Personnel Management Ii Sem

INFINITY MANAGEMENT & ENGINEERING COLLEGE SAGAR
INFINITY
MANAGEMENT & ENGINEERING COLLEGE, SAGAR
PERSONNEL MANAGEMENT
Subject Code: 202
Prepared by: Mrs. Sneha Sahu
Department of Management Studies

SYLLABUS
M.B.A. – Second Semester

Paper No.: 202
Title: Personnel Management
UNIT - I Nature of Personnel Management, Qualities of a Personnel Manager, Functions of

Personnel Management, Human Resource Planning : Process, Short Range and Long Range
Analysis, Job Analysis, Job Evaluation.
UNIT – II Recruitment & Selection Process, Psychological Testing, Interviews, Placement &
Induction, Promotion, Demotions, Transfers, Separation, Absenteeism & Turnover. Employee
Training, Employee Discharge.
UNIT – III Performance appraisal, traditional methods & modern methods of appraisal, Wages
& Welfare Administration.
UNIT – IV Industrial Disputes Settlement, Trade Unionism, Unfair Labour Practices, Grievance
Handling Management, Discipline Management.

LECTURE PLAN
Lecture 1 - Nature of Personnel Management, Meaning and Concept

Lecture 2 - Qualities of a Personnel Manager, Functions of Personnel Management, Managerial
and Operative Functions.
Lecture. 3 - Human Resource Planning : Meaning and Process
Lecture 4- Short Range and Long Range Analysis,
Lecture 5 - Job Analysis, Job Description and Job Specification
Lecture 6 - Job Evaluation.
Lecture 7- Job Evaluation
Lecture 8 - Recruitment and it's process
Lecture 9 - Selection and its Process
Lecture 10 - Selection and its Process
Lecture 11 - Psychological Testing,
Lecture 12 - Interviews and the Types
Lecture 13 - Placement& Induction,
Lecture 14 - Promotion, Demotions, Transfers
Lecture 15 - Separation, Absenteeism & Turnover.
Lecture 16-Employee Training and methods
Lecture 17 - Off the job Training methods
Lecture 18 Employee Discharge.
Lecture 19- Performance appraisal Meaning Traditional methods
Lecture 20 -Traditional methods
Lecture 21- Modern methods of appraisal,
Lecture 22 -Modern methods of appraisal,
Lecture 23- Wages Meaning and concept and Forms
Lecture 24- Determination of Wages
Lecture 25- Administration of wages

Lecture 26- Industrial Disputes Settlement,: Concept of Industrial disputes and Forms
Lecture 27- Machinery of Industrial disputes Settlement: Conciliation
Lecture 28- Machinery of Industrial disputes Settlement: Board of Enquiry, Arbitration
Lecture 28- Machinery of Industrial disputes Settlement: Adjudication and Composition
Lecture 30- Trade Unionism,
Lecture 31 -Trade Unionism,
Lecture 32 -Unfair Labour Practices,
Lecture 33 -Unfair Labour Practices
Lecture 34 -Grievance Handling Management, Dissatisfaction, Complaint and Grievances
Lecture 35- Open door and Step ladder policies
Lecture 36- Discipline Management. : Positive and Negative

UNIT -1
Personnel Management is the management of personnel (labour) at work.

▪ It is the science of Planning, organizating and controlling the various operative functions of
procuring (obtain), developing, maintaining, and utilizing the labor force (including the
employees at all levels and types of management like – low middle and top) for the purpose
of contributing a lot towards the accomplishment of the major goal of the organization.
▪ Principles of personnel management are the Guide rules for the personnel executive.
▪ Principle of maximum individual development
▪ Principle of scientific selection – A right man should be selected for the right job.
▪ Principle of high moral – such as introduction of an ideal wage system, provision of bonus,
gratuity, better working conditions etc.
▪ Principle of effective communication – massage should be clear.
▪ Principle of dignity of Labour
▪ Principle of team spirit – personnel manager should cooperate
▪ Principle of fair reward
▪ Principle of effective utilization human resources
Difference between PM & HRM

▪ Human resources is described as much broader in scope than Personnel Management
▪ Personnel Management is more administrative in nature, dealing with payroll, complying

with employment law, and handling related tasks. On the other hand HRM is responsible
for managing a workforce as one of the primary resources that contributes to the success
of an organization.
▪ QUALITIES OF PERSONNEL MANAGER
▪ Creative Thinking
▪ Problem solving techniques
▪ Faith in humanity
▪ Capacity for leadership

▪ Personal integrity - the quality of being honest and having strong moral principles
▪ A friendly
▪ Initiative and decision making ability
▪ An ability to generate trust among his colleagues
▪ Ready to co-operate
▪ Personal Dignity
▪ Professional knowledge
▪ Foresightedness
Function of personnel Management
1. Managerial Function – Under managerial Function we include the primary functions of

General Manager
 Planning Function – planning today avoids crisis tomorrow
 Organizing – an organization is the wedding of authority and responsibility
 Directing -
 Controlling – is the act of checking and regulating
2. Operative Function – operative function are those function of the personnel

department which are of the routine nature.
 Procurement of Personnel
 Development of Personnel
 Compensation to Employees
 Integration
 Maintenance of Personnel
Scope of personnel management

1. HR Planning
2. Job analysis & job designing

3. Recruitment and selection
4. Orientation (Direction) & placement
5. Training and development
6. Performance appraisal & job evaluation
7. Employee & executive remuneration
8. Motivation & communication
9. Welfare, safety & health
10. Industrial relation (IR)
Human Resource Planning

“Manpower planning is the process of developing and determining objectives, policies and
programmes that will develop, utilise and distribute manpower so as to achieve the goals of the
organization”
thus, we can say that manpower planning is a process by which the organization ensure the right
number of people, right type of people at the right place and at the right time doing the right
things for which they are suited for the achievement of the goals of the organization.
Need of Human Resource planning
1. Increase in the size of the business
2. Effective recruitment and selection policy
3. Reduction in labour cost
4. Avoiding disruption in production – personnel may be estimated and they are recruited
and trained on the basis of job
5. National policy on employment – once the organization recruited to the worker, can’t fire
easily
6. Effective employee development programme
HUMAN RESOURCE PLANNING PROCESS:
Human resource (HR) planning or manpower planning is a continuous process. The human
resource manager is required to revise the employment policies from time to time for achieving
the best results. Human resource planning/ manpower planning process involve the following
steps:-

1.Organizational Objectives – short –term & long – term
2.Human Resource Requirements – determine the period for forecasting requirements of

manpower in the future (requirement at the end of the first year, II year, III year IV year, & V year
etc.) and forecast the manpower required at the end of such period.
3.Human Resource Programs – from the number available at the commencement of the period,
deduct the expected wastage through deaths, Resignations, retirements & discharges. This would
give the manpower available from existing staff at the end of the period concerned. A comparison
of the figures arrived at in steps first and second, would indicate shortages or surpluses in
manpower requirements.
4.Feasibility Analysis –
1. In case of shortage – decide how such shortages are to be met (whether through
fresh recruitment and promotion )
2. In case of surpluses - decide how these surpluses will be dealt with like through
early retirements, discharges, or lay off
OR
There are two types of HRP Planning:

► Short – Term Planning- is made for short time (not more then two year) & is more
concerned with specific projects and programmes.

► Long –Term Planning-Planning for more than two year.
Job Analysis
Job analysis, contains a simple term called "analysis", which means detailed study or examination
of something (job) in order to understand more about it (job). therefore job analysis is to
understand more about a specific job in order to optimise it. Job analysis is a systematic process
of collecting complete information pertaining to a job.
Job analysis is a procedure through which you determine the duties and responsibilities, nature
of the jobs and finally to decide qualifications, skills and knowledge to be required for an
employee to perform particular job. Job analysis helps to understand what tasks are important
and how they are carried on. Job analysis forms basis for later HR activities such as developing
effective training program, selection of employees, setting up of performance standards.
One of the first industrial-organizational psychologists to introduce job analysis was Morris
Viteles. In 1922, he used job analysis in order to select employees for a trolley car company.
Most Common Methods of Job Analysis
▪ Observation Method: A job analyst observes an employee and records all his performed
and non-performed task, fulfilled and un-fulfilled responsibilities and duties, methods,
ways and skills used by him or her to perform various duties and his or her mental or
emotional ability to handle challenges and risks. However, it seems one of the easiest
methods to analyze a specific job but truth is that it is the most difficult one. Why? Let’s
Discover.
It is due to the fact that every person has his own way of observing things. Different
people think different and interpret the findings in different ways. Therefore, the process
may involve personal biasness or likes and dislikes and may not produce genuine results.
This error can be avoided by proper training of job analyst or whoever will be conducting
the job analysis process.
This particular method includes three techniques: direct observation, Work Methods
Analysis and Critical Incident Technique. The first method includes direct observation and
recording of behaviour of an employee in different situations. The second involves the
study of time and motion and is specially used for assembly-line or factory workers. The
third one is about identifying the work behaviours that result in performance.
▪ Interview Method: In this method, an employee is interviewed so that he or she comes

up with their own working styles, problems faced by them, use of particular skills and
techniques while performing their job and insecurities and fears about their careers.
This method helps interviewer know what exactly an employee thinks about his or her

own job and responsibilities involved in it. It involves analysis of job by employee himself.
In order to generate honest and true feedback or collect genuine data, questions asked
during the interview should be carefully decided. And to avoid errors, it is always good to
interview more than one individual to get a pool of responses. Then it can be generalized
and used for the whole group.
▪ Questionnaire Method: Another commonly used job analysis method is getting the
questionnaires filled from employees, their superiors and managers. However, this
method also suffers from personal biasness. A great care should be takes while framing
questions for different grades of employees.
In order to get the true job-related info, management should effectively communicate it
to the staff that data collected will be used for their own good. It is very important to
ensure them that it won’t be used against them in anyway. If it is not done properly, it
will be a sheer wastage of time, money and human resources.
Job Analysis is a primary tool to collect job-related data. The process results in collecting and
recording two data sets including job description and job specification. Any job vacancy can not
be filled until and unless HR manager has these two sets of data. It is necessary to define them
accurately in order to fit the right person at the right place and at the right time. This helps both
employer and employee understand what exactly needs to be delivered and how.
Both job description and job specification are essential parts of job analysis information. Writing
them clearly and accurately helps organization and workers cope with many challenges while
onboard.
Though preparing job description and job specification are not legal requirements yet play a vital
role in getting the desired outcome. These data sets help in determining the necessity, worth and
scope of a specific job.
Job Description
Job description includes basic job-related data that is useful to advertise a specific job and attract
a pool of talent. It includes information such as job title, job location, reporting to and of
employees, job summary, nature and objectives of a job, tasks and duties to be performed,
working conditions, machines, tools and equipments to be used by a prospective worker and
hazards involved in it.
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.
Job Specification
Also known as employee specifications, a job specification is a written statement of educational

qualifications, specific qualities, level of experience, physical, emotional, technical and
communication skills required to perform a job, responsibilities involved in a job and other
unusual sensory demands. It also includes general health, mental health, intelligence, aptitude,
memory, judgment, leadership skills, emotional ability, adaptability, flexibility, values and ethics,
manners and creativity, etc.
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.
Job description and job specification are two integral parts of job analysis. They define a job fully
and guide both employer and employee on how to go about the whole process of recruitment
and selection. Both data sets are extremely relevant for creating a right fit between job and
talent, evaluate performance and analyze training needs and measuring the worth of a particular
job.
Contents of Job Specification
The following are the contents of Job Specification:
→ Physical Qualifications: These qualifications or specifications vary from job to job. Physical
Qualifications are nothing but the capabilities of employees. These include height, weight,
hearing, vision, capacity to handle machines etc.
→ Mental Qualifications: This includes the ability to interpret data, calculations, planning,
general knowledge, judgement, memory etc.
→ Social and Emotional specifications: This is vital for the role of Managers and Supervisors. It
includes emotional constancy and elasticity. It also includes the way they dress, personality and
relationship.

→ Behavioral Qualifications: This qualification is very important in selecting employees for

higher levels of management. This specification asks to depict the acts of the managers rather
than traits which cause those acts. This includes creativity, research, maturity level, dominance
etc.
Methods of Job Analysis
1. Observation Method: In this method the job analyst observes the employees work and records
all the tasks that are performed and also those that are not performed.
2. Interview Method: In this method the manpower is interviewed. The employee under this
method comes up with different ideas towards their working style, problems faced by them and
uncertainties or insecurities faced by them. It helps the organization in knowing exactly what the
employees are thinking about their jobs.
3. Questionnaire Method: This is another common method of Job Analysis, which uses a
questionnaire to be filled by the employees.. Here different types of questionnaires are prepared
for different grades which is also time consuming.
UNIT -2
Recruitment and Selection
Employees are committed to employing the best qualified candidates while engaging in
recruitment and selection practices that comply with all applicable employment laws. It is the
policy to provide equal employment opportunity to all applicants and employees.
Authorization from the Human Resources (HR) Director is required to initiate any action for an
open position, including recruitment expenditures, advertising, interviewing and offers of
employment.
Recruitment Process
1. The hiring manager submits a completed requisition to the HR department.
2. The HR department will assign a requisition number to assist in tracking and reporting.
3. The HR department will meet with the hiring manager to discuss the position and determine
the most effective recruitment and selection process.
4. Recruitment sources will include some or all of the following:

a)[Company Name] website.
b)Internal posting.
c) Online job boards.
d) Social media sites (Face book and LinkedIn).
e)Newspaper advertising.
f) Retained agency search.
g) Temporary agency placement.
h)Employee referrals.
5. The HR department and hiring manager will review resumes of qualified candidates to
identify the most appropriate candidates for interviewing.
6. The HR department will conduct telephone pre-screens of identified candidates and schedule
in-person interviews with the hiring manager.
Selection:
Selection is the process of picking or choosing the right candidate, who is most suitable for a
vacant job position in an organization. In others words, selection can also be explained as the
process of interviewing the candidates and evaluating their qualities, which are required for a
specific job and then choosing the suitable candidate for the position.
The selection of a right applicant for a vacant position will be an asset to the organization, which
will be helping the organization in reaching its objectives.
Selection Process
1. Preliminary Interview:
The Executive of the organisation conduct a brief interview of the candidates to determine
whether it is worthwhile for the candidate to fill up the blank application. Minimum qualifications
and experience of the candidate, his age, etc., are ascertained. Preliminary interview helps to
eliminate those candidates who are obviously unfit for the job.
2. Blank Application:
The candidates who succeed in preliminary interviews are required to fill in a specially drafted

blank application form. It provides a written record of the qualifications, experience age, etc., of
candidates. It can be used as a good test device for the expression, handwriting and other abilities
of the candidates. Therefore, it should be designed carefully so as to secure all relevant
information about the candidate. There is no standard form of blank application for all firms. As
far as possible, it should be simple and brief.
3. Selection Tests:
Candidates may have to undertake selection tests to establish their claim for the job. These tests
are based on the assumption that, human behaviour in an actual work situation can be predicted
by sampling it.
4. Selection Interview:
Interview serves as a means of checking the information given in the application forms and the
tests results. It also provides an opportunity to the candidates to enquire about the job during
interview. Managers get an opportunity to take a decision about their suitability for employment.
Selection interview should be conducted in an atmosphere which is free from disturbance, noise
and interruption. Interview should be conducted in great depth to judge the suitability of the
candidates.
5. Checking References:
References are generally required to enquire about the conduct of those candidates who have
been found suitable in the interviews and tests. References can be collected from the previous
employers, colleges last attended or from any other reliable source.
Before forming a balanced opinion, it is necessary to enquire from three to five persons about
the conduct of the prospective candidate. However, this exercise may not always produce the
desired results because (i) no candidate will cite the name of a referee who might speak
unfavourably about him; (ii) the referee may not always respond; and (iii) due to a prejudice the
referee may deliberately speak against the candidate.
6. Medical Examination:
A physical examination of the potential employee is necessary for the company, to protect itself
against the risk of claims for compensation from individuals who are afflicted with disabilities.
The medical examination should be both general and thorough. The findings should be carefully
recorded so as to give a complete medical history, the scope of current physical capacities, and
the nature of disabilities, if any.
7. Final Approval:
After a candidate has cleared all the hurdles in the selection procedure, he is formally appointed
by issuing him an appointment letter or by making a service agreement with him. No selection
procedure is fool proof and the best way to judge a person is by observing him working on the
job.
8. Employment:
Candidates who give satisfactory performance during the probationary period are made
permanent.
PLACEMENT
The act of offering the job to a finally selected candidate is called placement” the selection
procedure ends with the placement of worker to the job.The Probation Period – the probation
period is specifically defined as trial period, extended from 3 months to 12 months
Placement is the process of assigning specific jobs and work places to the selected candidates. It
involves putting square pegs in to square holes i.e. matching the individual and the job. Correct
placement is in no way less important than accurate selection. Even a competent employee
maybe inefficient and dissatisfied if put on a wrong job.
Correct placement helps to improve efficiency and satisfaction of employees. While placing
employees on the job the requirements of both the organization and the employee should be
considered requirements of the organization include nature of job, number of vacancies in a
particular branch or unit degree of difficulty in the job etc. Age, marital status, language patterns,
qualifications and experience of a particular candidate should also be considered while placing
the right man on the right job.
Basic principles of Placement
1. Right person should be placed on the right job.

