HUMAN RESOURCE MANAGEMENT

HUMAN RESOURCE MANAGEMENT ( H R M )

Defi ni ti on 1 Integrat i on
HRM is a series of integrated decisions that form the employment relationships their !"ality contri#"tes to the a#ility of the organi$ations and
the employees to achie%e their o#&ecti%es'(
Defi ni ti on 2 Inf l uenci ng
HRM is concerned with the people dimensions in management. Since every organization is made up of people, acquiring
their services, developing their skills, motivating them to higher levels of performance and ensuring that they continue to
maintain their commitment to the organization are essential to achieving organizational o!ectives. "his is true, regardless
of the type of the organization # government, usiness, education, health, recreational, or social action.$
Defi ni ti on 3 Appl i cabi l i t y
HRM planning, organizing, directing and controlling of the procurement, development, compensation, integration,
maintenance and separation of human resources to the end that individual, organizational and social o!ectives are
accomplished.$
MEANING OF HRM: -
HRM is management function that helps managers to recruit, select, train and develop memers for an organization.
%viously HRM is concerned with the people&s dimensions in organizations. HRM refers to set of programs, functions, and
activities designed and carried out
Core el ements of HRM
Peopl e: %rganizations mean people. 't is the people who staff and manage organizations.
Mn!ement: HRM involves application of management functions and principles for acquisitioning, developing,
maintaining and remunerating employees in organizations.
Inte!rti on " Consi sten#$: (ecisions regarding people must e integrated and consistent.
Infl %en#e: (ecisions must influence the effectiveness of organization resulting into etterment of services to
customers in the form of high quality products supplied at reasonale cost.
Appl i #&i l i t$: HRM principles are applicale to usiness as well as non)usiness organizations too, such as
education, health, recreation and the like.
O)*ECT+,ES O- HRM. /
*. 'o#i etl O&( e#ti )es: "o e ethically and socially responsile to the needs and challenges of the society while
minimizing the negative impact of such demands upon the organization.
+. Or!ni *ti onl O&( e#ti )es: "o recognize the role of HRM in ringing aout organizational effectiveness. HRM is
only means to achieve to assist the organization with its primary o!ectives.
,. F%n#ti onl O&( e#ti )es: "o maintain department&s contriution and level of services at a level appropriate to the
organization&s needs.
4. Pers onal Obj ect i ves: To assist employees in achievin thei! pe!sonal oals" at least in so #a! as these oals enhance the in$ivi$%al&s
cont!i'%tion to the o!ani(ation. This is necessa!y to maintain employee pe!#o!mance an$ satis#action #o! the p%!pose o# maintainin" !etainin an$
motivatin the employees in the o!ani(ation.
SCOPE OF HRM: -
-rom Entr$ to the E+it of an employee in the organization
Scope of HRM can e descried ased on the following activities of HRM. .ased on these activities we can summarize the
scope of HRM into / different categories as mentioned elow after the activities. 0ets check out oth of them.
HRM A#ti )i ti es
*. HR 1lanning
+. 2o 3nalysis
,. 2o (esign
4. Recruitment 5 Selection
6. %rientation 5 1lacement
7. "raining 5 (evelopment
/. 1erformance 3ppraisals
8. 2o 9valuation
:. 9mployee and 9;ecutive Remuneration
*<. Motivation
**. =ommunication
*+. >elfare
*,. Safety 5 Health
*4. 'ndustrial Relations
, Cte!ori es of '#ope of HRM
*. 'ntroduction to HRM
+. 9mployee Hiring
,. 9mployee and 9;ecutive Remuneration
4. 9mployee Motivation
6. 9mployee Maintenance
7. 'ndustrial Relations
/. 1rospects of HRM
ROLE OF HRM
*. A-)isor$ Role: HRM advises management on the solutions to any prolems affecting people, personnel policies and
procedures.
a. Personnel Poli#ies: %rganization Structure, Social Responsiility, 9mployment "erms 5 =onditions,
=ompensation, =areer 5 1romotion, "raining 5 (evelopment and 'ndustrial Relations.
. Personnel Pro#e-%res: Relating to manpower planning procedures, recruitment and selection procedures, and
employment procedures, training procedures, management development procedures, performance appraisal procedures,
compensation procedures, industrial relations procedures and health and safety procedures.
+. F%n#tionl Role: "he personnel function interprets and helps to communicate personnel policies. 't provides guidance
to managers, which will ensure that agreed policies are implemented.
,. 'er)i#e Role: 1ersonnel function provides services that need to e carried out y full time specialists. "hese services
constitute the main activities carried out y personnel departments and involve the implementation of the policies and
procedures descried aove.
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Role of HR Mn!ers ./o-$0
*. H%mnitrin Role: Reminding moral and ethical oligations to employees
+. Co%nselor: =onsultations to employees aout marital, health, mental, physical and career prolems.
,. Me-itor: 1laying the role of a peacemaker during disputes, conflicts etween individuals and groups and
management.
4. 'po1esmn: "o represent of the company ecause he has etter overall picture of his company&s operations.
6. Pro&lem 'ol)er: Solving prolems of overall human resource management and long)term organizational planning.
7. C2n!e A!ent: 'ntroducing and implementing institutional changes and installing organizational development
programs
/. Mn!ement of Mnpo3er Reso%r#es: .roadly concerned with leadership oth in the group and individual
relationships and laor)management relations.
Role of HR Mn!ers .F%t%re0
*. 1rotection and enhancement of human and non)human resources
+. -inding the est way of using people to accomplish organizational goals
,. 'mprove organizational performance
4. 'ntegration of techniques of information technology with the human resources
6. ?tilizing ehavioral scientists in the est way for his people
7. Meeting challenges of increasing organizational effectiveness
/. Managing diverse workforce
FUNCTIONS OF HRM ALONG WITH OBJECTIVES
HRM O&(e#ti)es '%pportin! HRM F%n#tions
Social %!ectives @,A 0egal =ompliance
.enefits
?nion Management Relations
%rganizational %!ectives @/A Human Resource 1lanning
9mployee Relations
Recruitment 5 Selection
"raining 5 (evelopment
1erformance 3ppraisals
1lacement 5 %rientation
9mployee 3ssessment
-unctional %!ectives @,A 1erformance 3ppraisals
1lacement 5 %rientation
9mployee 3ssessment
1ersonal %!ectives @6A "raining 5 (evelopment
1erformance 3ppraisals
1lacement 5 %rientation
=ompensation
9mployee 3ssessment
Managerial Fun!i"n# "$ HRM
*. Plnnin!: 1lan and research aout wage trends, laor market conditions, union demands and other personnel
enefits. -orecasting manpower needs etc.
+. Or!ni*in!: %rganizing manpower and material resources y creating authorities and responsiilities for the
achievement of organizational goals and o!ectives.
,. 'tffin!: Recruitment 5 Selection
4. Dire#tin!: 'ssuance of orders and instructions, providing guidance and motivation of employees to follow the path
laid)down.
0' C"n!r"lling: Reg"lating personnel acti%ities and policies according to plans' O#ser%ations and comparisons of de%iations
Operti onl F%n#ti ons of HRM
*. Pro#%rement: 1lanning, Recruitment and Selection, 'nduction and 1lacement
+. De)elopment: "raining, (evelopment, =areer planning and counseling.
,. Compenstion: >age and Salary determination and administration
4. Inte!rtion: 'ntegration of human resources with organization.
6. Mintenn#e: Sustaining and improving working conditions, retentions, employee communication
1' Se%ara!i"n#: Managing separations ca"sed #y resignations2 terminations2 lay offs2 death2 medical sic3ness etc'
CHA44ENGE' OF HRM IN INDIAN ECONOM5 or CHA44ENGE' OF MODERN MANAGEMEN/
*. Gl o&l i *ti on: - Browing internationalization of usiness has its impact on HRM in terms of prolems of unfamiliar
laws, languages, practices, competitions, attitudes, management styles, work ethics and more. HR managers have a
challenge to deal with more functions, more heterogeneous functions and more involvement in employee&s personal life.
&' C"r %"ra! e Re- "r gani (a! i "n#: - Re"rgani(a!i"n rela!e# !" )erger# an* a+ui#i!i"n#, -"in! .en!ure#, !a/e ".er, in!ernal
re#!ru!uring "$ "rgani(a!i"n#' In !0e#e #i!ua!i"n#, i! i# *i$$iul! !" i)agine iru)#!ane# !0a! %"#e a grea!er 0allenge $"r HRM
!0an re"rgani(a!i"n# i!#el$' I! i# a 0allenge !" )anage e)%l"1ee#2 an3ie!1, uner!ain!ie#, in#euri!ie# an* $ear# *uring !0e#e
*1na)i !ren*#'
4' Ne5 Or gani (a! i "nal $ "r )#: - T0e 6a#i 0allenge !" HRM ")e# $r") !0e 0anging 0ara!er "$ ")%e!i!i"n#' T0e
")%e!i!i"n i# n"! 6e!5een in*i.i*ual $ir)# 6u! 6e!5een "n#!ella!i"n# "$ $ir)' Ma-"r ")%anie# are "%era!ing !0r"ug0 a ")%le3
5e6 "$ #!ra!egi alliane#, $"rging# 5i!0 l"al #u%%lier#, e!' T0e#e rela!i"n#0i%# gi.e 6ir!0 !" ")%le!el1 ne5 $"r)# "$
"rgani(a!i"nal #!ru!ure, 50i0 0ig0l1 *e%en* u%"n a regular e30ange "$ %e"%le an* in$"r)a!i"n' T0e 0allenge $"r HRM i# !"
"%e 5i!0 !0e i)%lia!i"n# "$ !0e#e ne5l1 ne!5"r/e* rela!i"n# )"re an* )"re, in %lae "$ )"re ")$"r!a6le 0ierar0ial
rela!i"n#0i%# !0a! e3i#!e* 5i!0in !0e "rgani(a!i"n# $"r age# in !0e %a#!'
4. C2n!i n! Demo!rp2i #s of 6or1for#e: - =hanges in workforce are largely reflected y dual career
couples, large chunk of young lood etween age old superannuating employees, working mothers, more educated and
aware workers etc. "hese dynamic workforces have their own implications for HR managers and from HRM point of view is
a true challenge to handle.
6. C2n!e- empl o$ee e+pe#tti ons: - >ith the changes in workforce demographics, employee e;pectations
and attitudes have also transformed. "raditional allurements like !o security, house, and remunerations are not much
attractive today, rather employees are demanding empowerment and equality with management. Hence it is a challenge
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for HRM to redesign the profile of workers, and discover new methods of hiring, training, remunerating and motivating
employees.
78 Ne3 In-%stri l Rel ti ons Appro#2: - 'n today&s dynamic world, even unions have understood that strikes
and militancy have lost their relevance and unions are greatly affected y it. "he trade union memership has fallen
drastically worldwide and the future of laor movement is in danger. "he challenge efore HRM is to adopt a proactive
industrial relations approach which should enale HR specialist to look into challenges unfolding in the future and to e
prepared to convert them into opportunities.
,8 Rene3e- Peopl e Fo#%s: - "he need of today&s world and usiness is the people&s approach. "he structure,
strategy, systems approach which worked in post war era is no more relevant in today&s economic environment which is
characterized y over capacities and intense competition. "he challenge of HR manager is to focus on people and make
them !ustifiale and sustainale.
8. Mn!i n! t2e Mn!ers: - Managers are unique trie in any society, they elieve they are class apart. "hey
demand decision)making, ossism, and operational freedom. However in the post lieralization era, freedom given to
managers is grossly misused to get rid of talented and hard working !uniors. "he challenge of HRM is how to manage this
trieC How to make them realize that the freedom given to them is to enale them make quick decisions in the interest of
the organization and not to resort to witch)hunting.
:. 6e1er 'o#i et$ i nterests: - 3nother challenge for HRM is to protect the interest of weaker sections of society.
"he dramatic increase of women workers, minorities and other ackward communities in the workforce has resulted in the
need for organizations to ree;amine their policies, practices and values. 'n the name of gloal competition, productivity and
quality the interests of the society around should not e sacrificed. 't is a challenge of today&s HR managers to see that
these weaker sections are neither denied their rightful !os nor are discriminated against while in service.
*<. Contri &%ti on to t2e s%##ess of or!ni *ti ons: - "he iggest challenge to an HR manager is to make all
employees contriute to the success of the organization in an ethical and socially responsile way. .ecause society&s well
eing to a large e;tent depends on its organizations.
STRATEGIC HUMAN RESOURCE MANAGEMENT: -
'trte!$:
Strategy is a way of doing something. 't includes the formulation of goals and set of action plans for accomplishment of
that goal.$
'trte!i # Mn!ement:
3 1rocess of formulating, implementing and evaluating usiness strategies to achieve organizational o!ectives is called
Strategic Management$
7e$ini!i"n "$ S!ra!egi Manage)en!: -
Strategic Management is that set of managerial decisions and actions that determine the long)term performance of a
corporation. 't includes environmental scanning, strategy formulation, strategy implementation and evaluation and control.$
"he study of strategic management therefore emphasizes monitoring and evaluating environmental opportunities and
threats in the light of a corporation&s strengths and weaknesses.
'teps i n 'trte!i # Mn!ement:
*. En)i ronmentl '#nni n!: 3nalyze the %pportunities and "hreats in 9;ternal 9nvironment
+. 'trte!$ Form%l ti on: -ormulate Strategies to match Strengths and >eaknesses. 't can e done at =orporate
level, .usiness ?nit 0evel and -unctional 0evel.
,. 'trte!$ Impl ementti on: 'mplement the Strategies
4. E)l %ti on " Control : 9nsure the organizational o!ectives are met.
IMPORTANCE 8 BENEFITS OF STRATEGIC MANAGEMENT
3llows identification, prioritization and e;ploration of opportunities.
1rovides an o!ective view of management prolems.
Represents framework for improved co)ordination and control
Minimizes the effects of adverse conditions and changes
3llows ma!or decisions to etter support estalished o!ectives
3llows more effective allocation of time and resources
3llows fewer resources and lesser time devoted to correcting ad hoc decisions
=reates framework for internal communication
Helps to integrate the individual ehaviors
1rovides asis for the clarification of responsiilities
9ncourages forward thinking
9ncourages favorale attitude towards change.
ROLE OF HRM IN STRATEGIC MANAGEMENT
Role in 'trte!$ Form%ltion: HRM is in a unique position to supply competitive intelligence that may e useful in
strategy formulation. (etails regarding advanced incentive plans used y competitors, opinion survey data from employees,
elicit information aout customer complaints, information aout pending legislation etc. can e provided y HRM. ?nique
HR capailities serve as a driving force in strategy formulation.
Role in 'trte!$ Implementtion: HRM supplies the company with a competent and willing workforce for e;ecuting
strategies. 't is important to rememer that linking strategy and HRM effectively requires more than selection from a series
of practice choices. "he challenge is to develop a configuration of HR practice choices that help implement the
organization&s strategy and enhance its competitiveness.
HUMAN RESOURCE DEE!OPMENT
Definition 1: Organizing and enhancing capacities to produce.
HR( is a process of organizing and enhancing the physical, mental and emotional capacities of individuals for productive
work.
Definition 2: Bring possibility of performance and growth
HR( means to ring aout the possiility of performance improvement and individual growth.
Human resource development is a process to help people to acquire competencies and to increase their knowledge, skills
and capailities for etter performance and higher productivity.
Pr"a!i.e HR7 S!ra!egie# $"r l"ng !er) %lanning an* gr"5!0
'n today&s fast changing, challenging and competitive environment HR( has to take a proactive approach that is to seek
preventive care in human relations. ?sing HR( strategies ma;imizations of efficiency and productivity could e achieved
through qualitative growth of people with capailities and potentialities to grow and develop. HR( is always a function of
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proper utilization of creative opportunities and availale environment through acquisition of knowledge, skills and attitudes
necessary for productive efforts.
0ong)term growth can also e planned y creating highly inspired groups of employees with high aspirations to diversify
around core competencies and to uild new organizational responses for coping with change.
3 proactive HR( strategy can implement activities that are geared up and directed at improving personal competence and
productive potentialities of human resources.
-ollowing strategic choices can e considered which would help today&s organizations to survive and grow.
C2n!e Mn!ement: Manage change properly and ecome an effective change agent rather than eing a victim of
change itself.
9l%es: 3dopt proactive HR( measures, which encourage values of openness, trust, autonomy, proactivity and
e;perimentation.
M+imi*e pro-%#ti)it$ n- effi#ien#$: "hrough qualitative growth of people with capailities and potentialities to grow
and develop thrive to ma;imize productivity and efficiency of the organization.
A#ti)ities -ire#te- to #ompeten#e &%il-in!: HR( activities need to e geared up and directed at improving personal
competence and productive potentialities of manpower resources.
/EAM EFFEC/I9ENE''
62t is t2e -efinition of tem: 3 team is defined as a reasonaly small group of people, who ring to the tale a set
of complementary and appropriate skills, and who hold themselves mutually accountale for achieving a clear and
identifiale set of goals.
