Human resource management

According to Edwin B Filippo “HRM is the planning, organizing, directing And

controlling of the procurement, development, compensation, Integration,
maintenance and reproduction of human resources to the End that individual,
organizational and social objectives are Accomplished”
Features of HRM
1. Management function 6.Development of human resource
2. Action oriented 7.Pervasive in nature
3. Comprehensive function 8.Achievement of objectives
4. Individual consideration 9. Human behaviour
5. Continuous function 10. New discipline
Scope of HRM
1. Human resource planning 7.Employees remuneration
2. Job analysis and design 8.Motivation
3. Recruitment and selection. 9. Communication
4. Placement and orientation 10. Human welfare
5. Training and development . 11. Industrial relations
6. Performance appraisal and Job evaluation
Objectives of HRM
• General objectives
• Optimum individual development.
• Creation of good human relationship.
• Moulding human resource to achieve maximum production.
• Specific objectives
• Selection of right individual to right job.
• Provision for training facilities.
• Provision for orientation to new employees.
• Provision for better working condition.
• Provision for fair wages, salary and other benefits.
• Provision for retirement benefits.
• Maintain good relation with trade union.
Functions of HRM

1. Managerial functions. 8. Procurement

2. Planning 9. Training and development
3. Organizing 10. Compensation
4. Directing 11. Integration
5. Coordinating 12. Maintenance
6. Controlling 13. Welfare activities
7. Operative functions 14. Personal records

Need and Importance of HRM

• It provides manpower.
• It improves employees innovation and creativity.
• It ensure better standard of living to employees.
• It generate employment opportunities.
• It facilitate organizational success.
• It facilitate growth of entrepreneurship

Evolution of HRM

• Period of industrial revolution

• Convert agricultural economy to industrial based one.
• Emergence of personal management.
• A department was set up for workers.
• Labour union (1970)
• History of modern personal mgt began with the name of Robert Owen.
• Post industrial revolution
• Scientific management
• Industrial psychology
• Hawthorne studies
• Human relation movement

Approaches to HRM

1. Behavioural approach :- According to this approach employees are human beings and they
have motivations and aspirations. The behaviour of employees varies with working
condition, job description, amenities of work etc.
2. Scientific management approach :- F.W Tylor suggested this approaches to work and
employees. This approach makes HRM as a systematic function based on scientific studies.
3. System approach :- According to this approach, HRM is considered as a major system and
which consist of number of subsystem. Every function under HRM is considered as
subsystem like, HR planning, recruitment, selection, placement, induction etc.
4. Human resource approach :- This approach assumes people as resources or investments.
These resources are to be developed, maintained and carefully utilized for the mutual
benefits of employees and management.
Personal management
According to French Wendell “Personal management is the Recruitment,
selection, development, utilization of an accommodation To human resources
by organization”
Characteristics of personal management
1. Management of human resources 6.Goal oriented
2. Concerned with employees 7. Formulation of personal policies
3. Continuous in nature
4. Ensure social, economic and individual satisfaction
5. Creation of congenial atmosphere
Personal management V/S Human resource management
Personal management Human resource management
Employee oriented. Resource oriented.
Speed of decision making is low. High speed in decision making.
PM precedes HRM. It is emerged late 1970s.
Reactive to change in organization. Proactive to change in organization.
Short term perspective Long term perspective.
Traditional approach Modern approach.
Routine function Strategic function.

Strategic human resource management (SHRM)

It is the branch of HRM. It is the process of linking the human resource
Function with the strategic objectives of the organisation in order to Improve
performance.
Strategic HRM V/S Traditional HRM
Strategic HRM Traditional HRM
It is concerned with all employees and It is concerned with operational and
managers. clerical employees
It is concerned with strategic objectives. It is concerned with operational issues.
It involved in making ongoing strategic It makes operational decisions only.
decisions.
It participate in formulating overall strategic It is involved in operational planning.
plan.
It has high status and authority It has medium status and authority.
It is fully integrated with other It is not fully integrated with other
organizational functions. organizational functions.
Electronic human resource management (E-HRM)

E-HRM is the integration of all human resource system and activities Using the web based
technologies.

Features of E-HRM

• It facilitate handling of large volume of data.

