HUMAN RESOURCE

MANAGEMENT
SURABHI KULSHRESTHA
 INDEX
SL NO Topics Page No

1 Introduction to HRM

2 Induction & Orientation

3 Joining & Exit Formalities
4 HR Policy
5 Performance Appraisal
6 Reward & Recognition
7 Attrition & Employee Turnover
8 Employee Retention
9 Employee Engagement
10 Motivation
11 Organizational Cultural & Discipline
12 Training & Development
13 Compensation Management
14 Job Analysis
15 Grievance Handling
16 HR Challenges
17 MIS & HRIS Reports
Human Resource Management
What is Human Resource Management?
The leadership & management of people within an organization using systems, methods,
processes & procedures that enable employees to optimize their performance & in turn their
contribution to the organization & its goals.
Functions of HRM
Human resource management involves blending the traditional administrative functions along
with the changing concepts of employee welfare in the organization. The retention of
employees is dependent on how they are perceived & treated in the organization based on
their performance, skills & abilities. The extent of activities carried out by the HR is dependent
on the size & scope of the organization, the nature of operations & the attitude of
management towards the employees.

HRM Functions are classified into two categories:

  Managerial Function: -
Planning: -Plan & research about wage trends, labour market conditions, union demands &
other personnel benefits. Forecasting manpower needs etc.
Organizing: - Organizing manpower & material resources by creating authorities &
responsibilities for the achievement of organizational goals & objectives. Staffing: -Recruitment
& Selection
Directing: - Issuance of orders & instructions, providing guidance & motivation of employees to
follow the path laid - down.
Controlling: - Regulating personnel activities & policies according to plans. Observations &
comparisons of deviations
 Operational Function:
Procurement: - Planning, Recruitment, & Selection, Induction & Placement Development: -
Training & Development, Career Planning & Counselling Compensation: - Wage & Salary,
Determination & Administration Integration: - Integration of human resources with
organization.
Maintenance: - Sustaining & improving working conditions, retentions, employee
communication.
Separation: - Managing separations caused by resignations, terminations, layoffs, death,
medical sickness etc.

What is HR Generalist?
A Human Resources Generalist is a really key person within the human resources function of an
organization. Principally, the HR Generalist is responsible for the day-to-day management of
HR operations, which means that they manage the administration of the policies, procedures
and program of the organization.
The following are the main functions of a HR generalist:
Induction & Orientation
Joining Formalities — Offer Letter Exit Formalities — Relieving Letter Retention
Policy Enhancement Performance Management Performance Appraisal Rewards & Recognition
Training & Development Employee Engagement Grievance Handling Motivation
Organizational Culture & Discipline Job Analysis
HR Challenges
Attrition & Employee Turnover Compensation Management
 Induction & Orientation
Induction: - Induction is a process which takes place to welcome the newcomers to the
organization to make them ready for their job.
Orientation: - A process which involves assimilation of new joinee in the organization to
rehabilitate him/her at the new workplace & provided with basic information about the
company.
Objectives of Induction:
1. To reduce the initial anxiety all new entrants feel when they join a new job in a new
organization.
2. To familiarize the new employees with the job, people, work-place, work environment and
the organization.
3. To facilitate outsider - insider transition in an integrated manner.
4. To reduce exploitation by the unscrupulous co-workers.
5. To reduce the cultural shock faced in the new organization.
Steps in Induction Program
J Welcome to the Organization J Explain about the company
J Show the location, department where the new recruit will work ■/ Give the company's
manual to the new recruit
J Provide details about various work groups
J Give the details about pay, benefits, holidays, leaves etc. Emphasize the importance of
attendance & punctuality
J Explain about the future training opportunities & career prospects
J Clarify doubts, by encouraging the employees come out with the questions.

Types of Induction:
 Formal & Informal Induction
 Individual & Collective Induction
 Serial & Disjunctive Induction
Informal induction: - Informal induction employees are directly put on the job. It promotes
innovative ideas. Choice depends on management's goal.
Formal Induction: Formal induction has a structured program. Formal program helps a new
hire in acquiring a known set of standards.
Individual Induction: Individual Induction preserves individual differences. Individual Induction
is expensive & time consuming. Smaller firms go for the individual induction.
Collective Induction: Collective Induction is likely to develop homogeneous views. Collective
Induction is less time consuming. Large firms go for the collective induction.
Serial Induction: An experienced employee inducts a new hire in case of serial Induction.
Maintains traditions and customs.
Disjunctive Induction: New hire do not have predecessors to guide them. Produces more
inventive employees.

Problems of Orientation/lnduction
1. Busy or Untrained supervisor
2. Too much information
3. Overloaded with paperwork
4. Given menial tasks
5. Employee thrown into action soon
6. Wrong perceptions of employees

How to make induction program effective

 Feed forward of the possible problems and solutions
 A warm and friendly welcome will reduce the possible problems
 Involvement of Top Management
 Determination of Information Need of the new employees
 Planning the presentation of information
 A phased induction program would place the new employee at ease

Joining & Exit Formalities

This is completed by an employee when he joins the company and this is done during
the orientation/induction day.HR takes the responsibilities of his /her joining in the
company and also takes the responsibilities to keep the track of the information of
the employee. The following are as follows.
> Employee track record
> Employee Managing
> Company audit requirements > Criminal records
> Statutory compliance
There are two types of joining formalities documentation

Submission by the employee

Education certificate: Degree certificate or mark-sheet
Work experience certificate: Relieving letter / last drawn salary slips/ No due
certificate/ Appraisal letter/ TDS certificate
DOB (Date of birth): Birth certificate or 10th mark-sheet
 Photo ID Proof: Voter card or PAN card
Address Proof

Receiving from the HR

Appointment letter ■/ Policy Manual
Bank account opening form
 ID card & Access card

Exit Formalities
Employee exit management or Off-boarding describes the consciously designed
separation process when an employee leaves the company, for which he has
previously worked within the scope of a work or service contract.
Steps in Exit Process
Resignation letter to the manager & to the HR
Acknowledging the resignation letter
Meeting with the employee & HR
Pending projects to complete
Handover process/ projects
Notice period
Exit interview
Relieving formalities
Full & final settlement

HR Policy
Policies are the ground rules that keep people and processes in order. A set of
proposals & action that act as a reference point for managers in their dealing with
their employees.

Need for HR Policy:

 To have formal statement on corporate thinking which will serve as a
guideline for action
 To establish consistency in the application of the policies over a period.
 To accord consistent treatment to all the employees -to avoid favouritism
and discrimination.
 To assure certainty of action and promote stability in an organization.
 To serve as standard for evaluating performance.
 To provide just and fair treatment. Policies build employee enthusiasm and
loyalty
HR Policies Includes:
Employee’s newsletters and house journals - communication media and
suggestion system
Health and hospitalization
Vacation with pay
Sickness death and maternity benefits
Company stores, social security
Collective bargaining, discipline
Encasements, PR, Labour Relations
Prohibited activities
Performance Appraisal

Performance Appraisal
Performance appraisal is a method of evaluating the behaviour and performance of
employees in the workplace. This includes appraisal of both qualitative and
quantitative aspects of job performance.

