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Introduction :
Every business is made up of people: its human resources. An organisation is nothing without human resources. Human resources management (HRM) is about managing these people effectively. It is aimed at achieving business objectives through the best use of an organisations human resources. Effective HRM is vital in all types and sizes of organisations. It is universally agreed that the quality of the human resources is the major factor in maintaining the competitiveness and profitability of the todays business. Now, more than ever, HRM is recognised as being critical to the survival and success of organisations.

What is HRM ? :
Human Resource Management (HRM) involves all management decisions and practices that directly affect. It is the set of organisational activities directed at attracting, developing, rewarding and maintaining an effective work force.

Definitions of H R M :
Human Resource Management is the use of several activities to ensure that human resources are managed effectively for the benefit of the individual, society and the business . Randall S.Schuler It is an integral but distinctive par of management, concerned with people at work and their relationships within the enterprise. It seeks to bring together into an effective organisation the men and women who staff the enterprise, enabling each to make his/her best contribution to its success, both as a member of a working group and as an individual. It seeks to provide relationships within the enterprise that are conductive both to effective work and human satisfaction . - Institute of Personnel Management. HRM is concerned with the people dimension in management. It is a process consisting of four functions acquisition, development, motivation and maintenance of human resources. - Stephen P.Robbins

Meaning or Human Resources

2 Human Resources can be thought of as the total knowledge, skills, creative abilities, talent and aptitudes of an organisations workforce, as well as the value, attitudes and beliefs of the individuals involved. It means employing people, developing their resources, utilising, maintaining and compensating their services in tune with the job and organisational requirements with a view to contribute to the goals of the organisation, individual and the society

Similar Terms :
Various terms are used to denote human resources management. These terms are, o Labour management, o Labour administration, o Personnel management, o Personnel administration, o Human capital management, o Humana asset management, o Industrial relations and etc. Under the labour management, the employees are treated just like a commodity which can be purchased, used and discarded, so it deals with employment, wages and dismissal termination. The concept of industrial relations deals with relations among employees, trade unions, employers and the govt, so it covers trade unions, disputes, grievances, discipline, collective bargaining and participative management. The latest term in this direction is Human Resources Development (HRD). Some organisations changed their personnel management department as Human Resources Management Department while other organisations changed them as Human Resources Development Department. The most prominent and the closest one to the term human resources management is Personnel Management.

Distinction between Personnel Management & HRM

Personnel Management It is a routine, maintenanceoriented administrative function. Human Resource Management It places emphasis on a continuous development of people at work. It is the expression of the unshakeable belief of an organisation in improving human processes on continuous basis.

It is mainly reactive and responsible to the demands of an organisation whenever they arise.

3 It is a proactive function. It is not only concerned with the present organisation needs but also anticipates future needs and acts accordingly.

It is seen as an independent function and sub-function without giving due regard to organisational strategies and processes. It takes a narrow view of its scope and objectives. It mainly concentrates on improving the efficiency of personnel is isolation without emphasis on the relevance of efficiencies in the organisational context.

It is viewed as a sub-system of the organisation. Hence it takes into account its linkages and interfaces with all other parts of the organisation. It undertakes a system view in which an attempt is made not only to make people efficient but also to make proper organisational culture to utilize the efficiency.

Evolution of Human Resource Management

The understanding of the origin of HRM is necessary to completely appreciate the underlying philosophy and techniques of HRM. The evolution of HRM can be briefed under four headings based on the time periods : The early years (i.e. before 1900) : The history of HRM can be traced to England and many concepts of HRM come from the USA. Before 1900, improving the working life of individuals was a major concern for reformers. Most hiring, firing, training and pay adjustment decisions were made by individual supervisors. The Industrial Revolution began with the substitution of steam power and machinery for time consuming hand labour. The first employment agents were hired by B.F.Goodrich Company, USA in1900. The Growth years (i.e. period between 1900 and 1946) : Concerns about unsafe working conditions and child labour led to the enactment of some state laws in USA protecting workers. The placement theme, The right man in the right job, became familiar and popular.

4 The key concepts such as of employee counselling; paid holidays, vacations and sick leave; and employer-paid life insurance premiums have begun. The role of HR dept. in the organisation as a staff function to support operational (line) departments started during this period.

The Maturation years (i.e. period between 1946 and 1970) : The employment Act established HR departments had become more professional. During this period, modified recruitment methods, sought new sources for employee candidates, completely revised selection and testing procedures & reassessed training need and criteria. Organisations job, benefit programs, motivation techniques and reward systems to reflect the changing characteristics of employees. The Transition years (i.e. 1970 and continues through today) : To reflect heavy government influences in HRM practices. The unique characteristic of this transition years is that the management of human resources has become the responsibility of every manager. The term human resource management has been used alternatively to the traditional term personnel management. Now the computerisation of HR activities receives more attention.

The American Society for Training & Development (ASTD) has developed a Human Resource Wheel in 1983 highlighting different functions of HRM leading to quality of work like, productivity and readiness for change. Union / Labour Relations Employee Assistance Compensation /Benefits T&D OD

HR areas output : Quality of work life Productivity Readiness for change

Organisation/ Personnel Research Information Systems

Job design Selection & Staffing HRP

5 T&D focus : Identifying, assessing & through planned learning these enable individuals to perform current or future jobs OD focus : Assuring healthy inter & intra personal relationships. Job design : Defining tasks, authority & systems will be organised & integrated across organisation units & in individuals jobs. HRP focus : Determining the organisations major HR needs, strategies & philosophies. Selection &Staffing: Matching people and their career and capabilities with jobs & career paths. Personal research & information systems: Assuring a personnel information base. Compensation / Benefits focus : Assuring compensation & benefits fairness & consistency. Employee assistance focus: Providing counselling to individual employees, for personal problem-solving. Union/Labour relations focus: Assuring healthy union/organisation relationships.

The Harvard model has integrated the history and practice of HRM, particularly emphasizing HRM as a general management function rather than personnel function only. The following figure explains that the HRM policy should evolve taking into consideration stakeholder interest and situational factors, which will lead to HRM outcomes like commitment, congruence & cost effectives. Stakeholder Long-term Interests Consequences - Shareholders Individual - Management well-being - Govt. -Organisational HRM policies - Choices - Reward systems - Work systems HRM outcomes - Competent - Commitment -

- Cost effectiveness

effectiveness Situational factors - Labour market - Unions - Tasks technology - Law & societal Values

Evolution of the Concept of HRM :

6 The Commodity Concept : Before the Industrial Revolution the guild system (selecting, training, rewarding & maintaining workers) were the beginning of personnel management. Industrial Revolution gave rise to the factory system. Labour began to be considered a commodity to be bought ad sold. The Factor of Production Concept : Under this, employees were considered a factor or production just like land materials and machinery. Taylors scientific management stressed proper selection & training of employees so as to maximise productivity. It was an improvement as employees gained through better working conditions & higher earnings. The Paternalistic Concept : Employees organised together on the basis of their common interests & formed trade unions to improve their lot. The state also recognised that workers had a right to protection in the employment. Employers began to provide welfare schemes to workers. The Humanitarian Concept : Under this, the employer was providing benefits to employees as a favour. Hawthorne experiments generated considerable interest in human problems of the work place. So, it is known as human relations concept. The Behavioural Human Resource Concept : Under this, Motivation, group dynamics, Organisational Climate, Organisational conflict, etc. became popular concepts. Employees began to be considered as valuable assets of an organisation. The Emerging Concept : Now employees are considered as partners in the industry. Workers representatives are being appointed on the board of directors. This emerging trend is aimed at creating a feeling among workers that the organisation is their own. Slowly but steadily, human resource management is emerging as a special academic discipline.

Thus, Human Resource Management began as a record keeping function and later on administration of labour agreements became its main task. Then it became the corporate conscience keeper concerned with morale of employees. Under the traditional approach, employees were considered problems, procedures and costs. The modern approach, on the other hand, looks upon them as a resource, an asset and an opportunity.

The Importance of the Human Factor

An organisation is nothing without human resources. The business success depends upon the how best they bring right kind of people, develop them and maintain them. For any organisation acquiring the services of its employees, developing their skills and motivating them are essential to achieve its organisational objectives. The proper management of human resources is very crucial for the organisations survival, growth, profitability, competitiveness and flexibility in adapting to changing conditions. At the outset, one can summarise the importance of human factor with these two notions: THE ENTERPRISE IS THE PEOPLE, &

The Importance of the Human Resource Management

The significance of human resource management can be discussed at four levels corporate, professional, social and national. Significance for an Enterprise : - Attracting & retaining the required talent through effective human resource planning, recruitment, selection, placement, orientation, compensation & promotion policies. - Ensuring that the enterprise will have in future a team of competent and dedicated employees. - Utilising effectively the available human resources. Professional Significance : Providing maximum opportunities for personal development of each employee. Maintaining healthy relationships between individuals, and different work groups. Allocating work properly. Improving the employees working skill and capacity. Social Significance : Providing suitable employment that provides social and psychological satisfaction to employees. Maintaining a balance between the jobs available and the jobseekers in terms of numbers, qualifications needs and aptitudes. Eliminating wastage of human resources through conservation of physical and mental health. By helping people make their own decision. National Significance :

8 The effective exploitation and utilisation of a nations natural, physical and financial resources require an efficient and committed manpower. The level of development in a country depends primarily on the skills, attitudes and values of its human resources. Effective management of human resources helps to speed up the process of economic growth which leads to higher standards of living & fuller employment.

Objectives of Human Resource Management

Every organisation has some objectives and every part of it should contribute directly or indirectly to the attainment of desired objectives. Objectives determine the character of an organisation. Objectives also provide standards of evaluating performance. In order to achieve organisational objectives integration of employers interest and employee interests is necessary. In this perspective the objectives of human resource management may be summarised as follows : To help the organisation attain its goals by providing well-trained and well motivated employees. To employ the skills and knowledge of employees efficiently and effectively, ie., to utilise human resources effectively. To enhance job satisfaction and self-actualisation of employees by encouraging and assisting every employee to realise his/her full potential. To establish and maintain productive, self-respecting and internally satisfying working relationships among all the members of the organisation. To bring about maximum individual development of members of the organisation by providing opportunities for training and advancement. To secure the integration of all the individuals and groups with the organisation by reconciling individual/group goals with those of the organisation. To develop and maintain a quality of work like (QWL) which makes working in the organisation a desirable personal and social situation.

To sum up, human resource management seeks to accomplish societal, organisational, labour union and individual goals. The requirements for attaining the above objectives are as follows.

9 Recruiting the right personnel possessing necessary skills and attitudes. Developing clearly defined objectives and policies through common understanding and mutual consultation. Communicating and explaining the goals to be achieved and the contributions expected of from every member of the organisation. Dividing the tasks properly with clear-cut authority, responsibility and relationship of one position with another. Maintaining sound industrial and human relations so as to secure the willing co-operation of all. Providing suitable monetary and non-monetary rewards for the contributions of employees.

Role of Human Resource Manager Human Resource Manager :

Human Resource (HR) or Personnel Department is established in many organisations, under the charge of an executive known as Human Resource Manager. He has a line authority to get orders executed within his department. The Personnel Manager performs managerial functions planning, organising, directing and controlling to manage department. He has also to perform certain operative functions recruitment, selection, training, placement etc., which the other managers may entrust to him. like his like line

He is basically a manager whatever may be the nature of his operative functions. The status of HR Manager in an organisation depends upon the type of organisational structure.

The important Qualities of HR Manager :

A mind with a capacity for creative thinking, for analyzing situations and reasoning objectively. He should know problem-solving techniques and have an ability to inspire, motivate & direct employees. Capacity for leadership, a sense of social responsibility and a standard of social justice. Initiative and decision making ability. Friendly approachable nature.

The Role of HR Manager :

10 To provide an adequate, competent and trained personnel for all levels and types of management & motivate them. To protect the common interest at all the parties and recognize the role of trade unions in the organisations. To establish the conditions for mutual confidence and avoid confusion and misunderstanding between the management and the workers. To provide security of employment to workers so that they may not be distracted by the uncertainties of their future. To provide an opportunity for growth within the organisation to persons who are willing to learn and undergo training to improve their future prospects. To provide for the payment of fair and adequate wages and salary to workers.

The managerial & operative functions of HR Manager, are as follows: Policy Initiation : It is one of the important tasks of a HR Manager. It is to prevent anticipated problems in the area of human resource management. He helps the top management in the formulation of policies on wage and salary administration, transfer, appraisal, welfare activities, personnel records and statistics, working environment, etc. Advisory Role : In all problems, such as, grievance over distribution of overtime work, annual increase in pay, transfer, promotion, disciplinary action, the HR manager can offer useful advice because he is familiar with personnel policies and practices, labour agreements, labour laws, etc. He can also advice on the preparation of bulletins, reports and procedural guidelines for the interpretation and implementation of policies. Linking Pin Role : He is responsible for setting up various committees on discipline, labour welfare, safety, grievance, etc. He helps in laying down the grievance procedure to redress the grievances of the employees. He gives authentic information to the trade union leaders regarding the personnel policies & programmes of the enterprise. He also conveys the views of the trade union leaders to the higher management.

11 Representative Role : He is a representative of the company and communicates management policies and decisions that affect people in the organisation. He also acts as workers representative to put forward their problems to management particularly in nonunionised organisation. Decision-making Role : He formulates and designs objectives, policies and programmes of human resource management. For instance, he decides about the contents and duration of training programmes for various categories of workers and executives. Mediator Role : He acts as mediator in the event of conflict among employees, or groups of employees, superior and subordinate. He attempts to maintain industrial peace and harmony in the organisation. Leadership Role : He ensures effective communication in the organisation and influences the workers for extending their cooperation in the extending the organisational objectives. He acts as a counsellor by providing advice to workers on their work and personal problems. Welfare Role : He acts as a welfare officer in the organisation. He is concerned with provision of canteen, crches, transport, hospital and other welfare services for the benefit of workers and their family members. Research Role : He maintains the records of the employees working in the enterprise. On the basis of records, he undertakes research in various personnel areas such as absenteeism, labour turnover, alcoholism etc. and suggests suitable measures for improvement to the top management.

Skills and Competencies Required for a HR Manager :

Problem solving skills Business knowledge / organisation sensitivity Knowledge of compensation techniques to reinforce business plans, Strategic and conceptual skills, Knowledge of career-planning systems,

12 Ability to analyze data and plan from it. Computer literacy, Competence in HR functional area, and Awareness of the financial impacts in the HR function

Human Resource Planning Meaning of HRP :

Process of analysing and identifying the need for and availability of human resources so that the organisation can meet its objectives. HRP is understood as the process of forecasting an organisations future demand for, and supply of, the right type of people in the right number. It is only after this that the HRM department can initiate the recruitment and selection process. HRP is a sub-system in the total organisational planning. Organisational planning includes managerial activities that set the companys objectives for the future and determine the appropriate means for achieving those objectives. HRP facilitates the realisation of the companys objectives by providing the right type and the right number of personnel. It is like materials planning that estimate the type and quantity of the materials and supplies needed to facilitate the manufacturing activities of the organisation.

Definitions of HRP :
Manpower planning is the strategy for the acquisition, utilisation, improvement and preservation of an organisations human resources. It is aimed at coordinating the requirements for and the availability of different types of employees . Stainer Human resource planning is a process of determining and assuming that the organisation will have an adequate number of qualified persons, available at the proper times, performing jobs which meet the needs of the enterprise and which provide satisfaction for the individuals involved . Beach

Characteristics of HRP :
HRP like all planning is forward looking or future oriented. It involves forecasts of the manpower needs in a future time period so that adequate and timely provisions may be made to meet the needs.

13 It is an on-going or continuous process because the demand for the supply of human resources undergo frequent changes. It is an integral part of corporate planning. It is to make optimum utilisation of an organisations current and future human resources. It has both quantitative and qualitative aspects. It is the primary responsibility of management so as to ensure effective utilisation of the organisations human resources. It is a systems approach to human resources. Comparison and evaluation of demand & supply so as to identify the gap between the two is the transformation process. To ensure optimum use of existing human resources. To forecast future requirements for human resources. To provide control measures to ensure that necessary human resources are available as and when required. To link human resource planning with organisational planning. To assess the surplus and shortage of human resources. To anticipate the impact of technology on jobs and human resources. To determine levels of recruitment and training. To estimate the cost of human resources and housing needs of employees. To provide a basis for management development programmes To facilitate productivity bargaining. To meet the needs of expansion and diversification programmes. It is helpful in selection and training activities. It ensures that adequate number of persons are selected and trained well in advance to dill future job vacancies. It identifies gaps in existing manpower in terms of their quantity and talent. Provision for replacement of personnel can be made through human resource planning. It helps to reduce wastage of manpower. It also helps in judging the effectiveness of human resource policies. It is helpful in effective utilisation of technological progress. The areas of surplus manpower can be anticipated and timely action can be taken. It is useful in anticipating the cost of human resources which facilitates the budgeting process. It facilitates career succession planning in the organisation. It provides enough lead time for internal succession of employees to higher positions through promotions.

Objectives of HRP :

Importance of HRP :

14 It also facilitates educational reforms, geographical mobility of talent and employment generation. Creating Highly Talented Personnel Protection of Weaker Sections International Strategies Foundation for Personnel Functions Increasing Investments in Human Resources Resistance to change and move. Upper management has a better view of the HR dimensions of business decision. More time is provided to locate talent. Better opportunities exist to include women and minority groups in future growth plans. Better planning of assignments to develop managers can be done. Major and successful demands on local labour markets can be made.

The HRP Process :

HRP essentially involves forecasting personnel needs, assessing personnel supply and matching demand supply factors through personnel-related programmes. The planning process is influenced by overall organisational objectives and the environment of business. Environment Organisational Objectives and Policies HR Needs Forecast HR Programming HRP Implementation Control and Evaluation of Programme HR Supply Forecast

Surplus Restricted Hiring Reduced Hours VRS, Lay off, etc.

Shortage Recruitment and Selection


Organisational Objectives & Policies : The objectives of the HR plan must be derived from organisational objectives. Specific requirements in terms of number and characteristics of employees should be derived from the organisational objectives. The role of HRP is to sub-serve the overall objectives by ensuring availability and utilisation of human resources. Once the organisational objectives are specified, communicated and understood by all concerned, the HR department must specify its objectives with regard to HR utilisation in the organisation. In developing these objectives, specific policies need to be formulated to address the following questions. o How do the training and development objectives interface with the HRP objectives ? o How to enrich employees job? Should the routine and boring jobs continue or be eliminated? o How to ensure continuous availability of adaptive and flexible work force. HR Demand Forecast : It is the process of estimating the future quantity and quality of people required. The basis of the forecast must be the annual budget and longterm corporate plan, translated into activity levels for each function and department. It can help, quantify the jobs necessary for producing a given number of goods, or offering a given amount of services. It can help, determine what staff-mix is desirable in the future. It can help, assess appropriate staffing levels in different parts of the organisation so as to avoid unnecessary costs. It can help, prevent shortages of people where and when they are needed most. It can help, monitor compliance with legal requirements with regard to reservation of jobs. Forecasting Techniques : Managerial Judgement : o In this, managers sit together, discuss and arrive at a figure which would be the future demand for labour. o It involves a bottom-up or top-down approach.

o o o o

16 In bottom-up, line managers submit their departmental proposals to top managers who arrive at the company forecasts. In top-down, top managers prepare company and departmental forecasts. Neither of these approaches is accurate- a combination of the two could yield positive results. This technique is used in smaller organisations or in those companies where sufficient data base is not available.