• Reporting and analyzing of data are done easily and quickly.
• It facilitate standardization and automation of HR process.
• It is a safe and secure system of maintaining employee information.
• It replaces conventional paper and file system of HRM.
• It offer transparent services to employees.

Advantages of E-HRM

• It reduce cost of administration of HR department.

• It simplify the operations of HR department.
• It create more satisfied employees.
• It increases corporate image.
• It promotes better employer-employee relationship.
• It offer transparent services to employees.

Disadvantages of E-HRM

• It require huge implantation and maintenance cost.

• It is not much affordable to small organisations.
• It is difficult to get employees cooperation and support.
• There are more chances of errors and omissions.
• There is a chance of losing security and privacy informations.
• It reduces human relations in the organizations.

Types of E-HRM

1. Operational E-HRM :-It is concerned with implementation of electronic human resource

Management in the operational or administrative areas.

Activities of operational E-HRM

1. E-recruitment. 4. E-performance management

2. E-selection 5. E- compensation
3. E-employee profile 6. E-training
2. Relational E-HRM :- It is designed to manage and sustain relationship with employees by
Improving HR services differently.

Objectives of relational E-HRM

• It build better employer- employee relationship and trust.

• It enable employee empowerment and recognition.
• It provides accurate and comprehensive employee data.
3. Transformational E-HRM :- It is concerned with the use of information technology in areas
like Employee development, employee motivation, knowledge Management, employee
reorientation etc.
Performance appraisal
It is a systematic and objective evaluation of behaviour of employees to Measure the
quantitative and qualitative aspects of work done.

Need and importance of performance appraisal

• Development and training needs of employees.

• Helps to improve performance.
• Helps to take personnel decisions
• Creation of competitive spirit.
• Helps to develop confidence among employees.
• Identify strength and weakness.
• Aids to personnel research.
• Inspiration
• Feedback

Objectives of performance appraisal

• To ascertain the performance of employees.

• To identify weakness of employees.
• To identify needs for training.
• To collect information related to employees.
• To determine salary increment or promotion.
• To reward the employees with better remuneration.

Performance appraisal process

1. Determining objectives 5. Measuring performance
2. Establishing performance standard or criteria 6. Discussion
3. Communicating standards 7. Corrective action
4. Comparing the actual performance with standard
Methods of performance appraisal
Traditional methods Modern methods
1. Ranking method 1. Assessment centre
2. Paired comparison method 2. Management by objectives (MBO)
3. Grading method. 3. Behavioural anchored rating scales (BARS)
4. Graphic rating scale 4. Human resource accounting methods
5. Check list method
6. Forced distribution method
Problems/ Limitations of performance appraisal
1. Inconsistent ratings 3. Halo effects
2. Psychological barriers 4. Horn effect
MBO (Management by Objectives)
It is a managerial system that aims to improve organizational performance by clearly
defining the objectives.

Features of MBO
1. Focused on goals and achievement. 4. Periodic review of performance.
2. It gives emphasis on effective performance. 5. Universally applicable.
3. It provides guidelines for appropriate systems, procedure etc…

Benefits of MBO
1. Systematic evaluation of the performance. 6. It envisages planning
2. It provides definite performance standards. 7. It encourages motivation.
3. Delegation of authority is done. 8. It is a tool for organisation control.
4. Periodic review of performance.
5. Subordinates participate and cooperate in setting goals.
Weakness or Limitations of MBO
1. It is a time-consuming process. . 4. It creates frustration among managers.
2. It is costly. 5. More emphasis on short term objectives
3. Difficult in setting objectives.
Process of MBO
1. Setting of objectives. 3. Periodic review.
2. Development of action plans. 4. Performance appraisal

Halo effects
It is a tendency for positive impressions of a person, company, brand or Product in one area
to positively influence ones opinion or feelings in Other areas.
Job evaluation

Job evaluation is a systematic and orderly process of measuring the Worth of a job in
relation to other jobs.
Methods of job evaluation

Qualitative method Quantitative method

Ranking or job comparison method Point system
Job grading method Factor comparison
Career planning

It means planning done by a person in terms of making a career choice, Advancing in that career and
making a shift from the present career.

Features of career planning

• It is a process of developing human resources.

• It is an important part of human resource planning.
• It is a continuous process.
• It integrate organizational and personal needs.
• It is an individual responsibility.

