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Annamalai University
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ANNAMALAI UNIVERSITY
DIRECTORATE OF DISTANCE EDUCATION
Copyright Reserved
(For Private Circulation Only)
MASTER OF BUSINESS ADMINISTRATION (M.B.A)
M.B.A. E-BUSINESS
M.B.A.HUMAN RESOURCE MANAGEMENT
M.B.A.MARKETING MANAGEMENT
M.B.A.FINANCIAL MANAGEMENT
M.B.A. HOSPITAL MANAGEMENT
FIRST SEMESTER
HUMAN RESOURCE MANAGEMENT
Editorial Board
Chairman
Dr. N. Ramagopal
Dean
Faculty of Arts
Annamalai University
Annamalainagar
Members
Dr. R. Singaravel Dr. P. Vijayan
Director Director
D.D.E. Academic Affairs
Annamalai University Annamalai University
Dr. G. Udayasuriyan Dr. S. Arulkumar
Professor and Head Associate Professor and Dy. Coordinator
Department of Business Administration Management Wing, DDE
Annamalai University Annamalai University
Internals
Externals
2 Functions of HRM 11
4 HR Policy 27
Unit - II : Human Resource Planning, Recruitment and Selection
5 Human Resource Planning 37
6 Recruitment 50
7 Selection 61
8 Interview 72
Unit - III : Job Analysis and Evaluation
9 Job Analysis 80
11 Job Evaluation 97
14 Training 121
18 Discipline 165
19 Compensation 174
• In realistic philosophy, the needs of the organization are matched with the
needs of the applicants, which enhance the effectiveness of the recruitment
process. In realistic approach, the employees who are recruited will stay in
the organization for a longer period of time and will perform at higher level of
effectiveness.
6.3.4 Sources of Recruitment
Sources of Recruitment
After the finalization of recruitment plan indicating the number and type of
prospective candidates, they must be attracted to offer themselves for consideration
to their employment. This necessitates the identification of sources from which
these candidates can be attracted. Some companies try to develop new sources,
while most only try to tackle the existing sources they have. These sources,
accordingly, may be termed as internal and external.
Internal Sources
It would be desirable to utilize the internal sources before going outside to
attract the candidates. Yoder and others suggest two categories of internal sources
including a review of the present employees and nomination of candidates by
employees. Effective utilisation of internal sources necessitates an understanding of
their skills and information regarding relationships of jobs. This will provide
possibilities for horizontal and vertical transfers within the enterprise eliminating
simultaneous attempts to lay off employees in one department and recruitment of
employees with similar qualification for another department in the company.
Promotion and transfers within the plant where an employee is best suitable
improves the morale along with solving recruitment problems. These measures can
be taken effectively if the company has established job families through job analysis
programmes combining together similar jobs demanding similar employee
characteristics. Again, employees can be requested to suggest promising
candidates. Sometimes, employees are given prizes for recommending a candidate
who has been recruited. Despite the usefulness of this system in the form of loyalty
and its wide practice, it has been pointed out that it gives rise to cliques posing
difficulty to management. Therefore, before utilising this system attempts should be
made to determine through research whether or not employees thus recruited are
effective on particular jobs. Usually, internal sources can be used effectively if the
numbers of vacancies are not very large, adequate, employee records are
maintained, jobs do not demand originality lacking in the internal sources, and
employees have prepared themselves for promotions.
Merits of Internal Sources
The following are the merits of internal sources of recruitment:
• It creates a sense of security among employees when they are assured that
they would be preferred in filling up vacancies.
• It improves the morale of employees, for they are assured of the fact that
they would be preferred over outsiders when vacancies occur.
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• It promotes loyalty and commitment among employees due to sense of job
security and opportunities for advancement.
• The employer is in a better position to evaluate those presently employed
than outside candidates. This is because the company maintains a record of
the progress, experience and service of its employees.
• Time and costs of training will be low because employees remain familiar
with the organization and its policies. Relations with trade unions remain
good. Labour turnover is reduced. As the persons in the employment of the
company are fully aware of, and well acquainted wit, its policies and know
its operating procedures, they require little training, and the chances are
that they would stay longer in the employment of the organization than a
new outsider would.
• It encourages self-development among the employees. It encourages good
individuals who are ambitious.
• It encourages stability from continuity of employment.
• It can also act as a training device for developing middle and top-level
managers.
Demerits of Internal Sources: However, this system suffers from certain
defects as:
• There are possibilities that internal sources may “dry up”, and it may be
difficult to find the requisite personnel from within an organization.
• It often leads to inbreeding, and discourages new blood from entering and
organization.
• As promotion is based on seniority, the danger is that really capable hands
may not be chosen. The likes and dislikes of the management may also play
an important role in the selection of personnel.
• Since the learner does not know more than the lecturer, no innovations
worth the name can be made. Therefore, on jobs which require original
thinking (such as advertising, style, designing and basic research), this
practice is not followed.
• This source is used by many organizations; but a surprisingly large number
ignore this source, especially for middle management jobs.
External Sources
DeCenzo and Robbins remark, “Occasionally, it may be necessary to bring in
some ‘new blood’ to broaden the present ideas, knowledge, and enthusiasm.” Thus,
all organisations have to depend on external sources of recruitment.
Among these sources are included:
• Employment agencies.
• Educational and technical institutes. and
• Casual labour or “applicants at the gate” and nail applicants.
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Public and private employment agencies play a vital role in making available
suitable employees for different positions in the organisations. Besides public
agencies, private agencies have developed markedly in large cities in the form of
consultancy services. Usually, these agencies facilitate recruitment of technical and
professional personnel. Because of their specialisation, they effectively assess the
needs of their clients and aptitudes and skills of the specialised personnel. They do
not merely bring an employer and an employee together but computerise lists of
available talents, utilising testing to classify and assess applicants and use
advanced techniques of vocational guidance for effective placement purposes.
Educational and technical institutes also form an effective source of manpower
supply. There is an increasing emphasis on recruiting student from different
management institutes and universities commerce and management departments
by recruiters for positions in sales, accounting, finance, personnel and production.
These students are recruited as management trainees and then placed in special
company training programmes. They are not recruited for particular positions but
for development as future supervisors and executives. Indeed, this source provides
a constant flow of new personnel with leadership potentialities.
Frequently, this source is tapped through on-campus interview with promising
students. In addition, vocational schools and industrial training institutes provide
specialised employees, apprentices, and trainees for semiskilled and skilled jobs.
Persons trained in these schools and institutes can be placed on operative and
similar jobs with a minimum of in-plant training. However, recruitment of these
candidates must be based on realistic and differential standards established
through research reducing turnover and enhancing productivity. Frequently,
numerous enterprises depend to some extent upon casual labour or “applicants at
the gate” and nail applicants. The candidates may appear personally at the
company’s employment office or send their applications for possible vacancies.
Explicitly, as Yoder and others observe, the quality and quantity of such candidates
depend on the image of the company in community. Prompt response to these
applicants proves very useful for the company.
However, it may be noted that this source is uncertain, and the applicants
reveal a wide range of abilities necessitating a careful screening. Despite these
limitations, it forms a highly inexpensive source as the candidates themselves come
to the gate of the company. Again, it provides measures for good public relations
and accordingly, all the candidates visiting the company must be received cordially.
As Jucius observes, trade unions are playing an increasingly important role in
labour supply. In several trades, they supply skilled labour in sufficient numbers.
They also determine the order in which employees are to be recruited in the
organisation. In industries where they do not take active part in recruitment, they
make it a point that employees laid off are given preference in recruitment.
Application files also forms a useful source of supply of work force. Attempts may
be made to review the application to determine jobs for which the candidates filed
for future use when there are openings in these jobs. The candidates may be
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requested to renew their cards as many times as they desire. All the renewed cards
may be placed in “active” files and those not renewed for considerable time may be
placed in “inactive” file or destroyed. Indeed, a well-indexed application file provides
utmost economy from the standpoint of a recruiting budget. Efficacy of alternative
sources of supply of human resources should be determined through research.
Attempts may be made to relate the factor of success on the job with a specific
source of supply. Alternative sources can also be evaluated in terms of turnover,
grievances and disciplinary action. Those sources which are significantly positively
related with job performance and significantly negatively related with turnover,
grievances and disciplinary action, can be effectively used in recruitment
programmes. The assessment should be periodically performed in terms of
occupations. It may be that source “A” is most effective for technical workers, while
source “B” for semiskilled workers.
Advantages of External Recruitment
External sources of recruitment are suitable for the following reasons:
• It will help in bringing new ideas, better techniques and improved methods
to the organization.
• The cost of employees will be minimized because candidates selected in this
method will be placed in the minimum pay scale.
• The existing employees will also broaden their personality.
• The entry of qualitative persons from outside will be in the interest of the
organisation in the long run.
• The suitable candidates with skill, talent, knowledge are available from
external sources.
• The entry of new persons with varied expansion and talent will help in
human resource mix.
Disadvantages of External Sources
• Orientation and training are required as the employees remain unfamiliar
with the organization.
• It is more expensive and time-consuming. Detailed screening is necessary as
very little is known about the candidate.
• If new entrant fails to adjust himself to the working in the enterprise, it
means yet more expenditure on looking for his replacement.
• Motivation, morale and loyalty of existing staff are affected, if higher level
jobs are filled from external sources.
• It becomes a source of heart-burning and demoralization among existing
employees.
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Methods of Recruitment
Methods of recruitment are different from the sources of recruitment. Sources
are the locations where prospective employees are available. On the other hand,
methods are way of establishing links with the prospective employees. Various
methods employed for recruiting employees may be classified into the following
categories:
1. Direct Methods
These include sending recruiters to educational and professional institutions,
employees, contacts with public, and manned exhibits. One of the widely used
direct methods is that of sending of recruiters to colleges and technical schools.
Most college recruiting is done in co-operation with the placement office of a college.
The placement office usually provides help in attracting students, arranging
interviews, furnishing space, and providing student resumes. For managerial,
professional and sales personnel campus recruiting is an extensive operation.
Persons reading for MBA or other technical diplomas are picked up in this manner.
For this purpose, carefully prepared brochures, describing the organization
and the jobs it offers, are distributed among students, before the interviewer
arrives. Sometimes, firms directly solicit information from the concerned professors
about students with an outstanding record. Many companies have found employees
contact with the public a very effective method. Other direct methods include
sending recruiters to conventions and seminars, setting up exhibits at fairs, and
using mobile offices to go to the desired centres.
2. Indirect Methods
The most frequently used indirect method of recruitment is advertisement in
newspapers, journals, and on the radio and television. Advertisement enables
candidates to assess their suitability. It is appropriate when the organization wants
to reach out to a large target group scattered nationwide. When a firm wants to
conceal its identity, it can give blind advertisement in which only box number is
given. Considerable details about jobs and qualifications can be given in the
advertisements. Another method of advertising is a notice-board placed at the gate
of the company.
3. Third-Party Methods
The most frequently used third-party methods are public and private
employment agencies. Public employment exchanges have been largely concerned
with factory workers and clerical jobs. They also provide help in recruiting
professional employees. Private agencies provide consultancy services and charge a
fee. They are usually specialized for different categories of operatives, office workers,
salesmen, supervisory and management personnel. Other third-party methods
include the use of trade unions. Labour management committees have usually
demonstrated the effectiveness of trade unions as methods of recruitment.
Several criteria discussed in the preceding section for evaluating sources of
applicants can also be used for assessing recruiting methods. Attempts should be
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made to identify how the candidate was attracted to the company. To accomplish
this, the application may consist of an item as to how the applicant came to learn
about the vacancy. Then, attempts should be made to determine the method which
consistently attracts good candidates. Thus, the most effective method should be
utilized to improve the recruitment programme.
6.4 REVISION POINTS
1. Recruitment is the process of searching for prospective employees and
stimulating them to apply for jobs in the organization
2. The factors affecting recruitment can be classified as internal and external
factors.
3. The recruitment policy is concerned with quantity and qualifications of
manpower.” It establishes broad guidelines for the staffing process
4. Sources of Recruitment- internal and external
5. Methods of recruitment -Direct Methods, Indirect Methods, Third-Party Methods.
6.5 INTEXT QUESTIONS
1. Define recruitment and identify the various factors which affect recruitment.
2. Discuss the steps of recruitment process. How will you reconcile the internal
and external sources of recruitment?
3. Discuss various sources of recruitment.
4. Write short notes on following.
• Advantages and disadvantages of internal sources of recruitment.
• Advantages and disadvantages of external source of recruitment.
6.6 SUMMARY
Recruitment forms a step in the process which continues with selection and
ceases with the placement of the candidate. It is the next step in the procurement
function, the first being the manpower planning. Recruiting makes it possible to
acquire the number and types of people necessary to ensure the continued
operation of the organisation. Thus, recruitment process is concerned with the
identification of possible sources of human resource supply and tapping those
sources.
Recruitment process involves five elements, viz., a recruitment policy, a
recruitment organization, the development of sources of recruitment, and different
techniques used for utilizing these sources, and a method of assessing the
recruitment programme. After the finalization of recruitment plan indicating the
number and type of prospective candidates, they must be attracted to offer
themselves for consideration to their employment. This necessitates the
identification of sources from which these candidates can be attracted.
Some companies try to develop new sources, while most only try to tackle the
existing sources they have. These sources, accordingly, may be termed as internal
and external. Methods of recruitment are different from the sources of recruitment.
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Sources are the locations where prospective employees are available. On the other
hand, methods are way of establishing links with the prospective employees.
Various methods employed for recruiting employees may be classified into direct
methods, indirect methods and third party methods.
6.7 TERMINAL EXERCISE
Fill in the blanks:
1. The process of searching for prospective employees and stimulating them to
apply for jobs in the organization is called _________.
2. The factors affecting recruitment can be classified as __________ and
__________ factors.
3. The most frequently used ____________ method of recruitment is
advertisement in newspaper, journals, radio and television.
4. The way of establishing links with the prospective employees are called
___________.
5. The most frequently used third-party method of recruitment are public and
private ____ agencies.
6.8 SUPPLEMENTARY MATERIALS
1. Mamoria C.B., Gankar S.V., (2006), “A Textbook of Human Resource
Management”, Himalaya Publishing House, New Delhi.
2. Dwivedi R.S., (1997), “Personnel Management in Indian Enterprises”,
Galgotia Publishing Company, New Delhi.
3. Devid A. Decenzo, Stephen P. Robbins (2002), “Personnel/Human Resource
Management”, Prentice Hall of India, New Delhi.
6.9 ASSIGNMENTS
1. In your own words explain methods of recruitment
2. Bring out the Merits and Demerits of internal source of Recruitment
6.10 SUGGESTED READING /REFERENCE BOOKS/SET BOOKS
1. Prasad L.M., (2005), Human Resource Management,” Sultan Chand & Sons
New Delhi.
2. Dessler Gary (2010), “Personnel Management”, Prentice Hall International
Editions, New Jersey.
3. Carrell Michael R., Elbert Norbert F., Hatfield Robert D. (1999), “Human
Resource Management,” Prentice Hall, Englewood Cliffs, New Jersey.
6.11 LEARNING ACTIVITIES
1. Explain the indirect method of recruitment in corporate sector.
6.12 KEYWORDS
Internal, External, Source, Advantage, Disadvantage, Methods.
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LESSON –7
SELECTION
7.1 INTRODUCTION
Human resource selection is the process of choosing qualified individuals who
are available to fill positions in an organization. In the ideal personnel situation,
selection involves choosing the best applicant to fill a position. Selection is the
process of choosing people by obtaining and assessing information about the
applicants with a view to matching these with the job requirements. It involves a
careful screening and testing of candidates who have put in their applications for
any job in the enterprise. It is the process of choosing the most suitable persons out
of all the applicants.
