DefnMons:

HRP may be defined as strategy for acquisition, ui ’on, inn o

human resources of an enterprise. The objective i! o provide ri
sources. HRP exists asa part of the plaliiii ig
nah em vhich is sinned st co-orâinating

ctives of HR
The m ,or ob yes of Human Resource Planting in an orgsoissiion src to:
(i) en me op be of human resources currently employed;

(iii) assess cii forecast futuie skilli equireiiieiils of” the organisation’s cii ei all objectii'es:

(iv) provide control measure to eR5ure availability of necessary resource5 ii hen required;
(v) control the cost aspect of human resources;
(vi) formulate transfer and promotion policies.
 Benefits of HRP:
Proper HRP results intoa number ofbenefits. Some ofthem src:
• C'i eatei eseii oii of” talent

• P ’epsrstion for future HR needs

p ’ocess of ’eview, control and assessiii ollowing below points depicts the steps in
process of HRP:-

1. Determine the in of organizer objectives on specific organizational unit

2. Define the skills expired to m ives (demand for Human Resoc ’ccl
ional human requirements ih light of current HR (net HR

an to meet theanticipated HR needs

keeping these in mind.

3. Furore plans, goals, end objectives of the companys ’e also taken into account.
Human Resource Demand Forecasông:
HR demand forecasting mainly involves three suß functions:
1. Demand Forecast: Proceu of estimating fuiure quaniity and quality of human resources
required.
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deskeds|d#swemaŁeB!fnofœdCenshoŒgeisshwm
3. Supply Forecast: Basing on the existing HR inventory and the demand fniecast, the supply
forecast of human resources is carried out in an organization.

The main problems intheprocess of HRP are as follows:

i. naccuracy HRP is entirely dependent on the HR forecasting and supply, which cannot bea
cent per cent accurate process.
2. Employee resistance: Employees and their unions feel that by HRP, their workload increases
S0 lÍtey reSİSi lite pr0CeSS.

3. Uncertainties: Labor absenieeism, labor iumover, seasonal employment, iechnological

changes and market ßucniations are the uncertainties which HRP process might have to face.
4. Inefficient infortnaôon system: in Indian industries, HRIS is not much snong. In the absence
of reliable data it is not possible to develop effective HRP.
5. Tìme anüexpense: I4RP Îs time consuming and expensive ezerÒse, so ìnüustries avoiü.

HRP forecasting Techniques:

The planing process cDnsists of Mo major activities: forecasting needs of human resources and
forecastlng snpply of human resources.
Forecasthig needs for human resources and forecasông supply of human resources, both taken
together help to identify gap between human resolrCes needed and their availability.
Vańous action plans are devised to bńdge the human resource gap. If there is surplus of human
resources either because of improper HRP in the past or because of change of organsiaiionil
plan, such as dis investment of business or closing down some businesses because of vanous
reasons, action plans may be devised to reduce their size ihrough layoff, voluntary reiéement etc.
mans may be devised to recniii addifional
if nnel.T Annes oh ena R source'N,
The follovñng techniques am usually used.
1. Managerial judgemeni method
2. Delphi Teciuiique
3. work-study technique
4. Ratio-trend analysis

S. Statistical and mathemafical models

This isa conventional method of human resources forecasting method. In this method mangers
prepare the forecast of human resource needs of Various categories in their own departments on
their past experiences. This meRod canbe applied in two alternatives, iop-down approach or
bottom-up approach. In top-down approach, top management prepares human resource plan for
the organization asa whole wiih ihe assistance of HR depanineni. This plan is circiilaied among
various depaoments with an advice to make necessary amendments whenever requéed with
justification. Afier receiving ihe document from various deparimenis, human resore needs of
various depar0nents as findized usually ina committee meeting of department heads.

This teclmique is named after the ancient Greek Oracle at the city of Delphi where greek used to
pray for informafion about the fiiiure. In lhe present world Delphi Technique is used in group
decision making in small grnups. The problem and questions relating to HR requirement and
related issues will be circulated to the eapert group. Their suggestions and replies will be sent to
others and if needed queries made andfmal decision taken. This exercise is repeated until some
connnsin 1s reached. Delphi iecluique is quite useful where the problem caimot be SDlved by
using analydcal technique bu1 iis solution requires subjective judgements ona collective basis.
Delphi tectuñque can be used forforecasting human resource needs in two forms. First, it can be
usetl tn know the trends for changing job profile and consequently, the changing personnel
profile across the comtry orat international level secondly, this technique can be used to solicit
views of expens in different funciional areas of an organization about the changing profile of
personnel in theé respeaive departments in ihe light of changing environment. Such views are
colleaed and summarized by HR depamnent to arrive aia decision aboui the types of peoonnel
needed in future.
Work sni‹{y fzrhniqoz:
Work study technique is based on ihe volume operaiion and work efficiency of peuonnel.
Volume ofoperation is derived from ihe organizational plan documenis and increase/decrease in
operation can be measured. Work efficiency or productifity is measured by time and motion

outpui per hour standard hours per person.

However, standard output per hour is not alwaysa constant factor. Ove a period of time
increase due to traiiñng and higher technology. In this way required personnel ma 1 oiil.

Under this method, the main emphasis is on the ratios betw

operatives; ratios between direct operatives and other ners e1
personnel. These ratios are worked ou1 fora nun r of year
se ratios.
f personnel such as ratio of supervisors

conometñc
be used.

Forecasting of HR supply:
Forecastingo iiman ply is another important ingredient of HRP. Afier forecasting
human resoume ogical to detemñne how these needs can be met. Fora new
animation needed have to be procured from outside. But in an existing
organisation, me a source for higher positions. Armstrong has defined
“Manpo ensures that number of people likely to be available from
within and outside an organization, after movements and promotions, wasiage and changes in
work hours, and olher conditions of work”.
 {OBANALYSS

In the words ofDale Vo4er."A jobisa collection of duties, tasks an4 responsibilities which are
assigned io an mdividqal and which is different from other assignment“
According io Michael J. Jucius, "Job analysis refers to the process of studying the operations,
dufies and organisational aspects of jobs in order to derive specification or, as they are called by
some jobdescripfion"
Job analysis, contains a simple term called "analysis", which meaiis detailed study or
examination of something (job) in order to understand more about it (job). Therefore jDb analysis
is to understand more abouta specific job in order to optimise it. Job analysis isa systematic
process of collecting complele information pertaining toa job. Job analysis is done by job
analyst who is an officer haVe been trained for it.
Job andysis isa procetlure through which you determine the duties and responsibilities, nature of
be jobs and finally to decide qualifications, skills and knowledge to be requind for an employee
to perform panicidar job. Job analysis helps to understand whai tasks are impooant and how they
are carried on. Job analysis forms basis for later HR activities such as developing effeaive
raining program, selection of employees, setting up of performance standards and assessment of
employees tperformance appraisal)and employee remuneration system or compensation plan.
Objectire of JA:
(a) To determlae mDst effective methods forperforminga job.

(b) To increase employee job satisfaclion.

(c) To identify core areas for giving lraining to employees and to find out best methods of

(d)Development ofperformance measurement systems, and

tel To match job-specifications with employee specifications wNle selection of an

emplope.
 I. trork orfeiiled nppronrh: This approach focus on the acnal task involved ina Job.
This appnnch mainly concentraie on duties, fiinciions and rnponsibilities involved ina
job.
2. £Xipf‹tyee orietifed ‹approach: This approach focus on ezamiatng of human attñbutes
needed to perform the job perfectly. hyman attributes have been ctassi0ed mto
Imowledge, skilh, attitude and other characteristics. Xsowledge is the inforraation people
nee‹t m orde7 tD 9Ff0fT‹i the job. Slcills are the prodciencies needed to pedbrm each
taslc Abilities are the attributes that are relatively stable uver time.Other
characteristics are all other attñbutes, usually personality facton.

Job Analysts

Job Spacfflcatlon

• Job Tide • Qualifications

• Job Location • Experience
• Job Summary • Tra1n\ng
• Reporting to • Ski(Is
• working Condtt1ons • Resgons\bt1tIes
• Job Duties • Emotional
• Machines to be Used Character1stlcs
• Hazards • Sensory Demands

Jobdescription includes basic job-related data thal is useM to advertisea specific job and attract
a pool of talent.It includes information such as job tifle, job location, reporting tD dlld of
enplojees, }ob sumnary, naurre and objeciives ofa job, tasks and duties to be performed,
working contlitions, machines, iools and equipment to be used hya prospective worker and
hazads involved in it.
Pnrpoie ofJob Docrlpdon

• Themin purpose of job descnption is to collect job-related data in onler io advenise for
a particular job.It helps in attracting, targeting, recniiting and selecting die right candidate
for the right job.
 • lt is done to deterniine what needs to be delivered ina particular job. li clarifies what
employees are supposed to do if seletted for that paoicular job opeiüng.
• li gives recniiting staffa clear riew whai kind of candidaie is required bya panicular
depamnent ordivision io performa specific task or job.
• li also clarifies who will report to whom.

Also loiown as employee specifications,a job specification isa wriuen statement of educational
qualificafions, specific qualities, level of experience, physical, emotional, teclmical and
commimicaóon ski1ls required to performa job, responsïbi1iòes involveü ina job md other
imusual sensory demands. It also includes general health, mental health, intelligence, aptituae,
memory, judgment, leadership skills, emolionaf ability, adaptability, 8ezibility, values and
ethics, maimers and creativity, etc.

Pnrpose ofJob Specification

• Described on the hasis of job description, job spécification helps candidates analyze
whether are eligible to apply fora parlicular job VaCancy orflot.
• lt helps recniiting ieain of an organisation understand whai level of qualifications,
qualiôes and set of characieristics should be present ina cantlidaie io nake lüin or her
éligible for the job opening.
• Job Specification gives deiailed informaiion about any job including job inponsibilities,
desiœd technical and physical skills, conveoational ability and much more.
• li helps in seleoing the most appropriaie candidate fora particular job.
job description and job specification are two integral parts of job analysis. They de0nea job
f\lily and guide both employer and employee on how to go about the whole process of
recruitment and selection. Both dBta sets are extremely relevant for creatinga right 6t between
job and talent, evaluate performance and analyze raining needs and zrieasuring the worth ofa

Porposeof}obAsüyWü:
JobAnalysis plays an important role in recruinnent and selection, job evaluation, job designing,
deciding eonpensatlon and benefits packages, performance appraisal, analyzing training and
develDpioent needs, assessing the worth ofa job and increasing personnel as well as
organizational productivity.
Job desiga involves specialisation, simplificaôon in perfoiming the job, job rotation, job
enlargtmeni, ielaôonsNp with similar types of jobs, motivation of employées etc. The
management should not takea decision in Vaste in designing or later redesigning jobs in an
oiganisaôon. Job desigrring should be consistent with the overall organisaôonal strategy. Since
jobs are liRk«d between ¡›eople and orgailis8tion, orgailisational, enviioiunental aad beiiavioural
factors sltould be taken mto account before designing jobs.
The logical sequence to joti analysis is job design. Job analysis, as was explained earlier, proridm job-
related data as well as the skills and knowledge expected of the incumbent to discharge the job. Job
design, then, involves conscious efforts to organise tasks, duties, and responsibilities intoa unit of work
toachieve certain objectives.

The main objective of job design is to integrate the needs ofthe individual and the requirements of the
organisation.Needs of employees include job satisfaction in terf¥m of Interest, challenge and
achievement. Organisational requirements refer to high produchvity, technical efficiency and quality of
worL. Today, educated and creative employees demand mefl-designed jobs. Therefore, increesing
ettempts are being mede toredesIgn)obs so as to improve the quellty of worklng life.A systematic body
of knowledge on the deslgnlng of)obs has been developed after the Industrial Revolution and the large
scale enterprlses.

