Professional Documents
Culture Documents
Training and Development
Training and Development
ANSWERS TO UNIVERSITY
QUESTION PAPERS
(1998, 1999, 2000, 2001, 2002)
1
INDEX
HUMAN RESOURCE MANAGEMENT ( H R M )
STRATEGIC HUMAN RESOURCE MANAGEMENT: -
HUMAN RESOURCE DEVELOPMENT
TEAM EFFECTIVENESS
HUMAN RESOURCE PLANNING ( H R P )
JOB ANALYSIS
JOB DESCRIPTION
JOB SPECIFICATIONS
JOB EVALUATION
JOB DESIGN
DESIGNING JOBS MOTIVATING JOBS
JOB SATISFACTION
WORK SAMPLING
RECRUITMENT & SELECTION
TRAINING & DEVELOPMENT
INDUCTION & ORIENATION
PERFORMANCE APPRAISALS
INCENTIVES BASED COMPENSATION
HUMAN RESOURCE AUDIT
MOTIVATION THEORIES
MORALE
PERSONNEL POLICIES
WORKERS PARTICIPATION IN MANAGEMENT
UNIONS
ORGANIATIONAL DOWNSIING
MEANING OF ORGANIATION STRUCTURE
HUMAN RESOURCE MANAGEMENT ( H R M )
Definition 1 Integrati on
HRM is a series of integrated decisions that form the employment relationships; their
!ality contri"!tes to the a"ility of the organi#ations and the employees to achie$e their
o"%ecti$es&'
Definition Infl uenci ng
HRM is concerned (ith the people dimensions in management& )ince e$ery organi#ation is
made !p of people, ac!iring their ser$ices, de$eloping their s*ills, moti$ating them to
higher le$els of performance and ens!ring that they contin!e to maintain their commitment
to the organi#ation are essential to achie$ing organi#ational o"%ecti$es& +his is tr!e,
regardless of the type of the organi#ation , go$ernment, "!siness, ed!cation, health,
recreational, or social action&'
2O1 DESCRIPTION
7o" 0escription implies o"%ecti$e listing of the %o" title, tas*s, and responsi"ilities in$ol$ed
in a %o"&'
7o" description is a (ord pict!re in (riting of the d!ties, responsi"ilities and organi#ational
relationships that constit!tes a gi$en %o" or position& /t defines contin!ing (or* assignment
and a scope of responsi"ility that are s!fficiently different from those of the other %o"s to
(arrant a specific title& 7o" description is a "road statement of p!rpose, scope, d!ties and
responsi"ilities of a partic!lar %o"&
Content( of 2o0 De(-%i)tion
1& 7o" /dentification
2& 7o" )!mmary
9& 7o" 0!ties and Responsi"ilities
:& )!per$ision specification
<& Machines, tools and materials
=& Aor* conditions
4& Aor* ha#ards
8& 0efinition of !n!s!al terms
"o%'*t of 2o0 De(-%i)tion
7o" +itle
RegionG5ocation
0epartment
Reporting to (-perational and Managerial)
-"%ecti$e
6rincipal d!ties and responsi"ilities
"e*t/%e( of Goo9 2o0 De(-%i)tion
1& Bp to date
2& 6roper 7o" +itle
9& @omprehensi$e 7o" )!mmary
:& @lear d!ties and responsi"ilities
<& >asily !nderstanda"le
=& )tate %o" re!irements
4& )pecify reporting relationships
8& )ho(case degrees of diffic!lties
9& /ndicates opport!nities for career de$elopment
10& -ffer "ird.s1eye1$ie( of primary responsi"ilities
!
2O1 SPECI"ICATIONS
7o" )pecification in$ol$es listing of employee !alifications, s*ills and a"ilities re!ired to
meet the %o" description& +hese specifications are needed to do %o" satisfactorily&'
/n other (ords it is a statement of minim!m and accepta"le h!man !alities necessary to
perform %o" properly& 7o" specifications see*s to indicate (hat *ind of persons may "e
e?pected to most closely appro?imate the role re!irements and th!s it is "asically
concerned (ith matters of selection, screening and placement and is intended to ser$e as a
g!ide in hiring&
Content( of 2o0 S)e-ifi-*tion(
1& 6hysical @haracteristics
2& 6sychological characteristics
9& 6ersonal characteristics
:& Responsi"ilities
<& 0emographic feat!res
2!rther the %o" specifications can "e di$ided into three "road categories
-ssential Attributes
!esirable Attributes
#ontra4Indicators 5 indicators hampering the success of $ob
<
2O1 EVA8UATION
7o" >$al!ation in$ol$es determination of relati$e (orth of each %o" for the p!rpose of
esta"lishing (age and salary differentials& Relati$e (orth is determined mainly on the "asis
of %o" description and %o" specification only& 7o" >$al!ation helps to determine (ages and
salary grades for all %o"s& >mployees need to "e compensated depending on the grades of
%o"s (hich they occ!py& Rem!neration also in$ol$es fringe "enefits, "on!s and other
"enefits& @learly rem!neration m!st "e "ased on the relati$e (orth of each %o"& /gnoring
this "asic principle res!lts in ine!ita"le compensation& 8 perception of ine!ity is a s!re
(ay of de1moti$ating an employee&
7o" e$al!ation is a process of analy#ing and assessing the $ario!s %o"s systematically to
ascertain their relati$e (orth in an organi#ation&
7o"s are e$al!ated on the "asis of content, placed in order of importance& +his esta"lishes
7o" Hierarchies, (hich is a p!rpose of fi?ation of satisfactory (age differentials among
$ario!s %o"s&
7o"s are ran*ed (not %o"holders)
S-o)e of 2o0 E4*&/*tion
+he %o" e$al!ation is done for the p!rpose of (age and salary differentials, demand for and
s!pply of la"or, a"ility to pay, ind!strial parity, collecti$e "argaining and the li*e&
P%o-e(( of 2o0 E4*&/*tion#
1& 0efining o"%ecti$es of %o" e$al!ation
a& /dentify %o"s to "e e$al!ated (3enchmar* %o"s or all %o"s)
"& Aho sho!ld e$al!ate %o"D
c& Ahat training do the e$al!ators needD
d& Ho( m!ch time in$ol$edD
e& Ahat are the criteria for e$al!ationD
f& Methods of e$al!ation to "e !sed
2& Aage )!r$ey
9& >mployee @lassification
:& >sta"lishing (age and salary differentials&
Met;o9( of 2o0 E4*&/*tion
An*&.ti-*& Met;o9(
Point R*n:in+ Met;o9(E 0ifferent factors are selected for different %o"s (ith
accompanying differences in degrees and points&
"*-to% Co')*%i(on Met;o9# +he important factors are selected (hich can "e
ass!med to "e common to all %o"s& >ach of these factors are then ran*ed (ith other
%o"s& +he (orth of the %o" is then ta*en "y adding together all the point $al!es&
Non$An*&.ti-*& Met;o9(
R*n:in+ Met;o9# 7o"s are ran*ed on the "asis of its title or contents& 7o" is not
"ro*en do(n into factors etc&
2o0 G%*9in+ Met;o9# /t is "ased on the %o" as a (hole and the differentiation is made
on the "asis of %o" classes and grades& /n this method it is important to form a grade
description to co$er discerni"le differences in s*ills, responsi"ilities and other
characteristics&
>
Pitf*&&( of 2o0 E4*&/*tion#
>nco!rages employees on ho( to ad$ance in position (hen there may "e limited
opport!nities for enhancement as a res!lt of do(nsi#ing&
/t promotes internal foc!s instead of c!stomer orientation
Hot s!ita"le for for(ard loo*ing organi#ations, (hich has trimmed m!ltiple %o" titles
into t(o or three "road %o"s&
?
2O1 DESIGN
+he 5ogical )e!ence to 7o" 8nalysis is 7o" 0esign&
Definition 1# Integrati on of wor', rewards and 0ual i fi cati on
7o" 0esign integrates (or* content (tas*s, f!nctions, relationships), the re(ards and
!alifications re!ired incl!ding s*ills, *no(ledge and a"ilities for each %o" in a (ay that
meets the needs of employees and the organi#ation&'
Ste)( in 2o0 De(i+n# $
1& )pecification of /ndi$id!al +as*s
2& )pecification of Methods of +as*s 6erformance
9& @om"ination of +as*s into )pecific 7o"s to "e assigned to indi$id!als
"*-to%( *ffe-tin+ 2o0 De(i+n# $
O%+*ni5*tion*& f*-to%(#
@haracteristics of +as*s (6lanning, >?ec!tion and @ontrolling of +as*)
Aor* 2lo( (6rocess )e!ences)
>rgonomics (+ime ; Motion )t!dy)
Aor* 6ractices ()et of (ays of performing tas*s)
En4i%on'ent*& "*-to%(#
>mployee 8"ilities and 8$aila"ility
)ocial and @!lt!ral >?pectations
1e;*4io%*& E&e'ent(#
2eed"ac*
8!tonomy
Bse of 8"ilities
Lariety
TECHNIQUES O" 2O1 DESIGN# $
Wo%: Si')&ifi-*tion# 7o" is simplified or speciali#ed& +he %o" is "ro*en do(n into
small parts and each part is assigned to an indi$id!al& +o "e more specific, (or*
simplification is mechanical pacing of (or*, repetiti$e (or* processes, (or*ing only on one
part of a prod!ct, predetermining tools and techni!es, restricting interaction amongst
employees, fe( s*ills re!irement& Aor* simplification is !sed (hen %o"s are not
speciali#ed&
2o0 Rot*tion# Ahen inc!m"ents "ecome "ore of ro!tine %o"s, %o" rotation is an ans(er
to it& Here %o"s remain !nchanged, "!t the inc!m"ents shift from one %o" to another& -n
the positi$e side, it increases the intrinsic re(ard potential of a %o" "eca!se of different
s*ills and a"ilities needed to perform it& Aor*ers "ecome more competent in se$eral %o"s,
*no( $ariety of %o"s and impro$e the self1image, personal gro(th& 2!rther the (or*er
"ecomes more $al!a"le to the organi#ation& 6eriodic %o" changes can impro$e
interdepartmental cooperation& -n the negati$e side, it may not "e m!ch enth!siastic or
efficiency may not "e more& 3esides %o"s may not impro$e the relationships "et(een tas*,
(hile acti$ities and o"%ecti$es remain !nchanged& 2!rther training costs also rise and it can
also de1moti$ate intelligent and am"itio!s trainees (ho see* specific responsi"ilities in their
chosen specialties&
2o0 En&*%+e'ent# /t means e?panding the n!m"er of tas*s, or d!ties assigned to a
gi$en %o"& 7o" enlargement is nat!rally opposite to (or* simplification& 8dding more tas*s
or d!ties to a %o" does not mean that ne( s*ills and a"ilities are needed& +here is only
hori#ontal e?pansion& /t is (ith same s*ills ta*ing additional responsi"ilities li*e e?tending
7
(or*ing ho!rs etc& 7o" enlargement may in$ol$e "rea*ing !p of the e?isting (or* system
and redesigning a ne( (or* system& 2or this employees also need to "e trained to ad%!st to
the ne( system& 7o" enlargement is said to contri"!te to employee moti$ation "!t the
claim is not $alidated in practice&
,enefits of o! Enlargement:
1& +as* Lariety
2& Meaningf!l Aor* Mod!les
9& 2!ll 8"ility Btili#ation
:& Aor*er 6aced @ontrol
<& Meaningf!l 6erformance 2eed"ac*
Disadvantages of o! Enlargement
1& High +raining @osts
2& Redesigning e?isting (or* system re!ired
9& 6rod!cti$ity may not increase necessarily
:& Aor*load increases
<& Bnions demand pay,hi*e
=& 7o"s may still remain "oring and ro!tine
2o0 En%i-;'ent# 7o" enrichment is impro$isation of "oth tas*s efficiency and h!man
satisfaction "y "!ilding into people.s %o"s, !ite specifically, greater scope for personal
achie$ement and recognition, more challenging and responsi"le (or* and more opport!nity
for indi$id!al ad$ancement and gro(th& 8n enriched %o" (ill ha$e more responsi"ility, more
a!tonomy ($ertical enrichment), more $ariety of tas*s (hori#ontal enrichment) and more
gro(th opport!nities& +he employee does more planning and controlling (ith less
s!per$ision "!t more self1e$al!ation& /n other (ords, transferring some of the s!per$isor.s
tas*s to the employee and ma*ing his %o" enriched&
1enefit( of 2o0 en%i-;'ent
1& /t "enefits employee and organi#ation in terms of increased moti$ation,
performance, satisfaction, %o" in$ol$ement and red!ced a"senteeism&
2& 8dditional feat!res in %o" meet certain psychological needs of %o"holders d!e to
s*ill $ariety, identity, significance of %o" etc&
9& /t also adds to employee self1esteem and self1control&
:& 7o" enrichment gi$es stat!s to %o"holder and acts as a strong satisfier in one.s
life&
<& 7o" enrichment stim!lates impro$ements in other areas of organi#ation&
=& >mpo(erment is a "y1prod!ct of %o" enrichment& /t means passing on more
a!thority and responsi"ility&
De'e%it( of 2o0 En%i-;'ent
1& 5a#y employees may not "e a"le to ta*e additional responsi"ilities and po(er& /t
(on.t fetch the desired res!lts for an employee (ho is not attenti$e to(ards his
%o"&
2& Bnions resistance, increased cost of design and implementation and limited
research on long term effect of %o" enrichment are some of the other demerits&
9& 7o" enrichment itself might not "e a great moti$ator since it is %o"1intrinsic
factor& 8s per the t(o1factor moti$ation theory, %o" enrichment is not eno!gh& /t
sho!ld "e preceded "y hygienic factors etc&
:& 7o" enrichment ass!mes that (or*ers (ant more responsi"ilities and those
(or*ers (ho are moti$ated "y less responsi"ility, %o" enrichment s!rely de1
moti$ates them
<& Aor*ers participation may affect the enrichment process itself&
@
=& @hange is diffic!lt to implement and is al(ays resisted as %o" enrichment "rings
in a changes the responsi"ility&
A/tono'o/( of Se&f$Di%e-te9 Te*'(# >mpo(erment res!lts in self1directed (or*
teams& 8 self ,directed team is an intact gro!p of employees responsi"le for (hole (or*
segment, they (or* together, handle day1to1day pro"lems, plan and control, and are highly
effecti$e teams&
Hi+; Pe%fo%'*n-e Wo%: De(i+n# /mpro$ing performance in an en$ironment (here
positi$e and demanding goals are set leads to high performance (or* design& /t starts from
the principle of a!tonomo!s gro!ps (or*ing and de$eloping an approach, (hich ena"les
gro!p to (or* effecti$ely together in sit!ations (here the rate of inno$ation is $ery high&
-perational fle?i"ility is important and there is the need for employees to gain and apply
ne( s*ills !ic*ly (ith minim!m s!per$ision& Ho(e$er d!e to "!rea!cracy high
performance (or* design does not (or*&
C
DESIGNING 2O1S MOTIVATING 2O1S
+he concept of moti$ating %o"s relates to 7o" design& 7o" design affects employee
