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Human Resources Management is defined as policies and practices Involved in carrying out the people or human resource aspects of a management position, including recruiting, screening, training, rewarding and appraising And providing direction for the people who work in the organization. It can also be performed by line managers. Human Resource Management is the organizational function that deals with issues related to people such as compensation, hiring, performance management, organization development, safety, wellness, benefits, employee motivation, communication, administration, and training. HRM is also a strategic and comprehensive approach to managing people and the workplace culture and environment. Effective HRM enables employees to contribute effectively and productively to the overall company direction and the accomplishment of the organization's goals and objectives. Human Resource Management is moving away from traditional personnel, administration, and transactional roles, which are increasingly outsourced. HRM is now expected to add value to the strategic utilization of employees and that employee programs impact the business in measurable ways. The new role of HRM involves strategic direction and HRM metrics and measurements to demonstrate value.

Human Resource Management features include:

1. 2. 3. 4. Organizational management Personnel administration Manpower management Industrial management.

HRM functions are changing business environment

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. Conducting job analyses (determining the nature of each employees job). Planning labour needs and recruiting job candidates Recruitment Selecting job candidates Orienting and training new employees Managing wages and salaries (compensating employees) Providing incentives and benefits Appraising performance Communicating (interviewing, counseling, disciplining) Training and developing managers Building employee commitment.


1. Environmental Challenges - Environmental challenges refer to forces external to the firm that are largely beyond managements control but influence organizational performance. They include: rapid change, the internet revolution, workforce diversity, globalization, legislation, evolving work and family roles, and skill shortages and the rise of the Service sector. Six important environmental challenges today are: Rapid Change - If they are to survive and prosper, they need to adapt to change quickly and effectively. Human resources are almost always at the heart of an effective response system. Work force diversity - Firms that formulate and implement HR strategies that capitalize on employee diversity are more likely to survive and prosper. Globalization - One of the most dramatic challenges facing as they enter the twenty-first century is how to compete against foreign firms, both domestically and abroad. Weak response to international competition may be resulting in upwards layoffs in every year. Human resources can play a critical role in a business's ability to compete head-to-head with foreign producers. Legislation - How successfully a firm manages its human resources depends to a large extent on its ability to deal effectively with government regulations. Operating within the legal framework requires keeping track of the External legal environment and developing internal systems to ensure compliance and minimize complaints. Many firms are now developing formal policies on sexual harassment and establishing internal administrative channels to deal with alleged incidents before employees feel the need to file a lawsuit. Technology - The world has never before seen such rapid technological changes as are presently occurring in the Computer and telecommunications industries. One estimate is that technological


change is occurring so rapidly that individuals may have to change their entire skills three or four times in their career. Skill Shortages and the Rise of the Service Sector - Expansion of service-sector employment is linked to a number of factors, including changes in consumer tastes and preferences, legal and regulatory changes, advances in science and technology that have eliminated many manufacturing jobs, and changes in the way businesses are organized and managed. 2. Organizational Challenges - Organizational challenges refer to concerns that are internal to the firm. However, they are often a byproduct of environmental forces because no firm operates in a vacuum. These issues include: Competitive position (cost, quality, and distinctive capability), decentralization, downsizing, organizational Restructuring, self-managed work teams, small businesses, organizational culture, technology, and Outsourcing. HR policies can influence an organization's competitive position by Controlling costs, improving quality, and creating distinctive capabilities, Restructuring 3. Individual Challenges - Human resource issues at the individual level address the decisions most pertinent to specific employees. These individual challenges almost always reflect what is happening in the larger organization. For instance, technology affects individual productivity; it also has ethical ramifications in terms of how information is used to make HR decisions (for example, use of credit or medical history data to decide whom to hire).The individual issues include matching people and organization, ethics and social responsibility, productivity, empowerment, brain drain, and job insecurity.

Different Perspectives of HR Management

1. The Normative Perspective - The normative perspective of human resource management bases itself on the concepts of hard HRM and soft HRM. Hard HRM - Hard HRM is the basis for the traditional approach toward human resource management. It stresses the linkage of functional areas such as manpower planning, job analysis, recruitment, compensation and benefits, performance evaluations, contract negotiations, and labor legislations to corporate strategy. This enforces organization interests over the employees' conflicting ambitions and interests. Soft HRM -Soft HRM is modern approach to strategic human resource management. This model considers human capital as assets rather than resources and lays stress on organizational development, conflict management, leadership development, organizational culture, and relationship building as a means of increasing trust and ensuring performance through collaboration. This approach works under the assumption that what is good for the organization is also good for the employee. 2. The Critical Perspective - The critical perspective of human resource management is a reaction against the normative perception. This perspective espouses a gap between rhetoric, as organizations claim to follow soft HRM policies when they actually enforce hard HRM. 3. The Behavioral Perspective - This theory holds that the purpose of human resource intervention is to control employee attitudes and behaviors to suit the various strategies adopted to attain the desired performance. This perspective thus bases itself on the role behavior of employees instead of their skills, knowledge, and abilities. 4. The Systems Perspective - The systems perspective describes an organization in terms of input, throughput, and output, with all these systems involved in transactions with a surrounding environment. The organized activities of employees constitute the input, the transformation of energies within the system at throughput, and the resulting product or service the output. A negative feedback loop provides communications on discrepancies. 5. Agency or Transaction Cost Perspective - the agency or transaction cost perspective, which holds the view that the strong natural inclination of people working in groups is to reduce their performance and rely on the efforts of others in the group. When one person delegates responsibility to another person, conflicts of interests invariably arise. The human resource department needs to adopt the approach that minimizes transaction cost to the organization.


Our purpose is to search continuously for opportunities where we can make unique or valuable contributions to the development and application of real world signal processing technology. In so doing, we strive to offer our customers products that improve the performance, quality and reliability of their products, and thereby increase the productivity of human and capital resources, and contribute generally to upgrading the quality of life and the advancement of society. Them our growth objective is the achievement of an average annual sales growth rate of at least 25% per year. Our strategy to do this is based in part on the penetration of worldwide served market segments that are themselves growing at an average annual rate of 15% or more. Thus for us, no growth means extinction, while growth in excess of the growth of our served markets is a requirement for increased market strength. We accomplish this growth primarily by continuously broadening the range of our product line through internal development, but also through venture investments in new companies and through selected acquisitions that fall within the scope of our business definition. Our financial goals include earning 19% on invested capital, 17.5% operating profit before tax and 8.6% profit after tax (net income). With this level of financial performance we can, without taking unreasonable risks, finance our growth while offering our stockholders an attractive opportunity for capital appreciation.

Our Vision - To provide a parallel investment vehicle and safety net for the state-sponsored unit trust scheme Our Mission
1. To broaden income base to provide price support, liquidity support, dividend support mechanisms. 2. To build a pool of quality assets to boost revenue, enhance profitability and to achieve consistent net cash inflows.

Our Objectives
1. To achieve optimum investment returns through effective strategies via smart collaboration with dynamic organizations. 2. To be a player in the advancement and transformation of Sarawaks economic landscape by optimizing the abundant resources of the State, while remaining socially and environmentally responsible. 3. To uphold excellent team work, harnessing the creativity and talent of every team-member in pursuit of shared visions. 4. To ultimately uplift the economic well-being of the Community in Sarawak.


