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Semester IV Amity University
The text of the Human Resource Management has been written with the basic objective of introducing and familiarizing students with Human Resource managements concepts that help them develop their knowledge base and understand various facets of HRM. This book covers important concepts and information that begins with introducing the subject in the module-1 followed by Module II in which functions of HR Department are elaborated that makes one understand how an employee is selected in an organization by throwing light upon fundamentals of recruitment and selection which also covers areas such as Job Analysis, Job description, Job specification, Recruitment, Selection, Placement and Induction and socialization, Training and Development – Training Process & Methodology – Need and objectives – Training Procedure Methods of Training – Tools and Aids – Evolution of training Programs. Module III , IV and V discuss various functions of Human Resource Department such as Compensation, Maintenance Integration and Audit & Control. This book discusses various contemporary issues of HR department by focusing on Job evaluation, Merit rating, Methods of wage payment, Incentive Compensation – Types, Advantages, perquisites, Wage Policy in India - Minimum Wage, Fair Wage, Living Wage . The Human Resource Management is an ever evolving field and this book alludes various concepts of this field such that students are able to relate to the basics concepts of HRM and get an insight on the role of an HR manager and diverse activities involved in this discipline.
HUMAN RESOURCE MANAGEMENT Course Objective: The Course Aims to introduce the Students to the Fundamentals, Process, Techniques, and Practices of Human Resource Management and Industrial Relations. Course Contents: Module I: Introduction Human resource Management – Introduction and Evolution – Difference between Personnel Management and HRM .Role of HR Manager and structure of HR Department. Duties and responsibilities of HR Manager.
Module II: Functions of HR Department: Procurement And Development Job Analysis, Job description, Job specification, Recruitment, Selection, Placement and Induction and socialisation Training and Development – Training Process & Methodology – Need and objectives – Training Procedure Methods of Training – Tools and Aids – Evolution of training Programs. Job change - Career Planning, promotion, Demotion, Transfer, Separations.
Module III: Compensation
Job evaluation – Merit rating – Methods of wage payment, Incentive Compensation – Types, Advantages, perquisites. Wage Policy in India - Minimum Wage, Fair Wage, Living Wage
computer based employee information system. Addressing Employee Grievances & their redressal.Purpose. Factors.Module IV: Functions of Maintenance And Integration HR Department: Welfare& Fringe benefits Administration. Methods. . determinants. Human Resource Information Systems – Need. Administration of discipline. Safety & Accident Prevention . Module V: Functions of HR Department : Audit And Control Performance Appraisal .
SOCILIZATION AND PLACEMENT CHAPTER 5 TRAINING AND DEVELOPMENT CHAPTER 6 DEVELOPMENT CAREER PLANNING AND CAREER CHAPTER 7 JOB EVALUATION AND COMPENSATION CHAPTER 8 WAGE AND INCENTIVE COMPENSATION SCHEMES CHAPTER 9 EMPLOYEE WELFARE . Title CHAPTER 1 HUMAN RESOURCE MANAGEMENTINTRODUCTION CHAPTER 2 JOB ANALYSIS. JOB DESCRIPTION AND JOB SPECIFICATION CHAPTER 3 RECRUITMENT AND SELECTION CHAPTER 4 INDUCTION. FRINGE BENEFITS AND SAFETY & ACCIDENT PREVENTION CHAPTER 10 ADDRESSING EMPLOYEE GRIEVANCE AND DISCIPLINE CHAPTER 11 PERFORMANCE APPRAISAL CHAPTER 12 HUMAN RESOURCE INFORMATION SYSTEM .Brief Table of Contents Chapter no.
it was felt that hiring employees never cost anything substantial for a firm and it was also quite easy to replace them. Physical resources refer to materials. On the contrary. Objectives and Functions of HRM 3. training and proficiency of the members of the organization. it was felt that the efficient utilization of physical resources was primary for developing organization.0 Introduction Every organization is essentially a combination of physical and human resources. are possible only when a good and creative workforce is present. However. These difference require individual attention in order to achieve the optimum productivity. education. Product innovation and marketing strategy. the effectiveness of an organization lies in the judicious blending of the two resources to achieve optimum competency. The main reasons for this change are due to the understanding that 1. Human resources. The challenge. employers have realized that intellectual capital is critical to business success. opportunities and even disputes of creating and managing organizations arise mostly from people-centered problems. 3. for a long time. This was so because the acquisition of physical resources resulted in a huge outflow of funds and those assets carried a definite value. Structure of HR department 1. They differ physically and psychologically. This made human resource less important for employers. Meaning and evolution of Human Resource Management 2. . But. People are alike and they cannot be treated identically. refer to the knowledge. money and machines pre-arranged by the organization for production or trade. In fact. you will be able to understand: 1. which are crucial for market survival and growth in a competitive environment. Difference between HR and Personnel Management 4. on the other hand. All organizational resources are important for achieving the objectives of an organization.Chapter-1 – Introduction to Human Resource Management After reading this chapter. skills. in the past decade. 2.
select. HRM involves the applications of management functions and principles. developing their skills. The functions and principles are applied to acquisitioning. recreation. it is useful to point out the essentials which must find their place in any definition. and remunerating the employees in the organization. The following three definitions collectively cover all the five core points: 1. …. They are people. They are applicable to non-business organizations too. The core points of HRM are: 1. and the like. their quality contributes to the ability of the organization and the employees to achieve their objective. Since every organization is made of people. HRM is concerned with the people‘s dimension in the organizations. Effectiveness of an organization must result in betterment of the services to the customers in the form of high-quality products supplied at reasonable cost. 3. 2. developing and maintaining. acquiring their services. We quote three definitions on HRM. Is concerned with the people dimensions in management. 2. It is the people who staff and manage organizations. train and develop members for an organization. HRM functions are not confined to business establishments only. motivating them to higher levels performance and ensuring that they continue to maintain their commitment to the organization are essential to achieving the organizational objectives.1. …a series of integrated decisions that form the employment relationship. But before quoting the definitions. health care. 5. This is true. machineries or inventories. such as education. Decisions on different aspects of employees must be consistent with other human resource decisions. Decisions relating to employees must be integrated. 4.2 MEANING AND DEFINITION Human Resource Management (HRM) is a management function that managers recruit. Decisions made must influence the effectiveness of the organization. . Organizations are not mere bricks. mortar.
integration. compensation. 3. Many people continue to refer to the discipline by its order. Coming to evolution of HRM as a subject. more traditional titles. engaged during the 1970s. The government then took an active interest in the operation of public and private sector enterprises and provided systematic procedures for regulating employeremployee relationships. and the emergence of trade unions. During the 1960s. 1. The aftermath of the Second World War and the country‘s political independence witnessed increased awareness and exceptions of workers.3 EVOLUTION OF HRM HRM. organizational. … management is the planning. Kautilya‘s Arthashastra states that there existed a sound base for systematic management of resources during as early as the 4th century BC. functions and activities designed and carried out in order to maximize both employee as well as organizational effectiveness. or social action. this was the period when state intervention to protect the interests of workers felt necessary because of the difficult conditions which followed the First World War. Experts of HRM in our country have tried to chronicle the growth of the subject only since the 1920s. development. Thus. The trend is changing. human resources in organizations received the management‘s attention much earlier. 1948.regardless of the type of organization – government. health. HRM refers to a set of programs. such as personnel management or personnel administration. The term now days used in industry circles is HRM. Elsewhere. business. education. organizing. the . ‗minimum wages rate‘ and ‗incentive wages plan‘ were included in Babylonian Code of Hammurai. maintenance and separation of human resources to the end that individual. directing and controlling of the procurement . The Factories Act. recreation. it may be stated that concern for the welfare of workers in the management of business enterprises has been in existence since ages. The Royal Commission (1931) recommended the appointments of labour-welfare officers to deal with the selection of workers and to settle their grievances. made appointments of welfare officers compulsory in industrial establishments employing 500 or more workers each. and social objectives are accomplished. a relatively new term. As early as in 1800 BC itself.
HRM challenges and HRD.5 HRM Objective and Function HRM Objective Supporting Functions 1. Union Management Relations . the emphasis shifted to human values and productivity through people. It shifted from a concern for welfare to a focus on efficiency. employee and executive remuneration. performance appraisal and job evaluation. the massive thrust given to the heavy industry in the context of planned economic development. Below table shows the evolution of HRM. Societal Objectives 1.4 SCOPE OF HRM The scope of HRM is indeed vast. with labour welfare. safety and health. In the 1980s. training and development. industrial relations (IR) and the like. professionals began to talk about new technologies. In 1990s. For sake of convenience. 1. In the 1990s. motivation and communication. orientation and placement. job analysis and design. Thus. particularly since the Second Five Year Plan and the accelerated growth of public sector in the national economy resulted in a shift in focus towards professionalization of management. a shift in professional values was discernible. welfare. Simultaneously. Reflecting this trend.personnel function began to expand the welfare aspects. Specifically. we can categorize all these functions into four objectives: 1. the activities included are – HR planning. the American Society for Personnel Administration (ASPA) was renamed as the Society for Human Resources Management (SHRM). the subject HRM has grown in to a matured profession. All major activities in the working of a worker – from the time of his or her entry into an organization until he or she leaves – come under the preview of HRM. beginning in 1920s. recruitment and selection. IR and personnel administration integrating into the emerging profession called personnel management (PM). Legal compliance 2. Benefits 3.
we have two terms. namely. Compensation 5. It is emerging as a distinct philosophy of management aiming at policies that promote mutuality – mutual goals. Training and development 5. there is the problem of semantics in HRM. Training and development 2. Between these two terms is a basic difference. The belief is that policies of mutuality will elicit commitment which.6 THE SEMANTICS As in any discipline. HRM represents the latest term in the evolution of the subject. HRM cannot be treated in isolation. changed its name to the society for human resource management (SHRM). Though a distinct philosophy. Appraisal 3. the expression is gradually replacing the hackneyed term ‗personnel management‘. . Further. First. employees and the society. HRM differs from PM both in scope and orientation. Assessment 3. Placement 7. Since then. Assessment 1. the largest professional association in this field of management.2. Placement 3. Personal Objectives 1. and it is useful as to what it is. Placement 4. HRM views people as an important source or asset to be used for the benefit of organization. personnel management (PM) and HRM. It is being treated into the overall strategic management of business. The American society for personnel administration (ASPA). Employee Relations 3. mutual respect. will yield both better economic performance and greater human resource development (HRM). Organizational Objectives 1. too. mutual rewards and mutual responsibilities. Human Resource Planning 2. Functional Objectives 2. Selection 4. in turn. Appraisal 6. Assessment 1. Appraisal 4. The year 1990 was a turning point in this evolution.
is often depicted as philosophical. In lay terms however. HR is more concerned with the management of a workforce. and at the same time. between HR and Personnel. ―Human Resource Management is just the continuing process of personnel management – it is not different. Human Resources is always represented to a broader extent than Personnel management.7. it is generally described as reactive. i. thus. Personnel management encompasses more administrative disciplines of payroll issues. on the other hand. The tasks that are common within Personnel management include the traditional. embodies and elaborates tasks of Personnel management. Whenever a distinction is made between Human Resources and Personnel management. routine duties.” 1. but will still acknowledge the unmistakable similarities. Human resources. On the other hand. Human Resources.1 HR Management vs Personnel Management While digging for the difference between Human Resources Management and Personnel Management.7 HRM AND PERSONNEL MANAGEMENT The difference between HRM and PM is a subject of discussion amongst HRM experts. While some strongly affirm that there is no difference between the two. as this is one of the key resources that drive the day-to-day operations of a company. In his words. only responding to demands as they arise. One of HR‘s primary goals is to provide a suitable environment for employees to fully utilize their skills. it is said. when acknowledged. According to Lowry. there‘s a general tendency to use the terms interchangeably. others will recognize the variance. depending on which sphere of experts you question.e. It is. employment law compliance and all other related tasks. generally considered proactive. therefore. They do not hold identical views about similarities and dissimilarities between HRM and PM. hence its success. There‘s an ongoing development of . The difference. and work at maximum efficiency levels. involve continuous innovation and strategizing to manage a company‘s workforce more efficiently.1. ―PM and HRM are the successive stages of the same concept without any differences in the concept. creates and develops teams of employees for the advantage of the company. you are most likely going to get very divergent views.
compensation and performance management are common to both HRM and PM. while HR tasks are generally proactive. Prominence of Line Authority HRM. While performance management is always considered to be influenced by the organizations. Personnel management is more concerned with payroll and similar tasks. Identical Core Elements Techniques like selection. Personnel Management duties are solely the domain of the personnel department. and continuous. bonuses. Personnel Management typically endeavors to reward and motivate employees with salaries.2 Similarities between HRM and PM The basic elements common to HRM and PM strategy: Business Strategy Both form the basis for the evolution of HR and PM strategy. compensation and a standard paid annual leave in order to derive employee satisfaction. . Personnel tasks are creative. the primary motivators are seen as job creativity. functions and skill assessments all aimed at improving the company‘s workforce. development. work groups and efficient strategies to meet challenges. Personnel Management is considered independent from organizational influence. Matching People Choosing the right people for the right job and developing them to achieve their maximum level of competence remain the priority of both HRM and PM. with regard to HR. while HR is concerned with the overall management of a company‘s workforce. motivation and rewards. 1. traning. For HR. most of the company‘s senior level employees (managers) are somehow involved. while HR is dependent on input from some employees. However. similar to PM. like senior management.7. To summarize. In terms of performance.policies. recognizes that the primary responsibility for managing people stays with line managers. HR is generally considers as an integral part of the organizational functions. and key goal may be to engage the managers in the skills development processes needed to accomplish personnel related duties.
Fortunately. irrespective of the size of the organization. personnel departments were called ‗health and happiness‘ departments. Status of the HR Department in the total organizational structure depends on whether a unit is small or large. .Emphasis on Communication and Participation HRM and PM provide equal importance to the communication process and workers‘ participation in decision making. Figure shows a structure of this type. Personnel. In fact. vacation schedules and retirement parties. In Fact. In most of the small organizations. They are (i) place of the HR Department in the overall set-up and (ii) Composition of the HR department itself. things have changed for the better and the status of the personnel department has improved enormously over the years. Services of outsiders who specialize in maintaining accounts and records relating to provident fund. were seen as a necessary but unimportant part of the organization. The people assigned to deal with personnel issues were often individuals who were past their prime. pension and other statutory requirements are retained for free. Earlier. Alternatively. 1. as an activity. Individuals in the personnel department were perceived as those responsible for planning company picnics. there may not be any personnel managers at all. a low places employee may be entrusted with the task of attending to these functions. there is no separate department to co-ordinate the activities relating to personnel. The personnel department was seems as a place where the lesser productive employees could be places with minimal damage to the organization‘s ongoing operations.8 ORGANISATION OF HR DEPARTMENT Two issues become relevant in a discussion on organization of an HR Department. it was this arrangement which was followed in the past.
HRM in a small-scale unit A large scale unit will have a manager/director heading the HR department. Figure given below shows this structure. whereas the broad policies. it may be stated that it depends on the scale of operations and attitude of the top management towards its personnel. matters concerning executives and the like are handled by the central department. Where the company has multiple plans located in different parts of the country. ITI and L&T. HRM in large scale unit Coming to the composition of the HR Department.Owner/Manager Production Manager Sales Manager Office Manager Accountant Personnel Assistant Fig. His or her status will be equal to that of any executive. This arrangement holds good when the company has a single unit. The department will grow in size and importance when new demands are places on it by the top management. Routine activities relating to each plant are handled by the HR/personnel department attached to the work. under who are Managers – Personnel Manager-Administrative. Manager-HRD and ManagerIndustrial Relations. However. there may be a centralized HR/personnel department at the mail or registered office and each plant will have separate HR/personnel departments. a typical HR department is headed by a Director. This is the case with conglomerates as BHEL. Chairman and Managing Director Director Production Director Finance Director Personnel/HRM Director Marketing Director R&D Fig. .
2. they are likely to exert implied authority. This is because line manager know the human resource manager has top management‘s ear in areas like testing and affirmative action.Owner/Manager Manager Personnel Manager Administration Manager HRD Manager IR Human Resource Planning PR Appraisal Hiring Canteen Traning and Development Grivance Handling Medical Compensation Welfare Transport Legal 1. While they generally can‘t wield line authority outside.9 DUTIES OF HUMAN RESOURCE MANAGERS Basically Human resource manager caries out three distinct functions: 1. a duty often referred to as functional authority (or functional control). he or she exerts line authority within the HR department. In other words. Here he or she acts as the ―right arm of the top executive‖ to ensure that line manager are implementing the firm‘s human . A line function: The human resource manager directs the activities of the people in his or her own departments and in related services areas (like the plant cafeteria). A coordinative function: Human resource manager also coordinate personnel activities.
Staff (assist and advise) functions: Assisting and advising line managers is the heart of the human resource manager‘s job. 3. and so on). a) b) c) d) Human Resource Management is primarily concerned with Sales Dimensions of people External environment Cost discipline 2.10 Quiz Complete all the review questions listed here to test your understanding of the topics and concepts in this chapter 1. He or she advises the CEO to better understand the personnel aspects of the company‘s strategic options.resource policies and practices (for example. vacation. 1. promoting. Human Resource Management aims to maximize employees as well as organizational (a) Effectiveness (b) Economy (c) Efficiency (d) Performativity 3. It administers the various benefit programs (health and accident insurance. evaluating. HR assists in hiring. and firing employees. retirement. Demand for human resources and management is created by a) Expansion of industry b) Shortage of labor c) Abundance of capital d) Consumer preferences 4. training. counseling. adhering to its sexual harassment policies). rewarding. Human Resource Management function does not involve a) Recruitment b) Selection .
i. The term ____________ refers to ―the total knowledge. The functions of Human resource management can be classified into two broad categories.oriented organization primary concern centers around a) Coordination b) Communication c) Human Resources d) Discipline 7. Which of the given statement reflect the Relationship between HRM & Management? a) Both are same b) Management is one aspect of HRM c) HRM is one aspect of Management d) No relationship exists 9. Quality. attitudes and beliefs of the individuals involved‖. creative abilities .c) Cost control d) Training 5. Which one of the following becomes a creative factor in production? a) Land b) Capital c) Consumers d) Human Resources 6. skills. a) Human resource b) Human resource management c) Human resource planning‘ d) Human relations 8. Employment functions iv. Identify them. Operative functions a) Only i and iii b) Only i and iv . Planning functions iii. talents and aptitudes of an organization‘s workforce as well as the values. Managerial functions ii.
b) Helping the organization deal with its employees in different stages of employment.c) Only ii and iii d) Only iii and iv 10.The human resource management functions aim at a) Ensuring that the human resources possess adequate capital. d) None of the above. equipment and material to perform the job successfully. c) Improving an organization‘s creditworthiness among financial institutions. . tool.
R. Operations involved in doing the job .J Harvey The process of job analysis is essentially one of the data collection and then analyzing the data. Job analysis has applications in almost all the HR activities of an organization. it is capable of producing results with great practical relevance for human resource management. skills. In reality.1 JOB ANALYSIS Job Analysis is an essential prerequisite for the effective management of the human resource of an organization. and other characteristics needed to perform the job‖ . abilities. Meaning. Job identification 2. skills. Job Specification and its components 2.JOB SPECIFICATION ANALYSIS. JOB DESCRIPTION AND JOB Upon Completion of this chapter. and delineating the knowledge. As a process. the job analysis process involves ascertaining what people do and understanding why and how they do it. It actually specifies the tasks involved and the factors that influence the performance of the job. ― Job Analysis involves gathering dataabout observable job behaviors. degress of risk etc. Job analysis is detailed and systematic study of jobs to know the nature and characteristics of people to be employed for each job. uses and techniques of Job Analysis 2. It is about gathering relevant information about a job. It provides the analyst with basic data pertaining to specific jobs in terms of duties. This data may be classified as follows: 1. responsibilities. knowledge. Meaning and Content of Job Description 3. you will be able to understand: 1.CHAPTER-2. Nature of the job 3.
The employer use job analysis information to support several human resource management activities.1Uses of Job Analysis The purpose of Job Analysis is to establish and document the 'job relatedness' of employment procedures. education. help managers decide what sot of people to recruit and hire. and outcomes It identifies the personal qualifications necessary to perform the job and the conditions under which work is performed It reports the job as it exists at the time of analysis.4. What job analysis is: It is a systematic method for gathering information It focuses on work behaviors. tasks.1. This information relating to a job which is thus classified . Personal attributes required to do the job e. This information in the form of job description and job specifications. 6. The requirements of a job are known as Job Description and the qualities demaned from the job holder are termed as Job Specification. attitudes.g. Compensation . Recruitment and Selection Job analysis provides information about what the job entails and what human characteristics are required to perform these activities. Materials and equipments to be used in doing the job 5. not as it was in the past nor as it exists in another organization What job analysis is not: It is not an analysis of thought processes. physical strength and mental capabilities etc. would suggest that some information relates to the job and some concerns the the individual doing the job. if examined carefully. or aptitudes It is not a time and motion study It is not an analysis of an individual position 2. traing. traits. Relation with other jobs.
terminations. the purpose of the job analysis. Legal Requirements The job description is a vital document for an organization in legally and morally justifying its hiring practices. However the characteristics of the job. Managers can use job analysis to find out what these duties and performance standards are.that the job requires. It can also suggest the safety requirements for the job. Doing so requires knowledge of the job‘s duties and standards.2Techniques of Data Collection in Job Analysis No matter what the methodology adopted for data collection in job analysis. Training The job description lists the job‘s specific duties and requisite skills. and the desired quality of information are the factors that usually influence the decisions involving the selection of techniques for data collection.Job analysis information is indispensible for estimating the value of each job and its appropriate compensation. the . and so on –all factors you can access through job analysis. the focus should be gathering information about the tasks associated with the job and desired human behavior at work.and therefore the training. Data collection for job analysis is usually done at one or more levels. promotion policies. and grievance redressal procedures. Compensation usually depends on the job‘s required skill education level. degree of responsibility. the purpose of the job. These levels are: (i) individual (ii) group. disciplinary actions.1. In fact. Further. The need for the safety training and safety apparatus can also be ascertained with the help of job analysis. Safety and Health Job analysis can provide exact information about the nature and type of work conditions essential for an accident-free work environment. it is a legal necessity for an organization to keep a job description statement for each position in the organization 2. Performance Appraisal A performance appraisal compares each employee‘s actual performance with his or her performance standards. (iii) organizational and (iv) community. safety hazards.
Dairy Maintenance Method In this method employee is asked to keep a record of all the activities performed by him as apart of the job analysis process. Critical incidents are considered as snapshots in the regular course of the job. The major advantage of questionnaire is that it is the easiest and more efficient method to collect information from a large number of employees within a short period. The aim of this method is to gather relevant and behavior centered description of the job. He record the various tasks performed by the employee as a part of the job. The different methods of data collection are: Questionnaire Method Having employees fill out questionnaires to describe their job related duties and responsibilities is a popular way to obtain job analysis information. the physical activities involved in the job. Observation Method In this method. the job analyst asks the employee questions about t=various dimensions of the job. the methods of data collection. Critical Incident Method A critical incident is a significant event that takes place in the job environment and forces the employee to respond in the form of performance or behavior. Diary maintenance will enable the . While preparing the questions for interview the analyst must ensure that the questions are uncomplicated and realistic in nature. This method is ideal for gathering first-hand information relating to working conditions. the job analyst closely observes the performance of the employee on the job. and the manner of data analysis. Different types of questionnaire are structured questionnaire. and so on. structured checklist method. open ended questionnaire etc.decision involving the selection of a specific technique is usually influenced by the factors such as the type of data to be collected. Interview Method In this method. He then contacts the employee‘s supervisors to get further information and also to verify the correctness of the information collected from the employee. He should record the information in chronological order. the source from which the data will be collected.
Duties to be performed: Each task performed should be written out and estimate made of the percentage of the time that is developed to the performance of each task. 2. By location we mean the name of the department where the job under consideration exists. As the title indicated. 4. performance bonuses. definite and suggestive of the nature of the job. 2. It should also include information about how employees may be eligible for additional compensation (i. Salary Range: List starting salary. mid-range. Job Title: It is desirable that the job title should be short. .employee tom keep track of all the activities. and high (maximum) salary for the position. Job Summary: A short paragraph succinctly summarizing the tasks performed by the employee is helpful for the subsequent convenient identification of the job. The contents of job description have been discussed below: 1. This is the most important phase of the job description and should be carefully prepared. It identifies the nature of the job and its position in the organization. annual raises.) 5. sales commissions. The preparation of Job description is necessary before a vacancy is advertized. 3. how it is to be done and why it is to be done..e. It aims at simplifying and standardizing the HR activities of an organization. etc.2 Job Description Job description is an organized factual statement of job contents in the form of duties and responsibilities of specific job. Job Location: It is necessary to give the location of the job. This method ensures continuous and better employee involvement in the job analysis process. the documents are descriptive in nature and constitute a record of job facts in an organized way. Job description document discloses what is to be done.
while other jobs requie less supervision. 2. qualification. Work Experience A job specification prescribes the work experience requirements for the job holder. Important components of job specification are listed below: 1. particularly unskilled jobs. Finally. 7. The qualifications may include education. hazards and other characteristics of the physical surroundings within the working area should be described to help in subsequent interpretation of job evaluation. Machines. training. The employee characteristics required for job may include physical. . 9. tools and materials: The tools. skills and other background requirements for a job holder. 2. equipments and materials used in the performance of the job should also be included in the job description. mental. It indicates the nature and the complexity of the job. Education and training A job specification states whether the jobs requires school-or college. Working environment: The working conditions. because people manning these positions are more committed to the achievement of organization goals. It mentions the technical or professional qualification requirements of the job holder. machines. Nature of supervision must be given in the job description. experience.level education.3 Job specification Job specification sets out the education. And sometimes also the minimum experiences for effective performances. social and behavior characteristics of job holders. Relation to other jobs: Clear cut relation of the job under consideration with other jobs in the organization will help to understand the nature of the job well 8. which require intensive supervision. Nature of supervision: There are certain jobs. it specifies the minimum training requirements the job holder must have completed.6. personal attributes and competencies a job holder requires top perform her or his job satisfactorily.
a job specification states the types of skills necessary for the satisfactory performances of the job. Skills and Competencies.4 QUIZ: Complete all the review questions listed here to test your understanding of the topics and concepts in this chapter 1.3. It indicates the nature of skills required like computer skills. 5. 2. and statistical skills. Physical Strength and Stamina If the job involves physical activities like lifting or moving heavy objects. Which of the following is not the technique of data collection in job analysis a) Questionnaire Method b) Observation Method c) Ranking method . technical skills. A written statement of main duties and responsibilities which a particular job entails is called – a) Job Analysis b) Job Specification c) Job description d) Job Evaluation 2. 4. Which of the following is not the component of Job Specificationa) Skills and competences b) Job Location c) Work Experience d) Education and Training 3. the job specification also mentions the physical requirements of the job holder. the stress management ability of the candidate should be mentioned. Stress-Coping Ability When the nature of the job requires a lot of stress endurance and involves constant work pressure in the form of deadlines or night shifts. communication skills. Under this component head.
____________ is defined as a portrayal of the tasks. duties and functions of a job.d) Interview Method 4. compensation management and Performance appraisal. Identify the end results of a job analysis that form the basis for recruitment and selection. a) Job Description and Job Specification b) Job design and Job review c) Job description and job review d) Job design and Job specification 5. ____________ is a complete list of competencies and qualifications required to match the job descriptions a) Job specification b) Job design c) Job analysis d) Job review 8. Job analysis is the recording of all activities involved in a job and the skill and knowledge requirements of the performance of the job. What is it also known as? a) Job review or Job design b) Job review or Job Classification c) Job specification or Job description d) Job classification or Job specification 6. a) Job specification b) Job Design c) Job analysis d) Job description 7. Job Analysis benefits Human Resource Planning. recruitment and selection. Which of the following methods are generally used to collect and compile information on ‗Critical incidents‘ as part of job analysis using the critical incident technique? i) Technical Conference ii) Observation iii) Interviews iv) Questionnaires . responsibilities.
a) Job rotation b) Job enlargement c) Job sharing d) Job enrichment .a) b) c) d) (i) and (ii) (ii) and ( iii) (iii) and (iv) (i) and (iv) 9._____________ involves increasing the length and hence the operating time of each cycle of work for the job holder. Which one of the following is not a behavioral specification in a job specification? a) Ability to make judgments b) Ability to undertake research c) Ability to interpret data d) Ability to be authoritative 10. It is a modern management technique in which different and continuous small cycles are integrated into one single cycle of operation.
recruited). Once the required number and kind of human resources are determined. Selection Process 3. Methods of Recruitment 4.e. These two are not one and the same. you will be able to understand: 1. Technically speaking.1.CHAPTER-3 RECRUITMENT AND SELECTION Upon Completion of this chapter. Meaning of Recruitment and Selection 2. Without positive and creative contributions from people. Recruitment is only one of the steps in the entire employment process. The success or failure of an organization is largely dependent on the caliber of the people working therein. the function of recruitment precedes the selection function and it includes only finding. All this process is generally known as recruitment. qualifications and experience. These are not the same either.. organizations cannot progress and prosper. they have to keep the present as well as the future requirements of the organization in mind. Some others use the term recruitment for selection. Recruitment is distinct from Employment and Selection. they need to recruit people with requisite skills. whereas the selection is the process of finding out the most suitable candidate to the job out of the candidates attracted (i. Some people use the term ―Recruitment‖ for employment.Formal definition of recruitment would give clear cut idea about the function of recruitment. therefore. While doing so.1DEFINITIONS Recruitment is defined as.1 RECRUITMENT The human resources are the most important assets of an organization. ―a process to discover the sources of manpower to meet the requirements of the staffing schedule and to employ effective measures . 3. Importance of Recruitment and Selection 3. developing the sources of prospective employees and attracting them to apply for jobs in an organization. the management has to find the places where the required human resources are/will be available and also find the means of attracting them towards the organization before selecting suitable candidates for jobs. In order to achieve the goals or the activities of an organization.