prod!cti$ity, moti$ation and satisfaction& 7o" design is a conscio!s effort to organi#e tas*s,
d!ties and responsi"ilities into a !nit of (or* to achie$e certain o"%ecti$es&
Ho( a %o" design creates a moti$ating %o" can "e seen (ith the help of certain components
of %o" design, namely, %o" rotation, %o" enlargement, %o" enrichment, (or* simplification
etc&
Aor* simplification simplifies the %o" "y "rea*ing do(n the %o" into small parts& )implified
%o"s are easy to perform hence employees find it easy to do& +raining re!irements are
red!ced and it "enefits the organi#ations in terms of cost&
7o" rotation means mo$ement of employees of %o" to %o" across the organi#ation& /t
impro$es the intrinsic re(ard potential of a %o" "eca!se of different s*ills and a"ilities are
needed to perform a %o"& Aor*ers "ecome more competent in se$eral %o"s rather than only
one& /t also impro$es (or*ers self image, pro$ides personal gro(th and ma*es (or*ers
more $al!a"le to the organi#ation& 6eriodic %o" change can impro$e inter1departmental
cooperation& >mployees "ecome more !nderstanding to each other.s pro"lems&
@onse!ently it pro$ides a high le$el of moti$ation to employees "eca!se %o"s itself
"ecome moti$ators& Hence %o" rotation helps the %o" "ecome more moti$ating&
7o" enlargement in$ol$es e?panding n!m"er of tas*s or d!ties assigned to a gi$en %o"&
7o" enrichment in$ol$es impro$ing tas* efficiency and h!man satisfaction& 7o" enrichment
pro$ides greater scope for personal achie$ement and recognition, more challenging and
responsi"le (or* and more opport!nity for indi$id!al ad$ancement and gro(th& 8n enriched
%o" gi$es $ertical enrichment in the form of more responsi"ility and a!tonomy and a
hori#ontal enrichment in the form of $ariety of tas*s and more gro(th opport!nities& +he
employee does more planning and controlling (ith less s!per$ision "!t more self1
e$al!ation& 8ll these factors lead to increased le$el of moti$ation and hence ma*e the %o"s
more moti$ated&
@onsidering a"o$e e?amples, (e can say that designing %o"s is act!ally !sing the rele$ant
and right techni!es of %o" design, li*e rotation, enrichment, simplifications and ma*e the
%o"s more moti$ating to perform&
)o (e can say that 0esigning 7o"s is act!ally creating Moti$ated 7o"s&
!E
2O1 SATIS"ACTION
7o" satisfaction is the res!lt of $ario!s attit!des possessed "y an employee to(ards his %o",
related factors and life in general& +he attit!des related to %o" may "e (ages, s!per$ision,
steadiness, (or*ing conditions, ad$ancement opport!nities, recognitions, fair e$al!ation of
(or*, social relations on %o", prompt settlement of grie$ances etc&
/n short %o" satisfaction is a general attit!de, (hich is the res!lt of many specific attit!des
in three areas namely, %o" factors, indi$id!al characteristics and gro!p relationships o!tside
the %o"&
Co')onent( of 2o0 S*ti(f*-tion
Pe%(on*& f*-to%(# )e?, 0ependents, 8ge, +imings, /ntelligence, >d!cation and 6ersonality&
2o0 in;e%ent f*-to%(# +ype of (or*, )*ills, -cc!pational stat!s, Ceography, )i#e of plant
M*n*+e'ent -ont%o&&e9 f*-to%(# )ec!rity, 6ayment, 2ringe "enefits, 8d$ancement
opport!nities and Aor*ing conditions, @o1(or*ers, Responsi"ilities, )!per$ision
2o0 S*ti(f*-tion , 1e;*4io% %e&*tion(;i) i( 9e(-%i0e9 t;%o/+; fo&&o=in+ e6*')&e(B
)atisfaction ; +!rno$er
)atisfaction ; 8"senteeism
)atisfaction ; 8ccidents
)atisfaction ; 7o" 6erformance
!1
WORI SAMP8ING
Definition 1# )easuring and 0uantifying activities
M8 meas!rement techni!e for the !antitati$e analysis of non1repetiti$e or irreg!larly
occ!rring acti$ity&M
Me*nin+ of Wo%: S*')&in+
Aor* sampling is "ased on the theory that the percentage of the n!m"er of o"ser$ations
on a partic!lar acti$ity is a relia"le meas!re of the percentage of the total act!al time spent
on that acti$ity&
Aor* sampling operates "y an o"ser$er ta*ing a series of random o"ser$ations on a
partic!lar MthingM of interest (machine, operating room, doc*, etc&) to o"ser$e its MstateM
((or*ing, idle, sleeping, empty, etc&)& Ahen eno!gh samples are ta*en, an analysis of the
o"ser$ations yields a statistically $alid indication of the states for each thing analy#ed&
8ss!me, for e?ample, that yo! (ish to determine the proportion of time a factory operator
is (or*ing or idle& 8lso ass!me that 200 random o"ser$ations (ere made of the operator
and d!ring 2: of these he or she (as o"ser$ed to "e idle& +herefore, yo! find that the
indi$id!al is (or*ing 14=G200 N 88O of the time&
A94*nt*+e( of Wo%: S*')&in+
/t is relati$ely ine?pensi$e to !se and e?tremely helpf!l in pro$iding a deeper
!nderstanding of all types of operations&
Ahen properly !sed, it can help pinpoint those areas, (hich sho!ld "e analy#ed in, f!rther
detail and can ser$e as a meas!re of the progress "eing made in impro$ing operations&
Q/e(tion( of =o%: (*')&in+ (t/9.
Ahat is o!r e!ipmentGasset !tili#ationD
Ahen (e are not adding $al!e to the prod!ct, ho( are (e spending o!r timeD
Ho( are o!r inter1dependent systems performingD
Ahere sho!ld (e foc!s o!r contin!o!s impro$ement acti$itiesD
Di(tin-tion 0et=een Wo%: (*')&in+ *n9 JTi'e St/9ie(J
Aor* sampling is lo(er cost "eca!se it !ses random samples instead of contin!o!s
o"ser$ations&
Many operators or machines can "e st!died "y a single o"ser$er
Aor* sampling can span se$eral days or (ee*s, th!s minimi#ing the effects of day to
day load or e!ipment $ariations
Aor* )ampling tends to minimi#e operator "eha$ior modification d!ring o"ser$ation&
Aor* )ampling, in general, does not re!ire a trained time1st!dy analyst to ta*e the
o"ser$ations& 8lso, stop(atches or other timing de$ices are not re!ired& Many st!dies
ma*e !se of off1shift technicians or operators to ta*e the o"ser$ations&
Wo%: (*')&in+ Met;o9o&o+.
!
8n analyst R8H0-M5P o"ser$es an acti$ity (e!ipment, operating room, prod!ction line)
and notes the partic!lar states of the acti$ity at each o"ser$ation&
+he ratio of the n!m"er of o"ser$ations of a gi$en state of the acti$ity to the total n!m"er
of o"ser$ations ta*en (ill appro?imate the percentage of time that the acti$ity is in that
gi$en state&
Hote that random o"ser$ations are $ery critical for a (or* sampling st!dy& 8 "rief e?ample
might "e that 44 of 100 o"ser$ations sho(ed a machine to "e r!nning& Ae might then
concl!de, (ithin certain statistical limits, that the e!ipment is operational 44O of the
time&
!!
RECRUITMENT , SE8ECTION
RECRUITMENT
Definition Of Re-%/it'ent# 6i ndi ng and Attracti ng Appl i cati ons
Recr!itment is the 6rocess of finding and attracting capa"le applicants for employment&
+he 6rocess "egins (hen ne( recr!its are so!ght and ends (hen their applications are
s!"mitted& +he res!lt is a pool of application from (hich ne( employees are selected&'
MEANING O" RECRUITMENT#
Recr!itment is !nderstood as the process of searching for and o"taining applicants for %o"s,
from among them the right people can "e selected& +ho!gh theoretically recr!itment
process is said to end (ith the receipt of applications, in practice the acti$ity e?tends to the
screening of applications so as to eliminate those (ho are not !alified for the %o"&
PURPOSE AND IMPORTANCE O" RECRUITMENT# $
1& 0etermine the present and f!t!re re!irements in con%!nction (ith personnel
planning and %o" analysis acti$ities
2& /ncrease the pool of %o" candidates at minim!m cost
9& Help increase s!ccess rate of selection process "y red!cing n!m"er of !nder1
!alified or o$er1!alified applications&
:& Red!ce the pro"a"ility that %o" applicants once selected (o!ld lea$e shortly
<& Meet legal and social o"ligations
=& /dentify and prepare potential %o" applicants
4& >$al!ate effecti$eness of $ario!s recr!itment techni!es and so!rces for %o"
applicants&
"ACTORS GOVERNING RECRUITMENT
E6te%n*& "*-to%(#
0emand and )!pply ()pecific )*ills)
Bnemployment Rate (8rea1(ise)
5a"or Mar*et @onditions
6olitical and 5egal >n$ironment (Reser$ations, 5a"or la(s)
/mage
Inte%n*& "*-to%(
Recr!itment 6olicy (/nternal Hiring or >?ternal HiringD)
H!man Reso!rce 6lanning (6lanning of reso!rces re!ired)
)i#e of the -rgani#ation (3igger the si#e lesser the recr!itment pro"lems)
@ost
Cro(th and >?pansion 6lans
RECRUITMENT PROCESS
Re-%/it'ent P&*nnin+
H!m"er of contacts
+ypes of contacts
Re-%/it'ent St%*te+. De4e&o)'ent
Ma*e or 3!y >mployees
+echnological )ophistication
Ahere to loo*
Ho( to loo*
!<
Inte%n*& Re-%/it'ent (So/%-e 1)
6resent employees
>mployee referrals
+ransfers ; 6romotions
2ormer >mployees
6re$io!s 8pplicants
>$al!ation of /nternal Recr!itment
E6te%n*& Re-%/it'ent (So/%-e )
6rofessionals or +rade 8ssociations
8d$ertisements
>mployment >?changes
@amp!s Recr!itment
Aal*1ins /nter$ie(s
@ons!ltants
@ontractors
0isplaced 6ersons
Radio ; +ele$ision
8c!isitions ; Mergers
@ompetitors
>$al!ation of >?ternal Recr!itment
Se*%-;in+
)o!rce acti$ation
)elling
)creening of 8pplications
E4*&/*tion *n9 Co(t Cont%o&
)alary @ost
Management ; 6rofessional +ime spent
8d$ertisement @ost
6rod!cing )!pporting literat!re
Recr!itment -$erheads and >?penses
@ost of -$ertime and -!tso!rcing
@ons!ltant.s fees
E4*&/*tion of Re-%/it'ent P%o-e((
Ret!rn rate of applications sent o!t
)!ita"le @andidates for selection
Retention and 6erformance of selected candidates
Recr!itment @ost
+ime lapsed data
/mage pro%ection
INTERNA8 RECRUITMENT
A94*nt*+e( Di(*94*nt*+e(
1& 5ess @ostly
2& @andidates already oriented to(ards
organi#ation
9& -rgani#ations ha$e "etter *no(ledge
a"o!t internal candidates
:& >mployee morale and moti$ation is
enhanced
1& -ld concept of doing things
2& /t a"ets raiding
9& @andidates c!rrent (or* may "e
affected
:& 6olitics play greater roles
<& Morale pro"lem for those not
promoted&
EXTERNA8 RECRUITMENT
A94*nt*+e( Di(*94*nt*+e(
1& 3enefits of ne( s*ills and talents
2& 3enefits of ne( e?periences
9& @ompliance (ith reser$ation policy
1& 3etter morale and moti$ation
associated (ith internal recr!iting is
denied
!>
"ecomes easy
:& )cope for resentment, %ealo!sies, and
heart"!rn are a$oided&
2& /t is costly method
9& @hances of creeping in false positi$e
and false negati$e errors
:& 8d%!stment of ne( employees ta*es
longer time&
SE8ECTION# $
MEANING O" SE8ECTION#
)election is the process of pic*ing !p indi$id!als (o!t of the pool of %o" applicants) (ith
re!isite !alifications and competence to fill %o"s in the organi#ation& 8 formal definition of
)election is as !nder
Definition of Se&e-tion# +rocess of di fferenti ati ng
)election is the process of differentiating "et(een applicants in order to identify and hire
those (ith a greater li*elihood of s!ccess in a %o"&'
DI""ERENCE 1ETWEEN RECRUITMENT AND SE8ECTION#
Re-%/it'ent Se&e-tion
1& Recr!itment refers to the process of
identifying and enco!raging
prospecti$e employees to apply for
%o"s&
2& Recr!itment is said to "e positi$e in
its approach as it see*s to attract as
many candidates as possi"le&
1& )election is concerned (ith pic*ing !p
the right candidates from a pool of
applicants&
2& )election on the other hand is
negati$e in its application in as m!ch
as it see*s to eliminate as many
!n!alified applicants as possi"le in
order to identify the right candidates&
PROCESS F STEPS IN SE8ECTION
1. P%e&i'in*%. Inte%4ie=# +he p!rpose of preliminary inter$ie(s is "asically to
eliminate !n!alified applications "ased on information s!pplied in application forms&
+he "asic o"%ecti$e is to re%ect misfits& -n the other hands preliminary inter$ie(s is
often called a co!rtesy inter$ie( and is a good p!"lic relations e?ercise&
2. Se&e-tion Te(t(# 7o"see*ers (ho past the preliminary inter$ie(s are called for
tests& +here are $ario!s types of tests cond!cted depending !pon the %o"s and the
company& +hese tests can "e 8ptit!de +ests, 6ersonality +ests, and 8"ility +ests and are
cond!cted to %!dge ho( (ell an indi$id!al can perform tas*s related to the %o"& 3esides
this there are some other tests also li*e /nterest +ests (acti$ity preferences),
Craphology +est (Hand(riting), Medical +ests, 6sychometric +ests etc&
3. E')&o.'ent Inte%4ie=# +he ne?t step in selection is employment inter$ie(& Here
inter$ie( is a formal and in1depth con$ersation "et(een applicant.s accepta"ility& /t is
considered to "e an e?cellent selection de$ice& /nter$ie(s can "e -ne1to1-ne, 6anel
/nter$ie(, or )e!ential /nter$ie(s& 3esides there can "e )tr!ct!red and Bnstr!ct!red
inter$ie(s, 3eha$ioral /nter$ie(s, )tress /nter$ie(s&
4. Refe%en-e , 1*-:+%o/n9 C;e-:(# Reference chec*s and "ac*gro!nd chec*s
are cond!cted to $erify the information pro$ided "y the candidates& Reference chec*s
can "e thro!gh formal letters, telephone con$ersations& Ho(e$er it is merely a formality
and selections decisions are seldom affected "y it&
5. Se&e-tion De-i(ion# 8fter o"taining all the information, the most critical step is the
selection decision is to "e made& +he final decision has to "e made o!t of applicants
(ho ha$e passed preliminary inter$ie(s, tests, final inter$ie(s and reference chec*s&
+he $ie(s of line managers are considered generally "eca!se it is the line manager (ho
is responsi"le for the performance of the ne( employee&
!?