2. The job should be offered to the man according to his qualification.
3. The employee should be made familiar with the working conditions prevailing in the
industry
4. Develop a sense of loyalty and cooperation
Induction of an Employee
When a candidate is finally selected, he is issued the appointment letter and is asked to join the
organization on or up to a specified date.When a new employee reports for duty, he should be
welcomed as a new member of the organization and must be helped to get acquainted and
adjusted with his fellow employees and work environment.
Elements of a good induction program
1. Introductory information- introduction regarding the history of the company products of

the company, structure, policies, rules and regulations relating to leaves, attendance, pay
etc.
2. On the job information – departmental facilities and requirements
3. Follow-up interview – to find out the problem

Objective of induction program
► To promote a feeling of belonging and loyalty

► To build up the new employee ‘s confidence in the organization
► To give the new employee information regarding company
► To introduce the new worker to the supervisor
Interviews
Interview is a conversation directed to specific purpose other than satisfaction in the

conversation itselfThere is give and take between the interviewer and interviewee, and much of
the interaction between these two is carried on by gestures, postures, facial expressions, and
other communicative behavior.
Purposes of the Interview
1. To find out the suitability of the candidate

2. To seek more information about the candidate
3. To give the candidate an accurate picture of the job-
4. To find out the mutual understanding and confidence –
Psychological tests
Psychological tests are the best judge of the psychological behavior in selecting an employee and
is superior to the traditional interview procedure. It helps the management in selecting a
candidate to technical position
Psychological test can classify in the following categories.
1. Intelligence tests – In this kind of test, simple questions are asked pertaining to reasoning,
commonsense, arithmetic, vocabulary etc.
2. Aptitude (skill) tests – this type of test may also be used to train the workers when there is
a technical changes in machines and methods.
3. Interest tests – these tests are designed to discover the patterns of individual interest so
that he may be placed at a suitable job satisfying him. By this test employee’s hobbies, and
likes and dislikes are recorded in the form of a questionnaire.
4. Personality tests – for the motivation to others. These tests indicate the basic temperament
of the candidate and what may be described as his characteristic mood.
5. Achievement tests – these tests attempt to measure what he has learnt of how well he
knows it.
Promotion

► Promotion involves movements of a person to a position carrying higher status, more pay,
increased responsibilities, increased benefits and privileges in the same organization.
► A promotion involves a change from one job to another that is better in terms of status
and responsibility.
The policy of filling vacancies at higher levels through promotion bears the following advantages
1. Insiders shall have on problem in handling the new job.

2. Keep the morale of the employees high.
3. Increase the efficiency of employee.
4. The cost of train the insider will be much lesser.
5. Several personal problems are solved automatically.
Principles of promotion
1. Promotion policy should be in writing.

2. Promotion policy should be lay down what percentage of higher post should be filled up
by promotion.
3. The basis of promotion –
► Seniority
► Merit
4. Promotion closely allied to training programme.
5. Scientific procedure for evaluating performance
Basis of Promotion
1. Seniority – if seniority is adopted as the basis of promotion the senior most person in the
lower grade shall be promoted as and when there is an opening in the higher position.
2. Merit – means ability to work. If merit is adopted as the basis of promotion the most able
person in the lower grade, no matter he junior most in the organization.
Demotion
► Demotion or demoting an employee is the reverse of promoting him. Where he is moved

to a job with less responsibility, status, or compensation, the employee is said to have
been downgraded or demoted
Causes of demotion
► Mistake in staffing – person is promoted wrongly

► Employee is not performing well on the job-
► Staff reductions –
► When the employee has lost his capacity to work

Transfer
► Transfer is the movement of an employee form one job to another without involving any
substantial (large) change in his duties, responsibilities, required skill, status and
compensation.
Transfer may be classified in the basis of purpose or unit
1. On the basis of purpose –

▪ Production transfers – such transfer are generally made where one department is
overstaffed and the other one is a short of manpower.
▪ Replacement transfers – senior to junior
▪ Versatility transfer – to increase versatility of the employee from one job to another
and one department to another department.
▪ Shift transfers –when the unit runes in shifts
▪ Curative or remedial transfers – these transfer are generally made to rectify the
situation caused by faulty selection or placement.
▪ Personnel transfers– such transfer are made primarily to meet the personnel
requests or needs of the employees.
Interview:
Interview is a procedure designed to obtain information from a person through oral responses
to oral inquiries.An interview is the way of face to face conversation between the interviewer
and the interviewee, where the interviewer seeks replies from the interviewee for choosing a
potential human resource.
Definition of Interview According to Gary Dessler, “Interview is a selection procedure designed

to predict future job performance on the basis of applicants’ oral responses to oral inquiries.”The
interview is the most critical component of the entire selection process.
It serves as the primary means to collect additional information on an applicant. It serves as the
basis for assessing an applicant’s job-related knowledge, skills, and abilities. It is designed to
decide if an individual should be interviewed further, hired, or eliminated from consideration.
Types of Interview
There are several types of the interview;
1. Unstructured (Nondirective) Interview.
2. Structured (Directive) Interview.
3. Situational Interview.

4. Behavioral Interview.
5. Job-related Interview.
6. Stress Interview.
7. Panel Interview (Board Interview).
8. One-On-One Interview.
9. Mass Interview (Group Interview),
10. Phone Interview
Unstructured (Nondirective) Interview
Unstructured interviews, there is generally no set format to follow, so the interview can take
various directions. The lack of structure allows the interviewer to ask follow-up questions and
pursue points of interest as they develop.
An unstructured interview is an interview where probing, open-ended questions are asked. It

involves a procedure where different questions may be asked to different applicants.
Structured (Directive) Interview
In structured interviews, the interviewer lists the questions and acceptable responses in advance
and may even rate and score possible answer for appropriateness.
An interview consisting of a series of job-related questions that are asked consistently of each
applicant for a particular job is known as a structured interview.
A structured interview typically contains four types of questions.
▪ Situational questions: Pose a hypothetical job situation to determine what the applicant would
do in that situation.
▪ Job knowledge questions: Probe the applicant’s job-related knowledge.
▪ Job-sample simulation questions: Involve situations in which an applicant may be actually

required to perform a sample task from the job.
▪ Worker requirements questions: Seek to determine the applicant’s willingness to conform to the
requirements of the job.

Situational Interview
In a situational interview, you ask the candidate what his or her behavior would be in a given
situation. Candidates are interviewed about what actions they would take in various job-related
situations. Situational interviews ask interviewees to describe how they would react to a
hypothetical situation today or tomorrow.
Behavioral Interview
In a behavioral interview, you ask applicants to describe how they reacted to actual situations in
the past.
Candidates are asked what actions they have taken in prior job situations that are similar to
situations they may encounter on the job. The interviewers are then scored using a scoring guide
constructed by job experts.This is a structured interview that uses questions designed to probe
the candidate’s past behavior in specific situations. This technique involves asking all
interviewees standardized questions about how they handled past situations that were similar
to situations they may encounter on the job.
The interviewer may also ask discretionary probing questions for details of the situations, the
interviewee’s behavior in the situation and the outcome. The interviewee’s responses are then
scored with behaviorally anchored rating scales.
Job-related Interview
In a job-related interview, the interviewer asks applicants questions about relevant past
experiences.It is a series of job-related questions that focus on relevant past job-related
behaviors. The questions here don’t revolve around hypothetical or actual situations or
scenarios.
Instead, the interviewer asks job-related questions such as, ‘‘Which courses did you like best in
business school?”
Stress Interview
In a stress interview, the interviewer seeks to make the applicant uncomfortable with
occasionally rude questions. The aim is supposedly to spot sensitive applicants and those with
low or high-stress tolerance.
Stress interviews may help unearth hypersensitive applicants who might overreact to mild
criticism with anger and abuse. It intentionally creates anxiety to determine how an applicant
will react to stress on the job.

Panel Interview (Board Interview)
A panel interview, also known as a board interview, is an interview conducted by a team of

interviewers, who together interview each candidate and then combine their ratings into a final
score.Here one candidate is interviewed by several representatives of the firm. This technique
entails the job candidate giving oral responses to job-related questions asked by a panel of
interviewers.
Each member of the panel then rates each interviewee on such dimensions as work history,
motivation, creative thinking, and presentation.
The scoring procedure for oral interview boards has typically been subjective; thus, it would be
subject to personal biases of those individuals sitting on the board. This technique may not be
feasible for jobs in which there are a large number of applicants that must be interviewed.
One-On-One Interview
In a one-on-one interview, one interviewer meets one candidate. In a typical employment

interview, the applicant meets one-on-one with an interviewer. As the interview may be a highly
emotional occasion for the applicant, meeting alone with the interviewer is often less
threatening.
Mass Interview (Group Interview)
The mass/group interview is a relatively new technique in the west and almost unknown in our
country. It is a procedure for the discovery of leadership.Several job applicants are placed in a
leaderless discussion and interviewers sit in the background to observe and evaluate the
performance of the candidates.
In a mass/group interview, a panel interviews several candidates simultaneously. The panel poses
a problem and then watches to see which candidate takes the lead in formulating an answer.
Phone Interview
Employers do some interviews entirely by These can actually be more accurate than face-to-face
interviews for judging an applicant’s conscientiousness, intelligence, and interpersonal skills.
Here, neither party needs to worry about things like appearance or handshakes, so each can focus
on substantive answers. Or perhaps candidates – somewhat surprised by an unexpected call from
the recruiter – just give answers that are more spontaneous.
Psychological Testing:

Psychological testing, also called psychometrics, the systematic use of tests to quantify
psychophysical behaviour, abilities, and problems and to make predictions about psychological
performance.
The word “test” refers to any means (often formally contrived) used to elicit responses to
which human behaviour in other contexts can be related. When intended to predict relatively
distant future behaviour (e.g., success in school), such a device is called an aptitude test. When
used to evaluate the individual’s present academic or vocational skill, it may be called
an achievement test. In such settings as guidance offices, mental-health clinics, and psychiatric
hospitals, tests of ability and personality may be helpful in the diagnosis and detection of
troublesome behaviour. Industry and government alike have been prodigious users of tests for
selecting workers. Research workers often rely on tests to translate theoretical concepts
(e.g., intelligence) into experimentally useful measures.
Employee Absenteeism: The co-operaton of workers is essential for the good health of any
organisation. Sometimes labour turnover and absenteeism become a major problem for the
management. The exit of workers or their absence from work disrupts production schedules. Any
make shift arrangement for absent workers will be a costly affair for the enterprise.
Causes of Employee Absenteeism:

Some of the causes of absenteeism are discussed as follows:
(i) Maladjustment at Work Place:
Workers, sometimes, do not adjust to the situation prevailing at work place. Workers coming
from rural to urban areas do not adjust at those places. The congestion, insanitation, fast life at
urban areas is not to the liking of village folk. They frequently go back to villages after absenting
from work.
(ii) Unhealthy Working Conditions:

If working conditions are not good then workers frequently absent themselves from work. Heat,
moisture, noise, bad lighting, dust, over-crowding affect workers’ health causing them to remain
absent for longer periods.
(iii) Social and Religious Ceremonies:

Social and religious ceremonies are a major cause for absenteeism. These functions divert the
attention of workers and they spend too much time on these activities. Some studies have shown
that rate of absenteeism has been higher during festival periods as compared to other periods.
(iv) Industrial Fatigue:

Fatigue is also an important cause of absenteeism. To earn more wages, workers may do
overtime or may work at a higher speed under incentive plans and start feeling tired for the next
day. Low wage rates also compel them to do some part time work after working hours. They may
not be able to face additional burden and thus fall ill leading to long absenteeism.
(v) Inadequate Welfare Facilities:

Inadequate welfare facilities also lead to absenteeism. There may be inadequate facilities for
drinking water, sanitation, canteen, rest rooms, crèches etc. Workers feel inconvenience at work.
They go back to their homes for having some rest.
(vi) Alcoholism:
The habit of alcoholism is very common among workers. They want to forget their domestic
worries by drinking alcohol. Drinking becomes their habit and its hangover on the next day
compels them to absent from work. Workers indulge in more drinking after getting their wages
and more absenteeism is reported in these days.
(vii) Inadequate Leave Facilities:

The workers do not get proper facilities for attending to family work. Since they are entitled for
limited number of leaves, they do not go to work whenever they have to attend to family needs.
(viii) Age:
Absenteeism is higher among teenagers and old persons. Teenagers are casual in their work and
old people exhaust after continuous work.
Effects of Employee Absenteeism:

Excessive absenteeism is harmful to both employees and workers in the following ways:
1. Regular flow of work in the factory/office is disturbed.
2. Production schedules are delayed, so the orders cannot be executed in time.
3. Overall production declines.
4. Overtime bill increases considerably.
5. Quality of work suffers because the casual workers employed to maintain work schedules are

not properly trained.
6. Work pressure on available and present employees increases.
7. Repairs and maintenance costs increase due to frequent breakdown of machinery by

inexperienced workers.
8. Incidence of industrial accidents increase.
9. Workers lose wages for unauthorised absence from duty.
10. Reduction in earnings increases indebtedness of workers which is further a cause of

absenteeism.
What is Employee Turnover? Employee turnover, or employee turnover rate, is the measurement
of the number of employees who leave an organization during a specified time period, typically
one year. While an organization usually measures the total number of employees who leave,
turnover can also apply to subcategories within an organization like individual departments or
demographic groups.
Voluntary Turnover vs Involuntary Turnover
Voluntary turnover is any instance in which an employee actively chooses to leave an

organization. This can happen as a result of better job opportunities elsewhere, conflict within
the workplace, disengagement, and more.
Involuntary turnover is when an employer chooses to terminate an employee, possibly because
of poor performance, toxic behavior, or other reasons.
While low employee turnover is the goal for most organizations, what constitutes low vs. high
turnover can change depending on industry, job type, company size, region, and more. For
example, a fast food restaurant will likely have a higher average turnover rate than an insurance
company. Because of the many variables affecting turnover, benchmarks for acceptable or ideal
turnover vary. It’s important for organizations to take individual and industry-related factors into
account as they pinpoint their target turnover rate, study the reasons behind their voluntary and
involuntary turnover, and make changes to decrease the employee turnover rate and improve
retention for their own workforce.