Features of Performance Appraisal

1. Systematic process of evaluation of an employee.
2. Analysis of the strengths and weaknesses of an employee.
3. To find out how well an employee is performing the job.
4. Appraisal is done periodically.
5. It is based on a definite plan.
6. Performance appraisal is different from job evaluation.
7. Performance appraisal is a continuous process that is accepted by every
organization
Need of Performance Appraisal
There are certain requirements expected from the employees for which performance
appraisal are conducted.
Providing information about the performance ranks on which decision regarding
salary fixation, promotion, etc. are taken.
Review of the performance of the subordinates.
Providing information that helps to counsel the subordinates.
Getting information to diagnose deficiency in employees regarding skills,
knowledge, etc.
To prevent grievance and in disciplinary activities.

Steps in Performance Appraisal

 Define the Problem
 Preliminary Inspection and Plan the Work
 Data Collection and Analysis
  Apply the Cost Approach
 Apply the Direct Comparison Approach
 Apply the Income Approach
 Reconciliation and Final Estimate
 Write the Appraisal Report

Methods of Performance Appraisal

 Trait Method:
Graphic rating scales
Ranking method
Parried comparison method
Forced distribution method
Checklist method
Essay method or free-form appraisal
Confidential reports
  Behaviour Method:
Behaviour checklist method
Critical incident method
Behaviour anchored rating scales (BARS)
Assessment centre
Psychological appraisal

 Modern Method:
The modem methods are based on accomplishments of an employee in order to have
evaluation. The accomplishments include sales turnover, the number of customers
served, as well as the relationship with the customers and dealers.
360-degree appraisal:
Any person having through knowledge about the job contents can appraise an
employee. According to this method all parties related to an organization will be
 rating an employee. Thus, performance appraisal by supervisors," peers,
subordinates, customer employees themselves (self appraisal), other users of
service, and consultants is known as 360-degree appraisal. 360- degree appraisal
is a systematic assessment of an employee regarding his present job,
organizational expectations and his potentialities for a better job.
Supervisor appraisal:
While appraising the performance, supervisors include superiors of employees from
the same department, departmental head or managers. Usually, immediate superiors
appraise the performance, which in turn is reviewed by the departmental head or
manager.
Peer appraisal:
Peer appraisal is experimental with military personnel so far. Peer Appraisal is a
method of evaluating the employee performance by his co-employees rather than by
his manager as they have sufficient opportunity to review the performance on a daily
basis.
Subordinates’ appraisal:
This is a novel method in which subordinates may be asked to evaluate the superiors.
This rating is quite useful in identifying competent superiors.
Self-appraisal:
If individuals understand the objectives, they are expected to achieve the standards
by which they are to be evaluated, they are to a great extent in the best position to
appraise their own performance. Since employees are interested in the self-
development, they appraise systematically and may become highly motivated also.
Customer and other related parties:
Employee performance a service organization relating to their behaviour,
promptness, speed in doing the job, and accuracy can be judged by customers and
suppliers (related parties to an organization).
Consultants:
Consultants are trained raters appointed when employees/employers do not trust
self appraisal, peer appraisal, or subordinate appraisal. Consultants observe the
employees at work for a long period before rating.
Purpose of Performance Appraisal

The sole purpose of a performance management system is to assess and ensure that
the employee is carrying out their duties which they are employed to do in an
effective and satisfactory manner, which is contributing to the overall business
objectives.

Reward & Recognition

Recognition: - is defined as the public acknowledgement of superior performance
of specific activities.
Reward: - is defined as benefits, such as increased salary, bonuses & promotion which
are conferred for generally superior performance with respect to goals.
Purpose of R&R
To recognize individual & team efforts
To re-enforce positive behaviors
To create a better working environment
To have a system that recognizes as many people as possible.
Difference between Reward & Recognition
Rewards are tangible. Recognition is intangible.
Rewards will always be transactional. Recognition should always be relational.
Rewards are simply consumed. Recognition is mostly experienced.
Rewards are transferable. Recognition is non-transferable.
Rewards are certainly conditional. Recognition happens to be unconditional.
Rewards are expected. Recognition is a surprise.
Rewards are economical. Recognition is emotional.
Rewards are outcome driven. Recognition is focused on behaviors.
Rewards are fixed. Recognition is flowing.
Rewards are impersonal. Recognition is personal.

OBJECTIVES

• To analyse Reward and recognition programs, its goals and objectives.

• Approaches to successful reward and recognition program design.
• Techniques to measuring employee satisfaction with reward and recognition
programs.
• Approaches to determining program success and performance.
Technologies that enhance the administration and communication of reward and
recognition programs.
• To know the employee's personal intention regarding rewards and
recognition.
To know the criteria to qualify the reward.

Impact of Recognition Program

To Senior To Employees To Manager of Program

Management
Increase Productivity Satisfy recognition needs Efficient administration
Improves Attitude Create a positive Employee excitement &
recognition experience relations
Build loyalty & Provide a wide selection Involves all employees
commitments of attractive personalized
awards
Generate positive Build belongingness & Develops a partnership
feedbacks loyalty with the workforce
Empower workforce
Assure Efficiency

Procedures of Reward & Recognition

 TARGET YOUR AUDIENCE: - When managers and supervisors think about

appreciation, they may repeatedly suppose that one plan fits all. Although each
organization has tactical goals to achieve, each work component within the
organization has distinct groups of employees who generally require different
motivational plan. First, you require deciding which part of your work unit or
agency that needs to be motivated by achieving goals within the work
environment.
 DECIDE AN APPROPRIATE NAME FOR THE PROGRAM: - Choose a declaration
regarding the purpose of the program that can b e clearly understood by
employees. Decide an appropriate name for the program; it should be
compatible with the work unit and/or agency culture.
 BUILD A BUDGET: - Budget includes, the costs of the promotional resources,
the potential number of recipients, the costs of the awards, the presentation
type (formal/informal; location], the number of citizens expected to attend the
reward presentation, the expenses of foodstuff, facilities, streamer, equipment,
etc.

 DEVELOP CRITERIA: - These are the standard, frequently written, that

participants need to meet to succeed in the program. Be precise about the
timeframe for which the target must be completed. Create a measurement
system that is understood by employees, viewed as fair, and quantifiable.
 Consider how often progress is reported (daily, weekly, monthly, quarterly). Send
reports on a regular basis to keep interest levels high.

 DETERMINATION OF APPROPRIATE REWARD: - Choosing awards is one of

the most important steps in the success of plan. If the reward selected does not
motivate or inspire employees to achieve the affirmed goal, the agenda may
have less contribution and not achieve the level of success expected. By
intriguing into deliberation input from the supervisors, employees, and/or the
besieged spectators, you should be able to decide the rewards that do or do not
have connotation. Diversity is significant because beneficiary have varying tastes
and interests. There are a broad variety of awards that include financial awards,
n on-financial awards, and recognition leave.

 COMMUNICATION OF PROGRAM TO EMPLOYEE: - Program communication

is necessary from the start up and should be continuing. By connecting
employees and supervisors in n the growth of the program, firm can be on the
 right way. Mystery is a huge way to attract the interest of employees.
Throughout the plan, offer status updates via mail, E - mail or Intranet to the
employees.

 PRESENT THE AWARDS: - It should be make sure that presentation matches

the significance of the appreciation. One may prefer to use formal or informal
means of appreciation. However, as a manager, a person needs to believe the
additional financial impact of a formal presentation. Presentation should worthy
of the reason that it is for recognizing the employee.