International Labour Organimtim “Job evaluation is an attempt to determine and compare

methods which thenormal pnfonEance ofa particular job makes on normal workers without
taking into account the ñidivâhial performance of theworker concern”

job evalaatioa is the process of analyzing and assessing various jDbs systematically tD ascmain
their relaöve worth in an organization.

Job annlyrls describesa jDb. Job eValudöon developsa plan for coniparing jobs in terms of those
thipgs the orgaiüzaöon considers iinpooant detenninants of joh worth. Tkis process involvesa
nuinbn ofoeps that will i›e briedy staied here and then discussed more fully.
1. Job Aaal . The finn step isa study of the jobs in the organization. Thnugh job
analysis, information on job content is obtained, together with an appreñation of worker
re uiiemenu for sumessM performance of be job. This infoinntion is recorded in the
precise, consistent language ofa job description.
2. Compensable Factor The next step is deciding wlnt the organization "is paying for”
thai is, what factor or factors place one job ata higher level in the job hierarchy than
 another. These compensable factors are the yardsticks used to determine the relative
position of jobs. Ina sense, choosing compensable factors is the hear ofjob evaluaiion.
Koi only do these faciors place jobs in the organizaiion's job hierarchy, bui they also
serve io inform job incumbenu which contributions are rewarded.
3. Developing the Method. The ihird step in job evaluation is to selecta method of
appraising the oiganizafion's jobs attording to the factor(s) chosen. The method should
permit consistent placemeni of the organization's jobs containing more of the factors
higher in the job hierarchy, than those jobs lower in the hierarchy.
4. Job Structure. Tire fourth step is comparing jobs io developa job structure. This
involves choosing and assigning decision makers, reaching and recording decisions, and
setting up the job hierarchy.
S. Wage Structure. The final step is pricing the job smicture to arrive aia wage structure.

Job Evaluation Methods:

After job analysis preparations of job descriptions comes theessential stage of job evaluation,
namely, the systematic comparison ofjobs in order to establisha job hierarchy. The ieclmiques
which have been commonly used iend to fall into one of the two main categories:

1.Non-analytical or tion-quanôtative or sunlmary metiiods

II.And1ytiCdl 0r QildltliliiiiVe iRellt0dS.

1. Ranking Method: This is the simplest and an inexpensive job evaluation method, wherem
the jobs are ranked tïoin the liigliest to the lowest ofithe basis of ilieir iinpondnce in the
oTganiZabOft. In t| !s T\t9Itt‹XI, tfte 0vera|] j0§ iS CDjTtpa‹erI wjth the Other setof jobs aIt8 theTt
is givena raM on thebasis of its content and complexity in performing it.

Here thejobis RDi brnken into the factors, an overall analysis of the job is done. The main
advantage rif the banking method is, it is very easy to understand and is least expensive. But
hDwever ii is not free from thelimitations, it is subjective in nature due to which employees
may feel offènded, and also, it may not be fruilM inthecase of blgD dlliZaöORs.

2. Job Grading Method: Also known asJob-Classification Method. Under this method the
job grades or classes are predetermined and then each job is assigned to these and is
evaluated accordingly.
For Example Class, I, comprise of the managerial level people under which sub-
classification is done on the basis of the job roles such as office manager, department
manager, depamnental supervisor, eic.

The advantage of this method is that it is less subjective as compared to the raIdng method
and is acceptable to the employees. And also, the entire job is compared against the other
 jobs and is nor broken into factors. The major limitation of this method is that the jobs may
differ with iespea to their content and the complexity and by placing all under one
category the usults may be overestimated or underestimated.

Factor-Comparison Methotl: Under this method, the job is evaluaied, and the ranks are
given on the basis ofa series of factors Vif. Mental effort, physical effort, skills required
supervisory responsibilities, working conditions, and other relevant factors. These factnts
are assumed io be constani for each set of jobs. Thus, each job is compared against each
other on this basis and is ranked accordingly. The advantage of this method is that it is
consistent and less subjective, thus appreciable by all. But however it is the most complex
andamexpensivemethod.

2. Point-Ranking Method: Under this method, each job's key factor is identified and then
the sub factors are delermined. These sub-factors are then assigned the poinis by its
i1l1]2011illtC0.

For example, the key faaor io performa job is skills, and then it can he further dassified
inio sub-factors such as raining requéed, conununication skills, social skills, persuasion
SklllS,£ tC.

The pom‹ raiding method is less subjective and is an error free as the rarer sees the job
from all the perspectives. But however it isa complex method and is time-consuming smce
thepomts and wage scde basto be decided for each Sactor and the sub factors.
 RECRUITMENT AND SELECTION

Recruitnient:
Flippo “Recniiimeni isa process of scorching for prospective employees and stimulating and
encoumging them toapply forjobs in an organisation”

Sources of Recruitment:
there aretwo main methods/ sources of recruitment which areasfollow.

• Internal Recruitment
- External Recruitment

He organizations has two opfions to fiI1 the vacant posts of the upper level management by either
hiring employees from outside of the organization or by promoting the exisfing lower level
employees. Both ways have some advantages& disadvaniages.

Internal Sources of Retruitmeni

When there come jobvacancies in the organizaiion, the first priority that an organization focus is
replacement from intemd environment of the organization. The existing employees of the
organization think thai they should be preferred for the vacant jobs position of the organization
because they are already sening ihe organization with potential & cominiuneni. Also the
recruiting management oftheorganization has access to the records of its existing employees in
order io determine which employee has ihe potential to bear the higher level responsibilities.
Another feature of reouiment from theinternal environment is thai ii is much cosi effective.

Following aresome ofthemain forms of internal recruitment.

1. Promotion from within

2. J0b Posting
3. Contacts& Referrals

Many orgaiüzaôons prefer io promoie their entry level employées to the higher level positions
and theiefore suth organisations maintain human retourne planning system. The huinan Resource
planning sysiem uses ihe replacemeni charn& suttession plans io point oui& proinoie
employées to the higher level positions. The performance appraisab are reviewed for de purpose
of idenôfying the employées thai have poiential & desée to be promoted. The iniernal
recrutement incieases the motivation among existing employées for effective work& this would
finally enliance the niorde of employées.
Job posiing is also used for the iniernal recruiiment by the organizations. The organization
informs its employees about the new job opening through publications, bulletins& personal
letters. The mam reason of job posting is to communicaie with the employees about the vacant
posts. Following are guidelines for the effective job posting.
• Job posting must be prominent.
• The job specificafions should be communicated clearly so thai the employees can
ascertain by themselves that either they are eligible for the posi or not.
• All the applicants must be informed about the decisions made by themanagement.
• The worl0ng ofjob posting system is quite well.

3.Contacts & Referrals:

Many organizations conclude thal their employees can support the recniiting process. the
employees can refer the applications of their friends& associates The organization supports its
existing employees to attract the applications of their friends& relatives for the vacant posts. In
this way the employees refer their associaies& friends tn apply for the posis which is much cost
effective& quick process of recniitmeni. However there are terrain problems associaied with the
hiring the relatives& friends of exisiing employees llke favouritism eic.

External sources far oumumber theinternal methods. Specifically, sources external toa firm are
professional or trade associations, advertisements, employment exchanges,
college/university/institute pIacement services, walk-ins and write-ins, consultants, contractor

1. Pro/essionnI or Tt de Associations:

Many aasociatinns provide placement services for their members. These services may consist of
compiling job seekers' lists and providing access to members during regional or national
conventions. Further, many associations publish or sponsor trade journals or magazines for their
members. These publications often carry classified adveniseinents from employers inieresied in
recniiting theé members. Professional or trade associations are paniciilarly useM for attracting
highly educated. experienced or skilled personnel.
These constitutea popular method of seeking recniits as many recniiieo prefer advenisemenis
because of theé wide each.

Want ads describe the job and the benefits, identify the employer, and iell those who are
interened and how io apply. They are be most fanñliar form of employment advertising. For
higNy specialized recruits, advertisements may be placed in professional/business Journals.
Newspaper is the most common medium.

A number Df factors influence the response rate to advertisement. There are three importani
variables- identificafi0R Df the company, labour-market conditions, and the degree tD Which
specific requirements are included in the advertisement.

.ftapleymmt £xcfiongo:
Employraeni exchanges have been set up all over the country in defeunce to the provisions of
the Employment Exchanges (Compubory Notificadon of Vacancies) Aa. 1959. The Act applies
to all industrid esiablishnients having 2S worker or more each. The Aa requires all the
indusoial establislunenis io notify the vacancies before they are filled. The major functions of the
exchanges are to mcrease the pool of possible applicants and io do preliminary screening. Thus,
employment exchanges act asa link beMeen theemployers and the prospective employees.
These offices are particularly nseM inrecruiting blue-collar, white-collar and teclmical workers.

Colleges, imiversities, research laboratories, sports fields and institutes are fertile gmund for
recruiters, paRicularly the institutes. In fact, in some companies, recruiters are bound to recruita
given number of candidates from prestigious institutes every year. The IIMs are an important
source for tecniiting management earners.

The most common andleast expensive approach for candidates is diiea applications, in which
jobseekers subnñt unsolicited application letters or resumes. Direct applications can dso provide
a pool of potential employees to meet future needs. From employees' viewpoint, walk-ins are
preferable as they are free from lhehassles associated with other lnethotls of reciuiment. While
direa applications are panicularly effective in filling eniry-level and unskilled vacancies, some
companies compile pools of poiential employees from direct applications for skilled posiiions.

Write-ins are those who send written enquiries. These job seekers are asked io compleie

are some among thenumerous recruiting agencii These and er agencies in the profession
are retained by organi2ationS for recniiiing and selecting managerid and executive personnel.

hundred inhabiiants. Rehabilitaiing ihe displaced people isa social responsibility of business.
Such people area source of recniiiment, noi only for the project which caused ihe displacement,
bui also for other companies located ebewhere.
Rehabilitation of displacetl persons is inandaied by the government, and the world Bank has
made it conditionality for granting assisiance to the concerned counny.

9.Studio «nd television:

Radio and television are used but sparingly, and that too, by goveriuneni depar0neno only.
Companies m the private sector are hesitant to use the media because of high costs and also
because they fear that such advertising will make thecompanies look desperate and damagt their
image.

Radio and television can be used to reach ceriain types of job applicants such as skilled workers.
Besides, there is nothing irrherenfly desperale about using radio or televisiDR. Rather ii depends
upon what is said and how it is delivered that implies some level of desperation.

Another method of wafting finns isa result of the merger or acquisition process. When
organizations combine into one, they have to handlea large pool of employees, some ofwhom
maynolonger be necessary in the new organization. Consequently, the new company has, in
effect,a pool of qualified job applicants talthough they are current employeesl. Asa result of the
merger or acquisition, however, no jobs may be created as well. Both new and oldjobs may be
readily drafted by drawing the best-qualified applicants from this employee pool.

Rival firms can bea source of recruitment. Popularly called ‘poaching or ‘raiding’, this method
involves identifying the right people in rival companies, offering them better terns and luring
them away.

E-remitting involves screening candidates elecironically, directing potential hires toa special
website for online skill assessment, conducting background checks over the Inieniet,
inierviewing candidaies via videoconferencing, and managing the entire process with web-based
software.
Perhaps no method has ever had as revolutionary an effect on iecniiment practices as the
Inteinei. There are respective company websites devoted in some manner to job posting
aciivities. Cunently, employers can electronically screen candidates' soft atiribuies, direct
potential hées ioa special websiie for online skill assessment, conduct background checks over
the Internet, mterview candidates via videoconferencing, and manage theentire process with
web-based soWaie. Companies benefit immensely through cost savings, speed enhancement
and extended worldwide candidate reach whtch the Internet offers. From thejob seekers'
perspective, the Internet allows for searches overa broader array of geographic and company
postings than was possible before.