6. P;.(i-*& E6*'in*tion# 8fter the selection decision is made, the candidate is
re!ired to !ndergo a physical fitness test& 8 %o" offer is often contingent !pon the
candidate passing the physical e?amination&
7. 2o0 Offe%# +he ne?t step in selection process is %o" offer to those applicants (ho
ha$e crossed all the pre$io!s h!rdles& /t is made "y (ay of letter of appointment&
8. Cont%*-t of E')&o.'ent# 8fter the %o" offer is made and candidates accept the
offer, certain doc!ments need to "e e?ec!ted "y the employer and the candidate& Here
is a need to prepare a formal contract of employment, containing (ritten contract!al
terms of employment etc&
ESSENTIA8S O" A GOOD SE8ECTION PRACTICE
1& 0etailed %o" descriptions and %o" specifications prepared in ad$ance and endorsed "y
personnel and line management
2& +rained the selectors
9& 0etermine aids to "e !sed for selection process
:& @hec* competence of recr!itment cons!ltants "efore retention
<& /n$ol$e line managers at all stages
=& 8ttempt to $alidate the proced!re
4& Help the appointed candidate to s!cceed "y training and management de$elopment
1ARRIERS TO E""ECTIVE SE8ECTION# $
1. Pe%-e)tion# Ae all percei$e the (orld differently& -!r limited percept!al a"ility is
o"$io!sly a st!m"ling "loc* to the o"%ecti$e and rational selection of people&
2. "*i%ne((# 3arriers of fairness incl!des discrimination against religion, region, race or
gender etc&
3. V*&i9it.# 8 test that has "een $alidated can differentiate "et(een the employees (ho
can perform (ell and those (ho (ill not& Ho(e$er it does not predict the %o" s!ccess
acc!rately&
4. Re&i*0i&it.# 8 relia"le test may fail to predict %o" performance (ith precision&
5. P%e((/%e# 6ress!re "ro!ght on selectors "y politicians, "!rea!crats, relati$es, friends
and peers to select partic!lar candidate are also "arriers to selection&
!7
TRAINING , DEVE8OPMENT
Definition of T%*inin+ , De4e&o)'ent# Improve performance
7%raining 8 !evelopment is any attempt to impro$e c!rrent or f!t!re employee
performance "y increasing an employee.s a"ility to perform thro!gh learning, !s!ally "y
changing the employee.s attit!de or increasing his or her s*ills and *no(ledge&'
MEANING O" TRAINING , DEVE8OPMENT# $
+he need for +raining and 0e$elopment is determined "y the employee.s performance
deficiency, comp!ted as follo(s&
+raining ; 0e$elopment Heed N )tandard 6erformance , 8ct!al 6erformance
Ae can ma*e a distinction among +raining, 0e$elopment and >d!cation&
Di(tin-tion 0et=een T%*inin+ *n9 E9/-*tion
T%*inin+ E9/-*tion
8pplication oriented
7o" e?perience
)pecific +as* in mind
Harro( 6erspecti$e
+raining is 7o" )pecific
+heoretical -rientation
@lassroom learning
@o$ers general concepts
Has 3road 6erspecti$e
>d!cation is no "ar
T%*inin+# +raining refers to the process of imparting specific s*ills& 8n employee
!ndergoing training is pres!med to ha$e had some formal ed!cation& Ho training program
is complete (itho!t an element of ed!cation& Hence (e can say that +raining is offered to
operati$es&
E9/-*tion# /t is a theoretical learning in classrooms& +he p!rpose of ed!cation is to teach
theoretical concepts and de$elop a sense of reasoning and %!dgment& +hat any training and
de$elopment program m!st contain an element of ed!cation is (ell !nderstood "y HR
)pecialists& 8ny s!ch program has !ni$ersity professors as reso!rce persons to enlighten
participants a"o!t theoretical *no(ledge of the topics proposed to disc!ss& /n fact
organi#ations dep!te or enco!rage employees to do co!rses on part time "asis& @>-s are
*no(n to attend refresher co!rses cond!cted "y "!siness schools& +he ed!cation is more
important for managers and e?ec!ti$es rather than lo( cadre (or*ers& 8ny(ays ed!cation
is common to all employees, their grades not(ithstanding&
De4e&o)'ent# 0e$elopment means those learning opport!nities designed to help
employees to gro(& 0e$elopment is not primarily s*ills oriented& /nstead it pro$ides the
general *no(ledge and attit!des, (hich (ill "e helpf!l to employers in higher positions&
>fforts to(ards de$elopment often depend on personal dri$e and am"ition& 0e$elopment
acti$ities s!ch as those s!pplied "y management de$elopment programs are generally
$ol!ntary in nat!re& 0e$elopment pro$ides *no(ledge a"o!t "!siness en$ironment,
management principles and techni!es, h!man relations, specific ind!stry analysis and the
li*e is !sef!l for "etter management of a company&
!@
O03e-ti4e( of (MDP) M*n*+e'ent De4e&o)'ent P%o+%*'( OR
A94*nt*+e( of De4e&o)'ent
1& Ma*ing them
)elf1starters
@ommitted
Moti$ated
Res!lt oriented
)ensiti$e to en$ironment
Bnderstand !se of po(er
2& @reating self a(areness
9& 0e$elop inspiring leadership styles
:& /nstill #est for e?cellence
<& +each them a"o!t effecti$e comm!nication
=& +o s!"ordinate their f!nctional loyalties to the interests of the organi#ation
Diffe%en-e 0et=een T%*inin+ *n9 De4e&o)'ent
T%*inin+ De4e&o)'ent
+raining is s*ills foc!sed 0e$elopment is creating learning a"ilities
+raining is pres!med to ha$e a formal
ed!cation
0e$elopment is not ed!cation dependent
+raining needs depend !pon lac* or
deficiency in s*ills
0e$elopment depends on personal dri$e
and am"ition
+rainings are generally need "ased 0e$elopment is $ol!ntary
+raining is a narro(er concept foc!sed
on %o" related s*ills
0e$elopment is a "roader concept
foc!sed on personality de$elopment
+raining may not incl!de de$elopment 0e$elopment incl!des training (here$er
necessary
+raining is aimed at impro$ing %o"
related efficiency and performance
0e$elopment aims at o$erall personal
effecti$eness incl!ding %o" efficiencies
W;*t *%e t;e T%*inin+ In)/t(A
)*ills
>d!cation
0e$elopment
>thics
6ro"lem )ol$ing )*ills
0ecision Ma*ing
8ttit!dinal @hanges
I')o%t*n-e of T%*inin+ , De4e&o)'ent
Helps remo$e performance deficiencies in employees
Creater sta"ility, fle?i"ility and capacity for gro(th in an organi#ation
8ccidents, scraps and damages to machinery can "e a$oided
)er$es as effecti$e so!rce of recr!itment
/t is an in$estment in HR (ith a promise of "etter ret!rns in f!t!re
Red!ces dissatisfaction, a"senteeism, complaints and t!rno$er of employees
!C
Nee9 of T%*inin+
In9i4i9/*& &e4e&
0iagnosis of present pro"lems and f!t!re challenges
/mpro$e indi$id!al performance or fi? !p performance deficiency
/mpro$e s*ills or *no(ledge or any other pro"lem
+o anticipate f!t!re s*ill1needs and prepare employee to handle more challenging tas*s
+o prepare for possi"le %o" transfers
G%o/) &e4e&
+o face any change in organi#ation strategy at gro!p le$els
Ahen ne( prod!cts and ser$ices are la!nched
+o a$oid scraps and accident rates
I9entifi-*tion of T%*inin+ Nee9( (Met;o9()
In9i4i9/*& T%*inin+ Nee9( I9entifi-*tion
1& 6erformance 8ppraisals
2& /nter$ie(s
9& I!estionnaires
:& 8ttit!de )!r$eys
<& +raining 6rogress 2eed"ac*
=& Aor* )ampling
4& Rating )cales
G%o/) 8e4e& T%*inin+ Nee9( I9entifi-*tion
1& -rgani#ational Coals and -"%ecti$es
2& 6ersonnel G )*ills /n$entories
9& -rgani#ational @limate /ndices
:& >fficiency /ndices
<& >?it /nter$ie(s
=& M3- G Aor* 6lanning )ystems
4& I!ality @ircles
8& @!stomer )atisfaction )!r$ey
9& 8nalysis of @!rrent and 8nticipated @hanges
1enefit( of T%*inin+ Nee9( I9entifi-*tion
1& +rainers can "e informed a"o!t the "roader needs in ad$ance
2& +rainers 6erception Caps can "e red!ced "et(een employees and their s!per$isors
9& +rainers can design co!rse inp!ts closer to the specific needs of the participants
:& 0iagnosis of ca!ses of performance deficiencies can "e done
Met;o9( of T%*inin+
On t;e 2o0 T%*inin+(# +hese methods are generally applied on the (or*place (hile
employees is act!ally (or*ing& 2ollo(ing are the on1the1%o" methods&
A94*nt*+e( of On$t;e$2o0 T%*inin+#
/t is directly in the conte?t of %o"
/t is often informal
/t is most effecti$e "eca!se it is learning "y e?perience
/t is least e?pensi$e
+rainees are highly moti$ated
/t is free from artificial classroom sit!ations
Di(*94*nt*+e( of On$t;e$2o0 T%*inin+#
<E
+rainer may not "e e?perienced eno!gh to train
/t is not systematically organi#ed
6oorly cond!cted programs may create safety ha#ards
On t;e 2o0 T%*inin+ Met;o9(
1. 2o0 Rot*tion# /n this method, !s!ally employees are p!t on different %o"s t!rn "y
t!rn (here they learn all sorts of %o"s of $ario!s departments& +he o"%ecti$e is to
gi$e a comprehensi$e a(areness a"o!t the %o"s of different departments&
8d$antage , employee gets to *no( ho( his o(n and other departments also
f!nction& /nterdepartmental coordination can "e impro$ed, instills team spirit&
0isad$antage , /t may "ecome too m!ch for an employee to learn& /t is not foc!sed
on employees o(n %o" responsi"ilities& >mployees "asic talents may remain !nder
!tili#ed&
2. 2o0 Co*-;in+# 8n e?perienced employee can gi$e a $er"al presentation to e?plain
the nitty1gritty.s of the %o"&
3. 2o0 In(t%/-tion# /t may consist an instr!ction or directions to perform a partic!lar
tas* or a f!nction& /t may "e in the form of orders or steps to perform a tas*&
4. A))%enti-e(;i)(# Cenerally fresh grad!ates are p!t !nder the e?perienced
employee to learn the f!nctions of %o"&
5. Inte%n(;i)( *n9 A((i(t*nt(;i)(# 8n intern or an assistants are recr!ited to
perform a specific time1"o!nd %o"s or pro%ects d!ring their ed!cation& /t may consist
a part of their ed!cational co!rses&
Off t;e 2o0 T%*inin+(# +hese are !sed a(ay from (or* places (hile employees are not
(or*ing li*e classroom trainings, seminars etc& 2ollo(ing are the off1the1%o" methods;
A94*nt*+e( of Off$t;e$2o0 T%*inin+#
+rainers are !s!ally e?perienced eno!gh to train
/t is systematically organi#ed
>fficiently created programs may add lot of $al!e
Di(*94*nt*+e( of Off$t;e$2o0 T%*inin+#
/t is not directly in the conte?t of %o"
/t is often formal
/t is not "ased on e?perience
/t is least e?pensi$e
+rainees may not "e highly moti$ated
/t is more artificial in nat!re
Off t;e 2o0 T%*inin+ Met;o9(
1. C&*((%oo' 8e-t/%e(# /t is a $er"al lect!re presentation "y an instr!ctor to a large
a!dience& 8d$antage , /t can "e !sed for large gro!ps& @ost per trainee is lo(&
0isad$antages , 5o( pop!larity& /t is not learning "y practice& /t is -ne1(ay
comm!nication& Ho a!thentic feed"ac* mechanism& 5i*ely to "oredom&
2. A/9io$Vi(/*&# /t can "e done !sing 2ilms, +ele$isions, Lideo, and 6resentations etc&
8d$antages , Aide range of realistic e?amples, !ality control possi"le,&
0isad$antages , -ne1(ay comm!nication, Ho feed"ac* mechanism& Ho fle?i"ility for
different a!dience&
3. Si'/&*tion# creating a real life sit!ation for decision1ma*ing and !nderstanding the
act!al %o" conditions gi$e it& 2ollo(ing are some of the sim!lation methods of
trainings
a. C*(e St/9ie(# /t is a (ritten description of an act!al sit!ation and trainer is
s!pposed to analy#e and gi$e his concl!sions in (riting& +he cases are
generally "ased on act!al organi#ational sit!ations& /t is an ideal method to
promote decision1ma*ing a"ilities (ithin the constraints of limited data&
<1
b. Ro&e P&*.(# Here trainees ass!me the part of the specific personalities in a
case st!dy and enact it in front of the a!dience& /t is more emotional
orientation and impro$es interpersonal relationships& 8ttit!dinal change is
another res!lt& +hese are generally !sed in M06&
c. Sen(iti4it. T%*inin+(E +his is more from the point of $ie( of "eha$ioral
assessment, !nder different circ!mstances ho( an indi$id!al (ill "eha$e
himself and to(ards others& +here is no preplanned agenda and it is instant&
8d$antages , increased a"ility to empathi#e, listening s*ills, openness,
tolerance, and conflict resol!tion s*ills& 0isad$antage , 6articipants may
resort to their old ha"its after the training&
4. P%o+%*''e9 In(t%/-tion(# 6ro$ided in the form of "loc*s either in "oo* or a
teaching machine !sing !estions and 2eed"ac*s (itho!t the inter$ention of trainer&
8d$antages , )elf paced, trainees can progress at their o(n speed, strong
moti$ation for repeat learning, material is str!ct!red and self1contained&
0isad$antages , )cope for learning is less; cost of "oo*s, man!als or machinery is
e?pensi$e&
5. Co')/te% Ai9e9 In(t%/-tion(# /t is e?tension of 6/ method, "y !sing comp!ters&
8d$antages , 6ro$ides acco!nta"ilities, modifia"le to technological inno$ations,
fle?i"le to time& 0isad$antages , High cost&
?B 8*0o%*to%. T%*inin+
1*%%ie%( to Effe-ti4e T%*inin+#
1& 5ac* of Management commitment
2& /nade!ate +raining "!dget
9& >d!cation degrees lac* s*ills
:& 5arge scale poaching of trained staff
<& Hon1coordination from (or*ers d!e to do(nsi#ing trends
=& >mployers and 3 )chools operating distantly
4& Bnions infl!ence
Ho= To M*:e T%*inin+ Effe-ti4eA
1& Management @ommitment
2& +raining ; 3!siness )trategies /ntegration
9& @omprehensi$e and )ystematic 8pproach
:& @ontin!o!s and -ngoing approach
<& 6romoting 5earning as 2!ndamental Lal!e
=& @reations of effecti$e training e$al!ation system
<
INDUCTION , ORIENATION
Definition 1# +lanned Introduction
/t is a 6lanned /ntrod!ction of employees to their %o"s, their co1(or*ers and the
organi#ation per se&'
O%ient*tion -on4e.( < t.)e( of info%'*tion#
1& 0aily Aor* Ro!tine
2& -rgani#ation 6rofile
9& /mportance of 7o"s to the organi#ation
:& 0etailed -rientation 6resentations
P/%)o(e of O%ient*tion
1& +o ma*e ne( employees feel at home in ne( en$ironment
2& +o remo$e their an?iety a"o!t ne( (or*place
9& +o remo$e their inade!acies a"o!t ne( peers
:& +o remo$e (orries a"o!t their %o" performance
<& +o pro$ide them %o" information, en$ironment
T.)e( of O%ient*tion P%o+%*'(
1& 2ormal or /nformal
2& /ndi$id!al or Cro!p
9& )erial or 0is%!ncti$e
P%e%eG/i(ite( of Effe-ti4e O%ient*tion P%o+%*'
1& 6repare for recei$ing ne( employee
2& 0etermine information ne( employee (ants to *no(
9& 0etermine ho( to present information
:& @ompletion of 6aper(or*
P%o0&e'( of O%ient*tion(
1& 3!sy or Bntrained s!per$isor
2& +oo m!ch information
9& -$erloaded (ith paper(or*
:& Ci$en menial tas*s and disco!rage interests
<& 0emanding tas*s (here fail!re chances are high
=& >mployee thro(n into action soon
4& Arong perceptions of employees
W;*t i( t;e 9iffe%en-e 0et=een in9/-tion *n9 o%ient*tionA
/nd!ction referred to formal training programs that an employee had to complete "efore
they co!ld start (or*
-rientation (as the informal information gi$ing that made the recr!it a(are of the comfort
iss!es 1 (here the facilities are, (hat time l!nch is and so forth&
<!
