treated them as mere factors of
production, only stressed on monetary needs, ignored human needs

Human Relations Model: Elton Mayo’s human relations model stressed on social
contacts as motivational factor. Greater importance was given to informal groups.
However too much reliance on social contacts to improve productivity was a major
drawback.

Contemporary Theories
Content Theories (Maslow’s Need Hierarchy, Herzberg’s 2-factors, Alderfer’s ERG,
Achievement Motivation Theory)
Process Theories (Vroom’s expectancy, Adam’s Equity, Porter’s Performance and
Satisfaction Model)

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Reinforcement categories
ERG Theory (Alderfer): Existence – Relatedness – Growth

ERG theory emphasizes more on three broad needs that is existence, relatedness
and growth. Its hypothesis is that there may be more than one need operating at
the same time. ERG theory further states that when a higher level need is
frustrating, the individual’s desire to increase lower level needs takes place. Thus
ERG theory contains frustration-regression dimension. Frustration at higher level
need may lead to regression at lower level need.
Advantages – More consistent with our knowledge of differences among people, it
is less restrictive and limiting, it is a valid version of need hierarchy.

Disadvantages – No clear-cut guideline of individual behavior patterns, too early

to pass a judgment on the overall validity of the theory.

Two-Factor Theory (Herzberg)

Fredrick Herzberg states that the motivation concept is generally driven by two
factors of motivators of job satisfactions and hygiene factors about job
dissatisfaction. Motivators are generally achievement, recognition, the work itself,
responsibility, advancement and growth, which are related to job satisfaction.
Hygiene factors deal with external factors like company policy, supervision,
administration and working conditions, salary, status, security and interpersonal
relations. These factors are known as hygiene factors or job dissatisfiers, job
context factors.
Advantages – tremendous impact on stimulating thought on motivation at work,
increased understanding of role of motivation, specific attention to improve
motivational levels, job design technique of job enrichment is contribution of
herzberg, double dimensions of two factors are easy to interpret and understand.

Disadvantages – Limited by its methodology, reliability questioned, it focuses

more on job satisfaction not on motivation, no overall measure of satisfaction
utilized, inconsistent with previous research, productivity factor ignored.

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MORALE

Definition 1: Mental condition, attitude, willingness

Morale is a mental condition or attitude of individual and groups, which determines

their willingness to co-operate.

Definition 2: Attitudes, voluntary cooperation

Morale is attitudes of individuals and groups towards their work environment and
towards voluntary cooperation to the full extent of their ability in the best possible
interest of the organization.

Distinction between Morale and Motivation: -

Morale Motivation
1. Composite of feelings, attitudes 1. Motivation moves person to
and sentiments that contribute towards action.
general satisfaction at workplace. 2. A Process of stimulating
2. A Function of freedom or restraint individuals into action to accomplish
towards some goal. desired goals.
3. It mobilizes sentiments. 3. A Function of drives and needs.
4. Morale reflects Motivation. 4. It mobilizes energy.
5. Motivation is a potential to
develop morale.

Importance of Morale as a Responsibility of Management

 Organization Climate: Morale is an important part of organization climate.

 Attitudes & Sentiments: Morale reflects attitudes and sentiments towards
organization goals and objectives.
 Productivity: Morale highly affects productivity and satisfaction of individuals.
 Total Satisfaction: Morale is total satisfaction derived from employees job,
boss and his organization.

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 Labor Problems Solved: High morale assists managers to overcome several
labor problems like labor turnover, absenteeism, indiscipline, grievances,
disharmony etc.
 Cooperation: Morale helps to seek cooperation from the workers in getting
higher production at minimum possible cost by reducing wastages of time, man,
machines and materials.
 Production & Productivity: Production and productivity are directly affected
by high morale in a positive manner.
PERSONNEL POLICIES

Meaning of Personnel Policy

A Policy is a Plan of Action. It is a statement of intentions committing the

management to a general course of action. A Policy may contain philosophy and
principles as well. However a policy statement is more specific and commits the
management to a definite course of action.

