Unit: 1 Outline:: BBA II Semester Human Resource Management

BBA II Semester Human Resource Management
INTRODUCTION
UNIT: 1
OUTLINE:
Importance of human resources management; Meaning, Nature & Scope; Functions & role of
HR manager - Advisory & service functions to other department; HRM function planning,
Objectives & Policies; Organizing the HRM department;
INTRODUCTION
Organizations are made up of people and function through people. Without people
organizations cannot exist. The resources of men, money, materials and machinery are
collected, coordinated and utilized through people. These resources by themselves cannot
fulfill the objectives of an organization. They need to be united into a team. It is through the
combined efforts of people that material and monetary resources are effectively utilized for
the attainment of common objectives. Without human efforts no organization can achieve its
goals. All the activities of an organization are initiated and completed by the persons who
make up the organization. This resource is called human resource and it is the most important
factor of production.
According to L.F. Urwick, “Business houses are made or broken in the long run not by
markets or capital, patents or equipment but by men”. “Of all the resources manpower is the
only resource which does not depreciate, with the passage of time”.
From the nation’s point of view, human resources may be defined as “the knowledge, skills,
creative abilities, talents and aptitudes obtained in the population”.
From the organization’s point of view, human resources represent the people at work. They
are the sum-total of the inherent abilities, acquired knowledge and skills as exemplified in the
talents and aptitudes of its employees.
MEANING AND DEFINITIONS OF HUMAN RESOURCE MANAGEMENT
Human resource management (HRM) may be defined as a set of policies, practices and
programmes designed to maximize both personal and organizational goals. It is the process of
binding people and organizations together so that the objectives of each are achieved.
Asst.Prof.Swati Patil 1
According to Flippo, “Personnel management or human resource management is the planning

organizing, directing and controlling of the procurement, development, compensation,
integration, maintenance and reproduction of human resources to the end that individual,
organizational and societal objectives are accomplished.”
According to National Institute of Personnel Management of India, “Personnel management

is that part of management concerned with people at work and with their relationships within
the organization. It seeks to bring together men and women who make up an enterprise,
enabling each to make his own best contribution to its success both as an individual and as a
member of a working group.”
In the words of Jucius “Personnel management may be defined as that field of management
which has to do with planning, organizing and controlling the functions of procuring,
developing, maintaining and utilizing a labour force, such that the :
1. Objectives for which the company established are attained economically and effectively;
2. Objectives of all levels of personnel are served to the highest possible degree;
3. Objectives of society are duly considered and served.”
Human resource management is known by different names, e.g., personnel management,

manpower management, personnel administration, staff management etc.
OBJECTIVES OF HUMAN RESOURCE MANAGEMENT
To help the organizations attain its goals by providing well-trained and well-motivated
employees.
1. To employ the skills and knowledge of employees efficiently and effectively, i.e., to utilize
human resources effectively.
2. To enhance job satisfaction and self-actualization of employees by encouraging and

assisting every employee to realize his/her full potential.
3. To establish and maintain productive, self-respecting and internally satisfying working

relationships among all the members of the organization.
4. To bring about maximum individual development of members of the organization by

providing opportunities for training and advancement.
5. To secure the integration of all the individuals and groups with the organization by
reconciling individual/group goals with those of an organization.
6. To develop and maintain a quality of work life (QWL) which makes employment in the
organization a desirable and social situation.
7. To maintain high morale and good human relations within the organization.
8. To help maintain ethical policies and behavior inside and outside the organization.
9. To manage change to the mutual advantage of individuals, groups the organization and the
society.
10. To recognize and satisfy individual needs and group goals by offering appropriate
monetary and non-monetary incentives.
a) Attain economically and effectively the organizational goals.
b) Serve to the highest possible degree the individual goals.
c) Preserve and promote the general welfare of the community.
d) To sum up, human resource management seeks to accomplish societal, organizational and
individual goals.
NATURE / CHARACTERISTICS OF HRM
a) Comprehensive function (h) People-oriented
b) Action-oriented (i) Individual-oriented
c) Development-oriented (j) Pervasive function
d) Continuous function (k) Future-oriented
e) Challenging function (l) Science as well as art
f) Staff function (m) Young discipline
g) Interdisciplinary (n) Nervous system
IMPORTANCE OF HUMAN RESOURCE MANAGEMENT
The significance can be discussed at four levels-corporate, professional, social and national.
1. SIGNIFICANCE FOR AN ENTERPRISE - Human resource management can help an

enterprise in achieving its goals more efficiently and effectively in the following ways:
(a) Attracting and retaining the required talent through effective human resource planning,
recruitment, selection, placement, orientation, compensation and promotion policies.
(b) Developing the necessary skills and right attitudes among the employees through training
development, performance appraisal, etc.
(c) Securing willing co-operation of employees through motivation, participation, grievance

handling, etc.
(d) Utilizing effectively the available human resources.
(e) Ensuring that the enterprise will have a team of competent and dedicated employees.
2. PROFESSIONAL SIGNIFICANCE -
Effective management of human resources helps to improve the quality of work life. It
permits team work among employees by providing a healthy, working environment. It
contributes to professional growth in the following ways:
(a) Providing maximum opportunities for personal development of each employee.
(b) Maintaining healthy relationships between individuals, and different work groups.
(c) Allocating work properly.
3. SOCIAL SIGNIFICANCE -
Sound human resource management has a great significance for the society. It helps to
enhance the dignity of labour in the following ways:
(a) Providing suitable employment that provides social and psychological satisfaction to
people.
(b) Maintaining a balance between the jobs available and the jobseekers in terms of numbers,
qualifications, needs and aptitudes.
(c) Eliminating waste of human resources through conservation of physical and mental
health.
4. NATIONAL SIGNIFICATION - Human resources and their management plays a vital

role in the development of a nation. The effective exploitation and utilisation of a nation’s
natural, physical and financial resources require an efficient and committed manpower. There
are wide differences in development between countries with similar resources due to
differences in the quality of their people. Countries are underdeveloped because their people
are backward. The level of development in a country depends primarily on the skills, attitudes
and values of its human resources. Effective management of human resources helps to speed
up the process of economic growth which is turn leads to higher standards of living and fuller
employment.
As the central sub-system, HRM interacts closely and continuously with all other subsystems
of an organization. The quality of people in all subsystems depends largely upon the policies,
programmes and practices of the HRM subsystem. The quality of human resources
determines in turn the success of an organization.
Management is primarily dealing with human beings and human problems are present
everywhere. According to Lawrence Appley, “management is the development of people, not
the direction of things” In the modern era of automation and computerization, machine is
useless without competent people to run it.
Human resource management has become very significant in recent decades due to the
following factors:
a) Increase in the size and complexity of organization e.g. a multinational corporation

employing millions of persons.
b) Rapid technological developments like automation, computerization, etc.
c) Rise of professional and knowledgeable workers.
d) Increasing proportion of women in the workforce.
e) Growth of powerful nationwide trade unions.
f) Widening scope of legislation designed to protect the interests of the working class.
g) Revolution in information technology that might affect the work force.
h) Rapidly changing jobs and skills requiring long-term manpower planning.
i) Growing expectations of society from employers.
j) Rising costs and shortage of highly trained labour.
FUNCTIONS OF HUMAN RESOURCE MANAGEMENT
MANAGERIAL FUNCTIONS
Managing people is the essence of being a manager. Like other managers, a human resource
manager performs the function of planning, organizing, directing and controlling.
1. PLANNING - A plan is a predetermined course of action. Planning is the process of

deciding the goals and formulating policies and programmes to achieve the goals.
Planning involves forecasting and research. Forecasting implies scientific anticipation
of the future environment. Human resource management involves forecasting needs
for human resources, predicting trends in labour market, wages, union demands, etc.
and their impact on the organization. Planning helps to face successfully the changes
that are likely to take place in future. It bridges the gap between where we are and
where we want to go. Without planning events are left to change. Planning is the
means to manage change. Planning today avoids crisis tomorrow. In the area of
human resources management, planning involves deciding personnel goals,
formulating personnel policies and programmes, preparing the human resource
budget, etc.
2. ORGANIZING - In order to implement the plans, a sound organization structure is

required. Organizing is the process of allocating tasks among the members of the group,
establishing authority-responsibility relationships among them and integrating their activities
towards the common objectives. In this way a structure of relationships among jobs,
personnel and physical factors is developed. The right organization structure is the foundation
of effective management because without it the best performance in all other areas will be
ineffective. Organization is the framework through which management directs, controls and
coordinates the efforts of people.
3. DIRECTING - Directing is the process of motivating, activating, leading and supervising

people. Directing includes all those activities by which a manager influences the action of
subordinates. It involves getting others to act after all preparations have been made. Directing
is the heart of the management process because it is concerned with initiating action. It helps
to secure the willing and effective cooperation of employees for attaining organizational
goals. A manager can tap the maximum potential of employees through proper direction.
Directing also helps in building sound individual and human relations in the organization.
4. CONTROLLING - It implies checking, verifying and regulation to ensure that everything

occurs in conformity with the plans adopted and the instructions issued. Such monitoring
helps to minimize the gap between desired results and actual performance. Controlling the
management of human resources involves auditing training programmes, analyzing labour
turnover records directing morale surveys, conducting separation interviews and such other
means.
OPERATIVE FUNCTIONS
The operative or service functions of human resource management are the tasks which are
entrusted to the personnel department. These functions are concerned with specific activities
of procuring, developing, compensating and maintaining an efficient work force.
1. PROCUREMENT FUNCTION: It is concerned with securing and employing the right

kind and proper number of people required to accomplish the organizational objectives. It
consists of the following activities.
(a) Job Analysis: It is the process of studying in details the operations and responsibilities
involved in a job so as to identify the nature and level of human resources required to
perform the job effectively. Job descriptions and job specifications are prepared with the help
of information provided by job analysis.
(b) Human Resource Planning: It is the process of estimating the present and future
manpower requirements of the organization, preparing inventory of present manpower and
formulating action programmes to bridge the gaps in manpower.
(c) Recruitment: It is the process of searching for required personnel and stimulating them to
apply for jobs in the organization. A proper balance should be maintained between the
internal and external sources of recruitment.
(d) Selection: It implies judging the suitability of different candidates for jobs in the
organization and choosing the most appropriate people.
(e) Placement: It means assigning suitable jobs to the selected candidates so as to match
employee qualifications with job requirements:
(f) Induction or Orientation: It involves familiarizing the new employees with the company,
the work environment and the existing employees so that the new people feel at home and
can start work confidently.
2. DEVELOPMENT FUNCTION: Human resource development is the process of

improving the knowledge, skills, aptitudes and values of employees so that they can perform
the present and future jobs more effectively. This function comprises the following activities.
(a) Performance and Potential Appraisal: It implies systematic evaluation of employees with
respect to their performance on the job and their potential for development.
b) Training: It is the process by which employees learn knowledge, skills and attitudes to
further organizational and personal goals.
(c) Executive Development: It is the process of developing managerial talent through

appropriate programmes.
(d) Career Planning and Development: It involves planning the career of employees and
implementing career plans so as to fulfill the career aspirations of people. It involves mobility
of personnel through promotions and transfer.
3. COMPENSATION FUNCTION: It refers to providing equitable and fair remuneration to

employees for their contribution to the attainment of organizational objectives. It consists of
the following activities:
(a) Job Evaluation: It is the process of determining the relative worth of a job
(b) Wage and Salary Administration: It implies developing and operating a suitable wage and
salary programme. Surveys are conducted to determine wage and salary structure for various
jobs in the organization.
(c) Bonus: It involves payment of bonus under the payment of Bonus Act, 1965 as well as
nonstatutory bonus and other incentives.
4. INTEGRATION FUNCTION: It is the process of reconciling the goals of the

organization with those of its members. Integration involves motivating employees through
various financial and non-financial incentives, providing job satisfaction, handling employee
grievances through formal grievance procedures, collective bargaining, workers’ participation
in management, conflict resolution, developing sound human relations, employee
counselling, improving quality of work life, etc. Personnel records and research are also
important elements of the maintenance function. The managerial functions and operating
functions of human resource management are performed in conjunction with each other. Fig.
shows the various functions of human resource management.
5. MAINTENANCE FUNCTION: It is concerned with protecting and promoting the

physical and mental health of employees. For this purpose several types of fringe benefits
such as housing, medical aid, educational facility, conveyance facility, etc. are provided to
employee. Social security measures like provident fund, pension, gratuity, maternity benefit,
injury/ disablement allowance, group insurance, etc. are also arranged. Health, safety and
welfare measures are designed to preserve the human resource of organization.
ROLE OF HR MANAGER
1. As a specialist
2. As an information source
3. As a change agent
4. As a controller
5. As a liaison man
6. As a housekeeper
7. As a firefighter
STATUS OF HUMAN RESOURCE MANAGER
1. The policeman
2. The law man
3. The catering man
4. The welfare man
5. The productivity man
McKinsey 7S Framework
The McKinsey 7S Framework is a management model developed by well-known business

consultants Robert H. Waterman, Jr. and Tom Peters (who also developed the MBWA--
"Management By Walking Around” motif, and authored In Search of Excellence) in the
1980s. This was a strategic vision for groups, to include businesses, business units, and
teams.
The 7S are structure, strategy, systems, skills, style, staff and shared values.
The model is most often used as a tool to assess and monitor changes in the internal situation
of an organization.
The model is based on the theory that, for an organization to perform well, these seven
elements need to be aligned and mutually reinforcing. So, the model can be used to help
identify what needs to be realigned to improve performance, or to maintain alignment (and
performance) during other types of change.
The basic premise of the model is that there are seven inter nal aspects of an organization
that need to be aligned if it is to be successful
Hard Elements Soft Elements

