P. 1
27271411-HRM-IGNOU

27271411-HRM-IGNOU

|Views: 96|Likes:
Published by ratish kakkad
imp
imp

More info:

Categories:Types, Business/Law
Published by: ratish kakkad on Jul 15, 2013
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as PDF, TXT or read online from Scribd
See more
See less

11/16/2015

pdf

text

original

UNIT 1

THE CHANGING SOCIAL CONTEXT AND EMERGING ISSUES

The Changing Social Context and Emerging Issues

Objectives
After completion of the unit, you should be able to:
l l l l

understand the meaning and concept of HRM; describe the emerging scenario of HRM; discuss the challenges of HRM; and explain the HRM position in India.

Structure
1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 Introduction Meaning of Human Resource Management A New Mandate for Human Resources Why HRM Matters Now More than Ever The Changing Role of HRM Managing Human Resources in the Emerging Scenario Managing Talent : The New ‘AVATAR’of HR Manager HRM in India Faddism in Western Management and its Implications for Indian Managers

1.10 Guidelines for Better HRM 1.11 Summary 1.12 Self-Assessment Questions 1.13 Further Readings Appendix 1 : Case Study

1.1

INTRODUCTION

By transformation of economic environment, the information explosion, advances in technology and the intensly competitive global and domestic markets have created enormous pressure on organisation to change or perish. Against this challenging scenario, by choice or default a new era of human resource management practices and philosophy is emerging and assuming significance in modern organisations. This unit aims at discussing the emerging scenario of human resource management in detail and also the position of HRM in India.

1.2 MEANING OF HUMAN RESOURCE MANAGEMENT
Human Resource Management (HRM) is a process of bringing people and organizations together so that the goals of each are met. It is that part of the management process which is concerned with the management of human resources in an organization. It tries to secure the best from people by winning their wholehearted cooperation. In short, it may be defined as the art of procuring, developing and maintaining competent workforce to achieve the goals of an organization in an effective and efficient manner.

5

Human Resource Management: Context, Concept and Doundaries

According to Invancevich and Glueck, “HRM is concerned with the most effective use of people to achieve organizational and individual goals. It is a way of managing people at work, so that they give their best to the organization.”

1.3 A NEW MANDATE FOR HUMAN RESOURCES
Should we do away with HR? In recent years, a number of people who study and write about business – along with many who run businesses – have been debating that question. The debate arises out of serious and widespread doubts about HR’s contribution to organizational performance. It is often ineffective, incompetent and costly, in a phrase, it is value sapping. Indeed, if HR were to remain configured as it is today in many companies, the competitive forces that managers face today and will continue to confront in the future demand organizational excellence. The efforts to achieve such excellence – through a focus on learning, quality, teamwork and reengineering – are driven by the way organizations get things done and how they treat their people. Those are fundamental HR issues. Create an entirely new role and agenda for the field that focuses it not on traditional HR activities, such as staffing and compensation, but on outcomes HR should not be defined by what it does but by what it delivers – results that enrich the organization’s value to customers, investors, and employees. More specifically, HR can help to deliver organizational excellence in the following four ways:
l

First, HR should become partner with senior and line managers in strategy execution, helping to move planning form the conference room to the marketplace. Second, it should become an expert in the way work is organized and executed, delivering administrative efficiency to ensure that costs are reduced while quality is maintained. Third, it should become a champion for employees, vigorously representing their concerns to senior management and at the same time working to increase employee contribution; that is employees’ commitment to the organization and their ability to deliver results. And finally, HR should become an agent of continuous transformation, shaping processes and a culture that together improve an organization’s capacity for change.

l

l

l

1.4 WHY HRM MATTERS NOW MORE THAN EVER
Regardless of their industry, size or location, companies today face five critical business challenges. Collectively, these challenges require organizations to build new capabilities. Who is currently responsible for developing those capabilities? everyone and no one. That vacuum is HR’s opportunity to play a leadership role in enabling organizations to meet the following competitive challenges. Globalization: Gone are the days when companies created products at home and shipped them abroad “as is”. With the rapid expansion of global markets, managers are struggling to balance the paradoxical demand to think globally and act locally. The imperative requires them to move people, ideas, products and information around the world to meet local needs. They must add new and important ingredients to the mix when making strategy: volatile political situations, contentious global trade issues, fluctuating exchange rates, and unfamiliar cultures. They must be more literate in the ways of international customers, commerce, and competition than ever

6

before. In short, globalization requires that organizations increase their ability to learn and collaborate and to manage diversity, complexity and ambiguity. Profitability Through Growth: During the past decade, most Western companies have been clearing debris, using downsizing, reengineering, delivering and consolidation to increase efficiency and cut costs. The gains of such yard work, however, have largely been realized, and executives will now have to pay attention to the other part of the profitability equation: revenue growth. Technology: From videoconferencing to the Internet, technology has made out world smaller and faster. Ideas and massive amounts of information are in constant movement. The challenge for managers is to make sense and good use of what technology offers. Not all technology adds value. But technology can and will affect how and where work gets done. In the coming years, managers will need to figure out how to make technology a viable, productive part of the work setting. They will need to stay ahead of the information for business results. Otherwise, they risk being swallowed by a tidal wave of data – not ideas. Intellectual Capital: Knowledge has become a direct competitive advantage for companies selling ideas and relationships (think of professional service, software and technology-driven companies) and an indirect competitive advantage for all companies attempting to differentiate themselves by how they service customers. Form now on, successful companies will be the ones that are the most adept at attracting, developing, and retaining individuals who can drive a global organization that is responsive to both its customers and the burgeoning opportunities of technology. Thus the challenge for organizations is making sure they have the capability to find, assimilate, develop, compensate, and retain such talented individuals. Change, Change and More Change: Perhaps the greatest competitive challenge companies face is adjusting to – indeed, embracing – nonstop change. They must be able to learn rapidly and continuously, innovate ceaselessly, and take on new strategic imperatives faster and more comfortably. Constant change means organizations must create a healthy discomfort with the status quo, an ability to detect emerging trends quicker than the competition, an ability to make rapid decisions, and the agility to seek new ways of doing business. To thrive, in other words, companies will need to be in a never-ending state of transformation, perpetually creating fundamental, enduring change. The five challenges described above have one overarching implication for business: the only competitive weapon left is organization. Sooner or later, traditional forms of competitiveness-cost, technology, distribution, manufacturing, and product features – can be copied. They have become table stakes. You must have them to be a player, but they do not guarantee you will be a winner.

The Changing Social Context and Emerging Issues

1.5 THE CHANGING ROLE OF HRM
In an organization, there are tall people, short people, fat people, thin people, black people, white people, elderly people, young people and so on. Even within each category there are enormous individual differences. Some will be intelligent, others not so intelligent, some are committed to jobs, others are not, some will be outgoing, others reserved and so on. “The point is that these differences demand attention so that each person can maximize his or her potential, so that organizations can maximize their effectiveness and so that the society as a whole can make the wisest use of its human resources” (Cascio). The challenge of HR managers today is to recognize talent and nurture the same carefully and achieve significant productivity gains over a period of time. The enterprise is nothing but people. Technological advances, globalize competition, demographic changes, the information revolution and

7

Human Resource Management: Context, Concept and Doundaries

trends toward a service society have changed the rules of the game significantly. In such a scenario, organizations with similar set of resources gain competitive advantage only through effective and efficient management of human resources (Dessler). The role of a HR manager is shifting from a protector and screener to the planner and change agent. In present day competitive world, highly trained and committed employees are often a firm’s best bet. HR professionals play a key role in planning and implementing downsizing, restructuring and other cost-cutting activities. They enable a firm to be more responsive to product innovations and technological changes. For example, team based work assignments and productivity linked rewards could replace manufacturing systems. In service enterprises like banking, hotels, insurance firms, etc., discourteous employee responses may ruin the relationships with customers. Employees who lack the temperament, maturity, social skills and tolerance for frequent contact should not be selected at all for service-oriented activities. HR professionals can help an organization select and train employees for such emerging roles. Employees are the primary pillars of corporate success. Machines neither have new ideas nor they can solve problems or grasp opportunities. Only people who are involved and thinking can make a difference. Through open communications, proper feedback and fair treatment of all employees’ grievances and discipline matters, HR professionals promote employee commitment at various levels. In such a case employees perform the assigned tasks willingly and enthusiastically and thus offer a competitive advantage to the organization. As rightly pointed out by Charles Creer, (Strategy and Human Resources, 1995), “in a growing number of organizations human resources are now viewed as a source of competitive advantage. ……Increasingly it is being recognized that competitive advantage can be obtained with a high quality workforce that enables organizations to compete on the lines of market responsiveness, product and service quality, differentiated products and technological innovation”. In the new economy, winning will spring form organizational capabilities such as speed, responsiveness, agility, learning capacity and employee competence. Successful organizations will be those that are able to quickly turn strategy into action; to manage processes intelligently and efficiently; to maximize employee contribution and commitment; and to create the conditions of seamless change. The need to develop those capabilities brings us back to the mandate for HR set forth at the beginning of this article. Let’s take a closer look at each HR imperative in turn. Becoming a Partner in Strategy Execution. Strategy is the responsibility of the company’s executive team – of which HR is a member. To be full-fledged strategic partners with senior management, however, HR executives should impel and guide serious discussion of how the company should be organized to carry out its strategy. Creating the conditions for this discussion involves four steps. First, HR should be held responsible for defining an organizational architecture. In other words, it should identify the underlying model of the company’s way of doing business. Several well-established frameworks can be used in this process. Jay Galbraith’s star model, for example, identifies five essential organizational component: strategy, structure, rewards, processes and people. The well-known 7-S framework created by McKinsey & Company distinguishes seven components in a company’s architecture: strategy, structure, systems, staff, style, skills and shared values. It’s relatively unimportant which framework the HR staff uses to define the company’s architecture, as along as it’s robust. What matters more is that an architecture be articulated explicitly. Without such clarity managers can become myopic about how the company runs – and thus about what drives strategy implementation and what

8

stands in its way. They might think only of structure as the driving force behind actions and decisions, and neglect systems or skills. Or they might understand the company primarily in terms of its values and pay inadequate attention to the influence of systems on how work – that is, strategy execution – actually gets accomplished. In India, the borderless world is shaking the roots of business. While some companies are feeling the excitement and facing up to the challenges, the demand for a tilted playing field6 indicates the anxiety among many Indian business leaders about competition. Increasingly, the mantra of the global economy is performance and competition.

The Changing Social Context and Emerging Issues

1.6 MANAGING HUMAN RESOURCES IN THE EMERGING SCENARIO
The 21st century would see the following inter-related phenomena emerging, posing challenges to the corporate world and culminating in Olympian competition:
l l l

Borderless world Diversity Knowledge Power

The cross-cultural, cross-border mingling has resulted in the creation of a new class of people—global citizens with global attitudes, tastes and networks. Since it unleashes multiple variables, the borderless world precludes immense complexity—complexity in the environment, in inter-organizational relationships, in modes of conducting business and in socio-cultural diversity. One of the important duties of the modern HR manager is to get things done through people. He has to bring employees into contact with the organization in such a way that the objectives of both groups are achieved. He must be interested in the people, the work and the achievement of assigned objectives. To be effective, he must balance his concerns for people and work. In other words, he must know how to utilize human as well as non-human resources while translating goals into action. It is in managing human assets that the manager’s capabilities are tested fully, because of the following reasons:
l

Human resources are heterogeneous. They consist of many different individuals, each of whom has a unique personality, a combination of different emotional responses to different stimuli and different values, attitudes, motives and modes of thought. Human beings behave in widely different and complicated ways. Their reactions to promises, praise or criticism, for example, can be quite different. It is very difficult to predict their behaviour especially in an organization where they work in-groups. Their behaviour is neither consistent nor readily predictable. Modern employees are better educated, possess greater skills, have more sophisticated technology available for their use and enjoy higher standards of living than previous generations. A human being himself determines what he contributes. If he is motivated, he will work for an organization more efficiently and effectively.

l

l

l

So, it must be recognized by the manager that individuals, not organizations, create excellence. Recognizing the importance of the human element in the production process, PF Drucker had remarked that “man, of all the resources available to man, can grow and develop”. The problem of establishing the right climate to maximize employee motivation and commitment is still with us.

9

Human Resource Management: Context, Concept and Doundaries

The Challenge of Human Resource Management
The most significant resource of any organization is often said to be its people. Such claims appear in organizations’ annual reports and mission statements. Of course, an organization is nothing but a group of people whose activities have been planned and coordinated to meet organizational objectives. An organization that exists to produce goods and services has a good chance to survive and prosper if it consists of the Right People. This is true for all organizations. In a similar fashion, people need organizations. The vast majority of people must work to support themselves and their families. But people work for many reasons other than economic security. For example, many also work to keep busy and feel useful, to create and achieve something. They want to gain recognition and achieve status or to test and stretch their capabilities. To meet these multifarious needs, people and organizations join forces. Unfortunately, this union seldom approaches perfection. Organizations encounter several obstacles in meeting their goals and in a similar way all employees report some problems in their attempts to be productive and efficient in their jobs and to feel satisfied in their work lives. The challenge of human resource management is to minimize these obstacles and problems. The central challenge facing society is the continued improvement of our organizations, both private and public. Another important purpose of human resource management is to improve the contribution made by people to organizations, (Davis) through effective and efficient use of resources. Efficient means that it must use the minimum amount of resources needed to produce results. Effective means producing right things through right ways. The resultant productivity (ratio of output to input) gains obtained through HR efforts enable managers to reduce costs, save scarce resources, enhance profits and offer better pay, benefits and working conditions to employees.
l

Pervasive force : HRM is pervasive in nature. It is present in all enterprises. It permeates all levels of management in an organization. Action oriented : HRM focuses attention an action, rather than on record keeping, written procedures or rules. The problems of employees at work are solved through rational policies. Individually oriented : It tries to help employees develop their potential fully. It encourages them to give out their best to the organization. It motivates employees through systematic process of recruitment, selection, training and development coupled with fair wage policies. People oriented : HRM is all about people at work, both as individuals and groups. It tries to put people on assigned jobs in order to produce good results. The resultant gains are used to reward people and motivate them toward further improvements in productivity. Development oriented : HRM intends to develop the full potential of employees. The reward structure is tuned to the needs of employees. Training is offered to sharpen and improve their skills. Employees are rotated on various jobs so that they gain experience and exposure. Every attempt is made to use their talents fully in the service of organizational goals. Integrating mechanism : HRM tries to build and maintain cordial relations between people working at various levels in the organization. In short, it tries to integrate human assets in the best possible manner in the service of an organization. Comprehensive function : HRM is, to some extent, concerned with any organizational decision which has an impact on the, workforce or the potential workforce (Bernardin). The term ‘workforce’ signifies people working at

l

l

l

l

l

l

1 0

various levels, including workers, supervisors, middle and top managers. It is concerned with managing people at work. It covers all types of personnel. Personnel work may take different shapes and forms at each level in the organizational hierarchy but the basic objective of achieving organizational effectiveness through effective and efficient utilization of human resources, remains the same. “It is basically a method of developing potentialities of employees so that they get maximum satisfaction out of their work and give their best efforts to the organization” (Pigors and Myers).
l

The Changing Social Context and Emerging Issues

Auxiliary service : HR departments exist to assist and advise the line or operating managers to do their personnel work more effectively. HR manager is a specialist advisor. It is a staff function. Inter-disciplinary function : HRM is a multi-disciplinary activity, utilizing knowledge and inputs drawn from psychology, sociology, anthropology, economics, etc. To unravel the mystery surrounding the human brain, managers, need to understand the appreciate the contributions of all such ‘soft ‘disciplines. Continuous function : According to Terry, HRM is not a one short deal. It cannot be practiced only one hour each day or one day a week. It requires a constant alertness and awareness of human relations and their importance in every day operations.

l

l

1.7 MANAGING TALENT: THE NEW ‘AVATAR’ OF HR MANAGER
Human relation movement was the turning point in the management field that changed the thinking in the field of management. After the Mayo’s work on human relation the human being has become a central point in the organization. Man as a resource now is being treated as a human being and not as machine. After that several other management thinkers also contributed a lot that how we can motivate, attract and retain people in an organization. Work of Marry Parker Follet, Maslow, Herzberg, Vroom, and Macgregor are invaluable in this field. The result of all these theories is the evolution of a new field called Human Resource Management. The functions of HRM include human resource planning, recruitment, selection, placement, and orientation of employees; training and career development; labour relations; management of performance appraisal, compensation, and benefit programmes and development of personnel policies and procedures. The issue has been brought into sharper focus over the past few years by the concept of the “war for talent” and, more recently, new proposals or reporting on human capital management. There are three fundamental forces fuelling the war for talent: the irreversible shift from the Industrial Age to the Information Age, the intensifying demand for highcalibre managerial talent, and the growing propensity for people to switch from one company to another. Because of above mentioned environment and its impact on organization, it forces us to give emphasis on understanding the talent management, what type of challenges it create for HRM and what role human resource management should play in managing the talented people. The paper starts with highlighting new vistas of talent management, and then moves on to discuss the new avatar of the HR manager as talent manager, in the next section various strategies used for attracting and retaining talent have been outlined.

Talent Management: New Vistas
Talent management is a subject that has dominated HR thinking for years, variously described as manpower-planning modeling, succession planning or high-flyer
1 1

Human Resource Management: Context, Concept and Doundaries

identification. As a consequence we have heard the emergence of “talent managers” within many organizations. So, what is talent? A definition could be: “An identifiable ability that is perceived to add immediate or future value to any prescribed activity, discipline or enterprise”(Maurice, 2003). Identified talent normally requires an investment of resource to realize its value and a disciplined organizational mindset prepared to wait for the investment to pay off. As a result, an effective talent-management system or process is both essential for securing competitive advantage and to produce quick results. Talent management is a core element of human capital management. People generate capital for an organization through their competence, their behaviours and their intellectual energy. In a commercial world increasingly dominated by knowledgeintensive organizations, the latter is an ever-more important requirement for competitive success. Intellectual energy is about innovation and change, about new thinking and about opportunities developed from problems. Talent management is primarily about identifying, developing and using those people who can provide those critical intellectual-energy ingredients. In general, from a successful talent-management system we expect: sustainable commercial competitiveness; higher levels of focused innovation; improved staff engagement and commitment, low turnover rates of knowledge and experience, lower external resourcing costs. After the above analysis we can say that talent management has now become a more challenging job for an organization. This is also very clear that managing employees in any organization is a job of Human Resource Department. But as time passes and with reference to above referring environment now there are more opportunities for talented people in today’s world. So because of all these it is very difficult to manage them with traditional human resource practices, we have to do more than that otherwise we will lose them, and in this competitive and fast changing environment we will not survive at all. All these forces are new challenges before the Human Resource Management. One of HR’s most challenging jobs now involves managing talent. Much has changed in recent years to make this an increasingly critical area for HR. Among the issues that have made the talent management job more difficult are: frequent restructuring, a growing reliance on outside hiring, flatter organizations with fewer growth options, a tighter job market (at least in the long term), the aging workforce and the decline of clear career paths, as we mentioned above that it create a big challenge before the HR. In order to retain its most valuable stakeholders, an organization must find innovative ways to continually recruit its own employees. How well do you know and understand your current employees growth path? Are your employees looking outside your company for advancement opportunities? Retaining top quality talent is an enormous challenge facing corporations today and it is duty of HR to cope with it. In order to build effective retention and deployment strategies, companies must maintain visibility into and communication with their employees. An organization’s capacity to hire, develop and retain talent is the most crucial business process as there is a definite correlation between intangible assets and market capitalization, according to the protagonists of talent management. It is due to these intrinsic intangible values that some companies are perceived as more valuable than others. Infosys (Sachdeva, 2002), for example, is perceived as being worth fifty times the value of its recorded assets.

1 2

Talent research company Kenexa paints a worrying picture of HR’s ability to be on top of its game when it comes to talent management. Ninety per cent of the 22 HR

professionals polled strongly agree that recruiting talented people is a key issue, and 93 per cent feel the same way about retention. Yet 57 per cent of companies have no specific talent management strategy, and just 37 per cent employees someone whose specific remit is to manage talent (Paton, 2002). For HR professionals, this sets a challenge. On one hand, effective talent management is an important feather in the cap of any HR manager. On the other hand, identifying, grooming and retaining talent is a notoriously nebulous business. Human Resources Department has an important part to play in providing the backbone for talent management. So at the end we can say that managing the talent means find, develop and keep the people who keep you in business is the most challengeable job of today’s HR department in any organization.

The Changing Social Context and Emerging Issues

1.8 HRM IN INDIA
The Dynamics of Personnel/Human Resource Management (P/HRM)
P/HRM (both terms used interchangeably) is a dynamic discipline as it mostly deals with ever-changing work settings, characterized by people having varied cultural, social and religious backgrounds, diverse goals, multifarious expectations and attitudes. The personnel scene itself has been changing quite dramatically over the years. Government regulations, competitive pressures, unionization of employees, do exert a strong influence on the way the personnel function is carried out in various organizations. Further, the nature of the work goals, make-up of the workgroup, in the long run. Over the years, employees have become more sophisticated in their demands for high quality work environments, adequate pay and benefits, proper training and career growth opportunities. All these factors compel human resource professionals to look for ways to improve their interactions with employees, other managers and outside groups in order to maximize worker productivity and satisfaction. However, as pointed out by Rudrabasavaraj, personnel administration in India, as it is interpreted, discussed and practiced is largely static, legalistic and ritualistic. There seems to be a lot of confused thinking and a plain lack of awareness of what P / HRM is.

Changing Role of Human Resource in View of Social Factors
A number of environmental factors influence the work of a HR manager. He cannot perform his job in a vacuum. These factors (Table 1) influence the organization through human resources. The term ‘environment’ here refers to the “totality of all factors which influence both the organization and personnel sub-system”.
Table 1: External and Internal Factors influencing the P/HRM Function External Factors
l l l l l l l l

Internal Factors
l l l l l

Technological factors Economic challenges Political factors Social factors Local and Governmental issues Unions Employers’ demands Workforce diversity

Mission Policies Organizational culture Organization structure HR systems

1 3

000 jobs have been slashed voluntarily). Consequently. Let us examine these issues in detail. In addition to these. operates by public consent to satisfy society’s needs. DTC the slashing of jobs did not take place in a big way) if the public believes that it is not operating in the best interests of society.. Firms do not operate in isolation. Local and Governmental Factors Governments all over the world had neither the time nor the interest to care for the problems pertaining to labour arising in industry till the end of 19405. HR systems. Social impacts have to be carefully evaluated before undertaking any action programme. Is it possible for a person to buy a firm’s products or services if he remains unemployed? The society at large nowadays is more demanding. HR managers have to assess reactions beforehand and come out with certai11 proactive steps (explain facts. The job of a HR manager is to balance the demands and expectations of the external groups with the internal requirements and achieve the assigned goals in an efficient and effective manner. technologically-outdated Ambassador car model. Considerable pressure can be exerted on a firm to alter its practices (for example.Human Resource Management: Context. train or retrain them. the Government in India. the fate of the firm/brand is automatically sealed (as it happened in the case of Bajaj’s motor cycle.). If the expectations are not met or the tall claims do not stand the test. for example. forced the governments to intervene in human resource management and to enact various pieces of labour legislation. What do you do when the company operates in an area where large army of unemployed people live? A philosophy of hiring workers who are capable of being trained as against hiring only qualified applicants may help reduce unemployment. in Steel Authority of India. etc. They are stuck with society. Onjus) and the rival (Tropicana) tries to contest this issue openly. etc. But the need for Governmental interference arose out of the belief that Government is the custodian of industrial and economic activities. the management cannot manage the personnel unilaterally as it used to do. The functional areas. And society here includes the firms’ own employees and their friends. The actions of business are being monitored and evaluated closely. Hence. 1 4 . understand the internal dynamics properly and devise ways and means to survive and progress. specific cultural issues peculiar to a unit. Before cutting jobs in a big way (where. has come out with a complex set of rules and regulations on the employment policy of the organizations by reserving certain number of jobs of all categories to certain sections of the community. in National Textile Corporation 40. the customer is ready to evaluate the issue dispassionately and decide about the future course of action. Likewise. Each of these external factors separately or in combination can influence the HR function of any organization. relations. Social Factors HR managers have long realized the importance of conducting their business in a socially relevant and responsible manner.g. failure of many employers to deal fairly with workers. Concept and Doundaries The external environment consists of those factors which affect an organization’s human resources from outside the organization. the personnel man has to grapple with the problem of workforce diversity. non-fulfillment of plan targets and the like. If a manufacturer claims that his product has one hundred per cent juice content (e. It may also improve profitability in the long run. structural changes. SBI and other State owned Banks. ‘Cheetah’. neighbours as well. after all. too. A firm. give outplacement help. the internal environment also affects the job of a HR manager. because it has to abide by the rules and regulations imposed by the Government from time to time. corporate policies and a lot of other factors influence the way the HR function is carried out. The emergence of problems on the industrial front in the form of trade union movement. The HR manager has to work closely with these constituent parts.).

Workforce Diversity Diversity in the field of HRM can be defined as the situation that arises when employees differ from each other in terms of age. 1948. awareness of legislations enacted by the government at the Centre and the States. At the same time companies have to understand and appreciate the changing values of the young workers who join the company with lot of expectations. The composition of the workforce is changing in India (Teble 2). The Minimum Wages Act. total loyalty to company anl1 commitment to work seem to be a thing of the past. 1936. steady work environments. Big private sector firms have been exploiting their talents to conceive. supported by attractive compensation offers. At the same time. ethnicity. The Employment Exchange (Compulsory Notification of Vacancies) Act. 1961. At present. 1923. Trade Unions Act. In addition. etc. less-paying. The Payment of Bonus Act. organizations have to institute appropriate HR policies. The Payment of Wages Act. The days of life time employment. 1965. Table 2: Young vs Old Workforce Young l l l l l l Old l l l l l l Inexperienced Impulsive Inpatient Unethical / Not always ethically conscious Selfish Manipulative Difficult Traditional Go by the rule book Workaholic Inflexible Prefer safe. 1972. The important legislations enacted in India affecting HRM are: Factories Act. Payment of Gratuity Act. These have to be discussed with union representatives invariably. The Changing Social Context and Emerging Issues Unions Unions have also gained strength after the advent of Industrial Revolution. employees are no more fascinated by secure. The Employment State Insurance Act. Old employees have grown in number now.One of the most important external factors that affects HRM is the legal environment. The Apprentice Act. routine and standardized jobs offered by the public sector and other government-owned and controlled organizations. to draw from their expertise and initiate programmes that meet these needs. unions have shifted their emphasis from economic tactics to the political pressures. 1948. They must listen to their experienced employees. Workmen’s Compensation Act. To attract and retain young brains. In consequence. etc. Thus “. 1946. Workforce diversity means that organizations are becoming more heterogeneous in terms of age gender. .e. the scope of managerial discretion in personnel activities has been narrowed down. telecom.. thanks to the improved medical and health care. ethnicity.1961. i. 1926. With the formation and recognition of these organizations. gender. health care. skilled and knowledgeable employees are occupying positions of importance. 1948.the unions have turned increasingly to governmental action as a means of achieving their objectives in addition to using the more traditional actions”. thanks to the opening up of private sector.. race. etc. the Maternity Benefit Act. education. operate and develop new ventures in emerging areas such as oil. The Industrial Employment (Standing Orders) Act. 1959. less risky activities Organizations now cannot discriminate on the basis of age. insurance. including India.. the issues relating to employee interests are no longer determined by the unilateral actions of management. 1 5 . these organizations constitute one of the power blocks in many countries. Young. banking.

Shiv Sena. HR managers have to deal with issues of child labour (a sensitive issue in industries such as carpet making. This massive segment of the female workforce contributes as much as 60-70 per cent to total agricultural activity in our village. religious origins. is qualitatively unprotected. Table 3: Minority Groups.5 per cent of women workers are engaged in the unorganized sector. is a strong supporter of this policy ever since its inception as a political party in Maharashtra. telephone reception counters. government studies reveal that the female workforce in India does indeed make a significant contribution to the nation’s economy and family welfare. in all public sector undertakings. Special Feature. Displaced persons too get preferential treatment for lower level positions advertised by the company which has acquired their land/house sites. In India alone over 400 million are employed in various streams due to a combination of factors like: l l l l l Women’s emancipation Growing economic needs Greater equality of sexes Increased literacy rate Suitability for certain soft jobs (public relations. 1 6 .Human Resource Management: Context. 1999) Exhibit 1: The Invisible Workforce Women hold up more than half the sky. this economic contribution is either abjectly unrecognized or where taken note of. Certain sections of society enjoy a preferential treatment. for example. etc. guaranteed by constitution. Concept and Doundaries Diversity issues in Indian companies are somewhat peculiar owing to differences in social ethos. etc. –Business India. crackers industry. The list of OBCs has also been expanded now by the Vajpayee-led BJP government.). The sons of the soil policy ensures reservation of certain category of lower level jobs to local people in preference to outsiders. Women in Management. right at the entry level itself shown in the following Table. to extend employment benefits to other neglected sections of society. Yet. at the same time. etc.3 per cent -actively participate in agricultural and allied operations. for building factories/production facilities. In addition. Reserved Category Employees in India Scheduled costs and scheduled tribes (SCs & STs) Other backward castes (OBCs) Sans of the soil Ex-Defence and Para-military personnel Physically disabled Displaced persons (DPs) Gender issues Contract labour Child labour The job reservation for SCs and STs have been extended for another 10 years. cultural differences and regional origins. 89. Far from being just a vigorously uttered slogan. starting from 2. Reliance. (Essar Steel. (Praxis.000 tl1rough a recent government notification. Women at Work Women employees today constitute a major share of the workforce.). According to 1981 census. March 6 to 19. etc.) and contract labour where the various pieces of labour legislation are being conveniently ignored by the employers. of which a huge chunk -82.

people have more educational and developmental opportunities than ever. increasing counter-productive behaviour. 1986. technological revolution has brought about occupational mobility. it was believed that management has got the brains and hence will decide what is good or bad for the employees. Work is regarded as only one alternative among many as a means for becoming a whole person in order to do one’s own thing. it has become imperative for the management to include various fringe benefits to improve morale. construction industry. (e) personal convictions over dogma. more widely understood. Organizations must now advance from general affirmation and enthusiasm for the career development of their personnel to greater precision. leisure. the traditional employee and the contemporary employee tend to hold markedly different attitudes toward work and authority. Further. police. banking. Consequently. hospitality. mostly due to increased transportation facilities and the mobile character of people. NJ. encourage employee participation in decision-making and the like to pave the way for industrial betterment and to meet the ever increasing demands of workforce. this paternalistic atmosphere has changed with the advent of unions. Organizational workforce thus consists of people from different regions. The Changing Social Context and Emerging Issues Changes in Employee Roles and their Values Traditionally. etc. This in turn has helped create a whole new set of employee expectations. creches. The concepts and goals of education and development programmes must be more precise. introduce a machinery to redress grievances. In recent years. Another change in the values of employees is the declining work ethic. The employees are expected to follow the commands of the boss without posing any questions. insurance. reflected in formal policy statements and translated into institutional and personnel practice. – Jack Halloran. the changing structure of the workforce has led to the introduction of new values in organizations Exhibit 2: Changing Work Values In our increasingly complex society. prohibition of women in night shifts and in hazardous jobs. Employers have also gained consciousness regarding their rights in the workplace. etc. and (f) the individual over the organization. (b) equity and justice for the employees over economic efficiency. the work ethic has declined in favour of a more existential view of life. They handle both ‘hard’ and ‘soft’ jobs now in areas such as accounting. airways. Prentice Hall.). Further. Family activities. Alienation from the job. The principle of equal pay for equal work has more or less become the rule now in most industries (barring plantation. teaching. However. Personnel and HRM. 1 7 .The initial reluctance of employers to give jobs to women seems to be a thing of the past (due to increased financial burden in the form of maternity benefits. (c) pluralism and diversity over uniformity and centralism. As a result. rising expectations and changing ideas of employees are some of the other factors responsible for the changing values and roles of human force. avocations and assignments in government and schools are all equally viable means through which a person can find meaning and become selfactualized. In the days gone by employees regarded job as a central life interest and pursued work assignments with single-minded devotion. These changes in workforce have naturally complicated the task of HRM as the HR manager. beauty care and even driving. has to grapple with employees with vastly different backgrounds.). (d) participation over authority. These are moving towards (a) emphasis on quality of life rather than quantity.

management must plan to deal with employees on a higher plane of logical interactions”. social workers. values and historical 1 8 . Human Potential Development and the latest fad is that separate Human Resource (HR) function in an organization itself is redundant and same could be outsourced.Human Resource Management: Context. 1996). For example. However. researchers. (1) A greed to make fast bucks (2) Fear of becoming bankrupt (Micklethwait and Woodridge. Increased formal education led to the changes in attitudes of employees. they remain as fads and die in short span of time. which captured the interest of practitioners and became a Mantra of the fashionable business managers and the management institutes in the 80’s and the 90’s. nurses. 1.9 FADDISM IN WESTERN MANAGEMENT AND ITS IMPLICATIONS FOR INDIAN MANAGERS Though there are number of management theories emerging every now and then. more leisure time and greater flexibility in scheduling time away from work especially in 80s. One implication of an increase in educated and knowledge workers-accountants. managers is that HRM will be called upon to find innovative ways of keeping these people challenged and satisfied. The Asian. Another recent fad has been the “Business Process Re-engineering” which according to some is resurrection of F W Taylor’s Scientific Management. Today even TQM is considered passive by many practicing managers. are unable to decide about the nomenclature for the Management of people.where environment. there is a backlash against “Re-engineering” as some consider that it ignores the human side of the organization. computer experts. employees are seeking a greater balance between their work lives and their personal lives. they find it difficult to schedule doctors’ appointments. Human Resource Development (HRD). Practitioners are influenced more by management writings in the popular or business press rather than objective analysis of the “fads”. when the Western management itself is passing through a confused stage of evolutionary process and does not find many of its fads workable. especially the Indian organizations and the management institutes also are not far behind in moving with these fads. specially the American. Thus. transplanting the same to developing country like India . Human Resource Management (HRM). They went on changing from Labour Management to Personnel Management. Feeling severely constrained by the Monday-through-Friday. nine-to-five grueling routine. Concept and Doundaries Further. Level of Education Workers have been entering the organizations with increased level of formal education in recent years. accommodate children’s school schedules and satisfy other personal needs away from work. The proliferation of management theories and prescriptions are driven by two human instincts. Total Quality Management (TQM) was one of the themes. The Western Management professionals. “As the base of education broadens. engineers. Knowledge workers often demand more responsibility and autonomy than their employers are willing or able to afford. teachers. Another fad relates to the terminology of managing people in organizations. Employees are demanding that management look more closely at work schedules which accommodate their needs in addition to the needs of the company. The well-educated employees always challenge and question the management’s decisions and want a voice in the company’s affairs affecting their interests.

Yet 57 per cent of companies have no specific talent management strategy. Much has changed in recent years to make this an increasingly critical area for HR. grooming and retaining talent is a notoriously nebulous business. 1991. This dualism gets reflected in wide gap between stated policies and practices and actual policies followed in reality. though often denied formally. jobs now involves managing talent. 2002). On one hand. Talent research company Kenexa paints a worrying picture of HR’s ability to be on top of its game when it comes to talent management. Human Resources department has an important part to play in providing the backbone for talent management. Infosys (Sachdeva. identifying. while the employees blame the management for being “hypocritical” i. this sets a challenge. a tighter job market (at least in the long term). Give employees control over their career paths by allowing them to submit their own profiles and skill sets. In order to retain its most valuable stakeholders. according to the protagonists of talent management. It is due to these intrinsic intangible values that some companies are perceived as more valuable than others. and just 37 per cent employees someone whose specific remit is to manage talent (Paton. as we mentioned above that it create a big challenge before the HR. effective talent management is an important feather in the cap of any HR manager. Ninety per cent of the 22 HR professionals polled strongly agree that recruiting talented people is a key issue. Among the issues that have made the talent management job more difficult are: frequent restructuring. Challenging work environments and the opportunity to gain diverse job experience motivate high quality employees. a growing reliance on outside hiring. On the other hand. for example. In order to build effective retention and deployment strategies. Virmani. Presenting employees with avenues for growth and advancement increases their loyalty to the organization and reaffirms the company’s commitment to their employees. How well do you know and understand your current employees growth path? Are your employees looking outside your company for advancement opportunities? Retaining top quality talent is an enormous challenge facing corporations today and it is duty of HR to cope with it. An organization’s capacity to hire. For HR professionals. These employees want to participate in the decisions impacting their role within the organization. the aging workforce and the decline of clear career paths. The Changing Social Context and Emerging Issues 1 9 . flatter organizations with fewer growth options. is perceived as being worth fifty times the value of its recorded assets. 2000).background are quite different .e. So at the end we can say that managing the talent means find. companies must maintain visibility into and communication with their employees. develop and retain talent is the most crucial business process as there is a definite correlation between intangible assets and market capitalization. not following what they preach. an organization must find innovative ways to continually recruit its own employees. 2002). This dualism eventually results in conflict as the management blames the employees for not allowing them to follow the “modern” concepts of management.results in further confusion leading to “dualism” in Indian management (Virmani and Guptan. develop and keep the people who keep you in business is the most challengeable job of today’s HR department in any organization. Companies can continue to engage employees and provide internal candidates with a mechanism to manage their individual employment experience within the organization. and 93 per cent feel the same way about retention.

you need to give them skills and tools to do the job they are currently doing well even better. Murphy reckons. particularly when they see there peers being provided with development opportunities by their employers.Sterling Livingston rightly observed and explained the vital role that managers play in developing their subordinates: “Although most executives have not yet diagnosed the problem. c) Employees Deployment As employees move easily between diverse roles. b) Grooming Future Talent While analytical and communication skills and boosted confidence will often give graduates an edge. In the past. One solution has been to implement a company-wide project on internal candidates and interviewing them. industry’s greatest challenge by far is to rectify the under-development. J. Concept and Doundaries 1. 2002). a) Develop People Smart employers know that helping employees to manage their career progress will help them to keep good people. Instead of conducting it as an annual ritual. because now your one skill can become meaningless any time. It is our job to provide tools to allow them to do the job” (Reckons. Now.10 GUIDELINES FOR BETTER HRM Following are few guidelines for better HRM. then definitely they will work hard for you otherwise not. Now more employees are asking ‘what can you do for me’. This deployment is very useful for employees also because now every employee wants to become a multi skill person. though. there needs to be a reassessment and a recognition that. In this context training needs analysis and plotting of career growth paths for employees are important activity of HR professionals. but also for training and development too. So if you have given chance to them for all these than that inspires and motives a lot to any employee. 2 0 . 1988). explaining the reasons behind them and using competency evidence for not only the role. Interviews have been made more formal. This allows companies to become more agile and to rapidly deploy workers to new projects or locations. Now every employee wants that company should give them or send them to different training and development programmes for his/her career developments and have to arrange and give opportunities to employees for all these. the value of the internal talent market increases because employees are armed with transferable skills and knowledge that can be applied in many areas of the organization. So now ‘what the organization is doing for me’ is becoming more important. as well as moving people about. the need analysis should really contribute towards the skill enhancement of the employees resulting in the fulfillment of current and future organizational requirements. “There are people who do not go to university for some very good reasons. Now this is the duty of organizations that you move for all these so that you can retain employees in your organization. You create opportunities for employees. people were often promoted rapidly into roles and moved about the company at will.its young managerial and professional talent” (Livingston.Human Resource Management: Context. underutilization and ineffective management and use of its most valuable resource. HR across the board is rapidly moving away from the perception that a degree is a mandatory springboard to greater things.

Greater level of involvement of HR people in the day-to-day life of employees is becoming the norm of the day for companies. Winning the war for talent requires winning the hearts of employees and their families. And coaches are right there with the people they coach. encourage them. he is totally zero from the point of view of experience. which are looking for greater commitment from employees. and at several occasions it acts as a 2 1 . which are crucial for talent retention in organizations.11 SUMMARY HRM should take on responsibility for elder care. When a person joins just after his getting degree of MBA. This demands that intelligent but non-experienced need a personal coach for their perfection in the job and to cope-up with early entry-level problem. They offer penetrating insight to people about themselves. by way of giving more and more emphasis on family and life’s interests. and constantly helping their clients move in the right direction. This enables employers to cultivate relationships with employees on the employee’s terms and to consistently demonstrate value to the employee through opportunities for internal mobility. They give them good and bad news. and retention. once in place. Employees find such programmes attractive because they empower the individual to maximize the value of the benefits an employer offers. The Changing Social Context and Emerging Issues e) Turn Managers into Coaches Now time has come that every employee wants to become 24 carrot gold for his future safety point of view. these plans are comparatively easy to set up and. organizations need to go one step ahead of their competitors in winning the hearts of their families. praising them when it’s appropriate. long-term security/care. Personal coaches are personal advocates for their clients. there is virtually no additional administration involved. Day to day coaching creates the kind of trust and confidence. scolding them when necessary. From this system we can motivate and inspire the people to do extraordinary work. the genuine bond between managers and individual contribution that cuts through everything. For HR. What great personal coaches are great at is helping people help themselves. An increasing trend is visible among the young professionals in recent years. These benefit packages allow people to identify their own needs and custom design their own benefits.d) Build Employee Communities Organizations should build high quality internal talent communities through segmentation. 1. but advocacy is aimed at the client. moral. This always is very cost effective in all respects and will go a long way in boosting the morale of existing employees. Coaching style of management is the single greatest factor in improving productivity. for which. So implementation of this system in the organization is a duty of HR department with the help of top management. The direct correlation of morale and higher productivity could be sufficient for any justification required for these moves when it comes to confronting with the top management. Any recruitment opportunity in the organization should be viewed as a career growth opportunity for the existing employees without compromising efficiency requirements. and other social needs through cafeteria-style benefits programmes. This increases job satisfaction and leads to higher retention rates. They give people concrete solution to help them improve. and that offer a new set of opportunities to HR in those organizations. Every leading organization is looking at developing their employees into balanced human beings in order to make them use their real potential. They help people believe that they can do better.

Dr B Rathan Reddy. Discuss the challenges associated in the HRM in present business scenario. Increasing instances of talent wedding talent. 1. Management of Human Resouces. 2 2 . Concept and Doundaries critical factor for employment decisions as well. Dr T V Rao. Dr Pritam Singh and Dr Asha Bhandarkar. 2004. 1998. Describe the guidelines for better HRM. Sarma.12 1) 2) 3) SELF ASSESSMENT QUESTIONS Write a comprehension on the emerging dimensions of HRM. Effective Human Resource T& D Strategies. Himalaya Publishers. New Delhi.13 FURTHER READINGS Challenges for Human Resources in Changing Scenario.M. Research Paper. 33rd world FTDO Conference. Himalaya Publishing. 2004. HR has to work as a good friend in need. 33rd World FTDO Conference. lead to either of the spouse working from home providing financial support to the family and thus giving more flexibility to the other person in selecting organizations that provide increased work flexibility. A. 1. 2004. When it comes to occasions of personal realignments.Human Resource Management: Context. New Delhi. Personnel and Human Resource Management.

union-management relations. heavy taxes and a host of other factors having a significant bearing on the profitability of a firm do not seem to support government’s active intervention in industry.Appendix 1: CASE STUDY Government Regulation Since the 1940s the Indian Government has increased its regulation of the way employers treat employees. rising wage bills. As the guardian of the economy and as a regulator of employment relations. ensures a safe and healthy environment. The Trade Union Act. guarantees a minimum wage. how will HR departments be affected? 2 3 . are not very optimistic about governments trying to regulate the employer-employee relations closely. improved treatment. 1936. etc. The regulatory framework covering factories. The Changing Social Context and Emerging Issues Questions 1) 2) Which trend do you think will occur and why? If government regulation continues to increase. the Factories Act. the Payment of Wages Act. the Central Government does not seem to loosen its grip in the near future. 1923. etc. is quite rigorous and elaborate. They base their arguments on the current trends in developed countries in this area in the form of employer-sponsored health insurance schemes. Competitive pressures. compensation issues.. however. deregulation of industry. permits workers to join unions. offers compensation to injured workers. Others. 1926. they should be freed from all types of control. especially those imposed by the government. dispute settlement. inflationary pressures. increasing number of older employees needing social security protection. Experts believe that the trend toward increased governmental intervention will continue. There are laws that prohibit discrimination and restrict the freedom of employers to make HR decisions in other areas as well. 1948. the Minimum Wages Act. the Workmen’s Compensation Act. greater job security. These experts contend that if Indian firms have to remain competitive in international markets. 1948. checks fraudulent practices in the payment of wages to workers.

paying or training people.1 INTRODUCTION Human resource management (HRM) is an approach to the management of people. therefore. HRM is proactive rather than reactive. selection.ng an appropriate corporate culture. be managed which means that organisational values may need to be changed or reinforced. and make a major contribution to.2 CONCEPT OF HRM HRM is a strategic approach to the acquisition. development and management of the organisation’s human resources. will be required to get them accepted and acted upon. Third. or dealing with employee relations problems as they arise. motivation. the corporate culture and the values. Finally.7 Introduction Concept of HRM Objectives of HRM Human Resource Functions Summary Self Assessment Questions Further Readings 2.3 2. and explain the functions of HR. based on four fundamental principles. i. training and management development. rather than waiting to be told what to do about recruiting. and that continuous effort.2 2. salary administration. It is a specialised field that attempts to devd . These will be overlaid 2 4 . starting from the top. Structure 2. performance appraisal. such as manpower planning.5 2. Second. always looking forward to what needs to be done and then doing it.1 2. First. This culture must.Human Resource Management: Context. 2.e. The techniques for the application of HRM will include many familiar functions of personnel managers. organisational climate and managerial behaviour that emanate from that culture will exert a major influence on the achievement of excellence. HRM is concerned with integration . Concept and Doundaries UNIT 2 THE CONCEPT AND FUNCTIONS OF HUMAN RESOURCE MANAGEMENT Objectives After reading this unit.getting all the members of the organisation involved and working together with a sense of common purpose.4 2.. human resources are the most important assets an organisation has and their effective management is the key to its success. the achievement of corporate objectives and strategic plans.6 2. you should be able to: l l understand the meaning and concept of human resource management. and responsibilities and new roles of HR practitioners. and introducing programmes which reflect and support the core values of the enterprise and ensure its success. this success is most likely to be achieved if the personnel policies and procedures of the enterprise are closely linked with.

they are human resources which means that they have their own special characteristics and. some basic assumptions about human resources are also different from the traditional approach. it is about the management of work and people in the firm. units and processes in the organisation.by special programmes designed to improve communication systems. training and development. short-term. there are three meanings attached to the concept of HRM. and productivity. involvement. resources. It integrates in a meaningful way the various sub-systems like performance appraisal. cannot be treated like material resources. Managing people includes both individual and collective dimensions. It is an asset to be invested in. The organisation also undergoes development with the overall benefits along with the development of its members. HRM is concerned with both the structure of work in a firm and with all the related employment practices that are needed to carry out the work. viz. career planning. and behavioural science. There is scope for unlimited development of these resources. potentiality appraisal and development. It is a scientific process of continuously enabling the employees to improve their competency and capability to play their present as well as future expected roles so that the goals of the organization are achieved more fully and at the same time the needs of the employees are also met to an adequate extent. The important assumptions of HRM are as follows: 1) 2) 3) 4) The members of an organisation are reservoirs of untapped resources. reactive. Its approach is multi-disciplinary from the beginning to the end. But it is much more than its parent disciplines. organisation development. It is more in the nature of self-development than development thrust from outside. industrial relations. persons working in an organization are regarded as a valuable source. separate from the business. human resources do not merely focus on employees as individuals. The major attention of traditional personnel function is on personnel administration or management while the major attention of HRM is on developing people and their competencies. an outgrowth of the older process and approach. In the first place. therefore. and human resource information. The traditional personnel management is non-strategic. employee welfare and quality of work life. implying that there is a need to invest time and effort in their development. but also on other social realities. Secondly. and the entity of the total organisation. and constrained by a limited definition of its role as dealing with mostly unionised and low level employees. rewards. If personnel management is curative. The HRM model is characterised as being employee-oriented with an emphasis on the maximisation of individual skills and motivation through consultation with the workforce so as to produce high levels of commitment to company strategic goals. and end-users of all products and services. commitment. These include the role or the job a person has in the organisation. HRM is not simply about HR or ‘people practices’. Under the HRM approach. The Concept and Functions of Human Resource Management 2 5 . In its essence. inter-team processes. the various teams in which people work. The key distinguishing feature of HRM is its evolving strategic role. And thirdly. HRM essentially emphasises and incorporates those expectations which are not being fulfilled through the traditional personnel management. Broadly. no doubt. HRM is a production model approach to personnel management. the dydadic unit. The approach focuses on the need to humanise organisational life and introduce human values in the organisation. personnel management. HRM is preventive. (consisting of the person and his superior). It is a resource to be used to its fullest capacity. HRM is also more comprehensive and deeprooted than training and development. HRM is the qualitative improvement of human beings who are considered the most valuable assets of an organization-the sources.. research and systems development. HRM is.

integration of the goals of the organisation with the needs of the employees. judgment calls. While doing so. Societal Objectives The societal objectives are socially and ethically responsible for the needs and challenges of society. 2 6 . the society may limit human resource decisions to laws that enforce reservation in hiring and laws that address discrimination. Personnel system and procedures should be designed to achieve maximum efficiency 8. Table 1: Some Basic Assumptions Underlying Traditional Personnel Function and Human Resources System Traditional Personnel Function (TPF) 1. organisational. Specifically.Human Resource Management: Context. formulates necessary plans and strategies. systems. HRM objectives are four fold: societal. The responsibilities of HRS relate to HRS. safety or other such areas of societal concern. HR systems and procedures should be designed on the basis of process values to reduce human wastage 8. Apart from this. they have to minimize the negative impact of such demands upon the organisation. and the process of the total organisation 6. and learning from past mistakes. and personal. In practice it is an “art” full of pitfalls. The major attention of TPF is on personnel administration or management 7. The main responsibilities of TPF relate to salary and job administration. HRD is an organic whole: All the parts are interlinked 3. All managers irrespective of functions share the responsibility of human resource functions 5. 6) The management of human resources is more of an art than a science. TPF has the main responsibilities for their personnel matters 5. and management of people and their development 6. People in an organisation are motivated mainly by salary and rewards Human Resource Development (HRD) 1. teamwork. The failure of organisations to use their resources for society’s benefit in ethical ways may lead to restrictions. and above all. For example. collaboration among different groups of individuals. TPF is an independent function 2. and creates an overall climate and support for its implementation. Concept and Doundaries 5) The organisation further develops a culture in which utmost emphasis is placed on harmonious superior-subordinate relations. The major attention of HRS is on developing people and their competencies 7. People are primarily motivated by challenges and opportunities for development and creativity 2. functional. open communication. there are other objectives too.3 OBJECTIVES OF HRM The primary objective of HRM is to ensure the availability of competent and willing workforce to an organisation. The main task of HRD is to develop enabling capabilities (proactive role) 4. There are several sub-functions under TPF 3. The main task of TPF is to respond effectively to the demands (coping role) 4. HRD is a sub-system of a larger system (organisation) 2. Top management takes the initiative for HRM. people.

2 7 . 3. Otherwise. 15. employee performance and satisfaction may decline giving rise to employee turnover. Functional Objectives 4. Simply stated the human resource department exists to serve the rest of the organisation. 1. 2. Organisational Objectives 3. 5. Jr. at least insofar as these goals enhance the individual’s contribution to the organisation. 3. 3. The Concept and Functions of Human Resource Management Functional Objectives Functional objectives try to maintain the department’s contribution at a level appropriate to the organisation’s needs. 2. Societal Objectives 1. 1. it is only a means to assist the organisation with its primary objectives. 4. 1. retained and motivated. Personal Objectives Personal objectives assist employees in achieving their personal goals. Table 2: HRM Objectives and Functions HRM Objectives 1. 5. and Keith Davis. Personal objectives of employees must be met if they are to be maintained. Supporting Functions Legal compliance Benefits Union-management relations Human resource planning Employee relations Selection Training and development Appraisal Placement Assessment Appraisal Placement Assessment Training and development Appraisal Placement Compensation Assessment 2. Human resource management is not an end in itself. Werther. Personal Objectives Source: William B. 2. The department’s level of service must be tailored to fit the organisation it serves. 3.. 6. 2. Human resources are to be adjusted to suit the organisation’s demands. 4.Organisational Objectives The organisational objectives recognise the role of human resource management in bringing about organisational effectiveness. p. Human Resources and Personnel Management. 7.

managers. performance appraisal measures serve to stimulate and guide employee development as well as salary administration purposes. It is that part of management which is concerned with the people at work and with their relationship within an enterprise. Job Analysis: Job analysis is the process of describing the nature of a job and specifying the human requirements. Orientation: Orientation is the first step toward helping a new employee adjust himself to the new job and the employer. 2 8 . Concept and Doundaries 2. and company rules and expectations. Training and Development: The training and development function gives employees the skills and knowledge to perform their jobs effectively. and (4) employee maintenance. The end product of the job analysis process is the job description. Training and development programmes provide useful means of assuring that employees are capable of performing their jobs at acceptable levels. Although each human resource function can be assigned to one of the four areas of personnel responsibility. the most qualified applicants are selected for hiring from among those attracted to the organisation by the recruiting function. and administer policies and programmes designed to make expeditious use of an organisation’s human resources. some functions serve a variety of purposes. These four areas and their related functions share the common objective of an adequate number of competent employees with the skills. The basic human resource planning strategy is staffing and employee development. It is a method to acquaint new employees with particular aspects of their new job. The compensation function facilitates retention of employees and also serves to attract potential employees to the organisation.Human Resource Management: Context. develop. Research is an important part of this function because planning requires the collection and analysis of information in order to forecast human resources supplies and to predict future human resources needs. On selection. Recruiting is the personnel function that attracts qualified applicants to fill job vacancies. and (3) maximum individual development. Job descriptions are a vital source of information to employees. including pay and benefit programmes. abilities. (2) staffing. and personnel people because job content has a great influence on personnel programmes and practices. organisations often provide training programmes for experienced employees whose jobs are undergoing change. In addition to providing training for new or inexperienced employees. working hours. the number and type of employees needed to accomplish organisational goals are determined. (2) desirable working relationships among all members of the organisation. For example. knowledge. Its objectives are: (1) the effective utilisation of human resources. Staffing: Staffing emphasises the recruitment and selection of the human resources for an organisation. The major functional areas in human resource management are: (1) planning. A brief description of usual human resource functions is given below: Human Resource Planning: In the human resource planning function. such as skills.4 HUMAN RESOURCE FUNCTIONS The role of human resource management is to plan. Human resources planning and recruiting precede the actual selection of people for positions in an organisation. and experience needed for further organisational goals. human resource functionaries are involved in developing and administering methods that enable managers to decide which applicants to select and which to reject for the given jobs. A job description spells out work duties and activities of employees. (3) employee development. Large organisations often have development programmes which prepare employees for higher level responsibilities within the organisation. In the selection function. and experience needed to perform it.

With regard to labour relations. and why records may or may not have been updated. Benefits include both the legally required items and those offered at employer’s discretion. A guide to the action to be taken regarding an employee. turnover. promotion. transfers. although the actual appraisal of employee performance is the responsibility of supervisors and managers. and other employee data. and retrieving employeerelated information for a variety of purposes. iv) A historical record of previous action taken regarding employees. They want to know what is in them.g. seniority lists. Since compensation is a major cost to many organisations. and disciplinary action. tardiness. This function involves recording. Benefits: Benefits are another form of compensation to employees other than direct pay for work performed. The cost of benefits has risen to such a point that they have become a major consideration in human resources planning. the human resource function of administering employee benefits shares many characteristics of the compensation function. since they provide for many basic employee needs. and other aspects of employment. Unions are organisation of employees who join together to obtain more voice in decisions affecting wages. maintaining. benefits are primarily related to the maintenance area. promotions. However. health and medical records. why certain statements have been made. i) ii) The Concept and Functions of Human Resource Management 2 9 . performance appraisal information is essential for employee development since knowledge of results (feedback) is necessary to motivate and guide performance improvements. lay-offs). working conditions. It is related to employee development in that it provides an important incentive in motivating employees to higher levels of job performance and to higher paying jobs in the organisation. Personnel records provide the following: A store of up-to-date and accurate information about the company’s employees. v) The raw material for statistics which check and guide personnel policies. Besides providing a basis for pay. benefits. Labour Relations: The term “labour relations” refers to interaction with employees who are represented by a trade union. Complete and up-to-date employee records are essential for most personnel functions. iii) A guide when recruiting a new employee. Compensation: Human resource personnel provide a rational method for determining how much employees should be paid for performing certain jobs. it is a major consideration in human resource planning. and resolving disputes and grievances. absences. Records which must be maintained include application forms. employment history (jobs held. Career Planning: Career planning has developed partly as a result of the desire of many employees to grow in their jobs and to advance in their career. Record-keeping: The oldest and most basic personnel function is employee recordkeeping. service conditions. As such. Career planning activities include assessing an individual employee’s potential for growth and advancement in the organisation. by showing the rates of pay received by comparable employees. Human resource professionals are usually responsible for developing and administering performance appraisal systems. Pay is obviously related to the maintenance of human resources. the personnel responsibility primarily involves negotiating with the unions regarding wages. earnings and hours of work.Performance Appraisal: This function monitors employee performance to ensure that it is at acceptable levels. Compensation affects staffing in that people are generally attracted to organisations offering a higher level of pay in exchange for the work performed. More than ever employees today have a great interest in their personnel records. particularly by comparing him with other employees. vi) The means to comply with certain statutory requirements. e.

and the like. employee turnover. There is a wide scope for research in the areas of recruitment. Research is not the sole responsibility of any one particular group or department in an organisation. To provide co-ordination and support services for the delivery of HRD programmes and services. and their organisation in particular. To try and relate people and work so that the organisation objectives are achieved effectively and efficiently. HR professionals have an all-encompassing role. research is the most neglected area because personnel people are too busy putting out fires. employee opinions can be gathered on wages. video films. the HR function involves managing change. restructuring plans. diversification plans. It is no longer confined to the culture or ethos of any single organisation. industrial relations. The first and foremost role of HR functionary is to impart continuous education to employees about the changes and challenges facing the country in general. The assistance that can be rendered by trade unions and other organisations should not be ignored. It is impossible to run a personnel programme without some pre-planning and post-reviewing. innovation.Human Resource Management: Context. its keynote is a cross-fertilisation of ideas from different organisations. in most companies. welfare services. To act as an internal change agent and consultant. The primary responsibilities of a human resource manager are: l l l l l l l l l l l 3 0 To develop a thorough knowledge of corporate culture. Through a well-designed attitude survey. in a sense. leadership. however. Inspite of its importance. The HR professionals should impart education to all employees through small booklets. . training. They are required to have a thorough knowledge of the organisation and its intricacies and complexities. For that matter. To initiate change and act as an expert and facilitator. but should be properly made use of. job security. develop or test how HRD in general has improved individual or organisational performance. In a good research approach. and so on. Apart from the above. To actively involve himself in company’s strategy formulation. The employees should know about their balance sheet. Periodic social audits of HR functions are considered essential. and lectures. sharp price movements. Research is not done to put out fires but to prevent them. which however should be assisted by line supervisors and executives at all levels of management. any survey is. To diagnose problems and to determine appropriate solution particularly in the human resources areas. To facilitate the development of various organisational teams and their working relationship with other teams and individuals. To identify and evolve HRD strategies in consonance with overall business strategy. terminations. working conditions. research. sales progress. plans and policies. To evaluate the impact of an HRD intervention or to conduct research so as to identify. Concept and Doundaries Personnel Research: All personnel people engage in some form of research activities. and diversity. the object is to get facts and information about personnel specifics in order to develop and maintain a programme that works. The ultimate goal of every HR person should be to develop a linkage between the employee and the organisation because the employee’s commitment to the organisation is crucial. promotions. turnover and all such details. technology. The initial responsibility is that of the human resource department. To keep communication lines open between the HRD function and individuals and groups both within and outside the organisation.

...... It seeks to achieve the fullest development of human resources and the fullest possible socio-economic development.. to ensure the best and most flexible use of resources and competencies...................... according to Dave Ulrich.. the third........................... To help individuals and groups work in new situations and to expand and change their views so that people in power move from authoritarian to participative models of leadership.......... and the fourth........... To create the smoothest flow of products and services to customers... strategic partner role-turning strategy into results by building organisations that create value.. The first..... and to create commitment among the people who help us to meet customers’ needs whether those people work directly for the organisation or not............................ To assist individuals to add value in the workplace and to focus on the interventions and interpersonal skills for helping people change and sustain change................ values.................. the second........................ Discuss this statement by citing suitable examples from your own organisation............ in particular...................... To facilitate the development and implementation of strategies for transforming one’s own organisation by pursuing values and visions........... The Concept and Functions of Human Resource Management 2) 3) 4) 5) 6) 7) 8) 9) There are four roles which HR play......... faster and cheaper...................... and to recommend long-term strategies to support organisational excellence and endurance....... ................ To identify learning needs and then design and develop structured learning programmes and materials to help accelerate learning for individuals and groups..................... an administrative role-trying to get things to happen better.. To help people assess their competencies........ Its role in organisations has also undergone a substantial change and many organisations have gradually oriented themselves from the traditional personnel management to a human resource management approach........................... and implement development actions.... help it happen fast.......... ........ To design and prepare HR systems and actions for implementation so that they can produce maximum impact on organisational performance and development.... 3 1 ....... an employee champion role-managing the talent or the intellectual capital within a firm..... .......... To assess HRD practices and programmes and their impact and to communicate results so that the organisation and its people accelerate their change and development..... Activity A With business going global and competition becoming intense today HR has travelled a long way from its conventional role as a support function to being a strategic business partner in the present technology leveraged era. and goals so that they can identify.... plan. although many see it as the “old wine in a new bottle. Human resource management has received tremendous attention in recent years............................... a change agent role-making change happen and...................The following are the nine new roles of HR practitioner as suggested by Pat McLegan: 1) To bring the issues and trends concerning an organisation’s external and internal people to the attention of strategic decision-makers.... Its emphasis is not only on production and productivity but also on the quality of life.....” The basic approach of HRM is to perceive the organisation in its totality......

..... paying and treating them fairly. and Others................. Beaumont................... .......... Macmillan... HRD in the New Economic Environment... Profits.. (5) cultural system......... Managing Human Resources: Productivity... M..... The objectives of HRM include getting the organisation right.......... Human resources functions are many and varied and include such things as human resource planning................................. This will also integrate the purposes and processes and make HRM more meaningful........... and employer-employee relations..... Cascio.............. 2........................... 1992. All systems and sub-systems of HRM must be incorporated in the organisation while setting the goals and objectives... there are indications that human resource people will play an increasingly important role in an organisation’s longrange planning and policy-making activities....7 FURTHER READINGS Armstrong. Concept and Doundaries ...... Tata McGraw-Hill Book Company.. W. counselling employees...... Palgrave... recruiting..................... India....... Managing People........... (2) career system.......... most human resource functions are performed by owners or operating managers........ What is “Human Resource Management”? What functions does a human resource department normally perform? Explain the new roles of HR managers...... New York......... New York. Rao...... .........................................Human Resource Management: Context................... London....... (4) work system.. 1994...................... selecting... Purcell J........ Large organisations usually have a human resource or personnel department that is responsible for co-ordinating and directing the human resource functions..... Quality of Work Life............ (3) training system... 2................. The main HRM systems are: (1) appraisal system....... 1999............................... obtaining and developing the right people... training....................................B........... 3 2 .................. and (6) self-renewal system............ 2. 2.. 4.... Successful human resource management is essential to organisational growth and success. Vol. 3.....6 SELF-ASSESSMENT QUESTIONS 1................................. and getting them involved in working productively...V........... In small organisations..................F.................... T.............. .... Boxall P............................. The attainment of these objectives necessitates the performance of several functions.. New Delhi.... 2003......5 SUMMARY The human resources of an organisation represent one of its largest investment.................... In the light of new challenges. 1993...... P.... providing effective motivation and leadership...... McGraw-Hill Book Company... Human Resource Management: Key Concepts and Skills................. .. Strategy and Human Resource Management....... Sage Publications...... Kogan Page.......... compensation management.

3 Importance of HRM 3. components and scope. training.2 Evolution of HRM 3. they need to be collected. discuss the scope and importance of HRM. describe different perspectives on HRM. it must have resources of men (Human Resource). money.1 INTRODUCTION For any organisation to function effectively. Modern concept of HRM has developed through the following stages (Gupta.1 Introduction 3. 3. and appreciate various components of HRM and their role. And. Labour began to be considered a commodity to be bought and sold. b) 3 3 .6 Components of HRM 3.7 Summary 3. Human Resource Management (HRM) has emerged as a major function in organisations. materials and machiner.9 Further Readings 3. 1997). rewarding and maintaining workers. Taylor’s scientific management stressed proper selection and training of employees so as to maximise productivity. The Factor of Production Concept: Employees were considered a factor of production just like land. materials. In this unit. the effective management of human resources is also vital. Guild was a closely knit group concerned with selecting. we will be discussing about the structural aspect of HRM such as evolution. approaches. Hence. Structure 3. The resources by themselves cannot fulfill the objectives of an organisation.UNIT 3 Objectives STRUCTURING HUMAN RESOURCE MANAGEMENT Structuring Human Resource Managemnet After going through this unit. a) The Commodity Concept: Before industrial revolution.8 Self-Assessment Questions 3.5 Perspectives on HRM 3. you should be able to: l l l l trace the evolution of Human Resource Management (HRM).4 Scope of HRM 3.2 EVOLUTION OF HRM HRM activities have probably been performed since ancient times. The pioneering work of Peter Drucker and Douglas McGregor in the 1950s laid its formal foundation. the guild system was the beginning of personnel management. co-ordinated and utilised through human resources. machinery.

professional. Finance Sub-system s s s Material Sub-system s s HRM Sub-system s Technical Sub-system Figure 1: HRM as central subsystem in an organisation Source: Gupta. d) e) f) 3. HRM is emerging as a discipline. The importance of HRM can be discussed at four levels – corporate. Also employers began to provide schemes to workers. Employers assured a fatherly and protective attitude towards their employees. 1997). 1997 As the central sub-system. The quality of human resources determines in turn the success of an organisation. organisational climate. programmes and practices of the HRM sub-system. social and national (Gupta. The Behavioural Human Resource Concept: It aimed at analysing and understanding human behaviour in organisation. 3 4 s s Marketing Sub-system . role of informal groups. Focus shifted towards management practices like two way communication. organisational conflict etc. The Humanitarian Concept: It is based on the belief that employees had certain inalienable rights as human beings and it is the duty of the employer to protect.Human Resource Management: Context. quality circles etc. Unit 2 has discussed the differences between traditional personnel management and emerging HRM. They are given share in company’s stock membership. Hawthorne Experiments of Douglas McGregor also generated considerable interest in human problems of work place. Concept and Doundaries c) The Paternalistic Concept: Employees organised together on the basis of their common interest and formed trade unions to improve. HRM interacts closely and continuously with all other sub-systems of an organisation. The Emerging Concept: Now employers are considered as partners in industry. The quality of people in all sub-systems depends largely upon the policies. Efforts were made to integrate employee with the organisation so that organisational goals and employees aspirations could be achieved simultaneously. Rather social and psychological satisfaction was equally important. Employees began to be considered as valuable assets of an organisation.3 IMPORTANCE OF HRM HRM is the central sub-system of an organisation (Figure 1). management by objectives. became popular under this concept. group dynamics. Slowly and steadily. Unit 1 of this block has dealt in detail the emerging scenario of HRM. Motivation. This is also known as human relations concept.

4 SCOPE OF HUMAN RESOURCE MANAGEMENT According to Dale Yoder. Utilising effectively the available human resources. development. compensation and promotion policies. and establishing and maintaining a suitable organisation for leadership and co-operation. selection. It consists of the following functions: i) Setting general and specific management policy for organisational relationships. orientation. etc. It permits team work among employees by providing a healthy. attitudes and values of its human resources. Maintaining healthy relationships between individuals and different work groups. Eliminating waste of human resources through conservation of physical and mental health. Ensuring that the enterprise will have in future a team of competent and dedicated employees. Countries are underdeveloped because their people are backward. Securing willing co-operation of employees through motivation. 3 5 . grievance handling. Allocating work properly.1) Significance for an Enterprise: Human resource management can help an enterprise in achieving its goals more efficiently and effectively in the following ways: a) Attracting and retaining the required talent through effective human resource planning. etc. It contributes to professional growth in the following ways: a) b) c) Providing maximum opportunites for personal development of each employee. Effective management of human resources helps to speed up the process of economic growth which in turn leads to higher standards of living and fuller employment. placement. physical and financial resources require an efficient and committed manpower. There are wide differences in development between countries with similar resources due to differences in the quality of their people. participation. The effective exploitation and utilisation of a nation’s natural. It helps to enhance the dignity of labour in the following ways: a) b) c) Providing suitable employment that provides social and psychological satisfaction to people. recruitment. Maintaining a balance between the jobs available and the jobseekers in terms of numbers. 3) Social Significance: Sound human resource management has a great significance for the society. qualifications. needs and aptitudes. 4) National Significance: Human resources and their management plays a vital role in the development of a nation. The level of development in a country depends primarily on the skills. Structuring Human Resource Managemnet b) c) d) e) 2) Professional Significance: Effective management of human resources helps to improve the quality of work life. working environment. performance appraisal. Developing the necessary skills and right attitudes among the employees through training. the scope of human resource management is very wide. 3.

An environmental perspective tracks the external forces that continuously come to bear on HR.5 PERSPECTIVES OF HUMAN RESOURCE MANAGEMENT* You can examine the HRM function from several perspectives. etc. creches. C-3 (Human Resource Management). 3) The Industrial Relations Aspect: This is concerned with the company’s relations with the employees. The Indian Institute of Personnel Management has described the scope of human resource management into the following aspects: 1) The Labour or Personnel Aspect: It is concerned with manpower planning. induction. contract administration and grievance handling. The Welfare Aspect: This aspect is concerned with working conditions and amenities such as canteens. Concept and Doundaries ii) Collective bargaining. housing. what follows will cover the recent trends only. medical help. All the above aspects are concerned with human element in industry as distinct from the mechanical element. promotion. rest rooms. health and safety. vi) Reviewing and auditing manpower management in the organisation. washing facilities. negotiating. vii) Industrial relations research—carrying out studies designed to explain employee behaviour and thereby effecting improvement in manpower management. It includes union-management relations. 2) 3. etc. . transport. getting and holding prescribed types and number of workers. recreation and cultural facilities. An international perspective highlights the problems and opportunities that the HRM function has to face in what is fast becoming a global marketplace. selection. 3 6 * Adapted from IGNOU Study material for CEMBA-CEMPA. demotion. education. layoff and retrenchment.Human Resource Management: Context. iv) Aiding in the self-development of employees at all levels providing opportunities for personal development and growth as well as for acquiring requisite skill and experience. an evaluation perspective shows the ways in which human resources activities can be evaluated as to their usefulness in attaining organisational goals. collective bargaining. training and development. contract negotiation. wage and salary administration (remuneration). settlement of industrial disputes. which may not reflect the interests of the organisation. placement. A political perspective shows to what extent and maximise their self interest. and have already looked in some detail at the historical perspective. termination. lunch rooms. etc. A strategic perspective clarifies the role of the HRM function in the strategy of the organisation. incentives. transfer. disciplinary actions. Finally. joint consultation. recruitment. grievance handling. a) Historical Perspective on HRM As the early developments have already been discussed under historical antecedents of HRM. finding. productivity. v) Developing and maintaining motivation for workers by providing incentives. iii) Staffing the organisation. on the evolution of the HRM function.

i. As a 3 7 . the civil rights movement of the 1960s produced a good deal of legislation bearing on employment relationships. organise. Another premise is that. the increase in discrimination-based litigation during the 1970s boosted the legitimacy of the HRM function in organisations. the need to understand the political dynamics that undermine rational HRM decision-making processes. It provided for supervising those relations. and compensate individuals to function in an international marketplace. train. Quite apart from various US-based interventions. the rights of employees to organise and bargain collectively vis-a-vis the rights of the employer and the union. This international competition has led to four conceptual trends in the HRM function: l l Structuring Human Resource Managemnet the need to link human resources to the strategic management process. such as minorities and women) in a wide range of issues concerning employer rights. and control to deal with uncertainty? Organisations should develop a number of strategies. because of a flood of late 20th century laws regulating many broad organisation-to-society matters.Recent Trends The HRM function started getting attention and focus as research began to question the notion that job satisfaction and productivity are strongly related. In view of increasingly and fiercely competitive global markets. the need to select. it is the rise of international competition in a global market that may finally liberate human resources management from second-class status. the critical need for using employees as a competititve resource has become increasingly evident. but the federal laws enacted during the 1960s and 70s dealt more directly with the rights of the individual (or of classes of individuals. ‘Open’ means that organisations are responsive to external pressures and ‘systems’ means that a response by one element in the organisation/environment relationship usually leads to a variety of other responses by the same element or other elements in that relationship.. In the US. Buffering Strategies as an Organisational Response As the environment creates uncertainly. you will note that it dealt extensively with wages and work hours. In the US. They both ease schedules and help managers to figure out the nature of the environmental pressures so that they can try to make sense of them. l l b) Environmental Perspective on HRM The legal environment serves as the filter and as the ultimate mechanism for merging fact and value in society. the need to provide quantitative estimates of the money value contributions made by the human resources department.e. including forecasting and buffering. Further. When you examine legislation enacted during the human relations movement. In addition. how can managers adequately plan. Buffering is concrete: designing structural devices (such as larger or more specialised organistional units) and technological work-flow devices (such as new or more complex procedures). Organisations as Open Systems Katz and Kahn (1978) proposed that organisations be viewed as open systems. these laws are still in force. most organisations are more permeable to external pressures than even before. the environment itself also continues to chantge at a rapid pace. These buffering devices assist the organisation to be both proactive and reactive and to shield itself from the pressures of the environment. Forecasting attempts to anticipate change before it occurs. It also dealt with union-managment relations within the organisation.

and development. they identified four basic HRM sub-functions or strategies: selection appraisal. As a result.’ The first among organisation theories to explicitly discuss the concept of human resources strategies in the context of strategic management were Galbraith and Nathanson.Human Resource Management: Context. One way to reduce the risk of errors is to centralise human resources policymaking and planning activities at the corporate level while continuing to support decentralised decision-making at the unit level. They had to look for more efficient and effective ways to use the resources available to them and stay afloat. defined as ‘the pattern of planned human resource deployments and activities intended to enable an organisation to achieve its objectives. 1982. you are in a sound position to safeguard the organisation. Therefore. c) Strategic Perspective on HRM You have already learned about the various pressures the environment can exert upon the organisation. As this obligation carries with it increased visibility and risk for their function. They recognised the need to fit human resources into the strategy implementation process. rewards. The cost advantage stemmed from lower labour costs and made it nearly impossible for American companies to survive. These have required the organisation to link HR activities to the organisation’s overall strategy. human resources professionals have been seen at times as heroes and at other times as traitors. HRM has to protect or shield the organisation from errors of commission or omission in the management of its human resources. For example. It is at the unit level where you will see more sensitivity to. larger. had to face stiff competition from foreign companies beginning to export their products to the United States at lower prices than US companies could offer. The notion of buffering seems to have been taken up by many organisations in response to actual or potential pressures of the legal environment. more specialised human resources departments handle legal requirements concerning the rights of employees. US firms. Concept and Doundaries manager. The HRM function (or any other function). 3 8 The figure above shows the interdependencies of the major HRM sub-functions. critical interpersonal and intergroup relationships. Once you reasonably assess the strength or potential impact of these pressures and resources for coping with them. and information regarding. The ensuing effort gave rise to the concept of Strategic Human Resources Management (SHRM). Their reaction to this impact demonstrates the ‘open system’ theory of Katz and Kuehn: they have designed a few internal buffering devices of their own. s s Appraisal s Development s . in designing buffering devices. in the ealry 1980s. As they presented the role of human resources in the implementation of organisational strategy. Rewards s Selection s Performance s Figure 2: A Model of the Human Resources Management Function Source: Tichy. you often need more time and information to deal with emerging events. draws on the resources of the organisation and places greater responsibility on that function to meet its organisational obligations.

affect decision outcomes. Influence often consists of seeking to manage how others interpret events and symbolic actions. Selection decisions therefore often revolve around the perceived similarity of an applicant’s skills with the standard. in organisations not all decisions are rational. To assess the fit between the job vacancy and the person being promoted. There is neither a perfect fit nor a rational decisionmaking process. You would have experienced in your work life that there is no objective standard for assessisng fit. as you have probably experienced. the firm must partly rely on past performance evaluations as well as information found through Structuring Human Resource Managemnet 3 9 . all of which can be manipulated. As. or organisation. Politics is defined as ‘the management of shared meaning by individuals. seems to be an area of HRM that is influenced by politics. For example.d) Political Perspective on HRM You will. A sacred principle of performance evaluation is to evaluate performance itself rather than the person in the abstract. Promotion/succession systems are also subject to dynamics or political influence. values and level of effort. as perceived in strategic HRM. and many have very little to do with achieving organisational goals. it is not easy to identify perfectly the skill requirements of a particular job or to assess perfectly an applicant’s level of each of the various skills. Often a discrepancy exists between an individual’s performance and the evaluation result. by now. too. Thus. as well as beliefs. Evaluators do aquire generalised impressions regarding employees’ contributions to their organisation. Applicants usually search company information to assess the ‘type of employee’ that the organisation seeks. have a clear understanding of the strategic perspective on HRM. and promotion/reward systems. it is difficult to define the measure all relevant aspects. particularly with regard to personnel selection. performance appraisal. or at least that they strongly affect that fuction. More specifically. In the real world of HRM. managing the perceptions of the decision maker can allow the applicant an opportunity to influence the decisionmaking process in a political manner. market-oriented strategy will attempt to come across as quite aggressive in the interview. the performance evaluation process can appear to be mostly subjective. Employees’ behaviours. in fact. An applicant wishing to join an organisation that publicises its aggressive. Firms may prefer to fill managerial positions within the ranks to provide motivation. However. Performance evaluation. It is the inability to assess fit perfectly in an objective manner that lets politics enter the decision-making process. in most jobs. What is meant by politics in HRM is that individuals or groups attempt to exert influence over others for purposes and in ways that are not approved or sanctioned by the organisation. The same applicant wishing to join a firm that promotes its team atmosphers and group cohesiveness is likely to act significantly less aggressively in an effort to appear to fit that organisation. the process of ‘impression management’ in the employment interview is an example of politics in HRM.’ This view of politics allows you to better understand the role of influence in HRM. it appears that interviewees who exhibit controlling tactics such as self-prmotion and efforets to dominate the interview prove more successful than those who act passive or submissive. can easily influence the impressions of evaluators. and this difference stems out of political influence. the objective of which is rational decision-making that aligns HRM practices with the organisation’s strategic goals. Recent writers in HRM propose that influence and politics are a significant part of the HRM function. Recent research has demonstrated that attempts to bring influence to bear on the employment interview do. groups.

evaluations have revealed that practice tends to be primaily guided by an ethnocentric view of the world. how does one manage a company’s citizens working overseas? Secondly.Human Resource Management: Context. Therefore programmes featuring international management and cross-cultural training have increased in value. The other concern – the influence of culture on HR practices – has created more awareness among academics and HR practitioners. anecdotal and empirical data show very convincingly that these processes are part and parcel of organisations. Also related to the issue of managing one’s citizens in a foreign setting is the problem of adequate compensation for them.) to learn the human resources compared with US practices. how do organisational management policies and practices in other cultures differ from those in the respective home countries? Expansion of production facilities outside US borders. China. for instance. education of the manager’s children. Transnational representation: globally competitive organistions must have multinational representation among their managerial employees. The 1987 conference on international personnel and human resources management held at the National University of Singapore was showcase for the work of academic researchers who had applied a number of methods in various Pacific Rim countries (Japan. has occurred over the same years. for instance. e) Interpersonal Perspective on HRM For many years there has been increasing international competition. payment of tax if required. In effect what happened was that US firms capitalised on Mexico’s lower labour costs by building production facilities there. and the US. Corporations are meeting this challenge. As a means of keeping production costs down for the automotive industry. and increased emphasis on quality of work life (QWL). A revolution in management practices. Mexico. many overseas facilities must be established. Firstly. When there are joint ventures in foreign countries. Taiwan. its HRM function mut be characterised by: 1) 2) 3) 4 0 Transnational scope: going beyong a simple national or regional perspective and making human resources decisions with a global perspective. You have already seen how these processes are affected by political influence. by paying allowances for housing. and today most large corporations in the US. Transnational process: a decision making process that involves representatives and ideas from variety of cultures. thererfore. The foremost challenge for firms going overseas is the need to select and train individuals who are able to work in a foreign culture. he headed the fight to set up the North American Free Trade Agreement (NAFTA) which created the world’s largest free trade zone by virtually eliminating trade barriers among Canada. Although many may not want to acknowledge the existence of political influence in organisations. However. You would be interested to know that inspite of these efforts to gain an understanding of human resources practices in Pacific Rim countries. particularly the US dollar. with the effect that two general concerns are being addressed by many American and European companies. Concept and Doundaries interviews and other means. In order to compete internationally. Europe and Japan function in a global economy. to ignore their existence is short-sighted. need to have a good understanding of the foreign culture concerned. provides HRM concerns for the American companies. . For a firm to be competitive these days. Lee Iacocca turned more and more to setting up plants outside America. This arises out of the volatility of major foreign currencies. etc. cost of living adjustments etc. In 1993. US firms.

activities like preparing job descriptions and providing career counselling are long-term activities critical to the effectiveness of the organisation. they may seem to resist efforts at efficiency improvement. it attempts to assess how well the function is serving the organisation in helping achieve short. pay and look after the health. is associated with an internal valuefree assessment of the function. It provides the base for recruitment programmes and for human resource development plans.6 COMPONENTS OF HRM The following are the major components of HRM (Sarma. organisational development programmes and interventions are needed to achieve better integration. motivate human resource. or effective and efficient: the desired status. in terms of their expertise. Human Resource Planning: Human resource planning sets out to define how many people the organisation wants. Moreover. Human Resource Organisation: Human resource organisation is concerned with achieving success by organisation design and development. the functional audit. appraise. Human Resource Systems: Human resource systems are the essential programmes needed to recruit. 3. Effectiveness may involve biases of people because people decide what the right things are. seeks to measure the function’s effectiveness. In the short run. which has two components: a procedural audit and a functional audit. Efficiency may be determined from short-term activities such as personnel functions. improve teamwork. It is internal to the HR department and represents a measure of the function’s efficiency. The ideal is to strike an optimal mix.and long-term goals. Some researchers have demonstrated how human resources can be subjected to ‘utility analysis’ that leads to determining the money value of HRM activities to the organisation. Efficiency. The former focusses on the activities performed by members of the HR department and the amount of time spent on each. by contrast. safety and well-being of the employees in the organisation. ‘Is HRM doing the right things?’ whereas efficiency ‘doing things right’ in the sense of maximising outputs relative to inputs. employment. the application of effective leadership. 1998). and obtain commitment. For instance. In other words. how fast were personnel requisitions filled? However. effective but inefficient. The main key programmes are: 4 1 . The fundamental objective of human resource organisation is to ensure that every aspect of the organisation. develop proper leadership. motivation. In judging effectiveness we ask. The human resource organisation programme has to take account of cultural issues so that the desired corporate culture can be developed or reinforced. ineffective and inefficient. The latter. the type of people the organisation needs at present and in the future. motivation.f) Evaluation Perspective on HRM Two criteria are usually used to assess the quality of an enterprise’s HRM function: efficiency and effectiveness. It involves the forecasting of both the supply and demand for future labour. facilitate communication system. and management of people is integrated with the strategic objectives of the business and contribute to the successful achievement of those objectives. and the process of getting across the message about what the enterprise is setting out to do and how it proposes to do it. The HRM function can be judged efficient but ineffective. manage conflict and change. Structuring Human Resource Managemnet Personnel Audits and Utility Analysis One popular approach to assessing HRM function is called the personnel audit. and how they “fit” the corporate culture.

and collaboration among different subunits are strong and contribute to the organisational health. Furthermore.” HRD is a series of organised activities conducted within a specified time and designed to produce behavioural change. reviewing progress to date and assessing the potential for advancement. and performance coaching or counselling. They . and (d) the organisation as an open system. attitudes. Information management: It is a method of ensuring that all policies and practices are to be well articulated and effectively communicated to the workforce. and (b) to strengthen management and professional teams at all organisational levels. Concept and Doundaries a) b) Recruitment management: It is a process of obtaining the required human resource for an organisation. rituals and sanctions in an organisation. There are three main appraisal systems such as performance appraisal. in a continuous planned way to: (a) acquire or sharpen capabilities required to perform various tasks and functions associated with their present or expected future roles. Culture management: It is a system of thinking and behaving shaped by the values.Human Resource Management: Context. In this respect HRD is more a proactive and supportive function wherein the organisation has to take a lead in helping the people to grow and realise their potential role. dynamism and pride of employees. team-work. All aspects of training and appraisal playa significant role in achieving the individual’s growth and development. Focus on all these aspects is what HRD all about. and (c) develop an organisational culture where superior-subordinate relationship. preparation of a training strategy. (c) the improved quality output as a result of increased responsibility. c) d) e) f) g) i) Human Resource Development (HRD): Lippit (1978) points out that HRD as a system depends on: (a) the work itself which generates a higher degree of responsibility for the employees. It has two main purposes: (a) to provide employees with a greater opportunity to grow and succeed within a company. Reward management: It is a method to ensure that people are rewarded in accordance with their contribution. and an appropriate training system. Rao (1985) defines HRD as “a process by which the employees of an organisation are helped. and performance appraisal. (b) the individual’s personal and professional growth. education and development. it aims at developing employee capabilities in line with their career interests and with the manpower needs of the company. 4 2 Human resource development programmes help to ensure that the organisation has the people with the skills and knowledge it needs to achieve its strategic objectives. (h) Discipline management: It is a system of administering discipline to foster positive employee behaviour that will promote organisational objectives. Career management: It is a system of charting special career paths for the individual employees for advancement in the organisation. Performance management: It is a technique of appraising performance systematically against defined criteria. (b) develop their general enabling capabilities as individuals so that they are able to discover and exploit their own inner potentials for their own and/or organisational development purposes. It is rooted in the belief that human beings have the potential to do better. HRD as a function consists of various activities related to training. Health and safety management: It is a system of maintaining a healthy and safe system of work in an organisation. potential appraisal. Training management: It is a system of identification of training needs.