TRAINING AND METHODS:
Training is enriching the capabilities and skills of the Employees.Training directly leads to increase
in Productivity of the Employees and helps in achieving Professional as well as Organisational
Goals .The training methods are of 2 types;
1.On the Job Training
2.Off the Job training
When an employee learns the job in actual working site in real life situation, and not simulated
environment, it is called On-the-job training and also called as Workplace training. Employee
learns while working. Take the instance of roadside mechanics. Small boys working there as
helpers learn while helping the head mechanic. They do not learn the defect analysis and engine
repairing skills in any classroom on engine models.
This type of training, also known as job instruction training, is the most commonly used method.
Under this method, the individual is placed on a regular job and taught the skills necessary to
perform that job. The trainee learns under the supervision and guidance of a qualified worker or
instructor. On-the-job training has the advantage of giving firsthand knowledge and experience
under actual working conditions. While the trainee learns how to perform a job, he is also a
regular worker rendering the services for which he is paid. The problem of transfer of trainee is
also minimised as the person learns on-the-job. The emphasis is placed on rendering services in
the most effective manner rather than learning how to perform the job.
On-the-job training methods include job rotation, coaching, job instruction or training through
step-by-step and committee assignments.
a) Job Rotation: This type of training involves the movement of the trainee from one job to
another.
The trainee receives job knowledge and gains experience from his supervisor or trainer in each
of the different job assignments. Though this method of training is common in training managers
for general management positions, trainees can also be rotated from job to job in workshop jobs.
This method gives an opportunity to the trainee to understand the problems of employees on
other jobs and respect them.
(c) Job Instruction: This method is also known as training through step by step. Under this
method, trainer explains the trainee the way of doing the jobs by giving the instructions.

(d) Committee Assignments: Under the committee assignment, group of trainees are given and
asked to solve an actual organisational problem. The trainees solve the problem jointly. It
develops team work.
(e) Apprenticeship: Apprenticeship is a formalized method of training curriculum program that

combines classroom education with on-the-job work under close supervision. The training
curriculum is planned in advance and conducted in careful steps from day to day. Most trade
apprenticeship programs have a duration of three to four years before an apprentice is
considered completely accomplished in that trade or profession. This method is appropriate for
training in crafts, trades and technical areas, especially when proficiency in a job is the result of
a relatively long training or apprenticeship period, e.g., job of a craftsman, a machinist, a printer,
a tool maker, a pattern designer, a mechanic, etc.
f)Internship
Internship is one of the on-the-job training methods. Individuals entering industry in skilled
trades like machinist, electrician and laboratory technician are provided with thorough
instruction though theoretical and practical aspects. For example, TISCO, TELCO and BHEL select
the candidates from polytechnics, engineering colleges and management institutions and
provide apprenticeship training. Apprenticeship training programmes are jointly sponsored by
colleges, universities and industrial organisations to provide the opportunity to the students to
gain real-life experience as well as employment. Exhibit presents the benefits of apprenticeship
training.
Advantages of On-the-Job Training:
1. It is directly in the context of job

2. It is often informal
3. It is most effective because it is learning by experience
4. It is least expensive
5. Trainees are highly motivated
6. It is free from artificial classroom situations
Disadvantages of On-the-Job Training:
1. Trainer may not be experienced enough to train or he may not be so inclined.

2. It is not systematically organized
3. Poorly conducted programs may create safety hazards.

Off-the-job Training Methods:
Off-the-job training methods are conducted in separate from the job environment, study
material is supplied, there is full concentration on learning rather than performing, and there is
freedom of expression. Important methods include:
1. Lectures and Conferences:

Lectures and conferences are the traditional and direct method of instruction. Every training
programme starts with lecture and conference. It’s a verbal presentation for a large audience.
However, the lectures have to be motivating and creating interest among trainees. The speaker
must have considerable depth in the subject. In the colleges and universities, lectures and
seminars are the most common methods used for training.
2. Vestibule Training:
Vestibule Training is a term for near-the-job training, as it offers access to something new
(learning). In vestibule training, the workers are trained in a prototype environment on specific
jobs in a special part of the plant.
An attempt is made to create working condition similar to the actual workshop conditions. After
training workers in such condition, the trained workers may be put on similar jobs in the actual
workshop.
This enables the workers to secure training in the best methods to work and to get rid of initial
nervousness. During the Second World War II, this method was used to train a large number of
workers in a short period of time. It may also be used as a preliminary to on-the job training.
Duration ranges from few days to few weeks. It prevents trainees to commit costly mistakes on
the actual machines.
Simulation is any artificial environment exactly similar to the actual situation. There are four basic
simulation techniques used for imparting training: management games, case study, role playing,
and in-basket training.
(a) Management Games:

Properly designed games help to ingrain thinking habits, analytical, logical and reasoning
capabilities, importance of team work, time management, to make decisions lacking complete
information, communication and leadership capabilities. Use of management games can
encourage novel, innovative mechanisms for coping with stress.
Management games orient a candidate with practical applicability of the subject. These games
help to appreciate management concepts in a practical way. Different games are used for training
general managers and the middle management and functional heads – executive Games and
functional heads.
Case Study:
Case studies are complex examples which give an insight into the context of a problem as well as
illustrating the main point. Case Studies are trainee centered activities based on topics that
demonstrate theoretical concepts in an applied setting.
A case study allows the application of theoretical concepts to be demonstrated, thus bridging the
gap between theory and practice, encourage active learning, provides an opportunity for the
development of key skills such as communication, group working and problem solving, and
increases the trainees” enjoyment of the topic and hence their desire to learn.
(c) Role Playing:

Each trainee takes the role of a person affected by an issue and studies the impacts of the issues
on human life and/or the effects of human activities on the world around us from the perspective
of that person.
It emphasizes the “real- world” side of science and challenges students to deal with complex
problems with no single “right” answer and to use a variety of skills beyond those employed in a
typical research project.
In particular, role-playing presents the student a valuable opportunity to learn not just the course
content, but other perspectives on it. The steps involved in role playing include defining
objectives, choose context & roles, introducing the exercise, trainee preparation/research, the
role-play, concluding discussion, and assessment. Types of role play may be multiple role play,
single role play, role rotation, and spontaneous role play.
(d) In-basket training:

In-basket exercise, also known as in-tray training, consists of a set of business papers which may
include e-mail SMSs, reports, memos, and other items. Now the trainer is asked to prioritise the
decisions to be made immediately and the ones that can be delayed.
4. Sensitivity Training:
Sensitivity training is also known as laboratory or T-group training. This training is about making
people understand about themselves and others reasonably, which is done by developing in
them social sensitivity and behavioral flexibility. It is ability of an individual to sense what others
feel and think from their own point of view.
It reveals information about his or her own personal qualities, concerns, emotional issues, and
things that he or she has in common with other members of the group. It is the ability to behave
suitably in light of understanding.
A group’s trainer refrains from acting as a group leader or lecturer, attempting instead to clarify
the group processes using incidents as examples to clarify general points or provide feedback.
The group action, overall, is the goal as well as the process.
Employee Discharge
The manner in which an employee leaves a job can have legal implications and can determine
how a company handles a discharge lawsuit. It is important for a business to know about the
different types of employee discharge that exist so it can appropriately prepare for and deal
with potential post-employment issues.
Involuntary Discharge
The involuntary discharge of an employee refers to a company's decision to terminate an

employee. Involuntary discharge types include firing and laying off employees. When a
company fires an employee, it generally stems from behavioral or performance issues on the
worker's part. When a company issues layoffs, an employer generally faces economic hardships
that cause it to go out of business, eliminate positions within the company or undergo
restructuring. However, another reason for an employee layoff is the unsatisfactory completion
of a new or current employee's probationary period.

Voluntary Discharge
A voluntary discharge refers to an employee's decision to leave her job or quit. Reasons an
employee would quit a job include events happening in an employee's personal life,
dissatisfaction with her employer or position, fear of termination and accepting a job with a
different company. Retirement also may be a reason for a voluntary discharge if an employee
becomes disabled, has a medical condition that does not allow her to work or a company has
reached retirement age. Most employers prefer that employees provide at least a two-week
notice before leaving a company so managers can plan for a replacement.
Mutual Agreement
When an employee loses his job because of a mutual agreement, he and his employer may
have agreed upon a termination date in an employment contract. Alternatively, the employee
may have faced a forced resignation, which generally refers to an employer's desire to
terminate an employee, but offered the employee the chance to resign instead. Mandatory
retirement also is a form of employee discharge that is part of a mutual agreement. For
example, some airline pilots and police officers may have to retire when they reach a specific
age. In instances when a company does not want to fire an employee, it may willingly create
an environment that would cause an employee to quit his job, which is unlawful in some states.
Discharge without Prejudice
Sometimes an employee can regain her position with an employer after a discharge, a situation
referred to as a discharge without prejudice. Layoffs generally prompt discharges without
prejudice, meaning an employer is willing to rehire an employee if the same or a similar position
becomes available later
UNIT 3
Performance Appraisal & Salary wage Administration
Performance Appraisal refers to the process of knowing the difference between Set performance
standards and actual performance.
Everything you need to learn about the methods of performance appraisal in human resource
management. There are different methods of performance appraisal.
Each method of performance appraisal has its advantages and limitations. There is no single
appraisal method accepted and used by all organizations to measure their employees’
performance.
Every organization chooses the method of performance appraisal that best suits them. There are
some traditional methods of performance appraisal. Some modern methods of performance

appraisal have evolved.

The methods of performance appraisal are classified into traditional methods and modern
methods. These are further sub-classified under the following heads-
A: Some of the Traditional Methods of Performance Appraisal are:-
1. Rating Scales
2. Confidential Report
3. Ranking Method
4. Paired Comparison Method
5. Grading System
6. Checklist Method
7. Forced Choice Method
8. Essay Method
9. Performance Tests and Observation
10. Forced Distribution Method and
11. Field Review Method.
B: Some of the Modern Methods of Performance Appraisal are:-
1. Assessment Centres
2. Human Resource Accounting
3. Behaviourally Anchored Rating Scale (BARS
4. Management by Objectives (MBO)
5. 360 Degree Feedback
6. Psychological Appraisals and
7. Human-Asset-Accounting Method.
1. Traditional Methods:
Traditional methods are also known as trait methods. Trait approaches to performance appraisal
are designed to measure the extent to which an employee possesses certain characteristics such
as dependability, creativity, initiative and leadership that are viewed as important and desirable
for the job and the organisation in general. There may also be added work-related characteristics
such as job knowledge, ability to complete an assignment, success in carrying out plans, etc.
As there are different methods of rating people on the basis of such dimensions, there are several
methods based on this approach. The reason that trait methods are the most popular is largely
due to the ease with which they are developed.
Some of these methods are as follows:
I. Rating Scales:

In this method, each trait or characteristic to be rated is represented by the scale on which a
rater indicates the degree to which an employee possesses that trait or characteristic. This is the
simplest and most popular technique for appraising employee performance.
The typical rating scale system consists of several numerical scales, each representing a job-
related performance criterion such as dependability, initiative, attendance, output, attitude and
cooperation. Each scale ranges from excellent to poor. The rater checks the appropriate
performance level on each criterion, and then computes the employee’s total numerical score.
II. Confidential Report:
Confidential Reports are maintained mostly in government departments, though its application
in the industry is not ruled out. These reports differ from department to department and from
level to level. The confidential report is written for a unit for one year and relates to the
performance, ability, and character of the employee during that year. The report is not data
based but is subjective. No feedback is provided to the employee being appraised and therefore,
its credibility is very low.
The approach called Annual Confidential Report (ACR), contains 14 items:
(i) Attendance
(ii) Self-expression
(iii) Ability to work with others
(iv) Leadership
(v) Initiative
(vi) Technical ability
(vii) Ability to understand new material
(viii) Ability to reason
(ix) Originality
(x) Areas of work that suit the person best
(xi) Judgement

(xii) Integrity
(xiii) Responsibility
(xiv) Any defect.

III. Ranking Method:
In this, the superior ranks his or her subordinates in the order of their merit, starting from the
best to the worst. It is the simplest and old method of merit rating. Every employee is judged as
a whole without distinguishing the rates from his performance. All that the HR department knows
is that A is better than B. The ‘how’ and ‘why’ are not questioned nor answered.
No attempt is made to fractionalize what is being appraised into component elements. This
method is subject to the halo and regency effects, although ranking by two or more raters is
averaged to help reduce bias. Its advantages include ease of administration and explanation.
IV. Paired Comparison Method:
The paired comparison method is almost similar to ranking method. When variations are made
in the ranking method so that it can easily be used in large groups, it becomes paired comparison
method. In paired comparison method, every person is compared trait wise with the other
persons one at a time. The number of times one person is compared with others is tallied on a
piece of paper. With the help of these numbers, ranks are allotted to the employees.
Rater is provided with the bunch of slips, each containing a pair of names. The rater puts a tick
mark against the person whom he considers better of the two, and the final ranking is determined
by taking the total of number of times an employee is ranked better than another employee.
V. Grading System:
In this method, certain characteristics or abilities of performance are identified in advance and
the employees are put into the category according to their behaviour and traits. Such categories
are defined as outstanding, good, average, below average, and poor in terms of letters like A, B,
C, D, E where A indicates the best, and E the poorest. This method is used for the promotions
based on performance.
VI. Checklist Method:
Under this method, a checklist of statements on the traits of the employees and his or her job is
prepared in two columns – viz. a ‘Yes’ column and a ‘No’ column. It is a list of statements that
indicate the performance of the employees on the job. All that the rater has to do is to tick ‘Yes’
column if the answer to the statement is positive and column ‘No’ if the answer is negative. The
performance of the employee is rated on the basis of the number of positive checks.