a) Strategy (a) Shared Values
b) Structure (b) Skills
c) Systems (c) Style
(d) Staff
HUMAN RESOURCE PLANNING
“Human resource planning has been defined as the process by which management determines
how an organization should move from its current manpower position to its desired
manpower position. Through it management strives to have the right number and the right
kind of people at the right places. At the right time, doing things which result in both the
organization, and the individual receiving, maximum long-range benefit.” Human resource
planning is one of the most important elements in a successful HRM program. A survey of
chief executives, for example, found that 85 percent listed human resource planning as one of
the critical management undertaking of this decade.
To ensure that people are available to provide the continued smooth development of an
organization, organizations engage in human resource planning. The purpose of human
resource planning is to assess where the organization is, where it is going, what implications
these assessments have on future supplies of and demands for human resources.
Human Resource Planning is a systematic process of forecasting both the prospective demand
for and supply of manpower, and employment of skills with the objectives of the
organization. It can also be termed as the method of reviewing the manpower necessities to
ensure that right kind of skills is made available to the organization.
The main purpose of HRP is to set the goals and objectives of the company. In other words, it
is to have the precise number of employees, with their skills matching the requirements of the
organization, so that the organization can move towards its goals. Chief objectives of Human
Resource Planning are as follows:
 Guarantee ample supply of resources, whenever there is a need for it.
 Make sure that the current manpower in the company is being used properly.
 To foresee the potential requirements of manpower at various skill levels.
 Evaluate excess or scarcity of resources that are available at a given point of time.
 Predict the impact of technological changes on the resources as well as on the kind of
jobs they do.
 Manage the resources that are already employed in the organization.
 Ensure that there is a lead time available to pick and train any supplementary human
resource.
NEED FOR HUMAN RESOURCE PLANNING
The need of HRP may arise because of the following reasons:
1. In India, unemployment is a grave concern. Scarcity of manpower and that too with the
required skill sets and competence, has given rise for need of Human Resource Planning.
2. It comes handy for smooth and continuous supply of workers when a huge number of
employees is retiring, or leaving the company or maybe they are incapable of working
due to psychological or physical ailments.
3. There is a need for Human Resource Planning when there is an increase in employee
turnover, which is obvious. Some examples of this turnover are promotions, marriages,
end of contract, etc.
4. Technological changes lead to a chain of changes in the organization, right from skill
sets product methods and administration techniques. These changes lead to an overall
change in the number of employees required and with entirely different skill set. It is
here that the Human Resource Planning helps the organization deal with the necessary
changes.
5. Human Resource Planning is required to meet the requirements of diversification and

growth of a company.
6. There is a need for Human Resource Planning in downsizing the resources when there is
a shortage of manpower. Similarly, in case of excess resources, it helps in redeploying
them in other projects of the company.
Importance of Human Resource Planning
After the need for HRP, it is apt to discuss the importance of it. A few are mentioned below.
 It gives the company the right kind of workforce at the right time frame and in right
figures.
 In striking a balance between demand-for and supply-of resources, HRP helps in the
optimum usage of resources and also in reducing the labor cost.
 Cautiously forecasting the future helps to supervise manpower in a better way, thus
pitfalls can be avoided.
 It helps the organization to develop a succession plan for all its employees. In this way,
it creates a way for internal promotions.
 It compels the organization to evaluate the weaknesses and strengths of personnel

thereby making the management to take remedial measures.
 The organization as a whole is benefited when it comes to increase in productivity,

profit, skills, etc., thus giving an edge over its competitors.
HUMAN RESOURCE PLANNING PROCESS
In any Human Resource Planning model there are three key elements which the management
should adhere to:
i. Forecasting recruitment needs: There are a number of ways in forecasting your business
needs, to know the exact number of employees required to run the business. Factors to
be considered are the economical situation of any given country, internal and external
factors of an organization and the demand for the products.
ii. Evaluate Supply: In estimating this, there are two aspects, one is the evaluation of the
internal resources and the other is the prospective or external resources. Among the two,
external factors require extra care, these include education, unemployment rate and law
that is in existence. Evaluating these factors very closely will help the organization in
filling the right resources at the right time with the right skill set.
iii. Supply and demand balance: This element of Human Resource Planning is very
important, as striking a balance between these two forces will help the organization in
understanding if there is shortage or excess of employees available in a particular group.
It also helps in understanding as to the need of full time or part time needs of the
organization.
DEFINITION
Human resource planning is the process by which an organization ensures that it has the right
number and kinds of people, at the right places, at the right time capable of effectively and
efficiently completing those tasks that will help the organization achieve its overall
objectives.
In the words of Stainer, “Manpower planning is the strategy for the acquisition, utilisation,
improvement and preservation of an organisation’s human resources. It is aimed at
coordinating the requirements for the availability of different types of employees”.
”According to Beach. “Human resource planning is a process of determining and assuming

that the organisation will have an adequare number of qualified persons, available at the
proper times, performing jobs which meet the needs of the enterprise and which provide
satisfaction for the individuals involved.” To sum up, human resource planning is the process
of determining manpower needs and formulating plans to meet these needs.
An analysis of the above definition reveals the following characteristics of human resource
planning.
1. Forward looking or future-oriented.
2. On-going or continuous process.
3. Human resource planning is an integral part of corporate planning.
4. The basic purpose of human resource planning is to make optimum utilisation of an

organisation’s current and future human resources.
5. It has both quantitative and qualitative aspects.
6. It is a systems approach to human resources.
7. Human resource plans can be long-term as well as short term.
8. It is a two-phased process involving calculation about the demand for and supply of human
resources.
OBJECTIVES
The main objectives of human resource planning are as follows:
1. To ensure optimum use of existing human resources.
2. To forecast future requirements for human resources.
3. To provide control measures to ensure that necessary human resources are available as and
when required.
4. To link human resource planning with organizational planning.
5. To assess the surplus and shortage of human resources.
6. To anticipate the impact of technology
7. To determine levels of recruitment and training.
8. To estimate the cost of human resources and housing needs of employees.
9. To provide a basis for management development programmes
10. To facilitate productivity bargaining.
11. To meet the needs of expansion and diversification programmes.
IMPORTANCE OF HRP
Effective human resource planning offers the following benefits:
To carry on its work and to achieve its objectives, every organization requires employees
with adequate knowledge, experience and aptitudes;
 Human resource planning is helpful in selection and training activities.
 It ensures that adequate numbers of persons are selected and trained well in advance
to fill future job vacancies in the organization.
 It provides the required number and quality of human resources at all times.
1. Human resource planning identifies gaps in existing manpower in terms of their quantity
and talent. Suitable training and other steps can be taken in time to fill these gaps. Existing
manpower can be developed to fill future vacancies.
2. There is need to replace employees who retire, die, resign and become incapacitated due to
injury. Provision for replacement of personnel can be made through human resource
planning.
3. Human resource planning facilitates the expansion and diversification of an organization.

In the absence of human resource plans, the required human resources will not be available to
execute expansion and diversification plan at the right time.
4. Human resource planning is helpful in effective utilization of technological progress. To

meet the challenge of new technology existing employees need to be retrained and new
employees may be recruited.
5. Human resource planning is useful in anticipating the cost of human resources which
facilitates the budgeting process. It also helps in controlling human resource costs through
effective utilization. Through proper manpower planning, management can avoid both
shortage and surplus of manpower and thereby control labour costs.
6. Human resource planning facilitates career succession planning in the organization. It

provides enough lead time for internal succession of employees to higher positions through
promotions. Manpower planning also contributes to management succession and
development.
7. Human resource planning helps in planning for physical facilities like canteen, staff
quarters, dispensary and school for the staff and their children.
8. At the national level, human resource planning facilitates educational reforms,

geographical mobility of talent and employment generation.
PROCUREMENT & DEVELOPMENT FUNCTIONS
UNIT: 2
OUTLINE:
Job analysis;
Job description;
Job specifications;
Recruitment, selection, placement and induction & socialization
JOB ANALYSIS
Job analysis is a formal and detailed study of jobs. It refers to a scientific and systematic
analysis of a job in order to obtain all pertinent facts about the job. It is essentially a process
of collecting and analysing all pertinent data relating to a job.
It is a process of:-
Understanding the “what” and “why” of work being done.
Gathering facts that would enable others to make judgements about the work being done.
Job analysis is the procedure for determining the duties and skill requirements of a job and
the kind of person who should be hired for it.
Organizations consist of positions that have to be staffed. Job analysis is the procedure
through which you determine the duties of these positions and the characteristics of the
people who should be hired for them .The analysis produces information on job requirements,
which is then used for developing job descriptions (what the job entails) and job
specifications (what kind of people to hire for the job).
WHY IS JOB ANALYSIS REQUIRED
What is Job Analysis -Job Analysis is obtaining info about jobs.
Why is Job Analysis important - Without sufficient knowledge of what employees do,
organizations cannot develop other human resource practices and procedures.
Job analysis is a systematic procedure for studying jobs to determine their various elements
and requirements. The job analysis for a particular position typically consists of two parts.
Job Description is a list of the elements that make up a particular job.
Job Specification is a list of the qualifications required to perform particular job.
JOB DESCRIPTION VS. JOB SPECIFICATION
Job Description - written narrative describing activities performed on a job; includes

information about equipment used and working conditions under which job is performed.
Job Specification - outlines specific skills, knowledge, abilities, physical and personal
characteristics necessary to perform a job - What about physical and personal characteristics?
Strength, patience, intestinal fortitude, risk-taker.
JOB ANALYSIS HELPS TO FIND FOLLOWING INFORMATION
1.Work activities
2. Human behaviours
3. Machines, tools, equipment, and work aids used
4. Performance standards
5. Job context
6. Human requirements.
TYPES OF INFORMATION GATHERED
Work Activities
Work activities performed
How, why, when activity is performed
Human Behaviours
Communicating, decision making, and
Other physical job demands, e.g., lifting Tools, equipment, etc used
Products made
Knowledge dealt with / applied
Services rendered
Performance standards
Quantity, quality, speed
Used to evaluate employee performance
Job Context
Physical work conditions
Work group
Incentives for doing job
Human Requirements
Job-related knowledge, skills
Personal attributes, e.g. personality, aptitudes
AREAS IN WHICH JOB ANALYSIS INFORMATION IS USED
RECRUITMENT AND SELECTION
Job analysis provides information about what the job entails and what human characteristics
are required to carry out these activities. Such job description and job specification
information is used to decide what sort of people to recruit and hire.
COMPENSATION
Job analysis information is also essential for estimating the value of and appropriate
compensation for each job. This is so because compensation. (such as salary and bonus)
usually depends on the job's required skill and education level, safety hazards, degree of
responsibility and so on-all factors that are assessed through job analysis. Job analysis
provides the information determining the relative worth of each job so that each job can be
classified.
ENSURE COMPLETE ASSIGNMENT OF DUTIES
The job analysis is also useful for ensuring that all the duties that have to be done are in fact
assigned to particular positions. For example, in analysing the current job of your company's
production manager, you may find she reports herself as being responsible for two dozen or
so specific duties including planning weekly production schedules, purchasing raw materials,
and supervising the daily activities of each of her first-line supervisors.
TRAINING
Job analysis information is also used for designing training and development programs
because the analysis and resulting job description show the skills-and therefore training-that
are required.
PERFORMANCE APPRAISAL
A performance appraisal compares each employee's actual performance with his or her
performance standards. It is often through job analysis that experts determine the standards to
be achieved and the specific activities to be performed.
OBJECTIVES OF JOB ANALYSIS
1. Job redesign 5. Work standards
2. Recruitment 6. Selection
3. Training 7. Performance appraisal
4. Job evaluation 8. Safety
USES (SIGNIFICANCE) OF JOB ANALYSIS
1. Organizational design 7. Career path planning
2. Human resource planning 8. Job design
3. Recruitment and selection 9. Job evaluation
4. Placement and orientation 10. Labour relations
5. Training and development 11. Employee counselling
6. Performance appraisal 12. Health and safety
AREAS OF APPLICATION FOR JOB ANALYSIS
1. Job description 6. Development
2. Job specification 7. Compensation
3. Job evaluation 8. Integration
4. Performance appraisal 9. Maintenance
5. Procurement
PROCESS OF JOB ANALYSIS
1. Organizational analysis 5. Understand job design

2. Organizing job analysis programme 6. Collection of data
3. Deciding the uses of job analysis 7. Developing a job description
information 8. Preparing a job specification
4. Selecting representative jobs for analysis
TECHNIQUES OF JOB ANALYSIS (METHODS OF DATA COLLECTION)
1. Job performance 4. Personal observation
2. Interview 5. Questionnaire
3. Critical incidents 6. Log records
JOB DESCRIPTION MEANING
It is a factual and organized statement describing the job in terms of its title, location, tasks,
and duties, responsibilities, working conditions, hazards and relationship with other jobs. It
tells us what, how and why it is to be done. Job Description is a functional description of
what the job entails. And define the purpose and scope of a job. It is a written record it
contains title, location, duties, responsibilities, working conditions, hazards and relationship
with other jobs.
USES
1. Job grading and classification
2. Placement of new employees on a job
3. Orientation of new employees
4. Promotions and transfers
5. Defining and outlining career paths
6. Redressal of grievances
7. Investigating accidents
8. Locating faulty work procedures and duplication of papers
9. Work measurement and work improvement
10. Defining the limits of authority
11. Health and fatigue studies
12. Developing performance standards
13. Establishing a common understanding of a job between management and workers
14. Determining jobs for occupational therapy
15. Employee counselling and vocational guidance
16. Organizational change and development
CONTENTS OF JOB DESCRIPTION
1. Job identification 5. Social environment
2. Job summary 6. Machines, tools and equipment
3. Job duties and responsibilities 7. Supervision 8. Relation to other jobs
4. Working conditions
GUIDELINES FOR PREPARING JOB DESCRIPTION
1. Give a clear, concise and readily understandable picture of the whole job.
2. Describe in sufficient detail each of the duties and responsibilities.
3. Avoid statements of opinion.
4. Examples of work performed may be quoted.
5. Indicate the extent of supervision received and given.
6. Ensure that a new employee can understand the job by reading the job description.
JOB DESCRIPTION AND JOB SPECIFICATION
Job descriptions describe the job and not the individual who fills the job. They are the result
of job analysis within a given organization and are essential to the selection and evaluation of
employees. Job advertisements or postings are based on the job description. The character of
the organization is the basis for the description of positions. Information about the
organization might include -
a) Name of Company b) Main Product(s) and/or Service(s)
c) Location d) Number of Employees
e) Company Structure f) Names of Officers
g) Hours of Work
Job analysis:
Job analysis is the systematic assembly of all the facts about a job. The purpose is to study
the individual elements and duties. All information related to the salary and benefits, working
hours and conditions, typical tasks and responsibilities is required for the job analysis.
The results of job analysis are job description and job specification. is the systematic
assembly of all the facts about a job. The purpose is to study the individual elements and
duties. All information related to the salary and benefits, working hours and conditions,
typical tasks and responsibilities is required for the job analysis. The results of job analysis
are job description and job specification.
Job description:
Job description is a written statement that defines the duties, relationships and results
expected of anyone in the job. It is an overall view of what is to be done in the job. Typically
it includes is a written statement that defines the duties, relationships and results expected of
anyone in the job. It is an overall view of what is to be done in the job.
Typically it includes
a) Job Title
b) Date
c) Title of immediate supervisor
Job Specification:
Job Specification is an analysis of the kind of person it takes to do the job, that is to say, it
lists the qualifications. Normally, this would include is an analysis of the kind of person it
takes to do the job, that is to say, it lists the qualifications.
CONTENTS OF JOB SPECIFICATION
It is a statement of minimum acceptable human qualities necessary to perform a job. It is an