 EVALUATE THE PROGRAM: - It’s important to measure the success of

recognition program by considering both tangible and insubstantial results. Ask
for comment from upper management, and supervisors and employees
(participants and non - participants). Share out an employee appraisal survey
prior to and during the program initiative also may be valuable. Also, appraisal
income rates and attendance/delayed records should provide some indication of
 success of your agenda as well. Consider demeanor a survey of your customers
that may indicate the success of your agenda. Official surveys or casual customer
criticism can provide the basis for your evaluation.

TYPES OF REWARDS
1. Extrinsic rewards: concrete rewards that employee receive.
a) Bonuses: Usually annually, Bonuses motivates the employee to put rn all
endeavours and efforts during the year to achieve more than a satisfactory appraisal
that increases the chance of earning several salaries as lump sum. The scheme of
bonuses varies within organizations; some organizations ensure fixed bonuses which
eliminate the element of asymmetric information, conversely, other organizations
deal with bonuses in terms of performance which is subjective and may develop
some sort of bias which may discourage employees and create setback. Therefore,
managers must be extra cautious and unbiased.
b) Salary raise: Is achieved after hard work and effort of employees, attaining and
acquiring new skills or academic certificates and as appreciation for employees duty
(yearly increments) in an organization. This type of reward is beneficial for the reason
that it motivates employees in developing their skills and competence which is also
an investment for the organization due to increased productivity and performance.
This type of reward offers long-term satisfaction to employees. Nevertheless,
managers must also be fair and equal with employees serving the organization and
eliminate the possibility of adverse selection where some employees can be treated
superior or inferior to others.
c) Gifts: Are considered short-term. Mainly presented as a token of appreciation for
an achievement or obtaining an organizations desired goal. Any employee would
appreciate a tangible matter that boosts their self-esteem for the reason of
recognition and appreciation from the management. This type of reward basically
provides a clear vision of the employee's correct path and motivates employee into
stabilizing or increasing their efforts to achieve higher returns and attainments.
Monetary gifts, such as Gift cards are also more likely to be used for luxury purchases
and can build an emotional bond with the organization.
d) Promotion: Quite similar to the former type of reward. Promotions tend to effect
the long-term satisfaction of employees. This can be done by elevating the employee
to a higher stage and offering a title with increased accountability and responsibility
due to employee efforts, behaviour and period serving a specific organization. This
type of reward is vital for the main reason of redundancy and routine. The employee
is motivated in this type of reward to contribute all his efforts in order to gain
managements trust and acquire their delegation and responsibility. The issue
revolved around promotion is adverse selection and managers must be fair and
reasonable in promoting their employees
e) Other kinds of tangible rewards.

2.Intrinsic rewards: tend to give personal satisfaction to individual:

 Information / feedback: Also a significant type of reward that successful and
effective managers never neglect. This type of rewards offers guidance to
employees whether positive (remain on track) or negative (guidance to the
correct path). This also creates a bond and adds value to the relationship of
managers and employees.
Recognition: Is recognizing an employee's performance by verbal appreciation.
This type of reward may take the presence of being formal for example meeting
or informal such as a "pat on the back" to boost employees self-esteem and
happiness which will result in additional contributing efforts.
Trust/empowerment: in any society or organization, trust is a vital aspect
between living individuals in order to add value to any relationship. This form of
reliance is essential in order to complete tasks successfully. Also, takes place in
empowerment when managers delegate tasks to employees. This adds
importance to an employee where his decisions and actions are reflected.

Types of Recognition
 Recognition events such as banquets or breakfasts
Employee of the month or year recognition
An annual report or yearbook which features the accomplishments of employees
Department or company recognition boards
Informal or spontaneous recognition
Additional support or empowering the employee
Symbolic recognition
Latter of expressions (thanks...)

METHODS OF REWARDS & RECOGNITION

 Basic Pay: - Pay is an essential factor, which is closely related to job
satisfaction and motivation. Although pay may not be a reward as this is a static
amount, which an employee will be paid every month, it will be considered as a
reward if similar work is paid less.
 Additional Hour's Rewards: - This is similar to that of overtime. However, it is
paid to employees if they put in an extra hour of work for working at unsocial
hours or for working long hours on top of overtime hours.
 Commission: - Many organizations pay commission to sales staff based on
the sales that they have generated. The commission is based on the number of
successful sales and the total business revenue that they have made. This is a
popular method of incentive.
 Bonuses: - Bonuses will be paid to employees, who meet their targets and
objectives. This is aimed at employees to improve their performance and to work
harder.
 Performance Related Pay:-This is typically paid to employees, who have met
or exceeded their targets and objectives. This method of reward can be
measured at either team or department level.
 Profits Related Pay: - Profits related pay is associated with if an organization
is incurring a profit situation. If the organization is getting more than the
 expected profits, then employees receive an additional amount of money that
has been defined as a variable component of the salary.
 Payment by Results: - This is very similar to that of profit related pay. This
reward is based on the number of sales and total revenue generated by the
organization.
 Piece Rate Reward: - Piece rate reward is directly related to output. The
employees get paid on the number of 'pieces' that they have produced. These
pieces will be closely inspected to make sure that quality standards are being
met.
 Recognition: - Employees will not always be motivated by monetary value
alone. They do require recognition to be motivated and to perform well in their
work.
 Job Enrichment: - This is a common type of recognition that is aimed at
employees to get motivated. Job enrichment allows more challenging tasks to be
included in the day- to-day tasks performed by the employee. Working the same
 way every day may prove to be monotonous to the employees. Therefore, there
will be a lack of interest and the performance drops.
 Job Rotation: - Unlike job enrichment, job rotation refers to shifting
employees between different functions. This will give them more experience and
a sense of achievement.
 Teamwork:-Teamwork is also considered as recognition. Creating teamwork
between team members will improve performance at work. Social relationships
at work are essential for any organization. Healthy social relationships are
considered as recognition to the employees. This improves their morale and
performance.
 Empowerment: - Empowerment refers to when employees are given
authority to make certain decisions. This decision making authority is restricted
only to the day -to-day tasks. Though, by giving employees authority and power
can lead to wrong decisions to be made which will cost the company. So,
Empowerment will not relate to day-to-day functioning authority
 Training: - Many organizations place a greater emphasis on training. This is
considered as recognition for employees. Training could vary from on the job
training to personal development training. Training workshops such as train the
trainer or how to become a manager will give employees a chance to switch job
roles and this will increase their motivation levels.
 Awards: - This again is an important type of recognition that is given to
employees, who perform better. Organizations have introduced award systems
such as best performer of the month, etc., and all these will lead employees to
perform better.

Attrition & Employee Turnover

Attrition in business can mean the reduction in staff or employees in a company
through normal means, such as retirement and resignation, the loss of customers or
clients to old age or to growing out of the company's target demographic.

Types of Attrition

Attrition is broadly categorized into two definitions: Voluntary and Involuntary.

Involuntary Attrition: Involuntary termination is the employee’s departure at the
hands of the employer. There are two basic types of involuntary termination,
known often as being "fired” and "laid off." To be fired, as opposed to being laid
off, is generally thought of to be the employee's fault, and therefore is
considered in most cases to be dishonorable and a sign of failure.
Voluntary Attrition: Voluntary attrition is the employee's departure on his own.
This happens when an employee resigns from an organization for personal or
 professional reasons. Voluntary attrition is one of the major pain points for
companies in growing economies.