Selection:
Meaiñng ofSelection:
Seleaion is the process of picking up individuals font of the pool of job applicanis) with
requisiie qualifications and compeience in fill jobs in the organization.A formal definiiion of
Seleaion is as under
Definition of Selection: Process of differentiating “Selection is the process of diffeuntiaiing
between applicant in order to identify and lire those witha greater likelihood of suttess ina
job.”
Difference between Recruitment and Selection:
Recruitmuit Selection
1. Recnritinent refets io the prncess of 1. Selection is concerned with picking up
identifying and encouraging prospective the right candidates froma pool of
employees toapply for jobs. applicants.
2. Recniitment is said tn be positive in its 2. Selection on the other hand is negative
approach as it seeEs to attract as many inits application in as much dSit Se8ks tD
candidates as ¡xissible. eliminate as many unqualified applicants
as possible in order to identify the right
candidates.

1. Prelimlnary lniervlew: The purpose of preliminary interviews is basically to eliminate

unqualified applications based on information supplied in application forms. The basic objeoive
is io rejeo misfit. On ihe other hands preliminary interviews is often calleda courtesy inierview
and isa good public relaiions exercise.
2. Selection Tate: Jobseekeu who past ihe preliminary inierviews are called for tesis. There
are various types of tests conducied depending upon the jobs and the company. These rests can
be Aptitude Tests, Penonaliiy Tests, and Ability Tests and are conducted to judge how well an
individual can perform relaied to the joh. Besides this there are some oiher tens also like
Interest Tests factivity preferences), Graphology Tes1 (Handwriting), Medical Tests,
Psychometric Tests eic.
3. Employment Interview: The nexi siep in selection is employment interview. Here
inierview is a formal and in-depih conversation between applicant's acceptability. li is
considered to be an excellent selection device. Interviews can be One-to-One, Panel Interview, or
Sequential Interviews. Besides there can be Structured and Unstnietiired inierviews, Behavioral
 Placement:
When once the candidate reports for duty, the organization has to place him iniñally in ihat job
for which is selected; immediately ihe candidate will be trained in various related jobs during the
periods of probañon of xairéng or trial. The organization generally decides the final placement
after the initial training is over on the basis of the candidate's aptitude and performance during
theaairñ;ngf probation period.
A probation period ranges between siz months and two years. If the peiformance is noi
satisfactory, the organization may eztend the probation or ask the candidates tD guite &e job.
Placement is the determinafion of the job to which an accepted candidate is to be assigned and
his assignment to that jDb. It isa matching of what thesupervisor has reason to think he can do
with thejob demands, it isa matching ofwhat he imposes and what he offers in the form ofplay
roll, companionship with others, promotional possibilities etc.E is not easy to match all factors
to the new employee who is still unknown to many. So, the new ertiployee is placed asa
probationer until the training period is over.

Employee Placement Process:

a) Collect details about ihe employee
b) Constrict ihc employee’s profi Ie
c) March benveen sub-group profile and individual's profile
d) Compare siil›-group profile to job family profile
e) March between job family profiles ind sub-group profiles
5 Assign the mdividual to the job family
g) Assign themdividual io specific job after fuller counselling and assessment

Problems inPlacezoent:
i. EmpID E! ‹"ZpeCtafiDns; Employee expectations from the job is the main source for the
problems in placement. If the employee expects high salary, independent and challenging
work and thejob offers low salary, dependent and routine work, the employee finds
himself misfit to the job.
”u. Job expectafions/description; Sometimes, the expectations from the employee are more
than the employee abilities or slñlls.
iii. Change in technology; the technologicd changes bring radical changes in job description
and specification.
iv. Change in organizational smitten; the business grand strategies like mergers, acquisitions,
downsizing, de-layering oc, result in changes in organizationd stnictuie and ihereby
changes in the jobs.
v. Social and psychological favors; the social and psychological factor involved in team
work orgroup formation sometimes results in mismatch.
How to Make Placement Effective:
Job rolaiioii

s.| roccdi niles anti rctctilïii ions, codes

w at keI. tiistoj els

itlayt, retireliieiit hPI\8ttts)

oliha 's, vocaiioii)

About tfie Siiyerioi s, Suôol diNates:

llltl Od rlct ioll ibe Hew e11ipt0¡’ee i0 the st1pe1’iOl’ tO tvh0lil tte sh0ii]û1 t’pOlt
Ihtl odrice to othel siiperiors i‹'iih i›'1iolo his i›'ork is ii directl' lelaterl
Illtl‘Odrice hiiii to his siiboi fiinaies i›'ith i‹'hoin he his to work
Illtl‘0driction io ihe suhordiiiatesi 'tio i«ill report to mini
 - Introduce to his colleagues

I. Reposing for duiy ata certain place to the head oî the departineni concerned
II. The head ofthe depauøient welcomes the new employees
III. Inooducôon to the organizational/ branch head introduces to important employees and
4eSCrİl›eS db0UI lÍle OrgdilİZatİOn
IV. Departmental head introduces to all the employees of the deparonenL describes the
department, totd work thedepartment
V. Superior concerned introduces to łús co-workers in that sectiori/imit to the work/job, material,
machine
VI.Rovidîng informaõon about the duões, responsïbi1iúes, rights, faciliöes, provisions, welfare
measures
VII. Supervisor clarifies the doubis of the new employee about thework

First impression mattersa good deal and results in less turnover

Newcomer adjuøs himself to the work quickly, and it saver the time of the superior
Reduces employee dissaiisfaaion and grievances
Develops sense of belongingness and coininiuneni

BUS¡f 0r ilßtraİßid SlipeíYİSOrS Jlsy fat İll Carrying 0111 the ¡›r0grdiRiße
The new employee may not come up, if too much information is provided to the employee
during the mducõon programme
- The induction programme fails, if the employee is misplaced
- The gap between thewidrr ońentańon by thehuman resources department and the narrow
onentaôon by thedepamnent concerned
Some organizaônns resort to trial by fire ońentation
The employee may be required to fill too many forms during the onentaôon/induction
prDgramme

How toAfeJœ theInduction Programme EJective?

rna card of thepossible problems and solutions therefor
-A warn andfriendly welcome will reduce the possible problems
-A phased inducõon programme would place the new employee at easy and learn slowly
- Periodicd follow-up and filling the gaps in the infomiation would reduce the problems
' Attachinga colleague to the new employee fora month would reduce the new employee’s
anxiety
- Providing written and documented informaiion through video cassettes and computer
Poppies would make the induction programme less loaded
 Separ8Ô0£t6:
Séparation octurs when an employée leives ihe organisation. Why do separaöons occur?
Reasons for employée separations may be voluntary or involuntary. In the former, initiation for
separation is taken by the employée himself or herself. Where the employer iniñates to separate
an employée, ii becoines involuniary séparation.

Vnliintary Separatinns: As stated above, voluntary separafions occur when theemployee

decides to terminate his or her relationship with the organisation. Quits and retirements are the
most manifesiations of voluntary separations.
Retirements: Retirements occur when employees reach the end of their career The age foran
employee's superannuation differs. In some States it is S8 years and in Central Government it is
60. Many governments have raised the limit to 60 and 62 respectively as there is shDrtaJ Of
skilled people to fiIl up the vacant jobs.
involuntary Separado»i: Employers resou to terminate employment contract with employees
for ai least three reasons: (i) organisation is passing through lenn period and is unable to maintain
be existing labour, fii) initial faulty hiring resulting in mismatch between job and employee fit,
and (iii) employee exhibit deviant behaviour riilaiing the enrironmeni around.
Discharges, layoffs, YRS and rightsizing ale tke common methods of employer sponsored separations.

Oiich«rges:A discharge rates place when theemployer discovers that it is no more desirable to
keep an employee any longer. Dis‹:harge, also cdled temânation, should be avoided as far as
possible. Any termination isa reflection on the company's HR system. In addition, termination is
expensive as the firm must seeR replacement, hire and train the new hiree. Finally,a disclurged
individual is likBl§ 10 bddfIlDUth about the company. Obviously, discharge needs to be viewed as
a last resort.
Et;y-e)Js:A layoff isa temporary separation of the employee at the instance of the employer.
Section2 (kkk) of the Industrial Disputes Act, 1947, defmes lay-oO as the failure, refusal or
inability of an employer to give employment toa worker whose name is present on the rolls bui
who has not been retrenched. A lay-off may be fora definite period on the expiry of which the
employee will £y recalled by the employer for duty. lt may extend to any length of time, with the
result the employer is unable io estimate when he or she can recall his or her employees.
Oiimñtni or Oiscflnrge: Where the ierinination of employment is initiated hy the employer, ii is
known as dismissd or discharge, which isa drastic step and should be iaken afier careful
thought.A dismissd needs to be supposed by jusi and sufficient reasons.
Retı'enchıııent: Reılenchnıeııı, too, resıılıs in the separaıion of all flınployee fl Olu his'her
eınploşeı. It refers to the ıerınihatİ0ll Of the $B1 vices of eınployees becaose of the replacenıenl of
I boor ö¡' ıpachihes or the closııre of fiepaı tıI1Pll1 fiue t0 COIııiııııiııg tuck of fieınaııö for the
prOdCICIs lııfi Huh C I tıred im ıh st pil ı İcılla 1 d e p al tılle llt O f the Ol çfill j'i zti On.

Uolııııtnıy Retirenıent Scheıne: Volıılltary retiıe ıueht scheıııe (VKS is yet ahothel tjye ol
STRATEGIC HUMAN RESOURCE:

Strategic himan resource management is the connection between a companys human

resources and its soategies, objectives, and goals. The aim of strategic human rnource
nunagenient is io: Advance dexibility, innovation, and competitive advanuge. Developa fli for
Surprise organizational culMe.

Strategic human resource management encompasses the tradifional human iesnurces functions of
recniiting, screening. interviewing, and hiring employees, but also works with the overall
organizational strategy to achieve success.

Strategic human resource management involvesa future-oriented process of developing and

implementing HR programs that address and solve business problems and directly contribute to
major long-tern business objectives.
The key features of SBRM are:
• There is an explicit linluge between HR policy and practices and overall organizational
stiaiegic ams and the organizational environment
• There is some organizing schema flaking individual HR interventions so that they are

• Much oftheresponsibility for the management ofhuman resowces is devolved doom the
line

Process of Strategic Beotan Resource Management:

The strategic himan resource management process is the management ofa CorapanJs Human
Resource In completely collaborate in the achievement of the strategic objeclives of the

StintJc hainan resource management is key for the retention and developmeni of quality staff.
lt's likely that employees will feel valued and want io stay witha company that placesa
pumiiim on employee retention ind engagement. Before you implemeni straiegic human
resource management, you will need to createa strategic HR planning process using the steps
below:

1. Developa thorough understanding of your company's objectives

2. Evduate your HR capability
3. Analyze yow curent HR capacity in light of your goals
 4. fisiiniaie your company's future HR requirements
S. Determine the tools required for employees to complete the job
6. linpleineni the human resource management strategy
7. Evduation and corrective iciion
T¥eories of Strntegic Human Resource Management:

Behavioral tole theory which considers behaviors of the employee as one of the key to« positive
strategy impleraeniation, as its been believed by the theorists that by keepinga healthy alignment
between thepolicies of HR with business wide strategy, the sta8 can accomplish their expecied
role in the company, which could be proved asa key to make thebusinessa successful and
positive one.

Behavioral Role theory isa concept in sociology and in social pep udogy that considers mosi of
everyday activity to be the acting-out of socially defined categoñes (e.g., mother, manager,
teacher). Each rule isa sei of rights, duties, expectations, nouns, and behaviors thata person has
to face and fulfill.
2. RæoiwœBæMThæy:
Resource based theoiy, which suggests that human resource has the iequired susiainable
competiôve advantay for any company anä the mein reason for that is fini, HR is incomparable
and alsoa source which is non-subsôtvtahle ihr attomplishing the compétitive advantage.
The Resource-Cned riew isa oianageriàl framework used to deternüne the straiegic Resourcesa
firni can exploit to achiew suminable conipetiöve advantage. Barney's t991 anicle "Firm
Resources and Sustained Compeödve Advantage" is widely cited as a pivotal wnrk in the
emergence of theResource-based view.