HRP is the process by which an organization ensures that it has the right number and kinds of people, at the right places, at the right time and that these people are capable of performing their tasks effectively and efficiently. This helps the organization to achieve its overall objectives. Human resource planning has two components: requirements and availability. Forecasting human resource requirements involves determining the number and type of employees needed by skill level and location. In order to forecast availability, the human resource manager looks to both internal sources (presently employed employees) and external sources (the labor market). When employee requirements and availability have been analyzed, the firm can determine whether it will have a surplus or shortage of Employees. If a shortage is forecasted, the firm must obtain the proper quantity and quality of workers from outside the organization. In this case, External recruitment and selection is required.


1. 2. 3. 4. Determine the impact of organizational objectives on specific organizational unit Define the skills required to meet objectives (demand for Human Resource) Determine additional human resource requirements in light of current HR (net HR requirements) Develop action plan to meet the anticipated HR needs

Need for Human Resource Planning

1. To carry on its work, each organization needs competent staff with the necessary qualifications, skills, knowledge, work experience and aptitude for work.


2. Since employees exit and organization both naturally and unnaturally, there is an on-going need for hiring replacement staff to augment employee exit. Otherwise, work would be impacted. 3. In order to meet the need for more employees due to organizational growth and expansion, this in turn calls for larger quantities of the same goods and services as well as new goods. 4. To meet the challenge of the changed needs of technology / product/service innovation the existing employees need to be trained or new skill sets induced into the organization. 5. When organization is faced with severe revenue and growth limitations it might need to plan well to manage how it will reduce its workforce. Options such as redeployment and outplacement can be planned for and executed properly.

Importance of HRP
1. 2. 3. 4. 5. 6. Globalization of Business New Technologies The changing skill levels in the Workforce The changing demographics of the workforce Mergers and Acquisitions Legal developments

Requirements for effective HR planning

1. 2. 3. 4. HR personnel understand the HR planning process Top management is supportive The communications between HR staff and line management are healthy The HR plan is integrated with the organizations strategic business plan

Career planning refers to the process by which an individual determines his/her career objectives and plans the path to achieve these objectives. The process of an employee planning his/her career goals is known as individual career planning. The process by which the management plans career goals for its employees is known as organizational career planning. The career planning on this stage can help to choose the appropriate university or college and the appropriate major. After the graduation the career planning helps to find the direction of the professional life and to form the business plan of the future career. During the life the person can make the changes in the career planning and it is very important to do it in time. The career planning helps to choose the right way in the professional life. If it is too difficult for person to determinate in the professional goals, there are a lot of tests, which can help to choose the appropriate profession and field. The right career planning in the youth guarantee the success in the future a method of doing something that is worked out in detail before any career activity is actually begun. The planning process usually includes the following steps: Self-Assessment, identifying and exploring career options; setting goals and planning action steps to achieve those goals; taking action in accordance with the career plan

Features of career planning

1. Developmental guidance process It identifies their strengths and needs and builds a career plan based on the same process used by professional career planners. 2. Research-based assessment system It provides an efficient assessment of a student's career-relevant interests, abilities and job values as part of the career counseling process. 3. World-of-Work Map - The detailed career descriptions with occupation salaries focus on primary work tasks and help to focus on preparing for meaningful and appropriate employment. 4. Occupation database It provides detailed information on career descriptions in the current labor market, with many ways to search the database. 5. Educational options - It Helps individuals identify postsecondary education or training options that fit their career plan. 6. Job-seeking skills - Helps individuals prepare for a successful job search by learning good interviewing skills, how to write a resume and cover letter, and more.


Scope of career planning
1. 2. 3. 4. 5. 6. Human resource forecasting and planning Career information Career counseling Career pathing Skill assessment training Succession planning

Five Processes of Career Planning

1. INITIATION - Initiation means to set in motion. Clients become discouraged or lose hope and strategies to secure meaningful engagement are necessary. The initiation process addresses three core issues: Establishing an effective counseling relationship. Determining current motivation for career planning. Building relevance for career planning. 2. EXPLORATION - Exploration helps clients discover ways to implement aspects of their vision while concomitantly attending to issues of meaning and personal context. This is most effectively done by capitalizing on the renewed sense of energy and hope that arises during initiation. While formal assessment and occupational information sources may be useful, informal strategies tend to produce more meaningful, more accurate, and more enduring results. These include information interviewing, relational networking, job shadowing, and work experience. 3. DECISION-MAKING - Decision-making has one dominant issue: How to select the most appropriate option from the range of alternatives discovered to date. When initiation and exploration have been thorough, a "right choice" crystallizes for most clients. Formal strategies may then be used to confirm a choice, rather than determine a choice. 4. PREPARATION - Preparation focuses on planning the specific steps required to implement the choices made earlier. Preparation results in a detailed, concrete plan for goal attainment and involves two key issues: Developing an action plan which may include Developing prerequisite skills and resources for implementation. 5. IMPLEMENTATION - the client carries out the action plan. Two strategies govern implementation: Developing support. Developing systems for feedback and reward.


Succession planning is a process whereby an organization ensures that employees are recruited and developed to fill each key role within the company. Through your succession planning process, you recruit superior employees, develop their knowledge, skills, and abilities, and prepare them for advancement or promotion into ever more challenging roles. Through your succession planning process, you also retain superior employees because they appreciate the time, attention, and development that you are investing in them. To effectively do succession planning in your organization, you must identify the organizations long term goals. You must hire superior staff. You need to identify and understand the developmental needs of your employees. You must ensure that all key employees understand their career paths and the roles they are being developed to fill you need to focus resources on key employee retention. You need to be aware of employment trends in your area to know the roles you will have a difficult time filling externally

Why Succession planning is a process is required

1. 2. 3. 4. 5. 6. 7. 8. 9. Bench strength. Have a pool of ready-now candidates to fill critical leadership positions. To retain more of your top performers and they see opportunity to advance their careers. Creates loyalty To reduce recruiting costs. To make sure the right people are in the right positions. Opportunity for leaders to cascade corporate goals for future business success Reduce administrative time and costs Optimize your teams talent to create a competitive advantage Easily manage succession, development, career, and assessment planning and performance appraisals Prepare for the future and promote superior talent from within for sustaining leadership in business


10. Optimum retention of key leaders and reduce turnover/reduce attrition rates 11. Determine what activities and processes create value in your business.

What is required before you begin?

1. 2. 3. 4. 5. 6. 7. There are clearly defined leadership competencies and standards required for success Structured performance feedback is provided to assess progress in developing leadership competencies Succession planning is integrated with recruiting, selection, development and retention processes Strong well developed coaching skills by leaders The leadership and commitment of senior management Well developed interpersonal leadership skills Well communicated vision and values philosophy throughout the organization

Difference between Career Planning and Succession Planning

1. Career Planning Career planning is the process or activities offered by an organization to the individuals or its employees to identify their strength, weaknesses, specific goals and the jobs they would like to occupy. Through career planning, the employees, individuals, identify and implement steps to attain their career goals. In career planning, an organization is concerned with strategic questions of career development. Career Planning is a must for all managerial cadres and posts. Career Planning's basis is long term till the retirement of the employment contract. The important objective of career planning is to explore the opportunities to enable the individual employees to grow and to develop and also to encourage or motivate them for self-development. 2. Succession Planning Succession planning is the important process which involves identification of individuals or employees as the possible successors to the key or very senior positions in an organization which such position become vacant. Thus, in short, succession planning focuses on the identification of vacancies and locating probable successor. In succession planning, the focus of attention is the persons who can occupy the vacant post. Succession planning is essential for all those who operate in key functional areas and also for key managerial cadres that are likely to become vacant. Succession Planning is usually for 2 to 5 or 2 to 7 years period for an individual but it is a continuous exercise for an organization. The important objective of succession planning is to identify the most suitable, potentially qualified, efficient, skilled and experienced employees or individuals to occupy or succeed to key positions when they become vacant.

