Management Process

UNIT -2
Planning ;Mission ,philosophy,
objectives, Operational Plan.
Introduction

• Planning is the first step of management process and continuous

intellectual process of determining philosophy, objectives, policies,
procedures, programmes and rules.

• It includes various activities to achieve the future target.

A hierarchical model of planning

Mission and Vision statement

Value statement
( philosophy)

Goals

policies

Rules, project, procedures

Mission of planning
• The mission of the organization is to provide benefits to its customers.
• Since the customer exists outside the organization, the mission must be defined
from an external point of view.
• Mission always implies concern with the future and with this in mind,
planning:
• 1. Leads to success in achieving goals;
• 2. Provides meaning to effective use of available resources such as personnel
and facilities in the organization;
• 3. Helps to cope with situational crises;
• 4. Ensures effective control leading to cost effectiveness and
• 5. Helps to discover the need for change.
Philosophy of planning
• 1. Planning sets guidelines and constraints for the behaviour of the
firm.
• 2. Planning requires flexibility, energy and specificity. It should be
simple, realistic, a guide for action in reaching the goal, and must
allow for adjustment as expected and unexpected events occur.
• 3. Planning is essential; a manager must be able to overcome
barriers that impede planning.
• 4. Planning must be done by hierarchical order and must be
congruent in its flow.
Principles of planning
• There are 11 principles of planning as follows:
• 1. Contribution to objectives: Every major and derivative plan
should contribute positively towards the accomplishment of the
enterprise’s objectives.
• 2. Efficiency of plans: The efficiency of a plan is measured by the
amount it contributes to desired objectives minus the costs and
other undesirable consequences involved in the formulation and
operation of the plans. This principle stresses the economical use of
individual efforts to achieve group goals.
• 3. Primacy(base) of planning: This principle emphasizes that a
manager can hardly perform other managerial functions without a
road map of plans to guide him .
• 4. Planning premises: A coordinated structure of plans can be
developed only when managers throughout the organization
understand and agree to utilize consistent planning premises.
Perhaps the main deficiency of planning arises from poorly
structured plans.
• 5. Policy framework: A consistent and effective framework of plans
can be developed only if the basic policies that guide decisions are
expressed clearly and are understood by the manager who prepares
the plans.
• 6. Timing: When the plans are structured in a time frame to provide
an appropriately limited, network of derivative and supporting
programmes, these plans can contribute effectively and efficiently
towards the attainment of the enterprise objectives. Both premises
and policies are useless without proper timing.
• 7. Alternatives: In choosing from alternatives, the planner should
focus primarily on those factors that are critical to the attainment of
the desired goal. This will help in selecting the most favourable
alternative.
• 8. Commitment: Logical planning should cover a time period that
can ensure that the commitment involved in a decision can be
fulfilled. This is necessary to make reasonably sure that
commitments are met.
• 9. Flexibility: This principle deals with the ability to change what is
built into the plans and reduce the risk of loss due to unexpected
events. However, the cost of flexibility should be weighed against
the dangers of future commitments made.
• 10. Navigational change: The manager should periodically check
on events and expectations and redraw plans to maintain a course
towards the desired goal. Unless plans have in-built flexibility,
navigational change is difficult or costly. But in-built flexibility
should not be an excuse to refrain from periodic revision of plans, if
circumstances so warrant.
• 11. Competitive strategies: While formulating plans, a manager
should take into account the plans of rivals or competitors, and what
they would do in a similar situation.
Objectives of planning
• Objectives are framed to ensure the success of an organization.
Planning is not possible in the absence of objectives. Following are the
objectives for management planning:
• 1.To bring about unity and uniformity in the working of an
organization.
• 2.To achieve coordination in power and efforts of the employees
working in an organization.
• 3.To direct human power towards collective interest.
• 4.To curtail the cost/expenses of an organization.
• 5.To bring about a certainty in the functions by formulating plans
Importance of planning
• 1. Planning is an important function of management; therefore, an
organization’s success depends on good planning.
• 2. Planning eliminates or reduces the chances of uncertainty.
• 3. Planning avoids overlapping of activities.
• 4. Planning helps to set standards and targets.
• 5. Planning helps in coordinating activities.
• 6. Planning gives direction to an organization.
• 7. Planning eliminates duplication of efforts.
• 8. Planning concentrates resources on important services.
• 9. Planning improves communication and inter-personal relationships.
• 10. Planning is looking ahead; determining goals, objectives, policies, procedures
and methods and considering various other activities
• 11. Planning ensures the best utilization of resources and economy of performance.
• 12. Planning is a continuous process, affecting improvement in services and
solving problems.
• 13. Planning ensures order and control.
• 14. Planning leads to effectiveness and efficiency.
• 15. Planning provides flexibility and makes provision for further growth and
development.
• 16. Planning helps in decision making.
• 17. Planning reduces the cost of performance.
Components of planning
• 1. Objectives:
• Objectives comprise a basic plan, which determines the goals or end
results of the projected action of an enterprise. By setting goals,
objectives provide the foundation upon which the structure of a
plan can be built.
• 2. Policies:
• Policies are written statements or oral understanding. Sometimes,
they are general terms for governing actions in repetitive situations.
Realization of objectives is made easy with the help of policies, as
policies provide practical solutions to problem.
• 3. Procedures:
• Procedures indicate the specific manner in which a certain activity
is to be performed. They are more definite and specific guides to
action, but only for the fulfilment of objectives.
• 4. Programmes:
• Programmes join together different plans for implementing them in
a complete and orderly course of action. Programmes are necessary
for both repetitive (routine planning) and non-repetitive (creative
planning) course of action.
• 5. Budgets:
• Budgets are plans continuing statements of expected results in
numerical terms, that is, rupees, man- hours, product units and so
forth.
Planning levels in management :