important tool in the selection process & evaluation.
a) Educational Requirement
b) Experience
c) Specific knowledge/Skill Requirement
d) Personality Requirement
e) Responsibility
RECRUITMENT
According to Flippo, “'Recruitment is the process of searching for prospective employees and
stimulating and encouraging them to apply for jobs in an organization”.
In the words of Yoder, “Recruitment is a process to discover the sources of manpower to

meet the requirements of the staffing schedule and to employ effective measures for
attracting that manpower in adequate numbers to facilitate effective selection of an efficient
working force”.
Recruitment needs are of three types planned, anticipated and unexpected. Planned needs
arise from changes in organization and retirement policy. Resignations, deaths, accidents and
illness give rise to unexpected needs. Anticipated needs refer to those movements in
personnel, which an organization can predict by studying trends in the internal and external
environments.
FEATURES
1. Recruitment is a process or a series of activities rather than a single act or event. The
activities in this process are described under the next heading.
2. Recruitment is a linking activity as it brings together those with jobs (employer) and those
seeking jobs (prospective employees).
3. Recruitment is a positive function as it seeks to develop a pool of eligible persons from

which most suitable ones can be selected.
4. The basic purpose of recruitment is to locate the sources of people required to meet job
requirements and attracting such people to offer them for employment in the organization.
5. Recruitment is an important function as it makes it possible to acquire the number and type
of persons necessary for the continued functioning of the organization. Careful recruitment of
employees is particularly important in India because the changes of mismatching the job and
the person are greater. Due to widespread unemployment the job seeker tends to accept any
job irrespective of his suitability.
6. Recruitment is a pervasive function as all organizations engage in recruitment activity. But

the volume and nature of recruitment varies with the size, nature and environment of the
particular organization.
7. Recruitment is a two-way process. It takes a recruiter and a recruiter. Just as the recruiter
has a choice whom to recruit or not, similarly the prospective employee can choose for which
organization to apply for a job.
8. Recruitment is a complex job because too many factors affect it, e.g., image of the
organization, nature of jobs offered, organizational policies working conditions, past
recruitment record, employment conditions in the community, trade union attitudes, labour
laws, culture and environment, Government policies of these factors serve as constraints
restricting the freedom of management in recruitment.
PROCESS OF RECRUITMENT
Recruitment process consist of following steps –
1. RECRUITMENT POLICY- It specifies the objectives of recruitment and provides a

framework for the implementation of the recruitment programme. It also involves the
employer’s commitment to some principles as to find and employ the best qualified person
for each job, to retain the most promising of those hired, etc. It should be based on the goals,
needs and environment of the organization.
2. RECRUITMENT ORGANIZATION- The recruitment may be centralized like public

sector bank or decentralized. Both practices have their own merits. The choice between the
two will depend on the managerial philosophy and the particular needs of the organization
3. RECEIVING OF REQUISITION – The personnel department receives requisition for

recruitment from any department of the company. Personnel requisition contain details about
the position to be filled, number of persons to be recruited, the qualifications and duties of
persons, terms and conditions of employment etc.
4. ASSESSMENT OF REQUIREMENT- The next step is assessment of personnel

requirement through job description and job specifications.
5. SOURCES OF RECRUITMENT- Locating and developing the various sources of

recruitment may be classified as internal and external. These have its own merits and
demerits.
6. IDENTIFYING PROSPECTIVE EMPLOYEE- Identifying the prospective employees

with particular combinations of skill, experience, education and other personal attributes.
7. METHODS OF RECRUITMENT- Recruitment techniques are the means to communicate

the information about the organization, the job, the term & condition of service, applicant
laws and regulation to encourage the identify candidate to apply for jobs in the organization.
8. EVALUATION OF RECRUITMENT PROGRAMME- The recruitment process must be

evaluated periodically. The criteria for evaluation may consist of cost per applicant, the hiring
ratio, performance appraisal, tenure of stay etc. After evaluation necessary improvement
should be made in the recruitment programme.
SOURCES OF RECRUITMENT
A) INTERNAL SOURCES:
1. TRANSFERS: According to Pigors & Meyers Consider transfer as "the movement of an

employee from one job to another on the same occupational level and at about the same level
of wages or salary" No appreciable change in task or responsibility is expected,
Scott and others define transfer as “the movement of an employee from one job to another. It
may involve a promotion, demotion or no change in job status other than moving from one
job to another."
Types of Transfer: Transfers are of many types. It may be a reward transfer or a punishment
transfer. Transfers can be classified as production transfers, Replacement transfers,
Versatility transfers, shift transfers or remedial transfers. They can be temporary or
permanent. However, it is better to have a clear-cut and flexible transfer policy. Otherwise, it
may lead to a lot of heart- burning among the affected employees.
2. PROMOTIONS: A few companies do have a clear cut policy while certain organizations
issue circulars as and when they need. Many companies develop policies over a period of
time through settlements and agreements with the workers/unions. In promoting employees
consideration should be given for establishment of the horizontal or vertical promotion. The
desirability of securing assistants who complement rather than supplement their superiors is
the major point in a successive plan which is an integral part of manpower planning.
DEFINITIONS OF PROMOTION
Pigors & Meyers define promotion as "the advancement of an employee to a better job -
better in terms of greater respect of pay and salary. Better houses of work or better location or
better working conditions-also may characterize the better job to which an employee seeks
promotions, but if the job does not involve greater skill or responsibilities and higher pay, it
should not be considered a promotion." This definition takes into consideration only a
Vertical promotion.
According to Dale Yoder, it is a "movement to a position in which responsibilities and

presumably the prestige are increased. Promotion involves an increase in rank ordinarily;
promotion is regarded as a change that results in higher earnings, but increased earnings are
essential in a promotion." This definition talks of both vertical and horizontal promotions.
Koontz O`Donnel says, "a change within the organization to a higher position with greater
responsibilities and used for more advanced skills than in previous position. It usually
involves higher status and increase in pay."
Promotions can be from within or can be from outside depending upon the need of the
organization as both have certain advantages and disadvantages. So also are the arguments
for and against the concept of promotion on seniority or merit.
A wise policy which is followed by many organizations is a proper blending of both.

Opposite to promotion is demotion. It is more as a punishment. In certain cases it can be on
cost reduction considerations.
3. JOB ROTATION: Job rotation involves the movement of employees through a range of
jobs in order to increase interest and motivation. Job rotation can improve “multi-skilling”
but also involves the need for greater training. In a sense, job rotation is similar to job
enlargement. This approach widens the activities of a worker by switching him or her around
a range of work.
This approach allows the manger to operate in diverse roles and understand the different
issues that crop up. If someone is to be a corporate leader, they must have this type of
training. A recent study indicated that the single most significant factor that leads to leader’s
achievement was the variety of experiences in different departments, business units, cities,
and countries.
An organized and helpful way to develop talent for the management or executive level of the
organization is job rotation. It is the process of preparing employees at a lower level to
replace someone at the next higher level. It is generally done for the designations that are
crucial for the effective and efficient functioning of the organization. Job rotation may offer
the advantage of making it easier to cover for absent colleagues, but it may also reduce'
productivity as workers are initially unfamiliar with a new task.
WHY IS JOB ROTATION IMPORTANT?
Job rotation is seen as a possible solution to two significant challenges faced by business:
(1) Skills shortages and skills gaps, and
(2) Employee motivation
Skills shortages occur when there is a lack of skilled individuals in the workforce. Skills gaps
occur when there is a lack of skills in a company’s existing workforce which may still be
found in the labour force as a whole.
4. INTERNAL JOB POSTING:
These directions provide guidance for employees who wish to apply for internal jobs within
your organization. They accompany the two-part internal job application that are pages two
and three of this feature. Please feel free to use and/or modify the format to meet your
organization's needs. Internal Job Posting is promoting talent within the company by means
of posting jobs either for lateral placement or vertical placement.
B) External Sources:
External sources of recruitment lie outside the organization. These are as follows: 1. Press
Advertisements: Advertisements in newspapers and journals is a widely used source of
recruitment. The advantage of this method is that it has a very wide reach. One advertisement
in a leading daily can cover millions of persons throughout the country. Cost per person is
very low. This method can be used for clerical, technical and managerial jobs. If the company
wants to keep its identify secret only a box number can be given for reply. Considerable
details about the job to be filled and qualifications required can be given in the advertisement
to facilitate self-screening. However, this method may bring in a large number of applications
from unsuitable candidates. The company has to waste considerable time and efforts in
sorting out applicants.
2. Recommendations / Employee Referral: Office bearers of trade unions are often aware of
the suitability of candidates. Management can enquire these leaders for suitable jobs. In some
organizations there are formal agreements to give priority in recruitment to the candidates
recommended by trade unions. Relatives and friends of employees are given priority in
recruitment in some companies. Public sector undertakings give preference to local people
(sons of the soil) in recruitment particularly at lower and middle levels jobs. In this source,
some sort of preliminary screening takes place by the employee/union recommending the
candidate.
3. Recruiting Agencies/ Placements Agencies: Several private consultancy firms e.g. A.F.
Ferguson Associates, Price Waterhouse, ABC consultants, etc. Perform recruiting function on
behalf of client companies by charging fee. These agencies are particularly suitable for
recruitment of executives and specialists. They perform all the functions of recruitment and
selection so that the client is relieved of this burden. But the cost of recruitment through these
agencies is quite high.
4. Labour Contractors/ Temporary help services: Manual workers can be recruitment through
contractors who maintain close links with the sources of such workers. This source is often
used to recruit labour for construction jobs. The disadvantage of this source is that when the
contractor leaves the organization, people employed through him also go.
5. Education and training Institutions: Various institutes like IIMs, IITs, engineering colleges,
medical colleges, it is and universities are a good source for recruiting well qualified
executives, engineers, medical staff, pharmacists, chemists, etc. They provide facilities for
campus interviews and placement. Good institutions have placement cells/officers to serve as
liaison between the employers and the students. This source is known as Campus recruitment.
6. Employment Exchanges: Government of India has established public employment

exchanges throughout the country. These exchanges provide information about job vacancies
to the jobseekers and help employers in identifying suitable candidates. They contain a data
bank of candidates for different types of jobs. Whenever they get requisition/notice from
employers, the concerned candidates are informed. A list of such persons is also sent to the
employer. The Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959
makes it obligatory for both public sector and private sector enterprises to fill certain types of
vacancies through employment exchanges. Many of these exchanges also provide vocational
guidance and job counselling to jobseekers.
7. Gate Recruitment/ Walk-in’s: Workers may be recruited at the factory gate or through
walk-in. Usually employee drops their profile by visiting the organization where they are
willing to work despite of the fact of availability of vacancy over there. Regularly there are
many-interested profiles which reaches either direct visit or this data can be used once there
is any vacancy in organization. The advantage is that HR already knows that these candidates
are interested in working so do not need to check the interest part.
8. Head Hunting: Headhunting refers to the approach of finding and attracting the best
experienced person with the required skill set. Headhunting involves convincing the person to
join your organization.
METHODS OF RECRUITMENT
Recruitment methods or techniques are the means by which an organization establishes

contact with potential candidates, provides them necessary information and encourages them
to apply for jobs. These methods are different form the sources of recruitment. Sources are
the locations where prospective employees are available. On the other hand, methods are
ways of establishing links with the prospective employees. Various methods employed for
recruiting employees may be classified into the following categories:
Direct Methods: Under direct recruitment scouting, employee contacts, manned exhibits and
waiting lists are used. In scouting, representatives of the organization are sent to educational
and training institutions. These travelling recruiters exchange information with the students
clarify their doubts, stimulate them to apply for jobs, conduct campus interviews and short
list candidates for further screening.
They act in cooperation with the placement office/head of the institution. Another direct
method is to ask employees of the organization to contact the public and tell about the
vacancies. Manned exhibits involve sending recruiters to seminars and conventions, setting
up exhibits at fairs and using mobile offices to go to the desired centers. Some organizations
use waiting lists of candidates who have indicated their interest in jobs in person, through
mail or over telephone.
Indirect Methods: Advertisements in newspapers, journals, on the radio and television are
used to publicise vacancies. A well thought out and clear advertisement enables candidates to
assess their suitability so that only those possessing the requisite qualifications will apply.
This method is appropriate when the organization wants to reach out to a large target group
scattered geographically. Whenever necessary a blind advertisement can be given in which
only box no. is given without identifying the firm. Considerable details about jobs to be filled
and qualifications required can be given in the advertisements. But a large number of
applicants may be unsuitable.
Third Party Methods: Various agencies can be used to recruit personnel. Public
employment exchange, management consulting firms, professional societies, temporary help
societies, trade unions, and labour contractors are the main agencies. In addition, friends and
relations of existing staff and deputation method can also be used.
Internet recruitment: This is one of the important and popular means of recruitment.
SELECTION IS DIFFERENT FROM RECRUITMENT
a) Recruitment technically precedes selection.
b) Recruitment is positive whereas selection is negative.
c) Recruitment involves prospecting or searching whereas selection involves comparison and

choice of candidates.
“Selection is the process of evaluating the qualifications, experience, skill, knowledge, etc, of
an applicant in relation to the requirements of the job to determine his suitability for the job.”
The selection procedure is concerned with securing relevant information from applicants and
selecting the most suitable among them, based on an assessment of how successful the
employee would be in the job, if he were placed in the vacant position.
OBJECTIVES
1. Competent Work Force
2. Minimal turnover or retrenchment
3. Selection of best talent for organization
4. Skill & talent evaluation of employee
5. For example, applicant skills can be evaluated through application forms, interviews, tests,
and reference check, letters of recommendation or reference, and physical examinations.
Clearly, some selection tools are more effective than others, but a combination of tools is
usually best.
In other words the basic objectives of selection process is:
To predict which applicant would be the most successful if selected for the job, and
To sell the organization and the job to the right candidate. The selection process is based
on the organizational objectives, the job specification and the recruitment policy of the
organization. The various selection processes are initial screening, application forms,
selection tests, group discussions, interviews and reference checks.
STEPS IN THE SELECTION PROCESS
Our examination of the selection process will entail eight steps. These steps are:
1. Initial Screening
2. Application Forms
3. Employment Tests
4. Selection Interviews
5. Verification of References
6. Medical Evaluation
7. Supervisory Interviews
8. Hiring Decision
PLACEMENT
Placement is the process of assigning a specific job to each one of the selected candidates.
It involves assigning a specific rank and responsibility to an individual.
It implies matching the requirements of a job with the qualifications of a candidate.
PROCESS OF EMPLOYEE PLACEMENT
1. Collect details about the employee
2. Construct the employee’s profile
3. Match between sub-group profile and individual’s profile
4. Compare sub-group profile to job family-profile
5. Match between job family profiles and sub-group profile
6. Assign the individuals to job family
7. Assign the individual to specific job after further counselling and assessment
PROPER PLACEMENT HELPS TO
1. Improve Morale
2. Reduce turnover
3. Reduce Absenteeism
4. Job Satisfaction
5. Psychological adjustment
INDUCTION/ORIENTATION
“Orientation or induction is the process of receiving and welcoming an employee when he

first joins a company and giving in the basic information he needs to settle down quickly and
happily and start work”.
OBJECTIVES
1. To help the new comer to overcome his shyness.
2. To build new employee’s confidence.
3. To develop the new entrants a sense of belonging and loyalty.
4. To foster a close and cordial relationship.
Asst. Prof. Swati Patil 32