(b) work to create participative cultures and to dissolve autocratic and dependent mindsets. Development can be defined as the modification of behaviour through experience. middle management level. It provides for people to do better in the existing jobs and prepares them for greater responsibility in the future. and consultants. it is clear that the HRD community must accelerate the trends that have just begun. HRD practitioners will be the process designers. Training fills the gap between what someone can do and what he should be able to do. They must: (a) ensure that all people practice and support continuous development. Their main aim is to increase co-operation and trust and to involve employees actively in the company’s affairs. both traditional fonns of joint consultation as well as the Japanese import of quality circles. HRD is an important force for the future. Management normally gets the union it deserves. business managers. (c) help prepare people and institutions to succeed in a rapidly changing global village. Structuring Human Resource Managemnet 4 3 . (c) the type of procedures one can adopt to regularize relationships with unions. The necessary techniques must be evolved for encouraging mutuality and working together in the interests of all. and ensures that the organisation has the expertise it needs. It also deals with problem-solving techniques.” These fundamental human relations values provide the base for productivity management programmes. researchers. Instead of doers. There is a gap and the means have to be found to bridge that gap. (d) treat their employees like customers for enduring success of the organisation. treat them as partners. which use techniques such as method study to improve efficiency. The thrust of human resource development is on training and development. learning and high performance. treat them with dignity. and treat them with respect. to achieve productivity through people. Its first aim is to ensure that. relationships with unions often involve confrontations. Whether or not unions exist. Training then builds on this foundation by enhancing skills and knowledge as required to improve performance in the present job or to develop the potential for the future. Human Resource Utilisation: According to Peters and Watennan. Development operates at all levels . An approach to collective dealing should be: (a) the recognition of the union.aim to train new employees to the level of performance required in their jobs quickly and economically and to develop the abilities of existing staff so that performance in their present jobs are improved and they are prepared to take on increased responsibilities in the future.shop floor level. particularly to solve problems relating to disciplinary cases and grievances. There are two sides to a dispute in most organisations: the management and the workers. advisors. Unions have to be managed like everything else in an organisation. it is highly desirable for the management to develop methods of dealing with employees collectively. It builds on strengths and helps to overcome weaknesses. it is very essential to “treat them as adults. the results for the organisation can be disastrous. (d) the basic techniques of negotiating with unions. and top management level covering executives and non-executives. (e) the mechanism of involvement through participation. (b) the respective role perfonnance of management and union. as quickly as possible. It is a dynamic process which aims at improving the skills and talents of the personnel. Both managers and workers must be persuaded somehow to realise that they have a common interest in increasing output. people can reach an acceptable level in their jobs. strategists. Looking ahead to the 21 st century. If it handles unions the wrong way. Human Resource Relationships: Human resource relationships deal with the handling of employees individually and collectively asmembers of trade unions or staff associations. Nonetheless. The challenges to HRD will continue.

bonus and profit-sharing schemes. the auditor has to deal with individuals vis-a-vis organisational priorities. Similarly. Human Resource Audit: The purpose of a human resource audit is to assess the effectiveness of the human resource function and to ensure regulatory compliance. Auditing in the field of human resources is a difficult job. To gain success. Explain different perspectives on HRM. As discussed in this unit. the scope of HRM is very wide and there are four perspectives on HRM. its objective.8 SELF-ASSESSMENT QUESTIONS 1) 2) 3) 4) Trace the evolution of HRM. training and developing employees and judging their economic value to the organisation. HRA can also provide data pertaining to turnover costs. (h) negotiate appropriate productivity agreements. Human Resource Accounting (HRA): HRA means accounting for people as the organisational resource. he has to be very selective about the area and procedure he wishes to follow. for organisation’s members as well as for the nation. Therefore. (e) improve motivation. Its origin can be traced back to Taylore and McGregor age. It is the measurement of the cost and value of people to organisations and involves measuring the costs incurred on recruiting.Human Resource Management: Context. Discuss the importance and scope of HRM. and (i) introduce training programmes based on an analysis of productivity needs. Human resource audit is a vast subject and covers many delicate aspects of human and organisational interactions. Hence. hiring. selecting. (f) involve employees in improvement programmes. (c) introduce work measurement. For instance. whether it is recruitment and selection or replacement of an employee. The job of the HR auditor is not an easy one. more so because unlike other audits. performance of its human resources. as well as the proper maintenance of HRD climate and practices. (b) improve manpower budgeting and control techniques. the cost of employee’s absence and its impact on performance of others. the HR auditor is required to be very systematic in his job and define the task clearly as to which arena he has to cover. HRA can be very useful in managerial decision-making. 4 4 . Concept and Doundaries The following actions are required to improve the use of human resources: (a) conduct a productivity drive. 3. 3. HRM is important for organisations. HRA can provide an estimate of the cost involved in the process. (d) use appropriate payment method by results. (g) introduce new technology.7 SUMMARY HRM has emerged as a major function in organisations. Today employee’s position in the organisations has changed. it can help the management in budgeting for development of human resources. Managing human resources is one of the key elements in the co-ordination and management of work organisations. Describe the components of HRM. HRM is carried out in an organisation with the help of number of components it has. The HRD auditor has to study the organisation design.

3.9 FURTHER READINGS
Yoder, Dale (1977). Personnel Management and Industrial Relations, Prentice Hall of India, New Delhi. Indian Institute of Personnel Management (1973). Personnel Management in India, Asia Publishing House, Mumbai. Sarma, A.M. (1998). Personnel and Human Resource Management, Himalaya Publishing House, New Delhi. Tripathi, P.C. (2004). Personnel Manament and Industrial Relations, Sultan Chand & Sons, New Delhi. Katz, R. and Kahn, R. (1978). The Social Psychology of Organisation, Wiley, New York. Galbraith, J. and Nathonson, R. (1978). Strategy Implementation: The Role of Structure and Process, St. Paul, Minnesota. Tichy, N.N. (182). Strategic Human Resource Management, Sloan Management Review.

Structuring Human Resource Managemnet

4 5

ASSESSMENT CENTRES, 360 DEGREE APPRAISAL AND CAREER & SUCCESSION PLANNING

INTRODUCTION

This unit deals with mechanisms of performance & potential appraisals and ways and means employed by organizations to provide growth opportunities to employees. Nobody wants to work in dead end job. Employees aspire to grow and expect this growth to take place at frequent intervals

ASSESSMENT CENTRES

Employees are not contended by just having a job. They want growth and individual development in the organization. “Assessment centre” is a mechanism to identify the potential for growth. It is a procedure and not a location that uses a variety of techniques to evaluate employees for manpower purposes and decisions. Assessment centers are a more elaborate set of performance simulation tests, specifically designed to evaluate a candidate’s managerial potential. Line executives, supervisors, and/or trained psychologists evaluate candidates as they go through one to several days of exercises that simulate real problems that they would confront on the job. Based on a list of descriptive dimensions that the actual job incumbent has to

meet, activities might include interviews, in-basket problem-solving exercises, leaderless group discussions, and business decision games. For instance, a candidate might be required to play the role of a manager who must decide how to respond to ten memos in his/her in-basket within a two-hour period. Assessment centers have consistently demonstrated results that predict later job performance in managerial positions.

The American Telephone and Telegraph Company (AT&T) began experiments with Assessment Centre approach in the 1950’s as a part of a wide programme of management development. The AT&T Company designated a particular building where the Assessments were carried out. This building became known as Assessment centre and the name has stuck as a way of referring to the method. The method became established in the industry in the USA during the 1960’s and 1970’s and was introduced in UK during this period. This method is now regarded as one of the most accurate and valid assessment procedures and is widely used for selection and development.

According to IPMA (The International Personnel Management Association), an assessment center consists of a standardized evaluation of behavior based on multiple inputs. They are used to assess the strengths, weaknesses and potential of employees.

The specific objective is to reinforce strengths, overcome weaknesses and exploit potential of the employees through training & developmental efforts. Several trained observers and techniques are used. Judgments about behavior are made, in major part, from specifically developed assessment simulations. These judgments are pooled in a meeting among the assessors or by a statistical integration process. In an integration discussion, comprehensive accounts of behavior, and often ratings of it, are pooled. The discussion results in evaluations of the performance of the assessees on the dimensions/ competencies or other variables that the assessment center is designed to measure. There is a difference between an assessment center and assessment center methodology. Various features of the assessment center methodology are used in procedures that do not meet all of the guidelines set forth here, such as when a psychologist or human resource professional, acting alone, uses a simulation as a part of the evaluation of an individual. Such personnel assessment procedures are not covered by these guidelines; each should be judged on its own merits. Procedures that do not conform to all the guidelines here should not be represented as assessment centers or imply that they are assessment centers by using the term “assessment center” as part of the title. The following are the essential elements for a process to be considered an assessment center:

a. Job Analysis
A job analysis of relevant behaviors must be conducted to determine the dimensions, competencies, attributes, and job performance indices important to job success in order to identify what should be evaluated by the assessment

center. The type and extent of the job analysis depend on the purpose of assessment, the complexity of the job, the adequacy and appropriateness of prior information about the job, and the similarity of the new job to jobs that have been studied previously. If past job analyses and research are used to select dimensions and exercises for a new job, evidence of the comparability or generalizability of the jobs must be provided. If job does not currently exist, analyses can be done of actual or projected tasks or roles that will comprise the new job, position, job level, or job family. Target dimensions can also be identified from an analysis of the vision, values, strategies, or key objectives of the organization. Competencymodeling procedures may be used to determine the dimensions/ competencies to be assessed by the assessment center, if such procedures are conducted with the same rigor as traditional job analysis methods. Rigor in this regard is defined as the involvement of subject matter experts who are knowledgeable about job requirements, the collection and quantitative evaluation of essential job elements, and the production of evidence of reliable results. Any job analysis or competency modeling must result in clearly specified categories of behavior that can be observed in assessment procedures. A “competency” may or may not be amenable to behavioral assessment as defined herein. A competency, as used in various contemporary sources, refers to an organizational strength, an organizational goal, a valued objective, a construct, or a grouping of related behaviors or attributes. A competency may be considered a behavioral dimension for the purposes of assessment in an assessment center if i. it can be defined precisely

ii.

Expressed in terms of behaviors observable on the job or in a job family

and in simulation exercises. iii. A competency also must be shown to be related to success in the target job

or position or job family.

b.

Behavioral Classification
Assessment centre requires that Behaviors displayed by participants must be classified into meaningful and relevant categories such as dimensions, attributes, characteristics, aptitudes, qualities, skills, abilities,

competencies, and knowledge.

c.

Assessment Techniques
The techniques used in the assessment center must be designed to provide information for evaluating the dimensions previously determined by the job analysis. Assessment center developers should establish a link from behaviors to competencies to exercises/assessment techniques. This linkage should be documented in a competency-by exercise/ assessment technique matrix.

d.

Multiple Assessments
Multiple assessment techniques must be used. These can include tests, interviews, questionnaires, sociometric devices, and simulations. The

assessment techniques are developed or chosen to elicit a variety of behaviors and information relevant to the selected competencies/ dimensions. Self-assessment and 360 degree assessment data may be gathered as assessment information. The assessment techniques will be pre-tested to ensure that the techniques provide reliable, objective and relevant behavioral information. Pre-testing might entail trial

administration with participants similar to assessment center candidates, thorough review by subject matter experts as to the accuracy and representativeness of behavioral sampling and/or evidence from the use of these techniques for similar jobs in similar organizations.

e.

Simulations
The assessment techniques must include a sufficient number of job related simulations to allow opportunities to observe the candidate’s behavior related to each competency/dimension being assessed. At least one—and usually several—job related simulations must be included in each assessment center. A simulation is an exercise or technique designed to elicit behaviors related to dimensions of performance on the job requiring the participants to respond behaviorally to situational stimuli. Examples of simulations include, but are not limited to, group exercises, in-basket exercises, interaction (interview) simulations, presentations, and factfinding exercises. Stimuli may also be presented through video based or virtual simulations delivered via computer, video, the Internet, or an

intranet. Assessment center designers also should be careful to design exercises that reliably elicit a large number of competency-related behaviors. In turn, this should provide assessors with sufficient opportunities to observe competency-related behavior.

f.

Assessors
Multiple assessors must be used to observe and evaluate each assessee. When selecting a group of assessors, consider characteristics such as diversity of age, sex, organizational level, and functional work area. Computer technology may be used to assess in those situations in which it can be shown that a computer program evaluates behaviors at least as well as a human assessor. The ratio of assessees to assessors is a function of several variables, including the type of exercises used, the dimensions to be evaluated, the roles of the assessors, the type of integration carried out, the amount of assessor training, the experience of the assessors, and the purpose of the assessment center. A typical ratio of assessees to assessors is two to one. A participant’s current supervisor should not be involved in the assessment of a direct subordinate when the resulting data will be used for selection or promotional purposes.

g.

Assessor Training
Assessors must receive thorough training and demonstrate performance that meets requirements prior to participating in an assessment center. The

training should focus on processing of information, drawing conclusions, interview techniques and understanding behaviour.

h.

Recording Behavior
A systematic procedure must be used by assessors to record specific behavioral observations accurately at the time of observation. This procedure might include techniques such as handwritten notes, behavioral observation scales, or behavioral checklists. Audio and video recordings of behavior may be made and analyzed at a later date.

i.

Reports
Assessors must prepare a report of the observations made during each exercise before the integration discussion. It is suggested that assessors must prepare the report immediately after the assessment is over otherwise they are likely to forget the details. Not only this, these reports must be independently made.

j.

Data Integration
The integration of behaviors must be based on a pooling of information from assessors or through a statistical integration process validated in accordance with professionally accepted standards. During the integration discussion of each dimension, assessors should report information derived from the assessment techniques but should not report information

both internal and external can be assessed for suitability to those specific posts. Organizational Planning . Methods of combining assessors’ evaluations of information must be supported by the reliability of the assessors’ discussions.irrelevant to the purpose of the assessment process. The integration of information may be accomplished by consensus or by some other method of arriving at a joint decision. Diagnosis of training and development needs It offers a chance to establish individual training and development needs while providing candidates with a greater appreciation of their needs. b. d. Recruitment and promotion Where particular positions which need to be filled exist. Computer technology may also be used to support the data integration process provided the conditions of this section are met. c. Early identification of personnel The underlying rationale here is the need for the organization to optimise talent as soon as possible. Uses of Assessment Centres Data generated during the process of Assessment can become extremely useful in identifying employee potential for growth. This data can be used for a. High potential people also need to be motivated so that they remain with the organization.

In some cases we can even find assessment centres that are so developmental in their approach that most of the assessment work done is carried out by the participants themselves and the major function of the centre is to provide the participants with feedback that is as much developmental as judgmental in nature. recently we have seen a definite shift in thinking away from this traditional view of an assessment centre to one which stresses the developmental aspect of assessment. A consequence of this is that today it is very rare to come across an assessment centre which does not have at least some developmental aspect to it. Increasingly assessment centres are stressing a collaborative approach which involves the individual actively participating in the process rather than being a passive recipient of it.Assessment centers can be used to identify area where widespread skill deficiencies exist within organizations. Assessment Centres and Development Centres Traditionally an assessment centre consisted of a suite of exercises designed to assess a set of personal characteristics. Results can also be integrated with human resource planning data to provide additional information concerning number of people with particular skills needed to meet future needs. It was seen as a rather formal process where the individuals being assessed had the results fed back to them in the context of a simple yes/no selection decision. However. . so that training can be developed in these areas.

adaptability and flexibility. The fact that a set of exercises is used demonstrates one crucial characteristic of an assessment centre . The particular competencies used will depend upon the target job but one should also learn such competencies such as relating to people. planning and organising. The theory behind this is that if one wishes to predict future job performance then the best way of doing this is to get the individual to carry out a set of tasks which accurately sample those required in the job. Differences between Assessment and Development Centres The type of centre can vary between the traditional assessment centre used purely for selection to the more modern development centre which involves self-assessment and . communication. resistance to stress. Various combinations of these exercises and sometimes other assessment methods like psychometric testing and interviews are used to assess particular competencies in individuals. problem solving.namely that it is behaviour that is being observed and measured. decision making and initiative.Assessment centres typically involve the participants completing a range of exercises which simulate the activities carried out in the target job. This represents a significant departure from many traditional selection approaches which rely on the observer or selector attempting to infer personal characteristics from behaviour based upon subjective judgment and usually precious little evidence. This approach is rendered unfair and inaccurate by the subjective whims and biases of the selector and in many cases produces a selection decision based on a freewheeling social interaction after which a decision was made as whether the individual's 'face fit' with the organisation. leadership. motivation.

Development Centres grew out of a liberalization of thinking about assessment centres. While assessment centres were once used purely for selection and have evolved to have a more developmental flavour. it is impossible to draw a line between assessment and development centres because all centres. b. It is easier to think about assessment centres as being equally to do with selection and development because a degree of assessment goes on in both. The end result of this is that it is not possible to talk about assessment or development centres in any but the most general terms. they both involve assessment and it is only the end use of the information obtained which is different i. d. one for selection and one for development. be they for assessment or development naturally lie somewhere on a continuum somewhere between the two extremes. While one hears centres being called assessment or development centres assessment goes on in both and to that extent they are both assessment centres. a.e.whose primary purpose is development. the language used to describe them has not. Another problem with using the assessment . Most assessment centres involve at least some development and most development centres involve at least some assessment. This means that it is very rare to find a centre devoted to pure assessment or pure development. c.development dichotomy is that at the very least it causes us to infer that little or no assessment goes in development centres. A number . One might ask the question 'Why group assessment and development centres together if they have different purposes?' The answer to that question is threefold.

Assessment Centres involve line managers as assessors while Development Centres do not have line managers as assessors f.of differences between assessment and development centres exist are presented below: a. Assessment Centres have fewer assessors and more participants while Development Centres have a 1:1 ratio of assessor to participant e. Assessment centres are geared towards filing a job vacancy while Development centres are geared towards developing the individual c. Assessment Centres focus on what the candidate can do now while Development Centres focus on potential . Assessment Centres address an immediate organisational need while Development Centres address a longer term need d. Assessment centres have a pass/fail criteria while Development centres do not have a pass/fail criteria b. Assessment Centres have less emphasis placed on self-assessment while Development Centres have a greater emphasis placed on self-assessment g.

l. . j. Assessment Centres place emphasis on selection with little or no developmental while Development Centres place emphasis on developmental feedback and follow up with little or no selection function. n.h. Assessment Centres assign the role of judge to assessors while Development Centres assign the role of facilitator to assessors. Assessment Centres give feedback at a later date while Development Centres involve the individual having control over the information obtained. Assessment Centres tend to be used with external candidates while Development Centres tend to be used with internal candidates. Assessment Centres have very little pre-centre briefing while Development Centres have a substantial pre-centre briefing. m. Assessment Centres feedback and follow up while Development Centres give feedback immediately. i. k. Assessment Centres are geared to meet the needs of the organisation while Development Centres are geared to meet needs of the individual as well as the organization.

"360 could be of use to an organization that truly believes that performance can be improved by changing individual behavior and a key reason the desired behavior(s) is not occurring is that many people People who are chosen as raters are usually those that interact routinely with the person receiving feedback. vision. The most effective processes provide feedback that is based on behaviors that other employees can see. the process enables an individual to integrate feedback into his or her self-image. full-circle appraisal. multi-source feedback. Other names for 360 degree feedback are multi-rater feedback. and suppliers. colleagues.360 degree feedback is a method and a tool that provides each employee the opportunity to receive performance feedback from his or her supervisor and four to eight peers. The feedback is firmly planted in behaviors needed to exceed customer expectations. By contrasting self-evaluation results with feedback culled from others through 360 degree feedback. fellow members of project teams. goals and values.360 DEGREE APPRAISAL The 360 degree feedback process involves collecting perceptions about a person’s behavior and the impact of that behavior from the person’s boss or bosses. and group performance review" . co-worker. subordinates and customers. The purpose of the feedback is to . direct reports. 360 degree feedback allows each individual to understand how his effectiveness as an employee. The feedback provides insight about the skills and behaviors desired in the organization to accomplish the mission. internal and external customers. or staff member is viewed by others.

c. co-workers. Improved Feedback from More Sources: Provides well-rounded feedback from peers. Features of 360 degree appraisal Organizations that are using with the 360 degree component of their performance management systems identify following positive features of the process. This can be a definite improvement over feedback from a single individual. use the feedback. to contribute insights into aspects of his or her work needing professional development. select the feedback tool and process. 360 feedback can also save . These features will manifest themselves in well-managed. d. review the feedback. assist each individual to understand his or her strengths and weaknesses b. select the raters. These are basically concerned with how to: a. reporting staff. well-integrated 360 degree processes. a.a. b. and supervisors. and e. Following are some of the major considerations in using 360 degree feedback. manage and integrate the process into a larger performance management system.

Additionally. biases because of varying reasons are . Personal and Organizational Performance Development: 360 degree feedback is one of the best methods for understanding personal and organizational developmental needs. b. e. Multirater feedback makes team members more accountable to each other as they share the knowledge that they will provide input on each members’ performance. Reduced Discrimination Risk: When feedback comes from a number of individuals in various job functions. Team members know more about how other members are performing than their supervisor. Co-worker perception is important and the process helps people understand how other employees view their work. Multirater feedback can provide excellent information to individuals about what they need to do to enhance their career. organizations per se are no longer responsible for developing the careers of theiremployees. more reflective of their performance.managers’ time in that they can spend less energy providing feedback as more people participate in the process. c. many employees feel 360 degree feedback is more accurate. A well-planned process can improve communication and team development. and more validating than feedback from the supervisor alone. Team Development: Helps team members learn to work more effectively together. Responsibility for Career Development: For many reasons. This makes the information more useful for both career and personal development. d.

g.reduced. Benefits of 360 degree Appraisal Following benefits of 360 degree Appraisal accrue to the individual. Individuals can better manage their own performance and careers e. and comprehensiveness of these products and services to his/her customers. This feedback should enable the individual to improve the quality. promptness. reliability. The judgemental errors of the supervisors are eliminated as the feedback comes from various sources. It uncovers blind spots c. This process helps individuals to understand how others perceive them b. It provides feedback that is essential for learning d. Such programmes add value to the contribution made by the individual employee. Each person receives valuable feedback about the quality of his product or services. f. Improved Customer Service: Feedback process involves the internal or external customer. team and organization: To the individual a. Quantifiable data on soft skills is made available. Training Needs Assessment: Multirater feedback provides comprehensive information about organization training needs and thus helps in mounting relevant training programmes. .

It supports teamwork by involving team members in the development process e. b. . It improves customer service by having customers contribute to evaluation e. It creates better team environment as people discover how to treat others and how they want to be treated d. It reinforces corporate culture of openness and trust.To the team: a. It facilitates the conduct of relevant training programmes. It increased team effectiveness To the organization: a. It provides better opportunities for career development for employees c. d. Employees get growth and promotional opportunities. It generates higher levels of trust and better communication as individuals identify the causes of breakdowns c. It increases communication between team members b.

It ensures more stable workforce by reducing labour turnover and absenteeism e. and plans practical developmental activities. Career planning seeks to achieve the following objectives: a. It utilizes the managerial talent available at all levels within the organization .CAREER PLANNING Career is viewed as a sequence of position occupied by a person during the course of his lifetime. Career may also be viewed as amalgam of changes in value. and their willingness to be trained and developed for higher positions c. as a person grows older. considers alternative career opportunities. establishes career goals. It maps out careers of employees suitable to their ability. The implicit assumption is that an individual. Through career planning. a person evaluates his or her own abilities and interests. The process by which individuals plan their life’s work is referred to as career planning. attitude and motivation that occur. can make a difference in his destiny over time and can adjust in ways that would help him to enhance and optimize the potential for his own career development Career planning is important because it would help the individual to explore. It ensures better use of human resources through more satisfied and productive employees d. It attracts and retains the right persons in the organization b. choose and strive to derive satisfaction with ones career object.

f. abilities. b. and knowledge. they should manage their own careers like entrepreneurs managing a small business. The successful career will be built on maintaining flexibility and keeping skills and knowledge up to date. It provides guidance and encouragement to employees to fulfill their potential i. . It helps in achieving higher productivity and organizational development The essence of a progressive career development program is built on providing support for employees to continually add to their skills. Clearly communicating the organization’s goals and future strategies. c. On the part of employees. They should think of themselves as self-employed. This support from organisation includes: a. Providing the time for employees to learn. Offering financial assistance. d. h. It ensures that promising persons get experience that will equip them to reach responsibility for which they are capable. It improves employee morale and motivation by matching skills to job requirements and by providing job opportunities for promotion g. They should freely participate in career planning activities and must try to get as much as possible out of the opportunities provided. Creating growth opportunities.

f. This also includes an entrepreneurial spirit. They want to create or build something that is entirely their own. They are briefly presented below: a. b. e. They often see themselves tied to a particular organization or geographical location. Security: The anchor for security-conscious individuals is to stabilize their career situations. Functional competence: The anchor for technicians is the continuous development of technical talent. They are particularly found to play a significant role amongst younger generation choosing professions. c. They value autonomy and want to be their own boss and work at their own pace. These individuals often readily accept change and therefore are very adaptable. analytical. These individuals do not seek managerial positions. . and emotional competence. They are called career anchors because they become the basis for making career choices. Creativity: Creative individuals are somewhat entrepreneurial in their attitude.Career anchors Some recent evidence suggests that six different factors account for the way people select and prepare for a career. Managerial competence: The career goal of managers is to develop qualities of interpersonal. d. Autonomy and independence: The career anchor for independent people is a desire to be free from organizational constraints. Technological competence: There is a natural affinity for technology and a desire to work with technology whenever possible. People using this anchor want to manage people.

They might even choose the option of leaving the organization.Career Planning Process It is obvious from the foregoing analysis that individuals differ a great deal in term of their career orientation . Organization also on the other hand differ in term of career path and opportunities that they can provide given the reality of their internal and external environments . In either case. priorities. and aspiration. individual difference in values. The possibility of conflict between the individual-organization objective calls for career planning efforts which can help identify areas of conflict and initiate such action as necessary to resolve the conflict . gives rise to situation of potential conflict. The difference between what the employees look for in their career progression and what career growth opportunities the organization is able to provide.The career system available in organizational depend on their growth potential. A general approach to career planning would involve the following steps: . If the conflict is allowed to persist.The career orientation is influenced by the preference for a particular career anchor. the employee will experience dissatisfaction and withdraw from being actively engaged in the productive pursuit . the life cycle stage. goals. goals and priorities. Career planning thus involves matching of rewards and incentives offered by the career path and career structure with hope and aspiration of employees regarding their own concept of progression. the organization is not able to optimally utilize the potential contribution of its employee towards the achievement of its goal.

Mechanism for identifying congruence between individual career aspiration and organizational career system must develop so as to enable the organization to discuses cases of mismatch or incongruence. c. and may not be aware of the aspiration and career anchor .a. b. Some of the strategies adopted by several organization include the following : ♦ change in the career system by creating new career path . On the basis of analysis. d.Many individual may not be aware of their own career progression path as such information may be confined to only select group of managers.new rewards . Most organization assume the career aspiration of individual employee which need not be in tune with the reality . .The individual may not have a clear idea of their short and long term career and life goals . Analysis of the characteristic of the reward and incentives offered by the prevailing career system needs to be done and made know to employee . new goals. it will be necessary to compare and identify specific area of match and mismatch for different categories of employee. new aspiration or by helping the employees to scale down goal and aspiration that are unrealistic or unattainable for one reason or the other. Alternative strategies for dealing with mismatch will have to be formulated. by providing challenge trough job redesign opportunities for lateral movement and the like ♦ change in the employees hopes and aspirations by creating new needs. Analyse the characteristic of the hopes and aspirations of different categories of employee including the identification of their career anchor must be done trough the objective assignment. new incentives .

negotiation or other devices. develop. It is a plan that managers can follow. which spells out the particular steps to be followed to achieve the mission. and/or department. Reviewing career plans A periodic review of career plans is necessary to know whether the plans are contributing to the effective utilization of human resources by matching employee objectives to job needs. division. implement. ♦ A framework of career planning process aimed at integrating individual and organizational needs is presented. goals.♦ Seek new basis of integration. The continued existence of an organization over time require a succession of persons to fill key position . and customize to meet the needs of their organisation.The purpose of succession planning is to identify and develop . compromise or other form of mutual change on the part of employee and organizational trough problem solving. Review will also indicate to employee in which direction the organizations is moving. in order to ensure a continuity of leadership for all critical positions. what changes are likely to take place and what skills are needed to adapt to the changing needs of the organization. e. and retain a talent pool of employees. SUCCESSION PLANNING Succession planning is an ongoing process that identifies necessary competencies. and initiatives identified in workforce planning. Succession planning is a specific strategy. then works to assess.

For example. Similarly complete dependence on outside talent may cause stagnation in the career prospects . managers and supervisor in every department are usually asked to identify three or four best candidate to replace them in their jobs should the need arise.. the organization may find it necessary to search for talent from outside in certain circumstance. Complete dependence on internal source may cause stagnation for the organization. Some of these reasons are given below: • • • • • Superannuation: Employees retiring because they reach a certain age. when it is planning to launch a major expansion or diversification programmes requiring new ideas etc. Succession can be from within or from outside the organization. They should look inward to identify potential and make effort to groom people to higher and varied responsibilities. However. Creation of new position: Employees getting placed in new positions at the same level. when qualified and competent people are not available internally.people to replace current incumbents in key position for a variety of reasons. Succession by people from within gives a shared felling among employee that they can grow as the organizational grows. Resignation: Employees leaving their current job to join a new job Promotion: Employees moving upward in the hierarchy of the organization. Diversification: Employees being redeployed to new activities. Therefore organization needs to encourage the growth and development with its employee. In some professionally run large organizations.

(1990) 4. but also focusing on the quality of the candidates. New Delhi 2. It is a tool to meet the necessary staffing needs of an organization/department.. C. and develop a talent pool of individuals who are willing and able to fill positions when needed. K. Succession planning provides managers and supervisors a step-by-step methodology to utilize after workforce planning initiatives have identified the critical required job needs in their organization. References: 1.: “Personnel Management”. evaluate. Gupta. New Delhi .: “Human Resource Management and Human Relations” (1998). “Human Resource Management”(1997). J. New Delhi 5. Rustom: “The Human side of Management”. V.P. Sultan Chand & Sons. Jucius Micheal. and enables managers and supervisors to assess. Aswathappa. Himalaya Publishing house. through addressing competencies and skill gaps.(1995) Richard Irwin 6.: Personnel Administration in India. Himalaya Publishing House.(1994) Progressive Corporation 3. Ghosh. P.of the individual within the organization which may in turn generate a sense of frustration. Succession planning is pro-active and future focused.: “Human Resource and Personnel Management”. Micheal. Davar.B. taking not only quantity of available candidates into consideration.

: “Human Resource Management”(3rd Ed. New Delhi 8.7.). Mirza S. Mirza S. New Delhi . Tata McGraw-Hill. Tata McGrawHill. Monappa.2003. Arun & Saiyadain. Saiyadain.: “Personnel Management” (1996).

Performance Planning and Review INTRODUCTION Performance appraisal helps organizations to determine how employs can help achieve the goals of organizations. The greater the output for a given input. First has to do with determining the performance and other with the process of evaluation. Performance What does the term performance actually mean? Employees are performing well when they are productive. It has two important activities included in it. Effectiveness refers to goal accomplishment. Efficiency evaluates the ratio of inputs consumed to outputs achieved. 1 .). It is mot desirable to have objective measures of productivity such as hard data on effectiveness. That is where efficiency comes in. the greater the efficiency. a. or percent of crimes solved etc and hard data on efficiency (average cost per unit or ratio of sales volume to number of calls made etc. However it does not speak of the costs incurred in reaching the goal. Productivity implies both concern for effectiveness and efficiency. number of units produced.

On the basis of these judgments we assess the worth or value of others and identify what is good or bad. performance also includes personnel data such as measures of accidents. promotion. Besides they aid in personnel research. and by minimizing the number of work-related accidents. Employees also wish to know their position in the organization. b. Assessment To evaluate is to assess to worth or value. wage and salary administration etc. traits and performance of others. Appraisals are judgments of the characteristics. by not missing days.In addition to productivity as measured in terms of effectiveness and efficiency. turnover. In industry performance appraisal is a systematic evaluation of employees by supervisors. absences. That is a good employee is one who not only performs well in terms of productivity but also minimizes problems for the organisation by being to work on time. and tardiness. Performance appraisal helps to identify those who are 2 . transfer. training. Appraisals are essential for making many administrative decisions: selection. Performance Appraisal thus is a systematic and objective way of judging the relative worth of ability of an employee in performing his task.

Too often.performing their assigned tasks well and those who are not and the reasons for such performance. These performance standards should also be clear and objective enough to be understood and measured. The appraisal process begins with the establishment of performance standards. The expectations a manager has in term of work performance by the subordinates must be clear enough in their minds so that the managers would be able to at some later date. THE APPRAISAL PROCESS Following Steps are involved in appraisal process:1. to communicate these expectations to their subordinates and appraise their performance against these previously established standards. Once performance standards are established. it is necessary to communicate these expectations. It should not be part of the employees’ job to guess what is expected of them. these standards are articulated in some such phrase as “a full day’s work” or “a good job. Unfortunately. These should have evolved out of job analysis and the job description.” Vague phrases tell us nothing. 3 . 2.

statistical reports. It is important to note that communication is a two-way street. Mere transference of information from the manager to the subordinate regarding only expectations takes place is not the communication. it is necessary to acquire information about it.too many jobs have vague performance standards. Therefore feedback is necessary. and written reports. Each has its strengths and weaknesses. however. transference of Communication when information has taken place and has been received and understood by subordinate. To determine what actual performance is. 3. We should be concerned with how we measure and what we measure. Four common sources of information are frequently used by mangers to measure actual performance: personal observation. 4 . The Third step in a appraisal process is measurement of performance. Hence the information communicated by the manager has been received and understood in the way it was intended. oral reports. The problem is compounded when these standards are not communicated to the employees. a combination of them increases both the number of input sources and the probability of receiving reliable information.

One of the most challenging tasks facing managers is to present an accurate appraisal to the subordinate and then have the subordinate accept the appraisal in a constructive manner. What we measure determines. conveying good news is considerably less difficult than conveying the bad news that performance has been below expectations. on their subsequent performance. very important. Of course. the discussion of 5 . to a great extent. The attempt in this step is to note deviations between standard performance and actual performance. The criteria we choose to measure must represent performance as stated in the first two steps of the appraisal process. The impression that subordinates receive about their assessment has a strong impact on their self-esteem and. The fourth step in the appraisal process is the comparison of actual performance with standards.What we measure is probably more critical to the evaluation process than how we measure. The selection of the wrong criteria can result in serious dysfunctional consequences. what people in a organization will attempt to excel at. 4. Thus.

e. c. Immediate action corrects something right now and gets things back on track.” In summary the performance process has following steps:a. 6 . one is immediate and deals predominantly with symptoms. Basic action asks how and why performance deviated. managers may rationalize that they do not have the time to take basic corrective action and therefore must be content to “perpetually put out fires. where as basic corrective action gets to the source of deviation and seeks to adjust the differences permanently. In some instances. Discuss the appraisal with employees. Immediate corrective action is often described as “putting out fires”. If necessary. b. Communicate performance expectations to employees. 5. d. initiate a corrective action. Measure actual performance. Corrective action can be of two types. The other is basic and delves into causes. The final step in the appraisal is the initiation of corrective action when necessary. Establish performance standards.the appraisal can have negative as well as positive motivational consequences.

Performance evaluation should serve as a vital component. properly designed performance appraisals should also serve as a means of assisting an employee’s personal development. In a simplistic rendition each employees work should support the activities on his or her supervisor’s performance objectives. work that assists in meeting department goals. Knowing what is expected is a first step in helping one to cope better with the stress usually associated with a lack of clear direction. sound performance appraisals can assure that correct work is being done. one that is of interest to both the organization and the employee. Secondly. From the organizational perspective. This should ultimately continue up the hierarchy. 7 . properly operating performance appraisal systems provide a clear communication of work expectations.GOALS OF PERFORMANCE APPRAISAL Conducting performance appraisals on employee’s performance should be more than a simple checklist of Do’s and Don’ts. From the employee perspective. with all efforts supporting corporate strategic goals.

To make effective performance appraisals a reality. d. e. These are given below:a. d. Realistic goals must be mutually set. b. c. To audit the skills within an organizations. 8 . Supervisors need to enter performance appraisals with a constructive and helpful attitude. To assess training needs. OBJECTIVES OF PERFORMANCE APPRAISAL Performance appraisal has a number of specific objectives. b. To review past performance. Employees should be actively involved in the evaluation and development process. These are: a. four criteria need to be present. c. Supervisors must be aware. To set targets for future performance. and have knowledge of the employee’s job and performance. To help develop individuals.

Even if the more positive objectives are built into the system. problems may still arise because they may not all be achievable and they may cause conflict.f. Some employees may believe that performance appraisal is simply used by the organization to apportion blame and to provide a basis for disciplinary action. To identify potential for promotion. new directions and opportunities. Not only should the objectives be clear but also they should form part of the organization’s whole strategy. It is therefore important that performance appraisal should have specific objective. or which might be perceived as leading to disciplinary action. They see it as a stick that management has introduced with which to beat people. For Example. 9 . Thus incorporating objectives into the appraisal system may highlight areas for improvement. Under such situations a well thought out performance appraisal is doomed to failure. an appraise is less likely to be open about any shortcomings in past performance during a process that affects pay or promotion prospects.

a. Expectations and long-term plans can be developed. for appraiser and for appraisee. 10 . These are for the organization. Identification of ideas for improvement. e. Improvement in the tasks performed by each member of the staff. Training and development needs can be identified more clearly. A culture of continuous improvement and success can be created and maintained.BENEFITS OF APPRAISAL The benefits of an effective appraisal scheme can be summed up under three categories. Improved performance throughout the organization due to more effective communication of the organization’s objectives and values. For the Organizations: following benefits would accrue to the organization. c. increased sense of cohesiveness and loyalty and improved relationships between managers and staff. b. d. f. 1.

The opportunity to clarify expectations of the contribution the manager expects from teams and individuals. Identification of ideas for improvements. e. c. The opportunity to re-prioritize targets. The opportunity to link team and individual objectives and targets with departmental and organizational objectives. 11 .g. d. A means of forming a more productive relationship with staff based on mutual trust and understanding. f. For the appraiser: The following benefits would accrue to the appraiser:a. The opportunity to develop an overview of individual jobs and departments. People with potential can be identified and career development plans requirements. can be formulated for future staff 2. b.

a. For the appraisee : for the appraisee the following benefits would accrue. not vaguely defined 12 . What the appraiser does is write down little anecdotes that describe what the employee did that was especially effective or ineffective. Increased motivation. Increased sense of personal value. c. Increased job satisfaction. 1. A number of methods are now available to assess the performance of the employees. In this approach to appraisal. b. Critical incident appraisal focuses the rater’s attention on those critical or key behaviors that make the difference between doing a job effectively and doing it ineffectively. specific behaviors are cited. APPRAISAL METHODS This section looks at how management can actually establish performance standards and devise instruments that can be used to measure and appraise an employee’s performance. Critical Incident Method.3.

the evaluator uses a bit of behavioral descriptions and checks of those behaviors that apply to the employee. Additionally. judge performance rather than personalities. with their focus on behaviors. a list of critical incidents on a given employees provides a rich set of examples from which the employee can be shown which of his or her behaviors are desirable and which ones call for improvement.” but that does not tell anything about how well the job is being done. Supervisor are reluctant to write these reports on a daily or even weekly basis for all of their subordinates as it is time consuming and burdensome for them b. This method suffers from following two drawbacks:a. It is one thing to say that an employee is “aggressive” or “imaginative or “relaxed. A behaviorally based appraisal such as this should be more valid than trait-based appraisals because it is clearly more job related. Checklist In the checklist.personality traits. 2. The 13 . Critical incidents do not lend themselves to quantification. Therefore the comparison and ranking of subordinates is difficult. Critical incidents.

honesty. this methods is most valid when abstract traits like loyalty or integrity are avoided unless they can be defined in more specific behavioral terms. or someone from the personnel department can provide the feedback to the subordinate. loyalty. Graphic Rating Scale One of the oldest and most popular methods of appraisal is the graphic rating scale.evaluator merely goes down the list and gives “yes” or “no” responses. They are used to assess factors such as quantity and quality of work. attitudes. However. he/she merely records it. it is usually evaluated by the staff of personnel department. The assessor goes down the list of factors and notes that point along the scale or continuum that list of factors and notes that point along the scale or continuum 14 . The final evaluation can then be returned to the rating manager for discussion with the subordinate. integrity. not the rater himself. 3. attendance. dependability. An analyst in the personnel department then scores the checklist. Therefore the rater does not actually evaluate the employee’s performance. Once the checklist is complete. cooperation. job knowledge. often weighting the factors in relationship to their importance. and initiative etc.

To reduce bias.that best describes the employee. There is greater standardization of items so comparability with other individuals in diverse job categories is possible. In the design of the graphic scale. bias is introduced. They are less time-consuming to develop and administer. c. but the rater has to choose between two or more statements. Should ambiguity occur. Following are some of the advantages of this method:a. b. the challenge is to ensure that both the factors evaluated and the scale pints are clearly understood and unambiguous to the rater. Forced Choice Method The forced choice appraisal is a special type of checklist. 4. all of which may be favorable or unfavorable. Someone in the personnel department scores the answers based on the key. The appraiser’s job is to identify which statement is most (or in some cases least) descriptive of the individual being evaluated. There are typically five to ten points on the continuum. the right answers are not known to the rater. This key should be validated 15 . They permit quantitative analysis.

b. Since the appraiser does not know the “right” answers. It looks at over all performance. Behaviorally Anchored Rating Scales These scales combine major elements from the critical incident and graphic rating scale approaches: The appraiser rates the employees based on items along continuum. The final group of behavior 16 . Those that are sorted into the dimension for which they were generated are retained.so management is in a position to say that individuals with higher scores are better-performing employees. observable. The major advantages of the forced choice method are:a. and measurable job behavior. Behaviorally anchored rating scales specify definite. it reduces bias. c. Examples of job-related behavior and performance dimensions are generated by asking participants to give specific illustrations on effective and ineffective behavior regarding each performance dimension. These behavioral examples are then retranslated into appropriate performance dimensions. but the points are examples of actual behavior on the given job rather than general descriptions or traits. It is based on the behavior of the employees. 5.

of course. Group Order Ranking The group order ranking requires the evaluator to place employees into a particular classification. four must also be relegated to the bottom fifth. This method has following advantages: a. the next 15 percent. and handles emergency situations. such as anticipates. The results of the above processes are behavioral descriptions. The 17 . It clarifies to both the employee and rater which behaviors connote good performance and which connote bad. b. It does tend to reduce rating errors. The incidents that are retranslated and have high rater agreement on performance effectiveness are retained for use as anchors on the performance dimension.” Evaluators are asked to rank the employees in the top 5 percent. 6. carries out orders. only four can be in the top fifth and.incidents are then numerically scaled to a level of performance that each is perceived to represent. It assesses behavior over traits. solves immediate problems. plans. executes. such as “top one-fifth” or “second one-fifth. c. the next 5 percent. So if a rater has twenty subordinates.

three in the second quarter. It has following disadvantage:a. is the “zero-sum game”: consideration. if the evaluator is looking at only four employees. if two of the workers in the third or fourth quartiles leave the department and are not replaced. The sixth-best employee. then our sixth best employee now fit into the third quarter. and low quarter! b. Another disadvantage. Ironically. would be in the second quartile. It is not good if the number of employee being compared is small. Because comparison are relative. an employee who is mediocre may score high only because he or she is the “best 18 . third quarter. At the extreme. it is very possible that they may all be excellent. if there are twelve employees in a department performing at different levels of effectiveness. which plagues all relative measures. any change must add up to zero. and so forth. c. yet the evaluator may be forced to rank them into top quarter. second quarter. three are in the top quarter. by definition. For example. for instance. This means.advantage of this method is that it prevent raters from inflating their evaluations so everyone looks good or from homogenizing the evaluations for everyone is rated near the average outcome that are usual with the graphic rating scale.

with each of the other nine. an excellent performer who is matched against “stiff” competition may be evaluated poorly. Individual Ranking The individual ranking method requires the evaluator merely to list all the employees in an order from highest to lowest. Only one can be the “best. when in absolute terms his or her performance is outstanding. If ten people are being evaluated. 8. A score is obtained for each employee by simply counting the number of pairs in which the individual is the preferred member. It ranks each individual in relationship to all others on a one-on-one basis. 7. Paired comparison The paired comparison method is calculated by taking the total of [n (n-1)]/2 comparisons. in turn. Each of the remaining nine persons.of the worst” Similarly. the first person is compared. and the number of items this person is preferred in any of the nine pairs is tabulated. is 19 .” If the evaluator is required to appraise thirty individuals ranking method carries the same pluses and minuses as group order ranking.

the organization’s overall objectives are used as guidelines from which departmental and individual objectives are set. self-control. 20 . At the individual level. and a ranking is evolved by the greatest number of preferred “victories”. This method ensures that each employee is compared against every other.compared in the same way. These goals are agreed upon and then become the standards by which the employee’s results will be evaluated. In goal setting. action planning. Management By Objectives Management by objectives (MBO) is a process that converts organizational objectives into individual objectives. 9. but the method can become unwieldy when large numbers of employees are being compared. and periodic reviews:- a. It can be thought of as consisting of four steps: goal setting. the manager and subordinate jointly identify those goals that are critical for the subordinate to achieve in order to fulfill the requirements of the job as determined in job analysis.

Self-control refers to the systematic monitoring and measuring of performance. estimating the time requirement for each activity. the means are determined for achieving the ends established in goals setting. with periodic progress reviews.b. The MBO philosophy is built on the assumptions that individuals can be responsible. these manager-subordinate reviews are conducted in a constructive rather than punitive manner. can exercise self-direction. d. and do not require external controls and threats of punishment. consistent with MBO philosophy. corrective action is initiated when behavior deviates from the standards established in the goal-setting phase. This step includes identifying the activities necessary to accomplish the objective. c. establishing the critical relationships between these activities. Reviews are not meant to degrade the individual but to aid in 21 . realistic plans are developed to attain the objectives. That is. Finally. Ideally. by having the individual review his or her own performance. In action planning. and determining the resources required to complete each activity. Again.

It assists the planning and control functions and provides motivation. These reviews should take place at least two or three times a year. peers and internal or external customers. They then meet with their own supervisor and 22 . subordinates. 360 degree appraisal Many organizations have expended the idea of upward feedback into what they call 360 degree appraisal. The feedback is generally used in training and development rather than pay increase. 10. Here performance information is collected all around from his or her supervisors. b. Employees have a greater commitment to objectives that they have participated in developing than to those unilaterally set by their bosses. The individualized reports are presented to person being rated.future performance. It is result –oriented. Following are the advantages of MBO:a. c. self. Employees know exactly what is expected of them and how they will be evaluated.

Appraisal reports serve as spring board for discussion. One of the fallout effects of this dyadic interaction is the identification of training needs. b. Both negative and positive feedbacks are communicated. c. It focuses on behavior rather than on the individual. PERFORMANCE COUNSELING AND POTENTIAL APPRAISAL The main objective of performance counseling is to help the employee to overcome his weaknesses and to reinforce his strengths. 23 .sometimes with their subordinates and share the information they feel is relevant for the purpose of developing a self improvement planed. Counseling provides an opportunity to the supervisor to give feedback to the subordinate on the performance and performance related behavior. Feedback can be an effective tool provided: a. In this sense it is a developmental process where the supervisor and the subordinate discuss the past performance with a view to help the subordinate to improve and become more effective in future. In other words it should be descriptive and not evaluative. It is not just an opinion but is backed by data.

It is timely. Delayed feedback is neither helpful nor effective. The Following are some of the important ones:a. It should be devoid of all discussions on salary. it might be seen as criticism which may further deteriorate the relationship. d. details are forgotten and recall may be jeopardized by distortions. On the other hand. c. Any discussion on compensation changes the focus from performance improvement to the relationship between performance and reward. A climate of openness and trust is necessary. The counselor should be tactful and helpful rather than critical and fault finding. reward and punishment. The focus should be on the work-related problems and difficulties rather than personality or individuals likes.d. e. When people are tense and hostile. 24 . attempts should be made to counsel and help rather than be critical. dislikes or idiosyncrasies. b. The subordinate should feel comfortable to participate without any hesitation or inhibition. Several conditions for effective counseling are identified. As time passes.

This provides an environment for the subordinate to talk about his part of the story first. Or they may question their judgments and decisions which may lead to argument.Since counseling is a difficult activity. Many supervisors are hesitant to initiate performance counseling sessions because the subordinates may raise uneasy questions for which they may not have answers. One major outcome of performance counseling is identification of the potential of the employee’s skills and abilities not known and 25 . The skill required to do well in these situations is often referred to as the use of non-directive technique. The essential feature is to provide an employee an opportunity to talk and share his experience which the supervisor should be able to listen and then process and provide feedback to him. A sample of non-directive technique could be to start the interview by asking “tell me how you think you are doing”. It is a methodology of generating information and using this information to help employees. That is why there is a need to train supervisors in the techniques of counseling sessions. the supervisor should be specially trained is social competence to handle these aspects of his job. debate and misunderstanding.

Potential appraisal is different from performance appraisal as the latter limits evaluation to what the subordinate has done on the job (or his performance) whereas the former on the other hand. The organizations are able to identify individuals who can take higher responsibilities. Availability of such opportunities has tremendous motivational value.utilized by the organization. seeks to examine what it that the subordinate can do is. Hence. It also helps in 26 . particularly potential appraisal is to help employees to move upwards in the organization. CAREER PATH One of the important objectives of appraisal. Most HRM practitioners favor restructuring of a job to provide reasonably long and orderly career growth. It also conveys the message that people are not working in dead-end jobs in the organization. The distinct advantage of a thoroughly carried out potential appraisal are given below:a. b. People do not like to work on dead-end jobs. a career ladder with clearly defined steps becomes an integral component of human resources management. Career path basically refers to opportunities for growth in the organization.

job remaining more or less the same. Those where designations changes to a higher level position. b. It is a method which uses a 27 . status and better benefits and working conditions. but the nature of job (teaching and research) remains the same.designing salary structures. where an assistant professor may grow to became associate professor and a professor. In many engineering organizations. identifying training needs and developing second line in command. Career paths can be of two kinds: a. an employee may grow in the same line with increased responsibilities or may move to other projects with different job demands. Those where changes in position bring about changes in job along with increased salary. better salary and benefits and perhaps less load and better working condition. A good example of this is found in teaching institutions. One important mechanism to identify the promotability of employees is Assessment Centre. Career path in such situations means a change in status.

variety

of

technique

to

evaluate

employees

for

manpower

requirements in the organization. It uses situational tests including exercises requiring participants to prepare written reports after analyzing management problem, make oral presentations, answer mail or memo in in-basket situation and a whole lot of situational decision making exercises. Assessors observe the behavior and make independent reports of their evaluation of the strengths and weaknesses of the attributes being studied.

PROBLEMS IN APPRAISAL
While it is assumed that performance appraisal process and techniques present an objective system it would be naïve to assume, however, that all practicing managers impartially interpret and standardize the criteria upon which their subordinates will be appraised. In spite of our recognition that a completely error-free performance appraisal can only be idealized a number of errors that significantly impede objective evaluation. Some of these errors are discussed below:-

28

1. Leniency Error
Every evaluator has his/her own value system that acts as a standard against which appraisals are made. Relative to the true or actual performance an individual exhibits, some evaluators mark high and others low. The former is referred to as positive leniency error, and the latter as negative leniency error. When evaluators are positively lenient in their appraisal, an individual’s performance becomes overstated; that is rated higher than it actually should. Similarly, a negative leniency error understates performance, giving the individuals as lower appraisal.

2. Halo Effect
The halo effect or error is a tendency to rate high or low on all factors due to the impression of a high or low rating on some specific factor. For example, if an employee tends to be

conscientious and dependable, the supervisor might become biased toward that individual to the extent that he will rater him/her high on many desirable attributes.

29

3. Similarity Error
When evaluators rate other people in the same ways that the evaluators perceive themselves they are making a similarity error. Based on the perception that evaluators have of themselves, they project those perceptions onto others. For example, the evaluator who perceives him self or herself as aggressive may evaluate others by looking for aggressiveness. Those who demonstrate this characteristic tend to benefit, while others are penalized.

4. Low Appraiser Motivation
What are the consequences of the appraisal? If the evaluator knows that a poor appraisal could significantly hurt the employee’s future particularly opportunities for promotion or a salary increase the evaluator may be reluctant to give a realistic appraisal. There is evidence that it is more difficult to obtain accurate appraisals when important rewards depend on the results.

5. Central Tendency
It is possible that regardless of whom the appraiser evaluates and what traits are used, the pattern of evaluation remains the same. It is also possible that the evaluator’s ability to appraise objectively

30

and accurately has been impeded by a failure to use the extremes of the scale, that is, central tendency. Central tendency is the reluctance to make extreme ratings (in either directions); the inability to distinguish between and among ratees; a form of range restriction.

6. Recency Vs. Primacy Effect
Recency refers to the proximity or closeness to appraisal period. Generally an employee takes it easy for the whole year and does little to get the punishment. However, comes appraisal time, he becomes very active. Suddenly there is an aura of efficiency, files move faster, tasks are taken seriously and the bosses are constantly appraised of the progress and problems. All this creates an illusion of high efficiency and plays a significant role in the appraisal decisions. The supervisor gets railroaded into believing that the employee is alert and hence, rates him high. In reality through it refers only to his two to three month’s performance.

The opposite of recency is primancy effect. Here the initial impression influences the decision on year end appraisal

irrespective of whether the employee has been able to keep up the

31

initial impression or not. First impression is the last impression is perhaps the most befitting description of this error.

EFFECTIVE PERFORMANCE APPRAISAL
The issues raised above essentially focus on the problems of reliability and validity of performance appraisal. In other words, how do we know whether what is appraised is what was supposed to be appraised. As long as appraisal format and procedure continues to involve subjective judgment, this question cannot be fully answered and perhaps, will not be answered completely because no matter how objective a system is designed it will continue to be subjective. Perhaps, the following steps can help improve the system. a. The supervisors should be told that performance appraisal is an integral part of their job duties and that they themselves would be evaluated on how seriously they have taken this exercise. b. To help them do this task well, they should be provided systematic training on writing performance reports and handling performance interviews.

32

c. Conduct

job

evaluation

studies

and

prepare

job

descriptions/roles and develop separate forms for various positions in the organization. d. Design the system as simple as possible so that it is neither difficult to understand nor impossible to practice e. Generally after the appraisal interview the employee is left alone to improve his performance on the dimensions. The supervisor should monitor now and then whether the improvement in performance in the areas found weak is taking place or not and, if not, help the employee to achieve the required improvement. f. Finally, reviewing, the appraisal systems every now and then help updating it, and making suitable evolutionary changes in it. This is the most important factor in making performance appraisal effective. As time passes changes in technology and work environment necessitate changes in tasks, abilities and skills to perform these tasks. If changes in the format are not incorporated the reports may not generate the kind of date needed to satisfy appraisal objectives.

33

In addition, following can also help in improving the effectiveness of an appraisal

Behaviorally Based Measures
The evidence strongly favors behaviorally based measures over those developed around traits. Many traits often considered to be related to good performance may, in fact have little or no performance relationship. Traits like loyalty, initiative, courage, reliability, and self-expression are intuitively appealing as desirable characteristics in employees. But the relevant question is, Are individuals who are evaluated as high on those traits higher performers than those who rate low? Traits like loyalty and initiative may be prized by managers, but there is no evidence to support that certain traits will be adequate synonyms for

performance in large cross-section of jobs. Behaviorally derived measures can deal with this objection. Because they deal with specific examples of performance-both good and bad, they avoid the problem of using inappropriate substitutes.

34

Ongoing Feedback
Employees like to know how they are doing. The annual review, where the manager shares the subordinates evaluations with them, can become a problem. In some cases, it is a problem merely because managers put off such reviews. This is particularly likely if the appraisal is negative. The solution lies in having the manager share with the subordinate both expectations and disappointments on a day-today basis. By providing the employee with frequent opportunities to discuss performance before any reward or punishment consequences occur, there will be no surprises at the time of the annual formal review. In fact, where ongoing feedback has been provided, the formal sitting down step should not be particularly traumatic for either party.

Multiple Raters
As the number of raters increase, the probability of attaining more accurate information increases. If rater error tends to follow a normal curve, an increase in the number of raters will tend to find the majority congregating about the middle. If a person has had ten supervisors, nine having rated him or her excellent and one poor, we can discount the value of the one poor evaluation.

35

Peer Evaluations
Periodically managers find it difficult to evaluate their subordinates’ performance because they are not working with them every day. Unfortunately, unless they have this information, they may not be making an accurate assessment. One of the easiest means is through peer evaluations. Peer evaluations are conducted by employees’ co-workers, people explicitly familiar with the jobs involved mainly because they too are doing the same thing, they are the ones most aware of co-workers’ day to-day work behavior and should be given the opportunity to provide the management with some feedback.

The main advantages to peer evaluation are that (a) there is tendency for co-workers to offer more constructive insight to each other so that, as a unit, each will improve; and (b) their recommendations tend to be more specific regarding job behaviorsunless specificity exists, constructive measures are hard to gain.

36

Robbins. Pvt. Ltd.(2004) Performance Management and Appraisal Systems HR Tools for global competitiveness New Delhi. (2002) Human Resource Management Delhi. Dessler. 2.V. Pearson Education.References: 1. David. 3.. (2003) Human Resource Management (3rd Edition) New Delhi Tata McGraw Hill Publishing Company Limited. A(1993) Human Resource Management New Delhi. Saiyadain. Prentice Hall of India Pvt. Stephen P. T. Response Books. Gary. Fisher. Ltd. 37 . Martin(1996) Performance Appraisals London: Kogon Page. Rao. Mirza S. 5. De Cenzo. 4.

13 Summary 4.2 4. discuss the concept of Job Description and Job Specification.11 Different Work Systems 4.6 4.15 Further Readings 4.9 Introduction Purpose and Definition of Job Analysis The Focus of Job Analysis: Positions and Jobs The Importance of Job Analysis Methods of Job Analysis Job Description and Job Specification Techniques of Collecting Information for Job Analysis Techniques of Writing Job Descriptions Job Design 4. By linking HR activities through a common language and framework. by reflective the values and mission of the organization and by establishing clear expectations of performance for employees integrates HR practices.12 The Current Picture 4. These qualities range from personality characteristics and abilities to specific skills and knowledge. identify techniques of collecting information for JA.5 4.1 4.7 4. Job analysis helps to understand the qualities needed by employees. and describe the process of Job Design and effects of work flow on people. discuss the methods of JA. many organizations are moving rapidly to embrace a new approach to the management of human resource (HR) process. learning and development at activities of employees. you should be able to: l l l l l l define Job Analysis (JA).8 4. to provide optimum work performance. and with a new appreciation for the value of their human resources.10 Effects of Work Flow on People 4. Structure 4.3 4. defines business strategy of the organization and maximizes the delivery of its services to clients. Modern Job analysis address development through the 5 . defined through behavioral descriptors.14 Self Assessment Questions 4.UNIT 4 Objectives JOB ANALYSIS AND JOB DESIGN Job Analysis and Job Design After completion of the unit. The critical role of modern job analysis is in guiding.1 INTRODUCTION Emerging from years of downsizing and restructuring.4 4. understand the process of JA.

values and business priorities into results. The linkage positions in an organization provides a roadmap and tool for translating the organization’s mission. 1991).” It has also been defined as “a collection of position similar enough to one another in terms of their work behaviors to share a common job title “(Harvey. 1979) as “work consisting of responsibilities and duties that are sufficiently a like to justify being covered by a single job analysis. . In its simplest terms. The importance of job analysis has been well-established for years. dating back to at least the First World War. etc. training. The purpose of this input is to clearly define the context and status of Job Analysis as an HR approach. functional job analysis and the job element method. includes a description of the context and principal duties of the job. What an individual brings to the job. a job analysis is a systematic process for gathering. such as recruitment. Job analysis helps ensure that decisions made with respect to HR processes are good decisions i. agencies to ensure a more collaborative and focused approach to the implementation. and What the gaps (learning and development needs) are. A job analysis provides an objective picture of the job. selection of the right person for the job. It is hoped that this unit will serve as the common platform on the basis of which key decisions can be taken by departments. and information about the skills. mental models and techniques for job analysis.g.e. and reflected through a job description. provides fundamental information to support all subsequent and related HR activities.) and its helps ensure the defensibility of decisions made to employee (resulting in good HR management) and to the courts (resulting in saving of costs. makes up a “job. The data collected in a job analysis. performance management. time and reputation). which focuses on generalized human behaviors and interviews.” In fact.2 PURPOSE AND DEFINITION OF JOB ANALYSIS Job analysis is the fundamental process that forms the basis of all human resource activities.. fair and accurate (e. representing the collection of duties assigned to a single person. performance management and succession planning. Job analysis serves two critical functions with respect to these processes. each of which is interchangeable with the others in terms of work activities.. The United States government’s Uniform Guidelines on Employee Selection Procedures (1978) and the American Psychological Association’s Principles for the Validation and use of Personnel Selection Procedures stipulate that job analysis is essential to the valediction of any and all major human resources activities. task inventories. and as such. not the person performing the job. These include the Position Analysis Questionnaire.Getting Human Resources provision of tools for employees that address: l l l What it takes to do a job. 4.3 THE FOCUS OF JOB ANALYSIS : POSITIONS AND JOBS 6 The unit of study in job analysis may be position or a job. appropriate decisions about training. a “job” has been defined (Henderson. situate its use within the organization and describe the issues that need to be addressed with respect to its growing application across departments and agencies. development. documenting and analyzing date about the work required for a job. One or more similar positions. A “position” is the most basic structural entity in the organization. 4. development. responsibilities.

the issue of comparable worth has also contributed to a new interest in job analysis. job incumbents. Job analysis addresses the question of what tasks. so did the popularity of job analysis. With the new emphasis on human relations as the key to productivity job analysis was used primarily to set salary scales. Comparable work is an issue of considerable interest to many people. and in the procedures used to assess the applicant’s ability to meet those standards. Inspite of both its importance and the availability of data. the key to productivity is a precise understanding of the tasks that constitute a job. For many years. 4. Figure 1 suggests some of the many uses of job analysis. about 65 percent of what a man would earn. Comparable worth refers to equal pay for individuals who hold different jobs but perform work that is comparable in terms of knowledge required or level of responsibility. Information about jobs can be collected in a number of ways. job analysis was considered the backbone of the scientific clipboards and stopwatches. There are two areas where unfair discrimination in hiring can occur: in the standards set for being hired. If the motions of workers are to become standardized and machine-like. questionnaire. McCormick (1976) lists the following as potential sources: observation. job analysis is the foundation of virtually every other area of industrial psychology. diary. technical conference. however. As the popularity of scientific management declined after World War II. group interview. a proper job analysis is necessary. Aside from verifying the fairness of selection procedures. then it is necessary to be certain about what is to be accomplished. But in the modern times workers and employers began to take renewed interest in this area because of concerns about two issues: unfair discrimination and comparable worth. or employee records. training and human factors.5 METHODS OF JOB ANALYSIS Job analysis is the procedure for identifying those duties or behaviors that define a job. the area of job analysis has not been studies in details. on the average. and so on. including performance appraisal. One reason for the lack of research is the 7 . how their work fits in or relates to other work performed in the organization. equipment design information. The major issue of the comparable worth controversy is that women who are employed in jobs that are comparable to those held by men are paid. however. Without this information. supervisors. was the method used to determine the most efficient way to perform specific jobs. as well as what abilities and materials are necessary to do the job. how their work should be compensated for in relation to that of others. designed to exclude certain individual or groups from the workplace. or even a camera in the work-place. on what basis recruitment and training should be carried out. Additionally. In order to determine the comparability of job tasks so that salaries can also be compared. taken together actually constitute a job. Possible agents to do the collecting are professional job analysis. individual interview. standards for hiring may appear to be arbitrary – or worse. critical incidents. the procedure for setting salary scales. job analysis is the basis of job evaluation.4 THE IMPORTANCE OF JOB ANALYSIS According to scientific management. More recently.Why is there a need to talk in terms of positions or jobs? It is because it is necessary to identify the results individual will be accountable for when they are hired. recording of job activities. Job Analysis and Job Design 4.

Human Resource Management Cycle: Application of Job Analysis Data. D. collected through observations. (1983). Belenky. translating this data into a quantitative form amenable to statistical analysis is often difficult.H. and the physical abilities requirement approach (Fleishman. S. award.A. is plentiful. 1975). Some method designed to study jobs include functional job analysis (Fine. critical incidents (Flanagan. Over time. 1972). Soder. 1975) the Position Analysis Questionnaire (McCormick. and context Identification of appropriate recruiting sources l l l TRAINING Identification of competencies needed for successful job performance Identification for organizationbased competencies Development of relevant curricula for classroom and on-the-job training s l l l STAFFING Identification of minimum qualifications Identification of special selection factors. increase salary l Discipline.Getting Human Resources nature of the data: Although qualitative information about jobs. Washington. Job Analysis: An effective management tool. different approaches to dealing with data of job description have been developed. terminate l Provide additional training l Restructure job CLASSIFYING / EVALUATING l Written description of job content. Development of valid selection instruments and procedures Figure 1. requirements. Jeanneret. DC: Bureau of National Affairs s s s s . 1954). & Mecham.E. job elements (Primoff. 1974). l l l l DESIGNING THE JOB Meet production goals Promote job mobility / career ladders Create entry level jobs Remove artificial barriers to employment of special groups MANAGING PERFORMANCE l Promote. and context l Identification of critical job requirements l Assessment of job in relation to others to determine pay s APPRAISING PERFORMANCE l Identification of critical job elements l Development of performance standards l Identification of performance indicators s l l RECRUITING Clear statement of job content. requirements. A. 8 Source: Bemis.

Reasoning (the use of concepts and decision making). 9 . the purpose. and speaking). the individuals responsible for accomplishing the task. low difficulty. workers interviews. Fine during the 1950s as part of the Functional Occupational Classification Project that resulted in the third edition of the Dictionary of Occupational Titles. vi) Operates the equipments – difficult outputs. and excluded a disproportionate number of minority candidates. and Language (reading. Things (use of machines and tools). Job Analysis and Job Design Fourth. and a four-year apprenticeship—were to strict. (1981) utilized a functional job analysis approach to study the work of heavy equipment operators that has been described as a model application of this method. and vii) Shuts down the equipment. these analysis study jobs in terms of five components.a) Functional Job Analysis The rationale behind functional job analysis (FJA) is that jobs must be defined in terms of the interaction between the task. As well as providing a system that identifies job tasks. the analysts determine the specific abilities necessary to perform the job successfully. performance standards are set and then. v) Operates the equipment – intermediate difficulty outputs. functional job analysis also allows for the setting of performance standards and the identifications of materials for training workers. According to Fine (1974). the analysis developed seven task statements for successful operation of a piece of heavy equipment. Some workers had complained that the standards necessary to be hired—a high school diploma. and the environment in which the task is to be performed. and second. and direct observation to learn about a specific job. training manuals. often irrelevant to job performance. The union representing heavy equipment operators consequently authorized a job analysis to better understand the actual work of its members and to assess the relevancy of its selection criteria. People (communication and interaction). fifth. Example of Functional Job Analysis Olson et al. Services the equipment. writing. In this stage of the analysis. FJA was developed by Sidney A. iii) Starts the equipment. Amount of autonomy in the tasks. In the third component of functional job analysis. iv) Operates the equipment – basic. The basic tasks of heavy equipment operation were identified as follows: i) ii) Inspects of equipments (prior to operation). These professions use employee materials. analysis must identify and describe the tasks necessary to accomplish a job. Mathematics. goals and objectives of a specific job need to be identified. outputs. FJA relies on trained professionals for its data. jobs are reviewed along seven dimensions: 1) 2) 3) 4) 5) 6) 7) Data (worker’s involvement with information and ideas). language and mathematics tests. training needs are identified in the final stages of functional job analysis. from this information. First. After clarifying the goals and objectives of the job.

performance standards – more specific tasks within the broader category – were developed by groups of four to six subject matter experts or “SMEs” (SMEs are typically supervisors. D. whereas those having a low level of skill did not do as well. backfill Finish the Slope Push load scraper. Fine. & Jennings. Myers. Performance standards are expressed in terms of specific outputs and operator behaviors necessary to accomplish those outputs. M.A..C. 1 0 . S. The analysts selected a few of the performance standards and assembled them into a work sample test designed to be a new standard for selecting operators. Scores from the work sample tests developed from the functional job analysis resulted in the successful prediction of the performance levels of heavy equipment operators. or job analysts). 34. the researchers had enough data to develop a test for assessing the abilities of heavy equipments operators. 351-364. Personal Psychology.Getting Human Resources From the seven basic task statement. run fill Cut and fill. That is. At this stage of the analysis. (1981). job incumbents.. Table 1 lists some of the outputs tested.C. The number of performance standards for any specific job can run into the thousands. Table 1: Outputs Tested for Each Piece of Equipment Bulldozer (3 hours) Excavate for foundation. build ramp Backhoe (2 hours) Excavate vertical wall trench Expose buried pipe Excavate sloping wall trench Excavate pier hole Loader (1 ½ hours) Excavate basement Form spoil pile Load haul vehicle from spoil stockpile Grader (2 ½ hours) Build maintenance road Cut rough ditches Level material and crown road Construct V-ditch to grade Finish grade to a flat surface Scraper (varied) Load scraper Haul material to fill area Unload scraper Return to cut area Source: Olson. H. individuals who had been identified by a committee of supervisors as having a high level of skill scored high on the work sample test.C. The use of functional job analysis in establishing performance standards for heavy equipment operators.

(See Box 1). and whether or not these consequences were within the control of the employee. exactly what the employee did. and testing operators involves large numbers of personnel in a major effort. This job analysis method grew out of experiences with selecting candidates for flight school during World War II. Since some of the experts are individuals who do not actually perform the tasks. where experts make judgments about the content of job. In other words. Studying jobs. skilled and semi-skilled jobs would require from 1000 to 2000 incidents. For smaller organizations in particular. Workers are assembled in groups and asked to come up with incidents. it is possible that they may not have a full understanding of the job in question. CIT asks employees aims of the activity” (Flanagan. One advantage to the critical incident approach is that it can be used to gather large amounts of data in a short period of time. Another consideration with regard to FJA is its use of “experts” to analyse jobs. These “critical incidents” were defined as “extreme behaviour. CIT asks employees for specific examples of onthe-job behaviour that demonstrate both high and low levels of performance. Standards for acceptance or rejection were lax. According to Flanagan. and others. the components of a job. Johan was left alone to serve a restaurant full of customers. Such detailed information can be used to identify erroneous and possibly damaging assumptions about job tasks: In the example just cited. Sources for critical incidents include workers. and vague reasons such as “lack of inherent flying ability” were used to disqualify individuals who might have been good crew members. the job incumbents may also introduce error into the analysis if they do not understand the importance of all. He moved quickly and efficiently and kept a pleasant smile on his face the entire time. either outstandingly effective or ineffective with respect to attaining the general aims of the activity” (Flanagan. On the other hand. 1954). this approach may be too burdensome to be useful. As a result. Informants will describe what led to the incident. an analysis of simple jobs would require from 50 to 100 incidents. Job Analysis and Job Design b) Critical Incidents Technique In contrast to FJA. supervisors. Under incredible pressure. 1954). he waited on tables throughout the room rather than only in his own section. and supervisory jobs would require from 2000 to 4000. developing performance standards. 1 1 . Box 1 An example of a critical incident for a waiter might be as follows: When a waiter and a waitress walked off the job during lunchtime. identifying tasks. it is easy to see that FJA yields an extremely detailed picture of what tasks constitute a specific job. the critical incidents technique (CIT) utilize actual episodes of on-the-job behaviour. the perceived consequences of the behaviour. In an attempt to avoid relying on the impressions of examiners to assess the suitability of candidates. In other words. managers. Typically. co-workers. the Air Force Aviation Psychology Program developed a series of standards for performance using examples of behaviour that had occurred in military situations.Evaluating Functional Job Analysis From the foregoing analysis. At the same time FJA also required a major commitment in terms of resources. the job analyst will ask informant’s to think of the most recent example of a worker performing at a very high level. FJA resulted in a major revision of employee selection procedures. customers experienced only minimal delays in getting their food.

disciplined residents but not their friends. especially in performance appraisal. In a study comparing various methods of job analysis. and Bennett (1980) found CIT to be the most expensive. social skills. head residents. job design.Getting Human Resources After the incidents are collected. concerned about residents. or only the most important tasks may be identified (Bemis et al. In order for CIT be effective.. and others areas. fairness. Poor resident assistants. Levine. and self-adherence to the rules. unfortunately. some aspects of jobs may be overlooked. interest in residents. Reports of actual instances of behaviour gathered from a variety of sources may give the critical incidents analyst a more objective picture of what behaviour constitute a specific job.. and job incumbents. Asking employees to stop work in order to meet in groups and record incidents that have accrued in the workspace is time-consuming expensive. or analysts independently group similar incidents into broader categories. 1983). and assistant head residents the following question: Think of the best (worst) Resident Assistant that you have ever known. Good RAs were fair in discipline. a detailed outline of the content of a specific job will emerge. and inefficient. another problem with CIT is the subjective nature of the data. Now describe in details one incident that reflects why this person was the best (worst). From this procedure. discipline. experts information is replaced by information from the workers. and had a personality style that was either excessively timid or authoritarian. self-confidence.” or ‘interaction with customers. they are transferred to index cards. this process cannot be shortened. Evaluating Critical Incidents Technique Some authors have pointed out that one weakness of virtually all approaches to job analysis is their reliance at some time point on the opinions of a knowledgeable individual (e. (Factor analysis is frequently used in this part of the analysis). These independent groupings are compared in order to establish categories may include “promptness of service. After resorting the incidents as a check on the reliability of the raters’ judgments. self-control. If an insufficient number of incidents is collected. and job incumbents are probably the critical incidents technique. The researchers asked 93 RAs. 1982). stayed around the hall more than was required. the researchers were able to identify qualities of good and poor resident assistants. were seldom around the hall. on the other hand. In the critical incidents approach. broke rules. Ash. It may have a negative effect on productivity. and were self-confident and self-controlled. human factors. authoritarianism. Another important advantage of critical incident is that the data can be used for a number of other personnel functions. Supervisors are likely to be best informed about what levels of performance are expected. Three judges sorted the 312 incidents collected into the following categories: availability.. On the other hand a disadvantage of this approach relates to one of its most attractive features — the use of employees as the source of data. planned additional programs.” “accuracy of orders. Workers’ perceptions of effective and ineffective behaviour are likely to be influenced . were not friendly. this reliance of actual instances is at least focused on events that actually happen in the workspace. Jones et al. 1 2 Along the same lines. supervisors.g.” Raters discuss any differences in categorization in order to ensure agreement and the reliability of the ratings. Example of Critical Incidents Techniques Aamodt and his associates (1981) used the critical incidents techniques to study successful and unsuccessful performance on the part of dormitory resident assistants (RAs).

KSAs for each of the 11 tasks were generated by 18 SMEs. perceptions about the quality of their own performances. ratings on the above four factors are analyzed to determine what elements are most important in selecting superior workers. and cosmetology. A major advantage of job elements is that. 1 3 . these SMEs participate in a brainstorming session in which they identify as many of the elements of a particular job as possible. in addition to identifying the tasks that constitute a particular job. and social. a detailed picture of the job duties and tasks of the condominium manager emerged. a “Crediting Plan. Job elements include knowledge. Example of Job Element Approach Ash (1982) used the job elements approach in a study of the job of condominium manager in Florida. of the 11 tasks identified by Ash. job elements relies on the knowledge and experiences of supervisors and job incumbents. Through a statistical technique known as cluster analysis. In the second part of the study. From this analysis. physical maintenance. interest. fiscal. legal. On the basis of job elements analysis. an their willingness to participate in the critical incidents study. In the initial part of the study. To a certain degree – but not entirely – these subjective factors can be controlled by collecting large numbers of incidents.” describing the KSAs necessary for successful job performance and used for evaluating applicants. can be developed. it is particularly useful for developing training programs. and surveys of supervisors and job incumbents. Each of the elements were then rated on Primof’s four scales. Box illustrates a rating blank for job elements. Like the critical incidents approach. and personal characteristics (Primoff. Job Analysis and Job Design c) Job Elements Approach This method of job analysis was developed by Ernest Primoff at the Federal Office of Personnel Management and uses as its focus the elements that a worker uses in performing a specific job. Next. skills. curricula have recently been developed for professional training in engineering pharmacology.by factors such as their feelings toward co-workers. job descriptions. and abilities (KSAs). the identified elements are rated on each of four factors: 1) 2) 3) 4) Barely acceptable: What relative portion of even barely acceptable workers is good in the element? Superior: How important is the element in picking out the superior worker? Trouble: How much trouble is likely if the element is ignored when choosing among applicants? Practical: Is the element practical? To what extent can we fill our job openings if we demand it? Using a statistical procedure developed by Primoff. the number of tasks was reduced to nineteen in the following five categories: administrative. as well as willingness. Evaluating Job Elements Approach The job elements approach is an involved procedure that provides a detailed analysis of a particular job. Box 2 illustrates the elements under the broader category of personnel and general management. In the first stop of a job elements approach to job analysis. 1975). 159 task statements were collected from books. From this information.

and Mecham (1974) used the Position Analysis Questionnaire to evaluate 131 clerical. Nevertheless. interpersonal activities (36 elements). PAQ attempts to put this data into a more manageable form. and operative jobs to compare various methods of job evaluation and to determine salary fairness. work situation and job context (19 elements). although job elements has the possibility of becoming a bit unwieldy. McCormick (1979) has suggested that the analysis of jobs through the PAQ approach is usually carried out by job analysts. Primoff had developed a supplemental procedure (Primoff. These six dimensions are information input (35 elements). in contract to the other methods. and since very limited funds were available for the project. Box 2 Elements of Personnel and General Management for the Job of Condominium Manager l l l l l l l l l Maintain 24-hour call service Hire employees Train employees Evaluate employees Establish job descriptions Develop fringe benefits package for employees Provide ongoing educational program for employees Monitor architectural control requirements Assign qualified property manager to supervise and administer the day-today on-site activities Coordinate volume purchasing Develop cost savings procedures l l d) Position Analysis Questionnaire (PAQ) The Position Analysis Questionnaire (PAQ) was developed by McCormick and associates (1972) on the assumption that there is an underlying taxonomy to all jobs. however. Given the thousands of tasks for one job that the other methods may identify.Getting Human Resources Like the other methods. this is usually restricted to managers and white-collar workers. Additionally. and miscellaneous aspects (41 elements). 1 4 . mental processes (14 elements). Clark & Caplan. job analysts may have access to computer programs in order to complete an analysis. That is. work output (49 elements). personnel officers. which are classified in terms of six broader dimensions. Descriptions of these six divisions are presented in Box 3. or supervisors. Although job incumbents may use the PAQ form. the PAQ was chosen for the job analysis. job elements is time-consuming and costly to operationalise. Wahlstrom. the PAQ approach focuses on broad categories common to all jobs rather than on individual elements of specific jobs. methods analysts. Example of Position Analysis Questionnaire Approach Robinson. it had had an important effect on developing other methods of job analysis. Evaluation of these jobs was undertaken at the request of the workers’ union. PAQ reduces all jobs to 194 elements. craft. 1982) that combines the job elements method with functional job analysis and the critical incident technique.

(Where and how does the worker get the information needed to perform the job?) Examples: Use of written materials Near-Visual differentiation 2) Mental processes. Another advantage of quantitative basis of the instrument is that it has been shown to be extremely reliable. not much time needed for this. PAQ is structured to allow for easy quantification. and information-processing activities are involved in performing the job?) Examples: Level of reasoning in problem solving Coding/decoding 3) Work output. In the previously cited study comparing several methods of job analysis. Evaluation of Position Analysis Questionnaire There are several advantages inherent in the Position Analysis Questionnaire. supervisors. First. Overall. decision-making. That is. customers 5) Job context (in what physical or social contexts is the work performed?) Examples: High temperature Interpersonal conflict situations 6) Other job characteristics. Robinson et al. 1 5 . is related to its taxonomic approach. The format of the instrument facilities both data collection and computer analysis and can yield results much faster than the other methods. Another advantage is that the taxonomic approach of the PAQ makes comparison of jobs relatively easy. One of the major disadvantages of PAQ. and some job incumbents rated the jobs. conditions. salaries were found to be fair and all methods of job evaluation had similar results. however. job analysts. results usually replicate on a second administration. Along the same lines. or characteristics other than those described above are relevant to the job?) Job Analysis and Job Design After receiving orientation about the jobs and the use of the PAQ. found that the analyses done by the job incumbents were not as thorough as those done by the supervisors. (What relationships with other people are required in performing the job?) Examples: Instructing Contacts with public. Unlike the other methods discussed. planning. Interestingly.Box 3 Outline of the Position Analysis Questionnaire 1) Information input. Levine and associates (1980) found that the PAQ system was the most disliked. (what activities. (What reasoning. (What physical activities does the worker perform and what tools or devices are used?) Examples: Use of keyboard devices Assembling/disassembling 4) Relationships with other persons. the taxonomy allows the Position Analysis Questionnaire to be applied in a wide variety of situations without modifications.

and installers. face such physically demanding tasks that only 48 per cent of diver candidates even finish a training course (Quigley & Hogan. 1982). Reilly. When an employer or a job applicant is uncertain about the levels of strengths or flexibility necessary to perform a job. and Tenopyr (1979) considered the process by which telephone line technicians. Specifically. Levels of physical ability are obviously important in many occupations in our society. For many jobs. Ash and Edgell (1975) have pointed out that the readability of the instrument is at college level. Lack of knowledge about physical requirements can lead to problems in many areas. the researcher also asked 58 job 1 6 . At the same time.. these researchers were interested in predicting the ability of applicants to perform tasks relating to pole climbing and ladder handling. two essential aspects of successful job performance. splicers. information about the physical requirements is usually inferred. In contrast to the other methods. Uncertainty about physical requirements can also result in turnover or attrition that can be quite costly to the employer. poor match between applicant abilities and physical requirements is likely to lead to a higher accident rate. From these interviews. Although these job analysis methods will identify those tasks that a worker is expected to accomplish. Job analysis started with group interviews of outdoor craft supervisors in order to identify those tasks that demanded gross motor proficiency. Additionally. manual dexterity. Navy ordinance disposal divers. Zedeck. abilities are the foundation on which skills are built. for example. with the exception of the PAQ. they are not very useful for determining the physical requirements for job performance. qualities such as reaction time. employers who hire only men may be violating laws governing fairness in personnel selection. As suggested. Whereas operating heavy equipment is a skill. were selected. but the analysis of jobs with regard to this area has not been widely explored in industrial and organizational psychology. and rate control (Theologus. 1970). or trunk strength may be critical to successful job performance. some of coordination. Unless a thorough job analysis reveals specifically that most women do not have the physical abilities necessary for successful performance of the job in question (e. Employers who might assume that women are unable to accomplish tasks requiring physical strength and consequently avoid hiring them may be discriminating unfairly. jackhammer operator). considering jobs from an abilities approach results is much greater generalisability of information across differently jobs. which may explain why the use of job incumbents as informants is limited in the PAQ approach. e) Physical Abilities Requirements Approach One limitation of all the methods discussed is that. Fleishman (1975) & Quaintance (1984) had developed a taxonomy of physical and cognitive abilities that is designed to describe the performance standards of any job.g. then the likelihood of the candidate not performing successfully is much greater. Example of Physical Abilities Requirements Approach In an important study of the validity of physical ability tests to predict job performance. a 24-item task list was developed. a lack of knowledge about physical requirements can lead to problems with selection or employee turnover.Getting Human Resources probably because its language is not specific to particular jobs. & Fleishman. but particularly in personnel selection and employee turnover. According to Fleishman. Romashko. Another criticism of the language used in PAQ is that its reading level is too difficult.

Questionnaire should provide the following basic information: l l l The job title of the job-holder.6 JOB DESCRIPTION AND JOB SPECIFICATION Job analysis is the examination of a job. are useful when a large number of jobs are to be covered. They can also save interviewing time by recording purely factual information and by helping the analyst to structure his or her questions in advance to cover areas which need to be explored in greater depth. From the job analysis and job description. Romashko. and physical abilities scales contained in the Abilities Analysis Manual developed by Theologues. Training. where the job description resulting from job analysis is used to decide on the objectives and standards the job holder should reach against which his or her performance will be measured. the contacts made and the frequency with which the tasks are carried out. Performance appraisal. its component parts and the circumstances in which it is performed. a job specification may be derived. A brief description (one or two sentences) of the overall role or purpose of the job. Job Analysis and Job Design 4. a) Questionnaires Questionnaires. the equipment used. 3) 4) 5) 4. as part of the process of activity. duties and responsibilities of a job. The job titles and numbers of staff reporting to the job-holder (best recorded by means of an organization chart). cognitive. psychomotor. to be completed by job-holders and approved by job-holder’s superiors. The title of the job-holder’s superior. perceptual. As appropriate. A list of the main tasks or duties that the job-holder has to carry out. It leads to a job description which sets out the purpose. The aim of the interview is to obtain all the 1 7 . knowledge and other personal attributes required to carry out the job. scope. where it is provided a basis for a specification of what the company is looking for. where by means of whole job or factor comparison. Some of the uses are: 1) 2) Recruitment and selection.7 TECHNIQUES OF COLLECTING INFORMATION FOR JOB ANALYSIS Information about jobs can be collected by means of questionnaire and/or interviews. and Fleishman.incumbents and supervisors to classify tasks in terms of sensory. which is a statement of the skills. job descriptions can be compared and decisions made on the relative position of a job in the hierarchy. Organization Planning. Job evaluation. l l b) Interview To obtain the full flavour of a job it is usually necessary to interview job-holders and to check the findings with their superiors. these should specify the resources controlled. where by means of skills and task analysis it produces training specifications which set out training needs and are used to prepare training programmes.

and The main process of management that are carried out. daily. Chronological order. intermittently). ensure that the job-holder is not allowed to get away with vague or inflated descriptions of his or her work. Reporting to The job title of the manger or superior to whom the job-holder is directly responsible is given under this heading. so far as possible.8 TECHNIQUES OF WRITING JOB DESCRIPTIONS Job descriptions are based on the detailed job analysis and should be as brief and as factual as possible. and obtain a clear statement from the job-holder about his or her authority to make decisions and the amount of guidance received from his or her superior. but some indications is given of the purpose or objectives of each task. hourly. The aim is to convey in no more than two or three sentences a broad picture of the job which will clearly distinguish it from other jobs and establish the role of job-holder. and controlling. seven or eight main activity areas remain. pin people down on what they actually do. To achieve this aim job analysts should: 1) 2) 3) 4) work to a logical sequence of questions which help the interviewee to order his or her thoughts about the job. monthly. directing and motivating staff. planning. Job Title The existing or proposed job title indicates as clearly as possible the function in which the job is carried out and the level of the job within that function. operating. Overall responsibilities This part describes as concisely as possible the overall purpose of the job. The alternatives include : l 2) 3) Frequency with which they are carried out (continually. say. simplify the list by grouping related tasks together so that no more than. Analyze the initial list of tasks and.Getting Human Resources relevant facts about the job. organizing. l l l 1 8 . for example. 4. No attempt is made to describe in detail how they are carried out. coordinating. weekly. Main tasks The steps taken to define the main tasks of the job are as follows: 1) Identify and list the tasks that have to be carried out. The headings under which job descriptions are written are set out below. covering the areas listed above in the section on questionnaires. Decide on the order in which tasks should be described. Order of importance. setting objectives.

Subjects discussed are flow of work and different work systems. Emphasis is upon the flow of work among people. c. One important aspect of work flow is that it determines who will “initiate” an activity and who will “receive” it. Thomas M. The first related to the flow of authority and is known as organization structure or merely organization. any separate tasks carried out within the task can be tabulated (a. ensures that.g. as indicated in the quotation introducing this chapter. supervises. work flow has many behavioral aspects because it sent people interaction as they perform their work. and specialization and to achieve order and balance in the performance of work.4) Describe each main task separately in short numbered paragraphs. This process of sending work to another is an initiation of action on another person. l l 4. but the receiver of a procedural initiation is especially so 1 9 . State what is done as succinctly as possible.9 JOB DESIGN We can say that the that assembly-line workers are fairly highly involved in the work. The goal of methods improvement is greater productivity. e. Lodah There are two basics ways in which work is organized. workers do not like to be “engineered” in methods improvement. or to collaborate with someone. recommends.10 EFFECTS OF WORK FLOW ON PEOPLE a) Initiation of Action. The second relates to flow of work itself from one operation to another and is known as procedure. by which it seeks to make optimum use of division of labor. to do. system. staff experts give ideas and instruction. Along the way. etc) under the overall description of the activity. When an initiation results from work flow. if necessary. 4. ensure that someone else does something. Active verbs are used which express the actual responsibility to recommend. No more than one or at most two sentences are used for the description. Synonyms are method. rather than the personal work methods of an isolated individual. it is called a procedural initiation to distinguish it from an authority initiation. liaises with. At each point in the flow of work one person gives material to the next person who will work on it. and State why it is done: this indicates the purpose of the job gives a lead to setting targets or performance standards. but more often than not they ignore or overlook the behavioral aspects of work flow. The receiver of any initiation is psychological secondary. Prepares. A typical sentence describing a task should: l Job Analysis and Job Design Start with an active verb to eliminate all unnecessary wording. b. The reason that work flow and the lay out over which it flows are engineering factors. Alert managers usually recognize the behavioral aspects of organization structure because of the superiorsubordinate relationship which it establishes. This part discusses different aspects of work methods. even through they have little autonomy. which are to be distinguished from human factors. and work flow. which comes from formal authority of a informal organization. One management’s most fundamental idea is systems and method improvement. but. In the usual case however. completes. They perceive that improvement is measure in technical terms and that the human dissatisfaction caused by the “improvement” are generally overlooked. but sometimes it brings human compilations which reduce effectiveness and offset the technical advantages gained. However.