Hence Personnel policy is a plan of action to be implemented by HR department

towards the organization and employees. A personnel policy spells out basic needs
of the employees. Through personnel policy the personnel department ensure a
consistent treatment to all personnel by minimizing favoritism and discrimination.
Personnel policy serves as a standard of performance for all employees. Sound
personnel policies help build employee motivation and loyalty. And this happens
when personnel policies reflect fair play and justice and help people grow within the
organization. Personnel policies are also plans of action to resolve intra-personal,
inter-personal and inter-group conflicts.

Importance of Personnel Policy

Personnel policy is very important for an organization since it gives several benefits
for managing your human resources effectively. In the light of these benefits listed
below we would be able to understand the relative importance of Personnel policy.

 Basic Needs: Personnel policy helps the management to think deeply about
basic needs of organization and the employees.

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 Consistent Treatment: Personnel policies ensure consistent treatment of all
personnel throughout the organization.
 Minimize Favoritism: Personnel policies help minimize favoritism and
discrimination
 Continuous action: Personnel policies ensure continuous action even if top
management is changed. These policies promote stability.
 Standard of Performance: Personnel policies serve as a standard of
performance.
 Motivation & Loyalty: Personnel policies help build employee motivation and
loyalty.
 Fair Play & Justice: Personnel policies reflect established principles of fair
play and justice.
 Growth: Personnel policies help people grow within the organization.

1. To develop competitive spirit.

2. To build loyalty
3. To increase the morale
4. To reward committed and loyal employees.

PROMOTION
Promotion:
It is an advancement of an employee through a better job - better in terms of greater
responsibility, authority, prestige and especially increased rate of pay or salary. -
Paul Pigors and charles A. Myers.

Types of promotion:
1. Vertical promotion: Employees move to the next higher
level in the organizational hierarchy with greater responsibility, authority,
salary and status.

2. Upgradation: The job is upgraded in the organizational hierarchy by

the way of increased salary, authority and responsibility.

3. Dry promotion: Here the employees is moved to the next

cadre in theorganizational hierarchy without any increase in salary but
with an increase in responsibility and authority.

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 Purpose of promotion

1. To develop competitive spirit.

2. To build loyalty
3. To increase the morale
4. To reward committed and loyal employees.

WORKERS’ PARTICIPATION IN MANAGEMENT

Broadly, worker’s participation in management means associating representatives

of workers at every stage of decision-making. Participative management is
considered as a process by which the worker’s share in decision-making extends
beyond the decisions that are implicit in the specific content of the jobs they do.

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This amounts to the workers having a share in the reaching of final managerial
decisions in an enterprise.

Definition 1: Association of Workers in decision-making process

Workers’ participation may be taken to cover all terms of association of workers

and their representatives with the decision-making process, ranging from exchange
of information, consultations, decisions and negotiations to more institutionalized
forms such as the presence of the workers’ members on management or
supervisory boards or even management by workers themselves.

Scope of workers’ participation

Scope of workers participation ranges over three managerial decision-making
stages.
Social Decisions: Hours of work, welfare measures, work rules, safety, health,
sanitation and noise control.
Personnel Decisions: Recruitment and selection, promotions and transfers,
grievance settlements, work distribution
Economic Decisions: Methods of manufacturing, automation, lay offs, shut-
downs, mergers and acquisitions and other financial aspects.

Methods of Workers’ Participation in Management

1. Board Level
2. Ownership
3. Complete Control
4. Staff Councils
5. Joint Councils
6. Collective Bargaining
7. Job Enlargement and Enrichment
8. Suggestion Schemes
9. Quality Circles
10.Empowered Teams
11.Total Quality Management
12.Financial Participation

Prerequisites of Successful Participation

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1. Clearly defined and complementary Objectives
2. Free flow of information and communication
3. Representatives of workers from workers themselves
4. Outside trade union participation should be avoided
5. Workers’ education and training
6. No threat by participation
7. Association at all levels of decision-making

Benefits of Participation
1. Gives identity to an employee
2. Motivates employee
3. Self-esteem, job satisfaction and cooperation improves
4. Reduced conflicts and stress
5. More commitment to goals
6. Less resistance to change
7. Less labor problems
8. Better quality suggestions expected
UNIONS

Employee associations are popularly known as unions. However these unions are
not confined to only strikes and negotiations. Their role is much wider than this.
Unions make their presence felt in recruitment and selection, promotions, training,
termination or lay off. Many programs, which contribute to the Quality of Work Life
(QWL) and productivity, are undertaken by management in consultation with and
with the cooperation of the unions. Unions also participate in deciding wage and
salary structure and negotiate revisions once in 3 or 5 years.