Job analysis is a systematic approach to defining the job role, description, requirements, responsibilities, evaluation, etc. It helps in finding out required level of education, skills, knowledge, training, etc for the job position. It also depicts the job worth i.e. measurable effectiveness of the job and contribution of job to the organization. Thus, it effectively contributes to setting up the compensation package for the job position. It is the procedure through which you determine the duties and nature of the jobs and the kinds of people who should be hired for them. You can utilize the information it provides to write job descriptions and job specifications, which are utilized in recruitment and selection, compensation, performance appraisal, and training. There are two outcomes of job analysis: Job description Job specification

The information collected under job analysis is:

1. Nature of jobs required in a concern. 2. Nature/ size of organizational structure. 3. Type of people required to fit that structure.


4. The relationship of the job with other jobs in the concern. 5. Kind of qualifications and academic background required req for jobs. 6. Provision of physical condition to support the activities of the concern.

Steps in Job Analysis

1. Identify how the information will be used because that will determine what data will be collected and how it should be collected. Interviewing and position analysis questionnaire are some examples of data collection techniques. 2. Review relevant background information, such as organization charts, process charts, and job descriptions. 3. Select representative positions to analyze because there may be too many similar jobs to analyze, and it may not be necessary to analyze them all. 4. Analyze the job by collecting data on job activities, required employee behaviors, working conditions, and human traits and abilities needed to perform the job. 5. Review and verify the job analysis information with job incumbents to confirm that it is factually correct and complete. 6. Develop a job description and job specification from the job analysis information.

Uses of Job Analysis Information

1. Recruitment and Selection Job descriptions and job specifications are formed from the information gathered from a job analysis, which help management decide what sort of people to recruit and hire. 2. Compensation The estimated value and the appropriate compensation for each job is determined from the information gathered from a job analysis. 3. Performance Appraisal Managers use job analysis to determine a jobs specific activities & performance standards. 4. Training Based on the job analysis, the job description should show the jobs jobs required activities and skills. 5. Discovering Unassigned Duties Job analysis can help reveal unassigned duties. 6. EEO Compliance The Uniform Guidelines on Employee Selection stipulate that job analysis is a crucial step in validating all major personnel el activities.

Advantages of Job Analysis

Job analysis helps the personnel manager at the time of recruitment and selection of right man on right job. It helps him to understand extent and scope of training required in that field. It helps in evaluating the job in which the worth of the job has to be evaluated. In those instances where smooth work force is required in concern. When he has to avoid overlapping of authorityauthority responsibility relationship so that distortion in chain of command doesnt exist. 6. It t also helps to chalk out the compensation plans for the employees. 7. It also helps the personnel manager to undertake performance appraisal effectively in a concern. 1. 2. 3. 4. 5.


Job description refers the requirements an organization looks for a particular job position. It states the key skill requirements, the level of experience needed, level of education required, etc. It also describes the roles and responsibilities attached with the job position. The roles and responsibilities are key determinant factor in estimating the level of experience, education, skill, etc required for the job. A job description may include relationships with other people in the organization: Supervisory level, managerial requirements, and relationships with other colleagues. It also helps in benchmarking the performance standards. The preparation of job description is very important before a vacancy is advertised. It tells in brief the nature and type of job.

This type of document is descriptive in nature and it constitutes all those facts which are related to a job such as:
1. 2. 3. 4. 5. 6. Title/ Designation of job and location in the concern. The nature of duties and operations to be performed in that job. The nature of authority- responsibility relationships. Necessary qualifications that is required for job. Relationship of that job with other jobs in a concern. The provision of physical and working condition or the work environment required in performance of that job.

Advantages of Job Description

1. It helps the supervisors in assigning work to the subordinates so that he can guide and monitor their performances. 2. It helps in recruitment and selection procedures. 3. It assists in manpower planning. 4. It is also helpful in performance appraisal. 5. It is helpful in job evaluation in order to decide about rate of remuneration for a specific job. 6. It also helps in chalking out training and development programmes.

Limitations of Job Description

1. Job descriptions may not be suitable for some senior managers as they should have the freedom to take the initiative and find fruitful new directions. 2. Job descriptions may be too inflexible in a rapidly-changing organisation, for instance in an area subject to rapid technological change. 3. Other changes in job content may lead to the job description being out of date. 4. The process that an organisation uses to create job descriptions may not be optimal.


Job specifications, also known as man or employee specifications, is prepared on the basis of job specification. It specifies the qualities required in a job incumbent for the effective performance of the job. It helps to developed from the job analysis. Ideally, also developed from a detailed job description, the job specification describes the person you want to hire for a particular job. It provides detailed characteristics, knowledge, education, skills, and experience needed to perform the job, with an overview of the specific job requirements. Job specification is the qualities and abilities which the Job holder is required to possess in order to obtain that particular Job or it is the minimum requirement to perform that particular job satisfactorily. Job position refers to the designation of the job and employee in the organization. Job position forms an important part of the compensation strategy as it determines the level of the job in the organization. For example management level employees receive greater pay scale than non-managerial employees. Job specification translates the job description into human qualifications so that a job can be performed in a better manner.

Job specification helps in hiring an appropriate person for an appropriate position. The contents are:
1. 2. 3. 4. Job title and designation Educational qualifications for that title Physical and other related attributes Physique and mental health


5. Special attributes and abilities 6. Maturity and dependability 7. Relationship of that job with other jobs in a concern.


Basic contents of a job specification are as follows:

1. Personal characteristics such as education, job experience, age, sex, and extra co-curricular activities. 2. Physical characteristics such as height, weight, chest, vision, hearing, health, voice poise, and hand and foot coordination, (for specific positions only). 3. Mental characteristics such as general intelligence, memory, judgment, foresight, ability to concentrate, etc. 4. Social and psychological characteristics such as emotional ability, flexibility, manners, drive, conversational ability, interpersonal ability, attitude, values, creativity etc.

Components of a Job Specification

1. Experience: Number of years of work experience required for the selected candidate. Note whether the position requires progressively more complex and responsible experience, and supervisory or managerial experience. 2. Education: State what degrees, training, or certifications are required for the position. 3. Required Skills, Knowledge and Characteristics: State the skills, knowledge, and personal characteristics of individuals who have successfully performed this job. Or, use the job analysis data to determine the attributes you need from your ideal candidate.

Advantages of Job Specification

1. 2. 3. 4. 5. 6. It is helpful in preliminary screening in the selection procedure. It helps in giving due justification to each job. It also helps in designing training and development programmes. It helps the supervisors for counseling and monitoring performance of employees. It helps in job evaluation. It helps the management to take decisions regarding promotion, transfers and giving extra benefits to the employees.


Job characteristics model was developed by J. Richard Hack man and Greg Oldham which focuses on five important dimensions of jobs.