Benefits of Attrition
Space for entry of new talents
Removes bottleneck in the progress of the company
Evolution of high performance teams.

Impact on company
Loss of productivity J High cost of recruitment J High cost of training
Wastage of precious time on training & selection process J Affects the budget of
a company
Loss in revenue.
Factors affecting Attrition

 Personal Motivation: There has been a change in an employee’s personal life that
compels them to switch jobs. New parents might want to move to a city with
 better schools, a mid-career professional may want to return to school – these
reasons are endless.
 Professional Motivation: An employee might leave because they felt there simply
aren’t enough opportunities for career progression in your organization.
 Workplace Challenges: Challenges in the workplace can range from
uncollaborative leadership to the lack of requisite tools for work.
 Poor employee to job fit: We have all seen employees who join a company full of
enthusiasm, only to leave a month or two later. This could be an indicator that
the job was not right for that candidate, to begin with.

Calculation of attrition rate

To calculate attrition you need to divide the number of employees that left during the
period by the average number of employees for the period, then multiply this figure
by 100 to give you the percentage attrition rate.  This attrition formula is shown
below:
 For example, suppose a telecommunications company had 150 employees as of
April 1, 2015. During that month, 20 employees voluntarily left the company.
Also, the company hired 25 new employees.
 First, calculate the average number of employees. The beginning number was
150. If 20 people left and 25 people were hired, then the ending number was
155. The average number of employees for that month can be calculated with
the equation (150+155)/2=152.5}(150+155)/2=152.5.
 Next, calculate the monthly attrition rate. In this month, 20 people left, and the
average number of employees was 152.5. The monthly attrition rate can be
calculated with the equation 
 (20/152.5)*100=.1311*100=13.11}(20/152.5)*100=.1311*100=13.11
 The attrition rate for April 2015 was 13.11 percent.
 Employee Turnover
Employee Turnover is the movement of members across the boundary of an
organization.
Factors Affecting Employee Turnover
There are two types of factors that affect employee turnover:
1. External Factor:
a) Employment brand
b) Candidate's behavior
c) Candidate's skill
d) Job fit
2. Internal Factor:
a) Recognition
b) Training & Development
c) Performance Management
d) Communication
e) Manager quality
f) Compensation

Calculate Employee turnover

Example : if you have 45 employees at the start of the year and 55 at the end and 5
employees left during that year, your annual turnover rate would be:
 Employee Retention
Employee retention is a process in which the employees are encouraged to remain
with the organization for the maximum period of time or until the completion of the
project. Employee retention is beneficial for the organization as well as the
employee."

Importance of Employee Retention

> The cost of turnover
> Loss of company Knowledge
> Interruption of customer Service
> Turnover leads to more turnover
> Goodwill of the company
> Regaining efficiency
Benefits/Advantages
❖ Costs and Benefits: There is a huge cost associated with every employee in an
organization. The hiring cost which was incurred during the initial phase, training cost
that was a part of initial training, on job training and various mid employment
training, exit costs which would include payments, replacements and payouts. All
these costs add up to a lot of money for the organization. It is always in the best
financial interest to retain employees who are part of your success and failures. The
employees also do not get the full benefit of these costs unless they stay with the
organization and utilize their potential.
❖ Experienced employees: When employees leave the organization they take away
with them the expertise they have achieved over the years of the organization. These
employees know the process in and out and are most likely to achieve targets with
best utilization of the resources when they feel that they are not compensated
properly or they feel under resourced they take such decision. It is always best for
organizations to evaluate advantages and disadvantages of talent management for
ensuring the reasons and retain such talent within the organization.
❖ Culture of Organization: It is never in the best interest that employees leave the
organization frequently. Culture is built by the people in the system. When there are
employees who have been with the organization for long they bring with them a
healthy working culture. This is negatively reflected on the culture when employees
leave the organization. Building strong culture is one of the priorities of every
organization and if retaining employees is beneficial for them then they should make
efforts to ensure that a strong culture is built.
❖ Loyalty Benefits: Every organization needs loyal employees to ensure
sustainability in long run. These loyal employees add to the company's brand,
satisfied customers and happy work place. There are many hidden benefits of loyal
employees which can be seen on different platforms. Strong Employee Retention
policies in an organization will ensure that these loyalty benefits are enjoyed by the
organization and the employees.
❖ Quality at Work: The work quality is adversely affected when employees who
have been trained for a job leave the organization. Employees leave creating a gap in
the process, this creates troubles in managing daily tasks which affects the quality of
work. Other employees are over burdened and feel exploited. Immediate
replacement of these employees becomes impossible and thus employee retention
becomes advantageous to ensure quality of work.
❖ Workflow Issues and Problems: When the employees leave an organization, the
work flow gets affected. Training would be required to ensure that a suitable
employee takes over the task. Till the time, a replacement is found, the work does
not go as planned and this might affect the relationship with clients.
Disadvantages
❖ Non performing employees are retained: Who to retain is an important decision
that every organization has to make. Retention works adversely when employees
who are non-performing are retained. There are times when employees are not
ready to grow and they are a liability to the organization. These employees do not
add value to the team and should not be retained. This however calls for a good
policy to ensure that these employees are identified.
❖ Groups in Workplace: Retention many times makes the power to move in wrong
hands. This happens when employees take it their head when they are retained over
estimating their worth and create a negative group and influence others. This group
eventually starts affecting the quality and flow of work which might have been the
major reason why they were retained at the first place. This should be attended
immediately to ensure that such groups do not grow strong.
❖ Bad Working Environment: Culture is an important reason why retention policies
are needed, when retention starts destructing the culture then it is time to rethink.
Many times retention makes employees under performing and they demand more
than they deserve. They even create a negative work environment. The trick is to
ensure that the one who is being retained has an intention to add to the positive
environment and not create a negative environment at work.
Retaining based on level of jobs
Entry Level
Salary hike
Motivation
Training & Development
Incentives
Perks
Cab facilities
Sodexho cards
Career growth
Recreations
Rotational shifts
Shift allowances
Mid Level
Perks
Promotions
 Transfers
Internal job posting
Job rotations
Increments
Sodexho cards
Medical insurance
Rewards & recognition
Training & development
Work from home option
Incentives
Shift allowances
On-site opportunities

High Level/Senior Level

Flexible timings
Medical insurance
 Decision making authority
Policy making authority
Club memberships
Fringe benefits
Employee shares
Transport/cab facilities
On-site opportunities

Types of Employee Turnover & Retention

 Employee Engagement
Employee engagement is the emotional commitment the employee has to the
organization and its goals. This emotional commitment means engaged employees
actually care about their work and their company
Real time Employee Engagement Activities
• Problem solving committee
• Quality assurance committee
• Conducting soft skills training program as well as required training programs
• Online real-time tracking of progress. Employees can view company progress
towards targets & goals.
• Provide long term strategic vision for business growth.
• Indoor Games as well as Outdoor games, like Chess, Cricket, Badminton etc...
• Celebration of Employees Birthday
• Sexual harassment committee.