In terms of the organization, the human capital theory and human resource
management mises a number of issues, namely: human capital issues (they relate to
atoacting, maintaining, developing and rewarding human resources in order lo create and
inalnaina stilled, detlicaie4 and motivated personnel).
Transaction cost theory posiis ihat ihe optimum organizationd souctuie is one ihat achieves
economic efficiency by minimizing the costs of exchange. The theory suggests that each iype
of transaction produces coordination costs of monitoring, conirolling, and managing transactions.

Slrategic planning suggests HRM planning. This view is

butn all aspeas.

i rational functions yet there are some strategic issues in these functions too.

Tichy defines that there are three management levels, namely: sirategic Along-ierin), managerial
(rtledium-tern) and operational (short-term). The author views that ihe HR functions performed
at the soategic management level are SHRM.
Themanagerial and operational level HR functions do not come under SHRM andwould rather
be considered as functional HRM activities.
 to some author, Tichy ct al (19ß4)., there are three management levels- soaiegic
(long-tern), management medium-ienn) and operational íshoø-term) ană HR functions
performed at the strategic management level is SHRM.
It is implied in the* writčtgs that managerial- and operational-management level activióes that
leaf with medium, an4 shox-term HR funcüons üo not come iuiüer SHRM. Rather, these are

the organization's strategy leading to the f SHfi

Toningion& Hall (1995) opine that ini e RM process, there are some elements and
in every such element there are certaini c aspects hese strategic aspects are colleoively

Æ,1ere jecis: the soategic and the funcfional.

to be idea of blending strategies. In tlús, when

n the content-focused approach,*f

organization’.sÜ y which leads to the emergence of SHRM.

entation-fiø:used Approach:
‹ view nrizauons do have some competiôve objectives that are achieved
øiisiness strategies. To formulate and implement such strategies appropriate HRM

appropriate types of HRM systems are required

Such HRM systems are strategic ind ihis approach can be termed as SHR
 QUALITY OF WORK LIFE:
The success of any organisation is highly dependant on how it attraas, recniiis, motivaies, and
retains iis workforce. Today's organisations need to be more flexible so thai they are equipped to
develop their worMorte and enjoy iheir commiimeni. Therefore, organisations are required to
adopta strategy to improve iheemployees' quality of work life {QWL) tosatisfy both the
organisational objectives and employee needs.
Quality of work-life or QWL can be defined as the total quality of an employee's woih-life at an
organization. When thequality of work-life is stable, productivity is bound ioincrease. So does
the level of employee retenfion. All in all, it seeks to benefit employees, their families, and the
organizatiDn as well.
When thequality of work-life is stable, productivity is bound to increase. So does the level of
employee retention. All in all, it seeks to benefit employees, their families, and the organizafion
as well.
Importance of Quallty of Work Llfe:
Many companies find that paying auention to the needs of employees can benefit the company in
terns of productivity, employee loyalty and company reputation.
QWL is importani because of the following reasons:

A growing number ofcompanies ihat focus on QWL impmve their relationships Atm the
stakeholders. They cancoriununicate theé views, policies, and performance on complex social
issues; and develop interest among their key stakeholders like consumers, suppliers, employees
etc.

Programmes which help employees balance their work andlives outside the work canimprove
productivity.A company's recognition and support through its stated values and policies of
employees' commitments, interests and pressures, can relieve employees' external stress.

Thls allows them to focus on their jobs during the workday and helps to minimize absenteeism.
The iesuli can he both enhanced produaivity and soenghened employee commiunent and
loyalty.

Work-Me strategies have becomea means ofattracting new skilled employees and keeping
existing ones sañsfied. Many jobseekers prefer flexible working hours as the benefit they would
look for in their job. They would rarer have the oppominity io work dexible hours than receive
an additional increment in annual pay.
a. More employees may siay ona job, return aftera break or iakea job with one company over
another ifthey can maich their needs beiier wiih those of their paid wort.
b. Tkis results m savings for the employer as it avoids the cost of tosmg an experienced worker
an4 recruiting someone new.
c. Employers who support their staff in this way often gain loyalty from thestaff.

4.3tediwesabseiiteeism.-
a. Companies that have family-friendly or dexible work pracfices have low absenteeism.
Sickness rates fall as pressures are managed better. Employees have better methods of dealing
with work-life conflicts than talking unplanned leave.
b. Workers (including the managers) who arehealthy and not ovet-stressed are more efficient at
work.

S.Improve Inc ‹pinfi;y o/working liver:

a. Minimising work-life role conflict helps prevent role overload and people havea more
saiisfying working life, Stilling their potential both in paid work and outside it.
b. World Me bahnce canminimise sari andfatigue at work, enabling people io have safer and
healthier working lives. Workplace sts and fatigue can contribute to mjuries at work and
home.
c. Self-employed people control their own work time to some extent. Most existing infomntion
on work-Me balance is targeted at those in employment relafionships. However, theself-
employed toomay benefit from maintaining healthy work habits and developing strategies to
manage work flnws which enable them tobalance one with other roles in their lives.
6. Clutches people it'ho would not otherwise u'orIt i+'ith jotc:
a. Parents, people with disabilities and those nearing retiremenl may increase their work force
paRicipation if more dexible work arrangements are made. Employment haspositiVe individual
and sotial benefits beyond the financial rewards.
b. Employee may also benefii froma wider pool of talent to draw ftom, particularly to their
benefii when skill shortages exist.
 a. Ina situation of conflict 1›etween work ind family, one or other suffers. Overseas studies have
found thai family Me can interfere with paid work. QWL maintains balance between work and
family. At the extreme, iffamily Me suffers, this may have wider social costs.
b. involvement in conunimity, niltural, sporting or other activities can bea benefit to
community and society at large. For instance, voluntary participation m school boanls of tnisiees
can contribuie io the quality of children's education.
While such activities are not the responsibility of individual employers, they may choose io
support them ascommunity activities can demonstrate good corporate citizemhip. This can also
develop workers' skills which can be applied to the work place.

Companies with QWL have employees with high degree of job involvement. People put their
best to the job and repori good performance. They achievea sense nf competence and march
their skills with requiieinenis of the job. They view their]obs ai satisfying the needs of
achievement and recognition. This reduces absenteeism and turnover, thlis, saving organisati0llal
costs of recruiting and training replacements.

job involvement leads to job commitment andjob satisfaction. People whose interests are
protected by their employers ezpezience Ngh degree oyjob satisfaction. This improves job

Many organizations, including Governments, NGOs, investors and the media, consider the
quality of employee experience in the work place when evaluatinga company. Socially
responsible investors, including some institutional investors, pay speciBc attention to QWL when
naking invesment decisions.

9rwrrr cmccrs:
A quality tirtle or quality contnl circle isi group of workers who do the same orsimilar work,
who mee reguhrly to identify, analyze and solve work-related problems. Ii consists of minimum
three and maximum nvelve members in number.
A quality citcle isa participatory management technique thate hsts the help of employees in
solving problems related to their ohm jobs. Circles are formed ofemployees worldng together m
 an operation who meet at iniervds to discuss problems of quahty and to devise solutions for
improvement. Quality circles have an autonomous character, are usually small, and are led bya
supervisor ora senior worker. Employees who pariicipaie in qualiiy cécles usually receive
training in formal problem-solving methods such as brain-storming, pareio analysis, and cause-
and-effect diagrams and are then encouraged to apply these methods either to specific or general
company problems.
The ‹t ›ôÎity CÎzCleS ôre fo‹zñeü IO fu1FüIô ly Of the f0lÏ0WtRg 0I›jeCtiVeS:

• To contribute towards thedevelopment of an organization.

• To createa healthy work environment such that employees find the place worthwhile to
WD£È
• TD explore the hidden potential of the individuals and drawing out the infinite
possibilifies.
• TD improve theproduct quality and the productivity of the organization.
- TD ililprove the team skills, capabililies, confidence and creafivity through educafion,
training, and participafion of volunteers in the circles.

VERGERS& ACÇUISITtOXS:

Mergezs:
A merger is an agreement thai unites two existing companies into one new company. Ttiere are
severd types of mergers and abo severd reasons why companies complete mergers. Mergers
and acquisitions are commo iy done to expanda companys reach, expand mto new segments, or
gztn nnrket share.
Mergen combine two sepamte businesses intoa single new legal enbty. True mergers are
uncommon because it's rcre fbr two equal companies to mutually bene6t from comtiining
resources and staB, including their CEOs. Acquiringa business is similar to buying an existing
business or fraiu:tiise.
n a merger, the hoards of directors for two companies approve the combination and seek
shareholders' approval. Post merger, the acquired company ceases to exist and becomes part of
the acquirigg company.
Mergen may also be distinguished by following two financing methods
I.Parcii‹uz ñferJers: As the name suggesis, this kind of merger occurs when onecompany
purchases another company. The purchase is made with cash or through the issue of some kind
of debt instnimeni. Ttie sale is taxable, which aitracis ihe acquiring companies, who enjoy the tax
benefits. Acquired asnts can be writien-up to the actual purchase price, and the difference
between the book value and the purchase price of the assets can depreciate annually, reducing
taaes payable by the acquiring company.
 2.Coiisoffdntton ñfergzo: With this merger,a brand new company is formed, anñ hoth
companies are boughi and combined under the new entity. The iax terns are the same as those of
a purchase mergnr.

Ina simple acquisition, the acquiring company obtains the majority stake in ilie acquired finn,
which does not change its name oralter its legal stricture, and often preserve the existing stock
symbol.
Ina management acquisition, also known asa management-led buyout (MBO),a company's
executives purchasea cDntrolling stake in another company, talñng it private. These former
executives often partner witha financier or former corporate officers, in an effort to help funda
transaction.
The acquisition helps to see the new market, customer base, and to obtain the synergy gains. I1
will not only give the edge ioa firm but will also bring maturity in the maturity in the operations
of the firln. Thus, acquisitions are considered as the sinning step towards the achievement of
market leadership.
An acquisition is where one company Aker control of another by purchasing its asseis or the
majority of iis shares. There are five main types of acquisitions:
J.P«tue creating— Value creatmg is wheres company acquires another company, improves its
performance and then sells it agaJn fora pro5t.
2.Cons lidañng — This is wherea company acquires anolher company toremove compefition
from an over-supplied market
3Accelerating — Accelerating is whena larger company acquiresa smaller company anduses its
greater resources to accelerate market access for the smaller company's products.

4Aeso rce acquiring — This is wherea company acquires other companies togain resources,
skills, intellectual property, technologies or market positioning they need, because ii is more com
effective than developing their own.
S.Speculating — Speculating is whena larger company acquéesa smaller company witha new
produa, with the aim of cashing in on iis future growth potential.
 HR AUDIT AND ACCOUNTING

TheAmerican Association of Accountants (MA) def\nes HRA as follows:'HRA isa process of

identifying and meaniring data about human resources and communicating tkis infomntion to
intereoed panics'.

• Providing cost value information aboul acquiring, developing, allocating and maintaining
human resources.
• Enabling managemenl tomonitor theuse of human resoiin:es.
• Finding depreciafion or appreciaiion among human resources.
• Assisting in developing effective management pracdces.
• Increasing managerid awareness of the value of human resources.
• For betier human resource planning.
• For beuer decisions about people, breed on improved information system.
• Assisting in effective uiilization of manpower.

• Replacement Cost
• Standard Cost
• Present value of future earnings
• Acquisifion CDst Method
• Expected realizable value
• Competitive Bidding Method
 According to Dale Yoder, ”Personnel audit refer io an examination and evaluation of policies,
procedures and practices io determine the effectiveness of personnel management."
ObjectivesofHRAudit
• To review wery aspect of management ofHR to deiermme theeffectiveness of mch
CFO SmiOFB MUdhO .
• Toseek explanation and information in respect of failure and success of HR.
• To evaluate implementation of policies.
• TD evaluate the perfonnance of personnel staff and employees.
• TD seek priorifies, values and goals of management philosophy.