/ems #n &e )er$ effe#ti)e8 'n many situations teams can achieve more than individuals working on their own. "eams
can ring to ear a wider range of skills and e;perience to solve a prolem. "eams also produce etter quality decisions.
>hen a team has een working on a prolem, and they have a sense of commitment to the common solution
62t -o 3e men &$ tem effe#ti)eness:
3 team can e considered to e effective if their output is !udged to meet or e;ceed the e;pectations of the people
who receive the output. 1roducing a quality output is not enough to !udge the effectiveness of the team.
"he second criteria, is that the team should still e ale function effectively after they have completed their task. 't
should not e torn apart y dissension.
-inally, effectiveness is !udged y whether the team feels satisfied with its efforts. 'f the team memers are pleased
with their efforts, if the e;perience has een a good one, if time spent away from their normal work has een worth the
effort, the team has likely een effective.
62t t2en re t2e f#tors t2t #ontri&%te to3r-s n effe#ti)e tem:
"here are three areas of group ehavior that must e addressed for teams to e effective. "he team must work hard. "he
effort that the team puts in to get the !o done is dependent on whether the nature of the task motivates the memers of
the team and whether the goals are challenging."he team must have the right mi; of skills to ring to the tale. "hese
skills include technical, prolem solving and interpersonal skills. "he team must e ale to develop appropriate approaches
to prolem solving. "his depends on developing a plan of attack and using appropriate techniques for analysis.
"he following factors contriute to hard work, skill development and effective prolem solving strategiesD
/2e ts1 itself s2o%l- &e moti)tin!8
"he task itself should e seen as eing worthwhile. 't needs to e a whole piece of work with a clear and visile
outcome so that people can feel a sense of ownership.
"he outcome of the task should e perceived as eing important to other peopleEs lives. 't should affect others in the
organization or impact on the e;ternal customer.
"he !o should provide the team with an opportunity for self)regulation. "hey should decide how the work is to e
done. Meaningful feedack should e provided on the how well the team is performing.
/2e tem nee-s #2llen!in! !ols; 32i#2 re #lerl$ -efine-8
>hen challenging goals are set the team will moilize its efforts to find innovative ways to achieve feats that may
have een considered impossile. 1roviding a challenging !o is the most important motivator to sustain group effort.
Boals provide a sense of direction to the team so that when conflict occurs it is possile to channel the conflict more
constructively y returning to the goals for direction.
"he team needs to uy in to the goals. "hey must have the opportunity to uy in and commit to achieving the goals.
Boals need to e challenging, ut not impossile to achieve. "hey also need to e measurale so that progress towards
achieving them can e monitored and results confirmed.
Re3r-s re importnt8
"he rewards need to suit the personal characteristics of the people on the team.
>hatever form the reward takes, it is important that group effort e recognized. %ne should avoid the destructive
effect of trying to single out individuals from the group, when there has een a group effort.
Rewards merely reinforce these conditions for fostering group effort.
/2e tem s2o%l- 2)e t2e ri!2t mi+ of s1ills.
"he right mi; of skills should e rought to the task at hand. 't is also a question of carefully reviewing the !o to
determine what relevant skills is required and selecting staff so that the team has the right alance. 1roviding relevant
training then makes up any shortfall in skills.
"echnical skills are required. -or teams who are trying to improve a process that cuts across department oundaries,
each function should e represented. %ne should achieve a alance of skills. "his means avoiding having a preponderance
of skills and e;perience in one specialized area. Sheer numers may weigh the solution towards the dominant group.
'n the case of permanent work teams it is likely that team memers will not have all the task relevant skills at the
onset. >hen the group is new, it is likely that memers will ring narrow skills learned in their old roles. "hey will need to
develop roader skills for the new !o. "o ensure that this is done, training and coaching should e provided.
"he memers of the team need to have prolem solving and decision)making skills as well as technical skills. >hen a
usiness is making its first venture into team ased work, it is likely that people will not have a good grasp of the
techniques related to prolem analysis and solution.
"hese relevant skills must e acquired, so it will e necessary to provide training. %ver a period of time staff will
ecome e;perienced in prolem solving techniques and the organization will develop a repertoire of skills among the staff
so this training will not always e necessary.
'nterpersonal skills are also important. "his is not as ovious as it may sound. Most people do not listen well. 0istening
is much more than eing quiet when some else is talking. 3ctive listening is required. Many people do not speak to the
point ut ramle on or go off at a tangent. Most people do not take criticism well and tend to e defensive aout their own
opinions.
<
A!ree on #o-e of #on-%#t.
3t the eginning of the team pro!ect it is important to develop a code of conduct for meetings. "he team needs to
agree on a set of rules to ensure that their efforts are purposeful and that all memers contriute to the work.
"he most critical rules pertain to attendance, open discussion, using an analytical approach, not pulling rank over
other memers, planning the work and sharing work assignments. "his will ensure that the work is done well and done on
time.
/2e tem m%st -e)elop effe#ti)e pro&lem sol)in! strte!ies8
-or the team to e ale to develop an appropriate strategy, it must have a clear definition of the prolem, know what
resources it has availale and the limits, and understand the e;pectations. 't must then develop a prolem)solving plan,
ased on the approach suggested in the section on continuous improvement.
>hen this does not happen, people are passive. "heir skills and knowledge are not utilized and they waste their time.
'pe#il tems 2)e spe#il iss%es8 -rom the perspective of organisational improvement we are interested in three types
of teams. %ne is the prolem solving team, another is the work team and then there is the senior management
team.1rolem solving teams are set up with a clearly defined task to investigate a prolem and recommend a solution.
Sometimes the same team will go on to implement the solution. >hen their task is completed the team is disanded and
memers go ack to their normal organisational duties.
"here are two important issues facing these teams. %ne is getting started and the other is handing over the
recommendations for implementation. "he key to getting started is to ensure that the team is committed to achieving an
agreed set of goals. Boals serve to focus the teamEs effort.
'mplementation is important. 't will not !ust happenF it must e planned. "he implementers must e rought into the
solution stage so that they develop a sense of ownership towards the solution and uy into it. "he est way to do this is to
have the prolem solving team do the implementation.
3nother approach is to phase the implementers into the team so that the memership changes prior to the
implementation. >hatever approach is used one should rememer that the idea is to implement a solution and not to
produce a report.
>ork teams are different in that they are a fi;ed part of the organization. "hey have an ongoing function, which is to
control a set of activities that make up a discrete operation in the overall usiness process. "hey need to focus on the
critical factors in their process and to control these factors to ensure a quality product.
HUMAN RESOURCE P!ANNING " H R P #
Definition 1: - Need, Availability, Supply!emand
HR1 includes estimation of how many qualified people are necessary to carry out the assigned activities, how many people
will e availale, and what, if anything, must e done to ensure personnel supply equals personnel demand at the
appropriate point in the future.$
Definition 2: - "ight numbers, #apability, Organization Ob$ectives
HR1 is a 1rocess, y which an organization ensures that it has the right numer and kind of people at the right place, at
the right time, capale of effectively and efficiently completing those tasks that will help the organization achieve its overall
o!ectives.$
Definition 3: - %ranslation of ob$ectives into &" numbersHR1 is a process of translating organizational o!ectives and
plans into the numer of workers needed to meet those o!ectives.$
MEANING = P>RPO'E OF HRP
'n simple words HR1 is understood as the process of forecasting an organization&s future demand for and supply of the
right type of people in the right numers.
't is only after HR1 is done, that the company can initiate and plan the recruitment and selection process.
HR1 is a su)system in the total organizational planning.
HR1 facilitates the realization of the company&s o!ectives y providing right type and right numer of personnel.
HR1 is important ecause without a clear)cut manpower planning, estimation of a organization&s human resource need
is reduced to mere guesswork.
NEE7 8 IMPORTANCE OF HRP
Fore#st f%t%re personnel nee-s: "o avoid the situations of surplus or deficiency of manpower in future, it is
important to plan your manpower in advance. -or this purpose a proper forecasting of futures usiness needs helps you to
ascertain our future manpower needs. -rom this angle, HR1 plays an important role to predict the right size of manpower in
the organization.
Cope 3i t2 #2n!e: HR1 enales an enterprise to cope with changes in competitive forces, markets, technology,
products and government regulations. Such changes generate changes in !o content, skills demands and numer of
human resources required.
Creti n! 2i !2l $ tl ente- personnel : Since !os are ecoming highly intellectual and incuments getting vastly
professionalized, HR1 helps prevent shortages of laor caused y attritions. -urther technology changes would
further upgrade or degrade !os and create manpower shortages. 'n these situations only accurate human
resource planning can help to meet the resource requirements. -urther HR1 is also an answer to the prolems of
succession planning.
Prote#ti on of 3e1er se#ti ons : 3 well)conceived personnel planning would also help to protect the interests of
the S=GS", physically handicapped, children of socially oppressed and ackward classes who en!oy a certain percentage of
employments notwithstanding the constitutional provisions of equal opportunity for all.
I nt ernat i onal s t rat e$i es: )nte!national e*pansion st!ateies la!ely $epen$ %pon e##ective HR+. ,ith !o-in t!en$s to-a!$s lo'al ope!ations" the
nee$ #o! HR+ #%!the! 'ecomes mo!e impo!tant as the nee$ to inte!ate HR+ mo!e closely into the o!ani(ation .eeps !o-in. This is also 'eca%se the
p!ocess o# meetin sta##in nee$s #!om #o!ein co%nt!ies !o-s in a comple* manne!. /o%n$at i on o# pe! s onnel # %nct i ons 0 HRP %rovi&es
essential in'or(ation 'or &esi$nin$ an& i(%le(entin$ %ersonnel ')nctions s)c* as recr)it(ent+ selection+ %ersonnel &evelo%(ent+ trainin$ an&
&evelo%(ent etc,
In#resi n! i n)estments i n HR: 3nother importance is the investment that an organization makes in human
capital. 't is important that employees are used effectively throughout their careers. .ecause human assets can increase
the organization value tremendously as opposed to physical assets
Resi stn#e to #2n!e " mo)e: "he growing resistance towards change and move, self evaluation, loyalty and
dedication making it more difficult to assume that organization can move its employees everywhere. Here HR1 ecomes
very important and needs the resources to e planned carefully.
Ot2er &enefi ts: -ollowing are the other enefits of HR1.
*. ?pper management has a etter view of HR dimensions of usiness
+. Management can anticipate imalances efore they ecome unmanageale and e;pensive.
?
,. More time is provided to locate talent
4. .etter opportunities e;ists to include women and minorities in future growth plans
6. .etter planning of assignments to develop managers
7. Ma!or and successful demands on local laor markets can e made.
HRP '5'/EM
HR4 System as s"ch incl"des follo5ing elements or sets for planning
%verall %rganization %!ectives
.usiness 9nvironment
-orecasting Manpower Heeds
3ssessing Manpower Supply
Matching Manpower (emand)Supply factors
.ased on these elements we can draw HR1 System 3rchitecture$ as under.
7
1%siness Envi!onment
O!ani(ation O'2ectives 3 Goals
Manpo-e! /o!ecast Manpo-e! S%pply Assessment
Manpo-e! +!o!ammin
Manpo-e! )mplementation
Cont!ol 3 Manpo-e!
Eval%ation
S%!pl%s Manpo-e! Sho!tae o# Manpo-e!
HRP PROCE''
Or!ni *ti onl O&( e#ti )es " Pol i #i es: -
"he o!ectives of HR plan must e derived from organizational o!ectives like specific requirements of numers and
characteristics of employees etc. HR1 needs to su)serve the overall o!ectives y ensuring availaility and utilization of
human resources. Specific policies need to e formulated to address the following decisions.
'nternal Hiring or 9;ternal HiringC
"raining 5 (evelopment plans
?nion =onstraints
2o enrichment issues
Rightsizing organization
3utomation needs
=ontinuous availaility of adaptive and fle;ile workforce
Mnpo3er Demn- Fore#sti n!: -
't is the process of estimating the future quantity and quality of people required.
"he asis should e annual udget and long term corporate plans
4eman$ #o!ecastin sho%l$ 'e 'ase$ on #ollo-in #acto!s.
Internal Factors: -
.udget constraints
1roduction levels
Hew products and services
%rganizational structure
Employee sepa!ation
External Factors: -
=ompetition environment
9conomic climate
0aws and regulatory odies
"echnology changes
Social -actors
Reasons for Manpower Demand Forecasting: -
"o quantify !os
"o determine the Staff)mi;
"o assess staffing levels and avoid unnecessary costs
1revent shortages of people
Monito! compliances o# leal !e5%i!ements -ith !ea!$s to !ese!vations
Man%"5er F"rea#!ing Te0ni+ue#: -
Mn!ement @%-!ment: 'n this techniques managers across all the levels decide the forecast on their own !udgment.
"his can e ottom)up or top)down approach and !udgments can e reviewed across departments, divisions and top
management can conclude on final numers of manpower required.
Rtion-/ren- Anl$sis: "his technique involves studying past ratios, and forecasting future ratios making some allowance
for changes in the organization or its methods.
6or1 't%-$ /e#2niA%es: 't is possile when work measurement to calculate the length of operations and the amount of
manpower required. "he starting point can e production udget, followed y standard hours, output per hourF man)hours
required etc could e computed.
Delp2i /e#2niA%es: "his technique solicits estimates from a group of e;perts, and HR1 e;perts normally act as
intermediaries, summarizes various responses and report the findings ack to e;perts.
Flo3 Mo-els: "his technique involves the flow of following components. (etermine the time required, 9stalish categories,
=ount annual movements, 9stimate proale transitions. Here demand is a function of replacing those who make a
transition.
Mnpo3er '%ppl $ Fore#sti n!: -
"his process measures the numer of people likely to e availale from within and outside the organization after making
allowance for asenteeism, internal movements and promotions, wastages, changes in hours and other conditions of work.
Reasons for Manpower Supply Forecasting:
=larify Staff)mi;es e;ist in the future
3ssess e;isting staff levels
1revent shortages
Monitor e;pected future compliance of legal requirements of !o reservations
Supply Analysis covers:
E+istin! H%mn Reso%r#es: HR 3udits facilitate analysis of e;isting employees with skills and ailities. "he e;isting
employees can e categorized as skills inventories @non)managersA and managerial inventories @managersA
S'ill inventory would include the following(
1ersonal data
Skills
Special Iualifications
Salary
2o History
=ompany data
=apailities
Special p!e#e!ences
)anagement inventories would include the following
>ork History
Strengths
>eaknesses
1romotion 1otential
=areer Boals
,
1ersonal (ata
Humer and "ypes of Suordinates
"otal .udget Managed
+!evio%s Manaement 4%ties
Internal Supply: -
'nternal supply techniques help to assess the following
'nflows and outflows @transfers, promotions, separations, resignations, retirements etc.A
"urnover rate @Ho. %f separations p.a. G 3verage employees p.a. J *<<A
=onditions of work @working hours, overtime, etc.A
3senteeism @leaves, asencesA
1roductivity level
6o' movements (6o' !otations o! c!oss #%nctional %tili(ations)
E+ternl '%ppl$: -
9;ternal sources are required for following reasons
Hew lood,
Hew e;periences
Replenish lost personnel
%rganizational growth
(iversification
9;ternal sources can e colleges and universities, consultants, competitors and unsolicited applications.
HR +lan )mplementation0 7
A series of action programs are initiated as a part of HR plan implementation as "nder'
Re#r%i tment " 'el e#ti on: 9mployees are hired against the !o vacancies. .ased on the manpower demand and
supply forecasts made, hiring of employees is initiated ased on supply forecasts. -or this internal and e;ternal sources of
manpower are utilized. 3 formal selection oard is estalished to interview and select the est of the candidates for the
required vacancies. -inally the selected employees also need to e placed on proper !os. Here some companies recruit
employees for specific !os while others recruit fresh trainees in large numer and train them for future manpower needs.
/ri ni n! n- De)el opment: "he training and development program is charted out to cover the numer of trainees,
e;isting staff etc. "he programs also cover the identification of resource personnel for conducting development program,
frequency of training and development programs and udget allocation.
Retri ni n! n- Re-epl o$mentB Hew skills are to e imparted to e;isting staff when technology changes or
product line discontinued. 9mployees need to e redeployed to other departments where they could e gainfully employed.
Retenti on Pl n: Retention plans cover actions, which would reduce avoidale separations of employees. ?sing
compensation plans, performance appraisals, avoiding conflicts, providing green pastures etc, can do this.
Do3nsi *i n! pl ns: >here there is surplus workforce trimming of laor force will e necessary. -or these identifying
and managing redundancies is very essential.
Mn!eri l '%##essi on Pl nni n!B Methods of managerial succession plans may vary. Most successful programs
seem to include top managements involvement and commitment, high)level review of succession plans, formal
performance assessment and potential assessment and written development plans for individuals. 3 typical succession
planning involves following activities.