Ratio-trend analysis : o This is the quickest forecasting technique. o This is involves studying past ratios, making some allowance for changes in the organisation or its methods. o It is an analysis of actual and forecast ratios, between the number of routine proposals to be processed by a companys underwriting department and the number of underwriters employed could be used to forecast future requirement. Work study techniques : o It can be used when it is possible to apply work measurement to calculate the length of operations and the amount of labour required. o It is prepared in terms of volumes of output for individual departments. o The budgets of productive hours are then compiled using standard hours for direct labour. o The standard hours per unit of output are then multiplied by the planned volume of units to be produced to give the total number of planned hours for the period. o This is then divided by the number of actual working hours for an individual operator to show the number of operators required. Delphi Technique : o It solicits estimates of personnel needs from a group of experts, usually managers. o The HRP experts acts as intermediaries, summarise the various responses and report the findings back to the experts. o Summaries and surveys are repeated until the expert opinions begin to agree. Flow models :

o o o o o

17 The forecasters will determine the time that should be covered. Shorter lengths of time. Count annual movements among states for several time periods. These defined gains or losses to the company or change in position levels/employment status. Losses include death or disability, absences, resignations and retirements. Gains include hiring, rehiring, transfer and movement by position level.

HR Supply Forecast : Supply forecasting measures the number of people likely to be available from within and outside an organisation, after making allowance for absenteeism, internal movements and promotions, wastages and changes in hours, and other conditions of work. It helps quantify number of people and positions expected to be available in future to help the organisation realise its plans and meet its objectives. It helps clarify likely staff mixes that will exist in the future. It assess existing staffing levels in different parts of the organisation. It prevents shortage of people, where and when they are most needed, Monitors expected future compliance with legal requirements of job reservations. It covers, Present Employees, Internal Sources of apply and External Sources of Supply. Present Employees : - It facilitated by HR audits. It summarise each employees skills and abilities. - The audits of non-managers are called skills inventories and those of the management are called management inventories Skills Inventories : o Seven broad categories of information are included in each skills inventory. They are, Personal data age, sex, marital status. Skills education, job experience, training. Special qualifications membership in professional bodies, special achievement Salary and job history present & past salary, dates of pay raises. Company data benefit plan data, retirement information, seniority

18 Capacity of individual scores on psychological and other tests, health information. Special preference of individual geographic location, type of job.

Management Inventories : o These include such data as : Work history Strengths Weakness identification of specific training programmes needed to remove the weaknesses. Promotion potential Career goals Personal data Number and types of employees supervised. Total budget managed Previous management duties. Internal Supply : - Armed with HR audits, planners can proceed with the analysis of internal supply. - The techniques generally used for the purpose are as follows, In flows and Outflows : o Here the determination of the number of losses (transfers, resignations, discharge, promotions and so forth) and gains (promotions and transfer) is made. o It is possible to make very accurate estimate because specific employees might have been earmarked for promotions and transfers. Turnover Rate : o Turnover rate is the traditional and simple method of forecasting internal supply. The turnover rate is; Number of separations during one year ------------------------------------------------------------------- X 100 Average number of employees during the year Conditions of Work and Absenteeism : o Changes in conditions of work such as normal weekly working hours, overtime policies, the length and timing of holidays, retirement policy, the policy for employing part times and shift systems need to be assessed. Productivity Level : o Any change in productivity would affect the number of persons required per unit of output.

19 o Increase in productivity will reduce the requirement, and decrease in it would have the opposite effect. Movement among jobs : o Some jobs are sources of personnel for other jobs. o For example, Secretaries may be obtained by the promotion of typists and branch managers are obtained from a pool of section managers. External Supply : - External sources are important for specific reasons. o New blood and new experience will be available. o Organisation needs to replenish lost personnel o Organisational growth and diversification create the needs to use external sources to obtain additional number and type of employees HR Programming : o Once an organisations personnel demand and supply are forecast, the two must be reconciled or balanced in order that vacancies can be filled by the right employees at the right time. HR Plan Implementation : - It requires converting an HR plan into action, which includes o Recruitment, Selection and Placement. o Training and Development o Retraining and Redeployment (New skills are to be imparted to existing staff when technology changes, when a product line is discontinued, its employees are to be retrained and redeployed to other departments and budget allocation for such programmes) o Retention Plan (Compensation plan, Performance appraisal, Employees leaving in search of green pastures, Employees quitting because of conflict, The induction crisis, Shortages, Unstable recruits) Control and Evaluation : o It represents the finial phase in the HRP process. o The HR plan should include budgets, targets and standards. o It should also clarify responsibilities for implementation and control, and establish reporting procedures which will enable achievements to be monitored against the plan. o Should also report employment costs against budget, and trends in wastages and employment ratios.

Levels of HRP :

20 National Level : o It forecasts the demand for supply of human resources for the country as a whole. o It covers factors like population projections, economic development programme, educational facilities, occupational distribution of population, mobility of people, etc. o The govt. uses population policy, family planning, education policy, etc. to create a match between the demand and supply of human resources. o The govt. of India has specified the objectives of human resource planning in successive Five-year plans. Sectoral Level : o Central & State govt. formulate human resource plans for particular sectors., e.g agricultural sector, industrial sector, tertiary sector, etc. Industry Level : o HRP for specific industries like textiles, cement, iron and steel, petrochemicals, computers etc. and are prepared on the basis of projected operations/output of the particular industry. Unit Level : o These may be estimated department wise, job category wise etc. o Under this, the divisional committee will review and integrate plant level plans.

Problems in HRP :
Inaccuracy : o It involves forecasting the demand for and supply of human resources, therefore, it cannot be a cent percent accurate process. Employees Resistance : o Employees and trade unions feel that due to widespread unemployment people will be available for jobs as and when required. o Employers may also resist HRP feeling that it increases the cost of manpower. o Managers & HR specialists do not fully understand HRP process and lack a strong sense of purpose Uncertainties : o Labour absenteeism, labour turnover, seasonal employment, technological changes and market fluctuations are the uncertainties which serve as constraints to human resource planning. Inefficient Information System :

21 o In many Indian industries human resource information system has not been fully developed. o In the absence of a reliable data, it is not possible to develop effective human resource plans. Lack of Top Management Support : o In the absence of support and commitment from the top, human resource experts find in difficult to obtain vital inputs. o In some cases sophisticated technologies are forcefully introduced just because competitors have adopted them. These may not yield fruits unless matched with the needs and environment of the particular enterprise. Time and Expense : o It is a time consuming & expensive exercise. Unbalanced Focus : o In some companies, HR Planning is used as a number game. o Too much focus on the quantitative aspect to ensure the flow of people in and out of the organisation. o Career planning & development, skill levels, morale, etc. are likely to suffer dir to such unbalanced approach to HRP. HRP must be recognised as an integral part of corporate planning. The planner of human resources must therefore, be aware of the corporate objectives. Backing of top management for HRP is absolutely essential. HRP responsibilities should be centralised in order to coordinate consultation between different management levels. Personnel records must be complete, up-to-date and readily available. The time horizon of the plan must be long enough to permit any remedial action. The techniques of planning should be those best suited to the data available and the degree of accuracy required. Plans should be prepared by skill levels rather than by aggregates. Data collection, analysis, techniques of planning and the plans themselves need to be constantly revised and improved in the light of experience.

Guidelines for Making HRP Effective :

Forecasting Human Resource Requirement and Internal - External Sources Forecasting :

22 Use of information from the past and present to identify expected future conditions. Forecasts may be either judgemental or mathematical methods. Despite the availability of sophisticated mathematical models and techniques, forecasting is till a combination of quantitative method and subjective judgement. The facts must be evaluated and weighed by knowledgeable individuals, such as managers and HR experts, who use the mathematical models as tools and make judgements to make decisions. Estimates : o Can be either top-down or bottom-up, but essentially people who are in a position to know are asked, How many people will you need next year ? Rules of Thumb: o Rely on general guidelines applied to a specific situation with in the organisation. For example, a guideline of one operations manager per five reporting supervisors aids in forecasting the number of supervisors needed in a division. Delphi Technique : o Uses input from a group of experts whose opinions of forecasted situations are sought. These expert opinions are then combined and returned to the experts for a second anonymous opinion. The process continues through several rounds until the experts essentially agree on a judgement. Nominal Group o Unlike the Delphi method, require experts to meet face to face. Their ideas are usually generated independently at first, discussed as a group and then compiled as a report. Mathematical Methods Statistical regression analysis Simulation models Productivity factors Staffing ratios HR Demand and Supply Forecasts

Forecasting Methods :

Judgemental Methods include the following:

Judgemental Methods Estimates Rule of Thumb Delphi Technique Nominal Groups


Mathematical Methods include the following:

Statistical Regression analysis : o Makes a statistical comparison of past relationships among various factors. Simulation models : o Are representations of real situations in abstract form. Productivity Ratios : o Calculate the average number of units produced employee. These averages can be applied to sales forecasts to determine the number of employees needed. Staffing Ratios : o Can be used to estimate indirect labour

Forecasting Periods:
Short Term Period : o It is most commonly used planning period. o Period of 6 months 1 period. o This level of planning is routine in many organisations because few assumptions about the future are necessary for such short range plans. Intermediate Term Period : o Much more difficult process. o Period of 1 5 years in to the future. Long Term Period : o Plans extend beyond 5 years. The demand for employees can be calculated on an organisation wide basis. HR planners to better pinpoint the specific skills needed than the aggregate method does. Forecasting human resources can be done using two frameworks. One approach considers specific opening that are likely to occur and uses that as the basis for planning. The openings are created when employees leave a position because of promotions, transfers and terminations. Decision rules are developed for each job or level.

Forecasting the Demand for HR :

24 The overall purpose of this analysis is to develop a forecast of the needs for human resources by number and type for the forecasted period. Forecasting the availability of Human Resources considers both external & internal supplies. Although the internal supply may be easier to calculate, it is important to calculate the external supply as accurately as possible.

Forecasting the Supply of Human Resources:


External Supply : The external supply of potential employees available to the organisation needs to be estimated. Many more complex and interrelated factors must be considered, including the following. o Net migration into and out of the area o Individuals entering and leaving the workforce o Individuals graduating from schools and colleges o Changing workforce composition and patterns o Economic forecasts for the next few years. o Technological developments and shifts o Actions of competing employers o Govt. regulations and pressures o Factors affecting persons entering and leaving the workforce. Internal Supply : Estimating internal supply considers that employees move from their current jobs into others through promotions, lateral moves and terminations. Also, it considers that the internal supply is influenced by training and development programs, transfer and promotion policies and retirement policies, among other factors. Succession analysis : - It is one method used to forecast the supply of people for certain positions. - It relies on replacement charts, which are succession plans developed to identify potential personnel changes, select backup candidates, promote individuals and keep track of attribution for each department in an organisation A Transition matrix : - Can be used to model the internal flow of human resources. - It is the internal flow of people through a large organisation over time.

Selection Process


Meaning :
Selection is the process of picking individuals with requisite qualifications and competence to fill jobs in the organisation. It is the process of differentiating between applicants in order to identify (and hire) those with a greater likelihood of success in a job.

Definition :

Organisation for Selection :

Many mangers insisted upon selecting their own people because they were sure no one else could choose employees for them as efficiently as they themselves could. Not any more. Selection is now centralised and is handled by the Human resources department. This arrangement is preferable because of the following advantages. It is easier for the applicant because they can send their applications to a single centralised department / agency. It facilitates contact with applicants because issues pertaining to employment can be cleared through one central location. It helps provide for better selection because hiring is done by specialists trained in staffing techniques. The applicant is better assured of consideration for a greater variety of jobs. Hiring costs may be cut because duplication of effort is minimised. With increased govt. regulations on the selection process, it is important that people who know about these rules handle a major part of the selection process.

Selection Process :
External Environment
R e j e c t e d A p p l i c a t i o n s

Internal Environment Preliminary Interview Selection Tests Employment Interview Reference and Background Analysis Selection Decision Physical Examination

26 Job Offer Employment Contract Evaluation Preliminary Interview : - The applications received from job seekers would be subject to scrutiny so as to eliminate unqualified applicants. - It is followed by elimination of unqualified applicants. - Scrutiny enable s the HR specialists to eliminate unqualified job seekers based on the information supplied in their application forms. - On the other hand, helps reject misfits for reasons, which did not appear in the application forms. - It is also called as Courtesy Interview is a good public relations exercise. Selection Tests : - Who passed the screening and the preliminary interview are called for tests. - Tests are used to determine the applicants ability, aptitude and personality. Ability Test : - Assist in determining how well an individual can perform tasks related to the job. - An excellent illustration of this is typing test given to a prospective employee for secretarial job. Aptitude Test : - It helps to determine a persons potential to learn in a given area. Personality Test : - Are given to measure a prospective employees motivation to function in a particular working environment Interest Test : - Are used to measure an individuals activity preferences. - It is useful for students considering many careers or employees deciding upon career changes. Graphology Test : - It is designed to analyse the handwriting of an individual. - It has been said that an individuals handwriting can suggest the degree of energy, inhibitions and spontaneity as well as disclose the idiosyncrasies, and elements of balance and control. Medical Test :

27 - Reveal Physical fitness of a candidate. With the development of technology, medical tests have become diversified. Drug Test : - It help measure the presence of illegal or performanceaffecting drugs. Genetic Screening Test : - It identifies genetic predispositions to specific medical problems. - It helps measure and monitor a candidates physical resilience upon exposure to hazardous chemicals.

Employment Interview : An interview is conducted at the beginning and at the end of the selection process. Interview is formal, in-depth conversation conducted to evaluate the applicants acceptability. It allows a two-way exchange of information, the interviewers learn about the applicant, and the applicant learns about the employer. The employment can be, One to- one interview : - There are only two participants- the interviewer and the interviewee. Sequential interview : - Takes the one-to-one a step further and involves a series of interviews, usually utilising the strength and knowledge base of each interviewer. - So that each interviewer can ask questions in relation to his or her subject area of each candidate, as the candidate moves from room to room. The Panel interview : - Consists of two or more interviewers and the figure may go up to as many as 15. - The panel interview can make the candidate feel ill at ease and confused about whose question to answer and whom to address. Objectives of Interviews : - Helps obtain additional information from the applicant; - Facilitates giving general information to the applicant such as company policies, job, products manufactured and - Helps build the companys image among the applicants. Types of Interviews : Structured Interview :

28 The interviewer uses a preset standardised questions which are put to all the interviewees. This interview is also called guided or patterned interview. A predetermined checklist of questions, usually asked of all applicants. It is useful when dealing with large number of applicants.

Unstructured Interview : - Is also known as unguided or unpatterned interview, the interview is largely unplanned and the interview is largely unplanned and the interviewee does most of the talking. - It leads to a friendly conversation between the interviewer and the interviewee. Mixed Interview : - In practice, a blend of structured and unstructured questions is used by the interviewer while interviewing the job seekers. Behavioural Interview : - It focuses on a problem or a hypothetical situation that the applicant is expected to solve. - It primarily reveals the applicants ability to solve the types of problem presented. Stress Interview : - It attempt to learn how the applicant will respond to the pressure. - This technique is more relevant in jobs involving stress. Common Interview Problems : - Interviewers may make snap judgements early in the interview. Consequently, they block out further potentially useful information. - The interviewer often does not know the conditions under which the job is performed. - Interviewers have a tendency to be swayed by negative information about the applicants. - Interviewers judgements are often affected by the pressure to favour a candidate or fill the position, hence they lower the standards. - Interviewers judgement regarding an applicant is often affected by the list of available applicants. - Sex, race and attitudes similar to those of the interviewer may lead to favourable evaluations. Guidelines to Interviewers : - Plan the interview - Establish an easy and informal relationship - Encourage the candidate to talk

Cover the ground as planned Probe where necessary Analyse career and interests to reveal strengths, weakness, patters of behaviour Maintain control over the direction and time taken for the interview.


Reference and Background Checks : - Many employers request names, addresses and telephone numbers or references for the purpose of verifying information and perhaps, gaining additional background information on an applicant. - Although listed on the application form, references are not usually checked until an applicant has successfully reached a sequential selection process. - Previous employers, known public figures, university professors, neighbours or friends can act as references. Organisations normally seek letters of reference or telephone references. It may be stated that the information gathered through references hardly influence selection decisions. The reasons are obvious, The candidate approaches only those persons who would speak well about him or her. People may write favourably about the candidate in order to get rid of him or her. People may not like to divulge the truth about a candidate, lest it might damage or ruin his/her career.

Selection Decision : - The other stages in the selection process have been used to narrow the number of candidates. - The final decision has to be made from the pool of individuals who pass the tests, interviews and reference checks. - The views of the line manager will be generally considered in the final selection because it is he/she who is responsible for the performance of the new employee. - The HR manager plays a crucial role in the final selection. Physical Examination : - After the selection decision and before the job after offer is made, the candidate is required to undergo a physical fitness test. - A job offer is, often, contingent upon the candidate being declared fit after the physical examination. - The results of the medical fitness test are recorded in a statement and are preserved in the personnel records.

30 It is necessary to detect if the individual carries any infectious diseases. The test assists in determining whether an applicant is physically capabilities which differentiate successful and less successful employees. Medical check-up protects applicants with health defects from undertaking work that could be detrimental to themselves or might otherwise endanger the employers property. Examination will protect the employer from workers compensation claims that are not valid because the injuries or illnesses were present when the employee was hired.

Job Offer : - The next step in the selection process is job offer to those applicants who have crossed all the previous hurdles. - Job offer is made through a letter of appointment. - A letter generally contains a date by which the appointee must report on duty. - The appointee must be given reasonable time for reporting. - This is particularly necessary when he or she is already in employment, in which case the appointee is required to obtain a relieving certificate from the previous employer. - The rejected applicants be informed about their non-selection. - Their applications may be preserved for future use, if any. Contracts of Employment : - After the job has been made and the candidates accept the offer, certain documents need to be executed by the employer and the candidate. - One such document is the attestation form. - This form contains certain vital details about the candidate which are authenticated and attested by him/her. Attestation form will be a valid record for future reference. - There is also a need for preparing a contract of employment. - Alternatively called employment agreements or simply bonds, contracts of employment serve many useful purposes. - Such contracts seek to restrain jobhoppers, to protect knowledge and information that might be vital to a companys healthy bottom line, and to prevent competitors from poaching highly valued employees. Evaluation of Selection Prorgramme : - The broad test of the effectiveness of the selection process is the quality of the personnel hired. - An organisation must have competent and committed personnel. - The selection process, if properly done, will ensure availability of such employees. - A selection programme can be evaluated by periodic audit.


Barriers to Effective Selection :

Perception : o Our inability to understand others accurately is probably the most fundamental barrier to selecting the right candidate. o Our limited perceptual ability is obviously a stumbling block to the objective and rational selection of people. Fairness : o Fairness in selection requires that no individual should be discriminated against on the basis of religion, region, race or gender. o The low numbers of women and other less-privileged sections of the society in middle and senior management positions & open discrimination on the basis of age in job advertisements and in the selection process would suggest that all the efforts to minimise inequity have not been very effective. Validity : o Validated test does not predict job success accurately. o It can only increase possibility of success. Reliability : o A reliable method is one which will produce consistent results when repeated in similar situations. Pressure : o Pressure is brought on the selectors by politicians, bureaucrats, relatives, friends and peers to select particular candidates.