5. To prevent false impression and negative attitude of the new employees.
6. To give the new comers necessary information like canteen, locker room. Rest periods and
leave rules etc.
ADVANTAGES
1. It helps to build two way communications
2. It facilitates informal relations and team work
3. Induction is helpful in supplying information about the organisation, job, and welfare of
employees.
4. Proper Induction will reduce employees grievances, absenteeism and labour turnover
5. Induction helps to develop good public relations and improve the overall morale of
employees.
6. An Induction programme proves that the company is taking a sincere interest in getting
him off to a good start.
CONTENTS OF AN INDUCTION PROGRAMME
1. Brief history and operations of the company.
2. Products and services of the company.
3. The company’s organization structure.
4. Location of departments and employee facilities.
5. Policies and procedures of the company.
6. Rules, regulations and daily work routines.
7. Grievance procedures. 8. Safety measures
9. Standing orders and disciplinary procedures
10. Terms and conditions of service including wages, working hours, over time, holidays etc.
11. Suggestion schemes
12. Benefits and services for employees.
13. Opportunities for training and promotions transfers etc.
SOCIALIZATION
Socialization is the process of adaptation. It is the process by which new employees attempt
to learn and inculcate the norms and values of work roles in an organization. Induction is the

part of Socialization. Induction is confined to new recruits, whereas Socialization also covers
cases of Transfers and Promotion.
The orientation process is similar to socialization-
The established group communicates systematic sets of expectations for how newcomers
should behave People undergoing socialization respond both cognitively and emotionally
They receive and try to understand the cultural messages being sent. If the message are not
understood or accepted, they must invent their own behaviors.
BASED ON SEVERAL ASSUMPTIONS
1. New employees suffer from anxiety and require adjustment. 2. It strongly affects
employee performance and stability of the organization.
PROCESS OF SOCIALIZATION
1. Pre-arrival
2. Encounter
3. Metamorphosis
4. Outcomes (commitment and productivity)

TRAINING AND DEVELOPMENT

Unit: 3
Training is the process of increasing the knowledge and skills for doing a particular job.
INTRODUCTION
“Training and development” is a subsystem of an organization and core function of human
resource management. It ensures continuous skill development of employees working in
organisation and habituates process of learning for developing knowledge to work. Training
and Development is the foundation for obtaining quality output from employees.
Training and Development is a structured program with different methods designed by

professionals in particular job. It has become most common and continuous task in any
organisation for updating skills and knowledge of employees in accordance with changing
environment. Optimisation of cost with available resources has become pressing need for
every organisation which will be possible only by way of improving efficiency and
productivity of employees, possible only by way of providing proper employee training and
development conditioned to that it should be provided by professionals.
OBJECTIVES
The principal objective of training and development division is to make sure the availability
of a skilled and willing workforce to an organization. In addition to that, there are four other
objectives: Individual, Organizational, Functional, and Societal.
Individual Objectives – help employees in achieving their personal goals, which in turn,
enhances the individual contribution to an organization.
Organizational Objectives – assist the organization with its primary objective by bringing
individual effectiveness.
Functional Objectives – maintain the department’s contribution at a level suitable to the
organization’s needs.
Societal Objectives – ensure that an organization is ethically and socially responsible to the
needs and challenges of the society.

In the field of human resource management, training and development is the field concerned
with organizational activity aimed at bettering the performance of individuals and groups in
organizational settings. It has been known by several names, including employee
development, human resource development, and learning and development.
WHY TRAINING IS NEEDED?

1. To familiarize the employee with the company’s culture.
2. To increase the employee’s quantity and quality of output.
3. To enable the employee to do new jobs and prevent his old skills become obsolete.
4. To prepare the employee for promotion to higher jobs.
5. To reduce supervision, wastage and accidents.
6. To build second line workers.
IMPORTANCE OF TRAINING
1. Higher productivity
2. Better quality of work
3. Less learning period
4. Cost Reduction
5. Reduced supervision
6. Low accident rate
7. High morale
8. Personal Growth
An example of importance of training employees On a recent flight, the managing director of

an international broking firm was sitting next to Journalist. With two hours of uninterrupted
time at our hands, I asked him how he handled losses in his business. "Recently, one of my
employees made a calculation mistake and we lost Rs.2,50,000 at the click of a button," he
said. "So, did you fire the guy?" I asked him. "Of course not!" he said, "I paid Rs. 250,000 for
his training. Why would I fire him?"
His answer left me dumfounded and taught me a great lesson in handling people who goof
up. Firing the man is not the optimum solution, fixing the loophole of error is.
To expect flawless execution from team members and colleagues would be quite unreal.
People do make errors based on incorrect or incomplete data, altered information or simply,

wrong judgment. But to terminate someone's services or take severe irrevocable action
against them, would be an even bigger blunder. Here is what you can do, when you are faced
with a loss, on someone else's erroneous execution.
BENEFITS OF TRAINING
1. Self Confidence
2. Higher Earnings
3. Safety
4. Adaptability
5. Promotion
6. New Skills
TYPES OF TRAINING
1. Orientation Training
2. Job Training
3. Safety Training
4. Promotional Training
5. Refresher Training
6. Remedial Training
METHODS OF TRAINING ON-THE-JOB

1. OJT
2. Demonstration & Examples
3. Apprenticeship
OFF-THE-JOB
1. Lectures
2. Conference
3. Seminar or Team Discussion
4. Case Discussion
5. Role Playing
6. Vestibule Training

ON-THE-JOB
1. Coaching
2. Project Assignment
3. Junior Board of Management
OFF-THE-JOB
1. Case Method
2. Group discussion
3. Management Games
4. Sensitivity Training
5.Transaction Analysis
6. Lectures
7. Simulation
8. Conference
9. Seminar or Team Discussion
A SOUND TRAINING POLICY NEEDS TO ADDRESS

1. The results expected to be achieved
2. The responsibility for training function
3. The priorities for training
4. The type of training required
5. The time and place of training
6. The payment to trainees
7. The outside agencies to be associated
DESIGNING A TRAINING PROGRAMME

1. Responsibility for Training
2. Selecting & Motivating the Target Group
3. Preparing the Trainers
4. Developing Training Package
5. Presentation
6. Performance Try-out
7. Follow up

STEPS IN TRAINING PROGRAMME
1. Identifying Training Needs - Present Performance – Desired Performance (Accepted Level

of Performance)
2. Setting Training Objectives and Policy
3. Designing Training Programme
4. Conducting the Training
5. Follow up and Evaluation
EVALUATION OF TRAINING
Methods of Evaluation
1. Opinion & Judgments of trainers, superiors & peers
2. Evaluation Form by Trainees
3. Questionnaire
4. Oral & Written Tests
5. Structured Interviews with trainees
6. Comparing Trainees Performance – Before & After Training
7. Studying profiles and career development charts of trainees
8. Measuring levels of productivity, wastage, costs, absenteeism and employee turnover
9. after training
10. Trainees comments and reactions during the training period
11. Cost benefit analysis of the training programme.
Evaluation of Training
1. Pre-Training/Post-Training Questionnaire
2. Feedback from participants and their suggestions
3. Feedback from Supervisors after 6 months
4. Feedback from Participants after 6 months
5. Third Party Evaluation
6. Corporate Overall productivity/Organizational Effectiveness

PRINCIPLES OF TRAINING
1. Clear Objectives
2. Training Policy
3. Motivation
4. Reinforcement
5. Organized Material
6. Learning Periods
7. Preparing the Instructors
8. Feedback
9. Practice
10. Appropriate Techniques
CAREER PLANNING (CP)
“In each of us rests the power to shape our future and it will be shaped by our action or
inaction.” - Kate weldelton
You should control your career for your own advantages - for controlling your career, you
make effective planning for your future and implementation it practically, because you are
the only one who has the right about your decision of future planning, before you start your
career planning, first ask yourself:
Who are you?
Where are you now?
What do you want? (Develop your 1-2-3-5-10....year vision)
How can you get there?
"Effective career planning is about finding a job that works for you, matching who are to the
life you are going to lead" - John Lees
DEFINITIONS
1. A career may be defined as ‘a sequence of jobs that constitute what a person does for a
living’.
2. According to Schermerborn, Hunt, and Osborn, ‘Career planning is a process of
systematically matching career goals and individual capabilities with opportunities for their
fulfillment’.

3. Career planning is the process of enhancing an employee’s future value.

4. A career plan is an individual’s choice of occupation, organization and career path.
Career planning encourages individuals to explore and gather information, which enables
them to synthesize, gain competencies, make decisions, set goals and take action. It is a
crucial phase of human resource development that helps the employees in making strategy for
work-life balance.
Nature The following are the salient features of career planning:

A Process: Career planning is a process of developing human resources rather than an
event.
Upward movement: It involve upward movement in the organisational hierarchy, or
special assignments, project work which require abilities to handle recurring problems,
human relations issued and so on.
Mutuality of Interest: The individual's interest is served as his needs and aspirations are
met to a great extent and the organisation's interest is served as each of its human resources is
provided an opportunity to develop and contribute to the organisational goals and objectives
to the optimum of its ability and confidence.
Dynamic: Career planning is dynamic in nature due to an ever changing environment.
FEATURES/ CHARACTERISTICS OF CAREER PLANNING AND CAREER

DEVELOPMENT
1. It is an ongoing process.
2. It helps individuals develop skills required to fulfill different career roles.
3. It strengthens work-related activities in the organization.
4. It defines life, career, abilities, and interests of the employees.
5. It can also give professional directions, as they relate to career goals.
OBJECTIVES The major objectives of career planning are as follows-

1. To identify positive characteristics of the employees.
2. To develop awareness about each employee’s uniqueness.
3. To respect feelings of other employees.
4. To attract talented employees to the organization.
5. To train employees towards team-building skills.
6. To create healthy ways of dealing with conflicts, emotions, and stress.

BENEFITS
1. Career planning ensures a constant supply of promotable employees.
2. It helps in improving the loyalty of employees.
3. Career planning encourages an employee’s growth and development.
4. It discourages the negative attitude of superiors who are interested in suppressing the
growth of the subordinates.
5. It ensures that senior management knows about the calibre and capacity of the employees
who can move upwards.
6. It can always create a team of employees prepared enough to meet any contingency.
7. Career planning reduces labour turnover.
8. Every organization prepares succession planning towards which career planning is the first
step.
PROCESS OF CAREER PLANNING STEPS:

Step 1: Self-Assessment – The first and foremost step in career planning is to know and
assess yourself. You need to collect information about yourself while deciding about a
particular career option. You must analyse your interests, abilities, aptitudes, desired lifestyle,
and personal traits and then study the relationship between the career opted for and self.
Step 2: Goal Setting – Set your goals according to your academic qualification, work
experience, priorities and expectations in life. Once your goal is identified, then you
determine the feasible ways and objectives how to realize it.
Step 3: Academic/Career Options – Narrow your general occupational direction to a

particular one by an informatory decision making process. Analyse the career option by
keeping in mind your present educational qualification and what more academic degrees you
need to acquire for it.
Step 4: Plan of Action - Recognize those industries and particular companies where you
want to get into. Make the plan a detailed one so that you can determine for how many years
you are going to work in a company in order to achieve maximum success, and then switch to
another. Decide where you would like to see yourself after five years and in which position.

Step 5: Catch Hold of Opportunities – Opportunity comes but once. So, whenever you get
any opportunity to prove yourself and get into your desired career, try to convert it in every
way for suiting your purpose. Remember, a successful professional is also quite opportunistic
in his moves, examining every opening to turn to his favour.
Advice on Career Planning

1. Try not to waste much time and wait too long between career planning sessions.
2. Don't ever judge and analyse yourself, like your likes and dislikes, abilities, etc. by
listening to what people around you say. Be your best judge.
3. Be open to constructive criticisms. Career planning is a very important step that needs to
be considered in totality. If need be, you should not be hesitant to take the help of
professional guidance and find out the best career planning for yourself.
Different phases in the career of an employee: Most working people go through career
stages and it has been found that individual’s needs and expectations change as the individual
moves through these stages.
1. Exploration Stage: This is the stage where an individual builds expectations about his
career. Some of them are realistic and some are not. But the fact is that these could be a result
of the individual's ambitions.
2. Establishment Stage: This could be at the stage where the individual gets his first job, gets
accepted by his peers, learns in this job, and also gains the first tangible evidence of success
or failure. The establishment/advancement stage tends to occur between ages 25 and 44. In
this stage, the individual has made his or her career choice and is concerned with
achievement, performance, and advancement. This stage is marked by high employee
productivity and career growth, as the individual is motivated to succeed in the organization
and in his or her chosen occupation. Opportunities for job challenge and use of special
competencies are desired in this stage. The employee strives for creativity and innovation
through new job assignments. Employees also need a certain degree of autonomy in this stage
so that they can experience feelings of individual achievement and personal success.

3. Mid-Career Stage: The individual's performance levels either continue to improve, or

levels, or even deteriorates.
4. Late Career: This is regarded as a pleasant phase, where one is allowed to relax and play
the role of an elderly statesman in the organization.
5. Decline: The stage, where the individual is heading towards retirement.
JOB CHANGES
Mobility and flexibility in the workplace are necessary to cope with the changing
requirements of an organization. Job changes provide necessary flexibility. Employees move
from one job to another within an organization through transfers, promotions and demotions.
Such movement is called internal mobility. Some employees leave the organization due to
resignation, retirement and termination. These movements are known as external mobility.
PURPOSES OF JOB CHANGES FORMS OF JOB CHANGES

1. To improve organizational effectiveness 1. Promotion
2. To maximize employee efficiency 2. Transfers
3. To cope with changes in operations 3. Separation
4. To ensure discipline.
PROMOTION
Promotion refers to advancement of an employee to a higher post carrying greater
responsibilities, higher status and better salary, to another job commanding greater authority,
higher status and better working standards. It refers to upward movement of an employee
from his current job position to another that is higher pay, responsibility & hierarchy within
an organization. Promotion has an in-built motivational value i.e. it elevates the status &
power of an employee within an organization.
1. Advancement to higher post

2. Upward Movement in hierarchy
3. More responsibilities
4. Higher Status
5. Better Salary

PURPOSE OF PROMOTION
To utilize the skills & knowledge of an employee at an appropriate level in the
organization’s hierarchy.
To develop a competitive spirit among employees to acquire skills & abilities required for
higher level jobs.
To develop competent workforce in order to create an effective organization.
To promote selfdevelopment of employees & reduce labour turnover.
To boost confidence, loyalty & morale of the employees.
To achieve employee satisfaction by rewarding committed & hardworking employees.
PROMOTION POLICY
1. Every Organization should have well established Promotion Policy.
2. In writing and communicated to all.
3. Uniform in all the Departments. Ratio of Internal promotion & external promotion should
be the same.
4. Due weightage to seniority, merit & future potential.
5. Fixation of Responsibility Centre to take decisions on promotions.
6. Provision for appeal and review.
7. Counselling to rejected candidates.
8. Fair; impartial
9. Consistent
TYPES OF PROMOTION HORIZONTAL:

It involves movement of employee form its current job position to another which is higher in
pay and responsibility and designation, however the job classification remains the same.
VERTICAL:
It involves movement of employees form its current job positon to another which is higher in
pay, status, responsibility, designation and job classification.
DRY PROMOTION:
It refers to an increase in responsibilities and status of the employee without any increase in
pay or other financial benefits.