Objectives of career planning

• To attract talented employees in the organization.

• To find out career suitable to the person.
• To choose right person in the right job.
• To increase efficiency and productity of organisation.
• To maintain a stable work force.
• To help the organization in the succession planning.
• To achieve improvement in moral and motivation of employees.

Methods of career planning

1. Discussion with experts 4. Workshops

2. Career planning materials 5. Personal development plans
3. Performance appraisal system

Advantages of career planning

1. It enable organisation to attract better talents. 7. It builds employee loyalty.

2. It motivate employees to work hard. 8. It reduces employees turnover.
3. It helps individual growth and development
4. It improves employee morale and motivation
5. It attain greater productivity through better performance
6. It helps the organization in succession planning.

Career development

It is a formal, organized and planned effort by an organization to Achieve a balance between

individual career needs and organizational Work force requirements.

Advantages/ Uses of career development

1. It helps the organisation in finding right talents. 6. It ensures job security

2. It helps the employees to make self-assessment. 7. It enhance quality of work life.
3. It achieve the personal and organizational goal. 8. It ensure maximum job satisfaction.
4. It make the employee more flexible to choose different jobs.
5. it makes the employee more skilled and empowered.
Job analysis
Job analysis is the process of studying and collecting information Relating to the operation
and responsibilities of a specific job.

Job analysis process

1. Collection of actual information’s. 4. Report preparation
2. Preparation of job description. 5. Approval of the report
3. Preparation of job specification.

Methods used in job analysis

1. Questionnaire 5. Participation
2. Cheque list 6. Technical conference
3. Interview 7. Dairy
4. Observation 8. Records
Job description
It is a written statement defining the purpose and scope of a job. It Describe title, location
duties and responsibilities of the job.
Content of job description

1. Name of the job 5. Degree of supervision

2. Summary of the job 6. Relation with other jobs
3. Job location 7. Physical condition
4. Duties and responsibilities 8. Details of materials, equipment’s and tools

Job specification
Job specification is a statement of minimum acceptable human Qualities necessary to
perform a job properly.
Job design

Job design is the process of deciding on the contents of the job in terms Of duties and
responsibilities.
Methods of job design

• Job rotations :- It simply means shifting an employee from one job to another
without Any change in the nature of job.
• Job simplifications :- It is the process of removing tasks from existing roles to make
them More focused.
• Job enlargement :- It means more tasks and duties are added in a job for widening
the Scope of the job.
• Job enrichment :- It is a process that is characterized by adding dimensions to
existing Jobs to make them more motivating.
Human resource planning (HRP)
It is a systematic planning to achieve optimum use of an organizations Human resource. It is also
called manpower planning.

Need and importance of HRP

1. Expansion of plant 7. Reduction in labour cost

2. Retirement vacancies 8. Uninterrupted production
3. Reduction in labour turnover 9. Introduction of fresh blood in the organisation
4. Determination of shortage or surplus of staffs
5. Effective employer-employee relationship

Manpower forecasting

Estimating the future quantity and quality of the people required to a Specific job is called
manpower forecasting.

Recruitment

It is the process of finding apt candidates and applies for jobs in the Organisation.

Sources of recruitment

Internal sources External Sources

Transfer Advertisement
Promotion Campus recruitment
Demotion Employment exchange
Present employees Labour contractors
Labour union
Gate hiring
Merits and demerits of internal source of recruitment

Merits of internal recruitment Demerits of internal recruitment

Economical Limited opinions
Save time Lack of originality
Motivates employees Reduces productivity
Self-development
Accurate source
Merits and demerits of external source of recruitment

Merits of external recruitment Demerits of external recruitment

Wider options Expensive
Fresh talent Time consuming
Organizational growth Lack of cooperation
Fair and impartial employees Employee dissatisfaction

Modern trends and techniques in recruitment

1. Knowledge based recruitment 3. Outsourcing

2. Online recruitment 4. Poaching
Selection

Human resource selection is the process of preferring Qualified individuals who are available to fill
Positions in an organization. Selection involves both Picks up the fits and rejects the unfits.