Types of Employee Engagement

Depending on the level of commitment, the employees can be classified into three
categories: Actively Disengaged, Actively Engaged, and Not Engaged.
Engaged Employees: The engaged employees are those who work with full passion
and are emotionally attached to the organization. They are innovative and provide
new ideas and consistent performance to move the organization forward. They
personalize the company's goals and objectives, and always work above and beyond
their job requirements for the betterment of the organization.
Not Engaged Employees: Such employees do put in their time, but not passion and
energy into their work. These are the ones who do only what is asked of them. These
employees can hold either a negative or positive attitude towards the organization.
They consider their job as a paycheck, nothing more.
Actively Disengaged Employees: These employees are unhappy, resentful, and
spread negativity within the organization. However, despite doing less than the
minimum, these employees last longer in the firm by removing employees whom
they perceive will attain higher positions soon.

Motivation
Motivation is defined as the act of inspiring the employees to work or not to work
hard to attain the predetermined goal. It is the state of activating the person to do
something better. Motivation directs the acts and behaviors of person which drives
the people to act with full effort to achieve goals.

Types of Motivation
1. Positive or negative motivation:
If the motivation is classified on the basis of rewards or punishment used to motivate
employees, it can be classified into positive or negative motivation. In practice,
maximum organizations emphasize negative motivation which becomes temporary
and critical to organization in many cases. Positive motivation becomes permanent
and makes employees loyal towards organization. But, it is necessary to balance
positive and negative motivation to create the optimal results.
a. Positive Motivation:
If the motivation is based on incentives and reward for better performance, it is
known as positive motivation. Bonus, rewards, promotion, recognition, challenging
responsibilities, participation at decision making, etc. are used to motivate under
positive motivation. Thismethod is also called 'carrot approach' as employees get
rewards for every better result. Positive motivation creates self motivation and it
becomes long lasting. Employees themselves
put extra effort. They become more creative cooperative with each other for the
common objective. Employees work with dedication in a hope to fulfill their need.
Since it is human nature that fulfillment of one level of needs which creates rise of
next level needs. Positive motivation reduces the absenteeism rate and labor
turnover. Employees get praise and recognition under this type of motivation.
Positive motivation may be financial and non financial.
b. Negative motivation:
If the motivation is created on the basis of fear and punishment, it is known as
negative motivation. In negative motivation, warning, salary deduction, suspension,
penalty, holding grades, demotion, firing from job, etc. techniques are frequently
used. Creating a compulsion situation to employees perform a job is known as
negative motivation. This method does not consider about the like or dislike of
employees. Employees perform their job with fear and punishment. Negative
motivation makes the employees negative towards organization and leadership. Since
employees are negatively motivated, the rate of absenteeism, employee's turnover
rate becomes high whereas the performance becomes slow and low quality. It is
temporary nature and it provides loss to the organization in long run.
2. Internal and external motivation
If the motivation is classified on the basis of self induced or externally created
motivation, it can be classified in to internal or external motivation. Internal
motivation is created by heart of the employees whereas external motivation is
created by external means of motivation like better salary or facilities. Organizations
should balance the internal and external motivation as they can balance their
financial position.
a. Internal motivation:
If any person is satisfied by his/her performance, it provides motivation for additional
work. The motivation raised by the satisfaction of own performance is known as
internal motivation. Opportunity to work in a preferred area, challenging and
important job responsibilities, work autonomy, quality of work life, participation in
management, management by objective, job enrichment, effective job appraisal, etc.
serve as an source for internal motivation. It makes employees more productive and
creative. Since, it is raised from inner state of mind; it cannot be easily influenced by
general external reasons.
b. External motivation:
If a person is motivated by the praise or recognition, rewards or other financial
benefits and non financial facilities given by organization for his/her job performance,
the motivation is known as external motivation. Generally, employees with lower
level needs are motivated by this type of motivation. Since, their priorities are
economic benefit, financial reward, increment in salary, wages and allowances; they
can be motivated with external means of motivation.

3.Financial and non financial motivation:

If the motivation is classified on the basis of financial means provided to the
employees, it can be classified into financial and non financial motivation. Financial
means of motivation increases the economic burden whereas maximum employees
can be guided by financial needs. Thus, appropriate proportion of financial and non
financial means of motivation has to be maintained.
a. Financial motivation:
If economic or financial factors are mobilized for motivating the employees, then the
motivation is known as financial motivation. Reasonable or sufficient remuneration,
regular payments of salary and facilities, equitable wage, lawful bonus, competitive
and equitable reward, paid holiday, paying festival allowances, paying for overtime
etc. are some common means of financial motivation. Mostly, employees are
motivated through financial motivation. As stated above, financial motivation
increases the financial burden to the organization but this is most essential to fulfill
the basic needs of employees as well as to ensure their financial security.
b. Non Financial motivation:
If non financial benefits are applied for employee motivation, it is known as non
financial motivation. Motivating employees through the participating in decision
making, providing authority, job autonomy, systematic and regular performance
appraisal system, timely promotion, allocating challenging job, acknowledging
employees work, providing opportunities for career development, training and
development opportunities, providing educational leave, etc. are some common
examples of non financial motivation. Non financial motivational means focus to the
equality, justice and career opportunity.

4. Group and individual motivation:

If the motivation is classified on the basis of motivation focus to only an employee or
group of employees at a time, it can be classified into group or individual motivation.
Group motivation provides the benefits to a group of employees whereas the
individual motivation motivates to a particular employee.
a. Group Motivation:
If the motivational sources motivate to large number of employees at a same time,
the motivation is known as group motivation. Rewarding the whole department,
distributing bonus to all employees, providing collective responsibility, arranging
picnic or tour or entertaining programs to all employees, etc. are some common
examples of group motivation. Group motivation provides same motivation means to
all employees and facilitates to all the group members. Efficient managers try to
motivate large number of employees from the same source. Group motivation
reduces individual differences and feeling of biasness. This means group motivation is
one of the tools to provide the group justice and satisfaction. Thus, for the overall
organizational effectiveness and productivity, it is better to emphasize on group
motivation.
b. Individual Motivation:
If only an employee is motivated at a time by single means of motivation, then the
motivation is known as individual motivation. It cannot satisfy other employees while
motivating one employee i.e., only the employee gets the benefits of means of
motivation. Rewarding the best employees on the basis of performance appraisal,
rewarding or providing economic benefits to only one employee etc. are some
common examples of the individual motivation.

Process of Motivation
1.Unsatisfied Needs and Motives:
The motivation process starts from the unsatisfied needs. Human is motivated in
order to satisfy their unsatisfied needs. These needs strike psychologically or cause
tension within an individual. Therefore, to release from tension, each human being
need to fulfill the unsatisfied needs. To satisfy the unsatisfied needs, human being
directs efforts to action.
2. Tension:
When needs are created, they bring remarkable changes in the behavior of person.
Such changes in behavior are tension. The tension can be physical or psychological
stress or pressure. Such stress or pressure gives moral support to people to
concentrate their efforts. Environment can determine the rate or strength of tension.
If the environment is favorable to the person,
they feel low tension but if the environment is not in favor of person, they feel higher
stress.
3. Action:
Action is to change the plan into real sense. An individual engages in an action to
satisfy needs and motives so as to reduce the level of stress. To implement the plan
into action, the best alternative is selected from among many alternatives which can
be believed that helps to satisfy needs.
4. Goal achievement:
The state of getting or satisfying the required needs of people is the goal
achievement. Goals
can be achieved through proper use of resources. For this, people concentrate their
efforts to implement their plans. Only motivated employees can help to achieve
individual and organizational goal in an anticipated manners. Opportunity goals and
incentives play vital role in achieving the organizational goals. They shape the size
and quality of goal achievement.
5.Feedback:
Feedback is the response regarding the outcome of motivation. The outcome can be
positive or negative. It indicates how well the goal is accomplished. Once existing
needs and motives are satisfied, it ultimately creates new unsatisfied needs and
motives. Thus, it is an ongoing process.