Tests Meaning :
In is Any employment requirement is a test. The focus in this section is on specific tests because a number of employers feel that formal tests can be of great benefit in the selection process when properly used and administered. A number of different types of tests are used as part of the selection process A look at the most common types of tests follows.

Ability Tests :
Tests that assess an individuals ability to perform in a specific manner are grouped as ability tests. Sometimes further differentiated into aptitude and achievement tests.

Cognitive Ability Tests : o Measure an individuals thinking, memory, reasoning and verbal and mathematical abilities. o Tests such as these can be used t test applicants basic knowledge of terminology and concepts, word fluency, spatial orientation, comprehension and retention span and general and conceptual reasoning. Physical Ability Tests : o Measure individual abilities such Strength, endurance and muscular movement. o At an electric utility, line workers regularly must lift and carry equipment, climb ladders and perform other physical tasks. Psychomotor Tests : o Measure dexterity, hand-eye steadiness and other factors. coordination, arm-hand


Work Sample Tests : o Tests that require an applicant to perform a simulated job task. o Having an applicant for a financial analysts job prepare a computer spreadsheet is one such test. ASSESSMENT CENTERS : o When used to select managerial candidates, work sample tests are often administered as part of an assessment center, a comprehensive, standardized procedure in which multiple assessment techniques such as situational exercises and job simulations are used to evaluate individual employees for various purposes. Tests are. o The Leaderless group discussion : - Participants to given a problem to solve & are instructed to discuss it among themselves and arrive at a group decision within a specified period of time. - Their behaviour is rated by trained observers who evaluate such characteristics as communication skills, leadership, and persuasiveness. o Management Games : - Involve some activity such as buying and selling supplies, where individuals compete in trying to maximize gains. o In-basket : - Participants are provided with a set of memos, typical of those found in a managers in-basket. - The participants are required to prioritize and respond to the informations. - Attempts to measure planning and organising skills, judgement and work standards.


Personality Tests :
Is a unique blend of individual characteristics that affect interaction with the environment and help define a person. The Myers-Briggs test is another widely used test of this tupe. It is often referred as the Big Five personality traits, that are Conscientiousness Careful, Hardworking, Responsible. Agreeableness Cooperative, Good natured, Soft-hearted, Tolerant, Trusting Openness to Experience Flexibility in thought Open to new ideas Broad minded Extroversion Sociable Gregarious Talkative Emotional Stability Depression Anger Worry Insecurity

Honesty / Integrity Tests :

It includes standardized honesty/integrity tests and polygraphs. Retailers use honesty tests to screen out potentially dishonest individuals and decrease the incidence of employee theft. Overt Integrity Tests : o Inquire specifically about individual honesty and attitudes and behaviour regarding theft. Personality-Oriented Integrity Tests : o Uses psychological concepts such as dependability, respect for authority, and others. o Analyses of these dimensions are used to identify individuals whose psychological profile indicates greater or lesser integrity orientations.

Controversial & Questionable Tests :

Are used in employee selection. But experts warn of the legal and ethical problems in using these techniques for employee selection.

Graphology Tests : o Uses an analysis of an individuals handwriting. o Whether they write with a left or right slant, the size & boldness of the letters they form supposedly tell graphologists about the individuals personalities.


Psychics Tests : o Testing can provide useful insights on the abilities and characteristics of applicants that may not be determined through interviews or other means.

Medical Examination
Medical information on applicants may be used to determine the individuals physical and mental capability for performing jobs. Physical standards for jobs should be realistic, justifiable and geared to the job requirements. Workers with disabilities can perform satisfactorily in many jobs. In many places, they are rejected because of their disabilities, rather than being screened and placed in appropriate jobs. The Americans with Disabilities Act (ADA) prohibits the use of preemployment medical exams, except for drug tests, until a job has been conditionally offered. Also prohibits a company from rejecting an individual because of a disability and from asking job applicants any question relative to current or past medical history until a conditional job offer is made. Using drug testing as a part of the selection process has increased in the past few years, although some employers facing tight labour markets have discontinued drug testing. If used, employers should remember that the accuracy of drug tests varies according to the type of test used, the item tested and the quality of the laboratory where the test samples are sent. Impact of prescription drugs on test results, applicants should complete a detailed questionnaire on this matter before the testing. If an individual tests positive for drug use, then a second, more detailed analysis should be administered by an independent medical laboratory. Employers that use genetic screening tests do so for several reasons. The tests may link work place health hazards and individuals with certain genetic characteristics.

ADA & Medical Inquiries :

Drug Testing :

Genetic Testing :

35 Used to make workers aware of genetic problems that could occur in certain work situations. Use is to exclude individuals from certain jobs if they have genetic conditions that increase their health risks.

An index of selection effectiveness, reflecting the extent to which applicants would perform the job as well as expected , based on the inferences made during the selection process . As managers assess job applicants, they infer how well each applicant would perform the job, if hired. Validity refers to the appropriateness, meaningfulness and usefulness of these inferences. Validity is thus the technical term for effectiveness. It is concerned with the issue of whether applicants would actually perform the job as well as expected, based on the inferences made during the selection process. The closer applicants actual job performances match their expected performances, the greater the validity of the selection process. The manager must have a clear notion of the needed job qualifications and use selection methods that reliably and accurately measure these qualifications Content Oriented Strategy : o A method of collecting validity evidence that focuses on expert judgement regarding the extent to which selection devices are properly designed and provide an accurate assessment of the needed worker requirements. Criterion Related Strategy : o A method of collecting validity evidence that demonstrates statistically that someone who does well on a selection instrument is more likely to be a good job performer than someone who does poorly. Criterion-Related Strategy is calculated by statistically. This correlation coefficient is called a Validity Co-efficient . Validity Co-efficient : o An index of criterion-related validity reflecting the correlation between selection and criterion scores. Criterion-Related Validation study may be conducted in one of two ways, which as follows. Predictive Validation Study :

Achieving Validity :

Assessing and Documenting Validity :

36 o A Criterion-related strategy in which applicants selection scores are correlated with measures of their subsequent job performance. Concurrent Validation Study : o A Criterion-related strategy in which current employees selection scores are correlated with measures of their current job performance. Validity Generalisation Strategy : o A method of documenting the validity of a selection device by demonstrating that the same device has been consistently found to be valid in many other similar settings. To use validity generalization evidence, an organisation must present the following data. o Studies summarizing a selection measures validity for similar jobs in other settings. o Data showing the similarity between jobs for which the validity evidence is reported and the job in the new employment setting. o Data showing the similarity between the selection measures in the other studies composing the validity evidence and those measures to be used in the new employment setting.

Job Analysis and Design Meaning :

In simple terms, job analysis may be understood as a process of collecting information about a job. The process of job analysis results in two sets of data (i) Job description (ii)Job description.

Definition :
Job analysis is the process of studying and collecting information relating to the operations and responsibilities of a specific job. The immediate products of this analysis are job descriptions and job specifications . B.Flippo Edwin

Steps in Job Analysis :

Job Analysis A process of obtaining all pertinent Job Facts

Job Description - Job Title - Location - Job Summary - Duties - Machines, tools and equipment - Materials and forms used - Supervision given or received - Working conditions - Hazards Characteristics

Job Specification Education Experience Training Judgement Initiative Physical effort Physical skills - Responsibilities - Communication Skills - Emotional -


Unusual sensory demands such as sight, smell, hearing

Organise & plan for the programme : o The company must determine who will be incharge of the programme and must assign responsibilities to the designated persons. o A schedule should be established and a budget estimated for carrying out analysis of jobs. Obtain current job design information : o The job analyst should next obtain organisation charts, current position, descriptions and job specifications, procedure manuals and systems flow charts as are available. Conduct needs research : o The job analyst should investigate to determine which organisation, managers or staff require job analysis or output from job analysis. o The analyst should also determine for what purpose and to what extent jobs must be analysed and how the information will be used. Establish priorities in the jobs to be analysed : o The personnel department, working with managers of the various organisational units should identify the jobs to be analysed and each job analysis. Collect job data : o Collect data about the selected jobs are as they are currently being performed using established systematic techniques. Redesign the jobs, if necessary. Prepare job descriptions and job classifications : o Job information collected must be processed to prepare job descriptions.

38 o This is a written statement which describes the main features of the job along with duties, location and degree of risk involved. Developing job specifications : o This step involves conversion of the job descriptions in terms of human qualifications,traits of temperament, physicl and psychological attributes required for successful performance of the job. Three types of analysis o Job oriented, Worker-oriented and combined. Analysis of jobs based on description of the tasks required for successful performance is called job-oriented. Analysis based on worker behaviour-what the worker does- is called worker oriented analysis. Usually a combination of both types of analysis is used.

The Process of Job Analysis :

Strategic Choices Gather Information Process Information Job Description Job Specification Uses of Job Description and Job Specification : Personnel Planning Performance Appraisal Hiring Training and Development Job Evaluation and Compensation Health and Safety Employee Discipline Work Scheduling Career Planning

Strategic Choices : With regard to job analysis, an organisation is required to make atleast 5 choices. o The extent of employee involvement in job analysis : - Employees are often asked to supply vital information about the contents of job, given their familiarity with it. - To what extent employees need to be involved is a bebatable point. o The level of details of the analysis : - As in time and motion studies, to broad as in analysing jobs based on general duties. - The level of analysis affects the nature of the data collected. - The level of details required in job analysis also depends upon the purpose for which job-related details are being collected.

o Timing and frequency of analysis : - When, (i) an organisation is newly established and the job analysis is initiated for the first time (ii) a new job is created in an established company (iii) a job is changed significantly due to change in technology, methods, procedures or systems. o Past-oriented Vs. future-oriented job analysis : - Information describes how the job has been done in the past and the manner in which it is being currently done. - A future orientation can be given to the job analysis and predictions may be made as to how the job will be done in future and the way it should be done. o Sources of job data : - Job analyst should look for information about a job is in the job-analysis data that already exist


Purposes / Uses of Job Analysis :

HRP Recruitment & Selection Training & Development Job Description Job Analysis Job Specification Remuneration Performance Appraisal Personnel Information Safety and Health HRP : o Determines as to how many and what type of personnel will be needed in the near future. The number and the type of personnel are determined by the jobs which need to be staffed. o Job-related information is, therefore necessary for HRP. Recruitment & Selection : o Recruitment needs to be preceded by job analysis. Job Evaluation

40 o It helps the HR manager to locate places to obtain employees for openings anticipated in the future. o Similarly, selecting a qualified person to fill a job requires knowing clearly the work to be done and the qualifications needed for someone to perform the work satisfactorily.. Training & Development : o It can be designed depending on the job requirements. o Selection of trainees is also facilitated by job analysis. Job Evaluation : o It involves determination of relative worth of each job for the purpose of establishing wage and salary differentials. o Relative worth is determined mainly on the basis of job description and job specification. Remuneration : o It helps determine wage and salary grades for all jobs. o It involves fringe benefits, bonus and other benefits. o A perception of inequity is a sure way of demotivating an employee. Performance Appraisal : o It involves assessment of the actual performance of an employee against what is expected of him/her. Personnel Information : o Maintain computerised personnel information systems, such information useful for improve administrative efficiency by speeding up the provision of data, by reducing the resources required to o carry out routine administration. Safety & Health : o The process of conducting a detailed job analysis provides an excellent opportunity to uncover and identify hazardous conditions and unhealthy environmental factors.

Methods of Collecting Job Data :

Observation Interviews Questionnaire

Job Data Checklists Observation : Technical Conference Diary

o o o o

41 In this, job analyst carefully observes the job holder at work and records what he or she does, how he or she does, and how much time is needed for completion of a given task. It is simple. The data collected are accurate because of direct observation. The analyst needs to be trained to carefully observe and record the competence of a job incumbent. Better results will be available when the observation method is used along with other method is used along with other methods of job analysis.

Interview : o A structured interview form is used to record the information. o During the interview, the analyst must make judgements about the information to be included and its degree of importance. o It is a time consuming. o The effectiveness of the interview method depends on the interviewer and on the ability of the job holder to make meaningful responses. Questionnaire : o Job holders fill in the given structured questionnaire, which are then approved by their supervisors. o It filled in questionnaires offer enough data on jobs. o The questionnaire method is that information ona large number of jobs can be collected in a relatively short period of time. o It helps save time and the staff required to carry out the programme. o accuracy of the information obtained through the questionnaire. Checklists : o It is similar to a questionnaire, but the response sheet contains fewer subjective judgements and tends to be eitheryes or-no variety. o It can cover as many as 100 activities and job holders tick obly those tasks that are included in their jobs. o The specialists who prepare the list must collect all relevant information about the job concerned. o It will be basis for tabulating job-related data. o It is useful in large organisations that have a large number of people assigned to one particular job. Technical Conference Method : o In this method, services of supervisors who possess extensive knowledge about a job are used. o Here, a conference of supervisors is used. o The discussion which provides details about jobs.

42 Dairy Method : o Job holders to record in detail their activities each day. o If done faithfully, this technique is accurate and eliminates errors caused by memory lapses the job holder makes while answering questionnaires and checklists. o It is time consuming, because the recording of tasks may have to be spread over a number of days. It also engages considerable time of a production worker. Quantitative Techniques : (PAQ) o Position Analysis Questionnaire : - It is a highly specialised instrument for analysing any job in terms of employee activities. - It can be used to analyse almost every job. - This is provides a comparison of a specific job with other job classifications, particularly for selection and remuneration purposes. o Management Position Description Questionnaire : - It containing 208 items relating to managerial responsibilities, restrictions, demands and other miscellaneous position characteristics. o Functional Job Analysis : (FJA) - It is a worker-oriented job analytical approach which attempts to describe the whole person on the job. - It includes a fundamental distinction must be made between what has been done and what employees need to do to get the things done. - And Employees draw onphysical resources, in relation to data, employees draw on mental resources. And in relation to people, employees draw on interpersonal resources.

Job Description :
It is an organised factual statement of job contents in the form of duties and responsibilities of a specific job. Preparation of job description is necessary before a vacancy is advertised. Document discloses what is to be done, how it is to be done and why it is to be done. The contents of job description have been discussed below : Job Title : - It should be short, definite and suggestive of the nature of the job. Job Location : - It is necessary to give the location of the job. By location we mean the name of the department where the job under consideration exists. Job Summary :

43 - A short paragraph succinctly summarising the tasks performed by the employee is helpful for subsequent convenient identification of the job. Duties to be performed : - Each task performed should be written out and estimate made of the percentage of the time that is devoted to the performance of each task. Machines, Tools, Materials : - Are used in the performance of the job should also be included in the job description. - This is necessary since these items tend to indicate the nature and complexity of the job. Relation to other jobs : - Clear-cut relation of the job under consideration with other jobs in the organisation will help to understand the nature of the job well. Working Environment : - The working conditions, hazards and other characteristics of the physical surroundings within the working area should be described to help in subsequent interpretation of job evaluation.

Preparation of Job Descriptions :

By observation of the job being performed. By discussion with the supervisor of the job. By requesting the supervisor of the job to fill in a questionnaire describing the job. By discussion with some of the employees working on the job. By requesting some of the employees working on the job to fill in the questionnaire describing the job. It is a document which states the minimum acceptable norms necessary to perform a job properly. It translate the job descriptions into human qualifications, and sometimes level of performance required for successful performance of the job. It serve as a guide in hiring and to be used in job evaluation. In hiring, they are presumed to be a partial guide to the characterists sought in the application blanks, test, interviews and checking or references. Admitted impossibility of presenting a completely objective and accurate standard of personnel, some firms have discarded the idea of preparing job specifications.

Job Specifications :

Job Design :
Provides job-related data as well as the skills and knowledge expected of the incumbent to discharge the job, job design, then

44 involves conscious efforts to organise tasks, duties and responsibilities into a unit of work to achieve certain objectives. It integrates work content (Tasks, functions, relationships), the rewards (extrinsic an intrinsic) and the qualifications required (skills, knowledge, abilities) for each job in a way that meets the needs of employees and the organisations. Feedback Organisational Factors Environmental Factors Beharvioural Factors Organisational Factors : o Characteristics of Task o Work Flow o Ergonomics o Work Practices Environmental Factors : o Employee abilities and availability o Social and Cultural Expectations Behavioural Elements : o Feed back o Autonomy o Use of Abilities o Variety Job Design Productive and Satisfying Job

Factors Affecting Job Design :

Techniques of Job Design :

Work Simplification Job Rotation

High Performance Work Design

Job Design

Job Enlargement

45 Autonomous Job Teams Enrichment Work Simplification : o In this, the job is simplified or specialised. o A given job is broken down into small sub-parts and each part, is assigned to one individual. o To be more specific, work simplification involves (i) mechanical pacing of work (ii) repetitive work processes, (iii) working on only one part of a product (iv) predetermining tools and techniques (v)restricted interaction among employees and (vi) few skill requirements. Job Rotation : o The practice of shifting people from one job to another with in a working group so that there is some variety and relief from the boredom routine. o It means lateral transfer. o It may also be on a situational basis-that is, by moving the person to another activity when the first is no longer challenging to him, or to meet the needs of work scheduling. o It is an excellent means of broadening the work experience of employees and also turning specialists into generalists. o It reduces boredom and monotony and stimulates development of new ideas. Job Enlargement : o Means Assignment of varied tasks or duties of the jobs of employees all on the same level. o Simply adding zero to zero meaning that one set of boring tasks is simply added to another set of boring tasks. o It serves to increase variety, lengthens work cycle time, provides wholeness and identity with the task and increases the knowledge necessary to perform. o This will reduce his boredom and make him satisfied with the job. Job Enrichment : o Increasing the contents of a job or the deliberate up grading of responsibility, scope and challenge in work. o It is a motivational techniques. o It suggests that jobs be redesigned so that intrinsic satisfaction is derived formed doing the job by adding functions from other autonomy and pride to the employee. o In order to enrich the employee, Give sufficient freedom to employees in deciding about work methods, pace, sequence Add new tasks

46 Increase responsibility Encourage participation Provide feedback to the employees Make the personnel understand how task contribute to a finished product of the enterprises. Autonomous or Self-directed Teams : o Empowerment results in self-directed work teams. o A self-directed work team is an intact group of employees who are responsible for a whole work process or segment that delivers a product or service to an internal or external customer. o Highly effective teams are composed of groups of committed individuals who trust each other, have a clear sense of purpose about their work; are effective communicators within and outside the team; make sure that everyone in the team is involved in decisions affecting the groups. High-Performance Work Design : o It is a means of improving performance in an environment where positive and demanding goals are set. o It starts form the principle of autonomous group working and develops an approach which enables groups to work effectively together in situations where the rate of innovation is high.

Recruitment Meaning & Definition :

In simple terms, recruitment is understood as the process of searching for and obtaining applicants for jobs, from among whom the right people can be selected. It is the process of finding and attracting capable applicants for employment. The process begins when new recruits are sought and ends when their applications are submitted. The result is a pool of applicants from which new employees are selected.

Purpose & Importance :

Determine the present and future requirements of the organisation in conjunction with its personnel planning and jobanalysis activities. Increase the pool of job candidates at minimum cost. Help increase the success rate of the selection process by reducing the number of visibly under qualified of overqualified job applicants. Help reduce the probability that job applicants, one recruited and selected, will leave the organisation only after a short period of time.

47 Meet the organisations legal and social obligations regarding the composition of its workforce. Begin identifying and preparing potential job applicants who will be appropriate candidates. Increase organisational and individual effectiveness in the short term and long term. Evaluate the effectiveness of various recruiting techniques and sources for all types of job applicants.