These five important areas are: skill variety, task identity, task significance, autonomy and feedback.
1. Skill variety is the degree to which a job requires a variety of different activities so the worker can us a number of different skills and talent. 2. Task identity is the degree to which a job requires completion of a whole and identifiable piece of work. 3. Task significance is the level to which a job has a substantial impact on the lives or work of other people. 4. Autonomy is the point to which a job provides substantial freedom and discretion to the individual in scheduling the work and in determining the procedures to be used in carrying it out. 5. Feedback is the extent to which carrying out the work activities required by a job results in the individual obtaining direct and clear information about the effectiveness of his or her performance. The first three affect the meaningfulness of job. Whereas for autonomy are expected to engender greater feelings of responsibility on the part of workers, and are expected to provide clear cues to workers about the quality of work, for feedback, provides knowledge of the actual results of the work activities.



It is the discovering of potential of applicants for actual or anticipated organizational vacancies. It actually links together those with jobs obs and those seeking jobs. It is process of attracting, screening, and selecting qualified people for a job. Every organization must be able to attract a sufficient number of the job candidates who have the abilities and aptitudes needed to help the organization organization to achieve its objectives. An effective employee selection procedure is limited by the effectiveness of recruiting process. Outstanding job candidates cannot be selected if they are not included in the applicant pool. The recruitment process also interacts interacts with other personnel functions, especially performance evaluation compensation training and development and employee relations. Recruiting is typically a human resource function. In planning recruiting activities, an organization needs to know how many applicants must be recruited. Since some applicants may not be satisfactory an others may not accept the job offers, an organization must recruit more applicants than it expects to hire. Yield Ratios help organizations decide how many employees to recruit cruit for each job opening. These ratios express the relationship between the numbers of people at one step of the recruitment process relative to the number of people who will move to the next step. Thus the purpose of recruitment is to locate sources of manpower to meet job requirements and job specifications. A good recruitment policy is based on the organization's objectives, complies with the government policy, and results in successful placements in the organization at the minimum cost and time. It provides provides the basic framework in the form of guidelines, procedures and sources for recruitment. Flippo's definition: "It is a process of searching for prospective employees and stimulating and encouraging them to apply for jobs in an organization."


Factors affecting Recruitment:


1. The size of the organization. 2. The employment conditions in the community where the organization is located. 3. The effects of past recruiting efforts which show the organization's ability to locate and retain the good performing people. 4. Working conditions, salary and benefit packages offered by the organization. 5. Rate of growth of the organization. 6. The future expansion and production programs. 7. Cultural, economic and legal factors.

Steps of a Recruitment Process:

1. 2. 3. 4. 5. A recruitment policy A recruitment organization A forecast of manpower The development of sources of recruitment Different techniques used for utilizing these sources & a method of assessing the recruitment program

Objectives of Recruitment
1. To attract people with multi-dimensional skills and experiences that suits the present and future Organizational strategies. 2. To induct outsiders with a new perspective to lead the company. 3. To infuse fresh blood at all levels of the organization. 4. To develop an organizational culture that attracts competent people to the company. 5. To search or head hunt people whose skills fit the companys values. 6. To devise methodologies for assessing psychological traits. 7. To seek out non-conventional development grounds of talent. 8. To search for talent globally and not just within the company. 9. To design entry salary that competes on quality but not on quantum. 10. To anticipate and find people for positions that does not exist yet.

Source of Recruitment:
1. Internal Recruiting Sources: When job vacancies exist, the first place that an organization should look for placement is within itself. Organizations present employees generally feel that they deserve opportunities to be promoted to higher-level positions because of their service and commitment to organization. Also recruiting among present employees is less expensive than recruiting from outside the organization. The major forms of the internal recruiting include: 1. Promotion from within. 2. Job posting. 3. Contacts and referrals Advantages of Internal Recruitment: Provides greater motivation for good performance. Provides greater opportunities for present employees Provides better opportunity to assess abilities Improves morale and organizational loyalty Enables employees to perform the new job with little lost time Disadvantages of Internal Recruitment: Creates a narrowing thinking and stale ideas Creates pressures to compete Creates homogeneous workforce Chances to miss good outside talent Requires strong management development programs Specially to train for technology. 2. External Recruiting Sources: A broad variety of methods are available for external recruiting. An organization should are fully assess the kinds of positions it wants to fill and select the recruiting methods



that are likely to reduce the best results. There are some employee needs that a firm must fill through external recruitment. Campus Recruitment Competitors and other Firms Self-Employed Workers Older Individuals Public Employment exchange

The selection procedure is concerned with securing relevant information from applicants and selecting the most suitable among them, based on an assessment of how successful the employee would be in the job, if he were placed in the vacant position. It is the process of evaluating the qualifications, experience, skill, knowledge, etc, of an applicant in relation to the requirements of the job to determine his suitability for the job. It is a judgmental process this can vary from organization to organization some steps performed and considered important by one organization can be skipped by other organization. Selection is the process of examining the applicants with regard to their suitability for the given job or jobs, and choosing the best from the suitable candidates and rejecting the others. Thus, you will notice that this process is negative in nature in the sense that rejection of candidates is involved.

Selection Criteria or factors:


The selection process has two basic objectives:

To predict which applicant would be the most successful if selected for the job To sell the organization and the job to the right candidate.

Process or Steps of selection: - The process of selection is different in different companies; however a general
procedure of selection can be framed. This process of selection can be explained with the help of following diagram. 1. Job analysis: - The very first step in the selection procedure is the job analysis. The HR department prepares the job description and specification for the jobs which are vacant. This gives details for the jobs which are vacant. This gives details about the name of the job, qualification, qualities required and work conditions etc. 2. Advertisement: - Based on the information collected in step 1, the HR department prepares an advertisement and publishes it in a leading news papers. The advertisement conveys details about the last date for application, the address to which the application must be sent etc. 3. Application blank/form:-Application blank is the application form to be filled by the candidate when he applies for a job in the company. The application blank collects information consisting of 4 parts- 1) Personal details 2) Educational details 3) Work experience 4) Family background. 4. Written test:-The applications which have been received are screened by the HR department and those applications which are incomplete are rejected. The other candidates are called for the written test. Arrangement for the written test is looked after the HR department i.e. question papers, answer papers, examination centers and hall tickets etc. 5. Interview: - Candidates who have successfully cleared the test are called for an interview. The entire responsibility for conducting the interview lies with the HR department i.e. they look after the panel of interviewers, refreshments, informing candidates etc. 6. Medical examination: - The candidates who have successfully cleared the interview are asked to take a medical exam. This medical exam may be conducted by the organization itself (army). The organization may have a tie up with the hospital or the candidate may be asked to get a certificate from his family doctor. 7. Initial job offer:- Candidates who successfully clear the medical exam are given an initial job offer by the company stating the details regarding salary, terms of employment, employment bond if any etc. The candidate is given some time to think over the offer and to accept or reject.



8. Acceptance/ rejection: - Candidates who are happy with the offer send their acceptance within a specified time limit to show that they are ready to work with the company. 9. Letter of appointment/final job offer: - Candidates who send their acceptance are given the letter of appointment. The letter will state the name of the job. The salary and other benefits, number of medical leaves and casual leaves, details of employment bond if any etc. It will also state the date on which the employee is required to start duty in the company. 10. Induction: - On the date of joining the employee is introduced to the company and other employees through am elaborate induction program.