These checklists are of three types:
(i) Simple Checklist:
In this method, the printed forms containing descriptive questions about the performance of the
employees are provided to the supervisors. The supervisor has two options ‘Yes’ and ‘No’. He
ticks the one according to the behaviour of the employee and sends the filled form to the
personnel department for the final rating.
(ii) Weighted Checklist:
In this method, the weights are allotted to the different statements to indicate their importance
over the other statements. This method is used particularly with the objective of avoiding scope
of personal prejudices.
(iii) Forced Choice Checklist:
Five statements for each trait are given in this checklist. These five statements include two most
descriptive, two least descriptive, and one neutral statement. The rater has to tick on one
statement. This checklist has greater objectivity as compared to the other methods.
VII. Forced Choice Method:
This method requires the rater to choose from statements, often in pairs, that appear equally
favourable or equally unfavourable. The statements, however, are designed to distinguish
between successful and unsuccessful performance. The rater selects one statement from the pair
without knowing which statement correctly describes successful job behaviour.
Forced Choice pairs might include the following:
(i) (a) Works Hard – (b) Works Quickly
(ii) (a) Shows Initiative – (b) Is less responsive to customers
(iii) (a) Produces Poor Quality – (b) Lacks good working habits
This approach is known as forced choice method because the rater is forced to select statements
which are readymade. The advantage of this method is the absence of personal bias in rating.
The disadvantage is that the statements may not be descriptive of the ratee’s trait.
VIII. Essay Method:
This method requires the appraiser to compose a statement that best describes the employee
being appraised. The appraiser is usually instructed to describe the employee’s strengths and
weaknesses and to make recommendations for his or her development. Essay method is often
used in combination with some other rating method. Here, the supervisor continuously watches
the subordinates and writes his assessment in the report.
The following factors are considered by the rater while writing the essay:
(i) Potential of the employee and his knowledge about the job.
(ii) Relationship of the employee with co-workers and supervisors.
(iii) Employee’s traits and attitudes.
(iv) Need for future development, etc.
The essay method provides an excellent opportunity to point out the unique characteristics of
the employee being appraised. It is a non-quantitative technique of appraisal and provides a good
deal of specific information about the employee and can reveal even more about the supervisor.
A major limitation of the essay method is that composing an essay that attempts to cover all the
employee’s characteristics is a time-consuming task. This method may suffer from personal and
human bias because of likings or dis-likings of the supervisor.
IX. Performance Tests and Observation:
With a limited number of jobs, employee assessment may be based upon his test of knowledge
or skills. The test may be of the paper and pencil variety or an actual demonstration of skills. The
test must be reliable and validated to be useful. Even then, the performance tests are apt to
measure potential more than actual performance. In order for the test to be job related,
observation should be made under circumstances likely to be encountered.
X. Forced Distribution Method:
Raters sometimes suffer from a constant error i.e., either they rate the employees as good,
average, or poor. They do not evaluate the employees properly. This system minimises the rater’s
bias so that all employees are not similarly rated. In this method, the appraiser is forced to
appraise the appraisees according to the pattern of the normal curve. This system is based on
the assumption that all employees can be divided in five categories i.e., outstanding, above
average, average, below average, and poor.
XI. Field Review Method:
In this method, an employee is not appraised by his direct superior but by another person usually
from the HR department. This is an appraisal by someone outside the assessee’s own
department, usually someone from the corporate office or the HR department. The basic idea is
that such a person may take a more objective view in the appraisal as he is not under the pressure
as the superior of the employee may be.
The rater also conducts the interview with the employee and his superior for making a qualitative
assessment of the employee. Field reviews are useful and are done when comparable
information is needed from employees in different units or locations.
Two disadvantages of this method are:
(i) An outsider is usually not familiar with conditions in an employee’s work environment.
(ii) An outside reviewer does not have the opportunity to observe the employee behaviour or
performance over a period of time and in a variety of situations
2. Modern Methods of Performance Appraisal:
One of the potential drawbacks of a trait-oriented performance appraisal is that traits tend to be
vague and subjective. One way to improve a rating scale is to have descriptions of behaviour
along a scale, or continuum. These descriptions permit the rater to readily identify the point
where a particular employee falls on the scale.
Modern methods have been developed to specifically describe which actions should be or should
not be exhibited on the job. Modern methods are also called behavioural methods. They are
frequently more useful for providing employees with developmental feedback.
Some of these methods are discussed as follows:
I. Assessment Centres:
In the 1930s, the concept of assessment centres was initially applied to military situations in the
German army and the War Office Selection Board of the British Army in 1960s. The basic purpose
of this method was to examine the candidates in the social situation, using the variety of
procedures and a number of assessors. Earlier, assessment centres were being used for executive
hiring but these days these centres are used for the purpose of evaluating supervisory or
executive potential.
An assessment centre is a central location where the managers may come together to participate
in job-related exercises, who are then evaluated by the trained observers.
An assessment centre evaluates the following:
(i) Communication skills

(ii) Interpersonal skills
(iii) Ability to plan and organise
(iv) Mental alertness
(v) Resistance to stress
(vi) Self-confidence, etc.
Objectives:
(i) To determine the training and development needs of the employees.
(ii) To provide the information for human resource planning.
(iii) To measure the potential of the employees for the different positions in the organisation.
(iv) To select the employees for entry level positions.
Advantages:
(i) Assessment centres help in determining the training and development needs of the
employees.
(ii) They provide data for human resource planning.
(iii) It can be used for the selection of candidates for the entry level positions.
(iv) In this method, all the candidates get equal opportunity to prove their merit.
(v) Rater’s personal bias is reduced as the employees are evaluated by a team of trained
evaluators under similar conditions.
(vi) The assessment is based on the direct observation of relatively large sample of the assesses
behaviours which provides more accurate information about them.
Disadvantages:
(i) Assessment centre is a time-consuming and expensive method.
(ii) The ratings of this method are said to be strongly influenced by the participant’s interpersonal
skills.

(iii) Raters tend to evaluate the quality of the individual’s social skills rather than the quality of
decisions themselves.
(iv) The candidates who receive a negative report from the assessment centre may feel
demoralised.
II. Human Resource Accounting:
From all the resources used in the business organisation, the most valuable resource is the human
resource because the efficiency of all the resources depend upon it. Like other assets, these can
also be measured in terms of money.
In human resource accounting, the money value is attached to the value of firm’s internal human
resources and its external customer goodwill. In human resource accounting, the performance
of the employees is judged in terms of cost incurred and contributions made by the employees.
Cost is measured in terms of:
(i) Expenditure on human resource planning,
(ii) Expenditure on recruitment and selection,
(iii) Expenditure on compensation,
(iv) Expenditure on training and development.
Contribution is measured in terms of:
(i) Money value of labour productivity,
(ii) Value added by human resources.
III. Behaviourally Anchored Rating Scale (BARS):
An approach that has received considerable attention by academics in past years involves BARS.
This method uses critical incidents to serve as anchor statements on the scale. A BARS rating
form, usually contains 6 to 10 specifically defined performance dimensions each with five or six
critical incident anchors. The dimensions have both negative and positive job- related critical
incidents. These scales combine major elements from the critical incident and adjective rating
scale approaches.
The appraiser rates the employees based on items along a continuum, but the points are example
of actual behaviour on the given job rather than general descriptions of traits. The enthusiasm
surrounding BARS grew from the belief that the use of specific behaviour, derived for each job
should produce relatively error-free and reliable ratings.
Although this promise has not been fulfilled, it has been argued that this may be partly due to
departures from careful methodology in the development of specific scales themselves rather
than to inadequacies in the concept. BARS, too, has also been found to be very time-consuming.
The research on BARS indicates that while it is far from perfect, it does tend to reduce rating
errors. Possibly, its major advantage stems from the dimensions generated rather than from any
particular superiority of behaviour over trait anchors.
The steps in developing BARS are as follows:
(i) Generating Critical Incidents – The job holders or supervisors are asked to illustrate some
specific critical incidents of effective and ineffective performance. The critical behaviours are
those which are essential for the effective performance of the job.
(ii) Development of Performance Dimensions – The critical incidents are then clustered into
smaller set of performance dimensions by these people. Each cluster or dimension is then
properly defined.
(iii) Reallocate Incidents – Another group of people, who are also aware of the concept of job,
then reallocate the original critical incidents. They are given the cluster’s definitions and the
critical incidents and are then asked to reallocate each incident to the cluster as they think fits
best.
(iv) Scaling the Incidents – The critical behaviours are then assigned the scales usually in numbers
with their description. The scale may range from 1 to 9 or from 1 to 7. This is generally done by
the second group.
(v) Development of Final Instruments – The result for arranging scale for different dimensions of
the job produces the vertical scale for each dimension. This scale is then used for the evaluation
of the performance of the employees.
IV. Management by Objectives (MBO):
It was Peter F. Drucker who first gave the concept of MBO to the world way back in 1954 when
his book The Practice of Management was first published. MBO is a philosophy of management
in which employees establish objectives through consultation with their superiors and then these
objectives are used as the basis for evaluation. MBO is a system involving a cycle that begins with
setting the organisation’s common goals and objectives.
The management concept as was conceived by Drucker, reflects a management philosophy which
values and utilises employee contributions. Application of MBO in the field of performance
appraisal is a recent thinking. The MBO process seems to be most useful with managerial
personnel and employees who have a fairly wide range of flexibility and self-control in their jobs.
Therefore, the Management by Objectives approach involves establishing performance goals

jointly by the superior and subordinate. For this programme to be effective, both superior and
subordinate must be actively involved in objective formulation and agree on the methods to be
used to assess performance.
The MBO programme involves:
(i) Defining key tasks for the subordinate and setting a limited number of objectives;
(ii) Establishing criteria for evaluation of objectives;
(iii) Determining dates for review of progress and making modifications in original objectives
during review, if necessary;
(iv) Having a final evaluation session for counselling and encouragement; and
(v) Setting objectives for the next cycle.
Problems:
(i) Too much paperwork is involved.
(ii) Setting too many objectives may create a problem of prioritisation.
(iii) May be difficult to establish measurable objectives for some jobs.
(iv) Too much emphasis on short-term performance and losing sight of long-term objectives.
(v) May be used by some supervisors as a control device that intimidates, rather than motivates
subordinates.
V. 360 Degree Feedback:
In this method of performance appraisal, information is collected from all persons around the
employees — superiors, subordinates, peers, and internal and external customers. Hence, the
title 360 degree feedback. The feedback is usually used for determining training and
development needs rather than the compensation revision. The appraiser, listed earlier,
complete survey questionnaires on the individual.
Computerised systems then compile all the feedback into individualised reports. These are
presented to then person being rated. Appraisers then meet with their supervisors and
sometimes with their subordinates, to share pertinent information for the purposes of
developing the self-improvement plans.
The most productive feature of this system is its ability to provide a diverse array of feedback.
The use of multi raters also provides a way to compensate faulty assessments that are sometimes
obtained from inexperienced and poorly performing executives.
Advantages:
(i) This system is more comprehensive as responses are gathered from multiple perspectives.
(ii) Quality of information received is better.
(iii) Level of biasness is also less since feedback is received from many persons.
(iv) Feedback from peers and others may increase employee self-development.
Disadvantages:
(i) The system is complex in combining all the responses.
(ii) If the employees feel that respondents have ganged up their feedback, it may cause
resentment among them.
(iii) The system requires training to work effectively.
(iv) Appraisers may not be accountable if their evaluations are anonymous.
Methods of Performance Appraisal

There are different methods of performance appraisal. Each method of performance appraisal
has its advantages and limitations. There is no single appraisal method accepted and used by all
organizations to measure their employees’ performance. Every organization chooses the method
of performance appraisal that best suits them. There are some traditional methods of
performance appraisal. Some modern methods of performance appraisal have evolved.
Wage and Salary Administration
Wage & salary administration is essentially the application of a systematic approach to the
problem of ensuring that employees are paid in a logical, equitable and fair manner.
In soundness of compensation management depends upon the amount of wage and salary paid

to an employee for a fair days work. Wage and salary is significant to most of the employees as
it constitutes a major share of their income "Pay" in one form or another is certainly one of the
main springs of motivations in our society 'Salary provides more than a means of satisfying the
physical need it provides recognition, a small of accomplishment. The term "wage" may be
defined as the remuneration paid by the employer for the services of hourly, daily, weekly and
fortnightly employees.
'Salary is defined as the remuneration paid to the clerical and managerial personnel employed
on monthly or annual basis'. This distinction between wage and salary does not seem to be valid
in these days of human resources approach where all employees are treated as human
resources and are viewed at par. Hence these two terms are used interchangeably. As such the
term wage or salary can be defined as thedirect remuneration paid to an employee
compensating in services to an organisation. Salary is also known as basic pay.
Significance of wage & salary administration:
Wage & salaries have two different purposes from point of employers & employees. Employers
perceive as a cost of business effort and attempt to reduce it. But they also realise that it is not
possible because of these reasons:
a) Wage& salary are essential to attract and retain an effective workforce.
b) Wage and salary are required to motivate, employees for positive attitudes and better
performance.
c )Employees have to be provided compensation for service rendered by them to

theorganisation.
d)Employees consider wage as a means for satisfying their need to maintain their standard. They
also want it equitable with similar skills for doing similar work.
Principles of Wage & Salary administration:
Wage & salary plans and policies should be sufficiently flexible.
Job evaluation must be done scientifically.
Wage & salary administration plans. Must always be consistent with overall organisation plans
&programmers. Wage& salary administration plans and programmes should be in conformity
with the social & economic objectives of the country like attainment of equality of income
distribution and controlling inflationarytrends. Wages& salary administration plans and
programmes should be responsive to the changing local and national conditions. The plans
should simply & expedite other administration processes
Objectives of wage & salary administration:

1. To acquire qualified and competentpersonnel:
Candidates decide upon their career in a particular organisation mostly on the basis of the
amount of remuneration the organisation offers. Qualified and competent people join the best-
paidorganisation. As such, the organisation should aim at payment of salaries at that level,
where they can attract competent and qualified people.
2. To retain the presentemployees:
If the salary level does not compare favourable with that of other similar organisation,
employees quit the present one and join other organisation. The organisation must keep the
wage & salary structure at the competitive level, with those of similar organisation
3. To secure internal and external equity:
Internal equity does mean payment of similar wages for similar jobs within the organisation.
External equity implies that payment of similar wages to similar jobs in comparable
organisations.
4.To ensure desired behavior:
Good rewards reinforce desired behaviour like performance, loyalty, accepting new
responsibilities and changes etc.
Other objectives
5.To keep labour and administrative costs in line with the ability of the organisation topay. To
project in public as progressive employers and to comply with the wagelegislations.
6.To pay according to the content and difficulty of the job and in tune with the effort and merit
of theemployee.
7.To facilitate pay roll administration of budgeting and wage and salarycontrol.
8.To simplify collective bargaining procedures andnegotiations.
9.To promote organisationfeasibility.
Systems to Achieve the Objectives:
The above mentioned objectives are achieved by the use of the following systems:
Job Evaluation:
All jobs will be analysed and graded to establish the pattern of internal relationships. It is the
process of determining relative worth of jobs, It includes selecting suitable job evaluation
techniques, classifying jobs into various categories and determining relative value of jobs in
various categories.
Wage and salary ranges:

Overall salary range for all the jobs in an organisation is arranged. Each job grade will be assigned
a salary range. These individual salary ranges will be fitted into an overall range.
Wage and salaryadjustments:
Overall salary grades of the organisation may be adjusted based on the data and information
collected 'about the salary levels of similar organisations. Individual salary Ievel may also be
adjusted based on the performance of the individual employees.
The Elements of Wage and Salary System:
Wage and .salary system should have relationship with the performance, satisfaction and
attainment of goals of an individual. Following are the elements of wage and salary system.
Identifying the available salary opportunities, their costs, estimating the worth of its members
of these salary opportunities and communicating them toemployees.
Relating salary to needs and goals.
Developing quality quantity and time standards relating to work and goals.
Determining the effort necessary to achievestandards.
Measuring the actualperformance.
Process of Determinations of wages:
Determination of equitable wage and salary structure in one of the most important phase of
Employer-employee relations. The primary objective of wage and salary administration
programme is that each employee should be equitably compensated for the service rendered
on the basis of:
-The nature of job.
- The present worth of that type of job in other organisation,and
- The effectiveness with which the individual performs thejob.
Chart 5.1
Steps Involved in Determination of Wage Rate

Wage Survey:
After the relative worth of jobs in the organisation has been determined by job evaluation, the
actual wages to be paid to employees
must be determined taking into consideration wages of similar job in other organisations.
A major factor in taking such decisions is the survey of wages of similar jobs in other enterprises
in the same region and in the same industry. The purpose of wage survey in to determine the
extent to which the organisation's pay scale are like those of other enterprises in the region. So
they must be taken into consideration while fixing the wages for different jobs in an
organisation. The wages and salary practices of other organisation have an important impact on
the employment, retention and morale of the personnel.
If external alignment is lacking, the organisation will not be able to retain or attract capable
employees fromoutside.
Normally employer's choose the average wage level so that employees do not leave, even it
must be above the average level.
Method of wage fixation:

In India, several methods of wage fixation are used. These methods include wage boards, job
evaluation, collective bargaining and legislation.
1.Wage Boards:
The government of India, acting upon the recommendations of the First Five-Year Plan,
appointed wage boards for fixing wages. The first wage board was set up in 1957 for the cotton
textile industry. The wage board are tripartite in nature, with independent members and a
chairman. It was actually the Committee on Fair Wages that recommended the setting up of
wage boards for fixing wages. Wage board were set up because workers were not satisfied with
the method of compulsory adjudication for wage determination not only because it was a
lengthy procedure but also because they had no role to play in determining wages.
2. Job evaluation:
Job evaluation is another method of wage fixation. Job analysis explains the duties of a job,
authority relationships, skills, required, conditions of work, and additional relevant information.
Job evaluation, on the other hand, uses the information in job analysis to evaluate each job-
valuing its components and ascertaining relative job worth. It involves a format and systematic
comparison of jobs in order to determine the worth of one job relative to another, so that a
wage or salary hierarchy results. So this process evaluate thejobs in anorganization.
Job evaluation aims to assess the relative worth of a given collection of duties and
responsibilities to the organization. It helps the management to maintain high levels of
employee productivity and employee satisfaction. In the absence of proper job evaluation, it is
very likely that jobs would not be properly priced. Consequently, high valued jobs may receive
less pay than low-valued jobs. The employees realizing this may be come dissatisfied, leave the
organization, reduce their efforts or may adopt other modes of behaviour detrimental to the
organization. Therefore, organizations pay a great deal of attention to the relative worth of jobs
so that they are able to determine what a particular job should be paid. A person is paid for
what he brings to a job- his education, training andexperience.
3.Collective bargaining:
Bi-partite union management negotiations determine the wages. It is common in private and
public sector enterprises.
4.Wage legislation:
In India workers have always needed state protection against exploitation. As such, the state
has enacted a number of legislations to ensure regular, expeditious, equitable and minimum
payment of wages and bonus tow workers. There are four main acts that comprise the legal
framework relating to wagelegislation.

a) The Payment of Wages Act,1936.
b) The Minimum Wages Act,1948.
(c) The Equal Remuneration Act,1976.
(d) The Payment of Bonus Act, 1965.
a)The payment of Wages Act, 1936. The payment of wages act, 1936 regulates the payment of
wages to certain classes of persons employed in the industry. It also stipulated the payment for
working overtime and deduction of wages. Section 312 of the Act6 makes it obligatory for the
employers to make payment of wages, fix the wage period and time of payment. The Act
authorizes the employers to make deductions of fines, for absence from duty, damage or loss
of goods, money, house accommodation provided by the employer, deductions for such
benefits/amenities and services supplied by the employer, for recovery of advances or for
adjustment of over payment of wages, income tax at source, subscription to and for repayment
of advances from PF, payment to a co-operative society and deduction for written authorization
of the employee.
b)The Minimum Wages Act, 1948. The Minimum Wages Act aimsto:
Provide minimum (statutory) wages for scheduledemployments.

Eliminate chances of exploitation of labour through payment of very low and sweatingwages.
Provide for maximum daily working hours, weekly rest andovertime.
The rates fixed under the Act prevail up on the rates fixed under the award oragreement.The
Act, defines wage as all remuneration which are capable of being expressed in terms of money
and, which would, if the terms of the contract of employment, expressed or implied, are
fulfilled, be payable to a person employed in respect of his employment or of work-done in such
employment. But it does not include value of accommodation, supply of light, water medical
attendance, any other amenity or any service, excluded by general or special order of the
government, any contribution by employer towards provident fund or pension fund or under
any scheme of social justice, any travel allowance or value of travel concession, any sum to meet
special expenses entailed on him by the nature of the employment or, any gratuity payable on
discharge from service.
c)The Equal Remuneration Act, 1976. This-act emphasizes on equal payment of wage to men,
women wage earners who are engaged in identical employment. The act attracts punishment
to employers for violation of the provisions of the Act. It for prevention of discrimination, on
grounds of sex against women in matter ofemployment.

d)T he Payment of Bonus Act, 1965. The Payment of Bonus Act, 1965 provides for payment of
bonus to workers in all establishments/factories in which 20 or more persons are employed on
any day, covered in the related accounting year. The Act lays down a minimum eight and one-
third percent and a maximum of twenty per cent of pay. The minimum bonus is payable, even
though accompany has not made profits during the related accounting year. Although, the act
aims to ensure payment of bonus every year to a factory worker, it
UNIT – 4
Industrial Disputes and related Concepts
Some of the major industrial dispute settlement machinery are as follows:

1. Conciliation
2. Court of Inquiry
3. Voluntary Arbitration
4. Adjudication.
This machinery has been provided under the Industrial Disputes Act, 1947. It, in fact, provides a
legalistic way of setting the disputes. As said above, the goal of preventive machinery is to create
an environment where the disputes do not arise at all.
Even then if any differences arise, the judicial machinery has been provided to settle them lest
they should result into work stoppages. In this sense, the nature of this machinery is curative for
it aims at curing the aliments.
This machinery comprises following organs:
1. Conciliation
2. Court of enquiry
3. Voluntary arbitration
4. Adjudication (Compulsory arbitration).
1. Conciliation:
Conciliation, is a form of mediation. Mediation is the act of making active effort to bring two
conflicting parties to compromise. Mediation, however, differs from conciliation in that whereas
conciliator plays only a passive and indirect role, and the scope of his functions is provided under
the law, the mediator takes active part and the scope of his activities are not subject to any
statutory provisions.
Conciliation is the “practice by which the services of a neutral party are used in a dispute as a

means of helping the disputing parties to reduce the extent of their differences and to arrive at
an amicable settlement of agreed solution.”
The Industrial Disputes Act, 1947 provides for conciliation, and can be utilised either by
appointing conciliation officers (permanently or for a limited period) or by constituting a board
of conciliation. This conciliation machinery can take a note of a dispute or apprehend dispute
either on its own or when approached by either party.
With a view to expediting conciliation proceeding, time-limits have been prescribed—14 days in
the case of conciliation officers and two months in the case of a board of conciliation, settlement
arrived at in the course of conciliation is binding for such period as may be agreed upon between
the parties or for a period of 6 months and with continue to be binding until revoked by either
party. The Act prohibits strike and lock-out during the pendency of conciliation proceedings
before a Board and for seven days after the conclusion of such proceedings.
Conciliation Officer:
The law provides for the appointment of Conciliation Officer by the Government to conciliate
between the parties to the industrial dispute. The Conciliation Officer is given the powers of a
civil court, whereby he is authorised to call the witness the parties on oath. It should be
remembered, however, whereas civil court cannot go beyond interpreting the laws, the
conciliation officer can go behind the facts and make judgment which will be binding upon the
parties.
On receiving information about a dispute, the conciliation officer should give formal intimation
in writing to the parties concerned of his intention to commence conciliation proceedings from
a specified date. He should then start doing all such things as he thinks fit for the purpose of
persuading the parties to come to fair and amicable settlement of the dispute.
Conciliation is an art where the skill, tact, imagination and even personal influence of the
conciliation officer affect his success. The Industrial Disputes Act, therefore, does not prescribe
any procedure to the followed by him.The conciliation officer is required to submit his report to
the appropriate government along with the copy of the settlement arrived at in relation to the
dispute or in case conciliation has failed, he has to send a detailed report giving out the reasons
for failure of conciliation.
The report in either case must be submitted within 14 days of the commencement of conciliation
proceedings or earlier. But the time for submission of the report may be extended by an
agreement in writing of all the parties to the dispute subject to the approval of the conciliation
officer.
If an agreement is reached (called the memorandum of settlement), it remains binding for such
period as is agreed upon by the parties, and if no such period is agreed upon, for a period of six
months from the date on which the memorandum of settlement is signed by the parties to the

dispute, and continues to be binding on the parties after the expiry of the period aforesaid, until
the expiry of two months from the date on which a notice in writing of an intention to terminate
the settlement is given by one of the party or parties to the settlement.
Board of Conciliation:
In case Conciliation Officer fails to resolve the differences between the parties, the government
has the discretion to appoint a Board of Conciliation. The Board is tripartite and ad hoc body. It
consists of a chairman and two or four other members.
The chairman is to be an independent person and other members are nominated in equal
number by the parties to the dispute. Conciliation proceedings before a Board are similar to those
that take place before the Conciliation Officer. The Government has yet another option of
referring the dispute to the Court of Inquiry instead of the Board of Conciliation.
The machinery of the Board is set in motion when a dispute is referred to it. In other words, the
Board does not hold the conciliation proceedings of its own accord. On the dispute being referred
to the Board, it is the duty of the Board to do all things as it thinks fit for the purpose of inducing
the parties to come to a fair and amicable settlement. The Board must submit its report to the
government within two months of the date on which the dispute was referred to it. This period
can be further extended by the government by two months.
2.Court of Inquiry:
In case of the failure of the conciliation proceedings to settle a dispute, the government can
appoint a Court of Inquiry to enquire into any matter connected with or relevant to industrial
dispute. The court is expected to submit its report within six months. The court of enquiry may
consist of one or more persons to be decided by the appropriate government.
The court of enquiry is required to submit its report within a period of six months from the
commencement of enquiry. This report is subsequently published by the government within 30
days of its receipt. Unlike during the period of conciliation, workers’ right to strike, employers’
right to lockout, and employers’ right to dismiss workmen, etc. remain unaffected during the
proceedings in a court to enquiry.
A court of enquiry is different from a Board of Conciliation. The former aims at inquiring into and
revealing the causes of an industrial dispute. On the other hand, the latter’s basic objective is to
promote the settlement of an industrial dispute. Thus, a court of enquiry is primarily fact-finding
machinery.
3.Voluntary Arbitration:
On failure of conciliation proceedings, the conciliation officer many persuade the parties to refer
the dispute to a voluntary arbitrator. Voluntary arbitration refers to getting the disputes settled

through an independent person chosen by the parties involved mutually and voluntarily.
In other words, arbitration offers an opportunity for a solution of the dispute through an
arbitrator jointly appointed by the parties to the dispute. The process of arbitration saves time
and money of both the parties which is usually wasted in case of adjudication.
Voluntary arbitration became popular as a method a settling differences between workers and
management with the advocacy of Mahatma Gandhi, who had applied it very successfully in the
Textile industry of Ahmedabad. However, voluntary arbitration was lent legal identity only in
1956 when Industrial Disputes Act, 1947 was amended to include a provision relating to it.
The provision for voluntary arbitration was made because of the lengthy legal proceedings and
formalities and resulting delays involved in adjudication. It may, however, be noted that
arbitrator is not vested with any judicial powers.
He derives his powers to settle the dispute from the agreement that parties have made between
themselves regarding the reference of dispute to the arbitrator. The arbitrator should submit his
award to the government. The government will then publish it within 30 days of such submission.
The award would become enforceable on the expiry of 30 days of its publication.
Voluntary arbitration is one of the democratic ways for setting industrial disputes. It is the best
method for resolving industrial conflicts and is a close’ supplement to collective bargaining. It not
only provides a voluntary method of settling industrial disputes, but is also a quicker way of
settling them.
It is based on the notion of self-government in industrial relations. Furthermore, it helps to curtail

the protracted proceedings attendant on adjudication, connotes a healthy attitude and a
developed outlook; assists in strengthening the trade union movement and contributes for
building up sound and cordial industrial relations.
4. Adjudication:
The ultimate remedy for the settlement of an industrial dispute is its reference to adjudication
by labour court or tribunals when conciliation machinery fails to bring about a settlement.
Adjudication consists of settling disputes through intervention by the third party appointed by
the government. The law provides the adjudication to be conducted by the Labour Court,
Industrial Tribunal of National Tribunal.
A dispute can be referred to adjudication if hot the employer and the recognised union agree to
do so. A dispute can also be referred to adjudication by the Government even if there is no
consent of the parties in which case it is called ‘compulsory adjudication’. As mentioned above,
the dispute can be referred to three types of tribunals depending on the nature and facts of
dispute in questions.
These include:

(a) Labour courts,
(b) Industrial tribunals, and
(c) National tribunals.
The procedure, powers, and provisions regarding commencement of award and period of
operation of award of these three bodies are similar. The first two bodies can be set up either by
State or Central Government but the national tribunal can be constituted by the Central
Government only, when it thinks that the adjudication of a dispute is of national importance.
These three bodies are into hierarchical in nature. It is the Government’s prerogative to refer a
dispute to any of these bodies depending on the nature of dispute.
(а) Labour Court:

A labour court consists of one person only, who is normally a sitting or an ex-judge of a High
Court. It may be constituted by the appropriate Government for adjudication of disputes which
are mentioned in the second schedule of the Act.
The issues referred to a labour court may include:
(i)The propriety or legality of an order passed by an employer under the Standing Orders.
(ii) The application and interpretation of Standing Orders.
(iii) Discharge and dismissal of workmen and grant of relief to them.
(iv) Withdrawal of any statutory concession or privilege.
(v) Illegality or otherwise of any strike or lockout.
(vi) All matters not specified in the third schedule of Industrial Disputes Act, 1947. (It deals with
the jurisdiction of Industrial Tribunals).
(b) Industrial Tribunal:

Like a labour court, an industrial tribunal is also a one-man body. The matters which fall within
the jurisdiction of industrial tribunals are as mentioned in the second schedule or the third
schedule of the Act. Obviously, industrial tribunals have wider jurisdiction than the labour courts.
Moreover an industrial tribunal, in addition to the presiding officer, can have two assessors to
advise him in the proceedings; the appropriate Government is empowered to appoint the
assessors.
The Industrial Tribunal may be referred the following issues:

1. Wages including the period and mode of payment.
2. Compensatory and other allowances.
3. Hours of work and rest intervals.
4. Leave with wages and holidays.
5. Bonus, profit sharing, provident fund and gratuity.
6. Shift working otherwise than in accordance with the standing orders.
7. Rule of discipline.
8. Rationalisation.
9. Retrenchment.
10. Any other matter that may be prescribed.
(c) National Tribunal:

The Central Government may constitute a national tribunal for adjudication of disputes as
mentioned in the second and third schedules of the Act or any other matter not mentioned
therein provided in its opinion the industrial dispute involves “questions of national importance”
or “the industrial dispute is of such a nature that undertakings established in more than one state
are likely to be affected by such a dispute”.
The Central Government may appoint two assessors to assist the national tribunal. The award of
the tribunal is to be submitted to the Central Government which has the power to modify or
reject it if it considers it necessary in public interest.
trade union is a combination of persons. Whether temporary or permanent, primarily for the
purpose of regulating the relations between workers and employers or between workers for
imposing restrictive conditions on the conduct of any trade or business and includes the
federations of two or more trade unions as per Sec. 2 (6) Trade Unions Act, 1926.
TRADE UNIONS :
“A Trade Union is an organisation of workers, acting collectively, who seek to protect and
promote their mutual interests through collective bargaining”.
Objectives:
Following are the objectives of trade unions:

1. Ensure Security of Workers:
This involves continued employment of workers, prevent retrenchment, lay off or lock-outs.
Restrict application of “fire” or dismissal or discharge and VRS.
2. Obtain Better Economic Returns:
This involves wages hike at periodic intervals, bonus at higher rate, other admissible allowances,
subsidized canteen and transport facilities.
3. Secure Power To Influence Management:
This involves workers’ participation in management, decision making, role of union in policy
decisions affecting workers, and staff members.
4. Secure Power To Influence Government:
This involves influence on government to pass labour legislation which improves working
conditions, safety, welfare, security and retirement benefits of workers and their dependents,
seek redressal of grievances as and when needed.
Functions of a Trade Union:

The important basic functions of unions listed by National Commission on labour are:
(i) To secure fair wages to workers.
(ii) To safeguard security of tenure and improve conditions of service.
(iii) To enlarge opportunities for promotion and training.
(iv) To improve working and living conditions.
(v) To provide for educational, cultural and recreational facilities.
(vi) To co-operate in and facilitate technological advance by broadening the understanding of

workers on its underlying issues.
(vii) To promote identity of interests of workers with their industry.
(viii) To offer responsive co-operation in improving levels of production and productivity,

discipline and high standards of quality and
(ix) To promote individual and collective welfare.
Trade Union as an Organisation:

Most of the workers are members of any one of the trade unions.
There are many reasons of membership and some of which are given below:
(a) Security of employment and protection against calamity of accident, death and secure social
security cover after retirement.
(b) Meeting companionship and affiliation need and improve one’s influence with management.
(c) To get a common platform—to air one’s views, aims ideas and feelings and obtain recognition
and status among fellow workers.
(d) Make use of the “principle of unity” for the purpose of securing good working conditions, high
economic compensations, better career prospects and welfare needs.
(e) Restrict management actions which are against the interest of workers.
UNFAIR LABOUR PRACTICES
I. On the part of employers and trade unions of employers
1. To interfere with, restrain from, or coerce, workmen in the exercise of their right to organise,
form, join or assist a trade union or to engage in concerted activities for the purposes of collective
bargaining or other mutual aid or protection, that is to say-
a. Threatening workmen with discharge or dismissal, if they join a trade union;

b. Threatening a lock-out or closure, if a trade union is organised;
c. Granting wage increase to workmen at crucial periods of trade union organisation, with a view
to undermining the efforts of the trade union organisation.
2. To dominate, interfere with or contribute support, financial or otherwise, to any trade union,
that is to say-
a. an employer taking an active interest in organising a trade union of his workmen; and
b. an employer showing partiality or granting favour to one of several trade unions attempting
to organise his workmen or to its members, where such a trade union is not a recognised trade
union.
3. To establish employer sponsored trade unions of workmen.
4. To encourage or discourage membership in any trade union by discriminating against any

workman, that is to say-
(a) Discharging or punishing a workman, because he urged other workmen to join or organise a

trade union
(b) Discharging or dismissing a workman for taking part in any strike (not being a strike which is
deemed to be an illegal strike under this Act);
(c) Changing seniority rating of workmen because of trade union activities;
(d) Refusing to promote workmen to higher posts on account of their trade union activities;
(e) Giving unmerited promotions to certain workmen with a view to creating discord amongst
other workmen, or to undermine the strength of their trade union;
(f) Discharging office-bearers or active members of the trade union on account of their trade
union activities.
5. To discharge or dismiss workmen-
a) By way of victimisation;
b) Not in good faith, but in the colourable exercise of the employer’s rights
c) By falsely implicating a workman in a criminal case on false evidence or on concocted
evidence;
d) For patently false reasons;
e) On untrue or trumped up allegations of absence without leave
f) In utter disregard of the principles of natural justice in the conduct of domestic enquiry or with
undue haste;
g) For misconduct of a minor or technical character, without having any regard to the nature of
the particular misconduct or the past record or service of the workman, thereby leading to a
disproportionate punishment.
6. To abolish the work of a regular nature being done by workmen, and to give such work to
contractors as a measure of breaking a strike.
7. To transfer a workman mala fide from one place to another, under the guise of following
management policy.
8. To insist upon individual workmen, who are on a legal strike to sign a good conduct bond, as
a pre-condition to allowing them to resume work.
9. To show favouritism or partiality to one set of workers regardless of merit.
10. To employ workmen as “badlis”, casuals or temporaries and to continue them as such for
years, with the object of depriving them of the status and privileges of permanent workmen.
11. To discharge or discriminate against any workman for charges or testifying against an
employer in any enquiry or proceeding relating to any industrial dispute.
12. To recruit workmen during a strike which is not an illegal strike.
GRIEVANCE HANDLING PROCESS

The grievances are very harmful and these need proper and timely redressal. If not then there
can be many fold problems in the industry. For proper handling of grievances there is need for
an adequate procedure that can assign the responsibility step-by-step for effective
management of grievances.
Grievance handling procedure is a systematic way of handling the grievances in which step-wise
the responsibility for handling is assigned.
The steps involved in employee grievances handling procedure are:-
1. Acknowledge Dissatisfaction
2. Define the Problem
3. Identify and Collect the Facts
4. Carry out Analyse and Decide
5. Timely Action
6. Taking Decision
7. Implementing the Decision
8. Follow up Action
9. Review and Modification, if Need be
10. Arbitration.
The procedure to deal with the grievances in various organisations can be studied under the
following heads:-
1. Open Door Policy
2. Step-Ladder Policy
3. Grievance Handling Committee.
1. Legal Provision for Grievance Management in Indian Industry 2. Pre-Requisites of a Sound

Grievance Handling Procedure 3. Advantages of Grievances Handling Procedure 4. Disadvantages
of Grievances Handling Procedure 5. Need for Grievances Handling Procedure.
Employee Grievances Handling Procedure: How to Handle Your Employee’s Grievances?

Employee Grievances Handling Procedure – With Legal Provision for Grievance Management in
Indian Industry
In this process a set of activities are to be carried in sequence for effective handling or managing
grievances. Grievances are the dissatisfaction feeling of the individual. The dissatisfaction of
employees gives strong impacts on individual, job, performance and future. In the beginning it is
very small but later on the adverse impacts are not bearable.
It is in the similar way that a person with disease cannot continue for a long time, employees with
grievances cannot continue with the employment for long. It is to be taken care of at the earliest
so that damages can be removed or minimized. The sincere efforts should be put to check the
grievances in the beginning itself. Prevention is always better than cure.

Responsible manager should immediately find out all grievances, their causes and must take
appropriate steps to avoid the causes. The bad effects should be avoided. It should not hurt the
feelings of employees. They should remain satisfied, loyal and committed to their work. It is very
important for betterment of everyone concerned. Effective grievance management is an
important function of HRM in an organisation.
The managers should take the following steps for prevention/solution of grievances effectively:
Step 1. Prompt Action:
As soon as the feelings of dissatisfaction felt the cause of it should be identified and resolved.
The manager expert in grievance handling must be trained for effectively and timely managing
grievances. This would avoid the adverse impacts on employees, their performance and
organisation as well. So the prompt actions are very essential.
Step 2. Acceptance of Grievances:
The manager must accept the grievances forwarded by the employees and must respect the true
and real feelings of the employees. Acceptance of grievances would bring confidence in
employees implies that the manager is interested for solution of the grievance without any bias.
To some extent the feelings of dissatisfaction would be reduced and avoid frustration. In turn the
working environment would be conducive.
Step 3. Collection of Information:
Whether the grievances reported or not the management should take the preventive steps. The
approach should be proactive. Before grievances, the management must develop the practice to
interact, discuss, and share, and collect information regarding different issues of differences. If
reported, in this case the information should be collected timely regarding nature and causes of
grievances. This would help in prevention and redressal of grievances of employees.
Step 4. Cross Examining the Causes of Grievance:
Once the grievances are reported and information regarding nature and causes of grievances
collected. This information are to be cross-examined. The management should have the clear
understanding regarding causes. Accordingly remedial actions should be taken immediately to
prevent repetition of the grievance and damages further.
Step 5. Logical Decision Making:
On being identified the causes of grievances, the manager must generate a number of options
for course of action. According to the policies and practices of the industry the best option is to
be identified. The person liking of the managers or individuals should be avoided in making
rational and more effective decision.

Step # 6. Implementation and Review of Decision:
The rational decision the management should not wait for a long time. The concerned parties
should be taken into confidence and implement as early as possible. If not done so in right time,
there is no use of putting the efforts for grievance prevention. Right and timely decision would
be more effective. The decisions should be reviewed time-to-time to keep in line with the working
of the company. Further, grievances can be avoided also.
An effective grievance handling/management process involved these steps would give the right
approach to the grievances. First of the grievance would be checked in the beginning itself.
Secondly, if at all the grievances have taken place despite of sincere efforts; the grievances would
be redressed and would prevent these in future also. These steps are very essential for effective
management of grievances. Under this situation the employees would ventilate their grievances
freely and redressal would become very easy if at all grievances are reported.
Legal Provision for Grievance Management in Indian Industry:

Government of India has made legal provisions under different labour laws for Indian industries.
The main Acts ate Industrial Employment (Standing Orders) Act, 1946, Industrial Disputes Act,
1947, amended in 1965, and Factories Act, 1948. At present, these three labour laws are dealing
with grievances of employees working in industries. Under Factories Act, 1948 there is provision
for the appointment of a welfare officer in every factory where 500 or more workers are
employed.
Welfare officers lode after complaints and grievances of workers relating to their workplace. He
looks into the requirements of workers and ensures that there is proper implementation of the
existing Factories Act, 1948. There are provisions regarding grievances or disputes relating to
discharge, dismissal, lay off and retrenchment for relief under Industrial Disputes Act, 1947 which
was amended later on in 1965. On these issues many times the cases have been decided by
Supreme Court of India and High Courts also.
Further, under The Industrial Employment (Standing Orders) Act, 1946, there is provision that
requires that standing orders are to be framed by every establishment employing 100 or more
workers. Relating to this the provision is for redressal of grievances of workers against employers
or their agents for unfair treatment and wrongful actions taken in the establishment.
However, the legal provisions regarding grievances have not been implemented properly by the
employers. They are not fair in their approach. In organised sectors also the welfare officers are
not much interested to implement the provisions. They are not well committed to their jobs and
sometime they play dual roles in the establishment.
Some of the establishments in public sector are doing well in this regard. Other side the larger
establishments in private sectors are doing well in redressal of grievances of employees. It is
unfortunate on the part of public sector establishments for unsatisfactory progress in case of

grievance handling.
Employee Grievances Handling Procedure – Procedures of Grievance Handling Suggested by

Experts: Open Door Policy, Step-Ladder Policy and Grievances Handling Committee
The grievances are very harmful and these need proper and timely redressal. If not then there
can be many fold problems in the industry. For proper handling of grievances there is need for
an adequate procedure that can assign the responsibility step-by-step for effective management
of grievances. Grievance handling procedure is a systematic way of handling the grievances in
which step-wise the responsibility for handling is assigned.
It is a formal process of presentation of grievances and handling the grievances for redressal. It
can be said that it a formal communication process between the frustrated employees and
management for settlement of their grievances. The main topic is there that what should be
procedure for different types of organisations.
There are small, medium, and large sizes of organisations. The concern is that one procedure may
not be suitable for all organisations. To deal with this situation the academicians and industrialists
thought for different procedures for different sizes of organisations.
The main features of grievance and grievance handling are the following:
(a) Differences, conflicts and grievances are essential aspect of industrial life everywhere.
(b) It is essential to bring the grievance to the notice of management for settlement
(c) All these cannot be eliminated through grievance handling but can be controlled to a good
extent
(d) Redressing of grievances relieves employees from frustration and helps in improving
relationship, commitment level, performance and working environment.
(e) It leads to enhance overall effectiveness in business, profitability, leader position and image.
The differences/conflicts or grievances can be brought to the knowledge of authority for

settlement and can be done through direct observation, suggestion boxes, exit interview,
employees counselling, grievance handling procedure, frequent interaction with employees and
other methods.
Further, the experts suggested the different procedures to deal with the grievances in various
organisations and these are the following:
1. Open door policy.

2. Step-ladder policy.
3. Grievance handling committee.
Procedure 1. Open Door Policy:
According to the name of the policy, it is clear that there is restriction on employees to present
their grievances and get solution to their grievances. The doors of the top management of the
company are kept opened. The aggrieved employee is free to meet and express their grievances
to the top executives of the organisation and get his grievances redressed.
This open door policy for settlement of grievances is suitable for small organisations. The top
executives are directly in touch with the employees and know them personally. According to the
small size of the organisation this is useful and accepted by such organisation. It takes very less
time and gives timely and proper settlement of grievances. This policy is not suitable for large
organisation.
Procedure # 2. Step-Ladder Policy:
This policy is used by the medium and large size of organisations. The employees are more in
numbers and the executives are also busy with their tasks. They cannot spare time for everyone
frequently for grievances redressing. A policy is suggested and that includes steps. It is called step
ladder policy.
The aggrieved employee has to follow a step-by-step procedure for presenting and getting his
grievance redressed. In this policy, whenever an employee is dissatisfied he can present his
problem to his immediate supervisor. The immediate supervisor would look into the grievances
and would give the solution within shortest period.
If not satisfied with superior’s action then the supervisor or he can present the grievance to his
department head. The departmental head and would lode into the grievances and give the
decision as early as possible. If he feels he can discuss with the grievance committee formed for
this purpose. The grievance committee has the representatives of management and employees
as well.
If this step has not given the solution then it may be referred to the top or chief executive of the
organisation. If he also fails in his attempt for redressing the grievances then it is referred to the
voluntary arbitration where the decisions of the arbitrator would be a binding on both the
parties. In this the time limit for different authorities for redressing is not specified. It may vary
from organisation-to-organisation with die interest to redress as early as possible.
Procedure # 3. Grievance Handling Committee:
The concept of grievance handling committee was suggested by the experts for handling of

grievances of employees in an organisation. In this concept, the management has to appoint a

grievance committee for redressing of grievances. In this committee the representatives of
management and employees are appointed in equal number.
The cases of grievances can be referred for this committee for settlement. Under model
grievance handling procedure there is provision for grievance committee under step 3. The
managers refer the cases for recommendations to the committee. This can give suggestions to
the management in redressing the grievances.
After independence the efforts were put sincerely for fixing the procedure for redressing the
grievances in Indian industry. Indian Labour Conferences were conducted and in its 16th
conference a model procedure for redressing of grievances was recommended for industries in
India.
Under it the provisions were made for appointment of workers’ representatives in each
department and they would deal the grievances in the first step. The Model Grievance Procedure
discussed in detail all the steps to be followed for redressing grievances.
These steps are explained in detail below:
Step 1:
In the first step when an employee feels aggrieved then he presents his grievance to
departmental representative, who is appointed as a representative of management. He has to
give his answer within 48 hours/two days. He would give his decision to the aggrieved party.
Step 2:
In this step when the departmental representative failed to give the solution or has not taken
any decision, the aggrieved employee can present his grievance to head of the department where
he is working. The head of department looks into the grievances when submitted to him and give
his decision within 3 days from the date of submission of grievance.
Step 3:
When under step two the head of the department gives the decision and aggrieved employee is
not satisfied he can take the grievance to Grievance Committee. Within 7 days from the date of
submission of grievance, the Grievance Committee makes its recommendations to the manager
who submitted grievance to the committee.
The decision of top management on the basis of report of Grievance Committee would be
communicated to the aggrieved employee within 3 days from the date of receipt of report.
Further, if the aggrieved employees not satisfied then again appeal can be made to the
management for revision. On appeal for revision of decision, the management must give the
decision to the aggrieved employee within seven days from the date of appeal.
Step 4:

In this step when aggrieved employee is not satisfied from the decision of top management on
grievance redressing, the remains unsolved and he can refer this case for redressing to voluntary
arbitration. The decisions of the arbitrator would be a binding on both the parties under law.
The model grievance handling procedure provides guidelines to the company for redressing of
the employees grievances. The necessary changes if needed the organisation can make and suit
to their requirements. This contributes in maintaining a formal communication pattern between
employees and management for redressing of grievances.
Employee Grievances Handling Procedure – Steps Involved in Grievance Handling as Suggested

by Michael J. Jucius
Any discontent or dissatisfaction with any aspect of the organisation is called as grievance. In
case, when a complaint remains unattended and the employee concerned feels a lack of justice
and fair play, then the dissatisfaction grows and assumes a status of grievance.
Beach defines grievance as, “Grievance is any dissatisfaction or feeling of injustice in connection
with one’s employment situation that is brought to the notice of the management.”
Prof. Jucius opines “Grievance is any discontent or dissatisfaction, whether expressed or not,
whether valid or not, arising out of anything connected with the company that an employee
thinks, believes or even feels is unfair, unjust or inequitable.” Dale Yoder states that “Grievance
is a written complaint filed by an employee and claiming unfair treatment.”
Keith Davis opines “Grievance is any real or imagined feeling of personal injustice which an
employee has, concerning his employment relationship.”
International Labour Organisation defines grievance as, “Grievance is a complaint of one or more
workers in respect of wages, allowances, conditions of work and interpretation of service
stipulations, covering such areas as overtime, leave, transfer promotion, seniority, job
assignment and termination of service.”
Grievance handling essentially requires a very systematic approach. Obviously, irrespective of the
type of grievance redressal machinery or procedure, certain basic steps must be taken.
Michael J. Jucius suggests the following steps:
(i) Defining, describing or expressing the nature of the grievances as clearly and fully as possible;
(ii) Gathering all facts that serve to explain when, how, where, to whom, and why the grievance
occurred;
(iii) Establishing tentative solutions or answers to the grievance;
(iv) Gathering additional information to check the validity of the solutions and thus ascertain the

best possible solution;
(v) Applying the solution; and
(vi) Following up the case to see that it has been handled satisfactorily and the trouble has been
eliminated,
It is very important to settle grievances (i) promptly, (ii) as near as possible to the point of origin,
(iii) on merit only, (iv) with as many facts as possible, and (v) with an attitude of mutual
confidence and respect- Hence it is useful to adopt a systematic methodical procedure for
grievance redressal.
Employee Grievances Handling Procedure – With Pre-Requisites of a Sound Grievance Handling

Procedure
The formal mechanism adopted for dealing with dissatisfaction among the workers is called the
grievances handling procedure. In simple words, it is as a formal system of several steps through
which affected employee can take his grievance to successively higher levels of management for
redressal. It is also a means available to management to keep a check or relevant diagnostic data
on the state of the organisation’s health.
In a large organisation a grievance handling procedure plays crucial role because a large
organisation has numerous personnel and many different levels due to which the manager is not
in a position to keep a personal check on each individual or be engaged in every aspect of the
working of the organisation.
On the other hand, a small organisation, communication, knowledge and contact is possible to a
much greater extent, thus reducing the need for a formal grievance procedure.
Grievance Handling Procedure :

Grievance handling procedure is necessary for any organisation for many reasons.
Some of which are as under:
1. Check on the Arbitrary Actions:
It serves as a check on the arbitrary actions of the management the reason is supervisors know
that employees are likely to see through it that their protest does reach the higher management.
2. An Outlet:
It serves as an outlet for employee gripes, discontent and frustrations.
3. Submission of Grievances:

The management has complete authority to operate the business as it sees fit subject, of course,
to its legal and moral obligations and the contracts it has entered into with its workers or their
representative trade uncoil. But if the trade union or the employees do not like the way the
management functions, they can submit their grievance in accordance with the procedure laid
down for that purpose.
4. To Check the Grievances Assuming Explosive Position:
Most grievances seriously disturb the employees. This may affect their morale, productivity and
their willingness to cooperate with the organisation. If an explosive situation develops, this can
be promptly attended to if a grievance handling procedure is already in existence.
5. To Settle the Unsettled Complaint:
It is not possible that all the complaints of the employees would be settled by first-time
supervisors, for these supervisors may be having had a proper training for the purpose and they
may lack authority. Moreover, there may be personality conflicts and other causes as well.
Pre-Requisites of a Sound Grievance Handling Procedure:

1. Acceptability:
The grievance procedure should be developed with mutual consultation among all the parties
viz. management, workers and the union so that all the parties accept it without any confusion.
In order to be generally acceptable, the procedure must ensure the following:
(i) A cause of fair play and justice to workers.
(ii) Reasonable exercise of authority to managers.
(iii) Reasonable participation to the union.
2. Legal Sanctity:
It is necessary that the procedure should be in conformity with the existing law. It should be
designed to supplement the statutory provisions. Wherever possible, the procedure should make
use of the machinery provided under legislation. The procedure may be incorporated in the
standing orders or collective bargaining agreement of the organisation.
3. Follow-Up:
A periodical review of working of the grievance procedure is required Necessary improvements

should be made to make the procedure more effective.

4. Simplicity:
The procedure should be simple not complex. It is simple only when it consist of as few steps as
possible. Channels for handling grievances should be carefully developed. Employees must know
the officers to be contacted at each level. Information about the procedure should be
communicated to the employees.
5. Training:
Supervisors and union representatives require a specific training in grievance handling. This will
help to ensure effective working of the grievance procedure.
6. Promptness:
The grievance procedure must contain quick response of redressal the grievances.
The promptness can be ensured in the following ways:
(i) The grievance should be settled at the lowest level as possible.
(ii) There should be a single appeal.
(iii) Time limits should be prescribed and rigidly enforced at each level.
(iv) Different types of grievances may be referred to appropriate authorities.
Steps Involved in Grievance Handling Procedure:

Steps involved in grievance handling procedure are:
1. Step I to identify grievances – The grievances should be identified by the management if they
are not manifested or expressed. In case they are ventilated, the management must promptly
acknowledge them.
2. Step II to mention correctly – The management after identifying or has to mention it as the
problem properly and accurately.
3. Step II collecting data – Complete information should be collected from all the parties relating
to the grievance. Information should be classified into various categories like facts data, opinions,
etc.
4. Step IV to analyses and solve the issue – The information should be analysed, alternative
solutions to the problem should be developed and out of the various solutions the best one
should be selected.

5. Step V prompt redressal – The grievance should be redressed by implementation the solution.
6. Step VI implementation and to follow-up – Implementation of the solution must be followed

up at every stage in order to ensure effective and speedy implementation.
Employee Grievances Handling Procedure – 10 Model Grievance Handling Procedure Suggested

by the National Commission on Labour (With Advantages and Disadvantages)
The model grievance handling procedure suggested by the National Commission on Labour
involves the following successive time-bound steps each leading to the next, in case of
dissatisfaction:
1. Conveyance grievance to the foreman – The aggrieved worker in the first instance will
approach the foreman and tells him of his grievance orally.
2. Approaching the supervisor – The foreman has to redress his grievance and if the worker is
dissatisfied with this redressal, he can approach the supervisor.
3. Going to the step higher to supervisor – The supervisor has to reply within 48 hours. In the
event of the supervisor not answer or the answering not being acceptable to the worker, the
worker goes to the next step.
4. Approaching the H.O.D. – At this stage, the worker (either alone or accompanied by his
departmental representative) approaches the Head of the Department who has to give an
answer within three days.
5. Appeal to the grievance committee – If the Departmental Head fails to answer or if the worker
is dissatisfied with his answer, the worker may appeal to the Grievance Committee, consisting of
the representatives of the employer and the employees.
6. Communication with the mangers – The recommendations of this committee should be

communicated with the manager within seven days from the date of the grievance approached.
7. Unanimous decision – Unanimous decisions, if any, of the committee shall be implemented by

the management.
8. Decision to be taken by the manager – If there is no unanimity, the views of the members of
the committee shall be placed before the manager for his decision. The manager has to take a
decision and inform the worker within three days.
9. Appeal against managers decision – The worker can make an appeal against the manager’s
decision and such an appeal has to be decided within a week.
10. Voluntary arbitration – A union official may accompany the worker to the manager for
discussion and if no decision is arrived at this stage, both the union and management may refer

the grievance to voluntary arbitration within a week of the receipt of the final decision of
management.
Advantages:
Grievance handling procedure contains the following advantages:
1. Bringing to light – It brings grievances into the open so that management can learn about them
and try corrective action.
2. Preventing the grievance from growing to dispute – It helps in preventing grievances from
assuming big proportions. The management catches and solves a grievance before it becomes a
massive dispute.
3. The way to improvement – It enables the management to know the attitudes and feelings of
employee concerning the policies, rules and practices of the organisation. With such knowledge
necessary improvements in policies and rules can be made.
4. Check on management – It acts as a check upon arbitrary and capricious management action.
When a manager knows that his actions are subject to challenge and review in a grievance system
he becomes more careful in taking his decisions.
5. Emotional release – It provides employees a formalised means of emotional release for their
dissatisfactions. Even if a worker does not use the grievance system for his own emotional release
in a particular situation, he feels better because he knows the system is there to use if he wants
to do so. It creates a sense of emotional security for them.
6. Maintenance of work culture – It helps in establishing and maintaining a work culture or way
of life. As problems are interpreted in the grievance procedure, the group learns how it is
expected to respond to the policies that have been set up.
Stages in the grievance procedure is as follows:
Stage I:
Firstly, the aggrieved employee shall convey his grievance verbally in person to the officer
designated by the management for this purpose. The officer has to answer within 48 hours of
the presentation of the complaint.
Stage II:
If the worker is not satisfied with the decision of this officer or he fails to receive the answer
within the stipulated time, then, he shall along with his departmental representative, present

his grievance to the head of the department. Usually, a fixed time is specified during which an
aggrieved employee could meet the departmental head. The head of the department shall give
his answer within three days of the presentation of the grievance.
Stage III:
If the decision of the head of department is unsatisfactory, then the aggrieved employee along
with the departmental representative may forward his grievance to the grievance committee.
The grievance committee shall make its recommendations to the manager within 7 days of the
employee’s request. If the recommendations of the committee are unanimous then the
management shall implement it.
If there are differences of opinion among the members of the committee then the views of all
the members shall be placed before the manager for the final decision. In either case, the final
decision of the management shall be communicated to the employee within three days from the
receipt of the recommendations of the grievance committee.
Stage IV:
If the decision of the management is not in time or unsatisfactory then the worker may appeal
to the management for revision. The management shall communicate its decision on appeal
within a week.
Stage V:
If still no agreement is reached, then the union and the management may refer the grievance to
voluntary arbitration within a week after the decision of the management. In the model grievance
procedure there is a time limit within which an appeal shall be taken from one stage to the other.
The aggrieved worker shall, within 72 hours of the receipt of the decision at one stage (in case
no decision is received then on the expiry of the stipulated period), file his appeal with the
authority at the next higher stage.
Model Grievance Mechanism:
The model grievance mechanism suggested by the National Commission on Labour, involves two
successive time bound steps, each leading to the next, in case of dissatisfaction.
First the aggrieved worker will approach the foreman (or in change officer in bank) and tell him /
her of the grievance orally. The foreman has to redress, women’s grievance and if the worker is
not satisfied with the redressal, he / she can approach the superior (in bank manager) has to
provide an answer within 48 hours. In the event of the supervisor not giving an answer or the
answers not being acceptable to the worker, the worker goes to the next step.

Second step the worker approaches the Head of Dept. who has to give an answer within 3 days.
If the department head fails, to give an answer or if the worker is not satisfied with the
Departmental Head answer, the worker may appeal to the grievance committee, as the step
consisting of representatives of employer and employees.
The recommendation of this committee should be communicated to the Manager within 7 days
from the data of the grievance reaching it Unanimous decision, if any of the committees shall be
implemented by the management. If there is no unanimity, the views of the committee members
shall be placed before the managers for his / her decision. The manager has to take decision and
inform the worker within 3 days. This being fourth step.
Fifth step, is that the worker can appeal against the manager’s decision and such an appeal has
to be decided within a week’s time.
Sixth step being then to trade union’s representative may accompany the worker to the manager
for discussion and if no decision is arrived at this stage, both the union representative and
management may refer the grievances to voluntary arbitration within a week of the receipt of
the management decision.
Employee Grievances Handling Procedure – Steps for the Operation of the Grievance Procedure
in an Unionised Organisation
In an unionised organisation, the operation of the grievance procedure may contain the following
steps:
Step 1:
The aggrieved employee verbally explains his grievance to his immediate supervisor or in a
conference or a discussion specifically arranged for the purpose. The employee seeks satisfaction
from his supervisor. He may or may not be accompanied by his shop steward. The grievance can
be settled if the supervisor has been properly trained for the purpose, and if he adheres strictly
to a basic problem-solving method.
Step 2:
The second step begins when the grievance is not settled by the supervisor. In this case, it is sent
to a higher level manager with a note in which are mentioned the time, place and nature of the
action to which the employee objects. The higher level manager is generally the chief business
manager, a superintendent or an. Industrial Relations Officer who goes into the grievance and
gives his decision on the matter.
Step 3:
This means that the grievance is to be submitted to the Grievance Committee since the decisions
of the supervisor and of the higher level manager have not solved the problem. This committee,

which is composed of some fellow-employees, the shop steward or a combination of union and
management representatives, considers the record and may suggest a possible solution.
It may call upon the grievant to accept the employer’s proposed settlement. It may advise him
that the trade union will not press for anything more than has already been suggested. In some
cases, it may recommend that the issue be submitted for arbitration.
Step 4:
If the decision or suggestion of the Grievance Committee is not accepted by the grievant, he may
approach the management or the corporate executive. This is the fourth step in the grievance
handling procedure.
Step 5:
The final step is taken when the grievance is referred to an arbitrator who is acceptable to the
employee as well as the management. They may agree beforehand that the arbitrator’s award
will be final and binding on both the parties.
The Indian Institute of Personnel Management, Kolkata, has briefly summarised the grievance
procedure in the following five steps:
(i) In the first instance, the grievance should be settled at the lowest level; that is, the employee
should raise his grievance with his immediate superior.
(ii) It should be made clear to the employee that he may appeal if he does not get satisfaction
from his immediate superior. He should know who the next person in the echelon of
management is to whom he should refer his grievance.
(iii) The grievance should be speedily dealt with.
(iv) If the grievance is against any instructions issued by the superior, the employee should clearly
understand that, in the interest of discipline, the instructions must first be carried out before the
grievance can be considered and decided upon. It is only when this has been done that the
employer will register his protest and set the grievance handling procedure in motion.
(v) It should be clearly understood by the employee that there will be no recourse to any official
machinery till the grievance redressal procedure has been set in motion and that, in the event
the employee is still dissatisfied, there will be no direct action by either party which might
prejudice the case or raise doubts while the grievance is being investigated.
In practice, grievance procedure differs from company to company. Some contain simply two-
step procedures; others may have as many as six or more steps.

Employee Grievances Handling Procedure

While the grievance procedure evolved needs to be adapted to meet special circumstances
prevailing in various undertakings, the proce-dure generally followed in handling the grievances
should be as fol-lows:
1. The aggrieved employee shall first present his/her grievance ver-bally in person to the person
designated by the management for the purpose. An answer shall be given within 48 hours of
present-ing the complaint.
2. If the employee is not satisfied with the decision of the officer or fails to receive an answer
within the stipulated time period, the employee can present his/her grievance to the head of the
de-partment designated by the management for the purpose of han-dling grievances. The
departmental head shall give his/her answer within three days of the representation of
grievance.
3. If the employee is not even satisfied with the decision of the de-partmental head, the aggrieved
may request to the grievance com-mittee which shall make its recommendations to the manager
within seven days of the employee’s request. The employee would be communicated the
recommendation within three days.
4. If the committee fails to take decisions within the stipulated time period or the employee is
not satisfied with the decision he/she can make an appeal for revision to management.
Management is supposed to communicate its decision within seven days of the employee’s
revised petition.
5. If no agreement is still possible, the union and the management may refer the grievance to
voluntary arbitration within a week of the receipt of the management’s decision by the aggrieved
em-ployee.
6. Where a worker has taken up a grievance for redressal under this procedure, the formal
conciliation machinery shall not inter-vene till all steps in the procedure are exhausted. A
grievance shall be presumed to take the form of a dispute only when the final decision of the top
management in respect of the grievance is not acceptable to the worker.
7. The management should try their level best to ensure that no grievance should finally get
converted into a dispute and cooper-ate with all the grievance handling machinery.
8. The management shall provide necessary clerical and other as-sistance for the smooth
functioning of the grievance machinery.
9. In the case of any grievance arising out of discharge or dismissal of a worker, the above-
mentioned procedure shall not apply. In-stead a discharge or dismissed worker shall have the
right to ap-peal either to the dismissing authority or to a senior authority who shall be specified
by the management within a week from the date of dismissal or discharge.