Factors Governing / Influencing Recruitment :

External Forces : Supply and demand Unemployment rate Labour market Political-social Sons of soil Image Internal Forces : Recruitment Policy HRP Size of the firm Cost Growth and expansion


External Factors : Supply & Demand : o Of specific skills in the labour market. o If the demand for a particular skills is high relative to the supply, an extraordinary recruiting effort may be needed. o The demand for programmers and financial analysis is likely to be higher than their supply, as opposed to the demandsupply relationship for non-technical employees. Unemployment rate : o In a given area is high, the companys recruitment processes may be simpler. o Increased size of the labour pool provides better opportunities for attracting qualified applicants. o As the unemployment rate drops, recruiting efforts must be increased and new sources explored. Labour -market : o So far as recruitment for executive and professional positions is concerned, conditions of all India market are important. Political and Legal considerations : o Reservation of jobs for SC, STs minorities and other backward classes is a political decision. o There is a strong case of giving preference to people hailing from less-advantaged sections of the society. o Reservation has been accepted as inevitable by all sections of the society.

48 Sons of the soil : o Is another political factor. o Political leaders clamour that preference must be given to the people of their respective states in matters of employment Companys Image : o Often it is not the money that is important. o It is the perception of the job-seekers about the company that matters in attracting qualified prospective employees. Internal Factors : Recruiting policy : o Recruiting internally or externally. o The policy is to prefer internal sourcing, as own employees know the company well and can recommend candidates who fit the organisations culture. Temporary and Part-time : o An organisation hiring temporary and part-time employees is in a less advantages position in attracting sufficient applications. HRP : o It takes time to examine the alternatives regarding the appropriate sources or recruits and the most productive methods for obtaining them. o Once the best alternatives have been identified, recruiting plans may be made. o Effective HRP greatly facilitates the recruiting efforts. Size : o Having influence on the recruitment process. o An organisation with one hundred thousand employees will find recruiting less problematic than an organisation with just one hundred employees. Cost : o Recruiting costs are calculated per new hire and the figure is considerable nowadays. o Recruiters operate within budgets.

Methods of Recruitment : Internal Recruitment Computerised Career Progression Systems : o One method of internal recruiting is, when a job becomes vacant, the computer searches its skills file in order to identify employees having the requisite skills for the vacant job. o Candidates can be found quickly using this method.

49 o The firm can also identify a broad spectrum of candidates using this approach and thus are not limited to candidates working in the department where the vacancy exists. Supervisor Recommendations : o Hiring supervisors can also identify internal candidates if they are asked to nominate one or more people for consideration. o Supervisors will typically nominate individuals whose work capabilities are well known to them. o This method is very popular among supervisors. Job Posting : o It is the most commonly used approach to internal recruitment, at least at the non-managerial level. o Here, a job vacancy notice is posted for all employees to see. o The notice describes the job, salary, work schedule and necessary worker qualifications. o All employees possessing these qualifications may apply or bid for the job. o The HRM department and/or the hiring manager then screens the bids. o The most qualified applicants are chosen for interviews. o It is not easy to develop an effective job posting system. o From the employees point of view, the most important features of the posting system concern how well they are treated during the job interview and the amount of helpful career counselling they receive. Career Development Systems : o Represent an alternative approach to filling job opening from within. Rather than encouraging all qualified employees to bid for a job, a firm may place some fast-track or highpotential employees on a career path where they are groomed or trained for certain targeted jobs. o It ensure that someone is always ready to fill a position when it becomes open External Recruitment Employee Referrals : o When a position becomes vacant, firms often use employee referrals to fill them. o HR professionals ask employees to solicit applications from qualified friends and associates. o In some instances, Companies will offer an incentive, such as a bonus or prize, for each referral actually hired. o Applicants referred by employees tend to perform better and remain with the company longer than applicants recruited by other means.

50 o Employees tend to be good recruiters because they know a lot about both the job being filled and the individual, and can therefore accurately judge fit between the two. o Additionally, employees make good recruiters because, believing their reputation is on the line, they are encouraged to refer only the highest quality applicants. Applicant Initiated Recruitment : o Organisations often receive unsolicited applications or resumes from individuals interested in working for the company, so active recruiting is not always necessary. o It is most prevalent in firms that enjoy a reputation for being a good place to work in terms of compensation policies, working conditions, employee relations, and/or participation in community activities. Help-Wanted Advertisements : o The appropriate medium for placing an ad depends primarily on the geographic recruitment area. o When applicants in the local geographic area are being sought, a firm may place an ad in the local newspaper, advertise on TV or Radio or place notices on billboards. o To reach a broader geographic area, ads may be placed in nationally distributed newspapers, magazines professional/trade journals, or one the Internet. o It allow an employer to reach a large audience in a relatively short period of time. Employment Agencies and Executive Search Firms : o Employment agencies and executive search firms represent another option for recruiting external job applicants. o An employer initiates the recruitment process by contacting the appropriate agency/firm and telling it of the qualifications needed for the job in question. o The agency/firm assumes the task of soliciting and screening applications, and then refers top applicants to the employer for further screening. Public Employment Agencies : o Under federal law, Individuals who receive unemployment compensation must register for work with the public agency in their state. o It provides personnel most frequently for clerical and bluecollar jobs. o Cost is low because the agency does not charge employers a fee. Private Employment Agencies : o Have the resources to fill a wider variety of jobs.

51 o May be used to fill technical and lower-level managerial jobs. o Candidates register with the agency voluntarily and thus may be more committed than public agency candidates to accepting a job offer. o The agency charges a fee for its services, usually paid by the company when higher-level positions are being filled. Executive Search Firms : o Specialize in the recruitment of mid- and senior-level managers with salaries. o Firms charge an employer a rather large fee for their services. o Fee payment is usually required even if non of the firms candidates is actually hired. Campus Recruiting : o Involves the firms recruiters visiting various college and university campuses to recruit individuals for positions requiring a college degree. Steps in the Campus Recruitment Process : Conduct a recruitment analysis : - The firm performs a recruitment analysis to estimate the specific new talent requirements needed in the long and short term. Prepare a position requisition : - Each new position request is formalized into a requisition that describes the job responsibilities and the skills and abilities needed for the job. Select Schools / Colleges : - The recruiting schools / colleges are chosen, and the recruiting schedule is set in the summer. Conduct Campus Interviews : - Recruiters conduct campus interviews during the fall and spring semesters. Screen candidates : - Recruiters invite the best candidates to attend on-site interviews. Evaluate Recruitment : - The recruiting effort is evaluated by the HRM dept. to determine whether job vacancies still exist, the quality of the new hires, and the cost efficiency of the program.

Online Recruiting / E-Recruiting Methods : o Is using the Internet to advertise jobs and find resumes of job seekers. o There are a number of websites offering these services.

52 o Compared to newspaper advertising, online recruiting is much faster and reaches a much larger audience; within minutes of posting, the job vacancy be viewed by millions of people. E-Recruitment Methods : Job Boards : - Numerous job boards, such as provide places for employers to post jobs or search for candidates. - Checking out compensation levels and what job availability exists in their areas of interest. Professional / Career Web Sites : - Many professional associations have employment sections at their Web sites. - A number of private corporations maintain specialised career or industry web sites in order to focus on IT, telecommunications, engineering, physician, or other areas. - Using these more targeted web sites limits somewhat the recruiters, search time and efforts. - Posting jobs on such Web sites likely to target applicants specifically interested in the job field and may reduce the number of less-qualified applicants who actually apply. Employer Web Sites : - Numerous employers have included employment and career information as part of their organisational Web Sites. - Job seekers are encouraged to e-mail resumes or completer on-line applications.

Choosing the Right Method : The type of job being filled How quickly the jobs needs to be filled The geographic region of recruitment The cost of implementing the recruitment method

Identifying Recruitment Needs : An outgoing incumbent must be replaced. Additional positions are added in response to increased workload. A newly needs created job is established.

Recruiting Evaluation : Evaluating Recruiting Costs & Benefits : - The costs and benefits associated with them should be analysed.

53 The costs includes both direct cost (advertising, recruiters salaries, travel, telephone) and indirect cost (involvement of operating managers, public relations, image)

Evaluating Time Required to Fill openings : - The length of time it takes to fill openings is one of the most common means of evaluating recruiting efforts. - If opening are not filled quickly with qualified candidates, the work and productivity of the organisation likely suffer. Evaluating Recruiting Quantity and Quality : Quantity of Applicants : - The goal of a good recruiting program is to generate a large pool of applicants from which to choose, quantity is a natural place to being evaluation. Quality of Applicants : - The issue arises as to whether or not the qualifications of the applicant pool are sufficient to fill the job openings. Yield Ratios : - Which compare the number of applicants at one stage of the recruiting process to the number at another stage. - The result is a tool for approximating the necessary size of the initial applicant pool. Selection Rate : - The percentage hired from a given group of candidates. Acceptance Rate : - Helps identify how successful the organisation is at hiring the candidates that it wants to employ. Success Base Rate : - A longer-term measure of recruiting effectiveness is to track the success rate of applicants. This rate indicates whether the quality of the employees hired results in employees who perform well and have low turnover.

Increasing Recruiting Effectivness : Applicant tracking systems : - To collect data on applicants and provide various analyses. Realistic Job Previews : - That provide job candidates accurate details about the organisation and the job. Responsive Recruitment process : - In which applicants receive timely responses, get feedback on the process when promised, and are treated with consideration.

An individual cannot become proficient at a skill without a practice.

54 Trainees learn better when given the opportunity to practice, as evidenced by the finding that people remember about 25% of what they hear, 45% of what they hear and see, and 70% of what they hear see and do. Practice is essential to effective learning because it strengthens the stimulus response bond; that is, the necessary response to a situation becomes more automatic with practice. Trainers must address two practice-related issues when designing an instructional program. One is whether the practice sessions should be distributed or massed. Distributed Practice : - Refers to dividing the practice into segments or sessions. - It is akin to preparing for a college exam by keeping up with material on a daily basis. - It is the studying time over the course of the semester. Massed Practice : - Means providing all the practice in one longer session. - It is akin to cramming for an exam the night before it is given. - Usually preferred because it leads to better long-term retention.


The competitive pressures facing organisations today require employees whose knowledge and ides are current and whose skills and abilities can deliver results. An organisations compete and change, training becomes even more critical than before. Employees who must adapt to the myriad of changes facing organisations must be trained continually in order to maintain and update their capabilities. Also, managers must have training and development to enhance their leadership skills and abilities. In a number of situations, employers have documented that effective training produces productivity gains that more than offset the cost of the training.

Definitions of Training :
Training is something we hope to integrate into every managers mindset. - Chris Landauer

55 Training is the act of increasing the knowledge and skills of an employee for doing a particular job . - Edwin B. Flippo

Need for Training :

Changing Technology, Technology is changing at a fast pace : - The workers must learn new techniques to make use of advanced technology. - Training should be treated as a continuous process to update the employees in new methods and procedures. Quality Conscious Customers : - Due to customers quality conscious, the quality of products must continuously improved through training of workers. Greater Productivity : - It is essential to increase productivity and reduce cost of production for meeting competition in the market. - Effective training can help increase productivity of the workers. Stable Workforce : - Training creates a feeling of confidence in the minds of the workers. - It gives them a security at the work place. As a result, labour turnover and absenteeism rates are reduced. To increase the knowledge of workers in doing specific jobs. To impart new skills among the workers systematically so that they learn quickly. To improve the overall performance of the organisation. To make the workers handle materials, machines and equipment efficiently and thus to check wastage of time and resources. To reduce the number of accidents by providing safety training to workers. To prepare workers for higher jobs by developing advanced skills in them.

Objectives of Training :

Training Vs. Development

Training Development

- It means learning skills and - It means the growth of an knowledge for doing a particular employee in all respects. It job. It increases job skills. shapes attitudes. - The term training is generally used to denote imparting - The term development is specific skills among operative associated with the overall workers & employees. growth of the executives.

56 - Training is concerned with main training and improving current - Executive Development seeks to job performance. Thus, it has a develop competence and skills short term perspective. for future performance. Thus, it - Training is job-centred in nature. has a long-term perspective. - Development is career-centred in - The role of trainer or supervisor nature. is very important in training. - All development is selfdevelopment. The executive has to be internally motivated for self development.

Benefits of Training
Quick learning : - Training helps to reduce the learning time to reach the acceptable level of performance. - The employees need not learn by observing others and waste time if a formal training programme exists in the organisation. Higher Productivity : - Training increases the skill of the new employee in his performance of a particular job. - An increase in skill usually helps increase in both quantity and quality of - output. Standardisation of Procedures : - Standardisation will make high levels of performance. - Employees will work intelligently and make fewer mistakes when they possess the required know-how and have an understanding of their jobs. Less Supervision : - Training reduces the need for detailed and constant supervision. - A well-trained employee is self-reliant in his work because the knows what to do and how to do. Economical Operations : - Trained personnel will be able to make better and economical use of materials and equipment. - Wastage will also be low. - The rage of accidents and damage to machinery & equipment will be kept to the minimum by the trained employees. Higher Morale : - The good training programme will mould employees attitudes towards organisational activities and generate better cooperation and greater loyalty. - With the help of training, dissatisfactions, complaints absenteeism and turnover an efficient and co-operative workforce.

57 Preparation of Future managers : - Training can be used in spotting out promising men and preparing them for promotion. - It is better to select and train from within the organisation rather than seek skilled employees from the outside sources. Better Management : - Maintaining higher standards of quality, building a satisfactory organisation structure, delegating authority and stimulating employees are all assisted by effective training.

Advantages of Training to employees

Confidence (Training creates a feeling of confidence in the minds of workers) New skills (Training develops skills which serves as a valuable personal asset of a worker) Promotion (Training provides opportunity for quick promotion and self-development) Higher Earnings (Training helps in earning higher remuneration and other monetary benefits to the workers as their productivity is increased) Adaptability (Training develops adaptability among workers. They dont worry when work procedures and methods are changed) Increased Safety (Trained workers handle the machines safely & know the use of various safety devices in the factory, thus they are less prone to accidents)

Gaining Competitive Advantages Through Training

Improving quality through Employee Training : - To improve drastically the quality of its products and services, this meant it had to change the behaviour of its employees. - To be initiated several training courses designed to teach employees what they needed to do to fulfil their new roles in a quality improvement program. - To be provided workers with necessary on-the-job reinforcement. - Unit managers and their employees solving skills. - After training, the employees were encouraged to practice these new skills on the job. Linking Training & Development : - An organisations training and development practices ensure that the employees receive the necessary instruction. - Training focuses on current jobs, whereas development prepares employees for future jobs.

58 A firms training and development practices can contribute to competitive advantage by enhancing recruitment, building worker competence, and reducing the likelihood of unwanted turnover. Enhancing Recruitment : Companies with excellent training programs stand the best chances of landing top candidates. Job candidates are becoming increasingly interested in the type of training a company offers. Increasing Worker Competence : Training & development programs are designed to make workers better employees by bringing about permanent changes in their knowledge base, attitudes and skills. Workers who lack the needed competencies can create problems that undermine efficient operations. Increasing the competence of New Employees : To meet the needs of new workers, HRM dept. typically offer 3 types of training: technical, orientation & literacy training. Technical training such as perform specific fire-fighter duties, perform fire extinguisher and etc. Orientation training to learn about their jobs, the company, and its policies and procedures. New employees may also need literacy training in such areas as writing, basic arithmetic, listening/following oral instructions, speaking and understanding manuals, graphs and schedules. In addition to improving job performance, literacy training often provides individuals with abilities they will need to benefit from more advanced training such as learning how to operate a new piece of technical equipment. Increasing the Competence of Current Workers : Current workers may also require certain types of training or retraining, classified as Remedial, Changerelated & Developmental Instruction. Most qualified applicants are deficient in some skills and may thus need Remedial training. Eg: Professor, hired because of an excellent publication record, may lack certain teaching skills. Workers may need Change-related training to keep up to date with various types of changes dealing with technological advances, new laws or procedures, or a change in the organisations strategic plan.

59 Companies also need Instructional programs for developmental purposes. It provides employees with the appropriate skills needed for higher level positions to which they may eventually be promoted.

Reducing the Likelihood of Unwanted Turnover : Poor job performance also causes turnover: Workers may be discharged because they lack requisite job skills. Although in some instances such individuals should be terminated, training can prevent unnecessary terminations by, - Building employee job skills, thereby improving job performance. - Improving supervisors capabilities for managing underperforming workers. - Reeducating people whose skills have become obsolete, allowing the organisation to assign them to new job responsibilities. Effective training programs can reduce turnover by strengthening employee loyalty. The Cost Efficiency of Training & Development Practices : Most organisations spend a great deal of time and money on training and development because these practices can have such an important bearing on competitive advantage, - The average employer receives 15 hrs of training per year; the total amount of hrs spent in training in the US is 15 billion per year. - The average large company spends $527,000 per year on training and development; the average small company spends $218,000. - Nationwide, $55 billion is spent annually on formal training programs. - The number of employees receiving employersponsored education has risen from 6-20 million between 1983 & 1995. Employers expect that these investments of time and money will return sizable dividends. Unfortunately, however, the training and development practices of many organisations fail to result in any real benefit to employees or to the company itself.

Strategic Training
Training adds value to an organisation by linking training strategy to organisational objectives, goals and business strategies. Strategic training focuses on efforts that develop competencies, value and competitive advantages for the organisation.

60 This basically means that training and learning interventions must be based on organisational strategic plans and HR planning efforts. Strategic training also implies that HR and training professional needs to be involved in organisational change and strategic planning in order to develop training plans and activities that support top managements strategic decisions. The Training is Strategic when it : o Develops employee capabilities o Encourages change o Promotes continuous learning o Creates / shares new knowledge o Facilitates communication

Linking Training to Business Strategies : A low-cost leader business strategy attempts to increase market share by focussing on the low cost of the firms products or services, compared to competitors. In contrast, firms with a differentiation business strategy try to make their products or service, new technology or perceived distinctiveness. If a company is trying to distinguish itself from its competition based on customer service quality, then significant customer service training is needed to support the firms strategic thrust. Developing a Strategic Training Plan : The framework for developing a strategic training plan contains 4 major stages, which as follows : Strategize : - HR & Training managers must first work with management to determine how training will link strategically to the strategic business plan, with an eye toward employee and organisational performance improvement. Plan : - As part of planning, the objectives and expectations of training should be identified and specific, measurable learning objectives created in order to track the effectiveness of the training. Organize : - The training must be organised by deciding how training will occur, obtaining the resources needed, and developing the training interventions. All these activities culminate in the actual training. Justify : - Measuring and evaluating the extent to which training meets the objectives set will legitimize training efforts. Past mistakes in training can be explicitly identified in this phase.

61 Learning from these mistakes provides an effective way to improve future training. The Training Process : Effective implementation of strategic training requires use of a systematic training process. The four phases of the training process : (i)Assessment (ii)Design (iii)Delivery and (iv)Evaluation. Using such a process reduces the likelihood that unplanned, uncoordinated and haphazard training efforts will occur.