Types of selection test

1. Aptitude test:-Aptitude tests are test which assess the potential and ability of a candidate. It enables to find out whether the candidate is suitable for the job. The job may be managerial technical or clerical. The different types of aptitude test are Mental ability/mental intelligence test: - This test is used to measure the overall intelligence and intellectual ability of the candidate to deal with problems. It judges the decision making abilities. Mechanical aptitude test: - This test deals with the ability of the candidate to do mechanical work. It is used to judge and measure the specialized knowledge and problem solving ability. It is used for technical and maintenance staff. Psycho motor test: - This test judges the motor skills the hand and eye co- ordination and evaluates the ability to do jobs lie packing, quality testing, quality inspection etc. 2. Intelligence test: - This test measures the numerical skills and reasoning abilities of the candidates. Such abilities become important in decision making. The test consists of logical reasoning ability, data interpretation, comprehension skills and basic language skills. 3. Personality test: - In this test the emotional ability or the emotional quotient is tested. This test judges the ability to work in a group, inter personal skills, ability to understand and handle conflicts and judge motivation levels. This test is becoming very popular now days. 4. Performance test: - This test judges and evaluates the acquired knowledge and experience of the knowledge and experience of the individual and his speed and accuracy in performing a job. It is used to test performance of typist, data entry operators etc.

Induction can be defined as a process of introducing the employee who is newly elected to the organization. It is also known as Socialization. When an employee is given a letter of appointment he joins the company on duty. The very first thing that the company does is, introduces the new employee to the organization and people working there. Normally the new employee is called together to the staff training college for the induction program. The induction starts with an introduction secession about the company, number of branches, a brief history of the company, number of products, number of countries operating in, organizational structure, culture, values, beliefs, the names of top management personnel etc. Apart from this introductory secession there will be other secessions also like secessions on behavioral science, soft skill training, secessions on giving details about the job, salary, bonus, information about different leaves that can be taken by the employee about upward mobility in the organization etc.



There are different ways in which secessions can be conducted i.e. using lecture method, power point presentation, group discussion, psychological test, roll play secessions etc

Purpose and Need - An employee has to work with fellow employees and his supervisor. For this he must know
them, the way they work and also the policies and practices of the organization so that he may integrate himself with the enterprise. Any neglect in the area of induction and orientation may lead to high labour turnover, confusion, wasted time and expenditure.

A good induction programme should cover the following:

1. 2. 3. 4. 5. 6. 7. 8. The company, its history and products, process of production and major operations involved in his job. The significance of the job with all necessary information about it including job training and job hazards. Structure of the organization and the functions of various departments. Employees own department and job, and how he fits into the organization. Personnel policy and sources of information. Company policies, practices, objectives and regulations. Terms and conditions of service, amenities and welfare facilities. Rules and regulations governing hours of work and over-time, safety and accident prevention, holidays and vacations, methods of reporting, tardiness and, absenteeism. 9. Grievances procedure and discipline handling. 10. Social benefits and recreation services. 11. Opportunities, promotions, transfer, suggestion schemes and job satisfaction.

An induction programme consists primarily of three steps:

1. General orientation by the staff: It gives necessary general information about the history and the operations of the firm. The purpose is to help an employee to build up some pride and interest in the organization. 2. Specific orientation by the job supervisor: The employee is shown the department and his place of work; the location of facilities and is told about the organizations specific practices and customs. The purpose is to enable the employee to adjust with his work and environment. 3. Follow-up orientation by either the personnel department or the supervisor: This is conducted within one week to six months of the initial induction and by a foreman or a specialist. The purpose is to find out whether the employee is reasonably well satisfied with him. Through personal talks, guidance and counseling efforts are made to remove the difficulties experienced by the newcomer

Define placement: - Companies conduct recruitment and selection and finally select employees. The employees
undergo an induction program. After the induction program is over the employee is given a specific job in the company. This is called placement.


Training is defined as the systematic development of the knowledge, skills and attitudes required by an individual to perform a given task or job successfully. Training aims at improving the organization's performance through the enhanced performance of its employees. While training helps employees do their current jobs, development prepares individuals to handle future responsibilities. The major purposes of training are improving employee performance, updating employee skills, avoiding managerial obsolescence, preparing for promotion and managerial succession, and satisfying personal growth needs. Training needs are determined based on the organization's and the employee's needs. Systematic evaluation of training activities helps in evaluating the success of the training program.

There are two types of training methods

1. On-the-job - In on-the-job training methods, an employee is given training in the actual work situation, where he learns by doing and through direct experience. Some of the on-the-job methods of training are job instruction training, apprenticeship and coaching, job rotation, and committee assignments. 2. Off-the-job - Off-the-job training refers to the training given to an employee away from the immediate work area. Here the employee focuses his attention upon learning from the trainer's lectures or through



simulated exercises. Off-the-job training methods include classroom lectures; various simulation exercises like case exercises, experiential exercises, computer modeling, vestibule training and role playing; and programmed instruction. Training increases productivity, reduces the level of supervision required, reduces accidents related to work and increases organizational stability. Apart from training, an organization should also concentrate on management development. Management development is a systematic process of growth and development by which employees develop their skills and abilities to manage. Management development improves a manager's ability to understand problems and arrive at solutions. It helps the manager in effective handling of his different work roles like planning, monitoring performance, communication and development. Management development programs are designed to meet specific objectives, which contribute to both employee and organizational effectiveness.

There are several steps in the process of management development.

1. 2. 3. 4. 5. Reviewing organizational objectives Evaluating the organization's current management resources Determining individual development needs Designing and implementing development programs Evaluating the effectiveness of these programs

The two categories of development methods

1. On-the-job development - Some of the widely used on-the-job development methods are: coaching, job rotation, under study assignments and multiple management. 2. Off-the-job development - Off-the-job development methods include simulation exercises, sensitivity training, transactional analysis, conferences and lectures. To ensure the success of the management development programs, they have to be evaluated from time to time.


Performance appraisal is the process of obtaining, analyzing and recording information about the relative worth of an employee. The focus of the performance appraisal is measuring and improving the actual performance of the employee and also the future potential of the employee. Its aim is to measure what an employee does. It is a powerful tool to calibrate, refine and reward the performance of the employee. It helps to analyze his achievements and evaluate his contribution towards the achievements of the overall organizational goals. Performance appraisal is an analysis of an employee's recent successes and failures, personal strengths and weaknesses, and suitability for promotion or further training. It is also the judgment of an employee's performance in a job based on considerations other than productivity alone. By focusing the attention on performance, performance appraisal goes to the heart of personnel management and reflects the management's interest in the progress of the employees. Performance appraisal is a systematic way of reviewing and assessing the performance of an employee during a given period of time and planning for his future. According to Flippos, - "performance appraisal is the systematic, periodic and an impartial rating of an employees excellence in the matters pertaining to his present job and his potential for a better job."

Objectives Of Performance appraisal:

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. To review the performance of the employees over a given period of time. To judge the gap between the actual and the desired performance. To help the management in exercising organizational control. Helps to strengthen the relationship and communication between superior subordinates and management employees. To diagnose the strengths and weaknesses of the individuals so as to identify the training and development needs of the future. To provide feedback to the employees regarding their past performance. Provide information to assist in the other personal decisions in the organization. Provide clarity of the expectations and responsibilities of the functions to be performed by the employees. To judge the effectiveness of the other human resource functions of the organization such as recruitment, selection, training and development. To reduce the grievances of the employees.