The purpose of selection is to pick up the right person for every job. It can be
conceptualized in terms of either choosing the fit candidates, or rejecting the unfit
candidates, or a combination of both. Selection involves both because it picks up
the fits and rejects the benefits. In fact, in Indian context, there are more
candidates who are rejected than those who are selected in most of the selection
processes. Therefore, sometimes, it is called a negative process in contrast to
positive programme of recruitment.
7.2 OBJECTIVES
After reading this lesson, you should be able to
• To point out the outcomes of selection decision.
• To understand in brief about placement and orientation.
• To develop a selection decision process.
7.3 CONTENTS
7.3.1 Meaning
7.3.2 Importance of Selection
7.3.3 Selection Policy
7.3.4 Steps in Selection Process
7.3.1 Meaning
According to Dale Yoder, “Selection is the process in which candidates for
employment are divided into two classes-those who are to be offered employment
and those who are not”.
According to Thomas Stone, “Selection is the process of differentiating
between applicants in order to identify (and hire) those with a greater likelihood of
success in a job”.
In the words of Michael Jucius, “The selection procedure is the system of
functions and devices adopted in a given company for the purpose of ascertaining
whether or not candidates possess the qualifications called for by a specific job or
for progression through a series of jobs.”
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According to Keith Davis, “Selection is the process by which an organization
chooses from a list of screened applicants, the person or persons who best meet the
selection criteria for the position available.” Thus, the selection process is a tool in
the hands of management to differentiate between the qualified and unqualified
applicants by applying various techniques such as interviews, tests etc. The cost
incurred in recruiting and selecting any new employee is expensive. The cost of
selecting people who are inadequate performers or who leave the organization
before contributing to profits proves a major cost of doing business. DeCenzo and
Robbins write, “Proper selection of personnel is obviously an area where
effectiveness - choosing competent workers who perform well in their position-can
result in large saving.” According to them, selection has two objectives: (1) to
predict which job applicants would be successful if hired and (2) to inform and sell
the candidate on the job and the organization. Satisfaction of employee needs and
wants as well as the fullest development of his potential are important objectives of
selection.
Dale Yoder says, “Selection has long held a high rank in the priority of
problem areas in management. Investments in good people produce a very high rate
of return. A good choice of people can provide a basis for long, sustained
contributions.”
7.3.2 Importance of Selection
Various steps of selection process including selection tests are meant to solicit
information about the candidates so as to arrive at a decision to select the most
desirable candidates out of the several available. Since only some information is
available from other sources like application forms, references, etc., selection tests
are used to solicit more information about the candidates.
Therefore, the use of selection tests has many advantages:
1. Selection tests are standardized and unbiased methods of soliciting
information about the prospective employees. Thus, a person who does not get
selected on the basis of selection tests cannot argue for the partiality in selection
process. It is to be noted that in many organizations, impartiality in selection
process is of prime importance like public sector organizations.
2. Selection tests can be used to weed out the large number of candidates who
may not be considered for employment in the organization. Normally, organizations
receive applications from large number of candidates seeking jobs in the
organization. They all meet the basic requirements of the jobs, but all cannot be
called for interview because it is a very time-consuming process. Selection tests will
provide the cutoff point above which candidates can be called for interview. Thus,
the tests will save lot of time and money.
3. The tests are able to uncover the qualities and potentials of prospective
employees, which cannot be known by other methods including personal interview.
Since the people are taken in the organization not only for the present jobs but they
are promoted over the period of time, tests provide good opportunities to test their
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potentials for such promotions also. Thus, tests are more reliable source for
predicting the overall suitability of candidates for the employment.
7.3.3 Selection Policy
• The selection process refers to the steps involved in choosing someone who
has the right qualifications to fill a current or future job opening.
There are five main steps in the selection process. First, criteria are developed
to determine how the person will be chosen. Second is a review of the applications
and résumés, often done via a computer program that can find keywords. Next is
interviewing the employee. The last steps involve testing, such as a personality test
or drug test, and then finally, making the offer to the right candidate.
7.3.4 Steps in Selection Process
The selection procedure is concerned with securing relevant information about
an applicant. This information is secured in a number of steps or stages. The
objective of selection process is to determine whether an applicant meets the
qualification for a specific job and to choose the applicant who is most likely to
perform well in that job. Selection is a long process, commencing from the
preliminary interview of the applicants and ending with the contract of employment
(sometimes). The selection procedure consists of a series of steps. Each step must
be successfully cleared before the applicant proceeds to the next. The selection
process is a series of successive hurdles or barriers which an applicant must cross.
These hurdles are designed to eliminate an unqualified candidate at any point in
the selection process. Thus, this technique is called “Successive Hurdles
Technique”. In practice, the process differs among organizations and between two
different jobs within the same organization. Selection procedure for the senior
managers will be long drawn and rigorous, but it is simple and short while hiring
lower level employees.
The major factors which determine the steps involved in a selection process are as
follows:
• Selection process depends on the number of candidates that are available for
selection.
• Selection process depends on the sources of recruitment and the method
that is adopted for making contact with the prospective candidates.
• Various steps involved in as selection process depend on the type of
personnel to be selected. All the above factors are not mutually exclusive,
rather these operate simultaneously. In any case, the basic objective of a
selection process is to collect as much relevant information about the
candidates as is possible so that the most suitable candidates are selected. A
comprehensive selection process involves the various steps as shown below
1. Application Pool: Application pool built-up through recruitment process is
the base for selection process. The basic objective at the recruitment level is to
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attract as much worthwhile applications as possible so that there are more options
available at the selection stage.
2. Preliminary Screening and Interview: It is highly noneconomic to
administer and handle all the applicants. It is advantageous to sort out unsuitable
applicants before using the further selection steps. For this purpose, usually,
preliminary interviews, application blank lists and short test can be used. All
applications received are scrutinised by the personnel department in order to
eliminate those applicants who do not fulfill required qualifications or work
experience or technical skill, his application will not be entertained. Such candidate
will be informed of his rejection. Preliminary interview is a sorting process in which
the prospective candidates are given the necessary information about the nature of
the job and the organization. Necessary information is obtained from the candidates
about their education, skills, experience, expected salary etc. If the candidate is
found suitable, he is elected for further screening. This courtesy interview; as it is
often called helps the department screen out obvious misfits. Preliminary interview
saves time and efforts of both the company and the candidate. It avoids
unnecessary waiting for the rejected candidates and waste of money on further
processing of an unsuitable candidate. Since rejection rate is high at preliminary
interview, the interviewer should be kind, courteous, receptive and informal.
3. Application Blank or Application Form: An application blank is a
traditional widely accepted device for getting information from a prospective
applicant which will enable the management to make a proper selection. The
blank provides preliminary information as well as aid in the interview by
indicating areas of interest and discussion. It is a good means of quickly
collecting verifiable (and therefore fairly accurate) basic historical data from the
candidate. It also serves as a convenient device for circulating information about
the applicant to appropriate members of management and as a useful device for
storing information for, later reference. Many types of application forms,
sometimes very long and comprehensive and sometimes brief, are used.
Information is generally taken on the following items:
(a) Biographical Data: Name, father’s name, data and place of birth, age, sex,
nationality, height, weight, identification marks, physical disability, if any, marital
status, and number of dependants.
(b) Educational Attainment: Education (subjects offered and grades secured),
training acquired in special fields and knowledge gained from professional
/technical institutes or through correspondence courses.
(c) Work Experience: Previous experience, the number of jobs held with the
same or other employers, including the nature of duties, and responsibilities and
the duration of various assignments, salary received, grades, and reasons for
leaving the present employer.
(d) Salary and Benefits: Present and expected.
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(e) Other Items: Names and addresses of previous employers, references, etc.
An application blank 1is a brief history sheet of an employee’s background and can
be used for future reference, in case needed. The application blank must be
designed from the viewpoint of the applicant as well as with the company’s purpose
in mind. It should be relatively easy to handle in the employment office. Application
form helps to serve many functions like:
• Its main usefulness is to provide information for reference checking, good
interviewing, and correlation with testing data.
• It helps to weed out candidates who are lacking in education, experience or
some other eligibility traits.
• It helps in formulating questions to be asked in the interview. Data
contained in application form can be stored for future reference.
• It also tests the candidate’s ability to write, to organize his thoughts, and to
present facts clearly and succinctly.
• It indicates further whether the applicant has consistently progressed to
better jobs. It provides factual information.
Weighted Application Blanks
Some organizations assign numeric values or weights to the responses
provided by the applicants. This makes the application form more job related.
Generally, the items that have a strong relationship to job performance are given
higher scores. For example, for a sales representative’s position, items such as
previous selling experience, area of specialisation, commission earned, religion,
language etc. The total score of each applicant is then obtained by adding the
weights of the individual item responses. The resulting scores are then used in the
final selection. WAB is best suited for jobs where there are many employees
especially for sales and technical jobs. It can help in reducing the employee
turnover later on. However, there are several problems associated with WAB e.g.
• It takes time to develop such a form.
• The WAB would have to be updated every few years to ensure that the
factors previously identified are still valid products of job success.
• The organization should be careful not to depend on weights of a few items
while finally selecting the employee.
4. Selection Tests
Many organizations hold different kinds of selection tests to know more about
the candidates or to reject the candidates who cannot be called for interview etc.
Selection tests normally supplement the information provided in the application
forms. Such forms may contain factual information about candidates. Selection
tests may give information about their aptitude, interest, personality, which cannot
be known by application forms. Types of tests and rules of good of testing have
been discussed in brief below:
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A. Aptitude Tests: These measure whether an individual has the capacity or
talent ability to learn a given job if given adequate training. These are more useful
for clerical and trade positions.
B. Personality Tests: At times, personality affects job performance. These
determine personality traits of the candidate such as cooperativeness, emotional
balance etc. These seek to assess an individual’s motivation, adjustment to the
stresses of everyday life, capacity for interpersonal relations and self-image.
C. Interest Tests: These determine the applicant’s interests. The applicant is
asked whether he likes, dislikes, or is indifferent to many examples of school
subjects, occupations, amusements, peculiarities of people, and particular
activities.
D. Performance Tests: In this test the applicant is asked to demonstrate his
ability to do the job. For example, prospective typists are asked to type several
pages with speed and accuracy.
E. Intelligence Tests: This aim at testing the mental capacity of a person with
respect to reasoning, word fluency, numbers, memory, comprehension, picture
arrangement, etc. It measures the ability to grasp, understand and to make
judgement.
F. Knowledge Tests: These are devised to measure the depth of the knowledge
and proficiency in certain skills already achieved by the applicants such as
engineering, accounting etc.
G. Achievement Tests: Whereas aptitude is a capacity to learn in the future,
achievement is concerned with what one has accomplished. When applicants claim
to know something, an achievement test is given to measure how well they know it.
H. Projective Tests: In these tests the applicant projects his personality into
free responses about pictures shown to him which are ambiguous.
Rules of Good Testing
• Norms should be developed for each test. Their validity and reliability for a
given purpose should be established before they are used.
• Adequate time and resources must be provided to design, validate, and
check tests.
• Tests should be designed and administered only by trained and competent
persons.
• The user of tests must be extremely sensitive to the feelings of people about
tests.
• Tests are to be uses as a screening device.
• Reliance should not be placed solely upon tests in reaching decisions.
• Tests should minimize the probabilities of getting distorted results. They
must be ‘race-free’.
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• Tests scores are not precise measures. They must be assigned a proper
weightage.
Note:
The following selection Process steps were explained detail in upcoming
chapters. For the reader understanding the next five steps are given below briefly.
5. Interview: An interview is a procedure designed to get information from a
person and to assess his potential for the job he is being considered on the basis of
oral responses by the applicant to oral inquiries by the interviewer. Interviewer does
a formal in-depth conversation with the applicant, to evaluate his suitability. It is
one of the most important tools in the selection process. This tool is used when
interviewing skilled, technical, professional and even managerial employees. It
involves two-way exchange of information. The interviewer learns about the
applicant and the candidate learns about the employer.
6. Background Investigation: The next step in the selection process is to
undertake an investigation of those applicants who appear to offer potential as
employees. This may include contacting former employers to confirm the
candidate’s work record and to obtain their appraisal of his or her performance/
contacting other job-related and personal references, and verifying the educational
accomplishments shown on the application.
The background investigation has major implications. Every personnel
administrator has the responsibility to investigate each potential applicant. In some
organization, failure to do so could result in the loss of his or her job. But many
managers consider the background investigation data highly biased. Who would
actually list a reference that would not give anything but the best possible
recommendation? The seasoned personnel administrator expects this and delves
deeper into the candidate’s background, but that, too, may not prove to be
beneficial. Many past employers are reluctant to give any information to another
company other than factual information (e.g., date of employment).
Even though there is some reluctance to give this information, there are ways
in which personnel administrators can obtain it. Sometimes, for instance
information can be obtained from references once removed. For example, the
personnel administrator can ask a reference whose name has been provided on the
application form to give another reference, someone who has knowledge of the
candidate’s work experience. By doing this, the administrator can eliminate the
possibility of accepting an individual based on the employee’s current employer’s
glowing recommendation when the motivation for such a positive recommendation
was to get rid of the employee.
7. Physical Examination: After the selection decision and before the job offer
is made, the candidate is required to undergo physical fitness test. Candidates are
sent for physical examination either to the company’s physician or to a medical
officer approved for the purpose. Such physical examination provides the following
information.
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• Whether the candidate’s physical measurements are in accordance with job
requirements or not?
• Whether the candidate suffers from bad health which should be corrected?
• Whether the candidate has health problems or psychological attitudes likely
to interfere with work efficiency or future attendance?
• Whether the candidate is physically fit for the specific job or not?
• Policy on these physical exams has changed today. Dale Yoder writes,
“Modem policy used the physical examination not to eliminate applicants,
but to discover what jobs they are qualified to fill. The examination should
is close the physical characteristics of the individual that are significant
from the standpoint of his efficient performance of the job he may enter or of
those jobs to which he may reasonably expect to be transferred or promoted.
It should note deficiencies, not as a basis for rejection, but as indicating
restrictions on his transfer to various positions also.”
8. Approval by Appropriate Authority: On the basis of the above steps,
suitable candidates are recommended for selection by the selection committee or
personnel department. Though such a committee or personnel department may
have authority to select the candidates finally, often it has staff authority to
recommend the candidates for selection to the appropriate authority. Organizations
may designate the various authorities for approval of final selection of candidates
for different categories of candidates. Thus, for top level managers, board of
directors may be approving authority; for lower levels, even functional heads
concerned may be approving authority.
9. Final Employment Decision: After a candidate is finally selected, the
human resource department recommends his name for employment. The
management or board of the company offers employment in the form of an
appointment letter mentioning the post, the rank, the salary grade, the date by
which the candidate should join and other terms and conditions of employment.
Some firms make a contract of service on judicial paper. Usually an appointment is
made on probation in the beginning. The probation period may range from three
months to two years. When the work and conduct of the employee is found
satisfactory, he may be confirmed. The personnel department prepares a waiting
list and informs the candidates. In case a person does not join after being selected,
the company calls next person on the waiting list.
10. Evaluation: The selection process, if properly performed, will ensure
availability of competent and committed personnel. A period audit, conducted by
people who work independently of the human resource department, will evaluate
the effectiveness of the selection process. The auditors will do a thorough and the
intensive analysis and evaluate the employment programme.
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7.4 REVISION POINTS
1. Selection is the process in which candidates for employment are divided into
two classes-those who are to be offered employment and those who are not.
2. There are five main steps in the selection process. First, criteria are
developed to determine how the person will be chosen. Second is a review of
the applications and résumés, often done via a computer program that can
find keywords. Next is interviewing the employee. The last steps involve
testing, such as a personality test or drug test, and then finally, making the
offer to the right candidate.
3. Aptitude Tests: These measure whether an individual has the capacity or
talent ability to learn a given job if given adequate training. These are more
useful for clerical and trade positions.
