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HRM is a management function that helps organisation to recruit, select, train, develop and manage its members. Simply stated, HRM is all about management of people in the organisation from Recruitment to Retirement. HRM refers to set of programs, functions, and activities designed and carried out in order to maximise both employee as well as organisational effectiveness. Definition 1 “HRM is 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 objectives are accomplished.” Definition 2 “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 objectives. This is true, regardless of the type of the organization – government, business, education, health, recreational, or social action.”

1. Organizational Objectives: To assist the organization to achieve its primary objectives, whether it is profit making or charity or social agenda. 2. Societal Objectives: To be responsive to the needs and challenges of the society while minimizing the negative impact, if any, of such demands upon the organization. 3. Functional Objectives : To maintain department’s contribution and level of services at a level appropriate to the organization’s needs. 4. Personal Objectives: To assist employees in achieving their personal goals, at least in so far as these goals enhance the individual’s contribution to the organization. This is necessary to maintain employee performance and satisfaction for the purpose of maintaining, retaining and motivating the employees in the organization.


From Entry to Exit or Recruitment to Retirement of an employee in the organization Following are the areas of operation of HRM: 1. Human Resource Planning 2. Job Analysis 3. Job Design 4. Recruitment & Selection 5. Orientation & Placement 6. Training & Development 7. Performance Appraisals 8. Job Evaluation 9. Employee and Executive Remuneration 10. Motivation 11. Communication 12. Welfare 13. Safety & Health 14. Industrial Relations Based on the above activities, we can summarize the scope of HRM into following seven different categories: 1. Introduction to HRM 2. Employee Hiring 3. Employee and Executive Remuneration 4. Employee Motivation 5. Employee Maintenance 6. Industrial Relations 7. Prospects of HRM

health. Counsellor: Consultations to employees about marital. Personnel Procedures: Relating to manpower planning procedures.ROLE OF HRM 1. (b) 2. These services constitute the main activities carried out by personnel department. etc. Personnel Policies: Organization Structure. 3. ROLE OF HR MANAGERS 1. Change Agent: Introducing and implementing institutional changes and installing organizational development programs 7. 2. Compensation. 4. disciplinary actions. Social Responsibility. conflicts between individuals and groups or management. performance appraisal procedures. industrial relations procedures and health and safety procedures. mental. and employment procedures. Training & Development and Industrial Relations. physical and career problems. Humanitarian Role: Reminding moral and ethical obligations to employees. It provides guidance to managers to help them ensure that agreed policies are implemented. recruitment and selection procedures. compensation procedures. and involve the implementation of the policies and procedures described above. Spokesman: To represent the company in Media and other forums because he has better overall picture of his company’s operations. 3. training procedures. personnel policies and procedures. Service Role: Personnel function provides personnel services. 5. Problem Solver: Solving problems of overall human resource management and long-term organizational planning. . 6. Career & Promotion. Mediator: Playing the role of a peacemaker during disputes. Management of Manpower Resources: Broadly concerned with leadership both in the group and individual relationships and labour-management relations. management development procedures. Functional Role: The personnel function formulates personnel policies in accordance with the company’s doctrine and management guidelines. (a) Advisory Role: HRM advises management on the solutions to any problems affecting people. Employment Terms & Conditions. like payroll.

Observations and comparisons of deviations OPERATIONAL FUNCTIONS OF HRM 1. Procurement: 2. labour market conditions. Recruitment and Selection. Controlling: Regulating personnel activities and policies according to plans. 3. Career planning and counselling.OBJECTIVES V/s FUNCTIONS OF HRM HRM Objectives Social Objectives (3) (a) (b) (c) (a) (b) (c) (d) (e) (f) (g) (a) (b) (c) (a) (b) (c) (d) (e) Supporting HRM Functions Legal Compliance Benefits Union Management Relations Human Resource Planning Employee Relations Recruitment & Selection Training & Development Performance Appraisals Placement & Orientation Employee Assessment Performance Appraisals Placement & Orientation Employee Assessment Training & Development Performance Appraisals Placement & Orientation Compensation Employee Assessment Organizational Objectives (7) Functional Objectives (3) Personal Objectives (5) MANAGERIAL FUNCTIONS OF HRM 1. union demands and other personnel benefits. Development. . Organizing: Organizing manpower for the achievement of organizational goals and objectives. Development: Planning. 5. 2. Directing: Issuance of orders and instructions. Induction and Placement Training. providing guidance and motivation to managers and employees. Planning: Research and plan about wage trends. Forecasting manpower needs etc. Staffing: Recruitment & Selection 4.

it has suddenly turned into employee’s market. retentions. New Organizational Forms: Exposure to international business and practices have led to change in the organisational structure and HR policies of the local companies. Integration: Integration of human resources with organization. and internal restructuring of organizations. Changing Demographics of Workforce: Changes in workforce are largely reflected by dual career couples. Maintenance: Sustaining and improving working conditions. From being an employer’s market.3. take overs. Globalisation and India’s growing stature in the world has seen demand for Indian managers soaring. there are following new issues: 1. employee communication Separations: Managing separations caused by resignations. 2. especially in the most crucial segment. Take for instance. The challenge for HRM is to cope with the implications of these new relations in place of well established hierarchical relationships that existed within the organizations for ages in the past. insecurities and fears. In addition. languages. CHALLENGES OF HRM IN INDIAN ECONOMY The job of HRM department in India has never been so challenging. Suddenly. terminations. Indian companies have begun to adopt flat hierarchical management structure. work ethics and more. Globalization: Growing internationalization of business and workforce has its impact on HRM in terms of problems of unfamiliar laws. lay offs. HR managers have a challenge to deal with more and more heterogeneous functions and more involvement in employee’s personal life. management styles. uncertainties. the hierarchical structure of Indian companies. But to implement and grout such fundamental changes in management philosophy of any company is never easy. From the state of plenty. Compensation: 5. joint ventures. Last decade has witnessed tectonic shift in Job market. The attrition rate has reached alarming proportions. In circumstances as dynamic and as uncertain as these. ie middle management. It has reached such proportions that certain segments of Industry are maintaining bench strengths to fill in the sudden gaps due to resignations. large chunk of young blood with contrasting ethos of . death. Wage and Salary determination and administration 4. Corporate Re-organizations: Liberalisation has led to largescale reorganization of businesses in terms of expansions. 6. attitudes. mergers and acquisitions. there is a stage of scarcity of the right talent. medical sickness etc. The biggest challenge is to retain the talent one has so assiduously hunted and trained. it is a challenge to manage employees’ anxiety. practices.

more educated and aware workers etc. Because society’s well being to a large extent depends on its organizations. and discover new methods of hiring. the problems faced by workforce now have different dimension for the management. they can not be lured with rosy promises. employees are demanding empowerment and equality with management. growing number of women in workforce. However. Traditional allurements like job security. attrition rate being highest for the junior and middle management level. house. Contribution to the Success of Organizations: The biggest challenge to an HR manager is to make all employees contribute to the success of the organization in an ethical and socially responsible way. In the name of global competition. training. New Industrial Relations Approach: In the changed industrial climate. 4. The dramatic increase of women workers. remunerating and motivating employees. The challenge of HRM is how to manage this tribe? 5. changing demography of workforce has its own implications for HR managers and a true challenge to handle. has resulted in the need for organizations to re-examine their policies. Armed with inside among old superannuating employees. often take up the new job. even trade unions have realised that strikes and militancy have lost their relevance and not many workers are willing to join them and disrupt work. However. They manifest in the form of increased attrition rate. Renewed People Focus: “Man behind the machine is most important than the machine”. and remunerations are not much attractive today. Changed Employee Expectations: With the changes in workforce demographics. They are in great demand too with growth in economy. Rather. this doctrine has begun to gain acceptance in the corporate world and thus all out efforts to grab the best talent at what ever cost. working mothers. Thus. It is a challenge of today’s HR managers to see that these weaker sections are neither denied their rightful jobs nor are discriminated while in service. Hence. the interests of the society around should not be sacrificed. These are the people who are most mobile. practices and values. Weaker Section’s Interests: Another challenge for HRM is to protect the interest of weaker sections of society. minorities and other backward communities in the workforce. The challenge before the HRM is find ways and means to feel the pulse of employees and address the issues on proactive basis. Managing the Managers: Managing the managers is most difficult. 3. productivity and quality. This is an old doctrine of the Armed Forces. employee expectations and attitudes have also transformed. coupled with weakening of trade unions. Unsatisfied employees instead of approaching the management for resolution. 6. it is a challenge for HRM to redesign the profile of workers. .

implementing and evaluating business strategies to achieve organizational objectives is called Strategic Management” Definition of Strategic Management “Strategic Management is that set of managerial decisions and actions that determine the long-term performance of a corporation. evaluation and control. Environmental Scanning: Analyze the Opportunities and Threats in External Environment 2. Provides an objective view of management problems. STEPS IN STRATEGIC MANAGEMENT 1.” The study of strategic management therefore emphasizes monitoring and evaluating environmental opportunities and threats in the light of a corporation’s strengths and weaknesses. strategy formulation. Strategy Formulation: Formulate Strategies to match Strengths and Weaknesses. Business Unit Level and Functional Level. Allows major decisions to better support established objectives . It includes environmental scanning. Minimizes the effects of adverse conditions and changes 5. 2. Strategy Implementation: Implement the Strategies 4. 3. 3. Represents framework for improved co-ordination and control 4. Allows identification.STRATEGIC HUMAN RESOURCE MANAGEMENT Strategy: “Strategy is a way of doing something. Evaluation & Control: Ensure the organizational objectives are met. It includes the formulation of goals and setting of action plans for accomplishment of that goal. prioritization and exploration of opportunities. It can be done at Corporate level.” Strategic Management: “A Process of formulating. IMPORTANCE & BENEFITS OF STRATEGIC MANAGEMENT 1. strategy implementation.

Avoids ad hoc decisions 8. Allows more effective allocation of time and resources 7. communicating goals and improving productivity and quality. elicit information about customer complaints. ROLE OF HRM IN STRATEGIC MANAGEMENT Role in Strategy Formulation: HRM is in a unique position to supply competitive intelligence that may be useful in strategy formulation. Role in Strategy Implementation: HR Manager helps strategy implementation by supplying competent people. Helps to integrate the individual behaviours 9. . Encourages forward thinking 10. Additionally. HRM facilitates strategy implementation by encouraging proactive thinking. can be provided by HRM. Unique HR capabilities serve as a driving force in strategy formulation. Details regarding advanced incentive plans used by competitors. opinion survey data from employees. information about pending legislation etc.6. Encourages favourable attitude towards change.

