BACHELOR OF BUSINESS ADMINISTRATION (B.B.A.

PAPER 3.5 PRINCIPLES OF PERSONAL MANAGEMENT

PAPER 3.5 PRINCIPLES OF PERSONNEL MANAGEMENT

Personnel Management Definition Objectives and Functions Role and Structure of Personnel Function in Organizations Personnel Principles and Policies

Human Resources Planning Need for Planning HRP Process ob !nal"sis ob Description ob Specification

#$e Selection Process Placement and %nduction #raining and Development Promotion Demotions #ransfers Separation

Performance !ppraisal Objectives Met$ods

&age and Salar" !dministration Factors Principles 'ompensation Plan %ndustrial (roup %ncentives )onus Fringe )enefits ob *valuation S"stem

*mplo"ee Maintenance and %ntegration &elfare and Safet" *mplo"ee Discipline Principles of Discipline (rievances 'auses Principles of (rievances Handling+

LESSON 1

PRINCIPLES OF PERSONNEL MANAGEMENT

INTRODUCTION ,Personnel Management is t$e planning- organizing- directing and controlling of t$e procurementdevelopment- compensation- integration maintenance and separation of $uman resources to t$e end t$at individual organizational and societal objectives are accomplis$ed. /*d0in Flippo1

#$is definition is a compre$ensive one and covers bot$ t$e management functions and t$e operative functions+ #$e purpose of all t$ese functions is to assets in t$e accomplis$ment of basic objectives+

Personnel Management is t$e recruitment- selection- development- utilization of and accommodation to $uman resources b" organizations+ #$e $uman resources of an organisation consist of all individuals regardless of t$eir role- 0$o are engaged in an" of t$e organisation2s activit". /*+F+%+ Frenc$1

#$is definition states t$at personnel management is planning- coordinating- and controlling of a net0or3 of sub4processes and facilitating s"stems pertaining to t$e recruitment- selection- utilizationdevelopment of an accommodation of $uman resources+

CONCEPT OF PERSONNEL MANAGEMENT On t$e basis of t$e definitions given- a fe0 basic facts and c$aracteristics ma" be noted about Personnel Management+

First- Personnel Management is concerned 0it$ managing people at 0or3+ Suc$ people or personnel does not simpl" refer to ,ran3 and file emplo"ees. or unionized labour. but also includes ,$ig$er personnel. and ,non4unionized labour.+ %n ot$er 0ords- it covers all t$e levels of personnels- including blue4collared emplo"ees /craftsmen- foremen- operatives and labourers1 and 0$ite4collared emplo"ees /professional- tec$nical and 3indred 0or3ers- managers- officials and proprietors- clerical 0or3ers and sales 0or3ers1+ #$e s$ape and form t$at personnel administrative activit" ta3es- $o0ever- ma" differ greatl" from compan" to compan" and to be effective- it must be tailored to fit t$e individual needs of eac$ organisation+

Second- it is concerned 0it$ emplo"ees- bot$ as individuals as 0ell as a group- t$e aim being to get better results 0it$ t$eir collaboration and active involvement in t$e organisation2s activities i+e+ it is a function or process or activit" aiding and directing 0or3men and 0omen in ma5imizing t$eir personnel contribution+

#$ird- Personnel Management is concerned 0it$ $elping t$e emplo"ees to develop t$eir potentials and capacities to t$e ma5imum possible e5tent- so t$at t$e" ma" derive great satisfactions from t$eir job+ #$is tas3 ta3es into consideration four basic elements- namel"- t$e capacities- interests opportunities and personall" of t$e emplo"ee+

Capaciti ! referring to t$ose abilities or attainments- in$erited or ac6uired t$at a 0or3s $as is capable of and must to a certain degree at least e5ercise in $is 0or3+

%nterests not onl" an individual2s desires and ambitions- but also $is instinctive impulsive tendenciesvague "earnings- and ill4defined cravings t$at ma" or ma" not stir $im to $is fullest action in performing $is duties+

Opportunities not onl" opportunities for advancement- but opportunities to e5ercise $is capacities and satisf" $is interests+

Personalit" t$e sum total of a 0or3er2s reaction to $is e5periences and environment- personalit" is manifest b" an individuals2 reception b" ot$ers+ #$e 0or3ers2 personalit" $as great influence upon $is opportunities+

Fourt$- since recruitment- selection- development and utilization of- and accommodation to people are an integral part of an" organized effort- Personnel Management is in$erent in all organizations+ %t is not confined to industr" alone- it is e6uall" useful and effective in government departments- militar" organizations- and non4profit institutions+ %t is a major part of t$e general management function and $as roots and branc$es e5tending t$roug$out and be"ond eac$ organisation+ #$erefore- it is rig$tl" t$e central pervasive s"stem of all organizations+

Fift$- Personnel Management is of a continuous nature+ %n t$e 0ords of (eorge R+ #err"- ,%t cannot be turned on and off li3e 0ater from a faucet- it cannot be practiced onl" one $our eac$ da" or one da" a 0ee3+ Personnel Management re6uires a constant alertness and a0areness of $uman relations and t$eir importance in ever"da" operations+.

Finall"- Personnel Management attempts at getting t$e 0iling co4operations of t$e people for t$e attainment of t$e desired goals for 0or3 cannot be effectivel" performed in isolation 0it$out t$e promotion and development of an esprit de crops+

CHARACTERISTICS AND "UALITIES OF PERSONNEL MANAGER Personnel is a delicate subject- and ot$er it matters more to 3no0 70$o2 sa"s somet$ing t$an to 3no0 70$at2 $e sa"s+ 8nless t$e personnel manager $as t$e active support of t$e top management- $e 0ill be li3e a s$ip 0it$out a rudder+ On t$e ot$er $and- if $e does not 0in t$e confidence of t$e emplo"ees and t$eir union- $e 0ill not be respected b" t$e management+ Moreover- $e $as to earn t$e esteem of $is colleagues especiall" t$ose in t$e line 0$o are more interested in immediate rat$er t$an long4term results+ He 0al3s on a tig$t rope+ #act and imagination are $is onl" guides+

#o be successful in $is job- a Personnel Manager must be a specialist in organisation t$eor" and as suc$ be an effective adviser to top management in organizational matters as 0ell as being able to

organize $is o0n Department+ Division in suc$ a manner as to minimize frictions- promote good0ill and release t$e latent energies of $is o0n people and associates to be e5pended on t$eir primar" assignments+

#$e ot$er important 6ualities t$at a Personnel Manager s$ould possess are9

/:1 /;1 /<1 /=1 />1 /@1 /A1

a mind 0it$ a capacit" for creative t$in3ing- for anal"zing situations and reasoning objectivel"+ $e s$ould 3no0 problem4solving tec$ni6ues and $ave an abilit" to inspire- motivate and direct emplo"ees+ a devoted sense of vocation and fait$ in $umanit" capacit" for leaders$ip- a sense of social responsibilit" and a standard of social justice+ personal integrit" so t$at emplo"ees ma" repose confidence in $im? capacit" for persuasion- coupled 0it$ patience and tolerancea friendl"- approac$able nature- 0$ic$ is tactful an" s"mpat$etic and a pleasing personalit"a 0ell groomed appearance- sop$isticated taste and $abits- and capable of 0or3ing 0it$ and t$roug$ ot$er people+ initiative and decision ma3ing abilit"? mobilit" of facial e5pression /0$ic$ encourages confidence- conve"s interest- registers s"mpat$" and alla"s distruct1- and finall" an abilit" to generate trust among $is colleagues and acceptabilit"- recognition for $imself and $is ideas of communication 0it$ readiness and fluenc"? a readiness to co4operate t$e sub4ordinates in times of difficult" and never to interfere or t$rust $is advice on t$ema promptitude in giving t$em t$e feedbac3s in t$eir $andling of personnel matters 0$enever necessar" in t$e interest of functioning of t$e organisation and establis$ed personnel policies of t$e compan"+

/B1 /C1 /:D1 /::1 /:;1

OB#ECTI$ES OF PERSONNEL MANAGEMENT One of t$e principles of management is t$at all t$e 0or3 performed in an organisation s$ould- in some 0a"- directl" or indirectl"- contribute to t$e objectives of t$at organisatoin+ #$is means t$at t$e determination of objectives- purposes or goals is of prime importance and is a pre4re6uisite to t$e solution of most management problems+ Objectives are pre4determined ends or goals at 0$ic$ individual or group activit" in an organisation is aimed+

/a1 P%i&a%' O() cti* !+ in t$e first instance- relate to t$e creation of and distribution of some goods or services+ #$e Personnel Department assists t$ose 0$o are engaged in production- in sales- in distribution and in finance+ #$e goal of personnel functions t$e creation of 0or3 force 0it$ t$e abilit" and motivation to accomplis$ t$e basic organizational goals+

Secondl"- t$e" relate to t$e satisfaction of t$e personal objectives of t$e members of an organisation t$roug$ monetar" and non4monetar" devices+ Monetar" objectives include profits for o0ners- salaries and ot$er compensation for e5ecutives- 0ages and ot$er compensation for emplo"ees- rent for t$e lando0ners and interest for s$are E stoc34$olders+ Non4monetar" objectives include prestige- recognition- securit"- status or some ot$er ps"c$ic income+ #$irdl"- t$e" relate to t$e satisfactions of communit" and social objectives suc$ as serving t$e customers $onestl"- promoting a $ig$er standard of living in t$e communit"- bringing comfort and $appiness to societ"- protecting 0omen and c$ildren- and providing for aged personnel+

/b1 T, S c-./a%' -() cti* ! aim at ac$ieving t$e primar" objectives economicall"- efficientl" and effectivel"+ #$e fulfillment of t$e primar" objectives is contingent upon+ /:1 #$e economic need for or usefulness of- t$e goods and services re6uired b" t$e communit" societ" /;1 'onditions of emplo"ment for all t$e members of an organisation 0$ic$ provide for satisfaction in relation to t$eir needs- so t$at t$e" ma" be motivated to 0or3 for t$e success of t$e enterprise /<1 #$e effective utilization of people and materials in productive 0or3 /=1 #$e continuit" of t$e enterprise #$e integration of interests of emplo"ees and management are as follo0s9

C,a%t 1 I.t 0%ati-. -1 I.t % !t! -1 E&p2-' ! a./ Ma.a0 & .t

*mplo"ee2s %nterests :+ Recognition as an individual ;+ Opportunit" development =+ %nterest in 0or3 >+ Safet" $ealt$" 0or3ing conditions @+ !cceptable $ours of 0or3 and ade6uate 0ages A+ Fair and efficient leaders$ip for e5pression :+ or ;+ <+ =+ >+ @+ A+

Management2s %nterests Fo0est unit personnel cost Ma5imum productivit" of emplo"ees !vailabilit" and stabilit" of emplo"ees 'o4operation of emplo"ees 'o4operation of emplo"ees Hig$ organizational moral %ntelligent initiative of emplo"ees

<+ *conomic Securit"

LESSON 3 NATURE OF PERSONNEL MANAGEMENT

1. BASED ON PRINCIPLES Management of personnel is a difficult job- for t$e simple reason t$at $uman beings cannot easil" conform to an" set of pattern of attitudes and be$aviour+ *ac$ individual 0or3er $as $is o0n attitudesbeliers and temperamental ma3e4up+ #$e factors t$at 0ould motivate $im to be lo"al and efficient can onl" be a matter of speculation+ Get Personnel Management is based on certain 0ell4defined principles $aving been evolved after a great deal of researc$ and e5perimentation+

3. A NE$ER ENDING E4ERCISE Personnel Management as a function needs to be performed on a continuous basis+ %t involves t$e delicate 6uestion of management of $uman relations- 0$ic$ $ave to be nurtured li3e a delicate plant 0it$ a great deal of care and caution on a regular basis+

3. ESPIRIT DE CORPS #$e object of Personnel Management is creation of team spirit among 0or3ers and managers+ #$is can be possible onl" 0$en emplo"ees identif" t$emselves completel" 0it$ t$e objectives of t$e underta3ing- 0$ic$ on its part assures t$em ma5imum material and mental satisfaction from t$e 0or3 performed b" t$em+

5. OPTIMUM CONTRIBUTION #$e success of Personnel Management lies in securing optimum contribution from emplo"ees to0ards accomplis$ment of t$e organizational objectives+ )ut optimum contribution from 0or3ers does not mean t$at t$e" s$ould be e5ploited to put in $ard 0or3+ %t onl" means t$at ever" 0or3er s$ould be given t$e 0or3 t$at suits $is capabilit"- interests- aptitude and e5perience- so t$at $e is enabled to s$o0 $is best performance+ !lso- it means t$at ever" 0or3er s$ould be given ade6uate opportunities for Personnel advancement+

OB#ECTI$ES OF PERSONNEL MANAGEMENT #$e various objectives of Personnel Management ma" be summarized as belo09 O() cti* !

S-cia2 :+ 'reation emplo"ment opportunities of

P %!-.. 2 :+ !de6uate remuneration

E.t %p%i! :+ Recruitment integration maintenance competent lo"al 0or3ers ;+ Forecasting H of and H

U.i-. :+ Recognition unions of

;+ Ma5imizing

;+ ob securit"

;+ Formulation

of

productivit"

balancing t$e demand H suppl" of personnel <+ #raining development H

personnel policies in consultation 0it$ unions <+ %nculcating spirit of self4discipline- co4 operation

<+ !ffording ma5imum material H material satisfaction to 0or3 force+ =+ !voidance 0astage effort >+ Promotion $ealt$" relation @+ of

=+ ob satisfaction >+ Opportunities advancement for

of $uman

@+ Proper 0or3 environment

1. SOCIAL OB#ECTI$ES ! business organisation is a part of t$e societ" in 0$ic$ it functions+ %ts Personnel Management policies $ave to be in tune 0it$ t$e social objectives+ First- it s$ould aim at ma5imizing emplo"ment opportunities+ #$is assumes greater importance in t$e conte5t of a countr" faced 0it$ t$e problem of unemplo"ment Secondl"- t$e jobs to be created s$ould be suc$ t$at t$e" secure ma5imum material and mental satisfaction to be personnel performing t$em+

3. P %!-.. 2 -() cti* ! (ood Personnel Management is concerned 0it$ providing ma5imum material and mental satisfaction to eac$ individual emplo"ee+ (enerall"- t$is is accomplis$ed b" t$e provision of+ a1 !de6uate remuneration b1 ob securit"

c1 Facilities for proper training H development d1 %ncreased job satisfaction e1 Opportunities for advancement and f1 Proper 0or3 environment

3. E.t %p%i! -() cti* ! Pursuit of social and individual objectives s$ould be blended 0it$ t$e enterprise objectives+ Personnel Management s$ould aim at recruiting and retaining competent- lo"al and mentall" 0ell adjusted team of 0or3ers+ !lso t$e various posts in t$e enterprise s$ould be manned b" $ig$l" competent and contented 0or3ers+ %t s$ould also see3 to create a sense of belonging among t$e emplo"ees so t$at 0$en t$e occasion demands- t$e" 0illingl" sacrifice t$eir individual interests for t$e sa3e of group interests+

5. UNION OB#ECTI$ES Personnel Management in t$e modern times is invariabl" called upon to deal 0it$ labour unions+ #$is re6uires utmost tact and caution- particularl" in matters concerned 0it$ recognition of representative union- formulation of personnel polic" in consultation 0it$ t$em- and creation of an atmosp$ere 0$ere t$e" are obliged to practice self4discipline and co4operate 0it$ t$e management+

CHARACTERISTICS OF A GOOD PERSONNEL POLIC6 *ver" enterprise s$ould relate its personnel polic" to t$e economic- legal social and tec$nological factors present in t$e societ" in 0$ic$ it operates+ #$is mean it $as to 3eep on adjusting and adapting its personnel polic" to suit an" c$ange in t$ese factors+ ! good personnel polic" s$ould posses t$e follo0ing c$aracteristics9 1. Protection of the interest of all parties%t s$ould ta3e into account t$e interests of all parties associated 0it$ t$e enterprise- i+e+ 0or3ersentrepreneurs- consumers- government and communit"+ 2. Promotion of enterprise policies%t s$ould fit into t$e basic overall policies of t$e enterprise+

3. Precision and certainty%t s$ould be clear- to t$e point- and complete in ever" respect+ %t s$ould not lead to var"ing and confliction interpretations+

4. Flexibility %t s$ould not be so rigid and infle5ible t$eir it cannot be adjusted and adapted to c$anges in economiclegal social and tec$nological factors+

5. Stability*ven t$oug$ t$e personnel polic" $as constantl" to be adjusted and adapted to suit an" c$anges in economic- legal social and tec$nological factors- it s$ould be reasonabl" stable and permanent+

6.

esponsi!eness pre!ailin" trends#

%t s$ould be capable of being adjusted to t$e prevailing norms and trends in societ"+ For e5ample- if t$e current t$in3ing is in favour of involving 0or3ers in t$e management process- t$e polic" s$ould not be against it+

$. %nte"rati!e %t s$ould ta3e into account t$e differing capacities- capabilities- interests- desires- aspirations- beliefs and temperamental ma3e up of t$e people for 0$om it is intended+

&. 'niformly %t s$ould be uniforml" applicable to all members and all units of t$e enterprise+

(. )cceptability %t s$ould enjo" acceptabilit" among t$e people for 0$om it $as been formulated+

1*. Proper comm+nication%t s$ould be properl" communicated to all t$ose for 0$om it is intended+ *5ample of a (ood Personnel Polic"4 :+ #o pa" all emplo"ees ade6uatel" for services rendered+ ;+ #o maintain responsible $ours of 0or3 and safe 0or3ing conditions <+ #o provide continuous emplo"ment consistent 0it$ business conditions =+ #o place emplo"ees in t$e 3ind of 0or3 best suited to t$eir abilities+ >+ #o $elp eac$ individual to progress in t$e compan"2s services+ @+ #o aid emplo"ees in time of need+ A+ #o encourage t$rift B+ #o co4operate in social- at$letic and ot$er recreational activities+ C+ #o accord to eac$ emplo"ee t$e rig$t to discuss freel" 0it$ e5ecutives an" matter concerning $is or $er 0elfare or t$e compan"2s interest+ :D+ #o carr" on t$e dail" 0or3 in a spirit of friendliness+

LESSON 3 ORGANISATION OF THE PERSONNEL DEPARTMENT

#$e Personnel Department- 0$ere it e5ists as in case of large organizations- is generall" $eaded b" a personnel manager+ #$e activities are t$ereafter divided into division suc$ as *mplo"ment- #raining*mplo"ees services- &age and Salar"+ !dministration and Manpo0er Planning+ *ac$ of t$ese departments or division can t$en be sub4divided+ For e5ample- t$e *mplo"ment division can be divided in to recruitment and selection+ Similarl"- #raining can be sub4divided into training of non4supervisor" and supervisor" staff+ #$ere can be eit$er a separate department for &age and Salar"+ !dministration or it can be combined 0it$ Fabour Relations+ !gain- t$e Manpo0er planning activities can be divided into manpo0er forecasting- organisation planning- managerial recruiting- management developmentperformance evaluation and manpo0er researc$+ #$us- t$ere are ma" 0a"s in 0$ic$ a department2s 0or3 can be organized- particularl" t$at of personnel department+

ROLE OF PERSONNEL MANAGEMENT IN INDUSTR6 Oliver S$eldon once observed- ,No industr" can be rendered efficient so long as t$e basic fact remain unrecognized t$at it is principall" $uman+ %t is not a mass of mac$ines and tec$nical processes but a bod" of men.+ !n industrial societ" is conspicuous b" t$e comple5 nature of forces 0$ic$ influence t$e be$aviour of individuals and groups 0it$in and outside t$eir 0or3place+ #$e focus of Personnel Management for a long time in t$e past $as been management of industrial relations including emplo"er2s relations$ip 0it$ individual emplo"ees and t$e relations$ip bet0een t$e management and organized unions+ %ndeed during t$e last t$irties and forties- t$e terms ,industrial relations. and ,labour relations. 0ere popularl" used 0it$ reference to personnel functions due to t$e rise in collective bargaining and ot$er related functions+ *ven no0- 0$en industrial conflicts and disputes pose serious problems to management- t$e personnel managers attac$ $ig$est priorit" to t$e settlement of industrial disputes t$an an"t$ing else+

ROLE OF PERSONNEL MANAGER IN AN ORGANISATION #$e role of personnel managers in practice lies in $o0 t$e" fit into t$e da" to da" functioning of t$e organisation+ ! personnel manager is consulted for all activities and operations of t$e organisation+ #$e mores of societ" and values of dail" life- diverse social groups etc+ 0ill $ave t$eir organizational counterpart+ !t times- t$ese pressures ma" involve t$e env" and suspicion of various social or religious groups+ *conomic instabilities fear or unemplo"ment etc+ complicate t$e field of Personnel Manager+ %deall"- t$e personnel manager s$ould be a lobb"ist directing managerial attention to $uman problemjust as finance assesses costs mar3eting emp$asizes customers personnel is people centred+ Success depends on t$e degree of perception and $is realistic contribution to solve management problems+ #$ose in t$e personal department $ave status problems+ #$eir jobs involve social 0or3 and record 3eeping responsibilit" for $andling miscellaneous perip$eral activities and t$e fact t$at s$ort sig$ted top management offer transfer less t$an successful e5ecutive to safe personnel position all contribute to t$e diminis$ed status+ Failure to recognize t$at effective management of $uman resources is a crucial factor associated 0it$ gro0t$ is a big problem+ #$e nature of personnel function is ambiguous and confusing+ #$e personnel man engages in $ig$ and lo0 status activities+ His role as adviser often seems inconsistent 0it$ t$e role as an auditor and stabilizer+ #$e personnel 0or3 is no doubt a specialt" but it is t$e $eart of ever" managers jobs+ #$e successful personnel man must gain

confidence and respect of $is colleges in ot$er departments+ He s$ould persuade t$em and ma3e t$em understand t$at $e is $elping t$em to solve problems to ac$ieve t$eir goal- to meet t$eir objectives t$at $e is using tec$ni6ues t$at are useful and valid- t$at $e is not embarrassing t$em or s$o0ing off+ Personnel man s$ould never see3 credit for victories+

(A) POLIC6 INITIATION AND FORMULATION Polic" initiation and formulation is one of t$e important tas3s of a personnel manager+ %t is 0it$ a vie0 to overcome problems of a recurring nature- or to prevent anticipated problems in t$e area of $uman resource management t$at compan" policies are framed to communicate to emplo"ees t$e basic grouped rules 0$ic$ t$e organisatoin functions and t$us avoid discrimination- inconsistenc" ad$ocism and confusion over rig$ts and obligations+ #$e personnel manager also $elps management in t$e formulation of policies on 0age and salar" administration- 0elfare activities- personnel records and statistics- good 0or3ing environment etc+ P %!-.. 2 D pa%t& .t 7 O%0a.i!ati-. C,a%t Personal Manager !ctive !rea Functions *mplo"m ent Personnel Manager

&age and Salar" !dministra tion

%ndustrial Relations

Organisati on Planning and Developm ent

*mplo"ee Services

Recruitme nt

*mplo"ee 'lassificati on Rate Determina tion Merit Ratings

'ommunic ation

Organisati on Planning

Medical Services

Selection

'ollective )argaining

Recreatio n

Sub4 Function and Major Functional *lements

%nduction

Personal Services

Promotion and #ransfer

Suppleme nt 'ompens

*mplo"ee Discipline

Manpo0e r Developm

Safet"

ation Separatio n &or3 Sc$edule 'ontrol Personnel Researc$

ent #raining Protection and Securit"

(B) AD$ISOR6 ROLE #$e advisor" role of personnel manager is of crucial importance+ #$e manages are generall" confronted 0it$ t$e variet" of problems in t$en done da" operations+ #$e personnel manager can devise t$em to resolve t$ese problems satisfactoril"+ #$ese problems ma" include grievance over distribution of an"time 0or3- annual increase in pa"- transfer- promotion- disciplinar" action+ %n all suc$ matters- t$e personnel manager can offer useful advise because $e is familiar 0it$ personnel polic"labour agreement past practice etc personnel advise also includes preparation and communication of bulletins preparation and communication of bulletins- reports and procedural guidelines for t$e interpretation and implementation of policies+ (C) PROBLEM SOL$ER ROLE #$e personnel manager can also $elp- line managers to 3no0 t$eir defects and solve t$eir problems+ !s auditors- t$e personnel manager s$ould be conscious of difficulties 0$ic$ eac$ manager faces in meeting t$e $ig$ standard set for $is unit b" top management+ )" $elping t$em to sort out t$eir difficulties and b" providing t$em 0it$ s3ills and e5pertise in coping 0it$ t$em- t$e personnel manager can render invaluable assistance+ (D) MEDIATOR ROLE #$e personnel manager often acts as mediator in t$e event of conflict bet0een emplo"ees or groups of emplo"ees- superior and subordinate management and emplo"ees- and t$us maintains industrial peace and $armon" in t$e organisation+ (E) 8ELFARE ROLE #$e personnel manager also acts as 0elfare officer in t$e organisation+ !s 0elfare officer- $e deals 0it$ t$is follo0ing aspects9 /:1 Researc$ in personnel and organizational problems+ /;1 Managing emplo"ee services canteen- grain crops- transport- co4operative- crIc$es etc+ /<1 (roup d"namics group counseling- motivation- leaders$ip- communication etc+ (F) REPRESENTATI$E ROLE #$e personnel manager is generall" a spo3esman for management or representative of t$e compan"+ %t is because $e $as better understanding and overall picture of t$e compan"2s operations+ Sometimes $e also acts as 0or3ers representative to put for0ard t$eir problems to management- particularl" in non4unionized organisation+ (G) DECISION MA9ING ROLE

#$e personnel manager also pla"s an effective role in decision4ma3ing on issues related to $uman resources+ He formulates and designs objectives- policies and programmes of $uman resources management+ (H) CONDUCT RESEARCH #$e personnel manager underta3es personnel researc$ in order to 3eep management constantl" informed about problems and issues so t$at better decisions can be made b" management on matters affecting personnel+

(I) DE$ELOPING EFFECTI$E APPRAISAL S6STEM #$e responsibilit" of personnel manager also includes development of an effective appraisal s"stem 0$ic$ ma" be used b" management to provide a current inventor" of manpo0er resources in t$e organisation+ (#) MANAGEMENT AND TRAINING #$e personnel manager is invariabl" re6uired to conduct programme of management education and training for t$e members of t$e organisation in order to develop t$eir s3ill and competence (9) EFFECTI$E COMMUNICATION Personnel manager aids management in assuring effective communication t$roug$out t$e organisation+ #$is develops cordial emplo"s management relations+ #$us- t$e job of a personnel manager $as become ver" c$allenging t$ese da"s+ %t re6uires specialized s3ills of dealing 0it$ people+ #$e c$arge of personnel department is t$us entrusted to t$e person 0$o possesses necessar" s3ills and $as 6ualities of integrit" and personalit"+ "UALITIES OF PERSONNEL MANAGER Personnel manager is an important member of management team in an organisation+ )ut t$e personnel manager2s job is a delicate one+ %n t$e present era of information tec$nolog"- on account of increases in size of business organisation- globalization of business activities- increase in degree of competition- c$ange in tec$nical 3no04$o0- t$e tas3 of personnel manager $as become ver" tedious and complicated+ #o $andle t$e job smoot$l"- besides t$e 3no0ledge of specialized area- a personnel managers e5pected to posses t$e 3no0ledge of p$ilosop$"- et$ics- logic- mat$ematics- sociolog"management and economics+ #$e 3no0ledge of multiple disciplines mentioned above- can $elp- $im to understand $uman nature and conduct- morale and value judgement- principles governing t$e s"stem optimizing c$oices among completing uses of limited resources s3ilful leaders$ip of organisatoin groups etc+ ! successful personnel manger is broadl" e5pected to possesses t$e follo0ing 6ualities9

/i1 S .! -1 $-cati-. 7 #$e responsibilities of t$e personnel manager are so $eav" t$at t$e" cannot $e disc$arged 0it$out some sense of an inner urge+ #$at is 0$"- t$e possibilities of disappointment are greater in a personnel job+ #$e onl" safeguard against disappointment is t$e abilit" to dra0 upon t$e springs of an unfailing idealism+ #$e personnel manager must $ave fait$ in $umanit" and also in t$e possibilit" of creating a finer social and industrial order+

/ii1 Capacit' -1 L a/ %!,ip 7 #$e personnel manager $as a dual role- to advise t$e management of $uman problems and secondl"- to e5ercise leaders$ip in man" matters effecting t$e 0or3ers+ He s$ould be read" to face opposition and spea3 0it$out fear from an" level of management or an" group of 0or3ers+ He s$ould be in a position to convince ot$ers about $is vie0 point and to provide leaders$ip in t$e organisation+ /iii1 P %!-.. 2 I.t 0%it' 7 Personnel manager must be a man 0$o can be trusted completel" so t$at member of t$e organisation ma" not $esitate to come to $im 0it$ t$eir 0orries- an5ieties and problems+ *ven fello0 managers and directors s$ould confide in $im for t$eir difficulties+ #$e personnel manager is concerned 0it$ $uman relations problems more t$an an" bod" else in t$e organisatoin- so $e s$ould be a man of great integrit"+ /iv1 S .! -1 S-cia2 R !p-.!i(i2it' 7 !n organisatoin is a part of societ" and it dra0s various factors of production from societ"+ %t $as social obligations to various groups li3e s$are$olders- customers0or3ers- suppliers and t$e government+ #$e personnel manager s$ould $ave a sense of social responsibilit" so as to $elp t$e organisatoin disc$arge its social obligations+ /v1 Sp-.ta. it' -1 Sp c, 7 Readiness and fluenc" of spea3ing combined 0it$ t$e necessar" vocabular" and t$eir meaning are essential for a personnel manager+ People are more at ease before one 0$o 6uic3l" p$rases t$e 0ords of 0elcome or introduction+ !bilit" to e5press oneself 0it$ precision avoids misunderstanding+ /vi1 Facia2 E:p% !!i-. 9 !bilit" to give facial e5pression to sentiments and emotion is also important for t$e personnel manager because it $elps in dealing 0it$ personnel more effectivel"+ /vii1 C-;%t !' a./ S-cia2 A<a% . !! 7 #$e personnel manager is actuall" an $uman relation manager+ He $as to spea3 to people of all grades and ran3s- trade union leaders- 0or3er2s representative in committees- and members of t$e board of directors+ For all t$ese occasions $e is better e6uipped if $e possesses a sense of courtes" and social a0areness /viii1 P %!-.. 2 Di0.it' 7 #$e personnel manager s$ould be able to interact 0it$ people and "et not be one of t$em+ His job is bigger t$an $imself and t$is fact must be a measure of $is actionrat$er t$an onl" code of eti6uettes or standard+

FUTURE ROLE OF PERSONNEL MANAGERS %n vie0 of t$e impending c$anges in t$e social- economic and tec$nological environment of business and industr" at a fast pace- of future role of personnel managers 0ould lie in t$eir abilit" to accept t$e process of c$ange involving a readjustment in t$e e5citing functions of t$e personnel department+ Modernization of plants and mac$iner" and introduction of ne0 tec$nolog" 0ill not onl" involve retraining of manpo0er but also increasing stresses- strains and resistance to c$ange- and to resolve t$e problems ne0 approac$es to man management 0ill $ave to be adopted+ #$e personnel manager 0ill t$us $ave to be development oriented and 0ill need to be conversant 0it$ latest developments in t$e fields of industrial engineering- social ps"c$olog" and organizational be$aviour+ He 0ill $ave to initiate meaningful personnel researc$ in t$e lig$t of c$anging social- political and economic conditions$elp managers to anticipate personnel problems 0$ic$ ma" arise due to contemplated c$anges in manufacturing processes and personnel policies- and be conscious of cost4effectiveness as regards t$e functions of t$e personnel department as 0ell as proposals t$at $e ma" submit for consideration of top management+

LESSON 5 PERSONNEL PLANNING

Personnel planning involves an accurate determination of t$e present and future manpo0er needs of t$e enterprise and e5ploration of t$e sources to meet t$e same+ !ssessment of personnel re6uirements $as bot$ numerical and 6ualitative dimensions- and it is intimatel" lin3ed 0it$ t$e immediate and long4 range objectives and plans of $e enterprise+ ELEMENTS OF PERSONNEL PLANNING Personnel planning comprises4 /:1 !ssessment of t$e present manpo0er position /;1 !ssessment of t$e direction in 0$ic$ t$e enterprise is $eaded i+e+- its immediate and long range objectives and plans+ /<1 'onsideration of t$e effects of t$ese objectives and plans on t$e future demand and suppl" of personnel- and /=1 )alancing of t$e demand and suppl" of personnel to avoid an" e5cess or s$ortage of personnel+ 1. PRESENT MANPO8ER POSITION !n assessment of t$e present manpo0er position 0ill call for /a1 !n anal"sis of t$e emplo"ees currentl" 0or3ing in t$e enterprise /b1 !n evaluation of t$e jobs being done b" t$em #$is 0ould involve collection of particulars suc$ as names- age- educational 6ualification- traininge5perience and specialized s3ills of t$e emplo"ees presentl" 0or3ing in t$e enterprise+ %t 0ould give an idea of t$e $uman resources presentl" available to t$e enterprise on t$e basis of 0$ic$ it 0ill be possible to 3no0 0$et$er it can profitabl" e5pand its activities- and also 0$ic$ of t$e emplo"ees are to be trained- developed- promoted- or transferred to ot$er jobs+ #$ese particulars 0ould also s$o0 0$et$er t$ere is over4staffing or under4staffing in t$e enterprise- as also t$e number and time of replacements to be arranged upon retirement of t$e e5isting emplo"ees+ !nal"sis or evaluation of t$e jobs being performed b" t$e present emplo"ees 0ill $ig$lig$t+ /a1 #$e nature of 0or3 done b" eac$ 0or3er /b1 #$e met$od emplo"ed b" $im to do it+ /c1 #$e rationale of doing it as suc$ /d1 #$e s3ills- education and training re6uired to perform t$e 0or3? /e1 Ho0 t$is particular job is related to ot$er jobs and /f1 &$at p$"sical and environmental conditions need to be created for proper performance of t$e job+ !fter careful anal"sis of eac$ job- job descriptions ma" be 0ritten out+ #$ese 0ill give precise details of eac$ job as also t$e 6ualities and 6ualifications re6uired to do it 0ell+ (enerall"- a job description 0ould give t$e follo0ing details9 /a1 Name or title of t$e job- and its location /b1 Nature of duties and operations to be performed

/c1 !ut$orit"- responsibilities and accountabilit" /d1 Necessar" 6ualifications i+e+ educations- s3ills- training- temperamental ma3e4up- e5periencep$"sical standards etc+ /e1 'riteria b" 0$ic$ job4$olders2 performance is to be measured and evaluated+ ! job description ma" not al0a"s include t$e 6ualifications necessar" for t$e job4$older 0$ere it does not- t$ese are separatel" indicated in a job specification+

3. DIRECTION IN 8HICH THE ENTERPRISE IS HEADED !ssessment of t$e direction of t$e enterprise 0ill call for a careful anal"sis of t$e objectives and plans of t$e enterprise for t$e immediate and distant future From t$is- it 0ill become eas" to $ave to broad idea about t$e number and 3inds of personnel t$at 0ould be needed to accomplis$ t$e long4term and s$ort4term enterprise objectives and plans+ !s for t$e objectives and plans decided b" an enterprise- t$ese are in a large measure determined b" t$e demand for goods or services offered b" t$e enterprise+ %f t$e demand for its goods and services s$o0s a rising trend- it ma" plan to earn larger profits in 0$ic$ case it 0ill need a larger number of personnel to enable it to do so+ )ut it is not as if t$e necessar" number and 3inds of personnel can be made to order+

3. FUTURE PERSONNEL DEMAND AND SUPPL6 Having assessed t$e current personnel situation and t$e future direction of t$e enterprise in terms of sales and income for casts- estimates of future personnel re6uirement can easil" be made+ Naturall"an" suc$ estimate 0ill $ave to be based on one2s e5perience and judgement as moderated b" a stud" of t$e past and present trends+ Ho0ever- it needs to be noted t$at suc$ estimates cannot be absolutel" fla0less- for t$e simple reason t$at it is impossible to find an e5act substitute for an" 0or3er+ !lso- t$at a 0or3er accustomed to 0or3ing in one department cannot be made to adjust $imself overnig$t to 0or3ing in anot$er department+ #$ere is "et anot$er problem+ Forecasting of personnel re6uirements involves an estimate not onl" of t$e number of personnel re6uired- but also t$eir t"pes+

SOURCES OF INTERNAL SUPPL6 #$e sources of personnel ma" be4 /a1 Ne0 recruitments /b1 %nter4departmental transfers of e5isting personnel or /c1 *5isting personnel reporting bac3 for 0or3 after t$e e5pir" of t$eir leave period Of t$ese- t$e number of personnel to be ne0l" recruitment can be easil" determined+ #$is is because t$e process of recruitment is initiated b" t$e enterprise itself- and it is not difficult to 3no0 0$at number and t"pes of personnel 0ould be needed to accomplis$ its objectives at least in t$e s$ort run+

SOURCES OF E4TERNAL SUPPL6 #$e first source of e5ternal suppl" of personnel- are sc$ools and colleges from 0$ic$ students pass out ever" "ear+ House0ives- see3ing part4time or full time emplo"ment to supplement t$e famil" income also e5pand t$e suppl" of personnel+ Students loo3ing for part4time jobs also contribute to t$is suppl"+ Fast- but not least- are t$ose 0$o- t$oug$ emplo"ed- searc$ for better and more lucrative or part4time jobs+

5. BALANCING THE DEMAND AND SUPPL6 OF PERSONNEL &$ile an enterprise ma" not be in a position to do an"t$ing about an" increase or decrease in e5ternal personnel suppl"- it can certainl" benefit b" anticipating it and relating it to its o0n future re6uirements of personnel+ For e5ample- if it anticipated s$ortage of an ade6uate number and 3inds of personnel- it can ta3e steps to recruit suitable persons 0$et$er to meet its current or future needs+ Similarl"- it ma" plant inter4departmental transfers of its personnel if t$e rig$t number and 3inds of personnel are not readil" available+ &$et$er t$e forecast indicates s$ortage or surplus of personnel- t$e basic purpose of personnel planning is to ensure t$at t$ere is al0a"s a proper balance bet0een t$e numbers- s3ills and 6ualit" of personnel emplo"ed b" it+

LESSON 5 FUNCTIONS OF PERSONNEL MANAGEMENT

Functions of personnel management #$e functions of Personnel Management are9 /:1 Managerial functions? and /;1 Operative functions+

C,a%t 3 F;.cti-.! -1 P %!-.. 2 Ma.a0 & .t

I.p;t! Human /Managemen t H men1 and *conomic /materialsmac$iner" and mone"1 Resources interacting 0it$ *nvironment al c$anges P2a..i.0 Determinati on of s$ort4 to long4 range plans to accomplis$ organisation objectives O%0a.i=i.0 Development of t$e organisation structure according to pre4 determined plans Di% cti.0 Stimulation and motivation of organisatoin personnel according to pre determined plans C-.t%-22i.0 !ssurance t$at directed action is ta3ing place according to pre4 determined plans O;tp;t (oods an service needed b" organisatoin customers+

Feedbac3 of significant deviations from planned performance

1. MANAGERIAL FUNCTIONS ,Management is a multi4purpose organ 0$ic$ $as t$ree jobs- t0o of 0$ic$ are directl" related to personnel managing a business- 7Meaning Managers2 and 7managing 0or3ers2 and t$e 0or3.+

Management is- t$us personnel administration+ %t is t$e developed of t$e people and not t$e direction of t$ings+ Managing people is t$e $eart and essence of being a manager+ #$us- a Personnel Manager is a manager and as suc$ $e must perform t$e basic functions of management+ He e5ercises aut$orit" and leaders$ip o0es ot$er personnel+ His functions involve POSD'OR)- i+e+ planning- organizing- staffingdirecting- co4ordinating- reporting and budgeting t$e 0or3 of t$ose 0$o are entrusted 0it$ t$e performance of operative functions+ %n ot$er 0ords- managers procure- process and peddle- find and emplo" resources- develop services and find mar3ets for t$eir output+

/a1 Planning is a pre4determined course of action+ !ccording to !llen- ,%t is a trap laid to capture t$e future.+ #err" is of t$e vie0 t$at ,planning is t$e foundation of most successful actions of an" enterprise.+ Planning is t$e determination of t$e plans- strategies- programmes- policiesprocedures and standards needs to accomplis$ t$e designed organisation objectives+ %n fact,planning toda" avoids crises tomorro0.+ Planning is a $ard job- for it involves t$e abilit" to t$in3- to predict- to anal"ze and to come to decisions- to control t$e actions of t$e personnel and to cope 0it$ a comple5- d"namic fluid environment+ /b1 Organizing 9 !fter a course of action $as been determined- an organisation s$ould be establis$ed to carr" it out+ !ccording to +'+ Massie- ,!n organisatoin is a structure- a frame0or3 and a process b" 0$ic$ a cooperative group of $uman beings allocates its tas3s among its members- identifies relations$ips and integrates its activities to0ards common objectives+. #$is is done b" designing t$e structure of relations$ips among jobs- personnel and p$"sical factors+ !n organisation is t$e 0edding of aut$orit" and responsibilit" because- in its essentials- it consists of t$e assignment of specific functions to designated persons or departments 0it$ aut$orit" to $ave t$em carried outand t$eir accountabilit" to management for t$e results obtained+ /c1 Directing /motivating- actuating or commanding1 t$e subordinates at an" level is a basic function of t$e managerial personnel+ !ccording to Mc(regor- ,man" managers 0ould agree t$at t$e effectiveness of t$eir organisatoin 0ould be at least doubled if t$e" could discover $o0 to tap t$e unrealized potential present in t$eir $uman resources+ ,Directing is involved 0it$ getting persons toget$er and as3ing t$em /eit$er t$roug$ command or motivation1 to 0or3 0illingl" and effectivel" for t$e ac$ievement of designed goals+ Directing deals not onl" 0it$ t$e dissemination of order 0it$in an organisation units and departments- but also 0it$ t$e acceptance and e5ecution of t$ese orders b" t$e emplo"ee+ #$e decisions are ta3en b" t$e top management- but onl" after consultation 0it$ t$e personnel department+ /d1 'oordinating and controlling coordinating refers to balancing timing and integrating activities in an organisation to t$at a unit" of action in pursuit of a common purpose is ac$ieved+ %n t$e ot$er 0ords of #err"- , coordination deals 0it$ t$e tas3 of blending efforts in order to ensure a successful attainment of an objective.+ 'o4ordination t$e management of personnel ta3es places at all levels from t$e top management t$roug$ to t$e supervisor and t$ose for 0$om $e is responsible+

'ontrolling is t$e act of c$ec3ing- regulating and verif"ing 0$et$er ever"t$ing occurs in conformit" 0it$ t$e plan t$at $as been adopted t$e instructions issued and t$e principles establis$ed+ %t is greatl" concerned 0it$ actions and remedial actions+ %t is not just score 3eeping+ %t is not just plotting t$e course and getting location reports? but rat$er it is steering t$e s$ip+. %t is t$roug$ control t$at actions and operations are adjusted to pre4determined standards and its basis is information in t$e $ands of t$e managers+ #$oug$ all t$e above functions are performed at all levels of management t$e amount of time devoted to eac$ function varies for eac$ management level+ #$e top management performs planning functions more t$an does t$e supervisor" management+ On t$e ot$er $and- supervisors at t$e t$ird rung of t$e management p"ramid devote more of t$eir time to directing and controlling production+

Ma.a0 & .t F;.cti-.! > Ma.a0 %ia2 L * 2!