4. Personality Tests: At times, personality affects job performance. These
determine personality traits of the candidate such as cooperativeness,
emotional balance etc. These seek to assess an individual’s motivation,
adjustment to the stresses of everyday life, capacity for interpersonal
relations and self-image.
5. Interest Tests: These determine the applicant’s interests. The applicant is
asked whether he likes, dislikes, or is indifferent to many examples of school
subjects, occupations, amusements, peculiarities of people, and particular
activities.
6. Performance Tests: In this test the applicant is asked to demonstrate his
ability to do the job. For example, prospective typists are asked to type
several pages with speed and accuracy.
7. Intelligence Tests: This aim at testing the mental capacity of a person with
respect to reasoning, word fluency, numbers, memory, comprehension,
picture arrangement, etc. It measures the ability to grasp, understand and
to make judgement.
8. Knowledge Tests: These are devised to measure the depth of the knowledge
and proficiency in certain skills already achieved by the applicants such as
engineering, accounting etc.
9. Achievement Tests: Whereas aptitude is a capacity to learn in the future,
achievement is concerned with what one has accomplished. When
applicants claim to know something, an achievement test is given to
measure how well they know it.
10. Projective Tests: In these tests the applicant projects his personality into free
responses about pictures shown to him which are ambiguous.
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7.5 INTEXT QUESTIONS
1. What do you understand by selection process? Discuss various steps
involved in it.
2. What is application blank? What purpose does it serve? Explain the contents
of an application blank.
3. Discuss the characteristics of a good test. Explain various types of tests
used in the selection process.
4. What is an interview? What purpose does it serve? Discuss various types of
interviews.
5. Discuss various guidelines to be followed for an interview.
6. Explain various steps involved in the selection of personnel.
7.6 SUMMARY
Selection is the process of picking up individuals out of the pool of the job
applicants with requisite qualifications and competence to fill jobs in the
organisation. Proper selection can minimize the costs of replacement and training,
reduce legal challenges, and result in a more productive work force. The discrete
selection process would include the following.
• Application Pool,
• Preliminary Screening and Interview,
• Application Blank or Application Form,
• Selection Tests,
• Interview
• Background Investigation,
• Physical Examination,
• Approval by Appropriate Authority,
• Final Employment Decision,
• Evaluation
Selection process involves mutual decision making. The organization decides
whether or not to make a job offer and how attractive the job offer should be. The
candidate decides whether or not the organization and the job offer is according to
his goals and needs. Selection of proper personnel helps the management in getting
the work done by the people effectively. To be an effective predictor, a selection
device should be
• Reliable
• Valid
• Predict a relevant criterion.
In India the selection process on hiring skilled and managerial personnel are
fairly well defined and systematically practical.
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7.7 TERMINAL EXERCISE
Fill in the blanks:
1. The purpose of ___________ is to pick up the right person for every job.
2. ___________ are standardized and unbiased methods of soliciting information
about the prospective employees.
3. The test used to measure an individual’s capacity or talent ability is called
_____________.
4. An _____________ is a procedure designed to get information from a person
and to assess his potential for the job.
5. The test conducted to measure the depth of knowledge and proficiency of
applicants is ______.
7.8 SUPPLEMENTARY MATERIALS
1. Dessler Gary (2001), “Personnel Management”, Prentice Hall International
Editions, New Jersey.
2. Carrell Michael R., Elbert Norbert F., Hatfield Robert D. (1999), “Human
Resource Management,” Prentice Hall, Englewood Cliffs, New Jersey.
3. Mamoria C.B., Rao, VSP (2012) Personnal Management (Text and cases),
Himalayas Publishing, Mumbai.
7.9 ASSIGNMENTS
1. How would you handle this?
Poor Interviewer
As the assistant to the HR manager, one of your jobs is to help managers get
ready to interview candidates. When you offer help to Johnathan, he says he has
interviewed hundreds of people and doesn’t need your help in planning the
interview process. When you sit in the interview with him, he asks inappropriate
questions that you don’t feel really assess the abilities of a candidate. How would
you handle this?
7.10 SUGGESTED READING /REFERENCE BOOKS/SET BOOKS
1. Mamoria C.B., Gankar S.V., (2006), “A Textbook of Human Resource
Management”, Himalaya Publishing House, New Delhi.
2. Dwivedi R.S., (1997), “Personnel Management in Indian Enterprises”,
Galgotia Publishing Company, New Delhi.
3. Devid A. Decenzo, Stephen P. Robbins (2002), “Personnel/Human Resource
Management”, Prentice Hall of India, New Delhi.
4. Prasad L.M., (2005), Human Resource Management,” Sultan Chand & Sons,
New Delhi.
7.11 LEARNING ACTIVITIES
1. Develop criteria for the position of a retail salesperson working in teams.
2. Describe the advantages and disadvantages of hiring an internal and
external candidate. Give an example of when you don’t think an external
candidate should be considered for a position.
7.12 KEYWORDS
Selection, Test, Interview, Application, Examination, Evaluation.
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LESSON – 8
INTERVIEW
8.1 INTRODUCTION
The spoken word is usually the greatest source of investigative evidence and
often the best evidence. The primary goal of an interview is to elicit and record
information from the complainant, subject, and every important witness. Your
investigation is not complete until you have accomplished this goal.
Effective interviewing is a skill that must be learned by specialized training and/or
experience. Most people learn to interview by watching others or constant
practicing. Learning the basic concepts of the proper way to conduct an interview
and practicing these methods is critical to your success as an interviewer.
8.2 OBJECTIVES
After reading this lesson, you should be able to
• To discern how interview obtain additional information from the candidate.
• To know how interview facilitates giving to the candidate information about
the job, company, its policies, products etc.
• To be familiar with how interview assess the basic suitability of the
candidate.
8.3 CONTENTS
8.3.1 Meaning and Role of Interview
8.3.2 Types of Interview
8.3.3 Limitations
8.3.4 Guidelines for Effective Interview
8.3.5 Placement
8.3.1 Meaning and Role of Interview
The basic idea is to find out overall suitability of candidates for the jobs. It also
provides opportunity to give relevant information about the organization to the
candidates. In many cases, interview of preliminary nature can be conducted before
the selection tests.
Role of Interview
We must try and understand that interviews are so essential in the selection
process that many times, selection of the candidates is made on the basis of}
interview alone. If handled properly, interview contributes in, the following, ways:
It is the only method of direct contact between the candidates and the
employer in which the employer can see a candidate in” action-how he looks, his
manner, his wearing, his appearance, etc., method of interaction and answering
etc.
1. Many of the information can be sought through the interview which may not
be available in application form, or cannot be disclosed by the selection
tests, such as: family background, future plans; etc.
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2. The ‘interview can be used as a tool for giving information about the
organization, its policies, nature of the work to be performed by the
candidate salary and other benefits to be offered. Negotiations, if any, about
the salary and- perks to be offered to the candidate can also be undertaken.
Hence we should remember that interview can be used ‘as a method to
promote goodwill among the candidates by offering courtesy, by providing
vocational literature, by constructive suggestions, and by showing interest in them.
8.3.2 Types of Interview
Types of interviews: Interviews can be classified in various ways according to:
1. Degree of Structure
2. Purpose of Interview
3. Content of Interview
(A) Degree of Structure
(1) Unstructured or non directive: in which you ask questions as they come
to mind. There is no set format to follow.
(2) Structured or directive: in which the questions and acceptable responses
are specified in advance. The responses are rated for appropriateness of content.
Structured and non-structured interviews have their pros and cons. In
structured interviews all applicants are generally asked all required questions by all
interviewers. Structured interviews are generally more valid. However structured
interviews do not allow the flexibility to pursue points of interests as they develop.
(B) Purpose of Interview
A selection interview is a type of interview designed to predict future job
performance, on the basis of applicant’s responses to the oral questions asked to
him.
A stress interview is a special type of selection interview in which the
applicant is made uncomfortable by series of awkward and rude questions. The aim
of stress interview is supposedly to identify applicant’s low or high stress tolerance.
In such an interview the applicant is made uncomfortable by throwing him on the
defensive by series of frank and often discourteous questions by the interviewer.
(C) Content of Interview
The content of interview can be of a type in which individual’s ability to project
a situation is tested. This is a situation type interview.
In job-related interview, interviewer attempts to assess the applicant’s past
behaviors for job related information, but most questions are not considered
situational.
In a behaviour interview a situation in described and candidates are asked
how they behaved in the past in such a situation. While in situational interviews
candidates are asked to describe how they would react to situation today or
tomorrow. In the behavioral interview they are asked to describe how they did react
to the situation in the past.
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Principles of Interviewing
To make it effective, an interview should be properly planned and conducted
on certain principles; Edwin B. Flippo has described certain rules and principles of
good interviewing to this end:
• Provide proper surroundings. The physical setting for the interview should
be both private and comfortable.
• The mental setting should be one of rapport. The interviewer must be aware
of non-verbal behaviour.
• Plan for the interview by thoroughly reviewing job specifications and job
descriptions.
• Determine the specific objectives and the method of the interviewing.
• Inform yourself as much as possible concerning the known information
about the interviewee.
• The interviewer should possess and demonstrate a basic liking and respect
for people.
• Questions should be asked in a manner that encourages the interviewee to
talk. Put the applicant at ease.
• Make a decision only when all the data and information are available. Avoid
decisions that are based on first impressions.
• Conclude the interview tactfully, making sure that the candidate leaves
feeling neither too related nor frustrated.
• Maintain some written record of the interview during or immediately after it.
• Listen attentively and, if possible, protectively.
• Questions must be stated clearly to avoid confusion and ambiguity.
Maintain a balance between open and overtly structured questions.
• ‘Body language’ must not be ignored.
• The interviewer should make some overt sign to indicate the end of the
interview.
• Interviewing is largely an art, the application of which can be improved
through practice.
8.3.3 Limitations
• Admonition of silence
• Dissemination of results of interview
• Presence of attorney and/or union representative
• Use of recorders
• Interviewee demand for information
• Emotional outbursts
• Interruptions
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8.3.4 Guidelines for Effective Interview
• Greet the interviewee in an appropriate manner.
• Establish rapport.
• Define or state the purpose of the interview.
• Maintain control; don’t let the interviewee interview you.
• Ask one question at a time.
• Evaluate each piece of information or allegation on its own merit.
• Maintain strict impartiality and keep an open mind.
• Keep your talking to a minimum.
• Keep the interviewee at ease.
• React to disclosures appropriately.
• Be non-judgmental.
• Limit barriers between you and the interviewee.
• Don’t let the interviewee interview you.
• Avoid arguing with the interviewee.
• Listen before taking action.
• Take your time. Don’t hurry.
• Be a good listener.
• Accept the interviewee’s feelings.
• Use appropriate questioning techniques, as described in this chapter.
• Use silence, when appropriate to force a response.
• Make no promises.
• Ask questions that develop or explain facts, such as questions that begin
with Who, What, When, Where, Why, and How. Ask questions in a
conversational manner.
• Use transitions to connect thoughts, starting with known information and
working toward areas of undisclosed information.
• Use leading questions as a technique for making transitions from one topic
to another.
• Use terms that are familiar to the interviewee and avoid using acronyms.
• Ask a general opening question.
• Match the interviewee’s verbal pace.
• Ask questions in a logical progression based on the sequence of events.
• Follow open-ended questions with specific questions.
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• Ask what the complainant/interviewee expects or wants to happen as a
result of the information he/she provides.
• Take breaks often.
• Don’t argue.
• Ask if there is any other issue or information the IG should know or
anything else the interviewee would like to add.
• Set up a time for continuation, if necessary.
• Extend your appreciation.
• Close the interview appropriately.
To elicit information from reluctant interviewees:
• Tell interviewees the information will be used “For Official Use Only”.
• Avoid the word confidential.
• Explain the Freedom of Information Act (FOIA) and the Privacy Act.
8.3.5 Placement
According to Pigors and Myers, “Placement consists in matching what the
supervisor has reason to think the new employee can do with what the job
demands (job requirements), imposes (in strain, working conditions, etc.), and
offers (in the form of pay rate, interest, companionship with other, promotional
possibilities, etc.)” They further state that it is not easy to match all these factors
for a new worker who is still in many ways an unknown quantity. For this reason,
the first placement usually carries with it the status of probationer.
A few basic principles should be followed at the time of placement of an employee on the
job.
These may be enumerated as below:
• The job should be offered to the man according to his qualifications. The
placement should neither be higher nor lower than the qualifications.
• While introducing the job to the new employee, an effort should be made to
develop a sense of loyalty and cooperation in him so that he may realize his
responsibilities better towards the job and the organization.
• The employee should be made conversant with the working conditions
prevailing in the industry and all things relating to the job. He should also
be made aware of the penalties if he commits a wrong.
• Man should be placed on the job according to the requirements of the job.
The job should not be adjusted according to the qualifications or
requirements of the man. Job first; man next, should be the principle of
placement.
• The placement should be ready before the joining date of the newly selected
person.
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• The placement in the initial period may be temporary as changes are likely
after the completion of training. The employee may be later transferred to
the job where he can do better justice.
After selecting a candidate, he should be placed on a suitable job. Placement is
the actual posting of an employee to a specific job. It involves assigning a specific
rank and responsibility to an employee. The line manager takes the placement
decisions after matching the requirements of a job with the qualification of a
candidate.
The employee will also suffer seriously. He may quit the organization in
frustration, complaining bitterly about everything. Proper placement is, therefore,
important to both the employee and the organization. The benefits of placements
may be summarized thus,
Major Benefits of Proper Placement
The employee is able to:
• Show good results on the job.
• Get along with people easily.
• Keep his spirits high, report for duty regularly.
• Avoid mistakes and accidents.
8.4 REVISION POINTS
1. The basic idea is to find out overall suitability of candidates for the jobs. It
also provides opportunity to give relevant information about the organization
to the candidates.
2. Types of interviews: Interviews can be classified in various ways according
to:
• Degree of Structure b. Purpose of Interview c. Content of Interview.
3. Limitations- Admonition of Silence, Dissemination of Results of Interview.
4. Guidelines For Effective Interview-Greet The Interviewee In An Appropriate
Manner, Establish Rapport.
5. Placement consists in matching what the supervisor has reason to think the
new employee can do with what the job demands (job requirements),
imposes (in strain, working conditions, etc.), and offers (in the form of pay
rate, interest, companionship with other, promotional possibilities, etc.)”.
They further state that it is not easy to match all these factors for a new
worker who is still in many ways an unknown quantity. For this reason, the
first placement usually carries with it the status of probationer.
8.5 INTEXT QUESTIONS
1. Explain the various types of interviews and interview questions.
2. Discuss interview methods and potential mistakes in interviewing
candidates.
3. Explain the interview process.
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8.6 SUMMARY
Most organizations put new recruits on probation for a given period of time,
after which their services are confirmed. During this period, the performance of the
probationer is closely monitored. If the new recruit fails to adjust himself to the job
and turns out poor performance, the organization may consider his name for
placement elsewhere. Such second placement is called ‘differential placement.
Usually the employees’ supervisor, in consultation with the higher levels of line
management, takes decisions regarding the future placement of each employee.
Placement is an important human resource activity. If neglected, it may create
employee adjustment problems leading to absenteeism, turnover, accidents, poor
performance, etc.
8.7 TERMINAL EXERCISE
Fill in the blanks:
1. The only method of direct contact between the candidates and the employer
is ________.
2. The interview in which a situation is described and candidates are asked
how they behaved in the past is such a situation is called _________
interview.
3. __________ consists in matching what the supervisor thinks the new
employee can do with what the job demands, imposes and offers.
4. __________ is the key to successful interviewing.
5. A special type of selection interview in which the applicant is made
uncomfortable by series of awkward and rude questions is ________
interview.
8.8 SUPPLEMENTARY MATERIALS
1. Gary Dessler, Human Resource Management, Prentice Hall of India Private
Limited, New Delhi.