Performance Appraisal process
Steps 1 - Establishing performance standards Steps 2 - Communicating standards and expectations Steps 3 - Measuring the actual performance Steps 4 - Comparing with standards Steps 5 - Discussing results (providing feedback) Steps 6 - Decision making (taking corrective actions)


Types of performance and aptitude assessments

1. 2. 3. 4. 5. 6. 7. 8. 9. Formal annual performance appraisals - Probationary reviews Informal one-to-one review discussions - Counseling meetings Observation on the job Skill- or job-related tests Assignment or task followed by review, including secondments (temporary job cover or transfer) Assessment centres, including observed group exercises, tests presentations, etc. Survey of opinion of others who have dealings with the individual Psychometric tests and other behavioural assessments Graphology (handwriting analysis)

Methods of Performance Appraisal

A common approach to assessing performance is to use a numerical or scalar rating system whereby managers are asked to score an individual against a number of objectives/attributes. In some companies, employees receive assessments from their manager, peers, subordinates, and customers, while also performing a self assessment this is known as a 360-degree appraisal and forms good communication patterns. The most popular methods used in the performance appraisal process include the following: 1. Management by objectives 2. 360-degree appraisal 3. Behavioral observation scale 4. behaviorally anchored rating scales



Job evaluation is the process of systematically determining a relative internal value of a job in an organization. In all cases the idea is to evaluate the job, not the person doing it. It is the process of determining the worth of one job in relation to that of the other jobs in a company so that a fair and equitable wage and salary system can be established. Job evaluation is a practical technique, designed to enable trained and experienced staff to judge the size of one job relative to others. It does not directly determine pay levels, but will establish the basis for an internal ranking of jobs. Job evaluation is different from performance appraisal. In job evaluation, worth of a job is calculated while in performance appraisal, the worth of employee is rated. Job evaluation represents an effort to determine the relative value of every job in a plant and to determine what the fair basic wage for such a job should be. Job evaluation is a process of determining the relative worth of a job. It is a process which is helpful even for framing compensation plans by the personnel manager.

Principles of Job Evaluation

1. Clearly defined and identifiable jobs must exist. These jobs will be accurately described in an agreed job description. 2. All jobs in an organisation will be evaluated using an agreed job evaluation scheme. 3. Job evaluators will need to gain a thorough understanding of the job 4. Job evaluation is concerned with jobs, not people. It is not the person that is being evaluated. 5. The job is assessed as if it were being carried out in a fully competent and acceptable manner. 6. It is possible to make a judgement about a job's contribution relative to other jobs in an organisation. 7. The real test of the evaluation results is their acceptability to all participants. 8. Job evaluation can aid organisational problem solving as it highlights duplication of tasks and gaps between jobs and functions

Job evaluation methods - There are three basic methods of job evaluation. This scheme evaluates job
responsibilities in the light of three major factors - know how, problem solving and accountability. 1. Ranking Method - According to this method, jobs are arranged from highest to lowest in order of their value or merit and the relative difficulty in performing them and job at the top of the list has the highest value and obviously the job at the bottom of the list will have the lowest value. 2. Classification method - According to this method a predetermined number of jobs groups or job classes are established and jobs are assigned to these classification. This method places grouped into Job classes or job grades. Separate classes may include office, clerical, managerial, personnel Class I - Executives: Office manager, office superintendent, departmental supervisor



Class II - Skilled Workers: Purchasing assistant, Cashier, Receipts clerk Class III - Semiskilled Workers: Steno typists, Machine operators, Switchboard operators Class IV - Semiskilled Workers: Daftaris, file clerk, office boys 3. Factor comparison method - Under this method, instead of ranking complete jobs, each job is ranked according to a series of factor. These factors include mental effort, physical effort, skill needed, supervisory responsibility, working condition and other relevant factor (for instance: - know - how, problem solving abilities, accountability Pay will be assigned in this method by comparing the weights of the factors required for each job. That is, the present wages paid for key jobs may be divided among the factors weights by importance.

Job evaluation as a process is advantageous to a company in many ways:

1. Reduction in inequalities in salary structure - It is found that people and their motivation are dependent upon how well they are being paid. Therefore the main objective of job evaluation is to have external and internal consistency in salary structure so that inequalities in salaries are reduced. 2. Specialization - Because of division of labour and thereby specialization, a large number of enterprises have got hundred jobs and many employees to perform them. Therefore, an attempt should be made to define a job and thereby fix salaries for it. This is possible only through job evaluation. 3. Helps in selection of employees - The job evaluation information can be helpful at the time of selection of candidates. The factors that are determined for job evaluation can be taken into account while selecting the employees. 4. Harmonious relationship between employees and manager - Through job evaluation, harmonious and congenial relations can be maintained between employees and management, so that all kinds of salaries controversies can be minimized. 5. Standardization - The process of determining the salary differentials for different jobs become standardized through job evaluation. This helps in bringing uniformity into salary structure. 6. Relevance of new jobs - Through job evaluation, one can understand the relative value of new jobs in a concern

The relationship between Employer and employee or trade unions is called Industrial Relation. Industrial relations are used to denote the collective relationships between management and the workers. Traditionally, the term industrial relations is used to cover such aspects of industrial life as trade unionism, collective bargaining, workers participation in management, discipline and grievance handling, industrial disputes and interpretation of labor laws and rules and code of conduct. Many outsiders also equate industrial relations to labour relations and believe that industrial relations only studies unionized employment situations, but this is an oversimplification. Industrial relations affect not merely the interests of the two participants- labor and management, but also the economic and social goals to which the State addresses itself. To regulate these relations in socially desirable channels is a function, which the State is in the best position to perform. The employees, trade unions and management are the three major players in industrial relations. The government also has a key role to play, but steps in only when the major players fail to maintain harmonious industrial relations. The government also provides the basic framework for industrial relations through its legislation. The industrial disputes prevention machinery helps in averting situations of conflict between the management and the workers that might lead to a strike or a lock-out. Some of the basic requirements for prevention of industrial disputes are an effective grievance redressal system, worker participation in management and collective bargaining.

The main aspect of Industrial Relations is:1. 2. 3. 4. 5. 6. 7. Labor Relations, i.e. relations between union and management. Employer-employees relations, i.e. relations between management and employees. Group relations, i.e. relations between various groups of workmen. Community or Public relations, i.e. relations between industry and society. Promotions and development of healthy labor-managements relations. Maintenance of industrial peace and avoidance of industrial strife Development of true industrial Democracy.


Objectives of Industrial Relation


1. To safeguard the interest of labor and management by securing the highest level of mutual understanding and good-will among all those sections in the industry which participate in the process of production. 2. To avoid industrial conflict or strife and develop harmonious relations, which are an essential factor in the productivity of workers and the industrial progress of a country. 3. To raise productivity to a higher level in an era of full employment by lessening the tendency to high turnover and frequency absenteeism. 4. To establish and nurse the growth of an Industrial Democracy based on labor partnership in the sharing of profits and of managerial decisions, so that ban individuals personality may grow its full stature for the benefit of the industry and of the country as well. 5. To eliminate, as far as is possible and practicable, strikes, lockouts and gheraos by providing reasonable wages, improved living and working conditions, said fringe benefits. 6. To establish government control of such plants and units as are running at a loss or in which productions has to be regulated in the public interest. 7. Improvements in the economic conditions of workers in the existing state of industrial managements and political government. 8. Control exercised by the state over industrial undertaking with a view to regulating production and promoting harmonious industrial relations. 9. Socializations or rationalization of industries by making the state itself a major employer 10. Vesting of a proprietary interest of the workers in the industries in which they are employed.