. Long-term growth can also be planned by creating highly inspired groups of employees with high aspirations to diversify around core competencies and to build new organizational responses for coping with change. Following strategic choices can be considered which would help today’s organizations to survive and grow. By using HRD strategies. maximization of efficiency and productivity could be achieved through qualitative growth of people. that is. skills and capabilities for better performance and higher productivity. Values: Adopt proactive HRD measures. proactive approach and experimentation. A proactive HRD strategy can implement plans directed at improving personal competence and productive potentials of human resources. which encourage values of trust. and easy job availability. autonomy. to seek preventive care in human relations. PROACTIVE HRD STRATEGIES FOR LONG TERM PLANNING AND GROWTH Like quoted earlier. Definition 2: HRD means to bring about the possibility of performance improvement and individual growth. employees have developed propensity to switch jobs for minor reasons without voicing their protest. With trade unions breathing their last. HRD has to take a proactive approach. employee retention has become bigger challenge than employee hiring today. Thus. Change Management: Manage change properly and become an effective change agent rather than being a victim of change itself. Definition 1: HRD is a process of enhancing the physical. mental and emotional capacities of individuals for productive work.HUMAN RESOURCE DEVELOPMENT Human Resource Development is a process to help people to acquire competencies and to increase their knowledge.

Maximize Productivity and Efficiency: Maximize productivity and efficiency of the organization by helping qualitative growth of people .

Harmony and trust among the team members 2. Clear communication channels Synergy among the team members is very important. how ever harmonious it may be. Teams can bring to bear a wider range of skills and experience to solve a problem. Teams Can be Very Effective. Decision making is a . Creativity and risk taking ability 6. The benefit of teams lie in Synergy which means – The whole is greater than sum of its parts. Harmony and trust among the group members is utmost essential. TEAM EFFECTIVENESS For a team to be effective. Effective decision making process 10. Ability to self-correct 8. Further. a team is able to produce more than the sum of individuals working separately. following are the prerequisites: 1. Effective leadership 3. A team benefits from complementing and some times contrasting abilities of its members. In any group.technical. Shared goals 4. members of team have an obligation to each other and thus there is a moral force/binding to perform.TEAM EFFECTIVENESS Definition: A team is a small group of people who agree to work together for achieving a clear and identifiable set of goals. Ability to resolve conflict 11. Teams often lead to better quality decisions as individual whims and prejudices are kept in check. Thus. problem solving and interpersonal skills 5. Diverse skills and experience . Freedom to voice views 7. The team needs a clear sense of direction which the leader provides. There has to be a well formulated policy for conflict management. conflicts are inevitable. Interdependent work 9.

A well charted course for decision taking will be able to minimise such conflicts. In addition. etc. how many people will be available. diversifications. injury. as the name suggests. termination. disability or resignations. Thus. Changes in the Business Environment in the past one and half decade have led to relative scarcity of talented people. HUMAN RESOURCE PLANNING (H R P) Human Resource Planning. must be done to ensure availability of personnel equals the demand at all times in the future. death. business model and plan. Each job needs specific skills and experience and only a certain trained personnel can do it effectively. it will help the company if the requirement is forecasted adequately in advance to enable hiring of right kind of personnel just in time so that neither the machines/other resource idle for want of manpower nor do the people idle. capable of effectively and efficiently completing those tasks that will help the organization achieve its overall objectives. and what. also generate need to review the human resource requirement of the organisation. it is necessary that right kinds of people are hired for each job. by which an organization ensures that it has the right number of right kind of people at the right place. there could be situations when there . termination. Right kinds of people are no more available at short notice.source of potential conflicts.” NEED & IMPORTANCE OF HRP Human Resource comes at a cost and generates profits. changes in the business environment. capacity/product changes. some times stretching between 6 months to one year. if anything. Having the people is not enough. Manpower wastages in the organisation keep taking place regularly due to retirement. Therefore.” Definition 2: “HRP is a Process. At the same time. etc. It is a continuous process either due to fresh requirement of manpower owing to change/growth/diversification of business or due to attrition of manpower due to retirement. Definition 1: “HRP includes estimation of how many qualified people are necessary to meet the future business requirement. Personnel requirement is never static. resignations. While excess of human resource will lead to unproductive costs. shortages of same will lead to idling of other resources and impede profit generation. is the process of identification/ forecasting a firm’s future requirement of type and number of people in order to meet the organisational goals and objectives. There is considerable time gap between identifying the need for manpower and filling the vacancy. at the right time.

Company may have changed over to a new technology productions and therefore all personnel trained in old machines may have become redundant and surplus. personnel development. • Business Environment • Overall Organization Objectives • Forecasting Manpower Needs • Assessing Manpower Supply • Matching Manpower Demand-Supply factors Based on these elements we can draw “HRP System Architecture” as under. selection. Large scale changes in frontline staff will have proportional changes in requirement of support staff as well which can be planned alongside. The “Exit Policy” for workers is not easy and they can not be released at short notice. HRP SYSTEM HRP System as such includes following elements or sets for planning. human capital is the most important asset. Re-training or retrenchment of personnel has to be planned in advance. Business Environment Organization Objectives & Goals Manpower Forecast Manpower Supply Assessment Manpower Programming Manpower Implementation Control & Manpower Evaluation Surplus Manpower Shortage of Manpower . training and development etc. In India services is growing at a fast pace. In service industry. HRP bears a disproportionate importance in this industry. Foundation of Personnel Functions : HRP provides for not only front line manpower but also caters for support staff requirement which are called Personnel “Functions” like spare manpower in the company. It has already overtaken agriculture and Industrial production sectors to become the biggest contributor to GDP.

Kind of people required would be dictated by technology being planned for expansion. company’s policies towards its manpower policies. HRP process will be dictated by following organisational policies: 1. Demand forecasting should be based on following factors. Continuous availability of adaptive and flexible workforce Manpower Demand Forecasting: It is the process of estimating the future quantity and quality of people required. Job enrichment issues 5. Gujarati companies in diamond business hire only gujaraties. • • • • • • • • • • Internal Factors: Production levels New products and services Organizational structure Employee separation Budget constraints External Factors: Economic climate Laws and regulatory bodies Technology changes Social Factors Legal requirements with regards to reservations . So. The basis should be long term corporate plans. Training & Development plans 3. Rightsizing organization 6. certain Business Houses from Rajasthan prefer Rajasthanies. In addition.HRP PROCESS Organizational Objectives & Policies: Organizational objectives and policies give a clue to future requirement of manpower. Similarly. like using internal resources for promotion or external resources or dependence on certain caste or region for some jobs have also to be catered for. A company planning expansion would require more manpower in near future. Union Constraints 4. HRP needs to align hiring of people with these elements. Automation needs 7. Internal Hiring or External Hiring? 2.

Of separations p.a. / Average employees p. Supply Analysis covers: Existing Human Resources: HR Audits facilitate analysis of existing employees with skills and abilities. absences) • Productivity level • Job movements (Job rotations or cross functional utilizations) External Supply Assessment: External sources are required for following reasons • New blood.a. changes in hours and other conditions of work. separations. Personal data Skills Special Qualifications Salary Job History Company data Capabilities Special preferences Management inventories would include the following: • Work History • Strengths • Weaknesses • Promotion Potential • Career Goals • Personal Data • Number and Types of Subordinates supervised • Total Budget Managed • Previous Management Duties Internal Supply Assessment: • Inflows and outflows (transfers.) • Absenteeism (leaves. internal movements and promotions. The existing employees can be categorized as skills inventories (non-managers) and managerial inventories (managers). resignations. overtime. X 100) • Conditions of work (working hours. • New experiences .) • Turnover rate (No. etc. • • • • • • • • Skill inventory would include the following. retirements etc. promotions.Manpower Supply Forecasting: This process measures the number of people likely to be available from within and outside the organization after making allowance for absenteeism. wastages.

3. For example in succession planning the key concern can be who will be next CEO or what will happen if the Marketing Manager retires in coming March. inclinations. There is little or no set back due to absence of key employee. Succession planning focuses on identification of future vacancies and locating the probable successor. Importance of Succession Planning 1. Organization gains stable workforce and low employee turnover. . Career planning is the process of identifying an individual’s strengths. CAREER PLANNING Career as a concept means a lifelong sequences of professional. aspirations and attitudes and designing his job responsibilities to take maximum advantages of positive traits and minimising the effect negatives traits. Succession planning involves identification of key positions in the company and then scouting for people who can effectively fill those positions at short notice. Succession planning helps create loyalty towards the organization and improved motivation and morale of individual employees. 6. consultants.• Replenish lost personnel • Organizational growth • Diversification External sources can be colleges and universities. It is a sequence of positions occupied by a person during his life. weaknesses. 5. Acts as a motivator for the individual employee who comes to know of the impending promotion in advance. aptitudes. Ultimately organization becomes successful in accomplishing its goals effectively. Succession planning helps when there is a sudden need due to job hopping/death of serious injury to a key employee. SUCCESSION PLANNING Meaning of Succession Planning Succession planning is the process or activities connected with the filling of key positions in the organization hierarchy as vacancies arise. 2. 4. Grooming a person to fill an important position may take years. competitors and unsolicited applications. educational and developmental experiences that an individual goes through in his working life.

It may also involve training at times to strengthen his weak areas. 4. Audit of existing executives and projection of likely future supply from internal and external sources.After identifying the personality traits of the individual begins the process of identifying suitable job billets for him. Career counselling undertaken in the context of a realistic understanding of the future needs of the firm as well as those of the individual. Career planning is a process of integrating the employees’ needs and aspirations with organizational requirements. 2. The actual activities by which openings are filled . Analysis of the demand for managers and professionals by company level. Planned strategic recruitment not only to fill short term needs but also to provide people for development to meet future needs 8. Performance related training and development to prepare individuals for future roles as well as current responsibilities 7. 6. 5. Accelerated promotions with development targeted against the future needs of the business. A typical succession planning involves the following activities: 1. function and skill. 3. Planning of individual career paths based on objective estimates of future needs and drawing on reliable performance appraisals and assessments of potential.

promotions. Job analysis helps in determining • Recruitment & Selection : Knowing the staffing needs is essential for Recruitment and Selection – Right person for each job. • . Job Analysis. Sourcing of recruits also becomes easy and cost effective Training & Development : Development programs. etc. Safety & Health : Job Analysis helps to uncover hazardous conditions and unhealthy environmental factors so that corrective measures can be taken to minimize and avoid possibility of human injury. i. quality and quantity. The immediate products of this analysis are ‘Job Description’ and ‘Job Specifications’. type.” Definition 2 “It is a basic technical procedure that is used to define duties and responsibilities and accountabilities of the job. Remuneration : jobs.JOB ANALYSIS Definition 1 “Job Analysis is a process of collecting and studying the information relating to operations and responsibilities of a specific job. Job analysis is the key to determining Training and • • Job Evaluation : Job evaluation means determination of relative worth of each job for the purpose of establishing wage and salary.” PURPOSE OF JOB ANALYSIS: • Human Resource Planning (HRP) : staffing needs.e. Job analysis also helps in determining wage and salary for the • • Performance Appraisal : Job analysis helps in fixing the bench marks of performance standards which in turn help in objective Performance appraisal. This is possible with the help of job description and specifications. rewards.