‖ Recruitment is a ‗linking function‘-joining together those with jobs to fill and those seeking jobs. The purpose is to:Determine the present and future requirement of the organization in conjunction with it personnel.‖ Edwin B. once recruited and selected. Begin identifying and preparing potential job applicant who will be appropriate candidates. A well-planned and well-managed recruiting effort will result in high-quality applicants. Flippo defined recruitment as ―the process of searching for prospective employees and stimulating them to apply for jobs in the organization. Increase the pool of job candidate at minimum cost. whereas. Help reduce the probably that job applicants. a haphazard and piecemeal effort will result in mediocre ones. It is a ‗joining process‘ in that it tries to bring together job seekers and employer with a view to encourage the former to apply for a job with the latter. It is through recruitment that many individuals will come to know a company. Help increases the success rate of the selection process by reducing the number of visibly overqualified job applicants. High-quality employees cannot be selected when better candidates do not know of job openings.for attracting that manpower in adequate numbers to facilitate effective selection of an efficient workforce. The recruitment . 3.2 PURPOSES AND IMPORTANCE The general purpose of recruitment is to provide a pool of potentially qualified job candidates. Increases organizational and individual effectiveness in the short term and long term. Meet the organization‘s legal and social obligations regarding the composition of it workforce.planning and job analysis activities. Recruitment represents the first contact that a company makes with potential employees. will leave the organization only after the short period of time. and eventually decide whether they wish to work for it. are not interested in working for the company and do not apply.1. Evaluate the effectiveness of various recruiting techniques and sources of all type of job applicants.
Some organizations like commercial banks resort to centralized recruitment while some organizations like the Indian Railway resort to decentralized recruitment practices.process should inform qualified individuals about employment opportunities. create a positive image of the company.4 CENTRALISED V/s DECENTRALISED RECRUITMENT Recruitment practices vary from one organization to another. Personnel department at the central office performs all the functions of recruitment in case of centralised recruitment and personnel departments at unit level/zonal .1. 3.3FACTORS AFFECTING RECRUITMENT The following are the 2 important factors affecting Recruitment:A. provide enough information about the jobs so that applicants can make comparisons with their qualifications and interests.1. INTERNAL FACTORS Recruiting policy Temporary and part-time employees Recruitment of local citizens Engagement of the company in HRP Company‘s size Cost of recruitment Company‘s growth and expansion 2) EXTERNAL FACTORS Supply and Demand factors Unemployment Rate Labour-market conditions Political and legal considerations Social factors Economic factors Technological factors 3. and generate enthusiasm among the best candidates so that they will apply for the vacant positions.
control and feedback and various functions/processes of recruitment. It can ensure broad uniformity among human resources of various units/zones in respect of education. The units would enjoy freedom in finding out. . social factors. Units can recruit candidates as and when they are required without any delay. knowledge. It enables the line managers of various units and zones to concentrate on their operational activities by relieving them from the recruiting functions. The unit gets most suitable candidates as it is well aware of the requirements of the job regarding culture. family background aspects. skill. favouritism. promotional and transfer procedure. developing the sources. MERITS OF DECENTRALISED RECRUITMENT The unit concerned concentrates only on those sources/places wherein normally gets the suitable candidates. abuse of powers. traditional. etc. MERITS OF CENTRALISED RECRUITMENT Average cost of recruitment per candidate/unit should be relatively less due to economies of scale. It ensures the most effective and suitable placement to candidates. etc. It enables centralised training programmes which further brings uniformity and minimizes average cost of staff. The unit would relatively enjoy advantage about the availability of information. bias. It would facilitate interchangeability of staff among various units/zones. It would generally be above malpractices. talent. etc.level perform all the functions of recruitment concerning to the jobs of the respective unit or zone. in selecting and employing the techniques to stimulate the candidates. It enables the organization to have centralised selection procedure. etc. As such the cost of recruitment would be relatively less. The unit would enjoy better familiarity and control over the employees it recruits rather than on employees selected by the central recruitment agency. local factors. It would have more expertise available to it.
Both have their own merits and demerits. They include the possibility of inbreeding. Whenever any vacancy arises. retired employees.5 SOURCES OF RECRUITMENT The sources of recruitment may be broadly divided into two categories: internal sources and external sources. promoting B. A. dependents of deceased employees may also constitute the internal sources. Employee can develop good prospects for their families and friends by acquainting them with the company.Both the systems of recruitment would suffer from their own demerits. Let‘s examine these. PRESENT EMPLOYEES Promotions and transfer from among the present employee can be good sources of recruitment. and even encouraging them to apply. They from cliques of their own. There are some potential negative factors associated with employee referrals. demand unacceptable privileges and often threaten to quit if demand are not met. the management has to weigh both the merits and demerits of each system before making a final decision about centralizing or decentralizing the recruitment. EMPLOYEE REFERRALS This can be good sources of internal recruitment. They carry with them the cultural practices of the previous firm. transferred. furnishing cards of introduction. someone from within the organization is upgraded. .1. Promotion to higher positions has several advantages are:It is good public relations It build morale It encourages competent individuals It improve the probability of a good selection When carefully planned. 3. Hence. INTERNAL SOURCES Persons who are already working in an organization constitute the ‗internal sources‘. Retrenched employees. promoted or even demoted. manifesting in groups of people quitting one firm and joining another.
relatives and existing employees. EXTERNAL SOURCES External sources lie outside an organization. (d) Candidates referred by unions. (e) Candidates forwarded by search firms and contractors. (b) Jobs aspirants registered with employment exchanges. PROFESSIONAL OR TRADE ASSOCIATIONS Many associations provide placement service for their member.skilled jobs. (f) Candidates responding to the advertisements. those who have previously applied for job can be contacted by mail. issued by the organization. Some retired employee may be willing to come back to work on apart time basis or may recommend someone who would be interested in working for the company. Here the organization can have the services of : (a) Employees working in other organizations. A. B. (c) Students from reputed educational institutions. An advantage with the sources is that the performance of these people is already known D. some professional opening can be filled by applicants to previous jobs. . ADVERTISEMENT These constitute a popular method of seeking recruits as many recruiters prefer advertisement because of their wide reach. Further many associations publish or sponsor trade journals or magazines for their member. FORMER EMPLOYEES Former employee is also an internal source of applicants. These services may consist of compiling job seeker list and providing access to member during regional or national conventions. These publications often carry classified advertisement from employer interested in recruiting their members. and (g) Unsolicited applications/ walk-ins.C. Although walk –ins are likely to be more suitable for filling unskilled and semi. PREVIOUS APPLICANTS Although not truly an internal source. a quick and inexpensive way to fill an unexpected opening. friends.
CONSULTANTS .A number of factor influence the response rate to advertisement. WALK.collar. In fact. Thus employment exchanges act as a link between the employers and the prospective employees. ` G. university. and the degree to which specific recruitments included in the advertisement. From employees view point. recruiters are bond to recruit a given number of candidates from these institutes every year. H.INS The most common and least expensive approach for candidate is direct application in which job seeker submit unsolicited application letter or resumes Direct applications. These offices are particularly useful in recruiting blue.INS. can also provide a pool of potential employee to meet future need. The Indian institute of management and the Indian institute of technology are on the top on list of avenues for recruiters. white. labour market conditions. WRITE. CAMPUS RECRUITMENT Collage. and technical workers F. There are three important variables –identification of the organization.collar. The Act applies to all industrial establishments having 25 workers or more each. E. The Act requires the entire industrial establishment to notify the vacancies before they are filled. EMPLOYMENT EXCHANGES Employment exchanges have been set up all over the country in the deference to the provision of the employment exchange Act. The major functions of the exchange are to increases the pool of the possible applicants and to do preliminary screening. are preferable methods of recruitment as they are free from the hassles associated with other method of recruitment.INS AND TALK. in some companies. research laboratories. particularly the institutes. 1959. walk. sports field and institute are fertile ground for recruiters.INS.
head hunter. UNSOLICITES APPLICATNS/WALK-INS Companies generally receive unsolicited applications from job seekers at various points of time. annalistic consultancy Bureau. I. recruiting through word-of-mouth publicity are still in use – despite the many possibilities for their misuse – in the small scale sector in India. CONTRACTORS Contractors are used to recruit casual workers. difficulties experienced in maintaining permanent workers are avoided. RADIO AND TELEVISION Radio and television are used but sparingly. by government department only. the number of such applications depends on economic conditions. GATE HIRINGS AND CONTRACTORS Gate hiring (where job seekers. to this extent. aims management consultants and the search house are some among the numbers recruiting agencies. J. Such applications are generally kept in a data bank and whenever a suitable vacancy arises. One important problem with this . present themselves at the factory gate and offer their services on a daily basis). hiring through contractors.Ferguson associates. Companies in the private sector are hesitant to use the media because the high costs and also because they fear that such advertising will makes the companies look desperate and damage their conservative image. generally blue collar employees. L. batliboi and company. and that too. The names of the workers are not entered in the company record and. the image of the company and the job seeker‘s perception of the types of jobs that might be available etc. K. the company would intimate the candidates to apply through a formal channel. human recourse consultants.
Outsourcing firms develop their human resource pool by employing people for them and make available personnel to various companies as per their needs.e. better than the current employer of the candidate.6 RECENT TRENDS IN RECRUITMENT OUTSOURCING The outsourcing firms help the organization by the initial screening of the candidates according to the needs of the organization and creating a suitable pool of talent for the final selection by the organization. . 3. E-RECRUITMENT Many big organizations use Internet as a source of recruitment. the organization might be a competitor in the industry. posting the position with the job description and the job specification on the job portal and also searching for the suitable resumes posted on the site corresponding to the opening in the organization.recruitment that an organization can use is – o Job portals – i.1. E. either they are already employed in other organizations or are not simply interested in the position.Recruitment is the use of technology to assist the recruitment process The two kinds of e. Poaching means employing a competent and experienced person already working with another reputed company in the same or different industry. POACHING/RAIDING ―Buying talent‖ (rather than developing it) is the latest mantra being followed by the organizations today. A company can attract talent from another firm by offering attractive pay packages and other terms and conditions.method is that job seekers generally apply to number of organizations and when they are actually required by the organizations.
. 2) Inbreeding: It discourages entry for talented people. The candidate can choose a right vacancy where 1) Limited Choice: The organization is forced to select candidates from a limited pool.o Creating a complete online recruitment/application section in the companies own website 3. It may have to sacrifice quality and settle down for less qualified candidates.8 MERITS AND DEMERITS OF ‘INTERNAL RECRUITMENT’ OR ‘RECRUITING PEOPLE FROM ‘WITHIN’ Merits Demerits 1) Economical: The cost of recruiting internal candidates is minimal. 2) Suitable: The organization can pick the right candidates having the requisite skills.1. which also saves huge cost for the company. management and non-management colleges across the globe. and makes it easier for the hiring managers to target candidates with niche skills or for roles based in alien geographies. This primarily includes much of senior-level hiring. at the same time ensuring that the talent pool remains intact. Employee referrals: HCL finds this to be a ―reliable channel‖ to reach out to its potential employees.1. 3. Campus hiring: Many of the business unit heads and senior people at HCL have been picked from the campuses of some of the best engineering.7 RECRUITMENT STRATEGIES OF SOME COMPANIES HCL Technologies Internal recruitment: The IT major relies heavily on this model. No expenses are incurred on advertising. Social networking sites: At least 5-7% of its total recruiting is done through websites such as LinkedIn.
higher level positions in an organization. 3) Reliable: The organization has the knowledge about suitability of a candidate for a position. Expenses: Hiring costs could go up substantially. Tapping multifarious sources of recruitment is not an easy task either.9 Merits and Demerits of External sources of Recruitment Merits Demerits Wide Choice: The organization has the freedom to select candidates from a large pool.1. 3. They do offers regular promotional not work hard and prove their avenues for employees. ‗Known devils are better than unknown angels!‘ 3) Inefficiency: Promotions based on length of service rather than 4) Satisfying: A policy of merit. Existing employees may fail to behave in innovative ways and inject necessary dynamism to enterprise activities. Persons with requisite qualifications could be picked up. They will work with loyalty commitment and enthusiasm. may prove to be a blessing preferring people from within for inefficient candidate. available outside an organization. As years roll by. motivates them to work hard and earn promotions. It worth. 4) Bone of contention: Recruitment from within may lead to infighting among employees aspiring for limited.their talents can be fully utilized. the race for premium positions may end up in a bitter race. Infection of fresh blood: People Time consuming: It takes time to .
The organization must be able to distinguish the applicants who are most likely to perform well as employees from the others who are less suitable. Uncertainty: There is no guarantee that the organization ultimately will be able to hire the services of suitable candidates. new ideas could find meaningful expression. etc. advertise.2 SELECTION-MEANING AND DEFINITION Once the applicant pool is prepared. De-motivating: Existing employees who have put in considerable service may resist the process of filling up vacancies from outside. the next step for the HR department is to implement the predetermined selection process in order to select the best candidate for the job. forces then to work with less enthusiasm and motivation. but it becomes all the more difficult when the organization has to screen candidates to fill vacancies that are critical to the organization. Selecting the most suitable candidate for a job is never an easy task for an organization. Such a competitive atmosphere would help an employee to work to the best of his abilities. screen. to test and test and to select suitable employees. 3. Motivational force: It helps in motivating internal employees to work hard and compete with external candidates while seeking career growth. This is . Where suitable ones are not available.with special skills and knowledge could be hired to stir up the existing employees and pave the way for innovative ways of working. the process has to be repeated. The feeling that their services have not been recognized by the organization. a competitive atmosphere would compel people to give out their best and earn rewards. Long term benefits: Talented people could join the ranks. The aim of this process is to finally end with candidates best suited for the vacant jobs. It may end up hiring someone who does not fit and who may not be able to adjust in the new setup.
because any faulty decision in the selection of employees can have a far reaching impact on the performance and future of the organization.
According to O‘Donnell ―Selection is the process of choosing from among the candidates, from within the organization or from the outside, the most suitable person for the current position or for the future position.‘‘ We may conclude that selection is a systematic process of identifying suitable candidates for the jobs available in the organization from the available applicant pool. 3.2.1 PURPOSE OF SELECTION The basic purpose of selection process is to choose right type of candidates to man various positions in the organization. In order to achieve this purpose, a well – organized selection procedure involves many steps and at each step, unsuitable candidates are rejected. DISTINCTIVE FEATURES OF SELECTION 1. Selection means employment of workers or establishing a Contractual relationship between the employer and the worker. 2. Selection is a negative process because it involves rejection of unsuitable candidates. 3. Selection aims at eliminating unsuitable candidates and ensuring most competent people for the vacant job. 4. Selection is a complex process under which each candidate is required to cross a number of hurdles before getting the offer for a job. 3.2.2 SELECTION PROCESS Selection is a long process, commencing from the preliminary interview of the applicants and ending with the contract of employment. The procedure of selection will vary from organization to organization and even from department to department within the same organization according to the kinds of jobs to be filled. Thus every organization will design a selection procedure that suits its requirements. However the main steps could be incorporated are as under: 1. Preliminary interview
2. 3. 4. 5. 6. 7. 8.
Receiving applications or application blanks Screening of application Employment tests Interview Reference checking Medical examination Final Selection The successive stages in the selection process are discussed below:
1.Preliminary Interview The selection programme begins with preliminary interview or screening. The preliminary interview is generally does the job of eliminating the totally unsuitable candidates. The preliminary interview enables the HR specialists to eliminate unqualified job seekers based on the information supplied in their application forms. 2. Receiving Applications or Application Blanks Whenever there is a vacancy, it is advertised or enquires are made from the suitable sources, and applications are received from the candidates. Standard application forms (application blanks) may be drawn up for different jobs supplied to the candidate on requests. The application forms usually involve items such as name, address, age, marital status and dependents, schooling, experience and reference. There may be several other items depending upon the specific requirements of the organization and the job. 3.Screening of Applications After the applications are received, they are screened by a screening committee and a list is prepared of the candidates to be interviewed. Applicants may be called for interview on some specific criteria like sex, desired age group, experience and qualifications. The number of candidates to be called for interview is normally five to seven times the number of posts to be filled up. The screened applications are then reviewed by the Personnel Manager and interview letters are dispatched by registered post or under certificate of post. 4.Employment Tests Individual differ in almost all aspects one can think of .They differ with respect to physical characteristics, capacity, level of mental ability, their
likes and dislikes and also with respect to personality traits. The pattern of physical, mental and personal variables gives rise to thousand and one combinations and the particular pattern makes the individual suitable for several classes of activities, jobs or field of work. Matching of individual‘s physical, mental and temperamental pattern with the requirements of jobs or filed of training is a difficult task. So before deciding upon the job or jobs suitable for a particular individual, one should know the level of his ability and the knowledge. This will require the use of employment tests which are listed below: a. Intelligence tests: The aim of intelligence test is to measure the general intellectual abilities of a person. The uniqueness of this test is that it measures several abilities of the candidate and derive the intelligence score. Aptitude tests: An aptitude test measures the latent talents of a person that may be crucial to performing the job successfully. This test is normally given to those applicants who have no previous experience in that file Interest tests: A persons mental and physical abilities are not sufficient to achieve a desirable job performance. The aim of the interest test is to know the interest test is to know the interest, aptitude and preference of a person towards a job offered. Personality tests: Personality refers to the sum of the characteristics of a person which reflect on his /her response to a particular situation. The characteristics may include among other things, introversion, interpersonal skills, motivation, stability, self belief, courage, attitude and temperament.
Employment tests are widely used for judging the applicants suitability for the job. 5.EMPLOYMENT INTERVIEW Employment tests provide a lot of valuable information about the candidate. Interview is a formal, in-depth conversation conducted to evaluate the applicant‘s acceptability. An interview can be defined as ―a selection procedure designed to predict future job performance on the basis of applicants‘ oral response to oral
inquiries‖ or, ―as a purposeful exchange of ideas, the answering of questions and communication between two or more persons‖ The main purposes of an employment interview are: a) To find out the suitability of the candidate. b) To seek more information about the candidate c) To give him an accurate picture of the job with details of terms and conditions and some idea of organizations policies. Employment interview is considered to be an excellent selection device. TYPES OF INTERVIEW (METHODS) a)THE STRUCTURED INTERVIEW: The structured interview has also been called patterned or standardized interview. The interviewer predetermines the questions to be asked. He merely follows the same template to ask the interviewee a series of questions with title or no deviation. This method ensures uniformity in the interview process and facilitates easy comparisons among the candidates. b) THE UNSTRUCTURED INTERVIEW In this type of interview, the interviewer does not pre-plan the questions to be asked. In fact, he decides on the questions as the interview proceeds. The purpose of this method is to allow a free discussion on any topic as it emerges. Interviewers generally avoid asking the same or similar questions. c) IN DEPTH INTERVIEW The purpose of these interviews is to discuss the information concerning the candidate in detail. This method normally covers the subjects of mutual interest like specialization, motivation, qualification and career plan of the candidate on one hand, and the firm‘s offer on the nature of job, pay, perquisites, career opportunities on the other. d) THE GROUP INTERVIEW The group interview method has been devised to assess leadership. Usually a topic is given discussion to a leaderless group of applicants.
f) PANEL INTERVIEW In this method. Prior to final selection. education. 6. adaptability to new situations. The marks awarded by all the interviewers are finally consolidated into a panel score. the applicant is interviewed by more than one interviewer. 3. 7. e) STRESS INTERVIEW The purpose of this interview is to put the candidate in an uncomfortable situation to see his/her ability to handle stress. financial condition etc. the prospective employer normally makes an investigation or the reference supplied by the applicant and undertakes more or less through search into the candidates past employment. social awareness and speaking ability. poise. The interviewers are generally drawn from different fields. MEDICAL EXAMINATION The pre –employment physical examination or medical test of a candidate is an important step in the selection process. Such a letter generally contains a date by which appointee must report on duty. FINAL SELECTION AND APPOINTMENT LETTER The next step in the selection process is job offer to those applicants who have crossed all the previous hurdles. 8. Job offer is made through a letter of appointment.This method is provides opportunities to rate various qualities as initiative. CHECKING REFRENCES A reference is potentially an important source of information about a candidate‘s ability and personality if he holds a responsible position in some organization or has been the boss or employer of the candidate.3QUIZ Complete all the review questions listed here to test your understanding of the topics and concepts in this chapter . personal reputation. A panel of two or more interviewers is formed to interview the candidate.
The policy of filling job vacancies with candidates from within the company instead of searching for new talent from outside has certain disadvantages. Some of popular methods are advertisements. selection and induction is increased d) It might have a negative effect on the morale of the employees. In today‘s rapidly changing business environment. Edwin B. employee referrals. 5. There are various methods of recruiting from external sources. Flippo defined the process of recruitment as ___________ a) The process of seeking and attracting a pool of people from which qualified candidates for job vacancies can be chosen b) The process of searching for prospective employees and stimulating them to apply for jobs in the organization c) The process of choosing the most suitable candidates from the available candidates d) The process of inspiring people to apply for the jobs in the organization and choosing the most suitable candidate from the available candidates 3. organizations have to respond quickly to requirements for people. private placement agencies.1. campus recruitments. One of the disadvantages of this approach is that____________ a) The return on investment on the workforce decreases for the company b) The organization might miss out on talent that is available in the market c) The cost of recruitment. etc. Which is the step that starts off the process of acquiring and retaining employees for an organization? a) Selection b) Induction c) Recruitment d) Appointment 2. An effective recruitment program aims at __________ a) Aiding the recruiter by making a wide choice of candidates available b) Attracting the best people for the job c) Optimizing the cost and time involved in recruitment d) All of the above 4. employment exchanges. Which of the following recruitment sources is likely to have the widest reach? a) Recruitment agencies .
__________ is considered to be a vital step in the employment process. where the organization attempts to identify ‗the right candidate for the right position‘. a) Personality tests b) Aptitude tests c) Intelligence tests d) Interest tests . They are generally inventories of the likes and dislikes of candidates in relation to work._____________ help in assessing an individual‘s genuine liking for a job. ‗Unsolicited application‘ are _________ a) Job applications that are not received by the company b) Job applications that are referred by existing employees c) Job applications that are not in response to any advertisement or announcement of vacancy d) Job applications that are rejected by the company 8.b) Campus recruitment c) Advertisements d) Employment exchanges 6. hobbies and recreational activities. Which of the following is determining the selection of media when advertising for candidates to fill a job vacancy? a) Cost of advertising in the media b) The target audience for the advertisement c) The reach of the advertisement desired d) All of the above 7. Which one of the following is the most important criteria for determining the success or failure of the recruitment program? a) The cost involved b) The number of candidate hired c) The number of successful placements d) The number of applicants for the job 9. a) Recruitment b) Selection c) Placement d) Induction 10. occupations.
objectivity.11. optimism. These characteristics are expressed in traits like self-confidence. conformity. dominance or submission and impulsiveness or stability. a) Personality tests b) Aptitude tests c) Interest tests d) Situational tests . decisiveness. and other characteristics.__________ help in assessing an individual‘s value system. the main advantage of structures interviews is that ____________ a) It does not require advance planning b) There is no scope of subjectivity c) The interaction between the interviewer and interviewee is formal d) It gives more flexibility to the interviewer 12. tact. emotions. In the selection process. judgment. maturity.
the job and department details. Meaning of Induction(Orientation) 2. the expectation of the management. happy and at ease with the new environment. Formally Welcoming Employees .1 PURPOSE OF EMPLOYEE OREINTATION/INDUCTION The changing characteristics of the labour market. 4. It is thus necessary for any organization to have meticulously planned and well executed orientation program to educate the employees about the various aspects of organizations. We shall now see the important purposes served by employee orientation. Purpose and Types of Induction 3. the availability of simple and appropriate technology for storing and presenting information. employees are usually briefed about the history of the organization. SOCILIZATION AND PLACEMENT Upon Completion of this chapter. its culture. Significance of Placement 4. and the product or services information. values and attitude.CHAPTER-4 INDUCTION. The newly joining employees get the first impression of the organization through the orientation programmes.1 Orientation (Induction) Employee orientation or induction is a crucial stage in the hiring process of an organization. you will be able to understand: 1. the increasing demand for the skilled labour. Concept of Socialization 4. and the employee‘s explicit demand for information about the organization have all forced organization to pay serious attention to employee orientation.1. In orientation programmes. Orientation programs are useful in making the new employee feel assured. There is also growing realization among organization that the process of orientation can sustain and improve the new employees‘ initial enthusiasm.
Many organizations view orientation programmes as an occasion for the management to welcome new employees formally and procedurally Overcoming Initial Uneasiness and Hesitation The new employees suffer from initial anxiety about the organization. employees are normally left to learn everything on their own. The organization. Socializing Employees . department. Assessing Employees Although the selection process has already evaluated the training requirement requirements of the employees the orientation provides one more opportunity to do so. and individual career plans. Exchanging Information Orientation provides a platform for the organization to transfer knowledge about the job. Acclimatizing Employees Orientation programmes enable the organization to teach the employees the basics of the job and the satisfy measures to be adopted. it helps in promoting team spirit among the peers. and acquaint them with the other facilities available in the premises. and this might push up their learning cost to the organization in the form of resource wastage and work disturbances. too. their background. gets to know about the employees. This could also increase the HR cost associated with recruitment and selection. Controlling the HR Cost In the absence of orientation programmes. organization and people to the new employees. Orientation helps in quickly overcoming the initial nervousness and hesitation. Developing the Team Spirit When the orientation programme is conducted for a group of new employees.
For instance attendance and discipline is provided . Traditional and Modern Orientation Based on its purposes and content. In this method. some general information about the organization is provided to the employees. For instance. Job-Specification Orientation The purpose of this orientation is to inform the employees about the various aspects of the job and other things related to it.1. General-Idea Orientation In this type. orientation may also be classified into traditional orientation and modern orientation. the organization views it as the beginning of a continuous process to convert an employee into a precious asset. the details of the duties. standards and beliefs among the employees so that they integrate themselves not only with the formal organization but also with the informal groups. In the case of modern orientation.2 Types of Orientation Based on the number and nature of the new employees and its policy towards orientation. and specific safety and other measures required in the performance of the job are provided. an organization may decide on a specific method of orientation. which would conduct it for all new entrants. responsibilities and accountability associated with the job. orientation is viewed as a ritual and one-time exercise by the organization. it may be called traditional orientation. When the organizations employ the general and oft-repeated materials to orient employees.The organization may entrust the orientation pragramme to the HR department.Socialization refers to inculcating suitable values. . 4. irrespective of their departments. The important types of orientation pragramme.
It should never overburden the new employees with information.1. In some organizations. The following measures might help the organization achieve the desired effectiveness. Thus. Selecting Appropriate Methodology. It should not attempt to include everything in the programme content. Framing Clear-cut Objectives The organization should frame the objectives of its orientation in unambiguous terms. however. The participations‘ status and information requirements should be considered for determining the objectives are capable of providing a clear direction to the whole orientation programme. Techniques and Programme Content The organization should also be judicious in designing the content (curriculum) of the orientation programme. it is essential to ensure that the programme content flows from the objectives and also work towards their attainment. .3 An Effective Orientation Programme Since the orientation programme is crucial to the management from the employee motivation and retention perspective. every effort must be made to make it effective and successful. The responsibility for orientation is assigned to the HR department normally. the training departments are assigned the task of conducting orientation programmes.4. Its success lies in making the new employees feel assured and positive about their new organization and the job. It should decide exactly what the employee should know initially and what information can wait for future presentations. Determining the Roles of Departments and Personnel The organization should determine clearly the department and persons responsible for conducting the orientation programme. Assessing the New Employees’ Information Requirements Accurately An effective orientation programme must be able to fully address the first day concerns and general information requirements of the new employees.