3nalysis of demand for managers and professionals
3udit of e;isting e;ecutives
1ro!ection of future likely supply from internal and e;ternal sources
'ndividual career path planning
=areer counseling
3ccelerated promotions
1erformance related training and development
Strategic recruitment
C"n!r"l 8 E.alua!i"n "$ HRP: -
HR 1lan must also clarify responsiilities for control and estalish reporting procedures, which will enale achievements to
e monitored against the plan. "he HR 1lan should include udgets, targets and standards. "hese plans may simply e
reports on the numers employed, recruited against targets etc.
'>CCE''ION P4ANNING
Menin! of '%##ession Plnnin!
Succession planning is the process or activities connected with the succession of persons to fill key positions in the
organization hierarchy as vacancies arise. "he focus of attention is towards Kwhich& person the succession planning is
needed. "he focus is not more on career development ut it is more towards what kind of person is required to fill the
future vacancy. Succession planning focuses on identification of vacancies and locating the proale successor. -or e;ample
in succession planning the key concern can e who will e ne;t =9% or what will happen if the Marketing Manager retires in
coming March.
Importn#e of '%##ession Plnnin!
Succession planning helps when there is a sudden need arises due to reason or retirement of a key employee.
'ndividual employee comes to know in advance the level to which he can rise if he has the aility and aptitude for it.
'ndividual employee or successor feels happy when he feels that organization is taking care of his talents and
aspirations.
Succession planning helps create loyalty towards the organization and improved motivation and morale of individual
employees.
%rganization gains stale workforce and low employee turnover.
?ltimately organization ecomes successful in accomplishing its goals effectively.
CAREER P4ANNING
=areer planning is the process or activities offered y the organization to individuals to identify strengths, weaknesses,
specific goals and !os they would like to occupy.
=areer as a concept means a lifelong sequences of professional, educational and developmental e;periences that pro!ects
an individual through the world of work. 't is a sequence of positions occupied y a person during his life. =areer may also
e defined as amalgamation of changes in values, attitudes and motivation that occurs as a person grows older.
C
'n career planning, organization is concerned with strategic questions of career development. -urther the organization is
concerned aout if it should employ more graduates, more engineers, more scientists or more accountants etc. =areer
planning provides picture of succession plan for employees as per organizational needs. 't focuses on the asis of
performance, e;perience, could e placed where, when and how.
=areer planning is a process of integrating the employees& needs and aspirations with organizational requirements.
O&(e#ti)es of Creer Plnnin!
*. .uild commitment in the individual
+. (evelop long)range perspective
,. Reduce personal turnover e;penses
4. 0essen employee osolescence
6. 9nsure organizational effectiveness
7. 3llow individual to achieve personal and work related goals.
Importn#e of Creer Plnnin!
=areer planning is important ecause it helps the individual to e;plore, choose and strive to derive satisfaction with his own
career o!ectives.
@OD ANA45'I'
@OD:
2o is a Kgroup of tasks to e performed everyday.$
@OD ANA45'I'
Defi ni ti on 1: *+rocess of #ol l ect i ng I nf ormat i on,
2o 3nalysis is a process of studying and collecting information relating to operations and responsiilities of a specific !o.
"he immediate products of this analysis are K2o (escription& and K2o Specifications&.$
Defi ni ti on 2: *Syst emat i c -.pl orat i on of Act i vi t i es,
2o 3nalysis is a systematic e;ploration of activities within a !o. 't is a asic technical procedure that is used to define
duties and responsiilities and accountailities of the !o.$
Defi ni ti on 3: *I dent i f yi ng /ob "e0ui rement s,
2o is a collection of tasks that can e performed y a single employee to contriute to the production of some product or
service, provided y the organization. 9ach !o has certain aility requirements @as well as certain rewardsA associated with
it. 2o 3nalysis is a process used to identify these requirements.$
MEANING OF @OD ANA45'I'
2o 3nalysis is a process of collecting information aout a !o. "he process of !o analysis results into two sets of data.
2o (escription
2o Specification
3s a result 2o analysis involves the following steps in a logical order.
Steps of o! Anal ysi s
*. =ollecting and recording !o information
+. =hecking the !o information for accuracy
,. >riting !o description ased on information collected to determine the skills, knowledge, ailities and activities
required
4. ?pdating and upgrading this information
P>RPO'E OF @OD ANA45'I': -
H%mn Reso%r#e Pl nni n! .HRP0: ) "he numers and types of personnel are determined y the !os, which
need to e staffed. 2o related information in the form of 2o 3nalysis serves this purpose or use.
Re#r%i tment " 'el e#ti on: ) Recruitment precedes !o analysis. 't helps HR to locate places to otain
employees. 't also helps in etter continuity and planning in staffing in the organization. 3lso selecting a good candidate
also requires detailed !o information. .ecause the o!ective of hiring is to match the right candidate for right !o
/ri ni n! " De)el opment: "raining and development programs can e designed depending upon !o
requirement and analysis. Selection of trainees is also facilitated y !o analysis.
@o& E)l %ti on: 2o evaluation means determination of relative worth of each !o for the purpose of estalishing
wage and salary credentials. "his is possile with the help of !o description and specificationsF i.e. 2o 3nalysis.
Rem%nerti on: 2o analysis also helps in determining wage and salary for all !os.
Performn#e Appri sl : 1erformance appraisal, assessments, rewards, promotions, is facilitated y !o
analysis y way of fi;ing standards of !o performance.
Personnel Informti on: 2o analysis is vital for uilding personnel information systems and processes for
improving administrative efficiency and providing decision support.
'fet$ " Hel t2: 2o 3nalysis helps to uncover hazardous conditions and unhealthy environmental factors so
that corrective measures can e taken to minimize and avoid possiility of human in!ury.
PROCE'' OF @OD ANA45'I'
Pro#ess 1: Strategic =hoices
Pro#ess 2: =ollecting 'nformation
Pro#ess 3: 1rocessing 'nformation
Pro#ess <: 2o (escription
Pro#ess ?: 2o Specification
'trte!i # C2oi #es: -
Extent of i nvol vement of empl oyees: 9;tent of employee involvement is a deatale point. "oo much
involvement may result in ias in favor of a !o in terms of inflating duties and responsiilities. "oo less involvement leads
to suspicion aout the motives ehind the !o. .esides it may also lead to inaccurate information. Hence e;tent of
involvement depends on the needs of the organization and employee.
"evel of detai l s of # o! anal ysi s: "he nature of !os eing analyzed determines the level of details in !o analysis.
'f the purpose were for training programs or assessing the worth of !o, levels of details required would e great. 'f the
purpose is !ust clarification the details required would e less.
$i mi ng and fre%uency of o! Anal ysi s: >hen do you do 2o 3nalysisC
'nitial stage, for new organization
Hew 2o is created
E
=hanges in 2o, "echnology and 1rocesses
(eficiencies and (isparities in 2o
Hew compensation plan is introduced
?pdating and upgrading is required.
&ast- ori ented and future-ori ented o! Anal ysi s: -or rapidly changing organization more future oriented
approach would e desired. -or traditional organizations past oriented analysis would e required. However more future
oriented analysis may e derived ased on past data.
Sources of o! Data: -or !o analysis numer of human and non)human sources is availale esides !oholder
himself. -ollowing can e sources of data availale for !o analysis.
Non-H%mn 'o%r#es H%mn 'o%r#es
9;isting !o descriptions and specifications
9quipment maintenance records
9quipment design lueprints
3rchitectural lueprints of work area
-ilms of employee working
"raining manuals and materials
Magazines, newspapers, literatures
2o 3nalysis
2o 'ncuments
Supervisors
2o 9;perts
Col l e#ti n! Informti on: -
'nformation collection is done on the asis of following , parameters
%ypes of !ata for /ob Analysis1
>ork 3ctivities @"asks detailsA
'nterface with other !os and equipments @1rocedures, .ehaviors, MovementsA
Machines, "ools, 9quipments and >ork 3ids @0ist, Materials, 1roducts, ServicesA
2o =onte;t @1hysical, Social, %rganizational, >ork scheduleA
1ersonal Requirement @Skills, 9ducation, "raining, 9;perienceA
)ethods of !ata #ollection1
%servation
'nterview
Iuestionnaires
=hecklists
"echnical =onference
(iary Methods
2ho to #ollect !ata3
"rained 2o 3nalysts
Supervisors
2o 'ncuments
Pro#essi n! Informti on: -
%nce the !o information is collected it needs to e processed, so that it would e useful in various personnel functions.
Specifically !o related data would e useful to prepare !o description and specifications, which form the ne;t two
processes of !o analysis.
ME/HOD' OF DA/A CO44EC/ION:
'!servati on: 2o 3nalyst carefully oserves the !oholder and records the information in terms of what, how the !o is
done and how much time is taken. 't is a simple and accurate method, ut is also time consuming and inapplicale to !os
involving mental activities and unoservale !o cycles. "he analysts must e fully trained oservers.
Intervi ew: 'n this analyst interviews the !oholders, his supervisors to elicit information. 't can e Structured or
?nstructured 'nterview. 3gain this is also a time consuming method in case of large organizations. 1lus there is also a
prolem of ias.
(uesti onnai res: 3 standard questionnaire is given to !oholder aout his !o, which can e filled and given ack to
supervisors or !o analysts. "he questionnaire may contain !o title, !oholder&s name, managers name, reporting staff,
description of !o, list of main duties and responsiilities etc. 't is useful in large numer of staffs and less time consuming.
However the accuracy of information leaves much to e desired.
)*ec+l i sts: 't is more similar to questionnaire ut the response sheet contains fewer su!ective !udgments and tends to
e either yes or no variety. 1reparation of checklist is a challenging !o itself.
$ec*ni cal )onference: Here a conference of supervisors is used. "he analysts initiate the discussions providing !o
details. However this method lacks accuracy.
Di ary Met*ods: 'n this method !oholder is required to note down their activities day y day in their diary. 'f done
faithfully this technique is accurate and eliminates errors caused y memory lapses etc.
F%nti tti )e Met2o-s of @o& Dt Col l e#ti on: -
Posi ti on Anl $si s F%esti onni re .PAF0: -
13I is a highly specialized instrument for analyzing any !o in terms of employee activities. "he 13I contains *:4 !o
elements on which !o is created depending on the degree to which an element is present. "hese elements are grouped
together into 7 categories.
*. ? # ?saility G ?se of 2o
+. ' # 'mportance of 2o
,. " # "ime
4. 1 # 1ossiility of %ccurrence of 2o
6. 3 # 3pplicaility of 2o
7. S # Specialty "asks of 2o
"he primary advantage of 13I is that it can e used to analyze almost every !o. "his analysis provides a comparison of a
specific !o with other !o classifications, particularly for selection and remuneration purposes. However 13I needs to e
completed y trained !o analysts only rather than incuments.
Mn!ement Posi ti on Des#ri pti on F%esti onni re .MPDF0: -
Highly structured questionnaire, containing +<8 elements relating to managerial responsiilities, demand, restrictions and
other position characteristics "hese +<8 elements are grouped under *, categories.
13I and M1(I yi el d st andardi zed i nf ormat i on aout the worker and the ! o.
1G
F%n#ti onl @o& Anl $si s: -
' t i s a worker ori ented ! o anal yt i cal approach, whi ch att empt s to descri e the whol e person on t he
! o.
DARRIER' OF @OD ANA45'I'
Support from "op Management
Single means and source, reliance on single method rather than comination
Ho "raining or Motivation to 2oholders
Acti%ities and 6ata may #e 6istorted
@OD DE'CRIP/ION
2o (escription implies o!ective listing of the !o title, tasks, and responsiilities involved in a !o.$
2o description is a word picture in writing of the duties, responsiilities and organizational relationships that constitutes a
given !o or position. 't defines continuing work assignment and a scope of responsiility that are sufficiently different from
those of the other !os to warrant a specific title. 2o description is a road statement of purpose, scope, duties and
responsiilities of a particular !o.
Contents of @o& Des#ription
*. 2o 'dentification
+. 2o Summary
,. 2o (uties and Responsiilities
4. Supervision specification
6. Machines, tools and materials
7. >ork conditions
/. >ork hazards
8. (efinition of unusual terms
Formt of @o& Des#ription
2o "itle
RegionG0ocation
(epartment
Reporting to @%perational and ManagerialA
%!ective
1rincipal duties and responsiilities
Fet%res of Goo- @o& Des#ri pti on
*. ?p to date
+. 1roper 2o "itle
,. =omprehensive 2o Summary
4. =lear duties and responsiilities
6. 9asily understandale
7. State !o requirements
/. Specify reporting relationships
8. Showcase degrees of difficulties
:. 'ndicates opportunities for career development
*<. %ffer ird&s)eye)view of primary responsiilities
-O. SPECI/ICATIONS
2o Specification involves listing of employee qualifications, skills and ailities required to meet the !o description. "hese
specifications are needed to do !o satisfactorily.$
'n other words it is a statement of minimum and acceptale human qualities necessary to perform !o properly. 2o
specifications seeks to indicate what kind of persons may e e;pected to most closely appro;imate the role requirements
and thus it is asically concerned with matters of selection, screening and placement and is intended to serve as a guide in
hiring.
Contents of @o& 'pe#ifi#tions
*. 1hysical =haracteristics
+. 1sychological characteristics
,. 1ersonal characteristics
4. Responsiilities
6. (emographic features
-urther the !o specifications can e divided into three road categories
-ssential Attributes
!esirable Attributes
#ontra4Indicators 5 indicators hampering the success of $ob
-O. EA!UATION
2o 9valuation involves determination of relative worth of each !o for the purpose of estalishing wage and salary
differentials. Relative worth is determined mainly on the asis of !o description and !o specification only. 2o 9valuation
helps to determine wages and salary grades for all !os. 9mployees need to e compensated depending on the grades of
!os which they occupy. Remuneration also involves fringe enefits, onus and other enefits. =learly remuneration must
e ased on the relative worth of each !o. 'gnoring this asic principle results in inequitale compensation. 3 perception of
inequity is a sure way of de)motivating an employee.
2o evaluation is a process of analyzing and assessing the various !os systematically to ascertain their relative worth in an
organization.
2os are evaluated on the asis of content, placed in order of importance. "his estalishes 2o Hierarchies, which is a
purpose of fi;ation of satisfactory wage differentials among various !os.
2os are ranked @not !oholdersA
'#ope of @o& E)l%tion
"he !o evaluation is done for the purpose of wage and salary differentials, demand for and supply of laor, aility to pay,
industrial parity, collective argaining and the like.
Pro#ess of @o& E)l%tion:
*. (efining o!ectives of !o evaluation
a. 'dentify !os to e evaluated @.enchmark !os or all !osA
. >ho should evaluate !oC
11
c. >hat training do the evaluators needC
d. How much time involvedC
e. >hat are the criteria for evaluationC
f. Methods of evaluation to e used
+. >age Survey
,. 9mployee =lassification
4. 9stalishing wage and salary differentials.
Met2o-s of @o& E)l%tion
Anl$ti#l Met2o-s
Point Rn1in! Met2o-sD (ifferent factors are selected for different !os with accompanying differences in degrees
and points. F#tor Comprison Met2o-: "he important factors are selected which can e assumed to e common to all
!os. 9ach of these factors are then ranked with other !os. "he worth of the !o is then taken y adding together all the
point values.
Non-Anl$ti#l Met2o-s
Rn1in! Met2o-: 2os are ranked on the asis of its title or contents. 2o is not roken down into factors etc.
@o& Gr-in! Met2o-: 't is ased on the !o as a whole and the differentiation is made on the asis of !o classes
and grades. 'n this method it is important to form a grade description to cover discernile differences in skills,
responsiilities and other characteristics.
Pitflls of @o& E)l%tion:
9ncourages employees on how to advance in position when there may e limited opportunities for enhancement as a
result of downsizing.
't promotes internal focus instead of customer orientation
Hot suitale for forward looking organizations, which has trimmed multiple !o titles into two or three road !os.
-O. DESIGN
T*e !o$ical Se0)ence to -ob Anal1sis is -ob Desi$n,
Defi ni ti on 1: Integrat i on of wor', rewards and 0ual i f i cat i on
2o (esign integrates work content @tasks, functions, relationshipsA, the rewards and qualifications required including
skills, knowledge and ailities for each !o in a way that meets the needs of employees and the organization.$
'teps i n @o& Desi !n: -
*. Specification of 'ndividual "asks
+. Specification of Methods of "asks 1erformance
,. =omination of "asks into Specific 2os to e assigned to individuals
F#tors ffe#ti n! @o& Desi !n: -
Or!ni *ti onl f#tors:
=haracteristics of "asks @1lanning, 9;ecution and =ontrolling of "askA
>ork -low @1rocess SequencesA
9rgonomics @"ime 5 Motion StudyA
>ork 1ractices @Set of ways of performing tasksA
En)i ronmentl F#tors:
9mployee 3ilities and 3vailaility
Social and =ultural 9;pectations
De2)i orl El ements:
-eedack
3utonomy
?se of 3ilities
Lariety
/ECHNIF>E' OF @OD DE'IGN: -
6or1 'i mpl i fi #ti on: 2o is simplified or specialized. "he !o is roken down into small parts and each part is
assigned to an individual. "o e more specific, work simplification is mechanical pacing of work, repetitive work processes,
working only on one part of a product, predetermining tools and techniques, restricting interaction amongst employees, few
skills requirement. >ork simplification is used when !os are not specialized.