Principal duties and responsibilities . scope. It defines work assignment and a scope of responsibility that are sufficiently different from those of the other jobs to warrant a specific title. Job Summary 3. Definition of unusual terms Format of Job Description 1. Work hazards 8. Machines. tools and materials 6.JOB DESCRIPTION “Job Description implies objective listing of the job title. and responsibilities involved in a job. Objective 6. duties and responsibilities of a particular job. Department 4. responsibilities and organizational relationships that constitutes a given job or position. Reporting to (Operational and Managerial) 5. Job Title 2. Job description is a broad statement of purpose. Contents of Job Description 1. Region/Location 3. Work conditions 7. Job Identification 2.” Job description is a word picture of the duties. Supervision specification 5. tasks. Job Duties and Responsibilities 4.

Psychological characteristics 3. Thus. of job Essential Attributes Desirable Attributes Contra-Indicators – Attributes which are likely to act as impediments to success . Job specifications seek to indicate kind of persons who can be expected to meet the role requirements.JOB SPECIFICATIONS “Job Specification involves listing of qualifications. Demographic features Job specifications can be further divided into three broad categories 1. 3. it is a statement of minimum acceptable physical/psychological attributes and professional skills necessary to perform the job properly. Personal characteristics 4. Contents of Job Specifications 1.” In other words. screening and placement and is intended to serve as a guide in hiring. skills and abilities required in an employee to meet the job description. it is basically concerned with matters of selection. Educational Qualifications 5. Physical Characteristics 2. Skill Set and Experience/Responsibilities 6. 2. These specifications are minimum required to do the job satisfactorily.

A perception of inequity is a sure way of de-motivating an employee. This establishes Job Hierarchies. Ignoring this basic principle results in inequitable compensation and attendant ill effects on employees’ morale. Defining objectives of job evaluation (a) (b) (c) (d) (e) (f) Identify jobs to be evaluated (Benchmark jobs or all jobs) Who should evaluate job? What training do the evaluators need? How much time involved? What are the criteria for evaluation? Methods of evaluation to be used 2. Job Evaluation helps to determine wages and salary grades for all jobs. Establishing wage and salary differentials. Analytical Methods (a) Point Ranking Methods: Different factors are selected for different jobs with accompanying differences in degrees and points. Remuneration must be based on the relative worth of each job.JOB EVALUATION Job evaluation is the process of analyzing and assessing various jobs systematically to ascertain their relative worth in an organization. Employee Classification 4. Relative worth is determined mainly on the basis of Job Description and Job Specification only. . which becomes the basis for satisfactory wage differentials among various jobs. Wage Survey 3. Job Evaluation involves determination of relative worth of each job for the purpose of establishing wage and salary differentials. Jobs are evaluated on the basis of content and placed in order of importance. Jobs are ranked (not jobholders) PROCESS OF JOB EVALUATION: 1. Employees need to be compensated depending on the grades of jobs they perform. METHODS OF JOB EVALUATION 1.


Factor Comparison Method: The important factors are selected which can be assumed to be common to all jobs. Each of these factors are then ranked with other jobs. The worth of the job is then taken by adding together all the point values.


Non-Analytical Methods

Ranking Method: Jobs are ranked on the basis of their title or contents. Like Managers, Supervisors, Workers, Peon, etc. All managers whether from production, planning, sales, stores or Allied Services (House Keeping) Deptt are treated equal. Job is not broken down into factors etc. It is easier to implement but not always satisfactory for the employees. Job Grading Method: It is based on the job as a whole and the differentiation is made on the basis of job classes and grades. Like in a hotel, Receptionist’s job may be graded higher than back office billing clerk’s job. Similarly, a production/sales manager billet may be graded higher than Allied Services Manager’s. In this method it is important to form a grade description to cover discernible differences in skills, importance to company’s core operations, responsibilities and other characteristics.


1. Sometimes encourages employees to manipulate for promotion/internal placement when there may be limited opportunities for enhancement as a result of downsizing. 2. It promotes internal focus (office politics) instead of customer orientation 3. Not suitable for forward looking organizations, which may have trimmed multiple job titles into two or three broad jobs.

In the most simplified form - The process of breaking/organizing work into specific tasks in order to perform a specific job is called Job Design. Job Design is the logical Sequence to Job Analysis. Job design involves conscious efforts to organise tasks, duties and responsibilities into a unit of work to achieve certain objective.

Steps in Job Design
1. Specification of Individual Tasks 2. Specification of Methods for Tasks Performance 3. Combination of Tasks into Specific Jobs to be assigned to individuals


Organizational factors

(a) Characteristics of Tasks (Planning, Execution and Controlling of Task) (b) Work Flow (Process Sequences) (c) Ergonomics (Time & Motion Study) (d) Work Practices (Set of ways of performing tasks) 2. Environmental Factors (a) Employee Abilities and Availability (b) Social and Cultural Expectations 3. Behavioural Elements (a) Feedback (b) Autonomy (c) Use of Abilities (d) Variety


Work Simplification : Job is simplified or specialized. The job is broken down into small parts and each part is assigned to an individual. To be more specific, work simplification is breaking down the job to such small tasks that complexity is taken out of them. Like in a assembly line of car, one person only tighten wheel nuts with a

pneumatic tool which tighten the nuts. The complexity of ensuring that each nut is tightened to required degree has been transferred to machine and the worker only applies the tool to the right place. He does not even put the wheel in place. In such cases, work becomes repetitive in nature. Work simplification is used when jobs are not specialized.

Job Rotation : Same job, same people, same surrounding, days over days, months over months, leads to boredom and even fatigue. And it manifests in higher error rate, fall in productivity, absenteeism, job hopping, etc. Job rotation is answer to such problems. While broadly the job may remain same, minor variations between jobs are enough to rejuvenate the employee. It not only benefits the personnel but also the organisation in equal measure

Benefit to the Employee. It is a development tool since the employees get exposure to several jobs which develops their personality and employability. It improves their self-image and leads to personal growth. Such cross functional deployments often reveal hidden performance potentials/skills of many employees in the course of new job. Benefits to the Company: Such cross functional knowledge of employees provides the company with a fall back option in case of absence of any employee. It also gives flexibility to the management to reorganise the functional setup just in case of need like demand pattern shift or change in business model or any other eventuality. Also, periodic job rotation is the best method to avoid compartmentalisation of departments. Movement of personnel between departments and first hand knowledge of limitations and problems faced by other departments reduces frictions and leads to better cooperation between them. Interpersonal bonds developed during in the course of such cross functional job rotation further smoothens the interaction between departments. On the negative side, training costs rise and it can also de-motivate intelligent and ambitious trainees who might take it as their undesirability in their own department unless it is well laid down policy of the company.



Job Enlargement : It means expanding the number of tasks, or duties assigned to a given job. Job enlargement is naturally opposite to work simplification. Adding more tasks or duties to a job does not necessarily mean that new skills and abilities are needed. There is only horizontal expansion. It is with same skills taking additional responsibilities like increasing the number of machines operators under a supervisor from 10 to 15. Job enlargement may involve breaking up of the existing work system and redesigning a new work system. For this employees also need to be trained to adjust to the new system. Job enlargement is said to contribute to employee motivation but the claim is not validated in practice. Job Enrichment : Job enrichment is to add a few more motivators to a job to make it more rewarding. A job is enriched when the nature of the job is exciting, challenging, rewarding and creative or gives the job holder more decision-making, planning and controlling powers. An enriched job will have more authority,


an enriched job has eight characteristics: (a) (b) (c) (d) (e) (f) (g) (h) Direct Feedback: Employee should be able to get immediate knowledge of the results they are achieving. If other environmental factors in the business are not right. Problems with Job Enrichment (a) Job enrichment is not a substitute for good governance. Direct Communication Authority: An enriched job allows worker to communicate directly with people who use his or her output. more variety of tasks (horizontal enrichment) and more growth opportunities. As per the two-factor motivation theory.responsibility. (f) Change is difficult to implement and is always resisted as job enrichment brings in a changes the responsibility. Scheduling Own Work: Freedom to schedule own work (autonomy) is job enrichment. (d) Job enrichment assumes that workers want more responsibilities and those workers who are motivated by less responsibility. For example: transferring some of the supervisor’s tasks to the employee and making his job enriched. job enrichment is not enough. autonomy (vertical enrichment). It should be preceded by hygienic factors etc. Unique Experience: A enriched job has some unique qualities or features. Client Relationship: An employee who serves a client or customer directly has an enriched job. job enrichment surely de-motivates them (e) Workers participation may affect the enrichment process itself. Control over Resources: One approach to Job enrichment is for the each employee to have control over his or her resources and expenses. A self-directed team is a group of employees responsible for a . As per Hertzberg. The client can be outside or inside the firm. He or she receives praise for good work and blame for poor work. The employee does more planning and controlling with less supervision but more self-evaluation. Autonomous or Self-Directed Teams : Empowerment results in selfdirected work teams. (c) Job enrichment itself might not be a great motivator since it is job-intrinsic factor. Personal Accountability: An enriched job holds the incumbent responsible for the results. who was the father of this term. mere job enrichment will not mean much. 5. New Learning: An enriched job allows its incumbent to feel that he is growing intellectually. (b) Job enrichment may have short term negative effects till the worker gets used to the new responsibility.