Creating a Positive Environment for New Employees The organization should strive to create a positive environment for its new employees. values . The definitions highlight the different interpretations of socialization ―Socialization is the ongoing process of instilling in all employees the prevailing attitudes .arrangements must be made to receive these employees and guide them to their predetermined places. and the patterns of behavior that are expected by the organization and its departments‖- . Socialization is a much longer process than orientation. firms like PROCTER and GAMBLE and IBM have achieved excellence in the socialization process. Inspire of the comparatively long period of socialization required for achieving the results desired. For instance. some organization have developed an excellent socialization process for improving the performance and loyalty of the employees. In simpler terms. The whole orientation programme must be designed in such a way that the participants completely enjoy their participation in it. it is the process by which the new employees learn the organizational culture. standards . Evaluation techniques should measure the extent of learning achieved through orientation programmes. Even before the beginning of the orientation sessions . 4. Providing Continuous Review and Effective Feedback As employee orientation is a continuous process in an organization. it is necessary to develop appropriate instruments to evaluate the effectiveness of such programmes.2 SOCIALISATION Socialization is the process of introducing or integrating the new employees into the organizational culture. Facilitating the employees to share the organizational values and culture is the core of socialization programmes.
This is done by facilitating the employees to learn the relevant values. commitment. In the first phase. 3. new employees do their best to personalize their relationship with the organization. Organizational socialization In this stage. the organization undertakes the necessary efforts to gradually expose the new employees to the prevailing organizational culture. The organizational socialization process usually comprises three stages these are: 1.2.1 The Socialization Process The process of socialization of employees takes place in two phases. Since it is difficult to measure attitude. Organization may employ a formal or an informal socialization process or both to educate the employees about the organizational culture. attitude and other behaviors already acquired by the new employees before their entry into the organization. Anticipatory socialization This is the first stage in the socialization process but is normally completed even before the actual entry of the employees into the organization . behavior. 2. performance and other measurable . Socialization outcomes The final stage of the socialization process is the achieving of the objectives of the socialization efforts. the organization may keep its objectives in terms of productivity. This is done through orientation and training programmes. These are socialization by organization and personalization by individuals. motivation and values. the organization makes efforts for the socialization of the new employees. as the abstract terms. When the pre-acquired values of the employee and the organizational culture are similar. In the second phase. the socialization process becomes simple as it can easily help the employees assimilate the organizational culture and value.GARY DESSLER 4.It refers to the values. The organization attempts to find out these behaviors of the employees through the selection process. beliefs and attitude.
1 CHALLENGES IN PLACEMENTS Though placement appears to be a simple function for an organization. organizations choose not only the appropriate jobs but also the appropriate supervisors for placing the employees On many occasions.3.3 PLACEMENT Placement is the process of finding an appropriate fit between the people and the positions in an organization. It is actually the determination of the job which an accepted candidate is to be assigned to. Similarly. Once the employees complete the stipulated orientation the next step is his placement in the job. The process of job placement is involves reassigning the jobs among the existing employees. Based on the employees‘ work performance and behaviour in the orientation programme. placement is simple and easy.terms. This information is then used to choose the appropriate placement for the employees. organization utilizes the orientation programmed for identifying the behaviour. knowledge and attitude of the new employees. and his assignment to that job. especially in the case of managerial placements. the socialization process is normally viewed as effective. CULTURAL AND BEHAVIOURAL INCOMPATIBILITY: . 4. When the outcomes are positive. When the organization chooses an exact number of candidates for the specific vacancies available in the organization. 4. organization also use long and extensive training programmes for identifying the aptitude of the employees before placing them in suitable positions. Placement is usually the last stage in the recruitment and selection process of an organization. it is not so in reality. Quite a few issues can cause the placement efforts to fail in the organization.
In contrast placements become difficult when the employees exhibit stiffness. etc. the skills of socializations and leadership should also be taken into considerations to determine the match between the job and the employees. This process of adaptation is known as ___________. co-workers and boss. work activities. They do not ensure the fitness of the whole man for the job but his skill alone. it can facilitate the process of placement. When an employee joins an organization he has to adapt to the new work culture. LEVEL OF ADAPTABILITY: When the employees exhibit a high degree of flexibility and openness.Sometimes. 4. This is because the culture differs within the organization and also from department to department NATURE OF JOB: Nature of job can also cause problems in placements. a) Employment b) Recruitment c) Placement d) Induction .4 QUIZ Complete all the review questions listed here to test your understanding of the topics and concepts in this chapter 1. the organizations do not consider the behavioral compatibility between the superiors and the freshly joining subordinates. Therefore cultural compatibility should also be considered in placement. The organization should consider many factors before placing employee in these jobs. For instance.
These include a) Co-workers b) Supervisors c) Clients d) All of the above 5. Different parties need to be involved in the process of socialization. Which of the following is not true about the process of socialization? a) Socialization has an influence on employee performance b) Proper implementation of the socialization process ensures organizational stability c) Socialization is the sole responsibility the HR department and the immediate supervisor d) Socialization ensures that a new employee fits well into the organization 4. The process of induction is also known as a) Introduction b) Orientation c) Adaptation d) Probation 3. if it is to proceed smoothly.2. Which of the following is not a part of the socialization process in an organization? a) Training employee in soft skills b) Participating in trade fairs c) Providing technical training d) Providing on-the-job training .
Training typically comprises predetermined programmes to achieve the desired performance efficiency at various levels-individual. essentially. its people. The Scope and Importance of Training. Management Development 5. The training Process 5. The Nature and Importance of Training and Development 2. It plays a vital role in enhancing the efficiency. Rapid technological developments and the resultant changes in the production process have compelled the management of various companies to treat training as a continuous process of the organization. Assessing Training Needs 4. a value-addition activity undertaken by an organization to enrich the value of its core assets. namely. you will be able to understand: 1.1 INTRODUCTION Training is. group and organizational. Methods of Training 6. The success of any training programme lies in recognizing the training needs within the organization and then designing and . It is a learning process that helps employees acquire new knowledge and the skills required to perform their present jobs efficiently. In simple terms. training is all about making a difference between where the worker stands at present and where he will be after some point of time. Training is usually a short-term skill development exercise meant for nonmanagerial employees either to learn a job or to overcome their deficiency in the performance of the present job. productivity and performance of the employees.CHAPTER-5 TRAINING AND DEVELOPMENT After reading of this chapter. 3.
the improvement of skills is no longer optional for the organization but a matter of compulsion. skills and employee attitudes. job related behavior. which in turn. skills. 5. ―Training is the creation of an environment where employees may acquire or learn specific. we can say that training is the process by which an employee acquires the necessary knowledge and skills to perform the job. Undeniably. namely. facilities optimum utilization of the available human resources. It helps the organization create a smarter force capable of meeting any situation and challenges. Indian organizations have realized the importance of training as a tool to achieve their strategic goals. Leap To sum up.implementing training programme based on those needs in order to carry out a continuous up gradation of knowledge. It is not viewed by the organization as a cot any longer but as an investment on one of its most dynamic assets. abilities and attitudes. Many organizations consider training as a strategic employee retention tool. due to the growth in technology and improved processes. Enlargement of Skills and Competency Training helps in enhancing the technical knowledge and skills of the employees at every level of the organization. employees. In fact. Effective Utilization of the Existing Human Resources Training results in improved performance. We shall now discuss the significance of training in detail. .1 SIGNIFICANCE OF EMPLOYEE TRAINING Today. sustained training efforts by an organization usually lead to the creation of a highly competent and motivated workforce that is all set to take on the challenges of performance and productivity. organizations can think of achieving success in the globalized market only when they can ensure that their employees perform to their fullest potential. It also enables the employees to accomplish the organization goals as well as their personal goals effectively.‖ -Terry L. In fact. knowledge.
and better services to their customers. training helps in the promotion of team spirit and inter-team cooperation among the employees. Obviously. The process of skills acquisition helps not only the organization in achieving its goal but also the employees in ensuring their personal growth. they must enhance their overall performance continuously. It can retain its core workforce competency and skills through continuous and systematic training of its labour force. employees prefer those organizations that expose them to modern technologies and help them upgrade their skills and knowledge. It helps build a good labour-management relationship . Enhancement of Customer Satisfaction Almost everywhere. It is emerging as an important technique to retain people. it enhances the spirit of a group and makes the members work harder to succeed as a group. Enhancing Competitive Advantage One of the important competitive advantages of an organization in a competitive environment is its workforce. In fact. lower costs. organizations are compelled to ensure superior quality. Establishing a Positive Organizational Climate Training enhances the interaction and understanding between the employers and the employees. Enrichment of Team Spirit Generally. The training of employees helps in improving helps in improving upon the quality of work and in controlling costs. Successful organizations recognize that well-structured and significant employee learning programmes connect well with their long-term strategic success. To meet these challenges. Enabling a Learning Culture Training helps in creating a learning culture within the organization. Ensuring Personal Growth Training is an investment in people.
The training needs assessed at group levels are usually referred to as the organizational-need assessment. 5. the employee skills inventory is prepared to identify the likely skills shortage in the organization. loyalty.2 Assessing Training Needs The assessment of training needs is an important job for the HR department. it assists in the development of a healthy working environment. Encouraging Better Health and Safety Measures Training helps in improving the health and safety of the employees. Normally. skills shortage is an indication of the need for training at the organizational level. Thus. Ensuring Organizational Growth and Development Training aids in organizational development since it helps in developing since it helps in developing leadership skills. It facilitates the establishment of effective decision-making and problemsolving processes. The individual employee‘s training needs can be assessed by comparing the actual performance of the employee with the standard performance. The collective feeling of the employees about their organization is called the organizational climate. It is usually done at two levels. It minimizes the problems of industrial accidents and sickness. The deficit in performance will indicate the nature and extent of the need for his/her training . it aids in creating a positive perception and feeling about the organization. training needs are assessed for different groups in the organization. motivation. At the first level.and ensures that the individual‘s goals align well with the organizational goal. communication and other aspects required for successful employees. Skills inventory is an estimation of the kind of skills possessed by the employees while skills shortage is the situation where the required skills are more than the available skills in fact. the training needs of the individual employees are assessed. At the second. Thus. Safety training teaches the employees about the safety measures to be followed and also the best and secure way of performing a job.
absenteeism records and attrition reports to assess the actual performance of the employees. The individual employee may also require training at the time of transfer and/or promotion in order to learn the new job. They may form the basis for determining the training requirements of the job holders. Performance Evaluation Performance evaluation reports help in assessing the training needs at the individual levels. their level of awareness. an organization should involve as many sources as possible and then decide on the best one that can provide reliable information. an organization may review productivity reports. The information about the attitude of workers towards their work environment. performance scores. Advisory Panel An organization may constitute panels comprising the representatives of the management and those of the employees to decide on the training needs. Attitude Survey Attitude survey is a process of gathering information from the employees about the various aspects of the organization. and their views on the relevance of the existing training programmes and future training requirements can be ascertained. The results can then be compared with . The panel has to assess the existing skills requirement before deciding on the number and nature of the training programmes required for a specific period. Job Analysis Job description report and job specification can be examined to decide the skills. The current performance of an employee is an important indicator of his training requirements. To determine the training needs of its employees.programmes. abilities and knowledge required to perform the job effectively. Ability Test Score An organization can give ability tests to its employees to identify their existing levels of skills and abilities. In addition. We shall now discuss each of these sources.
management skills. Let us see these attributes briefly. training is considered. For instance. Knowledge The basic purpose of any training programme is to provide the participants with the requisite knowledge to achieve the goals of the job. motor skills. duration and purpose of the training programmes. Depending upon the nature. learning and reasoning. Training imparts job-related knowledge to the participants and enables them to understand what they must do in their job and how they should do it. knowledge. and analytical acumen. the trainees may acquire attributes like skills. the employees and all others who are important to the business can help in determining the training needs.3 Scope of Training The reach-out of training programmes is far and wide. Feedback The feedback from the customers. Skills Acquisition Skill is defined as an ability to produce solutions in some problem domain. technical skills and perceptual skills. social skills. the employees who quit can provide vital clues to the weakness of the organization in general and its training programmes in particular at the time of exit interview. Similarly.the standard skills requirements to determine the need for and extent of the training programmes. when the organization finds the existing skills and knowledge of the staff inadequate to achieve the strategic goals and objectives. Knowledge is generally developed through the processes of perception. . It is developed progressively by persistent training and other practices. attitudes and ethical values. Employees may require one or more skills like intellectual skills. 5. concepts. mental skills.
The management of human resources often calls for decisions involving ethics. commitment and satisfaction. Organization should supplement those policies with the necessary training on ethical practices. values and tendencies that influence him to behave in one way or the other. A negative attitude may cause suspicion and mistrust in the action of the organization and make the employees resist changes with all their might. motivation. The training process has been described in the given diagram. fair treatment and justice. ensure the adoption of ethical values in every aspect of their dealing with the people. These trainings can help employees understand the presence of ethical codes to settle problems involving ethical dilemmas in a fair and just manner and lastly. Employee training programmes can bring about the desired changes in their attitude and instill in them a sense of cooperation. Continuous training programmes provide the necessary impetus to sharpen the analytical reasoning and problem-solving skills of employees. Attitude Formation Attitude is the mental state of an individual concerning his beliefs. These steps have been briefly explained a follows. The general purpose of any training process is to train employees to be able to look for and respond to changes in a successful way. feelings. training becomes a continuous process. 5.4 Steps in an Employee Training Process Changes in the internal and external situations are inevitable and. thus. develop alternative plans of action. choose the best course of action and implement the selected plan to successfully resolve the problems. Ethical Values Ethics are principles of right and wrong that are accepted by an individual or a social group. . Analytical Reasoning Analytical reasoning refers to the systematic way of thinking to comprehend the problems.
Determination of the Training Needs The first step in a training process is to identify the specific operational skills to be developed for performing a job. to recognize the training needs of the employees.Determine the needs F e e d b a c k Develop the objectives Choose the techniques Identify the Trainer Implement the Programme Evaluate the effectiveness Steps in the Training Process 1. Generally. A methodical approach to identify the real needs must be undertaken. an analysis at one or more of the following three levels is undertaken. a.Organizational Analysis .
corporate goals and plans of the organization are examined carefully and then compared with the existing manpower inventory to determine the training needs. c. the next step is to determine the specific objectives of the training programmes.This focuses on identifying areas in the organization where training is needed. these objectives must be directly related to the assessed training needs and should also focus on satisfying those needs. It also involves the collection of information about the competencies required for effective job performance. downtime reports. Each programme can have its own objectives. Operation Analysis This involves the proper examination of the work to be performed after training. It involves asking pointed questions to find out exactly what job knowledge and skills the person must have in order to perform well. and quality issues along with the performance evaluation and the interview of the employees can offer information for the determination of the training needs. The difference between the actual performance and the standard performance of an individual indicates the training needs. . otherwise it would be difficult to evaluate the effectiveness of the training programmes. The aim is to connect the training needs to the achievement of the organizational goals. 2. At this level. However. It is absolutely essential to have concrete and measurable goals. b. It focuses on the tasks that are required to be performed to accomplish the organizational goals. An examination of the operating problems like customer grievances. the strategic mission and vision. Actually. Development of the Training Objectives Once the training goals have been established. Individual Analysis This focuses on deciding about the individual training needs. individual analysis deals with questions like who should be trained and what should be taught.
the implementation stage is often fraught with a lot of practical difficulties. Unless proper records of the performances of the employees are kept before and after the . Broadly there are two categories. structure. an appropriate training method should be chosen to achieve the desired results. They must be adequately competent. each technique is unique and there are definite differences existing among these techniques about how well each one serves the various objectives. 4. Identifying the Trainer Once the training method has been decided.job training methods. frequent interaction between the trainers and trainees can also be encouraged to ensure their involvement in the training process. the next important step is selecting and training the trainers for the programme. However. This is a critical step because the success of the whole training effort relies greatly upon the competency and ability of the trainers. the comfortableness of the training facilities. Implementing the Training Programme Once the training methods and trainers have been decided. the quality and adequacy of the provided materials. even while doing the actual job. They must also be familiar with the company‘s philosophy. culture and specific purpose of the training programme. some of the prerequisites are the convenience of location. On-the-job training means imparting real-time training at the work spot. For successful implementation. objectives. the next step is the actual implementation of the training programme.3. Though there are several techniques available to train the participants. These are: on-thejob training methods and off-the. knowledge and mature people with effective communication skills. Offthe-job training means training at a place away from the work spot and in formal classrooms. 5. For instance. Similarly. Based on the training needs and goals. and the timing and duration of the programme. Selection of the Training Techniques The next step involves decisions regarding the training techniques to be used in the programme. Another difficulty in the execution of the training programme is keeping appropriate records. training is often viewed as a process to effect change and hence viewed with mistrust and suspicion by the employees.
trainers: Recognize the need for improvement in their training skills Are given suggestions from trainees for improving future training Can determine if training matches workplace needs According to Hamblin. Reactions of trainees to the training experience itself 2. and other resources Employee Performance Organizational productivity Through evaluation. For an effective evaluation. it is imperative that the training efforts be documented to demonstrate that training provides a valuable service. Hence. staff. and to assess the value of the training in the light of that information‖. it would be difficult to determine the net gains of the employees achieved through the programme. Evaluation feedback assists in improving efficiency and effectiveness of: Training content and methods Use of organizational budget. Understandably. Learning evaluation requires the measurement of what trainees have learned as a result of their training . there are five levels at which evaluation can take place: 1.training programme respectively. The absence of such facilities for comparison will make it difficult to evaluate the utility of the training programme for the trainees. an evaluation of these attributes after training will facilitate a meaningful comparison to determine the effectiveness of the training programme. 6. Training evaluation is of vital importance because monitoring the training function and its activities is necessary in order to establish its social and financial benefits and costs. Evaluation of the Training Programme This is the final step in an employee training process. it is essential to pre-assess the attributes to be emphasized in the training programme. It is important to understand the purpose of evaluation before planning it and choosing methods to do it. Hamblin(1974) defines Evaluation as ― any attempt to obtain information (feedback) on the effects of a training programme.
Based on the training goals and need assessments. Organizational unit evaluation attempts to measure the effect of changes in the job behavior of trainees on the functioning of the part of the organization in which they are employed 5. 5. It also presents the organization with wide options to effect personnel changes to achieve the desired productivity and strategic goals. usually employees are placed on different jobs turn by turn where they learn all sorts of jobs of various departments. Following are the on-the-job methods.3. the training should be done according to a structured programme that uses task lists. Ultimate value addition aims to measure how the organization as a whole has benefited from the training in terms of greater profitability. Job Rotation In this method. Job behavior evaluations concerned with measuring the extent to which trained have applied their learning on the job 4. an appropriate method may be chosen. Job rotation aids the employees in comprehending a variety of jobs and in acquiring multi-skills to manage these jobs comfortably. . survival or growth 5. job breakdowns.1 ON-THE-JOB TRAINING METHODS These methods are generally applied on the workplace while employees are actually working.5 Methods of Training A broad range of training methods is available to an organization to deliver training to its employees. The basic idea behind the adoption of this kind of training is to transfer the skills and knowledge from a highly competent and experienced employee to a new one.5. We shall now discuss these training methods in detail. It can either design its own programme or get an externally available package and make modifications in it to suit the purpose and requirements of its training programmes. There are two options available to an organization while deciding on a training programme. and performance standards as a lesson plan. The objective is to furnish a comprehensive awareness about the jobs of different departments. while sustaining the productivity of both. 1. To be successful.
why it has to be done and how it has to be done. gain hands-on experience with the job and first-hand knowledge about the prevailing business practices. These programmes can last for a few months to several years. Several organizations practice this method to impart skills to employees it is commonly used to train people for various crafts jobs like those of an electrician. Apprenticeships Generally fresh graduates are put under the experienced employee to learn the functions of job. a turner. The main motivating factor for the trainees here is the awareness that they are acquiring the exact knowledge needed to perform their jobs. together with brief write-ups about each step. In fact. a fitter. 4.Job Coaching An experienced employee can give a verbal presentation to explain the nittygritty‘s of the job. Internships and Assistantships An intern or an assistant are recruited to execute a specific time bound jobs or projects during their education. becomes the instructor and imparts knowledge to the trainee (called an apprentice) at the work spot. 5. Apprenticeship training is an ―earning while learning‖ arrangement for a required term. For instance. a carpenter.3. In this way. who is usually a highly skilled employee. all the necessary steps in the job. An apprenticeship is a formal agreement between an individual who wants to learn a skill and an employer who needs a skilled worker. are complied sequentially. Under this method. Internship is usually beneficial to both the parties. Job Instruction It may comprise of an instruction or directions to perform a particular task or a function. depending on the nature and complexity of the jobs. it is a unique kind of recruitment-cum-training that calls for positioning a student in a temporary job without any obligation for the company to hire him permanently after training. the job instruction training sheet for each job can be prepared and provided to the trainees. a machinist and a printer. In this method. The best . the interns help the organization do the needed tasks and in turn. Each note would explain what needs to be done in that step. the superior. It may consist of a part of their educational courses. Each step would have a corresponding self-explanatory note. 3. a plumber. It may be in the form of orders or steps to perform a task.
feature of an internship is that it lets the employers try out future prior to making a job offer. Advantages of On-the-Job Training: It is directly in the context of job It is often informal It is most effective because it is learning by experience It is least expensive Trainees are highly motivated It is free from artificial classroom situations Disadvantages of On-the-Job Training: Trainer may not be experienced enough to train It is not systematically organized Poorly conducted programs may create safety hazards
5.5.2 OFF THE JOB TRAININGS It is method in which workers are imparted training at a place away from their usual workplace. These methods can be taught effectively in a step-by-step manner. These are used away from work places while employees are not working like classroom trainings, seminars etc. these methods are ideal for teaching the theoretical aspects of the jobs. They become critical when on-thejob training involves potential risk to the trainees and others. Following are the off-the-job methods:
1. Classroom Lectures It is a verbal lecture presentation by an instructor to a large audience. This method of training uses the trainer‘s oratory skills to provide knowledge and skills to the employees through intensive study materials. It involves programmed instruction material, which is to be learned, is presented in small, sequential steps with self instruction. Communication is primarily one way: from the instructor to the learner. It provides a great deal of information quickly to a large group of trainees.
However this method is least effective for retaining and applying information and the trainees looses attention easily. 2. Audio-Visual It can be done using Films, Televisions, Video, and Presentations etc. The advantage of this method are wide range of realistic examples, quality is control possible. One-way communication, No feedback mechanism and No flexibility for different audience are the disadvantages of this method. 3. Simulation Creating a real life situation for decision-making and understanding the actual job conditions. Trainees participate in a reality-based, interactive activity where they imitate actions required on the job. It is useful for skill development. Following are some of the simulation methods of trainings 1. Case Studies: It is a written description of an actual situation and trainer is supposed to analyze and give his conclusions in writing. The cases are generally based on actual organizational situations. It‘s a story with a practical message. The trainees recommend solutions based on the content provided. It works well with any size group. It is an ideal method to promote decision-making abilities within the constraints of limited data. 2. Role Plays: Here trainees assume the part of the specific personalities in a case study and enact it in front of the audience. Trainees can learn possible results of certain behaviors in a classroom situation. It is more emotional orientation and improves interpersonal relationships. Attitudinal change is another result. These are generally used in MDP. 3. Sensitivity Trainings: This is more from the point of view of behavioral assessment, under different circumstances how an individual will behave himself and towards others. There is no preplanned agenda and it is instant. Advantages of this type training are increased ability to empathize, listening skills, openness, tolerance, and conflict resolution skills and disadvantages include participants may resort to their old habits after the training. It is also time consuming. 4. In- Basket Exercise Training: In this method of training, trainees are given in tray of a manager containing various kinds of mails and correspondence, which requires decision making. Trainees go through each mails and gives his decision. This is good method to
develop analytical thinking and decision making capabilities of of the trainees. 4. Programmed Instructions: Provided in the form of blocks either in book or a teaching machine using questions and Feedbacks without the intervention of trainer. Courses conducted online; flexible timetable; can be done at own pace; requires self-discipline on trainees to achieve training objective. However, clarifying individual doubts can pose problems in this method. 5. Vestibule Training: This method combines the benefits of the classroom with the benefits of on the job training. The classroom is located as close as conditions allowed to the departments for which the employees are being trained. It is furnished with the same machines as used in production. The employees are trained as if on the job, but it did not interfere with the more vital task of production. Transfer of skills and knowledge to the workplace is not required since the classroom is a model of the working environment. Advantages of Off-the-Job Training: Trainers are usually experienced enough to train It is systematically organized Efficiently created programs may add lot of value Disadvantages of Off-the-Job Training: It is not directly in the context of job It is often formal It is not based on experience It is least expensive Trainees may not be highly motivated It is more artificial in nature
―An organization‘s conscious effort to provide its manager (and potential managers) with opportunities to learn ,grow and change, in hopes of producing
over the long term cadre of managers with the skills necessary to function effectively in that organization.‖ (DeSimone et al: 2002) ―Management development is the process by which managers acquire not only skills and competency in their present jobs but also capabilities for future managerial tasks of increasing difficulty and scope.‖ Edwin B. Flippo The management and leadership development process is flexible and continuous, linking an individual‘s development to the goals of the job and the organization. Management development programmes provides the opportunity to develop a broad base of skills and knowledge that can be applied to many jobs in the organization. Management development curriculum is changing. The overarching goal is a comprehensive curriculum for managers to develop the necessary core competencies to become excellent leaders. Expanding management core competencies will enable managers to keep pace with the demands of a changing organization. 5.7OBJECTIVES OF MANAGEMENT DEVELOPMENT The main objectives of management development are : 1. To provide effective managerial resources to the business at all levels now and in the future as well as to provide opportunities for self-development and career growth. 2. To develop a set of personal attributes which are required to understand customer‘s present and future needs 3. To develop a managerial talent necessary for meeting present as well as future organizational manpower needs, especially at top positions 4. To attract and retain best professionals in the organization 5. To enable managers to develop management skills and competencies needed to achieve excellent levels of performance in both present and future jobs 6. To develop intrapreneurship and facilitate transfer of skills and learning to other employees of the organization such as new joinees 5.8 PRINCIPLES OF MANAGEMNT DEVELOPMENT
Discussing what the employee learned in the classes and support integrating new ideas/methods to workplace issues 5. need to provide training to its employees at various stages of their career. committee and task force assignments. cross training. Improving skills and knowledge that can be immediately applied at work 3.The principles of management development are: 1. Increasing motivation and job satisfaction of managerial personnel 4. Creating a network of colleagues for problem solving and support 5. Every organization. 5. skill assessment programmes . Providing opportunities for employees to develop through mentoring . Encouraging growth and career development of employees as per the philosophy of human resource management 2. irrespective of its size or nature of operations. Promoting communication and planning throughout the organization and department networks 5. Modeling and encouraging the desired behaviour that fits well with the organization‘s mission. professional associations. and university extension programs. values.10 Quiz Complete all the review questions listed here to test your understanding of the topics and concepts in this chapter 1. Providing timely behaviour feedback on performance and discussing ways to improve and develop further. 2. Discussing and creating a development plan during the performanceplanning cycle 3.9 STRATEGIES TO SUPPORT MANAGEMENT DEVELOPMENT The following strategies are noteworthy: 1. 6. Endorsing employees attending classes and activities that support developmeny plans and goals. vision. internships. 4. Identify the man objective of training . objectives and culture.
a) Classroom lecture b) Simulation exercise c) Job rotation d) Job instruction training 4. iv. ____________ is a form of off-the-job training. a) Job rotation b) Apprenticeship c) Classroom Lectures d) Vestibule training 3. iii Only ii. iii. iv.i. iv 2. ii. a) b) c) d) Updating employee skills and improving employee performance Preparing for promotion and managing succession Retaining and motivating employees Avoiding managerial obsolescence and creating an effective efficient organization Only i. and policies of the organization. iv Only iii. iii. regulation. ____________ is/are widely used for helping the employees understand the rules. a) Experimental exercise b) Role playing c) Vestibule training d) Apprenticeship 5. where the trainee is exposed to an artificial work situation that closely resembles the actual work situation. ____________is described as a method of human interaction involving realistic behaviour in imaginary situations. procedures. iii. ii. i i. ii. A benefit of the programmed instruction method of off-the-job training is that a) Helps in improving the communicational skills of the trainee b) Helps in improving the people management skills of the trainee c) Promotes continuous interaction between the trainer and the trainee and facilitates learning d) Helps in improving the relationship management skills of the trainee .
and suggests solutions from the perspective of a person who has to tackle the situation in actuality. Interaction with employees of different departments providing enriching experience of various day to day problems iv. a) In-basket b) Incident c) Role Playing d) Case Study 9. Which of the following statements can be considered to be incorrect. iv. iii. iii b) Only ii. identifies the problems and their probable causes. ___________ can be used to identify the development needs of the managers. Reduces monotony of work iii. Increase productivity by promoting competition between departments a) Only i. Which of the following may be considered to be the advantages of job rotation in management development? i. They assess a manager‘s ability to perform a job. with respect to the basic prerequisites for a successful management development program? .. ii. iv c) Only iii. The skills that a management development program aims to develop include: a) Technical and People skills b) Technical and communication skills c) Technical and managerial skills d) Intellectual and managerial skills 7. iii. Stimulates the development of new and creative ideas ii.6. In the ____________ method of management development. The employee analyzes the situation. each employee is given a written account usually of a real-life situation occurring in a certain organization. ii. and identifying the areas requiring development a) Assessment Centers b) Training centers c) HR departments d) Test Centers 8. i d) i. Job rotation plays an important role in developing the skill set of a manager. iv 10.
a) Management development should take place only when a manager feels it is necessary b) Managers must take up the responsibility of developing their subordinates for greater responsibilities c) Management development must match the needs of the organization and the individual d) Managers must be motivated to invest time I their own development and that of their subordinates. using special reward systems .