Selection Procedure

1. Application Pool: Application pool built-up through Recruitment process is the base for
selection process.
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.
3. Application Blank or Application Form: AnApplication blank is a traditional widely accepted
Device for getting information from a prospective Applicant which will enable the
management to make A proper selection. Information is generally taken on
4. Selection Tests: Many organisations 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.
A. Aptitude Tests B. Personality Tests: C. Interest Tests D. Performance Tests
E. Intelligence Tests: F. Knowledge Tests G. Achievement Tests: H. Projective Tests
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
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.
7. Physical Examination: After the selection decision And before the job offer is made, the
candidate is Required to undergo physical fitness test
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.
9. Final Employment Decision: After a Candidate is finally selected, the human resource
Department recommends his name for employment.
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.

Orientation (Induction)

It is the process by which new employees are Introduced to the practices, policies and purposes of
The organisation. Induction follows placement and Consists of the task of orienting or introducing
the New employee to the company, its policy and its Position in the economy

Objectives of Induction

1) Introduce the new employee and the organisation To each other.

2) Create interest in his job and the Company
3) Provide basic information about Working arrangements
4) Make the new employee Feel ‘at home’ in the new environment
5) Indicate the Standards of performance and behaviour expected From him
6) Inform him about the training facilities
Induction Process

1. Reporting for duty before the concerned head of The department at a certain place.
2. The head of the Department welcomes the new employee.
3. Introduction to the organizational head/ branch head By the head of the department
4. Organizational Head/ Branch head introduces him to the important Employees
5. Supervisor concerned introduces him To his co-workers in that section.
6. Providing Information about the duties, responsibilities, rights, Facilities, welfare measures
,etc.
7. Supervisor clarifies The doubts of the new employee about the work.

Placement Placement is a process of assigning a specific job to each Of the selected candidates. It
involves assigning a specific Rank and responsibility to an individual.

Significance of placement

1. It improves employee medicine. 4. It helps in reducing accident rates.

2. It helps in reducing Employee turnover. 5. It helps in reducing Absenteeism
3. It avoids misfit between the candidate and the job.

TRAINING Training is an organised activity for increasing the Knowledge and skills of people for a
definite purpose. It Involves systematic procedures for transferring Technical know-how to the
employees so as to increase Their knowledge and skills for doing specific jobs with Proficiency.

Objectives of Training

1. To impart to new entrants the basic knowledge and Skill they need for an intelligent
performance of definite Tasks;
2. To assist employees to function more Effectively in their present positions by exposing Them
to the latest concepts, information and techniques And developing the skills, they will need
in their Particular fields;
3. To build up a second line of Competent officers and prepare them to occupy more
Responsible positions;

Need and Importance of Training

1. Increasing Productivity: Instruction can help Employees increase their level of performance
on their Present job assignment.
2. Improving Quality: Better Informed workers are less likely to make operational Mistakes.
3. Helping a Company Fulfil its Future Personnel Needs: Organisations that have a good
Internal educational programme will have to make less Drastic manpower changes and
adjustments in the event Of sudden personnel alternations.
4. Improving Organisational Climate: An endless chain of positive Reactions results from a
well-planned training Programme.
5. Improving Health and Safety: Proper Training can help prevent industrial accidents. A safer
Work environment leads, to more stable mental Attitudes on the part of employees.
6. Obsolescence Prevention: Training and development programmes Foster the initiative and
creativity of employees and help To prevent manpower obsolescence, which may be due To
age, temperament or motivation, or the inability of a Person to adapt himself to
technological changes.
7. Personal Growth: Employees on a personal basis gain Individually from their exposure to
educational Experiences.
Methods of training
On-the-Job Training Methods:
This type of training is imparted on the job and at the Work place where the employee is
expected to perform His duties.
1. On Specific Job: On the job training methods is used to Provide training for a specific
job such as electrical, Motor mechanic, pluming etc.
2. Job Rotation: The Major objective of job rotation training is the Broadening of the
background of trainee in the Organisation
3. Special Projects: This is a very flexible Training device. The trainee may be asked to
perform Special assignment; thereby he learns the work Procedure.
4. Apprenticeship: Under this method, the Trainee is placed under a qualified
supervisor or Instructor for a long period of time depending upon the Job and skill
required
5. Vestibule Training: Under this Method, actual work conditions are created in a class
Room or a workshop
6. Multiple Management: Multiple Management emphasizes the use of committees to
Increase the flow of ideas from less experience managers And to train them for
positions of greater responsibility.
Off-the-job Training Methods:
1. Special Courses and Lectures: Lecturing is the most Traditional form of formal
training method Special Courses and lectures can be established by business
Organizations in numerous ways as a part of their Development programmes.
2. Conferences: This is also An old method, but still a favorite training method. In Order
to escape the limitations of straight lecturing Many organizations have adopted
guided, discussion Type of conferences in their training programmes
3. Case Studies: This technique, which has been developed, Popularized by the Harvard
Business School, U.S.A is one Of the most common forms of training. A case is a
written Account of a trained reporter of analyst seeking to Describe an actual
situation.
4. Brainstorming : This is The method of stimulating trainees to creative Thinking This
approach developed by Alex Osborn seeks To reduce inhibiting forces by providing
for a maximum Of group participation and a minimum of criticism.
5. Laboratory Training: Laboratory training adds to Conventional training by providing
situations in which The trains themselves experience through their own Interaction
some of the conditions they are talking About. In this way, they more or less
experiment on Themselves.
COMPENSATION MANAGEMENT