Features of Motivation
1. Psychological process:
Motivation is psychological process which concerns with satisfying needs. Needs,
motives and drives are leading forces to motivate individual. For positively directed,
intense and positive motivation, individual must be convinced mentally.
2. Complex and unpredictable:
Motivation is a complex process as different persons may have different needs to
satisfy. Managers need to understand their needs individually which is one of the
complex tasks. It is very difficult to understand the level of motivation as persons may
not reflect or show the actual motivation in their actions. Managers very hardly can
predict the impact of motivational techniques in the employees. So, motivation is
complex and unpredictable process.
3. Continuous process:
Motivation should be continuous as the employee cannot be motivated continuously
for the long time with same effort. As the cause of motivation is the unsatisfied need
of persons. If these needs will be fulfilled, managers must be able to create new and
higher level of needs in them. Same technique cannot be effective forever; therefore
managers need to search the new techniques for motivation. Thus, motivation is
never ending process.
4. Whole individual:
Motivation should be concerned with total parts of the body. This means employees
should be motivated physically and psychologically. Motivation in only one part of the
body cannot be effective.
5. Goal oriented:
Motivation is goal oriented process. Each motivational activities and efforts caused by
motivation are focused in order to attain goals. Such goals can be individual group
and organizational goals.
6. Behavior oriented:
Main motive of the motivation is to change the behavior of the person. Motivation
aims to energize and activate the passive efforts and will power of employees.
Motivational techniques convince employees that their unsatisfied needs can be
fulfilled if they change their inactive behavior to active and unfavorable behavior to
favorable.
7. Pervasiveness:
Motivation is pervasive function as it is essential to each individual working at any
level of responsibilities. This is equally important to the employees working in any
types of organization all over the world.
8. External influence:
Motivation can be influenced by external factors very easily. Environment can be
favorable or not to the person to attain the individual goals. Environment provides
the opportunities to the employees. It can further be influenced by ability of person,
self confident, types of motivational techniques expected rewards of motivation, etc.
9. Different classification:
Motivation can be classified or defined in different ways. It can be internal or external
on the basis of source of motivation as self induced or externally created. It can be
classified as positive or negative motivation on the basis of whether reward is used to
motivate or punishment. It can further be classified into neither financial nor non
financial motivation on the basis of motivational source whether it is monetary or
non monetary.

Importance of Motivation
Motivation is essential to every organization as it is the source of employee's effort.
Level of motivation of employees ensures the materialization of individual and
organizational goals. Importance of motivation can further be justified with following
points.
1. Increased productivity:
Motivation increases the productivity of the employees. It utilizes the ability,
potentiality and efficiency of the employees. Once the employees are motivated, they
do the work whole heartedly. And ultimately increases the productivity of the
employees and organization.
2. Develops positive attitude:
The motivated employees always develop positive attitude towards the organization
and the positivity brings good result. Therefore, to develop positive attitude towards
the organization, the organization must do the activities which can motivate the
employees. The demotivated employees develop negative attitude towards the
organization and they are not actively involved in realizing the organizational goal. So,
to develop positive attitude motivation is a must.
3. Utilizes the resources:
Motivation helps in utilizing the resources. The motivated employees never let the
resources go for wastage. They utilize the resources in optimum. They always work
hard for the betterment of the organizational development and try to give maximum
satisfaction from the minimum resources.
4. Stops absenteeism and turnover:
When the employees are motivated, they are much satisfied with the organization.
Because of this, there is low absenteeism and turnover. They stay in the organization
for the longer time. When organizations do not do any activities for motivation, then
there is high turnover and absenteeism. The high absenteeism and turnover create
problems which do not help in realizing the goal of an organization.
5. Creates willingness:
Motivation creates willingness amongst the employees to do the work honestly. It
creates willingness by giving different financial and non financial incentives. In the
hope of getting incentives the employees do the work effectively and efficiently. So,
to create willingness, employees must be motivated.
6. Materializes organizational goal:
Every organization get involved in formulating the plan and every plan has an
objective. To fulfill the objective or to realize the objective, employees must be
motivated. The motivated employees do work effectively in order to realize the goal.
7. Facilitates organizational change:
Change is a must for organizational and personal development. Through motivation
one can bring change in the resistivity to change behavior of the employees. This help
in accepting the organizational change. Therefore, motivation is important to accept
the organizational change.

Motivational Theories
Abraham Maslow created Maslow's Hierarchy of Needs. He was a professor of
psychology. Maslow created this pyramid after research and studies from his work.
This pyramid can be found in films, in some cases very clearly and in some others not
as clearly. It is used to help with the character developments throughout films, for
example Forrest Gump. It can also be understood that the people who would
associate more with the green and blue (top two levels) are more likely to be using
and linked to the media.
1. Physiological: - The first level of the pyramid is the physiological stage. This is the
level at the bottom of the pyramid so it can be classed as the base level of the
hierarchy. Within this level before anyone can develop and move onto higher up
levels they need to establish each of the different factors in the level. Some of these
are breathing, food, water, sleep, homeostasis and excretion. For this level all of the
factors come naturally to a person for example when a baby is born it automatically
knows and understands how to excrete. After these factors have mostly to all been
established there could also be feelings that can be leaning towards generating a
family after the people start feeling content at that level in the pyramid. Before
anyone can move onto higher levels they must have secured and established all
factors successfully.
2. Safety: - The second level of the pyramid is safety. This level includes factors such
as security of body so that they can start to feel confident within their self as well.
Resources, so that they can go out and collect items and products that can help
protect them so that they can survive. Morality, meaning people will understand the
meaning between right and wrong in all situations. Family, meaning that after
spending time with people overtime the feelings will start to generate of wanting a
family and to reproduce. Other factors can include health and property.
3. Love/ Belonging: - The third level in the hierarchy pyramid is Love/Belonging. The
factors within this layer include friendship which means the start of building up
relationships for companionship. Family, which can be the creation of youth as well
as finding the people they want to spend a lot of time with and be close with. And
finally sexual intimacy. The bottom three to four lower levels of the hierarchy
pyramid are known as deficiency needs as they are needs that are more basic and will
be a lot easier for larger numbers of people to access.
4. Esteem: - The fourth level of the pyramid is the esteem level. The factors of this
level are self esteem, confidence, achievement, respect for others and respect by
others. All of these factors are there to help with self value as they are all factors that
will take time to develop and strengthen with the time it takes for each one different
for each individual making it more of a personal achievement and challenge when
developing throughout the level. As the levels in the pyramid increase they become
more important, as well as becoming harder and taking longer to achieve a successful
result because they involve more difficult developments.
5. Self- actualization: - The top level of the Maslow's pyramid is the self-actualization
level. The different factors of the top level include morality, which is having an
example of self respect. Creativity, which is allowing self expression and value. Other
options include spontaneity, problem solving, and lack of prejudice and acceptance of
facts. The prejudice factor is included with in this top layer of the pyramid because it
can become proven that people who are more educated are more likely to be
associated with this layer allowing them to have a larger chance of not being or being
less prejudice because education provides people with a broader view on the world
and different specific situations meaning they can appear to be less prejudice.