• Planning may be classified into,

• directional planning,
• administrative planning and
• operational planning.
Directional planning
• Directional planning It is often called policy planning and is
concerned with the broad general direction of the programme.

• This is, setting the framework of intent and philosophy within which
the programme will proceed, and relating the programme to the
broad planning of the community in which the programme will
function,
• e.g. the state level planning at the directorate or secretariat of states
or union (centre).
Administrative planning
• It is concerned with the overall implementation of the policies
developed and mobilization and coordination of the personnel and
material available in the administrative unit for the effect of the
service.
• For example, the medical superintendents in major hospitals or
district surgeons in district hospitals or medical superintendents in
primary health centres are responsible for administrative planning.
Operational planning
• It is concerned with the actual delivery of the service to the
community.
• For example, nursing personnel of all levels plan to deliver proper
service to the community either in hospital or community.
• Planning may be classified as,
• long range and
• short range and
• also as strategic
• and operational.
• There are similar activities involved in long- and short-range
planning and also in strategic and operational planning.
• Strategic planning Usually the strategic and long-range planning is
undertaken by the top level.
• which involves following activities:
• 1. Providing detailed analysis of strengths, weaknesses, opportunities
and threats (SWOT) of an organization’s both internal and external
environments.
• 2. Developing philosophy and formulation of objectives.
• 3. Allocating resources on the basis of priority.
• 4. Evaluating activities to increase efficiency.
• 5. Providing proper direction to avoid duplication of services.
• Operational planning :
• Usually this operational and short-range planning is undertaken by
middle or supervisory level personnel.
• This involves:
• 1. Planning for a few months to a financial year.
• 2. Planning on budgeting details and provision of short-range goods;
this should be achieved within the given period.
• 3. Extensional aspect of long-range plan can sometimes apply to our
nursing situation.
• The need arises to budget time and related provisions for providing
nursing care in accordance to the events and situation.
Advantages of planning
• The following points emphasize the benefits of planning.
• 1. Offsets future uncertainty and change:
• A business concern has to work in an environment which is uncertain and ever
changing. Planning helps the manager carve out the future course of action and
this brings a higher degree of certainty and order into the organization, than
would be present without planning.
• 2. Tackles increasing complexity in modern business:
• To run a modern business undertaking, there is need for a large number of
people with different specializations and complex machines. This makes it
necessary for the management to depend on planning to get a clear idea of
what is to be done, when it is to be done, where it is to be done and how it is to
be done.
• 3. Helps in coordination:
• Planning, through its defined objectives, well-publicized policies,
programmes and procedures, helps the management in the
coordination process. According to Koontz and O’Donnell, ‘plans are
selected courses along which the management desires to
coordinate group action.’
• 4. Helps in exercising effective control:
• Planning involves determining in advance the work to be done, the
person responsible for doing it, the time to be taken to do that work
and the costs to be incurred. This makes it easy to compare the
actual performance with the planned one. In case of deviations,
steps may be taken to find out the reasons for such deviations. Thus,
planning helps in exercising effective control.
• 5. Helps in the proper utilization of the company’s resources:
• As planning involves deciding in advance what is to be done, when,
where, by whom it is to be done, etc., it is possible to properly utilize
the company’s resources and to achieve its objectives in the best
and most cost-effective manner.
• 6. Facilitates unity of action:
• When properly planned, policies, procedures and programmes are
predetermined, and every decision and action should be within the