Percentage of ob :DD

Managerial #"pe of &or3

8nit Managers Foreman

Supervisor Supervisor #endents

Plant Managers Departmental Managers

President )oard of Directors

Jice President

Operating Management 3. Op %ati* F;.cti-.!

Middle Management

#op Management

#$e operative functions of personnel management are concerned 0it$ t$e activities specificall" dealing 0it$ procuring- developing- compensating and maintaining an efficient 0or3 force+ #$ese functions are also 3no0n as service functions+ (a) T, P%-c;% & .t F;.cti-. is concerned 0it$ t$e obtaining of a proper 3ind and number of personnel necessar" to accomplis$ an organization2s goals+ %t deals 0it$ specificall" 0it$ suc$ subjects as t$e determination of man po0er re6uirements- t$eir recruitment selection and placement /comprising activities to screen and $ire personnel- including application formsps"c$ological tests- intervie0s- medical c$ec34up- reference calling- induction- follo04uptransfers- la"4offs- disc$arge and separation- etc+ (() T, D * 2-p& .t 1;.cti-. is concerned 0it$ t$e personnel development of emplo"ees b" increasing t$eir s3ill t$roug$ training so t$at job performance is properl" ac$ieved+ Drafting and directing training programmes for all levels of emplo"ees- arranging for t$eir on4t$e4job- office and vestibule4training- $olding seminars and conferences- providing for educational and vocational counselling and appraising emplo"ee potential and performance are underta3en under t$is function+ (c) T, C-&p .!ati.0 1;.cti-. is concerned 0it$ securing ade6uate and e6uitable remuneration to personnel for t$eir contribution to t$e attainment of organizational objectives+ Functions related to 0age surve"s- establis$ment of job classifications- job descriptions and job anal"sismerit rating- t$e establis$ment of 0age rates and 0age structure- 0age plans and policies0age s"stems incentives and profit4s$aring plans- etc+ fall under t$is categor"+ (/) I.t 0%ati-. 1;.cti-. !fter t$e emplo"ee $as been procured- $is s3ill and abilit" developed and monetar" compensation determined- t$e most important- "et difficult of t$e Personnel Management is to bring about an ,integration. of $uman resources 0it$ organisation- and to cope 0it$ inevitable conflicts t$at ensure- ,%ntegration. is concerned 0it$ t$e attempt to effect a reasonable reconciliation of individual-+ Societal and organisation interests+

( ) T, Mai.t .a.c 1;.cti-. deals 0it$ sustaining and improving t$e conditions t$at $ave been establis$ed+ Specific problems of maintaining t$e p$"sical conditions of emplo"ees /$ealt$ and safet" measures1 and emplo"ee service programmes are t$e responsibilit" of t$e personnel department HUMAN RESOURCE PLANNING Meaning and definitions of manpo0er planning9 Manpo0er is t$e primar" resource 0it$out 0$ic$ ot$er resources li3e mone"- material- etc+ cannot be put to use+ *ven a full" automatic unit suc$ as an unmanned satellite re6uires manpo0er to e5ecutive it and ma3e furt$er improvement+ #$at is 0$" man learnt t$e use of manpo0er muc$ before $e learnt to use ot$er resources+ Manpo0er planning is an important aspect of personnel management+ %t ma" be defined as t$e strateg" for t$e ac6uisition- utilization- improvement and retention of $uman resources of an enterprise+ Manpo0er planning is basicall" t$e process b" 0$ic$ it is determined $o0 an organisation s$ould more from its current manpo0er position to its desired manpo0er position+ #$us- manpo0er planning is t$e process b" 0$ic$ an organisation ensures t$at it $as t$e rig$t number and 3ind of people at rig$t places at t$e rig$t time- capable of effectivel" and efficientl" completing t$e tas3s t$at 0ill $elp t$e organisatoin to ac$ieve its overall objectives+ Manpo0er planning translates t$e organization2s objectives and plans into number of 0or3ers needed to meet t$ese objectives+ %n simple 0ords- manpo0er planning is a strateg" for procurement- development and allocations and utilization of an organizations $uman resources+

CHARACTERISTICS OF MANPO8ER PLANNING7 Some of t$e major c$aracteristics of manpo0er planning are listed as under9 4 4 4 4 4 4 %t is an ongoing process %t includes t$e planning and development of $uman resources %t is not just forecasting demand and suppl" of $uman resources %t is not a matter concerned 0it$ individual career planning and development+ %t is not a matter concerned 0it$ individual career planning and development+ %t is not just a planning for c$anging organizational structure+

OB#ECTI$ES OF MANPO8ER PLANNING #$e major objectives of manpo0er planning in an organisation are to94 :+ *nsure optimum use of $uman resources currentl" emplo"ed+ ;+ !void unbalances in t$e distribution and allocation of manpo0er+ <+ !ssess or forecast future s3ill re6uirements of t$e organizations overall objectives =+ Provide control measure to ensure availabilit" of necessar" resources 0$en re6uired+ >+ 'ontrol t$e cost aspect of $uman resources @+ Formulate transfer and succession polic"

SIGNIFICANCE OF MANPO8ER PLANNING7 #$e significance of s"stematic and compre$ensive manpo0er planning $as been recognized b" all organizations+ *arlier- t$e management of small organizations $ad t$e common belief t$at t$e" could al0a"s obtain t$e personnel it re6uired 0$enever it needed+ Some of t$e major of significance of manpo0er planning in an organisation are discussed belo09 :+ Manpo0er planning is vital because it $elps in determining t$e personnel needs of t$e organisation+ ;+ %t enable t$e organisation to cope 0it$ c$anges in competitive forces mar3ets- tec$nolog"- product etc+ all of 0$ic$ generate c$anges in job contents- s3ill- demands number and t"pe of personnel+ <+ %t is an essential component of strategic planning+ =+ %t $elps in selection and development of emplo"ees as it ensures t$at ade6uate number of persons are selected 0ell in advance and developed for anticipating openings+ #$is also ensures a smoot$ 0or3ing of t$e organisation+ >+ %t enables t$e organisation to produce personnel 0it$ necessar" 6ualifications- s3ill- 3no0ledge0or3 e5perience and aptitude for 0or3+ @+ %t $elps in finalizing managerial succession plan as a part of t$e replacement process b" providing enoug$ opportunit" for identif"ing and developing managers to move up t$e corporate leader+ A+ Suitable manpo0er planning $elps to ascertain and identif" t$e areas of critical s$ortages of s3illed emplo"ees and enable management to avoid brea3do0n in production process or under utilization of plant capacit" b" ta3ing timel" corrective action+ B+ %t also $elps to identif" t$e surplus manpo0er if an" in t$e organisation+

LIMITATIONS OF MANPO8ER PLANNING7 !lt$oug$ t$ere t$e several benefits and uses of manpo0er planning- "et it is not free from limitations+ (enerall" manpo0er plans suffers from inaccurac" as it is difficult to prepare long range forecast accuratel" c$anges in economic conditions- tec$nolog"- mar3eting conditions and labour force conditions tends to ma3e long range forecasts unreliable+ Ho0ever- t$ere is greater danger in not forecasting at all+ STEPS IN MANPO8ER PLANNING7 )roadl" spea3ing- manpo0er planning in an organisation consists of t$e follo0ing major steps9 :+ !ssessment of current manpo0er re6uirement ;+ Forecast of future manpo0er re6uirement <+ Dra0ing up recruitment plan =+ Designing training and development plan+

MANPO8ER IN$ENTOR6 #$is involves ta3ing an inventor" of t$e personnel to compare 0$at e5ist in stoc3 and 0$at can be e5pected in stoc3 at future dates+ #$is 0ould indicate t$e s$ortfall in terms of organizational e5pansion re6uirements+ #$e inventor" must be supplemented b" appraisal of e5isting performance and assessment of future potential to indicate training and development plans re6uired to ma3e t$e e5isting

suppl" suitable for future needs+ #$e management must also tr" to develop in advance t$e talented emplo"ees to occup" managerial positions in t$e future+ %t cannot rel" upon finding talented manpo0er just 0$en it is needed+ 'urrent s3ill must be properl" anal"zed to dra0 emplo"ment and development programmes+ FORECAST OF FUTURE MANPO8ER RE"UIREMENT #$e second step in manpo0er planning is to forecast or assess t$e manpo0er re6uirement in terms of /6uantit" and 6ualit"1 anticipating t$e future plans and programmes of t$e compan" and translate t$ere into talent and s3ill re6uirements+ )asicall" manpo0er forecast is concerned 0it$ anticipating t$e number of replacements re6uired due to resignation- retirement- dealt- dismissal- transfer and promotion+ Determining t$e compan" manpo0er re6uirement involves t0o projections for eac$ functional area+ :1 #$e incremental number of positions needed as a result of gro0t$+ ;1 Number of vacancies created b" retirement and ruminations+ #$e projection or forecast of manpo0er re6uirement ma" be made b" e5ecutive judgement- part trend0or3 stead" and productivit"+ %n practice t$ese approac$es s$ould be used to supplement eac$ ot$er so t$at t$e degree of accurac" of forecast ma" be increased+ %t 0ould also be desirable to prepare forecasts based on alternative assumptions so t$at if one assumption fails- anot$er ma" be tried+ Fle5ibilit" is essential to meet sudden and unanticipated c$anges+ DRA8ING UP RECRUITMENT PLAN ! realistic recruitment plan for manpo0er is dra0n b" comparing present manpo0er resources 0it$ t$e future re6uirement of manpo0er and ascertaining additional re6uirement of manpo0er+ #$us- it entails anticipating manpo0er problems b" projecting t$e present manpo0er resources into future and comparing t$ese 0it$ t$e forecast of re6uirement to determining t$eir ade6uac" bot$ 6uantitativel" and 6ualitativel"+ DESIGNING TRAINING AND DE$ELOPMENT PLANS 'oncurrentl" 0it$ t$e recruitment plan- manpo0er training and development plan is designed+ #$is is aimed at conditioning t$e manpo0er ac6uisition to t$e organization2s e5acting re6uirements+ Manpo0er becomes a resource onl" 0$en appropriate 3no0ledge- s3ill and attitude are provided to transform t$em into appropriate productive 0or3 force+ #$is transformation is possible t$roug$ training and development+ #$is plan is not onl" necessar" for e5isting manpo0er but also for t$e future ac6uisition of manpo0er in t$e plan period to ac$ieve t$e manpo0er plan targets+ "UANTITATI$E AND "UALITATI$E ASPECTS OF MANPO8ER PLANNING Manpo0er planning problem in an organisation can be discussed 3eeping vie0 its94 i1 Kuantitative and /ii1 Kualitative aspects+

"UANTITATI$E ASPECTS OF MANPO8ER PLANNING (DEMAND ASPECTS) #$is is concerned 0it$ determination of t$e total number of emplo"ees re6uired in an organisatoin+ For proper assessment- t$e planner must $ave t$oroug$ 3no0ledge of t$e compan"2s future production and sales plans because t$e demand for $uman resource s$ould be estimating manpo0er re6uirement in terms of t$e number and c$aracteristics of emplo"ees+ management e5perts $ave suggested various met$ods to assess t$e number of emplo"ees re6uired in an organisation+ Some of t$ese met$ods are discussed belo09 (i) 8-%? L-a/ A.a2'!i!

#$is is concerned 0it$ t$e total volume of 0or3 0$ic$ ma" be anticipated on t$e basis of budgeted production- sales and distribution- administration- researc$ etc+

(ii)

8-%? F-%c A.a2'!i!

#$is involves detailed anal"sis of t$e e5isting 0or3force- rate of absenteeism and vacancies li3el" to be caused b" transfer and promotion- retirement- resignation etc+

(iii)

Ma.a0 & .t #;/0 & .t App%-ac,

%t $as been observed t$at majorit" of Small Scale 8nits do not $ave sound data base for manpo0er information and job anal"sis+ Suc$ organizations resort to management judgement approac$ to determine manpo0er re6uirement+ 8nder t$is met$od- personnel e5ecutives 0$o are 0ell ac6uainted 0it$ t$e 0or3load- efficienc" and abilit" of emplo"ees- t$in3 about t$e future 0or3load and capabilities of emplo"ees and t$en decide on t$e number and t"pes of emplo"ees to be recruited+

(i*)

Stati!tica2 a./ Mat, &atica2 T c,.i@; !

#$e above of anal"sis provide onl" a roug$ appro5imation of t$e number of emplo"ees re6uired+ #$ese tec$ni6ues are suitable onl" for s$ort range demand forecast+ Fong range personnel forecasting is more amenable to statistical and mat$ematical tec$ni6ues+ #$is $as been particularl" true in recent "ears as ne0 mat$ematical tec$ni6ues $ave been developed and $ig$ speed computers ma" be rapidl" anal"ze large amount of personnel planning data+ Some of t$e important statistical and mat$ematical tools for forecasting are discussed as under9 /a1 Ratio and #rend !nal"sis /b1 Finear Regression /c1 *conometric Models

SUPPL6 ASPECTS #$is is concerned 0it$ t$e estimate of suppl" of manpo0er given t$e anal"sis of current resources- and future availabilit"+ Here t$e personnel planner must consider bot$ t$e e5ternal suppl" /emplo"ees available for $ig$er position in t$e organization2s geograp$ic 0or3 force1 and t$e internal suppl" /organization2s current emplo"ees1+ *5ternal suppl" of personnel is important for t0o reasons+ First $e normal attention of emplo"ees t$roug$ voluntar" turnover- retirement illness- deat$ and disc$arge ma" re6uire t$at t$e organisatoin loo3 to emplo"ment agencies- colleges and universities and ot$er sources to replenis$ lost personnel+ Second- organizational gro0t$ t$e diversification re6uire t$e use of e5ternal sources to obtain additional gro0t$ and diversification re6uire t$e use of e5ternal sources to obtain additional numbers and t"pes of emplo"ees+ Planner must be 'ognizant of available sources of emplo"ees+

Some of t$e import met$ods 0$ic$ are used to anticipate manpo0er suppl" are discussed belo09 :+ Mar3o" !nal"sis ;+ Simulation

<+ Rene0al !nal"sis =+ (oal Programming

"UALITATI$E ASPECT OF MANPO8ER PLANNING %n assess t$e 6ualit" of manpo0er re6uired in t$e organisation- various attributes $ave to be ta3en into account suc$ as- 6ualification- e5perience- aptitude etc+ of t$e emplo"ees re6uired b" t$e enterprise+ #$is calls for job anal"sis and design+ ob anal"sis refers to t$e detailed and s"stematic stud" of all elements of a job+ Fi3e tas3 included in it- duties abilities- responsibilities 0or3ing conditions s3ill and 3no0ledge re6uired to perform it- and its relation to ot$er jobs+ !ccording b" Mil30orc$ H )onder"- job anal"sis is a s"stematic process of collecting dail" and ma3ing certain judgement about al of t$e important information related to t$e nature of a specific job+ Results of job anal"sis serve as input for man" location resource activities+ %n t$e opinion of David ! Decenzo and Step$an P+ Robons- job anal"sis is a s"stematic e5ploration of t$e activities 0it$in a job+ %t is t$e basic tec$nical procedure- one t$at is used to define t$e duties and responsibilities and accountabilities of a job+ #$is anal"sis involves compiling a detailed description of tas3s- determining t$e relations$ip of job and e5amining t$e 3no0ledge- 6ualification or emplo"ment standard- accountabilities and ot$er incumbent re6uirements+ %n s$ort 0e can sa" t$at job anal"sis indicates 0$at activities and accountabilities a job entails+ #$ere is no m"ster" about job anal"sis it is just an accurate recording of t$e activities involved+ #$us job anal"sis collect information about specific tas3s or 0$at a person does /! group of tas3s performed b" one person ma3es up a position+ %dentical position ma3e a job and broadl" similar jobs combine into an occupation1+ #OB ANAL6SIS AND #OB E$ALUATION MEANING OF #OB ! job ma" be defined as a position or a group of positions t$at are similar as regards t$e 3ind and content of 0or3+ For a particular job- t$ere ma" be onl" one position in an enterprise as- for e5amplegeneral manager or production manager+ !s against t$is t$ere ma" be a number of positions to perform t$e same job as- for e5ample- foreman- cler3- salesman etc+ %nevitabl"- t$ere are a number of jobs in eac$ enterprise+ %t is t$erefore necessar" to compare t$em vis4 L4vis duties and responsibilities- conditions of 0or3 element of ris3 and $azard and abilities and s3ills re6uired+ Onl" t$en identical jobs can be grouped toget$er and commonl" designated+ #OB ANAL6SIS ob anal"sis deals 0it$ determining t$e c$aracteristics of eac$ job+ &$at are t$e duties and responsibilit" involved in t$e job+ &$at is t$e nature of 0or3 condition under 0$ic$ it is performedM &$at is t$e element of ris3 or $azard involved in its performanceM Fastl"- 0$at are t$e emplo"ment conditions suc$ as remuneration- 0or3ing $ours- opportunities for advancement- associated 0it$ itM )asicall"- t$ere are t$ree aspects to job anal"sis+ #$e" are /a1 identification of eac$ job in terms of duties and responsibilit"- /b1 determination of t$e nature of 0or3 and 0or3 conditions- and /c1 determination of t$e re6uirements as to abilities and s3ills t$at are prescribed for t$e persons $olding it+ PROCESS OF ANAL6SIS First of all necessar" and relevant information is collected in regard to eac$ job+ Suc$ information can be collected from various sources viz+ /a1 Kuestionnaires completed b" job $olders

/b1 Diaries maintained b" job $olders /c1 %nter vie0s 0it$ job4$olders- and /d1 Personal observation AD$ANTAGES OF #OB ANAL6SIS ob anal"sis offers several advantages+ For e5ample9 1. RECRUITMENT AND SELECTION OF PERSONNEL %t $elps in setting out job specification /abilities and s3ills relevant to eac$ job1 and it can serve as t$e basis of recruitment+

3. TRAINING %t $elps in devising suitable training programmes+ #o be able to do a job a man must posses certain s3ills and abilities+ *it$er $e alread" possesses t$ere or ac6uires t$em t$roug$ conscious effort+ )ut in case it is neit$er- be can be made to ac6uire from training+

3. #OB E$ALUATION ! job cannot be properl" evaluated unless its content is 3no0n+ For t$is it is necessar" to carr" out job anal"sis to 3no0 t$e s3ills re6uired to perform eac$ job- $azards involved in performing it- and t$e 0or3 conditions under 0$ic$ it is to be performed+

5. E$ALUATION OF PERFORMANCE ob anal"sis provides t$e basis of objectives appraisal and control of performance+ %t ma3es it possible to 3no0 $o0 far an emplo"ee $as been successful in accomplis$ing t$e tas3s set for $im+

5. PROMOTIONS+ TRANSFERS+ ETC. )ased on job anal"sis effective policies ma" be formulated in regard to promotions and transfers+

A. EMPLO6MENT GUIDANCE ob description- 0$ic$ is carried out on t$e basis of job anal"sis- $elps t$e aspirants in ascertaining t$e jobs for 0$ic$ t$e" $ave t$e necessar" 6ualifications+

B. LABOUR RELATIONS ob anal"sis serves as t$e basis for resolving dis6uiets relating to standards of performance e5pected of 0or3ers+

#OB DESCRIPTION ob description underlines t$e c$aracteristics of eac$ job+ %t serves as t$e basis of selection- promotion of transfer of emplo"ees

ob description is based on job anal"sis+ %t sets out t$e job to be performed- t$e duties and responsibilities associated 0it$ it- abilities- s3ills and training needed to perform it- and t$e 0or3ing conditions under 0$ic$ it is to be performed needed to problem it- and t$e 0or3ing conditions under 0$ic$ it is to be performed+

#-( D !c%ipti-. F%-& 1-% St-% 9 Duties and Responsibilities9

p % :+ Supervise subordinates ;+ %ssue stores items departmental re6uisitions+ against

<+ Maintain orders for fres$ suppliers 0$en necessar" =+ Stoc3 ta3ing >+ Maintain records of issues of stores @+ Focal purc$ases A+ Return defective materials to suppliers B+ Neep store neat and tid" C+ Operate station 0agon and private carrier 0$en re6uired :D+ Operate station 0agon and private carrier 0$en re6uired !ccountable to9 !ut$orit" to command9 Factor" Manager > Store cler3s- :; Fabourers

)riefl"- job description generall" provides information in regard to t$e follo0ing9 :+ %dentification of job- i+e+ job4title- and place 0$ere it is to be performed ;+ Statement of duties and responsibilities <+ )rea3do0n of operation to be performed and nature of $azards involved+ 8nder t$is- information as regards t$e time and $ours of 0or3- and e5tent of speed and accurac" in performance- is given+ !lso- a mention is made of $azards involved in performing t$e 0or3- suc$ as p$"sical and mental strain- e5posure to $eat- moisture- dust- fumes- etc+ =+ ! brief description of t$e materials- tools and e6uipment re6uired for performing t$e job+ >+ Remuneration- i+e+- description of t$e rate of 0ages- and allo0ances and met$od of pa"ment as also ot$er benefits suc$ as bonus- provided fund- gratuit"- pension- leave rules- insurance and so on+ @+ Nature of e5perience and training re6uired A+ Opportunities for advancement B+ !ge minimum and ma5imum C+ P$"sical specifications- suc$ as $eig$t- 0eig$t- e"e4sig$t- $earing etc+

:D+ Se5 0$et$er eit$er se5 preferred or restricted ::+ Proficienc" in regarding and 0riting different languages :;+ Special 6ualities- i+e+ appearance- manners- initiative- leaders$ip- mental alertness- emotional adjustment- capacit" to mi5 up 0it$ people and so on+ %t is not necessar" to give information relating to all t$ese points in eac$ job description+

#OB DESCRIPTION ob specification- 0$ic$ deals 0it$ t$e re6uirements soug$t in t$e candidate for a given job- is often a part of job description itself+ )ut sometimes a ma" be carried out separatel"+

'ompleted ob Specification From for Store Neeper S,-;2/ M-!t *ducation4 )ac$elor2s degree in 'ommerce !ttainments4 Previous store 3eeping e5perience for < "ears in te5tile industr" %ntelligence4 (ood common sense+ Special !ptitudes4 'lear $and arit$metic 0ritinggood at simple !rrange common sense Store 3eeping e5perience in an" industr" S,-;2/ )ac$elor2s degree in an" discipline

Neat and order2s 0a" of 0or3ing I.t % !t! Disposition4 Friendl"- $elped and co4operative #actful in $andling staff+ Honest and sincere P$"sical (ood $ealt$ (ood e"e sig$t !verage p$"sical strengt$ !ge4 Minimum ;> Ma5imum => ;; >D P%actica2

ob specification is based on jobs anal"sis + #$e emp$asis $ere is on t$e minimum acceptable + it $elps in selection and training of personnel and also in carr"ing evaluation+

#OB E$ALUATION ob evaluation measures t$e 0ort$ of a job in terms of mone"+ %ts object is to ensure t$at a man is paid according to t$e job done b" $im+ For e5ample- 0$en 0e sa" t$at t$e principal of a college deserves to be paid more t$an a lecturer- or t$at a pilot oug$t to receive a fatter pa" pac3 t$an a bus driver- t$e basis of our statement is t$e broad comparison 0e ma3e in out mids bet0een t$e re6uirements and $azards involved in eac$ job+ Onl" on evaluation- t$is is done on a more scientific and rational basis+ ob evaluation see3s to gdfg t$e ma5imum and redfgd re6uirements of eac$ job+ #$en- on t$e basis of relative re6uirements- 0ere rate for eac$ job is fi5ed+

METHODS OF #OB E$ALUATION :+ Ra.?i.0 S'!t & 7 8nder it- t$e jobs are ran3ed in t$e order of levels of responsibilities and duties or t$eir importance+ &age rates for eac$ job are t$en determined accordingl"+ #$oug$ ver" simple- t$is met$od can be reliable onl" 0$ere t$ere is 0ide similarit" bet0een t$e jobs evaluated+ *it$er t$e jobs s$ould belong to t$e same class /e+g+ mac$ine operators and t$eir assistants1 or to t$e same department /e+g+ senior or junior cler3s1

;+ C2a!!i1icati-. & t,-/7 %n t$e case of t$is met$od- first of all- grades are defined for re6uirements t$at are common to various jobs+ #$e- on t$e basis of comparison bet0een re6uirements as regards eac$- jobs are placed in appropriate grades+ %n (overnment departments- For e5ample- personnel are classified into class one- class t0o- class t$ree and class four+ *ac$ class contains a 0ide variet" of jobs and "et on t$e basis of re6uirements in t$e case of eac$ job- t$ere is $ardl" an" difference bet0een t$em+

<+ P-i.t! !'!t &7 8nder t$is met$od- re6uirements relevant to eac$ job are properl" anal"zed and 6ualified+ For t$e sa3e of precision- re6uirements as regards a job are sub4divided into degrees+ #$en for eac$ degree- certain points are assigned+ t$e total number of points given to a job- determine its relative position in t$e job structure- t$e points being assigned 3eeping in mind t$e nature of t$e job+ For factor" and office jobs- for e5ample t$ere are different s"stems of point assignment+ #$e re6uirements as regards na" job ma" include items suc$ as education- training- e5periencep$"sical c$aracteristics- duties- responsibilities and so on+ *ac$ of t$ese items ma" be furt$er sub4 divided for assignment of points+ *ducation- for e5ample- ma" be sub4divided into researc$ degreemaster2s degree- graduation- $ig$ sc$ool and so on+ #$us- if a job re6uires a master2s degree for its $older- it ma" be given =D points- for a bec$elor2s degree it ma" be given <> points- and so on+ #$e same met$od ma" be repeated in regard to eac$ of t$e re6uirements- and t$e total of t$e points

allocated to t$e job ma" t$en be compared 0it$ t$ose given to ot$er jobs to determine its position in t$e structure+

=+ Fact-% c-&pa%i!-.7 %t is based on t$e point s"stem+ #$e difference is t$at $ere first certain 3e" jobs are c$osen and t$e" are allocated points for eac$ of t$e factors present in t$em+ )ased on t$is- 0age rates for eac$ of t$e 3e" jobs are fi5ed+ #$e point allocated and t$e 0age rates determined for t$e 3e" jobs serve as t$e basis of referenced for gradation of t$e ot$er jobs+

AD$ANTAGES OF #OB E$ALUATION :+ O() cti*it'7 %t is based on job anal"sis and $ence t$e re0ard for a job is directl" related to t$e job content+ #$ere is little scope for appl"ing subjective standards in assessing t$e 0ort$ of a job+ ;+ R 2ia(i2it'7 %t provides 0ell4defined and s"stematic met$ods of measurement+ For t$is reason- it is un6uestioningl" accepted b" bot$ 0or3ers and management+

DISAD$ANTAGES 1. U.i1-%&it' i. pa' )ecause job evaluation see3s to determine t$e 0ort$ of a job rat$er t$an t$e person occup"ing it- it brings about uniformit" in 0ages of all emplo"ees belonging to a particular categor"+ For t$is reason 0or3ers- particularl" t$ose 0$o are above average- ma" get not vie0 it favourabl"+

3. Lac? -1 c-&p2 t acc;%ac' %t is difficult to determine 0it$ complete accurac" t$e relative 0ort$ of t$e different factors involved in na" job- particularl" so if t$e factors are of a $ig$l" tec$nical nature+ 3. U.% a2i!tic ob evaluation is based on t$e assumption t$at 0age rates can be related to t$e 0ort$ of a given job+ %t convenientl" ignores t$e fact t$at conditions in t$e labour mar3et $ave a decisive influence it t$e determination of 0ages rates+

5. C-&p2icat / #$e met$ods follo0ed for carr"ing out job evaluation ma" not be sufficientl" understand b" 0or3ers+ %n t$e event- t$e" ma" get suspicious about t$e emplo"er2s motives+

LESSON A RECRUITMENT AND SELECTION PROCESS

RECRUITMENT Recruitment forms t$e first stage in t$e process 0$ic$ continues 0it$ selection and ceases 0it$ t$e placement of t$e candidate+ %t is t$e ne5t step in t$e procurement function- t$e first being t$e man po0er planning+ Recruitment ma3es it possible to ac6uire t$e number and t"pes of people necessar" to ensure t$e continue operation of t$e organisation+ Recruiting is t$e discovering of potential applications for actual or anticipate organizational vacancies+ %n ot$er 0ords- it is a 7lin3ing activit"2 bringing toget$er t$ose 0it$ jobs and t$ose see3ing jobs+ Recruitment $as been regarded as t$e most important function of personnel administration- because unless t$e rig$t t"pe of people are $ired- even t$e best plans- organisation c$arts and control s"stems 0ould not be muc$ good+ Flippo vie0s recruitment bot$ as 7positive2 and 7negative2 activit"+ He sa"s- ,%t is a process of searc$ing for prospective emplo"ees and stimulating and encouraging t$em to suppl" for jobs to increase t$e 7$iring ratio2- i+e+ t$e number of applicants for a job+ Selection- on t$e ot$er $and tends to be negative because it rejects a good member of t$ose 0$o appl"- leaving onl" t$e best to be $ired+.