Responsibilities. and are highly effective team. individual characteristics and group relationships outside the job. Skills. Natural affinity towards the job. steadiness. plan and control. JOB SATISFACTION Job satisfaction is self satisfaction derived by an employee in doing the job he has been entrusted to do. advancement opportunities. supervision. Advancement opportunities and Working conditions. Education and Personality.whole work segment. Management Controlled Factors: Security. which is the result of many specific attitudes in three areas namely. Work sampling operates . In short job satisfaction is a general attitude towards the job. They work together. Intelligence. working conditions. Job satisfaction is more a function of the various attitudes possessed by an employee towards his job. prompt settlement of grievances etc. etc. Job Inherent Factors: Nature of work. handle day-to-day problems. related factors and life in general than the job itself. COMPONENTS OF JOB SATISFACTION Personal factors: Sex. The attitudes related to job may be wages. An over ambitious person will never find the job satisfaction. Timings. Dependents. job factors. Age. Fringe benefits. recognitions." MEANING OF WORK SAMPLING Work sampling is based on the theory that the characteristics of a sufficiently large sample represent the actual characteristics of entire population. Payment. Co-workers. A person with a kind heart will find high level of job satisfaction in working with some agency involved in charitable work though the salary might be relatively less. Geography. Occupational status. Supervision WORK SAMPLING Definition: "A measurement technique for the quantitative analysis of an random/irregularly occurring activity. fair evaluation of work. social relations on job.

by an observer taking a series of random observations on a particular "item" of interest (machine. • • • Work sampling is relatively cheaper because it uses random samples instead of continuous observations. it can help pinpoint those areas. an analysis of the observations yields a statistically valid indication of the states for each thing analyzed. simple and inexpensive to use and extremely helpful in providing a deeper understanding of all types of operations. thus minimizing the effects of sudden variations on a particular day. operating room. The purpose of each is different and one can not be substituted by the other in most cases.) to observe its "state" (working. empty. Assume. . which should be analyzed in further detail and can serve as a measure of the progress being made in improving operations. ADVANTAGES OF WORK SAMPLING It is relatively easy. for example.). idle. that you wish to determine the proportion of time a factory operator is working or idle. dock. let us understand that the two are as different as chalk and cheese. From the random samples of his state you conclude that the individual is working 176/200 = 88% of the time. Also assume that 200 random observations were made of the operator and during 24 of these he or she was observed to be idle. While work sampling is a broad analysis of trend. When properly used. etc. QUESTIONS OF WORK SAMPLING STUDY • • • • What is our equipment/asset utilization? When we are not adding value to the product. Time study is conducted with a view to improve the process/method where as work sampling is done to improve quantitative utilisation of resources. how are we spending our time? How are our inter-dependent systems performing? Where should we focus our continuous improvement activities? DISTINCTION BETWEEN WORK SAMPLING AND "TIME STUDIES" Before we set out to analyse the distinctions between work sampling and time studies. When enough samples are taken. Many operators or machines can be studied by a single observer Work sampling normally spans over several days or weeks. time study is microanalysis of the job and procedure. etc. sleeping.

Many studies make use of off-shift technicians or operators to take the observations. under or over performing while under observation). does not require a trained time-study analyst to take the observations. deliberately or otherwise. . days of the week and if possible.• Work Sampling tends to minimize operator behaviour modification during observation (operator. in general. stopwatches or other timing devices are not required. months to get he correct trend. • WORK SAMPLING METHODOLOGY An analyst RANDOMLY observes an activity (equipment. The observations should vary over the time of the day. The ratio of the number of observations of a given state of the activity to the total number of observations taken will approximate the percentage of time that the activity is in that given state. Work Sampling. production line) and notes the particular states of the activity at each observation. operating room. Randomness of observations is very critical for a work sampling study. Also.

RECRUITMENT Definition: “Recruitment is the process of finding and attracting capable applicants for a job to create a pool from which selection is to be made of the most suitable candidates”. in practice. 5. the activity extends to the screening of applications so as to eliminate those who are not qualified for the job. Unemployment Rate (Area-wise) Labour Market Conditions Political and Legal Environment (Reservations. Though theoretically recruitment process is said to end with the receipt of applications. The Process begins when new recruits are sought and ends when their applications are submitted. 5. Demand and Supply status of specific skills set. Recruitment Policy (Internal Hiring or External Hiring?) Human Resource Planning (Planning of resources required) . 3. cost. 3. Meet legal and social obligations Identify and prepare potential job applicants To broad base the applicant pool in order to get the right talent at the affordable FACTORS AFFECTING RECRUITMENT External Factors: 1.” PURPOSE AND IMPORTANCE 1. The result is a pool of applicants from which selections for new employees are made. 2. Increase the pool of job candidates at minimum cost Help increase success rate of selection process by reducing number of underqualified or over-qualified applications. 4. 4. 2. Labour laws) Company’s Image Internal Factors: 1. 2.

Recruitment Planning (a) Number of applicants sought (Based on past experience) .3. 5. Recruitment Strategy Development (a) (b) Trained or untrained (to be trained at company’s expense) Internal or external sourcing Internal Recruitment (Source 1) (i) (ii) (iii) (iv) (v) Present employees Employee referrals Transfers & Promotions Former Employees Previous Applicants External Recruitment (Source 2) (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) (x) (c) Professionals or Trade Associations Advertisements Employment Exchanges Campus Recruitment Walk-ins Interviews Consultants Contractors Displaced Persons Radio & Television Acquisitions & Mergers Competitors Technological tools to be used for advertising Where to look How to look (d) (e) (f) 2. Size of the Organization (Bigger the size lesser the recruitment problems) Cost Growth and Expansion Plans RECRUITMENT PROCESS 1. 4.

Screening of Applications Evaluation and Cost Control (a) (b) (c) (d) (e) (f) (g) Salary Cost Management & Professional Time spent Advertisement Cost Producing Supporting literature Recruitment Overheads and Expenses Cost of Overtime and Outsourcing Consultant’s fees EVALUATION OF RECRUITMENT PROCESS 1. category. Selection rate from each source 3. 5. 4. area. 1. Types of applicants to be called (Qualification. Image projection INTERNAL RECRUITMENT Advantages Disadvantages Less Costly 1. Old concept of doing things Candidates already oriented towards 2. Recruitment Cost 5. Retention and Performance of selected candidates 4. Return rate of each source of recruitment 2. etc) Searching (a) (b) Source activation Selling 4. Candidates current work may be Organizations have better knowledge affected about internal candidates 4. 3. Morale problem for those not enhanced promoted. Time lapsed data 6. Politics play greater roles Employee morale and motivation is 5. It abets raiding organization 3.(b) 3. 2. EXTERNAL RECRUITMENT .


Besides this. Recruitment is said to be positive in its in its application in as much as it seeks approach as it seeks to attract as many to eliminate as many unqualified candidates as possible. The purpose of preliminary interviews is to weed out the prima facie misfit applicants. Preliminary Interview : This is a short interview. applicants as possible in order to identify the right candidates. Employment Interview : The next step in selection is employment interview. Recruitment refers to the process of 1. job. There are various types of tests conducted depending upon nature of job and the company. Selection on the other hand is negative 2. there are some other tests also like Interest Tests (activity preferences). Interview type and 2. . A formal definition of Selection is as under: “Selection is the process of differentiating between applicants in order to identify and hire those with a greater likelihood of success in a job. 3. These tests can be Aptitude Tests. Psychometric Tests etc. Personality Tests and Ability Tests and are conducted to judge how well an individual can perform tasks related to the job. It is also called courtesy interview and is a good public relations exercise. Graphology Test (Handwriting). PROCESS / STEPS IN SELECTION 1.” RECRUITMENT Vs SELECTION: DIFFERENCE Recruitment Selection 1. Selection is concerned with picking up identifying and encouraging people the right candidates from a pool of with required qualifications to apply for applicants. Medical Tests. interview is a formal and in-depth conversation to assess applicant’s suitability.SELECTION MEANING OF SELECTION Selection is the process of picking up individuals (out of the pool of job applicants) with requisite qualifications and competence to fill jobs in the organization. It is considered to be an excellent selection device. 2. Selection Tests : Jobseekers who pass the preliminary interviews are called for tests. Here.

Panel Interview. 3. or Sequential Interviews. 7. Reference & Background Checks : Reference checks and background checks are conducted for provisionally identified candidates to verify the information provided by them. it is more of a formality and selections decisions are very seldom affected by it. the candidate is required to undergo a physical fitness test. selection decision is made. Determine aids to be used for selection process. Contract of Employment : After the job offer is made and candidates accept the offer.pattern can vary greatly. The final decision has to be made out of applicants who have been identified as suitable. Besides there can be Structured and Unstructured interviews. Job Offer : The next step in selection process is job offer to those applicants who have successfully passed all tests. Check competence of recruitment consultants before hiring their services. Considering the job climate. 2. Detailed Job Descriptions and Job Specifications prepared in advance and endorsed by personnel and line management should be available with Selection Board. certain documents are needed to be executed by the employer and the candidate. However. Train the selectors to assess the right attributes in applicants. Attempt to validate the procedure regularly 7. 4. Involve line managers at all stages 6. 8. often more than required number is selected to cater for any selected candidate withdrawing at the job offer stage. A job offer is often contingent upon the candidate passing the physical examination. Behavioural Interviews. The views of line managers carry much weight at this stage because it is they who are eventually responsible for the performance of the new employee. Stress Interviews. 5. 4. A formal contract of employment. containing written contractual terms of employment etc are signed by both sides. Physical Examination : After the selection decision is made. Selection Decision : After obtaining all the information. It is made by way of letter of appointment. Reference checks can be through formal letters or telephonic. Interviews can be One-to-One. 5. Help the appointed candidate to succeed by training and management development . 6. GOOD SELECTION PRACTICE: ESSENTIALS 1.

BARRIERS TO EFFECTIVE SELECTION 1. Yet. 4. . Time and Cost : Often the time and funds available to undertake selection process are limited forcing the selectors to forego certain tests. 2. bureaucrats. Our limited perceptual ability is obviously a stumbling block to the objective and rational assessment of people. politicians. race or gender. Plethora of Human Traits : Success in any job is more a function of attitude than aptitude. The tests are validated over a period of time to differentiate between the employees who can perform well and those who will not. Perception : We all perceive the world differently. Pressure : Pressure brought on selectors by management. caste. no test can claim 100% success in finding the right employee. 5. Fairness : Barriers of fairness includes discrimination against religion. 3. friends and peers to select particular candidate are also barriers to effective selection. etc. relatives. region.

Like an employee being taught to operate another machine.TRAINING & DEVELOPMENT Training and development. To make the managers • • Self-starters Committed . Same program for some one in back office would be termed as Development program. At the best. soft skills training. will qualify as training and not as development. Dividing line between training and development is expectation of immediate benefits. The purpose of education is to teach theoretical concepts and develop a sense of reasoning and judgment. computed as follows. meditation exercises. reduced absenteeism on medical ground. While training is expected to reward the company immediately in terms of better productivity of employee. in case a program. like Communication Skills course for telephone attendant or receptionist. Training generally refers to teaching of new skill in professional field of the employee. Training & Development Need = Standard Performance – Actual Performance OBJECTIVES OF MANAGEMENT DEVELOPMENT PROGRAMS (MDP) 1. etc. or to perform a new operation in the same machine. are quite different. there might be some intangible benefits in the long run. Thus. loyalty. generally qualifying as development program. usually by changing the employee’s attitude or increasing his or her skills and knowledge. Development does not lead to any immediate and tangible benefits to the company. It may be to help an employee to grow. Education: It is a theoretical learning in classrooms. like improved motivation. improved intradepartmental relations.” The need for Training and Development is determined by the employee’s performance deficiency. Development refers to enhancement of personal qualities of the employee which do not have a one to one relationship with his current job. Definition of Training & Development “Training & Development is any attempt to improve current or future employee performance by improving his performance capabilities and potential through learning. Like stress management techniques. though are spoken in the same breadth. is directly related to employee’s job skills. Any training and development program must contain an element of education. etc. yoga lessons.