OPEN/CLOSED:
When a company announces vacancies and open the job position to all employees in an
organization and all individuals within the organization have a chance of being selected for
that job, it is open promotion. A closed promotion is when the organization does not
announce any vacancies and the job position is not open to all employees of the organization.
BASIS OF PROMOTION
1. Seniority
2. Merit
3. Merit-cum-seniority i.e. superior performance & length of service or both.
DEMOTION
Demotion implies the assignment of an employee to a job of lower rank with lower pay. It
refers to downward movement of an employee in the organizational hierarchy with lower
status and lower salary.
It is downgrading process and a serious type of Punishment, hence it should be used tactfully
and only when it is absolutely necessary.
MEANING
Demotion is “reverse” of promotion. Demotion is the lowering of a rank, reduction in salary,
status and responsibilities. It may be defined as the assignment of an individual to a job of
lower rank and pay usually involving lower level of authority and responsibility.
Demotion is normally used as a punishment for breach of discipline. It brings bad name to the
employee. The juniors supersede a person which brings humiliation. Even the reduction of
pay will adversely affect the budget of an employee.
NEED FOR DEMOTION: WHY AND WHEN

1. Adverse Business Conditions
2. Incompetence
3. Technological Change
4. Disciplinary Measure.

CAUSES
Demotion may take place due to the following reasons:
1. Breach of Discipline: A breach of discipline may attract demotion as a punishment. An
organisation can work only if proper discipline is maintained. A punitive action for such
breach may be necessary so that people do not flout rules, regulation etc. of the company.
2. Inadequacy of Knowledge: A person may not be competent to perform his job properly. He
may not be able to meet job requirements. In such a situation demotion becomes necessary.
3. Unable To Cope With Change: Now-a-days, there is a rapid change in technology and
methods of work. The existing employees may not be able to adjust themselves as per the
new requirements. It may be due to lack of education, technical skill, ill health, old age or
other personal reasons. Under these circumstances new persons may be needed to take up
such jobs.
4. Organisational Re-Organisation: Sometimes there may be organisational changes. It may
be necessitated by either combining the departments or closing of some sections or
departments. In such situations the number of positions is reduced and some employees may
be posted at the lower positions until normality is restored. Such demotions are not due to any
fault of the employees.
TYPES OF DEMOTION
1. Compulsory Demotion: it involves lowing of job title, authority, status or salary of an
employee as a disciplinary tool or due to adverse business condition by the organization.
2. Voluntary Demotion: if an employee requests the organization to lower his work load so
that he can manage his personal life, it is the case of voluntary demotion.
TRANSFER
Definition: A transfer refers to lateral movement of employees within the same grade, from
one job to another. According to Flippo “a transfer is a change in the job (accompanied by a
change in the place of the job) of an employee without a change in responsibilities or
remuneration”.
Transfer differs from promotion in the sense that the latter involves a change of job involving
increase in salary, authority, status and responsibility, while all these remain unchanged
/stagnant in the case of former. Also, transfers are frequent and regular whereas promotions
are infrequent, if not irregular.

Transfer may be initiated either by the company or the employee. In practice, the company
may transfer the employee to the place where he/she can prove more useful and effective.
Similarly, employee may initiate transfer to a location where he/she is likely to enjoy greater
satisfaction.
It has been defined as “ lateral shift causing movement of individuals from one position to
another usually without involving any marked change in duties, responsibilities, skills needed
or compensation” Transfer could be permanent, temporary or ad hoc to meet emergencies.
Usually, permanent transfers are made due to changes in work load or death, retirement,
resignation, etc. of some employee. As regards temporary transfer, it arises mainly due to ill
health, absenteeism, etc. of some employee.
Transfer decisions may be perceived as negative or positive depending upon an individual’s

personal preferences, needs and aspirations. For example, an organisation may consider
transfer from Guwahati regional office to Delhi-head office as positive and reward because it
will enable the employee to broaden his/her knowledge and work experience. On the
contrary, the employee may look down upon it as it breaks ties with his people and
community in Guwahati.
Sometimes, transfers are used as an instrument for victimizing the employees by

management. Realizing it, provisions are made by constituting labour courts to set aside
transfer orders proved as management strategy to victimize employees. In order to make
transfers useful for employee and the company, some organisations have clear agreements
with trade unions for the transfer of unionized staff especially on promotions.
There are some public sector organisations like Minerals and Metals Trading Corporation
(MMTC) who have entered into agreements, with employees for creating two cadres of
officers, namely. Local Officers and All India Officers wherein promotions to and within the
former are less accelerated than in the latter, but do not entail transfer.
Need The need for making transfer is left for various reasons as listed below:
1. To Meet Organisational Needs: Changes in technology, volume of production, production
schedule, product line, quality of products, organisational structure, etc. necessitate an
organisation to reassign jobs among employees so that right employee is placed on the right
job.

2. To Satisfy Employee Needs: Employees may request for transfer in order to satisfy their
desire to work in a particular department, place and under some superior. Personal problems
of employee like health, family circumstances, and interpersonal conflicts may also
necessitate transfer.
3. To Better Utilize Employee: When an employee is not performing satisfactorily on one job
and management thinks that his/her capabilities would be utilized better elsewhere, he/she
may be transferred to other job.
4. To Make the Employee More Versatile: In some organisations like banks, employees after
working on a job for a specified period are transferred to other job with a view to widen their
knowledge and skill and also reduce monotony. This is also called ‘job rotation.
5. To Adjust the Workforce: Work force can be transferred from the departments / plants
where there is less work to the departments/plants where more work is.
6. To Provide Relief: Transfers may be made to give relief to the employees who are
overburdened or doing hazardous work for long period.
7. To Punish Employee: Management may use transfer as an instrument to penalize
employees who are indulged in undesirable activities. As a disciplinary action, employees are
transferred to remote and farflung areas.
Policy: Transfer involves costs as well. Therefore, every organisation should have a just and
impartial transfer policy for its employees. Transfers should then be affected according to
such policy only. In fact, a good and fair transfer policy serves as a guide-post to the manager
in affecting transfers as and when required in the overall interest of the organisation.
NEED AND PURPOSE OF TRANSFERS

1. To meet organizational needs
2. To satisfy employee needs
3. To better utilize employees
4. To make the employee more versatile
5. To adjust the work force
6. To punish employees

TYPES OF TRANSFERS
1. Production Transfer
2. Replacement transfer
3. Versatility Transfer
4. Remedial Transfer
5. Shift Transfer
SEPARATIONS
Separation of an employee takes place when his service agreement with the organization
come to an end and the employee the organization. It may occur due to resignation, death,
dismissal and layoff. Following are various forms of separations.
1. Resignation
2. Retirement
3. Layoff
4. Retrenchment
5. Dismissal

COMPENSATION FUNCTION
UNIT - 4
OUTLINE:
Job evaluation; merit rating;
methods of wage; payment, incentive;
compensation- types, advantages, perquisites;
wage system in india- minimum wage, fair wage, living wage;
JOB EVALUATION
Job Evaluation is a system wherein a particular job of an enterprise is compared with its other
jobs. In the present industrial era, there are different types of jobs which are performed in
every business and industrial enterprise. Comparative study of these jobs is very essential
because on the basis of such study the structure of wages for different types of jobs is
prepared. The comparison of 70 jobs may be made on the basis of different factors such as
duties, responsibilities, working conditions, efforts, etc. In nut shell, it may be said that job
evaluation is a process in which a particular job of a business and industrial enterprise is
compared with other jobs of the enterprise. Some scholars name it the determination of job
rate. Kimball and Kimball define job evaluation as ― “an effort to determine the relative
value of every job in a plant to determine what the fair basic wage for such a job should be.”
OBJECTIVES OF JOB EVALUATION
The following are the objectives of job evaluation:
(i) To secure and maintain complete, accurate and impersonal descriptions of each
distinct job or occupation in the entire plant;
(ii) To provide a standard procedure for determining the relative worth of each job in
a plant;
(iii) To determine the rate of pay for each job which is fair and equitable with relation
to other jobs in the plant, community or industry;
(iv) To ensure that like wages are paid to all qualified employees for like work;

(v) To promote a fair and accurate consideration of all employees for advancement
and transfer;
(vi) To provide a factual basis for the consideration of wage rates for similar jobs in a
community and industry; and
(vii) To provide information for work organisation, employees ‗selection, placement,
training and numerous other similar problems.
ADVANTAGES OF JOB EVALUATION
Job evaluation enjoys the following advantages -
(i) Job evaluation is a logical and to some. Extent an objective method of ranking
jobs relative to one another. It may help in removing inequalities in existing wage
structures and in maintaining sound and consistent wag differentials a plant or
industry.
(ii) In the case of new jobs, the method often facilitates fitting them into the existing
wage structure.
(iii) The method helps in removing grievances arising out of relative wages; and it
improves labourmanagement relations.
(iv) The method replaces the many accidental factors, occurring in less systematic
procedures, of wage bargaining by more impersonal and objective standards, thus
establishing a clear basis for negotiations.
(v) The method may lead to greater uniformity in wage rates, thus simplifying wage
administration.
(vi) The information collected in the process of job description and analysis may a1so
be used for the improvement of selection, transfer and promotion procedures on
the basis of comparative job requirements.
(vii) Such information also reveals that workers are engaged on jobs requiring less skill
and other qualities than they possess, thereby pointing to the possibility of making
more efficient me of the plants‘ labour force;
METHODS OF JOB EVALUATION
The following are the methods of Job Evaluations-
1. Ranking Method: The ranking method requires a committee typically composed of

both management and employee representatives of job in a simple rank order, from

highest to lowest. Rating specialists review the job analysis information and thereafter
appraise each job subjectively according to its general importance in comparison with
other jobs. In other words, an overall judgment is made of the relative worth of each job,
and the job is ranked accordingly. These are overall rankings, although raters may
consider individually the responsibility, skill, effort, and working conditions and each
job.
No attempt is made to determine the critical factors in each job. Therefore, it is quite
possible that important elements of some jobs may be overlooked while unimportant
items are weighed too heavily. It may be noted that because of the difficulties in ranking
a large number of jobs at the time, the paired comparison technique of ranking is
sometimes used. With this technique, decisions are made about the relative worth of only
two jobs at a time. However, since each job is compared with every other jobs, the
number of comparisons to be made increases rapidly with the addition of each job to the
list.
2. Job Grading or Job Classification Method:
This method works by assigning each job a grade, level or class that corresponds to a
pay grade for instance Grade I, Grade II, Grade III and so forth. These grades or
classifications are created by identifying gradations of some common denominations,
such as job responsibility, skill, knowledge, education required, and so on. Then, for
each job grade so created standard job descriptions are determined. Thereafter, such
standard description is matched with job descriptions in the organisation. The standard
description that most nearly matches the job description determines the job‘s grading.
This method requires a decision at the initial stage on the number of pay grades to be
included in the wage and salary plan. Of course, the actual amount to be assigned to pay
grades made after the job evaluation is completed.
3. Factor-comparison Method: This method is a combination of ranking and point systems.
All jobs are compared to each other for the purpose of determining their relative
importance by selecting four or five major job elements or factors which are more or less
common to all jobs. These elements are not predetermined. These are chosen on the
basis of job analysis. The few factors which are customarily used are: a) Mental
requirements b) Skill c) Physical requirements d) Responsibilities e) Working
conditions, etc. A few jobs are selected as key jobs which serve as standard against
which all other jobs are compared. Key job is one whose contents have been stabilised

over a period of time and whose wage rate is considered to be presently correct by the
management and the union.
MERIT RATING
Merit rating in a technique to evaluate the merits of duals according to job request merit. The
personal abilities that an individual brings to his job, measured by the extent to which his
output or quality of his work exceeds the minimum that can reasonably to expect for his basic
rate of pay.
Methods of Merit Rating Following are the various methods of Merit Rating:
1. Rating Procedure: In this method, the abilities of an employee are compared with that of
other employees. Under this method, the employees are divided into efficient and inefficient
employee. This method adopts the technique of paired comparison. Therefore, the pairs of
two employees each are made according to the formula of N (N-1) Z and the more efficient
employee in every pair is underlined. The employee having maximum underline is treated as
the most efficient employee having maximum underline is treated as the most efficient
employee whereas the employee having no underline to his credit is treated least efficient
employee.
2. Grading Method: Here different grades are divided for evaluating the ability of different
employees and then the employees are placed in these grades. The grades are—Excellent,
Very Good, Good, Average, Bad, and Worst. Every grade may again be sub-divided into
three grades:
(i) Highly Satisfactory
(ii) Satisfactory
(iii) Non-satisfactory. Employees can be placed in any of these groups according to their
abilities.
3. Man to Man Comparison Method: This is the method where, a master scale is used to
evaluate the qualities of different employees. The five scales of performance are determined
for every job in the master scale. For example, to measure the efficiency of employees, first
of all the most efficient employee is selected and after that the most inefficient employees are
selected who are respectively more efficient than average efficiency and less efficient than

average efficiency. These five employees become the base for measuring the efficiency of the
total employees. Every employee of the enterprise is compared with these five employees to
evaluate their ability and efficiency.
4. Graphic Rating Method: In this method, the abilities of employees are evaluated through
graph. The abilities of all the employees are represented on a graph paper with the help of
scale. Following qualities are included to evaluate the ability of employees such as Quantity
of Job, Quality of job, Regularity, ability to learn, ability to initiate, dependence upon other
employees and officers, safety aspects, ability to direct, ability to supervise, behaviour with
other employees and officers. Under this method of Merit Rating, a report is prepared
regarding Merit Rating of every employees and it is represented on a graph paper. It makes
evaluation of employees very easy and simple.
5. Checking List Method: A list of necessary qualities for the performance of a job is
prepared under this method. The qualities of the employees are measured on the basis of the
abilities of such lists. If an employee possesses that quality, the sign ‗+ ‘is marked in the list.
If that quality is not possessed by an employee the sign ‗- ‘is marked in the list. If there is a
doubt regarding it, the sign of (?) is marked in the list. On the basis these sign, the abilities of
an employee are evaluated.
The specimen of checking list of Merit Rating is as follows - Checking List of Merit Rating
Question Yes (+) No (-)
1. Does the employee possess technical knowledge of his job?
2. Does the employee possess interest in his job?
3. Is the attendance of employee satisfactory?
4. Is the health of employee satisfactory?
6. Descript Evaluation Method: In this method supervisor prepares a detailed report of the
abilities, efficiency and potentialities of the employees under his supervision. All the
employees are evaluated on the basis of these reports.
7. Forced Choice Descriptive Method: In this method some details are collected regarding the
performance of an employee on the given job. The performance of an employee is evaluated

on the basis of these standards and the ability and efficiency of all the employees are
evaluated on this basis.
LIMITATION OF JOB EVALUATIONS
(i) Though many ways of applying the job evaluation technique are available, rapid
changes in technology and in the supply and demand of particular skills have
given rise to problems of adjustment.
(ii) Substantial differences exist between job factors and the factors emphasised in the
market. These differences are wider in cases in which the average pay offered by a
company is lower than that prevalent in other companies in the same industry or in
the same geographical area.
(iii) A job evaluation frequently favours groups different from those which are
favoured by the market. This is evident from the observations whole of Kerr and
Fisher. According to them, ―the jobs which tend to rate high as compared with
the market are those of janitor, nurse and typist, while craft rates are relatively
low. Weaker groups are better served by an evaluation plan than by the market;
the former places the emphasis not on force but on enquiry.
(iv) Job factors fluctuate ‘because of changes in production technology, information
system, and division of labour and such other factors. Therefore, the evaluation of
a job today is made on the basis of job factors, and does not reflect the time job
value in future. In other words, continuing attention and frequent evaluation of a
job are essential.
(v) Higher rates of pay for some jobs at the earlier stages than other jobs or the
evaluation of a job higher in the organisational hierarchy at a lower rate than
another job relatively lower in the organisational hierarchy often give rise to
human relations problems and lead to grievances among those holding these jobs.