FACTORS AFFECTING RECRUITMENT !ll organizations- 0$et$er large of small- do engage in recruiting activit"- t$oug$ not to t$e same e5tent+ #$is differs 0it$ /i1 t$e size of t$e organisation+ /ii1 #$e emplo"ment conditions in t$e communit" 0$ere t$e organisation is located+ /iii1 #$e effects of past recruiting efforts 0$ic$ s$o0 t$e organisation2s abilit" to locate and 3eep good performing people? /iv1 &or3ing conditions and salar" and benefit pac3age offered b" t$e organisation 0$ic$ ma" influence turnover and necessitate future recruiting? /v1 #$e rate of gro0t$ of organisation /vi1 #$e level of seasonalit" of operations and future e5pansion and production programmes- and /vii1'ultural- economic and legal- etc+

CONSTRAINTS LIMIT THE FREEDOM OF MANAGER TO RECRUIT :+ #$e image of t$e organisation ;+ #$e unattractive job <+ %ntegral organizational policies =+ 8nion re6uirements can also restrict recruiting sources+

>+ (overnments influences

STEPS ON RECRUITMENT PROCESS

Personnel Human Resources Planning Recruiting Needed Personal Selecting Kualified Personnel Place Ne0 *mplo"ees on obs

Developing Sources of Potential *mplo"ees

Searc$ for Potential *mplo"ees

*valuating Recruiting effectiveness

%nternal sources

Personnel Researc$

8pgrading on same position

ob Posting

#ransferring to ne0 job

Promoting to $ig$er responsibilities

*5ternal sources

*mplo"ee referrals

*valuating for selection

!dvertising

Scouting

RECRUITMENT POLIC6 ! 7recruitment polic". in its broadest sense- ,involves a commitment b" t$e emplo"er to suc$ general principles as9

/:1 #o find and emplo" t$e best 6ualified persons for eac$ job9 /;1 #o retain t$e best and more promising of t$ose $ired+ /<1 #o offer promising opportunities for life4time 0or3ing careers? and /=1 #o provide programmes and facilities for personnel gro0t$ on t$e job+

!ccording to Goder- ,t$e recruitment polic" is concerned 0it$ 6uantit" and 6ualifications /viz- and K: and K;1 of manpo0er. %t establis$es brad guides lines for t$e staffing process+ (enerall"- t$e follo0ing factors are involved in a recruitment polic"+ :+ #o carefull" observe t$e letter and spirit of t$e relevant public polic" on $iring and- on t$e 0$oleemplo"ment relations$ip+ ;+ #o provide individual emplo"ees 0it$ t$e ma5imum of emplo"ment securit"- avoiding fre6uent la"4 off or lost time? <+ #o provide eac$ emplo"ee 0it$ an open road and encouragement in t$e continuing development of $is talents and s3ills+ =+ #o assure eac$ emplo"ee of t$e organisatoin interest in $is personal goals and emplo"ment objectives+ >+ #o assure emplo"ees of fairness in all emplo"ment relations$ips- including promotions and transfers+ @+ #o avoid cli6ues 0$ic$ ma" develop 0$en several members of t$e same $ouse$old or communit" are emplo"ed in t$e organisatoin+ A+ #o provide emplo"ment in jobs 0$ic$ are engineered to meet t$e 6ualifications of $andicapped 0or3ers and minorit" and B+ #o encourage one or more strong- effective- responsible trade unions among t$e emplo"ees+

PRERE"UISITES OF A GOOD RECRUITMENT POLIC6 #$e recruitment polic" of an organisation must satisf" t$e follo0ing conditions+9 /:1 %t s$ould be in conformit" 0it$ its general personnel policies94 /;1 %t 0ould be fle5ible enoug$ to meet t$e c$anging needs of an organisation+ /<1 %t s$ould be so designed as to ensure emplo"ment opportunities for its emplo"ees on a long term basis so t$at t$e goals of t$e organisation s$ould be ac$ievable and it s$ould develop t$e potentialities of emplo"ees+ /=1 %t s$ould matc$ t$e 6ualities of emplo"ees 0it$ t$e re6uirements of t$e 0or3 for 0$ic$ t$e" are emplo"ed- and />1 %t s$ould $ig$lig$t t$e necessit" of establis$ing job anal"sis

#$e advantages of centralization of recruitment and selection are9 /:1 %t reduces t$e administrative cost associated 0it$ selection b" consolidating all activit" in a single office /;1 %t relieves line officers of t$e details- involved in $iring 0or3ers- 0$ic$ is common under a decentralized plan+ /<1 %t tends to ma3e t$e selection of 0or3ers scientific /=1 %t ma3es possible t$e development of a centralized manpo0er poor in a compan"? />1 %t provides a 0ider opportunit" for placing an applicant in several departments of t$e compan"+ /@1 %t tends to reduce favoritism as a basis for selection+

#$is centralized department is generall" 3no0n as t$e *mplo"ee office- or t$e Recruitment sections+ #$e staff personnel is attac$ed to it+ #$is enables specialists to concentrate upon t$e recruitment function- and soon t$e" became ver" efficient in t$e use of various recruitment tec$ni6ues+ #$is office s$ould be properl" e6uipped 0it$ furniture+ %ts 0aiting room s$ould be room"- clean and 0ell ventilated- it s$ould $ave lig$ting facilities and drin3ing 0ater and it s$ould be comfortable+ #$is room s$ould also $ave a table or a counter so t$at candidate ma" fill in t$eir application blan3s convenientl"+ %t is desirable t$at personnel records be filled in a room accessible to t$e intervie0er

#$is office is concerned 0it$ t$e follo0ing functions /:1 *stablis$ing emplo"ment standards /;1 Ma3ing mutual contact 0it$ prospective emplo"ees /<1 'onducting final intervie0 /=1 #esting />1 'onducting p$"sical e5amination /@1 Filling out necessar" forms and records 3eeping /A1 %ntroducing t$e emplo"ee to $is superior- and /B1 Follo0ing up t$e emplo"ee

SOURCES OF RECRUITMENT )efore an organization activit" begins recruiting applicants- it s$ould consider t$e most li3el" source of t$e t"pe of emplo"ee it needs+ Some companies tr" to develop ne0 sources- 0$ile most onl" tr" to tac3le t$e e5isting sources t$e" $ave+ #$ese sources accordingl"- ma" be termed as internal and e5ternal+

INTERNAL SOURCES %nternal sources are t$e most obvious sources+ #$ese include personnel alread" on t$e pa"roll of an organisation- i+e+ its present 0or3ing coffee+ &$enever an" vacanc" occurs- somebod" from 0it$in t$e organisation is upgraded- transferred - promoted or sometimes demoted+ #$us source also in includes

personnel 0$ere once on t$e pa"4roll of t$e compan" but 0$o plan to return or 0$om t$e compan" 0ould li3e to re4$ire- suc$ as t$ose on leave of absence t$ose 0$o 6uit voluntaril"- or t$ose on production la"4offs+

M %it 7 #$e use of an internal source $as some merits+ /:1 %t improves t$e morale of emplo"ees- for t$e" are assured of t$e fact t$at t$e" 0ould be preferred over outsiders 0$en vacancies occur+ /;1 #$e emplo"er is in a better position to evaluate t$ose presentl" emplo"ed t$an outside candidates+ #$is is because of t$e compan" maintains a record of t$e progress- e5perience and service of its emplo"ees+ /<1 %t promotes ro"alt" among t$e emplo"ees- for it gives t$em a sense of job securit" and opportunities for advancement+ /=1 !s t$e persons in t$e emplo"ment of t$e compan" are full" a0are of- and 0ell ac6uainted 0it$ its policies and 3no0 its operating procedures- t$e" re6uire little training- and t$e c$ances are t$at t$e" 0ould sta" longer in t$e emplo"ment of t$e organisatoin t$an a ne0 outsider 0ould+ />1 #$e" are tried people and can- t$erefore- t$e relied upon /@1 %t is less costl" t$an going outside to recruit

D & %it!7 Ho0ever- t$is s"stem suffers from certain defects as 0ell9 /:1 %t often leads to inbreeding- and discourages ne0 blood from entering an organisation+ /;1 #$ere are possibilities t$at internal sources ma" ,dr"4up. and it ma" be difficult to find t$e re6uisite personnel from 0it$in an organisation+ /<1 Since t$e learner does not 3no0 more t$an t$e lecturer- no innovations 0ort$ t$e name can be made+ #$erefore- on jobs 0$ic$ re6uire original t$in3ing /suc$ as advertising- st"le- designing and basic researc$1- t$is practice is not follo0ed+ /=1 !s promotion is based on seniorit"- t$e danger is t$at reall" capable $ands ma" not be c$osen+ #$e li3e and disli3es of t$e management ma" also pla" an important role in t$e selection of personnel

E4TERNAL SOURCES #$ese sources lie outside t$e organisation+ #$e" usuall" include9 /:1 Ne0 entrants to t$e labour force- i+e+- "oung- mostl" ine5perienced potential emplo"ees- t$e college students? /;1 #$e unemplo"ed 0it$ a 0ide range of s3ills and abilities+ /<1 Retired e5perienced persons suc$ as mac$anics- mac$inists- 0elders- accountants+ /=1 Ot$ers not in t$e labour force- suc$ as married 0omen and persons from minorit" groups+ M %it!7 /i1 *5ternal sources provide t$e re6uisite t"pe of personnel for an organisation- $aving s3ill- training and education upto t$e re6uired standard

/ii1 Since persons are recruited from a large mar3et- t$e best selection can be made 0it$out an" distinctions of caste- se5 or colour/iii1 %n t$e long run- t$is source proves economical because potential emplo"ment do not need e5tra entraining for t$eir jobs+

D & %it!7 Ho0ever- t$is s"stem suffers from 0$at is called 7brain drain.- especiall" 0$en e5perienced persons are raided or $unted b" sister concerns+

SELECTION MEANING Selection of candidates begins after completion of t$e recruitment process+ %n ot$er 0ords- onl" after an ade6uate number of applications $ave been secured t$roug$ different sources of recruitment internal and E or e5ternal t$at t$e process of selection begins+ Selection involves a careful screening and testing of candidate 0$o $ave put in t$eir applications for a job in t$e enterprise+ #$is is necessar" for ; reasons? first- man" of t$e applicants ma" not reall" be suitable for emplo"ment in t$e enterprise? secondl"- even 0$ere all applicants are dul" 6ualified and e5perienced t$e enterprise ma" not $ave ade6uate number of vacancies to accommodate all of t$em+

SELECTION PROCEDURE Obviousl"- t$ere can be no standard procedure to select different 3inds of personnel+ Selection procedure differs from job to job- and from enterprises t$e enterprise+ %n some cases- t$e selection procedure ma" be simple+ Onl" applicants ma" $ave to be sent to t$e supervisor or foreman- under 0$om t$e vacanc" e5ists for approval b" $im+ )ut in t$e case of important positions- t$e selection procedure ma" be ver" complicated and time consunning+ )roadl"- t$e selection procedure consists of several stages- important among 0$ic$ are as follo0s9 :+ Receipt and Scrutin" of !pplications ;+ Preliminar" %ntervie0 <+ Filling in of )lan3 !pplication Form =+ #ests >+ %ntervie0s @+ '$ec3ing of References A+ Preliminar" and Final Selection B+ Medical *5amination C+ Placement

Sta0 ! i. t, S 2 cti-. P%-c /;%

P$"sicall" unfit for unfavorable general impression

8nfavorable #est Performance

8nfavorable Second %mpression

8nfavorable Personnel Data

Reception of !pplicants

Preliminar" %ntervie0

!pplication Forms

#ests

8nfavorable Previous Histor" %ntervie0 %nvestigation of Previous Histor"

&arning Fist

Preliminar" Selection in Personnel Dept+

Nature Decision P$"sicall" 8nfit Decision

Final Selection b" Foreman or Supervisor

Medical #est

Placement

RECEIPT AND SCRUTIN6 OF APPLICATIONS *ver" person 0$o applies for a job in an enterprise ma" not possess t$e necessar" 6ualifications or e5perience for it candidates 0it$ insufficient 6ualifications or e5perience s$ould t$erefore be eliminated from t$e list of t$ose 0$o $ave to be called for preliminar" intervie0 %f suc$ 0eeding out is not done- all applicants including t$ose not $aving t$e necessar" 6ualifications and e5perience 0ould $ave to be called for t$e preliminar" intervie0+ #$at 0ould onl" mean 0aste of time and mone" for bot$ t$e enterprise and t$e candidates+ Ho0ever- propriet" demands t$at t$e applicants 0$ose applications are not to be considered be informed about t$e reasons for t$e same+

1. PRELIMINAR6 INTER$IE8 #$e object of a preliminar" intervie0 is to see 0$et$er t$e applicant appears to be p$"sicall" and mentall" suitable for t$e job+ Kuestions put to a candidate during suc$ an intervie0 are of a general and definitive nature- mostl" dealing 0it$ $is 6ualifications- e5perience- interests- age residence etc+ some emplo"ees do not even do t$is+ #$e" call t$e candidates onl" to seen and size t$em up+ For t$is reason preliminar" intervie0 of a candidate does not ta3e muc$ time+ 'andidates 0$o pass t$e preliminar" intervie0 are as3ed to fill up a blan3 application form especiall" designed to elicit t$e re6uisite information about t$e candidate+

3. BLAN9 APPLICATIONS FORMS #$ere are different application forms for different jobs- for t$e simple reason t$at different 6ualifications and s3ills are re6uired for different jobs+ )ut to serve t$e purpose for 0$ic$ it is meant an application forms s$ould conform to t$e follo0ing re6uirements+ :+ )revit" ;+ Relevance

AD$ANTAGES /:1 %nstant test device /;1 !nd to s$" and slo0 candidates /<1 !id to building confidence among candidates /=1 )asis to t$e main intervie0 />1 !nd to preparation of 0aiting list 3. TESTS #ests serves as an important device in t$e process of selection+ #$ese are aimed at measuring suc$ s3ills and abilities in a 0or3er 0$ic$ could $elp $im in performing t$e job assigned to $im based on $is competence #ests ma" be of t0o t"pes- viz+/a1 Proficienc" tests? and /b1 !ptitude tests

Proficienc" tests see3 to measure t$e s3ills and abilities 0$ic$ t$e candidate alread" possesses at t$e time of t$e tests+ ,#rade tests or ,!c$ievement tests. are e5amples of proficienc" tests+ #$e" determine 0$et$er t$e claims made b" t$e candidate about $is s3ills and abilities are borne out b" $is actual rest performance+ !ptitude tests measure t$e s3ills and abilities 0$ic$ t$e candidate apparentl" $as t$e potential to develop later+ %n ot$er 0ords- t$ese rests assess $is potential for performing a certain job in future+ #$e main aim $ere is to see if $e $as t$e capacit" and proper bent of mind to ac6uire t$e necessar" abilities and s3ills to $andle $is job 0ell+ ,Personalit" tests. and ,interests tests. are some of t$e e5amples of aptitude tests+
9i./ -1 T !t!

Proficienc" #est

!ptitude #ests

#rade or !c$ievement #ests

De5terit" #ests

%ntelligence

Personalit"'$aracter or !ttitude #ess

Movement #ests

%nterest #ests

PROFICIENC6 TESTS :+ T%a/ -% Ac,i * & .t T !t!7 #$e" aim at measuring t$e 3no0ledge and proficienc" 0$ic$ $ave alread" been ac$ieved b" a candidate in $is field+ ;+ D :t %it' T !t!7 #$e object of t$ese tests is to see $o0 6uic3l" and efficientl" a candidate uses $is $ands and fingers to perform t$e assigned job+

APTITUDE TESTS :+ I.t 22i0 .c T !t!7 #$e" usuall" consists of a long list of 6uestions to be ans0ered and problems to be solved 0it$in a specified time+ #$e number of 6uestions ans0ered correctl" 0it$in a specified time indicates t$e candidate2s %K /%ntelligence Kuotient1 ;+ P %!-.a2it'+ C,a%act % -% Attit;/ T !t! 7 #$e" measure t$e non4intellectual traits of a candidate suc$ as $is abilit" to mi5 up 0it$ people- interact 0it$ t$em positivel" and to motivate $is colleagues and subordinates+ Kuestions to test a candidate on t$eir count ma" be as follo0s9 ,%f "ou see a t$eif running a0a" a lad"2s purse- 0ould "ou /a1 ,'$ase t$e t$ief.M /b1 S$out for $elpM /c1 Foo3 t$e ot$er 0a"M or /d1 !dvise t$e lad" not to carr" a purse in futureM

<+ M-* & .t T !t!7 #$e" see3 to measure t$e speed and precision of movement in a candidate+ =+ I.t % !t T !t!7 #$e object of t$ese tests is to measure a candidate2s interest in a particular 3ind of 0or3+ On t$e basis of an interest test- it becomes eas" to assign to eac$ person t$e job for 0$ic$ $e $as t$e greatest li3ing so t$at $e derives ma5imum job satisfaction and is able to contribute $is utmost to t$e enterprise+ C,a%act %i!tic! -1 a G--/ T !t :+ Relevance ;+ 'onsistenc" <+ Suitabilit" =+ Standardization A/*a.ta0 ! :+ !ssessment of suitabilit" of candidates ;+ Jerification of facts <+ Objective assessment =+ *stablis$ing of standards Di!a/*a.ta0 ! :+ 8nreliable ;+ Fiable to abuse <+ 8nfair to some =+ Fear of e5posure

>+ %ntervie0s !n intervie0 is a formal consultation to evaluate t$e aptitude- training etc+- of a prospective emplo"ee+ %t is a ,face to face.- observational and personal appraisal met$od. to evaluate a candidate for a job+ %n an" intervie0- t$e intervie0er is in a dominant position+ For if bot$ t$e intervie0er and t$e intervie0ee $ave t$e same status and role- it 0ill be more of a meeting- rat$er t$an an intervie0+

%n an" selection process- t$ere are t0o 3inds of intervie0s4 preliminar" H final+ Preliminar" intervie0- as alread" discussed- is in t$e nature of 0eeding out t$ose candidates 0$o- for reasons of ill4$ealt$- old age- lac3 of re6uired 6ualifications- training- or e5perience- are unsuitable for emplo"ment+

!s for t$e final intervie0- it is generall" $eld in t0o stages+ First- an official of t$e personnel department ma3es a t$roug$ and compre$ensive appraisal of t$e candidates t$ose emerging successfull" from t$is are sent to t$e line /functional1 department 0$ic$ $ad originall" made t$e re6uisition for additional $ands+ &$ere final intervie0 is so divided in ; stages- selection of a candidate is made after $e $as successfull" cleared t$e second stage+

9INDS OF INTER$IE8 :+ Direct %ntervie0 ;+ %ndirect %ntervie0 <+ Patterned %ntervie0 =+ Stress %ntervie0 >+ S"stematic- %n4dept$ %ntervie0 @+ )oard or Panel %ntervie0 A+ (roup %ntervie0

PROCEDURE FOR AN INTER$IE8 #o ma3e it effective- an intervie0 s$ould be properl" planned and effectivel" conducted+ (enerall"- t$e follo0ing steps are follo0ed to t$is end+

:+ R *i < -1 (ac?0%-;./ i.1-%&ati-.7 )efore proceeding to intervie0 a candidate- it is advisable to collect and co4relate all relevant information about $im as also about t$e job for 0$ic$ $e is to be intervie0ed+ ;+ P% pa%ati-. -1 @; !ti-. p2a.7 #$e ne5t t$ing is to prepare a 6uestion plan- particularl" if t$e intervie0er is not sufficientl" e5perienced+ !s a 6uestion is put to t$e candidate and ans0ered b" $im- it s$ould be cross4mar3ed and t$en t$e ne5t 6uestion s$ould be ta3en up and so on+ <+ P;tti.0 t, ca./i/at t- a! 7 For most candidates- undergoing an intervie0 means considerable mental and emotional strain+ )ut displa" of proper understanding and s"mpat$" on t$e part of t$e intervie0er ma" considerabl" relieve suc$ tension+ #o t$is end- t$e intervie0 s$ould be strictl" a privet affair 0$ere no one ot$er t$an t$e intervie0er and t$e candidate s$ould be present+ !lso- t$e candidate s$ould be provided all necessar" facilities and comforts so as to put $im at ease 0it$ $imself+ Moreover- t$e intervie0er s$ould patientl" listen to t$e ans0ers given b" t$e candidate and not pose $imself as a superior being causing interruptions ever" no0 and t$en- or raising $is e"e4bro0s or pouting $is lips ever" time t$e candidate falters or fumbles+ =+ Dra0ing out t$e best in t$e candidate9 Different candidates react differentl" to 6uestions put to t$em during an intervie0+ %t is- t$erefore- for t$e intervie0er to decide $o0 best to tac3le eac$ candidate so t$at $e is enable to give out t$e best in $im+ >+ 'oncluding t$e intervie09 !fter t$e intervie0 is over and t$e candidate $as left t$e room- t$e intervie0er s$ould 6uic3l" glance t$roug$ $is notes and bring to mind $is impressions about t$e candidate so as to ma3e a provisional assessment of $is performance+ Onl" after t$is t$e ne5t candidate s$ould be called in+ A. CHEC9ING REFERENCES ! candidate is appl"ing for a job in an enterprise is usuall" as3ed to provide some reference- e+g+ names of persons to 0$om in6uires as to $is educational bac3ground- s3ills e5perience- c$aracter or

abilit"- could be addressed+ ! letter of recommendation or statement of t$e 6ualifications and 6ualities of t$e candidate given b" someone familiar to $im- is also called a reference+ B. PRELIMINAR6 AND FINAL SELECTION 8p to t$e stage of c$ec3ing of reference- t$e preliminar" selection process is $andled b" staff e5ecutives+ From t$ere on0ards- t$e line management ta3es over+ )ecause t$e re6uisition for additional emplo"ers is made b" line e5ecutives and because it is t$eir responsibilit" to order and control performance of t$en subordinates- it is onl" proper t$at t$e" s$ould also $ave t$e rig$t to ma3e t$e final selection of t$eir subordinates+ %f t$e line managers concerned is a supervisor or a foreman- $e ma" select an emplo"ee after assessing $is one t$e job performance+ #o t$is end- $e ma" give t$e emplo"ee on t$e job test+ %f an emplo"ee2s performance is not up to t$e mar3- $e ma" be 3ept as an apprentice or probationer for some time+ %f $e is found unsuitable for one job- $e ma" be sent over to anot$er and- if $e is unfit t$ere too- to "et anot$er+ )ut normall" no emplo"ees is rejected at t$is stage+

C. MEDICAL E4AMINATION For t$e jobs t$at prescribe certain p$"sical standards as to $eig$t- 0eig$t- e"esig$t- $earing- etc+ a medical c$ec34up prior to t$e placement of t$e candidate becomes necessar"+ Selection in t$e armed forces or civil services- for e5ample- is subject to t$e candidate clearing $is medical e5amination+

%n t$e most of t$e private concerns too- candidates ot$er0ise found suitable are re6uired to face a medical test+ )ut it needs to be remembered t$at medical e5amination is an aid to selecting emplo"ees 0$o- besides fulfilling t$e re6uirements as to abilities and s3ills- also posses necessar" p$"sical c$aracteristics+ %n ot$er 0ords- t$ese s$ould not be used to 3eep out certain individuals+

D. PLACEMENT AND ORIENTATION *ven 0$en a person $as been finall" selected for a job- t$e curtain does not come do0n on t$e selection process+ #$e last act in t$e pla" still remains9 t$at of placement of t$e person into $is ne0 job and of $is orientation to t$e organizational environment+

For t$is purpose- it is necessar" to give t$e ne0 man a cop" of t$e rules policies and procedures to be follo0ed b" $im+ !lso- $e s$ould be provided 0it$ complete description of $is job+ #$is is not all- t$e ne0 emplo"ee s$ould also be told about $is aut$orit" and responsibilit"+ &$o s$all be $is immediate and ultimate bossM &$o are t$e people 0$om $e can commandM !nd so on+

Furt$er- if t$e enterprise is big enoug$- t$e ne0 emplo"ee could feel lost in t$e midst of $is co40or3ers most of 0$om ma" be strangers to $im+ !lso- $e ma" not 3no0 muc$ about t$e enterprise or $is superiors and subordinates+ Sometimes even location of 0or3 place- canteen- lavator"- or e5it gatema" create problems for $im+ #o overcome suc$ problems faced b" ne0 emplo"ees- most enterprises $ave formal orientation programmes+ 8nder t$ese- ne0 emplo"ees are ta3en round t$e offices and plant- provided literature

giving t$e necessar" information about t$e enterprise- and given lecturers of s$o0n films to add to t$eir 3no0ledge about t$e activities and sc$emes underta3en b" t$e enterprise+ %n some enterprise- all t$is is done informall"- b" attac$ing ne0 emplo"ees to t$eir senior colleagues for briefing on all suc$ matters+

)ut 0$et$er t$is is done formall" or informall"- correct placement and orientation of a ne0 emplo"ee $elps $im in getting ac6uainted 0it$ t$e enterprise in a smoot$ manner+

LESSON B TRAINING AND DE$ELOPMENT EMPLO6EE TRAINING INTRODUCTION *ver" organisation needs to $ave trained and e5perienced people to perform t$e activities t$at $ave to be done+ %f t$e current or potential job occupant can meet t$is re6uirement- training is not important+ )ut 0$en t$is is not t$e case- it is necessar" to raise t$e s3ill levels and increase t$e versatilit" and adaptabilit" of emplo"ees+

THREE TERMS7 TRAINING+ DE$ELOPMENT AND EDUCATION T%ai.i.0 #raining is a process of learning a se6uence of programmed be$aviour+ %t is application of 3no0ledge+ %t gives people an a0areness of t$e rules- and procedures to guide t$eir be$aviour+ %t attempts to improve t$eir performance on t$e current job or prepare t$em for an intended job+

D * 2-p& .t Development is a related process+ %t covers not onl" t$ose activities 0$ic$ improve job performance but also t$ose 0$ic$ bring about gro0t$ of t$e personalit"? $elp individuals in t$e progress to0ards maturit" and actualization of t$eir potential capacities so t$at t$e" become not onl" good emplo"ees but better men and 0omen+ %n organizational terms- it is intended to e6uip persons to earn promotion and $old greater responsibilit"+ #raining a person for a bigger and $ig$er job is development+ !nd t$is ma" 0ell include not onl" imparting specific s3ills and 3no0ledge but also including personalit" and mental attitudes+ %n t$is sense- development is not muc$ different from education+

E/;cati-. *ducation is t$e understanding and interpretation of 3no0ledge+ %t does not provide definitive ans0ersbut rat$er it develops a logical and rational mind t$at can determine relations$ips among t$e pertinent variables and t$ereb" understand p$enomena+ *ducation must impart 6ualities of mind and c$aracterand understanding of basic principles and develop t$e capabilities of anal"sis- s"nt$esis and objectivit"+ 8suall"- education is outside t$e scope or an organization2s functions+ %t involves a range of s3ills and e5pertise 0$ic$ can be provided onl" b" education institutions+ !n organisatoin can and does ma3e use of suc$ institutions in order to support and supplement its internal training and development efforts+

DISTINCTION BET8EEN TRAINING AND DE$ELOPMENT ,#raining is s$ort4term process utilizing a s"stematic and organized procedure b" 0$ic$ non4 managerial personnel learn tec$nical 3no0ledge and s3ills for a definite purpose+.

,Development is a long4term educational process utilizing a s"stematic and organized procedure b" 0$ic$ managerial personnel learn conceptual and t$eoretical 3no0ledge for general purpose.+

,#raining refers onl" to instruction in tec$nical and mec$anical operations- 0$ile ,development. refers to p$ilosop$ical and t$eoretical educational concepts+ #raining is designed for non4managers- 0$ile development involves managerial personnel+ %n t$e 0ords of 'ampbell- training courses are t"picall" designed for a s$ort4term stated set purpose- suc$ as t$e operation of some piece/s1 of mac$iner"0$ile development involves a broader education for long term purposes.+

#raining and development differ in four 0a"s+

/a1 ,&$at. is learned/b1 ,&$o. is learning? /c1 ,&$". suc$ learning ta3es place? and /d1 ,&$en. learning occurs

#$e difference ma" be stated t$us9 Fearning Dimensions &$oM &$atM &$"M &$enM #raining Non Managerial Personnel #ec$nical and Mec$anical Operations Specific Purpose S$ort4term ob Related Development Managerial Personnel #$eoretical %deas 'onceptual

(eneral Nno0ledge Fong4term

BASIC PURPOSES OF TRAINING :+ #o increase productivit" ;+ #o improve 6ualit" <+ #o $elp a compan" fulfill its personnel needs =+ #o improve organizational climate >+ #o improve $ealt$ and safet" @+ Obsolescence prevention A+ Personal (ro0t$

%t ma" be observed t$at t$e need for training arises from more t$an one reason+ :+ !n increased use of tec$nolog" in production ;+ Fabour turnover arising from normal separations due to deat$ or p$"sical incapabilit"- for accidentsdisease- super4annuation- voluntar" retirement- promotion 0it$in t$e organisation and c$arge on occupation or job+ <+ Need for additional $ands to cope 0it$ an increased production of goods and services

=+ *mplo"ment of ine5perienced- ne0 or badl" labour re6uires detailed instruction for an effective performance of a job+ >+ Old emplo"ees need refres$er training to enable t$em to 3eep abreast of t$e c$anging met$odstec$ni6ues and use of sop$isticated tools and e6uipment+ @+ Need for enabling emplo"ees to do 0or3 in a more effective 0a"- to reduce learning time- reduce supervision time- reduce 0aste and spoilage of ra0 material and produce 6ualit" goods and develop t$eir potential+ A+ Need for reducing grievances and minimizing accident rates B+ Need for maintaining t$e validit" and minimizing accident rates and raising t$e morale of its emplo"ees

STEPS IN TRAINING PROGRAMMES #raining programmes are a costl" affair- and a time consuming process+ #$erefore- t$e" need to be drafted ver" carefull"+ 8suall" in t$e organisatoin of training programmes- t$e follo0ing steps are considered necessar"+

:+ Discovering or identif"ing t$e training needs ;+ (etting read" for t$e job+ <+ Preparation Df t$e learner =+ Presentation of operations and 3no0ledge >+ Performance tr"4out @+ Follo0 up and *valuation of t$e programme

1. DISCO$ERING OR IDENTIF6ING TRAINING NEEDS ! training programme s$ould be establis$ed onl" 0$en it is felt t$at it 0ould assist in t$e solution of specific operational problems+ #$e most important step in t$e first place is to ma3e a t$oroug$ anal"sis of t$e entire organisatoin- its operations and man po0er resources available in order to find out ,t$e touble spots. 0$ere training ma" be needed+ %t s$ould- $o0ever- be noted t$at training is not a cure4all+ For e5ample- if t$e efficienc" of an emplo"ee is lo0- or $e cannot get t$e job done- it ma" be due to fault" ra0 materials and e6uipment or not getting t$eir timel" supplies or a defective engineering design or uncongenial 0or3 environment or lo0 0ages or ta5 supervision+ %f t$at is t$e case t$ese problems s$ould be rectified+

3. GETTING READ6 FOR THE #OB 8nder t$is step- it is to be decided 0$o is to be trained t$e ne0comer or t$e older emplo"ee- or t$e supervisor" staff- or all of t$em selected from different departments+ #$e trainer $as to be prepared for t$e job for $e is t$e 3e" figure in t$e entire programme+ #$is calls for a decision on+

#$ese $ave been discussed- in detail- else0$ere in t$is c$apter under t$e $eadings+ Support material for training+ #raining period- #raining for different emplo"ees? and #raining Met$ods+

3. PREPARATION OF THE LEARNER #$is step consists /i1 /ii1 /iii1 /iv1 /v1 /vi1 /vii1 %n putting t$e learner at ease /so t$at $e does not feel nervous because of t$e fact $e is on a ne0 job+1 %n stating t$e importance and ingredients of t$e job- and its relations$ip to 0or3 flo0 %n e5plaining 0$" $e is being taug$t %n creating interest and encouraging 6uestions- finding out 0$at t$e learner alread" 3no0s about $is job or ot$er jobs %n e5plaining t$e ,0$". of t$e 0$ole job and relating it to some job t$e 0or3er alread" 3no0s+ %n placing t$e leaner as close to $is normal 0or3ing position as possible? and %n familiarizing 0it$ t$e e6uipment- materials- tools and trade terms+

5. PRESENTATION OF OPERATIONS AND 9NO8LEDGE #$is is t$e most important step in a training programme+ #$e training s$ould clearl" tell- s$o0- illustrate and 6uestion in order to put over t$e ne0 3no0ledge and operations+ #$e learner s$ould be told of t$e se6uence of t$e entire job- and 0$" eac$ step in its performance is necessar"+ %nstructions s$ould be given clearl"- completel" and patientl"- t$ere s$ould be an emp$asis on 3e" points and one point s$ould be e5plained at a time+ For t$is purpose- t$e trainer s$ould demonstrate or ma3e use of audio visual aids and s$ould as3 t$e trainee to repeat t$e operations+ He s$ould also be encouraged to as3 6uestions in order to indicate t$at $e reall" 3no0s and understands t$e job+

5. PERFORMANCE TR6 OUT 8nder t$is- t$e trainee is as3ed to go t$roug$ t$e job several times slo0l"- e5plaining $im eac$ step+ Mista3es are corrected- and if necessar"- some complicated steps are done for t$e trainee t$e first time+ #$en t$e trainee is as3ed to do t$e job- graduall" building up s3ill and speed+ !s soon as t$e trainee demonstrates t$at $e can do t$e job in a rig$t 0a"? $e is put on $is o0n- but not abonded+

#$e trainee is t$en tested and t$e effectiveness of t$e training programme evaluated+ #$is is usuall" done b"?

a1 (iving 0ritten or oral tests to trainees to ascertain $o0 far t$e" $ave learnt t$e tec$ni6ues and principles taug$t to t$em and t$e sources obtained b" t$em+

b1 #rainees on t$e job itself and administering performance t$em+ c1 Out individual2s or a group reaction to t$e training programme 0$ile it is in progress and getting t$em to fill up evaluation s$eets d1 !rranging structured intervie0s 0it$ t$e participants or sending t$em 6uestionnaires b" mail+ e1 *liciting t$e opinion or judgement of t$e top management about t$e trainee2s performance+ f1 'omparing t$e results obtained after t$e training 0it$ t$ose secured before t$e training programme in order to find out 0$et$er an" material c$ange $is ta3en place in attitude- opinion- in t$e 6ualit" of output- in t$e reduction in scrap- brea3age and t$e supplies used and in over$ead costs+

g1 Stud" of profiles and c$arts of career development of t$e participants and related assignment tec$ni6ues+

#$roug$ one or a combination of t$ese devices- t$e validit" of training programmes ma" be ascertained+ %f t$ere are na" errors or 0ea3nesses t$e" s$ould be corrected and instruction repeated- if necessar"- till t$e trainer 3no0s t$at t$e trainee $as learnt 0$atever $as been imparted to $im+

A. FOLLO8EUP #$is step is underta3en 0it$ a vie0 to testing t$e effectiveness of training efforts+ #$is consists in9

a1 Putting a trainee ,on $is o0n. b1 '$ec3ing fre6uentl" to be sure t$at $e $as follo0ed instruction? and c1 #apering off e5tra supervision and close follo0 up until $e is 6ualified to 0or3 0it$ supervision+

%t is 0ort$ remembering t$at if t$e learner $asn2t learnt- t$e teac$er $asn2t taug$t+

TRAINING METHODSFTECHNI"UES #$e forms and t"pes of emplo"ee training met$ods are inter4related+ %t is difficult- if not impossible- to sa" 0$ic$ of t$e met$ods or combination of met$ods is more useful t$an t$e ot$er+ %n fact- met$ods are multifaceted in scope and dimension- and eac$ is suitable for a particular situation+ #$e best tec$ni6ue for one situation ma" not be best for different groups or tas3s+ 'are must be used in adapting t$e Demonstration On t$e obE met$od to t$e learner tec$ni6ue and t$eand job+ !n effective training tec$ni6ue generall" fulfills t$ese !pprentices$ip e5amples objectives- provides motivation to t$e trainee to improve job performance- develop a 0illingness to c$ange- provide for t$e trainee2s active participation in t$e learning process- provide a 3no0ledge of results about attempts practice 0$ere appropriate+ '$art :;+; gives t$e 'lassroom Jestibule to improve and permit Stimulation tec$ni6ue mostl" used for training of emplo"ees+ Met$ods
Fectures 'onference 'ase Stud"

C,a%t 13.3 C2a!!i1icati-. -1 T%ai.i.0 M t,-/!

Ot$er #raining Met$od

Role Pla"ing Programmed instruction

!ssociations

!udio Jisual !ids

ONETHEE#OBETRAINING (O#T) Jirtuall" ever" emplo"ee- from t$e cler3 to compan" president- gets some ,on t$e job training.0$en $e joints a firm+ #$en 0$" &illiam #rael" calls it ,t$e most common- t$e most 0idel" used and accepted- and t$e most necessar" met$od of training emplo"ees in t$e s3ills essential for acceptable for job performance+

#OB INSTRUCTION TRAINING (#IT) #$is met$od is ver" popular in t$e states for preparing supervisors to train operatives+ #$e %# met$od re6uires s3illed trainers- e5tensive job anal"sis- training sc$edules- and prior assignment of t$e trainee2s job 3no0ledge+ #$is met$od is also 3no0n as ,training t$roug$ step4b"4step learning.+ %t involves listing all necessar" steps in t$e job- eac$ in proper se6uence+ #$ese steps s$o0s 0$at is to be done+ !long side eac$ step is also listed a corresponding ,3e" point. 0$ic$ s$o0 $o0 it is to be done and 0$"+

CLASS ROOM OR OFF THE #OB METHODS 'lassroom or off4t$e4job met$ods9 ,Off t$e job training. simpl" means t$at training is not a part of ever"da" job activit"+ #$e actual location ma" be in t$e compan" classrooms or in t$e places 0$ic$ are o0ned b" t$e compan" or in universities or associations 0$ic$ $ave no connection 0it$ t$e compan"+

#$ese met$ods consist of9 :+ Fectures ;+ 'onferences <+ (roup Discussions =+ 'ase Studies >+ Role4pla"ing @+ Programme %nstruction A+ #4(roup #raining

1. LECTURES (OR CLASSROOM INSTRUCTION) Fectures are regarded as one of t$e most simple 0a"s of imparting 3no0ledge to t$e traineesespeciall" 0$en facts- concepts or principles- attitudes- t$eories and problem4solving abilities are to be taug$t+ Fectures are formal organized tal3s b" t$e training specialist- t$e formal superior or ot$er individual specific topics+

3. THE CONFERENCE METHOD

%n t$is met$od- t$e participating individuals ,'onfer. to discuss points of common interest to eac$ ot$er+ ! conference is basic to most participate group4centred met$ods of development+ %t is a formal meeting- conducted in accordance 0it$ an organized plan in 0$ic$ t$e leader see3s to develop 3no0ledge and understanding b" obtaining a considerable amount of oral participation of t$e trainees+ %t la"s emp$asis on small group discussions- on organized subject matter- and on t$e active participation of t$e members involved+ Fearning is facilitated b" building up on t$e ideas contributed b" t$e conferees+

3. SEMINAR OR TEAM DISCUSSION #$is is an establis$ed met$od of training+ ! seminar is conducted in man" 0a"s+

E4ECUTI$E DE$ELOPMENT !ll t$ose persons 0$o $ave aut$orit" over ot$ers are responsible for t$eir activities and for t$e operation of an enterprise are manages+ %n a business organisation- t$e co4ordination and direction of t$e efforts of ot$ers is a major part of t$e management job+ #$e manager $as to deal not onl" 0it$ t$e staff but also 0it$ ot$ers outside $is o0n group- and $as a decided influence on t$e organisatoin+ %n an" organisatoin eac$ supervisor- foreman- e5ecutive is a manager in t$e area of $is responsibilit"+ *ven t$e corporate c$airman- departmental $ead- personnel administrator- planner or coordinator is- in fact- a manager- alt$oug$ man" of t$em do not supervise ot$ers but are on t$e )oard of Management+ #$e titles of managers are not standardized- but in a broad sense- all supervisors foreman e5ecutives and administrators are managers+ #$ese terms are used interc$angeabl"+

MANAGERIAL FUNCTIONS Managerial functions consist of t$ree 3e" tas3s viz+ :+ #$e maintenance and operation of t$e organizational communication 0it$ a vie0 to translating t$e broad organizational goals into detailed 0or3ing purposes and providing feedbac3 on progress on t$e problems of ac$ievement+ ;+ #$e maintenance of t$e viabilit" of an organisation+ <+ #$e maintenance of fait$ in t$e superiorit" and desirabilit" of ac$ieving t$e organizational aims

For t$e disc$arge of t$ese functions- it is essential and appropriate t$at men 0it$ certain 6ualities are appointed+ #$ese 6ualities ma" be broadl" identified as9 a1 Domination b" organizational personalit"- i+e+ summer or personal predilections and desires 0$ile e5ecuting organizational action+ b1 !d$erence to corporate moralit" and code of conduct in official actions under conditions of po0erful contrar" images i+e+ a $ig$ sense of responsibilit"+ c1 Possession of general abilities suc$ as persistence and determination- fle5ibilit" of mind and in leaders$ip+ d1 Specialized 3no0ledge and abilit" 0$ic$ are pertinent to a particular vocation or discipline+

CHARACTERISTICS OF MANAGERS #$e management development process 0ould be better understood if t$e main c$aracteristics of managers are noted+ #$e successful manager in a large firm $as t$e follo0ing c$aracteristics+

/i1 He moves rapidl" form job to job+ ,%t no0 ta3e ;D "ears on t$e average to president- during 0$ic$ time t$ere are seven geograp$ical moves+ :: positional ones- and countless numbers of special and project assignments.+ More t$an before- t$e successful manager2s career ma" include moving from one compan" to anot$er+ /ii1 He is fle5ible- realistic and sensitive to t$e comple5ities of $is 0or3 environment+ 'ompared 0it$ less successful managers- $e is bot$ c$allenged b"- and comfortable in- situations filled 0it$ $ig$ ris3s and ambiguit"+ /iii1 He earns $is spurs b" $andling critical assignments- 0$ic$ are more important t$an routine 0or3 done 0ell+ /iv1 Jer" often- $e $as a ,sponsor.- someone from t$e $ig$er management 0$o is impressed b" $is abilities- finds $im useful to $ave around- and 0$o loo3s after $is interests+ %t $elps if t$e sponsor is $imself moving up rapidl"+ /v1 He engages in ,anticipator" socialization. at eac$ stage be copies t$e values of t$ose 0$o are a step above $im+ /vi1 He is not necessaril" an ,organisation conformist.+ Hig$ level managers tend to be more- ,inner directed and less ot$er directed. and less concerned 0it$ pleasing ot$ers t$an are t$ose at lo0er levels+