Maslow’s hierarchy of needs Diagram

 HERZBERG'S THEORY OF MOTIVATORS
Herzberg (1959) constructed a two-dimensional paradigm of factors affecting
people's attitudes about work. He concluded that such factors as company policy,
supervision, interpersonal relations, working conditions, and salary are hygiene
factors rather than motivators. According to the theory, the absence of hygiene
factors can create job dissatisfaction, but their presence does not motivate or create
satisfaction.

Motivator factors - Simply put, these are factors that lead to satisfaction and
motivate employees to work harder. Examples might include enjoying your work,
feeling recognized and career progression.
2. Hygiene factors - These factors can lead to dissatisfaction and a lack of motivation
if they are absent. Examples include salary, company policies, benefits, relationships
with managers and co-workers.
 Organizational Cultural and Discipline

Meaning:The values & behaviour that contribute to the unique social &
psychologyical environment of an organization.The shared
beliefs,values & assumptions that distinguish the oeganization from
organization.

The first level, artifacts, are visible elements or signs that you can see with the naked
eye when you walk into an organization, i.e., logos, architecture, clothing, etc.

2. Espoused values, the second level, are the values and rules of conduct that are
adopted over time from every leader that comes into an organization; each leader
brings their own set of values and rules of conduct.
3. The third level, assumptions, are deeply embedded in an organization and are
experienced as unconscious behavior, therefore, are hard to recognize from within.
Functions of Organizational Culture
 It has a boundary defining role. It creates a distinction between one organization
and others.
It conveys sense of identity for organization members.
It facilitates the generation of commitment to something larger than individual
self interest.
It enhances social system stability and it is glue that helps hold the operation
together by providing appropriate standards for what employees should say and
do.
It serves as a sense making and control mechanism that guides and shapes the
attitude and behavior of employees.

Key Characteristics of an Organizational Culture:

• Innovation and risk taking. The degree to which employees are encouraged to be
innovative and take risks.
• Attention to detail. The degree to which employees are expected to exhibit
precision, analysis, and attention to detail.
• Outcome orientation. The degree to which management focuses on results or
outcomes rather than on technique and process.
• People orientation. The degree to which management decisions take into
consideration the effect of outcomes on people within the organization.
• Team orientation. The degree to which work activities are organized around
teams rather than individuals.
• Aggressiveness. The degree to which people are aggressive and competitive
rather than easygoing.
• Stability. The degree to which organizational activities emphasize maintaining the
status quo in contrast to growth.

Discipline in Workplace
Employee discipline is defined as the regulations or conditions that are imposed on
employees by management in order to either correct or prevent behaviors that are
detrimental to an organization.

Features
Discipline is self-control:
It refers to one's efforts at self-control to conform to organizational rules,
regulations and procedures which have been established to ensure the
successful attainment of organizational goals.
It is a negative approach:
It means discipline encourages people to undertake some activities, on the one
hand, and restrains them from undertaking others, on the other.
It is a punitive approach:
It means that discipline also imposes penalty or punishment if the rules and
regulations framed by the organization are not obeyed or ignored by the
 members. Punishment is imposed not to change past behavior but to prevent its
recurrence in future.

Purpose of discipline
> Enforce the standards & rules valued by management > Provide feedback to
employees & management
> Create a fair workplace for all by having a consistent disciplinary program that
everyone follows
> To modify behavior & not punish
> To close the gap between employee's unacceptable behavior & the required
standard of performance
> To give employees the opportunity to improve themselves & their behavior >
Supervisor's role is that of a coach, not to judge, jury & executioner.
OBJECTIVES OF DISCIPLINE:
• To obtain a willing acceptance of the rules, regulations and procedures of an
organization so that organizational goals may be attained.
• To impart an element of certainty despite several differences in informal
behaviors pattern and other related changes in an organization.
• To develop among the employees a spirit of tolerance and a desire to make
adjustments.
• To give and seek direction and responsibility
• To create an atmosphere of respect for the human personality and human
relations
• To increase the working efficiency and morale of the employees so that their
productivity is stepped up the cost of production improved.
TYPES OF DISCIPLINE
> Self controlled discipline : In self controlled discipline the employee brings her or
his behavior in to agreement with the organizations official behavior code, i.e. the
employee regulate their activities for the common good of the organization. As a
result the human beings are induced to work for a peak performance under self
controlled discipline.
> Enforced Discipline: Is a managerial action enforces employee compliance with
organization's rules and regulations, i.e. it is a common discipline imposed from the
top here the manager exercises his authority to compel the employees to behave in a
particular way

Training & Development

Training is a systematic process through which an organization's human resources
gain knowledge and develop skills by instruction and practical activities that result in
improved corporate performance.
Differences between Training, Education & Development
Training: - is short term, task oriented and targeted on achieving a change of attitude,
skills and knowledge in a specific area. It is usually job related.
Education: - is a lifetime investment. It tends to be initiated by a person in the area of
his/her interest
Development: - is a long term investment in human resources.

Importance of Training
Maintains qualified products / services
Achieves high service standards
Provides information for new comers
Refreshes memory of old employees
Achieves learning about new things; technology, products / service delivery
Reduces mistakes - minimizing costs
Opportunity for staff to feedback / suggest improvements
 Improves communication & relationships - better teamwork

Benefits of Training
 Increased job satisfaction and morale among employees
 Increased employee motivation
 Increased efficiencies in processes, resulting in financial gain
 Increased capacity to adopt new technologies and methods
 Increased innovation in strategies and products
 Reduced employee turnover
 Enhanced company image, e.g., conducting ethics training (not a good reason for
ethics training!)
 Risk management, e.g., training about sexual harassment, diversity training

Steps in Training & Development

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 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.

Methods of Training

A. On-the-job Training Methods:

1. Coaching
2. Mentoring
3. Job Rotation
4. Job Instruction Technology
5. Apprenticeship
6. Understudy

B. Off-the-Job Training Methods:

1. Lectures and Conferences
2. Vestibule Training
3. Simulation Exercises
4. Sensitivity Training
5. Transactional Training

Compensation Management
Compensation is a systematic approach to providing monetary & non monetary value
to employees in exchange for work performed.' Compensation may be defined as
money received in performance of work and many kinds of benefits that an
organization provides to their employees.
OBJECTIVES
 To recruit & retain qualified employees
 To increase or maintain morale
 To determine basic wage & salary
 To reward for job performance.