Procedural. Teamwork can be engineered out of a work situation by means of layouts and job assignments which separate people so that it is impractical for them to work together. as in the following example from Whyte’s study of restaurants. b) Systems Design for better Teamwork. functionally interdependent. one cannot determine who initiates an event because it arises from the work itself. place heavy pressures on the receiver. which prevented the operator fed parts to two spiral lines which were in competition. Large restaurants sometimes use young boys as runners to communicate the needs of the serving pantry to the kitchen. Management’s responsibility is to discover these situations in its work processes and. even though the work flow requirement teamwork. and informal initiation of action come from person however. human problems can become serious. and changing the initiator to someone of more status. The result is that a young boy imitates action on high-status cooks. Another important aspect of work procedure is that it should permit people to work together as a team whenever the work flow requires it.” When procedural initiation comes from someone of distinctly less skill. The reasons appears to be what workers are less likely to resent and feel subordinate the impersonal requirements of the work itself. These problems tend to be compounded if any relationship involves pressure on the receiver. This kind of initiation not identifiable with persons is called a situational interactions. was unnecessarily on separate shifts. Practical solutions included. There is some evidence that persons get satisfaction from working in harmony with situational initiations and that teams have better moral when their teamwork primarily involves situational initiations instead of personal ones. if they cannot be avoided to plan them carefully. Cooks resented the control exercised on them by young boys of inferior status. In one instance two operators. 2 0 . This place the runner in the position of “telling” the cooks to prepare and send particular types of food.. One of the best illustrations of teamwork engineered out of a job is Rice’s study of textile mill in India. In this instance.g. In another situation the operator of a continuous bottle forming machine was so far separated from the first inspection station on this line that he could never be sure whether his machine was producing satisfactory quality. someone much younger. or affect sensitive parts of the receiver’s work tend to be trouble spots. Whyte found that this relationship was typically a trouble spot in the restaurants he studied. and each line regularly claimed that is favored the other. In essence. For example. Further problems tend to arise when a procedural initiation affects “sensitive” areas such as how much work a man does (e.Getting Human Resources because he may receive from a worker who is neither his supervisor nor an informal leader – from someone who “just shouldn’t be pushing him around. or the cellophane ribbon creases on cellophane machines and men act as a team to correct it. he is telling them what to do. authority. a ceramic glaze has finished its baking cycle and the operator acts to remove it from the furnace. The problem was met by continuously reporting inspection result from the inspector to an information panel in front of the operator. (Box 4). not all work imitations are identifiable as coming directly from some wherein people respond t cues implicit in the operation situation. time study) and his conclusion that procedural initiations which are from low-status to high-status person. 1) 2) using a mechanical voice system which eliminated face-to-face contact. or someone inferior by any measure of status.

The other nice occupations were service and maintained. “Why?” his answer “ The cafeteria is for eating only. it failed to reach satisfactory output. worked with three-fifth of a battery filler. and serve as group leader of a few clerks. Workers then were able to set up interaction and teamwork which causes production to soar. but this eventually had to be stopped because of the disturbance. Although the mill appeared to be superbly engineered. Each battery filler served all looms of one weaver and part of the looms of a second weaver. while another weaver shared two-fifths of him. The floor and ceiling shook. Research disclosed that close teamwork of all twelve occupations was required to maintain production. Eventually work was reorganized so that a certain group of workers had responsibility for definite number of machines. Work flow can also be setup in such a way that the job puts unreasonable pressure on a person. to communicate better. there was no sound-deadening tile on the ceiling. which meant a weaver and battery filler were not a team unit even though the nature of the process required it. but employee communication and relaxation were thereby exclude at mealtime. In an insurance office. but his time it was too much—the cafeteria was located in the basement directly beneath stamping and light forging presses! Vibration was so terrific it stopped conversation. answer the telephone. the layout of desks was such that persons who needed to coordinate their work were unnecessarily separated by a broad aisle. Although the lunchroom was spotless and efficiently designed. which meant that the presses operated during the time most employees ate.” Job Analysis and Job Design 2 1 . In one room there were 224 looms operated and maintained by twelve occupational groups. Lunch hours in the plant were staggered into four periods. Each job had carefully assigned work loads based on engineering study. Under conditions of this type it is useless to try to solve the problem by training the participants to understand each other better. so the cafeteria got it. In effect. The situation was even more confused with smash hands who tended seventy-five looms. and each smash had served and average of seventy-five looms. I ate an uneasily meal. The space beneath the presses apparently was not needed for another function. the noise shouldn’t bother anyone. In another company sewing machines were located so that talking was discouraged but management soon discovered that another layout which permitted talking led to higher productivity because it relived the monotony of routine work.Box 4 (Illustration of Teamwork Engineered) The mill was intensively reengineered according to basic industrial engineering procedures. a weaver tending twenty-four looms and using a battery filler serving forty looms. each battery filler served forty to fifty looms. Each weaver tended twenty-four on thirty two looms. When I asked my host. Some years ago I visited a new factory which was a model of engineering efficiency. I normally have an affinity for the factory environment. In a series of similar offices the secretary of each was required to prepare technical correspondence for five to seven managers. Another example is that of a hotel food checker who inspected food brought by waitresses on the telephone. the dished settled. and anyway. yet work organization prevented this teamwork. for example. Managers often overlook the fact that layout can also affect off-duty interaction of employees. The first requirement is to reorganize the work flow then human relations training may not even be needed! It is well known that plant layout and work flow have much to do with the opportunity which people have to talk to one another during work. The result was high turnover and more than a normal amount of nervous disorders among the secretaries. or to apply good human relations. greet visitors. Employee met the problem by loudly calling across the aisle. The end result was poor communication. and each worker had either 112 or 224 looms.

consequently. The first reason can be eliminated through good leadership and second reason deserves further attention at this point. but his personnel hesitate to challenge the procedure because they did not participate in establishing it. employee effectiveness is increased through the use of activities which occupy the mind and crowd out obsessive thinking. even through once useful.” Another cause of useless procedure is that it is often determined by a higher authority who does not understand work problems. It is the unnecessary procedure which delays and harasses people everywhere. jumping from one chain of command else worry about.” An additional reason why procedures tend to outlive their usefulness is that the persons who created them are often supervisors all out of proportion to their real significance. They become an obsession with him and this condition is known as obsessive thinking. They get “stuck in a rut. but from a broader viewpoint the work is both necessary and worthwhile. People do not like to get caught not knowing something about their work. The more a worker’s mind is kept busy. tend to persist long after their usefulness has passed. Affecting the communication patterns of employees. too – and it originates with them – so let them change it. but some is in reality “fictions red tape. They do this by: 1) 2) 3) Determining who initiates procedural action on whom. Genuine red tape arises primarily because (1) managers are afraid to delegate and consequently set up all sorts of unnecessary approvals and checks. The remedy for fictitious red tape is improved communication and development of a broader perspective among those who perform the work. set up to eliminate thinking by giving its followers a routine to use without having to decide each step.Getting Human Resources The evidence is clear that work systems and layout have a substantial effect on human behaviour. think it is red tape.” It exists when those who perform the procedure do not know why they are doing it. Very often he focuses extremes attention on one or two of them. the less should be his obsessive thinking. Where conditions permit obsessive thinking and the conditions cannot be changed. and people resist changing it. consequently they cannot know whether it is useless or not. “ they know about this procedure. Another reason for useless procedures is that most of them cross lines of authority. One cause of the “stickiness” of red tape is normal resistance to change. One aspect of procedure which is universally known as respected for its effect on people is red tape. The general conclusion for management is that relationships among workers in a system can be just as important as relationships of the work in that system. In the design of any system it is folly to spend all time planning work relationships but ignoring worker relationships c) Control of Red Tape. No doubt some of the work in government and in business as well is true red tape. many of which having long been challenged as unnecessary by those who prepare them. and some of the conditions in which the initiations occurs. In other cases. and they do not date to expose their “ignorance” by questioning a procedure with their boss may be able to prove essential beyond a shadow of a doubt. they-seldom think about changing it. in a sense. and (2) procedures. The term originated from real red tape used to tie official government documents. A procedure tends to become a habit. This is one reason management provides music 2 2 . Influencing the degree to which employees performing interdependent functions can work together as a team. people do not know why they are performing a procedure. They. Since it as.

In response to this system established by management. Following is a example of employee adaptability. we need to design systems which are as appropriate for people as possible. the other supervisors lent to him from their stores. An air-conditioning manufacturer required his three final assembly departments to complete a specific daily quota of air conditioners. Supervisors soon learned that the ordinary uncertainties of production caused them to produce over their quota on some days and under their quota on other days. and provide additional group solidarity.” Each started keeping a store of ten to fifty “almost-finished” air conditioners under starpaulin in his department. Where the stakes are high. Then. Contests and recreational programs are other activities which occupy the mind. if necessary. The functional system is organized on the basis of specialized work activities rather than products. The product system is organized around a complete product to be made. One company which employed many persons with advanced degrees in its offices and in small lot of production established the policy of having all job design and systems work performed by a team of two men. From the social point of view. he took from this store a nearly finished air conditioner and ran it through final assembly steps in order to meet his standard of 7—air conditioners for each eight hours day. On each team one person was an industrial engineer concerned with technical requirements. Two somewhat opposing work systems are product and functional organization of worm. The two type of work systems in a pharmaceutical firm are as follow. and the other was a human relations specialist dealing with human aspects of the work. management’s needs for a standard output were met and supervisors’ needs for acceptance by management were met. management was quite insistent that they must meet the quota every day that shipping schedules could be met. In nearly all cases they will adjust reasonable well. (Box 5).11 DIFFERENT WORK SYSTEMS The way in which work is organized leads to different work systems. Regardless of what kind of system is developed. If a supervisor had a series of bad days. and assembly lines. when he produced over the standard on another day. he worked some of his production back into the store. The following systems will be discussed because of their significant influence on employee behaviour: produced and functional work systems. However. In order to escape some of the human effects of poorly designed systems more companies are insisting that their systems experts and industrial engineers have human relations training. a) Product and Functional Work Systems. For this same reason management permits – even encourages – talking across the aisle or workbench.in routine and monotonous situations. or they lent him a man from their group to help him catch up. because people have a remarkable sense of adaptability. workers and their supervisors will try to adjust to it. Manufacturing affords an interesting example. labor pools. even more stringent requirements may be set. In this way. When he saw that he was running short for the day. drive out obsessive thinking. 2 3 . Job Analysis and Job Design 4. considering economic and other factors the situation. each of the supervisors began his own. “system.

and finally to the packaging department. so their role in the work process becomes more meaningful to them. Look now at the functional work system. top management needs to devote extra attention to maintaining interdepartmental cooperation and developing broad. more versatile supervisor than the supervisor of a functional system. because a breakdown in one department slows the work of all other departments.Getting Human Resources Box 5 Work Systems in a Pharmaceutical Firm The manufacture of pills and tablets is handled differently in one than in the other. then they are transported to another department for pressing. In the product system the persons who work together are a conglomerate mix of skills. liquid and vaccines. the workers become broader in experience and outlook. and packaging. Bickering develops over whether work is done on time and with proper quality. He controls a varied set of activities which follow the product from beginning to completion. such as moving from tablet packager to tablet presser to tablet coater. In the product system all work on tablets is done in one department under one supervisor. Though product employees lack a mutual occupational interest. therefore the route of promotion is less certain and requires more versatility of skill. In the mixing department of the pharmaceutical firm the foreman probably is the senior man or is the mixed with greatest skill or knowledge of formulas. The foreman in the product system cannot master all the skills in his department. He controls the mixing according to formula. Workers in a functional system no longer are direct involved in the whole product and tend to feel less responsible for it. Depending upon their objectives and manner of organization. Emphasis is on technical skill rather than human skills. There are persons mixing formulas in all three departments – tablets. to another for coating. so he is unable to comment respect of the workers through superior’s ability in their specialty. because natural team work develops as each man sees that his contribution is needed to make this whole product. b) Labour Pools. Disputes arise concerning who caused a mistake and at what point a department assumed control of a particular batch of work in process. The two types of work systems create different employee environments. In the functional system tablets are mixed according to formula in the first department. pressing of the tablets. Promotion in the product system usually is gained by learning a different occupation. They lack a mutual occupational interest because their associates performing similar work are located throughout the plant. An example of this is discussed below (Box 6). human-oriented supervisors. 2 4 . He tends to be a broader. potential conflict is increased. He maintains leadership by means of skilled management and human motivation. In the functional system. Since their work goes to one department and then another. coating-machine operations. Labour pools are also a special way of organizing work. different relationships develop. His supervision tends to be less punitive and directive. they do see a whole product made in their work area. As a result. Both tend to be lacking.

Some men chose to quit the company when transferred to the pool. but it failed because management was unaware of how the work system was affecting human relations. Before the pool was established. developmental and performance management processes. abilities. resourcing and performance management. They disliked being without a specific work station which they could count as theirs. further hurting their morale and increasing pool costs. First. It also increased department costs by requiring overtime. Job Analysis and Job Design 4.Box 6 Labour Pool in Oil Refeneries Oil refineries are required to operate twenty-four hours a day because of the nature of the production process.12 THE CURRENT PICTURE Organization seeking to maximize the value of competency – based management must apply it to several human recourses functions. and personal attributes or characteristics. (4) an orderly progression of the product through a series of operations. Second. The grouping of competencies by job families or generic job roles is also commonly applied. Some organization have also applied it to compensation as well. Behaviour – based interviews are sometimes used to from those high – performance behaviours that differentiate successful job performances from other employees. perhaps it could have worked. because work is organized and simplified in terms of the product manufactured. the pool increased labour costs instead of decreasing them. Some competency models emphasize the “average” vs. 2 5 . skills. Frequently used approaches to competency identification include the use of focus groups of managers and employees as well as individual interviews with “average” and “superior “ job performers. some including values as part of their competency models. It lowered their status to be in the pool. If management had introduced the pool properly. Assembly lines are a type of product work system. after a year of Herculean effort by management the pool had to be abandoned. This left pool men idle. engineers and cost experts carefully proved that the idea was workable and would reduce costs by reducing overtime and/or regular standby men in each department. and (5) mechanical movement of the product to and from workers. for two reasons. Common to most models is the use of observable and measurable behavioral descriptors to describe performance requirement for competencies and the use of scales to differentiate proficiency levels. (3) breakdown of jobs into simple motions. management could not keep men in the pool. The majority of organization defines competencies in terms of knowledge. and they objected to working for different foremen on different jobs. lacked interest and motivation. Since pool men. Organization applying a common model use competencies as the common denominator in selection. most particularly to learning and development. foremen avoided them and started doubling shifts (working one of their own men sixteen hours) instead of using pool men. “superior“ performance distinction while others focus on identifying the competencies that result in “successful” performance on the job. However. c) Assembly Lines . versatile men to be sent to other departments to replace persons absent. One refinery established a central labour pool of skilled. An assembly line is based on the following concepts: (1) standardization (2) interchangeability of parts.

Getting Human Resources Among the products that result from competency projects include self-assessment and 360 degree questionnaires. One of the greatest advantages of using a common language is that by entering competency information into a database. including knowledge. abilities and personal attributes. they cannot readily be tied in any consistent manner to existing HR processes that have been re-designed to accommodate a competency approach. critical jobs in an organization. The approach allows for a common conceptual framework for an entire organization while permitting customization for individual jobs. which is still common. for example. skills. This is because seeking commonalities among different jobs requires that knowledge and skills to be down played and generic abilities and personal qualities be emphasized. users say it is often difficult to see the linkage of the model to Business result and the model doesn’t fully answer the question. learning plans and learning resource information (“learning maps”). This approach also shares a problem common to that noted for the single-job approach. behaviour-based interview questions and other assessment tools. the competencies identified for the particular group of jobs profiled cannot be compared to other jobs in the organization that were not profiled. “What do have to know and to do to be considered for that job?” Additionally. all managerial jobs or front-line jobs. Competency models vary in terms of the types of competency information they collect and reflect on “Competency Profiles”. 2 6 . Using similar techniques as for other competency efforts.” This approach uses a common set of “building block” competencies. For a broad range of jobs. it has limited use in guiding selection. including technical competencies. In addition. a common set of competencies are developed which can then be used as the basis of HR processes. because the model does not differentiate among the requirements of different jobs. identify training and development needs. training and other HR processes for specific jobs and for matching individuals to job assignments. is described as the “Multiple-Job Approach. Some models focus on technical job – specific knowledge and skills while others emphasize very generic abilities and personal qualities. The single-job competency model Earlier competency models focused on single. The multiple job approach What is being seen more frequently as an alternative to the above. The problem with the one-size-fits-all approach is expressed in the following quote: “Without the skills component in the model. which can be used to build profiles for any job. do not allow for comparisons of the requirements of the job profiled with other jobs in the organization. collect qualitative employee data for human resource planning and match individuals to jobs. the competencies have more affinity with organization value than specific job skills or abilities. That is. While such models have value – they provide a framework for describing key job requirements – they are costly to develop and once implemented. related to job success. the documents that describe the particular set of competencies necessary to carry out the work. resulting in fragmented HR practices. this approach does not clearly describe what is needed in any specific job. As such. an organization can being to capture information about skills gaps. More recent models attempt to reflect all the types of competencies. While cost-effective and permitting a consistent framework for a large number of employees.

C.D. & Quaintaner. New York. the multiple-job approach is more cost effective than the single-job approach if many competency models must developed. 70. Job Analysis and Job Design 4.. A.L.E. this unit provided a clear understanding of the process of job analysis and the methods involved in it..14 1) 2) 3) 4) SELF ASSESMENT QUESTIONS What is the relevance of job analysis in the modern times? Discuss the methods used job analysis. Dunnelte. S. (1985) Job applicant training and work experience evaluation: An empirical comparison of four methods. Belmont. R. Also. 4.A..K. D. All the methods discussed have some advantages and disadvantages.This approach is more complex to implement because it covers many different types of jobs and therefore requires buy-in and effort from many key players. 4. 572-576 Bemis. Academic Press. & Soder. Keeping these in view. Denis. Brooks/Cole. E. Discuss the salient features of job analysis How relevant is the understanding of job design for developing organizational effectiveness. an efficient Job Analyst uses the required job analysis technique.13 SUMMARY To sum up. the concept of job design and its associated techniques have been discussed so as to improve your ability to design jobs more effectively. However. D. The framework and administrative processes required to implements it is also more complex.15 FURTHER READINGS Ash. 2 7 . Washington DC: Bureau of National Affairs. 60-67. (1984) Are recruitment efforts designed to fail? Personnel Tour.A. Belenky.L. M.H.A. Tour of Applied Psychology. (1966) Personal selection and placement.A. & Levine E. Fleishman. (1983) Job analysis: An effectiveness management tool. (1984) Taxonomics of human performance: The description of human tasks. M. 63.

.................10 Self Assessment Questions 5................................7 5...................... anticipating (comparison of present and future requirements) and planning (necessary programme to meet future requirements)............................. 2 8 .....................6 5......... ...................... ......................................................... you should be able to: l l l l understand the concept of Human Resource Planning (HRP)...................4 5................. describe the process of HRP............................5 5.........................................................................1 WHAT IS HUMAN RESOURCE PLANNING? Human Resource Planning (HRP) may be defined as strategy for acquisition................. HRP exists as a part of the planning process of business................................ Activity A Identify and tabulate the present position of human resources and future requirement in your present organization................................. The major activities of HRP include: forecasting (future requirements)............2 5......................................... ... inventorying (present strength)......................... The objective is to provide right personnel for the right work and optimum utilization of the existing human resources................... and discuss the problems of HRP..................... discuss the need and objectives of HRP....................................................... improvement and preservation of the human resources of an enterprise.......9 What is Human Resource Planning? Objectives of HRP Levels of HRP Process of HRP Techniques of HR Demand Forecast Factors Affecting HR Demand Forecasting Problems in HRP Process Guidelines for Making HRP Effective Summary 5.................Getting Human Resources UNIT 5 Objectives After completion of the unit........11 Further Readings 5....................... .................................................................................................................. Structure 5..................................... utilization..................1 5....................................................................... This is the activity of the management which is aimed at co-ordinating requirements for and the availability of different types of employers..................... ....3 5..8 5......................

assess or forecast future requirements. Human Resource Planning The objectives of HRP are mainly to: Benefits of HRP Proper HRP results into a number of benefits. Governmental Influences: Government control and changes in legislation with regard to affirmative action for disadvantaged groups. cope up with the changing scenario.5. activities and structures affect manpower requirements and require strategic considerations. This emphasises the need for more effective recruitment and retaining people. Skill Shortages: Unemployment does not mean that the labour market is a buyer’s market. provide basis for human resource development (HRD). restrictions on women and child employment. 2 9 . the nature and pace of changes in organizational environment. Organizational Changes: In the turbulent environment marked by cyclical fluctuations and discontinuities. Organizations have generally become more complex and require a wide range of specialist skills that are rare and scarce. sex. there is acute shortage for a variety of skills. Some of them are: a) b) c) d) e) Create reservior of talent. and assist in productivity bargaining. Preparation for future HR needs. All these suggest the need to plan manpower needs intensively and systematically. casual and contract labout. litercy. Provide basis for HRD. anticipate redundancies. Problems arise when such employees leave. Technological Changes: The myriad changes in production technologies. Legislative Controls: The days of executive fiat and ‘hire and fire’ policies are gone. working conditions and hours of work. It is easy to increase but difficult to shed the fat in terms of the numbers employed because of recent changes in labour law relating to lay-offs and closures. have stimulated the organizations to become involved in systematic HRP. Now legislation makes it difficult to reduce the size of an organization quickly and cheaply. Need for HRP at Macro Level Major reasons for the emphasis on HRP at macro level include: Employment-Unemployment Situation: Though in general the number of educated unemployed is on the rise. etc. Help in career and succession planning. Promote employees in a systematic manner. marketing methods and management techniques have been extensive and rapid. Demographic Changes: The changing profile of the work force in terms of age. These changes cause problems relating to redundancies. attaching with business plans of organization. Their effect has been profound on job contents and job contexts. Those responsible for managing manpower must look far ahead and thus attempt to foresee manpower problems.2 a) b) c) d) e) f) g) OBJECTIVES OF HRP ensure optimum utilization of human resources currently employed. retraining and redeployment. technical inputs and social background have implications for HRP.

It forecasts the demand for and supply of human resources as a whole. New Delhi. politicians and persons displaced from land by location of giant enterprises have been raising contradictory pressures on enterprise management such as internal recruitment and promotions. i) Plant level. Systems Concept: The spread of systems thinking and the advent of the macrocomputer as part of the on-going revolution in information technology which emphasises planning and newer ways of handling voluminous personnel records. preference to employees’ children. ii) Department level.Getting Human Resources Impact of Pressure Groups: Pressure groups such as unions.. the Government of India specifies the objectives of HRP in successive five-year plans.B. 5. control and assessment. and iii) Divisional level. Lead Time: The long lead time is necessary in the selection process and for training and deployment of the employee to handle new knowledge and skills successfully. sons of the soil etc. b) Sectoral Levels: Central and State Governments. (1997). Sultan Chand & Co. Figure 1 clearly indicates the HRP process. d) Unit Level: HRP for a particular department/sector of an industry is prepared at this level. HRP is a continuous process of review.4 PROCESS OF HRP The process of HRP is entirely based on the corporate plans and objectives. agricultural sector etc.3 LEVELS OF HRP HRP is carried out at the following levels: a) National Level: The Central Government plans for human resources at the national level. c) Industry Level: HRP for specific industries are prepared by the particular industries. industrial sector. 1 (a) (b) (c) (d) (e) 2 Demand Forecast (a) Numbers (b) Job Categories (c) Skill requirements Corporate Analysis Objectives and Strategies Company Organization Plans Market forecasts and Budgets Financial Plans Production Targets 4 Manpower Gaps (a) Surplus of numbers and skills (b) Shortages 5 Manpower Plans Recruitment and Selection Training and Development Redeployment/Retrenchmant Redundancy Retention/internal mobility Productivity Monitoring and Control Figure 1: Human Resource Planning Process s Manpower Objectives and Policies 3 Supply Forecast (a) Manpower inventory (b) Losses and additions (c) Externat Supply (a) (b) (c) (d) (e) (f) 3 0 Source: Gupta. displace persons. For example. For example. It again includes the following levels. C. formulate HRPs for different sectors. Modify Organizational Plans s . 5. Human Resource Management.

... of workers..................................... Techniques of HR demand forecast are discussed below.............The major stages of HRP are as follows: a) Analysing Operational Plans It consists of the following substages: i) ii) Objectives and strategic plans of the company are analyzed.....5 a) TECHNIQUES OF HR DEMAND FORECAST Managerial Judgement: In this.. total output/no......... 3 1 .............................. goals................................ if not found then shortage is shown............ ........g..... experienced managers estimate the human resource requirements for their respective departments on the basis of their knowledge of expected future work load and employee efficiency.......... b) c) d) Activity B Describe how human resource demand forecast is carried out in your organization or an organization you are familiar with.. finance................... Future ratios are basing on the past trend....... Manpower Gaps: Depending upon the requirement existing surplus human resources having desired skills are matched........................ Ratio-Trend Analysis: Under this method ratios (e. direct workers/indirect workers) are calculated on the basis of past data............. some of which are given below....... 5........................................g..... of employees required)....... Plans concerning technological...................... no............................ ....................... Human Resource Planning iii) Future plans................ production................. ................. and objectives of the company are also taken into account................................................................................... Replacement needs........................... ................................. investment..................... production are analyzed and HRP is prepared keeping these in mind.. a) b) Employment trends.................................... Work-study Method: In this method time and motion study are used to analyze and measure the work being done....................6 FACTORS AFFECTING HR DEMAND FORECASTING Human Resource Demand Forecasting depends on several factors..................... the supply forecast of human resources is carried out in an organization....................... Mathematical Models: It expresses the relationship between independent variable (e...... 5............................. iii) Supply Forecast: Basing on the existing HR inventory and the demand forecast... b) Human Resource Demand Forecasting HR demand forecasting mainly involves three sub functions: i) ii) Demand Forecast: Process of estimating future quantity and quality of human resources required............................... etc............ sales..g.) and dependent variables (e............

Participation: HRP will be successful if all in an organization are participating. Absenteeism. HRIS is not much strong. HRP is the process of determining the number and kind of human resources required in an organization for a specific time period in future. Describethe process of HRP with illustrations. seasonal employment.8 a) b) c) d) e) f) g) GUIDELINES FOR MAKING HRP EFFECTIVE Tailormade: HRP should be balanced with corporate objectives. 5. Adequate organization: HRP process should be adequately/properly organized. Discuss the problems in HRP and state measures to overcome them. 5. 5.10 1) 2) 3) 3 2 SELF ASSESSMENT QUESTIONS Explain the objectives of HRP. Information system: An adequate database should be developed for facilitating HRP. which cannot be a cent per cent accurate process. labour turnover. Employee resistance: Employees and their unions feel that by HRP. HRP is formulated at various levels. HRP is important for an organization because of the changing scenario. Briefly review the forecasting techniques. Top management support: Before starting the HRP process the support and commitment of top management should be ensured. demand forecasting. their workload increases so they resist the process. so industries avoid. supply forecasting and identifying manpower gaps. Appropriate time: The period of HRP process should be appropriate to the needs and circumstances of an organization. In the absence of reliable data it is not possible to develop effective HRP. Uncertainties: Labour absenteeism.Getting Human Resources c) d) e) Productivity. technological changes and market fluctuations are the uncertainties which HRP process might have to face.7 a) b) c) PROBLEMS IN HRP PROCESS Inaccuracy: HRP is entirely dependent on the HR forecasting and supply. Balanced focus: The quantity and quality should be stressed in a balanced manner. 4) . Inefficient information system: In Indian industries. The main problems in the process of HRP are as follows: d) e) 5.9 SUMMARY To sum up. and Expansion and growth. The main steps involved in it are analysis of organizational plans. Few guidelines to improve effectiveness of HRP process are discussed below. Time and expense: HRP is time consuming and expensive exercice.

PHI. 3 3 . Human Resource Management. (1999). New Delhi. New Delhi.11 FURTHER READINGS Human Resource Planning Gupta. New Delhi. S.5. Aswathappa.B. B. (2001). K. Pattanayak. Chand & Sons. C. Human Resource and Personnel Management. Human Resource Management. Tata McGraw Hill. (1997).

and the need for care in using them.9 Introduction Some Definitions The Process of Recruitment Methods of Recruitment Selection Selection Tests Interview Physical Examination Reference Checks 6.17 Further Readings 6.4 6.Getting Human Resources UNIT 6 ATTRACTING THE TALENT: RECRUITMENT.5 6. explain the purpose of induction and how it is carried out.7 6. as we have already .1 3 4 INTRODUCTION The most valuable asset of any large-scale organization is the high-calibre employees.14 Road Map for Successful Outsourcing 6.10 Final Decision 6. explain the purpose and types of interviews.16 Self Assessment Questions 6. describe the process of application scrutiny. OUTSOURCING Objectives After completion of the unit. and the uses of various psychological tests in the evaluation of candidates. SELECTION. you should be able to: l explain the need for spelling out job specification as the starting point for the process of selection. and discuss the function of outsourcing.3 6.12 Induction 6.13 Outsourcing 6.11 Placement 6. l l l l l l l l Structure 6.15 Summary 6. explain and evaluate various methods of recruitment.6 6. name various sources which can be used for attracting the desired types of manpower. explain the need for. types of.2 6. their limitations. At the stage of Human Resource Planning. explain the need for and the process of initial screening. state.1 6.8 6. Finding right people and putting them at right job is the most important challenge for any organization.

that is. you will notice that this process is negative in nature in the sense that rejection of candidates is involved. Keeping in mind the forecast the function of attracting the best available talent is carried out by an organization. Placement Placement is the determination of the job for which a selected candidate is best susited and assigning that job to him. The ideal situation is ‘the right man for the right job’. The third step of placement follows selection and a particular job is assigned to the selected person. In the next stage of selection all the applicants are screened to find their suitability for the job and the best one is selected. etc. 3 5 . and choosing the best from the suitable candidates and rejecting the others. Selection Selection is the process of examining the applicants with regard to their suitability for the given job or jobs.2 SOME DEFINITIONS Recruitment Recruitment is the process of identifying the prospective employees. recruitment. etc. All these are discussed in this unit. 6. First he is recruited. The primary purpose of induction is to ‘sell’ the company to the new employee so that he may feel proud of his association with the company. It involves functions like. motivation. accident rates. work.discussed in the previous unit. After that he is introduced to his job and to his organization so that he may understand the environment in which he has to work. A proper placement of a worker reduces employee turnover.. This calls for fixing the ‘job specifications’ which may also be called ‘man specifications’. It is a positive action as it involves inviting people to apply. This is called ‘orientation’ or ‘indoctrination’. selection. stimulating and encouraging them to apply for a particular job or jobs in an organization. absenteeism. Outsourcing 6. The purpose is to have an inventory of eligible persons from amongst whom proper selection of the most suitable person can be made. Selection. and improves morale. Thus. Having defined these four processes. Induction Induction is introducing an employee to the job and to the organization.3 THE PROCESS OF RECRUITMENT Preparation for Recruitment Before you think of inviting people to apply for a job you have to decide what types of persons are to be invited and what their characteristics should be. the human resource requirement is forecasted. we shall describe them in some detail in the following paragraphs. his attention is drawn to the existence of a possible opening for him and he is invited to apply for it. Attracting the Talent: Recruitment. induction. Their Inter-relationship The above are the four steps taken in the order given before a person starts his training for the job to which he is assigned.

...................................... initiative and drive....................................... colour discrimination.... ...................... (c) to some extent......................................................................... These may refer to height................................................................ 5) . vision..... Please give below the ten most important elements of your job specification..... voice.............. .......................... or submissiveness............... emotional stability. or (d) not at all........ (b) substantially.............. (c).. These are not formally listed but have to be kept in mind during the process of recruitment.......... arithmetical abilities.... job specification will be different for each job........................... hand and foot coordination............................ 8) ........................................ age-range................... to read............. The particular physical abilities and skills necessary for a given job have to be specified.... ... ............................................... (b)............................... Different jobs require different degrees of such abilities and the more important ones should be specified...... ................................................. poise......... weight. manners.........Getting Human Resources Job specifications are based on job description which is dependent upon the nature and requirements of a job................. .................................... .................................................... for a heavy job you need a strong............................... 3 6 Extent of meeting (a)........................... ability – plan......................... 3) ......................................... 9) ..................... ......... ... ability to estimate...................... heavy and thick-set body........ memory.............................................................. leadership. Emotional and Social Specifications: These include characteristics which will affect his working with others......................... ............... scientific faculties..................... to think and concentrate....................................... etc............. like personal appearance................... Behavioral Specifications: Certain management personnel at higher levels of management are expected to behave in a particular manner............................. 2) ....... cooperativeness......................................... for assembly of a TV set or some other electronic equipment good vision is required............................................ Activity A Please describe below your job as carefully and precisely as you can........................... 10) ............... finger dexterity.......................... Thus........................................... etc...................................................................................................................... 7) ..... etc............................... judgement....... Also evaluate yourself in respect of each element and write against it whether you meet it (a) fully......... socia1 adaptability...................... for a typing job you need finger dexterity....... 4) .... ...... extroversion or introversion........................... aggressiveness............ Physical Specifications: For certain jobs some special physical features may be required................ .......... to write............. (d) ................ Mental Specifications: These include intelligence..... skill in dealing with others......... ...................... Element 1) ......................................... For example............................................. selection and placement.................. We shall explain below the various elements of job specification.......... 6) .. ........ ............................. motor coordination...

The point to be considered here by the organization is. Moreover. These include college students. the unemployed with a wider range of skills and abilities. and others not in the labour force. may not know enough about its service or product or processes to participate effectively. balancing the risk of mediocre performance. In respect of people selected under this system. however. You will realize now that dependence on just one of the sources is not in the interest of an organization. would like to rehire. Attracting the Talent: Recruitment. Likewise. The level of specialization required of employees: The principal source in many organizations may be the ranks of the present employees who have received specialized training. discouraging new blood from entering an organization. one has to take chances with the selected persons regarding their loyalty and desire to continue. Selection. training and education. It may lead to inbreeding. 1) Effect of the policy on the attitude and actions of all employees: Employees. this source never ‘dries up’. like the new entrants to the labour force without experience. Outsourcing 2) 3) 4) 5) 3 7 . The organization has to make larger investments in their training and induction. the real capable hands may be left out. with no experience in the firm. new people with different ideas may be taken from outside. for some time at least. If promotion is based on seniority. A policy of preferring people from within is advantageous as it improves the morale of the employees and promotes loyalty among them towards the organization. there are good and bad points about external sources. The general application of the ‘promotion from within’ policy may encourage mediocre performance. if not. The need for and availability of originality and initiative within the organization: If the organization feels that it is training its people for these qualities it may prefer its own people. no doubt. selection may better be done on an open basis. The degree of emphasis on participation by employees at all levels: New employees from outside. It must depend on both in a ratio to be fixed considering various factors.Sources of Manpower There are two categories of sources of supply of manpower— Internal and External. If it is not accepted. how important is the loyalty of the employees to it. Some of these factors are described below. These include those who quit voluntarily or those on production lay-offs. or whom the company. Internal Sources: These include personnel already on the pay-roll of the organization as also those who were once on the pay-roll of the company but who plan to return. like married women. This also helps employers as they are in a better position to evaluate those already with them and as these people require no induction. It also helps to bring new ideas into the organization. however. Acceptance of seniority principle: The policy or promotion from within will succeed only if management and employees accept the seniority principle with or without suitable modifications for promotion. suffers from some disadvantages. The policy of preferring internal candidates. the retired experienced persons. feel more secure and identify their own long-term interest with that of the organization when they can anticipate first charge at job opportunities. External Sources: These sources lie outside the organization. These sources provide a wide market and the best selection considering skill.

like the IITs and IIMs. . are used. Manned Exhibits: The organizations send recruiters to conventions and seminars. management consulting firms. also known as Employment or Labour Exchanges. state agencies. Whereas all types of advertisements can be made in newspapers and magazines. for example. send their brochures indicating job openings. future prospects. accountants. who normally provides help in attracting employers arranging interviews. employee contacts with public. 3 8 . For technical. engineers and executives. either after visiting the organization’s employment office or making enquiries by mail or phone. A well thought-out and planned advertisement for an appointment reduces the possibility of unqualified people applying. These include commercial and private employment agencies. assistance in getting jobs. advertising in newspapers and professional and technical journals is made. setting up exhibition at fairs. on the radio.4 METHODS OF RECRUITMENT All methods of recruitment can be put into three categories: (a) Direct Methods. On the basis of these students who want to be considered for the given job (s) are referred to the company recruiter. Waiting Lists: Many firms lean heavily on their own application files. labour and apprenticeship help. keep in touch with them. When qualified and experienced persons are not available through other sources. State or Public Employment Agencies. furnishing space and other facilities and providing student resumes.Getting Human Resources 6. (b) Indirect Methods. only engineering jobs should be inserted in journals of engineering. like counselling. high schools can be extensively used. manned exhibits and waiting lists. trade and professional journals. friends and acquaintances. Schools and Colleges: For clerical. These institutions usually have a placement officer a teacher-in-charge of placement. Because of their specialization. placement offices of schools. etc. colleges. The companies maintain a list of such institutions. friends and relatives. salesmen. a) Direct Methods include sending recruiters to educational and professional institutions. Private Employment Agencies specialize in specific occupation like general office help. and using mobile offices to go to the desired centres. university departments and specialized institutes. c) Third-Party Methods: Various agencies are used for recruitment under these methods. in. technical workers. are the main agencies for public employment. colleges and professional associations. b) Indirect Methods cover advertising in newspapers. Such records prove a very useful source if they are kept up-to-date. candidates can assess their abilities and suitability for the position and only those who possess the requisite qualifications will apply. recruiting firms. they can interpret the needs of their clients and seek out particular types of persons. These agencies bring together the employers and suitable persons available for a job. and (c) Third-Party Methods. etc. labour and wage rates. technical journals and brochures. only particular types of posts should be advertised in the professional and technical journals. If the advertisement is clear and to the point. Employees’ Contact with the Public: The employees of the organization are told about the existence of particular vacancies and they bring this to the notice of their relatives. etc. They also provide a wide range of services. indoctrination seminars for college professors. computer staff. information about the labour market. These records list individuals who have indicated their interest in jobs. managerial and professional jobs.

.................. ......................................................... and ‘pirates’......... b) Think of the various sources tapped by your organization in getting employees for your Section/Department and write below in order of importance the first five......................... i....................................................... Most industrial units rely to some extent on this source................................... 4) ... as you can guess..................... Casual Labour Source is one which presents itself daily at the factory gate or employment office..... Unions may be asked for recommendations largely as a matter of courtesy and an evidence of good will and cooperation...................... Trade Unions are often called on by the employers to supply whatever additional employees may be needed................................................................................................. ............ Indoctrination Seminars for College Professors: These are arranged to discuss the problems of companies to which professors are invited......................................... is the most uncertain of all sources.......................................... .................................................... ‘raiders’... 1) ........ 5) ... .....................................................e......................... Outsourcing Activity B a) Recall your first appointment to the present organization and write below which of the above mentioned sources of recruitment was used by the organization................................................................................................ Temporary Help Agencies employ their own labour force......... This................ This may create problems for the organization.......... both full-time and parttime and make them available to their client organizations for temporary needs........................... Deputation: Persons possessing certain abilities useful to another organization are sometimes deputed to it for a specified duration........ ............................... 2) ................. This source................. is likely to encourage nepotism......................................................................................................... persons of one’s own community or caste may only be employed................. marketing and production engineers’ posts........ Selection. Friends and Relatives of Present Employees constitute a good source from which employees may be drawn........ 3 9 ............Executive Search Agencies maintain complete information records about employed executives and recommend persons of high calibre for managerial.... you will realise......................................................... Professional Societies may provide leads and clues in providing promising candidates for engineering............. Visits and banquets are arranged so that professors may be favourably impressed and later speak well of the company and help in getting required personnel............................................................. Some of these maintain mail order placement services.. such employees do not easily become part of the organization.................... however.............................. .............................. 3) ... Attracting the Talent: Recruitment......................................... Ready expertise is available but............ technical and management positions........................ These agencies are looked upon as ‘head hunters’..

Yoder calls these hurdles ‘go. he is selected for further process and. he is eliminated. The Selection Process You would recall that selection process involves rejection of unsuitable or less suitable applicants. skill. These hurdles act as screens designed to eliminate an unqualified applicant at any point in the process. however. these hurdles need not necessarily be placed in the same order. if not. the interviewer should be courteous. those who do not qualify. It is essentially a process of picking out the man or men best suited for the organization’s requirements. salary expected. This is a crude screening and can be done across the counter in the organization’s employment offices.5 SELECTION Selection. Due care should be taken so that suitable candidates are not turned down in a hurry. 4 0 Work History References Physical Examination Recommendation .are dropped out. Moreover. This technique is known as the ‘successive hurdles technique’. Not all selection processes. kind. receptive and informal.Getting Human Resources 6. experience. include these hurdles. experience and other qualities with a view to matching these with the requirements of a job. Since this provides personal contact for an individual with the company. Interview with Supervisor Employment Application Þ Second Interview Testing Prelimmary Interview Application Form Rejections Figure 1: Successive Hurdles in the Selection Process Initial Screening or Preliminary Interview This is a sorting process in which prospective applicants are given the necessary information about the nature of the job and also. This may be done at any of the successive hurdles which an applicant must cross. etc. If the candidate is found to be suitable. Figure 1 gives these hurdles. Those who qualify a hurdle go to the next one. as you have seen earlier. Their arrangement may differ from organisation to organization. necessary information is elicited from the candidates about their education. This is done by a junior executive in the personnel department. The complexity of the process usually increases with the level and responsibility of the position to be filled. no-go’ gauges. is the process of securing relevant information about an applicant to evaluate his qualifications.

It is often possible to reject candidates on the basis of scrutiny of the applications as they are found to be lacking in educational standards. The applicant is asked to give details about age. and (ii) to provide a starting point for the interview. complex and detailed information. performance or attitude. Attracting the Talent: Recruitment. shorthand and in operating calculators. adding machines. The application can be used in two ways: (i) to find out on the basis of information contained therein as to the chances of success of the candidate in the job for which he is applying. general and easily answerable. religion and place of birth has been regarded as evidence of discriminatory attitudes and should be avoided. when applications arc received in direct response to an advertisement and without any preliminary interview.. Tests seek to eliminate the possibility of prejudice on the part of the interviewer or supervisor. Potential ability only will govern selection decisions. Reference to nationality. a) Achievement or Intelligence Tests These are also called ‘proficiency tests’. Oral tests may be supplemented by written. Purpose of Tests: The basic assumption underlying the use of tests in personnel selection is that individuals are different in their job-related abilities and skills and that these skills can be adequately and accurately measured.When a candidate is found suitable. one for managers. The other major advantage is that the tests may uncover qualifications and talents that would not be detected by interviews or by listing of education and job expenence. 6. (b) Aptitude or Potential Ability Tests. This is done where no application forms are designed. Selection. Outsourcing Application Scrutiny You might have seen that sometimes applications are asked on a plain sheet. 4 1 . work experience and references. the other for supervisors and a third for other employees. An application form should be designed to serve as a highly effective preliminary screening device. experience or some other relevant eligibility and traits. These are of two types: Test for Measuring job Knowledge: These are known as ‘Trade Tests’.g. These measure what the applicant can do. e. dictating and transcribing machines or simple mechanical equipment. These measure the skill or knowledge which is acquired as a result of a training programme and on the job experience. an application form is given to him to fill in and submit. particularly. marital status. while others may require elaborate. These are administered to determine knowledge of typing. Different types of application forms may be used by the same organization for different types of employees. These are primarily oral tests consisting of a series of questions which are believed to be satisfactorily answered only by those who know and thoroughly understand the trade or occupation. educational qualifications. These tests and what they measure are described below. (c) Personality Tests. race.6 SELECTION TESTS A test is a sample of an aspect of an individual’s behavior. It can also be a systematic procedure for comparing the behavior of two or more persons. Some forms are simple. Types of Tests: The various tests used in selection can be put in to four categories: (a) Achievement or Intelligence Tests. picture or performance types. caste. and (d) Interest Tests.

and spatial visualisation.Q. maintenance workers. These tests are given to predict potential performance and success for supervisory or managerial jobs. patience. self-sufficiency. packing.) of a person and enable us to know whether he has the mental capacity to deal with new problems. ambition. b) Aptitude or Potential Ability Tests These tests measure the latent ability of a candidate to learn a new job or skill. ‘mental alertness’. ii) Projective Tests: In these tests. dominance. speed of perception. and mechanical technicians are to be selected. sympathy. reasoning and mechanical or musical aptitude. or simply as ‘personnel tests’. These are primarily used in the selection of workers who have to perform semi-skilled and repetitive jobs. in which some problems are posed to a group and its members are asked to reach some conclusions without the help of a leader. c) Personality Tests These discover clues to an individual’s value system. decisiveness. The way in which he responds to these stimuli depends on his own values. initiative. These are of three types: i) Mental Tests: These measure the overall intellectual ability or the intelligence quotient (I. ‘mental ability’. ii) Mechanical Aptitude Tests: These measure the capacity of a person to learn a particular type of mechanical work. They are expressed in terms of the relative significance of such traits of a person as selfconfidence. These tests usually relate to a leaderless group situation. These are useful when apprentices. d) Interest Tests These tests are designed to discover a person’s areas of interest and to identify the kind of work that will satisfy him. iii) Psychomotor or Skill Tests: These measure a person’s ability to do a specific job.. These determine an employee’s fluency in language. maturity and his characteristic mood. his emotional reactions. his ability to undergo stress and his demonstration of ingenuity under pressure. Through these tests you can detect peculiarity or defects in a person’s sensory or intellectual capacity. motives and personality. his ability to adjust himself to the stresses of everyday life and his capacity for interpersonal relations and for projecting an impressive image of himself. a candidate is asked to project his own interpretation onto certain standard stimuli. and are assessed in the form of answers to a well-prepared questionnaire. impulsiveness. mechanics. reasoning. machinists. These focus attention on particular types of talent such as learning.’Instruments’ used are variously described as tests of ‘intelligence’. optimism. interction. conformity. emotional control. inspection and so on. a typing test would provide the material to be typed and note the time taken and mistakes committed. iii) Situation Tests: These measure an applicant’s reaction when he is placed in a peculiar situation. The interest tests are used for vocational guidance. The tests help in assessing a person’s motivation. This is done by giving him a piece of work to judge how efficiently he does it. judgement. These are administered to determine mental dexterity or motor ability and similar attributes involving muscular movement. control and coordination. dominance. submission and self-confidence. For example. like assembly work. fear. integrity. distrust. i) 4 2 . objectivity. memory.Getting Human Resources Work Sample Tests: These measure the proficiency with which equipment can be handled by the candidate. testing. and stability. sociability. The personality tests are basically of three types: Objective Tests: These measure neurotic tendencies. tact.

............. iv) Each test used should be assigned a weightage in the selection..................... ................................... one should not conclude that a hundred per cent prediction of an individual’s on-thejob success can be made through these tests. ....... ... This is necessary even though ‘standard’ tests are available now under each of the above categories............ Personal interview is the most universally used tool in any selection process..Limitations of Selection Tests: From the basic description of tests described above........................................................ iii) Tests should first be validated for a given organization and then administered for selection of personnel to the organization........................ 6................. and/or answering queries before the test begins.............. v) Test scoring........7 INTERVIEW We shall now discuss the post application form interview and not the preliminary interview............................................................................................................ Moreover................................................................................................................................ Outsourcing Activity C a) b) Was any psychological test administered to you for selection or promotion? Yes No If yes............................................. at best..................... Selection............. Norms developed dsewhere should not be blindly used because companies differ in their requirements....................................................................... Attracting the Talent: Recruitment................................ Tests are useful when the number of applicants is large................................................. .......................... Precautions in using Selection Tests: Test results can help in selecting the best candidates if the following precautions are taken: i) Norms should be developed as a source of reference on all tests used in selection and on a representative sample of people on a given job in the same organization................... 4 3 .................................................. ... ....................................... tests will serve no useful purpose if they are not properly constructed or selected or administered............. ........................................................................... These tests.................................................................... c) Can you fit it into one of the above mentioned categories? Stage Required to do Category of Test First Selection as................................. reveal that candidates who have scored above the predetermined cut-off points are likely to be more successful than those who have scored below the cut-off point..... can you recall at what stage of your career was it given and what were you required to do? ............................................................................................................................ administration and interpretation should be done by persons I having technical competence and training in testing........ culture.............. Later promotion as .... organization structure and philosophy............... ii) Some ‘Warm up’ should be provided to candidates either by giving samples of test.........

(i) obtaining information. He may use the plan with some amount of flexibility. how each will make his presentation and how they will react to each other’s views and presentation. and (iii) motivation.. A friend or a relative of the employer may take a candidate to the house of the employer or manager where this type of interview may be conducted. asking them one after another. the modality of interview and so on. place of birth. The theory behind it is that if the candidate is found good in his area of special interest. The interviewer has a plan of action worked out in relation to time to be devoted to each candidate. however. type of information to be sought. previous experience. Non-directive Interview: This is designed to let the interviewee speak his mind freely. may ask a few questions. Formal Interview: This held in a more formal atmosphere in the employment office by the employment officer with the help of well-structured questions. The candidate should be given information about the company. how they will participate in the discussion. The candidates may. The interviewer is a careful and patient listener. This is very useful to test the behavior of individuals under disagreeable and trying situations. It should also help in establishing a friendly relationship between the employer and the applicant and motivate the satisfactory applicant to want to work for the company or organization. A list of questions and areas are carefully prepared. alternatively. it may turn out to be a one-sided affair. precision and exactitude. education and interests. All the candidates may be brought together in the office and they may be interviewed. Stress Interview: This is designed to test the candidate and his conduct and behavior by putting him under conditions of stress and strain. information to be given. Depth Interview: This is designed to intensively examine the candidate’s background and thinking and to go into considerable detail on a particular subject to special interest to the candidate. Types of Interview Informal Interview: This is may take place anywhere. The idea is to give the candidate complete freedom to ‘sell’ himself without encumberances of the interviewer’s questions. Panel Interview: This is done by members of the interview board or a selection committee. Planned Interview: This is a formal interview carefully planned. It pools the 4 4 . An employment interview should serve three purposes. the chances are high that if given a job he would take serious interest in it. The employer or a manager in the personnal department. It should provide an appraisal of personality by obtaining relevant information about the prospective employee’s background. The interviewer goes down the list of questions. training work history. (ii) giving information. The time and place of the interview are stipulated by the employment office. It is not planned and is used widely when the labour market is tight and you need workers very badly. etc.Getting Human Resources Meaning and Purpose: An interview is a conversation with a purpose between one person on one side and another person or persons on the other. The other two purposes are generally not served. Patterned Interview: This is also a planned interview but planned to a higher degree of accuracy. Group Interview: This is designed to see how the candidates react to and against each other. the specific job and the personnel policies. It helps only in obtaining information about the candidate. In practice. prodding whenever the candidate is silent. be given a topic for discussion and be observed as to who will lead the discussion. like name. This is done usually for supervisory and managerial positions. viz.

artistic Disposition: Self-reliance. Interview Rating: Important aspects of personality can be categorized under the following seven main headings: l l l l Attracting the Talent: Recruitment. The importance of each of these points will vary from organization to organization and from job to job. On the basis of information gathered through an interview. bearing. Hence. biases. Intelligence: Basic and ‘effective’. l l l This is called ‘The Seven Point Plan’. Interests: Intellectual. Special Aptitudes: Written and oral fluency of expression. these should be assigned weightage according to their degree of importance for the job. Their effectiveness can be improved if the following points are kept in mind by an interviewer: l l l l An interview should have a definite time schedule with ample time for interview. (iii) above average. The interviewer should listen carefully to what the applicant says and the information collected should be carefully recorded either while the interview is going on or immediately thereafter. Outsourcing Physical Make-up: Health. Emotional maturity and a stable personality. Selection. social background and experience. Sensitivity to the interviewee’s feelings and a sympathetic attitude. acceptability. 4 5 . Some of these are mentioned below: l Subjective judgement of the interviewer may be based on his prejudices. Circumstances: Domestic. Some managers believe that they are good at character analysis based on some pseudo-scientific methods and are guided by their own abilities at it. numeracy. future prospects. social. Attainments: Education. Marks should be allotted to each of these. The interviewer’s experience may have created a close association between some particular trait and a distinctive type of personality. each candidate should be rated in respect of each point given above as: (i) outstanding. (ii) good. organizational ability. The impersonal approach should be avoided. appearance. The candidate may be asked to meet the panel individually for a fairly lengthy interview. Limitations of Interviews: Interviews have their own limitations in matters of selection. physically active. physique. Extrovert behavior and considerable physical and mental stamina. and the score for each point is arrived at by multiplying it by weights and the total of all these will determine the final position of a candidate at the interview. Guidelines for Improving Interviews: Not all interviews are effective. motivation. age. speech.collective judgement and wisdom of members of the panel. dislikes. occupational training and experience. likes. l l l Qualities of ‘Good’ lnterviewers as: A good interviewer should have the following qualities: l l l l Knowledge of the job or other things with which interviews are concerned. It should not be hurried. Interview should have the necessary element of privacy. nature. practical. One prominent characteristic of a candidate may be allowed to dominate appraisal of the entire personality. etc. (iv) below average or (v) unsatisfactory. administrative skill.

.... It discovers existing disabilities and obtains a record thereof.... like phrenology... ....... l l Pseudo-Scientific Methods of Selection: In the past...... These impressions were gathered through pseudo-scientific methods....... .. iv) It helps in placing those who are otherwise employable but whose physical handicaps may necessitate assignment only to specified jobs....8 PHYSICAL EXAMINATION Applicant who get over one or more of the preliminary hurdles are sent for a physical examination either to the organization’s physician or to a medical officer approved for the purpose. The interviewee should be told where he stands—whether he will be contacted later. Types of interviews 1 . Level of employees ................................. .. ... ......... Purposes: A physical examination serves the following purposes: i) ii) It gives an indication regarding fitness of a candidate for the job concerned.... Activity D Please find out from your Personel Department which of the above mentioned types of interviews they use for the purpose of selection...... broad jaws signify tenacity and so on........ The interview should end when sufficient information has been gathered.... .. Points to be judged .. 4 6 ........ What do they aim to judge through each of these interviews and for selection of what level of employees are these used? Write below the information you collect............ ........ whether he is to visit another person........................ ................ 3 ...... stereotyped impressions of personality and characteristics were used as a basis of selection....... physiognomy and graphology... thin lips indicate determination............. ... .................. iii) It helps in preventing employment of those suffering from some type of contagious diseases.. ........................ We shall briefly describe below these methods for your background knowledge only: Phrenology: Here it is believed that the strength of each faculty is indicated by prominent bumps on certain parts of the skull. ... for example.. .......... Graphology: Here it is believed that there is a close relationship between handwriting and personality........ and to some extent even now..... which may be helpful later in deciding the campany’s responsibility in the event of a workman’s campensation claim................. ....... 4 ...... ......... ...Getting Human Resources l Attention should be paid not just to the words spoken.............................. .............. 6............ or it appears that the organization will not be able to use his abilities..... 5 ................. 2 . .. Physiognomy: Here it is believed that there is a definite correlation between facial features and psychological functions and behaviour................. but also to the facial expressions and mannerisms of the interviewee..

Specia1 senses—visual and auditory activity. 6.10 FINAL DECISION Applicants who cross all the hurdles are finally considered. His physical measurements—height. They are approached by mail or telephone and requested ta furnish their frank opinion. Attracting the Talent: Recruitment. Selection. X-ray examinatian of chest and other parts of the body. Clinical examinatian—eyes. If there are more persons than the number required far a job the best ones. blood etc. absenteeism and accident rates and improves marale. Check-up of blood pressure and heart. Meaning As explained earlier. Neuro-psychiatric examinatian. General examinatian—skin. individual employees have to be put under individual supervisors with the approval of the latter. it is introduction of an employee to the job and the organization. those with the highest scores are finally selected. 6. often either no response is received or it is generally a favarable response. particularly when medical histary or a physician’s observations indicate an adjustment problem. nose.e. The primary purpose is to ‘sell’ the company to the new employee so that he may feel proud of his association with the company.Contents of Physical Examination: Physical examination covers the following: l l l l l l l l l l The applicant’s medical history. Examinatian of chest and lungs. 4 7 . In the first case also his approval is also necessary but it should be done early in the selection process. They are assured that all information supplied would be kept confidential.9 REFERENCE CHECKS The applicant is asked to mention in his application the names and addresses of three such persons who usually know him well. weight. therefore. A proper placement reduces employee turnover. without incurring any liability.12 INDUCTION This is the last activity in relation to a newly employed person before he is trained for his job. Yet. 6. i. Often more than one person may be selected for the jobs of similar nature. musculature and joints. In the second case. Pathological tests of urine.11 PLACEMENT Sometimes a particular person is selected for a given jab. These may be his previous employers. or professional colleagues. throat and teeth. 6.. Outsourcing You wauld realize that the importance of these characteristics varies from job to job and. about the candidate either on specified points or in general. ears. friends. etc. different weightages have to be given to each far an overall evaluation.

But companies that approach outsourcing as one element of an overall business strategy are applying some specific best practices to reach their goals more quickly and with fewer roadblocks. The significance of the job with all necessary information about it including job training and job hazards. Structure of the organization and the functions of various departments. the location of facilities and is told about the organization’s specific practices and customs. its history and products. promotions. Follow-up orientation by either the personnel department or the supervisor: This is conducted within one week to six months of the initial induction and by a foreman or a specialist. Grievances procedure and discipline handling. safety and accident prevention. The purpose is to help an employee to build up some pride and interest in the organization. transfer. suggestion schemes and job satisfaction. process of production and major operations involved in his job. and how he fits into the organization. Through personal talks. For this he must know them. objectives and regulations. Companies that develop candid internal communication plans about sourcing strategies are far less likely to experience . Opportunities. wasted time and expenditure. Induction Programme A good induction programme should cover the following: l The company. cost-cutting opportunity are almost always disappointed with the results. Personnel policy and sources of information. The purpose is to enable the employee to adjust with his work and environment. The purpose is to find out whether the employee is reasonably well satisfied with him. holidays and vacations. Social benefits and recreation services. Employee’s own department and job. Any neglect in the area of induction and orientation may lead to high labour turnover. practices. confusion. absenteeism. the way they work and also the policies and practices of the organization so that he may integrate himself with the enterprise. tardiness and. Specific orientation by the job supervisor: The employee is shown the department and his place of work. methods of reporting. guidance and counselling efforts are made to remove the difficulties experienced by the newcomer. l l l l l l l l l l An induction programme consists primarily of three steps: General orientation by the staff: It gives necessary general information about the history and the operations of the firm. 6.Getting Human Resources Purpose and Need An employee has to work with fellow employees and his supervisor. Rules and regulations governing hours of work and over-time. Company policies. amenities and welfare facilities.13 OUTSOURCING Companies that see outsourcing as a short-term. Terms and conditions of service. 4 8 Communicating openly from Day 1.

Also. training executives are now working closely with the specialist vendors— the outsourcing partners to control and maintain quality and consistency of training material. China and the Eastern European nations. The potential for cost saving in the early part of the outsourcing initiative is offset by one-time relationship 4 9 . Specialized Knowledge In recent months. at less than half the cost of similar resources elsewhere. A robust educational system in developing countries. In addition to improving training effectiveness. however. For example. All these factors add up to allow corporations access to any content expert with proficient English language skills. such as India. It’s the classic “more for less” story heard everywhere in organizations today. education organizations are also under tremendous pressure to reduce time-to-train or time-to market. etc. can also be cost-effectively derived through outsourcing. be it e-learning content or classroom courseware. Eighty-four percent of the buyers of outsourcing services in Diamond Cluster’s “2004 Global IT Outsourcing Report” said they are concerned about backlash as jobs are lost to offshore outsourcers. and this provides a way to provide expertly designed e-Iearning at a reduced cost. outsourcing is often used to overcome resource shortages. such as learning management systems (LMSs). However. primary benefit of outsourcing is the significant cost saving and improvement to the bottom line.employee backlash as roles begin to move offshore. Therefore. But those same companies have probably underestimated the ripple effect of their outsourcing decisions. IT and engineering. the trend to outsource this work to specialist vendors is heightened by two other reasons-increasing need for content and increased pressure to improve the quality and consistency of training produced to meet these expanding requirements. content management systems (CMSs) and authoring platforms. Depending upon the work processes outsourced. some organizations save up to 60 percent in content development costs alone. Outsourcing needs to be implemented as a strategic initiative. provides access to highly skilled individuals in the areas of linguistics. While organizations are primarily driven to outsource training content development because of cost savings. such as consistent instructional design and ongoing content maintenance. The organization needs to be as prepared to outsource as the vendor is prepared to manage the outsourced operation. Selection. Centralization has put the onus on training management to ensure that training is not only the best of breed but is also standardized and consistent in quality. Size Does Matter Outsourcing can lead to tremendous cost savings. Outsourcing Why Outsourcing? An obvious. Saving costs is not the only reason to consider outsourcing. some training organizations have seen a shift toward centralized functions. Cost savings may also be realized by outsourcing development and maintenance of e-learning technologies. Attracting the Talent: Recruitment. Significant quality improvements. countries such as Ireland and India have significant English speaking resources that can be engaged in the design and development of learning content. organizations must remember that cost savings actually build up over time. Many organizations haven’t built the competencies or processes in-house for developing and delivering e-Iearning.

the internal training organization plays an important part in supporting the outsourcing operations by effectively managing client and vendor processes.Getting Human Resources establishment costs. so does the outsourcing industry’s need for talented HR and benefits experts who can improve how it delivers services to 5 0 . internal training organizations need to discipline the work plan—the input. To ensure a successful outsourcing relationship. Here. Client organizations can take several steps to minimize. and in the authoring tools. the role of the internal training organization has been one of the supplier to the businesses it supports. In the first wave of e-learning. This helps minimize conflict between the expectation and realization of benefit. Call them teething pains. well-aligned resource responsibilities (the process) and requirement acquisition (the input) have been shown to outsource more effectively than those without a reliable and consistent work plan that includes elements of all three-the output. but not enough fuel since they were left without enough budget to develop significant content. the benefit lies in outsourcing medium-to-Iarge contracts. the road hazards on the path to outsourcing. Still other organizations were slower to adopt e-learning. In addition to careful selection of the outsourcing partner. outsourcing proves to be the answer for many organizations. and another of a customer to the outsourcing partner. passing the efficiency on to the customer. Obviously. The organization yields a higher buyer bargain. this transition from internal development to outsourced development is fraught with road hazards. many organizations bought and invested heavily in elearning and training infrastructure. You Must Success of outsourcing initiatives largely depends upon successful requirements management and standardization of output. Size matters because it’s mutually beneficial for the organization and the vendor. reorientation of the internal training organization and selective and/or dual shore development models are two ways to mitigate the risks. and the vendor gains production efficiencies by reusing resources. training organizations need to play two roles interchangeably—one of a supplier to the business users. the economy turned sour. the input and the processes. Organizations can measure the reliability and consistency of their input and output by using the Outsourcing Maturity Matrix. For first-time offshore outsourcing clients. Just as the infrastructure was being deployed and the users could be trained. they were left without the infrastructure or the content. Even then. LCMS and CMS. As outsourcing of human resource functions grows. and when the inevitable budget cutting came. such as LMS. In the absence of outsourcing partners. Maturity Makes It Easy Organizations with a clear definition of finished deliverables (the output). The organizations faced with slashed training budgets were left in a peculiar situation-they had the vehicle to deliver training. initial time lags in development and the possibility of rework until the relationship between the organization and the vendor matures. 6. Millions of dollars were invested in the delivery systems. if not completely eliminate. Reorient. the output and the processes—prior to outsourcing.14 ROAD MAP FOR SUCCESSFUL OUTSOURCING With increasing pressure on training budgets and senior management emphasis on improved ROI of training infrastructure.

” Davidson says. It depends on their ability to produce results. chief people officer at Exult. “At most companies.clients. 5 1 .” he continues. We are working on a road-show class that we can take companies who are interested in HR outsourcing. “Pay for HR professionals can be higher at HR outsourcing firms than in house HR/benefits work. It has also helped you to realize the various precautions to be taken so that your efforts under each activity bring desired results.16 1) 2) 3) 4) 5) SELF ASSESSMENT QUESTIONS What do you understand by recruitment? Explain the process of recruitment.” he says.15 SUMMARY This unit has helped you to follow the process of selection in an organization right from the conception of an idea that a susitable person is to be put on a given job to the point of ultimately selecting the most suitable person for it.” Davidson says “Rewards can be greater in the HR outsourcing industry for benefit professionals. Discuss critically the various sources of recruitments. the industry is going to need a lot of professionals at all levels of HR experience to help with that expansion. It has helped you to understand the various activities involved in the process and the order in which these are carried out. his supervisor and the organization as a whole. the importance and function of outsourcing have been discussed. chairman of the HR Outsourcing Association and Accenture HR Services’ chief of market strategy and corporate development. “The program is in its early stage.” says Glenn Davidson. Davidson’s organization is developing a certificate program in HR. strategy and even be chief executives at companies because good HR service is our business. What are the objectives of interview? Describe the process of interview. and there are very few positions out there. HR people have an opportunity to expand their career sphere into marketing. It has given you insight into the various alternatives and methods of various activities and under what circumstances each is advisable. but salaries vary from company to company. putting him at ease and making him feel at home with his fellow employees. rich or both.” 6. Attracting the Talent: Recruitment. Selection. A whole world of opportunities opens up for you. Also. “In our industry.” Rob Ball. “You go from being a cost center to being part of the core business. Explain the ‘outsourcing’ function in an organization with suitable examples. “People who have great ideas on how to make HR services a better value proposition for large employers and who can] dramatically improve employee productivity and save money will be either famous. says that certifications and continuing education are things HR outsourcing companies look for on resumes when hiring. Explain the various types of tests used in selection process. Davidson says. “If even half the projections for growth in HR outsourcing are correct. Outsourcing Entrepreneurial culture Part of the appeal for working with an HR outsourcing company is the change in culture.” To help HR professionals groom themselves for jobs in the industry. the top HR position is senior vice president of human resources. 6. Also important is “a big-picture sense of how human resources can help large enterprises. so their employees can learn more about the trends.

Richard A. ‘Personnel Administratio—A Viewpoint and a Method’. 1982. Prentice-Hall: Englewood-Cliffs. 1982. 5 2 . Houghton Mifflin Co. Tata McGraw-Hill. Monappa. McGraw-Hill: London. P. Pigors. ‘Psychology in Industrial Organizations’. Maier. Mirza S. Norman R. Dale and Paul D. ‘The Evaluation Interview’.: New York.Getting Human Resources 6. A. ‘Personnel Management’. ‘Personnel Management and Industrial Relations’. Staudohar.17 FURTHER READINGS Fear. 1981. Yoder. Mumbai. Arun and Saiyaddain. 1984. Myers. and Charles. McGraw-Hill: New York.F. 1983.

2 7. matriculating into college.10 7. significant socialisation occurs during infancy and early childhood.3 7. We are born into this world with potential for a very wide range of behaviour.1 7.11 7. we can look in greater depth at one important segment.12 7. the person will be responsible for the socialisation of newcomers and subordinates in his/her organizations. skills. However. and learning their first job. We have all undergone this process many times. Structure 7. as managers and professionals. joining and athletic team or the scouts. and disposition that make them more or less able members of their society”. organizational socialisation. .5 7. Socialisation.UNIT 7 Objectives .7 7. l l l l l l . Certainly. People face re-socialisation on entering the first grade.4 : 7.13 7.8 7.1 CONCEPT OF ORGANIZATIONAL SOCIALISATION “Socialisation refers to the process by which persons acquire the knowledge. Mobility and Separation : . With all of these early socialisation experience it might be thought that the adult should easily adapt to new social situations. Actual and anticipatory socialisation are vitally important in all our lives. but we learn from our parents and other close associates to behave within a narrower range that is customary and acceptable. 5 3 . . . .6 7. A person will be directly involved in this process when he/she leaves college and start working career. Eventually. .9 7.

the individual adapts. One of the most important periods of adult socialisation is when the individual is on the boundary of a new organization ready to become a member. and behaviour appropriate for membership. Organizational Boundary INDIVIDUAL Values. The new CA fresh from examination in accounting theory and practice. the opening up of business and others organizations to greater participation by women and minorities not only results in the need to socialise these groups. may have to modify his approach significantly to fit actual organizational practices. is subject to new influences increasing likelihood of change. Later on the individual may be . The new lawyer is likely to have a significantly different self-image after she has been in the law firm for six months than when she started. but so does the organization. The diagram is simple but the process is complex. There is a great deal of difference between being an outsider looking in and being a full-fledged and accepted member.and require newcomers to behave in appropriate ways. Self-image and Membership Individuals hold a certain image of themselves when entering the organization. But. 5 4 We have stressed here the initial process of integrating into the organization. the process is never complete. Every individual must face continuing resocialisation to new situations throughout his or her life. and behaviour patterns obtained through earlier socialisation. Membership often requires the development of new values appropriate to the position. This undergoes changes and they interact with the organization and learn new tasks and roles. The problems associated with entrance into and adaptation to work organizations are issues of adult socialisation. attitudes. the goals. but also require change in the organizations themselves. To become a successful members. at least to some degree. just as in the world at large.Getting Human Resources 7. Beliefs.2 INDIVIDUAL AND THE ORGANIZATION: THE PROCESS OF INTEGRATION The individual joining any organization develops new values. Most organizations select individuals who can become members . attitudes. Socialisation Process Process of learning and adapting to new expectation and requirements. Figure 1: The Socialisation Process Organizational socialisation — the process of becoming an accepted member is a reciprocal process. For example. it is imposible to socialise the young child to all future roles. the individual must accommodate. Figure 1 illustrates the individual moving through the boundary to become a member. Organizational life gives opportunities to test her knowledge and skills and to assess her own strengths and weakness. In complex societies with rapid technological and sociological changes. value and practices of the organization. Every time an organization takes in a new member too.

It is quite obvious that we perceive and react to new situations in different ways because of past socialisations to life and our own personalities. The individual’s “organizational horizon” is limited (Porter. People in organizations have limited perspectives of the total organization because of differences in hierarchical level. Moreover.. while others rate it a disaster. the individual does not comprehend and experience the total organization. Never the Total Person Although we recognize that we are in constant interaction with organizations. For example. Lawler. and a subscriber to Playboy. or even change careers. we should remember that they never encompass the total person. A person may be a champion bowler. All of these changes may require the resocializaton of the person into a new situation. If you consider all organizations that have an influence. different people subject to the same organizational influences may have different perceptions. “People who perform organizational tasks must be sustained by factors outside the boundary of the organization. (Perrow. & Hackman. it is not a society. a distinctive personality. Daily. 1975). Technological and structural shifts may occur. in driving to school (an organization of which you are voluntary member) your behaviour is influenced by the speed limit (a product of governmental institutions). The organization is not the total world of the individual. Similarly workers performing the same task and receiving approximately the same rewards sometimes have significantly different perceptions about the leadership style and quality of the work environment. 1970). task requirements may be modified. move to another organization. but these affiliations are likely to be irrelevant to the organization if his task is to put two bolts on the left front door of the cars coming down the assembly line. It seeks to utilize only part of a person’s skills and abilities. friends. It is often starting for professors who receive evaluations of their courses to find vast differences among individual responses. promoted. Some students may rate their course and instructor as excellent. and social groups may change. Socialisation. and they engage only a segment of a person in accomplishing these objectives. society has shaped them in ways which affect their ability to perform organizational tasks. Furthermore. departmental affiliations. A man has a marital status. a great husband and father a member of the church choir. Mobility and Separation 5 5 . Never the Total Organization Just as the Organizational never encompasses the total. This implies that there is always limited integration or socialisation of the total person into the organization. Organizations are designed to accomplish specific purposes. the work situation requires that the individual shape a vast repertoire of potential behaviours to a narrow range of specific actions. tasks assigned..transferred. the list would likely be in the hundreds and still probably would not be complete. People must fulfill other social roles. (direct or oblique) on your life and behavior.. and interpersonal contacts. to name only a few . people come contaminated into the organization”. religious affiliations. They are most interested in the specific behavior that affects individual performance in meeting these goals. Interactions Between Individual and Organization How many organizations are you member of? How many affect your life in important ways? These are simple questions but require some though. besides. ethnic identification. Managers are interested in having individual adapt their behavior in organizationally relevant matters.

a worker has more than one role. Role performs this functions in the social system. a father and son. and satisfied.4 CONCEPT OF ROLE AND ORGANIZATIONAL SOCIALISATION The idea of role comes form sociology and it is the pattern of actions expected of a person in his activities involving others. Like it or not. the social role of club president. “Each of us learns to construct somewhat different selves for the different kinds of situations in which we are called on to perform. and an advisor and seeker of advice. we can redesign ourselves to fit the role requirements of new situations. Do you see yourself as a leader or follower? Do you have high need for power. you are also brining along your psychic self in the bargain. and a representative on the safety committee. It is unlikely that we can change our basic personalities and value systems substantially. or social affiliations? Are you aggressive or passive? People have the unique capacity for thinking about their own behavior and their impact on others. Your own self-concept plays a major part in the socialisation process. and many others. oriented to task performance. the person is likely to be motivated. and machinist. the family role of father. but we can develop new social selves in terms of new attitudes. 7. competencies. In order to be able to coordinate his work with others in an organization. achievement.3 SELF-CONCEPT AND ORGANIZATIONAL SOCIALISATION When joining an organization you are not just selling your physical and mental abilities. It arises as a result of the position one occupied in the social structure as he/she interacts with other people. Since mangers perform many different roles. they must be highly 5 6 . behavior patterns and ways of relating to others in different situations. a member of a union. Activities of manager and workers a like are guided by their role perceptions. Part of the organizational socialisation process may be learning to develop a selfconcept appropriate for the new situation. This does not imply that self-concept is totally fixed. Each role calls for different types of behaviour. performance. To some extent. that is. and for the different kinds or roles we are expected to take” (Schein. One person performs the occupational role of worker. how they think they are supposed to act in a given situation. When the self-concept is compatible with one’s organizational role and requirements. In his various roles he is both buyer and seller.Getting Human Resources 7. However. A person functions in roles both on the job and away from it. Self-concepts is the way you perceive and judge yourself. boss and subordinate. as shown in Figure 2. and satisfaction are likely to be low. The MBA graduate who thought of herself in passive terms may be thrust into a leadership position where she is effective and gratified. Within the work environment alone. a subordinate of foreman in B. Indeed. Undoubtedly role is the most complexly organized response pattern of which a human being is capable. Self-concept is of vital importance in the process of organizational socialisation. one of the important aspects of organizational socialisation is the potential modification in self-concept. 1974). He may be a worker in group A. then integration is difficult and motivation. when self-concept and organizational role are not compatible. one needs some way to anticipate their behaviour as one interacts with them. It is your way of thinking about the kind of person you really are.

this role set arises partlyfrom the nature of the job itself. staff and line. Mobility and Separation Figure 2: Each Employee performs many roles A role set is the entire configuration of surrounding roles as they affect a particular role. but his employees expect the opposite. Finally. because managers in equivalent jobs but in different companies tend to perceive and play their roles in about the same way. the incumbent in the job tends to be in role conflict because he cannot meet one expectation without rejecting the other. as shown in Figure 3 First. When role expectations of a job are materially different or opposite. and these expectations collectively make up the role set for his role as foreman. for example. Then he needs to see the role of the person he contacts. when he learned that both the controller and the personnel director expected him to allocate 5 7 . he needs to see his own role as required by the function he is performing. there tends to be poor motivation and inefficiency. They may even have difficulty communicating because they will not be talking about the same things in the same way. The existence of role expectations means that a manager or other person interacting with someone else needs to perceive three role values. A president in one company faced role conflict. and education and uneducated. difficulties may arise because a manager sees his role as that of a hard boiled pusher. and shown interacting with someone else needs to perceive three role values. That is. For example.adaptive in order to change from one role to another quickly. Obviously he cannot meet the needs of others unless he can perceive what they expect of him. such as the foreman’s role just described. The factory foreman’s role particularly requires that he be adaptive in working with the extremes of subordinate and superior. he needs to see his role as seen by the other person. technical and non-technical. Research shows that where there is wide variance in a manager’s role perception of his job and the employee’s role expectations of that job. all the different persons with whom the foreman interacts in this role of foreman have role expectations concerning the way in which he should act. Socialisation.

7. which define their rank relative to others in the system. role ambiguity exists.Getting Human Resources Manager Manager’s perception of his own role Employee Employee’s perception of his own role Manager’s perception of employee’s role Employee’s perception of manager’s role Manager’s perception of the manager’s role as seen by the employee Employee’s perception of the employee’s role as seen by manager Figure 3: Role Perception of a Manager and an Employee make a Complex Web as they Interact the new organizational planning function to their departments. Two kinds of status exist: formal and informal. Regarding the existence of role conflict research suggests that a manager bases his decision primarily on legitimacy (which expectations he thinks is more “right” and reasonably) and sanction (how he thinks he will be affected if he follows one expectation in preference to the other). It is the position which one has in an informal social system. Individuals are brought together in status systems or status hierarchies. In case role expectations are substantially unknown because of poor communication or are inadequately defined. He will also recognize the variety of roles each employee plays and will try to provide motivations and satisfactions for those several job roles. One must be higher and the other lower. The desire for status is one of the strongest motivation forcing among people at work. and it is more difficult to predict how a person in that role will act. Knowing this he should be more adaptable to each unique role relationship.5 STATUS AND SOCIALISATION The social rank of a person comparison with others in a social system is referred to as status. a fuller understanding of roles should help him know what others expect of him and how he should act. so two or more persons are required to make a status relationship. The term “lose face” is often used as a synonym for loss of status in personal interaction. His decision making should improve because he will understand why other people are acting the way they are. 5 8 . and its seriousness is widely recognized. Formal status refers to the rank of people as designated by the authority structure of an organization. Informal status refers to the social rank which others accord to a person because of their feelings toward him. Status relationships need ranking and comparison. From a manager’s point of view.

6 SOCIALISATION FACTORS IN ORGANIZATIONAL SOCIALISATION People coming into organization are not like raw material inputs possessing rigid specifications. A good deal of evidence suggests that much dissimilarity occurs because of different socialisation process for girls and boys. Barnard comments. motivations. his age did not. a very skilled young toolmaker was added to a department of older toolmakers. type of work and skill in it. One executive recently told how he worked hard for a promotion and the status it would bring him with his friends. Usually he is not as well accepted as people do not know where to place him in their status system. the educational system. and satisfactions. beginning at birth. An employee who lacks status congruence is regarded with ambiguity and anxiety by those in this group. seniority. Many studies have indicated that workers coming from different communities (rural versus urban). and somewhat imperfect human resources. Loss of status is more than loss of prestige. Some of the status influences which arise from organization are organizational level. 1976). Socialisation. pay. To the extent that individuals have faced significantly different acculturation processes in their earlier lives. previous socialisation processes. interests. heterogeneous. The young girl or boy is socialised to match these stereotypes. These groups represent subcultures that prepare people differently for functioning in work organizations. Though his skill merited the status they had. It seriously affects personality. working conditions.99% perfect and uniform. Looking at these subcultures may help us understand some of the problem that result from variations in social learning among societies or among subgroups within a society (Nord. and behaviors as appropriate for one sex or the other. The promotion finally came. There appear to be rather clearly defined sex role stereotypes of men and women (Broverman et al.” The importance of status ‘requires management to give attention to how it arises and whether management actions affect it. rather than being some general characteristic which goes wherever a person goes. “the desire for improvement of status and especially the desire to protect status appears to be the basis of a sense of general responsibility. by parents. People. for example.control and inspections will ensure that they are 99. 1972). become quite responsible in order to protect and develop their status.. and their other life experiences. These are obvious physiological differences. (2) sex roles are systematically inculcated in individuals. 5 9 . they represent different inputs to the socialisation process. therefore. Mobility and Separation 7. organizations are working with highly variable. In the socialisation process. behaviors. peers. but it required him to move another city where he was unknown. No amount of quality . He said that the promotion was hollow because in this new location his new friends were his peers and looked on him as “just another manager. and they would not accept him.” Status is important only in the particular social group where the status is accorded. but how much these contribute to later differences in the behavior men and women is the subject of much controversy. or who are in other ways differentiated by past socialisation have different expectations.Status congruence or consistency reflects the degree of agreement among various indicators of status for a person. from different social classes. We are born into two broad subcultures based on gender—male or female. education etc. Influence of Subcultures Relevance for Gender and Minority Issues The phenomenon of socio-cultural divergence can be illustrated by looking at two groups in the work force: women and minorities. He finally chose a different company having some younger toolmakers. Some of the major components of personality characteristics. In one company. They are individuals influenced by hereditary factors.

Cross-cultural Comparisons Early socialisation processes deeply affect the expectations and behaviour of a particular people. and other informational sources. However. p. Many people associate certain personality traits with different groups in our society. higher-level positions in organizations. warm.” If a women behaves in the stereotypical feminine manner. This makes the process even more difficult. aggressive. and domineering. The aspiring women generally must assume some of these traits if she is to be successful in a managerial position. and ambitious as well as less sensitive. (4) sex roles form the core of an individual’s identity or self image. and too emotional. in Japan the Nenko system of lifetime commitment to and organization is often associated with centuries old behavior pattern and value orientations.Getting Human Resources the media. such as differential recruitment of women to lower-level jobs that require dependence and passivity and excessive control that give women less power (Acker & Van Houten. Taken together. and expressive) are often perceived to be more desirable for mature adults than stereotypical feminine characteristics (more emotional. There are further indications that other factors in organizations contribute to the problem. she is likely to be considered overcautious. the more aggressive women is often described as pushy. 6 0 . 1974). This system is based on traditional Japanese values of respect for elders.. and (5) in many societies the male role enjoys the higher status. Often. objective. they are necessarily deficient with respect to the general standards for adult behaviour” (Broverman et aI. 75). objective. the Nenko system is not universal in Japan. the importance of family and group social systems. Sometimes this is useful. but if they adopt the behaviors that are designated as feminine. and mutual responsibility. It is very important for the organization and the manager not to fall into habits of stereotyping different subcultures. It takes much more than just saying. but more likely we find that it blinds us to really understanding the individual as the unique human being. incapability of decisive action. past socialisation into differentiated sex roles and conditions within organization that reinforce these differences create unique problems of socialisation—both for the woman and the organization. ruthless. behaving in essentially the same way. Stereotypical masculine traits (more logical. we are also asking for substantial change on the part of others in the organization. loyalty and collaboration. (3) individuals learn appropriate sex roles through role models and differential reinforcement. There is an additional key factors when considering the socialisation process for women and minorities entering into new. For example. This is not only process of change for the newcomer. and standards exist for women than for adults. sensitive. and behavior of the new employee. but something requiring significant resocialisation of existing members. An aggressive man. 1972. religious institutions. It is used only in the larger enterprise and does not cover temporary employees and outside contract workers. “We are opening the doors” to reach a successful accommodation. with better information we find that there are not as many differences as we expected. The effective manager is seen to have those traits most closely associated with the masculine (and adult) sex role. It also leads to additional problems for women seeking to rise in the organizational hierarchy to managerial positions. and expressive as well as less aggressive. However. Not only are we modifying the values. attitudes. If women adopt the behaviors specified as desirable for adults. they risk censure for their failure to be appropriately feminine. is called a “go-getter” or a “take-charge guy.

we can anticipate that the socialisation process will become even more complex. This is the very period when recruits can best test their own self-concepts and expectations of organizational life. and behavior patterns that different people bring into the organization. he is more receptive to cues from his environment than he will ever be again. but there are major questions about its appropriateness in other societies. Newcomers should thus be given challenging but obtainable goals rather than “snap assignments. numerous other studies seem to confirm the findings (Buchanan. 1966). “he is motivated to reduce this stress by becoming incorporated into the ‘interior’ of the company. The newcomer should play it cool and not make too many commitments to the organization. The researches have shown that very early in his organizational career an individual will develop enduring attitudes and aspirations which will have development opment of performance standards and job attitudes. we may find that we are requiring people to develop attitudes. Being thus motivated to be accepted by this new social system and to make sense of the ambiguity surrounding him. Socialisation. The development of values.This system does appear to work well within the culture. a new manager is given cues about the quality of performance that this expected and rewarded A few studies have confirmed that managers given challenging initial jobs with high expectations jobs. We see an increasing possibility of having more diverse values. and what he learns at the beginning will becomes the core of his organizational identity” (Berlew & hall. The moral seems to be that “success breeds success”. to learn about the task requirements. The newcomer is there to get acquired with the organization. 1974). The reverse of this is also true: many modern U. This becomes particularly evident in multinational corporations operating in a foreign country. Why is this so? There is a low of primacy which holds that the earlier an experience. and to size up the situation without too much involvement. Not only must individuals adjust. Mobility and Separation 7. There is very strong evidence that this approach is inappropriate for the individual and the organization. In the organizational socialisation process abroad. attitudes.” They should be involved in the establishment of these goals and be given honest feedback on performance. views. values. The newcomer entering the organization is uniquely subject to new influences. The first year is one of the most significant periods in the work career of the individual. and behavior patterns that are in conflict for the individual. When he enters the organization he is uncertain about the role that he will play and his concept of himself is thrown into question. They were socialised to have higher aspirations and performance standards. and behavior patterns during this period strongly influences future career development. From the moment he enters the organization. The organization should look the newcomer over and really not expect much. beliefs. and even life styles among different participants and groups within organizations.7 IMPORTANCE OF INITIAL JOB SOCIALISATION Some people believe that the period of early organizational socialisation is not particularly important. Finding himself in a stressful and “unfrozen” situation. As we develop more varied and complex organizations and recruit people from different subcultures. thus determining the new recruit’s organizational commitment. 6 1 . the more important its effect because it influences how later experiences will be interpreted. but the organization will have to adapt to the attitudes. It is during this time when the most important components of the psychological contract will be negotiated.S. such as the United States. Corporate practices are not easily transferred to other countries.

tests. little. People Do Change Organizations Socialisation is a two-way process. The manager adapts to the new employee. Frequently both the individual and the organization have some influence in the selection process. behavior. they may behave much like the newcomer. And they continually modify their behaviour as the infant passes through various stages of childhood. expectations.Getting Human Resources The Organization Sizing up the Individual We have emphasised the importance of the initial socialisation process in establishing the individual’s values. They. and selects from a number of candidates. for example. too. peers. The young teacher is more likely to be changed than the veteran.) faced with different types of human inputs into the organization will themselves have anxieties and apprehensions about the process. In some situations. however there is a potential opportunity for selection and matching on the part of both the individual and the organization to increase the probability of more effective socialisation and integration. The teacher makes certain attitudinal and behavior adjustments for each new class. Quite often these perceptions are based on limited information. etc. but they are enduring and difficult to change. In most cases. teachers. The first day and the first few months really do count in the individual’s organization career. Initial impressions (which may be based in limited evidence) are long lasting. behavior patterns. They are facing a new social situation and to an extent are unfrozen from their past attitudes and behavior patterns. However. The corporation recruits. Examples of the introduction of women and minorities into higher position in work organizations illustrate that the established managers also undergo major readjustments. Matching of Individual and Organization In view of the large variations in individual personality characteristics and almost equally wide different in organizational climates. and achievement orientation. mangers. All agents of socialisation are therefore themselves subject to change as a result of this process. The first women in the military academies were not only called upon to change themselves but occasioned substantial change that affected other recruits and the entire organization. it is understandable that there are many problems in appropriately matching and integrating the individual and the organization. The individual investigation has the most say in the matching process. even the long-established organization member may face a period of significant re-socialisation when presented with new circumstances. the organization has the most say in the matching process. Agents of socialisation (parents. and performance of the new individual. interviews. are more receptive at this time to information inputs and cues about how they should perform their role as socialiser. Just as in Hollywood. there is a danger that the individual may become type-cast and it is often difficult to break out of this role in the future. 6 2 . The degree of change effected in organization and in their agents of socialisation is directly related to the novelty to the situation with which they are presented. It is during this period that other members of the organization are making key judgment about the personal characters. The first child is much more likely to change the parents than the tenth. the individual. the individual investigates and evaluates various job opportunities. It is fairly obvious to new parents. The other side of the coin is also apparent. that their lives have been changed significantly when they bring the first baby home from the hospital. The new instructor will often be judged by faculty colleagues as to classroom effectiveness early in her career.