*5ecutive or Management development activities are used inter4c$angeabl"+ #$e" are t$at part of t$e enterprise function 0$ic$ aim at full development of managers at 0$atever level+ *5ecutive development is a s"stematic process of training and gro0t$ b" 0$ic$ managerial personnel gain and appl" s3ill- 3no0ledge- attitude and insig$ts to manage t$e 0or3 in t$eir organizations effectivel" and efficientl"+ %n ot$er 0ords- ,Management development b" 0$ic$ managerial personnel learn conceptual and t$eoretical 3no0ledge for general purposes.+ #$ese purposes concern /i1 productivit"- /ii1 6ualit"/iii1 Human resources planning- /iv1 morale- /v1 indirect compensation- /vi1 $ealt$ and safet"- /vii1 obsolescence prevention and /viii1 personnel gro0t$+

PURPOSE AND OB#ECTI$E OF MANAGEMENT DE$ELOPMENT *5ecutive development is an attempt at improving an individual2s managerial effectiveness t$roug$ a planned and deliberate process of learning+ For an individual t$is means a c$ange t$roug$ a process of planned learning+ #$is s$ould be t$e common and significant aim of development attempts from t$e point of vie0 of t$e trainer and t$e trainee in an organizational setting+

#$e c$ange in t$e individual must ta3e place in t$ose crucial areas 0$ic$ can be considered as output variables+

/i1 /ii1 /iii1 /iv1 /v1

Nno0ledge c$ange !ttitude c$ange )e$aviour c$ange Performance c$ange? and *nd4operational results /t$e last t0o c$anges being t$e result of t$e first t$ree c$anges1

#$e success of development effort- to be mar3ed as effective depends upon t$e follo0ing inputs9 /i1 /ii1 #rainee2s personal c$aracteristics suc$ as $is intelligence and motivation to learn? His actual learning efforts+

#$ese t0o variables are influenced b" /i1 Formal Organisation- /ii1 Feaders$ip 'limate- and /iii1 'ultural factors- suc$ as attitudes and norms of t$e small group of 0$ic$ an individual is a member+

#$e organizational aims of management development are to secure t$e follo0ing valuable end4results

:+ %mprovement in tec$nical performance ;+ %mprovement in supervision and leaders$ip at eac$ level <+ %mprovement in inter4departments co4operation =+ Hig$lig$ting an individual2s 0ea3ness+ >+ !ttracting good men@+ Facilitating sound ,Promotion from 0it$in. Policies and practices A+ *nsuring t$at t$e 6ualifications of 3e" personnel become better 3no0n B+ 'reating reserves in management ran3s? C+ Ma3ing an organisation more fle5ible b" an increased versatilit" of its members? :D+ %mproving organizational structure? ::+ Stimulating junior e5ecutives to do better 0or3 :;+ Neeping t$e compan" abreast of tec$nical and economic conditions and :<+ ,)roadening. 3e" men in t$e middle cadre+

%n sum- management development aims at securing management improvement in t$e s$ort4run+ #$e department of %ndustrial !dministration and )usiness Management+ Del$i 8niversit"- Del$i is of t$e vie0 t$at management objectives s$ould be+

/i1

to create an understanding of t$e met$ods and problems of management+

/ii1 /iii1

to enable candidates to understand t$e problems of a business organisation in so far as t$e" arise out of its policies and s"stem of control? and to indicate $o0 to appl" to practical problems t$e 3no0ledge of t$e p$"sical and social aspects of business problems and management+

On t$e basis of t$e surve" underta3en b" M+ N+ )asavaraj t$e objectives of management development are9 /i1 /ii1 /iii1 /iv1 /v1 /vi1 /vii1 /viii1 to develop manages to perform better on t$eir present assignmentsto prepare t$em for $ig$er assignments? to provide a stead" source of competent persons at all levels to meet organizational needs? to $elp t$em gro0 fast? to $elp t$em gro0 fast? to prevent obsolescence of managers? to replace elderl" e5ecutives- 0$o $ave risen from t$e ran3s- b" $ig$l" competent and academicall" 6ualified professional and to create conditions and a climate 0$ic$ contribute to t$e gro0t$ process+

E4ECUTI$E DE$ELOPMENT PROCESS !ccording to Doo$er and Mar6uis- t$e stages involved in a management development programme are9 :1 organizational planning to determine t$e compan"2s present and future needs;1 programme targeting to focus t$e compan"2s efforts on t$e most pertinent areas? <1 ascertaining 3e" positions re6uirements to stress t$e basic re6uirement of particular managerial positions+ =1 Managerial appraisal- to evaluate periodicall" t$e abilities and performance of individuals 0it$ a vie0 to identif"ing managers s$o0ing a promise of furt$er development and meeting t$eir training needs? >1 Replacement of s3ills inventories to indicate persons 6ualified for managerial replacements? @1 Planning individual development programmes- to provide specific development programmes for promising managers- and A1 !ppraising e5isting programmes to ascertain areas of improvement to be incorporated in future programmes+

Since t$e object of management development is to influence and modif" t$e be$aviour of t$e mangers in operation- it is necessar" t$at in framing a management development programme for specified managerial group- t$e follo0ing points s$ould be involved+

/i1

%dentif" t$e pattern of be$aviour at 0$ic$ t$e programme is aimed at 0$ic$ it see3s to influence and modif"

/ii1 /iii1

%dentif" t$e causes t$e impulse /internal and e5ternal1 inter se $orizontall" up and do0n t$e enterprise 0$ic$ blegad to give rise to t$e pattern of be$aviour+ %dentif" t$e nature of t$e e5posure t$e impulses t$at must be introduced into t$e s"stem t$roug$ t$e development programme 0$ic$ 0ill touc$ t$e springs of motives and responses modif"ing t$e be$aviour in t$e desired direction+ #$e programme must ta3e care to t$ro0 impulses into t$e s"stem in a manner t$at generates t$e urge to be$aviour c$anges from 0it$in t$e trainee manager b" t$e process of evolving rat$er t$an an imposition from outside components or ingredients of management development programme+

/iv1

#$e essential components or steps of a compre$ensive management development programme are discussed belo0 under t$e follo0ing $eads9 /i1 /ii1 /iii1 /iv1 /v1 /vi1 /vii1 Foo3ing at organization2s objectives? !scertaining development needs? !ppraisal of present management talents? Preparation of manpo0er inventor"? Planning of individual development programming? *stablis$ment of training and development programmes? Programme evaluation

Diagrammaticall" t$e model for developing e5ecutives ma" be s$o0n as in t$e 0$ic$ follo0s9

Setting Development Objectives

*stablis$ing Parameters to Development

Determining Development Needs including &$o needs DevelopingM &$at needs DevelopingM

'onducting Development Programmes

!ppraising and *valuating *ffectiveness of Development activities

M-/ 2 1-% D * 2-pi.0 E: c;ti* !

COURSES FOR MANAGEMENT DE$ELOPMENT

!lt$oug$ foreman- department $eads- plant mangers- and vice4presidents are all members of management- t$e nature of t$eir duties and responsibilities differ greatl"+ #$ere are certain areas in 0$ic$ development courses ma" be regarded as essential for all levels of management /suc$ courses as on t$e compan"- on management principles and tec$ni6ues on economic- social and political environment- on personal s3ills and $uman relations+1

Ho0ever- certain areas are more appropriate for one level t$an anot$er+ For e5ample9 foreman are not directl" involved in t$e economic- social and political environment- of a corporation- but t$e e5ecutives are+ Furt$er- in some areas- not onl" t$e content but also t$e dept$ of 3no0ledge and s3ill varies 0it$ t$e personnel involved+

C-;%! ! 1-% & &( %! -1 t, &i//2 &a.a0 & .t c-.tai. 2 & .t! of bot$ top and lo0er level management programmes+ Middle level managers $o0ever- devote a considerable time to $uman relations and personnel management principles because t$ese re essential at all levels of management+ #$e" s$ould $ave a solid grounding in suc$ management tec$ni6ues as cost anal"sis and control data processing+ Production planning and control- data processing- production planning and control- 0age and salar" administration- 0or3 stud" P*R# E 'PM- Jalue engineering etc+

C-;%! ! 1-% 1i%!t 2 * 2 !;p %*i!-%! concentrate upon t$e tec$nical processes of t$e business- $uman relations and personal s3ills for t$e" are immediatel" practicable and are closel" related to a supervisor2s da"4to4da" job+ !ccording to Prof+ )eac$ t$e subject matter of a course for management development ma" comprise+

I. /i1 /ii1 /iii1 /iv1 /v1 /vi1 /vii1

COMPAN6 OR ORGANISATION Objectives and p$ilosop$" Policies- procedures and practices Products and services Organizational structure and organisation d"namics Plant facilities Financial aspects /investment- planning and control- capital budgeting1 Fabour management and non4management relations /industrial relations- $uman relations and personnel administration1

II. /i1 /ii1 /iii1 /iv1 /v1

MANAGEMENT TECHNI"UES AND PRINCIPLES Organisatoin principles Financing- planning and management Management and administrative principles and practices Production planning and control Met$ods anal"sis- 0or3 assignment- 0or3 stud"- materials $andling- value engineering

/vi1 /vii1 /viii1 /i51 /51

'ost anal"sis and control Statistics- Management information s"stem- computer applications Operations researc$ and data processing Mar3eting management- mar3eting researc$ Decision ma3ing+

%%%+ /i1 /ii1 /iii1 /iv1 /v1 /vi1 /vii1

Man relations 8nderstanding Motivation (roup d"namics !ut$orit" concepts !ttitudes- training and development Feaders$ip %ntroducing c$anges Participation programmes Supervisor" responsibilities Selection met$ods and procedures ob evaluation and performance appraisal 'ommunication 'ounselling and suggestion sc$emes 'omplaints and grievances Discipline Fabour economics 'ollective bargaining

/viii1 /i51 /51 /5i1 /5ii1 /5iii1 /5iv1 /5v1 /5vi1 /5vii1

/5viii1 %ndustrial relations+

I$.

TECHNICAL 9NO8LEDGE AND S9ILLS

/i1 /ii1 /iii1 /iv1 /v1 /vi1

!de6uate understanding or tec$nolog"- products process Finear programming P*R# E 'PM 'omputer tec$nolog" )asic mat$ematics Materials $andling

/vii1

%nventor" control

$. /i1 /ii1 /iii1 /iv1 /v1 /vi1 /vii1

ECONOMIC+ SOCIAL AND POLITICAL EN$IRONMENT )usiness *conomic s"stem Relations 0it$ t$e state 'ommunit" relations Social responsibilities of t$e corporations and business Fegal frame 0or3 of business Political s"stems

$I. /i1 /ii1 /iii1 /iv1 /v1

PERSONNEL S9ILLS Spea3ing Report 0riting 'onference leaders$ip Fearning t$roug$ listening Reading improvement

RE$IE8 "UESTIONS :+ *5plain and distinguis$ bet0een t$e concepts of *mplo"ee #raining and Management or *5ecutive Development+ !nal"ze t$e main ingredients of and guidelines for an appropriate training and development polic" in a modern industrial or business organisation+ ;+ Point out clearl" t$e need importance and objectives of manpo0er E $uman resource development 0it$ reference to %ndian conditions <+ On 0$at principles s$ould be training E development programme be builtM &$" s$ould it be desirable to follo0 relevant principles of learning concept and t$eor" in t$e operation of an emplo"ee training e5ecutive development programmeM =+ Outline t$e basic steps in t$e implementation of t$e training development programme in an organisation+ Ho0 0ould "ou evaluate t$e effectiveness of a training E development programmes+ >+ !nal"ze t$e nature- t"pes and scope of training and development programme in a modern organisation+

LESSON C > D

PROMOTIONS+ DEMOTIONS+ TRANSFERS+ SEPARATION+ ABSENTEEISM AND TURN O$ER

INTRODUCTION Promotion- transfer and separation are activities t$oug$ 0$ic$ an adjustment in t$e size of 0or3 force of an enterprise can be made to cope 0it$ t$e c$anging situations+ Suc$ adjustments in 0or3force ma" be needed to meet special situations- suc$ as c$anges in t$e jurisdictions structure involving regrouping of jobs- c$anges in t$e jurisdictions of t$e departments and relocation of individuals- jobs and departments- fluctuation in volume of production and emplo"ment due to introduction of ne0 or complete stoppage of old products- services- processes- met$ods etc+ #$e t$ree functions promotiontransfer and separation provide mobilit" to suit t$e re6uirement of t$e organisation+ #$ese function can be accomplis$ed informall" or formall"+ 8suall" formal s"stems are adopted to secure operative consistenc" and efficienc"+

PROMOTIONS MEANING ,Promotion. is a term 0$ic$ covers a c$ange and calls for greater responsibilities and usuall" involves $ig$er pa" and better terms and conditions of service and t$erefore- a $ig$er status or ran3+ !ccording a Scott and 'lot$ier ,! promotion is t$e transfer of an emplo"ee to a job 0$ic$ pa"s more mone" or one t$at carries some preferred status+ ! promotion ma" be defined as an up0ard advancement of an emplo"ee in an organisation to anot$er job- 0$ic$ commands better pa" E 0ages- better status prestige- and $ig$er opportunities E c$allengesresponsibilit"- and aut$orit"- better 0or3ing environment- $ours of 0or3 and facilities and a $ig$er ran3+

Promotion is a bit different from upgrading- 0$ic$ is concerned 0it$ minor promotions- promotions 0it$in grade or $orizontal promotions+

PURPOSE OF PROMOTIONS ! promotion is a vertical move in ran3 and responsibilit"+ %nvolved in a promotion ma" be some measure of s3ill- and responsibilit" e+g+ it ma" be from a Mac$inist ) grade to a Mac$inist ! grade- or it ma" involve an entirel" different t"pe of 0or3- for e5ample- from salesman to a sales mangers or from a fitter grade %%% to a fitter %%- or from a cler3 to t$e post of a section in4c$arge+ Promotions are usuall" given9 /i1 /ii1 #o put t$e 0or3ers in a position 0$ere $e 0ill be of greater value to t$e compan" and 0$ere $e ma" derive increased personal satisfaction and income from $is 0or3? #o remove a 0or3ers form $is job as an alternative to avoid t$e embarrassment or fi5ing or demoting $im+

/iii1

#o recognize on individual2s performance and re0ard $im for $is 0or3 so t$at $e ma" $ave an incentive to forge a$ead+ *mplo"ees 0ill $ave little motivation if better jobs are reserved for outsiders+ #o increase an emplo"ee2s organizational effectiveness? #o build up morale- lo"alt" and a sense of belonging on t$e part of t$e emplo"ees+ #o promote job satisfaction among t$e emplo"ees and give t$em an opportunit" for unbro3en- continuous service+ #o provide a process of ,selective socialization.+ *mplo"ees 0$ose personalities and s3ills enable t$em to fit into an organization2s $uman relations programme tend to sta" on? #o attract suitable and competent 0or3ers for t$e organizations #o create among emplo"ees a feeling of contentment 0it$ t$eir present conditions and encourage t$em to succeed in t$e compan"+

/iv1 /v1 /vi1 /vii1 /viii1 /i51

T6PES OF PROMOTIONS Promotions ma" be multiple c$ain promotions 0$ic$ provide for a s"stematic lin3ing of eac$ position to several ot$ers+ Suc$ promotions indentif" multi4promotional opportunities t$roug$ clearl" defined avenues of approac$ to and e5it from eac$ position in t$e organisatoin+

%n a up or out promotion- a person must eit$er earn a promotion or see3 emplo"ment else 0$ere+ Man" universities and bot$er organizations follo0 t$e practice+ Suc$ promotions often lead to termination of services+ Dr" promotions are t$ose 0$ic$ are given in lieu of increases in compensation i+e+- 0$en all compensations is adjusted up0ard to 3eep pace 0it$ t$e cost of living 0e $ave dr" promotions+

Promotions becomes a delicate problem not in t$e matter of selection of t$e rig$t incumbent for t$e rig$t job- but it poses a constant c$allenge to e5ecutives at all levels and impels t$em to c$al3 out a 0ell t$roug$ out programme b" 0$ic$ t$e best and t$e most capable individuals ma" find an opportunit" to go up to t$e top+ #$e procedure of promotion- t$erefore- starts rig$t at t$e bottom from t$e s$op floor and ends 0it$ t$e managing director of a compan"+

#$e promotion polic" s$ould involve si5 elements as follo0s9 :+ Promotion polic" statement- 0$ic$ s$ould consider 0$et$er vacancies are primaril" to be filled up from 0it$in an organisation or b" recruitment from outside+ %s onl" preferential treatment to be given to direct recruitsM &ould it be sound to den" promotion to ot$er0ise 6ualified personnelM &$et$er an increase in pa" is to be givenM %f so- 0$en and $o0 muc$M 8suall"- internal promotions are preferred over e5ternal recruitment and increase is given at t$e time of promotion- ot$er0ise promotion is meaningless+ ;+ *stablis$ a plan of jobs- i+e+- decide on 0$at basis promotions are to be given+ &$et$er on performance appraisal- or on t$e basis of confidential records- or job and post4bid s"stem+ &$ic$ positions are to be filled upM 8suall" promotions are decided on t$e basis of performance

appraisals+ , ob4post and bid s"stem. i+e+ posting of job vacancies indicating job titles- duties- pa" and 6ualifications on compan" notice boards is also utilized+ <+ #race transfer routes i+e+- $aving some t"pe of formal and s"stematic promotion c$annels+ Fadders giving pat$s of advancement- promotional c$arts- opportunit" c$arts or fortune s$eets clearl" identified and recorded on paper+ Dead4end jobs s$ould be labeled and t$e pat$ up0ard 0ell mar3et+ =+ Prepare emplo"ees for advancement- t$roug$ t$e provision of some training eit$er on t$e job in professional E tec$nical institutions or t$roug$ job rotation- multiple management- under4stud" and conferences+ >+ 'ommunicate t$e polic"+ #$e organisation s$ould communicate its promotion polic" eit$er in t$e form of a set of standing orders+ #o $ave a polic" and not to communicate it to t$e emplo"ees 0ill onl" create suspicions and misgiving+ Ho0ever- for $ig$er level personnel a precise formulation of suc$ a polic" ma" not be effective @+ Detailed personnel and service records are 3ept read" on t$e basis of 0$ic$ promotions ma" be made+

#$e follo0ing indices are available for judging 0$et$er candidates are suitable for promotion+

#$e margin of performance on $is present job i+e+- does $e run it 0it$ case and 0it$ margin to spare or is $e barel" able to manage $is jobM

Fle5ibilit" or versatilit" i+e+- $as $e been successful on different t"pes of jobs re6uiring different s3ills and different abilities- or does $e seem to be onl" in a restricted fieldM

%ntelligence- i+e+- $o0 does $e t$in3M Ho0 $as $e learnt on 0or3 $e $as carried outM *6uipment- i+e+- $o0 compatible are $is education- literac"- e5pression and personalit" 0it$ t$e critical needs of t$e jobM

Motivation i+e+- 0$at re $is 0antsM &$at is important for $imM &$en are $is goals- $is objectives in 0or3 and lifeM

PROMOTION POLIC6 #$e usual polic" is to ta3e merit into consideration+ Sometimes lengt$ of service- education- training courses completes- previous 0or3 $istor" etc+- are factors 0$ic$ are given 0eig$t 0$ile deciding on a 0or3- coDoperation- merit- $onest"- man" informal influences are po0erful determinants of a promotional polic"+

SENIORIT6 $ERSUS MERIT

,Seniorit" relates to lengt$ of service in t$e compan" or in its various plants or in its departments or in a particular position+ 8nder straig$t plan40ise seniorit" in all jobs- promotions go to t$e oldest emplo"ee provided t$at $e is fit for t$e job+ Occupational seniorit" ma" be 0it$in a department- 0it$in a division or in t$e entire plant+

ARGUMENTS FOR AND AGAINST PROMOTION B6 SENIORIT6 S6STEMS Promotion b" seniorit" is preferred b" trade unions and most emplo"ees because a1 #$e s"stem is simple to understand and operate+ !ll emplo"ees are assured t$at promotion 0ill come automaticall" 0$en it is due+ b1 %t satisfied t$e personal aspirations of t$e emplo"ees for gro0t$- builds morale and is conductive to better labor2s management relations+ c1 %t leads to an optimum utilization of t$e e5isting 0or3force b" training and development+ d1 #$is s"stem is muc$ more economical t$an open mar3et recruitment or recruitment b" negotiation 0it$ ot$er belonging to anot$er organisation+ e1 #$e management 0ill $ave a 3no0n man of good performance in a $ig$er position t$an t$at ta3e a ris3 in bringing an un3no0n outsider+

)ut t$is s"stem also suffers from certain dra0bac3s too suc$ as9 a1 #$e internal sources ma" be 6uite inade6uate- and possibilities are t$at people 0$o do not 6uite come up to t$e re6uirements of $ig$er jobs- ma" be promoted+ b1 Since t$e 0or3ing s"stem and tec$nolog" c$ange ver" fast- it is necessar" t$at ne0 blood s$ould be infused 0it$ ne0 and up4to4date 3no0ledge and ideas- 0$ic$ t$e older persons in organisation ma" be lac3ing+ c1 #$e 0ort$ of an individual is not appreciated and given due recognition+ #$is generates frustration and ma" constrain a good emplo"ee to leave t$e organisation+ d1 &$en t$ere are 0$olesale promotions- promotion from 0it$in mig$t cause disorganization and upset t$e 0or3ing of t$e organisation+

On t$e ot$er $and- t$e s"stem of promotion b" merit enjo"s t$ese benefits a1 %t brings re0ards for meritorious 0or3- e5tra competence- ac$ievement and initiative+ b1 %t encourages an emplo"ee to 0or3 $ard so t$at $e ma" get an opportunit" for advancement in t$e organisation+ c1 %t leads to increased productivit"- for individuals are satisfied t$at t$eir merit and competence 0ill be properl" appreciated and re0arded+

DEMOTION

7Demotion2 $as been defined as ,t$e assignment of an individual to a job of lo0er ran3 and pa" usuall" involving lo0er level of difficult" and responsibilities.+

%n ot$er 0ords- demotion refers to t$e lo0ering do0n of t$e status- salar" and responsibilities of an emplo"ee+ %t is used- as a punitive measure 0$en t$ere are serious breac$es of dut" on t$e part of an emplo"ee 0$en it is often a preliminar" to a dismissal+ &$en an emplo"ee is demoted $is pride offers a more sever jolt t$an it does 0$en $e is superseded b" $is junior+

CAUSES OF DEMOTION Demotions ma" be caused b" factors be"ond on emplo"ee2s control+ /i1 &$en departments are combined and jobs eliminated- emplo"ees are often re6uired to accept lo0er4level position until normalc" is restored+ Suc$ demotions are not blac3 mar3 against an emplo"ee %nade6uac" on t$e part of t$e emplo"ees in terms of jobs performance attitude and capabilit" as $appens 0$en an individual finds difficult to meet job re6uirement standardsfollo0ing $is promotion and &$en- because of a c$ange in tec$nolog"- met$ods and practices- old $ands are unable to adjust- or 0$en emplo"ees- because of ill $ealt$ or personal reasons- cannot do t$eir job properl"+ Demotion is also used as a disciplinar" measure

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DEMOTION POLIC6 Goder- Heneman- #urnbull and Stone $ave suggested a fine4fold polic" in regard to demotion practice+ /i1 /ii1 /iii1 /iv1 /v1 ! clear and reasonable list of rules s$ould be framed- violations of 0$ic$ 0ould subject an emplo"ee to demotion+ #$is information s$ould be clearl" communicated to emplo"ee+ #$ere s$ould be a competent investigation of an" alleged violation %f violations are discovered- t$ere s$ould be a consistent and e6uitable application of t$e penalt"- preferabl" b" t$e immediate supervisor+ #$ere s$ould be a provision for revie0+ /%n a unionized case- t$is 0ill be automatic via t$e grievance procedure- in a non4unionized case t$e emplo"er 0ill need to ma3e ot$er provision for revie01

TRANSFER #ransfer are generall" effected to build up a more satisfactor" 0or3 team and to ac$ieve t$e follo0ing purposes+

a1 #o satisf" needs of an organisation

b1 #o meet and emplo"ee2s o0n re6uest c1 #o utilize properl" t$e services of an emplo"ee d1 #o increase t$e versatilit" of t$e emplo"ee e1 #o adjust t$e 0or3force of one plant 0it$ t$at of anot$er f1 #o replace t$e ne0 emplo"ee b" an emplo"ee 0$o $as been in t$e organisation for a sufficient long time+

g1 #o $elp emplo"ees 0or3 according to t$eir convenience so far as timings are concerned+ $1 #o penalize t$e emplo"ee transfers are also done+ i1 #ransfer for t$e maintenance of a tenure s"stem+

Scott and ot$er $ave classified transfers according to9 /i1 #$e convenience of t$e compan" a1 #emporar" transfers arising from temporar" absenteeism- s$ifts in t$e 0or3 load- reception+ b1 Permanent transfers arising out of s$ifts in t$e 0or3 load- vacancies 0$ic$ need t$e special s3ill or abilit" of t$e transferred emplo"ee+ /ii1 #$e convenience of t$e emplo"ee a1 #emporar" transfers arising form t$e ill $ealt$ of or in accident to an emplo"ee- for famil" reasons or for ta3ing care of some private affair+ b1 Permanent transfers arising out of ill $ealt$ or accident out of outside interest for e5amplefor t$e purpose- of attending it professional sc$ool or similar activities- out of famil" consideration out of a desire to learn a particular s3ill+

TRANSFER POLIC6 *ver" organisation s$ould $ave a just and impartial transfer polic" 0$ic$ s$ould be 3no0n to eac$ emplo"ee+ #$e responsibilit" for effecting transfers is usuall" entrusted to an e5ecutive 0it$ po0er to prescribe t$e conditions under 0$ic$ re6uest for transfers are to be approved+

For successful transfer policies- it is necessar" to $ave a proper job description and job anal"sis+ 'are s$ould be ta3en to ensure t$at fre6uent or large scale transfers are avoided b" la"ing do0n ade6uate selection and placement procedures for t$e purpose+

! good transfer polic" s$ould9 /i1 /ii1 /iii1 Specificall" clarif" t$e t"pes of transfers and t$e conditions under 0$ic$ t$ese 0ill be madeFocate t$e aut$orit" in some officer 0$o ma" initiate and implement transfers%ndicate 0$et$er transfers can be made onl" 0it$in a sub4unit or also bet0een departmentsdivision E plants

/iv1 /v1 /vi1 /vii1 /viii1

%ndicate t$e basis for transfer i+e+ 0$et$er it 0ill be based on seniorit" or on s3ill and competence or an" ot$er factor+ Decide t$e rate of pa" to be given to t$e transferee %ntimate t$e fact of transfers to t$e person concerned 0ell in advance )e in 0riting and dul" communicated to all concerned+ Not be made fre6uent and not for t$e sa3e of transfer onl"+

PROCEDURE FOR TRANSFER %ntra departmental transfers or transfers 0it$in t$e same section of t$e same department are decided b" t$e foreman or plant manager- and t$ese are effected 0it$out t$e issue of an" transfer order to t$e emplo"ee+ He ma" be given oral instructions+ #$e personnel manager- $o0ever- must be informed of suc$ transfers+

%nter departmental transfers or transfers from one department to anot$er are decided b" mutual consultations among t$e departmental $eads E plant managers 0$en suc$ transfers are of a permanent nature or of long duration &ritten orders- signed b" t$e personnel manager are issued to t$e emplo"ee+ #ransfers from one place or unit to anot$er place or unit- involving a considerable c$ange in 0or3ing conditions and cost to t$e compan"- $ave to be made in 0riting- after giving due notice to t$e emplo"ees+ )ut- as far as possible- muc$ transfers are generall" discouraged+

SEPARATIONS ,Separation. means cessation of service of agreement 0it$ t$e organisation for one or ot$er reasons+ #$e emplo"ee ma" be separated from t$e pa" roll a compan" as a result of+ :+ Resignation+ ;+ Disc$arge and dismissal? <+ Suspension and retrenc$ment? and =+ Fa"4off+

ABSENTEEISM !bsenteeism $as been variousl" defined b" different aut$orities !ccording to &bster2s Dictonar",absenteeism is t$e practice or $abit of being an 7absentee2- and an 7absentee2 is one 0$o $abituall" sta"s a0a".+ !ccording to t$e Fabour )ereau- Simla- ,!bsenteeims is t$e total man s$ifts lost because of absences as a percentage of t$e total number of man s$ifts sc$eduled to 0or3.+ %n ot$er 0ords- it signifies t$e absence of an emplo"ee form 0or3 0$en $e is sc$eduled to be at 0or3- it is unaut$orizedune5plained- avoidable- and 0illful absence from 0or3+ For calculating t$e rate of absenteeism- t0o facts are ta3en into consideration t$e number of persons sc$eduled to 0or3 and t$e number actuall" present+ ! 0or3er 0$o reports for an" part of a s$ift is to be considered present+ !n emplo"ee is to be considered sc$eduled to 0or3 0$en t$e emplo"er $as 0or3 available and t$e emplo"ee is a0are of itand 0$en t$e emplo"er $as no reason to e5pect- 0ell in advance- t$at t$e emplo"ee 0ill not be available for 0or3 at t$e specialized time+ !n" emplo"ee 0ill not be available for 0or3 at t$e specialized

time+ !n" emplo"ee ma" sta" a0a" from 0or3 it $e $as ta3en leave to 0$ic$ $e is entitled or on t$e ground of sic3ness or some accident- or 0it$out an" previous sanction of leave+ #$is absence ma" be aut$orized or unaut$orized- 0illful or caused b" circumstances be"ond one2s control+

RE$IE8 "UESTIONS :+ State t$e objectives of promotion of emplo"ees ;+ &$at are t$e causes of absenteeismM <+ &$at is ,Demotion.M &$en it is preferredM =+ &rite a note on ,Seniorit" Js Merit.+

LESSON 1G PERFORMANCE APPRAISAL

DEFINITIONS 7 TERMS USES AND THEIR IMPLICATIONS ! Proper and s"stematic appraisal or evaluation of an emplo"ee in an" organisation is not onl" necessar" at t$e time of $is or $er recruitment- selection and placement but it is useful- and also desirable- to ma3e an appraisal of t$e performance of suc$ an emplo"ee on a continuing basis during $isE$er 0or3ing life+ #$e fact of evaluation of personnel as a formal process or s"stem in some form or anot$er is inevitable and all organizations ma3e some efforts to determine 0$et$er individual members at various levels of t$e organisation are contribution to t$e attainment of objectives+

%n general- all managers or e5ecutives judge t$eir subordinates and subjectives also form judgments of t$eir superiors- t$eir co40or3ers or colleagues- t$eir jobs and t$e compan" as a 0or3place+ &$ile some judgments are onl" personal opinions- ot$er evaluative judgments /referred to variousl" as 7merit4 rating2- 7emplo"ee evaluation2- judgments- 7personnel or performance appraisal- progress report27emplo"ee appraisal2- 7evaluation of personnel2 or 7performance appraisal21 relate to ,t$e 6ualit" of 0or3 performance and to t$e components of t$e 0or3 relations$ip bet0een superior and subordinate.+ *valuation of emplo"ees is t$us one of t$e universal practices of management t$at is usuall" applied to all categories of emplo"ees- 0$et$er operatives- tec$nical or managerial+

%n a simple 0a"- 7performance appraisal2 or merit4rating of an emplo"ee of ,t$e process of evaluating t$e emplo"ee performance on t$e job in terms of t$e re6uirements of t$e job.+ Flippo defines performance appraisal as ,a s"stematic periodic and so far as $umanl" possible- an impartial rating of an emplo"ee2s e5cellence in matters pertaining to $is present job and to $is potentialities for a better job+ %t is s"stematic in t$at it evaluates all performance in t$e same manner utilizing t$e same approac$ so t$at t$e ratings obtained to separate personnel are comparable+

%t is believed t$at t$e term emplo"ee evaluation or appraisal 0as first used during 0orld 0ar % 0$en- at t$e instance of &alter D+ Scott- t$e 8+S+ !rm" adopted t$e man to man rating s"stem for evaluating militar" personnel+

Subse6uentl"- t$e polic" of giving grade 0age increments to $ourl" paid 0or3ers in industrial organizations on t$e basis of merit 0as introduced during :C;Ds+ Suc$ an "earl" evaluation or appraisal plan 0as 3no0n as ,merit rating programme.+

Most of t$e emplo"ee evaluation or appraisal plans 0ere of t$e rating scale t"pe upto mid4fifites in 0$ic$ $eav" emp$asis 0as laid upon personal traits+ %t 0as 0it$ t$e beginning of :D>Ds t$at attention 0as dra0n to0ards t$e performance appraisal of professional- tec$nical and managerial personnel in various industrial or business organisation+

(raduall"- as a result of more stud" and researc$ /e5perimentation1- emplo"ee appraisal or performance appraisal plans $ave undergone man" c$anges+ !t present emp$asis in emplo"ee or personal appraisal plans for evaluating professional- tec$nical and managerial emplo"ees is being 0idel" placed on t$e development of t$e individual and t$e older term 7merit4rating2 is restricted to a large e5tent to t$e evaluation of $ourl"4paid emplo"ee 6uite often for developing t$e criteria for 0age adjustments- promotions- transfers etc+

PURPOSES F USES OR OB#ECTI$ES AND IMPORTANCE OF PERFORMANCE APPRAISAL #$e basic purpose of performance appraisal is to ascertain 0$et$er t$e be$aviour of an emplo"ee in an organisation is so integrated 0it$ establis$ed role re6uirements t$at $e ma" be considered a success or is at so muc$ variance 0it$ t$em t$at $e ma" be considered a failure+ %ndividual appraisal is done to determine t$at action relating to re0ard or penalt" t$at ma" be ta3en 0it$ regard to a person ran3 and file emplo"ee or a manager- e+g+- ta3ing a decision for increasing or decreasing t$e person2s pa" or emoluments or leaving it t$e same+

%n addition- t$e emplo"ee performance appraisal or evaluation ma" also be used as a basis for a placement decision involving promotion- demotion- transfer- retention in t$e same job or even separation+

)esides- performance appraisal data ma" also be used in decisions regarding training and development polic" and programmes bot$ directl" /t$roug$ a feedbac3 of t$e conclusions to t$e person evaluated1 as 0ell as indirectl" /as an indicator of t$e educational re6uirements of manpo0er E personnel in future1+ %n general- t$e objectives of performance appraisal ma" be stated to include? /a1 ,#o identif" areas for furt$er training needs? /b1 #o $elp determine promotions and transfers /c1 #o reduce grievances? and /d1 #o improve job performance.+

!ccording to ucius- ,First and foremost is t$e objectives of determining more accuratel" 0$ic$ emplo"ees s$ould receive pa" increase- 0$o s$ould be given transfers or promotions and 0$ic$ s$ould be given preferred status and privileges+ Second- evaluations are ver" useful in counselling- i+e+- in suggesting 0$at a person s$ould do it improve performance and c$ances for advancement+

#$ird- 0$en disputes arise over pa"- promotions- etc+- t$e availabilit" of a series of ratings provides management 0it$ information 0$en conferring 0it$ t$e aggrieved+

Fourt$- supervisor and e5ecutive 0$o 3no0 t$at $e" 0ill be e5pected periodicall" to fill out rating forms /and be prepared to justif" t$eir estimates1 0ill tend to be more observant of t$eir subordinates and $ence to become better da"4to4da" supervisors+

!ccording to Douglas Mc(regor- ,Formal performance appraisal plans are designed to meet t$ree needs- one of t$e organisation and t$e ot$er t0o of t$e individual- viz+

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#$e" provide s"stematic judgement to bac3 up salar" increases- transfers- demotions or termination+ #$e" are means of telling a subordinate $o0 $e is doing and suggesting needed c$anges in $is be$aviour- attitudes- s3ill or job 3no0ledge+ #$e" let $im 3no0 ,0$ere $e stands. 0it$ t$e boss and #$e" are used a base for coac$ing and counselling t$e individual b" t$e superior+ !lt$oug$ a formal performance appraisal or evaluation plan need not encompass all t$e objectives referred to above "et t$ese are generall" 3ept in vie0+

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Performance appraisal is an important tool of personnel management+ Since it reflects an evaluative judgement of t$e traits- c$aracteristics as 0ell as t$e 0or34performance of t$e emplo"ees on t$eir jobs+

Obviousl"- t$erefore- t$e utilit" or importance of emplo"ee evaluation or performance appraisal 0it$in an organisatoin is reall" ver" grant from t$e point of vie0 of emplo"ees bot$ subordinates and superiors as 0ell as t$e organisation+

%t facilitates t$e accomplis$ment of individual and group organizational objectives+ *mplo"ees ma" earn emplo"ment privileges b" better performance t$roug$ t$e use of some plan of evaluating t$eir performance 3no0n b" various names suc$ as merit rating- progress report- service appraisalperformance evaluation etc+

Suc$ appraisal or evaluation plans serve as a basis for conunselling emplo"ees about t$eir strengt$s and 0ea3nesses or far improving t$eir productive efficienc" and for bettering supervisor E superior emplo"ee relations b" developing material confidence+

!n important value of an appraisal plan lies in its informative nature- i+e+ t$e abilit" to provide objective data on job performance and role e5pectation+ #$e s$aring of t$is data 0it$ t$e emplo"ee is li3el" to reduce superior subordinate friction and t$ere is reason to believe t$at suc$ a plant $as t$e potential to minimize ma" e5isting problems and t$us to reduce non4productive costs+

Periodic and accurate appraisal or evaluation establis$ suc$ organisation climate or atmosp$ere in 0$ic$ personal criticism- ma" be used constructivel" for self4managemnt or advancement 0it$out resentment+ #$e" also $elp in improving t$e 6ualit" of supervision b" constraining supervisors E superiors to be alert and competent in t$eir 0or3 and at t$e same time provide t$e supervisors 0it$ an effective tool far rating t$eir subordinates+

Hence evaluation of emplo"ees is applied formall" or informall" to all levels of personnel in various organizations 0$et$er operative- tec$nical- professional and managerial E e5ecutive+

IMPORTANT RULES F PRERE"UISITES OR A GOOD APPRAISAL OR E$ALUATION PLAN %t is important to remember t$at emplo"ee performance appraisals or ratings are mere significant tools of effective personnel management and t$e accomplis$ment of t$e desired ends depends undoubtedl" on t$e proper and s3illful use of suc$ ratings+ Hence- it ma" be appropriate to suggest certain prere6uisites /guiding principles or rules1 0$ic$ if follo0ed continuousl"- 0ill en$ance t$e utilit" or contributions of suc$ evaluations+