- Analyze training needs Training - Identify Training Training objectives and criteria training

- Pretest Trainess - Select training

Schedule Conduct Monitor

- Plan training content EVALUATION

- Measure training outcomes - Compare outcomes to Objectives/Criteria

Sources of Training Needs Assessment :


Grievances Observations Accidents Complaints Waste/Scrap Exit Interviews Training observations Equipment Use

Employee KSAs (Knowledge, Skill & Ability) Job Specification


Tests Questionnaires Records Attitude Surveys Assessment Centres Performance appraisals

Training Design

Learning : The Focus of Training

Working in organisations should be a continual learning process, and learning is the focus of all training activities. There are three primary considerations when designing training: Determining learner readiness.

62 Understanding different learning styles. Designing training for transfer.

Learning Readiness
This readiness means they must have the basic skills necessary for learning, the motivation to learn and possess self-efficacy. Ability to Learn : - Learners must possess basic skills, such as fundamental reading & math proficiency and sufficient cognitive abilities. - Employers attempting to deal with the lack of basic employee skills can approach the problem in several ways, i. Offer remedial training to people in their current workforce who need it. ii. Hire workers they know are deficient and then implement specific workplace training. iii. Work with schools to help better educate people for jobs. Motivation to Learn : - A persons desire to learn training content is referred to a as motivation to learn and is influenced by multiple factors. - For example, the students motivation level also may be influenced by the instructors motivation and ability, friends encouragements to do well, classmates motivation levels, the physical classroom environment and the training methods used. Self-Efficacy : - Which refers to a persons belief that he/she successfully learn the training program content. - For learners to be ready and receptive to the training content, they must feel like they can learn it.

Learning Styles :

In designing training interventions, trainers also should consider individual learning styles. For example, auditory learners are ones who learn best by listening to someone else tell them about the training content. Others are tactile learners who must get their hands on & use training resources. Others are visual learners who think in pictures and figures and need to see the purpose and process of the training. Adult Learning : - Malcolm Knowles on adult learning suggests 5 principles for designing training for adults. i. Have the need to know why they are learning something.

ii. Have a need to be self-directed. iii. Bring more work-related experiences into the learning process. iv. Enter into a learning experience with a problem-centred approach to learning. v. Are motivated to learn by both extrinsic and intrinsic factors. Behaviour Modeling : - Copying someone elses behaviour. - It is appropriate for skill training in which the trainees must use both knowledge and practice. - Behaviour modelling is used extensively as the primary means for training supervisors and managers interpersonal skills. Reinforcement & Immediate Confirmation : - People tend to repeat responses that give them some type of positive reward and avoid actions associated with negative consequences.


Transfer of Training
Trainers should design training interventions for the highest possible transfer of training. Effective transfer of training meets two conditions. First, the trainees can take the material learned in training and apply it to the job context in which they work. Second, employees maintain their use of the learned material over time. A number of methods can increase the transfer of training. Offering trainees an overview of the training content and process of prior to the actual training seems to help with both short-term and longer-term training transfer. One specific way to aid transfer of training to job situations is to ensure that the training mirrors the job context as much as possible.

Types of Training
o Required & regular training : - Complies with various mandated legal requirements & serves as training for all employees. (e.g. Occupational Safety & EEO) o Job / Technical training : Enables employees to perform their jobs, tasks and responsibilities well. (eg.Product knowledge, Technical processes & customer relations) o Interpersonal& problem-solving training : Addresses both operational and interpersonal problems and seeks improve organisational working

64 relationships. (Interpersonal communication, managerial/supervisory skills, Conflict resolution) o Developmental& innovative training : Provides a long-term focus to enhance individual & organisational capabilities for the future. (e.g. Business practices, executive development, organisational change) Orientation : Training for New Employees : - It is the planned introduction of new employees to their jobs, co-workers and the organisation. - It requires cooperation between individuals in the HR unit and other mangers & supervisors. - Effective orientation achieves several key purposes : i. Establishes a favourable employee impression of the organisation & the job. ii. Provides organisation and job information iii. Enhances interpersonal acceptance by co-workers iv. Accelerates socialization and integration of the new employee into the organisation. v. Ensures employee performance and productivity begin more quickly. - It is the planned introduction of new employees to their jobs, co-workers and the organisation. Legal Issues & Training : - A number of legal issues must be considered when designing and delivering training. - A primary concern centres on the criteria and practices used to select individuals for inclusion in training programs, making sure those criteria are job related and do not unfairly restrict the participation of protected-class members. - Another contemporary issue is the use of training contracts hereby employers require employees participating in expensive training to sign such contracts in order to protect the costs and time invested in specialized employee training in order to protect the costs and time invested in specialized employee training.

Training Delivery
o Once training has been designed, then the actual delivery of training can begin. o It is generally recommended that the training be conducted on a trial basis in order to ensure that the training meets the needs identified and that the design is appropriate. o Regardless of the approaches used, a variety of considerations must be balanced when selecting training methods. o The common variables considered are :

65 Nature of Training Subject matter Number of trainees Individual vs. Team Self-paced vs. Guided Training resources Costs Geographic locations Time allotted Completion timeline

HRM Issues & Practices The Instructional Process :

Why have the training and development practices of so many organisations failed to contribute to competitive advantage ? Simply put, the way companies carry out instructional programs is ineffective. The followings are the steps involved in an effective instructional process & indicate how they should be carried out. The training material and content must be relevant. Training programs must contain material & exercises that help participants learn the knowledge, skills and abilities necessary for effective job performance. When training programs are not job relevant, trainees will fail to acquire the skills or knowledge needed for job.

Step 1: Deciding What to Teach :


Assessing Training Needs :

A Training Need : - A problem, such as poor job performance or inadequate skill level that can be rectified through training. Performance Analysis : - A method of training needs analysis in which managers identify their employees performance deficiencies and determine which of these deficiencies can be effectively remedied through training.

Determining Training Objectives :

Training Objectives : - Statements describing what the trainees should be able to do as the result of training.

Step 2: Deciding How to Maximize Participant Learning :

Once the firm identifies appropriate training needs and objectives, trainers must prepare instructional materials.

66 Before discussing the specific training methods, we first examine the principles that program developers should follow to ensure that learning takes place. To maximize learning, the program should be presented in a way that, - Gains & maintains the trainees attention - Provides the trainees with an opportunity to practice the skills being taught & - Provides the trainees with feedback on their performance.

Learner Attention :

Learners must be attentive to the program The trainer must thus design and present the program in a way that gains and maintains their attention. To gain their attention, trainees must realize the importance and relevance of the training. Trainers must demonstrate how the content of the program relates to their jobs and how their attendance will benefit them. Trainers can maintain the attention of the trainees by varying the pace and kind of material presented. They should avoid using prolonged lectures and other passive learning methods. Training programs should be presented in short segments & involve frequent opportunities for audience participation.

Practice :
Distributed Practice : - A Training procedure in which trainees practice a skill over several segments or sessions. - Distributing the studying time over the course of the semester. - It is usually preferred because it leads to better long-term retention. Massed Practice : - A training procedure in which trainees practice a skill in one session. - It is akin to cramming for an exam the night before it is given. - It means providing all the practice in one longer session. Feedback : - Information given to trainees that lets them know whether their behaviour is correct.

Step 3: Choosing the Appropriate Training Method :

A variety of instructional methods may be used to train employees. In most training situations, these methods are used in combination. Various Training Methods are as follows :

67 On the Job Training (OJT) Job Instruction Training (JIT) Lecture Case Method Role-playing Behaviour Modelling Computer based instruction (CBI) Video Interactive Video Training (IVT)

Step 4: Ensuring that Training is used on the Job :

Even when a company effectively develops and presents its training program, it has no guarantee that trainees will apply their new knowledge or skills to the job setting. Some additional reasons for the trainees failures to transfer their training follow , - Failure to learn the material in the first place - Lack of confidence in ones ability to perform the newly learned skill correctly - Forgetting the material Over-learning : - Learning training material so well that it will be long remembered, even without frequent practice. Action Plan : - A plan developed by trainees at the end of session that indicates the steps they will take on the job to apply the new skills. Multiphase Training Program : - A training program administered in several sessions in which trainees are given homework that requires them to apply that lesson back on the job and to discuss this experience during the next training session. Performance Aids : - Devices given to trainees to help them remember training material when they return to their jobs. Post training Follow-Up Resources : - It includes a hot-line number and instructor visits. - A hot-line, in which, the instructor can be reached in case the trainees need advice about how to apply the training material on the job. - Instructors may also visit the work site to observe & assist workers as they apply learned behaviours.

Step 5: Determining Whether Training Programs Are effective :

68 What to Evaluate : - An assessment of the effectiveness of a companys training program. - Evaluations should determine whether training programs have met their objectives. - Some measuring instruments that may be used for evaluation purposes are briefly described in the following list : - Trainee Reactions - Testing - Performance Appraisal - Records of organisational performance Evaluation Design : - Training evaluations seek to determine whether participation in a training program has led to desirable outcomes, such as learning and improved job performance. - Evaluations must therefore be able to detect whether the desirable outcomes have been achieved. - The best designs typically include the following features : - Pre-test : To show the trainees base or pre-training level of knowledge, skill or performance - Post-test To show the trainees post-training level of knowledge, skill or performance. - Control Group A Control group is identical in makeup to the group trained, except that these people have not received the trained.

Training Methods
OJT (On-the-Job Training) : - It involves one employee showing a newer one the skills and tasks that are needed for the job. - Usually, a short amount of time is set aside for OJT. - It allows trainees to watch more experienced workers and ask them questions as they perform the job. JIT (Job Instruction Training) : - It involves trainers showing trainees each step of a job, talking over the key points at each juncture, and guiding the trainees practice. - It is a good method for teaching tasks that can be broken down into step-bystep procedures. - Learners practice under the watchful eye of more experienced workers and gain confidence. Lecture :

69 It is just that a speaker presenting material, usually to a large group of workers. Are ideal for giving simple knowledge the history of a company, for example or a companys new vacation policy.

Case Method : - Cases ask trainees to read sample scenarios of events and situations they may encounter on the job and then analyze the circumstances. - It allows trainees to learn through guided discovery and teach them to think critically about problems. Role Playing : Here, trainees act out a situation and its resolution and receive feedback from the trainer and other trainees. It is a good method for teaching better communication and interaction skills. Behaviour Modelling : - It is based on the idea that workers should observe a task, practice it and receive constant feedback until they are competent. - Trainees learn the right way to do something the first time. - It captures the attention of the learner, provides clear, correct instruction; and monitors progress toward competency. CBI (Computer based Instruction) : - Uses a computer to take students through tutorials, drills, games and simulations. - The high level of interactivity in CBI results in higher levels of trainees acquisition and retention of the materials taught, offers self-paced learning and can be cost-saving, especially in terms of simulations. Video : - It uses video. To demonstrate tasks or present material. - With video training, users can skip over material they already know or watch a procedure several times in order to better grasp ti. IVT (Interactive Video training) : - It combines video and computer technology. - Trainees watch a video segment and respond via the computer - It allows trainees to repeat sections until they respond to training questions correctly. - Learners can replay situations that end badly until they are able to succeed.

70 Learners can be at remote locations and large numbers of workers can be trained at once.

Designing the Instructional Program : Instructional Methods

A variety of approaches are used to develop managers, including classroom instruction, career resource centres, job rotation mentoring and the assignment of special projects.

Classroom Instruction : - Classroom training takes place within the organisation or outside, at seminars and universities. - Content areas of classroom instruction, - Job duties and responsibilities - Policies and procedures - Employee familiarization - Attitudes and confidence - Handling employee interactions - Career development - General Management training - Human relations/leadership programs - Self-awareness program - Problem-solving / decision making problems Career Resource Centres : - A location in which companies make learning opportunities available to interested managerial candidates. Job Rotation : - A method of management development in which companies rotate trainees through a number of departments to serve. Mentoring : - Experienced supervisors who are assigned to new managers to teach, guide, advise, counsel and serve as role models. Special Projects - Action learning : A management development activity in which management gives candidates real problems to solve. - Task force : A management development activity in which a team of trainees tries to resolve an actual organisational problem.

Executive Development Programmes (or) Mgmt. Development Meaning :

Management development also looks for development of present managers.

71 Everyone who is in a managerial position or is expected to be in one in future should be developed. All potential managers or anyone below the top executive level in the organisation who may be transferred or promoted to another job should be prepared for an exposes in the process of executive development.

The Concept of Exe./Magt. Development :

Management development is the process by which managers acquire not only skills and competency in their present jobs but also capabilities for future managerial tasks of increasing difficulty and scope . - Chhabra, Ahuja & Jain All those activities and programmes which have substantial influence on changing the capacity of an individual to perform his present assignment better and in so doing is likely to increase his potential for future management assignment .

Nature of Executive Development :

Educational Process : o It is more akin to education than it is to specific training in skills. o The process of learning on an executives part has to be accepted as a discipline of self education. o Management development implies development of people of different aptitudes, talents, aspirations, needs and motivation. Behavioural Change : o It is a planned process of learning and growth designed to bring a behavioural change among the executives. o The individual will be able to perform his present assignment better and will increase his potential for future assignment. Self-Development : o Managers develop themselves by participating in training courses organised by the organisation. o They also make use of actual job experience in learning new behaviours. o The real urge for development should arise from within the individuals. Continuous Process : o It is an ongoing or never ending exercise rather than a oneshot affair. o It continues throughout an executives career because there is no end to learning. o It is a long-term process as managerial skills cannot be developed overnight.


Responsibility of Executive Development :

It is the duty of all managers to train those immediately below them and that on-the-job experience is a vital ingredient of management development. It is believed that an employees immediate superior in the organisation is an important key to influence his development. A wise manager will help him by counselling him, seeking to develop his strengths and tactfully indicating his blind spots. He can be given the necessary guidance to help him face the problems in the present job or to prepare him for a higher job. To increase the overall knowledge and conceptual and decisionmaking skills of executives. To improve the performance of managers in their present positions. To ensure an adequate reserve of capable well-trained managers for future needs. To influence the behaviour of workers through the executives. To introduce change in the organisation by developing executives into change agents or facilitators. To provide opportunities to the managers for their career advancement and To prevent obsolescence of executives by providing them opportunities for updating their knowledge and skills.

Objectives of Executive Development :

Benefits of Executive Development :

To To To To To To To To To increase quality and productivity. improve the technical performance. improve the supervision and leadership at each level. improve the intra and inter departmental co-operation. address personal growth and prevent obsolescence. help company fulfil its future managerial personnel needs. improve organisational climate develop innovativeness and creativity. improve interpersonal communication and team work.

Need for Executive Development :

There is a rapid pace of technological change. Socio-cultural environment in the market and the consumers have become conscious of their rights. To-days worker is educated and socially aware. Frequent labour-management conflicts need trained managers to bring industrial peace in the enterprise.

73 Management development can be used to impart knowledge to the managerial personnel in the latest management concepts, principles, techniques and practices.

Methods of Executive Development :

On the job Method : - It is to increase the ability of the executives to work while performing their duties. - Aims at exposing the trainees to the real work situation. - Support is provided by the immediate superior in the conduct of these development programmes. - Method include ; o Coaching : - Here the immediate superior guides the subordinates about the various ways and methods and skills to do the job. The superior only guides and does not teach, although he extends his assistance whenever needed. - It provides real practical job experience to the trainee. - It involves discussion between a superior and the subordinate in areas concerned with the latters hopes, fears, emotions and aspirations. - It is increased motivation for the trainee and minimisation of the problems of transferring learning from theory to practice. o Understudy : The trainee is prepared to perform the work. The dept. manger may pick one individual from his unit to become his understudy. This will give him an opportunity to try out his leadership skills. It ensures the ready supply of competent people whenever the vacancy arises due to promotion, transfer, retirement or resignation of the present occupant of the position. It relieves the boss of some of his workload by delegating some portion of his work to the understudy. Job rotation : The practice of shifting people from one job to another with in a working group so that there is some variety and relief from the boredom routine. It means lateral transfer. It may also be on a situational basis-that is, by moving the person to another activity when the first is no longer challenging to him, or to meet the needs of work scheduling.

o -

74 It is an excellent means of broadening the work experience of employees and also turning specialists into generalists. It reduces boredom and monotony and stimulates development of new ideas. Multiple Management : It is the name given to the system whereby permanent advisory committees of executives study problems of the organisation and make recommendations to higher management. Then is, a Junior Board of Directors in a company for the training of the executives, which given the power to discuss any problem. As a management development technique, multiplemanagement gives board members an opportunity to gain knowledge and experience in various aspects of business. Next, identify those who have good executive talent & junior executives gain practical experience in group decision-making and in team work. Committee Assignments : Ad hoc committee is constituted and is assigned a subject to discuss and make recommendations. It has been assigned objectives and responsibilities related to some aspect of the organisation. It will make a study of the problem and present its suggestions to the departmental head. It is an important device of educating the executives to acquire general background and to modify their attitude towards the selected problem.

Off the job Method : - It is to improve general behavioural and decision-making skills of the executives whereas the emphasis of on-the-job methods does not contain such a heavy dose of reference to the particular job. - Methods include ; o Special courses : - The executives may be required to attend special courses which are formally organised by the enterprise with the help of experts from educational institutions. - Big enterprises can send their executives to the management development courses run by management institutes because the fee of these courses is very high. o Special readings :

75 HRD Manager can provide Xerox copies of specific articles published in journals such as Fortune, Harvad Business Review, Business Today and Newspapers such as Economic Times & Financial Express to the executives for improving their knowledge. The executives can study such material to update their knowledge at their leisure.

o Special projects : - A trainee may be assigned a project that is closely related to the objectives of his dept. - The trainee will study the problem, collect and analyse data and make recommendations upon it. - This project would also help in educating the trainee the importance of cost and to understand the organisational relationships with the accounting and other depts. o Conference training : - It is a group of meeting conducted according to an organised plan in which the members seek to develop knowledge and understanding by participation. - A person can learn from others by comparing his opinions with those of others. - It is ideally suited to learning problems and issues and examining them from different angles. o Sensitivity (or) T-Group (or) Laboratory Training : - It means the development of awareness and sensitivity to behavioural patterns of oneself and others. - It helps the participants to understand how groups actually work and give them a chance to discover how they are interpreted by others. - It aims at increasing tolerance power of an individual and his ability to understand others. - Conducted under controlled laboratory conditions. - To help its members learn how groups actually work. - To give each member of the group a chance to discover how other people interpret and are affected by his own behaviour. - Sitting around a table discussing for hours. - Members criticise freely the behaviour of each other thereby giving feedback which may be positive or negative. o Role playing : - To increase the trainees skill in dealing with others. - It can be used to human relations training and sales training because both these involve dealing with others.

76 The role player may provided with either a written or oral description of the situation and the role they are to play. Then allowed sufficient time to plan their actions. It may be a supervisor discussing a grievance with an employee or a salesman making a presentation to a purchasing agent.

o Programmed Instruction : - It is a self-teaching method particularly useful for transmitting information or skills that need to be learnt and placed in a logical order. - Approached have been developed based on this concept (a)Linear Programming & (b)Branching Programming. Linear Programming : o A small volume of information called a frame is presented and it is followed by a simple question that requires an answer on the part of the learner. o The answer may be written or said silently. o Since programmed learning is designed to have a low error rate, the learner is further motivated. Branching Programming : o It relies on specially written text material. o After the instruction is presented, a multiple-choice question appears, with the page number listed by each alternative answer. o The learner picks the answer though to be correct, then turns to the designated page number. o If the answer is incorrect, the page tuned to gives additional explanation. o Then the learner is asked to read that material that builds a better background. o In-Basket Method : It is used for developing decision-making skills among the trainees. Familiar receptacle used for collecting incoming mail, memos, and reports. Materials that require problem solving are put into an in-basket and the trainee plays the role of a manager responsible for solving the problems. ( It is to ask each student to pretend that he is a manager who has just returned from a business trip and must leave again shortly on another trip. The student manager has twenty minutes to make decisions on materials that have accumulated in the basket. He has to list priorities, make

o Simulation techniques which include

77 assumptions, distribute work among subordinates and delegate authority. After the time is over the student will meet the trainer who will evaluate the formers performance and suggest ways for improvement. ) o Case Study : Case if presented to a group of trainees for analysis and solution or decision making. Group members study the problem, then offer their solutions. Group members are able to get immediate reactions to their ideas, as well as react to the ideas of others. It gives the trainees an opportunity to apply their knowledge to the solution of the designated problem. o Management Games : It is a class room exercise in which a number of teams of trainees compete against each other to achieve certain objectives. The game is designed to be a close representation of real-life conditions. It has an objective feedback of the consequences of business decisions.