Helps remove performance deficiencies in employees 2. Creating self awareness 3. Accidents. complaints and turnover of employees . scraps and damages to machinery can be avoided 4. Teach them about effective communication 6. Greater stability. flexibility and capacity for growth in an organization 3. Serves as effective source of recruitment 5. To subordinate their functional loyalties to the interests of the organization TRAINING AND DEVELOPMENT: DIFFERENCE Training Training is skills focused Training is presumed to have a formal education Training needs depend upon lack or deficiency in skills Trainings are generally need based Training is a narrower concept focused on job related skills Training may not include development Development Development is creating learning abilities Development is not education dependent Development depends on personal drive and ambition Development is voluntary Development is a broader concept focused on personality development Development includes training wherever necessary Training is aimed at improving job related Development aims at overall personal efficiency and performance effectiveness (including job efficiencies) IMPORTANCE OF TRAINING & DEVELOPMENT 1.• • • • Motivated Result oriented Sensitive to environment Understand use of power 2. Reduces dissatisfaction. absenteeism. Instil zest for excellence 5. It is an investment in HR with a promise of better returns in future 6. Develop inspiring leadership styles 4.

Quality Circles 8. Take the instance of roadside mechanics. Trainers Perception Gaps can be reduced between employees and their supervisors 3. Performance Appraisals 2. Rating Scales Group Level Training Needs Identification 1. Employee learns while working. Exit Interviews 6. MBO / Work Planning Systems 7. Questionnaires 4. . Customer Satisfaction Survey 9. Interviews 3. Organizational Goals and Objectives 2. They do not learn the defect analysis and engine repairing skills in any classroom on engine models. Diagnosis of causes of performance deficiencies can be done METHODS OF TRAINING On the Job Trainings (OJT): When an employee learns the job in actual working site in real life situation. Training Progress Feedback 6. it is called OJT. Efficiency Indices 5. Small boys working there as helpers learn while helping the head mechanic. Attitude Surveys 5. Trainers can be informed about the broader needs in advance 2.IDENTIFICATION OF TRAINING NEEDS Individual Training Needs Identification 1. and not simulated environment. Analysis of Current and Anticipated Changes Benefits of Training Needs Identification 1. Personnel / Skills Inventories 3. Trainers can design course inputs closer to the specific needs of the participants 4. Work Sampling 7. Organizational Climate Indices 4.

It is not directly in the context of job 2. etc are called Off the Job Training. It may be in the form of orders or steps to perform a task. 2.Advantages of On-the-Job Training: 1. Off the Job Training: Trainings conducted in simulated environments. classrooms. It is not systematically organized 3. Job Coaching: An experienced employee can give a verbal presentation to explain the nitty-gritty’s of the job. It is least expensive 5. Poorly conducted programs may create safety hazards “On the Job Training” Methods 1. Trainees are highly motivated 6. 2. 5. It is systematically organized 3. seminars. It is directly in the context of job 2. Apprenticeships: Generally fresh graduates are put under the experienced employee to learn the functions of job. Internships and Assistantships: Interns or assistants are recruited to perform specific time-bound jobs or projects during their education. It is often formal . Trainer may not be experienced enough to train or he may not be so inclined. It is most effective because it is learning by experience 4. Job Rotation: Refer page 27. Job Instruction: It may consist of an instruction or directions to perform a particular task or a function. Efficiently created programs may add lot of value Disadvantages of Off-the-Job Training: 1. It is often informal 3. 4. Trainers are usually experienced enough to train 2. It is free from artificial classroom situations Disadvantages of On-the-Job Training: 1. 3. Advantages of Off-the-Job Training 1.

It is artificial in nature “Off the Job Training” Methods 1. 3. Trainees may not be much motivated 6. strong motivation for repeat learning. Advantages – Self paced. Programmed Instructions: Provided in the form of blocks either in book or a teaching machine using questions and feedbacks without the intervention of trainer. 4. 6. No feedback mechanism. 7. and Presentations etc. It is more emotional orientation and improves interpersonal relationships. Video. material is structured and self-contained. Disadvantages – Low interest of employees . Sensitivity Trainings: This is more from the point of view of behavioural assessment as to how an individual will conduct himself and behave towards others under different circumstances. Likely to lead to boredom for employees. Ensures active participation of all trainees. It is expensive. Disadvantages – One-way communication. No flexibility for different audience. Disadvantage – Participants may resort to their old habits after the training. Disadvantages – Scope for learning is less. and conflict resolution skills. There is no pre-planned agenda and it is instant. This is another excellent method to ensure full and whole hearted participation of employees and generates good interest among them. 5. openness. It is not learning by practice. trainees can progress at their own speed. 5. quality control possible. . cost of books. listening skills. Televisions. Audio-Visual: It can be done using Films. Simulation: Creating a real life situation for decision-making and understanding the actual job conditions give it. These are generally used in MDP. It is an ideal method to promote decision-making abilities within the constraints of limited data. Case is later discussed by instructor with all the pros and cons of each option. Role Plays: Here trainees assume the part of the specific personalities in a case study and enact it in front of the audience. manuals or machinery is expensive. Advantages – increased ability to empathize. Advantages – Wide range of realistic examples. 2. It may not be based on experience. Classroom Lectures: Advantage – It can be used for large groups. Can be very effective but needs good conductors. 4. Cost per trainee is low.3. Attitudinal change is another result. tolerance. No authentic feedback mechanism. It is One-way communication. Case Studies: It is a written description of an actual situation in the past in same organisation or some where else and trainees are supposed to analyze and give their conclusions in writing.

8. Management Commitment 2. Comprehensive and Systematic Approach 4. Laboratory Training. Lack of Management commitment 2. Computer Aided Instructions: It is extension of PI method. Promoting learning as fundamental value 6. Advantages – Provides accountabilities. Continuous and Ongoing approach 5. flexible to time. Disadvantages – High cost. Large scale poaching of trained staff 4. Non-cooperation from workers 5. Integration of Training with Business Strategies 3. Creations of effective training evaluation system . modifiable to technological innovations. by using computers. BARRIERS TO EFFECTIVE TRAINING 1. Unions influence HOW TO MAKE TRAINING EFFECTIVE 1. 9. Inadequate Training budget 3.

say. etc. Importance of Jobs to the organization 7. Organization Profile. etc 5. A new employee carries with him a lot of apprehension about place. need orientation course when they join the organisation. he is trained for a few months in Drill/Parade. Orientation is the information given to the new employees to make him aware of the comfort issues . what time lunch is. amenities. Every employee starting from the lower most. 6. weapon handling. their co-workers and the organization per se. colleagues. On the day of reporting.” Difference Between Induction and Orientation Induction refers to formal training programs that an employee has to complete before he is put on job. work rules and employee benefits. job. who are the people he would be working with and so forth. routine. from peon to CEO.INDUCTION & ORIENATION Induction and Orientation are the procedure that a new employee has to go through in the organisation. he needs to know his office/work place. PURPOSE OF ORIENTATION The idea of Orientation programme is to make the new employees feel “at home” in new environment. Orientation conveys following information: 1. Any employee while joining a new organisation is anxious about the new . etc. Definition “It is a Planned Introduction of employees to their jobs. Introduction to colleagues/immediate superiors and subordinates. before a new recruit is sent to border. This is called Induction. organisational culture. physical fitness. functional and reporting channels. Objectives.where the facilities are. Organisation’s geography/layout 2. History. Daily Work Routine 4. Like in Military. Organisational set up (Structure) 3. Detailed Orientation Presentation covering policies. Products and Services. and so on.

Formal or Informal: In informal orientation. A structured information and introduction system will make his transitory period short and reduce his anxiety quickly. Serial or Disjunctive: Orientation becomes serial when the person relinquishing the post hands over the position to the new incumbent. How long should the induction process take? It starts when the job ad is written. The first hour on day one is a critical component . which cannot wait . his exact responsibilities. In contrast. Individual or Collective: Another choice is to be made whether new employees are to be inducted in group or individually. issuing keys and passwords. in formal orientation. 3. TYPES OF ORIENTATION PROGRAMS 1. After that it is a matter of just in time training . emergency procedures. This is more applicable to high positions who may have been hired with a view to bring in their experiences and methods of management to the organisation. an employee goes through a structured introduction programme. explaining no go zones. He will begin to perform to his potential quickly. his work place. can we induct them? There are some issues. new colleagues. but is not employed.expanding the content as new duties are undertaken. Investiture or Divestiture: This is the final strategic choice which relates to decision regarding allowing the new employees to affect the organisation with his identity/ideas/functional methods or asking him to modify his identity to merge with existing culture of the organisation. (This is a . He learns the prevalent practices and history slowly from his subordinates and superiors on gradual basis.they vary according to your situation.signing on. etc. It becomes disjunctive when the new employee occupies a vacant position with no one to hand him over the position. We only employ new people one at a time . Until they are done the newcomer is on the payroll. 2. new employees are put on the jobs and they are expected to acclimatise themselves with the work and the organisation. Perhaps a buddy system on the job may be the best way to deal with such situations. his own performance vis a vis other more experienced employees in the organisation. continues through the selection process and is not complete until the new team member is comfortable as a full contributor to the organization's goals. meeting the people that you will interact with all have to be done immediately.set-up.

This may take some creative thinking. .system being followed by many US universities receiving lot of foreign students. they are less useful.until the new people are integrated. but the answer is quite simple . Perhaps some can wait until there are groups of people who have started in the last few months. The mathematics of Induction and orientation is often amazingly simple .) Other subjects may be incorporated with refresher training for current staff. or handled as participant in an outside program.not investing time and money to train costs more than training would. A local student is given a foreign student as buddy to help in all matters in the initial days.

if the team members are multi-skilled. 3. Apart from flexibility to redeploy man power as per changing needs. attending queries. Result is much faster service. In addition. Bank tellers are examples of multi-skilling. often job is accomplished much faster with better quality as no time is lost in explaining the job requirements by one team member to another with attendant risks of misunderstanding and rework. Imagine the state of extension counters of banks at school or college premises which are operated by just one or two employees. . maintaining account books and many other tasks are done by them. the team becomes very large and there is inadequate utilisation of team members. accepting deposits and dispensing cash. it also keeps the labour costs low. Smaller team size for complex tasks requiring multiple skills. in absence of multi-skilled workers.the ability of an employee to perform more than one function or the crosstraining of an employee in several disciplines or tasks. Opening the bank. verification of signatures. Employees can assume other tasks when there is absenteeism. Multi-Skilling is training of an employee to be able to do more than one job with equal dexterity. 2. Employees can be moved into other positions in case of overload of any department. Thus. Work force is more flexible. If such multi-skilling was not available with the banks. Advantages of Multi-Skilling (Tangible Benefits) 1. Many complex jobs require different skills to accomplish though involvement of each skill may be for very short duration. Even in the larger branches. team size can be kept small and thus the labour cost in minimised. Multi-Skilling is immensely beneficial to any organisation. Labour cost economy 5. But. Faster job 4. opening new account.MULTI SKILLING Definition Multi-Skilling. 6. Those one or two people perform all the functions which take up to 7 -8 people in bigger branches. such branches would have become unviable.