Effects of poor Industrial Relations

1. Multiplier effects: Modern industry and for that matter modern economy are interdependent. Hence although the direct loss caused due to industrial conflict in any one plant may not be very great, the total loss caused due to its multipliers effect on the total economy is always very great. 2. Fall in normal tempo: poor Industrial Relations adversely effect the normal tempo of work so that work far below the optimum level. Costs build up. Absenteeism and labor turnover increase. Plants discipline breaks down and both the quality and quality of production suffer. 3. Resistance of change: Dynamic industrial situation calls for change more or less continuously. Methods have to be improved. Economics have to be introduced. New products have to be designed, produced and put in the market. Each of these tasks involves a whole chain of changes and this is resisted bitterly if these are industrial conflict. 4. Frustration and social cost: every man comes to the work place not only to earn a living. He wants to satisfy his social and egoistic needs also. When he finds difficulty in satisfying these needs he feels frustrated. Poor Industrial Relations take a heavy toll in terms of human frustration. They reduce cordiality and aggravate social tension.

Suggestions to Improve Industrial Relation:1. Both management and unions should develop constructive attitudes towards each other 2. All basic policies and procedures relating to Industrial Relation should be clear to everybody in the organization and to the union leader. The personnel manager must make certain that line people will understand and agree with these policies. 3. The personnel manager should remove any distrust by convincing the union of the companys integrity and his own sincerity and honesty. Suspicious, rumors and doubts should all be put to rest. 4. The personnel manager should not vie with the union to gain workersloyal to both the organization. Several research studies also confirm the idea of dual allegiance. There is strong evidence to discard the belief that one can owe allegiance to one group only. 5. Management should encourage right kind of union leadership. While it is not for the management to interfere with union activities, or choose the union leadership, its action and attitude will go a long way towards developing the right kind of union leadership. Management gets the union it deserves is not just an empty phrase.




1. Uninterrupted production The most important benefit of industrial relations is that this ensures continuity of production. This means, continuous employment for all from manager to workers. The resources are fully utilized, resulting in the maximum possible production. There is uninterrupted flow of income for all. Smooth running of an industry is of vital importance for several other industries; to other industries if the products are intermediaries or inputs; to exporters if these are export goods; to consumers and workers, if these are goods of mass consumption. 2. Reduction in Industrial Disputes Good industrial relation reduce the industrial disputes. Disputes are reflections of the failure of basic human urges or motivations to secure adequate satisfaction or expression which are fully cured by good industrial relations. Strikes, lockouts, go-slow tactics, gheraos and grievances are some of the reflections of industrial unrest which do not spring up in an atmosphere of industrial peace. It helps promoting co-operation and increasing production. 3. High morale Good industrial relations improve the morale of the employees. Employees work with great zeal with the feeling in mind that the interest of employer and employees is one and the same, i.e. to increase production. Every worker feels that he is a co-owner of the gains of industry. The employer in his turn must realize that the gains of industry are not for him along but they should be shared equally and generously with his workers. In other words, complete unity of thought and action is the main achievement of industrial peace. It increases the place of workers in the society and their ego is satisfied. It naturally affects production because mighty co-operative efforts alone can produce great results. 4. Mental Revolution The main object of industrial relation is a complete mental revolution of workers and employees. The industrial peace lies ultimately in a transformed outlook on the part of both. It is the business of leadership in the ranks of workers, employees and Government to work out a new relationship in consonance with a spirit of true democracy. Both should think themselves as partners of the industry and the role of workers in such a partnership should be recognized. On the other hand, workers must recognize employers authority. It will naturally have impact on production because they recognize the interest of each other. 5. New Programmes New programmes for workers development are introduced in an atmosphere of peace such as training facilities, labor welfare facilities etc. It increases the efficiency of workers resulting in higher and better production at lower costs. 6. Reduced Wastage Good industrial relations are maintained on the basis of cooperation and recognition of each other. It will help increase production. Wastages of man, material and machines are reduced to the minimum and thus national interest is protected.


Labor welfare entails all those activities of employer which are directed towards providing the employees with certain facilities and services in addition to wages or salaries. Employee welfare is a comprehensive term including various services, benefits and facilities offered to employees & by the employers. Through such generous fringe benefits the employer makes life worth living for employees. Employee welfare entails all those activities of employer which are directed towards providing the employees with certain facilities and services in addition to wages or salaries. Welfare includes anything that is done for the comfort and improvement of employees and is provided over and above the wages. Welfare helps in keeping the morale and motivation of the employees high so as to retain the employees for longer duration. The welfare measures need not be in monetary terms only but in any kind/forms. Employee welfare includes monitoring of working conditions, creation of industrial harmony through infrastructure for health, industrial relations and insurance against disease, accident and unemployment for the workers and their families.

Labor welfare has the following objectives: The purpose of labor welfare is to bring about the development of
the whole personality of the workers to make a better workforce. The very logic behind providing welfare schemes is to create efficient, healthy, loyal and satisfied labor force for the organization. The purpose of providing such facilities is to make their work life better and also to raise their standard of living. To provide better life and health to the workers To make the workers happy and satisfied To relieve workers from industrial fatigue and to improve intellectual, cultural and material conditions of living of the workers.


The basic features of labor welfare measures are as follows:


1. Labor welfare includes various facilities, services and amenities provided to workers for improving their health, efficiency, economic betterment and social status. 2. Welfare measures are in addition to regular wages and other economic benefits available to workers due to legal provisions and collective bargaining 3. Labor welfare schemes are flexible and ever-changing. New welfare measures are added to the existing ones from time to time. 4. Welfare measures may be introduced by the employers, government, employees or by any social or charitable agency. 5. Employers get stable labor force by providing welfare facilities. Workers take active interest in their jobs and work with a feeling of involvement and participation. 6. Employee welfare measures increase the productivity of organization and promote healthy industrial relations thereby maintaining industrial peace. 7. The social evils prevalent among the labors such as substance abuse, etc are reduced to a greater extent by the welfare policies.

A trade union is an organization of employees formed on a continuous basis for the purpose of securing diverse range of benefits. It is a continuous association of wage earners for the purpose of maintaining and improving the conditions of their working lives. It has been evolved to protect workers rights against management's atrocities in the modern industry. They raised a collective voice for the improvement of workers wages, working conditions, and their social welfare. Basically, workers joined trade unions to protect their economic, social and political interests and to satisfy their need for belongingness. It has been classified either on the basis of purpose or on the basis of membership structure. Reformist and revolutionary unions are formed on the basis of purpose. Reformist unions are further classified into business and uplift unions. On the other hand, revolutionary unions are further classified into political, anarchist, and predatory unions. Predatory unions can be either hold-up or guerilla unions. Craft unions, industrial unions, and general unions are based on membership structure. Over the years, the power of unionism has weakened due to a shift in the nature of workforce among other factors. Trade unions in India have always been plagued by multiple unionism, inter-union rivalry, political interference, financial weakness and uneven growth of unionism. With the advent of globalization and privatization, these unions fear that their importance and power will decline. The survival of these unions largely depends on their adaptability and improvement in their functioning. Their future success depends on their ability to develop healthy relations with employers and the government by redesigning their objectives, roles and strategies.