2. Lawrence S. Kleiman, Human Resource Management, Biztantra Innovations
in Management, New Delhi, 2003.
3. Arthur Sherman, George Bohlander & Scott Snell, Managing Human
Resources, An International Thomson Publishing Company.
8.9 ASSIGNMENTS
1. With a partner, develop a list of five examples (not already given in the
lesson) of situational and behavioral interview questions.
2. Why is it important to determine criteria and interview questions before
bringing someone in for an interview?
3. Visit Monster.com and find two examples of job postings that ask those with
criminal records not to apply. Do you think, given the type of job, this is a
reasonable criteria?
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8.10 SUGGESTED READING /REFERENCE BOOKS/SET BOOKS
1. C.B. Mamoria and S.V. Gankar, A textbook of Human Resource
Management, Himalaya Publishing House, 2003.
2. K. Aswathappa, Human Resource and Personnel Management: Text and
Cases, Tata McGraw-Hill Publishing Company Limited, New Delhi, 2002.
3. V.S.P. Rao, Human Resource Management: Text and Cases, Excel Books,
New Delhi, 2002.
8.11 LEARNING ACTIVITIES
1. Explain yourself: When was the last time you interviewed for a job? Did the
process seem to flow smoothly? Why or why not?
8.12 KEYWORDS
Interview, Placement, Guidelines, Limitations, Effective Interview.
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UNIT – III : JOB ANALYSIS AND EVALUATION
LESSON – 9
JOB ANALYSIS
9.1 INTRODUCTION
In this lesson we will be discussing the nature and use of Job Analysis. Let us
first try to understand what is job analysis. You must understand that Job analysis
provides the basis for determining what types of information should be obtained
from the applicant, from previous employers, and from other sources.
Even though many companies are laying off substantial portions of their
workforces, employee selection is a vital part of HRM. Personnel selection is
important in the building of a productive workforce. Determining the qualifications
of job candidates requires that as much information as possible be obtained from
the candidates and other sources. It is important for you to understand that the
information that is collected should be relevant for to the job and sufficiently
reliable and valid. HR practitioners should have an understanding of job
requirements to permit an analysis of application forms, employment tests,
interviews, and reference checks of individual candidates.
9.2 OBJECTIVES
After reading this lesson, you should be able to
• Define job analysis.
• Understand the basic steps in a job analysis.
• Identify the major methods of collecting Job analysis data.
9.3 CONTENTS
9.3.1 Meaning and Purpose of Job and Job Analysis
9.3.2 Uses of Job Analysis
9.3.3 Steps in Job Analysis
9.3.4 Techniques in Job Analysis
9.3.1 Meaning and Purpose of Job and Job Analysis
Manpower planning is concerned with determination of quantitative and
qualitative requirements of manpower for the organization. Determination of
manpower requirements is one of the most important problems in manpower
planning. Job analysis and job design, provide this knowledge. Before going
through the mechanism of job analysis and job design, it is relevant to understand
the terms which are used in job analysis and job design.
Job: A job may be defined as a “collection or aggregation of tasks, duties and
responsibilities which as a whole, are regarded as a regular assignment to
individual employees,” and which is different from other assignments, In other
words, when the total work to be done is divided and grouped into packages, we call
it a “job.” Each job has a definite title based upon standardized trade specifications
within a job; two or more grades may be identified, where the work assignment may
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be graded according to skill, the difficulty of doing them, or the quality of
workmanship. Thus, it may be noted that a position is a “collection o tasks and
responsibilities regularly assigned to one person;” while a job is a “group of
position, which involve essentially the same duties, responsibilities, skill and
knowledge.” A position consists of a particular set of duties assigned to an
individual.
Decenzo and P. Robbins define other terms as follows:
Task: It is a distinct work activity carried out for a distinct purpose.
Duty: It is a number of tasks.
Position: It refers to one or more duties performed by one person in an
organization, There are at least as many positions as there are workers in
the organization; vacancies may create more positions than employees.
Job: It is a type of position within the organization.
Job Family: It is group of two or more jobs that either call for similar worker
characteristics or contain parallel work tasks as determined by job analysis.
Occupation: It is a group of similar jobs found across organizations.
Career: It represents a sequence of positions, jobs, or occupations that a person
has over his working life.
Job Analysis Defined
Developing an organizational structure, results in jobs which have to be
staffed. Job analysis is the procedure through which you determine the duties and
nature of the jobs and the kinds of people (in terms of skills and experience) who
should be hired for them.’ It provides you with data on job requirements, which are
then used for developing job descriptions (what the job entails) and job
specifications (what kind of people to hire for the job). Some of the definitions of job
analysis ate given as follows, to understand the meaning of the term more clearly:
According to Michael L. Jucius, “Job analysis refers to the process of
studying the operations, duties and organizational aspects of jobs in order to derive
specifications or as they called by some, job descriptions.”
According to DeCenzo and P. Robbins, “A job analysis is a systematic
exploration of the activities within a job. It is a basic technical procedure, one that
is used to define the duties, responsibilities, and accountabilities of a job.”
According to Herbert G Herman “A job is a collection of tasks that can be
performed by a single employee to contribute to the production of some product or
service provided by the organization. Each job has certain ability requirements (as
well as certain rewards) associated with it. Job analysis process used to identify
these requirements.”
Flippo has offered a more comprehensive definition of job analysis as,
“Job analysis is the process of studying and collecting information relating to the
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operations and responsibilities of a specific job. The immediate products of the
analysis are job descriptions and job specifications”.
Thus, job analysis involves the process of identifying the nature of a job (job
description) and the qualities of the likely job holder (job specification).
9.3.2 Uses of Job Analysis
1. Achievement of Goals: Weather and Davis have stated, “Jobs are at the
core of every organization’s productivity, if they are designed well and done right,
the organization makes progress towards its objectives. Otherwise, productivity
suffers, profits fall, and the organization is less able to meet the demands of society,
customer, employees, and other with a stake in its success.”
2. Organizational Design: Job analysis will be useful in classifying the jobs
and the interrelationships among the jobs. On the basis of information obtained
through job analysis, sound decisions regarding hierarchical positions and
functional differentiation can be taken and this will improve operational efficiency.
3. Organization and Manpower Planning: It is helpful in organization
planning, for it defines labour in concrete terms and co-ordinates the activities of
the work force, and clearly divides duties and responsibilities.
4. Recruitment and Selection: Job analysis provides you with information on what
the job entails and what human requirements are required to carry out these activities.
This information is the basis on which you decide what sort of people to recruit and hire.
5. Placement and Orientation: Job analysis helps in matching the job
requirements with the abilities, interests and aptitudes of people. Jobs will be
assigned to persons on the basis of suitability for the job. The orientation
programme will help the employee in learning the activities and understanding
duties that are required to perform a given job more effectively.
6. Employee Training and Management Development: Job analysis
provides the necessary information to the management of training and development
programmes. It helps in to determine the content and subject matter of in training
courses. It also helps in checking application information, interviewing test results
and in checking references.
7. Job Evaluation and Compensation: Job evaluation is the process of
determining the relative worth of different jobs in an organization with a view to link
compensation, both basic and supplementary, with the worth of the jobs. The worth
of a job is determined on the basis of job characteristics and job holder
characteristics. Job analysis provides both in the forms of job description and job
specification.
8. Performance Appraisal: Performance appraisal involves comparing each
employee’s actual performance with his or her desired performance. Through job
analysis industrial engineers and other experts determine standards to be achieved
and specific activities to be performed.
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9. Health and Safety: It provides an opportunity for identifying hazardous
conditions and unhealthy environmental factors so that corrective measures may
be taken to minimize and avoid the possibility of accidents.
10. Employee Counseling: Job analysis provides information about career
choices and personal limitation. Such information is helpful in vocational guidance
and rehabilitation counseling. Employees who are unable to cope with the hazards
and demands of given jobs may be advised to opt for subsidiary jobs or to seek
premature retirement.
9.3.3 Steps in Job Analysis
The six steps of job analysis are shown in figure
Making is done?
Work output – what physical activities, tools and machines are used? 49
Relationships – what contact with other people, both in the company and 36
Job context- what is the physical and social context in which the job is 19
Maintained?
Job Summary
Originate, process, and maintain comprehensive records; implement required controls;
collect and summarize data as requested.
Job Duties and Responsibilities
• Review a variety of documents, listings, summarizes, etc, for completeness and
accuracy.
• Check records against other current sources such as reports or summaries;
investigate differences and take required action to ensure that records are accurate
and up to date; compile and summarize data report format as required.
• Implement controls or obtaining, preserving, and supplying a variety of information.
• Prepare simple requisitions, forms, and other routine memoranda.
• Provide functional guidance to lower-level personnel as required.
Working Conditions
Normal working conditions. But visits sites on average twice a week. Eight hours per day
Relationships
• With equivalent officers in other departments.
• Maintains formal and social contacts with local officials .
Job Characteristics:
Skilled operation of computer, calculating machine, or key punch machine is not
necessarily a requirement of this job.
The above information is correct and approved by: (Signed)
(Signed)
1. Orientation training
Also known as induction training given for the new recruits in order to make
them familiarize with the internal environment of an organization. It helps the
employees to understand the procedures, code of conduct, policies existing in that
organization.
2. Job instruction training
This training provides an overview about the job and experienced trainers
demonstrates the entire job. Addition training is offered to employees after
evaluating their performance if necessary.
3. Safety Training
Training provided to minimiz
minimizee accidents and damage to machinery is known
as safety training. It involves instruction in the use of safety devices and in safety
consciousness.
4. Promotional Training
It involves training of existing employees to enable them to perform higher level
jobs.
bs. Employees with potential are selected and they are given training before their
promotion, so that they do not find it difficult to shoulder the higher responsibilities
of the new positions to which they are promoted.
5. Refresher training
This type of training is offered in order to incorporate the latest development in
a particular field. This training is imparted to upgrade the skills of employees. This
training can also be used for promoting an employee.
6. Remedial Training
Such training is arranged to overcome the shortcomings in the behavior and
performance of old employees. Some of the experienced employees might have picked
up appropriate methods and styles of working. Such employees are identified and
correct work methods and procedure
proceduress are taught to them. Remedial training
should be conducted by psychological experts.
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Inputs to Training
Any training and development programme must contain inputs which enable the
participants to gain skills, learn theoretical concepts and help acquire vision to look
into the distant future. The inputs of training and development are as follows:
Any training and development programme must contain inputs which enable
the participants to gain skills, learn theoretical concepts and help acquire vision to
look
ook into the distant future. The inputs of training and development are as follows:
1) Skills
Training is imparting skills to the employees. A worker needs skills to operate
machines, and use other equipments with least damage and scrap. This is basic
skills without which the operator will not function.
There is also a need of motor skills or psychomotor skills as they are refer to
performance of specific physical activities .These skills involve learning to move
various parts of their body in response to certain external and internal stimuli.
Employees particularly like supervisors and executives, need interpersonal skills
mostly know as people skills. These skills helps a person understand oneself and
others better and act accordingly. Examples of inte interpersonal
rpersonal skills include
listening. Persuading and showing an understanding of others feelings
2) Education
The purpose of education is to teach theoretical concepts and develop a sense
of reasoning and judgment. That any training and development programme must
contain an element of education is well understood by the HR specialist.
In fact, sometimes, organizations depute or encourage employees to do courses
on a part time basis. Chief executive officers (CEO’s) are known to attend refresher
course conducteded in many Business schools. The late Manu Chabria, CMD, Shaw
Wallace, attended such a two month programme at the Harvard business school.
Education is more important for managers and executives than for lower-cadre
lower
workers.
3) Development
Another componentt of a training and development programme is development
which is less skill – oriented but stress on knowledge. Knowledge about business
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environment, management principles and techniques, human relations, specific
industry analysis and the like is useful for better management of a company.
Development programme should help an employee to be a self-starter, build
sense of commitment, motivation, which should again help him being self-
generating. It should make their performance result oriented and help them in
being more efficient and effective. It should also help in making the employee
sensitive towards the environment that is his work place and outside. This
programme should keep the employee aware of him i.e. his potentials and his
limitations. Help him see himself as others see him and accept his self-image as a
prelude to change. It helps teach an individual to communicate without filters, to
see and feel points of view different from their own. Also helps them understand the
powers in their hands and thereby develop leadership styles which inspire and
motivate others. And finally helps install a zest for excellence, a divine discontent, a
nagging dissatisfaction with the status quo.
4) Ethics
There is a need for imparting greater ethical orientation to a training and
development programme. There is no denial of the fact that ethics are largely
ignored in businesses. They are less seen and talked about in the personnel
function this does not mean that the HR manager is absolved if the responsibility. If
the production, finance or marketing personnel indulge in unethical practices the
fault rest on the HR manager. It is his/her duty to enlighten all the employees in
the organization about the need for ethical behaviour.
5) Attitudinal Changes
Attitudinal represents feelings and beliefs an individual towards others.
Attitudes affect motivation, satisfaction and job commitment. Negative attitudes
needs to be converted into positive attitudes. Changing negative attitudes is difficult
because of,
(1) Employees refuse to change
(2) They have prior commitments and
(3) Information needed to change attitudes may not be sufficient.
Attitude must be changed so that the employee feels committed to the organization
and give better performance.
6) Decision making and problem solving skills
Decision making and problem solving skill focus on methods and techniques
for making organizational decision and solve work related problems. Learning
related to decision making and problem solving skills seeks to improve trainee’s
abilities to define and structure problems, collect and analysis information,
generate alternatives. Training of this type is typically provided to potential
managers, supervisors and professionals.
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Training Needs Assessment
The purpose of a training needs assessment is to identify performance
requirements and the knowledge, skills, and abilities needed by an agency's
workforce to achieve the requirements. An effective training needs assessment will
help direct resources to areas of greatest demand. The assessment should address
resources needed to fulfill organizational mission, improve productivity, and provide
quality products and services. A needs assessment is the process of identifying the
"gap" between performance required and current performance. When a difference
exists, it explores the causes and reasons for the gap and methods for closing or
eliminating the gap. A complete needs assessment also considers the consequences
for ignoring the gaps.
There are three levels of a training needs assessment
• Organizational assessment evaluates the level of organizational
performance. An assessment of this type will determine what skills,
knowledge, and abilities an agency needs. It determines what is required to
alleviate the problems and weaknesses of the agency as well as to enhance
strengths and competencies, especially for Mission Critical Occupation's
(MCO). Organizational assessment takes into consideration various
additional factors, including changing demographics, political trends,
technology, and the economy.
• Occupational assessment examines the skills, knowledge, and abilities
required for affected occupational groups. Occupational assessment
identifies how and which occupational discrepancies or gaps exist,
potentially introduced by the new direction of an agency. It also examines
new ways to do work that can eliminate the discrepancies or gaps.
• Individual assessment analyzes how well an individual employee is doing a
job and determines the individual's capacity to do new or different work.
Individual assessment provides information on which employees need
training and what kind.
The Training Needs Assessment Process
Determine Agency Benefits of Needs Assessment- this part of the process
will sell and help the decision makers and stakeholders understand the concept of
the needs assessment. Needs assessment based on the alignment of critical
behaviors with a clear agency mission will account for critical occupational and
performance requirements to help your agency: a) eliminate redundant training
efforts, b) substantially reduce the unnecessary expenditure of training dollars, and
c) assist managers in identifying performance requirements that can best be
satisfied by training and other developmental strategies. To go beyond learning and
actually achieve critical behaviors the agency will also need to consider how
required drivers will sustain desired outcomes.
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Key steps include:
• Identify key stakeholders
• Solicit support
• Describe desired outcomes that will contribute to mission objectives
• Clarify critical behaviors needed to achieve desired outcomes
• Define required drivers essential to sustain the critical behaviors
1. Plan - The needs assessment is likely to be only as successful as the
planning.