Compensation management refers to the administration of employee compensation. It consists

formulation and implementation of policies and programmes related to wages, salary and other
employees’ compensation.

Employee compensation

Compensation is a comprehensive term which includes wages, salaries, all other allowances and
benefits. We can classify employees’ compensation in to two categories

• Base or primary compensation It refers to basic pay in the form of wages and salaries. It is a
fixed and non-incentive payment on the basis of time spent on the job.
• Supplementary compensation Many organizations use supplementary
compensation in addition to base compensation for retaining employees. it involves fringe
benefits and incentives.

Compensation planning

Compensation planning process covers how much of the organization’s resources will go into wages
and details of wage rate for each employees.

Objectives of compensation management

1. To attract competent employees. 7. New and desired behaviour

2. To retain the services of the desirable employees. 8. Creation of public image
3. To establish just and equitable remuneration. 9. Comply with legal rules
4. To improve productivity 10. Lower cost of production
5. Helps to control costs. 11. To guarantee minimum wages
6. To maintain good relationship. 12. Easy of operation

Essential features of a good compensation Management/ salary structure

• Internal equity It underlines similar pay for similar work. Wage differentials should be
maintained Between jobs according to the worth of the Jobs.
• External equity External equity implies that, pay given for a Job should be equal to pay for a
similar job in Other organization.
• Maintain real wage Organization should pay dearness allowance To compensate the
increase in prices. So that It will be able to maintain the real wages.
• Flexibility The wage and salary structure should be Flexible enough to cope with the
changing Economic and social environment.
• Link with productivity Salary or wage should be according to the Productivity of the
organization.
• Motivation A good salary structure should motivate Employees perform the work
• Stability The system of salary and wages should be Permanent and stable
• Simplicity Salary structure should be easy to Understandable to all
• Result oriented The wages should establish a direct Relationship between effort and
reward.
Factors influencing wage system

• Ability to pay The ability to pay depends upon the Financial position and profitability
of the Organizations.
• Demand and supply If the demand of labourers are high, the Wage rate will be high.
On the other hand, if The supply is high and demand for labourers Is less, the wage
rate will be low.
• Cost of living An employer should give adequate Importance to cost of living while
Determining wage rate.
• Wage paid by other firms Wages and salaries paid by other firms for Similar position
should be considered while Fixing wage rate.
• Labour productivity If productivity is higher, the employer will Pay high wages
compared to other firms.
• Bargaining power Bargaining power of employees will affect The wage rate.
• Govt. Policy Minimum wage will have to be paid According to the minimum wage act
1948.
• Job requirements If a job requires higher skill, greater Responsibility and risks, the
workers placed On that job will get higher wages.
Merits of time wage Demerits

1. Simple to understand 1. No distinction between efficient &

. inefficient workers
2. Helps to maintain quality of product. 2. good relation with management
3. Job safety. 3. Difficult to measure labour cost
4. Trade union accept this
5. Protect workers from fatigue & over work
6. good relation with management
7. Save machines from overload
8. Guarantee fixed wages
Methods of Wage Systems

1. Time Wage system

2. Piece wage system
3. Incentive wage system

1.Time Wage System

This is the oldest method of wage payment. Under this system, worker is paid on the basis time
spent by Him on the job.