7. decreasing turnover. 8. Jobs remain interesting and challenging. Employees overcome feelings of having a dead-end job.Advantages of Multi-Skilling (Intangible Benefits) 1. 3. Disadvantages of Multi-Skilling 1. Tedious tasks can be spread around. Possible reduction in productivity during the training period/longer training period. 3. Employees become more aware of the workflow. 4. Employees are better prepared to anticipate problems or requirements of other areas. Cohesiveness is enhanced. . A new employee at a job may have new ideas to fine-tune that job. 4. 5. Boredom in the workplace is reduced. 2. Chances of partial skilling in various jobs instead of fully skilled in any one. 6. Increased supervisory time is required until the employee is up to speed. 2. Competence assessments may be more detailed than in traditional systems.

Structure and Technology Change has become inevitable due to: (a) (b) (c) (d) (e) Technology Competition Growing customer needs Environment Politics HR’s role in the change process is to help forecast future changes. develop systems and policies for managing human capital before. The adoption of a new idea or behaviour by an organization. Marketplace Labour markets Economic Changes Technology Laws and Regulations . 2. 4. Change can be classified as follows: Structural Changes Authority Coordination Centralization Technological Changes Processes Methods Equipments People Changes Attitudes Expectations Behaviours EXTERNAL FORCES OF CHANGE 1. 2. 3. 5. Alterations in People.CHANGE MANAGEMENT Change Management is a Critical HR Professional Skill Definitions: 1. during & after the change.

4. 3. 3. Corporate Strategies Workplace Technology and Equipments Employee Attitudes C H A N G E A G E N T S ( WHO CAN BRING ABOUT CHANGE?) 1. 2. 2. Unfreeze present level of behaviour Movement from present to new Refreezing process Kotter’s Change Management Model 1. Managers External Consultants Staff Specialists PROCESS OF CHANGE Lewin’s Three-Step Procedure of Change 1.INTERNAL FORCES OF CHANGE 1. 2. Unfreeze Establish Sense of Urgency Form Powerful Guiding Coalition Create the Vision Communicate the Vision RESISTANCE/BARRIERS TO CHANGE 1. 3. 5. 2. 3. 4. Fear of uncertainty or unknown Fear of economic loss Social pressures/peer pressure Perceived inconveniences . 2. 4. 3.

3. 2. Strategic planning and alignment Minimising resistance Maximising acceptance External environment assessment Change of Organisational structure and culture Developing work climate to enhance teamwork. Making the potential hardliners a member of the committee designing the change. Facilitation through support to people to overcome the blues of change Negotiation – Give and take attitude Manipulation – co-option Explicit or implicit coercion 3. trust and co-operation Whole hearted implementation TECHNIQUES OF REDUCING RESISTANCE 1. 7. 7. 4. 5. 2. 5. 6. 10. Mixed strategies are used to overcome change . 4. Fear of loss of power Need for new styles/skills/knowledge Resistance from groups Organisational culture Feeling of insecurity Lack of incentives MANAGING CHANGE It involves: 1. 6.5. Education through communication Participation of affected people from beginning rather than at the end. 8. 9. 6.

energy. help people to see opportunity. Commitment – Diagnosis: Enthusiasm & cooperation. reward those who have changed. continued lack of productivity. resentment. chaos. blame. Management: Confront with information. give them time. people organization. Management: Facilitate brainstorming. planning. Denial – Diagnosis: Common to observe withdrawal. explain what they can do. sometimes ritual is important.OLD TO NEW 1. create focus through short term wins. be empathetic. Resistance – Diagnosis: Anger. 4. increased activity with reduced productivity. Management: Listen.FOUR PHASES OF TRANSITION. identify with Management: Set long term goals. look for new challenges. depression. be optimistic. . new ideas. acknowledge feelings. reinforce reality of change. lack of focus. 2. Exploration – Diagnosis: Confusion. 3. help people to say good by to the old. Offer rewards for change. focusing on the past.

REENGINEERING TQM (Total Quality Management) Continuous Change Fixing and Improving Mostly focused on ‘As-Is’ Systems indispensable Bottom to Top Managing Downsized Workforce Open and honest communication Assistance to them Help for survivors of the downsized Stress in Workplace Opportunities stress Demands stress Constraints stress Re engineering Radical and One time Change Redesigning Mostly focused on ‘what can be?’ Top to Bottom .ORGANIZATIONAL DEVELOPMENT TECHNIQUES Survey Feedback Sensitivity Training Process Consultation Team Building Inter-group Development Conditions Facilitating Change Dramatic Crisis Leadership Change Weak Culture Young and Small Organization (ageing) The Road to Change in Culture Analyze the culture Need for change New leadership Reorganize Restructure New stories and rituals Change the job systems TQM V/S.

Therefore. reducing uncertainty is not always possible. .You can bring the change yourself at your pace. The choice is . 2. Time management programs will allow them to fill in more events into their daily life and reduce stress. Organizational communication: Clear and prompt communication of policies and decisions can help in keeping the stress within manageable limits. And the rate of change is faster than ever. that resists change. is still intact. If you can reduce uncertainty. stress will automatically reduce. Quite often worst of the result is less painful than the anxiety waiting for it. but it won't stop. Rate of obsolescence and therefore replacement is increasing. But despite all this. place and time. and relocation happens Employee Counselling Time management programs for employees: In the busy life of today. But those who lead the change are the ones who make the fortune. Some of these methods can be employed to reduce work place stress: 1.HOW TO REDUCE WORKPLACE STRESS Biggest source of stress is Uncertainty. Those who recognise the changing trends and change simultaneously are successful. Clear predefined performance parameters will take the uncertainty out of assessment and also anxiety. or Allow it to overcome you at its own choosing of time. basic human nature. New. Performance Assessment is another source of anxiety. Job Redesign. However. If you wish to succeed in this rapidly changing new world "you must learn to look at change as a friend . Fighting against change can slow it down or divert it temporarily. Changes in technology is leading to changes in business models and customer behaviour. WHY CHANGE MANAGEMENT? Change is the only constant in today’s world. higher the benefits. You can not escape change. 5. safer and cheaper products are entering the market at constantly decreasing interval. change management assumes criticality. The rate of change in today's world is constantly increasing. 3. True success and long-term prosperity in the new world depends on your ability to adapt to different and constantly changing conditions. jobs merging. it can be catastrophic for the organisation. especially when processes who presents you with an opportunity for growth and improvement. 4. And if the resistance is not well managed. time management is another source of stress for a lot of employees. Those who anticipate/foresee the impending change and prepare according are the ones who are hugely successful. Any attempt to bring change is fiercely resisted." Earlier you change. place and pace. better.

and give feedback to people so that they can accept and grow with it. Evolutionary change. abrupt and sometimes disruptive change. and continuously innovating is the third. and grow. When faced with market-driven urgency. it is rarely fast enough or comprehensive enough to move ahead of the curve in an evolving world where stakes are high. it creates a high-tension environment that intimidates rather than nurtures people. and the response time is short.1 Successful change efforts are those where the choices both are internally consistent and fit key external and situational variables." CREATING CHANGE FOR IMPROVEMENT AND COMPETITIVE ADVANTAGE Change creates opportunities. Swinging too far to revolutionary extreme may create "an organizational culture that is so impatient. that involves setting direction. revolutionary change is demanded. While the economy is shifting and innovation is rampant. innovate and modify their products and services. in order to survive and prosper. When choosing between evolutionary change and revolutionary action. However. Riding the wave of change is becoming the most important part of the business. As current products are becoming obsolete faster than ever. such as dramatic downsizing or reengineering. "Seeing is the first step. allocating responsibilities. "You have to find subtle ways to introduce change. The Silicon Valley slogan "Eat lunch and you are lunch" is more than a reflection of increasingly intense work ethic. that it fails to give new initiatives and new personnel time to take root. and so focused on change. seizing the second." Innovation redefines growth opportunities." . In situations when timing is critical to success. a leader must pursue a balanced and pragmatic approach. and establishing reasonable timelines for achieving objectives. stabilize. organizations continually need to improve. and companies must get more efficient and productive rapidly. new concepts. leaving them with little or no emotional investment in the company.EVOLUTIONARY (PLANNED) CHANGE VERSUS REVOLUTIONARY (FORCED) CHANGES How you change a business unit to adapt to shifting economy and markets is a matter of management style. "doing it the same way" is a recipe for corporate extinction. may be required to keep the company competitive. but only for those who recognize and seize it. is relatively painless. What's more.

structured system of measuring/evaluating job related behaviours and outcomes to discover how an employee has performed on the job and how he can perform more effectively in future so that employee. organization and society. Confirmations . Professional qualities like job knowledge. quality and quantity of output. leadership qualities.” Definition 2: “It is formal. etc. courage and endurance are more important factors. On the other side. Definition 1: “It is a systematic evaluation of an individual with respect to present performance on the job and his potential. It is a developmental tool used for all round development of the employee and the organization. (a) (b) General personality such as initiative. Promotions 2. The second definition brings in focus behaviour because behaviour affects not only employee’s performance but even his peers’ and subordinates’. dependability. For a soldier. a foreman in a factory would never be assessed for his courage.” PERFORMANCE APPRAISALS AND JOB ANALYSIS RELATIONSHIP Job Analysis  Describes the work and personnel requirement of a particular job Performance Standard  Translate job requirements into levels of acceptable or unacceptable performance Performance Appraisal Describe the individual’s past performance. team spirit. Objectives: Performance appraisals are used as a basis for following activities: 1. The performance is measured against a number of factors. Factors vary from organization to organization and job to job. versatility and so on. These factors can be divided into two groups. Assessment is often not confined to past performance but checks for potential performance also. all benefits. his tactical abilities are more important. suitability and potential.PERFORMANCE APPRAISALS WHAT IS PERFORMANCE APPRAISAL? Performance Appraisals is the assessment of individual’s performance in a systematic way. But for the Army General.

• • Past Oriented Methods Future Oriented Methods PAST ORIENTED METHODS 1. Identify opportunities variables TECHNIQUES / METHODS OF PERFORMANCE APPRAISALS Numerous methods have been devised to measure the quantity and quality of performance appraisals. Setting Objectives and Standards of performance 2. Each of the methods is effective for a particular class of employees in certain types of organization only. . Each of the selected performance attribute is numerically marked and then totalled to arrive at the final figure. low cost. Advantages – Adaptability. no formal training required. Broadly all methods of appraisals can be divided into two different categories. 3. Use and store data for appropriate purposes 6. Compensation reviews 5. easy to use. Rating Scales: This is simplest and most popular method. Disadvantages – Rater’s biases. large number of employees covered. Competency building 6. Design an appropriate appraisal program – Appraisal program for different levels of employees would be different.3. Feedback & Grievances PERFORMANCE APPRAISAL PROCESS 1. Appraise and record the performance 5. Training and Development program planning 4. every type of job can be evaluated. Evaluation of HR Programs 7. Rating scales consist of grading an employee’s past performance on a scale of say 1 -10. Performance Interviews 4.