MAINTENANCE AND INTEGRATION FUNCTIONS
UNIT – 5
OUTLINE:
• Introduction; administration of welfare;
• Amenities & fringe benefits;
• Safety & accident prevention work;
• Environment fatigue safety; accident prevention;
• Employee grievances and their redressal;
• Suggestion schemes;
• Administration of discipline;
INTRODUCTION
The maintenance function aims at retaining efficient and experienced employees in the
organization. This calls for creative HR practices. In this regard, HR managers are
responsible for offering a wide range of HR programmes covering occupational safety, health
promotion and physical fitness, canteen facilities, recreation activities, transportation
programmes, employee suggestion schemes, career counselling and growth for creating a
positive work environment. It consists mainly of industrial relations and aims at ensuring
good relations between the management and the employees. HR managers have to implement
industrial relations programmes that would ensure ethical and fair treatment in disciplinary
action, grievance redressal, and career management processes.
They should also counsel the employees and the management to prevent and, when
necessary, resolve disputes over labour agreements or other labour relation issues. It is to be
understood here that the functions of HRM can vary widely from one organization to another,
depending upon its nature, size, and objectives. For instance, a smaller organization may
follow a shorter HRM process with a greater emphasis on functions like procurement and
compensation and little or no priority for activities like training and development and
industrial relations maintenance. On the contrary, large organizations may pursue a longer
and more comprehensive HRM process to meet the requirements of both the management
and the workforce.
ADMINISTRATION OF WELFARE DEFINITION
Welfare means faring or doing well. It is a comprehensive term, and refers to the physical,
mental, moral and emotional well-being of an individual. The term welfare is a relative
concept, relative in time and space. It, therefore, varies from time to time, region to region
and from country to country. Labour welfare refers to taking care of the well-being of
workers by employers, trade unions and governmental and non - governmental agencies.

Recognizing the unique place of the worker in the society and doing good for him/her,
retaining and motivating employees, minimizing social evils, and building up the local
reputation of the company are the argument in favour of employee welfare.
Welfare facilities help in motivating and retaining employees .most welfare facilities are
hygiene factors which, according to Herzberg, create dissatisfaction if not provided. Welfare
facilities besides removing dissatisfaction help develop loyalty in workers towards the
organisation.
TYPES OF WELFARE ACTIVITIES
The social and economic aspects of the life of a worker have direct influence on the social
and economic development of the nation. There is every need to take care of the worker-to
provide both statutory and non - statutory facilities to him/her. A comprehensive list of
welfare activities is given by moorthy in his monumental work on labour welfare .he divides
welfare measures into two broad groups, namely:
1. Welfare measures inside the work place; and
2. Welfare measures outside the workplace.
WELFARE MEASURES INSIDE THE WORK PLACE
1) Conditions of the work environment
a) Neighbourhood safety and cleanliness
b) Housekeeping.
c) Workshop (room) sanitation and cleanliness
d) Control of effluents.
e) Distribution of work hours and provision for rest hours, meal time and breaks
f) Workmen’s safety measures-maintenance of machine and tools, fencing of machine,

goggles and First aid equipments etc.
g) Notice board; poster, pictures, slogans
2) Conveniences
a) Rest room, wash basins, bathroom, provision for spittoons
b) Provision of drinking water; water cooler
c) Canteen services
d) Management of workers cloak room, rest room, reading room library

3) Worker’s health services Factory health centre; dispensary, ambulance, emergency aid,
medical examination for Workers; health education, health research; family planning
services.
4) Women and child welfare Antenatal and postnatal care, maternity aid, crèche and child
care; women’s general education; separate services for women workers, that is, lunch rooms,
toilet, rest rooms, women’s recreation(indoor); family planning services.
5) Workers’ Recreation Indoor game games; strenuous games to be avoided during intervals
of work.
6) Labour-Management participation
a) Formation and working of various committees, that is works committee, safety committee,
canteen committee;
b) Consultation in welfare area, in production area, in the area of administration, in the area
of public relations.
c) Workmen’s arbitration council.
d) Research bureau.
7) Worker’s Education Reading room, library, circulating library; visual education; adult
education; factory news bulletin.
1). Define employee welfare?
Ans. Employee welfare means the efforts to make life worth living for workmen. According
to Todd employee welfare means anything done for the comfort and improvement,
intellectual or social, of the employees over and above the wages paid which is not a
necessity of the industry.
2). What are the features of employee welfare?
Ans. The features of employee welfare are: -
▪ Employee welfare is a comprehensive term including various services, facilities and

amenities provided to employees for their betterment. ▪ The basic purpose in to improve the
lot of the working class. ▪ Employee welfare is a dynamic concept. ▪ Employee welfare
measures are also known as fringe benefits and services. ▪ Welfare measures may be both
voluntary and statutory.
3) What are the objectives of employee welfare?
Ans. Employee welfare is in the interest of the employee, the employer and the society as a
whole. The objectives of employee welfare are: -
▪ It helps to improve.

▪ It improves the loyalty and morale of the employees.
▪ It reduces labor turnover and absenteeism.
▪ Welfare measures help to improve the goodwill and public image of the enterprise.
▪ It helps to improve industrial relations and industrial peace.
▪ It helps to improve employee productivity.
4) Name the agencies of employee welfare?
Ans. The agencies of employee welfare are: -
1. Central government: - The central government has made elaborate provisions for the
health, safety and welfare under Factories Act 1948, and Mines Act 1952. These acts provide
for canteens, rest rooms, shelters etc.
2. State government: - Government in different states and Union Territories provide welfare
facilities to workers. State government prescribes rules for the welfare of the workers and
ensures compliance with the provisions under various labor laws.
3. Employers: - Employers in India in general looked upon welfare work as fruitless and
barren though some of them indeed had done pioneering work.
4. Trade unions: - In India, trade unions have done little for the welfare of workers. But few
sound and strong unions have been the pioneering in this respect. E.g. the Ahmedabad
textiles labor association and the Mazdoor sabha, Kanpur.
5. Other agencies: - Some philanthropic, charitable d social service organizations like: - Seva
Sadan society, Y.M.C.A., etc.
5). What are the types of welfare services?
Ans. The types of welfare services are as follows: -
Intramural: - These are provided within the organization like:
1. Canteen,
2. Rest rooms,
3. Uniform etc.
Extramural: - These are provided outside the organization, like:
1. Housing,
2. Education,
3. Child welfare,

4. Leave travel facilities,
5. Interest free loans,
6. Workers cooperative stores,
7. Vocational guidance etc.
6) What provisions do Factories Act 1948 provides for welfare?
Ans. Provisions provided by Factories Act 1948 are:
▪ Adequate, suitable and clean washing facilities separately for men and women workers.
▪ Facilities for storing and drying clothes.
▪ Canteens, if more than 250 workers are employed.
▪ Welfare officer, wherever more than 500 workers are employed.
▪ First aid boxes are provided.
AMENITIES AND FRINGE BENEFITS
The term fringe benefits refers to the extra benefits provided to employees in addition to the
normal compensation paid in the form of wage or salary. Many years ago, benefits and
services were labelled “fringe” benefits because they were relatively insignificant or fringe
components of compensation. However, the situation now is different, as these have, more or
less, become important part of a comprehensive compensation package offered by employers
to employees.
The main features of fringe benefits, as they stand today, may be stated as under-
1. They are paid to all employees (unlike incentives which are paid to specific employees
whose work is above standard) based on their membership in the organization.
2. They are supplementary forms of compensation.
3. They help raise the living conditions of employees.
4. They are indirect compensation because they are usually extended as a condition of
employment and are not directly related to performance.
5. They may be statutory or voluntary. Provident fund is a statutory benefit whereas transport
is a voluntary benefit.
SAFETY & ACCIDENT PREVENTION WORK
Workplace injuries cause direct costs to a business, such as workers’ compensation insurance,
medical expenses, and possible legal services. They also cause indirect costs with training

replacement employees, accident investigation, lost productivity, and equipment repair. The
following tips help create a safe working environment and assists with injury prevention.
1. Incorporate a safety and wellness plan. The foundation for a safe work environment is an
effective accident prevention and wellness program. The program needs to cover all levels of
employee safety and health with the encouragement to report hazardous practices or
behavior.
2. Conduct pre-employment screenings. Some accidents are caused by inexperience and the
inability to physically perform the position. Screening applicants is a safeguard for placement
with the appropriate positions matching their physical capabilities.
3. Educate employees and management staff. Continually cultivate a safety standard among
employees and management staff. Train employees about the importance of following safety
measures as often as possible. Supplemental training in body mechanics can reduce strain
injuries, and keep employees safe during lifting and moving.
4. Research safety vulnerabilities. Every business is unique and doesn’t necessarily have the
same safety concerns. Pay extra attention to common accidents and develop strategies to keep
these setbacks from happening.
5. Provide protection equipment. Personal protection equipment is essential and should be

enforced at hiring, meetings, and with spontaneous monitoring. Take time to teach employees
how to properly use goggles, face protection, gloves, hard hats, safety shoes, and earplugs or
ear muffs.
6. Have adequate staffing levels. More often than not, overtime hours are implemented
because of low staffing levels. Overworked employees may suffer from exhaustion and cut
corners to meet or exceed output. Hiring part-time or seasonal staff could help prevent
accidents due to exhaustion.
7. Don’t take shortcuts. Accidents happen when employees skip steps to complete a job ahead
of schedule. Make sure all instructions are clear and organized to prevent undue mishaps in
the workplace.
8. Inspect and maintain all company vehicles. According to The Occupational Safety and
Health Act findings, workplace-driving accidents cost employers an average of $60 billion
dollars a year. Maintenance should include monthly inspections and repairing vehicles as
soon as possible.
9. Monitor safety measures. After initial training, reinforce safety measures at every
opportunity, i.e. staff meetings, supervision, and education. Reward employees who abide by
setting standards or staying injury free for a specified amount of time.
10. Keep an orderly workplace. Poor housekeeping can cause serious health and safety
hazards. The layout of the workplace should have adequate foot path markings, be free of
debris, and stations for cleaning up spills.

Some workers are injured severely enough that they cannot return to work and need ongoing
medical care, leading to lost revenue and a reduction in workforce. Providing protective gear
and minimal education isn’t enough. Follow these tips, along with an effective accident
prevention and wellness program to reduce the number of workplace injuries and the
resulting costs. Partnering with Concentra’s trained professionals to provide preventative
education, in addition to supportive injury care, can improve total worker wellness and
improved worker efficiency and increased productivity.
EMPLOYEE GRIEVANCES AND THEIR REDRESSAL
Employee grievance refers to the dissatisfaction of an employee with what he expects from
the company and its management. A company or employer is expected to provide an
employee with a safe working environment, realistic job preview, adequate compensation,
respect etc.
However, employee grievance is caused when there is a gap between what the employee
expects and what he receives from the employer. Employee grievances may or may not be
justified. However, they need to be tackled adequately because they not only lower the
motivation and performance of the employee but also affects the work environment.
Employee grievances if left unchecked can lead to large disputes within the company. Any
company must have a proper channel for employee grievance redressal. Employee Grievance
should be handled in a proper and well defined manner. If an employee reports a matter
related to a policy or something he or she is not happy with or wants to complaint against, a
framework defined in policy should be used.
Typical Steps in Employee Grievance Handling:
1. Employee grievance should be submitted in a proper channel
2. The supervisor of the employee should be informed and spoken to
3. A review committee should examine the grievance for its validity and against the
company's policy
4. Resolution should be provided if the grievance is valid
5. If the employee grievance is not resolved there should be a further body where it can be
appealed.
Steps Involved in Employee Grievance Procedure! Grievances are but natural in

organisations. However like disciplinary problems, grievances also benefit none. Hence, there
is a need for handling or redressing grievances. For this, most large organisations in India
have, therefore, evolved a formal grievance procedure which enables an organisation to
handle grievances satisfactorily. As a matter of fact, there are several substantive reasons for
having a formal grievance procedure in an organisation.