#$ese principles ma" be put as follo0ing9 :+ ! good appraisal or rating programme s$ould encompass all levels and categories of emplo"ees? ;+ Raters s$ould be selected carefull" and judiciousl" and s$ould be provided 0it$ necessar" training? <+ #$e raters s$ould be t$oroug$l" instructed in t$e purpose and values of t$e programme =+ !ll t$e factors and terms s$ould be understood b" t$e raters ade6uatel" >+ #$e sensitivit" factor in evaluation E rating must necessaril" be full" recognized b" t$e raters and t$e appraisal plan s$ould give assurance to individuals being evaluated t$at no arbitrar" decisions 0ill be reac$ed+ @+ *valuation or rating s$ould be vie0ed in its ps"c$ological- sociological as 0ell as tec$nical frame 0or3 since individuals ma" easil" react unfavorabl" even to a fair evaluation in case t$e" $ave a feeling t$at t$e appraisal plan or s"stem t$em to a fall in status in t$e e"es of colleagues or co4 0or3ers+ A+ *ver" care must be ta3en to improve t$e accurac" of appraisals or evaluations+ Obviousl"t$erefore- ever" appraisal programme must be bot$ reliable and valid- i+e+- t$e results of suc$ appraisal or evaluation s$ould be replicable and t$e appraisal plan s$ould measure t$ose areas of performance t$at are appropriate to t$e organization2s needs+ B+ !n incentive s$ould be built into an appraisal plan programme- i+e+ a re0ard s$ould follo0 satisfactor" performance- t$e re0ards being scaled to various degrees of satisfactor" performance? and C+ !n appraisal plan must be integrated into organisation-+ i+e+- t$ere must be clear4cut relations$ips bet0een t$e appraisal plan and t$e organization2s policies relating to training- promotion- transfer etc+

MANAGEMENT APPRAISAL INDICATORS OF MANAGERHS EFFECTI$ENESS Managers E e5ecutives perform activities t$at are peculiar to managerial occupations and t$us of particular concern in management appraisal+ #$e job of managing is largel" c$aracterized b" t$e attempt to elicit $ig$ levels of productivit" and a ma5imal contribution to organizational maintenance from ot$ers+

#$e manager is assigned muc$ more t$an $e can do alone and so $e must get ot$ers to $elp in t$e performance of $is role.+ !ppraisal or evaluation of managers is- t$erefore- consistenc" made in terms of its effects on ot$ers- i+e+- in terms of its supervisor" aspects+ %n ot$er 0ords- t$e effectiveness of managers is evaluated in suc$ terms as 0$et$er be facilitates t$e 0or3 efforts of $is subordinates or 0$et$er $e acts in a 0a" 0$ic$ ma3es less effective t$an 0$at $e ot$er0ise 0ould $ave been obviousl"+ Obviousl"- successful managing cannot be adjudged e5clusivel" in terms of t$e manager2s be$aviour to0ards $is subordinates- t$oug$ it ma" be considered e5tremel" important+ ! manager or e5ecutive- particularl" at t$e upper level- is often re6uired to ma3e decision $aving a direct impact upon t$e organization2s productivit" and profit goals+

%n suc$ a situation- $e is li3el" to be considered unsuccessful in case $is decisions later prove to be inaccurate resulting in an" unnecessar" 0astage of compan" assets or reduction in t$e profits or productivit" or e5posure of t$e compan" to an" e5ternal t$reats to organizational maintenance etc+ besides appraisal or evaluation of managers in terms of t$eir impact on internal stresses 0it$in t$e organisation or compan" is also important+

#$e e5tent to 0$ic$ $e is capable of reducing internal conflicts and dissensions or $eading off labour difficulties or unrest or $andling union representative tactfull" 0it$out provo3ing t$em etc+ largel" determines $is success or failure in managing+

APPRAISAL POLIC6 #$e administration of effective appraisal plans or programmes re6uires some important polic" decisions relating to problems suc$ as9 a1 'overage b" t$e plans /i+e+- 0$o is to be covered b" an appraisal plan1 b1 Fre6uenc" and place of appraisals /i+e+ t$e interval bet0een different formal appraisals? c1 Responsibilit" for appraisal- and d1 #$e use of appraisal results

!s regards t$e coverage b" appraisal plans- most organisatoins endeavour to include all emplo"ees in s"stematic performance appraisal met$ods but all t$ese needs ver" among t$e mare emplo"ee groupings /suc$ as engineering clerical etc+ and also at different levels in t$e organisatoin concernedan organisatoin or compan" ma" develop not one but several appraisal plans to suit var"ing groups at different levels+

%n general- t$e different appraisal plans are basicall" consistent 0it$ one anot$er in t$eir underl"ing approac$ and p$ilosop$"+ ! beginning in t$is respect at $ig$er levels of an organisatoin is considered better since lo0er levels of t$e organisation can respond better if t$e" are not singled out b" t$emselves for an imposed plan+

!s regards t$e fre6uenc" of appraisals- generall" a ma5imum interval bet0een formal appraisals is one "ear- t$oug$ in some cases a si54mont$ period is adopted for t$e first fe0 "ears of a plan after 0$ic$ t$e time span ma" be e5tended+ 8suall" ne0 emplo"ees are evaluated more fre6uentl" t$an t$e older ones+ %t is believed t$at performance appraisal becomes 7perfunctor" and unreliable2 0it$out a periodic and s"stematic plan+ Regarding t$e place or location 0$ere an emplo"ee ma" be appraised or evaluated- it is desirable t$at appraisal s$ould usuall" be performed at t$e place of 0or3 or office of t$e supervisor /superior1+ Ho0ever- informal appraisals ma" ta3e place an"0$ere on t$e job in 0or3 situations or off4t$e4job+

!s regards t$e polic" on t$e use of t$e appraisal results- it is necessar" t$at organisatoins or companies s$ould ma3e full t$e judicious use of t$e information supplied b" appraisal E procedures E plan+

#$ere are numerous 0a"s in 0$ic$ managers ma" appl" t$e results 0$ic$ include+ a1 Developing t$e present performance capabilities of individuals? b1 Promptabilit" of individuals? c1 Ma3ing salar" adjustments d1 !ssistance in ma3ing decisions on transfers or demotions- and e1 Ma3ing la"4off or termination decisions

APPROACHES TO PERFORMANCE APPRAISAL %n general 0e find t$ree approac$es to performance appraisal practices procedures t$at ma" be stated as follo0s9

:+ ! casual- uns"stematic and Hap$azard !ppraisal S"stem 0$ic$ 0as fre6uent in t$e beginning and 0$ic$ $as subse6uentl" given place to more formal appraisal met$od+ %t $as been largel" based on seniorit" or 6uantitative standards of output for ran3 and file emplo"ees+ ;+ ! traditional and Hig$l" S"stematic Measure of *valuation or Rating 0$ic$ is concerned 0it$ t$e basis of comparing emplo"ees personal c$aracteristics or contributions or bot$? <+ ! )e$avioral !pproac$ 0$ic$ is based on t$e be$avioural value of fundamental trust in t$e goodness capabilit" and responsibilit" of $uman being+ #$is approac$ la" emp$asis upon providing mutual goal setting and appraisal of progress made b" bot$ t$e appraisee /emplo"ees or t$ose being evaluated1 as 0ell as t$e appraiser /t$e raters or t$ose 0$o evaluate1

METHODSF TECHNI"UES OF PERFORMANCE APPRAISAL AND STEPS IN AN APPRAISAL PROGRAMME %n fact appraisal or evaluation of personnel is constanctl" being done- t$oug$ at an unconscious level+ *mplo"ees evaluate superiors and follo0 colleagues and supervisors evaluate t$eir subordinates+ !ctuall" 0$at is re6uired to generate a proper control is a formal procedure for evaluating personnel 0it$in t$e organisation+

Obviousl"- appraisal t$us occurs in an organisation 0$et$er a formal s"stem of appraisal prevails t$erein or not but t$e fact cannot be denied t$at s"stematic and periodic formal appraisals en$ance t$e possibilit" of fairness accurac" and completeness as 0ell as t$e" establis$ compan" 0ide consistenc" of practice+ !s regards t$e formal appraisal s"stems- t0o basic t"pes of suc$ s"stems are used 0idel" viz+ /a1 !ppraisal of personnel E emplo"ees according to t$eir traits- arrivutes and general be$aviour on t$e job? and /b1 !ppraisal of t$e results- 0or34performance and goal ac$ievement of t$e emplo"ee E personnel+ )ot$ of t$ese involve a t0o4step process+ /i1 Ma3ing t$e appraisal? and /ii1 revie0ing t$e results 0it$ t$e subordinate+

#$e former s"stem /t$e trait approac$1 evolved first in management $istor" resulting in t$e development of various 3inds of ran3ing s"stems and grap$ic rating scales+ Results oriented appraisals are comparativel" of recent origin and $ave been rat$er used 0idel" during a little over a decade or so+

Ho0ever- t$e t0o approac$es are not e5clusivel" separate since a focus on t$e personal traits of t$e emplo"ee necessitates t$e evaluation of t$e 0or3 performance of t$e individuals and focus on results+ 8ltimatel" includes some assessment of personalit" c$aracteristics and emplo"ee traits+

%n fact it is not al0a"s possible to measure emplo"ee contributions as an individual2s 0or3 is intermi5ed 0it$ t$at of ot$ers+ %n suc$ cases individual traits c$aracteristics and be$aviour instead of contributions /results1 ma" be used as t$e basis of appraisal E evaluation+

)efore a detailed anal"sis of t$e met$ods E tec$ni6ues and procedures of appraisal in t$e t0o approac$es mentioned above- some obvious reason for differences ma" be stated+ #$e various met$ods differ because of differences in /a1 Personal traits of emplo"ees /b1 ob re6uirements /c1 *mplo"ee groups /d1 Degree of precision attempted in appraisals? and /e1 Outloo3 or attitude of management

APPRAISAL B6 TRAITS F CHARACTERISTICS #$e important met$ods E tec$ni6ues and procedures falling into t$e trait approac$ include t$e ran3ing met$od- grap$ic rating scale met$od and forced c$oice met$od of rating+

!s regards t$e ,Ran3ing plans. t$e basic idea of ran3ing as put b" Daltan * McFarland is ,to distribute t$e individual being rate along an order of merit from best to t$e poorest or from most to lest- on one or more c$aracteristics. Ran3ing is a simple met$od and it loosel" corresponds to ever" da" general appraisals or evaluations+

#$e supervisors for t0o or more raters c$ec3s on eac$ cared t$e name of t$e emplo"ee t$e supervisor considers to be t$e better one+ ! calculation can be t$en be made s$o0ing 0$ic$ emplo"ee $as received t$e most c$ec3s do0n to t$e one 0$o $as received t$e least+

&elter Dill Scott+ &$o pioneered in introducing performance rating plans into industr" before 0orld 0ar %- also developed a variation of t$e ran3ing met$od 3no0n as ,Man to Man 'omperison Scale. 0$ic$ greatl" influence ratings in industr"+

!ccording to Mic$eal + ucius- suc$ ,man to man. or ,0or3er to 0or3er. s"stem of rating ma" be improved in t0o 0a"s+ /i1 /ii1 Several factors suc$ as initiative - co4operations and dependabilit" ma" be used in rating 0or3er to 0or3er and t$ose factor ratings ma" t$en be arranged to establis$ an overall grade+ %nstead of using actual emplo"ees as standards for best- above average and so fort$- ideal descriptions ma" be developed+

Over t$e "ears- t$ere $ave been substantial c$anges in grap$ic rating scales viz- improvement in t$e design of t$e instruments and administration of t$e s"stem1 0it$ a vie0 to en$ance t$eir validit" and reliabilit" and t$us in addition to continuous scales- discontinuous scales- reversed scales- numerical 0eig$ting s"stems- etc+ $ave been adopted+

%n 7continuous rating scales2- t$e degree of eac$ trait are mar3et off in e6ua units along eac$ scale as s$o0n in Figure9

%nitiative D Resistance 'o4operativeness D Obstructionist > Difficult to $andle :D Sometimes 'o4operative :> 'o4operative ;D Hig$ 'o4 operative > Often Reluctant :D Sometimes Hesitant :> Open minded ;D

Feaders$ip E Motivation D Discourages Development > Fittle %nterest in Developing Personnel :D Sometimes %neffective :> *ffective ;D Develops Outstanding Personal

Despite various variations- most of met$ods E tec$ni6ues $ave t$e follo0ing si5 basic elements9 :+ #$e superior and t$e subordinate jointl" plan t$e subordinates tas3s and responsibilities+ #$e" focus on t$e 3e" responsibilities and critical elements of job as indicated b" e5pected results ;+ #$e subordinate prepares in advance $is targets and objectives for a si5 mont$s or a one "ear period+ He goes over t$e plan 0it$ $is superior- modif"ing it until $e" can mutuall" agree on it+ <+ #$roug$ mutual discussion t$e" jointl" clarif" t$e supervisors supporting and evaluating role+ =+ !t t$e end stipulated time- t$e supervisor ma3es a performance evaluating of t$e subordinates 0or3 arising t$e previousl" agreed upon targets as standards >+ Feedbac3 intervie0 in 0$ic$ t$e supervisor discusses t$e results and $is evaluations 0it$ t$e subordinate and a rene0al or reformulation of t$e mutuall" agreed as upon targets for t$e follo0ing period establis$ing a c"clical pattern+ @+ #$e s"stem deemp$asizes traits and personal c$aracteristics focusing on performance results+

Jagueness and ambiguit"- e+g+ it is difficult to measure precisel" traits li3e 7initiative2 or 7ambition2 particularl" because different raters using t$ese ma" easil" $ave t$eir var"ig interpretations+

!s observed b" Fredric3 &ic3et and Daltan * McFarland /eds+1 and Jirgil N+ Ro0land+ *ven 0$ere criteria are carefull" and clearl" defined- it is $ard to communicate t$em to t$e appraising managers and managers appl" differential understandings of t$e criteria.+

#$is loss of uniformit" of application often gives rise to assertions of unfair appraisals+ Furt$er7distortions2 ma" be introduced in appraisals b" t$e raters consciousl" or unconsciousl" in t$e form of 7biases /0$ere appraisal ma3e an unfairl" $ig$ or unfairl" lo0 judgement based on prejudice emotion or subjective opinion1 and 7mista3es2 in appraising /t$at ma" occur due to $aste carelessness- desire to avoid antagonism of subordinates etc+1

PROBLEMS F ERRORS IN AND LIMITATIONS OF APPRAISALS Since t$e forces 0or3ing against objectivit" in appraisals giving rise to man" errors are difficult to overcome- t$ere e5ist various problems in ma3ing a fair and purposeful appraisal+ Firstl"- Managers E Supervisors appraising t$eir emplo"ees are $uman being and- t$erefore- $ave strong li3es and disli3es of individuals- especiall" t$ose 0$o are close associates+

#$us ratings ma" be influenced b" personnel- emotional and ot$er factors+ Secondl"- 6uite of ten appraiser $as practical needs or goals $e $opes to ac$ieve 0it$ t$e rating results- e+g+- $e ma" desire to advance an individual 0$om $e is coac$ing or sponsoring or $e ma" desire to prevent an individual from advancing+

! number of mista3es re li3el" to occur in appraisals because of suc$ reasons+ #$irdl"- resentment against paper 0or3 on t$e part of appraisers ma" result in ,$aste or carelessness. causing errors in appraisals+

Fourt$l"- 0$ile some superiors or managers rating t$eir subordinates are in t$e $abit of rating ever"one $ig$- ot$ers tend to rate ever" one lo0+ Fastl"- central tendenc" is anot$er error in rating t$at is 0idel" found because of t$e failure of incapabilit" of t$e rater to discriminate bet0een a superior and an inferior individual+ Suc$ appraisers often believe t$at all t$eir subordinates are almost e6ual in performing t$eir tas3s or assignments+ Suc$ raters can improve t$eir observational and anal"tical s3ills t$roug$ training and e5perience+

%n general- emplo"ee evaluation or performance appraisal suffers from certain limitations suc$ as9 a1 %n man" cases a tendenc" on t$e part of appraisers? b1 Often suc$ appraisals become fault" on account of some personal bias or defect on t$e part of appraiser? c1 !n important limitation of suc$ appraisals relates to t$e possibilit" of 0$at is 3no0n as t$e ,$alo effect.+

One t"pe of ,$alo effect. e5ists 0$ere t$e individual to be rated $as some previous good or bad impressions upon t$e appraiser t$at s$ape $is current judgments of t$e over4all performance+

Remembering $is earlier good or bad impressions t$at appraiser assumes t$at t$e individual2s current performance is t$e same+ !not$er t"pe of 7$alo effect2 ma" e5ist 0$ere t$e raters judgement is influenced b" t$e 0or34team or t$e informal group 0it$ 0$ic$ t$e appraisee associates+ %f t$e 0or34team or group is not li3ed 0ell b" t$e appraiser- t$e rating of t$e individual ma" be fault" differing from $is actual performance+

d1 %t is formidable tas3 to eliminate subjectivit" /or t$e subjective element1 from suc$ appraisals 0$ile ma3ing a judgement since suc$ evaluations are fact opinions+

PERFORMANCE APPRAISALS IN INDIA ! formal and s"stematic emplo"ee evaluation E performance appraisal 0as introduced in t$e !ssociated 'ement 'ompanies /!''1 Ftd+ in :C>; 0it$ t$e introduction of an annual confidential report form+ %nitiall" one form 0as used for varied t"pe of emplo"ees- irrespective of t$eir $ierarc$ical position 0$ic$ 0as later found as inappropriate+ Subse6uentl"- t$ree t"pes of annual confidential report forms

0ere introduced to cover t$ree categories respectivel" viz+ /a1 Senior personnel- /b1 unior e5ecutives and supervisor" personnel and /c1 lo0er supervisor" and office staff+ Figure s$o0s t$e factors considered important in rating different categories of emplo"ees+

Fact-%! I&p-%ta.t i. Rati.0 Di11 % .t Cat 0-%i ! -1 E&p2-' Handling of (rievances Relations 0it$ Men 'ost consciousness Promptness of records reports+ Kualit" or !ccurac" of 0or3+ Kuantit" of 0or3 8se of &or3ing #ime %nitiative H !cceptance of Responsibilit" !bilit" to learn

! at A. C. C. Lt/.

!bilit" in Ma3ing Decisions Feaders$ip 8nderstanding H 'onformit" 0it$ Policies udgement

8nderstanding of and conformit" of Procedures 'o4operation 0it$ ot$ers Fo"alt" Decisions udgement Nno0ledge H *5ecution of Responsibilities !ttitude to 0or3

*mplo"ees Relations

!bilit" to 0or3 0it$ ot$ers Safet" on t$e job 'onduct on t$e ob 'are and 8se of 'ompan" Propert"

Delegation !bilit" to communicate !bilit" to Run Meetings Sociabilit" Nno0ledge H *5ecution of Responsibilities !ttitude to 0or3 Fo"alt" initiative

#$e confidential reports $ave to be completed b" persons e5ercising actual line aut$orit" over t$e rates+ %n case of a senior e5ecutive- t$e initiating officer for preparing and completing t$e confidential report could be t$e Division Head and t$e revie0ing officer could be t$e !ssistance Managing Director or Managing Director+ %n some organisatoins e+g+ at Sandoz /%ndia1 Ftd+ personnel appraisals are made in respect of managers for t$e management development plan and merit ratings is done in case of operatives+

"UESTIONS :+ &$at is meant b" Merit4Rating or Performance !ppraisalM Discuss its importance+

;+ &$at purposes or objectives ma" be soug$t b" merit4rating or performance appraisal s"stems in modern organisatoinsM <+ Outline t$e important prere6uisites or rules of an effective appraisal plan or programme+ &$at in "our opinion s$ould be a good appraisal polic"M =+ Describe briefl" t$e various met$ods or tec$ni6ues of merit4rating or performance appraisal+ Offer "our comments on t$eir relative usefulness+ >+ State t$e main errors or problems in and limitations of personnel appraisals+ Ho0 ma" t$ese be removedM @+ &$at are t$e principal difficulties or obstacles to an effective appraisal s"stemM Ho0 can t$e" be overcomeM

LESSON 11 > 13 8AGE AND SALAR6 ADMINISTRATION

METHODS OF 8AGE PA6MENT #$ere are t0o basic met$ods of 0age pa"ment+ !ll 0or3ers ma" be paid on t$e basis of time t$at $e spends on $is job- or $e ma" be paid on t$e basis of 6uantit" of output turned out b" $im+

#$e various met$ods of 0age pa"ment ma" be classified as follo0s9

M t,-/! -1 8a0 Pa'& .t 'onventional Met$od %ncentive )onus Met$od

#ime &age

Price &age

Personal %ncentive )onus Sc$emes #ime )ased %ncentive )onus Sc$emes Halse" Plan Ro0an Plan *merson Plan )edeau5 PPlan Production )ased %ncentive )onus Sc$emes #a"lor2s Differential &age Plan Merric3 Plan (antt Plan

(roup %ncentive )onus Sc$emes Price Man Plan Scanlon Plan Fincoln Plan

#$e first met$od is 3no0n as #ime 0age or #ime Rate s"stem and t$e second as Piece 0age or Piece Rate s"stem+

&age s"stems currentl" in use are mostl" eit$er modifications or combination of time rate and price rate met$ods of 0age pa"ment+ Primaril" principles of t$e t0o s"stems ma" also be found at t$e base of various incentive sc$emes

CON$ENTIONAL METHODS OF 8AGE PA6MENT 1. TIME RATES #ime rates s"stem is variousl" described as Da" 0or3 s"stem or #ime Rate s"stem of 0age pa"ment+ !n important feature of t$is s"stem is t$at 0ages are paid on t$e basis of t$e time spent b" a 0or3er on $is job- no account being ta3en of t$e 6uantit" of 0or3 done b" $im+

#$us- it ma" be said t$at t$e emplo"ee gets paid for t$e time sold b" $im to $is emplo"er+ #$e time t$at an emplo"ee spends on $is job ma" be measured in terms of $ours- 0ee3s- mont$s- or "ears+ Ho0ever- 0$en 0e sa" time 0ages- 0$at 0e generall" mean in pa"ment made at a rate on attendance per $our+ On t$e ot$er $and- salaries denote pa"ment at a rate on attendance per 0ee3 or mont$+

#$e longer a 0or3er remain on $is job- t$e $ig$er is t$e pa"ment $e receives+ )ut as said earlier- t$e 6uantit" of 0or3 done b" $im is immaterial+ #$e emplo"er ta3es all t$e gains or losses arising from variations in a 0or3er2s output+

#$e formula for calculating 0ages under t$is s"stem is as follo0s9 #otal *arnings O Number of $ours- da"s- etc+- 0or3ed 5 Rate per $our- da"- etc+

#$ere is no $ard and fast rule governing t$e determination of time rates or t$e units of time to 0$ic$ t$e" relate+ For $ig$er positions- not onl" t$e rates are $ig$- but also t$e unit of time to 0$ic$ t$e" relate is longer+ %t is- or e5ample- common to engage $ig$ officials li3e managers under annual contracts+ Needless to sa"- suc$ persons are paid substantiall" $ig$er rates+ On t$e ot$er $anduns3illed 0or3ers ma" be engaged on dail" basis and t$e rates of 0ages in t$eir case ma" also be 6uite lo0+

E$ALUATION 7 MERITS 1. Si&p2icit' #ime rates are simple to understand and eas" to operate+ Since 0ages are lin3ed to t$e unit of time spent on a job- it is not necessar" to 3eep records of output produced b" individual 0or3ers+ %t onl" involves determinations of standard $ours of 0or3 and t$e rates at 0$ic$ different categories of 0or3ers are to be paid+

3. S c;%it' &ages under t$is s"stem being lin3ed to t$e spent on a job- 0or3ers are not re6uired to rus$ to reac$ a particular level of output+ &$atever t$e 6uantit" of output- t$e" are assured of t$eir 0ages+

3. B . 1icia2 t- ( 0i.. %!

For fres$ers- time guarantee a minimum remuneration even t$oug$- in t$e beginning- it ma" not be possible for t$em to reac$ t$e re6uired level of output+

5. Ai/ t- &p2-'

&-%a2

Since 0or3ers are not re6uired to produce a particular 6uantit" in a given time- t$e" are under no p$"sical or mental strain+ #$e" can devote a greater attention to t$e 6ualit" of goods produced b" t$em+

5. O.2' a2t %.ati* i. c %tai. ca! ! #ime rates present t$e onl" alternative of 0age pa"ment in certain cases+ For e5ample9 /a1 &$ere 6ualit" of 0or3 is more important t$an its 6uantit" /b1 &$ere specialized s3ills are re6uired to perform a job+ /c1 &$ere dela"s and interruptions in 0or3 cannot be avoided /d1 &$ere t$e nature of job fre6uentl" c$anges /e1 &$ere t$e 0or3 is not standardized? and /f1 &$ere it is be"ond t$e 0or3er2s capacit" or capabilit" to increase t$e volume of output- t$ere is not ot$er 0a" e5cept to follo0 time rates+

DEMERITS 1. U.!ci .ti1ic #ime rates place e5cessive emp$asis on t$e 0or3er2s time and turn a blind e"e to $is performance+ )ecause 0ages are not related to output- a certain amount of subjectivit" and arbitrariness ma" be noticed in t$eir fi5ation+

3. Lac? -1 i.c .ti* 1-% ( tt % <-%? #$is is b" far t$e biggest dra0bac3 of time rates+ #$e" offer an encouragement for better performance on t$e part of 0or3ers+ !ll 0or3ers 0$et$er competent or incompetent- de5terous or dullards are treated ali3e in respect of 0age pa"ment+ #$ose 0$o are capable are not 3een to s$o0 better results because t$ere is no incentive for t$em to do so+

#o ma3e matter 0orse- emplo"ers also tent do fi5 t$e minimum possible time rate for eac$ categor" of 0or3ers+ #$e" do so ta3ing into account t$e rate deserved b" t$e dullest among t$e 0or3ersconvenientl" forgetting t$at t$e same rate 0ould also be applicable to t$e most competent and capable among t$em+ #$us- t$e emplo"er 0$o pa"s onl" t$e rate carried b" t$e poorest man ma" get onl" t$e output $e pa"s for- even from $is best men+.

3. Di11ic;2t t- / t %&i. 2a(-;% c-!t!

)ecause 0ages are not related to output- emplo"ers face t$e difficult" of controlling t$e labour costs+ t$is is because t$e" are never sure of producing enoug$ to cover all t$eir costs- including t$e labour costs+ For proper planning and control of cost per unit of output a definite correlation bet0een 0ages H 6ualit" of output- must be establis$ed+

5. L .0t, .i.0 -1 <-%? p%-c !! Since 0or3ers are paid in relation to t$e time t$e" spend on t$eir jobs- t$e" tend to undul" prolong t$e 0or3 process so t$at t$e" are assured of 0ages over a continue period of time+ #$us- t$e" deliberatel" resort to ,go4slo0. tactics- t$us causing dela" in production and increase in over$ead costs+

5. A/* %!

11 ct -. @;a2it'

%t is not t$at time rates affect t$e 6uantit" of output alone+ #$ere being no incentive for 0or3ers to maintain and improve t$e 6ualit" of t$eir output- t$e enterprise $as to put up 0it$ production of sub4 standard goods+

A. G% at % .

/ 1-% !;p %*i!i-.

)ecause time rates offer no incentive to 0or3ers to improve or increase t$e 6uantit" or 6ualit" of t$eir output- t$e" cast greater responsibilit" on foreman to supervise t$eir subordinates to ensure t$at t$e" put in t$eir best efforts for t$e purpose+ %nevitabl"- t$is adds to over$ead cost of production+

3. PRICE RATES Price rates s"stem ma3es t$e 6uantit" of 0or3 as t$e basis of 0age pa"ment+ ! fi5ed sum per unit of goods is given to a 0or3er irrespective of t$e time ta3en b" $im+ #$e formula is9

#otal *arnings

O 8nits produced 5 Rate per unit

#$us- piece rates represent a pa"ment of so muc$ per unit produced+ )ut t$ese can be applied onl" in case of jobs 0$ic$ are capable of being measured in p$"sical terms and can be standardized+

/a1 Piece rate 0it$ guaranteed da" rate+ /b1 Differential piece rates

E$ALUATION 7 MERITS 1. 8a0 ! 2i.? / t- -;tp;t !n important c$aracteristic of t$is s"stem is t$at 0ages are paid in connection to t$e levels of output ac$ieved b" 0or3ers+ !s suc$- it offers considerable inducement to 0or3ers to produce more+

3. R <a%/ 1-% & %it #$e main aim of t$is s"stem is to increase t$e output b" giving 0or3ers an incentive to produce more+ #$us- 0or3ers possessing merit- s3ills or talents $ave t$e opportunit" to secure $ig$er 0ages+ %n t$e process- t$e" are also enabled to contribute t$eir utmost to ma5imizing t$e total output of t$e enterprise+

3. C %tai.t' i. p2a..i.0 a./ c-.t%-2 &it$ 0age rates lin3ed to output- management is enables to plan and control production 0it$ greater degree of certaint"- production targets can be confidentl" set and successfull" ac$ieved+

5. N- !c-p 1-% 0-E!2-< tactic! 8nder t$e piece rate s"stem- 0or3ers 0ill $ardl" ever t$in3 of resorting to go4slo0 tactics+ #$is because doing so 0ould damage t$eir o0n interests+ %f t$e rate of out put declines so 0ill t$e amount of 0ages pa"able to t$em+

5. Litt2 .

/ 1-% !;p %*i!i-.

!s 0or3ers are t$emselves 6uite 3een to complete t$e jobs entrusted to t$em- t$e need for supervisions greatl" reduced+ %t results in a considerable saving on over$ead costs+

A. E11 cti* c-!t c-.t%-2 )esides increasing production 0it$out an" proportion increase in over$ead costs- piece rates are also favoured because t$e" simplif" t$e measurement of labour costs+ Management is t$us enabled to forecast as to t$at effect a given increase in output s$all $ave on labour costs+

DEMERITS 1. I.! c;%it' 8nder t$is s"stem- no minimum 0age is guaranteed to 0or3ers+ #$e" are onl" paid in proportion to 0$at t$e" produce+ )ut it is not t$at a 0or3er can al0a"s reac$ a certain level of output+ #$ere ma" be dela"s and interruptions in $is 0or3+ #$e resulting decline in output 0ill mean a decline in 0ages also+ #$us- if dela"s and interruptions are due to ineptitude on t$e part of 0or3ers- t$e decline in t$eir 0ages can be perfectl" justified+ )ut 0$at if t$ese are due to factors be"ond an"bod"2s controlM Strictl" spea3ing- under piece 0age s"stem 0or3ers 0ill even t$en be paid lo0er 0ages+

3. U.!;ita(2 1-% ( 0i.. %! -% ( 2-< a* %a0 <-%? %! #$ose 0$o are ne0 to t$eir jobs or not competent enoug$ to reac$ t$e desired levels of output- are put to considerable disadvantage under t$e piece 0age s"stem+ #r" as t$e" mig$t- t$e" 0ill find it difficult to produce enoug$ to assure t$em a certain minimum 0age+ %n an" case- t$e" cannot come an"0$ere near t$ose 0$o are superior to t$em in terms of abilities and s3ills+

3. D c2i. i. @;a2it' Piece rate s"stem of 0age pa"ment induces 0or3ers to produce as muc$ as t$e" can regardless of t$e 6ualit" of t$e goods to be produced+ %nevitabl"- t$is results in production of sub4standard goods unlessof course a number of supervisors are emplo"ed to c$ec3 t$e 0or3 in order to ensure t$at a minimum standard of 6ualit" is maintained+

5. U.!;ita(2 i. c %tai. ca! Piece rate s"stem of 0age pa"ment cannot be follo0ed 0$ere t$e 0or3 is of a non4standardized or diversified nature+ Similarl"- 0$ere 0or3ers cannot effectivel" control t$e volume of t$eir output- or 0$ere t$e performance of 0or3 demands specialized s3ills- or dela"s and interruptions are in$erent in t$e conditions of emplo"ment- t$is s"stem of 0age pa"ment ma" not be ver" effective !nd- of course0$ere 6ualit" of output is more important t$an its 6ualit"- piece rates ma" proves to be self4defeating+

5. Sp

/i.0 ;p -1 <-%? %!

)ecause increase in earnings is directl" in proportion to t$e increase in output- 0or3ers fre6uentl" resort to over 0or3 t$us overstraining t$emselves 0$ic$ adversel" affects t$eir $ealt$+ %n t$e event- t$e number of accidents increases+

A. E:c !!i* / p% ciati-. -1 &ac,i. %' %n t$eir zeal to produce more so as to be assured of increased earnings 0or3ers are not ver" particular about proper $andling of t$e mac$ines and tools place at t$eir disposal+ #$eir carelessness in t$is respect ma" result in $ig$er depreciation of mac$iner" and e6uipment+

B. # a2-;!' a./ /i!!ati!1acti-. Since no t0o 0or3ers can be e5actl" ali3e in t$eir proficienc" at 0or3- under piece 0age s"stem t$ere is bound to be some difference in 0ages earned b" t$em+ #$is ma" cause jealous" and dissatisfaction among t$ose 0$o are not able to earn as muc$ as t$eir more efficient and competent fello040or3ers+ #$is ma" adversel" affect t$eir relations 0it$ one anot$er+ )ecause piece 0age s"stem ma" produce disunit" and lac3 of solidarit" among 0or3ers- trade unions are generall" opposed to it+

C. C-&p2icat / & c,a.i!& Piece rate s"stem of 0age pa"ment tends to become 6uite complicated- particularl" because it involves proper maintenance of records as to output in t$e case of eac$ individual 0or3er+ Particularl" in enterprises emplo"ing t$ousands of 0or3ers- it ma" be 6uite e5pensive and difficult to administer+ !gain- it necessitates standardization of ever"t$ing under t$e sum4products- 0or3ing conditionss"stem of measurements and control of performance b" 0or3ers- mac$ines tools and 0$at not+ #$is considerable planning as also e5penditure in terms of time and mone"- 0$ic$ man" enterprises mig$t not be able to afford+

INCENTI$E BONUS PLANS !n incentive plan or met$od provides a s"stem of 0age pa"ment 0$ic$ offers an inducement in t$e form of a bonus to encourage 0or3ers to maintain $ig$ levels of output+ From t$is vie0 point- piece 0age s"stem ma" be said to be t$e most effective plan+ )ut an incentive is more in t$e nature of an e5pected re0ard for better performance+ Suc$ better performance ma" be inform of e5ceeding $e average output level in a given time- ac$ieving t$e average t$e average output level in a s$orter duration- or 0or3ing in a manner t$at improves 6ualit"- or brings do0n costs+

9INDS OF INCENTI$E BONUS SCHEMES !s alread" said- incentive bonus sc$emes ma" be t0o t"pes9 :+ Personal or %ndividual %ncentive )onus Sc$emes and ;+ (roup %ncentive )onus Sc$emes

1. INDI$IDUAL INCENTI$E BONUS SCHEMES 8nder t$ese sc$emes- t$e individual 0or3er is re0arded for $is outstanding performance or for ma3ing efficient use of capital and e6uipment+ !ccordingl"- individual incentive bonus sc$emes ma" be furt$er sub4divided into /a1 time4based incentive bonus sc$emes- or /b1 production4based incentive bonus sc$emes+ 8nder time4based incentive bonus sc$emes- eac$ piece of 0or3 is assigned a standard time- and t$e 0or3er2s bonus is based on t$e percentage of time saved+ 8nder production based bonus sc$emes- on t$e ot$er $and- eac$ 0or3er is given a definite tas3 and bonus is paid to $im onl" if $e completes t$e tas3 0it$in t$e standard time+

(a) Ti& E(a! I./i*i/;a2 I.c .ti* B-.;! Sc, & ! (i) Ha2! ' P2a.

%t 0as first introduced b" F+ !+ Halse"- a mec$anical engineer in !merica- in :BC:+ %t is a sample combination of time and piece 0age plan of 0age pa"ment+

8nder t$is plan- bonus is paid on t$e basis of time saved+ ! standard time is set for eac$ job- process or operations+ %f a 0or3ers ta3es t$e standard time to do it- or event e5ceeds t$e standard limit- $e is paid normal 0ages calculated at t$e time rate+ %f $e completes $is job in less t$an t$e standard time- $e is paid a bonus e6ual to >DP of t$e value of time saved+ #$us- t$is s"stem see3s to divide t$e benefit of increased productivit" bet0een emplo"er and 0or3er+

! 0or3er2s bonus and total earning under t$is plan are calculated as follo0s9

)onus

>DP /#ime saved 5 #ime Rate1

4 4 4 #otal *arnings

>DP / : Hour 5 Rs+ ;1 >DP /Rs+ ;+DD1 Rs+ :+DD 4 @ Hours 5 Rs+ ;+DD Q Rs+ :+DD 4 Rs+ :<+DD

(ii)

R-<a. P2a.

%t is similar to Halse" plan+ #$e onl" differences is in t$e met$od of calculation of bonus+ #$us- under Ro0an plan- in addition to t$e ordinar" time rate- t$e 0or3er received a bonus of $alf t$e time4rate on time saved+ #$e amount of bonus is e6ual to t$e percentage of time saved to t$e standard time allo0ed as multiplied b" t$e time 0ages+

(iii)

E& %!-. P2a.

%t mar3s a combination of a guaranteed fi5ed da" 0age and a differential piece rate+ ! certain output is regarded as t$e standard for eac$ 0or3er+ %f t$e 0or3ers ac$ieved just t0o4t$irds of t$e standard output- $e is treated as a normal 0or3er and is paid t$e guaranteed minimum 0age but no bonus+ !s $e crosses t$e t0o4t$irds mar3- $e becomes entitled to bonus 0$ic$ increases progressivel" as $e approac$es t$e standard output+

#$e main features of t$is s"stem ma" be summarized as follo0s9 /a1 Minimum da" 0age is guaranteed to ever" 0or3er /b1 #$e standard output fi5ed in t$e case of eac$ categor" of 0or3er is regard as t$e sign of :DDP efficienc"+ /c1 ! 0or3er becomes eligible for bonus onl" 0$en $is output e5ceeds t0o4t$irds- or @@+AP of t$e standard output+

(i*)

B / a;? P2a.