Career planning and development are concepts which include all those events either happening to or initiated by individuals which affect a person's progress or Promotion.or long-term career objectives.1 CAREER PLANNING-INTRODUCTION Career planning is a subset of career management. Meaning and Importance of Career Planning and Development 2. you will be able to understand: 1. The basic character of career development is futuristic in the sense that its policies and programmers are devoted to tomorrow. Career planning applies the concepts of Strategic planning and Marketing to taking charge of one's professional future. Steps in Career Planning 3. The term career is used to refer to an individual's entire work Life. higher widening and/or changing employment possibilities and acquiring a different and normally higher status.CHAPTER-6 CAREER PLANNING AND CAREER DEVELOPMENT After reading of this chapter. to be the succession of jobs and/or ranks held by a person in a particular organization. better conditions of service or increased satisfaction with the job. Meaning and relevance of Promotion and Demotion 4. An individual's career begins with placement in a job and ends with departure from the organization which may be through retirement resignation or death. Career planning refers to planned and systemized progression of events and development in the field of work or vocation of individuals during the employable periods of their life. The following classification system with minor variations is widely used: a) Development of overall goals and objectives. . Career planning is the process of establishing career objectives and determining appropriate educational and developmental programs to further develop the skills required to achieve short. Meaning and Type of Transfer and Separation 6. It can be defined in a narrow sense.
b) Development of a strategy (a general means to accomplish the selected goals/objectives). competence. b) To ensure that the road to the top is open for all. its internal support system. and d) Systematic evaluation of the progress toward the achievement of the selected goals/objectives to modify the strategy. 6. This has two facets: positively. d) To impart to the employee maximum satisfaction. experience. c) Development of the specific means (policies. e) To strengthen the organization‘s manpower retention programmers based on adequacy of career compensation. the organization must analyze the strength and weaknesses of the existing infrastructure. It seeks to improve the organization‘s ability to attract and retain high talent personnel. in the right place. To fulfill such a broad agenda of objectives. to avoid a "square peg-in-a round-hole" in the organization. leading to a harmonious balance between personal and organizational objectives. negatively. rules. since outstanding employees always are scarce and they usually find considerable degree of competition to secure their services. It assures the adequate availability of qualified personnel in the organization for future openings. procedures and activities) to implement the strategy. Individuals who see that their personal development needs are met tend to be more satisfied with their jobs and the organization.2 IMPORTANCE OF CAREER PLANNING AND DEVELOPMENT: Career planning and development is required and hence has to be designed to fulfill the following basic objectives: a) To secure the right person at the right time. discontinuity and turnover of manpower. Such people may give preference to employers who demonstrate a concern for their employees' future. motivation management. Proper career planning and development would insure against any possible dislocation. to make succession-planning timely and smooth. c) To facilitate effective development of available talent. . consistent with their qualifications. performance as well as individualistic needs and expectations. if necessary.
Remember. examining every opening to turn to his favor. Goal Setting Set your goals according to your academic qualification. Catch Hold of Opportunities Opportunity comes but once. work experience.3 STEPS IN CAREER PLANNING 1. priorities and expectations in life. Once your goal is identified.You must analyze your interests.6. and then switch to another. . aptitudes. desired lifestyle. 5. Plan of Action Recognize those industries and particular companies where you want to get into. then you determine the feasible ways and objectives how to realize it. 4. 3. abilities. try to convert it in every way for suiting your purpose. Decide where you would like to see yourself after five years and in which position. Academic/Career Options Narrow your general occupational direction to a particular one by an informatory decision making process. Make the plan a detailed one so that you can determine for how many years you are going to work in a company in order to achieve maximum success. So. Self Assessment The first and foremost step in career planning is to know and assess yourself. and personal traits and then study the relationship between the career opted for and self. 2. a successful professional is also quite opportunistic in his moves. Analyze the career option by keeping in mind your present educational qualification and what more academic degrees you need to acquire for it. You need to collect information about yourself while deciding about a particular career option. whenever you get any opportunity to prove yourself and get into your desired career.
Promotions. . which are normally accompanies by financial incentives. also fulfill the economic needs of the employees. -The Policy manual. The promotion of an employee to the next level is normally decided on the basis of merit and seniority or both.4 PROMOTIONS Promotion can be defined as the advancement of an employee from one position to another. in addition to fulfilling the social need of attaining increased status in the society. It is certainly a good and effective motivator for employee. Normally a promotion involves the permanent movement of employees to the higher positions in the organization. Advancement in the career of the employee is the essence of the definitions of promotions. and demands more skills. A simple addition of duties to the existing positions or a hike in the financial compensation at the existing position cannot become a promotion automatically. Moving an employee to higher position on a temporary basis without any increase in compensation is usually viewed as promotion.6. A promotion is normally accompanied by an increase in authority. responsibility and compensation. Internal promotion.1 CHARACTERISTICS OF PROMOTION The characteristics of promotion are identified as follows: A promotion normally involves movement of an employee from one position to another within an organization.4. for filling the job vacancies in the organization can increase the loyalty and moral of the employees. Organizations employee promotion as a tool to recognize and reward the merit and sincerity of the employees. The promotion of an employee is an administrative act as the management has every right to decide on the matters pertaining to promotion. University of North Texas 6. Promotion is ―the permanent movement of a staff member from a position in job class to a position in another job class of increased responsibility and complexity of duties and in a higher salary range‖. resulting in his financial benefit. as compared to external hiring.
.2 CRITERIA FOR PROMOTION Promotion is one of the highly sensitive tasks of the HR managers. The length of service in the organization or in the present position becomes the sole criterion in promotion decisions. Seniority-Cum-Merit-based Promotions In this method and organization considers both merit and seniority for determining the promotion of an employee. the length of the service of the employees is considered for promotion. promotions are time bound and also a formality. For instance. Seniority In the case of seniority based promotions. while other factors like competence and commitment are overlooked. an organization may decide to have the proportion of merit and seniority in the ratio of 70 and 30 in order to evaluate and potential candidates. and selection for promotion will be based only on job related criteria. A good promotion decision requires an objective evaluation of the relevant competences of the perspective candidates. The primary purpose of this method is to include the positive features of both the promotion criterion. In such cases.4. the candidate‘s identification. The organization may decide the weights for merit and seniority on the bases of its HR and promotion policies. merit is given an appropriate consideration while the other factor like seniority becomes the insignificant in the promotion decision. In this category of promotion. the job positions are available within the organization are filled with persons who have maximum years of service in the organization. evaluation. We shall now see the general promotion criteria of organization. Depending upon the overall promotion policy. In organizations where seniority is the sole basis. Merit Merit as a basis for promotion means fulfilling the job positions in a organization with the most talented person available within the organization for those positions. the organization must evolve a procedure of determining the promotions of its employees. As such. especially when it involves selection from a pool of prospective candidates. The seniority based system is normally followed in public sector organizations.6.
In sports leagues. the worst-ranked teams in the higher division are relegated to the lower division. misconduct. risk-bearing dynamism. capacity to take on higher responsibilities. The whole system of promotion. 6. if rewards are not commensurate with demonstrated accomplishments. but also those who are senior. owes its rationale to two important factors: a Personnel factors connected with the reward for longevity. generation and availability of such requisite skills and specialized knowledge specific‘ to the relevant tasks and programmers.It is important to note that current competence of individuals cannot alone be the basis for elevation but certain relevant traits are required like growth-potentiality.5 DEMOTION A demotion is a reduction in an employee's rank or job title within the organizational hierarchy of a company. public service department. averagely competent and Adequate and who have rendered long service by growing with the organization. motivation for better performance. or other body. must include not only the very best and brilliant achievers in the organization.5. Indeed. An employee may be demoted for violating the rules of the organization by a behavior such as excessive lateness. the organization is bound to suffer. loyalty and good work.1 REASONS FOR DEMOTION . when teams are transferred between divisions. a vision and a perception for total organizational progress. if the company is facing a financial crisis. for severe violations of the rules. such as embezzlement or sabotage. an employee will typically be fired and the company will file criminal or civil charges. search for job satisfaction and goal of self actualization or fulfillment‘s a Organizational factors connected with accomplishment of its objectives through obtaining of right persons at the right time within its own jurisdiction. A demotion may also lead to the loss of other privileges associated with a more senior rank and/or a reduction in salary or benefits. Minor violations of rules or the first violation of a rule will typically result in a verbal or written warning or a suspension without pay. A move to a position at the same rank or level elsewhere in the organization is called a lateral move or deployment. Within the continuum of disciplinary options available within most organizations. a demotion falls in the middle range of severity. In some cases. urge for recognition. 6. though. At the other extreme. an employee may be demoted as an alternative to being laid off. or negligence. The opposite of a demotion is a promotion. Career planning.
6 TRANSFER A horizontal shifting of employs from one job to another without any job related increase in the pay. an employee is transferred for administrative convenience with or without his concurrence. benefits and status of the employee is called transfer. imposed transfer and requested transfer. an .An employee may be demoted for several reasons including administrative convenience and punishment. Transfers may also be used to see whether an employee is fit for permanent placement in that position as a part of promotion. Following are the important reasons for demotion: Administrative Convenience Due to external developments and/or internal restructuring. Demotion is considered as less severe punishment than dismissal or discharge of employees from the job. namely. an organization may be forced to abolish certain categories of jobs or merge the jobs for administrative purposes. In case of requested transfers. In case of the former. It can broadly be classified into two categories. Voluntary Demotion It is also called demotion on request. Inefficiency Employees can me moved out of the existing position to some lower level for consistence failure to meet the performance goals of the organization. For instance an organization may carry out transfers for better utilization of skills and knowledge of the employees. 6. Employee may request a voluntary demotion when they are not wiling or able to perform the existing duties any longer or shoulder the responsibilities of current positions properly. Disciplinary Action An organization may impose demotion as a punishment for any serious violation of code of conduct. It involves shifting an employee to a lower designation upon his request or concurrence.
Employee may cite health. 6. and compensation packages.6. Training of employees Many organization transfer employee as a toll to train the employee in different jobs of the organization Disciplinary Action As part of disciplinary action. responsibility. We can define transfer as an employee‘s lateral mobility in the organization structure without any significant change in the authority.employee is transferred to another job or place because he has requested the transfer. Employee Request Organizations may order a transfer to fulfill the request of an employee for it. We will now discuss the major purposes of transfer: Optimum utilization of skills Organization may transfer employee through from places where there is underutilizations due to labour surplus to other places within the organization that suffer from skills shortages. family or other personal problems for seeking voluntary transfers. responsibility. They may also seek transfers for job related reasons like difficulties and high level of stress Transfer can be done on the request of employee due to personal reason like family problem or health problem. compensation and social status. employees may be transferred to the least preferred jobs or destination without any change in the job authority. .1 OBJECTIVES OF TRANSFER Transfers can serve several purposes for both the organization and employee. Transfers are often requested by the employee for personal reasons. The lateral movement of employees from the existing job to another with comparable duties responsibilities and pay range is the essence of the definitions of transfer.
Shift Transfer . If the employee can adjust himself in the given job he can be transferred to the job where he can use his skills and abilities accordingly.2 TYPES OF TRANSFER Transfers may take place due to variety of reasons and for that there are different types of transfers: Production Transfer When the transfers are being made for filling the position in such departments having lack of staff.Due to HR policy which states that one employee can work in department or place for specific time period. Departmental vacancies can be filled with transfer of employees from overstaffed department. If an employee is not able to do the work or job assigned effectively he can be transferred to the other job where he can use his skills properly according to his interest and abilities. Transfers are common in the organizations where the work load varies timely. Employees can be transferred to the position or department with the higher priority workload. 6. from the departments having surplus manpower it is called production transfer. Versatility Transfer Such transfers are done to increase the versatility in the employees so that he can work different kind of jobs. This is done by transferring employee to different jobs closely related in same department or process line. It prevents the layoffs form the organization.6.. Remedial Transfer Remedial transfer refers to rectification of wrong selection or placement of employees. It helps employee to develop him and he is equipped for the high responsibility jobs as he is having knowledge of the whole process. Also it is good to adjust existing staff rather than to hire the new one. This is used as a training device.
So.1 Types of Separation Depending upon the reason. if not handled in an efficient manner. 6. can lead to various legal complications. a better position at a better compensation package in a branded company (or better known company) in a same city and country or in a different city or different country. an employee resigns for: 1) Better compensation and benefits 2) Higher position / level 3) Challenging role 4) To move from an unknown or lowly branded company to a highly branded and reputed company (Top 10 or 25 companies in the world etc) 5) For foreign or international assignments Termination Usually. professional growth. In termination.7. Beginning of the relation is called as recruitment process or talent acquisition that passes through selection phase and followed by induction. And the final stage of the relation is the separation. an organization may initiate voluntary or involuntary separation of employees by adopting any one of the mentioned forms: Resignation This is the most common way of separation. Employee leaves his job and employment with his employer to pursue better opportunities.7 SEPARATION Employee Separation is one of the very important and crucial function / process of HR Department. 6. development and etc. This process. Staying together in the relation comprises the various phases such has performance management. they stay together for a while and then they separate. The relation of an employer and employee has a beginning. There .In many multi-shifts jobs such as Call centers employees are transferred from one shift to another due to their personal reasons like health problem or evening college for higher studies or any family problems. career management. this process is perceived negatively by employees. an employer uses his right to terminate the contract of an employment.
He assumes few things and do not really try to face the challenge. on one fine day an employee decides not to go to work. 5. They are low in confidence. They feel that running away from the problem is as good as solving the problem. In case an employee decides to abscond (or run-away).can be many reasons for an employer to terminate the contract of employment but some of the common reasons are: 1) Non-Performance 2) Indiscipline 3) Misconduct 4) Insubordination 5) Theft and etc Absconding This is one of the most unethical. Lastly. 6. If there is a work-pressure and stress and the individual is not able to cope-up with it (as it happens in call-centers. 7. They are cowards to take the problems head-on. when priorities are different. If the intentions of an individual is to commit a crime. They are too weak to face the reality and challenges of life. If he has got some exceptionally good opportunity that requires him to join immediately and he feels that the process of separation in his company is a bit too complicated. 4. 3. BPO and other high-stress industries). If the employee has committed any crime outside the office and after working hours (such as murder or getting involved in terrorist activities or theft or any other civil crime). After stealing the confidential information or documents or database from the company. Employee has asked for leave due to some urgency at his home (or might be he is trying to escape from his work responsibilities) and at the same time his team also needs him in the office and his leaves are not approved. Employees can abscond in either or all of the below mentioned circumstances / situations: 1. In this. Then. it is a personality issue. 2. unexpected and unprofessional way to terminate the contract of an employment. He does not care to hand-over his stuff. . Employees that abscond have different personalities. it becomes very important to understand his motives and intentions.
The age of retirement from government services in India differs from one state to another within the range of 55 to 65 years. and shifting business from one region or country to another Layoff A layoff is similar to retrenchment except that it is a temporary separation of employees from the organization. In which of the following activity the employee is no longer associated with the organization a) Transfer b) Separation c) Promotion d) Demotion . Retrenchment Retrenchment is a kind of involuntary separation which an organization adopts to downsize it labour force. The need for retrenchment may arise due to the closure of unprofitable business operations. Retirement This is most common form of separation of employees from the organization. Depending upon its retirement policy. However private organizations can have their own retirement policies. the employees would be called back once the business fortunes revive and get stabilized. The purpose of retrenchment is to reduce the expenditure of the business and raise the profitability. Since a layoff is a temporary separation. Organizations usually resort to layoffs to overcome the problems of business slowdown and other temporary business interruptions. an organization would initiate the necessary steps to separate the employees upon attaining the specific age. 6. especially during the difficult times of organization. the automation of operations.7 QUIZ Complete all the review questions listed here to test your understanding of the topics and concepts in this chapter 1.
roles or jobs by one person over a relative long time span. Which of the following is not considered as a type of separation a) Resignation b) Termination c) Demotion d) Absconding 4. or from one job to a target position. his employees immediate manager and the employee b) The employee and his/her immediate manager c) A variety of sources both internal and external to the organization d) The employee with some assistance/guidance from his/her immediate manager. It is the process of establishing career objectives and determining appropriate educational and developmental programs to further develop the skills required to achieve short.or long-term career objectives a) Promotion b) Career Planning c) Job Rotation d) Training 3.2. Successful career planning and development requires action froma) The organization. a) Work b) Profession c) Occupation d) Career 6. ____________ can be defined as logical progressions between jobs. 5. a) Need analysis b) Career Counseling c) Career path d) Opportunity analysis . A/An _____________ can be defined as a sequence of positions.
employees at the next lower level are assessed based on their performance and service.better in terms of job responsibility. iii. Which of the following alternatives might result lead to job vacancies in an organization? i. a) Promotion b) Career development c) Transfer d) Vacancy-based promotion 8. ________________ is the horizontal movement of an employee from one job to another job at the same level in the organizational hierarchy. iii. a) Career development b) Self assessment c) Promotion d) Transfer . iv 10. ii. Promotions iii.iii b) i. more prestige or status. In _______________ promotion. Employee turnover ii. and the best performer is promoted to the vacant position. when a vacancy arises for a position. Recruitment iv.7. ii. ii. iv c) i. Demotions and Terminations a) i. a) Seniority based b) Merit based c) Time bound d) Vacancy based 9. iv d) i. Paul Pigors and Charles Myers define __________ as ―advancement of employees to a better job. greater skill and especially increased rate of pay or salary‖.
Early organization theorists were interested in how jobs fit into organizations: they focused on the purpose of the job. It became one of the tools with which managers understood and directed organizations.1 JOB EVALUATION Job evaluation as a management technique was developed around 1900. But this early interest in job evaluation disappeared as the human relations movement focused on other issues. through his interest in improving the efficiency of work. Taylor. you will be able to understand: 1. Merit rating and Job Evaluation 7. Meaning. Job evaluation is the process of determining the worth of one job in relation to that of the other jobs in a company so that a fair and equitable wage and salary system can be established. made studying the job one of his principles of scientific management. characteristics and objectives of Job Evaluation 2. ―Job evaluation may be defined simply as an attempt to determine and compare the demands which the normal performance of particular jobs makes on normal . Job Specification and its components 4. In all cases the idea is to evaluate the job. It was not until the 1960s that psychologists and other behavioral scientists rediscovered jobs as a focus of study in organizations. Job evaluation is the process of systematically determining a relative internal value of a job in an organization. Frederick W. not the person doing it.CHAPTER 7 JOB EVALUATION AND COMPENSATION After reading this chapter. Job Evaluation Process and methods 3.
7. responsibilities and accountability often from the basis for the determination of the relative worth of the job.workers without taking into account of the individual abilities or performance of the workers concerned. the worth of the job in the labour market.2 Objectives of Job Evaluation The following are the objectives of the job evaluation exercise in an organization: To rank the jobs in the order of importance based on the job duties.1.‖ -Kimball and Kimball 7.. It is non-personal in approach as it does not consider the abilities and skills of the job holders while evaluating a job. depeding upon their performance or scores in the job evaluation process. jobs are allocated to grades or levels. It is not concerned with the external worth of the job. Job characterises like duties. responsibilities and other relevant factors To develop job grades and pay grades for facilitating simple and efficient wage and salary administration To institutionalize the system of pay scale fixation in order to ensure consistency and uniformity To determine the pay scales of the employees in a systematic and scientific manner based on the relative worth of the jobs . i. job evaluation has the following characteristics:Job evaluation is primarily concerned with the determination of the worth of the job within an organization.1 Characteristics of Job Evaluation Based on these definitions. In Job evaluation. Determination of fair and equitable pay scales for jobs is the driving force behind the job evaluation process.e.‖ -International Labour Organization ― Job evaluation represents an effort to determine the relative value of every job in a plant and to determine what the fair basic wage for such a job should be.
It is possible to make a judgement about a job's contribution relative to other jobs in an organisation. not people. Specialization For the reason. a large number of enterprises have got hundred jobs and many employees to perform them. It is not the person that is being evaluated. The job is assessed as if it were being carried out in a fully competent and acceptable manner. All jobs in an organisation will be evaluated using an agreed job evaluation scheme. Therefore. division of labour and thereby specialization.3 Principles of Job Evaluation Clearly defined and identifiable jobs must exist. an attempt should be made to define a job and thereby fix salaries for it. Job evaluation is based on judgement and is not scientific. However if applied correctly it can enable objective judgements to be made. 3. This is possible only through job evaluation. The real test of the evaluation results is their acceptability to all participants. 2.To avoid or eliminate the employees‘ grievances against the bias and prejudices in the determination of the pay scales of the employees To enhance the ability of the organization in attracting and retaining the best talents. Job evaluators will need to gain a thorough understanding of the job Job evaluation is concerned with jobs. 7. Reduction in inequalities in salary structure It is found that people and their motivation is dependent upon how well they are being paid. Job evaluation can aid organisational problem solving as it highlights duplication of tasks and gaps between jobs and functions 7. These jobs will be accurately described in an agreed job description. Therefore the main objective of job evaluation is to have external and internal consistency in salary structure so that inequalities in salaries are reduced.4 Benefits of Job Evaluation 1. Helps in selection of employees .
Relevance of new jobs Through job evaluation. motivational and personality requirements of a job in addition to the job characteristics. Identification of the jobs to be evaluated . Basis for Career Planning and Development Since job evaluation considers the behavioural. it can also be used to determine the training and development requirements of the job holders. Harmonious relationship between employees and manager Through job evaluation. one can understand the relative value of new jobs in a concern.5 JOB EVALUATION PROCESS It is essential for an organization to develop a systematic and objective evaluation process to gain the confidence of the employees in the process.The job evaluation information can be helpful at the time of selection of candidates. Basis for Training Need Identification As job evaluation studies the job characteristics and job demands in terms of the efforts and skills required. An organization can have its own process of conducting job evaluation. it provides the basis for determining the career plans and succession plans of the organization. 6. This helps in bringing uniformity into salary structure. 8. harmonious and congenial relations can be maintained between employees and management. Standardization The process of determining the salary differentials for different jobs become standardized through job evaluation. 5. so that all kinds of salaries controversies can be minimized. Generally the process of job evaluation involves the following steps:1. 4. The factors that are determined for job evaluation can be taken into account while selecting the employees. 7. 7.
5. Then.Consequently. . the rating reflect the relative worth of a job in comparison to other jobs in the organization. It. These jobs are usually called benchmark jobs and served as yardsticks for determining the pay scale of all other jobs in the organization. for gathering relevant information. Selection of Benchmark Jobs To ascertain the comparative pay scales of all the jobs in the organization. the evaluators should do a thorough analysis of all the information available with them. 4. 6. Gathering Relevant Information about the Job The next phase is of job evaluation process is the collection of necessary information about the jobs being evaluated. Based on several surveys. Periodic Review and Feedback Developments in the external environment influence the organizations continuously and also cause change in the internal factors. It is very difficult to evaluate all the jobs of an organization. 3. the monetary value of each job is determined.First Step is the determination of jobs to be covered under the evaluation process. Determination of Job Ranking After analysis all the information related to the jobs. the evaluator assesses the extent of the presence of the chosen factors in the jobs. Wage and Salary Surveys At this stage. an organization conducts a survey of pay scales of the benchmark. the evaluator determines the rating for each job. Based on the results of such an assessment. the evaluators may select a few jobs which are normally found in every organization and are comparable in nature. For this the evaluator may adopt data collection techniques like interviews. therefore chooses a few key jobs which represent a group of similar jobs for job evaluation purpose. questionnaires and observations besides job description statement. Since similar factors are assessed in the evaluation process. jobs in other organization. 2.
The more skills. Therefore several systems of job evaluation have been developed which take into account the above mentioned factors either directly or indirectly. jobs are grouped on the basis of similarities found in their characteristics and value. as mentioned below: Job Ranking The job ranking method is the simplest and easiest job evaluation method. The characteristics may include the problemsolving skills required.6 Methods of Job Evaluation The more difficult the job. 7. the more a job is worth. but they are so general that they are of little use in translating specific jobs into rates of monitory compensation. The more scarce the labour supply and higher the demand. the communication and persuasion abilities needed. and the difficulty or stress involved in the job. These generalizations usually hold true for most jobs and serve as indicators of what the level of pay should be. the more it is worth. Job Grading method In this method. the more is its worth. the physical or mental efforts required. demand for creativity. There are four types of job evaluation methods. In this each successive job is higher or below than the previous one in sequence and all the jobs is arranged as per their requirement. Usually this technique is used to rank jobs according to the whole job rather than number of compensable factors.organizations are forced to review the jobs at periodic intervals to determine their worth in the changed context. jobs within each job group or class are eligible for the same pay scale or grade. education and responsibility required in a job. Point Method . Generally. jobs and the employees who perform those jobs are ranked from highest to lowest depending on their quality and value to the organization.
attitude.7 MERIT RATING Merit-rating is associated with performance appraisal of an employee. In this the worth of a job is determined on the basis of the extent of the presence of some defined factors in that job. health. Factor Comparison Method This method determines the relative rank of the jobs to be evaluated in relation to monitory scale. although it is equably suitable for grading other jobs as well. It is often used for evaluating white collar. Then each job is awarded points scored by it. This is a systematic approach for evaluating the performance of an employee on the job. five factors are generally evaluated for each job: Mental Requirements Skills Physical Requirements Responsibilities Working Conditions The factor comparison method is more scientific and complex than any other method. These standards may be in terms of critical job factors like competency. safety records. In this the organisation links the part of the employee‘s wages to their actual performance in comparison with the standards set by it. effort. I n this method . Maximum point values are assigned to each of the job factors required to be considered. regularity records. punctuality. responsibility and working conditions. 7. professional and managerial position. Merit rating aims at evaluating the relative worth of employees in the organisation before awarding them appropriately. initiative. The major factors are skill. These factors or points are later converted into money value. assume and endure. A job factor is a specific requirement levied upon the job holder which he must contribute. It is essentially a combination of the ranking and point systems. .It is one of the quantitative methods in job evaluation. which he performs. This is also called as personnel rating and employee evaluation.
decide the incentive payable to them. (5) It considers requirement of job. 7.1 JOB EVALUATION VS MERIT RATING Job-evaluation and merit-rating are compared in the following ways: Job Evaluation vs Merit Rating Job Evaluation (1) It evaluated a job or work Merit Rating (1) It evaluated a worker (2) It is for the purpose of fixing a (2) It is for the purpose of deciding base-wage for a job. contributions and potentials of employees in a working organization. reward for exceptional merit of worker. . etc. impersonal in nature. behaviour. It is worker. the organisation may assign points to each of these factors. (4) Useful for decision regarding wage (4) Useful and salary administration. for decision regarding promotion. which.7. counselling. placement. (5) It considers ability and performance of individual. Depending upon the importance of these factors to the job. skill match.dynamism. reliability and adaptability. Merit-rating is a formal. It is impersonal in nature. The employees overall performance in the job is then evaluated to determine their aggregate scores. training. etc. in turn. (3) It is independent of operator or (3) It is independent of job. objective procedure for evaluating personality.
a) Job Grading b) Job evaluation c) Job analysis d) Performance Appraisal 2. a) Paired Comparison b) Job Grading c) Single Factor Ranking d) Relative Ranking . Job grading a) Only i and ii b) Only ii and iii c) All except i d) Only iv 3. Subsequently. In the __________ method of evaluating jobs.7. Among the alternatives listed below. ____________ is a systematic process of analyzing and assessing jobs to determine the relative worth of each job in an organization and forms the basis for designing the compensation management system in the organization. the importance of each job in comparison with representative job is determined and then the job is ranked.8 QUIZ Complete all the review questions listed here to test your understanding of the topics and concepts in this chapter 1. Ranking ii. Several quantitative and non quantitative techniques are used for comparing jobs in an organization in order to classify them and attach monetary values to them. identify the non-quantitative technique(s). a key job is identified and its worth is determined. i. Factor comparison method iv. Point ranking method iii.