• Set goals/objectives for the needs assessment
• Evaluate organizational (agency) readiness and identify key roles
• Evaluate prior/other needs assessments
• Prepare project plan
• Inventory the capacity of staff and technology to conduct a meaningful
training skills assessment and analysis
• Clarify success measures and program milestones
2. Conduct Needs Assessment
• Obtain needs assessment data (e.g., review strategic plans, assess HR
metrics, review job descriptions, conduct surveys, review performance
appraisals)
• Analyze data
• Define performance problems/issues: occupational group/individuals
• Describe critical behaviours needed to affect problems/issues
• Determine and clarify why critical behaviours do not currently exist
• Research integrated performance solutions
• If training is the best solution, determine best training and development
approach(es)
• Assess cost/benefit of training and development approach(es); build a
"business case"
• Include organizational drivers needed to reinforce the critical behaviors
that will affect problems/issues
• Describe how the critical behaviors will be monitored and assessed after
implementation of the improvement plan
The results of the needs assessment allows the training manager to set the
training objectives by answering two very basic questions: what needs to be done,
and why is it not being done now? Then, it is more likely that an accurate
identification of whom, if anyone, needs training and what training is needed.
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Sometimes training is not the best solution, and it is virtually never the only
solution. Some performance gaps can be reduced or eliminated through other
management solutions, such as communicating expectations, providing a
supportive work environment, and checking job fit. These interventions also are
needed if training is to result in sustained new behaviors needed to achieve new
performance levels, for an individual, an occupation, or an entire organization.
14.3.5 Steps to Organizing Effective Training Programs
An effective training program is built by following a systematic, step-by step
process. Training initiatives that stand alone (one-off events) often fail to meet
organizational objectives and participant expectations. In today’s post we outline
the five necessary steps to creating an effective program.
1) Assess Training Needs: The first step in developing a training program is to
identify and assess needs. Employee training needs may already be established in
the organization’s strategic, human resources or individual development plans. If
you’re building the training program from scratch (without predetermined
objectives) you’ll need to conduct training needs assessments.
2) Set Organizational Training Objectives: The training needs assessments
(organizational, task & individual) will identify any gaps in your current training
initiatives and employee skill sets. These gaps should be analyzed and prioritized
and turned into the organization’s training objectives. The ultimate goal is to bridge
the gap between current and desired performance through the development of a
training program. At the employee level, the training should match the areas of
improvement discovered through 360 degree evaluations.
3) Create Training Action Plan: The next step is to create a comprehensive
action plan that includes learning theories, instructional design, content, materials
and any other training elements. Resources and training delivery methods should
also be detailed. While developing the program, the level of training and
participants’ learning styles need to also be considered. Many companies pilot their
initiatives and gather feedback to make adjustments before launching the program
company-wide.
4) Implement Training Initiatives: The implementation phase is where the
training program comes to life. Organizations need to decide whether training will
be delivered in-house or externally coordinated. Program implementation includes
the scheduling of training activities and organization of any related resources
(facilities, equipment, etc.). The training program is then officially launched,
promoted and conducted. During training, participant progress should be
monitored to ensure that the program is effective.
5) Evaluate & Revise Training: As mentioned in the last segment, the
training program should be continually monitored. At the end, the entire program
should be evaluated to determine if it was successful and met training objectives.
Feedback should be obtained from all stakeholders to determine program and
instructor effectiveness and also knowledge or skill acquisition. Analyzing this
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feedback will allow the organization to identify any weaknesses in the program. At
this point, the training program or action plan can be revised if objectives or
expectations are not being met.
14.4 REVISION POINTS
1. Training: Training refers to the teaching and learning activities carried on
for the primary purpose of helping members of an organization acquire and
apply the knowledge, skills, abilities, and attitudes needed by a particular
job and organization.
2. Types of Training: Various types of training can be given to the employees
such as induction training, refresher training, on the job training, vestibule
training, and training for promotions.
3. Inputs to training: Any training and development programme must
contain inputs which enable the participants to gain skills, learn theoretical
concepts and help acquire vision to look into the distant future.
14.5 INTEXT QUESTIONS
1. An HR manager conducts new employee orientation for a large organization.
His/her work is within which basic HRM function?
a. Management
b. Motivation
c. Career planning
d. Training and Development
3. Employee involvement require extensive additional HRM activity in which of
these areas?
a. Training
b. Benefits
c. Labour negotiation
d. Marketing
4. The cost associated with employee separation and turnover includes
a. Recruitment and selection costs
b. Training cost
c. Separation cost
d. all of these
5. Training instruction for a small group, which employs techniques such as
role-playing or simulation and involves give-and-take session and problem
solving techniques, is called:
a. Career counselling
b. Workshop
c. Development plan
d. d)on-the-job orientation
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6. Which of the following measures is taken to access employee’s satisfaction
and their attitude towards the training programme?
a. Continuous feedback
b. Profitability rate
c. Market share
d. Productivity levels
7. Evaluation of training programme is conducted:
a. At the initial stage while designing the training programme
b. Prior to the need assessment phase
c. Parallel to designing the training content
d. At the last stage of training
14.6 SUMMARY
This chapter defined the utility and purposes of training, the levels of training,
the need and importance of training and the benefits of training to the individual
and the organization. It expounds on the philosophy of training, learning curve and
plateaus, approaches to training programme, identification of training needs in an
organization at group and individual levels, dynamics of organization of training,
purposes or objectives of training etc.,
14.7 TERMINAL EXERCISE
1. Discuss the methods of training that are used for training the operative
employees.
2. Discuss the various types of training programmes prevalent in the industry.
3. What are the objectives of employee training? Explain the need for training
in modern industry.
4. What are the three levels at which training and development needs
assessment can be made?
5. Explain the essential steps of a good training programme.
6. What are the process of training needs and assessment?
7. Describe training inputs.
14.8 SUPPLEMENTARY MATERIALS
1. Richard T. DeGeorge, “Business Ethics”, New York: Macmillan Publishing
Company, 3, 1990 Edition.
2. Meredith J.R., “The Management of Operations,” New York: John Wiley &
sons, 4, 1992 Edition.
3. Sangeetha Jain, “Quality of Work Life (QWL)”, New Delhi: Deep and Deep
Publications, 1991 Edition.
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14.9 ASSIGNMENTS
1. Visit the training department, collect the training calendar, and choose a
training programme from the calendar. Also collect the syllabus, brochure,
and prepare the objectives wise time and facility required. Approach the
training manager, take his appointment, and meet him to discuss what you
have prepared. Request him to scrutinize and carefully observe his facial
expression. Thereafter, collect his views about the usefulness of the same.
Do you feel that you would succeed in getting this system implemented?
2. Visit an organization that has a training department. Find out how they
evaluate their training programme. If the training department is using Jack
Phillips ROI approach, record the data they are collecting. Further note to
what extent the organization is getting returns from training. Analyze all the
information, finalize your findings, and suggest the training department
suitably.
14.10 SUGGESTED READING /REFERENCE BOOKS/SET BOOKS
1. Aswathappa.K: Human Resource Management, Tata McGraw Hill Publishing
Co. Ltd., New Delhi
2. John H. Bernardian and Joyce E.A Russel: Human Resource Management –
An Experimental Approach, McGraw Hill, New York
3. Bhusan, Y.K. (1988):Training and development, concepts and practices,
New Delhi: Deep and Deep publication Pvt. Ltd..
4. Titus (2011):Training and Human Resources Development: An Experience in
Symbiosis. In Alternative approaches and strategies of Human Resources
Development
5. Randall, S.Schuler,(2010):Effective Personnel Management, West Publishing,
New York
6. Rao VSP: (2010) Human Resource Management, Excel Books, New Delhi
14.11 LEARNING ACTIVITIES
Work Related Learning (WRL) is defined as: "planned activity that uses the
context of work to develop knowledge, skills and understanding useful in work…”
(QCA) WRL is a comprehensive and programme offered to education
establishments. The aim is to ensure young people get the appropriate information,
advice and guidance and careers advice so they leave education with the skills they
need to achieve their career aspirations. The events are supported by a wide variety
of local and national employers. Work related learning activities have considerable
benefits for both students and employers who support these events. The activities
allow students to understand the relevance of their school subjects to working life
and inspires them to succeed at school to gain employability skills and achieve
their future goals. For employers, getting involved offers opportunities to promote
their organisation in the local community and provides training and development
opportunities for their staff. It offers employers the opportunity to input into the
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school curriculum and ensure that future employees have the skills employers are
looking for.
Case Study
The President of the Academy Employment Service has inaugurated a
Management of Objectives program in order that more accurate appraisals may be
made of professional personnel. Frank Bank, an employment interviewer, has for
the past year established relations with Small Business College, a privately run
school in the southern part of the state. It graduates about 25 people per month
and bank had agreed to place as many of those who wanted placement in training-
related jobs. Between 15 and 20 people per month signed up for this service.
When the President asked Bank to prepare objectives for his job, this seemed to be
one of the easy places to do it. In as much as Bank was now placing about 35
percent of the applications, the president asked if he thought he could raise this to
50 percent. Bank assured him that he could. In reviewing Bank’s
accomplishments at the end of the 6-month period, it was concluded by the
personnel unit that Bank was placing only 5 to 7 percent of the graduates in
training related jobs. Several lengthy and heated discussions took place regarding
just what was meant by training related, while the personnel unit contented that
the job content had to bear some relationship to the training acquired in school.
Moreover, if the placed student quite before 90 days of work, the personnel unit
would not classify this as a successful placement. Continuous documentation of
Bank’s’ to 7 percent performance against the 50 percent objective led to Bank’s
serious consideration of early retirement.
1. Is this objective a well stated one? Why or why not?
2. If you were the president, how would you resolve the dispute between and
the personnel unit?
14.12 KEYWORDS
Training, Methods of training, types of training, on the job training, off the job
training, training needs, training evaluation, training for executives.
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LESSON –15
METHODS OF TRAINING
15.1 INTRODUCTION
A large variety of methods of training are used in business. Even within one
organization different methods are used for training different people.
15.2 OBJECTIVES
After reading this lesson you should be able to understand
• On the job Training Methods
• Off the-job Training Methods Training and Development in India
• Evaluation of Training Programmes
• Training Institutes
• Government Policy
15.3 CONTENTS
15.3.1 Training Methods
15.3.2 On-the-Job Training Methods
15.3.3 Off-the-Job Training Methods
15.3.4 Evaluation of Training Programmes
15.3.5 Methods of Evaluation
15.3.6 Retraining
15.3.7 Training and Development in India
15.3.1 Training Methods
All the Training methods are divided into two broad classifications. They are
listed below :
A. On-the-job Training Methods B. Off-the-Job Training Methods
1. Coaching 1. Lectures and Conferences
6. Understudy
skills.
7. Role Reversal Games Brings out ideas that are not often expressed.
To adjust workforce.
To punish employees.
17.2 OBJECTIVES
After reading this lesson you should be able to understand
• Meaning of Transfer
• Objectives of transfer
• Transfer Policy of the companies
• Different types of Transfer
• Promotion and its Purpose
• Promotion Policy and Types of Promotion
• Demotion and its implications
17.3 CONTENTS
17.3.1 Reasons for Employee Transfers
17.3.2 Types of Transfers
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17.3.3 Promotion
17.3.4 Purpose and Advantages of Promotion
17.3.5 Promotion Policy
17.3.6 Types of Promotion
17.3.7 Demotion
17.3.1 Reasons for Employee Transfers
1. To avoid gaining capacity of influencing and egocentrism.
2. To avoid monotony in the work of an employee.
3. So as to avoid excess dependency on particular employee.
4. To create transparency among the employees and their work.
5. It limits taking advantage and sole control over the seat or section.
6. To avoid unnecessary influence on others for their own advantage.
7. To make conversant of different seats work.
8. To maintain healthy relationship in between all the staff members to retain
harmonious environment to avoid unnecessary disputes
Transfer Policy
Every organization should have a fair and impartial transfer policy which
should be known to each employee. The responsibility for effecting transfers is
generally entrusted to an executive with power to prescribe the conditions under
which requests for transferred are approved. Care should be taken to ensure that
frequent or large scale transfers are avoided by laying down adequate selection and
placement procedures for the purpose. A good transfer policy should:
• Specifically clarify the types of transfers and the conditions under which
these will be made.
• Locate the authority in some officer who may initiate and implement
transfers.
• Indicate whether transfers, i.e., whether it will be based on seniority or on
the skill and competency or any other factor.
• Decide the rate of pay to be given to the transferee.
• Intimate the fact of the transfer to the person concerned well in advance.
• Be in writing and duly communicated to all concerned.
• Not be made frequently and for sake of transfer only.
17.3.2 Types of Transfers
Employee transfers may be classified as below.
1. Production transfers: When the transfers are being made for filling the
position in such departments having lack of staff, from the departments
having surplus manpower it is called production transfer. It prevents the
layoffs form the organization. Also it is good to adjust existing staff rather than
to hire the new one.
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2. Replacement transfers: This takes place to replace a new employee who has
been in the organization for a long time and thereby giving some relief to an
old employee from the heavy pressure of work.
3. Versality transfers: It is also known as rotation. This is done by transferring
employee to different jobs closely related in same department or process line..
This is used as a training device. It helps employee to develop him and he is
equipped for the high responsibility jobs as he is having knowledge of the
whole process. It also helps to reduce boredom and monotony
4. Personnel or remedial transfers: Such a transfer is made to rectify mistakes
in selection and placement. As a follow up, the wrongly placed employee is
transferred to a more suitable job.
5. Shift transfers: This is pretty common where there is more than one shift and
when there is regularised rotation. In many multi-shifts jobs such as Call
centers employees are transferred from one shift to another due to their
personal reasons like health problem or evening college for higher studies or
any family problems.
17.3.3 Promotion
Promotion is vertical movement of an employee within the organisation. In
other words, promotion refers to the upward movement of an employee from one job
to another higher one, with increase in salary, status and responsibilities.
Promotion may be temporary or permanent, depending upon the needs of the
organisation.
According to Pigours and Myers, ‘Promotion is advancement of an employee to
a better job – better in terms of greater responsibility, more prestige or status,
greater skill and especially increased rate of pay or salary”.
Arun Monappa and Mirza S Saiyadain defined promotion as “the upward
reassignment of an individual in an organization’s hierarchy, accompanied by
increased responsibilities, enhanced status and usually with increased income
though not always so”
Promotion has an in-built motivational value as it elevates the authority,
power and status of an employee within an organisation. It is considered good
personnel policy to fill vacancies in a higher job through promotions from within
because such promotions provide an inducement and motivation to the employees
and also remove feelings of stagnation-and frustration.
17.3.4 Purpose and Advantages of Promotion
Promotion stimulates self-development and creates interest in the job.
According to Yoder, “promotion provides incentive to initiative, enterprise and
ambition; minimizes discontent and unrest; attracts capable individuals;
necessitates logical training for advancement and forms an effective reward for
loyalty and cooperation, long service etc.” The purposes and advantages of
promotions are to:
• Recognize employee’s performance and commitment and motivate him
towards better performance;
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• Develop competitive spirit among employees for acquiring knowledge and
skills for higher level jobs;
• Retain skilled and talented employees;
• Reduce discontent and unrest;
• To fill up job's vacant position that is created due to retirement, resignation
or demise of an employee. In this case next senior employee will be promoted
to the vacant job.
• Utilize more effectively the knowledge and skills of employees; and
• Attract suitable and competent employees.
17.3.5 Promotion Policy
We have seen policy is the guideline for action. Policy varies with organization.
So the promotion is very sensitive to employees, it is very essential. The promotion
policy should clearly stated, widely circulated, and fully explained to their
employees. The promotion policy which influences the number of factor of the
organization such as, morale, motivation, turnover of the personnel in the
organization. The personnel department of the organization must develop an
effective promotion policy. This should be in written, flexible subject to situations.