For example. Socialisation. We should not expect the process to be easy. and for many professional (Van Maanen. Unrealistic expectations may also be created in many industrial jobs. While the organization is attempting to modify the individual to its requirements. the individual should obtain as much information as possible about the organizational climate and its effect on the definition or roles. This appears to be true for college graduates entering management training programs. However the department failed to specify clearly all of the expectations for teaching and research of a new assistant professor. This is not always easy to obtain (it is even more difficult to get information from those who were dissatisfied and left). such as salary and fringe benefits. when the trainees were assigned to the gritty realities of the shoproom floor. “he in turn is striving to influence the organization so that it can better satisfy this own needs and his own ideas about how it can best be operated” (Porter. in their zeal to attract best new members. Even more critical. First. The graduate business school that prepares its MBA graduates to fill high managerial positions later in their career may install expectations that cannot be met until the individual has earned this position by performing basic tasks. But it is important to investigate longer-range career opportunities as well as immediate rewards.Individualization is the reciprocal of socialisation. many became disillusioned and quit. The learning environment was ideal. There seems to be a downward adjustment of expectations and aspirations on the part of new members in the organization during their first year. During the selection process. 1975). for police trainees. The professor also put his best foot forward. when a university department hired its first black assistant professor it painted a rosy picture of academic life. 1975). it did not fully recognize the potential role conflicts that the new professor would face. 6 3 . one large organization established a magnificent training facility for workers just joining the organization. A more objective appraisal may come from those who have recently joined the organization. there is strong evidence that anticipatory socialisation leads to higher expectations on the part of individuals about their organizational roles than can be fulfilled. are not always the best source for this kind of information. the instructors. 1979). & Hackman. For example. and behaviour patterns that may have been part of the self-image cultivated by the individual. This individualization process is of vital importance to the long-term survival of organizations: particularly those facing rapidly changing environments and internal circumstances. With the opening of new positions to women and minorities we see many examples of unrealistic expectations on the part of both the individual and the organization. This may be caused by many factors. Recruiters. Every adult re-socialisation process requires the abandonment of certain past values. capable and the training program highly effective. Mobility and Separation 7. Lawler. Unfortunately.8 IMPROVING THE SOCIALISATION PROCESS There seem to be some broad generalisation coming out studies of organizational socialisation process (Van Maanen & Schein. High initial expectations leading to some disillusionment is the typical pattern. attitudes. The Individual Perspective—Realistic Career Planning The individual should be realistic in recognizing that entering any organizations entering any organization entails some personal gains and some loses. It is one of the primary sources of organizational change and adaptation.

Purposes of Mobility Mobility serve the following purposes: a) b) c) 6 4 To improve organizational effectiveness. or overdone (Schein. The socialisation process requires significant adaptations on the part of both and results in the negotiation of a psychological contract. Organizational socialisation can be underdone. 1980. The recruiters fear that this might put of the better candidates have proven unjustified. Mobility in an organizational context includes mainly ‘promotion’ and ‘transfer’. change. The importance of these processes is becoming more evident in term of both organizational performance and human satisfaction.9 CONCEPT OF MOBILITY Mobility is an organizational activity to cope with the changing organizational requirements like change in organizational structure. values. It starts with the past life experiences of the individual and the past experiences and practces of the organization. and practices. The rebellious individual is dissatisfied with both himself and the organization: where the individual totally conforms to the organization. and expectations into the process.Getting Human Resources Organizational Perspective—Initial Socialisation Certainly. To maximise employee efficiency. more balanced recruitment and selection techniques can ease the socialisation process. and norms of the organization but also retains the desire to seek changes and improvement. fluctuation in requirement of organizational product. ‘demotion’ also comes under mobility. Some organizations have attempted to provide the prospective employee with more realistic job previews in the form of booklets. 1976). films. Wanous. appropriately done. both by researches and practicing managers (Van Maanen. d) . and informal discussion that convey not only the positive side of organizational life. introduction of new method of work etc. to the work site. and research indicates that turnover and dissatisfaction are significantly lower for people who have received realistic information and expectations. Figure 4 provides a summary diagram of the organizational socialisation process. appropriately done. The diagram suggests that both the individual and the organization bring a number of requirements. 1976. these have a major influence on the process. The outcome of the process may lead to two failuresalienation/rebellion or ultraconformity. Sometimes. The goal of appropriate socialisation should develop creative individualism where the person generally accepts the key goals. Neither of these is desirable from either the individual’s or the organization’s standpoint. Creative individualism is the desired mean: the achievement of which has great importance for the career development of the individual and for the continued growth. Feldman. visits. 1968). constraints. unquestioningly perpetuating and demanding acceptance of existing goals. To cope with changes in operation. but some of the potential problems and frustrations as well (Hall & Hall. there is growing attention to organizational socialisation process. 1978). If it is underdone. 7. Fortunately. values. rebellion and alienation on the part of the individual who rejects all the norms and values of the organization. and To ensure discipline. and development of the organization. Clearly.

behaviour patterns. Mobility and Separation 6 5 .Past life experience Self-concept values. attitudes. and expectations Rebellion (Counter dependency) Needs and abilities Expectations about organizations Search and selection Creative individuals in (Interdependency) Outcomes Organization system Past experiences and practice Task and other requirement Expectations about Individual Search and selection Technology Goals and values Socialisation Process Learning mutual expectations and making adjustments Ascribing and taking roles Negotiating the psychological contract Developing expectations about the effort-performance-rewards-satisfaction relationship Providing feedback on performance Developing new self-concepts Ultra conformity (dependency) Future individual career and organization development Managerial system Structure Psychological reasoning Figure 4: Diagram of the Organizational Process Socialisation.

minimises discontent and unrest.Getting Human Resources Promotion In simpler terms. The National Institute of Personnel Management (NIPM) has suggested a promotion policy on the following lines: 1) 6 6 Encouragement of promotion within the organization instead of looking outside to fill vacancies in higher places. promotion is given in lieu of increase in salary. We shall discuss each element in detail. “promotion is the transfer of an employee to a job which pays more money or one that carries some preffered status. Out promotion usually leads to termination of employee and joining some other organization in a better position. there is no increase in salary. b) identification of promotion channels. According to Yoder. Hence. Promotion may be temporary or permanent depending upon the organizational requirement. promotion refers to upward movement in present job leading to greater responsibilities. and d) centralised records. and attract suitable and competent employees. an employee either earns a promotion or seeks employment elsewhere. reduce discontent and unrest. Dry Promotion: In this type. Up or Out Promotion: In this case. A carefully planned promotion programme has four elements: a) formulation of promotion policy. For example. . develop competitive spirit among employees for acquiring knowledge and skills for higher level jobs. According to Clothier and Spriegel. a) Formulation of Promotion Policy: Each organization needs to maintain a balance between the internal sources of personnel promotion and external sources by means of recruitment. It provides multi-promotional opportunities through clearly defined avenues of approach to and exit from each position in the organization. enterprise and ambition. attracts capable individuals. Types of Promotions Different types of promotions are discussed below. “promotion provides incentive to initiative. higher status and better salary. b) c) Promotion Programme and Procedure Every organization should make advance plans for promotion programme. fair and clear cut policy. a) Multiple Chain Promotion: It provides a systematic linkage of each position to several others. long service etc.” Purpose and Advantages of Promotion Promotion stimulates self-development and creates interest in the job. utilise more effectively the knowledge and skills of employees. c) promotion appraisal. retain skilled and talented employees. necessitates logical training for advancement and forms an effective reward for loyalty and cooperation. promotion must be based on consistent. when an university professor is made Head of the Department.” The purposes and advantages of promotions are to: a) b) c) d) e) f) recognize employee’s performance and commitment and motivate him towards better performance.

job performance. such chart is quite easy to prepare. Drawing up an organization chart to make clear to all the ladder of promotion. after the personnel department has been asked to check from its knowledge whether any repercussion is likely to result from the proposed promotion. Merit as a basis: Merit implies the knowledge. seniority is used to choose from the eligible candidates. relative weightage may be assigned to seniority and merit and employees with a minimum performance record and qualifications are treated eligible for promotion. Socialisation. Mobility and Separation 3) 4) 5) b) Promotion Channels: Promotion channels should be identified and recorded on paper. abilities and evaluation of all employees should be recorded and maintained in a centralised manner by the department of the organization. he draws the pay of the higher post. skills and performance record of an employee. leadership. merit indicates past achievement. Normally. This process is related with job analysis and career planning of an organization. It has also certain disadvantages: beyond a certain age a person may not learn. Where there is a job analysis and a planned wage policy. physical fitness. experience. It also suffers from certain disadvantages like: difficulty in judging merit. performance and potential of an employee is not recognized. therefore. Making the promotion system clear to all concerned who may initiate and handle cases of promotion. and length of service are some of the factors considered in making promotions. Seniority-cum-Merit as basis: As both seniority and merit as basis suffer from certain limitations. because basing on these attributes. experience. the final approval must lie with the top management. a sound promotion policy should be based on a combination of both seniority and merit. The advantages of this are: relatively easy to measure. A proper balance between the two can be maintained by different ways: minimum length of service may be prescribed. but it should be clearly understood that if “he does not make the grade” he will be reverted to his former post and former pay scale. c) d) Bases of Promotion Promotion is given on the basis of seniority or merit or a combination of both. 6 7 . simple to understand and operate.2) An understanding that ability as well as seniority will be taken into account in making promotions. helps to maintain efficiency by recognizing talent and performance. may not denote future potential and old employees feel insecure. Centralised Records: The education. All promotions should be for a trial period to ascertain whether the promoted person is found capable of handling the job or not. The advantages are: motivates competent employees to work hard. Ability. during this trial period. Though departmental heads may initiate promotion. efficiency. Promotion Appraisals: The promotion of an employee is entirely dependent upon his/her performance appraisal outcome. skills. it kills ambition and zeal to improve performance. promotion is given to an employee. attitude. reduces labout turnover and provides sense of satisfaction to senior employees. Seniority as a basis: It implies relative length of service in the same organization. Let us discuss each one as a basis of promotion.

........................................................................................................................................................ b) Make a comparison of the above mentioned three... iii) There should be a competent investigation of any alleged violation.. Promotion Practice in India In India..................... insubordination where the individuals are demoted............... Demotion Demotion refers to the lowering down of the status.............................................................................. .................................................................................................................... .............................. ... violations of which would subject an employee to demotion...................................................... Causes of Demotion Demotion may be caused by any of these factors: a) b) c) d) Adverse business conditions: Employees may be demoted because of recession faced by company....................................... 6 8 iv) If violations are discovered....... preferably by the immediate supervisor.... Disciplinary measure.................................... a Public Sector Undertaking and Private organization with which you are familiar............... Incompetency of the employee: It happens when an employee finds it difficult to meet the required standard......... i) ii) A clear and reasonable list of rules should be framed...................... The habitual patterns of behaviour such as violation of the rules and conduct.... Demotion is used as a disciplinary measure in an organization............................................................... In public sectors.......................... .. poor attendance record....... Beach (1975) defines demotion as “the assignment of an individual to a job of lower rank and pay usually involving lower level of difficulty and responsibility”.... In private sectors......... both seniority and seniority-cum-merit promotion system is carried based on their policy........................ Yoder................................ there should be a consistent and equitable application of the penalty..................... . Turnbull and Stone (1958) have suggested a five fold policy with regard to demotion practice........... This information should be clearly communicated to employees....................................................... salary and responsibilites of an employee. .............................................. ...... ........................... Heneman............ Technological changes: When employee is unable to adjust with any technological change made by the company... the policy by and large is ‘promote the best man available’............................Getting Human Resources a) Note down the promotion policy of a Government organization.. ....................................................................................... seniority is generally used for promotion in Government offices..................

.................. ..... status and responsibility are the same. b) c) d) 6 9 .................................................. ................ the wrongly placed employee is transferred to a more suitable job.. The surplus employees in one department/section who are efficient might be absorbed in other place where there is a requirement....... ...... department............................................................................................ It also can be temporary or permanent................................. Socialisation..................... As a follow up............. It also helps to reduce boredom and monotony... (In a unionised case............................ ... Replacement transfers: This takes place to replace a new employee who has been in the organization for a long time and thereby giving some relief to an old employee from the heavy pressure of work........................... Transfers are generally affected to build up a more satisfactory work team and to achieve the following purposes.v) There should be a provision for review. Yoder and others (1958) define transfer as “a lateral shift causing movement of individuals from one position to another usually without involving marked change in duties................................................................................... Transfer may be initiated either by the company or the employee.... the employer will need to make other provisions for review).............. It is made to develop all round employees by moving them from one job to another................ responsibilities............ shift......................................... Mobility and Separation Activity B Take on account of the demotion policy of your organization and give a brief note on that.. Transfer A transfer is a horizontal or lateral movement of an employee from one job............................... plant or position to another at the same or another place where his salary..... Versality transfers: It is also know as rotation..... Personnel or remedial transfers: Such a transfer is made to rectify mistakes in selection and placement......................... i) ii) iii) iv) v) vi) vii) viii) To increase the effectiveness of the organization To increase versatility and competence of key positions To deal with fluctuations in work requirements To correct incompatibilties in employee relations To correct erroneous placement To relieve monotony To adjust workforce To punish employees Types of Transfers Employee transfers may be classified as below........ skills needed or compensation”........................................... Such transfers help to stabilise employment...................... in a non-unionised case.................... a) Production transfers: Such transfers are made to meet the company requirements...................... this will be automatic via the grievance procedure............................. section..........

....... However............... dismissal........................................ Care should be taken to ensure that frequent or large-scale transfers are avoided by laying down adequate selection and placement procedures for the purpose......e.. 7...... vi) Intimate the fact of transfer to the person concerned well in advance....................................................................... HR department conduct ‘Exit Interview’ with the employee who is leaving the organization. i..... ........ a) Resignation Resignation or quit is a voluntary separation initiated by the employee. .................. divisions/plants.................... . It may occur due to resignation......... Activity C Present a brief not on the transfer policy of your organization along with citing the total number of transfer cases of last few years.................... vii) Be in writing and duly communicated to all concerned..... marriage................... Hence.... retirement.............. to find out the real causes of resignation so that appropriate actions may be taken to prevent avoidable resignations. layoff or death.. A good transfer policy should: i) ii) Specifically clarify the types of transfers and the conditions under which these will be made.................... Transfer Policy Every organization should have a fair and impartial transfer policy which should be known to each employee.... Locate the authority in some officer who may initiate and implement transfers......................... better opportunities elsewhere or may be compulsory when an employee is asked to resign to avoid termination.. suspension...................... Some resignations may enable the organization to rectify mistakes in hiring of employees and to bring in fresh talent from outside...................... iv) Indicate the basis for transfer...................................................................................................... .... v) Decide the rate of pay to be given to the transferee........................... It may be on grounds of health............................ iii) Indicate whether transfers can be made only within a sub-unit or also between departments...................................... The responsibility for effecting transfers is usually entrusted to an executive with power to prescribe the conditions under which requests for transfers are approved............ viii) Not be made frequently and not for the sake of transfer only..................................Getting Human Resources e) Shift transfers: This is pretty common where there is more than one shift and when there is regularised rotation... excess turnover is costly for the organization.......10 SEPARATIONS Separation means cessation of service with the organization for one or other reason..................................................... whether it will be based on seniority or on skill and competence or any other factor............. The main requirements of a successful exit interview are as following: i) 7 0 Win the employee’s confidence by assuring him that whatever he says will be kept strictly confidential...... ............................

i) ii) The employee must be given one month’s notice in writing indicating the reasons for retrenchment or wages in lieu of such notice. family problem. Premature Retirement: An employee may retire before attaining the specified age due to bad health. v) Try to find out the real cause of resignation and ensure that the employee has fully handed over the charge to somebody else. This type of retirement is called Golden Hand Shake.ii) Explain to the employee that the purpose of the interview is to improve the organization’s climate. The principle of natural justice is followed for this. The Industrial Disputes Act. For reasons of discipline. Before dismissal. In Government office the retirement age is 58 years whereas in the private sector the age is generally 60 years. iv) The interview should show a great deal of patience and listen sympathetically. 7 1 . Retirement is of three kinds: i) Compulsory Retirement: An employee must retire after attaining the specified age. It is a drastic step taken by employer. e) Retrenchment Retrenchment means permanent termination of service of an employee for economic reasons in a going concern. It is the main cause of separation of employees from the organization. etc. vi) Assure the employee of the company’s continuing interest in his welfare. b) Retirement Retirement is a significant milestone in the life of an employee. or continued ill-health or the closure and winding up of a business”. the employee receives a subsistence allowance. Mobility and Separation iii) The interview should be conducted by a responsible officer from the personnel department. d) Suspension Suspension is a serious punishment and is generally awarded only after a proper enquiry has been conducted. The employee must be paid compensation equal to 15 days for every completed year of service. it may give an option to its employees with a certain minimum service for voluntary retirement in return for a lumpsum payment. physical disability. a workman may be suspended without prejudice during the course of an enquiry. ii) iii) Voluntary Retirement: When an organization wants to cut down its operations or to close forever. Socialisation. During suspension. 1947 defines retrenchment as the “termination by the employer of the services of workman for any reason other than termination of services as punishment given by way of disciplinary action. or retirement either voluntary or reaching age of superannuation. c) Dismissal Dismissal is the termination of services of an employee by way of punishment for misconduct or unsatisfactory performance. an employee is given an opportunity to explain his conduct and to show cause why he should not be dismissed. He gets the full benefit of retirement provided the management allows premature retirement. The Act lays down the following conditions for retrenchment.

According to Section 25(c) of the Industrial Disputes Act. 1947. It may last for an indefinite period. in order to claim this compensation. 7 2 . In mines workers are laid off due to excess of inflammable gas. suspension. f) Layoff Layoff implies temporary removal of an employee from the payroll of the organization due to circumstances beyond the control of the employer. power or raw materials or accumulation of stocks or breakdown of machinery or by any other reason. transfer and demotion. refusal or inability of an employer. An industrial establishment of a seasonal character or in which work is performed only intermittently or which employs less than 20 workers is not required to pay the compensation. Mobility takes place in different forms like promotion. the worker employed last must be terminated first. layoff is defined as “the failure. flood. No compensation is payable when the layoff in due to strike or slowing down of production on the part of workers in another part of the establishment. fire and explosion. The employer employee relationship does not come to an end but is merely suspended during the period of layoff. on account of shortage of coal. However. We have touched upon the individual role and job concept of socialisation. and he must present himself for work at the appointed time during normal working hours at least once a day. Separation means cessation of service for organisational or personal or some other reason. 7. retirement. iv) In the absence of any agreement to the contrary. The purpose of layoff is to reduce the financial burden on the organization when the human resources cannot be utilized profitabily.Getting Human Resources iii) Notice in the prescribed manner must be served on the appropriate Government authority. in this unit we have discussed three important functions of an organisation: Socialisation. Mobility is the transfer of employees to cope up with changing organisational requirements. But the employee is not terminated and is expected to be called back in future. v) Retrenched workers must be given preference in future employment. Mobility and Separation. 1947. to give employment to a workman whose name appears on the muster rolls of his industrial establishment and who has not been retrenched”. lay off or death. a laidoff worker is entitled to compensation equal to 50 per cent of the basic wages and dearness allowance that would have been payable to him had he not been laidoff. he must have completed not less than one year of continuous service.11 SUMMARY To sum up. his name must appear on the muster rolls of the industrial establishment. Under Section 2(KKK) of the Industrial Disputes Act. the laidoff workman must satisfy the following conditions: a) b) c) d) he should not be a badli or a casual worker. The right to compensation is lost if the worker refuses to accept alternative employment at a place within 5 miles of the establishment from which he has been laid off. dismissal. Layoff is restored in cyclical and seasonal industries. It may occur due to resignation. It is temporary denial of employment.

L. Greenberg. W. J. Brockner. 7 3 .. self-esteem. Journal of Applied Psychology. 340-342. affective. Define distributive justice and its relation to lay off. Edgar H. New Haven. McMillan Publishing Co. J. Tata McGraw Hill. New York: Academic Press. Social Justice Research. Grover. S. Survivors reactions. Personnel: The Management of People at Work.. 526-541. CT: Yale University Press. What is your primary motivation pattern? Discuss the statement: A manager cannot satisfy a worker only as an “employee” because each worker has many work roles. D. 36. (1987). J.S.. Using diaries to promote procedural justice in performance appraisals. De Witt. Practices and Point of View.J. 389-435). S. (1982). Nord. 1. New York.13 FURTHER READINGS Adams.L. Cohen (Eds).. Danier C. J. Beach. Mass. D. 267-299). 219-234. Feldman. (1985). Inequity in Social Exchange. 229-224. In L. Greenberg. Mobility and Separation 7. 1968. Bies.7.). Organizational Behaviour and Human Decision Process. Walter R.. and survivor guilt: Motivational. Administrative Science Quarterly.” In Concepts and Controversy in Organizational Behaviour. Equity and justice in social behaviour (pp. Cambridge. California: Goodyear. Clothier. (1977). Socialisation. Levinson. “Organizational Socialisation and the Profession of Management. We get by with a little help for our friends.S. “Culture and Organization Behaviour. Santa Monica. M.12 SELF ASSESSMENT QUESTIONS 1) 2) 3) 4) 5) 6) What does one gain by perceiving organizations as social systems? Discuss how motivation patterns. pp. Interactional fairness judgments: The influence of casual accounts. Reed. Berkowitz (Ed. 1. The Exceptional Executive: A Psychological Conception.. Layoffs. J. 197-221. Personnel Management in India. J. (1979). 2nd ed. NIPM. 1976. Compare the ideas of system equilibrium and employee adjustment. R. Distributive justice: A social-psychological perspective. & Carter. (1987a). New Delhi. In J. Determinants of perceived fairness of performance evaluations. Schien. M. J. role.” Industrial Management Review 9/2 (Winter 1968): 1-16. & O’Malley. Davy. pp. Greenberg. T.” Organizational Dynamics 5/2 (Autumn 1976): 64:80. 199-218. 32. (1965). From your experience cite examples of poor status congruence. and status have influenced your interactions with others today. Greenberg & R. (1986a). Advances in Experimental Social Psychology (Vol.. pp. and Spriegel. C. (1987). (1985). & Shapiro. 71. Personnel Management: Principles.W. Harry. Brockner. Approaching equity and avoiding inequity in groups and organizations. and attitudinal consequences. R. Deutsch. 2. Social Justice Research. to layoffs.: Harvard University Press. 212-13. “A Practical Program for Employee Socialisation.

209-264. Organizational Entry: Recruitment. Human Resource Management. and Stone. Research in Organizational Behaviour. Himalaya Publishing House. Sarma. Reading Mass. C. Selection and Socialisation of New Comers.Getting Human Resources Van Maanen. H. Greenwich. pp..G. Yoder. Heneman.B. Dale (1977). Personnel and Human Resource Management.). “Toward a Theory of Organizational Socialisation.G. (1958). Sultan Chand. Personnel Management and Industrial Relations.. Wanous. Mamoria. Prentice Hall of India.: Addison-Wesley. H. John P. & S. Gupta. C. John and Edgar H. New Delhi.. McGraw Hill. Staw (ed. 2004. Handbook of Personnel Management and Labour Relations.” In Barry M. New York. Gankar. 1979. Schein. D. Personnel Management.V. 7 4 ..M. A. Conn: JAI Press.H.B. Yoder. 1998. Himalaya Publishing House. New Delhi. 1997. 1979. Turnbull. C.

attitudes. behaviour patterns. and expectations Rebellion (Counter dependency) Needs and abilities Expectations about organizations Search and selection Creative individuals in (Interdependency) Organization system Past experiences and practice Technology Goals and values Task and other requirement Managerial system Structure Psychological reasoning Expectations about Individual Search and selection Socialisation Process Learning mutual expectations and making adjustments Ascribing and taking roles Negotiating the psychological contract Developing expectations about the effort-performance-rewardssatisfaction relationship Providing feedback on performance Developing new self-concepts Outcomes Ultra conformity (dependency) Future individual career and organization development .Past life experience Self-concept values.

Each skill has its own set of “learning outcomes”. which are closely related to each other. duties and responsibilities of a job and job specification is a broad statement which specifies about the job holder. experience..8 Self Assessment Questions 8. The present unit discusses the competency approach to job analysis and the concept of competency mapping.6 Methods of Competency Mapping 8.1 INTRODUCTION Job analysis refers to the process of examining a job to identify its component parts and circumstances in which it is performed. These competency skills are grouped according to a major function of the occupation.3 Uses of Competency Approach in an Organisation 8. Job description is a broad statement of the purpose. describe the meaning of competency mapping and various methods involved in it. experience required etc. i.2 COMPETENCY APPROACH TO JOB ANALYSIS A skill is a task or activity required for competency on the job. which must be mastered before a competency in the particular skill is acknowledged. 8. Job analysis consists of two functions such as Job Description and Job Specification. l Structure 8. attitude. The critical concern for you as a job analyst should be to treat jobs as units of organisation. Performance assessment criteria clearly define the acceptable level of competency for each skill required to perform the job.7 Summary 8. explain the competency approach to job analysis.2 Competency Approach to Job Analysis 8.UNIT 8 COMPETENCY MAPPING Objectives After completion of the unit.4 Benefits of the Competency Approach 8. and appreciate the benefits of competency mapping. It acts as a tool which provides the information base for a wide range of organisational and managerial functions.e. you should be able to: l l l Competency Mapping understand the concept of job analysis. The individual’s level of competency in each skill is measured against a performance standard established by the organization.5 Competency Mapping 8.9 Further Readings 8. and feedback. his/her qualification.1 Introduction 8. Competency in a skill requires knowledge. and are presented in a twodimensional chart. 5 .

Performance Management and Potential Assessment The competency based job analysis involves the following steps: a) b) c) d) e) Identification of major job functions. Employees know up front what is expected of them. and Identification of performance standards for each skill using a competency-based rating scale which describes various levels of performance. Development of an occupational analysis chart. and The approach builds trust between employees and managers f) .While some competency studies take months to complete and result in vague statements that have little relevance to people in the organization but if done well they provide the following benefits to the organizations: a) b) c) d) e) 6 Increased productivity. and scalable tool has been used for the following benefits to the organization: a) b) c) d) e) f) g) h) i) j) k) l) n) o) provides a systematic approach to planning training customizes training delivery to the individual or organization evaluates suitability of training programs to promote job competence provides employees with a detailed job description develops job advertisements helps in personnel selection assists in performance appraisals targets training to skills that require development gives credit for prior knowledge and experience focuses on performance improvement promotes ongoing employee performance development identifies employee readiness for promotion develops modular training curriculum that can be clustered as needed develops learning programmes m) guides career development of employees 8. 8.3 USES OF COMPETENCY APPROACH IN AN ORGANISATION Competency approach is a foundation upon which to build a variety of human resource development initiatives. This adaptable. Identification of skills performed within each of the major job functions. Improved work performance. flexible. Employees are empowered to become partners in their own performance development. Generation of several drafts to be reviewed by employers and employees and modified to accurately reflect the skills performed on the job. The chart is a two-dimensional spreadsheet chart displaying the major job functions and skills. Training that is focused on organizational objectives.4 BENEFITS OF THE COMPETENCY APPROACH There are different approaches to competency analysis.

............................... The competencies of the respective job description become factors for assessment on the performance evaluation...................................................................................... Taking the competency mapping one step further..... leadership) rather than a skill or ability.............. .................e..... Competency Mapping is a process to identify key competencies for an organization and/or a job and incorporating those competencies throughout the various processes (i..........................5 COMPETENCY MAPPING Competency approach to job depends on competency mapping.................................. .............................................................................................................. The job analysis is a catalyst to meaningful discussion of job performance because the employer and employee have a common understanding of expectations............. This can be provided for incumbents to complete................. The primary goal is to gather from incumbents what they feel are the key behaviors necessary to perform their respective jobs............... Using competencies will help to perform more objective evaluations based on displayed or not displayed behaviors....................................................................... job evaluation... ................................... mapping the competencies can be done..................... This will help in focusing on training needs required to achieve the goals of the position and company and help the employees develop toward the ultimate success of the organization................................................ Using the results of the job analysis.... ............................. . ........... The steps involved in competency mapping are presented below: a) Conduct a job analysis by asking incumbents to complete a position information questionnaire(PIQ)............................................... This is due to the explicit nature of the competency statements pertaining to the job.. ............ A competency is defined as a behavior (i.... b) c) d) Activity A Prepare a Position Information Questionnaire for two jobs you are familiar with and derive the outcome..... a competency based job description is developed....................................................... recruitment) of the organization... It is developed after carefully analyzing the input from the represented group of incumbents and converting it to standard competencies............... With a competency based job description.....................................................................e...................... Competency Mapping 8................. 7 ................ communication.................... The growth plan requires input from the employer and the employee for its development and follow-up..... The fact that the employee conducts a self-appraisal of performance and the employer must confirm this assessment requires a counseling type of interaction to take place..................................... training...... or used as a basis for conducting one-on-one interviews using the PIQ as a guide.............................................. one can use the results of one’s evaluation to identify in what competencies individuals need additional development or training..............................................One of the strong points of this approach is that it requires interaction between the employer and the employee...... ...........................

is probably one of the fairest and most objective means of gathering information upon which a selection decision can be based. to identify and reinforce and/or develop these competencies both for the growth of the individual and the growth of the organization. elements related to the job are simulated through a variety of tests. Multiple assessors must be used for each assessed. Data thus generated can become extremely useful in identifying employees with potential for growth. It is. some major approaches of competency mapping have been presented. However. Since it is with reference to a job. essential for a process to be considered as assessment center: a) b) c) d) e) f) g) h) i) j) A job analysis of relevant behavior to determine attributes skills. In the following section. if correctly structured. Techniques used must be validated to assess the dimensions of skills and abilities. The assessors observe the behavior and make independent evaluation of what they have observed. however. It was initiated by American Telephone and Telegraph Company in 1960 for line personnel being considered for promotion to supervisory positions. Behavioral observations by assessors must be classified into some meaningful and relevant categories of attributes. worth remembering that there is a large body of academic research which suggests that the assessment centre is probably one of the most valid predictors of performance in a job and. Assessment techniques must include job related simulations. Following are some of the benefits of the assessment center: a) b) 8 It helps in identifying early the supervisory/ managerial potential and gives sufficient lead time for training before the person occupies the new position. c) . Systematic procedures should be used to record observations. An essential feature of the assessment center is the use of situational test to observe specific job behavior. The International Personnel Management Association (IPMA) has identified the following elements. a number of methods and approaches have been developed and successfully tried out. for effective job performance and what should be evaluated by assessment center. It is a procedure (not location) that uses a variety of techniques to evaluate employees for manpower purpose and decisions. which results in identifying strengths and weaknesses of the attributes being studied. Assessors who are generally senior managers in the organization find the training for assessor as a relevant experience to know their organization a little better. It helps in identifying the training and development needs. Assessors must be thoroughly trained. Assessors must prepare a report. Multiple assessment techniques must be used. These methods have helped managers to a large extent. skills and abilities. remembering always that you can only be assessed on what you have done and what the assessors can observe.Performance Management and Potential Assessment 8. etc.6 METHODS OF COMPETENCY MAPPING It is not easy to identify all the competencies required to fulfill the job requirements. All information thus generated must be integrated either by discussion or application of statistical techniques. 1) Assessment Centre “Assessment Centre” is a mechanism to identify the potential for growth. etc. From the candidate’s perspective it is important to be natural and to be oneself when faced with an assessment centre.

Summariser: Provides a secretarial function. The main types of exercises are presented below. It should safeguard itself from misunderstandings and deviations in its implementation. values. 9 l l l l l l . discussions enable management to draw on the ideas and expertise of staff. In the work place. Group discussion allows them to exchange information and ideas and gives them the experience of working in a team. Assessment Centre comprises a number of exercises or simulations which have been designed to replicate the tasks and demands of the job. candidates are brought together as a committee or project team with one or a number of items to make a recommendation on. applications about points being made by others. and feelings. 1) Positive Task Roles: These roles help in reaching the goals more effectively: l Initiator: Recommends novel ideas about the problem at hand. Competency Mapping Assessment Centre is a complex process and requires investment in time. Following roles. and feelings. Opinion giver: Provides opinions. a) Group Discussions: In these. groups provide a supportive and nurturing environment for academic and professional endeavour. Ideas can be responded to by others. Most organizations use a combination of them to assess the strengths. These exercises or simulations will have been designed in such a way that candidates can undertake them both singly and together and they will be observed by assessors while they are doing the exercises. Information seeker: Emphasises “getting the facts” by calling for background information from others. and to acknowledge the staff as valued members of a team. Information giver: Provides data for forming decisions. One is not sure if the benefits outweigh the cost. Candidates may be assigned specific roles to play in the group or it may be structured in such a way that all the candidates have the same basic information.examples. rephrasing. or possible solutions not yet considered.d) The assessment center exercise provides an opportunity for the organization to review its HRM policies. and the dialogue that might accompany them in a group discussion have been identified. such as attitudes. Some advantages of group discussion are: l l l l l l l Ideas can be generated. Clarifier: Gives additional information. Ideas can be shared. values. weaknesses and potential of employees. including facts that derive from expertise. The assessors’ judgment may reflect the perception of reality and not the reality itself. For this. Opinion seeker: Asks for more qualitative types of data. the following concerns should be ensured: a) b) c) Assessment Centre for diagnosis is often converted as Assessment Centre for prediction of long range potential. new ways to approach the problem. Working in groups is fun! A useful strategy for developing an effective group discussion is to identify task and maintenance roles that members can take up. When the dynamics are right. Group discussion skills have many professional applications. Ideas can be ‘tried out’.

l l l During an effective group discussion each participant may take up a number of task and maintenance roles to keep the discussion moving productively. Harmonizer: Mediates conflicts among group members. and praise. which assumed a new position or replaced their predecessor at short notice and has been asked to deal with their accumulated correspondence. but are clearly marked on the items any thoughts that candidates have about them or any other actions that they would wish to undertake. Compromiser: Shifts her/his own position on an issue in order to reduce conflict in the group. The materials comprise a bundle of correspondence and the candidate is placed in the role of somebody. They should be avoided during group discussions. Dominator: someone who takes control of the discussion by talking too much. general brief on the objective of the meeting. consideration are also be given to preparatory notes. warmth . Gatekeeper: Smoothes communication by setting up procedures and ensuring equal participation from members. Although the assessment is made mainly on the conduct of the meeting itself. Candidates generally work independently on such an exercise and their recommendation or decision is usually to be communicated in the form of a brief written report and/or a c) d) 1 0 . Described below are some of the negative roles to be avoided: l Disgruntled non-participant: someone who does not contribute and whose presence inhibits the participation of other group members. or alternatively.Performance Management and Potential Assessment 2) Positive Maintenance Roles : These become particularly important as the discussion develops and opposing points of view begin to emerge: l l l Social Supporter: Rewards others through agreement. in some cases. candidates will be allowed 15 -30 minutes to prepare for such a meeting and will be given a short. l l l b) In Tray: This type of exercise is normally undertaken by candidates individually. or disrupts it with inappropriate humour. Energiser: Stimulates the group to continue working when the discussion flags. there are a number of negative roles which are often taken up in group discussion. Case Studies / Analysis Exercises: In this type of exercise the candidate is presented with the task of making a decision about a particular business case. It is important when undertaking such an exercise to make sure that the items are not just dealt with. Generally the only evidence that the assessors have to work with is the annotations which the candidates have made on the articles of mail. The discussion group may adopt the ground rule that negative role behaviour will be censured by members of the group. Interview Simulations/Role Plays: In these exercises candidates meet individually with a role player or resource person. refuses to take the discussion seriously. Attacker: someone who acts aggressively by expressing disapproval of other members and their contributions to the discussion. generally. interrupting other members. or behaving in a patronising way. contradictory. Typically. Their brief is either to gather information to form a view and make a decision. to engage in discussion with the resource person to come to a resolution on an aspect or issue of dispute. In addition. Clown: someone who ‘shows off’. if necessary. Tension Reliever: Informally points out the positive and negative aspects of the group’s dynamics and calls for change. They are provided with a large amount of factual information which is generally ambiguous and.

the greater the danger that the users may reply with imagined stereotypical responses. the employee concerned is also involved in discussions with his supervisor before the incidents are recorded. Users self report their own critical incidents after they have happened. Thus. A few judges are asked to rate how good and how bad is good and bad behaviour. The incidents are immediately noted down by the supervisor as he observes them. The objective of immediately recording the critical incidents is to improve the supervisor’s ability as an observer and also to reduce the common tendency to rely on recall and hence attendant distortions in the incidents. Despite numerous variations in procedures for gathering and analyzing critical incidents researchers and practitioners agree the critical incidents technique can be described as a set of procedures for systematically identifying behaviours that contribute to success or failure of individuals or organisations in specific situations. The next task is to train supervisors in taking notes on critical incidents or outstanding examples of success or failure of the subordinates in meeting the job requirements. Interviews 1 1 . The events should have happened fairly recently: the longer the time period between the events and their gathering. Following are the criteria for a successful use of critical incident technique: a) b) c) d) e) f) g) Data are centred around real critical incidents that occur during a task performance. Data are captured in normal task situations. if the brief requires a decision to be made. No direct interaction takes place between user and evaluator during the description of the incident(s). Users are located in their normal working environment. It is extremely useful to obtain detailed feedback on a design option. Competency Mapping Critical Incidents Technique is useful for obtaining in-depth data about a particular role or set of tasks. a list of good and bad on the job behaviour is prepared for each job. users are perhaps in the best position to recognise critical incidents caused by usability problems and design flaws in the user interface. It involves the following three steps: Step 1:Gathering facts: The methodology usually employed through an open-ended questionnaire. Very often. As with the other exercises it is important with this kind of exercise to ensure that their thought processes are clearly articulated and available for the scrutiny of the assessors. Of paramount importance. Quality data can be captured at low cost to the user. First of all. Based on these ratings a check-list of good and bad behaviour is prepared. respectively. Besides being objective a definite advantage of this technique is that it identifies areas where counseling may be useful. Perhaps one way to understand the concept would be to examine what it does.presentation made to the assessors. not contrived laboratory settings. Critical incident identification is arguably the single most important kind of information associated with task performance in usability -oriented context. 2) Critical Incidents Technique It is difficult to define critical incident except to say that it can contribute to the growth and decay of a system. In real world of task performance. Tasks are performed by real users. thus facilitating the employee to come out with his side of the story. a balance-sheet for each employee is generated which can be used at the end of the year to see how well the employee has performed. gathering retrospective data. particularly when an unfavourable incident is being recorded. ensure that a decision is made and articulated.

effective? What was the result( outcome)? Step 2: Content analysis: Second step consists of identifying the contents or themes represented by the clusters of incidents and conducting “retranslation” exercises during which the analyst or other respondents sort the incidents into content dimensions or categories. For example. and then each of the incidents is compiled into categories. Sometimes one finds that there is not one. but these must be handled with extreme care not to bias the user. quite similar and could be similar. using the number of responses per category.e. Step 3: Creating feedback: It is important to consider that both positive and negative feedback be provided. Some of the advantages of critical incident technique are presented below: a) Some of the human errors that are unconsciously committed can be traced and rectified by these methods. and with the barest minimum of training in critical incident identification. eyewitness or the pilot who made the error) Users with no background in software engineering or human computer interaction. Identify what aspect of the interface was responsible for the incident. These steps help to identify incidents that are judged to represent dimensions of the behaviour being considered. Category membership is marked as identical . It is therefore poor as a tool for routine task analysis.. 1) 2) 3) What lead up to the situation? What was done that was especially effective or non. Moderate structured approach: where the individual is asked to respond to following questions relating to what happened when he/she was carrying out an activity. This can be done using a simple spreadsheet. This continues until each item is assigned to a category on at least a “quite similar” basis. b) Some of the disadvantages of critical incidents method are presented below: a) b) c) 1 2 . but there is no reason to believe that all users have this ability naturally. report.Performance Management and Potential Assessment can also be used. not actual events. It focuses on critical incidents therefore routine incidents will not be reported. it is their conjunction together that makes it critical and it would be an error to focus on one salient aspect . Respondents may still reply with stereotypes. can identify. Every item is entered as a separate incident to start with. Success of the user reported critical incident method depends on the ability of typical end users to recognise and report critical incidents effectively. There are two kinds of approaches to gather information: 1) 2) Unstructured approach: where the individual is asked to write down two good things and two bad things that happened when one was carrying out an activity. Using more structure in the form improves this but not always. a case study on pilots obtained detailed factual information about pilot error experiences in reading and interpreting aircraft instruments from people not trained in the critical incident technique (i. The poor features should be arranged in order of frequency. and rate the severity level of their own critical incidents. but several aspects of an interaction that lead to a critical incident. At this point it is necessary to go back to the software and examine the circumstances that led up to each category of critical incident. This result is important because successful use of the reported critical incident method depends on the ability of typical users to recognise and report critical incidents effectively. These are in turn converted into percentages (of total number of responses) and a report is formulated.Each category is then given a name and the number of the responses in the category are counted. Same should be done with the good features.

complex question in the beginning can affect subsequent interaction. the critical areas in which questions will be asked must be identified for judging ability and skills. If the interview is not handled carefully. if he has strong views on the subject. putting the interviewee at ease. or seeking information related to the job. The interview consists of interaction between interviewer and applicant. The applicant is “on guard” and careful to present the best face possible. or answers to questions can also inhibit the candidate. Thus it is advisable for the pattern to follow the simple-to-complex sequence. He should be alert and check the interviewee if he tries to lead the discussion in areas where he feels extremely competent. it can be a powerful technique in achieving accurate information and getting access to material otherwise unavailable. Here again it is extremely important to lead up to complex questions gradually. incidents and experiences in the career of the candidate. define them with examples. The interviewee is over-sensitive to such reactions. The interviewer can get a better response if he creates a sense of ease and informality and hence uncover clues to the interviewee’s motivation. a few general guidelines. it can be a source of bias. There are. during the interview. attitudes. tact and sensitivity can be very useful.. during and after the interview. Once the interviewee is put at ease the interviewer starts asking questions. Showing surprise or disapproval of speech. This procedure will make interviews less removed from reality and the applicant will be more comfortable because the discussion will focus on his experiences. It is advisable to write down these critical areas. conveying the impression that the interview is a conversation between two friends. Enormous amounts of research have been conducted into interviews and numerous books have been written on the subject. Leading questions should be avoided because they give the impression that the interviewer is seeking certain kinds of answers. great care has to be taken before. The fundamental step is establishing “rapport”. journey and so on. which may answer questions raised around the critical areas. chatting casually about the weather. an effort to try and understand the interviewee’s point of view and orientation can go a long way in getting to know the applicant. The second step is to scrutinize the information provided to identify skills. the observation of which should aid the use of an interview for competency mapping. This may create a conflict in the interviewee. some practice and mock interviews will help calibrate variations in individual interviewers’ ratings. Therefore. temperament. If there is more than one interviewer. as part of competency mapping. If handled properly. Hence. however. Asking a difficult. Since the interview is one of the most commonly used personal contact methods. nervous and possibly frightened. Competency Mapping b) c) d) e) f) g) 1 3 . particularly if the interviewee is not able to answer the question. clothes. restricting or distorting the flow of communication. if it is likely to stray from relevant areas.3) Interview Techniques Almost every organisation uses an interview in some shape or form. and form a scale to rate responses. etc. feelings. Following steps are suggested: a) Before the actual interviews begins. At the same time he is tense. One way to achieve this is by initially asking questions not directly related to the job. Nor should the interviewer allow the interview to get out of hand. which are otherwise difficult to comprehend. An interview is a face-to-face situation. that is. and not a confrontation of employer and employee.

. interviewers made short notes on their impression of candidates’ behavior responses. Reasoning..................... In addition.............. depending on the questions that are asked in the questionnaire......... degree of internal and external contacts.............................. Most of them are of recent origin and are designed to identify those skills................... .................................................................. The background section asks 41 general questions about work requirements such as travel.................. seasonality................ 1 4 . and license requirements... and managerial and business decision making............... and Work Setting......... the interviewers should discuss the interviewee... machinery.. Contacts with People........ a) Common Metric Questionnaire (CMQ): They examine some of the competencies to work performance and have five sections: Background. and make a tentative decision about the candidate... b) Functional Job Analysis: The most recent version of Functional Job Analysis uses seven scales to describe what workers do in jobs................... identify areas of agreement and disagreement.. an evaluation of the day’s work.............Performance Management and Potential Assessment h) The interviewer should be prepared with precise questions................ Some of these techniques are briefly presented below: Activity B Assume that you are conducting interview for the post of “Marketing Executive” of a company..... This technique can be used at any stage of development............................ You begin by formulating questions about your product based on the type of information you want to know................ People............ a large number of methods have been developed to measure and map competencies.... Decision Making.... which can then be discussed later......... Data.............................. These are:Things..... content of questions and general pattern of response should be made for possible mid-course correction...................................... and meeting requirements............................ 4) Questionnaires Questionnaires are written lists of questions that users fill out questionnaire and return.. ... language and sensory requirements........ in addition to rating the applicant.... Maths................ Worker Instructions. and Language................... and not take too much time in framing them.. The 80 Decision Making items in the CMQ focus on relevant occupational knowledge and skill... Describe how you will perform this job by considering the guidelines provided in the above section.... The questionnaire sources below provide more information on designing effective questions.... attitudes and knowledge that are suited most for specific jobs..... The Physical and Mechanical Activities section contains 53 items about physical activities and equipment... ...... and tools..................... Work Setting contains 47 items that focus on environmental conditions and other job characteristics............................ Such questionnaires often identify usability issues that should have been caught in-house before the product was released to the market.... Physical and Mechanical Activities. The CMQ is a relatively new instrument......... ....... questionnaires are used after products are shipped to assess customer satisfaction with the product............... .. Often.................. If the interview is to continue for many days.. The Contacts with People section asks 62 questions targeting level of supervision......... Once this phase is over............................ It will be helpful if..

..................................... Mental processes (reasoning and other processes that workers use).................... This is mostly used for US government jobs.... service......... .... extent........ 1 5 ................................ .......................... Competency Mapping f) Work Profiling System(WPS): It is designed to help employers accomplish human resource functions.... and Work Context.......... ... applicability................................. Relationships with other persons............ the matching is done between competencies and work requirements. .............. .....” designed to yield more specific job information while still capturing work requirements for virtually all occupations..... and job description............... and Job context (the physical and social contexts of work). or a special scale designed for the element................................................ Work Goals...Each scale has several levels that are anchored with specific behavioral statements and illustrative tasks and are used to collect job information. and technical occupations................... It contains a structured questionaire which measures ability and personality attributes............ Respondents rate each job element on one of four rating scales: part-of-job................................................................... It consists of 195 job elements that represent in a comprehensive manner the domain of human behavior involved in work activities. Tasks are rated on importance and competencies are rated on several scales including importance and requirements for performing the task........................................................................ Work Behavior....... c) Multipurpose Occupational System Analysis Inventory (MOSAIC): In this method each job analysis inventory collects data from the office of personnel management system through a variety of descriptors. Activity C Prepare a questionnaire to analyse a particular job with which you are familiar with. ........................................... 5) Psychometric Tests Many organizations use some form of psychometric assessment as a part of their selection process.......................... Refer back to the types of questionnaires discussed in the section while structuring your questions............................................ Two major descriptors in each questionnaire are tasks and competencies................... Mental Activities.................... For some people this is a prospect about which there is a natural and understandable wariness of the unknown.... Work output (physical activities and tools used on the job)............... employee selection.... There are three versions of the WPS tied to types of occupations: managerial....................................... These items fall into following five categories: a) b) c) d) e) Information input (where and how the worker gets information)....................... d) Occupational Analysis Inventory: It contains 617 “work elements................. The major categories of items are five-fold: Information Received........ Afterwards ............................... The competency approach is designed to yield reports targeted toward various human resource functions such as individual development planning.................................. e) Position Analysis Questionnaire (PAQ): It is a structured job analysis instrument to measure job characteristics and relate them to human characteristics....

Saiyadain.New Delhi : Tata McGraw Hill. their training. Saiyadain.S. clinical aptitude and artistic aptitude etc.8 SELF ASSESSMENT QUESTIONS 1) 2) 3) Discuss the concept of “Competency Mapping”.Performance Management and Potential Assessment A psychometric test is a standardized objective measure of a sample of behavior. For all these to happen smoothly there is a requirement of competency approach to job analysis.9 FURTHER READINGS Flippo. which requires perfect job analysis. b) Achievement Tests: These tests measure the level of proficiency that a person has been able to achieve. arithmetic computation and reasoning etc. recruitment and selection of personnel. Job analysis is also useful to make decisions relating to organisational planning and design.(2003) Human Resources Management . 8. Write short notes on: a) Assessment Centre b) Psychometric Tests c) Interview Techniques 8. New Delhi: Sage Publications. They measure what a person has done. It is standardized because the procedure of administering the test.7 SUMMARY An effective manager is one who is able to assign jobs to the correct personnel. Hence they cover more concrete.(2003) Organisational Behaviour . It is objective because a good test measures the individual differences in an unbiased scientific method without the interference of human factors.(2004) The Handbook of Competency Mapping. A person’s score is calculated on the basis of correct answers. Most tests could be classified in two broad categories: a) Aptitude Tests: They refer to the potentiality that a person has to profit from training. Describe the roles that are necessary in group discussion citing suitable examples. appraisal and development and other managerial functions. E.New Delhi : Tata McGraw Hill. 8. New Delhi : Tata McGraw Hill. M. Most of these tests measure such things as language usage. It predicts how well a person would be able to perform after training and not what he has done in the past. M. and the method of calculating individual scores are uniformly applied. They are developed to identify individuals with special inclinations in given abilities.(1994) Principles of Personnel Management. Sanghi. 1 6 .S. the environment in which the test is taken.B. Most of these tests are time bound and have a correct answer. clearly defined or practical abilities like mechanical aptitude. S.

Introduction 9. That is where efficiency comes in.10 Effective Performance Appraisal 9. the greater the efficiency. It is not desirable to have objective measures of 1 7 .11 Summary 9. 9.5 9.3 9. First has to do with determining the performance and other with the process of evaluation.2 CONCEPT OF PERFORMANCE APPRAISAL a) What is Performance? What does the term performance actually mean? Employees are performing well when they are productive.9 Concept of Performance Appraisal Goals of Performance Appraisal Objectives of Performance Appraisal The Performance Appraisal Process Benefits of Performance Appraisal Performance Appraisal Methods Performance Counselling Problems in Performance Appraisal 9. Structure 9.8 9. discuss the benefits of appraisal. describe various appraisal methods. However it does not speak of the costs incurred in reaching the goal.1. and understand the problems in appraisal. explain the performance appraisal process. you should be able to: l l l l l Performance Planning and Review understand the concept of performance appraisal.12 Self Assessment Questions 9.1 INTRODUCTION Performance appraisal helps organizations to determine how employees can help to achieve the goals of organizations.4 9.13 Further Readings 9. concept of performance appraisal and the processes involved in it have been discussed.2 9.UNIT 9 PERFORMANCE PLANNING AND REVIEW Objectives After completion of the unit. effectiveness refers to goal accomplishment. It has two important activities included in it. Efficiency evaluates the ratio of inputs consumed to outputs achieved.7 9. Productivity implies both concern for effectiveness and efficiency.6 9. In this unit. The greater the output for a given input.

and have knowledge of the employee’s job and performance. transfer. one that is of interest to both the organization and the employee. Secondly. by not missing days. Supervisors need to enter performance appraisals with a constructive and helpful attitude. wage and salary administration etc. To make effective performance appraisals a reality. Appraisals are essential for making many administrative decisions: selection. 1 8 . In industry performance appraisal is a systematic evaluation of employees by supervisors. properly operating performance appraisal systems provide a clear communication of work expectations. Each employee’s work should support the activities needed to action his or her supervisor’s performance objectives. with all efforts supporting corporate strategic goals. These are: a) b) c) d) Employees should be actively involved in the evaluation and development process. properly designed performance appraisals should also serve as a means of assisting an employee’s personal development. number of units produced. and by minimizing the number of work-related accidents. b) What is Appraisal? Appraisals are judgments of the characteristics. turnover. From the employee perspective. training. sound performance appraisals can ensure that correct work is being done. four criteria need to be present. Realistic goals must be mutually set.3 GOALS OF PERFORMANCE APPRAISAL Conducting performance appraisals on employee’s performance should be more than a simple checklist of Do’s and Don’ts. performance also includes personnel data such as measures of accidents. and tardiness. That is a good employee is one who not only performs well in terms of productivity but also minimizes problems for the organisation by being to work on time.). This should ultimately continue up the hierarchy. Employees also wish to know their position in the organization. Knowing what is expected is a first step in helping one to cope better with the stress usually associated with a lack of clear direction. promotion. Supervisors must be aware. In addition to productivity as measured in terms of effectiveness and efficiency. Performance Appraisal thus is a systematic and objective way of judging the relative worth of ability of an employee in performing his task. 9. work that assists in meeting department goals simply put. absences. or percent of crimes solved etc and hard data on efficiency (average cost per unit or ratio of sales volume to number of calls made etc. traits and performance of others. Performance appraisal helps to identify those who are performing their assigned tasks well and those who are not and the reasons for such performance. On the basis of these judgments we assess the worth or value of others and identify what is good or bad. Performance evaluation should serve as a vital component. Besides they aid in personnel research. From the organizational perspective.Performance Management and Potential Assessment productivity such as hard data on effectiveness.

to communicate these expectations to their subordinates and appraise their performance against these previously established standards. it is necessary to communicate these expectations. To assess training needs.” Vague phrases tell us nothing. Even if the more positive objectives are built into the system. The problem is compounded when these standards are not communicated to the employees. We should be concerned with how we measure and what we measure.4 OBJECTIVES OF PERFORMANCE APPRAISAL Performance appraisal has a number of specific objectives.5 THE PERFORMANCE APPRAISAL PROCESS Following steps are involved in appraisal process: 1) The appraisal process begins with the establishment of performance standards. it is necessary to acquire information about it. To audit the skills within an organizations. For Example. 2) 3) 1 9 .9. The expectations a manager has in term of work performance by the subordinates must be clear enough in their minds so that the managers would be able to at some later date. Therefore feedback is necessary. These performance standards should also be clear and objective enough to be understood and measured. These should have evolved out of job analysis and the job description. Unfortunately. It is important to note that communication is a two-way street. Under such situations a well thought out performance appraisal is doomed to failure. new directions and opportunities. Mere transference of information from the manager to the subordinate regarding expectations is not communication. or which might be perceived as leading to disciplinary action. Hence the information communicated by the manager has been received and understood in the way it was intended. too many jobs have vague performance standards. It is therefore important that performance appraisal should have specific objective. Performance Planning and Review Some employees may believe that performance appraisal is simply used by the organization to apportion blame and to provide a basis for disciplinary action. To identify potential for promotion. The Third step in a appraisal process is measurement of performance. It should not be part of the employees’ job to guess what is expected of them. Communication only takes place when the transference of information has taken place and has been received and understood by subordinate. Not only should the objectives be clear but also they should form part of the organization’s whole strategy. Too often. These are given below: a) b) c) d) e) f) To review past performance. these standards are articulated in some such phrase as “a full day’s work” or “a good job. Once performance standards are established. an appraise is less likely to be open about any shortcomings in past performance during a process that affects pay or promotion prospects. 9. They see it as a stick that management has introduced with which to beat people. To set targets for future performance. To determine what actual performance is. problems may still arise because they may not all be achievable and they may cause conflict. Thus incorporating objectives into the appraisal system may highlight areas for improvement. To help develop individuals.

on their subsequent performance. conveying good news is considerably less difficult than conveying the bad news that performance has been below expectations.1: The Performance Appraisal Process 2 0 s s Comparison of Actual Performance in the Performance standards . The attempt in this step is to note deviations between standard performance and actual performance. The other is basic and delves into causes. Each has its strengths and weaknesses. Corrective action can be of two types. What we measure is probably more critical to the evaluation process than how we measure. One of the most challenging tasks facing managers is to present an accurate appraisal to the subordinate and then have the subordinate accept the appraisal in a constructive manner. managers may rationalize that they do not have the time to take basic corrective action and therefore must be content to “perpetually put out fires. The criteria we choose to measure must represent performance as stated in the first two steps of the appraisal process. The impression that subordinates receive about their assessment has a strong impact on their selfesteem and. however. 4) The fourth step in the appraisal process is the comparison of actual performance with standards. Thus. statistical reports. a combination of them increases both the number of input sources and the probability of receiving reliable information. and written reports. oral reports. The final step in the appraisal is the initiation of corrective action when necessary. Basic action asks how and why performance deviated. if necessary s Communicate Performance expectations Measurement of Actual Performance Figure 9. one is immediate and deals predominantly with symptoms. 5) Establish Performance Standards s s Initiate Corrective Action. Immediate action corrects something right now and gets things back on track.Performance Management and Potential Assessment Four common sources of information are frequently used by mangers to measure actual performance: personal observation. to a great extent. the discussion of the appraisal can have negative as well as positive motivational consequences.” Figure 9. very important. What we measure determines. Of course.1 shows the performance process in summary. what people in a organization will attempt to excel at. Immediate corrective action is often described as “putting out fires”. In some instances. where as basic corrective action gets to the source of deviation and seeks to adjust the differences permanently. The selection of the wrong criteria can result in serious dysfunctional consequences.

.................. d) The opportunity to clarify expectations of the contribution the manager expects from teams and individuals... ................... ...................... Activity A Assume you are currently operating an appraisal system in your organisation...................... Training and development needs can be identified more clearly........ ...... c) e) f) d) Expectations and long-term plans can be developed............................................... A number of methods are now available to assess the performance of the employees................. A culture of continuous improvement and success can be created and maintained......6 BENEFITS OF PERFORMANCE APPRAISAL The benefits of an effective appraisal scheme can be summed up under three categories......... a) Improved performance throughout the organization due to more effective communication of the organization’s objectives and values.................................................... Identification of ideas for improvement....................... increased sense of cohesiveness and loyalty and improved relationships between managers and staff.................. Performance Planning and Review b) Improvement in the tasks performed by each member of the staff................. g) People with potential can be identified and career development plans can be formulated for future staff requirements............... e) f) 3) The opportunity to re-prioritize targets.. for appraiser and for appraisee.............................. Increased sense of personal value................................ 9.............. 1) For the Organizations: Following benefits would accrue to the organization..9. Increased motivation..................7 PERFORMANCE APPRAISAL METHODS This section looks at how management can actually establish performance standards and devise instruments that can be used to measure and appraise an employee’s performance........................ For the appraisee: For the appraisee the following benefits would accrue: a) c) b) Increased job satisfaction..... 2 1 .... How will you carry out the same following the above sections........ The opportunity to link team and individual objectives and targets with departmental and organizational objectives.................................................... These are for the organization.......... 2) For the appraiser : The following benefits would accrue to the appraiser: a) c) The opportunity to develop an overview of individual jobs and departments.................... A means of forming a more productive relationship with staff based on mutual trust and understanding............ b) Identification of ideas for improvements. ...

Additionally. a list of critical incidents on a given employees provides a rich set of examples from which the employee can be shown which of his or her behaviors are desirable and which ones call for improvement. The final evaluation can then be returned to the rating manager for discussion with the subordinate. but the rater has to choose between two or more statements. attendance. The evaluator merely goes down the list and gives “yes” or “no” responses. with their focus on behaviors.” but that does not tell anything about how well the job is being done. In the design of the graphic scale. this method is most valid when abstract traits like loyalty or integrity are avoided unless they can be defined in more specific behavioral terms. They are used to assess factors such as quantity and quality of work. There is greater standardization of items so comparability with other individuals in diverse job categories is possible. There are typically five to ten points on the continuum. not vaguely defined personality traits. A behaviorally based appraisal such as this should be more valid than trait-based appraisals because it is clearly more job related. However. cooperation. loyalty. or someone from the personnel department can provide the feedback to the subordinate. 2) Checklist In the checklist.Performance Management and Potential Assessment 1) Critical Incident Method Critical incident appraisal focuses the rater’s attention on those critical or key behaviors that make the difference between doing a job effectively and doing it ineffectively. The assessor goes down the list of factors and notes that point along the scale or continuum that list of factors and notes that point along the scale or continuum that best describes the employee. Once the checklist is complete. Following are some of the advantages of this method: a) b) c) They are less time-consuming to develop and administer. Therefore the comparison and ranking of subordinates is difficult. Therefore the rater does not actually evaluate the employee’s performance. They permit quantitative analysis. the challenge is to ensure that both the factors evaluated and the scale pints are clearly understood and unambiguous to the rater. it is usually evaluated by the staff of personnel department. judge performance rather than personalities. 4) Forced Choice Method The forced choice appraisal is a special type of checklist. honesty. not the rater himself. In this approach to appraisal. dependability. and initiative etc. It is one thing to say that an employee is “aggressive” or “imaginative or “relaxed. 3) Graphic Rating Scale One of the oldest and most popular methods of appraisal is the graphic rating scale. Critical incidents. job knowledge. Should ambiguity occur. often weighting the factors in relationship to their importance. This method suffers from following two drawbacks: a) b) Supervisors are reluctant to write these reports on a daily or even weekly basis for all of their subordinates as it is time consuming and burdensome for them Critical incidents do not lend themselves to quantification. he/she merely records it. integrity. What the appraiser does is write down little anecdotes that describe what the employee did that was especially effective or ineffective. specific behaviors are cited. An analyst in the personnel department then scores the checklist. the evaluator uses a bit of behavioral descriptions and checks of those behaviors that apply to the employee. The 2 2 . all of which may be favorable or unfavorable. bias is introduced. attitudes.

it is very possible that they may all be excellent. is the “zero-sum game”: consideration.appraiser’s job is to identify which statement is most (or in some cases least) descriptive of the individual being evaluated. 6) Group Order Ranking The group order ranking requires the evaluator to place employees into a particular classification. and measurable job behavior. if two of the workers in the third or fourth quartiles b) 2 3 . the right answers are not known to the rater. It looks at over all performance. The final group of behavior incidents are then numerically scaled to a level of performance that each is perceived to represent. Those that are sorted into the dimension for which they were generated are retained. These behavioral examples are then retranslated into appropriate performance dimensions. carries out orders. The appraiser rates the employees based on items along continuum. Someone in the personnel department scores the answers based on the key. This method has following advantages: a) b) c) It does tend to reduce rating errors. Behaviorally anchored rating scales specify definite. of course. At the extreme. any change must add up to zero. executes. This means. such as anticipates. and low quarter! Another disadvantage. four must also be relegated to the bottom fifth. second quarter. for instance. but the points are examples of actual behavior on the given job rather than general descriptions or traits. solves immediate problems. three are in the top quarter. The sixth-best employee. So if a rater has twenty subordinates. observable. The incidents that are retranslated and have high rater agreement on performance effectiveness are retained for use as anchors on the performance dimension. It has following disadvantages: a) It is not good if the number of employee being compared is small. if there are twelve employees in a department performing at different levels of effectiveness. Performance Planning and Review 5) Behaviourally Anchored Rating Scales These scales combine major elements from the critical incident and graphic rating scale approaches. For example. It is based on the behavior of the employees. and so forth. The major advantages of the forced choice method are: a) b) c) Since the appraiser does not know the “right” answers. and handles emergency situations. three in the second quarter. plans. The results of the above processes are behavioral descriptions. the next 5 per cent. third quarter. Ironically. which plagues all relative measures. It assesses behavior over traits. This key should be validated so management is in a position to say that individuals with higher scores are better-performing employees.” Evaluators are asked to rank the employees in the top 5 per cent. would be in the second quartile. It clarifies to both the employee and rater which behaviors connote good performance and which connote bad. To reduce bias. it reduces bias. such as “top one-fifth” or “second one-fifth. by definition. only four can be in the top fifth and. Examples of job-related behavior and performance dimensions are generated by asking participants to give specific illustrations on effective and ineffective behavior regarding each performance dimension. if the evaluator is looking at only four employees. the next 15 per cent. yet the evaluator may be forced to rank them into top quarter. The advantage of this method is that it prevent raters from inflating their evaluations so everyone looks good or from homogenizing the evaluations for everyone is rated near the average outcome that are usual with the graphic rating scale.

in turn. self-control. Again. when in absolute terms his or her performance is outstanding. action planning. estimating the time requirement for each activity. The MBO philosophy is built on the assumptions that individuals can be responsible. these manager-subordinate reviews are conducted in a constructive rather than punitive manner. is compared in the same way. 9) Management by Objectives Management by objectives (MBO) is a process that converts organizational objectives into individual objectives. but the method can become unwieldy when large numbers of employees are being compared. and periodic reviews:a) In goal setting. It ranks each individual in relationship to all others on a one-on-one basis. with periodic progress reviews. This step includes identifying the activities necessary to accomplish the objective. A score is obtained for each employee by simply counting the number of pairs in which the individual is the preferred member. At the individual level. This method ensures that each employee is compared against every other. the manager and subordinate jointly identify those goals that are critical for the subordinate to achieve in order to fulfill the requirements of the job as determined in job analysis. the means are determined for achieving the ends established in goals setting. Reviews are not meant to degrade the individual but to aid in future performance. Self-control refers to the systematic monitoring and measuring of performance. with each of the other nine. and determining the resources required to complete each activity. Each of the remaining nine persons. then our sixth best employee now fit into the third quarter. c) Because comparison are relative. b) c) d) 2 4 . Only one can be the “best. and a ranking is evolved by the greatest number of preferred “victories”. consistent with MBO philosophy. In action planning. realistic plans are developed to attain the objectives. That is. corrective action is initiated when behavior deviates from the standards established in the goal-setting phase. 7) Individual Ranking The individual ranking method requires the evaluator merely to list all the employees in an order from highest to lowest.” If the evaluator is required to appraise thirty individuals ranking method carries the same pluses and minuses as group order ranking. can exercise self-direction. 8) Paired Comparison The paired comparison method is calculated by taking the total of [n (n-1)]/2 comparisons.Performance Management and Potential Assessment leave the department and are not replaced. an employee who is mediocre may score high only because he or she is the “best of the worst” Similarly. and the number of items this person is preferred in any of the nine pairs is tabulated. If ten people are being evaluated. establishing the critical relationships between these activities. Ideally. an excellent performer who is matched against “stiff” competition may be evaluated poorly. and do not require external controls and threats of punishment. These goals are agreed upon and then become the standards by which the employee’s results will be evaluated. It can be thought of as consisting of four steps: goal setting. by having the individual review his or her own performance. Finally. These reviews should take place at least two or three times a year. the first person is compared. the organization’s overall objectives are used as guidelines from which departmental and individual objectives are set.

360 degree feedback allows each individual to understand how his effectiveness as an employee. The purpose of the feedback is to: a) b) assist each individual to understand his or her strengths and weaknesses. These features will manifest themselves in well-managed. full-circle appraisal. multisource feedback. People whoe are chosen as raters are usually those that interact routinely with the person receiving feedback. Team members know more about how other members are performing than their supervisor. 360 feedback can also save managers’ time in that they can spend less energy providing feedback as more people participate in the process. Employees have a greater commitment to objectives that they have participated in developing than to those unilaterally set by their bosses. Team Development: Helps team members learn to work more effectively together. and supervisors. Multirater feedback makes team members more accountable to each other as they share the knowledge that they will provide b) 2 5 . goals and values. co-workers. a) Improved Feedback from more sources: Provides well-rounded feedback from peers. Following are some of the major considerations in using 360 degree feedback. contribute insights into aspects of his or her work needing professional development. It assists the planning and control functions and provides motivation. select the raters. vision. The feedback provides insight about the skills and behaviours desired in the organization to accomplish the mission . The feedback is firmly planted in behaviours needed to exceed customer expectations. colleagues. fellow members of project teams.Following are the advantages of MBO: a) b) c) It is result –oriented. and manage and integrate the process into a larger performance management system. and group performance review. well-integrated 360 degree processes. Co-worker perception is important and the process helps people understand how other employees view their work. co-worker. direct reports. The most effective processes provide feedback that is based on behaviours that other employees can see. or staff member is viewed by others. and suppliers. 360 degree feedback is a method and a tool that provides each employee the opportunity to receive performance feedback from his or her supervisor and four to eight peers. use the feedback review the feedback. subordinates and customers. Features of 360 degree appraisal Organizations that are using with the 360 degree component of their performance management systems identify following positive features of the process. reporting staff. This can be a definite improvement over feedback from a single individual. These are basically concerned with how to: a) b) c) d) e) select the feedback tool and process. Employees know exactly what is expected of them and how they will be evaluated. Performance Planning and Review 10) 360 degree appraisal The 360 degree feedback process involves collecting perceptions about a person’s behaviour and the impact of that behaviour from the person’s boss or bosses. Other names for 360 degree feedback are multi-rater feedback. internal ad external customers.

This feedback should enable the individual to improve the quality. Training Needs Assessment: Multirater feedback provides comprehensive information about organization training needs and thus helps in mounting relevant training programmes. organizations per se are no longer responsible for developing the careers of thei employees. Such programmes add value to the contribution made by the individual employee. To the team : To the Organization: 2 6 . d) e) f) g) Benefits of 360 degree Appraisal: Following benefits of 360 degree Appraisal accrue to the individual. team and organization: To the individual: a) b) c) d) e) a) b) c) d) e) a) b) c) d) e) This process helps individuals to understand how others perceive them It uncovers blind spots It provides feedback that is essential for learning Individuals can better manage their own performance and careers Quantifiable data on soft skills is made available. A well-planned process can improve communication and team development. more reflective of their performance.Performance Management and Potential Assessment input on each member’s performance. It reinforces corporate culture and openness and trust It provides better opportunities for career development for employees Employees get growth and promotional opportunities It improves customer service by having customers contribute to evaluation It facilitates the conduct of relevant training programmes. biases because of varying reasons are reduced. Improved Customer Services: Feedback process involves the internal or external customer. Reduced Discrimination Risk: When feedback comes from a number of individuals in various job functions. Each person receives valuable feedback about the quality of his product or services. reliability. It increases communication between team members It generates higher levels of trust ad better communication as individuals identify the causes of breakdowns It creates better team environment as people discover how to treat others and how they want to be treated It supports teamwork by involving team members in the development process It increased team effectiveness. Responsibility for Career Development: For many reasons. and more validating than feedback from the supervisor along. many employees feel 360 degree feedback is more accurate. The judgemental errors of the supervisors are eliminated as the feedback comes from various sources. Multirater feedback can provide excellent information to individuals about what they need to do to enhance their career. c) Personal and Organizational Performance Development: 360 degree feedback is one of the best methods for understanding personal and organizational developmental needs. promptness. and comprehesiveness of these products and services to his/her customers. Additionally. This makes the information more useful for both career and personal development.

.. It is a methodology of generating information and using this information to help employees............. Feedback can be an effective tool provided: a) b) c) d) Both negative and positive feedbacks are communicated. In other words it should be descriptive and not evaluative.............. It should be devoid of all discussions on salary.. .......... Since counselling is a difficult activity.... ................ When people are tense and hostile...... It focuses on behavior rather than on the individual......... ........................................................ One of the fallout effects of this dyadic interaction is the identification of training needs.... the supervisor should be specially trained in social competence to handle these aspects of his job...... attempts should be made to counsel and help rather than be critical........... Counselling provides an opportunity to the supervisor to give feedback to the subordinate on the performance and performance related behavior.............................................. Several conditions for effective counseling are identified....... it might be seen as criticism which may further deteriorate the relationship........................................ The Following are some of the important ones: a) b) c) d) e) A climate of openness and trust is necessary....................... On the other hand..... Appraisal reports serve as spring board for discussion........ The counselor should be tactful and helpful rather than critical and fault finding..................... The focus should be on the work-related problems and difficulties rather than personality or individuals likes................................................. details are forgotten and recall may be jeopardized by distortions. The subordinate should feel comfortable to participate without any hesitation or inhibition........................................................... This provides an environment for the subordinate to talk about his part of the story first... Any discussion on compensation changes the focus from performance improvement to the relationship between performance and reward............... 2 7 .................................. As time passes................................... ................ reward and punishment... Delayed feedback is neither helpful nor effective......................... It is not just an opinion but is backed by data........8 PERFORMANCE COUNSELLING The main objective of performance counselling is to help the employee to overcome his weaknesses and to reinforce his strengths..... The skill required to do well in these situations is often referred to as the use of non-directive technique......... Performance Planning and Review 9......... It is timely.........Activity B Review the above mentioned methods of Performance Appraisal and evaluate their advantages and disadvantages in the context of your organisation........................................ The essential feature is to provide an employee an opportunity to talk and share his experience which the supervisor should be able to listen and then process and provide feedback to him................ A sample of non-directive technique could be to start the interview by asking “tell me how you think you are doing”..... In this sense it is a developmental process where the supervisor and the subordinate discuss the past performance with a view to help the subordinate to improve and become more effective in future..... dislikes or idiosyncrasies....................... ...

...........Performance Management and Potential Assessment Many supervisors are hesitant to initiate performance counseling sessions because the subordinates may raise uneasy questions for which they may not have answers........ Career path basically refers to opportunities for growth in the organization........... ........................... People do not like to work on deadend jobs...... status and better benefits and working conditions. answer mail or memo in in-basket situation and a 2 8 ............... That is why there is a need to train supervisors in the techniques of counseling sessions. Those where changes in position bring about changes in job along with increased salary........ In many engineering organizations................... identifying training needs and developing second line in command..................................................... It is a method which uses a variety of technique to evaluate employees for manpower requirements in the organization. an employee may grow in the same line with increased responsibilities or may move to other projects with different job demands............. Career path in such situations means a change in status..................... Career Path One of the important objectives of appraisal.. Most HRM practitioners favor restructuring of a job to provide reasonably long and orderly career growth........... job remaining more or less the same..................... It also helps in designing salary structures.. .................. Availability of such opportunities has tremendous motivational value...... where an assistant professor may grow to became associate professor and a professor........... Activity C List out the contexts in which Performance Counselling is carried out for a particular employee in your organization.............. Potential appraisal is different from performance appraisal as the latter limits evaluation to what the subordinate has done on the job (or his performance) whereas the former on the other hand..................... better salary and benefits and perhaps less load and better working condition... Or they may question their judgments and decisions which may lead to argument....... One major outcome of performance counseling is identification of the potential of the employee’s skills and abilities not known and utilized by the organization..... particularly potential appraisal is to help employees to move upwards in the organization......... Hence............................ ........ but the nature of job (teaching and research) remains the same................. The distinct advantage of a thoroughly carried out potential appraisal are given below: a) b) The organizations are able to identify individuals who can take higher responsibilities............ It also conveys the message that people are not working in dead-end jobs in the organization................ Career paths can be of two kinds: a) Those where designations changes to a higher level position................... b) One important mechanism to identify the promotability of employees is Assessment Centre..................... It uses situational tests including exercises requiring participants to prepare written reports after analyzing management problem.... .... A good example of this is found in teaching institutions..... make oral presentations.............................. seeks to examine what the subordinate can do?.......... a career ladder with clearly defined steps becomes an integral component of human resources management...... debate and misunderstanding...........................................

that is. 5) Central Tendency It is possible that regardless of whom the appraiser evaluates and what traits are used. and the latter as negative leniency error. The former is referred to as positive leniency error.9 PROBLEMS IN PERFORMANCE APPRAISAL While it is assumed that performance appraisal process and techniques present an objective system it would be naïve to assume. Similarly. they project those perceptions onto others. an individual’s performance becomes overstated. 2 9 . that is rated higher than it actually should. a negative leniency error understates performance. if an employee tends to be conscientious and dependable. giving the individuals as lower appraisal. central tendency. 4) Low Appraiser Motivation What are the consequences of the appraisal? If the evaluator knows that a poor appraisal could significantly hurt the employee’s future particularly opportunities for promotion or a salary increase the evaluator may be reluctant to give a realistic appraisal. Relative to the true or actual performance an individual exhibits. that all practicing managers impartially interpret and standardize the criteria upon which their subordinates will be appraised. the evaluator who perceives him self or herself as aggressive may evaluate others by looking for aggressiveness. Those who demonstrate this characteristic tend to benefit. Based on the perception that evaluators have of themselves. Central tendency is the reluctance to make extreme ratings (in either directions). the supervisor might become biased toward that individual to the extent that he will rate him/her high on many desirable attributes. while others are penalized. Assessors observe the behavior and make independent reports of their evaluation of the strengths and weaknesses of the attributes being studied. a form of range restriction. the inability to distinguish between and among ratees. some evaluators mark high and others low. For example. however. When evaluators are positively lenient in their appraisal. 3) Similarity Error When evaluators rate other people in the same ways that the evaluators perceive themselves they are making a similarity error. There is evidence that it is more difficult to obtain accurate appraisals when important rewards depend on the results. Some of these errors are discussed below: 1) Leniency Error Every evaluator has his/her own value system that acts as a standard against which appraisals are made.whole lot of situational decision making exercises. For example. Performance Planning and Review 9. In spite of our recognition that a completely error-free performance appraisal can only be idealized a number of errors that significantly impede objective evaluation. 2) Halo Effect The halo effect or error is a tendency to rate high or low on all factors due to the impression of a high or low rating on some specific factor. It is also possible that the evaluator’s ability to appraise objectively and accurately has been impeded by a failure to use the extremes of the scale. the pattern of evaluation remains the same.

he becomes very active. All this creates an illusion of high efficiency and plays a significant role in the appraisal decisions. As long as appraisal format and procedure continues to involve subjective judgment. Here the initial impression influences the decision on year end appraisal irrespective of whether the employee has been able to keep up the initial impression or not. tasks are taken seriously and the bosses are constantly appraised of the progress and problems. Traits like loyalty. a) The supervisors should be told that performance appraisal is an integral part of their job duties and that they themselves would be evaluated on how seriously they have taken this exercise. To help them do this task well. In other words. and self-expression are intuitively appealing as desirable characteristics in employees. files move faster. rates him high. in fact have little or no performance relationship. Are individuals who are evaluated as high on 3 0 . courage. Suddenly there is an aura of efficiency. The opposite of recency is primacy effect. b) c) d) e) f) In addition. how do we know whether what is appraised is what was supposed to be appraised. if not. But the relevant question is. reliability. In reality though it refers only to his two to three month’s performance. this question cannot be fully answered and perhaps. help the employee to achieve the required improvement.Performance Management and Potential Assessment 6) Recency vs.10 EFFECTIVE PERFORMANCE APPRAISAL The issues raised above essentially focus on the problems of reliability and validity of performance appraisal. the following steps can help improve the system. comes appraisal time. The supervisor should monitor now and then whether the improvement in performance in the areas found weak is taking place or not and. 9. The supervisor gets railroaded into believing that the employee is alert and hence. This is the most important factor in making performance appraisal effective. First impression is the last impression is perhaps the most befitting description of this error. If changes in the format are not incorporated the reports may not generate the kind of date needed to satisfy appraisal objectives. Many traits often considered to be related to good performance may. following can also help in improving the effectiveness of an appraisal: a) Behaviorally Based Measures The evidence strongly favors behaviorally based measures over those developed around traits. Finally. abilities and skills to perform these tasks. they should be provided systematic training on writing performance reports and handling performance interviews. reviewing. Design the system as simple as possible so that it is neither difficult to understand nor impossible to practice Generally after the appraisal interview the employee is left alone to improve his performance on the dimensions. As time passes changes in technology and work environment necessitate changes in tasks. the appraisal systems every now and then help updating it. Primacy Effect Recency refers to the proximity or closeness to appraisal period. initiative. Perhaps. Conduct job evaluation studies and prepare job descriptions/roles and develop separate forms for various positions in the organization. will not be answered completely because no matter how objective a system is designed it will continue to be subjective. Generally an employee takes it easy for the whole year and does little to get the punishment. However. and making suitable evolutionary changes in it.

an increase in the number of raters will tend to find the majority congregating about the middle.11 SUMMARY Performance appraisal is concerned with setting objectives for individuals. nine having rated him or her excellent and one poor. It is also important to be aware of the problems associated with performance appraisal systems. If rater error tends to follow a normal curve. Appraisal systems should be designed to focus employees on both their short and long-term objectives and career goals. people explicitly familiar with the jobs involved mainly because they too are doing the same thing. can become a problem. b) Ongoing Feedback Employees like to know how they are doing. the formal sitting down step should not be particularly traumatic for either party. Peer evaluations are conducted by employees’ coworkers. each will improve. 3 1 . there will be no surprises at the time of the annual formal review. Performance Planning and Review 9. By providing the employee with frequent opportunities to discuss performance before any reward or punishment consequences occur. Because they deal with specific examples of performance-both good and bad. and (b) their recommendations tend to be more specific regarding job behaviors-unless specificity exists. it is a problem merely because managers put off such reviews. they avoid the problem of using inappropriate substitutes. Well designed appraisal systems benefit the organisation. we can discount the value of the one poor evaluation. managers and individuals in different ways and need to fulfill certain key objectives if they are to be successful. where the manager shares the subordinates evaluations with them. If a person has had ten supervisors. This is particularly likely if the appraisal is negative. as a unit. the probability of attaining more accurate information increases. One of the easiest means is through peer evaluations. c) Multiple Raters As the number of raters increase.those traits higher performers than those who rate low? Traits like loyalty and initiative may be prized by managers. monitoring progress towards these objectives on a regular basis in our atmosphere of trust and cooperation between the appraiser and the appraisee. d) Peer Evaluations Periodically managers find it difficult to evaluate their subordinates’ performance because they are not working with them every day. The annual review. Unfortunately. constructive measures are hard to gain. unless they have this information. where ongoing feedback has been provided. they may not be making an accurate assessment. In fact. Behaviorally derived measures can deal with this objection. The solution lies in having the manager share with the subordinate both expectations and disappointments on a day-today basis. The main advantages to peer evaluation are that (a) there is tendency for co-workers to offer more constructive insight to each other so that. In some cases. they are the ones most aware of co-workers’ day to-day work behavior and should be given the opportunity to provide the management with some feedback. but there is no evidence to support that certain traits will be adequate synonyms for performance in large cross-section of jobs.

(2002) Human Resource Management Delhi.Performance Management and Potential Assessment 9. Mirza S.12 SELF ASSESSMENT QUESTIONS 1) Explain the Performance Appraisal System. (2003) Human Resource Management (3rd Edition) New Delhi Tata McGraw Hill Publishing Company Limited. De Cenzo. 3 2 . (1996) Performance Appraisals London: Kogon Page. David. Gary. Martin. Write short notes of: a) Management by objectives b) Behaviourly Anchored Rating Scale c) Performance Counselling 2) 3) 9. Prentice Hall of India Pvt.. Robbins. Response Books. Pearson Education. Saiyadain. Fisher.V.. Rao. A(1993) Human Resource Management New Delhi. Stephen P. Describe the 360 degree appraisal with the help of examples. Ltd. Ltd. Either suggest improvements to an existing appraisal system in your organisation or design an appraisal system which would meet the objectives outlines in this chapter. (2004) Performance Management and Appraisal Systems HR Tools for global competitiveness New Delhi.13 FURTHER READINGS Dessler.. Pvt. T.

1 10. In this backdrop. the excellent chief engineer is promoted to become a very poor engineering director. Very often the first class salesman is promoted to become a mediocre sales manager.5 10. and define ‘succession planning’ and differentiate it from career planning. also keep records on the potential of their employees for future promotion opportunities. since competence of a member of staff to perform well in the current job is not an automatic indicator of potential for promotion. understand what ‘assessment centre’ is and how it functions. this unit deals with mechanisms of potential appraisals and ways and means employed by organizations such as assessment centres to provide growth opportunities to employees.1 INTRODUCTION Employees aspire to grow and expect this growth to take place at frequent intervals. discuss the process of career planning and its importance.UNIT 10 POTENTIAL APPRAISAL. ASSESSMENT CENTRES AND CAREER AND SUCCESSION PLANNING Objectives After going through this unit. you should be able to : l l l l l Potential Appraisal.7 10.3 10. Structure 10. increased productivity and fulfilment of corporate objectives can be possible only if the employees are feeling satisfaction and achievement. Achievement of organisational goal.4 10.2 POTENTIAL APPRAISAL Many companies. There are many people who have the desire and potential to advance through the job they are in. wanting the 3 3 .2 10. which carry out performance appraisal. To achieve this there is a requirement for a well thought out system of career and succession planning in an organisation. Assessment Centres and Career and Succession Planning explain the concept of potential appraisal and its importance.8 Introduction Potential Appraisal Assessment Centres Career Planning Succession Planning Summary Self Assessment Questions Further Readings 10.6 10. differentiate between assessment centres and development centres. Potential can be defined as ‘a latent but unrealised ability’. The task of identifying potential for promotion cannot be easy for the appraising manager. 10. and the star football player struggles to be a football manager.

reformulate or transform a complicated situation into manageable terms. These may be areas where the employee has not had a real opportunity to demonstrate the potential ability and there may be areas with which you. Imagination: The ability to let the mind range over a wide variety of possible causes of action. This requires an in-depth study of the positions which may become vacant. Tom (1983). ability to provide professional guidance to produce group results) 3 4 Outstanding Very Good Good Satisfactory Unsatisfactory . U. particularly when the individual is using personal influence rather than ‘management authority’.Performance Management and Potential Assessment opportunity to operate at a higher level of competence in the same type of work. Part III of the Performance Appraisal form of Maruti Udyog Ltd. (Illustration 1).. Breadth of vision: The ability to examine a problem in the context of a much broader framework of reference. There are few indicators of potential (Box 1) which may be considered. as this is seen in case of Maruti Udyog Ltd. McGraw Hill Ltd. Box 1: Indicators of Potential l A sense of reality: This is the extent to which a person thinks and acts objectively. l l l l Source: Adopted from Philip. potential appraisal is also done by the employees’ supervisor who has had the opportunity to observe the employee for some time. Generally last part of appraisal deals with potential appraisal. within a specific situation. Outstanding 2) Very Good Good Satisfactory Unsatisfactory Ability to develop subordinates (Sensitivity to develop subordinate’s mental skills.K. going beyond conventional approaches to situations and not being confined to ‘This is the way it is always being done!’ Power of analysis: The capacity to break down. The potential is the one that the appraiser should be able to identity and develop because of the knowledge of the job. Persuasiveness: The ability to sell ideas to other people and gain a continuing commitment. being able to detect. optimal utilisation of available manpower resources. directing and co-ordinating efforts and effective follow up action to ensure accomplishment of planned objectives). as the appraisers are not familiar. solicits information to assess the future potential and ability of its L8 and above categories of workers to assume a position of higher responsibility (L13) in the following format. relationships with those aspects which could be affecting the situation. Potential Appraisal at Maruti Udyog Ltd. Potential appraisal may be done either regularly or as and when required. resisting purely emotional pressures but pursuing realistic projects with enthusiasm. Making Performance Appraisal Work. Like the Performance Appraisal. Illustration 1. 1) Group effectiveness (Maintaining and improving morale of group and helping its identification with organisational objectives. looking carefully at the specific skills that the new position may demand and also taking into consideration the more subjective areas like ‘qualities’ required.