framework of such policies, procedures and programmes. This
facilitates unity of action and also avoids confusion or
misunderstanding at any level.
• 7. Helps in avoiding business failures:
• As planning involves the selection of best objectives, unity of action,
coordination of activities, economy in operation and offsetting of future
uncertainty and change, there is a great possibility of avoiding business
failures.
• 8. Focuses attention on the organization’s goals:
• Planning facilitates a manager to concentrate his attention on the
organizational goals and activities. This makes it easier to enforce and align
the resources of the organization in an efficient manner. The organization as
a whole then becomes able to embrace similar goals and collaborates in
accomplishing them.
• 9. Improves competitive strength:
• The enterprises that adopt planning will have a competitive edge over other
enterprises which do not. This is because planning enables such enterprises
to discover new opportunities and thereby shape their own future.
• 10. Improves adaptability:
• Planning helps the manager to foresee the challenges that may crop
up during the process, and he/she may accordingly keep room for
adaptability.
• 11. Guides decision making:
• The success of an organization depends to a great extent on the type
of decisions that are made at the various levels. Decision making
involves making a choice from various available alternatives after
evaluating each of them. Planning targets, objectives and course of
action provide managers with guidelines and criteria against which
to evaluate alternatives and choose those which are the most
suitable.
Limitations or disadvantages of planning
• 1. Forecasts:
• Planning is based on forecasts and if realizable data is not available for
making forecasts, planning is sure to lose much of its value.
• 2. Rigidity:
• Planning implies strict adherence to predetermined policies, procedures
and programmes. This restricts individual freedom, initiative and desire for
creativity.
• 3. Time consuming:
• Planning is time consuming and may delay action in certain cases. But to
make plans realistic, it is necessary that sufficient time be given to the
planning process.
• 4. Costly:
• Planning is an expensive exercise as a lot of money has to be spent for
preparing estimates, collecting information and facts for analysis, etc.
• 5. Influence of external factors:
• Sometimes, because of the influence of external factors like
government control, natural calamities, break-out of war, changes in
political and economic situations, etc., that are beyond the control of
the planners, the effectiveness of planning becomes limited.
• 6. Limited scope for specific organizations:
• With quickly changing situations in organizations, the scope of planning
is said to be restricted. It is asserted that for industries engaged in the
publication of textbooks or producing fashionable articles, working on a
daily basis is more economical than on a planned basis.
• 7. People’s resistance:
• Planning may sometimes generate resistance. In old established
organizations, managers are often frustrated in instituting a new
plan simply by the unwillingness or inability of workers to accept it.
• 8. Failure of planners:
• Sometimes, the persons involved in the planning process fail to
formulate correct plans. Some of the reasons for this failure are lack
of commitment to planning, failure to formulate sound strategies,
lack of clearly defined objectives, tendency to overlook planning
premises, lack of clarity on the scope of plans, lack of support from
the top management, lack of effective control techniques, lack of
delegation of authority, etc.
Conclusion
• Planning is a familiar day-to-day activity.
• A plan is a projected course of action.
• The planning process is a critical element of management.
• It must be learned by the nurse manager because it will not happen by
accident.
• Planning is that function of a manager in which he decides in advance what he
will do.
• It is a decision- making process of a special kind;
• its essence is futurity.
• The responsibility for overall planning is vested in the highest level of
administrative authority.
• Planning consists of several individual plans or components and parts that
bind together the structure of operations.
 Staffing:
Philosophy, staffing study,
norms, activities, patient
classification systems,
scheduling
Definition
• Staffing is a selection, training, motivating and retaining of a