Wage differentials are likely to be systematic and in accordance with the content of each job iii. The point rating method is a quantitative technique of job evaluation. The two methods on which the factor comparison method is based are ___________ a) Ranking and Point ranking b) Job classification and job grading c) Job grading and ranking d) Decision band and point rating 5. However. job evaluation fulfils some other objectives as well. The main objective of job evaluation is to determine the relative worth of different jobs in the organization and provide the basis for compensation management system. a) Avoidance of discrimination of any kind in wage determination b) Determination of the position and place of a job in the organizational hierarchy c) Updating the employees skills d) Ensuring employee satisfaction with respect to compensation 6.4. It is based on the principle of two other methods used for job evaluation. It is a simple technique a) Only iii b) Only i and ii c) Only iii and iv d) Only ii and iv . What is/are the advantage(s) of this method? i. The system is accurate and dependable ii. Identify statement which is not one of these objectives. It is quickly and inexpensive method of job evaluation iv. The factor comparison method is a quantitative job evaluation technique.
‘ Minimum Wage. Such allowances include holiday pay. constitutes wages. and social security benefits. A healthy. and other allowances act as motivators. and Fair Wage Money is often looked upon as a means of fulfilling the basic needs of man. transportation. Prerequisite for effective incentive scheme 5. In India . In order to obtain. The basic wage is the remuneration by way of basic salary paid to the employee. Clothing. Promotions. you will be able to understand: 1. Types of Incentive schemes 8.nature and importance 4. retain and develop such workforce or employees. 1936. Section 2 (VI). education. Methods of wage payment 3. bonus. and security are possible because of money. Incentive compensation. Allowances on the other hand are paid in addition to the basic wage to maintain the value of the basic wage over a period of time. Food. A remunerative wage structure is the dominating force. monetary benefits. competent and devoted work force is the most precious asset of a successful organization. Living Wage. Wages and wage system in India 2. ‗any award of settlement and production bonus. if paid. Under the Payment of Wages Act.1 WAGES AND WAGE SYSTEM IN INDIA Wages refers to the total pay package which an employee receives on a periodic basis.CHAPTER-8 WAGE AND INCENTIVE COMPENSATION SCHEMES After reading this chapter. it is necessary that they are suitably rewarded for their services. which motivates employees to contribute their maximum worth to the enterprise The term ‗wages‘ in broad sense means any economic compensation paid by the employer under some contract to his employer for the services rendered by them.
Fuel. a committee was set up to brig out a report on minimum wage.2 LIVING WAGE . the financial condition of the establishment or the availability of workmen at lower wages. which would give for the average worker‘s family of four a total of 72 yards In respect of housing. 8. Minimum food requirements should be calculated on the basis of a set intake of calories as recommended by Dr. In any even the minimum wage must be paid irrespective of the extent of profits.1 MINIMUM WAGE A minimum Wage is defined by the committee as the wage which must provide not only bare sustenance of life but also preserve the efficiency of the worker.1. but it is usually determined through legislation. Aykroyd for an average Indian adult of moderate activity. The 15th Indian labour conference (1957) formally qualified the term ‗minimum wage‘ thus: In calculating the minimum wage. children. the rent corresponding to the minimum area provided for under the Government Industrial Housing Schemes should be taken into consideration in fixing the minimum wage. Minimum wage may be tied by an agreement between the management and the workers. Clothing requirements should be estimated on the basis of a per capita consumption of 18 yards per annum. and living wage. and adolescents being disregarded. the earnings of women.1. the standard working class family should be taken to comprise three consumption units for one earner. fair wage.in1948. lighting and other miscellaneous items of expenditure should constitute 20 % of the total minimum wage. 8.
.1. the general effect of the wage rise on neighbouring industries. and a measure of insurance. food. Such a wage was determined keeping in view the national income and the capacity to pay. the place of industry in the economy.e. The lower limit of fair wage is the minimum wage and the upper limit is the capacity of the industry to pay. shelter. It is fixed only by comparing with an accepted rate. sufficiently high to provide standard family with . and also education and medical needs. a measure of comfort and some insurance against the more important misfortune of lie. the capacity of the industry to pay. The wages must be fair. The living wage may be somewhere between the lowest level of the minimum wage and the highest limit of the living wage . therefore. the place of industry in the economy of the country. 8. Living wage is that which workers can maintain the health and decency.The living wage as defined by the committee is one which should enable the earner to provide for himself and his family food. clothing. the productivity of labour.3 FAIR WAGE According to the committee on fair wages. A living wage must be fixed considering the general economic conditions of the country. clothing. Hence a fair wage may depend upon such factors as productivity of labour. prevailing rates of waging. depending upon the bargaining power of labour.2 FACTORS DETERMINING WAGES The most important being the bargaining capacity of the employer and employees. Such a standard can be determined with reference to those industries where labour is well organised and has been able to bargain with the employees. and so on. level of national income. The concept of living wage. which is above the minimum wage but below the living wage. it is the wage. i. social needs. shelter. 8. varies from country to country. the level of the national income. medical care and education of children appropriate to the workmen. and the prevailing rates of wages in the same or similar occupations in neighbouring localities.
1936. higher wage rates should be paid for complicated and hazardous jobs.e. To obtain for the workers a just share of the fruits of e conomic development 2. The first step towards the evolution of wage policy was the enactment of the Payment of Wages Act.3 WAGE POLICY IN INDIA Wage policy refers to all systematic effotrts of the government in relation to national wage and salary system. authorising all the state governments to set up industrial tribunals which would look into disputes relating to remuneration. level of competition) as well as the prevailing condition of the economy. 1948. The prevailing rates of wages for similar type of work in the market (i. 8. It includes orders . Productivity of workers like workers who are more efficient and experienced should get higher wages. . If a job requires specialised skills and training. The next step was the passing of the Industrial Disputes Act. To set minimum wages for workers whose bargaining position is week 3. To bring about a more efficient allocation and utilization of human resources through wage and salary differentials 4. The nature and type of the work done by the workers. and son on to regulate the levels or structutres of wages and salareswith a view to achieveving economic and social objectives of the government. The main objective of the Act is to prohibit any delay of withholding of wages legitimately due to the employees. Another note able development that led to the evolution of wage policy was the enactment of the Minimum Wages Act. To abolish mal practices and abuses in wage and salary payments. For example. Standing of the particular organization and its financial capacity to pay higher wages. legislation.wages should be accordingly higher. 1947. Specifically the objectives of wage policy are 1.
and wage policies are normally implemented through persuasion. and Boards. which prohibits discrimination in matters relating to remuneration on the basis of religion. The Act was amended several times to make it applicable to more and more industries.000 and no bonus? If auto driver can earn Rs 3000 per month. Wide gaps exist between different wages and salaries of employees in the organized stores and of those in the unorganized. Some of the disparities are: 1. tobacco manufacturing. the latter earning much less than the former. 3. how much can a universe professor can earn? Rs 10. region or sex. The constitution of India committed the government to evolve a wage policy. Within the government sector. and the like. 5. plantations. Different industries have different have wage and salary structures resulting in disparities in remuneration for identical work.The purpose of the Act is the fixation of minimum rates of the wages to workers in sweated industries such as woollen. disparities in wages and salaries still persist. Technically speaking. 12000 plus per moth and a half-yearly bonus. flour mills. carpet making. Following the recommendation of the First and Second Plans. Differences exist between earnings of employees in the government sector and those in the private sector. salary differences exist among the employees of different departments. agriculture. 2. quarrying. Successive five year plans have also devoted necessary attention to the need for a wage policy. tribunals. Employees of MNCs are paid much more than their counterparts in host countries for identical work. mica. In spit of legislations. 1976. owners. 4. If an illiterate supervisor in a leather processing unit can earn Rs. how much should a . Then came the Equal Remuneration Act. The disparities are glaring. the Government of India constituted wage boards for the important industries in the country. A wage board is a tripartite body comprising representations from the government. and employees. a wage board can only make recommendations. oil mills.
4 METHODS OF WAGE PAYMENT There are two methods of wage payment. regardless of the time taken for production (piece rate system). The other methods-incentive schemes-are only a variation of the two or combined with time and piece rate systems. There are clerks in Mumbai who get nearly twice as much as a labour tribunal judge. The brief given to the committee was to suggest rational and integrated wage policy covering all sectors of the economy. The report was promptly and predictably shot down. not less. at the maximum of his grade. week or month. 1) TIME WAGE SYSTEM In this system the worker is paid on the basis of time spent on the work irrespective of the amount of work done. the government of India appointed a committee headed by Mr. The basis of this time may be hour. And a head clerk in LIC gets. It was criticized as anti-labour and impracticable.temporary lecturer in a college earn? Rs 1200 per month? And remain temporary forever. Soon after the committee submitted its report.the man who arbitrate everyone‘s wages and salaries. Bhootalingam in 1979. One method relates to the hours the employee is at work. The other method is related to the production or output. In order to correct such disparities. This is the oldest system of wage payment. . regardless of his output (time rate system). A sweeper in L&T is an income tax assessee but a BE or an MBBS degree holder works for Rs 800 per month in a small-scale unit or Rs 1200 in a private nursing home. 8. more than half of the salary of a high court judge. respectively. Suitability Quality of work is more important that the volume. there was hue and cry raised against the recommendations. day.
thus recognised in this system. Management is made to spend more on assuring close supervision and there by prevent wastage of time. the workers are paid at a stipulated rate per piece or unit of output. the time rate systems will help maintain the quality of products. tool making) where care is more significant than speed. instead of time. Suitability . It is favoured by trade unions. Workers try to make the work as long as possible so that they can earn more. Thus.Measurement of work is not convenient (indirect labour) Production involves delay and interruption due to uncontrollable factors. 2) PIECE RATE SYSTEM Under piece rate system. Suitable to beginners and learners. Efficiency is. irrespective of time taken by him in completing that work. Where the work requires a high degree of skill and dexterity. Merits It is simple to understand or operate. Workers are assured of guaranteed minimum wages irrespective of the output. The system is unfair since wages and productivity are not correlated. For precision work (pattern making. Demerits It makes no distinction between efficient and inefficient workers. In the system. Here speed is the basis of payment. labour cost per unit is increased. the rate is fixed per piece of work and the worker is paid according to the number of pieces completed or the volume of work done by him. Where work is of nature that efficiency can be measured by close supervision. It offers very little to capable and efficient workers in the form of incentive to increased production.
as workers are not paid for wasted time on the job. Idle time will be reduced to the minimum. The job is a standardised one. no minimum remuneration is guaranteed. As a result the general dexterity and skill of the workers are enhanced. estimates and budgets. as workers do not require supervisors to oversee their efforts. Cost of supervision is less. In their bid to earn more. Workers take great care in maintaining machines and tools properly because their breakdown would cause work stoppages and reduce their earnings. workers will try to adapt better and more efficient methods and thereby increase production. Piece rate are unsuitable in circumstances where work is intermittent and job cannot be standardised. there will be a tendency among workers to labour hard and overstrain themselves to record higher and higher output to get increased wages thereof overwork affects the health of workers. There is sufficient demand for output to guarantee continuous work. Beginners and average workers will not be able to earn reasonable wages because of their inability to complete the work as fast as their experienced counter-parts do. Work is of a repetitive nature Job rate can be fixed satisfactorily. Merits It provides encouragement for higher production by rewarding efficient workers in a suitable way. 8. Demerits Under the straight piece wage plan.5 NATURE OF INCENTIVE PAYMENTS . Quantity will be over emphasised at the cost of quality unless close supervision is maintained. Since wages are linked with output.Quality of work is not important. As wage rate is fixed per unit. it is easy to prepare quotations.
Unlike wages and salaries which are relatively fixed.5. etc. Incentives payments are quite substantial and are paid as regularly as wages and salaries. are offered to efficient workers for the time saved. There will be reduction in the total as well as unit cost of production.2 IMPORTANCE OF INCENTIVES The primary advantage of incentives is the inducement and motivation of workers for higher efficiency and greater output. They are defined as ―variable rewards granted according to variations in the achievement of specific results‖.Besides wages and salary employees are paid incentives upon their performance. 8. The standard time is set after making the time studies for the performance of a specific job. reduced lost time. 8. Incentives are the monetary benefits paid to workmen in recognition of their outstanding performance. through incentives.5. incentives generally vary from individual to individual. and from period to period for the same individual. Production capacity is also likely to increase. 8. better utilisation of equipment. reduced scrap. Minimum wages are guaranteed to all workers 2.3 DISADVANTAGES OF INCENTIVE . A standard time is fixed and the worker is expected to perform the given work within the standard time. It leads to reduction in supervision. reduced absenteeism and turnover and increased output. The international Labour Officer refers to incentives as ‗payment by results‘. Incentives by way of bonus.1 FEATURES OF INCENTIVE PLANS The characteristics of these plans are as follows: 1. Incentive packages are a very attractive proposition for managements because they do not affect employer‘s contribution to the provident fund and other employee-retirement benefits. 3. Earnings of employees would be enhanced due to incentives.5.
or when the new machines are introduced. Another disadvantage is that jealousies may arise among workers because some are able to earn more than others. Workers must be provided with necessary tools. Workers may oppose such introduction for fear that new piece or bonus rates set. when the job is restudied at intervals of time. they may slacken their rate of work in order to avoid rising output to a level which would make a restudy of the job necessary. press for a considerably higher minimum wage when they are paid by results than when they are paid by the hour. There is evidence that some workers paid by results have disregarded security regulations in order to achieve high output.There is tendency for the quality of products to deteriorate unless steps are taken to ensure maintenance of quality through checking and inspection. increasing the danger of accidents. management usually outwit their employees. Rate fixing involves delicate problems of judgement in which there is always a risk of error. if they do not like a scheme. Difficulty also arises in determining the standard performance. may yield lower earnings. Workers tend.6 PRE-REQUISITES FOR AN EFFECTIVE INCENTIVE SYSTEM. it may be concluded that in many industries or undertakings and for a large group of operations. Such pre-requisites are: 1. All things considered. The standards set must be realistic and must motivate workers to put in better performance. thus. One of the greatest difficulties with the incentive systems is in the setting of piece or bonus rates. well designed systems for payment by results shall yield advantages to all concerned. equipment and materials so as to enable them reach their standards. therefore. Many of these advantages will be realised provided sufficient safeguards are provided. 2. moreover. . Preparing incentives schemes is such a complex business. to regard their highest earnings as normal and may. often with the tactic connivance of the supervisor or foreman. The co-operation of workers in the implementation of an incentive scheme is essential because the employees somehow devise. 8. The scheme must be based on scientific work measurement. ingenious ways of evading or sabotaging the plan. Difficulties may arise over the introduction of new machines and methods.
charge hands. Indirect workers.3. helpers. The scheme should be properly installed and maintained. The scheme should operate by means of a well. to ensure that they are proportionate to effort. The reward should be clearly and closely linked to the efforts of the individual or group. Individuals or groups should be ale to calculate the reward they get at each of the levels of output they are capable of achieving. The other safeguards areThe incentive scheme should be appropriate to the type of work carried out and the workers employed. Simple It must be simple to operate and easy to understand Equitable All workers should get an equal opportunity to earn the incentive pay. started hurriedly. and these must be carefully assessed before embarking on an incentive programme. Provisions should be made for controlling the amounts paid. such as supervisors. 5. 4. crane operators. Create incentives for performance and disincentives for non performance. Set and review specific objectives for each employee periodically. 6.defined and easily understood formula. Many incentive schemes. foreman. canteen staff. Equal pay for equal work should be the rule Economical . Provisions should be made for amending rates in defined circumstances.6. 8. There should be management commitment to the cost and time necessary to administer incentive schemes properly. planned carelessly. There is greater need for planning. store keepers and clerical staff should also be covered by incentive schemes.1 ESSENTIALS OF A SOUND INCENTIVE PLAN Guarantee Minimum Wages It must guarantee minimum wages irrespective of the performance of the worker. and implemented in differently have failed and have created more problems for the organisation than they have tried to solve.
competitive rates in the industry.7 TYPES OF INCENTIVE SCHEMES (PRODUCTIVITY LINKED INCENTIVE COMPENSATION) Incentive schemes are many and varied. Prompt There should be very little time gap between performance and payment. As soon as the job is finished. Where earnings vary less proportionately than output. At the same time. the worker should get his (incentive) earnings promptly. Flexible It must be reasonably flexible so as to take care of changes in technology. 2. Motivating The incentives should be large enough to motivate the worker to superior performance. affecting the quality. Where earnings differ at different levels of output.The incentive plan should not be a costly affair. demand for and supply of skills. 4. etc. 8. . Support The incentive plan should take workers and unions into confidence. It should be implemented after consulting the workers and the union. It should be the outcome of mutual trust and understanding between management and workers. there should be checks and balances to ensure that the workers does not exert himself to painful levels. Where earnings vary proportionately more than output. 3. The international labour organisation (ILO) classifies all the schemes of payment by results into four categories. The benefits must exceed the costs. They are: 1. Schemes where the worker‘s earnings vary in the same proportion as output.
High Standard Hour. Taylor's Differential Piece Rate. Halsey Plan. Merrick Differential Piece Rate. As Output. Levels Of Output.Incentive Schemes Earnings Vary In The Same Prop. Bedaux Plan. Earnings Differ At Diff. Gantt Task System. More Than Output. Straight Piece Work. Barth Plan. Emerson's Efficiency Plan. Rowan Plan. Earnings Vary Prop. Than Output. Earnings Vary Less Prop. Standard Hour. High Piece Rate. .
day or month. The following example illustrates the method: Standard time = 10 hrs Rate per hour = Rs. if the rate per unit is 10 paise and the total output of an employee is 100 units. all gains or losses resulting from changes in his or her output accrue to the employer. and the total earnings of a worker are arrived at by multiplying the total output(measured in terms of units) by the rate per unit. oldest and the most commonly used method.10 =Rs. The straight piece-work and the standard hour systems are the two popular incentive schemes which come under the first category. The rate per job is then determined. unless he or she is guaranteed time wages.1. 10 In the standard hour system (also called 100 per cent gains-sharing). 1 Case 1 Time taken = 8 hrs . Here. THE INCENTIVE METHODS WHERE INCOMES VARYING IN SAME PROPORTION TO OUTPUT The chief characteristics of the schemes where incomes vary in proportion to output is that any gains or losses resulting directly from a worker‘s output accrue to him or her(leaving to the employer any gains or losses in overheads costs per unit of output). He or she is paid the same wages if he or she takes more than the standard time. standard time in terms of hours is fixed for the completion of a job. A worker is paid for a standard time at his or her time-rate if he or she completes the job in the standard time or less. In contrast. For example. the rate per unit of output is fixed. when the worker is paid by the hour. his or her earnings will be 100 x 0. Straight piece-work method is the simplest.
barth and bedaux. These schemes are called ―gain-sharing schemes‖ as both the employer as well as the employee shares the gains resulting from the saved time. rowan. 10. a) HALSEY SYSTEM Under the halsey system. the difference between the standard time set for the job and the time actually taken. he or she gets paid for the actual time. time wages are guaranteed even if the output of the worker is below standard. In other words. EARNINGS VARYING PROPORTIONATELY LESS THAN OUTPUT Four allied but different system come in this group. he or she gets paid at the time rate. The usual share is 50%. The following example illustrates the scheme: Standard time= 10 hrs Rate per hour= re 1 . If the worker takes the standard time or more to complete the job.Earnings =10 X 1= Rs. namely halsey. that is. standard time is fixed for the completion of a job and the rate per hour is also determined. at the time-rate plus a bonus which is calculated ―at‖ or ―as‖ a specified %age of saved time.00 Case 2 Time taken = 12hrs (a) Earnings if time wages are not guaranteed = 10 X 1= Rs10 (b) Earnings if time wages are guaranteed= 12 X 1=Rs 12 2. The percentage varies from 30-70 percent. Where the work is done in les than the standard time. The common feature of all these is that time is used as the measure of output and bonus is paid on the time saved. The worker may be paid for half (or any other fraction) of the time saved. the employer getting the balance. the remaining going to the employer.
Case 2 Time taken =12hrs Earnings=12 X 1= Rs12.Case 1 Time taken=10 hrs Earnings= 10 X 1= Rs10. to the standard time. Total Earning = 8+ 1 = Rs 9 b) ROWAN SYSTEM Under the rowan system too. This percentage is equal to the proportion of the saved time. The bonus takes the form of a percentage of the worker‘s time rate. the employee is entitled to bonus. the employee is paid for the time taken at the rate per hour. standard time and rate per hour are fixed. Rowan system operates on the following lines: Standard time =10 hrs Rate per hour = Re1 Case 1 . Case 3 Time taken=8hrs Earnings: Time wages=8 X 1=rs8. Bonus =50 % X 2 X 1=Rs1. If the time taken to complete the job is equal to or exceeds the standard time. If the time taken is less than the standard time. in addition to the time wages.
the barth variable sharing system does not guarantee the time-rate. Case 3 Time taken =8hrs Earnings=8 X 1=Rs 8 Bonus=2/10 X 8= Rs 1.60 Total Earnings = 8+1.60 = Rs 9. c) BARTH SCHEME Unlike the halsey and rowan systems. taking the square root of the product and multiplying it by the worker‘s hourly rate.95 X 1 .Time taken=10 hrs Earnings Case 2 Time taken=10 hrs Earnings =12 X 1= Rs 12. The worker‘s pay is ascertained by multiplying the standard hour by the number of hours actually taken to do the job.6 = 10 X 1= Rs 10. Pay = Rate per hour X √standard hour X number of hours actually taken For example: Standard time =10 hrs Rate per hour = Re 1 Case 1 Time taken = 10hrs Earnings = 1 X √12 X 10 =10.
a bonus which under the original plan is equal to 75 percent of the number of points earned. Thus. in excess of 60 per hour.94 X1 = Rs 8.= Rs 10. If a worker does not reach his or her standard. Each job has a standard number of Bs. Each minute of the allowed time is called a point or B.94 d) BEDAUX SCHEME Under the bedaux scheme. he or she is paid at the time-rate of the worker‘s hourly rate. the standard time for a job is determined. there are 60Bs in one hour. multiplied by one-sixtieth of the worker‘s hourly rate. The worker receives. in addition to his or her hourly rate.00 Case 3 Time taken =8 hrs Earnings = 1 X √8 X 10 =8.95 Case 2 Time taken =10 hrs Earnings = 1 X √10 X 10 = 10 X 1 = Rs 10. If a worker does not reach his or her An example to illustrate the bedaux system is as follows: Standard time =10 hrs Rate per hour = Re1 Case 1 . The rate per hour is also determined.
EARNINGS VARYING PROPORTIONATELY MORE THAN OUTPUT This category includes two methods (i) the high piece rate and (ii) the high standard hour system. but the increment in earnings for each unit of output above the standard is greater. For example.50 3. For each one percent increase in output above the standard. Under the former. as in straight piece work. there may be a 4/3 times increase in earnings as compared to one percent increase in earnings under .50 = Rs 9.Actual time =12 hrs Earnings Case 2 Actual time = 8 hrs Earnings = time wages= 8 X 1= Rs 8 Bonus Standard Bs =10 X 60 =600 Actual bonus =8 X 60 =480 Bs saved =120 =12 X 1= Rs 12 Bonus=75/100 X 120 X 1/60= Rs 1.50 Total earnings= 8+1. the earnings of the worker are in proportion to his or her output.
The higher rates start applying after the standards have been reached. If these increments were large enough and increased progressively with output. and a higher piece-rate for output above the standard with a large bonus of 50% of the time-rate when the standard output is attained. the case where the increment in. the Merrick Differential Piece Rate System. Similar logic applies to the high standard hour system. Earnings for one part of the range may vary proportionately less than output and for another part proportionately more. the worker also shares the earnings the earnings in overhead costs which results from an increased output.the straight piece rate system. a) TAYLOR’S DIFFERENTIAL PIECE-RATE SYSTEM Under this the (developed by F. This is not. These system can be best explained by describing how earning vary from minimum to maximum at different levels of output. 4.Taylor in 1880) there is a low rate for output below the standard. The main feature of these two schemes is that since is that since direct labour costs per unit increase for levels of output above the standard. EARNINGS DIFFERING AT DIFFERENT LEVELS OF OUTPUT This group includes several schemes. we take the following: Standard output = 100 units Rate per unit = 10 paise Differentials to be applied: .W. of course. the workers obviously could obtain all the savings in overhead costs. or more usually in the same proportion as the output. earnings remains the same for each successive increase in output. the Gantt task system and the Emerson‘s Efficiency System fall under the category where earnings differ at different levels of output. The Taylor‘s Differential Piece Rate System. To illustrate the Taylor‘s piece rate system. The amount of this share depends on the size of the increments in earnings which are payable at different levels of output.
so as to encourage new and average workers.10 = Rs 14.10 = Rs 7.40 Case 2 Output = 90 units Earnings = 90 X 80/100 X 0. For outputs above the standard. The Merrick system can be illustrated as follows: Standard output = 100 units Piece-rate Case 1 Output = 80 units Efficiency =80/100 X 100 =80% =10 paise . at which a bonus of 10 % of the time rate is payable. high piece-rates are paid.120 % of piece-rate at or above the standard 80 % of piece-rate when below the standard Case 1 Output = 120units Earnings =120 X 120/100 X 0.20 b) MERRICK DIFFERENTIAL PIECE-RATE SYSTEM This is a modification of the Taylor system with three instead of two rates. One large step is broken into two. with a further 10 % bonus on reaching the standard output. Straight piece-rates are paid up to 83% of the standard output.
As the efficiency is more than 83% but less than 100% of the base piece-rate applies: 90 X 110/100 X 0. which is set at a high level.90 Case 3 Output =110 units Efficiency =110/100 X 100 =110% As the efficiency exceeds 100%.20 c) GANTT TASK SYSTEM Under this system. the worker is entitled to a bonus of 20% of the time wages. the worker is guaranteed his or her time-rate for output below the standard. Case 2 Output = 90 units Efficiency = 90/100 X 100 = 90 % Earnings. On reaching the standard output or task. high piece rates are paid. 120%of the piece-rate applies: 110 X 120/100 X 0. The Gantt task system operates as follows: Rate per hour = Rs 0.Earnings As the efficiency is less than 83 %.50 .10= Rs 9. For outputs above the task.10 = Rs 13. only the base piece-rate applies.
Time wages = 8 X 0. Earnings = 8 X 0.10 Standard output = 80 units Time Taken = 8 Hrs Case 1 Output = 70 units As the output is less than the standard only time wages are paid to the worker.10 = Rs 11 d) Emerson’s plan . the worker is entitled to a high piece-rate.50 = Rs 4.00 Bonus =20/100 X 4 = Rs 4. the worker is entitled to time wage plus 20% of time wages as bonus.High Piece-rate = Rs 0.50= Rs 4 Case 2 Output = 80 units Earnings As the output is equal to the standard.80 Case 3 Output earnings =110 units As the output is more than the standard. 110 X 0.
the worker is paid by time-rate. an additional bonus of 1% is added for each additional 1% efficiency. thereafter. Up to 67% of efficiency. Time wage = 10 X 1 = Rs 10 Bonus =20/100 X 10 = Rs 2 Earnings = (10+2) = Rs 12 .Under this. which amounts to a 20% bonus at 100% efficiency. is paid to the worker. Thereafter. and the efficiency of each worker is determined by dividing the time taken by the standard time. a graduated bonus. The following example illustrates the method: Standard output in 10 hrs =100 units. 10 X 1 = Rs 10 Case 2 Output in 10 hrs = 100 units Efficiency = 100% The worker is entitled to time wages plus 20% of time wages as bonus. a standard time is set for each job. Rate per hour = Rs 1 Case 1 Output in 10 hrs = 50 units Earnings: Efficiency = 50% As the efficiency is below 67% the worker is entitled to time wages only.
clothing and shelter. 8. nevertheless. reduced scrap and the like are the other benefits of incentives. Jealousies creep in among workers. A ____________ wage should enable the male earner to provide for himself and his family. not only the bare essentials of food. . Time wages =10 X 12 = Rs10 Bonus =50/100 X 10 = Rs 5 Earnings = (10 + 5) = Rs 15 8.Case 3 Output in 10 hrs =130 units Efficiency =130% At the rate of 20% at 100% efficiency and 1%for everyone percent increase in efficiency. Reduced cost. too. but also a measure of frugal comfort including education for the children. Problems associated with incentive may be overcome and the plans may be made to serve their purpose. Introduction of an incentive scheme is difficult. Incentives are linked to performance.8 Summary Employees are paid incentives in addition to wages and salaries. reduced supervision. There are problems. the worker is eligible for 50%of the time wage as bonus. provided several safeguards are taken. This leads to better motivation among employees.9 QUIZ Complete all the review questions listed here to test your understanding of the topics and concepts in this chapter 1. Consultation and co-operation of workers are only examples of such pre-requisites. Quality of the products is likely to decline.