Assessment centers have consistently demonstrated results that predict later job performance in managerial positions. Assessment centers are a more elaborate set of performance simulation tests. particularly potential appraisal is to help employees to move upwards in the organization. in-basket problem-solving exercises. People do not like to work on deadend jobs. Potential Appraisal. P. Line executives.3 ASSESSMENT CENTRES Employees are not contended by just having a job. and business decision games. It also helps in designing salary structures. The AT&T Company designated a particular building where the Assessments were carried out. a career ladder with clearly defined steps becomes an integral component of human resources management. Assessment Centres and Career and Succession Planning Outstanding Very Good Good Satisfactory Unsatisfactory Source: Adapted from Tripathi. specifically designed to evaluate a candidate’s managerial potential. In many engineering organisations. A good example of this is found in teaching institutions. Career path in such situtions means a change in status. status and better benefits and working conditions. For instance. Those where changes in position bring about changes in job along with increased salary. activities might include interviews. job remaining more or less the same.3) Potential Capability (Overall rating for managerial capability to head a department based on your assessment related to the above two points). Based on a list of descriptive dimensions that the actual job incumbent has to meet. and/or trained psychologists evaluate candidates as they go through one to several days of exercises that simulate real problems that they would confront on the job. The American Telephone and Telegraph Company (AT&T) began experiments with Assessment Centre approach in the 1950’s as a part of a wide programme of management development. Human Resource Development. Career Path One of the important objectives of appraisal. 3 5 . An “assessment centre” is a multiple assessment of several individuals performed simultaneously by a group of trained evaluators using a variety of group and individual exercises. Hence. but the nature of job (teaching and research) remains the same.C. They want growth and individual development in the organization. b) 10. Career paths can be of two kinds: a) Those where designations changes to a higher level position. where an assistant professor may grow to become associate professor and a professor. better salary and benefits and perhaps less load and better working conditions. a candidate might be required to play the role of a manager who must decide how to respond to ten memos in his/her in-basket within a two-hour period. Sultan Chand & Sons. Most HRM practitioners favour restructuring of a job to provide reasonably long and orderly career growth. New Delhi. This building became known as Assessment centre and the name has stuck as a way of referring to the method. Career path basically refers to opportunities for growth in the organization. identifying training needs and developing second line in command. Availability of such opportunities has tremendous motivational value. an employee may grow in the same line with increased responsibilities or may move to other projects with different job demands. supervisors. The method became established in the industry in the USA during the 1960’s and 1970’s and was introduced in UK during this period. (2003). leaderless group discussions.

in major part. the adequacy and appropriateness of prior information about the job. analyses can be done of actual or projected tasks or roles that will comprise the new job. Any job analysis or competency modeling must result in clearly specified categories of behavior that can be observed in assessment procedures. and the similarity of the new job to jobs that have been studied previously. refers to an organizational strength. According to IPMA (The International Personnel Management Association). and job performance indices important to job success in order to identify what should be evaluated by the assessment center. as used in various contemporary sources. evidence of the comparability or generalizability of the jobs must be provided. A competency. are pooled. uses a simulation as a part of the evaluation of an individual. a valued objective. A competency may be considered a behavioral dimension for the purposes of assessment in an assessment center if i) ii) it can be defined precisely expressed in terms of behaviors observable on the job or in a job family and in simulation exercises. If past job analyses and research are used to select dimensions and exercises for a new job. comprehensive accounts of behavior. attributes. Competency-modeling procedures may be used to determine the dimensions/competencies to be assessed by the assessment center. Procedures that do not conform to all the guidelines here should not be represented as assessment centers or imply that they are assessment centers by using the term “assessment center” as part of the title. an organizational goal. If job does not currently exist. job level. such as when a psychologist or human resource professional. A “competency” may or may not be amenable to behavioral assessment as defined herein. The specific objective is to reinforce strengths. 3 6 . weaknesses and potential of employees. They are used to assess the strengths. the complexity of the job. each should be judged on its own merits. Several trained observers and techniques are used. overcome weaknesses and exploit potential of the employees through training and developmental efforts. Such personnel assessment procedures are not covered by these guidelines. acting alone. position. competencies. These judgments are pooled in a meeting among the assessors or by a statistical integration process.Performance Management and Potential Assessment This method is now regarded as one of the most accurate and valid assessment procedures and is widely used for selection and development. The discussion results in evaluations of the performance of the assessees on the dimensions/ competencies or other variables that the assessment center is designed to measure. or a grouping of related behaviors or attributes. the collection and quantitative evaluation of essential job elements. or key objectives of the organization. a construct. There is a difference between an assessment center and assessment center methodology. The following are the essential elements for a process to be considered an assessment center: a) Job Analysis A job analysis of relevant behaviors must be conducted to determine the dimensions. or job family. and often ratings of it. Various features of the assessment center methodology are used in procedures that do not meet all of the guidelines set forth here. strategies. Target dimensions can also be identified from an analysis of the vision. an assessment center consists of a standardized evaluation of behavior based on multiple inputs. values. The type and extent of the job analysis depend on the purpose of assessment. Rigor in this regard is defined as the involvement of subject matter experts who are knowledgeable about job requirements. In an integration discussion. from specifically developed assessment simulations. and the production of evidence of reliable results. if such procedures are conducted with the same rigor as traditional job analysis methods. Judgments about behavior are made.

Potential Appraisal. Assessment Centres and Career and Succession Planning 3 7 . The assessment techniques will be pretested to ensure that the techniques provide reliable. A typical ratio of assessees to assessors is two to one. organizational level. questionnaires. Examples of simulations include. Stimuli may also be presented through video based or virtual simulations delivered via computer. the experience of the assessors. the type of integration carried out. qualities. abilities. skills. At least one—and usually several—job related simulations must be included in each assessment center. interaction (interview) simulations. this should provide assessors with sufficient opportunities to observe competency-related behavior. group exercises. objective and relevant behavioral information. c) Assessment Techniques The techniques used in the assessment center must be designed to provide information for evaluating the dimensions previously determined by the job analysis. and knowledge. sex. thorough review by subject matter experts as to the accuracy and representativeness of behavioral sampling and/or evidence from the use of these techniques for similar jobs in similar organizations. sociometric devices. attributes. The assessment techniques are developed or chosen to elicit a variety of behaviors and information relevant to the selected competencies/ dimensions. aptitudes. and functional work area. Assessment center designers also should be careful to design exercises that reliably elicit a large number of competency-related behaviors. When selecting a group of assessors. Self-assessment and 360 degree assessment data may be gathered as assessment information. A simulation is an exercise or technique designed to elicit behaviors related to dimensions of performance on the job requiring the participants to respond behaviorally to situational stimuli. e) Simulations The assessment techniques must include a sufficient number of job related simulations to allow opportunities to observe the candidate’s behavior related to each competency/ dimension being assessed. b) Behavioural Classification Assessment centre requires that Behaviors displayed by participants must be classified into meaningful and relevant categories such as dimensions. the roles of the assessors. In turn. consider characteristics such as diversity of age. the amount of assessor training.iii) a competency also must be shown to be related to success in the target job or position or job family. The ratio of assessees to assessors is a function of several variables. Pre-testing might entail trial administration with participants similar to assessment center candidates. in-basket exercises. presentations. f) Assessors Multiple assessors must be used to observe and evaluate each assessee. and fact-finding exercises. characteristics. video. A participant’s current supervisor should not be involved in the assessment of a direct subordinate when the resulting data will be used for selection or promotional purposes. This linkage should be documented in a competency-by exercise/ assessment technique matrix. and the purpose of the assessment center. Assessment center developers should establish a link from behaviors to competencies to exercises/ assessment techniques. competencies. interviews. including the type of exercises used. These can include tests. d) Multiple Assessments Multiple assessment techniques must be used. or an intranet. the Internet. but are not limited to. Computer technology may be used to assess in those situations in which it can be shown that a computer program evaluates behaviors at least as well as a human assessor. the dimensions to be evaluated. and simulations.

The training should focus on processing of information. During the integration discussion of each dimension. drawing conclusions. behavioral observation scales. Methods of combining assessors’ evaluations of information must be supported by the reliability of the assessors’ discussions. 3 8 . This data can be used for: a) Recruitment and Promotion: Where particular positions which need to be filled exist. Computer technology may also be used to support the data integration process provided the conditions of this section are met. The integration of information may be accomplished by consensus or by some other method of arriving at a joint decision. d) Organizational Planning: Assessment centers can be used to identify area where widespread skill deficiencies exist within organizations. i) Reports Assessors must prepare a report of the observations made during each exercise before the integration discussion. h) Recording Behaviour A systematic procedure must be used by assessors to record specific behavioral observations accurately at the time of observation. c) Diagnosis of Training and Development Needs: It offers a chance to establish individual training and development needs while providing candidates with a greater appreciation of their needs. so that training can be developed in these areas. Uses of Assessment Centres Data generated during the process of Assessment can become extremely useful in identifying employee potential for growth. these reports must be independently made. both internal and external can be assessed for suitability to those specific posts.Performance Management and Potential Assessment g) Assessor Training Assessors must receive thorough training and demonstrate performance that meets requirements prior to participating in an assessment center. Not only this. High potential people also need to be motivated so that they remain with the organization. This procedure might include techniques such as handwritten notes. j) Data Integration The integration of behaviors must be based on a pooling of information from assessors or through a statistical integration process validated in accordance with professionally accepted standards. interview techniques and understanding behaviour. or behavioral checklists. Audio and video recordings of behavior may be made and analyzed at a later date. Results can also be integrated with human resource planning data to provide additional information concerning number of people with particular skills needed to meet future needs. b) Early Identification of Personnel: The underlying rationale here is the need for the organization to optimise talent as soon as possible. assessors should report information derived from the assessment techniques but should not report information irrelevant to the purpose of the assessment process. It is suggested that assessors must prepare the report immediately after the assessment is over otherwise they are likely to forget the details.

It was seen as a rather formal process where the individuals being assessed had the results fed back to them in the context of a simple yes/no selection decision. recently we have seen a definite shift in thinking away from this traditional view of an assessment centre to one which stresses the developmental aspect of assessment. decision making and initiative. problem solving. namely. Various combinations of these exercises and sometimes other assessment methods like psychometric testing and interviews are used to assess particular competencies in individuals. In some cases we can even find assessment centres that are so developmental in their approach that most of the assessment work done is carried out by the participants themselves and the major function of the centre is to provide the participants with feedback that is as much developmental as judgmental in nature. that it is behaviour that is being observed and measured. leadership. While assessment centres were once used purely for selection and have 3 9 c) d) . It is easier to think about assessment centres as being equally to do with selection and development because a degree of assessment goes on in both. it is impossible to draw a line between assessment and development centres because all centres. adaptability and flexibility. planning and organising. Most assessment centres involve at least some development and most development centres involve at least some assessment. The theory behind this is that if one wishes to predict future job performance then the best way of doing this is to get the individual to carry out a set of tasks which accurately sample those required in the job. one for selection and one for development. However. This represents a significant departure from many traditional selection approaches which rely on the observer or selector attempting to infer personal characteristics from behaviour based upon subjective judgment and usually precious little evidence. Increasingly assessment centres are stressing a collaborative approach which involves the individual actively participating in the process rather than being a passive recipient of it. motivation.e. a) b) they both involve assessment and it is only the end use of the information obtained which is different i. communication. Potential Appraisal. One might ask the question ‘Why group assessment and development centres together if they have different purposes?’ The answer to that question is threefold. be they for assessment or development naturally lie somewhere on a continuum somewhere between the two extremes. This means that it is very rare to find a centre devoted to pure assessment or pure development. Assessment centres typically involve the participants completing a range of exercises which simulate the activities carried out in the target job. The fact that a set of exercises is used demonstrates one crucial characteristic of an assessment centre. Assessment Centres and Career and Succession Planning Differences between Assessment and Development Centres The type of centre can vary between the traditional assessment centre used purely for selection to the more modern development centre which involves self-assessment and whose primary purpose is development.Assessment Centres and Development Centres Traditionally an assessment centre consisted of a suite of exercises designed to assess a set of personal characteristics. Development Centres grew out of a liberalization of thinking about assessment centres. This approach is rendered unfair and inaccurate by the subjective whims and biases of the selector and in many cases produces a selection decision based on a freewheeling social interaction after which a decision was made as whether the individual’s ‘face fit’ with the organisation. The particular competencies used will depend upon the target job but one should also learn such competencies such as relating to people. A consequence of this is that today it is very rare to come across an assessment centre which does not have at least some developmental aspect to it. resistance to stress.

Assessment Centres give feedback at a later date while Development Centres involve the individual having control over the information obtained.Performance Management and Potential Assessment evolved to have a more developmental flavour. While one hears centres being called assessment or development centres assessment goes on in both and to that extent they are both assessment centres. Another problem with using the assessment . The implicit assumption is that an invididual can make a different in his destiny over time and can adjust in ways that would help him to enhance and optimize the potential for his own career development. Assessment Centres have very little pre-centre briefing while Development Centres have a substantial pre-centre briefing. as a person grows older.development dichotomy is that at the very least it causes us to infer that little or no assessment goes in development centres. Career planning is important because it would help the individual to explore. The end result of this is that it is not possible to talk about assessment or development centres in any but the most general terms. A number of differences between assessment and development centres exist are presented below: a) b) c) d) e) f) g) h) Assessment centres have a pass/fail criteria while Development centres do not have a pass/fail criteria Assessment centres are geared towards filing a job vacancy while Development centres are geared towards developing the individual Assessment Centres address an immediate organisational need while Development Centres address a longer term need Assessment Centres have fewer assessors and more participants while Development Centres have a 1:1 ratio of assessor to participant Assessment Centres involve line managers as assessors while Development Centres do not have line managers as assessors Assessment Centres have less emphasis placed on self-assessment while Development Centres have a greater emphasis placed on self-assessment Assessment Centres focus on what the candidate can do now while Development Centres focus on potential Assessment Centres are geared to meet the needs of the organisation while Development Centres are geared to meet needs of the individual as well as the organization.4 CAREER PLANNING Career is viewed as a sequence of position occupied by a person during the course of his lifetime. Assessment Centres feedback and follow up while Development Centres give feedback immediately. Assessment Centres tend to be used with external candidates while Development Centres tend to be used with internal candidates. the language used to describe them has not. Career may also be viewed as amalgam of changes in value. i) j) k) l) m) n) 10. choose and strive to derive satisfaction with one’s career object. Assessment Centres assign the role of judge to assessors while Development Centres assign the role of facilitator to assessors. 4 0 . attitude and motivation that occur. Assessment Centres place emphasis on selection with little or no developmental while Development Centres place emphasis on developmental feedback and follow up with little or no selection function.

This support from organisation includes: a) b) c) d) Clearly communicating the organisation’s goals and future strategies. On the part of employees. The successful career will be built on maintaining flexibility and keeping skills and knowledge up to date. They want to create or build something that is entirely their own. They are briefly presented below: a) Managerial Competence: The career goal of managers is to develop qualities of interpersonal. considers alternative career opportunities. they should manage their own careers like entrepreneurs managing a small business. They are particularly found to play a significant role amongst younger generation choosing professions. These individuals do not seek managerial positions. People using this anchor want to manage people. 4 1 b) c) d) .The process by which individuals plan their life’s work is referred to as career planning. Creating growth opportunities Offering financial assistance Providing the time for employees to learn. They are called career anchors because they become the basis for making career choices. Functional Competence: The anchor for technicians is the continuous development of technical talent. They often see themselves tied to a particular organization or geographical location. a person evaluates his or her own abilities and interests. and plans practical developmental activities. and their willingness to be trained and developed for higher positions It ensures better use of human resources through more satisfied and productive employees It ensures more stable workforce by reducing labour turnover and absenteeism It utilizes the managerial talent available at all levels within the organisation It improves employee morale and motivation by matching skills to job requirements and by providing job opportunities for promotion It ensures that promising persons get experience that will equip them to reach responsibility for which they are capable It provides guidance and encouragement to employees to fulfill their potential It helps in achieving higher productivity and organizational development Potential Appraisal. Career anchors Some recent evidence suggests that six different factors account for the way people select and prepare for a career. and emotional competence. Creativity: Creative individuals are somewhat entrepreneurial in their attitude. analytical. They should think of themselves as self-employed. They should freely participate in career planning activities and must try to get as much as possible out of the opportunities provided. Security: The anchor for security-conscious individuals is to stabilize their career situations. Career planning seeks to achieve the following objectives: a) b) c) d) e) f) g) h) i) It attracts and retains the right persons in the organisation It maps out careers of employees suitable to their ability. establishes career goals. abilities and knowledge. Assessment Centres and Career and Succession Planning The essence of a progressive career development programme is built on providing support for employees to continually add to their skills. Through career planning.

f) Career Planning Process It is obvious from the foregoing analysis that individuals differ a great deal in term of their career orientation . If the conflict is allowed to persist.Many individuals may not be aware of their own career progression path as such information may be confined to only select group of managers. new rewards. Analyse the characteristic of the hopes and aspirations of different categories of employee including the identification of their career anchor must be done through the objective assignment. it will be necessary to compare and identify specific area of match and mismatch for different categories of employee.They might even choose the option of leaving the organization.Performance Management and Potential Assessment e) Autonomy and independence: The career anchor for independent people is a desire to be free from organizational constraints. Career planning thus involves matching of rewards and incentives offered by the career path and career structure with hope and aspiration of employees regarding their own concept of progression. The difference between what the employees look for in their career progression and what career growth opportunities the organization is able to provide. the organization is not able to optimally utilize the potential contribution of its employee towards the achievement of its goal. and may not be aware of the aspiration and career anchor . Most organization assume the career aspiration of individual employee which need not be in tune with the reality . gives rise to situation of potential conflict. priorities. and aspiration. individual difference in values.The career system available in organizational depend on their growth potential. Organization also on the other hand differ in term of career path and opportunities that they can provide given the reality of their internal and external environments . goals and priorities. change in the employees hopes and aspirations by creating new needs. A general approach to career planning would involve the following steps: a) Analysis of the characteristic of the reward and incentives offered by the prevailing career system needs to be done and made know to employee . On the basis of analysis. In either case. new incentives. Some of the strategies adopted by several organization include the following : l b) c) d) change in the career system by creating new career path . by providing challenge through job redesign opportunities for lateral movement and the like. Alternative strategies for dealing with mismatch will have to be formulated. the employee will experience dissatisfaction and withdraw from being actively engaged in the productive pursuit . They value autonomy and want to be their own boss and work at their own pace. This also includes an entrepreneurial spirit. l 4 2 . the life cycle stage. Mechanism for identifying congruence between individual career aspiration and organizational career system must develop so as to enable the organization to discuss cases of mismatch or incongruence. These individuals often readily accept change and therefore are very adaptable.The individual may not have a clear idea of their short and long term career and life goals . new goals. Technological competence: There is a natural affinity for technology and a desire to work with technology whenever possible. The possibility of conflict between the individual-organization objective calls for career planning efforts which can help identify areas of conflict and initiate such action as necessary to resolve the conflict . new aspiration or by helping the employees to scale down goal and aspiration that are unrealistic or unattainable for one reason or the other.The career orientation is influenced by the preference for a particular career anchor. goals.

Potential Appraisal. Succession planning provides managers and supervisors a step-by-step methodology to utilize after workforce planning initiatives have identified the critical required job needs in their organization. which spells out the particular steps to be followed to achieve the mission. when qualified and competent people are not available internally. Assessment Centres and Career and Succession Planning l e) Reviewing Career Plans a periodic review of career plans is necessary to know whether the plans are contributing to the effective utilization of human resources by matching employee objectives to job needs. Therefore organization needs to encourage the growth and development with its employee.5 SUCCESSION PLANNING Succession planning is an ongoing process that identifies necessary competencies. and/or department. goals. the organization may find it necessary to search for talent from outside in certain circumstance. in order to ensure a continuity of leadership for all critical positions. Some of these reasons are given below: l l l l l Superannuation: Employees retiring because they reach a certain age. Creation of New Position: Employees getting placed in new positions at the same level. In some professionally run large organizations. division. A framework of career planning process aimed at integrating individual and organizational needs is presented. develop. and develop a talent pool of 4 3 . and enables managers and supervisors to assess. negotiation or other devices.l Seek new basis of integration.The purpose of succession planning is to identify and develop people to replace current incumbents in key position for a variety of reasons.. They should look inward to identify potential and make effort to groom people to higher and varied responsibilities. Resignation: Employees leaving their current job to join a new job Promotion: Employees moving upward in the hierarchy of the organization. It is a plan that managers can follow. compromise or other form of mutual change on the part of employee and organizational through problem solving. For example. then works to assess. managers and supervisor in every department are usually asked to identify three or four best candidate to replace them in their jobs should the need arise. Succession planning is a specific strategy. Complete dependence on internal source may cause stagnation for the organization. and initiatives identified in workforce planning. Succession by people from within gives a shared feeling among employee that they can grow as the organization grows. Succession can be from within or from outside the organization. Succession planning is pro-active and future focused. what changes are likely to take place and what skills are needed to adapt to the changing needs of the organization. and retain a talent pool of employees. However. implement. Similarly complete dependence on outside talent may cause stagnation in the career prospects of the individual within the organization which may in turn generate a sense of frustration. Diversification: Employees being redeployed to new activities. evaluate. and customize to meet the needs of their organisation. 10. Review will also indicate to employee in which direction the organizations is moving. The continued existence of an organization over time require a succession of persons to fill key position . when it is planning to launch a major expansion or diversification programmes requiring new ideas etc.

It is a tool to meet the necessary staffing needs of an organization/department. P. Tripathi. J. New Delhi.6 SUMMARY Continuous self and staff development are essential to continuous performance improvement. Sultan Chand. what are the differences? Write a comprehensive note on succession planning citing suitable examples. 10. Is assessment centre same with development centre? If not. 2003. Rustom: “The Human Side of Management”. This requires planning of career progression and setting career goals. (1990).).7 SELF ASSESSMENT QUESTIONS 1) 2) 3) 4) Explain the concept of ‘potential appraisal’ with illustrations.2003. purpose and objectives. but also focusing on the quality of the candidates.8 FURTHER READINGS Aswathappa. Himalaya Publishing house. (1994) Progressive Corporation.: “Human Resource Management”(3rd Ed.: Personnel Administration in India.B. Arun and Saiyadain. Tata McGrawHill. C. New Delhi.: “Human Resource and Personnel Management”. Mirza S. V. through addressing competencies and skill gaps. This can be achieved by identifying potentialities of employees with the help of potential appraisal and various methods involved in it viz. 1983. Gupta. Ghosh. New Delhi.C. Philip. Tata McGraw-Hill. New Delhi. New Delhi. McGraw Hill. Sultan Chand & Sons. 4 4 . K. What is career planning? Discuss its needs.: “Personnel Management”. U. P. 10. assessment centre.. 10. Micheal. Saiyadain.(1995) Richard Irwin. Davar. “Human Resource Management” (1997). New Delhi.Performance Management and Potential Assessment individuals who are willing and able to fill positions when needed. One’s own self-development needs to be related to your personal strengths and weaknesses and to the career aspirations. Jucius Micheal. (1999) Himalaya Publishing House. Mirza S. taking not only quantity of available candidates into consideration.: “Personnel Management” (1996).: “Human Resource Management and Human Relations” (1998). Monappa. Tom: “Making Performance Appraisal Work”.P.K.: “Human Resource Development”.

4 11. more significant is the staff function (also called advisory role).1 INTRODUCTION There seems to be a general notion that one cannot really measure what the HR function does. Data to evaluate performance and its relationship with HR practices comes from several sources. of course. benchmarking. These are: 4 5 . HR can position itself as a partner in an organization.UNIT 11 HR MEASUREMENT AND AUDIT Objectives After completion of this unit. Further.6 11. not of true value. To demonstrate to the rest of the organization that the HR unit is a partner with a positive influence on the bottom line of the business. While the line function refers basically to managing the HR department. That notion is. HR information systems and HR research. it’s contribution to the overall objectives of organisation cannot be denied. those practices enhanced profitability and market value of the organisations studied. Then the HR unit must communicate that information to the rest of the organization. HR accounting. These are traditionally being called as line and staff functions. Even though defining and measuring HR effectiveness is not as straightforward as with some areas. but only by demonstrating real links between what HR activities contribute to organizational results. HR professionals must be prepared to measure the results of HR activities.2 11. HR function like marketing. legal. managers. you should be able to: l HR Measurement and Audit understand the concepts of Human Resource (HR) audit.8 11. HR managers and their performance are subject to audit for these functions. and employees are the main “customers” for HR services. the organization may suffer in achieving its objectives. too expensive.1 11.5 11. HR managers perform two major functions. discuss the benefits and scope of these concepts.9 Introduction Human Resource (HR) Audit Benchmarking Human Resource (HR) Accounting Human Resource Information System (HRIS) Human Resource (HR) Research Summary Self Assessment Questions Further Readings 11.3 11. If these services are lacking.7 11. or of poor quality. Other departments. or finance-must be evaluated based on it adds to the organization. but five systems are most often used to measure HR effectiveness. and describe the processes involved. Studies in India and abroad have found relationship between the best HR practices and reduced turnover and increased employee productivity. l l Structure 11.

especially in the geographically scattered and decentralized HR function of large organisations. HR information systems. The assistance will depend on the range of services deemed suitable in a situational context.Performance Management and Potential Assessment a) b) c) d) e) HR audit. Finally an evaluation will serve the purpose of identifying the gap between the objectives and results. The concept of HR audit is similar to the financial audit –a process to evaluate and a take action where necessary. may be defined as the examination and evaluation of policies. In any organization activities of various departments are constantly reviewed to ascertain if they are moving in the desired direction and to decide what changes should be made in view of altered environment condition. Hence auditing which is the part of control function. procedure and practices to determine the effectiveness of HR management in an organization. yet the concern are manifestly the same. Additionally a check is needed to ensure that management objectives are understood in same manner by all involved. An audit reminds member of HR department and others its contribution. it finds problems and ensures compliance with a variety of laws and 4 6 .the same cannot be said about the personal function . Extending the definition to the field of HR management auditing consist of the analysis and evaluation of policies. These generally involve maintenance aspects.2 HUMAN RESOURCE (HR) AUDIT Though auditing of other function of an organization is universally emphasized . creating a more professional image of the department among manager and specialist. Firstly this service needs to be reviewed. Auditing is an evaluation of the system in order to enable management to take decision regarding the efficient running of an enterprise. The CEO will want to know how the various units are functioning and how far they have been able to meet policies and guidelines agreed upon. However now that the role of HR management has reached a degree of maturity a systematic and comprehensive audit of its function is called for. Benefits of HR Audit Several benefits associated with HR audit are listed below. Various studies indicate that a comprehensive appraisal of the HR function is under taken by only a small percentage of companies. and HR research. It provides feed back about the HR function to operating managers and HR specialist. the HR manager himself will be concerned about reviewing the activity of his department. procedures and practices in all phase of business to achieve the most effective administration of the organization. The audit helps clarify the department’s role and leads to greater uniformity. Perhaps most important. long range plan and also assumption about the future. The audit may include one division or entire company. A human resource audit evaluate the HR activities in an organization with the intent of improving those activities . In short audit is an overall quality control check on HR activities in a division or a company supports the organization strategy. 11. In addition to the top management’s need for audit. HR accounting . though many of them do conduct appraisal of certain aspects of their personnel activities. Benchmarking. It also provides feedback on how well managers are meeting their HR duties. The frequency and indicator may differ.

Creates increased acceptance of needed change in the HR department. And since it is service department. 3) Compensation Function a) c) e) Linkage between wages and productivity Employee cost in term of turnover Value of collective bargaining and fringe benefit programmes to the organisation.accidents. 4 7 b) Impact of money on work motivation of employee d) Effect of inflation and technology on wages label and productivity 4) Maintenance Function a) Absenteeism. Scope of HR Audit In order to conduct HR audit. HR Measurement and Audit Besides ensuring compliance. If the comments of manager are acted on. grievance disciplines. HR manager requires considerable amount of data . these actions may improve its contribution to organizational objectives. turnover . the department will be seen as being more responsive to their needs. To conduct meaningful HR audit information on following human resource functions is necessary: 1) Procurement Function a) c) e) f) 2) In inventory present and future needs for manpower Possible change affecting manpower Valid measure for testing and selection Cost of requirement and replacement b) Reliable performance standard d) Location and matching of required and available skills Development Function a) c) Valid measure of employee performance Linkage between individual aspirations and organizational needs. Reduces human resource cost through more effective HR procedure. Finds critical HR problems. man-days lost and . the audit can improve the department’s image and contribution to the company.strategic plans in an organization. Encourages greater responsibility and professionalism among member of the HR department. b) Cost benefit calculation on training and development d) Career and succession planning. a) b) c) d) e) f) g) h) i) j) Identifies the contribution of HR department to the organization Improves the professional image of the HR department. Stimulates uniformity of HR policies and practices. Requires thorough review of HR department’s information system. Ensures timely compliance with legal requirements. Clarifies the HR department’s duties and responsibilities. Operating managers may have more respect for the department when an audit team seeks their view.

Through the use of audits. and the final part is for the HR managers. 5) Integration Function e) f) Communication and leadership climate in the company Adoption to environmental change g) Causes of changes in productivity level h) Impact of change in technology and market. And the mere existence of corporate audit team encourages compliance and self audits by the regional offices between visits. The persons in charge of auditing should examine the effectiveness of the HR function by raising the following issues: a) b) c) d) e) f) g) Identify who is responsible for each activity. and satisfying employee needs. one audit team observed that many jobs did not have qualified replacements. Examples of duties include interviewing applicants. One part is for line managers. motivating workers. For line managers. Very large organisations have audit teams similar to those used to conduct financial audits. Poor management practices are revealed in the report along with the recommendations. As a result. Sample the records in the HR information system to learn if the policies and procedures are being followed correctly. An audit report contains several sections. small firms use ad hoc arrangements that often limit the evaluation to selected areas. A recognition of both good and bad practices is more balanced and encourages wider acceptance of the report. the organisation maintains consistency in its practices even though there are several offices in different locations. the report summarises their HR objectives. policies. For example. Audit Reports The audit report is a comprehensive description of HR activities that includes both commendations for effective practices and recommendations for improving practices that are less effective. responsibilities and duties. c) Causes and cost of employee separation d) Incentives for voluntary separation. training. training employees. The report also identifies people’s problems. policies and procedures Follow up on the action plan to see if it solved the problems found through the audit. compensation. Determine the objectives sought by each activity Review the policies and procedures used to achieve those objectives. audits are time-consuming. Prepare a report commending proper objectives. These teams are especially useful when the department is decentralized into regional or field offices. and other activities also need feedback. Violations of policies and employee relations laws are highlighted. and procedures. The audit report they receive isolates areas of good and poor performance within their functions. Obviously. The specialists who handle employment. This information was given to the manager 4 8 . Develop an action plan to correct errors in objectives.Performance Management and Potential Assessment other indicator of organizational health b) Environmental standards for physical and mental health of the employees. evaluating performance. if necessary. another is for managers of specific HR functions.

A review of the departments’ objectives and plans to achieve them. Recommendations for needed changes and the priority for their implementation. With knowledge of the department’s current performance. may result from a variety of causes. a) b) c) d) e) Results including both accomplishment and problem regarded as effect of current management. or assess the impact of environment change. its priorities in value. Finally. In addition. political and social. Policies both explicit and implicit. are isolated from the totality of the organization and its human resource . policies. the manager can make long term plans to upgrade crucial activities. how effective is the current industrial relation strategy and practice. indicators. To what extent do the above factors help develop the human resource potential. Perhaps the most important. These plans identify new goals for the department. The report may also provide other feedback such as attitudes of operating managers about the HR specialists’ efforts. HR Measurement and Audit With the information contained in the audit report. style of management. Philosophy of management. The audit process thus consist of identifying indexes. which serve as standards for future audit teams. Substantive issue such as organization pattern. policies and continuing problems. the manager gets feedback about: a) b) c) d) Attitudes of operating managers and employees about the department’s benefits and services. High absence rates. on the industrial relation system and consequently. HR problems and their implications.and examining the variation in time frame in comparison with a similar previous corresponding period . for example. statistical ratio and gross number in some cases . the HR manager can take a broad view of the function. appropriate structure and manpower implication or the centralized Vs decentralized system are not dealt with in depth. what modifications are envisaged to cope with emerging pattern? These are the some of the wider issues which must be dealt with as they will have an impact on effective management of human resources. Programmes including the detailed practices and procedure of which they are composed. philosophy and theory . and look upon procedure only. goals and objectives. Audit Process Evaluation by audit results is usually superficial because the interpretation of such indicators is generally limited. the audit serves as the map for future efforts and a reference point for future audits. One possible approach to start the thinking process in relation to the HR function is to ask the following question :4 9 . A summary statement is then prepared and sent to top management for information and action.of training and development along with the recommendation for more programs to develop promising supervisors and managers. The HR manager’s report contains all the information given to both operating mangers and staff specialists. or emphasize apparent results. the manager can focus on those which have the greatest potential for improving the department’s contribution to the organisation. Subsequent research and practice have revealed that conventional audit have a limited focus.Policy on the depth of the audit must determine which of the following level is desired. The audit probe should be much deeper –apprising programmes. Instead of solving problems in a random manner. Theory or the assured relationship and plausible explanation they clarify and relate philosophies. Turnover may be low because unemployment is high.

....................... obtaining comparative data from other organisations and finally............... analyst.Performance Management and Potential Assessment a) b) c) d) e) What is the philosophy underlying the function? What principles of management are being followed in carrying it out? What policies have been established for this function? What procedures have been established? Are they in line with the company philosophy.. Manager will asses the performance of individual activities involved not just a business unit.. management.. Part of this process will involve regular analysis of performance against target e..............g.............................................................. ................................................................ However there are also more qualitative less tangible feature of performance which result on quality or satisfaction such as attitude towards customers............ ............3 BENCHMARKING A term now often used to describe performance assessment is benchmarking which seeks to asses the competences of an organization against “best in class” wherever that is to be found...... Performance monitoring is continuous process........... policies management principle and philosophy of each function consistent with those of other related functions? Such an investigative process calls for imagination in piecing to gather data from company record and discussion with employees..... 5 0 ......... .......... financial performance budget....... probing and problem-solving approach–the role normally played by an external consultant to diagnose the state of an organization’s health...If the personnel manager is doing the audit he should adopt a fact –finding.................. Those with an interest in an organization’s business (shareholder...........Benchmarking should include quantitative and qualitative measure of performance and its emphasize should be on continuous quality improvement............................................................................. Assessment of these features is more difficult and it can only be done by direct observation or surveying user .......... correlating on variable with another to understand the interrelatedness and thus arriving at a broader and deeper understanding .... 11.......... Management will be interested in far more then overall organizational performance....... This is the only way to discern whether performance is in line with expectations.. Internal Benchmarking Most organizations monitor their own performance in order to identify change in key business activities over time.. policies and principle? Are the procedure.. This may mean looking at the performance of the organization as a whole or comparing the performance of difficult individual teams or business unit with each other.................. using questionnaires to conduct surveys....... There are two kinds of Benchmarking – Internal Benchmarking and External Benchmarking.... Often this taken to mean only measures of output performance which can be defined in quantitative term (comparison of financial performance.....................................................) will wish to compare result over time in order to reveal trends in business performance...... production throughput)........... etc..... Activity A Collect few HR Audit Reports of your organisation or in an organisation where HR Audit is carried out and write down your comments on them regarding their relevance... ....................... key financial ratio and other measure of output such as market share........ sales and production achievement against target.........

most organization will wish to asses their own performance relatives to industry norm. They could do this with reference to industry averages or the time performance of best performing organization. for example the employee cost or to research and development expenditure. HR benchmarking compares specific measures of performance against data on those measures in other “best practices” organizations. Like general benchmarking. It has following 10 steps which are to be followed according to the sequence in which they are presented: 1) 2) 3) 4) 5) 6) 7) 8) 9) Identify what is to be benchmarked. HR benchmarking is extremely important. For example. Perhaps a good example of how to conduct benchmarking exercise comes from Xerox Company. 5 1 .There are also problems of finding comparable organizations to bench mark against. They provide a basis for reviewing existing HR practices and developing new practices. Determine data collection methods and collect data. Determine current performance levels. Project future performance levels. 10) Recalibrate benchmarks. Identify comparable companies. Establish functional goals. When information on HR performance has been gathered. HR professionals interested in benchmarking try to locate organizations that do certain activities particularly well and thus become the “benchmarks. which is a model or measure against which something is compared to determine its performance level.” HR Benchmarking is useful for following reasons: a) b) c) d) An organisation can identify how its HR practices compare with the best practices. Organizations need to decide: a) b) c) What activities or other dimension of the organization should be compared with others? Who the other organizations should be? How information on other organizations can be obtained? HR Measurement and Audit In reality external benchmarking can be time consuming and be hampered by the difficulty of obtaining relevant information . Implement action plans and monitor progress. Obviously the scope of cross industry comparison will be more limited but could relate. it is meaningless to know that organizational turnover rate is 75% if the turnover rates at comparable organizations are unknown.External Benchmarking This involves comparing performance with that of other organizations. it must be compared to a standard. Communicate benchmark results and gain acceptance. It helps organisations learn what type of HR practices work and they can be successfully implemented. Develop action plans. However a danger in relying solely in industry norm analysis is that industry may itself perform badly. Nevertheless. They also help managers to establish a strategy and set priorities for HR practices.

......... The information collected needs to be considered in terms of the context of the companies.. Both qualitative and quantitative data should be collected because descriptions of programmmes and how they operate are as valuable as knowing how best practices contributed to the bottom line......................Performance Management and Potential Assessment Some of the common benchmarked performance measures in HR management are: a) b) c) d) Total compensation as a percentage of net income before taxes Per cent of management positions filled internally Rupee sales per employee Benefits as a percentage of payroll cost Managers need to consider several things when benchmarking............. Benchmarking will not provide “right” answer..................................................... There are two major reasons why human resource accounting has been receiving so much attention in the recent years..................... Thus human resource is a very valuable asset for the organization which aims to progress in all directions amidst heavy competition.... They attached the failure of conventional accounting practice to value the human resource of an organisation along with material resources..... Inspite of vast physical resources with latest technology.. The real efforts for viewing the human resource as an asset was started by behavioural scientists from 1960 onwards who tried to develop appropriate methodology and procedure for finding out the cost and value of the people in the organisation............................. To ensure the broadest information possible............. Activity B List out the benchmarking activities that are being carried out in your organisation or an organisation you are familiar with... Managers must gather information about internal processes to serve as a comparison for best practices.....4 HUMAN RESOURCE (HR) ACCOUNTING Human resource is an important asset in the organisation whose value goes on increasing with its right placement.... upper-level management needs to be committed to the project. application and development in the organisation........ It is also important to clearly identify the purpose of benchmarking and the practice to be benchmarked............... ...... 5 2 .............. 11.... examining recruitment practices also requires consideration on company’s emphasis on use of the company’s staffing strategy............ and the value of customer goodwill... organisations have not made any effort to assign any monetary value to this in their accounting practice till the recent past.. Finally.. an organisation may quite often find itself in financial crisis if it does not have the right persons to manage its affairs..... ..... .......... It is also important not to view HR practices in isolation from each other............ ....... human resources were identified as the value of production capacity of an organisation............................. use of the information gathered from benchmarking needs to be considered in the broader framework of organisational change............. managers should be careful to gather data from the companies both within and outside their industry................ and as with most quality approaches.................. For example....... As a result.......... Benchmarking may actually limit a company’s performance if the goal is only to learn and copy what competitors have done and not to consider various options to improve their process.......... benchmarking is one part of an improvement process..... Though the concept of Human Resource Accounting is very old................. Hence......................................................................................................................................

developing and maintaining human resources in order to achieve cost effective organisational objectives. It helps the organisation in decision making in the following areas: b) c) d) e) f) Direct Recruitment vs.e. It involves measuring costs incurred by private firms and public sector units to recruit. The corporate plan aiming for expansion. Human resource accounting is the process of identifying and measuring data about human resources and communicating this information to the interested parties. It is the measurement of the cost and value of people to the organisation. HR accounting suggests modification of the entire corporate plan. To monitor effectively the use of human resources by the management. Conventional accounting of human resources consists of taking note of all expenses of human capital formation which does not seem either to be correct or meeting the actual needs. decision on reallocation of plants closing down existing units and developing overseas subsidiaries etc. To aid in the development of management principles. means accounting for people as the organisational resources. Traditional framework of accounting is in the process to include a much broader set of measurement than was possible in the past. In all. select. whether such assets are conserved. in simple terms. retention. Advantages of HR Accounting Human Resource Planning anticipates not only the required kind and number of employees but also determines the action plan. retention. changes in technological growth etc. It offsets uncertainty and change. The main objectives of HR Accounting system are as follows: a) To furnish cost value information for making proper and effective management decisions about acquiring. and proper decision making for the future by classifying financial consequences of various practices. diversification. transfer vs. It provides scope for advancement and development of employees by effective training and development. HR Measurement and Audit Objectives of HR Accounting The objective of HRA is not merely the recognition of the value of all resources used by the organisation. 5 3 b) c) . as it enables the organisation to have the right person for the right job at the right time and place. but it also includes the management of human resource which will ultimately enhance the quantity and quality of goods and services. train and develop employees and judge their economic value to the organisation.a) b) c) There is genuine need for reliable and complete management of human resources. This information does not get included in management information systems. To have an analysis of the human assets i. has to be worked out with the availability of human resources for such placements or key positions. retrenchment vs. Human resource accounting. it facilitates valuation of human resources recording the valuation in the books of account and disclosure of the information in the financial statement. depleted or appreciated. People are the most important assets of an organisation and yet the value of this asset does not appear in financial statements. allocating. impact on budgetary controls of human relations and organisational behaviour. If such manpower is not likely to be available. promotion. The major benefits of HR accounting are: a) It checks the corporate plan of the organisation.

There is a constant fear of the opposition from the trade unions that placing a value on employees would make them claim rewards and compensation based on such valuation. retained and utilized. their value to be included in the financial statement is the question yet to be classified on which there is no consensus in the accounting profession. Some of these limitations are given below: a) b) c) There is no proper clear-cut and specific procedure or guidelines for finding cost and value of human resources of an organisation. understand faster and show efficiency in training programmes as compared to others. interview techniques to be adopted in the selection process based on the level of skill. As human resources are not capable of being owned. Inspite of its significance and necessity. valuing them under uncertainty in future would be unrealistic There is a fear that HR accounting may dehumanise and manipulate employees. For example an employee with a comparatively low value may feel discouraged and develop a complex which will affect his competency to work. If the period of existence of human resource is uncertain. HR accounting development and application in different industries and organisations has not fully grown. qualifications and experience of future human resources. it helps to take steps to improve employee contribution in the form of increased productivity.Performance Management and Potential Assessment d) e) f) g) It helps individual employee to aspire for promotion and better benefits. ability and motivation in the same organisation as well as across organisations. which coupled with special knowledge and ability assist HR management in the valuation of personnel in financial terms. It provides different methods of testing to be used. aptitude and attitude of human resources and accordingly change the techniques of interpersonal management h) Limitations of HR Accounting Human Resource Accounting is the term used to describe the accounting methods. either to keep or dispense with their services or to provide training. unlike the physical assets. There are many limitations which make the management reluctant to introduce HR accounting in their organisations. It can foresee the change in value. system and techniques. d) e) f) g) h) i) 5 4 11. In what form and manner. There is no universally accepted method of human resource valuation. It aims to see that the human involvement in the organisation is not wasted and brings high returns to the organisation. The much needed empirical evidence is yet to be found to support the hypothesis that HR accounting as a tool of the management facilitates better and effective management of human resources.5 HUMAN RESOURCE INFORMATION SYSTEM (HRIS) . There are some who produce more. there is a problem for the management to treat them as assets in the strict sense. HR accounting facilitates decision making about the personnel. It is based on the assumption that there is great difference among the employees in their knowledge. tax laws do not recognize human beings as assets.

and distribute information related to the company’s human resources. A human resource Information system can be as large or as small as is necessary and may contain one or tow modules or upto twenty or so. store. administering payroll. analyze. d) e) f) g) h) Uses of HRIS Human resource information system refers to the system of gathering. complex. new advances in microchips have made it possible to store large quantities of data on personnel computers and to perform statistical analyses that were once only possible with large mainframe computers. retrieve. and time consuming as the addition or upgrading of an HRIS requires careful analysis and planning. recording and dismantling the information required for efficient and 5 5 .Improvements in Technology relating to microcomputers and software have also had a major impact on the use of information for managing human resources. perquisite deduction for provident fund etc. Appraisal Information: It deals with the performance appraisal and merit rating information which serves as input for promotion. allowance. Training Information: It provides information for designing course material. general requirement and training requirement data. increment and secession and career planning etc. an HRIS can be used to support strategic decision making. A great many decisions need to be made in the course of adopting and implementing an HRIS. or to support daily operating concerns. classifying. career planning. Health Information System: This subsystem provides information for maintenance of health related activities of the employees. to evaluate programs or policies. Personnel Information: It includes employee information such as transfer monitoring and increment and promotion details. a) b) c) Recruitment Information: It includes the placement data bank advertisement module. HR Measurement and Audit A computerized HRIS is an information system that makes use of computer and monitors control and influences the movement of human being from the time they indicate their intention to join an organization till they separate from it after joining . Any project as potentially expensive. to avoid litigation. It consists of the following sub-system. Data on compensation pattern of competitor is also included in it. processing. Payroll System: It consists of information concerning wages. Traditionally computers had been used in human resources only for compensation and benefits-for example. succession planning and input for skill development. However. salaries incentives. From the manager’s perspective. In adopting a HRIS following issues need to be addressed: a) b) c) d) Careful need assessment What type and size of HRIS should be adopted Whether to develop software or buy and use off the shelf software Should the HRIS be implemented in total or in stages. Manpower Planning Information: It seeks to provide information that could assist human resource mobilization. Personnel Statistics System: It is a bank of historic and current data used for various type of analyst. Hundreds of HRIS software packages are being marketed for both mainframe and microcomputers. manipulate. A Human Resource Information System (HRIS) is a system used to acquire. arrange for need base training and cost analysis of training etc. The specific needs of the organization should dictate the type of human resource Information system chosen.

If information is stored in a multiple location cost and inaccuracy will increase. With sophisticated software. information system has been limited to payroll preparation. A centrally available data can become useful for taking timely decisions. . Organizations have to comply with several laws of the land. job status and work history report of new hires. A computerized information system would store and retrieve data quickly and correctly enabling the organization to comply with statutory requirements. it becomes necessary to develop employee database for taking personnel issues. Necessary flexibility for adaptation to changes taking place in the environment can be built into mechanized information system. a) b) Organizations that employ a very large number of people. Implementation of training programmes based on knowledge of organizational needs. The system should be oriented towards decision making rather then towards record keeping. training. performance appraisal etc. employer record and file can be integrated and retrieved for cross-referencing and forecasting. computer based information system can be used in almost all the functions of human resource management. Ability to respond to ever changing statutory and other environment Status for the human resource functions due to its capability for strategic planning with the total organization. A sound HRIS can offer the following advantages: a) b) c) d) e) f) g) h) i) j) Clear definitions of goal. termination and insurance payment. making feasibility study and submission of the report. Need for such a system arises due to several factor. Designing HRIS The type or range of HRIS depend on the nature and the size of the organization . need for government regulation and availability of software package etc. Availability of timely and accurate information about human assets. Modern day compensation package is complex consisting of many allowance and deductions etc. Individual development through linkage between performance reward and job training. Gradually however progressive companies have started computerized information system in the area of collective bargaining.Performance Management and Potential Assessment effective management of human resource in an organization. c) d) e) f) In the field of human resource management. Development of performance standard for the human resource division More meaningful career planning and counselling at all levels.preference of top management. High capability to quickly and effectively solve problems. Reduction in the amount and cost of stored human resource data. employee manual. In a geographically dispersed company every office requires timely and accurate information for manpower management. constraint affecting the system. The steps involved in the development of sound HRIS are given below: a) 5 6 Preliminary System Analysis: It involves definition of the problem specification of the objectives and operational needs. With the help of computerization personnel information system.

alternatives to meet the objectives are described and evaluated. It helps detect areas of needed improvement. System Monitoring and Evaluation: It involves measuring the performance of the system. the research team can compare actual results with stated objectives. System Testing and Implementation: The total HRIS. With these mathematical standards. But whether information is rigorous or not. the team may uncover errors while they are still minor. HR Measurement and Audit c) d) e) 11. MbO Approach: When an MbO approach is applied to the human resources area. There are two kinds of research – academic and applied. research seeks to improve the performance. the team can determine whether there is compliance with company policies and legal regulations. relying on sophisticated designs and statistics. Its subsystem and running of the system are tested and installed. Recommendation about the system is then made to the top management. Academic research seeks answers to contribute to the existing body of knowledge. The consultant or research findings may help diagnose the causes of problems. Statistical Approach: From existing records.b) System Design: At this stage the problem is described in details. a) Comparative Approach: The research team compares its organisation (or division) with another organisation (or division) to uncover areas of poor performance. analyzing the information and drawing conclusions for decision-making. Outside Authority Approach: The research team relies on the expertise of a consultant or published research findings as a standard against which activities or programs are evaluated. Application – oriented research efforts are called applied research. System Engineering: In this step a detail study of engineering component and their cost effectiveness is made. At times the research may be advanced. For evaluating the HR performance applied research is conducted. Through its fact –finding efforts. It’s necessary to solve properly the human problem in system design and control. Its continuous evaluation and modification. Compliance Approach: By sampling elements of the human resource information system. the research team looks for deviations from laws and company policies or procedures. There are following five kinds of applied research. Areas of poor performance can be detected and reported. Research is a systematic and scientific process of collecting information. For this purpose the organization should determine the potential contribution the HRIS can make to the strategic need and competitive posture of the company.6 HUMAN RESOURCE (HR) RESEARCH Research is also used to evaluate HR practices and performance. This approach commonly is used to compare the results of specific activities or programs. It is necessary to make the people throughout the organization aware of the advantageous of Human resource Information system. Broad engineering requirement of the chosen alternative are specified and its effect on people are estimated. the research team generates statistical standards against which activities and programs are evaluated. b) c) d) e) Research Method A number of research methods are available that can be chosen to suit the research 5 7 .

Also. changes should be made. It provides an opportunity to explain. Interview has several advantages. which can be very handy in reviewing HR policies. If the focus of research is to collect historical data perhaps the best source could be what is called as secondary source. Such interviews are conducted when the employees has decided to leave the organizations. suggestions by managers may reveal ways to provide them with better service. However one major disadvantage of questionnaire is that it assumes that respondents can read and write in language used in the questionnaire. It refers to a face-to-face discussion with managers and other employees to get information on a particular issue. l l Interviews of employees and managers offer research teams a powerful tool for collecting information about HR activities and identifying areas that need improvement. When the criticisms are valid. it may have to educate others in the organization by explaining the procedures that are being researched. b) Questionnaires: Since interviews are time –consuming and costly and often are limited to only a few people. c) Activity C a) List out which of the above mentioned HR measurement methods are carried out 5 8 . a) Interviews: Interview though time consuming provide very valuable information. journals and magazines. questionnaires may lead to more candid answers than do face-to-face interviews. But when the HR department is correct.Performance Management and Potential Assessment objectives. Likewise. l l It provides an opportunity to verify information Information relating to motivation and commitment can best be sought by interview. One useful variation of interview is Exit Interview. Such data can be extremely useful to examine trends in terms of growth or otherwise. Secondary Source of Data: Both interviews and questionnaires require human beings to provide information. Questionnaires generally consist of a list of statement / items to which respondent responds by either saying yes or no or showing varying degrees of agreement/disagreement. Besides being less costly questionnaires provide an opportunity to collect large amount of date in short period of time as they could be administered to a group. most research is conducted by using one or more of the following methods. Where data is available in published documents. house magazines. At this time the employees can very openly discuss problems issues and concerns because now he /she is not afraid of reprimanded by the authorities. minutes of the meetings and achieves etc. It is a two-way interaction and hence provides one opportunity to get in-depth information. Needless to say secondary source of data can be very handy method to collect specific information. Some extremely useful information can be gathered through exit interviews. Hence they can be given to only literate people. many HR departments use questionnaires to broaden the scope of their research. government reports. However. Criticisms and comments from interviews can help pinpoint perceptions and causes that can form the basis for departmental action. identifying training needs and examine behavioural problems that are not easily identifiable.

................ b) If none of those methods are being used then given responsibility..... which of the methods you will implement? Substantiate the answer by stating why and how you will implement...... .... Flippo Edwin B................... we have discussed five such HR measurement methods and their applications in organisations............. (1997): “Human Resource Management”................7 SUMMARY To sum up.. C............................. Process with the help of illustrations... Define ‘Benchmarking’. New Delhi.........in your organisation and discuss their relevance..S................. ................... (1984): “Personnel Management” New York................................... New Delhi........ Gupta.......... . Sultan Chand and Sons............................ ................................................................................. (1996): “Personnel Management”....................................... 11.... Write short notes on: a) HR Research b) HR Audit Reports c) Exit Interview 11....... ....................................................................................... HR Measurement and Audit 11.................................................B. K.................... 5 9 ................................. Galgotia Publishing Co................... Realising the importance of HR contribution in productivity and performance of organisations. Tata McGraw-Hill......... McGraw-Hill.................................................... few devises/methods are carried out to measure the HR functions contribution.............. R..................................... (1997): Personnel Management in Indian Enterprise... although there is a notion that measurement of HR function is difficult still there are ways to do it........ What are the types of benchmarking process? Discuss the concept of HR Information System and its applicability..8 SELF ASSESSMENT QUESTIONS 1) 2) 3) 4) Write a comprehensive note on HR Audit........ New Delhi.......... Delhi......................................................... ................. .......................................................... ... Monappa............................. In this unit...... Himalaya Publishing House Diwedi.................................................................... Arun and Saiyadain...9 FURTHER READINGS Aswathappa................. Mirza S... (1999): “Human Resource and Personnel Management”...........................

People cannot be taken for granted any more. This is mainly because organisations are realising that human assets are the most important of all assets. This emphasis can also be partly attributed to the new emerging values of humanism and humanisation. bring to surface. Moreover. Structure 12. and autonomy. describe sub-systems of HRD.10 Introduction The Concept of Human Resource Development The Need for HRD HRD Functions Human Resource Development Systems Principles in Designing HRD Systems Changing Boundaries of HRD Summary Self Assessment Questions Further Readings 12. you should be able to : l l l l l l Human Resource Development System understand the concept of Human Resource Development (HRD) system. This unit provides an understanding of the concept of HRD system. 5 . and discuss the changing boundaries of HRD.UNIT 12 HUMAN RESOURCE DEVELOPMENT SYSTEM Objectives After going through this unit. Human Resrouce Development (HRD) system aims at creating such a climate. The potential can be used only by creating a climate that can continuously identify.4 12. Appreciate the need for HRD. with the increased emphasis on creativity.9 12.2 THE CONCEPT OF HUMAN RESOURCE DEVELOPMENT Increasingly. more importance is being given to “people” in organisations.2 12. define HRD. related mechanisms and the changing boundaries of HRD. which people are increasingly acquiring and enjoying in the society. A number of HRD techniques have been developed in recent years to perform the above task based on certain principles. Unlike other resources.1 INTRODUCTION Development of human resources is essential for any organisation that would like to be dynamic and growth-oriented. human resources have rather unlimited potential capabilities. 12.3 12. list the various HRD systems. the expectations of people are fast changing.6 12.5 12.7 12. nurture and use the capabilities of people.1 12.8 12.

12. and the more an organisation invests in its human resources. Most of the attention. facilitate. the mechanisms may need to be examined periodically to see whether they are promoting or hindering the process. that they should also contribute to the development of people. in fact they can contribute a great deal to the achievement of organisational goals. the greater the return from the investment is likely to be. It is now being increasingly realised that people working in organisations are human beings. and that their contribution to the organisation is much more than that of any other resource being used. not merely a set of mechanisms and techniques. Another underlying concept of the system is that investment in human beings is necessary. and Develop an organisational culture in which supervisor-subordinate relationships. HRD is a process. and the possibility of substantial return. Organisations can become dynamic and grow only through the efforts and competencies of their human resources. motivation and expectations. Organisations can facilitate this process of development by planning for it. Develop their general capabilities as individuals and discover and exploit their own inner potentials for their own and/or organisational development purposes. It is also being realised that organisations have an obligation to the society. and necessary attention may be given to rationalise these. The concept of Human Resource System (HRS) assumes that human beings are a great asset to an organisation. In the context of a state or nation it would differ.Human Resource Development In the past. counselling. by allocating organisational resources for the purpose. motivation and pride of employees. and organisation development interventions are used to initiate.3 THE NEED FOR HRD HRD is needed by any organisation that wants to be dynamic and growth-oriented or to succeed in a fast-changing environment. Human resource development in the organisation context is a process by which the employees of an organisation are helped. as well as contribute to this value of creating traditions and culture of respecting people as human beings. in a continuous and planned way to: 1) 2) Acquire or sharpen capabilities required to perform various functions associated with their present or expected future roles. and promote this process in a continuous way. They have their own needs. and operate with the new values of treating people as human beings. Personnel 6 . Investment for increasing the resource is important. people working in organisations were given attention merely in administering the necessary conditions of work. There is also one more reason why investment in human resource is necessary. Because the process has no limit. teamwork and collaboration among sub-units are strong and contribute to the professional well being. They are not merely necessary evils to be reckoned with. This positive view of people working in the organisations as an asset with unlimited potential is the core of the concept of the human resource system. and by exemplifying an HRD philosophy that values human beings and promotes their development. 3) This definition of HRD is limited to the organisational context. training. is an important concept of the human resource system. so that people do not get dissatisfied. The mechanisms and techniques such as performance appraisal. This realisation of the need for continuous investment. The basic assumption underlying that view was that human beings are primarily motivated by comforts and salary. therefore. The traditional concept of personnel management was based on a very narrow view of human motivation. was on administration of salary and other benefits.

). In addition to developing the individual. departments and the entire organisation are more relevant units. (c) the human resource management department. the person. teams. While training may play the major role in designing and monitoring development efforts in the organisation. and developing relevant processes which contribute to their effectiveness. etc. The organisation’s overall health and self-renewing capabilities which.. The four partners or agents of development can be identified as: (a) the person or role. The capabilities of each individual in relation to his or her present role. innovate. sharpened.e. Finally. i. Besides several groups like committees. Hence. the organisation may be said to have an “enabling” culture. an “enabling” organisational culture is essential. or HRD. 7 . For others. The team spirit and functioning in every organisational unit (department. in turn. Even an organisation that has reached its limit of growth. l l Such a concept of development will focus on the different units available in the organisation for different purposes. When employees use their initiative. is also a partner in this process of development. attention needs to be given to the development of stronger dyads. group. Collaboration among different units of the organisation. take risks. groups. other parts of the organisation have to share in such an effort. etc. two-person groups of the employee and his boss. The dyadic relationship between each employee and his or her supervisor. experiment. The various foci and the four agents of development are shown in Exhibit 1. The individual and his role are important units for some purposes. task groups. also require attention. dyads. developing self-renewing mechanisms in the organisations so that they are able to adjust and proact. and make things happen. or the groups for whom the efforts of development are made. needs to adapt to the changing environment. Development in this sense becomes a massive effort. The concept of development should cover not only the individual but also other units in the organisation. No organisation is immune to the need for processes that help to acquire and increase its capabilities for stability and renewal. the entire department and the entire organisation also should be covered by development. thus making for an effective decision-making. increase the enabling capabilities of individuals. Development of such groups should be from the point of view of increasing collaboration amongst people working in the organisation. For this purpose. and the entire organisation. Human Resource Development System 12. The concept of development should therefore cover all such possible units. Employee capabilities must continuously be acquired. Such dyads are the basic units of working in the organisation. but these efforts are not enough to make the organisation dynamic and take it in new directions. The capabilities of each employee in relation to his or her expected future role(s). Their development would involve developing a climate conducive for their effectiveness. and used. the goals of the HRD systems are to develop: l l l l l The capabilities of each employee as an individual.4 HRD FUNCTIONS The core of the concept of HRS is that of development of human beings. (b) the immediate boss of the person. and (d) the organisation.policies can keep the morale and motivation of employees high. In fact.

Human Resource Development Exhibit 1 The Development Dimensions of the Personnel Function 1) Analysing the Role a) Task analysis b) Key performance areas c) Critical attributes d) Job evaluation Matching the Role and the Person a) Selection/recruitment b) Placement c) Potential appraisal d) Promotion e) Career Development. Recruitment and placement are important aspects of HRM. finding out who has potential to match the requirement of the job. Obviously. Another aspect of matching role and person is reflected in potential appraisal. 8 . 2) Matching the Role and the Person Once the organisation is clear about the dimensions of the roles or the jobs. Promotion is only one part of longterm and succession planning. career and succession planning Developing the Persons in the Role a) Performance appraisal b) Feedback and counselling c) Mentoring d) Career development e) Training Developing the Role for the Person a) Job rotation b) Job enrichment/ redesigning c) Role effectiveness and efficacy Developing Equitability a) Management of salary and amenities b) Management of incentives and rewards c) Standardising and administering procedures Developing Self-renewing Capability a) Communication b) Organisation development c) Organisational learning d) Developing culture and climate Coping with Collective Power 2) 3) 4) 5) 6) 7) 1) Analysing the Role One of the main aspects of HRM is to analyse the role in terms of responsibilities or key functions/ performance areas of the role. and the competencies required to perform the role effectively. it tries to get the best people for these jobs. After people are recruited they are put in different places. Unit 10 deals with potential appraisal. the next step is promotion of people by placing them in appropriate roles for which the organization is searching people. Placement is useful for giving varied experiences to people being recruited.

although job rotation is being practiced in most of the organizations. It is evident now that most of the work is done by teams. and establishing processes that build a climate to promote enabling capabilities in the organisation. OD aims at maintaining profiles of organisational health. We are discussing this aspect in Unit 14 in this block. but unfortunately not adequately dealt with. People have high performance and develop competencies only if these are rewarded by the organisation. It needs to diagnose its problems from time-to-time and take steps to develop new competencies to cope with the various problems and challenges it would be facing. assisting sick departments. Attention has also been given to organisationaI learning. and team effectiveness is important for all organizations. to develop the competence of an organisation to analyse its experience and learn from it. One important aspect relating to employee development. Equitability can also be developed by standardising administrative procedures. rewards. helping interested units and departments in self-renewal. it has been attempted with workers also. OD has now widened considerably. and some organisations have also tried out job enrichment based on Herzberg’s concept of motivators. The third aspect of self-renewal is research orientation in Human Resource Development System 9 . 5) Developing Equitability Satisfaction level of employees depends to a great extent on their perceived justice being done to them without any discretion. We have devoted sufficient attention to this aspect in Unit 15 of the block. creation of strong teams and so on. It is also important to give opportunity to young and bright persons to deal with their problems. Performance appraisal is not complete unless the performance is properly reviewed and feedback is given. Similarly. it is no more confined to managers. Most of the OD interventions in organisations started with deep process work beginning at the top level. devoted to this important aspect in this block. monitoring organisational health. but. the focus is on developing process competency to increase organisation effectiveness. and various amenities. they are helped to find out in what they have to be more effective in their jobs. many rewards may be non-financial also. This can be done through action research that is concerned with development of competencies through effective teams to diagnose the problems and initiate the process of collaborative work to deal with such problems. Reward does not mean financial reward only. and people are helped to understand their strengths and weaknesses. Unit 13. as reflected in practices like management of compensation. 6) Developing Self-renewing Capability An organisation should be concerned not only with its growth. OD in the earlier years. This process of mentoring is also discussed in Unit 14 of this block. Unit 15 discusses development of roles.3. such help is provided generally by senior persons who are not necessarily related in job with the person seeking help. along with performance coaching or counseling. Traditionally HR function has given attention to individual employees and teams have been generally neglected. and in fact more through effective supervision. mainly in the 1960s (and partly in the 1970s) was team/group-based. by helping them to understand their strengths so that they can leverage them for better performance. conflict management. including role effectiveness and role efficacy. This has been discussed in Unit 13. is training. 4) Developing the Role for the Person Very little attention has been given to role. but also with its health. so that people do not have any feelings that decisions are subjective. In Organisation Development (OD). Developing the Persons in the Role Individuals develop not only through training.

in all directions. bulletin boards and so on. it helps in analysing data and information generated by the HRD sub-systems. 70 per cent by the time general foremen get it.000 in a year) and has an open house at his residence between 7 and 9 every morning where anyone can walk in and discuss personal or work-related problems. which means consciously and continually collecting data in order to understand the various issues. Sharing of information from higher levels with the employees may also help employees to feel they are a part of the organisation. the following are the objectives of communication in an organisation: information sharing. control. HRD in L&T has already established the orientation and several other organisations are in the process of introducing such “Research-orientation”. For example. b) Diffusion of procedural information: This can be done by circulars. 1 0 .Human Resource Development HRD. Communication also minimises hierarchical and psychological distance and maximises collaboration amongst individuals and teams in an organisation. and facilitating group development. There are mainly four directions of organizational communication: i) Downward communication: The following types of communications are suggested along with some mechanisms: a) Diffusion of routine information: This can be better done through circulars. For example. especially prepared notebooks and manuals. c) Socialisation: As already suggested. 60 per cent by the time plant managers receive it. socialisation of individuals in the value system of the company should be done through induction booklets. two often neglected aspects. It has helped in effective implementation of decisions. A very systematic attention has been paid to communication in VSAT Industries (including regular business-related communication with the union) with great benefits Communication ensures the flow of goal-oriented information and messages between different individuals and groups. data related to HRD are being systematically analysed in Eicher on a regular basis. More specifically. in which more than 700 persons participate. Communication minimizes distortion of information (studies have shown that in downward communication the information loss in terms of original messages is about 40 per cent by the time it reaches GMs. to help them perform their roles more effectively. data were collected. It has contributed to mutual sharing of information and concerns and better understanding between management and employees. in BHEL (Bhopal Unit). HRD related research is important. and designing on-going interventions based on such data. and meetings. problem solving.back. In Tata Iron and Steel Company (TISCO) the Chairman keeps communication with his employees by answering every letter that is addressed to him (some 80. facilitating change. and used effectively in L&T on the working of the appraisal system including counselling. For example. some innovative and successful practices have been evolved in a number of Indian organisations. are discussed in some details below: Communication: Many organisations have paid attention to communication. special programmes. and the loss is as high as 80 per cent by the time it reaches the worker). Such data can help to improve implementation of the appraisal system. decision making. feed. influence. He also holds dialogues with large groups. Communication and development of culture. Over the years. A MECOM as an open forum. Management Employees Communication Meetings (MECOMs) have been effectively used. Establishing this system was not easy: a great deal of OD work had to be done prior to and during the evolution of MECOM. sometimes consisting of as many as 2500 persons.

iv) External communication: Communication with external agencies. based on trust between a manager and his employee. e) Feedback on individual performance: The most effective way of this communication is the appraisal review and coaching meetings held on the basis of performance appraisal results. training programmes. regions and units is very important to develop collaboration and reduce bureaucratisation. but often gets little attention. 1989: 150). HRD. c) Problem solving and involvement: The effective mechanism for solving person related problems of lower level management by the higher levels are grievance procedures and periodical meetings called by the higher level management. in many cases. ii) Upward communication: Upward communication is as necessary as downward communication. competitors and potential collaborators. which however. These are suggested below. like current and potential customers. and periodically reviewed to save it from becoming ritualistic. The following purposes can be served by the suggested mechanisms: 1 1 . along with other relevant people from the cor. Another good method which may help the people at lower levels in the organisation to participate in problem solving is a suggestion scheme. a) Management control: Use of management information ensuring regular flow of information helps in achieving effective management control. c) Coordination: Standing committees are meant to make coordination more effective. and monitor it for sometime. with different mechanisms as suggested below: a) Experience sharing: Functional group meetings (like those of Finance.porate departments may be helpful. in NHN. properly executed.d) Job-related information: This needs to be done by interpersonal communication between the job holder and his reporting officer. b) Problem solving: Participation of people from different business groups in solving common problems can be achieved by setting up a special Task Force (group to work out details and. A more effective communication for development is by the model set by senior managers. to implement action plans) and a Problem Clinic (group to diagnose problems and suggest alternative solutions. resource providers (banks and financial institutions) is very important. to help them to take follow up action on problems has been found to be useful in some organisations. and group meetings. b) Feedback: Feedback from lower levels to higher levels is very useful. along with possible mechanisms of developing them. to the management. There are several purposes for such communication. government agencies. needs to be well designed. VST Industries have introduced the scheme in a planned way (Vidyasagar . A small Task Force may be constituted to prepare a scheme. iii) Horizontal communication: Communication across business groups. Such feedback can be provided by use of special questionnaires and interviews. Human Resource Development System (f) Employee development: Employee development is done through dyadic communication. Exit interviews conducted when people are leaving the organization are used for feedback on important aspects which the people at higher level must know. EDP people and others) from different business groups. R&D. Periodical meetings allowing all employees to express their feelings and give feedback. The following tasks can be achieved. using special techniques of diagnosis).

Different approaches have been adopted to create a climate conducive to work. Therefore. Some have made attempts to improve their cultures (viz. Maruti Udyog adopted some practices because of the positive pressure of Suzuki. C-Dot. The following action ideas help in developing strong corporate identity. Eicher). brochures. development of culture would involve developing a strong corporate identity. An instrument for assessing appropriate HRD climate has been developed and used in many organisations and some instruments to measure ethos and. advertisements and the like are important mechanisms. a) Strong Corporate Identity: The sense of identity with the organisation develops when the employees have a sense of belonging. purposive. Participation of Company Executives in professional bodies like Management Associations. Systematic attention has been given to the reward systems in the construction group of L&T. c) Influencing: An organisation should not shy away from its role of influencing policies and decisions in the concerned industries and other forums. development of important values. Development of culture takes a long time and involves complex processes. This ability has been amply demonstrated by many organisations. Indian Farmers’ Fertiliser Cooperative (IFFCO). attitudes. can do a great deal of harm to the organisation. Modi Xerox. Organisational culture can be defined as cumulative ways of thinking and behaving which the values. Organisational climate is another concept close to culture that has received attention in recent years. zero-defect production. b) Credibility building: Balance Sheet and correspondence (prompt. One general weakness of Indian companies is the lack of expertise and seriousness in influencing external agencies. Some organisations in India have adopted Japanese practices. a reward system (including incentives) both for individuals and teams deserves careful attention. Creating conducing organisational climate. Chambers of Commerce SubCommittees also help significantly. building healthy traditions and developing consistent management practices. Organisational Culture: Culture has remained the most neglected part of HRD. balance sheets. Procter and Gamble. Sundaram Clayton.Human Resource Development a) Image building: Annual reports. Rewards can facilitate and promote good work but if not designed properly. 1 2 . atmosphere are available. This helped in the development of a new organisational culture. Cultural systems are concerned with development of appropriate organisational culture. and they feel proud to belong to the organisation. Development of appropriate culture has attracted a great deal of academic attention in the past few years. rituals. but has attracted some attention in the last few years. and precise) contribute to the credibility of the company. Interest in culture has been aroused by the examples of Japanese successes. Operationally. and discipline. These practices are a 7 hours 45 minutes shift. where a need-based system was evolved. Improving communication and evolving effective reward systems. deserving detailed planning in terms of form and content. It is to be noted that whatever is rewarded in an organisation gets reinforced. cost cutting. Some companies have paid deliberate attention to developing an appropriate culture (viz. Identity develops as a result of interaction of the employees with the organisation. One of the most important roles of Corporate Management is to develop an aggressive (in the positive sense) posture and competence to deal with critical issues. and sanctions in an organisation shape. Ballarpur Industries Ltd. The following aspects deserve attention in this regard. notable among them being Maruti Udyog and Sundaram Clayton.. Well-prepared dialogue by the top management and participation in conferences and forums must receive the attention they deserve.

if shown on special occasions. appraisal. Attention should be given to the identification of functional rituals within the organisation.i) Developing an attractive booklet. instead of teaching what values are good. b) Developing Important Values: Values related to organisationaI culture. and family traditions. Human Resource Development System 1 3 . ii) Films on success experiences in organisations. in which. By inviting suggestions from the key divisions of an organisation. feedback on the gap between “espoused values” and “values in action” as reflected in the management practices. the HRD Department can prepare a list of such video films to be developed. Rituals or celebrations associated with the transition of people from one state to another are important avenues for identifying a culture. iv) Special OD intervention in developing collaboration and concern for excellence may help in anchoring appropriate value orientation through such exercises as team building. division-unit. Sundaram Clayton’s “acculturation workshops” for new entrants are very well designed and exemplary. but by demonstrating these values in action by the key role holders. The concerned groups can then examine the data for insight and development of appropriate action plan(s). the programme helps participants to examine the relevance and functionality of certain values and openly questions and discusses the desirable value system and the one that they see in action. ii) Special value-orientation programmes in developing appropriate values. achievement and extension motivation programmes and so on. in particular. iii) Company newsletters giving information about business development and significant information about the employees are being published by many organisations. “Manthan” directed by Shyam Benegal for NDDB is a good example of such a film. These rituals do contribute to the development of social.) and several other organisations have developed good induction material. In Indian society for example. promotion. giving basic information about the company. Such programs on value clarification help people to internalise values by stating their own values without hesitation. Indo-Burma Petroleum Company (IBP Co. or writing. and also by developing specific ideas of practicing such values in the workplace. Detailed planning is needed to help them develop pride and joy in becoming a member of the company that will reinforce the sense of belonging and identification with the company. i) Survey feedback of values. by examining openly and frankly the desirability of a different value system. about 16 rituals are associated with transition from one phase of life to another. As for example. career planning and rewards system can indicate what values they reinforce. may help build corporate identity. talks. iii) Examining the various operating systems in the organisation. inter-division) has been used among other things for the development of organisational identity. such as values of excellence and human consideration do not develop through mere didactic exercises like lectures. a content analysis of the budgetary. i) Induction programme for new entrants help the employees to develop a sense of belonging. c) Building Healthy Traditions and Practices: Traditions in an organisation are built on the basis of important rituals. MIS. Some interesting practices have already been found useful in some companies. The following practices have helped the development of relevant values. Seminars can be held at different levels to deal with the data generated on these gaps. iv) Mobility of people (corporate field.

to strengthen the feeling of the company being a family.51 and the item for the year is selected by a group of about 40 employees. departmental councils. best workers awarded during the past seven years. and these internalise materials in the collective sense from a sub-culture and eventually integrate with the culture in the organisation. departmental heads and directors of the company). iv) The exceptional behaviour of an employee in helping the organisation or in solving different problems and so on. That year everyone took home a mixer-grinder. and thereby. Petrofils. 1 4 . A number of such rituals are being designed.36 crores on an investment of Rs. Instead of only written communication of promotion. The Malayala Manorama group has evolved some rituals associated with an employee’s death and old age. and care is taken to ensure that they remain meaningful and do not degenerate into mechanistic rituals. a successful and fast expanding company in the joint sector has been using rituals involving the top management. record breaking performances are celebrated by rewarding everyone in the company. Following are two such examples. from the Chairman to the Khalasi (helper). Steel Tubes of India (STI) has evolved a governance-system suited to the Indian culture. v) Celebrations of incidents significant to individual employees and the organisation are important. and their families. 67 crores was made. 7) Coping with Collective Power Traditionally industrial relations have been dealt in the framework of Industrial and labour laws. a face-to-face conversation with the concerned chief may be useful. the employees. Although this aspect is undergoing a lot of change. they are reinforced by the organisation. senior managers. People find reasons to repeat a behaviour that is rewarded. elected by the entire work force) and Jan Sabha (representing elected members. rewarded and made visible. For instance. For example. before it is communicated in writing.Human Resource Development ii) Promotions need to be treated as an important event of transition of a person from one stage to another. This may help to develop the tradition of indulging in such behaviour more frequently. so as to symbolise the contribution of all the employees. the information of promotion is shared with the concerned employee along with its implications. “senior members” (employees having completed certain years of service) are taken free on a Bharat darshan trip along with their spouses. A behaviour repeated by one is internalised over a period of time. must be recognised. employees with over 20 years service. it is still very important. Everyone is given a gift worth Rs. Unions and associations of employees use collective power to bargain with the organizations. Transition from one productive year to the next is marked by a committee of employees selecting a gift for everyone. consisting of joint committees (representatives of management and workers. in 1985 a new record for sales was set when a profit of Rs. For example. (“senior couples”’). Another interesting ritual is the celebration of birthdays in the Board room for all employees. iii) Rituals associated with Old age and retirement of people should also receive due attention from the HRD wing. but may also make organisations more akin to the Indian culture in a broader sense. and a whole block has been devoted to various aspects of workers and related issues. Some interesting experiences in some organisations have shown that these may help not only to develop a strong organisational identification and thereby contribute to culture.

.. .......... 7 1a — 4a........... ........................................... 1b.......................... Exhibit 2 : Matrix of Human Resource Development * Agents of the HRD Process Foci of HRD Person (Self) The Individual Goal setting Performance analysis Performance improvement Work humanisation Education Coping Advancement The Dyad (employee-boss) Trust Mutuality Helping The Collectives (teams) Effectiveness Collaboration Department/Organisation Climate Self-renewing Process Immediate boss Personnel or HRD Dept......................... Dyades............ As will be seen.................................. 1c................... ...... 5b... 2b..................................................................... ..........5 HUMAN RESOURCE DEVELOPMENT SYSTEM The combination of the four foci of HRD ( Individuals...Activity A Consider the development dimensions in above section and describe how do these HRD functions are carried out in your organisation... HRD system caters to all human resource units of the organizations.......... ............... 3d......... Immediate boss.. and Organisation) with four agents of HRD (Self. 4c 4a 4c 1c....................... Human Resource Development System 12......... 5b 4b... and all concerned are involved in running the system....... 3e 6 6 6 6... 5c 7 6 6 * The numbers in the cells refer to the various development dimensions given in Exhibit 1 1 5 .............................. 3b 3a 1a — — — 3b 3b 3b 1a..... 2c........................... 7 6. HR department........... 7 6....................... the elements in the cells are the various development aspects discussed above............................... 4a 6 6 6 6... In matrix representing the HRD system is given in Exhibit 2 ..... 3c................ Organisation 1a............... and Organisations) gives the HRD systems..... 3a 3b 3b 1a — 3b 3b 3b 3b 3b 3a..................................... 3a 3a........ Collectives........................ 7 5a......................................... 3e 3e 3e 4b 3a — 3d...............................

........................... marketing.. and the developmental climate within the organisation... HRD systems must be designed differently for different organisations.. availability of outside help and so on................ and increased employee productivity and commitment...... Both positions seem to be extreme....... and other similar functions.............................................. HRD should take the organisation forward.. how is it to be sub-divided. the phasing............... line people should be involved in various aspects of HRD......... development of diagnostic ability (so that problems can be located quickly and effectively)........... and HRD should strengthen their roles......... and so on.................... what designations and titles will be used.... ....................... employee perceptions of these practices............................. 1 6 ...... their relationships.... may differ from organisation to organisation. b) Balancing adaptation and change in the organisational culture: Although HRD systems are designed to suit the organisational culture... These linkages are extremely important... available support for the function...... ............. d) Building linkages with other functions: Human resource development systems should be designed to strengthen other functions in the company such as long-range corporate planning............ technology...................... ..... Focus of the System a) Focus on enabling capabilities: The primary purpose of HRD is to help the organisation to increase its “enabling” capabilities.............. the specific components................ existing HRD practices in the organisation...........Human Resource Development Activity B Study the above exhibit and develop a similar matrix for your organisation showing linkages of various development dimensions.. and this can be done only if its design anticipates change and evolution in the future............... Designing in integrated HRD systems requires a thorough understanding of the principles and models of human resource development and a diagnosis of the organisation culture.. improvement of problem solving capabilities.6 PRINCIPLES IN DESIGNING HRD SYESTEM Of course..... Action is the sole responsibility of the line people. the processes involved in each.. development of organisational health.......................... ..................... budgeting and finance............ These include development of human resources.. structure.............. Although the basic principles may remain the same.................... the role of HRD may be to modify that culture to increase the effectiveness of the organisation....... size........... e) Balancing specialisation and diffusion of the function: Although HRD involves specialised functions.... 12...... production................. and similar issues should be settled after consideration of the various contextual factors of the organisation—its culture and tradition.. There always has been a controversy between those who believe that HRD should be designed to suit the culture and those who believe that HRD should be able to change the culture...... levels of existing skills........... c) Attention to contextual factors: What is to be included in the HRD systems.......... The following principles related to focus..... and functioning should be considered when designing integrated HRD systems........

in considering people for promotions. Differentiation as well as integration mechanisms are essential if the HRD system is to function well. For expertise that is 1 7 . but qualitative and insightful decisions are also necessary and desirable. If salary administration and placement are handled separately. quantitative data are necessary inputs. It may be helpful to include persons from other functions in the organisation in the HRD assessment effort. specifically in content areas that are used frequently within the organisation. inputs from manpower planning should be available to line managers for career planning and HRD units for potential appraisal and development. performance and potential appraisals provide necessary information for training and OD. etc. c) Balancing differentiation and integration: The human resource development function often includes personnel administration. For example. A thorough annual review reappraisal every three years will be invaluable in reviewing and planning the system. For example. Multiple responsibilites produce several kinds of conflict. they should be linked to performance appraisals. b) Ensuring respectability for the function: In many companies. another for training. It therefore requires systematic monitoring to review the progress and level of effectiveness of the system and to plan for its next step. and OD programmes provide information for work redesign. These three functions have distinct identities and requirements and should be differentiated witin the HRD department. and industrial relations. At the same time. such as performance and potential appraisals. Of course attempts should be made to quantify many variables and to design computer storage of various types of information. It is necessary that HRD be instituted at a very high level in the organisation and that the head of the HRD department be classified as a senior manager. task groups. are difficult to quantify. human resource development and training. This person should report directly to the chief executive of the organisation.Structure of the System a) Establishing the identity of HRD: It is important that the distinct identity of HRD be recognised. b) Balancing quantitative and qualitative decisions: Many aspects of HRD. It is wise to establish specific linkages to be used to manage the system. Data from recruitment should be fed into the human resources information system. For example. another for potential appraisal and assessment. Human Resource Development System Functioning of the System a) Building feedback and reinforcing mechanisms: The various sub-systems within HRD should provide feedback to one another. d) Establishing linkage mechanisms: HRD has linkages with outside systems as well as with internal sub-systems. Standing committees for various purposes (with membership from various parts and levels of the organisation). c) Balancing internal and external expertise: A human resource development system requires the development of internal expertise and resources. the personnel function does not have much credibility because it is not perceived as a major function within the organisation. and ad hoc committees for specific tasks are useful mechanisms. Thus a balance between the mechanical and the human factors is necessary. Systematic feedback loops should be designed for this purpose. e) Developing monitoring mechanisms: The HRD function is always evolving. but other factors must also be taken into consideration. Both the credibility and usefulness of HRD depend on this. The person in charge of HRD should have responsibility for this function exclusively and should not be expected to do it in addition to any other function. these roles should be integrated through a variety of mechanisms. One person may be responsible for OD.

an organisation that uses only in-house expertise may not benefit from new thinking in the field. 12. followed after some time by more sophisticated forms. It is preferable to use internal personnel to conduct training. iv) Sophistication phasing introducing simple forms of sub-systems. 5) 6) 1 8 . introducing job specifications (identification of critical attributes of jobs) before introducing a complete potential-appraisal system. It is necessary to plan for an economical and workable balance between the two.Human Resource Development required only occasionally. The HR function also got expanded to include some new initiatives in a few organisations. Restructuring salary and reward systems through compensation surveys.. performance-linked pay or pay-for-performance. and representation of HR Directors on the Board are two significant indicators of the recognition of people as a resource and partners in business. ii) Vertical phasing introducing the system at one or a few levels in the organisation and expanding up or down gradually. Initiating and managing quality initiatives. BPO organisations (call centres) have further increased their focus on recruitment and outsourcing of recruitment. This may include: i) Geographical phasing introducing the system in a few parts of the organisation and slowly spreading it to other parts. realigning and redrafting HR policies and practices. 1) 2) 3) 4) Reorganisation and restructuring. Financial services. including quality circles. Some of the new roles the HR functionaries started performing in the last decade include the following. and particularly in India. Most of these relate to human resource development. depending on its needs. including downsizing. This may be necessary in a large or widely located organisation.. Each stage should be planned carefully.. compensation planning etc. Telecom. ISO certification etc. Managing mergers and acquisitions by changing HR policies. with sequenced phases built one over the other. including climate surveys. With the recognition of the need for competent people. Enhanced emphasis on recruitment or placement. On the other hand. Insurance. This is what was envisaged in some ways when the first HRD department was designed in Larsen & Toubro in mid-seventies. and bench marking with competitors and others globally. The status of the HR function got very much uplifted across the world. Slowly the term Personnel Function has been replaced with the term Human Resource or HR Function. size and level of sophistication. and Personnel departments and Personnel Managers have been re-designated as Human Resource Departments or Human Resources Managers. flattening the structure.7 CHANGING BOUNDARIES OF HRD Over time there have been many changes in the HR function. employee satisfaction surveys. internal customer satisfaction surveys. Conducting a variety of surveys. a company that relies solely on external HRD help does not develop the internal resources that are necessary for effective functioning. Rushing the introduction of an aspect of HRD may limit its effectiveness. small group activities. Some aspects may require a great deal of preparation. the use of external resources or consultants may be the most feasible. followed by other functions. rightsizing. introduction of stock options. For example. d) Planning for the evolution of HRD: Various aspects of HRD can be introduced into the organisation in stages. iii) Functional phasing introducing one function or sub-system. outsourcing etc. Lifting up the HR function to the Director level in the corporations. the new economy industries like the IT. however.

web based learning and use of other technologies for learning. 15) Improving quality of work life. workmen etc. and exploring it as an individual as well as performance development tools. These new functions fall into one or more of the categories of the HRD system. 13) Emphasis on leadership and leadership development at all levels. identification of high potential employees and designing retention strategies. expansions. Starting of Corporate Universities and in-house training institutions and academies to encourage continuous education programmes and competency building. acquisitions etc. mergers. All these new developments of the last decade are in the direction of making HR. developing and promoting talented individuals. off campus learning. Source: HR Group of Turner-Morrsion. Exhibit 3: Making HR a Business Partner 1) 2) 3) 4) 5) 6) 7) Train HR people in business to get a holistic business perspectives Get involved in larger organisational issues and handle coordination at that level Align HR strategies with business strategies Keep in mind business strategy while designing training programmes Convene business strategies forums. Introduction of 360 Degree Feedback. Recently HR team from one company in India suggested seven ways of making HR a business partner (See Exhibit 3).7) Introducing new technologies of training. The classification suggested earlier is only indicative.. a strategic business partner. This has been has been brought into focus by the IT industry where the environment becomes a critical factor in effective functioning of knowledge workers. 11) Increased emphasis on mentoring and coaching. including using it for leadership development. and 14) Participation in strategic thinking. distance learning.). hold strategic discuss meetings.. through multi-skilling. consolidations etc. particularly operators. business planning. starting of fast track systems. The boundary gets extended to participation in strategy and business planning (including planning of mergers. Organisation can structure their function the way that suits their requirements. acquisitions. 1998. 12) Increased emphasis on training of all employees. Human Resource Development System 8) 9) 10) Use of Assessment Centres or Development centres for identifying.more specifically HRD. and prepare discussion paper Initiate process of discussion on strategy formulation from the front-line upward Help in searching state of the art practices to discuss with the business team. July. The principles remain the same. on-line education. The HRD systems model is broad enough to include the new roles of HR managers. Researches have shown that effective firms adopt some of the following HR practices: l l Financial incentives for excellent performance Practices that motivate employee effort and capture the benefits of knowhow and skill 1 9 . shown in Exhibit 2. evolving leadership models that fit into the company culture and take care of the unique needs of the company. including e-learning. experimenting with 360 degree feedback by linking with reward systems. etc.