Following are the approaches thai can be adopted by an auditor to evaluate the performance of
the HR department:

1. Comparative: In this approach, ihe audiior identifies any company usually the competitor's
company asa model. Then the results of the organization are compared with that of the model
C01I1J1ilI1'}f.
2. Outside Authority: The auditor uses the itandarâ set asa benchmark by the outside consultani
and then compares theorganization's perfornunce with that.
3. Stañstieal: Under this approach, the auditor develops the statistical measures of performance for
ihe existing organization's infomiation, such as turnover rates, absenteeism.
4. Cnmpliance: Here the audsor checks the past actions of the company to ensure that those
activities comply with ihe legal requirements and is in line with the company's policy and
procedures.
5. Management by Objective: mder this approach, the auditors check the performance of HR
personnel against the gnals set by the top management.

It is recommended to have an HR audit once ina year so that, the performance of the HR
department in terms of iis recruinnent and selection process, compensation plan, grading system,
layoff schemes and other HR functions can be checked. By doing so, it can be ensured that
Human resource practices are carried out at its best and is reducing the organization's liability as
a whole.
 IIRIS AND NEW TRENDS

fluman Resource Informaüon System(fIRIS):

Tanneiibauin defines HRIS as “a technology-based system used to acquire, store, manipulate,
analyse, retrieve, and distribute pertinent information regarding an organization's human
resources"

HRIS Functions: Functional HRIS must create an information system that enables an
assiinilatiDn of policies and procedures used lo manage thefirm's human capital as well as the
procedure necessary to operate the computer hardware and software applicafions. While
infOrIflatiDn technology a8ects Human Resource (HR) practices HRIS andHRIS adininistrafion
comprisea distinct supporting funcfion within HR. Some oftheHRIS functions include the
following:
a) ltitegrntfng ihe 'technologies of HJt: 1s a fact, that developments in Information
Technology have tlrainatically adected oadidonal HR functions with nearly every HR
function (example, compensation, staffing, and earning) experiencing some son of
reengineering of its processes. However, thia process of change has created significani
challenges for HR professionals renilting in the iransformation of oaditional processes
into on-line processes.
b) ZncreaM £J}icien‹y: Rapid computing technology has allowed more eansactions to
occiu with fewer fizeü Resources. lypical ezamples are payroü, üezîbte benefits
administration, and health benefits processing. Though iechnologies of early mainframes
provided significant efficlencies in these areas, the difference is that the record
processing efficiencies that were once only available to large firms are now readily
avaflableto amyorgamizaüonsize
c) Int eWnieness: Most often, as with processes, computer technology is designed
toiinprove effectiveness either by in terms of the accuracy of informaôon or by using the
technology to simplify the process. This is especially the case where large data sets
te9uifE IECORÖIiatiDR.
d) f2’-£hnbfed Processes: While many oftheapplication areas’ gains are through increased
effecöVeness and efficiency over manual processing, some are only possible using
coniemporaiy iechnologies. Mosi notably, computer-based (web-based) eaiiüng isa
growing area of HR praciice ihat was not available unül computer software was tteaied.
Ever compuier based mailing was not as practical as it is today because ii was
geographically dispeised until the iraining was upgraded from computer-based to web-
accessible oaining.
e) Cosf «nd be tent a/ Zi tZS.’ An HRIS system represenisa large mvestment decision for
companies of all sizes. Therefore,a convincing case to persuade decision makers about
 the HRlS 6enefiu is necessary. The common benefits of HRIS frequently cited in studies
included, improved accuracy, the provision of timely and quick amess io irrfonnaiion,
and the saving of costs discussed why the amuracy and timeliness of HRIS is very
impooani in rems ofoperating, controlling, and 34 planning aairities in HR

Producea greater number and variety of HR operations

Shilt the focus Df HR from theprocessing of transacfions to strate; HRM

Recent development in the area ofh mcs man ¡einent include treating the employees
as economic, socid, psychological ipirttual m â women. Ttie impooani aspects of
development ofhuman resources mai ment year show below:
s been sh .n resources development tHRD).
on iversity, teamwork and participative

o In the year 2005, shit from hierarchical structure to flexible and vimial stniciures.
o In the year 2006, HRM has become the core of strategic management level.
o In the year 2007, the concept of HRM has been relegated io human capital management.
o ln the yeaf 2008, emphasis has been on retention management and development of own
human resources by companies throne alliaices with univeuitiedcolleges. In the same
 year, there was decline in busmess operations due to global economic recession and

Challenges of HRM ia Indian Economy:

2. Gfobnlifefion: - Growing internationalisation of business has iis impact on HRM interms of
problems of unfamiliar laws, languages, practices, competitions, attitudes, management Lyles,
work ethics and more. HR managers havea challenge to deal with more functions, more
heterogeneous functions and more involvement inemployee's personal life.

2. Corporate Pte-orgnnizntions: - Reorganization relates to mergers and acqnisitiDns, joint

ventures, take over, internal restructuring of organizations. In these situafions, it is difficult to
imagine circumstances that posea greater challenge for HRM than reorganizations itself. It isa
challenge to manage employees' anxiety, uncertainties, insecurities and fears during these
dynamic trends.

$. New OrganHaRonal fomn: - The basic challenge to HRM comes from the changing
charaaer of competitions. The competition is not between individual finns but between
constellations of finn. Major companies are operating througha complex web of soategic
alliances, forgings writ local suppliers etc. These relationships give birth to compleiely new
forms of organizational siniaure, which highly depend upona regular exchange of people and
information. The challenge for HRM is to cope with the implications of these newly networked
relations more and more, m place of mom comfortable hierarchical relationships thai existed
within the organizations for agts in the past.
4. Changing Hemogrnphics o/ WorQorce: - Changes in workforce are largely rejected by
dual career couples, large chuitk of young blood beMeen ageoldsuperannuating employees,
working mothers, mnre educated and aware workers etc. These dynamic workforces have their
own implications fâr HB managers and from HRM point of view isa true challenge to handle.
5. Changed employee expectations: Wilh thechanges inworkforce demographics, employee
RX]KClAkDIl$ dlld attitudes have also Oansformed. Tradifional allurements like job security,
house, and remunaations are not much altraclive today, rather employees are demanding
empowerment and equality with management. Hence’ it isa challenge for HRM to redesign the
profile of workers, and discover new methods of hiring, earning, remunerating and motivating
employees.
6. Nftv Industrial Relations Approach: - In today's dynamic world. even unions have
undersiood that strikes and miliiancy have losi their relevance and unions are greatly affected by
it. The made union membership has fallen drasticdly worldwide and the future of labour
movement is in danger. The challenge before HRM is to adopta proactive mdustrid relations
approach which should enable HR specialist to look into challenges unfoltling in the future and
to be prepared no convex them into oppouunities.
7. 2teiiewed Peopte -oftis: - The need of today's world and business is the people's approach.
The stnicture, soaiegy, sysiems approach which worked in post war era is no more relevani in
today's economic environment which is characterized by over capacities and intense
competition. The challenge of HR manager is to focus on people and make them justifiable and
sustainable.
8. Managing theManagers: - Managers are unique tribe in any society, they believe they are
class apart. They demand decision-making, bossism and operational freedom. However inthe
post liberalizafion era, fieedom given to managers is grossly misused tDgetrid of talented and
hardworking junior The challenge of HRM is how to manage this tribe? How to make them
realize that the freedom given to them is to enable them make quick decision inthe interest of
the organization and nDi to resort to witch hunting.
9. Weaker Society interests: - Another challenge for HRM is lo protect the interest of weaker
sections of society. The dramatic increase of women workers, minorities and other backward
cominmities in the worMorce has resulted in the need fot organizations to re-examine their
policies, practices and values. In the name ofglobal competition, productivity and qudity the
interesis of the society around should not be sacrifice‹L It isa challenge of today's HR managers
to see that these weaker sections are neither denied theé rightful jobs nor are discriminated
againsi wlñle in sender.
20. ContribHi20lt f0 the M££'fSS 0@fHt(Zntions: - The biggesi challenge to an HR manager is
to make all employees contribute to the sucess of the organization m an ethical and socially
responsible way. Because society's well-being toa large extent depends on its organizations.

Emerging BRM Concepts:

Human Resoume management isa process of bringing people an organisation together so that
the goals of each are met HRM as we see today has gradually evolved through the industrial
revolution era, trade unionism era, scientific management era, human relation movement era,
behavioiirial science era, personnel specialist and welfare era. Personnel management aimed
largely at not-managers whereas HRM Oeats management development as an equally important
issue. Traditionally, personnel management viewed organizational culMe and leadership as
issues concerned with organizational development. The scope of HRM is so wide and it covers:
personal aspect, manpower planning, recniitinent, selection, placement, oansfer, promotion,
layoff and retrenchment, remuneration, incentives etc.
Emerging HR Trends:

Ome of the most predicted HR trenh is the cultiire of review›s and co

i› orkplace. The rnethods that people use to give feedback has ch
leadBl’ Ofa rnanagel’, you Should f0cus on imbl’0ving your deQfil’tme
C0l1S1l’UCiiv8 feedback. According io several studies. mosl e
reviews or feetlback instead of the annual performance re
helps iliem io jou where they iiiighi h8 g0ilJg \Yl’0lJ§,

also help
significant loses.

alle io speed up gr or ’th aad hotice th

perfol‘1I10llCe management to both iiidi
7. Use o{ Online Skill Assessments : Online assessments have also becolne iliCfeasillgly
Eff1bl0}’8? US lIlPllt is ro lollger jllsl ilb0tll
is th Tait of ipanagenieM strategy.
In today’s hi;;hly coiiipeiiiii'e global ec0lJOlll ', izaiioii has to liare « ;;rip ofi h«i exactly
Boxall. P. (1992) defined International Human Resource Management (IHRM) as 'concerned
with the human resource problems of multinationd firms in foreign subsidiaries (such as
expatriate management) ormore broadly, with the unfolding HRM issues that are associated with
the various stages of the internationalisation process. (Boxhall, P. 19921.
Mark Mendenhall (2000) sought to be more specific by outlininga number ofcriteria telerant to
a definition of IHRM:

1. IHRM is concerned with HRM issues that cross national boundaries or are conducted in
locations other than the home country headquarters.
2. IHRM is concerned with the relationships beMeen theHRM activities of organisations
and the foreign environments in which theorganisafions operae.
3. IHRM includes comparative HRM sndies; e.g. differences in how companies in Japan,
Thailand, Austria and Switzerland plan for upgrading of employee skiils and so on.

IHRM Approaches:
a) Ethnocentric: itey posiiions filled hy nationals of pareni company
b) Polycentric: Posi country nationals recniited to manage subsidiary in iheir own couniry
c) Geocentric: besi people recniited, whatever iheir nationality
d) Regiocentric: best people recruited within region in which the subsidiary operates te g.
EU, USAI.

IHRM-Training anä Development:

TraîriJng and development ôicreases in compfezity as MNEs move abroad.

T¡'pes of trainipg and development depends ona nnmber Dffactors:

• The degree to which management is centralised.

- The types of workers employed insubsidiaries or joint ventures.
- The importance of branding, and the extent to which employees are expected to redect

• The ciiltuial expeciations of training.

• Ina global company, the training may well be cenoalised so that suppheu, employees
and distñbutou are aware ofthe brand image thai needs to be communicated.
E.g. in Fout raining progiammes are set up centrally, and then translaied and delivered to all
inaifl SilppliePS, SilbSidiaiies dfld diStftbut0lS.
Cross-Cultural Awarenen:
Support provided for employees moving to overseas subsidiaries:
• Envinnmental briefings
• CiJturat orientation
• Culturat assimitaüon

• 5exsiÔvitypainüg
• Fîelderpeüence.