Merits

1. Its simple to understand. So the workers can easily calculate their remuneration.
2. It protects workers from overwork and fatigue.
3. It helps to save machines from over work and damage
4. This system guarantees regular and fixed wages to employees
Demerits

1. Guaranteed remuneration makes workers indifferent and unworried

2. It is difficult to measures labour cost
3. This system does not make any distinction between efficient and inefficient workers

2 Piece Wage System

Under this system wages are paid to the employees on the basis of goods they produce at a given
time. In Other words, wages are paid on the basis of his output.

Merits

1. It is simple to understand and easy to calculate

2. Cost per unit can easily be calculated
3. Management can distinguish between efficient and inefficient workers

Demerits

1. New workers are not able to produce more. So they will not get reasonable wages
2. Minimum wages are not guaranteed under this method
3. In order to produce more, workers will handle machine and materials carelessly

The process of Wage Determination

1. Job analysis. 5. Developing wage structure

2. Job evaluation. 6. Method of wage payment
3. Wage survey. 7. Wage administration rule
4. Pricing job structure 8. Evaluation of wage and salary administration

Incentive Wages

According to National commission on labour, “wage incentives are extra financial motivation, they
are Designed to stimulate human effort by rewarding the person, over and above the time rated
remuneration, For improvement in the present or targeted results.” Incentive compensation is called
payment by result.

Importance or advantage of Incentive Schemes

1. It provides an opportunity for hardworking and ambitious workers to earn more.

2. It motivates the worker to work more.
3. Helps to improve discipline and industrial relations with in the org
4. It helps to improve productivity
5. Helps to create a team spirit among employees
6. It facilitates better utilization of equipment, reduced scrap, and reduced lost time

Limitation of Incentive Schemes

1. When production is disrupted due to management fault, the workers will insist to get
Compensation
2. There is a possibility of reducing quality of products
3. Jealously and conflicts may arise among employees
4. Workers tend to treat their highest earnings as normal, and they insist to get as minimum
wages. It Will increase labour cost.
Perquisites of Sound Incentive Plan or Schemes

1. Co-operation of workers:- the co-operation of workers is essential to implement the scheme

Successfully.
2. Wide coverage:- indirect workers such as supervisors, foreman, helpers, crane operators,
and Canteen staff should also be covered by incentive schemes.
3. Careful planning:- an incentive scheme should be carefully planned. If it is not carefully
prepared, The objective of introducing incentive scheme becomes a failure
4. Guarantee minimum wages:- the wage incentive should guarantee minimum wages to all
Employees. It will ensure a sense of security among employees
5. Sufficient amount of incentives:- the incentive paid must motivate the employees to
perform well
6. Timely payment:- incentive should be paid as and when the workers complete his job
7. Review rates:- the rates should be periodically reviewed
8. Follow up:- periodical review of incentive scheme should be done. Proper steps should be
taken to Rectify the mistakes in the incentive schemes

Types of Incentive Schemes

A)Individual or Personal Incentive Plans

Under the individual incentive plans, the earnings of an individual worker are based only on his
Performance. It may be classified in to two; Time based and Production based.

1. Time Based Compensation Schemes:- In time based plans, workers are rewarded for better
performance on the basis of time saved in completing a minimum standard of work with in a
standard time. Time based system includes:
a. Halsey plan
b. Rowan Plan
c. Emerson Plan
d. Bedeaux Plan
2. Production Based Incentives :-
a. Taylor’s Differential Piece Rate System
b. Gantt’s Task System
c. Merrick’s multiple Piece Rate Plans

B)Group Incentive System

1.Priestman Plan :- If production exceeds the standard, the bonus is paid. It will create a team
spirit among workers. The main Demerit of this method is that it does not offer incentive to
individual workers.

2.Sealon Plan:- This system was introduced by Joseph Sealon of USA. This plan provides one
percent participatory bonus For every one percent increase in productivity.
3.Co-partnership:- Under this scheme, the employees are offered shares of the enterprise at
reduced rates. Due to that, as a Shareholder they are eligible to share profits. Here the
workers feel that they are the part of the org.