The important ones are listed as follows:
(i) It provides an established and known method of processing grievances and keeps this
open.
(ii) It brings grievance to the knowledge of management so that it can know and understand
them to take necessary action for their settlement.
(iii) It gives an assurance to the employee that there is a mechanism available to consider his
or her grievance in a dispassionate and detached manner.
(iv) Venting his grievance and being heard gives the employee a feeling of being cared for.
This not only gets it off his chest”, but also helps him improve his morale and productivity.
(v) Involving several levels of organisation in the grievance procedure provides help on two
dimensions. Firstly, the supervisor who is the first level in the grievance process cannot be
by-passed by the worker. Secondly, involvement of several hierarchical levels in the
grievance machinery releases exclusive reliance on the supervisor who can’t jeopardize the
interest of the employee. The supervisor knows his is a placatory role.
(vi) Involvement of various levels makes them know the kinds of issues that concern
workers and managers.
(vii) Lastly, it checks the managers from taking arbitrary and biased actions against the
workers as they know that their actions are subject to challenge.
According to Michael Armstrong’, a formal grievance procedure provides the following

benefits:
(i) A channel for an aggrieved employee to express and present his grievance.
(ii) An assurance for dispassionate handling of one’s grievance.
(iii) An assurance about the availability of some machinery for prompt handling of grievance.
(iv) A means by which an aggrieved employee can release his feelings of discontent or
dissatisfaction with his job.
Grievance which indicates discontent and dissatisfaction among employees adversely affects
their productivity. In other words, by not initiating timely action to deal with grievance, the
organisation tends to lose the productive efforts of the discontented employee. It is indeed
unrealistic to assume that an aggrieved or dissatisfied employee will put his or her best efforts
on the job. The redressal of the employees’ grievances, therefore, assumes importance.
The procedure the management applies to deal with the employees grievances can be stated
as follows:
1. Timely Action: The first and foremost requisite in grievance handling is to settle them
immediately as and when they arise. Or say, grievances need to be nipped in the bud. Sooner

the grievance is settled, lesser will be its effects on employees’ performance. This requires
the first line supervisors be trained in recognizing and handling a grievance properly and
promptly.
2. Accepting the Grievance: The supervisor should try to recognize and accept the employee
grievance as and when it is expressed. It must be noted that acceptance does not necessarily
mean agreeing with the grievance, it simply shows the willingness of the supervisor to look
into the complaint objectively and dispassionately to deal with the grievance. Evidences
suggest that more the supervisor shows his or her concern for the employees, lesser is the
number of grievances raised by the employees.
3. Identifying the Problem: The grievance expressed by the employee maybe at times
simply emotionally, over-toned, imaginary or vague. The supervisor, therefore, needs to
identify or diagnose the problem stated by the employee.
4. Collecting the Facts: Once the problem is identified as a real problem, the supervisor
should, then, collect all the relevant facts and proofs relating to the grievance. The facts so
collected need to be separated from the opinions and feelings to avoid distortions of the facts.
It is useful to maintain the facts for future uses as and when these are required.
5. Analysing the cause of the Grievance: Having collected all the facts and figures relating
to the grievance, the next step involved in the grievance procedure is to establish and analyse
the cause that led to grievance. The analysis of the cause will involve studying various
aspects of the grievance such as the employees past history, frequency of the occurrence,
management practices, union practices, etc. Identification of the cause of the grievance helps
the management take corrective measures to settle the grievance and also to prevent its
recurrence.
6. Taking Decision: In order to take the best decision to handle the grievance, alternative
courses of actions are worked out. These are, then, evaluated in view of their consequences
on the aggrieved employee, the union and the management. Finally, a decision is taken which
is best suited to the given situation in the organisation. Such decision should serve as a
precedent both within the department and the organisation.
7. Implementing the Decision: The decision, whatsoever taken, must be immediately

communicated to the employee and also implemented by the competent authority.
McGregor’s “Hot- stove Rule” should be strictly followed while implementing the decision.
The decision, thus, implemented should also be reviewed to know whether the grievance has
been satisfactorily resolved or not.
In case, it is not resolved, the supervisor once again needs to go back to the whole procedure
step by step to find out an appropriate decision or solution to resolve the grievance.
However, if the grievance is not resolved at the internal level, the grievance is, then, referred
to an arbitrator who is acceptable to the employee as well as the management. The arbitrator
follows a quasi-judicial process where both the parties present evidence.

Based on the evidences so produced, the matter is cross-examined in thread-bare. The

arbitrator then thinks, applies his mind and arrives at a decision. The decision taken by
arbitrator is final and binding on both the parties.
The Indian Institute of Personnel Management, Kolkata has listed the following five steps
contained in a grievance procedure:
1. The employee should raise his or her grievance with the immediate supervisor.
2. If the decision taken by the supervisor is not acceptable to the aggrieved employee, he or
she should be made known to whom next in the echelon of management, he or she should
refer the grievance.
3. The grievance should be handled promptly and dispassionately.
4. Only the grievance raised by the employee having understood the instructions issued to
him or her employer will register the protest and set the grievance handling procedure in
motion.
5. If the aggrieved employee still remains dissatisfied, there will be no direct action by the
either party which might prejudice the case or raise doubts while the grievance is being
investigated.
Let us consider a unit level works grievance procedure as followed in the Tata Iron and Steel
Company (TISCO).
The procedure consists of the following stages:
Stage 1: The worker fills in a grievance form and submits the same to the shift in charge for
information and consideration.
Stage 2: In case, he is not satisfied with the decision, he goes to the departmental head for the
settlement of his grievance.
Stage 3: If the aggrieved employee is still dissatisfied, he forwards it to the appropriate

chairman of the zonal works committee (ZWC). Each zonal works committee consists of five
management and five union representatives. Their decision is final and binding on both the
parties. The individual grievances considered by the zonal committee pertain to promotion,
suspension, discharge and dismissal.
Stage 4: If the zonal committee either does not reach to a unanimous decision or the decision
is not accepted by the employee, the grievance is, then, forwarded to the central works
committee. This committee consists of representatives of top management and union
officials. Here also, the unanimity of principle operators and the decision taken by the
committee is binding on both the parties.

Stage 5: If this committee also does not reach to a unanimous decision, the matter is referred
to the Chairman of the company. His or her decision is final and is binding on both the
parties.
The stage at which the grievance is settled indicates the climate or the spirit that prevails in
the organisation. Obviously, lower the level of settlement, the quicker the redressal of a
grievance. The concerned officer, be the supervisor or manager, remains in a position to
“give and take” at initial lower stages such as stage
1. Gradually, he or she comes under the glare of publicity; his or her position becomes harder
at the subsequent stages.
Viewed from an aggrieved employee’s point, the delay in the settlement of grievance would
intensify his or her anxiety and dissatisfaction. Which, in turn would affect his or her morale
and productivity. The colleagues would also get affected. For the organisation, the delay in
settlement is a loss of goodwill and camaraderie that might have been built up over the
period.
SUGGESTION SCHEMES
DEFINITION
“A system in which people who work for an organization suggest ways in which it could be
improved, and are given rewards for useful suggestions.” “A system whereby employees can
make suggestions on how the organisation should be run more efficiently or profitably.”
Example- The suggestions scheme takes the form of a monthly meeting where employees can
offer ideas for improvement of production techniques.
Suggestions are requested on the following topics -
Engineering / Technical Inspection Methods and Procedures Process changes / Drawings

Material / Procedure related Gauges and Tools Logistics
EXPLANATION
The employee suggestion scheme is next to the continuous improvement process (CIP) and
employee inventions a part of innovation or idea management. The continual corrective
procedure represents guided brainstorming with a moderator and a regularly recurrent
process, whereby the suggestions of improvement are distinguished by spontaneous
brainstorming. In order to be able apply the idea, the companies and institutions field a
defined processing procedure. In contrast to employee inventions, which are stipulated by the
Employee Invention Act, the suggestion scheme is regulated in the company agreement or
collective agreement.
Every stimulus and idea is regarded as a suggestion of improvement that
• is voluntarily rendered by an employee and exceeds his/her own field of duties

• is not a patentable invention
• improves a product or process or suggests a solution for a company problem
• simplifies, accelerates working methods and working processes or makes them safer
• helps to prevent mistakes, improves quality, reduces manufacturing costs and leads to
increases in efficiency
A part of the company agreement or the collective agreement is the payment of an

improvement suggestion. Usually the fee orientates towards the amount saved. For example;
10-20% of the savings during the first year or a fixed sum for small improvements that are
targeted towards saving money to a lesser extent, but concern safety at work. The
improvement suggestion can involve all areas: technical improvements as well as
organisational, commercial and social. They do not need to be new; they can be copied and
adapted from other departments, companies and institutions. Payment is effected in the form
or cash premiums or material premiums.
The companies can also carry out special actions or competitions, in order to increase the
number of improvement suggestions. In the meantime, it has been recognised that this
instrument
• realizes savings and improves quality
• contributes towards permanent product and process innovation
• promotes the motivation and identification with the company
• supports the development of the employees
• is a performance benchmark for the company culture and illustrates the company's
innovative ability.
OBJECTIVES
The Company believes that the employee on the job knows the best & can contribute
significantly towards its growth & prosperity by enthusiastically participating in management
of the affairs of the company.
The suggestion scheme is introduced:
to stimulate creativity
to encourage employee participation
to recognize constructive ideas by personal rewards
to recognize Supervisors/Managers who motivate employees and implement the

suggestions.

PLANNING THE SUGGESTION SCHEME
An analysis of suggestion schemes in world-wide shows that the formula or success in

implementing the schemes are as follows:
1. All details of the system must be well planned from the definition of a suggestion to
evaluation and award criteria.
2. Responsibility for programmed co-ordination must be assigned to a responsible

management member (someone who will "Champion" the cause).
3. Programme details and procedures must be clearly communicated to all employees.
4. Top management must visibly and enthusiastically support the programme and
communicate its continual commitment to it.
5. Acknowledgements must be prompt.
6. The program must receive ongoing publicity. Adequate financial incentives should be
provided but that is not enough. What people really want is public acknowledgement,
personal expression of appreciation coupled with financial incentives.
PUBLICIZING THE SCHEME
You will have to actively drive and sell the programme. This could be effected by:
• The running of promotional campaigns, i.e. using well designed posters, circulars in pay
packets etc.
• Placing photos of staff awarded and an article should be published in the in- house
magazine and corporate newsletter.
• Another alternative can be involvement by the HR Division. The design and running of a
"Creativity and Innovation" training workshops can assist in the process. The benefit of this
course will be that Managers, including staff, will know how to evaluate ideas, generate
ideas and how to share ideas.
• A climate for suggestions can be created.
What are you doing to capture the thoughts and ideas (the intellectual capital) of your
employees? Time and time again research has shown that employees have ideas that can
benefit the organization.
Unfortunately ideas and thoughts are like light bulbs. If not captured, they disappear at the
flick of a switch. Eligible employee
All employees including trainees. Apprentices are eligible for awards provided the suggestion
is not part of one’s normal duty or solution to an assigned task. Eligible suggestion

It should be an original idea which will lead to:
Increased production & productivity
Energy conservation
Reduced costs by better methods elimination of waste, cost control, etc.
Removing bottle-necks
Improved quality
Increased safety & prevention of accidents, better housekeeping, improved environment,

etc.
NON-ELIGIBLE SUGGESTION
Suggestions on government policies
Suggestions which are already under consideration of management/already implemented
Suggestions on matters which are of the primary responsibility of the suggested
Matters of collective bargaining/Industrial Relations
Repeated suggestions
Suggestions without feasible solutions
TIPS, CHECKLIST
1. Clarify how the employee suggestion scheme is institutionalised in your company:

software, central department, through superiors.
2. Submit your idea in writing or in the available software process, even if you are not sure
whether the idea is part of your field of duties.
3. Map the benefit. What will be improved by your idea and what does it bring? If possible,
illustrate the monetary profit in an exemplary calculation.
4. If you do not get any feedback on your suggestion, enquire. Try to find out which
department is processing it and whether there are any questions. Ensure it is assessed
neutrally
5. Do not only illustrate the problem but also the solution
6. The employee suggestion scheme is not an instrument for giving feedback or to express
employee satisfaction
7. Make use of the idea database within your company to generate further ideas, improve
existing ones or adapt them to one's own conditions

8. Describe your idea as precisely as possible. In the case of larger ones, you can orientate
towards drawing up a business plan
9. Inform your superior and involve him/her in your thoughts. That usually pays off in
assessing your suggestion and gives you an advantage in the case of an employee assessment
As a manager, take on an adoptive function for employee ideas. Promote and support your
employees in making improvement suggestions and ideas. In this way, you create an
innovative and creative environment.
PROCEDURE FOR SUBMITTING SUGGESTION
Suggestion should be in writing (Hindi, Marathi, English) on the prescribed form
Suggestion can be submitted by individual or jointly by eligible employees
Suggestion forms duly filled in shall be put in suggestion boxes kept at the time office/R &
D Centre & other convenient locations
Suggestion box will be opened periodically
Receipt of the suggestions will be acknowledged and the suggestor will be informed of the
action taken
Suggestion received will be discussed in the suggestion scheme committee meeting and
award will be decided.
SELLING THE BENEFITS OF A SCHEME
To ensure that a suggestions scheme will succeed, you will have to "sell it" to management
and staff, preferably from the top down.
The following steps could prove advantageous in doing so -
1. At the launch of the scheme – the purpose, details and advantages should be spelled out to
them orally and then followed up with a written document.
2. An attractive notice or poster, briefly summarising the essential features of the scheme and
designed to draw attention to it, should be placed on notice boards in the branches.
3. A suggestion Committee should be selected on the basis of their technical and managerial
knowledge to appraise and rate the suggestions fairly and accurately. (Some members noted
for their creativity should be included).
4. The suggestions should be evaluated on a regular basis, i.e. bi-monthly. It is essential that
suggestions should be dealt with promptly, so that staff may be assured of the sincere desire
of management to receive and evaluate suggestions.