Knowledge Management Meaning :

It is a systematic explicit and deliberate building, renewal and application of knowledge to maximize an enterprise knowledge related effectiveness and returns from its knowledge assets. It is the formalisation of an access to experience, knowledge and expertise that create new capabilities, enable superior performance, encourage innovation and enhance the customer value. It is the capacity to act. It is a systematic and organised attempt to generate knowledge within an organisation, that can transform its ability to store and use knowledge for improving performance. Tacit Knowledge : o It is the personal knowledge embedded in individual experience. o It can be shared and exchanged through direct, face-to-face contact.

Definition :

Types of Knowledge Mgt. :

78 o It is deeply rooted in the individuals action, experience as well as in the ideas, values or emotions he or she embraces. o Subjective insights, institutions etc., are the examples of tacit knowledge. Explicit knowledge : o It can be found in the documents of an organisation reports, articles and manuals, patents, pictures, video images sound, software etc. o If defines the identity, the competences and intellectual assets of an organisation independently of its employees. o However, the explicit knowledge can growth and sustain only through the growth of tacit knowledge. It provides a substantial competitive advantage. An organisation to gain a competitive edge in the market by turning intellectual assets into value through innovation. It is used for creating customer value, operational excellence and product innovation, by which the profit and effectiveness of the organisation will increase. It leverages internal and external expertise to build and apply industry-leading skills and It develops and exploits in tangible based assets including brands, technology and know-how.

Importance of Knowledge Mgmt.:

Difference between Knowledge and Information :

Knowledge Management Focus on capturing tacit and explicit information. Takes information from one source and promotes reuse in other situations. Designed for distributed access, storage and control. Emphasizes end-user-defined information, relationships and needs. Enables end-user-defined information, relationships and needs. Employs technologies for knowledge discovery. Adds value for growth, innovation and leverage. Productivity for innovation. Information Management Focus on recording and processing explicit information. Takes information from multiple sources and organises it into database system. Designed for centralised information storage and control. Emphasizes enquiries to highly structured repositories. Concerned with information collection, classification and distribution. Dependent on well-defined enquiries for retrieval. Required to maintain mission critical enterprise data. Productivity for efficiency.


Challenges in Developing Knowledge Mgmt.:

Burden of past experience o The employees in the organisation often unable to receive and process new knowledge because they have in their mind the experience of past events. Organisational defensive routines : o It becomes very difficult to organisational defensive routines. break or change the

Tunnel Vision : o The concept of tunnel vision is nothing but people tend to view the problem or situation from their point of view, not from the systems point of view. o So the people often hesitate to receive, capture or process new information. Bounded Rationality : o Both the individuals and organisations are bound by their ability to understand and process complete information available to them. o They act basically on the basis of their cognitive schema. o This acts as the final roadblock to generate knowledge in the organisation.

Knowledge Mgmt. Proces:

Identify : o Determines which competences are critical to success. o Then the related strategic and knowledge domains are identified. o Next, the existing levels of expertise in the workforce are assessed for each knowledge domain, o The gap between existing and needed expertise are determined. o To improve expertise levels, education programmes and performance support systems are constructed with the help of the domain experts and training professionals. Collect : o Deals with acquiring existing knowledge, skills, theories and experience needed to create the selected core competences and knowledge domain. o In order to be useful, knowledge, expertise and experience must be formalised by making it explicit. Select : o It is the continuous stream of collected and formalised knowledge and assess its value.

80 o Domain experts should assess and select the knowledge to be added to the organisational memory. o One framework should be selected as the basis for organisation and classifying knowledge to be stored in the knowledge repository. Store : o It takes the nuggets of knowledge and classifies them and adds them to the organisational memory. o Knowledge must be organised and represented into different knowledge structures within a knowledge repository. o Much of this knowledge can be represented in electronic form as expert systems. Share : o Share stage retrieves knowledge from the corporate memory and makes it accessible to uses. o In additions, individuals, groups and departments often share ideas, opinions, gossip, knowledge and expertise in meetings. o Then the valuable portions of these communications, discussions and arguments should be made available to the capture stage of knowledge management process. Apply : o It retrieves and uses the needed knowledge in performing tasks, solving problems, making decisions, researching ideas and learning. o In order to easily access, retrieve and apply the right pieces of knowledge at the right time in the right form, more than a query language is required. Create : o The create state uncovers new knowledge through many avenues, such as observing customers, customers feedback and analysis, casual analysis, benchmarking, data-mining etc. o This stage also covers how to elicit non-verbal, unconscious knowledge from domain experts and turn it into documented formal knowledge. Sell : o New products and services are crafted from the intellectual capital that can be marketed external to the enterprise.

Benefits of Knowledge Management :

Increased productivity Improved quality of production Reduced cost Better coordination in the working of an organisation.

81 Improved work environment of an organisation. Promotes innovations; opens the way for creative thinking.

Motivation Definition : Something that moves the person to action and continues him in the course of action already initiated . - Robert Dubin Motive is an inner state hat prompts or incites the individual to action. Motives are expressions of persons needs and hence they are personal and internal. It is the process of simulating someone to adopt a desired course of action. In order to intensify the willingness of a person to work hard for the achievement of organisational objectives, his motives must be satisfied by offering incentives. It is a bare fact that most of us use only a small portion of our mental and physical abilities. To exploit the unused potential in people, they are to be motivated. Such exploitation results in greater efficiency, higher production and better standard of living of the people. It is a psychological concept. It is based on human needs which generate within an individual. Motivation is total, not piece-meal. A person cannot be motivated in parts, an employee is an indivisible unit and his needs are interrelated. Motivation is a continuous process. It is not a time-bound programme or touch-and-go affair. Human needs are infinte. Motivation causes goal-directed behaviour. Motivation may be financial or non-financial. Financial incentives include pay, allowances, bonus and perquisites. Non-financial incentives consist of recognition, praise, responsibility, participation in decision-making, challenging job, etc. Motivation is a complex process. Higher Efficiency Optimum utilisation of resources Reduction in labour turnover Better industrial relations

Meaning :

Objective of Motivation :

Nature of Motivation :

Importance of Motivation :-

82 Easier Selection Facilitates change.

Process of Motivation :Discovery of new need Awareness of Need Search for action Fulfilment of need Non-fulfilment of need Revaluation and new action Motivation is the result of an interaction between human needs and incentives. A person feels motivated when available incentives lead to the satisfaction of his motives or needs. The various steps in the process of motivation are described below. Awareness of Need : - Needs or motives of a person are the starting point in the motivational process. - Motives are directed towards the realisation of certain goals which directed behaviour. Search for Action : - In order to relieve his tension and to satisfy his needs, the individual looks for a suitable action. - He develops certain goals and makes an attempt to achieve them. Fulfilment of Need : - In case the individual is successful in his attempt, his need is satisfied and he feels motivated. - If the attempt is unsuccessful, the need remains unsatisfied and the individual engages himself in search for a new action. - He will engage himself in constructive or defensive behaviour. Discovery of New Need : - Once one need is fulfilled, some other need will emerge and the individual will set a new goal. - This process continues to work within an individual because human needs are unlimited.

Motivational Techniques Financial & Non-Financial of Incentives:Financial Incentives :

Are payments directly or indirectly in Money, Wages, Salaries, Profit-sharing , Retirement pay, Vacation pay etc.

83 Individual incentives refer to all such plans which induce an individual to achieve higher performance to earn higher financial rewards, Piece rate Wages etc. Group incentives refer to all such profit sharing, production bonus, pension plan etc. Challenging work Recognition and Status Job Security Responsibility Competition Opportunity for Growth Participation.

Non-Financial Incentives :

Types of Motivation : Positive motivation - Involves proper recognition of employees efforts and appreciation of employee contribution towards the goal achievement. - Improve the standard of performance, lead to good team spirit, a sense of cooperation. Negative motivations - Based on force, fear and threats. - The fear of punishment - Threatened with demotion, dismissed, lay-off, pay cut etc. Extrinsic motivation - Include higher pay, retirement benefits, rest periods, holidays, profit sharing schemes, health and medical insurance, vacation etc. Intrinsic Motivation - Praise, recognition, responsibility, esteem, power, status, participation etc.

Theories of Motivation
Maslows Need Hierarchy Theory
Abraham H.Maslow developed his theory on the basis of human needs. He was the opinion that human behaviour is directed towards the satisfaction of needs. He proposed that human needs can be arranged in a particular order from the lowest to the highest. Maslow classified all human needs into five categories as follows, 5

Self-Actualisation Needs 4 Esteem (EGO) Needs 3 Social Needs 2 Safety Needs 1 Physiological Needs Physiological needs : - The biological needs required to preserve human needs - Needs for food, clothing and shelter. Safety needs : - Protection from physiological dangers - Desire for an orderly, predictable environment. - The desire to know the limits of acceptable behaviour


Social needs Needs are for love, friendship, exchange of feelings & grievances, recognition, conversation, belongingness, companionship etc. Esteem needs - Self-confidence, achievement, competence, self-respect, knowledge and for independence and freedom. Self-actualisation needs The desire to become everything that one is capable of becoming.

Herzbergs Motivation Hygiene Theory

Fedrick Herzberg and his associates conducted wherein they interviewed 200 engineers and accountants from nine different companies in pittsburg area of USA. These executive are asked to recall specific incidents in their experience which made them feel either exceptionally good or exceptionally bad about their jobs. On the basis of their study, Herzberg concluded that there are some job conditions which operate primarily to dissatisfy employees while other job conditions operate primarily to dissatisfy employees while other job conditions operate primarily to build strong motivation and high job satisfaction.

85 He called these factors hygiene factors and motivating factors respectively.

Hygiene Factors : Company policy and administration Technical Supervision Interpersonal relations with supervisor Interpersonal relations with subordinates Interpersonal relations with peers Salary Job Security Personal Life Working Conditions Status Motivating Factors : Achievement Recognition Advancement Work itself Possibilities of growth Responsibility Hygiene factors are essential for people to work but true motivators play an important role in helping people to work more and better. A linkage between dissatisfaction and satisfaction is given below. Hygiene Dissatisfaction Factors True No Dissatisfaction Employee Satisfaction Motivators

Douglas McGregors Motivation Hygiene Theory

Douglas McGregor suggests that while trying to motivate his subordinates a manager makes certain assumptions to predict human behaviour. These assumptions about human nature influence the managers actions. Mc Gregor formulated two sets of assumptions about human beings based on the participation of workers. He characterized these two sets of assumptions as Theory X & Theory Y .

Theory X -based on the following assumptions : - The average human dislikes to work. He avoid work if it is possible.

86 Therefore people must be controlled, directed and threatened with punishment to make them work. He has no ambition in life. He wants only job security He is resistance to change by nature. It is pessimistic, Static and rigid

Theory Y -based on the following assumptions : - Human being has the tendency to work - Man will have self-direction and control - Capable of solving organisational problems with high degree of imagination, ingenuity and creativity. - Represents a modern and dynamic nature of human beings - It is bases on positive motivation It is optimistic, dynamic & flexible The role of managers, therefore, is that of developing potential and facilitating people to use their potential towards organisational goals. Managers who believe in theory X mistrust people, attempt to closely supervise & control employees. Since theory X people have low maturity , their behaviour can easily be influenced by positional powers-coercison, reward and connection. Theory X Work is inherently distasteful to most people. Most people are not ambitious and have little desire for shouldering responsibilities. Most people have little or no creativity in solving problems. Most people lack initiative and prefer to be directed and coerced to work. Motivation occurs only at physical and safety needs level. People are motivated by money, fringe benefits and threat of punishment. People are comfort seekers. Management approach is that of command and control. Theory Y Work is as natural as play, if conditions are favourable. People are ambitious and crave for assuming additional responsibilities. Creativity is widely distributed in people. People are basically selfdirected, who take initiative to improve product and processes. Motivation operates at social, esteem and self actualisation levels. People are motivated by a sense of achievement. People are growth seekers. Management has to facilitate participation.


Vrooms Expectancy Theory

It is a theory based on self-interest, wherein each individual seeks to maximize his expected satisfaction. There are three important elements in this model. Valance : - Refers to the importance or personal value that an individual places on the rewards that can be achieved on the job Expectancy : It implies the extend to which a person believes that his effort will lead to high performance. Instrumentality : - It refers to the relationship between performance and reward. - Motivation in the sum of the product of valance, expectancy and instrumentality.

Porter And Lawler Expectancy Theory

Explain the complex relationship that exists between job attitudes and job performance. Performance in organisation appears to be a function of three important factors. - An employee must want to perform the assigned jobs. - Motivation alone will not ensure task performance. A person must have the necessary abilities and skills. - Finally, a person must usually have an accurate knowledge of the requirements of the job if he is expected to devote his energies fully on the assigned tasks. Some of the key variables : - Effort - Performance - Rewards - Satisfaction

Equity Theory
Motivation was formulated by J. Stacy Adam and is based on the social exchange process. The theory points out that people are motivated to maintain fair relationship between their performance and reward in comparison to others. The input of inequity on the person is as follows : - Perceived inequity created tension in the individual - The amount of tension is proportional to the magnitude of the inequity

88 - The tension created in the individual will motivate him to reduce it. - The degree of motivation is proportional to the perceived inequity. Merits of equity theory : - This theory makes managers realize that equity motive tends to be on one of the most important motives of the people in the organisation. - Feelings or perceptions in equity are important factor in work setting - Equity theory is not precise enough to predict which actions are most probable. - Equity theory is not a complete theory of motivation but deals only with one particular aspect of motivation.

McClellands Needs Theory

David C.McClelland and his associates of Havard University proposed that the organisation offers an opportunity to satisfy at least three needs, namely, the need for achievement, the need for affiliation and the need for power. Need for Power :- To determinate, influence or control people. - To set goals, make decisions and direct activities. Need for Affiliation :Is a social need, for companionship and support for developing meaningful relationships with people. Need for Achievement :It is the need for challenge, for personnel accomplishment and success in competitive situations. To motivate, 3 factors are required Trickle the mind, Touch the Heart and Train the hand. Some of the efforts in this direction have been discussed in the following paragraphs. Provide for basic needs : - If the workers are worried about their salary, housing, safety, job security, much efforts will be wasted by them in ensuring them. Therefore, imperative that the basic needs of people in the organisation are provided for. Proper job design : - Dehumanized work by making the workers job meaningless, routine, repetitive, removing all challenges and making the worker a part of machine culture. - This is causing frustration for workers with the outcome being work alienation. Boredom on job can be reduced by the following methods :

Factors to Motivate Workers :

89 Job Rotation Horizontal Loading Job Enlargement Job Enrichment Proper Placement : - Need to put the right person in the right job by determining abilities, aptitude of people, analysing jobs with respect of skill variety, task identification & significance and allocating suitable job to each worker. Set Example of high standards : - Workers tend to emulate superiors - Tackling problems with confidence and working out ways to overcome them with the help of others. Necessary Information to Workers : - A well informed worker considers himself a part of the system and is committed to the organisation. - Inform him the significance of his job in relation to overall organisational goals. Sense of Freedom : - Let the workers feel that the superior is a part of the work situation and not something imposed on them. - An effective manager encourages people to work independently or in a team interdependently. - He trusts people and their capabilities and does not interfere with them unless absolutely necessary. Opportunity for Participation : - Mental and emotional involvement of people in group situations encourages them to contribute to group goals. - Participation improves involvement in the change process, creating a feeling of its-my-baby. Sense of accomplishment : - Workers also look forward to be rewarded for good and innovative work not necessarily in financial terms. - Even appreciation has great value. - Praising before others and giving additional responsibilities make them feel worthy of something. It also creates a sense of competition among other workers. Concern about employee welfare : - There should be genuine concern for welfare of the people such as interview employees on assuming new jobs, ask and record their complete personal details, Counsel them periodically, Wish him on his birthday/anniversary etc. Be Transparent : - Be fair and square to people.

90 Remember, it is not enough to do justice, justice must also appear to have been done. Dont be prejudiced decide things based on merits.

Motivation & Morale :Morale is a composite attitude of various individuals employed forming the department/organisation. Morale as an attitude or a desire to continue in and willingness to strive for, the goals of a particular group of organisation. Morale is dependent on the following factors : - Feeling of togetherness - A clear goal or objective to be achieved - Expectation of success towards the attainment of the goal - Feeling that each member has a meaningful task to perform for achieving the goal - Supportive and stimulative leadership

Demotivates Or Demoralizes Emplouyees : The following factors can be prime demotivators / demoralizers. Under assignment unskilled job assigned to skilled persons causing frustration. Over assignment good worker being overloaded to the extent that he feels being exploited. Buckmastership superior avoiding hard work themselves and passing on the same to their subordinates and finding faults. Coercive type of supervision manipulate, divide and rule policy, making promises but not keeping them, encouraging groupism etc.

Motivational Techniques in Practice : Management by objctives : - A programme that encompasses specific goals particularly set for an explicit time period with feedback on goal progress. Behaviour modification : - A programme where managers identify performance related employee behaviours and then implement an intervention strategy to strengthen desirable performance behaviours and weaken undesirable behaviours. Employee Involvement : - A participative process that uses the entire capacity of employees and is designed to encourage increased commitments to the organisations success. Participative Management : - A process where subordinates share a significant degree of decision making power with their immediate supervisors.

91 Works Council : - Groups of nominated or elected employees who must be consulted when management makes decisions involving personnel. Board of Representatives: - A form of participation in which representatives of the employees sit with a companys board of directors and present the employees interest. Quality circle :: - A work group of employees, who meet regularly to discuss their quality problems, investigate causes, recommend solutions and take corrective action. Viable pay programmes : - A portion of an employees pay is based on some individual and on organisational measure or performance. Profit sharing plans : - Organisation wide programmes that distribute compensation based on some established formula designed around a companys profitability. Gain Sharing : - An incentive plan where improvements in group productivity determines the total amount of money that is allocated. Skill Based Pay : - Pay levels are based on how many employees have or how many jobs they can do. Flexible benefits: - Employees tailor their benefit programme to meet their personal needs by choosing and picking from a menu of benefit options. Comparable worth: - A doctrine which holds that jobs equal in value to an organisation should be equally compensated, whether or not the work content of these jobs is similar.

Career Management Introduction :

It is a sequence of positions or jobs held by a person during the course of his working life. It is not a series of work related experiences but a sequence of attitudes and behaviour associated with work related activities over the span of a persons life. It represents an organised path taken by an individual across time and space.

92 A persons career is shaped by many factors e.g., hereditary factors, parents, culture, age level, job experience, social environment etc. An individual with managerial potential joins a firm not for a job but for a career. It is an important technique for productive resolution of this conflict between the individual and the organisation.