Ho= &on+ (;o/&9 t;e in9/-tion )%o-e(( t*:eA
/t starts (hen the %o" ad is (ritten, contin!es thro!gh the selection process and is not
complete !ntil the ne( team mem"er is comforta"le as a f!ll contri"!tor to the
organi#ationFs goals&
+he first ho!r on day one is a critical component 1 signing on, iss!ing *eys and pass(ords,
e?plaining no go #ones, emergency proced!res, meeting the people that yo! (ill interact
(ith all ha$e to "e done immediately& Bntil they are done the ne(comer is on the payroll,
"!t is not employed&
8fter that it is a matter of %!st in time training 1 e?panding the content as ne( d!ties are
!nderta*en&
We on&. e')&o. ne= )eo)&e one *t * ti'e $ ;o= -*n =e in9/-t t;e'A
+here are some iss!es, (hich cannot (ait 1 they $ary according to yo!r sit!ation& 6erhaps a
"!ddy system on the %o" may "e the "est (ay to deal (ith these& -ther s!"%ects may "e
incorporated (ith refresher training for c!rrent staff, or handled as participant in an o!tside
program& 6erhaps some can (ait !ntil there are gro!ps of people (ho ha$e started in the
last fe( months&
+his may ta*e some creati$e thin*ing, "!t the ans(er is !ite simple 1 !ntil the ne( people
are integrated then they are less !sef!l& +he math is often ama#ingly simple 1 not ta*ing
the time to train cons!mes more time than the training (o!ld&
W;*t &e4e&( of (t*ff nee9 in9/-tionA
>$ery"ody& +he @>- needs to *no( different things to the temporary concierge, "!t
e$eryone needs a planned program of ind!ction and orientation&
P8ACEMENT
6lacement is allocation of people to %o"s& /t is assignment or reassignment of an employee
to a ne( or different %o"&
MU8TI SII88ING
M!lti )*illing is +he /ntegrated )*ills 6rogram that has "een de$eloped to "!ild on the
e?isting s*ills of the c!rrent (or* force to red!ce red!ndancies and a$oid do(nsi#ing
sit!ations& +he o"%ecti$e of this program is to gain total integration of s*ills&
+he program is "ased aro!nd Kon1the1%o". ; Koff1the1%o". competence& +hat is the a"ility to
do the %o" on the shop floor (training to gain (or* e?perience) and Koff1the1%o". (training in
the classroom) to gain !nderpinning *no(ledge&
+he program re!ires the indi$id!al to demonstrate competence in a n!m"er of different
s*ills and this competence is meas!red and assessed on the %o"&
M!lti1s*illing of co!rse (or*s "est (ith more ad$anced s*illed (or*ers "eca!se their
indi$id!al s*ills le$els are de$eloped eno!gh (here they can fl!idly transition from one s*ill
to the ne?t (itho!t degradation of a s*ills performance& /f yo! are m!lti1s*illing and a
great percentage of yo!r (or*ers are ha$ing pro"lems e?ec!ting one of the s*ills effecti$ely
it is pro"a"ly a good signal yo! need to go "ac* to "asics (ith that s*ill and p!ll it o!t of
the m!lti1s*illing se!ences& 8nother ad$antage of m!lti1s*illing is the positi$e effect of
(hat is called Mconte?t!al learningM& @onte?t!al learning in$ol$es disco$ery and
<<
impro$ement from t(o s*ills, (hich donFt, on the s!rface, appear to ha$e a direct
relationship&
+he disad$antages of m!lti1s*illing incl!de the o"$io!s danger of mo$ing on to !ic*ly
to(ard ad$anced s*ills and com"inations (itho!t s!fficiently drilling "asic s*ills& Ahile
there is a great desire to learn !ic*ly / thin* this is one of the reason (e are seeing "etter
s*illed from some of the "est (or*ers& +he conse!ence is that (e "ecome Mpartially
s*illedM& +he greater the n!m"er of partial s*ills (e de$elop, the less chance (e e$er ha$e
of reaching o!r f!ll potential&
CHANGE MANAGEMENT
C;*n+e 4i($K$4i(
Recr!itment
6erformance 8ppraisals
Me*nin+ of C;*n+e#
8lterations in ,6eople, )tr!ct!re and +echnology
E6te%n*& "o%-e( of C;*n+e#
Mar*etplace
5a"or mar*ets
>conomic @hanges
+echnology
5a(s and Reg!lations
Inte%n*& "o%-e( of C;*n+e
@orporate )trategies
Aor*place
+echnology and >!ipments
>mployee 8ttit!des
C;*n+e A+ent(# (W;o -*n 0%in+ *0o/t -;*n+eA)
Managers
>?ternal @ons!ltants
)taff )pecialists
P%o-e(( of C;*n+e (8e=in( (te)()
Bnfree#ing
@hanging
Refree#ing
W;ite =*te% %*)i9( 'et*);o%
5ac* of )ta"ility
5ac* of 6redicta"ility
Lirt!al @haos
@onstant @hange
Re(i(t*n-e to C;*n+e
Bncertainty and 8m"ig!ity
6ersonal 5oss @oncerns
0is"elief in @hange "enefits
Te-;niG/e( of Re9/-in+ Re(i(t*n-e to C;*n+e
<>
>d!cation and @omm!nication
Hegotiation
Manip!lation and @o1optation
6articipation
2acilitation
@oercion
C;*n+e M*n*+e'ent
)tr!ct!ral @hanges +echnological @hanges 6eople @hanges
8!thority
@oordination
@entrali#ation
6rocesses
Methods
>!ipments
8ttit!des
>?pectations
3eha$iors
O%+*ni5*tion*& De4e&o)'ent Te-;niG/e(
)!r$ey 2eed"ac*
)ensiti$ity +raining
6rocess @ons!ltation
+eam 3!ilding
/nter1gro!p 0e$elopment
Con9ition( "*-i&it*tin+ C;*n+e
0ramatic @risis
5eadership @hange
Aea* @!lt!re
Po!ng and )mall -rgani#ation (ageing)
T;e Ro*9 to C;*n+e in C/&t/%e
8naly#e the c!lt!re
Heed for change
He( leadership
Reorgani#e
Restr!ct!re
He( stories and rit!als
@hange the %o" systems
TQM VF(B Reen+inee%in+
+IM (+otal I!ality Management) Re engineering
@ontin!o!s @hange
2i?ing and /mpro$ing
Mostly foc!sed on K8s1/s.
)ystems indispensa"le
3ottom to +op
Radical and -ne time @hange
Redesigning
Mostly foc!sed on K(hat can "eD.
+op to 3ottom
M*n*+in+ Do=n(i5e9 Wo%:fo%-e
-pen and honest comm!nication
8ssistance to them
Help for s!r$i$ors of the do(nsi#ed
St%e(( in Wo%:)&*-e
-pport!nities stress
0emands stress
@onstraints stress
Ho= to %e9/-e =o%:)&*-e (t%e((
>mployee selection
-rgani#ational comm!nication
6erformance 6lanning
<?