They include scholarship for employee‘s children. a) Intrinsic Rewards b) Non-Financial Rewards c) Incentives d) Benefits 4. and a measure of insurance against the more important misfortunes including old age. the ____________ tries to eliminate the limitations of time and piece rate systems while trying to combine their merits. or paid vacations for the employee with his family. reimbursement of medical expenses incurred by the employee and family. He completes the job in 5 hours. requirements of essential social needs. among the following types of wages. given that the standard time for a job is 8 hours and the hourly rate is Rs 4. is likely to be the highest in terms of value? a) Fair Wage b) Minimum Wage c) Living Wage d) Base Wage 3. Which. a) Minimum b) Good c) Living d) Generous 2. Calculate the extra earnings for a worker according to the Rowan Plan. ___________ are the rewards an employee receives for his/her employment and position in the organization. . Among the short term incentive plans. a) Rowan Plan b) Halsey Plan c) Barth Plan d) Progressive Bonus 5.protection against ill-health.
00 Rs. a) A holiday for two at Singapore b) Awards for exceptional performance c) Giving additional responsibility to the good performer d) Increasing the employee‘s annual bonus 7. The first central pay commission introduced the principle of ‗living wage‘ for _______________. Among the following ____________ is not a non monetary incentive. The nature of work in the company is such that it cannot be easily standardized. Helix creative works gives more importance to the quality of work done by its employees rather than the quantity. A basic wage plan that would be appropriate for the company is a/an _____________. 8.50 Rs. 7.a) b) c) d) Rs.00 Rs. a) Time Wage Plan b) Output based incentive plan c) Production based pay plan d) Piece wage plan 9.75 6.monetary incentives for their performance and contribution to the organization. a measure for of fugal comfort and also a measure of insurance against misfortunes like old age‖. the bare necessities for survival . Which of the following is one such survey conducted by the government? . An effective way to motivate employees is to give them non. Living wages should enable ―a male earner to provide for himself and his family. 7. a) Government Employees b) Private sector employees c) Agricultural Workers d) Journalists 8. 7. The Government of India conducts different surveys at various times in order to determine the way the wages are to be fixed at different levels.
The ______________ of incentive payment is generally used for groups.a) b) c) d) Working class family income and expenditure survey Top executive Compensation survey Annual Survey of the highest paid executives in India B-schools salary survey 10. a) Point rate system b) Progressive bonus c) Task bonus system d) Barth System . The emphasis here is on team work and coordination.
motivation and productivity in the organization. FRINGE BENEFITS AND SAFETY & ACCIDENT PREVENTION After reading this chapter.1 Features of Employee Welfare . of the employees over and above the wages paid which is not a necessity of the industry. An organization must view employee welfare measures as an investment rather than an expense. intellectual or social. This is because the profitability of an organization is directly linked to the productivity of its workforce. congenial surroundings.‖ -ILO at ARC 9.‖ -Arthur James Todd ―Labor welfare is understood to include such services. and amenities as may be established in or inside the vicinity of undertakings to enable the persons employed therein to perform their work in healthy. and to provide them with amenities conducive to good health and high morale. you will be able to understand: 1.1 INTRODUCTION TO EMPLOYEE WELFARE Employee welfare measures are one of the key inputs to bring about the desired level of employee satisfaction. facilities.1. Employee Welfare Measures 3. Safety Measures and Accident Prevention 9. Meaning. Definition “Employee labor welfare means anything done for the comfort and improvement.CHAPTER -9 EMPLOYEE WELFARE . Fringe Benefits – Need and Type 4. objectives and types of Employee Welfare 2. The basic objective of welfare measures is to ensure the physical and mental wellbeing of the employee.
employers. 9. Employee welfare strives to create a strong bond between the organization and the employees. Since employee welfare measures are not linked to the performance of the employees.2 TYPES OF WELFARE MEASURES . Employees. help them attract the best talents with ease. an organization can also have multiple objectives while developing employee welfare measures. These objectives could be: Employee welfare aims at creating a motivational environment. performance and efficiency among the employees. Organizations attempt to create goodwill for themselves in the labor market through welfare measures. 9. physical. which facilitates better cooperation from the employee for the plans and proposals of the organization. The long-term aim of welfare measures is to achieve a desired level of productivity. However. intellectual and moral well-being of the employees. Organizations look to obtain high employee involvement. commitment and satisfaction through welfare measures. which would. they have a direct and proportionate impact on the profits of the organization.1. trade unions and the government are the stakeholders of employee welfare measures. Employee welfare measures look to enhance the mental.2 Objectives of Employee Welfare The primary purpose of employee welfare measures is to improve the employeremployee relationship within an organization. It focuses on retaining the talented employees within the organization for a long time. in turn. Employee welfare is provided voluntarily by the organization to express its interest in the general well-being of the employees. Employee welfare is an ongoing process and not a one-time activity of the organization. It is usually provided over and above the statutory and contractual obligations of the organization towards workforce compensation.
Contract Labor ( Regulation and Abolition) Act. This facilities help the . 1970: this deals with provisions like: In factories where work-related night-staying by contract employees is necessary.Statutory Welfare Facilities Transport Facilities: These are provided by an organization to carry its employees to and from their homes. etc NON. These are facilities offered by the organizations in the compliance with the central and state government regulations. The contractor must provide a sufficient number of drinking water. Facilities under Non. toilet and washing facilities. Under this act there are various sections which governs employee welfare measures like: Health and safety of the employee Clean and tidy working place should be provided to the employees.STATUTORY WELFARE FACILITIES Non-statutory facilities may include the facilities offered by the employers voluntarily and also those created by the employees themselves through their unions and other agencies.The welfare measures undertaken to improve the well-being of the employees can be classified broadly into two categories. restroom facilities must be provided. The central government has enacted several acts to protect the interests of the employees. The objective behind this is improving the general well-being of the employees and to improve their cooperation for the present and future activities of the organization. Canteen facilities must be available in every factory. These are: STATUTORY WELFARE FACILITIES In this welfare facilities are undertaken as per the requirements of the laws. Acts under Statutory Welfare Facilities Factories Act. 1948: It is a central act enforced by the state governments and is applicable to all the factories engaged in manufacturing activities.
Canteen Facilities: many organizations provide subsidized food to their employees through canteen facilities. Employers: Employers have the first and direct responsibility to provide welfare facilities to the employees. the welfare of the employees is one of the comprehensive responsibilities of the employers. Extra-Mural Facilities. Likewise there are many facilities like Recreation facilities. In fact. trade unions and other voluntary agencies. With the help of this facilities the problem of distance are easily overcome Housing Facilities: The purpose of offering housing facilities is to improve the standard of living of the employees. safety and welfare of the employees working in factory premises.employees save time and energy and avoid inconvenience. This may be in the form of skill development through training programmes or sponsoring formal education in external educational institutes. E-Commuting and Flexi-Time facilities. They usually provide these facilities to attract and retain the talented employees. Intra-Mural Facilities. 9. These canteens may be located inside or outside the factory premises. It enables the employers to get the services of their employees quickly and reliably. . Central Government: it is empowered to make rules to protect the health. the responsibility for employee welfare facilities rests not only with the employers but also with the central and state governments. Education Facilities: Many organizations encourage their employees to pursue their studies in different forms.3 EMPLOYEE WELFARE RESPONSIBILITY In India. It enacts and amends laws from time to time to ensure that the employees are provided with the basic welfare facilities in their work spot. Insurance facilities. Their active involvement in the employee welfare facilities is crucial to the success of the welfare programmes.
9. 9. State Government: These are normally the enforcing authority for the laws enacted by the central government from time to time. Limitations of Welfare Measures High Labor cost Absence of Measurement Tool Lack of Justification for Expenditure Risk of Executing Statutory Welfare under Duress. These benefits are referred to as ‗fringe benefits‘ because many years ago. or fringe components of compensation.4 FRINGE BENEFITS The term fringe benefits refer to the extra benefits provided to employees in addition to the normal compensation paid in the form of wage and salary. Merits of Welfare Measures High Employee Retention Improve Productivity and Efficiency Better Focus on Job Preserve Physical and Mental Health Improve the Standard of living Cordiality in Labor-Management Relations. they have also grown.1 Features of Fringe Benefits They are supplementary forms of compensation. Now days these benefits have became important part of a comprehensive compensation package offered by employers to employees. relatively inconspicuous.4. they were small. . trade unions have taken an active role in offering welfare facilities to the employee in order to improve their well-being. They can also create their own laws to regulate the conditions of employment and protect the welfare of the employees working in various employments. Trade Unions: In recent times. Buy along with times.
the other union persuades management to provide a new one. Fringe benefits satisfy the worker‘s economic. It improves morale and works as an effective advertisement.5 OBJECTIVE OF FRINGE BENEFITS Originally fringe benefits systems purported to develop a climate for healthy employer employee relationships minimize excessive labour turnover costs and provide a feeling of individual security against hazards and problems of life with a view to eventually enhancing employee loyalty to the company and improving productivity. social and psychological needs. Trade Union Demands: Trade unions compete with each other for getting more and new variety of fringe benefits to their members. Provident Fund is a statutory benefits where as transport is a voluntary benefit. They may be statutory or voluntary. To Improve Human Relations: Human Relations are maintained when the employees are satisfied economically.They are paid to all employees based on their membership in the organization. socially. As a Social Security: It is a security that society furnishes through appropriate organization against certain risks like accidents and occupational diseases to which its members are exposed. 9. and psychologically. . Benefits like safety measure.4. Employer’s Preference: Employers also prefer fringe benefits to pay-hike. They are indirect compensation because they are usually extended as a condition of employment and are not directly related to performance. are included in it with a view to provide security to his employees against various contingencies.2 Need for Fringe Benefits Employee Demands: Employees demand more and varied types of fringe benefits rather than pay hike because of reduction in tax burden on the part of employees and in view of the galloping price index and cost of living. medical facilities. If one union succeeds in getting one benefit. 9. Some of the objectives are as mentioned below: To create and improve sound industrial relations. They help raise the living conditions of employees. as fringe benefits motivate the employees to give their best to the organization.
medical benefit. unhealthy working conditions and to protect the worker‘s productive capacity. 3. dependant‘s benefit. holiday pay.5. sickness benefit. Workmen’s Compensation: This is intended to meet the contingency of invalidity and death of a worker due to an employment injury or an occupational disease specified under the Workmen’s Compensation Act. 1. Safety and Health: Employee‘s safety and health should be taken care of in order to protect the employee against accidents. 4. his job becomes secure. disablement benefit. a minimum and continuous wage or salary gives a sense of security to the life. and paid vacations. Payment for time not worked: This category includes. etc. maternity benefit. hours of work. Benefits under this Act include. clinical and dispensary facilities are provided by organizations not only to employees but also to their family members. To create a sense of belongingness among employees and to retain them. 5. Health Benefits: Today various medical services like hospital. Hence.To motivate the employees by identifying and satisfying their unsatisfied needs. To protect the health of the employees and to provide safety to the employees against accidents.1 TYPES OF FRINGE BENEFITS There are mainly five categories that are being offered in Indian Organization. 9. 1923 at the sole responsibility of the employer. To meet the requirements of various legislations relating to fringe benefits. 2. When the employee‘s services get confirmed. Further. Employee Security: Physical and job security to the employee should also be provided with a view to ensure security to the employee and his family members. paid holidays. To promote employees‘ welfare. To provide security to the employees against social risks like old age benefits and maternity benefits. . fringe benefits are called golden handcuffs.
(c) deposit linked insurance. consumer societies. Voluntary Arrangements: However. Industrial safety or Employee safety refers to the protection of workers from the danger of industrial accidents. parties and picnics and miscellaneous facilities. Old age and retirements benefits: Industrial life generally breaks join family system. in simple terms. (b) pension. tailored to meet the needs of individuals and costing public sector and private sector organizations dearly in terms of rupees. required to devise newer benefits to attract and retain competent personnel.1 SAFETY Safety refers to the absence of accidents. These benefits include (a) provident fund. Today. Stated differently. Safety. means freedom from the occurrence or risk of injury or loss. holiday homes. (d) gratuity and (e) medical benefit.6 THE FUTURE OF FRINGE BENEFITS Current benefit packages have evolved over the years from the plans that addressed the basic needs of the workers and provided minimum benefited to the individuals. housing. more sophisticated and more demanding of remuneration including fringe benefits. 9. we see a much mire complex pattern of plans with enhanced flexibility. 9. 9. clinics. dispensaries and homeopathic dispensaries. educational facilities.7. legal aid. employee counseling. Welfare and Recreational Facilities: This includes benefits like canteen. keeping a watch on the benefits costs.2 ACCIDENTS . Employers are. most of the large organizations provide health services over and above the legal requirements to their employees free of cost by setting up hospitals. 8. credit societies. high living cost and increasing aspirations of the employee and the family members. transportation. therefore. safety refers to the protection of workers from the danger of accidents.7 SAFETY MEASURES AND HEALTHY ENVIRONMENT 9.6. The saving capacity of the employee is very low due to lower wages. welfare organizations. Employees in general are more educated. 7.7.
To a large extent. or a radiation results in personal injuries. loss on account of down-time of operators.7. in the form of compensation payable to the dependents of the victim if the accident is fatal. More serious than the direct costs are the indirect or hidden costs which the management cannot avoid.3 NEED FOR SAFETY: An accident-free plant enjoys certain benefits these can be categorized as under: Cost Saving: Two types of cost are incurred by the management when an accident occurs. The indirect costs are three to four times higher than the direct costs. TYPES OF ACCIDENTS: There are various types of accidents which can be classified as major and minor categories. Employees in safe plants can devote more time .An accident is an unplanned and uncontrolled event in which an action or reaction of an object. Increased Productivity: Safety plants are efficient plants. a substance. There are the direct costs. damages to equipment etc. slowed-up production rate of other workers. safety promotes productivity. a person. and medical expenses incurred in treating the patient if the accident is non-fatal. these includes. Accidents Internal External Minor Major Fatal Temporary Partial Total Disability Permanent Partial Total 9.
This is possible only if there are: Comprehensive and effective systems for reporting all accidents causing damage or injury. Industrial accidents result from a multiplicity of factors. 9. and poor training facilities. Managers must undertake accident prevention measures to minimize the pain and suffering the injured worker and his/her family is often exposed to as a result of the accident. Moral: Safety is important on humane grounds too. 2. Five basic principles must govern the safety programme of an organization.4 SAFETY PROGRAMME: Safety programme deals with the prevention of accidents and with minimizing the resulting loss and damage to person and property. But these have to be traced to their root causes. insufficient attention to the design of safety into the system. There are laws covering occupational health and safety. Adequate accidents records and statistics. too. provide effective safety facilities and equipment and to make prompt remedial action. inadequate supervision. and . analysis and elimination of hazards. The five principles are: 1. Systematic procedures for carrying out safety checks. an unsystematic approach to the identification. and penalties for noncompliance have become quite severe.to improving the quality and the quantity of their output and spend less time worrying about their safety and well being. Legal: There are legal reasons too for undertaking safety measures.7. The most important function of safety programmes is to identify potential hazards. The responsibility extends to the safety and health of the surrounding community. which are usually faults in the management system arising from poor leadership from the top. inspection and investigations. Methods of ensuring that safety equipment is maintained and used.
All employees should be given thorough training in safe methods of work and they should receive continuing education and guidance on eliminating safety hazards and preventions of accidents. 3. The safety policies of the organization should be determined by the top management and it must be continuously involved in monitoring safety performance and in ensuring that corrective action is taken when necessary. The management and the supervision must be made fully accountable for safety performance in working areas they control.5 CAUSES FOR ACCIDENTS The causes for accidents can be classified into two groups.Proper means available for persuading managers. supervisors and workers to pay more attention to safety matters.7. 4. . 5. Strategic choice Development of Safety Policy Evaluation of Effectiveness Organization for Safety Implementation of the programme Analysis of causes for accidents Fig: SAFETY PROCESS 9.
Four basic methods are available for the prevention of accidents— engineering revision.6 ACCIDENT RATES Accidents are described in terms of frequency. severity and incidence. His/her application of the art of supervision to the control of worker performance is a factor which exerts the greatest influence in successful accident prevention. personal adjustment and discipline.7. irrespective of their size and age. Majority of accidents occur because of human failure. 9. There are few principles or measures that are applicable to all industrial establishments. Safety incentive programs should focus on processes rather than outcomes. Mathematical formulae are used to calculate accident rates. . severity and incidence records. for calculating the incidence rate the formula is: Incidence rate = Number of recordable injuries×1million Number of employee exposure hours 9. Human Failure: This leads to an accident when the employee ignores safety precautions and commits an unsafe act.8 REMEDIES The methods and devices for the prevention of accidents are now available in plenty. Organizations generally maintain frequency. The supervisor or the foreman is the key person in industrial accident prevention. These principles are: The methods most valued in accident prevention are analogous to the methods required for the control of quality. Machine Failure: This refers to faulty mechanical or physical conditions leading to accidents. persuasion and appeal. cost and quantity of production. Thus.
besides instructing the employee about the course of . causing harm to the health and well being of the employees. which makes him unfit to resume his duties in next 48 hours‖. skills and methods of work.9 QUIZ Complete all the review questions listed here to test your understanding of the topics and concepts in this chapter 1. 1884 b) Factories Act. 1948 c) Mines Act. 1952 d) Dangerous Machines (Regulation) Act. What are these employees known as? a) ‗Accident prone‘ employees b) ‗Careless‘ employees c) ‗Casual‘ employees d) ‗Sloppy‘ Employees 4. These mistakes at times may result in injuries and can sometimes prove to be fatal. the _____________ states that ― it is an occurrence in an industrial establishment causing bodily injury to a person. Which of the following is not a cause behind such accidents? a) Technical Errors b) Occupational hazards and Risks c) Human errors d) Absence of Proper Legislation 3. What is the full form of ILO? a) International Labor Organization b) International Legal Organization c) Indian Labor Organization d) Indian Legal Organization 5. Some employees in an organization are highly susceptible to human errors and tend to make a lot of mistakes. a) Explosive Act. With respect to the accidents.9. ___________ is concerned with providing immediate job knowledge. 1983 2. An unsafe working atmosphere in an organization results in accidents.
if it unfortunately occurs a) Safety Engineering b) Safety Training c) Environment Management d) Root cause analysis .his/her work in a particular department or a job and training him/her on how to prevent accidents and handle an accident situation.
Effects of Grievances 3. transfer. seniority. It must involve an interpretation or application of the provisions of the labour contract.1 CHARACTERISTICS OF GRIEVANCES On the basis of these definitions. Discipline 10.1 INTRODUCTION ―A grievance is a type of discontent which must always be expressed. overtime. legitimate or irrational. characteristics and forms of Grievances 2. 10. It is the state or feeling of discontent or dissatisfaction about any aspect of an organization. It can be valid or ridiculous but must grow out of something connected with company‘s operations or policy.The National Commission on Labour. Flippo ―The complaints affecting one or more individual workers in respect of wages payments. The cause of a grievance may be real or imaginary. serious or inconsequential. Meaning. you will be able to understand: 1. we can make out the following characteristics of grievances: Grievances arise out of the perceived injustice or fair treatment felt by the aggrieved employee.CHAPTER-10 ADDRESSING EMPLOYEE GRIEVANCE AND DISCIPLINE After reading this chapter. leave. genuine or fake. work assignment and discharge constitute grievances‖. Techniques for Grievance Identification and Grievance Procedure 4. .1.‖ – Edwin B. promotions.
Low quality of production and productivity. Supervisors who fail to properly abide by and administer the contract. contradictory. Grievances generally arise from the following sources: Contract terms. It is normally expressed in a written form. 10. 10. b) imaginary. relatives. Increase in the wastage of material. But it should be expressed in some form. and the organization as a whole. managers. friends. Working conditions and pay arrangements. On production includes: Low quality of production. The effects are: i. wage hike has been agreed but not implemented citing various reasons. neighbors. which are too general. If he/she is under pressure from family. still it has to clear the ‗fog‘ immediately. a) Factual: A factual grievance arises when legitimate needs of employees remain unfulfilled. . if they are not identified and redressed.2 FORMS OF GRIEVANCES A grievance may take any of the following forms: a) factual. or ambiguous. b) Imaginary: when an employee‘s dissatisfaction is not because of any valid reason but because of a wrong perception. c) disguised. It must arise only out of the job of the employee in the company and not out of family or personal problems. spoilage/breakage of machinery.A grievance may be voiced or unvoiced. wrong attitude or wrong information he has. which are in some manner unsatisfactory to the employees. If a new recruit gets a new table and almirah.g. Such a situation may create an imaginary grievance. c) Disguised: An employee may have dissatisfaction for reasons that are unknown to him. Employees who fail to live up to the conditions set by the management or who neglect adhering to the terms of the contract.3 EFFECTS OF GRIEVANCES Grievances. this may become an eyesore to other employees who have not been treated likewise previously. Though management is not at fault in such instances. may adversely affect. he/she may reach the work spot with a heavy heart. e. workers.
Reduces the level of commitment.1 ADVANTAGES OF HAVING A GRIEVANCE HANDLING PROCEDURE THE FOLLowing are some of the distinct advantages of having a grievances handling procedure: a) The management can know the employees‘ feelings and opinions about the company‘s policies and practices. In view of these adverse effects. They are compelled to listen to subordinates patiently and sympathetically. b) With the existence of a grievance handling procedure. by virtue of their professional knowledge and experience. Certain problems of workers cannot be solved by first line supervisors. He can let off steam through an official channel.4 NEED FOR A GRIEVANCE PROCEDURE Thus. They affect the employee morale adversely. Increase the degree of supervision. Increases the incidents of accidents. 10. sincerity and punctuality. It can feel the ‗pulse‘ of the employees. Increase in indiscipline cases. ii.Increase in the cost of production per unit. Hence. c) It keeps a check on the supervisor‘s attitude and behaviour towards their subordinates. On the employees: Increase the rate of absenteeism and turnover. for these supervisors lack the expertise that the top management has. grievances affect not only the employees and managers but also the organization as a whole. On the managers: Strains the superior-subordinate relations. If the individual grievances are left ignored and unattended. the management has to identify and redress the grievances in a prompt manner. the employee gets a chance to ventilate his feelings. . iii.4. Reduces the level of employee morale. it is essential to have a proper grievance handling procedure for the smooth functioning of the organization. Increase in unrest and thereby machinery to maintain industrial peace. control and follow up. there is a danger that these grievances may result in collective disputes. 10.
if the complaints are serious and sensitive in nature. he might be able to find out the real reason why ‗X‘ is leaving the organization. The calls for a proactive rather than a reactive approach of waiting for the grievance to reach it formally. The purpose of this system is to provide an outlet to the employees to secretly express their complaints without the fear of being victimized. If the employees is not providing fearless answers. Employee can get their grievance redressed in a just manner.5 TECHNIQUES OF GRIEVANCE IDENTIFICATION A good organization must have the ability to detect. To elicit valuable information. c) OPINION SURVEY While a gripe box is an impersonal means of receiving complaints . an exit interview mat be conducted to obtain information about job-related matters. the organization must perfect a system to identify the simmering trouble in advance and solve it before it gets out of control. a) EXIT INTERVIEW When employee quit an organization for any reason. analyze and correct the causes of potential employee dissatisfaction before these become grievances.d) The morale of the employees will be high with the existence of proper grievance handling procedure. If the manager tries sincerely through an exit interview. 10. This method is more effective than suggestion box. Gripe box are usually kept at prominent places in the office for receiving anonymous complaints pertaining to any aspect of work.BOX SYSTEM Under this system employees can drop their written complaints in the boxes kept by the organization. an opinion survey is direct and personal means of gathering information from . the manager must encourage the employees to give the correct picture so as to rectify the mistakes promptly. b) GRIPE. For this. he may be given a questionnaire to fill up and post the same after getting all his dues cleared from the organization where he is currently employed. It may adopt any one of the methods to identify employee dissatisfaction.
Settlement at the lowest level 2. If a particular employee is not getting along with the people. Each organization can develop and practice its own procedure to redress the grievance of the employees. the workers are encouraged to call on the relevant manager at any time.6 THE GRIEVANCE PROCEDURE The best way to handle grievance is to prevent it from arising in the first instance by creating a positive work environment. This method will be effective only when there is mutual trust in the relationship among the managers. and . strikes and other radical disputes.DOOR POLICY This is the progressive style of gathering complaints from the employees. Nevertheless. snap meetings and collective bargaining sessions are the various forums available for the employees to get to know the employee‘s state of mind. the supervisors and the employees.ay follow an ad hoc approach to grievance handling. Since the supervisor is close to the scene of action. periodical interviews. The three fundamental principles governing any grievance settlement procedure are: 1. In this system. grievance procedures are the keystones of industrial relations because of their ability to resolve disputed issues while work continues without litigation. Settlement as expeditiously as possible. large organization may have a well established system for a grievance procedure while small ones .the employees about their existing grievance. feelings and complaints with him. for example. e) OBSERVATION A manager/ supervisor can usually track the behaviors of people working under him. showing indifferences to commands. the next way is to have an effective mechanism to handle the reported grievance in a mutually satisfactory and expeditious manner. Group meetings. 10. reporting late for work or is remaining absent the signal are fairly obvious. he can always find out such unusual behaviors and report promptly. d) OPEN. spoiling material due to carelessness or recklessness. to freely share their opinions.
Usually.3. Settlement to the satisfaction of the aggrieved. The committee would discuss the issue in detail and reach a decision for settling the grievance. After ascertaining the facts of the complaint . . if it could resolve it. We shall now discuss these stages ion detail. the stage is set for referring the issue to the arbitrator for third-party meditation. the employee grievance becomes the union grievance and it is referred to the grievance committee consisting of members representing both the management and the labour union. the supervisor takes the necessary action to settle the issue and informs the employee of his decision. the aggrieved employee goes to the higher authorities like the sectional/departmental head or any other competent person for the settlement of his grievance. the concerned supervisor arrives at a decision and communicates it to the aggrieved employee. At this point. the employee is normally accompanied by the middlelevel union leaders. otherwise the aggrieved employee proceeds with the next course of action. STAGE 1 In the first stage. also called. the matter ends there. If the employer is not satisfied yet. STAGE 4 If the grievance still defines solution. Now. There are five stages but it is not necessary that each grievance must pass through all these stages. STAGE 3 At this stage. the arbitrator is chosen jointly by the management and the union. Union representative may or may not accompany the aggrieved employees to the supervisor. a grievant. When the employee is satisfied. he would request his union to process the grievance and adopt it as a union grievance. the concerned supervisors in consultation with the higher level union leaders write the issue to be arbitrator. the aggrieved employee. After analyzing the grievance in detail and seeking relevant explanations. STAGE 2 Now. makes a written/oral submission to his immediate supervisor about his grievance. It is also possible to that the committee may refer the matter to higher level.
seeking settlement of his grievance. to be sound and effective should possess certain pre-requisites. . etc. b. depending on the nature and magnitude of the grievance and other situational necessities. if found genuine 10. The grievance procedure.STAGE 5 Grievance arbitrator is the final stage of the grievance procedure. the maximum in which the redressal is assured. the grievance redressal method adopted in smaller organizations is to allow the aggrieved employees to discuss their grievances openly with the management and get their grievances redressed. These stages are: Stage I: The aggrieved employee makes a written or oral representation to the frontline supervisor. the non-unionized and/ or smaller organizations normally adopt a simple. The arbitration hearings are quasi-judicial proceedings. compulsory and binding on both the management and the union. Generally. two-stage procedure for settling the grievances of the employees. The arbitrator‘s decision is final. Unattended grievance may culminate in the form of violent conflicts later on. the labour officer is involved in the process.1 ESSENTIAL PRE-REQUISITES OF GRIEVANCE PROCEDURES Every organization must have a systematic grievance procedure in order to redress the grievance effectively. the issue goes to the next stage. Conformity with statutory provisions: Due consideration must be given to the prevailing legislation while designing the grievance handling procedure. Higher levels of management may get involved in the grievance redressal procedure. He acts as a mediator between the aggrieved employee and the supervisor in arriving at a settlement. in the absence of any formal grievance procedure. The redressing officer must also know the limits with which he can take the required action.6. and if the redressal efforts fail. However. whether the compliant should be written or oral. Unambiguity: every aspect of the grievance handling procedure must be clear and unambiguous. Stage II: In this stage. All employees should know whom to approach first when they have a grievance. a.