Designing and Managing Human Resource Systems. (2003). Oxford & IBH Publishing Co.8 SUMMARY Today every successful organisation pays adequate attention to their HRD functions. Rao. Harvard Business School Press. V.10 FURTHER READINGS Pareek. January-February. and Pereira. New Delhi. properly. Human Resource Development. D. increased productivity and excellence in organisation.V. What are the principles in designing a HRD system? Write an overview of the changing boundaries of HRD. 2 0 . (1997). 12. and Rao. R. integrated HRD systems can contribute significantly to positive cultural changes. Ulrich.F. P. Tripathi. D. Sultan Chand & Sons. (1986). T. Kaplan. Write short notes on: a) Communiction b) Developing equitability c) Coping with collective power 3) 4) 5) Discuss how organisational culture can be developed..C. To obtain full benefits of HRD. Harvard Business Review.9 SELF ASSESSMENT QUESTIONS 1) 2) Describe the concept of HRD and its need in present industrial scenario. Recent Experiences in Human Resource Development. Oxford & IBH Publishing Co.. New Delhi. T. Competitive Advantage through People. If implemented. Harvard Business School Press. 12. New Delhi. “Balance Score Card”. (1992). Pfeffer (1994). Human Resource Champions .V. it should be introduced as a system and should be updated to keep track with the changing boundaries. (1981).Human Resource Development l l l l l l l l l l l l l Rigorous selection and selectivity in recruiting Higher than average wages Plans of employee share of ownership Extensive information sharing Decentralisation of decision-making and empowerment Self-managing teams High investment in training and skill development Having people do multiple jobs and job-rotation Elimination of status symbols A more compressed distribution of salaries across and within levels Promotion from within Long-term perspective Measurement of HR practices and policy implementation 12.

training plays a vital role.6 13.5 13.1 13. discuss ways of making training more strategic.9 Introduction Defining Training Needs and Benefits of Training Organising Training Programmes A Suggested Training System Evaluation of Training Retraining Some Issues in Training The Present Status of Training 13. explain the concept of retraining.7 13.10 Making Training a Strategic Function 13. you should be able to: l l l l l l l l Training explain the meaning of training.UNIT 13 TRAINING Objectives After going through this unit. also areas of evaluation of training.11 Towards Learning Organisation 13. discuss the need and importance of training. describe various methods of training. identify areas for evaluation of training.13 Self Assessment Questions 13. values and environment. suggest a training system.12 Summary 13.3 13. this unit aims at providing insight into the concept. need and methods of training. concepts.8 13.1 INTRODUCTION Training is required at every stage of work and for every person at work. 2 1 . Training programmes are also necessary in any organisation for improving the quality of work of the employees at all levels. It is also required when a person is moved from one assignment to another of a different nature. and elaborate dimensions of organizational learning.2 13.4 13. To keep oneself updated with the fast changing technologies. Taking into account this context. Structure 13.14 Further Readings 13. retraining and dimensions of organisational learning.

Recent surveys on the investments made by Indian organisations on training indicate that a large number of organisations do not even spend 0. improvement in methods of work. they are not given opportunities for the application of such skills. improvement in quality of products. A good training sub-system would help greatly in monitoring the directions in which employees should develop in the best interest of the organisation. waste and spoilage. Organisations that do not develop mechanisms to catch up with and use the growing technology soon become stale. reduction in learning time. reduction in supervisory burden. Training is necessary when a person has to move from one job to another because of transfer.3 NEEDS AND BENEFITS OF TRAINING Training is essential because technology is developing continuously and at a fast rate. Explained below are various factors. a well-planned and well-executed training programme should result in: l l l l l l reduction in waste and spoilage. the organisation should create conditions in which people acquire new knowledge and skills and develop healthy patterns of behaviour and styles. If human resources have to be developed. managerial and behavioural aspects. A good training system also ensures that employees develop in directions congruent with their career plans. minimum of cost. One of the main mechanisms of achieving this environment is institutional training. Systems and practices get outdated soon due to new discoveries in technology. Increasing use of fast changing techniques in production and other operations requires training into newer methods for the operatives. People have not to work. 13. 2 2 l . developing individuals in the organisation can contribute to its effectiveness of the organisation. should be monitored so as to be purposeful. and to produce quality goods and services. However.Human Resource Development 13. Old employees need refresher training to enable them to keep abreast of changing techniques and the use of sophisticated tools and equipment. reduction in machine breakage and maintenance cost. including technical. but work effectively with the minimum of supervision. once their skills are developed.1 per cent of their budget on training. l Employment of inexperienced and new labour requires detailed instructions for effective performance on the job. giving rise to the need for training. and expectations raised. development is likely to increase the frustration of employees if when. however. Many organisations do not even have a training department. This also happens to be a neglected function in most of the organisations. There are some other reasons also for which this training becomes necessary.2 DEFINING TRAINING Training is the most important function that directly contributes to the development of human resources. Hence. Without proper monitoring. l l l l Such development. reduction in accident rate. Training is a short-term process utilising a systematic and organised procedure by which personnel acquire technical knowledge and skills for a definite purpose. promotion or demotion.

enabling the organisation to provide increased financial incentives. and on-the-job training for a select group of employees. Continuing Education Besides these. A) Methods of Training Analysis of an Activity: List in a logical sequence. Training needs identified on the basis of performance appraisal. wider awareness among participants. Training is critical in preparing the employees before placing them in a new job. 2 3 . The following sources can be used for identifying training needs. and personal growth. Potential Appraisal Training needs identified on the basis of potential appraisal. most of the training programmes that are organised today. On the basis of the annual appraisal reports. various dimensions of training can be identified. the activities in producing product or service or part thereof. improvement of morale and reduction in grievances. and determine what new knowledge or skill is called for or which aspects of present knowledge or skill need to be modified. Job Rotation Working in the same job continuously for several years without much change may have demotivating effects. be it additional knowledge. provide good information for organising in-company training. aim at equipping the managers with new technology. reduction in manpower obsolescence. enlarged skill. Training l l 13. would become inputs for designing training programmes or work-out training strategies for developing the potential of a selected group of employees who are identified for performing future roles in the organisation. These training programmes attempt to help the managers raise their present level of effectiveness. opportunity for internal promotion and raising of pay rates. Analysis of Problems: To analyse ‘problems’ and determine what additional skills. skill or understanding.4 ORGANISING TRAINING PROGRAMMES A good system of training starts with the identification of training needs. Performance Review Reports Performance review reports help in identifying directions in which the individuals should be trained and developed. knowledge or insights are required to handle it.l l l l l improvement in production rate. Analysis of Behaviour: To analyse typical behaviour by individuals or groups and determine the corrective action involving training. Some organisations plan job rotation as a mechanism of maintaining the motivation of people. Analysis of an organisation: To analyse organisational weaknesses to produce clues to both individual and group training needs. Appraisal of Performance: To analyse performance and determine if someone should get something. improvement of efficiency and productivity.

Research: To identify implications for training and development as a result of research. Counselling: To discuss between a training practitioner and a person seeking guidance regarding way he can improve his on-the-job performance or prepare for advancement. . hand them over to the persons whose ideas are sought. process. keep up-to-date on new techniques and procedures. activity. Checklist: To break down a job. Self-analysis: To self-evaluate and know what is needed in theory. Role Playing: To get clues to his training needs in a skill. do we need to handle our work better’. as to what the desirable next steps are in the organisation’s training programme or ‘what additional areas of knowledge (or skill or understanding). and fight his own obsolescence. Committee: To constitute an advisory committee composed of persons responsible for or with a direct interest in an activity to identify training needs. personnel or others (as long as it is homogenous). skill or insight. the responses to special situations and to study the pattern of deviation. Observation: To observe such things as may have value as indicators of training needs. to arrange these cards in what they feel is their order of importance for various training needs. Interviews: To arrange a formal meeting with the person or group concerned employing the interview techniques. Incident Pattern: To note in terms of success or failure. programme. In-basket: To measure or test a manager’s ability to handle some of the day to day challenges which come to him in writing in his ‘in-box’ from various sources. professional. skill or attitude. Buzzing: To ask an audience of supervisors. Conference: To identify training needs and make decisions on ways these needs shall be met. Card Sort: To write statements or potential training needs on cards. especially needs which are just under-the-surface or emerging. an area of knowledge. Consultants: To employ outside consultants to determine training needs and develop ways to meet them. Then to have checked off by each employee the items about which he feels he would like to have more skill or knowledge. Problem Clinic: To arrange meetings of a homogenous group to discuss a common problem and develop a solution. Informal Talks: To meet and talk informally with people for finding clues to training needs. or area of responsibility into a list of detailed parts or steps arranged in logical sequence. or in understanding or attitude by observing how each role player acts in a role playing situation. 2 4 Simulation: To analyse performance in simulated exercise to reveal individual and/or group training needs. managers. additional knowledge. Comparison: To compare what an individual is doing (or contemplates doing) with what others are doing or have done to learn about new ways to handle old problems.Human Resource Development Brainstorming: To bring together a homogenous group and to ask individuals in the group to call out any ideas they have for answering a ‘how to’ question and identify items which call for additional knowledge.

............................................. etc.................... Tests: To perform tests to measure skill........... It should reflect the primary and secondary objectives mentioned above...... information................. Workshop: To identify in a workshop.................... ............................ a suitable training policy has to be evolved by the top management........ Slip Writing: To write on a slip the type of training needed and analyse the information on these slips........................ Write below the ten most commonly used methods for identifying training needs.................................. identify course contents......... the need for further understanding or insight about organisation goals or operations.......... Surveys: To undertake surveys that can be used to take inventory of operations................................................................ ..... Studies: To undertake studies which can turn up training needs which will have to be met if the plans were adopted........................................................... on transfer......................................................................................................... ..................... and developing the skills that would be required in their particular fields.................................................................................................................... The second objective is to assist the employees to function more effectively in their present positions by exposing them to the latest concepts............................... and impart to them the required skill and knowledge. Training 10) .... Task Force: To constitute a task force which.................................................................................. Activity A You may be aware of how training needs are determined in your organisation....... ............. you may contact your Personnel Department for the purpose............................................... in analysing the problem may unearth training needs which must be met before their recommended solution to the problem can be implemented....... If not........................ or on promotion....... B) Formulation of Training Objectives As you have seen earlier...................... 1) 2) 3) 4) 5) 6) 7) 8) 9) ........................................................ ......... knowledge or attitude and to identify gaps............Skill Inventory: To establish and annually update an inventory of the skills of their employees and to identify gaps or blind spots in reserve or stand-by-skills..... ............ employee attitudes...... ..................... delimit the scope of the training................ A training policy should be able to provide answers to the following questions: 2 5 .................................. the first objective of training is to prepare employees for the job meant for them while on first appointment......................................... techniques........................................................... The third objective is to build a second line of competent officers and prepare them to occupy more responsible positions...... C) Formulation of Training Policy Even though training is primarily the responsibilsity of the Personnel Department..................................... Questionnaire: To develop a questionnaire to elicit information which can be used to determine training needs.......... ............ etc.......................................... implications of advanced planning.............................

The techniques and processes of a training programme should be related directly to the needs and objectives of an organisation. A knowledge of the standards of performance makes learning effective. Learning is active. People learn more by doing than by hearing alone. Early success increases an individual’s chances for effective learning. and not passive. 12) Learning is closely related to attention and concentration. biases. Some of these are described below: 1) 2) 3) 4) 5) 6) 7) 8) Every human being is capable of learning. An individual’s reaction to any lesson is conditioned and modified by what has been learned by him in earlier lessons and by previous experience. 2 6 15) Trainees learn better when they learn at their own pace. To be effective. An adequate interest in and motive for learning is essential because people are goal-oriented. 14) Learning to be successful should be related to a learner’s experiences in life. People learn more and faster when they are information of their achievements. likes and dislikes. . the training must use tested principles of learning. 9) 10) Effective learning results when initial learning is followed immediately by application. Learning is a cumulative process. Time must be provided to practise what has been learnt.Human Resource Development 1) What do you want and hope to accomplish through training? 2) Who is responsible for the training function? 3) Should the training be formal or informal? 4) What are the training priorities? 5) What types of training is needed? 6) When and where should training be given? 7) Should training be continuous or casual? 8) How much should the employees be paid during training? 9) Which outisde agencies should be associated with training? 10) How should training be related to labour policy? D) Principles of an Effective Training Programme A successful training programme should be based on the following principles: 1) The objectives and scope of a training plan should be defined before its development is begun. in order to provide a basis for common agreement and coopertive action. Training should be conducted in the actual job environment to the maximum possible extent. 2) 3) 4) Principles of Learning Certain principles are followed for developing effective training programmes. 11) The rate of learning decreases when complex skills are involved. 13) Learning is more effective when one sheds one’s half-knowledge. prejudices.

They have to cope with the increasing demands of the enterprise in which they are employed and to develop team spirit among people under their charge. Supervisory staff constitute a very important link in the chain administration. a) On-the-job-Methods Under these methods the principle of learning by doing is used. Training is given by more proficient workers. e. The objective here is to secure reduction in cost of production and waste. demonstrations. machine operators. It may be given either in the section or department of the worker or in segregated training shops. etc. while practical work is conducted on the production line. etc. Unskilled workers are given training in improved methods of handling machines and materials. Skilled workers are given training through apprenticeship in training centres or in the industry itself. It is often used to train clerks. tape recorders. going through a step-bystep explanation of the ‘why’. depending upon the training requirements and the level of people to be trained. or a combination of any two or more of these can be used. bosses or inspectors. The trainee works in closely ‘duplicated’ real job conditions. Training for Different Employees The employees who are to be trained can be different types and each type would require a different type of training. in handling customers. Demonstrations are often used in combination with lectures. A variety of training aids and techniques are used such as procedure charts. might result in serious injury. It aims at developing skills and habits consistent with the existing practices of an organisation and by orienting him to his immediate problems. This is essential in cases in which actual onste-job practice is expensive. Simulation: It is an extension of vestibule training. All training methods can be broadly classified as (a) on-the-job-methods. etc. These methods are briefly described below: 1) On-the-job Training: An employee is placed in a new job and is told how it is to be performed. ‘how’ and ‘what’ of what he is doing. The principles and theory of a job must be taught by some other methods. lecture manuals. and to prepare them for assuming greater responsibilities at higher levels of management. sample problems. A training programme for them should aim at helping the supervisors to improve their performance. and (b) off-the-job methods. pictures. inspectors. typists. discussion. Coaching and instructing is done by skilled workers. in aeronautical industry. text material. rationalisation and technical processes. Training 2) 3) 4) 2 7 . oral and written explanations. Vestibule Training or Training-Centre: It involves classroom training imparted with the help of equipment and machines identical to those in use at the place of work. Demonstration and Examples: Here the trainer describes and demonstrates how to do a certain work. planning their work. Salesmen are trained in the art of salesmanship. The emphasis under this method is on know-how. He performs the activity himself.g. Theoretical training is given in the classroom.E) Training Methods Various methods of training have been evolved and any one method. and facing challenges of market place. bank tellers. Semi-silled workers require training to cope with requirements arising out of adoption of mechanisation. Training is given on the job itself. or by special training instructors. by immediate superior officers. by supervisors. a costly error or the destruction of valuable material or resources.

and decide for themselves the best solution. Conferences may include Buzz sessions which divide Conferences into small groups of four or five for intensive discussions. say 20-30 persons. This method is ideally suited for analysing problems and issues. role-playing. reducing dogmatism and modifying attitudes. trades and technical areas. an outside place owned by the organisation. They can develop sensitivity to the thoughts and feelings of individuals.g. and ensure a general consensus on points without forcing agreement or side-stepping disagreements.. The members of the group come to teach each other and to learn together. a real (or hypothetical) business problem or situation demanding solution. They should also control the more verbose members while bringing out the more reserved.Human Resource Development 5) Apprenticeship: A major part of training time is spent on the on-the-job productive work. film shows. specially when proficiency in a job is the result of a relatively long training or apprenticeship period. it is suitable only for a small group of. The lectures are supplemented with discussions. Each apprentice is given a programme of assignments according to a predetermined schedule which provides for efficient training in trade skills. because a larger group often discourages active participation of all the conferees. 3) Seminar of Team Discussion: The group learns through discussion of a paper on a selected subject. a mechanic. is presented to the group and members are trained to identify the problems present. summarise material at appropriate times during a discussion. These are essential when technical or special information of a complex nature is to be imparted. Mutual problems are discussed and participants pool their ideas and experience in attempting to arrive at better methods of dealing with these problems. attitudes. Location of this training may be a company classroom. which is not a part of the company. analyse each one of these. The paper is written by one or more trainees. a printer. etc. etc. e. This method promotes 2) 4) 2 8 . a tool maker. they must suggest various alternatives for tackling them. and examining them from different viewpoints. job of a craftsman. This method is appropriate for training in crafts. These small groups report back to the whole group with their conclusions or questions. These methods are: 1) Lectures: These are formally organised talks by an instructor on specific topics. The material to be analysed is distributed in advance in the form of required reading. Discussion may be on a statement made by the person in charge of the seminar or on a document prepared by an expert. a conference is held in accordance with an organised plan. theories and problem solving have to be discussed. However. a pattern designer. It helps in developing conceptual knowledge. The lectures can be used for a very large group to be trained in a short time. The trainer only guides the discussion and in the process ensures that no relevant aspect is left out of discussion. find out their comparative suitability. a machinist. They should be good stimulating leaders who can adopt a flexible attitude and encourage members to express themselves without fear. an education institution or association. Under this method the conferees should have some knowledge of the subject to be discussed. This method is useful when philosophy. and adequate time is spent on each aspect. case studies. b) Off-the-job or Classroom Methods Training on the job is not a part of every day activity under these methods. concepts. Case Discussion: Under this method. The Conference Method: Under this method.

................ ....analytical thinking and problem-solving ability.... ................ each building upon what has gone before.................................. ............. .......... it enables trainees to become increasingly aware of obsecurities. Activity B Find out about the various training programmes used in your organisation................ There are no written lines to be said and..... ......................... . Employees for whom used .................. respecting others’ views and integrating the knowledge obtained from different basic disciplines............................. firing. Two or more trainees are assigned roles in a given situation........ It is a method of human interaction which involves realistic behaviour in an imaginary or hypothetical situation.... This programme may be carried out with a book................................... ............ ..... It is primarily used for teaching factual knowledge such as Mathematics............................................ ................. The role players have to quickly respond to the situation that is ever changing and to react to it as they would in the real one...... no rehearsals.............................. This method is extensively used in professional schools of law and management................ Training F) Responsibility for Training If you have realised that training is quite a stupendous task........ Physics................................ .. disciplining a subordinate... ........ ........... 5) Role-Playing: This method is also called ‘role-reversal’.......... ..... ....... ‘socio-drama’ or ‘psycho-drama’............. etc................................. What it seeks to accomplish ....... conducting a post appraisal interview........................ .............. you are right in your thinking.... ........................... ..... a manual or a teaching machine.......................................................... Role playing primarily involves employee-employer relationships......... ......................... ..... Incidentally.............................. . patient listening............. naturally............... ........ contradictions and uncertainties encountered in a business............... as also the types of employees for whom each is used and what it seeks to accomplish......... 6) Programme Instruction: This involves two essential elements: (a) a step-by-step series of bits of knowledge.... hiring. and in supervisory and executive training programmes in industry.... ..... ......... which cannot be done by one single department......... 2 9 .......... or a salesman making presentation to a customer.... Write these below: Programme 1) 1) 2) 3) 4) 5) 6) 7) 8) 9) 10) ................... . ............ It encourages open-mindedness... and (b) a mechanism for presenting the series and checking on the trainee’s knowledge................. ........................... Questions are asked in proper sequence and indication given promptly whether the answers are correct........... .................................... Here trainees act out a given role as they would in a stage play.. ......... which is explained to the group.. ..................................... discussing a grievance problem.......................................................................................... ..............

l l l 13. establish and evaluate instructional programmes. revision and suggestions for improvement in the programme. the following points may be kept in view: 1) Wherever there are sizeable number of people having the same training needs. The supervisor who should implement and supply the various developmental plans. In large companies it is possible for the training department to organise several in-company training programmes. who should provide feedback.5 A SUGGESTED TRAINING SYSTEM After identifying the training needs. Besides. Training managers or organisers are also concerned with this question. 2) 3) 4) 5) 6) Most companies do not inform the employees why they have been sponsored. 3 0 . The organisation can save a lot of cost. have been concerned with the difficult but critical question of evaluation. review and approve the broad outlines of training plans and programmes. it is advisable to organise an in-company programme. The personnel department.6 EVALUATION OF TRAINING Many organisations. Whenever an individual is sponsored for training he should be told categorically the reasons for sponsoring him and the expectations of the organisation from him after he returns from the programme. For designing the training programme on the basis of the training needs. but no satisfactory and comprehensive accounts of evaluation are available. which should plan. total responsibility for training has to be shared among: l The top management who should frame and authorise the basic training policies. the next step is to design and organise training programmes. by having the group of people from the same work place mutuality can be inculcated. The training department should play a dynamic role in monitoring the training activities. and approve training budgets. such a practice reduces learning.Human Resource Development In fact. Employees. 13. People performing responsible roles in the organisation should be encouraged to go out periodically for training where they would have more opportunities to interact with executives of other organisations and get ideas as well as stimulate their own thinking. Whenever new systems have to be introduced training is needed to develop competencies needed to run the systems. It is better to aim at in-company programmes for technical skills wherever possible and outside programmes for managerial and behavioural development. especially industries. It should continuously assess the impact of training and help the trainees in practising whatever they have learnt. as the employees sponsored are more concerned about the reasons for being sponsored than actually getting involved in and benefiting from the training. All books on training have dealt with this issue. The probability of the trainees actually applying what they have learnt is high because of high group support.

should constitute an important element. the ultimate user and financier of training (O) Literature on training evaluation has not paid due attention to this respect. Reaction evaluation can be of contextual factors. We may thus have four main dimensions of evaluation: evaluation of contextual factors (C). There are four main partners in training (and clients for evaluation): 1) 2) The participants or learners (P) The training organisation or institute (I) including a) b) c) 3) 4) Curriculum planners (CP) Programme designers (PD) Programme managers (PM) Training The faculty or facilitators or trainers (F) The client organisation. Their needs for feedback and use of feedback for improvement (control) will naturally be different with some overlapping. training methods. therefore. and reaction. and the latter to the main dimensions and specific areas of evaluation. The climate of the training organisation. the relationship between participants and trainers. with some sub-areas under each. Evaluation of the training process. 3 1 . B) Dimensions of Evaluation Attention has been given to the main dimensions of training. evaluation of training inputs (I). A) Main Clients There are several partners in the training act and process. and most of the suggested models are based on these. The basic question in this regard relates to the value of evaluation: why evaluate training? Hamblin has discussed this question very well—that evaluation helps in providing feedback for improvement (and better control) of training. When we discuss feedback and improvement.. In all discussions of training evaluation the most neglected aspect has been the training process which cannot be covered by training inputs. Two additional questions are: how should evaluation be done? What specific ways should be adopted for it? These questions relate to the design and techniques of evaluation. and outcomes of training. respectively. etc. the exhibit also shows the conceptual model of training. C) Areas of Evaluation The various areas of training evaluation need more attention and elaboration. training inputs. outputs. two relevant questions are raised: feedback to whom? Improvement of what? The former question relates to the main client groups. and all of them are the client of evaluation.For the preparation of a comprehensive conceptual framework of training evaluation and an effective strategy of evaluating training programmes and system. The last dimension is not in the same category as the other three. the general attitudes and approaches of the trainers. and evaluation of training outcomes (O). by relating the areas to the dimensions. Four main dimensions have usually been suggested: contexts. Seven main areas. are suggested for consideration. are very important aspects determining the effectiveness of training. These are shown in Exhibit 1 in sequential order. This model is based on the following assumptions. inputs. evaluation of training process (P). it is necessary to consider several aspects of evaluation.

Hence evaluation should provide the necessary feedback to these for contributing to training effectiveness. Various aspects of the training process that are not direct training inputs (for example also contribute to its effectiveness. but also on what happens before the actual training (pre-training factors) and what happens after the training has formally ended (post-training factors). 2) 3) 3 2 .Human Resource Development Exhibit 1 : Coverage of Evaluation Area of Evaluation 1) Pre-training Factors a) Preparation b) Learning Motivation c) Expectations 2) Training a) Curriculum Including b) Specific Events c) Specific Sessions 3) Training Management a) Areas of Satisfaction/Dissatisfaction b) Training Facilities c) Other Facilities 4) Training a) Learning Climate b) Training Methods (Pedagogy) c) Trainer Team Effectiveness 5) Participant Development a) Conceptual Development b) Learning of Skills c) Change in Values/Attitudes d) Change of Behaviour e) Application 6) Organisational Development a) Job Effectiveness b) Team Effectiveness c) Organisational Effectiveness 7) Post-training Factors a) Cost b) Organisational Support c) Organisational Factors Hindering or Facilitating Use of Training 1) Dimension Context Events Context Process Outcome Outcome Context Effectiveness of training depends on the synergic relationship and collaborative working amongst the four major partners of training (participants. training organisation. trainers and client organisation). Evaluation should. also focus on these factors. Training effectiveness depends not only on what happens during training. therefore. Evaluation cannot neglect these important contextual factors.

In the latter case. Evaluation may be made to find out what changes have occurred in terms of scope. Hamblin has referred to some of these. Evaluation designs can be classified in various ways. and making it a “blind” study investigators not knowing which group is of what category). These methods give us four basic designs of evaluation. Evaluation may be used as part of the training process to provide feedback and plan for using feedback. in addition to the group exposed to training. E) Evaluation Techniques These can be classified in various ways. usually on several occasions. i. the purpose of evaluation will began on the main clients of evaluation and what they want to know. another with a different type of treatment. and the third with no treatment. it is called “before-after” design. matched on some significant dimensions with the group being exposed to training.. 3 3 . but at least twice. and later again. Data on relevant aspects may either be collected only once after the training is over. there may be different objectives of evaluation. or groups involved in evaluation (or data collection). He makes a distinction between the “scientific” approach (rigorous evaluation to test hypotheses of change) and the “discovery” approach (evaluation to discover intended and unintended consequences). substance and sustenance in the letter case. and data can be collected from both. There can be variations in the degree of sophistication and rigour. after the training is over.4) The focus or the main task of evaluation should not only be in the nature of auditing (measuring training outcomes in terms of what has been achieved and how much). but should also be diagnostic (why the effectiveness has been low or high). combined with E and L designs. But in many practical situations this is reality. The design can be made very sophisticated with several matched groups (one with training “treatment”. before and after training. Training D) Design of Evaluation The overall design of evaluation helps in planning the evaluation strategy in advance. but not in a systematic way. this design has inherent limitations in drawing conclusions from evaluation. This distinction does not serve any purpose and is. data are collected from the group which has been exposed to training only after the training is over. One way to classify them into response (reactive) techniques (R). the design will be more complex and more sophisticated. are the time when evaluation is done (or data are collected). Both experimental and quasiexperimental designs can be used. Techniques requiring some kind of response produce some reaction in those who are responding. In this design also there is no control and there are limitations in drawing conclusions. Since they produce reactions they are called response or reactive techniques. Also. As already discussed. On the other hand. once (ex post facto) or several times (longitudinal). only one or more group that undergoes training may be involved in evaluation. can be identified. Another group. The very act of asking people questions (orally or in a written form) may produce change. matched sampling can be selected for a comparative or cross-sectional survey. in fact. Enough literature on these designs is available. misleading. and is a challenge for evaluation designers to devise ways of extracting the most in such a design. The design with a great deal of control and sophistication is the matched group design (M). Obviously. or on two (or several) occasions before training interventions. however.e. and the group. Several variations of this design can be used. Or. Comparative survey design (S) may involve collection of data from many other groups. In ex post facto design (E). and remedial (how effectiveness can be raised). Two important dimensions. Longitudinal design (L) is one in which data are collected from the same group over a length of time .

Ultimate Value: Cost-benefit analysis and human resources accounting. and work flow studies.’ There is no reason to consider such measures as unethical. are such measures. studies of organisational climate. Whitelaw has also cited some studies but has not been able to integrate them. which may be unethical. observation of specific incidents. etc. The three well-known scaling techniques associated with Thurstone. This applies as much to responsive techniques as to unobtrusive ones. written reactions (questionnaires. is unethical. standardised tests of skill. scales. indexes. The method of data collection for response or reaction techniques (R) may include interviews. assessment by trainees of skill changes. and Guttman. observers’ records. In many cases. depth interviews and questionnaires. For example. thereby expressing his disapproval of such measures. Similarly. postreactions questionnaires and interviews. Job Behaviour: Activity sampling. At the end of his book.Human Resource Development Other techniques can be called unobtrusive measures or secondary source data technique(s). and prescription for involving management in the training process... open-ended depth techniques. and expectations evaluation. and group feedback analysis. essay-type written or oral examinations. discussion by a small group consisting of individuals having experience and with a adequate knowledge about it may give better evaluation results than figures calculated from routine responses. All indicators. tailor-made techniques for evaluating skill. self-diaries with interview and questionnaires. if some data are collected about individuals’ behaviour (whether by asking others or unobtrusively) without their knowledge and approval. Observation can also become a reactive technique if persons being observed know that they are being observed. studies of inter-trainee relationships. use of job behavioural objectives to study behaviour of non-trainees. assessment by trainees of knowledge changes. (1970). His book will be found very useful for this. and projective techniques. critical incident technique. an unobtrusive measure or secondary source data may be much more creative and imaginative and need to be discovered and used more often for evaluation. to measure whether general morale has improved in a unit. objective tests. tailor-made attitude questionnaires. SISCO and Wirdenius techniques. Various methods of scaling can be used to develop effective evaluation techniques. the word “unobstrusive” being borrowed from Webb et al. labour turnover. because collecting information from a third person without the approval or knowledge of the person being studied. One additional method in this category worth mentioning is group discussion and consensus report. Hamblin calls them “keyhole” techniques. semantic differential scales. However. is that of observation (O). Likert. standardised attitude questionnaires. Hamblin has summarised the various techniques discussed under his five-level model. Hamblin has done as excellent job in discussing the studies in training evaluation to illustrate the techniques used. end-of-course reaction form. observers’ diaries. appraisal and self-appraisal. Reaction Session: Reaction scales. Organisation: Indexes of productivity. open-ended forms). Techniques based on well-prepared instruments to measure various dimensions are being increasingly used. 3 4 . Advances in scaling techniques have made the greatest contribution to the development of evaluation techniques. Learning: Pre-course questionnaires to instructors. skill and task analyses. More recent developments have opened new vistas for sophistication in evaluation work. Another non-reactive technique. can be imaginatively used in preparing new evaluation tools. a very old one. reactions notebooks and participation. etc. it may be more useful to use secondary source data like examining figures of absenteeism rather than asking questions. These make use of available data or secondary source data. programmed instruction.

were taken up for evaluation. As part of the evaluation study. In addition to questions on various aspects of the role of branch managers and the KRAS. retraining is focused on rank-and-file workers.8 SOME ISSUES IN TRAINING 3 5 Improvement of training in organisations requires paying attention to some critical dimensions. Management programmes were organised by the State Bank Staff College for rural branches. external service. Workers require refresher courses to help them recall what they have forgotten and to overcome some practices they have come to accept as satisfactory. These have been analysed into the performance process and performance results. and interpersonal orientation (FIRO-B). . Training 13. This is true of employees at every level in the organisation. Eight programmes. and post-training stage (assessment whether the gaps were filled). Training Evaluation System: Branch Manager Programme-A Study on the Impact of Training on Branch Managers. and work methods. the framework of evaluation has been stated in the beginning emphasising: pre-training stage (performance gaps). urban/metropolitan branches. some psychological measures were also included: working in the organisation. Key Responsibility Areas (KRAS) of the branch managers have been identified as follows: business. Written questionnaires were used and interviews were conducted. The need for retraining also arises as a result of technological changes resulting in changes in equipment. including pre-training work. curriculum development. This is so because their number is large and technological change makes its immediate impact on those who work closer to technological resources. It is the tendency of the individual worker to become outdated in terms of job requirements.7 RETRAINING Retraining programmes are designed as a means of avoiding personal obsolescence. The role of training for development of people and organisations has been discussed separately in detail. job related items. However. for the post-training stage the figures were 51 and 56 per cent respectively. completed between October 1976 and April 1977. In the study. quality of advances. 13. both participants and the “controlling authorities” were approached. They also need to bring them with respect to relevant new knowledge and skill. and agricultural development branches. This is one of the several reports the State Bank Staff College is planning to bring out on their programmes. In order to measure the impact of training on various aspects. About 206 branch managers from various circles of the bank had participated in these programmes. training stage (training design). and staff relations. Illustration 1: An Illustration of Systematic Evaluation A good example of systematic evaluation is available from a study of the State Bank Staff College (SBSC) titled. industrial branches. tools. It was very encouraging to note that 92 per cent of the participants and 85 per cent of the controlling authorities responded to the study at the pre-training stage. Besides they are less equipped to foresee their personal needs and because they require more assistance in advance planning than do others.An illustration of systematic evaluation has been given in Illustration 1. The objectives of the training programme have been analysed in relation to these areas. In this report they have taken the branch management programme for evaluation. leadership style (Fiedler’s LPC scale). internal administration.

i) ii) Authentic and open system of training institution or the place of learning. etc. The training section needs to help the concerned managers to plan to utilise the participants’ training. learning has been defined as “the process of acquiring. vii) Opportunities to practise the skills learnt. building expectations of prospective participants from training. including the rationale and criteria of who (which role occupants) should be sent for training. and provide the needed support to them. 3 6 . building a training establishment and post-training support and follow-up (Lynton and Pareek. xi) Emphasis on learning through discovery. training cannot succeed in developing people. For this purpose. vi) Mechanisms for supportive and quick feedback. 1) Learning The main function of training is to facilitate learning. Below are suggested 15 different conditions to make learning effective. x) Opportunities for and support to experimentation. Follow-up work by the training section is critical. xii) Indirect and liberating influence by trainer/teacher through minimum guidance. The most effective learning is self-initiated and self-managed learning. learning by discovery is more internalised and is longer-lasting than didactic learning from others. xv) Trainer’s/teacher’s competence. xiii) Trainer’s/teacher’s human values and faith in man. 3) Post-training Work Equally important is what is done after the training is over. 2000). ix) Opportunities for and encouragement to self-learning.Human Resource Development selection of methods. and leading to enhanced capability of further self-monitored learning”. xiv) Trainer’s/teacher’s high expectations from learners. However. Non-threatening climate. pre-training workshop in some cases to raise the level of motivation of participants and finalise the curriculum. in what sequence. and openness to examine own needs. assimilating. and organisations: proper identification of training needs. Post-training work helps in building linkages between the training section and the line departments. viii) Opportunities to apply learning. how many at a time and. v) Organisation of graduated experiences of challenging successes. In general. motor or behavioural inputs for their effective and varied use when required. and internalising cognitive. iv) Collaborative arrangements for mutual support of learners. the process of helping people to volunteer. Training should help in developing a culture of self-managed learning. 2) Pre-training Work Unless attention is paid to the following pre-training work. a few important dimensions which require special attention in organisations are discussed here. groups. and the departments to ask for training. developing a strategy of development of people through training. iii) Challenging learning tasks.

There are. But it is still worthwhile. one gets the impression that they do not have enough opportunity in the organisation to innovate and suggest ways of developing it. While talking to persons in charge of training in various organisations. calculating contribution. Unfortunately. time and energy. In fact. new training materials need to be developed.9 THE PRESENT STATUS OF TRAINING Training is not fulfilling its proper role in various organisations. etc. basic financial problems. But this is also true of the in-company training function. The role of the wife in the feudal society was to decorate the home and bear children. Moreover. Self-instructional packages and manuals of various kinds can be very rich and useful resources of training. it merely responds to requests made to it. by using the classroom model of training. and self-instructional material. If a selfinstructional book is prepared on this subject. and self-instructional materials. etc. the following five reasons for the plight in which training is at present. etc. 1) Call-girl Role The training unit organises training events on the initiation or suggestion of the persons who matter in the organisation. but not necessarily be a life partner in enjoying life. or even to give one or more talks on specific topics. but should also include other ways of providing information and giving necessary skills to people in an organisation.4) Expanding the Training Concept The concept of training has to be widened and training should include not only programmes involving face-to-face classroom work. role play cases and material. the organisation cannot afford to provide the necessary information and skills on all aspects to all those who need it. new environmental changes.. It may. This essentially reduces its effectiveness. most of the training programmes use only the lecture method. tests and instruments. at least. be recommended that a list of areas in which such self-instructional material can be prepared should be developed. and will have much higher pay-off than the cost of the investment. getting people together in a group for giving information which can be given in some other form is a waste of resources. leave rules. cases and incidents. especially simulation exercises and games. Preparation of such material involves large investment of money. In some cases an organisation can get help from outside experts in the preparation of such material. cases. Training plays a reactive rather than a proactive role. Training 13. therefore. Instead of being a partner in the process of development of the organisation. While the lecture method itself needs improvement through use of small group discussions. various personnel practices. may also be prepared. These will include simulation exercises and games. manuals of simple office procedures. the immediate superior officer may help the employees by calling them for dialogue and further clarifications after the employees have learnt through such self-instructional books. However. this can be given to anyone who joins the organisation so that he gets familiar with this concept and can understand the whole process of all the negotiations taking place in the company. all those who join the organisation should know about the budgetary processes and the concept of transfer price. 5) Preparation of Training Materials There is a great need to develop more training materials. This plight is largely shared by the outside consultants and trainers who are invited to do a particular training programme. or sharing 3 7 . even without collecting people at one site. This may include the new sales tax rules.. role plays. So far training has been treated either as a feudal wife or as a call-girl rather than a modern housewife. Similarly. practical work manuals. For example.

it is unfortunately given rather a low status. however. is not involved in any vital decisions taken by the family. Training therefore is often regarded as a useful but not a very essential activity in the organisation. 3 8 . but by determining these needs and being a partner in the process of development. On the other hand. often to be merely heard and not necessarily acted upon. Training has to become comparable to a real housewife. In many organisations training is more decorative than functional. As a result. In some cases the transfers of people to the training units and back to operations were very frequent. it has developed its own techniques. and since it is treated as a service department. Although it has not been completely professionalised. and cannot operate with confidence. However. Similarly. The low status of training is reflected in the level at which the TM is being recruited in the organisation. only responding to the various demands of the organisation. Discussions with persons in various parts of the organisation revealed that they were recommending or nominating those persons for appointment as trainers whom they did not find very useful. The family priest mainly helps in the performance of religious rituals appropriate to the caste of the family. while in some organisations training performs the role of the family priest. marketing. Some organisations start a training department in order to look modern. This concept of training as a non-essential or a peripheral activity produces several effects in the organisation. and is fast emerging as a profession. limits its effectiveness considerably. Low status of training. Those who were not trainers were not given any orientation or training before being made to take up their new roles as trainers. in Indian organisations status and grade play an important part in deciding how much say a person would have in the organisation. people appointed to manage training may not have the necessary professional skills which TMs would be required to have. Such practices reflect the attitude of the management towards training. Other functions such as production. A call-girl is invited when she is needed and she also does not participate in the vital decisions of a man’s life. In most organisations he is at such a low level that it becomes difficult for to him assert himself and to be heard with respect. the status is also a function of the activity being central. they do not take it seriously. He. Unfortunately. Unless training is treated as a partner in decision making. training is not able to fulfil the obligation of being really effective in an organisation. 3) Low Status Since training is regarded as peripheral. This is a vicious circle. and compared to these functions training is only of secondary importance. In some cases those who are found to be less efficient and effective in other functions are transferred to the training function. Training is seen as a function which can be managed by anyone who is good in the main activity of the organisation. The personnel connected with the training activity have a low self-image. and finance are very central and important. personnel. It produces a different sense of priority for training in the organisation. it cannot play the role of contributing to organisational effectiveness. taking either analogy. The example is cited of one organisation in which the training system is fairly large. This role is enjoyed by the training sub-system also. No activity can become central in an organisation unless the organisation expects that activity to be important and gives it high enough status. organisations in India still do not treat training as a profession. therefore. He also gives pious advice. 2) Expectancy of Peripherality By and large there seems to be a general feeling in the organisation that training is a peripheral activity rather than a central one. in fact. 4) Non-professional Image Training is becoming a profession. by not only responding to the needs of the organisation.Human Resource Development problems.

However. It should be possible to show how training is helping the organisation in reducing various kinds of wastage. the top management agreed for a more systematic work of diagnosis and a possible OD effort. its own techniques. We suggest at least two such important roles: Firstly. are responsible is the slow speed with which we are professionalising training in India. training personnel can educate the top management through a series of systematic feedback from the data generated during the training programmes. Training has to become more proactive. and their behaviour so different. The organisation evaluates the various inputs in terms of cost-benefit ratio. To make training an effective intervention or organisational change. Secondly. as successfully done by one organisation. Training 3 9 . Such a proactive role requires authenticity on the part of the trainers and consultants. It is necessary that it is transformed into a more active and effective tool for helping the organisation solve some of its problems. Training can either be expanded or formally transformed into organisational development. As a result of this discussion. It develops its own skills of working. and its own standards of ethics. The establishment of the Indian Institute of Management and the Indian Society for Training and Development has helped in developing training as a profession. those who are in the field of training. Training can be a good diagnostic tool also-the first step in a strategy of organisational change. that they project a weak image of training. They only respond to the needs of the organisation. Each profession has its own system of preparation of those persons who want to join it. one organisation hired consultants for a specific programme of achievement-motivation training. Training has to be professionalised at a faster rate. training can be used as an entry point for further organisational work.5) Slow Professionalisation One factor for which we. After the first programme. The top management in that organisation have increasingly asked for more advanced programmes for their own education. For example. Such an evaluation of training in hardware terms will increase its credibility and boost its self-image. the consultants had discussions on their understanding of the problems. Because of these and some other factors the role of training has remained rather peripheral. Training. the development of skills of collecting and meaningfully using relevant data for decision making and for recording the experience for possible sharing with others is very essential. We need to do a great deal in developing training as a profession. It develops a strong pressure group to ensure that the minimum standards of pre-professional and in-professional training are maintained. rather than thinking of ways of transforming their role into a more central one. Even without such transformation training can begin to play a more proactive role. Training can play a more effective role in the organisation if it is regarded as one intervention in a larger context in which several interventions precede or follow it. it may be helpful to have a dialogue with the management. If they feel that some intervention other than training may be more useful. It may be useful for the training unit to increasingly develop evaluation systems in cost-benefit terms. like any other activity in an organisation. One of the skills that we lack is the use of rich data generated during training and collected in the follow-up work. the aspirations of training personnel are so low. is meant to help in the achievement of the organisational goals. and recommended to the top management to look into the various other aspects of the organisation. One of their roles is to confront the senior management with the understanding of the problem and help it to be aware of a variety of interventions for the solution of problems.

4 0 . while the futuristic perspectiveis strategic. may imply elitism in training. we get four training modes as shown in Exhibit 2. research should be functional for facilitating organisational change and these skills are necessary for the successful implementation of the programme of organisational development. need not have this kind of expertise. The movement is in the direction of training becoming more proactive. it is equally important that the strategy for supervisory and operational training is streamlined. data processing and interpreting the data. such as organisational diagnosis. according to various types of organisations. One or a few organisations can coordinate and provide this kind of expert help. Such a centre can serve the Indian organisations in publishing consolidated annual reports on general trends in the country. Repositioning does not mean taking an “either or” position. of training. and evaluation and follow-up plans. some institutions can develop a survey and data feedback centre. In fact. determining technical and behavioural needs for their effective role performance. All organisations. This swing is sometime seen as abandoning the previous position and taking a new one. Such training also needs a wider perspective. and can analyse data and provide confidential reports on the various aspects of organisational health and effectiveness. attention to the method of receiving and inducting the new employees in the organisation. In a recent study of HR reiengineering at 34 large US companies 69% respondents mentioned “repositioning of HR as a strategic business partner with the management” as a re-engineering goal.10 MAKING TRAINING A STRATEGIC FUNCTION Turnaround in thinking on training is already evident . Repositioning involves expanding the role and emphasising the strategic role. It can make available meticulously standardised devices for diagnosis and organisational survey. innovation for organisational change. If we combine these two dimensions. In order to utilise the rare skills in these areas. some agencies should be persuaded to undertake the responsibility of developing strategies of and providing help in data collection. Training should attend both to the current as well as the future needs. providing these services at reasonable cost. While the strategic role is important. including ways of building posttraining support for achieving training goals. from being a service function to partnership in the main task of the organisation. While the former emphasises the development of specific competencies. 13. So far the approach of training has been to offer/organise training for specific competencies. problem solving. The other dimension relevant for the role of training is that of content vs process. For example. data collection. etc. interpretation and feedback for organisational development.Human Resource Development The increasing professionalisation should reflect in the training of the personnel of the OD units in various kinds of skills. the other roles are not to be neglected. ways of enhancing teamwork and inter role support. The current perspective is more operational. Training is concerned with increasing organisational effectiveness. It may be useful to take help from some agencies for developing such skills. the latter is concerned with developing learning and empowering capability. variety of training inputs and their sequencing to meet the training needs. however. While we may plead for this transformation. The same is true of training. and contribute to strategic thinking of the organisation. The suggestions of transformation of training into organisational development.that it must move from periphery to the centre.

for these four training modes. This can be done if the trainers advance with their research competencies into a consulting role 4 1 . will require more group process-orientation of trainers. rather than only on individual role effectiveness. need to develop their deep insight into organisational needs and process. and developing them. thereby enhancing effectiveness of each member. taking the four main roles of training. However. Exhibit 3 : Training Modes in Details Training Content Concern Consulting Process Focus Objective Posture Teams Synergy (Team Building) Help Change Management Leadership Transformation Partner Focus Objective Posture Current Role Role Effectiveness Implement Research Multiple Roles Org. especially those of action research. Trainers should develop research competencies. Research Role: In order to move in the strategic direction. The emphasis is synergy building. Exhibit 3 shows the foci. and postures. We shall briefly discuss these. The trainers should deliver good training. And to do this they themselves must have the relevant technical competencies. The trainers. a person should develop flexibility to perform various roles.Exhibit 2 : Training Modes PERSPECTIVE Training OPERATIONAL CONTENT Concerns PROCESS CONSULTING TRAINING STRATEGIC RESEARCH CHANGE MANAGEMENT All the four modes of training are important. Since the narrow boundaries of roles are breaking down. objectives. trainers need to search what competencies are needed and will be needed in the organisation. increasingly training must move towards transformational and strategic roles. Effectiveness Provide input Training Role: Training system should develop needed competencies for various role occupant. This becomes the first essential step for developing autonomous work groups and self-managed teams. Development of effective teams influence both the effectiveness of the individual team members as well as organisational effectiveness. The emphasis is on making the current roles in the organisation more effective by equipping people occupying these roles with the needed competencies. Training then assumes two more functions: searching future competencies. Training takes current strategy and implements it in terms of development of needed competencies. Multi-skilled workers is a good example of such effort. Consulting Role: Greater emphasis on organisational effectiveness. who function as researchers.

to make paradigm shift if needed. and preferred ways of doing so. competencies to be developed (in what thrust. human resources. Regarding HR. and empowering others. for example. and making training a strategic partner. the organisational tasks must be translated into various functional terms: marketing. when teams are set up to discuss training issues etc. if cost reduction is one of the elements in the business strategy. Another way to translate business strategy into training terms may be to develop strategies for key decisions taken by the organisation. Working More Closely with Line Managers People dealing with training should work more closely with line people. strategy planning for the departments etc. line people should be invited as members. This is not possible without involvement of the trainers in the main business of the organisation. Training goals get closely linked with business goals. This helps to make strategy formulation and implementation participative. I’d build HR strategies directly into business strategies and make them seamless”. training people should join these. When cross-functional task forces and implementation teams are set up. taking responsibility. Training strategy thus prepared may be reviewed by all the functional leaders preparing the strategies which must be integrated into the main strategy for better synergy. The focus of training is to develop leadership at all levels in the organisation . training. evaluation etc.the ability of strategic thinking. counseling. Training function should be used more frequently for international consulting. The overall organisational or “business” strategy should provide the framework for developing the training strategy to facilitate effective implementation of the strategy. This is one step further in contributing to the strategic process. for successful implementation. For example. help in implementing the agreed action plan. Similarly. Trainers then will also develop more hand-on experience. Training is then seen as a useful function for developing organisational strategy. It will include detailed approach to be adopted. and consulting competencies to play this role effectively. one participant in the study said “If I had to do it again. Training then becomes a true strategic partner. Such close working together may help in integrating training with the various business groups. creativity to find alternative solutions. Business strategy indicates the broad direction for the future movement of an organisation. Rosow and Zager have made some recommendations to forge stronger links between training and business strategy (Exhibits 4 and 5) 4 2 . By maintaining an independent strategy. Trainers should develop both sharper understanding of the organisational strategy. training may send a signal that is not connected with the other functions. The objective is to transform the organisation. financial.. and gaining relevant business knowledge. develop and use interventions involving concerned line people to deal with the problems. In a study of 34 large US companies. and support it to stabilise the decisions.Human Resource Development analyse problems. Change Management Role: This is the real strategic partnership role. They are already working with line people in the areas of coaching. training etc. training may develop ways of advancing this concern and achieving concrete results. 78% HR professionals listed “cost reduction” as a top goal. which will make training more realistic and relevant. Translating Business Strategy into Training Terms Successful implementation of the business strategy of an organisation will require some competencies. technology.

institutions for continuous learning. and how it can implemented faster. and should make them function as such.The partnership in training should be based on value-added partnership of the trainers and training system. work unit. whether the position is within or outside the firm. The CEO should regularly monitor the training function to ascertain that (1) program priorities match those of the corporate strategy. As strategic partners training people should raise serious discussion on how organisational strategy should be developed. competition. employers should invite the unions to share in the design and administration of training for their members. therefore. to ensure that: l Training Strategic goals are realistically ambitious with respect to the reservoir of skills that will be available to meet them The training function will be able to help top management communicate corporate strategy throughout the organisation and to help managers translate the strategy into training needs. The training plan should distinguish clearly between (1) tactical programs designed to meet current needs.and even anticipate-changes in technology. (2) program cost and skill objectives are valid. When an employer invites an employee to be retrained. (2) are recommended by (and. l 2) The vice -president for the training function should ensure that all training programs (1) are necessary to the corporate strategy. and work-force standards. to ensure that all levels of the organisation will have the knowledge and skills to carry out the strategic plan. Exhibit 4 : Making Training a Strategic Partner 1) The vice-president responsible for the training function should be actively involved in formulating corporate strategy. if possible. Since training (assuming that its objectives are strategically necessary) is an essential part of every job. Exhibit 5 : Aligning Training strategy with Corporate Strategy 3) 4) 5) 1) The Chief executive officer (CEO) and senior associates should include a training plan as a critical component of the corporate strategic plan. aim to involve all employees in all stages of training. Employers should think of their organisations as. On the other hand. and (3) program cost and skill objectives are met. in a sense. it should ensure that the employee becomes fully acquainted. as well as with the rapid obsolescence of occupations. and (2) strategic programs designed to keep up with . Effective partnership comes out of professional competence and credibility. Where employees are presented by unions. They should. management should count as a cost any additional expense incurred to cover the trainee’s work while training is in progress. with the new position. The most controversial-and potentially the largest-factor in measuring the cost of a program is whether the trainee’s time spent in training should be considered a cost. budgeted to) the managers whose employees are to be trained. Unions 4 3 2) 3) 4) . and supervisor. from needs analysis through evaluation. Such acquaintance maximizes the trainee’s ability to learn and to apply the new skills. The effectiveness of a program should be measured by how fully and how durably the trainees have mastered the subject matter. we recommend that it not be considered an added cost. as early as possible. and (3) help the trainees progress along the career paths jointly set by them and their managers.

train-the-trainer programs. with focus of competency building amongst various organisational units. the more critical role has to be played by the internal people in the organisations”. a jointly administered training program and fund Training. Partnering by different key persons in the organisation is important for the success of training. business schools. and developed models accordingly concentrated efforts on the need to produce practical instruments for translating an organisation’s strategic policy into human resource terms. consultants and Government. action will be required from trainers.and/or to help other employees learn . academics. academics. BUSINESS SCHOOLS AND CONSULTANTS l recognised that the place of training in most organisations does not correspond to best practice. Exhibit 6 : Ways of Enhancing the Training Function The role of the training function would be enhanced if TRAINERS l developed their own clear model of the role in their own organisation and communicated it accordingly participated in appropriate networks to keep abreast of the debate on the changing nature of the function l ACADEMICS.Human Resource Development should press for and accept such joint programs. continuous learning centres. 5) To institutionalize continuous learning throughout the organisation. While external agencies like management institutions. Encouragement should take such forms as: l A clear declaration that continuous learning and helping other employees to learn are integral parts of every job and every employee’s responsibility. requires collaboration amongst several players in the organisation. l l l l As Sloman (1996) says “If training in the organisation is to become more effective. for example pay raises. consultants and the government are important for making training effective. Favorable structures and mechanisms. the employer should encourage employees to make special efforts to learn . l GOVERNMENT l l recognised the limitations of public statements on the importance of training introduced fiscal measures designed to ensure that employers invest at least a specified amount in the training of their workforce. recognition by peers Where a union is present. semiautonomous work teams Appropriate rewards. . Exhibit 6 summarises the various roles of external agencies as suggested by Sloman (1996). learning by objectives. for example. but they should be careful to take on responsibility no faster than they acquire the skills and experience to discharge it. eligibility for promotion.skills valuable to the employer. 4 4 In Exhibits 7 and 8 are reproduced several recommendations from Rosow and Zager (1988) for aligning training with technology strategy and with financial strategy respectively.

including need. the user should seek the assistance of an organisation whose expertise encompasses both training and most or all of the technologies involved. job design. Training needs and costs should be included as an explicit part of the investment in new technology. to strengthen work-force receptivity to the continuous change and continuous learning that competition demands.specifically whether the functional elements are shaped and combined in the manner best suited to the organisation’s needs. and maintaining a system. and too costly. objectives. Manufacturer and user should pay early attention to how the new technology will affect organisation.Exhibit 7 : Aligning Training with Technology Strategy 1) The manufacturer of new technology should. instructional design. Employers should give as broad a guarantee of employment security as they can manage. The manufacturer should adopt a formal business plan that establishes the function of user training as a critical element of long-term business survival and growth. This will enable the user’s employees to solve problems on equipment of all kinds. (2) it gives the manufacturer a competitive edge in acquiring marketable innovations and adaptations developed by the user. 3) 4) 5) 6) 7) 8) 2) 3) 4) 4 5 . work rules. Senior management should evaluate cost-effectiveness in terms of agreed-upon objectives . (3) it helps the manufacturer develop improvements in current technology and designs for newer technology. too late. troubleshooting. communications. Such a relationship is advantageous to the manufacturer because (1) it binds the user to the manufacturer in goodwill. Exhibit 8 : Aligning Training with Financial Strategy 1) Senior management should require training proposals to include clear-cut information related to cost-effectiveness. Training 2. Since formal training is an indispensable part of implementing new technology. design. but also the scientific and technological principles on which it is based. and delivery. When an integrated system is assembled from components supplied by multiple vendors. in its own self-interest. At the least. use of in-house versus outside talent. The key elements include project management. manufacturer and user should jointly develop a training strategy that will ensure profitable operation by the user. Comparative cost data should be required whenever possible. course development. which acts as a drag on sales. and delivery systems. Costs should be related to subject matter and performanceinvolvement goals. Employers should give serious consideration to the continuous learning/ employment security connection as a strategy for the long-term survival and growth of the enterprise. Ad hoc or ex post facto decisions are often too little. take responsibility for ensuring that the user becomes capable of operating the new technology profitably. Hopes of accomplishing training cheaply and by improvisation are doomed to failure. decision-making patterns. The manufacturer should act either directly or through a third party for whose performance it accepts responsibility. These issues require advance planning and may determine the success of the organisation. and (4) it minimizes the possibility of user disappointment. Manufacturer and user should jointly secure that the user’s employees learn not only the technical aspects of operating. they should guarantee that no program for introducing new technology into the workplace will cause employees to lose employment or income. content. and learning systems.

resources. and (4) ensure that employees are ready to enter the new jobs when needed. (2) identify current employees who can be advantageously retrained for the emerging jobs. or a class. suppliers. or a team at work or play. It is a basic shift. What Chris Argyris calls ‘double-loop learning’ sets the stage for the rest: not only is 4 6 . employers should assign responsibilities and establish routines to (1) anticipate the obsolescence of current jobs and the emergence of new jobs. and the costs of dismissal or retirement and the hiring of new people may be higher. newly and reluctantly recognised as the now normal state of the environment and fed by instantaneous global information and tremors of all kinds. different even from the recent past when its people expected and then also buckled down to making a learning effort from time-to-time and here and there in the organisation.Human Resource Development 5) Employers should evaluate the costs of retraining career employees as compared with the visible and hidden costs of separation and replacement with the new. trained outsiders. and each step after. Exhibits and extracts from major works may serve best for an overview and also for connecting readers with the works themselves for fuller exposition of views of special interest to them. dates only from the 1970s. than appears on the surface.11 TOWARDS LEARNING ORGANISATION Organisation-wide learning. To promote employment security. and can be achieved by collaborative effort. Each calls for reconceiving the change effort and so also the training for it. Often the costs of retraining (combined with the advantage of stability of the work force) may be lower. from spasmodic organisation-wide learning to a continuously learning organisation is essential. Exhibit 9 contrasts organisational learning with a continuously learning organisation on the six dimensions highlighted in organisational studies since the 1970s. does not follow at all smoothly. It orients and prepares the organisation differently. The organisation-wide learning view is already a long way from viewing training as something for individuals. and that learning had to be continuous only from the 1980s. The next step again then broadens the perspective beyond the organisation to include people outside. and not just as clients. or more or less distant regulators or other officials as before and one-by-one. Employers should anticipate unavoidable displacements or forced dismissals as far ahead as possible and use the lead time to develop market-oriented re-training and outplacement programs. (3) provide employees with early opportunities to volunteer for education and training. and integration of a different order. Turbulence. causes the shift to a continuously learning organisation. Continuous learning that also embraces the environment—the organization-in-its-environment— has been the top agenda since the 1990s. 6) 7) 13. The very next step makes occasional into permanent effort. which is key to high productivity. So the shift is not just for more economy of effort and smoothing out interruptions of normal living and working. Urgent as it is. and reorganisation. widespread and as a clear concept. to a different disposition for the organisation as a whole. understanding this move. Economic supports should be built into the programs to reinforce employment security. it should be involved in these activities insofar as they apply to employees in the bargaining unit. but as essential partners and together. Where there is a union. The next step however. and even when lately that exigency occurred ever more frequently. and this can usually not be done with merely stretching what is already there but often calls for programming.

even if it be organisation-wide. the organisational framework remains unchanged. Basic to this shift is what Harold Bridger. the organisation uses the learning for changing its framework as well. 13. structure. training is the act of increasing the knowledge and skill of an employee for doing a particular job. deserves rethinking and replanning. and whatever else is necessary to support that change and to promote further changes. it expects and is continuously prepared for using innovative inputs for improving performance directly and also improving itself. Training. for use next time and also to guide adjusting the framework so it can support further learning. Nowadays training has almost become a strategic function of an organisation. but the organisation too takes note and modifies its policies. 1991) Training Training needs to be re-oriented so that it become a strategic function. Evaluation of training is as important as execution of training and the concept of retraining is based on this. learning only registers when it shows in improved performance. 4 7 .12 SUMMARY To sum up.something learned that improves task performance (single-loop learning). Indeed. How training needs are identified in an organisation? Describe the methods of on-the-job training. The key difference lies in the scope of that performance: in single-loop learning. therefore. ways of operating.13 1) 2) 3) 4) SELF ASSESSMENT QUESTIONS Define training and discuss its importance. Exhibit 9 : Organisation-wide Learning and Learning Organisations OrganisationWide learning 1) 2) 3) 4) 5) 6) Single-loop learning Incremental Lower-level Adaptive Tactical Occasional The Learning Organisation Double-loop learning Transformational Higher-level Generative Strategic Continuous (Argyris. 1977) (Argyris and Schon. There are various methods of training as discussed in this unit. 1985) (Senge. in double-loop learning. a founder member of the Tavistock Institute in London. 1978) (Fiol and Lyles. Explain the concept of organisational learning with examples. 13. Depending upon the training need analysis. but is able to help the organization become a learning organization. and contributes notonly to the development of individuals and teams. a particular method of training is chosen for the employee(s). 1990) (Dodgson. calls the ‘double-task’: learning for improved performance plus learning how the improvement is effected. Training is required in every organisation so as to cope the employees with the emerging trends. In both cases. when that becomes its culture.

Development and Evaluation. Goldstein. V. M. Dasgupta. Training for Organisational Transformation. Every Trainer’s Handbook. New Delhi. (1996). Agochiya. London. 4. (2002). Lynton and Pareek. Hamblin. San Francisco. Vol.Human Resource Development 13. Jossey Bass.14 FURTHER READINGS Ralf P. J. Sage Publications. A.M. (1978). A Handook of Training Strategy. 4 8 . (1974). Wordsworth. Training: The Competitive Edge. A. Sloman. “Evaluation of Training”. Jaico. New Delhi. V.C. and Ford.K. (1974). I. and Zager. Rosow. Vikalpa.L. R. McGraw Hill. 3. Pareek. Vishal Publishing House. J. Sage Publications. (1988). Business and Management in India. (2000). Evaluation and Control of Training. Bombay. No. Training in Organisations: Needs Assessment. Delhi. (2002). D.

being different from the employee’s own desire to learn something else. it is necessary to understand the conditions associated with development.2 14.7 14. This may be because of the difference between the observer’s interest in the employee’s development in one direction. you should be able to: l l l l Mentoring and Performance Coaching define coaching and mentoring. Quite often. No individual wants to stagnate. because of their expectations and their limited perspectives. describe the processes of coaching and mentoring.1 CONDITIONS FOR EMPLOYEE DEVELOPMENT For helping an employee to grow and develop in any Organisation. It is useful to know in which areas the employee is interested in developing.6 14. Through such an understanding and mutual discussion. While in the developed 4 9 . it may be possible to create interest in individuals for new areas of development that are congruent with organisational goals and plans.8 14.9 Conditions for Employee Development The Objectives of Performance Coaching Conditions for Effective Coaching The Process of Coaching Phases of Performance Coaching Making Coaching Effective The Process of Mentoring Summary Self Assessment Questions 14. The first condition for Human Resources Development is to ensure the interest of the individual in developing himself. Such perceptions only show bias.5 14. 2) The individual should know the areas of his potential development Although the recent researches in behaviour suggest that individuals can learn any skills. 1) The individual should be interested in developing himself Development cannot take place if the person himself is not interested in it. brand people as stagnating. higher level officers in the organisations write off some of their employees as not growing or not willing to grow. Only others. The following are some such conditions. there is also ample evidence to show that some individuals can grow faster on some dimensions that on others. and highlight the process of implementing them in organizations. These are called aptitudes.3 14.1 14. Structure 14. list the goals of performance coaching and mentoring.UNIT 14 MENTORING AND PERFORMANCE COACHING Objectives After going through this unit.10 Further Readings 14.4 14.

In organisations where fresh graduates are exposed to a variety of jobs through job rotation procedures. In organisations which do not have such a job rotation policy at the early stages of employee’s career. the individual should be in a position to make a clear choice about his career. Opportunities for the development of individual employees within and outside the organisation should be created. that he is good at certain things and he is not as good at certain other things.Human Resource Development countries there are enough opportunities for an individual to know about his potential through psychological tests. 5 0 . the young men get opportunities to test themselves and their aptitudes in relation to various functions. In such a case. Sometimes the individual may have the strengths required for a particular career.. which according to him is rewarding only in a limited way. Such an investment would depend upon how much he is prepared to act. A person’s insight into his strengths and weaknesses may depend on his introspective capability and the opportunities he gets to test himself. Development can take place only through concentrated efforts to acquire knowledge and the ability to experiment with that knowledge. it is unrealistic to expect it to support the career goal of each individual employee.. Through a good career planning and training system. the organisation also has an obligation to create conditions for such a discovery. strengths. A person should have either a reference group or a few selected helpers in the environment for periodical reviews. the chances of round pegs being put in square holes increase. Some careers may be more paying than others. High-activity level and risk-taking orientation ‘accelerate learning. weaknesses. 7) He should take outside help to periodically review his progress Persons cannot develop in isolation. etc. school coaching services. etc. 3) The individual should make a clear choice about the direction in which he would like to grow and develop Besides discovering his aptitude. 4) He should be able to identify opportunities for development within and outside the organisation Identification of potential. may have a demoralising effect on the employees if no system exists for developing or overcoming them. The organisation should also help in setting such career goals realistically. quite often too late. While every individual should attempt to discover his own potential. However. Most of the development at higher levels is facilitated through human interaction. the organisation should attempt to help him to develop himself. A combination of his strengths may indicate that he is good at a number of things. An individual himself may discover. it should help the individual to understand the limitations and work out alternative strategies. The reference group or selected helpers act as mirrors so that the individual can continuously look at himself in the direction in which he is growing. He might discover that he has more than one strength. he should be able to take the risk and create opportunities for himself to develop strengths required for new careers. 5) He should identify mechanisms of using these opportunities and get the support he needs from his superiors and the organisation While the organisation should plan for the growth of the employees according to their career plan. 6) He should make efforts to develop Mere interest in development does not serve any purpose if the individual is not prepared to invest himself and his energies in his development. we do not have such services easily available in India. family guidance services.

Performance review can be done at several stages. 6) 7) 8) 9) 10) Helping them to review in a non-threatening way their progress in achieving various objectives. Helping them to develop various action plans for further improvement. and (3) identification and development of his potential for higher level responsibilities. Mentoring and Performance Coaching 14. concerns and problems. Others can help him as quite often he may not be aware of his own strengths.2 THE OBJECTIVES OF PERFORMANCE COACHING Coaching aims at developing employees in an organization. set himself realistic career goals. It serves three main purposes: (1) general improvement of the person. Providing them empathic atmosphere for sharing and discussing tensions. the former should get interested in identifying opportunities. 1) 2) 3) 4) 5) Helping them to realise their potential as managers. Helping them to understand themselves – their strengths and weaknesses Providing them opportunity to acquire more insight into their behaviour and analyse the dynamics of such behaviour. a) Individual-level Review The purpose of performance review is to help the employee grow and develop. by the following. Encouraging them to generate alternatives for dealing with various problems. Helping them to have a better understanding of the environment. 5 1 . The identification of potential and development of the employee is a joint responsibility of the employee himself and the organisation. strengths and weaknesses. present and future. just as he may be blind to his weaknesses. While the latter should provide opportunities for the individual to grow. 11) Strengthening the dyadic relationship between the employee and his boss. opinions and. a formal system of performance review can be employed by organisations. free exchange of views. One of the most effective instruments in the hands of an employee for development is performance review (feedback and coaching).8) A positive emotional and professional climate should be created in the work place for the employee to progress and review himself The responsibility for creating such a climate lies at every level with higher level officers and the top management of the organisation. such a feedback should be specific and purposeful. Increasing their personal and interpersonal effectiveness by giving them feedback about their behaviour and assisting them in analysing their inter-personal competence. Performance review can be done both for the individual and the group. While it is the responsibility of the supervisors to guide and counsel their employees in relation to their past. The individual has the responsibility to make use of such opportunities and act with drive and determination. conflicts. Encouraging them to set goals for further improvement. at the same time fostering of mutual trust. However. emotions. Such a climate facilitates free expression of feelings. (2) improvement of his performance in specific tasks. Those who continuously interact with the person can act as mirrors. and continuously review his growth.

Usually. either formally or informally. etc. In such a formal system. He might add a number of other factors which have helped him to achieve whatever he has achieved. after a system of potential appraisal has been introduced in the organisation. The qualities on which the individual is going to be rated are also identified in advance. Some organisations use mechanisms to appraise the potential of an employee. However. his senior officer tries to help him analyse his own performance in greater depth. whenever a subordinate faces a problem. Improved Performance: While the senior officer help their subordinates to perform gains. The following points may be kept in mind in the potential appraisal review of the employees. Feedback on potential assessment would help the employee to understand his strengths and weaknesses. both the individual and his senior officer sit together for performance review. General Improvement : Feedback for the general improvement of an employee is a continuous process. The formal appraisal system is another mechanism of giving feedback discussion. After he presents his own assessment. It may be useful to give feedback to the employee on such data. In the performance review. The employee should be helped to view alternative career opportunities.Human Resource Development 1. At the end of a specified period of time. and a number of other factors that prevented him from doing better. it should be handled delicately. and help him to modify his career plans accordingly. Usually. The individual may also highlight the qualities he has shown in that particular period. friends. the tasks are set much in advance. immediate task-related problems rather than on other aspects of behaviour. his officer may give a solution for that particular problem. Such review should better be done either by one whom the employee trusts. family members. subordinates. Merely providing the solution to a problem does not amount to giving feedback. and the factors that prevented him from doing better. Since emotions are involved here. a climate of psychological security. managers guide their subordinates more in relation to specific. The senior officer may also focus on the strengths and weaknesses of the appraises. they would have with them the employee’s ratings and other data on his potential. No formal system can help in such a continuous interpersonal feedback. The officers one or two levels above the employee can give such feedback. 5 2 . the individual points out his own accomplishments in relation to the objectives decided upon. It occurs either inside or outside the organisation through colleagues. Both the manager and his employee jointly identify the developmental needs and ways of meeting the needs. it is likely to demoralise him. He may also identify the factors that have helped him in achieving whatever he could achieve. In such a review with the employee. a) b) c) The employee should be given the source of feedback. Within the organisation. or by a group of people from the top management who have a broader perspective and who can coach the employee. people who work closely can be instrumental in helping the employee continuously assess the impact he is making on people and the environment. For example. it can be facilitated through an open climate. data are collected about all the employees whose potential is being assessed. Feedback is a critical factor in such a review. The employee should be told the limits of the feedback. Potential Development of the Employee: Employees develop their potential if they are aware of the opportunities in the organisation and also of the mechanisms for developing this potential. This will not necessarily help the employee to develop the ability to solve future problems by himself This ability to solve problems by himself can be developed through continuous education. If the employee has no opportunity to explore the feedback further. or by an outside expert who has used objective measures of assessing the potential. 3. He might also point out the consistencies or inconsistencies of behaviour he observed in the employee. 2. Such an assessment would help him to understand his own characteristics and develop as a mature person. and positive attitudes towards one another in the organisation.

d) Before giving such feedback. While doing so. It is a process of developing a dialogue which eventually contributes to a better understanding on the part of the counsellee. but these are used to refocus on improvement on organisation roles rather than on personal or general personality problems. 5) Focus on Work-oriented Behaviour The main purpose of performance coaching is to help the employee to improve his performance.3 CONDITIONS FOR EFFECTIVE COACHING Coaching is a means and not an end in itself. and While giving the feedback. coaching cannot be effective. The following conditions are necessary for coaching to be effective: 1) General Climate of Openness and Mutuality If the organisation or department in which the employee is working is full of tension. which is not possible unless the coach has a general helping attitude and has empathy for the counselled. Coaching is not a one-way process of communicating to the employee what he should or should not do. Mentoring and Performance Coaching e) b) Feedback to Groups or Teams Feedback needs to be given to a group of people who constitute a small unit or a department within a large organisation. Feedback to groups is generally useful in terms of the process mechanisms operating in the group. 5 3 . and people do not trust each other. the relationship of the employee with others who work with him should also be kept in mind. Development does not occur just because there is coaching. 2) General Helpful and Empathic Attitude of Management Coaching involves effective helping. 3) Uninhibited Participation by the Subordinates in the Review Process Unless the subordinates in a department or organisation feel free enough to participate without inhibition in the process of review and feedback. Without such collaborative effort. discussion may involve other related and personal issues. supervisory styles. collaborative orientation of the group with other groups. Joint participation by the employee and his reporting officer is necessary both in goal-setting and performance review. Coaching could be an effective instrument in helping people integrate with their organisations and have a sense of involvement and satisfaction. Coaching can be effective if the focus is kept on the work-related goals rather than on diffusing attention into various other areas. delegation. coaching cannot achieve its purpose. it should be ensured that the employee believes that there are opportunities to develop his potential and that human behaviour is dynamic and changeable. A climate of minimum trust and openness is essential for effective coaching. 4) Dialogic Relationship in Goal Setting and Performance Review Performance coaching focuses on the counsellee’s achievement of the performance goals set in consultation with his manager. Mechanisms of giving group feedback using survey research are described in the section on research and organisation development. coaching cannot be effective. morale. like decision-making styles. 14. etc Feedbacks can be given either by the organisational leader or through an external agent using the research and surveys. It may help the group to grow and develop as such.

.Human Resource Development 6) Focus on Work-related Problems and Difficulties Performance coaching is not only related to the achievement of goals.4 THE PROCESS OF COACHING Coaching is given by one who is senior to the person. The manager cannot deny the fact that he is influencing his employee in such a way that the latter is able to move in some direction. Finally. giving messages (responding). etc. The coach essentially communicates with the employee. psychological expertise. However. enabling the other person to exercise more autonomy. or in the hierarchical position in an organisation. this influence is of a special that is. helping. etc. also functions in a similar way. helping behaviour is based on the concern and empathy the coach has for his counselee. This dynamic process of coaching is shown in Figure 1. Bringing such discussion in the performance coaching may vitiate the main purpose of coaching. Communication involves receiving messages (listening). Figure 1 : The Process of Coaching Responding Initiating Listening Communications Counselling Feedback Influencing Identification Autonomy Empathy Development Helping Mutuality Positive reinforcement 5 4 . The person who provides coaching does all the three things. i. rewards. There are three main processes involved in coaching—communication. the counselee responds as much to the coach’s needs as the latter does to the former’s. Secondly. 14. receiving the help—in competence. rather than in understanding the relationship between performance and rewards like salary. and creating conditions in which the person is able to learn from the behaviour of the coach through the process of identification. knowledge. and giving feedback. providing positive reinforcement so that desirable behaviour is further strengthened. 7) Avoidance of Discussion of Salary and other Rewards Performance coaching may not serve its purpose if it includes discussion about salary raise. Coaching also involves influencing the counsellee in several ways. Firstly. it is also based on the mutuality of relationship. Analysis of performance therefore becomes the basis of coaching. The main purpose of performance coaching is to use performance appraisal in planning and improvement of the employee. but also to the contextual problems in achieving or not achieving the goals. The third element in the process. helping primarily involves identification of developmental needs of the counselee so that he may be able to develop and increase his effectiveness.e. influencing and helping. It involves three different elements.

the latter will be helpful.The various elements of the process is explained in more detail below. Again. When an employee in a coaching situation asks: “How should I attain a higher target?”. Listening involves paying attention to the various messages being sent by the other person. clarifying matters. Questions that do not Help: The following types of questions are not only unhelpful. reprimand or doubt the counsellee. establishing mutuality. whereas “Why could you not attain your targets?” would normally communicate an invitation to examine hindering factors. which may help the employee to be in a receptive mood. All such critical questions either shut off the counsellee or make him diffident. “How can you achieve this target since you failed last time?” indicates doubt in the ability of the employee. They can serve several purposes: they can help in getting more information. Some questions can shut off the employee. In a testing question. Listening to feelings and concerns is very important for effective coaching. It may get distorted if people are not empathic to each other and do not try to understand each others’ point of view. while the other person is put in a kind of witness box. It is important to keep in mind that communication is greatly influenced by how problems and issues are perceived by the two persons involved in the conversation. or make him dependent on the coach. Obviously. The tone and manner of speaking is also important. Such a conversation in performance review should be congenial. Some exercises can be used to improve listening of such hidden messages (Rao and Pareek. “How did you again fall short of your target?” is a reprimanding question. are evaluating or testing questions. Listening: Listening is the first effective step in communication. while some others can build the autonomy of the employee. Questions play a very important role in coaching. but they also hinder the process of effective coaching: a) Critical questions: Questions which are used to criticise. This involves skills which can be practised. A reporting officer who proposes to find out why his employee was not able to meet his target can easily slip into a cross-examination. Such questions may also take the form of a crossexamination. But there may be hidden feelings and concerns which the other person may not be able to put clearly in words. 1) Communication Interpersonal communication is the basis of performance review in which both the employee and his reporting officer are involved. Asking Questions and Responding: Questions can facilitate or hinder the process of communication. testing or evaluating posture. or how much he knows. 1978). People speak much more through their gestures and postures than through words. There are three main elements in communication. “Why did you fail to achieve your targets?” communicates criticism. Testing questions: Questions that are asked to find out whether a person is right or wrong. the person asking the question takes a superior attitude. The obvious message is the ideas being communicated (cognitive message). create a gap between him and the counsellor. the tone of the interviewer may determine whether the question is a testing question. Such questions may tend to put the other person on the defensive. Non-verbal communication is as important as verbal communication. stimulating thinking. The way the question is asked (skeptical or sarcastic tone) may indicate that the question is a critical one. and not the former. it may indicate his resentment depending on the tone in which such a question is asked. The choice of words may also indicate the critical nature of the question. Such questions are sometimes similar to critical questions. Resenting questions: A person may ask questions to indicate his resentment of the behaviour of the other person. Mentoring and Performance Coaching b) c) 5 5 .

The question “How do you think I can deal with the problem I am facing?” is seeking help from the other person. the questions asked indicate what kind of answers are wanted and such answers are actually received. A leading question almost seduces the other person to go along the line of thinking of the one who asks the question. some of which are useful and some dysfunctional. Such questions are very useful. Responding to questions: Coaches sometimes use certain responses. or it may be put in the question form: “Were you not able to attain the target because the maintenance department did not cooperate?” Both are leading questions. Empathic. Such questions help to generate more trust. Such questions may be asked both by the employee and the supervisor. in turn. more facts and figures. a) Trusting questions: Questions which are asked to that the questioner is seeking help or suggestions may indicate the trust he has in the other person. his concern. supportive. Open questions encourage creativity. Open questions: The most useful questions are those which stimulate reflection and thinking in the employee. “Why do you think we have not achieved the targets this year while the other company has?” is an open question inviting the other person to explore the various possible dimensions. It is necessary to be aware of this. This tends to stop further exploration and is not helpful. and a tendency to explore several directions which might have been neglected so far. and then he may ask a question to confirm whether his understanding is correct. the question. Such questions are very helpful. “Are you worried about your lack of knowledge of the new system?” is a clarifying question. For example. a reporting officer may say to his employee: “You could not attain the target because maintenance department did not cooperate. Questions that are Helpful: The following types of questions may be of help in developing a more healthy relationship and in increasing the effectiveness of the other person. Responses that alienate the employee. he is not merely seeking information. Various verbal behaviours in a coaching situation that characterise these responses are shown in Exhibit 1. may be classified as empathic questions. For example. Clarifying questions: Questions may be asked to collect information. his problem. are more likely to be dysfunctional. and exploring responses are more functional. A clarifying question helps the manager and the employee to remain at the same level throughout the conversation. Empathic questions: Questions about the feelings of a person. Some coaches may be using certain types of responses more often than others. not so much for finding solutions as to indicate and express concern. Is that true?”.Human Resource Development d) Leading questions: Quite often unknowingly. and the necessary rapport with the employee. but in fact indicating his personal concern about the health of the employee’s son and thereby expressing empathy with the employee. b) c) d) e) 5 6 . If a coach asks his employee several questions to help him to get more information about various aspects. the employee. Such a question may be asked after making a statement. the coach may paraphrase the counsellee’s statement (also called mirroring). would provide him with relevant information to understand his problems. When a manager asks an employee: “How is your son feeling now?”. After listening to a person for some time. criticise him or order him. and to share them with the person who is asking such a question. Empathic questions create a climate of mutual trust and human understanding.

and 14. 6. checked and verified. 5. 13. 4. The process of interpersonal feedback. data-based and specific and not impressionistic. 9. 8. it results in a higher mutuality between two persons. 1976).Exhibit 1 : Coach Responses Unhelpful Alienating Continuous stress on conformity Not encouraging creative acts Passive listening Lack of verbal response Critical Criticising Pointing inconsistencies Repeated mention of weaknesses Belittling Reprimanding Directive Prescribing Ordering Threatening Giving no options Pointing out only one aceptable way Quoting rules and regulations Effective and helpful Empathic Leveling Rapport building Identifying feelings Supportive Recognising Communicating availability Committing support Trusting Exploring Questions Questions Reflecting Sharing Probing Closing Summarising Concluding Contracting for follow up and help Mentoring and Performance Coaching Feedback Interpersonal feedback is an important input for increasing self awareness. 11. 2. 10. The following hints are reproduced from that source: Feedback will be effective if the person giving feedback (coach) makes sure that it is: 1. reinforces positive new behaviour. it is necessary that the reaction to feedback is more in terms of exploring ways of improving behaviour rather 5 7 . suggestive and not prescriptive. focused on the behaviour of the person and not on the person himself. descriptive and not evaluative. helping him to become more aware about his strengths and weaknesses. giving data from one’s own experience. mostly personal. focused on modifiable behaviour. continuous. If properly used. 3. well timed. contributes to mutuality and building up of relationship. satisfying the needs of both (giver and receiver of feedback) 12. 7. It helps in reducing the blind area of a person. need-based and solicited. From the point of view of the one who receives the feedback. have been discussed in detail (Pareek. intended to help. and conditions which make it effective.

3) Projection (contributing negative feelings to the other persons) as opposed to empathy (trying to understand the point of view of the other persons). Flanders makes a distinction between the two modes of influence. And these are encouraged through positive reinforcement. In coaching. Even this is influencing. he feels encouraged to take more initiative in exploring new directions. On the other hand. 9) Cynicism (generally strong skepticism that things cannot improve) as opposed to a positive. viz. 6) Aggression towards the person giving feedback as opposed to seeking his help in understanding the feedback. He classifies criticism and punishment in the first category. This restricts his freedom. Influencing in coaching would involve the following three aspects: a) Increasing Autonomy of the Person Usually. 7) Humour and wit as opposed to concern for improvement. influencing is understood only in the sense of restricting the autonomy of the person and directing him into channels which are predetermined by the person exerting influence. but of a different kind. and encouraging a person in the second category of influence. When a person is criticised or punished. Influencing would involve providing encouragement and reinforcing success so that the person takes more initiative and is able to experiment with new ideas. 10) Generalisation (explaining things in a general way) as opposed to experimenting. Rationalisation (explaining away feedback by giving reasons) as opposed to self-analysis to find why such behaviour was shown. much more use is made of the indirect mode of influence. 4) Displacement (expressing negative feelings to one who may not fight back) as opposed to exploration (taking help of the other person in knowing more about the feedback given). Change cannot take place without experiment and risk taking.. if a person is praised or recognised. Flanders has developed some categories to indicate the two modes. by recognising and expressing feelings.Human Resource Development than of defensive behaviour. and raising questions which promote thinking and exploration. and the indirect mode of influence (which increases the freedom of the other person). The following defensive behaviour might not help in using feedback properly. Positive influencing is the opposite of this. 5) Quick acceptance without exploration as opposed to collecting more information and data to understand the behaviour. 2) Influencing Influencing would mean making an impact on the person in relationship. acknowledging and praising good ideas given by the counsellee. the autonomy of the other person is increased. 1) 2) Denying feedback as opposed to owning up responsibility for behaviour. the direct mode of influence (which restricts the freedom of the other person). the behaviour which are opposite of these may be helpful. Such impact need not necessarily be of a restrictive type. The reason is obvious. This results in an increase in the field of his autonomy. and he has larger scope of making his own choice. 8) Counterdependence (rejecting the authority) as opposed to listening carefully to the person giving feedback. but only through positive reinforcement. some actions for which he is criticised or punished are inhibited and the person avoids doing those in future. 5 8 . critical attitude to accept some feedback and to question some other. b) Positive Reinforcement: It has been established by Skinner that change in behaviour cannot be brought about in human beings through punishment or negative reinforcement.

Managers may constantly ask themselves how much concern and genuine empathy they have for the employees they are coaching. to help the development of the process of identification it is necessary that the manager also examines his own process. c) Identifying Developmental Needs: The main purpose of performance coaching is to identify the development needs of the employee which can be met through various ways. This would be reflected in the kinds of questions asked and the tone in which the conversation takes place.. both persons involved in the relationship feeling free to ask for and provide help to each other—coaching cannot be effective. Helping involves several processes but the following three are mainly important. such as a you-we technique. complete rejection of dependency needs. This legitimate need should be fulfilled. on subtracts from. Guiding is the techniques the supervisor uses to motivate or help the employee to change his behaviour. the interchanges with the meaning the employee communicates. What is learnt from keying is replayed in a manner which adds to. skill and influence. coaching may only degenerate into a ritual and cannot achieve its goals. intolerance for mistakes. Mentoring and Performance Coaching 5 9 . responding and guiding. effective helping cannot be provided in a coaching session. Without such genuine concern. b) Mutuality of Relationship: Coaching should not be regarded as merely giving help. Responding concerns what the supervisor communicates back to the employee. Morrisey (1972) has suggested a few other techniques. and needs of interacting with the subordinates. or power motivation. one uses you to compliment and we to criticise (“you are doing a great job. which they defined as “ the process by which the manager aids the employee in effective problemsolving. Keying refers to reading people. he continues to learn and to receive help from the counsellee. It is also receiving help on various aspects. Levinson states several barriers which may come in the way of such a legitimate process of identification: lack of time. The advice-request is asking the employee for suggestions and advice. Raman says that you have done an excellent job for him). and develop using the techniques or keying. Although the coach is in a superior position. Summarising at the end helps in clarifying the decisions taken and fixing the responsibilities and integrating the whole discussions. The supervisor as motivator can increase the employee’s drive and direct it so that he accomplishes his objectives better.c) Identification: One major influence which helps an employee to develop is the opportunity for him to identify himself with individuals having more experience.e. repression of rivalry. The second-hand compliment is communicating to the subordinate a compliment for him received from a third party (Mr. Sperry and Hess (1974) have advocated the use of contact coaching. a) Concern and Empathy: Without the manager’s concern for his employee.” Contact coaching is based on a transactional analysis approach and makes use of several skills already discussed. Levinson suggests that. second-hand compliment. 3) Helping Coaching is essentially helping. Such concern is shown when the coach is able to feel for his subordinate and is able to empathise with him. Unless such a relationship is established— i. In the you-we technique. advice-request and summary. The supervisor uses an appropriate frame of reference to perceive what the employee means by his verbal and non-verbal responses. It is necessary that coaching results in clear and systematic identification of such needs and in subsequent plans as to how these needs will be fulfilled. we have a problem”). This is the first stage in the development of psycho-social maturity. Mutuality is based on trust and the genuine perception that each person has enough to contribute. and unexamined relationship.

particularly at the time of performance review. by providing the proper emotional climate. to reduce dissonance between internal and external realities. Figure 2 gives in summary the dynamics of the helping process in value terms. Support involves acceptance of the employee as a total person. By the process of mutuality and support. serve as reinforcements. ranging from basic physiological needs to abstract self-actualisation ones (fulfilling physiological.5 PHASES OF PERFORMANCE COACHING Coaching is helping the employee to grow and develop in the organisation. People are controlled to a certain extent by their environment. although some exploration of causation may be beneficial in some cases. knowingly or unknowingly. even if they have restricted options due to environmental variables or inherent biological or personality predispositions.Human Resource Development Values in the Helping Process: The central issue in a helping process relates to the values of the helper. An effective manager coach is one who helps his employees to become more aware of their strengths and weaknesses and helps them to improve further on the strong points and overcome weaknesses. he helps the employee to develop. People are capable of learning new behaviours and unlearning existing ones and they are subject to environmental and internal consequences of their behaviours. They always have choices and freedom. The helping behaviour and strategies flow out of the basic stand he takes in relation to the client. People are continuously striving towards meeting their own needs. Mutuality involves working together with the employee and developing future plans of action for the employee’s growth and contribution to the organisation. Behaviours are purposive and goal-directed. Coaching skills are important for a manager. and capable of making their own choices and decisions. They strive for reinforcements that are meaningful and congruent with their personal values and belief systems. and with what consequences. Every manager is coaching his employee. Okun (1976) has suggested that the following set of images of people is essential for an effective helping process: 1) 2) People are responsible. along with responsibility. They want to feel and behave congruently. People want to feel good about themselves and continuously need positive confirmation of their own self-worth from significant persons. in his day-to-day work-life. People’s personal problems may arise from unfinished business (unresolved conflicts) stemming from the past (concerning events and relationships) and. 6 0 . and encouraging him with warmth. with his strengths and weaknesses. Many problems experienced by people today are societal or systemic rather than personal or interpersonal. Coaching requires certain interpersonal skills which can be acquired easily if a manager is genuinely interested in developing his subordinates. People are capable of learning to effect choices and changes within the system as well as from without. on what choices the person has now. psychological and aesthetic needs). most problems can be worked through by focusing on the here and now. 3) 4) 5) 6) 7) 14. but they are able to direct their lives more than they realise. The helper should ask himself/herself what values he/ she holds. Problems are also caused by incongruence between internal (how you see things inside) and external (how you see things outside) perceptions in the present. which in turn.

reprimand s TYPE B Perception of client as Confirming l l Autonomy or Interdependece s Resulting in s l l l l Analyse (with client) the forces Encourage the client to analyse the dynamics Encourage the client to identify the blocks Encourage the client to develop referral systems s The hilping mode 6 1 . as caused by clients l l l l l Resulting in l Ignorance Lack of understancing Lack of capability Inability to act Inability to make make rational decisions Weaknesses l l l Ignorant Capable of rational decisions Responsible s Perception of problem as caused by l l l l Outside forces Complex factors Blocks preventing Client to perceive complexity Client’s unfamilianty with resources Good managers. not rationale Criticise. openness and mutuality. by listening to his problems and feelings. which are important for the managers to note. The coaching process has the following three phases: rapport building. s l l l l l l Tell what to do Explain Suggest simple solutions Advice Give solution. He does this by empathising with the employee and his orientations. coach their employees in their jobs. by communicating his understanding to the employee. and action planning. whenever the necessity arises. support. Annual performance reviews provide formal opportunities for formal coaching. and by expressing empathy with and genuineness of interest in him. In the rapport-building phase. Such a formal coaching process passes through certain stages. a good coach attempts to establish a climate of acceptance.Figure 2 : Circular Helping Process – Two Types TYPE A Perception of client as l l Mentoring and Performance Coaching l Ignorant Incapable of making rational choices Irresponsible s l l Dependence or Counterdependence s Perception of the problem. exploration. warmth.