Definition :
A career is a sequence of separate but related work activities that provide continuity, order and meaning to a persons life. Flippo

Meaning :
It is the systematic process by which one selects career goals and the path to these goals. It involves designing an organisational system of career movement and growth opportunities for employees from the employment stage to the retirement stage. It is a managerial technique for mapping out the entire career of your employees. It requires discovery, development, planned employment and reemployment of talents. Career Goals : The future positions on strives to reach as part of a career Career Path: The sequential pattern of jobs that form a career Career Progression : Making progress in ones career through promotions Career Counselling : Guiding and advising people on their possible career paths and what they must do to achieve promotions. Mentoring : The process wherein an executive or senior employee serves as a teachers, advisor, guide, friend, philosopher and confidante to the new entrant. Researchers have indicated that certain attitudes formed early in life, guide people throughout their career. They anchor an individual to one or a few related types of careers. Knowledge of these career anchors helps in planning career development. Five such anchors have been identified as : Managerial Competence : - The fundamental characteristics of the persons anchored by an overriding interest in management include a

Career Planning Teminology :

Career Anchors :

93 capacity to take considerable responsibility, ability to influence and control others and skills in problem solving. Technical-functional competence : - Their primary interest is in the functional work. - They consider managerial and administrative responsibilities as avoidable irritants. - They will like to remain experts rather than become general managers. Search for security : - They are more attached to an organisation or a location than to work. - They do not want to hear anything against their organisation. - The only price to be paid by the organisation is to keep them at the location of their choice. Desire for creating and developing something new : - Such individuals start a new business, less for making money than for creating a product that could be identified as theirs. Freedom of independence : - They like to work at their own pace. - They will like to choose their working hours. - Freelance writers and consultants come category.



Objectives of Career Planning :

To attract and retain the right type of persons in the organisation. To map out careers of employees suitable to their ability, and their willingness to be trained and developed for higher positions. To ensure better use of human resources through more satisfied and productive employees. To have a more stable workforce by reducing labour turnover and absenteeism. Analysis of individual skills, knowledge, abilities, aptitudes etc. Analysis of career opportunities both within and outside the organisation. Analysis of career demands on the incumbent in terms of skills, knowledge, abilities, aptitude etc. and in terms of qualifications, experience and training received etc. Relating specific jobs to different career opportunities. Establishing realistic goals both short-term and long-term. Formulating career strategy covering areas of change and adjustment. Preparing and implementing action plan including acquiring resources for achieving

Process & Steps in Career Planning & Development. :


Need for Career Planning :

To attract competent persons and to retain them in the organisation To provide suitable promotional opportunities To enable the employees to develop and make them ready to meet future requirements. To increase the utilisation of managerial reserves within an organisation. To correct employee placement To reduce employee dissatisfaction and turnover. To improve motivation and morale. To provide guidelines that help an individual to understand himself more clearly and develop his own thinking and outlook. To help individual achieve and enjoy greater personal satisfaction and pleasure. To enable individuals to study the immediate and personal world in which they live. To help individuals understand the forces and dynamics operating in a system. Exploratory Stage : o Starts when a new employee joins an organisation. o He finds that neither the education in the university nor the induction programme of the organisation is able to prepare him fully for the job at hand. o However, the sooner the trainee is given a definite job, the more rapidly he will develop. Establishment Stage : o A good career development plan should provide their feedback on his performance appraisal, the first promotion and the first successfully completed assignments are all very important occasions for a young employee. Maintenance Stage : o Employees try to retain the name they have established in their career. o This will require continuous effort at self-development. Stage of decline : o Some advance planning for retirement can ensure a smooth transition. o Many organisations conduct training programme for their retiring employees.

Career Counselling :

Career Development Cycle :

Career Development Model :

Organisational career planning career planning Individual

Integrate short-term and long-term interests & abilities Human resource needs organisational Develop a career plan for each opportunities Individual goals

95 Assess personal College data about

Set career goals & Develop a strategy to achieve career

Integrate organisational needs and individual career plans Designing individual career paths, crate developmental Strategies and provide career counselling Career Development Implement career plans Publicise job vacancies Appraise employee performance Employee development through On & Off the job experiences Evaluate career progression Career need Assessment : o Career needs of employees can be judged by evaluating their aptitudes, abilities and potential. o Should assist the employees in assessing their career needs and in identifying their career goals Life planning work books can be used to help employees develop and clarify their career goals. o Psychological tests, depth interviews and simulation exercises may be used for exploring potential and developing future career goals for executives. Career Opportunities : o Can be met should be identified through job analysis. o Job description, job specification and job redesign reveal lines of advancement for employees. o Basis of such information employees can plan their own career development. Need Opportunity Alignment : o Employee needs are aligned with available career opportunities. o The organisation can design appropriate development programmes to help employees integrate their development needs with organisational opportunities o Some of these programme are as follows, Individualised Techniques Performance Appraisal

96 Management by objectives Career counselling

Monitoring Career Moves : o It is necessary to maintain a record of career movements of employees and to monitor their progress towards the predetermined career goals. o In case career opportunities are not available for some employees, they may be assisted in finding suitable openings outside the organisation. Top management support Expansion Clear goals Motivated and Hardworking staff Proper selection Proper age balance Fair promotion policy Management of Career stress Internal Publicity Continuity

Making Career Planning Effective :

Career Development,Steps involved in establishing a Career Development System:

Need : - This step involves in the conducting of a needs assessment as a training programme. Vision : - The needs of the career system must be linked with the interventions. - An ideal career development system known as the vision links the needs with the interventions. Action Plan : - An action plan should be formulated in order to achieve the vision. - The support of the top management should be obtained in this process.

Career Development Actions :

Job Performance : - Employee must prove that his performance on the job is to the level of standards established, if he wants career progress. Exposure : - Employees desire for career progress should expose their skills, knowledge, qualifications, achievements,

97 performance etc. to those who take the decision about career progress. Resignations : - Employees may resign the present job in the organisation, if they find that career opportunities elsewhere are better than those of the present organisation. Change the job : - Employees who put organisational loyalty above career loyalty may change the job in the same organisation if they find that career opportunities in other jobs in the same organisation are better than those in the present job. Career Guidance : - Counselling provides information, advice and encouragement to switch over to another career or organisation, where career opportunities are better.

Advantages of Career Planning & Development :

For Individuals : - The process of career planning helps the individual to have the knowledge of various career opportunities, his priorities etc. - This knowledge helps him select the career which is suitable to his lifestyles, preferences, family environment, scope for self-development. - It helps the organisation identify internal employees who can be promoted. - Internal promotions, up-gradation and transfers motivate the employees boost up their morale and also result in increased job satisfaction. - Increased job satisfaction enhances employee commitment and creates a sense of belongingness and loyalty to the organisation. - Employee will await his turn of promotions rather than changing to another organisation. This lowers employee turnover. - It improves employees performance on the job by tapping their potential abilities and further employee growth. For Organisations : - Efficient career planning & development ensures the availability of human resources with required skill, knowledge and talent. - The efficient policies and practices improve the organisations ability to attract and retain highly skilled and talented employees. - Proper career planning ensures that the women and people belonging to backward communities get opportunities for growth and development.

The career plan continuously employees expectations and employees frustration. By attracting and retaining the people from different cultures, enhances cultural diversity. Protecting employees interest results in promoting organisational goodwill.

98 tries to satisfy the as such minimises

o As a technique of human resource development, mentoring has been in existence ever since the human race came on the planet earth. o Mentoring is the process whereby a senior manager acts as a friend philosopher and guide to a new recruit, easing the latter through the rites of passage from the B-school to organisational life. o A mentor is essentially an emotional kind of support provided by an experienced person to younger people through teaching, coaching, counselling, guiding and so on. o A mentor performs all types of elucidation to his or her protg from job content to personal counselling, from drawing up a dress code to teaching table manners, etc. o While organisational training takes care of the knowledge base and the skills set of the young manager, mentoring complements it with personal instruction in the intricacies of operating in that corporation. o It reduces training times, ensures individual attention to problems are makes the learning flexible rather than structured. o Mentoring is a valuable tool for developing self-confident and empowered managers who can operate under stress while retaining their quality standards and values. Mentoring consists of the following steps. o Initiation o Progression o Assimilation o Integration

Hurdles in Mentoring :
Overload : o A senior and experienced manager may be over-burdened due to multiple responsibilities. o As a result he may not be able to pay adequate attention to the mantes. Role Perception : o The manager may not be a trained Counsellor.

99 o The members may sit back expecting the manager to do all the work which makes it a painful process. Lack of Information : o A manager may not have adequate information to answer the questions of mantes on career goals, needs of the organisation, career opportunities in future, etc. Unhelpful Attitude : o He manager may not take adequate interest in mantes. o His unhelpful attitude will discourage the young recruits. Mentoring can succeed if : o Top management supports the process o Mentors take a genuine interest in the exercise o There is no complacency in training and retraining human resources o Individual ideas are respected o Employees are made to sharpen their skills

Mentor Protg Relationship Definition :

The relationship between an experienced employee and junior employee, in which the experienced person helps the junior person with effective socialisation by sharing information gained through experience with the organisation . The senior employee contributes to the junior employees learning, job performance, socialization and retention. The senior/mentor also contributes for the career enhancement of the junior employee by coaching, creating exposure and visibility and providing protection. The mentor-protg relationship helps the junior employee in acquiring a sense of personal identity.

Meaning :

Requirements for Mentor Protg Relationships :

The Status and characteristic of the Mentor : o Mentors should be seniors to the protgs in status, experience and mostly in age also. o Mentors should have the skills, knowledge etc. those required by the junior employees. o Mentors should also be good, empathetic people, developing skills, interpersonal skills, communication. Protg :

100 o The junior employee or protgs should have the zeal to learn from their senior employee regarding their career, social and psychological aspects. The Relationship : o The relationship between the mentor and protg is based on mutual dependency and mutual trust. o This relationship is normally developed over a period. The Activities : o The mentoring activities should include developing the potentials of the protgs performance, providing the experiences and prospects in the organisation, interlinking formal learning and practice, new behaviours, trying out risks, stimulate, encourage, guide, support, provide feedback and caution the junior etc, the mentor should act as a role model, nurturing and controlling etc. Developing Higher Order Skills o Mentors should encourage their juniors towards high task performance by reducing the weakness and enhancing the strengths of the protgs. Response of the Proteges : o The protgs should know their career and personal goals, career opportunities and threats and learn from their mentors. o The protgs should learn from their mentors carefully and seriously.

Meaning :




Performance appraisal may be understood as the assessment of an individuals performance. In a systematic way, the performance being measured against such factors as job knowledge, quality and quantity of output, initiative, leadership abilities, supervision, dependability, co-operation, judgement, versatility, health & the like. Assessment should not be confined to past performance alone. Potentials of the employee for future performance must also be assessed.

Definition :

101 It is the systematic evaluation of the individual with respect to his or her performance on the job and his or her potential for development .
Performance appraisal is a formal, structured system of measuring and evaluating an employees job related behaviours and outcomes to discover how and why the employee is presently performing on the job and how the employee can perform more effectively in the future so that the employee, organisation and society all benefit . To effect promotions based on competence and performance. To confirm the services of probationary employees upon their completing the probationary period satisfactorily. To assess the training and development needs of employees. To decide upon a pay raise where (as in the unorganised sector) regular pay scales have not been fixed. To let the employees know where they stand insofar as their performance is concerned and to assist them with constructive criticism and guidance for the purpose of their development. To improve communication. Performance appraisal provides a format for dialogue between the superior and the subordinate, and improves understanding of personal goals and concerns. Performance appraisal can be used to determine whether HR programmes such as selection, training and transfers have been effective or not.. Provide information about the performance ranks. Decisions regarding salary fixation, confirmation, promotion, transfer and demotion are taken based on performance. Provide feedback information about the level of achievement and behaviour of the subordinate. This information helps to review the performance of the subordinate, rectifying performance deficiencies and to set new standards of work. Provide information which helps to counsel the subordinate. Provide information to diagnose deficiency in the employee regarding skill, knowledge, determine training and developmental needs and to prescribe the means for employee growth provides information for correcting placement. To prevent grievances and in disciplinary activities. Developmental Uses : o Identification of individual needs o Performance feedback o Determining transfers and job assignments o Identification of individual strengths & developmental needs. Administrative Uses / Decisions : o Salary o Promotion o Retention or termination

Objectives or Performance Appraisal or Evaluation :

Need for Performance Appraisal or Evaluation :

Multiple Purpose of Performance Appraisal :

o o o Recognition of individual performance Lay-offs Identification of poor performers

Organisational Maintenance / Objectives : o HR planning o Determining organisation training needs o Evaluation of organisational goal achievement o Information for goal identification o Evaluation of HR systems o Reinforcement of organisational development needs Documentation : o Criteria for validation research o Documentation for HR decisions o Helping to meet legal requirements

Appraisal Process :Objectives of Performance Appraisal Establish job Expectations Design an Appraisal Programme Appraise Performance Performance Interview Use Appraisal Data for Appropriate purposes Objectives of Appraisal : - It includes effecting promotions and transfers, assessing training needs and awarding pay increase. - It aims at improving the performance, instead of merely assessing it. Establish Job Expectations : - It includes informing the employee what is expected of him or her on the job. - Normally, a discussion is held with his or her superior to review the major duties contained in the job description. - Individuals should not be expected to begin the job until they understand what is expected of them. Design Appraisal Programme : - 1st step is to decide whether the appraisal should be formal or informal.

2 step is employees performance should be rated. The rate may be defined as the individual, work group, division organisation. Immediate supervisor Subordinates Peers Clients Many employers use rating committees to evaluate employees In Self appraisal, the employee himself or herself evaluates his or her own performance.



3rd Step is - Who are raters ?


4th Step is Problems of Rating ?

Leniency or Severity : - The rater may feel that anyone under his or her jurisdiction who is rated unfavourably will reflect poorly on his or her own worthiness. - He or she may rate leniently in order to win promotions for the subordinates and therefore indirectly increase his or her hold over them. - He or she may be operating on the premise, whoever associates with me is meritorious therefore I am meritorious. Central Tendency : - This occurs when employees are incorrectly rated near the average or middle of the scale. The attitude of the ratter is to play safe. - This safe-playing attitude stems from certain doubts and anxieties, such are - Do I know the man sufficiently well to be able to give a fair assessment of him ? - If I rate him the way I think I should, what will be its effect on my relations with the other ? - If I rate him the way I think I should, will I be accused to being partial ? Halo Error : - A halo error takes place when one aspect of an individuals performance influences the evaluation of the entire performance of the individual, just as the assessment of the performance of a student in his or her examination being influenced by the opening paragraph of every answer. - In an organisation, it occurs when an employee who works late constantly might be rated high on productivity and quality of out as well as on motivation. Rater Effect : - This includes favouritism, stereotyping and hostility. - Excessively high or low scores are given only to certain individuals or groups based on the raters attitude to wards the rate, not on actual outcomes or behaviours. Sex, age, race & friendship biases are examples of this type of error. Primacy & Recency Effects : - The raters ratings are heavily influenced either by behaviour exhibited by the rate during the early stages of the review period or by outcomes, or behaviour exhibited by the rate near the end of the review period. Perceptual Set :

This occurs when the raters assessment is influenced by previously held beliefs. - For example, if the supervisor has a belief that employees hailing from one particular region are intelligent and hard working, his subsequent rating of an employee hailing from that reign tends to be favourably high. Performance Dimension Order : - Two or more dimensions on a performance instrument follow or closely follow each other and both describe or rotate to a similar quality. - The rater rates the first dimension accurately and then rates the second dimension similar to the first because of their proximity. - If the dimensions had been arranged in a significantly different order, the ratings might have been different. Spill-over Effect : - It allows past performance appraisal ratings to unjustifiably influence current ratings. - Past ratings, good or bad, result in similar rating for the current period although the demonstrated behaviour does not deserve the rating, good or bad. Status Effect : - It refers to overrating of employees in higher-level job or jobs held in high esteem and underrating employees in lower-level job or jobs held in low esteem.

5th Step is Solving Raters Problems

The best way to overcome the problems is to provide training to the raters. - Several factors such as performance ratings, union pressure, turnover rates, time constraints and the need to justify ratings may be more important than training, influencing the ratings they actually give. - Training of raters must help strengthen the factors that tend to improve accuracy of ratings and weaken those that lower the accuracy of the performance measurement. Factors that help improve accuracy : - The rater has observed and is familiar with behaviours to be appraised. - The rater is aware of personal biases & is willing to take action to minimise their effect. - Higher levels of management are held accountable for reviewing all ratings. - Performance factors are properly defined. Factors that may lower accuracy : - The rater rates ratees only when administrative actions are contemplated. - The rater is unable to express himself or herself honestly & unambiguously. - Appraisal systems, processes and instruments fail to support the rater. - The rater has to rate employees on factors that are poorly defined. - The rater is unaware of causes of rating errors.



Step is What should be Rated ?


Quality Quantity Timeliness Cost Effectiveness Need for Supervision Interpersonal impact These criteria relate to past performance and behaviour of an employee.

6th Step is Timing of Evaluation :

The general trend is to evaluate once in 3 months or 6 months or once in a year. Frequent evaluation gives constant feedback to the rate, thus

7th Step is Methods of Appraisal : - In this, all the approaches to appraisal can be classified in to (i) Traditional methods and (ii) Modern methods.

Methods of Performance Appraisal

Traditional Methods Modern Methods i. Graphic Rating Scales i. Behaviourally Anchored Rating Scales ii. Ranking Method ii. Assessment Centre iii. Paired Comparison Method iv. Forced Distribution Method iii. Human Resources Accounting v. Checklist Methods Simple Checklist Weighted Checklist Critical Incident Method vi. Essay /Free From Appraisal iv. Management by Objectives vii. Group Appraisal v. Psychological Appraisals. viii. Confidential Reports vi. 360 Degree Feedback

Traditional Methods :
Graphic Rating Scales : - It compare individual performance to an absolute standard. In this method, judgements about performance and recorded on a scale. - The appraisers are supplied with printed forms, one for each employee. - These forms contain a number of objectives, behaviour and traitbased qualified and characters to be rated like quality and volume of work, job knowledge, dependability, initiative, attitude etc. in the case of workers and analytical ability, creative ability, initiative, leadership qualities, emotional stability in the case of managerial personnel.

106 Ranking Method : - The employees are ranked from best to worst on some characteristics. - The rater first finds the employee with the highest performance & the employees with the lowest performance in that particular job category & rates the former as the best and the latter as the poorest. - Then the rater selects the next highest and next lowest and so on until he rates all the employees in that group. Paired Comparison Method : - The appraiser ranks the employees by comparing one employee with all other employees in the group, one at a time. - This pertains to assigning each employees name a different capital letter on a separate sheet of paper. Eg. A, B, C etc. - Then follow strategies develop a chart such as one below and for each plotted pair, write in the letter of the employee who, in your opinion, has done the superior job overall given a positive comparison total and a certain percentage of the total positive evaluation. - This percentage of positive comparisons given in the paired comparison method has an advantage over other comparative methods. - Paired comparison method could be employed fairly easily where the number of employees is less. Checklist Method : - The checklist is a simple rating technique in which the supervisor is given a list of statements or words and asked to check statements representing the characteristics and performance of each employee. - There 3 types of checklist methods, viz. Simple checklist, Weighted checklist & forced choice method. Simple Checklist Method : Statements concerning an employee behaviour. The rater checks to indicate if the behaviour of an employee is positive or negative to each statement. Employee performance is rated on the basis of the number of positive checks. A difficulty often arises because the statements may appear to be virtually identical in describing the employee. Weighted Checklist : It involves weighting different items in the checklist, having a series of statements about an individual, to indicate that some are more important than others. The rater is expected to look into the questions relating to the employees behaviour, the attached rating scale and tick

107 those traits that closely describe the employee behaviour, the attached rating scale and tick those traits that closely describe the employee behaviour. The performance ratings of the employee are multiplied by the weights of the statements and the coefficients are added up. The cumulative coefficient is the weighted performance score of the employee.