7o" redesign especially (hen processes change, %o"s merged, and relocation happens
>mployee co!nseling
+ime management programs
W;*t i( -%e*ti4it.A
@om"ining ne( ideas in !ni!e (ays or associating ideas in !n!s!al (ays
W;*t i( inno4*tionA
+!rning creati$e ideas into !sef!l prod!cts, ser$ices or methods of operations
! Set( of 4*%i*0&e (i'/&*te inno4*tion
)tr!ct!ral @hanges
@!lt!ral @hanges
H!man Reso!rces @hanges
C;*n+e Define9
M@hange is the (indo( thro!gh (hich the f!t!re enters yo!r life&M /tFs all aro!nd yo!, in
many types and shapes& Po! can "ring it a"o!t yo!rself or it can come in (ays
W;. C;*n+e M*n*+e'entA
Po! can "ring the change a"o!t yo!rself or it can come in (ays that gi$e yo! little choice
a"o!t its (hat, (hen, and ho(& 2ighting against change can slo( it do(n or di$ert it, "!t it
(onFt stop it ho(e$er& /f yo! (ish to s!cceed in this rapidly changing ne( (orld Myo! m!st
learn to loo* on change as a friend 1 one (ho presents yo! (ith an opport!nity for gro(th
and impro$ement&M
9
+he rate of change in todayFs (orld is constantly increasing& >$erything that e?ists is
getting old, (earing o!t and sho!ld "e replaced& MRe$ol!tionary technologies, consolidation,
(ell1f!nded ne( competition, !npredicta"le c!stomers, and a !ic*ening in the pace of
change h!rled !nfamiliar conditions at management&M
4
+r!e s!ccess and long1term prosperity in the ne( (orld depends on yo!r a"ility to adapt to
different and constantly changing conditions& +he strategic selection of the "est strategic
positioning in the playing field, or the 3!siness )pace, yo!r firm m!st ta*e is complicated
"y the fact that the characteristics of the 3!siness )pace change o$er time& +oday, the
(orld is a different place than it (as yesterday& M8t certain points, the difference "ecomes
material& )!ccessf!l firms recogni#e change& Lery s!ccessf!l ones anticipate it&M
8
E4o&/tion*%. (P&*nne9) C;*n+e 4e%(/( Re4o&/tion*%. A-tion
Ho( yo! change a "!siness !nit to adapt to shifting economy and mar*ets is a matter of
management style& >$ol!tionary change, that in$ol$es setting direction, allocating
responsi"ilities, and esta"lishing reasona"le timelines for achie$ing o"%ecti$es, is relati$ely
painless& Ho(e$er, it is rarely fast eno!gh or comprehensi$e eno!gh to mo$e ahead of the
c!r$e in an e$ol$ing (orld (here sta*es are high, and the response time is short& Ahen
faced (ith mar*et1dri$en !rgency, a"r!pt and sometimes disr!pti$e change, s!ch as
dramatic do(nsi#ing or reengineering, may "e re!ired to *eep the company competiti$e&
/n sit!ations (hen timing is critical to s!ccess, and companies m!st get more efficient and
prod!cti$e rapidly, re$ol!tionary change is demanded&
Ahen choosing "et(een e$ol!tionary change and re$ol!tionary action, a leader m!st
p!rs!e a "alanced and pragmatic approach& )(inging too far to re$ol!tionary e?treme may
create Man organi#ational c!lt!re that is so impatient, and so foc!sed on change, that it fails
to gi$e ne( initiati$es and ne( personnel time to ta*e root, sta"ili#e, and gro(& AhatFs
more, it creates a high1tension en$ironment that intimidates rather than n!rt!res people,
lea$ing them (ith little or no emotional in$estment in the company&M
:
<7
Re(i(t*n-e to C;*n+e
Most people donFt li*e change "eca!se they donFt li*e "eing changed& M/f yo! (ant to ma*e
enemies, try to change somethingM, ad$ised Aoodro( Ailson& Ahen see*ing to change an
organi#ation, itFs strategy or processes, leaders r!n into He(tonFs la( that a "ody at rest
tends to stay at rest& 8d$ocates for change are greeted (ith s!spicion, anger, resistance,
and e$en sa"otage&
:
MHot in$ented hereM syndrome also *eeps many so!nd ideas from
gaining the o"%ecti$e assessment they deser$e&&&More
To9*.L( Wo%&9 Re*&itie(
+he magnit!de of todayFs en$ironmental, competiti$e, and glo"al mar*et change is
!nprecedented& /tFs a $ery interesting and e?citing (orld, "!t itFs also $olatile and chaoticE
Vo&*ti&it. descri"es the economyFs rate of changeE e?tremely fast, (ith e?plosi$e
!ps!rges and s!dden do(nt!rns&
C;*o( descri"es the direction of the economyFs changesE (eFre not s!re e?actly
(here (eFre headed, "!t (e are s(inging "et(een the $ario!s alternati$es at a $ery
high speed&
=
+o cope (ith an !npredicta"le (orld yo! m!st "!ild an enormo!s amo!nt of fle?i"ility into
yo!r organi#ation& Ahile yo! cannot predict the f!t!re, yo! can get a handle on trends,
(hich is a (ay to ta*e ad$antage of change and con$ert ris*s into opport!nities&
C%e*tin+ C;*n+e fo% I')%o4e'ent *n9 Co')etiti4e A94*nt*+e
@hange creates opport!nities, "!t only for those (ho recogni#e and sei#e it& M)eeing is the
first step, sei#ing the second, and contin!o!sly inno$ating is the third&M
<
/nno$ation
redefines gro(th opport!nities& 8s c!rrent prod!cts are "ecoming o"solete faster than e$er,
in order to s!r$i$e and prosper, organi#ations contin!ally need to impro$e, inno$ate and
modify their prod!cts and ser$ices& +he )ilicon Lalley slogan M>at l!nch and yo! are l!nchM
is more than a reflection of increasingly intense (or* ethic& Riding the (a$e of change is
"ecoming the most important part of the "!siness& Ahile the economy is shifting and
inno$ation is rampant, Mdoing it the same (ayM is a recipe for corporate e?tinction&
1
)!ccessf!l change efforts are those (here the choices "oth are internally consistent and fit
*ey e?ternal and sit!ational $aria"les& MPo! ha$e to find s!"tle (ays to introd!ce change,
ne( concepts, and gi$e feed"ac* to people so that they can accept and gro( (ith it&M
:
Anti-i)*tin+ C;*n+e
+here is "ig difference "et(een anticipating and g!essing& 8nticipation means e?pecting,
"eing a(are of something in ad$ance, to regard it as possi"le& +he a"ility to anticipate is
one of the *ey ingredients of efficient speed and change management& M3eing a"le to
anticipate that (hich is li*ely to occ!r in the ne?t fe( months and the ne?t fe( years is
eno!gh to gi$e yo! an edge o$er 99O of the pop!lation (ho simply go along (ith (hate$er
happens&M
4
Ho( can yo! see the f!t!reD 8ct!ally, anticipation is nat!ral 1 e$eryone does it e$ery day&
Bnfort!nately, most people limit e?ercising their anticipatory s*ills to daily ro!tine matters&
8ll yo! really need to start applying these s*ills for yo!r "!siness is a small head
start&&&More
St*%tin+ =it; Yo/%(e&f
+he "est place to start change is (ith yo!rself& /f (hate$er yo! do doesnFt (or*, yo! m!st
"e fle?i"le 1 yo! m!st change yo!r action plan if the c!rrent one does not prod!ce the
re!ired res!lts& /f yo! (ant other people to change, yo! m!st "e prepared to ma*e the
first step yo!rself& /f yo! cannot change yo!r en$ironment, yo! sho!ld change yo!r
attit!de& +o achie$e effecti$e personal change, consider practicing the H56 +echnology of
8chie$ement that (as specially de$eloped to disco$er ho( people can e?cel, and most
partic!larly (hen managing change 1 ho( to create the Fdifference that ma*es the
differenceF&&&More
<@
8e*9in+ C;*n+e
+he old (ays of management no longer (or* and (ill ne$er (or* again& )!ccessf!l change
re!ires leadership& Ahen change fails to occ!r as planned, the ca!se if often to "e fo!nd
at a deeper le$el, rooted in the inappropriate "eha$ior, "eliefs, attit!des, and ass!mptions
of (o!ld1"e leaders&
=
5eadership is all a"o!t the process of changeE ho( to stay ahead of it,
master it, "enefit from the opport!nities it "rings& +he "est leaders stri*e first "y ta*ing the
offensi$e against economic cycles, mar*et trends, and competitors& +hey disco$er the most
effecti$e (ays for achie$ing significant change 1 Ma change that identifies the realities of the
"!siness en$ironment and reorders them so that a ne( force is a"le to le$erage, rather
than resist, those realities in order to achie$e a competiti$e ad$antage&M
:
+he follo(ing system (ill help yo! to !nleash the po(er of yo!r organi#ation and reshape it
into a more competiti$e enterpriseE
0e$elop a $ision& +o create a seamless "ridge from the $ision to action, start (ith
yo!r top management team 1 they sho!ld !nderstand and em"race yo!r $ision&
8lign all yo!r people against the endgame& /n$ite their opinion regarding critical
iss!es s!ch as the direction yo! sho!ld "e headed, the changes yo! ha$e to ma*e,
and the reso!rces yo! ha$e to ac!ire&
Bsing the employee feed"ac*, de$elop a strategic plan& )tay laser1foc!sed on the
methods that (ill dri$e yo!r "!siness !nit to(ards its stated o"%ecti$es&
3!ild a di$erse leadership gro!p representing all the *ey constit!encies of yo!r
organi#ation& +hey (ill share responsi"ility for plan management&
)hare detail information a"o!t the company and the change progress 1 people ha$e
to !nderstand (here yo! are and (here yo! are going in order to contri"!te
effecti$ely to yo!r mission&
M*n*+in+ O%+*ni5*tion*& C;*n+e
)!ccess in "!siness doesnFt come from feeling comforta"le& /n todayFs technology1dri$en
(orld, "!siness life cycles ha$e accelerated e?ponentially& +he challenge is to *eep a step
ahead of changing mar*et conditions, ne( technologies and h!man reso!rces iss!es&
+he (heel of "!siness e$ol!tion is a frame(or* and set of tools, (hich ena"les yo! to
manage the comple? process of organi#ational change and transformation more effecti$ely&
+he se!ence of the eight segments 1 "!siness en$ironment, "!siness ecosystem, "!siness
design, leadership style, organi#ational $al!es, management process, *no(ledge
management systems, and performance meas!res 1 reflects the learning cycle that occ!rs
(hen o!tside1in or "ottom1!p learning ta*es place&
1e;*4io%*& C;*n+e
+he challenge and the shape of an organi#ationFs "eha$ioral change program depend on the
corporate c!lt!re and the targeted "eha$iors that need to "e changed& Po!r change
program needs to "e e?plicitly "!ilt aro!nd these challenges& MLery often, these programs
in$ol$e the creation of incenti$es (hich elegantly reinforce the desired "eha$ior (and
therein reinforce the change loop in the learning dynamic)&M
8
&&&
Moti4*tin+ E')&o.ee( to E'0%*-e C;*n+e
Po! ha$e a choice of instr!ments to moti$ate yo!r people to em"race change&
6erformance1incenti$e le$ers are especially !sef!l in dri$ing those (ho lac* direction or
initiati$e& Po! may also enco!rage employee feed"ac* on (here and ho( the company can
ta*e correcti$e action and re(ard employees for their contri"!tion& /n any case, Monce yo!
open the gates and enco!rage employees to ser$e as agents of change, yo! m!st
demonstrate that their inp!t (ill ha$e a real1(orld impact on the (ay yo!r company does
"!siness&M
:
-n the other side, yo! ha$e to "e rather aggressi$e (hen dealing (ith people (ho $ie(
change as a threat and create road"loc*s that stall progress& 8nyone (ho thin*s that itFs
harmless to ma*e e?ceptions for a fe( people and shift reso!rces to accommodate poor
<C
performers is missing an important point& M/tFs not a fe( people (ho are at sta*e, itFs the
corporate c!lt!reM, says Miles Creer, of )a$annah >lectric& M3y permitting those (ho resist
or retaliate against change to remain in the company, yo! "roadcast a message that
s!ggests s!pporting the companyFs mission statement is optional& >$en (orse, yo! permit
the least1committed employees to taint and infl!ence the attit!de and performance of their
peers&M
Mo4in+ =it; S)ee9
/n the ne( economy (here e$erything is mo$ing faster and itFs only going to get faster, the
ne( mantra is, M0o it more (ith less and do it faster&M
1
+o "e a"le to mo$e (ith speed,
companies need to esta"lish a change1friendly en$ironment and de$elop fo!r ma%or
competenciesE fast thin*ing, fast decision ma*ing, fast acting, and s!staining speed&
M*:in+ Q/i-: De-i(ion( t;%o/+; E(t*0&i(;in+ G/i9in+ P%in-i)&e(
2ast companies that ha$e demonstrated the a"ility to s!stain s!rge and $elocity all ha$e
esta"lished sets of g!iding principles to help them ma*e !ic* decisions& 8"andoning
theoretical and politically correct F$al!esF and "!rea!cratic proced!res in fa$or of a
practical, do(n1to1earth list of g!iding principles (ill help yo!r company ma*e the decision1
ma*ing process m!ch faster& -nly one !estion (ill need to "e as*ed of any proposed
co!rse of actionE 0oes it fit o!r g!iding principlesD
>E
PER"ORMANCE APPRAISA8S
Definition 1# Systematic -valuation
/t is a systematic e$al!ation of an indi$id!al (ith respect to performance on the %o" and
indi$id!al.s potential for de$elopment&'
Definition # 6ormal System, "easons and )easures of future performance
/t is formal, str!ct!red system of meas!ring, e$al!ating %o" related "eha$iors and
o!tcomes to disco$er reasons of performance and ho( to perform effecti$ely in f!t!re so
that employee, organi#ation and society all "enefits&'
Me*nin+ of Pe%fo%'*n-e A))%*i(*&(
6erformance 8ppraisals is the assessment of indi$id!al.s performance in a systematic (ay&
/t is a de$elopmental tool !sed for all ro!nd de$elopment of the employee and the
organi#ation& +he performance is meas!red against s!ch factors as %o" *no(ledge, !ality
and !antity of o!tp!t, initiati$e, leadership a"ilities, s!per$ision, dependa"ility, co1
operation, %!dgment, $ersatility and health& 8ssessment sho!ld "e confined to past as (ell
as potential performance also& +he second definition is more foc!sed on "eha$iors as a part
of assessment "eca!se "eha$iors do affect %o" res!lts&
Pe%fo%'*n-e A))%*i(*&( *n9 2o0 An*&.(i( Re&*tion(;i)
7o" 8nalysis 6erformance )tandards 6erformance 8ppraisals
0escri"e the (or* and
personnel re!irement of
a partic!lar %o"&
+ranslate %o" re!irements
into le$els of accepta"le or
!naccepta"le performance
0escri"e the %o" rele$ant
strengths and (ea*nesses
of each indi$id!al&
O03e-ti4e( of Pe%fo%'*n-e A))%*i(*&(
U(e of Pe%fo%'*n-e A))%*i(*&(
1& 6romotions
2& @onfirmations
9& +raining and 0e$elopment
:& @ompensation re$ie(s
<& @ompetency "!ilding
=& /mpro$e comm!nication
4& >$al!ation of HR 6rograms
8& 2eed"ac* ; Crie$ances
< Go*&( of Pe%fo%'*n-e A))%*i(*&(
Ceneral Coals )pecific Coals
0e$elopmental Bse /ndi$id!al needs
6erformance feed"ac*
+ransfers and 6lacements
)trengths and 0e$elopment needs
8dministrati$e 0ecisions G Bses )alary
>1
6romotion
Retention G +ermination
Recognition
5ay offs
6oor 6erformers identification
-rgani#ational Maintenance HR 6lanning
+raining Heeds
-rgani#ational Coal achie$ements
Coal /dentification
HR )ystems >$al!ation
Reinforcement of organi#ational needs
0oc!mentation Lalidation Research
2or HR 0ecisions
5egal Re!irements
Pe%fo%'*n-e A))%*i(*& P%o-e((
1& -"%ecti$es definition of appraisal
2& 7o" e?pectations esta"lishment
9& 0esign an appraisal program
:& 8ppraise the performance
<& 6erformance /nter$ie(s
=& Bse data for appropriate p!rposes
4& /dentify opport!nities $aria"les
8& Bsing social processes, physical processes, h!man and comp!ter assistance
Diffe%en-e 0et=een T%*9ition*& *n9 Mo9e%n (S.(te'() *))%o*-; to A))%*i(*&(
#ategories %raditional Appraisals )odern, Systems
Appraisals
C!iding Lal!es /ndi$id!alistic, @ontrol
oriented, 0oc!mentary
)ystematic,
0e$elopmental, 6ro"lem
sol$ing
5eadership )tyles 0irectional, >$al!ati$e 2acilitati$e, @oaching
2re!ency -ccasional 2re!ent
2ormalities High 5o(
Re(ards /ndi$id!alistic Cro!ped, -rgani#ational
TECHNIQUES F METHODS O" PER"ORMANCE APPRAISA8S
H!mero!s methods ha$e "een de$ised to meas!re the !antity and !ality of performance
appraisals& >ach of the methods is effecti$e for some p!rposes for some organi#ations only&
Hone sho!ld "e dismissed or accepted as appropriate e?cept as they relate to the partic!lar
needs of the organi#ation or an employee&
3roadly all methods of appraisals can "e di$ided into t(o different categories&
6ast -riented Methods
2!t!re -riented Methods
P*(t O%iente9 Met;o9(
1. R*tin+ S-*&e(# Rating scales consists of se$eral n!merical scales representing %o"
related performance criterions s!ch as dependa"ility, initiati$e, o!tp!t, attendance,
attit!de etc& >ach scales ranges from e?cellent to poor& +he total n!merical scores are
comp!ted and final concl!sions are deri$ed& 8d$antages , 8dapta"ility, easy to !se, lo(
>
cost, e$ery type of %o" can "e e$al!ated, large n!m"er of employees co$ered, no formal
training re!ired& 0isad$antages , Rater.s "iases
2. C;e-:&i(t# Bnder this method, chec*list of statements of traits of employee in the form
of Pes or Ho "ased !estions is prepared& Here the rater only does the reporting or
chec*ing and HR department does the act!al e$al!ation& 8d$antages , economy, ease
of administration, limited training re!ired, standardi#ation& 0isad$antages , Raters
"iases, !se of improper (eighs "y HR, does not allo( rater to gi$e relati$e ratings
3. "o%-e9 C;oi-e Met;o9# +he series of statements arranged in the "loc*s of t(o or
more are gi$en and the rater indicates (hich statement is tr!e or false& +he rater is
forced to ma*e a choice& HR department does act!al assessment& 8d$antages ,
8"sence of personal "iases "eca!se of forced choice& 0isad$antages , )tatements may
"e (rongly framed&
4. "o%-e9 Di(t%i0/tion Met;o9# here employees are cl!stered aro!nd a high point on a
rating scale& Rater is compelled to distri"!te the employees on all points on the scale& /t
is ass!med that the performance is conformed to normal distri"!tion& 8d$antages ,
>liminates 0isad$antages , 8ss!mption of normal distri"!tion, !nrealistic, errors of
central tendency&
5. C%iti-*& In-i9ent( Met;o9# +he approach is foc!sed on certain critical "eha$iors of
employee that ma*es all the difference in the performance& )!per$isors as and (hen
they occ!r record s!ch incidents& 8d$antages , >$al!ations are "ased on act!al %o"
"eha$iors, ratings are s!pported "y descriptions, feed"ac* is easy, red!ces recency
"iases, chances of s!"ordinate impro$ement are high& 0isad$antages , Hegati$e
incidents can "e prioriti#ed, forgetting incidents, o$erly close s!per$ision; feed"ac* may
"e too m!ch and may appear to "e p!nishment&
6. 1e;*4io%*&&. An-;o%e9 R*tin+ S-*&e(# statements of effecti$e and ineffecti$e
"eha$iors determine the points& +hey are said to "e "eha$iorally anchored& +he rater is
s!pposed to say, (hich "eha$ior descri"es the employee performance& 8d$antages ,
helps o$ercome rating errors& 0isad$antages , )!ffers from distortions inherent in most
rating techni!es&
7. "ie&9 Re4ie= Met;o9# +his is an appraisal done "y someone o!tside employees. o(n
department !s!ally from corporate or HR department& 8d$antages , Bsef!l for
managerial le$el promotions, (hen compara"le information is needed, 0isad$antages ,
-!tsider is generally not familiar (ith employees (or* en$ironment, -"ser$ation of
act!al "eha$iors not possi"le&
8. Pe%fo%'*n-e Te(t( , O0(e%4*tion(# +his is "ased on the test of *no(ledge or s*ills&
+he tests may "e (ritten or an act!al presentation of s*ills& +ests m!st "e relia"le and
$alidated to "e !sef!l& 8d$antage , +ests may "e apt to meas!re potential more than
act!al performance& 0isad$antages , +ests may s!ffer if costs of test de$elopment or
administration are high&
9. Confi9enti*& Re-o%9(# Mostly !sed "y go$ernment departments, ho(e$er its
application in ind!stry is not r!led o!t& Here the report is gi$en in the form of 8nn!al
@onfidentiality Report (8@R) and may record ratings (ith respect to follo(ing items;
attendance, self e?pression, team (or*, leadership, initiati$e, technical a"ility,
reasoning a"ility, originality and reso!rcef!lness etc& +he system is highly secreti$e and
confidential& 2eed"ac* to the assessee is gi$en only in case of an ad$erse entry&
0isad$antage is that it is highly s!"%ecti$e and ratings can "e manip!lated "eca!se the
e$al!ations are lin*ed to HR actions li*e promotions etc&
>!