personnel in the organization.
• Staffing is a process of planning, employing and developing human
resources at different levels of an organization.
• Staffing includes;
• 1. Planning 2. Recruitment 3. Selection 4. Placement 5. Training and
development 6. Remuneration 7. Performance appraisal
8. Promotion 9. Transfer
Objectives of Staffing
• 1. To ensure maximum utilization of human resources.
• 2. To discover and obtain competent personnel.
• 3. To ensure the continuity and growth of organization.
• 4. To improve job satisfaction.
• 5. To be able to meet crisis situations.
• 6. To deliver good quality of care.
Functions in staffing
• 1. Identifying the type and amount of service needed by organization.
• 2. Determining the personnel categories that have the knowledge and skill to
perform needed service measures.
• 3. Predicting the number of personnel in each job category that will be needed to
meet anticipated service demands.
• 4. Obtaining, budgeted positions for the number in each job category needed to
service for the expected types and number of clients.
• 5. Recruiting personnel to fill available positions.
• 6. Selecting and appointing personnel from suitable applicants.
• 7. Orienting personnel to fulfil assigned responsibilities.
• 8. Assigning responsibilities for client services to available personnel
Philosophy of Staffing in Nursing
The nurse administrator believes that:
1. The knowledge and skill of the staff can adequately fulfil the needs of
the patient and thereby ensure both job satisfaction and quality care.
2. Only professionally trained nurses can provide a high quality of
patient care and handle critically ill patients by providing both
technical and intrapersonal skills.
3. A professional nurse can not only treat chronically ill patients, but also
provide health education and rehabilitative care, which is more complex.
4. By determining patient needs and doing assignments, job
quantification and analysis can be done.
• 5. All sorts of nursing-related plans, e.g. master rotation plan, duty
roster, etc., should be done only by nursing heads.
• 6. A staffing plan should be delegated to each unit-level head nurse
so that the activities of each ward and details of each shift are
planned well.
Objectives of staffing in nursing
• 1. Provide an all professional nurse staff in critical care units,
operating rooms, labour and emergency room.
• 2. Provide sufficient staff to permit a 1:1 nurse- patient ratio for each
shift in every critical care unit.
• 3. Provide sufficient nursing staff in general, medical, surgical,
obstetrics and gynaecology, paediatric and psychiatric units to
permit a 1:5 nurse patient ratio on a day and afternoon shifts and
1:10 nurse- patient ratio on night shift.
4. Involve the heads of the nursing staffs and all nursing personnel in
designing the department’s overall staffing program.
5. Hold each head nurse responsible for translating the department’s
master staffing plan to sequential weeks time schedules for
personnel assigned to her/ his unit.
6. Inform each nursing employee that requests for specific vacation or
holiday time will be honoured within the limits imposed by patient
care.
NORMS OF STAFFING
• Norms are standards that guide, control, and regulate individuals
and communities.
• For planning nursing manpower we have to follow some norms. The
nursing norms are recommended by various committees, such as;
• The Nursing Man Power Committee, the High-power Committee, Dr.
Bajaj Committee, and the staff inspection committee, TNAI and INC.
• The norms has been recommended taking into account the
workload projected in the wards and the other areas of the hospital.
Recommendations of S.I.U (Staff Inspection
Unit)
• The norm has been recommended taking into account the workload
projected in the wards and the other areas of the hospital.
• The posts of nursing sisters and staff nurses have been clubbed
together for calculating the staff entitlement for performing nursing care.
The assistant nursing superintendent are recommended in the ratio of 1
ANS to every 4.5 nursing sisters.
The ANS will perform the duty presently performed by nursing sisters
and perform duty in shift also.
• The posts of Deputy Nursing Superintendent may continue at the level
of 1 DNS per every 7.5 ANS
• There will be a post of Nursing Superintendent for every hospital
having 250 or beds.
• There will be a post of 1 Chief Nursing Officer for every hospital
having 500 or more beds.