Components of Compensation
The components of a compensation system include
• Job Descriptions A critical component of both compensation and selection
systems, job descriptions define in writing the responsibilities, requirements,
functions, duties, location, environment, conditions, and other aspects of jobs.
Descriptions may be developed for jobs individually or for entire job families.
• Job Analysis The process of analyzing jobs from which job descriptions are
developed. Job analysis techniques include the use of interviews, questionnaires, and
observation.
• Job Evaluation A system for comparing jobs for the purpose of determining
appropriate compensation levels for individual jobs or job elements. There are four
main techniques: Ranking, Classification, Factor Comparison, and Point Method.
• Pay Structures Useful for standardizing compensation practices. Most pay
structures include several grades with each grade containing a minimum salary/wage
and either step increments or grade range. Step increments are common with union
positions where the pay for each job is pre-determined through collective bargaining.
• Salary Surveys Collections of salary and market data. May include average
salaries, inflation indicators, cost of living indicators, salary budget averages.
Companies may purchase results of surveys conducted by survey vendors or may
conduct their own salary surveys. When purchasing the results of salary surveys
conducted by other vendors, note that surveys may be conducted within a specific
industry or across industries as well as within one geographical region or across
different geographical regions. Know which industry or geographic location the salary
results pertain to before comparing the results to your company.
• Policies and Regulations
Types of Compensation
1.Direct compensation
 Base Pay' Bonus
 Long term incentives
 Perks or perquisites

2.Indirect compensation
 Insurance (health, eye)
 Leaves (sick, holiday/personal)
 Clothes
 Company parties
 Phones/laptop
 Retirement programs
NON MONETARY
 Enhance dignity & satisfaction from work performed
 Promote social relationship with co- workers
 Allocate sufficient resources to perform work assignments
 Offer supportive leadership & management
 Enhance physiological health, intellectual growth.

Factors Affecting Compensation

1) Productivity of workers: to get the best results from the employees and to increase
the productivity compensation has to be productivity based.
2) Ability to pay: it depends upon the employer's ability to pay wages to the workers.
This depends upon the profitability of the firm. If the firm is marginal and can't afford
to pay higher than the competitors then the employees will go to other firms while if
the company is successful then they can easily pay their employees as they wish.
3) Government: government has also fixed the rules for protecting the interest of the
employees. The organizations are liable to pay as per the government instructions.
Wages
cannot be fixed below the level prescribed by the government.
4) Labor union: labor union also helps in paying better wages to the workers. Higher
wages have to be paid by the firm to its workers under the pressure of the trade
unions.
5) Cost of living: wages depends upon the cost of living if it is high wages will also
hike.
6) Demand and supply of labor: it is one of the important factors affecting wages. If
the demand of labor is more they will be paid high wages otherwise vice versa. If the
supply of the employees is more than they will be paid less and vice versa.
7) Prevailing wage rate: wages also depends upon the prevailing wage rate as the
organizations have to pay accordingly to keep the employees with them.

Objectives of Compensation
  To recruit & retain qualified employees
 To increase or maintain morale
 To determine basic wage & salary
 To reward for job performance.

Components of Compensation
Importance of Compensation
Recruit & retain qualified employees
 Increase or maintain morale/ satisfaction
Reward & encourage perk performance
Achieve internal & external equity
Reduce turnover & encourage company loyalty
Impacts an employer's ability to attract & retain employees.
Ensure optimal levels of employee performance in meeting the organization's
strategic objectives

Job Analysis
Meaning of Job: - a collection or aggregation of tasks, duties and responsibilities
which as a whole, are regarded as a regular assignment to individual employees
Job Analysis: - It is a systematic analysis of each job for the purpose of collecting
information as to what the job holder does, under what circumstances it is performed
and what qualifications are required for doing the job.

Uses of Job Analysis

Human resource planning
Recruitment
Selection of personnel
Training and development
Organization audit
Job evaluation
Job design
Performance appraisal
Career planning
Safety and health
Components of Job Analysis
Job Specification : A written summary of tasks, duties and responsibilities of a job.
Job Description The minimum skills, education, and experience necessary for an
individual to perform a job.
Purpose of Job Description
 The main purpose of job description is to collect job-related data in order to
advertise for a particular job. It helps in attracting, targeting, recruiting and
selecting the right candidate for the right job.
 It is done to determine what needs to be delivered in a particular job. It clarifies
what employees are supposed to do if selected for that particular job opening.
 It gives recruiting staff a clear view what kind of candidate is required by a
particular department or division to perform a specific task or job.
 It also clarifies who will report to whom.

Purpose of Job Specification

 Described on the basis of job description, job specification helps candidates
analyze whether are eligible to apply for a particular job vacancy or not.
 It helps recruiting team of an organization understand what level of
qualifications, qualities and set of characteristics should be present in a
candidate to make him or her eligible for the job opening.
  Job Specification gives detailed information about any job including job
responsibilities, desired technical and physical skills, conversational ability and
much more.
 It helps in selecting the most appropriate candidate for a particular job.

Methods of Data Collection

Method of Job Analyis
Advantages Of Job Analysis
 Provides First Hand Job-Related Information: The job analysis process provides
with valuable job-related data that helps managers and job analyst the duties
and responsibilities of a particular job, risks and hazards involved in it, skills and
abilities required to perform the job and other related info.
 Helps in Creating Right Job-Employee Fit: This is one of the most crucial
management activities. Filling the right person in a right job vacancy is a test of
 skills, understanding and competencies of HR managers. Job Analysis helps them
understand what type of employee will be suitable to deliver a specific job
successfully.
 Helps in Establishing Effective Hiring Practices: Who is to be filled where and
when? Who to target and how for a specific job opening? Job analysis process
gives answers to all these questions and helps managers in creating, establishing
and maintaining effective hiring practices.
 Guides through Performance Evaluation and Appraisal Processes: Job Analysis
helps managers evaluating the performance of employees by comparing the
standard or desired output with delivered or actual output. On these bases, they
appraise their performances. The process helps in deciding whom to promote
and when. It also guides managers in understanding the skill gaps so that right
person can be fit at that particular place in order to get desired output.
 Helps in Analyzing Training & Development Needs: The process of job analysis
gives answer to following questions:
 Who to impart training

 When to impart training

 What should be the content of training

  What should be the type of training: behavioral or technical
 Who will conduct training

 Helps in Deciding Compensation Package for a Specific Job: A genuine and

unbiased process of job analysis helps managers in determining the appropriate
compensation package and benefits and allowances for a particular job. This is
done on the basis of responsibilities and hazards involved in a job.
Disadvantages of Job Analysis
 Time Consuming: The biggest disadvantage of Job Analysis process is that it is
very time consuming. It is a major limitation especially when jobs change
frequently.
 Involves Personal Biasness: If the observer or job analyst is an employee of the
same organization, the process may involve his or her personal likes and dislikes.
This is a major hindrance in collecting genuine and accurate data.
 Source of Data is Extremely Small: Because of small sample size, the source of
collecting data is extremely small. Therefore, information collected from few
individuals needs to be standardized.
 Involves Lots of Human Efforts: The process involves lots of human efforts. As
every job carries different information and there is no set pattern, customized
information is to be collected for different jobs. The process needs to be
conducted separately for collecting and recording job-related data.
 Job Analyst May Not Possess Appropriate Skills: If job analyst is not aware of
the objective of job analysis process or does not possess appropriate skills to
conduct the process, it is a sheer wastage of company’s resources. He or she
needs to be trained in order to get authentic data.
 Mental Abilities Can not be Directly Observed: Last but not the least, mental
abilities such as intellect, emotional characteristics, knowledge, aptitude, psychic
and endurance are intangible things that can not be observed or measured
directly. People act differently in different situations. Therefore, general
standards can not be set for mental abilities.