5. Regardless of its value, every suggestion should be acknowledged promptly and as soon as
possible the employee who made the suggestion should be advised of the outcome thereof, by
personal interview or letter.
This will prevent staff from losing interest in the scheme.
6. Any usable suggestion should result in some definite recognition to the employee
concerned, ranging from: Honourable mention, or letter of appreciation to a maximum cash
award.
7. In order to ensure impartiality on the part of the members of the committee it is desirable
that the person who comes with the idea’s identity be unknown to them to prevent bias.
8. Every suggestion that is adopted should be noted on the staff member’s service record for
consideration when the question of promotion arises.
9. The Suggestion Scheme could also be viewed as a complaints channel provided the
Department head’s authority is not undermined.
ESTIMATED BUDGET FOR PROPOSED SUGGESTION SCHEME
All costs will be incurred by the President’s Office and using the current staffing provision
within the President’s Office. No additional resources are required Suggestion Scheme
Committee
The committee will comprise of Chairman, Secretary and representatives from each
department, plus 2 or 3 employee representatives. Role of Suggestion Scheme Committee
To make rules and procedures for scrutinizing the suggestions
To decide on the feasibility of suggestions and its acceptance
To decide on any problem related to the operation of the scheme
To decide on the rewards.
Awards Due thought needs to be given to the award criteria. These can range from tangible
to intangible awards. It will be the policy of the company to reward the accepted suggestion
liberally. The quantum will be decided by the suggestion Committee.
Financial awards could consist of various grades of suggestions per company ranging from
Overall award for the year to Quarterly awards. It can, however, be assisted by other
methods: A large floating trophy should be purchased and be given annually to the company
or branch which came up with the best reward, at either the Annual Conference or the AGM.
The individual and regions name should be engraved on nameplates and mounted on the
trophy. Another factor is that this trophy can be held and displayed at the winning office for
the period between judging, thus generating regional pride. Suggestion of the year award

The employee who gives maximum number of winning suggestions or whose suggestion is
adjudged as the best suggestion will receive a Special Award. Departmental award
For the department, from where maximum number of Award Winning suggestions are
received.
ADMINISTRATION OF DISCIPLINE
The human resource manager should follow some guidelines in the administration of
disciplinary action. They are:
1. Disciplinary action is to be corrective rather than punitive: The objective of disciplinary

action is to correct an employee’s undesirable behavior, not to deal out punishment. While
punishment may be a necessary means to that end, one should never lose sight of the eventual
objective.
2. Disciplinary action should be progressive: Typically, progressive disciplinary action begins

with an oral warning and proceeds through a written warning, suspension, and, only in the
most serious cases, dismissal. This will provide the incumbent with a chance of correction
and also a scope of improvement in motivation.
3. “Hot Stove Rule” is to be followed: Administering discipline can be viewed as analogous

to touching a hot stove. This principle, if followed properly, will ensure the reaping of a few
advantages which are as under:
a. Provides warning: It is very important to provide advance warning that punishment will
follow unacceptable behavior. As you move closer to a hot stove you are warned by its heat
that you will be burned if you touch it.
b. Burns immediately: If disciplinary action is to be taken, it must occur immediately so that

the individual will understand the reason for it. With the passage of time people have the
tendency to convince themselves that they are not at fault.
c. Burns impersonally: Disciplinary action should be impersonal. There are no favourites

when this approach is followed.
d. Gives consistent punishment: Disciplinary action should also be consistent in that everyone
who performs the same act will be punished uniformly. As with a hot stove, each person who
touches it is burned consistently.

AUDIT & CONTROL FUNCTION
UNIT - 6
OUTLINE:
Performance appraisal- purpose, factors, methods
360 degree feedback uses and application, human resource accounting.
PERFORMANCE APPRAISAL
Performance appraisal or Performance evaluation is a method of evaluating the behaviour of

employees in a work place, normally including both the quantitative and qualitative aspect of
job performance. Performance here refers to the degree of accomplishment of the tasks that
makeup an individual’s job. It indicates how well an individual fulfilling the job demands.
Performance is measured in terms of results. Thus, Performance appraisal is the process of
assessing the performance or progress of an employee, or a group of employees on the given
job, as well as his potential for future development.
Thus, performance appraisal comprises all formal procedures used in organizations to

evaluate contributions, personality, and potential of individual employees. In other words,
performance appraisal includes the comparison of performance scales of different individuals
holding similar areas of work responsibilities and relate to determination of worth of the
scales for the achievement of organisation objective.
DEFINITION
According to Edwin Flippo, “Performance appraisal is the systematic, periodic and an

impartial rating of an employee‘s excellence in matters pertaining to his present job and his
potential for a better job”.
PURPOSE OF PERFORMANCE APPRAISAL
The following are the main purposes of performance appraisal.
1. Appraisal Procedure: It provides a common and unified measure of performance appraisal,

so that all employee are evaluated in the same manner. It gives an in discriminatory rating of
all the employees.

2. Decision Making: Performance appraisal of the employees is extremely useful in the

decision making process of the organization. In selection, training, promotion, pay increment
and in transfer, performance appraisal is very useful tool.
3. Work Performance Records: Performance appraisal gives us a complete information in the

form of records regarding every employee. In the case of industrial disputes even arbitrator
accepts these records in the course of grievance handling procedure.
4. Employees Development: Performance appraisal guides the employees in removing their

defects and improving their working. The weaknesses of the employee recorded in the
performance appraisal provide the basis for an individual development programme. If
properly recorded and used, the performance appraisal gives the fair opportunities to
employees to correct and rectify their mistakes.
5. Enables Supervisors to be More Alert and Competent: Performance appraisal enables

supervisor to be more alert and competent and to improve the quality of supervision by
giving him a complete record of employee's performance. He can guide an employee, where
he is prone to commit mistakes.
6. Merit Rating: Merit rating is another name of performance appraisal, it gives supervisors a
more effective tool for rating their personnel. It enables them to make more careful analysis
of employee's performance and make them more productive and useful.
7. Improves Employer Employee Relations: Performance appraisal is not only a useful guide
for the supervisors and employees but it improves the employer-employee relations by
creating a more conductive and amicable atmosphere in the organization. It also stimulates
free exchange of thoughts and ideas between the supervisor and his men. In this way
performance appraisal bridges the emotional gap between the employer and employee by
bringing them more close and by reducing man-to-man differences in the organization.
METHODS OR TECHNIQUES OF PERFORMANCE APPRAISAL
Traditional Methods of Performance Appraisal: There are different techniques/methods

which are used for performance appraisal of employees. Some of the methods of performance
appraisal are:
1. Ranking Method: Ranking method is the oldest and simplest method of rating. Here,
each employee is compared with all others performing the same job and then he is given

a particular rank i.e. First Rank, Second Rank etc. It states that A is superior to B. B is
superior to C and so on. This method ranks all employees but it does not tell us the
degree or extent of superiority i.e. by how much one employee is superior to another.
Secondly, this ranking is based on only mental assessment so it is not possible to give
any objective proof about why the rater has ranked one employee as superior to another.
In this method, the performance of individual employee is not compared with the standard
performance. Here, the best is given first rank and poorest gets the last rank. The ranking
method is highly subjective. Similarly, here the employees are compared as a whole.
Comparison of the various parts of an employee's performance is not done.
2. Grading Method: Under this method of performance appraisal, different grades are
developed for evaluating the ability of different employees and then the employees are placed
in these grades. These grades may be as follows:
(i) Excellent;
(ii) very good;
(iii) Good;
(iv) Average;
(v) Bad;
(vi) Worst.
3. Man-to-Man Comparison Method: This method was first used in USA army during the 1st
World War. Under this method, few factors are selected for analysis purposes. These factors
are: leadership, dependability and initiative. After that a scale is designed by the rate for each
factor. A scale of person is also developed for each selected factor. Each person to be rated is
compared with the person in the scale, and certain scores for each factor are awarded to
him/her. In other words, instead of comparing a whole man to a whole man personnel are
compared to the key man in respect of one factor at a time.
4. Graphic Rating Scale Method of Performance Appraisal: This is the very popular,
traditional method of performance appraisal. Under this method, scales are established for a
number of fairly specific factors. A printed form is supplied to the rater. The form contains a
number of factors to be rated. Employee characteristics and contributions include qualities

like quality of work, dependability, creative ability and so on. These traits are then evaluated
on a continuous scale, where the rater places a mark somewhere along the scale. The scores
are tabulated and a comparison of scores among the different individuals is made. These
scores indicate the work of every individual.
MODERN METHOD OF APPRAISAL AND CAREER DEVELOPMENT
Most of the traditional methods emphasize either on the task or the worker‘s personality,
while making an appraisal. For bringing about a balance between these two, modern methods,
have been developed. The details of these methods are as follows:
1. Management by Objective (MBO): It was Peter F. Drucker who first gave the concept of
MBO to the world in 1954 when his book The Practice of Management was first published.
Management by objective can be described as, a process whereby the superior and
subordinate managers of an organisation jointly identify its common goals, define each
individual‘s major areas of responsibility in terms of results expected of him and use these
measures as guides for operating the unit and assessing the contribution of each of its
members.
2. 360o Appraisal: In 360-degree performance appraisal technique a manager is rated by

everyone above, alongside and below him. 360 degree approach is essentially a fact-finding,
self-correcting technique, used to design promotions. The personality of each top manager –
their talents, behavioural traits, values, ethical standards, tempers, loyalties – is to be scanned,
by their colleagues as they are best placed to diagnose their suitability for the job
requirements. In this method a question are is structured to collect required data about a
manager from his bosses, peers, subordinates. 360-degree approach of assessment provides
equal opportunity to evaluate the efforts of the top manager or managers in running a
company effectively. It focuses on the intrinsic qualities of the manager as well as his
capacity to lead. It also gives feedback to all assesses on their styles.
MERITS OF 360-DEGREE APPROACH
The merits of the technique are -
1. The organisation gains from the self-awareness of the top managers. It reveals strengths
and weaknesses in their managing styles.
2. The gap between self-assessment and the views of one‘s colleagues is reduced.

3. Teamwork thrives once peer group assessment is included in the methodology.
4. Empowerment is facilitated.
5. Facts about the organizational culture are brought to light.
6. Inflexible managers are forced to initiate change in their style:
DEMERIT OF 360-DEGREE APPROACH
The main drawbacks of this approach are as follows -
1. 360-degree approach can be utilized to humiliate people.
2. Response from colleagues tends to be biased.
3. Linking rewards to findings can prove to be unfair.
4. The results could be uneven. This technique identifies most suitable and acceptable person
for the consideration of promotion. 360-degree approach supports the company‘s progress
and rewarding the excellent performance of an individual.
LIMITATIONS OF PERFORMANCE APPRAISAL
The main limitations of Performance Appraisal are explained below:
1. Time Consuming: Performance appraisal is a time taking affair. It is a very lengthy process
under which different forms are to be filled in and various observations are required to be
noted in a careful manner.
2. Lack of Reliability: Reliability implies stability and consistency in the measurement. Lack
of consistency over time and among different raters may reduce the reliability of performance
appraisal.
3. Incompetence: Raters may fail to evaluate performance accurately due to lack of

knowledge and experience. Post appraisal interview is often handled ineffectively.
4. No Uniform Standards: The standards used for appraisal purpose are not uniform within
the same organisation. This makes the rating unscientific. Similarly, the rating is done on the
basis of an overall impression, which is not proper.

5. Absence of Effective Participation of Employees: In performance appraisal effective

participation of concerned employee is essential. In many methods of appraisal he is given a
passive role. He is evaluated but his participation or self-evaluation is rather absent.
6. Resistance of Employees to Appraisal: Employees oppose the system as they feel that the
system is only for showing their defects and for punishing them. The managers resist the
system as they are not willing to criticize their subordinates or have no capacity to guide them
for self-improvement or selfdevelopment.
7. Paperwork: Some supervisors feel that performance appraisal is paperwork. They make
such complaints because many a times, performance appraisal reports are found only in the
files rather than rendering any practical use.
8. Fear of Spoiling Relations: Performance appraisals may also affect superior-subordinate

relations. As appraisal makes the superior more of a judge rather than a coach, the
subordinate may look upon the superior with a feeling of a suspicion and mistrust.
9. Stereotyping: This implies forming a mental picture of a person on the basis of his age,
sex, caste or religion. It results in an over-simplified view and blurs the assessment of job
performance.
10. Negative Approach: Performance appraisal loses most of its value when the focus of
management is on punishment rather than on development of employees.
11. Multiple Objectives: Raters may get confused due to too many objectives or unclear
objective of performance appraisal.
12. Resistance: Trade unions may resist performance appraisal on the ground that it involves
discrimination among its members. Negative ratings may affect interpersonal relations and
industrial relations particularly when employees/unions do not have faith in the system of
performance appraisal.
13. Halo Effect: Generally, there is the presence of a halo ‘effect which leads to a tendency to
rate the same individual first, which once have stood first.


Unit: 1 Outline:: BBA II Semester Human Resource Management

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Unit: 1 Outline:: BBA II Semester Human Resource Management

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BBA II Semester Human Resource Management

MEANING AND DEFINITIONS OF HUMAN RESOURCE MANAGEMENT

According to Flippo, “Personnel management or human resource management is the planning

According to National Institute of Personnel Management of India, “Personnel management

Human resource management is known by different names, e.g., personnel management,

OBJECTIVES OF HUMAN RESOURCE MANAGEMENT

2. To enhance job satisfaction and self-actualization of employees by encouraging and

3. To establish and maintain productive, self-respecting and internally satisfying working

4. To bring about maximum individual development of members of the organization by

a) Attain economically and effectively the organizational goals.

b) Serve to the highest possible degree the individual goals.

c) Preserve and promote the general welfare of the community.

NATURE / CHARACTERISTICS OF HRM

a) Comprehensive function (h) People-oriented

b) Action-oriented (i) Individual-oriented

c) Development-oriented (j) Pervasive function

d) Continuous function (k) Future-oriented

e) Challenging function (l) Science as well as art

f) Staff function (m) Young discipline

g) Interdisciplinary (n) Nervous system

IMPORTANCE OF HUMAN RESOURCE MANAGEMENT

1. SIGNIFICANCE FOR AN ENTERPRISE - Human resource management can help an

(c) Securing willing co-operation of employees through motivation, participation, grievance

(d) Utilizing effectively the available human resources.

(a) Providing maximum opportunities for personal development of each employee.

(c) Allocating work properly.

4. NATIONAL SIGNIFICATION - Human resources and their management plays a vital

a) Increase in the size and complexity of organization e.g. a multinational corporation

b) Rapid technological developments like automation, computerization, etc.

c) Rise of professional and knowledgeable workers.

d) Increasing proportion of women in the workforce.

e) Growth of powerful nationwide trade unions.

g) Revolution in information technology that might affect the work force.

h) Rapidly changing jobs and skills requiring long-term manpower planning.

i) Growing expectations of society from employers.

j) Rising costs and shortage of highly trained labour.

FUNCTIONS OF HUMAN RESOURCE MANAGEMENT

1. PLANNING - A plan is a predetermined course of action. Planning is the process of

2. ORGANIZING - In order to implement the plans, a sound organization structure is

3. DIRECTING - Directing is the process of motivating, activating, leading and supervising

4. CONTROLLING - It implies checking, verifying and regulation to ensure that everything

1. PROCUREMENT FUNCTION: It is concerned with securing and employing the right

2. DEVELOPMENT FUNCTION: Human resource development is the process of

(c) Executive Development: It is the process of developing managerial talent through

3. COMPENSATION FUNCTION: It refers to providing equitable and fair remuneration to

4. INTEGRATION FUNCTION: It is the process of reconciling the goals of the

5. MAINTENANCE FUNCTION: It is concerned with protecting and promoting the

STATUS OF HUMAN RESOURCE MANAGER

2. The law man

3. The catering man

4. The welfare man

5. The productivity man

The McKinsey 7S Framework is a management model developed by well-known business

Hard Elements Soft Elements

HUMAN RESOURCE PLANNING

 Guarantee ample supply of resources, whenever there is a need for it.

 To foresee the potential requirements of manpower at various skill levels.

 Manage the resources that are already employed in the organization.

NEED FOR HUMAN RESOURCE PLANNING

The need of HRP may arise because of the following reasons:

5. Human Resource Planning is required to meet the requirements of diversification and

Importance of Human Resource Planning