• It is recommended that 45% posts added for the area of 365 days
working including 30% leave reserve.
 Human Resource Management;
Recruiting, Selecting, Deployment,
Retaining, Promoting, Superannuation
etc.
Introduction
• HRM is the management of the organization’s employees.
• HRM is the most critical function of manager. The main function is
the focus on recruitment of management, & providing direction for
the people who work in the organization.
Definition
• “It is the organizational function that deal with issues related to
people such as compensation, hiring, performance management,
organization development, safety, wellness, benefit, employee
motivation, communication & training”
• According to B Flippo: “It is defined as the process of searching for
prospective employees and stimulating them to apply for job in the
organization”.
• According to IGNOU Module: “It is a process in which the right
person for the right post is procured”.
Types of recruitment:
• 1. Planned: arise from changes in organization and recruitment
policy.
• 2. Anticipated: by studying trends in the internal and external
organization.
• 3. Unexpected: arise due to accidents, transfer and illness.
Objectives of recruitment:
• To attract people with multi-dimensional skills and experiences that
suit the present and future organizational strategies.
• To induct outsiders with new perspective to lead the company.
• To infuse fresh blood at all levels of organization.
• To develop an organizational culture that attracts competent
people to the company.
• To search or head hunt people whose skills fit the company’s values.
• To devise methodologies for assessing psychological traits.
• To search for talent globally and not just within the company.
• To design entry pay that competes on quality but not on quantum.
• To anticipate and find people for positions that does not exist yet.
Purposes and importance:
• Determine the present and future requirements of the organization
in conjunction with the personnel planning and job analysis
activities.
• Increase the pool of job candidates with minimum cost.
• Help increase the success rate of the selection process reducing the
number of obviously under qualified or over qualified job
applicants.
• Help to reduce the probability that the job applicants, once
recruited and selected will leave the organization only after short
period of time.
Principles of recruitment
• Recruitment should be done from a central place. Eg: Administrative
officer/Nursing Service Administration.
• Termination and creation of any post should be done by
responsible officers, eg: regarding nursing staff the Nursing
superintendent along with her officers has to take the decision and
not the medical Superintendent.
• Only the vacant positions should be filled and neither less nor more
should be employed.
• Job description/ work analysis should be made before recruitment.
• Procedure for recruitment should be developed by an experienced
person.
• Recruitment of workers should be done from internal and external
sources.
• Recruitment should be done on the basis of definite qualifications
and set standards.
• A recruitment policy should be followed.
• Chances of promotion should be clearly stated.
• Policy should be clear and changeable according to the need.
Sources of recruitment:
• 1. Direct source
• 2. Indirect source
• Other Sources:
• I) Internal sources:-include present employees, employee referrals,
former employee and former applicants.
• II) External sources:- Sources external to an organization are
professional or trade associations, advertisements, employment
exchanges, college/university/institute placement services, walk-ins
and writer-ins, consultants, contractors etc.
Modern sources of recruitment:-
1. Walk-in
2. Consult in
3. Tele recruitment: Organizations advertise the job vacancies through
World Wide Web (WWW)
Recruitment process / steps:
• It was stated earlier, recruitment refers to the process of identifying
and attracting job seekers so as to build a pool of qualified job
applicants.
• The process comprises five inter-related stages, via:- Recruitment.
Steps of Process:
• 1.Planning
• 2.Strategy Development
• 3.Searching
• 4.Screening
• 5.Evaluation and control.
Factors effecting recruitment:
• All organization, whether large or small, do engage in recruiting activity,
though not to the same extent.
• This differs with:
• The employment conditions in the community where the organization is
located .