International Human Resource Activities:

International human resource activities include major operative human resource functions such
as procurement, which involves human resource planning and indut:tioti. The second major
acfivity is allocation; ii involves the plan for using human resources srnong various subsidiaries
or projecis. Effective utili2ation of hitman resources is the third human resource activity and
helps in maximizing the skills and efficiency of the human resources and productivity.
The activities of iniemaiional human resource activities cover all the major activiiies like HR
planning, recniitment, selection, orientation, placement, raining& development remuneration,
and performance evaluation.

Categorization of Countries in the Concept ofIHRM:

Intheconcept intematiDnal h¥man resource management thecountries having headquarters and
subsidiaries are categDrizel as follows.

• Home country: Where theheadquarlers is located

• Host country: Where thesubsidiary is located
• Tlüid/other countries: Thèse arethesottrces of finance and human resources

Types ofEmployees inIHRM:

Thename international human resource management itself indicaies ihat human resources are
recruited from various countries. Here naiionals of various couniries coniribute their slñlls and
efficiency for the growth of the organization. They are mainly three types, parent or home
counoy nationals, host couniry nationals, and third country nationals. These three types are
differeniiated on the basis of citizens of headquarten of the company, citizens of the subsidiaries
of the company, and citizens of various countries.

T. ZZoae country or Parent Country Nafi0nals (PCNS)

Home country nationals are the employees of the organization and these are the citizens of the
country where theheadquarter is located.

D. host Countrys Nationals (DCNs)

Host country nationals are the ciiizens of lhe country where thesubsidiary is located or when any
organization recniiis the nationals of the country where thesubsidiary is locaied.

Tiiéd country nationals are the citizens of the other countries, and they are neither the citizens of
the counuy where the headquarteo is located nor the citizens of the country where the subsidiary
located.

Staffing Approaches:
Depending on therecruitment of key managerial positions for multinational companies, different
approaches are explained.

4cmt6in$ io ethnocentric approach, organizations believe that the employees of home country
nationals can perform better io fhlfi 11 the organization's mission. vision, and objectives. so all the
key managerial positions of the subsidiary are filled with expairiates from the home country.
In polycentric approach, all the key managerial positions are filled with the employees of the
host country nationals. Many companies me adopting this approach because they believe that
host country nationals can help in Mfilling the objectives of the organizations witha better
undemanding ofthe locd culnire, beliefs, and vdues. Here subsidiary is given freedom to take
decisions and formulate strategies according to the local business environment and vision and
mission of the headquariers.

Geocentric approach:
According to geocentric approach, organizaôons hire neitJier the home country naôonals nor the
host country naôonals preferably. They recruit employees on the basis of the concept right
person for the righi job. Here organisations hire right pensons or suitable employées for the
effeaive runiüng of the business operations, inespettive of the nationahty. Geocentric approach
facilitaies competitive advantage by hiring cost talented and éligible people.

£îpafriate treîniztg and 4nzfopment:

While hiring employees for mtemational assignments, the organization needs to provide beuer
training for the employees The skill set is not only the constraint to decide the training needs,
and it is necessary for all the levels of employees to fit in the international environment and
culture. Expatriates may face problems with the local language, culture, and beliefs of the local
people, managing personal and family life in the completely new envirDnments. Proper training
and development motivate the employees to perform better in achieving the organization's
objectires effectively.

/rnanterfonal enviroiunmr bird componexfs o/couip4nsaJo/t:

The component ofexpatriaie compensaiion vary wiih the domestic compensation siandanls, so
the organizations need to fulfill various requirements of the expatriates while hiring. Companies
need to provide housing allowance, travel allowance, education allowance for expatriates
children, relocaôon allowance, cost of hving adjustment packages, and currency differentid
packages, etc.,
 9 PERFORÉ\fANCE APPRAISAL
.Dale Y0dflF, TerfOnRdIlKR appraisal iRClUdes all formal procedures used to evaluated
personalities and contribufions and potentials of group members ina working organisafion. It
isa continuous process to secure infornlafion necessary for making correct and objective
decisions on employées."

£teyel, "It is the process of evaluating the performance and qualificafions of the employees in
terms of the requirements of the job for which he is employed, for purposes of administration
including placement, selection for promotions, providing financial rewards and other actions
which require differential treatment among themembers ofa group as distinguislied from
actions affecting all members equally."
9.1 What is Performmce?
What does thR temi performance actually mean? Employees are performing well
when they areproductive. Productivity implies both KORceni foreffectiveness and efficiency,
effectiveness refers to goal accomplishment. However it does!not'speak of the costs incurred
in reaching the goaL That is where efficiRncy comes in. Eificiency evaluates the ratio of
(Il{iutS cORSllnled t0 outputs achieved. The greater the Dutput fpra given input, the greater the
efficiency.

Appraisals are judgments of the characteristics, traits and perfomiance of others. On

the basis of these judgments we assess llie worth orvalue of others and identify what is good
Or barL iR indUStry perfOnRdRCe appraisal is a systeIRd C Rvaluafion of employees by
supervisors. Employees also wish to know their position in the organization. Appraisals are
essenfial for mating many administrative deñsions: seleclion, training, promotion, transfer,
wage andsalary adininistrafion etc. Besides they aidinpersonnel research

There are numerous methods in use to appraise employee perf0rmance depending upon the
size and nature.of the organizafions. A conmon appmach toassess performance is to usea numerical
or scalar .rating systmn whereby managers are asked to score an individual againsta number
ofobjective9attributes.
In some companies, employees receive assessments frnm their manager, peers, subordinates,
and customers, while also performing a sell-assessment. The most popular methods used in
theperformance appraisal process mn lie divided in two categories:

Tkesemethodsiniude IùmJöngmmhodq €/a@üc Raông Scale metkoB CñicalInddenG

Method, Checklist Methods, Essay Method and Field Review Method.
Modem Appraisal methods include Management by Objectives, 360 — Degree Feedback
Appraisal, Behaviourally Anchored Rating Scales, Assessmein Genre, Human Resource Accounting
and Balanced Scorecard.
I.Traditional Trait Appraisal Methods:
1. Ranking Methods:
Ranking can.be based on thefollowipgs:
(a) Straight Ranking Method:
This is one of the oldest and simplest techniques of performance appraisal. In tkis
method, the appraiser of evaluator ranks the employees from thehest to the poorest on the
basis of their overall performance. It is reryuseful fora comparative evaluafion.
(b) Paired Comparison Method:
It isa better way of compañson than the straight rañi0ng method. In this.nietIiod each
employee is compared with all others ona one-.to-one basis, and then ranked..

(c) F«écea Disiribui:on Meixoa:

It isa method of appraising employees on the basis ofa predetermined distribution
scalR. The evaluator is asked to rank 10% RITI IO CS Ill the test category, 20% in the next
category, 40% in the middle category, 2086 inbefore the low, and 10'it› in the lowest brackets.

The method operates imder an assumption that the employee performance level
conforms toa normal statistical distributiar£ Generally, it is assumed that. employee
performance levels conform toa bell+haped curve.

2. Graphic JtiitiRg Scale fethod:

In this vriethod, an employee's quality aád quantity of work isassessed ina graphic
scale indicating different degrees ófa particular trait, i.e., hehavior or characterislics as they
mlate to work performance.

For examplea tralt like Job knowledge mam be judged ofi the range of average, above
:average, outstanding or unsatisfactory or on the basis of numbers (1,2,3,4, 5, and so on). The
list of factors to be appraised is dependent upDR thecompany requirements.

3. Critical Incidents Methods:

In this method, the evaluator rates the employee on the basis of crifical events and
how the employee behaved during those incident. It includes hoth negative and positive
Oints. The negafive point incident might be damage tomachinery because of not following
safety measures.

Posifive point incident may be staying heynnd working hours to repaira machine. The
drawback oftkis method is that the supervisor has to note down thecritical incidents and the
employee behavior as and when they occur.

4. Checklist Methods:
 The appraiser is givena checlüist of several behaviours, traits. or job characteristics of
the employees on job. The checklist containsa list of slatenienis on the basis of which the
evaluator describes the on the job perfõrniance of tke employees. If the rater believes that
eïnployee does havea particular listed trait it is marRed asposiöve check, otherwise the item
is.left blank.
The company hasa choice to choose Rither Weighted Checklist Method or FOrCfd
Checldist MethotL
5.Essay Appraisal Method:
It is also known as“Free Fomi Method”. It involvesa descripäon of the performance
ina number ofhroad performance criteria of an individual employee by his supeñor based on
thefacts and often supponed by examples and evidences. A major drawback ofthe!nle0iod is
how to keep thebias of the eraluator away.

6..Field Review Method:

IntNs method,a representaõve of the HR department ora training ófficer discusses
and interviews the supervisors to evaluate and rate their respective inibordirntes. This method
is very time consuming mediod. However, this method helps to reduce the superiors'
personal bias.

At this stage ìt wočld not be out of cozitezt.to. menüon sòme of thelimitations

associated with trait-baseümethods of performance evałuaüon. Fżrst, the trait-
based methods are baseü upon traits (like integrity and consciousness) which may not be
directly rélated to SuEcessfut job perfómiance. An employee can change behaviour, but not
personality.
An employee who is dishonest, may śtop stealing, but is likelyto involve the moment
hefeels the threat of being caught is grime. Second, trait-based methods areeasily inßuenced
by ‘office politics’ and is &u , less.reliable.

1. Management by Objectives:
The concept of ‘Management by Objectives“ tMBO) wasgiven by Peter F. Drunker in
1954. It can he expressëd asä process whemhy theemployees and the superiors ćome
together to identify common goals — the oqşmizafional goals as well as individual goals, the
standards:.to be taken as the niieria for measurement or’ their perfòrniance and contribufion
and üeod1ng thecoiuse of action to be foflowed.
Thus, the essence of MBO is participafive gøal setting, choosing course of actions and
decision making. IdRally, when employees themselres have been involved with the goal
setting and the choœing thecourse of action to achieve them, they are more committed.
 •° gura1 a.s. -r>+e -no r•• >
2. 360 -Degree Feedbaclt Appraisal Metbod:
360-degree feedback, afSO know-n as multi-rates feedback", is the most
con prehensi e appraisal c'l ere the feedback about tle employees" performance comes Iron
alt the sources that come incontact with the employee on hisjob.

These sources include superiors, sutiordinates, peers, team members, customers, and
suppliers apart frDlfi the employee Idmself (see Figure 18.10), who can provide feedback on
the en ployee's job perton»ance.

Figure 8.10: 360-oegree Reapondenta

Self-appraisal gives a chance to the employee to look at his/her strengths and

weaknesses, his achievements. and judge his ore n performance (in University of Delhi’s
Master's in International Business. faculty meiriber is not only evaluated by the head of
department but also by students).

Subordinates (part of internal customers) evaluation gives an opportimity to rate the

employee oti the parameters like communication and motivating abilities, superior's ability to
delegate the work, leadership qualities etc.

Evaluation by peers can help to find employees' abilities to work ina teatn. co-
operation and sensitivity towards others. Thus an evaluation by one and all isa 360-degree
review and the feedback is considered to be one of the most credible. Some of the
organisations using this method include Wipro, Infosys, and Reliance Industries etc.

3. Behavi0uratIy Anchored Ratiog Scales:

Behaviourally Anchored Rating Scales (BARS) isa modem technique which isa
combination of the graphic rating scale and critical incidents method. It comprises
predetermined critical areas of job perf0Hnance or sets of behavioral statements describing
importanl job performance qualities as good orbad (like the qualities such as inter-personal
relationships, adaptability and reliability, job knowledge etc.).

The typical BARS includes seven or eight performance behaviours each one
measured by a seven-or-nine point scale. These statements are developed from critical
incidents.