10. E((*. Met;o9# /n this method the rater (rites do(n the employee description in detail
(ithin a n!m"er of "road categories li*e, o$erall impression of performance,
promotea"ility of employee, e?isting capa"ilities and !alifications of performing %o"s,
strengths and (ea*nesses and training needs of the employee& 8d$antage , /t is
e?tremely !sef!l in filing information gaps a"o!t the employees that often occ!r in a
"etter1str!ct!red chec*list& 0isad$antages , /t its highly dependent !pon the (riting
s*ills of rater and most of them are not good (riters& +hey may get conf!sed s!ccess
depends on the memory po(er of raters&
11. Co(t A--o/ntin+ Met;o9# Here performance is e$al!ated from the monetary ret!rns
yields to his or her organi#ation& @ost to *eep employee, and "enefit the organi#ation
deri$es is ascertained& Hence it is more dependent !pon cost and "enefit analysis&
12. Co')*%*ti4e E4*&/*tion Met;o9 (R*n:in+ , P*i%e9 Co')*%i(on()# +hese are
collection of different methods that compare performance (ith that of other co1(or*ers&
+he !s!al techni!es !sed may "e ran*ing methods and paired comparison method&
Ran+ing Met*ods: )!perior ran*s his (or*er "ased on merit, from "est to
(orst& Ho(e$er ho( "est and (hy "est are not ela"orated in this method& /t is
easy to administer and e?planation&
&aired )omparison Met*ods: /n this method each employee is rated (ith
another employee in the form of pairs& +he n!m"er of comparisons may "e
calc!lated (ith the help of a form!la as !nder&
H ? (H11) G 2
"/t/%e O%iente9 Met;o9(
1. M*n*+e'ent 1. O03e-ti4e(# /t means management "y o"%ecti$es and the
performance is rated against the achie$ement of o"%ecti$es stated "y the management&
M3- process goes as !nder&
>sta"lish goals and desired o!tcomes for each s!"ordinate
)etting performance standards
@omparison of act!al goals (ith goals attained "y the employee
>sta"lish ne( goals and ne( strategies for goals not achie$ed in pre$io!s year&
8d$antage , /t is more !sef!l for managerial positions&
0isad$antages , Hot applica"le to all %o"s, allocation of merit pay may res!lt in setting
short1term goals rather than important and long1term goals etc&
2. P(.-;o&o+i-*& A))%*i(*&(# +hese appraisals are more directed to assess employees
potential for f!t!re performance rather than the past one& /t is done in the form of in1
depth inter$ie(s, psychological tests, and disc!ssion (ith s!per$isors and re$ie( of
other e$al!ations& /t is more foc!sed on employees emotional, intellect!al, and
moti$ational and other personal characteristics affecting his performance& +his approach
is slo( and costly and may "e !sef!l for "right yo!ng mem"ers (ho may ha$e
considera"le potential& Ho(e$er !ality of these appraisals largely depend !pon the
s*ills of psychologists (ho perform the e$al!ation&
3. A((e(('ent Cente%(# +his techni!e (as first de$eloped in B)8 and BQ in 19:9& 8n
assessment center is a central location (here managers may come together to ha$e
their participation in %o" related e?ercises e$al!ated "y trained o"ser$ers& /t is more
foc!sed on o"ser$ation of "eha$iors across a series of select e?ercises or (or* samples&
8ssessees are re!ested to participate in in1"as*et e?ercises, (or* gro!ps, comp!ter
sim!lations, role playing and other similar acti$ities (hich re!ire same attri"!tes for
s!ccessf!l performance in act!al %o"& +he characteristics assessed in assessment center
can "e asserti$eness, pers!asi$e a"ility, comm!nicating a"ility, planning and
organi#ational a"ility, self confidence, resistance to stress, energy le$el, decision
ma*ing, sensiti$ity to feelings, administrati$e a"ility, creati$ity and mental alertness
><
etc& 0isad$antages , @osts of employees tra$eling and lodging, psychologists, ratings
strongly infl!enced "y assessee.s inter1personal s*ills& )olid performers may feel
s!ffocated in sim!lated sit!ations& +hose (ho are not selected for this also may get
affected&
A94*nt*+e( , (ell1cond!cted assessment center can achie$e "etter forecasts of f!t!re
performance and progress than other methods of appraisals& 8lso relia"ility, content $alidity
and predicti$e a"ility are said to "e high in assessment centers& +he tests also ma*e s!re
that the (rong people are not hired or promoted& 2inally it clearly defines the criteria for
selection and promotion&
4. !?E$De+%ee "ee90*-:# /t is a techni!e (hich is systematic collection of performance
data on an indi$id!al gro!p, deri$ed from a n!m"er of sta*eholders li*e immediate
s!per$isors, team mem"ers, c!stomers, peers and self& /n fact anyone (ho has !sef!l
information on ho( an employee does a %o" may "e one of the appraisers& +his
techni!e is highly !sef!l in terms of "roader perspecti$e, greater self1de$elopment and
m!lti1so!rce feed"ac* is !sef!l& 9=01degree appraisals are !sef!l to meas!re inter1
personal s*ills, c!stomer satisfaction and team "!ilding s*ills& Ho(e$er on the negati$e
side, recei$ing feed"ac* from m!ltiple so!rces can "e intimidating, threatening etc&
M!ltiple raters may "e less adept at pro$iding "alanced and o"%ecti$e feed"ac*&
Et;i-( of Pe%fo%'*n-e A))%*i(*&( F 8e+*&&. 9efen(i0&e Pe%fo%'*n-e A))%*i(*&(
Et;i-( of P%o-e9/%e(
1& 2ormal )tandardi#ed 6erformance 8ppraisal )ystems
2& Bniform to all employees, no illegal differentiations "ased on cast, religion etc&
9& )tandards formally comm!nicated to all employees
:& 2reedom to re$ie( performance appraisal res!lts
<& 2ormal appeal process a"o!t ratings and %!dgments
=& Aritten instr!ctions and training to raters
4& 8ll personal decision ma*ers sho!ld "e a(are of anti1discrimination la(s&
Et;i-( of Content(
1& @ontent "ased on %o" analysis
2& +raits "ased appraisals sho!ld "e a$oided
9& -"%ecti$ely $erifia"le data sho!ld "e !sed
:& @onstraints on performance "eyond control sho!ld "e pre$ented
<& )pecific %o" related dimensions to "e !sed rather than single or glo"al dimensions&
=& 0imensions m!st "e assigned (eight to reflect relati$e importance in performance
score
Et;i-( of Do-/'ent*tion of Re(/&t(
1& 8 thoro!ghly (ritten record of e$idence leading to termination sho!ld "e maintained
2& Aritten doc!mentation of e?treme ratings sho!ld "e maintained
9& 0oc!mentation sho!ld "e consistent among the raters&
Et;i-( of R*te%(
1& +he raters sho!ld "e trained in ho( to !se an appraisal system
2& +he rater m!st ha$e opport!nity to o"ser$e ratees first hand and re$ie( important
ratee performance prod!cts&
9& Bse of more than one rater is desira"le to red!ce "iases&
O%+*ni5*tion*& S/))o%t "*-to%( fo% Pe%fo%'*n-e A))%*i(*& S.(te'(
>>
6erformance appraisal ser$es many organi#ational o"%ecti$es and goals& 3esides
enco!raging high le$el of performance, the e$al!ation system is !sef!l in identifying
employees (ith potential, re(arding them e!ita"ly, and determining employee needs for
de$elopment& 8ll these acti$ities are instr!mental in achie$ing corporate plans and long1
term gro(th, typical appraisal system in most organi#ations ha$e "een foc!sed on short1
term goals only&
2rom the strategic management point of $ie(s, organi#ations can "e gro!ped !nder 9
different categories as defenders, prospectors and analy#ers&
Defen9e%(# +hey ha$e narro( and sta"le prod!ct mar*et domain& +hey don.t need to
ma*e any ad%!stment in technology, str!ct!re or methods of operations etc& +hey de$ote
entire attention on impro$ing e?isting operations& 3eca!se of emphasis on s*ill "!ilding
s!ccessf!l defenders !se appraisals as means for identifying training needs& /t is more
"eha$ior oriented&
P%o()e-to%(# +hey contin!o!sly search for ne( prod!cts and opport!nities& +hey
e?periment reg!larly to ne( and emerging trends& +hey more foc!s on s*ills identification
and ac!isition of h!man reso!rces from e?ternal so!rces prospectors often !se appraisals
for identifying staffing needs& +he foc!s is on res!lts&
An*&.5e%(# +hey operate in t(o type of prod!ct domain mar*ets& -ne is sta"le and other is
changing& +hey (atch their competitors closely and rapidly adopt the ideas that are
promising& +hey !se cost effecti$e technologies for sta"le prod!cts and matri? technologies
for ne( prod!cts& 8naly#ers tend to emphasi#e on s*ills "!ilding and s*ills ac!isitions and
employ e?tensi$e training programs& Hence they !se appraisal more for training and
staffing p!rposes&
Ho(e$er performance appraisal systems has strategic importance in three different (ays&
"ee90*-: Me-;*ni('# 6erformance e$al!ation is the central mechanism that not only
pro$ides feed"ac* to indi$id!als "!t also aids in the assessment of the progress of
organi#ation as a (hole& Aitho!t appraisals managers of any firm can only g!ess as to
(hether or not employees are (or*ing to(ards reali#ation of the organi#ation goals&
Con(i(ten-. 0et=een (t%*te+. *n9 3o0 0e;*4io%# 6erformance appraisal not only is a
means of *no(ing if the employee "eha$ior is consistent (ith the o$erall strategies foc!s
"!t also a (ay of "ringing to the fore any negati$e conse!ence of the strategy , "eha$ior
fit& +h!s the performance appraisal system is an important mechanism to elicit feed"ac* on
the consistency of the strategy , "eha$ior lin*&
Con(i(ten-. 0et=een V*&/e( *n9 2o0 1e;*4io% &in:# 6erformance e$al!ation is a
mechanism to reinforce $al!es and c!lt!re of the organi#ation& 8nother importance is to
align appraisal (ith organi#ational c!lt!re&
+h!s the p!rpose of performance e$al!ation is to ma*e s!re that employee.s goals,
employees "eha$ior and feed"ac* of information a"o!t performance are all lin*ed to the
corporate strategy&
E((enti*&( of * Goo9 Pe%fo%'*n-e A))%*i(*& S.(te'#
1& )tandardi#ed 6erformance 8ppraisal )ystem
2& Bniformity of appraisals
9& 0efined performance standards
:& +rained Raters
<& Bse of rele$ant rating tools or methods
=& )ho!ld "e "ased on %o" analysis
4& Bse of o"%ecti$ely $erifia"le data
8& 8$oid rating pro"lems li*e halo effect, central tendency, leniency, se$erity etc&
9& @onsistent 0oc!mentations maintained
10& Ho room for discrimination "ased on cast, creed, race, religion, region etc&
>?