Forced Choice Method : A large number of statements in groups are prepared. Each group consists of four descriptive statements concerning employee behaviour (Tetrad). Two statements are most descriptive (favourable) Two are least descriptive (un-favourable) of each tetrad. The actual weightage of the statements are kept secret. The appraiser is asked to select one statement that mostly describes employees behaviour out of the two favourable statements and one statement from the two unfavourable statements. Critical Incident Method : The supervisor continuously records the critical incidents of the employee performance or behaviour relating to all characteristics (both +ve & -ve) in a specially designed note. The supervisor rates the performance of his subordinates on the basis of notes taken by him. Recording events (critical) continually over a period of time may be resented by the raters. The question of discounting precious time of the executive is also involved here. Because of the time required to write complete profiles of critical incidents, managers can be asked instead to record sketchy notes of their observations noting the date and some other reminder of the event. The method can result in employees becoming concerned about what the superior writes about them. Employee may begin to fear the managers black book. Essay or Free Form Method : It requires the manager to write a short essay describing each employees performance during the rating period. It emphasises evaluation of overall performance, based on strengths/weakness of employee performance rather than specific job dimensions. The quality of the ratings depends, not actually on employee performance, but on the writing ability of the rater. Group Appraisal :

An employee is appraised by a group of appraisers. The head of the dept. or manager may be the Chairman of the group and the immediate supervisor may act as the Coordinator for the group activities. The immediate supervisor enlightens other members about the job characters, demands, standards of performance etc. Then the group appraises the performance of the employee, compares the actual performance with standards, finds out the deviations, discuss the reasons, suggests ways for improvement of performance, prepares action plans, studies the need for change in the job analysis & recommends change, if necessary.


Modern Methods :
Behaviourally Anchored Rating Scales ( B A R S ) : - BARS method combines elements of the traditional rating scales & critical incident methods. - Using BARS, job behaviours from critical incidents-effective & ineffective behaviours are described more objectively.
How to Construct BARS ?

Step Step Step Step Step

1 2 3 4 5

: Collect Critical Incidents : Identify Performance Dimensions : Reclassification of Incidents : Assigning Scale Values to the Incidents : Producing the Final Instrument

Assessment Centre : - It is a central location where managers may come together to have their participation in job-related exercises evaluated by trained observers. - The principal idea is to evaluate managers over a period of time, say one to 3 days, by observing their behaviour across a series of select exercises or work samples. - Assessees are requested to participate in in-basket exercises, work groups, computer simulations, role paying & other similar activities which require the attributes for successful performance, as in the actual job. - After recording their observations of ratee behaviours, the raters meet to discuss these observations. - The decision regarding the performance of each assessee is based upon this discussion of observations.
Well conducted assessment centre can and does achieve better forecasts of future performance & progress than other methods of appraisal. Also reliability, content validity and predictive validity are said to be high in the assessment centres. The test also makes sure that the wrong people are not hired or promoted.

Management By Objectives ( M B O ) : MBO works can be described in 4 steps.

The first step is to establish the goals each subordinate is to attain. The goals typically refer to the desired outcome to be achieved. These goals can then by used to evaluate employee performance. The second step, involves setting the performance standard for the subordinates in a previously arranged time period. The third step, the actual level of goal attainment is compared with the goals agreed upon. The evaluator explores reasons for the goals that were not met & for the goals that were exceeded. It helps possible training needs. The final step involves establishing new goals and possibly, new strategies for goals not previously attained. Subordinates who successfully reach the established goals may be allowed to participate more in the goal-setting process the next time. The process is repeated. The MBO process seems to be most useful with managerial personnel and employees who have a fairly wide range of flexibility and self-control in their jobs.

Psychological Appraisal :
Are conducted to assess the employees potential. It consists of , a. Indepth interviews b. Psychological tests c. Consultations and discussions with the employee d. Discussions with the superiors, sub-ordinates & peers e. Reviews of other evaluations. Evaluation is conducted in the areas of , a. Employees intellectual abilities b. Emotional stability c. Motivational responses d. Reasoning and analytical abilities e. Interpretation and judgement skills f. Sociality g. Employees ability to comprehend the vents h. Ability to foresee the future. The psychological appraisal results are useful for decision-making about, a. Employee placement b. Career-planning and development c. Training and development.

Human Resources Accounting : - It deals with cost of and contribution of human resources to the organisation. - Cost of the employee includes cost of manpower planning, recruitment, selection, induction, placement, training, development, wages and benefits etc. - Employee contribution is the money value of employee service which can be measured by labour productivity. - Employee performance can be taken as +ve when contribution is more than the cost & performance can be viewed as -ve if cost is more than contribution.

110 Positive performance can be measured in terms of percentage of excess of employee contribution over the cost of employee. Similarly, negative performance can be calculated in terms of percentages of deficit in employee contribution compared to the cost of the employee. This technique still it is in the transitionary stage & not

developed. 360 Degree Feedback : - Where multiple raters are involved in evaluating performance, the technique is called 360 degree appraisal. - This technique is understood as systematic collection of performance data on an individual or group, derived from a number of stakeholders : the stakeholders being the immediate supervisors, team members, customers, peers and self. - It provides broader perspective about an employees performance & the technique facilitates greater selfdevelopment of the employees. - It enables an employee to compare his or her perceptions about self with perceptions of others. - Also provides formalised communication links between an employee and his or her customers. - The technique is particularly helpful in assessing soft skills possessed by employees, measuring interpersonal skills, customer satisfaction and team-building skills. Performance Interview : - Once appraisal has been made of employees, the raters should discuss and review the performance with the ratees, so that they will receive feedback about where they stand in the eyes of superiors. - It is useful to change behaviour of employees whose performance does not meet organisational requirements or their own personal goals. - It is useful to maintain the behaviour of employees who perform in an acceptable manner - It is useful to recognise superior performance behaviours so that they will be continued. - Raters offer feedback to the ratees through several methods : Tell & Sell: Interviewer lets assesses know how well they are doing & sells them on the merits of setting specific goals for improvement. Tell & Listen: Interview provides the subordinates with chances to participate and establish a dialogue with their superiors. Problem-solving: An active & open dialogue is established between the superior & the subordinate. Mixed Interview: It is a combination of tell & sell and problem-solving interviews.

111 Use of Appraisal Data : - The final step in the evaluation process is the use of evaluation data. - The data & information generated through performance evaluation must be used by the HR dept. - It may be recollected that the most significant rewards employers offer to employees are : - Money to purchase goods & services required not only for current & future survival, also for the luxuries modern life has to offer. - Opportunities to interact with other people in a favourable working environment. - Opportunities to learn, grow and make full use of their potential.

Benefits of Performance Appraisal :

For the Appraisee : - Better understanding of his role in the organisation. - Clear understanding of his strengths and weaknesses. - Increased motivation, job satisfaction and self-esteem. - Opportunity to discuss work problems & how they can be overcome. - Opportunity to discuss aspirations and any guidance, support or training needed to fulfil these aspirations. - Improved working relationships with the superiors. For the management : - Identification of performers & non-performers and their development towards better performance. - Opportunity to prepare employees for assuming higher responsibilities. - Opportunity to improve communication between the employees & the management. - Identification of training and development needs. - Generation of ideas for improvements. - Better identification of potential and formulation of career plans For the organisation : - Improved performance throughout the organisation. - Creation of a culture of continuous improvement and success. - Conveyance of message that people are valued. Shifting standards Different raters patters Central tendency First impression

Pitfalls / Criticism / Dangers in Performance Appraisal :

112 Latest behaviour Halo effect (Some raters have a tendency to rate high/low on all performance measures based on one of their characteristics) Horn effect (Highly critical bosses have a tendency to compare performance of their subordinates with what they did. This is not correct because the performance also depends upon the situation) Spill-over effect (This is allowing past performance to influence present evaluation. In some organisations, when an employee reports on transfer, his earlier reports are also transferred along. This biases the mind of the new boss. Appraising managers as managers. According Harold Koontz, the managers attain organisational objectives by performing the basic managerial functions, viz. planning, organising, leading, motivating, staffing & controlling. Performing staffing function requires performing a series of activities like analysing jobs of his dept, planning for human resources, deciding upon internal & external recruitment, developing sources and recruitment techniques and so on. The appraisers rate performance of managers by assessing weights to the scale and appraise only those areas which are clear and are supported by adequate knowledge. This technique measures the performance of managers in managing organisational environment. Feedback is a planned, systematic intervention in the life of an individual who is capable of choosing the goal and the direction of his own development. The purpose of counselling is to help the employee aware of his own performance, his strengths and weaknesses, opportunities available for performance development and the threats in the form of technological change etc. Performance counselling can be done in the form of performance interview by the superior. The interview provides the employee the feedback information and an opportunity to the appraiser to explain the employee his rating, the traits & behaviour he has taken into consideration for appraisal etc. It also gives the opportunity to employee to explain his views about the rates, standards or goals, rating scale, internal & external environmental causes for low level of performance, his resources responsible for performance etc.

Managerial Appraisal :

Feedback :

The Post Appraisal Interview :


113 It helps both the parties to review standards, set new standards based on the reality factors and helps the appraiser to offer his suggestions, help, guide and coach the employee for his advancement. The objective of the post appraisal interviews are, - To let employees know where they stand - To help employees do a better job by clarifying what is expected of them. - To plan opportunities for development and growth - To strengthen the superior-subordinate working relationship by developing a mutual agreement of goals.


A grievance is a specific, formal notice of employee dissatisfaction expressed through an identified procedure. Any dissatisfaction or feeling of injustice in connection with ones employment situation that is brought to the notice of the management .

Definition :

A type of discontent which must always be expressed. A grievance is usually more formal in character than a compliant. It can be valid or ridiculous and must grow out of something connected with company operations or policy. It must involve an interpretation or application of the provisions of the labour contract . Flippo

Need for a Grievance Procedure :

Grievance procedure is necessary for any organisation due to following reasons. Most grievance seriously disturb the employees. This may affect their morale, productivity and their willingness to cooperate with organisation. If an explosive situation develops, this can be promptly attended to if a grievance handling procedure is already in existence. It is not possible that all the complaints of the employees would be settled by first-time supervision, for these supervisors may not have had a proper training for the purpose. It serves a check on the arbitrary actions of the management because supervisors know that employees are likely to see to it that their protest does reach the higher management.

Meaning :
Discipline is management action to encourage compliance with organisation standards.

114 It is a form of training that seeks to correct and mould employee knowledge, attitudes and behaviour so that the worker strives willingly for better cooperation and performance. It is a procedure that corrects or punishes a subordinate because a rule or procedure has been violated. To serve as an orderly channel for reducing pressures and anxieties of employees. To serve as a mechanism for equitable, just interpretation and application of negotiated items. To prevent arbitrary, capricious and unreasonable actions against employees.

Purposes / Objectives of Grievance Procedures :

Causes / Sources or Grievances :

Grievances arising out of working conditions : - Poor physical conditions of work place - Very tight production standards - Non-availability of proper tools and machines - Unplanned changes in schedules and procedures - Failure to maintain proper discipline - Mismatch of the worker with the job - Poor relationship with the supervisor Grievances arising from management policy : - Wage rates and method of wage payment - Overtime and incentre schemes - Seniority - Transfers - Promotion, demotion and discharge - Lack of opportunities for career growth - Penalties imposed for misconduct - Leave - Hostility towards trade union. Grievances arising alleged violation of : - The collective bargaining agreement - Company rules and regulations - Post practice - Central or state laws - Responsibilities of management Grievances arising out of personal maladjustment : - Over-ambition - Excessive self-esteem - Impractical attitude to like

Types of Grievances :
Legitimate Grievances : - It occur when there is reasonable cause to think there has been a contract violation.

115 - Misunderstanding of the agreement causes the legitimate grievance. Imagined Grievances : - It occur when employees believe that the agreement has been violated even though management is exercising its contract rights reasonably. Political Grievances : - It occur when a complaint is pursued to further someones political aspirations. These are the most difficult to solve.

Principles of Grievances :
Management must accept the responsibility for addressing and settling all legitimate employee grievances in a fair manner. It is best to solve grievances as promptly and as close as practically possible to the point of origin. All employees who file grievances must enjoy guaranteed protection against any form of discrimination, victimisation. The utilisation of the grievance procedure should not unnecessarily disrupt the operation of the organisation.

Grievance Procedure / Redressal Methods :

Participants Step 4 Step 3 Step 2 agent Step 1 Top Management Middle Management Arbitrator Top Union Leadership Union committee or business

First-level Supervisor

Shop steward

Aggrieved Employee Step 1 -Employee & Supervisor : - The employee verbally discusses the alleged contract violation with his/her immediate supervisor. - The purpose of the discussion phase is to resolve the grievance as early and as informally as possible. o Union Steward and Supervisor :

116 If agreement is not reached, then a written grievance is filed by the grievant or the shop steward acting on the grievants behalf. The first line supervisor, that management official responsible for direct supervisor of unionized employees, then answers the employees grievance in writing.

Step 2 - Union Grievance Committee and Middle Management : - The union grievance committee person & managements dept. superintendent join the first level participants to discuss the supervisors first step written answer to the grievance. - Both these individuals are aware of administrative precedent throughout the entire shop; their main role is to determine whether the grievance should be resolved at this stage on the basis of this precedent. Step 3 - Union Grievance Committee & Top Management : - Meeting involves the top managerial persons such as the plant manager, superintendent of and members of the unions grievance committee in addition to the participants in the 2nd step. - The 3rd step answer is usually written by the plant manager because the decision probably will have plant wide implications. Step 4 - Representatives & Arbitrator : - Arbitration means of settling disputes arising from different interpretations of a contract using a third party. - Arbitration involves representatives of both sides and a neutral third party called the arbitrator. - The arbitrator hears the grievance and makes a final binding decision. - Both mgmt. and union officials select the arbitrator & typically share the arbitrators expenses. - The arbitrator has the complicated task of interpreting the provisions of the labour agreement, the intent of the parties, past practice and the credibility of the testimony and evidence.

TIME MANAGEMENT Introduction :

Time is a very precious resource. It cannot be stored. It can only be spent. The way people spend their time determines their success. Time management is not about working faster or working longer, it is about spending time based on priorities.

117 It ensures that time is spent on activities that are important and not on time wasting or unimportant activities. It helps an individual to perform activities effectively and efficiently. Improving the productivity of an organisation. It helps to identify the time wasters and ones patter of spending time. It also helps in balancing work and the personal life. While the improvements in technology are providing access to information at a faster pace, helping in faster decision-making, they are putting added pressure on people in the form of tougher deadlines and targets. Time Logs : o The logs used by employees to fill in a detailed account of the time spent at the workplace are called time log. o This can be designed for weekly, fortnightly or monthly use. o It can be used to identify the time wasting activities of an individual and the amount of time spent on such activities. o It can be used to analyze the general time spending patterns of a manager. o After identifying the major time spending patterns, a daily time log can be used. o Daily time log allows managers to analyze their productivity in a day. o It gives them an idea about the appropriate time required to perform any activity. o This logs improve the performance of the managers and enhance the productivity of their organisation as a whole. o Effective time management can be done through the use of time logs in planning and by scheduling and delegating activities while taking care to avoid the wastage of time. Time Wasters : Internal Time Wasters o Personal disorientation : A managers habits are reflected in the way he/she organizes his/her workplace and work. Disorganized managers may have cluttered desks, which require them to search for things and important files, leading to a waste of time. o Procrastination : It means postponing or avoiding taking important decisions or tasks because they are difficult or unpleasant.

Important of Time Mgmt. :

Analysis of Time :

118 Procrastinate due to fear of failure or for the fear of making a wrong decision. Managers who procrastinate spend a lot of time in analysing the problem, it results in wastage of time.

o Excessive socialization : It interferes with work, diverts attention and affects the quality of work. Spending too much time gossiping with colleagues, solving others problems and discussing personal issues with others. Manager should socialize after office or work hours. This reduces loss of concentration and loss of valuable work hours. o Poor communication : Communicating inaccurate, unnecessary and ineffective information can result in a waste of time for the parties involved in the communication. Its a result of poor listening, forgetting or interruptions in a conversation. Good Communication process should convey information without creating any misunderstandings. o Inefficiency : Managers in todays organisation have many responsibilities and many activities to perform so many activities within a limited time span, they need to work rapidly. This rapid work often results in mistakes and hence affects the quality of the work, leading to it having to be redone. External Time Wasters o Excessive number of meetings o Interruptions : Are unexpected time wasters. In the phone of unexpected visitors & phone calls. o Excessive usage of Internet : Time Abusers : o Are people who have the constant fear of being evaluated or being questioned about their work by a superior and so resort to procrastination. o Other fears they could have are fear of confrontation and fear of criticism. o Its 3 types are as follows : The preemptive / proactive :

119 To meet deadlines, they work quickly and carelessly and often produce poor quality work, which needs to be redone. The people pleaser : Pleasures take on more responsibilities than they can handle. They rarely say no. Such over commitment may lead to their spending too much of time on doing unproductive tasks and delaying the completion of important ones. The perfectionist / the analyser : They take more time than allotted to perform even simple tasks.

Planning Time and Resources :

Need for Planning Time Components of a plan o Time Factor o Rewards o Group Tasks Types of planning o Longterm (overall goals & objectives on the basis of SWOT analysis) o Short-term o Daily plans Strategies for planning time o A to-do list helps them to finish tasks on time and to identify and complete unfinished tasks of the previous day and to avoid overlooking incomplete tasks. o Broader perspective of future events and scheduling them. o Examining the use of time by planning, prioritizing and controlling. o Managing oneself.

Matrix of Time Management :

Urgent Important Quadrant I Activities : a. Crises b. Pressing problems c. Deadline-driven projects d. Deadlines planning, recreation Not Urgent Quadrant II Activities : a. Prevention b. Relationship building c. Recognizing opportunities,


120 Not Important Quadrant I Activities : a. Interruptions b. Some mail c. Some meetings Quadrant II Activities : a. Trivia, busy work b. Some mail c. Some phone

calls d. Proximate, pressing matterd. Time wasters e. Popular activities e. Pleasant activities.

Setting Goals and Objectives:

Setting Goals Advantage of Goals Scheduling Delegating Biological Clock o Each individual has an internal body clock that determines the time at which he/she works best and the time at which he/she is very dull. o They should plan to perform difficult activities during their active hours and pleasant or simple activities during their dull hours. Prioritize : o Should prioritize various tasks based on their importance. Spiritual Planning : o Should adopt a ritual like having some quiet time in the cabin, listening to soothing music etc., then prepare a schedule for the day. Accessbility : o Managers should let everyone know their work hours and schedules. Divide Time : o Should divide their time between their personal and work related activities.

Planning to Achieve Goals :

Controlling Time Wasters :