Identify Grievance: employee dissatisfaction and grievance should be identified by the management if they are not expressed. Implement and Follow-up: Implementation of the solution must be followed up at every stage in order to ensure effective and speedy implementation. Promptness: The grievance of the employee should be promptly handled and necessary action must be taken immediately. f. e. c. Analyze and solve: The information should be anlaysed. opinions.2 STEPS IN THE GRIEVANCE PROCEDURE a. Collect data: complete information must be collected form all the parties relating to the grievance. e. 10. Information should be classified as facts. If they are ventilated. f.3 ESSENTIALS OF A GOOD GRIEVANCE PROCEDURE A good grievance procedure must fulfill the following conditions: Legally Sustainable It should be ensured by the organization that its grievance procedure is in conformity with the existing law of nation. management has to promptly acknowledge them. d. it may effect the morale of other employees as well.up: The personnel department should keep track of effectiveness and the functioning of grievance handling procedure and make necessary changes to improve it from time to time.6.6. data. Simplicity: The grievance handling procedure must be simple and short. b. 10. Follow. This is good for both the employees and the management. Training: The supervisors and the union representatives should be properly trained in all aspect of grievance handling beforehand or else it will complicate the problem. Define Correctly: The management has to define the problems properly and accurately after it has been identified/ acknowledged. etc. d. If the process is complicated then it may discourage employees and they may fail to make use of it in a proper manner.c. The procedure cannot violate any . alternative solution to the problem should be developed and the best solution must be selected. because if the wrong doer is punished late. Prompt Redressal: the grievance must be redressed by implementing the solution.
of the rights of the employees guaranteed by law. In case of disagreement between the grievance procedure and the legal provision on may matter, the latter is supreme and binding. Mutually Acceptable In order to be effective, the grievance procedure must enjoy the confidence of all the relevant parties, namely, the management ant the employees ant their unions. The grievance procedure should not be viewed or used as a battleground by a party to defeat the other. Easily Understandable The grievance procedure must be reasonably simple and easily understandable. It should be known to all the employees of the organization of the organization. If all the employees has a grievance on hand, he must know what is to be done and who is to be contacted. Highly Flexible The grievance procedure must be highly flexible enough to respond to the reported grievance quickly. It should not get bogged down in any procedural delay. As far as possible, the number of stages ib grievance procedure should be kept to the minimum. There should also be a time limit at each stage to redress the grievance. In fact, promptness in grievance settlement indicates the efficiency of the system. To the extent possible, the grievance should be settled at the earliest stage to redress the grievance. Sufficiently Knowledgeable The managers, supervisors, union leaders and others dealing with employee grievance must be well-trained in the grievance handling procedure. They should have sufficient knowledge and a good exposure to the techniques of grievance redressal. 10.6.4 BENEFITS OF THE GRIEVANCE REDRESSAL PROCEDURE A sound grievance procedure offers the following benefits to an organization:
Enables the management to know the pulse of its employees by learning about their feelings and opinions about the policies and practices of the organization. Provides a channel to the aggrieved employees to express their grievance about various aspects of their jobs formally. Provides clues about the behavior and attitude of the managers and supervisors towards their subordinates. Gives an assurance to the employees about the existence of a mechanism for the prompt redressal of their grievance. Keeps up the morale of the employees by ensuring that their grievance will be redressed in a fair and transparent manner. 10.7 ADMINISTRATION OF DISCIPLINE ―Discipline is a force that prompts an individuals or a group to observe the rules, regulations and procedures, which are deemed to be necessary to the attainment of an objective.‖ William R. Spriegel and Edward Schultz ―Discipline is the state of employee self-control and orderly conduct that indicates the extent of genuine teamwork within an organization.‖ R. Wayne Mondy Disciplinary action refers to the punishing the employees who fail to meet those standards of behaviour. Many organizations maintain a disciplinary policy or system to regulate the behaviour of the employees and deal with the acts of discipline. Some organization s even conduct discipline management training for their supervisors and managers to help them understand the tactics of managing discipline among the employees effectively. 10.7.1 CHARACTERISTICS OF EMPLOYEE DISCIPLINE Employee discipline as a concept must have a few necessary characteristics. The necessary characteristics of discipline derived from these definitions are: Standard Behaviour
Discipline involves setting a standard behaviour for the employees to follow in the organization. An organization must express the standard behaviour in the form of a code of conduct for its employees. Driving Force Discipline is a force that derives the employees of an organization to observe the code of conduct in the organization. Positive or negative in nature The force may be positive or negative. A positive force rewards the employees who observe the rules of the organization while a negative force punishes those who violate such rules and regulations. Voluntary or Imposed Discipline may be voluntary or imposed. In the case of voluntary discipline, an employee develops a discipline on his own, which is called selfdiscipline. In the case of the imposed discipline, the employees observe rules and regulations out of external force or threat. A right of the Management Imposing discipline in the form of rules and regulations is an inalienable right of the management. The employees or unions can challenge this right only when these rules are not fair, just, reasonable or consistent. An Element of Control Process Discipline is an element of management control process. As such, it is an aspect of standard behaviour in the control process. An evaluation of the actual behaviour of employees would show the observance or inobservance of standard behaviour, i.e. the discipline of the employee.
10.8 OBJECTIVES OF DISCIPLINE Traditionally, the purpose of discipline is to punish the employees for the violation of rules and regulations. In those days, to impose discipline, organization depended predominantly on the threat of punitive action. In modern times, discipline aims at encouraging employees to observe self-discipline in behaviour and performance so that both the employees and the employers benefit out of it. At present, organizations accord a high priority to developing self-discipline among the employees through necessary training and counseling. We shall now see the objectives of the contemporary discipline system.
Goal Accomplishment Achieving the corporate objectives is an important aim of employee discipline. In fact, al efforts directed towards the maintenance of discipline must end up with the accomplishment of organizational goals; otherwise the imposition of discipline will be of no use. Developing a Responsive Workplace Organizations utilize discipline to make the employees conform to the standards they have set. This obviously facilitates the employees in avoiding reckless and insubordinate behaviour and keeps them responsive and disciplined. Changing Employee Behaviour Organizations aim at bringing in the desired behaviour among the employees through discipline. The presence of the discipline policy can help the employees check their behaviour against the standards and cause changes in their behaviour, if necessary. For instance, discipline may caution the low performers of the organization and can compel them to alter their behaviour to meet the performance standards. Improving Morale and Motivation Organization attempt to enhance employee motivation and morale through a fair discipline system. When the employees perceive the discipline policy of their organization to be fair and legitimate, they may be willing to work hard to avoid any disciplinary action against them. Similarly, when they see an act of indiscipline getting a fair and quick punishment, they feel proud of their disciplined behaviour. This feeling provides a sense of satisfaction, motivation and commitment to the employees. Eventually, it improves their morale. Exercising Consistency in Action Discipline aims at supplementing the efforts of managers and supervisors to exercise effective control over subordinates. Since the authority to take disciplinary action is normally vested with the supervisors, it evokes fear in the minds of the employees and forces them to comply with the instructions of their supervisors. Ensuring Consistency in Action
However.9. which. They also aim at ensuring consistency in the disciplinary actions of the supervisors in different periods of time. Thus. organization can convince the unions about the fairness of the process and get their continued cooperation in the future.9 TYPES OF DISCIPLINE The general purpose of discipline is to bring about positive changes in an employee‘s performance. in turn. There are many disciplinary systems available for an organization to fulfill the objectives of discipline goals. Discipline issues often cause lot of strain in the unionmanagement relations. organizations can aim at reducing the cost of supervision without compromising on its quality. through objective and transparent disciplinary process. Substituting Personal Supervision Another objective of discipline is to reduce the need for close supervision in the organizations. 10.Organizations strive to ensure consistency in the disciplinary actions of different managers while dealing with acts of indiscipline of similar nature and intensity. Promoting industrial Relations One of the objectives of discipline is to foster good industrial relations in the organization. ii. attendance or behaviour. 10. . an organization may settle for a particular type of discipline. Discipline system and policies develop self-discipline among the employees. through discipline. as well as preventive discipline. which is called self-discipline. eliminate the necessity of closely supervising the performance and behaviour of the employees.1 POSITIVE DISCIPLINE Positive discipline. The two inherent aspects of positive discipline are: Personal responsibility of employees for maintaining discipline. Depending upon its management philosophy. aims at seeking the willing cooperation of employees in observing the discipline code of the organization. and Independent decision making by them to eliminate their unsuitable and undesirable behaviour. In this method. HR policies and other characteristics. the responsibility of the organization is to create a positive environment that gently prompts the employees to comply with the organizational i.
For instance. The employees are reminded about the rules. Besides. effective goal accomplishment and positive image for the organization in the labour market. the management must provide unambiguous instructions to the employees and relevant and timely feedback about the performance and its behaviour expectations. fear is the key to the maintenance of discipline. in this method.m. when performance or behaviour indiscipline is reported against employees. It never seeks the willing cooperation of the employees in ensuring discipline within the organization. For instance. its efforts would certainly pay it rich dividends in the long term.2 NEGATIVE DISCIPLINE It is a traditional form of discipline followed by an orthodox management. improved employee motivation and morale. The benefits of positive discipline are cordiality in labour. is to rededicate and recommit themselves to the job and the organization.management relations.9.defined line of authority Appropriate working conditions Sufficient discipline training Although an organization needs to devote considerable time and resources to developing positive discipline among its employees.code of conduct. the fear of punishment for the acts of indiscipline will be the driving force for the employees to avoiding misconduct. In this method. This form of discipline is also known by names like punitive discipline and enforced discipline. The prime aim of the employees in this method is escaping punishment and not cooperating with the management. The prerequisite for implementing positive discipline are: An excellent communication network A well. when the management threatens the employees with dire consequences if they do not report for duty at 10 a. minimum use of formal authority. Thus.. It also forces them to obey the rules and regulations of the organization.m. and remain till 5 p. remind rather than reprimand‘ is the approach in positive discipline. In the event of indiscipline. their response would be to ensure that they remain in the office during the stipulated office hours but not reach earlier or leave later than that time. the first requirement for them. and the desired changes in behaviour occurs. Besides. employees working under a negative environment view discipline as a restraint on their freedom of behaviour. 10. .
Progressive discipline requires an organization to adopt a step-by-step approach in dealing with the indiscipline problems of an employee.3 PROGRESSIVE DISCIPLINE It is popular form of discipline adopted successfully by many organizations in maintaining discipline among their employees. A progressive disciplining of an employee may begin with the hiring of an employee and can continue through his entire work life in the organization. Low morale and motivation High labour turnover Work-to-rule approach Lack of self-belief 10. this method suggests that the organization begin the disciplinary action process with a modest disciplinary action. The consequences of negative discipline are: Distrust in industrial relations and mutual antagonism. which is the gradually growing and proportionate punishment to the employees. . This method of discipline has found wide acceptance even among the unions. if all the efforts to correct his behaviour fail. Although progressive discipline is similar to positive discipline. Progressive discipline may be defined as any employee discipline system that provide a graduated range of responses to employee performance or conduct problems. then increase the degree of severity gradually and finally end up with the most severe punishment if the successive stages of punishment do not yield the desired change in the behaviour of the employees. the disciplinary process may end up in his dismissal. While dealing with the discipline issues concerning the employees. For instance.The intention here is evading threat of punishment and not extending cooperation or performing to the potential.9. this method suggests that the organization begin the discipline issues concerning the employees. It may even lead to his suspension and ultimate dismissal. it differs on one basic aspect. The extent of punishment depends on the frequency and severity of the performance and behaviour problem and the length of service of the employee.
It facilitates the managers in getting involved in the disciplinary matters without worrying about the prospects of losing the employees‘ friendship. extreme punishments like dismissal are rare as the management provides an adequate number of opportunities to the employees to discipline themselves by changing their behaviour and continue in the job. It provides adequate opportunities to the employees to correct their behaviour and performance.10 CAUSES OF INDISCIPLINE Indiscipline simply means unacceptable behavior of an employee in the organization. this method assumes greater significance from the organizational point of view. It enables the managers to intervene in the disciplinary issues involving the employees at the first available opportunity.SIGNIFICANCE OF PROGRESSIVE DISCIPLINE Since the disciplinary actions for misconduct move from mild to severe punishment gradually. This is because the employees are let off with mild punishments in the initial stages of disciplinary actions. A proper compilation of the several discipline violations indulged in by the employees and the series of actions initiated by the management through the progressive discipline policy can help the management prepare a legally defensible case against the employees in the event of their suspension or dismissal. Progressive discipline helps the management avoid time-consuming and costly litigation because this method rarely resorts to extreme punishment. the serious disciplinary actions are almost always challenged in the court. As a matter of fact. In this method. 10. The unacceptable behaviour may occur in the foem of unsatisfavtoeyr performance or undesirable conduct. the organization may have to incur high staffing cost for finding the right replacement for the separated employee. The important factors responsible for undisciplined behaviour are: Conventional management practices Unfair Treatment Absence of an effective code of conduct . In the event of dismissal or discharge of employees as a result of disciplinary action.
In case of demotion.10 TYPES OF DISCIPLINARY ACTION The outcomes of indiscipline in normal circumstance are disciplinary actions in the form of punishments. the immediate supervisor or manger may demand the suspension of the employee accused of misconduct. Once the investigation is over. These are usually punishments of a temporary nature. Its purpose is to caution the employee against the continuance of the same misconduct in the future. increments or pay hike by blacklisting the employee for specified period of time. Pay Reductions and disciplinary Demotions This is usually more severe than the denial of pay hikes and promotions because the employee loses part of even the existing benefits and privileges hitherto received by him. the . the manger may issue a written warning to the employee. The different type of punishments are normally awarded for different kinds of offences. Oral Reprimand It is an oral warning issued to an employee by a manager for the performance or behavior misconduct reported against that employee. the management may refuse promotions. Promotions and Pay hikes On some occasions.Absence of a proper grievance-handling mechanism Ineffective HR policies and practices Absence of an efficient communication system Negative attitude of the employees and their unions Organizational culture 10. the employee loses social status too in addition to the monetary loss Suspension Depending upon the nature of the misconduct committed by the employee. Written Warning When an oral warning to the employee does not produce the desired result. The written warnings are usually legal documents and may have to be presented in the court at a later stage Denial of Increments.
the grievance is verbally conveyed by the employee to the ______________.suspension may be converted into dismissal or into some other less severe punishment or simply revoked. Positive discipline is also known as ___________ discipline. management 3. In case of dismissal. constituted by members from both the ___________ and _______.the grievance is referred to the arbitrator who takes the final decision. Discharge or Dismissal This is the severest punishment of all. the employee is not entitled to any separation benefits. a) HR representative or the arbitrator b) HR representative or the designated officer c) Supervisor or the arbitrator d) Supervisor or the designated officer 2. Dismissal or discharge must be done in accordance with the relevant provisions of the law. is not able to resolve the matter . In a unionized organization if the grievance committee. a) Government. the employee is eligible for his provident fund and other retirement benefits in the event of his discharge from his job.11 QUIZ Complete all the review questions listed here to test your understanding of the topics and concepts in this chapter 1. Developing mutual respect for each other and for the organization rules and procedures among employees happens when they undertand and believe that these rule and procedures will contribute to the achievement of both organization goals and their personal goals. In this. In contrast. department c) Employees. 10. In the first stage of most grievance redressal procedures. Management b) Union. Government d) Union. employee is permanently removed from service. a) Imposed b) Cooperative c) Enforced .
Attitude towards work ii. and iii b) Only i. iii. Congruence between employee goals and organizational goals iv. Unpleasant relationships with supervisors a) Only i. tardiness. Ensured job security leading to a relaxed approach and lack of interest in job iii. ____________ related problems. iii. ii. and iv . Although he is very efficient. ii. related to misuse of leave facilities. and iv c) Only i. one of the major types of problems encountered in organizational. Sunil Kumar works as a chartered accountant in an MNC.d) None of the above 4. Which of the following could be the reasons for such attendancerelated problems? i. and iv d) i. he is absent from work for at least six to seven days in a month. and absenteeism. ii. a) On the job behaviour b) Attendance c) Dishonesty d) Incongruence 5.
CHAPTER-11 PERFORMANCE APPRAISAL After reading this chapter. Human resource Development is the process by which corporate management stimulates the motivation of employees to perform productivity. Performance appraisal is a part of Performance management. for example. competencies and relative merit and worth for the organization. Factor affecting performance appraisals 4. although it is also applied in labor economics to. The nature and purpose of Performance Appraisal 2. Performance appraisals are widely used in the society. Performance appraisal rates the employees in terms of their performance. Process of Performance appraisal and Methods of Performance Appraisal 3. business sectors or even whole nations. Performance appraisal takes into account the past performance of the employees and focuses on the improvement of the future performance of the employees.1 INTRODUCTIONS -PERFORMANCE APPRAISAL ―Human resources‖ a term used to describe the individuals who comprise the workforce of an organization. you will be able to understand: 1. Definitions: . Therefore organization have to create conditions where skill will and resources the three important ingredients for performance are matched appropriately as depicted below. Performance appraisals of Employees are necessary to understand each employee‘s abilities. Performance appraisal is necessary to measure the performance of the employees and the organization to check the progress towards the desired goals and aims. Rating errors in Performance Appraisal 11.
To provide an opportunity for career counseling. (Nelson:2004) 11.2 PURPOSE OF PERFORMANCE APPRAISAL Purpose of performance appraisal includes elements as follows: 1. or provides the opportunity to discuss resolution of performance deficiencies. Administrative Uses of Performance appraisal Salary Promotion . Career Development This provides an opportunity for discussion of career objectives. Feedback either reinforces performance strengths. employees are encouraged to prepare ratings of their supervisors. (Robert Kreitner:2004) ―Performance Appraisal is a process of systematic evaluating performance and providing feedback upon which performance adjustments can be made:. feedback is encouraged in both directions: as such. To provide constructive feedback to the individual regarding how their performance is seen This provides a structured format for the discussion of performance issues on a regular basis. To assess training needs To plan for career development To assess and develop individual abilities To provide an objective basis on which to base decisions about training and promotion 2. To help in succession planning. and creation of a strategy designed to maximize career potential. Feedback As well. 3.―Performance Appraisal may be defined as evaluating individual job performance as a basis for making objective personnel decisions‖.
To assess future promotion prospects and potential. Organizational Goals To clarify. for the individual. 7. 5.Retention/termination Recognition of performance Layoffs Identification of poor performers 4. Performance History This provides a performance history which is not dependent upon human memory. To set objectives for the next period 6. . Documentation use of Performance appraisal Documentation for HR decisions Helping to meet legal requirements 11. The goal of performance appraisal is to allow the employee the opportunity to progress to their full potential in order to meet the organizational needs and his personal development goals. organizational expectations. This provides an opportunity to view one‘s performance in the context of broader organizational goals. identifying strengths and weaknesses. including compensation decision-making. and which may be useful in the full range of personnel decisions. Job Standards This provides an opportunity for clearer articulation and definition of performance expectations. To review past and present performance.3 OBJECTIVES OF PERFORMANCE APPRAISAL The main objective of performance is to improve the performance of the organization through improved employee performance.
review the job description. 2. 3. leadership grooming opportunities. plan upcoming goals and objectives and develop an individual development . efficiency and commitment. Performance appraisal provides an opportunity to communicate performance feedback. agreement on measurement criteria and organizations expectations of desired performance level brings to transparency to the appraisal process. etc. career development. Some of the Objectives of Performance Appraisal are: 1. job rotations. which in turns facilitates better performance. promotions. This increases the productivity of the individual employees and the organization stands benefited out of improved performance of employees. To increase motivation and productivity Performance appraisal helps employees to set plan work and identify skills in order to achieve them. The foundation of the performance appraisal is improved communication between the employee and the manager. Meritorious employees are rewarded better with increased compensation. true teamwork and maximum performance can be achieved. promotions. and succession planning. and help retain top talents in the organization by satisfying their growth and development needs.Through this process. 4. training and development opportunities. Employee is motivated as there is clarity of what he is required to do in a given period. To retain top talent Performance appraisal helps organization in taking people related decisions such as career planning. Increased clarity brings greater focus on job related activities. To increase commitment Employee‘s involvement in planning of work and identification of skills helps to bring greater self-awareness and increases his commitment to the objectives of performance appraisal activities. To enhance transparency Setting of performance targets /objectives.
training and development. To develop employees Performance appraisal accord an opportunity to develop an employee through the identification of gaps in skills and competencies.plan. To help the management in exercising organizational control. 6. To diagnose the strengths and weaknesses of the individuals so as to identify the training and development needs of the future. suitable training and development programmes can be established for rectifying the gaps/deficiency. Since he is clear of performance goal and requirements. Helps to strengthen the relationship and communication between superior – subordinates and management – employees. selection. 6. 4. . To judge the gap between the actual and the desired performance. This results in personal and professional development of employees. To ensure accountability and ownership Performance appraisal casts high responsibility on the individual employees to accomplish his work objectives effectively. 2. To provide feedback to the employees regarding their past performance. 5. Provide clarity of the expectations and responsibilities of the functions to be performed by the employees. To review the performance of the employees over a given period of time. 9. Once deficiencies in skills and competencies has identified. The brief summary of the objectives is: 1. 7. Provide information to assist in the other personal decisions in the organization. 3. therefore owns the appraisal as a good way to improve his career prospects in his organization. It induces employee‘s to put his heart and head to into improving his performance for which is accountable to his manager. 8. 5. To judge the effectiveness of the other human resource functions of the organization such as recruitment.
11.4 PROCESS OF PERFORMANCE APPRAISAL: 1. ESTABLISHING PERFORMANCE STANDARDS .10.To reduce the grievances of the employees.
4. great care should be taken to describe the standards. the actual performance being less than the desired performance depicting a negative . This step requires setting the criteria to judge the performance of the employees as successful or unsuccessful and the degrees of their contribution to the organizational goals and objectives. COMPARING THE ACTUAL WITH THE DESIRED PERFORMANCE The actual performance is compared with the desired or the standard performance. This stage requires the careful selection of the appropriate techniques of measurement. This will help them to understand their roles and to know what exactly is expected from them. the standards can also be modified at this stage itself according to the relevant feedback from the employees or the evaluators. easily understandable and in measurable terms. MEASURING THE ACTUAL PERFORMANCE The most difficult part of the Performance appraisal process is measuring the actual performance of the employees that is the work done by the employees during the specified period of time. taking care that personal bias does not affect the outcome of the process and providing assistance rather than interfering in an employees work. The standards set should be clear. In case the performance of the employee cannot be measured. 2. The standards should also be communicated to the appraisers or the evaluators and if required. COMMUNICATING THE STANDARDS The employees should be informed and the standards should be clearly explained to them.The first step in the process of performance appraisal is the setting up of the standards which will be used as the base to compare the actual performance of the employees. The comparison tells the deviations in the performance of the employees from the standards set. 3. It is a continuous process which involves monitoring the performance throughout the year. The result can show the actual performance being more than the desired performance or.
The results. or the related HR decisions like rewards. The purpose of the meeting should be to solve the problems faced and motivate the employees to perform better. 6.deviation in the organizational performance. take the required corrective actions. evaluating and analysis of data related to the employees‘ performance. DECISION MAKING The last step of the process is to take decisions which can be taken either to improve the performance of the employees. The focus of this discussion is on communication and listening. 11. transfers etc. The feedback should be given with a positive attitude as this can have an effect on the employees‘ future performance. the problems and the possible solutions are discussed with the aim of problem solving and reaching consensus. promotions. 5. demotions.5 Performance Appraisal Methods: . It includes recalling. DISCUSSING RESULTS The result of the appraisal is communicated and discussed with the employees on one-to-one basis.
Here are some of those things listed below. . Now performance appraisals are used to determine a lot of things with employer. Deciding promotions Determining transfers Deciding of future employment Determine training employees need Finding out skill and competency deficit.Rating Methods Checklists Comparative Methods Straight Ranking Narrative Methods Critical Incidents Behavioral Methods MBO Graphic Rating Scale Paired Comparison Essay BARS Grading Field Review Human Resource Accounting Assessment Centers Forced Distribution Confidential Reports Forced Choice 360 Degree There are many methods can be used when doing performance appraisals. the methods of performance appraisal may be divided into four as depicted in the figure above. Deciding who gets rewards There are various methods of performance appraisal depending on the size and nature of the organization. Broadly speaking.
Another limitation could be that this method is expensive and time consuming. contributions and behaviors.11. The rating scales can also be adapted by including traits that the company considers important for effectiveness on the job. A rating score from the checklist helps the manager in evaluation of the performance of the employee. it becomes difficult for the manager to assemble. Checklists: Another simple type of individual evaluation method is the checklist. A checklist represents. The checklist method has a serious limitation.1 RATING METHODS These methods rely on putting employees on certain pre-defined scale to access their performance. A more recent variation of the checklist method is the weighted list. Under this method. the most common being the quantity and quality of work. Two rating methods are: a. he leaves the item blank. analyze and weigh a number of statements about the employee‘s characteristics. He may assign biased weights to the questions. Graphic rating scale Perhaps the most commonly used method of performance evaluation is the graphic rating scale. is used to evaluate the performance of an employee. the value of each question may be weighted equally or certain questions may be weighted more heavily than others. otherwise. he checks the item. a set of objectives or descriptive statements about the employee and his behavior. Of course. it is also one of the oldest methods of evaluation in use.5. The rater may be biased in distinguishing the positive and negative questions. the checklist method is most frequently used in the employee‘s performance evaluation. A variety of traits may be used in these types of rating devices. In spite of these limitations. as shown below. b. Finally. A model of a graphic rating scale is given below. If the rater believes strongly that the employee possesses a particular listed trait. . a printed form. in its simplest form. The following are some of the sample questions in the checklist. Under this.
this method compares each employee with all others in the group. good. resulting in an ordering of employees in relation to one another. Rankings often result in overall assessments of employees. b. Ranking Ranking methods compare one employee to another. The distribution in general is as under: 20% of employees = excellent performers 60 % of employees = average performers 20 % of employees = poor performers . one at a time. The different grades of performance are determined in advance such as excellent. satisfactory and poor.11. Forced Distribution: In this method. very good. Paired Comparison: A better technique of comparison than the straight ranking method. Grading: The manager is given a list of categories to be assessed. c. This method forces the appraisers to spread their employee evaluations in a prescribed distribution. After all the comparisons on the basis of the overall comparisons. the employees are appraised according to the pattern of a normal curve (bell shaped) in order to check tendency of appraisers to rate most of the employees around high points. the employees are given the final rankings. This is done by selecting a grade which matches the employee's performance.5.2COMPARISON METHOD These methods rely of relative comparison and ranking of employee performance based on certain criteria or characteristics of performance. d. Five comparative methods are: a. rather than in specific judgments about a number of job components.
raters and ratees do not readily accept this method. the evaluator rates the employee on the basis of critical events and how the employee behaved during those incidents. In this the rater is asked to choose from the among groups of statements those which best fir the individual being rated and those which least fit him. Forced Choice This approach is known as the forced choice method because the rater is forced to select statements. The drawback of this method is that the supervisor has to note down the critical incidents and the employee behavior as and when they occur. It includes both negative and positive points.3 NARRATIVE METHOD These methods rely on written statements to indicate the performance level of employees and involve great deal of linguistic skills of the appraisal designer. Essay Appraisal This traditional form of appraisal. For example. The disadvantage is that the statements may not be properly framed – they may not be precisely descriptive of the ratee‘s traits. The description is an evaluation of the performance of any individual based on the facts and often includes examples and evidences to support the information. especially in small groups or when group members are all of high ability. Critical incidents In this method of performance appraisal. the forced distribution approach dictates that a certain number be placed at the bottom of a graded continuum. e. The advantage of this method is the absence of personal bias in rating. . For this reason.Forced distribution is primarily used to eliminate rating errors such as leniency and central tendency. also known as ―Free Form method‖ involves a description of the performance of an employee by his superior. but the method itself can cause rating errors because it forces discriminations between employees even where job performance is quite similar.5. which are readymade. b. A major drawback of the method is the inseparability of the bias of the evaluator. 11. even if all employees in a unit are doing a good job. Four narrative methods are: a.
managers.c.4 Behavioural Method Behavioural methods of performance appraisal are based on the following propositions: i) ii) Evaluations are not conducted for raises. A major drawback of this method is that it is a very time consuming method. 11. understand their objectives to be achieved and thus help in the achievement of organizational as well as personal goals. But this method helps to reduce the superiors‘ personal bias.5. a senior member of the HR department or a training officer discusses and interviews the supervisors to evaluate and rate their respective subordinates. The drawback here is that the employee does not get the chance to make improvements on his performance as this report is kept confidential. he talks of the highs and lows of the employee's performance. In these reports. or bonuses instead for development and communication Most important aspect in all is multilateral communication between employees. and others. rather than one-way communication. Involving employees in the whole process of goal setting and increasing employee empowerment increases employee job satisfaction and commitment. The focus is on future rather than on past. promotions. Confidential Reports Manager prepares confidential reports for each subordinate who reports to him. Field review In this method. Goals and standards are set for the performance for the future with periodic reviews and feedback. Frequent reviews and interactions between superiors and subordinates helps . Six behavioural methods are: a. Management By Objective The principle behind Management by Objectives (MBO) is to create empowered employees who have clarity of the roles and responsibilities expected from them. d.