%t see3s to appl" a uniform s"stem of bonus pa"ments to 0or3 of differing degrees of difficult"+ For t$is purpose- eac$ t"pe of 0or3 is t$oroug$l" anal"zed and- considering t$e strain involved in performing ita proportion of time is allo0ed for rest+

PRODUCTION BASED INCENTI$E BONUS SCHEMES (i) Ta'2-%H! Di11 % .tia2 8a0 P2a.

%t is one of t$e earliest of incentive 0age plans+ %t 0as devised b" Frederic3 &+ #a"lor as a part of t$e sc$eme of scientific management+ %n essence- it is a piece rate met$od of 0age pa"ment 0$ere t$e rate of pa"ment increases as t$e 0or3er speeds up $is rate of 0or3ing+ %n t$is respect- it is vitall"

different from time4based incentive bonus sc$emes under 0$ic$ t$e rate falls t$e more 6uic3l"- t$e 0or3 is completed+

#$e #a"lor s"stem- t$erefore- offers an even greater incentive t$an straig$t piece rates to t$e reall" fast 0or3ers+ #$e standard tas3 is set after a careful time and motion stud"+ #$ere are t0o piece rated one for sub4 standard performance and t$e ot$er for t$e standard or above standard performance+ #$e main features of t$is sc$eme are as follo0s9 a+ Minimum dail" 0ages are not guaranteed b+ Standard time is set for t$e completion of t$e standard tas3 c+ #$ere are t0o piece rates+ %f a 0or3er performs t$e tas3 0it$in t$e standard time- $e is paid at t$e $ig$er piece rate+ %f $e e5ceeds t$e standard time limit- $e receives t$e lo0er piece rate+ Fet us ta3e an e5ample+ Suppose- t$e standard output is fi5ed at :D units a da"- t$e t0o piece rates are /a1 Rs+ :+DD per unit for :D units or more- and /b1 A> paise per unit for less t$an :D units+

#$us- if a 0or3er produces :D units $e 0ill get Rs+ :D+DD and if $e produces :; units- $e 0ill get Re+ :;+DD+ )ut incase $e is able to produce onl" B units- t$e lo0er piece rate of A> paise per unit 0ill be applied to $im and $e 0ill $e paid Rs+ @+DD onl"+

(ii)

M %%ic?H! M;2tip2 Pi c Rat P2a.

%t is an improved version to #a"lor2s differential 0age plan+ &$ile it is less $ars$ on beginners or less efficient 0or3ers- it is also generous to0ards t$e more efficient ones+ Fi3e #a"lor2s plan- $ere also a standard tas3 is set for 0or3ers+ #$e difference is in respect of t$e number of piece rates+ %n #a"lor2s plan t$ere are t0o piece rates- $ere t$ere are t$ree+

(iii)

Ga.ttH! Ta!? S'!t &

#$is s"stem of 0age pa"ment is named after H+ F+ (antt an !merican 0$o $ad first introduced it+ Nno0n as t$e tas3 bonus s"stem- it offers- t$e 0or3er a ver" large bonus if a specified piece of 0or3 is accomplis$ed 0it$in a certain time+ )ut t$e tas3 is ver" severe on usuall" double t$at 0$ic$ is e5pected of an average 0or3er+ !not$er severe feature is t$at even if a 0or3er fails to accomplis$ t$e tas3 b" a negligible margin- $e is not paid an" bonus+

#$e man features of t$is s"stem are9 a+ %t combines t$ree in one i+e+- time rate- differential piece rate and bonus+ b+ %t guarantees minimum dail" 0age c+ %f t$e standard tas3 is completed 0it$in t$e prescribed time- t$ere is a bonus 0$ic$ is usuall" at a ver" $ig$ rate+ d+ #$e bonus is a fi5ed percentage of t$e time ta3en

e+ %f a 0or3ers accomplis$es t$e standard tas3 0it$in t$e stipulated time $e is paid a bonus 0$ic$ is usuall" R ;DP of $is time rate+ %n case $is performance is better t$an t$e standard- $e is paid at a $ig$er pieces rate on t$e 0$ole of $is output+

ESSENTIALS OF A GOOD INCENTI$E PLAN 1. SUITABLE CLIMATE Success of an incentive plan 0ill greatl" depend on t$e 3ind of relations bet0een management and 0or3ers+ %n case t$e relations are $app" and free from suspicions and tension- an" incentive plan ma" 0or3 miracles in t$e enterprise+ On t$e contrar"- if t$ere is mutual distrust and animosit"- 0or3ers ma" ta3e t$e introduction of a 0age incentive plan as "et anot$er attempt b" management to force t$em to 0or3 $arder+

3. COMPLETE INFORMATION AS TO GOALS &or3ers s$ould be properl" informed about 0$" a particular incentive plan is being introduced for t$em+ %f t$e plan emp$ases 6ualit" or 6uantit" of production- 0or3s s$ould be told about it in clear terms+ %f 6uantit" and 6ualit" of production are to be given e6ual 0eig$tge- t$is must be made sufficientl" clear or else 0or3ers ma" concentrate on increasing t$e 6uantit" of output- being indifferent of t$e 6ualit"+

3. SIMPLICIT6 #$e incentive sc$eme s$ould be eas" to understand and simple to operate+ %n case it is complicated0or3ers 0ould not trust it and t$e management ma" find it difficult to operate+

5. #UST AND E"UITABLE #$e incentive sc$eme s$ould ta3e into account t$e s3ills and abilities of all 0or3ers for 0$om it is devised+ %f it is undul" biased in favour of efficient and e5perienced 0or3ers- it 0ill lac3 motivations for t$ose 0$o are not so gifted+ On t$e ot$er $and- if it see3s to favour ine5perience and inefficient 0or3ers- outstanding and ambitious 0or3ers a" nto be suitabl" motivated b" it+

5. FLE4IBLE !n incentive sc$eme s$ould be fle5ible enoug$ to be adjusted to t$e needs of an" c$ange in t$e situation+ Similarl"- it s$ould be possible to rectif" an" mista3es or s$ortcomings t$at ma" $ave been discovered during its operations+

A. ATTRACTI$E %ncentive pa"ments under t$e sc$eme s$ould be ade6uate to attract t$e emplo"ees to be covered b" it+ %f a 0or3er alread" earning Rs+ >DD a mont$ is to get an e5tra benefit under an incentive sc$eme to t$e time of Rs+ :DD- $e 0ould be tempted to perform as re6uired+ )ut- if t$e e5tra benefit is not li3el" to e5ceed Rs+ ;>- $e mig$t not deem it 0ort$ 0$ile to strain $imself for suc$ a pett" gain+

B. ECONOMICAL #$e cost of operating an incentive sc$eme s$ould not be measured onl" to terms of additional pa"ments to 0or3ers+ #$e e5pense incurred in carr"ing out job evaluation- 0or3 measurementmet$ods improvement- additional supervision and control- s$ould also be ta3en into account+ #$ust$ere before launc$ing an incentive sc$eme- it s$ould be ensured t$at t$e benefits accruing from it 0ould full" cover t$e increase in e5penses+

C. CONDUCTI$E TO 8OR9ERHS HEALTH AND 8ELFARE !n incentive sc$eme s$ould not aim at over straining 0or3ers+ %f it offers increasingl" $ig$ benefits for e5tra output- 0or3ers ma" be tempted to 0or3 $arder t$an t$eir capacit"+ &$ile t$is ma" be disastrous it 0ould be better t$erefore to fi5 a ceiling on t$e ma5imum earnings b" 0a" of incentives+

D. Attai.a(2 !ta./a%/! #$e standards set b" an incentive sc$eme s$ould be neit$er too difficult nor too eas" to attain+ %f t$e standard tas3 is too toug$- 0or3ers ma" prefer to $ave t$eir pre4incentive earnings t$an over strain t$emselves to perform an apparentl" unattainable tas3+ On t$e ot$er $and- if t$e tas3 is too eas"- it ma" defeat t$e purpose for 0$ic$ t$e sc$eme is launc$ed+ %n t$at case it 0ould also involve a $eav" burden b" 0a" of additional pa"ments to 0or3ers+

STEPS TO BE TA9EN BEFORE INTRODUCTION OF AN6 INCENTI$E SCHEME :+ Reasonable levels of output ;+ &or3 and met$ods stud" <+ Stabilit" =+ Read" availabilit" of inputs >+ Proper mac$iner" to $andle all grievances @+ *valuation+

GROUP INCENTI$E BONUS SCHEMES 8nder personal incentive bonus sc$emes- bonus is paid to a 0or3er on t$e basis of $is individual performance- t$e amount of bonus pa"able to an" 0or3er being not affected b" t$e performance of $is co40or3er+ 8nder group bonus sc$eme- $o0ever bonus is calculated on t$e collective production is dependent on t$e collective effort of a group of 0or3ers as a 0$ole+ %n enterprises engaged in mass production or assembl" t"pe of 0or3- for e5ample radio- television- cotton te5tiles- etc+ a team of 0or3ers is emplo"ed on a number of diverse operations+ #$e 0or3 done b" a particular 0or3 is li3ed to t$at done b" one or more of $is colleagues in t$e same or ot$er departments+ !s suc$- it ma" not be possible to measure and evaluate t$e performance of eac$ individual 0or3er+ 8nder t$ese circumstances- for t$e purpose of bonus pa"ment- 0or3ers in a group are considered as a composite unit and bonus to eac$ 0or3ers is paid on t$e basis of performance of $is group+

SUITABILIT6 OF GROUP BONUS SCHEME

(roup bonus sc$eme ma" be t$e onl" alternative in t$e follo0ing cases9 a1 &$ere it is not possible to measure t$e performance of eac$ individual 0or3er+ b1 &$ere t$e number of 0or3ers constituting a group is not ver" large+ c1 &$ere t$e 0or3ers constitution a group possess t$e same or e6ual s3ills and abilities+ d1 &$ere t$e aim is to provide incentive to indirect 0or3ers and e1 &$ere t$e finis$ed product is t$e result of collective efforts of a group

T6PES OF GROUP INCENTI$E SCHEMES #$ere are different t"pes of group incentive sc$emes+ %mportant among t$em are as follo0s9 :+ Priest man Plan ;+ Scanlon Plan <+ Productive )argaining =+ 'o4partners$ip >+ Profit4s$aring

PROFIT SHARING #$e aim of profit s$aring is to give emplo"ees an incentive to increase t$eir output as also to bring about $ealt$" and mutuall" beneficial emplo"er4emplo"ee relations$ip+

CHARACTERISTICS OF PROFIT SHARING #$e follo0ing are t$e main features of profit s$aring9 :+ Profits of t$e enterprise are s$ared bet0een emplo"ers and 0or3ers on t$e basis of an agreement bet0een t$e t0o parties+ ;+ #$e pa"ment arising form profit s$aring is over and above t$e normal 0ages paid to 0or3ers+ <+ #$e pa"ment is made after ascertaining t$e net profits of t$e compan"+ #$us it is not a part of t$e cost of production or a c$arge on profits+ =+ #$e pa"ment is made onl" 0$en t$e profits cross a certain level+ *ven so- it is generall" paid ever" "ear+ >+ #$e pa"ment is based on seniorit" and E or 0age level of eac$ individual emplo"ee+ @+ #$e pa"ment represents a re0ard for group effort and efficienc" and ti is made to all grades of emplo"ees+

E$ALUATION

MERITS 1. H a2t,' &p2-' % &p2-' % 2ati-.!

!n important advantage of profit4s$aring is t$at it promotes $ealt$" emplo"er4emplo"ee relations+ #$e fact t$at profits justl" treated as at lease partl" t$e result of emplo"ees $ared 0or3 and efficienc" are not 0$oll" and e5clusivel" meant for t$e emplo"er- $as a $ealt$" effect on emplo"ees+ t$e" are less inclined to go on stri3e or resort to ,go4slo0. or ,0or34to4rule. tactics because t$e" 3no0 t$at doing so 0ould $ave and adverse effect on t$e profitabilit" of t$e enterprise 0it$ t$e result t$at t$eir o0n s$are in it 0ould also be reduced+

#$us- instead of labour unrest and strife- t$ere develops a communit" of interests to t$e mutual advantage of bot$ t$e emplo"er and t$e emplo"ees+

3. I&p%-* & .t i. p%-/;cti*it' )ecause 0or3ers develop an interest in t$e increased profits of t$e enterprise- t$e" accomplis$ t$eir tas3s more efficientl" and sincerel"+ #$e" realize t$at lo0 productivit" or rise in production costs 0ould mean lo0er profits and t$erefore lo0er rates of bonus for t$em+ For t$is reason- t$e" spare no effort to increase productivit" and reduce costs of production+

3. A//iti-.a2 a%.i.0! 1-% <-%? %! Profit s$aring results in additional earnings for 0or3ers because t$e pa"ment under it is over and above t$e normal 0ages pa"able to t$em+ #$us- t$e" are in a position to raise t$eir living standards and e5perience a sense of economic securit"+

5. R /;c / 2a(-;% t;%.-* % Pa"ment under a profit s$aring plan is largel" based on t$e lengt$ of services of eac$ individual 0or3er+ #$us- to be eligible for $ig$er bonus- an emplo"ee $as to sta" in t$e enterprise for a sufficientl" long duration+ ! rolling stone gat$ers no moss and an emplo"ee 0$o c$anges $is emplo"er ever" not and t$en cannot earn muc$ bonus+

#$us- it ma" be said t$at a profit4s$aring plan encourages a 0or3ers to $old on to $is present job- and reduces labour turn over+

5. L !! .

/ 1-% !;p %*i!i-.

!s 0or3ers develop a vested interest in t$e increased profitabilit" of t$e concern- t$e" do not need muc$ supervision to 0or3 $ard and sincerel"+ *ven 0it$out an" supervision- t$e" accomplis$ t$e assigned tas3s to t$e best of t$eir abilities and s3ills+ #$us- t$e enterprise is spared t$e need to emplo" supervisor" staff+

*ven ot$er0ise- a profit s$aring plan improves t$e 6ualit" of supervision because 0or3ers 0illingl" e5tend t$eir co4opertion to an" sc$eme t$at aims at increasing productivit" and reducing production costs+

A. E@;it' a./ !-cia2 );!tic ! profit s$aring plan results in e6uitable distribution of profits among t$e s$are$olders and emplo"ees of t$e enterprise+ ust as increased profits lead to increased dividend for s$are$olders- t$e" also result in increased earnings for emplo"ees of t$e enterprise+ #$us- o0ners and emplo"ees are put on an e6ual footing+ Moreover- e6uitable distribution of profits reduces t$e gap bet0een t$e $aves /o0ners1 and $ave nots /emplo"ees1 0$ic$ serves t$e cause of social justice+ S B. S 2 cti-. -1 ( tt % p %!-.. 2 Operation of a profit4s$aring plan acts as an inducement to 6ualified personnel to join t$e enterprise as emplo"ee+

C. P%-&-ti-. -1 t a&E!pi%it Operation of a profit4s$aring plan encourages 0or3ers in eac$ department to 0or3 unitedl" as a teamand offer 0illing assistance in solving operating problems+ #$e" 3no0 t$at stoppage of 0or3 at an" point- if not attended to 0ell in time- ma" adversel" affect t$e profitabilit" of t$e enterprise and t$us reduce t$eir s$are in it+

!ccordingl"- it leads to a sprit of camaraderie and communit" of interests 0$ic$ results in an all4round development of all t$ose associated 0it$ t$e enterprise entrepreneurs- emplo"ees- consumers and t$e communit" itself+

DEMERITS 1. M a.i.02 !! i. ca! -1 2-!! ! &$ile it is true t$at under t$e pa"ment of )onus !ct- an enterprise is re6uired to distribute a minimum bonus R B+<<P even in case of inade6uate or no profits- but it cannot be said to be t$e ultimate aim of profit s$aring because it basicall" see3s prosperit" of bot$ t$e 0or3ers as 0ell as t$e o0ners of t$e enterprise+

3. A /%a0 -. . <2' !ta(2i!, / c-.c %.! &$ere an enterprise is ne0- it cannot correctl" estimate its profits 0$ic$- in an" case- ma" not be large enoug$ to support an" 0ort$0$ile profit s$aring sc$eme+

3. E2 & .t -1 ;.c %tai.t'

Pa"ment under a profit4s$aring plan cannot be ta3en for granted+ *ven 0$en emplo"ees of a concern do t$eir best- t$e" ma" get onl" t$e legall" prescribed minimum benefit under t$is sc$eme- for t$e simple reason t$at t$ere ma" be little or no profits to be s$ared b" t$em+ Sometimes- t$is ma" be due to factors be"ond an"bod"2s control- for e5ample depression- unfavorable business conditionsuncertain demand for goods and services produced b" t$e enterprise- and so on+ )ut often lac3 of profits ma" be because of mismanagement of t$e enterprise and even in t$at case 0or3ers ma" $ave to go 0it$out additional earnings for no fault of t$eir o0n+

5. D 2i( %at !;pp% !!i-. -1 p%-1it! !n unscrupulous management ma" resort to evil practices suc$ as manipulation of accounts to reduce profits- so t$at 0or3ers are denied t$eir s$are in t$em+

5. I.a/ @;at i.c .ti*

11 ct

)ecause pa"ment under a profit s$aring plan is made onl" once or t0ice in a "ear- it lac3s t$e attraction provided b" 0ee3l" or mont$l" incentive pa"ments+ %n case emplo"ee2s s$are in t$e profits is credited to t$eir provident fund or pension account- t$e" even lose t$at little attraction+

A. E11ici .t a./ i. 11ici .t <-%? %! t% at / a2i? ! profit s$aring plan does not made an" distinction bet0een efficient and inefficient 0or3ers+ #$e" are treated ali3e+ 'onse6uentl"- efficientl" 0or3ers are discouraged and demoralized+

B. I./i11 % .c -1 t%a/ ;.i-.! Profit4s$aring plans are generall" not li3ed b" trade4unions+ )ecause in return of pa"ment under suc$ a plan- t$e management generall" e5pects t$e 0or3ers to be more lo"al to it and 3eep a0a" from trade unions+ For obvious reasons- trade unions oppose anti4labour approac$ 0$ic$ is directl" aimed at destro"ing labour unit" and solidarit"+

C. Opp-!iti-. (' &p2-' %! %f trade unions regard profit4s$aring as t$e emplo"er2s strateg" to trap 0or3ers into t$eir fold- emplo"ers regard it as an arrangement under 0$ic$ 0or3ers get an undeserved s$are in profits 0$ic$ s$ould 0$oll" and rig$tl" belong to t$e emplo"ers+ Profits- so runs t$e emplo"er2s argument- represent t$e 0ages of management- interest on capital and a re0ard for underta3ing t$e ris3 of production+ if t$e" are made to sacrifice a part of t$eir profits- 0$ere t$en 0ould be an incentive to underta3e ris3sM

"UESTIONS :+ &$at are t$e merits of #ime &age Pa"mentM

;+ Describe t$e difference bet0een #ime 0age pa"ment and Piece rate 0age pa"ment+ <+ &$at are t$e various (roup %ncentive Sc$emesM Describe t$e merits of suc$ sc$emes+

LESSON 13 EMPLO6EE EFFICIENC6 AND 8ELFARE #$e factors 0$ic$ ma" be said to promote emplo"ee efficienc" cannot precisel" be described- t$oug$ t$e effect- lac3 of efficienc" on t$e part of emplo"ees are soon perceived all around+ %n t$e c$apter on motivation- 0e $ave discussed t$at besides 3no0ledge and abilit" to perform t$e job assigned to $iman emplo"ee must also $ave effective motivational environment so as to be able to s$o0 ma5imum performance+ Our discussion on motivation centered round t$e various needs to satisf" 0$ic$ an individual is prompted to act+ #$e strengt$ of eac$ need level ma" also be different in t$e case of different individuals+ !n an" case- an individual2s urge to act in t$e manner desired of $im 0ill depend on $is e5pectanc" as regards satisfaction of a particular need felt b" $im and t$e availabilit" in t$e environment of t$e factors t$at 0ould satisf" t$e need+

*5pectanc" ma" be defined as t$e perceived probabilit" of satisf"ing a particular need based on past e5perience- 0$et$er one2s or t$at of ot$ers+

!vailabilit" ma" be defined as t$e perceived limitations of t$e environment+ %t points to t$e degree to 0$ic$ a person considers a particulars goal to be 0it$in $is reac$ so as to satisf" $is need+ #$e perception of limitations is 0$oll" subjective from t$e point of vie0 of t$e individual concerned 0$et$er t$e goal is in fact ac$ievable or not being altoget$er immaterial for t$e purpose+

FACTORS THAT PROMOTE EMPLO6EE EFFICIENC6 1. A/ @;at &-. ta%' a./ .-.E&-. ta%' ( . 1it! &$ile it is true t$at $uman beings e5perience a variet" of needs all of 0$ic$ continuousl" compete for satisfaction- t$e p$"siological needs are generall" upper most 0$ic$ are satisfied b" means of ade6uate 0ages paid in time+ Provision of fringe benefits li3e pension and provident fund sc$emes-insurance and ot$er social securit" measures see3 to satisf" $is safet" needs 0$ic$ are not less strong in competing for satisfaction once t$e p$"siological needs are satisfied+

3. S;ita(2 t--2! a./ @;ip& .t Provision of tools and e6uipment appropriate to t$e job assigned to t$e emplo"ee is also an important factor in t$e promotion of efficienc" on $is part+

3. P%-p % <-%? .*i%-.& .t #$is $as to do 0it$ t$e 0or3ing conditions of t$e emplo"ee 0$ic$ s$ould be made as congenial as possible t$roug$ provision of proper lig$ting ventilation- sanitation- temperature etc+

5. 8-%? ,-;%! *mplo"ee s$ould be given ade6uate rest pauses after t$e" $ave continuousl" 0or3ed for a certain number of $ours- proper rela5ation and recuperation is a must to sustain continued efficienc" on t$e job+

5. E11 cti* 2 a/ %!,ip Subordinates are as efficient as t$eir supervisors+ 8nder participative management 0$ere managers and subordinates $ave a free and fran3 discussion as regards common goals- major areas of responsibilit" and t$e results e5pected- productivit" is bound to increase+ Similarl"- 0$ere management $as $ig$ e5pectations of t$e subordinates- t$e performance levels on t$e part of t$e subordinates are $ig$ and vice4versa+

Side b" side- management s$ould frame stable and consistent policies and procedure as regards selection- placement- remuneration and promotion suc$ t$at t$e emplo"ees 3no0 0$at t$e" ma" aspire for- and t$e pre4re6uisites of t$e same+

A. E&p2-'

&-%a2

Morale refers to t$e groups zest and ent$usiasm for action+ %n conditions of satisfactor" gro0t$ prospects 0it$ abundant opportunities for need satisfaction- optimum utilization of individual capacit" and $ig$ productivit"- t$e morale of t$e emplo"ees is $ig$+ %n t$e absence of suc$ conditions- morale tends to decline resulting in increasing discontent- absenteeism- turnover etc+ !s Napoleon once put it+ ,%n 0ar- morale conditions ma3e up t$ree 6uarters of t$e game- t$e relative balance of manpo0er accounts for t$e remaining 6uarter.+ #$e same is b" and large true of emplo"ees of a business in t$eir tas3 of accomplis$ing t$e organizational objectives+

ROLE OF MONE6 AS MOTI$ATOR Ho0 far mone" 0ill motivate an individual to engage in t$e desired be$aviour pattern 0ill depend on 0$et$er t$e need- for t$e satisfaction of 0$ic$ $e is engaging in t$e said be$aviour pattern- is capable of being satisfied b" means of mone"+ Ho0ever- 0$ile it is true t$at people $ave different mi5ture or strengt$ of needs- mone" ma" in general be said to be an important motivating agent- it being greatl" instrumental in t$e satisfaction of t$e basic needs- suc$ as $unger- s$elter- securit" from uncertaint" etc+ !lso- 0$ile people 0$ose $unger for mone" and more mone" ma" be insatiable- a large majorit" of people vie0 mone" as a means to satisf" t$eir p$"sical and ot$er needs- and t$e" re6uire onl" so muc$ of it as ma" enable t$em to ac$ieve t$is end+ %f suc$ people are onl" offered monetar" incentives 0it$ a vie0 to perform better it 0ould- in course of time- decrease t$eir satisfaction from t$e performance of t$eir jobs- mone" being onl" an e5trinsic re0ard meant onl" for t$e satisfaction of lo0er order needs+ #o sustain continued satisfaction from jobs in t$eir case- suc$ people $ave to be provided 0it$ increased responsibilit" t$roug$ job enlargement- greater participation in decision4ma3ing- a sense of ac$ievement t$roug$ recognition b" means of promotion etc+

EMPLO6EE 8ELFARE *mplo"ee 0elfare is a 0ide term+ %t ma" mean man" t$ings to man" persons- its interpretation being different from countr" to countr" and region to region- depending on t$e ,social customs- t$e degree of industrialization- and t$e educational development of t$e 0or3er.+ )ut essentiall"- it covers all t$ose activities t$at aim at ,intellectual- p$"sical- moral and economic betterment of 0or3ers.+

)ut t$e point to note $ere is t$at emplo"ee 0elfare refers to activities 0$ic$ are over and above t$ose laid do0n b" t$e la0 of t$e land or 0$ic$ are part of t$e service contract bet0een an emplo"er and $is emplo"ees+

AIMS OF EMPLO6EE 8ELFARE Mainl"- emplo"ee 0elfare activities see3 to ac$ieve t$e follo0ing objectives9 :+ #o overcome t$e sense of monoton" and frustration among emplo"ees+ ;+ #o provide assistance in solving personal and famil" problems of emplo"ees <+ #o offer facilities for $ealt$ improvement =+ #o provide opportunities for development of individual talents >+ #o offer opening for self4e5pression and advancement @+ #o create conditions 0$ere emplo"ees are enabled to develop a broader vision of life and matters+

9INDS OF EMPLO6EE 8ELFARE MEASURES *mplo"ee 0elfare ma" ta3e various forms- important among t$em being as follo0s9

/a1 Housing /b1 #ransport /c1 *ducational medical benefits /d1 Rest and recreation /e1 'o4operative societies /f1 Da" nurseries and crec$es /g1 Paid $olida"s and sic3 leave /$1 Social insurance sc$emes /i1 Provident fund and gratuit" sc$emes /j1 Pension /31 Fegal and financial advice /l1 'lub members$ips and magazine subscriptions /m1 Sponsors$ip of sports and at$letic terms and summer camps /n1 Sc$olars$ips

Some of t$e important benefits are discussed belo09

RETIREMENT BENEFITS

!n important aim of retirement benefits suc$ as provident fund- superannuation fund- gratuit" etc+ is to ensure a minimum living standard for emplo"ees after t$e" $ave retired from service+ 8nder provident fund and superannuation fund sc$emes bot$ emplo"er and t$e emplo"ee contribute a certain amount to t$e emplo"ee2s provident fund account+ #$e amount standing to t$e credit of t$is account becomes pa"able to t$e emplo"ee in t$e event of $is deat$- retirement- or termination+

8OR9MENHS COMPENSATION 8nder t$is- for deat$- and permanent or total disabilit" resulting from job4related activities- t$e 0or3er or $is dependants are paid compensation as per t$e &or3men2s 'ompensation !ct+ #$e entire amount of suc$ compensation is borne b" t$e emplo"er+

REST PAUSES #$ese are provided for emplo"er 0or3ing in officer or factories- and doing jobs t$at re6uire great p$"sical and mental e5ertion- muc$ repetition or $eav" concentration+ #$us- 0$et$er b" t$e name of a lunc$ or tea brea3- its object is to provide an emplo"ee some pleasant diversion from $is job+

PAID HOLIDA6S 'ertain da"s in t$e "ear ma" be provide as paid $olida"s+ %n our countr"- for e5ample- %ndependence Da"- (and$i a"anti- Republic Da" and of man" important religious festivals are declared as paid $olida"s for 0or3ers+

PRI$ILEGE OR EARNED LEA$E !fter an emplo"ee $as 0or3ed in t$e enterprise for a specified period of time- $e ma" usuall" be entitled to a paid vacation+ %n %ndia- most emplo"ers allo0 a da"2s privilege or earned leave for ever" :: da"s 0or3 put in b" t$e emplo"ee+ #$e object of t$e leave is to provide t$e emplo"ee an opportunit" to ta3e time off from $is routine duties and to refres$ and recuperate $imself+

SIC9 LEA$E %t again is a case of t$e emplo"er pa"ing for da"s on 0$ic$ an emplo"ee does not report for 0or3 on account of illness+ Fi3e privilege or earned leave- sic3 leave is also calculated on t$e basis of so man" da"s ever" "ear+ Sic3 leave due to an emplo"ee is allo0ed to be accumulated up to a certain limit+

LEA$E OF ABSENCE *mplo"ees ma" be allo0ed leave of absence 0$en t$e" are deputed to attend seminars- conferenceor educational or professional courses+ PENSION

%t again is an e5ample of provision of social securit" to 0or3ers to cover t$eir financial needs after retirement+ 8nder it- a former emplo"ee or $is dependants are paid a certain fi5ed amount ever" mont$ or ever" "ear+ )ut to be eligible for t$e benefit- an emplo"ee s$ould $ave put in a certain number of "ears of service 0it$ $is emplo"er+

GROUP INSURANCE 8nder it a large number of emplo"ees are jointl" provided benefits of insurance life- $ealt$ and accident+ Often emplo"ers bear t$e full cost of providing t$e benefit+

GAMES AND RECREATION *mplo"ers ma" sponsor at$letic teams or arrange picnics and group dinners for emplo"ees and members of t$eir families+

Needless to sa"- suc$ events are meant to bring toget$er emplo"ees and t$eir families at one place so t$at t$e" ma" develop affinit" 0it$ one anot$er and a sense of belonging to t$e enterprise+

LEGAL AND FINANCIAL AID *mplo"ers ma" arrange for free guidance to emplo"ees on legal and financial matters+ Suc$ guidance s$ould not be in regard to job4related problems alone+ %t ma" also be e5tended to cover personal and famil" problems of t$e emplo"ees+

COEOPERATI$E SOCIETIES *mplo"ers ma" encourage formation of various 3inds of co4operative societies to serve t$e financial and material needs of t$eir emplo"ees+

#$us- co4operative societies ma" be establis$ed to accept deposits from emplo"ees- offer t$em loans on eas" terms and provide t$eir dail" necessities at concessional rates+

HOUSING %n areas 0$ere $ousing is scarce or onl" available at e5orbitant rates- t$e emplo"ers ma" provided subsidized or free $ousing to t$eir emplo"ees+ OTHER BENEFITS #$e emplo"er ma" provide all manner of ot$er benefits to $is emplo"ees- for e5ample- free members$ip of clubs and associations- free trip to and from t$e place of 0or3- free education to c$ildren of emplo"ees- free medical and- free sig$t seeing tours- or free tic3ets for pla"s tournaments etc+

BENEFITS OF EMPLO6EE 8ELFARE ACTI$ITIES

1. R /;cti-. i. 2a(-;% t;%. -* % %f an enterprise operates various 0elfare sc$emes- it 0ill rarel" $ave to face t$e problem of labour turnover+ %ts emplo"ees 0ould prefer to stic3 to t$eir jobs and 0ill not be easil" lured b" jobs outsider+

3. R /;cti-. i. a(! .t

i!&

#$e emplo"ees ma" also not remain absent from t$eir 0or3 for long+ *ven 0$en absence from 0or3 because absolutel" necessar"- t$e" 0ill e5ert to ma3e its duration as s$ort as possible+ !s a resultt$ere 0ill be fe0er interruption or dela"s in t$e performance of 0or3+

3. S .! -1 ( 2-.0i.0 &elfare activities tend to develop co$esiveness among emplo"ees and promote a sense of belonging and lo"alt" to t$e enterprise+

5. R /;cti-. i. 2a(-;% /i!p;t ! &elfare activities see3 to provide a $ealt$" diversionar" outlet to emplo"ees from t$e repetitiveness and unc$allenging nature of t$eir jobs+ #$is brings about a reduction in t$e number of disputes bet0een 0or3ers and management+

5. I&&;.it' 1%-& *i2! -1 i./;!t%ia2i=ati-. &it$ emplo"ees constantl" engaged in one or t$e ot$er 0elfare programmes operated for t$em- t$e" 0ill $ave less time to fall pre" to social evils li3e drin3ing- (rambling and prostitution+

A. Ba2a.c / / * 2-p / -1 &p2-'

&elfare activities enable emplo"ees to gro0 into sociall" useful citizens+ #$e" develop a communit" of interests and learn to line 0it$ t$e s$ortcomings of t$eir fello040or3ers+

RE$IE8 "UESTIONS :+ &$at factors go to determine an emplo"ee2s efficienc"M ;+ &$at is t$e meaning of emplo"ee 0elfareM Describe its aims <+ Discuss t$e benefits t$at mig$t be e5tended to emplo"ees to promote t$eir 0elfareM =+ *numerate t$e benefits of emplo"ee 0elfareM

LESSON 15 EMPLO6EE SAFET6 Since t$e beginning of t$e present centur"- emplo"ee safet" and $ealt$ problems at 0or3 $ave been engaging attention of t$e ps"c$ologists- sociologists and industrial engineers+ Ps"c$ologists are concerned 0it$ t$e t$eoretical considerations of accident causation and t$e researc$ into accident control- t$roug$ proper selection- training and education of t$e emplo"ee- and t$e social and ps"c$ological factors t$at influence t$e individual2s be$aviour in general *ngineers and safet" officers usuall" render necessar" practical advise on certain aspects of safet" in industr"+ #$e" loo3 upon prevention of accidents basicall" as an engineering problem to be tac3led t$roug$ designing of mec$anical safet" devices+ %n fact- accident prevention and safet" are inter4related and t$ereforere6uire a multi4dimensional approac$+ %ts importance $as increased because of large4scale industrialization in 0$ic$ $uman beings are subject to mec$anical- c$emical electrical and radiation $azards+ )esides- modern industr" is c$aracterized b" complicated mec$anisms intricate job re6uirements- and just moving production lines+ One of t$e important conse6uences of all t$is is increased dangers to $uman life- t$roug$ accidents+

INDUSTRIAL ACCIDENTS AND INDUSTRIAL IN#UR6 #$e life of industrial 0or3ers is full of ris3s and $azards+ *ver" "ear la3$s of emplo"ees are injured in factories- mines- rail0a"s- profits and doc3s- leading to acute ailments or permanent $andicaps+ #$e injuries ma" be caused as a result of an" unsafe activit"- or act on t$eir part or c$ance occurrences /li3e 0al3ing past a plate4glass 0indo0 just as someone $its a ball t$roug$ it1 or as a result of some unsafe 0or3 conditions or unsafe acts of emplo"ees t$emselves- or defective plant or s$op la" outinade6uate ventilation- unsafe and insufficient lig$ting arrangements- or insufficient space for movement inside t$e plant or s$op etc+

NATURE OF ACCIDENTS #$e nature of and accident ma" var" from industr" to industr"+ !n emplo"ee ma" fall from a $eig$t 0$ile engaged on a particular assignment or $e ma" be caug$t in a mac$ine 0$ile 0or3ing on it- or $e ma" fall against t$e mac$ine- or parts of a mac$ine $aving a $orizontal protruding motion ma" stri3e against $im- or e5plosives used carelessl" ma" e5plode- and injure an emplo"ee+ Suc$ accidents ma" result in disablement or deat$+

Disablement 0$et$er partial or total ma" ta3e t$e form of a loss of abilit" to 0or3 or to move+ Suc$ incapacit" ma" be partial or total+ )ot$ t"pes of disablement ma" be temporar" or permanent+ ! temporar" partial disablement reduces t$e earning capacit" of an individual in t$e emplo"ment in 0$ic$ $e 0as engaged 0$en $e sustained an injur" at t$e time of t$e accident- 0$ile a permanent partial disablement is t$at 0$ic$ reduces $is abilit" to earn an income from an" emplo"ment 0$ic$ $e 0as capable of underta3ing at t$e time t$e accident occurred+ He is entitled to compensation onl" to t$e e5tent to 0$ic$ t$e abilit" to earn is reduced or impaired+

#otal disablement- on t$e ot$er $and- is a disablement- 0$et$er temporar" or permanent- 0$ic$ incapacitates a 0or3man and ma3es it impossible for $im to engage in an" 0or3 0$ic$ $e 0as capable

of performing at t$e time of t$e accident 0$ic$ resulted in t$at disablement+ %n t$ese circumstances- $e is entitled to full compensation+

CAUSES OF ACCIDENTS !ccidents are usuall" t$e result of a combination of factors- eac$ one of 0$ic$ ma" var" from situation to situation+ #$is combination ma" be of unsafe acts and e6uipments- of people- factors and conditions+ %t $as been rig$tl" said t$at t$e accident does not $ave a single cause but a multiplicit" of causes0$ic$ are often closel" related+

!ccording to safet" e5perts t$ere are t$ree basic causes E factors t$at contribute to accidents in organisatoins+ '$ance occurrences- unsafe conditions and unsafe acts on t$e part of emplo"ee+

1. UNSAFE CONDITIONS (8OR9ERELATED CAUSES) #$ese- of one sort of anot$er- are t$e basic and biggest cause of accidents+ Suc$ causes are associated 0it$ defective plants- e6uipment- tool- materials- building etc+ #$ese can be termed 7tec$nical causes2 #$e" arise 0$en t$ere are improper or inade6uate safet" guards on mac$ines 0$en mac$ines brea34do0n 0$en improper personal protection e6uipment is installed- 0$en mec$anical or construction designs are defective and unsafe and 0$en control devices 0$ic$ $ave been installed to ma3e t$e operation of mac$ines safe and accidents free are lac3ing or defective- or 0$en t$ere is an absence of proper maintenance and supervision of t$ese devices+ #$us unsafe conditions include+ :+ %mproperl" guarded e6uipment ;+ Defective e6uipment <+ Hazardous arrangement or procedure in- and or around mac$ines or e6uipments =+ 8nsafe storage- congestion- over loading >+ %nade6uate safet" devices @+ &rong and fault" la" out- and bad location A+ %mproper illumination glare- insufficient lig$t B+ %mproper ventilation insufficient air c$arge- impure air source C+ Poor $ouse43eeping

#$e ot$er 0or3 related causes of accident are9

/a1 #$e job itself some jobs are in$erentl" more dangerous t$an ot$ers- suc$ as t$e job of man in comparison t$e t$at of t$e foreman+ Similarl"- 0or3 during t$e nig$t s$ift+ #$is is due partl" to fatigue and partl" to t$e fact t$at nig$t is t$e period 0$en one re6uires rest+ /b1 &or3 sc$edules accidents increase late in t$e da"+ #$e" do not usuall" occur during t$e earl" $ours of t$e 0or3 da"+ #$e" are more fre6uent during t$e nig$t s$ift+ #$is is due partl" to fatigue and partl" to t$e fact t$at nig$t is t$e period 0$en one re6uires rest+