@o& Rotti on: >hen incuments ecome ore of routine !os, !o rotation is an answer to it. Here !os remain
unchanged, ut the incuments shift from one !o to another. %n the positive side, it in#reses t2e intrinsi# re3r-
potentil of (o& &e#%se of -ifferent s1ills n- &ilities nee-e- to perform it8 >orkers ecome more competent in
several !os, know variety of !os and improve the self)image, personal growth. -urther the worker ecomes more valuale
to the organization. 1eriodic !o changes can improve interdepartmental cooperation. %n the negative side, it may not e
much enthusiastic or efficiency may not e more. .esides !os may not improve the relationships etween task, while
activities and o!ectives remain unchanged. -urther training costs also rise and it can also de)motivate intelligent and
amitious trainees who seek specific responsiilities in their chosen specialties.
@o& Enl r!ement: It mens e+pn-in! t2e n%m&er of ts1s; or -%ties ssi!ne- to !i)en (o&8 2o
enlargement is naturally opposite to work simplification. 3dding more tasks or duties to a !o does not mean that new skills
and ailities are needed. "here is only horizontal e;pansion. 't is with same skills taking additional responsiilities like
e;tending working hours etc. 2o enlargement may involve reaking up of the e;isting work system and redesigning a new
work system. -or this employees also need to e trained to ad!ust to the new system. 2o enlargement is said to contriute
to employee motivation ut the claim is not validated in practice.
,enefits of o! Enlargement:
*. "ask Lariety
+. Meaningful >ork Modules
,. -ull 3ility ?tilization
4. >orker 1aced =ontrol
6. Meaningful 1erformance -eedack
Disadvantages of o! Enlargement
*. High "raining =osts
+. Redesigning e;isting work system required
,. 1roductivity may not increase necessarily
4. >orkload increases
12
6. ?nions demand pay#hike
7. 2os may still remain oring and routine
@o& Enri #2ment: 2o enrichment is improvisation of oth tasks efficiency and human satisfaction y uilding into
people&s !os, quite specifically, greater scope for personal achievement and recognition, more challenging and responsile
work and more opportunity for individual advancement and growth. 3n enriched !o will have more responsiility, more
autonomy @vertical enrichmentA, more variety of tasks @horizontal enrichmentA and more growth opportunities. "he
employee does more planning and controlling with less supervision ut more self)evaluation. 'n other words, transferring
some of the supervisor&s tasks to the employee and making his !o enriched.
Denefi ts of @o& enri #2ment
*. 't enefits employee and organization in terms of increased motivation, performance, satisfaction, !o
involvement and reduced asenteeism.
+. 3dditional features in !o meet certain psychological needs of !oholders due to skill variety, identity,
significance of !o etc.
,. 't also adds to employee self)esteem and self)control.
4. 2o enrichment gives status to !oholder and acts as a strong satisfier in one&s life.
6. 2o enrichment stimulates improvements in other areas of organization.
7. 9mpowerment is a y)product of !o enrichment. 't means passing on more authority and responsiility.
Demeri ts of @o& Enri #2ment
*. 0azy employees may not e ale to take additional responsiilities and power. 't won&t fetch the desired
results for an employee who is not attentive towards his !o.
+. ?nions resistance, increased cost of design and implementation and limited research on long term effect of !o
enrichment are some of the other demerits.
,. 2o enrichment itself might not e a great motivator since it is !o)intrinsic factor. 3s per the two)factor
motivation theory, !o enrichment is not enough. 't should e preceded y hygienic factors etc.
4. 2o enrichment assumes that workers want more responsiilities and those workers who are motivated y less
responsiility, !o enrichment surely de)motivates them
6. >orkers participation may affect the enrichment process itself.
7. =hange is difficult to implement and is always resisted as !o enrichment rings in a changes the
responsiility.
A%tonomo%s of 'el f-Di re#te- /ems: 9mpowerment results in self)directed work teams. 3 self #directed team
is an intact group of employees responsile for whole work segment, they work together, handle day)to)day prolems, plan
and control, and are highly effective teams.
Hi !2 Performn#e 6or1 Desi !n: 'mproving performance in an environment where positive and demanding goals
are set leads to high performance work design. 't starts from the principle of autonomous groups working and developing
an approach, which enales group to work effectively together in situations where the rate of innovation is very high.
%perational fle;iility is important and there is the need for employees to gain and apply new skills quickly with minimum
supervision. However due to ureaucracy high performance work design does not work.
DE'IGNING @OD' MO/I9A/ING @OD'
"he concept of motivating !os relates to 2o design. 2o design affects employee productivity, motivation and satisfaction.
2o design is a conscious effort to organize tasks, duties and responsiilities into a unit of work to achieve certain
o!ectives.
How a !o design creates a motivating !o can e seen with the help of certain components of !o design, namely, !o
rotation, !o enlargement, !o enrichment, work simplification etc.
>ork simplification simplifies the !o y reaking down the !o into small parts. Simplified !os are easy to perform hence
employees find it easy to do. "raining requirements are reduced and it enefits the organizations in terms of cost.
2o rotation means movement of employees of !o to !o across the organization. 't improves the intrinsic reward potential
of a !o ecause of different skills and ailities are needed to perform a !o. >orkers ecome more competent in several
!os rather than only one. 't also improves workers self image, provides personal growth and makes workers more valuale
to the organization. 1eriodic !o change can improve inter)departmental cooperation. 9mployees ecome more
understanding to each other&s prolems. =onsequently it provides a high level of motivation to employees ecause !os
itself ecome motivators. Hence !o rotation helps the !o ecome more motivating.
2o enlargement involves e;panding numer of tasks or duties assigned to a given !o.
2o enrichment involves improving task efficiency and human satisfaction. 2o enrichment provides greater scope for
personal achievement and recognition, more challenging and responsile work and more opportunity for individual
advancement and growth. 3n enriched !o gives vertical enrichment in the form of more responsiility and autonomy and a
horizontal enrichment in the form of variety of tasks and more growth opportunities. "he employee does more planning and
controlling with less supervision ut more self)evaluation. 3ll these factors lead to increased level of motivation and hence
make the !os more motivated.
=onsidering aove e;amples, we can say that designing !os is actually using the relevant and right techniques of !o
design, like rotation, enrichment, simplifications and make the !os more motivating to perform.
So we can say that (esigning 2os is actually creating Motivated 2os.
-O. SATIS/ACTION
2o satisfaction is the result of various attitudes possessed y an employee towards his !o, related factors and life in
general. "he attitudes related to !o may e wages, supervision, steadiness, working conditions, advancement
opportunities, recognitions, fair evaluation of work, social relations on !o, prompt settlement of grievances etc.
'n short !o satisfaction is a general attitude, which is the result of many specific attitudes in three areas namely, !o
factors, individual characteristics and group relationships outside the !o.
Components of @o& 'tisf#tion
Personl f#tors: Se;, (ependents, 3ge, "imings, 'ntelligence, 9ducation and 1ersonality.
@o& in2erent f#tors: "ype of work, Skills, %ccupational status, Beography, Size of plant
Mn!ement #ontrolle- f#tors: Security, 1ayment, -ringe enefits, 3dvancement opportunities and >orking conditions,
=o)workers, Responsiilities, Supervision
@o& 'tisf#tion " De2)ior reltions2ip is -es#ri&e- t2ro%!2 follo3in! e+mples8
Satisfaction 5 "urnover
Satisfaction 5 3senteeism
Satisfaction 5 3ccidents
Satisfaction 5 2o 1erformance
13
2OR3 SAMP!ING
4e#inition 80 Meas)rin$ an& 0)anti'1in$ activities4A (eas)re(ent tec*ni0)e 'or t*e 0)antitative anal1sis o' non-re%etitive or irre$)larl1
occ)rrin$ activit1,4
Meanin o# ,o!. Samplin 2or5 sa(%lin$ is base& on t*e t*eor1 t*at t*e %ercenta$e o' t*e n)(ber o' observations on a %artic)lar activit1 is a
reliable (eas)re o' t*e %ercenta$e o' t*e total act)al ti(e s%ent on t*at activit1, 6or1 smplin! opertes &$ n o&ser)er
t1in! series of rn-om o&ser)tions on prti#%lr Ht2in!H of interest .m#2ine; opertin! room; -o#1;
et#80 to o&ser)e its HstteH .3or1in!; i-le; sleepin!; empt$; et#808 62en eno%!2 smples re t1en; n
nl$sis of t2e o&ser)tions $iel-s sttisti#ll$ )li- in-i#tion of t2e sttes for e#2 t2in! nl$*e-8
Ass%me; for e+mple; t2t $o% 3is2 to -etermine t2e proportion of time f#tor$ opertor is 3or1in! or
i-le8 Also ss%me t2t 2GG rn-om o&ser)tions 3ere m-e of t2e opertor n- -%rin! 2< of t2ese 2e or
s2e 3s o&ser)e- to &e i-le8 /2erefore; $o% fin- t2t t2e in-i)i-%l is 3or1in! 1,7=2GG I CCJ of t2e
time8
A-)nt!es of 6or1 'mplin!'t is relatively ine;pensive to use and e;tremely helpful in providing a deeper
understanding of all types of operations. >hen properly used, it can help pinpoint those areas, which should e analyzed in,
further detail and can serve as a measure of the progress eing made in improving operations
.F%estions of 3or1 smplin! st%-$
>hat is our equipmentGasset utilizationC
>hen we are not adding value to the product, how are we spending our timeC
How are our inter)dependent systems performingC
>here should we focus our continuous improvement activitiesC
Distin#tion &et3een 6or1 smplin! n- H/ime 't%-iesH
>ork sampling is lower cost ecause it uses random samples instead of continuous oservations.
Many operators or machines can e studied y a single oserver
>ork sampling can span several days or weeks, thus minimizing the effects of day to day load or equipment variations
>ork Sampling tends to minimize operator ehavior modification during oservation.
,o!. Samplin" in ene!al" $oes not !e5%i!e a t!aine$ time7st%$y analyst to ta.e the o'se!vations. Also" stop-atches o! othe! timin $evices a!e not
!e5%i!e$. Many st%$ies ma.e %se o# o##7shi#t technicians o! ope!ato!s to ta.e the o'se!vations. 2or5 sa(%lin$ Met*o&olo$1
3n analyst R3H(%M0M oserves an activity @equipment, operating room, production lineA and notes the particular states of
the activity at each oservation.
"he ratio of the numer of oservations of a given state of the activity to the total numer of oservations taken will
appro;imate the percentage of time that the activity is in that given state.
Hote that random oservations are very critical for a work sampling study. 3 rief e;ample might e that // of *<<
oservations showed a machine to e running. >e might then conclude, within certain statistical limits, that the equipment
is operational //N of the time.
RECRUITMENT 6 SE!ECTION
RECR>I/MEN/
Defi ni ti on Of Re#r%i tment: 6i ndi ng and At t ract i ng Appl i cat i ons
Recruitment is the 1rocess of finding and attracting capale applicants for employment. "he 1rocess egins when new
recruits are sought and ends when their applications are sumitted. "he result is a pool of application from which new
employees are selected.$
MEANING OF RECR>I/MEN/:
Recruitment is understood as the process of searching for and otaining applicants for !os, from among them the right
people can e selected. "hough theoretically recruitment process is said to end with the receipt of applications, in practice
the activity e;tends to the screening of applications so as to eliminate those who are not qualified for the !o.
P>RPO'E AND IMPOR/ANCE OF RECR>I/MEN/: -
*. (etermine the present and future requirements in con!unction with personnel planning and !o analysis activities
+. 'ncrease the pool of !o candidates at minimum cost
,. Help increase success rate of selection process y reducing numer of under)qualified or over)qualified applications.
4. Reduce the proaility that !o applicants once selected would leave shortly
6. Meet legal and social oligations
7. 'dentify and prepare potential !o applicants
/. 9valuate effectiveness of various recruitment techniques and sources for !o applicants.
FAC/OR' GO9ERNING RECR>I/MEN/
E+ternl F#tors:
(emand and Supply @Specific SkillsA
?nemployment Rate @3rea)wiseA
0aor Market =onditions
1olitical and 0egal 9nvironment @Reservations, 0aor lawsA
'mage
Internl F#tors
Recruitment 1olicy @'nternal Hiring or 9;ternal HiringCA
Human Resource 1lanning @1lanning of resources requiredA
Size of the %rganization @.igger the size lesser the recruitment prolemsA
=ost
Browth and 9;pansion 1lans
1<
RECR>I/MEN/ PROCE''
Re#r%itment Plnnin!
Humer of contacts
"ypes of contacts
Re#r%itment 'trte!$ De)elopment
Make or .uy 9mployees
"echnological Sophistication
>here to look
How to look
Internl Re#r%itment .'o%r#e 10
1resent employees
9mployee referrals
"ransfers 5 1romotions
-ormer 9mployees
1revious 3pplicants
9valuation of 'nternal Recruitment
E+ternl Re#r%itment .'o%r#e 20
1rofessionals or "rade 3ssociations
3dvertisements
9mployment 9;changes
=ampus Recruitment
>alk)ins 'nterviews
=onsultants
=ontractors
(isplaced 1ersons
Radio 5 "elevision
3cquisitions 5 Mergers
=ompetitors
9valuation of 9;ternal Recruitment
'er#2in!
Source activation
Selling
Screening of 3pplications
E)l%tion n- Cost Control
Salary =ost
Management 5 1rofessional "ime spent
3dvertisement =ost
1roducing Supporting literature
Recruitment %verheads and 9;penses
=ost of %vertime and %utsourcing
=onsultant&s fees
E)l%tion of Re#r%itment Pro#ess
Return rate of applications sent out
Suitale =andidates for selection
Retention and 1erformance of selected candidates
Recruitment =ost
"ime lapsed data
'mage pro!ection
IN/ERNA4 RECR>I/MEN/
A-)nt!es Di s-)nt!es
*. 0ess =ostly
+. =andidates already oriented towards
organization
,. %rganizations have etter knowledge aout
internal candidates
4. 9mployee morale and motivation is enhanced
*. %ld concept of doing things
+. 't aets raiding
,. =andidates current work may e affected
4. 1olitics play greater roles
6. Morale prolem for those not promoted.
EK/ERNA4 RECR>I/MEN/
A-)nt!es Di s-)nt!es
*. .enefits of new skills and talents
+. .enefits of new e;periences
,. =ompliance with reservation policy ecomes
easy
4. Scope for resentment, !ealousies, and
hearturn are avoided.
*. .etter morale and motivation associated with
internal recruiting is denied
+. 't is costly method
,. =hances of creeping in false positive and false
negative errors
4. 3d!ustment of new employees takes longer
time.
'E4EC/ION: -
MEANING OF 'E4EC/ION:
Selection is the process of picking up individuals @out of the pool of !o applicantsA with requisite qualifications and
competence to fill !os in the organization. 3 formal definition of Selection is as under
Defi ni ti on of 'el e#ti on: +rocess of di f f erent i at i ng
Selection is the process of differentiating etween applicants in order to identify and hire those with a greater likelihood of
success in a !o.$
DIFFERENCE DE/6EEN RECR>I/MEN/ AND 'E4EC/ION:
1?
Re#r%itment 'ele#tion
*. Recruitment refers to the process of identifying
and encouraging prospective employees to apply
for !os.
+. Recruitment is said to e positive in its
approach as it seeks to attract as many candidates
as possile.
*. Selection is concerned with picking up the right
candidates from a pool of applicants.
+. Selection on the other hand is negative in its
application in as much as it seeks to eliminate as
many unqualified applicants as possile in order to
identify the right candidates.
PROCE'' = '/EP' IN 'E4EC/ION
*. Prel i mi nr$ Inter)i e3: "he purpose of preliminary interviews is asically to eliminate unqualified applications
ased on information supplied in application forms. "he asic o!ective is to re!ect misfits. %n the other hands preliminary
interviews is often called a courtesy interview and is a good pulic relations e;ercise.
+. 'el e#ti on /ests: 2oseekers who past the preliminary interviews are called for tests. "here are various types of
tests conducted depending upon the !os and the company. "hese tests can e 3ptitude "ests, 1ersonality "ests, and
3ility "ests and are conducted to !udge how well an individual can perform tasks related to the !o. .esides this there are
some other tests also like 'nterest "ests @activity preferencesA, Braphology "est @HandwritingA, Medical "ests, 1sychometric
"ests etc.
,. Empl o$ment Inter)i e3: "he ne;t step in selection is employment interview. Here interview is a formal and in)
depth conversation etween applicant&s acceptaility. 't is considered to e an e;cellent selection device. 'nterviews can e
%ne)to)%ne, 1anel 'nterview, or Sequential 'nterviews. .esides there can e Structured and ?nstructured interviews,
.ehavioral 'nterviews, Stress 'nterviews.