Trade unions are voluntary organizations of workers or employers formed to

promote their interests through collective action. Trade unions Act 1926 defines a
trade union as a combination, whether temporary or permanent formed primarily
for the purpose of regulating the relation between
1) Workmen and Employers
2) Workmen and Workmen
3) Employers and Employers
For imposing restrictive conditions on the conduct of any trade or business and
includes any federation of two or more trade unions

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Why do employees join Trade Unions?
To protect themselves against exploitation by management
By force
Dissatisfaction
Lack of Power
Union Instrumentality

ROLE OF CONSTRUCTIVE AND POSITIVE UNION

Unions have a crucial role to play in Industrial Relations. Unions have following
broad role or objectives as mentioned below.
 To redress the bargaining advantage of the individual worker vis-à-vis the
individual employer, by substituting joint or collective action for individual
action.
 To secure improved terms and conditions of employment for its members
and the maximum degree of security to enjoy these terms and conditions.
 To obtain improved status for the worker in his work or her work
 To increase the extent to which unions can exercise democratic control over
decisions, which affect their interests by power sharing at the national,
corporate and plant levels.

The union power is exerted primarily at two levels. Industry level to establish joint
regulation on basic wages and hours with an employer’s association. Plant level,
where the shop stewards organizations exercise joint control over some aspects of
the organization of work and localized terms and conditions of employment.

Unions are party to national, local and plant level agreements, which govern their
actions to a greater or lesser extent, depending on their power and on local
circumstances.

UNFAIR LABOR PRACTICES

Industrial Disputes Act 1947 specifies the following as unfair labor practices

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 To interfere, restrain, coerce workmen in the exercise of their right to
organize, form, join or assist a trade union.
 Threatening workmen with discharge or dismissal
 Threatening of lockout or closure
 Granting wage increases to undermine trade union efforts
 To dominate, interfere with or support financially or socially by taking active
interest in forming own trade union, and
 Showing partiality or granting favor to one of several trade unions to a non-
recognized trade union
 To establish employer sponsored trade unions
 To encourage or discourage memberships in any trade union by
discriminating workman by punishing or discharging, changing seniority
ratings, refuse promotions, giving unmerited promotions, discharging union
office bearers
 To discharge or dismiss workmen by victimizing, not in good faith,
implicating in criminal case, for patently false reasons
 To abolish work of a regular nature
 To transfer workmen
 To show favoritism or partiality
 To replace workers
 To recruit workmen during legal strikes
 To indulge in acts of violence or force
 To refuse collective bargaining
 Proposing and continuing lockouts

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ORGANIZATIONAL DOWNSIZING

Downsizing necessarily means reducing work force to an optimal level depending

upon the business conditions and organizational needs. It is said that an
organization should be rightly staffed ie. It should not be overstaffed and or
understaffed. There are broadly following method used to downsize the workforce
as mentioned below.

Retrenchment:
It means termination of service. It is a termination for reasons other than
disciplinary actions, retirement or superannuating, expiry and termination of
contract or prolonged illness. Retrenchment compensation and notice for
retrenchment are only pre-conditions for retrenchment and not a right, which a
retrenched worker can claim. If notice and compensation are not given, the worker
will not be called as retrenched. Compensation is payable for 15 days wages for
every completed year of service besides one month’s notice or pay in lieu of notice.
But employee should have completed at least one year of complete service in order
to receive compensation.

Lay Offs
Lay of is inability of the employer to provide employment to workers due to
circumstances beyond his control such as shortage of power, coal, breakdown of

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machinery, natural calamity etc. It is not a termination of service. Lay off
compensation can be claimed as a statutory right by the worker if he has
completed one year of continuous service or has worked for 240 days on the
surface or 190 days underground in 12 calendar months. Compensation payable is
half of the wages.

Voluntary Retirement Schemes

VRS are announced when there is a huge pool of old aged manpower occupying
senior positions amounting to surplus. Many organizations are providing liberal
incentives to leave before age of superannuating. VRS in other words is a
retirement before the age of retirement.