Reference Links ;
https://youtu.be/8KOOJCjQ6T4
https://youtu.be/ZHZVwTdUHIA
https://youtu.be/r99uZxYACMo
https://youtu.be/gzwGEBJGz8s
https://youtu.be/OxHgBoeGWhE
https://youtu.be/cC_5cMnjdwQ
https://youtu.be/1HaIGN7lflo
https://youtu.be/4KvsfwS9bgw
IMPORTANT QUESTIONS
Section - A Multiple choice Questions / True False
1. The qualities of Personnel Manager are-

a. Professional knowledge
b. Personal integrity
c .Creative Thinking
d. All of the above
Answer- D
2. Which of the following does not include under the functions of HRM-
a Planning
b. Recruitment
c. Profitability
d. Organising
Answer -C
3 Which is/ are executive functions of Personnel Manager-

a. To make Job description
b. Job evaluation
c. Wage sand salary administration
d. all of the above
Answer-D
4. Job enlargement expand the number of related task in-

a. Job
b. Identity
c. Work
d. Range
Answer-C
5. The process of analyzing job which job description are developed are called-
a. Job enrichment
b. Job evaluation
c. Job enlargement
d. Job analysis
Answer-D
6.The ability to notice and manage emotional cues and information called-
a. Emotions
b. Perception
c. Emotional intelligence
d. None of the above
Answer-C
7.…........................ is the process of forecasting an organisation's future demand for and supply of
the right type of people in the right number-
a. Human resource planning
b. Recruitment
c. Placement
d. Human Resource Management
Answer-A
8. Which of the following becomes most creative factor in production-

a. Land
b. Capital
c. Consumer
d. Human Resource
Answer-D
9. Personnel Management is-
a. Proactive
b. Ongoing
c. Routine
d. None of the above
Answer-B
10. Human Resource Management helps to improve-

a. Production
b. Productivity

c. Profit
d . All
Answer-D
True/False
1.Personnel Management is managing Personnel (Labours) at work. –True
2.HRM is much broader than Personnel Management.-True
3. Human resource planning is of four types. False
4. Job description is detailed study of jobs.-True
5. The first and immediate product of Job analysis is Job description. -True
Section- B
Short Answer Type Questions (6 mark each)
1. Explain the concept of personnel management.
2. Differentiate between Human Resources Management and Personnel Management.
3. State the qualities of personnel manager.
4. What 'are the functions of personnel management

Explain in detail.
5.Write briefly about the scope of personnel management.
6. What do you mean by human resource planning why it is needed.
7.What'are the steps of human resource planning
8. How many types of Human resources planning is there?
9. What is job analysis. State its significance.
10. What is the difference between job description and job specification.
Section - C

Long Answer Type Questions (20marks each)
1. Define Personnel Management .Explain its function and scope.
2. The Personnel manager is paid by management. is he or she therefore a representative of

personnel or management. Discuss in detail.
3. Identify and discuss the managerial and operative functions of personnel management.
4. Explain the quality necessary for a personnel manager and describe his/her function in an
organisation.
5. Describe in brief the human resource planning.
6. What is Job Analysis? Describe the methods.
7. What is the difference between Job descriptions, Job analysis.
8. Describe the features and contents of job description .How would you there are job
description explain through example.

9.Why is Human resource planning common more common among large organizations then small
ones .what are the advantages o fHR planning in large organizations.
10.Define Human resource planning Describe its objectives explain there reasons for growing
interest in HR planning in recent years.
11. What is Job evaluation .It does not usually price jobs. Discuss
12.Explain the objectives of Job evaluation. and discuss the technique used in Job evaluation.
Unit – 2
Section-(A) Multiple choice questions
1. Training refers to the process of imparting which skills:
a)General
b)Specific
c)Important
d)None of the above.

Answer-B
2. Which of the following isn't a factor affecting Recruitment?
a)Social factor
b) Religious factor
c) Economic factor
d)Cultural factor
Answer- B
3.Which is the modern method of training
a)Role-playing
b) Sensitivity training

c) Gaming
d)All of the above

Answer- D
4. Programme for development by Company includes:
a)Training through correspondence
b)Packaged training
c) On the job
d)All of the above

Answer- D
5.Advisory function of Personnel Manager include
a)Training and development
b)Advising departments
c) Advising top Management
d) All
Answer- D
6. Following are the benefits of training
a)Increased Productivity
b)Reduced accidents
c)Reduced Supervision
d)All of the above

Answer- D

7.Which one is a Negative process
a)Recruitment
b)Selection
c) Promotion
d) Training
Answer- B
8..................................is the formal and systematic modification of behavior through learning
a)Training
b)Education
c) Instructions
d)None of the above

Answer- B
9.Which method is not included in On The Job Training
a)JIT
b)Simulation
c)Mentoring
d)Jobrotation
Answer- B
10.HRM is primarily concerned with
a)Sales
b) Dimensions of people

c)Externa lEnvironment
d None of the above

Answer- B
11.Demand for Human resources is created by
a)Expansion of industry
b)Shortage of labour
c) None of the above
d) Both A and B
Answer- D
12.Internal supply of Human resources consist of present employees who can be,....................to fill
the expected openings
a)Promotion
b)Demotion
c) Transfers
d) All
Answer- A
13.The process of encouraging prospective employees and encouraging them to apply for the job
vacancies is
a)Selection
b)Recruitment
c )Job evaluation
d)Job Analysis
Answer- B

14.The objective of selection decision is to choose the individual who are
a) Qualified
b)Unqualified
c) Placed
d) Trained
Answer- A
15.Off the job training methods includes
a)Simulation
b) Case study method
c) Role playing method
d)All of the above

Answer- D

Section "B" Short Answer Type questions
1. What is Recruitment? Explain in brief.
2. Define Selection. State the steps involved in Selection process.
3. What are the objectives of Training?
4. What is the meaning of Counselling.
5. Explain the methods of On the job training.
6. Explain the methods of Off the Job training.
7.Describe Placement and Induction.
8. Explain the meaning of Separation and Employee discharge.
9. Explain Job posting and Employee referrals.
10. What are the objectives of Induction/Orientation.
11. What are steps involved in the Induction programme.
12.Explai promotion and Demotion in brief.
Section "C" Long Answer Type questions
1. Define Recruitment. Explain it's objectives .and Describe various sources of Recruitment.
2. What is an Interview? What are the different types of Employment Interviews
3. What is reference Check? Do you agree with the view that reference checks has become mere
formality in Selection process.
4. Distingush between Recruitment and Selection.
5. Explain the meaning of Employees training. Also explain the benefits of training.
6. Explain the process of selection in steps.
7. What is the meaning of Transfer? Explain the purposes of Transfers.
8. Distinguish between Transfer and Promotion.
9. Explain the term Retrenchment. What precautions should be taken while retrenching the
employees.

10. Explain the difference between Training, development and Education
Unit -3
Section - (A) Multiple choice questions (1mark each)
1,.........................is an objective of assessment of an individual performance against well defined

benchmarks.
a) HR planning
b) Performance Appraisal
c) Information for goal identification
d) None of the above
Answer -B
2. What is linked with Performance Appraisal

a) Job Design
b) Job Analysis
c) Job Description
d) Job specification
Answer -B
3.Alternate term for Performance Appraisal

a) Quality output
b) Job Knowledge
c) Employee Assessment
Answer -C
4. The forced distribution and ranking are considered as methods of

a) Comparitive methods
b) Narrative methods
c) Behaviour methods
d) Category methods
Answer -A
5. Which one is modern method of Performance Appraisal

a) 360 degree
b) Ranking method
c) Essay method
d)All of the above
Answer -A

6. Concept of MBO was developed by!

a) C.K Prahalad
b) Peter F Drucker
c) Henry Fayol
Answer -B
7. First step in Appraisal process is

a) Giving feedback
b ) Defining Job
c) Administering the Appraisal tool
d) All of the above
Answer -B
8.Compensation can be ,......................... benefits

a) Monetary
b) Non Monetary
c) Both a and b
Answer -C
9.,..........................is also called Payment by result.

a) Perks
b ) Allowance
c) Incentives
d) Fringe benefits
Answer -C
10. Incentives depends on:

a) Sales
b) Profit
c) Productivity
d) All of the above
Answer -C
11. The remuneration system needs to meet the following types of equity
a) External
b) Internal

c) Individual
d) All of the above
Answer -D
12. Following is not concept of Wage

a) Daily wage
b) Fair wage
c) Minimum wage
d) Living wage
Answer -A
13. There are mainly…… methods of Performance Appraisal

a) 2
b) 3
c) 4
d) 5
Answer -2
14.,................. are variable rewards given to employees according to variations in performance

a) Remuneration
b)Perks
c) Salary
d) Incentives
Answer -D
15. Factors influencing Bonuses are

a) Eligibility
b) Fund size
c) Individual performance
d) All of the above
Answer -D
Section "B"
Short Answer Type questions (6 marks)
1.Explain the meaning of Performance Appraisal in brief.
2.What are the objectives of Assessment of performance?Explain
3. How traditional methods of Performance Appraisal are different from Modern methods?

4.What do understand by Management by Objective?
5. Explain Ranking Method.
6. Describe Balanced score card method of Performance Appraisal
7. Distinguish between Salary and Wage.
8.Explain Wage Boards.What are it's functions
9. What is the difference between Direct compensation and Indirect Compensation
10. Explain any 2 Traditional methods of Performance Appraisal.
Section "C"
Long Answer Type questions (20 Marks)
1. How Modern methods of Performance Appraisal are better than Traditional methods. Distinguish
between two.
2. Explain the factors which affects the Wage structure.
3. Write Notes on; a) Minimum Wages Act b) Wage Board
4. Explain the process of Wage determination in detail.
5. Explain in detail the following;

a)HR Score card Method
b) MBO
6.Describe any 4 Traditional methods of Performance Appraisal.
7. Write short note on;

a) Payment of Wages Act 1936
b) Pay Commission
8.Explain the Objectives of Compensation Planning.
Unit - 4
Section –

A Multiple choice Questions
1. In which year Industrial Dispute Act came into force-

a) 1947
b) 1948
c) 1949
d) 1950
Answer- A
2. The Act was first amended in the year

a) 1948
b) 1949
c) 1950
d) 1960
Answer- B
3.First come just go and last come is the principle of-

a) Layoff
b) Closure
c) Retrenchment
d) Dismissal
Answer- C
4.Grievance handling machine is given in-

a) Factories Act
b) Industrial dispute act
c) Both a and b
Answer- B
5. Which one is an illegal industrial action as per law

a)Mutual consent
b) Collective bargaining
c) Gherao
d) Lockouts
Answer- C

6. Which of the following is not a feacher of trade union-

a) Voluntary Association
b) Intermediary
c)Common goals
d) Individual actions
Answer- D
7. Employee join unions to fulfill their needs-

a) Social needs
b) Esteem needs
c) Economic needs
d) All of the above
Answer- D
8.Minimum Number of persons required to register trade union-

a) 6
b) 7
c) 8
d) 9
Answer- B
9. Which of the following is not within the scope of Adjudication-

a) Labour courts
b) Industrial tribunals
c) National tribunals
d) Conciliation
Answer- D
10. What do you mean by Lockout? stoppage of work by-

a) Trade union
b) Employees
c) Employers
d) Coutrs
Answer- C

11. The factory act imposes the following obligations upon the employer in regards to -
a) Health
b) Safety
c) Welfare
d) All of the above
Answer- D
12 The formal written complaint of employee is called -

a) Grievance arbitration
b) Employee ownership
c) Letters
d) Grievances
Answer- D
13. The second step in positive discipline approach is -

a) Final warning
b) Counselling
c) Discharge
d) Written documentation
Answer- D
14.The first step in positive discipline approach is. -

a) Counselling
b) Final warning
c) Discharge
d) Written documentation
Answer- A
15. The causes of grievances can be -

a) Management policies
b) Working condition
c) Interpersonal factors
d)All of the above
Answer- D

Section- B
Short Answer Type Questions (6 mark each)
1. What do you understand by industrial disputes.Explain
2. Discuss the scope and scope of industrial dispute act.
3.Discuss the forms of grievances.
4.List the steps in grievance handling procedure.
5.Explain the meaning of Industrial Relation and its need.
6.Describe any three Trade Union of India.
7. Explain in detail role and need of trade unions.
8. List the Essentials for having good Industrial Relation in the organisation.
9.What is the meaning of collective bargaining and conciliation
10.Explain the need of grievance handling procedure.
Section - C
Long Answer Type Questions (20 marks each)
1. Define industrial disputes.Explain the type of industrial disputes.
2. What do you understand by Industrial Relations. explain its significance what are the causes of
poor Industrial Relations
3.Explain the meaning of trade unions also explain the functions of trade unions.
4. Explain the meaning of grievance what is the process of handling grievance explain the steps.
5. According to industrial dispute act 1947 .what are the settlement measures of industrial
disputes

6. What is collective bargaining? Why it is considered best way of determining employer employee
relation
7.What is discipline? Bring out the difference between positive and negative discipline.
8.Define workers participation in management. and discuss its importance.
9. Write short notes on -

a) Strikes
b) 2.Lock outs
c) Retrenchment
10.Explain the causes of labour unrest in India.

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INFINITY MANAGEMENT & ENGINEERING COLLEGE SAGAR

Department of Management Studies

M.B.A. – Second Semester

UNIT - I Nature of Personnel Management, Qualities of a Personnel Manager, Functions of

Department of Management Studies

Lecture 1 - Nature of Personnel Management, Meaning and Concept

Department of Management Studies

Department of Management Studies

Personnel Management is the management of personnel (labour) at work.

▪ Principle of maximum individual development

▪ Principle of effective communication – massage should be clear.

▪ Principle of dignity of Labour

▪ Principle of team spirit – personnel manager should cooperate

▪ Principle of fair reward

▪ Principle of effective utilization human resources

Difference between PM & HRM

▪ Personnel Management is more administrative in nature, dealing with payroll, complying

▪ QUALITIES OF PERSONNEL MANAGER

▪ Problem solving techniques

▪ Capacity for leadership

Department of Management Studies

▪ Initiative and decision making ability

▪ An ability to generate trust among his colleagues

Function of personnel Management

1. Managerial Function – Under managerial Function we include the primary functions of

 Planning Function – planning today avoids crisis tomorrow

 Organizing – an organization is the wedding of authority and responsibility

 Controlling – is the act of checking and regulating

2. Operative Function – operative function are those function of the personnel

Scope of personnel management

2. Job analysis & job designing

Department of Management Studies

3. Recruitment and selection

4. Orientation (Direction) & placement

5. Training and development

6. Performance appraisal & job evaluation

7. Employee & executive remuneration

8. Motivation & communication

9. Welfare, safety & health

10. Industrial relation (IR)

Human Resource Planning

Need of Human Resource planning

1. Increase in the size of the business

2. Effective recruitment and selection policy

3. Reduction in labour cost

6. Effective employee development programme

HUMAN RESOURCE PLANNING PROCESS:

Department of Management Studies

1.Organizational Objectives – short –term & long – term

2.Human Resource Requirements – determine the period for forecasting requirements of

There are two types of HRP Planning:

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► Long –Term Planning-Planning for more than two year.

Most Common Methods of Job Analysis

▪ Interview Method: In this method, an employee is interviewed so that he or she comes

Department of Management Studies

Purpose of Job Description

Department of Management Studies