In this method, an employee's actual job behaviour is judged against the desired
behaviour through recording and comparing the behavior with BARS. Developing and
practicing BARS needs expert knowledge.

4.AssessmentCenters:
Assessment centers area contribufion of German psychologists. The main feature of
assessment centers is that they process. Assessment Centers consist of many multiples.

a. Multiple competencies to be evaluated for ina candidate.

b. Multiple observers to e1ñrdnate the subjectivity and increase objectivity involved in the
process.

c. Multiple participants: 18 — 21 in case of TMTC (Tata Management Training Centre).

d. Multiple exercises: Eaercises like role plays, case analysis, presenlations, group
discussions etc.

e. Multiple simulations: These could be creative, crisis or exploitative type of simulations.

f. Multiple observations: Each observafion is observed at least twice. There are five main
ways in which evaluation is made.A group of participants takes part ina variety of exercises
observed bya team of Oained assessors who evaluate each participant againsta number of
predetermined, job related behaviours. Deñsions are then made bypooling.

5. £tuman Resource Accounting Method:

Human resources are valuable assets for every organization. Human resource
accounting method values the relative worth of these assets in the terms of money. In this
method lhe valuation of the employees is calculated in terms of cost and contribution to the
employers.
 The cost of employees includes all ltte expenses incurred 0n them, viz., their
compensation, recruitment and selection cosls, induction and training costs etc., whereas their
contribution includes the total value added (in monetary terns).

The difference between the cost and the contribution will be the performance of the
employees. Ideally, the contribufion of ltte employees should be greater than the cost incurred
on them.

6. Balaoced Scoze Card:

It was developed by Robert Kaplan and David Norton in 1990s. The purpose of
balanced scorecard is to evaluate the organizafional and employee performance
inperformance appraisal management pT0cesses. The conventional approach measures the
performance only ona few parameters like the action processes, results achieved or the
bnancial measures etc.
The Balanced scorecard providesa framRWork of different measures to ensure the complete
and balanced view oftheperformance of the employees. Balanced sc0rRCdfd focuses on the
measures that drive perfomiance.

The balanced scorecard has two basic characteristics —a balanced set of measures
hased on four measures (financial — profits, market share. ROI; customer — perspective about
organization loyalty to firm, acquisifion of new customers; internal business measures —
.infrastructure, organisational processes and systems, human resources; and the iimovation
and learning perspective — ability to learn, innovate and improve) and linl0ng these measures
to employee performance. Senior managers are allocated rewards based on their success at
meeting or exceeding the performance measures.

9.2 Pezforoiaace Appzaisat.Process:

1. Setting the Performance Standards:

The first step in the performance appraisal process is the setting of standards of
performance expected .from the employees. The standards set should be the line with the
objectives and the mission of the organisation.

Fiirthér the standard set must be realistic and attainable. If imrealistic and unattainable
standards are set, it will de-IROfiVatR dRd demoralise the employee. Hence care should be
taken while setting the standards.

2. Communicating thePerformance Ttnndard to theZmplayees:

it is not enough if just the standards are fixe‹L The expected level 0f performance
should be cDmmunicated totheemployées so that they arRall Well aware of what is expected
of them.

8. Measuring theActual Performance:

This is a crucial step in the performance appraisal process. Here the actual
performances are measured. There arevarious methods ofmeasuring theperformance.
4. Comparing theActual butt theTtøndard Performance:
Once the standard levels of performance are set and the actual performances are
measured, the neat step will be the comparison of the acnial with the standard performance.
This comparison will enable the determinafion of the gap between theactual and the expected
perfotmance; such gaps can be bridged through training and development.

S. Providing Feedback
The performance appraisal process does not end with mere evaluation .of the
performance. It is essential to provide feedback to the employees on their performance. This
wilt hélp the employees to identify the weak areas and iniaate acüons to Overcome thent.
Such feedbačk motivates them toperfoim better ùt future by avoiding the repeüõon õf the
same mistakes.

6..Znitinting Corrective fictions:

Whena gapis found between theactual and the expected level of performance,
conecñve actions should Łe undertaken. By analyzing the reason fora gap, proper acôon
should be taken so that the gap is hridgeif. When theacnial and the standard performance
match there is no need for any correcöre action.
 Dale S. Beach defines raining as ‘the organized procedure by which people learn kiiou'ledpe
aRd/or skill foro definite purpose’. Training refers io ihe teaching and learning auivities carried
on for the primary purpose of helping members of an organization acqirtre and apply tire
lmowledge,skMiadüüesandznimdesne dedbyapMicuhrjobandocganuzuon.
According to Ed» in Flippo, ‘training is the act of increasing the skills of an employee fitdoing
a particular job’. '

Training and Development isa subsystem of an organization and core fuhcñon ‘of human
resource management. It ensures continuous skill development of employees working in
organisation and habituates process of learning for developing knowledge towork Training and
DevDlD Inmt is the foundation for obtaining quality output from employee's.

Importance ofTraining and Development:

F0r COIlipiillieS I0 keep iinpf0Viilg, il iS ihlp0nini 'f0r 0rgdili2aÔ0itS lo hàVe
continuous tiaiiüng and development programs for . theé employées. Competiôon and
the business envinnment 1‹eeps changing, and heuce it ïs critical io keep leasing and pick up
ileW skills. The iinp0rlailCe 0firaiRillg arld deVel0pmilt iS 8S f0ll0aS:
• Optimum utilization of Human rcsouries
• Dcvclopmcnt of skills .
• To increase ihc pioduciix'ity '’
• To provide the zeal oL learn spirit
• For improvement of organization Nture
• To improve quality, safety
• To increase profitability
• lmprox'e the moraie and corporate image

Ùaining ànd developmenl isa continuons process as the skills, knowledge and quality of work
needs'constani improvement. since businesses are changing rapidly, it is criôcal that companies
focus on oaiiüng their employées afier constantly moniioring them& developing their overall
peuonality.
Steps /or coining rind dnefopm•ni processes nre:
t. Determine be need of earning and development for individuals or ieains
2. Establish specific objectives& gods which need to be achieved
3. Select the methode oftraining
4. Conduct and implement de progams for eoployees

Training Process:
Step 1: beide if Training is needed:
The first step in the training process isa basit one: to determine whethera problem can tie solved
by training. Training is conducted for one or more ofthese reasons: 1) Required'legally or by
order or regulafion 2) to imprnve Job skills or move intoa different positions 3) for an
organization to remain competitive and profitable. If employees are nnt'performing their jobs
properly, it is ofien assumed that training will bring them up tostanrlard. This may nDt always be
the case. Ideally, training should be provided before problems or accidents occur and should be
maintained as part of quality control.

Siep 2: Determine What Type ofTraining is needed:

The employees themselves can provide valuable information on the raining they need. They
know whai they need/wani to make them better at their jobs. Jusi as1‹ them! Also, regulatory
c0nsideraIi0nS nlay ret¡liire cntain trdiniilg Iii. certiill induslfies drl6/0r j06 claSSificdli0lls. Once
tire kind of earning ihat is needed has beeii.determined, it is equally imporiani to determine whai
kind of training is not needed. Training should focus on those steps on which improved
performance is needed. This avpids unnecessary time lost and focuses the raining to meet the
needs of tire employees.

Step 3: Identifjrtag Gnab andObjectives

Once theEmployees' training needs have been identified, enlplDyers can then prepare for
the training. CleNy stated training objectives will help employers comrnimicate what they want
their employees to do,to do better, or to stop doingl Learning objectives do not necessarily have
tobe writiefi, but in order for the training to be as successful as possible, they should be CLEAR
andthdtighï-oyt before the training.begins.

Step t:,.lmp1ementlng the Tralnlng:

Training should be conduaed by professionals wiih knowledge and expeuise in the given subject
area; period. Nothing is worse than being ina classroom wiiii an instnicior who has no
knowledge of what they are supposed to be ieichingl Use in-house, expefienced tdent or an
outside professional training source as the best option. The training should be presented so that
its organization and meaning are clear to employees. An effective raining program allows
employees to parficipate in the raining process and to practice their skills nd/or knowledge.
Employees should be entouraged to become involved in the earning process by participating in
discussions, asking questions, contributing iheé knowledge and expeuise, leaning through
hands -on experiences, and even through role-playing exercises.
Siep 5: Evaluation Training Program:
One way to make sure that the training program is accomplishing its goals is by using an
evaluation of the training by both the students and the insnictors Training should have, as one of
its critical components,a method of measuring the effectiveness of the training. Evaiuatiirn will
help employers or supervisors detemñne theamount oflearning achieved and whether or not an
eniplDyee's performance has improved on the:job asa result.

Teclmiques ofTraining:
I. On-the- job Training
11. Off-thmjob Training
111. Sensitivity Training ..
I.On- the- Job Trainings fOJT):
When anemployee learns ihe job in actual wor1nng'site in real life situation, and not simulated
envéonmeni, ii is called OJT. Employee!learns mile working. Take the instance of roadside
mechanics. Small boys working there as helpers learn while helping the head mechanit. They do
not learn the defer andysis and engke'repairing skills in any classroom on engme models.

Tlñs type of training, also Jtnom ’as job instruction training, is the most commonly used method.
Under this method, tlie‘ individual is placed on .a regular joh and taught the skills necessary io
perform that job. The trâinee'leams under the supervision and guidance ofa qualified worker or
insnictor.
On-The-Job Traiivrag Methods
a) Job ’Rotation: This type of training involves the movement of thetrainee from one job to
another The trainee receiVes job ltnowledge and gains experience from his supervisor or trainer
in eath of the different job assignments. Though this method of training is common in earning
managers for generd management positions, trainees can abo be roiated from job to job in
workshop jobs. This method gives an oppouunity to the trainee io undeutand tire problems of
employees on otiier jobs and respeci item.
lb) Conclñng: The trainee is placed undera particular supervisor who func0ons asa coach in
training the individual. The supervisor provides feedback to ihe trainee on his perfonnante and
offers htm some suggesöons for iinprovement. Often the uainee shares some of theduôes and
responsibilities of tire coach and relieves kim of his burden.A lirnitaôon of tkis method of
aaiiüng is tliai ike oainee may noi have the freedom or opportunité to express his own ideas.
te) Job Instruction: This method is also known as training ihrough siep by siep. Under ihis
method, warner explains the matrice ihe way of dong ike jobs, job knowledge and sMls and
allows finn to do flic job. The trainer appraises the performance of thetrainer, provides feedbacii
information and corrects the trainer.
(d) Cnmmittee Assignments: Under thecommittee assignment, group of trainees are .giren and
asked to solve an acnial organisational problem. The trainees solve the problem, joinfly. It
develops team work

(e) Apprenöcesliip: Apprenôceshîp isa formalized method oftraiiting cunlculnm program that
combines classroom educaôon with on the-job work .under close supervision. The training
curriculum is plaiined in advance. and conducted in careM s¡epi from ilay to day. Most trade
apprenôceship programs haVea duration of three to four yens beférë an apprenôce is considered
completely accomplished in that trade or piofeSGÎOR. This method is appropriate for aaining in
crafis, trades and technical areas, especially when pnifici«ncy ina job is the resuli ofa relatively
long uaùüng or appreniiteship period, e.g., job ofa ttaftsman,a machinist,a primer,a iool
ntaker,a panem designer,a raechanic, cie.

II.Off-the-job Training " "

OU-the-job paining is conducted ina fication specifically designated for gaining. It may be near
the workplace or away from work, ata special raining cenxe ora reson conduciing the warning
away ftom tile workplace ndnimlze distractions and allows trainees to devote their I\ill attention
to the iziateria1 being taught.howerer, off-the-|ob training programs may not provide as much
Dansfer of raining to:the actual job as do on-the-job programs.
Many people equate"off-thmjob tzaînîng with the.lecture methoü, but in facta very wide variety
of ntethods can bè ùsed.