2. the rater only does the reporting or checking and HR department does the actual evaluation. Disadvantages – Negative incidents may get priority or incidences could be forgotten. . 20% in Below Average Grade and 10% in Unsat grade. 4. Checklist: Under this method. does not allow rater to give relative ratings. Disadvantages – Rater’s biases. 10% 20% Unsat Below Avg Excellent 5. Supervisors record such incidents as and when they occur. Say 10% employees in Excellent Grade. 20% in Good Grade. 40% Average 20% Good 10% Critical Incidents Method: It takes cognisance of abnormal incidences only. Advantages – economy. The rater is forced to make a choice. Here. 40% in Average Grade. Forced Distribution Method: One of the problems faced in large organizations is relative assessment tendencies of raters. The real problem of this method occurs in organizations where there is a tendency to pack certain key departments with all good employees and some other departments with discards and laggards. Advantages – Evaluations are based on actual job behaviours. thus favouritism is beaten. This method overcomes that problem. HR department does actual assessment. good or bad. Feedback is easy and reduces recency biases. Forced Choice Method: A series of statements arranged in the blocks of two or more are given and the rater indicates which statement is true or false. checklist of “Statements of Traits” of employee in the form of Yes or No based questions is prepared. use of improper weights by HR Deptt. It forces every one to do a comparative rating of all the employees on a predetermined distribution pattern of good to bad. 3. Field Review Method: This method is useful only for senior positions in a large organisation spread over cities and countries. Appraisal is done by someone outside 6. ease of administration. Ratings are supported by descriptions. Relatively good employees of key departments get poor rating and relatively poor employees of laggards’ departments get good rating. Disadvantages – Statements may not be correctly framed. limited training required. Advantages – Absence of personal biases because of forced choice. Some are too lenient and others too severe. standardization.

good postings. Observation of actual behaviours not possible. Ranking Method: Superior ranks his worker based on merit. Advantage – It is extremely useful in filing information gaps about the employees that often occur in a better-structured checklist. Actual performance is more a function of attitude of person than potential. Cost 11. etc. on employees working at distant locations in different set of conditions. it is also time consuming and therefore affects full assessment. Comparative Paired Comparison Method: In this method each employee is paired with every other employee in the same cadre and then comparative rating done in pairs so formed. Disadvantage is that it is highly prone to biases and recency effect and ratings can be manipulated because the evaluations are linked to future rewards like promotions. 8. 10. Hence. Disadvantages – Some times costs of test development or administration are high. and benefit the organization derives is ascertained. Moreover. Advantage – Tests only measure potential and not attitude. The tests may be written or an actual presentation of skills. However how best and why best are not elaborated in this method. from best to worst. comparative or relative performance among employees is not clearly demarcated. it is more dependent upon cost and benefit analysis. its application in industry is not ruled out. 7. Accounting Method: Here performance is evaluated from the monetary returns yield to his or her organization. Evaluation Method (Ranking & Paired Comparisons): These are collection of different methods that compare performance with that of other coworkers. Confidential Reports: Though popular with government departments. The number of comparisons may be calculated with the help of a formula – N x (N-1) / 2. Disadvantages – Outsider is generally not familiar with employees’ work environment. It is easy to administer. Cost to keep employee. Disadvantages – It its highly dependent upon the writing skills of rater and most of them are not good writers. Feedback to the assessee is given only in case of an adverse entry. The system is highly secretive and confidential. The method is too tedious for large departments and often such exact details are not available with rater. Also. Advantages – Useful for managerial level promotions. • 9. • . Here the report is given in the form of Annual Confidentiality Report (ACR). Tests must be reliable and validated to be useful. Performance Tests & Observations: This is based on the test of knowledge or skills. The usual techniques used may be ranking methods and paired comparison method.employees’ own department usually from corporate or HR department. when comparable information is needed. Essay Method: In this method the rater writes down the employee description in the form of an essay.

expensive and time consuming. 13. . 360-Degree Feedback: It is a technique in which performance data/feedback/rating is collected from all sections of people employee interacts in the course of his job like immediate supervisors. 15. Finally. Disadvantages – Applicable only to quantifiable jobs. Psychological Appraisals: These appraisals are more directed to assess employees potential for future performance rather than the past one. It is especially useful to measure inter-personal skills. customer satisfaction and team building skills. An assessment centre is a central location where managers may come together to have their participation in job related exercises evaluated by trained observers. It is done in the form of indepth interviews. The tests also make sure that the wrong people are not hired or promoted. content validity and predictive ability are said to be high in Assessment Centres. Advantages – Well-conducted assessment centre can achieve better forecasts of future performance and progress than other methods of appraisals. Ratings strongly influenced by assessee’s inter-personal skills. peers. This technique has been found to be extremely useful and effective. Advantage – It is direct and accurate and transparent. It is more focused on observation of behaviours across a series of select exercises or work samples. It is more focused on employees emotional. 14. and motivational and other personal characteristics affecting his performance.FUTURE ORIENTED METHODS 12. Costs of employees travelling and lodging. subordinates and self with different weightage to each group of raters. Management By Objectives (MBO): Performance is rated against the achievement of objectives mutually agreed by the employee and the management. Assessees are requested to participate in in-basket exercises. intellectual. computer simulations. customers. Disadvantages – Concentrates on future performance potential. This approach is slow and costly and may be useful for bright young members who may have considerable potential. it clearly defines the criteria for selection and promotion. psychological tests. No assessment of past performance. on the negative side. psychologists. However. and discussion with supervisors and review of other evaluations. Also reliability. threatening. work groups. role playing and other similar activities which require same attributes for successful performance in actual job. However quality of these appraisals largely depends upon the skills of psychologists who perform the evaluation. receiving feedback from multiple sources can be intimidating. team members. Assessment Centres: This technique was first developed in USA and UK in 1943. Solid performers may feel suffocated in simulated situations. One of the biggest advantage of this system is that assesssees can not afford to neglect any constituency and has to show all-round performance. Short-term goals given preference at the cost of long-term goals etc.

Consistent Documentations maintained 10. ESSENTIALS OF A GOOD PERFORMANCE APPRAISAL SYSTEM: 1. Avoid rating problems like halo effect. . 6. severity etc. 4. Use of relevant rating tools or methods 6. etc 7. hostility. Defined performance standards – Bench Marks 3. 5. Use of objectively verifiable data 8. Standardized Performance Appraisal System 2. leniency. employees behaviour and feedback about performance are all linked to the corporate strategy. Uniformity of appraisals 4. Trained Raters 5. Status Effect – High esteemed or low esteemed job bearing on the appraisal. race. etc. Spill-over Effects – Effects of previous appraisal affecting recent appraisal 8.Purpose of performance evaluation is to make sure that employee’s goals. Halo/Gholem Effect – Entire assessment is affected by one or few aspects. regions. 9. region etc. Rater Effect – Favouritism. 2. creed. Should be based on job analysis 7. Central Tendency – Majority is crowded around average. Perceptual Sets – Effects of old beliefs about groups. All good or all bad. Problems of Rating: 1. Primacy & Recency Effect – Early period or near end period behaviour effects. central tendency. groups. religion. stereotyping. Leniency & Severity – Either too lenient or too severe. No room for discrimination based on cast. 3. kind of biases.

B A S I S O F H R A U D I T (PERSONNEL RESEARCH) 1. Wage Surveys 2. Clarification of HR duties and responsibilities 5. Stimulation of uniformity of HR policies and practices 6. Recruitment Sources effectiveness 3. Supervisor’s effectiveness 5. Employee needs survey 9. In 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. Industrial dispute settlements 6. Accident frequency surveys BENEFITS OF HR AUDIT 1. Improvement of professional image of HR department 3. Attitude Surveys 10. Encouragement of greater responsibility and professionalism among HR members 4. It gives feedback about HR functions to operating managers and HR specialists. It also shows how well managers are meeting HR duties. Job Satisfaction Survey 8. Job Analysis 7. Finding critical personnel problems . Assessment of contributions of HR department 2.HUMAN RESOURCE AUDIT NATURE OF HR AUDIT HR Audit is a tool for evaluating the personnel activities of an organization. Training efforts effectiveness 4. The audit may include one division or entire company.

3. 2. Statistical Approach (Statistical measures and tools) 4. Compliance Approach (Legal and company policies) 5. 1.7. Management By Objectives Approach (Goals & Objectives based) . Comparative Approach (Benchmarking with another company) 2. Creation of increased acceptance of changes in HR department 10.Corporate Strategy Audit APPROACHES TO HR AUDIT 1. (a) (b) (c) (d) 4. Human Resource Function Audit Managerial Compliance Audit Human Resource Climate Audit Employee Turnover Absenteeism Accidents Attitude Surveys HR . Based on this. External Authority Approach (Outside consultants’ standards) 3. Reduction of HR costs through more effective personnel procedures 9. HR audit can be spread across following four different categories. A thorough review of HR information systems SCOPE AND TYPES OF HR AUDIT HR Audit must cover the activities of the department and even extend beyond because the people problems are not confined to HR department alone. Ensuring timely compliance with legal requirements 8.

6. Diverse and changing workforce . 5. CHALLENGES OF MOTIVATION 1. Identify Individual’s Needs Search for ways to satisfy needs Goal & Objectives directed Increased performance Receiving rewards or punishment Reassessment of needs CRITICALITY OF MOTIVATION TO MANAGERS Manager is responsible for improving the productivity of his subordinates and ensuring that his they contribute towards the objective and mission of the organisation. 4. 5. Motivation increases attention towards human resources along with physical resources 2. P = f (A x M) Definition: Motivation is a set of forces that cause internal desire in people to behave in certain ways. 4. Motivation improves productivity. Motivation is a tool to achieve high level of performance from employees. MOTIVATION PROCESS (6 STEPS) 1. motivation can achieve one or more of the objectives below: 1. 3. Motivation stimulates both participation and production at work Motivation helps employees find new ways of doing a job Motivation makes employees quality conscious Motivation improves job related behaviour. It is only possible when employees perform at their maximum efficiency level. Depending upon the direction.MOTIVATION THEORIES Performance is a function of ability and motivation. 2. 6. 3.