The manager makes commitments to provide the specific support to employee for development. the coach attempts to help the employee to understand himself and his problem better. problems. etc. smile Conversation on personal matters Physical attention (posture) Eye contact Response (verbal and non-verbal) Keeping out telephones. 6 2 . priority pros and cons Discussion of one solution Discusssion of an action plan Contingency plan Identification of needed help Monitoring Contract on help Discussion from start Distraction (attending to other things. etc. The coach-manager should level himself with his employee and tune himself to his orientations. concerns. This phase involves generating confidence in the employee to open up and frankly share his perceptions. Against each sub-phase are mentioned types of coach behaviour which either help or hinder the coaching process. He may do this by raising questions to help the employee explore his problems and diagnose the problem properly. noise. This can be done by adopting the employee’s frame of reference. Exhibit 2 gives the three phases (and the sub-phases) of the coaching process.Human Resource Development In the exploration phase. Exhibit 2 : Sequential Process of Performance Coaching Phases Report Building Attending Listening (to) feelings concerns problems Acceptance (empathy) Exploration Exploring Helpful Behaviour Hindering Behaviour Rituals. talking to others etc. feelings. Lack of response Passive listening for a long period Criticising Avoiding or hedging Suggestion of a problem Problem Identification Diagnosis Action Planning Searching Decision making Suggesting the cause Advising Directing Making a fixed plan Supporting Promise of general help Rapport Building Rapport building is essential for any effective coaching outcome. the coach and the employee jointly work out or plan specific action steps for the development of the latter.) Signing letters. disturbance. during conversation Communication of feelings and concerns Paraphrasing feeling Sharing own experience Mirroring or paraphrasing Open questions Encouragement to explore Questions to explore possible problems Encouragement to generate information Identification of a probable problem Exploratory questions Generating several possible causes Questions on possible solutions Generating alternative solutions Questions on feasibility. In the action planning phase. telephones etc.

However. all such rituals should come out of the genuine concern for and full attention to the employee during the coaching session. Listening: It has already been discussed that listening is important for effective coaching.Attending: The opening phase of coaching is very important in rapport building. the coach may ask questions to narrow down the problem to the employee’s relationship with a few colleagues. asking the secretary not to disturb or not to connect telephonic calls during the conversation. Explorations should lead to the diagnosis. At the most. This builds a climate of acceptance and facilitates the process. both to generate information on some concerns and problems and to narrow down focus to identify a more probable problem. But I never get promotion. “What do you attribute it to?”. the coach may use open and exploring questions. the problem may turn out as to how the employee may deal with competitive relationship. The coach communicates this to the employee by listening to all the problems of the employee and communicating back to the employee that he is listening. For example. may indicate that the coach is attending to the employee. and establishing a climate of openness. “What personal limitations mainly bother you?” may help the employee more towards a better diagnosis. Nobody would like to be directly told his weaknesses. listening to him. or discover unidentified problems and bring to the surface unnoticed issues. when an employee says. It is necessary for the coach to use questions. Coaching skill lies in making the employee discover his own weaknesses. the coach should attempt to understand as well as help the employee understand his own situation. a variety of questions may be used. weaknesses. Identification of a problem is the necessary step in planning for improvement. strengths. As already discussed. leaning forward) and keeping eye contact with the employee are indicators of listening. “Can you recall occasions when you got full cooperation?”. General opening rituals may communicate messages of attending to the employee and give importance to the coaching transaction. For example. Inviting rituals like offering the chair. Problem Identification: After general exploring.. Physical posture (e. and then questions may be asked to help the employee see what he does that prevents possible cooperation. I have worked twice as hard as anyone else in the office. Without diagnosis there is little scope for solving any problem. Eventually.g. The coach can communicate back to the employee by paraphrasing or mirroring or reflecting what the employee says.” he is expressing his anger. closing the door to indicate privacy. The employee must feel that he is wanted and that his coach is interested in understanding him as a person rather than as a role or a position in an organisation. Open questions like “Why do you think people are put off when you talk with them?”. Exploring can be done by using questions and suggesting to the employee to talk more on a problem he mentions. Exploration: Besides accepting the employee. if an employee feels that his problem is that others do not cooperate with him. problems and needs. I have tried to do my best in the past year. Exploring helps an employee to search various dimensions of the problems. As already stated it is important to listen to what the employee says.” Such a reflection or mirroring would help the employee feel that he is being understood and that his coach is interested in him. Diagnosis: Diagnosis of the problem is the next step in exploration. and identify his problem. “I am really mad. questions may be asked to help the employee focus on the problem. Mentoring and Performance Coaching 6 3 . and yet collaborate. Acceptance: Establishing a climate of acceptance is a necessary part of establishing rapport. The main attempt should be to generate several alternative causes of a problem. “You feel that your superiors have not shown proper recognition for your hard work. as well as to his feelings and concerns. The coach may reflect back and say.

In such situations. If the employee has serious emotional block in dealing with his superior. however. the employee may be forced into a coaching situation.6 MAKING COACHING EFFECTIVE In performance coaching formally organised by the organisation. the coach may help the employee assess the advantages and disadvantages of each alternative. Acceptance is the best way of bringing about self-realisation in the person. This closes the coaching interaction. This may. The employee must understand the purpose of coaching. The employee should primarily take the responsibility of generating alternatives. The coach must allow the employee to make his own decisions and perhaps help him in making decisions. Psychological contract of providing help should emerge after considerable exploration and discussion. be done only after some time. Supporting The final and. he may not receive whatever is said to him in the proper perspective. be regarded as a contingency plan.. A system for monitoring and follow up of the action plan may be prepared. it must be ensured that the employee is willing to learn from this interview. It may prove frustrating both to the coach and to the employee. This should. Decision Making: After the alternatives have been generated. In addition to encouraging the employee in brain-storming such alternatives. the employee may not ask for coaching but his superior may organise coaching interviews as an organisational requirement. Searching: The main contribution of the coach to action planning is the help he provides to the employee in thinking of alternative ways of dealing with a problem. Arguments should be minimised. crucial stage of coaching is to communicate support and plan for such support in implementing the agreed action plan. increased responsibility. The employee is likely to open up if the coach establishes an open climate. 14. Three sub-phases can be identified in action planning. Coaching interviews should end with specific plans of action for the development of the employee. that there is a danger of employees becoming totally dependent on the coach. Hence. If coaching is given without having been sought. Some employees are so loyal and some superiors so protective. there is no use organising a coaching interview. 6 4 Good coaching sessions fail to produce effective results due to lack of follow up. They need a problem-solving session before that. but must not take decisions for him. raise questions on the feasibility of the various alternatives. if he is making the employee too dependent on him. Identifying a training need. role clarity. however. The coach should check from time to time through reflection.Human Resource Development Action Planning: Managers are expected to guide their employees and contribute to their development. before coaching. to be altered in the light of further experience. . job rotation. it is better to use the first session to clarify them and then schedule another session. sponsoring for further training. it is likely to be of limited value. etc. On such occasions. If he does not understand. One argument is sufficient to make both parties defensive. Support and help should facilitate in further increasing the autonomy of the employee. the coach at a later stage can also add to this list of alternatives for further exploration. are some of the likely outcomes in such action plans. and help finalise a plan to be implemented. the coach would do well by forgetting about performance coaching and talk to the employee about his lack of interest in growth. and not his dependence on the coach. or has wrong expectations. The coach should accept everything the employees says and try to build on it. If it is felt that he has some misunderstandings.

Some benefits of mentoring are that it enhances productivity and teamwork. counter-dependence may develop before inter-dependence. sponsor. he left his son Telemachus in the care of an older and trusted friend whose name was Mentor. and guidance to a less experienced. Levinson et al. The dynamics of the phases discussed with counselling are also applicable to mentoring. Tata Iron successfully used this arrangement. (1978) have contributed the most to the understanding of the mentoring process. counsellor. According to Levinson not having a mentor in formative years of a young person could be a great handicap to one’s psychological and career development. not necessarily from the protege’s department. host. Before going on his ten-year voyage (none of this weekend workshop stuff for Odysseus!). and the name of the older man who assisted the younger man in developing himself. followed by approval (getting guidance and checking alternative action ideas). it encourages continued learning. If the mentor is experienced as overwhelming and overpowering. Several well-known persons in the west having famous mentors passed through the counter-dependence phase. became a model for what is now known as mentoring. exemplar. During dependence phase admiration for the mentor is followed by identification with him. and most importantly supporter and facilitator in the realization of the vision the young person has about the kind of life he wants as an adult. availability. One mentor may have not more than five protege. Mentoring and Performance Coaching 14. Otherwise. Mentoring integrates characteristics of the parent-child relationship and peer support without being either. and “mentoring competence” (image of competence. The inter-dependence phase is characterised by trust-building and mutuality when the mentor and the protege may begin to collaborate and provide emotional support to each other. Although young person during their professional journey. A young manager assigned to a mentor. or protege).7 THE PROCESS OF MENTORING The word “mentor” comes from the Greek epic story about Odysseus who wandered the world seeking adventure and—you could say—personal development. who is senior in position and age sometimes several levels senior to the protege. Mentor not only helped the boy become a competent young man but also saved his life. and it improves the chances of success in the protege’s endeavours. Search of one’s own identity may later lead to appreciation of the mentor’s role and relationship. Mentoring is the process where a person (the mentor) provides support. Generally. 6 5 . and some could not make much progress to inter-dependence. The ultimate goal of both counselling and mentoring is to help an employee attain psychological maturity and effectiveness. There are two main phases in mentoring process: dependence and inter-dependence. The protege may reject the mentor and may develop his own independence. he may feel that the coaching is only artificial and may lose interest in it eventually. more promising young managers are given mentoring experience. empathy. and ability to provide emotional support). guide. developer of skills and intellect. mentoree. although counter-dependence may in some cases be an intermediary phase between the two. organisations are increasingly paying attention to this phenomenon. leading to inter-dependence. unknowingly research and discover appropriate mentors.Follow ups through informal exchanges go a long way in communicating interest in the employee. Mentoring process is quite similar to the counselling process. Mentors are selected on the basis of their interest. This relationship. training. Levinson’s concept of a mentor includes being a teacher. it improves the self-esteem of the protege. In Odysseus’ absence. usually younger person (the mentee.

Knopt. knowing their weaknesses and to grow and develop. V. (1995).R. (1974).8 SUMMARY Performance coaching is important as it helps the employees to realise their potentials. New Delhi. B. Nicholas Brealey. Pareek. J. and Weintraub. Viva Books.10 FURTHER READINGS Morrisey. (1976). Describe the process of performance coaching. Counselling Skills Training. Okum. Mentoring is the process where a person (the mentor) provides support. London. (2000). G. (1974). training and guidance to a less experienced person. influencing and helping and there are also phases of coaching. Contact Counselling. The Coaching Manager.V. 14. Sperry. The process of coaching involves communication. (2002). Write a note on the process of mentoring.F.9 1) 2) 3) 4) SELF ASSESSMENT QUESTIONS Define performance coaching and write its objectives. Durbury Press. 6 6 .R. J. (1978). citing examples. The Seasons of a Man’s Life. Designing and Managing Human Resource System.Human Resource Development 14. There are few conditions associated with these developments and also for effective coaching. J. and Rao T. Whitmore. dependence and interdependence. (2002). It involves two phases i. Effective Helping: Interviewing and Counselling Techniques.M. P. 14. L. Addison-Wesley. Burnard. Coaching for Performance. Addison-Wesley.L. and Hess. Oxford & IBH. Appraisal and Development through Objectives and Results.e. Levinson. D. New Delhi. Hunt. Response Books. Discuss the phases of performance coaching with suitable examples. L.

an individual occupies a hierarchical position in a system. etc. list criteria of effectiveness of teams. According to Katz and Kahn. and one’s own expectations from that position or office. and performs certain functions in response to his and the members’ expectations. are.9 The Concept of Role Role Systems Developing Roles: Roles Efficacy The Concept of Team Team Development Making Teams Effective Summary Self Assessment Questions Further Readings 15. you will be able to: l l l l l l l l Building Roles and Teams distinguish between position and role in a system. when one joins a new club. and one also expects to do the needful. such as the family. carry out certain activities when required. which in turn gives each one of them a defined place in the society. 6 7 . one is admitted as a member (that is an office or a position). Briefly then.5 15. together with one’s response to them comprise the role. identify role systems. individuals have certain obligations towards the system.7 15. club. One also agrees to abide by certain rules. two separate concepts. recognise the significance of role in person -system integration. define role efficacy and enumerate its different aspects. as defined by the functions one performs in response to the expectations of the ‘significant’ members of a social system. Structure 15. and suggest different ways of team building. defining each position in terms of its relationships to others and to the system as a whole”. work organisation. religious community. The other members of the club expect all this from the individual. Role and office (or position). “Office is essentially a relational concept. All these expectations. etc. identify different stages of team development. volunteer for certain work. and the individual’s place a position or an office.8 15.1 THE CONCEPT OF ROLE In any social system. though two sides of the same coin. distinguish a team from a group. however. Role is the position one occupies in a social system.6 15. For example.4 15.1 15.UNIT 15 BUILDING ROLES AND TEAMS Objectives After going through this unit..2 15. This system of mutual obligations can be called a role. One’s position as a member is defined in terms of the hierarchical placement and privileges (the power one will enjoy).3 15. along with the ensuing powers and privileges. In this case the former is the office (or position) and the latter the role.

his role is to maintain and protect the family. Using the currently accepted terminology suggested by Katz and Kahn. They ‘send’ expectations to the role. The father’s position defines his authority in the family. Exhibit 1 distinguishes between these two concepts. Figure 1 : Organization as a Structure of Offices/Positions A B C D E 6 8 F G H I J . defining an office holder’s power. certain expectations from the role. Office is concerned with the hierarchical position and privileges. Exhibit 1 : Office (or Position) and Role Office/Position Is based on power relations Has related privileges Is usually hierarchical Is created by others Is part of the structure Is evaluative Role Is based on mutuality Has related obligations Is non-hierarchical Is created by others and the role occupant Is part of the dynamics Is descriptive An organisation can be represented according to the offices. An office becomes a role when it is actually defined and determined by the expectations of other office holders (as reflected in the way an office is discharged by the concerned office holder). while a role is concerned with the obligations of position. Let us take an example. While office is a point in the social structure . consisting of the role occupant and those who have a direct relationship with him. There are certain expectations from the father that define his role—that he would earn for the family. In his position as the head of the family system. In some societies he is the final decision maker and the other members abide by his decisions. and in that sense the role occupant also is a role sender. role is the integrated set of behaviours expected from a person occupying that office.Human Resource Development While office is a relational and power-related concept. Each role has its own system. and thereby. Figures 1 and 2 represent a part of an organisation in two different ways. or the roles. protect the family against threats. While the position gives him some privileges. role is an ‘obligational’ concept. the role places certain obligations on him. In a family the father has both a position (office) and a role. etc. The role occupant also has expectations from his role. we will term the ‘significant’ others having expectations from a role as role senders.

and the expectations that he in turn.). and sometime it describes only the expected behaviour or activities (for example. how can we talk about a role in general. Confusion sometimes arises because the word role has two different connotations.. talk about the role of the Indian mother. but his role will be defined by the expectations (started or unstated) that different persons have from the personnel manager. etc. In this sense. These interact with each other and to some extent get integrated in a role. 6 9 . has from the role. the father’s role? While strictly speaking. the individual has his personality and needs (motivations). as defined by the expectations various ‘significant’ persons. We will use the term function to indicate a set of interrelated expectations from a role. have from that person.) For the sake of convenience we shall use the word role for a position a person holds in a system (organisation). However. e. a disciplinarian or an evaluator role of a teacher. therefore.g. along with the expectations from that position (e. The individual and organisation come together through a role. task and maintenance roles. developing a sales force and customer contact are the functions of a salesman’s role. etc. a question that can be raised is: If the role is defined in each case by the role senders.g. a role in general does not make much sense. define the role in each system. a policeman. Role is also a central concept in work motivation. the role a teacher.. in a larger social system the expectations from a role are largely shared. The position of a personnel manager may be created in an organisation. the role senders. as shown in Figure 4. including the role occupant. The concept of role is vital for the integration of the individual with an organisation. It is only through a role that the individual and an organisation interact with each other. and have common elements.Figure 2 : Organization as a System of Roles Building Roles and Teams I A B H G C F D E A role is not defined without the expectations of the role senders. Similarly. As shown in Figure 3 the organisation has its own structure and goals. including oneself. These are generalised. including the role occupant. etc. or the role of a chairman in a public sector concern. At times it denotes the position a person holds in an organisation. and we.

and the processes of role sending and role receiving together influence the role behaviour of the individual.Human Resource Development Figure 3 : Role as an Integrating Point of an Organization and the Individual Organization Structure Goals Role Individual Personality Needs Figure 4 : Role as a Region of Individual-Organization Interaction Individual Role Organization When a person becomes a member of a social system. a person’s role behaviour also influences the expectations of the role senders. calling the first. another individual may use the expectations he has from his role (what Kahn and Quinn call reflexive role expectations) and develop a role behaviour influenced by these expectations. The role occupant and the role senders constantly interact. at the same time projecting his own expectations from the role. One may react very positively and with great satisfaction to others’ expectations. In contrast. Katz and Kahn have proposed the concept of ‘role episode’ to explain the process of role taking. ‘role making’ the main difference being the use of one’s own expectations in defining a role and determining one’s own role behaviour (as in the latter case). The role senders have expectations on the basis of their perception of the role occupant’s behaviour. This is a ‘’proactive’ approach to role performance. Thus. a role episode has a feedback 7 0 . Role taking involves both role-sending (by the ‘significant’ others ) and role-receiving (by the role occupant). and fulfil them to the best of one’s abilities. Some authors have contrasted these two approaches. Either one of them (responding to others’ expectations or projecting one’s own expectations from one’s role) may dominates the other. However. ‘role taking’ and the second. and he responds to these. The role occupant acts on the basis of his perception of the role. Such a ‘reactive’ (responsive) approach will help individual take the role effectively. he ‘receives’ certain expectations from other members.

At the centre of the role space is the self. The term ‘self’ refers to the interpretations the person makes about the referent “I”. is a daughter. and so on. From the individual’s point of view there are two role systems: the system of various roles which the individual carries and performs. This we will term as inter-role distance or inter-role conflict. A person performs various roles.. a member of a voluntary organisation. However. and also amongst these roles. The other aspect of role taking is concerned with the identification of the self with the role. a salesperson.loop. family. Figure 5 presents the role space of a person “A”.). 7 1 . it may result in what we call self-role distance.2 ROLE SYSTEMS An organisation can be defined as a system of roles. a role itself is a system. and various roles occupied at varying distances from the self. The various roles of A are located in the four quadrants according to the context (i. For example. persons and systems. profession or recreation). It is a cognitive structure that evolves from past experience with other persons and objects. Even when there is no evident self-role distance. Katz and Kahn have further elaborated on this concept to include the interaction between role senders and the role occupants as well as the interpersonal and personality factors. there may be distance between two roles that a person occupies. The numbers 9 to 1. Building Roles and Teams 15. we will call role space and the second a role set. The distance between a role and the self indicates the extent to which the role is integrated with the self.e. and the system of various roles of which his role is a part. All these roles constitute the role space of X. a mother. if the expectations conflict with the self-concept. organisation. there is a distance between the self and the role. More segments of role space can be added in the diagram. or do not get involved in it. Self can be defined as the experience of an identity arising from a person’s interactions with the external reality – things. so also the concept of self is central to the several roles of a person. for the various circles. which are centred around the self. We shall use the term self-role distance to denote this. Similarly. These roles are at varying distances from the self (and from each other. The role space map of an individual can be drawn by locating the self in the centre. the role of club membership may be distant from the role of husband. A person X. the degree of role acceptance can be defined in terms of the intensity with which an individual is able to get into a role – the intensity may vary from casual role taking to a moribund identity with the role. Each individual occupies and plays several roles. When we do not enjoy a particular role. As the concept of role is central to the organisation. who is a personnel manager in a company. represent distances from the self—1 denoting the least distance and 9 the most. Role space then is a dynamic interrelationship between the self and the various roles an individual occupies. a member of a club. there will be role acceptance. The first. These relationships define the role space. However. If the role expectations are congruent with the self concept.

The role set is a pattern of interrelationships between a role. and those of the individual himself. Lesser distance indicates higher role linkages (which can be defined as the reverse of inter-role distance).Human Resource Development Figure 5 : Role Space Map of “A” ○ 9 8 7 6 5 4 3 2 1 ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ The expectations of other significant roles. Using a circular model. and the other roles. and all the other roles can be located at various points on the map. Figure 6 gives the role set map of a person “A”. Role linkage is an important concept in role satisfaction and role conflict. We will use the term inter-role distance to indicate the distance between the occupant’s role and other roles. The role set map for an individual’s role can be also prepared on the same lines as those suggested for preparing a role space map. the roles can be located in concentric circles marked 9 to 1-9 indicating the roles closest to the occupant’s role. 7 2 ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ . define the individual’s role in the organisation. and 1 indicating those which are the most distant. In a role set map the occupants role will be in the centre.

Figure 6 : Role Set Map of “A” ○ ○ Building Roles and Teams ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ Role sets are the sub-systems in an organisation. The more we move ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ 7 3 . his effectiveness is likely to be low. and if he constantly feels frustrated in the role. and the skills required for the role. This would enable the individual at the centre (called role set). his managerial experience. and I are indicated. his technical competence. If the role does not allow him to use his competence. C. role is a very useful concept in understanding the dynamics of the integration of an individual with a social system. D. B. It is the integration of the two (the person and the role) that ensures the person’s effectiveness in the organisation. In conclusion.3 DEVELOPING ROLES: ROLE EFFICACY The performance of a person working in an organisation depends on his own potential effectiveness as a person. These help an individual identify several possible role problems. E. 15. and when the individual is able to contribute to the evolution of the role. G.. To sum up. The focus on roles can be useful in planning organisational effectiveness. etc. Unless the person has the requisite knowledge. In Figure 2 nine role sets for the roles of offices A . H. The integration of the person and the role comes about when the role is able to fulfil the needs of the individual. F. as well as the way the role which the performs in the organisation is designed. and indicates a need to involve other significant persons in defining the role requirements. But equally important is how the role which he occupies in the organisation is designed. the concept of role goes beyond the individual job holder. technical competence. he can not be effective. It also helps in understanding the problems that arise in this individual-organisation interaction and integration.

and organisational diagnosis. his technical training. contrasted with “role shrinking” (making the role narrow. This is called self-role integration. However. the higher the efficacy of that role is likely to be. Role efficacy means the potential effectiveness of an individual occupying a particular role in an organisation. All of us want that our special strengths are used in the role so that it may be possible for us to demonstrate how effective we can be. whereas the second is a passive attitude (mainly responding to others expectations). This was seen as a convertible reward and the person was quite happy in getting such a well deserved promotion. The more these aspects are present in a role. making it more important. therefore. One dimension of role efficacy is called “role making” contrasted with role taking. These aspects can be classified into three groups. his efficacy was not as high as it was in the previous job. In one organisation. The more the role a person occupies provides an opportunity for the use of such special strengths. The potential effectiveness can be called efficacy. and reconciling oneself to its present importance or unimportance). Effectiveness of a person-in-a-role-in-anorganisation. Proactivity: A person who occupies a role responds to various expectations people in the organisation have from that role. may depend on his own potential effectiveness. In short. a person was promoted to a responsible position. The aspects in the second dimension are concerned with increasing the power of the role. 2) 7 4 . his efficacy will be higher. if there is distance between the self and the role. his efficacy will be low. But if a person feels that he would like to take initiative but has no opportunity to do so in the role he occupies in the organisation. the higher the efficacy is likely to be. This certainly gives him satisfaction. Dimension 1: Role making 1) Self-role Integration: Every person has his strength-his experience. confined to work-related expectations). Later when the role was redesigned to enable him to use his rare skills. the more the role is likely to be effective. role efficacy is potential effectiveness. Personal efficacy would mean potential effectiveness of a person in personal and interpersonal situations. or dimension. Inspite of his working very well in the new role. Role efficacy can be seen as the psychological factor underlying role effectiveness. the potential effectiveness of the role and the organisational climate. if he is also to take initiative in starting some activity. some unique contribution he may be able to make. However. This can be called “role centering” which can be contrasted with “role entering” (accepting the role as given. Aspects of Role Efficacy Role efficacy has several aspects. but proactivity (taking initiative rather than only responding to the others expectations) contributes much more to efficacy. his efficacy went up. The first is an active attitude towards the role (to define and make the role as one likes). role efficacy is likely to be low. As such. The reactive behaviour (responding to the expectations of others) helps a person to be effective to some extent. On the other hand. he soon discovered that in the new position he occupied. the special skills he may have.Human Resource Development from role taking (responding to the expectations by various other persons) to role making (taking initiative in designing the role more creatively in a way that the various expectations from others as well as of the role occupant are integrated). counselling. integration contributes to high role efficacy. and it also satisfied others in the organisation. The third dimension is called “role linking” (extending the relationship of the role with other roles and groups). he was not able to use his special skills of training. The self of the person and the role get integrated through the possibility of a person’s use of his special strengths in the role.

or refer these to their higher officers. they would bring their friends and relatives to proudly show the place where they were working. but about people even at the lowest level. it does not help him to have a high role efficacy. Not only did the satisfaction of people in that department go up. or shift the problems to some other people to solve them. However. if people in an organisation avoid problems.e. their potential effectiveness will be low. if a person feels that he has no power in the role he occupies in the organisation. The general tendency to confront the problems to find relevant solutions contributes to efficacy. his efficacy will be low. but delays were considerably reduced and some innovative systems emerged. the guard was trained to screen the requests of visitors who wanted to have some exceptions to the rule of coming only furring the visitors’ hours. class IV employee like ward boys and attendants had very high motivation when they joined the hospital. Certainly these were further discussed and modified. their role efficacy will be low. One obvious difference in low motivation of the former.. An investigation of this problem showed that within a few months of their joining the hospital. in another hospital. Conformation: In general. The more influence a person is able to exercise in the role. Every one working in an origination wants to feel that his/her role is important. This is true not only of persons at a higher level in the organisation. within a few months. In one State Government Department people performing some clerical roles met. he is likely to have low efficacy. his/her role efficacy is likely to be high. In contrast. with this. Building Roles and Teams 4) Dimension 2 : Role Centering 5) Centrality: If a person occupying a particular role in the organisation generally feels that the role he/she occupies is central in the organisation. in trying innovative ideas increased their role efficacy and their performance become markedly better than its previous level and compared with performance of some other departments in the same secretariat. i. They were rated as very low in their effectiveness. One factor which may make roles in the public-sector or civil service more efficacious is the opportunity to influence a larger sector in the society.3) Creativity : It is not only initiative which is important for efficacy. the higher the role efficacy is likely to be. they felt that their role was not important at all. And coming from nearby villages. as a part of reorganisation experiment. If persons occupying the various roles feel that their roles are peripheral. but the opportunity people get in being creative. The results were amazing. and search solutions. He used his discretion in making or not making exceptions in such cases. and higher motivation of the latter. In a large hospital. 7 5 6) . their perception changed about the perceived importance of their role. to discuss how each individual could experiment with a system of cutting delays in processing papers. and referred a case to the nurses or doctors only for clarification and guidance for himself. Influence: A related concept is that of influence or power. If he feels that his role does not allow any time or opportunity to be creative. Interviews with Class IV employees in this hospital showed that they perceived their roles as quite important. their efficacy is likely to be higher compared with situations in which they either deny such problems. was their perceived importance of their roles. On the other hand. they are not much important . sat in groups gossiping and not caring about the cleanliness. they neglected work. When people facing interpersonal problems sit down. If a person perceives that he has to perform only routine tasks. etc. talk about these problems. An opportunity to try new and unconventional ways of solving problems or an opportunity to be creative is equally important.

he had opportunities to grow further. if there is a feeling that either no help is given when asked for. groups and entities beyond the organisation. Dimension 3: Role Linking 8) Inter-role linkage: Linkage of one’s role with other roles in the organisation increases efficacy. if a person is a member of a task-group set up for a specific purpose. the efficacy of the various roles involved is likely to be high. The main factor contributing to this is the lack of opportunity for them to systematically grow in their roles. In many institutes of higher learning. Helping relationship: In addition to inter-role linkages. If persons performing a particular role feel that they can get help from some source in the organisation . the opportunity for people to receive and give help also increases role efficacy. his role efficacy is likely to be low. his efficacy.Human Resource Development 7) Personal growth: One factor which contributes effectively to role efficacy is the perception that the role provides the individual an opportunity to grow and develop. Regarding the personal profile of role efficacy. role efficacy will be low. When a person performing a particular role feels that what he does as a part of his role is likely to be of value to a larger group. If a person feels that he is stagnating in the role and does not get any opportunity to grow. There are several examples of people leaving one role and becoming very effective in another primarily because they feel that they have more opportunity to grow in the latter. The institutes which are able to plan the growth of such people in the roles are able to have higher efficacy and a great deal of contribution from them. they are active and interact with people and the environment. Roles in which people feel that what they are doing is helpful to the organisation in which they work. Of course.. The feeling of isolation of a role (that a person works without any linkage with other roles) reduces role efficacy. Many people have voluntarily accepted cuts in their salaries to move from the private sector to the public sector at the top level. Helping relationships is of both kinds—feeling free to ask for help and expecting that help would be available when it is needed. whenever they have such a need. One major motivation for people at the top to move to public-sector undertakings is to have opportunity to work for larger goals which are likely to help larger sections of the society. or that the respondents are hostile. One head of a training institute accepted the position by taking a big financial cut in his salary mainly because he felt that he had nothing more to learn in the previous role. with other factors being common. is likely to be high. Examples of executives of companies going for faculty roles in the institutes of management indicate the importance of the factor of self-development for role efficacy. finding solutions. he is likely to have low role efficacy. also results in some role efficacy. The roles which give opportunities to role occupants to work for superordinate goals have very high role efficacy. On the other hand. and persist in solving 7 6 . 9) 10) Superordination: A role may have linkages with systems. and those which cannot be achieved without some collaborative effort. But if a person feels that he does not get an opportunity to be of help to a larger group in his role. mainly because the new role would give them an opportunity to serve a larger interest. If there is a joint effort in understanding problems. research has shown that persons with high role efficacy seem to rely on their own strengths to cope with problems . they are likely to have higher role efficacy. the presumption is that people know how to work effectively. etc. and in the new role. Superordinate goals are goals of serving large groups. Similarly. the roles of the staff have low efficacy. as well as willingness to give help and respond to the needs of others. his efficacy is likely to be high.

Confrontation 1) 2) 3) 4) 5) 6) 7) 8) Take the employees into confidence while confronting a problem. Recommend replacement of a misfit in a job which can use his assets. Use failure of an employee as an experience and help him to learn from it. It seems that the climate promoting concern for excellence. Self. Encourage subordinates to solve problems and report to you. Arrange for visits of the employees to other organisation. Encourage and reward suggestions to solve problems. Some practical suggestions. and use these wherever possible. Creativity 1) 2) 3) 4) Encourage your employees to give ideas to solve problems. Building Roles and Teams Proactivity 1) 2) 3) 4) Minimise supervision of employees. They show positive and approach behaviour. 2000 for results of researches on role efficacy). Crate a climate which encourages people to generate ideas without fear of being criticised. give respect to their views. based on work in some organisations. as well as those of one’s employees. and feel satisfied with life and with their jobs and roles in their organisations.Role Integration 1) 2) Work with the employees in redesigning their roles in which their strengths can be utilised. are given for the supervisors to increase role efficacy of their employees. Anticipate problems in collaboration with your employees. use of expertise. On the other hand. 7 7 . Listen to the employees. Follow the “buck stops here” dictum. a climate characterized by control and affiliation seems to lower employee’s role efficacy (Sayeed and Pareek.problem mostly by themselves and sometimes by taking help of other people. Reward initiative of employees. and concern for the larger issues also contributes to role efficacy. Support the action taken by the employee if it is within the rules and procedures. Centrality 1) Communicate the importance of the roles to their incumbents (the critical contributions of the roles). Appoint a task group for a problem making decision. Appreciate and use new ideas given by the employees. and encourage them to ask for your help when they need such help. Increasing Role Efficacy One can plan to increase role efficacy of one’s own role. Encourage employees to bring problems. Such a profile is that of effective managers. in which the employees get higher job satisfaction contributes to role efficacy. Regarding organisational aspects a participative climate.

on the teams of which they are members.4 THE CONCEPT OF TEAM Most of the work in organisations is done in teams. Communicate accessibility to the employees. Give feedback to employees on their suggestions. What is a team? A team consists of individuals. Influence 1) 2) 3) 4) 5) Delegate enough authority. 15. Send good ideas of employees to higher management. Help the employees link (and see the linkage ) of objectives of their roles with organisational objectives. collection of individuals in a place may be only a crowd. Give increasingly difficult and challenging responsibilities. Give enough freedom to each employee to set his objectives and decide ways of achieving them. and respond to them positively. The main function of a group is to exchange task- 7 8 . Encourage them to include in their roles what may be useful for a larger section. new organisations can be described as composed of teams. Be willing to accept mistake. In modern organisations individuals are required to work in different types of teams. Do not snub the employees for their shortcomings but cooperate to improve them. Encourage employees to solve problems by working with their peer-level colleagues (and not refer the problems to you unless it needs your intervention). Helping 1) 2) 3) 4) Encourage the employees to respond to requests by other departments. Encourage team work. Encourage your employees to come to you for help. Even though individuals are important. Seek help of your employees in areas they can contribute. Delegate to them increasingly difficult and challenging tasks. Give relevant details of decision made. However.Human Resource Development 2) 3) 4) Communicate the importance of the roles as perceived by others. Growth 1) 2) 3) Appreciate employee’s work. their effectiveness depends. Encourage them to seek help from peers from other departments. Superordination 1) 2) 3) 4) 5) Help employees to understand and appreciate the contribution of their role to the society. then we have formation of a group. Inter-role Linkage 1) 2) Encourage employees to seek/render cooperation with departments. In fact. When the individuals come together for certain tasks. to a large extent.

15. i. Tuckman. There is mutuality and complementarity of the members of the team. 1961. Tuckman’s model has been widely accepted: forming. it has a common goal or goals. Tuckman & Jensen. 1970). Gibb. Kormanski & Mozenter (1987) integrated the various theories and suggested the following stages of team development. However. as shown in Exhibit 3. the team is accountable for results. storming. A team can be defined as a group of individuals working in face-to-face relationship for a common goal. The importance of teams was first realised by the results of the famous Hawthorne studies in 1930s. and adjourning. it was McGregor who gave special attention to teams in 1960s. financial) Teams Specific Collective Discuss.5 TEAM DEVELOPMENT Teams take time to develop.Bennis & Shepard.The accountability in the group remains of the individual. The most important characteristics of a team is that it creates synergy.g. 1977. Thus the group can be defined as a collection of individuals working in face-to-face relationship to share information and resources for a task to be achieved. Exhibit 2 : Difference Between Work Groups and Teams* Work Groups 1 2 3 4 5 6 7 Propose Work Products Process Leadership Meetings Accountability Evaluation Same as organisation Individual Discuss. 1958. do Shared Open. and different theories of groups development have been suggested (e. performing. 1956. The team is qualitatively different from the group in several ways. These stages are sequential (each stage is followed by the next one).g. and Yalom.e. the performance of the team is more than the collective performance of the individual members. a team has several characteristics : members are inter-dependent. A team is not formed merely by declaring some individuals as a team. having collective accountability for the outcome of its effort. 1965. Exhibit 2 shows the difference between groups and teams. Each stage has a task outcome and a relationships outcome. Schutz.. 1964. each member’s contribution is as important as any other member’s contribution. problem-solving Individual and mutual Direct (collective work product) Building Roles and Teams * Adapted from Katzenback & Smith. Bion. 1993 As already stated. Likert during the same period focused attention on teams as important elements of humanisation of organisations. The team functions almost like an individual. Tuckman (1977) summarising the various theories suggested five stages of group development. decide. delegate A single leader Efficient Individual Indirect (e. there is congruence between achievement of individual goals and that of the team goal. collective responsibility is taken. 7 9 . Each individual brings his/her competencies as well as the relevant information related to the task. norming. In other words.related information and discuss task-related issues. 1982. decide. A lot of research has been done on group formation and development.

Turnaround through Teams * Lakhanpal National Limited is a Japanese joint venture operating in India and producing and marketing the well-known Novino batteries.256. concludes “the Great Person model of turnaround maker has to be replaced by the growing Great Team model of turnaround facilitation (Khandwalla. The members get to know and accept to work together for a goal about which they have enough knowledge. Having resolved feelings. Cooperation: In the third stage the members own the team goals and get involved in those goals. The campaign was designed by Matsushita Electric. As a result several matters are clarified. Some of the sub-themes were: the formulation of a system for improving the health of the employees. 1992. The excellent work done by the members is recognised. In 1990. The following caselet illustrates how team can be used in turning around an organisation. the company launched the ‘Human 21’ campaign of innovation to ‘double performance’ by 1993. resulting in the feeling of belonging to the group. 1992). Seventy-two sub-themes were identified and teams were formed to pursue each one of these. some task-specific teams may decide to get dissolved. p. 2) 3) 4) 5) Pradip Khandwalla. . Productivity: This is the stage of real achievement of the goals/outcomes. Separation: Having accomplished the goals or the outcomes. Conflict: At the first stage (awareness) the members know the team goals and accept to work together. achievement of zero ageing of a particular type of battery. This is the stage of closure of the team. or a time-bound time comes to a close. and the team members achieving these objectives feel proud of their achievement. Each department/section undertook to double by 1993 the performance in its work area. They also fight with each and in this process of interaction resolve any hostilities they may have. who has done pioneering studies of turnaround of organisations. At the second stage they search and begin to ask questions. A company brochure explained ‘Human 21’ as a campaign to use all the potential energies within the staff in a visible and pronounced manner so that the company could be fully ready to meet the challenges of the 21st century. they also support each other. with modified title. reduction of the rejection of good cells by 50%. reduction of parts section manpower by 50%. By knowing the goals of the team they commit themselves to the goals.Human Resource Development Exhibit 3 : A Model of Team Building Stage One Two Three Four Five Theme Awareness Conflict Cooperation Productivity Separation Task Outcome Commitment Clarification Involvement Achievement Recognition Relationship Outcome Acceptance Belonging Support Pride Satisfaction 1) Awareness: At this stage individuals get to know each other. cutting of water 8 0 * Reproduced with permission from Khandwalla. reduction of falling of battery jacket on the floor by 50%. and the team members have a high sense of satisfaction of working with each other. or closure of one task on which the team was working. but this is at the surface level. one of the owners of Lakhanpal.

Commitment and Inspiring Goals 8. 21. improvement in working area and working conditions ‘twofold’. Exhibit 4 lists 10 main characteristics of effective teams. 14 3. These are natural teams of which organisation is composed. Notice the large range of areas where drastic improvement was sought. ‘professionalisation’. 10. 6. 5. Notice also the mundane. doubling the productivity of every manufacturing section. loading finished goods. preparation of consolidated sales report by the 5th of each month instead of the 10th. implementing systematic job rotation. preparation of accounts and reports. 19 1 15. 8. Exhibit 4 : Characteristics of Effective Work Teams (McGregor and Likert) McGregor 1. ‘morale’. 8. wastage. 3. Special teams which are 8 1 . 6. 6. 12. 9. preparing costing data within 20 days of the quarter ending instead of 40. doubling performance in three years would be an empty slogan. 4. 22 Several types of teams function in an organisation. reducing manual work load in preparing accounts by 50% through computerisation. and reducing electrical machinery breakdowns by 50% through better plant maintenance. goodwill. The strategy also seemed to be one of forcing innovation by overloading. 7. The most common are the teams composed of individuals who are assigned a particular task to be completed in a given time. These may be departmental teams or teams set up to complete some tasks. ‘technological excellence’. 24 20. 10 Likert 23 17 18. It is obvious that without innovation in every tangible area of operations. who gave importance to teams in 1960s.’ halving of electrical breakdown time loss. covering suggestions given both by McGregor and Likert. Not “image’. etc. maintenance. 11 10. 16 2. Building Roles and Teams 15. The strategy was of achieving large improvements through team effort in very many specific areas of operations. The numbers in the Exhibit refer to the serial number of the suggestions by Dyer. doubling of computer utilisation. 11 Opnness to Feedback 4 Competence Creativity with Constructive Confronting Collaboration/Support/Trust 1 Congruence between Individual and Group Goals Supportive Leadership Management of Power 2.12-16) has summarised 11 characteristics of an effective work team suggested by McGregor. ‘marketing excellence’ or other such abstract arenas of management. Dyer (1987pp. 9.consumption by 50%. listed a large number of characteristics of effective work groups or teams. reduction of telephone expenses by 50%.6 MAKING TEAMS EFFECTIVE McGregor and Likert. beautification of the reception area. 2. 5. 7. reduction of total inventory level by 50%. doubling sales to institutions and doubling of sales volume in various states. reduction of the import of spares by half. increase of output of a battery by 70% without increase in manpower. 13 Role Clarity 3. 9 Self-disclosure (including Confrontation) 5. 7. 4. lifetime employment and career development plan for employees. down-to-earth nature of them: production. and 24 characteristics of an effective work group as suggested by Likert. having the annual general meeting of the company within three months of year end instead of six.

To use the Joharl Window concept . There are several approaches to team building. In addition to work teams and other teams in the organisation attention also needs to be given to working of two or more teams together. 1971). shaper. plant. resource investigator. solving problems as they arise.. This can be done by developing a profile of a team based on individual members responses to an instrument (eg. Chapter 83) has developed an instrument to measure team effectiveness. and start or increase doing something which will make ones own group more effective. Based on such expectations negotiation between the two teams are to develop more and more collaboration between the two teams. 2) Role Negotiation Approach: Team building can be done by using role negotiation (Harrison. Inter team functioning is increasing in most organisations. help them to accept feedback from others with enough opportunity to explore further and increasing their sensitivity to and perceptiveness of others’ needs and orientations. company worker. Pareek (2002b. of these may be Project Teams. working together. support provided to the team in terms of resources etc. an effective team is one in which people give their opinions and comments without hesitation. Team effectiveness can also be understood in terms of team functioning and team empowerment. Special teams may also be constituted to complete a particular task. Collaboration depends on the individual’s orientation styles and attitudes. listen to others and examine others opinions comments and feedback given by colleagues at all levels. giving and receiving help to each other..e. as such significant attention is to be given to teams. 2002) are used to help individuals examine their styles and orientation and then increase their own effectiveness by 8 2 . confrontation i. Attention needs to be given to make all such teams effective in accomplishing their goals. completor/ finisher).. .Human Resource Development constituted to work on some assignments to be completed within a time period are called Task Forces. Members of the team share each others’ images and then list expectations of what they would like the other group to continue to do. 2002). i. team worker. stop or reduce. and are sensitive to the needs of others (called perceptiveness). How can we make teams more effective? The process of making teams effective is called team building. According to this approach some instruments (Pareek. and collaboration. monitor/ evaluator. autonomy of the team. depending on the kind of conceptual framework we use. The four main characteristics of team empowerment are: clarity of roles of different members of the team. Team effectiveness can be conceived from several angles. Team Roles Approach : As already mentioned Belbin (1981) suggested eight ‘team roles’ which people take (chairman/coordinator. 2002).e. rather than shying away from them. and accountability of the team to achieve the goals to which commitment has been made. 3) Behaviour Modification Approach: Team building can also be done by helping people to become more effective in their individual orientations. The Instrument in Pareek. using this concept. Team building can be done by setting up effective teams and developing teams (Pareek. Continuing groups or those which are set up for a particular period of time to deal with certain issues are generally called Committees. An instrument measuring effectiveness from this point of view is available (Pareek. Some of the approaches are as follows: 1) Johari Window Approach : According to this approach team building will involve helping individuals to take risk and frankly express their opinions and reactions. These may be cross-functional or inter departmental or inter-level teams. These are three main characteristics of team functioning: cohesion (amongst members of the team). 1993).

In this approach diagnosis is done on the basis of questionnaires. Members individually or in a small groups may prepare a picture of their team as they see it in the next five or seven years. (Pareek & Rao. Such analysis is helpful to move to the next step. as already suggested. Dyer (1978) has used this approach in his elaborate discussion of team building through five stages: data strengthening. 1991). if not eliminate them. action planning. 2002) can be used to help team members examine their bases of power. Hollow Square. Various games or exercises are used for this purpose. implementation. an instrument (Pareek. like Broken Squares. evaluation. Win As Much As You Can. A special future scenario will help to inspire individuals to move towards it. The future is a better diagnosis device than analysis of the past Linkage with individual goals: The future fantasy of the team should be linked with the individuals aspirations and goals. Reducing negative forces: The team can take up all the restraining or inhibit forces and can plan specific action steps to reduce. and appreciating positive qualities in each other. and how they can use their learnings from simulations to make their own teams effective. and the team may meet from time to time to review the progress of action being taken. and plan to increase their persuasive power. After people participate in such games they also discuss how similar dynamics operate in their backhome situation. 2) 3) 4) 5) 6) 8 3 . Using the concept of power. Building Roles and Teams 5) 6) Combining the various approaches the following steps are suggested for team building: 1) Projection in the future: The team may prepare a common understanding desirable future of the team. Maximising Your Gains etc. This is seen as an important way to enhance individuals’ potential for collaboration and team building. Action Research Approach: In this approach team building is done through several steps which are generally taken in action research or organisation development.modifying their behaviour. interviews or observations. data analysis. 4) Simulation Approach: Team building can be attempted by creating artificial teams in which people have an opportunity to experiment and learn from their behaviour in less threatening context. Appreciative Inquiry Approach: In this approach emphasis is given more on the positive aspects. Responsibility of monitoring can be taken up by one or two persons. and reducing negative forces a plan can be prepared to monitor action being taken. Monitoring: After decisions are taken to work on strengthening positive forces. The steps involved in action research and OD are taken in this approach. and the forces which are likely to hinder its progress towards the future. Strengthen positive forces: The team may go into details of reinforcing the positive aspects which may help the team to achieve its desirable future. Individuals in small groups may discuss how their own expirations and goals of life can be achieved through the ideal future of the team being developed by the group. . including inspiring future dreams or goods. Appreciative Inquiry (Cooperrider & Whitney. They can take each positive force and work out plans to strengthen it further. Force field analysis : the team may identify the forces which are positive and helping the team to move towards the desirable future. 1999) has become quite popular as a method of increasing collaboration amongst people for building strong teams.

Contribute ideas and solutions. Write a comprehensive note on “role efficacy” and enumerate its different aspects. New York : Wiley. Discuss different approaches to team development with illustrations. Supervisors can increase their subordinates’ role efficacy by adopting few measures like self role integration. Udai (1993) Making organisational roles effective. Sayeed. Members in effective teams: l l l l l l l l l l Understand and are committed to group goals. role negation. and interested in others. concerned.7 SUMMARY People play different roles in different positions and places. behaviour modification etc. which in turn is the role efficacy. and Encourage and appreciate comments about team performance. In organisation point of view. They have suggested that these characteristics are in a sequential pattern. New Delhi: Tata McGraw-Hill. Recognize and reward team efforts. R. proactivity. (1994) Team building: Issues and alternatives.D Shock & R. Team members have the responsibility of making their teams effective.Human Resource Development Whatever approaches are adopted for team building. There are several approaches to team development like Johari window.: Addison & Wesley .) (2000) Actualising managerial roles: Studies in role efficacy. Quinn. J. R.P. creativity etc. Pareek. Reading. Wolfe. emphasis should be given on understanding team effectiveness and taking steps to increase its level. 8 4 Dyer. Similar steps can be taken for building inter-team collaboration.8 1) 2) 3) SELF ASSESSMENT QUESTIONS Define “role” and distinguish role from position. The performance of a person in an organisation depends upon the integration of the person and the role he plays. Similarly teams consists of individuals with common objectives. Acknowledge and confront conflict openly Listen to others with understanding Include others in the decision-makfing process. Recognize and respect individual differences. 15. Mass. alternating task and relationship behaviours. Are friendly. 15. New Delhi : Tata McGraw – Hill. P.A.L. Organisational stress : Studies in role conflict and ambiguity. An organisation can be defined as a set of roles and a person plays various roles centred around himself. the concept of role is vital integrating an individual with an organisation. Value the ideas and contributions of others.9 FURTHER READINGS Kahn. Dyer (1987) also discusses ways of dealing with intra-team and inter-team conflicts. Role efficacy has three dimensions: role making. O.B & Udai Pareek (Eds. role centering and role linking. 15. Kormanski & Mozenter (1987) have suggested the following characteristics of team members contributing to team effectiveness. W. Rosenthal (1964). citing examples.

2 The Payment of Wages Act. In the light of its recommendations. The Payment of Wages Act is in three parts. social. It has ethical. realise the importance of Equal Remuneration Act for the betterment of female employees. (ii) the Minimum Wages Act. which it seeks to achieve. you should be able to: l l l l Laws Covering Wages. describe the main features of Payment of Bonus Act. deductions from wages and fines. political. 1936 16. and understand different social security benefits granted under social security enactments. 1976.4 The Payment of Bonus Act. The Constitution of India enshrines the concept of social justice as one of the objectives of the State. 1936. WELFARE AND BENEFITS Objectives After going through this unit. (iii) the Payment of Bonus Act. and the rules framed there under by the Government.1 Introduction 16. Part I deals with the regulation and 5 . 1976 16. Welfare and Benefits explain the salient features of Payment of Wages Act. 1937.9 Further Readings 16. The International Labour Organisation (ILO) has adopted various conventions and recommendations laying down the principles and methods of wage payment and fixation. economic. and the Act came into force from 28th March. 1948 16. was necessary and desirable. 1965. 16.6 Statutory Social Security Benefits 16. and legal ramifications in organisational life.5 The Equal Remuneration Act.2 THE PAYMENT OF WAGES ACT. l Structure 16. among other things. understand the main provisions of Minimum Wages Act.1 INTRODUCTION Wages are among the major factors in the economic and social life of any community. and (iv) the Equal Remuneration Act. The legal framework on wages in our country includes: (i) the Payment of Wages Act. the employers are also required to provide various benefits to the employees in cash and kind. among other things. 1936 The Royal Commission on Labour in its report (1931) recommended.8 Self-Assessment Questions 16. that legislation on timely payment of wages. the Government of India introduced a bill in 1936.UNIT 16 LAWS COVERING WAGES. 1965 16. 1948.7 Summary 16. Under different social security enactments. psychological. through labour legislation.3 The Minimum Wages Act.

Definitions “Wages” means all remuneration (whether by way of salary. railway.500 per month. allowances or otherwise) expressed in terms of money or capable of being so expressed which. by notification. ii) iii) Any contribution paid by the employer to any pension or provident fund and the interest which may have accrued thereon.Compensation and Reward Management payment of wages by the employer. water. extend the provisions of the Act after giving three months’ notice to that effect. iv) Any travelling concession. it does not include: i) Any bonus (whether under a scheme of profit sharing or otherwise) which does not form part of the remuneration payable under the terms of employment or which is not payable under any award or settlement between the parties or order of a court. The value of any house accommodation or of the supply of light. It is a selfcontained Act and provides its own machinery for the disposal of the claims. deduction from wages. iv) Any sum to which the person employed is entitled under any scheme framed under any law for the time being in force. 2002 provides for the enhancement of the wage ceiling to rupees 6. iii) Any sum which by reason of the termination of employment of the person employed is capable under any law. Part II specifies the heads under which deductions can be made from wages. and to prevent unauthorised deductions from the wages. Applicability The Act is applicable to persons employed in any factory. However.600 a month are covered under the Act. The Act contains 26 Sections. contract or instrument which provides for the payment of such sum. would be payable to a person employed in respect of his employment or of work done in such employment. The Payment of Wages (Amendment) Bill. Part III provides machinery for enforcing specific claims arising out of delayed payments. medical attendance or other amenity or of any service excluded from the computation of wages by a general or special order of the state government. 6 . It includes: i) ii) Any remuneration payable under any award or settlement between the parties or order of a court. etc. whether with or without deduction but does not provide for the time within which the payment is to be made. In the case of industrial establishments owned by the Central Government the notification can be issued with the concurrence of the Central Government. Any remuneration to which the person employed is entitled in respect of overtime work or holidays or any leave period. if the terms of employment express or implied were fulfilled. and to such other establishments to which the State Government may. The Act is concerned merely with the fixation of wage periods and not with the fixation of wages. Object of the Act The object of the Act is to regulate the payment of wages to certain classes of persons employed in industry in a particular form and at regular intervals. appeals. Employees whose average wage is less than rupees 1.

wharf. or other establishments in which articles are produced. Welfare and Benefits vi) Any gratuity payable on the termination of employment The term “establishment” includes: a) b) tramway service or motor transport engaged in carrying passengers and goods or both by road for hire or reward. roads.v) Any sum paid to the employed person to defray special expenses entailed on him by the nature of his employment. The weekly or other recognised holiday is to be excluded in computing the second working day. of India. after obtaining the written authorisation of the employed person. establishment in which any work relating to the construction. workshop. development or maintenance of building. plantation. No wage period shall exceed one month in any case. adapted. quarry or oil field. factory or industrial establishment in which less than one thousand persons are employed would be entitled to receive his wages before the seventh day of February and in other cases on the tenth day of February in respect of the wage period of January. The main purpose of this provision is to ensure that inordinate delay is not caused in the payment of wages and that a long time does not elapse before wages are paid for the period for which an employee has worked. the wage period fixed is the first day of January to the thirty-first day of January an employed person working in any railway. But the payment thereof must not extend over a period longer than one month (month means a solar month. dock. the employee is entitled to receive the wage earned by him before the expiry of the 2nd working day from the day on which his employment has been terminated. or class of establishments. or any other form of power is being carried on. 7 . All wages shall be paid in current coin or currency notes or in both. In the absence of the employer. mine. Wages may be payable daily. If for instance. a period of four weeks or 30 days). which the Central or a State Government may notify in the Official Gazette. air transport service other than such service belonging to. naval or airforce of the Union. or the Civil Aviation Department of the Govt. pay the wages either by cheque or by crediting the wages into his bank account.000 persons are employed. transport or sale. c) d) e) f) g) h) i) Wage Payment The responsibility for the payment of wages under the Act is that of the employer or his representative. The employer may. after the last day of the wage period. or jetty. with a view to their use. bridges or canals or relating to transmission. fortnightly and monthly. any other establishment. or distribution of electricity. or manufactured. In case the employer terminates the services of an employee. or exclusively employed in the military. weekly. wages shall be paid before the expiry of the 7th day and in other cases before the expiry of the 10th day. or Laws Covering Wages. a person who employs the labourers and with whom they enter into a contract of employment will be regarded as the employer. Where less than 1. inland vessel mechanically propelled.

50 per cent of such wages.Compensation and Reward Management Deductions from Wages Wages shall be paid to an employed person without deductions of any kind except those authorised by or under the Act. 8 . for payment of contribution to any welfare fund constituted by the employer for the welfare of employed persons and the members of their families. Withholding of increment or promotion (including the stoppage of increment at an efficiency bar). with the written authorisation of the employed person. All such deductions and realisations are to be recorded in a register. the Act specifies the heads from which deductions from wages may be made. There are also certain deductions peculiar to railways. and also for the payment of the fees payable by the employed person for membership of any registered trade union. such as deductions for recovery of losses sustained by railway administration on account of certain omissions and commissions on the part of the employees. However. if 10 or more employed persons acting in concert absent themselves without due notice and without reasonable cause. iv) No fine shall be imposed on an employed person who is under the age of 15 years. and in any other case. Deductions may be made by an employer. Such deductions can be made only after giving the person concerned an opportunity of showing cause against the deductions. such deductions may be made for a maximum period of 8 days. The total amount of deduction which may be made in any wage period from the wages of an employed person shall not exceed 75 per cent of such wages in cases where such deductions were wholly or partly made for payment to co-operative societies. These are: i) ii) A fine can be imposed only for such acts or omissions as are specified by the employer and previously approved by the State Government. However. A notice specifying such acts or omissions must be exhibited on the premises in which employment is carried on. v) No fine shall be recovered from an employed person by instalments after the expiry of 60 days from the day on which it was imposed. iii) A person involved must be informed in writing the reasons for imposing fine. There are certain conditions and limits subject to which fines may be imposed. vii) All realisations by way of fine have to be recorded in a register and must be applied only for such purpose as are beneficial to the persons employed in the factory or establishment as are approved by the prescribed authority. Deductions from wages for damage or loss caused to the employer by the neglect or default of the employed person have been laid down under the Act. The term ‘deduction from wages’ has not been defined in the Act. vi) The total amount of fine in one wage period shall not exceed an amount equal to 3 per cent for that wage period. The Act authorises deductions for actual absence from duty. reduction to a lower post or time scale or to a lower stage in a time scale and suspension are not deemed to be deductions from wages. from the wages payable to such an employed person.

9 . Deductions for amenities and services. Deductions for recovery of losses sustained by railway administration.Exhibit 16. claims arising out of deductions from wages or delay in payment of wages.1 List of Authorised or Permissible Deductions 1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) 12) 13) 14) 15) 16) 17) 18) Deductions for fines. Deductions for payment to co-operative societies and insurance schemes. Deductions of income tax. Obligations of Employers 1) 2) To fix the wage-period not exceeding one month. Deductions in respect of fees payable for the membership of trade union. Deductions for damage or loss. Deductions for absence from duty. Any contract or agreement whereby an employed person relinquishes any right conferred by this Act shall be null and void. Deductions made under orders of court. Deductions for contribution to the Prime Minister’s National Relief Fund. The Inspector of Factories is also the Inspector under this Act. Laws Covering Wages. Welfare and Benefits Authorities The Act makes provision for the appointment of inspectors. An appeal lies against the decision of the authority to a Court of Small Causes in a metropolitan town and before the District Court elsewhere within a period of one month. Deductions for contributions to provident fund. The authority under the Act can only adjudicate upon claims regarding deductions and delay in payment of wages and not upon any dispute in respect of wages. Deductions for house accommodation. Deductions for the welfare of the employed persons. Deductions for recovery of advances or for adjustment of over payment of wages. To pay wages in cash or by cheque after taking written authorisation of the employed person. The Act prescribes penalties for offences committed under the Act. Deductions for payment of insurance premia on fidelity guarantee bonds. Deductions for contributions to any insurance scheme. Deductions for recovery of loans granted for house building. for any specified area. Deductions for recovery of loans made for the welfare of labour. The Act also provides for the appointment of a person to be the authority to hear and decide.

To approach within six months the prescribed authority to claim unpaid or delayed wages. This Convention has become one of the most widely accepted instruments of the ILO. Not to impose fines exceeding 3% of the wages on the employee. To refuse to agree to any deductions and fines other than those authorised under the Act. the employer is required to display an abstract of the Act at a conspicuous place. The Minimum Wages Bill was introduced in the Central Legislature in 1946 and was passed in 1948. Obligations of Employees Every employee is entitled: 1) 2) 3) 4) To receive his wages in the prescribed wage period in cash or by cheque or by credit to his bank account. 16. To appeal against the direction made by the authority if the amount of wages claimed exceeds rupees one hundred. unauthorised deductions and fines along with compensation. To make deductions permissible from the wages of the employed person. before imposing fines approval of list of acts and omissions from the prescribed authority. 1 0 . inspection. 1948 The genesis of the Minimum Wages Act is traceable to the Minimum Wage Fixing Machinery Convention. Register of deductions for damage or loss. To recover fines within 60 days of the date of offence. Register of fines. To ensure that deductions do not exceed 75% where payment to a cooperative society is to be made. It is a piece of social legislation which provides protection to workers in employments in which they are vulnerable to exploitation by reason of the lack of organisation and bargaining power and where sweated labour is most prevalent. Object of the Act The Act aims to extend the concept of social justice to the workmen employed in certain scheduled employments by statutorily providing for them minimum rates of wages. To give show-cause notice to the employed person before imposing fines. Register of advances. 12) To maintain following register in the prescribed forms: i) ii) iii) iv) Register of wages. and in other cases. examination or inquiry under the Act. Apart from maintaining necessary records and registers. 10) To afford facilities to Inspectors for entry. 28) of the International Labour Organisation (ILO). 1928 (No.3 THE MINIMUM WAGES ACT.Compensation and Reward Management 3) 4) 7) 6) 7) 8) 9) To pay wages on any working day. supervision. To seek. deductions do not exceed 50%. The Act contains 31 Sections. 11) To display abstract of the Act and the Rules in English and in a language understood by the majority of workmen.

1948. control or payment of wages. 1970. A schedule appended to the Act gives a list of employments covered by the Act. Some of the important definitions are the following: Appropriate Government: In this Act. The appropriate government may add to the schedule any other employment in respect of which it is of the opinion that minimum rates of wages should be fixed. express or implied. supply of light. ii) iii) Any travelling allowance or the value of any travelling concession. the term “appropriate government” means: Central Government– for any scheduled employment carried on under the authority of Central Government or railway administrations and for a mine. Some of the employments are listed in Part I of the schedule. falling within the purview of the Contract Labour (Regulation and Abolition) Act. were fulfilled. water. Any contribution paid by the employer to any pension fund or provident fund or under any scheme of social insurance. which would. In any other case the person responsible for supervision. State Government– for any other scheduled employment carried on within its territory. and includes house rent allowance but does not include: i) The value of any house accommodation. be payable to a person employed in respect of his employment or of work done in such employment. The term ‘employer’ also includes: l l Manager of a factory as defined under the Factories Act. Head of department or any person appointed for the supervision and control of employees or Chief Executive Officer of a local authority in case the scheduled employment is carried on under Central Government or a local authority. Laws Covering Wages. The contract labour. l 1 1 . or v) Any gratuity payable on discharge. Welfare and Benefits Definitions The Act contains a number of definitions. iv) Any sum paid to the person employed to defray special expenses entailed on him by the nature of his employment. Part II of the schedule contains employment in agriculture and other allied activities. medical attendance. Employer: The term ‘employer’ means any person who employs one or more employees in any scheduled employment in respect of which minimum rates of wages have been fixed under the Act. Wages: “Wages” means all remuneration capable of being expressed in terms of money.Applicability The Act is not applicable to all employments or industries. or any other amenity or any service excluded by general or special order of the appropriate government. if the terms of the contract of employment. oilfield or major port or any corporation established by a central act. has to be paid mininum wages under the Minimum Wages Act. It covers an establishment regardless of the number of workers actually employed.

the appropriate government shall either: a) Appoint as many committees and sub-committees as it considers necessary to hold enquiries and advise it in respect of such fixation or revision. the appropriate government will. the appropriate government has fixed and notified minimum rates of wages. These bodies 1 2 . the Central Government is empowered to constitute a Central Advisory Board to advise Central and State Government. in a scheduled employment. Similarly. In fixing or revising the minimum wages.Compensation and Reward Management Employee: The term ‘employee’ means any person who is employed for hire or reward to do any work. Fixing of Minimum Rates of Wages When. children and apprentices iv) For different localities. by notification in the gazette. the decision shall come into force on the expiry of three months from the date of notification. The appropriate government may review wages at such intervals as they think fit but not exceeding five years. the employer is bound to pay every employee engaged in that employment at rates not less than the rates notified. in respect of an employment. or By notification in the Official Gazette. publish its proposals for the information of persons likely to be affected thereby and specify a date. manual or clerical. The minimum rates of wages may be fixed: i) ii) For different employments For different classes in the same employment iii) For adolescents. The rate fixed may consist of the basic rate of wages and cost of living allowance and the cash value of concessions in respect of supply of essential commodities at concessional rates. Unless otherwise provided. the appropriate government shall consult the Advisory Board also. The appropriate government may refrain from fixing minimum rates of wages in respect of any scheduled employment in which less than 1000 employees are employed in the whole State. on which the proposals will be taken into consideration. fix or revise the minimum rates of wages. When fixation is made on the basis of representations. The Act also empowers state governments to constitute Advisory Boards to co-ordinate the work of different committees and sub-committees and advise the government on the fixation of minimum wages. b) After considering the advice of the said committee or representations received. by the day or by the month or by any other longer period as may be prescribed. The rates may be fixed by the hour. and to co-ordinate the work of the Advisory Boards. as the case may be. not less than two months from the date of the notification. The government is not bound to accept the committee’s recommendations. The rates of wages may be: i) ii) A time rate A piece rate iii) A guaranteed time rate iv) An overtime rate. and revise them. skilled or unskilled. if necessary.

The Chief Labour Commissioner (Central) is in charge of implementation of the Act in the central sphere. an authority to hear and decide claims arising out of payment of wages at less than the minimum rates of wages and other incidental matters. payment of overtime in respect of scheduled employments. while others hold office during the pleasure of the government. a major port. Authorised deductions are allowed under the Act. authorised in writing. The authority so appointed has powers of a civil court. by notification in the Official Gazette for any specified area. It may direct the supply of essential commodities at concessional rates by notifying it in the Official Gazette. Inspectors The appropriate government appoints inspectors for the purposes of this Act. or any inspector can apply to the authority for settlement of disputes with respect to non-payment or payment of less than the minimum wages. who is called upon to provide any relevant information. and of independent persons not exceeding one-third of their total strength. The Inspectors are public servants. Abstract and Returns Every employer is required to maintain: 1) 2) 3) 4) 5) a) b) Register of wages Register of overtime payment Muster-Roll Register of Fines Register of deduction. Welfare and Benefits Registers. officers of the industrial relations machinery are entrusted with the enforcement of the 1 3 . The non-official members hold office for a period of two years. Enforcement The Central Government is the appropriate authority for the enforcement of the Act in relation to any scheduled employment carried on by or under the authority of the central government. rest day. Put up a notice containing the minimum rate of wages fixed Exhibit an extract of the Act and Rules Every employer is required to: c) Send annual return to the Labour Commissioner as prescribed. In the state sphere. Notices. or any corporation established by a central act.consist of an equal number of employers’ and employees’ representatives. An employee or any legal practitioner or any other official of a registered trade union. and defines the local limits within which they exercise their functions. Laws Covering Wages. Authorities under the Act The appropriate government appoints. Any person. But it also provides for authorisation of payment in kind where the appropriate government considers it necessary. oilfield. is legally bound to provide information to the inspectors under the provisions of Indian Penal Code. railway administration. The Act prohibits civil courts from entertaining any suits for the recovery of minimum wages payable under the Act. The appropriate government may fix the number of hours of work. The mininum wages payable under the Act are to be paid in cash. a mine.

in addition to the enforcement of other labour laws. The Government accepted the recommendations of the Commission with slight modifications. 2) 3) 4) 5) 6) 7) 8) 9) 16. Subsequently. The employer shall allow a rest day with wages to the employees every week which ordinarily should be Sunday or any other day.Compensation and Reward Management Act.4 THE PAYMENT OF BONUS ACT. No employee shall be required to work on a day fixed as rest day. Every employer shall issue a wage slip to every employed person in a prescribed form containing prescribed particulars. Obligations of Employers 1) Once the minimum wages are notified and become effective the employer must pay to every employee engaged in a scheduled employment under him wages at a rate not less than the minimum rate of wages fixed by such notification for that class of employees. Every employer shall get the signature or the thumb impression of every person employed on the wage group and the wage slips. The employer shall not make deductions from wages except those authorised by or under the rules. a small number of whole-time inspectors are appointed exclusively for the enforcement of the Act. The government may direct the supply of essential commodities at concessional rates by notifying it in the official gazette. The employer must pay minimum wages in cash unless the appropriate government authorises their payment wholly or partly in kind. Any contract or agreement whereby an employee relinquishes or reduces his right under this Act shall be null and void. Offences and Penalties The Act lays down penalties for violation of the provisions of the Act. the Government of India constituted the Bonus Commission on December 6. and agricultural departments have been authorised to work as inspectors for the purposes of the Act. panchayat departments. officials of the revenue department. there were a number of amendments to the Act. 1965. The employer may make deductions out of wages as may be authorised. and promulgated an ordinance on May 29. 1961. in addition to the officers of the labour department. The employer shall pay overtime at double the ordinary rate of wages for the period of work done beyond 9 hours on any day or 48 hours in any week or for rest day. the Act does not prevent an individual from entering into an agreement which is more advantageous or beneficial to him. 1965 In pursuance of the decision taken at the 18th session of the Indian Labour Conference. In some states. 1965. The Act came into force from October 25. In some states. 1 4 . The Act consists of 40 Sections and four schedules. The employer or his agent should authenticate the entries in the wage books and the wage slips. However. unless he is paid wages for that day at the overtime rate and is also allowed a substituted rest day with wages.

the legal representative of a deceased owner or occupier and the manager of the factory. Such an establishment continues to be governed by the Act notwithstanding that the number of persons employed therein falls below 20. water. be a contract of service between the person employed and the employer. in relation to any other establishment. manual. the Government of the State in which that establishment is situated. the period in respect of which profit and loss account is laid before the annual general meeting (first day of April or 31st of March). management and labour. Establishments also include departments.500 for applicability of the Act. the person who. Employer: The term “employer” includes: i) ii) Accounting year: The term “accounting year” means: i) ii) In relation to a corporation. in relation to an establishment which is a factory. It excludes the value of any house accommodation or of supply of light. In relation to a company. Appropriate Government: The term “appropriate government” means: i) ii) in relation to an establishment in respect of which appropriate government under the Industrial Disputes Act. 2002 provides for omission of the ceiling of rupees 3. technical. administrative. supervisory. undertaking and branches. 1947 is the Central Government. Laws Covering Wages. There must.500 per month in any industry doing any skilled or unskilled. or the authority which. Where the said affairs are entrusted to a manager or managing director. however. The term of employment may be expressed or implied. The Payment of Bonus (Amendment) Bill. retrenchment compensation. medical attendance or amenity or any service or of any concessional supply of foodgrains or other articles. and gratuity. then all the employees in an industry will be entitled to get bonus irrespective of their salaries/wages. Definitions Employee: The definition of “employee” includes any person (other than an apprentice) employed on a salary or wage not exceeding rupees 3. the owner or occupier of the factory. including the agent of such owner or occupier. 1 5 Salary or Wage: The term “salary or wage” includes i) ii) . any contribution paid or payable by the employer to any pension fund or provident fund. has the ultimate control over the affairs of the establishment. the year ending on the day on which the books and accounts of corporation are to be closed and balanced. any travelling concession.Object of the Act The object of the Act is to maintain peace and harmony between labour and capital by allowing the employees to share in the prosperity of the establishment reflected by the profits earned by the contributions made by capital. basic pay and dearness allowance but not any other allowance. If this provision comes into force. or clerical work for hire or reward. Welfare and Benefits Applicability The Act applies to all factories and establishments employing 20 or more persons on any day during an accounting year. managerial. such manager or managing director is the employer. in relation to any other establishment.

unless a separate balance sheet and profit and loss account are prepared and maintained in respect of them. adjustment can be made towards payment of customary or puja bonus against bonus payable under the Act. The excess of allocable surplus. There is also a provision under the Act for proportionate reduction in bonus where the employee has not worked for all the working days in any accounting year. the bonus is to be paid out of the allocable surplus. Amount of Bonus The Act imposes a statutory obligation on the employer to pay bonus at the minimum rate of 8. Under the Act. Theft.Compensation and Reward Management Calculation of Bonus If an establishment consists of different departments or undertakings or branches. in the alternative. whichever is earlier. In case of a company. From the gross profit certain prior charges are to be deducted to arrive at the available surplus. The Fourth Schedule illustrates the method of distribution and set-off or set-on of the amount available for bonus out of the allocable surplus. Newly set-up establishments get exemption from payment of bonus for a period of six years following the accounting year in which the goods produced or manufactured are sold for the first time and. and in other cases it is 60 per cent. up to the year when the new establishment shows profits. and once they are treated as parts of the same establishment. The maximum is fixed at 20 per cent. the amount distributed as bonus shall be carried forward for set-off and adjusted out of the allocable surplus. If an employee is found guilty of misconduct causing financial loss to the employer. after distributing the maximum bonus as provided shall be set-on and taken into account up to the fourth accounting year.33 per cent of the salary earned by an employee or rupees 100. in an accounting year. if any. However.500 per mensem.500. provided that he has worked in the establishment for not less than 30 working days in that year. misappropriation or sabotage of any property of the establishment. whether situated in the same place or in different places. whichever is higher. they should be continued to be treated as such. the bonus payable to such employee shall be calculated as if his/ her salary or wage was rupees 2. all such departments or undertakings or branches should be treated as parts of the same establishment for the purpose of computation of bonus. In the case of any shortage or want of allocable surplus. the allocable surplus is 67 per cent of the available surplus. Eligibility for Bonus Every employee shall be entitled to be paid bonus by his employer in an accounting year. It shall be paid irrespective of profits and loss or whether there is allocable surplus or not in an accounting year. Where the salary or wage of an employee exceeds rupees 3. then the employer can deduct the amount of loss from the amount of bonus payable to the employee for the year in which he was found guilty of misconduct. Riotous or violent behaviour while on the premises of the establishment. The determination of gross profit is the first step towards calculating the amount of bonus. 1 6 . An employee will be disqualified from receiving bonus if he is dismissed from service for: a) b) c) Fraud.

It will not apply to the recovery of bonus which is payable under the Act. Laws Covering Wages. 1 7 . If there is a dispute. Welfare and Benefits Claim for Bonus If any bonus is due to an employee under a settlement. then the statements and particulars contained in such balance sheets and profit and loss accounts will be presumed to be accurate. or any other person authorised by him in writing in this behalf. Exemption The Act does not apply to the following establishments: i) Newly set up establishments or units or branches of existing establishments for six years from the date of starting production unless such establishments make profit. may make an application for its recovery to the appropriate government. The Act provides for the appointment of inspectors and for the maintenance of registers and records. iv) Deposit Insurance Corporation. The Act provides for different offences and corresponding penalties.e. v) Industrial Development Bank of India. The appropriate government may extend the said period up to a maximum of 2 years.Time Limit for Payment of Bonus The bonus shall be paid within a period of 8 months from the close of the accounting year. Mode of Payment Employees can enter into an agreement or a settlement with their employer for grant of bonus under a formula different from that under the Act. 1947. If the trade unions require any clarification. his assignee or heirs. The application must be made within one year. the court may direct the employer to furnish necessary clarification. Government institutions. If accounts are audited by duly qualified auditors of a company or by the Comptroller and Auditor-General of India. may issue a certificate to the collector to recover the same as arrears of land revenue. vii) Unit Trust of India.. However. the employee himself. the mode of recovery prescribed shall be available only if the bonus sought to be recovered is “under a settlement or an award or an agreement”. bonus linked with production or productivity. viii) Industrial Finance Corporations. i. A dispute about bonus payable under the Act will have to be raised by the employees concerned in accordance with the provisions of the Industrial Disputes Act. or in the case of death of the employee. vi) Agricultural Refinance Corporations. it shall be paid within one month from the date on which the award becomes enforceable. or any corresponding state law applicable to them. award or agreement. ii) iii) Reserve Bank of India. but subject to the provisions of the Act in respect of payment of minimum and maximum bonus. It shall not be necessary for the corporation or the company to prove the accuracy of such statements. The government. if satisfied.

If the appropriate government.......... Maintain the following registers: l l l Register showing the computation of allocable surplus..................... x) Employees of insurance companies and the Life Insurance Corporation..... ................. .... ............................................................. xiv) Hospitals.................. indicate the system of payment and the rates of payment made during the last three years? . such establishment or class of establishment. xii) Stevedore labour............ ................. Obligations of Employers 1) 2) Work out and pay annual bonus to the employees as required under the Act............................................................ 3) Submit an annual return of bonus paid during the year............. xi) Seamen............Compensation and Reward Management ix) State Financial Corporations....................................... ...................................................................................................................... chambers of commerce and social welfare institutions.................................................................................................................................................................................................................................................................................................. having regard to the financial position and other relevant circumstances of any establishment or class of establishments is of the opinion that it will not be in public interest to apply all or any of the provisions of this Act thereto....................... Activity A Did your establishment pay bonus according to the Payment of Bonus Act? If so......... ......................... ..................... ....................................................................... ................... it may............................................................................................................................... Register showing set on and set off of the allocable surplus............................. xiii) Universities and other educational institutions.......... xv) Inland water transport....... Activity B If your establishment is not paying bonus as per the Act.................................. deductions there from and the amount disbursed..................... exempt for such period as may be specified therein and subject to such conditions as it may think fit to impose...................... ....................................................... Register showing the details of the amount of bonus due to each employee............................................................................................................................................ xvi) Employees employed through contractors on building operations.......................................................................................................... ...................................................................................... from all or any of the provisions of the Act...................................................... mention the percentage of bonus paid to employees during the last three years................... 1 8 ............ by notification in the Official Gazette.............................................

1908. except where the employment of women in such work is prohibited or restricted by or under any law for the time being in force. the Government of India. or work done in such employment. The aggrieved employer or worker may prefer appeal to the appellate authority within 30 days from the date of the order. No discrimination shall be made while making recruitment for the same work or work of a similar nature between men and women workers. not below the rank of a Labour Officer. the Central Government framed rules known as the Equal Remuneration Rules.16. The Act provides for penalties for violation of provisions of the Act. It came into force from 11th March 1976 throughout India in the employments notified for the purpose. to hear and decide claims and complaints. 1976. against women in the matter of employment. Definition The term remuneration includes basic wage or salary and any additional emoluments payable. which received the assent of the President of India on 11th February 1976. The authority appointed for this purpose shall have all the powers of a civil court under the Code of Civil Procedure. were fulfilled. It also seeks to provide for increasing opportunities for women in the specified employments. express or implied. 1976. The appropriate government may appoint an authority. It is the duty of employers to maintain prescribed registers and other documents in relation to the workers employed by them. such as promotions. Exemption The requirement of equal treatment for men and women will not apply in certain special cases in so far as: 1 9 . Object of the Act The object of the Act is to provide for the payment of equal remuneration to men and women workers and for the prevention of discrimination. on ground of sex. 1976 Laws Covering Wages. Equal Remuneration It is the duty of the employer to pay equal remuneration to men and women workers for the same work or work of a similar nature. on the 26th of September 1975 promulgated the Equal Remuneration Ordinance. In exercise of the powers conferred under Section 13 of the Act. The Ordinance was replaced by the Equal Remuneration Act.5 THE EQUAL REMUNERATION ACT. training. if the terms of the contract of employment. Administration For the purpose of providing increasing employment opportunities to women. Welfare and Benefits To give effect to Article 39 of the Indian Constitution. and transfers. to a person employed in an employment. The appropriate government may appoint inspectors for the purpose of enforcing the provisions of the Act. either in cash or kind. The Act prohibits discrimination against women not only in recruitment but also in relation to the conditions of service subsequent to employment. the appropriate government may constitute one or more Advisory Committees.

2: Benefits under Social Security Legislation in India Laws Workmen’s Compensation Act. payment of bonus. 1952. 1948. the Minimum Wages Act. If the appropriate government is satisfied that the differences in regard to the remuneration of men and women workers in any establishment or employment are based on a factor other than sex. 1972. disablement benefit. Exhibit 16. Any special treatment is accorded to women in connection with the birth. pension. Additional benefit for miscarriage. the Payment of Bonus Act. 1952 Maternity Benefit Act. by notification. make a declaration that any act of the employer attributable to such a difference shall not be deemed to be a contravention of any provision of this Act. and occupational disease Benefit for sickness and extended sickness benefit. and (5) the Payment of Gratuity Act. of a child. These statutory provisions cover matters regarding regular and prompt payment of wages. provident fund. or expected birth. and deposit-linked insurance Payment for actual absence upto 12 weeks on average daily wages. permanent total disablement. and the Equal Remuneration Act. 1923. maternity. (2) the Employees’ State Insurance Act. in any respect. pension. medical benefit. 1961. funeral benefit. maternity benefit. prevention of discrimination against women and equal remuneration to men and . affected by compliance with the law regulating the employment of women. temporary disablement. (3) the Employees’ Provident Funds and Miscellaneous Provisions Act. 16. and illness arising out of pregnancy Employees’ State Insurance Act. (4) the Maternity Benefit Act.6 STATUTORY SOCIAL SECURITY BENEFITS Social Security legislation in India in industrial field consists of the following enactments: (1) the Workmen’s Compensation Act.Compensation and Reward Management a) b) The terms and conditions of a workmen’s employment are. periodical fixation and revision of minimum wages. it may. dependants’ benefit. rehabilitation benefit Refundable withdrawals. permanent partial disablement. 1948 Employees’ Provident Fund and Miscellaneous Provisions Act. minimum wage or rupees 10. deposit-linked insurance To provide for maternity protection before and after child birth 16. 1961 To provide compulsory provident fund. and employment injury Benefits Compensation for death. 1923 Objectives To provide compensation for workmen in cases of industrial accidents occupational diseases resulting in disablement or death To provide for health care and cash benefits in the case of sickness.7 SUMMARY 2 0 The various labour enactments governing wages are the Payment of Wages Act.

. Eastern Book Company. What is the procedure the government has to follow in fixing and revising minimum wages under the Minimum Wages Act. New Delhi. disablement. 1999. 1948? The Payment of Bonus Act has no relevance in the present economic situation of the industry. Corporate Strategy and Fringe Benefits. Employees’ State Insurance Corporation. maternity. Tata McGraw-Hill Publishing Company Ltd. Delhi.L. Maternity Benefit under the Maternity Benefit Act. What are the obligations of an employer under the Equal Remuneration Act. ESI Scheme of India –Employers’ Guide. Labour Laws. 2 1 . Industrial Law.9 FURTHER READINGS Aswathappa K. Thakur C.. Universal Book Traders. Welfare and Benefits 16. Discuss.. and gratuity under the Payment of Gratuity Act.. and occupational disease under the Workmen’s Compensation Act.8 1) 2) 3) 4) 5) SELF-ASSESSMENT QUESTIONS List out the various deductions under the Payment of Wages Act. New Delhi. Human Resources and Personnel Management. Laws Covering Wages. and dependants’ under the ESI Act. March 2003. disability. benefits for sickness.L. Mallick P. 1976? What are the statutory social security benefits available to workmen/employees in India? 16. 1936. Kumar H. Spectrum Publishing House. 1997. 1995..women employees for the same work. Lucknow. Legally required social security benefits include compensation for death. pension and insurance under the Employees’ Provident Fund and Miscellaneous Provisions Act. Delhi.P. provident fund. or work of a similar nature.

12 18.UNIT 18 REWARD MANAGEMENT Objectives After going through this unit. the old reward system in the new business is often not good enough and indeed can lead to failure. to understand pay systems in organisations.8 18. evaluate the role of financial reward systems in improving organisational performance.3 18.14 18. in particular. Often new lines of business require a different approach and therefore a different reward system.6 18. developing a new reward system for one part of an organisation can cause problems in other parts because of the comparisons made between different parts.1 INTRODUCTION Reward systems and their role in organisations have been studied from many perspectives and by multiple disciplines.16 18.5 18. sociology and psychology.4 18. have contributed to the growing literature on reward systems.1 18. Thus.11 18.17 Introduction Motivational Aspects Reward Systems Incentives and Rewards Competence-Related Pay Skill-Based Pay Team-Based Rewards Profit Sharing Gain Sharing Stock Options Merit Pay Employee Ownership Employee Benefits Case Study Summary Self-Assessment Questions Further Readings 18. 3 7 . l Structure 18. Economics.2 18.10 18. and that their impact is greatly affected by their design and by the organisational context in which they operate.9 18.15 18.13 18. it is necessary to focus on the characteristics of both the organisation and the pay system. you should be able to: l l l Reward Management understand the relationship between motivation and rewards. and take note of different types of employee benefits and their trend.7 18. On the other hand. Reward systems have a wide-ranging impact on organisations. formulate different reward systems in an organisational setting. Simply putting.

This seems to occur because high reward levels lead to high satisfaction. For individuals to make this kind of prediction. and skill-based pay plans have replaced job-based plans in many manufacturing locations practicing participative management. If an organisation wishes to operate in a participative manner. A substantial literature does exist that focuses on the relationship between reward systems and the degree to which participative management is practiced. maintenance. They argue rather convincingly that for effective participative management a different approach to pay for performance is required. The connection between performance and rewards must be visible. To retain them. The argument for this essentially rests on the point that traditional pay plans support individual excellence at the cost of team performance. The best performers represent a particularly interesting retention problem. implementation. and managed. how it is perceived. Depending on how reward systems are developed. gain sharing has become increasingly popular in the last decade. This line of reasoning goes back to the early writings on the Scanlon plan and writings of McGregor. reward system practices are changing in consistent with participative management. it is not always clear how a climate of trust in the reward system can be established. they can motivate the learning of skills and the development of knowledge (Lawler. The belief that performance will lead to rewards is essentially a prediction about the future. and a climate of trust and credibility must exist in the organisation. they have to trust the system that is promising them the rewards. However. reward systems have been demonstrated to motivate performance. Overall. Individuals need to see a connection between learning specific skills and a valued reward. it needs to change all its systems. Of late. When certain specifiable conditions exist. Reward systems influence attraction and retention of employees. a reward system has to work on a par with those received by individuals performing similar jobs at a similar level in other organisations. Unfortunately. administered. including its reward system. 1971). They go on to suggest that the correct approach is to pay bonuses based on group or plant-wide performance. For example. The reward systems in hierarchical organisations acts as a strong motivation to learn those skills that are perceived to lead to promotion. communication and evaluation of reward processes. 1990). Pay for performance systems may motivate learning and development because individuals perceive that they must develop their skills in order to perform effectively.Compensation and Reward Management 18. they may cause the culture of an organisation to vary quite widely. This can happen when the skills that should be learned are not directly related to present performance. they may 3 8 . which in turn leads to lower turnover and more job applicants. For example.2 MOTIVATIONAL ASPECTS Reward management is about the development. One way to accomplish this is to reward everyone at a level that is above the reward levels in other organisations. those organisations that give the most rewards tend to attract and retain the most people (Lawler. Just as reward systems motivate performance. The emphasis here is on external comparisons because turnover means leaving an organisation for a better situation as well. and the needs of people. For success of participative management team performance needs to be rewarded. Sometimes pay for performance systems may discourage individuals from learning new skills or motivate them to learn wrong skills. performance motivation depends on the situation. Reward systems also contribute to the overall culture and climate of an organisation. To counter this tendency some organisations are using skill-based pay when they want individuals to add new skills that do not involve promotions.

an entrepreneurial culture. public recognition. The most common are wages or salary. and awards. Make the reward system fair and effective. the pay system alone represents about 40 per cent of an organisation’s operating cost. A great deal of research has been done on what determines whether an individual will be satisfied with the rewards he or she receives from a situation. the way they are distributed have a profound effect on the quality of work life as well as on the effectiveness of organisations. For majority of people. The system must be easy to understand if it is to be used effectively. and status symbols are perhaps the most important rewards. Ensure participation in the reward system. incentive systems. Organizations typically rely on reward systems to do four things: 1) 2) 3) 4) motivate employees to perform effectively. promotions. Examples of recognition and rewards include money. filling out forms. Make the reward system simple to understand. The following five conclusions can be reached about what determines satisfaction with rewards: 1) Satisfaction with reward is a function of both how much is received and how much the individual feels should be received.influence the degree to which it is seen as a human resources-oriented culture. there is no clear evidence that increased earnings will necessarily lead to higher performance. Reward Management 18. When individuals receive less than 3 9 . There are several principles for setting up an effective reward system in an organisation: l Give value to the reward system. Pay systems involve direct pay and benefit costs. trophies. a competence-based culture. parties or celebrations or other meaningful considerations. Involve people in the reward process and empower them to do the needful. Because these rewards are important. Employees must have a preference for the types of rewards being offered. motivate employees to join the organisation. as well as the costs associated with managing and operating the system. special assignments. Lay down performance standards within the control of the team. Reward systems are often a significant cost factor in organisations. motivate employees to come to work. Elaborate procedures for evaluating performance. Some employees like to see their name in the company newsletter. certificates or citations. Pay. the most important reward for work is the pay they receive. an innovative culture. Many employees prefer cash awards and plaques.3 REWARD SYSTEMS One of the important attributes of work organisation is its ability to give rewards to their members. Indeed. For one thing. official perquisites. and a participative culture. Others like the public recognition surrounding award ceremonies. and review by several levels of management lead to confusion. benefits and perquisites. an effectively planned and administered pay system can improve motivation and performance. plaques. and motivate individuals by indicating their position in the organisation structure. Surprisingly. fringe benefits. Money may not actually motivate people. l l l l l Most organisations use different types of rewards.