/c1 Ps"c$ological climate of t$e 0or3 place- also effects t$e accidents rate+ Ps"c$ological- mental and emotional imbalances are at t$e root of several accidents+ *motionall" disturbed and mentall" pre4 occupied persons meet 0it$ more accidents t$an a normal person+

3. UNSAFE ACTS #$ese acts ma" be t$e result of lac3 of 3no0ledge or s3ill on t$e part of t$e emplo"ee- certain bodil" defects and 0rong attitudes+ #$ese acts include act li3e9

:+ Operating 0it$out aut$orit" ;+ Failing to secure e6uipment or 0arning ot$er emplo"ees of possible danger <+ Failing to use safe attire or personal protective e6uipment =+ #$ro0ing materials on t$e floor carelessl" >+ Operating or 0or3ing at unsafe speeds- eit$er too fast or too lo0+ @+ Ma3ing safet" devices in operative b" removing adjusting- disconnecting t$em A+ 8sing unsafe e6uipment- or using e6uipment insafet" B+ 8sing unsafe procedures in loading placing missing- combining+ C+ #a3ing unsafe position under suspended loads :D+ Fifting improperl" ::+ 'leaning- adjusting- oiling repairing etc+ moving a dangerous e6uipment :;+ Distracting abusing- starting- 6uarrelling- da"4dreaming- $orsepla"+

3. OTHER CAUSES #$ese cause arise out of unsafe situational and climate conditions and variations suc$ as bad 0or3ing conditions- roug$ H slipper" floors- e5ecutives glare- $eat- $umidit"- dust and fume 4 laden atmosp$ere- ver" long $ours of 0or3 unsatisfactor" be$aviour of domineering supervisors- e5cessive noise and carelessness in t$e $andling of suc$ inflammable materials suc$ as gasoline solvents- oil and grease- e5plosive etc+

:+ Goung- untrained and ne0 0or3ers generall" sustain injuries more fre6uentl" t$an older- trained and e5perienced emplo"ee+ ;+ #$ose addicted to alco$olism and drugs- and t$ose 0$o suffer from boredom and fatigue or indulge in e5$ibitionism- generall" account for a $ig$er rate of accidents+ <+ #$e 0a" t$e management motives emplo"ees affects t$e rate and fre6uenc" of accidents+ #$e tensions 0$ic$ aggressive and negative supervisors generate among t$e emplo"ees also tend to increase t$is rate and fre6uenc"+ =+ 8nmarried emplo"ees generall" $ave more accidents t$an married emplo"ees+ >+ !ccidents are more fre6uent during t$e nig$t s$ift

@+ &omen emplo"ees $ave a better safet" record t$an on t$eir male counterparts+ A+ &or3ers 0$o 0or3 under stress- or 0$o feel t$eir jobs are t$reatened or insecure- seem to $ave more accidents t$an 0$o do not+

ACCIDENT COSTS !ccidents are enormousl" costl"- cause loss directl" or indirectl" and t$e losses are bot$ visible and invisible+ #$e latter are immeasurable and cannot be valued in monetar" terms+

&$enever an industrial accident occurs- it give rise to pain for t$e victim and $is famil" and retards industrial productivit" 0$ic$- in turn- affects t$e econom" of a countr"+ %t results in financial loss for t$e emplo"ee and t$e emplo"er and t$eir pa"ments b" t$e latter in t$e s$ape of compensation+

#$e various losses 0$ic$ a management suffers because of t$e time lost due to accidents are+

:+ Directs costs- t$at is t$e 0ages of emplo"ees? si5 to ten times t$e 0ages because of t$e loss of goods and services- compensation and t$e cost of medical aid? t$e cost incurred on training a ne0 0or3er loss due to 0aste of ra0 materials- and loss of production and 6ualit" arising out of t$e e5perience and lac3 of s3ill of t$e ne0 emplo"ee+ ;+ %ndirect costs- 0$ic$ include t$e follo0ing9 a+ #$e cost 0$ic$ t$e government $as to incur because it $as to maintain a large number of factor" inspectors to c$ec3 accidents- because t$e cost of all t$ese is received b" imposing $ig$er ta3es on t$e people+ b+ #$e cost to t$e emplo"ee of t$e time $e $as been 0it$out 0or3 because of $is accident+ c+ #$e cost of t$e lost time because ot$er emplo"ees stop 0or3 out of curiosit"- out of s"mpat$"0it$ t$e injured emplo"ee- or because t$e" $ave to assist t$e injured 0or3er+ d+ #$e cost of time lost b" a foreman- a supervisor or ot$er e5ecutive 0$ile assisting t$e injured emplo"ee- investigating t$e cause of t$e accident- arranging for $is replacement- selecting and training a ne0 emplo"ee- preparing t$e accident report- and attending $earings conducted b" government of ot$er officials+ e+ #$e cost incurred on t$e mac$ine or tools t$at mig$t $ave been damaged and E or t$e cost of t$e spoilage of material 0$en t$e accident occurred+ f+ #$e loss of profit on t$e production 0$ic$ t$e injured emplo"ee 0ould $ave been responsible for- including t$e loss incurred because t$e mac$ine on 0$ic$ $e 0as 0or3ing 0as idle+

g+ #$e cost incurred on account of t$e 0ages paid to an emplo"ee during t$e period in 0$ic$ $e 0as idle follo0ing $is injur" and even after $is returns to 0or3- 0$en $is productions 0ould be 0ort$ muc$ less t$an it 0as before be sustained t$e injur"+ $+ #$e loss follo0ing t$e e5citement among or t$e 0ea3ened morale of t$e ot$er emplo"ees follo0ing t$e occurrence of t$e accident and t$e conse6uent lo0er production t$roug$out t$e plant- and

i+

Over$ead costs t$e e5pense incurred on lig$t- $eat- rent and suc$ ot$er items- 0$ic$ continue to be used 0$ile t$e injured emplo"ee is a non4producer+

%t is obvious- t$en- an accident causes a lot of suffering and loss to t$e emplo"ees- t$e emplo"er- t$e government- and even to societ"+ %t is particularl" $ard on t$e emplo"ee2s famil"- speciall" 0$en $e is t$e onl" bread40inner+ *ver" accident lo0ers t$e morale of $is fello040or3ers+ #$e" become pessimistic and increasingl" a0are of t$e $azardous nature of t$eir 0or3- as a result of 0$ic$ t$e" do not- or cannot- put t$eir best efforts to ac$ieve optimum production+ accidents- t$erefore- increase t$e over4all cost of production- and adversel" affect productivit" and morale+

ACCIDENT MEASUREMENT #0o main statistical ratios $ave been used to gat$er accident information t$e fre6uenc" rate and t$e severit" rate9 #$e fre6uenc" rate is t$e number of time lost accidents /or injuries 0$ic$ $ave disabled an emplo"ee1 per :-DD-DDD man $ours 0or3ed+ #$e severit" rate- on t$e ot$er $and- is ,t$e total number of da"s c$arged or lost because of accidents per :-DDD-DDD man $ours 0or3ed.+

#$e National Securit" 'ouncil of t$e 8nited States $as given t$e follo0ing formulate for t$e computation for t$ese rates+

!ccident Fre6uenc" Rate #otal number of man $ours 0or3ed

Number or disabling injuries 5 :-DDD-DDD

Severit" Rate Number of man da"s lost 5 :-DDD-DDD

#otal number of man $ours 0or3ed+

ACCIDENT REPORTS AND RECORDS Proper reports and records of accidents $ave to be maintained b" an organisatoin in t$e prescribed manner- and complete information about an accident and t$e circumstances attending t$e deat$ or disablement of a 0or3er or an" ot$er serious injur" to $im to be submitted to t$e government+

%f a case Page no+ :<A

!ccident records s$ould be maintained in detail and s$ould contain t$e follo0ing items9

a1 #$e total number of emplo"ees in t$e unit 0$o are e5posed to different t"pes of accidents+ b1 #$e severit" of t$e accident 0$et$er it resulted in a bro3en bone- a deep cut and t$e time t$at 0as lost as a result of it? c1 #$e 3ind of 0or3 or occupation in 0$ic$ t$e emplo"ee 0as engaged+ d1 #$e date- time and da"- and t$e s$ift during 0$ic$ t$e accident occurred+ e1 #$e total number of "ears during 0$ic$ t$e emplo"ee 0as engaged on t$at particular job 0$en t$e accident occurred+ f1 Personal data- including t$e age and $ealt$ of t$e injured emplo"ee? and

g1 #$e immediate cause of t$e accident 0$et$er it 0as t$e result of a malfunctioning of a mac$ine- or 0$et$er t$e emplo"ee failed to use t$e safet" devices provided for t$e purpose of preventing accidents- etc+

SAFET6 8HOSE RESPONSIBILIT6 Safet" is primaril" t$e responsibilit" of t$e management+ #$is responsibilit" s$ould rest on t$e s$oulders of all cadres of management- suc$ as Plant Manager- Production Manager+ '$ief *ngineerPersonnel Manager Maintenance *ngineer- individual foreman- safet" officer or Director+

*ver" organisatoin s$ould formulate and implement a safet" polic"+ #$e procedure to be adopted naturall" depends upon t$e size of a compan"- t$e number of plants it operates- t$e nature of t$e industr" in 0$ic$ it is engaged- t$e production tec$nolog" it uses- and t$e attitude of t$e top management+ !fter it $as spelt out its safet" polic"- a compan" s$ould establis$ a safet" programmet$e primar" goals of 0$ic$ s$ould be to reduce t$e number of $azardous factors 0$ic$ are li3el" to cause accidents and to develop safe 0or3ing $abits among its emplo"ees+ #$e specific tec$ni6ues and procedure 0$ic$ are used to accomplis$ t$ese objectives are9

Fine President (eneral Manager Superintendent (eneral Supervisor Supervisor &or3er

Staff #op *5ecutive Production *ngineer Safet" Director

Superintendent (eneral Supervisor Supervisor Supervisor

&or3er

T'p -1 Sa1 t' O%0a.i!ati-.

Safet" 'ommittee 'entral Safet" 'ommittee *5ecutive 'omptroller Maintenance Superintendent

Departmental Safet" 'ommittee ; Supervisors ; &or3ers SAFET6 ORGANISATION

Departmental Safet" 'ommittee ; Supervisors ; &or3ers

Departmental Safet" 'ommittee ; Supervisors ; &or3ers

! safet" director and a safet" committee be set up b" an organisation+ #$e safet" organisation 0or3s as s$o0n in t$e above figure #$e follo0ing facts s$ould be given due consideration in an" safet" organisation programme+ a+ Safet" programmes must $ave top management approval- sanction and support+ b+ Responsibilit" for safet" must test 0it$ t$e supervisor" personnel c+ Safet" must be given e6uall" important consideration 0it$ t$at of ot$er factors of production d+ Provision must be made for prompt action in t$e elimination of mec$anical and personal $azards+ e+ ! definite safet" programme must be developed to educate all emplo"ees in safet" and to secure t$eir active co4operation in t$e effort to eliminate accidents+ f+ Safet" must be included in all p$ases of planning- purc$asing supervision and operation+

ACCIDENT PRE$ENTION #$ere are several 0a"s b" 0$ic$ accidents can be prevented+ #$e National Safet" 'ouncil- 8+ S+ !+ t$at accident prevention depends on t$e t$ree *2s engineering- education and enforcement t$e job s$ould be engineered for safet" emplo"ees s$ould be educated in safe procedures- and safet" rules s$ould be properl" enforced+

%n actual practice- accident prevention boils do0n to t0o basis activities- reducing unsafe conditions and reducing unsafe acts+ Reducing unsafe conditions is t$e primar" dut" of safet" engineers- 0$o s$ould remove or reduce p$"sical $azards+ #able ;C+; gives a c$ec34list for reducing unsafe conditions+

Ta(2 3D.3 C, c?E2i!t -1 M c,a.ica2 -% P,'!ica2 Acci/ .t Ca;!i.0 C-./iti-.!

1. G . %a2 H-;! 9

pi.0

:+ !de6uate and 0ide aisles no materials protruding into aisles ;+ Parts and tools stored safel" after use not left in $azardous position t$at could cause t$em to fall+ <+ *ven and solid flooring no defective floors or ramps t$at could cause falling or tripping accidents =+ &aste cans and sand pails safet" located and properl" used+ Material piled in safe manner not too $ig$ or too close to sprin3ler $eads+ >+ Floors clean and dr" @+ Fire fig$ting e6uipment unobstructed A+ &or3ers benc$es placed orderl" B+ !isles 3ept clear and properl" mar3ed no air lines or electric cords across aisles+

3. Mat %ia2 Ha./2i.0 E@;ip& .t! a./ C-.* 'a.c !

On all conve"ances- electric or $and- c$ec3 to see t$at t$e follo0ing items are all in sound 0or3ing+ :+ )ra3es properl" adjusted ;+ &arning device in place and 0or3ing <+ &arning device in place and 0or3ing =+ &$eels securel" in place- properl" inflated >+ Fuel and oil enoug$ and rig$t 3ind @+ No loose parts A+ 'ables- boo3s c$ins not 0orn or ot$er0ise defective-

B+ Suspended c$ains or boo3s conspicuous C+ Safet" loaded properl" stored

3. La// %!+ Sca11-2/+ B .c, !+ Stai%<a'! tc. #$e follo0ing items of major interest to be c$ec3ed :+ Safet" feed on straig$t ladders ;+ (uard rails or $and rails <+ #reads- not slipper"- not4splintered- crac3ed or ric3et" =+ Properl" stored >+ *5tension ladders ropes in good condition

5. P-< % T--2! (Stati-.a%') :+ Point of operation fuarded+ ;+ (uards in proper adjustment <+ (ears- belts- s$afting counter 0eig$ts guarded =+ Foot pedals guarded >+ !de6uate lig$ting @+ Properl" guarded A+ #ools or material rests properl" adjusted B+ !de6uate 0or3 space around mac$ines C+ 'ontrol s0itc$ easil" accessible :D+ Safet" glasses 0orn ::+ (loves 0orn b" persons $andling roug$ or s$arp materials :;+ No gloves of lose clot$ing 0orn b" persons operating mac$ines

5. Ha./ t--2! a./ Mi!c 22a. -;! :+ %n good condition not crac3ed- 0orn or ot$er0ise defective ;+ Properl" stored <+ 'orrect for job =+ (oggles- respirators and personal protective e6ual 0orn 0$ere necessar"

A. 8 2/i.0 :+ !re s$ielded ;+ Fire $azards controlled

<+ Operator using suitable e6uipment =+ !de6uate ventilation >+ '"linder secured @+ Jalves closed 0$en not in use

A+ Spra" Painting :+ *5plosion proof electrical e6uipment ;+ Proper storage of paints and t$inners in approved metal cabinets <+ Fire e5tinguis$ers ade6uate and suitable- readil" accessible =+ Minimum storage in 0or3 area+

B+ Fire *5tinguis$ers :+ Properl" service and tagged ;+ Readil" accessible <+ !de6uate and suitable for operations involved+

STATUTOR6 PRO$ISION FOR SAFET6 IN INDIA #$e Factories !ct contains specific provisions for t$e safet" of 0or3ers+ #$ese are referred to in sections ;: to =D+ #$e" are9

FENCING OF MACHINER6 %t is obligator" on t$e part of t$e management to fence mac$iner" 0it$ guards of a substantial construction- 0$ic$ s$all be maintained and 3ept in position 0$en an" part of t$e mac$iner" is in motion+

8OR9 ON OR NE$ER MACHINER6 IN MOTION !n" e5amination- adjustment or lubrication of an" part of an operating mac$ine s$all be effected or carried out b" a speciall" trained male 0or3er 0earing tig$t4fitting clot$ing+

EMPLO6MENT OF ADOLESCENTS ON DANGEROUS MACHINES No adolescent s$all be allo0ed to 0or3 on an" mac$ine 0$ic$ poses a danger to $im unless+ a+ He $as been full" instructed to be0are of t$e particular danger t$at is li3el" to arise from t$e mac$ine and to observe t$e necessar" precautions- and b+ He $as received training on t$at mac$ine or is under t$e supervision or a person 0$o $as a t$roug$ 3no0ledge of- and e5perience in 0or3ing on- t$e mac$ine+

STRI9ING GEAR OR DE$ICE FOR CUTTING OFF PO8ER %n ever" factor"- a suitable stri3ing gear or ot$er efficient mec$anical appliances s$all be provided and maintained+ Driving belts- 0$en not in use- s$all not be allo0ed to rest or ride on a s$aft in motion+ Suitable device for cutting off po0er in an emergenc" s$all be provided and maintained in ever" 0or3room+

SELF ACTING MACHINES No transverse part of self4acting mac$ine and no material carried t$ereon s$all be allo0ed to run on its out0ard or in0ard transverse 0it$in a distance of => centimeters from an" fi5ed structure 0$ic$ is not a part of t$e mac$ine+

PROHIBITION OF EMPLO6MENT OF 8OMEN AND CHILDREN NEAR COTTON OPENERS No 0omen or c$ild s$all be emplo"ed in an" part of a factor" to press cotton 0$en a cotton opener is at 0or3+ )ut if t$e feed4end of a cotton4opener is in a room 0$ic$ is separated from t$e deliver" end b" partition e5tending to t$e roof or to suc$ $eig$t as t$e factor" inspector ma" specif" in 0riting0omen and c$ildren ma" be emplo"ed in t$at part of t$e room in 0$ic$ t$e feed end is situated+

HOISTS AND LIFTS %n ever" factor"- $oists and lifts s$all be of good mec$anical construction and of sound material- and t$e" s$all be sufficientl" strong and properl" maintained+ *ver" $oist 0a" and lift 0a" s$all be ade6uatel" protected b" a proper enclosure fitted 0it$ gates+ #$e ma5imum safe 0or3ing load s$all be clearl" indicated on ever" $oist or lift+ ! $eavier load s$all not be allo0ed to be carried on t$at $oist or lift+

LIFTING MACHINES+ TAC9LES+ CHAINS AND ROPES %n ever" factor"- lifting mac$ines- tac3les- c$ains and ropes s$all be of good construction and of sound material+ #$e" s$all be free from defects and strong enoug$ to carr" t$e necessar" loads+

RE$OL$ING MACHINER6 %t ever" room in 0$ic$ grinding jobs are carried on- a notice indicating t$e ma5imum 0or3ing speed of t$e mac$ine s$all be fi5ed near it+

PRESSURE PLANT %n an" operation 0$ic$ is carried on at a pressure 0$ic$ is $ig$er t$an t$e atmosp$eric pressureeffective measures s$ould be ta3en to ensure t$at t$e safe 0or3ing pressure is not e5ceeded+

FLOORS+ STAIRS+ AND OTHER MEANS OF ACCESS

!ll doors- steps- stairs- passages and gang 0a"s s$all be of sound construction and s$all be 3ept and maintained in a state of good repair- and t$e" s$all be free of obstructions+ No substance- 0$ic$ is li3el" to cause a person to slip- s$all be 3ept near t$em+

PITS AND OPENING IN FLOOR %n ever" factor"- ever" fi5ed vessel- tan3- pit or opening in t$e floor- 0$ic$ ma" be a sources of dangers$all be securel" covered or securel" fenced+

E4CESSI$E 8EIGHTS No person s$all be emplo"ed in an" factor" to lift- carr" or move an" load 0$ic$ is so $eav" as to cause $im a possible injur"+

PRECAUTIONS AGAINST DANGEROUS FUMES No person emplo"ed in a factor" s$all be allo0ed to enter an" c$amber- tan3- vat- pit- flue or suc$ ot$er confined place in 0$ic$ dangerous fumes are li3el" to be present to suc$ an e5tent as to constitute a $azard unless suc$ c$amber- tan3- vat- pit or flue is provided 0it$ a man$de of a large enoug$ size or 0it$ similar ot$er means of egress+

PRECAUTIONS IN CASE OF FIRE #$e follo0ing in case of fire a1 *5its doors s$all no be loc3ed or fastened and s$all be capable of being easil" opened- and t$e" s$all be so constructed as to open out0ards? b1 Proper means of escape s$all be provided in ever" industrial establis$ment? c1 *ver" door- 0indo0 or ot$er e5it- t$roug$ 0$ic$ persons can escape in t$e event of a fire- s$all be distinctl" mar3ed in red letters in a language t$at is understood b" 0or3ers+ d1 Proper arrangements s$all be made to raise an alarm in t$e event of a fire? it 0ould be preferable if a siren is sounded so t$at 0or3ers ma" recognize t$e signal as an indication t$at a fire $as bro3en out some0$ere in t$e factor" premises? e1 !ll t$e e5ists s$ould be easil" and freel" accessible to all t$e 0or3ers in ever" place in t$e factor" premises- so t$at can easil" ma3e t$eir escape 0$en a fire brea3s out- and f1 !ll t$e 0or3ers s$all be trained in t$e routine to be follo0ed in t$e event of a fire in t$e factor" premises+

RE$IE8 "UESTIONS :+ &$at are t$e various t"pe of direct monetar" pa"ments t$at t$e considered ,Fringe )enefits.M !ssess t$e positions of overtime pa"ments- paid $olida"s and leave 0it$ 0ages provided to emplo"ee in %ndia+ ;+ &$at are t$e major sources of $ealt$ $azards and ot$er t"pes of insecurit" of industrial emplo"eesM

<+ &$at is accident pronenessM Ho0 can it be minimized as a factor in injur" rates in an organisationM =+ Point out t$e causes and nature of accidents or emplo"ment injuries+ &$at benefits are available to emplo"ees in t$is regard+

LESSON 15 DISCIPLINE

Discipline means orderliness t$e opposite of confusion+ (ood discipline refers to orderl" be$aviour in accordance 0it$ t$e rules and procedures of t$e organisation+ Poor discipline refers to t$e failure of individuals to observe t$e rules establis$ed b" t$e organisation+ Disciplinar" action means ta3ing action against an individual 0$en t$e departs from t$e code of conduct observed b" t$e organisation+ #$e object of disciplinar" action is not to inflict punis$ment but to in$ibit some undesirable be$aviour of an emplo"ee+

Discipline ma" be of ; t"pes positive and negative+ positive discipline or 7self4discipline2 is t$e best discipline+ #$is refers to an organizational atmosp$ere in 0$ic$ subordinates 0illingl" abide b" rules 0$ic$ t$e" consider fair+ #$e tec$ni6ues follo0ed b" t$e management to ac$ieve t$is t"pe of discipline include positive motivational activities suc$ as praise participation and incentive pa"+ Negative or punitive discipline is one in 0$ic$ management $as to e5ert pressure or $old out t$reat b" imposing penalties on 0rongdoers+ &$en t$is pressure becomes increasingl" severe eac$ time a man is disciplined- it is called ,progressive. or ,corrective. discipline+

ARGUMENTS AGAINST PUNITI$E DISCIPLINE OR PUNISHMENT Man" people argue t$at punis$ment s$ould be avoided as a means of tr"ing to influence be$aviour+ #$eir objections are as follo0s9

a1 For punis$ment to be al all effective- t$ere must be continued motivating or surveillance- 0$ic$ is a ver" 0asteful use of $ig$ priced management time+ b1 Punis$ment never reall" e5tinguis$es or eliminating undesirable response tendencies- but onl" temporaril" suppresses t$em+ #$ese tendencies reappear 0it$ full force 0$en t$e t$reat of punis$ment is removed+ c1 Punis$ment $as undesirable side effects+ %t ma" cause resentment and $ostilit" to0ards t$e punis$ers 0it$ motive of tr"ing to ,get even. later t$roug$ sabotage output restriction- or doing t$ings t$at ma3e t$e punis$er ,loo3 bad. or caused $im inconvenience+ #$e fear associated 0it$ t$e punis$ing agent ma" lead to punis$ed person to avoid $is ver" presence- t$is- in turn- ma3es it more difficult for t$e manager to pla" t$e desired role of coac$- teac$er or counseller+ Or t$e action to punis$ment ma" be more e5treme- resulting in generalized in$ibition and rigidit" or stereo t"ped be$aviours in t$e punis$ed person- t$is can ma3e it more difficult for t$e person to learn ne0 be$aviour- including ver" desirable be$aviour or to adjust to c$ange+

ALTERNATI$ES TO PUNISHMENT !lternatives to punis$ment in eliminating undesired be$aviour include t$e follo0ing9 (a) E:ti.cti-.

Find out 0$at reinforces t$e undesired be$aviour- for e5ample- t$e unrul" subordinate ma" be getting praise and recognition from peers+ #$en get t$ose peers to co4operate 0it$ "ou b" ignoring t$e unrul" be$aviour+ &$en suc$ be$aviour is not reinforced- it 0ill eventuall" lose strengt$ and e5tinguis$+

(() E.*i%-.& .t .0i.

%i.0

Rearrange t$e features of t$e environment so t$at $e stimulus situation does nto evo3e t$e undesired response but some ot$er response+ S3inner /:C><1 tells t$e stor" of a manager 0$o $ad a traffic problem caused b" 0omen $urr"ing do0n t$e corridor as soon as t$e end of t$e 0or3 da" 0as signaled+ #$e manager solved $is problem b" placing 0all minors along t$e corridor+ #$e stimulus situations t$at $ad evo3ed stampeding do0n t$e $all 0a" 0as transformed into one 0$ic$ encouraged a more leisurel" and orderl" 0al3 and stop se6uence+

(c) R <a%/ Re0arding eit$er desirable or natural be$aviour 0$ic$ is p$"sicall" incompatible 0it$ t$e undesired be$aviour+ %f c$ildren are re0arded for e5ercising or for performing lig$t out door c$ores before dinnert$e" are prevented from e5cessive snac3ing and television 0atc$ing+

(/) A/);!t& .t !llo0 adjustment- development- or maturation to ta3e its course+ Ne0 or ine5perienced emplo"ees ma3e man" mista3es and do man" 0rong t$ings t$at t$e" 0in learn to avid- given a reasonable period of adjustment punis$ment ma" not $asten t$is process and if it causes undue an5iet"- it can actuall" retard t$is process+

ESSENTIALS OF GOOD DISCIPLINAR6 S6STEM &$ile punitive discipline or punis$ment ma" sometimes be ineffective in c$anging be$aviour or ma" produce un0anted b" products- t$ere is nevert$eless considerable evidence t$at punis$ment can be an effective tool under certain conditions+ #$ese are as under+

1. 9.-<2 /0 -1 %;2 ! #$e emplo"ee must be informed clearl" about 0$at constitutes good be$aviour and t$e re0ards t$at ma" emanate from it+ !ll instructions s$ould be clear and understandable+ %t is common sense t$at an emplo"ee 0ill obe" an instruction more readil" if $e understand it+ #$e supervisor $imself must 3no0 all t$e rules+ He cannot effectivel" communicate 0it$ $is 0or3ers if $is o0n 3no0ledge about rules is $all bac3ed+ %n fact- $e needs to 3no0 more t$an t$e barest minimum t$at $e 0ants $is 0or3ers to 3no0+ t$is reserve of 3no0ledge is essential in order to be able to ans0er several une5pected 6uestions from 0or3ers+ %n ot$er 0ords- a supervisor2s span of 3no0ledge and understanding of rules s$ould be greater t$an t$at of $is 0or3ers+ %f t$is is not so- t$e supervisor 0ill lose personal prestige bot$ before $is supervisors and sub ordinates+

3. P%-&pt acti-.

!ll violations and misconducts big and small s$ould be promptl" en6uired into+ For e5ample- a supervisor is most un0ise to 0ait until lunc$ brea3 before rebu3ing a 0or3s for arriving late+ )eat t$e iron 0$en it is $ot+ #$is is because 0$en t$e penalt" is imposed immediatel" follo0ing t$e violation of a rule t$e person punis$ed tends to identif" t$e punis$ment 0it$ t$e act $e committed+ !ccordingl"- t$e sub ordinate attempts to avoid t$e violation in future+ #$is is called t$e ,la0 of effect.+ #$e greater t$e dela" t$e more one forgets and t$e more one feels t$at punis$ment is not deserved+

3. Fai% acti-. Promptness of disciplinar" action at t$e cost of its fairness is not proper+ !n action in order to be fair must possess t$e follo0ing c$aracteristics+ a1 !ll violations big and small s$ould be dul" punis$ed+ ! violation s$ould not be over loo3ed or condoned merel" because it is small ot$er0ise t$is 0ill give an impression t$at announced rules are meaningless+ b1 !ll individuals big and small s$ould receive e6ual punis$ment for e6ual indiscipline+ %f a rule is applied to one individual but not to anot$er- t$e management is bound to be accused of favoritism+ c1 Discipline s$ould be uniforml" enforced at all times+ %f management soft4pedals on ta3ing a disciplinar" action 0$en t$ere is s$ortage of labour and toug$ens its polic" 0$en labour is plentiful it is acting arbitraril"+ Similarl"- if t$e management over loo3s a 0rong on one occasion and punis$es it on anot$er occasion it is acting inconsistentl"+ %nconsistent be$aviour of management leads to uncertaint" in t$e minds of subordinates+ #$e" simpl" do not 3no0 0$ere t$e" stand+ d1 #$e alleged violation s$ould be full" in6uired into ma3ing a mista3e b" $astil" administering a penalt" 0$ic$ on t$e basis of facts collected later on is found to be uncalled for 0ill mean a permanent destruction of t$e morale of t$e punis$ed 0or3er and general loss of face for t$e supervisor+ e1 #$e emplo"ees s$ould al0a"s be given an opportunit" to e5plain $is action+ #$e common la0 principle t$at an offender is innocent until $e is proved guilt" be"ond doubt s$ould be follo0ed+ #$e burden of proving t$e violation al0a"s lies on t$e management+

5. 8 22 / 1i. / p%-c /;% ! #$e procedure to be follo0ed to reac$ to a penalt" decision s$ould be carefull" laid do0n+ %t s$ould include t$e follo0ing steps9 a1 #$e supervisor must assure $imself t$at some violation of t$e rules $as ta3en place+ b1 He s$ould state precisel" and objectivel" t$e nature of t$e alleged violation+ c1 He s$ould t$en proceed to gat$er full facts about t$e cases and maintain proper records+ Facts 0ill $ave to be gat$ered concerning t$e nature of t$e event- t$e participants and t$e surrounding circumstances+ *5tenuating circumstances suc$ as ill4$ealt$- famil" troubles etc+- s$ould be found out+ ! critical anal"sis s$ould be made of t$e person2s bac3ground suc$ as $is past service recordlengt$ of service- local practice- etc+ Fact gat$ering is often a process of fact sifting+ Opinions s$ould not be mista3en for facts+ #$e met$ods used for gat$ering t$e fact must not smac3 of sp"ing and statements s$ould not be prejudged+ d1 !fter all t$e facts $ave been gat$ered t$oug$ s$ould be given to t$e various gat$ered t$oug$t s$ould be given to t$e various "pes of disciplinar" action 0$ic$ can be ta3en in t$e case in

6uestion+ %t is advisable to prepare < separate lists of actions+ #$e : st list s$ould include all t"pes of disciplinar" action to ma3e certain t$at no possibilit" is over loo3ed+ #$e ; nd list s$ould classif" penalties according to ran3 in order to ac6uaint t$e e5ecutive 0it$ t$ose actions 0$ic$ lie 0it$ in $is command and t$ose for 0$ic$ $e s$ould refer t$e case to $is superiors+ #$e < rd list s$ould include onl" t$ose penalties 0$ic$ t$e offence in 6uestion specificall" calls for+ e1 #$e appropriateness of a disciplinar" action s$ould be decided in terms of its effectiveness in correcting t$e emplo"ee+ #$is is ver" important because t$e purpose of a disciplinar" action is to mend an emplo"ee and not to punis$ $im- to $elp $im and not to $arm $im+ f1 #$e accused emplo"ee s$ould $ave t$e rig$t to appeal to $ig$er aut$orities+

5. C-.!t%;cti* ,a./2i.0 -1 /i!cip2i.a%' acti-. Disciplinar" action s$ould be $andled in a constructive manner+ %t s$ould be carried out b" t$e immediate line supervisor+ #$is is necessar" to preserve t$e supervisor2s aut$orit" and status+ #$e emplo"ee s$ould be told not onl" t$e reasons for t$e action ta3en against $im but also $o0 $e can avoid suc$ penalties in future+ Disciplinar" action s$ould be ta3en in private+ )" e5posing an emplo"ee to public ridicule t$e supervisor attac3s $is dignit" and social standing+ #$is ma" produce an opposite effect on t$e emplo"ee+ He ma" react violentl" or ma" become obstinate to preserve $is ego+

%t is most un0ise for a supervisor to ta3e a general disciplinar" action against a group of subordinates+ Disciplinar" action is a matter for t$e individual+ %t is t$e individual 0$o s$ould be $eld responsible for an" 0rong+ ! management 0$ic$ ta3es disciplinar" actions against a group is li3el" to set off a 0ave of unrest associated 0it$ failing morale and even t$e possibilit" of a 0ild cat stri3e+

!fter t$e disciplinar" action $as been ta3en t$e supervisor must assume a normal attitude to0ards t$e emplo"ee+ #$e s$ould revert to $is role of a $elping $and as if noting $as $appened+ #$is is possible onl" 0$en t$e supervisor uses an impersonal approac$ in administering a penalt"+ He s$ould not engage in personal ridicule- insult or even criticism+ He s$ould avoid getting into an argument+ %n s$ort$e must pla" t$e role of a judge enforcing t$e la0 0it$ impartialit"+

9INDS OF PUNISHMENTS !s a normal rule- punis$ment s$ould be commensurate 0it$ t$e gravit" of t$e offence+ !n emplo"ee found guilt" ofanact of minor misconduct li3e unpunctualit" or irregular attendance cannot be a0arded t$e same punis$ment as ma" justifiabl" be a0arded to an emplo"ee- found guilt" of an act of major misconduct li3e t$e t$eft of emplo"er2s propert"+ For various t"pes of misconduct li3e t$e t$eft of emplo"er2s propert"- for various t"pes of misconduct t$ere are various punis$ments 0$ic$ are set out belo0 in $e ascending order of t$eir severit"+

:+ Oral reprimand ;+ &ritten reprimand Minor Punis$ments <+ Foss of privileges =+ Fines

>+ Punitive suspensor @+ &it$ $olding of increments Major Punis$ments A+ Demotion B+ Disc$arge C+ Dismissal 1. ORAL REPRIMAND #$is is t$e mildest from of disciplinar" action in 0$ic$ t$e superior ma3es it clear to $is subordinate t$at $e does not approve of t$e subordinate2s be$aviour+ #$is punis$ment is generall" given for some minor offences suc$ as failure to obe" safet" rules- smo3ing in a pro$ibited area- on t$e job or giving sub4 standard performance+

%ssue of reprimand does not involve loss of status or 0ages to t$e emplo"ee and- t$erefore- t$oug$ it amounts to disciplinar" action- it is not deemed to be substantive punis$ments+ Ho0ever- as possible invariabl" value t$e social approval of t$eir actions b" t$eir superiors and fello0 beings a reprimand is generall" effective in correcting subordinates+ )ut it s$ould be used sparingl"- ot$er0ise it 0ill not produce an" effect on t$e subordinate+ ! subordinate 0$o is continuall" criticized tries to cover up $is mista3es- becomes tense and loses $is sense of securit"+ He does not 0ant to accept responsibilit" and on account of lo0 morale commits furt$er mista3es+

3. 8RITTEN REPRIMAND !n oral reprimand ma" not be sufficient in case of $abitant misconduct or inefficienc"+ %n suc$ a situation it is desirable t$at it is issued in 0riting and broug$t on record so t$at it ma" support- if necessar"- an" substantive punis$ment t$at ma" $ave to be given to t$e emplo"ee in future+ ! 0ritten reprimand ma" state t$at certain privileges 0ould be 0it$ $eld or 0it$dra0n if t$e subordinates continues 0it$ $is present conduct+ %n some enterprises t$e records to an emplo"ee ma" be mar3ed and t$e emplo"ee s$o0n a cop" of t$e notation to serve as a 0arning+

! 0arning serves to alter t$e e5pectations of an individual b" ma3ing $im a0are of t$e e5act nature of punis$ment t$at a0aits $im follo0ing furt$er acts of disobedience+ %t is not fair for a superior to 0arn a subordinates and later punis$ $im more severel" t$an 0as e5pected at t$e time of t$e 0arning+

3. LOSS OF PRI$ILEGES For suc$ offences as tardiness or learning 0or3 0it$out permission- t$e emplo"ee ma" be put to loss of various privileges suc$ as good job assignments rig$t to select mac$ine or ot$er e6uipment and freedom of movement about t$e 0or3place or compan"+

5. FINES Fine means a deduction from t$e remuneration of t$e emplo"ee be 0a" of punis$ment+ Po0er to ma3e penal deductions from t$e remuneration of t$e emplo"ee is not an implied term of ordinar" contract bet0een master and servant and suc$ can be e5ercised onl" if especiall" reserved to t$e emplo"er under t$e contract of emplo"ment+

5. PUNITI$E SUSPENSION Punitive suspensions inflicted on t$e 0or3man as a punis$ment for some misconduct 0$ere as suspension pending an en6uir" is onl" an e5pedient action 0$ic$ a manager ma" find necessar" to ta3e follo0ing commission of a grave and serious misconduct+ 8nder punitive suspension an emplo"ee is pro$ibited from performing t$e duties assigned to $im and $is 0ages are 0it$$eld for so long as t$e pro$ibition subsists+ 8nder suspension pending an en6uir"- unless t$e conditions of service ma3e a contrar" provision- a 0or3man 0ould be entitled to 0ages for t$e period of suspension+

A. 8ITH HOLDING OF INCREMENTS &it$ $olding of annual increments of an emplo"ee in a graded scale is a major punis$ment and generall" spea3ing t$e acts of misconduct for 0$ic$ t$is punis$ment ma" be a0arded are t$e same as t$ose for 0$ic$ t$e e5treme punis$ment of dismissal ma" be a0arded+ #$e cumulative effect of losing an increment is considerable+ %t is e6ual to t$e amount of increment times :; mont$s- time t$e number of t$e "ears of service still remaining+