4. Referen#e " D#1!ro%n- C2e#1s: Reference checks and ackground checks are conducted to verify the
information provided y the candidates. Reference checks can e through formal letters, telephone conversations. However
it is merely a formality and selections decisions are seldom affected y it.
6. 'el e#ti on De#i si on: 3fter otaining all the information, the most critical step is the selection decision is to e
made. "he final decision has to e made out of applicants who have passed preliminary interviews, tests, final interviews
and reference checks. "he views of line managers are considered generally ecause it is the line manager who is
responsile for the performance of the new employee.
7. P2$si #l E+mi nti on: 3fter the selection decision is made, the candidate is required to undergo a physical
fitness test. 3 !o offer is often contingent upon the candidate passing the physical e;amination.
/. @o& Offer: "he ne;t step in selection process is !o offer to those applicants who have crossed all the previous
hurdles. 't is made y way of letter of appointment.
8. Contr#t of Empl o$ment: 3fter the !o offer is made and candidates accept the offer, certain documents need
to e e;ecuted y the employer and the candidate. Here is a need to prepare a formal contract of employment, containing
written contractual terms of employment etc.
E''EN/IA4' OF A GOOD 'E4EC/ION PRAC/ICE
*. (etailed !o descriptions and !o specifications prepared in advance and endorsed y personnel and line management
+. "rained the selectors
,. (etermine aids to e used for selection process
4. =heck competence of recruitment consultants efore retention
6. 'nvolve line managers at all stages
7. 3ttempt to validate the procedure
/. Help the appointed candidate to succeed y training and management development
DARRIER' /O EFFEC/I9E 'E4EC/ION: -
*. Per#epti on: >e all perceive the world differently. %ur limited perceptual aility is oviously a stumling lock to
the o!ective and rational selection of people.
+. Fi rness: .arriers of fairness includes discrimination against religion, region, race or gender etc.
,. 9l i -i t$: 3 test that has een validated can differentiate etween the employees who can perform well and those
who will not. However it does not predict the !o success accurately.
4. Rel i &i l i t$: 3 reliale test may fail to predict !o performance with precision.
6. Press%re: 1ressure rought on selectors y politicians, ureaucrats, relatives, friends and peers to select particular
candidate are also arriers to selection.
TRAINING 6 DEE!OPMENT
Defi ni ti on of /ri ni n! " De)el opment: Improve perf ormance
7%raining 8 !evelopment is any attempt to improve current or future employee performance y increasing an employee&s
aility to perform through learning, usually y changing the employee&s attitude or increasing his or her skills and
knowledge.$
MEANING OF /RAINING " DE9E4OPMEN/: -
"he need for "raining and (evelopment is determined y the employee&s performance deficiency, computed as follows.
"raining 5 (evelopment Heed O Standard 1erformance # 3ctual 1erformance
>e can make a distinction among "raining, (evelopment and 9ducation.
Di sti n#ti on &et3een /ri ni n! n- E-%#ti on
/rinin! E-%#tion
3pplication oriented
2o e;perience
Specific "ask in mind
Harrow 1erspective
"raining is 2o Specific
"heoretical %rientation
=lassroom learning
=overs general concepts
Has .road 1erspective
9ducation is no ar
/rinin!: "raining refers to the process of imparting specific skills. 3n employee undergoing training is presumed to have
had some formal education. Ho training program is complete without an element of education. Hence we can say that
"raining is offered to operatives.
E-%#tion: 't is a theoretical learning in classrooms. "he purpose of education is to teach theoretical concepts and develop
a sense of reasoning and !udgment. "hat any training and development program must contain an element of education is
well understood y HR Specialists. 3ny such program has university professors as resource persons to enlighten
participants aout theoretical knowledge of the topics proposed to discuss. 'n fact organizations depute or encourage
employees to do courses on part time asis. =9%s are known to attend refresher courses conducted y usiness schools.
17
"he education is more important for managers and e;ecutives rather than low cadre workers. 3nyways education is
common to all employees, their grades notwithstanding.
De)elopment: (evelopment means those learning opportunities designed to help employees to grow. (evelopment is not
primarily skills oriented. 'nstead it provides the general knowledge and attitudes, which will e helpful to employers in
higher positions. 9fforts towards development often depend on personal drive and amition. (evelopment activities such as
those supplied y management development programs are generally voluntary in nature. (evelopment provides knowledge
aout usiness environment, management principles and techniques, human relations, specific industry analysis and the
like is useful for etter management of a company.
O&(e#ti)es of .MDP0 Mn!ement De)elopment Pro!rms OR
A-)nt!es of De)elopment
*. Making them
Self)starters
=ommitted
Motivated
Result oriented
Sensitive to environment
?nderstand use of power
+. =reating self awareness
,. (evelop inspiring leadership styles
4. 'nstill zest for e;cellence
6. "each them aout effective communication
7. "o suordinate their functional loyalties to the interests of the organization
Differen#e &et3een /rinin! n- De)elopment
/rinin! De)elopment
"raining is skills focused (evelopment is creating learning ailities
"raining is presumed to have a formal education (evelopment is not education dependent
"raining needs depend upon lack or deficiency in
skills
(evelopment depends on personal drive and
amition
"rainings are generally need ased (evelopment is voluntary
"raining is a narrower concept focused on !o
related skills
(evelopment is a roader concept focused on
personality development
"raining may not include development (evelopment includes training wherever necessary
"raining is aimed at improving !o related efficiency
and performance
(evelopment aims at overall personal effectiveness
including !o efficiencies
62t re t2e /rinin! Inp%ts:
Skills
9ducation
(evelopment
9thics
1rolem Solving Skills
(ecision Making
3ttitudinal =hanges
Importn#e of /rinin! " De)elopment
Helps remove performance deficiencies in employees
Breater staility, fle;iility and capacity for growth in an organization
3ccidents, scraps and damages to machinery can e avoided
Serves as effective source of recruitment
't is an investment in HR with a promise of etter returns in future
Reduces dissatisfaction, asenteeism, complaints and turnover of employees
Nee- of /rinin!
In-i)i-%l le)el
(iagnosis of present prolems and future challenges
'mprove individual performance or fi; up performance deficiency
'mprove skills or knowledge or any other prolem
"o anticipate future skill)needs and prepare employee to handle more challenging tasks
"o prepare for possile !o transfers
Gro%p le)el
"o face any change in organization strategy at group levels
>hen new products and services are launched
"o avoid scraps and accident rates
I-entifi#tion of /rinin! Nee-s .Met2o-s0
In-i)i-%l /rinin! Nee-s I-entifi#tion
*. 1erformance 3ppraisals
+. 'nterviews
,. Iuestionnaires
4. 3ttitude Surveys
6. "raining 1rogress -eedack
7. >ork Sampling
/. Rating Scales
Gro%p 4e)el /rinin! Nee-s I-entifi#tion
*. %rganizational Boals and %!ectives
+. 1ersonnel G Skills 'nventories
,. %rganizational =limate 'ndices
4. 9fficiency 'ndices
6. 9;it 'nterviews
1,
7. M.% G >ork 1lanning Systems
/. Iuality =ircles
8. =ustomer Satisfaction Survey
:. 3nalysis of =urrent and 3nticipated =hanges
Denefits of /rinin! Nee-s I-entifi#tion
*. "rainers can e informed aout the roader needs in advance
+. "rainers 1erception Baps can e reduced etween employees and their supervisors"rainers can design course inputs
closer to the specific needs of the participants
,. (iagnosis of causes of performance deficiencies can e done
Met2o-s of /rinin!
On t2e @o& /rinin!s: "hese methods are generally applied on the workplace while employees is actually working.
-ollowing are the on)the)!o methods.
A-)nt!es of On-t2e-@o& /rinin!:
't is directly in the conte;t of !o
't is often informal
't is most effective ecause it is learning y e;perience
't is least e;pensive
"rainees are highly motivated
't is free from artificial classroom situations
Dis-)nt!es of On-t2e-@o& /rinin!:
"rainer may not e e;perienced enough to train
't is not systematically organized
1oorly conducted programs may create safety hazards
On t2e @o& /rinin! Met2o-s
*. @o& Rottion: 'n this method, usually employees are put on different !os turn y turn where they learn all sorts
of !os of various departments. "he o!ective is to give a comprehensive awareness aout the !os of different
departments. 3dvantage # employee gets to know how his own and other departments also function. 'nterdepartmental
coordination can e improved, instills team spirit. (isadvantage # 't may ecome too much for an employee to learn. 't is
not focused on employees own !o responsiilities. 9mployees asic talents may remain under utilized.
+. @o& Co#2in!: 3n e;perienced employee can give a veral presentation to e;plain the nitty)gritty&s of the !o.
,. @o& Instr%#tion: 't may consist an instruction or directions to perform a particular task or a function. 't may e
in the form of orders or steps to perform a task.
4. Apprenti#es2ips: Benerally fresh graduates are put under the e;perienced employee to learn the functions of
!o.
6. Interns2ips n- Assistnts2ips: 3n intern or an assistants are recruited to perform a specific time)ound !os
or pro!ects during their education. 't may consist a part of their educational courses.
Off t2e @o& /rinin!s: "hese are used away from work places while employees are not working like classroom trainings,
seminars etc. -ollowing are the off)the)!o methodsF
A-)nt!es of Off-t2e-@o& /rinin!:
"rainers are usually e;perienced enough to train
't is systematically organized
9fficiently created programs may add lot of value
Dis-)nt!es of Off-t2e-@o& /rinin!:
'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;pensive
"rainees may not e highly motivated
't is more artificial in nature
Off t2e @o& /rinin! Met2o-s
*. Clssroom 4e#t%res: 't is a veral lecture presentation y an instructor to a large audience. 3dvantage # 't can
e used for large groups. =ost per trainee is low. (isadvantages # 0ow popularity. 't is not learning y practice. 't is %ne)
way communication. Ho authentic feedack mechanism. 0ikely to oredom.
+. A%-io-9is%l: 't can e done using -ilms, "elevisions, Lideo, and 1resentations etc. 3dvantages # >ide range of
realistic e;amples, quality control possile,. (isadvantages # %ne)way communication, Ho feedack mechanism. Ho
fle;iility for different audience.
,. 'im%ltion: creating a real life situation for decision)making and understanding the actual !o conditions give it.
-ollowing are some of the simulation methods of trainings
a. Cse 't%-ies: 't is a written description of an actual situation and trainer is supposed to analyze and
give his conclusions in writing. "he cases are generally ased on actual organizational situations. 't is an ideal method to
promote decision)making ailities within the constraints of limited data. Role Pl$s: Here trainees assume the part of the
specific personalities in a case study and enact it in front of the audience. 't is more emotional orientation and improves
interpersonal relationships. 3ttitudinal change is another result. "hese are generally used in M(1.
. 'ensiti)it$ /rinin!sD "his is more from the point of view of ehavioral assessment, under different
circumstances how an individual will ehave himself and towards others. "here is no preplanned agenda and it is instant.
3dvantages # increased aility to empathize, listening skills, openness, tolerance, and conflict resolution skills.
(isadvantage # 1articipants may resort to their old haits after the training.
4. Pro!rmme- Instr%#tions: 1rovided in the form of locks either in ook or a teaching machine using questions
and -eedacks without the intervention of trainer. 3dvantages # Self paced, trainees can progress at their own speed,
strong motivation for repeat learning, material is structured and self)contained. (isadvantages # Scope for learning is lessF
cost of ooks, manuals or machinery is e;pensive.
6. Comp%ter Ai-e- Instr%#tions: 't is e;tension of 1' method, y using computers. 3dvantages # 1rovides
accountailities, modifiale to technological innovations, fle;ile to time. (isadvantages # High cost.
78 4&ortor$ /rinin!
Drriers to Effe#ti)e /rinin!:
*. 0ack of Management commitment
+. 'nadequate "raining udget
,. 9ducation degrees lack skills
1C
4. 0arge scale poaching of trained staff
6. Hon)coordination from workers due to downsizing trends
7. 9mployers and . Schools operating distantly
/. ?nions influence
Ho3 /o M1e /rinin! Effe#ti)e:
*. Management =ommitment
+. "raining 5 .usiness Strategies 'ntegration
,. =omprehensive and Systematic 3pproach
4. =ontinuous and %ngoing approach
6. 1romoting 0earning as -undamental Lalue
7. =reations of effective training evaluation system
INDUCTION 6 ORIENATION
Definition 1: +lanned Introduction
't is a 1lanned 'ntroduction of employees to their !os, their co)workers and the organization per se.$
Orienttion #on)e$s < t$pes of informtion:
*. (aily >ork Routine
+. %rganization 1rofile
,. 'mportance of 2os to the organization
4. (etailed %rientation 1resentationsP%rpose of Orienttion
*. "o make new employees feel at home in new environment
+. "o remove their an;iety aout new workplace
,. "o remove their inadequacies aout new peers
4. "o remove worries aout their !o performance
6. "o provide them !o information, environment
/$pes of Orienttion Pro!rms
*. -ormal or 'nformal
+. 'ndividual or Broup
,. Serial or (is!unctive
PrereA%isites of Effe#ti)e Orienttion Pro!rm
*. 1repare for receiving new employee
+. (etermine information new employee wants to know
,. (etermine how to present information
4. =ompletion of 1aperwork
Pro&lems of Orienttions
*. .usy or ?ntrained supervisor
+. "oo much information
,. %verloaded with paperwork
4. Biven menial tasks and discourage interests
6. (emanding tasks where failure chances are high
7. 9mployee thrown into action soon
/. >rong perceptions of employees
62t is t2e -ifferen#e &et3een in-%#tion n- orienttion:
'nduction referred to formal training programs that an employee had to complete efore they could start work
Orientation 5as the informal information gi%ing that made the recr"it a5are of the comfort iss"es / 5here the facilities are2 5hat time l"nch is
and so forth'How long should the induction process takeC
't starts when the !o ad is written, continues through the selection process and is not complete until the new team
memer is comfortale as a full contriutor to the organizationEs goals.
"he first hour on day one is a critical component ) signing on, issuing keys and passwords, e;plaining no go zones,
emergency procedures, meeting the people that you will interact with all have to e done immediately. ?ntil they are done
the newcomer is on the payroll, ut is not employed.
After that it is a matter of &"st in time training / e7panding the content as ne5 d"ties are "nderta3en'
We "nl1 e)%l"1 ne5 %e"%le "ne a! a !i)e - 0"5 an 5e in*u! !0e)9
"here are some issues, which cannot wait ) they vary according to your situation. 1erhaps a uddy system on the !o may
e the est way to deal with these. %ther su!ects may e incorporated with refresher training for current staff, or handled
as participant in an outside program. 1erhaps some can wait until there are groups of people who have started in the last
few months.
This may ta3e some creati%e thin3ing2 #"t the ans5er is !"ite simple / "ntil the ne5 people are integrated then they are less "sef"l' The math
is often ama$ingly simple / not ta3ing the time to train cons"mes more time than the training 5o"ld'
62t le)els of stff nee- in-%#tion:
E%ery#ody' The CEO needs to 3no5 different things to the temporary concierge2 #"t e%eryone needs a planned program of ind"ction and
orientation'
P4ACEMEN/
1lacement is allocation of people to !os. 't is assignment or reassignment of an employee to a new or different !o.
M>4/I 'LI44ING
Multi Skilling is "he 'ntegrated Skills 1rogram that has een developed to uild on the e;isting skills of the current work
force to reduce redundancies and avoid downsizing situations. "he o!ective of this program is to gain total integration of
skills.
"he program is ased around Kon)the)!o& 5 Koff)the)!o& competence. "hat is the aility to do the !o on the shop floor
@training to gain work e;perienceA and Koff)the)!o& @training in the classroomA to gain underpinning knowledge.
"he program requires the individual to demonstrate competence in a numer of different skills and this competence is
measured and assessed on the !o.Multi)skilling of course works est with more advanced skilled workers ecause their
individual skills levels are developed enough where they can fluidly transition from one skill to the ne;t without degradation
of a skills performance. 'f you are multi)skilling and a great percentage of your workers are having prolems e;ecuting one
of the skills effectively it is proaly a good signal you need to go ack to asics with that skill and pull it out of the multi)
skilling sequences. 3nother advantage of multi)skilling is the positive effect of what is called Pconte;tual learningP.
1E
=onte;tual learning involves discovery and improvement from two skills, which donEt, on the surface, appear to have a
direct relationship."he disadvantages of multi)skilling include the ovious danger of moving on to quickly toward advanced
skills and cominations without sufficiently drilling asic skills. >hile there is a great desire to learn quickly ' think this is
one of the reason we are seeing etter skilled from some of the est workers. "he consequence is that we ecome
Ppartially skilledP. "he greater the numer of partial skills we develop, the less chance we ever have of reaching our full
potential.