In order to make the promotion policy successful, it is necessary that the
employees’ assessment and confidential reporting system should be objective as far
as possible so that every employee has faith in promotion policy and hence induced
for better performance to get promotion. The promotion policy should consider
merit, potential and seniority of the employees. The merit factor requires a good
procedure for evaluating the performance of the employee. The performance of the
each employee should be appraised periodically and should form the part of
personal record.
The following characteristics make a promotion policy as sound and good policy:
1. It must provide equal opportunities for promotion across the jobs,
departments, and regions.
2. It must be applied uniformly to all employees irrespective of their
background.
3. It must be fair and impartial.
4. The basis of promotion must be clearly specified and made known to the
employees.
5. It must be correlated with career planning. Both quick (bunching) and
delayed promotions must be avoided as these ultimately adversely affect the
organisational effectiveness.
6. Appropriate authority must be entrusted with the task of making final
decision.
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7. Promotion must be made on trial basis. The progress of the employee must
be monitored. In case, the promoted employee does not make the required
progress, provision must be there in the promotion policy to revert him/her
to the former post.
8. The policy must be good blending of promotions made from both inside and
outside the organisation.
17.3.6 Types of Promotion
1. Horizontal promotion
When an employee is shifted in the same category, it is called ‘horizontal
promotion’. A junior clerk promoted to senior clerk is such an example. It is
important to note that such promotion may take place when an employee shifts
within the same department, from one department to other or from one plant to
another plant.
2. Vertical Promotion
This is the kind of promotion when an employee is promoted from a lower
category to lower category involving increase in salary, status, authority and
responsibility. Generally, promotion means ‘vertical promotion’.
3. Dry Promotion
When promotion is made without increase in salary, it is called ‘dry
promotion’. For example, a lower level manager is promoted to senior level manager
without increase in salary or pay. Such promotion is made either there is
resource/fund crunch in the organisation or some employees hanker more for
status or authority than money.
Promotion can be made on various bases. Following are the major ones
• Seniority i.e., length of service
• Merit, i .e., performance
• Educational and technical qualification
• Potential for better performance
• Career and succession plan
• Vacancies based on organizational chart
• Motivational strategies like job enlargement.
• Training
As a matter of fact, no single basis of promotion is acceptable and applicable to
all organisations. Every basis has its strengths and weaknesses. For example, while
promotion on the basis of seniority gives satisfaction to the senior employees, it
causes frustration to the talented ones. Similarly, promotion based on merit
motivates competent employees to work hard while trade unions oppose it on the
justification of its subjectivity. In India, promotion in the government departments
is made on the basis of seniority of the employees. In case of private organisations,
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merit is generally used as a basis for promoting employees. Here, the promotion
policy is to promote the best one available.
17.3.7 Demotion
Demotion is the opposite of promotion. It is a downward movement of
employees in the organizational hierarchy with lower status and lower salary. It is
the down-warding process and is insulating to an employee. Demotion is the
punishment for incompetence or mistake of serious nature on the part of the
employee. It is serious types of the penalty or punishment and should be given
rarely and only under exceptional circumstances and tactfully. Demotions may be
necessary under the following conditions:
• When the organization reduces activities, officer occupying certain posts are
demoted.
• Errors in the promotions already made are corrected through demotions.
• It may be necessary to use demotions as a tool of disciplinary action against
erring employees.
The tool of demotion should be used only when it is absolutely necessary.
However, there should not be any injustice to any of employees in this regard.
Demotions should be made for genuine reasons. Promotions are easily as they
affect their status, career and position. Demotion usually treated as an insult and
naturally resented by the employees in one way or the other. It is, therefore,
desirable to avoid demotions as far as possible. Demotions should be an exception
but not the normal rule of the organization.
Demotion is very harmful for the employee’s morale. It is an extremely painful
action, impairing the relationships between people permanently. While effecting the
demotions, managers should extremely careful not to place himself on the wrong
side of the fence. It is therefore, very necessary to formulate a demotion policy so
that there may be no grievances on the part of the unions and the employee
concerned. Demotions should have serious impact on need fulfilment. Needs for
esteem and belongingness are get frustrate leading to a defensive behaviour on the
part of the person demoted. There may be complaints, emotional turmoil,
inefficiency or resignations. Hence, demotions are very rarely resorted to by
managers. Manager prefers to discharge the employees rather than face the
problems arising from the demotions.
17.4 REVISION POINTS
1. Production transfers
When the transfers are being made for filling the position in such
departments having lack of staff, from the departments having surplus
manpower it is called production transfer.
2. Promotion
Promotion refers to the upward movement of an employee from one job to
another higher one, with increase in salary, status and responsibilities.
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3. Demotion
Demotion is the opposite of promotion. It is a downward movement of
employees in the organizational hierarchy with lower status and lower
salary.
17.5 INTEXT QUESTIONS
1. What do you understand by transfer? Describe various types of transfers.
2. What are the causes and objectives of transfers?
3. Describe the essentials of good transfer policy.
4. What is promotion? Explain the basic characteristics of a sound promotion
policy.
5. What are the types of promotion?
6. What is demotion and why is it needed? Explain the requirements of a
proper demotion policy.
17.6 SUMMARY
Job changes refer to internal and external mobility of employees. The changes
are made to maximizing efficiency and effectiveness to ensure among the
employees. Transfers of employees are made to satisfy needs of both employer and
employees. Production, replacement, versatility, remedial and shift are the types of
transfer. Promotion of employees helps to improve motivation, morale, efficiency
etc., of employees. Seniority and merit are the two main basis for promotion. Every
company should have proper policies relating to transfer and promotion. Demotion
is the reverse of promotion.
17.7 TERMINAL EXERCISE
1. Why is it necessary to change an employee’s job? Explain the purpose of job
changes?
2. What do you understand by transfer? Describe various types of transfers
3. Explain the causes and objectives of transfers
4. Define promotion. How does it differ from upgradation and transfer?
5. What is promotion? Explain the basic characteristics of a sound promotion
policy
6. Briefly explain the ways by which employees separate themselves from the
enterprise they are serving.
17.8 SUPPLEMENTARY MATERIALS
1. Stephen P. Robbins and Timothy A. Judge, “Organisational Behaviour”,
New Delhi: Prentice Hall of India, 12, 2007 Edition.
2. N.G. Nair and Lalitha Nair, “Personnel Management and Industrial
Relations”, New Delhi: S. Chand and Company Ltd., 2001 Edition.
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17.9 ASSIGNMENTS
1. New employees are introduced to the organisation’s standards, goals, values,
and culture through
a. Promotion
b. Global placement
c. Induction
d. Internal mobility
2. The practice of assigning a candidate to the right job is called
a. Interview
b. Promotion
c. Placement
d. Retrenchment
3. What is meant by the term retrenchment?
a. A process of giving employees greater autonomy and decision making
power
b. A system that encourages workers to move more freely within the
organization
c. Permanent lay-off of surplus staff due to economic slowdown
d. A formal system of leadership that relies greatly on control
17.10 SUGGESTED READING /REFERENCE BOOKS/SET BOOKS
1. Gilmer, B.V.H., 1966, Industrial Psychology, McGraw Hill Book Company,
New York.
2. Glicken, M.D., 1977, A regional study of the job satisfaction of social
workers, Dissertation Abstracts International, 38,3,1658-A.
3. Goble, J.W., 1977, Relationships between job satisfaction,
demographic factors, absenteeism and tenure of workers in a Delmarva
broiler processing plant, Dissertation abstracts International, 38, 4, 1820-A.
4. Hayeslip, D.W., 1977, Pupil control ideology — pupil control behaviour
congruence and the job satisfaction of public school teachers, Dissertation
Abstracts International, 37, 11, 6871- A.
5. Lahiri, D.K., and Srivastava, S., 1967, Determinants of satisfaction in
middle-management personnel, Journal of Applied Psychology, 51, 3, 254-
265.
6. Markham. L.G. and Van Zyl E.S. (2008), “The Effect of Biographical
Variables on the Job Satisfaction of A Group Human Resource Management
Employees working in a Municipality”, Journal for New Generation Sciences:
Vol.10, No.1, pp. 80-96.
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17.11 LEARNING ACTIVITIES
1. Take into consideration of an organization, its organizational structure and
try to understand the different levels of management, position of the
employees. Analyze how their career growth, promotion and transfers are
fixed up based on their experience, educational qualification and with other
criteria. Study the procedures of promotion and transfer by seeing the
companies human resource polices.
17.12 KEYWORDS
Promotion, Transfer, career advancement, career development, de-promotion,
motivation, monetary and non-monetary motivations.
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LESSON –18
DISCIPLINE
18.1 INTRODUCTION
Discipline is the regulation and modulation of human activities to produce a
controlled performance. The real purpose of discipline is quite simple. It is to
encourage employees to confirm to established standards of job performance and to
behave sensibly and safely at work. Discipline is essential to all organized group
action. Discipline is employee learning that promotes self-control, dedication, and
orderly conduct. In relation to employees in the U.S., discipline is generally used in
a restricted sense to mean punishment. Consequently, the written procedures used
to punish employees for job deficiencies are called disciplinary procedures.
Punishment is the process of either administering an unpleasant stimulus, such as
a warning letter or a suspension, or withholding a reward, such as not granting a
scheduled pay increase because of an employee's job deficiencies. Punishment is
only one form of discipline; other forms are positive reinforcement, including
commendations and praise, and human resources development.
18.2 OBJECTIVES
After reading this lesson you should be able to understand
• Discipline
• Positive and Negative Aspects of Discipline
• Causes of Indiscipline
• Disciplinary Procedures
• Maintaining Discipline
18.3 CONTENTS
18.3.1 Definition of Discipline
18.3.2 Nature of Indiscipline
18.3.3 Causes of Indiscipline
18.3.4 Disciplinary Procedure
18.3.1 Definition of Discipline
According to Richard D. Calhoon, “Discipline is the force that prompts
individuals or groups to observe rules, regulations, standards and procedures
deemed necessary for an organization.” Therefore discipline means securing
consistent behaviour in accordance with the accepted norms of behaviour. I am
sure you will agree that discipline is essential in every aspect of life. It is equally
essential in industrial undertakings. Simply stated, discipline means orderliness. It
implies the absence of chaos, irregularity and confusion in the behaviour of
workers.
Discipline is a procedure that corrects or punishes a subordinate because a
rule of procedure has been violated. Dessler, 2001. Discipline should be viewed as
a condition within an organisation whereby Employees know what is expected of
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them in terms of the organisation’s rules, Standards and policies and what the
consequences are of infractions. Rue &Byars, 1996
From the above definitions, you can find the following elements:
• The objective is orderly behaviour.
• Orderly behaviour is a group desire.
• Orderly behaviour assists the attainment of organisational goals
• When members behave appropriately as per rules, there is no need for
disciplinary action. This is self-discipline.
• When some members violate the rules and regulations, punitive actions are
needed to correct them.
• Punishment serves two purposes: first, to directly punish an individual for
an offence and secondly, to set an example for others not to violate the rules
and regulations.
Those employees who observe the rules and standards are rewarded by praise,
by security and often by advancement. Those who cannot stay in line or measure
up to performance standards are penalized in such a way that they can clearly
learn what acceptable performance and behaviour are. Most employees recognize
this system as a legitimate way to preserve order and safety and to keep everyone
working towards the same organisational goals and standards. For most employees,
self- discipline is the best discipline. As often as not, the need to impose penalties is
a fault of the management as well as of the individual worker. For that reason
alone, a supervisor should resort to disciplinary action only after all else fails.
Discipline should never be used as a show of authority or power on the supervisor’s
part.
18.3.2 Nature of Indiscipline
Maintenance of discipline is a prerequisite to the attainment of maximum
productivity, not only of the firm but also for the entire nation. It is only because of
this that. After all everything is a matter of realization! No amount of pressure can
succeed in the long run unless one is committed to improve or learn. True
discipline is educational because it changes the very attitude of the workers
towards their work and workplace. It must, therefore, be understood that discipline
must be developed from within. Another important point that you should note here
is that discipline has to be reformative and not punitive. We should aim at
development rather than punishing. I am sure that you will adhere to something
that is explained to you in a calm and matured way rather than that is ordered!
According to Megginson, discipline involves the following three things.
• Self-discipline implies that a person brings the discipline in himself with a
determination to achieve the goals that he has set for himself in life.
• Orderly behaviour refers to discipline as a condition that must exist for an
orderly behaviour in the organization.
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• Punishment is used to prevent indiscipline. When a worker goes astray in
his conduct, he has to be punished for the same and the recurrences of it
must be prevented.
Discipline can either be positive or negative
1. Positive Discipline
Positive discipline involves creation of an atmosphere in the organisation
whereby employees willingly conform to the established rules and regulations.
Positive discipline can be achieved through rewards and effective leadership.
According to Spiegel, “Positive discipline does not replace reason but applies
reason to the achievement of a common objective. Positive Discipline does not
restrict the individual freedom but enables him to have a greater degree of self-
expression in striving to achieve the group objective, which he identifies as his
own.” It means that positive Discipline is not that ideal that it can’t be achieved. It
also does not imply that an individual’s freedom is restricted. Rather it provides
better chances to an individual for expressing himself. The individual in this
process, is able to bridge the gap between his and the group goals. It is also to be
noted that positive discipline promotes cooperating and coordination with a
minimum of formal organization. It reduces the need for strict supervision required
to maintain standards and observe rules and regulations. Everyone is answerable
to oneself and therefore one is not answerable to anyone else.
2. Negative Discipline
Under negative discipline, penalties are used to force the workers to obey rules
and regulations. In other words, workers try to adhere to rules and regulations out
of fear of warnings, penalties and other forms of punishment. This approach to
discipline is called negative or punitive approach.
This is an unfavourable state that subjects the employees to frustration, and
consequently results in low morale. Let me ask you a question, how will you react if
you are punished for a wrong act of yours? Will you welcome it? I am sure it would
be much better that an environment is created where one does not commit any
wrongful act. If at all there is some indiscipline, tit has to be handled in a calm and
matured way. There is another drawback related to negative discipline. An
employee goes astray in his behaviour whenever there is a slightest possibility of
escaping the punishment or when he believes that his action will go unnoticed.
Progressive and development oriented managers adopt a positive approach to
discipline rather than negative approach. In the positive approach, attempts are
made to educate the workers the values of discipline. The workers should be taught
self-discipline. Disciplinary action should be taken only in exceptional
circumstances where no other alternative is left. Disciplinary action should always
incorporate consideration of just cause and due process.
Some of the symptoms of general indiscipline can be
• Absenteeism
• Abusing customers
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• Abusive language toward supervisor
• Assault and fighting among employees
• Causing unsafe working conditions
• Damage to or loss of machinery or materials Dishonesty
• Disloyalty to employer (includes competing with employer, conflict of
interest)
• Falsifying company records (including time records, production records)
• Incompetence (including low productivity)
• Leaving place of work (including quitting early)
• Misconduct during a strike
• Negligence
• Participation in a prohibited strike
• Refusal to accept a job assignment
• Refusal to work overtime
• Sleeping on the job
• Slowdown
• Theft Threat to or assault of management representative
18.3.3 Causes of Indiscipline
Various socio-economic and cultural factors play a role in creating indiscipline
in an organization. We wonder if you realise the fact that often indiscipline may
arise because of poor management on your part. Insensitive and thoughtless words
and deeds from a manager are potent reasons for subordinates to resort to acts of
indiscipline. Defective communication by the superiors and ineffective leadership.
The reasons could range anything from poor wages to, poor management and the
communication gaps between the union and management.
The common causes of indiscipline are as follows,
1. Unfair Management Practices: Management sometimes indulges in unfair
practices like:
Wage discrimination
• Non-compliance with promotional policies and transfer policies
• Discrimination in allotment of work
• Defective handling of grievances
• Payment of low wages
• Delay in payment of wages
• Creating low quality work life etc. These unfair management practices
gradually result in indiscipline.