One group feels money is the most important. 3) 4) 5) An effective reward system should link reward to performance. effort or attendance.5 COMPETENCE-RELATED PAY Competence-related pay may be defined as a method of rewarding people wholly or partly by reference to the level of competence they demonstrate in carrying out their roles. they also may experience internal feelings that are rewarding to them. Both groups. Also. pay. 18. they are dissatisfied. Financial incentives are designed to provide direct motivation – ‘do this and you will get that’. Competence-related pay is not about the acquisition of competence. This definition has two important points: (1) pay is related to competence. The overall job satisfaction of most people is determined both by how they feel about their intrinsic rewards and how they feel about their extrinsic rewards. they must offer rewards comparable to their competitors. and (2) people may be rewarded with reference to their level of competence. These include feelings of competence. improve their performance or enhance their competence or skills by focusing on specific targets and priorities. as long as people expect that further achievements will produce worthwhile rewards. motivate and retain qualified and competent employees. Financial incentives aim to motivate people to achieve their objectives. In addition to obvious extrinsic rewards individuals receive (e. promotion. personal growth. A shop-floor payment-by-result scheme or a sales representative’s commission are examples of financial incentives. of course. 2) People’s feelings of satisfaction are influenced by comparisons with what happens to others. or because of their symbolic value. and are usually made with similar people. 4 0 . while another group feels interesting work and job content is. for organisations to attract. Financial rewards provide financial recognition to employees for their achievements in the shape of attaining or exceeding their performance targets or reaching certain levels of competence or skill. An achievement bonus or a team-based lumpsum payment are examples of financial rewards. Management must ensure that workers perceive distribution of rewards as equitable. and self-esteem. Workers who work hard and produce more or give better quality results should receive greater rewards than poor performers. they tend to feel guilty and uncomfortable. People differ widely in the rewards they desire and how much important the different rewards are to them. It is about the effective use of competence to generate added value. Financial rewards provide a tangible form of recognition and can therefore serve as indirect motivators. Furthermore. Incentives are forward looking while rewards are retrospective.4 INCENTIVES AND REWARDS A distinction may be drawn between incentives and rewards.g.Compensation and Reward Management they feel they should receive. Competence-related pay works through the processes of competence analysis of individual competences and levels of competence. These comparisons are made both inside and outside the organisations they work in. When they receive more than they feel they should. are able to find examples to support their point of view. status symbols). achievement. innovation. 18. Individuals tend to rate their inputs higher than others. Many extrinsic rewards are important and satisfying only because they lead to other rewards. criteria for receiving rewards should be clear and employees should know whether they are going to receive rewards for quality performance..

Initially they may provide strong motivation for individuals to increase their skills. First. it permits labour costs to vary with the organisation’s ability to pay. Profit sharing is associated with participative management theories. fabricators. 18.8 PROFIT SHARING Profit sharing is better known. But skill-based pay is usually concerned with the skills used by manual workers. 18. it is seen as a way to encourage employees to think more like owners or at least be concerned with the success of the organisation as a whole. (b) to stimulate a greater interest among employees in the affairs of the company as a whole. and (c) to encourage better cooperation between management and employees. the acquisition and application of additional skills by the person carrying out the job. the behaviours and attributes an individual has to use to perform a role effectively are assessed in addition to pure skills. The fundamental aim of gain sharing is to improve organisational performance by creating a motivated and committed workforce as part of a successful company. Individual oriented plans often place little emphasis on these broader goals.6 SKILL-BASED PAY Reward Management Skill-based pay links pay to the level of skills used in the job and. The traditional forms of gain sharing are the Scanlon Plan and Rucker Plan. but its potential costs as well as its benefits need to be evaluated rigourously before its introduction. To develop and manage team rewards it is necessary to understand the nature of teams and how they function. The fundamental objectives of profit sharing are: (a) to encourage employees to identify themselves more closely with the company by developing a common concern for its progress. older and more widely practiced than gain sharing. The most important advantage of profit sharing is that it makes labour costs of an organisation variable and adjust them to the organisation’s ability to pay. Most Japanese firms have used this approach to adjusting labour costs for decades. 18.based pay may in many ways seem to be a good idea.7 TEAM-BASED REWARDS Team-based rewards are payments or other forms of non-financial rewards provided to members of a formally established team which are linked to the performance of that team. 4 1 . In competence-related pay schemes.18. sometimes.9 GAIN SHARING Gain sharing is a formula based company or factory-wide bonus plan which provides for employers to share in the financial gain made as a result of its improved performance. Skill. Second. Team-based rewards are not always easy to design or manage. and operators. Rewards for individuals may also be influenced by assessments of their contribution to team results. Profit sharing is a group-based organisation plan. Some companies have effectively used their profit sharing plans as vehicles for educating employees about the financial performance of the business. But they may outlive their usefulness and hence need to be revised or even replaced if they are no longer cost effective. The term is sometimes used interchangeably with competence-related pay. The logic behind profit sharing seems to be twofold. Team based rewards are shared amongst the members of teams in accordance with a scheme or ad hoc basis for exceptional achievements. including fitters.

gain sharing plans usually distribute any bonus payments with greater frequency (e. The employee’s gain is equal to the market value of the stock at the time it is exercised. Several trends have increased the attractiveness of stock options as a long-term executive incentive and retention tool. The price at which the employee can buy the stock is equal to the market price at the time the stock option was granted.10 STOCK OPTIONS The stock option is the most popular long-term incentive. they do not necessarily motivate them to stay. under gain sharing. Unorganised locations tend to remain non-union. As gain sharing plans do not pay more for better performance. involvement. and they demand more efficient management. monthly or quarterly versus annually). teamwork. When implementing gain sharing a company must enlist the involvement of all employees so that it can increase their identity with. First. Attitudinal change occurs among workers. and commitment.. Lawler (1971. not just quantity of production. Third. When unions are present. Moreover. The assumption is that the price of the stock will go up. Employees try to reduce overtime – to work smarter. they are strengthened because better work situations and higher pay result. gain sharing plans do not fit in with every situation. l l l l l l There are. the plan. gain sharing plans distribute payment during the current payment rather than deferring them as profit sharing plans often do. Employees produce ideas as well as effort. A stock option is the right to purchase a specific number of shares of company stock at a specific price during a period of time. more flexible administration of union-management relations occur. Social needs are recognised via participation and reinforcing group behaviour. certain limitations of gain sharing plans. Acceptance of change due to technology. 1990) has summarised some of the common results that have been found in research studies of gain sharing plans: l l l l Coordination. The goal is to link pay to performance outcomes that employees can control. rewards are based on a productivity measure rather than profits. and their commitment to. When unions support the plan. better planning. and sharing of knowledge are enhanced at lower levels. rather than go down or stay the same. and build a large core of enthusiastic supporters. Perhaps the most important is differentially attracting and retaining the best performers. There are three main principles on which gain sharing is based – ownership. 4 2 . Attention is focussed on cost savings. Second. less the grant price. 18. Gain sharing differs from profit sharing in at least three ways.g. however. The potential benefits of gain sharing are that if focuses the attention of all employees on the key issues affecting performance and enlists the support of all employees towards this. market and new method is greater because higher efficiency leads to bonuses. and good performance from their co-workers.Compensation and Reward Management The success of a gain sharing plan depends on creating a feeling of ownership that first applies to the plan and then extends to the operation. It also encourages teamwork and cooperation at all levels. Unlike profit sharing it pays bonus even when the organisation is not earning profits.

Considerable evidence suggests that most organisations’ performance appraisal is not done well and as a result. Merit pay systems typically give salary increases to individuals based on their supervisor’s appraisal of their performance. The empirical literature indicates that benefits do indeed have effects on employee 4 3 . and (c) to have labour costs vary with the organisational performance.Stock options are similar in many ways to profit sharing plans. The objectives of employee benefits are: (a) to increase the commitment of employees to the organisation. (b) to enhance employee identification with the organisation. The purpose of merit pay is to improve motivation and to retain the best performers by establishing a clear performance reward relationship. For instance. They provide a quantifiable value for individual employees. it may positively affect the structure by creating integration across the total organisation if. or may provide an immediate benefit like a company car. good measures of individual performance do not exist. unit. like Pepsi-Cola and Hewlett-Packard. Stock options have long been a common programme for executives. In small organisations in which participative management is practiced it has a good chance of increasing organisational performance. stock purchase plans. (c) to meet the personal security and personal needs of the employees. have a great potential to influence the employee. The basis for payouts is organisational performance in the stock market. which may be deferred or contingent like a pension scheme.11 MERIT PAY Merit pay is the most widely used approach for paying performance. therefore.13 EMPLOYEE BENEFITS Employee benefits are elements of remuneration given in addition to the various forms of cash pay. however. and Employee Stock Ownership Plans (ESOPs). 18. is likely to be highly situational. and improvement in recruitment and retention rates. Ownership can have a more positive impact on attraction and retention than does profit sharing. These include stock option plans. and organisational outcome variables. insurance cover or sick pay. Benefits in general do not exist in isolation. Important goals of the plan are: (a) to motivate employees to act in the best interest of the organisation as a whole. they can contribute substantially to employee motivation. In a large organisation they may contribute to the integration of the organisation and to a positive culture. Benefits represent a large share of total compensation and. It also includes elements that are not strictly remuneration. 18. In a large organisation with little employee ownership. and if combined with an appropriate approach to employee involvement. They are a part of comprehensive compensation package offered by the organisation. grant them to all employees. (b) to demonstrate that the company cares for the needs of its employees. of course. but some organizations. in the case of small organisations they might make profit sharing and gain sharing unnecessary.12 EMPLOYEE OWNERSHIP A number of plans exist that help get some or all of the ownership of a company into the hands of employees. and (d) to ensure that benefits are cost-effective in terms of commitment. There is evidence that this approach is becoming more widespread. The usefulness of employee ownership. all employees are included in the ownership plan. Reward Management 18. such as annual holidays.

This fact coupled with the rising costs of benefits and a desire to allow employees to choose what they want led employers to search for flexible benefits. Maternity Benefit Act. or to provide an incentive to be more productive. credit cards. in due course. it motivates employees and leads to increased morale.Compensation and Reward Management attitudes. Employees’ Provident Fund and Miscellaneous Provisions Act. The term flexible benefits refers to a system whereby employees are presented with a set of benefits and are asked to select. it appears that individual preferences may play a particularly important role in determining employee reactions to benefits. 1947 also provides for compensation in cases of lay-off. and Payment of Gratuity Act are statutory benefits. social security benefits under the Workmen’s Compensation Act. Also it helps in attracting and retaining quality employees in an organisation. and (c) the administrative complexities involved in actual operation. within monetary limits imposed. special leave. Trends in Employee Benefits l l l Less attention to tax avoidance Greater simplification of benefit package More attention to individual needs 4 4 . retention. educational assistance. health insurance. When an employer considers offering benefits to employees. retrenchment and closure of industrial establishments. For instance. the main disadvantage of flexible benefits is: (a) wrong selection of benefits in some cases. Companies learn. employee discounts. Such individual differences. one of the main considerations is to keep costs down. Employees’ State Insurance Act. Employees viewed benefits as “given”. and mobile telephones. Traditionally. of course. It helps the employer to decide the nature and quantum of benefits. (b) keeping track with changing benefit needs of employees. The aim of flexible benefits programmes is to confer specific advantages to both the employee and the employer. The major voluntary benefits are: vacations. employers attempted to do that by providing a slate of benefits to their employees – irrespective of their need or use. The Industrial Disputes Act. sick leave. lend greater weight to the need for offering employees a choice in the design of their benefits package. Flexible Benefits There are significant individual differences in benefit preferences. The menu of voluntary benefits offered to employees by employers is quite astounding. perhaps at a lower total cost to the employer. Statutory benefits are to be given to the employees by the organisation regardless of whether it wants to or not. that these benefits offered did little to motivate their employees. However. Further. and carry significant cost to the employer. holidays. many organisations have implemented benefit plans that permit some degree of employee’s choice in the hope that a better match between preferences and benefits will be obtained. and manage the costs more effectively. Flexible benefits plan will help control costs and enhance employee satisfaction. The employees have the freedom to choose benefits that are tailored to their specific needs. subsidised meals in canteens. the benefits they desire. medical benefits. Statutory and Voluntary Benefits Employee benefits may be classified as statutory and voluntary. and perhaps job choice. recreational facilities. Consequently. In some cases.

..... he was keenly aware of the importance of a highly motivated workforce................ depended on it........................... If a customer sends a defective part back to the company................................. Shah had to ensure that each employee would work as diligently as possible for the good of the organisation........... ........................................................................... and how the company’s success...................................................................................... When Neeraj Shah established the company in 1970.............................................. ............................................................................ 18........................................ Therefore................................... .......................................................... Providing stock options: Shah also provided his employees with the option of buying company’s stock at a low cost............... Workers get the bonus if the company’s annual profit increases............................................. in fact....................... The system includes the following components: Paying by the piece rate: Production workers are paid according to the number of “pieces” or product units they produce that are not defective...... ...... Shah introduced a year-end bonus system that gives all workers an opportunity to nearly double their base wages.................................. ....................................................................................................................................................................................................................14 CASE STUDY The Indian Electric Company is a city-based manufacturer of welding machines and motors..... ......... Shah developed and implemented a comprehensive incentive system...........................................................................l l l l Great emphasis on individual choice A move towards cash rather than benefits in kind Greater concentration on assessing the cost/effectiveness of total benefit package More attention to communicating the benefits package Reward Management Activity A Analyse the recent trend of reward system in your organisation................................................................................................................................... Its aim was to improve the company’s overall performance by allowing contributing workers to share in the proceeds...................................... 4 5 ..................................................................................................................................................................... What is its impact on cost of production/service? Is it favourable or unfavourable? Why? .................... Employees are also given shares of the company’s stock based on annual profits................................................... The plan rewards employees for turning out quality products efficiently while controlling costs.............................................................. Providing year-end bonus: To reward workers further for their efforts................................................................................................................................................... the employee who produced it must repair it on his or her own time.................................. Shah realised that the best way to motivate employees would be to link the company’s reward and recognition system to its goals............................ Activity B What voluntary benefits do you think will be offered to employees in the year 2010? .............................................................................. ......... To establish this connection................................ .................................................................................

Richard D. Employee Benefits. 18. continual escalation of their cost may lead to major problems in the future. programmes.16 SELF-ASSESSMENT QUESTIONS 1) 2) 3) “An organisation cannot attract and retain competent employees today without a good benefit package.A.J.. Megginson. 1998.. New Jersey. D. When an organisation is designing its overall compensation programme. London. Personnel and Human Resources Administration. their cost effectiveness. The types of rewards that an organisation offers its employees play a crucial role in determining the level of motivation. Englewood Cliffs. They ought not be looked at as competing approaches. The Wage and Salary Audit. Leon C. rewards have an impact on the quality and quantity of personnel that the organisation is able to recruit. Prentice Hall. In addition.. England. 1977. one of the critical areas of concern is the benefits package. but as often as compatible approaches that accomplish different objectives. DeCezo. and their contribution to the organisational effectiveness? l 18. Further. Reward Management. Schofield A.” Do you agree or disagree with this statement? Why? In future. the compensation policies. While rewards serve a valuable purpose for both the employer and the employee. and practices of an organisation will revolve around newer reward systems and benefits.15 SUMMARY Organisational rewards include both intrinsic and extrinsic rewards. Discuss. Explain. Irwin. Stephen. gain sharing and profit sharing can all be useful practices for many organisations. 1989. Kogan Page Ltd. The kind of financial rewards that organisations give to individuals can vary widely. Homewood. and Husband T. Gower Press..17 FURTHER READINGS Armstrong M.. and Murlin H. hire. 4 6 . 18. and retain. 1977. Employee ownership.Compensation and Reward Management Discussion Questions l What would be the future expectations of Neeraj Shah from the employees of Indian Electric Company? How would he ensure further continuation of financial rewards. rewards have a motivational effect on both individuals and groups.. and H.

resolution and set-up the necessary structure so as to create congenial climate.8 Introduction Statutory Machinery Voluntary Machinery Mediation and Litigation Lok Adalats Summary Self-Assessment Questions Further Readings 19.3 19. or between workmen and workmen.2 STATUTORY MACHINERY The Industrial disputes Act. labour laws had a protective function consisting of established standards both to protect workers in their workplace and to provide them a basic minimum level of living conditions. 1947 provides the mechanics of dispute.UNIT 19 REGULATORY MECHANISMS IN INDUSTRIAL RELATIONS Objectives After completion of the unit. familiarise yourself about the voluntary mechanisms for settlement of Industrial Disputes.7 19.1 INTRODUCTION Traditionally. you should be able to: l Regulatory Mechanisms in Industrial Relations familiarise yourself about different mechanisms for settlement of Industrial Disputes. 19. Hence. which is connected with the terms and conditions of employment of any person. and be aware of the new trends in this area. voluntary machineries come into existence.5 19.6 19. Because of changing industrial and economic scenario. or between employers and workmen.4 19. In this unit. What is an ‘Industrial Dispute’? An ‘Industrial dispute’ means any dispute or difference between employers and employers.2 19. Who can raise a Dispute? A dispute is said to have arisen when some demand is made by workmen and it is rejected by the management or vice versa and the demand is relating to the 5 . regulatory mechanisms for prevention and settlement of industrial disputes comprises of statutory and voluntary machinery. along with statutory machineries. l l Structure 19. we will be discussing on these machineries and also concept of lok adalats.1 19.

but if the workmen as a body or a considerable section of them make a common cause with the individual workman then such a dispute would be an industrial dispute. certain individual disputes relating to dismissal. 6 . A workman can raise a dispute. he cannot take the decision. In such cases conciliation officer will investigate the dispute and induce the parties to corne to amicable settlement. retrenchment or termination of services of a workman. If no settlement is reached then also he has to report to the government giving reasons on account of which settlement could not be reached. However. If an agreement is reached by the parties. like conciliation officer. But dispute in relation to a person who is not a ‘workman’ within the meaning of the Act is not an industrial dispute under Section 2(k). Its functions are to preserve amity and establish cordial relations and to resolve differences of opinion on matters of common interest. 4) Court of Enquiry The government may constitute a court of enquiry to enquire into any matter connected with an industrial dispute. These are as follows: 1) Works Committee In establishments where hundred or more workers are employed: a) b) c) The appropriate government may require the employer to set-up works committee. conciliation officer shall hold conciliation proceedings and it is mandatory. 3) Board of Conciliation The government may notify constitution of board of conciliation for promoting settlement of an industrial dispute. However. Duty of conciliation officer is to mediate in and promote the settlement of industrial disputes. he has to send report of settlement to his government. it is pertinent to note that a dispute between an employer and single workman does not fall within the definition of industrial dispute. In the case of board of conciliation the object is to promote settlement of an industrial dispute.Employer-Employee Relations employment. Duty of the conciliation officer is administrative and not judicial in nature. However. Conciliation officer to normally submit report within 14 days of commencement of conciliation proceedings. It is composed of equal number of representatives of workmen and management who are chosen with consultation of the trade union. 1947 provide for creation of different authorities to preserve industrial harmony. But in the case of a court of enquiry object is to enquire into and reveal the causes of an industrial dispute. it is binding on both the parties. The Industrial Disputes Act. Its role is also consultative. 2) Conciliation Officer a) b) The conciliation officer may be appointed by the government for specified area or specified industries. discharge. prevention and settlement of industrial disputes. The Act implies even to industrial establishments employing a single workman. are also covered. Where industrial dispute exists or is apprehended and relates to public utility.

8) Welfare Officer Another preventive measure is under the Factories Act. Hours of work and rest intervals. The number of arbitrators can be one or even more than one. Individual disputes are to be referred to the courts when not settled at grievances authority level. Bonus. Shift Working. 7 . Compensatory and other allowances. Labour courts and industrial tribunal may be constituted by the state government while national tribunal is constituted by the central government. and All matters (not specified for industrial court). 7) Grievance Settlement Authority It is to be set-up enterprises where 50 or more workers are employed. Classification of grades.. Here both parties are willing to go to an arbitrator of their choice and submit to his decision. Legal sanctity to this mode of settlement of industrial disputes was given in1956 when Section lOA was introduced in Industrial Dispute Act. The cases either may be referred by government to court after the receipt of failure report from conciliation officer or directly by any party. 1948. Leave with wages and holidays. i.5) Voluntary Arbitration It is voluntary method of resolving individual disputes if dispute is not settled by negotiating parties. Illegality or otherwise of a strike or lock-out. Withdrawal of any customary concession or privilege. Rules of Disciplines. and 10) Retrenchment and closure of establishment.e. Provident Fund and Gratuity. Arbitrators are named by the parties in the written agreement. 6) Adjudication The Industrial Disputes Act provides for three-tier system of adjudication of industrial disputes. Discharge or dismissal of workman. i) Labour Courts: Functions of labour courts are relating to matters as under: 1) 2) 3) 4) 5) 6) Legality of an order passed by an employer under the standing order. This for settling of individual grievances of employees. Regulatory Mechanisms in Industrial Relations ii) Industrial Tribunals: The functions of industrial tribunals are as follows: 1) 2) 3) 4) 5) 6) 7) 8) 9) All matters within jurisdiction of labour courts. iii) National Tribunal: The national tribunal shall be constituted by the Central government (only) when undertakings in more than one stage is affected by such industrial dispute and is of ‘national importance’ and matters relate to functioning of labour and industrial courts. Application and interpretation of standing orders. the appointment of welfare officer in the organisation if workers are 500 or more. Wages.

retrenchment and closure and also regarding lock -out and strikes which imposes restrictions on the employers and employees. Defining of unfair labour practices on part of employees/unions and employers which have deterrent affect as penalties are provided under [Section 2(ra)] of lndustrial Disputes Act. Provisions of laws relating to lay-off. b) c) In nutshell. evaluates labour laws and policy decision and suggests measures to improve them. iii) fixation of minimum wages. an employer cannot make any change in conditions of service without giving to the workers a 21-days’ notice and follow the prescribed procedure for changing them. statutory preventive and settlement machinery can be summarised in the Table 1. labour laws. evaluates major strikes and lock-outs.. 1947. These standing orders require enterprises to lay down uniform terms and conditions of employment of workers. Their main functions are: i) ii) prevention. etc. investigation and settlement of industrial disputes in industries. 1947 which discourage disputes are as under: a) According to Sec. or enforcement of labour laws and awards. 10) Central and State Industrial Relations Machinery Central Industrial Relations Machinery consists of the Chief Labour Commissioner and Regional Labour Commissioner together with Labour Enforcement Officers. Table 1: Statutory Machineries 1) 2) 3) 4) 5) 6) Works Committee Conciliation Officer Board of Conciliation Court of Enquiry Voluntary Arbitration (a) Labour Courts (b) Industrial Tribunals (c) National Tribunal 7) Grievance Settlement 8) Welfare Officers 9) Standing Orders 10) Centre and State Industrial Relations Machinery 11) Other Preventive Measures (for consultation) (for conciliation) (for conciliation) (for enquiry) (for arbitration) (for adjudication) (Settling individual grievances) 8 . The machinery has regional Offices. 9 A of Industrial Disputes Act. awards and settlements. and iv) central implementation and evaluation machinery ensures implementation of code of discipline.Employer-Employee Relations 9) Standing Orders Another preventive measure is certification of standing orders by enterprises under the Industrial Employment Standing Orders Act. 1946. 11) Other Preventive Measures Some other provisions laid down in Industrial disputes Act. verification of union membership. take preventive action by settling disputes.

It aims at preserving industrial peace with the help of employers and employees.19.3 VOLUNTARY MACHINERY Regulatory Mechanisms in Industrial Relations Voluntary machinery for settlement of industrial disputes is based on Code of Discipline announced in 1958. which aims at providing an alternative to conflict for the resolution of disputes. The representatives of the four central trade union organisations . It represents a voluntary moral commitment and is not a legal document. the willingness and enthusiasm of the parties to observe the code has declined. the provision in this regard has been incorporated in the Code of Discipline. saying that the emerging method of dispute resolution which is speedy. Industrial Truce Resolution. however. in a joint meeting of their organisations held on November 3. It has proved to be difficult for them to abide by self-imposed discipline in terms of obligations backed only by moral sanctions. Discipline in the relationship between workers and employers can better be enforced if both the parties accept their responsibilites and show a willingness to discharge them. Nanda. and they have developed an attitude of indifference to the code. 1962. 1) Code of Discipline. With the Chinese attack in October 1962. vi) Managements and trade unions agree to establish grievance procedure on a mutually agreed basis. v) The two parties shall not resort to the unfair labour practices detailed out in the code. worked very well for some time after its adoption. The issue of discipline in industry was discussed in the Indian Labour Conference and the code of discipline was framed and introduced by that tripartite body in 1958. 1962 at New Delhi. passed a resolution. The main elements of the code are: i) ii) The two parties agree to utilise the existing machinery for the settlement of industrial disputes. In the absence of any statutory provision at the all-India level for the recognition of trade union. AITUC. an emergency was declared in the country. 2) Code of Conduct The other code adopted in May 1958 was the code of conduct.L. The code. The code was approved by all central organisations of workers and employers in 16th Indian Labour Conference at the initiative of the then Labour Minister. The parties shall not resort to strikes and lock-outs without first exploring all avenues of settlement iii) The parties accept that the disputes not settled mutually shall be referred to voluntary arbitration. 1958 The code reflects the policy of the government to build up an industrial democracy on voluntary basis and is the sheetanchor of Mahatma Gandhi’s philosophy of industrial relations. Shri G. Employers’ and workers’ representatives. 1962. Over the years. iv) The code specifies the criteria for the recognition of trade union and creates an obligation on employers to recognise the majority union in an establishment or industry.the INTUC. less costly and which ends in win-win situation. The number increased to around 3000 by the end of 1967. the code was accepted voluntarily by about 900 independent employers and trade unions. Initially by the end of March. and it was realised that production should not be jeopardised in any way. HMS and UTUC - 9 .

this is also a three-tier machinery. on the other hand. It only means that the dispute is resolved. who is a neutral third party. In India. Persons with good resources are likely to win the game. was introduced by the colonial masters as a top down model. and management and workers will strive to collaborate in all possible ways to promote the defence efforts of the country. The role of the judge is limited to that of an umpire. The adversary method is one which gives the parties and their lawyers a great deal of control over the way in which the facts are collected and presented. there was a sharp decline in the number of disputes and in the number of mandays lost. In the past it was these respectable and elderly people who used to help in resolving disputes through mediation or mediation-cum-arbitration in Panchayats. Mediation is an informal process where the mediator. Litigation involves lot of delay. Workers’ Participation in Management Scheme was introduced through Formation of Shop Councils and Plant Council. It is alien to Indian culture and never got imbibed into the Indian culture. 19. What happens in Lok Adalats is only mediation in a formal way. for trade unions seem to have forgotten that it exists. 1 0 As a result of the acceptance of this Resolution. This is not a good way of resolving disputes in situations such as family relations or industrial relations where no effort shall be spared to achieve maximwn production. Industrial Committees. Standing Labour Committee. Even now mediation as a method of dispute resolution is quite common in India. Limitations of Litigation There are many limitations associated with litigation. When mediation is done in a formal way it is called conciliation. the adversary method of dispute resolution is used in litigation. ensuring that the evidence is presented in accordance with certain ground rules. Inter-union and intra-union rivalries emerge out of certain weakness of Indian trade unions such as fragmentation and multiplicity.4 MEDIATION AND LITIGATION Mediation is very much a part of Indian culture. Litigation. The adversary method of dispute resolution promotes game theory of dispute resolution. Respectable and elderly people acting as mediators or functioning as Panchayat members is integral to Indian culture. It is expensive. Each party will present the evidence to the Court in a way most favourable to its own version of the facts and adverse to that of the other party. Workers not only worked for . But it has remained mainly on paper. Winning the game in an adversary system does not necessarily mean justice is done or there is peaceful solution to the dispute is found. Collective Bargaining was encouraged. Formation of Joint Consultative Machinery for Central Government Employees (JCM). 1954. assists the disputing parties in the pursuit organization finding a solution to their dispute. 3) Tripartite Bodies The other tripartite bodies which came into existence were: a) b) c) d) 4) 5) 6) Indian Labour Conference. The code was formulated to curb these evils. and Tripartite Committee on International Labour Organisation Conventions.Employer-Employee Relations agreed to observe certain principles with a view to maintaining harmonious interunion relations.

But the Resolution lost its importance when prices rose sharply and disputes erupted once again. A conciliator mediates and persuades the parties to reach a settlement. Sovereign power and Peoples’ Court cannot go together. The term Lok Adalat literally means Peoples’ Court. Moreover mediation is cheap and quick in resolution of disputes. It was developed as a mechanism for providing quick solutions to disputes with practically no expenditure involved for the parties. the mediator needs to normalise the strained relations between the disputing parties. In a mediation there can be one or more mediators. The Legal Services Authorities Act. Court is popularly understood to be a place where disputes are resolved through decisions made by a judicial authority. Prior to its operationalisation. In fast changing industrial scenario. Once the emotional and ego-related aspects associated with the dispute are soothed. it becomes easy to find solution to their problems. Though enacted in 1987. Emergency Production Committees were set-up. it ends up in a win-win situation.5 LOK ADALATS Lok Adalats is product of judicial activism and is a recent phenomenon. Mediation as a method of dispute resolution has many advantages in situations where human emotions are involved. For mediation has to be successful. The role of mediator includes facilitating communication between the parties. Lok Adalats also help in reducing backlog of cases pending before Courts and Tribunals. In order to achieve this. There are many ways of addressing interests. This literal meaning is misleading because of the word ‘court’. Development of Lok Adalats The concept of the Lok Adalat was developed to revive and institutionalise the mediation process. Mediation addresses the interests and not the positions taken by the disputing parties. Once they are reasonable in negotiating. Incidentally. the advantages of mediation as a method of dispute resolution have been seriously considered. both at the Centre and in the states to improve production and productivity. Regulatory Mechanisms in Industrial Relations Advantages of Mediation In view of the limitations of the adversary method of dispute resolution in areas where human emotions are also involved. institutions like Lok-Adalats are likely to be more popular for speedy settlement / prevention of Industrial disputes. 1987 has institutionalised the organising of Lok Adalats. Lok Adalat involves assembling of persons having disputes in the presence of experienced conciliators and the conciliators persuading the disputing parties to find amicable settlements for their disputes. Here mediation and conciliation are used to mean the same. Court exercises the sovereign power of the State.extra hours but also contributed to the National Defence Fund. all the minor differences which culminated in the dispute are also addressed. Disputing parties negotiate in person or through their Advocates. a mediator must to be a good counselor who can comprehend the emotional issues associated with the problem. this Act came into effect only from 1996. as there is not much difference between the two. In the process of helping the parties give vent to their emotions. Functionally. The conciliators using their experience assist parties in the negotiation process and help them find amicable solutions to their problems. Unlike a court which gives a judgment with respect to the particular claim or charge before it. Lok Adalat means mass mediation of disputes. It is easy to address the interests and once that is done. 19. the disputing parties are able to negotiate in a reasonable way. assisting in identifying interests and generating options for settlement. mediators assist the disputants to explore their differences and to develop a mutually acceptable formula for future co-existence. Lok Adalats used to be organised by the Committee for 1 1 .

When there is conciliation facility available under the I. The Legal Services Authorities Act also has provisions as mentioned earlier to see that the mediators behave responsibly. equity.D. equity and justice. Such compromise judgments became enforceable by the Court/Tribunal. parties can be compelled to go to the Lok Adalat or for conciliation. 1947 The Lok Adalat process is similar to conciliation in the Industrial Disputes Act. To confer legal sanctity on them these settlements would be sent back to the Court/Tribunal from where they were referred to the Lok Adalat. the parties cannot be coerced to go for mediation generally. So the settlement of a Lok Adalat is guarded against exploitation. When the conciliator collects the information or facilitates the parties to collect information from each other the information is furnished under oath. some State Governments have made amendments to allow termination disputes to go for adjudication before labour court directly.Employer-Employee Relations Implementing Legal Aid Schemes (CILAS). If false information is given it will attract the consequences of giving false information. Lok Adalat is more than simple mediation process. Though there is voluntariness in settling the disputes in Lok Adalats. Lok Adalats and the Industrial Disputes Act. The settlements reached in Lok Adalat must fulfil the requirements of a contract. 1947 (I. inspite of conciliation being available under the I. Lok Adalats as a Body to Conduct Mediation What happens in Lok Adalats is essentially mediation. they can walk out of the mediation. However. In India after the 2002 amendment to the Civil Procedure Code. Act why are we talking about Lok Adalats for resolution of industrial disputes which is again conciliation. The Court/Tribunal would convert the settlement reached in a Lok Adalat to a compromise judgment. Conciliation is compulsory under the Industrial Disputes Act. When a 1 2 . Act is because of the emotional quotient in human behaviour. The compromise judgment being an amicable settlement. The mediators encourage the disputing parties to compromise their demands and reach an amicable settlement. to some extent. In the mediation if the parties are not satisfied about the solutions coming forth.D. conciliation is compulsory. through this the Court/Tribunal can show in its records that the case is disposed. Mediation is voluntary. However. The conciliator in a Lok Adalat is guided by the principles of fairness. Conciliation is mediation in a formal way. Act. The Lok Adalat proceedings are to be guided by the principles of justice. The Lok Adalats are adequately empowered to collect as well as facilitate collection of complete information necessary for helping the resolution of the dispute.D. Also. Only when conciliation fails. There are adequate provisions to make all players behave responsibly in the Lok Adalat proceedings.D. it is not compulsory that parties must settle their disputes in Lok Adalats or through conciliation. 1947. the parties will not be able to take Lok Adalats lightly. does the Appropriate Government body refer the dispute for adjudication. The only remote possibility is challenging such settlement as a settlement obtained by fraud. In I. Such judgment being a compromise judgment there is no appeal or writ petition against them. The conciliators in Lok Adalat have been vested with powers of the Civil Court with respect to collection of all relevant information necessary to resolve the dispute. It was only as an abundant caution that they would be converted into a compromise judgment. though being a settlement there are compromises. There is lot of seriousness built into the functioning of Lok Adalats. The need for Lok Adalats in industrial disputes. fair play and other legal principles. Act). The settlements reached in the Lok Adalats organised by CILAS had no legal sanctity per se. parties to the settlement would voluntarily honour them. Hence.

Act. These 142 cases were chosen at random. Act and Lok Adalats should help in resolving most of the industrial disputes amicably. if conciliation facilities are made available. Act gives much wider powers to the Labour Court and Industrial Tribunal to follow such procedures as the authority thinks fit.D. 25 per cent of the total cases. the State Government refers the dispute for compulsory adjudication. Then there is delay in the Labour Court/Tribunal. A study was conducted on the working of labour courts in Bangalore reveals how parties to a termination dispute can compromise when the dispute is pending before the labour court. In Workmen of Government Silk Weaving Factory.D. These 25 per cent settlements were reached entirely at the parties or their lawyers initiative. 36 cases. emotions run very high.D.dispute arises. Act considers failure to implement an award. If the presiding officers of the labour court play a pro-active role. were settled outside the Court and settlements were converted into compromise awards. At this stage. The same principle is used by the Labour Court and Industrial Tribunals to convert an out-of. Lok Adalats are now catching on. Section 11 of the J. In this kind of mental framework. In some cases compromise was reached on the first day of appearance by the parties. Here the Lok Adalat can act as a ‘face saver’ for the parties to reach a compromise. This is clearly visible in termination disputes. The conciliators in the Lok Adalats are serving or retired judges. Mysore vs. the conciliation will. equity and fair play. 1947 does not contain any provision specifically authorising an industrial adjudicator to record a compromise settlement and pass an award. Out of this. if the parties go for conciliation. Through it is attempted all over India. Act. in all probability. The study sample comprised 142 that were disposed off termination cases during the period 1980-1990. be a failure. As time passes. Act provides for punishment for breach of any term of any settlement or award. While promoting a settlement a Lok Adalat is required to follow the principles of justice. an appropriate blend of I. Section 29 of the I.D. i. Rule 3 provides for converting out-of-court settlement into compromise judgment decree. Hence if an industrial dispute is settled in a Lok Adalat it can be straightaway converted into an award. Industrial Tribunal (1973) 2 LLJ 144 S. Section 33C of the I. Regulatory Mechanisms in Industrial Relations 1 3 . This takes some time. The Schedule on Unfair Labour Practices to the I. This gives more time for introspection. the chances of reaching an amicable settlement are greater. The I.D. which is punishable under Section 25 U of the I.D. the rate of out-of-court settlements is likely to be higher. the Supreme Court upheld the validity of the Industrial Tribunal passing an award on the basis of a compromise settlement. the emotion level is likely to come down and reason prevails. The validation of the same conclusion and converting it into an award requires the presiding officer of the Tribunal to show that there has been some application of mind in the process. The Civil Procedure Code Order 23. but it is very popular in Punjab and Haryana where thousands of cases are settled through Lok Adalats.C. Hence. giving the parties an opportunity to introspect. When the emotions are high. The study reveals that these compromises were reached at different stages of the proceedings in different cases. Lok Adalat Settlements are out of Tribunal Settlements.e.D. After failure of conciliation. the parties badly need this ‘face saving’ because they have refused to compromise in the conciliation process held under the I.. settlement or agreement as an unfair labour practice. In situations where the termination disputes go before Labour Courts/Tribunals directly. Often. Act is a very powerful mechanism for enforcement of awards/ settlements.Tribunal settlement into an award. the parties must have some encouragement to settle the dispute outside the Tribunal. reasoning is at its lowest level. Act. while in some compromise was reached at the stage of arguments.D. It may be noted here that the Presiding Officers did not play any role in promoting these settlements.

Labour Gazette.D. 19. we have observed the statutory and voluntary machineries in setting standards to protect and further the working and employment conditions of workers. Act. Excel Books. New Delhi. (2004). Industrial Disputes Act.6 SUMMARY To sum up.D. 19.Employer-Employee Relations 19. regulate industrial relations and provide for a measure of social security.8 FURTHER READINGS Singh. 1947 in statutory mechanisms in industrial relations? Write short notes on: a) Litigation b) Mediation 3) 4) What are the voluntary machineries available for settling industrial dispsutes? Write a brief note on Lok adalats and its functions.7 1) 2) SELF-ASSESSMENT QUESTIONS What is the role of I. Indian Labour Journals. 1 4 . We have also briefly made an overview on latest developments of mediating mechanisms like Lok Adalats. B. Industrial Relations: Emerging Paradigms. 1947.

5 20.6 20. you should be able to: l Dealing with Unions and Associations understand the background and forces responsible for birth of Trade Union Associations. and understand the shifts that are required to make Trade Unions/Associations responsive ones.1 20.17 20.10 20. 1926 Recognition of Trade Union Rights of Recognised Unions Problems Confronting Unions and Measures to Strengthen Trade Union Movement in India White-Collar and Managerial Trade Unions Why White-Collar Workers’ Unions? Employers’ Association Summary Self-Assessment Questions Further Readings 20.15 20.19 20.1 INTRODUCTION Trade Unionism grew as one of the most powerful socio-economic political institutions of our time . discuss the challenges before Trade Unions/Associations in changing business environment. discuss various conceptual and theoretical aspects of Trade Unions/Associations.18 20.7 20.2 20.4 20..11 20. It came as a contervailling force to reconcile social and economic aberrations created by Industrial Revolution.13 20.12 20.3 20.9 20. discuss the strength and weakness of Trade Unions/Associations.to fill in the vaccum created by industrial revolution in industrial society.20 Introduction Formative Stages of Trade Unions Definition of Trade Unions Forms of Trade Unions Functions of Trade Unions Objective of Trade Unions Role of Trade Unions Classification of Trade Unions Theories of Trade Unionism Growth of Trade Union Movement and Membership In India Trade Union Act.UNIT 20 DEALING WITH UNIONS AND ASSOCIATIONS Objectives After completion of the unit. l l l l Structure 20.16 20. Individual dispensibility and collective 1 5 .8 20.14 20.

Members can share their feelings. recreational. It is not a temporary or casual combination of workers. which were exploitative. the term is defined as “any combination.Employer-Employee Relations indespensibility was the basic principle for its formation. 20. arbitrary and illegal actions of employers. respect for individual) benefits to members. The employers wanted to crush them with iron hands. Then came the period of agitation and occasional acceptance. The government policy of “Laissez-faire” left the working class at the mercy of mighty employers.” 20. whether temporary or permanent. Then came the period of understanding and industry in collective bargaining. This was followed by fraternal stage where union became matured and employers started consulting them. Liberal democratic and revolutionary ideas (set in motion by American war of Independence. United we stand and divided we fall is the philosophy. French Revolution and Thinkers like Rousseau & Marks etc. Discontent was brewing. The exploitation of labour was at its peak. formed primarily for the purpose of regulating the relations between workers and employers. medical. It is formed for securing certain economic (like better wages. Let us examine the definition in parts. exchange notes and fight the employer quite effectively whenever he goes off the track. Under the Trade Union Act of 1926. Employers employed them at their terms. The worker lacked bargaining power and seller of most perishable commodity (labour) he was no match for the mighty employer. It is a relatively permanent formation of workers. 1860 and general law of the land. When the union gained strength they started confronting with the employer.2 FORMATIVE STAGES OF TRADE UNION Trade Union has to pass through a very difficult and hostile period in the initial years.) of the time fanned the discontentment which was a smoldering since long and gave birth to an institution known as “trade union. or for imposing restrictive conditions on the condition of any trade or business and includes any federation of two or more unions”. This is period of struggle which continued for long.3 DEFINITION OF TRADE UNION According to Webbs. Combination of workers was considered as ‘criminal conspiracy’ and the terms of contract was regulated by workman Breach of Contract Act. 1 6 . The desired state is the “Fusion Stage” in which joint efforts were required to be made for union management co-operation and partnership. better working and living conditions). l Trade union is an association either of employees or employers or of independent workers. tolerate and hesitatingly accept them. The supply of labour was more and demand was less. 1993). Collective strength offers a sort of insurance cover to members to fight against irrational. Employers were forced to accommodate. a trade union is a continuous association of wage earners for the purpose of maintaining and improving the conditions of their working lives. l l A more recent and non-legislative definition of a union is “an organisation of workers acting collectively who seek to protect and promote their mutual interests through collective bargaining” (De Cenzo & Robbins. social (such as educational.

providing more benefits. lighting and ventilation. In the case of unorganised sector the trade union plays a crucial role in bargaining the pay scales. helping the political party in enrolling members. social security benefits and other welfare measures. differences may arise in the process of their implementation.e. this item may be related to policy matters. Social functions: These functions include carrying out social service activities discharging social responsibilities through various sections of the society like educating the customers. provision of social and religious benefits. collecting donations. etc. aspirations and wishes of the working class. job security. rest rooms. dismissals. minimum working hours.6 a) OBJECTIVES OF TRADE UNIONS Unions concentrate their attention to achieve the following objectives: Wages and Salaries: The subject which drew the major attention of the trade unions is wages and salaries. holidays with pay. Discipline: Trade unions not only conduct negotiations in respect of the items with which their working conditions may be improved but also protect the workers from the clutches of management whenever workers become the victims of management’s unilateral acts and disciplinary policies. In such a situation the seperated worker who is left in a helpless condition may approach the trade union. etc.4 1) FORMS OF TRADE UNIONS Dealing with Unions and Associations There are three forms of trade unions: Classical: A trade union’s main objective is to collectively protect the interests of its members in given socio-economic-political system. job satisfaction. recreation. recreational and housing facilities. seeking the help of political parties during the periods of strikes and lockouts. gheraos. Establishing the rule of working class even through violence and use of force etc.20. safety equipment while discharging hazardous duties. sanitation. This victimisation may take the form of penal transfers. suspensions. provision of education. leave and rest. extension of medical facilities during slackness and causalities. refreshment. i. drinking. Neo-classical: It goes beyond classical objectives and tries to improve up other wider issues like tax-reliefs. Political functions: These functions include affiliating the union with a political party. Fraternal or extramural functions: These functions include providing financial and non-financial assistance to workers during the periods of strikes and lock outs. Ultimately the problem may be brought to the notice of management by b) c) 1 7 .. hike in wages.. raising saving rates etc. etc. Of course. b) c) d) 20. Working Conditions: Trade unions with a view to safeguard the health of workers demands the management to provide all the basic facilities such as. etc. However. Revolutionary: Change in the system. through collective bargaining and direct action such as strikes.5 a) FUNCTIONS OF TRADE UNIONS Functions of trade unions are: Militant or protective or intra-mutual functions: These functions include protecting the workers’ interests. Trade Unions are the expressions of the needs. 2) 3) 20.

discipline and improve quality of work life. Thus. the bureaucratic attitude and unilateral thinking of management may lead to conflicts in the organisation which ultimately disrupt the relations between the workers and management. through collective bargaining meetings. white Collar Union etc. selection. Leftist unions want to change the fundamental structure of economy and want to have control over it. trade unions help in reducing the rate of absenteeism. without any consideration for the health of the economy. negotiations are based on ‘give and take’ principle. some half-hearted attempts are being made in India also. Federations of unions. Class Bargainer: Unions representing the interest of the class as whole as in France Agricultural Unions.Employer-Employee Relations d) e) f) g) h) the trade union and it explains about the injustice met out to an individual worker and fights the management for justice. they encourage high wages. etc. may carry out continuous negotiations with the management with a view to promote industrial peace. the difficulties of workers in respect of sanitation. Agents of State: As in U. Civil Servants Union. In 1974 Railway strike. Partners in Social Control: Co-determinator in Germany. Trade unions can thus contribute to the improvements in level of production and productivity.. Italy and Sweden. the victimised worker may be protected by the trade union. some examples are found in Holland.7 a) b) c) d) ROLE OF TRADE UNIONS Adopting the model of Prof. quarters. driven by political ideologies than business compulsions. Welfare: As stated earlier. schools and colleges for their children’s cultural and social problems. being the representative of all the workers. Crafts Unions. Trade union being a party for negotiations. France. Thus. Trade union. Trade union works as a guide. Therefore. Also. It may bring to the notice of management. high bonus etc. Safeguarding organisational health and the interest of the industry: Organisational health can be diagnosed by methods evolved for grievance redressal and techniques adopted to reduce the rate of absenteeism and labour turnover and to improve the employee relations. consulting authority and cooperates in overcoming the personnel problems of workers. e) 1 8 . Unions role which can be termed as enemies of economic systems. national level multiplicity of unions. Thus. 20. transfers. protects the interests of workers through collective bargaining. Trade unions by their effective working may achieve employee satisfaction. industry. Personnel Policies: Trade unions may fight against improper implementation of personnel policies in respect of recruitment. the trade union works as the negotiating machinery.S. Employee-employer relation: Harmonious relations between the employees and employer is a sine quo non for industrial peace.S. INTUC stood behind Government and its agent. training. A trade union always strives for achieving this objective. However. Clark Kerr unions assume the following roles: Sectional Bargainer: Interests of the workers at plant. hospitals. labour turnover and developing systematic grievance settlement procedures leading to harmonious industrial relations.R. ensuring targets of production at fixed price. promotions. This process continues until the parties reach an agreement. trade unions are meant for the welfare of workers. Negotiating machinery: Negotiations include the proposals made by one party and the counter proposals of the other party. Thus.

b) c) Classification based on trade a) Many unions have memberships and jurisdictions based on the trades they represent. Although very common in the western world. trade unions may be categorised on the basis of the industry in which they are employed. elimination of poverty etc. In the USA where some states are declared to be ‘right-to-work’. Examples of these are workers engaged in agriculture of forestry: hence agricultural labour unions or forest worker unions. those employees in shops and offices and who are not in management grades and perform clerical and allied functions are called white-collar workers. or outdoor trades such as in construction work. the closed shop is also called the ‘Hiring Hall. Dealing with Unions and Associations g) 20. These are: a) Closed Shop: Where management and union agree that the union would have sole responsibility and authority for the recruitment of workers. although they still exist in the construction and printing trades. The Taft-Hartley Act of 1947 bans closed shop agreements in the USA. They want shift in power and authority and use of force . based on the degree to which membership in the union is a condition of employment.European Model. trade and agreement. Another common delineation of unions based on trades or crafts is that between socalled blue-collar workers and white-collar workers. In addition..Left Unions. Uplift Unions: Advocate extensive reforms well beyond the area of working condition i. Unions representing workers employed on the production floor. and clerical work. which represents only members certified in a given craft or trade. b) 1 9 .e. it is called a Closed Shop agreement. are called blue-collar unions. At the other extreme in terms of the range of workers represented in the general union. which has members drawn from all trades.’ Union Shop: Where there is an agreement that all new recruits must join the union within a fixed period after employment it is called a union shop. Unions as Change Agent: Lead the changes than to be led by them and thus. Sometimes. The most narrow in membership is the craft union. craft unions are not common in countries like India and Sri Lanka. Reformist or Welfare Unions: Work for changes and reforms within existing socio-political framework of society . Most unions in India and Sri Lanka are in this category. performing the pioneering role. The worker joins the union to become an employee of the shop. carpentry. They think that their members fate is inextricably linked with that of organisation and they swim or sink together. Classification based on ideology a) Revolutionary Unions: Believe in destruction of existing social/economic order and creation of a new one. change in taxation system.8 CLASSIFICATION OF TRADE UNIONS Classification of trade unions is based upon ideology.f) Business Oriented Role: Here unions consider the interests of the organisation along with workers. b) c) d) Classification based on agreement Another basis on which labour agreements are sometimes distinguished is on basis of the type of agreement involved. such as pipe fitting. In contrast.

Important theories of trade unionism are as follows. However. 20. completely rejected individual bargaining. e) f) The above classifications are more usual in the west than on the Indian sub-continent. Cole’s Theory of Union Control of Industry: Cole’s views are given in his book “World of Labour” 1913. sometimes there is no union at all. According to him unions afford economic protection to. academics like Common and Hoxie and labour leader like Mitchall. anti-Democratic Trade Unionism: He denounced trade unionism as monopoly founded on violence. and the ultimate purpose is to overthrow capitalist businessman. Webbs Theory of Industrial Democracy: Webb’s book ‘Industrial democracy’ is the Bible of trade unionism. Common’s Environment Theory: He was skeptical of generalisations and believed only that which could be proved by evidence. He considered collective bargaining as the process which strengthens labour. b) c) d) e) f) g) 2 0 . According to Webb. Its short run purpose is to eliminate competition among labour. his membership remains compulsory right throughout his tenure of employment with that particular employer. Agency Shop: In terms of the agreement between management and the union a non union member has to pay the union a sum equivalent to a member’s subscription in order to continue employment with the employer. Maintenance Shop: In this type of arrangement no compulsory membership in the union before or after recruitment exists. but many contributors to these theories are revolutionaries like Marx and Engels. Open Shop: Membership in a union is in no way compulsory or obligatory either before or after recruitment. Perlman’s Theory of the “Scarcity Consciousness” of Manual Workers: He rejected the idea of class consciousness as an explanation for the origin of the trade union movement but substituted it with what he called job consciousness. His views are somewhere in between Webb and Marx. This is called an agency shop. He agreed that collective bargaining was an instrument of class struggle.9 THEORIES OF TRADE UNIONISM There is no one theory of Trade Unionism. a) Political Revolutionary Theory of Labour Movement of Marx and Engels: This theory is based on Adam Smiths theory of labour value. Mitchell’s Economic Protection Theory of Trade Unionism: Mitchell.Employer-Employee Relations c) d) Preferential Shop: When a Union member is given preference in filling a vacancy. a labour leader. and proletarians have nothing to lose but their chains and they a world to win. but he summarised that ultimately there will be partnership between employers and employees. such an agreement is called Preferential Shop. This is referred to as an open shop. Simons Theory of Monopolistic. Civil servants like Sydney Webb. if the employee chooses to become a member after recruitment. In such organisations. Trade union is pure simple a class struggle. He agrees that unionism is class struggle and the ultimate is the control of industry by labour and not revolution as predicted by Marx. This is called a maintenance of membership shop or maintenance shop. This is least desirable form for unions. And he claimed monopoly power has no use save abuse. Webb agreed with Marx that trade unionism is a class struggle and modern capitalist state is a transitional phase which will lead to democratic socialism. trade unionism is an extension of democracy from political sphere to industrial sphere.

“Predatory Unionism” which rests on these support of others. 1881. the source of the anti-capitalist influences being primarily from among the intellectuals in any society.g.. the trade union movement is an unconscious effort to harness the drift of our time and reorganise it around the cohesive identity that men working together always achieve. In his words. “Uplift unionism” for the purpose of contributing better life such as association of sales engineers etc. but struggles also. through their common fundamental psychology. The first Factories Act.According to him. but hardly towards similar control of industry. the psychology of seeking a livelihood in the face of limited economic opportunity. The union gives the worker a fellowship and a value system that he shares with others like him. the most vital factor in the labour situation was the trade union movement. ‘working people in reality felt an urge towards collective control of their employment opportunities. h) Hoxies Functional Classification of Unionism: He classified Unionism on the basis of their functions.’ Perlman observed that three dominant factors emerged from the rich historical data: i) ii) iii) the capacity or incapacity of the capitalist system to survive as a ruling group in the face of revolutionary attacks (e. as in most other countries. Early Period Efforts towards organising the workers for their welfare were made. Machine: According to him Union is formed in reaction to alienation and loss of community in an individualistic and unfeeling society. which he left behind him when he migrated from a rural background to the anonymity of an urban industrial location. there was a historical continuity between the guilds and trade unions. whether consciously or unconsciously. failure in Russia). security and liberty in the shop and industry. For instance. Trade unionism. was passed on the basis of the recommendations of the Bombay Factory Commission. Due to 2 1 .10 GROWTH OF TRADE UNION MOVEMENT AND MEMBERSHIP IN INDIA Trade unions in India. 1970). It was when manual workers became aware of a scarcity of opportunity. that they banded together into unions for the purpose of protecting their jobs and distributing employment opportunities among themselves equitably. against the intellectual who would frame its programmes and shape its policies. philanthropists and other religious leaders mostly on humanitarian grounds. struggles constantly not only against the employers for an enlarged opportunity measure in income. the union returns to the workers his society. Institutionally. His classification were Business Unionism for protecting the interest of various craftmen. have been the natural outcome the modem factory system. which is essentially pragmatic. actively or passively. Dealing with Unions and Associations But Perlman also felt that a theory of the labour movement should include a theory of the psychology of the labouring man. i) 20. “Revolutionary Unionism” which is eager to replace existing social order. Unionism was ruled thus by this fundamental scarcity consciousness (Perlman. Tannenbaum’s Theory of Man Vs. and to subordinate the interests of the individual to the whole labour organism. during the early period of industrial development by social workers. The development of trade unionism in India has chequered history and a stormy career. 1875.

These efforts did bear fruit and All India Red Trade Union Congress was dissolved. All India Trade Union Federation also merged with AITUC. These unions were later federated into an industrial union known as Ahmedabad Textile Labour Association. political and social conditions of the day influenced the growth of trade union movement in India. Signs of militant tendency and revolutionary ideas were apparent during this period. Indian National Trade Union Congress: The efforts of Indian National Congress resulted in the establishment of Indian National Trade Union Congress (INTUC) by bringing the split in the AITUC. The formation of AlTUC led to the establishment of All India Railwaymen’s Federation (AIRF) IN 1922. INTUC started gaining membership right from the beginning. came into existence in Ahmedabad under the inspiration of Mahatma Gandhi. Added to this. Consequently. This is the first all India trade union in the country.Employer-Employee Relations the limitations of the Act. A further split took place in 1947. However. Bombay Mill owners’ Association conceded the demand for weekly holiday. All India Trade Union Congress The most important year in the history of Indian Trade Union movement is 1920 when the All India Trade Union Congress (AITUC) was formed consequent upon the necessity of electing delegates for the International Labour Organisation (ILO). The World Was II brought splits in the AITUC. mid-day recess and compensation for injuries. b) 2 2 . Thus. the supporting group established its own central organisation called the Indian Federation of Labour. Some of the important unions established during the period are: Amalgamated Society of Railway Servants of India and Burma (1897). Establishment of International Labour Organisation in 1919 helped the formation of trade unions in the country. Many Company Railway Unions were affiliated to it. The first meeting of the AlTUC was held in October. Calcutta (1905) and the Bombay Postal Union (1907). Lokhande established the first Workers’ Union in India in 1890 in the name of Bombay Mill hands Association. But the unity did not last long. A labour journal called “Dinabandu” was also published. Another split by the communists in 1931 led to the formation of All India Red Trade Union Congress. weekly rest days. The unified AITUC’s convention was held in 1940 in Nagpur. the workers in Bombay Textile Industry under the leadership of N M Lokhande demanded reduced of hours of work. 1920 at Bombay (now Mumbai) under the presidentship of Lala Lajpat Rai. the Kamgar Hitavardhak Sabha (1910) and the Social Service League (1910). splits were more common during the period. Madras Labour Union was formed on systematic lines in 1919. Economic. collaboration and non-violence. when the top leaders of the Indian National Congress formed another central organisation. There were two groups in the AITUC. efforts were made by the Railway Federation to bring unity within the AITUC unity. like Spinners’ Union and Weavers’ Union. one supporting the war while the other opposing it. This union has been formed on systematic lines and has been functioning on sound lines based on the Gandhian Philosophy of mutual trust. Management the Printers Union. But these unions were treated as ad hoc bodies and could not serve the purpose of trade unions. Categorywise unions. A number of trade unions were established between 1919 and 1923. a) Period of splits and mergers: The splinter group of AITUC formed All India Trade Union Federation (AlTUF) in 1929. Modest Beginning The beginning of the Labour movement in the modest sense started after the outbreak of World War I in the country.

the union membership per union has not kept pace.4 Lakhs 20. 1926 The Trade Union Act. splinter group of INTUC formed Union Trade Union Congress. Thus. Thus. 1997). traders. Present Position There are over 9. 1926.000 trade unions in the country. There is a high degree of unionisation (varying from 30% to over 70%) in coal.12. cotton. iron and steel. (1) BMS (2) INTUC (3) HMS. It allows trade union to get registered under the act. USA). textiles.9.89. self employed professions like doctors.11 TRADE UNION ACT. the split in the Congress Party in 1969 resulted in the split in INTUC and let to the formation of National Labour Organisation (NLO). Unions with a membership of over 2000 constitute roughly 4 per cent of the total unions in the country. insurance. The criteria for recognition as Central Trade Union has been that the combined strength should be 5 lacs numbers with a spread over to at least 4 states and 4 industries as on 31. (4) U. including unregistered unions and more than 70 federations and confederations registered under the Trade Unions Act. Registration provides legal status to the trade union and it becomes body corporate.T. White-collar unions have also increased significantly covering officers.97) the five leading Trade Unions’ strength are as follows: Box 1 Trade Union Strength Trade Union BMS INTUC AITUC HMS CITU Strength 331 Lakhs 271 Lakhs 18 Lakhs 15 Lakhs 3. ports and docks and tobacco sector. The Indian Federation of Labour merged with the HMS.U.LS (5) AITUC (6) CITUC (7) NLO (8) UTUC (9) TUCC (10) NFITU. There are as many as 10 central trade union organisations in the country (as against one or two in UK. banking. More than 70% of the unions had a membership of below 500. Over the years the average membership figures per union have faIlen steadily from about 1387 in 1943 to 632 in 1992-93 (Pocket Book of Labour Statistics. The degree of unionism is fairly high in organised industrial sector.C . lawyers. Japan.c) Other Central Unions: Socialists separated from AITUC had formed Hind Mazdoor Sabha (HMS) in 1948. As per one survey (Economic Times. Ten such Trade Unions are. cement. senior executives. 1926 legalises the formation of trade unions by allowing employee to form trade union. railways. It is negligible in the agricultural and unorganised sectors. etc. The National commission on labour has stated that only 131 unions had a membership of over 5. Radicals formed another union under the name of United Trade Union Congress in 1949. the Hind Mazdoor Panchayat (HMP) in 1965 and the Centre of Indian Trade Unions (CITU) in 1970. civil servants. 24. Dealing with Unions and Associations Some other central unions were also formed. They were Bharatiya Mazdoor Sangh (BMS) in 1955. It 2 3 . managers. for safeguarding their interest. Though the number of unions has greatly increased in the last four decades.000. the trade union movement in the country was split into four distinct central unions during the short span of 1946 to 1949.

collects particulars of all unions in a plant. either by the response at gate meetings. unions and the government. After cross checking of records. Sometimes. It also depends on all unions accepting the method and cooperating in its implementation. Andhra Pradesh and Orrisa etc. 20. This process is carried out by the labour directorate. The Trade Union Act. But the system is also prone to manipulation. Rule of Thumb or intelligent guessing by management or general observation to assess union strength. in a manner very similar to the conduct of general elections. 1978 and 1988. 1950. Check-Off method: Under which each individual worker authorises management in writing to deduct union fees from his wages and credit it to the chosen union. unions also with lists of members in order to avoid dual membership. strikes or discussions with employees. 1960 and other states like Gujarat. the only Central Law. The claim lists of the unions. which have gone for such legislations.12 RECOGNITION OF TRADE UNION The underline idea of former trade union is to negotiate and bargain with employers to improve the service and employment conditions of workers on their behalf. physical sampling of workers. Once held. This is not a reliable method.Employer-Employee Relations can hold moveable and immoveable property and can enter into contract and can sue and can be sued. 2) 3) 4) 2 4 . all eligible workers of an establishment may vote for their chosen union. particularly in large estalishments and can also be subject to change at short intervals. state legislations like Maharashtra Recognition of Trade Union and Prevention of Unfair Labour Practices Act 1971. however. membership records and account books are scrutinised for duplicate membership. Verifiction of union membership method by the labour directorate as adopted as a resolution in the same session of the ILC and used widely in many establishments. but it could not be materialised. genuine mistakes may occur. with regard to their registration and membership. which on the invitation of unions and management of an organisation or industry. of late. This collective bargaining process can be possible only when employer recognises a trade union as bargaining agent and agree to negotiate with it because it is difficult to negotiate with multiple trade unions in a single organisation. For details refer the Act. particularly when the number of employees is large. a final verified list is prepared for employers. There are. This gives management concrete evidene about the respective strengths of the unions. The usual methods used to determine union strength. 1926. their fees books. particularly collision between management and a favoured union. which is the basis of the recognitions are following: 1) Election by Secret Ballot: Under which system. Some attempts were made to include compulsory recognition in the Trade Union Act in 1947. Union can generate General fund for day-to-day activities and Political fund for political activities. Under a later amendment. the results of the elections would remain valid for a minimum period. particularly in cases of doubt or duplication. elections to be conducted by a neutral agent. generally the Registrar of Unions. The act also provides immunities to the unions from civil and criminal prosecution for bonafidy trade union activities. Madhya Pradesh Industrial Relations Act. usually two years. which regulates the working of the unions does not have any provision for recognition of trade union.

ability to demand check-off facility. Check-off system has the advantage of ascertaining the relative strength of trade unions. which are as follows: the right to raise issues with the management. then unions that have the support of more than 25% should be given proportionate representation on the negotiating college. right to collect membership fees within the premises of the organisation. Sooner a central legislation is passed and industry and business houses start dealing with recognised unions. did not go for recognising a representative union. Therefore recognition of a trade union as negotiating agent is a business necessity. should be valid for a period of four years.Of the above methods the first one is universally accepted method used all over the world but there has been no consensus amount among the trade unions on that in India. to be coterminous with the period of settlement. Secret ballot is logically and financially a difficult process in certain industries. ability to hold discussions with employees at a suitable place within the premises right to discuss members’ grievances with employer. In the process. 20. 1926. ability to inspect before hand a place of employment or work of its members. the interests of workers and their aspirations have been totally neglected. political leaders. better it will be. and nomination of its representatives on committees formed by the management for industrial relations purposes as well as in statutory bipartite committees. The new corporate ‘mantras’ 2 5 . The union finances have not been very sound in the beginning. ability to put up a notice board on the premises for union announcements. The Second National Commission of Labour (2003) considered the issues seriously and made the following recommendations: 1) We recommend that the negotiating agent should be selected for recognition on the basis of the check off system.14 PROBLEMS CONFRONTING UNIONS AND MEASURES TO STRENGTHEN TRADE UNION MOVEMENT IN INDIA Over the years. and if no union has 66% support. It provides strength. A union with 66% membership be entitled to be accepted as the single negotiating agent. As a result multiple unions have cropped up. trade unions in India have been taken for a ride by outside. provides opportunity for a matured employer union relationship. Multiplicity of trade unions create problems for both the employer and the trade unions.13 a) b) c) d) e) f) g) h) RIGHTS OF RECOGNISED UNIONS Recognised unions have certain rights. Recognition once granted. it provides opportunity for understanding and mutual appreciation and thus. The average membership figures for each union remain poor and have not improved. Check-off system should be made compulsory for all establishments employing 300 or more workers. often with blessings from management and outsiders. Such a device is beneficial for both the employer and the trade unions. For establishments employing less than 300 workers also the check-off system would be the preferred mode. The forces of liberalisation unleashed in early 90s have strengthened the hands of employers in closing down unviable units. The Trade Unions Act. Dealing with Unions and Associations 2) 20.

low level of knowledge about labour legislation. The leadership of most of the trade unions in India has been outside leadership mainly drawn from political parties. survival of the fittest have virtually pushed them to the wall-where their very survival looks uncertain. Person-cum-factional politics of the local union leader. Reasons for emergence of outside leadership: Outside leadership has been playing a pivotal role in Indian Trade Union Movement due to the inability of insiders to lead their movement. In view of low education standards and poor command over English language which is still the principal language of labour legislation and negotiations. fear of victimisation by the employer and lack of leadership qualities-outside leaders have come to stay. also stated that outsiders in the Trade Unions should be made redundant by forces from within rather than by legal means. unsound financial position. itself provided the scope for outside leadership. Internal leadership has not been developed fully. Special leave should be sanctioned to the office bearers. Political differences of leaders have been inhibiting the formation of one union in one industry. 1926. recommended for the reduction of the statutory limit of outsiders from 1/2 to 1/3 but no efforts were taken in this direction. it is desirable to replace the outside leaders progressively by the internal leaders. Extensive training facilities in the areas of leadership skills. The evil effects of outside leadership: The evil effects of outside leadership analysed by National Commission on Labour are as follows: 1) 2) 3) 4) Outside leadership undermined the purposes of Trade Unions and weakened their authority. management techniques and programmes should be provided to the workers. Most of the Trade Union leaders fulfil their personal aspirations with their knowledge and experience gained in the Trade Unions. Measures to minimise the evil effects of outside leadership: In view of the limitations of outside leadership. Outside leadership has been responsible for the slow growth of Trade Unions. efficiency. performance. The main reason for this trend is that the Trade Unions Act. this provision provides the scope for outsiders to the tune of 50% of the office bearers. Let’s recount the factors responsible for their ever-increasing woes and depreciated status thus as below: a) Trade Union leadership: The nature of leadership significantly influences the union-management relations as the leadership is the lynch-pin of the management of trade unions. Section 22 of the Act requires that ordinarily not less than half of the officers of the reregistered union shall be actively engaged or employed in an industry to which the union relates. Both the management and trade unions should take steps in this direction. 1969. l l Union rivalry has been the result of the following factors: 2 6 1) 2) . Personal benefits and prejudices sometimes weighed more than unions. The Royal Commission of Labour (RCI) 1931. The desire of political parties to have their basis among the industrial workers. Even though outside leadership is permissible in the initial stages it is undesirable in the long run because of many evils associated with it. The steps may be: l Management should assure that the victimisation will be at zero level. even if the trade unions are led by insiders. Thus. Most of the leaders cannot understand the worker’ problems as they do not live the life of a worker. The National Commission on Labour.Employer-Employee Relations productivity.

e. Multiple unionism affects the industrial relations system both positively and negatively. The situation of multiple unions is said to prevail when two or more unions in the same plant or industry try to assert rival claims over each other and function with overlapping jurisdiction. The relevant article reads as follows: “Any seven or more members of a trade union may be subscribing their name to the roles of the trade union and by otherwise complying with the provisions of this act with respect to the registration. It encourages a healthy competition and acts as a check to the adoption of undemocratic practice. 1926. But the inter-union rivalry breaks the very purpose of the trade unions by weakening the strength of collective bargaining. the existence of a single. Multiple unionism also results in small size of the unions. authoritative structure and autocratic leadership. b) c) 2 7 . These rivalries are responsible for slow growth of trade union movement in the country. Further. Attitude and policies of the management.” This provision has led to the formation of multiple unions and resulted in interunion rivalry in different industries. it helps to bring about congenial industrial relations by bringing about a system of orderliness in dealing with the employees and by facilitating expeditious settlement of disputes. apply for registration of the trade union under this Act. Promotion of collective bargaining through recognition of sole bargaining agents. On the other hand.3) 4) 5) Domination of unions by outside leaders. formations of two or more unions in the industry. the negative impacts of multiple unions dominate the positive impacts. The multiple unions exist due to the existence of craft unions. Multiple unions: Multiple unionism both at the plant and industry levels pose a serious threat to industrial peace and harmony in India. and Empowering labour courts to settle inter-union disputes if they are not settled within the organisation. Dealing with Unions and Associations Measures to minimise union rivalry: In view of the evil effects of inter-union rivalry and the problem of formation of one union in one industry. It is a major cause for weakening the Trade Union Movement in India. Union Rivalry: The formal basis for Trade Union Organisation is provided by the Indian Trade Union Act. The rivalry destroys the feeling of mutual trust and cooperation among leadership. The nature of competition tends to convert itself into a sense of unfair competition resulting in inter-union rivalry. etc. It exists even in advance countries like UK and USA. divide and rule policy. and The weak legal framework of trade unions. However. They are responsible for weal bargaining power of trade unions in collective bargaining. It is sometimes desirable for the healthy and democratic health of labour movement. Multiple unionism is not a phenomenon unique to India. it may be necessary to consider the recommendations of National Commission on Labour. Inter and intra-union rivalries have been a potent cause of industrial disputes in the country.. i. Encouraging union security. The recommendations of NCL to minimise union rivalry are: l l l l l Elimination of party politics and outsiders through building up of internal leaders. strong union not only protects the employee interests more effectively but also halts the various unproductive activities of the unions and forces the leaders to concentrate on the strategic issues. Improving the system of union recognition. poor finances. 1969. The state of rivalry between two groups of the same union is said to be inter union rivalry.

etc. etc. it is difficult for them to put a joint front in case of trouble. if they paid more attention to strengthening their organisations and achieving higher attention of financial solvency. do not also participate in the union work enthusiastically. total funds collected are small.” e) Low membership: The average membership figures of each union are quite depressing.” The primary source of income to the unions is membership subscription. the rate of contributions required of members is also small. “trade unions could be more effective. trade unions have to perform a variety of functions and organise programmes which require enormous financial commitments. “Because of their small size. caste. They can’t bargain with the employer effectively on their own. As the National Commission on Labour observes. Those who become part of the union. “ an important factor limiting the effective functioning of unions in our country has been their fmancial weakness. But the National Commission on Labour recommended the increase of rate of membership subscription from 25 paise to Re. salaries to office. It is opined that. with few exceptions. poor finances are the result of inadequate membership strength. telegrams. 1926. affecting their functioning. unionism even today remains a foreign issue. under the circumstances. Lack of Interest: For a large majority of workers. workers avoid union activities out of sheer disinterestedness. In fact. In such a scenario. a steady fall from 3. Absence of paid office bearers: Weak finances do not permit unions to engage the services of full time. Their other sources of union finances are donations. Employers exploit the situation. sale of periodicals. The items of expenditure include: allowances to office bearers. The general picture of finances of unions is disappointing. This in turn. annual convention/meeting expenses. can be traced to the small size of units. because in the process of rendering services or fulfilling their goals. by dividing workers on the basis of race. Heterogeneous nature of labour: Since workers come to the factory with varying backgrounds. who work on a part time basis. This unsound financial position is mostly due to low membership and low rate of membership fee. In 1992-93 the average membership figure was 632.. postage. it is not surprising to find outside political leaders exploiting the situation serve their own personal agenda. it is imperative on the part of a trade union to strengthen its financial position. stationery. neither have the time nor the energy to take up union activities sincerely and diligently. 1 in the year 1990. Other problems: The other factors responsible for the unsound functioning of trade unions in India are: 1) Illiteracy: Workers in India fail to understand the implications of modern trade unionism.Employer-Employee Relations d) Finance: Sound financial position is an essential ingredient for the effective functioning of trade unions. With a relatively low rte of unionisation. Their illiteracy coupled with ignorance and indifference account for the predominance of outside leadership. rents. But it is felt that the income and expenditure of trade unions in India over the years is such. paid office bearers. In most unions. Hence. printing. In a majority of unions. Trade Union Act. prescribed the membership fee at 25 paise per member per month. language. unions suffer from lack of adequate funds and find it difficult to engage the services of experts to aid and advise members in times of need’. f) g) h) i) 2 8 . But the Government did not accept this recommendation. etc. Union activists. Most of the trade unions in India suffer from inadequate funds. religion. that the financial position of the union is generally weak.594 per union from 1927-28.

Protesting organisation to Partnering organisation Bureaucratic organisation to democratic and service organisation Complacency to struggle Power-hunger to service orientation. which constitute about 92% of workforce and IT sectors/BPO/Call Centres where most of the employment is coming attracting and retaining new bread of workers by monitoring them. compared to the situation in 1926 when Trade Union Act provided for the collection of 25 paise per month per member as subscription fee. insurance.A l Trade Union must broaden their base membership in unorganised sectors. 1926 should be amended and the number of members required to form a trade union should be increased from 7 to 50% of the employees of an organisation.Partners in progress. l 2 9 . Dealing with Unions and Associations The membership fees should be raised as the amount of wages of the workers increased significantly. Trade Unions have to adapt to new realities in new business environment. Some other source of finance may also explored to make trade union financially healthy. Solidarity concept is getting diluted because of diversities in work force and increasing individualization industry). Even amended Rs. The degree of unionism is quite negligible in the agricultural and unorganised sector. iron and steel. cement. the scope for the outside leadership should be reduced from 50% to about 10%.2) Uneven growth: Trade unionism activities are. Social responsibility of Trade Unions should go beyond their limited constituency within members only. l l Trade Unions should be smart. tobacco.l/. ports and docks.S. IT savvy on-line working to have connectivity to employees abroad as also International Trade Unions and other Trade bodies. sharing the gains. cotton textiles. Other Measures l Trade unions should extend welfare measures to the members and actively pursue social responsibilities. The degree of unionism also varies from industry to industry. Table 2: Declining Membership Country Membership % and year 50% in 1950 30% in 1959 Decline membership and year 25% in 1991 16% in 1989 l l Japan U. “The simple notion of solidarity is now outdated. Trade Unions must reorient themselves: – – – – – From political/ideology obsession to Business Union . Similarly. varying between to 30-70 per cent in coal. banking. railways.” (Zoll 1996). confined to major metros in India and traceable only in large scale units (especially cotton textile. etc. a narrow concept to encompass the mutual support of those whose positions and interests are different. The membership subscription should be enhanced from 25 paise to 1 % of the monthly wage of the worker. The Trade Union Act. Trade Unions should make efforts to raise their declining membership which is world over phenomenon.is not sufficient. more or less.

The differences between these two categories of unions are as summarised in the Table 3 below. and holding different positions at different levels. It gives adequate strength to the trade unions both industry and Parliament. d) e) f) The Trade Union Act should be amended in order to avoid dual membership. dilute their power and reduce their effectiveness. Splinter groups multiple unions dissipate their energies. and gheraos for securing their demand and thus creating some embarrassing problems for their employers/managements requiring serious consideration. engineers. Future needs smart and responsive Trade Unions. Highly paid employees in banks. They must focus on important issues affecting workers. officers. but are of different status. and so the Central Government and semi-government employees. Unions should not intervene in day-to-day matters. Trade unions should form a sort of labour party and all the trade unions in the country should be affiliated to it. Outside leadership is the main cause for the multiple problems of the trade unions. Trade unions exist among most professionals. lawyers.Employer-Employee Relations Measures to strengthen Trade Union Movement in India The following are some of the measures to minimise trade union problems and to strengthen the Trade Union Movement of India. in the Life Insurance Corporation and in many other establishments are organised. White-collar employees and professional people like doctors. a) United Labour Front Unions must put a joint front. There should be legal provision for the recognition of the representative union. and managers. senior executives. railways docks. b) Efficient Leadership Outside political leadership has developed due to the absence of internal leadership. Management should encourage internal workers to lead their own movement. whitecollar employees. professors and senior executives and managerial staff thought it below their dignity to band themselves in unions. if they have to survive and thrive. 20. march the high streets. etc. Today it is different. work to rule. mass casual leaves. They take recourse to strikes. c) Membership Fees In order to make members updated Trade unions must organise continuous training and developmental programmes. 3 0 . and yell slogans. Management and trade unions should provide educational and training facilities for the development of internal leadership. and so do strikes and gheraos.15 WHITE-COLLAR AND MANAGERIAL TRADE UNIONS There was a time when unions and strikes were known only to Blue-collar workers in factories. These problems can be eradicated through the development of leadership talents from within. dharnas. mines. Both blue and white-collar workers are employees.

They are non-manual workers forming a distinct social ground characterised by divergent socio-economic backgrounds. and have their own social and economic background. Source: Industrial Relations. technical. transport. such as Industrial Disputes Act. Arun Monappa. Their fringe benefits and perquisites are lower than that of white-collar 6. and may have lesser holidays. They are linked with their employers by being associated with that part of the productive process where authority is exercised and decisions are taken. or in sports and recreational facilities. executive and managerial workers. engaged in transport and Communication services. They are generally involved in a desk job or providing service over the counter. 4. the blue-collar workers are not so well paid. They are generally wage earners. 7. 1947 as may be the case with not a few of them. 8. and nor they associated with decision taking. are termed as white-collar workers as their work and working places are clean. Dealing with Unions and Associations 1. or by piece. Tata McGraw Hill. administrative. and also job security if they are not covered by the Industrial Disputes Act. and so they are more inclined towards it than the bluecollar workers. They are mostly engaged in production processes. sales staff. They enjoy longer holidays and leave facilities and better privileges. manner of speech. They hold such jobs that they are regarded as part of the management. They are better educated and have jobs requiring mental capabilities to a greater extent. Blue-Collar Worker White Collar Worker All clerical or office staff who do not work on the shop floor. New Delhi. or monthly basis. either on daily.Table 3: Differences between Blue and White Collar Workers S. or fortnightly. 5. They have no authority. They are manual workers with lower literacy and education. 1985. and supervisory and other workers. Excepting highly skilled categories who are in greater demand and can manage to have higher wages income. 3 1 . or weekly. 3. They are not so inclined towards management. They are concentrated in the fields of commerce. They are time workers paid on monthly basis. pp. or results. They are engaged in different occupations that fall under the category of professional. storage and communication. clerical and related workers. They have better union protection and job security by labour legislation. All shop-floor workers (Part of production system who operate machines and related systems) are termed as blue-collar workers. as their work is not generally clean. and leave facilities and other privileges than white-collar workers. level of education. No. social custom and ideology. 2. 1947. On the other hand. artists and musicians. including better perquisites and fringe benefit. they may be caring for their unions than for the management. They have no union protection if they are not unionised. Because of their professional and social standing they are generally better paid and have better terms and conditions of employment. They may be paid by time.33-34.

bonus and other fringe benefits. Anomalies in pay caused by implementation of the recommendations of Wage Boards and Pay Commissions. work to rule. white-collar workers unions are registered either under the Trade Unions Act. picketing and boisterous agitation and demonstration. As blue-collar workers are largely illiterate or low educated. 1947. maternity. bonus and social security against such social risks as sickness. agitation and litigation. 1926. Since the immunity from civil and criminal prosecution is provided to unions. 1926 and are generally known as workers and employees Unions. 1860 the white-collar workers organisations registered as association under the latter Act have to be selective in using pressures for getting their demand met. or employees or staff associations. and permanent or temporary disabilities caused by accidents. its members and office bearers for bona fide trade union activities under the Trade Unions Act. they are more capable in negotiating and bargaining for their demands. Their union leadership is.Employer-Employee Relations 20. and as this is not specifically provided under the Societies Registration Act. They. mostly internal or endogenous. or hunger strike. and are known as employees unions. and. and conciliation and adjudication of their disputes. negotiations with employers. employment and working conditions by bargaining collectively with their employers for better and regular payment of wages. as they require the help of the outsiders in bargaining for them collectively and representing them in conciliation. have better bargaining power and greater possibility of arriving at collective and bipartite agreements. whitecollar workers also started uniting and organising themselves and forming their unions for fighting for better pay scales. arbitration and adjudication proceedings under the Industrial Disputes Act. as they are not affiliated to central trade union organisations with different political ideologies. All India Federation of Railwaymen (AITUC). more fringe benefits. They generally take recourse to mass casual leave. and consequently from inter-union rivalries than the bluecollar unions. Financially and membership-wise white-collar unions are stronger than bluecollar unions. rather than to strike. peaceful demonstrations and dharnas. Most of the whitecollar unions are independent. White and Blue collar workers unions are mostly registered under the Trade Unions Act.16 WHY WHITE COLLAR-WORKERS’ UNIONS? Seeing how unions of blue-collar workers had improved their service. and job and social security. therefore. politicalisation and outside leadership. internal promotion by collective bargaining. White-collar unions suffer must less from multiplicity. or under the Societies Registration Act. Increasing militancy of blue-collar unions could be attributed to some extend to their poor bargaining power and frustration. These outsiders may not work always entirely in the interest of workers. 1860. therefore. old age and retirement. knowledgeable and intelligent. Nationalisation and consequent rationalisation of pay and perquisites. 1947. therefore. Members of white-collar unions are more educated. premature death. Small membership and poor finances make the latter more dependent on outside leadership and political parties for their day to day working. and National Federation of Indian Railwaymen (INTUC) 2) 3) 4) 5) 6) 7) 3 2 . and Laws relating to wages. 1) Denial of both Job Security and Social Security to them by their exclusion from the purview of labour laws like. the leadership is more external than internal. Industrial Disputes Act. Other factors responsible for the growth of white collar unionism are discussed below.

The Central orgnisations of trade unions could have provided leadership or guidance for proper organisation of such unions. or by the central bodies of trade unions. though many of their organisations are registered under the Trade Unions Act. or could not introduce some procedure for redressal of grievances of the managerial staff. 1926. 3 3 . could have attempted an in-depth study of managerial unionism and workshops. and so causing feeling of deprivation among white-collar workers. It is only the corporate managements who could not ignore this happening. 1947. some of the white-collar employees may be outside the purview of the Industrial Disputes Act. Act. It is because of unions of the Government employees and public sectors undertakings who had been excluded from the purview of the Payment of Bonus Act. 1965. wherein the officers of certain oranisations are claiming that they are not managers but workmen. 1947. 8) Lastly. 11) Inflation and soaring prices resulting in erosion of pay and standard living of whitecollar workers.are working more cohesively than as rivals. In fact they are finding it difficult to develop working relations with their managers and other officers in the absence of any corporate or national policy on this subject. Distinguishing Features of White-Collar Unions There are some noteworthy features of unions of white-collar workers which distinguish them from that of the blue-collar unions as stated briefly below: a) Managerial Association Managerial trade unionism is no longer a fiction. and they should be given protection under the provisions of the Industrial Disputes Act. they do not sacrifice the interests of their members for some political gains. The purpose of managerial unions is not very much different from that of other trade unions for employees at different but lower levels in the hierarchy. The officers do not like their association to be equated with a trade union. or by academicians. Similar is the case with All India Bank Employees Association and National Union of Bank Employees. b) Nature of Managerial Association Hardly any organisation of managerial employees is a union. dearness allowance and annual bonus and other fringe benefits. and thus leading to demand for higher pay. and so may have the problem of job security which their unions may have to look after. if they had wished. it is yet to be considered as worthwhile to be concerned with either by the Government. 1860. 1927. The means and strategies may differ in the sense that the managerial unions are relatively soft in their wheelings and dealings than most of the blue-collar unions. but is an established fact. The Government could not enact a legislation concerning this aspect of trade unionism. They are known as Officers’ associations registered either under the Societies Registration Act. Though this phenomenon is more than forty years old.D. 1947. Dealing with Unions and Associations 9) 10) Gradual narrowing of wages and salaries differentials of blue and white-collar workers due to fast improvement in the wages and fringe benefits of the former organization account of their union activities. Inconsistent and discriminatory promotion and salary policies which have been causing so many conflicts and disputes. Some cases are also reported to be pending in the Courts. enabled them to receive now annual bonus worked out on the basis provided under this Act. or under the Trade Unions Act. The academicians. This may not be the problem with Blue-collar Unions as their members are almost covered by the I.

and. They may be from the rank of trainees and upward up to the rank of Deputy General Manager. Its lesser development in private sector may be due to the fact that most of the organisations in this sector are usually small. They are making it difficult for the managers to take work from them by being emboldened by the support from their union and protection they enjoy from labour legislation. It is the junior and middle level managers who provide leadership of these associations. Even whenever they are assaulted by the workmen. iii) Growing harassment of managerial staff by their subordinates: The authority of the managers has been grossly eroded by the unionised workmen and staff. Managerial unionism is more in public sector than in private sector. In fact there the unions want to bring officers unions under the banner of the existing trade unions. and in some cases even the General Manager. whereas these associations have existed in the banking industry and insurance companies for a fairly long time. and there trade unions are also not so apathetic towards officers association as they are here in India. This has made them to realise the message of “unit and organise” to protect the interest of their membership through collective bargaining. and as members of the non-executive cadre they may have had prolonged experience as members of trade unions. The emergence of Officers Associations in the public sector is relatively a new happening. Under pressure of the unionised staff top management often fails to provide the required support to junior and middle level managers. as office-bearers. they are free from the cold and impersonal atmosphere usually found in large bureaucratic organisations. ii) Feeling of insecurity is another reason for the growth of officers unions. Managerial unions have been formed to pressurise top management to provide necessary protection against such harassment.Employer-Employee Relations The officers eligible for membership of such associations are below the level of Director. therefore. Why Managerial Association i) Feeling of relative deprivation has been an important reasons for the officers/ managers to organise themselves and form their associations for obtaining fair deal from their managements. In India. 1947. These officers rise from the ranks. In small organisations the problems and difficulties of the officers do not remain unattended. if not. the matters are hushed up for maintaining industrial peace. It is after the management had negotiated a settlement with the unionise