CHANGE MANAGEMEN/
C2n!e )is-M-)is
Recruitment
1erformance 3ppraisals
Menin! of C2n!e:
3lterations in #1eople, Structure and "echnology
E+ternl For#es of C2n!e:
Marketplace
0aor markets
9conomic =hanges
"echnology
0aws and Regulations
Internl For#es of C2n!e
=orporate Strategies
>orkplace
"echnology and 9quipments
9mployee 3ttitudes
C2n!e A!ents: .62o #n &rin! &o%t #2n!e:0
Managers
9;ternal =onsultants
Staff Specialists
Pro#ess of C2n!e .4e3ins steps0
?nfreezing
=hanging
Refreezing
62ite 3ter rpi-s metp2or
0ack of Staility
0ack of 1redictaility
Lirtual =haos
=onstant =hange
Resistn#e to C2n!e
?ncertainty and 3miguity
1ersonal 0oss =oncerns
(iselief in =hange enefits
/e#2niA%es of Re-%#in! Resistn#e to C2n!e
9ducation and =ommunication
Hegotiation
Manipulation and =o)optation
1articipation
-acilitation
=oercion
C2n!e Mn!ement
Structural =hanges "echnological =hanges 1eople =hanges
3uthority
=oordination
=entralization
1rocesses
Methods
9quipments
3ttitudes
9;pectations
.ehaviors
Or!ni*tionl De)elopment /e#2niA%es
Survey -eedack
Sensitivity "raining
1rocess =onsultation
"eam .uilding
'nter)group (evelopment
Con-itions F#ilittin! C2n!e
(ramatic =risis
0eadership =hange
>eak =ulture
Moung and Small %rganization @ageingA
/2e Ro- to C2n!e in C%lt%re
3nalyze the culture
Heed for change
Hew leadership
Reorganize
Restructure
Hew stories and rituals
=hange the !o systems
/FM 9=s8 Reen!ineerin!
"IM @"otal Iuality ManagementA Re engineering
=ontinuous =hange Radical and %ne time =hange
2G
-i;ing and 'mproving
Mostly focused on K3s)'s&
Systems indispensale
.ottom to "op
Redesigning
Mostly focused on Kwhat can eC&
"op to .ottom
Mn!in! Do3nsi*e- 6or1for#e
%pen and honest communication
3ssistance to them
Help for survivors of the downsized
'tress in 6or1pl#e
%pportunities stress
(emands stress
=onstraints stress
Ho3 to re-%#e 3or1pl#e stress
9mployee selection
%rganizational communication
1erformance 1lanning
2o redesign especially when processes change, !os merged, and relocation happens
9mployee counseling
"ime management programs
62t is #reti)it$:
=omining new ideas in unique ways or associating ideas in unusual ways
62t is inno)tion:
"urning creative ideas into useful products, services or methods of operations
3 'ets of )ri&le sim%lte inno)tion
Structural =hanges
=ultural =hanges
H"man Reso"rces Changes
C2n!e Defi ne-
P=hange is the window through which the future enters your life.P 'tEs all around you, in many types and shapes. Mou can
ring it aout yourself or it can come in ways
62$ C2n!e Mn!ement:
Mou can ring the change aout yourself or it can come in ways that give you little choice aout its what, when, and how.
-ighting against change can slow it down or divert it, ut it wonEt stop it however. 'f you wish to succeed in this rapidly
changing new world Pyou must learn to look on change as a friend ) one who presents you with an opportunity for growth
and improvement.P
:
"he rate of change in todayEs world is constantly increasing. 9verything that e;ists is getting old, wearing out and should e
replaced. PRevolutionary technologies, consolidation, well)funded new competition, unpredictale customers, and a
quickening in the pace of change hurled unfamiliar conditions at management.P
/
"rue success and long)term prosperity in the new world depends on your aility to adapt to different and constantly
changing conditions. "he strategic selection of the est strategic positioning in the playing field, or the .usiness Space,
your firm must take is complicated y the fact that the characteristics of the .usiness Space change over time. "oday, the
world is a different place than it was yesterday. P3t certain points, the difference ecomes material. Successful firms
recognize change. Lery successful ones anticipate it.P
8
E)ol %tionr$ .Plnne-0 C2n!e )ers%s Re)ol %tionr$
A#tion
How you change a usiness unit to adapt to shifting economy and markets is a matter of management style. 9volutionary
change, that involves setting direction, allocating responsiilities, and estalishing reasonale timelines for achieving
o!ectives, is relatively painless. However, it is rarely fast enough or comprehensive enough to move ahead of the curve in
an evolving world where stakes are high, and the response time is short. >hen faced with market)driven urgency, arupt
and sometimes disruptive change, such as dramatic downsizing or reengineering, may e required to keep the company
competitive. 'n situations when timing is critical to success, and companies must get more efficient and productive rapidly,
revolutionary change is demanded.
>hen choosing etween evolutionary change and revolutionary action, a leader must pursue a alanced and pragmatic
approach. Swinging too far to revolutionary e;treme may create Pan organizational culture that is so impatient, and so
focused on change, that it fails to give new initiatives and new personnel time to take root, stailize, and grow. >hatEs
more, it creates a high)tension environment that intimidates rather than nurtures people, leaving them with little or no
emotional investment in the company.P
4
Resistn#e to C2n!e
Most people donEt like change ecause they donEt like eing changed. P'f you want to make enemies, try to change
somethingP, advised >oodrow >ilson. >hen seeking to change an organization, itEs strategy or processes, leaders run into
HewtonEs law that a ody at rest tends to stay at rest. 3dvocates for change are greeted with suspicion, anger, resistance,
and even saotage.
4
PHot invented hereP syndrome also keeps many sound ideas from gaining the o!ective assessment
they deserve...More
/o-$N s 6orl- Rel iti es
"he magnitude of todayEs environmental, competitive, and gloal market change is unprecedented. 'tEs a very interesting
and e;citing world, ut itEs also volatile and chaoticD
9oltilit$ descries the economyEs rate of changeD e;tremely fast, with e;plosive upsurges and sudden
downturns.
C2os descries the direction of the economyEs changesD weEre not sure e;actly where weEre headed, ut we are
swinging etween the various alternatives at a very high speed.
7

21
"o cope with an unpredictale world you must uild an enormous amount of fle;iility into your organization. >hile you
cannot predict the future, you can get a handle on trends, which is a way to take advantage of change and convert risks
into opportunities.
Creti n! C2n!e for Impro)ement n- Competiti)e A-)nt!e
=hange creates opportunities, ut only for those who recognize and seize it. PSeeing is the first step, seizing the second,
and continuously innovating is the third.P
6
'nnovation redefines growth opportunities. 3s current products are ecoming
osolete faster than ever, in order to survive and prosper, organizations continually need to improve, innovate and modify
their products and services. "he Silicon Lalley slogan P9at lunch and you are lunchP is more than a reflection of increasingly
intense work ethic. Riding the wave of change is ecoming the most important part of the usiness. >hile the economy is
shifting and innovation is rampant, Pdoing it the same wayP is a recipe for corporate e;tinction.
*
Successful change efforts are those where the choices oth are internally consistent and fit key e;ternal and situational
variales. PMou have to find sutle ways to introduce change, new concepts, and give feedack to people so that they can
accept and grow with it.P
4
Anti#iptin! C2n!e
"here is ig difference etween anticipating and guessing. 3nticipation means e;pecting, eing aware of something in
advance, to regard it as possile. "he aility to anticipate is one of the key ingredients of efficient speed and change
management. P.eing ale to anticipate that which is likely to occur in the ne;t few months and the ne;t few years is
enough to give you an edge over ::N of the population who simply go along with whatever happens.P
/
How can you see the futureC 3ctually, anticipation is natural ) everyone does it every day. ?nfortunately, most people limit
e;ercising their anticipatory skills to daily routine matters. 3ll you really need to start applying these skills for your usiness
is a small head start...More
'trtin! 3it2 5o%rself
"he est place to start change is with yourself. 'f whatever you do doesnEt work, you must e fle;ile ) you must change
your action plan if the current one does not produce the required results. 'f you want other people to change, you must e
prepared to make the first step yourself. 'f you cannot change your environment, you should change your attitude. "o
achieve effective personal change, consider practicing the H01 "echnology of 3chievement that was specially developed to
discover how people can e;cel, and most particularly when managing change ) how to create the Edifference that makes the
differenceE...More
4e-i n! C2n!e"he old ways of management no longer work and will never work again. Successful change requires
leadership. >hen change fails to occur as planned, the cause if often to e found at a deeper level, rooted in the
inappropriate ehavior, eliefs, attitudes, and assumptions of would)e leaders.
7
0eadership is all aout the process of
changeD how to stay ahead of it, master it, enefit from the opportunities it rings. "he est leaders strike first y taking
the offensive against economic cycles, market trends, and competitors. "hey discover the most effective ways for achieving
significant change ) Pa change that identifies the realities of the usiness environment and reorders them so that a new
force is ale to leverage, rather than resist, those realities in order to achieve a competitive advantage.P
4
"he following system will help you to unleash the power of your organization and reshape it into a more competitive
enterpriseD
(evelop a vision. "o create a seamless ridge from the vision to action, start with your top management team )
they should understand and emrace your vision.
3lign all your people against the endgame. 'nvite their opinion regarding critical issues such as the direction you
should e headed, the changes you have to make, and the resources you have to acquire.
?sing the employee feedack, develop a strategic plan. Stay laser)focused on the methods that will drive your
usiness unit towards its stated o!ectives.
.uild a diverse leadership group representing all the key constituencies of your organization. "hey will share
responsiility for plan management.
Share detail information aout the company and the change progress ) people have to understand where you are
and where you are going in order to contriute effectively to your mission.Mn!i n! Or!ni*tionl C2n!e
Success in usiness doesnEt come from feeling comfortale. 'n todayEs technology)driven world, usiness life cycles have
accelerated e;ponentially. "he challenge is to keep a step ahead of changing market conditions, new technologies and
human resources issues.
"he wheel of usiness evolution is a framework and set of tools, which enales you to manage the comple; process of
organizational change and transformation more effectively. "he sequence of the eight segments ) usiness environment,
usiness ecosystem, usiness design, leadership style, organizational values, management process, knowledge
management systems, and performance measures ) reflects the learning cycle that occurs when outside)in or ottom)up
learning takes place.De2)i orl C2n!e
"he challenge and the shape of an organizationEs ehavioral change program depend on the corporate culture and the
targeted ehaviors that need to e changed. Mour change program needs to e e;plicitly uilt around these challenges.
PLery often, these programs involve the creation of incentives which elegantly reinforce the desired ehavior @and therein
reinforce the change loop in the learning dynamicA.P
8
...Moti )ti n! Emplo$ees to Em&r#e C2n!e
Mou have a choice of instruments to motivate your people to emrace change. 1erformance)incentive levers are especially
useful in driving those who lack direction or initiative. Mou may also encourage employee feedack on where and how the
company can take corrective action and reward employees for their contriution. 'n any case, Ponce you open the gates
and encourage employees to serve as agents of change, you must demonstrate that their input will have a real)world
impact on the way your company does usiness.P
4
%n the other side, you have to e rather aggressive when dealing with people who view change as a threat and create
roadlocks that stall progress. 3nyone who thinks that itEs harmless to make e;ceptions for a few people and shift
resources to accommodate poor performers is missing an important point. P'tEs not a few people who are at stake, itEs the
corporate cultureP, says Miles Breer, of Savannah 9lectric. P.y permitting those who resist or retaliate against change to
22
remain in the company, you roadcast a message that suggests supporting the companyEs mission statement is optional.
9ven worse, you permit the least)committed employees to taint and influence the attitude and performance of their peers.P
Mo)in! 3it2 'pee-
'n the new economy where everything is moving faster and itEs only going to get faster, the new mantra is, P(o it more
with less and do it faster.P
*
"o e ale to move with speed, companies need to estalish a change)friendly environment and
develop four ma!or competenciesD fast thinking, fast decision making, fast acting, and sustaining speed.
M1in! F%i #1 De#i sions t2ro%!2 Est&l i s2i n! G%i-in! Pri n#iples
-ast companies that have demonstrated the aility to sustain surge and velocity all have estalished sets of guiding
principles to help them make quick decisions. 3andoning theoretical and politically correct EvaluesE and ureaucratic
procedures in favor of a practical, down)to)earth list of guiding principles will help your company make the decision)making
process much faster. %nly one question will need to e asked of any proposed course of actionD (oes it fit our guiding
principlesC
PER/ORMANCE APPRAISA!S
Definition 1: Systematic -valuation
't is a systematic evaluation of an individual with respect to performance on the !o and individual&s potential for
development.$
Definition 2: 6ormal System, "easons and )easures of future performance
't is formal, structured system of measuring, evaluating !o related ehaviors and outcomes to discover reasons of
performance and how to perform effectively in future so that employee, organization and society all enefits.$
Menin! of Performn#e Apprisls
1erformance 3ppraisals is the assessment of individual&s performance in a systematic way. 't is a developmental tool used
for all round development of the employee and the organization. "he performance is measured against such factors as !o
knowledge, quality and quantity of output, initiative, leadership ailities, supervision, dependaility, co)operation,
!udgment, versatility and health. 3ssessment should e confined to past as well as potential performance also. "he second
definition is more focused on ehaviors as a part of assessment ecause ehaviors do affect !o results.
Performn#e Apprisls n- @o& Anl$sis Reltions2ip
2o 3nalysis 1erformance Standards 1erformance 3ppraisals
(escrie the work and personnel
requirement of a particular !o.
"ranslate !o requirements into
levels of acceptale or
unacceptale performance
(escrie the !o relevant
strengths and weaknesses of
each individual.
O&(e#ti)es of Performn#e Apprisls
>se of Performn#e Apprisls
*. 1romotions
+. =onfirmations
,. "raining and (evelopment
4. =ompensation reviews
6. =ompetency uilding
7. 'mprove communication
/. 9valuation of HR 1rograms
8. -eedack 5 Brievances
< Gols of Performn#e Apprisls
Beneral Boals Specific Boals
(evelopmental ?se 'ndividual needs
1erformance feedack
"ransfers and 1lacements
Strengths and (evelopment needs
3dministrative (ecisions G ?ses Salary
1romotion
Retention G "ermination
Recognition
0ay offs
1oor 1erformers identification
%rganizational Maintenance HR 1lanning
"raining Heeds
%rganizational Boal achievements
Boal 'dentification
HR Systems 9valuation
Reinforcement of organizational needs
(ocumentation Lalidation Research
-or HR (ecisions
0egal Requirements
Performn#e Apprisl Pro#ess
*. %!ectives definition of appraisal
+. 2o e;pectations estalishment
,. (esign an appraisal program
4. 3ppraise the performance
6. 1erformance 'nterviews
7. ?se data for appropriate purposes
/. 'dentify opportunities variales
8. ?sing social processes, physical processes, human and computer assistance
Differen#e &et3een /r-itionl n- Mo-ern .'$stems0 ppro#2 to Apprisls
#ategories %raditional Appraisals )odern, Systems Appraisals
Buiding Lalues 'ndividualistic, =ontrol oriented, Systematic, (evelopmental,
23
(ocumentary 1rolem solving
0eadership Styles (irectional, 9valuative -acilitative, =oaching
-requency %ccasional -requent
-ormalities High 0ow
Rewards 'ndividualistic Brouped, %rganizational
/ECHNIF>E' = ME/HOD' OF PERFORMANCE APPRAI'A4'
Humerous methods have een devised to measure the quantity and quality of performance appraisals. 9ach of the methods
is effective for some purposes for some organizations only. Hone should e dismissed or accepted as appropriate e;cept as
they relate to the particular needs of the organization or an employee.
.roadly all methods of appraisals can e divided into two different categories.
1ast %riented Methods
-uture %riented Methods
Pst Oriente- Met2o-s
*. Rtin! '#les: Rating scales consists of several numerical scales representing !o related performance criterions such
as dependaility, initiative, output, attendance, attitude etc. 9ach scales ranges from e;cellent to poor. "he total numerical
scores are computed and final conclusions are derived. 3dvantages # 3daptaility, easy to use, low cost, every type of !o
can e evaluated, large numer of employees covered, no formal training required. (isadvantages # Rater&s iases
+. C2e#1list: ?nder this method, checklist of statements of traits of employee in the form of Mes or Ho ased questions is
prepared. Here the rater only does the reporting or checking and HR department does the actual evaluation. 3dvantages #
economy, ease of administration, limited training required, standardization. (isadvantages # Raters iases, use of improper
weighs y HR, does not allow rater to give relative ratings
,. For#e- C2oi#e Met2o-: "he series of statements arranged in the locks of two or more are given and the rater
indicates which statement is true or false. "he rater is forced to make a choice. HR department does actual assessment.
3dvantages # 3sence of personal iases ecause of forced choice. (isadvantages # Statements may e wrongly framed.
4. For#e- Distri&%tion Met2o-: here employees are clustered around a high point on a rating scale. Rater is compelled
to distriute the employees on all points on the scale. 't is assumed that the performance is conformed to normal
distriution. 3dvantages # 9liminates (isadvantages # 3ssumption of normal distriution, unrealistic, errors of central
tendency.