The following are the common features of all assessment centers: The final results is based on the pass/fail criteria . making it a non cooperative environment. The cost of employees include all the expenses incurred on them like their compensation. recruitment and selection costs. Assessment centers simulate the employee‘s on the job environment and facilitate the assessment of their on the job performance. This scale uses a job analysis to determine what it takes to do the job. In this method the performance of the employees is judged in terms of cost and contribution of the employees.It measures past performance and not present performance. c. These scales are very time consuming and expensive to do. instead of personality factors like the trait rating scale. Behavioral anchored rating scales: (BARS) Basically means that it rates performance factors. d. Human resource Accounting Human resource accounting method tries to find the relative worth of these assets in the terms of money. after it does that it rates the employee against that and determines how well you do.to maintain harmonious relationships within the enterprise and also solve many problems faced during the period. Ideally. Assessment Centers Technique Assessment centre refers to a method to objectively observe and assess the people in action by experts or HR professionals with the help of various assessment tools and instruments. does not motivate people. b. induction and training costs etc whereas their contribution includes the total value added (in monetary terms). The negatives with this way of doing it are that it makes the employees try to outdo all the other employees. the contribution of the employees should be greater than the cost incurred on them. The difference between the cost and the contribution will be the performance of the employees.
in which participants respond to a series of administrative problems that simulate typical managerial tasks Leaderless group discussions. 360 Degree Performance Appraisals 360 degree feedback. in which participants typically are questioned about how they have handled particular work situations in the past and how they would respond to specific work situations in the future Management games. e. 360 degree appraisal has four integral components: 1. his achievements. The results are based on the assessment of the assessors with less emphasis on self-assessment Immediate review or feedback are not provided to the employees. Each session lasts from 1 to 5 days. Subordinate‘s appraisal 4. and judge his own performance. in which participants must work cooperatively to meet mental or physical challenges. . also known as 'multi-rater feedback'. in which participants are involved in a simulation of a situation that could occur on the job Interviews. The main tools used in assessment center are: In-basket exercises. b. Self appraisal gives a chance to the employee to look at his/her strengths and weaknesses. Superior‘s appraisal 3. Peer appraisal a.All the activities are carried out to fill the targeted job. Self appraisal 2. is the most comprehensive appraisal where the feedback about the employees‘ performance comes from all the sources that come in contact with the employee on his job. Superior‘s appraisal forms the traditional part of the 360 degree performance appraisal where the employees‘ responsibilities and actual performance is rated by the superior. in which a group of participants without an assigned leader must arrive at a group solution to a specified problem within a given time period Role-plays.
f. leadership qualities etc. improve and learn in order to support success with the critical operations and processes defined in the Internal Process Perspective. the correct feedback given by peers can help to find employees‘ abilities to work in a team. Peer appraisal. Components of balanced scorecard: Learning & Growth Perspective: This perspective focuses on how an organisation is improving its ability to innovate. Strategic review or analysis of the organizational capabilities and performance. In the modern management philosophy. Balanced scorecard focuses on the measures that drive performance. co-operation and sensitivity towards others. This may include employee training and corporate culture attitudes. superior‘s ability to delegate the work. It guides users in determining the critical success factors and performance indicators. The benefits of the balanced scorecard approach in measuring performance are: Gives the complete picture of the employee as well as the organizational performance. Subordinates appraisal gives a chance to judge the employee on the parameters like communication and motivating abilities. it is increasingly becoming important for the organizations to develop a culture of learning where the employees constantly learn and share the knowledge to facilitate growth. Integrating and directing the performance and efforts from the lowest levels in the organization to achieve excellent overall performance. Balanced Scorecard An approach given by Kaplan and Norton provides a framework of various measures to ensure the complete and balanced view of the performance of the employees. Focusing the whole organization on the few key things needed to create breakthrough performance.c. The onthe-job training and mentoring is also an essential component of the perspective. d. also known as internal customers. Business Process Perspective: This component focuses on what an organisation must be doing well to meet the customer needs defined in the Customer .
. Knowledge and skills: For an employee to work and function well in an organization. Family: Usually all employees in any organization will have family problems at one point in their life. These problems at home may also affect their work. to achieve the mission. measures.Perspective. 1. 11. eventually activities are therefore planned to implement strategy regarding the customer satisfaction. therefore. Another key consideration is the prospects of sustainability of funding for the initiative required to implement the strategy. There are many factors that can affect the performance of employees in an organization. the timely and accurately presented funding data is critical and the sources of funding and budgeting must be done. For any strategic choice.. The project will identify the root of employee behavior and how it relates to low productivity so that you can establish strategies for improving employee performance. Some people may have frequent problems. It also lets managers know how well their business is running and how well the internal processes are designed to meet the objectives. These problems can affect the work adversely.6 THE FACTORS AFFECTING PERFORMANCE: There are a number of factors which may be affecting the employees‘ performance. Customer Perspective: This area focuses on what must be done and what's most important. It is the responsibility of the administrators of the organization to create a good working environment for the employees. targets and. Each employee may have different effect from different things at workplace. This component of the Balanced Scorecard therefore looks at the projects from a financial perspective and discusses financial considerations. Their attitude and behavior can play a vital role in their performance. Financial Perspective: The importance of financial considerations is paramount in most situations and in most organizations. The employee must have proper attitude with the skills necessary to be efficient in work. the employee should have adequate knowledge and skills. from the customer's perspective. 2. The objectives.
The employers should be able to show adequate compassion on these workers to help the worker function effectively. Otherwise. 5. Ethics: Work ethics is very important for the performance of an employee. Health: Employees must be physically and mentally healthy to perform better in an organization. 3. 7. People who tend to be aggressive by nature may find conflicts in the situation. it can lead to conflicts and non performance. This is especially true when the organization deals with people. The work situation and environment should be adequately modified to help the employees have better working conditions. Good performance may be affected. Workplace: Some people are highly sensitive to the environment and also climate. 6. 11. it can lead to poor performance and can also demotivate the other employees. Employee effectiveness is also lost if there is no proper guidance or planning in an organization. In course of time. Support from superiors: Superiors have to understand the needs of the employees for the employee to work efficiently.7 RATING ERRORS IN PERFORMANCE APPRAISAL . Adequate health cover as part of the employee benefits will help a little in improving the efficiency of the person at work. 8. Sometimes frequent fault finding of the employees work may also lead to deficiency in work. Adequate training is necessary to help the employee to cope and be able to perform better. Equipments may change or the type of work can change in an organization. These should be conducive for work. This can make the employee unable to adapt. 4. not because of lack of ability or interest. but by conflict of values. otherwise even good performers can also become poor performers. Good morals and ethics can help a person to improve their performance. Adaptability: Some employees may not be able to cope with the changes that occur at work. Chronic illnesses in the family can also affect the performance of the employee. Social values: The type of work in an organization may also involve a sense of compassion.
This significant difference in performance or employee competencies could lead the supervisor to rating the second individual as an average performer Personal Bias Personal beliefs. showing a recency bias & we remember what we see either first or last Contrast Effect When supervisors rate employees one after another. E. sex. that women are emotional & men are rational. without taking an objective look at her performance in these areas Horn Effect Rating an employee unsatisfactory in one quality. experiences. or assuming that certain class of people are not suitable to perform a specific job or function etc. but for some inadvertent reasons had faced performance issues in the last weeks or month may at times get a poor appraisal from the supervisor. etc.People do have first impression & memory errors. religion.g. E. If you believe for instance.g. age.Let's suppose that a supervisor has just rated an outstanding performer & is now evaluating an individual who is also a good performer but there seems to be a contrasting difference b/w the abilities & output of the two individuals. Then assuming the individual to be an overall high performer based on the quality of her work output. ethnicity. .g.Bias against a race. preferences and lack of understanding about a person. rating of an exceptional performer or a very poor performer could affect the subsequent ratings of other individuals. A manager rates a worker very high on quality because of her immaculate attention to details and lack of defects in her work. E. class or a phenomenon can lead to an unfair evaluation. the manager rates her very high on efficiency. punctuality. . assumptions. .g. then chances are that you would not employ a female . which in turn influences the rater to give a similar rating or a lower than deserved rating on other qualities Recency Bias Occurs when recent events tend to overshadow the overall performance. responsibility. Halo Effect Occurs when a rater attaches too much significance to a single factor of performance and gives similar ratings on other performance elements. attitudes. E. Thus a person who has worked very hard & excelled throughout the year.
Similarly. A major reason for this error is to avoid conflict. First impression The tendency of a rater to make an initial favorable or unfavorable judgment about an employee Same As Me Rating an employee higher than deserved because the person has qualities or characteristics similar to those of the rater (or similar to those held in high esteem) Different From Me Rating an employee lower than deserved because the person has qualities or characteristics dissimilar to the rater (or similar to those held in low esteem) Spillover Effect Allowing past performance appraisal ratings to unjustly influence current ratings Status Effect Over-rating employees in higher-level jobs or jobs held in high esteem & underrating employees in lower level jobs or jobs held in low esteem Central Tendency Providing a rating of average or around the midpoint for all qualities.worker for a role that involves making objective decisions. Since many employees do perform somewhere around average. being overly generous in rating performance qualities. This is probably the most common form of rating error. that young workers are faster & more efficient than old workers would make it more probable to give a higher efficiency rating to a younger worker than an old worker. it is an easily rationalized escape from making a more meaningful appraisal Strict Rating Rating consistently lower than the expected norm or average. It provides a path of least resistance . being constantly harsh in rating performance qualities Lenient Rating Rating consistently higher than the expected norm or average.
It is also easy to put too much credence in what others have told you about this employee. and finding suitable employees to do the job. a) Evaluating the qualifications of an employee and rewarding him/her suitability b) Evaluating the performance of an employee and communicating the results of the evaluation to him/her for the purpose of rewarding or developing the employee c) Detailing the various aspects of a job like the tasks involved. It is a good reflection on the good mgr. the responsibilities of the job and the deliverables. Stereotyping If we consider a certain group of people as hard working. We look for performance that supports our beliefs & disregard performance that is contrary to our beliefs.8 QUIZ Complete all the review questions listed here to test your understanding of the topics and concepts in this chapter 1. including the responsibilities attached to the job and the abilities required to perform the job successfully . Performance Appraisal can be defined as the process of ______________. At the same time. mgrs may not expect success from an employee that someone else selected. even if they are not Glass Ceiling Effect The supervisor may sometimes decide when an employee has reached their peak performance & stop challenging the employee to continue to improve Self-fulfilling Prophecy Managers who hire employees usually want them to succeed. then we may tend to rate anyone in that group as being highly productive. d) Determining and recording all the pertinent information about specific job. This is also called the ―Pygmalian Effect‖ 11.
There are various traditional and modern methods of performance appraisal. his internal/external customers. In the ____________ method of performance appraisal. In _____________ performance appraisal. the employee‘s performance is evaluated by his supervisor.2. the appraiser makes a note of all the significant incidents that reflect the performance or behaviour of the employee during the appraisal period a) Critical Incident b) Significant happening c) Balanced Scorecard d) Memorable Performance 6. . MBO is also called the goal-setting approach. How are the goals set in the Management by Objective method? a) Goals are developed by the employees himself/herself b) Goals are developed with the active participation of the employee and his/her supervisor. his internal/external suppliers and his subordinates. his peers . Paired comparison ranking method is more suitable in situations where________ a) A large number of employees have to be appraised b) The employees to be appraised are shop floor workers c) Only a few employees have to appraised d) The organization structure is highly complex 7. Peer evaluation is a very sensitive area as it may lead to false and unhealthy appraisals due to _____________. c) Goals are set by the employee‘s immediate supervisor d) Goals are set by the headquarters of the organization 5. Which of the following is not a traditional method of appraisal? a) Checklist appraisal b) Management by Objective c) Team appraisal d) Essay Appraisal 4. a) Competition among supervisors b) Competition between supervisors c) Competition among peers d) None of the above 3.
a good performance appraisal system serves many other purposes. the leniency effect refers to ______________ a) The situation when an appraiser allows a single characteristics of an appraisee to dominate his judgment of employee performance b) The tendency of an appraiser to rate most of the appraisees in the middle of the performance scale c) The situation when the appraiser tends to give high ratings and only positive feedback to an appraise irrespective of his/her performance d) Judging an appraisee based on the group to which he belongs and appraisers perception of the group.Apart from evaluating the performance of the employees for rewards/punishments and development. and other career planning activities c) Helping in succession planning d) All of the above .a) b) c) d) Total 180 degree All round 360 degree 8. In the context of performance appraisals. 10. In the ______________ method of performance appraisal. These include: a) Determining the training and development needs of the employees b) Forming the basis of transfers. the rater responds ‗yes‘ or ‗No‘ to a set of questions which assess the employee‘s performance and behavior a) Ranking b) Checklist c) Alternation d) Paired Comparison 9. promotions.
Jr . once the database is created.CHAPTER-12 HUMAN RESOURCE INFORMATION SYSTEM After reading this chapter.‖ -K. maintenance becomes a much easier task provided data security and privacy of employees can be safeguarded.E. Many personnel activities and much effort by personnel professionals are devoted to obtain and refine department‘s data base. and organization unit characteristics. and validating data needed by an organization about its human resources. you will be able to understand: 1. Information requirements may include: Duties and responsibilities of every job in the organization Skills possessed by every employee Organization‘s future human resource needs Current productivity of human resources Identification of training needs Acquisition. storing. Benefits and limitations of HRIS 12. storage and retrieval of information present a significant challenge to the management. ―HRIS is defined as systematic procedure for collecting. maintaining.A. retrieving. personnel activities. Kovach and C.1 INTRODUCTION – HUMAN RESOURCE INFORMATION SYSTEM Human resource departments. Meaning and objectives Human Resource Information System 2. However. Steps in implementing HRIS 4. Cathcart. The quality of personnel management departments contribution largely depends upon the quality of information held by it. Application of Human Resource Information System 3.
decision making. 12 . with ad hoc enquiries being satisfied by a report writer. The goal of HRIS is to merge the different parts of human resources. A number of standard reports. and for statutory obligation. salary review reports and employee profiles could be used to facilitate the functions described in succeeding paragraphs. HR departments used to share hardware and files with other departments. A HR information system should be designed around a database consisting of employees and position records. Information is needed for internal control. organizing. Providing a basis for planning.2 OBJECTIVE OF HUMAN RESOURCE INFORMATION SYSTEM The primary purpose of an HRIS is the application of technology for enhancing the efficiency of human resource management. labor productivity. feedback and corrective actions. absence reports. there is a broad- . HRIS is utilized basically for the following four process: Storing information and data for each individual employee for future reference. The access to the database could be in batch mode or through online transactions. the applications and utility of an HRIS increased manifold. controlling and a host of other human resource function. and granting leave. These system came to be known as human resource information systems. companies began to develop information system devoted exclusively to human resource applications. Originally. and benefit management into a less capital-intensive system than the mainframes used to manage activities in the past. Supplying data and submitting returns to government and other statutory agencies. Later. As the years progressed. including payroll. such as age analysis. Meeting daily transactional requirements such as marking present/ absent. and now.System which seeks to merge the activities associated with human resource management (HRM) and information technology (IT) into one common database through the use of enterprise resource planning (ERP) software.
based and self-contained HRIS available with numerous rich features. The presentday advanced HRIS can do several more functions with the features and options available in it. The objectives of an HRIS are: To enhance the ability of human resource management to leverage an absorb new and emerging opportunities and challenges in the business horizons To ensure efficient collection, storage and distribution of HR related information in a paper less work environment To create a HR information hub for the whole organization this facilitates effective people to people and people to information contacts. To establish an integrated system for achieving an efficient and purposeful integration of various human resource functions and effective deployment of strategic human resources To facilitate faster processing of information and more effective decision making, to make the optimum use of the available human resources To enable the HR managers to devote more time to strategic issues by relieving then from routine operations through the employee self service system. The ESS in the HRIS lets the employees have direct access to select information without disturbing the HR manager To facilitate employees direct and online access to information on training, payroll and relevant matters. To maximize the accuracy, reliability and validity of workforce records and eliminate the cost and wastages associated with the manual maintenance of HR records
12.3 APPLICATIONS OF HRIS
Some of the applications which could be computerized and the nature/ type of information that can be recorded and stored are described below. 1. Personnel administration: It will encompass information about each employee, such as name, address, date of birth, date of joining the organization, and information about next of kin and family. The facility should allow the user to maintain a number of address records such as permanent home address, local postal address, and the address of next of kin. 2. Salary administration: Salary review procedures are an important function of the human resources department. A good human resource information system must be able to perform ‗what if‘ analysis and present the proposed increases in a report suitable for distribution to various departments. The report should give the details of present salary, last increase, and the proposed increase. A global update feature which will require a minimum of operator intervention should be available to effect pay increase for employees. 3. Leave/absence recording: An essential requirement of HRIS is to provide a comprehensive and accurate method of controlling leave/absences. A fundamental aspect of leave management is to maintain a complete leave history for each employee with the ability to increase entitlement according to leave rules. Every employee can be issued with an identity card with an employee token number coded on it. The identity card of the employee entering/ leaving the gate will be swiped through and timing loggedin/logged-out. This will avoid manual effort in recording data, and calculating wages for employees with any possibility of errors by oversight/ malpractice.
4. Skill inventory: Human resource information system is used to record acquired skills and monitor a skill database at both employee and organizational level. This will provide the opportunity to identify employees with the necessary skills for certain positions or job functions.
5. Medical History: The HRIS may be used to record occupational health data required for industrial safety purposes, accident monitoring, exposure to potentially hazardous materials, and so on. For example, hearing loss in certain work areas may be monitored using audiometric tests and results recorded on HRIS. The records of periodical medical examinations may also be maintained. 6. Accident monitoring: The system should record the details of the accidents for the injured employees. This can be used to highlight accident-prone areas or accident prone times within the organization.
7. Performance appraisal: The system should record individual employee performance appraisal data such as the due date of the appraisal, scores for each performance criteria, potential for promotion, and other information to form a comprehensive overview of each employee. The textual data relating to appraisals can be retained in paper form and can be combined with the overview obtained from the human resource information system for training transfer and promotion purpose. 8. Training and development: The system should consider the training and development needs of employees, with the ability to record and enquire on courses completed, those underway, and any projected courses. This will enable any gaps in training to be identified and also allow training costs to be monitored at the organizational level. The system could also be used for recording the details of training imparted to various employees. 9. HR Planning: An organization hires people because it has a need to fill a position to ensure that it continues to operate efficiently and within the budget restraints. Therefore, a fundamental aspect of a HRIS should be to record details of the organizational requirements in terms of positions. A HRIS can be used to connect employees to required positions and keep track of their movements. This philosophy provides the user with a means of identifying vacancies and establishing staff numbers, using either reports or on line enquires. A logical progression path and the steps required for
advancement can be identified by HRIS after which the individual progress can be monitored. 10.Recruitment: An essential function of any personnel department is recruitment. Recording details of recruitment activity such as the cost and method of recruitment, and the time taken to fill the position can be used to provide a picture of the cost of recruitment in terms of time as well as rupee value. 11.Career Planning: HRIS could record projected positional moves. The system must be capable of providing succession plans to identify which employees have been earmarked for which positions. 12.Collective bargaining: A computer terminal can be positioned in the conference room and linked to the main database. This will expedite negotiations by readily providing up to date data and also facilitating ‗what if‘ analysis. This will provide the means for discussions based on facts and figures and not feelings and fictions. The system can be also be made accessible through telephone lines and modems to all employees to fire personnel queries.
12.4 NECESSARY CAPABILITIES OF A HRIS: INPUT FUNCTION: The input function provides the capabilities needed to get the human resources information into HRIS. Some of the first things must be established that are the procedures and processes required to gather the necessary data. In other words, where, when, and how will the data collected? After collection, data must be entered into the system after codification. Once the data has been fed, it must be validated to ensure that it is correct. The system should have the capability of easily updating and changing the validation table.
these should be incorporated into the system. As changes occur in human resource information.Database Input activities Data collection Procedure Entry Edit Validation Acceptable data to data maintenance function Message table Acceptance or error notification Edit/validation criteria Edit/validation table values Direct user access DATA MAINTENANCE FUNCTION: The data maintenance function is responsible for the actual updating of the data stored in the storage devices. The components of data maintenance function are shown Data maintenance activities Update Create Derive Database . it is often desirable to maintain the old data for posterity. As new data is brought into the system.
The components of output report function are shown. Disk Turn around reports Output Activities Output Request procedures Procedures Select Process Report Output dissemination Ad hoc reporting Report library Data .Transaction from function Input function to output Reports OUTPUT FUNCTION: The output function of an HRIS is the most familiar one because the majority of HRIS users are not involved with collecting. The demands on the output function are the major factors that influence the particular type of software to be used. Most human resource information system consists of selecting a segment of the total population and providing a report containing specific information regarding the selected population and / or the calculation of results. editing/validating and updating data. but they are concerned with the information and reports produced by the system.
Inception of idea: Idea must originate somewhere. Contract negotiations: The contract stipulating the price delivery. Testing the system: Purpose of the testing is to verify output of HRIS and make sure that it is doing what it is supposed to do. The originator should make a preliminary report justifying the need for an HRIS. 3. the project team should audit the performance of HRIS and if required. Training: Project team members may first be trained to use the system and then they could train all users from other departments.12. 4. 9. such as increased accuracy and fewer errors.Maintenance: It normally takes several months for the HR people to get acquainted with HRIS 11. corrective actions should be taken. This involves discussions with help in making a decision of going to the ‗off the shelf‘ package or to develop the system internally. often some additional errors surfaces during the start up. Tailoring the system: It involves making changes to the system to best fit the organizational needs. 6. 7. . 5.5 STEPS IN IMPLEMENTING AN HRIS The following steps should be followed in setting up an HRIS 1.Audit: After a year or so. service maintenance. Collecting data: Data is collected and fed into the system. Vendor analysis: The purpose of this step is to determine what hardware and software are available that will best meet the organizations needs at the least price. All reports need to be critically analyzed. The most critical part of this step is to clearly illustrate how an HRIS can assist management in making certain decisions. It should carry out a cost benefit analysis of the HRIS in terms of labour and material as also the intangible savings. This is a difficult task. training to organization employees etc may be negotiated. Feasibility study: The present system should be studied to highlight the problem areas and the likely benefit of an HRIS. 10. These need to be sorted out. 8. Starting up: Even after testing. vendors responsibilities with regard to installation. 2.
For instance. retrieve and distribute large volumes of data within the shortest possible time. which is requiring cost to the organization. which is very difficult to accomplish in any manual operation. An HRIS can handle large data. manipulate. It is certainly unmatched in analysis complex. automating the HR processes. This requires reconciliation with high speed and great accuracy. the labour cost. it prevents duplication in the employees. Reduction in labour cost An HRIS has the ability to reduce the labour requirement in the HR department significantly. is kept down. Since there is a complete visibility in all the activities performed by the employees. voluminous and heterogeneous data and in guiding their interaction and reporting.6 BENEFITS OF HRIS: Effective use of Human resources The chief benefit of an HRIS is the optimum and strategic use of human resources in an organization. a timely decision enables the organization to capitalize quickly on the opportunities rising in the business environment. Better Supervision and Control over Human Resources . Faster and effective HR Decisions Since the decision support system of an HRIS is capable of generating as many alternatives decisions as possible for solving problem.12. When there is a decrease in the labour requirement. Ability to manage voluminous Data The inherent ability of an HRIS is its capacity to store. lowers the time-to-hire and cost-per-hire considerably. Certainly. it prevents duplication in the employee efforts by tracking people as they move through the system. the managers can make the best decisions quickly and precisely. like hiring through the applicant tracking system.
Email. It removes the need for the users to be within the premisies to have access to the information available in the HRIS. Anywhere Access HRIS enables its users to have anytime. Anytime. They can use password and other authorization requirements to prevent any unauthorized access to valuable and sensitivity information about the employees. work scheduling. anywhere access with multiple channels for task performance and reporting. Optimum Security and Confidentiality Preserving the security and confidentiality of the employee data is a major problem for many organizations. window forms. Meeting the future challenges and Changes of HRM . etc. Better Statutory Compliances Since all statutory provisions are usually incorporated in an HRIS. HRIS enables HR managers to perform from the top levels of the management by involving themselves in strategic decision making process. This is because all the activities of the employees are monitored round the clock on a real time basis through HRIS. SMS and voice are some of the forms used prominently for accessing an HRIS in normal circumstances. it ensures that these provisions are strictly adhered to. it may invite legal troubles for the organization. Better Focus on Strategic Activities by Managers The automation of HR mangers‘ routine administrative activities like attendance tracking.The effectiveness of supervision and control exercised by the managers over the employees is certainly superior in an HRIS environment as compared to that in a manual environment. web. This can be completely avoided when employees perform through the HRIS. They can keep their employee‘s record safer through an HRIS by limiting access to such information.. allows them to devote more time to strategic planning tasks. When employees overlook any of the regulatory provisions even unintentionally while performing HR activities.
Being key to the employee productivity. Human intervention will always be necessary. Producing information that is of quality to the users requires an investment in time. Conclusion: Information is a vital ingredient to management. timely and relevant information is necessary for decision making.The role of HR managers has received an increased status in organization when compared to earlier years. It can be threatening and inconvenient to those who are not comfortable with computers. information is . the HR mangers should be prepared to perform more complex administrative operations in future for which they should inevitably depend on the sophisticated HRIS. the system is operated in batch mode with the records being updated once a week. there is an urgent need for large scale computer literacy. Thus. In many a situation. has many benefits. Some of them are described below. Computers cannot substitute human being. and corporate excellence. Thus. It can be expensive in terms of finance and manpower requirements. For computerized information to be useful at all levels. competitive strength. 12 . described earlier. The garbage-in and garbage-out (GIGO) is the key expression in any computerized system. Accurate. The quality of response is dependent upon the accuracy of data input and queries fired. it also has many problems which need to be addressed to before it can really be useful.7 LIMITATIONS OF HRIS While the computerized HRIS. the state information is as good as no information. Online facility in multi user environment needs to be developed so that the reports generated are not of phase with the realities. effort and communication on the part of HRIS managers. Computers can at best aid the human effort. Often the personnel designing HRIS do not have a through understanding of what constitutes quality information for the users. the user managers do not get exactly the reports which they want. In many organizations.
being recognized as the fifth organizational resource. Which of the following is not an advantage of the Human Resource Information System? a) A reduction in labour cost b) The ability to manage voluminous data c) Better supervision and control over human resources d) None of the above 4. This is why computerized HRIS is being increasingly used. a) Management Information System b) Decision Support System c) Electronic data processing d) None of the above 2.8 QUIZ Complete all the review questions listed here to test your understanding of the topics and concepts in this chapter 1. 12. Which of the following is not normally an essential condition for an effective HRIS? a) Ensuring clarity of HRIS goals b) Strengthening the infrastructure and other supporting systems c) Changing the HR manager d) Sustained enhancement of the HRIS capabilities . A well designed and comprehensive HRIS provides the needed information within the shortest period and at reduced cost. The simulation of a situation is the uniqueness of the _______ model. payroll preparation and application tracking are some of the activities carried out at the ____________ level. a) Management Information System b) Decision support system c) Electronic data processing d) None of the above 3. The automation of attendance keeping.
Which of the following is/are the sub-system(s) of HRIS? a) Position control and budgeting system b) Compensation Management system c) Performance management system d) All of the above .5.
3. 10. 8. 9. 10. 7. 8. 5. 5. 3. 9. c b d b c d c c b d b a Chapter. 9. 3. 5. 7. 8. 6. 6. 2. b a a c d c a c b b Chapter 2 1. 7. 6. 4. 4. 11. 10. 2.KEY TO END CHAPTER QUIZES Chapter 1 1. 4.4 . 12. c b c a b d a c c d Chapter 3 1. 2.
5. 2. 6. 9. 5. c 2. 6. 3. 5. d c b b c d a b a a Chapter 6 1. 4. 8. 4. b a d a c b Chapter 8 1. 10. c 3. d . 9. 6. d b c d b Chapter -5 1. 2. 2. 7. 7. 3. 8. b b c a d c c d c c Chapter 7 1. 3.1. 3. 2. 4. 4. 10. 5.
2. 5. 4. 3. 3. 6. 7. 2. 10. 5. 5.4. c b d c d . 4. 5. 10. 7. 9. 8. 3. 4. b c c b a c d d c d Chapter 12 1. 9. 3. d d b b b Chapter 11 1. 4. 2. 5. 8. 6. b a d a a a a Chapter 9 1. 2. b d a a b Chapter 10 1.
2006 4. S. Human Resource Development. Tata McGraw-Hill. 2006 3.p and Venkatesh D. Durai Pravin. Aswathappa k. 2006 5. Human resorce Management . Jyothi. Ane Books India. Deb Tapomoy. Pearson Education. 2008 . Huam Resource management. 2010 2. N. Managing Human Resources Personnel Management in Indian enterprises. oxford university press. Human Resource Management.. Dwivedi R.References 1. galgotia publishing Company.