P%o0&e'( of R*tin+#
1& 5eniency ; )e$erity
2& @entral +endency
9& Halo >rror
:& Rater >ffect
<& 6rimacy ; Recency >ffect
=& 6ercept!al )ets
4& 6erformance 0imensions -rder
8& )pillo$er >ffects
9& )tat!s >ffect
INCENTIVES 1ASED COMPENSATION
/ncenti$es are monetary "enefits paid to (or*men in recognition of their o!tstanding
performance& +hey are defined as $aria"le re(ards granted according to $ariations in the
achie$ement of specific res!lts&
A94*nt*+e( of In-enti4e 0*(e9 -o')en(*tion(
1& /ncenti$es are important for ind!cement and moti$ation of (or*ers for higher
efficiency and greater o!tp!t&
2& >mployee earnings go !p
9& >nhanced standard of li$ings of employees
:& Red!ction in total !nit cost of prod!ction,
<& 6rod!cti$ity increases&
=& 6rod!ction capacity is also li*ely to increase
4& Red!ced s!per$ision
Di(*94*nt*+e( of In-enti4e 0*(e9 -o')en(*tion
1& +endency of !ality of prod!cts deteriorated d!e to increased o!tp!t and lo( cost
2& >mployees may oppose introd!ction of ne( machines
9& Aor*ers demand for minim!m (age limit may go !p d!e to high incenti$e earnings
:& )ometimes employees may disregard sec!rity reg!lations d!e to payment "y res!lts
approach adopted for higher incenti$e fig!res
<& -$er(or*ing may affect employee health
=& >mployee %ealo!sies (ith respect to high and lo( performers
>7
HUMAN RESOURCE AUDIT
N*t/%e of HR A/9it
HR 8!dit is a tool for e$al!ating the personnel acti$ities of an organi#ation& +he a!dit may
incl!de one di$ision or entire company& /t gi$es feed"ac* a"o!t HR f!nctions to operating
managers and HR specialists& /t also sho(s ho( (ell managers are meeting HR d!ties&
/n short HR a!dit is an o$erall control chec* on HR acti$ities in a di$ision or a company and
e$al!ation of ho( these acti$ities s!pport organi#ation.s strategy&
1*(i( of HR A/9it
(Pe%(onne& Re(e*%-;)
1& Aage )!r$eys
2& Recr!itment )o!rces effecti$eness
9& +raining efforts effecti$eness
:& )!per$isor.s effecti$eness
<& /nd!strial settlements
=& 7o" 8nalysis
4& 7o" )atisfaction )!r$ey
8& >mployee needs s!r$ey
9& 8ttit!de )!r$eys
10& High accident fre!ency s!r$eys
1enefit( of HR A/9it
1& /dentification of contri"!tions of HR department
2& /mpro$ement of professional image of HR department
9& >nco!ragement of greater responsi"ility and professionalism among HR mem"ers
:& @larification of HR d!ties and responsi"ilities
<& )tim!lation of !niformity of HR policies and practices
=& 2inding critical personnel pro"lems
4& >ns!ring timely compliance (ith legal re!irements
8& Red!ction of HR costs thro!gh more effecti$e personnel proced!res
9& @reation of increased acceptance of changes in HR department
10& 8 thoro!gh re$ie( of HR information systems
S-o)e *n9 T.)e( of HR A/9it
HR 8!dit m!st co$er the acti$ities of the department and e?tend "eyond "eca!se the
people pro"lems are not confined to HR department alone& 3ased on this HR a!dit can "e
spread across follo(ing fo!r different categories&
H!man Reso!rce 2!nction 8!dit
>@
Managerial @ompliance 8!dit
H!man Reso!rce @limate 8!dit
>mployee +!rno$er
8"senteeism
8ccidents
8ttit!de )!r$eys
HR 1 @orporate )trategy 8!dit
A))%o*-;e( to HR A/9it
1& @omparati$e 8pproach (3enchmar*ing (ith another company)
2& -!tside 8!thority 8pproach (-!tside cons!ltants. standards)
9& )tatistical 8pproach ()tatistical meas!res and tools)
:& @ompliance 8pproach (5egal and company policies)
<& Management 3y -"%ecti$es 8pproach (Coals ; -"%ecti$es "ased)
>C
MOTIVATION THEORIES
6erformance is a f!nction of a"ility and moti$ation& 6 N f (8 ? M)
Definition 1# #hoices among voluntary activities
8 process go$erning choices made "y persons or lo(er organisms among alternati$e forms
of $ol!ntary acti$ity
Definition # Arouse enthusiasm to pursue
8 res!lt of internal and e?ternal processes to the indi$id!al that aro!se enth!siasm and
persistence to p!rs!e a certain co!rse of action
Definition !# Need that activates behavior
8 process that starts (ith a physiological deficiency or need that acti$ates "eha$ior or a
dri$e that is aimed at a goal or an incenti$e&
Me*nin+ of Moti4*tion
Moti$ation is a set of forces that ca!se people to "eha$e in certain (ays&
Moti4*tion P%o-e(( (? Ste)()
1& /ndi$id!al Heeds
2& )earch for (ays to satisfy needs
9& Coal ; -"%ecti$es directed
:& /ncreased performance
<& Recei$ing re(ards or p!nishment
=& Reassessment of needs
C%iti-*&it. of Moti4*tion to M*n*+e%(
I')o%t*n-e of Moti4*tion
Moti$ation helps employees find ne( (ays of doing a %o"
Moti$ation ma*es employees !ality conscio!s
Moti$ation increases prod!cti$ity $ery high
Moti$ation stim!lates "oth participation and prod!ction at (or*
Moti$ation comprehends %o"s related "eha$iors
Moti$ation increases attention to(ards h!man reso!rces along (ith physical reso!rces
C;*&&en+e( of Moti4*tion
0i$erse and changing (or*force
Rightsi#ing, 0o(nsi#ing, Hire1n12ire, 6ay1for16erformance strategies
?E
Moti$es can only "e inferred, not seen
0ynamic nat!re of h!man needs
O03e-ti4e( of Moti4*tion
High prod!cti$ity
/ncrease !ality conscio!sness
)tim!late participation at (or*
T;eo%ie( of Moti4*tion
E*%&. T;eo%ie(
S-ientifi- M*n*+e'ent# Moti$ation "y scientific management is associated (ith 2&A&
+aylor.s techni!es of scientific management& +aylor said that people are primarily
moti$ated "y economic re(ards and (ill ta*e direction if offered an opport!nity to impro$e
their economic positions& 3ased on this +aylor descri"ed follo(ing arg!ments
6hysical (or* co!ld "e scientifically st!died to determine optimal method of
performance of a %o"
Aor*ers co!ld "e more efficient "y telling them ho( they (ere to do a %o"
Aor*ers (o!ld accept the a"o$e prescription if paid on differentiated piece(or*
"asis
0isad$antages , 0eh!mani#ed (or*ers, treated them as mere factors of prod!ction,
only stressed on monetary needs, ignored h!man needs
H/'*n Re&*tion( Mo9e&# >lton Mayo.s h!man relations model stressed on social contacts
as moti$ational factor& Creater importance (as gi$en to informal gro!ps& Ho(e$er too
m!ch reliance on social contacts to impro$e prod!cti$ity (as a ma%or dra("ac*&
Conte')o%*%. T;eo%ie(
Content T;eo%ie( (Maslo(.s Heed Hierarchy, Her#"erg.s 21factors, 8lderfer.s >RC,
8chie$ement Moti$ation +heory)
P%o-e(( T;eo%ie( (Lroom.s e?pectancy, 8dam.s >!ity, 6orter.s 6erformance and
)atisfaction Model)
Reinfo%-e'ent -*te+o%ie(
ERG T;eo%. (A&9e%fe%)# E6i(ten-e Re&*te9ne(( G%o=t;
>RC theory emphasi#es more on three "road needs that is e?istence, relatedness and
gro(th& /ts hypothesis is that there may "e more than one need operating at the same
time& >RC theory f!rther states that (hen a higher le$el need is fr!strating, the indi$id!al.s
desire to increase lo(er le$el needs ta*es place& +h!s >RC theory contains fr!stration1
regression dimension& 2r!stration at higher le$el need may lead to regression at lo(er le$el
need&
A94*nt*+e( , More consistent (ith o!r *no(ledge of differences among people, it is less
restricti$e and limiting, it is a $alid $ersion of need hierarchy&
Di(*94*nt*+e( , Ho clear1c!t g!ideline of indi$id!al "eha$ior patterns, too early to pass a
%!dgment on the o$erall $alidity of the theory&
T=o$"*-to% T;eo%. (He%50e%+)
2redric* Her#"erg states that the moti$ation concept is generally dri$en "y t(o factors of
moti$ators of %o" satisfactions and hygiene factors a"o!t %o" dissatisfaction& Moti$ators are
generally achie$ement, recognition, the (or* itself, responsi"ility, ad$ancement and
?1
gro(th, (hich are related to %o" satisfaction& Hygiene factors deal (ith e?ternal factors li*e
company policy, s!per$ision, administration and (or*ing conditions, salary, stat!s, sec!rity
and interpersonal relations& +hese factors are *no(n as hygiene factors or %o" dissatisfiers,
%o" conte?t factors&
A94*nt*+e( , tremendo!s impact on stim!lating tho!ght on moti$ation at (or*, increased
!nderstanding of role of moti$ation, specific attention to impro$e moti$ational le$els, %o"
design techni!e of %o" enrichment is contri"!tion of her#"erg, do!"le dimensions of t(o
factors are easy to interpret and !nderstand&
Di(*94*nt*+e( , 5imited "y its methodology, relia"ility !estioned, it foc!ses more on %o"
satisfaction not on moti$ation, no o$erall meas!re of satisfaction !tili#ed, inconsistent (ith
pre$io!s research, prod!cti$ity factor ignored&
MORA8E
Definition 1# )ental condition, attitude, willingness
Morale is a mental condition or attit!de of indi$id!al and gro!ps, (hich determines their
(illingness to co1operate&
Definition # Attitudes, voluntary cooperation
Morale is attit!des of indi$id!als and gro!ps to(ards their (or* en$ironment and to(ards
$ol!ntary cooperation to the f!ll e?tent of their a"ility in the "est possi"le interest of the
organi#ation&
0istinction "et(een Morale and Moti$ationE 1
Mo%*&e Moti4*tion
1& @omposite of feelings, attit!des and
sentiments that contri"!te to(ards
general satisfaction at (or*place&
2& 8 2!nction of freedom or restraint
to(ards some goal&
9& /t mo"ili#es sentiments&
:& Morale reflects Moti$ation&
1& Moti$ation mo$es person to action&
2& 8 6rocess of stim!lating indi$id!als
into action to accomplish desired
goals&
9& 8 2!nction of dri$es and needs&
:& /t mo"ili#es energy&
<& Moti$ation is a potential to de$elop
morale&
I')o%t*n-e of Mo%*&e *( * Re()on(i0i&it. of M*n*+e'ent
O%+*ni5*tion C&i'*te# Morale is an important part of organi#ation climate&
Attit/9e( , Senti'ent(# Morale reflects attit!des and sentiments to(ards
organi#ation goals and o"%ecti$es&
P%o9/-ti4it.# Morale highly affects prod!cti$ity and satisfaction of indi$id!als&
Tot*& S*ti(f*-tion# Morale is total satisfaction deri$ed from employees %o", "oss and
his organi#ation&
8*0o% P%o0&e'( So&4e9# High morale assists managers to o$ercome se$eral la"or
pro"lems li*e la"or t!rno$er, a"senteeism, indiscipline, grie$ances, disharmony etc&
Coo)e%*tion# Morale helps to see* cooperation from the (or*ers in getting higher
prod!ction at minim!m possi"le cost "y red!cing (astages of time, man, machines and
materials&
P%o9/-tion , P%o9/-ti4it.# 6rod!ction and prod!cti$ity are directly affected "y high
morale in a positi$e manner&
?
PERSONNE8 PO8ICIES
Me*nin+ of Pe%(onne& Po&i-.
8 6olicy is a 6lan of 8ction& /t is a statement of intentions committing the management to a
general co!rse of action& 8 6olicy may contain philosophy and principles as (ell& Ho(e$er a
policy statement is more specific and commits the management to a definite co!rse of
action&
Hence 6ersonnel policy is a plan of action to "e implemented "y HR department to(ards
the organi#ation and employees& 8 personnel policy spells o!t "asic needs of the
employees& +hro!gh personnel policy the personnel department ens!re a consistent
treatment to all personnel "y minimi#ing fa$oritism and discrimination& 6ersonnel policy
ser$es as a standard of performance for all employees& )o!nd personnel policies help "!ild
employee moti$ation and loyalty& 8nd this happens (hen personnel policies reflect fair play
and %!stice and help people gro( (ithin the organi#ation& 6ersonnel policies are also plans
of action to resol$e intra1personal, inter1personal and inter1gro!p conflicts&
I')o%t*n-e of Pe%(onne& Po&i-.
6ersonnel policy is $ery important for an organi#ation since it gi$es se$eral "enefits for
managing yo!r h!man reso!rces effecti$ely& /n the light of these "enefits listed "elo( (e
(o!ld "e a"le to !nderstand the relati$e importance of 6ersonnel policy&
1*(i- Nee9(# 6ersonnel policy helps the management to thin* deeply a"o!t "asic
needs of organi#ation and the employees&
Con(i(tent T%e*t'ent# 6ersonnel policies ens!re consistent treatment of all
personnel thro!gho!t the organi#ation&
Mini'i5e "*4o%iti('# 6ersonnel policies help minimi#e fa$oritism and discrimination
Contin/o/( *-tionE 6ersonnel policies ens!re contin!o!s action e$en if top
management is changed& +hese policies promote sta"ility&
St*n9*%9 of Pe%fo%'*n-e# 6ersonnel policies ser$e as a standard of performance&
Moti4*tion , 8o.*&t.# 6ersonnel policies help "!ild employee moti$ation and loyalty&
"*i% P&*. , 2/(ti-e# 6ersonnel policies reflect esta"lished principles of fair play and
%!stice&
G%o=t;# 6ersonnel policies help people gro( (ithin the organi#ation&
?!