6. Criti#l In#i-ents Met2o-: "he approach is focused on certain critical ehaviors of employee that makes all the
difference in the performance. Supervisors as and when they occur record such incidents. 3dvantages # 9valuations are
ased on actual !o ehaviors, ratings are supported y descriptions, feedack is easy, reduces recency iases, chances of
suordinate improvement are high. (isadvantages # Hegative incidents can e prioritized, forgetting incidents, overly close
supervisionF feedack may e too much and may appear to e punishment.
7. De2)iorll$ An#2ore- Rtin! '#les: statements of effective and ineffective ehaviors determine the points. "hey
are said to e ehaviorally anchored. "he rater is supposed to say, which ehavior descries the employee performance.
3dvantages # helps overcome rating errors. (isadvantages # Suffers from distortions inherent in most rating techniques.
/. Fiel- Re)ie3 Met2o-: "his is an appraisal done y someone outside employees& own department usually from
corporate or HR department. 3dvantages # ?seful for managerial level promotions, when comparale information is
needed, (isadvantages # %utsider is generally not familiar with employees work environment, %servation of actual
ehaviors not possile.
8. Performn#e /ests " O&ser)tions: "his is ased on the test of knowledge or skills. "he tests may e written or an
actual presentation of skills. "ests must e reliale and validated to e useful. 3dvantage # "ests may e apt to measure
potential more than actual performance. (isadvantages # "ests may suffer if costs of test development or administration
are high.
:. Confi-entil Re#or-s: Mostly used y government departments, however its application in industry is not ruled out.
Here the report is given in the form of 3nnual =onfidentiality Report @3=RA and may record ratings with respect to following
itemsF attendance, self e;pression, team work, leadership, initiative, technical aility, reasoning aility, originality and
resourcefulness etc. "he system is highly secretive and confidential. -eedack to the assessee is given only in case of an
adverse entry. (isadvantage is that it is highly su!ective and ratings can e manipulated ecause the evaluations are
linked to HR actions like promotions etc.
*<. Ess$ Met2o-: 'n this method the rater writes down the employee description in detail within a numer of road
categories like, overall impression of performance, promoteaility of employee, e;isting capailities and qualifications of
performing !os, strengths and weaknesses and training needs of the employee. 3dvantage # 't is e;tremely useful in filing
information gaps aout the employees that often occur in a etter)structured checklist. (isadvantages # 't its highly
dependent upon the writing skills of rater and most of them are not good writers. "hey may get confused success depends
on the memory power of raters.
**. Cost A##o%ntin! Met2o-: Here performance is evaluated from the monetary returns yields to his or her organization.
=ost to keep employee, and enefit the organization derives is ascertained. Hence it is more dependent upon cost and
enefit analysis.
*+. Comprti)e E)l%tion Met2o- .Rn1in! " Pire- Comprisons0: "hese are collection of different methods that
compare performance with that of other co)workers. "he usual techniques used may e ranking methods and paired
comparison method.
Ran+ing Met*ods: Superior ranks his worker ased on merit, from est to worst. However how est and
why est are not elaorated in this method. 't is easy to administer and e;planation.
&aired )omparison Met*ods: 'n this method each employee is rated with another employee in the form of
pairs. "he numer of comparisons may e calculated with the help of a formula as under.
H ; @H)*A G +
F%t%re Oriente- Met2o-s
*. Mn!ement D$ O&(e#ti)es: 't means management y o!ectives and the performance is rated against the
achievement of o!ectives stated y the management. M.% process goes as under.
9stalish goals and desired outcomes for each suordinate
Setting performance standards
=omparison of actual goals with goals attained y the employee
9stalish new goals and new strategies for goals not achieved in previous year.
3dvantage # 't is more useful for managerial positions.
(isadvantages # Hot applicale to all !os, allocation of merit pay may result in setting short)term goals rather than
important and long)term goals etc.
2<
+. Ps$#2olo!i#l Apprisls: "hese appraisals are more directed to assess employees potential for future performance
rather than the past one. 't is done in the form of in)depth interviews, psychological tests, and discussion with supervisors
and review of other evaluations. 't is more focused on employees emotional, intellectual, and motivational and other
personal characteristics affecting his performance. "his approach is slow and costly and may e useful for right young
memers who may have considerale potential. However quality of these appraisals largely depend upon the skills of
psychologists who perform the evaluation.
,. Assessment Centers: "his technique was first developed in ?S3 and ?Q in *:4,. 3n assessment center is a central
location where managers may come together to have their participation in !o related e;ercises evaluated y trained
oservers. 't is more focused on oservation of ehaviors across a series of select e;ercises or work samples. 3ssessees
are requested to participate in in)asket e;ercises, work groups, computer simulations, role playing and other similar
activities which require same attriutes for successful performance in actual !o. "he characteristics assessed in
assessment center can e assertiveness, persuasive aility, communicating aility, planning and organizational aility, self
confidence, resistance to stress, energy level, decision making, sensitivity to feelings, administrative aility, creativity and
mental alertness etc. (isadvantages # =osts of employees traveling and lodging, psychologists, ratings strongly influenced
y assessee&s inter)personal skills. Solid performers may feel suffocated in simulated situations. "hose who are not selected
for this also may get affected.
A-)nt!es # well)conducted assessment center can achieve etter forecasts of future performance and progress than
other methods of appraisals. 3lso reliaility, content validity and predictive aility are said to e high in assessment
centers. "he tests also make sure that the wrong people are not hired or promoted. -inally it clearly defines the criteria for
selection and promotion.
4. 37G-De!ree Fee-&#1: 't is a technique which is systematic collection of performance data on an individual group,
derived from a numer of stakeholders like immediate supervisors, team memers, customers, peers and self. 'n fact
anyone who has useful information on how an employee does a !o may e one of the appraisers. "his technique is highly
useful in terms of roader perspective, greater self)development and multi)source feedack is useful. ,7<)degree
appraisals are useful to measure inter)personal skills, customer satisfaction and team uilding skills. However on the
negative side, receiving feedack from multiple sources can e intimidating, threatening etc. Multiple raters may e less
adept at providing alanced and o!ective feedack.
Et2i#s of Performn#e Apprisls = 4e!ll$ -efensi&le Performn#e Apprisls
Et2i#s of Pro#e-%res
*. -ormal Standardized 1erformance 3ppraisal Systems
+. ?niform to all employees, no illegal differentiations ased on cast, religion etc.
,. Standards formally communicated to all employees
4. -reedom to review performance appraisal results
6. -ormal appeal process aout ratings and !udgments
7. >ritten instructions and training to raters
/. 3ll personal decision makers should e aware of anti)discrimination laws.
Et2i#s of Contents
*. =ontent ased on !o analysis
+. "raits ased appraisals should e avoided
,. %!ectively verifiale data should e used
4. =onstraints on performance eyond control should e prevented
6. Specific !o related dimensions to e used rather than single or gloal dimensions.
7. (imensions must e assigned weight to reflect relative importance in performance score
Et2i#s of Do#%menttion of Res%lts
*. 3 thoroughly written record of evidence leading to termination should e maintained
+. >ritten documentation of e;treme ratings should e maintained
,. (ocumentation should e consistent among the raters.
Et2i#s of Rters
*. "he raters should e trained in how to use an appraisal system
+. "he rater must have opportunity to oserve ratees first hand and review important ratee performance products.
,. ?se of more than one rater is desirale to reduce iases.
Or!ni*tionl '%pport F#tors for Performn#e Apprisl '$stems
1erformance appraisal serves many organizational o!ectives and goals. .esides encouraging high level of performance, the
evaluation system is useful in identifying employees with potential, rewarding them equitaly, and determining employee
needs for development. 3ll these activities are instrumental in achieving corporate plans and long)term growth, typical
appraisal system in most organizations have een focused on short)term goals only.
-rom the strategic management point of views, organizations can e grouped under , different categories as defenders,
prospectors and analyzers.
Defen-ers: "hey have narrow and stale product market domain. "hey don&t need to make any ad!ustment in technology,
structure or methods of operations etc. "hey devote entire attention on improving e;isting operations. .ecause of emphasis
on skill uilding successful defenders use appraisals as means for identifying training needs. 't is more ehavior oriented.
Prospe#tors: "hey continuously search for new products and opportunities. "hey e;periment regularly to new and
emerging trends. "hey more focus on skills identification and acquisition of human resources from e;ternal sources
prospectors often use appraisals for identifying staffing needs. "he focus is on results.
Anl$*ers: "hey operate in two type of product domain markets. %ne is stale and other is changing. "hey watch their
competitors closely and rapidly adopt the ideas that are promising. "hey use cost effective technologies for stale products
and matri; technologies for new products. 3nalyzers tend to emphasize on skills uilding and skills acquisitions and employ
e;tensive training programs. Hence they use appraisal more for training and staffing purposes.
However performance appraisal systems has strategic importance in three different ways.
Fee-&#1 Me#2nism: 1erformance evaluation is the central mechanism that not only provides feedack to individuals
ut also aids in the assessment of the progress of organization as a whole. >ithout appraisals managers of any firm can
only guess as to whether or not employees are working towards realization of the organization goals.
Consisten#$ &et3een strte!$ n- (o& &e2)ior: 1erformance appraisal not only is a means of knowing if the
employee ehavior is consistent with the overall strategies focus ut also a way of ringing to the fore any negative
consequence of the strategy # ehavior fit. "hus the performance appraisal system is an important mechanism to elicit
feedack on the consistency of the strategy # ehavior link.
Consisten#$ &et3een 9l%es n- @o& De2)ior lin1: 1erformance evaluation is a mechanism to reinforce values and
culture of the organization. 3nother importance is to align appraisal with organizational culture.
2?
"hus the purpose of performance evaluation is to make sure that employee&s goals, employees ehavior and feedack of
information aout performance are all linked to the corporate strategy.
Essentils of Goo- Performn#e Apprisl '$stem:
*. Standardized 1erformance 3ppraisal System
+. ?niformity of appraisals
,. (efined performance standards
4. "rained Raters
6. ?se of relevant rating tools or methods
7. Should e ased on !o analysis
/. ?se of o!ectively verifiale data
8. 3void rating prolems like halo effect, central tendency, leniency, severity etc.
:. =onsistent (ocumentations maintained
*<. Ho room for discrimination ased on cast, creed, race, religion, region etc.
Pro&lems of Rtin!:
*. 0eniency 5 Severity
+. =entral "endency
,. Halo 9rror
4. Rater 9ffect
6. 1rimacy 5 Recency 9ffect
7. 1erceptual Sets
/. 1erformance (imensions %rder
8. Spillover 9ffects
:. Status 9ffect
INCENTIES .ASED COMPENSATION
'ncentives are monetary enefits paid to workmen in recognition of their outstanding performance. "hey are defined as
variale rewards granted according to variations in the achievement of specific results.
A-)nt!es of In#enti)e &se- #ompenstions
*. 'ncentives are important for inducement and motivation of workers for higher efficiency and greater output.
+. 9mployee earnings go up
,. 9nhanced standard of livings of employees
4. Reduction in total unit cost of production,
6. 1roductivity increases.
7. 1roduction capacity is also likely to increase
/. Reduced supervision
Dis-)nt!es of In#enti)e &se- #ompenstion
*. "endency of quality of products deteriorated due to increased output and low cost
+. 9mployees may oppose introduction of new machines
,. >orkers demand for minimum wage limit may go up due to high incentive earnings
4. Sometimes employees may disregard security regulations due to payment y results approach adopted for higher
incentive figures
6. %verworking may affect employee health
7. 9mployee !ealousies with respect to high and low performers
HUMAN RESOURCE AUDIT
Nt%re of HR A%-it
HR 3udit is a tool for evaluating the personnel activities of an organization. "he audit may include one division or entire
company. 't gives feedack aout HR functions to operating managers and HR specialists. 't also shows how well managers
are meeting HR duties.
'n short HR audit is an overall control check on HR activities in a division or a company and evaluation of how these
activities support organization&s strategy.
Dsis of HR A%-it
.Personnel Reser#20
*. >age Surveys
+. Recruitment Sources effectiveness
,. "raining efforts effectiveness
4. Supervisor&s effectiveness
6. 'ndustrial settlements
7. 2o 3nalysis
/. 2o Satisfaction Survey
8. 9mployee needs survey
:. 3ttitude Surveys
*<. High accident frequency surveys
Denefits of HR A%-it
*. 'dentification of contriutions of HR department
+. 'mprovement of professional image of HR department
,. 9ncouragement of greater responsiility and professionalism among HR memers
4. =larification of HR duties and responsiilities
6. Stimulation of uniformity of HR policies and practices
7. -inding critical personnel prolems
/. 9nsuring timely compliance with legal requirements
8. Reduction of HR costs through more effective personnel procedures
:. =reation of increased acceptance of changes in HR department
*<. 3 thorough review of HR information systems
'#ope n- /$pes of HR A%-it
HR 3udit must cover the activities of the department and e;tend eyond ecause the people prolems are not confined to
HR department alone. .ased on this HR audit can e spread across following four different categories.
Human Resource -unction 3udit
Managerial =ompliance 3udit
27
Human Resource =limate 3udit
9mployee "urnover
3senteeism
3ccidents
3ttitude Surveys
HR ) =orporate Strategy 3udit
Appro#2es to HR A%-it
*. =omparative 3pproach @.enchmarking with another companyA
+. %utside 3uthority 3pproach @%utside consultants& standardsA
,. Statistical 3pproach @Statistical measures and toolsA
4. =ompliance 3pproach @0egal and company policiesA
0' Management )y O#&ecti%es Approach 8Goals 9 O#&ecti%es #ased:
MOTIATION THEORIES
1erformance is a function of aility and motivation. 1 O f @3 ; MA
Definition 1: #hoices among voluntary activities
3 process governing choices made y persons or lower organisms among alternative forms of voluntary activity
Definition 2: Arouse enthusiasm to pursue
3 result of internal and e;ternal processes to the individual that arouse enthusiasm and persistence to pursue a certain
course of action
Definition 3: Need that activates behavior
3 process that starts with a physiological deficiency or need that activates ehavior or a drive that is aimed at a goal or an
incentive.
Menin! of Moti)tion
Motivation is a set of forces that cause people to ehave in certain ways.
Moti)tion Pro#ess .7 'teps0
*. 'ndividual Heeds
+. Search for ways to satisfy needs
,. Boal 5 %!ectives directed
4. 'ncreased performance
6. Receiving rewards or punishment
7. Reassessment of needs
Criti#lit$ of Moti)tion to Mn!ers
Importn#e of Moti)tion
Motivation helps employees find new ways of doing a !o
Motivation makes employees quality conscious
Motivation increases productivity very high
Motivation stimulates oth participation and production at work
Motivation comprehends !os related ehaviors
Motivation increases attention towards human resources along with physical resources
C2llen!es of Moti)tion
(iverse and changing workforce
Rightsizing, (ownsizing, Hire)n)-ire, 1ay)for)1erformance strategies
Motives can only e inferred, not seen
(ynamic nature of human needs
O&(e#ti)es of Moti)tion
High productivity
'ncrease quality consciousness
Stimulate participation at work
/2eories of Moti)tion
Erl$ /2eories
'#ientifi# Mn!ement: Motivation y scientific management is associated with -.>. "aylor&s techniques of scientific
management. "aylor said that people are primarily motivated y economic rewards and will take direction if offered an
opportunity to improve their economic positions. .ased on this "aylor descried following arguments
1hysical work could e scientifically studied to determine optimal method of performance of a !o
>orkers could e more efficient y telling them how they were to do a !o
>orkers would accept the aove prescription if paid on differentiated piecework asis
(isadvantages # (ehumanized workers, treated them as mere factors of production, only stressed on monetary
needs, ignored human needs
H%mn Reltions Mo-el: 9lton Mayo&s human relations model stressed on social contacts as motivational factor. Breater
importance was given to informal groups. However too much reliance on social contacts to improve productivity was a
ma!or drawack.
Contemporr$ /2eories
Content /2eories @Maslow&s Heed Hierarchy, Herzerg&s +)factors, 3lderfer&s 9RB, 3chievement Motivation "heoryA
Pro#ess /2eories @Lroom&s e;pectancy, 3dam&s 9quity, 1orter&s 1erformance and Satisfaction ModelA
Reinfor#ement #te!ories
ERG /2eor$ .Al-erfer0: E+isten#e Relte-ness Gro3t2
9RB theory emphasizes more on three road needs that is e;istence, relatedness and growth. 'ts hypothesis is that there
may e more than one need operating at the same time. 9RB theory further states that when a higher level need is
frustrating, the individual&s desire to increase lower level needs takes place. "hus 9RB theory contains frustration)
regression dimension. -rustration at higher level need may lead to regression at lower level need.
A-)nt!es # More consistent with our knowledge of differences among people, it is less restrictive and limiting, it is a
valid version of need hierarchy.
Dis-)nt!es # Ho clear)cut guideline of individual ehavior patterns, too early to pass a !udgment on the overall
validity of the theory.