B. DEMOTION %t means reduction of an emplo"ee to a lo0er grade from t$e one $it$erto enjo"ed b" $im+ !ccording to some 0riters since demotion implies condemnation of t$e emplo"ees as being unfit for t$e position occupied b" $im it s$ould not be used as a penalt" if t$e emplo"ee is properl" 6ualified for t$e present assignment+ Demotion s$ould be sued onl" in a case 0$ere an emplo"ee does not meet present job re6uirement or in t$e event of a cutbac3 in t$e 0or3 force+

C. DISCHARGE %n common la0- if bot$ parties to an agreement $ave performed 0$at t$e" $ave agreed to do t$e contract is disc$arged+ #$us- in a contract of service if bot$ parties $ave agreed to terminate t$e contract b" giving stipulated amount of notice or b" pa"ing mone" in lieu t$ere of t$e contract of service can be terminated in t$e agreed manner for reasons 0$ic$ do not impl" an" act of misconduct? for e5ample- an emplo"ee ma" be disc$arged o0ing to eit$er redundance or superannuation or infirmit"etc+ in accordance 0it$ $is contract of service- 0it$out an" fault on $is part+

D. DISMISSAL !lso referred to as industrial capital punis$ment- dismissal is t$e ultimate penalt" 0$ic$ is rarel" resorted to no0ada"s+ #$oug$ disc$arge and dismissal bot$ $ave t$e same result- namel" t$e termination of service of t$e emplo"ee- t$ere are some vital differences bet0een t$e ;+

a+ &$ile dismissal is al0a"s a punis$ment t$at disc$arge- ma" or ma" not be a punis$ment b+ ! dismissal is a more severs punis$ment t$an disc$arge+ #$ere is a stigma attac$ed to t$e e5pression ,dismissal. 0$ic$ ma3es dismissal a dis6ualification for future emplo"ment+ #$is is not so in t$e case of disc$arge+ c+ ! dismissal is usuall" summar"- t$at is immediate action is ta3en to terminate t$e emplo"ment contract of t$e emplo"ee 0it$out notice+ )ut is case of a disc$arge an agreed amount of notice ma" $ave to be given+ #$e justification for not giving a 0arning lies in t$e general acceptance t$at t$e acts and omissions for 0$ic$ t$e punis$ment of dismissal ma" be inflicted are sociall" repugnant and a management is full" entitled to protect itself against suc$ acts+ d+ %n cases of dismissal t$e emplo"ee is not usuall" entitled to provident fund or gratuit" benefits but t$is is not so in t$e case of a disc$arge+

#$e supreme punis$ment of dismissal is inflicted rarel"+ Managers generall" tr" to avoid it+ #$e" ver" often follo0 several ot$er means of eliminating a person 0it$out an outrig$t dismissal+ #$ese are as follo0s9 a+ #$e flo0 of 0or3 ma" be altered so t$at it goes around t$e particular emplo"ee? t$us $e ma" ta3e $int and submit $is resignation+ b+ #$e job ma" be abolis$ed and duties scattered about among ot$er emplo"ees- t$en after t$e emplo"ee $as left t$e organisation t$e dutics can be reassembled and a ne0 emplo"ee $ired to fill t$e job+ c+ Resignation ma" be demanded b" $olding out t$reat of disc$arge d+ %n $ig$er position- t$e emplo"ee ma" be 73ic3ed upstairs2 and promoted out of t$e 0a"- $e ma" be made a special consultant and never consulted+ #$e cost of $is salar" ma" be muc$ less t$an t$e loss from retention in $is present job+ e+ #$e emplo"ee ma" be transferred to some ot$er department

INDIAN LA8 ON PUNISHMENT %ndian la0 on punis$ment is contained in 4 4 4 #$e %ndustrial *mplo"ment /Standing Orders1 !ct- :C=@ Section B of t$e Pa"ment of &ages !ct :C<@ and Section %F! and Section << of t$e %ndustrial Disputes !ct :C=A+

! brief description of t$is la0 is under9

INDUSTRIAL EMPLO6MENT (STANDING ORDERS) ACT+ 1D5A #$e object of t$is act is to re6uire emplo"ers in %ndustrial establis$ments emplo"ing :DD or more persons to define precisel" t$e condition of emplo"ment including t$e rules of discipline and procedure for punis$ment for indiscipline and to ma3e t$em 3no0n to t$e 0or3men emplo"ed b" t$em+ #$e matters to be defined are prescribed in t$e sc$edule to t$e act+ #$ese are as follo0s9

:+ 'lassification of 0or3man e+g+ 0$et$er permanent- temporar"- apprentices- probationers- or badlis+ ;+ Manners of intimating to 0or3men periods and $ours of 0or3- $olida"s- pa" da"s and 0age rates+ <+ S$ift 0or3ing =+ !ttendance and late coming+ >+ 'onditions of procedure in appl"ing for- and t$e aut$orit" 0$ic$ ma" grant leave and $olida"s+ @+ Re6uirements to enter promises b" certain gates and liabilit" to searc$ A+ 'losing and reopening of sections of t$e industrial establis$ment and temporar" stoppages of 0or3 and t$e rig$ts and liabilities of t$e emplo"er and 0or3men arising t$ere form+ B+ #ermination of emplo"ment- and t$e notice t$ereof to be given b" emplo"er to 0or3man+ C+ Suspension or dismissal for misconduct and acts or omissions 0$ic$ constitute misconduct+ :D+ Means of redress for 0or3men against unfair treatment or 0rongful e5actions b" t$e emplo"er or $is agents or servants+ ::+ !n" ot$er matter 0$ic$ ma" be prescribed b" t$e appropriate government+

Rules relating to above inatters are 3no0n as Standing orders+ %t s$ould be noted t$t it is not permissible for t$e emplo"ers to frame+ Standing orders in respect of t$e matters not provide for in t$e sc$eme of t$e !ct+ %n ot$er 0ords- an emplo"er can ma3e standing orders onl" 0it$ regard to t$e matters set out in t$e above sc$edule+ #$us- t$e central government $as b" notification dated :A t$ anuar" :CB< added t$e follo0ing B matters for framing standing orders in all industrial establis$ments e5cept coal mines9 :+ Service record ;+ 'onfirmation <+ !ge of retirement =+ #ransfer >+ Medical aid in case of accident @+ Medical e5amination A+ Secrec" B+ *5clusive services

MODEL STANDING ORDERS #$e central and state governments $ave framed t$eir o0n rules on t$e above listed matters+ #$ese are 3no0n as Model orders and are contained in sc$edules to t$e %ndustrial *mplo"ment /Standing orders1 Rules of t$ese governments+ Once t$e act becomes applicable to an industrial establis$ment- t$e Model Standing orders framed b" t$e appropriate government become immediatel" applicable till t$e standing orders framed b" t$e establis$ments itself are certified and broug$t into force according to t$e act+

CERTIFICATION OF STANDING ORDERS

a+ #$e procedures for certification of standing orders re6uires t$at 0it$in @ mont$s from t$e date on 0$ic$ t$e %ndustrial *mplo"ment /Standing orders1 act becomes applicable to an industrial establis$ment+ #$e emplo"er s$ould submit > copies of t$e standing orders proposed b" $im to t$e certif"ing officer+ Suc$ draft s$ould provide for ever" matter set our above and s$ould be in conformit" 0it$ model standing orders as far as it is practicable+ #$e draft standing orders s$uld be accompanied b" a statement giving prescribed particulars of t$e 0or3men emplo"ed in t$e industrial establis$ment and t$e name of t$e trade union 0$ic$ t$e" belong to+ %n case t$ere is no union in t$e establis$ment t$e certif"ing officer ma" $old t$e election and $ave < 0or3ers elected as representatives of t$e 0or3men in t$e establis$ment+ b+ On receipt of t$e draft t$e certif"ing officer s$all for0ard a cop" t$ere of to t$e trade union or 0$ere t$ere is not suc$ trade union to t$e elected representative of t$e 0or3men 0it$in :> da"s from t$e receipt of suc$ notice+ c+ !fter giving t$e emplo"er and t$e trade union or representatives of t$e 0or3men an opportunit" of being $eard- t$e certif"ing officer s$all decide 0$et$er or not an" modification or addition to t$e draft submitted b" t$e emplo"er is necessar" to render t$e draft certifiable under t$e act+ For t$is purpose $e s$all ensure t$at 9 i1 j1 #$e draft is in conformit" 0it$ t$e model standing orders issued b" t$e government #$e draft provides for ever" matters set out in t$e sc$edule and

31 #$e draft is reasonable and fair

He s$all t$en certif" t$e Draft Standing Orders 0it$ or 0it$out modification and s$all send 0it$in A da"s aut$enticated copies t$ere of to t$e emplo"er and to t$e trade union or t$e representatives of t$e 0or3men+

!n" person aggrieved b" t$e order of t$e certif"ing officer ma" 0it$in <D da"s from t$e date on 0$ic$ copies 0ere sent b" t$e certif"ing officer to t$e respective parties appeal to t$e !ppellate !ut$orit" notified under t$e !ct b" t$e appropriate government- 0$ose decision s$all be final+

%f no appeal is preferred- t$e standing orders s$all come into operation on t$e e5pir" of t$e <D da"s from t$e date on 0$ic$ aut$enticated copies are sent b" t$e certif"ing officer to t$e respective parties+ &$ere an appeal is preferred- t$e standing orders s$all come into operation on e5pir" of A da"s from t$e date on 0$ic$ copies of t$e orders of t$e !ppellate !ut$orit" are sent+

MISCONDUCT No punis$ment can be imposed on an emplo"ee unless $e is proved guilt" of some misconduct mentioned in t$e standing orders+ Misconducts 0$ic$ are most common in t$e standing orders are as under9

:+ Disobedience or 0illful in subordination ;+ #$eft- fraud or dis$onest" in connection 0it$ emplo"er2s business or propert"+ <+ &illful damage to or loss of emplo"er2s goods or propert"+

=+ #a3ing or giving na" bribes or illegal gratification >+ Habitual absence 0it$ out leave or unaut$orized absence for more t$an a certain number of da"s+ @+ Habitual late attendance A+ Habitual breac$ of an" la0 applicable to t$e establis$ment B+ Riotous or disorderl" ba$aviour during 0or3ing $ours at t$e establis$ments or an" act subversive of discipline+ C+ Habitual negligence or neglect of 0or3 or fre6uent repetition of an" act or omission for 0$ic$ time ma" be imposed+ :D+ Stri3ing 0or3 or inciting ot$ers to stri3e in contravention of an" la0+ ::+ !dopting go slo0 tactics :;+ 'ollecting or canvassing for t$e collection of funds for an" trade union or canvassing for its members$ip during 0or3ing $ours 0it$in t$e compan" premises+ :<+ Failure to observe safet" instructions- unaut$orized removal- interference or damage to mac$iner" guards- fencing and ot$er safet" devices installed in t$e factor"+ :=+ Distributing or e5$ibiting inside t$e factor" an" ne0spapers- $and4bills- pamp$lets- or posters 0it$out t$e previous sanction of t$e manager+ :>+ Refusal to 0or3 on anot$er mac$ine of t$e same t"pe+ :@+ Holding general meeting inside t$e factor" premises 0it$out t$e previous sanction of t$e managers+ :A+ Disclosing to an" unaut$orized person an" information in regard to t$e 0or3ing to 7process2 of t$e factor" 0$ic$ comes into t$e possession+ :B+ Sleeping or dosing 0$ile on dut" :C+ Refusal to accept a c$arge s$eet- order or ot$er communication ;D+ %nterfering or tampering 0it$ t$e records of t$e compan"+ ;:+ 'onvection b" an" court of la0 for na" criminal offences involving moral turpitude+ ;;+ Smo3ing 0it$in t$e factor" e5cept in places 0$ere smo3ing is permitted+

FORMS OF PUNISHMENT (enerall"- t$e forms of punis$ment as laid do0n in t$e standing orders are follo0s9 :+ &arning %t is bad remar3 in t$e 0or3er2s service record and is li3el" to be used against $im in future+

;+ Fine #$e ma5imum fine allo0ed to be deducted from a 0or3er2s 0age in laid do0n in t$e Pa"ment &ages+ %t is < paise in t$e rupee of t$e 0or3er2s total mont$l" 0age+ Section B of t$e act places several statutor" restrictions on t$e service of t$is po0er+

<+ Stoppage of promotion Stoppage of promotion or demotion or 0it$ $olding of increment for a certain period+

=+ Suspension Standing orders prescribe t$e ma5imum number of da"s /generall" it is = times1 for 0$ic$ suc$ punis$ment ma" be inflicted+

>+ Disc$arge %n standing orders t$ere is usuall" a provision of termination of a 0or3er2s service b" giving :> da"s notice or pa"ing 0ages in lieu t$ere of+

@+ Dismissal Standing orders generall" provide t$at no order of dismissal s$all be made unless t$e 0or3man concerned is informed in 0riting of t$e alleged misconduct and is given an opportunit" to e5plain t$e circumstances alleged against $im+

PROCEDURES FOR TA9ING DISCIPLINAR6 ACTION &$et$er or not t$ere are standing orders t$e procedure for ta3ing disciplinar" action against 0or3ers s$ould be based on t$e follo0ing principles of natural justice+ a+ #$e person accused s$ould 3no0 t$e nature of t$e accusation madeb+ #$e person accused s$ould be given an opportunit" to state $is case and c+ #$e management s$ould act in good fait$+

%f t$e standing orders of an organisation provide for t$e procedures t$e same s$ould be strictl" follo0ed for t$e punis$ment ma" be $eld invalid if t$ere is an" deviation from t$e laid do0n procedure+

#$e management starts t$e procedure for ta3ing disciplinar" action against t$e 0or3s b" giving $im a c$arge s$eet+ '$arge s$eet is not a punis$ment in itself+ %t is merel" notice of a c$arge t$at t$e 0or3er is responsible for some misconduct and t$at t$e management 0ants to 3no0 0$at $e $as to sa" about it+ %t gives t$e 0or3ers an opportunit" to e5plain $is conduct+ ! c$arge s$eet is t$erefore also called a s$am cause notice+ #$e follo0ing guidelines ma" be follo0ed in framing t$e c$arges+

:+ *ac$ c$arge must be ver" clear and precise+ %t s$ould not be vague+ ;+ #$ere s$ould be a separate c$arge for eac$ allegation <+ #$ere s$ould be not multiplication of c$arges for t$e same allegation =+ '$arges must not relate to an" matter 0$ic$ $as alread" been divided upon+

!n en6uiring officer is dis6ualified on an" of t$e follo0ing grounds9 a+ %f $e is involved in t$e incident 0$ic$ led to t$e c$arge s$eet b+ %f $e $as personal 3no0ledge of t$e incident or $imself gives or collects evidence for t$e ver" en6uir" conducted b" $im or $elps ot$ers in doing so+ c+ %f $e $imself $as issued t$e c$arge s$eet d+ %f $e is directl" subordinate to t$e person accused+

Man" standing orders $ave a provision permitting a c$arge s$eeted 0or3ers to be defended b" a co4 0or3er or b" an official of t$e union+ Nonparticipation in t$e en6uires of a c$arge s$eeted 0or3ers cannot sta" t$e en6uir" proceedings+ #$e management ma" proceed 0it$ t$e en6uir" even in $is absence of t$e 0or3er t$e management leads its evidence and t$e en6uir" officer records $is findings on t$e basis of t$e evidence produced before $im+ #$e person 0$o leads evidence from t$e management side is called t$e presentation officer+

On t$e basis of t$e conclusions arrived at b" t$e en6uir" officer- t$e management issues punis$ment orders+ #$e report of t$e en6uir" officer it s$ould be noted- is generall" silent on t$e past service record of t$e accused because suc$ record is not broug$t to t$e notice of t$e en6uir" officer during t$e en6uir" proceedings e5cept in cases of $abitual misconduct+ #$e 6uestion t$erefore arises ,s$ould past record be considered b" t$e management 0$ile issuing punis$ment orders.M #$ere is no unanimit" among Hig$ court decisions on t$is point+ t$e desirable course $o0ever- appears to be consider suc$ records before inflicting punis$ment+ %t 0ould be still better if t$e past record is broug$t to t$e notice of t$e en6uir" office during en6uir" proceeding so as to give an opportunit" to t$e accused 0or3ers to ma3e $is submission regarding $is past record also+

%t s$ould be noted t$at 0$en a dispute is pending in conciliation- arbitration or adjudication proceedings t$e emplo"er $is not rig$t to punis$ a 0or3man for $is misconduct 0$ic$ is connected 0it$ t$e pending dispute+ For e5ample- a 0or3man 0$o $as ta3en part in a g$erao in furt$erance of some demands covered b" t$e dispute being guilt" of misconduct connected 0it$ t$e pending dispute cannot be punis$ed+ Punis$ment in suc$ cases can be a0arded onl" 0it$ t$e 0ritten permission of t$e aut$orit" before 0$ic$ t$e proceeding is pending 0$en t$e misconduct of t$e emplo"ee is not connected 0it$ t$e pending dispute or disc$arge+ Dismissal or disc$arge of t$e emplo"ee can be made onl" after t$e emplo"ee $as been paid 0ages for t$e mont$ and an application $as been made b" t$e emplo"er to t$e aut$orit" before 0$ic$ t$e proceeding is pending for approval of t$e action ta3en b" $im /Sec+ << of t$e %ndustrial Disputes !ct1

Sec+ ::4! of t$e industrial Disputes !ct- :C=A empo0ers a Fabour court #ribunal or National #ribunal as t$e case ma" be to act aside t$e order of disc$arge or dismissal of an emplo"ee even if passed follo0ing a proper and valid en6uir" b" t$e emplo"er+

RE$IE8 "UESTIONS :+ &$at are t$e essentials of a good disciplinar" s"stemM &$at is ,Hot Store. ruleM

;+ Describe t$e various 3inds of punis$ment 0$ic$ are inflicted on a 0or3ers for misconductM <+ Describe t$e salient features of Domestic *n6uir"+ 'an aggrieved emplo"ee see3 t$e assistance of an outside advocate to plead t$e case 0it$ t$e emplo"er on be$alf of $e emplo"eeM =+ &$at is meant b" model standing ordersM !re t$ese orders applicable to all establis$mentM &$at is t$e scope of t$eir applicationM >+ Describe t$e %ndian Fa0 on discipline in industr"+

LESSON 1A GRIE$ANCE

MEANING ! grievance is an alleged violation of t$e rig$ts of 0or3ers on t$e job+ %t ma" occur in one of several forms9

4 4 4 4 4

!s a violation of t$e collective bargaining agreement !s a violation of 'entral or State la0s !s a violation of past practice !s a violation of compan" rules !s a violation of management2s responsibilit"

!ccording to Mic$ael + ucius- t$e term ,grievance. means ,an" discontent or dissatisfaction- 0$et$er e5pressed or not and 0$et$er valid or not- arising out of an"t$ing connected 0it$ t$e compan" t$at an emplo"ee t$in3s- believes or even feels- is unfair- unjust or ine6uitable. t$is definitions ver" broad and covers dissatisfactions 0$ic$ $ave t$e follo0ing c$aracteristics9

:+ #$e discontent must arise out of somet$ing connected 0it$ t$e compan" &or3ers ma" be dissatisfied because of several reasons- e+g+ illness in t$e famil"- 6uarrel 0it$ a neig$bor- disli3ing for t$e political part" in po0er- and so on+ Suc$ outside sources are be"ond t$e control of t$e compan" and t$erefore do not constitute a grievance+ ;+ #$e discontent ma" be e5pressed or implied

*5pressed grievances are comparativel" eas" to recognize and are manifested in several 0a"s- e+g+ gossiping- jealousl"- active criticism argumentation- increased labour turnover- carelessness in t$e use of tools and materials- untid" $ouse 3eeping- poor 0or3mans$ip- etc+ 8ne5pressed grievances are indicated b" indifference to 0or3- da" dreaming- absenteeism- tardiness- etc+ it is not 0ise to recognize onl" e5pressed grievances and over loo3 t$e une5pressed ones+ %n fact Tune5pressed or implied grievances are more dangerous t$an t$e e5pressed ones because it is not 3no0n 0$en t$e" ma" e5plode+ Hence- t$e e5ecutive s$ould develop a sevent$ sense for anticipating grievances+ He s$ould be sensitive to even t$e 0ea3 and 7implied2 signals from t$e emplo"ee+ !n emplo"ee ma" causall" remar3 t$at it is too be in t$e room or t$at $e $as been assigned a job t$at $e does not li3e+ !ll suc$ casuals remar3s and grumblings are grievances b" implication+ Onl" for a pain sta3ing and of servant supervisor it is possible to discover 0$at is bot$ering emplo"ees before t$e" t$emselves are a0are of grievances+ #$e personnel department can be $elpful b" training supervisors to become proficient in observing emplo"ees+ t$e tec$ni6ues of attitude surve"s and statistical interpretations of trends of turnover complaints transfers- suggestions etc+ are also $elpful in t$is connection+

<+ #$e discontent ma" be valid legitimate and rational or untrue and irrational or completel" ludicrous+ #$e point is t$at 0$en a grievance $eld b" an emplo"ee comes to t$e notice of t$e management it cannot usuall" dismiss it as irrational or untrue+ Suc$ grievances also $ave to be attended to b" t$e management in t$e same 0a" as rational grievances+ &e s$ould 3no0 t$at a large part of out be$aviours is irrational t$is ma" be largel" due to our distorted perception *motional grievances 0$ic$ are based upon sentiments /li3e love- $atred resentment- anger- env" fear- etc+ 1 misconceptions and lac3 of t$in3ing are e5amples of our irrational be$aviour+ #$ese grievances are t$e most difficult to $andle+

CAUSES OF GRIE$ANCES #$e causes of grievances ma" broadl" be classified in t$e follo0ing categories9

/!1 (rievances resulting form 0or3ing conditions a+ %mproper matc$ing of t$e 0or3er 0it$ t$e job b+ '$anges in sc$edules or procedures c+ Non4availabilit" of proper tools- mac$ines and e6uipment for doing t$e same+ d+ #ig$t production standards e+ )ad p$"sical conditions of 0or3 place f+ Failure to maintain proper discipline+

g+ Poor relations$ip 0it$ t$e supervisor+

/)1 (rievances resulting from management polic" a+ &age pa"ment and job rates b+ Feave c+ Overtime d+ Seniorit" e+ #ransfer f+ Promotion- demotion and disc$arges

g+ Fac3 of career planting and emplo"ee development plan $+ Fac3 of role clarit"- delegation etc+ i+ j+ Fac3 of regard for collective agreement Hostilit" to0ard a labour union

/'1 (rievances resulting from personal mal adjustment a+ Over ambition b+ *5cessive self4esteem

c+ %mpractical attitude to life- etc+

GRIE$ANCES PROCEDURE *ver" organisation $as need for a continuing process of conciliation to facilitate settlement of controversies and to assure an emplo"ee 0it$ a grievance t$at $is case 0ill be given a fair $earing+ One of t$e important jobs of front4line supervisors is to $andle problems 0it$ emplo"ees rig$t on t$e spot to mutual satisfaction of 0or3ers and management+ %nevitabl" grievances 0ill arise t$e cannot be easil" settled b" t$e parties immediatel" concimed at t$e outset+ #$e supervisor $im self ma" be t$e cause of t$e grievance in t$e 0or3ers mind+ #o t$is reason- an organisation needs a standing procedure or mac$iner" for orderl" rediressal of grievances+ #$e mac$iner" ma3es provision for appeal up t$e ladder to top level management+ %n situations 0$ere union contracts so provide- grievances not ot$er0ise settled ma" be sent to arbitration+ Morale is boosted b" speed" disposition of grievances $andled in conformance 0it$ set procedures+

! grievance procedure is a graduated series of steps arranged in a $ierat$" of increasing comple5it" and involvement+ #$e number of step in a grievance procedure ver" 0it$ t$e size of organisation+ ! small organisation ma" $ave ; steps t$e supervisor and t$e manager but a big organisation ma" $ave as man" as :D steps+ #$e first and t$e last steps are almost t$e same for all organizations+ #$oug$ a labour union is not essential to t$e establis$ments and operation of a grievance procedureone is assumed in t$e sc$ematic- diagram of a = step grievance procedure 0$ic$ is s$o0n in Fig+ =+

!s is s$o0n in t$e diagrams t$e frontline supervisor is al0a"s accorded t$e : st opportunit" to $andle grievances+ He is t$e :st rung of t$e ladder+ %f t$e concern is unionized- a representatives of t$e union ma" also join $im+ #$is step is ver" necessar" to preserve t$e aut$orit" of t$e supervisor over $is 0or3ers+ )ut all grievances cannot be $andled b" t$e supervisor because man" of t$em involve issues or policies 0$ic$ are be"ond t$e limits of t$e aut$orit"+ #$ere ma" be some grievances 0$ic$ $e ma" fail to redress and find solution for+ Hence provision is made for a second step in $andling grievances+ #$is ;nd step ma" be t$e personnel officer $imself or some middle4level line e5ecutive+ %f t$e concern is unionized- some $ig$er personnel in t$e union $ierarc$" ma" join $im+ %t s$ould- $o0ever- be renumbered t$at b" insetting t$e personnel officer into t$e procedure at t$is step and b" giving $im aut$orit" to overrule and reverse t$e decision of t$e supervisor t$e fundamental principal of line and staff relations$ip is violated+ ! <rd step is constituted b" t$e top management to $andle grievances involving compan" 0ide issues+ %n t$is step t$e top union representative join+ #$e redressal of grievance comple5 and difficult because b" not t$e" ac6uire political $ues and colours+ %f t$e grievances to not been settled b" top management and to top union t$en in t$e first and final step it ma" be referred to an impartial outside person called an ,radiator. t$e ot$er possibilities are t$at are issue ma" be temporaril" or permanentl" dropped or t$e 0or3ers ma" go on stri3e+

T, IOPEN DOORI P-2ic' #$is polic" ma" appear ver" attractive but it $as t$e follo0ing limitations+ :+ 8nder t$is polic" t$e front line supervisor 0$o s$ould be t$e first man to 3no0 about t$e grievances of $is subordinates is b" passed+ #$e provo3es $im in t0o 0a"s+ First- $e t$in3s t$e man 0$o

s3ipped $im disrespectful+ Secondl"- $e fears t$at $e 0ill issue $is superiors displeasure because t$is 0ill be interpreted b" t$e superior as $is failure to $andle $is subordinates+ ;+ )" follo0ing an ,open4door. polic" t$e top management cannot $ave ade6uate clues to assess a supervisor2s s3ill in $andling grievances+ %t does not 3no0 0$at action- if an" t$e supervisor 0ould $ave ta3en to resolved a grievance+ <+ #op management is li3el" to be too unfamiliar 0it$ t$e 0or3 situation in 0$ic$ grievances developed to t$e able to correctl" evaluate t$e information t$at it gets+ #$ere ma" be several levels of management bet0een t$e operative emplo"ee and t$e top president of a compan"+ #$eoreticall"- eac$ level affords an e6ual opportunit" for distortion fading and dela" of certain facts on 0$ic$ a complaint ma" be based+ =+ #$oug$ t$e door of t$e e5ecutive2s office remains p$"sicall" open- ps"c$ological and social barriers prevent emplo"ees from actuall" entering it+ Some emplo"ees $esitate to be singled out as $aving a grievance+ Ot$ers are afraid t$e" 0ill incur t$eir supervisor2s disfavor+ >+ Sometimes an open door polic" is used to $ide t$e top management2s o0n $esitation to ma3e contacts 0it$ t$e operatives and t$e open door is often a slogan to conceal closed minds+

#$e 0a" t$e open4door can be most effective is for a manager to 0al3 t$roug$ it and get out among $is people+ #$e open door is for managers to 0al3 t$roug$ not emplo"ees+ t$e true test of suc$ a polic" is 0$et$er t$e top man be$ind t$e door $as an open door attitude and $is emplo"ees ps"c$ologicall" free to enter+

DESIRABLE FEATURES OF A GRIE$ANCE PROCEDURE ! grievance procedure s$ould incorporate t$e follo0ing features9

1. C-.1-%&it' <it, :i!ti.0 2 0i!2ati-. #$e procedure s$ould be designed to supplement t$e e5isting statutor" provisions 0$ere practicablet$e procedure can ma3e use of suc$ mac$iner" as t$e la0 mig$t $ave alread" provided for+

3. Acc pta(i2it' #$e grievance procedure must be accepted b" ever"bod"+ %n order to be generall" acceptable it must ensure /a1 a sense of fair4pla" and justice to t$e 0or3er- /b1 reasonable e5ercise of aut$orit" to t$e manager- and /c1 ade6uate participation of t$e union+

3. Si&p2icit' #$e procedure s$ould be simple enoug$ to be understood b" ever" emplo"ee+ #$e steps s$ould be as fe0 as possible+ '$annels for $andling grievances s$ould be carefull" developed+ *mplo"ees must 3no0 t$e aut$orities to be contacted at various levels+ %nformation about t$e procedures can be t$oroug$l" disseminated among all emplo"ees t$roug$ pictures- c$arts- diagrams etc+

5. P%-&pt. !!

Speed" settlement of a grievance is t$e corner stone of a sound personnel polic"+ ustice dela"ed is justice denied+ #$e procedure s$ould aim at a rapid disposal of t$e grievance+ #$is can be ac$ieved b" incorporating t$e follo0ing features in t$e procedure+ /a1 !s far as possible grievance s$ould be settled t$e lo0est level+ /b1 No matter s$ould ordinaril" be ta3en up at more t$an ; levels i+e+ normall" t$ere s$ould be onl" once appeal+ /c1 Different t"pes of grievances ma" be referred to appropriate aut$orities+ %t ma" be useful to classif" grievances as t$ose arising from personnel relations$ip and ot$ers arising out of conditions of emplo"ment+ %n t$e former case a grievance s$ould be ta3en up in t$e : st instance- 0it$ t$e aut$orit" in t$e line management immediatel" above t$e officer against 0$om t$e complaint is made+ #$ereafter- t$e matter ma" go to t$e grievance committee comprising representatives and management and 0or3er+ Ot$er grievances s$ould be ta3en up- in t$e : st instance 0it$ t$e aut$orit" designated b" t$e management+ #$ereafter- a reference ma" be made to t$e grievance committee and finall" to t$e top management+ /d1 #ime limit s$ould placed at eac$ step and it s$ould be rigidl" follo0ed at eac$ level+

5. T%ai.i.0 %n order to ensure effective 0or3ing of t$e grievance procedure it is necessar" t$at supervisors and t$e union representatives are given training in grievance $andling+

A. F-22-<E;p #$e 0or3ing of t$e procedure s$ould be revie0ed periodicall" b" t$e personnel department and necessar" structural c$anges introduced to ma3e it more effective+

! good grievance procedure attac3s problems as t$e" arise- e5cellent grievance procedure anticipates t$em and prevents t$en from occurring+ ! manager can 3no0 about t$e simmering even before t$e" turn into actual grievances t$roug$ several means suc$ as opinion surve"s- open door polic" suggestion sc$emes and e5it intervie0s+

BENEFITS OF GRIE$ANCE S6STEM :+ %t brings $uman problems into t$e open so t$at management can learn about t$em and tr" corrective action+ ;+ %t $elps in preventing grievance b" encouraging management to probe underl"ing problems before and to correct t$em+ #$e management catc$es and solves a problem before it becomes a grievance+ <+ %t provides emplo"ees a formalized means of emotional release for t$eir dissatisfactions+ *ven it a 0or3er does not use t$e grievance s"stem for $is o0n emotional release in a particular situation- $e feels better because $e 3no0s t$e s"stem is t$ere to use if $e 0ants to do so+ it builds 0it$in $im a sense of emotional securit"+

=+ %t $elps in establis$ing and maintaining a 0or3 culture or 0a" of life+ !s problems one interpreted in t$e grievance procedure- t$e group learns $o0 it is e5pected to respond to t$e policies t$at $ave been set up+ >+ %t acts as a c$ec3 upon arbitrar" and capricious management action+ &$en a manager 3no0s t$at $is actions are subject to c$allenge and revie0 in a grievance s"stem $e becomes more careful in ta3ing $is decisions+

POINTS TO BE REMEMBERED 8HEN HANDLING A GRIE$ANCE :+ *ver" grievance must be considered important no matter $o0 irrelevant or insignificant it is or seems+ ;+ ! grievance s$ould not be postponed in t$e $ope t$at people 0ill ,see t$e lig$t. t$emselves+ %f an e5ecutive is tired- in a bad temper or ot$er0ise feeling out of sorts- $e ma" courteousl"apologeticall" and 0it$ regret postpone a grievance $earing- but $e s$ould never sa" somet$ing t$at 0ould incur t$e distrust or enmit" of t$e aggrieved emplo"ee+ <+ !ll grievances s$ould be put in 0riting+ #$is is necessar" to avoid ambiguit" and to correctl" determine t$e e5act nature of a grievance+ =+ !ll relevant facts about a grievance s$ould be gat$ered b" t$e management and t$eir proper records maintained+ #$is 0ill convince t$e emplo"ees about management2s sincerit"- integrit" and $onest" of purpose+ Full facts 0ill also $elp t$e management in reac$ing a fair decision+ Maintenance of records is essential for future reference+ >+ #$e 0or3er s$ould be given free time off purpose $is grievance+ @+ Management s$ould ma3e a list of an solutions and later evaluate t$em one b" one in terms of t$eir total effect upon t$e organisation and not solel" upon t$eir immediate or individual effect+ #entative solutions can be determined on t$e basis of e5perience- e5ample of ot$er companies- tec$nical and trade publications and pure guess+ A+ Decision once reac$ed s$ould be communicated to t$e emplo"ee and acted upon b" t$e management+ %f t$e decision is unfavorable its legitimate foundations s$ould be 0ell e5plained+ B+ Follo04up must be done b" t$e management to determine 0$et$er action ta3en b" it $as favorabl" c$anged t$e emplo"ee2s attitude net+

SETTLEMENT OF GRIE$ANCES IN INDIAN INDUSTR6 Settlement of grievances $as not received ade6uate attention in our legislative frame 0or3 present enactments 0$ic$ onl" indirect deal 0it$ t$e redressal of individual grievances are t$e %ndustrial *mplo"ment /Standing Orders1 !ct- :C=@- t$e Factories !ct :C=B- and t$e %ndustrial Disputes !ct:C=A+ #$e %ndustrial *mplo"ment act provides t$at ever" establis$ment emplo"ing :DD or more 0or3ers s$ould frame standing orders 0$ic$ s$ould contain- among ot$er matters- provisions for means of redress for 0or3men against unfair treatment or 0rongful e5actions b" t$e emplo"er or $is agents as servants+ Similarl"- Section =C of t$e Factories !ct provides for t$e appointment of &elfare Officers in ever" factor" 0$ere in >DD or more 0or3ers are ordinaril" emplo"er+ #$ese officers are generall" entrusted 0it$ t$e tas3 of dealing 0it$ complaints and grievances+

8nder Section ;4! of t$e %ndustrial Disputes !ct /0$ic$ 0as added to t$e !ct b" an amendment made in :C@>1- t$e term ,industrial dispute. includes all differences bet0een an individual 0or3man and $is emplo"er connected 0it$- or arising out of $is disc$arge- dismissal- retrenc$ment or termination not 0it$standing t$at no ot$er 0or3man nor an" union of 0or3man is a partl" to dispute+

%n order to meet t$e s$ort coming- t$e %ndustrial Disputes !ct+ :CB;- 0$ic$ $as not "et been enforced provides for t$e setting up of grievance settlement aut$orities and reference of certain individual disputes to suc$ aut$orities+ Section C4' of t$e amended !ct provides+

:+ #$e emplo"er in relation to ever" industrial establis$ment in 0$ic$ >D or more 0or3man are emplo"ed or $ave been emplo"ed on an" da" in t$e preceding :; mont$s- s$all provide for- in accordance 0it$ t$e rules made in t$at be$alf under t$is !ct- a grievance Settlement !ut$orit" for t$e settlement of industrial disputes connected 0it$ an individual 0or3man emplo"ed in t$e establis$ment+ ;+ &$ere an industrial dispute connected 0it$ an individual 0or3man arises in an establis$ment referred to in sub4section /:1 a 0or3man or an" trade union of 0or3men of 0$ic$ suc$ 0or3man is a member- refer in suc$ manner as ma" be prescribed suc$ dispute to t$e (rievance Settlement !ut$orit" provided for b" t$e emplo"er under t$at sub4section for settlement+ <+ #$e (rievance Settlement !ut$orit" referred to in sub4section /:1 s$all follo0 suc$ procedure and complete its proceedings 0it$ in suc$ period as ma" be prescribed+ =+ No reference s$all be made under c$apter %%% 0it$ respect to an" dispute referred to in t$is section unless suc$ dispute $as been referred to t$e (rievance Settlement !ut$orit" concerned and t$e decision of t$e (rievance Settlement !ut$orit" is not acceptable to an" of t$e parties to t$e dispute+

"UESTIONS :+ Describe t$e meaning of t$e term 7grievance2+ ;+ Point out t$e causes for grievances <+ Discuss t$e grievance procedure 0it$ its desirable features+

B. B. A. D 0%

E:a&i.ati-.

M-/ 2 "; !ti-.! Pap % Pap % 3.5 P%i.cip2 ! -1 P %!-.. 2 Ma.a0 & .t Ma:. Ma%?! 1GG Pa%t A 7 A.!< % a.' 1i* @; !ti-.! 7 E :+ *5plain t$e importance of managing $uman resources+ ;+ Describe t$e functions of a Personal Manager+ <+ &$at is ob !nal"sisM Point out t$e differences bet0een job Description and ob Specification+ =+ Describe t$e Principles of a good promotion polic"+ >+ &$at are t$e various t"pes of transfersM @+ &$at are t$e objectives of performance appraisal in an organisationM A+ Describe t$e principles of a good compensation planM B+ &$at is disciplineM State t$e principles of emplo"ees2 good discipline+ Ti& 3 H-;%! (5 : C J 5G )

Pa%t B 7 A.!< % a.' 1-;% "; !ti-.!7E

(5:15 J AG)

C+ Discuss t$e objectives of Personal Management and state t$e structure of a Personal Department in an organisation+ :D+ State t$e importance of $uman resources planning and nature in detail t$e HRP process+ ::+ Discuss in detail t$e process of selecting t$e emplo"ees in an organisation+ :;+ Discuss t$e various performance appraisal met$ods and state t$e merit of eac$ met$od+ :<+ State t$e important principles of a good 0age and salar" administration+ Point out t$e various met$ods of 0age pa"ment to emplo"ees+ :=+ Discuss t$e various 0elfare and safet" measures provided under t$e la0 for t$e benefit of emplo"ees+ :>+ &$at are t$e causes for grievancesM State t$e grievance $andling procedures as used in business organisation+