• The effects of past recruiting efforts which show the organization’s ability
to locate and keep good performing people.
• Working conditions and salary and benefit packages offered by the
organization- which may influence turnover and necessitate future
recruiting .
• The rate of growth of organization.
SELECTION
• “The selection process starts when applications are screened in the
personnel department. Selecting includes interviewing, the
employer’s offer, acceptance by the applicant, and signing of a
contract or written offer”.
• Those applicants who seem to meet the job requirements are sent
blank job-application forms and are directed to fill them up and
return the same for further action.
• The job application form is one of most important tools in the
selection process.
Definition:
• “It is the process of choosing from among applicants the best
qualified individuals”
Selection policies:
• 1. Application forms:-
• The issue and receipt of application forms is the administrative
responsibility.
• The information contained in the application form and reports
received in connection with them should be systematically
tabulated and filed as they are useful for evaluating the
effectiveness of the form, analyzing entrance standards, assessing
academic achievement with subsequent performance.
The application form should elicit the
following information:
• Name
• Address
• Age of the candidate
• Name of parents or guardians
• Occupation of father
• Details of education
• Details of employment
• Particular aptitudes or abilities
• It may also ask the employee to write short easy on his/her interests
to words nursing profession as a career.
• It should give details of any material she/he should submit such as a
medical certificate, evidence of date of birth etc.
• And should give the exact address to which it should be sent.
• The names of the persons given as references should be asked to
furnish information regarding the candidate’s character and
personality.
Steps in selection:
• The steps which constitute the employee selection process are the
following:
• Steps are:-
• 1. Pre-employment tests-written/oral/practical.
• 2. Interview
• 3. Interview by department head
• 4. Decision of administrator to accept or reject
• 5. Medical examination
• 6. Check of references/ Verification
• 7. Issue of appointment letter.
1.Pre-employment tests:
• To ensure selection of the most suitable candidates for various posts
pre-employment tests should be held in a systematic manner
wherever necessary & possible.
• These tests can broadly be divided in to four types:
• ◦ Tests of general ability- intelligence
• ◦ Tests of specific abilities- aptitude tests
• ◦ Tests of achievement-trade tests
• ◦ Personality tests- Tests of emotional stability, interest, values etc.
2. Interviewing
• Interviewing is the main method of appraising an applicant’s
suitability for a post.
• This is the most intricate and difficult part of the selection process.
• The employment interview can be divided into four parts:
• ◦ The warm-up stage ◦
• The drawing-out stage
• ◦ The information stage ◦
• The forming an-opinion stage Main objectives of an interview:
• For the employer to obtain all the information about the candidate
to decide about his suitability for the post.
• To give the candidate a complete picture of the job as well as of the
Organization.
• To demonstrate fairness to all candidates.
3.Interview by department head:
• In some organization, the selection committee consists of one
person from the personnel department, and one representative of
the head of the Institute/hospital.
• After the interviewing all the candidates, the selection committee
submits its recommendations for approval to the head of the
hospital, who is generally the hiring authority.
• 4. Decision of administrator to accept or reject
• 5. Medical examination:
• The medical examination of a prospective employee is an aid both to the employee and to
the management.
• The purpose of the medical examination is threefold:
• a) It is for the protection of the applicant himself to know whether that job will suit him or
not from the medical point of view.
• b) It is for the protection of the other employees so that they are not at risk of any
communicable or other disease which the prospective employee may have.
• c) It is for the protection of the employer as well, so that he may avoid selecting a wrong
person.
• The medical examination will eliminate an applicant whose health is below the standard or