/3o-F#tor /2eor$ .Her*&er!0
-redrick Herzerg states that the motivation concept is generally driven y two factors of motivators of !o satisfactions
and hygiene factors aout !o dissatisfaction. Motivators are generally achievement, recognition, the work itself,
2,
responsiility, advancement and growth, which are related to !o satisfaction. Hygiene factors deal with e;ternal factors
like company policy, supervision, administration and working conditions, salary, status, security and interpersonal relations.
"hese factors are known as hygiene factors or !o dissatisfiers, !o conte;t factors.
A-)nt!es # tremendous impact on stimulating thought on motivation at work, increased understanding of role of
motivation, specific attention to improve motivational levels, !o design technique of !o enrichment is contriution of
herzerg, doule dimensions of two factors are easy to interpret and understand.
Dis-)nt!es # 0imited y its methodology, reliaility questioned, it focuses more on !o satisfaction not on motivation,
no overall measure of satisfaction utilized, inconsistent with previous research, productivity factor ignored.
MORA!E
Definition 1: )ental condition, attitude, willingness
Morale is a mental condition or attitude of individual and groups, which determines their willingness to co)operate.
Definition 2: Attitudes, voluntary cooperation
Morale is attitudes of individuals and groups towards their work environment and towards voluntary cooperation to the full
e;tent of their aility in the est possile interest of the organization.
(istinction etween Morale and MotivationD )
Morle Moti)tion
*. =omposite of feelings, attitudes and sentiments
that contriute towards general satisfaction at
workplace.
+. 3 -unction of freedom or restraint towards
some goal.
,. 't moilizes sentiments.
4. Morale reflects Motivation.
*. Motivation moves person to action.
+. 3 1rocess of stimulating individuals into action
to accomplish desired goals.
,. 3 -unction of drives and needs.
4. 't moilizes energy.
6. Motivation is a potential to develop morale.
Importn#e of Morle s Responsi&ilit$ of Mn!ement
Or!ni*tion Climte: Morale is an important part of organization climate.
Attit%-es " 'entiments: Morale reflects attitudes and sentiments towards organization goals and o!ectives.
Pro-%#ti)it$: Morale highly affects productivity and satisfaction of individuals.
/otl 'tisf#tion: Morale is total satisfaction derived from employees !o, oss and his organization.
4&or Pro&lems 'ol)e-: High morale assists managers to overcome several laor prolems like laor turnover,
asenteeism, indiscipline, grievances, disharmony etc.
Coopertion: Morale helps to seek cooperation from the workers in getting higher production at minimum possile
cost y reducing wastages of time, man, machines and materials.
Pro-%#tion " Pro-%#ti)it$: 1roduction and productivity are directly affected y high morale in a positive manner.
PERSONNE! PO!ICIES
Menin! of Personnel Poli#$
3 1olicy is a 1lan of 3ction. 't is a statement of intentions committing the management to a general course of action. 3
1olicy may contain philosophy and principles as well. However a policy statement is more specific and commits the
management to a definite course of action.
Hence 1ersonnel policy is a plan of action to e implemented y HR department towards the organization and employees. 3
personnel policy spells out asic needs of the employees. "hrough personnel policy the personnel department ensure a
consistent treatment to all personnel y minimizing favoritism and discrimination. 1ersonnel policy serves as a standard of
performance for all employees. Sound personnel policies help uild employee motivation and loyalty. 3nd this happens
when personnel policies reflect fair play and !ustice and help people grow within the organization. 1ersonnel policies are
also plans of action to resolve intra)personal, inter)personal and inter)group conflicts.
Importn#e of Personnel Poli#$
1ersonnel policy is very important for an organization since it gives several enefits for managing your human resources
effectively. 'n the light of these enefits listed elow we would e ale to understand the relative importance of 1ersonnel
policy.
Dsi# Nee-s: 1ersonnel policy helps the management to think deeply aout asic needs of organization and the
employees.
Consistent /retment: 1ersonnel policies ensure consistent treatment of all personnel throughout the organization.
Minimi*e F)oritism: 1ersonnel policies help minimize favoritism and discrimination
Contin%o%s #tionD 1ersonnel policies ensure continuous action even if top management is changed. "hese policies
promote staility.
'tn-r- of Performn#e: 1ersonnel policies serve as a standard of performance.
Moti)tion " 4o$lt$: 1ersonnel policies help uild employee motivation and loyalty.
Fir Pl$ " @%sti#e: 1ersonnel policies reflect estalished principles of fair play and !ustice.
Gro3t2: 1ersonnel policies help people grow within the organization.
2OR3ERS7 PARTICIPATION IN MANAGEMENT
.roadly, worker&s participation in management means associating representatives of workers at every stage of decision)
making. 1articipative management is considered as a process y which the worker&s share in decision)making e;tends
eyond the decisions that are implicit in the specific content of the !os they do. "his amounts to the workers having a
share in the reaching of final managerial decisions in an enterprise.
Definition 1: Association of 2or'ers in decision4ma'ing process
>orkers& participation may e taken to cover all terms of association of workers and their representatives with the decision)
making process, ranging from e;change of information, consultations, decisions and negotiations to more institutionalized
forms such as the presence of the workers& memers on management or supervisory oards or even management y
workers themselves.
'#ope of 3or1ersO prti#iption
Scope of workers participation ranges over three managerial decision)making stages.
'o#il De#isions: Hours of work, welfare measures, work rules, safety, health, sanitation and noise control.
Personnel De#isions: Recruitment and selection, promotions and transfers, grievance settlements, work distriution
E#onomi# De#isions: Methods of manufacturing, automation, lay offs, shut)downs, mergers and acquisitions and other
financial aspects.
Met2o-s of 6or1ersO Prti#iption in Mn!ement
2C
*. .oard 0evel
+. %wnership
,. =omplete =ontrol
4. Staff =ouncils
6. 2oint =ouncils
7. =ollective .argaining
/. 2o 9nlargement and 9nrichment
8. Suggestion Schemes
:. Iuality =ircles
*<. 9mpowered "eams
**. "otal Iuality Management
*+. -inancial 1articipation
PrereA%isites of '%##essf%l Prti#iption
*. =learly defined and complementary %!ectives
+. -ree flow of information and communication
,. Representatives of workers from workers themselves
4. %utside trade union participation should e avoided
6. >orkers& education and training
7. Ho threat y participation
/. 3ssociation at all levels of decision)making
Denefits of Prti#iption
*. Bives identity to an employee
+. Motivates employee
,. Self)esteem, !o satisfaction and cooperation improves
4. Reduced conflicts and stress
6. More commitment to goals
7. 0ess resistance to change
/. 0ess laor prolems
8. .etter quality suggestions e;pected
UNIONS
9mployee associations are popularly known as unions. However these unions are not confined to only strikes and
negotiations. "heir role is much wider than this. ?nions make their presence felt in recruitment and selection, promotions,
training, termination or lay off. Many programs, which contriute to the Iuality of >ork 0ife @I>0A and productivity, are
undertaken y management in consultation with and with the cooperation of the unions. ?nions also participate in deciding
wage and salary structure and negotiate revisions once in , or 6 years.
"rade unions are voluntary organizations of workers or employers formed to promote their interests through collective
action. "rade unions 3ct *:+7 defines a trade union as a comination, whether temporary or permanent formed primarily
for the purpose of regulating the relation etween
*A >orkmen and 9mployers
+A >orkmen and >orkmen
,A 9mployers and 9mployers
-or imposing restrictive conditions on the conduct of any trade or usiness and includes any federation of two or more
trade unions
62$ -o emplo$ees (oin /r-e >nions:
"o protect themselves against e;ploitation y management
.y force
(issatisfaction
0ack of 1ower
?nion 'nstrumentality
RO4E OF CON'/R>C/I9E AND PO'I/I9E >NION
?nions have a crucial role to play in 'ndustrial Relations. ?nions have following road role or o!ectives as mentioned
elow.
"o redress the argaining advantage of the individual worker vis)R)vis the individual employer, y sustituting
!oint or collective action for individual action.
"o secure improved terms and conditions of employment for its memers and the ma;imum degree of security to
en!oy these terms and conditions.
"o otain improved status for the worker in his work or her work
"o increase the e;tent to which unions can e;ercise democratic control over decisions, which affect their interests
y power sharing at the national, corporate and plant levels.
"he union power is e;erted primarily at two levels. 'ndustry level to estalish !oint regulation on asic wages and hours
with an employer&s association. 1lant level, where the shop stewards organizations e;ercise !oint control over some aspects
of the organization of work and localized terms and conditions of employment.
?nions are party to national, local and plant level agreements, which govern their actions to a greater or lesser e;tent,
depending on their power and on local circumstances.
>NFAIR 4ADOR PRAC/ICE'
'ndustrial (isputes 3ct *:4/ specifies the following as unfair laor practices
"o interfere, restrain, coerce workmen in the e;ercise of their right to organize, form, !oin or assist a trade union.
"hreatening workmen with discharge or dismissal
"hreatening of lockout or closure
Branting wage increases to undermine trade union efforts
"o dominate, interfere with or support financially or socially y taking active interest in forming own trade union,
and
Showing partiality or granting favor to one of several trade unions to a non)recognized trade union
"o estalish employer sponsored trade unions
2E
"o encourage or discourage memerships in any trade union y discriminating workman y punishing or
discharging, changing seniority ratings, refuse promotions, giving unmerited promotions, discharging union office
earers
"o discharge or dismiss workmen y victimizing, not in good faith, implicating in criminal case, for patently false
reasons
"o aolish work of a regular nature
"o transfer workmen
"o show favoritism or partiality
"o replace workers
"o recruit workmen during legal strikes
"o indulge in acts of violence or force
"o refuse collective argaining
4roposing and contin"ing loc3o"ts
ORGANI8ATIONA! DO2NSI8ING
(ownsizing necessarily means reducing work force to an optimal level depending upon the usiness conditions and
organizational needs. 't is said that an organization should e rightly staffed ie. 't should not e overstaffed and or
understaffed. "here are roadly following method used to downsize the workforce as mentioned elow.
Retren#2ment:
't means termination of service. 't is a termination for reasons other than disciplinary actions, retirement or
superannuating, e;piry and termination of contract or prolonged illness. Retrenchment compensation and notice for
retrenchment are only pre)conditions for retrenchment and not a right, which a retrenched worker can claim. 'f notice and
compensation are not given, the worker will not e called as retrenched. =ompensation is payale for *6 days wages for
every completed year of service esides one month&s notice or pay in lieu of notice. .ut employee should have completed
at least one year of complete service in order to receive compensation.
4$ Offs
0ay of is inaility of the employer to provide employment to workers due to circumstances eyond his control such as
shortage of power, coal, reakdown of machinery, natural calamity etc. 't is not a termination of service. 0ay off
compensation can e claimed as a statutory right y the worker if he has completed one year of continuous service or has
worked for +4< days on the surface or *:< days underground in *+ calendar months. =ompensation payale is half of the
wages.
9ol%ntr$ Retirement '#2emes
LRS are announced when there is a huge pool of old aged manpower occupying senior positions amounting to surplus.
Many organizations are providing lieral incentives to leave efore age of superannuating. LRS in other words is a
retirement efore the age of retirement.
MEANING O/ ORGANI8ATION STRUCTUREOr$ani9ational str)ct)re is t*e 'or(al &ecision-(a5in$ 'ra(e:or5 b1 :*ic* job tas5s are
&ivi&e&+ $ro)%e&+ an& coor&inate&, /or(ali9ation is an i(%ortant as%ect o' str)ct)re, It is t*e e;tent to :*ic* t*e )nits o' t*e or$ani9ation
are e;%licitl1 &e'ine& an& its %olicies+ %roce&)res+ an& $oals are clearl1 state&, It is t*e o''icial or$ani9ational str)ct)re conceive& an& b)ilt
b1 to% (ana$e(ent, T*e 'or(al or$ani9ation can be seen an& re%resente& in c*art 'or(, An or$ani9ation c*art &is%la1s t*e or$ani9ational
str)ct)re an& s*o:s job titles+ lines o' a)t*orit1+ an& relations*i%s bet:een &e%art(ents,
Or!nistion C2rts:
"he organization charts are the sample and an understandale way showing the formal organization structure)'t gives a
clear overview of the shape and structure of an organization.
't is an order and the design of an organization captured in a visual form.
't is a lue print or a asis for proper conceptualization, further thinking, a discussion oard for further modifications
without affecting the actual changes.
"he organization chart well drawn, can give an insight in to the organization, its hierarchical structure line and staff
authority, authority and responsiility levels, chain of command, line of delegated authority, decentralization or otherwise
in an organization, span of control etc.
't also helps and guides the management in evolving changes with the changes in the environment and for faster
realization of goals.
)t is a oo$ %i$e #o! the ne- !ec!%its in thei! initiation in the o!ani(ation an$ in %n$e!stan$in the a%tho!ity !esponsi'ility levels incl%$in his o-n.
Forml Or!nistion
T*e intentional str)ct)re o' roles in a 'or(all1 or$anise& enter%rise is a 'or(al or$anisation
+t sho"ld ha%e an attri#"te of fle7i#ility2 room for discretion and the recognition of indi%id"al talents and the capacities' +n a gro"p f"nctioning
the indi%id"al effort 5ill ha%e to #e chaneli$e thro"gh the gro"p leader and has to #e for the organi$ation;s good'
In$"r)al S!ru!ure
The informal organi$ation is the net5or32 "nrelated to the firm<s formal a"thority str"ct"re2 of social interactions among its employees' +t is the
personal and social relationships that arise spontaneo"sly as people associate 5ith one another in the 5or3 en%ironment' The s"per%isor
m"st reali$e that the informal organi$ation affects the formal organi$ation' The informal organi$ation can press"re gro"p mem#ers to conform
to the e7pectations of the informal gro"p that conflict 5ith those of the formal organi$ation' This can res"lt in the generation of false
information or r"mors and resistance to change desired #y management' The s"per%isor sho"ld recogni$e the e7istence of information
gro"ps2 identify the roles mem#er play 5ithin these gro"ps2 and "se 3no5ledge of the gro"ps to 5or3 effecti%ely 5ith them' The informal
organi$ation can ma3e the formal organi$ation more effecti%e #y pro%iding s"pport to management2 sta#ility to the en%ironment2 and "sef"l
comm"nication channels' Mtri+ 'tr%#t%re'n a matri; organization, teams are formed and team memers report to two or
more managers. Mtri+ str%#t%res utilize functional and divisional chains of command simultaneously in the same part of
the organization, commonly for one)of)a)kind pro!ects. 't is used to develop a new product, to ensure the continuing
success of a product to which several departments directly contriute, and to solve a difficult prolem. .y superimposing a
pro!ect structure upon the functional structure, a matri; organization is formed that allows the organization to take
advantage of new opportunities. "his structure assigns specialists from different functional departments to work on one or
more pro!ects eing led y pro!ect managers. "he matri; concept facilitates working on concurrent pro!ects y creating a
dual chain of command, the pro!ect @program, systems, or productA manager and the functional manager. 1ro!ect
managers have authority over activities geared toward achieving organizational goals while functional managers have
authority over promotion decisions and performance reviews. 3n e;ample is an aerospace firm with a contract from H3S3.
7i.i#i"nal S!ru!ure
+n a *i.i#i"nal "rgani(a!i"n2 corporate di%isions operate as relati%ely a"tonomo"s #"sinesses "nder the larger
corporate "m#rella' +n a conglomerate organi$ation2 di%isions may #e "nrelated' 6i%isional str"ct"res are made
"p of self/contained strategic #"siness "nits that each prod"ces a single prod"ct' -or e7ample2 Beneral Motors<
di%isions incl"de =hevrolet2 %ldsmoile2 1ontiac2 and =adillac' A central head!"arters2 foc"sing or res"lts2
3G
coordinates and controls the acti%ities2 and pro%ides s"pport ser%ices #et5een di%isions' -"nctional departments
accomplish di%ision goals' A 5ea3ness ho5e%er2 is the tendency to d"plicate acti%ities among di%isions'
Or!ni# 'tr%#t%re%n the other hand, the organic structure is more fle;ile, more adaptale to a
participative form of management, and less concerned with a clearly defined structure. "he organic
organization is open to the environment in order to capitalize upon new opportunities. %rganic
organizations have a flat structure with only one or two levels of management. Flt
or!ni*tions emphasize a decentralized approach to management that encourage high
employee involvement in decisions. "he purpose of this structure is to create independent small
usinesses or enterprises that can rapidly respond to customersE needs or changes in the usiness
environment. "he supervisor tends to have a more personal relationship with his or her
employees. F%n#tionl 'tr%#t%re-unctions or divisions arrange traditional organizations. 'n a
f%n#tionl or!ni*tion, authority is determined y the relationships etween group functions
and activities. -unctional structures group similar or related occupational specialties or processes
together under the familiar headings of finance, manufacturing, marketing, accounts receivale,
research, surgery, and photo finishing. 9conomy is achieved through specialization. However, the
organization risks losing sight of its overall interests as different departments pursue their own
goals.
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