MEANING OF ORGANIZATION STRUCTURE

Organizational structure is the formal decision-making framework by which job

tasks are divided, grouped, and coordinated. Formalization is an important aspect
of structure. It is the extent to which the units of the organization are explicitly
defined and its policies, procedures, and goals are clearly stated. It is the official
organizational structure conceived and built by top management. The formal
organization can be seen and represented in chart form. An organization chart
displays the organizational structure and shows job titles, lines of authority, and
relationships between departments.

Organisation Charts:
The organization charts are the sample and an understandable way showing the
formal organization structure-It gives a clear overview of the shape and structure
of an organization.

It is an order and the design of an organization captured in a visual form.

It is a blue print or a basis for proper conceptualization, further thinking, a

discussion board for further modifications without affecting the actual changes.

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The organization chart well drawn, can give an insight in to the organization, its
hierarchical structure line and staff authority, authority and responsibility levels,
chain of command, line of delegated authority, decentralization or otherwise in an
organization, span of control etc.

It also helps and guides the management in evolving changes with the changes in
the environment and for faster realization of goals.

It is a good guide for the new recruits in their initiation in the organization and in
understanding the authority responsibility levels including his own.

Formal Organisation

The intentional structure of roles in a formally organised enterprise is a formal

organisation

It should have an attribute of flexibility, room for discretion and the recognition of
individual talents and the capacities. In a group functioning the individual effort will
have to be chanelize through the group leader and has to be for the organization’s
good.

Informal Structure

The informal organization is the network, unrelated to the firm's formal authority
structure, of social interactions among its employees. It is the personal and social
relationships that arise spontaneously as people associate with one another in the
work environment. The supervisor must realize that the informal organization
affects the formal organization. The informal organization can pressure group
members to conform to the expectations of the informal group that conflict with
those of the formal organization. This can result in the generation of false
information or rumors and resistance to change desired by management. The
supervisor should recognize the existence of information groups, identify the roles
member play within these groups, and use knowledge of the groups to work

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effectively with them. The informal organization can make the formal organization
more effective by providing support to management, stability to the environment,
and useful communication channels.

Matrix Structure

In a matrix organization, teams are formed and team members report to two or
more managers. Matrix structures utilize functional and divisional chains of
command simultaneously in the same part of the organization, commonly for one-
of-a-kind projects. It is used to develop a new product, to ensure the continuing
success of a product to which several departments directly contribute, and to solve
a difficult problem. By superimposing a project structure upon the functional
structure, a matrix organization is formed that allows the organization to take
advantage of new opportunities. This structure assigns specialists from different
functional departments to work on one or more projects being led by project
managers. The matrix concept facilitates working on concurrent projects by
creating a dual chain of command, the project (program, systems, or product)
manager and the functional manager. Project managers have authority over
activities geared toward achieving organizational goals while functional managers
have authority over promotion decisions and performance reviews. An example is
an aerospace firm with a contract from NASA.

Divisional Structure

In a divisional organization, corporate divisions operate as relatively

autonomous businesses under the larger corporate umbrella. In a conglomerate
organization, divisions may be unrelated. Divisional structures are made up of self-
contained strategic business units that each produces a single product. For
example, General Motors' divisions include Chevrolet, Oldsmobile, Pontiac, and
Cadillac. A central headquarters, focusing or results, coordinates and controls the
activities, and provides support services between divisions. Functional departments
accomplish division goals. A weakness however, is the tendency to duplicate
activities among divisions.

Organic Structure

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On the other hand, the organic structure is more flexible, more adaptable to a
participative form of management, and less concerned with a clearly defined
structure. The organic organization is open to the environment in order to
capitalize upon new opportunities.

Organic organizations have a flat structure with only one or two levels of
management. Flat organizations emphasize a decentralized approach to
management that encourage high employee involvement in decisions. The purpose
of this structure is to create independent small businesses or enterprises that can
rapidly respond to customers' needs or changes in the business environment. The
supervisor tends to have a more personal relationship with his or her employees.

Functional Structure

Functions or divisions arrange traditional organizations. In a functional

organization, authority is determined by the relationships between group
functions and activities. Functional structures group similar or related occupational
specialties or processes together under the familiar headings of finance,
manufacturing, marketing, accounts receivable, research, surgery, and photo
finishing. Economy is achieved through specialization. However, the organization
risks losing sight of its overall interests as different departments pursue their own
goals.

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