one who is medically unfit
7.References/ Verification:
• The references provided by the applicant should be cross-checked
to ascertain his past performance and to obtain relevant information
from his past employer and others who have knowledge of his
professional competence.
• The references letters should be brief and should require as little
writing as possible by the person to whom it is sent. If it is directed
to a former employer, it should ask for the following data:
• Date of joining ,Date of leaving , Job title
• Last salary drawn
• Promotion/demotion, if any
• Unauthorized absentee record
• Reason for termination/ leaving
• Ability to work with others
• Dependability
• Emotional stability , Health conditions
• Any other information
7. Joining report by the employee:
• When new employees reports for joining, he should be given an
appointment letter, his job description and handbook of the
hospital/Institute.
• He/She should be asked to submit his joining report
Promotion:
• DEFINITION:
• “A change for better prospects from one job to another job is
deemed by the employee as a promotion”.
• OR
• “It is refers to the advancement an employee's rank or position in a
hierarchical structure”
The factors which are considered by
employees as implying promotion are:
• An increase in salary
• An increase in prestige
• An upward movement in the hierarchy of jobs
• Additional supervisory responsibility
• A better future
NATURE AND SCOPE OF PROMOTION:
• Seniority versus merits: There has been great deal of controversy
over the relative values of seniority and merit in any system of
promotion.
• Seniority will always remain a factor to be considered, but there be
much greater opportunity for efficient personnel, irrespective of
their seniority, to move up speedily if merit is used as the basis for
promotions.
• It is often said that at least for the lower ranks, seniority alone
should be the criterion for promotion. One cannot agree with this.
Promotion policy may include the
following:
• Charts and diagrams showing job relationships and ladder of
promotion should be prepared.
• There should be some definite system for making a waiting list after
identification and selection of those candidates who are to be
promoted as and when vacancies occur.
• All vacancies within the organization should be notified so that all
potential candidates may complete.
ADVANTAGES OF A SOUND PROMOTION
POLICY:
• It provides an incentive to employee to work more and show
interest in their work.
• They put in their best in their best and aim for promotion within the
organization.
• It develops loyalty amongst the employees, because a sound
promotion policy assures them of their promotions if they are found
fit
• It increases satisfaction among the employees.
• It generates greater motivation as they do not have to depend on
mere seniority for that advancement.
• Finally, increases the effectiveness of an organization
The following eight factors must be the
basis for promotion:
• Outstanding service in terms of quality as well as quantity
• Above average achievement in patient care and for public relations
• Experience
• Seniority
• Initiative
• Recognition by employee as a leader
 Particular knowledge and experience necessary for a vacancy
 Record of loyalty and cooperation
SOLUTION TO PROMOTION PROBLEMS:
• Difficult human relations problem can arise in promotion cases
• ◦ In promoting an employee to a better job, his salary should be at
least one step above his present salary.
• ◦ Specific job specifications will enable an employee to realize
whether or not his qualifications are equal other.
Superannuation
• Is a retirement fund (Including Pension)give to the employee at the
time of retirement.
• Superannuation Benefit:
• - A. Preserved benefit.
• B. Restricted non reserved benefit
• C. Unrestricted non reserved benefit
• A. Preserved benefit:- are benefit that must be retained in a
superannuation fund until the employee’s preservation age/retirement
age.
• B. Restricted non reserved benefit:-although not preserved, cannot be
accessed until an employee meets a condition of release, such as
terminating their employment in an employer superannuation scheme.
• C. Unrestricted non reserved benefit:- do not require the fulfilment of a
condition of release & may be accessed upon the request of the worker,
eg where a worker has previously satisfied a condition of release &
decided not to access the money in their superannuation fund