"OfftheJeti Training“ Methods

1. Clnssroom Lectures: under the off the job meihods of training, dassroom method or lecnire
metliod is well-know toearn while collar or managerial level employees in the organisation.
Under this method employées are called to the room like that of classroom io give aaiiiing by
warner in the fomi of lectures. This meihod is effectively used for the purpose of teathing
administrative aspecis or on management subject io make aware of procedures and to give
inStruCti0RS 0n pdrtiCillar l0pic.
2. Autlio-Visual: Providing warning by way of using Films, Televisions, Video, and
Presentations etc. This method ofraining has been using successfully in education instiniiions to
train their students in subjects to understand and assimilate easily and help them to remember
forever. New companies have come up for providing audio visual material for students in their
concern subjecu. ln be corporate secior, mainly in cusiomer care centres employers are giving
raining to their employees by using audio visuals material to reach how to receive, talk and
behaviour with be customer.
3. Simulation: The simulation method oftraining is most famous and core among all of the job
training methods. In the simulation earning method, trainee will be trained. on the Especially
designed equipment or machine seems to be really used in thefield or joh..Bu1; those equipment
or machines arespecifically designed for traininga trainees were making them.ready to handle
them in thereal field or job. Tits method of planning is mostly used where very expensive
machinery or equipment used forperforming Job or to handle that job.

4. Vesttbule Tmïatag: Mostly this methoü óftraining will be”úéed to train teclmica1 staff, ollïce.
staff and employees who deal with tools and machines. Employees learn their jobs on the
equipment they will be using, but de iraining is conducta away from theactual work door by
bringing equipment or tools to ceuain place when ttaiiurig is provided, but not work place.
Vestibule training allows employees to geti full feel for dokg tast without red world pressures.
Additiondly, it minimizes the problem of transferring learning io ihe job.
vestibule oainmg is provided io employees whin new oradvanced equipment or tools ineoduced
in to the organisation to doa particular job £y using them. For this purpose such equipment is
brought toa separate place to .give demonstration and main how to use and tltai handle ii by
employees safely.

5. Case Studies: It isa written desoiption of an actinl situation in the pasi in same organisatiDIl
or somewhere else and!lrainees are supposed to analyze and give their conclusions in writing.
Tkis is another excellent method toensure full and whole hearted participation of employees.and
generates good interest among them. Case is later discussed by instructor with all the pros and
cons of each optioñ. It is an ideal method to promote decision-making abilities witkin the
constraints of liniited data.

6. Role Pla Duringa role play, the trainees assume roles and act out situations connected io
the leamirig concepts. It is good for customer service and training. TNs method is also called
‘róle-revénal’. ‘socio-drama’ or ‘psycho-draMa’. Heie traioees aci oui a given role as ihiy
would ina stage play. Two or more trainees are assigned roles ina given sination. which is
explained io the group. There are no written lines to be said and, naturally, no rehearsals. The
role player have to quickly respond to the situation that is ever changing and to rear io it as
they would in be real one.
7.mogearmeAmtmcéons:TÜsinvohesiwOesenülelemenu:(a)asep-bysepseüesof
biuoflmowk e,eahbfidmguponwhatsgonebefoe,and(b)amechximfopesnüg
theseries and checléng on the Irai»ee’s knowledge. Questions are asked in proper sequence and
indication given prompdy whether theanswers are correct.

This programme may be carried out witha book,a manual ora teaching machine. li is primarily
used for teaching faciual knowledge such as Mathematics, Physics, etc.

8. Management Games: Management Garnet with computerized management games, rainees

divide mto five or six-person groups, each of which competes with tile others irta si?ñuIated
marketplace. Each group typically m‹tst decide, for example. ” ”.”

1. how much tospend on adverñsing. .

2. how rauch to prnduce;
3. how much inventory lo maintain, and
4. how many ofwhich product to produce. ’
Usually, the game ilself compressesa two or three-yeai period.iiito diii; weeks, or months. As
in the real world, each company team usually can't seé whit .decisions (such as to boost
advertisingl the other firms have made, although these delirious dii affea theé own sales.
Management games tan be effective. People learn best by,béing involved, and the ganes can
gain such involvement. They help trainees develop their problem-solving skills, as well as to
focus attention on planning raiher tiian jusi putting out flies. The groups abo usually elett their
or officers and organize themselves. This can develop leadership skills and foster cooperation
adieamwok. ' :

Sensitivity oalcing involves .s\ich groupings as -T groups IT for training}, ertcounier

groups, laboratory training:groups,.and human awareness groups are all names usually assnciated
with what is known as sensitivity training.
Sensitivity training ’about mal0ng people understand about themselves and others reasonably,
which is done my developing intliem social sensitivity and behavioral dexibility.

• S.ocial sensifivity in one word is empathy. It is ability of an individual to sense what

others feel and tkink from their own point of view.
• Bebavioral dexibility is ability to behave suitably in light of understanding.

Proceéare ofSensitivity 3Yainhig

Sensitivity Training Program requires three steps:
1. Unfreezing the old values -I1 requires that thearainees become aware of ie inadequacy of the
old values. This can be done when the irainee faces dilemma in which kis old values is noi able
to provide proper guidance. The frst step consists ofa small procedure:
 • An unstnicnired group of 10-15 people is ferried.
• Unstnicnired gtoup without any objective looks io the earner for its guidance
• But the trainer refuses to provide guidance and assume leadeohip
• Soon, the oainees are motivated to resolve the uncertainty
• Then, they try to form some hierarchy. Some try assume leadership role which may noi
he liked by other matrices
• Then, key stared realizing Lai what they desire to do and realize the alternative ways of
dealing NR the situation

2. Derelopment of new ralites - With the trainer‘s suppon, triinees begln toe ainine their
inierpersonal hehavior and giving each other feedback. The reasoning of tire feedbacks are
discussed which mofivates trainees to experiment with range of new behaviori.and values. This
process constitutes the second step in the change process of the devdopmeiit Dfthese values.

3. Refreezing the new ones - This step dëpends upon how mucli oppominity tlie traineei get to
practice their new behaviors and values at thêir work place.
 Wages andSalary Adminstration
‘Compensation’ in other terms is also called as ‘employee remuneration,’ which an
employee receives in return for his or her contribution to the organisation. It
occupies an important place in the professional working life of an employee.
Employee's standard of living, status in the society, motivation, loyalty and
productivity toa large extent also depends upon theremuneration employee
receives from theorganisation he/she is working in. From thepoint of employer
too, employee remuneration is significant because it contributes positively to the
cost of production as majority of industrial disputes happen due tothis vital
factor. With employee compensation emerging as being an extremely important
issue for every company, over the years, it has becomea complicated issue.
Further, compensation administration isa crucial matter on account of internal
equity, justice and from external front, effecting the economy and society asa
whole. The term compensation management usually refers to ‘wage and salary
administration,’ which is essentially an application of systematic approach tothe
issue of ensuring that the employees arepaid ina logical, equitable and fair
manner. The terms wage andsalary are used interchangeably in the
business world.

Objects of Employee Compensation

Some ofthefactors that form part of reasons behind giving employee
compensation include:
• Attracting capable employees tothe organisation.
• Motivating the employees towards superior performance.
• Retaining services of employees over an extended period of time.

Factors Affecting Compensation

Compensation is determined by the following factors:
1. Employment market ie., supply and demand forthejob
2. Role of labour unions
3. Employer's ability to pay
4. Cost of living in the vicinity
5. Policies of the government
6. Wage legislations

Compensation and Equity

Compensation affects the behaviour of people. Employing organisations desire
for two things:
1. Attract and keep deserving personnel in the organisation.
2. Motivate them toachieve higher level of compensation.

Equity is one of the major issue, which comes across in payment of

compensation to employees. It is concerned with one's view towards justice felt
as per the theory of natural law.
Equity is affected by two factors:
1. It isa ratio of compensation to one's inputs in terms of effort, training,
education, endurance put in during adverse working conditions.
2. It isa ratio of compensation with perceived ratios of significant, other people
with whom direct contact is made.

Equity can be seen as existent, whena person perceives that the ratio of outputs
are equivalent to inputs with respect of self and in relation to others.

Pay Fixation and Establishing Pay Rates

The fixation of pay and establishing of pay rates is done througha process by
considering external, internal and equity through five phased steps. These are:
1. Conducting of wage orsalary survey
2. Determining the relative worth of each job
3. Group similar jobs into pay grades
4. Price each pay grade by using wage curves
5. Fix fine tune pay rates

Components ofCompensation
A crucial question always arises that, what constitutes compensation.
Compensation is determined by assessing both internal and external business
environment.A general compensation structure usually consists of the following
components:

External Environment
Internal Environment
Compensation

Financial

Direct. The Env

Direct Financial Compensation

Direct financial compensation refers to monetary benefits, which areoffered and
paid to employees in return of their services to the organisation. These include
basic pay, dearness allowance (DA), house rent allowance (HRA), conveyance,
medical reimbursements, leave travel allowance, special allowances, bonus,
provident fund and gratuity among others. These aregiven ata regular interval of
time.

Indirect Financial Compensation

Indirect financial compensation refers to non-monetary benefits, which are
provided to employees in lieu of the services provided by them tothe
organisation. These can include paid leave, medical aids and assistance,
insurance (for self and family), car/transportation, leave travel assistance,
retirement benefits among others.
Non-Financial Compensation
Non-financial compensation consists of:
1. The job as a whole, comprising of interesting duties, challenging roles and
responsibilities, opportunity for recognition, feeling of advancement and
achievement opportunity.
2. The environment comprising of sound policies, competent supervision,
appropriate status symbol, comfortable working conditions, flexi-time, job
sharing, cafeteria compensation and congenial coworkers.

Principles Governing Wage andSalary Notes Administration

Some oftheprinciples that form basis of wage andsalary administration
parameters include:
• Maintaining equity in the distribution of wages and salaries that form part of an
organisation.
• Maintain competitiveness in wage market, in comparison to other players in the
industry.
• Match employee expectations.
• Reinforce positive employee behaviour and contribution to the organisation.
• Eliminate any discrepancies in wage administration in the organisation.
• Devisea system that is most efficient for the organisation.
• Optimise interest of management and employee.
• Maintain good industrial relations and harmony in regard to compensation.
 COMPETENCY MAPPING

Any underlying characteristic required performinga given task, activity, or role

successfully can be considered as competency. Competency may take the
following
forms:Knowledge,
Attitude,
Skill,
Other characteristics of an individual includes: Motives
Values
Traits
Self Concept etc.

Competencies may be grouped in to various areas. In classic article publisheda

few decades ago in Harvard Business Review, Daniel Katz grouped them under
three areas which were later expanded in to the following four:
I Technical or Functional Competencies (Knowledge, Attitudes, skills etc.
associated with the technology or functional expertise required to perform
the role);
I Managerial (knowledge, attitudes, skills etc. required to plan, organise, mobilise
and utilise various resources);
I Human (knowledge, attitudes and skills required to motivate, utilise and develop
human resources); and
I Conceptual (abilities to visualise the invisible, think at abstract levels and use the
thinking to plan future business).

WHO IDENTIFIES COMPETENCIES?

Competencies can be identified by one of more ofthefollowing category of
people:Experts, HR Specialists, Job analysts, Psychologists, Industrial Engineers
etc. inconsultation with: Line Managers, Current& Past Role holders, Supervising
Seniors,Reporting and Reviewing Officers, Internal Customers, Subordinates of
the roleholders and Other role set members oftherole.

WHAT METHODOLOGY ISUSED?

The following methods areused in combination forcompetency mapping:
Interviews,Group work, Task Forces, Task Analysis workshops, Questionnaire, Use
of Jobdescriptions, Performance Appraisal Formats etc.
Objectives of competency mapping
Competency mapping servesa number ofpurposes.it is done forthefollowing
functions:
1. Gap Analysis
2. Role Claritiy
3. Succession Planning
4. Growth Plans
5. Restructuring
6. Inventory of competencies forfuture planning