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2. Absence of Effective Leadership: Absence of effective leadership results in
poor management in the areas of direction, guidance, instructions etc. This in turn,
results in indiscipline.
3. Communication Barriers: Communication barriers and absence of
humane approach on the part of superiors result in frustration and indiscipline
among the workers. The management should clearly formulate the policies
regarding discipline. These policies should be communicated and the policies
should be consistently followed in the organizations. The management should also
be empathetic towards the employees.
4. Varying Disciplinary Measures: Consistent disciplinary actions must be
there in the organization to provide equal justice to all concerned. At different times
and for everyone, the same standard of disciplinary measures should be taken
otherwise it may give rise to growing indiscipline in the industry in future.
5. Defective Supervision: Supervisor is the immediate boss of the workers
and many disciplinary problems have their in faulty supervision. The attitude and
behaviour of the supervisor may create many problems.
6. Inadequate attention to personnel Problems: Delay in solving personnel
problems develops frustration among individual workers. The management should
be proactive so that there is no discontent among the workers. It should adopt a
parental attitude towards its employees.
7. Victimization: Victimization of subordinate also results in indiscipline. The
management should not exploit the workers. It is also in the long-term interest of
the management to take care of its internal customers.
8. Absence of Code of Conduct: This creates confusion and also provides
chance for discrimination while taking disciplinary action. We will be discussing
Code of Discipline in details etc. A code of conduct is a set of rules outlining the
responsibilities of or proper practices for an individual, party or organization.
Related concepts include ethical codes and honour codes.
9. Divide and Rule Policy: Many mangers in the business obtain secret
information about other employees through their trusted assistants. The spying on
employees is only productive of a vicious atmosphere and of undesirable in the
organization. Henry Fayol has rightly pointed out that dividing enemy forces to
weaken them is clever, but dividing one's own team is grave sin against the
business. No amount of management skill is necessary for dividing personnel, but
integrating personnel into a team is the challenging task of sound management.
10. Deferring settlement of Employee Grievances: The employee grievances
cannot be put off by deferring or neglecting their solutions. The grievances should
properly be inquired into and settled by the managers in a reasonable period.
Neglect of grievances often results in reduced performance, low morale and
indiscipline among the employees.
11. Mis-judgment in Promotion and Placements: Mis-judgment in personnel
matters like promotion and placements contribute to the growth of indiscipline in
an enterprise.
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Purpose and Objectives of disciplinary action
The purpose of discipline is to encourage employees to behave sensibly at
work, where being sensible is defined as adhering to rule and regulations. In an
organisation, rules and regulations serve about the same purpose that laws do in
society; discipline is called for when one of these rules or regulations is violated.
Following are some of the purposes and objectives of disciplinary action:
• To enforce rules and regulations.
• To punish the offender.
• To serve as an example to others to strictly follow rules.
• To ensure the smooth running of the organisation.
• To increase working efficiency.
• To maintain industrial peace.
• To improve working relations and tolerance.
• To develop a working culture which improves performance.
18.3.4 Disciplinary Procedure
Disciplinary procedures are a critical tool for management to succeed. Many
people associate disciplinary procedures with negative feedback. If implemented
properly, these procedures will positively affect the relationship between a manager
and their employees. Employees embrace accountability and it actually improves
employee job satisfaction. Correcting employee performance issues is a procedure.
Effective interpersonal communication, written communication, and your
management skills list must be utilized to assist your employees. Poorly
implemented procedures may negatively impact workplace performance.
Before starting the process of discipline, it is essential to hold a preliminary
inquiry to know if a prima facie case of indiscipline and misconduct exist. After
this, the following steps should be followed:
1. Issue of charge sheet: Once the prima facie case of misconduct is
established, the management should proceed to issue a charge sheet to the
employee. Charge sheet is merely a notice of the charge and provides the
employee an opportunity to explain his conduct. Therefore, charge sheet is
generally known as a show cause notice. In the charge sheet, each charge
should be clearly specified. There should be a separate charge for each
allegation and charge should not relate to any matter, which has already
been decided upon. I would suggest each one of you to talk to find out how
is a charge sheet prepared. We will discuss that in the next class.
2. Consideration of Explanation. On getting the answer for the charge sheet
served, the explanation furnished should be considered and if it is
satisfactory, no disciplinary action needs to be taken. On the contrary when
the management is not satisfied with the employee’s explanation, it can
proceed with full-fledged enquiry. (However, if the worker admits the charge,
the employer can warn him or award him punishment without further
enquiry.
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3. Suspension pending Enquiry. In case the charge is grave that is serious, a
suspension order may be served on the employee along with the charge
sheet. According to the Industrial Employment (Standing Order) Act, 1946,
the suspended worker is to be paid a subsistence allowance equal to one-
half of his wages for the first ninety days of suspension and three-fourths of
wages for the remaining period of suspension if the delay in the completion
of disciplinary proceedings is not due to the worker’s conduct. What is grave
will depend on the discretion of the management. It has to be decided in
accordance with the Code of Discipline.
4. Holding of Enquiry. An enquiry officer should be appointed to hold the
enquiry and a notice to this effect should be given to the concerned worker.
Principle of natural justice must be followed. The worker should not be
denied the chance of explaining himself. The enquiry officer should give
sufficient notice to the worker so that he may prepare to represent his case
and make submission in his defence. The enquiry officer should proceed in a
proper manner and examine witnesses. Fair opportunity should be given to
the worker to cross-examine the management witnesses.
5. Principle of Natural Justice: The principles of natural justice can be
summarized as follows:
Tell the person what he has done
• Hear Him
• Give Him a Chance to defend himself
On the conclusion of the enquiry, the enquiry officer should record his findings
and the reasons thereof. He should refrain from recommending punishment and
leave it to the decision of the appropriate authority. After all he is just an enquiry
officer!!
1. Order of Punishment. Disciplinary action can be taken when the
misconduct of the employee is proved. While deciding the nature of disciplinary
action, the employee’s previous record, precedents, effects of the action on other
employees, etc., have to be considered. When the employee feels that the enquiry
conducted was not proper and the action taken unjustified, he must be given a
chance to make appeal.
18.4 REVISION POINTS
1. Discipline: The force that prompts individuals or groups to observe rules,
regulations, standards and procedures deemed necessary for an
organization.
2. Self-discipline: Implies that a person brings the discipline in himself with a
determination to achieve the goals that he has set for himself in life.
3. Orderly behaviour: Refers to discipline as a condition that must exist for an
orderly behaviour in the organization.
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18.5 INTEXT QUESTIONS
1. What are the causes of indiscipline?
2. Discipline is of two types – positive and negative.
3. What are the purpose and objectives of disciplinary action?
18.6 SUMMARY
Discipline implies adherence to the rules and regulation of the organization.
There are two types of discipline are positive and negative discipline. Indiscipline is
caused by faulty leadership, biased management practices, political and trade
union factors etc., Disciplinary action should be based on principles of natural
justice. Preliminary investigation, issue of charge sheet, suspension, notice of
enquiry, findings, punishment, and communication are the steps in disciplinary
process.
18.7 TERMINAL EXERCISE
1. Explain the procedure for taking disciplinary action.
2. Disciplinary action should be based on principles of natural justice.
18.8 SUPPLEMENTARY MATERIALS
1. Meredith J.R., “The Management of operations,” New York: John Wiley &
sons, 4, 1992 Edition.
2. Richard T. DeGeorge, “Business Ethics”, New York: Macmillan Publishing
Company, 3, 1990 Edition.
3. Wayne F. Cascio and Herman Aguinis, “Applied Psychology In Human
Resource Management, Sixth Edition, New Delhi: PHI Learning Limited,
2009, Edition.
18.9 ASSIGNMENTS
1. Read the policies and procedures of disciplinary action taken by the
Corporate against the employees on various grounds and highlights the
mechanism to sort out that kind of incidents as the assignments
18.10 SUGGESTED READING /REFERENCE BOOKS/SET BOOKS
1. Atwater, L., Carey, J., & Waldman. D, (2001). Gender and discipline in the
workplace: Wait until your father gets home. Journal of Management, 27,
537-561.
2. Atwater, L., Waldman, D., Carey, J., & Cartier, P. (2001). Subordinate and
observer reactions to discipline: Are managers experiencing wishful
thinking? Journal of Organizational Behavior, 22, 249-270.
3. Baird, J. E., & Bradley, P. H. (1979). Styles of management and
communication: A comparative study of men and women. Communication
Monographs, 46, 101-111.
4. Butterfield, K., Trevino, L., & Ball, G. (1996). Punishment from the
manager’s perspective: A grounded investigation and inductive model.
Academy of Management Journal, 39, 1479-1512.
173
5. Carli, L. (1995). Nonverbal behavior, gender, and influence. Journal of
Personality and Social Psychology, 68, 1030-1041.
6. Dobbins, G., Cardy, R., & Truxillo, D. (1988). The effects of purpose of
appraisal and individual differences in stereotypes of women on sex
differences in performance ratings: A laboratory and field study. Journal of
Applied Psychology, 73, 551-558.
7. Falbo, T., & Peplau, L. A. (1980). Power strategies in intimate relationships.
Journal of Personality and Social Psychology, 38, 618-628.
8. Feingold, A. (1994). Gender differences in personality: A meta-analysis.
Psychological Bulletin, 116, 429-456.
9. Folger, R., & Konovosky, M. (1989). Effects of procedural and distributive
justice on reactions to pay raise decisions. Academy of Management
Journal, 32, 115-130.
10. Foschi, M. (2000). Double standards for competence: Theory and research.
Annual Review of Sociology, 26, 21-42.
11. Harlan, A., & Weiss, C. (1982). Sex differences in factors affecting
managerial career advancement. In P. A. Wallace (Ed.), Women in the work
place (pp.59-96). Boston: Auburn House.
18.11 LEARNING ACTIVITIES
1. Visit to a big corporate located nearer to your place and interact with
managers or committee setup to sort out the discipline related matters and
cross verify with employees its positive and negative impacts on
organization.
18.12 KEYWORDS
Discipline, indiscipline, Maintenance of Discipline, Disciplinary action,
Discipline Procedure and Policy
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LESSON – 19
COMPENSATION
19.1 INTRODUCTION
Compensation is a systematic approach to providing monetary value to
employees in exchange for work performed. Compensation may achieve several
purposes assisting in recruitment, job performance, and job satisfaction.
Employees, in exchange of their work, generally expect some appreciation. Money is
considered as the most important motivating factor for employees, though non-
financial incentives work efficiently. The goals of compensation management are to
design the lowest-cost pay structure that will attract, motivate and retain
competent employees.
"The most important thing is to note that compensation plays a major role in
attracting talent from the market and compensation system of the organization is
Key factor for creating employer brand, which is most important factor for
attracting talent people. Having talent people for the organization is a major asset
for the organization development"
19.2 OBJECTIVES
After reading this lesson you should be able to understand
• Introduction to Compensation:
• Objectives of Compensation Functions
• Factors Influencing Wage and Salary Administration
19.3 CONTENTS
19.3.1 Compensation
19.3.2 Objectives of Compensation Functions
19.3.3 Advantages of Compensation
19.3.4 Wage and Salary Administration
19.3.5 External factors influencing Wage and Salary Administration
19.3.6 Internal factors influencing Wage and Salary Administration
19.3.1 Compensation
Compensation is a tool used by management for a variety of purposes to
further the existence of the company. Compensation may be adjusted according to
the business needs, goals, and available resources.
Compensation may be used to:
• Recruit and retain qualified employees.
• Increase or maintain morale/satisfaction.
• Reward and encourage peak performance.
• Achieve internal and external equity.
• Reduce turnover and encourage company loyalty.
• Modify (through negotiations) practices of unions.
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Compensation packages can be considered total rewards systems, containing
non- monetary, direct, and indirect elements.
1. Non-Monetary Compensation: any benefit an employee receives from an
employer or job that does not involve tangible value.
2. Direct Compensation: an employee’s base wage which can be an annual
salary or hourly wage and any performance-based pay that an employee
receives.
3. Indirect Compensation: far more varied, including everything from legally
required public protection programs such as Social Security to health
insurance, retirement programs, paid leave, child care or moving expenses.
19.3.2 Objectives of Compensation Functions
The objective of wage and salary administration is numerous and sometimes
conflict with each other. The important among them are:
1. To acquire qualified and competent personnel: Candidates decide upon their
career in a particular organization mostly on the basis of the amount of
remuneration the organization offers. Qualified and competent people join
the best-paid organizations. As such, the organizations should aim at
payment of salaries at that level, where they can attract competent and
qualified people.
2. To retain the present employees: If the salary level does not compare
favorably with that of other similar organisation, employees quit the present
one and join other organizations. The organisation must keep the wage
levels at the competitive level, in order to prevent such quit.
3. To secure internal and external equity: Internal equity does mean payment
of similar wages for similar jobs within the organisation. External equity
implies that payment of similar wages to similar jobs in comparable
organisations.
4. To ensure desired behaviour: Good rewards reinforce desired behaviour like
performance, loyalty, accepting new responsibilities and changes, etc.
5. To keep labour and administrative costs in line with the ability of the
organisation to pay.
6. To project in public as progressive employer and to comply with the wage
legislations.
7. To pay according to the content and difficulty of the job and in tune with the
effort and merit of the employee
8. To facilitate pay roll administration of budgeting and wage and salary
control.
9. To simplify collective bargaining procedures and negotiations.
10. To promote organization feasibility
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Systems to Achieve the Objectives
The above mentioned objectives are achieved by the use of the following
systems.
1. Job evaluation: All jobs will be analyzed and graded to establish the pattern
of internal relationships. It is the process of determining relative worth of
jobs. It includes selecting suitable job evaluation techniques, classifying jobs
into various categories and determining relative value of jobs in various
categories.
2. Wage and salary ranges: Overall salary range for all the jobs in an
organisation is arranged. Each job grade will be assigned a salary range. The
individual salary ranges will be fitted into an overall range.
3. Wage and salary adjustment. Overall salary grades of the organisation may
be adjusted based on the data information collected about the salary levels
of similar organisations. Individual salary level may also be adjusted based
on the performance of the individual employees.
Principles
There are several principles of wage and salary plans, policies and practices.
The important among them are:
1. Wage, salary plan and policies should be sufficiently flexible.
2. Job evaluation must be done scientifically.
3. Wage and salary administration plan must always be consistent with overall
organizational plans and programmes.
4. Wage and salary administration plans and programmes should be in
conformity with the social and economic objectives of the country like
attainment of equality in income distribution and controlling inflationary
trends.
5. Wage and salary administration plans and programmes should be
responsive to the changing local and national conditions.
19.3.3 Advantages of Compensation
Compensation and benefits plan helps to attract, motivate and retain talent in
the organization. A well designed compensation and benefits plan will benefit the
organization in the following ways.
1. Job satisfaction: Your employees would be happy with their jobs and would
love to work for you if they get fair rewards in exchange of their services.
2. Motivation: We all have different kinds of needs. Some of us want money so
they work for the company which gives them higher pay. Some value
achievement more than money, they would associate themselves with firms
which offer greater chances of promotion, learning and development. A
compensation plan that hits workers’ needs is more likely to motivate them to
act in the desired way.
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3. Low Absenteeism: Why would anyone want to skip the day and watch not-so-
favourite TV program at home, if they enjoy the office environment and are
happy with their salaries and get what they need and want?
4. Low Turnover: Would your employees want to work for any other boutique if
you offer them fair rewards. Rewards which they thought they deserved?
19.3.4 Wage and Salary Administration
Remuneration provides more than a means of satisfying the physical
needs. It provides recognition, a sense of accomplishment and determines social
status. Hence formulation and administration of wage and salary to attract and
retain right personnel in right position is the prime responsibility of the
management in any organisation. Factors influencing wage and salary
administration.