Features of trade unions:

1. It is an association either of employers or employees or of independent workers. They may consist of:Employers association (e.g., Employers Federation of India, Indian paper mill association, etc.) General labor unions Friendly societies Unions of intellectual labor (e.g., All India Teachers Association) 2. It is formed on a continuous basis. It is a permanent body and not a casual or temporary one. They persist throughout the year. 3. It is formed to protect and promote all kinds of interests economic, political and social-of its members. The dominant interest with which a union is concerned is, however, economic. 4. It achieves its objectives through collective action and group effort. Negotiations and collective bargaining are the tools for accomplishing objectives. 5. Trade unions have shown remarkable progress since their inception; moreover, the character of trade unions has also been changing. In spite of only focusing on the economic benefits of workers, the trade unions are also working towards raising the status of labors as a part of industry.



Does anybody know the meaning of Grievance and Complaint, many of us will say its a same thing but sorry its not a grievance is a complaint that has been put in writing & thus made formal and a complaint which is merely an indication of employee dissatisfaction that has not been submitted in writing. In India major public company have union which have created a lot of strikes or lockout which affect the company performance and indirect effect on normal citizen. Unions know that employee dissatisfaction is a potential source of trouble, whether it is expressed or not. Hidden dissatisfaction grows and creates reactions that may be completely out of proportion to the original concerns. Therefore, it is important that dissatisfaction be given an outlet. A complaint, which is merely an indication of employee dissatisfaction that has not been submitted in writing, is one outlet. If the employee is represented by a union, and the employee says, I should get raise in salary at the rate of impossible percent which is supported by unions head, and he/she submits it in writing, then that complaint is a grievance. Grievance management in private companies. A grievance is a complaint that has been put in writing and thus made formal. Management should be concerned with both complaints and grievances, because both may be important indicators of potential problems within the workforce. Without a grievance procedure, management may be unable to respond to employee concerns because managers are unaware of them. Therefore, a formal grievance procedure is a valuable communication tool for the organization.

Grievance Responsibilities - The typical division of responsibilities lies between the HR unit and line managers for
handling grievances. These responsibilities vary considerably from one organization to another, even between unionized firms. But the HR unit usually has more general responsibilities. Managers must accept the grievance procedure as a possible constraint on some of their decisions. Management should recognize that a grievance is a behavioral expression of some underlying problem. This statement does not mean that every grievance is a symptom of something radically wrong. Employees do file grievances over petty matters as well as over important concerns, and management must be able to differentiate between the two. However, to ignore a repeated problem by taking a legalistic approach to grievance resolution is to miss much of what the grievance procedure can do for management.

Grievance Procedures - Grievance procedures are formal communications channels designed to settle a grievance
as soon as possible after the problem arises. First-line supervisors are usually closest to a problem; however, the supervisor is concerned with many other matters besides one employees grievance, and may even be the subject of an employees grievance. The grievance procedures differ from organization to organization. 1. Open door policy - Under this policy, the aggrieved employee is free to meet the top executives of the organization and get his grievances redressed. Such a policy works well only in small organizations. However, in bigger organizations, top management executives are usually busy with other concerned matters of the company. Moreover, it is believed that open door policy is suitable for executives; operational employees may feel shy to go to top management. 2. Step-ladder policy - Under this policy, the aggrieved employee has to follow a step by step procedure for getting his grievance redressed. In this procedure, whenever an employee is confronted with a grievance, he presents his problem to his immediate supervisor. If the employee is not satisfied with superiors decision, then he discusses his grievance with the departmental head. The departmental head discusses the problem with joint grievance committees to find a solution. However, if the committee also fails to redress the grievance, then it may be referred to chief executive. If the chief executive also fails to redress the grievance, then such a grievance is referred to voluntary arbitration where the award of arbitrator is binding on both the parties.

Steps in a Grievance procedure

1. 2. 3. 4. 5. The employee discusses the grievance with the unions representative on the job and the supervisor. The unions representative discusses the grievance with the supervisors manager. The union grievance committee discusses the grievance with appropriate company managers. The representative of the national union discusses the grievance with designated company executives. The final step may be to use an impartial third party for ultimate disposition



An organizations human resource is its most valuable asset. The employees are the repository of knowledge, skills and abilities that cant be imitated by the competitors. Technologies, products and processes are easily imitated by the competitors; however, at the end of the day, employees are the most strategic resource of the company. Generally, people are a firms most underutilized resource. And that is why management tries to empower the employees. Many managers are reluctant to fully accept and apply employee empowerment as they feel they have to" let go" of their power. Empowerment is not about "letting go, it's about sharing your power with the ones below you. However, employee empowerment will change processes and their impacts: as decision making, problem solving etc. Empowerment is a further step from participation; it's about action and autonomous decisions and analysis. Employees have full authority to not only participate in decision making processes but to make decisions based on their own findings and expertise. Successful empowerment involves trust, respect and openness. Employee empowerment is a process that benefits individuals, managers and the overall productivity of companies. Employees become more involved, feel valued and stimulated to over deliver. People who work on a job develop their skills daily. They know exactly what works efficiently and what doesn't. They also have very creative ideas on improving situations and solving problems. They become experts without the power of exercising their expertise. Employment relations require a greater responsibility on the part of the employer in managing disputes that might arise in an organisation. Employer/employee relations are often under stress. HRM must act as buffer in avoiding situations that lead to disputes and claims in courts. Mediation processes help in dispute resolution. Fairness in dealing with the dispute situations helps HRM to stand out from the organisation in which they are part of. The Employment Relations Act enables HRM to avoid disputes and punitive damage claims. Sound legal knowledge will be required to manage employment agreements, which will result in the avoidance of dispute situations.

An organizations human resource is its most valuable asset. The employees are the repository of knowledge, skills and abilities that cant be imitated by the competitors. Technologies, products and processes are easily imitated by the competitors; however, at the end of the day, employees are the most strategic resource of the company. Employee empowerment is a term used to express the ways in which non-managerial staff can make autonomous decisions without consulting a boss/manager. These self-willed decisions can be small or large depending upon the degree of power with which the company wishes to invest employees. Many managers are reluctant to fully accept and apply employee empowerment as they feel they have to" let go" of their power. Empowerment is not about "letting go, it's about sharing your power with the ones below you. However, employee empowerment will change processes and their impacts: as decision making, problem solving etc. Employees have full authority to not only participate in decision making processes but to make decisions based on their own findings and expertise. Successful empowerment involves trust, respect and openness. In your role as manager it's imperative to believe in your team's ability to operate and make decisions autonomously. At the same time it is also important to be there as a facilitator and a coach. The best approach to start the empowerment process is to discuss with your team and design a plan that makes empowerment a practice without overwhelming them. Empowerment is hard to measure. There are no statistics and number to determine percentages or amount of empowerment. It is important to identify qualitative criteria to measure the positive impact of empowerment without forgetting that the change does not happen overnight. Empowerment includes supervisors and employees working together to establish clear goals and expectations within agreed-upon boundaries. "An empowered organization is one in which individuals have the knowledge, skill, desire, and opportunity to personally succeed in a way that leads to collective organizational success." - Stephen Covey

Indicators to success are:

1. Open management - team members participate actively in meetings, diagnose issues, analyze and identify solutions. Managers believe in their capacity and have less or no control in processes that involve finding of solutions, decision making etc. 2. Team spirit - high morale, enthusiasm 3. Decentralized control: each team member functions relatively autonomously: interlinking job descriptions; clarity on individual roles.