4.Profit Sharing:- Under this plan, a certain percentage of profits are distributed at fixed
intervals, usually annually, or bi-Annually in some definite ratios to all employees.
FRINGE BENEFITS

It refers to various extra benefits provided by employers to their employees, in addition to wages
and Salaries paid to them.

Characteristics of Fringe Benefits

1) It is given in addition to regular wages or salaries

2) It is given to workers to stimulate them to work hard
3) The monetary value of the benefits can be ascertained
4) It helps to increase standard of living of the people

Objectives of Fringe Benefits

a) To retain and recruit good and efficient employees

b) To satisfy the demand of the trade unions
c) To improve motivation
d) To attain good industrial relations
e) To meet statutory requirement

Types of Fringe Benefits

1. Retirement benefits such as pension, gratuity, etc.

2. Quarters, subsidized lunch, transport, etc
3. Health and safety benefit
4. Payment for sick leave, maternity leave, vacation pay, etc.
5. Educational and recreation facilities
6. Interest free loans

Perquisites Perks or Perquisites maybe defined as any casual emoluments, fee, and profit, attached
to an office or Position in addition to salary or wages. In simple language, it is the benefits or
amenities provided in kind By the employer free of cost or at a concessional rate.

Grievance Keith Davis defines it as “any real or imagined feeling of Personal injustice which an
employee has concerning his Employment relationship”.

Essentials of Good Grievance Handling Procedure

1. Procedural Fairness: The process of grievance Handling should be fair and impartial. The
grievant Should be informed about the process and the Implications of making a formal
complaint before Proceeding.
2. Substantive Fairness: The grievance Handler should not assume guilt. They should
determine That the complaint is substantiated only after hearing From both sides, checking
other relevant evidences and Taking into account any mitigating circumstances.
3. Confidentiality: A grievant should be able to raise a Complaint and get advice in confidence.
4. Timeliness: Delays in any stage of the grievance handling procedure Can result in a denial of
procedural fairness.
5. Record Keeping: It is also necessary to keep records about Details of allegations, responses
and actions.
6. Transparency: There must be sufficient scope for Transparency in the effective
implementation of policies And procedures.
7. Openness, Honesty and Fair dealing: Openness, honesty, fair and accurate reporting should
Be ensured.
Discipline

According to Dr. Spiegel, “Discipline is the force that Prompts an individual or a group to observe the
rules, Regulations and procedures which are deemed to be Necessary to the attainment of an
objective; it is force or Fear of force which restrain an individual or a group From doing things which
are deemed to be destructive of Group objectives. It is also the exercise of restraint or the
Enforcement of penalties for the violation of group Regulations.”

Objectives of Discipline

• For the achievement of organizational goals it tries to Earn the willing approval of
employees.
• To introduce The component of uniformity and assurance despite the Numerous
organization.
• For improving the quality of Production by enhancing the morale and working Efficiency of
the employees.
• To generate respect for Human relations in the organization.
• To confer and Seek direction and responsibility

Procedure for Disciplinary Action

a. Ascertaining the Statement of the Problem – First Look into the violation of rule and the
number of Employees involved in the matter. Then ascertain the Gravity of the violation and
the conditions under which it Occurred.
b. Searching for the Underlying Facts – This Calls for thorough examination of the case
together the Relevant facts.
c. Deciding upon the Type of Penalty –The penalty or punishment should be such which
Discourages future reoccurrence of the offence or Violation. But it should always relate to
the gravity of the Offence.
d. Application of Penalty – The selected penalty May be imposed on the wrong doers and if
the offence is Not of a serious nature then it may be disposed off Quickly.
e. Follow-up on Disciplinary Action – Vigilant Supervision of the person against whom a
disciplinary Action is taken should be done.

Training
Training means learning skills
and knowledge for doing a
particular job. It increases job
skills
The term ‘training’ is generally
used to denote imparting
specific skills among operative
workers and employees.
Training is concerned with
maintaining and improving
current job performance.
Thus, it has a short-term
perspective.
Training is job-centred in
nature
Development
Development means the
growth of an employee in all
respects. It shapes attitudes
The term ‘development’ is
associated with the overall
growth of the executives
Executive development seeks
to develop competence and
skills for future performance.
Thus, it has a long-term
perspective
Development is career-centred
in nature.