Relatedness Growth) ERG theory emphasizes more on three broad needs that is Existence. stressed on social contacts as motivational factor. Porter’s Performance and Satisfaction Model) Reinforcement Categories (ERG Theory (Alderfer) Existence . Downsizing. Disadvantages – Dehumanized workers. Pay-for-Performance strategies Motives can only be inferred. Relatedness and Growth. CONTEMPORARY THEORIES Content Theories (Maslow’s Need Hierarchy. only stressed on monetary needs. Taylor said that people are primarily motivated by economic rewards and will take direction if offered an opportunity to improve their economic positions. However. Based on this Taylor described following arguments • • • • Physical work could be scientifically studied to determine optimal method of doing of a job. Hire-n-Fire. 3. developed through Hawthorne Studies. Adam’s Equity. Human Relations Model (Elton Mayo): Elton Mayo’s human relations model. Rightsizing.W.W. ignored human needs. Hertzberg’s 2-factors. too much reliance on social contacts to improve productivity was a major drawback. treated them as mere factors of production. Workers can be made more efficient by telling them how they were to do a job. Its hypothesis is that there may be more than one need operating at the same . Taylor’s techniques of scientific management. Achievement Motivation Theory) Process Theories (Vroom’s expectancy. 4.2. not seen Dynamic nature of human needs THEORIES OF MOTIVATION EARLY THEORIES Scientific Management (F. Alderfer’s ERG. Workers would accept the above prescription if paid on differentiated piecework basis. Taylor): Motivation by scientific management is associated with F. Greater importance was given to informal groups.

These factors are known as hygiene factors or job dissatisfiers. the work itself. Advantages – Tremendous impact on stimulating thought on motivation at work. the individual’s desire to increase lower level needs takes place. it is less restrictive and limiting. double dimensions of two factors are easy to interpret and understand. no overall measure of satisfaction utilized. increased understanding of role of motivation.time. advancement and growth. Disadvantages – Limited by its methodology. responsibility. status. Motivators are generally achievement. recognition. Advantages – More consistent with our knowledge of differences among people. inconsistent with previous research. Frustration at higher level need may lead to regression at lower level need. it is a valid version of need hierarchy. it focuses more on job satisfaction not on motivation. salary. specific attention to improve motivational levels. Disadvantages – No clear-cut guideline of individual behaviour patterns. job design technique of job enrichment is contribution of Hertzberg. ERG theory further states that when a higher level need is frustrating. reliability questioned. administration and working conditions. ERG theory contains frustration-regression dimension. too early to pass a judgment on the overall validity of the theory. security and interpersonal relations. supervision. Thus. job context factors. . which are related to job satisfaction. productivity factor ignored. Two-Factor Theory (Hertzberg) Fredrick Hertzberg states that the motivation concept is generally driven by two factors of motivators of job satisfactions and hygiene factors about job dissatisfaction. Hygiene factors deal with external factors like company policy.

happiness and enthusiasm. which determines their willingness to co-operate. It mobilizes energy. 4. A Function of drives and needs. A Function of freedom or restraint towards some goal. 2. 5. Distinction between Morale and Motivation: Morale 1. . Motivation moves person to action. Morale reflects Motivation. 2. A Process of stimulating individuals into action to accomplish desired goals. attitudes and sentiments that contribute towards general satisfaction at workplace.MORALE Definition 1: Morale is a mental condition or attitude of individual and groups. Composite of feelings. It mobilizes sentiments. Motivation 1. 3. Definition 2: Morale is attitudes of individuals and groups towards their work environment and towards voluntary cooperation to the full extent of their ability in the best possible interest of the organization. Motivation is a potential to develop morale. 4. Morale can be said to be a combination of satisfaction. 3.

However a policy statement is more specific and commits the management to a definite course of action. Listed below are some of the benefits: 1. Hence Personnel policy is the company’s plan of action towards treatment of its employees in matters of pay. Motivation & Loyalty: motivation and loyalty. These policies promote stability. And this happens when personnel policies reflect fair play and justice and help people grow within the organization. It is a statement of intentions committing the management to a general course of action. 6. . Consistent Treatment: Personnel policies ensure consistent treatment of all personnel throughout the organization. 5. benefits. work. A personnel policy spells out basic needs of the employees.PERSONNEL POLICIES MEANING OF PERSONNEL POLICY A Policy is a Plan of Action. A Policy may contain philosophy and principles as well. Personnel policies are also plans of action to resolve intra-personal. Personnel policy serves as a standard of treatment to all employees. etc. Sound personnel policies help build employee motivation and loyalty. Sound Personnel policies help build employee Basic Needs: Personnel policy helps the management to think deeply about basic needs of organization and the employees. Through personnel policy the personnel department ensure a fair and consistent treatment to all personnel by minimizing favouritism and discrimination. Fair Play & Justice: play and justice. interpersonal and inter-group conflicts. 2. 4. IMPORTANCE OF PERSONNEL POLICY Personnel policy is very important for an organization since it gives several benefits for managing the human resources effectively. welfare. 3. Standard of Performance: Personnel policies serve as a standard of performance. 7. Minimize Favouritism: discrimination Personnel policies reflect established principles of fair Personnel policies help minimize favouritism and Promote Stability: Personnel policies ensure continuity of action plan even if top management is changed.

worker’s participation in management means associating representatives of workers at every stage of decision-making. 3. Quality Circles 10. Staff Councils 5. Personnel Decisions: Recruitment and selection.8. Social Decisions: Hours of work. automation. Board Level 2. METHODS OF WORKERS’ PARTICIPATION IN MANAGEMENT 1. promotions and transfers. Empowered Teams 11. grievance settlements. This amounts to the workers having a share in final managerial decisions in an enterprise. welfare measures. lay offs. Participative management is considered as a process by which the worker’s share in decision-making extends beyond the decisions that are implicit in the specific content of the jobs they do. Collective Bargaining 7. Financial Participation . SCOPE OF WORKERS’ PARTICIPATION Scope of workers participation ranges over three managerial decision-making stages. 1. Job Enlargement and Enrichment 8. Total Quality Management 12. health. Suggestion Schemes 9. work rules. work distribution Economic Decisions: Methods of manufacturing. Complete Control 4. Ownership (share allocation) 3. WORKERS’ PARTICIPATION IN MANAGEMENT Broadly. 2. safety. sanitation and noise control. shutdowns. mergers and acquisitions and other financial aspects. Growth: Personnel policies help people grow within the organization. Joint Councils 6.

Self-esteem. Better quality suggestions expected . More commitment to goals 6. Less resistance to change 7.BENEFITS OF PARTICIPATION 1. Less labour problems 8. Reduced conflicts and stress between Management and workers 5. Gives identity to an employee 2. job satisfaction and cooperation improves 4. Motivates employee 3.

2. 2. To secure improved terms and conditions of employment for its members and the maximum degree of security to enjoy these terms and conditions. To redress the genuine grievances of individual worker vis-à-vis the individual employer. by substituting joint or collective action for individual action. To protect themselves against exploitation by management By force Dissatisfaction Lack of Power Union Instrumentality ROLE OF CONSTRUCTIVE AND POSITIVE UNION Unions have a crucial role to play in Industrial Relations. Unions also participate in deciding wage and salary structure and negotiate revisions once in 3 or 5 years. promotions. which contribute to the Quality of Work Life (QWL) and productivity. 2. 4. 3. 5. . Trade unions Act 1926 defines a trade union as a combination. 3. Unions have following broad role or objectives as mentioned below.UNIONS Employee associations are popularly known as unions. their role is much wider than this. 1. Unions make their presence felt in recruitment and selection. whether temporary or permanent formed primarily for the purpose of regulating the relation between 1. Many programs. Although they have become synonymous with strikes and unreasonable demands. training. termination or lay off. Trade unions are voluntary organizations of workers or employers formed to promote their interests through collective action. Workmen and Employers Workmen and Workmen Employers and Employers For imposing restrictive conditions on the conduct of any trade or business and includes any federation of two or more trade unions WHY DO EMPLOYEES JOIN TRADE UNIONS? 1. are undertaken by management in consultation with and with the cooperation of the unions.

13. specifies the following as unfair labour practices: 1. Unions are party to national. depending on their power and on local circumstances. To abolish work of a regular nature To transfer workmen To show favouritism or partiality To replace workers To recruit workmen during legal strikes To indulge in acts of violence or force To refuse collective bargaining Proposing and continuing lockouts 7. UNFAIR LABOR PRACTICES Industrial Disputes Act. interfere with or support financially or socially by taking active interest in forming own trade union. 8. corporate and plant levels. . 10. form. discharging union office bearers To discharge or dismiss workmen by victimizing. coerce workmen in the exercise of their right to organize. Plant level. which govern their actions to a greater or lesser extent. and Showing partiality or granting favours to one of several trade unions To establish employer sponsored trade unions To encourage or discourage memberships in any trade union by discriminating workman by punishing or discharging. Threatening workmen with discharge or dismissal Threatening of lockout or closure Granting wage increases to undermine trade union efforts To dominate. where the shop stewards organizations exercise joint control over some aspects of the organization of work and localized terms and conditions of employment. 4. 2. 11.3. 16. To obtain improved status for the worker in his work or her work To increase the extent to which unions can exercise democratic control over decisions. 3. changing seniority ratings. 15. 6. 5. local and plant level agreements. which affect their interests by power sharing at the national. 4. 14. 1947. join or assist a trade union. To interfere. 9. Industry level to establish joint regulation on basic wages and hours with an employer’s association. restrain. 12. 17. implicating in criminal case for patently false reasons. giving unmerited promotions. The union power is exerted primarily at two levels. refusing promotions. not in good faith.

There are broadly following method used to downsize the workforce as mentioned below. But employee should have completed at least one year of complete service in order to receive compensation. Lay off compensation can be claimed as a statutory right by the worker if he has completed one year of continuous service or has worked for 240 days on the surface or 190 days underground in 12 calendar months. the worker will not be called as retrenched. It is a termination for reasons other than disciplinary actions. breakdown of machinery. Compensation payable is half of the wages. Many organizations are providing liberal incentives to leave before age of superannuation. It is not a termination of service. retirement or superannuating.ORGANIZATIONAL DOWNSIZING Downsizing necessarily means reducing work force to an optimal level depending upon the business conditions and organizational needs. natural calamity etc. Compensation is payable for 15 days wages for every completed year of service besides one month’s notice or pay in lieu of notice. Retrenchment compensation and notice for retrenchment are only pre-conditions for retrenchment. LAY OFFS Lay off is inability of the employer to provide employment to workers due to circumstances beyond his control such as shortage of power. expiry and termination of contract or prolonged illness. coal. If notice and compensation are not given. It is said that an organization should be rightly staffed ie. VOLUNTARY RETIREMENT SCHEMES VRS are announced when there is a huge pool of old aged manpower occupying senior positions amounting to surplus. VRS in other words is a retirement before the age of retirement. RETRENCHMENT It means termination of service. . It should not be overstaffed and or understaffed.

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