19.3.5 External factors influencing Wage and Salary Administration
Demand and supply: The labor market conditions or demand and supply
forces operate at the national and local levels and determine organizational wage
structure. When the demand of a particular type of labor is more and supply is less,
then the wages will be more. On the other hand, if supply of labor is more demand
on the other hand, is less then persons will be available at lower wage rates also. In
the words of Mescon, ‘the supply and demand compensation criterion is very closely
related to the prevailing pay, comparable wage and ongoing wage concepts since, in
essence all of these remuneration standards are determined by immediate market
forces and factors.
• Cost of living: The wage rates are directly influenced by cost of living of a
place. The workers will accept a wage which may ensure them a minimum
standard of living. Wages will also be adjusted according to price index
number. The increase in price index will erode the purchasing power of
workers and they will demand higher wages. When the prices are stable then
frequent wage increases may not be undertaken.
• Trade unions bargaining power: The wage rates are also influenced by the
bargaining power of trade unions. Stronger the trade union higher well be
the wage rates. The strength of a trade union is judged by its membership,
financial position and type of leadership. Union’s last weapon is strike which
may also be used for getting wage increases. If the workers are disorganized
and disunited then employers will be successful in offering low wages.
• Government legislation: To improve the working conditions of workers,
government may pass a legislation for fixing minimum wages of workers.
This may ensure them a minimum level of living. In under developed
countries bargaining power of labour is weak and employers try to exploit
workers by paying them low wages. In India, Minimum Wages Act, 1948 was
passed to empower government to fix minimum wages of workers.
• Psychological and social factors: Psychological the level of compensation is
perceived as a measure of success in life. Management should take into
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consideration the psychological needs of the employees while fixing the wage
rates so that the employees take pride in their work. Sociologically and
ethically, the employees want that the wage system should be equitable, just
and fair. These factors should also be taken into consideration while
devising a wage programme.
• Economy: Economy also has its impact on wage and salary fixation. While it
may be possible for some organizations to thrive in a recession, there is no
doubt that economy affects remuneration decisions. A depressed economy
will probably increase the labour supply. This, in turn, should lower the
going wage rate.
• Technological development: With the rapid growth of industries, there is a
shortage of skilled resources. The technological developments have been
affecting skills levels at faster rates. Thus, the wage rates of skilled
employees constantly change and an organization has to keep its level up-to
the mark to suit the market needs.
• Prevailing market rates: No enterprise can ignore prevailing or comparative
wage rates. The wage rates paid in the industry or other concerns at the
same place will form a base for fixing wage rates. If a concern pays low rates
then workers leave their jobs whenever they get a job somewhere else. It will
not be possible to retain good workers for long.
19.3.6 Internal factors influencing Wage and Salary Administration
• Ability to pay: The ability to pay of an enterprise will influence wage rates
to be paid. If the concerns is running into losses then it may not be able to
pay higher wage rate. A profitable concern may pay more to attract good
workers. During the period of prosperity, workers are paid higher wages
because management wants to share the profits with labour.
• Job requirements: Basic wages depend largely on the difficulty level, and
physical and mental effort required in a particular job. The relative worth of
a job can be estimated through job evaluation. Simple, routine tasks that
can be done by many people with minimum skills receive relatively low pay.
On the other hand, complex, challenging tasks that can be done by few
people with high skill levels generally receive high pay.
• Management strategy: The overall strategy which a company pursues
should determine the remuneration to its employees. Where the strategy of
the organization is to achieve rapid growth, remuneration should be higher
than what competitors pay. Where the strategy is to maintain and protect
current earnings, because of the declining fortunes of the company,
remuneration level needs to be average or even below average.
• Employee: Several employee related factors interact to determine his
remuneration, such as,
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1. Performance or productivity is always rewarded with a pay increase.
Rewarding performance motivates the employees to do better in future.
2. Seniority. Unions view seniority as the most objective criteria for pay
increases whereas management prefer performance to effect pay increases.
3. Experience. Makes an employee gain valuable insights and is generally
rewarded.
4. Potential. Organization do pay some employees based on their potential.
Young managers are paid more because of their potential to perform even if
they are short of experience.
19.4 REVISION POINTS
1. Compensation: Compensation is a tool used by management for a variety of
purposes to further the existence of the company. Compensation may be
adjusted according to the business needs, goals, and available resources.
2. Non-Monetary Compensation: any benefit an employee receives from an
employer or job that does not involve tangible value.
3. Direct Compensation: an employee’s base wage which can be an annual
salary or hourly wage and any performance-based pay that an employee
receives.
4. Indirect Compensation: far more varied, including everything from legally
required public protection programs such as Social Security to health
insurance, retirement programs, paid leave, child care or moving expenses.
19.5 INTEXT QUESTIONS
1. What are the factors affecting of wage and salary administration?
2. Define compensation. Differentiate between compensation, salary and wages
3. Discuss the role of direct and indirect compensation programmes in an
organization
4. Discuss some of the aspects to be considered while designing international
compensation.
19.6 SUMMARY
Wages incentives refer to performance linked compensation. Wage incentives
plans help to improve industrial relation, employee morale and productivity, work
methods and team work. Wage incentives plans may cause damage to employee
health, quality of work, industrial safety, interpersonal relations, etc., proper
climate, workers involvement, scientific standards, guaranteed minimum wage,
simplicity, equity, economy, flexibility, promptness, and provision for appeal and
follow-up are the essentials of a sound wage incentive plan.
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19.7 TERMINAL EXERCISE
1. The following are all examples of direct compensation except
• Pension
• Salary
• Bonus
• Income
2. Cost of human resources refers to
• Company profits
• Employee shares
• Salary packages
• Earned revenues
3. The relative position of an organization’s pay incentives compared to other
companies in the same industry is known as
• Pay structure
• Pay appraisal
• Pay level
• Pay feedback
4. An employee’s compensation usually comprises
• High monetary rewards
• Quality rewards requested by employees
• Benefits such as medical and transport allowances
• Financial and non-financial rewards
5. Which of the following is a part of non-financial compensation?
• Monthly commission
• Employees autonomy
• Stock option
• Medical allowance
19.8 SUPPLEMENTARY MATERIALS
1. Bhatia S.K. (2003), New compensation management in changing
environment, Deep and Deep, Publishers, New Delhi.
2. Subha Rao.P., Rao, V.S.P, Personnel/Human Resource Management,
Konark Publishers, Pvt Ltd, Delhi, 1997.
3. Mamoria, C.B. and Ganker, S.V., Human Resource Management, Himalaya
Publishing House, Delhi, 2008.
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19.9 ASSIGNMENTS
Case Study (1)
In 2007, the Indian subsidiary of a multinational refinery became a
Government of India company. The government company had announced an
ambitious expansion programme which meant doubling the work force in less than
four years. In 2007 at the time of wage revision, the union and management agreed
to a two-tier pay structure. Those already employed will be eligible for a higher
grade and those who are (to be) recruited afresh will get a lower grade though jobs
are similar in skill, responsibility and effort. Both the union and the management
justified that this is an innovative practice widely followed in deregulated
companies abroad, particularly the airlines in North America.
Questions
1. Is it fair agreement?
2. Would it contravene with the concept of equal pay for equal work?
19.10 SUGGESTED READING /REFERENCE BOOKS/SET BOOKS
1. Argote, L. & Ingram, P. (2000). Knowledge Transfer in Organizations:
Learning from the experiences of others‘. Organization Behaviour and
Decision Processes, 82(1), 1-8.
2. Armstrong, M., (2006), Organization Development, Change &
Transformation, A Hand Book of Human Resource Management Practice,
Kogan Page Ltd. London
3. Burgoyne, J. (1988). Management Development for the Individual and the
Organisation. Personnel Management, 40-44.
4. Catalanello, & Kirkpatrick, D. L. (1968). Evaluation training programs—the
state of the art. Training and Development Journal, 22, no. 5, 2-9.
5. Fisher, Cynthia d, Schoenfeldt Lyle F. Shaw James. B (2004) Human
Resource Management, Biztantra, New Delhi p.543.
19.11 LEARNING ACTIVITIES
1. Make an enquiry with employees about the compensation packages offered
to them and their satisfaction. Understand the different types of
compensation offered by the company both in monetary form and non-
monetary form. Ask them which one has made huge impact on their job
satisfaction.
19.12 KEYWORDS
Compensation, Monetary and Non-Monetary Compensation, Compensation
Policies, Perquisites, employee’s satisfaction, Compensation package, compensation
management.
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LESSON –20
EXECUTIVE COMPENSATION
20.1 INTRODUCTION
Compensation or remuneration for the executive managers is different from
compensation for other employees in most the organizations. Executive
compensation covers employees that include presidents of company, chief executive
officers (CEOs), chief financial officers (CFOs), vice presidents, occasionally
directors of the company, and other upper-level managers. These high level
employees are paid executive compensation.
Usually only those members of your most senior management team qualify for
executive pay. It is usual the members of the “C-Suite.” (A widely-used slang term
used to collectively refer to a corporation's most important senior executives. C-
Suite gets its name because top senior executives' titles tend to start with the letter
C, for chief, as in chief executive officer, chief operating officer and chief
information officer.)
20.2 OBJECTIVES
After reading this lesson you should be able to understand
• Executive Compensation Plans.
• Benefits and Employee Services
• Fringe Benefits – Coverage of Fringe Benefits – Employee Services.
• Knowledge Creation and Management
• Virtual Organization
• Emerging HR Trend.
20.3 CONTENTS
20.3.1 Components of Executive Compensation
20.3.2 Employee Benefits
20.3.3 Types of employment benefits
20.3.4 Objectives of Fringe Benefits
20.3.5 Types of Fringe Benefits
20.3.6 Knowledge Creation
20.3.7 Managing Knowledge Creation
20.3.8 Virtual Organization
20.3.1 Components of Executive Compensation
Base salary
• Incentive pay, with a short-term focus, usually in the form of a bonus
• Incentive pay, with a long-term focus, usually in some combination of stock
awards, option awards, non-equity incentive plan compensation
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• Enhanced benefits package that usually includes a Supplemental Executive
Retirement Plan (SERP)
• Extra benefits and perquisites, such as cars and club memberships
• Deferred compensation earnings
Many organizations, especially large ones, administer executive compensation
somewhat differently than compensation for lower-level employees. An executive
typically is someone in the top two levels of an organization, such as Chief
Executive Officer (CEO), President, or Senior Vice-President.
20.3.2 Employee Benefits
Employee benefits are optional, non-wage compensation provided to employees
in addition to their normal wages or salaries. These types of benefits may include
group insurance (health, dental, vision, life etc.), disability income protection,
retirement benefits, daycare, tuition reimbursement, sick leave, vacation (paid and
non-paid), funding of education, as well as flexible and alternative work
arrangements. Although expensive, there are many intrinsic benefits to providing
your employees with a comprehensive benefit plan. For most, it is the ability to find
and keep highly qualified staff that is the key driver. With the sector being highly
competitive and the number of new employees entering the workforce dwindling,
employers are challenged to become even more creative and responsive in the
design, timing and generosity of their benefit plans. The more progressive the
organization, the more flexible the structure is in response to today’s challenges:
i.e. like having four different generations of employees working side by side.
Employers who continue to provide the more traditional and limited program, may
find it more difficult to find and keep different types of employees.
Here are just a few of the advantages of offering benefits to your employees:
For employers
By providing increased access and flexibility in employee benefits, employers
can not only recruit but retain qualified employees
• Providing benefits to employees is seen as managing high-risk coverage at
low costs and easing the company's financial burden
• Employee benefits have been proven to improve productivity because
employees are more effective with they are assured of security for themselves
and their families
• Premiums are tax deductible as corporation expense, which means savings
for the organization
For employees
Employees can experience a peace of mind which leads to increased
productivity and satisfaction by being assured that they are their families are
protected in any mishap
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• Employees with personal life and disability insurance can enjoy additional
protection including income replacement in the event of serious illness or
disability
• Employees can feel a sense of pride in their employer if they are satisfied
sati
with the coverage they receive
Cash is not enough today to recruit and retain top talent for your business.
Providing an attractive benefits plan is just as important. Employee benefits are
given to an employee in the form of incentives, providing in insurance,
surance, over time
payment or in non-financial
financial form like giving training & development for employees
to develop their career and most importantly providing flexible working hours to
balance between work and life of employees.
In a recent survey, employees listed flexible work arrangements along with
additional fixed pay and higher incentives as the top three preferred benefits.
20.3.3 Types of Employment Benefits
Employers who hope to retain solid, hard hard-working
working employees should be
prepared to offer basic employee
mployee benefits. In addition to salary, good benefits
provide important resources that not only help build a positive working relationship
between employer and employee but also promote good work habits and financial
practices. Employee benefits will vary depending on the employer, and it is
important for business owners to carefully consider their options. For example, the
type of industry in which your business falls will help determine the types of basic
employee benefits important to your staff. A job that requires employees to work
outside in inclement weather, for example, might offer more paid sick leave than an
indoor office position. Different kinds of employment benefits are as follows;
Paid Vacations
Employee benefits includes vacations for employees for certain period of time
during the employment. Jobs under present corporate environment are stressful
which eventually effect the performance of the employee over a period of time.
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Vacations makes employee re-energize and makes employee to forget about work
stress what they had faced in the job.
Paid time off
The definition of paid time off is any time not worked by an employee for which
the regular rate, a fixed or a prorated amount of pay, is accrued and paid to the
employee.
Perquisites
The term perqs (also perks)is often used colloquially to refer to those benefits
of a more discretionary nature. Often, perks are given to employees who are doing
notably well and/or have seniority. Common perks are take-home vehicles, hotel
stays, free refreshments, leisure activities on work time (golf, etc.), stationery,
allowances for lunch, and—when multiple choices exist—first choice of such things
as job assignments and vacation scheduling.
Employee Health Insurance Benefits
The most fundamental of all basic employee benefits is health insurance,
which should be provided so that staff members can visit the doctor when they fall
ill. Not only does this help the employee save money, but it also helps the employer
by encouraging staff members to get treatment, thus allowing them to return to
work more quickly and not spread illness to the rest of the staff.
Paid Leave
Similar to employee health insurance benefits, paid leave allows sick
employees to stay home and recover without jeopardizing their paychecks. Paid
leave, like paid vacation, can take many forms. For example, maternity and
paternity leave.
Retirement Plans
A retirement plan allows employees to prepare for their futures, securing their
financial stability after they have aged out of the work force. Furthermore, it is
easier for businesses to offer retirement benefits than most people think.
Fringe Benefits
Employees are paid several benefits in addition to wages, salaries, allowances
and bonus. These benefits and services are called “fringe benefits’ because these
are offered by the employer as a fringe. The main features of fringe benefits are as
follows: (i) fringe benefits are a supplement to regular wages or salaries (ii) these
benefits are paid to workers not for any specific job or performance but to stimulate
their interest in the work (iii) fridge benefits involve a labour cost for the employer
and are not meant directly to improve efficiency. (iv) fringe benefits refer to items
for which a direct monetary value to the employee can be ascertained (v) fridge
benefits add to the workers standard of living or welfare and (vi) these benefits may
be statutory or voluntary
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20.3.4 Objectives of Fringe Benefits
Despite all the perceived benefits of e-learning, research indicates that a high
rate of students who commence e- learning courses do not finish them (Dutton &
Perry, 2002). Many are dissatisfied with the e-learning experience. A study by Loh
(2007) on e-learning effectiveness in the manufacturing industry in Malaysia found
that system quality, information quality, and perceived usefulness influenced e-
learning effectiveness positively. Another study by Md. Hashim Nordin (2007) that
investigates the factors contributing to continuance intention and user satisfaction
in e- training has found that information quality and system quality were important
factors leading to increase in usage and user satisfaction of e-learning in workplace.
Higher level of satisfaction was also found to increase the intention to continue
use.
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ANNAMALAI UNIVERSITY PRESS 2021 – 2022