WORIERSM PARTICIPATION IN MANAGEMENT
3roadly, (or*er.s participation in management means associating representati$es of
(or*ers at e$ery stage of decision1ma*ing& 6articipati$e management is considered as a
process "y (hich the (or*er.s share in decision1ma*ing e?tends "eyond the decisions that
are implicit in the specific content of the %o"s they do& +his amo!nts to the (or*ers ha$ing
a share in the reaching of final managerial decisions in an enterprise&
Definition 1# Association of 2or'ers in decision4ma'ing process
Aor*ers. participation may "e ta*en to co$er all terms of association of (or*ers and their
representati$es (ith the decision1ma*ing process, ranging from e?change of information,
cons!ltations, decisions and negotiations to more instit!tionali#ed forms s!ch as the
presence of the (or*ers. mem"ers on management or s!per$isory "oards or e$en
management "y (or*ers themsel$es&
S-o)e of =o%:e%(M )*%ti-i)*tion
)cope of (or*ers participation ranges o$er three managerial decision1ma*ing stages&
So-i*& De-i(ion(# Ho!rs of (or*, (elfare meas!res, (or* r!les, safety, health, sanitation
and noise control&
Pe%(onne& De-i(ion(# Recr!itment and selection, promotions and transfers, grie$ance
settlements, (or* distri"!tion
E-ono'i- De-i(ion(# Methods of man!fact!ring, a!tomation, lay offs, sh!t1do(ns,
mergers and ac!isitions and other financial aspects&
Met;o9( of Wo%:e%(M P*%ti-i)*tion in M*n*+e'ent
1& 3oard 5e$el
2& -(nership
9& @omplete @ontrol
:& )taff @o!ncils
<& 7oint @o!ncils
=& @ollecti$e 3argaining
4& 7o" >nlargement and >nrichment
8& )!ggestion )chemes
9& I!ality @ircles
10& >mpo(ered +eams
11& +otal I!ality Management
12& 2inancial 6articipation
P%e%eG/i(ite( of S/--e((f/& P*%ti-i)*tion
1& @learly defined and complementary -"%ecti$es
2& 2ree flo( of information and comm!nication
9& Representati$es of (or*ers from (or*ers themsel$es
:& -!tside trade !nion participation sho!ld "e a$oided
<& Aor*ers. ed!cation and training
?<
=& Ho threat "y participation
4& 8ssociation at all le$els of decision1ma*ing
1enefit( of P*%ti-i)*tion
1& Ci$es identity to an employee
2& Moti$ates employee
9& )elf1esteem, %o" satisfaction and cooperation impro$es
:& Red!ced conflicts and stress
<& More commitment to goals
=& 5ess resistance to change
4& 5ess la"or pro"lems
8& 3etter !ality s!ggestions e?pected
UNIONS
>mployee associations are pop!larly *no(n as !nions& Ho(e$er these !nions are not
confined to only stri*es and negotiations& +heir role is m!ch (ider than this& Bnions ma*e
their presence felt in recr!itment and selection, promotions, training, termination or lay off&
Many programs, (hich contri"!te to the I!ality of Aor* 5ife (IA5) and prod!cti$ity, are
!nderta*en "y management in cons!ltation (ith and (ith the cooperation of the !nions&
Bnions also participate in deciding (age and salary str!ct!re and negotiate re$isions once
in 9 or < years&
+rade !nions are $ol!ntary organi#ations of (or*ers or employers formed to promote their
interests thro!gh collecti$e action& +rade !nions 8ct 192= defines a trade !nion as a
com"ination, (hether temporary or permanent formed primarily for the p!rpose of
reg!lating the relation "et(een
1) Aor*men and >mployers
2) Aor*men and Aor*men
9) >mployers and >mployers
2or imposing restricti$e conditions on the cond!ct of any trade or "!siness and incl!des any
federation of t(o or more trade !nions
W;. 9o e')&o.ee( 3oin T%*9e Union(A
+o protect themsel$es against e?ploitation "y management
3y force
0issatisfaction
5ac* of 6o(er
Bnion /nstr!mentality
RO8E O" CONSTRUCTIVE AND POSITIVE UNION
Bnions ha$e a cr!cial role to play in /nd!strial Relations& Bnions ha$e follo(ing "road role
or o"%ecti$es as mentioned "elo(&
+o redress the "argaining ad$antage of the indi$id!al (or*er $is1R1$is the indi$id!al
employer, "y s!"stit!ting %oint or collecti$e action for indi$id!al action&
+o sec!re impro$ed terms and conditions of employment for its mem"ers and the
ma?im!m degree of sec!rity to en%oy these terms and conditions&
+o o"tain impro$ed stat!s for the (or*er in his (or* or her (or*
+o increase the e?tent to (hich !nions can e?ercise democratic control o$er
decisions, (hich affect their interests "y po(er sharing at the national, corporate
and plant le$els&
+he !nion po(er is e?erted primarily at t(o le$els& /nd!stry le$el to esta"lish %oint
reg!lation on "asic (ages and ho!rs (ith an employer.s association& 6lant le$el, (here the
shop ste(ards organi#ations e?ercise %oint control o$er some aspects of the organi#ation of
(or* and locali#ed terms and conditions of employment&
?>
Bnions are party to national, local and plant le$el agreements, (hich go$ern their actions to
a greater or lesser e?tent, depending on their po(er and on local circ!mstances&
UN"AIR 8A1OR PRACTICES
/nd!strial 0isp!tes 8ct 19:4 specifies the follo(ing as !nfair la"or practices
+o interfere, restrain, coerce (or*men in the e?ercise of their right to organi#e,
form, %oin or assist a trade !nion&
+hreatening (or*men (ith discharge or dismissal
+hreatening of loc*o!t or clos!re
Cranting (age increases to !ndermine trade !nion efforts
+o dominate, interfere (ith or s!pport financially or socially "y ta*ing acti$e interest
in forming o(n trade !nion, and
)ho(ing partiality or granting fa$or to one of se$eral trade !nions to a non1
recogni#ed trade !nion
+o esta"lish employer sponsored trade !nions
+o enco!rage or disco!rage mem"erships in any trade !nion "y discriminating
(or*man "y p!nishing or discharging, changing seniority ratings, ref!se promotions,
gi$ing !nmerited promotions, discharging !nion office "earers
+o discharge or dismiss (or*men "y $ictimi#ing, not in good faith, implicating in
criminal case, for patently false reasons
+o a"olish (or* of a reg!lar nat!re
+o transfer (or*men
+o sho( fa$oritism or partiality
+o replace (or*ers
+o recr!it (or*men d!ring legal stri*es
+o ind!lge in acts of $iolence or force
+o ref!se collecti$e "argaining
6roposing and contin!ing loc*o!ts
??
ORGANINATIONA8 DOWNSINING
0o(nsi#ing necessarily means red!cing (or* force to an optimal le$el depending !pon the
"!siness conditions and organi#ational needs& /t is said that an organi#ation sho!ld "e
rightly staffed ie& /t sho!ld not "e o$erstaffed and or !nderstaffed& +here are "roadly
follo(ing method !sed to do(nsi#e the (or*force as mentioned "elo(&
Ret%en-;'ent#
/t means termination of ser$ice& /t is a termination for reasons other than disciplinary
actions, retirement or s!perann!ating, e?piry and termination of contract or prolonged
illness& Retrenchment compensation and notice for retrenchment are only pre1conditions for
retrenchment and not a right, (hich a retrenched (or*er can claim& /f notice and
compensation are not gi$en, the (or*er (ill not "e called as retrenched& @ompensation is
paya"le for 1< days (ages for e$ery completed year of ser$ice "esides one month.s notice
or pay in lie! of notice& 3!t employee sho!ld ha$e completed at least one year of complete
ser$ice in order to recei$e compensation&
8*. Off(
5ay of is ina"ility of the employer to pro$ide employment to (or*ers d!e to circ!mstances
"eyond his control s!ch as shortage of po(er, coal, "rea*do(n of machinery, nat!ral
calamity etc& /t is not a termination of ser$ice& 5ay off compensation can "e claimed as a
stat!tory right "y the (or*er if he has completed one year of contin!o!s ser$ice or has
(or*ed for 2:0 days on the s!rface or 190 days !ndergro!nd in 12 calendar months&
@ompensation paya"le is half of the (ages&
Vo&/nt*%. Reti%e'ent S-;e'e(
LR) are anno!nced (hen there is a h!ge pool of old aged manpo(er occ!pying senior
positions amo!nting to s!rpl!s& Many organi#ations are pro$iding li"eral incenti$es to lea$e
"efore age of s!perann!ating& LR) in other (ords is a retirement "efore the age of
retirement&
?7
MEANING O" ORGANINATION STRUCTURE
-rgani#ational str!ct!re is the formal decision1ma*ing frame(or* "y (hich %o" tas*s are
di$ided, gro!ped, and coordinated& 2ormali#ation is an important aspect of str!ct!re& /t is
the e?tent to (hich the !nits of the organi#ation are e?plicitly defined and its policies,
proced!res, and goals are clearly stated& /t is the official organi#ational str!ct!re concei$ed
and "!ilt "y top management& +he formal organi#ation can "e seen and represented in
chart form& 8n organi#ation chart displays the organi#ational str!ct!re and sho(s %o" titles,
lines of a!thority, and relationships "et(een departments&
O%+*ni(*tion C;*%t(#
+he organi#ation charts are the sample and an !nderstanda"le (ay sho(ing the formal
organi#ation str!ct!re1/t gi$es a clear o$er$ie( of the shape and str!ct!re of an
organi#ation&
/t is an order and the design of an organi#ation capt!red in a $is!al form&
/t is a "l!e print or a "asis for proper concept!ali#ation, f!rther thin*ing, a disc!ssion "oard
for f!rther modifications (itho!t affecting the act!al changes&
+he organi#ation chart (ell dra(n, can gi$e an insight in to the organi#ation, its hierarchical
str!ct!re line and staff a!thority, a!thority and responsi"ility le$els, chain of command, line
of delegated a!thority, decentrali#ation or other(ise in an organi#ation, span of control etc&
/t also helps and g!ides the management in e$ol$ing changes (ith the changes in the
en$ironment and for faster reali#ation of goals&
/t is a good g!ide for the ne( recr!its in their initiation in the organi#ation and in
!nderstanding the a!thority responsi"ility le$els incl!ding his o(n&
"o%'*& O%+*ni(*tion
+he intentional str!ct!re of roles in a formally organised enterprise is a formal organisation
/t sho!ld ha$e an attri"!te of fle?i"ility, room for discretion and the recognition of indi$id!al
talents and the capacities& /n a gro!p f!nctioning the indi$id!al effort (ill ha$e to "e
chaneli#e thro!gh the gro!p leader and has to "e for the organi#ation.s good&
Info%'*& St%/-t/%e
+he informal organi#ation is the net(or*, !nrelated to the firmFs formal a!thority str!ct!re,
of social interactions among its employees& /t is the personal and social relationships that
arise spontaneo!sly as people associate (ith one another in the (or* en$ironment& +he
?@
s!per$isor m!st reali#e that the informal organi#ation affects the formal organi#ation& +he
informal organi#ation can press!re gro!p mem"ers to conform to the e?pectations of the
informal gro!p that conflict (ith those of the formal organi#ation& +his can res!lt in the
generation of false information or r!mors and resistance to change desired "y
management& +he s!per$isor sho!ld recogni#e the e?istence of information gro!ps, identify
the roles mem"er play (ithin these gro!ps, and !se *no(ledge of the gro!ps to (or*
effecti$ely (ith them& +he informal organi#ation can ma*e the formal organi#ation more
effecti$e "y pro$iding s!pport to management, sta"ility to the en$ironment, and !sef!l
comm!nication channels&
M*t%i6 St%/-t/%e
/n a matri? organi#ation, teams are formed and team mem"ers report to t(o or more
managers& M*t%i6 (t%/-t/%e( !tili#e f!nctional and di$isional chains of command
sim!ltaneo!sly in the same part of the organi#ation, commonly for one1of1a1*ind pro%ects&
/t is !sed to de$elop a ne( prod!ct, to ens!re the contin!ing s!ccess of a prod!ct to (hich
se$eral departments directly contri"!te, and to sol$e a diffic!lt pro"lem& 3y s!perimposing
a pro%ect str!ct!re !pon the f!nctional str!ct!re, a matri? organi#ation is formed that
allo(s the organi#ation to ta*e ad$antage of ne( opport!nities& +his str!ct!re assigns
specialists from different f!nctional departments to (or* on one or more pro%ects "eing led
"y pro%ect managers& +he matri? concept facilitates (or*ing on conc!rrent pro%ects "y
creating a d!al chain of command, the pro%ect (program, systems, or prod!ct) manager
and the f!nctional manager& 6ro%ect managers ha$e a!thority o$er acti$ities geared to(ard
achie$ing organi#ational goals (hile f!nctional managers ha$e a!thority o$er promotion
decisions and performance re$ie(s& 8n e?ample is an aerospace firm (ith a contract from
H8)8&
Di4i(ion*& St%/-t/%e
/n a 9i4i(ion*& o%+*ni5*tion, corporate di$isions operate as relati$ely a!tonomo!s
"!sinesses !nder the larger corporate !m"rella& /n a conglomerate organi#ation, di$isions
may "e !nrelated& 0i$isional str!ct!res are made !p of self1contained strategic "!siness
!nits that each prod!ces a single prod!ct& 2or e?ample, Ceneral MotorsF di$isions incl!de
@he$rolet, -ldsmo"ile, 6ontiac, and @adillac& 8 central head!arters, foc!sing or res!lts,
coordinates and controls the acti$ities, and pro$ides s!pport ser$ices "et(een di$isions&
2!nctional departments accomplish di$ision goals& 8 (ea*ness ho(e$er, is the tendency to
d!plicate acti$ities among di$isions&
O%+*ni- St%/-t/%e
-n the other hand, the organic str!ct!re is more fle?i"le, more adapta"le to a participati$e
form of management, and less concerned (ith a clearly defined str!ct!re& +he organic
organi#ation is open to the en$ironment in order to capitali#e !pon ne( opport!nities&
-rganic organi#ations ha$e a flat str!ct!re (ith only one or t(o le$els of management& "&*t
o%+*ni5*tion( emphasi#e a decentrali#ed approach to management that enco!rage high
employee in$ol$ement in decisions& +he p!rpose of this str!ct!re is to create independent
small "!sinesses or enterprises that can rapidly respond to c!stomersF needs or changes in
the "!siness en$ironment& +he s!per$isor tends to ha$e a more personal relationship (ith
his or her employees&
"/n-tion*& St%/-t/%e
?C
2!nctions or di$isions arrange traditional organi#ations& /n a f/n-tion*& o%+*ni5*tion,
a!thority is determined "y the relationships "et(een gro!p f!nctions and acti$ities&
2!nctional str!ct!res gro!p similar or related occ!pational specialties or processes together
!nder the familiar headings of finance, man!fact!ring, mar*eting, acco!nts recei$a"le,
research, s!rgery, and photo finishing& >conomy is achie$ed thro!gh speciali#ation&
Ho(e$er, the organi#ation ris*s losing sight of its o$erall interests as different departments
p!rs!e their o(n goals&
7E